Derivative Instruments and Hedging Activities

6 Months Ended

Jun. 30, 2021

Derivative Instruments and Hedging Activities Disclosures [Line Items]

Derivative Instruments and Hedging Activities

Derivative Instruments and Hedging Activities

For further information on our derivative and hedge accounting policies, See Note 1 – Overview and Summary of Significant Accounting Policies – Financial Derivatives and Note 6 - Derivative Instruments and Hedging Activities of Item 8 – Financial Statements and Supplementary Data in our Form 10-K.

Cash Flow Hedges

In August 2020, the two interest rate swaps to hedge the variable interest on the $140.0 million variable interest rate tax-exempt First Mortgage Bonds expired, as the associated debt reached maturity. The interest rate swaps had a combined notional amount of $140.0 million and settled monthly based on a one-month LIBOR. The AOCL associated with the swaps was amortized out of AOCL into interest expense over the life of the underlying debt.

We also had previously entered into interest rate derivative contracts to manage interest rate exposure related to anticipated borrowings of fixed-rate debt. These interest rate derivative contracts were settled in 2013 and we continue to amortize amounts out of AOCL into interest expense.

The following tables provide information concerning gains or losses recognized in AOCL for the cash flow hedges for the three and six months ended June 30, 2021 and 2020:

	Three months ended				Six months ended
	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
	Interest		Interest		Interest		Interest
$ in millions (net of tax)	Rate Hedge		Rate Hedge		Rate Hedge		Rate Hedge
Beginning accumulated derivative gains in AOCL	$	13.4	$	13.9	$	13.6	$	14.5
Net gains / (losses) associated with current period hedging transactions	—		0.2		—		(0.1)
Net gains reclassified to earnings
Interest expense	(0.2)		(0.2)		(0.4)		(0.5)
Ending accumulated derivative gains in AOCL	$	13.2	$	13.9	$	13.2	$	13.9
Portion expected to be reclassified to earnings in the next twelve months	$	(0.8)

Subsidiaries [Member]

Derivative Instruments and Hedging Activities Disclosures [Line Items]

Derivative Instruments and Hedging Activities

Derivative Instruments and Hedging Activities

For further information on our derivative and hedge accounting policies, See Note 1 – Overview and Summary of Significant Accounting Policies – Financial Derivatives and Note 6 - Derivative Instruments and Hedging Activities of Item 8 – Financial Statements and Supplementary Data in our Form 10-K.

Cash Flow Hedges

In August 2020, the two interest rate swaps to hedge the variable interest on the $140.0 million variable interest rate tax-exempt First Mortgage Bonds expired, as the associated debt reached maturity. The interest rate swaps had a combined notional amount of $140.0 million and settled monthly based on a one-month LIBOR. The AOCL associated with the swaps was amortized out of AOCL into interest expense over the life of the underlying debt.

The following tables provide information concerning gains or losses recognized in AOCL for the cash flow hedges for the three and six months ended June 30, 2020:

	Three months ended		Six months ended
	June 30, 2020		June 30, 2020
	Interest		Interest
$ in millions (net of tax)	Rate Hedge		Rate Hedge
Beginning accumulated derivative losses in AOCL	$	(0.8)	$	(0.4)
Net gains / (losses) associated with current period hedging transactions	0.2		(0.1)
Net gains reclassified to earnings
Interest expense	(0.1)		(0.2)
Ending accumulated derivative losses in AOCL	$	(0.7)	$	(0.7)