Document and Entity Information
Document and Entity Information | 3 Months Ended |
Mar. 31, 2016shares | |
Document and Entity Information Abstract | |
Entity Registrant Name | OGLETHORPE POWER CORP |
Entity Central Index Key | 788,816 |
Document Type | 10-Q |
Document Period End Date | Mar. 31, 2016 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 0 |
Document Fiscal Year Focus | 2,016 |
Document Fiscal Period Focus | Q1 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Electric plant: | ||
In service | $ 8,630,779 | $ 8,596,148 |
Less: Accumulated provision for depreciation | (3,968,968) | (3,925,838) |
Total in service | 4,661,811 | 4,670,310 |
Nuclear fuel, at amortized cost | 387,207 | 373,145 |
Construction work in progress | 2,958,677 | 2,868,669 |
Total electric plant | 8,007,695 | 7,912,124 |
Investments and funds: | ||
Nuclear decommissioning trust fund | 369,441 | 363,829 |
Investment in associated companies | 73,197 | 72,010 |
Long-term investments | 90,470 | 86,771 |
Restricted cash and investments, noncurrent | 144,109 | 134,690 |
Other | 19,394 | 19,097 |
Total investments and funds | 696,611 | 676,397 |
Current assets: | ||
Cash and cash equivalents | 111,093 | 213,038 |
Restricted short-term investments | 250,541 | 253,204 |
Receivables | 126,420 | 130,464 |
Inventories, at average cost | 293,999 | 299,252 |
Prepayments and other current assets | 16,640 | 16,913 |
Total current assets | 798,693 | 912,871 |
Deferred charges: | ||
Regulatory assets | 554,494 | 530,254 |
Other | 22,910 | 28,137 |
Total deferred charges | 577,404 | 558,391 |
Total assets | 10,080,403 | 10,059,783 |
Capitalization: | ||
Patronage capital and membership fees | 830,063 | 809,465 |
Accumulated other comprehensive margin | 342 | 58 |
Total patronage capital and membership fees and accumulated other comprehensive margin | 830,405 | 809,523 |
Long-term debt | 7,403,407 | 7,291,154 |
Obligations under capital leases | 96,501 | 96,501 |
Other | 17,857 | 17,561 |
Total capitalization | 8,348,170 | 8,214,739 |
Current liabilities: | ||
Long-term debt and capital leases due within one year | 189,938 | 189,840 |
Short-term borrowings | 303,020 | 261,478 |
Accounts payable | 44,241 | 157,432 |
Accrued interest | 53,302 | 58,830 |
Members power bill prepayments, current | 173,004 | 174,743 |
Other current liabilities | 56,566 | 86,746 |
Total current liabilities | 820,071 | 929,069 |
Deferred credits and other liabilities: | ||
Asset retirement obligations | 599,631 | 602,230 |
Member power bill prepayments, non-current | 39,165 | 44,205 |
Contract retainage | 62,552 | 66,515 |
Regulatory liabilities | 177,351 | 166,967 |
Other | 33,463 | 36,058 |
Total deferred credits and other liabilities | 912,162 | 915,975 |
Total equity and liabilities | $ 10,080,403 | $ 10,059,783 |
Consolidated Statements of Reve
Consolidated Statements of Revenues and Expenses - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating revenues: | ||
Sales to Members | $ 348,097 | $ 308,776 |
Sales to non-Members | 64 | 31,002 |
Total operating revenues | 348,161 | 339,778 |
Operating expenses: | ||
Fuel | 98,952 | 108,409 |
Production | 103,471 | 114,759 |
Depreciation and amortization | 53,486 | 42,652 |
Purchased power | 13,143 | 13,631 |
Accretion | 8,016 | 6,382 |
Deferral of Hawk Road and Smith Energy Facilities effect on net margin | (14,315) | |
Total operating expenses | 277,068 | 271,518 |
Operating margin | 71,093 | 68,260 |
Other income: | ||
Investment income | 12,323 | 9,849 |
Other | 2,301 | 2,859 |
Total other income | 14,624 | 12,708 |
Interest charges: | ||
Interest expense | 88,517 | 87,707 |
Allowance for debt funds used during construction | (26,380) | (26,253) |
Amortization of debt discount and expense | 2,982 | 4,145 |
Net interest charges | 65,119 | 65,599 |
Net margin | $ 20,598 | $ 15,369 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Margin - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Consolidated Statements of Comprehensive Margin | ||
Net margin | $ 20,598 | $ 15,369 |
Other comprehensive margin: | ||
Unrealized gain (loss) on available-for-sale securities | 284 | (47) |
Total comprehensive margin | $ 20,882 | $ 15,322 |
Consolidated Statements of Patr
Consolidated Statements of Patronage Capital and Membership Fees and Accumulated Other Comprehensive Margin - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Increase (Decrease) in Members' Capital | ||
Balance | $ 809,523 | $ 761,592 |
Components of comprehensive margin: | ||
Net margin | 20,598 | 15,369 |
Unrealized gain (loss) on available-for-sale securities | 284 | (47) |
Balance | 830,405 | 776,914 |
Patronage Capital and Membership Fees | ||
Increase (Decrease) in Members' Capital | ||
Balance | 809,465 | 761,124 |
Components of comprehensive margin: | ||
Net margin | 20,598 | 15,369 |
Balance | 830,063 | 776,493 |
Accumulated Other Comprehensive Margin | ||
Increase (Decrease) in Members' Capital | ||
Balance | 58 | 468 |
Components of comprehensive margin: | ||
Unrealized gain (loss) on available-for-sale securities | 284 | (47) |
Balance | $ 342 | $ 421 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities: | ||
Net margin | $ 20,598 | $ 15,369 |
Adjustments to reconcile net margin to net cash provided by operating activities: | ||
Depreciation and amortization, including nuclear fuel | 87,413 | 76,642 |
Accretion cost | 8,016 | 6,382 |
Amortization of deferred gains | (447) | (447) |
Allowance for equity funds used during construction | (177) | (173) |
Deferred outage costs | (24,869) | (17,169) |
Deferral of Hawk Road and Smith Energy Facilities effect on net margin | (14,315) | |
Gain on sale of investments | 849 | (4,687) |
Regulatory deferral of costs associated with nuclear decommissioning | (5,814) | 1,222 |
Other | (1,685) | (1,617) |
Change in operating assets and liabilities: | ||
Receivables | 4,044 | 10,471 |
Inventories | 5,253 | 18,031 |
Prepayments and other current assets | 273 | (30,174) |
Accounts payable | (39,787) | (39,364) |
Accrued interest | (5,528) | (5,703) |
Accrued taxes | (13,160) | (8,914) |
Other current liabilities | (9,777) | (10,545) |
Member power bill prepayments | (6,779) | 23,732 |
Total adjustments | (2,175) | 3,372 |
Net cash provided by operating activities | 18,423 | 18,741 |
Cash flows from investing activities: | ||
Property additions | (259,447) | (157,332) |
Activity in nuclear decommissioning trust fund - Purchases | (129,886) | (111,750) |
Activity in nuclear decommissioning trust fund - Proceeds | 128,179 | 110,666 |
Increase in restricted cash and investments | (9,419) | (586) |
Decrease (increase) in restricted short-term investments | 2,663 | (4,668) |
Activity in other long-term investments - Purchases | (14,267) | (12,045) |
Activity in other long-term investments - Proceeds | 11,639 | 11,214 |
Other | 3,147 | (5,278) |
Net cash used in investing activities | (267,391) | (169,779) |
Cash flows from financing activities: | ||
Long-term debt proceeds | 7,998 | 113,718 |
Long-term debt payments | (36,677) | (37,319) |
Increase in short-term borrowings, net | 171,280 | 109,360 |
Other | 4,422 | (408) |
Net cash provided by financing activities | 147,023 | 185,351 |
Net (decrease) increase in cash and cash equivalents | (101,945) | 34,313 |
Cash and cash equivalents at beginning of period | 213,038 | 237,391 |
Cash and cash equivalents at end of period | 111,093 | 271,704 |
Cash paid for - | ||
Interest (net of amounts capitalized) | 66,950 | 69,258 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Change in asset retirement obligations | (10,425) | |
Change in accrued property additions | (79,336) | (22,510) |
Interest paid-in-kind | $ 10,606 | $ 8,065 |
General
General | 3 Months Ended |
Mar. 31, 2016 | |
General | |
General | (A) General. The consolidated financial statements included in this report have been prepared by us pursuant to the rules and regulations of the Securities and Exchange Commission. In the opinion of management, the information furnished in this report reflects all adjustments (which include only normal recurring adjustments) and estimates necessary to fairly state, in all material respects, the results for the three-month periods ended March 31, 2016 and 2015. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to SEC rules and regulations, although we believe that the disclosures are adequate to make the information presented not misleading. Certain prior year amounts have been reclassified to conform with the current year presentation. For the three month period ended March 31, 2015, we made an adjustment of $8,065,000 in the Consolidated Statement of Cash Flows to decrease other adjustments to reconcile net margin to net cash provided by operating activities and decrease cash paid for property additions. This adjustment reflects the non-cash nature of the allowance for debt funds used during construction related to interest paid-in-kind associated with loans under our Department of Energy Loan Guarantee. The change properly reflects an immaterial adjustment to cash flows provided by operations and cash used in investing activities, and is consistent with the 2016 presentation. These consolidated financial statements should be read in conjunction with the financial statements and the notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2015, as filed with the SEC. The results of operations for the three-month period ended March 31, 2016 are not necessarily indicative of results to be expected for the full year. As noted in our 2015 Form 10-K, our revenues consist primarily of sales to our 38 electric distribution cooperative members and, thus, the receivables on the consolidated balance sheets are principally from our members. (See " Notes to Consolidated Financial Statements " in our 2015 Form 10-K.) |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value | |
