Fair Value (Tables)

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

Schedule of 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, 2021 and December 31, 2020 (dollars in thousands):

	September 30, 2021				December 31, 2020
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Long-term debt (Level 2)	$	963,500	$	1,162,759	$	963,500	$	1,189,824
Long-term debt (Level 3)		1,130,000		1,263,916		1,060,000		1,235,248
Snettisham finance lease obligation (Level 3)		49,549		55,000		51,750		58,700
Long-term debt to affiliated trusts (Level 3)		51,547		43,815		51,547		43,815

Schedule of Fair Value of Assets and Liabilities Measured on Recurring Basis

The following table discloses by level within the fair value hierarchy the Company’s assets and liabilities measured and reported on the Condensed Consolidated Balance Sheets as of September 30, 2021 and December 31, 2020 at fair value on a recurring basis (dollars in thousands):

	Level 1		Level 2		Level 3		Counterparty and Cash Collateral Netting (1)			Total
September 30, 2021
Assets:
Energy commodity derivatives	$	—	$	75,059	$	—	$	(61,098	)	$	13,961
Level 3 energy commodity derivatives:
Natural gas exchange agreement		—		—		108		(108	)		—
Interest rate swap derivatives		—		4,549		—		(2,072	)		2,477
Deferred compensation assets:
Mutual Funds:
Fixed income securities (2)		1,888		—		—		—			1,888
Equity securities (2)		7,916		—		—		—			7,916
Total	$	9,804	$	79,608	$	108	$	(63,278	)	$	26,242
Liabilities:
Energy commodity derivatives	$	—	$	74,023	$	—	$	(73,441	)	$	582
Level 3 energy commodity derivatives:
Natural gas exchange agreement		—		—		11,157		(108	)		11,049
Foreign currency exchange derivatives		—		86		—		—			86
Interest rate swap derivatives		—		20,732		—		(2,072	)		18,660
Total	$	—	$	94,841	$	11,157	$	(75,621	)	$	30,377
December 31, 2020
Assets:
Energy commodity derivatives	$	—	$	23,645	$	—	$	(22,152	)	$	1,493
Level 3 energy commodity derivatives:
Natural gas exchange agreement		—		—		75		(75	)		—
Foreign currency exchange derivatives		—		30		—		—			30
Interest rate swap derivatives		—		952		—		(952	)		—
Deferred compensation assets:
Mutual Funds:
Fixed income securities (2)		2,471		—		—		—			2,471
Equity securities (2)		6,228		—		—		—			6,228
Total	$	8,699	$	24,627	$	75	$	(23,179	)	$	10,222
Liabilities:
Energy commodity derivatives	$	—	$	23,030	$	—	$	(22,768	)	$	262
Level 3 energy commodity derivatives:
Natural gas exchange agreement		—		—		8,485		(75	)		8,410
Interest rate swap derivatives		—		51,765		—		(9,002	)		42,763
Total	$	—	$	74,795	$	8,485	$	(31,845	)	$	51,435

(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 included in other property and investments-net and other non-current assets on the Condensed Consolidated Balance Sheets.

Schedule of Quantitative Information

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, 2021 (dollars in thousands):

	Fair Value (Net) at			Valuation	Unobservable	Range and Weighted
	September 30, 2021			Technique	Input	Average Price
Natural gas exchange agreement	$	(11,049	)	Internally derived weighted average cost of gas	Forward purchase	$2.41 - $3.83/mmBTU $2.92 Weighted Average
					Forward sales prices	$2.40 - $8.25/mmBTU $4.96 Weighted Average
					Purchase volumes	130,000 - 310,000 mmBTUs
					Sales volumes	75,000 - 310,000 mmBTUs

Schedule of Activity For Energy Commodity Derivative Assets (Liabilities) Measured At Fair Value Using Significant Unobservable Inputs (Level 3)

The following table presents activity for energy commodity derivative assets (liabilities) measured at fair value using significant unobservable inputs (Level 3) for the three and nine months ended September 30 (dollars in thousands):

	Natural Gas Exchange Agreement
Three months ended September 30, 2021:
Balance as of June 30, 2021	$	(6,078	)
Total gains or (losses) (realized/unrealized):
Included in regulatory assets/liabilities (1)		(4,971	)
Settlements		—
Ending balance as of September 30, 2021 (2)	$	(11,049	)
Three months ended September 30, 2020:
Balance as of June 30, 2020	$	(2,628	)
Total gains or (losses) (realized/unrealized):
Included in regulatory assets/liabilities (1)		(1,046	)
Settlements		—
Ending balance as of September 30, 2020 (2)	$	(3,674	)
Nine months ended September 30, 2021:
Balance as of December 31, 2020	$	(8,410	)
Total gains (realized/unrealized):
Included in regulatory assets/liabilities (1)		(1,482	)
Settlements		(1,157	)
Ending balance as of September 30, 2021 (2)	$	(11,049	)
Nine months ended September 30, 2020:
Balance as of December 31, 2019	$	(2,976	)
Total gains (realized/unrealized):
Included in regulatory assets/liabilities (1)		(952	)
Settlements		254
Ending balance as of September 30, 2020 (2)	$	(3,674	)

(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.