DERIVATIVE INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair value of derivative instruments

The fair values of all derivative instruments, as reflected in the condensed balance sheets as of September 30, 2016 and December 31, 2015, are as follows (in thousands):

Derivatives not designated as hedging instruments under GAAP	September 30, 2016				December 31, 2015
	Assets		Liabilities		Assets		Liabilities
Energy related commodity contracts:
Derivatives – Energy Related – Current	$	2,281	$	3,276	$	1,077	$	5,489
Derivatives – Energy Related – Non-Current	281		73		64		351
Interest rate contracts:
Derivatives – Other Current	—		535		—		—
Derivatives – Other Noncurrent	—		9,811		—		7,631
Total derivatives not designated as hedging instruments under GAAP	2,562		13,695		1,141		13,471
Total Derivatives	$	2,562	$	13,695	$	1,141	$	13,471

Offsetting assets

As of September 30, 2016, and December 31, 2015, information related to these offsetting arrangements were as follows (in thousands):

As of September 30, 2016:
Description	Gross amounts of recognized assets/liabilities			Gross amount offset in the balance sheet		Net amounts of assets/liabilities in balance sheet			Gross amounts not offset in the balance sheet							Net amount
									Financial Instruments				Cash Collateral Posted
Derivatives - Energy Related Assets	$	2,562		$	—	$	2,562		$	(582	)	(A)	$	(339	)	$	1,641
Derivatives - Energy Related Liabilities	(3,349		)	—		(3,349		)	582			(B)	—			(2,767		)
Derivatives - Other	(10,346		)	—		(10,346		)	—				—			(10,346		)

As of December 31, 2015:
Description	Gross amounts of recognized assets/liabilities			Gross amount offset in the balance sheet		Net amounts of assets/liabilities in balance sheet			Gross amounts not offset in the balance sheet						Net amount
									Financial Instruments				Cash Collateral Posted
Derivatives - Energy Related Assets	$	1,141		$	—	$	1,141		$	(399	)	(A)	$	—	$	742
Derivatives - Energy Related Liabilities	(5,840		)	—		(5,840		)	399			(B)	5,025		(416		)
Derivatives - Other	(7,631		)	—		(7,631		)	—				—		(7,631		)

(A) The balances at September 30, 2016 and December 31, 2015 were related to derivative liabilities which can be net settled against derivative assets.

(B) The balances at September 30, 2016 and December 31, 2015 were related to derivative assets which can be net settled against derivative liabilities.

Offsetting liabilities

As of September 30, 2016, and December 31, 2015, information related to these offsetting arrangements were as follows (in thousands):

As of September 30, 2016:
Description	Gross amounts of recognized assets/liabilities			Gross amount offset in the balance sheet		Net amounts of assets/liabilities in balance sheet			Gross amounts not offset in the balance sheet							Net amount
									Financial Instruments				Cash Collateral Posted
Derivatives - Energy Related Assets	$	2,562		$	—	$	2,562		$	(582	)	(A)	$	(339	)	$	1,641
Derivatives - Energy Related Liabilities	(3,349		)	—		(3,349		)	582			(B)	—			(2,767		)
Derivatives - Other	(10,346		)	—		(10,346		)	—				—			(10,346		)

As of December 31, 2015:
Description	Gross amounts of recognized assets/liabilities			Gross amount offset in the balance sheet		Net amounts of assets/liabilities in balance sheet			Gross amounts not offset in the balance sheet						Net amount
									Financial Instruments				Cash Collateral Posted
Derivatives - Energy Related Assets	$	1,141		$	—	$	1,141		$	(399	)	(A)	$	—	$	742
Derivatives - Energy Related Liabilities	(5,840		)	—		(5,840		)	399			(B)	5,025		(416		)
Derivatives - Other	(7,631		)	—		(7,631		)	—				—		(7,631		)

(A) The balances at September 30, 2016 and December 31, 2015 were related to derivative liabilities which can be net settled against derivative assets.

(B) The balances at September 30, 2016 and December 31, 2015 were related to derivative assets which can be net settled against derivative liabilities.

Derivatives in cash flow hedging relationships

The effect of derivative instruments on the condensed statements of income for the three and nine months ended September 30, 2016 and 2015 are as follows (in thousands):

	Three months ended September 30,				Nine months ended September 30,
Derivatives in Cash Flow Hedging Relationships	2016		2015		2016		2015
Interest Rate Contracts:
Gains reclassified from Accumulated Other Comprehensive Loss into income (a)	$	12	$	12	$	36	$	36

(a) Included in Interest Charges