Financial Instruments & Related Fair Value (Tables)

2 Months Ended

Dec. 31, 2016

Financial Instruments & Related Fair Value [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

We have had no transfers between any level during the two months ended December 31, 2016 and 2015.

Recurring Fair Value Measurements as of December 31, 2016
			Significant				Effects of
	Quoted Prices		Other		Significant		Netting and
	in Active		Observable		Unobservable		Cash Collateral		Total
	Markets		Inputs		Inputs		Receivables/		Carrying
(in millions)	(Level 1)		(Level 2)		(Level 3)		Payables		Value
Assets:
Derivatives held for distribution operations	$	3.4	$	—	$	—	$	—	$	3.4
Debt and equity securities held as trading securities:
Money markets	0.6		—		—		—		0.6
Mutual funds	4.1		—		—		—		4.1
Total fair value assets	$	8.1	$	—	$	—	$	—	$	8.1
Liabilities:
Derivatives - gas supply contracts held for utility operations	$	—	$	—	$	186.7	$	—	$	186.7

Recurring Fair Value Measurements as of October 31, 2016
			Significant				Effects of
	Quoted Prices		Other		Significant		Netting and
	in Active		Observable		Unobservable		Cash Collateral		Total
	Markets		Inputs		Inputs		Receivables/		Carrying
(in millions)	(Level 1)		(Level 2)		(Level 3)		Payables		Value
Assets:
Derivatives held for distribution operations	$	1.5	$	—	$	—	$	—	$	1.5
Debt and equity securities held as trading securities:
Money markets	0.5		—		—		—		0.5
Mutual funds	3.7		—		—		—		3.7
Total fair value assets	$	5.7	$	—	$	—	$	—	$	5.7
Liabilities:
Derivatives - gas supply contracts held for utility operations	$	—	$	—	$	187.9	$	—	$	187.9

The following table sets forth, by level of the fair value hierarchy, our financial and nonfinancial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2016 and October 31, 2016.

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

The following is a reconciliation of the gas supply derivative liabilities that are classified as Level 3 in the fair value hierarchy for the two months ended December 31, 2016 and 2015.

(in millions)	Two Months Ended December 31, 2016
Balance at October 31, 2016	$	187.9
Realized and unrealized losses:
Recorded to regulatory assets *	(1.2		)
Purchases, sales and settlements (net)	—
Transfer in/out of Level 3	—
Balance at December 31, 2016	$	186.7
(in millions)	Two Months Ended December 31, 2015
Balance at October 31, 2015	$	—
Realized and unrealized losses:
Recorded to regulatory assets *	149.4
Purchases, sales and settlements (net)	—
Transfer in/out of Level 3	—
Balance at December 31, 2015	$	149.4
* Included are the actual costs recorded within "Cost of natural gas" on the Condensed Consolidated Statements of Operations and Comprehensive Income due to the confidential nature of contract pricing.

Schedule of Derivatives Not Designated as Hedging

The following table presents the impact that our gas purchase options not designated as hedging instruments under derivative accounting standards would have had on the Condensed Consolidated Statements of Operations and Comprehensive Income for the two months ended December 31, 2016 and 2015, absent the regulatory treatment under our approved PGA procedures.

	Amount of					Amount of					Location of Gain (Loss)
	Gain (Loss) Recognized					Gain (Loss) Deferred					Recognized through
	on Derivative Instruments					Under PGA Procedures					PGA Procedures
	Two Months Ended					Two Months Ended
	December 31,					December 31,
(in millions)	2016		2015			2016		2015
Gas purchase options	$	0.2	$	(1.2	)	$	0.2	$	(1.2	)	Cost of natural gas

The following table presents the fair value and balance sheet classification of our gas purchase options and gas supply derivative contracts for natural gas as of December 31, 2016 and October 31, 2016.

Fair Value of Derivative Instruments
	December 31,		October 31,
(in millions)	2016		2016
Derivatives Not Designated as Hedging Instruments under Derivative Accounting Standards:
Financial Asset Instruments:
Current Assets - Gas purchase derivative assets	$	3.4	$	1.5
Nonfinancial Liabilities Instruments:
Current Liabilities - Gas supply derivative liabilities	34.4		41.5
Noncurrent Liabilities - Gas supply derivative liabilities	152.3		146.4

Fair Value, by Balance Sheet Grouping

The principal and fair value of our long-term debt, which is classified within Level 2, are shown below.

(in millions)	Principal		Fair Value
As of December 31, 2016	$	1,835.0	$	1,932.6
As of October 31, 2016	1,835.0		2,061.2