RISK MANAGEMENT ACTIVITIES

6 Months Ended

Jun. 30, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

RISK MANAGEMENT ACTIVITIES

Risk Management Activities

Our derivatives include natural gas purchase contracts, coal purchase contracts, financial derivative contracts, and financial transmission rights (FTRs). None of these derivatives are designated as hedges for accounting purposes. We use financial derivative contracts to manage the risks associated with the market price volatility of natural gas supply costs, coal transportation costs, and the cost of gasoline and diesel fuel used by utility vehicles. We use FTRs to manage electric transmission congestion costs in the MISO market.

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

		June 30, 2015
(Millions)	Balance Sheet Presentation*	Assets from Risk Management Activities		Liabilities from Risk Management Activities
Natural gas contracts	Other current	$	2.6	$	19.5
Natural gas contracts	Other long-term	1.0		2.9
FTRs	Other current	4.1		—
Petroleum product contracts	Other current	—		0.9
Coal contracts	Other current	—		4.1
Coal contracts	Other long-term	—		2.1
	Other current	6.7		24.5
	Other long-term	1.0		5.0
Total		$	7.7	$	29.5

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

		December 31, 2014
(Millions)	Balance Sheet Presentation*	Assets from Risk Management Activities		Liabilities from Risk Management Activities
Natural gas contracts	Other current	$	1.8	$	37.3
Natural gas contracts	Other long-term	0.5		5.3
FTRs	Other current	2.2		0.3
Petroleum product contracts	Other current	—		2.7
Petroleum product contracts	Other long-term	—		0.1
Coal contracts	Other current	—		2.4
Coal contracts	Other long-term	—		1.0
	Other current	4.0		42.7
	Other long-term	0.5		6.4
Total		$	4.5	$	49.1

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

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

	June 30, 2015
(Millions)	Gross Amount		Potential Effects of Netting, Including Cash Collateral		Net Amount
Derivative assets subject to master netting or similar arrangements	$	7.7	$	3.0	$	4.7
Derivative assets not subject to master netting or similar arrangements	—				—
Total risk management assets	$	7.7			$	4.7
Derivative liabilities subject to master netting or similar arrangements	$	22.1	$	4.5	$	17.6
Derivative liabilities not subject to master netting or similar arrangements	7.4				7.4
Total risk management liabilities	$	29.5			$	25.0

	December 31, 2014
(Millions)	Gross Amount		Potential Effects of Netting, Including Cash Collateral		Net Amount
Derivative assets subject to master netting or similar arrangements	$	3.2	$	1.3	$	1.9
Derivative assets not subject to master netting or similar arrangements	1.3				1.3
Total risk management assets	$	4.5			$	3.2
Derivative liabilities subject to master netting or similar arrangements	$	45.7	$	8.8	$	36.9
Derivative liabilities not subject to master netting or similar arrangements	3.4				3.4
Total risk management liabilities	$	49.1			$	40.3

Our master netting and similar arrangements have conditional rights of setoff that can be enforced under a variety of situations, including counterparty default or credit rating downgrade below investment grade. We have trade receivables and trade payables, subject to master netting or similar arrangements, that are not included in the above tables. These amounts may offset (or conditionally offset) the net amounts presented in the above tables.

Financial collateral provided is restricted to the extent that it is required per the terms of the related agreements. The following table shows our cash collateral positions:

(Millions)	June 30, 2015		December 31, 2014
Cash collateral provided to others: *
Related to contracts under master netting or similar arrangements	$	19.0	$	11.6
Other	1.1		1.1

* Cash collateral provided to others is reflected in other current assets on our balance sheets.

Certain of our derivative and nonderivative commodity instruments contain provisions that could require "adequate assurance" in the event of a material change in our creditworthiness, or the posting of additional collateral for instruments in net liability positions, if triggered by a decrease in credit ratings. The aggregate fair value of all derivative instruments with specific credit risk-related contingent features that were in a liability position at June 30, 2015, and December 31, 2014, was $19.8 million and $31.3 million, respectively. At June 30, 2015, and December 31, 2014, we had not posted any cash collateral related to the credit risk-related contingent features of these 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 at June 30, 2015, and at December 31, 2014, we would have been required to post collateral of $18.6 million and $27.1 million, respectively.

The notional volumes of our outstanding derivative contracts were as follows:

	June 30, 2015		December 31, 2014
(Millions)	Purchases	Other Transactions	Purchases	Other Transactions
Natural gas (therms)	774.7	N/A	1,860.0	N/A
FTRs (kilowatt-hours)	N/A	8,577.9	N/A	4,287.7
Petroleum products (barrels)	0.1	N/A	0.1	N/A
Coal (tons)	2.2	N/A	3.0	N/A

The table below shows the unrealized gains (losses) recorded related to our derivative contracts:

		Three Months Ended June 30				Six Months Ended June 30
(Millions)	Financial Statement Presentation	2015		2014		2015		2014
Natural gas	Balance Sheet — Regulatory assets	11.9		(1.0	)	22.2		(0.3	)
Natural gas	Balance Sheet — Regulatory liabilities	0.8		(3.3	)	(0.6	)	(0.3	)
Natural gas	Income Statement — Operating and maintenance expense	0.2		(0.1	)	0.1		0.1
FTRs	Balance Sheet — Regulatory assets	(7.2	)	(1.0	)	(7.0	)	(0.9	)
FTRs	Balance Sheet — Regulatory liabilities	2.4		1.1		2.0		1.0
Petroleum	Balance Sheet — Regulatory assets	0.5		—		0.9		—
Petroleum	Income Statement — Operating and maintenance expense	0.6		0.1		1.0		0.1
Coal	Balance Sheet — Regulatory assets	0.6		(0.1	)	(4.0	)	0.5
Coal	Balance Sheet — Regulatory liabilities	—		0.9		—		2.5