Fair Value | (B) Fair Value. Authoritative guidance regarding fair value measurements for financial and non-financial assets and liabilities defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles, and expands disclosures about fair value measurements. The guidance establishes a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value as follows: • Level 1. Quoted prices from active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Quoted prices in active markets provide the most reliable evidence of fair value and are used to measure fair value whenever available. Level 1 primarily consists of financial instruments that are exchange-traded. • Level 2. Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 2 includes financial instruments that are valued using models or other valuation methodologies. These models are primarily industry-standard models that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors, and current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Level 2 primarily consists of financial instruments that are non-exchange-traded but have significant observable inputs. • Level 3. Pricing inputs that include significant inputs which are generally less observable from objective sources. These inputs may include internally developed methodologies that result in management's best estimate of fair value. Level 3 financial instruments are those whose fair value is based on significant unobservable inputs. As required by the guidance, assets and liabilities measured at fair value are based on one or more of the following three valuation techniques: 1. Market approach . The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities (including a business) and deriving fair value based on these inputs. 2. Income approach . The income approach uses valuation techniques to convert future amounts (for example, cash flows or earnings) to a single present amount (discounted). The measurement is based on the value indicated by current market expectations about those future amounts. 3. Cost approach. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset (often referred to as current replacement cost). This approach assumes that the fair value would not exceed what it would cost a market participant to acquire or construct a substitute asset or comparable utility, adjusted for obsolescence. The tables below detail assets and liabilities measured at fair value on a recurring basis at March 31, 2016 and December 31, 2015. Fair Value Measurements at Reporting Date Using March 31, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (dollars in thousands) Nuclear decommissioning trust funds: Domestic equity $ $ $ — $ — International equity trust — — Corporate bonds — — US Treasury and government agency securities — — Agency mortgage and asset backed securities — — Municipal bonds — — Other — — Long-term investments: International equity trust — — Corporate bonds — — US Treasury and government agency securities — — Agency mortgage and asset backed securities — — Mutual funds — — Other — — Interest rate options — — Natural gas swaps — — Fair Value Measurements at Reporting Date Using December 31, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (dollars in thousands) Nuclear decommissioning trust funds: Domestic equity $ $ $ — $ — International equity trust — — Corporate bonds — — US Treasury and government agency securities — Agency mortgage and asset backed securities — — Other — — Long-term investments: Corporate bonds — — US Treasury and government agency securities — — Agency mortgage and asset backed securities — — International equity trust — — Mutual funds — — Other — — Interest rate options — — Natural gas swaps — — The Level 2 investments above in corporate bonds and agency mortgage and asset backed securities may not be exchange traded. The fair value measurements for these investments are based on a market approach, including the use of observable inputs. Common inputs include reported trades and broker/dealer bid/ask prices. The fair value of the Level 2 investments above in international equity trust are calculated based on the net asset value per share of the fund. There are no unfunded commitments for the international equity trust and redemption may occur daily with a 3-day redemption notice period. The following tables present the changes in Level 3 assets measured at fair value on a recurring basis during the three months ended March 31, 2016 and 2015. Three Months Ended March 31, 2016 Interest rate options (dollars in thousands) Assets (Liabilities): Balance at December 31, 2015 $ Total gains or losses (realized/unrealized): Included in earnings (or changes in net assets) ) Balance at March 31, 2016 $ Three Months Ended March 31, 2015 Interest rate options (dollars in thousands) Assets (Liabilities): Balance at December 31, 2014 $ Total gains or losses (realized/unrealized): Included in earnings (or changes in net assets) ) Balance at March 31, 2015 $ We estimate the value of the interest rate options as the sum of time value and any intrinsic value minus a counterparty credit adjustment. Intrinsic value is the value of the underlying swap, which we are able to calculate based on the forward LIBOR swap rates, the fixed rate on the underlying swap, the time to expiration, the term of the underlying swap and discount rates, all of which we are able to effectively observe. Time value is the additional value of the swaption due to the fact that it is an option. We estimate the time value using an option pricing model which, in addition to the factors used to calculate intrinsic value, also takes into account option volatility, which we estimate based on option valuations we obtain from various sources. We estimate the counterparty credit adjustment by observing credit attributes, including the credit default swap spread of entities similar to the counterparty and the amount of credit support that is available for each swaption. Since the primary component of the LIBOR swaptions' value is time value, which is based on estimated option volatility derived from valuations of comparable instruments that are generally not publicly available, we have categorized these LIBOR swaptions as Level 3. We believe the estimated fair values for the LIBOR swaptions we hold are based on the most accurate information available for these types of derivative contracts. For additional information regarding our interest rate options, see Note C. The estimated fair values of our long-term debt, including current maturities at March 31, 2016 and December 31, 2015 were as follows (in thousands): 2016 2015 Carrying Value Fair Value Carrying Value Fair Value Long-term debt $ $ $ $ The estimated fair value of long-term debt is classified as Level 2 and is estimated based on observed or quoted market prices for the same or similar issues or on current rates offered to us for debt of similar maturities. The primary sources of our long-term debt consist of first mortgage bonds, pollution control revenue bonds and long-term debt issued by the Federal Financing Bank that is guaranteed by the Rural Utilities Service or the U.S. Department of Energy. We also have small amounts of long-term debt provided by National Rural Utilities Cooperative Finance Corporation (CFC) and by CoBank, ACB. The valuations for the first mortgage bonds and the pollution control revenue bonds were obtained from third party investment banking firms and a third party data reporting service, and are based on secondary market trading of our debt. Valuations for debt issued by the Federal Financing Bank are based on U.S. Treasury rates as of March 31, 2016 plus an applicable spread, which reflects our borrowing rate for new loans of this type from the Federal Financing Bank. The rates on the CFC debt are fixed and the valuation is based on rate quotes provided by CFC. We use an interest rate quote sheet provided by CoBank for valuation of the CoBank debt, which reflects current rates for similar loans. For cash and cash equivalents, restricted cash and receivables, the carrying amount approximates fair value because of the short-term maturity of those instruments. |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments | |
Derivative Instruments | (C) Derivative Instruments. Our risk management and compliance committee provides general oversight over all risk management and compliance activities, including but not limited to, commodity trading, investment portfolio management and interest rate risk management. We use commodity trading derivatives to manage our exposure to fluctuations in the market price of natural gas. To hedge the risk of rising interest rates on a portion of our anticipated long-term debt to be incurred in connection with capital expenditures, we have entered into interest rate options. We do not apply hedge accounting for any of these derivatives, but apply regulatory accounting. Consistent with our rate-making, unrealized gains or losses on our natural gas swaps and interest rate options are reflected as regulatory assets or liabilities, as appropriate. We are exposed to credit risk as a result of entering into these hedging arrangements. Credit risk is the potential loss resulting from a counterparty's nonperformance under an agreement. We have established policies and procedures to manage credit risk through counterparty analysis, exposure calculation and monitoring, exposure limits, collateralization and certain other contractual provisions. It is possible that volatility in commodity prices and/or interest rates could cause us to have credit risk exposures with one or more counterparties. We currently have credit risk exposure to our interest rate options counterparties. If such counterparties fail to perform their obligations, we could suffer a financial loss. However, as of March 31, 2016, all of the counterparties with transaction amounts outstanding under our hedging programs are rated investment grade by the major rating agencies or have provided a guaranty from one of their affiliates that is rated investment grade. We have entered into International Swaps and Derivatives Association agreements with our natural gas hedge and interest rate option counterparties that mitigate credit exposure by creating contractual rights relating to creditworthiness, collateral, termination and netting (which, in certain cases, allows us to use the net value of affected transactions with the same counterparty in the event of default by the counterparty or early termination of the agreement). Additionally, we have implemented procedures to monitor the creditworthiness of our counterparties and to evaluate nonperformance