RISK MANAGEMENT AND DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

3 Months Ended

Mar. 31, 2015

Risk Management and Derivative Financial Instruments

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

As of March 31, 2015 and December 31, 2014, we have recorded the following assets and liabilities representing the fair value of derivative financial instruments, (in thousands):

		March 31,		December 31,
ASSET DERIVATIVES		2015		2014
Hedging instruments	Balance Sheet Classification	Fair Value		Fair Value
Natural gas contracts, gas segment	Current assets	$	—	$	—
Natural gas contracts, electric segment	Current assets			1
	Non-current assets and deferred charges — other			—
Transmission congestion rights, electric segment	Current assets	1,466		3,900
Total derivatives assets		$	1,466	$	3,901

		March 31,		December 31,
LIABILITY DERIVATIVES		2015		2014
Hedging instruments	Balance Sheet Classification	Fair Value		Fair Value
Natural gas contracts, gas segment	Current liabilities	$	171	$	476
Natural gas contracts, electric segment	Current liabilities	6,514		5,993
	Non-current liabilities and deferred credits	4,488		3,243
Total derivatives liabilities		$	11,173	$	9,712

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 periods ended March 31, (in thousands):

Non-Designated Hedging Instruments	Balance Sheet	Amount of Gain / (Loss) Recognized on Balance Sheet
— Due to Regulatory Accounting	Classification of Gain /	Three Months Ended					Twelve Months Ended
Electric Segment	(Loss) on Derivative	2015			2014		2015			2014
Commodity contracts	Regulatory (assets)/liabilities	$	(2,540	)	$	1,758	$	(11,077	)	$	(1,002	)
Transmission congestion rights	Regulatory (assets)/liabilities	1,105			629		13,434			2,596
Total Electric Segment		$	(1,435	)	$	2,387	$	2,357		$	1,594

Non-Designated Hedging Instruments	Statement of Income	Amount of Gain / (Loss) Recognized in Income on Derivative
—Due to Regulatory Accounting	Classification of Gain /	Three Months Ended					Twelve Months Ended
Electric Segment	(Loss) on Derivative	2015			2014		2015			2014
Commodity contracts	Fuel and purchased power Expense	$	(1,421	)	$	754	$	(3,834	)	$	(1,856	)
Transmission congestion rights	Fuel and purchased power expense	3,438			800		13,743			881
Total Electric Segment		$	2,017		$	1,554	$	9,909		$	(975	)

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

			Dth Hedged				Procurement
Year	% Hedged		Physical	Financial	Average Price		Guidelines
Remainder 2015	57	%	800,000	3,610,000	$	4.41	Up to 100%
2016	42	%	1,976,000	2,100,000	$	4.10	60%
2017	20	%	782,900	1,300,000	$	4.13	40%
2018	10	%	565,000	500,000	$	4.12	20%
2019	—		—	—	—		10%

Schedule of transmission congestion rights (TCR)

At March 31, 2015, the following transmission congestion rights (TCR) have been obtained to hedge congestion risk in the SPP IM (dollars in thousands):

Year	Monthly MWH Hedged	$ Value
2015	1,421	$	1,465,637

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 Actual Cost Adjustment (ACA) year at September 1 and illustrates our hedged position as of March 31, 2015 (in thousands).

Season	Minimum % Hedged	Dth Hedged — Financial	Dth Hedged — Physical	Dth in Storage	Actual % Hedged
Current	50%	800,000	—	235,924	32	%
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 each of the periods ended March 31 (in thousands).

Non-Designated Hedging	Balance Sheet	Amount of Gain / (Loss) Recognized on Balance Sheet
Instruments Due to Regulatory	Classification of Gain or	Three Months Ended					Twelve Months Ended
Accounting — Gas Segment	(Loss) on Derivative	2015			2014		2015			2014
Commodity contracts	Regulatory (assets)/liabilities	$	(17	)	$	82	$	(478	)	$	24
Total - Gas Segment		$	(17	)	$	82	$	(478	)	$	24

Schedule of margin deposit assets

	March 31, 2015		December 31, 2014
(in millions)
Margin deposit assets	$	11.1	$	9.1