Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 28, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Current Fiscal Year End Date | --12-31 | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-31303 | |
Entity Registrant Name | Black Hills Corporation | |
Entity Incorporation, State or Country Code | SD | |
Entity Tax Identification Number | 46-0458824 | |
Entity Address, Address Line One | 7001 Mount Rushmore Road | |
Entity Address, City or Town | Rapid City | |
Entity Address, State or Province | SD | |
Entity Address, Postal Zip Code | 57702 | |
City Area Code | 605 | |
Local Phone Number | 721-1700 | |
Title of 12(b) Security | Common stock of $1.00 par value | |
Trading Symbol | BKH | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 66,660,004 | |
Entity Central Index Key | 0001130464 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue: | ||
Revenue | $ 921,159 | $ 823,570 |
Operating expenses: | ||
Fuel, purchased power and cost of natural gas sold | 526,267 | 436,926 |
Operations and maintenance | 140,988 | 136,132 |
Depreciation, depletion and amortization | 61,643 | 60,463 |
Taxes - property and production | 17,378 | 16,696 |
Total operating expenses | 746,276 | 650,217 |
Operating income | 174,883 | 173,353 |
Other income (expense): | ||
Interest expense incurred net of amounts capitalized (including amortization of debt issuance costs, premiums and discounts) | (44,065) | (38,821) |
Interest income | 561 | 276 |
Other income, net | 674 | 704 |
Total other income (expense) | (42,830) | (37,841) |
Income before income taxes | 132,053 | 135,512 |
Income tax (expense) | (14,673) | (14,488) |
Net income | 117,380 | 121,024 |
Net income attributable to non-controlling interest | (3,296) | (3,498) |
Net income available for common stock | $ 114,084 | $ 117,526 |
Earnings per share of common stock: | ||
Earnings per share, Basic (usd per share) | $ 1.73 | $ 1.82 |
Earnings per share, Diluted (usd per share) | $ 1.73 | $ 1.82 |
Weighted average common shares outstanding: | ||
Basic (in shares) | 66,036 | 64,565 |
Diluted (in shares) | 66,132 | 64,721 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Net income | $ 117,380 | $ 121,024 |
Other comprehensive income (loss), net of tax: | ||
Reclassification adjustments of benefit plan liability - prior service cost (net of tax of $0 and $6, respectively) | 0 | (18) |
Reclassification adjustments of benefit plan liability - net loss (net of tax of $(16) and $(45), respectively) | 28 | 143 |
Net unrealized gains (losses) on commodity derivatives (net of tax of $268 and $(340), respectively) | (855) | 1,047 |
Other comprehensive income (loss), net of tax | 1,220 | 6 |
Comprehensive income | 118,600 | 121,030 |
Less: comprehensive income attributable to non-controlling interest | (3,296) | (3,498) |
Comprehensive income available for common stock | 115,304 | 117,532 |
Interest rate swaps | ||
Other comprehensive income (loss), net of tax: | ||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, after Tax | 563 | 536 |
Commodity derivatives | ||
Other comprehensive income (loss), net of tax: | ||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, after Tax | $ 1,484 | $ (1,702) |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
(Tax) benefit on reclassification adjustment of benefit plan liability - net loss | $ (16) | $ (45) |
(Tax) benefit on reclassification adjustment of benefit plan liability - prior service cost | 0 | 6 |
Interest Rate Swap | ||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification,Tax (Benefit) | (150) | (177) |
Commodity Contract | ||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification,Tax (Benefit) | (466) | 552 |
(Tax) benefit on net unrealized gains (losses) on commodity derivatives | $ 268 | $ (340) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 39,365 | $ 21,430 |
Restricted cash and equivalents | 5,765 | 5,555 |
Accounts receivable, net | 477,089 | 508,192 |
Materials, supplies and fuel | 129,960 | 207,421 |
Derivative assets, current | 153 | 582 |
Income tax receivable, net | 17,772 | 17,637 |
Regulatory assets, current | 214,838 | 260,312 |
Other current assets | 33,376 | 50,579 |
Total current assets | 918,318 | 1,071,708 |
Property, plant and equipment | 8,466,173 | 8,374,790 |
Less accumulated depreciation and depletion | (1,628,772) | (1,576,842) |
Total property, plant and equipment, net | 6,837,401 | 6,797,948 |
Other assets: | ||
Goodwill | 1,299,454 | 1,299,454 |
Intangible assets, net | 9,296 | 9,589 |
Regulatory assets, non-current | 347,031 | 392,669 |
Other assets, non-current | 48,636 | 46,862 |
Total other assets, non-current | 1,704,417 | 1,748,574 |
TOTAL ASSETS | 9,460,136 | 9,618,230 |
Current liabilities: | ||
Accounts payable | 173,221 | 310,020 |
Accrued liabilities | 228,861 | 243,457 |
Derivative liabilities, current | 1,729 | 6,600 |
Regulatory liabilities, current | 110,100 | 46,013 |
Notes payable | 0 | 535,600 |
Current maturities of long-term debt | 525,000 | 525,000 |
Total current liabilities | 1,038,911 | 1,666,690 |
Long-term debt, net of current maturities | 3,954,409 | 3,607,340 |
Deferred credits and other liabilities: | ||
Deferred income tax liabilities, net | 535,852 | 508,941 |
Regulatory liabilities, non-current | 466,961 | 472,560 |
Benefit plan liabilities | 117,765 | 116,742 |
Other deferred credits and other liabilities | 154,507 | 156,062 |