in valuing counterparty positions. We have contracted with a third party to assist in monitoring certain of our counterparties' credit standing and condition. Net liability positions are generally not adjusted as we use derivative transactions as hedges and have the ability and intent to perform under each of our contracts. In the instance of net asset positions, we consider general market conditions and the observable financial health and outlook of specific counterparties, forward looking data such as credit default swaps, when available, and historical default probabilities from credit rating agencies in evaluating the potential impact of nonperformance risk to derivative positions. The contractual agreements contain provisions that could require us or the counterparty to post collateral or credit support. The amount of collateral or credit support that could be required is calculated as the difference between the aggregate fair value of the hedges and pre-established credit thresholds. The credit thresholds are contingent upon each party's credit ratings from the major credit rating agencies. The collateral and credit support requirements vary by contract and by counterparty. Gas hedges. Under the natural gas swap arrangements, we pay the counterparty a fixed price for specified natural gas quantities and receive a payment for such quantities based on a market price index. These payment obligations are netted, such that if the market price index is lower than the fixed price, we will make a net payment, and if the market price index is higher than the fixed price, we will receive a net payment. At March 31, 2016 and December 31, 2015, the estimated fair value of our natural gas contracts was a net liability of approximately $25,919,000 and $22,848,000, respectively. As of March 31, 2016 and December 31, 2015, neither we nor any counterparties were required to post credit support or collateral under the natural gas swap agreements. If the credit-risk-related contingent features underlying these agreements were triggered on March 31, 2016 due to our credit rating being downgraded below investment grade, we would have been required to post letters of credit of $25,919,000 with our counterparties. The following table reflects the volume activity of our natural gas derivatives as of March 31, 2016 that is expected to settle or mature each year: Year Natural Gas Swaps (MMBTUs) (in millions) 2016 2017 2018 2019 2020 Total Interest rate options. We are exposed to the risk of rising interest rates due to the significant amount of new long-term debt we expect to incur in connection with anticipated capital expenditures, particularly the construction of Vogtle Units No. 3 and No. 4. In fourth quarter of 2011, we purchased LIBOR swaptions at a cost of $100,000,000 with a total notional amount of approximately $2,200,000,000 to hedge the interest rates on a portion of the debt that we are incurring to finance the two additional nuclear units at Plant Vogtle. Since inception, swaptions having a notional amount of approximately $1,864,393,000 have expired and, as of March 31, 2016, the remaining notional amount of our outstanding swaptions was approximately $314,810,000. The LIBOR swaptions are each designed to cap our effective interest rate at a specified fixed interest rate on a specified option expiration date. This is accomplished by means of a payment of the cash settlement value our counterparties are obligated to make to us if prevailing fixed LIBOR swap rates exceed the specified fixed rate on the option expiration date. This payment would partially offset our interest costs, thereby reducing our effective interest rate. The cash settlement value would be zero if swap rates are at or below the specified fixed rate on the expiration date. The cash settlement value is calculated based on the value of an underlying swap which we have the right, but not the obligation, to enter into, which would begin on the option expiration date and extend until 2042 and under which we would pay the specified fixed rate and receive a floating LIBOR rate. The fixed rates on the unexpired swaptions we hold average 198 basis points above the corresponding LIBOR swap rates that were in effect as of March 31, 2016, and the weighted average fixed rate is 3.93%. Swaptions having notional amounts totaling $75,892,000 expired without value during the three months ended March 31, 2016. The remaining swaptions expire quarterly through March 31, 2017. We paid all the premiums to purchase these LIBOR swaptions at the time we entered into these transactions. At March 31, 2016 and December 31, 2015, the fair value of these swaptions was approximately $95,000 and $1,010,000, respectively. To manage our credit exposure to our counterparties, we negotiated credit support provisions that require each counterparty to provide us collateral in the form of cash or securities to the extent that the value of the swaptions outstanding for that counterparty exceeds a certain threshold. The collateral thresholds can range from $0 to $10,000,000 depending on each counterparty's credit rating. As of March 31, 2016 and December 31, 2015, there were no collateral postings required of the counterparties. We are deferring realized and unrealized gains or losses from the change in fair value of each LIBOR swaption as well as related carrying and other incidental costs in accordance with our rate-making treatment. The deferral will continue until February 2020, at which time the deferred costs and deferred gains, if any, from the settlement of the interest rate options will be amortized and collected in rates over the life of the $2,200,000,000 of debt that we hedged with the swaptions. The following table reflects the remaining notional amount of forecasted debt issuances we have hedged in each year with LIBOR swaptions as of March 31, 2016. Year LIBOR Swaption Notional Dollar Amount (in thousands) 2016 $ 2017 Total $ The table below reflects the fair value of derivative instruments and their effect on our consolidated balance sheets at March 31, 2016 and December 31, 2015. Balance Sheet Location Fair Value 2016 2015 (dollars in thousands) Not designated as hedge: Assets: Interest rate options Other deferred charges $ $ Liabilities: Natural gas swaps Other current liabilities $ $ The following table presents the gross realized gains and (losses) on derivative instruments recognized in margin for the three months ended March 31, 2016 and 2015. Statement of Revenues and Expenses Three months ended March 31, Location 2016 2015 (dollars in thousands) Not Designated as hedge: Natural Gas Swaps Fuel $ $ — Natural Gas Swaps Fuel ) ) $ ) $ ) The following table presents the unrealized gains and (losses) on derivative instruments deferred on the balance sheet at March 31, 2016 and December 31, 2015. Balance Sheet Location 2016 2015 (dollars in thousands) Not designated as hedge: Natural gas swaps Regulatory asset $ ) $ ) Interest rate options Regulatory asset ) ) Total not designated as hedge $ ) $ ) The following table presents the gross amounts of derivatives and their related offset amounts as permitted by their respective master netting agreements and obligations to return cash collateral. Gross Amounts of Recognized Assets (Liabilities) Gross Amounts offset on the Balance Sheet Cash Collateral Net Amounts of Assets Presented on the Balance Sheet (dollars in thousands) March 31, 2016 Assets: Natural gas swaps $ ) $ — $ — $ ) Interest rate options $ $ ) $ — $ December 31, 2015 Assets: Natural gas swaps $ ) $ — $ — $ ) Interest rate options $ $ ) $ — $ |
Investments in Debt and Equity
Investments in Debt and Equity Securities | 3 Months Ended |
Mar. 31, 2016 | |
Investments in Debt and Equity Securities | |
Investments in Debt and Equity Securities | (D) Investments in Debt and Equity Securities. Investment securities we hold are classified as available-for-sale. Available-for-sale securities are carried at market value with unrealized gains and losses, net of any tax effect, added to or deducted from other comprehensive margin, except that, in accordance with our rate-making treatment, unrealized gains and losses from investment securities held in the nuclear decommissioning funds are directly added to or deducted from the regulatory asset for asset retirement obligations. Realized gains and losses on the nuclear decommissioning funds are also recorded to the regulatory asset. All realized and unrealized gains and losses are determined using the specific identification method. As of March 31, 2016, approximately 83% of these gross unrealized losses had been unrealized for a duration of less than one year. The following tables summarize the activities for available-for-sale securities as of March 31, 2016 and December 31, 2015. Gross Unrealized (dollars in thousands) March 31, 2016 Cost Gains Losses Fair Value Equity $ $ $ ) $ Debt ) Other — ) Total $ $ $ ) $ Gross Unrealized (dollars in thousands) December 31, 2015 Cost Gains Losses Fair Value Equity $ $ $ ) $ Debt ) Other — ) Total $ $ $ ) $ |
Recently Issued or Adopted Acco
Recently Issued or Adopted Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2016 | |
Recently Issued or Adopted Accounting Pronouncements | |
