Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 10, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 333-212006 | |
Entity Registrant Name | TRI-STATE GENERATION AND TRANSMISSION ASSOCIATION, INC. | |
Entity Incorporation, State or Country Code | CO | |
Entity Tax Identification Number | 84-0464189 | |
Entity Address, Address Line One | 1100 West 116th Avenue | |
Entity Address, City or Town | Westminster, | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80234 | |
City Area Code | 303 | |
Local Phone Number | 452-6111 | |
Entity Current Reporting Status | No | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 0 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001637880 | |
Amendment Flag | false |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Electric plant | ||
In service | $ 6,284,666 | $ 6,254,652 |
Construction work in progress | 100,977 | 89,447 |
Total electric plant | 6,385,643 | 6,344,099 |
Less allowances for depreciation and amortization | (3,027,468) | (2,991,393) |
Net electric plant | 3,358,175 | 3,352,706 |
Other plant | 415,786 | 456,924 |
Less allowances for depreciation, amortization and depletion | (160,357) | (133,012) |
Net other plant | 255,429 | 323,912 |
Total property, plant and equipment | 3,613,604 | 3,676,618 |
Other assets and investments | ||
Investments in other associations | 164,613 | 162,975 |
Investments in and advances to coal mines | 2,448 | 2,799 |
Restricted cash and investments | 4,241 | 4,682 |
Other noncurrent assets | 16,500 | 14,889 |
Total other assets and investments | 187,802 | 185,345 |
Current assets | ||
Cash and cash equivalents | 97,602 | 127,187 |
Restricted cash and investments | 411 | 205 |
Deposits and advances | 36,115 | 32,012 |
Accounts receivable—Utility Members | 102,286 | 96,637 |
Other accounts receivable | 23,694 | 20,570 |
Electric plant held for sale | 0 | 4,877 |
Coal inventory | 58,312 | 55,762 |
Materials and supplies | 84,498 | 82,119 |
Total current assets | 402,918 | 419,369 |
Deferred charges | ||
Regulatory assets | 675,964 | 710,268 |
Prepayment—NRECA Retirement Security Plan | 17,460 | 21,490 |
Other | 40,027 | 33,646 |
Total deferred charges | 733,451 | 765,404 |
Total assets | 4,937,775 | 5,046,736 |
Capitalization | ||
Patronage capital equity | 1,009,213 | 978,519 |
Accumulated other comprehensive loss | (5,940) | (5,714) |
Noncontrolling interest | 117,334 | 114,851 |
Total equity | 1,120,607 | 1,087,656 |
Long-term debt | 3,110,546 | 3,200,181 |
Total capitalization | 4,231,153 | 4,287,837 |
Current liabilities | ||
Utility Member advances | 19,091 | 16,592 |
Accounts payable | 112,770 | 98,654 |
Accrued expenses | 31,532 | 40,736 |
Current asset retirement obligations | 6,511 | 11,044 |
Accrued interest | 44,918 | 27,520 |
Accrued property taxes | 26,939 | 32,794 |
Current maturities of long-term debt | 91,165 | 87,587 |
Total current liabilities | 332,926 | 314,927 |
Deferred credits and other liabilities | ||
Regulatory liabilities | 175,231 | 224,953 |
Deferred income tax liability | 19,470 | 19,591 |
Asset retirement and environmental reclamation obligations | 80,689 | 127,045 |
Other | 78,765 | 54,600 |
Total deferred credits and other liabilities | 354,155 | 426,189 |
Accumulated postretirement benefit and postemployment obligations | 19,541 | 17,783 |
Total equity and liabilities | $ 4,937,775 | $ 5,046,736 |
Consolidated Statements of Oper
Consolidated Statements of Operations (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Operating revenues | ||||
Other | $ 21,068 | $ 16,226 | $ 51,780 | $ 37,150 |
Operating revenues | 415,863 | 401,601 | 1,068,137 | 1,034,723 |
Operating expenses | ||||
Purchased power | 112,540 | 103,136 | 286,109 | 260,804 |
Fuel | 76,332 | 65,061 | 182,749 | 165,679 |
Production | 41,543 | 39,698 | 135,285 | 122,595 |
Transmission | 50,152 | 43,989 | 136,771 | 127,175 |
General and administrative | 15,916 | 17,081 | 42,400 | 49,337 |
Depreciation, amortization and depletion | 44,990 | 45,775 | 144,228 | 137,110 |
Coal mining | 1,492 | 4,200 | 3,999 | 8,021 |
Other | 1,562 | 2,691 | 5,395 | 13,429 |
Operating expenses | 344,527 | 321,631 | 936,936 | 884,150 |
Operating margins | 71,336 | 79,970 | 131,201 | 150,573 |
Other income | ||||
Interest | 897 | 959 | 2,681 | 3,248 |
Capital credits from cooperatives | 59 | 1,186 | 4,334 | 4,674 |
Other income | 1,358 | 197 | 3,247 | 348 |
Total other income | 2,314 | 2,342 | 10,262 | 8,270 |
Interest expense | ||||
Interest | 35,739 | 37,673 | 107,946 | 114,533 |
Interest charged during construction | (861) | (1,460) | (2,839) | (5,022) |
Interest expense, net of amounts capitalized | 34,878 | 36,213 | 105,107 | 109,511 |
Income tax expense (benefit) | 267 | (154) | 486 | (484) |
Net margins including noncontrolling interest | 38,505 | 46,253 | 35,870 | 49,816 |
Net margin attributable to noncontrolling interest | (1,765) | (1,424) | (5,176) | (4,164) |
Net margins attributable to the Association | 36,740 | 44,829 | 30,694 | 45,652 |
Utility Member electric sales | ||||
Operating revenues | ||||
Operating revenues | 350,344 | 346,769 | 897,587 | 926,529 |
Non-member electric sales | ||||
Operating revenues | ||||
Operating revenues | $ 44,451 | $ 38,606 | $ 118,770 | $ 71,044 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net margins including noncontrolling interest | $ 38,505 | $ 46,253 | $ 35,870 | $ 49,816 |
Other comprehensive loss: | ||||
Unrealized loss on securities available for sale | (15) | 0 | (56) | 0 |
Amortization of actuarial loss on postretirement benefit obligation included in net margin | 220 | 177 | 951 | 1,287 |
Unrecognized prior service cost | 0 | 0 | (1,121) | (7,373) |
Other comprehensive income (loss) | 205 | 177 | (226) | (6,086) |
Comprehensive income including noncontrolling interest | 38,710 | 46,430 | 35,644 | 43,730 |
Net comprehensive income attributable to noncontrolling interest | (1,765) | (1,424) | (5,176) | (4,164) |
Comprehensive income attributable to the Association | $ 36,945 | $ 45,006 | $ 30,468 | $ 39,566 |
Consolidated Statements of Equi
Consolidated Statements of Equity (unaudited) - USD ($) $ in Thousands | Total | Patronage capital | Accumulated other comprehensive income (loss) | Noncontrolling interest |
Equity at beginning of period at Dec. 31, 2019 | $ 1,031,063 | $ (1,518) | $ 111,717 | |
Change in Equity | ||||
Net margins attributable to the Association | $ 45,652 | 45,652 | ||
Retirement of patronage capital | (47,665) | |||
Unrealized loss on securities available for sale | 0 | |||
Amortization of prior service cost | 1,287 | 1,287 | ||
Unrecognized prior service cost | (7,373) | (7,373) | ||
Net comprehensive income attributable to noncontrolling interest | 4,164 | 4,164 | ||
Equity distribution to noncontrolling interest | (2,456) | |||
Equity at end of period at Sep. 30, 2020 | 1,134,871 | 1,029,050 | (7,604) | 113,425 |
Equity at beginning of period at Jun. 30, 2020 | 984,221 | (7,781) | 113,189 | |
Change in Equity | ||||
Net margins attributable to the Association | 44,829 | 44,829 | ||
Unrealized loss on securities available for sale | 0 | (15) | ||
Amortization of prior service cost | 177 | 177 | ||
Unrecognized prior service cost | 0 | |||
Net comprehensive income attributable to noncontrolling interest | 1,424 | 1,424 | ||
Equity distribution to noncontrolling interest | (1,188) | |||
Equity at end of period at Sep. 30, 2020 | 1,134,871 | 1,029,050 | (7,604) | 113,425 |
Equity at beginning of period at Dec. 31, 2020 | 1,087,656 | 978,519 | (5,714) | 114,851 |
Change in Equity | ||||
Net margins attributable to the Association | 30,694 | 30,694 | ||
Unrealized loss on securities available for sale | (56) | (56) | ||
Amortization of prior service cost | 951 | 951 | ||
Unrecognized prior service cost | (1,121) | (1,121) | ||
Net comprehensive income attributable to noncontrolling interest | 5,176 | 5,176 | ||
Equity distribution to noncontrolling interest | (2,693) | |||
Equity at end of period at Sep. 30, 2021 | 1,120,607 | 1,009,213 | (5,940) | 117,334 |
Equity at beginning of period at Jun. 30, 2021 | 972,473 | (6,145) | 115,569 | |
Change in Equity | ||||
Net margins attributable to the Association | 36,740 | 36,740 | ||
Unrealized loss on securities available for sale | (15) | |||
Amortization of prior service cost | 220 | 220 | ||
Unrecognized prior service cost | 0 | |||
Net comprehensive income attributable to noncontrolling interest | 1,765 | 1,765 | ||
Equity at end of period at Sep. 30, 2021 | $ 1,120,607 | $ 1,009,213 | $ (5,940) | $ 117,334 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Operating activities | ||
Net margins including noncontrolling interest | $ 35,870 | $ 49,816 |
Adjustments to reconcile net margins to net cash provided by operating activities: | ||
Depreciation, amortization and depletion | 144,228 | 137,110 |
Amortization of NRECA Retirement Security Plan prepayment | 4,029 | 4,029 |
Amortization of debt issuance costs | 1,867 | 1,832 |
Impairment loss | 0 | 259,761 |
Deferred impairment loss and other closure costs | 0 | (268,163) |
Recognition of deferred revenue | (49,364) | 0 |
Deferred membership withdrawal income | 0 | 110,165 |
Deposits associated with generator interconnection requests | 17,130 | 0 |
Capital credit allocations from cooperatives and income from coal mines under (over) refund distributions | (1,180) | 2,813 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (12,991) | 5,844 |
Coal inventory | (2,064) | (5,688) |
Materials and supplies | (1,977) | 290 |
Accounts payable and accrued expenses | 27,258 | 9,337 |
Accrued interest | 17,397 | 16,113 |
Accrued property taxes | (5,856) | (1,043) |
Other | (3,654) | (16,323) |
Net cash provided by operating activities | 170,693 | 305,893 |
Investing activities | ||
Purchases of plant | (83,405) | (100,821) |
Sale of electric plant | 0 | 26,000 |
Changes in deferred charges | (15,734) | (4,532) |
Proceeds from other investments | 72 | 68 |
Net cash used in investing activities | (99,067) | (79,285) |
Financing activities | ||
Changes in Member advances | 2,499 | (1,520) |
Payments of long-term debt | (87,138) | (277,119) |
Proceeds from issuance of long-term debt | 0 | 425,000 |
Debt issuance costs | 0 | (637) |
Change in short-term borrowings, net | 0 | (252,323) |
Retirement of patronage capital | (13,705) | (60,991) |
Equity distribution to noncontrolling interest | (2,693) | (2,456) |
Other | (409) | (279) |
Net cash used in financing activities | (101,446) | (170,325) |
Net increase (decrease) in cash, cash equivalents and restricted cash and investments | (29,820) | 56,283 |
Cash, cash equivalents and restricted cash and investments – beginning | 132,074 | 113,768 |
Cash, cash equivalents and restricted cash and investments – ending | 102,254 | 170,051 |
Supplemental cash flow information: | ||
Cash paid for interest | 89,119 | 97,218 |
Cash paid for income taxes | 0 | 0 |
Supplemental disclosure of noncash investing and financing activities: | ||
Change in plant expenditures included in accounts payable | $ 2,730 | $ 2,217 |
PRESENTATION OF FINANCIAL INFOR
PRESENTATION OF FINANCIAL INFORMATION | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
