Financial instruments (Tables)

12 Months Ended

Dec. 31, 2015

Fair value of financial instruments



2015	Carrying amount		Fair Value		Level 1		Level 2		Level 3
Notes receivable	$	119,383	$	126,468	$	—	$	126,468	$	—
Derivative financial instruments:
Energy contracts designated as a cash flow hedge	88,357		88,357		—		—		88,357
Commodity contracts for regulated operations	4		4		—		4		—
Total derivative financial instruments	88,361		88,361		—		4		88,357
Total financial assets	$	207,744	$	214,829	$	—	$	126,472	$	88,357
Long-term debt	$	1,486,795	$	1,547,346	$	511,829	$	1,035,517	$	—
Preferred shares, Series C	18,527		17,303		—		17,303		—
Derivative financial instruments:
Energy contracts designated as a cash flow hedge	446		446		—		—		446
Cross-currency swap designated as a net investment hedge	101,559		101,559		—		101,559		—
Interest rate swap designated as a hedge	9,659		9,659		—		9,659		—
Currency forward contract not designated as a hedge	1,918		1,918		—		1,918		—
Commodity contracts for regulated operations	1,676		1,676		—		1,676		—
Total derivative financial instruments	115,258		115,258		—		114,812		446
Total financial liabilities	$	1,620,580	$	1,679,907	$	511,829	$	1,167,632	$	446


24.	Financial instruments (continued)

(a)Fair value of financial instruments (continued)



2014	Carrying amount		Fair Value		Level 1		Level 2		Level 3
Notes receivable	$	39,510	$	41,339	$	—	$	41,339	$	—
Derivative financial instruments:
Energy contracts designated as a cash flow hedge	41,966		41,966		—		—		41,966
Energy contracts not designated as a cash flow hedge	504		504		—		—		504
Total derivative financial instruments	42,470		42,470		—		—		42,470
Total financial assets	$	81,980	$	83,809	$	—	$	41,339	$	42,470
Long-term debt	$	1,271,719	$	1,363,934	$	520,142	$	843,792	$	—
Preferred shares, Series C	18,693		18,209		—		18,209		—
Derivative financial instruments:
Cross-currency swap designated as a net investment hedge	36,276		36,276		—		36,276		—
Interest rate swaps designated as a hedge	4,684		4,684		—		4,684		—
Interest rate swaps not designated as a hedge	1,383		1,383		—		1,383		—
Commodity contracts for regulated operations	2,928		2,928		—		2,928		—
Total derivative financial instruments	45,271		45,271		—		45,271		—
Total financial liabilities	$	1,335,683	$	1,427,414	$	520,142	$	907,272	$	—

Summary of Commodity Volumes Associated with Derivative Contracts

The following are commodity volumes, in dekatherms (“dths”) associated with the above derivative contracts:



	2015
Financial contracts: Gas swaps	1,086,228
Gas options	412,369
	1,498,597

Impact of Change in Fair Value of Natural Gas Derivative Contracts

The following table presents the impact of the change in the fair value of the Company’s natural gas derivative contracts had on the consolidated balance sheets:



		2015			2014
Regulatory assets:
Gas swap contracts	U.S.	$	1,058	U.S.	$	2,178
Gas option contracts	U.S.	$	154	U.S.	$	346
Regulatory liabilities:
Gas swap contracts	U.S.	$	3	U.S.	$	—
Gas option contracts	U.S.	$	—	U.S.	$	—

Long-Term Energy Derivative Contracts

The Company reduces the price risk on the expected future sale of power generation at Sandy Ridge, Senate and Minonk Wind Facilities and at one of its hydro facilities no longer subject to a power purchase agreement by entering into the following long-term energy derivative contracts.



