Xcel Energy 2014 Annual Report Download - page 137

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119
Recurring Fair Value Measurements — 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, 2014:
Dec. 31, 2014
Fair Value Fair Value
Total Counterparty
Netting (b)
(Thousands of Dollars) Level 1 Level 2 Level 3 Total
Current derivative assets
Other derivative instruments:
Commodity trading. . . . . . . . . . . . . . . . . . . . . . . . . . $ — $ 14,326 $ 4,732 $ 19,058 $ (3,240) $ 15,818
Electric commodity. . . . . . . . . . . . . . . . . . . . . . . . . . — — 62,825 62,825 (11,402) 51,423
Natural gas commodity. . . . . . . . . . . . . . . . . . . . . . . — 381 — 381 (22) 359
Total current derivative assets. . . . . . . . . . . . . . . $ — $ 14,707 $ 67,557 $ 82,264 $ (14,664) 67,600
PPAs (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,123
Current derivative instruments . . . . . . . . . . . . . . $ 85,723
Noncurrent derivative assets
Other derivative instruments:
Commodity trading. . . . . . . . . . . . . . . . . . . . . . . . . . $ — $ 17,617 $ — $ 17,617 $ (4,151) $ 13,466
Total noncurrent derivative assets. . . . . . . . . . . . $ — $ 17,617 $ — $ 17,617 $ (4,151) 13,466
PPAs (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,309
Noncurrent derivative instruments . . . . . . . . . . . $ 53,775
Dec. 31, 2014
Fair Value Fair Value
Total Counterparty
Netting (b)
(Thousands of Dollars) Level 1 Level 2 Level 3 Total
Current derivative liabilities
Derivatives designated as cash flow hedges:
Vehicle fuel and other commodity . . . . . . . . . . . . . . $ — $ 118 $ — $ 118 $ — $ 118
Other derivative instruments:
Commodity trading. . . . . . . . . . . . . . . . . . . . . . . . . . — 7,974 — 7,974 (7,974) —
Electric commodity. . . . . . . . . . . . . . . . . . . . . . . . . . — — 11,402 11,402 (11,402) —
Natural gas commodity. . . . . . . . . . . . . . . . . . . . . . . — 548 — 548 (21) 527
Total current derivative liabilities . . . . . . . . . . . . $ — $ 8,640 $ 11,402 $ 20,042 $ (19,397) 645
PPAs (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,987
Current derivative instruments . . . . . . . . . . . . . . $ 21,632
Noncurrent derivative liabilities
Derivatives designated as cash flow hedges:
Vehicle fuel and other commodity . . . . . . . . . . . . . . $ — $ 102 $ — $ 102 $ — $ 102
Other derivative instruments:
Commodity trading. . . . . . . . . . . . . . . . . . . . . . . . . . — 6,890 — 6,890 (6,033) 857
Natural gas commodity. . . . . . . . . . . . . . . . . . . . . . . — 35 — 35 — 35
Total noncurrent derivative liabilities . . . . . . . . . $ — $ 7,027 $ — $ 7,027 $ (6,033) 994
PPAs (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182,942
Noncurrent derivative instruments . . . . . . . . . . . $ 183,936
(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, 2014. At Dec. 31, 2014, derivative assets and
liabilities include no obligations to return cash collateral and rights to reclaim cash collateral of $6.6 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.