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DERIVATIVE INSTRUMENTS (Tables)
 6 Months Ended
Jun. 30, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Fair value of derivative instruments
The fair values of all derivative instruments, as reflected in the condensed consolidated balance sheets as of June 30, 2014 and December 31, 2013, are as follows (in thousands):

Derivatives not designated as hedging instruments under GAAP
 
June 30, 2014
 
December 31, 2013
 
 
Assets
 
Liabilities
 
Assets
 
Liabilities
Energy related commodity contracts:
 
 
 
 
 
 
 
 
Derivatives – Energy Related – Current
 
$
58,213

 
$
93,123

 
$
56,327

 
$
77,993

Derivatives – Energy Related – Non-Current
 
13,106

 
17,247

 
26,451

 
22,131

Interest rate contracts:
 
 
 
 
 
 

 
 

Derivatives - Other
 
—

 
8,740

 
—

 
6,676

Total derivatives not designated as hedging instruments under GAAP
 
71,319

 
119,110

 
82,778

 
106,800

 
 
 
 
 
 
 
 
 
Total Derivatives
 
$
71,319

 
$
119,110

 
$
82,778

 
$
106,800
Offsetting assets and liabilities
As of June 30, 2014 and December 31, 2013, information related to these offsetting arrangements were as follows (in thousands):
As of June 30, 2014
 
 
 
 
 
 
 
 
 
 
 
 
Description
 
Gross amounts of recognized assets/liabilities
 
Gross amount offset in the balance sheet
 
Net amounts of assets/liabilities in balance sheet
 
Gross amounts not offset in the balance sheet
 
Net amount
 
 
 
 
Financial Instruments
 
Cash Collateral Posted
 
Derivatives - Energy Related Assets
 
$
71,319

 
$
—

 
$
71,319

 
$
(27,113
)
(A)
$
—

 
$
44,206

Derivatives - Energy Related Liabilities
 
$
(110,370
)
 
$
—

 
$
(110,370
)
 
$
27,113

(B)
$
21,951

 
$
(61,306
)
Derivatives - Other
 
$
(8,740
)
 
$
—

 
$
(8,740
)
 
$
—

 
$
—

 
$
(8,740
)


As of December 31, 2013
 
 
 
 
 
 
 
 
 
 
 
 
Description
 
Gross amounts of recognized assets/liabilities
 
Gross amount offset in the balance sheet
 
Net amounts of assets/liabilities in balance sheet
 
Gross amounts not offset in the balance sheet
 
Net amount
 
 
 
 
Financial Instruments
 
Cash Collateral Posted
 
Derivatives - Energy Related Assets
 
$
82,778

 
$
—

 
$
82,778

 
$
(28,082
)
(A)
$
(498
)
 
$
54,198

Derivatives - Energy Related Liabilities
 
$
(100,124
)
 
$
—

 
$
(100,124
)
 
$
28,082

(B)
$
29,639

 
$
(42,403
)
Derivatives - Other
 
$
(6,676
)
 
$
—

 
$
(6,676
)
 
$
—

 
$
—

 
$
(6,676
)

(A) The balances at June 30, 2014 and December 31, 2013 were related to derivative liabilities which can be net settled against derivative assets.

(B) The balances at June 30, 2014 and December 31, 2013 were related to derivative assets which can be net settled against derivative liabilities.
Derivatives in cash flow hedging relationships
The effect of derivative instruments on the condensed consolidated statements of income for the six months ended June 30, 2014 and 2013 are as follows (in thousands):

 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
Derivatives in Cash Flow Hedging Relationships under GAAP
 
2014
 
2013
 
2014
 
2013
Interest Rate Contracts:
 
 
 
 
 
 
 
 
Losses recognized in AOCL on effective portion
 
$
—

 
$
—

 
$
—

 
$
—

Losses reclassified from AOCL into income (a)
 
$
(112
)
 
$
(112
)
 
$
(224
)
 
$
(224
)
Gains (losses) recognized in income on ineffective portion (a)
 
$
—

 
$
—

 
—

 
—


(a) Included in Interest Charges

 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
Derivatives Not Designated as Hedging Instruments under GAAP
 
2014
 
2013
 
2014
 
2013
Gains (losses) on energy related commodity contracts (a)
 
$
(195
)
 
$
(16,722
)
 
$
(28,796
)
 
$
(23,771
)
(Losses) gains on interest rate contracts (b)
 
(91
)
 
1,250

 
(305
)
 
1,775

 
 
 
 
 
 
 
 
 
Total
 
$
(286
)
 
$
(15,472
)
 
$
(29,101
)
 
$
(21,996
)

(a)  Included in Operating Revenues - Non Utility
(b)  Included in Interest Charges