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Fair Value (Tables)
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9 Months Ended |
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Sep. 30, 2014
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| Fair Value Inputs, Liabilities, Quantitative Information [Line Items] |
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| Fair Value Inputs, Liabilities, Quantitative Information [Table Text Block] |
| | | | | | | | | | | | | | Fair Value (Net) at | | | | | | | | | September 30, 2014 | | Valuation Technique | | Unobservable Input | | Range | Power exchange agreement | | $ | (12,854 | ) | | Surrogate facility pricing | | O&M charges | | $30.66-$55.56/MWh (1) | | | | | Escalation factor | | 3% - 2014 to 2019 | | | | | Transaction volumes | | 310,103 - 397,116 MWhs | Power option agreement
| | (362 | ) | | Black-Scholes- Merton | | Strike price | | $56.20/MWh - 2015 | | | | | | $67.81/MWh - 2019 | | | | | Delivery volumes | | 32,472 - 287,147 MWhs | | | | | Volatility rates | | 0.20 (2) | Natural gas exchange agreement | | (1,471 | ) | | Internally derived
weighted average
cost of gas | | Forward purchase prices | | $3.43 - $3.68/mmBTU | | | | | | | | | | Forward sales prices | | $4.19 - $4.72/mmBTU | | | | | Purchase volumes | | 280,000 - 310,000 mmBTUs | | | | | Sales volumes | | 279,990 - 310,000 mmBTUs |
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| 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 September 30, 2014 and December 31, 2013 (dollars in thousands): | | | | | | | | | | | | | | | | | | September 30, 2014 | | December 31, 2013 | | Carrying Value | | Estimated Fair Value | | Carrying Value | | Estimated Fair Value | Long-term debt (Level 2) | $ | 951,000 |
| | $ | 1,100,345 |
| | $ | 951,000 |
| | $ | 1,054,512 |
| Long-term debt (Level 3) | 417,000 |
| | 431,758 |
| | 342,000 |
| | 329,581 |
| Snettisham capital lease obligation (Level 3) | 70,481 |
| | 77,835 |
| | — |
| | — |
| Nonrecourse long-term debt (Level 3) | 5,666 |
| | 5,756 |
| | 17,838 |
| | 18,636 |
| Long-term debt to affiliated trusts (Level 3) | 51,547 |
| | 38,583 |
| | 51,547 |
| | 37,114 |
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| Fair Value of Assets And Liabilities Measured on Recurring Basis |
| | | | | | | | | | | | | | | | | | | | | | Level 1 | | Level 2 | | Level 3 | | Counterparty
and Cash
Collateral
Netting (1) | | Total | September 30, 2014 | | | | | | | | | | Assets: | | | | | | | | | | Energy commodity derivatives | $ | — |
| | $ | 52,691 |
| | $ | — |
| | $ | (47,664 | ) | | $ | 5,027 |
| Level 3 energy commodity derivatives: | | | | | | | | | | Natural gas exchange agreement | — |
| | — |
| | 58 |
| | (58 | ) | | — |
| Power exchange agreement | — |
| | — |
| | 800 |
| | (800 | ) | | — |
| Interest rate swaps | — |
| | 13,300 |
| | — |
| | (5,047 | ) | | 8,253 |
| Funds held in trust account of Spokane Energy | 1,600 |
| | — |
| | — |
| | — |
| | 1,600 |
| Deferred compensation assets: | | | | | | | | | | Fixed income securities (2) | 1,831 |
| | — |
| | — |
| | — |
| | 1,831 |
| Equity securities (2) | 6,096 |
| | — |
| | — |
| | — |
| | 6,096 |
| Total | $ | 9,527 |
| | $ | 65,991 |
| | $ | 858 |
| | $ | (53,569 | ) | | $ | 22,807 |
| Liabilities: | | | | | | | | | | Energy commodity derivatives | $ | — |
| | $ | 52,881 |
| | $ | — |
| | $ | (48,599 | ) | | $ | 4,282 |
| Level 3 energy commodity derivatives: | | | | | | | | | | Natural gas exchange agreement | — |