PRESENTATION OF FINANCIAL INFORMATION | 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, 2020 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, 2021, results of operations for the three and nine months ended September 30, 2021 and 2020, and cash flows for the nine months ended September 30, 2021 and 2020 are not necessarily indicative of the results that may be expected for an entire year or any other period. Basis of Consolidation We are a taxable wholesale electric power generation and transmission cooperative operating on a not-for-profit basis serving large portions of Colorado, Nebraska, New Mexico and Wyoming. We were incorporated under the laws of the State of Colorado in 1952. We have three classes of membership: Class A - utility full requirements members, Class B - utility partial requirements members, and non-utility members. We have forty-two electric distribution member systems who are Class A members to which we provide electric power pursuant to long-term wholesale electric service contracts. We currently have no Class B members. We have three non-utility members (“Non-Utility Members”). Our Class A members and any Class B members are collectively referred to as our “Utility Members.” Our Class A members, any Class B members, and Non-Utility Members are collectively referred to as our “Members.” The addition of Non-Utility Members in 2019 and specifically the addition of MIECO, Inc. on September 3, 2019 removed the exemption from the Federal Energy Regulatory Commission’s (“FERC”) regulation for us, thus subjecting us to full rate and transmission jurisdiction by FERC effective September 3, 2019. Our stated rate to our Class A members was filed at FERC on December 23, 2019 and was accepted by FERC on March 20, 2020. On August 2, 2021, FERC approved our settlement agreement related to our stated rate to our Class A members. See Note 17 – Legal. We comply with the Uniform System of Accounts as prescribed by FERC. In conformity with GAAP, the accounting policies and practices applied by us in the determination of rates are also employed for financial reporting purposes. The accompanying financial statements reflect the consolidated 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. We have eliminated all significant intercompany balances and transactions in consolidation. In August 2021, Thermo Cogeneration Partnership, LP and its related entities merged into Tri-State. There was no impact to our consolidated financial statements as a result of this merger. 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”)). 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 August 1, 2021, our ownership share in MBPP increased to 28.5 percent due to our acquisition of Wyoming Municipal Power Agency’s ownership share in MBPP. The purchase represents an additional 1.37 percent undivided ownership interest in MBPP, which includes transmission and water rights and approximately 23 megawatts of generation . Our share in each jointly owned facility is as follows as of September 30, 2021 (dollars in thousands): Tri-State Electric Accumulated Construction Yampa Project - Craig Generating Station Units 1 and 2 24.00 % $ 391,695 $ 253,183 $ 790 MBPP - Laramie River Station 28.50 % 523,438 334,827 3,453 Total $ 915,133 $ 588,010 $ 4,243 Recently Adopted Accounting Pronouncements On December 18, 2019, the Financial Accounting Standards Board issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which may impact both interim and annual reporting periods. This guidance is required to be adopted by public filers for years beginning after December 15, 2020. Under previous guidance, when there was a change in tax law (such as a change in the statutory tax rate), ASC 740 required the impact on deferred taxes to be recognized in the reporting period that included the enactment date. However, the interim period guidance under ASC 740-270 required that the effect of a change in tax rate be recognized in the estimated annual effective tax rate at enactment date or the effective date, whichever occurred later. Thus, in situations where a rate change was enacted in one interim period but effective in another interim period, complexities arose with respect to deferred tax balances and taxes payable. ASU 2019-12 modifies the previous approach so that changes in tax law should be reflected in the estimated annual rate in the period of enactment. This better aligns the interim reporting framework with the overall guidance with respect to changes in tax law. As described in Note 13 - Income Taxes, federal legislation has been proposed to increase the federal corporate income tax rate. If that were to occur, we would report the impact pursuant to ASU 2019-12. We do not anticipate having any other material financial reporting impacts caused by ASU 2019-12 . |
ACCOUNTING FOR RATE REGULATION
ACCOUNTING FOR RATE REGULATION | 9 Months Ended |
Sep. 30, 2021 | |
Regulatory Assets and Liabilities Disclosure [Abstract] | |
ACCOUNTING FOR RATE REGULATION | ACCOUNTING FOR RATE REGULATIONIn accordance with the accounting requirements related to regulated operations, some revenues and expenses have been deferred at the discretion of our Board of Directors (“Board”), subject to FERC approval, if based on regulatory orders or other available evidence, 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 Utility Members based on rates approved by the applicable authority. Regulatory liabilities represent probable future reductions in rates associated with amounts that are expected to be refunded to our Utility Members based on rates approved by the applicable authority. Expected recovery of deferred costs and returning deferred credits are based on specific ratemaking decisions by FERC or precedent for each item. We recognize regulatory assets as expenses and regulatory liabilities as operating revenue, other income, or a reduction in expense concurrent with their recovery through rates. Regulatory assets and liabilities are as follows (dollars in thousands): September 30, 2021 December 31, 2020 Regulatory assets Deferred income tax expense (1) $ 19,035 $ 19,641 Deferred prepaid lease expense – Springerville Unit 3 Lease (2) 79,706 81,424 Goodwill – J.M. Shafer (3) 44,159 46,296 Goodwill – Colowyo Coal (4) 35,386 36,161 Deferred debt prepayment transaction costs (5) 125,831 132,302 Deferred Holcomb expansion impairment loss (6) 85,313 88,819 Unrecovered plant (7) 286,534 305,625 Total regulatory assets 675,964 710,268 Regulatory liabilities Interest rate swap - realized gain (8) and other 2,935 3,293 Deferred revenues (9) 14,353 63,717 Membership withdrawal (10) 157,943 157,943 Total regulatory liabilities 175,231 224,953 Net regulatory asset $ 500,733 $ 485,315 (1) Represents a regulatory asset or liability associated with deferred income tax expense that is expected to result in income taxes payable in future periods. Our subsidiaries are not subject to FERC regulation and continue to use a flow-through method for recognizing deferred income taxes whereby changes in deferred tax assets or liabilities result in the establishment of a regulatory asset or liability, as approved by our Board. (2) 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 Utility Members through rates. (3) 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 Utility Members through rates. (4) 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 Utility Members through rates. (5) 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 21.4-year period ending in 2036 and recovered from our Utility Members through rates. (6) 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 regulatory asset for the deferred impairment loss is being amortized to depreciation, amortization and depletion expense in the amount of $4.7 million annually over the 20-year period ending in 2039 and recovered from our Utility Members through rates. (7) Represents deferral of the impairment losses related to the early retirement of the Nucla and Escalante Generating Stations. The deferred impairment loss for Nucla Generating Station is being amortized to depreciation, amortization and depletion expense in the amount of $9.1 million annually through December 2022 and recovered from our Utility Members through rates. The deferred impairment loss for Escalante Generating Station is being amortized to depreciation, amortization and depletion expense in the amount of $11.3 million annually over the 25-year period ending in December 2045, which was the depreciable life of Escalante Generating Station, and recovered from our Utility Members through rates. The annual amortization approximates the former annual Escalante Generating Station depreciation for the remaining life of the asset. (8) Represents deferral of a realized gain of $4.6 million related to the October 2017 settlement of a forward starting interest rate swap. 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 and refunded to Utility Members through reduced rates when recognized in future periods. (9) Represents deferral of the recognition of non-member electric sales revenues. These deferred non-member electric sales revenues will be refunded to Utility Members as part of our rate stabilization measures when recognized in non-member electric sales revenue in future periods. (10) Represents the deferral of the recognition of other income related to the withdrawal of former Utility Members from membership in us. The total deferred membership withdrawal income will be refunded to Utility Members as part of our rate stabilization measures when recognized in other income in future periods. |
INVESTMENTS IN OTHER ASSOCIATIO
INVESTMENTS IN OTHER ASSOCIATIONS | 9 Months Ended |
Sep. 30, 2021 | |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | |
INVESTMENTS IN OTHER ASSOCIATIONS | 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, 2021 December 31, 2020 Basin Electric Power Cooperative $ 118,295 $ 118,295 National Rural Utilities Cooperative Finance Corporation - patronage capital 12,076 11,933 National Rural Utilities Cooperative Finance Corporation - capital term certificates 15,149 15,221 CoBank, ACB 12,985 11,141 Other 6,108 6,385 Investments in other associations $ 164,613 $ 162,975 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, 2021 or during 2020. |
CASH, CASH EQUIVALENTS AND REST
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AND INVESTMENTS | 9 Months Ended |
Sep. 30, 2021 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AND INVESTMENTS | 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 amounts 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 amounts 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, 2021 December 31, 2020 Cash and cash equivalents $ 97,602 $ 127,187 Restricted cash and investments - current 411 205 Restricted cash and investments - noncurrent 4,241 4,682 Cash, cash equivalents and restricted cash and investments $ 102,254 $ 132,074 |
CONTRACT ASSETS AND CONTRACT LI
CONTRACT ASSETS AND CONTRACT LIABILITIES | 9 Months Ended |
Sep. 30, 2021 | |
Change in Contract with Customer, Asset and Liability [Abstract] | |
CONTRACT ASSETS AND CONTRACT LIABILITIES | CONTRACT ASSETS AND CONTRACT LIABILITIES 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 12 – 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 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, 2021, we recognized $0.4 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, 2021 December 31, 2020 Accounts receivable - Utility Members $ 102,286 $ 96,637 Other accounts receivable - trade: Non-member electric sales 8,277 5,231 Other 12,771 9,785 Total other accounts receivable - trade 21,048 15,016 Other accounts receivable - nontrade 2,646 5,554 Total other accounts receivable $ 23,694 $ 20,570 Contract liabilities (unearned revenue) $ 5,590 $ 6,025 |
OTHER DEFERRED CHARGES
OTHER DEFERRED CHARGES | 9 Months Ended |
Sep. 30, 2021 | |
Deferred Costs [Abstract] | |
