Black Hills Power 10-Q 10 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information Document - shares	9 Months Ended
	Sep. 30, 2015	Oct. 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	Sep. 30, 2015
Amendment Flag	false
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
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		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Statement [Abstract]
Revenue	$ 72,111	$ 67,729	$ 210,432	$ 199,736
Operating expenses:
Fuel, purchased power and natural gas	21,983	23,919	63,440	72,242
Operations and maintenance	16,979	16,261	52,191	51,709
Depreciation and amortization	8,248	7,090	24,215	20,949
Taxes - property	1,445	1,452	4,497	4,502
Total operating expenses	48,655	48,722	144,343	149,402
Operating income	23,456	19,007	66,089	50,334
Other income (expense):
Interest expense	(5,542)	(4,992)	(16,914)	(14,923)
AFUDC - borrowed	239	76	322	205
Interest income	269	201	434	470
AFUDC - equity	434	165	584	427
Other income (expense), net	21	5	119	100
Total other income (expense)	(4,579)	(4,545)	(15,455)	(13,721)
Income from continuing operations before income taxes	18,877	14,462	50,634	36,613
Income tax expense	(6,590)	(4,546)	(17,397)	(11,824)
Net Income	12,287	9,916	33,237	24,789
Other comprehensive income (loss):
Reclassification adjustments of cash flow hedges settled and included in net income (net of tax (expense) benefit of $(5) and $(6) for the three months ended September 30, 2015 and 2014 and $325 and $(17) for the nine months ended September 30, 2015 and 2014, respectively)	11	10	373	31
Reclassification adjustment of benefit plan liability - net gain (loss) (net of tax (expense) benefit of $(9) and $(4) for the three months ended September 30, 2015 and 2014 and $(25) and $(12) for the nine months ended September 30, 2015 and 2014, respectively)	15	8	46	22
Other comprehensive income	26	18	419	53
Comprehensive income	$ 12,313	$ 9,934	$ 33,656	$ 24,842

Condensed Statements of Income3

Condensed Statements of Income and Comprehensive Income OCI Parenthetical - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Statement [Abstract]
Reclassification adjustment of cash flow hedges settled, (tax) benefit	$ (5)	$ (6)	$ 325	$ (17)
Reclassification adjustment of benefit and other postretirement plans included in net income, (tax) benefit	$ (9)	$ (4)	$ (25)	$ (12)

Condensed Balance Sheets

Condensed Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 30,076	$ 6,620
Receivables - customers, net	25,858	34,684
Receivables - affiliates	8,499	5,350
Other receivables, net	205	259
Money pool notes receivable, net	64,820	68,626
Materials, supplies and fuel	22,858	20,965
Deferred income tax assets, net, current	6,049	13,661
Regulatory assets, current	12,193	10,257
Other, current assets	36,546	4,954
Total current assets	207,104	165,376
Investments	4,698	4,584
Property, plant and equipment	1,138,500	1,115,061
Less accumulated depreciation and amortization	(321,467)	(309,767)
Total property, plant and equipment, net	817,033	805,294
Other assets:
Regulatory assets, non-current	73,075	68,427
Other, non-current assets	4,003	11,708
Total other assets	77,078	80,135
TOTAL ASSETS	1,105,913	1,055,389
Current liabilities:
Accounts payable	20,726	30,543
Accounts payable - affiliates	20,118	19,242
Accrued liabilities	58,967	16,415
Regulatory liabilities, current	0	3,073
Total current liabilities	99,811	69,273
Long-term debt, net of current maturities	342,755	342,752
Deferred credits and other liabilities:
Deferred income tax liability, net, non-current	194,657	193,042
Regulatory liabilities, non-current	52,966	51,916
Benefit plan liabilities	22,345	20,981
Other, non-current liabilities	3,430	2,631
Total deferred credits and other liabilities	$ 273,398	$ 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	328,358	313,622
Accumulated other comprehensive loss	(1,400)	(1,819)
Total stockholder’s equity	389,949	374,794
TOTAL LIABILITIES AND STOCKHOLDER’S EQUITY	$ 1,105,913	$ 1,055,389

