DERIVATIVE FINANCIAL INSTRUMENTS: Level 3 (Tables)

6 Months Ended

Jun. 30, 2020

Summary of Derivative Instruments [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 three and six months ended June 30, 2020 and 2019 (in thousands).

		Gain/(Loss) on Derivatives Recognized in Income(1)
	Location of Realized Gain/(Loss) on Derivatives Recognized in Income	Three months ended June 30,						Six months ended June 30,
		2020			2019			2020			2019
Financial swaps	Operating revenues	$	308		$	414		$	1,134		$	(2,789	)
Financial swaps	Purchased power	(1,125		)	(56		)	(1,315		)	687
Financial swaps	Fuel expense	(69		)	7			(2,917		)	12,402
Forward contracts	Operating revenues	41			—			120			64
Forward contracts	Purchased power	(39		)	—			(115		)	(64		)
Forward contracts	Fuel expense	(1		)	—			(20		)	416

(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 June 30, 2020, and December 31, 2019 (in thousands).

		Asset Derivatives							Liability Derivatives
	Balance Sheet Location	Gross Fair Value		Amounts Offset			Net Assets		Gross Fair Value		Amounts Offset				Net Liabilities
June 30, 2020
Current:
Financial swaps	Other current assets	$	160	$	—		$	160	$	—	$	—			$	—
Financial swaps	Other current liabilities	1,531		(1,531		)	—		6,658		(4,546		)	(1)	2,112
Forward contracts	Other current liabilities	—		—			—		3		—				3
Long-term:
Financial swaps	Other assets	870		—			870		—		—				—
Financial swaps	Other liabilities	10		(10		)	—		47		(47		)	(2)	—
Total		$	2,571	$	(1,541	)	$	1,030	$	6,708	$	(4,593	)		$	2,115
December 31, 2019
Current:
Financial swaps	Other current assets	$	2,426	$	(2,034	)	$	392	$	2,034	$	(2,034	)		$	—
Financial swaps	Other current liabilities	134		(134		)	—		924		(134		)		790
Forward contracts	Other current assets	13		—			13		—		—				—
Forward contracts	Other current liabilities	—		—			—		32		—				32
Long-term:
Financial swaps	Other assets	3		(3		)	—		27		(3		)		24
Total		$	2,576	$	(2,171	)	$	405	$	3,017	$	(2,171	)		$	846

(1) Current liability derivative amounts offset include $3.0 million of collateral receivable for the period ended June 30, 2020.

(2) Long-term liability derivative amounts offset include $37 thousand of collateral receivable for the period ended June 30, 2020.

Schedule of Derivative Instruments

The table below presents the volumes of derivative commodity forward contracts and swaps outstanding at June 30, 2020 and 2019 (in thousands of units).

		June 30,
Commodity	Units	2020	2019
Electricity purchases	MWh	115	216
Electricity sales	MWh	40	106
Natural gas purchases	MMBtu	12,930	13,980
Natural gas sales	MMBtu	388	308