Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 30, 2018shares | |
Document and Entity Information | |
Entity Registrant Name | Tri-State Generation & Transmission Association, Inc. |
Entity Central Index Key | 1,637,880 |
Document Type | 10-Q |
Document Period End Date | Sep. 30, 2018 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Document Fiscal Period Focus | Q3 |
Document Fiscal Year Focus | 2,018 |
Entity Common Stock, Shares Outstanding | 0 |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Electric plant | ||
In service | $ 5,869,636 | $ 5,802,844 |
Construction work in progress | 191,965 | 175,567 |
Total electric plant | 6,061,601 | 5,978,411 |
Less allowances for depreciation and amortization | (2,481,954) | (2,409,020) |
Net electric plant | 3,579,647 | 3,569,391 |
Other plant | 360,981 | 283,546 |
Less allowances for depreciation, amortization and depletion | (110,549) | (105,660) |
Net other plant | 250,432 | 177,886 |
Total property, plant and equipment | 3,830,079 | 3,747,277 |
Other assets and investments | ||
Investments in other associations | 144,858 | 143,608 |
Investments in and advances to coal mines | 18,963 | 18,274 |
Restricted cash and investments | 5,925 | 5,979 |
Intangible assets, net of accumulated amortization | 5,493 | 10,986 |
Other noncurrent assets | 9,715 | 9,604 |
Total other assets and investments | 184,954 | 188,451 |
Current assets | ||
Cash and cash equivalents | 119,619 | 143,694 |
Restricted cash and investments | 134 | 1,292 |
Deposits and advances | 38,001 | 27,881 |
Accounts receivable—Members | 105,802 | 102,035 |
Other accounts receivable | 31,473 | 16,034 |
Coal inventory | 74,842 | 46,849 |
Materials and supplies | 92,064 | 89,459 |
Total current assets | 461,935 | 427,244 |
Deferred charges | ||
Regulatory assets | 438,207 | 454,523 |
Prepayment—NRECA Retirement Security Plan | 33,280 | 37,607 |
Other | 48,200 | 38,492 |
Total deferred charges | 519,687 | 530,622 |
Total assets | 4,996,655 | 4,893,594 |
Capitalization | ||
Patronage capital equity | 1,061,890 | 1,003,020 |
Accumulated other comprehensive income (loss) | (428) | (210) |
Noncontrolling interest | 109,336 | 111,295 |
Total equity | 1,170,798 | 1,114,105 |
Long-term debt | 3,086,601 | 3,120,286 |
Total capitalization | 4,257,399 | 4,234,391 |
Current liabilities | ||
Member advances | 11,290 | 8,447 |
Accounts payable | 102,540 | 117,510 |
Short-term borrowings | 206,197 | 144,667 |
Accrued expenses | 28,235 | 32,484 |
Current asset retirement obligations | 1,144 | 3,087 |
Accrued interest | 50,549 | 32,852 |
Accrued property taxes | 27,820 | 27,137 |
Current maturities of long-term debt | 97,601 | 78,004 |
Total current liabilities | 525,376 | 444,188 |
Deferred credits and other liabilities | ||
Regulatory liabilities | 89,872 | 81,824 |
Deferred income tax liability | 15,227 | 17,205 |
Asset retirement obligations | 47,901 | 53,768 |
Other | 51,700 | 53,396 |
Total deferred credits and other liabilities | 204,700 | 206,193 |
Accumulated postretirement benefit and postemployment obligations | 9,180 | 8,822 |
Total equity and liabilities | $ 4,996,655 | $ 4,893,594 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Operating revenues | ||||
Other | $ 13,666 | $ 24,355 | $ 38,337 | $ 66,540 |
Operating revenues | 398,157 | 396,511 | 1,044,178 | 1,073,841 |
Operating expenses | ||||
Purchased power | 106,166 | 100,547 | 271,187 | 259,322 |
Fuel | 67,840 | 68,337 | 168,081 | 187,658 |
Production | 52,558 | 46,756 | 165,750 | 157,405 |
Transmission | 40,291 | 38,752 | 122,255 | 113,038 |
General and administrative | 6,398 | 7,326 | 22,923 | 19,347 |
Depreciation, amortization and depletion | 38,977 | 43,332 | 118,620 | 131,094 |
Coal mining | 637 | 12,330 | 637 | 30,090 |
Other | 3,897 | 4,185 | 11,317 | 12,953 |
Operating expenses | 316,764 | 321,565 | 880,770 | 910,907 |
Operating margins | 81,393 | 74,946 | 163,408 | 162,934 |
Other income (expense) | ||||
Interest | 1,323 | 1,177 | 3,762 | 3,397 |
Capital credits from cooperatives | 1,272 | 1,323 | 5,472 | 5,720 |
Membership withdrawal | 5,000 | |||
Other, net | 1,466 | 1,118 | 3,609 | 2,547 |
Total other income | 4,061 | 3,618 | 12,843 | 16,664 |
Interest expense, net of amounts capitalized | 38,377 | 37,289 | 115,380 | 109,937 |
Income tax benefit | (151) | (259) | (453) | (863) |
Net margins including noncontrolling interest | 47,228 | 41,534 | 61,324 | 70,524 |
Net income attributable to noncontrolling interest | (830) | (736) | (2,454) | (1,409) |
Net margins attributable to the Association | 46,398 | 40,798 | 58,870 | 69,115 |
Member electric sales | ||||
Operating revenues | ||||
Operating revenues | 353,487 | 346,802 | 942,916 | 921,476 |
Non-member electric sales | ||||
Operating revenues | ||||
Operating revenues | $ 31,004 | $ 25,354 | $ 62,925 | $ 85,825 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Consolidated Statements of Comprehensive Income | ||||
Net margins including noncontrolling interest | $ 47,228 | $ 41,534 | $ 61,324 | $ 70,524 |
Other comprehensive income (loss): | ||||
Unrealized gain on securities available for sale | 48 | 94 | ||
Reclassification of unrealized gain on securities available for sale included in net income | (159) | |||
Amortization of actuarial gain on postretirement benefit obligation included in net income | (20) | (20) | (59) | (59) |
Other comprehensive income (loss) | (20) | 28 | (218) | 35 |
Comprehensive income including noncontrolling interest | 47,208 | 41,562 | 61,106 | 70,559 |
Net comprehensive income attributable to noncontrolling interest | (830) | (736) | (2,454) | (1,409) |
Comprehensive income attributable to the Association | $ 46,378 | $ 40,826 | $ 58,652 | $ 69,150 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Patronage capital | Accumulated other comprehensive income (loss) | Noncontrolling interest | Total |
Equity at beginning of period at Dec. 31, 2016 | $ 961,364 | $ (286) | $ 109,147 | |
Change in Equity | ||||
Net margins attributable to the Association | 69,115 | $ 69,115 | ||
Unrealized gain on securities available for sale | 94 | |||
Reclassification adjustment for actuarial gain on postretirement benefit obligation included in net income | (59) | |||
Net comprehensive income attributable to noncontrolling interest | 1,409 | 1,409 | ||
Equity at end of period at Sep. 30, 2017 | 1,030,479 | (251) | 110,556 | 1,140,784 |
Equity at beginning of period at Jun. 30, 2017 | 989,681 | (279) | 109,820 | |
Change in Equity | ||||
Net margins attributable to the Association | 40,798 | 40,798 | ||
Unrealized gain on securities available for sale | 48 | |||
Reclassification adjustment for actuarial gain on postretirement benefit obligation included in net income | (20) | |||
Net comprehensive income attributable to noncontrolling interest | 736 | 736 | ||
Equity at end of period at Sep. 30, 2017 | 1,030,479 | (251) | 110,556 | 1,140,784 |
Equity at beginning of period at Dec. 31, 2017 | 1,003,020 | (210) | 111,295 | 1,114,105 |
Change in Equity | ||||
Net margins attributable to the Association | 58,870 | 58,870 | ||
Reclassification adjustment for unrealized gain on securities available for sale included in net income | (159) | |||
Reclassification adjustment for actuarial gain on postretirement benefit obligation included in net income | (59) | |||
Net comprehensive income attributable to noncontrolling interest | 2,454 | 2,454 | ||
Equity distribution to noncontrolling interest | (4,413) | |||
Equity at end of period at Sep. 30, 2018 | 1,061,890 | (428) | 109,336 | 1,170,798 |
Equity at beginning of period at Jun. 30, 2018 | 1,015,492 | (408) | 110,061 | |
Change in Equity | ||||
Net margins attributable to the Association | 46,398 | 46,398 | ||
Reclassification adjustment for actuarial gain on postretirement benefit obligation included in net income | (20) | |||
Net comprehensive income attributable to noncontrolling interest | 830 | 830 | ||
Equity distribution to noncontrolling interest | (1,555) | |||
Equity at end of period at Sep. 30, 2018 | $ 1,061,890 | $ (428) | $ 109,336 | $ 1,170,798 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Operating activities | ||
Net margins including noncontrolling interest | $ 61,324 | $ 70,524 |
Adjustments to reconcile net margins to net cash provided by operating activities: | ||
Depreciation, amortization and depletion | 118,620 | 131,094 |
Amortization of intangible asset | 5,493 | 5,493 |
Amortization of NRECA Retirement Security Plan prepayment | 4,029 | 4,029 |
Amortization of debt issuance costs | 2,210 | 1,479 |
Impairment loss - Holcomb expansion | 93,494 | |
Deferred Holcomb expansion impairment loss | (93,494) | |
Recognition of deferred membership withdrawal income | (5,000) | |
Recognition of deferred revenue | (15,000) | |
Capital credit allocations from cooperatives and income from coal mines over refund distributions | (1,493) | (1,892) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (18,721) | (5,754) |
Coal inventory | (27,040) | 15,689 |
Materials and supplies | (1,854) | (177) |
Accounts payable and accrued expenses | (8,734) | (7,973) |
Accrued interest | 17,696 | 16,494 |
Accrued property taxes | 684 | (2,467) |
Other deferred credits - TEP transmission settlement | (15,521) | |
Other | (13,791) | (9,258) |
Net cash provided by operating activities | 138,423 | 181,760 |
Investing activities | ||
Purchases of plant | (199,261) | (159,656) |
Changes in deferred charges | (1,547) | (239) |
Proceeds from other investments | 64 | 61 |
Net cash used in investing activities | (200,744) | (159,834) |
Financing activities | ||
Changes in Member advances | 257 | (4,590) |
Payments of long-term debt | (73,943) | (103,138) |
Proceeds from issuance of debt | 60,000 | |
Increase in short-term borrowings, net | 61,530 | 55,181 |
Retirement of patronage capital | (4,852) | (3,023) |
Equity distribution to noncontrolling interest | (4,413) | |
Other | (1,545) | (163) |
Net cash provided by (used in) financing activities | 37,034 | (55,733) |
Net decrease in cash, cash equivalents and restricted cash and investments | (25,287) | (33,807) |
Cash, cash equivalents and restricted cash and investments – beginning | 150,965 | 167,890 |
Cash, cash equivalents and restricted cash and investments – ending | 125,678 | 134,083 |
Supplemental cash flow information: | ||
Cash paid for interest | 102,916 | 101,965 |
Supplemental disclosure of noncash investing and financing activities: | ||
Change in plant expenditures included in accounts payable | $ 67 | $ (3,287) |
PRESENTATION OF FINANCIAL INFOR
PRESENTATION OF FINANCIAL INFORMATION | 9 Months Ended |
Sep. 30, 2018 | |
PRESENTATION OF FINANCIAL INFORMATION | |
PRESENTATION OF FINANCIAL INFORMATION | NOTE 1 – PRESENTATION OF FINANCIAL INFORMATION The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. These unaudited consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in our annual report on Form 10-K for the year ended December 31, 2017 filed with the SEC. In the opinion of management, all adjustments, consisting of normal recurring accruals considered necessary for a fair presentation, have been included. Our consolidated financial position as of September 30, 2018, results of operations for the three and nine months ended September 30, 2018 and 2017, and cash flows for the nine months ended September 30, 2018 and 2017 are not necessarily indicative of the results that may be expected for an entire year or any other period. Basis of Consolidation Our consolidated financial statements include the accounts of Tri-State Generation and Transmission Association, Inc. (“Tri-State”, “we”, “our”, “us” or “the Association”), our wholly-owned and majority-owned subsidiaries, and certain variable interest entities for which we or our subsidiaries are the primary beneficiaries. See Note 16 – Variable Interest Entities. Our consolidated financial statements also include our undivided interests in jointly owned facilities. All significant intercompany balances and transactions have been eliminated in consolidation. Jointly Owned Facilities We own undivided interests in two jointly owned generation facilities that are operated by the operating agent of each facility under joint facility ownership agreements with other utilities as tenants in common. These projects include the Yampa Project (operated by us) and the Missouri Basin Power Project (“MBPP”) (operated by Basin Electric Power Cooperative (“Basin”)). Our ownership in the San Juan Project terminated December 31, 2017. Each participant in these agreements receives a portion of the total output of the generation facilities, which approximates its percentage ownership. Each participant provides its own financing for its share of each facility and accounts for its share of the cost of each facility. The operating agent for each of these projects allocates the fuel and operating expenses to each participant based upon its share of