Balance Sheet Parentheticals

Balance Sheet Parentheticals - $ / shares	Sep. 30, 2015	Dec. 31, 2014
Statement of Financial Position [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	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Operating activities:
Net income	$ 33,237	$ 24,789
Adjustments to reconcile net income to net cash provided by operating activities-
Depreciation and amortization	24,215	20,949
Deferred income tax	8,161	11,803
Employee benefits	1,802	971
AFUDC - equity	(584)	(427)
Other adjustments, net	139	(55)
Change in operating assets and liabilities -
Accounts receivable and other current assets	1,291	(11,368)
Accounts payable and other current liabilities	5,638	12,787
Contributions to defined benefit pension plan	0	(1,696)
Other operating activities, net	3,692	(6,851)
Net cash provided by (used in) operating activities	77,591	50,902
Investing activities:
Property, plant and equipment additions	(39,338)	(72,460)
Change in money pool notes receivable, net	(14,694)	17,292
Other investing activities	(103)	(123)
Net cash provided by (used in) investing activities	(54,135)	(55,291)
Financing activities:
Change in money pool notes payable, net	0	19,433
Long-term debt - repayments	0	(12,200)
Other financing activities	0	(462)
Net cash provided by (used in) financing activities	0	6,771
Net change in cash and cash equivalents	23,456	2,382
Cash and Cash Equivalents:
Cash and cash equivalents, beginning of period	6,620	2,259
Cash and cash equivalents, end of period	$ 30,076	$ 4,641

Management's Statement_

Management's Statement:	9 Months Ended
	Sep. 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 September 30, 2015 , December 31, 2014 and September 30, 2014 financial information and are of a normal recurring nature. The results of operations for the three months and nine months ended September 30, 2015 and September 30, 2014 , and our financial condition as of September 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:	9 Months Ended
	Sep. 30, 2015
Accounts Receivable, Net [Abstract]
Accounts Receivable and Allowance for Doubtful Accounts	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: September 30, 2015 December 31, 2014 Accounts receivable trade $ 14,698 $ 24,946 Unbilled revenues 11,366 9,999 Allowance for doubtful accounts (206 ) (261 ) Receivables - customers, net $ 25,858 $ 34,684

Regulatory Accounting_

Regulatory Accounting:	9 Months Ended
	Sep. 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) September 30, 2015 December 31, 2014 Regulatory assets: Unamortized loss on reacquired debt (a) 10 $ 2,165 $ 2,377 AFUDC (b) 45 8,463 8,365 Employee benefit plans (c) 12 24,418 24,418 Deferred energy and fuel cost adjustments - current (a) Less than 1 year 17,764 14,696 Flow through accounting (a) 35 11,622 11,171 Decommissioning costs, net of amortization (d) 10 13,304 11,786 Other 10 7,532 5,871 Total regulatory assets $ 85,268 $ 78,684 Regulatory liabilities: Cost of removal for utility plant (a) 53 $ 37,325 $ 35,510 Employee benefit plans (c) 12 14,538 14,538 Other 13 1,103 4,941 Total regulatory liabilities $ 52,966 $ 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 $13 million of decommissioning costs are allowed a rate of return, in addition to recovery of costs.

Related Party Transactions_

Related Party Transactions:	9 Months Ended
	Sep. 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: September 30, 2015 December 31, 2014 Receivables - affiliates $ 8,499 $ 5,350 Accounts payable - affiliates $ 20,118 $ 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 September 30, 2015 , the average cost of borrowing under the Utility Money Pool was 1.39% . We had the following balances with the Utility Money Pool (in thousands) as of: September 30, 2015 December 31, 2014 Money pool notes receivable, net $ 64,820 $ 68,626 Our net interest income (expense) relating to balances with the Utility Money Pool was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Net interest income (expense) $ 309 $ (3 ) $ 855 $ 81 Other related party activity was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Revenue: Energy sold to Cheyenne Light $ 553 $ 391 $ 1,258 $ 1,467 Rent from electric properties $ 1,158 $ 1,126 $ 3,614 $ 3,200 Fuel and purchased power : Purchases of coal from WRDC $ 4,580 $ 4,854 $ 12,724 $ 13,886 Purchase of excess energy from Cheyenne Light $ 111 $ 1,117 $ 800 $ 2,330 Purchase of renewable wind energy from Cheyenne Light - Happy Jack $ 268 $ 264 $ 1,097 $ 1,393 Purchase of renewable wind energy from Cheyenne Light - Silver Sage $ 476 $ 430 $ 1,910 $ 2,274 Gas transportation service agreement: Gas transportation service agreement with Cheyenne Light for firm and interruptible gas transportation $ 103 $ — $ 310 $ — Corporate support: Corporate support services and fees from Parent, Black Hills Service Company and Black Hills Utility Holdings $ 6,213 $ 6,274 $ 19,873 $ 20,433

