INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2019

INTANGIBLE ASSETS

INTANGIBLE ASSETS

NOTE 4 – INTANGIBLE ASSETS

The December 2011 acquisition of TCP resulted in recording an intangible asset in the amount of $55.5 million related to a contractual obligation that TCP had to a third party under a purchase power agreement. The $55.5 million intangible asset represented the amount that the purchase power agreement contract terms were above market value at the acquisition date and was being amortized on a straight‑line basis over the remaining life of the purchase power agreement through June 30, 2019. The straight‑line method was consistent with the terms of the purchase power agreement as this contract was for a fixed amount of capacity at a fixed capacity rate that stayed constant over the term of the contract. The purchase power agreement intangible asset was amortized to other operating income as a reduction of the revenue generated by the purchase power agreement in the amount of $7.3 million in each of the years 2018 and 2017. The remaining $3.7 million was amortized to other operating income for the six-month period ending June 30, 2019.