Recently Issued or Adopted Accounting Pronouncements | (E) Recently Issued or Adopted Accounting Pronouncements. In May 2014, the Financial Accounting Standards Board (FASB) issued "Revenue from Contracts with Customers" (Topic 606). The new revenue standard requires that an entity recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The standard is effective for the annual reporting period beginning after December 15, 2016 using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a modified retrospective approach with the cumulative effect of initially adopting the standard recognized at the date of adoption (which includes additional footnote disclosures). Early adoption is not permitted. In March 2016, the FASB issued an amendment to the new revenue standard, which provides guidance on assessing whether an entity is a principal or an agent in a revenue transaction. The conclusion determines whether an entity reports revenue on a gross or net basis. The amendment focuses on who controls the good or service in an arrangement before it is transferred to a customer and further clarifies the unit of account and indicators of when an entity is the principal. In April 2016, the FASB further amended the new revenue standard by clarifying: (i) how an entity should evaluate the nature of its promise in granting a license of intellectual property, which will determine whether it recognizes revenue over time or at a point in time, and (ii) when a promised good or service is separately identifiable (i.e., distinct within the context of the contract) and allowing entities to disregard items that are immaterial in the context of a contract. In August 2015, the FASB issued an update to Topic 606 deferring the effective date by one year. The standard is effective for annual reporting periods beginning after December 15, 2017 and interim periods therein. The standard also permits early adoption of the standard, but not before the original effective date of December 15, 2016. We are currently evaluating the future impact of this standard on our consolidated financial statements. In July 2015, the FASB issued "Inventory (Topic 330): Simplifying the Measurement of Inventory." Under the new inventory standard, inventories are required to be measured at the lower of cost and net realizable value, the latter representing the estimated selling price in the ordinary course of business, reduced by costs of completion, disposal, and transportation. Under current guidance, inventories are required to be measured at the lower of cost or market, but depending upon specific circumstances, market could be replacement cost, net realizable value, or net realizable value reduced by a normal profit margin. The amendments do not apply to inventory measured using the last-in, first-out or the retail inventory method. The amendments apply to all other inventory, which includes inventory that is measured using first-in, first out or average cost, the method used to measure all of our inventories. The new standard is effective for us prospectively for annual reporting periods beginning after December 15, 2016, and interim periods therein. Early adoption is permitted as of the beginning of an interim or annual reporting period. We are currently evaluating this standard but do not expect adoption of the standard to have a material impact on our consolidated financial statements. In November 2015, the FASB issued "Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes." The amendments in this standard simplifies the presentation of deferred income taxes by eliminating the separate classification of deferred income tax assets and liabilities into current and noncurrent amounts in the statement of financial position. The amendments in the update require that all deferred tax assets and liabilities be classified as noncurrent in the consolidated balance sheet. The new standard is effective for us prospectively for annual reporting periods beginning after December 15, 2016, and interim periods therein. Early adoption is permitted as of the beginning of an interim or annual reporting period. We are currently evaluating this standard but do not expect adoption of the standard to have a material impact on our consolidated financial statements. In January 2016, the FASB issued "Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities". The amendments in this update address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The new standard is effective for us for annual reporting periods beginning after December 15, 2017, and interim periods therein. Certain provisions within this update can be adopted early. Certain provisions within this update should be applied by means of a cumulative-effect adjustment to the balance sheet of the fiscal year of adoption and certain provisions should be applied prospectively. We are currently evaluating the future impact of this standard on our consolidated financial statements. In February 2016, the FASB issued "Leases (Topic 842)." The new leases standard requires a dual approach for lessee accounting under which a lessee would account for leases as finance leases or operating leases. Both finance leases and operating leases will result in the lessee recognizing a right-of-use (ROU) asset and a corresponding lease liability. For finance leases the lessee would recognize interest expense and amortization of the ROU asset and for operating leases the lessee would recognize a straight-line total lease expense. The new lease standard does not substantially change lessor accounting. The new leases standard is effective for us on a modified retrospectively approach for annual reporting periods beginning after December 15, 2018, and interim periods therein. Early adoption is permitted. We are currently evaluating the future impact of this standard on our consolidated financial statements. |
Accumulated Comprehensive Margi
Accumulated Comprehensive Margin | 3 Months Ended |
Mar. 31, 2016 | |
Accumulated Comprehensive Margin | |
Accumulated Comprehensive Margin | (F) Accumulated Comprehensive Margin. The table below provides detail of the beginning and ending balance for each classification of other comprehensive margin along with the amount of any reclassification adjustments included in margin for each of the periods presented in the unaudited Consolidated Statements of Patronage Capital and Membership Fees and Accumulated Other Comprehensive Margin. There were no material changes in the nature, timing or amounts of expected (gain) loss reclassified to net margin from the amounts disclosed in our 2015 Form 10-K. Amounts reclassified to net margin in the table below are reflected in "Other income" on our unaudited Consolidated Statements of Revenues and Expenses. Our effective tax rate is zero; therefore, all amounts below are presented net of tax. Accumulated Other Comprehensive Margin Three Months Ended (dollars in thousands) Available-for-sale Securities Balance at December 31, 2014 $ Unrealized gain (Gain) reclassified to net margin ) Balance at March 31, 2015 $ Balance at December 31, 2015 $ Unrealized gain (Gain) reclassified to net margin ) Balance at March 30, 2016 $ |
Contingencies and Regulatory Ma
Contingencies and Regulatory Matters | 3 Months Ended |
Mar. 31, 2016 | |
Contingencies And Regulatory Matters Disclosure Abstract | |
Contingencies and Regulatory Matters | (G) Contingencies and Regulatory Matters. We do not anticipate that the liabilities, if any, for any current proceedings against us will have a material effect on our financial condition or results of operations. However, at this time, the ultimate outcome of any pending or potential litigation cannot be determined. a. Nuclear Construction In 2008, Georgia Power, acting for itself and as agent for us, the Municipal Electric Authority of Georgia and the City of Dalton, Georgia, acting by and through its Board of Water, Light and Sinking Fund Commissioners, doing business as Dalton Utilities (collectively, the Co-owners) and Westinghouse Electric Company LLC and Stone & Webster, Inc. (collectively, the Contractor) entered into an Engineering, Procurement and Construction Agreement (the EPC Agreement). Pursuant to the EPC Agreement, the Contractor will design, engineer, procure, construct and test two 1,100 megawatt nuclear units using the Westinghouse AP1000 technology and related facilities at Plant Vogtle, Units No. 3 and No. 4. Our ownership interest and proportionate share of the cost to construct these units is 30%, representing 660 megawatts of total capacity. On December 31, 2015, Westinghouse and the Co-owners entered into a settlement agreement to resolve certain disputes between the Co-owners and the Contractor under the EPC Agreement which were dismissed with prejudice on January 5, 2016. Future claims by the Contractor or Georgia Power, on behalf of the Co-owners, could arise throughout construction. These claims may be resolved through formal and informal dispute resolution procedures under the EPC Agreement and, under the resolution procedures, may be resolved through litigation after the completion of nuclear fuel load for both units. For additional information about the Vogtle construction project, see "Item 8—FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA— Notes to Consolidated Financial Statements " in our 2015 Form 10-K. b. Patronage Capital Litigation On March 13, 2014, a lawsuit was filed in the Superior Court of DeKalb County, Georgia, against us, Georgia Transmission and three of our member distribution cooperatives. Plaintiffs filed an amended complaint on July 28, 2014. The amended complaint challenges the patronage capital distribution practices of Georgia's electric cooperatives and seeks to certify a defendant class of all but one of our 38 members. It was filed by four former consumer-members of four of our members on behalf of themselves and a proposed class of all former consumer-members of our members. Plaintiffs claim that approximately 30% of all the defendants' total allocated patronage capital belongs to former consumer-members. Plaintiffs also allege that patronage capital owed to former consumer-members includes patronage capital allocated by us to our members but not yet distributed to our members. Plaintiffs claim that the patronage capital of former consumer-members held by defendants and the proposed defendant class should be retired immediately when the consumer-members end their membership by terminating service, or alternatively, according to a revolving schedule of no longer than 13 years from the date of its allocation and seek relief to effect such retirements. Plaintiffs further seek to require the defendants to adjust rates in order to establish and maintain reasonable reserves to fund patronage capital retirements on this basis. Plaintiffs also claim that defendants and the proposed defendant class should be required to adopt policies to periodically retire the patronage capital of all consumer-members on a revolving schedule of no longer than 13 years from the date of its allocation. Our first mortgage indenture restricts our ability to distribute patronage capital. Although not expected, if we were ordered by the Court to make distributions of our patronage capital, our first mortgage