Document_and_Entity_Informatio
Document and Entity Information Document (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Jan. 31, 2015 |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | BLACK HILLS POWER INC | |
Entity Central Index Key | 12400 | |
Document Type | 10-K | |
Document Period End Date | 31-Dec-14 | |
Amendment Flag | FALSE | |
Document Fiscal Year End Focus | 2014 | |
Document Fiscal Period Focus | FY | |
Current Fiscal Year End Date | -19 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 23,416,396,000 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Public Float | $0 |
Statements_of_Income
Statements of Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement [Abstract] | |||
Revenue | $268,488 | $254,027 | $243,309 |
Operating expenses: | |||
Fuel and purchased power | 93,976 | 89,437 | 87,519 |
Operations and maintenance | 70,356 | 68,857 | 65,835 |
Depreciation and amortization | 29,100 | 28,125 | 27,621 |
Taxes - property | 5,942 | 5,264 | 4,753 |
Total operating expenses | 199,374 | 191,683 | 185,728 |
Operating income | 69,114 | 62,344 | 57,581 |
Other income (expense): | |||
Interest expense | -20,569 | -19,725 | -17,602 |
AFUDC - borrowed | 248 | 186 | 161 |
Interest income | 619 | 248 | 376 |
AFUDC - equity | 519 | 368 | 325 |
Other expense | -105 | -196 | 0 |
Other income | 248 | 367 | 554 |
Total other income (expense) | -19,040 | -18,752 | -16,186 |
Income from continuing operations before income taxes | 50,074 | 43,592 | 41,395 |
Income tax expense | -16,512 | -13,419 | -14,309 |
Net income | $33,562 | $30,173 | $27,086 |
Statements_of_Comprehensive_In
Statements of Comprehensive Income (Loss) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net income | $33,562 | $30,173 | $27,086 |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Benefit plan liability adjustments - net gain (loss) (net of tax of $189, ($73) and $93, respectively) | -351 | 139 | -171 |
Reclassification adjustment of benefit plan liability - net gain (loss) (net of tax of $(16), $(23) and $0) | 29 | 43 | 0 |
Reclassification adjustment of cash flow hedges settled and included in net income (loss) (net of tax of $(364), $(23) and $(23), respectively) | -300 | 41 | 41 |
Other comprehensive income (loss), net of tax | -622 | 223 | -130 |
Comprehensive income (loss), net of tax | $32,940 | $30,396 | $26,956 |
Statements_of_Comprehensive_In1
Statements of Comprehensive Income (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income (Parenthetical) [Abstract] | |||
Benefit plan liability adjustments - net gain (loss), Tax | $189 | ($73) | $93 |
Reclassification adjustment of benefit plan liability - net gain (loss) tax | -16 | -23 | 0 |
Reclassification adjustment of cash flow hedges settled and included in net income (loss), Tax | ($364) | ($23) | ($23) |
Balance_Sheets
Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $6,620 | $2,259 |
Receivables - customers, net | 34,684 | 25,799 |
Receivables - affiliates | 5,350 | 4,934 |
Other receivables, net | 259 | 579 |
Money pool notes receivable | 68,626 | 17,292 |
Materials, supplies and fuel | 20,965 | 23,278 |
Deferred income tax assets, net, current | 13,661 | 2,170 |
Regulatory assets, current | 10,257 | 4,891 |
Other current assets | 4,954 | 4,933 |
Total current assets | 165,376 | 86,135 |
Investments | 4,584 | 4,431 |
Property, plant and equipment | 1,115,061 | 1,095,884 |
Less accumulated depreciation and amortization | -309,767 | -334,174 |
Total property, plant and equipment, net | 805,294 | 761,710 |
Other assets: | ||
Regulatory assets, non-current | 68,427 | 40,373 |
Other, non-current assets | 11,708 | 8,524 |
Total other assets | 80,135 | 48,897 |
TOTAL ASSETS | 1,055,389 | 901,173 |
Current liabilities: | ||
Accounts payable | 30,543 | 26,144 |
Accounts payable - affiliates | 19,242 | 21,082 |
Accrued liabilities | 16,415 | 14,966 |
Regulatory liabilities, current | 3,073 | 161 |
Total current liabilities | 69,273 | 62,353 |
Long-term debt | 342,752 | 269,948 |
Deferred credits and other liabilities: | ||
Deferred income tax liabilities, net, non-current | 193,042 | 167,309 |
Regulatory liabilities, non-current | 51,916 | 43,357 |
Benefit plan liabilities | 20,981 | 12,105 |
Other, non-current liabilities | 2,631 | 4,247 |
Total deferred credits and other liabilities | 268,570 | 227,018 |
Commitments and contingencies (Notes 4, 8, 9 and 11) | ||
Stockholder's equity: | ||
Common stock $1 par value; 50,000,000 shares authorized; 23,416,396 shares issued | 23,416 | 23,416 |
Additional paid-in capital | 39,575 | 39,575 |
Retained earnings | 313,622 | 280,060 |
Accumulated other comprehensive loss | -1,819 | -1,197 |
Total stockholder's equity | 374,794 | 341,854 |
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | $1,055,389 | $901,173 |
Balance_Sheets_Paranthetical
Balance Sheets (Paranthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Common Stock, Par Value Per Share | $1 | $1 |
Common Stock, Shares Authorized | 50,000,000 | 50,000,000 |
Common Stock, Shares, Issued | 23,416,396 | 23,416,396 |
Common Stock, Shares, Outstanding | 23,416,396 | 23,416,396 |
Statements_of_Cash_Flows
Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating activities: | |||
Net income | $33,562 | $30,173 | $27,086 |
Adjustments to reconcile net income to net cash provided by operating activities - | |||
Depreciation and amortization | 29,100 | 28,125 | 27,621 |
Deferred income taxes | 16,518 | 13,582 | 24,628 |
AFUDC - equity | -519 | -368 | -325 |
Employee benefits | 1,295 | 3,094 | 3,828 |
Other adjustments | -2,330 | 1,400 | 1,187 |
Change in operating assets and liabilities - | |||
Accounts receivable and other current assets | -13,299 | -5,175 | 2,916 |
Accounts payable and other current liabilities | 10,829 | 1,180 | -903 |
Contributions to defined benefit pension plan | -1,696 | -2,299 | -6,835 |
Other operating activities | -6,624 | -3,149 | -6,625 |
Net cash provided by (used in) operating activities | 66,836 | 66,563 | 72,578 |
Investing activities: | |||
Property, plant and equipment additions | -82,826 | -74,390 | -40,415 |
Notes receivable from affiliate companies, net | -51,334 | 6,353 | -25,152 |
Other investing activities | -154 | -72 | 469 |
Net cash provided by (used in) investing activities | -134,314 | -68,109 | -65,098 |
Financing activities: | |||
Long-term debt - repayments | -12,200 | 0 | -6,487 |
Long-term debt - issuance | 85,000 | 0 | 0 |
Other financing activities | -961 | 0 | 0 |
Net cash provided by (used in) financing activities | 71,839 | 0 | -6,487 |
Net change in cash and cash equivalents | 4,361 | -1,546 | 993 |
Cash and cash equivalents: | |||
Beginning of year | 2,259 | 3,805 | 2,812 |
End of year | $6,620 | $2,259 | $3,805 |
Statements_of_Common_Stockhold
Statements of Common Stockholder's Equity (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Dec. 31, 2011 | $23,416,000 | $39,575,000 | $274,785,000 | ($1,290,000) | |
Common Stock, Shares, Issued at Dec. 31, 2011 | 23,416,000 | ||||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |||||
Stock Issued During Period, Shares, New Issues | 0 | ||||
Stockholders' Equity Attributable to Parent [Abstract] | |||||
Stock Issued During Period, Value, New Issues | 0 | 0 | |||
Net income | 27,086,000 | 27,086,000 | |||
Non-cash Dividend to Parent Company | -43,984,000 | ||||
Other Comprehensive Income (Loss), Net of Tax | -130,000 | -130,000 | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Dec. 31, 2012 | 319,458,000 | 23,416,000 | 39,575,000 | 257,887,000 | -1,420,000 |
Common Stock, Shares, Issued at Dec. 31, 2012 | 23,416,000 | ||||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |||||
Stock Issued During Period, Shares, New Issues | 0 | ||||
Stockholders' Equity Attributable to Parent [Abstract] | |||||
Stock Issued During Period, Value, New Issues | 0 | 0 | |||
Net income | 30,173,000 | 30,173,000 | |||
Non-cash Dividend to Parent Company | -8,000,000 | ||||
Other Comprehensive Income (Loss), Net of Tax | 223,000 | 223,000 | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Dec. 31, 2013 | 341,854,000 | 23,416,000 | 39,575,000 | 280,060,000 | -1,197,000 |
Common Stock, Shares, Issued at Dec. 31, 2013 | 23,416,396 | 23,416,000 | |||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |||||
Stock Issued During Period, Shares, New Issues | 0 | ||||
Stockholders' Equity Attributable to Parent [Abstract] | |||||
Stock Issued During Period, Value, New Issues | 0 | 0 | |||
Net income | 33,562,000 | 33,562,000 | |||
Non-cash Dividend to Parent Company | 0 | ||||
Other Comprehensive Income (Loss), Net of Tax | -622,000 | -622,000 | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Dec. 31, 2014 | $374,794,000 | $23,416,000 | $39,575,000 | $313,622,000 | ($1,819,000) |
Common Stock, Shares, Issued at Dec. 31, 2014 | 23,416,396 | 23,416,000 |
Business_Description_and_Summa
Business Description and Summary of Significant Accounting Policies | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||
Business Description and Significant Accounting Policies | BUSINESS DESCRIPTION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Business Description | ||||||||
Black Hills Power, Inc. (the Company, “we,” “us” or “our”) is an electric utility serving customers in South Dakota, Wyoming and Montana. We are a wholly-owned subsidiary of BHC or the Parent, a public registrant listed on the New York Stock Exchange. | ||||||||
Basis of Presentation | ||||||||
The financial statements include the accounts of Black Hills Power, Inc. and also our ownership interests in the assets, liabilities and expenses of our jointly owned facilities (Note 3) and are prepared in accordance with GAAP. | ||||||||
Use of Estimates and Basis of Presentation | ||||||||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||||||||
Cash Equivalents | ||||||||
We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. | ||||||||
Regulatory Accounting | ||||||||
Our regulated electric operations are subject to regulation by various state and federal agencies. The accounting policies followed are generally subject to the Uniform System of Accounts of FERC. | ||||||||
Our regulated utility operations follow accounting standards for regulated operations and our financial statements reflect the effects of the different rate making principles followed by the various jurisdictions regulating our electric operations. If rate recovery becomes unlikely or uncertain due to competition or regulatory action, these accounting standards may no longer apply to our regulated operations. In the event we determine that we no longer meet the criteria for following accounting standards for regulated operations, the accounting impact to us could be an extraordinary non-cash charge to operations in an amount that could be material. | ||||||||
Regulatory assets are included in Regulatory assets, current and Regulatory assets, non-current on the accompanying Balance Sheets. Regulatory liabilities are included in Regulatory liabilities, current and Regulatory liabilities, non-current on the accompanying Balance Sheets. | ||||||||
We had the following regulatory assets and liabilities as follows as of December 31 (in thousands): | ||||||||
Maximum Recovery Period (in years) | 2014 | 2013 | ||||||
Regulatory assets: | ||||||||
Unamortized loss on reacquired debt (a) | 10 | $ | 2,377 | $ | 2,257 | |||
AFUDC(b) | 45 | 8,365 | 8,327 | |||||
Employee benefit plans(c) (d) | 12 | 24,418 | 15,233 | |||||
Deferred energy costs(a) | 1 | 14,696 | 7,711 | |||||
Flow through accounting(a) | 35 | 11,171 | 9,723 | |||||
Decommissioning costs | 10 | 11,786 | — | |||||
Other regulatory assets(a) | 2 | 5,871 | 2,013 | |||||
Total regulatory assets | $ | 78,684 | $ | 45,264 | ||||
Regulatory liabilities: | ||||||||
Cost of removal for utility plant(a) | 44 | $ | 35,510 | $ | 30,467 | |||
Employee benefit plans(c) (d) | 12 | 14,538 | 10,177 | |||||
Other regulatory liabilities(c) | 13 | 4,941 | 2,874 | |||||
Total regulatory liabilities | $ | 54,989 | $ | 43,518 | ||||
____________________ | ||||||||
(a) Recovery of costs but we are not allowed a rate of return. | ||||||||
(b) | In addition to recovery of costs, we are allowed a rate of return. | |||||||
(c) | In addition to recovery or repayment of costs, we are allowed a return on a portion of this amount or a reduction in rate base, respectively. | |||||||
(d) | Increases are due to a reduction in the discount rate and a change in the mortality tables used in employee benefit plan estimates. | |||||||
Regulatory assets represent items we expect to recover from customers through rates. | ||||||||
Unamortized Loss on Reacquired Debt - The early redemption premium on reacquired bonds is being amortized over the remaining term of the original bonds. | ||||||||
AFUDC - The equity component of AFUDC is considered a permanent difference for tax purposes with the tax benefit being flowed through to customers as prescribed or allowed by regulators. If, based on a regulator’s action, it is probable the utility will recover the future increase in taxes payable represented by this flow-through treatment through a rate revenue increase, a regulatory asset is recognized. This regulatory asset itself is a temporary difference for which a deferred tax liability must be recognized. Accounting standards for income taxes specifically address AFUDC-equity, and require a gross-up of such amounts to reflect the revenue requirement associated with a rate-regulated environment. | ||||||||
Employee Benefit Plans - Employee benefit plans include the unrecognized prior service costs and net actuarial loss associated with our defined benefit pension plans and post-retirement benefit plans in regulatory assets rather than in accumulated other comprehensive income. In addition, this regulatory liability includes the income tax effect of the adjustment required under accounting for compensation-defined benefit plans to record the full pension and post-retirement benefit obligations. Such amounts have been grossed-up to reflect the revenue requirement associated with a rate regulated environment. | ||||||||
Deferred Energy Costs - Deferred energy and fuel cost adjustments represent the cost of electricity delivered to our utility customers that are either higher or lower than the current rates and will be recovered or refunded in future rates. Deferred energy and fuel cost adjustments are recorded and recovered or amortized as approved by the appropriate state commission. | ||||||||
Flow-Through Accounting - Under flow-through accounting, the income tax effects of certain tax items are reflected in our cost of service for the customer in the year in which the tax benefits are realized and result in lower utility rates. This regulatory treatment was applied to the tax benefit generated by repair costs that were previously capitalized for tax purposes in a rate case settlement that was reached in 2010. In this instance, the agreed upon rate increase was less than it would have been absent the flow-through treatment. A regulatory asset established to reflect the future increases in income taxes payable will be recovered from customers as the temporary differences reverse. As a result of this regulatory treatment, we continue to record a tax benefit consistent with the flow-through method with respect to costs considered repairs for tax purposes and are capitalized for book purposes. | ||||||||
Decommissioning Costs - We received approval for regulatory treatment on the remaining net book values of our decommissioned coal plants in 2014. These balances were in Property, Plant and Equipment in 2013. | ||||||||
Regulatory liabilities represent items we expect to refund to customers through probable future decreases in rates. | ||||||||
Cost of Removal for Utility Plant - Cost of removal for utility plant represents the estimated cumulative net provisions for future removal costs included in depreciation expense for which there is no legal obligation for removal. | ||||||||
Employee Benefit Plans - Employee benefit plans represent the cumulative excess of pension and retiree healthcare costs recovered in rates over pension expense recorded in accordance with accounting standards for compensation - retirement benefits. In addition, this regulatory liability includes the income tax effect of the adjustment required under accounting for compensation - defined benefit plans, to record the full pension and post-retirement benefit obligations. Such income tax effect has been grossed-up to account for the revenue requirement aspect of a rate regulated environment. | ||||||||
Accounts Receivable and Allowance for Doubtful Accounts | ||||||||
Accounts receivable consists of sales to residential, commercial, industrial, municipal and other customers all of which do not bear interest. These accounts receivable are stated at billed and unbilled amounts net of write-offs or payment received. | ||||||||
We maintain an allowance for doubtful accounts which reflects our best estimate of uncollectible trade receivables. We regularly review our trade receivable allowances by considering such factors as historical experience, credit worthiness, the age of the receivable balances and current economic conditions that may affect collectibility. The allowance is calculated by applying estimated write-off factors to various classes of outstanding receivables, including unbilled revenue. The write-off factors used to estimate uncollectible accounts are based upon consideration of both historical collections experience and management’s best estimate of future collection success given the existing collections environment. | ||||||||
Following is a summary of accounts receivable at December 31 (in thousands): | ||||||||
2014 | 2013 | |||||||
Accounts receivable trade | $ | 24,946 | $ | 16,300 | ||||
Unbilled revenues | 9,999 | 9,719 | ||||||
Allowance for doubtful accounts | (261 | ) | (220 | ) | ||||
Net accounts receivable trade | $ | 34,684 | $ | 25,799 | ||||
Revenue Recognition | ||||||||
Revenue is recognized when there is persuasive evidence of an arrangement with a fixed or determinable price, delivery has occurred or services have been rendered, and collectibility is reasonably assured. Taxes collected from our customers are recorded on a net basis (excluded from Revenue). | ||||||||
Utility revenues are based on authorized rates approved by the state regulatory agencies and the FERC. Revenues related to the sale, transmission and distribution of energy, and delivery of service are generally recorded when service is rendered or energy is delivered to customers. To the extent that deliveries have occurred but a bill has not been issued, we accrue an estimate of the revenue since the latest billing. This estimate is calculated based upon several factors including billings through the last billing cycle in a month, and prices in effect in our jurisdictions. Each month the estimated unbilled revenue amounts are trued-up and recorded in Receivables- customers, net on the accompanying Balance Sheets. | ||||||||
Materials, Supplies and Fuel | ||||||||
Materials, supplies and fuel used for construction, operation and maintenance purposes are generally stated on a weighted-average cost basis. | ||||||||
Deferred Financing Costs | ||||||||
Deferred financing costs are amortized using the effective interest method over the term of the related debt. | ||||||||
Property, Plant and Equipment | ||||||||
Additions to property, plant and equipment are recorded at cost when placed in service. Included in the cost of regulated construction projects is AFUDC, which represents the approximate composite cost of borrowed funds and a return on equity used to finance a regulated utility project. The cost of regulated electric property, plant and equipment retired, or otherwise disposed of in the ordinary course of business, less salvage, is charged to accumulated depreciation. Removal costs associated with non-legal obligations are reclassified from accumulated depreciation and reflected as regulatory liabilities. Ordinary repairs and maintenance of property, except as allowed under rate regulations, are charged to operations as incurred. | ||||||||
Depreciation provisions for regulated electric property, plant and equipment are computed on a straight-line basis using an annual composite rate of 2.3% in 2014, 2.1% in 2013 and 2.2% in 2012. | ||||||||
Derivatives and Hedging Activities | ||||||||
From time to time we utilize risk management contracts including forward purchases and sales to hedge the price of fuel for our combustion turbines and fixed-for-float swaps to fix the interest on any variable rate debt. Contracts that qualify as derivatives under accounting standards for derivatives, and that are not exempted such as normal purchase/normal sale, are required to be recorded in the balance sheet as either an asset or liability, measured at its fair value. Accounting standards for derivatives require that changes in the derivative instrument’s fair value be recognized currently in earnings unless specific hedge accounting criteria are met. | ||||||||
Accounting standards for derivatives allow hedge accounting for qualifying fair value and cash flow hedges. Gain or loss on a derivative instrument designated and qualifying as a fair value hedging instrument as well as the offsetting loss or gain on the hedged item attributable to the hedged risk should be recognized currently in earnings in the same accounting period. Conversely, the effective portion of the gain or loss on a derivative instrument designated and qualifying as a cash flow hedging instrument should be reported as a component of other comprehensive income and be reclassified into earnings or as a regulatory asset or regulatory liability, net of tax, in the same period or periods during which the hedged forecasted transaction affects earnings. The remaining gain or loss on the derivative instrument, if any, is recognized currently in earnings. | ||||||||
