Investments in Debt and Equity Securities

6 Months Ended

Jun. 30, 2011

Investments in Debt and Equity Securities

Investments in Debt and Equity Securities

(D)

Investments in Debt and Equity Securities.    Under the accounting guidance for investments in debt and equity securities, investment securities we hold are classified as either available-for-sale or held-to-maturity. Available-for-sale securities are carried at market value with unrealized gains and losses, net of any tax effect, added to or deducted from patronage capital. Unrealized gains and losses from investment securities held in the decommissioning fund, which are also classified as available-for-sale, are directly added to or deducted from deferred asset retirement obligations costs. Held-to-maturity securities are carried at cost. We owned no held-to-maturity securities as of June 30, 2011 and December 31, 2010. All realized and unrealized gains and losses were determined using the specific identification method. Approximately 60% of these gross unrealized losses were in effect for less than one year. These losses were primarily due to investments in fixed income securities held in the nuclear decommissioning trust fund. Consistent with our ratemaking, unrealized gains and losses from the decommissioning trust fund are recorded as an increase or decrease to the regulatory asset.

• For those securities considered to be available-for-sale, the following table summarizes the activities for those securities as of June 30, 2011 and December 31, 2010:

		(dollars in thousands)
			Gross Unrealized
June 30, 2011	Cost		Gains		Losses			Fair Value
Equity	$	147,061	$	43,976	$	(2,648	)	$	188,389
Debt		161,122		9,040		(4,627	)		165,535
Other		8,476		382		(452	)		8,406
Total	$	316,659	$	53,398	$	(7,727	)	$	362,330

			Gross Unrealized
December 31, 2010		Cost		Gains		Losses			Fair Value
Equity	$	137,492	$	42,622	$	(2,482	)	$	177,632
Debt		158,706		9,130		(4,879	)		162,957
Other		7,035		3		(118	)		6,920
Total	$	303,233	$	51,755	$	(7,479	)	$	347,509