APS 2015 Annual Report Download - page 75

Table of Contents
The table below shows the impact that hypothetical price movements of 10% would have on the market value of our risk
management assets and liabilities included on Pinnacle West’s Consolidated Balance Sheets at December 31, 2015 and 2014 (dollars in
millions):
December 31, 2015
Gain (Loss)
December 31, 2014
Gain (Loss)
Price Up 10%
Price Down 10%
Price Up 10%
Price Down 10%
Mark-to-market changes reported in:
Regulatory asset (liability) or OCI (a)
Electricity $ 2
$ (2)
$ 3
$ (3)
Natural gas 35
(35)
29
(29)
Total $ 37
$ (37)
$ 32
$ (32)
(a) These contracts are economic hedges of our forecasted purchases of natural gas and electricity. The impact of these
hypothetical price movements would substantially offset the impact that these same price movements would have on the
physical exposures being hedged. To the extent the amounts are eligible for inclusion in the PSA, the amounts are recorded
as either a regulatory asset or liability.
Credit Risk
We are exposed to losses in the event of non-performance or non-payment by counterparties. See Note 16 for a discussion of
our credit valuation adjustment policy.
ITEM 7A. QUANTITATIVE AND QUALITATIVE
DISCLOSURES ABOUT MARKET RISK
See “Market and Credit Risks” in Item 7 above for a discussion of quantitative and qualitative disclosures about market risks.
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