Revenues and expenses on contracts that qualify are designated as normal purchases and normal sales and are recognized when the underlying physical transaction is completed under the accrual basis of accounting. Normal purchases and normal sales are contracts where physical delivery is probable, quantities are expected to be used or sold in the normal course of business over a reasonable amount of time, and price is not tied to an unrelated underlying derivative. As part of our regulated electric operations, we enter into contracts to buy and sell energy to meet the requirements of our customers. These contracts include short-term and long-term commitments to purchase and sell energy in the retail and wholesale markets with the intent and ability to deliver or take delivery. If it was determined that a transaction designated as a normal purchase or normal sale no longer met the exceptions, the fair value of the related contract would be reflected as either an asset or liability, under the accounting standards for derivatives and hedging. | ||||||||
Fair Value Measurements | ||||||||
Accounting standards for fair value measurements provide a single definition of fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date and also requires disclosures and establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The fair value hierarchy ranks the quality and reliability of the information used to determine fair values giving the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). | ||||||||
Financial assets and liabilities carried at fair value are classified and disclosed in one of the following three categories: | ||||||||
Level 1 - Unadjusted quoted prices available in active markets that are accessible at the measurement date for identical unrestricted assets or liabilities. | ||||||||
Level 2 - Pricing inputs include quoted prices for identical or similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and inputs that are derived principally from or corroborated by observable market data by correlation or other means. | ||||||||
Level 3 - Pricing inputs include significant inputs that are generally less observable from objective sources. | ||||||||
Impairment of Long-Lived Assets | ||||||||
We periodically evaluate whether events and circumstances have occurred which may affect the estimated useful life or the recoverability of the remaining balance of our long-lived assets. If such events or circumstances were to indicate that the carrying amount of these assets was not recoverable, we would estimate the future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected future cash flows (undiscounted and without interest charges) was less than the carrying amount of the long-lived assets, we would recognize an impairment loss. | ||||||||
Income Taxes | ||||||||
We file a federal income tax return with other members of the Parent’s consolidated group. For financial statement purposes, federal income taxes are allocated to the individual companies based on amounts calculated on a separate return basis. | ||||||||
We use the liability method in accounting for income taxes. Under the liability method, deferred income taxes are recognized at currently enacted income tax rates, to reflect the tax effect of temporary differences between the financial and tax basis of assets and liabilities, as well as operating loss and tax credit carryforwards. Such temporary differences are the result of provisions in the income tax law that either require or permit certain items to be reported on the income tax return in a different period than they are reported in the financial statements. We classify deferred tax assets and liabilities into current and non-current amounts based on the classification of the related assets and liabilities. | ||||||||
In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized and provides any necessary valuation allowances as required. If we determine that we will be unable to realize all or part of our deferred tax assets in the future, an adjustment to the deferred tax asset would be charged to income in the period such determination was made. Although we believe our assumptions, judgments and estimates are reasonable, changes in tax laws or our interpretations of tax laws and the resolution of current and any future tax audits could significantly impact the amounts provided for income taxes in our consolidated financial statements. With respect to changes in tax law, the TIPA, which was enacted December 19, 2014, did not have a material impact on the amounts provided for income taxes including our ability to realize deferred tax assets. Certain provisions of the TIPA involving primarily the extension of 50% bonus depreciation resulted in the generation of an NOL for federal income tax purposes in 2014. | ||||||||
It is the Parent’s policy to apply the flow-through method of accounting for investment tax credits. Under the flow-through method, investment tax credits are reflected in net income as a reduction to income tax expense in the year they qualify. Another acceptable accounting method and an exception to this general policy is to apply the deferral method whereby the credit is amortized as a reduction of income tax expense over the useful lives of the related property which gave rise to the credits. | ||||||||
We recognize interest income or interest expense and penalties related to income tax matters in Income tax (expense) benefit on the Statements of Income. We account for uncertainty in income taxes recognized in the financial statements in accordance with accounting standards for income taxes. The unrecognized tax benefit is classified in Other - non-current liabilities on the accompanying Balance Sheets. See Note 6 for additional information. | ||||||||
Recently Adopted Accounting Principles and Legislation | ||||||||
Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforwards Exists, ASU 2013-11 | ||||||||
In July 2013, the FASB issued an amendment to accounting for income taxes which provides guidance on financial statement presentation of an unrecognized tax benefit when an NOL carryforward, a similar tax loss, or a tax credit carryforward exists. The objective in issuing this amendment is to eliminate diversity in practice resulting from a lack of guidance on this topic in current GAAP. Under the amendment, an entity must present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, in the financial statements as a reduction to a deferred tax asset for an NOL carryforward, a similar tax loss, or a tax credit carryforward except under certain conditions. The amendment is effective for fiscal years beginning after December 15, 2013 and interim periods within those years, and should be applied to all unrecognized tax benefits that exist as of the effective date. The adoption of this standard did not have any impact on our financial position, results of operations or cash flows. | ||||||||
Final Tangible Property Regulations, Treasury Decision 9636 | ||||||||
In September 2013, the U.S. Treasury issued final regulations addressing the tax consequences associated with amounts paid to acquire, produce, or improve tangible property. The regulations had the effect of a change in law and as a result, the impact should be taken into account in the period of adoption. In general, such regulations apply to tax years beginning on or after January 1, 2014, with early adoption permitted. We implemented all of the provisions of the final regulations with the filing of the 2013 federal income tax return in September 2014. The adoption of the final regulations did not have a material impact on our consolidated financial statements. | ||||||||
In September 2013, the U.S. Treasury issued final regulations addressing the tax consequences associated with amounts paid to acquire, produce, or improve tangible property. The regulations had the effect of a change in law and as a result the impact was taken into account in the period of adoption. In general, such regulations apply to tax years beginning on or after January 1, 2014, with early adoption permitted. We implemented all of the provisions of the final regulations with the filing of the 2013 federal income tax return in September 2014. The adoption of the final regulations did not have a material impact on our financial statements. | ||||||||
Recently Issued Accounting Pronouncements | ||||||||
Revenue from Contracts with Customers, ASU 2014-09 | ||||||||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. The standard provides companies with a single model for use in accounting for revenue arising from contracts with customers and supersedes current revenue recognition guidance, including industry-specific revenue guidance. The core principle of the model is to recognize revenue when control of the goods or services transfers to the customer, as opposed to recognizing revenue when the risks and rewards transfer to the customer under the existing revenue guidance. ASU 2014-09 is effective for annual and interim reporting periods beginning after December 15, 2016 and early adoption is not permitted. We are currently assessing the impact, if any, that ASU 2014-09 will have on our financial position, results of operations or cash flows. |
Property_Plant_and_Equipment
Property, Plant and Equipment | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||
Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT | ||||||||||
Property, plant and equipment at December 31 consisted of the following (dollars in thousands): | |||||||||||
2014 | 2013 | ||||||||||
Weighted | Weighted | ||||||||||
Average | Average | Lives (in years) | |||||||||
2014 | Useful Life (in years) | 2013 | Useful Life (in years) | Minimum | Maximum | ||||||
Electric plant: | |||||||||||
Production | $ | 567,936 | 48 | $ | 512,444 | 51 | 40 | 65 | |||
Transmission | 115,949 | 46 | 115,149 | 46 | 40 | 60 | |||||
Distribution | 336,652 | 39 | 315,971 | 39 | 16 | 45 | |||||
Plant acquisition adjustment (a) | 4,870 | 32 | 4,870 | 32 | 32 | 32 | |||||
General | 79,738 | 22 | 70,228 | 22 | 5 | 33 | |||||
Total plant-in-service | 1,105,145 | 1,018,662 | |||||||||
Construction work in progress | 9,916 | 77,222 | |||||||||
Total electric plant | 1,115,061 | 1,095,884 | |||||||||
Less accumulated depreciation and amortization | (309,767 | ) | (334,174 | ) | |||||||
Electric plant net of accumulated depreciation and amortization | $ | 805,294 | $ | 761,710 | |||||||
__________________ | |||||||||||
(a) | The plant acquisition adjustment is included in rate base and is being recovered with 16 years remaining. |
Jointly_Owned_Facilities
Jointly Owned Facilities | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Jointly Owned Utility Plant, Net Ownership Amount [Abstract] | ||||||||||
Jointly Owned Facilities | JOINTLY OWNED FACILITIES | |||||||||
We use the proportionate consolidation method to account for our percentage interest in the assets, liabilities and expenses of the following facilities: | ||||||||||
• | We own a 20% interest in the Wyodak Plant (the “Plant”), a coal-fired electric generating station located in Campbell County, Wyoming. PacifiCorp owns the remaining ownership percentage and is the operator of the Plant. We receive our proportionate share of the Plant’s capacity and are committed to pay our share of its additions, replacements and operating and maintenance expenses. | |||||||||
• | We own a 35% interest in, and are the operator of, the Converter Station Site and South Rapid City Interconnection (the transmission tie), an AC-DC-AC transmission tie. Basin Electric owns the remaining ownership percentage. The transmission tie provides an interconnection between the Western and Eastern transmission grids, which provides us with access to both the WECC region and the MAPP region. The total transfer capacity of the transmission tie is 400 MW - 200 MW West to East and 200 MW from East to West. We are committed to pay our proportionate share of the additions, replacements and operating and maintenance expenses. | |||||||||
• | We own a 52% interest in the Wygen III power plant. MDU and the City of Gillette each owns an undivided ownership interest in Wygen III and are obligated to make payments for costs associated with administrative services and a proportionate share of the costs of operating the plant for the life of the facility. We retain responsibility for plant operations. | |||||||||
• | We own 55 MW of Cheyenne Prairie, a 95 MW gas-fired power generation facility located in Cheyenne, Wyoming. Cheyenne Light owns the remaining 40 MW. This facility was placed into commercial operations on October 1, 2014. We are committed to pay our proportionate share of the additions, replacements and operating and maintenance expenses. | |||||||||
The investments in our jointly owned plants and accumulated depreciation are included in the corresponding captions in the accompanying Balance Sheets. Our share of direct expenses of the Plants is included in the corresponding categories of operating expenses in the accompanying Statements of Income. Each of the respective owners is responsible for providing its own financing. | ||||||||||
As of December 31, 2014, our interests in jointly-owned generating facilities and transmission systems included on our Balance Sheets were as follows (in thousands): | ||||||||||
Interest in jointly-owned facilities | Plant in Service | Construction Work in Progress | Accumulated Depreciation | |||||||
Wyodak Plant | $ | 110,123 | $ | 1,201 | $ | 53,816 | ||||
Transmission Tie | $ | 19,648 | $ | — | $ | 4,976 | ||||
Wygen III | $ | 136,220 | $ | 29 | $ | 13,811 | ||||
Cheyenne Prairie | $ | 89,617 | $ | — | $ | 657 | ||||
Long_term_Debt
Long term Debt | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Long-term Debt, Unclassified [Abstract] | ||||||||||
Long term Debt | LONG-TERM DEBT | |||||||||
Long-term debt outstanding at December 31 was as follows (in thousands): | ||||||||||
Maturity Date | Interest Rate | 2014 | 2013 | |||||||
First Mortgage Bonds due 2032 | August 15, 2032 | 7.23 | % | $ | 75,000 | $ | 75,000 | |||
First Mortgage Bonds due 2039 | November 1, 2039 | 6.125 | % | 180,000 | 180,000 | |||||
First Mortgage Bonds due 2044 | October 20, 2044 | 4.43 | % | 85,000 | — | |||||
Unamortized discount, First Mortgage Bonds due 2039 | (103 | ) | (107 | ) | ||||||
Pollution control revenue bonds due 2024 | October 1, 2024 | 5.35 | % | — | 12,200 | |||||
Series 94A Debt(a) | June 1, 2024 | 0.75 | % | 2,855 | 2,855 | |||||
Long-term debt | $ | 342,752 | $ | 269,948 | ||||||
___________________ | ||||||||||
(a) | Variable interest rate at December 31, 2014. | |||||||||
On October 1, 2014 we issued $85 million of 4.43% coupon first mortgage bonds due October 20, 2044. Proceeds from our bond sale funded the early redemption of our 5.35% $12 million pollution control revenue bonds, originally due October 1, 2024. | ||||||||||
Net deferred financing costs of approximately $3.3 million and $2.8 million were recorded on the accompanying Balance Sheets in Other, non-current assets at December 31, 2014 and 2013, respectively, and are being amortized over the term of the debt. Amortization of deferred financing costs of approximately $0.1 million, $0.1 million and $0.2 million for the years ended December 31, 2014, 2013 and 2012, respectively, are included in Interest expense on the accompanying Statements of Income. | ||||||||||
Substantially all of our property is subject to the lien of the indenture securing our first mortgage bonds. First mortgage bonds may be issued in amounts limited by property, earnings and other provisions of the mortgage indentures. We were in compliance with our debt covenants at December 31, 2014. | ||||||||||
Long-term Debt Maturities | ||||||||||
Scheduled maturities of our outstanding long-term debt (excluding unamortized discounts) are as follows (in thousands): | ||||||||||
2015 | $ | — | ||||||||
2016 | $ | — | ||||||||
2017 | $ | — | ||||||||
2018 | $ | — | ||||||||
2019 | $ | — | ||||||||
Thereafter | $ | 342,855 | ||||||||
Fair_Value_of_Finacial_Instrum
Fair Value of Finacial Instruments | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||
Fair Value of Financial Instruments | FAIR VALUE OF FINANCIAL INSTRUMENTS | ||||||||||||
The estimated fair values of our financial instruments at December 31 were as follows (in thousands): | |||||||||||||
2014 | 2013 | ||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||
Cash and cash equivalents (a) | $ | 6,620 | $ | 6,620 | $ | 2,259 | $ | 2,259 | |||||
Long-term debt, including current maturities (b) | $ | 342,752 | $ | 430,497 | $ | 269,948 | $ | 317,531 | |||||
_______________ | |||||||||||||
(a) | Fair value approximates carrying value due to either short-term length of maturity or variable interest rates that approximate prevailing market rates and therefore is classified in Level 1 in the fair value hierarchy. | ||||||||||||
(b) | Long-term debt is valued using the market approach based on observable inputs of quoted market prices and yields available for debt instruments either directly or indirectly for similar maturities and debt ratings in active markets and therefore is classified in Level 2 in the fair value hierarchy. The carrying amount of our variable rate debt approximates fair value due to the variable interest rates with short reset periods. For additional information on our long-term debt, see Note 4 to the Financial Statements. | ||||||||||||
The following methods and assumptions were used to estimate the fair value of each class of our financial instruments. | |||||||||||||
Cash and Cash Equivalents | |||||||||||||
Included in cash and cash equivalents is cash and overnight repurchase agreement accounts. As part of our cash management process, excess operating cash is invested in overnight repurchase agreements with our bank. Repurchase agreements are not deposits and are not insured by the U.S. Government, the FDIC or any other government agency and involve investment risk including possible loss of principal. We believe however, that the market risk arising from holding these financial instruments is minimal. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Income Tax Disclosure [Abstract] | ||||||||||
Income Taxes | INCOME TAXES | |||||||||
Income tax expense (benefit) from continuing operations for the years ended December 31 was as follows (in thousands): | ||||||||||
2014 | 2013 | 2012 | ||||||||
Current | $ | (6 | ) | $ | (163 | ) | $ | (10,319 | ) | |
Deferred | 16,518 | 13,582 | 24,628 | |||||||
Total income tax expense | $ | 16,512 | $ | 13,419 | $ | 14,309 | ||||
The temporary differences which gave rise to the net deferred tax liability, for the years ended December 31 were as follows (in thousands): | ||||||||||
2014 | 2013 | |||||||||
Deferred tax assets: | ||||||||||
Employee benefits | $ | 4,995 | $ | 4,567 | ||||||
Net operating loss | 14,794 | 4,197 | ||||||||
Regulatory liabilities | 10,824 | 6,398 | ||||||||
Other | 2,864 | 2,193 | ||||||||
Total deferred tax assets | 33,477 | 17,355 | ||||||||
Deferred tax liabilities: | ||||||||||
Accelerated depreciation and other plant related differences | (184,478 | ) | (161,990 | ) | ||||||
AFUDC | (8,365 | ) | (8,190 | ) | ||||||
Regulatory assets | (3,910 | ) | (3,540 | ) | ||||||
Employee benefits | (3,723 | ) | (3,467 | ) | ||||||
Deferred costs | (11,324 | ) | (4,240 | ) | ||||||
Other | (1,058 | ) | (1,067 | ) | ||||||
Total deferred tax liabilities | (212,858 | ) | (182,494 | ) | ||||||
Net deferred tax assets (liabilities) | $ | (179,381 | ) | $ | (165,139 | ) | ||||
The effective tax rate differs from the federal statutory rate for the years ended December 31, as follows: | ||||||||||
2014 | 2013 | 2012 | ||||||||
Federal statutory rate | 35 | % | 35 | % | 35 | % | ||||
Amortization of excess deferred and investment tax credits | (0.3 | ) | (0.3 | ) | (0.3 | ) | ||||
Equity AFUDC | (0.1 | ) | — | (0.1 | ) | |||||
Flow through adjustments (a) | (1.9 | ) | (2.5 | ) | (3.5 | ) | ||||
Prior year deferred adjustment (b) | — | — | 3.6 | |||||||
Tax credits | (0.2 | ) | (0.8 | ) | — | |||||
Other | 0.5 | (0.6 | ) | (0.1 | ) | |||||
33 | % | 30.8 | % | 34.6 | % | |||||
_________________________ | ||||||||||
(a) | The flow-through adjustments relate primarily to an accounting method change for tax purposes that allows us to take a current tax deduction for repair costs that continue to be capitalized for book purposes. We recorded a deferred income tax liability in recognition of the temporary difference created between book and tax treatment and we flowed the tax benefit through to our customers in the form of lower rates as a result of a rate case settlement that occurred during 2010. A regulatory asset was established to reflect the recovery of future increases in taxes payable from customers as the temporary differences reverse. As a result of this regulatory treatment, we continue to record a tax benefit consistent with the flow through method. | |||||||||
(b) | The adjustment was a non-recurring unfavorable true-up attributable to property related deferred income taxes. The removal of the impact of such an adjustment is more appropriately reflective of the effective rate on a recurring basis. | |||||||||
The following table reconciles the total amounts of unrecognized tax benefits, without interest, included in Other deferred credits and other liabilities on the accompanying Balance Sheet (in thousands): | ||||||||||
2014 | 2013 | |||||||||
Unrecognized tax benefits at January 1 | $ | 2,443 | $ | 2,078 | ||||||
Additions for prior year tax positions | 434 | — | ||||||||
Reductions for prior year tax positions | (1,254 | ) | (155 | ) | ||||||
Additions for current year tax positions | — | 520 | ||||||||
Unrecognized tax benefits at December 31 | $ | 1,623 | $ | 2,443 | ||||||
The reductions for prior year tax positions relate to the reversal through otherwise allowed tax depreciation. The total amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate is approximately $0.5 million. | ||||||||||
It is our continuing practice to recognize interest and/or penalties related to income tax matters in income tax expense. During the years ended December 31, 2014 and 2013, the interest expense recognized was not material to our financial results. | ||||||||||
We file income tax returns in the United States federal jurisdictions as a member of the BHC consolidated group. We do not anticipate that total unrecognized tax benefits will significantly change due to settlement of any audits or the expiration of statutes of limitations prior to December 31, 2015. | ||||||||||
At December 31, 2014, we have federal NOL carry forward of $42 million, a portion of which will expire in 2031. Ultimate usage of this NOL depends upon our ability to generate future taxable income, which is expected to occur within the prescribed carryforward period. |