Total deferred credits and other liabilities | 1,275,085 | 1,254,305 |
Commitments, contingencies and guarantees (Note 3) | ||
Equity: | ||
Common stock $1 par value; 100,000,000 shares authorized; issued 66,670,709 and 66,140,396 shares, respectively | 66,671 | 66,140 |
Additional paid-in capital | 1,911,476 | 1,882,653 |
Retained earnings | 1,136,844 | 1,064,122 |
Treasury stock, at cost - 41,114 and 36,726 shares, respectively | (2,697) | (2,435) |
Accumulated other comprehensive income (loss) | (14,347) | (15,567) |
Total stockholders’ equity | 3,097,947 | 2,994,913 |
Non-controlling interest | 93,784 | 94,982 |
Total equity | 3,191,731 | 3,089,895 |
TOTAL LIABILITIES AND TOTAL EQUITY | $ 9,460,136 | $ 9,618,230 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (usd per share) | $ 1 | $ 1 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares, issued | 66,670,709 | 66,140,396 |
Treasury stock, shares | 41,114 | 36,726 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Operating activities: | ||
Net income | $ 117,380 | $ 121,024 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, depletion and amortization | 61,643 | 60,463 |
Deferred financing cost amortization | 2,410 | 2,475 |
Stock compensation | 1,784 | 3,638 |
Deferred income taxes | 14,858 | 14,462 |
Employee benefit plans | 3,021 | 1,173 |
Other adjustments, net | (2,816) | 5,337 |
Change in certain operating assets and liabilities: | ||
Materials, supplies and fuel | 76,122 | 34,995 |
Accounts receivable and other current assets | 28,729 | (71,241) |
Accounts payable and other current liabilities | (127,233) | (8,422) |
Regulatory assets | 154,666 | 98,528 |
Other operating activities, net | (1,819) | 1,689 |
Net cash provided by operating activities | 328,745 | 264,121 |
Investing activities: | ||
Property, plant and equipment additions | (119,105) | (136,779) |
Other investing activities | 17,600 | (1,065) |
Net cash (used in) investing activities | (101,505) | (137,844) |
Financing activities: | ||
Dividends paid on common stock | (41,362) | (38,533) |
Common stock issued | 27,383 | 3,791 |
Net borrowings (payments) of Revolving Credit Facility and CP Program | (535,600) | (78,700) |
Long-term debt - issuance | 350,000 | 0 |
Distributions to non-controlling interests | (4,494) | (4,420) |
Other financing activities | (5,022) | (878) |
Net cash (used in) financing activities | (209,095) | (118,740) |
Net change in cash, restricted cash and cash equivalents | 18,145 | 7,537 |
Cash, restricted cash and cash equivalents beginning of period | 26,985 | 13,810 |
Cash, restricted cash and cash equivalents end of period | 45,130 | 21,347 |
Supplemental cash flow information: | ||
Interest (net of amounts capitalized) | (27,569) | (23,605) |
Income taxes | 49 | 0 |
Accrued property, plant and equipment purchases at March 31, | $ 42,102 | $ 39,559 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest |
Beginning balance (in shares) at Dec. 31, 2021 | 64,793,095 | 54,078 | |||||
Beginning balance at Dec. 31, 2021 | $ 2,887,123 | $ 64,793 | $ (3,509) | $ 1,783,436 | $ 962,458 | $ (20,084) | $ 100,029 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 121,024 | 117,526 | 3,498 | ||||
Other comprehensive income, net of tax | 6 | 6 | |||||
Dividends on common stock | (38,533) | (38,533) | |||||
Share-based compensation (in shares) | 425 | (34,393) | |||||
Share-based compensation | 2,031 | $ 2,222 | (191) | ||||
Issuance of common stock (in shares) | 55,707 | ||||||
Issuance of common stock | 3,832 | $ 56 | 3,776 | ||||
Issuance costs | (41) | (41) | |||||
Distributions to non-controlling interest | (4,420) | (4,420) | |||||
Ending balance (in shares) at Mar. 31, 2022 | 64,849,227 | 19,685 | |||||
Ending balance at Mar. 31, 2022 | 2,971,022 | $ 64,849 | $ (1,287) | 1,786,980 | 1,041,451 | (20,078) | 99,107 |
Beginning balance (in shares) at Dec. 31, 2022 | 66,140,396 | 36,726 | |||||
Beginning balance at Dec. 31, 2022 | 3,089,895 | $ 66,140 | $ (2,435) | 1,882,653 | 1,064,122 | (15,567) | 94,982 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 117,380 | 114,084 | 3,296 | ||||
Other comprehensive income, net of tax | 1,220 | 1,220 | |||||
Dividends on common stock | (41,362) | (41,362) | |||||
Share-based compensation (in shares) | 84,735 | 4,388 | |||||
Share-based compensation | 1,709 | $ 85 | $ (262) | 1,886 | |||
Issuance of common stock (in shares) | 445,578 | ||||||
Issuance of common stock | 27,719 | $ 446 | 27,273 | ||||
Issuance costs | (336) | (336) | |||||
Distributions to non-controlling interest | (4,494) | (4,494) | |||||
Ending balance (in shares) at Mar. 31, 2023 | 66,670,709 | 41,114 | |||||
Ending balance at Mar. 31, 2023 | $ 3,191,731 | $ 66,671 | $ (2,697) | $ 1,911,476 | $ 1,136,844 | $ (14,347) | $ 93,784 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends on common stock (usd per share) | $ 0.625 | $ 0.595 |
Management's Statement