OTHER DEFERRED CHARGES | OTHER DEFERRED CHARGES The following other deferred charges are reflected on our consolidated statements of financial position (dollars in thousands): September 30, 2021 December 31, 2020 Preliminary surveys and investigations $ 11,371 $ 12,886 Advances to operating agents of jointly owned facilities 7,770 2,071 Operating lease right-of-use assets 7,505 7,985 Other 13,381 10,704 Total other deferred charges $ 40,027 $ 33,646 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 Utility Members through rates subject to approval by our Board and FERC. 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. A right-of-use asset represents a lessee’s right to control the use of the underlying asset for the lease term. Right-of-use assets are included in other deferred charges and presented net of accumulated amortization. See Note 14 – Leases. |
LONG-TERM DEBT
LONG-TERM DEBT | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT We have $3.1 billion of long-term debt which consists of mortgage notes payable, pollution control revenue bonds and the Springerville certificates. 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 amount of $13.9 million as of September 30, 2021. 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 on an annual basis and an equity to capitalization ratio requirement of at least 18 percent at the end of each fiscal year. Other than the Springerville certificates that has a debt service ratio requirement of at least 1.02 on an annual basis, all other long-term debt contains a debt service ratio requirement of at least 1.10 on an annual basis. We have a secured revolving credit facility with National Rural Utilities Cooperative Finance Corporation (“CFC”), as lead arranger and administrative agent, in the amount of $650 million (“Revolving Credit Agreement”) that expires on April 25, 2023 and includes a swingline sublimit of $100 million, a letter of credit sublimit of $75 million, and a commercial paper back-up sublimit of $500 million. As of September 30, 2021, we had $650.0 million in availability under the Revolving Credit Agreement. Long-term debt consists of the following (dollars in thousands): September 30, 2021 December 31, 2020 Total debt $ 3,221,577 $ 3,308,715 Less debt issuance costs (23,723) (25,590) Less debt discounts (9,464) (9,659) Plus debt premiums 13,321 14,302 Total debt adjusted for debt issuance costs, discounts and premiums 3,201,711 3,287,768 Less current maturities (91,165) (87,587) Long-term debt $ 3,110,546 $ 3,200,181 |
SHORT-TERM BORROWINGS
SHORT-TERM BORROWINGS | 9 Months Ended |
Sep. 30, 2021 | |
Short-term Debt [Abstract] | |
SHORT-TERM BORROWINGS | 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 Revolving Credit Agreement, which is the lesser of $500 million or the amount available under our Revolving Credit Agreement. As of September 30, 2021 and December 31, 2020, we had no commercial paper outstanding. At September 30, 2021, $500.0 million of the commercial paper back-up sublimit remained available under the Revolving Credit Agreement. See Note 7 – Long-Term Debt. |
ASSET RETIREMENT AND ENVIRONMEN
ASSET RETIREMENT AND ENVIRONMENTAL RECLAMATION OBLIGATIONS | 9 Months Ended |
Sep. 30, 2021 | |
Asset Retirement Obligation Disclosure [Abstract] | |
ASSET RETIREMENT AND ENVIRONMENTAL RECLAMATION OBLIGATIONS | ASSET RETIREMENT AND ENVIRONMENTAL RECLAMATION OBLIGATIONS We account for current obligations associated with the future retirement of tangible long-lived assets and environmental reclamation 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. Environmental reclamation costs are accrued based on management’s best estimate at the end of each period of the costs expected to be incurred. Such cost estimates may include ongoing care, maintenance and monitoring costs. Changes in reclamation estimates are reflected in earnings in the period an estimate is revised. Estimates of future expenditures for environmental reclamation obligations are not discounted. Coal mines: We have asset retirement obligations for the final reclamation costs and environmental obligations for post-reclamation monitoring related to the Colowyo Mine and the New Horizon Mine. The New Horizon Mine is currently in post-reclamation monitoring. One pit at the Colowyo Mine began final reclamation in 2019 with the other remaining pits still being actively mined. Generation: We 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 and environmental reclamation obligations are as follows (dollars in thousands): Nine Months Ended 2021 Obligations at beginning of period $ 138,089 Liabilities incurred 500 Liabilities settled (4,384) Accretion expense 1,913 Change in estimate (48,918) Total obligations at end of period $ 87,200 Less current obligations at end of period (6,511) Long-term obligations at end of period $ 80,689 During 2021, we recorded a reduction of the Colowyo Mine reclamation liability of $43.8 million. This reduction was primarily related to a change in the mine plan of South Taylor pit at the Colowyo Mine. After obtaining regulatory approval, the South Taylor pit life was extended through 2027 to mine the highwall, which resulted in a lower estimated obligation at the end of the mining period. The West pit is currently in final reclamation. In 2019, we recorded an additional reclamation obligation liability of $22.4 million due to anticipated revision to the New Horizon Mine reclamation plan to accommodate an alternative post mine land use as necessary for final mine reclamation. We continue to evaluate the Colowyo Mine and New Horizon Mine post reclamation obligations and will make adjustments to these obligations as needed. 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, 2021 | |
Deferred Credits and Other Liabilities [Abstract] | |
OTHER DEFERRED CREDITS AND OTHER LIABILITIES | 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, 2021 December 31, 2020 Transmission easements $ 19,531 $ 19,983 Operating lease liabilities - noncurrent 1,675 1,590 Contract liabilities (unearned revenue) - noncurrent 3,634 3,702 Customer deposits 8,860 7,712 Financial liabilities - reclamation 12,266 12,081 Deposits associated with generator interconnection requests 22,709 — Other 10,090 9,532 Total other deferred credits and other liabilities $ 78,765 $ 54,600 In 2015, we renewed transmission right of way easements on tribal nation lands where certain of our electric transmission lines are located. $29.2 million will be paid by us for these easements from 2021 through the individual easement terms ending between 2036 and 2040. The present values for the remaining easement payments were $19.5 and $20.0 million as of September 30, 2021 and December 31, 2020, respectively, which are recorded as other deferred credits and other liabilities. A lease liability represents a lessee’s obligation to make lease payments over the lease term. The long-term portion of our lease liabilities are included in other deferred credits and other liabilities and the current portion of our lease liabilities are included in current liabilities. See Note 14 – Leases. A contract liability represents an entity’s obligation to transfer goods or services to a customer for which the entity has received consideration 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. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 9 Months Ended |
Sep. 30, 2021 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | 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, 2021, are contributory (with retiree premium contributions equivalent to employee premiums, adjusted annually) and contain other cost-sharing features such as deductibles. As of June 30, 2021, the plans ceased to provide postretirement medical benefits for employees who retire after June 30, 2021. 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): Nine Months Ended 2021 Postretirement medical benefit obligation at beginning of period $ 9,985 Service cost 451 Interest cost 194 Benefit payments (net of contributions by participants) (444) Postretirement medical benefit obligation at end of period $ 10,186 Postemployment medical benefit obligation at end of period 419 Total postretirement and postemployment medical obligations at end of period $ 10,605 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): Nine Months Ended 2021 Accumulated other comprehensive loss at beginning of period $ (841) Amortization of prior service credit into other income (59) Accumulated other comprehensive loss at end of period $ (900) Defined Benefit Plans We participate in the NRECA Pension Restoration Plan and the NRECA Executive Benefit Restoration Plan, both of which are intended to provide a supplemental benefit to the defined benefit plan for an eligible group of highly compensated employees. Eligible employees include the Chief Executive Officer and any other employees that become eligible. All our executive employees currently participate in one of the following pension restoration plans: the NRECA Pension Restoration Plan or the NRECA Executive Benefit Restoration Plan. Eligibility is determined annually and is based on January 1 base salary that exceeds the limits of the defined benefit plan. As of April 30, 2021, the plans ceased to add new participants hired after this date. The NRECA Executive Benefit Restoration Plan obligations are determined annually (during the first quarter of the subsequent year) by an NRECA actuary and are included in accumulated postretirement benefit and postemployment obligations on our consolidated statements of financial position as follows (dollars in thousands): Nine Months Ended 2021 Executive benefit restoration obligation at beginning of period $ 7,379 Service cost 270 Interest cost 165 Actuarial loss 1,121 Executive benefit restoration at end of period $ 8,935 Fair value of plan assets at beginning of period $ 6,955 Employer contributions 1,209 Actual return on plan assets $ 95 Fair value of plan assets at end of period $ 8,259 Net liability recognized at end of period $ 676 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 December 2020, we established an irrevocable trust with an independent third party to fund the NRECA Executive Benefit Restoration Plan. The trust is funded quarterly to the prior year obligation as determined by the NRECA actuary. In accordance with the accounting standard related to defined benefit pension plans, 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 executive benefit restoration obligation. The net unrecognized actuarial gains and losses related to the executive benefit restoration obligations are included in accumulated other comprehensive income as follows (dollars in thousands): Nine Months Ended 2021 Accumulated other comprehensive loss at beginning of period $ (4,873) Amortization of prior service cost into other income 698 Amortization of actuarial loss 171 Curtailment and settlement 141 Unrecognized actuarial loss (1,121) Accumulated other comprehensive loss at end of period $ (4,984) |
REVENUE
