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Financial Instruments And Investments (Tables)
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3 Months Ended |
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Mar. 31, 2014
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| Financial Instruments And Investments [Abstract] |
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| Fair Values Of Long-Term Debt And Short-Term Borrowings Under the RCF |
Long-Term Debt and Short-Term Borrowings Under the RCF. The fair values of the Company’s long-term debt and short-term borrowings under the RCF are based on estimated market prices for similar issues and are presented below (in thousands): | | | | | | | | | | | | | | | | | | March 31, 2014 | | December 31, 2013 | | Carrying Amount | | Estimated Fair Value | | Carrying Amount | | Estimated Fair Value | Pollution Control Bonds | $ | 193,135 |
| | $ | 202,897 |
| | $ | 193,135 |
| | $ | 193,990 |
| Senior Notes | 696,508 |
| | 744,856 |
| | 696,485 |
| | 734,515 |
| RGRT Senior Notes (1) | 110,000 |
| | 116,560 |
| | 110,000 |
| | 115,850 |
| RCF (1) | 45,951 |
| | 45,951 |
| | 14,352 |
| | 14,352 |
| Total | $ | 1,045,594 |
| | $ | 1,110,264 |
| | $ | 1,013,972 |
| | $ | 1,058,707 |
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| | (1) | Nuclear fuel financing as of March 31, 2014 and December 31, 2013 is funded through the $110 million RGRT Senior Notes and $20.0 million and $14.4 million, respectively under the RCF. As of March 31, 2014, $26.0 million was outstanding under the RCF for working capital or general corporate purposes. As of December 31, 2013, no amount was outstanding under the RCF for working capital or general corporate purposes. The interest rate on the Company’s borrowings under the RCF is reset throughout the quarter reflecting current market rates. Consequently, the carrying value approximates fair value. |
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| Unrecognized Gross Unrealized Gains (Losses) And the Fair Value |
The tables below present the gross unrealized losses and the fair value of these securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | March 31, 2014 | | Less than 12 Months | | 12 Months or Longer | | Total | | Fair Value | | Unrealized Losses | | Fair Value | | Unrealized Losses | | Fair Value | | Unrealized Losses | Description of Securities (1): | | | | | | | | | | | | Federal Agency Mortgage Backed Securities | $ | 4,667 |
| | $ | (28 | ) | | $ | 2,457 |
| | $ | (170 | ) | | $ | 7,124 |
| | $ | (198 | ) | U.S. Government Bonds | 1,548 |
| | (1 | ) | | 16,128 |
| | (893 | ) | | 17,676 |
| | (894 | ) | Municipal Obligations | 6,860 |
| | (101 | ) | | 13,038 |
| | (651 | ) | | 19,898 |
| | (752 | ) | Corporate Obligations | 2,734 |
| | (66 | ) | | 1,299 |
| | (44 | ) | | 4,033 |
| | (110 | ) | Total Debt Securities | 15,809 |
| | (196 | ) | | 32,922 |
| | (1,758 | ) | | 48,731 |
| | (1,954 | ) | Common Stock | 1,614 |
| | (122 | ) | | — |
| | — |
| | 1,614 |
| | (122 | ) | Total Temporarily Impaired Securities | $ | 17,423 |
| | $ | (318 | ) | | $ | 32,922 |
| | $ | (1,758 | ) | | $ | 50,345 |
| | $ | (2,076 | ) |
_________________ | | (1) | Includes approximately 119 securities. |
| | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2013 | | Less than 12 Months | | 12 Months or Longer | | Total | | Fair Value | | Unrealized Losses | | Fair Value | | Unrealized Losses | | Fair Value | | Unrealized Losses | Description of Securities (2): | | | | | | | | | | | | Federal Agency Mortgage Backed Securities | $ | 6,444 |
| | $ | (169 | ) | | $ | 1,421 |
| | $ | (119 | ) | | $ | 7,865 |
| | $ | (288 | ) | U.S. Government Bonds | 8,114 |
| | (245 | ) | | 10,866 |
| | (840 | ) | | 18,980 |
| | (1,085 | ) | Municipal Obligations | 12,286 |
| | (335 | ) | | 7,782 |
| | (479 | ) | | 20,068 |
| | (814 | ) | Corporate Obligations | 3,284 |
| | (96 | ) | | 901 |
| | (54 | ) | | 4,185 |
| | (150 | ) | Total Debt Securities | 30,128 |
| | (845 | ) | | 20,970 |
| | (1,492 | ) | | 51,098 |
| | (2,337 | ) | Common Stock | 2,305 |
| | (126 | ) | | — |
| | — |
| | 2,305 |
| | (126 | ) | Total Temporarily Impaired Securities | $ | 32,433 |
| | $ | (971 | ) | | $ | 20,970 |
| | $ | (1,492 | ) | | $ | 53,403 |
| | $ | (2,463 | ) |
_________________ | | (2) | Includes approximately 122 securities. |
The Company monitors the length of time the security trades below its cost basis along with the amount and percentage of the unrealized loss in determining if a decline in fair value of marketable securities below recorded cost is considered to be other than temporary. In addition, the Company will research the future prospects of individual securities as necessary. As a result of these factors, as well as the Company’s intent and ability to hold these securities until their market price recovers, these securities are considered temporarily impaired. The Company does not anticipate expending monies held in trust before 2044 or a later period when the Company begins to decommission Palo Verde.
