XML 61 R35.htm IDEA: XBRL DOCUMENT v3.10.0.1
Fair Value (Tables)
 6 Months Ended
Jun. 30, 2018
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]  
Fair Value Inputs, Liabilities, Quantitative Information [Table Text Block]
The following table presents the quantitative information which was used to estimate the fair values of the Level 3 assets and liabilities above as of June 30, 2018 (dollars in thousands):
 
 
Fair Value (Net) at
 
 
 
 
 
 
 
 
June 30, 2018
 
Valuation Technique
 
Unobservable
Input
 
Range
Power exchange agreement
 
$
(6,345
)
 
Surrogate facility
pricing
 
O&M charges
 
$40.05-$52.59/MWh (1)
 
 
 
 
Transaction volumes
 
292,145 MWhs
Power option agreement

 
$
(5
)
 
Black-Scholes-
Merton
 
Strike price
 
$36.20/MWh - 2019
 
 
 
 
 
$41.55/MWh - 2019
 
 
 
 
Delivery volumes
 
94,221 - 96,907 MWhs
Natural gas exchange
agreement
 
$
(3,480
)
 
Internally derived
weighted average
cost of gas
 
Forward purchase
prices
 
$1.28 - $1.67/mmBTU
 
 
 
 
 
 
 
 
 
Forward sales prices
 
$1.34 - $3.01/mmBTU
 
 
 
 
Purchase volumes
 
115,000 - 310,000 mmBTUs
 
 
 
 
Sales volumes
 
60,000 - 310,000 mmBTUs
Carrying Value and Estimated Fair Value of Financial Instruments
The following table sets forth the carrying value and estimated fair value of the Company’s financial instruments not reported at estimated fair value on the Condensed Consolidated Balance Sheets as of June 30, 2018 and December 31, 2017 (dollars in thousands):
 
June 30, 2018
 
December 31, 2017
 
Carrying
Value
 
Estimated
Fair Value
 
Carrying
Value
 
Estimated
Fair Value
Long-term debt (Level 2)
$
1,053,500

 
$
1,126,643

 
$
951,000

 
$
1,067,783

Long-term debt (Level 3)
767,000

 
748,342

 
767,000

 
810,598

Snettisham capital lease obligation (Level 3)
58,478

 
57,000

 
59,745

 
61,700

Long-term debt to affiliated trusts (Level 3)
51,547

 
40,207

 
51,547

 
41,882
Fair Value of Assets And Liabilities Measured on Recurring Basis
 
Level 1
 
Level 2
 
Level 3
 
Counterparty
and Cash
Collateral
Netting (1)
 
Total
June 30, 2018
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
Energy commodity derivatives
$
—

 
$
42,936

 
$
—

 
$
(42,825
)
 
$
111

Level 3 energy commodity derivatives:
 
 
 
 
 
 
 
 
 
Natural gas exchange agreement
—

 
—

 
25

 
(25
)
 
—

Foreign currency exchange derivatives
—

 
16

 
—

 
(16
)
 
—

Interest rate swap derivatives
—

 
12,314

 
—

 
—

 
12,314

Deferred compensation assets:
 
 
 
 
 
 
 
 
 
Mutual Funds:
 
 
 
 
 
 
 
 
 
Fixed income securities (2)
1,850

 
—

 
—

 
—

 
1,850

Equity securities (2)
6,488

 
—

 
—

 
—

 
6,488

Total
$
8,338

 
$
55,266

 
$
25

 
$
(42,866
)
 
$
20,763

 
Level 1
 
Level 2
 
Level 3
 
Counterparty
and Cash
Collateral
Netting (1)
 
Total
Liabilities:
 
 
 
 
 
 
 
 
 
Energy commodity derivatives
$
—

 
$
66,133

 
$
—

 
$
(64,606
)
 
$
1,527

Level 3 energy commodity derivatives:
 
 
 
 
 
 
 
 
 
Natural gas exchange agreement
—

 
—

 
3,505

 
(25
)
 
3,480

Power exchange agreement
—

 
—

 
6,345

 
—

 
6,345

Power option agreement
—

 
—

 
5

 
—

 
5

Foreign currency exchange derivatives
—

 
21

 
—

 
(16
)
 
5

Interest rate swap derivatives
—

 
5,491

 
—

 
(590
)
 
4,901

Total
$
—

 
$
71,645

 
$
9,855

 
$
(65,237
)
 
$
16,263

December 31, 2017
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
Energy commodity derivatives
$
—

 
$
43,814

 
$
—

 
$
(42,550
)
 
$
1,264

Level 3 energy commodity derivatives:
 
 
 
 
 
 
 
 
 