REVENUE | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE Revenue from Contracts with Customers Our revenues are derived primarily from the sale of electric power to our Utility Members pursuant to long-term wholesale electric service contracts. Our contracts with our 42 Utility Members extend through 2050. Member electric sales Revenues from electric power sales to our Utility Members are primarily from our Class A rate schedule filed with FERC. Our Class A rate schedule for electric power sales to our Utility Members consist of three billing components: an energy rate and two demand rates. Our Class A rate schedule is variable and is approved by our Board and FERC. Energy and demand have the same pattern of transfer to our Utility Members and are both measurements of the electric power provided to our Utility Members. Therefore, the provision of electric power to our Utility Members is one performance obligation. Prior to our Utility 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 Utility Member requires each incremental unit of electric power. We transfer control of the electric power to our Utility Members over time and our Utility 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 Utility Members are invoiced based on the meter reading. Payments from our Utility Members are received in accordance with the wholesale electric service contracts’ terms, which is less than 30 days from the invoice date. Utility Member electric sales revenue is recorded as Utility Member electric sales on our consolidated statements of operations and Accounts receivable – Utility Members on our consolidated statements of financial position. In addition to our Utility 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 as follows (dollars in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Non-member electric sales: Long-term contracts $ 11,380 $ 9,423 $ 30,179 $ 32,817 Short-term contracts 24,496 29,183 39,226 38,227 Recognition of deferred revenue 8,575 — 49,365 — Other 21,068 16,226 51,780 37,150 Total non-member electric sales and other operating revenue $ 65,519 $ 54,832 $ 170,550 $ 108,194 Non-member electric sales Revenues from electric power sales to non-members are primarily from long-term contracts and short-term market sales. 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. Other operating revenue Other operating revenue consists primarily of wheeling, transmission, and coal sales revenue. Other operating revenue also includes revenue we receive from two of our Non-Utility Members. Wheeling revenue is earned 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 is received). Transmission revenue is from Southwest Power Pool’s scheduling of transmission across our transmission assets in the Eastern Interconnection 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). Each of these services or goods are provided over time and progress toward completion of our performance obligations are measured using the output method. Coal sales revenue results from the sale of coal from the Colowyo Mine and other locations to third parties. We have an obligation to deliver coal and progress of completion toward our performance obligation is measured using the output method. Our performance obligation is completed as coal is delivered. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 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, which requires that deferred tax assets and liabilities be determined based on the expected future income tax consequences of events that have been recognized in the consolidated financial statements. Effective January 1, 2020, we adopted the normalization method of recognizing deferred income taxes pursuant to FERC regulation. Under the normalization method, changes in deferred tax assets or liabilities result in deferred income tax expense (benefit) and any recorded income tax expense (benefit) therefore includes both the current income tax expense (benefit) and the deferred income tax expense (benefit). Our subsidiaries are not subject to FERC regulation and continue to use a flow-through method for recognizing deferred income taxes whereby changes in deferred tax assets or liabilities result in the establishment of a regulatory asset or liability, as approved by our Board. 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 ASC 740-270, we calculate an estimate of the provision for income taxes during interim reporting periods by applying an estimate of the annual effective tax rate for the full fiscal year to income or loss (pretax income or loss excluding unusual or infrequently occurring discrete items) for the reporting period. Our consolidated statements of operations included an income tax expense of $0.5 million for the nine months ended September 30, 2021 and an income tax benefit of $0.5 million for the comparable period in 2020. Federal legislation has been proposed that contains provisions that may impact us. However, enactment of legislative proposals remains uncertain. We are monitoring developments. |
LEASES
LEASES | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
LEASES | LEASES Leasing Arrangements As Lessee We determine if an arrangement is a lease upon commencement of the contract. If an arrangement is determined to be a long-term lease (greater than 12 months), we recognize a right-of-use asset and lease liability based on the present value of the future minimum lease payments over the lease term at the commencement date. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. Our lease terms may also include options to extend or terminate the lease when it is reasonably certain that we will exercise those options. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Right-of-use assets are included in other deferred charges, the current portion of lease liabilities is included in current liabilities and the long-term portion of lease liabilities is included in other deferred credits and other liabilities on our consolidated statements of financial position. We have elected to apply the short-term lease exception for contracts that have a lease term of twelve months or less and do not include an option to purchase the underlying asset. Therefore, we do not recognize a right-of-use asset or lease liability for such contracts. We recognize short-term lease payments as expense on a straight-line basis over the lease term. Variable lease payments that do not depend on an index or rate are recognized as expense. We have lease agreements as lessee for the right to use various facilities and operational assets. Rent expense for all short-term and long-term operating leases was $0.8 million for the three months ended September 30, 2021 and $1.2 million for the comparable period in 2020. Rent expense for all short-term and long-term operating leases was $2.6 million for the nine months ended September 30, 2021 and $2.8 million for the comparable period in 2020. Rent expense is included in various categories of operating expenses on our consolidated statements of operations based on the type and purpose of the lease. As of September 30, 2021, there were no arrangements accounted for as finance leases. Our consolidated statements of financial position include the following lease components (dollars in thousands): September 30, 2021 December 31, 2020 Operating leases Operating lease right-of-use assets $ 9,402 $ 9,223 Less: Accumulated amortization (1,897) (1,238) Net operating lease right-of-use assets $ 7,505 $ 7,985 Operating lease liabilities - current $ (487) $ (526) Operating lease liabilities - noncurrent (1,675) (1,590) Total operating lease liabilities $ (2,162) $ (2,116) Operating leases Weighted average remaining lease term (years) 7.6 7.6 Weighted average discount rate 3.85 % 3.84 % Future expected minimum lease commitments under operating leases are as follows (dollars in thousands): Year 1 $ 466 Year 2 352 Year 3 315 Year 4 196 Year 5 91 Thereafter 923 Total lease payments $ 2,343 Less imputed interest (181) Total $ 2,162 Leasing Arrangements As Lessor We have lease agreements as lessor for certain operational assets. The revenue from these lease agreements of $2.2 million and $1.8 million for the three months ended September 30, 2021 and 2020, respectively, and $5.7 million and $5.0 million for the nine months ended September 30, 2021 and 2020 respectively, are included in other operating revenue on our consolidated statements of operations. The lease arrangement with the Springerville Partnership is not reflected in our lease right right-of-use asset or liability balances as the associated revenues and expenses are eliminated in consolidation. See Note 16- Variable Interest Entities. However, as |
FAIR VALUE
FAIR VALUE | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | 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. Executive Benefit Restoration Plan Trust In December 2020, we established an irrevocable trust with an independent third party to fund the NRECA Executive Benefit Restoration Plan. The trust is funded quarterly to the prior year obligation as determined by the NRECA actuary. The trust consists of investments in equity and debt securities and are measured at fair value on a recurring basis. Changes in the fair value of investments in equity securities are recognized in earnings and changes in fair value of investments in debt securities classified as available-for-sale are recognized in other comprehensive income until realized. 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): September 30, 2021 December 31, 2020 Cost Estimated Cost Estimated EBR Trust investments $ 8,259 $ 8,147 $ 6,955 $ 6,955 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): September 30, 2021 December 31, 2020 Cost Estimated Cost Estimated Marketable securities $ 520 $ 561 $ 491 $ 478 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 $71.8 million as of September 30, 2021 and $94.6 million as of December 31, 2020. Debt The fair values of long-term 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): September 30, 2021 December 31, 2020 Principal Estimated Principal Estimated Total long-term debt $ 3,221,577 $ 3,809,555 $ 3,308,715 $ 3,908,497 |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 9 Months Ended |
Sep. 30, 2021 | |
Variable Interest Entity or Potential VIE, Information Unavailability, Disclosures [Abstract] | |
VARIABLE INTEREST ENTITIES | 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. Assets and liabilities of the Springerville Partnership that are included in our consolidated statements of financial position are as follows (dollars in thousands): September 30, 2021 December 31, 2020 Net electric plant $ 744,670 $ 758,273 Noncontrolling interest 117,334 114,852 Long-term debt 300,507 342,355 Accrued interest 3,488 9,942 Our consolidated statements of operations include the following Springerville Partnership expenses for the three and nine months ended September 30, 2021 and 2020 (dollars in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Depreciation, amortization and depletion $ 4,534 $ 4,535 $ 13,603 $ 13,603 Interest 4,951 5,646 15,092 17,157 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. 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. |
LEGAL
LEGAL | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
