Derivatives And Hedging

12 Months Ended

Dec. 31, 2016

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.

Excluding contracts accounted for as normal purchase/normal sale, we had the following outstanding derivative instruments:  

		As of		As of
		December 31, 2016		December 31, 2015
Commodity	Unit of Measure	Quantity		Quantity
Natural Gas	MMBTU		14,250,000		10,620,000

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	2016		2015
		(in thousands)
Derivatives in an asset position:
Natural gas futures contracts	Deferred charges-other	$	6,968	$	—
Total derivatives in an asset position		$	6,968	$	—
Derivatives in a liability position:
Natural gas futures contracts	Deferred credits and other liabilities-  other	$	—	$	3,653
Total derivatives in a liability position		$	—	$	3,653

The Effect of Derivative Instruments on the Consolidated Statements of Revenues, Expenses, and Patronage Capital for the Years Ended December 31, 2016 and 2015  

							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,
	2016		2015				2016			2015
	(in thousands)						(in thousands)
Natural gas futures contracts (1)	$	7,005	$	(3,694	)	Fuel	$	(2,369	)	$	(6,653	)
Purchased power contracts		—		—		Purchased Power		—			(14	)
Total	$	7,005	$	(3,694	)		$	(2,369	)	$	(6,667	)

⁽¹⁾ As of December 31, 2016 and 2015, includes a regulatory asset of $37 thousand and a regulatory liability of $41 thousand, respectively, to be recognized in future periods as a result of contracts being effectively settled.