| | — |
| | 1,529 |
| | (58 | ) | | 1,471 |
| Power exchange agreement | — |
| | — |
| | 13,654 |
| | (800 | ) | | 12,854 |
| Power option agreement | — |
| | — |
| | 362 |
| | — |
| | 362 |
| Foreign currency derivatives | — |
| | 280 |
| | — |
| | — |
| | 280 |
| Interest rate swaps | — |
| | 34,485 |
| | — |
| | (17,777 | ) | | 16,708 |
| Total | $ | — |
| | $ | 87,646 |
| | $ | 15,545 |
| | $ | (67,234 | ) | | $ | 35,957 |
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| | | | | | | | | | | | | | | | | | | | | | Level 1 | | Level 2 | | Level 3 | | Counterparty
and Cash
Collateral
Netting (1) | | Total | December 31, 2013 | | | | | | | | | | Assets: | | | | | | | | | | Energy commodity derivatives | $ | — |
| | $ | 55,243 |
| | $ | — |
| | $ | (51,367 | ) | | $ | 3,876 |
| Level 3 energy commodity derivatives: | | | | | | | | | | Power exchange agreement | — |
| | — |
| | 339 |
| | (339 | ) | | — |
| Foreign currency derivatives | — |
| | 7 |
| | — |
| | (6 | ) | | 1 |
| Interest rate swaps | — |
| | 33,543 |
| | — |
| | — |
| | 33,543 |
| Investments and funds held for clients: | | | | | | | | | | Money market funds | 11,180 |
| | — |
| | — |
| | — |
| | 11,180 |
| Securities available for sale: | | | | | | | | | | U.S. government agency | — |
| | 61,078 |
| | — |
| | — |
| | 61,078 |
| Municipal | — |
| | 3,518 |
| | — |
| | — |
| | 3,518 |
| Corporate fixed income – financial | — |
| | 3,000 |
| | — |
| | — |
| | 3,000 |
| Corporate fixed income – industrial | — |
| | 765 |
| | — |
| | — |
| | 765 |
| Certificate of deposits | — |
| | 1,000 |
| | — |
| | — |
| | 1,000 |
| Funds held in trust account of Spokane Energy | 1,600 |
| | — |
| | — |
| | — |
| | 1,600 |
| Deferred compensation assets: | | | | | | | | | | Fixed income securities (2) | 1,960 |
| | — |
| | — |
| | — |
| | 1,960 |
| Equity securities (2) | 6,470 |
| | — |
| | — |
| | — |
| | 6,470 |
| Total | $ | 21,210 |
| | $ | 158,154 |
| | $ | 339 |
| | $ | (51,712 | ) | | $ | 127,991 |
| Liabilities: | | | | | | | | | | Energy commodity derivatives | $ | — |
| | $ | 72,895 |
| | $ | — |
| | $ | (60,099 | ) | | $ | 12,796 |
| Level 3 energy commodity derivatives: | | | | | | | | | | Natural gas exchange agreement | — |
| | — |
| | 1,219 |
| | — |
| | 1,219 |
| Power exchange agreement | — |
| | — |
| | 14,780 |
| | (339 | ) | | 14,441 |
| Power option agreement | — |
| | — |
| | 775 |
| | — |
| | 775 |
| Foreign currency derivatives | — |
| | 6 |
| | — |
| | (6 | ) | | — |
| Total | $ | — |
| | $ | 72,901 |
| | $ | 16,774 |
| | $ | (60,444 | ) | | $ | 29,231 |
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| | (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 on the Condensed Consolidated Balance Sheets. |
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| 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 September 30, 2014: | | | | | | | | Balance as of July 1, 2014 | $ | (2,183 | ) | | $ | (7,919 | ) | | $ | (605 | ) | | $ | (10,707 | ) | Total gains or losses (realized/unrealized): | | | | | | | | Included in net income | — |
| | — |
| | — |
| | — |
| Included in other comprehensive income | — |
| | — |
| | — |
| | — |
| Included in regulatory assets/liabilities (1) | 712 |
| | (4,935 | ) | | 243 |
| | (3,980 | ) | Purchases | — |
| | — |
| | — |
| | — |
| Issuance | — |
| | — |
| | — |
| | — |
| Settlements | — |
| | — |
| | — |
| | — |
| Transfers to/from other categories | — |
| | — |
