RISK MANAGEMENT ACTIVITIES

3 Months Ended

Mar. 31, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

RISK MANAGEMENT ACTIVITIES

Risk Management Activities

We use derivative instruments to manage commodity costs. None of these derivatives are designated as hedges for accounting purposes. The electric and natural gas utility segments use physical commodity contracts and financial contracts to manage the risks associated with the market price volatility of natural gas costs. The electric utility segment also uses financial derivative contracts to reduce price risk related to coal transportation costs and financial transmission rights (FTRs) to manage electric transmission congestion costs.

The tables below show our assets and liabilities from risk management activities:

		March 31, 2014
(Millions)	Balance Sheet Presentation *	Assets		Liabilities
Natural gas contracts	Other Current	$	0.6	$	0.1
FTRs	Other Current	0.7		0.2
Petroleum product contracts	Other Current	0.1		—
Coal contracts	Other Current	—		1.1
Coal contracts	Other Long-term	1.8		0.4
	Other Current	1.4		1.4
	Other Long-term	1.8		0.4
Total		$	3.2	$	1.8

* We classify assets and liabilities from risk management activities as current or long-term based upon the maturities of the underlying contracts.

		December 31, 2013
(Millions)	Balance Sheet Presentation *	Assets		Liabilities
Natural gas contracts	Other Current	$	0.6	$	0.1
FTRs	Other Current	1.5		0.3
Petroleum product contracts	Other Current	0.1		—
Coal contracts	Other Current	—		1.9
Coal contracts	Other Long-term	0.2		0.8
	Other Current	2.2		2.3
	Other Long-term	0.2		0.8
Total		$	2.4	$	3.1

* We classify assets and liabilities from risk management activities as current or long-term based upon the maturities of the underlying contracts.

The following tables show the potential effect on our financial position of netting arrangements for recognized derivative assets and liabilities:

	March 31, 2014
(Millions)	Gross Amount		Potential Effects of Netting, Including Cash Collateral		Net Amount
Derivative assets subject to master netting or similar arrangements	$	1.4	$	0.3	$	1.1
Derivative assets not subject to master netting or similar arrangements	1.8				1.8
Total risk management assets	$	3.2			$	2.9
Derivative liabilities subject to master netting or similar arrangements	$	0.3	$	0.3	$	—
Derivative liabilities not subject to master netting or similar arrangements	1.5				1.5
Total risk management liabilities	$	1.8			$	1.5

	December 31, 2013
(Millions)	Gross Amount		Potential Effects of Netting, Including Cash Collateral		Net Amount
Derivative assets subject to master netting or similar arrangements	$	2.2	$	0.6	$	1.6
Derivative assets not subject to master netting or similar arrangements	0.2				0.2
Total risk management assets	$	2.4			$	1.8
Derivative liabilities subject to master netting or similar arrangements	$	0.4	$	0.4	$	—
Derivative liabilities not subject to master netting or similar arrangements	2.7				2.7
Total risk management liabilities	$	3.1			$	2.7

Our master netting and similar arrangements have conditional rights of setoff that can be enforced under a variety of situations, including counterparty default or credit rating downgrade below investment grade. We have trade receivables and trade payables, subject to master netting or similar arrangements, that are not included in the above tables. These amounts may offset (or conditionally offset) the net amounts presented in the above tables.

Financial collateral received or provided is restricted to the extent that it is required per the terms of the related agreements. The following table shows our cash collateral positions:

(Millions)	March 31, 2014		December 31, 2013
Cash collateral provided to others related to contracts under master netting or similar arrangements *	$	3.5	$	3.1
Cash collateral received from others related to contracts under master netting or similar arrangements *	—		0.2

* Cash collateral provided to others is reflected in other current assets and cash collateral received from others is reflected in other current liabilities on the balance sheets.

The following table shows the unrealized gains (losses) recorded related to derivative contracts:

		Three Months Ended March 31
(Millions)	Financial Statement Presentation	2014			2013
Natural gas	Balance Sheet — Regulatory assets (current)	$	0.2		$	1.0
Natural gas	Balance Sheet — Regulatory liabilities (current)	0.1			0.8
FTRs	Balance Sheet — Regulatory assets (current)	0.1			0.2
FTRs	Balance Sheet — Regulatory liabilities (current)	(0.1		)	(0.4		)
Coal	Balance Sheet — Regulatory assets (current)	0.2			1.9
Coal	Balance Sheet — Regulatory assets (long-term)	0.4			2.3
Coal	Balance Sheet — Regulatory liabilities (current)	—			(0.2		)
Coal	Balance Sheet — Regulatory liabilities (long-term)	1.6			(2.2		)

We had the following notional volumes of outstanding derivative contracts:

	March 31, 2014			December 31, 2013
Commodity	Purchases	Sales	Other  Transactions	Purchases	Sales	Other Transactions
Natural gas (millions of therms)	1,889.6	—	N/A	2,242.5	7.0	N/A
FTRs (millions of kilowatt-hours)	N/A	N/A	1,373.0	N/A	N/A	3,427.0
Petroleum products (barrels)	78,000.0	20,000.0	N/A	73,002.0	14,000.0	N/A
Coal contract (millions of tons)	4.3	—	N/A	4.8	—	N/A