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Derivative and Hedging Instruments (Tables)
 12 Months Ended
Dec. 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:

December 31, 2018December 31, 2017
Commodity derivative contracts386,440 MWh552,310 MWh
Commodity derivative contracts5,260,000 Dth5,460,000 Dth
FTRs2,252 MW2,226 MW
PPA2,050 MW2,650 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.

(In thousands)Derivative AssetsDerivative LiabilitiesBalance Sheet Location
December 31, 2018
Commodity derivative contracts(a)$727$270Other current assets
Commodity derivative contracts(a)7472Other deferred charges
FTRs241-Other current assets
PPAN/A8,550Derivative liability (current)
PPAN/A23,980Derivative liability (long-term)
December 31, 2017
Commodity derivative contracts(a)$566$603Derivative liability (current)(b)
Commodity derivative contracts(a)110190Derivative liability (long-term)
FTRs329-Other current assets
PPAN/A8,180Derivative liability (current)
PPAN/A33,990Derivative liability (long-term)

(a) As of December 31, 2017, collateral of $0.1 million was posted against and netted with derivative liability positions on the consolidated balance sheets. No collateral was posted against derivative positions as of December 31, 2018.

(b) As of December 31, 2017, MGE presented $0.1 million 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 AmountsGross Amounts Offset in Balance SheetsCollateral Posted Against Derivative PositionsNet Amount Presented in Balance Sheets
December 31, 2018
Commodity derivative contracts$801$(342)$-$459
FTRs241--241
December 31, 2017
Commodity derivative contracts$676$(654)$-$22
FTRs329--329
Offsetting Liabilities
Offsetting of Derivative Liabilities
(In thousands)Gross AmountsGross Amounts Offset in Balance SheetsCollateral Posted Against Derivative PositionsNet Amount Presented in Balance Sheets
December 31, 2018
Commodity derivative contracts$342$(342)$-$-
PPA32,530--32,530
December 31, 2017
Commodity derivative contracts$793$(654)$(139)$-
PPA42,170--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 as of December 31, 2018 and 2017, and the consolidated statements of income for the years ended December 31, 2018 and 2017.

20182017
Current and Long-Term Regulatory AssetOther Current AssetsCurrent and Long-Term Regulatory AssetOther Current Assets
(In thousands)
Balance as of January 1, $41,958$806$49,281$230
Unrealized gain(11,094)-(2,743)-
Realized gain (loss) reclassified to a deferred account 523(523)(1,260)1,260
Realized loss reclassified to income statement 44394(3,320)(684)
Balance as of December 31, $31,830$377$41,958$806
Derivative Gains and Losses in Income Statement
Realized Losses (Gains)
20182017
(In thousands)Fuel for Electric Generation/ Purchased Power Cost of Gas SoldFuel for Electric Generation/ Purchased Power Cost of Gas Sold
Year Ended December 31:
Commodity derivative contracts$(716)$(199)$786$634
FTRs(702)-(1,464)-
PPA1,080-4,048-