Black Hills Power 10-Q 11 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information Document - shares	6 Months Ended
	Jun. 30, 2015	Jul. 31, 2015
Document Information [Line Items]
Entity Registrant Name	BLACK HILLS POWER INC
Entity Central Index Key	12,400
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		23,416,396

Condensed Statements of Income

Condensed Statements of Income and Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Income Statement [Abstract]
Revenue	$ 68,038	$ 60,741	$ 138,321	$ 132,007
Operating expenses:
Fuel, purchased power and natural gas	19,353	21,278	41,457	48,323
Operations and maintenance	18,121	17,338	35,212	35,448
Depreciation and amortization	7,842	6,972	15,967	13,859
Taxes - property	1,579	1,371	3,052	3,050
Total operating expenses	46,895	46,959	95,688	100,680
Operating income	21,143	13,782	42,633	31,327
Other income (expense):
Interest expense	(5,680)	(4,984)	(11,372)	(9,931)
AFUDC - borrowed	44	57	83	129
Interest income	61	211	165	269
AFUDC - equity	80	117	150	262
Other income (expense), net	63	51	98	95
Total other income (expense)	(5,432)	(4,548)	(10,876)	(9,176)
Income from continuing operations before income taxes	15,711	9,234	31,757	22,151
Income tax expense	(5,164)	(3,004)	(10,807)	(7,278)
Net Income	10,547	6,230	20,950	14,873
Other comprehensive income (loss):
Reclassification adjustments of cash flow hedges settled and included in net income (net of tax (expense) benefit of $(6) and $(5) for the three months ended June 30, 2015 and 2014 and $330 and $(11) for the six months ended June 30, 2015 and 2014, respectively)	10	11	362	21
Reclassification adjustment of benefit plan liability - net gain (loss) (net of tax (expense) benefit of $(8) and $(4) for the three months ended June 30, 2015 and 2014 and $(16) and $(8) for the six months ended June 30, 2015 and 2014, respectively)	16	7	31	14
Other comprehensive income	26	18	393	35
Comprehensive income	$ 10,573	$ 6,248	$ 21,343	$ 14,908

Condensed Statements of Income3

Condensed Statements of Income and Comprehensive Income OCI Parenthetical - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Reclassification adjustment of cash flow hedges settled, (tax) benefit	$ (6)	$ (5)	$ 330	$ (11)
Reclassification adjustment of benefit and other postretirement plans included in net income, (tax) benefit	$ (8)	$ (4)	$ (16)	$ (8)

Condensed Balance Sheets

Condensed Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 79,821	$ 6,620
Receivables - customers, net	27,028	34,684
Receivables - affiliates	7,502	5,350
Other receivables, net	265	259
Money pool notes receivable, net	6,981	68,626
Materials, supplies and fuel	22,720	20,965
Deferred income tax assets, net, current	2,679	13,661
Regulatory assets, current	13,465	10,257
Other, current assets	32,108	4,954
Total current assets	192,569	165,376
Investments	4,681	4,584
Property, plant and equipment	1,119,407	1,115,061
Less accumulated depreciation and amortization	(315,873)	(309,767)
Total property, plant and equipment, net	803,534	805,294
Other assets:
Regulatory assets, non-current	69,132	68,427
Other, non-current assets	15,033	11,708
Total other assets	84,165	80,135
TOTAL ASSETS	1,084,949	1,055,389
Current liabilities:
Accounts payable	17,644	30,543
Accounts payable - affiliates	21,801	19,242
Accrued liabilities	42,100	16,415
Regulatory liabilities, current	431	3,073
Total current liabilities	81,976	69,273
Long-term debt, net of current maturities	342,754	342,752
Deferred credits and other liabilities:
Deferred income tax liability, net, non-current	192,749	193,042
Regulatory liabilities, non-current	52,219	51,916
Benefit plan liabilities	21,880	20,981
Other, non-current liabilities	3,734	2,631
Total deferred credits and other liabilities	$ 270,582	$ 268,570
Commitments and contingencies (Notes 4, 5 and 8)
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	328,072	313,622
Accumulated other comprehensive loss	(1,426)	(1,819)
Total stockholder’s equity	389,637	374,794
TOTAL LIABILITIES AND STOCKHOLDER’S EQUITY	$ 1,084,949	$ 1,055,389

