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Derivative and Hedging Instruments (Tables)
 12 Months Ended
Dec. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Gross Notional Volume of Open Derivatives

The gross notional volume of open derivatives is as follows:

December 31, 2016December 31, 2015
Commodity derivative contracts393,395 MWh355,580 MWh
Commodity derivative contracts4,195,000 Dth5,037,500 Dth
FTRs2,251 MW2,000 MW
PPA3,250 MW3,850 MW
Fair Value of Derivative Instruments on the Balance Sheet

The following table summarizes the fair value of the derivative instruments on the consolidated balance sheets. All derivative instruments in this table are presented on a gross basis and are calculated prior to the netting of instruments with the same counterparty under a master netting agreement as well as the netting of collateral. For financial statement purposes, MGE Energy and MGE have netted instruments with the same counterparty under a master netting agreement as well as the netting of collateral.

Derivative AssetsDerivative Liabilities
(In thousands)Balance Sheet Location
December 31, 2016
Commodity derivative contracts(a)$1,227$164Other current assets
Commodity derivative contracts(a)15754Other deferred charges
FTRs143-Other current assets
PPAN/A7,620Derivative liability (current)
PPAN/A42,970Derivative liability (long-term)
December 31, 2015
Commodity derivative contracts(a)$146$1,266Derivative liability (current)
Commodity derivative contracts(a)14470Derivative liability (long-term)
FTRs234-Other current assets
PPAN/A8,340Derivative liability (current)
PPAN/A44,930Derivative liability (long-term)

(a) As of December 31, 2015, collateral of $1.0 million was posted against and netted with derivative liability positions on the consolidated balance sheets. No collateral was posted against derivative positions as of December 31, 2016.
Offsetting Assets

The following tables show the effect of netting arrangements for recognized derivative assets and liabilities that are subject to a master netting arrangement or similar arrangement on the consolidated balance sheets.

Offsetting of Derivative Assets
Gross AmountsGross Amounts Offset in Balance SheetsCollateral Posted Against Derivative PositionsNet Amount Presented in Balance Sheets
(In thousands)
December 31, 2016
Commodity derivative contracts$1,384$(218)$-$1,166
FTRs143--143
December 31, 2015
Commodity derivative contracts$290$(290)$-$-
FTRs234--234
Offsetting Liabilities
Offsetting of Derivative Liabilities
Gross AmountsGross Amounts Offset in Balance SheetsCollateral Posted Against Derivative PositionsNet Amount Presented in Balance Sheets
(In thousands)
December 31, 2016
Commodity derivative contracts$218$(218)$-$-
PPA50,590--50,590
December 31, 2015
Commodity derivative contracts$1,336$(290)$(1,038)$8
PPA53,270--53,270
Derivative Gains and Losses in Balance Sheet

The following tables summarize the unrealized and realized gains (losses) related to the derivative instruments on the consolidated balance sheets at December 31, 2016 and 2015, and the consolidated income statements for the years ended December 31, 2016 and 2015.

20162015
Current and Long-Term Regulatory AssetOther Current AssetsCurrent and Long-Term Regulatory AssetOther Current Assets
(In thousands)
Balance at January 1, $54,082$1,208$54,998$1,001
Unrealized loss1,575-8,586-
Realized (loss) gain reclassified to a deferred account (1,060)1,060(2,953)2,953
Realized loss reclassified to income statement (5,316)(2,038)(6,549)(2,746)
Balance at December 31, $49,281$230$54,082$1,208
Derivative Gains and Losses in Income Statement
Realized Losses (Gains)
20162015
Fuel for Electric Generation/ Purchased Power Cost of Gas SoldFuel for Electric Generation/ Purchased Power Cost of Gas Sold
(In thousands)
Year Ended December 31:
Commodity derivative contracts$1,154$2,064$2,236$2,548
FTRs(445)-(309)-
PPA4,581-4,820-