Notional quantity (MW-hrs)	Expiry	Receive average prices (per MW-hr)		Pay floating price (per MW-hr)
49,135	December 2016	$	68.56	AESO
801,098	December 2022	U.S. $	42.81	PJM Western HUB
3,419,634	December 2022	U.S. $	30.25	NI HUB
3,997,509	December 2027	U.S. $	36.46	ERCOT North HUB

Derivative Financial Instruments Designated as Cash Flow Hedge, Effect on Consolidated Statement of Operations

The following table summarizes OCI attributable to derivative financial instruments designated as a cash flow hedge:



	2015			2014

Effective portion of cash flow hedge, loss (gain)	$	21,932		$	(2,592	)
Amortization of cash flow hedge	(36		)	(32		)
Loss (gain) reclassified from AOCI	(5,731		)	5,423
	$	16,165		$	2,799
Less non-controlling interest	—			5,982
OCI attributable to shareholders of APUC	$	16,165		$	8,781

Effects on Statement of Operations of Derivative Financial Instruments Not Designated as Hedges

The effects on the consolidated statements of operations of derivative financial instruments not designated as hedges consist of the following:



	2015			2014
Change in unrealized loss (gain) on derivative financial instruments:
Interest rate swaps	$	(1,383	)	$	(1,797	)
Energy derivative contracts	886			3,386
Currency forward contract	1,918			—
Total change in unrealized loss (gain) on derivative financial instruments	$	1,421		$	1,589
Realized loss (gain) on derivative financial instruments:
Interest rate swaps	1,498			1,962
Energy derivative contracts	(579		)	(3,627		)
Total realized loss (gain) on derivative financial instruments	$	919		$	(1,665	)
Loss (gain) on derivative financial instruments not accounted for as hedges	2,340			(76		)
Ineffective portion of derivative financial instruments accounted for as hedges	(2,610		)	1,451
	$	(270	)	$	1,375
Amounts recognized in the consolidated statements of operations consist of:
Loss (gain) on derivative financial instruments	$	(2,188	)	$	1,375
Loss on foreign exchange	$	1,918		$	—
	$	(270	)	$	1,375

Maximum Credit Risk Exposure for Financial Instruments

As of December 31, 2015, the Company’s maximum exposure to credit risk for these financial instruments was as follows:



	December 31, 2015
	Canadian $		US $
Cash and cash equivalents and restricted cash	$	39,972	$	74,696
Accounts receivable	15,016		129,791
Allowance for doubtful accounts			(5,756		)
Notes receivable	19,664		72,052
	$	74,652	$	270,783

Liabilities Maturity Profile

The Company’s liabilities mature as follows:



	Due less than 1 year		Due 2 to 3 years		Due 4 to 5 years		Due after 5 years		Total
Long-term debt obligations	$	8,945	$	222,810	$	187,582	$	1,076,786	$	1,496,123
Advances in aid of construction	1,347		—		—		90,938		92,285
Interest on long-term debt	74,324		138,841		117,328		333,606		664,099
Purchase obligations	243,748		—		—		—		243,748
Environmental obligation	5,435		41,494		1,753		29,813		78,495
Derivative financial instruments:
Cross-currency swap	4,828		8,963		7,508		80,260		101,559
Interest rate swaps	—		9,659		—		—		9,659
Currency forward	1,918		—		—		—		1,918
Energy derivative and commodity contracts	1,885		237		—		—		2,122
Other obligations	12,808		—		—		40,694		53,502
Total obligations	$	355,238	$	422,004	$	314,171	$	1,652,097	$	2,743,510

- Definition

Tabular disclosure of credit derivatives which includes information by sellers of credit derivatives, about each credit derivative, or each group of similar credit derivatives, including (a) the nature of the credit derivative - its term, how it arose, the events or circumstances that would require the seller to perform under the credit derivative, and the current status of the payment/performance risk of the credit derivative; (b) the maximum potential amount of future payments (undiscounted) the seller could be required to make under the credit derivative; (c) the current fair value of the credit derivative; and (d) the nature of any recourse provisions under the credit derivative, and any assets held either as collateral or by third parties. A credit derivative is a derivative instrument (1) in which one or more of its underlyings are related to the credit risk of a specified entity (or a group of entities) or an index based on the credit risk of a group of entities and (2) that exposes the seller to potential loss from credit-risk-related events specified in the contract. Examples of credit derivatives within the scope of this paragraph include, but are not limited to, credit default swaps, credit spread options, and credit index products; also includes a hybrid instrument that has an embedded credit derivative (for example, but not limited to, a credit-linked note).

+ References + Details

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References

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