Balance Sheet Parentheticals

Balance Sheet Parentheticals - $ / shares	Jun. 30, 2015	Dec. 31, 2014
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract]
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

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Operating activities:
Net income	$ 20,950	$ 14,873
Adjustments to reconcile net income to net cash provided by operating activities-
Depreciation and amortization	15,967	13,859
Deferred income tax	10,080	7,237
Employee benefits	1,202	647
AFUDC - equity	(150)	(262)
Other adjustments, net	291	(1,720)
Change in operating assets and liabilities -
Accounts receivable and other current assets	582	(8,743)
Accounts payable and other current liabilities	(11,358)	7,802
Other operating activities, net	(2,409)	(2,002)
Net Cash Provided by (Used in) Operating Activities	35,155	31,691
Investing activities:
Property, plant and equipment additions	(17,009)	(43,478)
Change in money pool notes receivable, net	55,145	14,052
Other investing activities	(90)	(105)
Net Cash Provided by (Used in) Investing Activities	38,046	(29,531)
Financing activities:
Other financing activities	0	(133)
Net Cash Provided by (Used in) Financing Activities	0	(133)
Net change in cash and cash equivalents	73,201	2,027
Cash and Cash Equivalents:
Cash and cash equivalents, beginning of period	6,620	2,259
Cash and cash equivalents, end of period	$ 79,821	$ 4,286

Management's Statement_

Management's Statement:	6 Months Ended
	Jun. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Management's Statement	MANAGEMENT’S STATEMENT The unaudited condensed financial statements included herein have been prepared by Black Hills Power, Inc. (the “Company,” “we,” “us,” or “our”), pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations; however, we believe that the footnotes adequately disclose the information presented. These condensed financial statements should be read in conjunction with the financial statements and the notes thereto, included in our 2014 Annual Report on Form 10-K filed with the SEC. Accounting methods historically employed require certain estimates as of interim dates. The information furnished in the accompanying condensed financial statements reflects all adjustments, including accruals, which are, in the opinion of management, necessary for a fair presentation of the June 30, 2015 , December 31, 2014 and June 30, 2014 financial information and are of a normal recurring nature. The results of operations for the three months and six months ended June 30, 2015 and June 30, 2014 , and our financial condition as of June 30, 2015 and December 31, 2014 are not necessarily indicative of the results of operations and financial condition to be expected as of or for any other period. Recently Issued and Adopted Accounting Standards We have implemented all new accounting pronouncements that are in effect and may impact our financial statements. We are currently assessing the impact any other new accounting pronouncements that have been issued may have on our financial position, results of operations, or cash flows. Simplifying the Presentation of Debt Issuance Costs, ASU 2015-03 In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs. Debt issuance costs related to a recognized debt liability will be presented on the balance sheet as a direct deduction from the debt liability, similar to the presentation of debt discounts, rather than as an asset. Amortization of these costs will continue to be reported as interest expense. ASU 2015-03 is effective for annual and interim reporting periods beginning after December 15, 2015. Early adoption is permitted. We are currently evaluating the impact of adoption that ASU 2015-03 will have on our financial position, results of operations, or cash flows. 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. On July 9, 2015, FASB voted to defer the effective date of ASU 2014-09 by one year. The proposed guidance would be effective for annual and interim reporting periods beginning after December 15, 2018 and early adoption is permitted. We are currently evaluating the impact of adoption, if any, that ASU 2014-09 will have on our financial position, results of operations or cash flows.

