NOTE 5 - FINANCIAL INSTRUMENTS

The estimated fair value of financial instruments at March 31 follows (dollars in thousands):

	March 31, 2012				December 31, 2011
		Carrying Amount		Fair Value		Carrying Amount		Fair Value
Power contract derivative assets (includes current portion)	$	13	$	13	$	4	$	4
Power contract derivative liabilities (includes current portion)	$	8,955	$	8,955	$	4,940	$	4,940

Long-term debt (level 2):
First mortgage bonds (includes current portion)	$	187,500	$	234,952	$	187,500	$	239,026
Industrial/Economic Development bonds	$	40,800	$	44,485	$	40,800	$	42,691
Credit facility borrowings	$	148	$	148	$	12,278	$	12,278

At March 31, 2012, our power-related derivatives consisted of FTRs and forward energy contracts. Related unrealized losses of $9 million were recorded as other deferred charges - regulatory on the Consolidated Balance Sheet and there were no related unrealized gains. At December 31, 2011, our power-related derivatives consisted of FTRs and forward energy contracts. Related unrealized losses of $4.9 million were recorded as other deferred charges - regulatory on the Consolidated Balance Sheet and there were no related unrealized gains. For a discussion of the valuation techniques used for power contract derivatives see Note 6 - Fair Value.

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.