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DERIVATIVE INSTRUMENTS
 6 Months Ended
Jun. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE INSTRUMENTS DERIVATIVE INSTRUMENTS
We use derivatives as part of our risk management program to manage the risks associated with the price volatility of purchased power, generation, and natural gas costs for the benefit of our customers. Our approach is non-speculative and designed to mitigate risk. Our regulated hedging programs are approved by the PSCW.

We record derivative instruments on our balance sheets as an asset or liability measured at fair value unless they qualify for the normal purchases and sales exception and are so designated. We continually assess our contracts designated as normal and will discontinue the treatment of these contracts as normal if the required criteria are no longer met. Changes in the derivative's fair value are recognized currently in earnings unless specific hedge accounting criteria are met or we receive regulatory treatment for
the derivative. For most energy-related physical and financial contracts in our regulated operations that qualify as derivatives, the PSCW allows the effects of fair value accounting to be offset to regulatory assets and liabilities.

On our balance sheets, we classify derivative assets and liabilities as current or long-term based on the maturities of the underlying contracts. 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 are designated as hedging instruments.
 June 30, 2025December 31, 2024
(in millions)Derivative
Assets		Derivative
Liabilities		Derivative
Assets		Derivative
Liabilities
Current
Natural gas contracts$7.1 $2.3 $5.8 $0.9 
FTRs6.3 — 2.0 — 
Total current 13.4 2.3 7.8 0.9 
Long-term
Natural gas contracts0.1 — 0.3 — 
Total$13.5 $2.3 $8.1 $0.9 

Realized gains and losses on derivatives are primarily 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 fuel and natural gas cost recovery mechanisms. Our estimated notional sales volumes and realized gains and losses were as follows:
Three Months Ended June 30, 2025Three Months Ended June 30, 2024
(in millions)VolumesGainsVolumesGains (Losses)
Natural gas contracts
6.5 Dth
$0.1 
9.7 Dth
$(4.6)
FTRs
1.9 MWh
1.6 
2.1 MWh
0.4 
Total$1.7 $(4.2)
Six Months Ended June 30, 2025Six Months Ended June 30, 2024
(in millions)VolumesGainsVolumesGains (Losses)
Natural gas contracts
18.8 Dth
$0.8 
24.1 Dth
$(12.9)
FTRs
4.2 MWh
2.2 
4.2 MWh
0.3 
Total$3.0 $(12.6)

On our balance sheets, the amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral are not offset against the fair value amounts recognized for derivative instruments executed with the same counterparty under the same master netting arrangement. At June 30, 2025 and December 31, 2024, we had posted cash collateral of $5.5 million and $5.7 million, respectively. These amounts were recorded on our balance sheets in other current assets. At June 30, 2025 and December 31, 2024, we had also received cash collateral of $0.1 million and $1.1 million, respectively. These amounts were recorded on our balance sheets in other current liabilities.

The following table shows derivative assets and derivative liabilities if derivative instruments by counterparty were presented net on our balance sheets:
June 30, 2025December 31, 2024
(in millions)Derivative
Assets		Derivative
Liabilities		Derivative
Assets		Derivative
Liabilities
Gross amount recognized on the balance sheet$13.5 $2.3 $8.1 $0.9 
Gross amount not offset on the balance sheet(1.4)
(1)
(1.3)(1.6)
(2)
(0.5)
Net amount$12.1 $1.0 $6.5 $0.4 

(1)    Includes cash collateral received of $0.1 million.
(2)    Includes cash collateral received of $1.1 million.