the use of the facility. Therefore, our share of the plant asset cost, interest, depreciation and other operating expenses is included in our consolidated financial statements. Effective as of July 1, 2018, our ownership share in MBPP increased to 27.13 percent due to our acquisition of Heartland Consumers Power District’s 3.0 percent ownership share in MBPP. Our share in each jointly owned facility is as follows as of September 30, 2018 (dollars in thousands): Electric Construction Tri-State Plant in Accumulated Work In Share Service Depreciation Progress Yampa Project - Craig Generating Station Units 1 and 2 24.00 % $ 391,924 $ 237,934 $ 4,360 MBPP - Laramie River Station 27.13 % 420,762 297,335 49,863 Total $ 812,686 $ 535,269 $ 54,223 Reclassifications Certain reclassifications have been made to our prior year financial statements to conform to the 2018 presentation. Accounting Pronouncements-Not Yet Adopted In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) (“Topic 842”). Topic 842 supersedes the lease recognition requirements in Accounting Standards Codification (“ASC”) 840, Leases. Under Topic 842, a lessee is required to recognize lease assets (right-of-use assets) and lease liabilities on the balance sheet for most leases and provide enhanced qualitative and quantitative disclosures. The right-of-use asset represents a lessee’s right to use (control the use of) the underlying asset for the lease term. The lease liability represents a lessee’s obligation to make lease payments. The right-of-use asset and the lease liability are initially measured at the present value of the lease payments over the lease term. For finance leases, the lessee subsequently recognizes interest expense and amortization of the right-of-use asset, similar to accounting for capital leases under Topic 840. For operating leases, the lessee subsequently recognizes straight-line lease expense over the life of the lease, similar to accounting for operating leases under Topic 840. Lessor accounting remains substantially the same as that applied under Topic 840. Topic 842 includes an accounting policy election by class of underlying asset to exclude short-term leases. A short-term lease is defined as a lease that, at commencement date, has a lease term of 12 months or less and does not include an option to purchase the underlying asset that the lessee is reasonably certain to exercise. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. This amendment is required to be applied using a modified retrospective transition method with the option to elect a package of practical expedients which includes not being required to reassess expired or existing contracts that were assessed under Topic 840, the lease classification for any expired or existing leases that were assessed under Topic 840, and accounting for the initial direct costs for any existing leases. We are currently evaluating the impact of Topic 842 on our consolidated financial statements. We have established a lease project working group and have selected a lease software solution. We are identifying and reviewing our leases and performing a completeness assessment of the lease population. We will adopt ASU 2016-02 beginning in the first quarter of 2019, including our election to adopt the package of practical expedients. We anticipate that the adoption of the amendment may have a significant impact on our consolidated statements of financial position as applicable leases will be recognized as right-of-use assets and lease obligations. In January 2018, the FASB issued ASU 2018-01, Leases (Topic 842)-Land Easement Practical Expedient for Transition to Topic 842 . This amendment permits an entity to elect an optional transition practical expedient to not evaluate, under Topic 842, land easements that exist or that expired before the entity’s adoption of Topic 842. Once an entity adopts Topic 842, the new guidance should be applied prospectively to all new (or modified) land easements to determine whether the arrangement should be accounted for as a lease. We will adopt this optional transition practical expedient upon adoption of ASU 2016-02. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements . This amendment provides entities with an additional (and optional) transition method to adopt Topic 842. Under this new transition method, an entity recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. An entity’s reporting for the comparative periods presented in the financial statements in which it adopts Topic 842 will continue to be in accordance with current GAAP (Topic 840, Leases ). This amendment also provides lessors with a practical expedient, by class of underlying asset, to not separate non-lease components from the associated lease component if certain conditions are met. Both the optional transition method and lessor practical expedient are effective upon the same adoption date of Topic 842. We will adopt the optional transition method upon adoption of ASU 2016-02. We are currently evaluating the impact of the lessor practical expedient on our consolidated financial statements. |
ACCOUNTING FOR RATE REGULATION
ACCOUNTING FOR RATE REGULATION | 9 Months Ended |
Sep. 30, 2018 | |
ACCOUNTING FOR RATE REGULATION | |
ACCOUNTING FOR RATE REGULATION | NOTE 2 – ACCOUNTING FOR RATE REGULATION We are subject to the accounting requirements related to regulated operations. In accordance with these accounting requirements, some revenues and expenses have been deferred at the discretion of our Board of Directors (“Board”), which has budgetary and rate-setting authority, if it is probable that these amounts will be refunded or recovered through future rates. Regulatory assets are costs that we expect to recover from our member distribution systems (“Members”) based on rates approved by our Board in accordance with our rate policy. Regulatory liabilities represent probable future reductions in rates associated with amounts that are expected to be refunded to our Members based on rates approved by our Board in accordance with our rate policy. We recognize regulatory assets as expenses and regulatory liabilities as operating revenue, other income, or a reduction in expense concurrent with their recovery in rates. Regulatory assets and liabilities are as follows (dollars in thousands): September 30, December 31, 2018 2017 Regulatory assets Deferred income tax expense (1) $ 15,227 $ 17,205 Deferred prepaid lease expense – Craig Unit 3 Lease (2) — 3,237 Deferred prepaid lease expense – Springerville Unit 3 Lease (3) 86,578 88,296 Goodwill – J.M. Shafer (4) 52,706 54,843 Goodwill – Colowyo Coal (5) 38,486 39,261 Deferred debt prepayment transaction costs (6) 151,716 158,187 Deferred Holcomb expansion impairment loss (7) 93,494 93,494 Total regulatory assets 438,207 454,523 Regulatory liabilities Interest rate swap - unrealized gain (8) 12,641 4,311 Interest rate swap - realized gain (9) 4,332 4,614 Deferred revenues (10) 30,327 30,327 Membership withdrawal (11) 42,572 42,572 Total regulatory liabilities 89,872 81,824 Net regulatory asset $ 348,335 $ 372,699 (1) A regulatory asset or liability associated with deferred income taxes generally represents the future increase or decrease in income taxes payable that will be received or settled through future rate revenues. (2) Represented deferral of the loss on acquisition related to the Craig Generating Station Unit 3 prepaid lease expense upon acquisitions of equity interests in 2002 and 2006. The regulatory asset for the deferred prepaid lease expense was amortized to depreciation, amortization and depletion expense in the amount of $6.5 million annually through December 31, 2017. The remaining $3.2 million was amortized to depreciation, amortization and depletion expense for the six month period ending June 30, 2018 and recovered from our Members in rates. (3) Represents deferral of the loss on acquisition related to the Springerville Generating Station Unit 3 (“Springerville Unit 3”) prepaid lease expense upon acquiring a controlling interest in the Springerville Unit 3 Partnership LP (“Springerville Partnership”) in 2009. The regulatory asset for the deferred prepaid lease expense is being amortized to depreciation, amortization and depletion expense in the amount of $2.3 million annually through the 47-year period ending in 2056 and recovered from our Members in rates. (4) Represents goodwill related to our acquisition of Thermo Cogeneration Partnership, LP in December 2011. Goodwill is being amortized to depreciation, amortization and depletion expense in the amount of $2.8 million annually through the 25-year period ending in 2036 and recovered from our Members in rates. (5) Represents goodwill related to our acquisition of Colowyo Coal Company LP (“Colowyo Coal”) in December 2011. Goodwill is being amortized to depreciation, amortization and depletion expense in the amount of $1.0 million annually through the 44-year period ending in 2056 and recovered from our Members in rates. (6) Represents transaction costs that we incurred related to the prepayment of our long-term debt in 2014. These costs are being amortized to depreciation, amortization and depletion expense in the amount of $8.6 million annually over the 21-year period ending in 2035 and recovered from our Members in rates. (7) Represents deferral of the impairment loss related to development costs, including costs for the option to purchase development rights for the expansion of the Holcomb Generating Station. The plan for the recovery from our Members in rates has not been determined by our Board. Once the plan for recovery is determined, the deferred impairment loss will be recognized in other operating expenses. (8) Represents deferral of an unrealized gain related to the change in fair value of a forward starting interest rate swap that was entered into in 2016 in order to hedge interest rates on anticipated future borrowings. Upon settlement of this interest rate swap, the realized gain or loss will be deferred and subsequently recognized as interest expense when amortized over the term of the associated long-term debt borrowing. See Note 8 – Long-Term Debt. (9) Represents deferral of a realized gain of $4.6 million related to the October 2017 settlement of a forward starting interest rate swap that was entered into in 2016. This realized gain was deferred as a regulatory liability and is being amortized to interest expense over the 12-year term of the First Mortgage Obligations, Series 2017A. (10) Represents deferral of the recognition of non-member electric sales revenues. These deferred non-member electric sales revenues will be refunded to Members through reduced rates when recognized in non-member electric sales revenue in future periods. (11) Represents the deferral of the recognition of other income recorded in connection with the withdrawal of a former Member from membership in us. This deferred membership withdrawal income will be refunded to Members through reduced rates when recognized in other income in future periods. |
INVESTMENTS IN OTHER ASSOCIATIO
INVESTMENTS IN OTHER ASSOCIATIONS | 9 Months Ended |
Sep. 30, 2018 | |
INVESTMENTS IN OTHER ASSOCIATIONS | |
INVESTMENTS IN OTHER ASSOCIATIONS | NOTE 3 – INVESTMENTS IN OTHER ASSOCIATIONS Investments in other associations include investments in the patronage capital of other cooperatives and other required investments in the organizations. Our investment in a cooperative increases when a cooperative allocates patronage capital credits to us and it decreases when we receive a cash retirement of the allocated capital credits from the cooperative. A cooperative allocates its patronage capital credits to us based upon our patronage (amount of business done) with the cooperative. Investments in other associations are as follows (dollars in thousands): September 30, December 31, 2018 2017 Basin Electric Power Cooperative $ 101,820 $ 101,820 National Rural Utilities Cooperative Finance Corporation - patronage capital 11,704 11,232 National Rural Utilities Cooperative Finance Corporation - capital term certificates 16,021 16,085 CoBank, ACB 8,671 8,174 Western Fuels Association, Inc. 2,400 2,346 Other 4,242 3,951 Investments in other associations $ 144,858 $ 143,608 Our investments in other associations are considered equity securities without readily determinable fair values, and as such are measured at cost minus impairment. We have evaluated these investments for indicators of impairment. There were no impairments of these investments recognized during the nine months ended September 30, 2018 or 2017. |
INVESTMENTS IN AND ADVANCES TO
INVESTMENTS IN AND ADVANCES TO COAL MINES | 9 Months Ended |
Sep. 30, 2018 | |
INVESTMENTS IN AND ADVANCES TO COAL MINES | |
