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Financial instruments (Tables)
 6 Months Ended
Jun. 30, 2020
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments
Fair value of financial instruments
June 30, 2020
Carrying
amount
 
Fair
value
 
Level 1
 
Level 2
 
Level 3
Long-term investments carried at fair value
$
1,417,524

 
$
1,417,524

 
1,307,814

 
$
26,650

 
$
83,060

Development loans and other receivables
104,005

 
111,274

 
—

 
111,274

 
—

Derivative instruments (1):
 
 
 
 
 
 
 
 
 
Energy contracts designated as a cash flow hedge
58,383

 
58,383

 
—

 
—

 
58,383

Energy contracts not designated as cash flow hedge
460

 
460

 
—

 
—

 
460

Commodity contracts for regulated operations
57

 
57

 
—

 
57

 
—

Cross currency swap designated as a net investment hedge
13,578

 
13,578

 
—

 
13,578

 
—

Total derivative instruments
72,478

 
72,478

 
—

 
13,635

 
58,843

Total financial assets
$
1,594,007

 
$
1,601,276

 
$
1,307,814

 
$
151,559

 
$
141,903

Long-term debt
$
4,154,776

 
$
4,616,138

 
$
1,575,663

 
$
3,040,475

 
$
—

Convertible debentures
314

 
548

 
548

 
—

 
—

Preferred shares, Series C
12,975

 
14,634

 
—

 
14,634

 
—

Derivative instruments (1):
 
 
 
 
 
 
 
 
 
Energy contracts designated as a cash flow hedge
2,004

 
2,004

 
—

 
—

 
2,004

Energy contracts not designated as a cash flow hedge
86

 
86

 
—

 
—

 
86

Cross-currency swap designated as a net investment hedge
106,007

 
106,007

 
—

 
106,007

 
—

Forward interest rate swaps designated as a hedge

10,924

 
10,924

 
—

 
10,924

 
—

Commodity contracts for regulated operations
580

 
580

 
—

 
580

 
—

Total derivative instruments
119,601

 
119,601

 
—

 
117,511

 
2,090

Total financial liabilities
$
4,287,666

 
$
4,750,921

 
$
1,576,211

 
$
3,172,620

 
$
2,090

(1) Balance of $153 associated with certain weather derivatives have been excluded, as they are accounted for based on intrinsic value rather than fair value.
21.
Financial instruments (continued)
(a)
Fair value of financial instruments (continued)
December 31, 2019
Carrying
amount
 
Fair
value
 
Level 1
 
Level 2
 
Level 3
Long-term investment carried at fair value
$
1,294,147

 
$
1,294,147

 
$
1,178,581

 
$
27,072

 
$
88,494

Development loans and other receivables
37,050

 
37,984

 
—

 
37,984

 
—

Derivative instruments:
 
 
 
 
 
 
 
 
 
Energy contracts designated as a cash flow hedge
65,304

 
65,304

 
—

 
—

 
65,304

Energy contracts not designated as a cash flow hedge
20,384

 
20,384

 
—

 
—

 
20,384

Commodity contracts for regulatory operations
16

 
16

 
—

 
16

 
—

Total derivative instruments
85,704

 
85,704

 
—

 
16

 
85,688

Total financial assets
$
1,416,901

 
$
1,417,835

 
$
1,178,581

 
$
65,072

 
$
174,182

Long-term debt
$
3,931,868

 
$
4,284,068

 
$
1,495,153

 
$
2,788,915

 
$
—

Convertible debentures
342

 
623

 
623

 
—

 
—

Preferred shares, Series C
13,793

 
15,120

 
—

 
15,120

 
—

Derivative instruments:
 
 
 
 
 
 
 
 
 
Energy contracts designated as a cash flow hedge
789

 
789

 
—

 
—

 
789

Cross-currency swap designated as a net investment hedge
81,765

 
81,765

 
—

 
81,765

 
—

Currency forward contract not designated as hedge
38

 
38

 
—

 
—

 
38

Commodity contracts for regulated operations
2,072

 
2,072

 
—

 
2,072

 
—

Total derivative instruments
84,664

 
84,664

 
—

 
83,837

 
827

Total financial liabilities
$
4,030,667

 
$
4,384,475

 
$
1,495,776

 
$
2,887,872

 
$
827
Summary of Commodity Volumes Associated with Derivative Contracts
The following are commodity volumes, in dekatherms (“dths”) associated with the above derivative contracts:
 
