XML 54 R42.htm IDEA: XBRL DOCUMENT v3.23.3
Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2023
Fair Value Disclosures [Abstract]  
Schedule of Fair Value of Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following table presents the fair value at September 30, 2023, of our assets and liabilities that are measured at fair value on a recurring basis (dollars in thousands):
 
 Level 1Level 2Level 3Other Total
ASSETS      
Cash equivalents$15 $— $— $— $15 
Risk management activities — derivative instruments:
Commodity contracts— 21,623 6,825 (13,901)(a)14,547 
Nuclear decommissioning trust:
Equity securities30,237 — — (17,110)(b)13,127 
U.S. commingled equity funds— — — 413,826 (c)413,826 
U.S. Treasury debt273,702 — — —  273,702 
Corporate debt— 173,383 — —  173,383 
Mortgage-backed securities— 181,335 — —  181,335 
Municipal bonds— 59,553 — —  59,553 
Other fixed income— 5,537 — —  5,537 
Subtotal nuclear decommissioning trust303,939 419,808 — 396,716 1,120,463 
Other special use funds:
Equity securities55,253 — — 1,282 (b)56,535 
U.S. Treasury debt307,710 — — — 307,710 
Municipal bonds— 3,914 — — 3,914 
Subtotal other special use funds362,963 3,914 — 1,282 368,159 
Total assets$666,917 $445,345 $6,825 $384,097 $1,503,184 
LIABILITIES
Risk management activities — derivative instruments:
Commodity contracts$— $(62,579)$— $6,835 (a)$(55,744)
Total liabilities$— $(62,579)$— $6,835 $(55,744)

(a)Represents counterparty netting, margin, and collateral. See Note 7.
(b)Represents net pending securities sales and purchases.
(c)Valued using NAV as a practical expedient and, therefore, are not classified in the fair value hierarchy.
The following table presents the fair value at December 31, 2022, of our assets and liabilities that are measured at fair value on a recurring basis (dollars in thousands):
 
 Level 1Level 2Level 3Other Total
ASSETS
Risk management activities — derivative instruments:
Commodity contracts$— $127,129 $26,132 $(21,163)(a)$132,098 
Interest rate swaps— 131 — — 131 
Subtotal risk management activities - derivative instruments— 127,260 26,132 (21,163)132,229 
Nuclear decommissioning trust:
Equity securities14,658 — — 3,827 (b)18,485 
U.S. commingled equity funds— — — 472,582 (c)472,582 
U.S. Treasury debt211,923 — — — 211,923 
Corporate debt— 149,226 — — 149,226 
Mortgage-backed securities— 147,938 — — 147,938 
Municipal bonds— 64,881 — — 64,881 
Other fixed income— 8,375 — — 8,375 
Subtotal nuclear decommissioning trust226,581 370,420 — 476,409 1,073,410 
Other special use funds:
Equity securities66,974 — — 963 (b)67,937 
U.S. Treasury debt275,267 — — — 275,267 
Municipal bonds— 4,027 — — 4,027 
Subtotal other special use funds342,241 4,027 — 963 347,231 
Total assets$568,822 $501,707 $26,132 $456,209 $1,552,870 
LIABILITIES
Risk management activities — derivative instruments:
Commodity contracts$— $(25,874)$(31,020)$15,357 (a)$(41,537)
Interest rate swaps— (909)— — (909)
Subtotal risk management activities - derivative instruments— (26,783)(31,020)15,357 (42,446)
Total liabilities$— $(26,783)$(31,020)$15,357 $(42,446)

(a)Represents counterparty netting, margin, and collateral. See Note 7.
(b)Represents net pending securities sales and purchases.
(c)Valued using NAV as a practical expedient and, therefore, are not classified in the fair value hierarchy.
The following table shows the changes in fair value for our risk management activities’ assets and liabilities that are measured at fair value on a recurring basis using Level 3 inputs (dollars in thousands):

 Three Months Ended
September 30,		Nine Months Ended September 30,
Commodity Contracts2023202220232022
Net derivative balance at beginning of period$(1,279)$4,546 $(4,888)$(2,738)
Total net gains (losses) realized/unrealized:
Deferred as a regulatory asset or liability(9,999)1,179 (67,285)10,473 
Settlements18,103 4,827 68,681 2,440 
Transfers into Level 3 from Level 2— (144)(1,289)40 
Transfers from Level 3 into Level 2— — 11,606 193 
Net derivative balance at end of period$6,825 $10,408 $6,825 $10,408 
Net unrealized gains included in earnings related to instruments still held at end of period$— $— $— $— 
Schedule of Fair Value Measurement Inputs and Valuation Techniques
The following tables provide information regarding our significant unobservable inputs used to value our risk management derivative Level 3 instruments at September 30, 2023 and December 31, 2022:

September 30, 2023
 Fair Value (thousands)		ValuationSignificantWeighted-Average
Commodity ContractsAssetsLiabilitiesTechniqueUnobservable InputRange (b)
Electricity:
Forward Contracts (a)$6,175 $— Discounted cash flowsElectricity forward price (per MWh)$37.79-$224.49$121.24 
Natural Gas:
Forward Contracts (a)650 — Discounted cash flowsNatural gas forward price (per MMBtu)$0.10-$0.13$0.11 
Total$6,825 $— 
(a)Includes swaps and physical and financial contracts.
(b)Unobservable inputs were weighted by the relative fair value of the instrument.

December 31, 2022
 Fair Value (thousands)		ValuationSignificantWeighted-Average
Commodity ContractsAssetsLiabilitiesTechniqueUnobservable InputRange(b)
Electricity:
Forward Contracts (a)$26,132 $1,759 Discounted cash flowsElectricity forward price (per MWh)$37.79-$310.69$163.92 
Natural Gas:
Forward Contracts (a)— 29,261 Discounted cash flowsNatural gas forward price (per MMBtu)$(11.81)-$0.00$(5.08)
Total$26,132 $31,020 
(a)Includes swaps and physical and financial contracts.
(b)Unobservable inputs were weighted by the relative fair value of the instrument.