Employee Benefit Plans_

Employee Benefit Plans:	9 Months Ended
	Sep. 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 September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Service cost $ 199 $ 176 $ 597 $ 528 Interest cost 739 748 2,217 2,244 Expected return on plan assets (984 ) (925 ) (2,952 ) (2,776 ) Prior service cost 11 11 33 32 Net loss (gain) 549 235 1,647 705 Net periodic benefit cost $ 514 $ 245 $ 1,542 $ 733 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 September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Service cost $ 59 $ 56 $ 176 $ 168 Interest cost 53 60 160 180 Prior service cost (benefit) (84 ) (84 ) (252 ) (252 ) Net periodic benefit cost $ 28 $ 32 $ 84 $ 96 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 September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Interest cost $ 35 $ 36 $ 107 $ 109 Net loss (gain) 23 11 69 33 Net periodic benefit cost $ 58 $ 47 $ 176 $ 142 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 Nine Months Ended September 30, 2015 Remaining Anticipated Contributions for 2015 Anticipated Contributions for 2016 Defined Benefit Pension Plan $ — $ — $ 1,657 Defined Benefit Postretirement Healthcare Plan $ 390 $ 130 $ 577 Supplemental Non-qualified Defined Benefit Plans $ 163 $ 54 $ 184

Fair Value of Financial Instrum

Fair Value of Financial Instruments:	9 Months Ended
	Sep. 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: September 30, 2015 December 31, 2014 Carrying Amount Fair Value Carrying Amount Fair Value Cash and cash equivalents (a) $ 30,076 $ 30,076 $ 6,620 $ 6,620 Long-term debt, including current maturities (b) $ 342,755 $ 412,707 $ 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:	9 Months Ended
	Sep. 30, 2015
Supplemental Cash Flow Information [Abstract]
Cash Flow, Supplemental Disclosures	SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Nine months ended September 30, 2015 2014 (in thousands) Non-cash investing and financing activities - Property, plant and equipment acquired with accrued liabilities $ 2,074 $ 9,534 Non-cash (decrease) to money pool notes receivable, net $ (18,500 ) $ — Non-cash dividend to Parent $ 18,500 $ — Cash (paid) refunded during the period for - Interest (net of amounts capitalized) $ (14,192 ) $ (13,301 ) Income taxes, net $ — $ —

Commitment and Contingencies_

Commitment and Contingencies:	9 Months Ended
	Sep. 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 us. 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 intervened in the lawsuit. These parties asserted 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. On September 30, 2015, we agreed to a settlement with the State of Wyoming. The settlement amount is not material to the Company. We have recorded a corresponding receivable as we believe our settlement costs are reimbursable and probable of recovery under our insurance coverage. A trial for the private landowners’ suit has been scheduled to commence in February 2016. The private landowners’ claims for damages against us include allegations of negligence, negligence per se, common law nuisance and trespass. In addition to claims for compensatory damages, the lawsuit sought recovery of punitive damages; however, in October 2015, the court dismissed the claim for punitive damages. At that time, the court also ruled on a motion regarding the measure of damages to be applied to this matter. Based on that standard, we estimate the current total private 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 have denied and continue to vigorously defend these claims. However, civil litigation of this kind 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 our review of damage claim documentation and related expert opinions is ongoing, and there are significant factual and legal issues to be resolved relating to potential damage claims. Further claims may be presented by other parties. 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.