Management's Statement | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Management's Statement | (1) Management’s Statement The unaudited Consolidated Financial Statements included herein have been prepared by Black Hills Corporation (together with our subsidiaries the “Company”, “us”, “we” or “our”), pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations; however, we believe that the footnotes adequately disclose the information presented. These Consolidated Financial Statements should be read in conjunction with the consolidated financial statements and the notes included in our 2022 Annual Report on Form 10-K. Use of Estimates and Basis of Presentation The information furnished in the accompanying Consolidated Financial Statements reflects certain estimates required and all adjustments, including accruals, which are, in the opinion of management, necessary for a fair presentation of the March 31, 2023, December 31, 2022 and March 31, 2022 financial information. Certain lines of business in which we operate are highly seasonal, and our interim results of operations are not necessarily indicative of the results of operations to be expected for an entire year. Recently Issued Accounting Standards Facilitation of the Effects of Reference Rate Reform on Financial Reporting, ASU 2020-04 In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which was subsequently amended by ASU 2021-01 and ASU 2022-06. The standard provides relief for companies preparing for discontinuation of interest rates, such as LIBOR, and allows optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update are elective and are effective upon the ASU issuance through December 31, 2024. We are currently evaluating if we will apply the optional guidance as we assess the impact of the discontinuance of LIBOR on our current arrangements. We do not expect the ASU to have a material impact on our financial position, results of operations and cash flows. |
Regulatory Matters
Regulatory Matters | 3 Months Ended |
Mar. 31, 2023 | |
Regulated Operations [Abstract] | |
Regulatory Matters | (2) Regulatory Matters We had the following regulatory assets and liabilities (in thousands): As of As of March 31, 2023 December 31, 2022 Regulatory assets Winter Storm Uri (a) $ 253,835 $ 347,980 Deferred energy and fuel cost adjustments (b) 79,020 72,580 Deferred gas cost adjustments (b) 16,047 12,147 Gas price derivatives (b) - 8,793 Deferred taxes on AFUDC (b) 7,482 7,333 Employee benefit plans and related deferred taxes (c) 88,710 89,259 Environmental (b) 1,341 1,343 Loss on reacquired debt (b) 18,764 19,213 Deferred taxes on flow through accounting (b) 74,022 69,529 Decommissioning costs (b) 2,850 3,472 Other regulatory assets (b) 19,798 21,332 Total regulatory assets 561,869 652,981 Less current regulatory assets ( 214,838 ) ( 260,312 ) Regulatory assets, non-current $ 347,031 $ 392,669 Regulatory liabilities Deferred energy and gas costs (b) $ 106,030 $ 41,722 Employee benefit plan costs and related deferred taxes (c) 33,839 34,258 Cost of removal (b) 177,453 175,614 Excess deferred income taxes (c) 248,126 254,833 Other regulatory liabilities (c) 11,613 12,146 Total regulatory liabilities 577,061 518,573 Less current regulatory liabilities ( 110,100 ) ( 46,013 ) Regulatory liabilities, non-current $ 466,961 $ 472,560 (a) Timing of Winter Storm Uri incremental cost recovery and associated carrying costs vary by jurisdiction. (b) Recovery or repayment of costs, but we are not allowed a rate of return. (c) In addition to recovery or repayment of costs, we are allowed a return on a portion of this amount or a reduction in rate base. Regulatory Activity Except as discussed below, there have been no other significant changes to our Regulatory Matters from those previously disclosed in Note 2 of the Notes to the Consolidated Financial Statements in our 2022 Annual Report on Form 10-K. RMNG On April 7, 2023, RMNG filed a settlement agreement with the CPUC for its rate review filed on October 7, 2022. The agreement is expected to generate $ 8.2 million in new annual revenue and establishes a weighted average cost of capital of 6.93 % with a capital structure that reflects an equity range of 50 % to 52 %, a debt range of 50 % to 48 % and a return on equity range of 9.5 % to 9.7 %. The settlement also shifts $ 8.3 million of SSIR revenues to base rates and terminates the SSIR. The agreement is awaiting a decision by an administrative law judge, with new rates expected in the third quarter of 2023. Wyoming Electric On June 1, 2022, Wyoming Electric filed a rate review with the WPSC seeking recovery of significant infrastructure investments in its 1330 -mile electric distribution and 59 -mile electric transmission systems. On January 26, 2023, the WPSC approved a settlement agreement with intervening parties for a general rate increase. The settlement is expected to generate $ 8.7 million in new annual revenue with a capital structure of 52 % equity and 48 % debt and a return on equity of 9.75 %. New rates were effective March 1, 2023. The agreement also includes approval of a new rider that will be filed annually to recover transmission investment and expenses. |
Commitment, Contingencies And G
