Derivative Accounting (Tables)

3 Months Ended

Mar. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Outstanding Gross Notional Amount of Derivatives, Which Represents Both Purchases and Sales (Does Not Reflect Net Position)

The following table shows the outstanding gross notional volume of energy derivatives, which represent both purchases and sales (does not reflect net position): 

		Quantity
Commodity	Unit of Measure	March 31, 2023	December 31, 2022
Power	GWh	1,664	1,197
Gas	Billion cubic feet	194	149

Schedule of Gains and Losses From Derivative Instruments Not Designated as Accounting Hedges Instruments

The following table provides information about gains and losses from energy derivative instruments not designated as accounting hedging instruments (dollars in thousands):

	Financial Statement Location	Three Months Ended March 31,
Commodity Contracts		2023		2022
Net Gain (Loss) Recognized in Income	Fuel and purchased power (a)	$	(188,930)	$	223,742

(a)Amounts are before the effect of PSA deferrals.

Schedule of Offsetting Assets

The following tables provide information about the fair value of our risk management activities reported on a gross basis, and the impacts of offsetting.  These amounts relate to commodity contracts and are located in the assets and liabilities from risk management activities lines of APS’s Condensed Consolidated Balance Sheets.

As of March 31, 2023: (dollars in thousands)	Gross  Recognized  Derivatives  (a)		Amounts Offset  (b)		Net  Recognized  Derivatives		Other  (c)		Amount Reported on Balance Sheets
Current assets	$	22,994	$	(7,050)	$	15,944	$	17	$	15,961
Investments and other assets	26,746		(9,664)		17,082		—		17,082
Total assets	49,740		(16,714)		33,026		17		33,043
Current liabilities	(84,853)		7,050		(77,803)		(6,071)		(83,874)
Deferred credits and other	(23,349)		9,664		(13,685)		—		(13,685)
Total liabilities	(108,202)		16,714		(91,488)		(6,071)		(97,559)
Total	$	(58,462)	$	—	$	(58,462)	$	(6,054)	$	(64,516)

(a)All of our gross recognized derivative instruments were subject to master netting arrangements.

(b)No cash collateral has been provided to counterparties, or received from counterparties, that is subject to offsetting.

(c)Represents cash collateral and cash margin that is not subject to offsetting. Amounts relate to non-derivative instruments, derivatives qualifying for scope exceptions, or collateral and margin posted or received in excess of the recognized derivative instrument. Includes cash collateral received from counterparties of $6,071 thousand and cash margin provided to counterparties of $17 thousand.

As of December 31, 2022: (dollars in thousands)	Gross Recognized Derivatives  (a)		Amounts Offset (b)		Net  Recognized  Derivatives		Other  (c)		Amount Reported on Balance Sheets
Current assets	$	103,484	$	(15,808)	$	87,676	$	28	$	87,704
Investments and other assets	49,777		(5,383)		44,394		—		44,394
Total assets	153,261		(21,191)		132,070		28		132,098
Current liabilities	(47,670)		15,808		(31,862)		(5,835)		(37,697)
Deferred credits and other	(9,223)		5,383		(3,840)		—		(3,840)
Total liabilities	(56,893)		21,191		(35,702)		(5,835)		(41,537)
Total	$	96,368	$	—	$	96,368	$	(5,807)	$	90,561

(a)All of our gross recognized derivative instruments were subject to master netting arrangements.

(b)No cash collateral has been provided to counterparties, or received from counterparties, that is subject to offsetting.

(c)Represents cash collateral and cash margin that is not subject to offsetting. Amounts relate to non-derivative instruments, derivatives qualifying for scope exceptions, or collateral and margin posted in excess of the recognized derivative instrument.  Includes cash collateral received from counterparties of $5,835 thousand and cash margin provided to counterparties of $28 thousand.

Schedule of Offsetting Liabilities

The following tables provide information about the fair value of our risk management activities reported on a gross basis, and the impacts of offsetting.  These amounts relate to commodity contracts and are located in the assets and liabilities from risk management activities lines of APS’s Condensed Consolidated Balance Sheets.

As of March 31, 2023: (dollars in thousands)	Gross  Recognized  Derivatives  (a)		Amounts Offset  (b)		Net  Recognized  Derivatives		Other  (c)		Amount Reported on Balance Sheets
Current assets	$	22,994	$	(7,050)	$	15,944	$	17	$	15,961
Investments and other assets	26,746		(9,664)		17,082		—		17,082
Total assets	49,740		(16,714)		33,026		17		33,043
Current liabilities	(84,853)		7,050		(77,803)		(6,071)		(83,874)
Deferred credits and other	(23,349)		9,664		(13,685)		—		(13,685)
Total liabilities	(108,202)		16,714		(91,488)		(6,071)		(97,559)
Total	$	(58,462)	$	—	$	(58,462)	$	(6,054)	$	(64,516)

(a)All of our gross recognized derivative instruments were subject to master netting arrangements.

(b)No cash collateral has been provided to counterparties, or received from counterparties, that is subject to offsetting.

(c)Represents cash collateral and cash margin that is not subject to offsetting. Amounts relate to non-derivative instruments, derivatives qualifying for scope exceptions, or collateral and margin posted or received in excess of the recognized derivative instrument. Includes cash collateral received from counterparties of $6,071 thousand and cash margin provided to counterparties of $17 thousand.

As of December 31, 2022: (dollars in thousands)	Gross Recognized Derivatives  (a)		Amounts Offset (b)		Net  Recognized  Derivatives		Other  (c)		Amount Reported on Balance Sheets
Current assets	$	103,484	$	(15,808)	$	87,676	$	28	$	87,704
Investments and other assets	49,777		(5,383)		44,394		—		44,394
Total assets	153,261		(21,191)		132,070		28		132,098
Current liabilities	(47,670)		15,808		(31,862)		(5,835)		(37,697)
Deferred credits and other	(9,223)		5,383		(3,840)		—		(3,840)
Total liabilities	(56,893)		21,191		(35,702)		(5,835)		(41,537)
Total	$	96,368	$	—	$	96,368	$	(5,807)	$	90,561

(a)All of our gross recognized derivative instruments were subject to master netting arrangements.

(b)No cash collateral has been provided to counterparties, or received from counterparties, that is subject to offsetting.

(c)Represents cash collateral and cash margin that is not subject to offsetting. Amounts relate to non-derivative instruments, derivatives qualifying for scope exceptions, or collateral and margin posted in excess of the recognized derivative instrument.  Includes cash collateral received from counterparties of $5,835 thousand and cash margin provided to counterparties of $28 thousand.

Schedule of Information about Derivative Instruments that have Credit-Risk-Related Contingent Features

The following table provides information about our energy derivative instruments that have credit-risk-related contingent features (dollars in thousands):

	March 31, 2023
Aggregate fair value of derivative instruments in a net liability position	$	108,202
Additional cash collateral in the event credit-risk-related contingent features were fully triggered (a)	73,886

(a)This amount is after counterparty netting and includes those contracts which qualify for scope exceptions, which are excluded from the derivative details above.