Risk Management and Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2013

Risk Management and Derivative Financial Instruments

Schedule of fair value of derivative financial instruments, balance sheet classification

As of March 31, 2013 and December 31, 2012, we have recorded the following assets and liabilities representing the fair value of derivative financial instruments, (in thousands):

ASSET DERIVATIVES		March 31,		December 31,
Non-designated hedging		2013		2012
instruments due to regulatory accounting	Balance Sheet Classification	Fair Value		Fair Value
Natural gas contracts, gas segment	Current assets	$	79	$	3
	Non-current assets and deferred charges - other	—		17
Natural gas contracts, electric segment	Current assets	821		93
	Non-current assets and deferred charges	256		174
Total derivatives assets		$	1,156	$	287

LIABILITY DERIVATIVES
Non-designated as hedging instruments		March 31,		December 31,
due to regulatory accounting		2013		2012
Natural gas contracts, gas segment	Current liabilities	$	—	$	104
Natural gas contracts, electric segment	Current liabilities	1,905		3,299
	Non-current liabilities and deferred credits	3,307		3,819
Total derivatives liabilities		$	5,212	$	7,222

Schedule of mark-to-market pre-tax gains/(losses) from non-designated derivative instruments - electric segment

The following tables set forth “mark-to-market” pre-tax gains/(losses) from non-designated derivative instruments for the electric segment for each of the periods ended March 31, (in thousands):

Non-Designated Hedging Instruments	Balance Sheet	Amount of Gain / (Loss) Recognized on Balance  Sheet
— Due to Regulatory Accounting	Classification of Gain /	Three Months Ended					Twelve Months Ended
Electric Segment	(Loss) on Derivative	2013		2012			2013			2012
Commodity contracts	Regulatory (assets)/liabilities	$	2,421	$	(2,302	)	$	(2,275	)	$	(9,899	)
Total Electric Segment		$	2,421	$	(2,302	)	$	(2,275	)	$	(9,899	)

Non-Designated Hedging Instruments	Statement of Income	Amount of Gain / (Loss) Recognized in Income  on Derivative
— Due to Regulatory Accounting	Classification of Gain /	Three Months Ended						Twelve Months Ended
Electric Segment	(Loss) on Derivative	2013			2012			2013			2012
Commodity contracts	Fuel and purchased power expense	$	(114	)	$	(24	)	$	(4,075	)	$	(2,416	)
Total Electric Segment		$	(114	)	$	(24	)	$	(4,075	)	$	(2,416	)

Schedule of volumes and percentage of anticipated volume of natural gas usage for entity's electric operations

			Dth Hedged
Year	% Hedged		Physical	Financial	Average Price
Remainder 2013	60	%	1,630,000	3,050,000	$	5.146
2014	39	%	460,000	3,540,000	$	4.741
2015	20	%		1,910,000	$	4.928
2016	10	%	—	1,000,000	$	4.410
2017	—		—	—	—

Schedule of minimum percentage hedged by year in the entity's procurement guidelines

Year	Minimum % Hedged
Current	Up to 100%
First	60%
Second	40%
Third	20%
Fourth	10%

Schedule of minimum percentage of winter season usage hedged by year of the entity's gas operations

The following table sets forth our long-term hedge strategy of mitigating price volatility for our customers by hedging a minimum of expected gas usage for the current winter season and the next two winter seasons by the beginning of the Actual Cost Adjustment (ACA) year at September 1 and illustrates our hedged position as of March 31, 2013 (in thousands).

Season	Minimum % Hedged	Dth Hedged —  Financial	Dth Hedged —  Physical	Dth in Storage	Actual %  Hedged
Current	50%	160,000	22,246	190,358	12	%
Second	Up to 50%		—	—	—
Third	Up to 20%	—	—	—	—
Total		160,000	22,246	190,358

Schedule of non-designated hedging instruments due to regulatory accounting - gas segment

The following table sets forth “mark-to-market” pre-tax gains / (losses) from derivatives not designated as hedging instruments for the gas segment for each of the periods ended March 31, (in thousands).

Non-Designated Hedging	Balance Sheet	Amount of Gain / (Loss) Recognized on Balance Sheet
Instruments Due to Regulatory	Classification of Gain or	Three Months Ended					Twelve Months Ended
Accounting — Gas Segment	(Loss) on Derivative	2013		2012			2013		2012
Commodity contracts	Regulatory (assets)/liabilities	$	95	$	(655	)	$	289	$	(2,475	)
Total - Gas Segment		$	95	$	(655	)	$	289	$	(2,475	)

Schedule of margin deposit assets

(in millions)	March 31, 2013		December 31, 2012
Margin deposit assets	$	3.1	$	4.2