Commitment, Contingencies And Guarantees | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Guarantees | (3) Commitments, Contingencies and Guarantees There have been no significant changes to commitments, contingencies and guarantees from those previously disclosed in Note 3 of our Notes to the Consolidated Financial Statements in our 2022 Annual Report on Form 10-K. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | (4) Revenue The following tables depict the disaggregation of revenue, including intercompany revenue, from contracts with customers by customer type and timing of revenue recognition for each of the reportable segments for the three months ended March 31, 2023 and 2022. Sales tax and other similar taxes are excluded from revenues. Three Months Ended March 31, 2023 Electric Utilities Gas Utilities Inter-company Revenues Total Customer types: (in thousands) Retail $ 174,903 $ 635,545 $ - $ 810,448 Transportation - 52,843 ( 115 ) 52,728 Wholesale 9,398 - - 9,398 Market - off-system sales 16,124 281 - 16,405 Transmission/Other 17,404 10,023 ( 4,351 ) 23,076 Revenue from contracts with customers $ 217,829 $ 698,692 $ ( 4,466 ) $ 912,055 Other revenues 880 8,224 - 9,104 Total revenues $ 218,709 $ 706,916 $ ( 4,466 ) $ 921,159 Timing of revenue recognition: Services transferred at a point in time $ 8,657 $ - $ - $ 8,657 Services transferred over time 209,172 698,692 ( 4,466 ) 903,398 Revenue from contracts with customers $ 217,829 $ 698,692 $ ( 4,466 ) $ 912,055 Three Months Ended March 31, 2022 Electric Utilities Gas Utilities Inter-company Revenues Total Customer types: (in thousands) Retail $ 172,806 $ 561,013 $ - $ 733,819 Transportation - 49,523 ( 99 ) 49,424 Wholesale 10,275 - - 10,275 Market - off-system sales 7,154 238 - 7,392 Transmission/Other 15,433 9,575 ( 4,149 ) 20,859 Revenue from contracts with customers $ 205,668 $ 620,349 $ ( 4,248 ) $ 821,769 Other revenues 870 1,043 ( 112 ) 1,801 Total revenues $ 206,538 $ 621,392 $ ( 4,360 ) $ 823,570 Timing of revenue recognition: Services transferred at a point in time $ 7,113 $ - $ - $ 7,113 Services transferred over time 198,555 620,349 ( 4,248 ) 814,656 Revenue from contracts with customers $ 205,668 $ 620,349 $ ( 4,248 ) $ 821,769 |
Financing
Financing | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Financing | (5) Financing Short-term Debt Revolving Credit Facility and CP Program Our Revolving Credit Facility and CP Program, which are classified as Notes payable on the Consolidated Balance Sheets, had the following borrowings, outstanding letters of credit, and available capacity (dollars in thousands): March 31, 2023 December 31, 2022 Amount outstanding $ — $ 535,600 Letters of credit (a) $ 2,401 $ 24,626 Available capacity $ 747,599 $ 189,774 Weighted average interest rates N/A 4.88 % (a) Letters of credit are off-balance sheet commitments that reduce the borrowing capacity available on our corporate Revolving Credit Facility . Revolving Credit Facility and CP Program borrowing activity was as follows (dollars in thousands): Three Months Ended March 31, 2023 2022 Maximum amount outstanding (based on daily outstanding balances) $ 548,700 $ 429,000 Average amount outstanding (based on daily outstanding balances) $ 331,268 $ 360,823 Weighted average interest rates 4.91 % 0.44 % Long-term Debt On March 7, 2023, we completed a public debt offering of $ 350 million, 5.95 % five year senior unsecured notes due March 15, 2028. The proceeds from the offering, which were net of $ 4.2 million of deferred financing costs, were used to repay notes outstanding under our CP Program and for other general corporate purposes. Debt Covenants Revolving Credit Facility Under our Revolving Credit Facility, we are required to maintain a Consolidated Indebtedness to Capitalization Ratio not to exceed 0.65 to 1.00. Subject to applicable cure periods, a violation of any of these covenants would constitute an event of default that entitles the lenders to terminate their remaining commitments and accelerate all principal and interest outstanding. We were in compliance with our covenants at March 31, 2023, as shown below: As of March 31, 2023 Covenant Requirement Consolidated Indebtedness to Capitalization Ratio 59.1 % Less than 65 % Wyoming Electric Covenants within Wyoming Electric's financing agreements require Wyoming Electric to maintain a debt to capitalization ratio of no more than 0.60 to 1.00. As of March 31, 2023, we were in compliance with these financial covenants. Equity At-the-Market Equity Offering Program ATM activity was as follows (net proceeds and issuance costs in millions): Three Months Ended March 31, 2023 2022 Proceeds, (net of issuance costs of $( 0.3 ), $( 0.0 ) respectively) $ 27.4 $ 3.8 Average price per share $ 62.21 $ 68.79 Number of shares issued 445,578 55,707 As of March 31, 2023 , there were 34,040 shares issued, but not settled. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | (6) Earnings Per Share A reconciliation of share amounts used to compute earnings per share in the accompanying Consolidated Statements of Income was as follows (in thousands, except per share amounts): Three Months Ended March 31, 2023 2022 Net income available for common stock $ 114,084 $ 117,526 Weighted average shares - basic 66,036 64,565 Dilutive effect of: Equity compensation 96 156 Weighted average shares - diluted 66,132 64,721 Earnings per share of common stock: Earnings per share, Basic $ 1.73 $ 1.82 Earnings per share, Diluted $ 1.73 $ 1.82 The following securities were excluded from the diluted earnings per share computation because of their anti-dilutive nature (in thousands): Three Months Ended March 31, 2023 2022 Equity compensation 53 - Anti-dilutive shares 53 - |
Risk Management And Derivatives
