APS 2013 Annual Report Download - page 149
Download and view the complete annual report
Please find page 149 of the 2013 APS annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139 -
140 -
141 -
142 -
143 -
144 -
145 -
146 -
147 -
148 -
149 -
150 -
151 -
152 -
153 -
154 -
155 -
156 -
157 -
158 -
159 -
160
-
161
-
162
-
163
-
164
-
165
-
166
-
167
-
168
-
169
-
170
-
171
-
172
-
173
-
174
-
175
-
176
-
177
-
178
-
179
-
180
-
181
-
182
-
183
-
184
-
185
-
186
-
187
-
188
-
189
-
190
-
191
-
192
-
193
-
194
-
195
-
196
-
197
-
198
-
199
-
200
-
201
-
202
-
203
-
204
-
205
-
206
-
207
-
208
-
209
-
210
-
211
-
212
-
213
-
214
-
215
-
216
-
217
-
218
-
219
-
220
-
221
-
222
-
223
-
224
-
225
-
226
-
227
-
228
-
229
-
230
-
231
-
232
-
233
-
234
-
235
-
236
-
237
-
238
-
239
-
240
-
241
-
242
-
243
-
244
-
245
-
246
-
247
-
248
-
249
-
250
-
251
-
252
-
253
-
254
-
255
-
256
-
257
-
258
-
259
-
260
-
261
-
262
-
263
-
264
-
265
-
266
 |
 |
Table of Contents
PINNACLE WEST CAPITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2013, we had the following outstanding gross notional volume of derivatives, which represent both purchases and sales (does
not reflect net position):
Commodity Quantity
Power 5,765 GWh
Gas 108 Bcfs (a)
(a) “Bcf” is Billion Cubic Feet.
Gains and Losses from Derivative Instruments
The following table provides information about gains and losses from derivative instruments in designated cash flow accounting hedging
relationships during the years ended December 31, 2013, 2012 and 2011 (dollars in thousands):
Year Ended
Financial Statement December 31,
Commodity Contracts Location 2013 2012 2011
Loss Recognized in OCI on Derivative Instruments
(Effective Portion)
OCI — derivative
instruments $(353) $ (37,663) $ (94,660)
Loss Reclassified from Accumulated OCI into Income
(Effective Portion Realized) (a)
Fuel and purchased
power (b) (44,219) (99,007) (117,189)
Gain (Loss) Recognized in Income (Ineffective Portion and
Amount Excluded from Effectiveness Testing)
Fuel and purchased
power (b) —117 (211)
(a) During the years ended December 31, 2013, 2012, and 2011, we had zero, $1.8 million, and zero losses reclassified from accumulated
OCI to earnings related to discontinued cash flow hedges.
(b) Amounts are before the effect of PSA deferrals.
During the next twelve months, we estimate that a net loss of $21 million before income taxes will be reclassified from accumulated OCI as an offset
to the effect of market price changes for the related hedged transactions. In accordance with the PSA, substantially all of these amounts will be recorded as
either a regulatory asset or liability and have no immediate effect on earnings.
145