Comprehensive_Income
Comprehensive Income | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||
Comprehensive Income | COMPREHENSIVE INCOME | |||||||||
The components of the reclassification adjustments for the period, net of tax, included in Other Comprehensive Income were as follows (in thousands): | ||||||||||
Derivatives Designated as Cash Flow Hedges | Amounts Reclassified from AOCI | |||||||||
2014 | 2013 | |||||||||
Gains and Losses on cash flow hedges | ||||||||||
Interest rate swaps gain (loss) | Interest expense | $ | 64 | $ | 64 | |||||
Income tax | Income tax benefit (expense) | (364 | ) | (23 | ) | |||||
Total reclassification adjustments related to cash flow hedges, net of tax | $ | (300 | ) | $ | 41 | |||||
Amortization of defined benefit plans: | ||||||||||
Actuarial gain (loss) | Operations and maintenance | $ | 45 | $ | 66 | |||||
Income tax | Income tax benefit (expense) | (16 | ) | (23 | ) | |||||
Total reclassification adjustments related to defined benefit plans, net of tax | $ | 29 | $ | 43 | ||||||
Derivatives designated as cash flow hedges relate to a treasury lock entered into in August 2002 to hedge $50 million of our First Mortgage Bonds due on August 15, 2032. The treasury lock cash settled on August 8, 2002, the bond pricing date, and resulted in a $1.8 million loss. The treasury lock is treated as a cash flow hedge and the resulting loss is carried in Accumulated Other Comprehensive Loss and is being amortized over the life of the related bonds. | ||||||||||
Balances by classification included within Accumulated other comprehensive loss on the accompanying Balance Sheets were as follows (in thousands): | ||||||||||
Interest Rate Swaps | Employee Benefit Plans | Total | ||||||||
As of December 31, 2013 | $ | (719 | ) | $ | (478 | ) | $ | (1,197 | ) | |
Other comprehensive income (loss) | (299 | ) | (323 | ) | (622 | ) | ||||
As of December 31, 2014 | $ | (1,018 | ) | $ | (801 | ) | $ | (1,819 | ) | |
Interest Rate Swaps | Employee Benefit Plans | Total | ||||||||
As of December 31, 2012 | $ | (760 | ) | $ | (660 | ) | $ | (1,420 | ) | |
Other comprehensive income (loss) | 41 | 182 | 223 | |||||||
As of December 31, 2013 | $ | (719 | ) | $ | (478 | ) | $ | (1,197 | ) |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ||||||||||||||||||||||||||||
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS | |||||||||||||||||||||||||||
Funded Status of Benefit Plans | ||||||||||||||||||||||||||||
The funded status of the postretirement benefit plan is required to be recognized in the statement of financial position. The funded status for the pension plan is measured as the difference between the projected benefit obligation and the fair value of plan assets. The funded status for all other benefit plans is measured as the difference between the accumulated benefit obligation and the fair value of plan assets. A liability is recorded for an amount by which the benefit obligation exceeds the fair value of plan assets or an asset is recorded for any amount by which the fair value of plan assets exceeds the benefit obligation. The measurement date of the plans is December 31, our year-end balance sheet date. As of December 31, 2014, the unfunded status of our Defined Benefit Pension Plan was $12 million, the unfunded status of our Supplemental Non-qualified Defined Benefit Plans was $3.6 million and the unfunded status of our Non-pension Defined Benefit Postretirement Healthcare Plans was $6.0 million. | ||||||||||||||||||||||||||||
We apply accounting standards for regulated operations, and accordingly, the unrecognized net periodic benefit cost that would have been reclassified to Accumulated other comprehensive income (loss) was alternatively recorded as a regulatory asset or regulatory liability, net of tax. | ||||||||||||||||||||||||||||
Defined Benefit Pension Plan | ||||||||||||||||||||||||||||
We have a defined benefit pension plan (“Pension Plan”) covering certain eligible employees. The benefits for the Pension Plan are based on years of service and calculations of average earnings during a specific time period prior to retirement. The Pension Plan has been frozen to new employees and certain employees who did not meet age and service based criteria. | ||||||||||||||||||||||||||||
Pension Plan assets are held in a Master Trust that was established for the investment of assets of the Plan and other Employer-sponsored retirement plans. Each participating retirement plan has an undivided interest in the Master Trust. | ||||||||||||||||||||||||||||
The BHC Board of Directors have approved the Plans’ investment policy. The objective of the investment policy is to manage assets in such a way that will allow the eventual settlement of our obligations to the Pension Plans’ beneficiaries. To meet this objective, our pension assets are managed by an outside adviser using a portfolio strategy that will provide liquidity to meet the Plans’ benefit payment obligations. The Pension Plans’ assets consist primarily of equity, fixed income and hedged investments. The expected long-term rate of return for investments was 6.75% and 7.25% for the 2014 and 2013 plan years, respectively. Our Pension Plan funding policy is in accordance with the federal government’s funding requirements. | ||||||||||||||||||||||||||||
Pension Plan Assets | ||||||||||||||||||||||||||||
The percentages of total plan asset fair value by investment category of our Pension Plan assets at December 31 were as follows: | ||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||
Equity securities | 27 | % | 26 | % | ||||||||||||||||||||||||
Real estate | 5 | 4 | ||||||||||||||||||||||||||
Fixed income funds | 58 | 58 | ||||||||||||||||||||||||||
Cash and cash equivalents | 2 | 1 | ||||||||||||||||||||||||||
Hedge funds | 8 | 11 | ||||||||||||||||||||||||||
Total | 100 | % | 100 | % | ||||||||||||||||||||||||
Supplemental Non-qualified Defined Benefit Retirement Plans | ||||||||||||||||||||||||||||
We have various supplemental retirement plans (“Supplemental Plans”) for key executives. The Supplemental Plans are non-qualified defined benefit plans. The Supplemental Plans are subject to various vesting schedules. | ||||||||||||||||||||||||||||
Supplemental Plan Assets | ||||||||||||||||||||||||||||
We fund our Supplemental Plans on a cash basis as benefits are paid. | ||||||||||||||||||||||||||||
Non-pension Defined Benefit Postretirement Healthcare Plan | ||||||||||||||||||||||||||||
Employees who are participants in our Non-Pension Postretirement Healthcare Plan (“Healthcare Plan”) and who retire on or after attaining minimum age and years of service requirements are entitled to postretirement healthcare benefits. These benefits are subject to premiums, deductibles, co-payment provisions and other limitations. We may amend or change the Healthcare Plan periodically. We are not pre-funding our retiree medical plan. We have determined that the Healthcare Plan’s post-65 retiree prescription drug plans are actuarially equivalent and qualify for the Medicare Part D subsidy. | ||||||||||||||||||||||||||||
Plan Assets | ||||||||||||||||||||||||||||
We fund our Healthcare Plans on a cash basis as benefits are paid. | ||||||||||||||||||||||||||||
Plan Contributions and Estimated Cash Flows | ||||||||||||||||||||||||||||
Cash contributions for pension plans are made directly to the Pension Plan Trust accounts. Healthcare and Supplemental Plan contributions are made in the form of benefit payments. Contributions for the years ended December 31 were as follows (in thousands): | ||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||
Defined Benefit Plans | ||||||||||||||||||||||||||||
Defined Benefit Pension Plan | $ | 1,696 | $ | 2,299 | ||||||||||||||||||||||||
Non-pension Defined Benefit Postretirement Healthcare Plan | $ | 399 | $ | 578 | ||||||||||||||||||||||||
Supplemental Non-qualified Defined Benefit Plan | $ | 217 | $ | 217 | ||||||||||||||||||||||||
Defined Contribution Plans | ||||||||||||||||||||||||||||
Company Retirement Contribution | $ | 638 | $ | 421 | ||||||||||||||||||||||||
Matching Contributions | $ | 1,377 | $ | 1,301 | ||||||||||||||||||||||||
Although we are not required we expect to contribute approximately $1.7 million to our Defined Benefit Pension Plan in 2015. | ||||||||||||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||||||||||
As required by accounting standards for fair value measurements, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect their placement within the fair value hierarchy levels. The following tables set forth, by level within the fair value hierarchy, the assets that were accounted for at fair value on a recurring basis as of December 31 (in thousands): | ||||||||||||||||||||||||||||
Defined Benefit Pension Plan | 2014 | |||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total Fair Value | |||||||||||||||||||||||||
AXA Equitable General Fixed Income | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||
Common Collective Trust - Cash and Cash Equivalents | — | 899 | — | 899 | ||||||||||||||||||||||||
Common Collective Trust - Equity | — | 16,107 | — | 16,107 | ||||||||||||||||||||||||
Common Collective Trust - Fixed Income | — | 34,474 | — | 34,474 | ||||||||||||||||||||||||
Common Collective Trust - Real Estate | — | 761 | 1,918 | 2,679 | ||||||||||||||||||||||||
Hedge Funds | — | — | 4,939 | 4,939 | ||||||||||||||||||||||||
Total investments measured at fair value | $ | — | $ | 52,241 | $ | 6,857 | $ | 59,098 | ||||||||||||||||||||
Defined Benefit Pension Plan | 2013 | |||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total Fair Value | |||||||||||||||||||||||||
AXA Equitable General Fixed Income | $ | — | $ | 213 | $ | — | $ | 213 | ||||||||||||||||||||
Common Collective Trust - Cash and Cash Equivalents | — | 252 | — | 252 | ||||||||||||||||||||||||
Common Collective Trust - Equity | — | 14,833 | — | 14,833 | ||||||||||||||||||||||||
Common Collective Trust - Fixed Income | — | 32,742 | — | 32,742 | ||||||||||||||||||||||||
Common Collective Trust - Real Estate | — | 682 | 1,718 | 2,400 | ||||||||||||||||||||||||
Hedge Funds | — | — | 5,965 | 5,965 | ||||||||||||||||||||||||
Total investments measured at fair value | $ | — | $ | 48,722 | $ | 7,683 | $ | 56,405 | ||||||||||||||||||||
Cash and Cash Equivalents: This category is comprised of the AXA Equitable General Fixed Income Fund and Common Collective Trusts - cash and cash equivalents. The AXA Equitable General Fixed Income Fund is a fund of diversified portfolios, primarily composed of fixed income instruments. Assets are invested in long-term holdings, such as commercial, agricultural and residential mortgages, publicly traded and privately place bonds and real estate as well as short-term bonds. Fair values of mortgage loans are measured by discounting future contractual cash flows to be received on the mortgage loans using interest rates at which loans with similar characteristics have. The discount rate is derived from taking the appropriate U.S. Treasury rate with a like term. The fair value of public fixed maturity securities are generally based on prices obtained from independent valuation service providers with reasonableness prices compared with directly observable market trades. The fair value of privately placed securities are determined using a discounted cash flow model. These models use observable inputs with a discount rate based upon the average of spread surveys collected from private market intermediaries and industry sector of the issuer. | ||||||||||||||||||||||||||||
Common Collective Trust: These funds are valued based upon the redemption price of units held by the Plan, which is based on the current fair value of the common collective trust funds’ underlying assets. Unit values are determined by the financial institution sponsoring such funds by dividing the fund’s net assets at fair value by its units outstanding at the valuation dates. The Plan’s investments in common collective trust funds, with the exception of shares of the common collective trust-real estate are categorized as Level 2. | ||||||||||||||||||||||||||||
Common Collective Trust - Real Estate Fund: This fund is valued based on various factors of the underlying real estate properties, including market rent, market rent growth, occupancy levels, etc. As part of the trustee’s valuation process, properties are externally appraised generally on an annual basis. The appraisals are conducted by reputable independent appraisal firms and signed by appraisers that are members of the Appraisal Institute, with professional designation of Member, Appraisal Institute. All external appraisals are performed in accordance with the Uniform Standards of Professional Appraisal Practices. We receive monthly statements from the trustee, along with the annual schedule of investments, and rely on these reports for pricing the units of the fund. Certain of the funds’ assets contain participant withdrawal policy and, therefore, are categorized as Level 3. The funds without participant withdrawal limitations are categorized as Level 2. | ||||||||||||||||||||||||||||
Hedge Funds: Hedge funds represent investments in other investment funds that seek a return utilizing a number of diverse investment strategies. The strategies, when combined aim to reduce volatility and risk while attempting to deliver positive returns under all market conditions. Amounts are reported on a one-month lag. The fair value of hedge funds is determined using net asset value per share based on the fair value of the hedge fund’s underlying investments. Generally, shares may be redeemed at the end of each quarter, after a lockup period of one-year, with a 65 day notice and are limited to a percentage of total net asset value of the fund. The net asset values are based on the fair value of each fund’s underlying investments. There are no unfunded commitments related to these hedge funds. The Plan’s investment in the hedge fund is categorized as Level 3. | ||||||||||||||||||||||||||||
The following table sets forth a summary of changes in the fair value of the Defined Benefit Pension Plans’ Level 3 assets for the period ended December 31 (in thousands): | ||||||||||||||||||||||||||||
2014 | ||||||||||||||||||||||||||||
Balance, beginning of period | $ | 7,683 | ||||||||||||||||||||||||||
Transfers | — | |||||||||||||||||||||||||||
Purchase | 98 | |||||||||||||||||||||||||||
Unrealized gain (loss) | 461 | |||||||||||||||||||||||||||
Realized gain (loss) | 76 | |||||||||||||||||||||||||||
Settlements | (1,461 | ) | ||||||||||||||||||||||||||
Balance, end of period | $ | 6,857 | ||||||||||||||||||||||||||
The following table presents the quantitative information about Level 3 fair value measurements (dollars in thousands): | ||||||||||||||||||||||||||||
Fair Value at | Valuation | Level 3 | Range (Weighted) | |||||||||||||||||||||||||
31-Dec-14 | Technique | Input | Average | |||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||
Common Collective Trust - Real Estate (a) | $ | 1,918 | Market Approach | Redemption Restriction | N/A | |||||||||||||||||||||||
Hedge Funds (b) | $ | 4,939 | Market Approach | Redemption Restriction | N/A | |||||||||||||||||||||||
_____________ | ||||||||||||||||||||||||||||
(a) | The underlying net asset value in the Common Collective Trust - Real Estate fund is determined by appraisal of the properties held in the Trust. As part of the Trustee's valuation process, properties are externally appraised generally on an annual basis. The appraisals are conducted by reputable independent appraisal firms and signed by appraisers that are members of the Appraisal Institute, with the professional designation of Member, Appraisal Institute. All external appraisals are performed in accordance with the Uniform Standards of Professional Appraisal Practices. We receive monthly statements from the Trustee along with the annual schedule of investments and rely on these reports for pricing the units of the fund. The fund does contain a participant withdrawal policy. | |||||||||||||||||||||||||||
(b) | The fair value the Hedge Funds is determined based on pricing provided or reviewed by third-party administrator to our investment managers. While the input amounts used by the pricing vendor in determining fair value are not provided, and therefore, unavailable for our review, the asset results are reviewed and monitored to ensure the fair values are reasonable and in line with market experience in similar asset classes. Additionally, the audited financial statements of the funds are reviewed annually as they are issued. | |||||||||||||||||||||||||||
Plan Reconciliations | ||||||||||||||||||||||||||||
The following tables provide a reconciliation of the Employee Benefit Plan’s obligations and fair value of assets, components of the net periodic expense and elements of regulatory assets and liabilities and AOCI (in thousands): | ||||||||||||||||||||||||||||
Benefit Obligations | ||||||||||||||||||||||||||||
Defined Benefit Pension Plan | Supplemental Non-qualified Defined Benefit Retirement Plans | Non-pension Defined Benefit Postretirement Healthcare Plan | ||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
Change in benefit obligation: | ||||||||||||||||||||||||||||
Projected benefit obligation at beginning of year | $ | 60,223 | $ | 69,820 | $ | 3,131 | $ | 3,427 | $ | 5,850 | $ | 6,766 | ||||||||||||||||
Service cost | 704 | 852 | — | — | 222 | 216 | ||||||||||||||||||||||
Interest cost | 2,991 | 2,969 | 146 | 133 | 241 | 239 | ||||||||||||||||||||||
Actuarial loss (gain) | 11,879 | (7,818 | ) | 540 | (212 | ) | 115 | (459 | ) | |||||||||||||||||||
Amendments (a) | — | — | — | — | — | (342 | ) | |||||||||||||||||||||
Benefits paid | (4,452 | ) | (4,850 | ) | (218 | ) | (217 | ) | (488 | ) | (1,045 | ) | ||||||||||||||||
Asset transfer (to) from affiliate | (167 | ) | (750 | ) | — | — | 24 | (75 | ) | |||||||||||||||||||
Medicare Part D adjustment | — | — | — | — | (15 | ) | 82 | |||||||||||||||||||||
Plan participants’ contributions | — | — | — | — | 89 | 468 | ||||||||||||||||||||||
Projected benefit obligation at end of year | $ | 71,178 | $ | 60,223 | $ | 3,599 | $ | 3,131 | $ | 6,038 | $ | 5,850 | ||||||||||||||||
_______________ | ||||||||||||||||||||||||||||
(a) | Reflects Board of Directors approval of increase to Company’s contribution to RMSA account. | |||||||||||||||||||||||||||
A reconciliation of the fair value of Plan assets (as of the December 31 measurement date) is as follows (in thousands): | ||||||||||||||||||||||||||||
Defined Benefit Pension Plan | Supplemental Non-qualified Defined Benefit Retirement Plans | Non-pension Defined Benefit Postretirement Healthcare Plan | ||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
Beginning market value of plan assets | $ | 56,405 | $ | 53,465 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Investment income | 5,462 | 6,070 | — | — | — | — | ||||||||||||||||||||||
Benefits paid | (4,452 | ) | (4,850 | ) | — | — | — | — | ||||||||||||||||||||
Employer contributions | 1,696 | 2,299 | — | — | — | — | ||||||||||||||||||||||
Asset transfer to affiliate | (13 | ) | (579 | ) | — | — | — | — | ||||||||||||||||||||
Ending market value of plan assets | $ | 59,098 | $ | 56,405 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Amounts recognized in the Balance Sheets at December 31 consist of (in thousands): | ||||||||||||||||||||||||||||
Defined Benefit Pension Plan | Supplemental Non-qualified Defined Benefit Retirement Plans | Non-pension Defined Benefit Postretirement Plan | ||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
Regulatory asset (liability) | $ | 22,717 | $ | 13,735 | $ | — | $ | — | $ | 2,306 | $ | 2,781 | ||||||||||||||||
Current liability | $ | — | $ | — | $ | (217 | ) | $ | (216 | ) | $ | (519 | ) | $ | (491 | ) | ||||||||||||
Non-current liability | $ | (12,080 | ) | $ | (3,818 | ) | $ | (3,382 | ) | $ | (2,915 | ) | $ | (5,519 | ) | $ | (5,372 | ) | ||||||||||
Accumulated Benefit Obligation (in thousands) | ||||||||||||||||||||||||||||
Defined Benefit Pension Plan | Supplemental Non-qualified Defined Benefit Retirement Plans | Non-pension Defined Benefit Postretirement Healthcare Plan | ||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
Accumulated benefit obligation | $ | 65,699 | $ | 55,283 | $ | 3,599 | $ | 3,131 | $ | 6,038 | $ | 5,850 | ||||||||||||||||
Components of Net Periodic Expense (in thousands) | ||||||||||||||||||||||||||||
Defined Benefit Pension Plan | Supplemental Non-qualified Defined Benefit Retirement Plans | Non-pension Defined Benefit Postretirement Healthcare Plan | ||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||
Service cost | $ | 704 | $ | 852 | $ | 765 | $ | — | $ | — | $ | — | $ | 222 | $ | 216 | $ | 214 | ||||||||||
Interest cost | 2,991 | 2,969 | 2,969 | 146 | 133 | 104 | 241 | 239 | 343 | |||||||||||||||||||
Expected return on assets | (3,702 | ) | (3,764 | ) | (3,139 | ) | — | — | — | — | — | — | ||||||||||||||||
Amortization of prior service cost (credits) | 43 | 43 | 57 | — | — | — | (335 | ) | (278 | ) | (278 | ) | ||||||||||||||||
Amortization of transition obligation | — | 2,609 | — | — | — | — | — | — | — | |||||||||||||||||||
Recognized net actuarial loss (gain) | 940 | — | 2,599 | 45 | 66 | 55 | — | 9 | 139 | |||||||||||||||||||
Net periodic expense | $ | 976 | $ | 2,709 | $ | 3,251 | $ | 191 | $ | 199 | $ | 159 | $ | 128 | $ | 186 | $ | 418 | ||||||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||||||||||
Amounts included in AOCI, after-tax, that have not yet been recognized as components of net periodic benefit cost at December 31 were as follows (in thousands): | ||||||||||||||||||||||||||||
Defined Benefit Pension Plan | Supplemental Non-qualified Defined Benefit Retirement Plans | Non-pension Defined Benefit Postretirement Healthcare Plan | ||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
Net loss | $ | — | $ | — | $ | (801 | ) | $ | (479 | ) | $ | — | $ | — | ||||||||||||||
Prior service cost | — | — | — | — | — | — | ||||||||||||||||||||||
Total accumulated other comprehensive income (loss) | $ | — | $ | — | $ | (801 | ) | $ | (479 | ) | $ | — | $ | — | ||||||||||||||