Accounts Receivable and Allowan

Accounts Receivable and Allowance For Doubtful Accounts:	6 Months Ended
	Jun. 30, 2015
Accounts Receivable, Net [Abstract]
Accounts Receivables	ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS Following is a summary of Receivables - customers, net included in the accompanying Condensed Balance Sheets (in thousands) as of: June 30, 2015 December 31, 2014 Accounts receivable trade $ 16,089 $ 24,946 Unbilled revenues 11,137 9,999 Allowance for doubtful accounts (198 ) (261 ) Receivables - customers, net $ 27,028 $ 34,684

Regulatory Accounting_

Regulatory Accounting:	6 Months Ended
	Jun. 30, 2015
Regulated Operations [Abstract]
Regulatory Assets and Liabilities	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 the FERC. Our regulatory assets and liabilities were as follows (in thousands) as of: Recovery/Amortization Period (in years) June 30, 2015 December 31, 2014 Regulatory assets: Unamortized loss on reacquired debt (a) 10 $ 2,236 $ 2,377 AFUDC (b) 45 8,308 8,365 Employee benefit plans (c) 12 24,418 24,418 Deferred energy and fuel cost adjustments - current (a) Less than 1 year 16,446 14,696 Flow through accounting (a) 35 11,956 11,171 Decommissioning costs, net of amortization (d) 10 12,175 11,786 Other 10 7,058 5,871 Total regulatory assets $ 82,597 $ 78,684 Regulatory liabilities: Cost of removal for utility plant (a) 53 $ 36,523 $ 35,510 Employee benefit plans (c) 12 14,539 14,538 Other 13 1,588 4,941 Total regulatory liabilities $ 52,650 $ 54,989 ____________________ (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 of costs, we are allowed a return on a portion of this amount or a reduction in rate base, respectively. (d) Approximately $12 million of decommissioning costs are allowed a rate of return, in addition to recovery of costs.

Related Party Transactions_

Related Party Transactions:	6 Months Ended
	Jun. 30, 2015
Related Party Transactions [Abstract]
Related Party Transactions Disclosure	RELATED-PARTY TRANSACTIONS Receivables and Payables We have accounts receivable and accounts payable balances related to transactions with other BHC subsidiaries. The balances were as follows (in thousands) as of: June 30, 2015 December 31, 2014 Receivables - affiliates $ 7,502 $ 5,350 Accounts payable - affiliates $ 21,801 $ 19,242 Money Pool Notes Receivable and Notes Payable We have entered into a Utility Money Pool Agreement (the “Agreement”) with BHC, Cheyenne Light and Black Hills Energy. We are the administrator of the Money Pool. Under the Agreement, we may borrow from BHC; however the Agreement restricts us from loaning funds to BHC or to any of BHC’s non-utility subsidiaries. The Agreement does not restrict us from paying dividends to BHC. Borrowings and advances 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 plus 1.0% . At June 30, 2015 , the average cost of borrowing under the Utility Money Pool was 1.41% . We had the following balances with the Utility Money Pool (in thousands) as of: June 30, 2015 December 31, 2014 Money pool notes receivable, net $ 6,981 $ 68,626 Our net interest income (expense) relating to balances with the Utility Money Pool was as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Net interest income (expense) $ 288 $ 27 $ 546 $ 84 Other related party activity was as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Revenue: Energy sold to Cheyenne Light $ 379 $ 397 $ 705 $ 1,076 Rent from electric properties $ 1,332 $ 1,051 $ 2,456 $ 2,074 Fuel and purchased power : Purchases of coal from WRDC $ 4,099 $ 4,018 $ 8,144 $ 9,032 Purchase of excess energy from Cheyenne Light $ 213 $ 584 $ 689 $ 1,213 Purchase of renewable wind energy from Cheyenne Light - Happy Jack $ 280 $ 465 $ 829 $ 1,129 Purchase of renewable wind energy from Cheyenne Light - Silver Sage $ 498 $ 750 $ 1,434 $ 1,844 Gas transportation service agreement Gas transportation service agreement with Cheyenne Light for firm and interruptible gas transportation $ 103 $ — $ 207 $ — Corporate support: Corporate support services and fees from Parent, Black Hills Service Company and Black Hills Utility Holdings $ 6,627 $ 6,703 $ 13,660 $ 14,190

