Xcel Energy 2012 Annual Report Download - page 130

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120
The following tables present for each of the fair value hierarchy levels, Xcel Energy’s derivative assets and liabilities measured at
fair value on a recurring basis at Dec. 31, 2011:
Dec. 31, 2011
Fair Value
Fair Value
Counterparty
(Thousands of Dollars)
Level 1
Level 2
Level 3
Total
Netting (b)
Total
Current derivative assets
Derivatives designated as cash flow
hedges:
Vehicle fuel and other commodity
$
-
$
169
$
-
$
169
$
(76)
$
93
Other derivative instruments:
Commodity trading
..............
-
32,682
-
32,682
(13,391)
19,291
Electric commodity
..............
-
-
13,333
13,333
(1,471)
11,862
Total current derivative assets
..
$
-
$
32,851
$
13,333
$
46,184
$
(14,938)
31,246
PPAs (a)
...........................
33,094
Current derivative instruments
....
$
64,340
Dec. 31, 2011
Fair Value
Fair Value
Counterparty
(Thousands of Dollars)
Level 1
Level 2
Level 3
Total
Netting (b)
Total
Noncurrent derivative assets
Derivatives designated as cash flow
hedges:
Vehicle fuel and other commodity
$
-
$
107
$
-
$
107
$
(59)
$
48
Other derivative instruments:
Commodity trading
..............
-
36,599
-
36,599
(5,540)
31,059
Total noncurrent derivative
assets
.......................
$
-
$
36,706
$
-
$
36,706
$
(5,599)
31,107
PPAs (a)
...........................
121,780
Noncurrent derivative instruments
$
152,887
Current derivative liabilities
Derivatives designated as cash flow
hedges:
Interest rate
.....................
$
-
$
57,749
$
-
$
57,749
$
-
$
57,749
Other derivative instruments:
Commodity trading
..............
-
27,891
-
27,891
(14,417)
13,474
Electric commodity
..............
-
698
916
1,614
(1,471)
143
Natural gas commodity
..........
418
70,119
-
70,537
(7,486)
63,051
Total current derivative
liabilities
...................
$
418
$
156,457
$
916
$
157,791
$
(23,374)
134,417
PPAs (a)
..........................
22,997
Current derivative instruments
....
$
157,414
Noncurrent derivative liabilities
Other derivative instruments:
Commodity trading
..............
$
-
$
20,966
$
-
$
20,966
$
(5,599)
$
15,367
Total noncurrent derivative
liabilities
...................
$
-
$
20,966
$
-
$
20,966
$
(5,599)
15,367
PPAs (a)
...........................
248,539
Noncurrent derivative instruments
$
263,906
(a) In 2003, as a result of implementing new guidance on the normal purchase exception for derivative accounting, Xcel Energy began recording several long-
term PPAs at fair value due to accounting requirements related to underlying price adjustments. As these purchases are recovered through normal regulatory
recovery mechanisms in the respective jurisdictions, the changes in fair value for these contracts were offset by regulatory assets and liabilities. During 2006,
Xcel Energy qualified these contracts under the normal purchase exception. Based on this qualification, the contracts are no longer adjusted to fair value and
the previous carrying value of these contracts will be amortized over the remaining contract lives along with the offsetting regulatory assets and liabilities.