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Risk Management and Derivatives (Tables)
 3 Months Ended
Mar. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Contract or notional amounts and terms of marketing activities and derivative commodity instruments We had the following net long positions as of:
 
 
March 31, 2020
 
December 31, 2019
 
Units
Notional
Amounts
 
Maximum
Term
(months) (a)
 
Notional
Amounts
 
Maximum
Term
(months) (a)
Natural gas futures purchased
MMBtus
920,000

 
9
 
1,450,000

 
12
Natural gas options purchased, net
MMBtus
—

 
0
 
3,240,000

 
3
Natural gas basis swaps purchased
MMBtus
790,000

 
9
 
1,290,000

 
12
Natural gas over-the-counter swaps, net (b)
MMBtus
4,620,000

 
26
 
4,600,000

 
24
Natural gas physical contracts, net (c)
MMBtus
1,104,725

 
12
 
13,548,235

 
12
Electric wholesale contracts (c)
MWh
195,825

 
9
 
—

 
0
__________
(a)
Term reflects the maximum forward period hedged.
(b)
As of March 31, 2020, 800,000 MMBtus of natural gas over-the-counter swaps purchases were designated as cash flow hedges.
(c)
Volumes exclude contracts that qualify for the normal purchases and normal sales exception.

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value
The following table presents the fair value and balance sheet classification of our derivative instruments (in thousands) as of:
 
Balance Sheet Location
 
March 31, 2020
December 31, 2019
Derivatives designated as hedges:
 
 
 
 
Asset derivative instruments:
 
 
 
 
Current commodity derivatives
Derivative assets, current
 
$
8

$
1

Noncurrent commodity derivatives
Other assets, non-current
 
—

3

Liability derivative instruments:
 
 
 
 
Current commodity derivatives
Derivative liabilities, current
 
(284
)
(490
)
Noncurrent commodity derivatives
Other deferred credits and other liabilities
 
(10
)
(29
)
Total derivatives designated as hedges
 
 
$
(286
)
$
(515
)
 
 
 
 
 
Derivatives not designated as hedges:
 
 
 
 
Asset derivative instruments:
 
 
 
 
Current commodity derivatives
Derivative assets, current
 
$
1,772

$
341

Noncurrent commodity derivatives
Other assets, non-current
 
156

2

Liability derivative instruments:
 
 
 
 
Current commodity derivatives
Derivative liabilities, current
 
(568
)
(1,764
)
Noncurrent commodity derivatives
Other deferred credits and other liabilities
 
(28
)
(63
)
Total derivatives not designated as hedges
 
 
$
1,332

$
(1,484
)
Derivative Instruments, Gain (Loss)
The impacts of cash flow hedges on our Condensed Consolidated Statements of Comprehensive Income and Condensed Consolidated Statements of Income are presented below for the three months ended March 31, 2020 and 2019. Note that this presentation does not reflect gains or losses arising from the underlying physical transactions; therefore, it is not indicative of the economic profit or loss we realized when the underlying physical and financial transactions were settled.
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31,
 
Three Months Ended March 31,
 
2020
2019
 
2020
2019
Derivatives in Cash Flow Hedging Relationships
Amount of (Gain)/Loss Recognized in OCI
Income Statement Location
Amount of Gain/(Loss) Reclassified from AOCI into Income
 
(in thousands)
 
(in thousands)
Interest rate swaps
$
713

$
713

Interest expense
$
(713
)
$
(713
)
Commodity derivatives
257

(320
)
Fuel, purchased power and cost of natural gas sold
(486
)
554

Total
$
970

$
393

 
$
(1,199
)
$
(159
)

Based on March 31, 2020 prices, a $0.3 million gain would be realized, reported in pre-tax earnings and reclassified from AOCI during the next 12 months. As market prices fluctuate, estimated and actual realized gains or losses will change during future periods.

Derivatives Not Designated as Hedges

The following table summarizes the impacts of derivative instruments not designated as hedge instruments on our Condensed Consolidated Statements of Income for the three months ended March 31, 2020 and 2019. Note that this presentation does not reflect gains or losses arising from the underlying physical transactions; therefore, it is not indicative of the economic profit or loss we realized when the underlying physical and financial transactions were settled.
 
 
 
 
 
 
 
Three Months Ended March 31,
 
 
2020
2019
Derivatives Not Designated as Hedging Instruments
Income Statement Location
Amount of Gain/(Loss) on Derivatives Recognized in Income
 
 
(in thousands)
Commodity derivatives - Electric
Fuel, purchased power and cost of natural gas sold
$
1,362

$
—

Commodity derivatives - Natural Gas
Fuel, purchased power and cost of natural gas sold
766

25

 
 
$
2,128

$
25