Fair Value (Tables)

9 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

Schedule of 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, 2022 and December 31, 2021 (dollars in thousands):

	September 30, 2022				December 31, 2021
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Long-term debt (Level 2)	$	1,113,500	$	967,695	$	963,500	$	1,157,651
Long-term debt (Level 3)		1,200,000		890,658		1,200,000		1,366,619
Snettisham finance lease obligation (Level 3)		46,501		41,800		48,815		54,000
Long-term debt to affiliated trusts (Level 3)		51,547		40,908		51,547		43,299

Schedule of Fair Value of Assets and Liabilities Measured on Recurring Basis

The following table discloses by level within the fair value hierarchy the Company’s assets and liabilities measured and reported on the Condensed Consolidated Balance Sheets as of September 30, 2022 and December 31, 2021 at fair value on a recurring basis (dollars in thousands):

	Level 1		Level 2		Level 3		Counterparty and Cash Collateral Netting (1)			Total
September 30, 2022
Assets:
Energy commodity derivatives	$	—	$	95,579	$	—	$	(88,200	)	$	7,379
Level 3 energy commodity derivatives:
Natural gas exchange agreement		—		—		375		(375	)		—
Interest rate swap derivatives		—		10,384		—		—			10,384
Deferred compensation assets:
Mutual Funds:
Fixed income securities (2)		1,381		—		—		—			1,381
Equity securities (2)		6,076		—		—		—			6,076
Total	$	7,457	$	105,963	$	375	$	(88,575	)	$	25,220
Liabilities:
Energy commodity derivatives	$	—	$	101,311	$	—	$	(100,703	)	$	608
Level 3 energy commodity derivatives:
Natural gas exchange agreement		—		—		7,215		(375	)		6,840
Foreign currency exchange derivatives		—		221		—		—			221
Total	$	—	$	101,532	$	7,215	$	(101,078	)	$	7,669
December 31, 2021
Assets:
Energy commodity derivatives	$	—	$	34,119	$	—	$	(31,211	)	$	2,908
Level 3 energy commodity derivatives:
Natural gas exchange agreement		—		—		143		(143	)		—
Interest rate swap derivatives		—		2,319		—		(1,170	)		1,149
Deferred compensation assets:
Mutual Funds:
Fixed income securities (2)		1,809		—		—		—			1,809
Equity securities (2)		7,594		—		—		—			7,594
Total	$	9,403	$	36,438	$	143	$	(32,524	)	$	13,460
Liabilities:
Energy commodity derivatives	$	—	$	41,733	$	—	$	(40,300	)	$	1,433
Level 3 energy commodity derivatives:
Natural gas exchange agreement		—		—		7,914		(143	)		7,771
Foreign currency exchange derivatives		—		19		—		-			19
Interest rate swap derivatives		—		25,274		—		(1,170	)		24,104
Total	$	—	$	67,026	$	7,914	$	(41,613	)	$	33,327

(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 included in other property and investments-net and other non-current assets on the Condensed Consolidated Balance Sheets.

Schedule of Quantitative Information

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 September 30, 2022 (dollars in thousands):

	Fair Value (Net) at			Valuation	Unobservable	Range and Weighted
	September 30, 2022			Technique	Input	Average Price
Natural gas exchange agreement	$	(6,840	)	Internally derived weighted average cost of gas	Forward purchase prices	$3.37 - $4.56/mmBTU $3.92 Weighted Average
					Forward sales prices	$3.48 - $9.06/mmBTU $6.23 Weighted Average
					Purchase volumes	130,000 - 310,000 mmBTUs
					Sales volumes	75,000 - 310,000 mmBTUs

Schedule of Activity for Natural Gas Exchange Agreement Derivative Assets (Liabilities) Measured At Fair Value Using Significant Unobservable Inputs (Level 3)

The following table presents activity for the natural gas exchange agreement derivative assets (liabilities) measured at fair value using significant unobservable inputs (Level 3) for the three and nine months ended September 30 (dollars in thousands):

	Three Months Ended September 30:						Nine Months Ended September 30:
	2022			2021			2022			2021
Beginning balance	$	(2,289	)	$	(6,078	)	$	(7,771	)	$	(8,410	)
Total gains (realized/unrealized):
Included in regulatory assets/liabilities (1)		(4,551	)		(4,971	)		3,144			(1,482	)
Settlements		—			—			(2,213	)		(1,157	)
Ending balance (2)	$	(6,840	)	$	(11,049	)	$	(6,840	)	$	(11,049	)

(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.