Natural gas exchange agreement
—

 
—

 
183

 
(183
)
 
—

Foreign currency exchange derivatives
—

 
32

 
—

 
(1
)
 
31

Interest rate swap derivatives
—

 
7,477

 
—

 
(2,574
)
 
4,903

Deferred compensation assets:
 
 
 
 
 
 
 
 
 
Mutual Funds:
 
 
 
 
 
 
 
 
 
Fixed income securities (2)
1,638

 
—

 
—

 
—

 
1,638

Equity securities (2)
6,631

 
—

 
—

 
—

 
6,631

Total
$
8,269

 
$
51,323

 
$
183

 
$
(45,308
)
 
$
14,467

Liabilities:
 
 
 
 
 
 
 
 
 
Energy commodity derivatives
$
—

 
$
71,342

 
$
—

 
$
(69,988
)
 
$
1,354

Level 3 energy commodity derivatives:
 
 
 
 
 
 
 
 
 
Natural gas exchange agreement
—

 
—

 
3,347

 
(183
)
 
3,164

Power exchange agreement
—

 
—

 
13,245

 
—

 
13,245

Power option agreement
—

 
—

 
19

 
—

 
19

Foreign currency exchange derivatives
—

 
1

 
—

 
(1
)
 
—

Interest rate swap derivatives
—

 
73,513

 
—

 
(37,544
)
 
35,969

Total
$
—

 
$
144,856

 
$
16,611

 
$
(107,716
)
 
$
53,751

(1)
The Company is permitted to net derivative assets and derivative liabilities with the same counterparty when a legally enforceable master netting agreement exists. In addition, the Company nets derivative assets and derivative liabilities against any payables and receivables for cash collateral held or placed with these same counterparties.
(2)
These assets are trading securities and are included in other property and investments-net and other non-current assets on the Condensed Consolidated Balance Sheets.
Reconciliation for All Assets Measured At Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3)
 
Natural Gas Exchange Agreement
 
Power Exchange Agreement
 
Power Option Agreement
 
Total
Three months ended June 30, 2018:
 
 
 
 
 
 
 
Balance as of April 1, 2018
$
(2,805
)
 
$
(10,163
)
 
$
(5
)
 
$
(12,973
)
Total gains or (losses):
 
 
 
 
 
 
 
Included in regulatory assets/liabilities (1)
(768
)
 
2,597

 
—

 
1,829

Settlements
93

 
1,221

 
—

 
1,314

Ending balance as of June 30, 2018 (2)
$
(3,480
)
 
$
(6,345
)
 
$
(5
)
 
$
(9,830
)
Three months ended June 30, 2017:
 
 
 
 
 
 
 
Balance as of April 1, 2017
$
(4,278
)
 
$
(14,419
)
 
$
(266
)
 
$
(18,963
)
Total gains or (losses):
 
 
 
 
 
 
 
Included in regulatory assets/liabilities (1)
(195
)
 
(672
)
 
223

 
(644
)
Settlements
300

 
1,307

 
—

 
1,607

Ending balance as of June 30, 2017 (2)
$
(4,173
)
 
$
(13,784
)
 
$
(43
)
 
$
(18,000
)
Six months ended June 30, 2018:
 
 
 
 
 
 
 
Balance as of January 1, 2018
$
(3,164
)
 
$
(13,245
)
 
$
(19
)
 
$
(16,428
)
Total gains or (losses) (realized/unrealized):
 
 
 
 
 
 
 
Included in regulatory assets/liabilities (1)
(565
)
 
720

 
14

 
169

Settlements
249

 
6,180

 
—

 
6,429

Ending balance as of June 30, 2018 (2)
$
(3,480
)
 
$
(6,345
)
 
$
(5
)
 
$
(9,830
)
 
 
 
 
 
 
 
 
Six months ended June 30, 2017:
 
 
 
 
 
 
 
Balance as of January 1, 2017
$
(5,885
)
 
$
(13,449
)
 
$
(76
)
 
$
(19,410
)
Total gains or (losses) (realized/unrealized):
 
 
 
 
 
 
 
Included in regulatory assets/liabilities (1)
1,817

 
(5,165
)
 
33

 
(3,315
)
Settlements
(105
)
 
4,830

 
—

 
4,725

Ending balance as of June 30, 2017 (2)
$
(4,173
)
 
$
(13,784
)
 
$
(43
)
 
$
(18,000
)
 
 
 
 
 
 
 
 

(1)
All gains and losses are included in other regulatory assets and liabilities. There were no gains and losses included in either net income or other comprehensive income during any of the periods presented in the table above.
(2)
There were no purchases, issuances or transfers from other categories of any derivatives instruments during the periods presented in the table above.