Xcel Energy 2011 Annual Report Download - page 124

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114
At Dec. 31, 2011, Xcel Energy had various vehicle fuel related contracts designated as cash flow hedges extending through
December 2014. Xcel Energy also enters into derivative instruments that mitigate commodity price risk on behalf of electric and
natural gas customers but are not designated as qualifying hedging transactions. Changes in the fair value of non-trading
commodity derivative instruments are recorded in OCI or deferred as a regulatory asset or liability. The classification as a
regulatory asset or liability is based on commission approved regulatory recovery mechanisms. Xcel Energy recorded immaterial
amounts to income related to the ineffectiveness of cash flow hedges for the years ended Dec. 31, 2011 and 2010.
At Dec. 31, 2011, accumulated OCI related to commodity derivative cash flow hedges included $0.2 million of net gains expected
to be reclassified into earnings during the next 12 months as the hedged transactions occur.
Additionally, Xcel Energy enters into commodity derivative instruments for trading purposes not directly related to commodity
price risks associated with serving its electric and natural gas customers. Changes in the fair value of these commodity derivatives
are recorded in electric operating revenues, net of amounts credited to customers under margin-sharing mechanisms.
The following table details the gross notional amounts of commodity forwards, options and FTRs at Dec. 31, 2011 and Dec. 31,
2010:
(Amounts in Thousands) (a)(b) Dec. 31, 2011 Dec. 31, 2010
MWh of electricity ................................................................
.....
38,822 46,794
MMBtu of natural gas................................................................
...
40,736 75,806
Gallons of vehicle fuel ................................................................
..
600 800
(a) Amounts are not reflective of net positions in the underlying commodities.
(b) Notional amounts for options are included on a gross basis, but are weighted for the probability of exercise.
Financial Impact of Qualifying Cash Flow Hedges — The impact of qualifying interest rate and vehicle fuel cash flow hedges
on Xcel Energy’s accumulated OCI, included in the consolidated statements of common stockholders’ equity and comprehensive
income, is detailed in the following table:
(Thousands of Dollars) 2011 2010 2009
Accumulated other comprehensive loss related to cash flow hedges at Jan. 1
...........
$ (8,094) $
(6,435) $
(13,113
)
After-tax net unrealized losses related to derivatives accounted for as hedges
..........
(38,292) (4,289) (71
0
)
After-tax net realized losses on derivative transactions reclassified into earnings
.......
648 2,630
7,388
Accumulated other comprehensive loss related to cash flow hedges at Dec. 31
.........
$ (45,738) $
(8,094) $
(6,435
)
Xcel Energy had no derivative instruments designated as fair value hedges during the years ended Dec. 31, 2011 and Dec. 31,
2010.
The following tables detail the impact of derivative activity during the years ended Dec. 31, 2011 and Dec. 31, 2010, on OCI,
regulatory assets and liabilities, and income:
Dec. 31, 2011
Fair Value
Changes Recognized
During the Period in:
Pre-Tax Amounts
Reclassified into Income
During the Period from:
(Thousands of Dollars)
Accumulated
Other
Comprehensive
Loss
Regulatory
(Assets) and
Liabilities
Accumulated
Other
Comprehensive
Loss
Regulatory
Assets and
(Liabilities)
Pre-Tax Gains
(Losses)
Recognized
During the Period
in Income
Derivatives designated as cash flow
hedges ...........................
Interest rate .......................
$
(63,573) $
- $
1,424 (a)
$
-
$
-
Vehicle fuel and other commodity . .
195 - (178)(e)
-
-
Total ...........................
$
(63,378) $
- $
1,246
$
-
$
-
Other derivative instruments
Trading commodity................
$
- $
- $
-
$
-
$
6,418
(b)
Electric commodity ................
- 49,818 -
(40,492
)(c)
-
Natural gas commodity ............
- (111,574) -
91,743
(d)
(382
)(b)
Total ...........................
$
- $
(61,756) $
-
$
51,251
$
6,036