Accounts Receivable and Allow15

Accounts Receivable and Allowance For Doubtful Accounts: Accounts Receivable and Allowance For Doubtful Accounts (Tables)	9 Months Ended
	Sep. 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: September 30, 2015 December 31, 2014 Accounts receivable trade $ 14,698 $ 24,946 Unbilled revenues 11,366 9,999 Allowance for doubtful accounts (206 ) (261 ) Receivables - customers, net $ 25,858 $ 34,684

Regulatory Accounting_ Regulato

Regulatory Accounting: Regulatory Accounting (Tables)	9 Months Ended
	Sep. 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) September 30, 2015 December 31, 2014 Regulatory assets: Unamortized loss on reacquired debt (a) 10 $ 2,165 $ 2,377 AFUDC (b) 45 8,463 8,365 Employee benefit plans (c) 12 24,418 24,418 Deferred energy and fuel cost adjustments - current (a) Less than 1 year 17,764 14,696 Flow through accounting (a) 35 11,622 11,171 Decommissioning costs, net of amortization (d) 10 13,304 11,786 Other 10 7,532 5,871 Total regulatory assets $ 85,268 $ 78,684
Schedule of Regulatory Liabilities	Regulatory liabilities: Cost of removal for utility plant (a) 53 $ 37,325 $ 35,510 Employee benefit plans (c) 12 14,538 14,538 Other 13 1,103 4,941 Total regulatory liabilities $ 52,966 $ 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 $13 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)	9 Months Ended
	Sep. 30, 2015
Related Party Transactions [Abstract]
Schedule of Related Party Accounts Receivable and Payable	The balances were as follows (in thousands) as of: September 30, 2015 December 31, 2014 Receivables - affiliates $ 8,499 $ 5,350 Accounts payable - affiliates $ 20,118 $ 19,242
Schedule of Related Party Notes	We had the following balances with the Utility Money Pool (in thousands) as of: September 30, 2015 December 31, 2014 Money pool notes receivable, net $ 64,820 $ 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 September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Net interest income (expense) $ 309 $ (3 ) $ 855 $ 81
Schedule of Revenues and Purchases from Related Parties	Other related party activity was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Revenue: Energy sold to Cheyenne Light $ 553 $ 391 $ 1,258 $ 1,467 Rent from electric properties $ 1,158 $ 1,126 $ 3,614 $ 3,200 Fuel and purchased power : Purchases of coal from WRDC $ 4,580 $ 4,854 $ 12,724 $ 13,886 Purchase of excess energy from Cheyenne Light $ 111 $ 1,117 $ 800 $ 2,330 Purchase of renewable wind energy from Cheyenne Light - Happy Jack $ 268 $ 264 $ 1,097 $ 1,393 Purchase of renewable wind energy from Cheyenne Light - Silver Sage $ 476 $ 430 $ 1,910 $ 2,274 Gas transportation service agreement: Gas transportation service agreement with Cheyenne Light for firm and interruptible gas transportation $ 103 $ — $ 310 $ — Corporate support: Corporate support services and fees from Parent, Black Hills Service Company and Black Hills Utility Holdings $ 6,213 $ 6,274 $ 19,873 $ 20,433

Employee Benefit Plans_ Employe

Employee Benefit Plans: Employee Benefit Plans (Tables)	9 Months Ended
	Sep. 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 September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Service cost $ 199 $ 176 $ 597 $ 528 Interest cost 739 748 2,217 2,244 Expected return on plan assets (984 ) (925 ) (2,952 ) (2,776 ) Prior service cost 11 11 33 32 Net loss (gain) 549 235 1,647 705 Net periodic benefit cost $ 514 $ 245 $ 1,542 $ 733 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 September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Service cost $ 59 $ 56 $ 176 $ 168 Interest cost 53 60 160 180 Prior service cost (benefit) (84 ) (84 ) (252 ) (252 ) Net periodic benefit cost $ 28 $ 32 $ 84 $ 96 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 September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Interest cost $ 35 $ 36 $ 107 $ 109 Net loss (gain) 23 11 69 33 Net periodic benefit cost $ 58 $ 47 $ 176 $ 142
Schedule of Defined Benefit Plans Contributions	Contributions and anticipated contributions are as follows (in thousands): Contributions Nine Months Ended September 30, 2015 Remaining Anticipated Contributions for 2015 Anticipated Contributions for 2016 Defined Benefit Pension Plan $ — $ — $ 1,657 Defined Benefit Postretirement Healthcare Plan $ 390 $ 130 $ 577 Supplemental Non-qualified Defined Benefit Plans $ 163 $ 54 $ 184