INVESTMENTS IN AND ADVANCES TO COAL MINES | NOTE 4 – INVESTMENTS IN AND ADVANCES TO COAL MINES We have direct ownership and investments in coal mines to support our coal generating resources. We, and certain participants in the Yampa Project, are members of Trapper Mining, which is organized as a cooperative and is the owner and operator of the Trapper Mine near Craig, Colorado. Our investment in Trapper Mining is recorded using the equity method. In addition, we have ownership in Western Fuels Association, Inc. (“WFA”), which is an owner of Western Fuels‑Wyoming, Inc. (“WFW”), the owner and operator of the Dry Fork Mine near Gillette, Wyoming. Dry Fork Mine provides coal to MBPP, which is the owner of Laramie River Generating Station. We, through our undivided interest in the jointly owned facility MBPP, advance funds to the Dry Fork Mine. Investments in and advances to coal mines are as follows (dollars in thousands): September 30, December 31, 2018 2017 Investment in Trapper Mine $ 15,217 $ 14,998 Advances to Dry Fork Mine 3,746 3,276 Investments in and advances to coal mines $ 18,963 $ 18,274 |
CASH, CASH EQUIVALENTS AND REST
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AND INVESTMENTS | 9 Months Ended |
Sep. 30, 2018 | |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AND INVESTMENTS | |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AND INVESTMENTS | NOTE 5 – CASH, CASH EQUIVALENTS AND RESTRICTED CASH AND INVESTMENTS We consider highly liquid investments with an original maturity of three months or less to be cash equivalents. The fair value of cash equivalents approximates their carrying values due to their short-term maturity. Restricted cash and investments represent funds designated by our Board for specific uses and funds restricted by contract or other legal reasons. A portion of the funds are funds that have been restricted by contract that are expected to be settled within one year. These funds are therefore classified as current on our consolidated statements of financial position. The other funds are for funds restricted by contract or other legal reasons that are expected to be settled beyond one year. These funds are classified as noncurrent and are included in other assets and investments on our consolidated statements of financial position. The following table provides a reconciliation of cash, cash equivalents and restricted cash and investments reported within our consolidated statements of financial position that sum to the total of the same such amount shown in our consolidated statements of cash flows (dollars in thousands): September 30, December 31, 2018 2017 Cash and cash equivalents $ 119,619 $ 143,694 Restricted cash and investments - current 134 1,292 Restricted cash and investments - noncurrent 5,925 5,979 Cash, cash equivalents and restricted cash and investments $ 125,678 $ 150,965 |
CONTRACT ASSETS AND CONTRACT LI
CONTRACT ASSETS AND CONTRACT LIABILITIES | 9 Months Ended |
Sep. 30, 2018 | |
CONTRACT ASSETS AND CONTRACT LIABILITIES | |
CONTRACT ASSETS AND CONTRACT LIABILITIES | NOTE 6 – CONTRACT ASSETS AND CONTRACT LIABILITIES Contract Assets A contract asset represents an entity’s right to consideration in exchange for goods or services that the entity has transferred to a customer when that right is conditioned on something other than the passage of time (for example, the entity’s future performance). We have no contract assets as of September 30, 2018. Accounts Receivable We record accounts receivable for our unconditional rights to consideration arising from our performance under contracts with our Members and other parties. Uncollectible amounts, if any, are identified on a specific basis and charged to expense in the period determined to be uncollectible. See Note 13 – Revenue. Contract liabilities (unearned revenue) A contract liability represents an entity’s obligation to transfer goods or services to a customer for which the entity has received consideration (or the amount is due) from the customer. We have received deposits from others and these deposits are reflected in unearned revenue (included in other deferred credits and other liabilities on our consolidated statements of financial position) before revenue is recognized, resulting in contract liabilities. During the nine months ended September 30, 2018, we recognized $0.6 million of this unearned revenue in other operating revenues on our consolidated statements of operations. Our contract assets and liabilities consist of the following (dollars in thousands): September 30, December 31, 2018 2017 Accounts receivable - Members $ 105,802 $ 102,035 Other accounts receivable - trade: Non-member electric sales 8,796 5,493 Coal sales - 1,446 Other 15,497 6,634 Total other accounts receivable - trade 24,293 13,573 Other accounts receivable - nontrade 7,180 2,461 Total other accounts receivable $ 31,473 $ 16,034 Contract liabilities (unearned revenue) $ 8,122 $ 7,567 |
OTHER DEFERRED CHARGES
OTHER DEFERRED CHARGES | 9 Months Ended |
Sep. 30, 2018 | |
OTHER DEFERRED CHARGES. | |
OTHER DEFERRED CHARGES | NOTE 7 – OTHER DEFERRED CHARGES We make expenditures for preliminary surveys and investigations for the purpose of determining the feasibility of contemplated generation and transmission projects. If construction results, the preliminary survey and investigation expenditures will be reclassified to electric plant ‑ construction work in progress. If the work is abandoned, the related preliminary survey and investigation expenditures will be charged to the appropriate operating expense account or the expense could be deferred as a regulatory asset to be recovered from our Members in rates subject to approval by our Board, which has budgetary and rate-setting authority. We make advance payments to the operating agents of jointly owned facilities to fund our share of costs expected to be incurred under each project including MBPP – Laramie River Station, and Yampa Project – Craig Generating Station Units 1 and 2. We also make advance payments to the operating agent of Springerville Unit 3. We have entered into a forward starting interest rate swap to hedge a portion of our future long-term debt interest rate exposure. The unrealized gain on this interest rate swap of $12.6 and $4.3 million as of September 30, 2018 and December 31, 2017, respectively, was deferred in accordance with the accounting requirements related to regulated operations. See Note 2 – Accounting for Rate Regulation. Other deferred charges are as follows (dollars in thousands): September 30, December 31, 2018 2017 Preliminary surveys and investigations $ 20,254 $ 19,737 Advances to operating agents of jointly owned facilities 12,620 10,740 Interest rate swap 12,641 4,311 Other 2,685 3,704 Total other deferred charges $ 48,200 $ 38,492 |
LONG-TERM DEBT
LONG-TERM DEBT | 9 Months Ended |
Sep. 30, 2018 | |
LONG-TERM DEBT. | |
LONG-TERM DEBT | NOTE 8 – LONG-TERM DEBT The mortgage notes payable and pollution control revenue bonds are secured on a parity basis by a Master First Mortgage Indenture, Deed of Trust and Security Agreement (“Master Indenture”) except for one unsecured note in the aggregate amount of $36.2 million as of September 30, 2018. Substantially all our assets, rents, revenues and margins are pledged as collateral. The Springerville certificates are secured by the assets of Springerville Unit 3. All long-term debt contains certain restrictive financial covenants, including a debt service ratio requirement and equity to capitalization ratio requirement. We have a secured revolving credit facility with National Rural Utilities Cooperative Finance Corporation, as lead arranger and administrative agent, in the amount of $650 million (“2018 Revolving Credit Agreement”) that expires on April 25, 2023. We had no outstanding borrowings as of September 30, 2018. As of September 30, 2018, we had $443.0 million in availability (including $293.0 million under the commercial paper back-up sublimit) under the 2018 Revolving Credit Agreement. Long-term debt consists of the following (dollars in thousands): September 30, December 31, 2018 2017 Total debt $ 3,197,478 $ 3,211,421 Less debt issuance costs (20,806) (21,720) Less debt discounts (10,196) (10,360) Plus debt premiums 17,726 18,949 Total debt adjusted for debt issuance costs, discounts and premiums 3,184,202 3,198,290 Less current maturities (97,601) (78,004) Long-term debt $ 3,086,601 $ 3,120,286 We are exposed to certain risks in the normal course of operations in providing a reliable and affordable source of wholesale electricity to our Members. These risks include interest rate risk, which represents the risk of increased operating expenses and higher rates due to increases in interest rates related to anticipated future long-term borrowings. To manage this exposure, we have entered into a forward starting interest rate swap to hedge a portion of our future long‑term debt interest rate exposure. We anticipate settling the interest rate swap in conjunction with the issuance of future long-term debt. The terms of the remaining interest rate swap contract are as follows (dollars in thousands): Notional Fixed Benchmark Interest Effective Maturity Amount Rate (Pay) Rate (Receive) Date Date Interest rate swap $ 80,000 2.304 % 30 year - LIBOR June 2019 June 2049 |
SHORT-TERM BORROWINGS
SHORT-TERM BORROWINGS | 9 Months Ended |
Sep. 30, 2018 | |
SHORT-TERM BORROWINGS | |
SHORT-TERM BORROWINGS | NOTE 9 – SHORT-TERM BORROWINGS We have a commercial paper program under which we issue unsecured commercial paper in aggregate amounts not exceeding the commercial paper back-up sublimit under our secured revolving credit facility, which is the lesser of $500 million or the amount available under our secured revolving credit facility. The commercial paper issuances are used to provide an additional financing source for our short-term liquidity needs. The maturities of the commercial paper issuances vary, but may not exceed 397 days from the date of issue. The commercial paper notes are classified as current and are included in current liabilities as short-term borrowings on our consolidated statements of financial position. Commercial paper consisted of the following (dollars in thousands): September 30, December 31, 2018 2017 Commercial paper outstanding, net of discounts $ 206,197 $ 144,667 Weighted average interest rate 2.29 % 1.52 % At September 30, 2018, $293 million of the commercial paper back-up sublimit remained available under the 2018 Revolving Credit Agreement. See Note 8 – Long-Term Debt. |
ASSET RETIREMENT OBLIGATIONS
ASSET RETIREMENT OBLIGATIONS | 9 Months Ended |
Sep. 30, 2018 | |
ASSET RETIREMENT OBLIGATIONS | |
ASSET RETIREMENT OBLIGATIONS | NOTE 10 – ASSET RETIREMENT OBLIGATIONS We account for current obligations associated with the future retirement of tangible long‑lived assets in accordance with the accounting guidance relating to asset retirement and environmental obligations. This guidance requires that legal obligations associated with the retirement of long‑lived assets be recognized at fair value at the time the liability is incurred and capitalized as part of the related long‑lived asset. Over time, the liability is adjusted to its present value by recognizing accretion expense and the capitalized cost of the long‑lived asset is depreciated in a manner consistent with the depreciation of the underlying physical asset. In the absence of quoted market prices, we determine fair value by using present value techniques in which estimates of future cash flows associated with retirement activities are discounted using a credit adjusted risk‑free rate and market risk premium. Upon settlement of an asset retirement obligation, we will apply payment against the estimated liability and incur a gain or loss if the actual retirement costs differ from the estimated recorded liability. These liabilities are included in asset retirement obligations. Coal mines: We have asset retirement obligations for the final reclamation costs and post‑reclamation monitoring related to the Colowyo Mine, the New Horizon Mine, and the Fort Union Mine. The New Horizon Mine started final reclamation on June 8, 2017. Generation: We, including our undivided interest in jointly owned facilities, have asset retirement obligations related to equipment, dams, ponds, wells and underground storage tanks at the generating stations. Aggregate carrying amounts of asset retirement obligations are as follows (dollars in thousands): Nine Months Ended September 30, 2018 Asset retirement obligations at beginning of period $ 56,855 Liabilities incurred 1,421 Liabilities settled (3,837) Accretion expense 2,863 Change in cash flow estimate (8,257) Total asset retirement obligations at end of period $ 49,045 Less current asset retirement obligations at end of period (1,144) Long-term asset retirement obligations at end of period $ 47,901 We also have asset retirement obligations with indeterminate settlement dates. These are made up primarily of obligations attached to transmission and other easements that are considered by us to be operated in perpetuity and therefore the measurement of the obligation is not possible. A liability will be recognized in the period in which sufficient information exists to estimate a range of potential settlement dates as is needed to employ a present value technique to estimate fair value. |
