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FAIR VALUE (Tables)
 6 Months Ended
Jun. 30, 2015
Fair Value Disclosures [Abstract]  
Fair value of assets and liabilities measured on a recurring basis, categorized by level within the fair value hierarchy
The following tables show assets and liabilities that were accounted for at fair value on a recurring basis, categorized by level within the fair value hierarchy:
 
 
June 30, 2015
(Millions)
 
Level 1
 
Level 2
 
Level 3
 
Total
Assets
 
 
 
 
 
 
 
 
Risk Management Assets
 
 

 
 

 
 

 
 

Natural gas contracts
 
$
1.4

 
$
2.2

 
$
—

 
$
3.6

Financial transmission rights (FTRs)
 
—

 
—

 
4.1

 
4.1

Total Risk Management Assets
 
$
1.4

 
$
2.2

 
$
4.1

 
$
7.7

 
 
 
 
 
 
 
 
 
Investment in exchange-traded funds
 
$
107.5

 
$
—

 
$
—

 
$
107.5

 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
Risk Management Liabilities
 
 

 
 

 
 

 
 

Natural gas contracts
 
$
1.4

 
$
21.0

 
$
—

 
$
22.4

Petroleum product contracts
 
0.9

 
—

 
—

 
0.9

Coal contracts
 
—

 
0.8

 
5.4

 
6.2

Total Risk Management Liabilities
 
$
2.3

 
$
21.8

 
$
5.4

 
$
29.5


 
 
December 31, 2014
(Millions)
 
Level 1
 
Level 2
 
Level 3
 
Total
Assets
 
 
 
 
 
 
 
 
Risk Management Assets
 
 
 
 
 
 
 
 
Natural gas contracts
 
$
—

 
$
2.3

 
$
—

 
$
2.3

FTRs
 
—

 
—

 
2.2

 
2.2

Total Risk Management Assets
 
$
—

 
$
2.3

 
$
2.2

 
$
4.5

 
 
 
 
 
 
 
 
 
Investment in exchange-traded funds
 
$
102.4

 
$
—

 
$
—

 
$
102.4

 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
Risk Management Liabilities
 
 
 
 
 
 
 
 
Natural gas contracts
 
$
4.8

 
$
31.2

 
$
6.6

 
$
42.6

FTRs
 
—

 
—

 
0.3

 
0.3

Petroleum product contracts
 
2.8

 
—

 
—

 
2.8

Coal contracts
 
—

 
1.2

 
2.2

 
3.4

Total Risk Management Liabilities
 
$
7.6

 
$
32.4

 
$
9.1

 
$
49.1
Significant unobservable inputs used in the valuation of derivatives categorized in Level 3
The amounts listed in the table below represent the range of unobservable inputs used in the valuations that individually had a significant impact on the fair value determination and caused a derivative to be classified as Level 3 at June 30, 2015:
 
 
Fair Value (Millions)
 
 
 
 
 
 
 
 
Assets
 
Liabilities
 
Valuation Technique
 
Unobservable Input
 
Average or Range
FTRs
 
$
4.1

 
$
—

 
Market-based
 
Forward market prices ($/megawatt-month) (1)
 
$172.71
Coal contracts
 
—

 
5.4

 
Market-based
 
Forward market prices ($/ton) (2)
 
$9.86 – $13.23

(1) 
Represents forward market prices developed using historical cleared pricing data from MISO.

(2) 
Represents third-party forward market pricing.
Reconciliation of changes in Level 3 fair value measurements
The following tables set forth a reconciliation of changes in the fair value of items categorized as Level 3 measurements:
Three Months Ended June 30, 2015
 
 
 
 
 
 
(Millions)
 
 
 
FTRs
 
Coal 
Contracts
 
Total
Balance at the beginning of the period
 


 
$
0.6

 
$
(6.2
)
 
$
(5.6
)
Net realized losses included in earnings
 


 
(1.2
)
 
—

 
(1.2
)
Net unrealized (losses) gains recorded as regulatory assets or liabilities
 


 
(4.8
)
 
0.3

 
(4.5
)
Purchases
 
 
 
9.8

 
—

 
9.8

Settlements
 


 
(0.3
)
 
0.5

 
0.2

Balance at the end of the period
 


 
$
4.1

 
$
(5.4
)
 
$
(1.3
)
 
 
 
 
 
 
 
 
 
Three Months Ended June 30, 2014
 
 
 
 
 
 
(Millions)
 
 
 
FTRs
 
Coal 
Contracts
 
Total
Balance at the beginning of the period
 
 
 
$
0.5

 
$
0.3

 
$
0.8

Net realized gains included in earnings
 
 
 
0.1

 
—

 
0.1

Net unrealized gains recorded as regulatory assets or liabilities
 
 
 
0.1

 
0.8

 
0.9

Purchases
 
 
 
4.4

 
—

 
4.4

Settlements
 
 
 
(1.1
)
 
(0.2
)
 
(1.3
)
Balance at the end of the period
 
 
 
$
4.0

 
$
0.9

 
$
4.9

 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2015
 
 
 
 
 
 
(Millions)
 
Natural Gas Contracts
 
FTRs
 
Coal 
Contracts
 
Total
Balance at the beginning of the period
 
$
(6.6
)
 
$
1.9

 
$
(2.2
)
 
$
(6.9
)
Net realized losses included in earnings
 
—

 
(2.4
)
 
—

 
(2.4
)
Net unrealized losses recorded as regulatory assets or liabilities
 
—

 
(5.0
)
 
(4.0
)
 
(9.0
)
Purchases
 
—

 
9.8

 
—

 
9.8

Settlements
 
6.6

 
(0.2
)
 
0.8

 
7.2

Balance at the end of the period
 
$
—

 
$
4.1

 
$
(5.4
)
 
$
(1.3
)
 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2014
 
 
 
 
 
 
(Millions)
 
 
 
FTRs
 
Coal 
Contracts
 
Total
Balance at the beginning of the period
 
 
 
$
1.2

 
$
(2.5
)
 
$
(1.3
)
Net realized gains included in earnings
 
 
 
0.8

 
—

 
0.8

Net unrealized gains recorded as regulatory assets or liabilities
 
 
 
0.1

 
3.0

 
3.1

Purchases
 
 
 
4.3

 
—

 
4.3

Settlements
 
 
 
(2.4
)
 
0.4

 
(2.0
)
Balance at the end of the period
 
 
 
$
4.0

 
$
0.9

 
$
4.9
Schedule of carrying value and estimated fair value of financial instruments not recorded at fair value
The following table shows the financial instruments included on our balance sheets that are not recorded at fair value:
 
 
June 30, 2015
 
December 31, 2014
(Millions)
 
Carrying Amount
 
Fair Value
 
Carrying Amount
 
Fair Value
Long-term debt
 
$
3,081.3

 
$
3,112.9

 
$
3,081.3

 
$
3,271.4

Preferred stock of subsidiary
 
51.1

 
53.1

 
51.1

 
51.8