LEGAL | LEGAL Other than as disclosed below, we do not expect any litigation or proceeding pending or threatened against us to have a potential material effect on our financial condition, results of operations or cash flows. FERC Tariff and Declaratory Order: Because of increased pressure by states to regulate our rates and charges with impact in other states setting up untenable conflict, we sought consistent federal jurisdiction by FERC. This was accomplished with the addition of non-cooperative members in 2019, specifically MIECO, Inc. as a Non-Utility Member on September 3, 2019. On the same date, we became FERC jurisdictional for our Utility Member rates, transmission service, and our market based rates. We filed our tariff for wholesale electric service and transmission at FERC in December 2019. In addition, on December 23, 2019, we filed our Petition for Declaratory Order ("Jurisdictional PDO") with FERC, EL20-16-000, asking FERC to confirm our jurisdiction under the Federal Power Act and that FERC’s jurisdiction preempts the jurisdiction of the Colorado Public Utilities Commission ("COPUC") to address any rate related issues, including the complaints filed by United Power, Inc. ("United Power") and La Plata Electric Association ("LPEA") with the COPUC. On March 20, 2020, FERC issued orders regarding our Jurisdictional PDO and our tariff filings. FERC’s orders generally accepted our tariff filings and recognized that we became FERC jurisdictional on September 3, 2019, but did not make the tariffs retroactive to September 3, 2019. However, FERC specifically provided that no refunds are due on our Utility Member rates and our transmission service rates prior to March 26, 2020. FERC also did not determine that our Utility Member rates and transmission service rates were just and reasonable and ordered 206 proceedings to determine the justness and reasonableness of our rates and wholesale electric service contracts. The tariff rates were referred to administrative law judges to encourage settlement of material issues and to hold hearings if settlements were not reached. Any refunds to the applicable tariff rates would only apply for sales after March 26, 2020. On April 30, 2021, we filed a proposed settlement agreement with FERC related to our Utility Member stated rate for approval, as further discussed belo w. On October 22, 2021, we filed a proposed settlement agreement with FERC related to our transmission service rates for approval, as further discussed below . FERC’s March 20, 2020 order regarding our Juri sdictional PDO denied our requested declaration regarding the preemption of the United Power and LPEA proceeding at the COPUC stating the proceeding was not currently preempted. On July 17, 2020, United Power filed a petition for review with the United States Court of Appeals for the District of Columbia Circuit ("D.C. Circuit Court of Appeals") related to FERC’s March 20, 2020 order related to our Utility Member rates and such matter is being held in abeyance pending resolution of the Jurisdictional PDO appeal discussed below. On August 28, 2020, FERC issued an order (“August 28 Order”) on rehearing related to our Jurisdictional PDO which modified its March 20, 2020 decision by finding exclusive jurisdiction over our contract termination payments and preempting the jurisdiction of the COPUC as of September 3, 2019. On December 16, 2020, United Power filed a petition for review with the D.C. Circuit Court of Appeals related to FERC’s August 28 Order. Petitions for review related to both the Jurisdictional PDO and tariff filings have been filed with the D.C. Circuit Court of Appeals by other parties. On September 29, 2021, an order was issued by the court to hold all the cases before the D.C. Circuit Court of Appeals in abeyance other than related to the Jurisdictional PDO, directing the parties to file motions to govern future proceedings by December 20, 2021. FERC, United Power, and the other parties reached agreement on the procedures and schedule for the Jurisdictional PDO. On June 7, 2021, United Power filed its brief with the D.C. Circuit Court of Appeals regarding the Jurisdictional PDO. On September 27, 2021, FERC filed its brief with the D.C. Circuit Court of Appeals regarding the Jurisdictional PDO. On April 30, 2021, we filed a proposed settlement agreement for approval with FERC related to our Utility Member stated rate, including our wholesale electric service contracts and certain of our Board policies filed with FERC. With the exception of four reserved issues contingent on United Power being a settling party, the settlement resolves all issues set for hearing and settlement procedures related to our Utility Member rates. The settlement provides for us to implement a two-stage, graduated reduction in the charges making up our Class A rate schedule of two percent starting from March 1, 2021 until the first anniversary and four percent reduction (additional two percent reduction from current rates) thereafter until the date a new Class A wholesale rate schedule is approved by FERC and goes into effect. The settlement rates will remain in effect at least through May 31, 2023 and during such time period, we and the settlement parties have agreed, with limited exceptions, to a moratorium on any filings related to our Class A rate schedule, including any rate increases to our Class A rate schedule. We have also agreed to file a new Class A rate schedule after May 31, 2023 and prior to September 1, 2023. During the moratorium, we will establish a rate design committee to oversee the development of the new rate. Three of the reserved issues are related to the transmission component of our rates and the fourth relates to our community solar program. Additionally, with the exception of one reserved issue regarding transmission demand charges applicable to certain electric storage resources, each of the reserved issues will have prospective effect only, with the intent that any FERC rulings would be implemented in future rate filings. O n June 30, 20 21, the Chief Judge terminated the settlement judge procedures for our member rates docket. On August 2, 2021, FERC approved this settlement agreement. On September 1, 2021, we filed a motion with FERC to set a procedure schedule for the four reserved issues. On November 2, 2021, FERC issued an order rejecting the procedural schedule and returning the reserved issues to settlement and/or hearing procedures before an administrative law judge. On October 22, 2021, we filed a proposed settlement agreement for approval with FERC related to our transmission service rates, including our open access transmission tariff and annual transmission revenue requirements. The proposed settlement resolves all issues set for hearing and settlement procedures related to our transmission service rates. The proposed settlement agreement provides for us to refund amounts collected more than the amounts agreed to in the proposed settlement agreement beginning March 26, 2020 upon FERC’s approval of the settlement agreement. We also filed a motion with FERC’s Chief Judge seeking authorization to implement our reduced transmission service rates and annual transmission revenue requirements for the 2021 rate year beginning on October 1, 2021 pending FERC’s approval of the proposed settlement agreement. In connection with the proposed settlement, our other revenue and results of operations does not include our estimate of revenue that is expected to be refunded. Such amount is being held in reserve. It is not possible to predict if FERC will require us to refund amounts to our customers for sales after March 26, 2020 on outstanding issues, if FERC will approve our proposed settlement agreement filed on October 22, 2021 related to our transmission service rates and tariff, or the outcome of the four reserved issues related to our member rates docket. In addition, we cannot predict the outcome of the 206 proceedings or any petitions for review filed with the D.C. Circuit Court of Appeals. LPEA and United Power COPUC Complaints: Pursuant to our Bylaws, a Utility Member may only withdraw from membership in us upon compliance with such equitable terms and conditions as our Board may prescribe provided, however, that no Utility Member shall be permitted to withdraw until it has met all its contractual obligations to us, including all obligations under its wholesale electric service contract with us. On November 5, 2019, LPEA filed a formal complaint with the COPUC alleging that we hindered LPEA’s ability to seek withdrawal from us. On November 6, 2019, United Power filed a formal complaint with the COPUC, alleging that we hindered United Power’s ability to explore its power supply options by either withdrawing from us or continuing as a Utility Member under a partial requirements contract. On November 20, 2019, the COPUC consolidated the two proceedings into one, 19F-0621E. A hearing was held on May 18-20, 2020. On July 10, 2020, the administrative law judge issued a recommended decision, but the COPUC on its own motion stayed the recommended decision. On September 18, 2020, LPEA and United Power filed a Joint Motion to Lodge FERC’s August 28 Order, and asserting additional corporate law arguments related to the legality of our addition of Non-Utility Members. On October 22, 2020, the COPUC determined that COPUC’s jurisdiction over United Power and LPEA’s complaints was preempted by FERC, the COPUC does not have jurisdiction over corporate law matters, and dismissed both complaints without prejudice. On January 27, 2021, United Power filed a Writ for Certiorari or Judicial Review, an appeal, in the Denver County District Court, 2021CV30325, of the COPUC's decision to dismiss United Power's complaint. On February 17, 2021, the Denver County District Court granted our unopposed motion to intervene as a defendant in United Power’s appeal of the COPUC’s dismissal. United Power, the COPUC, and us have all filed respective briefs with the court. The court heard oral arguments on September 17, 2021. It is not possible to predict the outcome in this matter. United Power's Adams District Court Complaint : On May 4, 2020, United Power filed a Complaint for Declaratory Judgement and Damages in the Adams County District Court, 2020CV30649, against us and our three Non-Utility Members alleging, among other things, that the April 2019 Bylaws amendment that allows our Board to establish one or more classes of membership in addition to the then existing all-requirements class of membership is void, the April 2020 Board approvals related to a “Make-Whole” methodology for a contract termination payment and buy-down payment formula are also void, that we have breached the wholesale electric service contract with United Power, and that we and our three Non-Utility Members conspired to deprive the COPUC of jurisdiction over the contract termination payment of our Colorado Utility Members. On June 20, 2020, we filed our answer denying United Power’s allegations and request for relief, and asked the court to dismiss United Power’s claims. We asserted counterclaims against United Power, and are seeking relief from United Power’s breach of our Bylaws and declaratory judgement that the April 2019 Bylaws amendment and the April 2020 Board approvals related to a “Make-Whole” methodology for a contract termination payment and buy-down payment formula are valid. On June 20, 2020, the three Non-Utility Members filed a joint motion to dismiss. On December 10, 2020, the Non-Utility Members motion to dismiss was granted. On December 23, 2020, United Power sought to amend its May 2020 compliant to add LPEA as an additional plaintiff and to add a claim that that our addition of the Non-Utility Members violated Colorado law. On July 2, 2021, the court granted United Power's motion to amend its May 2020 complaint, including to add LPEA as an additional plaintiff and to amend its claims as to our three Non-Utility Members. On July 30, 2021, we filed a partial motion to dismiss a majority of United Power's and LPEA's claims, including claims related to the April 2019 Bylaws amendment, the April 2020 Board approvals, and that we conspired with our Non-Utility Members. On July 30, 2021, the three Non-Utility Members filed a joint motion to dismiss all claims by United Power and LPEA against the Non-Utility Members. It is not possible to predict the outcome of this matter or whether we will incur any liability in connection with this matter. TAPP Complaint : On September 24, 2021, TransAmerican Power Products, Inc. (“TAPP”) filed a complaint in Adams County District Court, 2021CV31089, against us alleging breach of contract and breach of implied covenant of good faith and fair dealing related to an invoice for TAPP’s supply of materials for a transmission project. TAPP seeks damages of approximately $3 million. We dispute that any amount is owed TAPP. It is not possible to predict the outcome of this matter or whether we will incur any liability in connection with this matter. |
PRESENTATION OF FINANCIAL INF_2