The amounts in AOCI, regulatory assets or regulatory liabilities, after-tax, expected to be recognized as a component of net periodic benefit cost during calendar year 2015 are as follows (in thousands): | ||||||||||||||||||||||||||||
Defined Benefits Pension Plan | Supplemental Non-qualified Defined Benefit Retirement Plans | Non-pension Defined Benefit Postretirement Healthcare Plan | ||||||||||||||||||||||||||
Net gain (loss) | $ | 1,428 | $ | 61 | $ | — | ||||||||||||||||||||||
Prior service cost | 27 | — | (218 | ) | ||||||||||||||||||||||||
Total net periodic benefit cost expected to be recognized during calendar year 2015 | $ | 1,455 | $ | 61 | $ | (218 | ) | |||||||||||||||||||||
Assumptions | ||||||||||||||||||||||||||||
Defined Benefit Pension Plan | Supplemental Non-qualified Defined Benefit Retirement Plans | Non-pension Defined Benefit Postretirement Healthcare Plan | ||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||
Weighted-average assumptions used to determine benefit obligations: | ||||||||||||||||||||||||||||
Discount rate | 4.25 | % | 5.1 | % | 4.35 | % | 3.98 | % | 4.68 | % | 4.25 | % | 3.7 | % | 4.45 | % | 3.65 | % | ||||||||||
Rate of increase in compensation levels | 3.86 | % | 3.86 | % | 3.91 | % | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||
Weighted-average assumptions used to determine net periodic benefit cost for plan year: | ||||||||||||||||||||||||||||
Discount rate | 5.1 | % | 4.35 | % | 4.65 | % | 4.68 | % | 3.88 | % | 4.7 | % | 4.45 | % | 3.65 | % | 4.35 | % | ||||||||||
Expected long-term rate of return on assets (a) | 6.75 | % | 7.25 | % | 7.25 | % | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||
Rate of increase in compensation levels | 3.86 | % | 3.91 | % | 3.67 | % | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||
_____________________________ | ||||||||||||||||||||||||||||
(a) | The expected rate of return on plan assets is 6.75% for the calculation of the 2015 net periodic pension cost. | |||||||||||||||||||||||||||
The healthcare benefit obligation was determined at December 31 as follows: | ||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||
Healthcare trend rate pre-65 | ||||||||||||||||||||||||||||
Trend for next year | 7.5 | % | 7.5 | % | ||||||||||||||||||||||||
Ultimate trend rate | 4.5 | % | 4.5 | % | ||||||||||||||||||||||||
Year Ultimate Trend Reached | 2027 | 2027 | ||||||||||||||||||||||||||
Healthcare trend rate post-65 | ||||||||||||||||||||||||||||
Trend for next year | 6.25 | % | 6.25 | % | ||||||||||||||||||||||||
Ultimate trend rate | 4.5 | % | 4.5 | % | ||||||||||||||||||||||||
Year Ultimate Trend Reached | 2024 | 2026 | ||||||||||||||||||||||||||
We do not pre-fund our post-retirement benefit plan. The table below shows the estimated impacts of an increase or decrease to our healthcare trend rate for our Retiree Health Care Plan (in thousands): | ||||||||||||||||||||||||||||
Change in Assumed Trend Rate | Service and Interest Costs | Accumulated Periodic Postretirement Benefit Obligation | ||||||||||||||||||||||||||
1% increase | $ | 8 | $ | 195 | ||||||||||||||||||||||||
1% decrease | $ | (8 | ) | $ | (178 | ) | ||||||||||||||||||||||
The following benefit payments, which reflect future service, are expected to be paid (in thousands): | ||||||||||||||||||||||||||||
Defined Benefit Pension Plan | Supplemental Non-qualified Defined Benefit Retirement Plans | Non-pension Defined Benefit Postretirement Healthcare Plan | ||||||||||||||||||||||||||
2015 | $ | 3,303 | $ | 217 | $ | 519 | ||||||||||||||||||||||
2016 | $ | 3,330 | $ | 217 | $ | 509 | ||||||||||||||||||||||
2017 | $ | 3,455 | $ | 248 | $ | 502 | ||||||||||||||||||||||
2018 | $ | 3,575 | $ | 246 | $ | 569 | ||||||||||||||||||||||
2019 | $ | 3,749 | $ | 244 | $ | 610 | ||||||||||||||||||||||
2020-2024 | $ | 21,109 | $ | 1,547 | $ | 2,847 | ||||||||||||||||||||||
Defined Contribution Plan | ||||||||||||||||||||||||||||
The Parent sponsors a 401(k) retirement savings plan in which our employees may participate. Participants may elect to invest up to 50% of their eligible compensation on a pre-tax or after-tax basis, up to a maximum amount established by the Internal Revenue Service. The plan provides for company matching contributions and company retirement contributions. Employer contributions vest at 20% per year and are fully vested when the participant has 5 years of service. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Related Party Transactions [Abstract] | ||||||||||
Related Party Transactions | RELATED-PARTY TRANSACTIONS | |||||||||
Non-Cash Dividend to Parent | ||||||||||
In 2014, no non-cash dividends were made to our Parent. We recorded a non-cash dividend to our Parent for approximately $8 million in 2013 and decreased the utility money pool note receivable, net for approximately $8 million, in 2013. | ||||||||||
Receivables and Payables | ||||||||||
We have accounts receivable and accounts payable balances related to transactions with other BHC subsidiaries. These balances as of December 31 were as follows (in thousands): | ||||||||||
2014 | 2013 | |||||||||
Receivable - affiliates | $ | 5,350 | $ | 4,934 | ||||||
Accounts payable - affiliates | $ | 19,242 | $ | 21,082 | ||||||
Money Pool Notes Receivable and Notes Payable | ||||||||||
We have a Utility Money Pool Agreement (the Agreement) with BHC, Cheyenne Light and Black Hills Utility Holdings. Under the agreement, we may borrow from BHC however the Agreement restricts us from loaning funds to BHC or to any of BHCs’ non-utility subsidiaries. The Agreement does not restrict us from making dividends to BHC. Borrowings under the agreement bear interest at the weighted average daily cost of our parent company’s credit facility borrowings as defined under the Agreement, or if there are no external funds outstanding on that date, then the rate will be the daily one month LIBOR rate plus 1.0%. | ||||||||||
The cost of borrowing under the Utility Money Pool was 1.36% at December 31, 2014. | ||||||||||
We had the following balances with the Utility Money Pool as of December 31 (in thousands): | ||||||||||
2014 | 2013 | |||||||||
Notes receivable (payable), net | $ | 68,626 | $ | 17,292 | ||||||
Net interest income (expense) relating to the Utility Money Pool for the years ended December 31, was as follows (in thousands): | ||||||||||
2014 | 2013 | 2012 | ||||||||
Net interest income (expense) | $ | 304 | $ | 505 | $ | 617 | ||||
Other Balances and Transactions | ||||||||||
We have the following Power Purchase and Transmission Services Agreements with affiliated entities: | ||||||||||
• | An agreement, expiring September 3, 2028, with Cheyenne Light to acquire 15 MW of the facility output from Happy Jack. Under a separate inter-company agreement expiring on September 3, 2028, Cheyenne Light has agreed to sell up to 15 MW of the facility output from Happy Jack to us. | |||||||||
• | An agreement, expiring September 30, 2029, with Cheyenne Light to acquire 20 MW of the facility output from Silver Sage. Under a separate inter-company agreement expiring on September 30, 2029, Cheyenne Light has agreed to sell 20 MW of energy from Silver Sage to us. | |||||||||
• | A Generation Dispatch Agreement with Cheyenne Light that requires us to purchase all of Cheyenne Light’s excess energy. | |||||||||
Related-party Gas Transportation Service Agreement | ||||||||||
On October 1, 2014, we entered into a gas transportation service agreement with Cheyenne Light in connection with gas supply for Cheyenne Prairie. The agreement is for a term of 40 years, in which we pay a monthly service and facility fee for firm and interruptible gas transportation. | ||||||||||
We had the following related party transactions for the years ended December 31 included in the corresponding captions in the accompanying Statements of Income: | ||||||||||
2014 | 2013 | 2012 | ||||||||
(in thousands) | ||||||||||
Revenues: | ||||||||||
Energy sold to Cheyenne Light | $ | 1,894 | $ | 1,338 | $ | 2,372 | ||||
Rent from electric properties | $ | 4,102 | $ | 3,627 | $ | 2,661 | ||||
Purchases: | ||||||||||
Purchase of coal from WRDC | $ | 16,861 | $ | 18,542 | $ | 20,690 | ||||
Purchase of excess energy from Cheyenne Light | $ | 3,033 | $ | 3,640 | $ | 3,139 | ||||
Purchase of renewable wind energy from Cheyenne Light - Happy Jack | $ | 1,959 | $ | 1,886 | $ | 1,988 | ||||
Purchase of renewable wind energy from Cheyenne Light - Silver Sage | $ | 3,200 | $ | 3,207 | $ | 3,269 | ||||
Corporate support services from Parent, Black Hills Service Company and Black Hills Utility Holdings | $ | 32,332 | $ | 30,738 | $ | 24,163 | ||||
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Supplemental Cash Flow Information [Abstract] | ||||||||||
Supplemental Cash Flow Information | SUPPLEMENTAL CASH FLOW INFORMATION | |||||||||
Years ended December 31, | 2014 | 2013 | 2012 | |||||||
(in thousands) | ||||||||||
Non-cash investing and financing activities - | ||||||||||
Property, plant and equipment acquired with accrued liabilities | $ | 4,234 | $ | 13,590 | $ | 3,969 | ||||
Non-cash decrease to money pool note receivable, net | $ | — | $ | (8,000 | ) | $ | (43,984 | ) | ||
Non-cash dividend to Parent company | $ | — | $ | 8,000 | $ | 43,984 | ||||
Supplemental disclosure of cash flow information: | ||||||||||
Cash (paid) refunded during the period for - | ||||||||||
Interest (net of amounts capitalized) | $ | (19,573 | ) | $ | (19,174 | ) | $ | (17,099 | ) | |
Income taxes | $ | — | $ | 219 | $ | 7,176 | ||||
Commitment_and_Contingencies
Commitment and Contingencies | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES | ||||||||||
Power Purchase and Transmission Services Agreements | |||||||||||
We have the following power purchase and transmission agreements, not including related party agreements, as of December 31, 2014 (see Note 9 for information on related party agreements): | |||||||||||
• | A PPA with PacifiCorp expiring on December 31, 2023, which provides for the purchase by us of 50 MW of electric capacity and energy. The price paid for the capacity and energy is based on the operating costs of one of PacifiCorp’s coal-fired electric generating plants; | ||||||||||
• | A firm point-to-point transmission access agreement to deliver up to 50 MW of power on PacifiCorp’s transmission system to wholesale customers in the western region through December 31, 2023; and | ||||||||||
• | An agreement with Thunder Creek for gas transport capacity, expiring in October 31, 2019. | ||||||||||
Costs incurred under these agreements were as follows for the years ended December 31 (in thousands): | |||||||||||
Contract | Contract Type | 2014 | 2013 | 2012 | |||||||
PacifiCorp | Electric capacity and energy | $ | 13,943 | $ | 13,026 | $ | 13,224 | ||||
PacifiCorp | Transmission access | $ | 1,227 | $ | 1,384 | $ | 1,215 | ||||
Thunder Creek | Gas transport capacity | $ | 633 | $ | 633 | $ | 633 | ||||
Future Contractual Obligations | |||||||||||
The following is a schedule of future minimum payments required under the power purchase, transmission services, facility and vehicle leases, and gas supply agreements (in thousands): | |||||||||||
2015 | $ | 12,443 | |||||||||
2016 | $ | 12,443 | |||||||||
2017 | $ | 12,443 | |||||||||
2018 | $ | 6,135 | |||||||||
2019 | $ | 6,037 | |||||||||
Thereafter | $ | 21,998 | |||||||||
Long-Term Power Sales Agreements | |||||||||||
We have the following power sales agreements as of December 31, 2014: | |||||||||||
• | An agreement with MDU to supply up to a maximum of 25 MW on a cost reimbursement basis during periods of reduced production at Wygen III; | ||||||||||
• | A capacity and energy agreement with MDU through December 31, 2023 to supply up to a maximum of 50 MW; | ||||||||||
• | An agreement with the City of Gillette to supply its first 23 MW on a cost reimbursement basis during periods of reduced production at Wygen III. Under this agreement, we will also provide the City of Gillette their operating component of spinning reserves; | ||||||||||
• | A unit-contingent energy and capacity sales agreement with MEAN expiring on May 31, 2023. This contract is based on up to 10 MW from Neil Simpson II and up to 10 MW from Wygen III based on the availability of these plants. The energy and capacity purchase requirements decrease over the term of the agreement; and | ||||||||||
• | A PPA with MEAN, expiring on April 1, 2015. Under this contract, MEAN purchases 5 MW of unit-contingent energy and capacity from Neil Simpson II and 5 MW of unit-contingent capacity from Wygen III. | ||||||||||
Oil Creek Fire | |||||||||||
On June 29, 2012, a forest and grassland fire occurred in the western Black Hills of Wyoming. A fire investigator retained by the Weston County Fire Protection District concluded that the fire was caused by the failure of a transmission structure owned, operated and maintained by Black Hills Power. On April 16, 2013, a large group of private landowners filed suit in the United States District Court for the District of Wyoming. There are approximately 36 Plaintiff groups (including property jointly owned by multiple family members or entities), or approximately 73 individually named private plaintiffs. In addition, the State of Wyoming has intervened in the lawsuit. Both the private landowners and the State of Wyoming assert claims for damages against us. The claims include allegations of negligence, negligence per se, common law nuisance and trespass. In addition to claims for compensatory damages, the lawsuit seeks recovery of punitive damages. We have denied and will vigorously defend all claims arising out of the fire. We cannot predict the outcome of our investigation, the viability of alleged claims or the outcome of the litigation. | |||||||||||
Civil litigation of this kind, however, is likely to lead to settlement negotiations, including negotiations prompted by pre-trial civil court procedures. We believe such negotiations would effect a settlement of all claims. Regardless of whether the litigation is determined at trial or through settlement, we expect to incur significant investigation, legal and expert services expenses associated with the litigation. We maintain insurance coverage to limit our exposure to losses due to civil liability claims, and related litigation expense. We expect this coverage to limit our exposure and we will pursue recoveries to the maximum extent available under the policies. The deductible applicable to some types of claims arising out of this fire is $1.0 million. Based upon information currently available, we believe that a loss associated with settlement of pending claims is probable. Accordingly, as of September 30, 2014, we recorded a loss contingency liability related to these claims and we recorded a receivable for costs we believe are reimbursable and probable of recovery under our insurance coverage. Both of these entries reflect our reasonable estimate of probable future litigation expense and settlement costs; we did not base these contingencies on any determination that it is probable we would be found liable for these claims were they to be litigated. | |||||||||||
Given the uncertainty of litigation, however, a loss related to the fire, the litigation and related claims in excess of the loss we have determined to be probable is reasonably possible. We cannot reasonably estimate the amount of such possible loss because our investigation and review of damage claims documentation is ongoing, and there are significant factual and legal issues to be resolved. Further claims may be presented by these claimants and other parties. We have received claims seeking recovery for fire suppression, reclamation and rehabilitation costs, damage to fencing and other personal property, alleged injury to timber, grass or hay, livestock and related operations, and diminished value of real estate, currently totaling $55 million. We are not yet able to reasonably estimate the amount of any reasonable possible losses in excess of the amount we have accrued. Based upon information currently available, however, management does not expect the outcome of the claims to have a material adverse effect upon our financial condition, results of operations or cash flows. | |||||||||||
Legal Proceedings | |||||||||||
In the normal course of business, we are subject to various lawsuits, actions, proceedings, claims and other matters asserted under laws and regulations. We believe the amounts provided in the consolidated financial statements to satisfy alleged liabilities are adequate in light of the probable and estimable contingencies. However, there can be no assurance that the actual amounts required to satisfy alleged liabilities from various legal proceedings, claims and other matters discussed, and to comply with applicable laws and regulations will not exceed the amounts reflected in the consolidated financial statements. | |||||||||||
In the normal course of business, we enter into agreements that include indemnification in favor of third parties, such as information technology agreements, purchase and sale agreements and lease contracts. We have also agreed to indemnify our directors, officers and employees in accordance with our articles of incorporation, as amended. Certain agreements do not contain any limits on our liability and therefore, it is not possible to estimate our potential liability under these indemnifications. In certain cases, we have recourse against third parties with respect to these indemnities. Further, we maintain insurance policies that may provide coverage against certain claims under these indemnities. | |||||||||||
Environmental Matters | |||||||||||
We are subject to costs resulting from a number of federal, state and local laws and regulations which affect future planning and existing operations. They can result in increased capital expenditures, operating and other costs as a result of compliance, remediation and monitoring obligations. Due to the environmental issues discussed below, we may be required to modify, curtail, replace or cease operating certain facilities or operations to comply with statutes, regulations and other requirements of regulatory bodies. | |||||||||||
Air | |||||||||||
Our generation facilities are subject to federal, state and local laws and regulations relating to the protection of air quality. These laws and regulations cover, among other pollutants, carbon monoxide, SO2, NOx, mercury particulate matter and GHG. Power generating facilities burning fossil fuels emit each of the foregoing pollutants and, therefore, are subject to substantial regulation and enforcement oversight by various governmental agencies. | |||||||||||
Title IV of the Clean Air Act applies to several of our generation facilities, including the Neil Simpson II, Neil Simpson CT, Lange CT, Wygen III and Wyodak plants. Title IV of the Clean Air Act created an SO2 allowance trading program as part of the federal acid rain program. Without purchasing additional allowances, we currently hold sufficient allowances to satisfy Title IV at all such plants through 2044. | |||||||||||
The EPA issued the Industrial and Commercial Boiler Regulations for Area Sources of Hazardous Air Pollutants, with updates which impose emission limits, fuel requirements and monitoring requirements. The rule had a compliance deadline of March 21, 2014. In anticipation of this rule, we suspended operations at the Osage plant on October 1, 2010 and as a result of this rule, we suspended operations at the Ben French facility on August 31, 2012. We permanently retired Ben French, Osage and Neil Simpson I on March 21, 2014. While the net book value of these plants is estimated to be insignificant at the time of retirement, we would reasonably expect any remaining value to be recovered through future rates. | |||||||||||
Solid Waste Disposal | |||||||||||
Various materials used at our facilities are subject to disposal regulations. Our Osage plant, at which operations have been suspended, has an on-site ash impoundment that is near capacity. An application to close the impoundment was approved by the State of Wyoming on April 13, 2012. Site closure work was completed in 2013 and post closure monitoring activities will continue for 30 years. In September 2013, Osage also received a permit to close the small industrial rubble landfill. Site work was completed and post closure monitoring will continue for 30 years. |
Quarterly_Historical_Data_Unau
Quarterly Historical Data (Unaudited) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Selected Quarterly Financial Information [Abstract] | |||||||||||||
Quarterly Historical Data (Unaudited) | QUARTERLY HISTORICAL DATA (Unaudited) | ||||||||||||
We operate on a calendar year basis. The following table sets forth selected unaudited historical operating results data for each quarter (in thousands): | |||||||||||||
First | Second | Third | Fourth | ||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||
2014 | |||||||||||||
Operating revenues | $ | 71,267 | $ | 60,741 | $ | 67,729 | $ | 68,751 | |||||
Operating income | $ | 17,546 | $ | 13,782 | $ | 19,007 | $ | 18,779 | |||||
Net income | $ | 8,643 | $ | 6,230 | $ | 9,916 | $ | 8,773 | |||||
2013 | |||||||||||||
Operating revenues | $ | 59,817 | $ | 60,832 | $ | 67,268 | $ | 66,110 | |||||
Operating income | $ | 12,503 | $ | 14,293 | $ | 18,704 | $ | 16,844 | |||||
Net income | $ | 5,582 | $ | 6,652 | $ | 9,298 | $ | 8,641 | |||||
Schedule_II_Valuation_and_Qual
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Valuation and Qualifying Accounts [Abstract] | |||||||||||||
Schedule II - Valuation and Qualifying Accounts | |||||||||||||
BLACK HILLS POWER, INC. | |||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||
YEARS ENDED DECEMBER 31, | |||||||||||||
Description | Balance at beginning of year | Additions charged to costs and expenses | Deductions charged to costs and expenses | Balance at end of year | |||||||||
(in thousands) | |||||||||||||
Allowance for doubtful accounts: | |||||||||||||
2014 | $ | 220 | $ | 699 | $ | (658 | ) | $ | 261 | ||||
2013 | $ | 102 | $ | 754 | $ | (636 | ) | $ | 220 | ||||
2012 | $ | 143 | $ | 503 | $ | (544 | ) | $ | 102 | ||||
Business_Description_and_Summa1
Business Description and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation |
The financial statements include the accounts of Black Hills Power, Inc. and also our ownership interests in the assets, liabilities and expenses of our jointly owned facilities (Note 3) and are prepared in accordance with GAAP. | |