indenture would require us to raise our rates to a level sufficient so that we could comply with the current patronage capital distribution restrictions, and the rate increases required to meet the Plaintiffs' demands would be significant for a period of years. On August 20, 2014, a second patronage capital lawsuit was filed in the Superior Court of DeKalb County against us, Georgia Transmission, and two of our member distribution cooperatives. The case was filed by two current consumer-members of the two member distribution cooperatives named in the lawsuit. Similar to the above described litigation, this complaint challenges the patronage capital distribution practices of Georgia's electric cooperatives; however, one notable difference is that the first case, described above, seeks to bring claims on behalf of former members while this second case seeks to bring claims on behalf of current members. The plaintiffs allege that the defendants have (i) retained patronage capital for an unreasonably long period of time; (ii) conspired with each other to deprive consumer-members of their patronage capital; and (iii) breached bylaw provisions allegedly requiring that patronage capital be retired when the financial condition of the cooperative will not be impaired. The plaintiffs seek unspecified damages and equitable relief, including an order declaring that the defendants be required to retire patronage capital "according to a regular, reasonable revolving plan." Similarly to the litigation described above, although not expected, if we were ordered by the Court to make distributions of our patronage capital, our first mortgage indenture would require us to raise our rates to a level where we could comply with current patronage capital distribution restrictions, and the rate increases required to meet the Plaintiff's demands could be significant for a period of years. The plaintiffs seek to certify three plaintiffs' classes but do not seek to certify a defendants' class. In May 2015, the Superior Court judge appointed a special master to oversee all pre-trial issues relating to these cases, including motions to dismiss that we and the other defendants filed in connection with each lawsuit. In September, the special master issued proposed orders to the judge to grant our and the other defendants' motions to dismiss both patronage capital lawsuits on all counts. On May 2, 2016, the Superior Court judge adopted the special master's proposed orders and granted our and the other defendants' motions to dismiss both of these lawsuits on all counts. The Court's decision remains subject to appeal. We intend to defend vigorously against all claims in the above-described litigation. c. Environmental Matters As is typical for electric utilities, we are subject to various federal, state and local environmental laws which represent significant future risks and uncertainties. Air emissions, water discharges and water usage are extensively controlled, closely monitored and periodically reported. Handling and disposal requirements govern the manner of transportation, storage and disposal of various types of waste. We are also subject to climate change regulations that impose restrictions on emissions of greenhouse gases, including carbon dioxide, for certain new and modified facilities. In general, these and other types of environmental requirements are becoming increasingly stringent. Such requirements may substantially increase the cost of electric service, by requiring modifications in the design or operation of existing facilities or the purchase of emission allowances. Failure to comply with these requirements could result in civil and criminal penalties and could include the complete shutdown of individual generating units not in compliance. Certain of our debt instruments require us to comply in all material respects with laws, rules, regulations and orders imposed by applicable governmental authorities, which include current and future environmental laws or regulations. Should we fail to be in compliance with these requirements, it would constitute a default under those debt instruments. We believe that we are in compliance with those environmental regulations currently applicable to our business and operations. Although it is our intent to comply with current and future regulations, we cannot provide assurance that we will always be in compliance. At this time, the ultimate impact of any new and more stringent environmental regulations described above is uncertain and could have an effect on our financial condition, results of operations and cash flows as a result of future additional capital expenditures and increased operations and maintenance costs. Additionally, litigation over environmental issues and claims of various types, including property damage, personal injury, common law nuisance, and citizen enforcement of environmental requirements such as air quality and water standards, has increased generally throughout the United States. In particular, personal injury and other claims for damages caused by alleged exposure to hazardous materials, and common law nuisance claims for injunctive relief, personal injury and property damage allegedly caused by coal combustion residue, greenhouse gas and other emissions have become more frequent. |
Restricted Cash and Investments
Restricted Cash and Investments | 3 Months Ended |
Mar. 31, 2016 | |
Restricted Cash and Investments. | |
Restricted Cash and Investments | (H) Restricted Cash and Investments. Restricted cash and investments primarily consist of funds on deposit with the Rural Utilities Service in the Cushion of Credit Account. The restricted investments will be utilized for future Rural Utilities Service Federal Financing Bank debt service payments. The funds on deposit earn interest at a rate of 5% per annum. At March 31, 2016 and December 31, 2015, we had restricted cash and investments totaling $394,717,000 and $387,961,000, respectively, of which $144,109,000 and $134,690,000, respectively, were classified as long-term. |
Regulatory Assets and Liabiliti
Regulatory Assets and Liabilities | 3 Months Ended |
Mar. 31, 2016 | |
Regulatory Assets and Liabilities | |
Regulatory Assets and Liabilities | (I) Regulatory Assets and Liabilities. We apply the accounting guidance for regulated operations. Regulatory assets represent certain costs that are probable of recovery from our members in future revenues through rates under the wholesale power contracts with our members extending through December 31, 2050. Regulatory liabilities represent certain items of income that we are retaining and that will be applied in the future to reduce revenues required to be recovered from our members. The following regulatory assets and liabilities are reflected on the unaudited consolidated balance sheets as of March 31, 2016 and December 31, 2015. 2016 2015 (dollars in thousands) Regulatory Assets: Premium and loss on reacquired debt (a) $ $ Amortization on capital leases (b) Outage costs (c) Interest rate swap termination fees (d) Depreciation expense (e) Deferred charges related to Vogtle Units No. 3 and No. 4 training costs (f) Interest rate options cost (g) Deferral of effects on net margin—Smith Energy Facility (h) Other regulatory assets (m) Total Regulatory Assets $ $ Regulatory Liabilities: Accumulated retirement costs for other obligations (i) $ $ Deferral of effects on net margin—Hawk Road Energy Facility (h) Major maintenance reserve (j) Amortization on capital leases (b) Deferred debt service adder (k) Asset retirement obligations (l) Other regulatory liabilities (m) Total Regulatory Liabilities $ $ Net Regulatory Assets $ $ (a) Represents premiums paid, together with unamortized transaction costs related to reacquired debt that are being amortized over the lives of the refunding debt, which range up to 28 years. (b) Represents the difference between expense recognized for rate-making purposes and financial statement purposes related to capital lease payments and the aggregate of the amortization of the asset and interest on the obligation. (c) Consists of both coal-fired maintenance and nuclear refueling outage costs. Coal-fired maintenance outage costs are amortized on a straight-line basis to expense over a 24-month period. Nuclear refueling outage costs are amortized on a straight-line basis to expense over the 18 to 24-month operating cycles of each unit. (d) Represents losses on settled interest rate swap arrangements that are being amortized through 2016 and 2019. (e) Prior to Nuclear Regulatory Commission (NRC) approval of a 20-year license extension for Plant Vogtle, we deferred the difference between Plant Vogtle depreciation expense based on the then 40-year operating license and depreciation expense assuming an expected 20-year license extension. Amortization commenced upon NRC approval of the license extension in 2009 and is being amortized over the remaining life of the plant. (f) Deferred charges related to Vogtle Units No. 3 and No. 4 training and interest related carrying costs of such training. Amortization will commence effective with the commercial operation date of each unit and amortized to expense over the life of the units. (g) Deferral of net loss associated with the unrealized and realized change in fair value of interest rate options purchased to hedge interest rates on certain borrowings related to Vogtle Units No.3 and No.4 construction. Amortization will commence in February 2020 and will be amortized through February 2044, the life of the DOE-guaranteed loan which is financing a portion of the construction project. (h) Effects on net margin for Smith and Hawk Road Energy Facilities were deferred through the end of 2015 and are being amortized over the remaining life of each respective plant. (i) Represents the accrual of retirement costs associated with long-lived assets for which there are no legal obligations to retire the assets. (j) Represents collections for future major maintenance expenses; revenues are recognized as major maintenance costs are incurred. (k) Represents collections to fund certain debt payments to be made through the end of 2025 which will be in excess of amounts collected through depreciation expense; the deferred credits will be amortized over the remaining useful life of the plants. (l) Represents difference in timing of recognition of the costs of decommissioning for financial statement purposes and for ratemaking purposes. (m) The amortization period for other regulatory assets range up to 34 years and the amortization period of other regulatory liabilities range up to 11 years. |
