RISK MANAGEMENT ACTIVITIES (Tables)

3 Months Ended

Mar. 31, 2014

Assets and liabilities from risk management activities

The following tables show our assets and liabilities from risk management activities:



		March 31, 2014
(Millions)	Balance Sheet Presentation⁽¹⁾	Assets from Risk Management Activities		Liabilities from Risk Management Activities
Utility Segments
Nonhedge derivatives
Natural gas contracts	Current	$	12.3	$	0.3
Natural gas contracts	Long-term	1.0		0.1
Financial transmission rights (FTRs) ⁽²⁾	Current	0.9		0.2
Petroleum product contracts	Current	0.1		—
Coal contracts	Current	—		1.1
Coal contracts	Long-term	1.8		0.4

Nonregulated Segments
Nonhedge derivatives
Natural gas contracts	Current	56.0		41.7
Natural gas contracts	Long-term	20.9		10.9
Electric contracts	Current	200.8		132.5
Electric contracts	Long-term	36.6		34.8
	Current	270.1		175.8
	Long-term	60.3		46.2
Total		$	330.4	$	222.0


⁽¹⁾	We classify assets and liabilities from risk management activities as current or long-term based on the maturities of the underlying contracts.


⁽²⁾	Includes a $0.2 million risk management asset that was classified as held for sale at UPPCO. See Note 5, Dispositions, for more information.



		December 31, 2013
(Millions)	Balance Sheet Presentation⁽¹⁾	Assets from Risk Management Activities		Liabilities from Risk Management Activities
Utility Segments
Nonhedge derivatives
Natural gas contracts	Current	$	8.3	$	1.0
Natural gas contracts	Long-term	1.8		0.1
FTRs ⁽²⁾	Current	2.1		0.3
Petroleum product contracts	Current	0.1		—
Coal contracts	Current	—		1.9
Coal contracts	Long-term	0.2		0.8

Nonregulated Segments
Nonhedge derivatives
Natural gas contracts	Current	57.6		42.9
Natural gas contracts	Long-term	29.5		18.6
Electric contracts	Current	172.0		117.7
Electric contracts	Long-term	43.9		43.3
	Current	240.1		163.8
	Long-term	75.4		62.8
Total		$	315.5	$	226.6


⁽¹⁾	We classify assets and liabilities from risk management activities as current or long-term based on the maturities of the underlying contracts.


⁽²⁾	Includes a $0.6 million risk management asset that was classified as held for sale at UPPCO. See Note 5, Dispositions, for more information.

Potential effect of netting arrangements on our financial position for recognized derivative assets and liabilities

The following tables show the potential effect on our financial position of netting arrangements for recognized derivative assets and liabilities:



	March 31, 2014
(Millions)	Gross Amount		Potential Effects of Netting, Including Cash Collateral		Net Amount
Derivative assets subject to master netting or similar arrangements
Utility segments	$	14.3	$	0.6	$	13.7
Nonregulated segments	314.0		193.0		121.0
Total	328.3		193.6		134.7
Derivative assets not subject to master netting or similar arrangements	2.1				2.1
Total risk management assets	$	330.4			$	136.8

Derivative liabilities subject to master netting or similar arrangements
Utility segments	$	0.6	$	0.6	$	—
Nonregulated segments	219.8		193.0		26.8
Total	220.4		193.6		26.8
Derivative liabilities not subject to master netting or similar arrangements	1.6				1.6
Total risk management liabilities	$	222.0			$	28.4



	December 31, 2013
(Millions)	Gross Amount		Potential Effects of Netting, Including Cash Collateral		Net Amount
Derivative assets subject to master netting or similar arrangements
Utility segments	$	12.3	$	2.1	$	10.2
Nonregulated segments	301.9		178.1		123.8
Total	314.2		180.2		134.0
Derivative assets not subject to master netting or similar arrangements	1.3				1.3
Total risk management assets	$	315.5			$	135.3

Derivative liabilities subject to master netting or similar arrangements
Utility segments	$	1.4	$	1.4	$	—
Nonregulated segments	222.1		178.1		44.0
Total	223.5		179.5		44.0
Derivative liabilities not subject to master netting or similar arrangements	3.1				3.1
Total risk management liabilities	$	226.6			$	47.1

Cash collateral positions

The following table shows our cash collateral positions:



(Millions)	March 31, 2014		December 31, 2013
Cash collateral provided to others:
Related to contracts under master netting or similar arrangements ⁽¹⁾	$	74.6	$	37.6
Other	1.1		1.1
Cash collateral received from others related to contracts under master netting or similar arrangements ⁽²⁾	1.5		0.7


⁽¹⁾	Includes $1.3 million of cash collateral provided to others that was classified as held for sale at UPPCO at March 31, 2014 and December 31, 2013. See Note 5, Dispositions, for more information.


