Derivatives And Hedging

12 Months Ended

Dec. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives And Hedging

NOTE 7—Derivatives and Hedging

We are exposed to market price risk by purchasing power to supply the power requirements of our member distribution cooperatives that are not met by our owned generation. In addition, the purchase of fuel to operate our generating facilities

also exposes us to market price risk. To manage this exposure, we utilize derivative instruments. See Note 1—Summary of Significant Accounting Policies.

Changes in the fair value of our derivative instruments accounted for at fair value are recorded as a regulatory asset or regulatory liability. The change in these accounts is included in the operating activities section of our Consolidated Statements of Cash Flows.

Outstanding derivative instruments, excluding contracts accounted for as normal purchase/normal sale, were as follows:

		Quantity
		As of December 31,		As of December 31,
Commodity	Unit of Measure	2023		2022
Natural gas	MMBTU		111,070,000		91,770,000
Purchased power - financial transmission rights	MWh		9,382,175		8,450,239

The fair value of our derivative instruments, excluding contracts accounted for as normal purchase/normal sale, was as follows:

		Fair Value
		As of December 31,		As of December 31,
	Balance Sheet Location	2023		2022
		(in thousands)
Derivatives in an asset position:
Natural gas futures contracts	Other assets	$	441	$	48,612
Financial transmission rights	Other assets		—		11,290
Total derivatives in an asset position		$	441	$	59,902
Derivatives in a liability position:
Natural gas futures contracts	Other liabilities	$	76,000	$	8,721
Financial transmission rights	Other liabilities		1,001		—
Total derivatives in a liability position		$	77,001	$	8,721

The Effect of Derivative Instruments on the Consolidated Statements of Revenues, Expenses, and Patronage Capital for the Years Ended December 31, 2023 and 2022

							Amount of Gain
	Amount of Gain					Location of	(Loss) Reclassified
	(Loss) Recognized					Gain (Loss)	from Regulatory
	in Regulatory					Reclassified	Asset/Liability
	Asset/Liability for					from Regulatory	into Income for
Derivatives Accounted for	Derivatives as of					Asset/Liability	the Year
Utilizing Regulatory Accounting	December 31,					into Income	Ended December 31,
	2023			2022			2023			2022
	(in thousands)						(in thousands)
Natural gas futures contracts	$	(78,990	)	$	37,448	Fuel	$	(68,613	)	$	123,256
Purchased power		(1,001	)		11,290	Purchased Power		(11,877	)		20,901
Total	$	(79,991	)	$	48,738		$	(80,490	)	$	144,157