PRESENTATION OF FINANCIAL INFORMATION (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements On December 18, 2019, the Financial Accounting Standards Board issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which may impact both interim and annual reporting periods. This guidance is required to be adopted by public filers for years beginning after December 15, 2020. Under previous guidance, when there was a change in tax law (such as a change in the statutory tax rate), ASC 740 required the impact on deferred taxes to be recognized in the reporting period that included the enactment date. However, the interim period guidance under ASC 740-270 required that the effect of a change in tax rate be recognized in the estimated annual effective tax rate at enactment date or the effective date, whichever occurred later. Thus, in situations where a rate change was enacted in one interim period but effective in another interim period, complexities arose with respect to deferred tax balances and taxes payable. ASU 2019-12 modifies the previous approach so that changes in tax law should be reflected in the estimated annual rate in the period of enactment. This better aligns the interim reporting framework with the overall guidance with respect to changes in tax law. As described in Note 13 - Income Taxes, federal legislation has been proposed to increase the federal corporate income tax rate. If that were to occur, we would report the impact pursuant to ASU 2019-12. We do not anticipate having any other material financial reporting impacts caused by ASU 2019-12 . |
PRESENTATION OF FINANCIAL INF_3
PRESENTATION OF FINANCIAL INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of jointly owned facilities | Our share in each jointly owned facility is as follows as of September 30, 2021 (dollars in thousands): Tri-State Electric Accumulated Construction Yampa Project - Craig Generating Station Units 1 and 2 24.00 % $ 391,695 $ 253,183 $ 790 MBPP - Laramie River Station 28.50 % 523,438 334,827 3,453 Total $ 915,133 $ 588,010 $ 4,243 |
ACCOUNTING FOR RATE REGULATION
ACCOUNTING FOR RATE REGULATION (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Regulatory Assets and Liabilities Disclosure [Abstract] | |
Schedule of regulatory assets and liabilities | Regulatory assets and liabilities are as follows (dollars in thousands): September 30, 2021 December 31, 2020 Regulatory assets Deferred income tax expense (1) $ 19,035 $ 19,641 Deferred prepaid lease expense – Springerville Unit 3 Lease (2) 79,706 81,424 Goodwill – J.M. Shafer (3) 44,159 46,296 Goodwill – Colowyo Coal (4) 35,386 36,161 Deferred debt prepayment transaction costs (5) 125,831 132,302 Deferred Holcomb expansion impairment loss (6) 85,313 88,819 Unrecovered plant (7) 286,534 305,625 Total regulatory assets 675,964 710,268 Regulatory liabilities Interest rate swap - realized gain (8) and other 2,935 3,293 Deferred revenues (9) 14,353 63,717 Membership withdrawal (10) 157,943 157,943 Total regulatory liabilities 175,231 224,953 Net regulatory asset $ 500,733 $ 485,315 (1) Represents a regulatory asset or liability associated with deferred income tax expense that is expected to result in income taxes payable in future periods. Our subsidiaries are not subject to FERC regulation and continue to use a flow-through method for recognizing deferred income taxes whereby changes in deferred tax assets or liabilities result in the establishment of a regulatory asset or liability, as approved by our Board. (2) 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 Utility Members through rates. (3) 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 Utility Members through rates. (4) 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 Utility Members through rates. (5) 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 21.4-year period ending in 2036 and recovered from our Utility Members through rates. (6) 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 regulatory asset for the deferred impairment loss is being amortized to depreciation, amortization and depletion expense in the amount of $4.7 million annually over the 20-year period ending in 2039 and recovered from our Utility Members through rates. (7) Represents deferral of the impairment losses related to the early retirement of the Nucla and Escalante Generating Stations. The deferred impairment loss for Nucla Generating Station is being amortized to depreciation, amortization and depletion expense in the amount of $9.1 million annually through December 2022 and recovered from our Utility Members through rates. The deferred impairment loss for Escalante Generating Station is being amortized to depreciation, amortization and depletion expense in the amount of $11.3 million annually over the 25-year period ending in December 2045, which was the depreciable life of Escalante Generating Station, and recovered from our Utility Members through rates. The annual amortization approximates the former annual Escalante Generating Station depreciation for the remaining life of the asset. (8) Represents deferral of a realized gain of $4.6 million related to the October 2017 settlement of a forward starting interest rate swap. 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 and refunded to Utility Members through reduced rates when recognized in future periods. (9) Represents deferral of the recognition of non-member electric sales revenues. These deferred non-member electric sales revenues will be refunded to Utility Members as part of our rate stabilization measures when recognized in non-member electric sales revenue in future periods. (10) Represents the deferral of the recognition of other income related to the withdrawal of former Utility Members from membership in us. The total deferred membership withdrawal income will be refunded to Utility Members as part of our rate stabilization measures when recognized in other income in future periods. |
INVESTMENTS IN OTHER ASSOCIAT_2
INVESTMENTS IN OTHER ASSOCIATIONS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | |
Schedule of investments in other associations | Investments in other associations are as follows (dollars in thousands): September 30, 2021 December 31, 2020 Basin Electric Power Cooperative $ 118,295 $ 118,295 National Rural Utilities Cooperative Finance Corporation - patronage capital 12,076 11,933 National Rural Utilities Cooperative Finance Corporation - capital term certificates 15,149 15,221 CoBank, ACB 12,985 11,141 Other 6,108 6,385 Investments in other associations $ 164,613 $ 162,975 |
CASH, CASH EQUIVALENTS AND RE_2
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AND INVESTMENTS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | |
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, 2021 December 31, 2020 Cash and cash equivalents $ 97,602 $ 127,187 Restricted cash and investments - current 411 205 Restricted cash and investments - noncurrent 4,241 4,682 Cash, cash equivalents and restricted cash and investments $ 102,254 $ 132,074 |
CONTRACT ASSETS AND CONTRACT _2
CONTRACT ASSETS AND CONTRACT LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Change in Contract with Customer, Asset and Liability [Abstract] | |
Schedule of contract assets and liabilities | Our contract assets and liabilities consist of the following (dollars in thousands): September 30, 2021 December 31, 2020 Accounts receivable - Utility Members $ 102,286 $ 96,637 Other accounts receivable - trade: Non-member electric sales 8,277 5,231 Other 12,771 9,785 Total other accounts receivable - trade 21,048 15,016 Other accounts receivable - nontrade 2,646 5,554 Total other accounts receivable $ 23,694 $ 20,570 Contract liabilities (unearned revenue) $ 5,590 $ 6,025 |
OTHER DEFERRED CHARGES (Tables)
OTHER DEFERRED CHARGES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Deferred Costs [Abstract] | |
Schedule of Other Deferred Charges | The following other deferred charges are reflected on our consolidated statements of financial position (dollars in thousands): September 30, 2021 December 31, 2020 Preliminary surveys and investigations $ 11,371 $ 12,886 Advances to operating agents of jointly owned facilities 7,770 2,071 Operating lease right-of-use assets 7,505 7,985 Other 13,381 10,704 Total other deferred charges $ 40,027 $ 33,646 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | Long-term debt consists of the following (dollars in thousands): September 30, 2021 December 31, 2020 Total debt $ 3,221,577 $ 3,308,715 Less debt issuance costs (23,723) (25,590) Less debt discounts (9,464) (9,659) Plus debt premiums 13,321 14,302 Total debt adjusted for debt issuance costs, discounts and premiums 3,201,711 3,287,768 Less current maturities (91,165) (87,587) Long-term debt $ 3,110,546 $ 3,200,181 |
ASSET RETIREMENT AND ENVIRONM_2
ASSET RETIREMENT AND ENVIRONMENTAL RECLAMATION OBLIGATIONS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Asset Retirement Obligations | Aggregate carrying amounts of asset retirement obligations and environmental reclamation obligations are as follows (dollars in thousands): Nine Months Ended 2021 Obligations at beginning of period $ 138,089 Liabilities incurred 500 Liabilities settled (4,384) Accretion expense 1,913 Change in estimate (48,918) Total obligations at end of period $ 87,200 Less current obligations at end of period (6,511) Long-term obligations at end of period $ 80,689 |
OTHER DEFERRED CREDITS AND OT_2
OTHER DEFERRED CREDITS AND OTHER LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Deferred Credits and Other Liabilities [Abstract] | |
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, 2021 December 31, 2020 Transmission easements $ 19,531 $ 19,983 Operating lease liabilities - noncurrent 1,675 1,590 Contract liabilities (unearned revenue) - noncurrent 3,634 3,702 Customer deposits 8,860 7,712 Financial liabilities - reclamation 12,266 12,081 Deposits associated with generator interconnection requests 22,709 — Other 10,090 9,532 Total other deferred credits and other liabilities $ 78,765 $ 54,600 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of employee benefit plan 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): Nine Months Ended 2021 Postretirement medical benefit obligation at beginning of period $ 9,985 Service cost 451 Interest cost 194 Benefit payments (net of contributions by participants) (444) Postretirement medical benefit obligation at end of period $ 10,186 Postemployment medical benefit obligation at end of period 419 Total postretirement and postemployment medical obligations at end of period $ 10,605 The NRECA Executive Benefit Restoration Plan obligations are determined annually (during the first quarter of the subsequent year) by an NRECA actuary and are included in accumulated postretirement benefit and postemployment obligations on our consolidated statements of financial position as follows (dollars in thousands): Nine Months Ended 2021 Executive benefit restoration obligation at beginning of period $ 7,379 Service cost 270 Interest cost 165 Actuarial loss 1,121 Executive benefit restoration at end of period $ 8,935 Fair value of plan assets at beginning of period $ 6,955 Employer contributions 1,209 Actual return on plan assets $ 95 Fair value of plan assets at end of period $ 8,259 Net liability recognized at end of period $ 676 |
Schedule of the net unrecognized actuarial gains and losses related to employee benefit plan obligations | 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): Nine Months Ended 2021 Accumulated other comprehensive loss at beginning of period $ (841) Amortization of prior service credit into other income (59) Accumulated other comprehensive loss at end of period $ (900) The net unrecognized actuarial gains and losses related to the executive benefit restoration obligations are included in accumulated other comprehensive income as follows (dollars in thousands): Nine Months Ended 2021 Accumulated other comprehensive loss at beginning of period $ (4,873) Amortization of prior service cost into other income 698 Amortization of actuarial loss 171 Curtailment and settlement 141 Unrecognized actuarial loss (1,121) Accumulated other comprehensive loss at end of period $ (4,984) |
