National Grid 2008 Annual Report Download - page 318

BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 6549
Name: NATIONAL GRID
Date: 17-JUN-2008 03:10:51.35Operator: BNY99999TPhone: [phone]Site: BOWNE OF NEW YORK
Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 112
Description: EXH 2(B).6.1
0/3716.00.00.00Y59930BNY
[E/O] EDGAR 2 *Y59930/716/3*
BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 6549
Name: NATIONAL GRID
Date: 17-JUN-2008 03:10:51.35Operator: BNY99999TPhone: [phone]Site: BOWNE OF NEW YORK
Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 112 Description: EXH 2(B).6.1
0/3716.00.00.00Y59930BNY
[E/O] EDGAR 2 *Y59930/716/3*
the remainin
g
term of the swaps as nominal ener
g
y quantities are settled and they are adjusted as periodic reassessments are
made of energy price forecasts.
At March 31, 2007, Nia
g
ara Mohawk projects that it will make the followin
g
payments in connection with its swap contracts for
the fiscal years 2008 through 2009 and thereafter, subject to changes in market prices and indexing provisions:
Nia
g
ara Mohawk uses NYMEX
g
as futures to hed
g
e the
g
as commodity component of its indexed swap contracts. These
instruments, as used, do not qualify for hed
g
e accountin
g
status under SFAS No. 133. Cash flow hed
g
es that qualify under
SFAS No. 133 are as follows: NYMEX
g
as futures for the purchases of natural
g
as and NYMEX electric swap contracts
hedging the purchases of electricity.
The followin
g
table represents the open positions at March 31, 2007 and 2006 and the results on operations of these
instruments for the year ended March 31, 2007 and 2006.
F-27
Projected
Year Ended March 31, Pa
y
ment
(In thousand
s
of dollars)
2008 $ 221,540
2009 46,500
Thereafter —
$ 268,040
Balances as of March 31, 2006
Accumulated Gain Reclass
Accumulated Deferred to
Re
g
ulator
y
OCI
**
, net of Income Tax Commodit
y
Derivative Instrument Asset* Deferral tax on OCI
**
Costs
(In thousands of dollars
)
Qualified for Hedge Accounting
NYMEX futures -
g
as su
pp
l
y
$
(
5,358.8
)
$
—
$ 4,943.0 $
(
3,296.0
)
$ 35,956.6
NYMEX electric swaps - electric supply $ 317.5 $ — $ (190.5) $ 127.0 $ 3,260.2
No
n
-
q
ualified for Hed
g
e Accountin
g
NYMEX futures - IPP swaps/non-MRA IPP $ (27,195.9) $ 31,718.1 $ — $ $ 59,464.9
Notes:
* Differences between asset and re
g
ulatory or other comprehensive income deferral represent contracts settled for the
followin
g
month.
** Other comprehensive income (OCI)
Balances as of March 31, 2007
Accumulated Loss Reclass
Accumulated Deferred to
Re
g
ulator
y
OCI**, net of Income Tax Commodit
y
Derivative Instrument Asset* Deferral tax on OCI** Costs
(In thousands of dollars
)
Qualified for Hed
g
e Accountin
g
NYMEX futures - gas supply $ 2,533.7 $ — $ 214.9 $ (143.3) $ (36,722.9)
NYMEX electric swa
p
s - electric su
pp
l
y
$ 783.9 $
—
$30.1 $
(
20.1
)
$
(
4,644.7
)