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DERIVATIVE INSTRUMENTS
 3 Months Ended
Mar. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE INSTRUMENTS DERIVATIVE INSTRUMENTS

We use derivatives as part of our risk management program to manage the risks associated with the price volatility of purchased power, generation, and natural gas costs for the benefit of our customers. Our approach is non-speculative and designed to mitigate risk. Our regulated hedging programs are approved by the PSCW.

We record derivative instruments on our balance sheets as an asset or liability measured at fair value unless they qualify for the normal purchases and sales exception and are so designated. We continually assess our contracts designated as normal and will discontinue the treatment of these contracts as normal if the required criteria are no longer met. Changes in the derivative's fair value are recognized currently in earnings unless specific hedge accounting criteria are met or we receive regulatory treatment for the derivative. For most energy-related physical and financial contracts in our regulated operations that qualify as derivatives, the PSCW allows the effects of fair value accounting to be offset to regulatory assets and liabilities.

The following table shows our derivative assets and derivative liabilities, along with their classification on our balance sheets. None of our derivatives are designated as hedging instruments.
 
 
March 31, 2020
 
December 31, 2019
(in millions)
 
Derivative Assets
 
Derivative Liabilities
 
Derivative Assets
 
Derivative Liabilities
Other current
 
 
 
 
 
 
 
 
Natural gas contracts
 
$
0.6

 
$
5.9

 
$
0.4

 
$
5.1

FTRs
 
0.4

 
—

 
1.5

 
—

Coal contracts
 
—

 
0.1

 
—

 
0.2

Total other current *
 
1.0

 
6.0

 
1.9

 
5.3

 
 
 
 
 
 
 
 
 
Other long-term
 
 
 
 
 
 
 
 
Natural gas contracts
 
0.3

 
—

 
—

 
0.1

Coal contracts
 
—

 
—

 
0.1

 
—

Total other long-term *
 
0.3

 
—

 
0.1

 
0.1

Total
 
$
1.3

 
$
6.0

 
$
2.0

 
$
5.4


*
On our balance sheets, we classify derivative assets and liabilities as other current or other long-term based on the maturities of the underlying contracts.

Realized gains (losses) on derivatives are primarily recorded in cost of sales on the income statements. Our estimated notional sales volumes and realized gains (losses) were as follows:
 
 
Three Months Ended March 31, 2020
 
Three Months Ended March 31, 2019
(in millions)
 
Volumes
 
Gains (Losses)
 
Volumes
 
Gains (Losses)
Natural gas contracts
 
19.1 Dth
 
$
(6.9
)
 
18.1 Dth
 
$
(1.4
)
FTRs
 
5.1 MWh
 
0.8

 
5.5 MWh
 
1.6

Total
 
 
 
$
(6.1
)
 
 
 
$
0.2


On our balance sheets, the amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral are not offset against the fair value amounts recognized for derivative instruments executed with the same counterparty under the same master netting arrangement. At March 31, 2020 and December 31, 2019, we had posted cash collateral of $7.6 million and $8.5 million, respectively, in our margin accounts. These amounts were recorded on our balance sheets in other current assets.

The following table shows derivative assets and derivative liabilities if derivative instruments by counterparty were presented net on our balance sheets:
 
 
March 31, 2020
 
December 31, 2019
(in millions)
 
Derivative Assets
 
Derivative Liabilities
 
Derivative Assets
 
Derivative Liabilities
 
Gross amount recognized on the balance sheet
 
$
1.3

 
$
6.0

 
$
2.0

 
$
5.4

 
Gross amount not offset on the balance sheet
 
(0.9
)
 
(5.9
)
(1) 
(0.4
)
 
(5.2
)
(2) 
Net amount
 
$
0.4

 
$
0.1

 
$
1.6

 
$
0.2

 

(1)  
Includes cash collateral posted of $5.0 million.

(2) 
Includes cash collateral posted of $4.8 million.