REVENUE (Tables)
REVENUE (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of revenue from contracts with non-member customers and other operating revenue | The following revenue is reflected on our consolidated statements of operations as follows (dollars in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Non-member electric sales: Long-term contracts $ 11,380 $ 9,423 $ 30,179 $ 32,817 Short-term contracts 24,496 29,183 39,226 38,227 Recognition of deferred revenue 8,575 — 49,365 — Other 21,068 16,226 51,780 37,150 Total non-member electric sales and other operating revenue $ 65,519 $ 54,832 $ 170,550 $ 108,194 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Schedule of lease components | Our consolidated statements of financial position include the following lease components (dollars in thousands): September 30, 2021 December 31, 2020 Operating leases Operating lease right-of-use assets $ 9,402 $ 9,223 Less: Accumulated amortization (1,897) (1,238) Net operating lease right-of-use assets $ 7,505 $ 7,985 Operating lease liabilities - current $ (487) $ (526) Operating lease liabilities - noncurrent (1,675) (1,590) Total operating lease liabilities $ (2,162) $ (2,116) Operating leases Weighted average remaining lease term (years) 7.6 7.6 Weighted average discount rate 3.85 % 3.84 % |
Schedule of expected minimum lease commitments under operating leases | Future expected minimum lease commitments under operating leases are as follows (dollars in thousands): Year 1 $ 466 Year 2 352 Year 3 315 Year 4 196 Year 5 91 Thereafter 923 Total lease payments $ 2,343 Less imputed interest (181) Total $ 2,162 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
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): September 30, 2021 December 31, 2020 Cost Estimated Cost Estimated EBR Trust investments $ 8,259 $ 8,147 $ 6,955 $ 6,955 September 30, 2021 December 31, 2020 Cost Estimated Cost Estimated Marketable securities $ 520 $ 561 $ 491 $ 478 September 30, 2021 December 31, 2020 Principal Estimated Principal Estimated Total long-term debt $ 3,221,577 $ 3,809,555 $ 3,308,715 $ 3,908,497 |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Variable Interest Entity or Potential VIE, Information Unavailability, Disclosures [Abstract] | |
Schedule of consolidated variable interest entities | Assets and liabilities of the Springerville Partnership that are included in our consolidated statements of financial position are as follows (dollars in thousands): September 30, 2021 December 31, 2020 Net electric plant $ 744,670 $ 758,273 Noncontrolling interest 117,334 114,852 Long-term debt 300,507 342,355 Accrued interest 3,488 9,942 Our consolidated statements of operations include the following Springerville Partnership expenses for the three and nine months ended September 30, 2021 and 2020 (dollars in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Depreciation, amortization and depletion $ 4,534 $ 4,535 $ 13,603 $ 13,603 Interest 4,951 5,646 15,092 17,157 |
PRESENTATION OF FINANCIAL INF_4
PRESENTATION OF FINANCIAL INFORMATION (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021USD ($)memberSystemfacility | Aug. 01, 2021MW | |
Jointly owned facilities | ||
Number of classes of members | memberSystem | 3 | |
Number of jointly owned facilities | facility | 2 | |
Electric Plant in Service | $ 915,133 | |
Accumulated Depreciation | 588,010 | |
Construction Work In Progress | $ 4,243 | |
Yampa Project - Craig Generating Station Units 1 and 2 | ||
Jointly owned facilities | ||
Tri-State Share | 24.00% | |
Electric Plant in Service | $ 391,695 | |
Accumulated Depreciation | 253,183 | |
Construction Work In Progress | $ 790 | |
MBPP - Laramie River Station | ||
Jointly owned facilities | ||
Tri-State Share | 28.50% | 28.50% |
Additional undivided ownership interest | 1.37% | |
Additional megawatts of generation | MW | 23 | |
Electric Plant in Service | $ 523,438 | |
Accumulated Depreciation | 334,827 | |
Construction Work In Progress | $ 3,453 | |
Class A Members | ||
Jointly owned facilities | ||
Number of members | memberSystem | 42 | |
Class B Members | ||
Jointly owned facilities | ||
Number of members | memberSystem | 0 | |
Non-Utility Members | ||
Jointly owned facilities | ||
Number of members | memberSystem | 3 |
ACCOUNTING FOR RATE REGULATIO_2
ACCOUNTING FOR RATE REGULATION (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | |
Oct. 31, 2017 | Sep. 30, 2021 | Dec. 31, 2020 | |
Regulatory assets and liabilities | |||
Regulatory assets | $ 675,964 | $ 710,268 | |
Regulatory liabilities | 175,231 | 224,953 | |
Net regulatory asset | 500,733 | 485,315 | |
Interest rate swaps, realized gain | |||
Regulatory assets and liabilities | |||
Regulatory liabilities | 2,935 | 3,293 | |
Proceeds from settlement of interest rate swaps | $ 4,600 | ||
Deferred non-member electric sales | |||
Regulatory assets and liabilities | |||
Regulatory liabilities | 14,353 | 63,717 | |
Deferred membership withdrawal income | |||
Regulatory assets and liabilities | |||
Regulatory liabilities | $ 157,943 | 157,943 | |
First Mortgage Obligations, Series 2017A , Tranche 1, 3.34%, due through 2029 | |||
Regulatory assets and liabilities | |||
Term of issuance | 12 years | ||
Deferred income tax expense | |||
Regulatory assets and liabilities | |||
Regulatory assets | $ 19,035 | 19,641 | |
Deferred prepaid lease expense | Springerville Unit 3 Lease | |||
Regulatory assets and liabilities | |||
Regulatory assets | 79,706 | 81,424 | |
Annual amortization expense | $ 2,300 | ||
Amortization period | 47 years | ||
Goodwill | TCP | |||
Regulatory assets and liabilities | |||
Regulatory assets | $ 44,159 | 46,296 | |
Annual amortization expense | $ 2,800 | ||
Amortization period | 25 years | ||
Goodwill | Colowyo Coal | |||
Regulatory assets and liabilities | |||
Regulatory assets | $ 35,386 | 36,161 | |
Annual amortization expense | $ 1,000 | ||
Amortization period | 44 years | ||
Deferred debt prepayment transaction costs | |||
Regulatory assets and liabilities | |||
Regulatory assets | $ 125,831 | 132,302 | |
Annual amortization expense | $ 8,600 | ||
Amortization period | 21 years 4 months 24 days | ||
Deferred impairment loss | Unrecovered Plants | |||
Regulatory assets and liabilities | |||
Regulatory assets | $ 286,534 | 305,625 | |
Deferred impairment loss | Holcomb Expansion | |||
Regulatory assets and liabilities | |||
Annual amortization expense | 9,100 | ||
Deferred impairment loss | Escalante Generating Station | |||
Regulatory assets and liabilities | |||
Annual amortization expense | 11,300 | ||
Deferred impairment loss | Holcomb Expansion | |||
Regulatory assets and liabilities | |||
Regulatory assets | 85,313 | $ 88,819 | |
Annual amortization expense | $ 4,700 | ||
Amortization period | 20 years |
INVESTMENTS IN OTHER ASSOCIAT_3
INVESTMENTS IN OTHER ASSOCIATIONS (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Investment in other associations | |||
Investment in other associations | $ 164,613,000 | $ 162,975,000 | |
Impairment during the period | 0 | $ 0 | |
Basin Electric Power Cooperative | |||
Investment in other associations | |||
Investment in other associations | 118,295,000 | 118,295,000 | |
National Rural Utilities Cooperative Finance Corporation - patronage capital | |||
Investment in other associations | |||
Investment in other associations | 12,076,000 | 11,933,000 | |
National Rural Utilities Cooperative Finance Corporation - capital term certificates | |||
Investment in other associations | |||
Investment in other associations | 15,149,000 | 15,221,000 | |
CoBank, ACB | |||
Investment in other associations | |||
Investment in other associations | 12,985,000 | 11,141,000 | |
Other | |||
Investment in other associations | |||
Investment in other associations | $ 6,108,000 | $ 6,385,000 |
CASH, CASH EQUIVALENTS AND RE_3
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AND INVESTMENTS (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 |
Cash, cash equivalents, restricted cash and investments | ||||
Cash and cash equivalents | $ 97,602 | $ 127,187 | ||
Restricted cash and investments - current | 411 | 205 | ||
Restricted cash and investments - noncurrent | 4,241 | 4,682 | ||
Cash, cash equivalents and restricted cash and investments | $ 102,254 | $ 132,074 | $ 170,051 | $ 113,768 |
CONTRACT ASSETS AND CONTRACT _3
CONTRACT ASSETS AND CONTRACT LIABILITIES (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Accounts receivable | ||
Accounts receivable—Utility Members | $ 102,286 | $ 96,637 |
Other accounts receivable - trade | 23,694 | 20,570 |
Contract liabilities | ||
Contract liabilities (unearned revenue) | 5,590 | 6,025 |
Other accounts receivable - trade | ||
Accounts receivable | ||
Other accounts receivable - trade | 21,048 | 15,016 |
Other accounts receivable - trade | Non-member electric sales | ||
Accounts receivable | ||
Other accounts receivable - trade | 8,277 | 5,231 |
Other accounts receivable - trade | Other | ||
Accounts receivable | ||
Other accounts receivable - trade | 12,771 | 9,785 |
Other accounts receivable, non-trade | ||
Accounts receivable | ||
Other accounts receivable - trade | 2,646 | $ 5,554 |
Other operating revenue | ||
Contract liabilities | ||
Contract liabilities recognized | $ 400 |
OTHER DEFERRED CHARGES (Details
OTHER DEFERRED CHARGES (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Deferred Costs [Abstract] | ||
Preliminary surveys and investigations | $ 11,371 | $ 12,886 |
Advances to operating agents of jointly owned facilities | 7,770 | 2,071 |
Operating lease right-of-use assets | 7,505 | 7,985 |
Other | 13,381 | 10,704 |
Total other deferred charges | $ 40,027 | $ 33,646 |
LONG-TERM DEBT - Additional Inf
LONG-TERM DEBT - Additional Information (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021USD ($)$ / shares | Dec. 31, 2020USD ($) | |
Debt | ||
Long-term debt | $ 3,110,546 | $ 3,200,181 |
Number of unsecured debt instruments | $ / shares | 1 | |
Unsecured notes | $ 13,900 | |
Minimum | ||
Debt | ||
Equity to capitalization ratio (ECR) requirement | 18.00% | |
Debt service ratio (DSR) requirement | 1.10 | |
Springerville certificates, Series B, 7.14%, due through 2033 | ||
Debt | ||
Debt service ratio (DSR) requirement | 1.02 | |
2018 Revolving Credit Agreement | ||
Debt | ||
Maximum borrowing capacity | $ 650,000 | |
Available borrowing capacity | 650,000 | |
2018 Revolving Credit Agreement | Commercial Paper | ||
Debt | ||
Available borrowing capacity | 500,000 | |
Swingline | ||
Debt | ||
Maximum borrowing capacity | 100,000 | |
Letter of Credit | ||
Debt | ||
Maximum borrowing capacity | 75,000 | |
Commercial Paper | ||
Debt | ||
Maximum borrowing capacity | $ 500,000 |
LONG-TERM DEBT - Components (De
LONG-TERM DEBT - Components (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Long-term debt, components | ||
Total debt | $ 3,221,577 | $ 3,308,715 |
Less debt issuance costs | (23,723) | (25,590) |
Less debt discounts | (9,464) | (9,659) |
Plus debt premiums | 13,321 | 14,302 |
Total debt adjusted for debt issuance costs, discounts and premiums | 3,201,711 | 3,287,768 |
Less current maturities | (91,165) | (87,587) |
Long-term debt | $ 3,110,546 | $ 3,200,181 |
SHORT-TERM BORROWINGS (Details)
SHORT-TERM BORROWINGS (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
2018 Revolving Credit Agreement | ||
Short-term borrowings | ||
Available borrowing capacity | $ 650,000 | |
Commercial Paper | ||
Short-term borrowings | ||
Maximum amount per commercial paper sublimit | 500,000 | |