Member Power Bill Prepayments
Member Power Bill Prepayments | 3 Months Ended |
Mar. 31, 2016 | |
Member Power Bill Prepayments Disclosure Abstract | |
Member Power Bill Prepayments | (J) Member Power Bill Prepayments. We have a power bill prepayment program pursuant to which members can prepay their power bills from us at a discount based on our avoided cost of borrowing. The prepayments are credited against the participating members' power bills in the month(s) agreed upon in advance. The discounts are credited against the power bills and are recorded as a reduction to member revenues. The prepayments are being credited against members' power bills through July 2021, with the majority of the balance scheduled to be credited by the end of 2016. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2016 | |
Debt | |
Debt | (K) Debt. a) Department of Energy Loan Guarantee: Pursuant to the loan guarantee program established under Title XVII of the Energy Policy Act of 2005 (the "Title XVII Loan Guarantee Program"), we and the U.S. Department of Energy, acting by and through the Secretary of Energy, entered into a Loan Guarantee Agreement on February 20, 2014 pursuant to which the Department of Energy agreed to guarantee our obligations under the Note Purchase Agreement dated as of February 20, 2014 (the "Note Purchase Agreement"), among us, the Federal Financing Bank and the Department of Energy and two future advance promissory notes, each dated February 20, 2014, made by us to the Federal Financing Bank (the "Federal Financing Bank Notes" and together with the Note Purchase Agreement, the "FFB Credit Facility Documents"). The FFB Credit Facility Documents provide for a multi-advance term loan facility (the "Facility"), under which we may make term loan borrowings through the Federal Financing Bank. Proceeds of advances made under the Facility will be used to reimburse us for a portion of certain costs of construction relating to Vogtle Units No. 3 and No. 4 that are eligible for financing under the Title XVII Loan Guarantee Program ("Eligible Project Costs"). Aggregate borrowings under the Facility may not exceed $3,057,069,461 of which $335,471,604 is designated for capitalized interest. Advances may be requested under the Facility on a quarterly basis through December 31, 2020. At March 31, 2016, aggregate borrowings totaled $1,191,234,000, including capitalized interest. b) Rural Utilities Service Guarantees Loans: For the three month period ended March 31, 2016, we received advances on Rural Utilities Service-guaranteed Federal Financing Bank loans totaling $7,998,000 for general and environmental improvements at existing plants. On April 28, 2016, we received an additional $74,435,000 in advances on Rural Utilities Service-guaranteed Federal Financing Bank loans for general and environmental improvements at existing plants. c) Bond Issuance: On April 21, 2016, we issued $250,000,000 of 4.25% first mortgage bonds, Series 2016A primarily for the purpose of providing long-term financing for expenditures related to Vogtle Units No. 3 and No. 4 and the Smith Energy Facility. In conjunction with the issuance of the bonds, we repaid $129,737,500 of outstanding commercial paper, which was classified as long-term debt at March 31, 2016. The bonds are secured under our first mortgage indenture. |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value | |
Schedule of assets and liabilities measured at fair value on a recurring basis | Fair Value Measurements at Reporting Date Using March 31, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (dollars in thousands) Nuclear decommissioning trust funds: Domestic equity $ $ $ — $ — International equity trust — — Corporate bonds — — US Treasury and government agency securities — — Agency mortgage and asset backed securities — — Municipal bonds — — Other — — Long-term investments: International equity trust — — Corporate bonds — — US Treasury and government agency securities — — Agency mortgage and asset backed securities — — Mutual funds — — Other — — Interest rate options — — Natural gas swaps — — Fair Value Measurements at Reporting Date Using December 31, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (dollars in thousands) Nuclear decommissioning trust funds: Domestic equity $ $ $ — $ — International equity trust — — Corporate bonds — — US Treasury and government agency securities — Agency mortgage and asset backed securities — — Other — — Long-term investments: Corporate bonds — — US Treasury and government agency securities — — Agency mortgage and asset backed securities — — International equity trust — — Mutual funds — — Other — — Interest rate options — — Natural gas swaps — — |
Schedule of changes in Level 3 assets measured at fair value on a recurring basis | Three Months Ended March 31, 2016 Interest rate options (dollars in thousands) Assets (Liabilities): Balance at December 31, 2015 $ Total gains or losses (realized/unrealized): Included in earnings (or changes in net assets) ) Balance at March 31, 2016 $ Three Months Ended March 31, 2015 Interest rate options (dollars in thousands) Assets (Liabilities): Balance at December 31, 2014 $ Total gains or losses (realized/unrealized): Included in earnings (or changes in net assets) ) Balance at March 31, 2015 $ |
Schedule of estimated fair values of long-term debt, including current maturities | 2016 2015 Carrying Value Fair Value Carrying Value Fair Value Long-term debt $ $ $ $ |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments | |
Schedule of volume activity of natural gas derivatives that is expected to settle or mature each year | Year Natural Gas Swaps (MMBTUs) (in millions) 2016 2017 2018 2019 2020 Total |
Schedule of remaining notional amount of forecasted debt issuances hedged in each year with LIBOR swaptions | Year LIBOR Swaption Notional Dollar Amount (in thousands) 2016 $ 2017 Total $ |
Schedule of fair value of derivative instruments and their effect on consolidated balance sheets | Balance Sheet Location Fair Value 2016 2015 (dollars in thousands) Not designated as hedge: Assets: Interest rate options Other deferred charges $ $ Liabilities: Natural gas swaps Other current liabilities $ $ |
Schedule of the gross realized gains and (losses) on derivative instruments recognized in margin | Statement of Revenues and Expenses Three months ended March 31, Location 2016 2015 (dollars in thousands) Not Designated as hedge: Natural Gas Swaps Fuel $ $ — Natural Gas Swaps Fuel ) ) $ ) $ ) |
Schedule of unrealized gains and (losses) on derivative instruments deferred on the balance sheet | Balance Sheet Location 2016 2015 (dollars in thousands) Not designated as hedge: Natural gas swaps Regulatory asset $ ) $ ) Interest rate options Regulatory asset ) ) Total not designated as hedge $ ) $ ) |
Schedule of gross amounts of derivatives and their related offset amounts as permitted by their respective master netting agreements and obligations to return cash collateral | Gross Amounts of Recognized Assets (Liabilities) Gross Amounts offset on the Balance Sheet Cash Collateral Net Amounts of Assets Presented on the Balance Sheet (dollars in thousands) March 31, 2016 Assets: Natural gas swaps $ ) $ — $ — $ ) Interest rate options $ $ ) $ — $ December 31, 2015 Assets: Natural gas swaps $ ) $ — $ — $ ) Interest rate options $ $ ) $ — $ |
Investments in Debt and Equit20
Investments in Debt and Equity Securities (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Investments in Debt and Equity Securities | |
Summary of activities for available-for-sale securities | Gross Unrealized (dollars in thousands) March 31, 2016 Cost Gains Losses Fair Value Equity $ $ $ ) $ Debt ) Other — ) Total $ $ $ ) $ Gross Unrealized (dollars in thousands) December 31, 2015 Cost Gains Losses Fair Value Equity $ $ $ ) $ Debt ) Other — ) Total $ $ $ ) $ |
Accumulated Comprehensive Mar21
Accumulated Comprehensive Margin (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Accumulated Comprehensive Margin | |
Schedule of changes in accumulated other comprehensive margin | Accumulated Other Comprehensive Margin Three Months Ended (dollars in thousands) Available-for-sale Securities Balance at December 31, 2014 $ Unrealized gain (Gain) reclassified to net margin ) Balance at March 31, 2015 $ Balance at December 31, 2015 $ Unrealized gain (Gain) reclassified to net margin ) Balance at March 30, 2016 $ |
Regulatory Assets and Liabili22
Regulatory Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Regulatory Assets and Liabilities | |
