DERIVATIVE FINANCIAL INSTRUMENTS: Derivative Financial Instruments Level 3 (Tables)

12 Months Ended

Dec. 31, 2019

General Discussion of Derivative Instruments and Hedging Activities [Abstract]

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

The table below presents the gains and losses on derivatives not designated as hedging instruments for the years ended December 31, 2019, 2018, and 2017 (in thousands of dollars):

	Location of Realized Gain/(Loss) on Derivatives Recognized in Income	Gain/(Loss) on Derivatives Recognized in Income(1)
		2019			2018			2017
Financial swaps	Operating revenues	$	904		$	1,316		$	902
Financial swaps	Purchased power	(2,183		)	7,828			166
Financial swaps	Fuel expense	13,811			22,563			701
Financial swaps	Other operations and maintenance	—			118			(84		)
Forward contracts	Operating revenues	285			41			55
Forward contracts	Purchased power	(270		)	(54		)	(69		)
Forward contracts	Fuel expense	565			(186		)	4

(1) Excludes unrealized gains or losses on derivatives, which are recorded on the balance sheet as regulatory assets or regulatory liabilities.

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The table below presents the fair values and locations of derivative instruments not designated as hedging instruments recorded on the balance sheets and reconciles the gross amounts of derivatives recognized as assets and as liabilities to the net amounts presented in the balance sheets at December 31, 2019 and 2018 (in thousands of dollars):

		Asset Derivatives								Liability Derivatives
	Balance Sheet Location	Gross Fair Value		Amounts Offset				Net Assets		Gross Fair Value		Amounts Offset			Net Liabilities
December 31, 2019
Current:
Financial swaps	Other current assets	$	2,426	$	(2,034	)		$	392	$	2,034	$	(2,034	)	$	—
Financial swaps	Other current liabilities	134		(134		)		—		924		(134		)	790
Forward contracts	Other current assets	13		—				13		—		—			—
Forward contracts	Other current liabilities	—		—				—		32		—			32
Long-term:
Financial swaps	Other assets	3		(3		)		—		27		(3		)	24
Total		$	2,576	$	(2,171	)		$	405	$	3,017	$	(2,171	)	$	846
December 31, 2018
Current:
Financial swaps	Other current assets	$	4,639	$	(984	)	(1)	$	3,655	$	938	$	(938	)	$	—
Financial swaps	Other current liabilities	—		—				—		806		—			806
Forward contracts	Other current liabilities	—		—				—		104		—			104
Long-term:
Financial swaps	Other liabilities	—		—				—		64		—			64
Total		$	4,639	$	(984	)		$	3,655	$	1,912	$	(938	)	$	974

(1) Current asset derivative amounts offset include $45 thousand of collateral payable at December 31, 2018.

^[1]

Schedule of Derivative Instruments

The table below presents the volumes of derivative commodity forward contracts and swaps outstanding at December 31, 2019 and 2018 (in thousands of units):

		December 31,
Commodity	Units	2019	2018
Electricity purchases	MWh	91	52
Electricity sales	MWh	138	39
Natural gas purchases	MMBtu	14,053	7,514
Natural gas sales	MMBtu	78	446

[1] Current asset derivative amounts offset include $45 thousand of collateral payable at December 31, 2018.