Employee Benefit Plans_

Employee Benefit Plans:	6 Months Ended
	Jun. 30, 2015
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]
Employee Benefit Plans Disclosure	EMPLOYEE BENEFIT PLANS Defined Benefit Pension Plan The components of net periodic benefit cost for the Defined Benefit Pension Plan were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Service cost $ 199 $ 176 $ 398 $ 352 Interest cost 739 748 1,478 1,496 Expected return on plan assets (984 ) (925 ) (1,968 ) (1,851 ) Prior service cost 11 10 22 21 Net loss (gain) 549 235 1,098 470 Net periodic benefit cost $ 514 $ 244 $ 1,028 $ 488 Defined Benefit Postretirement Healthcare Plan The components of net periodic benefit cost for the Defined Benefit Postretirement Healthcare Plan were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Service cost $ 59 $ 56 $ 117 $ 112 Interest cost 53 60 107 120 Prior service cost (benefit) (84 ) (84 ) (168 ) (168 ) Net loss (gain) — — — — Net periodic benefit cost $ 28 $ 32 $ 56 $ 64 Supplemental Non-qualified Defined Benefit Plans The components of net periodic benefit cost for the Supplemental Non-qualified Defined Benefit Plans were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Interest cost $ 36 $ 36 $ 72 $ 73 Net loss (gain) 23 11 46 22 Net periodic benefit cost $ 59 $ 47 $ 118 $ 95 Contributions We anticipate we will make contributions to the benefit plans during 2015 and 2016 . Contributions to the Defined Benefit Pension Plan are cash contributions made directly to the Pension Plan Trust accounts. Contributions to the Healthcare and Supplemental Plans are made in the form of benefit payments. Contributions and anticipated contributions are as follows (in thousands): Contributions Six Months Ended June 30, 2015 Remaining Anticipated Contributions for 2015 Anticipated Contributions for 2016 Defined Benefit Pension Plan $ — $ — $ — Defined Benefit Postretirement Healthcare Plan $ 260 $ 260 $ 577 Supplemental Non-qualified Defined Benefit Plans $ 109 $ 109 $ 184

Fair Value of Financial Instrum

Fair Value of Financial Instruments:	6 Months Ended
	Jun. 30, 2015
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	FAIR VALUE OF FINANCIAL INSTRUMENTS Fair value is defined 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. Accounting guidance on fair value measurements establishes a hierarchy for grouping assets and liabilities, based on significance of inputs. For additional information see Note 1 included in our 2014 Annual Report on Form 10-K filed with the SEC. The estimated fair values of our financial instruments were as follows (in thousands) as of: June 30, 2015 December 31, 2014 Carrying Amount Fair Value Carrying Amount Fair Value Cash and cash equivalents (a) $ 79,821 $ 79,821 $ 6,620 $ 6,620 Long-term debt, including current maturities (b) $ 342,754 $ 401,081 $ 342,752 $ 430,497 _________________ (a) Carrying value approximates fair 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.

Supplemental Disclosure of Cash

Supplemental Disclosure of Cash Flow Information:	6 Months Ended
	Jun. 30, 2015
Supplemental Cash Flow Information [Abstract]
Cash Flow, Supplemental Disclosures	SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Six months ended June 30, 2015 2014 (in thousands) Non-cash investing and financing activities - Property, plant and equipment acquired with accrued liabilities $ 2,225 $ 9,824 Non-cash (decrease) to money pool notes receivable, net $ (6,500 ) $ — Non-cash dividend to Parent $ 6,500 $ — Cash (paid) refunded during the period for - Interest (net of amounts capitalized) $ (11,063 ) $ (9,678 ) Income taxes, net $ — $ —

Commitment and Contingencies_

Commitment and Contingencies:	6 Months Ended
	Jun. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies Disclosure	COMMITMENTS AND CONTINGENCIES Other than the item discussed below, there have been no significant changes to commitments and contingencies from those previously disclosed in Note 11 of our Notes to the Financial Statements in our 2014 Annual Report on Form 10-K. 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 Black Hills Power. 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 expert 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, 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, 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 expert investigations and our review of damage claim documentation are 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. Based on the legal standard for measuring damages that we believe applies to this matter, we estimate the current total claims to be approximately $55 million ; however the actual amount of allowed claims and any loss will depend on the resolution of certain factual and legal issues. 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 consolidated financial condition, results of operations or cash flows.