Schedule of regulatory assets and liabilities | 2016 2015 (dollars in thousands) Regulatory Assets: Premium and loss on reacquired debt (a) $ $ Amortization on capital leases (b) Outage costs (c) Interest rate swap termination fees (d) Depreciation expense (e) Deferred charges related to Vogtle Units No. 3 and No. 4 training costs (f) Interest rate options cost (g) Deferral of effects on net margin—Smith Energy Facility (h) Other regulatory assets (m) Total Regulatory Assets $ $ Regulatory Liabilities: Accumulated retirement costs for other obligations (i) $ $ Deferral of effects on net margin—Hawk Road Energy Facility (h) Major maintenance reserve (j) Amortization on capital leases (b) Deferred debt service adder (k) Asset retirement obligations (l) Other regulatory liabilities (m) Total Regulatory Liabilities $ $ Net Regulatory Assets $ $ (a) Represents premiums paid, together with unamortized transaction costs related to reacquired debt that are being amortized over the lives of the refunding debt, which range up to 28 years. (b) Represents the difference between expense recognized for rate-making purposes and financial statement purposes related to capital lease payments and the aggregate of the amortization of the asset and interest on the obligation. (c) Consists of both coal-fired maintenance and nuclear refueling outage costs. Coal-fired maintenance outage costs are amortized on a straight-line basis to expense over a 24-month period. Nuclear refueling outage costs are amortized on a straight-line basis to expense over the 18 to 24-month operating cycles of each unit. (d) Represents losses on settled interest rate swap arrangements that are being amortized through 2016 and 2019. (e) Prior to Nuclear Regulatory Commission (NRC) approval of a 20-year license extension for Plant Vogtle, we deferred the difference between Plant Vogtle depreciation expense based on the then 40-year operating license and depreciation expense assuming an expected 20-year license extension. Amortization commenced upon NRC approval of the license extension in 2009 and is being amortized over the remaining life of the plant. (f) Deferred charges related to Vogtle Units No. 3 and No. 4 training and interest related carrying costs of such training. Amortization will commence effective with the commercial operation date of each unit and amortized to expense over the life of the units. (g) Deferral of net loss associated with the unrealized and realized change in fair value of interest rate options purchased to hedge interest rates on certain borrowings related to Vogtle Units No.3 and No.4 construction. Amortization will commence in February 2020 and will be amortized through February 2044, the life of the DOE-guaranteed loan which is financing a portion of the construction project. (h) Effects on net margin for Smith and Hawk Road Energy Facilities were deferred through the end of 2015 and are being amortized over the remaining life of each respective plant. (i) Represents the accrual of retirement costs associated with long-lived assets for which there are no legal obligations to retire the assets. (j) Represents collections for future major maintenance expenses; revenues are recognized as major maintenance costs are incurred. (k) Represents collections to fund certain debt payments to be made through the end of 2025 which will be in excess of amounts collected through depreciation expense; the deferred credits will be amortized over the remaining useful life of the plants. (l) Represents difference in timing of recognition of the costs of decommissioning for financial statement purposes and for ratemaking purposes. (m) The amortization period for other regulatory assets range up to 34 years and the amortization period of other regulatory liabilities range up to 11 years. |
General - General information (
General - General information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
General | ||
Decrease in other adjustments to reconcile net margin to net cash provided by operating activities | $ (1,685,000) | $ (1,617,000) |
Decrease in cash paid for property additions | $ (259,447,000) | (157,332,000) |
Adjustments | ||
General | ||
Decrease in other adjustments to reconcile net margin to net cash provided by operating activities | 8,065,000 | |
Decrease in cash paid for property additions | $ 8,065,000 |
General - Electric distribution
General - Electric distribution cooperative members (Details) | 3 Months Ended |
Mar. 31, 2016item | |
General | |
Number of electric distribution cooperative members | 38 |
Fair Value - Asset and liabilit
Fair Value - Asset and liabilities measured at fair value on a recurring basis (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Fair value measurement | ||
Long-term investments | $ 90,470,000 | $ 86,771,000 |
Interest rate options | ||
Fair value measurement | ||
Derivative assets | 95,000 | 1,010,000 |
Natural gas swaps | ||
Fair value measurement | ||
Derivative liabilities | 25,919,000 | 22,848,000 |
International equity trust | ||
Fair value measurement | ||
Unfunded commitments | $ 0 | |
Redemption notice period | 3 days | |
Recurring basis | Interest rate options | ||
Fair value measurement | ||
Derivative assets | $ 95,000 | 1,010,000 |
Recurring basis | Natural gas swaps | ||
Fair value measurement | ||
Derivative liabilities | 25,919,000 | 24,995,000 |
Recurring basis | Domestic equity | ||
Fair value measurement | ||
Nuclear decommissioning trust funds | 152,412,000 | 151,178,000 |
Recurring basis | International equity trust | ||
Fair value measurement | ||
Nuclear decommissioning trust funds | 69,040,000 | 68,753,000 |
Long-term investments | 12,904,000 | 12,846,000 |
Recurring basis | Corporate bonds | ||
Fair value measurement | ||
Nuclear decommissioning trust funds | 46,223,000 | 48,450,000 |
Long-term investments | 9,516,000 | 9,903,000 |
Recurring basis | US Treasury and government agency securities | ||
Fair value measurement | ||
Nuclear decommissioning trust funds | 80,644,000 | 75,173,000 |
Long-term investments | 14,692,000 | 13,772,000 |
Recurring basis | Agency mortgage and asset backed securities | ||
Fair value measurement | ||
Nuclear decommissioning trust funds | 16,463,000 | 15,503,000 |
Long-term investments | 1,482,000 | 1,121,000 |
Recurring basis | Municipal Bonds | ||
Fair value measurement | ||
Nuclear decommissioning trust funds | 380,000 | |
Recurring basis | Mutual funds | ||
Fair value measurement | ||
Long-term investments | 51,721,000 | 48,649,000 |
Recurring basis | Other | ||
Fair value measurement | ||
Nuclear decommissioning trust funds | 4,279,000 | 4,772,000 |
Long-term investments | 155,000 | 479,000 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Domestic equity | ||
Fair value measurement | ||
Nuclear decommissioning trust funds | 152,412,000 | 151,178,000 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | US Treasury and government agency securities | ||
Fair value measurement | ||
Nuclear decommissioning trust funds | 80,644,000 | 74,698,000 |
Long-term investments | 14,692,000 | 13,772,000 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Mutual funds | ||
Fair value measurement | ||
Long-term investments | 51,721,000 | 48,649,000 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other | ||
Fair value measurement | ||
Nuclear decommissioning trust funds | 4,279,000 | 4,772,000 |
Long-term investments | 155,000 | 479,000 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Natural gas swaps | ||
Fair value measurement | ||
Derivative liabilities | 25,919,000 | 24,995,000 |
Recurring basis | Significant Other Observable Inputs (Level 2) | International equity trust | ||
Fair value measurement | ||
Nuclear decommissioning trust funds | 69,040,000 | 68,753,000 |
Long-term investments | 12,904,000 | 12,846,000 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Corporate bonds | ||
Fair value measurement | ||
Nuclear decommissioning trust funds | 46,223,000 | 48,450,000 |
Long-term investments | 9,516,000 | 9,903,000 |
Recurring basis | Significant Other Observable Inputs (Level 2) | US Treasury and government agency securities | ||
Fair value measurement | ||
Nuclear decommissioning trust funds | 475,000 | |
Recurring basis | Significant Other Observable Inputs (Level 2) | Agency mortgage and asset backed securities | ||
Fair value measurement | ||
Nuclear decommissioning trust funds | 16,463,000 | 15,503,000 |
Long-term investments | 1,482,000 | 1,121,000 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Municipal Bonds | ||
Fair value measurement | ||
Nuclear decommissioning trust funds | 380,000 | |
Recurring basis | Significant Unobservable Inputs (Level 3) | Interest rate options | ||
Fair value measurement | ||
Derivative assets | $ 95,000 | $ 1,010,000 |
Fair Value - Changes in Level 3
Fair Value - Changes in Level 3 assets (Details) - Interest rate options - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Assets (Liabilities): | ||
Balance at the beginning of the period | $ 1,010 | $ 4,371 |
Total gains or losses (realized/unrealized): | ||
Included in earnings (or changes in net assets) | (915) | (1,669) |
Balance at the end of the period | $ 95 | $ 2,702 |
Fair Value - Estimated fair val
Fair Value - Estimated fair value of long-term debt (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Carrying Value | ||
Grouping Financial Statement Captions | ||
Long-term debt | $ 7,686,691 | $ 7,575,027 |
Total Fair Value | ||
Grouping Financial Statement Captions | ||
Long-term debt | $ 8,991,014 | $ 8,445,630 |
Derivative Instruments - Volume
Derivative Instruments - Volume activity of natural gas derivatives (Details) - Natural gas swaps item in Millions | Mar. 31, 2016USD ($)item | Dec. 31, 2015USD ($) |
Gas hedges | ||
Derivative liabilities | $ | $ 25,919,000 | $ 22,848,000 |
Letters of credit required to be posted with counterparties, if credit-risk-related contingent features were triggered due to credit rating being downgraded below investment grade | $ | $ 25,919,000 | |
Derivative volume activity that is expected to settle or mature each year (in MMBTUs) | 67.6 | |
2,016 | ||
Gas hedges | ||
Derivative volume activity that is expected to settle or mature each year (in MMBTUs) | 21.6 | |
2,017 | ||
Gas hedges | ||
Derivative volume activity that is expected to settle or mature each year (in MMBTUs) | 18.1 | |
2,018 | ||
Gas hedges | ||
Derivative volume activity that is expected to settle or mature each year (in MMBTUs) | 15.4 | |
2,019 | ||
Gas hedges | ||
Derivative volume activity that is expected to settle or mature each year (in MMBTUs) | 10 | |
2,020 | ||
Gas hedges | ||
Derivative volume activity that is expected to settle or mature each year (in MMBTUs) | 2.5 |
Derivative Instruments - Intere
Derivative Instruments - Interest rate options (Details) - Interest rate options | 3 Months Ended | ||
Mar. 31, 2016USD ($) | Dec. 31, 2011USD ($)item | Dec. 31, 2015USD ($) | |
Derivative instruments and hedging activities | |||
Purchased amount of derivative instrument | $ 100,000,000 | ||
Notional Dollar Amount | $ 314,810,000 | $ 2,200,000,000 | |
Number of nuclear units expected to be financed | item | 2 | ||
Derivative notional amount expired | 1,864,393,000 | ||
Derivative remaining notional amount | 314,810,000 | ||
Cash settlement value, if swap rates are at or below the specified fixed rate on the expiration date | $ 0 | ||
Weighted average fixed rate (as a percent) | 3.93% | ||
Notional amount of derivatives, expired without value | $ 75,892,000 | ||
Fair value of assets | 95,000 | $ 1,010,000 | |