Fair Value of Financial Instr19

Fair Value of Financial Instruments: Fair Value of Financial Instruments(Tables)	9 Months Ended
	Sep. 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: September 30, 2015 December 31, 2014 Carrying Amount Fair Value Carrying Amount Fair Value Cash and cash equivalents (a) $ 30,076 $ 30,076 $ 6,620 $ 6,620 Long-term debt, including current maturities (b) $ 342,755 $ 412,707 $ 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)	9 Months Ended
	Sep. 30, 2015
Supplemental Cash Flow Information [Abstract]
Schedule of Cash Flow, Supplemental Disclosures	Nine months ended September 30, 2015 2014 (in thousands) Non-cash investing and financing activities - Property, plant and equipment acquired with accrued liabilities $ 2,074 $ 9,534 Non-cash (decrease) to money pool notes receivable, net $ (18,500 ) $ — Non-cash dividend to Parent $ 18,500 $ — Cash (paid) refunded during the period for - Interest (net of amounts capitalized) $ (14,192 ) $ (13,301 ) Income taxes, net $ — $ —

Accounts Receivable and Allow21

Accounts Receivable and Allowance For Doubtful Accounts: Accounts Receivable and Allowance For Doubtful Accounts (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Accounts Receivable [Line Items]
Allowance for doubtful accounts	$ (206)	$ (261)
Receivables - customers, net	25,858	34,684
Billed Revenues [Member]
Accounts Receivable [Line Items]
Accounts receivable, trade	14,698	24,946
Unbilled Revenues [Member]
Accounts Receivable [Line Items]
Accounts receivable, trade	$ 11,366	$ 9,999

Regulatory Accounting_ Regula22

Regulatory Accounting: Regulatory Accounting (Details) - USD ($) $ in Thousands		9 Months Ended
		Sep. 30, 2015	Dec. 31, 2014
Schedule of Regulatory Assets and Liabilities [Line Items]
Regulatory Assets		$ 85,268	$ 78,684
Regulatory Liabilities		$ 52,966	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]	$ 37,325	35,510
Employee benefit plans [Member]
Schedule of Regulatory Assets and Liabilities [Line Items]
Regulatory Liabilities Amortization Period, Unclassified		12 years
Regulatory Liabilities	[2]	$ 14,538	14,538
Other regulatory liabilities [Member]
Schedule of Regulatory Assets and Liabilities [Line Items]
Regulatory Liabilities Amortization Period, Unclassified		13 years
Regulatory Liabilities		$ 1,103	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]	$ 2,165	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]	$ 8,463	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]	$ 17,764	14,696
Flow through accounting [Member]
Schedule of Regulatory Assets and Liabilities [Line Items]
Regulatory Assets Amortization Period, Unclassified		35 years
Regulatory Assets	[1]	$ 11,622	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]	$ 13,304	11,786
Other regulatory assets [Member]
Schedule of Regulatory Assets and Liabilities [Line Items]
Regulatory Assets Amortization Period, Unclassified		10 years
Regulatory Assets		$ 7,532	$ 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 $13 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		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Related Party Transaction [Line Items]
Receivables - affiliates	$ 8,499		$ 8,499		$ 5,350
Accounts payable - affiliates	20,118		$ 20,118		19,242
Related Party Transaction, Utility Money Pool Interest Rate			1.39%
Money pool notes receivable, net	64,820		$ 64,820		$ 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]
Net interest income (expense)	309	$ (3)	$ 855	$ 81
Subsidiary of Common Parent [Member] | Allocated Costs From Related Parties [Member]
Related Party Transaction [Line Items]
Costs and expenses, related parties	6,213	6,274	19,873	20,433
Subsidiary of Common Parent [Member] | Purchase Of Natural Gas, Cheyenne Light [Member]
Related Party Transaction [Line Items]
Costs and expenses, related parties	103	0	310	0
Subsidiary of Common Parent [Member] | Coal, Purchased [Member]
Related Party Transaction [Line Items]
Costs and expenses, related parties	4,580	4,854	12,724	13,886
Subsidiary of Common Parent [Member] | Purchase of Excess Energy, Cheyenne Light [Member]
Related Party Transaction [Line Items]
Costs and expenses, related parties	111	1,117	800	2,330
Subsidiary of Common Parent [Member] | Happy Jack Wind Purchase Power Agreeement [Member]
Related Party Transaction [Line Items]
Costs and expenses, related parties	268	264	1,097	1,393
Subsidiary of Common Parent [Member] | Silver Sage Wind Power Purchase Agreement [Member]
Related Party Transaction [Line Items]
Costs and expenses, related parties	476	430	1,910	2,274
Subsidiary of Common Parent [Member] | Energy sold to Cheyenne Light [Member]
Related Party Transaction [Line Items]
Revenue from related parties	553	391	1,258	1,467
Subsidiary of Common Parent [Member] | Lease Agreements [Member]
Related Party Transaction [Line Items]
Revenue from related parties	$ 1,158	$ 1,126	$ 3,614	$ 3,200