OTHER DEFERRED CREDITS AND OTHE
OTHER DEFERRED CREDITS AND OTHER LIABILITIES | 9 Months Ended |
Sep. 30, 2018 | |
OTHER DEFERRED CREDITS AND OTHER LIABILITIES | |
OTHER DEFERRED CREDITS AND OTHER LIABILITIES | NOTE 11 – OTHER DEFERRED CREDITS AND OTHER LIABILITIES In 2015, we renewed transmission right of way easements on tribal nation lands where certain of our electric transmission lines are located. $32.9 million will be paid by us for these easements from 2018 through the individual easement terms ending between 2036 and 2040. The present values for the remaining easement payments were $21.1 and $21.3 million as of September 30, 2018 and December 31, 2017, respectively, which are recorded as other deferred credits and other liabilities. A contract liability represents an entity’s obligation to transfer goods or services to a customer for which the entity has received consideration (or the amount is due) from the customer. We have received deposits from others and these deposits are reflected in contract liabilities (unearned revenue) until recognized in other operating revenues over the life of the agreement. We have received deposits from various parties and those that may still be required to be returned are a liability and these are reflected in customer deposits. The following other deferred credits and other liabilities are reflected on our consolidated statements of financial position (dollars in thousands): September 30, December 31, 2018 2017 Transmission easements $ 21,067 $ 21,337 Contract liabilities (unearned revenue) - noncurrent 7,257 6,673 Customer deposits 2,434 2,898 Other 20,942 22,488 Total other deferred credits and other liabilities $ 51,700 $ 53,396 |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 9 Months Ended |
Sep. 30, 2018 | |
EMPLOYEE BENEFIT PLANS | |
EMPLOYEE BENEFIT PLANS | NOTE 12 – EMPLOYEE BENEFIT PLANS Postretirement Benefits Other Than Pensions We sponsor three medical plans for all non-bargaining unit employees under the age of 65. Two of the plans provide postretirement medical benefits to full-time non-bargaining unit employees and retirees who receive benefits under those plans, who have attained age 55, and who elect to participate. All three of these non-bargaining unit medical plans offer postemployment medical benefits to employees on long-term disability. The plans were unfunded at September 30, 2018, are contributory (with retiree premium contributions equivalent to employee premiums, adjusted annually) and contain other cost-sharing features such as deductibles. The postretirement medical benefit and postemployment medical benefit obligations are determined annually (during the fourth quarter) by an independent actuary and are included in accumulated postretirement benefit and postemployment obligations on our consolidated statements of financial position as follows (dollars in thousands): September 30, 2018 Postretirement medical benefit obligation at beginning of period $ 8,455 Service cost 456 Interest cost 211 Benefit payments (net of contributions by participants) (309) Postretirement medical benefit obligation at end of period $ 8,813 Postemployment medical benefit obligation at end of period 367 Total postretirement and postemployment medical obligations at end of period $ 9,180 The service cost component of our net periodic benefit cost is included in operating expenses on our consolidated statements of operations. The components of net periodic benefit cost other than the service cost component are included in other income (expense) on our consolidated statements of operations. In accordance with the accounting standard related to postretirement benefits other than pensions, actuarial gains and losses are not recognized in income but are instead recorded in accumulated other income on our consolidated statements of financial position. If the unrecognized amount is in excess of 10 percent of the projected benefit obligation, amounts are reclassified out of accumulated other comprehensive income and included in net income as the excess is amortized over the average remaining service lives of the active plan participants. Unrecognized actuarial gains and losses have been determined per actuarial studies for the postretirement medical benefit obligation. The net unrecognized actuarial gains and losses related to the postretirement medical benefit obligations are included in accumulated other comprehensive income as follows (dollars in thousands): September 30, 2018 Amounts included in accumulated other comprehensive income at beginning of period $ (369) Amortization of prior service credit into other income (expense) (59) Amounts included in accumulated other comprehensive income at end of period $ (428) |
REVENUE
REVENUE | 9 Months Ended |
Sep. 30, 2018 | |
REVENUE | |
REVENUE | NOTE 13 – REVENUE Revenue from Contracts with Customers Our revenues are derived primarily from the sale of electric power to our Members pursuant to long-term wholesale electric service contracts. Our contracts with our Members extend through 2050 for 42 Members and 2040 for the remaining Member. Member electric sales Revenues from electric power sales to our Members are primarily from our Class A rate schedule. Our Class A rate schedule for electric power sales to our Members consists of two billing components: an energy rate and demand rates. Our Class A rate schedule is variable and is approved by our Board. Energy and demand have the same pattern of transfer to our Members and are both measurements of the electric power provided to our Members. Therefore, the provision of electric power to our Members is one performance obligation. Prior to our Members’ requirement for electric power, we do not have a contractual right to consideration as we are not obligated to provide electric power until the Member requires each incremental unit of electric power. We transfer control of the electric power to our Members over time and our Members simultaneously receive and consume the benefits of the electric power. Progress toward completion of our performance obligation is measured using the output method, meter readings are taken at the end of each month for billing purposes, energy and demand are determined after the meter readings and Members are invoiced based on the meter reading. Payments from our Members are received in accordance with the wholesale electric service contracts’ terms, which is less than 30 days from the invoice date. Member electric sales revenue is recorded as Member electric sales on our consolidated statements of operations and Accounts receivable – Members on our consolidated statements of financial position. In addition to our Member electric sales, we have non-member electric sales and other operating revenue which consist of several revenue streams. The following revenue is reflected on our consolidated statements of operations for the three and nine months ended September 30, 2018 and 2017 (dollars in thousands): Three Months Ended September 30, Nine Months Ended September 30, Non-member electric sales: 2018 2017 2018 2017 Long-term contracts $ 11,985 $ 14,441 $ 34,457 $ 49,632 Short-term contracts 19,019 10,913 28,468 21,193 Recognition of deferred revenue — — — 15,000 Coal sales 1,075 11,664 1,075 29,194 Other 12,591 12,691 37,262 37,346 Total non-member electric sales and other operating revenue $ 44,670 $ 49,709 $ 101,262 $ 152,365 Non-member electric sales Revenues from electric power sales to non-members are primarily from two long-term contracts and short-term market sales. We recognized $15 million of deferred revenue for the six months ended June 30, 2017, as directed by our Board, which has budgetary and rate-setting authority. See Note 2 – Accounting for Rate Regulation. We have both long-term and short-term non-member electric sales contracts that provide energy. Prior to our customers’ demand for energy, we do not have a contractual right to consideration as we are not obligated to provide energy until the customer demands each incremental unit of energy. We transfer control of the energy to our customer over time and our customer simultaneously receives and consumes the benefits of the electric power. Progress toward completion of our performance obligation is measured using the output method. Payments are received in accordance with the contract terms, which is less than 30 days after the invoice is received by the customer. Coal Sales Coal sales revenue results from the sale of coal from the Colowyo Mine to third parties. Colowyo Coal had a long term coal sales contract that expired in December 2017. In 2018, Colowyo Coal entered into a long term coal sales contract with deliveries of coal commencing in the third quarter of 2018. We have an obligation to deliver coal and our progress of our completion toward our performance obligation is measured using the output method. Our performance obligation is completed as coal is delivered. Other operating revenue Other operating revenue consists primarily of the following revenue streams: wheeling, transmission, supplying steam and water, and leasing. Wheeling revenue is received when we charge other energy companies for transmitting electricity over our transmission lines (payments are received in accordance with the contract terms which is within 20 days of the date the invoice was issued). Transmission revenue is from Southwest Power Pool’s scheduling of transmission across our transmission assets because of our membership in it (Southwest Power Pool collects the revenue from the customer and pays us for the scheduling, system control, dispatch transmission service, and the annual transmission revenue requirement). Steam and water revenue is derived from supplying steam and water to a paper manufacturer located adjacent to the Escalante Station (payments from the customer are received in accordance with the contract terms which is less than 15 days from the invoice date). Each of these services or goods are provided over time and progress toward completion of our performance obligations are measured using the output method. The lease revenue is primarily from a certain power sales arrangement that is required to be accounted for as an operating lease since the arrangement is in substance a lease because it conveys the right to use power generating equipment for a stated period of time. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2018 | |
INCOME TAXES | |
INCOME TAXES | NOTE 14 – INCOME TAXES We are a taxable cooperative subject to federal and state taxation. As a taxable electric cooperative, we are allowed a tax exclusion for margins allocated as patronage capital. We utilize the liability method of accounting for income taxes. However, in accordance with our regulatory accounting treatment, changes in deferred tax assets or liabilities result in the establishment of a regulatory asset or liability. A regulatory asset or liability associated with deferred income taxes generally represents the future increase or decrease in income taxes payable that will be settled or received through future rate revenues. Under this regulatory accounting approach, the income tax expense (benefit) on our consolidated statements of operations includes only the current provision. Our consolidated statements of operations included an income tax benefit of $0.2 million for the three months ended September 30, 2018 and $0.3 million for the comparable period in 2017. Our consolidated statements of operations included an income tax benefit of $0.5 million for the nine months ended September 30, 2018 and $0.9 million for the comparable period in 2017. These income tax benefits are due to an alternative minimum tax credit refund. Upon filing of our U.S. Federal income tax return during the third quarter, we determined that no adjustments were necessary to our provisional estimates made as of December 31, 2017 with respect to the remeasurement of our deferred tax assets and liabilities under the Tax Cuts and Jobs Act. Our assessment remains provisional as further guidance may be released by the Internal Revenue Service. We will finalize our assessments no later than the fourth quarter of 2018. |
FAIR VALUE
FAIR VALUE | 9 Months Ended |
Sep. 30, 2018 | |
FAIR VALUE | |
