RISK MANAGEMENT AND DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2014

Risk Management and Derivative Financial Instruments

Schedule of fair value of derivative financial instruments, balance sheet classification

As of December 31, 2014 and 2013, we have recorded the following assets and liabilities representing the fair value of derivative financial instruments held as of December 31, (in thousands):

ASSET DERIVATIVES

Non-designated hedging instruments due to regulatory accounting		2014		2013
	Balance Sheet Classification	Fair Value		Fair Value
Natural gas contracts, gas segment	Current assets	$	—	$	35
	Non-current assets and deferred charges — Other		—		—
Natural gas contracts, electric segment	Current assets		1		467
	Non-current assets and deferred charges — Other		—		41
Transmission congestion rights, electric segment	Current assets		3,900		1,967
Total derivatives assets		$	3,901	$	2,510

LIABILITY DERIVATIVES

Non-designated as hedging instruments due to regulatory accounting		2014		2013
	Balance Sheet Classification	Fair Value		Fair Value
Natural gas contracts, gas segment	Current liabilities	$	476	$	8
	Non-current liabilities and deferred credits		—		—
Natural gas contracts, electric segment	Current liabilities		5,993		1,881
	Non-current liabilities and deferred credits		3,243		2,799
Transmission congestion rights, electric segment	Current liabilities		—		—
Total derivatives liabilities		$	9,712	$	4,688

Schedule of mark-to-market pre-tax gains/(losses) from non-designated derivative instruments - electric segment

The following tables set forth "mark-to-market" pre-tax gains/ (losses) from non-designated derivative instruments for the electric segment for each of the years ended December 31 (in thousands):

Non-Designated Hedging Instruments — Due to Regulatory Accounting Electric Segment

		Amount of Gain/(Loss) Recognized on Balance Sheet
	Balance Sheet Classification of Gain/(Loss) on Derivative	2014			2013
Commodity contracts — electric segment	Regulatory (assets)/liabilities	$	(6,780	)	$	(338	)
Transmission congestion rights — electric segment	Regulatory (assets)/liabilities		12,958			1,967
Total — Electric Segment		$	6,178		$	1,629

Non-Designated Hedging Instruments — Due to Regulatory Accounting Electric Segment

		Amount of Gain/(Loss) Recognized in Income on Derivative
	Statement of Operations Classification of Loss on Derivative	2014			2013
Commodity contracts	Fuel and purchased power expense	$	(1,659	)	$	(2,725	)
Transmission congestion rights — electric segment	Fuel and purchased power expense		11,106			81
Total — Electric Segment		$	9,447		$	(2,644	)

Schedule of volumes and percentage of anticipated volume of natural gas usage for entity's electric operations with procurement guidelines

Year	% Hedged			Dth Hedged Physical		Dth Hedged Financial		Average Price
2015		63	%		1,550,000		4,510,000	$	4.351
2016		43	%		1,976,000		2,100,000	$	4.103
2017		20	%		782,900		1,300,000	$	4.133
2018		11	%		456,000		500,000	$	4.202
2019		—			—		—		—

Schedule of minimum percentage hedged by year in the entity's procurement guidelines

Year	End of Year Minimum % Hedged
Current	Up to 100%
First	60%
Second	40%
Third	20%
Fourth	10%

Schedule of transmission congestion rights (TCR)

Year	Monthly MWH Hedged		$ Value
2015		3,483	$	3,899,526

Schedule of minimum percentage of winter season usage hedged by year of the entity's gas operations

The following table sets forth our long-term hedge strategy of mitigating price volatility for our customers by hedging a minimum of expected gas usage for the current winter season and the next two winter seasons by the beginning of the ACA year at September 1 and illustrates our hedged position as of December 31, 2014 (Dth in thousands).

Season	Minimum % Hedged			Dth Hedged Financial		Dth Hedged Physical		Dth in Storage		Actual % Hedged
Current		50	%		430,000		341,000		1,178,367		97	%
Second		Up to 50	%		—		—		—		—
Third		Up to 20	%		—		—		—		—

Schedule of mark-to-market pre-tax gains/(losses) from non-designated derivative instruments - gas segment

The following table sets forth "mark-to-market" pre-tax gains/ (losses) from derivatives not designated as hedging instruments for the gas segment for the years ended December 31 (in thousands):

Non-Designated Hedging Instruments Due to Regulatory Accounting — Gas Segment

		Amount of Loss Recognized on Balance Sheet
	Balance Sheet Classification of Loss on Derivative	2014			2013
Commodity contracts	Regulatory assets	$	(511	)	$	(5	)
			—
Total — Gas Segment		$	(511	)	$	(5	)

Schedule of margin deposit assets

(in millions)	December 31, 2014		December 31, 2013
Margin deposit assets	$	9.1	$	5.2