XML 86 R20.htm IDEA: XBRL DOCUMENT

Fair Value Measurements

12 Months Ended

Dec. 31, 2019

The following tables summarize our financial assets and liabilities that were accounted for at fair value on a recurring basis, categorized by level within the fair value hierarchy:



	December 31, 2019
(in millions)	Level 1		Level 2		Level 3		Total
Derivative assets
Natural gas contracts	$	0.4	$	—	$	—	$	0.4
FTRs	—		—		1.5		1.5
Coal contracts	—		0.1		—		0.1
Total derivative assets	$	0.4	$	0.1	$	1.5	$	2.0

Derivative liabilities
Natural gas contracts	$	5.2	$	—	$	—	$	5.2
Coal contracts	—		0.2		—		0.2
Total derivative liabilities	$	5.2	$	0.2	$	—	$	5.4



	December 31, 2018
(in millions)	Level 1		Level 2		Level 3		Total
Derivative assets
Natural gas contracts	$	0.7	$	—	$	—	$	0.7
FTRs	—		—		4.4		4.4
Total derivative assets	$	0.7	$	—	$	4.4	$	5.1

Derivative liabilities
Natural gas contracts	$	1.2	$	—	$	—	$	1.2
Coal contracts	—		0.1		—		0.1
Total derivative liabilities	$	1.2	$	0.1	$	—	$	1.3

The derivative assets and liabilities listed in the tables above include options, futures, physical commodity contracts, and other instruments used to manage market risks related to changes in commodity prices. They also include FTRs, which are used to manage electric transmission congestion costs in the MISO Energy Markets.

The following table summarizes the changes to derivatives classified as Level 3 in the fair value hierarchy at December 31:



(in millions)	2019			2018			2017
Balance at the beginning of the period	$	4.4		$	2.4		$	3.1
Purchases	6.8			9.4			6.9
Settlements	(9.7		)	(7.4		)	(7.6		)
Balance at the end of the period	$	1.5		$	4.4		$	2.4

Fair Value of Financial Instruments

The following table shows the financial instruments included on our balance sheets that are not recorded at fair value:



	December 31, 2019				December 31, 2018
(in millions)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Preferred stock	$	30.4	$	29.5	$	30.4	$	28.3
Long-term debt, including current portion	2,759.2		3,209.5		2,709.6		2,881.6

The fair values of our long-term debt and preferred stock are categorized within Level 2 of the fair value hierarchy.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details