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 |