The reported fair values also include gross unrealized gains on marketable securities which have not been recognized in the Company’s net income. The table below presents the unrecognized gross unrealized gains and the fair value of these securities, aggregated by investment category (in thousands): | | | | | | | | | | | | | | | | | | March 31, 2014 | | December 31, 2013 | | Fair Value | | Unrealized Gains | | Fair Value | | Unrealized Gains | Description of Securities: | | | | | | | | Federal Agency Mortgage Backed Securities | $ | 10,276 |
| | $ | 489 |
| | $ | 9,929 |
| | $ | 433 |
| U.S. Government Bonds | 9,719 |
| | 180 |
| | 6,258 |
| | 126 |
| Municipal Obligations | 10,237 |
| | 528 |
| | 8,783 |
| | 450 |
| Corporate Obligations | 9,758 |
| | 649 |
| | 9,188 |
| | 506 |
| Total Debt Securities | 39,990 |
| | 1,846 |
| | 34,158 |
| | 1,515 |
| Common Stock | 105,835 |
| | 43,402 |
| | 103,808 |
| | 43,145 |
| Common Collective Trust-Equity Funds | 16,891 |
| | 235 |
| | — |
| | — |
| Equity Mutual Funds | — |
| | — |
| | 16,802 |
| | 3,081 |
| Cash and Cash Equivalents | 4,448 |
| | — |
| | 5,924 |
| | — |
| Total | $ | 167,164 |
| | $ | 45,483 |
| | $ | 160,692 |
| | $ | 47,741 |
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| Contractual Year For Maturity Of Available-For-Sale Securities |
The contractual year for maturity of these available-for-sale securities as of March 31, 2014 is as follows (in thousands): | | | | | | | | | | | | | | | | | | | | | | Total | | 2014 | | 2015
through
2018 | | 2019 through 2023 | | 2024 and Beyond | Municipal Debt Obligations | $ | 30,135 |
| | $ | 976 |
| | $ | 13,279 |
| | $ | 12,562 |
| | $ | 3,318 |
| Corporate Debt Obligations | 13,791 |
| | 317 |
| | 3,324 |
| | 5,963 |
| | 4,187 |
| U.S. Government Bonds | 27,395 |
| | 1,210 |
| | 14,347 |
| | 6,434 |
| | 5,404 |
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| Unrealized Holding Losses Included In Pre-Tax Income |
For the three and twelve months ended March 31, 2014 and 2013, the Company recognized other than temporary impairment losses on its available-for-sale securities as follows (in thousands): | | | | | | | | | | | | | | | | | | Three Months Ended | | Twelve Months Ended | | March 31, | | March 31, | | 2014 | | 2013 | | 2014 | | 2013 | Unrealized holding losses included in pre-tax income | $ | — |
| | $ | — |
| | $ | — |
| | $ | (479 | ) |
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| Sale of Securities And The Related Effects On Pre-Tax Income |
The proceeds from the sale of these securities and the related effects on pre-tax income are as follows (in thousands): | | | | | | | | | | | | | | | | | | Three Months Ended | | Twelve Months Ended | | March 31, | | March 31, | | 2014 | | 2013 | | 2014 | | 2013 | Proceeds from sales or maturities of available-for-sale securities | $ | 28,827 |
| | $ | 10,907 |
| | $ | 74,067 |
| | $ | 89,870 |
| Gross realized gains included in pre-tax income | $ | 3,014 |
| | $ | 39 |
| | $ | 3,961 |
| | $ | 1,128 |
