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Derivative and Hedging Instruments (Tables)
 3 Months Ended
Mar. 31, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Gross Notional Volume of Open Derivatives

The gross notional volume of open derivatives is as follows:

March 31, 2014December 31, 2013
Commodity derivative contracts409,800 MWh458,660 MWh
Commodity derivative contracts2,200,000 Dth3,750,000 Dth
FTRs790 MW1,984 MW
Fair Value of Derivative Instruments on the Balance Sheet

The following table summarizes the fair value of the derivative instruments on the consolidated balance sheet. All derivative instruments in this table are presented on a gross basis and are calculated prior to the netting of instruments with the same counterparty under a master netting agreement as well as the netting of collateral. For financial statement purposes, MGE Energy and MGE have netted instruments with the same counterparty under a master netting agreement as well as the netting of collateral.

Asset DerivativesLiability Derivatives
(In thousands)Balance Sheet LocationFair ValueBalance Sheet LocationFair Value
March 31, 2014
Commodity derivative contractsOther current assets$ 2,086Derivative liability (current)$ 111
Commodity derivative contractsOther deferred charges 37Derivative liability (long-term) 41
FTRsOther current assets 106Derivative liability (current) -
Ten-year PPAN/AN/ADerivative liability (current) 6,540
Ten-year PPAN/AN/ADerivative liability (long-term) 53,750
December 31, 2013
Commodity derivative contractsOther current assets$ 1,356Derivative liability (current)$ 51
Commodity derivative contractsOther deferred charges 167Derivative liability (long-term) 48
FTRsOther current assets 363Derivative liability (current) -
Ten-year PPAN/AN/ADerivative liability (current) 7,750
Ten-year PPAN/AN/ADerivative liability (long-term) 57,930
Offsetting Assets

The following tables show the effect of netting arrangements for recognized derivative assets and liabilities that are subject to a master netting arrangement or similar arrangement on the balance sheet.

Offsetting of Derivative Assets
(In thousands)Gross amountsGross amounts offset in balance sheetCollateral posted against derivative positionsNet amount presented in balance sheet
March 31, 2014
Commodity derivative contracts$ 2,123$ (152)$ -$ 1,971
FTRs 106 - - 106
December 31, 2013
Commodity derivative contracts$ 1,523$ (99)$ (175)$ 1,249
FTRs 363 - - 363
Offsetting Liabilities
Offsetting of Derivative Liabilities
(In thousands)Gross amountsGross amounts offset in balance sheetCollateral posted against derivative positionsNet amount presented in balance sheet
March 31, 2014
Commodity derivative contracts$ 152$ (152)$ -$ -
Ten-year PPA 60,290 - - 60,290
December 31, 2013
Commodity derivative contracts$ 99$ (99)$ -$ -
Ten-year PPA 65,680 - - 65,680
Derivative Gains and Losses in Balance Sheet

The following tables summarize the unrealized and realized gains (losses) related to the derivative instruments on the consolidated balance sheet at March 31, 2014 and 2013, and the consolidated income statement for the three months ended March 31, 2014 and 2013.

20142013
(In thousands)Current and long-term regulatory assetOther current assetsCurrent and long-term regulatory assetOther current assets
Three Months Ended March 31:
Balance at January 1,$ 63,893$ 411$ 72,329$ 574
Change in unrealized gain (13,601) - (1,697) -
Realized loss reclassified to a deferred account 1,535 (1,535) (290) 290
Realized gain (loss) reclassified to income
statement 6,386 1,475 (1,145) (605)
Balance at March 31,$ 58,213$ 351$ 69,197$ 259
Derivative Gains and Losses in Income Statement
Realized losses (gains)
(In thousands)Fuel for electric generation/ purchased powerCost of gas sold
Three Months Ended March 31, 2014:
Commodity derivative contracts$ (4,795)$ (1,220)
FTRs (636) -
Ten-year PPA (1,210) -
Three Months Ended March 31, 2013:
Commodity derivative contracts$ 22$ 608
FTRs (158) -
Ten-year PPA 1,278 -