Employee Benefit Plans_ Emplo24

Employee Benefit Plans: Employee Benefit Plans (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Defined Benefit Pension Plan
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract]
Service cost	$ 199	$ 176	$ 597	$ 528
Interest cost	739	748	2,217	2,244
Expected return on plan assets	(984)	(925)	(2,952)	(2,776)
Prior service cost (benefit)	11	11	33	32
Net loss (gain)	549	235	1,647	705
Net periodic benefit cost	514	245	1,542	733
Pension and Other Postretirement Benefit Contributions [Abstract]
Contributions made by Employer			0
Remaining Anticipated Contributions for Current Year			0
Anticipated Contributions for Next Year			1,657
Defined Benefit Postretirement Healthcare Plan
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract]
Service cost	59	56	176	168
Interest cost	53	60	160	180
Prior service cost (benefit)	(84)	(84)	(252)	(252)
Net periodic benefit cost	28	32	84	96
Pension and Other Postretirement Benefit Contributions [Abstract]
Contributions made by Employer			390
Remaining Anticipated Contributions for Current Year			130
Anticipated Contributions for Next Year			577
Supplemental Non-qualified Defined Benefit Plans
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract]
Interest cost	35	36	107	109
Net loss (gain)	23	11	69	33
Net periodic benefit cost	$ 58	$ 47	176	$ 142
Pension and Other Postretirement Benefit Contributions [Abstract]
Contributions made by Employer			163
Remaining Anticipated Contributions for Current Year			54
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		Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014	Dec. 31, 2013
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents, carrying amount		$ 30,076	$ 6,620	$ 4,641	$ 2,259
Carrying Amount [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents, carrying amount	[1]	30,076	6,620
Long-term debt, including current maturities, carrying amount	[2]	342,755	342,752
Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents, fair value	[1]	30,076	6,620
Long-term debt, including current maturities, fair value	[2]	$ 412,707	$ 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	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Noncash Investing and Financing Items [Abstract]
Property, plant and equipment acquired with accrued liabilities	$ 2,074	$ 9,534
Interest and Income Taxes Paid Net [Abstract]
Interest paid, (net of amounts capitalized)	(14,192)	(13,301)
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	(18,500)	0
Parent [Member]
Noncash Investing and Financing Items [Abstract]
Non-cash dividend to Parent	$ 18,500	$ 0

Commitment and Contingencies_ O

Commitment and Contingencies: Oil Creek Fire (Details) - Loss from Catastrophes [Member] - Oil Creek Fire [Member] - Pending Litigation [Member] $ in Millions	9 Months Ended
	Sep. 30, 2015USD ($)
Maximum [Member]
Loss Contingencies [Line Items]
Loss Contingency, Damages Sought, Value	$ 55
Minimum [Member]
Loss Contingencies [Line Items]
Insurance Coverage Deductible Per Occurrence	$ 1