Risk Management And Derivatives | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Risk Management And Derivatives | (7) Risk Management and Derivatives Market and Credit Risk Disclosures Our activities in the energy industry expose us to a number of risks in the normal operations of our businesses. Depending on the activity, we are exposed to varying degrees of market risk and credit risk. Valuation methodologies for our derivatives are detailed within Note 1 of the Notes to the Consolidated Financial Statements in our 2022 Annual Report on Form 10-K. Market Risk Market risk is the potential loss that may occur as a result of an adverse change in market price, rate or supply. We are exposed but not limited to, the following market risks: • Commodity price risk associated with our retail natural gas and wholesale electric power marketing activities and our fuel procurement for several of our gas-fired generation assets, which include market fluctuations due to unpredictable factors such as weather, geopolitical events, pandemics, market speculation, recession, inflation, pipeline constraints, and other factors that may impact natural gas and electric supply and demand; and • Interest rate risk associated with future debt, including reduced access to liquidity during periods of extreme capital markets volatility. Credit Risk Credit risk is the risk of financial loss resulting from non-performance of contractual obligations by a counterparty. We attempt to mitigate our credit exposure by conducting business primarily with high credit quality entities, setting tenor and credit limits commensurate with counterparty financial strength, obtaining master netting agreements and mitigating credit exposure with less creditworthy counterparties through parental guarantees, cash collateral requirements, letters of credit and other security agreements. We perform ongoing credit evaluations of our customers and adjust credit limits based upon payment history and the customers’ current creditworthiness, as determined by review of their current credit information. We maintain a provision for estimated credit losses based upon historical experience, changes in current market conditions, expected losses and any specific customer collection issue that is identified. Derivatives and Hedging Activity Our derivative and hedging activities included in the accompanying Consolidated Balance Sheets, Consolidated Statements of Income and Consolidated Statements of Comprehensive Income are detailed below and in Note 8 . The operations of our Utilities, including natural gas sold by our Gas Utilities and natural gas used by our Electric Utilities’ generation plants or those plants under PPAs where our Electric Utilities must provide the generation fuel (tolling agreements), expose our utility customers to natural gas price volatility. Therefore, as allowed or required by state utility commissions, we enter into commission approved hedging programs utilizing natural gas futures, options, over-the-counter swaps and basis swaps to reduce our customers’ underlying exposure to these fluctuations. These transactions are considered derivatives, and in accordance with accounting standards for derivatives and hedging, mark-to-market adjustments are recorded as Derivative assets or Derivative liabilities on the accompanying Consolidated Balance Sheets, net of balance sheet offsetting as permitted by GAAP. For our regulated Utilities’ hedging plans, unrealized and realized gains and losses, as well as option premiums and commissions on these transactions, are recorded as Regulatory assets or Regulatory liabilities in the accompanying Consolidated Balance Sheets in accordance with the state regulatory commission guidelines. When the related costs are recovered through our rates, the hedging activity is recognized in the Consolidated Statements of Income. We use wholesale power purchase and sale contracts to manage purchased power costs and load requirements associated with serving our electric customers. Periodically, certain wholesale energy contracts are considered derivative instruments due to not qualifying for the normal purchase and normal sales exception to derivative accounting. Changes in the fair value of these commodity derivatives are recognized in the Consolidated Statements of Income. To support our Choice Gas Program customers, we buy, sell and deliver natural gas at competitive prices by managing commodity price risk. As a result of these activities, this area of our business is exposed to risks associated with changes in the market price of natural gas. We manage our exposure to such risks using over-the-counter and exchange traded options and swaps with counterparties in anticipation of forecasted purchases and sales during time frames ranging from April 2023 through October 2025. A portion of our over-the-counter swaps have been designated as cash flow hedges to mitigate the commodity price risk associated with deliveries under fixed price forward contracts to deliver gas to our Choice Gas Program customers. The gain or loss on these designated derivatives is reported in AOCI in the accompanying Consolidated Balance Sheets and reclassified into earnings in the same period that the underlying hedged item is recognized in earnings. Effectiveness of our hedging position is evaluated at least quarterly. The contract or notional amounts and terms of the electric and natural gas derivative commodity instruments held at our Utilities are composed of both long and short positions. We had the following net long positions as of: March 31, 2023 December 31, 2022 