| Gross realized losses included in pre-tax income | (149 | ) | | (197 | ) | | (385 | ) | | (2,062 | ) | Gross unrealized losses included in pre-tax income | — |
| | — |
| | — |
| | (479 | ) | Net gains (losses) in pre-tax income | $ | 2,865 |
| | $ | (158 | ) | | $ | 3,576 |
| | $ | (1,413 | ) | Net unrealized holding gains included in accumulated other comprehensive income | $ | 998 |
| | $ | 6,793 |
| | $ | 11,904 |
| | $ | 8,562 |
| Net (gains) losses reclassified out of accumulated other comprehensive income | (2,865 | ) | | 158 |
| | (3,576 | ) | | 1,413 |
| Net gains (losses) in other comprehensive income | $ | (1,867 | ) | | $ | 6,951 |
| | $ | 8,328 |
| | $ | 9,975 |
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| Fair Value, Measurement Inputs, Disclosure |
The fair value of the Company’s decommissioning trust funds and investment in debt securities, at March 31, 2014 and December 31, 2013, and the level within the three levels of the fair value hierarchy defined by FASB guidance are presented in the table below (in thousands): | | | | | | | | | | | | | | | | | Description of Securities | Fair Value as of March 31, 2014 | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | Trading Securities: | | | | | | | | Investments in Debt Securities | $ | 1,503 |
| | $ | — |
| | $ | — |
| | $ | 1,503 |
| Available for sale: | | | | | | | | U.S. Government Bonds | $ | 27,395 |
| | $ | 27,395 |
| | $ | — |
| | $ | — |
| Federal Agency Mortgage Backed Securities | 17,400 |
| | — |
| | 17,400 |
| | — |
| Municipal Obligations | 30,135 |
| | — |
| | 30,135 |
| | — |
| Corporate Obligations | 13,791 |
| | — |
| | 13,791 |
| | — |
| Subtotal, Debt Securities | 88,721 |
| | 27,395 |
| | 61,326 |
| | — |
| Common Stock | 107,449 |
| | 107,449 |
| | — |
| | — |
| Common Collective Trust-Equity Funds | 16,891 |
| | — |
| | 16,891 |
| | — |
| Cash and Cash Equivalents | 4,448 |
| | 4,448 |
| | — |
| | — |
| Total available for sale | $ | 217,509 |
| | $ | 139,292 |
| | $ | 78,217 |
| | $ | — |
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| | | | | | | | | | | | | | | | | Description of Securities | Fair Value as of December 31, 2013 | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | Trading Securities: | | | | | | | | Investments in Debt Securities | $ | 1,555 |
| | $ | — |
| | $ | — |
| | $ | 1,555 |
| Available for sale: | | | | | | | | U.S. Government Bonds | $ | 25,238 |
| | $ | 25,238 |
| | $ | — |
| | $ | — |
| Federal Agency Mortgage Backed Securities | 17,794 |
| | — |
| | 17,794 |
| | — |
| Municipal Obligations | 28,851 |
| | — |
| | 28,851 |
| | — |
| Corporate Obligations | 13,373 |
| | — |
| | 13,373 |
| | — |
| Subtotal, Debt Securities | 85,256 |
| | 25,238 |
| | 60,018 |
| | — |
| Common Stock | 106,113 |
| | 106,113 |
| | — |
| | — |
| Equity Mutual Funds | 16,802 |
| | 16,802 |
| | — |
| | — |
| Cash and Cash Equivalents | 5,924 |
| | 5,924 |
| | — |
| | — |
| Total available for sale | $ | 214,095 |
| | $ | 154,077 |
| | $ | 60,018 |
| | $ | — |
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