Use of Estimates and Basis of Presentation | Use of Estimates and Basis of Presentation |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
Cash Equivalents | Cash Equivalents |
We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. | |
Regulatory Accounting | Regulatory Accounting |
Our regulated electric operations are subject to regulation by various state and federal agencies. The accounting policies followed are generally subject to the Uniform System of Accounts of FERC. | |
Our regulated utility operations follow accounting standards for regulated operations and our financial statements reflect the effects of the different rate making principles followed by the various jurisdictions regulating our electric operations. If rate recovery becomes unlikely or uncertain due to competition or regulatory action, these accounting standards may no longer apply to our regulated operations. In the event we determine that we no longer meet the criteria for following accounting standards for regulated operations, the accounting impact to us could be an extraordinary non-cash charge to operations in an amount that could be material. | |
Regulatory assets are included in Regulatory assets, current and Regulatory assets, non-current on the accompanying Balance Sheets. Regulatory liabilities are included in Regulatory liabilities, current and Regulatory liabilities, non-current on the accompanying Balance Sheets. | |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts |
Accounts receivable consists of sales to residential, commercial, industrial, municipal and other customers all of which do not bear interest. These accounts receivable are stated at billed and unbilled amounts net of write-offs or payment received. | |
We maintain an allowance for doubtful accounts which reflects our best estimate of uncollectible trade receivables. We regularly review our trade receivable allowances by considering such factors as historical experience, credit worthiness, the age of the receivable balances and current economic conditions that may affect collectibility. The allowance is calculated by applying estimated write-off factors to various classes of outstanding receivables, including unbilled revenue. The write-off factors used to estimate uncollectible accounts are based upon consideration of both historical collections experience and management’s best estimate of future collection success given the existing collections environment. | |
Revenue Recognition | Revenue Recognition |
Revenue is recognized when there is persuasive evidence of an arrangement with a fixed or determinable price, delivery has occurred or services have been rendered, and collectibility is reasonably assured. Taxes collected from our customers are recorded on a net basis (excluded from Revenue). | |
Utility revenues are based on authorized rates approved by the state regulatory agencies and the FERC. Revenues related to the sale, transmission and distribution of energy, and delivery of service are generally recorded when service is rendered or energy is delivered to customers. To the extent that deliveries have occurred but a bill has not been issued, we accrue an estimate of the revenue since the latest billing. This estimate is calculated based upon several factors including billings through the last billing cycle in a month, and prices in effect in our jurisdictions. Each month the estimated unbilled revenue amounts are trued-up and recorded in Receivables- customers, net on the accompanying Balance Sheets. | |
Materials, Supplies, and Fuel | Materials, Supplies and Fuel |
Materials, supplies and fuel used for construction, operation and maintenance purposes are generally stated on a weighted-average cost basis. | |
Deferred Financing Costs | Deferred Financing Costs |
Deferred financing costs are amortized using the effective interest method over the term of the related debt. | |
Property, Plant and Equipment | Property, Plant and Equipment |
Additions to property, plant and equipment are recorded at cost when placed in service. Included in the cost of regulated construction projects is AFUDC, which represents the approximate composite cost of borrowed funds and a return on equity used to finance a regulated utility project. The cost of regulated electric property, plant and equipment retired, or otherwise disposed of in the ordinary course of business, less salvage, is charged to accumulated depreciation. Removal costs associated with non-legal obligations are reclassified from accumulated depreciation and reflected as regulatory liabilities. Ordinary repairs and maintenance of property, except as allowed under rate regulations, are charged to operations as incurred. | |
Depreciation provisions for regulated electric property, plant and equipment are computed on a straight-line basis using an annual composite rate of 2.3% in 2014, 2.1% in 2013 and 2.2% in 2012. | |
Derivatives and Hedging Activities | Derivatives and Hedging Activities |
From time to time we utilize risk management contracts including forward purchases and sales to hedge the price of fuel for our combustion turbines and fixed-for-float swaps to fix the interest on any variable rate debt. Contracts that qualify as derivatives under accounting standards for derivatives, and that are not exempted such as normal purchase/normal sale, are required to be recorded in the balance sheet as either an asset or liability, measured at its fair value. Accounting standards for derivatives require that changes in the derivative instrument’s fair value be recognized currently in earnings unless specific hedge accounting criteria are met. | |
Accounting standards for derivatives allow hedge accounting for qualifying fair value and cash flow hedges. Gain or loss on a derivative instrument designated and qualifying as a fair value hedging instrument as well as the offsetting loss or gain on the hedged item attributable to the hedged risk should be recognized currently in earnings in the same accounting period. Conversely, the effective portion of the gain or loss on a derivative instrument designated and qualifying as a cash flow hedging instrument should be reported as a component of other comprehensive income and be reclassified into earnings or as a regulatory asset or regulatory liability, net of tax, in the same period or periods during which the hedged forecasted transaction affects earnings. The remaining gain or loss on the derivative instrument, if any, is recognized currently in earnings. | |
Revenues and expenses on contracts that qualify are designated as normal purchases and normal sales and are recognized when the underlying physical transaction is completed under the accrual basis of accounting. Normal purchases and normal sales are contracts where physical delivery is probable, quantities are expected to be used or sold in the normal course of business over a reasonable amount of time, and price is not tied to an unrelated underlying derivative. As part of our regulated electric operations, we enter into contracts to buy and sell energy to meet the requirements of our customers. These contracts include short-term and long-term commitments to purchase and sell energy in the retail and wholesale markets with the intent and ability to deliver or take delivery. If it was determined that a transaction designated as a normal purchase or normal sale no longer met the exceptions, the fair value of the related contract would be reflected as either an asset or liability, under the accounting standards for derivatives and hedging. | |
Fair Value Measurements | Fair Value Measurements |
Accounting standards for fair value measurements provide a single definition of fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date and also requires disclosures and establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The fair value hierarchy ranks the quality and reliability of the information used to determine fair values giving the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). | |
Financial assets and liabilities carried at fair value are classified and disclosed in one of the following three categories: | |
Level 1 - Unadjusted quoted prices available in active markets that are accessible at the measurement date for identical unrestricted assets or liabilities. | |
Level 2 - Pricing inputs include quoted prices for identical or similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and inputs that are derived principally from or corroborated by observable market data by correlation or other means. | |
Level 3 - Pricing inputs include significant inputs that are generally less observable from objective sources. | |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets |
We periodically evaluate whether events and circumstances have occurred which may affect the estimated useful life or the recoverability of the remaining balance of our long-lived assets. If such events or circumstances were to indicate that the carrying amount of these assets was not recoverable, we would estimate the future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected future cash flows (undiscounted and without interest charges) was less than the carrying amount of the long-lived assets, we would recognize an impairment loss. | |
Income Taxes | Income Taxes |
We file a federal income tax return with other members of the Parent’s consolidated group. For financial statement purposes, federal income taxes are allocated to the individual companies based on amounts calculated on a separate return basis. | |
We use the liability method in accounting for income taxes. Under the liability method, deferred income taxes are recognized at currently enacted income tax rates, to reflect the tax effect of temporary differences between the financial and tax basis of assets and liabilities, as well as operating loss and tax credit carryforwards. Such temporary differences are the result of provisions in the income tax law that either require or permit certain items to be reported on the income tax return in a different period than they are reported in the financial statements. We classify deferred tax assets and liabilities into current and non-current amounts based on the classification of the related assets and liabilities. | |
In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized and provides any necessary valuation allowances as required. If we determine that we will be unable to realize all or part of our deferred tax assets in the future, an adjustment to the deferred tax asset would be charged to income in the period such determination was made. Although we believe our assumptions, judgments and estimates are reasonable, changes in tax laws or our interpretations of tax laws and the resolution of current and any future tax audits could significantly impact the amounts provided for income taxes in our consolidated financial statements. With respect to changes in tax law, the TIPA, which was enacted December 19, 2014, did not have a material impact on the amounts provided for income taxes including our ability to realize deferred tax assets. Certain provisions of the TIPA involving primarily the extension of 50% bonus depreciation resulted in the generation of an NOL for federal income tax purposes in 2014. | |
It is the Parent’s policy to apply the flow-through method of accounting for investment tax credits. Under the flow-through method, investment tax credits are reflected in net income as a reduction to income tax expense in the year they qualify. Another acceptable accounting method and an exception to this general policy is to apply the deferral method whereby the credit is amortized as a reduction of income tax expense over the useful lives of the related property which gave rise to the credits. | |
We recognize interest income or interest expense and penalties related to income tax matters in Income tax (expense) benefit on the Statements of Income. We account for uncertainty in income taxes recognized in the financial statements in accordance with accounting standards for income taxes. The unrecognized tax benefit is classified in Other - non-current liabilities on the accompanying Balance Sheets. |
Business_Description_and_Summa2
Business Description and Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||
Schedule of Regulatory Assets and Liabilities | We had the following regulatory assets and liabilities as follows as of December 31 (in thousands): | |||||||
Maximum Recovery Period (in years) | 2014 | 2013 | ||||||
Regulatory assets: | ||||||||
Unamortized loss on reacquired debt (a) | 10 | $ | 2,377 | $ | 2,257 | |||
AFUDC(b) | 45 | 8,365 | 8,327 | |||||
Employee benefit plans(c) (d) | 12 | 24,418 | 15,233 | |||||
Deferred energy costs(a) | 1 | 14,696 | 7,711 | |||||
Flow through accounting(a) | 35 | 11,171 | 9,723 | |||||
Decommissioning costs | 10 | 11,786 | — | |||||
Other regulatory assets(a) | 2 | 5,871 | 2,013 | |||||
Total regulatory assets | $ | 78,684 | $ | 45,264 | ||||
Regulatory liabilities: | ||||||||
Cost of removal for utility plant(a) | 44 | $ | 35,510 | $ | 30,467 | |||
Employee benefit plans(c) (d) | 12 | 14,538 | 10,177 | |||||
Other regulatory liabilities(c) | 13 | 4,941 | 2,874 | |||||
Total regulatory liabilities | $ | 54,989 | $ | 43,518 | ||||
____________________ | ||||||||
(a) Recovery of costs but we are not allowed a rate of return. | ||||||||
(b) | In addition to recovery of costs, we are allowed a rate of return. | |||||||
(c) | In addition to recovery or repayment of costs, we are allowed a return on a portion of this amount or a reduction in rate base, respectively. | |||||||
(d) | Increases are due to a reduction in the discount rate and a change in the mortality tables used in employee benefit plan estimates. | |||||||
Schedule of Accounts, Notes, Loans and Financing Receivable | Following is a summary of accounts receivable at December 31 (in thousands): | |||||||
2014 | 2013 | |||||||
Accounts receivable trade | $ | 24,946 | $ | 16,300 | ||||
Unbilled revenues | 9,999 | 9,719 | ||||||
Allowance for doubtful accounts | (261 | ) | (220 | ) | ||||
Net accounts receivable trade | $ | 34,684 | $ | 25,799 | ||||
Propety_Plant_Equipment_Tables
Propety Plant Equipment (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||
Property, Plant and Equipment | Property, plant and equipment at December 31 consisted of the following (dollars in thousands): | ||||||||||
2014 | 2013 | ||||||||||
Weighted | Weighted | ||||||||||
Average | Average | Lives (in years) | |||||||||
2014 | Useful Life (in years) | 2013 | Useful Life (in years) | Minimum | Maximum | ||||||
Electric plant: | |||||||||||
Production | $ | 567,936 | 48 | $ | 512,444 | 51 | 40 | 65 | |||
Transmission | 115,949 | 46 | 115,149 | 46 | 40 | 60 | |||||
Distribution | 336,652 | 39 | 315,971 | 39 | 16 | 45 | |||||
Plant acquisition adjustment (a) | 4,870 | 32 | 4,870 | 32 | 32 | 32 | |||||
General | 79,738 | 22 | 70,228 | 22 | 5 | 33 | |||||
Total plant-in-service | 1,105,145 | 1,018,662 | |||||||||
Construction work in progress | 9,916 | 77,222 | |||||||||
Total electric plant | 1,115,061 | 1,095,884 | |||||||||
Less accumulated depreciation and amortization | (309,767 | ) | (334,174 | ) | |||||||
Electric plant net of accumulated depreciation and amortization | $ | 805,294 | $ | 761,710 | |||||||
__________________ | |||||||||||
(a) | The plant acquisition adjustment is included in rate base and is being recovered with 16 years remaining. |
Jointly_Owned_Facilities_Table
Jointly Owned Facilities (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Jointly Owned Utility Plant, Net Ownership Amount [Abstract] | ||||||||||
Schedule Of Jointly Owned Facilities | As of December 31, 2014, our interests in jointly-owned generating facilities and transmission systems included on our Balance Sheets were as follows (in thousands): | |||||||||
Interest in jointly-owned facilities | Plant in Service | Construction Work in Progress | Accumulated Depreciation | |||||||
Wyodak Plant | $ | 110,123 | $ | 1,201 | $ | 53,816 | ||||
Transmission Tie | $ | 19,648 | $ | — | $ | 4,976 | ||||
Wygen III | $ | 136,220 | $ | 29 | $ | 13,811 | ||||
Cheyenne Prairie | $ | 89,617 | $ | — | $ | 657 | ||||
Long_Term_Debt_Tables
Long Term Debt (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Long-term Debt, Unclassified [Abstract] | ||||||||||
Schedule of Long-term Debt Instruments | Long-term debt outstanding at December 31 was as follows (in thousands): | |||||||||
Maturity Date | Interest Rate | 2014 | 2013 | |||||||
First Mortgage Bonds due 2032 | August 15, 2032 | 7.23 | % | $ | 75,000 | $ | 75,000 | |||
First Mortgage Bonds due 2039 | November 1, 2039 | 6.125 | % | 180,000 | 180,000 | |||||
First Mortgage Bonds due 2044 | October 20, 2044 | 4.43 | % | 85,000 | — | |||||
Unamortized discount, First Mortgage Bonds due 2039 | (103 | ) | (107 | ) | ||||||
Pollution control revenue bonds due 2024 | October 1, 2024 | 5.35 | % | — | 12,200 | |||||
Series 94A Debt(a) | June 1, 2024 | 0.75 | % | 2,855 | 2,855 | |||||
Long-term debt | $ | 342,752 | $ | 269,948 | ||||||
___________________ | ||||||||||
(a) | Variable interest rate at December 31, 2014. | |||||||||
On October 1, 2014 we issued $85 million of 4.43% coupon first mortgage bonds due October 20, 2044. Proceeds from our bond sale funded the early redemption of our 5.35% $12 million pollution control revenue bonds, originally due October 1, 2024. | ||||||||||
Schedule of Maturities of Long-term Debt | Scheduled maturities of our outstanding long-term debt (excluding unamortized discounts) are as follows (in thousands): | |||||||||
2015 | $ | — | ||||||||
2016 | $ | — | ||||||||
2017 | $ | — | ||||||||
2018 | $ | — | ||||||||
2019 | $ | — | ||||||||
Thereafter | $ | 342,855 | ||||||||
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||
Fair Value of Financial Instruments | The estimated fair values of our financial instruments at December 31 were as follows (in thousands): | ||||||||||||
2014 | 2013 | ||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||
Cash and cash equivalents (a) | $ | 6,620 | $ | 6,620 | $ | 2,259 | $ | 2,259 | |||||
Long-term debt, including current maturities (b) | $ | 342,752 | $ | 430,497 | $ | 269,948 | $ | 317,531 | |||||
_______________ | |||||||||||||
(a) | Fair value approximates carrying value due to either short-term length of maturity or variable interest rates that approximate prevailing market rates and therefore is classified in Level 1 in the fair value hierarchy. | ||||||||||||
(b) | Long-term debt is valued using the market approach based on observable inputs of quoted market prices and yields available for debt instruments either directly or indirectly for similar maturities and debt ratings in active markets and therefore is classified in Level 2 in the fair value hierarchy. The carrying amount of our variable rate debt approximates fair value due to the variable interest rates with short reset periods. For additional information on our long-term debt, see Note 4 to the Financial Statements. |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Income Tax Disclosure [Abstract] | ||||||||||
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense (benefit) from continuing operations for the years ended December 31 was as follows (in thousands): | |||||||||
2014 | 2013 | 2012 | ||||||||
Current | $ | (6 | ) | $ | (163 | ) | $ | (10,319 | ) | |
Deferred | 16,518 | 13,582 | 24,628 | |||||||
Total income tax expense | $ | 16,512 | $ | 13,419 | $ | 14,309 | ||||
Schedule of Deferred Tax Assets and Liabilities | The temporary differences which gave rise to the net deferred tax liability, for the years ended December 31 were as follows (in thousands): | |||||||||
2014 | 2013 | |||||||||
Deferred tax assets: | ||||||||||
Employee benefits | $ | 4,995 | $ | 4,567 | ||||||
Net operating loss | 14,794 | 4,197 | ||||||||
Regulatory liabilities | 10,824 | 6,398 | ||||||||
Other | 2,864 | 2,193 | ||||||||
Total deferred tax assets | 33,477 | 17,355 | ||||||||
Deferred tax liabilities: | ||||||||||
Accelerated depreciation and other plant related differences | (184,478 | ) | (161,990 | ) | ||||||
AFUDC | (8,365 | ) | (8,190 | ) | ||||||
Regulatory assets | (3,910 | ) | (3,540 | ) | ||||||
Employee benefits | (3,723 | ) | (3,467 | ) | ||||||
Deferred costs | (11,324 | ) | (4,240 | ) | ||||||
Other | (1,058 | ) | (1,067 | ) | ||||||
Total deferred tax liabilities | (212,858 | ) | (182,494 | ) | ||||||
Net deferred tax assets (liabilities) | $ | (179,381 | ) | $ | (165,139 | ) | ||||
Schedule of Effective Income Tax Rate Reconciliation | The effective tax rate differs from the federal statutory rate for the years ended December 31, as follows: | |||||||||
2014 | 2013 | 2012 | ||||||||
Federal statutory rate | 35 | % | 35 | % | 35 | % | ||||
Amortization of excess deferred and investment tax credits | (0.3 | ) | (0.3 | ) | (0.3 | ) | ||||
Equity AFUDC | (0.1 | ) | — | (0.1 | ) | |||||
Flow through adjustments (a) | (1.9 | ) | (2.5 | ) | (3.5 | ) | ||||
Prior year deferred adjustment (b) | — | — | 3.6 | |||||||
Tax credits | (0.2 | ) | (0.8 | ) | — | |||||
Other | 0.5 | (0.6 | ) | (0.1 | ) | |||||
33 | % | 30.8 | % | 34.6 | % | |||||
_________________________ | ||||||||||
(a) | The flow-through adjustments relate primarily to an accounting method change for tax purposes that allows us to take a current tax deduction for repair costs that continue to be capitalized for book purposes. We recorded a deferred income tax liability in recognition of the temporary difference created between book and tax treatment and we flowed the tax benefit through to our customers in the form of lower rates as a result of a rate case settlement that occurred during 2010. A regulatory asset was established to reflect the recovery of future increases in taxes payable from customers as the temporary differences reverse. As a result of this regulatory treatment, we continue to record a tax benefit consistent with the flow through method. | |||||||||
(b) | The adjustment was a non-recurring unfavorable true-up attributable to property related deferred income taxes. The removal of the impact of such an adjustment is more appropriately reflective of the effective rate on a recurring basis. | |||||||||
