DERIVATIVE FINANCIAL INSTRUMENTS: Derivative Financial Instruments Level 3 (Tables)

12 Months Ended

Dec. 31, 2015

General Discussion of Derivative Instruments and Hedging Activities [Abstract]

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

The table below presents the gains and losses on derivatives not designated as hedging instruments for the years ended December 31, 2015, 2014 and 2013 (in thousands of dollars):

	Location of Realized Gain/(Loss) on Derivatives Recognized in Income	Gain/(Loss) on Derivatives Recognized in Income(1)
		2015			2014			2013
Financial swaps	Off-system sales	$	2,882		$	(4,119	)	$	(2,637	)
Financial swaps	Purchased power	748			(1,416		)	947
Financial swaps	Fuel expense	(6,045		)	3,862			731
Financial swaps	Other operations and maintenance	(50		)	(158		)	35
Forward contracts	Off-system sales	—			277			185
Forward contracts	Purchased power	(6		)	(279		)	(196		)
Forward contracts	Fuel expense	54			94			217

⁽¹⁾ Excludes unrealized gains or losses on derivatives, which are recorded on the balance sheet as regulatory assets or regulatory liabilities.

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The table below presents the fair values and locations of derivative instruments not designated as hedging instruments recorded on the balance sheets and reconciles the gross amounts of derivatives recognized as assets and as liabilities to the net amounts presented in the balance sheets at December 31, 2015 and 2014 (in thousands of dollars):

		Asset Derivatives								Liability Derivatives
	Balance Sheet Location	Gross Fair Value		Amounts Offset				Net Assets		Gross Fair Value		Amounts Offset				Net Liabilities
December 31, 2015
Current:
Financial swaps	Other current assets	$	999	$	(785	)	(1)	$	214	$	785	$	(785	)		$	—
Financial swaps	Other current liabilities	177		(177		)		—		5,146		(177		)		4,969
Forward contracts	Other current assets	64		—				64		—		—				—
Forward contracts	Other current liabilities	—		—				—		3		—				3
Long-term:
Financial swaps	Other assets	148		(22		)		126		22		(22		)		—
Total		$	1,388	$	(984	)		$	404	$	5,956	$	(984	)		$	4,972
December 31, 2014
Current:
Financial swaps	Other current assets	$	2,509	$	(2,002	)		$	507	$	756	$	(756	)		$	—
Financial swaps	Other current liabilities	379		(379		)		—		4,335		(379		)	(1)	3,956
Forward contracts	Other current assets	64		—				64		—		—				—
Forward contracts	Other current liabilities	—		—				—		5		—				5
Long-term:
Forward contracts	Other assets	63		—				63		—		—				—
Total		$	3,015	$	(2,381	)		$	634	$	5,096	$	(1,135	)		$	3,961

⁽¹⁾ Current asset and current liability derivative amounts offset include $0.9 million of collateral receivable and $1.2 million of collateral payable and for the periods ending December 31, 2015 and 2014, respectively.

Schedule of Derivative Instruments

The table below presents the volumes of derivative commodity forward contracts and swaps outstanding at December 31, 2015 and 2014 (in thousands of units):

		December 31,
Commodity	Units	2015	2014
Electricity purchases	MWh	357	115
Electricity sales	MWh	120	238
Natural gas purchases	MMBtu	11,597	6,913
Natural gas sales	MMBtu	78	409
Diesel purchases	Gallons	1,068	243