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Derivative and Hedging Instruments (Tables)

9 Months Ended

Sep. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Gross Notional Volume of Open Derivatives

The gross notional volume of open derivatives is as follows:

	September 30, 2017	December 31, 2016
Commodity derivative contracts	634,605 MWh	393,395 MWh
Commodity derivative contracts	7,924,500 Dth	4,195,000 Dth
FTRs	3,552 MW	2,251 MW
PPA	2,800 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 September 30, 2017, and December 31, 2016, the receivable – margin account balance of $1.5 million and $1.3 million, respectively, is shown net of any collateral posted against derivative positions.

		Derivative		Derivative
(In thousands)		Assets		Liabilities	Balance Sheet Location
September 30, 2017
Commodity derivative contracts^(a)	$	857	$	560	Other current assets^(b)
Commodity derivative contracts^(a)		112		122	Other deferred charges
FTRs		567		-	Other current assets
PPA		N/A		8,240	Derivative liability (current)
PPA		N/A		34,890	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 September 30, 2017, and December 31, 2016, no collateral was posted against and netted with derivative liability positions on the consolidated balance sheets.

(b) As of September 30, 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
September 30, 2017
Commodity derivative contracts	$	969	$	(634)	$	-	$	335
FTRs		567		-		-		567

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
September 30, 2017
Commodity derivative contracts	$	682	$	(634)	$	-	$	48
PPA		43,130		-		-		43,130

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 September 30, 2017 and 2016, and the consolidated income statements for the three and nine months ended September 30, 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 September 30:
Balance at July 1,	$	45,316	$	618	$	50,521	$	659
Unrealized gain		(1,277)		-		(663)		-
Realized (loss) gain reclassified to a deferred account		(313)		313		17		(17)
Realized (loss) gain reclassified to income statement		(1,450)		(57)		(304)		46
Balance at September 30,	$	42,276	$	874	$	49,571	$	688

Nine Months Ended September 30:
Balance at January 1,	$	49,281	$	230	$	54,082	$	1,208
Unrealized (gain) loss		(3,698)		-		1,128		-
Realized (loss) gain reclassified to a deferred account		(935)		935		(1,417)		1,417
Realized loss reclassified to income statement		(2,372)		(291)		(4,222)		(1,937)
Balance at September 30,	$	42,276	$	874	$	49,571	$	688

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 September 30:
Commodity derivative contracts	$	362	$	18	$	45	$	-
FTRs		(224)		-		(703)		-
PPA		1,351		-		916		-

Nine Months Ended September 30:
Commodity derivative contracts	$	764	$	227	$	1,469	$	1,814
FTRs		(1,349)		-		(635)		-
PPA		3,021		-		3,511		-