Summary of Deferred Tax Liability Not Recognized | The following table reconciles the total amounts of unrecognized tax benefits, without interest, included in Other deferred credits and other liabilities on the accompanying Balance Sheet (in thousands): | |||||||||
2014 | 2013 | |||||||||
Unrecognized tax benefits at January 1 | $ | 2,443 | $ | 2,078 | ||||||
Additions for prior year tax positions | 434 | — | ||||||||
Reductions for prior year tax positions | (1,254 | ) | (155 | ) | ||||||
Additions for current year tax positions | — | 520 | ||||||||
Unrecognized tax benefits at December 31 | $ | 1,623 | $ | 2,443 | ||||||
Comprehensive_Income_Tables
Comprehensive Income (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||
Reclassification out of Accumulated Other Comprehensive Income | The components of the reclassification adjustments for the period, net of tax, included in Other Comprehensive Income were as follows (in thousands): | |||||||||
Derivatives Designated as Cash Flow Hedges | Amounts Reclassified from AOCI | |||||||||
2014 | 2013 | |||||||||
Gains and Losses on cash flow hedges | ||||||||||
Interest rate swaps gain (loss) | Interest expense | $ | 64 | $ | 64 | |||||
Income tax | Income tax benefit (expense) | (364 | ) | (23 | ) | |||||
Total reclassification adjustments related to cash flow hedges, net of tax | $ | (300 | ) | $ | 41 | |||||
Amortization of defined benefit plans: | ||||||||||
Actuarial gain (loss) | Operations and maintenance | $ | 45 | $ | 66 | |||||
Income tax | Income tax benefit (expense) | (16 | ) | (23 | ) | |||||
Total reclassification adjustments related to defined benefit plans, net of tax | $ | 29 | $ | 43 | ||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | Balances by classification included within Accumulated other comprehensive loss on the accompanying Balance Sheets were as follows (in thousands): | |||||||||
Interest Rate Swaps | Employee Benefit Plans | Total | ||||||||
As of December 31, 2013 | $ | (719 | ) | $ | (478 | ) | $ | (1,197 | ) | |
Other comprehensive income (loss) | (299 | ) | (323 | ) | (622 | ) | ||||
As of December 31, 2014 | $ | (1,018 | ) | $ | (801 | ) | $ | (1,819 | ) | |
Interest Rate Swaps | Employee Benefit Plans | Total | ||||||||
As of December 31, 2012 | $ | (760 | ) | $ | (660 | ) | $ | (1,420 | ) | |
Other comprehensive income (loss) | 41 | 182 | 223 | |||||||
As of December 31, 2013 | $ | (719 | ) | $ | (478 | ) | $ | (1,197 | ) |
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||||||||||
Schedule of Allocation of Plan Assets | The percentages of total plan asset fair value by investment category of our Pension Plan assets at December 31 were as follows: | |||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||
Equity securities | 27 | % | 26 | % | ||||||||||||||||||||||||
Real estate | 5 | 4 | ||||||||||||||||||||||||||
Fixed income funds | 58 | 58 | ||||||||||||||||||||||||||
Cash and cash equivalents | 2 | 1 | ||||||||||||||||||||||||||
Hedge funds | 8 | 11 | ||||||||||||||||||||||||||
Total | 100 | % | 100 | % | ||||||||||||||||||||||||
Schedule of Contribution to Employee Plans | Contributions for the years ended December 31 were as follows (in thousands): | |||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||
Defined Benefit Plans | ||||||||||||||||||||||||||||
Defined Benefit Pension Plan | $ | 1,696 | $ | 2,299 | ||||||||||||||||||||||||
Non-pension Defined Benefit Postretirement Healthcare Plan | $ | 399 | $ | 578 | ||||||||||||||||||||||||
Supplemental Non-qualified Defined Benefit Plan | $ | 217 | $ | 217 | ||||||||||||||||||||||||
Defined Contribution Plans | ||||||||||||||||||||||||||||
Company Retirement Contribution | $ | 638 | $ | 421 | ||||||||||||||||||||||||
Matching Contributions | $ | 1,377 | $ | 1,301 | ||||||||||||||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following table sets forth a summary of changes in the fair value of the Defined Benefit Pension Plans’ Level 3 assets for the period ended December 31 (in thousands): | |||||||||||||||||||||||||||
2014 | ||||||||||||||||||||||||||||
Balance, beginning of period | $ | 7,683 | ||||||||||||||||||||||||||
Transfers | — | |||||||||||||||||||||||||||
Purchase | 98 | |||||||||||||||||||||||||||
Unrealized gain (loss) | 461 | |||||||||||||||||||||||||||
Realized gain (loss) | 76 | |||||||||||||||||||||||||||
Settlements | (1,461 | ) | ||||||||||||||||||||||||||
Balance, end of period | $ | 6,857 | ||||||||||||||||||||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques | The following table presents the quantitative information about Level 3 fair value measurements (dollars in thousands): | |||||||||||||||||||||||||||
Fair Value at | Valuation | Level 3 | Range (Weighted) | |||||||||||||||||||||||||
31-Dec-14 | Technique | Input | Average | |||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||
Common Collective Trust - Real Estate (a) | $ | 1,918 | Market Approach | Redemption Restriction | N/A | |||||||||||||||||||||||
Hedge Funds (b) | $ | 4,939 | Market Approach | Redemption Restriction | N/A | |||||||||||||||||||||||
_____________ | ||||||||||||||||||||||||||||
(a) | The underlying net asset value in the Common Collective Trust - Real Estate fund is determined by appraisal of the properties held in the Trust. As part of the Trustee's valuation process, properties are externally appraised generally on an annual basis. The appraisals are conducted by reputable independent appraisal firms and signed by appraisers that are members of the Appraisal Institute, with the professional designation of Member, Appraisal Institute. All external appraisals are performed in accordance with the Uniform Standards of Professional Appraisal Practices. We receive monthly statements from the Trustee along with the annual schedule of investments and rely on these reports for pricing the units of the fund. The fund does contain a participant withdrawal policy. | |||||||||||||||||||||||||||
(b) | The fair value the Hedge Funds is determined based on pricing provided or reviewed by third-party administrator to our investment managers. While the input amounts used by the pricing vendor in determining fair value are not provided, and therefore, unavailable for our review, the asset results are reviewed and monitored to ensure the fair values are reasonable and in line with market experience in similar asset classes. Additionally, the audited financial statements of the funds are reviewed annually as they are issued. | |||||||||||||||||||||||||||
Schedule of Changes in Projected Benefit Obligations | The following tables provide a reconciliation of the Employee Benefit Plan’s obligations and fair value of assets, components of the net periodic expense and elements of regulatory assets and liabilities and AOCI (in thousands): | |||||||||||||||||||||||||||
Benefit Obligations | ||||||||||||||||||||||||||||
Defined Benefit Pension Plan | Supplemental Non-qualified Defined Benefit Retirement Plans | Non-pension Defined Benefit Postretirement Healthcare Plan | ||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
Change in benefit obligation: | ||||||||||||||||||||||||||||
Projected benefit obligation at beginning of year | $ | 60,223 | $ | 69,820 | $ | 3,131 | $ | 3,427 | $ | 5,850 | $ | 6,766 | ||||||||||||||||
Service cost | 704 | 852 | — | — | 222 | 216 | ||||||||||||||||||||||
Interest cost | 2,991 | 2,969 | 146 | 133 | 241 | 239 | ||||||||||||||||||||||
Actuarial loss (gain) | 11,879 | (7,818 | ) | 540 | (212 | ) | 115 | (459 | ) | |||||||||||||||||||
Amendments (a) | — | — | — | — | — | (342 | ) | |||||||||||||||||||||
Benefits paid | (4,452 | ) | (4,850 | ) | (218 | ) | (217 | ) | (488 | ) | (1,045 | ) | ||||||||||||||||
Asset transfer (to) from affiliate | (167 | ) | (750 | ) | — | — | 24 | (75 | ) | |||||||||||||||||||
Medicare Part D adjustment | — | — | — | — | (15 | ) | 82 | |||||||||||||||||||||
Plan participants’ contributions | — | — | — | — | 89 | 468 | ||||||||||||||||||||||
Projected benefit obligation at end of year | $ | 71,178 | $ | 60,223 | $ | 3,599 | $ | 3,131 | $ | 6,038 | $ | 5,850 | ||||||||||||||||
_______________ | ||||||||||||||||||||||||||||
(a) | Reflects Board of Directors approval of increase to Company’s contribution to RMSA account. | |||||||||||||||||||||||||||
Schedule of Changes in Fair Value of Plan Assets | A reconciliation of the fair value of Plan assets (as of the December 31 measurement date) is as follows (in thousands): | |||||||||||||||||||||||||||
Defined Benefit Pension Plan | Supplemental Non-qualified Defined Benefit Retirement Plans | Non-pension Defined Benefit Postretirement Healthcare Plan | ||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
Beginning market value of plan assets | $ | 56,405 | $ | 53,465 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Investment income | 5,462 | 6,070 | — | — | — | — | ||||||||||||||||||||||
Benefits paid | (4,452 | ) | (4,850 | ) | — | — | — | — | ||||||||||||||||||||
Employer contributions | 1,696 | 2,299 | — | — | — | — | ||||||||||||||||||||||
Asset transfer to affiliate | (13 | ) | (579 | ) | — | — | — | — | ||||||||||||||||||||
Ending market value of plan assets | $ | 59,098 | $ | 56,405 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Schedule of Amounts Recognized in Balance Sheet | Amounts recognized in the Balance Sheets at December 31 consist of (in thousands): | |||||||||||||||||||||||||||
Defined Benefit Pension Plan | Supplemental Non-qualified Defined Benefit Retirement Plans | Non-pension Defined Benefit Postretirement Plan | ||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
Regulatory asset (liability) | $ | 22,717 | $ | 13,735 | $ | — | $ | — | $ | 2,306 | $ | 2,781 | ||||||||||||||||
Current liability | $ | — | $ | — | $ | (217 | ) | $ | (216 | ) | $ | (519 | ) | $ | (491 | ) | ||||||||||||
Non-current liability | $ | (12,080 | ) | $ | (3,818 | ) | $ | (3,382 | ) | $ | (2,915 | ) | $ | (5,519 | ) | $ | (5,372 | ) | ||||||||||
Schedule of Accumulated and Projected Benefit Obligations | Accumulated Benefit Obligation (in thousands) | |||||||||||||||||||||||||||
Defined Benefit Pension Plan | Supplemental Non-qualified Defined Benefit Retirement Plans | Non-pension Defined Benefit Postretirement Healthcare Plan | ||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
Accumulated benefit obligation | $ | 65,699 | $ | 55,283 | $ | 3,599 | $ | 3,131 | $ | 6,038 | $ | 5,850 | ||||||||||||||||
Schedule of Net Benefit Costs | Components of Net Periodic Expense (in thousands) | |||||||||||||||||||||||||||
Defined Benefit Pension Plan | Supplemental Non-qualified Defined Benefit Retirement Plans | Non-pension Defined Benefit Postretirement Healthcare Plan | ||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||
Service cost | $ | 704 | $ | 852 | $ | 765 | $ | — | $ | — | $ | — | $ | 222 | $ | 216 | $ | 214 | ||||||||||
Interest cost | 2,991 | 2,969 | 2,969 | 146 | 133 | 104 | 241 | 239 | 343 | |||||||||||||||||||
Expected return on assets | (3,702 | ) | (3,764 | ) | (3,139 | ) | — | — | — | — | — | — | ||||||||||||||||
Amortization of prior service cost (credits) | 43 | 43 | 57 | — | — | — | (335 | ) | (278 | ) | (278 | ) | ||||||||||||||||
Amortization of transition obligation | — | 2,609 | — | — | — | — | — | — | — | |||||||||||||||||||
Recognized net actuarial loss (gain) | 940 | — | 2,599 | 45 | 66 | 55 | — | 9 | 139 | |||||||||||||||||||
Net periodic expense | $ | 976 | $ | 2,709 | $ | 3,251 | $ | 191 | $ | 199 | $ | 159 | $ | 128 | $ | 186 | $ | 418 | ||||||||||
Schedule of Net Periodic Benefit Cost Not yet Recognized | Amounts included in AOCI, after-tax, that have not yet been recognized as components of net periodic benefit cost at December 31 were as follows (in thousands): | |||||||||||||||||||||||||||
Defined Benefit Pension Plan | Supplemental Non-qualified Defined Benefit Retirement Plans | Non-pension Defined Benefit Postretirement Healthcare Plan | ||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
Net loss | $ | — | $ | — | $ | (801 | ) | $ | (479 | ) | $ | — | $ | — | ||||||||||||||
Prior service cost | — | — | — | — | — | — | ||||||||||||||||||||||
Total accumulated other comprehensive income (loss) | $ | — | $ | — | $ | (801 | ) | $ | (479 | ) | $ | — | $ | — | ||||||||||||||
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year | The amounts in AOCI, regulatory assets or regulatory liabilities, after-tax, expected to be recognized as a component of net periodic benefit cost during calendar year 2015 are as follows (in thousands): | |||||||||||||||||||||||||||
Defined Benefits Pension Plan | Supplemental Non-qualified Defined Benefit Retirement Plans | Non-pension Defined Benefit Postretirement Healthcare Plan | ||||||||||||||||||||||||||
Net gain (loss) | $ | 1,428 | $ | 61 | $ | — | ||||||||||||||||||||||
Prior service cost | 27 | — | (218 | ) | ||||||||||||||||||||||||
Total net periodic benefit cost expected to be recognized during calendar year 2015 | $ | 1,455 | $ | 61 | $ | (218 | ) | |||||||||||||||||||||
Schedule of Assumptions Used | Assumptions | |||||||||||||||||||||||||||
Defined Benefit Pension Plan | Supplemental Non-qualified Defined Benefit Retirement Plans | Non-pension Defined Benefit Postretirement Healthcare Plan | ||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||
Weighted-average assumptions used to determine benefit obligations: | ||||||||||||||||||||||||||||
Discount rate | 4.25 | % | 5.1 | % | 4.35 | % | 3.98 | % | 4.68 | % | 4.25 | % | 3.7 | % | 4.45 | % | 3.65 | % | ||||||||||
Rate of increase in compensation levels | 3.86 | % | 3.86 | % | 3.91 | % | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||
Weighted-average assumptions used to determine net periodic benefit cost for plan year: | ||||||||||||||||||||||||||||
Discount rate | 5.1 | % | 4.35 | % | 4.65 | % | 4.68 | % | 3.88 | % | 4.7 | % | 4.45 | % | 3.65 | % | 4.35 | % | ||||||||||
Expected long-term rate of return on assets (a) | 6.75 | % | 7.25 | % | 7.25 | % | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||
Rate of increase in compensation levels | 3.86 | % | 3.91 | % | 3.67 | % | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||
_____________________________ | ||||||||||||||||||||||||||||
(a) | The expected rate of return on plan assets is 6.75% for the calculation of the 2015 net periodic pension cost. | |||||||||||||||||||||||||||
Schedule of Health Care Cost Trend Rates | The healthcare benefit obligation was determined at December 31 as follows: | |||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||
Healthcare trend rate pre-65 | ||||||||||||||||||||||||||||
Trend for next year | 7.5 | % | 7.5 | % | ||||||||||||||||||||||||
Ultimate trend rate | 4.5 | % | 4.5 | % | ||||||||||||||||||||||||
Year Ultimate Trend Reached | 2027 | 2027 | ||||||||||||||||||||||||||
Healthcare trend rate post-65 | ||||||||||||||||||||||||||||
Trend for next year | 6.25 | % | 6.25 | % | ||||||||||||||||||||||||
Ultimate trend rate | 4.5 | % | 4.5 | % | ||||||||||||||||||||||||
Year Ultimate Trend Reached | 2024 | 2026 | ||||||||||||||||||||||||||
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | The table below shows the estimated impacts of an increase or decrease to our healthcare trend rate for our Retiree Health Care Plan (in thousands): | |||||||||||||||||||||||||||
Change in Assumed Trend Rate | Service and Interest Costs | Accumulated Periodic Postretirement Benefit Obligation | ||||||||||||||||||||||||||
1% increase | $ | 8 | $ | 195 | ||||||||||||||||||||||||
1% decrease | $ | (8 | ) | $ | (178 | ) | ||||||||||||||||||||||
Schedule of Expected Benefit Payments | The following benefit payments, which reflect future service, are expected to be paid (in thousands): | |||||||||||||||||||||||||||
Defined Benefit Pension Plan | Supplemental Non-qualified Defined Benefit Retirement Plans | Non-pension Defined Benefit Postretirement Healthcare Plan | ||||||||||||||||||||||||||
2015 | $ | 3,303 | $ | 217 | $ | 519 | ||||||||||||||||||||||
2016 | $ | 3,330 | $ | 217 | $ | 509 | ||||||||||||||||||||||
2017 | $ | 3,455 | $ | 248 | $ | 502 | ||||||||||||||||||||||
2018 | $ | 3,575 | $ | 246 | $ | 569 | ||||||||||||||||||||||
2019 | $ | 3,749 | $ | 244 | $ | 610 | ||||||||||||||||||||||
2020-2024 | $ | 21,109 | $ | 1,547 | $ | 2,847 | ||||||||||||||||||||||
Defined Benefit Pension Plan [Member] | ||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||||||||||
Schedule of Allocation of Plan Assets | The following tables set forth, by level within the fair value hierarchy, the assets that were accounted for at fair value on a recurring basis as of December 31 (in thousands): | |||||||||||||||||||||||||||
Defined Benefit Pension Plan | 2014 | |||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total Fair Value | |||||||||||||||||||||||||
AXA Equitable General Fixed Income | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||
Common Collective Trust - Cash and Cash Equivalents | — | 899 | — | 899 | ||||||||||||||||||||||||
Common Collective Trust - Equity | — | 16,107 | — | 16,107 | ||||||||||||||||||||||||
Common Collective Trust - Fixed Income | — | 34,474 | — | 34,474 | ||||||||||||||||||||||||
Common Collective Trust - Real Estate | — | 761 | 1,918 | 2,679 | ||||||||||||||||||||||||
Hedge Funds | — | — | 4,939 | 4,939 | ||||||||||||||||||||||||
Total investments measured at fair value | $ | — | $ | 52,241 | $ | 6,857 | $ | 59,098 | ||||||||||||||||||||
Defined Benefit Pension Plan | 2013 | |||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total Fair Value | |||||||||||||||||||||||||
AXA Equitable General Fixed Income | $ | — | $ | 213 | $ | — | $ | 213 | ||||||||||||||||||||
Common Collective Trust - Cash and Cash Equivalents | — | 252 | — | 252 | ||||||||||||||||||||||||
Common Collective Trust - Equity | — | 14,833 | — | 14,833 | ||||||||||||||||||||||||
Common Collective Trust - Fixed Income | — | 32,742 | — | 32,742 | ||||||||||||||||||||||||
Common Collective Trust - Real Estate | — | 682 | 1,718 | 2,400 | ||||||||||||||||||||||||
Hedge Funds | — | — | 5,965 | 5,965 | ||||||||||||||||||||||||
Total investments measured at fair value | $ | — | $ | 48,722 | $ | 7,683 | $ | 56,405 | ||||||||||||||||||||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Related Party Transactions [Abstract] | ||||||||||
Schedule of Related Party Accounts Receivable and Payable | We have accounts receivable and accounts payable balances related to transactions with other BHC subsidiaries. These balances as of December 31 were as follows (in thousands): | |||||||||
2014 | 2013 | |||||||||
Receivable - affiliates | $ | 5,350 | $ | 4,934 | ||||||
Accounts payable - affiliates | $ | 19,242 | $ | 21,082 | ||||||
Schedule of Related Party Notes and Associated Interest Income Expense | We had the following balances with the Utility Money Pool as of December 31 (in thousands): | |||||||||
2014 | 2013 | |||||||||
Notes receivable (payable), net | $ | 68,626 | $ | 17,292 | ||||||
Schedule of Related Party Interest Income Expense | Net interest income (expense) relating to the Utility Money Pool for the years ended December 31, was as follows (in thousands): | |||||||||
2014 | 2013 | 2012 | ||||||||
Net interest income (expense) | $ | 304 | $ | 505 | $ | 617 | ||||
Schedule of Revenues and Purchases from Related Parties | We had the following related party transactions for the years ended December 31 included in the corresponding captions in the accompanying Statements of Income: | |||||||||
2014 | 2013 | 2012 | ||||||||
(in thousands) | ||||||||||
Revenues: | ||||||||||
Energy sold to Cheyenne Light | $ | 1,894 | $ | 1,338 | $ | 2,372 | ||||
Rent from electric properties | $ | 4,102 | $ | 3,627 | $ | 2,661 | ||||
Purchases: | ||||||||||
Purchase of coal from WRDC | $ | 16,861 | $ | 18,542 | $ | 20,690 | ||||
Purchase of excess energy from Cheyenne Light | $ | 3,033 | $ | 3,640 | $ | 3,139 | ||||
Purchase of renewable wind energy from Cheyenne Light - Happy Jack | $ | 1,959 | $ | 1,886 | $ | 1,988 | ||||
Purchase of renewable wind energy from Cheyenne Light - Silver Sage | $ | 3,200 | $ | 3,207 | $ | 3,269 | ||||
Corporate support services from Parent, Black Hills Service Company and Black Hills Utility Holdings | $ | 32,332 | $ | 30,738 | $ | 24,163 | ||||
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Supplemental Cash Flow Information [Abstract] | ||||||||||
Schedule of Cash Flow, Supplemental Disclosures | ||||||||||
Years ended December 31, | 2014 | 2013 | 2012 | |||||||
(in thousands) | ||||||||||
Non-cash investing and financing activities - | ||||||||||
Property, plant and equipment acquired with accrued liabilities | $ | 4,234 | $ | 13,590 | $ | 3,969 | ||||
Non-cash decrease to money pool note receivable, net | $ | — | $ | (8,000 | ) | $ | (43,984 | ) | ||
Non-cash dividend to Parent company | $ | — | $ | 8,000 | $ | 43,984 | ||||
Supplemental disclosure of cash flow information: | ||||||||||
Cash (paid) refunded during the period for - | ||||||||||
Interest (net of amounts capitalized) | $ | (19,573 | ) | $ | (19,174 | ) | $ | (17,099 | ) | |
Income taxes | $ | — | $ | 219 | $ | 7,176 | ||||
Commitment_and_Contingencies_T
Commitment and Contingencies (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||
Long-term Purchase Commitment | Costs incurred under these agreements were as follows for the years ended December 31 (in thousands): | ||||||||||
Contract | Contract Type | 2014 | 2013 | 2012 | |||||||
PacifiCorp | Electric capacity and energy | $ | 13,943 | $ | 13,026 | $ | 13,224 | ||||
PacifiCorp | Transmission access | $ | 1,227 | $ | 1,384 | $ | 1,215 | ||||
Thunder Creek | Gas transport capacity | $ | 633 | $ | 633 | $ | 633 | ||||
Unrecorded Unconditional Purchase Obligations Disclosure | The following is a schedule of future minimum payments required under the power purchase, transmission services, facility and vehicle leases, and gas supply agreements (in thousands): | ||||||||||
2015 | $ | 12,443 | |||||||||
2016 | $ | 12,443 | |||||||||
2017 | $ | 12,443 | |||||||||
2018 | $ | 6,135 | |||||||||
2019 | $ | 6,037 | |||||||||
Thereafter | $ | 21,998 | |||||||||
Quarterly_Historical_Data_Unau1
Quarterly Historical Data (Unaudited) (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Selected Quarterly Financial Information [Abstract] | |||||||||||||
Schedule of Quarterly Financial Information | The following table sets forth selected unaudited historical operating results data for each quarter (in thousands): | ||||||||||||