Accounts Receivable and Allow15

Accounts Receivable and Allowance For Doubtful Accounts: Accounts Receivable (Tables)	6 Months Ended
	Jun. 30, 2015
Accounts Receivable, Net [Abstract]
Schedule of Accounts Receivable	Following is a summary of Receivables - customers, net included in the accompanying Condensed Balance Sheets (in thousands) as of: June 30, 2015 December 31, 2014 Accounts receivable trade $ 16,089 $ 24,946 Unbilled revenues 11,137 9,999 Allowance for doubtful accounts (198 ) (261 ) Receivables - customers, net $ 27,028 $ 34,684

Regulatory Accounting_ Regulato

Regulatory Accounting: Regulatory Accounting (Tables)	6 Months Ended
	Jun. 30, 2015
Regulated Operations [Abstract]
Schedule of Regulatory Assets	Our regulatory assets and liabilities were as follows (in thousands) as of: Recovery/Amortization Period (in years) June 30, 2015 December 31, 2014 Regulatory assets: Unamortized loss on reacquired debt (a) 10 $ 2,236 $ 2,377 AFUDC (b) 45 8,308 8,365 Employee benefit plans (c) 12 24,418 24,418 Deferred energy and fuel cost adjustments - current (a) Less than 1 year 16,446 14,696 Flow through accounting (a) 35 11,956 11,171 Decommissioning costs, net of amortization (d) 10 12,175 11,786 Other 10 7,058 5,871 Total regulatory assets $ 82,597 $ 78,684
Schedule of Regulatory Liabilities	Regulatory liabilities: Cost of removal for utility plant (a) 53 $ 36,523 $ 35,510 Employee benefit plans (c) 12 14,539 14,538 Other 13 1,588 4,941 Total regulatory liabilities $ 52,650 $ 54,989 ____________________ (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 of costs, we are allowed a return on a portion of this amount or a reduction in rate base, respectively. (d) Approximately $12 million of decommissioning costs are allowed a rate of return, in addition to recovery of costs.

Related Party Transactions_ Rel

Related Party Transactions: Related Party Transactions (Tables)	6 Months Ended
	Jun. 30, 2015
Related Party Transactions [Abstract]
Schedule of Related Party Accounts Receivable and Payable	The balances were as follows (in thousands) as of: June 30, 2015 December 31, 2014 Receivables - affiliates $ 7,502 $ 5,350 Accounts payable - affiliates $ 21,801 $ 19,242
Schedule of Related Party Notes	We had the following balances with the Utility Money Pool (in thousands) as of: June 30, 2015 December 31, 2014 Money pool notes receivable, net $ 6,981 $ 68,626
Schedule of Related Party Interest Income Expense	Our net interest income (expense) relating to balances with the Utility Money Pool was as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Net interest income (expense) $ 288 $ 27 $ 546 $ 84
Schedule of Revenues and Purchases from Related Parties	Other related party activity was as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Revenue: Energy sold to Cheyenne Light $ 379 $ 397 $ 705 $ 1,076 Rent from electric properties $ 1,332 $ 1,051 $ 2,456 $ 2,074 Fuel and purchased power : Purchases of coal from WRDC $ 4,099 $ 4,018 $ 8,144 $ 9,032 Purchase of excess energy from Cheyenne Light $ 213 $ 584 $ 689 $ 1,213 Purchase of renewable wind energy from Cheyenne Light - Happy Jack $ 280 $ 465 $ 829 $ 1,129 Purchase of renewable wind energy from Cheyenne Light - Silver Sage $ 498 $ 750 $ 1,434 $ 1,844 Gas transportation service agreement Gas transportation service agreement with Cheyenne Light for firm and interruptible gas transportation $ 103 $ — $ 207 $ — Corporate support: Corporate support services and fees from Parent, Black Hills Service Company and Black Hills Utility Holdings $ 6,627 $ 6,703 $ 13,660 $ 14,190