Notional Amounts (MMBtus) Maximum Term (months) (a) Notional Amounts (MMBtus) Maximum Term (months) (a) Natural gas futures purchased - N/A 630,000 3 Natural gas options purchased, net - N/A 1,790,000 3 Natural gas basis swaps purchased - N/A 900,000 3 Natural gas over-the-counter swaps, net (b) 3,270,000 26 4,460,000 24 Natural gas physical contracts, net (c) 3,881,190 12 17,864,412 12 (a) Term reflects the maximum forward period hedged. (b) As of March 31, 2023 , 574,800 MMBtus of natural gas over-the-counter swaps purchases were designated as cash flow hedges. (c) Volumes exclude derivative contracts that qualify for the normal purchases and normal sales exception permitted by GAAP. We have certain derivative contracts which contain credit provisions. These credit provisions may require the Company to post collateral when credit exposure to the Company is in excess of a negotiated line of unsecured credit. At March 31, 2023, the Company poste d $ 0.6 million re lated to such provisions, which is included in Other current assets on the Consolidated Balance Sheets. Derivatives by Balance Sheet Classification As required by accounting standards for derivatives and hedges, fair values within the following tables are presented on a gross basis aside from the netting of asset and liability positions. Netting of positions is permitted in accordance with accounting standards for offsetting and under terms of our master netting agreements that allow us to settle positive and negative positions. The following table presents the fair value and balance sheet classification of our derivative instruments (in thousands) as of: Balance Sheet Location March 31, December 31, Derivatives designated as hedges: Asset derivative instruments: Current commodity derivatives Derivative assets, current $ - $ 118 Noncurrent commodity derivatives Other assets, non-current - 198 Liability derivative instruments: Current commodity derivatives Derivative liabilities, current ( 543 ) ( 1,703 ) Noncurrent commodity derivatives Other assets, non-current ( 2 ) - Total derivatives designated as hedges $ ( 545 ) $ ( 1,387 ) Derivatives not designated as hedges: Asset derivative instruments: Current commodity derivatives Derivative assets, current $ 153 $ 464 Noncurrent commodity derivatives Other assets, non-current 111 337 Liability derivative instruments: Current commodity derivatives Derivative liabilities, current ( 1,186 ) ( 4,897 ) Noncurrent commodity derivatives Other deferred credits and other liabilities ( 20 ) ( 18 ) Total derivatives not designated as hedges $ ( 942 ) $ ( 4,114 ) Derivatives Designated as Hedge Instruments The impacts of cash flow hedges on our Consolidated Statements of Comprehensive Income and Consolidated Statements of Income are presented below for the three months ended March 31, 2023 and 2022. Note that this presentation does not reflect the gains or losses arising from the underlying physical transactions; therefore, it is not indicative of the economic profit or loss we realized when the underlying physical and financial transactions were settled. Three Months Ended Three Months Ended 2023 2022 2023 2022 Derivatives in Cash Flow Hedging Relationships Amount of Gain/(Loss) Recognized in OCI Location on the Consolidated Statements of Income Amount of Gain/(Loss) Reclassified from AOCI into Income (in thousands) (in thousands) Interest rate swaps $ 713 $ 713 Interest expense $ ( 713 ) $ ( 713 ) Commodity derivatives 827 ( 867 ) Fuel, purchased power and cost of natural gas sold ( 1,950 ) 2,254 Total $ 1,540 $ ( 154 ) $ ( 2,663 ) $ 1,541 As of March 31, 2023, $ 3.6 million of net losses related to our interest rate swaps and commodity derivatives are expected to be reclassified from AOCI into earnings within the next 12 months. As market prices fluctuate, estimated and actual realized gains or losses will change during future periods. Derivatives Not Designated as Hedge Instruments The following table summarizes the impacts of derivative instruments not designated as hedge instruments on our Consolidated Statements of Income for the three months ended March 31, 2023 and 2022. Note that this presentation does not reflect the expected gains or losses arising from the underlying physical transactions; therefore, it is not indicative of the economic profit or loss we realized when the underlying physical and financial transactions were settled. Three Months Ended March 31, 2023 2022 Derivatives Not Designated as Hedging Instruments Location of Gain/(Loss) on Derivatives Recognized in Income Amount of Gain/(Loss) on Derivatives Recognized in Income Commodity derivatives - Natural Gas Fuel, purchased power and cost of natural gas sold $ ( 3,094 ) $ 3,494 $ ( 3,094 ) $ 3,494 As discussed above, financial instruments used in our regulated Gas Utilities are not designated as cash flow hedges. However, there is no earnings impact because the unrealized gains and losses arising from the use of these financial instruments are recorded as Regulatory assets or Regulatory liabilities. The net unrealized gains included in our Regulatory liability accounts related to these financial instruments in our Gas Utilities were $ 0.1 million as of March 31, 2023. The net unrealized losses included in our Regulatory asset accounts related to these financial instruments were $ 8.8 million as of December 31, 2022 . For our Electric Utilities, the unrealized gains and losses arising from these derivatives are recognized in the Consolidated Statements of Income. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | (8) Fair Value Measurements We use the following fair value hierarchy for determining inputs for our financial instruments. Our assets and liabilities for financial instruments are classified and disclosed in one of the following fair value categories: Level 1 — Unadjusted quoted prices available in active markets that are accessible at the measurement date for identical unrestricted assets or liabilities. Level 1 instruments primarily consist of highly liquid and actively traded financial instruments with quoted pricing information on an ongoing basis. Level 2 — Pricing inputs include quoted prices for identical or similar assets and liabilities in active markets other than quoted prices in Level 1, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 — Pricing inputs are generally less observable from objective sources. These inputs reflect management’s best estimate of fair value using its own assumptions about the assumptions a market participant would use in pricing the asset or liability. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the placement within the fair value hierarchy levels. We record transfers, if necessary, between levels at the end of the reporting period for all of our financial instruments. Transfers into Level 3, if any, occur when significant inputs used to value the derivative instruments become less observable, such as a significant decrease in the frequency and volume in which the instrument is traded, negatively impacting the availability of observable pricing inputs. Transfers out of Level 3, if any, occur when the significant inputs become more observable, such as when the time between the valuation date and the delivery date of a transaction becomes shorter, positively impacting the availability of observable pricing inputs. Recurring Fair Value Measurements Derivatives The commodity contracts for our Utilities segments are valued using the market approach and include forward strip pricing at liquid delivery points, exchange-traded futures, options, basis swaps and over-the-counter swaps and options (Level 2) for wholesale electric energy and natural gas contracts. For exchange-traded futures, options and basis swap assets and liabilities, fair value was derived using broker quotes validated by the exchange settlement pricing for the applicable contract. For over-the-counter instruments, the fair value is obtained by utilizing a nationally recognized service that obtains observable inputs to compute the fair value, which we validate by comparing our valuation with the counterparty. The fair value of these swaps includes a credit valuation adjustment based on the credit spreads of the counterparties when we are in an unrealized gain position or on our own credit spread when we are in an unrealized loss position. For additional information, see Note 1 of our Notes to the Consolidated Financial Statements in our 2022 Annual Report on Form 10-K. The following tables set forth, by level within the fair value hierarchy, our gross assets and gross liabilities and related offsetting of cash collateral and contractual netting rights as permitted by GAAP that were accounted for at fair value on a recurring basis for derivative instruments. As of March 31, 2023 Level 1 Level 2 Level 3 Cash Collateral and Counterparty Netting (a) Total (in thousands) Assets: Commodity derivatives - Gas Utilities $ - $ 264 $ - $ - $ 264 Total $ - $ 264 $ - $ - $ 264 Liabilities: Commodity derivatives - Gas Utilities $ - $ 1,751 $ - $ - $ 1,751 Total $ - $ 1,751 $ - $ - $ 1,751 (a) As of March 31, 2023, we had no commodity derivative assets or liabilities, or related gross collateral amounts, that were subject to master netting agreements. As of December 31, 2022 Level 1 Level 2 Level 3 Cash Collateral and Counterparty Netting (a) Total (in thousands) Assets: Commodity derivatives - Gas Utilities $ - $ 5,407 $ - $ ( 4,290 ) $ 1,117 Total $ - $ 5,407 $ - $ ( 4,290 ) $ 1,117 Liabilities: Commodity derivatives - Gas Utilities $ - $ 11,455 $ - $ ( 4,837 ) $ 6,618 Total $ - $ 11,455 $ - $ ( 4,837 ) $ 6,618 (a) As of December 31, 2022 , $ 4.3 million of our commodity derivative assets and $ 4.8 million of our commodity derivative liabilities, as well as related gross collateral amounts, were subject to master netting agreements. Pension and Postretirement Plan Assets Fair value measurements also apply to the valuation of our pension and postretirement plan assets. Current accounting guidance requires employers to annually disclose information about the fair value measurements of their assets of a defined benefit pension or other postretirement plan. The fair value of these assets is presented in Note 13 to the Consolidated Financial Statements included in our 2022 Annual Report on Form 10-K. Other Fair Value Measures The carrying amount of cash and cash equivalents, restricted cash and equivalents and short-term borrowings approximates fair value due to their liquid or short-term nature. Cash, cash equivalents and restricted cash are classified in Level 1 in the fair value hierarchy. Notes payable consist of commercial paper borrowings and are not traded on an exchange; therefore, they are classified as Level 2 in the fair value hierarchy. The following table presents the carrying amounts and fair values of financial instruments not recorded at fair value on the Consolidated Balance Sheets (in thousands) as of: March 31, 2023 December 31, 2022 Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt, including current maturities (a) $ 4,479,409 $ 4,205,369 $ 4,132,340 $ 3,760,848 (a) Long-term debt is valued based on observable inputs available either directly or indirectly for similar liabilities in active markets and therefore is classified in Level 2 in the fair value hierarchy. Carrying amount of long-term debt is net of deferred financing costs. |