First | Second | Third | Fourth | ||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||
2014 | |||||||||||||
Operating revenues | $ | 71,267 | $ | 60,741 | $ | 67,729 | $ | 68,751 | |||||
Operating income | $ | 17,546 | $ | 13,782 | $ | 19,007 | $ | 18,779 | |||||
Net income | $ | 8,643 | $ | 6,230 | $ | 9,916 | $ | 8,773 | |||||
2013 | |||||||||||||
Operating revenues | $ | 59,817 | $ | 60,832 | $ | 67,268 | $ | 66,110 | |||||
Operating income | $ | 12,503 | $ | 14,293 | $ | 18,704 | $ | 16,844 | |||||
Net income | $ | 5,582 | $ | 6,652 | $ | 9,298 | $ | 8,641 | |||||
Business_Description_and_Summa3
Business Description and Summary of Significant Accounting Policies: Regulatory Assets and Liabilities (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Schedule Of Regulatory Assets And Liabilities [Line Items] | ||||
Regulatory Assets | $78,684 | $45,264 | ||
Regulatory Liabilities | 54,989 | 43,518 | ||
Cost of removal for utility plant [Member] | ||||
Schedule Of Regulatory Assets And Liabilities [Line Items] | ||||
Regulatory Liabilities, Maximum Recovery Period | P44Y | |||
Regulatory Liabilities | 35,510 | [1] | 30,467 | [1] |
Employee benefit plans [Member] | ||||
Schedule Of Regulatory Assets And Liabilities [Line Items] | ||||
Regulatory Liabilities, Maximum Recovery Period | P12Y | |||
Regulatory Liabilities | 14,538 | [2],[3] | 10,177 | [2],[3] |
Other regulatory liabilities [Member] | ||||
Schedule Of Regulatory Assets And Liabilities [Line Items] | ||||
Regulatory Liabilities, Maximum Recovery Period | P13Y | |||
Regulatory Liabilities | 4,941 | [2] | 2,874 | [2] |
Unamortized loss on reacquired debt [Member] | ||||
Schedule Of Regulatory Assets And Liabilities [Line Items] | ||||
Regulatory Assets, Maximum Recovery Period | P10Y | |||
Regulatory Assets | 2,377 | [1] | 2,257 | [1] |
Allowance for Funds Used During Construction [Member] | ||||
Schedule Of Regulatory Assets And Liabilities [Line Items] | ||||
Regulatory Assets, Maximum Recovery Period | P45Y | |||
Regulatory Assets | 8,365 | [4] | 8,327 | [4] |
Employee benefit plans [Member] | ||||
Schedule Of Regulatory Assets And Liabilities [Line Items] | ||||
Regulatory Assets, Maximum Recovery Period | P12Y | |||
Regulatory Assets | 24,418 | [2],[3] | 15,233 | [2],[3] |
Deferred energy costs [Member] | ||||
Schedule Of Regulatory Assets And Liabilities [Line Items] | ||||
Regulatory Assets, Maximum Recovery Period | P1Y | |||
Regulatory Assets | 14,696 | [1] | 7,711 | [1] |
Flow through accounting [Member] | ||||
Schedule Of Regulatory Assets And Liabilities [Line Items] | ||||
Regulatory Assets, Maximum Recovery Period | P35Y | |||
Regulatory Assets | 11,171 | [1] | 9,723 | [1] |
Decommissioning costs [Member] | ||||
Schedule Of Regulatory Assets And Liabilities [Line Items] | ||||
Regulatory Assets, Maximum Recovery Period | P10Y | |||
Regulatory Assets | 11,786 | 0 | ||
Other regulatory assets [Member] | ||||
Schedule Of Regulatory Assets And Liabilities [Line Items] | ||||
Regulatory Assets, Maximum Recovery Period | P2Y | |||
Regulatory Assets | $5,871 | [1] | $2,013 | [1] |
[1] | Recovery of costs but we are not allowed a rate of return. | |||
[2] | In addition to recovery or repayment of costs, we are allowed a return on a portion of this amount or a reduction in rate base, respectively. | |||
[3] | Increases are due to a reduction in the discount rate and a change in the mortality tables used in employee benefit plan estimates. | |||
[4] | In addition to recovery of costs, we are allowed a rate of return. |
Business_Description_and_Summa4
Business Description and Summary of Significant Accounting Policies: Accounts Receivable (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for doubtful accounts | ($261) | ($220) |
Net accounts receivable | 34,684 | 25,799 |
Billed Revenues [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, trade | 24,946 | 16,300 |
Unbilled Revenues [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, trade | $9,999 | $9,719 |
Business_Description_and_Summa5
Business Description and Summary of Significant Accounting Policies: Property, Plant and Equipment (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Composite Depreciation Rate for Plants in Service | 2.30% | 2.10% | 2.20% |
Property_Plant_Equipment_Detai
Property, Plant & Equipment (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Public Utilities, Property, Plant and Equipment, Net [Abstract] | ||||
Production | 567,936 | 512,444 | ||
Transmission | 115,949 | 115,149 | ||
Distribution | 336,652 | 315,971 | ||
Plant acquisition adjustment | 4,870 | [1] | 4,870 | [1] |
General | 79,738 | 70,228 | ||
Total plant-in-service | 1,105,145 | 1,018,662 | ||
Construction work in progress | 9,916 | 77,222 | ||
Total electric plant | 1,115,061 | 1,095,884 | ||
Less accumulated depreciation and amortization | -309,767 | -334,174 | ||
Electric plant net of accumulated depreciation and amortization | 805,294 | 761,710 | ||
Acquisition Adjustment, Remaining Amortization Period | 16 years | |||
Electric Production [Member] | Weighted average useful life [Member] | ||||
Public Utilities, Property, Plant and Equipment, Net [Abstract] | ||||
Useful Life (in years) | 48 years | 51 years | ||
Electric Production [Member] | Minimum [Member] | ||||
Public Utilities, Property, Plant and Equipment, Net [Abstract] | ||||
Useful Life (in years) | 40 years | |||
Electric Production [Member] | Maximum [Member] | ||||
Public Utilities, Property, Plant and Equipment, Net [Abstract] | ||||
Useful Life (in years) | 65 years | |||
Electric Transmission [Member] | Weighted average useful life [Member] | ||||
Public Utilities, Property, Plant and Equipment, Net [Abstract] | ||||
Useful Life (in years) | 46 years | 46 years | ||
Electric Transmission [Member] | Minimum [Member] | ||||
Public Utilities, Property, Plant and Equipment, Net [Abstract] | ||||
Useful Life (in years) | 40 years | |||
Electric Transmission [Member] | Maximum [Member] | ||||
Public Utilities, Property, Plant and Equipment, Net [Abstract] | ||||
Useful Life (in years) | 60 years | |||
Electric Distribution [Member] | Weighted average useful life [Member] | ||||
Public Utilities, Property, Plant and Equipment, Net [Abstract] | ||||
Useful Life (in years) | 39 years | 39 years | ||
Electric Distribution [Member] | Minimum [Member] | ||||
Public Utilities, Property, Plant and Equipment, Net [Abstract] | ||||
Useful Life (in years) | 16 years | |||
Electric Distribution [Member] | Maximum [Member] | ||||
Public Utilities, Property, Plant and Equipment, Net [Abstract] | ||||
Useful Life (in years) | 45 years | |||
Plant Acquisition Adjustment [Member] | Weighted average useful life [Member] | ||||
Public Utilities, Property, Plant and Equipment, Net [Abstract] | ||||
Useful Life (in years) | 32 years | [1] | 32 years | |
Plant Acquisition Adjustment [Member] | Minimum [Member] | ||||
Public Utilities, Property, Plant and Equipment, Net [Abstract] | ||||
Useful Life (in years) | 32 years | |||
Plant Acquisition Adjustment [Member] | Maximum [Member] | ||||
Public Utilities, Property, Plant and Equipment, Net [Abstract] | ||||
Useful Life (in years) | 32 years | |||
General [Member] | Weighted average useful life [Member] | ||||
Public Utilities, Property, Plant and Equipment, Net [Abstract] | ||||
Useful Life (in years) | 22 years | 22 years | ||
General [Member] | Minimum [Member] | ||||
Public Utilities, Property, Plant and Equipment, Net [Abstract] | ||||
Useful Life (in years) | 5 years | |||
General [Member] | Maximum [Member] | ||||
Public Utilities, Property, Plant and Equipment, Net [Abstract] | ||||
Useful Life (in years) | 33 years | |||
[1] | The plant acquisition adjustment is included in rate base and is being recovered with 16 years remaining. |
Jointly_Owned_Facilities_Detai
Jointly Owned Facilities (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
MW | |
Wyodak Plant [Member] | |
Jointly Owned Utility Plant Interests [Line Items] | |
Proportionate Ownership Percentage | 20.00% |
Plant in Service | $110,123 |
Construction Work in Progress | 1,201 |
Accumulated Depreciation | 53,816 |
Transmission Tie [Member] | |
Jointly Owned Utility Plant Interests [Line Items] | |
Proportionate Ownership Percentage | 35.00% |
Plant in Service | 19,648 |
Construction Work in Progress | 0 |
Accumulated Depreciation | 4,976 |
Wygen I I I Generating Facility [Member] | |
Jointly Owned Utility Plant Interests [Line Items] | |
Proportionate Ownership Percentage | 52.00% |
Plant in Service | 136,220 |
Construction Work in Progress | 29 |
Accumulated Depreciation | 13,811 |
Cheyenne Prairie [Member] | |
Jointly Owned Utility Plant Interests [Line Items] | |
Electric Generation Capacity, Megawatts | 55 |
Plant in Service | 89,617 |
Construction Work in Progress | 0 |
Accumulated Depreciation | $657 |
Cheyenne Prairie [Member] | Cheyenne Light [Member] | |
Jointly Owned Utility Plant Interests [Line Items] | |
Electric Generation Capacity, Megawatts | 40 |
Long_Term_Debt_Details
Long Term Debt (Details) (USD $) | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Debt Instrument [Line Items] | |||||
Long-term Debt | $342,752,000 | $269,948,000 | |||
Deferred Finance Costs [Abstract] | |||||
Deferred Finance Costs, Noncurrent, Net | 3,300,000 | 2,800,000 | |||
Amortization of Financing Costs | 100,000 | 100,000 | 200,000 | ||
First Mortgage Bonds Due 2032 [Member] | |||||
Debt Instrument [Line Items] | |||||
Maturity Date | 15-Aug-32 | ||||
Interest Rate, Stated Percentage | 7.23% | ||||
Long-term Debt, Gross | 75,000,000 | 75,000,000 | |||
First Mortgage Bonds Due 2039 [Member] | |||||
Debt Instrument [Line Items] | |||||
Maturity Date | 1-Nov-39 | ||||
Interest Rate, Stated Percentage | 6.13% | ||||
Long-term Debt, Gross | 180,000,000 | 180,000,000 | |||
Unamortized Discount | -103,000 | -107,000 | |||
First Mortgage Bonds Due 2044 [Member] | |||||
Debt Instrument [Line Items] | |||||
Maturity Date | 20-Oct-44 | ||||
Interest Rate, Stated Percentage | 4.43% | ||||
Long-term Debt, Gross | 85,000,000 | 0 | |||
Polution Control Revenue Bonds Due 2024 [Member] | |||||
Debt Instrument [Line Items] | |||||
Maturity Date | 1-Oct-24 | ||||
Interest Rate, Stated Percentage | 5.35% | ||||
Long-term Debt, Gross | 0 | 12,200,000 | |||
Extinguishment of Debt, Amount | 12,000,000 | ||||
Bonds Due 2024 [Member] | |||||
Debt Instrument [Line Items] | |||||
Maturity Date | 1-Jun-24 | ||||
Variable Interest, Percentage Rate | 0.75% | [1] | |||
Long-term Debt, Gross | $2,855,000 | [1] | $2,855,000 | [1] | |
[1] | Variable interest rate at December 31, 2014. |
LongTerm_Debt_Schedule_of_Matu
Long-Term Debt: Schedule of Maturities of Long-term Debt (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Long-term Debt, Unclassified [Abstract] | |
2015 | $0 |
2016 | 0 |
2017 | 0 |
2018 | 0 |
2019 | 0 |
After 2019 | $342,855 |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
In Thousands, unless otherwise specified | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Cash and cash equivalents - carrying value | $6,620 | $2,259 | $3,805 | $2,812 | ||
Long-term debt, including current maturities - carrying value | 342,752 | 269,948 | ||||
Carrying Value | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Cash and cash equivalents - carrying value | 6,620 | [1] | 2,259 | [1] | ||
Long-term debt, including current maturities - carrying value | 342,752 | [2] | 269,948 | [2] | ||
Fair Value | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Cash and cash equivalents - fair value | 6,620 | [1] | 2,259 | [1] | ||
Long-term debt, including current maturities - fair value | $430,497 | [2] | $317,531 | [2] | ||
[1] | Fair value approximates carrying value due to either short-term length of maturity or variable interest rates that approximate prevailing market rates and therefore is classified in Level 1 in the fair value hierarchy. | |||||
[2] | Long-term debt is valued using the market approach based on observable inputs of quoted market prices and yields available for debt instruments either directly or indirectly for similar maturities and debt ratings in active markets and therefore is classified in Level 2 in the fair value hierarchy. The carrying amount of our variable rate debt approximates fair value due to the variable interest rates with short reset periods. For additional information on our long-term debt, see Note 4 to the Financial Statements. |
Income_Taxes_Current_and_Defer
Income Taxes: Current and Deferred Income Tax Expense (Benefit) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Current | ($6) | ($163) | ($10,319) |
Deferred | 16,518 | 13,582 | 24,628 |
Total income tax expense | $16,512 | $13,419 | $14,309 |
Income_Taxes_Deferred_Income_T
Income Taxes: Deferred Income Tax Assets and Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Components of Deferred Tax Assets [Abstract] | ||
Employee benefits | $4,995 | $4,567 |
Net operating loss | 14,794 | 4,197 |
Regulatory liabilities | 10,824 | 6,398 |
Other | 2,864 | 2,193 |
Deferred Tax Assets, Gross | 33,477 | 17,355 |
Components of Deferred Tax Liabilities [Abstract] | ||
Accelerated depreciation and other plant related differences | -184,478 | -161,990 |
Allowance for Funds Used During Construction | -8,365 | -8,190 |
Regulatory assets | -3,910 | -3,540 |
Employee benefits | -3,723 | -3,467 |
Deferred costs | -11,324 | -4,240 |
Other | -1,058 | -1,067 |
Total deferred tax liabilities | -212,858 | -182,494 |
Net deferred tax assets (liabilities) | ($179,381) | ($165,139) |
Income_Taxes_Effective_Tax_Rat
Income Taxes: Effective Tax Rate Differences from Statutory Tax Rates (Details) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Income Tax Disclosure [Abstract] | ||||||
Federal statutory rate | 35.00% | 35.00% | 35.00% | |||
Amortization of excess deferred and investment tax credits | -0.30% | -0.30% | -0.30% | |||
Equity AFUDC | -0.10% | 0.00% | -0.10% | |||
Flow through adjustments | -1.90% | [1] | -2.50% | [1] | -3.50% | [1] |
Prior year deferred adjustment | 0.00% | 0.00% | 3.60% | [2] | ||
Tax credits | -0.20% | -0.80% | 0.00% | |||
Other | 0.50% | -0.60% | -0.10% | |||
Effective Income Tax Rate | 33.00% | 30.80% | 34.60% | |||
[1] | The flow-through adjustments relate primarily to an accounting method change for tax purposes that allows us to take a current tax deduction for repair costs that continue to be capitalized for book purposes. We recorded a deferred income tax liability in recognition of the temporary difference created between book and tax treatment and we flowed the tax benefit through to our customers in the form of lower rates as a result of a rate case settlement that occurred during 2010. A regulatory asset was established to reflect the recovery of future increases in taxes payable from customers as the temporary differences reverse. As a result of this regulatory treatment, we continue to record a tax benefit consistent with the flow through method. | |||||
[2] | The adjustment was a non-recurring unfavorable true-up attributable to property related deferred income taxes. The removal of the impact of such an adjustment is more appropriately reflective of the effective rate on a recurring basis. |
Income_Taxes_Reconciliation_of
Income Taxes: Reconciliation of unrecognized tax benefits (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Beginning of Period | $2,443,000 | $2,078,000 |
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions | 434,000 | 0 |
Reductions for prior year tax positions | -1,254,000 | -155,000 |
Additions for current year tax positions | 0 | 520,000 |
End of Period | 1,623,000 | 2,443,000 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $500,000 |
Income_Taxes_Net_Operating_Los
Income Taxes: Net Operating Loss Carryforwards (Details) (Internal Revenue Service (IRS) [Member], USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Internal Revenue Service (IRS) [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | $42 |
Operating Loss Carryforwards, Expiration Date | 31-Dec-31 |
Comprehensive_Income_Other_Com
Comprehensive Income: Other Comprehensive Income (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||||||||
Interest Costs Incurred | $20,569,000 | $19,725,000 | $17,602,000 | ||||||||
Income Tax Expense (Benefit) | -16,512,000 | -13,419,000 | -14,309,000 | ||||||||
Net income | 8,773,000 | 9,916,000 | 6,230,000 | 8,643,000 | 8,641,000 | 9,298,000 | 6,652,000 | 5,582,000 | 33,562,000 | 30,173,000 | 27,086,000 |
First Mortgage Bonds Due 2032 [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||||||||
Derivative, Notional Amount | 50,000,000 | 50,000,000 | |||||||||
Derivative, Maturity Date | 8-Aug-02 | ||||||||||
Realized Loss Included Accumulated Other Comprehensive Income (Loss) | 1,800,000 | 1,800,000 | |||||||||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Interest Rate Contract [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||||||||
Interest Costs Incurred | 64,000 | 64,000 | |||||||||
Income Tax Expense (Benefit) | -364,000 | -23,000 | |||||||||
Net income | -300,000 | 41,000 | |||||||||
Accumulated Defined Benefit Plans Adjustment, Net Unamortized Gain (Loss) [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||||||||
Utilities Operating Expense, Maintenance, Operations, and Other Costs and Expenses | 45,000 | 66,000 | |||||||||
Accumulated Defined Benefit Plans Adjustment [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||||||||
Income Tax Expense (Benefit) | -16,000 | -23,000 | |||||||||
Net income | $29,000 | $43,000 |
Comprehensive_Income_Accumulat
Comprehensive Income: Accumulated Other Comprehensive Income (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Period Start | ($1,197) | ($1,420) | |
Other comprehensive income (loss) | -622 | 223 | -130 |
Accumulated Other Comprehensive Income (Loss), Net of Tax, Period End | -1,819 | -1,197 | -1,420 |
Interest Rate Swaps, Cash Flow Hedges, AOCI [Member] | Interest Rate Swaps [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Period Start | -719 | -760 | |
Other comprehensive income (loss) | -299 | 41 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax, Period End | -1,018 | -719 | |
Employee Benefit Plans, AOCI [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Period Start | -478 | -660 | |
Other comprehensive income (loss) | -323 | 182 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax, Period End | ($801) | ($478) |
Employee_Benefit_Plans_Narrati
Employee Benefit Plans: Narrative (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Measurement Date | 31-Dec | |||||
Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets | 6.75% | 7.25% | ||||
Defined Benefit Pension Plan [Member] | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Unfunded Status of Plan | ($12,000) | |||||
Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets | 6.75% | [1] | 7.25% | [1] | 7.25% | [1] |
Non-pension Defined Benefit Postretirement Healthcare Plan [Member] | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Unfunded Status of Plan | -6,000 | |||||
Supplemental Non-qualified Defined Benefit Retirement Plans [Member] | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Unfunded Status of Plan | ($3,599) | |||||
[1] | The expected rate of return on plan assets is 6.75% for the calculation of the 2015 net periodic pension cost. |
Employee_Benefit_Plans_Target_
Employee Benefit Plans: Target Plan Assets Allocation (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Target Plan Asset Allocations | 100.00% | 100.00% |
Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Plan Asset Allocations | 27.00% | 26.00% |
Real Estate [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Plan Asset Allocations | 5.00% | 4.00% |
Fixed Income Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Plan Asset Allocations | 58.00% | 58.00% |
Cash and Cash Equivalents [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Plan Asset Allocations | 2.00% | 1.00% |
Hedge Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Plan Asset Allocations | 8.00% | 11.00% |
Employee_Benefit_Plans_Plan_Co
Employee Benefit Plans: Plan Contribution (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | $1,700,000 | |
Defined Contribution Plan, Company Retirement [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined Contribution Plans, Contributions by Employer | 638,000 | 421,000 |
Defined Contribution Plan, 401K [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined Contribution Plans, Contributions by Employer | 1,377,000 | 1,301,000 |
Defined Benefit Pension Plan [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension and Other Postretirement Benefit Contributions | 1,696,000 | 2,299,000 |
Non-pension Defined Benefit Postretirement Healthcare Plan [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension and Other Postretirement Benefit Contributions | 399,000 | 578,000 |
Supplemental Non-qualified Defined Benefit Retirement Plans [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension and Other Postretirement Benefit Contributions | $217,000 | $217,000 |
Employee_Benefit_Plans_Fair_Va
Employee Benefit Plans: Fair Value Measurements (Details) (Defined Benefit Pension Plan [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | $59,098 | $56,405 | $53,465 | ||
AXA Equitable General Fixed Income [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 213 | |||
Common Collective Trust - Cash and Cash Equivalents [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 899 | 252 | |||
Common Collective Trust - Equity [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 16,107 | 14,833 | |||
Common Collective Trust - Fixed Income [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 34,474 | 32,742 | |||
Common Collective Trust - Real Estate [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 2,679 | 2,400 | |||
Hedge Funds [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 4,939 | 5,965 | |||
Fair Value, Level 1 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Fair Value, Level 1 [Member] | AXA Equitable General Fixed Income [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Fair Value, Level 1 [Member] | Common Collective Trust - Cash and Cash Equivalents [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Fair Value, Level 1 [Member] | Common Collective Trust - Equity [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Fair Value, Level 1 [Member] | Common Collective Trust - Fixed Income [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Fair Value, Level 1 [Member] | Common Collective Trust - Real Estate [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Fair Value, Level 1 [Member] | Hedge Funds [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Fair Value, Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 52,241 | 48,722 | |||