Employee Benefit Plans_ Employe

Employee Benefit Plans: Employee Benefit Plans (Tables)	6 Months Ended
	Jun. 30, 2015
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]
Schedule of Net Benefit Costs	The components of net periodic benefit cost for the Defined Benefit Pension Plan were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Service cost $ 199 $ 176 $ 398 $ 352 Interest cost 739 748 1,478 1,496 Expected return on plan assets (984 ) (925 ) (1,968 ) (1,851 ) Prior service cost 11 10 22 21 Net loss (gain) 549 235 1,098 470 Net periodic benefit cost $ 514 $ 244 $ 1,028 $ 488 Defined Benefit Postretirement Healthcare Plan The components of net periodic benefit cost for the Defined Benefit Postretirement Healthcare Plan were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Service cost $ 59 $ 56 $ 117 $ 112 Interest cost 53 60 107 120 Prior service cost (benefit) (84 ) (84 ) (168 ) (168 ) Net loss (gain) — — — — Net periodic benefit cost $ 28 $ 32 $ 56 $ 64 Supplemental Non-qualified Defined Benefit Plans The components of net periodic benefit cost for the Supplemental Non-qualified Defined Benefit Plans were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Interest cost $ 36 $ 36 $ 72 $ 73 Net loss (gain) 23 11 46 22 Net periodic benefit cost $ 59 $ 47 $ 118 $ 95
Schedule of Defined Benefit Plans Contributions	Contributions and anticipated contributions are as follows (in thousands): Contributions Six Months Ended June 30, 2015 Remaining Anticipated Contributions for 2015 Anticipated Contributions for 2016 Defined Benefit Pension Plan $ — $ — $ — Defined Benefit Postretirement Healthcare Plan $ 260 $ 260 $ 577 Supplemental Non-qualified Defined Benefit Plans $ 109 $ 109 $ 184

Fair Value of Financial Instr19

Fair Value of Financial Instruments: Fair Value of Financial Instruments(Tables)	6 Months Ended
	Jun. 30, 2015
Fair Value Disclosures [Abstract]
Schedule of Fair Value of Financial Instruments	The estimated fair values of our financial instruments were as follows (in thousands) as of: June 30, 2015 December 31, 2014 Carrying Amount Fair Value Carrying Amount Fair Value Cash and cash equivalents (a) $ 79,821 $ 79,821 $ 6,620 $ 6,620 Long-term debt, including current maturities (b) $ 342,754 $ 401,081 $ 342,752 $ 430,497 _________________ (a) Carrying value approximates fair 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.

Supplemental Disclosure of Ca20

Supplemental Disclosure of Cash Flow Information: Supplemental Disclosures of Cash Flow Information (Tables)	6 Months Ended
	Jun. 30, 2015
Supplemental Cash Flow Information [Abstract]
Schedule of Cash Flow, Supplemental Disclosures	Six months ended June 30, 2015 2014 (in thousands) Non-cash investing and financing activities - Property, plant and equipment acquired with accrued liabilities $ 2,225 $ 9,824 Non-cash (decrease) to money pool notes receivable, net $ (6,500 ) $ — Non-cash dividend to Parent $ 6,500 $ — Cash (paid) refunded during the period for - Interest (net of amounts capitalized) $ (11,063 ) $ (9,678 ) Income taxes, net $ — $ —

Accounts Receivable and Allow21

Accounts Receivable and Allowance For Doubtful Accounts: Accounts Receivable (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Accounts Receivable [Line Items]
Allowance for doubtful accounts	$ (198)	$ (261)
Receivables - customers, net	27,028	34,684
Billed Revenues [Member]
Accounts Receivable [Line Items]
Accounts receivable, trade	16,089	24,946
Unbilled Revenues [Member]
Accounts Receivable [Line Items]
Accounts receivable, trade	$ 11,137	$ 9,999

