Fair Value (Tables)

9 Months Ended

Sep. 30, 2015

Fair Value Inputs, Liabilities, Quantitative Information [Line Items]

Fair Value Inputs, Liabilities, Quantitative Information [Table Text Block]

The following table presents the quantitative information which was used to estimate the fair values of the Level 3 assets and liabilities above as of September 30, 2015 (dollars in thousands):

	Fair Value (Net) at
	September 30, 2015			Valuation Technique	Unobservable Input	Range
Power exchange agreement	$	(23,179	)	Surrogate facility pricing	O&M charges	$33.52-$43.65/MWh (1)
					Escalation factor	3% - 2016 to 2019
					Transaction volumes	392,608 - 397,030 MWhs
Power option agreement	(117		)	Black-Scholes- Merton	Strike price	$39.85/MWh - 2016
						$50.31/MWh - 2019
					Delivery volumes	157,517 - 286,307 MWhs
					Volatility rates	0.20 (2)
Natural gas exchange agreement	(4,743		)	Internally derived weighted average cost of gas	Forward purchase prices	$2.10 - $2.69/mmBTU
					Forward sales prices	$2.14 - $3.68/mmBTU
					Purchase volumes	125,000 - 310,000 mmBTUs
					Sales volumes	60,000 - 310,000 mmBTUs

Carrying Value and Estimated Fair Value of Financial Instruments

The following table sets forth the carrying value and estimated fair value of the Company’s financial instruments not reported at estimated fair value on the Condensed Consolidated Balance Sheets as of September 30, 2015 and December 31, 2014 (dollars in thousands):

	September 30, 2015				December 31, 2014
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Long-term debt (Level 2)	$	951,000	$	1,088,596	$	951,000	$	1,118,972
Long-term debt (Level 3)	492,000		505,343		492,000		527,663
Snettisham capital lease obligation (Level 3)	64,967		63,869		69,955		79,290
Nonrecourse long-term debt (Level 3)	—		—		1,431		1,440
Long-term debt to affiliated trusts (Level 3)	51,547		37,629		51,547		38,582

Fair Value of Assets And Liabilities Measured on Recurring Basis

	Level 1		Level 2		Level 3		Counterparty and Cash Collateral Netting (1)			Total
September 30, 2015
Assets:
Energy commodity derivatives	$	—	$	75,433	$	—	$	(74,534	)	$	899
Level 3 energy commodity derivatives:
Natural gas exchange agreement	—		—		692		(692		)	—
Foreign currency derivatives	—		8		—		(8		)	—
Interest rate swaps	—		1,002		—		(1,002		)	—
Deferred compensation assets:
Fixed income securities (2)	1,793		—		—		—			1,793
Equity securities (2)	5,753		—		—		—			5,753
Total	$	7,546	$	76,443	$	692	$	(76,236	)	$	8,445
Liabilities:
Energy commodity derivatives	$	—	$	98,253	$	—	$	(87,126	)	$	11,127
Level 3 energy commodity derivatives:
Natural gas exchange agreement	—		—		5,435		(692		)	4,743
Power exchange agreement	—		—		23,179		—			23,179
Power option agreement	—		—		117		—			117
Foreign currency derivatives	—		73		—		(8		)	65
Interest rate swaps	—		88,975		—		(37,272		)	51,703
Total	$	—	$	187,301	$	28,731	$	(125,098	)	$	90,934

	Level 1		Level 2		Level 3		Counterparty and Cash Collateral Netting (1)			Total
December 31, 2014
Assets:
Energy commodity derivatives	$	—	$	96,729	$	—	$	(95,204	)	$	1,525
Level 3 energy commodity derivatives:
Natural gas exchange agreement	—		—		1,349		(1,349		)	—
Foreign currency derivatives	—		1		—		(1		)	—
Interest rate swaps	—		966		—		(506		)	460
Funds held in trust account of Spokane Energy	1,600		—		—		—			1,600
Deferred compensation assets:
Fixed income securities (2)	1,793		—		—		—			1,793
Equity securities (2)	6,074		—		—		—			6,074
Total	$	9,467	$	97,696	$	1,349	$	(97,060	)	$	11,452
Liabilities:
Energy commodity derivatives	$	—	$	127,094	$	—	$	(110,714	)	$	16,380
Level 3 energy commodity derivatives:
Natural gas exchange agreement	—		—		1,384		(1,349		)	35
Power exchange agreement	—		—		23,299		—			23,299
Power option agreement	—		—		424		—			424
Interest rate swaps	—		77,568		—		(29,386		)	48,182
Foreign currency derivatives	—		21		—		(1		)	20
Total	$	—	$	204,683	$	25,107	$	(141,450	)	$	88,340

(1) The Company is permitted to net derivative assets and derivative liabilities with the same counterparty when a legally enforceable master netting agreement exists. In addition, the Company nets derivative assets and derivative liabilities against any payables and receivables for cash collateral held or placed with these same counterparties.

(2) These assets are trading securities and are included in other property and investments-net on the Condensed Consolidated Balance Sheets.

Reconciliation for All Assets Measured At Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3)

	Natural Gas Exchange Agreement			Power Exchange Agreement			Power Option Agreement			Total
Three months ended September 30, 2015:
Balance as of July 1, 2015	$	(6,825	)	$	(18,616	)	$	(145	)	$	(25,586	)
Total gains or losses (realized/unrealized):
Included in regulatory assets/liabilities (1)	1,800			(4,563		)	28			(2,735		)
Settlements	282			—			—			282
Ending balance as of September 30, 2015 (2)	$	(4,743	)	$	(23,179	)	$	(117	)	$	(28,039	)
Three months ended September 30, 2014:
Balance as of July 1, 2014	$	(2,183	)	$	(7,919	)	$	(605	)	$	(10,707	)
Total gains or losses (realized/unrealized):
Included in regulatory assets/liabilities (1)	712			(4,935		)	243			(3,980		)
Settlements	—			—			—			—
Ending balance as of September 30, 2014 (2)	$	(1,471	)	$	(12,854	)	$	(362	)	$	(14,687	)
Nine months ended September 30, 2015:
Balance as of January 1, 2015	$	(35	)	$	(23,299	)	$	(424	)	$	(23,758	)
Total gains or losses (realized/unrealized):
Included in regulatory assets/liabilities (1)	(5,586		)	(4,393		)	307			(9,672		)
Settlements	878			4,513			—			5,391
Ending balance as of September 30, 2015 (2)	$	(4,743	)	$	(23,179	)	$	(117	)	$	(28,039	)
Nine months ended September 30, 2014:
Balance as of January 1, 2014	$	(1,219	)	$	(14,441	)	$	(775	)	$	(16,435	)
Total gains or losses (realized/unrealized):
Included in regulatory assets/liabilities (1)	2,796			2,120			413			5,329
Settlements	(3,048		)	(533		)	—			(3,581		)
Ending balance as of September 30, 2014 (2)	$	(1,471	)	$	(12,854	)	$	(362	)	$	(14,687	)

(1) All gains and losses are included in other regulatory assets and liabilities. There were no gains and losses included in either net income or other comprehensive income during any of the periods presented in the table above.

(2) There were no purchases, issuances or transfers from other categories of any derivatives instruments during the periods presented in the table above.