DERIVATIVE FINANCIAL INSTRUMENTS: Level 3 (Tables)

9 Months Ended

Sep. 30, 2023

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 months and nine months ended September 30, 2023 and 2022 (in thousands of dollars):

		Gain/(Loss) on Derivatives Recognized in Income(1)
	Location of Realized Gain/(Loss) on Derivatives Recognized in Income	Three months ended September 30,				Nine months ended September 30,
		2023		2022		2023		2022
Financial swaps	Operating revenues	$	253	$	(3,763)	$	4,216	$	(4,758)
Financial swaps	Purchased power	(8,541)		3,038		(8,647)		1,957
Financial swaps	Fuel expense	(7,932)		24,178		4,182		28,629
Forward contracts	Operating revenues	—		502		1,710		713
Forward contracts	Purchased power	(1,454)		(2,430)		(3,504)		(2,640)
Forward contracts	Fuel expense	(202)		(207)		(641)		(269)

(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 September 30, 2023, and December 31, 2022 (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
September 30, 2023
Current:
Financial swaps	Other current assets	$	811	$	(315)		$	496	$	315	$	(315)		$	—
Financial swaps	Other current liabilities	2,668		(2,668)			—		22,108		(21,778)		(1)	330
Forward contracts	Other current liabilities	—		—			—		1,808		—			1,808
Long-term:
Financial swaps	Other assets	141		(90)			51		90		(90)			—
Financial swaps	Other liabilities	522		(522)			—		632		(632)		(2)	—
Total		$	4,142	$	(3,595)		$	547	$	24,953	$	(22,815)		$	2,138
December 31, 2022
Current:
Financial swaps	Other current assets	$	72,548	$	(32,609)	(3)	$	39,939	$	13,982	$	(13,982)		$	—
Financial swaps	Other current liabilities	132		(132)			—		1,577		(132)			1,445
Forward contracts	Other current assets	400		—			400		—		—			—
Forward contracts	Other current liabilities	—		—			—		2,071		—			2,071
Long-term:
Financial swaps	Other assets	622		(43)			579		43		(43)			—
Financial swaps	Other liabilities	644		(644)			—		2,136		(644)			1,492
Forward contracts	Other liabilities	—		—			—		1,780		—			1,780
Total		$	74,346	$	(33,428)		$	40,918	$	21,589	$	(14,801)		$	6,788

(1) Current liability derivative amounts offset include $19.1 million of collateral receivable at September 30, 2023.

(2) Long-term liability derivative amounts offset include $110 thousand of collateral receivable at September 30, 2023.

(3) Current asset derivative amounts offset include $18.6 million of collateral payable at December 31, 2022.

Schedule of Derivative Instruments

The table below presents the volumes of derivative commodity forward contracts and swaps outstanding at September 30, 2023 and 2022 (in thousands of units):

		September 30,
Commodity	Units	2023	2022
Electricity purchases	MWh	434	344
Electricity sales	MWh	—	72
Natural gas purchases	MMBtu	27,283	14,958