Regulatory Accounting_ Regula22

Regulatory Accounting: Regulatory Accounting (Details) - USD ($) $ in Thousands		6 Months Ended
		Jun. 30, 2015	Dec. 31, 2014
Schedule of Regulatory Assets and Liabilities [Line Items]
Regulatory Assets		$ 82,597	$ 78,684
Regulatory Liabilities		$ 52,650	54,989
Cost of removal for utility plant [Member]
Schedule of Regulatory Assets and Liabilities [Line Items]
Regulatory Liabilities Amortization Period, Unclassified		53 years
Regulatory Liabilities	[1]	$ 36,523	35,510
Employee benefit plans [Member]
Schedule of Regulatory Assets and Liabilities [Line Items]
Regulatory Liabilities Amortization Period, Unclassified		12 years
Regulatory Liabilities	[2]	$ 14,539	14,538
Other regulatory liabilities [Member]
Schedule of Regulatory Assets and Liabilities [Line Items]
Regulatory Liabilities Amortization Period, Unclassified		13 years
Regulatory Liabilities		$ 1,588	4,941
Unamortized Loss on reacquired debt [Member]
Schedule of Regulatory Assets and Liabilities [Line Items]
Regulatory Assets Amortization Period, Unclassified		10 years
Regulatory Assets	[1]	$ 2,236	2,377
Allowance For Funds Used During Construction [Member]
Schedule of Regulatory Assets and Liabilities [Line Items]
Regulatory Assets Amortization Period, Unclassified		45 years
Regulatory Assets	[3]	$ 8,308	8,365
Employee benefit plans [Member]
Schedule of Regulatory Assets and Liabilities [Line Items]
Regulatory Assets Amortization Period, Unclassified		12 years
Regulatory Assets	[2]	$ 24,418	24,418
Deferred energy and fuel cost adjustments - current [Member]
Schedule of Regulatory Assets and Liabilities [Line Items]
Regulatory Assets	[1]	$ 16,446	14,696
Flow through accounting [Member]
Schedule of Regulatory Assets and Liabilities [Line Items]
Regulatory Assets Amortization Period, Unclassified		35 years
Regulatory Assets	[1]	$ 11,956	11,171
Decommissioning costs, net of amortization [Member]
Schedule of Regulatory Assets and Liabilities [Line Items]
Regulatory Assets Amortization Period, Unclassified		10 years
Regulatory Assets	[4]	$ 12,175	11,786
Other regulatory assets [Member]
Schedule of Regulatory Assets and Liabilities [Line Items]
Regulatory Assets Amortization Period, Unclassified		10 years
Regulatory Assets		$ 7,058	$ 5,871
[1]	Recovery of costs, but we are not allowed a rate of return.
[2]	In addition to recovery of costs, we are allowed a return on a portion of this amount or a reduction in rate base, respectively.
[3]	In addition to recovery of costs, we are allowed a rate of return.
[4]	Approximately $12 million of decommissioning costs are allowed a rate of return, in addition to recovery of costs.

Related Party Transactions_ R23

Related Party Transactions: Related Party Transactions (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Related Party Transaction [Line Items]
Receivables - affiliates	$ 7,502		$ 7,502		$ 5,350
Accounts payable - affiliates	21,801		$ 21,801		19,242
Related Party Transaction, Utility Money Pool Interest Rate			1.41%
Money pool notes receivable, net	6,981		$ 6,981		$ 68,626
Parent [Member]
Related Party Transaction [Line Items]
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage			1.00%
Utility Money Pool [Member]
Related Party Transaction [Line Items]
Interest Income (Expense), Net	288	$ 27	$ 546	$ 84
Subsidiary of Common Parent [Member] | Allocated Costs From Related Parties [Member]
Related Party Transaction [Line Items]
Costs and Expenses, Related Party	6,627	6,703	13,660	14,190
Subsidiary of Common Parent [Member] | Purchase Of Natural Gas, Cheyenne Light [Member]
Related Party Transaction [Line Items]
Costs and Expenses, Related Party	103	0	207	0
Subsidiary of Common Parent [Member] | Coal, Purchased [Member]
Related Party Transaction [Line Items]
Costs and Expenses, Related Party	4,099	4,018	8,144	9,032
Subsidiary of Common Parent [Member] | Purchase of Excess Energy, Cheyenne Light [Member]
Related Party Transaction [Line Items]
Costs and Expenses, Related Party	213	584	689	1,213
Subsidiary of Common Parent [Member] | Happy Jack Wind Purchase Power Agreeement [Member]
Related Party Transaction [Line Items]
Costs and Expenses, Related Party	280	465	829	1,129
Subsidiary of Common Parent [Member] | Silver Sage Wind Power Purchase Agreement [Member]
Related Party Transaction [Line Items]
Costs and Expenses, Related Party	498	750	1,434	1,844
Subsidiary of Common Parent [Member] | Energy sold to Cheyenne Light [Member]
Related Party Transaction [Line Items]
Revenue from Related Parties	379	397	705	1,076
Subsidiary of Common Parent [Member] | Lease Agreements [Member]
Related Party Transaction [Line Items]
Revenue from Related Parties	$ 1,332	$ 1,051	$ 2,456	$ 2,074

