| Other | 3 Months Ended |
| Mar. 31, 2014 |
| Other [Abstract] | ' |
| Other | ' |
| 5. Other |
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| Margin Stabilization |
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| Margin Stabilization allows us to review our actual demand-related costs of service and demand revenue and adjust revenues from our member distribution cooperatives to meet our financial coverage requirements and accumulate additional equity as approved by our board of directors. Our formula rate allows us to recover and refund amounts utilizing Margin Stabilization. Pursuant to FERC’s acceptance of the revisions to the formula rate as issued in FERC’s December 2, 2013 order (see “FERC Proceeding Related to Formula Rate” below), effective January 1, 2014: |
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| · | | At year end, if the actual net margin attributable to ODEC, excluding any budgeted additional equity contributions, equals more than 20% of our actual total interest charges, our board of directors may approve that, utilizing Margin Stabilization, revenues will be reduced by the amount of such excess margins, or that such excess margins will be retained as an additional equity contribution. For year-to-date interim reporting, if the actual net margin attributable to ODEC, excluding any budgeted additional equity contributions, equals more than 20% of our actual total interest charges, utilizing Margin Stabilization, revenues will be reduced by the amount of such excess margins. |
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| · | | At year end and for year-to-date interim reporting, if the actual net margin attributable to ODEC, excluding any budgeted additional equity contributions, equals more than 10% but less than 20% of our actual total interest charges, no adjustment is required. |
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| · | | At year end and for year-to-date interim reporting, if the actual net margin attributable to ODEC, excluding any budgeted additional equity contributions, equals less than 10% of our actual total interest charges, utilizing Margin Stabilization, revenues will be increased to produce a net margin attributable to ODEC, excluding any budgeted additional equity contributions, equal to 10% of our actual total interest charges. |
| As of March 31, 2014 and 2013, we recorded a reduction in operating revenues of $7.0 million and $14.8 million, respectively, utilizing Margin Stabilization, to produce a net margin equal to 20% of our actual total interest charges. |
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| First Quarter 2014 Results and the Impact on Deferred Energy |
| Deferred energy expense represents the difference between energy revenues, which are based upon energy rates approved by our board, and energy expenses, which are based upon actual energy costs incurred. In the three months ended March 31, 2014, we under-collected energy costs from our member distribution cooperatives by $93.4 million, which was recorded as deferred energy expense. As a result, our deferred energy balance changed from an over-collection of $37.2 million at December 31, 2013, to an under-collection of $56.2 million at March 31, 2014. In the first quarter of 2014, the entire mid-Atlantic region experienced extremely cold weather, which increased our energy sales in MWh to our member distribution cooperatives 10.2% over the expected requirements, and which had a significant effect on our fuel and purchased power costs. As a result, our average energy cost, net of excess energy sales, was $66.85 per MWh as compared to our average energy rate of $42.22 per MWh. The significant increase in our average energy cost was primarily driven by the $84.1 million increase in fuel expense and the $40.7 million increase in purchased power expense. The increase in fuel expense was primarily impacted by the 642.3% increase in the dispatch of our combustion turbine facilities as well as the 278.4% increase in the average cost of fuel for our combustion turbine facilities. The increase in purchased power expense was driven by the 20.6% increase in the average cost of purchased energy and the 8.3% increase in the volume of purchased energy. To address the under-collection of energy costs, we increased our total energy rate 11.8% effective April 1, 2014. |
| Wildcat Point Generation Facility |
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| On April 23, 2013, we announced our intention to seek approval to develop and construct a 1,000 MW natural gas-fueled generation facility, named Wildcat Point, in Cecil County, Maryland. The development, construction, and operation of Wildcat Point are subject to obtainment of necessary governmental and regulatory approvals and our board’s approval of an EPC contractor. On May 20, 2013, we applied to the MPSC for a CPCN. On March 24, 2014, the MPSC issued a Proposed Order granting the CPCN; the Proposed Order became a Final Order on April 8, 2014. We continue to pursue other necessary permits and contracts related to the development and construction of the facility. We anticipate construction will begin in late 2014, and the facility will become operational in mid-2017. |
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| Wildcat Point will consist of two combustion turbines, two heat recovery steam generators and one steam turbine generator. Mitsubishi will supply the combustion turbines and Alstom will supply the heat recovery steam generators and the steam turbine generator. In the fourth quarter of 2013, we issued an RFP for potential EPC contractors to construct Wildcat Point. We are currently evaluating the responses to the RFP and anticipate recommending an EPC contractor to our board of directors for approval mid-2014. For the three months ended March 31, 2014 and 2013, we expensed $1.8 million and $1.0 million, respectively, of preconstruction costs related to Wildcat Point, which are recorded in administrative and general expense. Through March 31, 2014, we capitalized progress payments for major equipment, emission reduction credits, and land rights totaling $11.8 million, which are recorded in construction work in progress. |
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| FERC Proceeding Related to Formula Rate |
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| On September 30, 2013, we filed with FERC to revise our cost-based formula rate to more closely align our cost recovery from our member distribution cooperatives with the methodologies used by PJM to allocate costs to us. On November 8, 2013, Bear Island, a customer of REC, filed a motion to intervene, protest, and request for hearing. On December 2, 2013, FERC issued its order accepting the proposed revisions for filing to become effective January 1, 2014, subject to refund, and establishing hearing and settlement procedures. We are currently in settlement discussions with Bear Island, the results of which cannot currently be determined. |
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| Recovery of Costs from PJM |
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| We are seeking recovery from PJM of unreimbursed costs totaling approximately $19.0 million which were incurred during the first quarter of 2014 related to the dispatch of our combustion turbine generating facilities. The results of our efforts cannot currently be determined. |
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| Short-term Borrowings |
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| We currently maintain a $500.0 million, five-year revolving credit facility to cover our short-term and medium-term funding needs. Commitments under this syndicated credit agreement extend until March 5, 2019, unless earlier terminated in accordance with the agreement. At March 31, 2014 and December 31, 2013, we did not have any borrowings outstanding under this facility. On May 9, 2014, we had a letter of credit related to Wildcat Point in the amount of $51.7 million issued under this facility. |
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