Funds posted as collateral of the counterparties | 0 | $ 0 | |
2,016 | |||
Derivative instruments and hedging activities | |||
Notional Dollar Amount | 234,641,000 | ||
2,017 | |||
Derivative instruments and hedging activities | |||
Notional Dollar Amount | $ 80,169,000 | ||
LIBOR | |||
Derivative instruments and hedging activities | |||
Variable rate basis | LIBOR | ||
Minimum | |||
Derivative instruments and hedging activities | |||
Collateral thresholds range | $ 0 | ||
Maximum | |||
Derivative instruments and hedging activities | |||
Collateral thresholds range | $ 10,000,000 | ||
Average | LIBOR | |||
Derivative instruments and hedging activities | |||
Basis spread (as a percent) | 1.98% | ||
Department of Energy-guaranteed loan | |||
Derivative instruments and hedging activities | |||
Hedged amount of expected debt | $ 2,200,000,000 |
Derivative Instruments - Fair v
Derivative Instruments - Fair value of derivative instruments not designated as hedging (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Interest rate options | ||
Assets: | ||
Fair value of assets | $ 95,000 | $ 1,010,000 |
Natural gas swaps | ||
Liabilities: | ||
Fair Value of liabilities | 25,919,000 | 22,848,000 |
Not designated as hedge | Interest rate options | Other deferred charges | ||
Assets: | ||
Fair value of assets | 95,000 | 1,010,000 |
Not designated as hedge | Natural gas swaps | Other current liabilities | ||
Liabilities: | ||
Fair Value of liabilities | $ 25,919,000 | $ 22,848,000 |
Derivative Instruments - Realiz
Derivative Instruments - Realized and unrealized gains and (losses) on derivative instruments (Details) - Not designated as hedge - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Effect of Derivative Instruments on the Condensed Statement of Revenues and Expenses or Balance Sheet | |||
Unrealized gains and (losses) on derivatives | $ (47,881) | $ (48,763) | |
Natural gas swaps | Regulatory Asset | |||
Effect of Derivative Instruments on the Condensed Statement of Revenues and Expenses or Balance Sheet | |||
Unrealized losses on derivatives | (25,919) | (22,848) | |
Natural gas swaps | Fuel | |||
Effect of Derivative Instruments on the Condensed Statement of Revenues and Expenses or Balance Sheet | |||
Gains | 11 | ||
Losses | (4,228) | $ (5,527) | |
Total gains (losses) on derivatives | (4,217) | $ (5,527) | |
Interest rate options | Regulatory Asset | |||
Effect of Derivative Instruments on the Condensed Statement of Revenues and Expenses or Balance Sheet | |||
Unrealized losses on derivatives | $ (21,962) | $ (25,915) |
Derivative Instruments - Master
Derivative Instruments - Master netting agreements (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Natural gas swaps | ||
Liabilities: | ||
Gross Amounts of Recognized Assets (Liabilities) | $ (25,919) | $ (22,848) |
Net Amounts of (Liabilities) Presented on the Balance Sheet | (25,919) | (22,848) |
Interest rate options | ||
Assets: | ||
Gross Amounts of Recognized Assets (Liabilities) | 22,057 | 26,925 |
Gross Amounts offset on the Balance Sheets | (21,962) | (25,915) |
Net Amounts of Assets Presented on the Balance Sheet | $ 95 | $ 1,010 |
Investments in Debt and Equit33
Investments in Debt and Equity Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Available-for-sale securities | ||
Available-for-sale securities, gross unrealized losses that were in effect for less than one year (as a percent) | 83.00% | |
Cost | $ 428,564 | $ 425,078 |
Gains | 42,498 | 38,652 |
Losses | (11,151) | (13,130) |
Fair Value | 459,911 | 450,600 |
Equity | ||
Available-for-sale securities | ||
Cost | 231,117 | 230,123 |
Gains | 39,324 | 37,494 |
Losses | (9,263) | (9,635) |
Fair Value | 261,178 | 257,982 |
Debt. | ||
Available-for-sale securities | ||
Cost | 193,012 | 189,700 |
Gains | 3,174 | 1,158 |
Losses | (1,887) | (3,491) |
Fair Value | 194,299 | 187,367 |
Other | ||
Available-for-sale securities | ||
Cost | 4,435 | 5,255 |
Losses | (1) | (4) |
Fair Value | $ 4,434 | $ 5,251 |
Accumulated Comprehensive Mar34
Accumulated Comprehensive Margin (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Accumulated Comprehensive Margin | ||
Effective income tax rate (as a percent) | 0.00% | |
Accumulated Comprehensive Margin | ||
Balance at the beginning of the period | $ 58 | $ 468 |
Unrealized gain | 294 | 107 |
(Gain) reclassified to net margin | (10) | (154) |
Balance at the end of the period | $ 342 | $ 421 |
Contingencies and Regulatory 35
Contingencies and Regulatory Matters (Details) | Aug. 20, 2014item | Jul. 28, 2014item | Mar. 13, 2014item | Mar. 31, 2016item | Dec. 31, 2008itemMW |
Patronage Capital Litigation | |||||
Number of electric distribution cooperative members | 38 | ||||
Vogtle Units Number 3 And Number 4 | |||||
Nuclear Construction | |||||
Number of Westinghouse AP1000 nuclear generating units | 2 | ||||
Nominally rated generating capacity for each unit | MW | 1,100 | ||||
Ownership interest of nuclear units (as a percent) | 30.00% | ||||
Nominally rated generating capacity | MW | 660 | ||||
Patronage Capital Litigation | |||||
Patronage Capital Litigation | |||||
Number of defendant members | 2 | 3 | |||
Number of excluded members against whom defendant class action is certified | 1 | ||||
Number of electric distribution cooperative members | 38 | ||||
Number of former consumer members | 4 | ||||
Number of members in which the former consumer members filing the lawsuit belonged | 4 | ||||
Percentage of cooperatives total booked patronage capital | 30.00% | ||||
Number of current consumer members | 2 | ||||
Number of plaintiffs | 3 | ||||
Patronage Capital Litigation | Maximum | |||||
Patronage Capital Litigation | |||||
Period of revolving schedule to retire the patronage capital of former consumer-members | 13 years | ||||
Period of revolving schedule to adopt policies to periodically retire the patronage capital of all consumer-members | 13 years |
Restricted Cash and Investmen36
Restricted Cash and Investments (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Restricted Cash and Investments. | ||
Guaranteed interest rate on deposit with Rural Utilities Service (as a percent) | 5.00% | 5.00% |
Restricted cash and investments | $ 394,717,000 | $ 387,961,000 |
Restricted cash and investments, noncurrent | $ 144,109,000 | $ 134,690,000 |
Regulatory Assets and Liabili37
Regulatory Assets and Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Regulatory Assets and Liabilities | ||
Total Regulatory Assets | $ 554,494 | $ 530,254 |
Total Regulatory Liabilities | 177,351 | 166,967 |
Net Regulatory Assets | 377,143 | 363,287 |
Accumulated retirement costs for other obligations | ||
Regulatory Assets and Liabilities | ||
Total Regulatory Liabilities | 10,728 | 8,910 |
Deferral of effects on net margin- Hawk Road Energy Facility | Hawk Road | ||
Regulatory Assets and Liabilities | ||
Total Regulatory Liabilities | 20,622 | 20,775 |
Major maintenance reserve | ||
Regulatory Assets and Liabilities | ||
Total Regulatory Liabilities | 24,872 | 22,422 |
Amortization on capital leases | ||
Regulatory Assets and Liabilities | ||
Total Regulatory Liabilities | 25,647 | 26,502 |
Deferred debt service adder | ||
Regulatory Assets and Liabilities | ||
Total Regulatory Liabilities | 78,767 | 76,334 |
Asset retirement obligations. | ||
Regulatory Assets and Liabilities | ||
Total Regulatory Liabilities | 12,917 | 8,316 |
Other regulatory liabilities | ||
Regulatory Assets and Liabilities | ||
Total Regulatory Liabilities | $ 3,798 | 3,708 |
Other regulatory liabilities | Maximum | ||
Regulatory Assets and Liabilities | ||
Amortization Period | 11 years | |
Premium and loss on reacquired debt | ||
Regulatory Assets and Liabilities | ||
Total Regulatory Assets | $ 60,147 | 61,916 |
Premium and loss on reacquired debt | Maximum | ||
Regulatory Assets and Liabilities | ||
Amortization period | 28 years | |
Amortization on capital leases | ||
Regulatory Assets and Liabilities | ||
Total Regulatory Assets | $ 30,759 | 30,253 |
Outage costs | ||
Regulatory Assets and Liabilities | ||
Total Regulatory Assets | 56,327 | 42,027 |
Interest rate swap termination fees | ||
Regulatory Assets and Liabilities | ||
Total Regulatory Assets | 4,909 | 5,355 |
Depreciation expense | ||
Regulatory Assets and Liabilities | ||
Total Regulatory Assets | $ 45,159 | 45,514 |
Depreciation expense | Plant Vogtle | ||
Regulatory Assets and Liabilities | ||
Operating license expected extension period for Plant Vogtle | 20 years | |
Operating license period | 40 years | |
Deferred charges related to Vogtle Units No. 3 and No. 4 training costs | Vogtle Units Number 3 And Number 4 | ||
Regulatory Assets and Liabilities | ||
Total Regulatory Assets | $ 38,899 | 37,646 |
Interest rate options cost | ||
Regulatory Assets and Liabilities | ||
Total Regulatory Assets | 103,713 | 102,554 |
Deferral of effects on net margin - Smith Energy Facility | Smith | ||
Regulatory Assets and Liabilities | ||
Total Regulatory Assets | 176,857 | 178,343 |
Other regulatory assets | ||
Regulatory Assets and Liabilities | ||
Total Regulatory Assets | $ 37,724 | $ 26,646 |
Other regulatory assets | Maximum | ||
Regulatory Assets and Liabilities | ||
Amortization period | 34 years | |
Coal-fired maintenance outage costs | ||
Regulatory Assets and Liabilities | ||
Amortization period | 24 months | |
Nuclear refueling outage costs | Minimum | ||
Regulatory Assets and Liabilities | ||
Amortization period | 18 months | |
Nuclear refueling outage costs | Maximum | ||
Regulatory Assets and Liabilities | ||
Amortization period | 24 months |
Debt (Details)
Debt (Details) | Apr. 28, 2016USD ($) | Apr. 21, 2016USD ($) | Mar. 31, 2016USD ($) | Feb. 20, 2014USD ($)item |
Debt | ||||
Repayments of commercial paper | $ 129,737,500 | |||
Facility | ||||
Debt | ||||
Number of future advance promissory notes | item | 2 | |||
Aggregate borrowings including capitalized interest | $ 1,191,234,000 | |||
Facility | Maximum | ||||
Debt | ||||
Aggregate borrowings | $ 3,057,069,461 | |||
Capitalized interest | $ 335,471,604 | |||
Rural Utilities Service Guaranteed Loans | ||||
Debt | ||||
Additional advances | $ 74,435,000 | $ 7,998,000 | ||
First Mortgage Bonds Series 2016A | ||||
Debt | ||||
Principal amount | $ 250,000,000 | |||
Interest rate (as a percent) | 4.25% |