Employee Benefit Plans_ Emplo24

Employee Benefit Plans: Employee Benefit Plans (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Defined Benefit Pension Plan
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract]
Service cost	$ 199	$ 176	$ 398	$ 352
Interest cost	739	748	1,478	1,496
Expected return on plan assets	(984)	(925)	(1,968)	(1,851)
Prior service cost (benefit)	11	10	22	21
Net loss (gain)	549	235	1,098	470
Net periodic benefit cost	514	244	1,028	488
Pension and Other Postretirement Benefit Contributions [Abstract]
Contributions made by Employer			0
Remaining Anticipated Contributions for Current Year			0
Anticipated Contributions for Next Year			0
Defined Benefit Postretirement Healthcare Plan
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract]
Service cost	59	56	117	112
Interest cost	53	60	107	120
Prior service cost (benefit)	(84)	(84)	(168)	(168)
Net loss (gain)	0	0	0	0
Net periodic benefit cost	28	32	56	64
Pension and Other Postretirement Benefit Contributions [Abstract]
Contributions made by Employer			260
Remaining Anticipated Contributions for Current Year			260
Anticipated Contributions for Next Year			577
Supplemental Non-qualified Defined Benefit Plans
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract]
Interest cost	36	36	72	73
Net loss (gain)	23	11	46	22
Net periodic benefit cost	$ 59	$ 47	118	$ 95
Pension and Other Postretirement Benefit Contributions [Abstract]
Contributions made by Employer			109
Remaining Anticipated Contributions for Current Year			109
Anticipated Contributions for Next Year			$ 184

Fair Value of Financial Instr25

Fair Value of Financial Instruments: Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands		Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014	Dec. 31, 2013
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents, carrying amount		$ 79,821	$ 6,620	$ 4,286	$ 2,259
Carrying Amount [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents, carrying amount	[1]	79,821	6,620
Long-term debt, including current maturities, carrying amount	[2]	342,754	342,752
Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents, fair value	[1]	79,821	6,620
Long-term debt, including current maturities, fair value	[2]	$ 401,081	$ 430,497
[1]	Carrying value approximates fair 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.

Supplemental Disclosure of Ca26

Supplemental Disclosure of Cash Flow Information: Supplemental Disclosures of Cash Flow Information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Noncash Investing and Financing Items [Abstract]
Property, plant and equipment acquired with accrued liabilities	$ 2,225	$ 9,824
Interest and Income Taxes Paid Net [Abstract]
Interest paid, (net of amounts capitalized)	(11,063)	(9,678)
Income taxes, net	0	0
Subsidiary of Common Parent [Member]
Noncash Investing and Financing Items [Abstract]
Non-cash (decrease) to money pool notes receivable, net	(6,500)	0
Parent [Member]
Noncash Investing and Financing Items [Abstract]
Non-cash dividend to Parent	$ 6,500	$ 0

Commitment and Contingencies_ O

Commitment and Contingencies: Oil Creek Fire (Details) - Pending Litigation [Member] - Oil Creek Fire [Member] - Loss from Catastrophes [Member] $ in Millions	6 Months Ended
	Jun. 30, 2015USD ($)
Minimum [Member]
Loss Contingencies [Line Items]
Insurance Coverage Deductible Per Occurrence	$ 1
Maximum [Member]
Loss Contingencies [Line Items]
Loss Contingency, Damages Sought, Value	$ 55