5. Open Contract Positions Subject to Legally Enforceable Netting Arrangements

OTP has certain derivative contracts that are designated as normal purchases. Individual counterparty exposures for these contracts can be offset according to legally enforceable netting arrangements. The following table shows forward contract fair value positions subject to legally enforceable netting arrangements as of September 30, 2016 and December 31, 2015:

(in thousands)	September 30, 2016			December 31, 2015
Open Contract Gain Positions Subject to Legally Enforceable Netting Arrangements	$	—		$	—
Open Contract Loss Positions Subject to Legally Enforceable Netting Arrangements		(15,220	)		(16,070	)
Net Balance Subject to Legally Enforceable Netting Arrangements	$	(15,220	)	$	(16,070	)

The following table provides a breakdown of OTP’s credit risk standing on forward energy contracts in loss positions as of September 30, 2016 and December 31, 2015:

Loss Position (in thousands)	September 30, 2016		December 31, 2015
Loss Contracts Covered by Deposited Funds or Letters of Credit	$	49	$	199
Contracts Requiring Cash Deposits if OTP’s Credit Falls Below Investment Grade¹		15,171		15,871
Loss Contracts with No Ratings Triggers or Deposit Requirements		—		—
Loss Position	$	15,220	$	16,070
¹ Certain 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	$	15,171	$	15,871
Offsetting Gains with Counterparties under Master Netting Agreements		—		—
Reporting Date Deposit Requirement if Credit Risk Feature Triggered	$	15,171	$	15,871