Forward Contracts Classified as Derivatives (Tables)

6 Months Ended

Jun. 30, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of marking to market forward contracts for the purchase and sale of electricity

(in thousands)	June 30, 2013			December 31, 2012
Current Asset – Marked-to-Market Gain	$	1,180		$	502
Regulatory Asset – Current Deferred Marked-to-Market Loss		5,572			7,949
Regulatory Asset – Long-Term Deferred Marked-to-Market Loss		7,037			10,050
Total Assets		13,789			18,501
Current Liability – Marked-to-Market Loss		(13,294	)		(18,234	)
Regulatory Liability – Current Deferred Marked-to-Market Gain		(19	)		(8	)
Regulatory Liability – Long-Term Deferred Marked-to-Market Gain		(436	)		(210	)
Total Liabilities		(13,749	)		(18,452	)
Net Fair Value of Marked-to-Market Energy Contracts	$	40		$	49

Schedule of change in consolidated balance sheet location and Fair values of forward contracts for purchase and sale of electricity

(in thousands)	Year-to-Date June 30, 2013			Year-to-Date June 30, 2012
Cumulative Fair Value Adjustments Included in Earnings - Beginning of Year	$	49		$	894
Less: Amounts Realized on Settlement of Contracts Entered into in Prior Periods		(49	)		(700	)
Changes in Fair Value of Contracts Entered into in Prior Periods		--			(33	)
Cumulative Fair Value Adjustments in Earnings of Contracts Entered into in Prior Years at End of Period		--			161
Changes in Fair Value of Contracts Entered into in Current Period		40			(30	)
Cumulative Fair Value Adjustments Included in Earnings - End of Period	$	40		$	131

Schedule of unrealized net gains on the forward energy and capacity purchases and sales

(in thousands)	3rd Qtr 2013		Total
Net Gain	$	40	$	40

Schedule of realized and unrealized net gains on forward energy contracts

	Three Months Ended					Six Months Ended
	June 30,					June 30,
(in thousands)	2013		2012			2013		2012
Net Gains (Losses) on Forward Electric Energy Contracts	$	28	$	(50	)	$	254	$	144

Schedule of OTP's credit risk exposure on delivered and marked-to-market forward contracts

	June 30, 2013				December 31, 2012
(in thousands)	Exposure		Counterparties		Exposure		Counterparties
Net Credit Risk on Forward Energy Contracts	$	1,290		3	$	580		6
Net Credit Risk to Single Largest Counterparty	$	850			$	285

Schedule of derivative asset and derivative liability balances

(in thousands)	June 30, 2013			December 31, 2012
Derivative assets subject to legally enforceable netting arrangements	$	1,274		$	638
Derivative liabilities subject to legally enforceable netting arrangements		(13,294	)		(18,234	)
Net balance subject to legally enforceable netting arrangements	$	(12,020	)	$	(17,596	)

Schedule of breakdown of OTP's credit risk standing on forward energy contracts in marked-to-market loss positions

Current Liability – Marked-to-Market Loss  (in thousands)	June 30, 2013			December 31, 2012
Loss Contracts Covered by Deposited Funds or Letters of Credit	$	--		$	2,176
Contracts Requiring Cash Deposits if OTP’s Credit Falls Below Investment Grade1		13,294			16,058
Loss Contracts with No Ratings Triggers or Deposit Requirements		--			--
Total Current Liability – Marked-to-Market Loss	$	13,294		$	18,234
1Certain OTP derivative energy contracts contain provisions that require an investment grade credit rating from each of the major credit rating agencies on OTP’s debt. If OTP’s debt ratings were to fall below investment grade, the counterparties to these forward energy contracts could request the immediate deposit of cash to cover contracts in net liability positions.
Contracts Requiring Cash Deposits if OTP’s Credit Falls Below Investment Grade	$	13,294		$	16,058
Offsetting Gains with Counterparties under Master Netting Agreements		(917	)		(416	)
Reporting Date Deposit Requirement if Credit Risk Feature Triggered	$	12,377		$	15,642