FAIR VALUE | NOTE 15 – FAIR VALUE Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability between market participants in the principal or in the most advantageous market when no principal market exists. The fair value measurement accounting guidance emphasizes that fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability (market participants are assumed to be independent, knowledgeable, able and willing to transact an exchange and not under duress). In considering market participant assumptions in fair value measurements, a three-tier fair value hierarchy for measuring fair value was established which prioritizes the inputs used in measuring fair value as follows: Level 1 inputs are based upon quoted prices for identical instruments traded in active (exchange-traded) markets. Valuations are obtained from readily available pricing sources for market transactions (observable market data) involving identical assets or liabilities. Level 2 inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques (such as option pricing models, discounted cash flow models) for which all significant assumptions are observable in the market. Level 3 inputs consist of unobservable market data which is typically based on an entity’s own assumptions of what a market participant would use in pricing an asset or liability as there is little, if any, related market activity. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. Marketable Securities We hold marketable securities in connection with the directors’ and executives’ elective deferred compensation plans which consist of investments in stock funds, bond funds and money market funds. These securities are measured at fair value on a recurring basis with changes in fair value recognized in earnings. The estimated fair value of the investments is based upon their active market value (Level 1 inputs) and is included in other noncurrent assets on our consolidated statements of financial position. The cost and fair values of our marketable securities are as follows (dollars in thousands): As of September 30, 2018 As of December 31, 2017 Estimated Estimated Cost Fair Value Cost Fair Value Marketable securities $ 673 $ 789 $ 1,007 $ 1,166 Cash Equivalents We invest portions of our cash and cash equivalents in commercial paper, money market funds, and other highly liquid investments. The fair value of these investments approximates our cost basis in the investments. In aggregate, the fair value was $115.5 million as of September 30, 2018 and $109.4 million as of December 31, 2017. Debt The fair values of debt were estimated using discounted cash flow analyses based on our current incremental borrowing rates for similar types of borrowing arrangements. These valuation assumptions utilize observable inputs based on market data obtained from independent sources and are therefore considered Level 2 inputs (quoted prices for similar assets, liabilities (adjusted) and market corroborated inputs). The principal amounts and fair values of our debt are as follows (dollars in thousands): As of September 30, 2018 As of December 31, 2017 Principal Estimated Principal Estimated Amount Fair Value Amount Fair Value Total debt $ 3,197,478 $ 3,351,442 $ 3,211,421 $ 3,600,650 Interest Rate Swaps We entered into a forward starting interest rate swap in 2016 to hedge a portion of our future long-term debt interest rate expense. See Note 8 – Long-Term Debt. This interest rate swap is a derivative instrument in accordance with ASC 815, Derivatives and Hedging, and is recorded at fair value on a recurring basis. The estimated fair value of this interest rate swap utilizes observable inputs based on market data obtained from independent sources and is therefore considered a Level 2 input (quoted prices for similar assets, liabilities (adjusted) and market corroborated inputs) and is included in other deferred charges on our consolidated statements of financial position. At September 30, 2018, the fair value of the interest rate swap was an unrealized gain of $12.6 million, which was deferred in accordance with our regulatory accounting. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 9 Months Ended |
Sep. 30, 2018 | |
VARIABLE INTEREST ENTITIES | |
VARIABLE INTEREST ENTITIES | NOTE 16 – VARIABLE INTEREST ENTITIES The following is a description of our financial interests in variable interest entities that we consider significant. This includes an entity for which we are determined to be the primary beneficiary and therefore consolidate and also entities for which we are not the primary beneficiary and therefore do not consolidate. Consolidated Variable Interest Entity Springerville Partnership: We own a 51 percent equity interest, including the 1 percent general partner equity interest, in the Springerville Partnership, which is the 100 percent owner of Springerville Unit 3 Holding LLC (“Owner Lessor”). The Owner Lessor is the owner of the Springerville Unit 3. We, as general partner of the Springerville Partnership, have the full, exclusive and complete right, power and discretion to operate, manage and control the affairs of the Springerville Partnership and take certain actions necessary to maintain the Springerville Partnership in good standing without the consent of the limited partners. Additionally, the Owner Lessor has historically not demonstrated an ability to finance its activities without additional financial support. The financial support is provided by our remittance of lease payments in order to permit the Owner Lessor, the holder of the Springerville Unit 3 assets, to pay the debt obligations and equity returns of the Springerville Partnership. We have the primary risk (expense) exposure in operating the Springerville Unit 3 assets and are responsible for 100 percent of the operation, maintenance and capital expenditures of Springerville Unit 3 and the decisions related to those expenditures including budgeting, financing and dispatch of power. Based on all these facts, it was determined that we are the primary beneficiary of the Owner Lessor. Therefore, the Springerville Partnership and Owner Lessor have been consolidated by us. Our consolidated statements of financial position include the Springerville Partnership’s net electric plant of $799.1 million and $812.7 million at September 30, 2018 and December 31, 2017, respectively, the long-term debt of $416.4 million (including debt premiums) and $431.3 million (including debt premiums) at September 30, 2018 and December 31, 2017, respectively, accrued interest associated with the long-term debt of $4.8 million and $12.4 million at September 30, 2018 and December 31, 2017, respectively, and the 49 percent noncontrolling equity interest in the Springerville Partnership of $109.3 million and $111.3 million at September 30, 2018 and December 31, 2017, respectively. Our consolidated statements of operations include the Springerville Partnership’s depreciation and amortization expense of $4.5 million for the three months ended September 30, 2018 and for the comparable period in 2017. Our consolidated statements of operations also include interest expense of $6.9 million for the three months ended September 30, 2018 and $7.1 million for the comparable period in 2017. Our consolidated statements of operations include the Springerville Partnership’s depreciation and amortization expense of $13.6 million for the nine months ended September 30, 2018 and $15.1 million for the comparable period in 2017. Our consolidated statements of operations also include interest expense of $20.7 million for the nine months ended September 30, 2018 and $21.3 million for the comparable period in 2017. The net income or loss attributable to the 49 percent noncontrolling equity interest in the Springerville Partnership is reflected on our consolidated statements of operations. The revenue associated with the Springerville Partnership lease has been eliminated in consolidation. Income, losses and cash flows of the Springerville Partnership are allocated to the general and limited partners based on their equity ownership percentages. Unconsolidated Variable Interest Entities Western Fuels Association, Inc. (“WFA”) : WFA is a non-profit membership corporation organized for the purpose of acquiring and supplying fuel resources to its members, which includes us. WFA supplies fuel to MBPP for the use of the Laramie River Station through its ownership in Western Fuels-Wyoming. We also receive coal supplies directly from WFA for the Escalante Generating Station in New Mexico. The pricing structure of the coal supply agreements with WFA is designed to recover the mine operating costs of the mine supplying the coal and therefore the coal sales agreements provide the financial support for the mine operations. There is not sufficient equity at risk for WFA to finance its activities without additional financial support. Therefore, WFA is considered a variable interest entity in which we have a variable interest. The power to direct the activities that most significantly impact WFA’s economic performance (acquiring and supplying fuel resources) is held by the members who are represented on the WFA board of directors whose actions require joint approval. Therefore, since there is shared power over the significant activities of WFA, we are not the primary beneficiary of WFA and the entity is not consolidated. Our investment in WFA, accounted for using the cost method, was $2.4 million and $2.3 million at September 30, 2018 and December 31, 2017, respectively, and is included in investments in other associations. Western Fuels – Wyoming (“WFW”) : WFW, the owner and operator of the Dry Fork Mine in Gillette, WY, was organized for the purpose of acquiring and supplying coal, through long-term coal supply agreements, to be used in the production of electric energy at the Laramie River Station (owned by the participants of MBPP) and at the Dry Fork Station (owned by Basin). WFA owns 100 percent of the class AA shares and 75 percent of the class BB shares of WFW, while the participants of MBPP (of which we have a 27.13 percent undivided interest) own the remaining 25 percent of class BB shares of WFW. The pricing structure of the coal supply agreements is designed to recover the costs of production of the Dry Fork Mine and therefore the coal supply agreements provide the financial support for the operation of the Dry Fork Mine. There is not sufficient equity at risk at WFW for it to finance its activities without additional financial support. Therefore, WFW is considered a variable interest entity in which we have a variable interest. The power to direct the activities that most significantly impact WFW’s economic performance (which includes operations, maintenance and reclamation activities) is shared with the equity interest holders since each member has representation on the WFW board of directors whose actions require joint approval. Therefore, we are not the primary beneficiary of WFW and the entity is not consolidated. Trapper Mining, Inc. (“Trapper Mining”) : Trapper Mining is a cooperative organized for the purpose of mining, selling and delivering coal from the Trapper Mine to the Craig Generating Station Units 1 and 2 through long-term coal supply agreements. Trapper Mining is jointly owned by some of the participants of the Yampa Project. We have a 26.57 percent cooperative member interest in Trapper Mining. The pricing structure of the coal supply agreements is designed to recover the costs of production of the Trapper Mine and therefore the coal supply agreements provide the financial support for the operation of the Trapper Mine. There is not sufficient equity at risk for Trapper Mining to finance its activities without the additional financial support. Therefore, Trapper Mining is considered a variable interest entity in which we have a variable interest. The power to direct the activities that most significantly impact Trapper Mining’s economic performance (which includes operations, maintenance and reclamation activities) is shared with the cooperative members since each member has representation on the Trapper Mining board of directors whose actions require joint approval. Therefore, we are not the primary beneficiary of Trapper Mining and the entity is not consolidated. We record our investment in Trapper Mining using the equity method. Our membership interest in Trapper Mining was $15.2 million at September 30, 2018 and $15.0 million at December 31, 2017. |
LEGAL
LEGAL | 9 Months Ended |
Sep. 30, 2018 | |
LEGAL | |
