XML 80 R53.htm IDEA: XBRL DOCUMENT v3.22.4
Derivative Accounting (Tables)
 12 Months Ended
Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Outstanding gross notional amount of derivatives, which represents both purchases and sales (does not reflect net position)
The following table shows the outstanding gross notional volume of energy derivatives, which represent both purchases and sales (does not reflect net position):
 
Quantity
CommodityUnit of MeasureDecember 31, 2022December 31, 2021
PowerGWh1,197 — 
GasBillion cubic feet149 155 
Schedule of Gains and losses from derivative instruments in designated cash flow accounting hedges relationships
The following table provides information about APS’s gains and losses from energy derivative instruments in designated cash flow accounting hedging relationships (dollars in thousands):
Financial Statement Year Ended
December 31,
Commodity ContractsLocation202220212020
Loss Reclassified from Accumulated OCI into Income (Effective Portion Realized) (a)Fuel and purchased power (b)$— $— $(763)
(a)During the years ended December 31, 2022, 2021, and 2020, we had no gains or losses reclassified from accumulated OCI to earnings related to discontinued cash flow hedges.
(b)Amounts are before the effect of PSA deferrals.
Schedule of Gains and losses from derivative instruments not designated as accounting hedges instruments
The following table provides information about gains and losses from energy derivative instruments not designated as accounting hedging instruments (dollars in thousands):

Financial Statement Year Ended
December 31,
Commodity ContractsLocation202220212020
Net Gain (Loss) Recognized in IncomeFuel and purchased power (a)$307,287 $216,847 $(3,178)
(a)Amounts are before the effect of PSA deferrals.
Schedule of the entity's fair value of risk management activities reported on a gross basis and the impacts on offsetting liabilities
The following tables provide information about the fair value of APS's risk management activities reported on a gross basis and the impacts of offsetting.  These amounts relate to commodity contracts and are located in the assets and liabilities from risk management activities lines of APS's Consolidated Balance Sheets.

As of December 31, 2022:
 (dollars in thousands) 		Gross 
Recognized 
Derivatives
 (a)		Amounts 
Offset
(b)		Net
 Recognized
 Derivatives		Other
 (c)		Amounts 
Reported on 
Balance Sheets
Current assets$103,484 $(15,808)$87,676 $28 $87,704 
Investments and other assets49,777 (5,383)44,394 — 44,394 
Total assets153,261 (21,191)132,070 28 132,098 
Current liabilities(47,670)15,808 (31,862)(5,835)(37,697)
Deferred credits and other(9,223)5,383 (3,840)— (3,840)
Total liabilities(56,893)21,191 (35,702)(5,835)(41,537)
Total$96,368 $— $96,368 $(5,807)$90,561 
(a)All of our gross recognized derivative instruments were subject to master netting arrangements.
(b)No cash collateral has been provided to counterparties, or received from counterparties, that is subject to offsetting.
(c)Represents cash collateral and cash margin that is not subject to offsetting. Amounts relate to non-derivative instruments, derivatives qualifying for scope exceptions, or collateral and margin posted in excess of the recognized derivative instrument.  Includes cash collateral received from counterparties of $5,835 thousand and cash margin provided to counterparties of $28 thousand.
As of December 31, 2021:
 (dollars in thousands) 		Gross
 Recognized
 Derivatives
 (a)		Amounts
Offset 
(b)		Net
 Recognized
 Derivatives		Other
 (c)		Amounts
 Reported on
 Balance Sheets
Current assets$66,777 $(3,346)$63,431 $50 $63,481 
Investments and other assets48,302 (1,394)46,908 — 46,908 
Total assets115,079 (4,740)110,339 50 110,389 
Current liabilities(6,084)3,346 (2,738)(1,635)(4,373)
Deferred credits and other(1,394)1,394 — — — 
Total liabilities(7,478)4,740 (2,738)(1,635)(4,373)
Total$107,601 $— $107,601 $(1,585)$106,016 
(a)All of our gross recognized derivative instruments were subject to master netting arrangements.
(b)No cash collateral has been provided to counterparties, or received from counterparties, that is subject to offsetting.
(c)Represents cash collateral and cash margin that is not subject to offsetting.  Amounts relate to non-derivative instruments, derivatives qualifying for scope exceptions, or collateral and margin posted in excess of the recognized derivative instrument.  Includes cash collateral received from counterparties of $1,635 thousand and cash margin provided to counterparties of $50 thousand.
Schedule of the entity's fair value of risk management activities reported on a gross basis and the impacts on offsetting assets
The following tables provide information about the fair value of APS's risk management activities reported on a gross basis and the impacts of offsetting.  These amounts relate to commodity contracts and are located in the assets and liabilities from risk management activities lines of APS's Consolidated Balance Sheets.

