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Derivative and Hedging Instruments (Tables)

3 Months Ended

Mar. 31, 2018

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, 2018	December 31, 2017
Commodity derivative contracts	538,050 MWh	552,310 MWh
Commodity derivative contracts	3,270,000 Dth	5,460,000 Dth
FTRs	886 MW	2,226 MW
PPA	2,500 MW	2,650 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, 2018, and December 31, 2017, the receivable margin account balance of $2.3 million and $2.5 million, respectively, is shown net of any collateral posted against derivative positions.

		Derivative		Derivative
(In thousands)		Assets		Liabilities	Balance Sheet Location
March 31, 2018
Commodity derivative contracts^(a)	$	403	$	294	Derivative liability (current)^(b)
Commodity derivative contracts^(a)		9		189	Derivative liability (long-term)
FTRs		120		-	Other current assets
PPA		N/A		8,950	Derivative liability (current)
PPA		N/A		32,340	Derivative liability (long-term)

December 31, 2017
Commodity derivative contracts^(a)	$	566	$	603	Derivative liability (current)^(b)
Commodity derivative contracts^(a)		110		190	Derivative liability (long-term)
FTRs		329		-	Other current assets
PPA		N/A		8,180	Derivative liability (current)
PPA		N/A		33,990	Derivative liability (long-term)

(a) As of March 31, 2018, and December 31, 2017, collateral of $0.1 million was posted against and netted with derivative liability positions on the consolidated balance sheets.

(b) As of March 31, 2018, and December 31, 2017, $0.1 million was presented as other current assets 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, 2018
Commodity derivative contracts	$	412	$	(390)	$	-	$	22
FTRs		120		-		-		120

December 31, 2017
Commodity derivative contracts	$	676	$	(654)	$	-	$	22
FTRs		329		-		-		329

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, 2018
Commodity derivative contracts	$	483	$	(390)	$	(93)	$	-
PPA		41,290		-		-		41,290

December 31, 2017
Commodity derivative contracts	$	793	$	(654)	$	(139)	$	-
PPA		42,170		-		-		42,170

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, 2018 and 2017, and the consolidated income statements for the three months ended March 31, 2018 and 2017.

		2018				2017
(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,	$	41,958	$	806	$	49,281	$	230
Unrealized loss (gain)		128		-		(689)		-
Realized (loss) gain reclassified to a deferred account		(158)		158		(78)		78
Realized loss reclassified to income statement		(687)		(645)		(441)		(166)
Balance at March 31,	$	41,241	$	319	$	48,073	$	142

Derivative Gains and Losses in Income Statement

		Realized losses (gains)
		2018				2017
(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	$	374	$	615	$	385	$	146
FTRs		(175)		-		(685)		-
PPA		518		-		761		-