Derivative Financial Instruments

6 Months Ended

Jun. 30, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities Disclosure

Note 6 – Derivative Financial Instruments

The Company has entered into commodity swap contracts in order to reduce the commodity price risk related to natural gas prices. These commodity swap contracts set a fixed price that the Company will ultimately pay for quantities of natural gas specified in the contracts. The Company has not designated any of these commodity swaps contracts as hedging instruments.

The following table summarizes the commodity swap contracts entered into by the Company as of June 30, 2015. The Company will pay the fixed price listed for the volumes denoted in the table below. In exchange it will receive from a counterparty a variable payment based on the market price for the natural gas product listed for these volumes. These payments are settled monthly.

Product	Type	Contract Period	Volume	Price per MMBtu
IFERC Gas Market Report at Algonquin Citygate Natural Gas	Swap	4/1/15 - 4/30/15	2500 MMBtu/Day	$	13.000
IFERC Gas Market Report at Algonquin Citygate Natural Gas	Swap	5/1/15 - 5/31/15	1390 MMBtu/Day	$	13.000
IFERC Gas Market Report at Algonquin Citygate Natural Gas	Swap	6/1/15 - 6/30/15	950 MMBtu/Day	$	13.000
IFERC Gas Market Report at Algonquin Citygate Natural Gas	Swap	7/1/15 - 7/31/15	890 MMBtu/Day	$	13.000
AECO Canada - CGPR 7A Natural Gas	Swap	4/1/15 - 3/31/16	500 MMBtu/Day	$	2.420

The table below summarizes the amount of unrealized gain recognized as a component of Net income from the commodity swap contracts.

	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
Unrealized loss on commodity swap contracts not designated as hedging instruments	$	1,446,281	$	-	$	2,703,080	$	-
Deferred unrealized loss on commodity swap contracts (1)		(1,433,448)		-		(2,567,960)		-
Unrealized gain included in Other income, net	$	12,833	$	-	$	135,120	$	-

(1) Unrealized losses on commodity swap agreements incurred by the Company’s regulated subsidiaries have been deferred as a regulatory asset on the Company’s Condensed Consolidated Balance Sheet. See Note 7 - Regulatory Assets and Liabilities.

The table below shows the line item in the Company’s Condensed Consolidated Balance Sheets where the fair value of the commodity swap contracts is included.

Fair Value of Derivative Instruments

	Liabilities
		June 30,		December 31,
	Balance Sheet Location	2015		2014
Derivatives not designated as hedging instruments
Commodity swap contracts	Derivative instruments	$	320,190	$	3,023,271