| | — |
| | — |
| Ending balance as of September 30, 2014 | $ | (1,471 | ) | | $ | (12,854 | ) | | $ | (362 | ) | | $ | (14,687 | ) | Three months ended September 30, 2013: | | | | | | | | Balance as of July 1, 2013 | $ | (1,022 | ) | | $ | (22,179 | ) | | $ | (596 | ) | | $ | (23,797 | ) | Total gains or losses (realized/unrealized): | | | | | | | | Included in net income | — |
| | — |
| | — |
| | — |
| Included in other comprehensive income | — |
| | — |
| | — |
| | — |
| Included in regulatory assets/liabilities (1) | (170 | ) | | 6,135 |
| | (165 | ) | | 5,800 |
| Purchases | — |
| | — |
| | — |
| | — |
| Issuance | — |
| | — |
| | — |
| | — |
| Settlements | (1 | ) | | — |
| | — |
| | (1 | ) | Transfers to/from other categories | — |
| | — |
| | — |
| | — |
| Ending balance as of September 30, 2013 | $ | (1,193 | ) | | $ | (16,044 | ) | | $ | (761 | ) | | $ | (17,998 | ) | Nine months ended September 30, 2014: | | | | | | | | Balance as of January 1, 2014 | $ | (1,219 | ) | | $ | (14,441 | ) | | $ | (775 | ) | | $ | (16,435 | ) | Total gains or losses (realized/unrealized): | | | | | | | | Included in net income | — |
| | — |
| | — |
| | — |
| Included in other comprehensive income | — |
| | — |
| | — |
| | — |
| Included in regulatory assets/liabilities (1) | 2,796 |
| | 2,120 |
| | 413 |
| | 5,329 |
| Purchases | — |
| | — |
| | — |
| | — |
| Issuance | — |
| | — |
| | — |
| | — |
| Settlements | (3,048 | ) | | (533 | ) | | — |
| | (3,581 | ) | Transfers to/from other categories | — |
| | — |
| | — |
| | — |
| Ending balance as of September 30, 2014 | $ | (1,471 | ) | | $ | (12,854 | ) | | $ | (362 | ) | | $ | (14,687 | ) | | | | | | | | |
| | | | | | | | | | | | | | | | | | Natural Gas Exchange Agreement | | Power Exchange Agreement | | Power Option Agreement | | Total | Nine months ended September 30, 2013: | | | | | | | | Balance as of January 1, 2013 | $ | (2,379 | ) | | $ | (18,692 | ) | | $ | (1,480 | ) | | $ | (22,551 | ) | Total gains or losses (realized/unrealized): | | | | | | | | Included in net income | — |
| | — |
| | — |
| | — |
| Included in other comprehensive income | — |
| | — |
| | — |
| | — |
| Included in regulatory assets/liabilities (1) | 1,637 |
| | (113 | ) | | 719 |
| | 2,243 |
| Purchases | — |
| | — |
| | — |
| | — |
| Issuance | — |
| | — |
| | — |
| | — |
| Settlements | (451 | ) | | 2,761 |
| | — |
| | 2,310 |
| Transfers from other categories | — |
| | — |
| | — |
| | — |
| Ending balance as of September 30, 2013 | $ | (1,193 | ) | | $ | (16,044 | ) | | $ | (761 | ) | | $ | (17,998 | ) | | | | | | | | |
| | (1) | The UTC and the IPUC issued accounting orders authorizing Avista Corp. to offset commodity derivative assets or liabilities with a regulatory asset or liability. This accounting treatment defers the recognition of mark-to-market gains and losses on energy commodity transactions until the period of delivery. The orders provide for Avista Corp. to not recognize the unrealized gain or loss on utility derivative commodity instruments in the Condensed Consolidated Statements of Income. Realized gains or losses are recognized in the period of delivery, subject to approval for recovery through retail rates. Realized gains and losses, subject to regulatory approval, result in adjustments to retail rates through purchased gas cost adjustments, the ERM in Washington, the PCA mechanism in Idaho, and periodic general rates cases. |
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