Xcel Energy 2013 Annual Report Download - page 137

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119
The following table presents 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, 2012:
Dec. 31, 2012
Fair Value Fair Value
Total Counterparty
Netting (b)
(Thousands of Dollars) Level 1 Level 2 Level 3 Total
Current derivative assets
Derivatives designated as cash flow hedges:
Vehicle fuel and other commodity . . . . . . . . . . . . $ — $ 95 $ — $ 95 $ — $ 95
Other derivative instruments:
Commodity trading. . . . . . . . . . . . . . . . . . . . . . . . — 26,303 692 26,995 (6,675) 20,320
Electric commodity. . . . . . . . . . . . . . . . . . . . . . . . — — 16,724 16,724 (843) 15,881
Natural gas commodity. . . . . . . . . . . . . . . . . . . . . — 7 — 7 (7) —
Total current derivative assets. . . . . . . . . . . . . $ — $ 26,405 $ 17,416 $ 43,821 $ (7,525) 36,296
PPAs (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,717
Current derivative instruments . . . . . . . . . . . . $ 69,013
Noncurrent derivative assets
Derivatives designated as cash flow hedges:
Vehicle fuel and other commodity . . . . . . . . . . . . $ — $ 86 $ — $ 86 $ (47) $ 39
Other derivative instruments:
Commodity trading. . . . . . . . . . . . . . . . . . . . . . . . — 41,282 77 41,359 (4,162) 37,197
Total noncurrent derivative assets. . . . . . . . . . $ — $ 41,368 $ 77 $ 41,445 $ (4,209) 37,236
PPAs (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89,061
Noncurrent derivative instruments . . . . . . . . . $ 126,297
Dec. 31, 2012
Fair Value Fair Value
Total Counterparty
Netting (b)
(Thousands of Dollars) Level 1 Level 2 Level 3 Total
Current derivative liabilities
Other derivative instruments:
Commodity trading. . . . . . . . . . . . . . . . . . . . . . . . $ — $ 18,622 $ 1 $ 18,623 $ (9,112) $ 9,511
Electric commodity. . . . . . . . . . . . . . . . . . . . . . . . — — 843 843 (843) —
Natural gas commodity. . . . . . . . . . . . . . . . . . . . . — 98 — 98 (7) 91
Total current derivative liabilities . . . . . . . . . . $ — $ 18,720 $ 844 $ 19,564 $ (9,962) 9,602
PPAs (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,880
Current derivative instruments . . . . . . . . . . . . $ 32,482
Noncurrent derivative liabilities
Other derivative instruments:
Commodity trading. . . . . . . . . . . . . . . . . . . . . . . . $ — $ 21,417 $ — $ 21,417 $ (4,210) $ 17,207
Total noncurrent derivative liabilities . . . . . . . $ — $ 21,417 $ — $ 21,417 $ (4,210) 17,207
PPAs (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 225,659
Noncurrent derivative instruments . . . . . . . . . $ 242,866
(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.
(b) Xcel Energy nets derivative instruments and related collateral in its consolidated balance sheet when supported by a legally enforceable master netting agreement,
and all derivative instruments and related collateral amounts were subject to master netting agreements at Dec. 31, 2012. At Dec. 31, 2012, derivative assets and
liabilities include obligations to return cash collateral of $0.6 million and rights to reclaim cash collateral of $3.0 million. The counterparty netting amounts
presented exclude settlement receivables and payables and non-derivative amounts that may be subject to the same master netting agreements.