⁽²⁾	Reflected in other current liabilities on the balance sheets.

Derivatives with credit risk-related contingent features that were in a liability position

The following table shows the aggregate fair value of all derivative instruments with specific credit risk-related contingent features that were in a liability position:



(Millions)	March 31, 2014		December 31, 2013
Utility segments	$	0.2	$	0.6
Nonregulated segments	58.4		76.7

Collateral requirements related to credit-risk related contingent features in commodity instruments

If all of the credit risk-related contingent features contained in commodity instruments (including derivatives, nonderivatives, normal purchase and normal sales contracts, and applicable payables and receivables) had been triggered, our collateral requirement would have been as follows:



(Millions)	March 31, 2014		December 31, 2013
Collateral that would have been required:
Utility segments	$	—	$	—
Nonregulated segments	199.7		197.6
Collateral already satisfied:
Nonregulated segments — Letters of credit	20.0		4.5
Collateral remaining:
Nonregulated segments	179.7		193.1

Utility segments

Risk management activities

Notional volumes of outstanding non-hedge derivative contracts

The notional volumes of outstanding derivative contracts at the utilities and IBS were as follows:

March 31, 2014

December 31, 2013

(Millions, except barrels)

Purchases

Sales

Other Transactions

Purchases

Sales

Other Transactions

Natural gas (therms)

2,438.8

2.1

N/A

3,124.8

29.3

N/A

FTRs (kilowatt-hours)

N/A

1,448.7

N/A

3,633.1

Petroleum products (barrels)

113,000.0

20,000.0

N/A

102,811.0

14,000.0

N/A

Coal (tons)

4.3

—

N/A

4.8

—

N/A

Unrealized gains (losses) related to non-hedge derivatives

The table below shows the unrealized gains (losses) recorded related to derivative contracts at the utilities and IBS:



		Three Months Ended March 31
(Millions)	Financial Statement Presentation	2014			2013
Natural gas	Balance Sheet — Regulatory assets (current)	$	0.9		$	13.0
Natural gas	Balance Sheet — Regulatory assets (long-term)	(0.2		)	0.8
Natural gas	Balance Sheet — Regulatory liabilities (current)	3.4			5.9
Natural gas	Balance Sheet — Regulatory liabilities (long-term)	(0.4		)	0.8
Natural gas	Income Statement — Operating and maintenance expense	0.2			0.2
FTRs	Balance Sheet — Regulatory assets (current)	0.2			0.2
FTRs	Balance Sheet — Regulatory liabilities (current)	(0.2		)	(0.4		)
Coal	Balance Sheet — Regulatory assets (current)	0.2			1.9
Coal	Balance Sheet — Regulatory assets (long-term)	0.4			2.3
Coal	Balance Sheet — Regulatory liabilities (current)	—			(0.2		)
Coal	Balance Sheet — Regulatory liabilities (long-term)	1.6			(2.2		)

Nonregulated segments

Risk management activities

Notional volumes of outstanding non-hedge derivative contracts

IES had the following notional volumes of outstanding derivative contracts:



	March 31, 2014		December 31, 2013
(Millions)	Purchases	Sales	Purchases	Sales
Commodity contracts
Natural gas (therms)	919.2	774.3	1,199.9	1,065.4
Electric (kilowatt-hours)	40,473.7	25,245.0	49,186.3	30,813.8

Gains (losses) related to non-hedge derivatives

Gains (losses) related to derivative contracts are recognized currently in earnings, as shown in the table below:



		Three Months Ended March 31
(Millions)	Income Statement Presentation	2014			2013
Natural gas	Nonregulated revenue	$	(36.9	)	$	3.4
Natural gas	Nonregulated cost of sales	33.0			(1.6		)
Natural gas	Nonregulated revenue (reclassified from accumulated OCI) *	—			(0.1		)
Electric	Nonregulated revenue	160.3			64.0
Electric	Nonregulated cost of sales	0.6			—
Electric	Nonregulated revenue (reclassified from accumulated OCI) *	—			(1.0		)
Total		$	157.0		$	64.7


*	Represents amounts reclassified from accumulated other comprehensive loss (OCI) related to cash flow hedges that were dedesignated in prior periods.