LEGAL | NOTE 17 – LEGAL Other than as disclosed below, there are no new material litigation or proceedings pending or threatened against us or any material developments in any material existing pending litigation or proceedings. In June 2011, a wildfire in New Mexico, known as the Las Conchas Fire, burned for five weeks in northern New Mexico. Six plaintiff groups, composed of property owners in the area of the Las Conchas Fire, filed separate lawsuits against our Member, Jemez Mountains Electric Cooperative, Inc. (“JMEC”) in the Thirteenth District Court, Sandoval County in the State of New Mexico. Plaintiffs alleged that the fire ignited when a tree growing outside JMEC’s right-of-way fell onto a distribution line owned by JMEC as a result of high winds. On January 7, 2014, the district court allowed all parties and related parties to amend their complaints to include the addition of us as a party defendant. After JMEC settled with one plaintiff group, the remaining cases were Elizabeth Ora Cox, et al., v. Jemez Mountains Electric Cooperative, Inc., et al.; Norman Armijo, et al., v. Jemez Mountains Electric Cooperative, Inc., et al.; Esequiel Espinoza, et al. v. Allstate Property & Casualty, et al.; Jemez Pueblo v. Jemez Mountains Electric Cooperative, Inc., et al.; and Pueblo de Cochiti., et al. v. Jemez Mountains Electric Cooperative, Inc., et al. The allegations in each case were similar. Plaintiffs alleged that we owed them independent duties to inspect and maintain the right‑of‑way for JMEC’s distribution line and that we were also jointly liable for any negligence by JMEC under joint venture and joint enterprise theories. A jury trial commenced on September 28, 2015 on the liability aspect of this matter. On October 28, 2015, the jury affirmed our position that we and JMEC did not operate as a joint venture or joint enterprise. The jury did find we owed the plaintiffs an independent duty and allocated comparative negligence with JMEC 75 percent negligent, us 20 percent negligent, and the United States Forest Service 5 percent negligent. On September 12 and 25, 2017, we filed notices to appeal to the New Mexico Court of Appeals the determination of our liability for this matter. The plaintiffs filed cross-appeals on their joint venture and joint enterprise claims. In June and July 2018, we reached separate confidential settlements with all plaintiff groups, which amounts were covered by our liability insurance. The district court and the New Mexico Court of Appeals have dismissed all cases related to this matter. Pursuant to a 30 year power sales contract with another utility that expires in 2020, we currently sell such utility 25 MWs of capacity and energy. The purchase rate for capacity is determined using our Class A wholesale rate schedule. The utility has recently reviewed our charges for capacity since 2000 and alleges such charges are not in accordance with the terms of the power sales contract. We are in discussions with the utility regarding their review of our charges for capacity and no formal dispute resolution process has commenced. It is not possible to predict whether we will incur any liability or to reasonably estimate the amount or range of loss, if any, we might incur in connection with this matter. |
PRESENTATION OF FINANCIAL INF_2
PRESENTATION OF FINANCIAL INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
PRESENTATION OF FINANCIAL INFORMATION | |
Schedule of jointly owned facilities | Our share in each jointly owned facility is as follows as of September 30, 2018 (dollars in thousands): Electric Construction Tri-State Plant in Accumulated Work In Share Service Depreciation Progress Yampa Project - Craig Generating Station Units 1 and 2 24.00 % $ 391,924 $ 237,934 $ 4,360 MBPP - Laramie River Station 27.13 % 420,762 297,335 49,863 Total $ 812,686 $ 535,269 $ 54,223 |
ACCOUNTING FOR RATE REGULATION
ACCOUNTING FOR RATE REGULATION (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
ACCOUNTING FOR RATE REGULATION | |
Schedule of regulatory assets and liabilities | Regulatory assets and liabilities are as follows (dollars in thousands): September 30, December 31, 2018 2017 Regulatory assets Deferred income tax expense (1) $ 15,227 $ 17,205 Deferred prepaid lease expense – Craig Unit 3 Lease (2) — 3,237 Deferred prepaid lease expense – Springerville Unit 3 Lease (3) 86,578 88,296 Goodwill – J.M. Shafer (4) 52,706 54,843 Goodwill – Colowyo Coal (5) 38,486 39,261 Deferred debt prepayment transaction costs (6) 151,716 158,187 Deferred Holcomb expansion impairment loss (7) 93,494 93,494 Total regulatory assets 438,207 454,523 Regulatory liabilities Interest rate swap - unrealized gain (8) 12,641 4,311 Interest rate swap - realized gain (9) 4,332 4,614 Deferred revenues (10) 30,327 30,327 Membership withdrawal (11) 42,572 42,572 Total regulatory liabilities 89,872 81,824 Net regulatory asset $ 348,335 $ 372,699 (1) A regulatory asset or liability associated with deferred income taxes generally represents the future increase or decrease in income taxes payable that will be received or settled through future rate revenues. (2) Represented deferral of the loss on acquisition related to the Craig Generating Station Unit 3 prepaid lease expense upon acquisitions of equity interests in 2002 and 2006. The regulatory asset for the deferred prepaid lease expense was amortized to depreciation, amortization and depletion expense in the amount of $6.5 million annually through December 31, 2017. The remaining $3.2 million was amortized to depreciation, amortization and depletion expense for the six month period ending June 30, 2018 and recovered from our Members in rates. (3) Represents deferral of the loss on acquisition related to the Springerville Generating Station Unit 3 (“Springerville Unit 3”) prepaid lease expense upon acquiring a controlling interest in the Springerville Unit 3 Partnership LP (“Springerville Partnership”) in 2009. The regulatory asset for the deferred prepaid lease expense is being amortized to depreciation, amortization and depletion expense in the amount of $2.3 million annually through the 47-year period ending in 2056 and recovered from our Members in rates. (4) Represents goodwill related to our acquisition of Thermo Cogeneration Partnership, LP in December 2011. Goodwill is being amortized to depreciation, amortization and depletion expense in the amount of $2.8 million annually through the 25-year period ending in 2036 and recovered from our Members in rates. (5) Represents goodwill related to our acquisition of Colowyo Coal Company LP (“Colowyo Coal”) in December 2011. Goodwill is being amortized to depreciation, amortization and depletion expense in the amount of $1.0 million annually through the 44-year period ending in 2056 and recovered from our Members in rates. (6) Represents transaction costs that we incurred related to the prepayment of our long-term debt in 2014. These costs are being amortized to depreciation, amortization and depletion expense in the amount of $8.6 million annually over the 21-year period ending in 2035 and recovered from our Members in rates. (7) Represents deferral of the impairment loss related to development costs, including costs for the option to purchase development rights for the expansion of the Holcomb Generating Station. The plan for the recovery from our Members in rates has not been determined by our Board. Once the plan for recovery is determined, the deferred impairment loss will be recognized in other operating expenses. (8) Represents deferral of an unrealized gain related to the change in fair value of a forward starting interest rate swap that was entered into in 2016 in order to hedge interest rates on anticipated future borrowings. Upon settlement of this interest rate swap, the realized gain or loss will be deferred and subsequently recognized as interest expense when amortized over the term of the associated long-term debt borrowing. See Note 8 – Long-Term Debt. (9) Represents deferral of a realized gain of $4.6 million related to the October 2017 settlement of a forward starting interest rate swap that was entered into in 2016. This realized gain was deferred as a regulatory liability and is being amortized to interest expense over the 12-year term of the First Mortgage Obligations, Series 2017A. (10) Represents deferral of the recognition of non-member electric sales revenues. These deferred non-member electric sales revenues will be refunded to Members through reduced rates when recognized in non-member electric sales revenue in future periods. Represents the deferral of the recognition of other income recorded in connection with the withdrawal of a former Member from membership in us. This deferred membership withdrawal income will be refunded to Members through reduced rates when recognized in other income in future periods. |
INVESTMENTS IN OTHER ASSOCIAT_2
INVESTMENTS IN OTHER ASSOCIATIONS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
INVESTMENTS IN OTHER ASSOCIATIONS | |
Schedule of investments in other associations | Investments in other associations are as follows (dollars in thousands): September 30, December 31, 2018 2017 Basin Electric Power Cooperative $ 101,820 $ 101,820 National Rural Utilities Cooperative Finance Corporation - patronage capital 11,704 11,232 National Rural Utilities Cooperative Finance Corporation - capital term certificates 16,021 16,085 CoBank, ACB 8,671 8,174 Western Fuels Association, Inc. 2,400 2,346 Other 4,242 3,951 Investments in other associations $ 144,858 $ 143,608 |
INVESTMENTS IN AND ADVANCES T_2
INVESTMENTS IN AND ADVANCES TO COAL MINES (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
INVESTMENTS IN AND ADVANCES TO COAL MINES | |
Schedule of investments in and advances to coal mines | Investments in and advances to coal mines are as follows (dollars in thousands): September 30, December 31, 2018 2017 Investment in Trapper Mine $ 15,217 $ 14,998 Advances to Dry Fork Mine 3,746 3,276 Investments in and advances to coal mines $ 18,963 $ 18,274 |
CASH, CASH EQUIVALENTS AND RE_2
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AND INVESTMENTS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AND INVESTMENTS | |
Schedule of cash, cash equivalents and restricted cash and investments | The following table provides a reconciliation of cash, cash equivalents and restricted cash and investments reported within our consolidated statements of financial position that sum to the total of the same such amount shown in our consolidated statements of cash flows (dollars in thousands): September 30, December 31, 2018 2017 Cash and cash equivalents $ 119,619 $ 143,694 Restricted cash and investments - current 134 1,292 Restricted cash and investments - noncurrent 5,925 5,979 Cash, cash equivalents and restricted cash and investments $ 125,678 $ 150,965 |
CONTRACT ASSETS AND CONTRACT _2
CONTRACT ASSETS AND CONTRACT LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
CONTRACT ASSETS AND CONTRACT LIABILITIES | |
Schedule of contract assets and liabilities | Our contract assets and liabilities consist of the following (dollars in thousands): September 30, December 31, 2018 2017 Accounts receivable - Members $ 105,802 $ 102,035 Other accounts receivable - trade: Non-member electric sales 8,796 5,493 Coal sales - 1,446 Other 15,497 6,634 Total other accounts receivable - trade 24,293 13,573 Other accounts receivable - nontrade 7,180 2,461 Total other accounts receivable $ 31,473 $ 16,034 Contract liabilities (unearned revenue) $ 8,122 $ 7,567 |
OTHER DEFERRED CHARGES (Tables)
OTHER DEFERRED CHARGES (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
OTHER DEFERRED CHARGES. | |
Schedule of Other Deferred Charges | Other deferred charges are as follows (dollars in thousands): September 30, December 31, 2018 2017 Preliminary surveys and investigations $ 20,254 $ 19,737 Advances to operating agents of jointly owned facilities 12,620 10,740 Interest rate swap 12,641 4,311 Other 2,685 3,704 Total other deferred charges $ 48,200 $ 38,492 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
LONG-TERM DEBT. | |
Schedule of long-term debt | Long-term debt consists of the following (dollars in thousands): September 30, December 31, 2018 2017 Total debt $ 3,197,478 $ 3,211,421 Less debt issuance costs (20,806) (21,720) Less debt discounts (10,196) (10,360) Plus debt premiums 17,726 18,949 Total debt adjusted for debt issuance costs, discounts and premiums 3,184,202 3,198,290 Less current maturities (97,601) (78,004) Long-term debt $ 3,086,601 $ 3,120,286 |
Schedule of interest rate swap contracts | The terms of the remaining interest rate swap contract are as follows (dollars in thousands): Notional Fixed Benchmark Interest Effective Maturity Amount Rate (Pay) Rate (Receive) Date Date Interest rate swap $ 80,000 2.304 % 30 year - LIBOR June 2019 June 2049 |
SHORT-TERM BORROWINGS (Tables)
SHORT-TERM BORROWINGS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
SHORT-TERM BORROWINGS | |
Schedule of commercial paper | Commercial paper consisted of the following (dollars in thousands): September 30, December 31, 2018 2017 Commercial paper outstanding, net of discounts $ 206,197 $ 144,667 Weighted average interest rate 2.29 % 1.52 % |
ASSET RETIREMENT OBLIGATIONS (T
ASSET RETIREMENT OBLIGATIONS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
ASSET RETIREMENT OBLIGATION | |
