Derivative Instruments

12 Months Ended

Dec. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE INSTRUMENTS

DERIVATIVE INSTRUMENTS

Derivative assets and liabilities are included in the other current and other long-term line items on our balance sheets. The following table shows our derivative assets and derivative liabilities. None of the derivatives shown below were designated as hedging instruments.

	December 31, 2023				December 31, 2022
(in millions)	Derivative Assets		Derivative Liabilities		Derivative Assets		Derivative Liabilities
Current
Natural gas contracts	$	10.4	$	78.1	$	32.5	$	88.2
FTRs and TCRs	7.2		—		7.8		—
Coal contracts	0.3		10.9		18.9		—
Total current	17.9		89.0		59.2		88.2
Long-term
Natural gas contracts	0.1		8.0		—		8.4
Coal contracts	—		9.4		15.6		—
Total long-term	0.1		17.4		15.6		8.4
Total	$	18.0	$	106.4	$	74.8	$	96.6

Realized gains and losses on derivatives used in our regulatory utility operations are recorded in cost of sales upon settlement; however, they may be subsequently deferred for future rate recovery or refund as the gains and losses are included in our utilities’ fuel and natural gas cost recovery mechanisms. Realized gains and losses on FTRs and TCRs used in our non-utility operations are recorded in operating revenues on the income statements. Our estimated notional sales volumes and realized gains and losses were as follows for the years ended:

	December 31, 2023			December 31, 2022			December 31, 2021
(in millions)	Volumes	Gains (Losses)		Volumes	Gains		Volumes	Gains
Natural gas contracts	198.0 Dth	$	(259.1)	183.3 Dth	$	299.5	197.6 Dth	$	136.5
FTRs and TCRs	30.2 MWh	25.9		27.2 MWh	11.8		28.2 MWh	17.7
Total		$	(233.2)		$	311.3		$	154.2

At December 31, 2023 and 2022, we had posted cash collateral of $100.3 million and $122.4 million, respectively.

The following table shows derivative assets and derivative liabilities if derivative instruments by counterparty were presented net on our balance sheets:

	December 31, 2023					December 31, 2022
(in millions)	Derivative Assets		Derivative Liabilities			Derivative Assets		Derivative Liabilities
Gross amount recognized on the balance sheet	$	18.0	$	106.4		$	74.8	$	96.6
Gross amount not offset on the balance sheet	(3.1)		(71.0)		(1)	(17.5)		(82.5)		(2)
Net amount	$	14.9	$	35.4		$	57.3	$	14.1

(1)    Includes cash collateral posted of $67.9 million.

(2)    Includes cash collateral posted of $65.0 million.

Cash Flow Hedges

Until their expiration on November 15, 2021, we had two interest rate swaps with a combined notional value of $250.0 million to hedge the variable interest rate risk associated with our 2007 Junior Notes. The swaps provided a fixed interest rate of 4.9765% on $250.0 million of the $500.0 million of outstanding 2007 Junior Notes. As these swaps qualified for cash flow hedge accounting treatment, the related gains and losses were deferred in accumulated other comprehensive loss and were amortized to interest expense as interest was accrued on the 2007 Junior Notes.

We also previously entered into forward interest rate swap agreements to mitigate the interest rate exposure associated with the issuance of long-term debt related to the acquisition of Integrys. These swap agreements were settled in 2015, and we continue to

amortize amounts out of accumulated other comprehensive loss into interest expense over the periods in which the interest costs are recognized in earnings.

The derivative gains and losses related to these swap agreements recognized in other comprehensive income and reclassified from accumulated other comprehensive loss to interest expense during the years ended December 31, 2023, 2022, and 2021 were not significant. At December 31, 2023, the amount expected to be reclassified from accumulated other comprehensive loss to interest expense over the next twelve months was also not significant.