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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
 12 Months Ended
Dec. 31, 2023
Accounting Policies [Abstract]  
Schedule of Regulatory Assets and Liabilities
Regulatory assets and liabilities are as follows (dollars in thousands):
December 31,
2023		December 31,
2022
Regulatory assets
Deferred income tax expense (1)$15,223 $19,279 
Deferred prepaid lease expense – Springerville Unit 3 Lease (2)74,551 76,842 
Goodwill – J.M. Shafer (3)37,749 40,598 
Goodwill – Colowyo Coal (4)33,062 34,095 
Deferred debt prepayment transaction costs (5)106,417 115,045 
Deferred Holcomb expansion impairment loss (6)74,795 79,470 
New Horizon Mine environmental obligation (7)44,869 — 
Unrecovered plant (8)532,817 285,092 
Total regulatory assets919,483 650,421 
Regulatory liabilities
Interest rate swap - realized gain (9) and other1,854 2,341 
Membership withdrawal (10)463 47,590 
Total regulatory liabilities2,317 49,931 
Net regulatory asset$917,166 $600,490 
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(1)A regulatory asset or liability associated with deferred income taxes generally represents the future increase or decrease in income taxes payable that will be received or settled through future rate revenues.
(2)Represents deferral of the loss on acquisition related to the Springerville Generating Station Unit 3 (“Springerville Unit 3”) prepaid lease expense upon acquiring a controlling interest in the Springerville Unit 3 Partnership LP (“Springerville Partnership”) in 2009. The regulatory asset for the deferred prepaid lease expense is being amortized to depreciation, amortization and depletion expense in the amount of $2.3 million annually through the 47-year period ending in 2056 and recovered from our Utility Members in rates.
(3)Represents goodwill related to our acquisition of Thermo Cogeneration Partnership, LP (“TCP”) in December 2011. Goodwill is being amortized to depreciation, amortization and depletion expense in the amount of $2.8 million annually through the 25-year period ending in 2036 and recovered from our Utility Members in rates.
(4)Represents goodwill related to our acquisition of Colowyo Coal Company LP (“Colowyo Coal”) in December 2011. Goodwill is being amortized to depreciation, amortization and depletion expense in the amount of $1.0 million annually through the 44-year period ending in 2056 and recovered from our Utility Members in rates.
(5)Represents transaction costs that we incurred related to the prepayment of our long-term debt in 2014. These costs are being amortized to depreciation, amortization and depletion expense in the amount of $8.6 million annually over the 21.4-year period ending in 2036 and recovered from our Utility Members in rates.
(6)Represents deferral of the impairment loss related to development costs, including costs for the option to purchase development rights for the expansion of the Holcomb Generating Station. The regulatory asset for the deferred impairment loss is being amortized to other operating expenses in the amount of $4.7 million annually over the 20-year period ending in 2039 and recovered from our Utility Members in rates.
(7)Represents $44.9 million of New Horizon Mine environmental obligation expense that was recorded in 2022 and reversed as a regulatory item in 2023 as part of our June 2023 Class A rate schedule (A-41) filing with FERC with a planned January 1, 2024 effective date. The regulatory asset for the deferred environmental obligation expense will be amortized to expense in the amount of $1.8 million annually over 25 years beginning in 2024 through 2048 and recovered from our Utility Members in rates.
(8)Represents deferral of the impairment losses and other closure costs related to the early retirement of the Escalante, Rifle and Craig Generating Station Units 2 and 3. The deferred impairment loss for Escalante Generating Station is being amortized to depreciation, amortization and depletion expense in the amount of $12.2 million annually over the 25-year period ending in 2045, which was the depreciable life of Escalante Generating Station, and recovered from our Utility Members through rates. The annual amortization approximates the former annual Escalante Generating Station depreciation for the remaining life of the asset. The deferred impairment loss for Rifle Generating Station is being amortized to depreciation, amortization and depletion expense in the amount of $0.6 million annually through 2028, which was the depreciable life of the Rifle Generating Station, and recovered from our Utility Members in rates. Because of our June 2023 Class A rate schedule (A-41) filing that uses a formula rate and the during evaluation of the probability of such
filing as part of preparing these financial statements, we recognized the early retirement of Craig Station Units 2 and 3 that is part of our rate filing with FERC and thus we concluded the impairment of incurred costs is probable of recovery through future rates. We recognized an impairment loss of $261.6 million and deferred the loss in accordance with accounting for rate regulation. The deferred impairment loss will be amortized to depreciation, amortization and depletion expense beginning in October 2028 through 2039 for Craig Generating Station Unit 2 and January 2030 through 2043 for Craig Generating Station Unit 3. These amortization periods are the depreciable lives of Craig Generating Station Unit 2 and 3. The annual amortization is expected to approximate the former annual Craig Generation Station Unit 2 and 3 depreciation for the remaining life of the asset.
(9)Represents deferral of a realized gain of $4.6 million related to the October 2017 settlement of a forward starting interest rate swap. This realized gain was deferred as a regulatory liability and is being amortized to interest expense over the 12-year term of the First Mortgage Obligations, Series 2017A and refunded to Utility Members through reduced rates when recognized in future periods.
(10)Represents the deferral of the recognition of other operating revenues related to the withdrawal of former Utility Members from membership in us. The deferred membership withdrawal income will be refunded to Utility Members through reduced rates when recognized in operating revenues. During 2023, $47.1 million was recognized in operating revenues as part of our rate stabilization measures.
Schedule of Investments in Other Associations
Investments in other associations are as follows (dollars in thousands):
December 31,
2023		December 31,
2022
Basin Electric Power Cooperative$135,652 $127,640 
National Rural Utilities Cooperative Finance Corporation - patronage capital12,451 12,172 
National Rural Utilities Cooperative Finance Corporation - capital term certificates15,054 15,054 
CoBank, ACB18,809 16,727 
Other5,718 5,884 
Investments in other associations$187,684 $177,477 
Schedule of Other Deferred Charges
Other deferred charges are as follows (dollars in thousands):
December 31,
2023		December 31,
2022
Preliminary surveys and investigations$12,845 $13,048 
Advances to operating agents of jointly owned facilities2,750 7,324 
Operating lease right-of-use assets6,477 6,771 
Other14,049 13,302 
Total other deferred charges$36,121 $40,445 
Schedule of Other Deferred Credits and Other Liabilities
The following other deferred credits and other liabilities are reflected on our consolidated statements of financial position (dollars in thousands):
December 31,
2023		December 31,
2022
Transmission easements$17,862 $18,636 
OATT deposits27,872 17,476 
Financial liabilities - reclamation16,895 12,429 
Customer deposits12,091 8,616 
Contract liabilities (unearned revenue) - noncurrent3,125 3,765 
Operating lease liabilities - noncurrent1,396 1,251 
Other4,884 6,201 
Total other deferred credits and other liabilities$84,125 $68,374