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Derivative and Hedging Instruments (Tables)

3 Months Ended

Mar. 31, 2017

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, 2017	December 31, 2016
Commodity derivative contracts	415,165 MWh	393,395 MWh
Commodity derivative contracts	1,677,500 Dth	4,195,000 Dth
FTRs	920 MW	2,251 MW
PPA	3,100 MW	3,250 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 sheets. 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, instruments are netted with the same counterparty under a master netting agreement as well as the netting of collateral. As of March 31, 2017 and December 31, 2016, the receivable – margin account balance of $0.6 million and $1.3 million, respectively, is shown net of any collateral posted against derivative positions.

		Derivative Assets		Derivative Liabilities
(In thousands)		Derivative Assets		Derivative Liabilities	Balance Sheet Location
March 31, 2017
Commodity derivative contracts^(a)	$	640	$	165	Other current assets^(b)
Commodity derivative contracts^(a)		24		87	Other deferred charges
FTRs		155		-	Other current assets
PPA		N/A		8,210	Derivative liability (current)
PPA		N/A		40,430	Derivative liability (long-term)

December 31, 2016
Commodity derivative contracts^(a)	$	1,227	$	164	Other current assets
Commodity derivative contracts^(a)		157		54	Other deferred charges
FTRs		143		-	Other current assets
PPA		N/A		7,620	Derivative liability (current)
PPA		N/A		42,970	Derivative liability (long-term)

(a) As of March 31, 2017, and December 31, 2016, no collateral was posted against and netted with derivative liability positions on the consolidated balance sheets.

(b) As of March 31, 2017, $0.1 million was presented as current derivative liabilities on the consolidated balance sheets.

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 consolidated balance sheets.

Offsetting of Derivative Assets
(In thousands)		Gross Amounts		Gross Amounts Offset in Balance Sheets		Collateral Posted Against Derivative Positions		Net Amount Presented in Balance Sheets
March 31, 2017
Commodity derivative contracts	$	664	$	(203)	$	-	$	461
FTRs		155		-		-		155

December 31, 2016
Commodity derivative contracts	$	1,384	$	(218)	$	-	$	1,166
FTRs		143		-		-		143

Offsetting Liabilities

Offsetting of Derivative Liabilities
(In thousands)		Gross Amounts		Gross Amounts Offset in Balance Sheets		Collateral Posted Against Derivative Positions		Net Amount Presented in Balance Sheets
March 31, 2017
Commodity derivative contracts	$	252	$	(203)	$	-	$	49
PPA		48,640		-		-		48,640

December 31, 2016
Commodity derivative contracts	$	218	$	(218)	$	-	$	-
PPA		50,590		-		-		50,590

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 sheets at March 31, 2017 and 2016, and the consolidated income statements for the three months ended March 31, 2017 and 2016.

		2017				2016
(In thousands)		Current and Long-Term Regulatory Asset		Other Current Assets		Current and Long-Term Regulatory Asset		Other Current Assets
Three Months Ended March 31:
Balance at January 1,	$	49,281	$	230	$	54,082	$	1,208
Unrealized (gain) loss		(689)		-		6,371		-
Realized (loss) gain reclassified to a deferred account		(78)		78		(1,451)		1,451
Realized loss reclassified to income statement		(441)		(166)		(2,118)		(2,004)
Balance at March 31,	$	48,073	$	142	$	56,884	$	655

Derivative Gains and Losses in Income Statement

		Realized losses (gains)
		2017				2016
(In thousands)		Fuel for Electric Generation/ Purchased Power		Cost of Gas Sold		Fuel for Electric Generation/ Purchased Power		Cost of Gas Sold
Three Months Ended March 31:
Commodity derivative contracts	$	385	$	146	$	1,007	$	1,814
FTRs		(685)		-		(68)		-
PPA		761		-		1,369		-