2020

Financial contracts: Swaps
2,315,733

         Options
188,834

Forward contracts
2,000,000

 
4,504,567
Impact of Change in Fair Value of Natural Gas Derivative Contracts
The following table presents the impact of the change in the fair value of the Company’s natural gas derivative contracts had on the unaudited interim consolidated balance sheets: 
 
 
June 30, 2020
 
December 31, 2019
Regulatory assets:
 
 
 
 
Swap contracts
 
$
129

 
$
28

Option contracts
 
16

 
38

Forward contracts
 
$
809

 
$
1,830

Regulatory liabilities:
 
 
 
 
Swap contracts
 
$
139

 
$
743

Option contracts
 
$
25

 
$
—
Long-Term Energy Derivative Contracts
The Company reduces the price risk on the expected future sale of power generation at Sandy Ridge, Senate and Minonk Wind Facilities by entering into the following long-term energy derivative contracts. 
Notional quantity
(MW-hrs)
 
Expiry
 
Receive average
prices (per MW-hr)
 
Pay floating price
(per MW-hr)
692,015

 
 December 2028
 
34.65
 
PJM Western HUB
3,170,648

 
 December 2027
 
25.13
 
NI HUB
2,469,582

 
 December 2027
 
36.46
 
ERCORT North HUB
Derivative Financial Instruments Designated as Cash Flow Hedge, Effect on Consolidated Statement of Operations
The following table summarizes OCI attributable to derivative financial instruments designated as a cash flow hedge: 
 
Three months ended June 30
 
Six months ended June 30
 
2020
 
2019
 
2020
 
2019
Effective portion of cash flow hedge
$
(2,085
)
 
$
6,442

 
$
(12,890
)
 
$
10,087

Amortization of cash flow hedge
(1,100
)
 
(8
)
 
(1,108
)
 
(16
)
Amounts reclassified from AOCI
(3,028
)
 
5,733

 
(6,303
)
 
3,559

OCI attributable to shareholders of APUC
$
(6,213
)
 
$
12,167

 
$
(20,301
)
 
$
13,630
Effects on Statement of Operations of Derivative Financial Instruments Not Designated as Hedges The effects on the unaudited interim consolidated statements of operations of derivative financial instruments not designated as hedges consist of the following:
 
Three months ended June 30
 
Six months ended June 30
 
2020
 
2019
 
2020
 
2019
Change in unrealized gain (loss) on derivative financial instruments:
 
 
 
 
 
 
 
Energy derivative contracts
$
449

 
$
398

 
$
627

 
$
398

Currency forward contract
—

 
145

 
—

 
(417
)
Total change in unrealized gain (loss) on derivative financial instruments
$
449

 
$
543

 
$
627

 
$
(19
)
Realized gain (loss) on derivative financial instruments:
 
 
 
 
 
 
 
Energy derivative contracts
(549
)
 
—

 
(681
)
 
(207
)
Currency forward contract
—

 
288

 
—

 
573

Total realized gain (loss) on derivative financial instruments
$
(549
)
 
$
288

 
$
(681
)
 
$
366

Gain (loss) on derivative financial instruments not accounted for as hedges
(100
)
 
831

 
(54
)
 
347

Amortization of AOCI gains frozen as a result of hedge dedesignation
1,489

 
11

 
1,500

 
22

 
$
1,389

 
$
842

 
$
1,446

 
$
369

Amounts recognized in the unaudited interim consolidated statements of operations consist of:
 
 
 
 
 
 
 
Gain on derivative financial instruments
$
1,389

 
$
409

 
$
1,446

 
$
213

Gain on foreign exchange
—

 
433

 
—

 
156

 
$
1,389

 
$
842

 
$
1,446

 
$
369

(c)
Risk management
In the normal course of business, the Company is exposed to financial risks that potentially impact its operating results. The Company employs risk management strategies with a view to mitigate these risks to the extent possible on a cost effective basis.