FINANCIAL INSTRUMENTS

3 Months Ended

Mar. 31, 2011

NOTE 5 - FINANCIAL INSTRUMENTS

The estimated fair value of financial instruments follows (dollars in thousands):

	June 30, 2011				December 31, 2010
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Power contract derivative assets (includes current portion)	$	92	$	92	$	28	$	28

Long-term debt:
First mortgage bonds (includes current portion)	$	187,500	$	212,079	$	167,500	$	188,467
Industrial/Economic Development bonds	$	40,800	$	41,228	$	40,800	$	40,521
Credit facility borrowings	$	0	$	0	$	13,695	$	13,695

At June 30, 2011, our power-related derivatives consisted of FTRs. There were no related unrealized gains or losses in the first six months of 2011 or 2010. For a discussion of the valuation techniques used for power contract derivatives see Note 6 - Fair Value - Power-related Derivatives below.

The fair values of our first mortgage bonds and fixed rate industrial/economic development bonds are estimated based on quoted market prices for the same or similar issues with similar remaining time to maturity or on current rates offered to us. Fair values are estimated to meet disclosure requirements and do not necessarily represent the amounts at which obligations would be settled.

The table above does not include cash, special deposits, receivables and payables as the carrying values of those instruments approximate fair value because of their short duration. The carrying values of our variable rate industrial/economic development bonds approximate fair value since the rates are adjusted at least monthly. The carrying value of our credit facility borrowings approximate fair value since the rates can change daily. The fair value of our cash equivalents and restricted cash are included in Note 6 - Fair Value.