Derivative Accounting (Tables)

9 Months Ended

Sep. 30, 2013

Outstanding gross notional amount of derivatives, which represents both purchases and sales (does not reflect net position)

As of September 30, 2013, we had the following outstanding gross notional volume of derivatives, which represent both purchases and sales (does not reflect net position):

Commodity	Quantity
Power	6,498	gigawatt hours
Gas	112	Bcfs (a)

(a) “Bcf” is Billion Cubic Feet.

Gains and losses from derivative instruments in designated cash flow accounting hedges relationships

The following table provides information about gains and losses from derivative instruments in designated cash flow accounting hedging relationships (dollars in thousands):

		Three Months Ended September 30,						Nine Months Ended September 30,
Commodity Contracts	Financial Statement Location	2013			2012			2013			2012

Loss recognized in OCI on derivative instruments (effective portion)	Other comprehensive income (loss) — derivative instruments	$	(240	)	$	(119	)	$	(409	)	$	(37,513	)
Loss reclassified from AOCI into income (effective portion realized) (a)	Fuel and purchased power (b)	(23,658		)	(49,478		)	(39,156		)	(86,993		)
Gain recognized in income (ineffective portion and amount excluded from effectiveness testing)	Fuel and purchased power (b)	—			—			—			117

(a) During the three and nine months ended September 30, 2013 and three months ended September 30, 2012, we had no amounts reclassified from AOCI to earnings related to discontinued cash flow hedges. During the nine months ended September 30, 2012, we had $1.8 million of losses reclassified from AOCI to earnings related to discontinued cash flow hedges.

(b) Amounts are before the effect of PSA deferrals.

Gains and losses from derivative instruments not designated as accounting hedges instruments

The following table provides information about gains and losses from derivative instruments not designated as accounting hedging instruments during the three and nine months ended September 30, 2013 and 2012 (dollars in thousands):

		Three Months Ended September 30,					Nine Months Ended September 30,
Commodity Contracts	Financial Statement Location	2013			2012		2013			2012

Net gain recognized in income	Operating revenues (a)	$	196		$	258	$	400		$	19

Net gain (loss) recognized in income	Fuel and purchased power expense (a)	(1,341		)	12,870		(11,750		)	13,860
Total		$	(1,145	)	$	13,128	$	(11,350	)	$	13,879

(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 of offsetting

As of September 30, 2013: (dollars in thousands)	Gross Recognized Derivatives (a)			Amounts Offset (b)			Net Recognized Derivatives			Other (c)			Amount Reported on Balance Sheet
Current Assets	$	32,201		$	(9,605	)	$	22,596		$	145		$	22,741
Investments and Other Assets	27,905			(1,859		)	26,046			—			26,046
Total Assets	60,106			(11,464		)	48,642			145			48,787

Current Liabilities	(66,680		)	32,675			(34,005		)	(19,463		)	(53,468		)
Deferred Credits and Other	(74,751		)	7,089			(67,662		)	—			(67,662		)
Total Liabilities	(141,431		)	39,764			(101,667		)	(19,463		)	(121,130		)
Total	$	(81,325	)	$	28,300		$	(53,025	)	$	(19,318	)	$	(72,343	)

(a) All of our gross recognized derivative instruments were subject to master netting arrangements.

(b) Includes cash collateral provided to counterparties of $28,300.

(c) Represents cash collateral and 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 $19,463, and cash margin provided to counterparties of $145.

As of December 31, 2012: (dollars in thousands)	Gross Recognized Derivatives (a)			Amounts Offset (b)			Net Recognized Derivatives			Other (c)			Amount Reported on Balance Sheet
Current Assets	$	42,495		$	(17,797	)	$	24,698		$	1,001		$	25,699
Investments and Other Assets	41,563			(5,672		)	35,891			—			35,891
Total Assets	84,058			(23,469		)	60,589			1,001			61,590

Current Liabilities	(105,324		)	57,046			(48,278		)	(25,463		)	(73,741		)
Deferred Credits and Other	(100,986		)	15,722			(85,264		)	—			(85,264		)
Total Liabilities	(206,310		)	72,768			(133,542		)	(25,463		)	(159,005		)
Total	$	(122,252	)	$	49,299		$	(72,953	)	$	(24,462	)	$	(97,415	)

(a) All of our gross recognized derivative instruments were subject to master netting arrangements.

(b) Includes cash collateral provided to counterparties of $49,299.

(c) Represents cash collateral relating to non-derivative instruments or derivatives qualifying for scope exceptions. Includes cash collateral provided to counterparties of $1,001, and cash collateral received from counterparties of $25,463. This amount is not subject to offsetting.

Information about derivative instruments that have credit-risk-related contingent features

The following table provides information about our derivative instruments that have credit-risk-related contingent features at September 30, 2013 (dollars in millions):

	September 30, 2013
Aggregate Fair Value of Derivative Instruments in a Net Liability Position	$	141
Cash Collateral Posted	28
Additional Cash Collateral in the Event Credit-Risk-Related Contingent Features were Fully Triggered (a)	88

(a) This amount is after counterparty netting and includes those contracts which qualify for scope exceptions, which are excluded from the derivative details above.