Schedule of Asset Retirement Obligations | Aggregate carrying amounts of asset retirement obligations are as follows (dollars in thousands): Nine Months Ended September 30, 2018 Asset retirement obligations at beginning of period $ 56,855 Liabilities incurred 1,421 Liabilities settled (3,837) Accretion expense 2,863 Change in cash flow estimate (8,257) Total asset retirement obligations at end of period $ 49,045 Less current asset retirement obligations at end of period (1,144) Long-term asset retirement obligations at end of period $ 47,901 |
OTHER DEFERRED CREDITS AND OT_2
OTHER DEFERRED CREDITS AND OTHER LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
OTHER DEFERRED CREDITS AND OTHER LIABILITIES | |
Schedule of other deferred credits and other liabilities | The following other deferred credits and other liabilities are reflected on our consolidated statements of financial position (dollars in thousands): September 30, December 31, 2018 2017 Transmission easements $ 21,067 $ 21,337 Contract liabilities (unearned revenue) - noncurrent 7,257 6,673 Customer deposits 2,434 2,898 Other 20,942 22,488 Total other deferred credits and other liabilities $ 51,700 $ 53,396 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
EMPLOYEE BENEFIT PLANS | |
Schedule of the postretirement medical benefit and postemployment medical benefit obligations | The postretirement medical benefit and postemployment medical benefit obligations are determined annually (during the fourth quarter) by an independent actuary and are included in accumulated postretirement benefit and postemployment obligations on our consolidated statements of financial position as follows (dollars in thousands): September 30, 2018 Postretirement medical benefit obligation at beginning of period $ 8,455 Service cost 456 Interest cost 211 Benefit payments (net of contributions by participants) (309) Postretirement medical benefit obligation at end of period $ 8,813 Postemployment medical benefit obligation at end of period 367 Total postretirement and postemployment medical obligations at end of period $ 9,180 |
Schedule of the net unrecognized actuarial gains and losses related to the postretirement medical benefit obligation that are included in accumulated other comprehensive income | The net unrecognized actuarial gains and losses related to the postretirement medical benefit obligations are included in accumulated other comprehensive income as follows (dollars in thousands): September 30, 2018 Amounts included in accumulated other comprehensive income at beginning of period $ (369) Amortization of prior service credit into other income (expense) (59) Amounts included in accumulated other comprehensive income at end of period $ (428) |
REVENUE (Tables)
REVENUE (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
REVENUE | |
Schedule of revenue from contracts with non-member customers and other operating revenue | In addition to our Member electric sales, we have non-member electric sales and other operating revenue which consist of several revenue streams. The following revenue is reflected on our consolidated statements of operations for the three and nine months ended September 30, 2018 and 2017 (dollars in thousands): Three Months Ended September 30, Nine Months Ended September 30, Non-member electric sales: 2018 2017 2018 2017 Long-term contracts $ 11,985 $ 14,441 $ 34,457 $ 49,632 Short-term contracts 19,019 10,913 28,468 21,193 Recognition of deferred revenue — — — 15,000 Coal sales 1,075 11,664 1,075 29,194 Other 12,591 12,691 37,262 37,346 Total non-member electric sales and other operating revenue $ 44,670 $ 49,709 $ 101,262 $ 152,365 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Marketable securities | |
FAIR VALUE | |
Schedule of carrying amounts and fair values of assets and liabilities | The cost and fair values of our marketable securities are as follows (dollars in thousands): As of September 30, 2018 As of December 31, 2017 Estimated Estimated Cost Fair Value Cost Fair Value Marketable securities $ 673 $ 789 $ 1,007 $ 1,166 |
Long-term debt | |
FAIR VALUE | |
Schedule of carrying amounts and fair values of assets and liabilities | The principal amounts and fair values of our debt are as follows (dollars in thousands): As of September 30, 2018 As of December 31, 2017 Principal Estimated Principal Estimated Amount Fair Value Amount Fair Value Total debt $ 3,197,478 $ 3,351,442 $ 3,211,421 $ 3,600,650 |
PRESENTATION OF FINANCIAL INF_3
PRESENTATION OF FINANCIAL INFORMATION - Jointly Owned Facilities (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018USD ($)facility | Jul. 01, 2018 | |
Jointly owned facilities | ||
Number of jointly owned facilities | facility | 2 | |
Electric plant in service | $ 812,686 | |
Accumulated depreciation | 535,269 | |
Construction work in progress | $ 54,223 | |
Yampa | ||
Jointly owned facilities | ||
Tri-State share (as a percent) | 24.00% | |
Electric plant in service | $ 391,924 | |
Accumulated depreciation | 237,934 | |
Construction work in progress | $ 4,360 | |
MBPP | ||
Jointly owned facilities | ||
Additional ownership interest acquired (as a percent) | 3 | |
Tri-State share (as a percent) | 27.13% | |
Electric plant in service | $ 420,762 | |
Accumulated depreciation | 297,335 | |
Construction work in progress | $ 49,863 |
ACCOUNTING FOR RATE REGULATIO_2
ACCOUNTING FOR RATE REGULATION (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended |
Oct. 31, 2017 | Jun. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | |
Regulatory assets and liabilities | ||||
Regulatory assets | $ 438,207 | $ 454,523 | ||
Regulatory liabilities | 89,872 | 81,824 | ||
Net regulatory asset | 348,335 | 372,699 | ||
Interest rate swap - unrealized gain | ||||
Regulatory assets and liabilities | ||||
Regulatory liabilities | 12,641 | 4,311 | ||
Interest rate swaps, realized gain | ||||
Regulatory assets and liabilities | ||||
Regulatory liabilities | 4,332 | 4,614 | ||
Proceeds from settlement of interest rate swaps | $ 4,600 | |||
Deferred non-member electric sales | ||||
Regulatory assets and liabilities | ||||
Regulatory liabilities | 30,327 | 30,327 | ||
Deferred revenue from membership withdrawal | ||||
Regulatory assets and liabilities | ||||
Regulatory liabilities | 42,572 | 42,572 | ||
Deferred income tax expense | ||||
Regulatory assets and liabilities | ||||
Regulatory assets | 15,227 | 17,205 | ||
Deferred prepaid lease expense | Craig Unit 3 Lease | ||||
Regulatory assets and liabilities | ||||
Regulatory assets | 3,237 | |||
Annual amortization expense | 6,500 | |||
Amortization expense | $ 3,200 | |||
Deferred prepaid lease expense | Springerville Unit 3 Lease | ||||
Regulatory assets and liabilities | ||||
Regulatory assets | 86,578 | 88,296 | ||
Annual amortization expense | $ 2,300 | |||
Amortization period | 47 years | |||
Goodwill | TCP | ||||
Regulatory assets and liabilities | ||||
Regulatory assets | $ 52,706 | 54,843 | ||
Annual amortization expense | $ 2,800 | |||
Amortization period | 25 years | |||
Goodwill | Colowyo Coal | ||||
Regulatory assets and liabilities | ||||
Regulatory assets | $ 38,486 | 39,261 | ||
Annual amortization expense | $ 1,000 | |||
Amortization period | 44 years | |||
Deferred debt prepayment transaction costs | ||||
Regulatory assets and liabilities | ||||
Regulatory assets | $ 151,716 | 158,187 | ||
Annual amortization expense | $ 8,600 | |||
Amortization period | 21 years | |||
Holcomb Expansion | Deferred impairment loss | ||||
Regulatory assets and liabilities | ||||
Regulatory assets | $ 93,494 | $ 93,494 | ||
First Mortgage Obligations, Series 2017A , Tranche 1, 3.34%, due through 2029 | ||||
Regulatory assets and liabilities | ||||
Term of issuance | 12 years |
INVESTMENTS IN OTHER ASSOCIAT_3
INVESTMENTS IN OTHER ASSOCIATIONS (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Investment in other associations | ||
Investment in other associations | $ 144,858 | $ 143,608 |
Impairment during the period | 0 | 0 |
Basin Electric Power Cooperative | ||
Investment in other associations | ||
Investment in other associations | 101,820 | 101,820 |
National Rural Utilities Cooperative Finance Corporation - patronage capital | ||
Investment in other associations | ||
Investment in other associations | 11,704 | 11,232 |
National Rural Utilities Cooperative Finance Corporation - capital term certificates | ||
Investment in other associations | ||
Investment in other associations | 16,021 | 16,085 |
CoBank, ACB | ||
Investment in other associations | ||
Investment in other associations | 8,671 | 8,174 |
Western Fuels Association | ||
Investment in other associations | ||
Investment in other associations | 2,400 | 2,346 |
Other | ||
Investment in other associations | ||
Investment in other associations | $ 4,242 | $ 3,951 |
INVESTMENTS IN AND ADVANCES T_3
INVESTMENTS IN AND ADVANCES TO COAL MINES (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Investments in and advances to coal mines | ||
Investments in and advances to coal mines | $ 18,963 | $ 18,274 |
Trapper Mining | ||
Investments in and advances to coal mines | ||
Investment in coal mine | 15,217 | 14,998 |
Dry Fork Mine | ||
Investments in and advances to coal mines | ||
Advances | $ 3,746 | $ 3,276 |
CASH, CASH EQUIVALENTS AND RE_3
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AND INVESTMENTS (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AND INVESTMENTS | ||||
Cash and cash equivalents | $ 119,619 | $ 143,694 | ||
Restricted cash and investments - current | 134 | 1,292 | ||
Restricted cash and investments - noncurrent | 5,925 | 5,979 | ||
Cash, cash equivalents and restricted cash and investments | $ 125,678 | $ 150,965 | $ 134,083 | $ 167,890 |
CONTRACT ASSETS AND CONTRACT _3
CONTRACT ASSETS AND CONTRACT LIABILITIES (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Contract assets | ||
Contract assets | $ 0 | |
Accounts receivable | ||
Accounts receivable—Members | 105,802 | $ 102,035 |
Other accounts receivable | 31,473 | 16,034 |
Contract liabilities | ||
Contract liabilities (unearned revenue) | 8,122 | 7,567 |
Other accounts receivable - trade | ||
Accounts receivable | ||
Other accounts receivable | 24,293 | 13,573 |
Other accounts receivable - trade | Non-member electric sales | ||
Accounts receivable | ||
Other accounts receivable | 8,796 | 5,493 |
Other accounts receivable - trade | Coal Sales | ||
Accounts receivable | ||
Other accounts receivable | 1,446 | |
Other accounts receivable - trade | Other | ||
Accounts receivable | ||
Other accounts receivable | 15,497 | 6,634 |
Other accounts receivable, non-trade | ||
Accounts receivable | ||
Other accounts receivable | 7,180 | $ 2,461 |
Other operating revenue | ||
Contract liabilities | ||
Contract liabilities recognized | $ 600 |
OTHER DEFERRED CHARGES (Details
OTHER DEFERRED CHARGES (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016instrument | Sep. 30, 2018USD ($) | Dec. 31, 2017USD ($) | |
Other deferred charges | |||
Regulatory liabilities | $ 89,872 | $ 81,824 | |
Preliminary surveys and investigations | 20,254 | 19,737 | |
Advances to operating agents of jointly owned facilities | 12,620 | 10,740 | |
Interest rate swap | 12,641 | 4,311 | |
Other | 2,685 | 3,704 | |
Total other deferred charges | 48,200 | 38,492 | |
Interest rate swaps, realized gain | |||
Other deferred charges | |||
Regulatory liabilities | 4,332 | 4,614 | |
Interest rate swap - unrealized gain | |||
Other deferred charges | |||
Regulatory liabilities | $ 12,641 | $ 4,311 | |
Interest rate swaps | |||
Other deferred charges | |||
Number of instruments entered into | instrument | 1 |
LONG-TERM DEBT - Other Informat
LONG-TERM DEBT - Other Information (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Unsecured debt | ||
Unsecured notes | $ 36,200 | |
Credit facility information | ||
Outstanding borrowings | 3,197,478 | $ 3,211,421 |
Revolving Credit Agreement | ||
Credit facility information | ||
Maximum borrowing capacity | 650,000 | |
Outstanding borrowings | 0 | |
Available borrowing capacity | 443,000 | |
Commercial Paper | Revolving Credit Agreement | ||
Credit facility information | ||
Available borrowing capacity | $ 293,000 |
LONG-TERM DEBT - Components (De
LONG-TERM DEBT - Components (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Long-term debt, components | ||
Total debt | $ 3,197,478 | $ 3,211,421 |
Less debt issuance costs | (20,806) | (21,720) |
Less debt discounts | (10,196) | (10,360) |
Plus debt premiums | 17,726 | 18,949 |
Total debt adjusted for debt issuance costs, discounts and premiums | 3,184,202 | 3,198,290 |
Less current maturities | (97,601) | (78,004) |
Long-term debt | $ 3,086,601 | $ 3,120,286 |
LONG-TERM DEBT - Interest Rate
LONG-TERM DEBT - Interest Rate Swaps (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Interest rate swaps | ||
Regulatory Liabilities | $ 89,872 | $ 81,824 |
Interest Rate Swap - June 2016 | ||
Interest rate swaps | ||
Notional Amount | $ 80,000 | |
Fixed Rate | 2.304% | |
Benchmark Interest Rate | 30 year - LIBOR | |
Effective Date | Jun. 1, 2019 | |
Maturity Date | Jun. 1, 2049 | |
First Mortgage Obligations, Series 2017A , Tranche 1, 3.34%, due through 2029 | ||
