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Fair Value Measurements (Tables)
12 Months Ended
Dec. 31, 2018
Fair Value Disclosures [Abstract]  
Fair value of assets and liabilities that are measured at fair value on a recurring basis The following table presents the fair value at December 31, 2018 of our assets and liabilities that are measured at fair value on a recurring basis (dollars in thousands):

 
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs 
(Level 3)
 
Other
 
 
 
Balance at December 31, 2018
Assets
 

 
 

 
 

 
 

 
 
 
 

Cash equivalents
$
1,200

 
$

 
$

 
$

 
 
 
$
1,200

Risk management activities — derivative instruments:
 

 
 

 
 

 
 

 
 
 
 

Commodity contracts

 
3,140

 
2

 
(2,029
)
 
(a)
 
1,113

Nuclear decommissioning trust:
 

 
 

 
 

 
 
 
 
 
 

Equity securities
5,203

 

 

 
2,148

 
(b)
 
7,351

U.S. commingled equity funds

 

 

 
396,805

 
(c)
 
396,805

U.S. Treasury debt
148,173

 

 

 

 
 
 
148,173

Corporate debt

 
96,656

 

 

 
 
 
96,656

Mortgage-backed debt securities

 
113,115

 

 

 
 
 
113,115

Municipal bonds

 
79,073

 

 

 
 
 
79,073

Other fixed income

 
9,961

 

 

 
 
 
9,961

Subtotal nuclear decommissioning trust
153,376

 
298,805

 

 
398,953

 

 
851,134

 
 
 
 
 
 
 
 
 
 
 
 
Other special use funds:
 
 
 
 
 
 
 
 
 
 
 
Equity securities
45,130

 

 

 
593

 
(b)
 
45,723

U.S. Treasury debt
173,310

 

 

 

 
 
 
173,310

Municipal bonds

 
17,068

 

 

 
 
 
17,068

Subtotal other special use funds
218,440

 
17,068

 

 
593

 
 
 
236,101

 
 
 
 
 
 
 
 
 
 
 
 
Total Assets
$
373,016

 
$
319,013

 
$
2

 
$
397,517

 
 
 
$
1,089,548

Liabilities
 

 
 

 
 

 
 

 
 
 
 

Risk management activities — derivative instruments:
 

 
 

 
 

 
 

 
 
 
 

Commodity contracts
$

 
$
(52,696
)
 
$
(8,216
)
 
$
875

 
(a)
 
$
(60,037
)

(a)
Represents counterparty netting, margin, and collateral. See Note 16.
(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, 2017 of our assets and liabilities that are measured at fair value on a recurring basis (dollars in thousands):
 
 
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs (a)
(Level 3)
 
Other
 
 
 
Balance at December 31, 2017
Assets
 

 
 

 
 

 
 

 
 
 
 

Cash equivalents
$
10,630

 
$

 
$

 
$

 
 
 
$
10,630

Risk management activities — derivative instruments:
 

 
 

 
 

 
 

 
 
 
 

Commodity contracts

 
5,683

 
1,036

 
(4,737
)
 
(b)
 
1,982

Nuclear decommissioning trust:
 

 
 

 
 

 
 

 
 
 
 

Cash and cash equivalents
7,224

 

 

 
109

 
(d)
 
7,333

U.S. commingled equity funds

 

 

 
417,390

 
(e)
 
417,390

U.S. Treasury debt
127,662

 

 

 

 
 
 
127,662

Corporate debt

 
114,007

 

 

 
 
 
114,007

Mortgage-backed debt securities

 
111,874

 

 

 
 
 
111,874

Municipal bonds

 
79,049

 

 

 
 
 
79,049

Other fixed income

 
13,685

 

 

 
 
 
13,685

Subtotal nuclear decommissioning trust
134,886

 
318,615

 

 
417,499

 

 
871,000

 
 
 
 
 
 
 
 
 
 
 
 
Other special use funds (c):
455

 
31,562

 

 
525

 
 
 
32,542

 
 
 
 
 
 
 
 
 
 
 
 
Total Assets
$
145,971

 
$
355,860

 
$
1,036

 
$
413,287

 

 
$
916,154

Liabilities
 

 
 

 
 

 
 

 
 
 
 

Risk management activities — derivative instruments:
 

 
 

 
 

 
 

 
 
 
 

Commodity contracts
$

 
$
(78,646
)
 
$
(19,292
)
 
$
1,516

 
(b)
 
$
(96,422
)
(a)
Primarily consists of long-dated electricity contracts.
(b)
Represents counterparty netting, margin, and collateral. See Note 16.
(c)
Primarily consists of fixed income municipal bonds. Presented as coal reclamation escrow in 2017.
(d)
Represents nuclear decommissioning trust net pending securities sales and purchases.
(e)
Valued using NAV as a practical expedient and, therefore, are not classified in the fair value hierarchy.
Information regarding the entity's internally developed significant unobservable inputs used to value its level 3 instruments The following tables provide information regarding our significant unobservable inputs used to value our risk management derivative Level 3 instruments at December 31, 2018 and December 31, 2017:
 
 
December 31, 2018
Fair Value (thousands)
 
Valuation Technique
 
Significant Unobservable Input
 
Range
 
Weighted-Average
Commodity Contracts
Assets
 
Liabilities
 
Electricity:
 

 
 

 
 
 
 
 
 
 
 

Forward Contracts (a)
$

 
$
2,456

 
Discounted cash flows
 
Electricity forward price (per MWh)
 
$17.88 - $37.03
 
$
26.10

Natural Gas:
 

 
 

 
 
 
 
 
 
 
 

Forward Contracts (a)
2

 
5,760

 
Discounted cash flows
 
Natural gas forward price (per MMBtu)
 
$1.79 - $2.92
 
$
2.48

Total
$
2

 
$
8,216

 
 
 
 
 
 
 
 

(a)
Includes swaps and physical and financial contracts.
 
 
December 31, 2017
Fair Value (thousands)
 
Valuation Technique
 
Significant Unobservable Input
 
Range
 
Weighted-Average
Commodity Contracts
Assets
 
Liabilities
 
Electricity:
 

 
 

 
 
 
 
 
 
 
 

Forward Contracts (a)
$
21

 
$
15,485

 
Discounted cash flows
 
Electricity forward price (per MWh)
 
$18.51 - $38.75
 
$
27.89

Natural Gas:
 

 
 

 
 
 
 
 
 
 
 

Forward Contracts (a)
1,015

 
3,807

 
Discounted cash flows
 
Natural gas forward price (per MMBtu)
 
$2.33 - $3.11
 
$
2.71

Total
$
1,036

 
$
19,292

 
 
 
 
 
 
 
 

(a)
Includes swaps and physical and financial contracts.
Changes in fair value for assets and liabilities that are measured at fair value on a recurring basis using Level 3 inputs 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 for the years ended December 31, 2018 and 2017 (dollars in thousands):
 
 
 
Year Ended
December 31,
Commodity Contracts
 
2018
 
2017
Net derivative balance at beginning of period
 
$
(18,256
)
 
$
(47,406
)
Total net gains (losses) realized/unrealized:
 
 

 
 

Included in earnings
 

 

Included in OCI
 

 
3

Deferred as a regulatory asset or liability
 
(1,130
)
 
(13,643
)
Settlements
 
(787
)
 
5,834

Transfers into Level 3 from Level 2
 
(12,830
)
 
(10,026
)
Transfers from Level 3 into Level 2
 
24,789

 
46,982

Net derivative balance at end of period
 
$
(8,214
)
 
$
(18,256
)
Net unrealized gains included in earnings related to instruments still held at end of period
 
$

 
$