Fair Value, Level 2 [Member] | AXA Equitable General Fixed Income [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 213 | |||
Fair Value, Level 2 [Member] | Common Collective Trust - Cash and Cash Equivalents [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 899 | 252 | |||
Fair Value, Level 2 [Member] | Common Collective Trust - Equity [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 16,107 | 14,833 | |||
Fair Value, Level 2 [Member] | Common Collective Trust - Fixed Income [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 34,474 | 32,742 | |||
Fair Value, Level 2 [Member] | Common Collective Trust - Real Estate [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 761 | 682 | |||
Fair Value, Level 2 [Member] | Hedge Funds [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Fair Value, Level 3 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 6,857 | 7,683 | |||
Fair Value, Level 3 [Member] | AXA Equitable General Fixed Income [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Fair Value, Level 3 [Member] | Common Collective Trust - Cash and Cash Equivalents [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Fair Value, Level 3 [Member] | Common Collective Trust - Equity [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Fair Value, Level 3 [Member] | Common Collective Trust - Fixed Income [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Fair Value, Level 3 [Member] | Common Collective Trust - Real Estate [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 1,918 | [1] | 1,718 | [1] | |
Fair Value, Level 3 [Member] | Hedge Funds [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | $4,939 | [2] | $5,965 | [2] | |
[1] | The underlying net asset value in the Common Collective Trust - Real Estate fund is determined by appraisal of the properties held in the Trust. As part of the Trustee's valuation process, properties are externally appraised generally on an annual basis. The appraisals are conducted by reputable independent appraisal firms and signed by appraisers that are members of the Appraisal Institute, with the professional designation of Member, Appraisal Institute. All external appraisals are performed in accordance with the Uniform Standards of Professional Appraisal Practices. We receive monthly statements from the Trustee along with the annual schedule of investments and rely on these reports for pricing the units of the fund. The fund does contain a participant withdrawal policy. | ||||
[2] | The fair value the Hedge Funds is determined based on pricing provided or reviewed by third-party administrator to our investment managers. While the input amounts used by the pricing vendor in determining fair value are not provided, and therefore, unavailable for our review, the asset results are reviewed and monitored to ensure the fair values are reasonable and in line with market experience in similar asset classes. Additionally, the audited financial statements of the funds are reviewed annually as they are issued. |
Employee_Benefit_Plans_Level_3
Employee Benefit Plans: Level 3 Roll Forward (Details) (Defined Benefit Pension Plan [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Defined Benefit Plan, Fair Value of Plan Assets | $59,098 | $56,405 | $53,465 |
Fair Value, Level 3 [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance, beginning of period | 7,683 | ||
Transfers | 0 | ||
Purchase | 98 | ||
Unrealized gain (loss) | 461 | ||
Realized gain (loss) | 76 | ||
Settlements | -1,461 | ||
Balance, end of period | 6,857 | ||
Defined Benefit Plan, Fair Value of Plan Assets | $6,857 | $7,683 |
Employee_Benefit_Plans_Changes
Employee Benefit Plans: Changes in Benefit Obligations (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Defined Benefit Pension Plan [Member] | ||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||
Projected benefit obligation at beginning of year | $60,223 | $69,820 | ||
Service cost | 704 | 852 | 765 | |
Interest cost | 2,991 | 2,969 | 2,969 | |
Actuarial loss (gain) | 11,879 | -7,818 | ||
Amendments | 0 | 0 | ||
Benefits paid | -4,452 | -4,850 | ||
Asset transfer (to) from affiliate | -167 | -750 | ||
Medicare Part D adjustment | 0 | 0 | ||
Plan participantsb contributions | 0 | 0 | ||
Projected benefit obligation at end of year | 71,178 | 60,223 | 69,820 | |
Supplemental Non-qualified Defined Benefit Retirement Plans [Member] | ||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||
Projected benefit obligation at beginning of year | 3,131 | 3,427 | ||
Service cost | 0 | 0 | 0 | |
Interest cost | 146 | 133 | 104 | |
Actuarial loss (gain) | 540 | -212 | ||
Amendments | 0 | 0 | ||
Benefits paid | 0 | 0 | ||
Benefits Paid from Company Assets | -218 | -217 | ||
Asset transfer (to) from affiliate | 0 | 0 | ||
Medicare Part D adjustment | 0 | 0 | ||
Plan participantsb contributions | 0 | 0 | ||
Projected benefit obligation at end of year | 3,599 | 3,131 | 3,427 | |
Non-pension Defined Benefit Postretirement Healthcare Plan [Member] | ||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||
Projected benefit obligation at beginning of year | 5,850 | 6,766 | ||
Service cost | 222 | 216 | 214 | |
Interest cost | 241 | 239 | 343 | |
Actuarial loss (gain) | 115 | -459 | ||
Amendments | 0 | -342 | [1] | |
Benefits paid | 0 | 0 | ||
Benefits Paid From Plan and Company Assets | -488 | -1,045 | ||
Asset transfer (to) from affiliate | 24 | -75 | ||
Medicare Part D adjustment | -15 | 82 | ||
Plan participantsb contributions | 89 | 468 | ||
Projected benefit obligation at end of year | $6,038 | $5,850 | $6,766 | |
[1] | Reflects Board of Directors approval of increase to Companybs contribution to RMSA account. |
Employee_Benefit_Plans_Changes1
Employee Benefit Plans: Changes in Plan Assets (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Pension Plan [Member] | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning market value of plan assets | $56,405 | $53,465 |
Investment income | 5,462 | 6,070 |
Benefits paid | -4,452 | -4,850 |
Pension and Other Postretirement Benefit Contributions | 1,696 | 2,299 |
Asset transfer to affiliate | -13 | -579 |
Ending market value of plan assets | 59,098 | 56,405 |
Supplemental Non-qualified Defined Benefit Retirement Plans [Member] | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning market value of plan assets | 0 | 0 |
Investment income | 0 | 0 |
Benefits paid | 0 | 0 |
Employer contributions | 0 | 0 |
Pension and Other Postretirement Benefit Contributions | 217 | 217 |
Asset transfer to affiliate | 0 | 0 |
Ending market value of plan assets | 0 | 0 |
Non-pension Defined Benefit Postretirement Healthcare Plan [Member] | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning market value of plan assets | 0 | 0 |
Investment income | 0 | 0 |
Benefits paid | 0 | 0 |
Employer contributions | 0 | 0 |
Pension and Other Postretirement Benefit Contributions | 399 | 578 |
Asset transfer to affiliate | 0 | 0 |
Ending market value of plan assets | $0 | $0 |
Employee_Benefit_Plans_Amounts
Employee Benefit Plans: Amounts Recognized in the Balance Sheet (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Regulatory asset (liability) | $78,684 | $45,264 |
Non-current liability | -20,981 | -12,105 |
Defined Benefit Pension Plan [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Regulatory asset (liability) | 22,717 | 13,735 |
Current liability | 0 | 0 |
Non-current liability | -12,080 | -3,818 |
Supplemental Non-qualified Defined Benefit Retirement Plans [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Regulatory asset (liability) | 0 | 0 |
Current liability | -217 | -216 |
Non-current liability | -3,382 | -2,915 |
Non-pension Defined Benefit Postretirement Healthcare Plan [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Regulatory asset (liability) | 2,306 | 2,781 |
Current liability | -519 | -491 |
Non-current liability | ($5,519) | ($5,372) |
Employee_Benefit_Plans_Accumul
Employee Benefit Plans: Accumulated Benefit Obligation (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Defined Benefit Pension Plan [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Accumulated benefit obligation | $65,699 | $55,283 |
Supplemental Non-qualified Defined Benefit Retirement Plans [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Accumulated benefit obligation | 3,599 | 3,131 |
Non-pension Defined Benefit Postretirement Healthcare Plan [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Accumulated benefit obligation | $6,038 | $5,850 |
Employee_Benefit_Plans_Compone
Employee Benefit Plans: Components of Net Periodic Expense (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $704 | $852 | $765 |
Interest cost | 2,991 | 2,969 | 2,969 |
Expected return on assets | -3,702 | -3,764 | -3,139 |
Amortization of prior service cost (credits) | 43 | 43 | 57 |
Amortization of transition obligation | 0 | 2,609 | 0 |
Recognized net actuarial loss (gain) | 940 | 0 | 2,599 |
Net periodic expense | 976 | 2,709 | 3,251 |
Supplemental Non-qualified Defined Benefit Retirement Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0 | 0 | 0 |
Interest cost | 146 | 133 | 104 |
Expected return on assets | 0 | 0 | 0 |
Amortization of prior service cost (credits) | 0 | 0 | 0 |
Amortization of transition obligation | 0 | 0 | 0 |
Recognized net actuarial loss (gain) | 45 | 66 | 55 |
Net periodic expense | 191 | 199 | 159 |
Non-pension Defined Benefit Postretirement Healthcare Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 222 | 216 | 214 |
Interest cost | 241 | 239 | 343 |
Expected return on assets | 0 | 0 | 0 |
Amortization of prior service cost (credits) | -335 | -278 | -278 |
Amortization of transition obligation | 0 | 0 | 0 |
Recognized net actuarial loss (gain) | 0 | 9 | 139 |
Net periodic expense | $128 | $186 | $418 |
Employee_Benefit_Plans_Accumul1
Employee Benefit Plans: Accumulated Other Comprehensive Income (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Pension Plan [Member] | ||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax [Abstract] | ||
Net loss | $0 | $0 |
Prior service cost | 0 | 0 |
Total accumulated other comprehensive income (loss) | 0 | 0 |
Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year [Abstract] | ||
Net loss | 1,428 | |
Prior service cost | 27 | |
Total net periodic benefit cost expected to be recognized during calendar year 2015 | 1,455 | |
Supplemental Non-qualified Defined Benefit Retirement Plans [Member] | ||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax [Abstract] | ||
Net loss | -801 | -479 |
Prior service cost | 0 | 0 |
Total accumulated other comprehensive income (loss) | -801 | -479 |
Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year [Abstract] | ||
Net loss | 61 | |
Prior service cost | 0 | |
Total net periodic benefit cost expected to be recognized during calendar year 2015 | 61 | |
Non-pension Defined Benefit Postretirement Healthcare Plan [Member] | ||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax [Abstract] | ||
Net loss | 0 | 0 |
Prior service cost | 0 | 0 |
Total accumulated other comprehensive income (loss) | 0 | 0 |
Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year [Abstract] | ||
Net loss | 0 | |
Prior service cost | -218 | |
Total net periodic benefit cost expected to be recognized during calendar year 2015 | ($218) |
Employee_Benefit_Plans_Defined
Employee Benefit Plans: Defined Benefit Plans Assumptions (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | ||||||
Expected long-term rate of return on assets | 6.75% | 7.25% | ||||
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rates [Abstract] | ||||||
1% Increase on Service and Interest Costs | 8 | |||||
1% Increase on Accumulated Periodic Postretirement Benefit Obligation | 195 | |||||
1% Decrease on Service and Interest Cost | -8 | |||||
1% Decrease on Accumulated Periodic Postretirement Benefit Obligation | -178 | |||||
Defined Benefit Pension Plan [Member] | ||||||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | ||||||
Discount rate | 4.25% | 5.10% | 4.35% | |||
Rate of increase in compensation levels | 3.86% | 3.86% | 3.91% | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | ||||||
Discount rate | 5.10% | 4.35% | 4.65% | |||
Expected long-term rate of return on assets | 6.75% | [1] | 7.25% | [1] | 7.25% | [1] |
Rate of increase in compensation levels | 3.86% | 3.91% | 3.67% | |||
Defined Benefit Plan Assumptions Used In Calculating Net Periodic Benefit Cost Expected Rate of Return On Assets For Next Fiscal Year | 6.75% | |||||
Supplemental Non-qualified Defined Benefit Retirement Plans [Member] | ||||||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | ||||||
Discount rate | 3.98% | 4.68% | 4.25% | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | ||||||
Discount rate | 4.68% | 3.88% | 4.70% | |||
Non-pension Defined Benefit Postretirement Healthcare Plan [Member] | ||||||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | ||||||
Discount rate | 3.70% | 4.45% | 3.65% | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | ||||||
Discount rate | 4.45% | 3.65% | 4.35% | |||
Healthcare trend rate pre-65 [Member] | ||||||
Defined Benefit Plan, Assumed Health Care Cost Trend Rates [Abstract] | ||||||
Trend for next year | 7.50% | 7.50% | ||||
Ultimate trend rate | 4.50% | 4.50% | ||||
Year Ultimate Trend Reached | 2027 | 2027 | ||||
Healthcare trend rate post-65 [Member] | ||||||
Defined Benefit Plan, Assumed Health Care Cost Trend Rates [Abstract] | ||||||
Trend for next year | 6.25% | 6.25% | ||||
Ultimate trend rate | 4.50% | 4.50% | ||||
Year Ultimate Trend Reached | 2024 | 2026 | ||||
[1] | The expected rate of return on plan assets is 6.75% for the calculation of the 2015 net periodic pension cost. |
Employee_Benefit_Plans_Project
Employee Benefit Plans: Projected Benefit Plan Payments (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Defined Benefit Pension Plan [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2015 | $3,303 |
2016 | 3,330 |
2017 | 3,455 |
2018 | 3,575 |
2019 | 3,749 |
2020-2024 | 21,109 |
Supplemental Non-qualified Defined Benefit Retirement Plans [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2015 | 217 |
2016 | 217 |
2017 | 248 |
2018 | 246 |
2019 | 244 |
2020-2024 | 1,547 |
Non-pension Defined Benefit Postretirement Healthcare Plan [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2015 | 519 |
2016 | 509 |
2017 | 502 |
2018 | 569 |
2019 | 610 |
2020-2024 | $2,847 |
Employee_Benefit_Plans_Defined1
Employee Benefit Plans: Defined Contribution Plan (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Maximum Annual Contribution Per Employee, Percent | 50.00% |
Employers Matching Contribution, Annual Vesting Percentage | 20.00% |
Employee Vesting Period | 5 years |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Related Party Transaction [Line Items] | |||
Receivables - affiliates | $5,350,000 | $4,934,000 | |
Accounts payable - affiliates | 19,242,000 | 21,082,000 | |
Utility Money Pool Interest Rate | 1.36% | ||
Notes Receivable (Payable), net - Utility Money Pool | 68,626,000 | 17,292,000 | |
Net interest income (expense) | 304,000 | 505,000 | 617,000 |
Purchase of Excess Energy, Cheyenne Light [Member] | |||
Related Party Transaction [Line Items] | |||
Costs and Expenses | 3,033,000 | 3,640,000 | 3,139,000 |
Parent [Member] | |||
Related Party Transaction [Line Items] | |||
Non-cash Dividend to Parent Company | 0 | 8,000,000 | 43,984,000 |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 1.00% | ||
Subsidiary of Common Parent [Member] | |||
Related Party Transaction [Line Items] | |||
Transfer from Investments | 0 | 8,000,000 | 43,984,000 |
Subsidiary of Common Parent [Member] | Purchase Of Natural Gas, Cheyenne Light [Member] | |||
Related Party Transaction [Line Items] | |||
Long-term Purchase Commitment, Period | 40 years | ||
Subsidiary of Common Parent [Member] | Coal, Purchased [Member] | |||
Related Party Transaction [Line Items] | |||
Costs and Expenses | 16,861,000 | 18,542,000 | 20,690,000 |
Subsidiary of Common Parent [Member] | Happy Jack Wind Purchase Power Agreeement [Member] | |||
Related Party Transaction [Line Items] | |||
Date of Contract Expiration | 3-Sep-28 | ||
Number of Megawatts Capacity Purchased | 15 | ||
Costs and Expenses | 1,959,000 | 1,886,000 | 1,988,000 |
Subsidiary of Common Parent [Member] | Silver Sage Wind Power Purchase Agreement [Member] | |||
Related Party Transaction [Line Items] | |||
Date of Contract Expiration | 30-Sep-29 | ||
Number of Megawatts Capacity Purchased | 20 | ||
Cost of Purchased Power | 3,200,000 | 3,207,000 | 3,269,000 |
Subsidiary of Common Parent [Member] | Allocated Costs From Related Parties [Member] | |||
Related Party Transaction [Line Items] | |||
Costs and Expenses | 32,332,000 | 30,738,000 | 24,163,000 |
Subsidiary of Common Parent [Member] | Energy sold to Cheyenne Light [Member] | |||
Related Party Transaction [Line Items] | |||
Revenue | 1,894,000 | 1,338,000 | 2,372,000 |
Subsidiary of Common Parent [Member] | Lease Agreements [Member] | |||
Related Party Transaction [Line Items] | |||
Revenue | $4,102,000 | $3,627,000 | $2,661,000 |
Supplemental_Cash_Flow_Informa2
Supplemental Cash Flow Information (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract] | |||
Property, plant and equipment acquired with accrued liabilities | $4,234,000 | $13,590,000 | $3,969,000 |
Interest and Income Taxes (Paid) Refunded, Cash Flow Information [Abstract] | |||
Interest (net of amounts capitalized) | -19,573,000 | -19,174,000 | -17,099,000 |
Income taxes | 0 | 219,000 | 7,176,000 |
Subsidiary of Common Parent [Member] | |||
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract] | |||
Non-cash decrease to money pool note receivable, net | 0 | -8,000,000 | -43,984,000 |
Parent [Member] | |||
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract] | |||
Non-cash Dividend to Parent Company | $0 | $8,000,000 | $43,984,000 |
Commitment_and_Contingencies_D
Commitment and Contingencies (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Contractual Obligation, Fiscal Year Maturity [Abstract] | |||
2015 | $12,443 | ||
2016 | 12,443 | ||
2017 | 12,443 | ||
2018 | 6,135 | ||
2019 | 6,037 | ||
Thereafter | 21,998 | ||
M D U, Montana Dakota Utilities [Member] | Wygen I I I Generating Facility [Member] | |||
Sales Capacity Commitments [Abstract] | |||
Number of MW Sold Under Long-Term Contract | 25 | ||
City Of Gillette [Member] | Wygen I I I Generating Facility [Member] | |||
Sales Capacity Commitments [Abstract] | |||
Number of MW Sold Under Long-Term Contract | 23 | ||
Purchase Power Contract, MEAN, 10 M W [Member] | |||
Sales Capacity Commitments [Abstract] | |||
Long-term Contract To Sell Electric Power, Date of Contract Expiration | 31-May-23 | ||
Purchase Power Contract, MEAN, 10 M W [Member] | Wygen I I I Generating Facility [Member] | |||
Sales Capacity Commitments [Abstract] | |||
Number of MW Sold Under Long-Term Contract | 10 | ||
Purchase Power Contract, MEAN, 10 M W [Member] | Neil Simpson I I [Member] | |||
Sales Capacity Commitments [Abstract] | |||
Number of MW Sold Under Long-Term Contract | 10 | ||
Purchase Power Contract, MEAN, 5 M W [Member] | |||
Sales Capacity Commitments [Abstract] | |||
Long-term Contract To Sell Electric Power, Date of Contract Expiration | 1-Apr-15 | ||
Purchase Power Contract, MEAN, 5 M W [Member] | Wygen I I I Generating Facility [Member] | |||
Sales Capacity Commitments [Abstract] | |||
Number of MW Sold Under Long-Term Contract | 5 | ||
Purchase Power Contract, MEAN, 5 M W [Member] | Neil Simpson I I [Member] | |||
Sales Capacity Commitments [Abstract] | |||
Number of MW Sold Under Long-Term Contract | 5 | ||
Thunder Creek - Gas Transport Capacity [Member] | |||
Long-term Purchase Commitment [Line Items] | |||
Long Term Contract For Purchase of Fuel, Date of Contract Expiration | 31-Oct-19 | ||
Long-term Purchase Commitment, Amount | 633 | 633 | 633 |
PacifiCorp Purchase Power Agreement [Member] | |||
Long-term Purchase Commitment [Line Items] | |||
Long-term Contract for Purchase of Electric Power, Date of Contract Expiration | 31-Dec-23 | ||
Number of M W Capacity Purchased Under Long-term Contract | 50 | ||
Cost of Purchased Power | 13,943 | 13,026 | 13,224 |
PacifiCorp Transmission [Member] | |||
Long-term Purchase Commitment [Line Items] | |||
Long-term Contract for Purchase of Electric Power, Date of Contract Expiration | 31-Dec-23 | ||
Number of M W Capacity Purchased Under Long-term Contract | 50 | ||
Cost of Purchased Power | $1,227 | $1,384 | $1,215 |
Maximum [Member] | M D U, Montana Dakota Utilities [Member] | |||
Sales Capacity Commitments [Abstract] | |||
Number of MW Sold Under Long-Term Contract | 50 |
Commitment_and_Contingencies_L
Commitment and Contingencies: Legal Proceedings (Details) (Loss from Catastrophes [Member], Oil Creek Fire [Member], USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Minimum [Member] | |
Loss Contingencies [Line Items] | |
Insurance Coverage Deductible Per Occurrence | $1 |
Maximum [Member] | |
Loss Contingencies [Line Items] | |
Loss Contingency, Damages Sought, Value | $55 |
Quarterly_Financial_informatio
Quarterly Financial information Data (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Selected Quarterly Financial Information [Abstract] | |||||||||||
Operating Revenue | $68,751 | $67,729 | $60,741 | $71,267 | $66,110 | $67,268 | $60,832 | $59,817 | $268,488 | $254,027 | $243,309 |
Operating Income | 18,779 | 19,007 | 13,782 | 17,546 | 16,844 | 18,704 | 14,293 | 12,503 | 69,114 | 62,344 | 57,581 |
Net income | $8,773 | $9,916 | $6,230 | $8,643 | $8,641 | $9,298 | $6,652 | $5,582 | $33,562 | $30,173 | $27,086 |
Schedule_II_Valuation_and_Qual1
Schedule II - Valuation and Qualifying Accounts (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Allowance for doubtful accounts, balance at beginning of year | $220 | $102 | $143 |
Additions charged to costs and expenses | 699 | 754 | 503 |
Deductions charged to costs and expenses | -658 | -636 | -544 |
Allowance for doubtful accounts, balance at end of year | $261 | $220 | $102 |