Short-term borrowings | 0 | $ 0 |
Commercial Paper | 2018 Revolving Credit Agreement | ||
Short-term borrowings | ||
Available borrowing capacity | $ 500,000 |
ASSET RETIREMENT AND ENVIRONM_3
ASSET RETIREMENT AND ENVIRONMENTAL RECLAMATION OBLIGATIONS (Details) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2021USD ($) | Dec. 31, 2019USD ($)item | Dec. 31, 2020USD ($) | |
Aggregate carrying amounts of asset retirement obligations | |||
Obligations at beginning of period | $ 138,089 | ||
Liabilities incurred | 500 | ||
Liabilities settled | (4,384) | ||
Accretion expense | 1,913 | ||
Change in estimate | (48,918) | ||
Total obligations at end of period | 87,200 | ||
Less current obligations at end of period | (6,511) | $ (11,044) | |
Long-term obligations at end of period | 80,689 | ||
Colowyo Mine | |||
Asset Retirement And Environmental Reclamation Obligations | |||
Number of mine pits in final reclamation | item | 1 | ||
Aggregate carrying amounts of asset retirement obligations | |||
Additional environmental reclamation obligation liability | $ 43,800 | ||
New Horizon Mine | |||
Aggregate carrying amounts of asset retirement obligations | |||
Additional environmental reclamation obligation liability | $ (22,400) |
OTHER DEFERRED CREDITS AND OT_3
OTHER DEFERRED CREDITS AND OTHER LIABILITIES (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Deferred credits and other liabilities | ||
Transmission easements | $ 19,531 | $ 19,983 |
Operating lease liabilities - noncurrent | 1,675 | 1,590 |
Contract liabilities (unearned revenue) - noncurrent | 3,634 | 3,702 |
Customer deposits | 8,860 | 7,712 |
Financial liabilities - reclamation | 12,266 | 12,081 |
Deposits associated with generator interconnection requests | 22,709 | 0 |
Other | 10,090 | 9,532 |
Total other deferred credits and other liabilities | 78,765 | 54,600 |
Transmission Right of Way Easements | ||
Deferred credits and other liabilities | ||
Total due for easement right of way | 29,200 | |
Transmission Right of Way Easements | Other Deferred Credits and Other Liabilities | ||
Deferred credits and other liabilities | ||
Transmission easements | $ 19,500 | $ 20,000 |
EMPLOYEE BENEFIT PLANS - Postre
EMPLOYEE BENEFIT PLANS - Postretirement Benefits Other Than Pensions, Obligations (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($)plan | |
Medical Plans | |
Postretirement medical benefit and postemployment medical benefit obligations | |
Total postretirement and postemployment medical obligations at end of period | $ 10,605 |
Postretirement Medical Benefit Plans | |
Postretirement medical benefit and postemployment medical benefit obligations | |
Postretirement medical benefit obligation at beginning of period | 9,985 |
Service cost | 451 |
Interest cost | 194 |
Benefit payments (net of contributions by participants) | (444) |
Total postretirement and postemployment medical obligations at end of period | $ 10,186 |
Threshold percentage, unrecognized amount of actuarial gains and losses as a percentage of projected benefit obligation | 10.00% |
Postemployment Medical Benefit Plans | |
Postretirement medical benefit and postemployment medical benefit obligations | |
Total postretirement and postemployment medical obligations at end of period | $ 419 |
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 (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Net unrecognized actuarial gains and losses | ||||
Amortization of prior service cost | $ 220 | $ 177 | $ 951 | $ 1,287 |
Postretirement Medical Benefit Plans | ||||
Net unrecognized actuarial gains and losses | ||||
Accumulated other comprehensive loss at beginning of period | (841) | |||
Amortization of prior service cost | (59) | |||
Accumulated other comprehensive loss at end of period | $ (900) | $ (900) |
EMPLOYEE BENEFIT PLANS - NRECA
EMPLOYEE BENEFIT PLANS - NRECA Executive Benefit Restoration Plan, Obligations (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Defined benefit plans, Plan Assets | |
Fair value of plan assets at beginning of period | $ 6,955 |
Employer contributions | 1,209 |
Fair value of plan assets at end of period | 8,259 |
Net liability recognized at end of period | 676 |
NRECA Executive Benefit Restoration Plan | |
Defined Benefit Plans | |
Postretirement medical benefit obligation at beginning of period | 7,379 |
Service cost | 270 |
Interest cost | 165 |
Actuarial loss | 1,121 |
Total postretirement and postemployment medical obligations at end of period | $ 8,935 |
Defined benefit plans, Plan Assets | |
Threshold percentage, unrecognized amount of actuarial gains and losses as a percentage of projected benefit obligation | 10.00% |
Executive Benefit Restoration Plan | |
Defined benefit plans, Plan Assets | |
Actual return on plan assets | $ 95 |
EMPLOYEE BENEFIT PLANS - NREC_2
EMPLOYEE BENEFIT PLANS - NRECA Executive Benefit Restoration Plan, Actuarial Gains and Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Net unrecognized actuarial gains and losses | ||||
Amortization of prior service cost | $ 220 | $ 177 | $ 951 | $ 1,287 |
Amortization of actuarial loss | 171 | |||
Curtailment and settlement | 141 | |||
NRECA Executive Benefit Restoration Plan | ||||
Net unrecognized actuarial gains and losses | ||||
Accumulated other comprehensive loss at beginning of period | (4,873) | |||
Amortization of prior service cost | 698 | |||
Unrecognized actuarial loss | (1,121) | |||
Accumulated other comprehensive loss at end of period | $ (4,984) | $ (4,984) |
REVENUE - Member Electric Sales
REVENUE - Member Electric Sales (Details) | 9 Months Ended |
Sep. 30, 2021utilityMemberdemandRatebillingCompany | |
Disaggregation of Revenue [Line Items] | |
Number of billing components of Class A rate schedule for electric power sales to Members | billingCompany | 3 |
Number of demand rates | demandRate | 2 |
Member Contracts Extending Through 2050 | |
Disaggregation of Revenue [Line Items] | |
Number of contracts | utilityMember | 42 |
REVENUE - Revenue Reflected in
REVENUE - Revenue Reflected in Statement of Operations (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)non-utilityMember | Sep. 30, 2020USD ($) | |
Disaggregation of revenue | ||||
Recognition of deferred revenue | $ 49,364 | $ 0 | ||
Other | $ 21,068 | $ 16,226 | 51,780 | 37,150 |
Total non-member electric sales and other operating revenue | 415,863 | 401,601 | $ 1,068,137 | 1,034,723 |
Number of non-utility members from whom other operating revenue is received | non-utilityMember | 2 | |||
Non-member electric sales | ||||
Disaggregation of revenue | ||||
Revenue from contract with customer | 44,451 | 38,606 | $ 118,770 | 71,044 |
Recognition of deferred revenue | 8,575 | 0 | 49,365 | 0 |
Non-member electric sales | Long-term contracts | ||||
Disaggregation of revenue | ||||
Revenue from contract with customer | 11,380 | 9,423 | 30,179 | 32,817 |
Non-member electric sales | Short-term contracts | ||||
Disaggregation of revenue | ||||
Revenue from contract with customer | 24,496 | 29,183 | 39,226 | 38,227 |
Other | ||||
Disaggregation of revenue | ||||
Other | 21,068 | 16,226 | 51,780 | 37,150 |
Total non-member electric sales and other operating revenue | ||||
Disaggregation of revenue | ||||
Total non-member electric sales and other operating revenue | $ 65,519 | $ 54,832 | $ 170,550 | $ 108,194 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense (benefit) | $ 267 | $ (154) | $ 486 | $ (484) |
LEASES - Leasing Arrangements a
LEASES - Leasing Arrangements as Lessee (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)lease | Sep. 30, 2020USD ($) | |
Leases [Abstract] | ||||
Operating lease expense | $ | $ 0.8 | $ 1.2 | $ 2.6 | $ 2.8 |
Number of financing leases | lease | 0 |
LEASES - Lease Components (Deta
LEASES - Lease Components (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 9,402 | $ 9,223 |
Less: Accumulated amortization | (1,897) | (1,238) |
Net operating lease right-of-use assets | 7,505 | 7,985 |
Operating lease liabilities - current | (487) | (526) |
Operating lease liabilities - noncurrent | (1,675) | (1,590) |
Total operating lease liabilities | $ (2,162) | $ (2,116) |
Weighted average remaining lease term (years) | 7 years 7 months 6 days | 7 years 7 months 6 days |
Weighted average discount rate | 3.85% | 3.84% |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other | Other |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Liabilities, Current | Liabilities, Current |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | ontf:DeferredCreditsRegulatoryLiabilitiesAndOtherLiabilities | ontf:DeferredCreditsRegulatoryLiabilitiesAndOtherLiabilities |
LEASES - Future Minimum Lease C
LEASES - Future Minimum Lease Commitments (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Future expected minimum lease commitments under operating leases | ||
Year 1 | $ 466 | |
Year 2 | 352 | |
Year 3 | 315 | |
Year 4 | 196 | |
Year 5 | 91 | |
Thereafter | 923 | |
Total lease payments | 2,343 | |
Less imputed interest | (181) | |
Total | $ 2,162 | $ 2,116 |
LEASES - Leasing Arrangements_2
LEASES - Leasing Arrangements as Lessor (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Leases [Abstract] | ||||
Lease revenue | $ 2.2 | $ 1.8 | $ 5.7 | $ 5 |
FAIR VALUE (Details)
FAIR VALUE (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Fair value: | ||
Cash and cash equivalents | $ 71,800 | $ 94,600 |
Cost | ||
Fair value: | ||
Marketable securities | 520 | 491 |
Total long-term debt | 3,221,577 | 3,308,715 |
Cost | EBT Trust Investments | ||
Fair value: | ||
Marketable securities | 8,259 | 6,955 |
Estimated Fair Value | ||
Fair value: | ||
Marketable securities | 561 | 478 |
Total long-term debt | 3,809,555 | 3,908,497 |
Estimated Fair Value | EBT Trust Investments | ||
Fair value: | ||
Marketable securities | $ 8,147 | $ 6,955 |
VARIABLE INTEREST ENTITIES - Co
VARIABLE INTEREST ENTITIES - Consolidated Entities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Consolidated Variable Interest Entities | |||||
Net electric plant | $ 3,358,175 | $ 3,358,175 | $ 3,352,706 | ||
Noncontrolling interest | 117,334 | 117,334 | 114,851 | ||
Long-term debt | 3,110,546 | 3,110,546 | 3,200,181 | ||
Accrued interest | 44,918 | 44,918 | 27,520 | ||
Interest | 34,878 | $ 36,213 | 105,107 | $ 109,511 | |
Springerville Partnership | Reportable Legal Entities | |||||
Consolidated Variable Interest Entities | |||||
Net electric plant | 744,670 | 744,670 | 758,273 | ||
Noncontrolling interest | 117,334 | 117,334 | 114,852 | ||
Long-term debt | 300,507 | 300,507 | 342,355 | ||
Accrued interest | 3,488 | 3,488 | $ 9,942 | ||
Depreciation, amortization and depletion | 4,534 | 4,535 | 13,603 | 13,603 | |
Interest | $ 4,951 | $ 5,646 | $ 15,092 | $ 17,157 | |
Springerville Partnership | Springerville Unit 3 Lease | |||||
Consolidated Variable Interest Entities | |||||
Percentage of financial and other support provided | 100.00% | ||||
Springerville Partnership | |||||
Consolidated Variable Interest Entities | |||||
Equity interest | 51.00% | ||||
General partner interest | 1.00% | ||||
Springerville Partnership | Other Limited Partners | |||||
Consolidated Variable Interest Entities | |||||
Ownership interest held by noncontrolling interest | 49.00% | 49.00% | |||
Springerville Unit 3 Holding LLC | Springerville Partnership | |||||
Consolidated Variable Interest Entities | |||||
Ownership interest held by parent | 100.00% | 100.00% |
LEGAL (Details)
LEGAL (Details) - USD ($) $ in Millions | Sep. 24, 2021 | Apr. 30, 2022 | Apr. 30, 2021 |
Other legal | |||
Rate reduction due to settlement | 2.00% | ||
TransAmerican Power Products | |||
Other legal | |||
Damages sought | $ 3 | ||
Subsequent Event | |||
Other legal | |||
Rate reduction due to settlement | 4.00% |