Interest rate swaps | ||
Term of issuance | 12 years | |
Interest rate swaps, realized gain | ||
Interest rate swaps | ||
Regulatory Liabilities | $ 4,332 | $ 4,614 |
SHORT-TERM BORROWINGS (Details)
SHORT-TERM BORROWINGS (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Short-term borrowings | ||
Amount outstanding | $ 206,197 | $ 144,667 |
Commercial Paper | ||
Short-term borrowings | ||
Maximum amount per commercial paper sublimit | 500,000 | |
Amount outstanding | $ 206,197 | $ 144,667 |
Weighted average interest rate | 2.29% | 1.52% |
Commercial Paper | Maximum | ||
Short-term borrowings | ||
Term of issuance | 397 days | |
Revolving Credit Agreement | ||
Short-term borrowings | ||
Available borrowing capacity | $ 443,000 | |
Revolving Credit Agreement | Commercial Paper | ||
Short-term borrowings | ||
Available borrowing capacity | $ 293,000 |
ASSET RETIREMENT OBLIGATIONS (D
ASSET RETIREMENT OBLIGATIONS (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Aggregate carrying amounts of asset retirement obligations | ||
Asset retirement obligation at beginning of period | $ 56,855 | |
Liabilities incurred | 1,421 | |
Liabilities settled | (3,837) | |
Accretion expense | 2,863 | |
Change in cash flow estimate | (8,257) | |
Asset retirement obligation at end of period | 49,045 | |
Less current asset retirement obligations | (1,144) | $ (3,087) |
Long-term asset retirement obligations at end of period | $ 47,901 | $ 53,768 |
OTHER DEFERRED CREDITS AND OT_3
OTHER DEFERRED CREDITS AND OTHER LIABILITIES (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Deferred credits and other liabilities | ||
Transmission easements | $ 21,067 | $ 21,337 |
Contract liabilities (unearned revenue) - noncurrent | 7,257 | 6,673 |
Customer deposits | 2,434 | 2,898 |
Other | 20,942 | 22,488 |
Total other deferred credits and other liabilities | 51,700 | 53,396 |
Transmission Right of Way Easements | ||
Deferred credits and other liabilities | ||
Total due for easement right of way | 32,900 | |
Other Deferred Credits and Other Liabilities | Transmission Right of Way Easements | ||
Deferred credits and other liabilities | ||
Transmission easements | $ 21,100 | $ 21,300 |
EMPLOYEE BENEFIT PLANS - Postre
EMPLOYEE BENEFIT PLANS - Postretirement Benefits Other Than Pensions, Plans, Amendments and Obligations (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($)plan | |
Postretirement medical benefit and postemployment medical benefit obligations | |
Threshold percentage, unrecognized amount of actuarial gains and losses as a percentage of projected benefit obligation | 10.00% |
Medical Plans | |
Postretirement medical benefit and postemployment medical benefit obligations | |
Total postretirement and/or postemployment medical obligations at end of period | $ 9,180 |
Postretirement Medical Benefit Plans | |
Postretirement medical benefit and postemployment medical benefit obligations | |
Postretirement medical benefit obligation at beginning of year | 8,455 |
Service cost | 456 |
Interest cost | 211 |
Benefit payments (net of contributions by participants) | (309) |
Total postretirement and/or postemployment medical obligations at end of period | 8,813 |
Postemployment Medical Benefit Plans | |
Postretirement medical benefit and postemployment medical benefit obligations | |
Total postretirement and/or postemployment medical obligations at end of period | $ 367 |
Non-bargaining unit employees | Medical Plans | |
POSTRETIREMENT BENEFITS OTHER THAN PENSIONS | |
Number of plans | plan | 3 |
Non-bargaining unit employees | Medical Plans | Maximum | |
POSTRETIREMENT BENEFITS OTHER THAN PENSIONS | |
Qualifying age | 65 years |
Non-bargaining unit employees | Postretirement Medical Benefit Plans | |
POSTRETIREMENT BENEFITS OTHER THAN PENSIONS | |
Number of plans | plan | 2 |
Non-bargaining unit employees | Postretirement Medical Benefit Plans | Minimum | |
POSTRETIREMENT BENEFITS OTHER THAN PENSIONS | |
Qualifying age | 55 years |
Non-bargaining unit employees | Postemployment Medical Benefit Plans | |
POSTRETIREMENT BENEFITS OTHER THAN PENSIONS | |
Number of plans | plan | 3 |
EMPLOYEE BENEFIT PLANS - Post_2
EMPLOYEE BENEFIT PLANS - Postretirement Benefits Other Than Pensions, Actuarial Gains and Losses, and Assumptions (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Net unrecognized actuarial gains and losses related to the postretirement medical benefit obligation are included in accumulated other comprehensive income | |
Amounts included in accumulated other comprehensive income at beginning of period | $ (369) |
Amortization of prior period cost into other income (expense) | (59) |
Amounts included in accumulated other comprehensive income at end of period | $ (428) |
REVENUE - Member (Details)
REVENUE - Member (Details) | 9 Months Ended |
Sep. 30, 2018itemcustomer | |
Member electric sales | |
Number of billing components of Class A rate schedule for electric power sales to Members | item | 2 |
Member Contracts Extending Through 2050 | |
Member electric sales | |
Number of contracts | 42 |
Member Contracts Extending Through 2040 | |
Member electric sales | |
Number of contracts | 1 |
REVENUE - Non-member (Details)
REVENUE - Non-member (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)contract | Sep. 30, 2017USD ($) | |
Disaggregation of revenue | ||||
Other | $ 13,666 | $ 24,355 | $ 38,337 | $ 66,540 |
Revenues | 398,157 | 396,511 | 1,044,178 | 1,073,841 |
Non-member electric sales and other operating revenue | ||||
Disaggregation of revenue | ||||
Revenues | 44,670 | 101,262 | ||
Non-member electric sales and other operating revenue | Calculated under Revenue Guidance in Effect before Topic 606 | ||||
Disaggregation of revenue | ||||
Revenues | 49,709 | 152,365 | ||
Non-member electric sales | ||||
Disaggregation of revenue | ||||
Revenue from contract with customer | 31,004 | 25,354 | 62,925 | 85,825 |
Non-member electric sales | Long-term contracts | ||||
Disaggregation of revenue | ||||
Revenue from contract with customer | 11,985 | $ 34,457 | ||
Number of contracts | contract | 2 | |||
Non-member electric sales | Long-term contracts | Calculated under Revenue Guidance in Effect before Topic 606 | ||||
Disaggregation of revenue | ||||
Revenue from contract with customer | 14,441 | 49,632 | ||
Non-member electric sales | Short-term contracts | ||||
Disaggregation of revenue | ||||
Revenue from contract with customer | 19,019 | $ 28,468 | ||
Non-member electric sales | Short-term contracts | Calculated under Revenue Guidance in Effect before Topic 606 | ||||
Disaggregation of revenue | ||||
Revenue from contract with customer | 10,913 | 21,193 | ||
Recognition of deferred revenue | Calculated under Revenue Guidance in Effect before Topic 606 | ||||
Disaggregation of revenue | ||||
Revenue from contract with customer | 15,000 | |||
Coal Sales | ||||
Disaggregation of revenue | ||||
Revenue from contract with customer | 1,075 | 1,075 | ||
Coal Sales | Calculated under Revenue Guidance in Effect before Topic 606 | ||||
Disaggregation of revenue | ||||
Revenue from contract with customer | 11,664 | 29,194 | ||
Other | ||||
Disaggregation of revenue | ||||
Other | $ 12,591 | $ 37,262 | ||
Other | Calculated under Revenue Guidance in Effect before Topic 606 | ||||
Disaggregation of revenue | ||||
Other | $ 12,691 | $ 37,346 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
INCOME TAXES | ||||
Income tax benefit | $ 151 | $ 259 | $ 453 | $ 863 |
FAIR VALUE (Details)
FAIR VALUE (Details) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018USD ($) | Dec. 31, 2016instrument | Dec. 31, 2017USD ($) | |
Fair value: | |||
Regulatory liabilities | $ 89,872 | $ 81,824 | |
Principal Amount | |||
Fair value: | |||
Marketable securities | 673 | 1,007 | |
Long-term debt | 3,197,478 | 3,211,421 | |
Estimated Fair Value | |||
Fair value: | |||
Cash and cash equivalents | 115,500 | 109,400 | |
Estimated Fair Value | Level 2 | |||
Fair value: | |||
Long-term debt | 3,351,442 | 3,600,650 | |
Estimated Fair Value | Recurring | Level 1 | |||
Fair value: | |||
Marketable securities | 789 | 1,166 | |
Interest rate swaps, realized gain | |||
Fair value: | |||
Regulatory liabilities | 4,332 | 4,614 | |
Interest rate swap - unrealized gain | |||
Fair value: | |||
Regulatory liabilities | $ 12,641 | $ 4,311 | |
First Mortgage Obligations, Series 2017A , Tranche 1, 3.34%, due through 2029 | |||
Fair value: | |||
Term of issuance | 12 years | ||
Interest rate swaps | |||
Fair value: | |||
Number of instruments entered into | instrument | 1 |
VARIABLE INTEREST ENTITIES - Co
VARIABLE INTEREST ENTITIES - Consolidated Entities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Consolidated Variable Interest Entities | |||||
Noncontrolling interest included in consolidated statements of financial position | $ 109,336 | $ 109,336 | $ 111,295 | ||
Interest expense | $ 38,377 | $ 37,289 | $ 115,380 | $ 109,937 | |
Primary Beneficiary | Springerville Partnership | |||||
Consolidated Variable Interest Entities | |||||
Equity interest (as a percent) | 51.00% | ||||
General partner interest (as a percent) | 1.00% | ||||
Ownership interest held by noncontrolling interest (as a percent) | 49.00% | 49.00% | 49.00% | ||
Noncontrolling interest included in consolidated statements of financial position | $ 109,300 | $ 109,300 | $ 111,300 | ||
Springerville Partnership | Springerville Unit 3 Holding LLC | |||||
Consolidated Variable Interest Entities | |||||
Ownership interest held by parent (as a percent) | 100.00% | 100.00% | |||
Springerville Partnership | Primary Beneficiary | |||||
Consolidated Variable Interest Entities | |||||
Depreciation and amortization | $ 4,500 | $ 13,000 | 15,100 | ||
Interest expense | 6,900 | $ 7,100 | 20,700 | $ 21,300 | |
Springerville Partnership | Primary Beneficiary | Electric Plant | |||||
Consolidated Variable Interest Entities | |||||
Assets of variable interest entity included in consolidated statements of financial position | 799,000 | 799,000 | 812,700 | ||
Springerville Partnership | Primary Beneficiary | Long-term debt | |||||
Consolidated Variable Interest Entities | |||||
Liabilities of variable interest entity included in consolidated statements of financial position | 416,400 | 416,400 | 431,300 | ||
Springerville Partnership | Primary Beneficiary | Accrued interest included in long-term debt | |||||
Consolidated Variable Interest Entities | |||||
Liabilities of variable interest entity included in consolidated statements of financial position | $ 4,800 | $ 4,800 | $ 12,400 | ||
Springerville Partnership | Primary Beneficiary | Springerville Unit 3 Lease | |||||
Consolidated Variable Interest Entities | |||||
Percentage of financial and other support provided | 100.00% |
VARIABLE INTEREST ENTITIES - Un
VARIABLE INTEREST ENTITIES - Unconsolidated Entities (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Unconsolidated Variable Interest Entities | ||
Investments in other associations | $ 144,858 | $ 143,608 |
Western Fuels Association | Unconsolidated Variable Interest Entity - not primary beneficiary | Investments in other associations | ||
Unconsolidated Variable Interest Entities | ||
Investments in other associations | $ 2,400 | 2,400 |
MBPP | ||
Unconsolidated Variable Interest Entities | ||
Tri-State share (as a percent) | 27.13% | |
WFW | Western Fuels Association | Class AA shares | ||
Unconsolidated Variable Interest Entities | ||
Ownership interest held by parent (as a percent) | 100.00% | |
WFW | Western Fuels Association | Class BB Shares | ||
Unconsolidated Variable Interest Entities | ||
Ownership interest held by parent (as a percent) | 75.00% | |
WFW | MBPP | Class BB Shares | ||
Unconsolidated Variable Interest Entities | ||
Ownership interest held by noncontrolling interest (as a percent) | 25.00% | |
MBPP | Unconsolidated Variable Interest Entity - not primary beneficiary | ||
Unconsolidated Variable Interest Entities | ||
Tri-State share (as a percent) | 27.13% | |
Trapper Mining | Unconsolidated Variable Interest Entity - not primary beneficiary | ||
Unconsolidated Variable Interest Entities | ||
Investment in coal mine | $ 15,200 | $ 15,000 |
Tri-State share (as a percent) | 26.57% |
LEGAL - Las Conchas Fire (Detai
LEGAL - Las Conchas Fire (Details) - Damages from Las Conchas fire - plaintiff | Oct. 28, 2015 | Jun. 30, 2011 |
Litigation information | ||
Number of plaintiff groups | 6 | |
Pending litigation | ||
Litigation information | ||
Percentage negligent | 20.00% | |
Pending litigation | JMEC | ||
Litigation information | ||
Percentage negligent | 75.00% | |
Pending litigation | United States Forest Service | ||
Litigation information | ||
Percentage negligent | 5.00% |
LEGAL - Other Legal (Details)
LEGAL - Other Legal (Details) - Another utility company | 9 Months Ended |
Sep. 30, 2018MW | |
Term of contract | 30 years |
Amount of capacity sold (in megawatts) | 25 |