As of December 31, 2022:
 (dollars in thousands) 		Gross 
Recognized 
Derivatives
 (a)		Amounts 
Offset
(b)		Net
 Recognized
 Derivatives		Other
 (c)		Amounts 
Reported on 
Balance Sheets
Current assets$103,484 $(15,808)$87,676 $28 $87,704 
Investments and other assets49,777 (5,383)44,394 — 44,394 
Total assets153,261 (21,191)132,070 28 132,098 
Current liabilities(47,670)15,808 (31,862)(5,835)(37,697)
Deferred credits and other(9,223)5,383 (3,840)— (3,840)
Total liabilities(56,893)21,191 (35,702)(5,835)(41,537)
Total$96,368 $— $96,368 $(5,807)$90,561 
(a)All of our gross recognized derivative instruments were subject to master netting arrangements.
(b)No cash collateral has been provided to counterparties, or received from counterparties, that is subject to offsetting.
(c)Represents cash collateral and cash margin that is not subject to offsetting. Amounts relate to non-derivative instruments, derivatives qualifying for scope exceptions, or collateral and margin posted in excess of the recognized derivative instrument.  Includes cash collateral received from counterparties of $5,835 thousand and cash margin provided to counterparties of $28 thousand.
As of December 31, 2021:
 (dollars in thousands) 		Gross
 Recognized
 Derivatives
 (a)		Amounts
Offset 
(b)		Net
 Recognized
 Derivatives		Other
 (c)		Amounts
 Reported on
 Balance Sheets
Current assets$66,777 $(3,346)$63,431 $50 $63,481 
Investments and other assets48,302 (1,394)46,908 — 46,908 
Total assets115,079 (4,740)110,339 50 110,389 
Current liabilities(6,084)3,346 (2,738)(1,635)(4,373)
Deferred credits and other(1,394)1,394 — — — 
Total liabilities(7,478)4,740 (2,738)(1,635)(4,373)
Total$107,601 $— $107,601 $(1,585)$106,016 
(a)All of our gross recognized derivative instruments were subject to master netting arrangements.
(b)No cash collateral has been provided to counterparties, or received from counterparties, that is subject to offsetting.
(c)Represents cash collateral and cash margin that is not subject to offsetting.  Amounts relate to non-derivative instruments, derivatives qualifying for scope exceptions, or collateral and margin posted in excess of the recognized derivative instrument.  Includes cash collateral received from counterparties of $1,635 thousand and cash margin provided to counterparties of $50 thousand.
Schedule of Information about derivative instruments that have credit-risk-related contingent features
The following table provides information about our energy derivative instruments that have credit-risk-related contingent features (dollars in thousands):
 December 31, 2022
Aggregate fair value of derivative instruments in a net liability position$56,893 
Cash collateral posted— 
Additional cash collateral in the event credit-risk related contingent features were fully triggered (a)32,884 
(a)This amount is after counterparty netting and includes those contracts which qualify for scope exceptions, which are excluded from the derivative details above.