Other Comprehensive Income
Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | |
Other Comprehensive Income | (9) Other Comprehensive Income We record deferred gains (losses) in AOCI related to interest rate swaps designated as cash flow hedges, commodity contracts designated as cash flow hedges and the amortization of components of our defined benefit plans. Deferred gains (losses) for our commodity contracts designated as cash flow hedges are recognized in earnings upon settlement, while deferred gains (losses) related to our interest rate swaps are recognized in earnings as they are amortized. The following table details reclassifications out of AOCI and into Net income. The amounts in parentheses below indicate decreases to Net income in the Consolidated Statements of Income for the period, net of tax (in thousands): Amount Reclassified from AOCI Location on the Consolidated Statements of Income Three Months Ended March 31, 2023 2022 Gains and (losses) on cash flow hedges: Interest rate swaps Interest expense $ ( 713 ) $ ( 713 ) Commodity contracts Fuel, purchased power and cost of natural gas sold ( 1,950 ) 2,254 $ ( 2,663 ) $ 1,541 Income tax Income tax expense 616 ( 375 ) Total reclassification adjustments related to cash flow hedges, net of tax $ ( 2,047 ) $ 1,166 Amortization of components of defined benefit plans: Prior service cost Operations and maintenance $ - $ 24 Actuarial gain (loss) Operations and maintenance ( 44 ) ( 188 ) $ ( 44 ) $ ( 164 ) Income tax Income tax expense 16 39 Total reclassification adjustments related to defined benefit plans, net of tax $ ( 28 ) $ ( 125 ) Total reclassifications $ ( 2,075 ) $ 1,041 Balances by classification included within AOCI, net of tax on the accompanying Consolidated Balance Sheets were as follows (in thousands): Derivatives Designated as Cash Flow Hedges Interest Rate Swaps Commodity Derivatives Employee Benefit Plans Total As of December 31, 2022 $ ( 8,255 ) $ ( 1,200 ) $ ( 6,112 ) $ ( 15,567 ) Other comprehensive income (loss) before reclassifications - ( 855 ) - ( 855 ) Amounts reclassified from AOCI 563 1,484 28 2,075 As of March 31, 2023 $ ( 7,692 ) $ ( 571 ) $ ( 6,084 ) $ ( 14,347 ) Derivatives Designated as Cash Flow Hedges Interest Rate Swaps Commodity Derivatives Employee Benefit Plans Total As of December 31, 2021 $ ( 10,384 ) $ 1,476 $ ( 11,176 ) $ ( 20,084 ) Other comprehensive income (loss) before reclassifications - 1,047 - 1,047 Amounts reclassified from AOCI 536 ( 1,702 ) 125 ( 1,041 ) As of March 31, 2022 $ ( 9,848 ) $ 821 $ ( 11,051 ) $ ( 20,078 ) |
Employee Benefits Plans
Employee Benefits Plans | 3 Months Ended |
Mar. 31, 2023 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | (10) Employee Benefit Plans Components of Net Periodic Expense The components of net periodic expense were as follows (in thousands): Defined Benefit Pension Plan Supplemental Non-qualified Defined Benefit Plans Non-pension Defined Benefit Postretirement Healthcare Plan Three Months Ended March 31, 2023 2022 2023 2022 2023 2022 Service cost $ 614 $ 982 $ 914 $ ( 392 ) $ 381 $ 492 Interest cost 4,381 2,705 369 208 594 321 Expected return on plan assets ( 4,672 ) ( 4,631 ) - - ( 56 ) ( 31 ) Net amortization of prior service costs ( 17 ) ( 17 ) - - 10 ( 72 ) Recognized net actuarial loss (gain) 498 1,523 8 69 ( 3 ) 16 Net periodic expense (benefit) $ 804 $ 562 $ 1,291 $ ( 115 ) $ 926 $ 726 Plan Contributions Contributions to the Defined Benefit Pension Plan are cash contributions made directly to the Pension Plan Trust account. Contributions to the Postretirement Healthcare and Supplemental Plans are made in the form of benefit payments. Contributions made in the first three months of 2023 and anticipated contributions for 2023 and 2024 are as follows (in thousands): Contributions Made Additional Contributions Contributions Three Months Ended March 31, 2023 Anticipated for 2023 Anticipated for 2024 Defined Benefit Pension Plan $ - $ - $ - Non-pension Defined Benefit Postretirement Healthcare Plan $ 1,230 $ 3,690 $ 4,556 Supplemental Non-qualified Defined Benefit and Defined Contribution Plans $ 558 $ 1,673 $ 2,410 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (11) Income Taxes IRS Revenue Procedure 2023-15 On April 14, 2023, the IRS released Revenue Procedure 2023-15 “Amounts paid to improve tangible property.” The Revenue Procedure provides a safe harbor method of accounting that taxpayers may use to determine whether expenses to repair, maintain, replace, or improve natural gas transmission and distribution property must be capitalized. We are currently assessing the Revenue Procedure to determine its impact on our tax repairs deduction. Income Tax Expense and Effective Tax Rates Three Months Ended March 31, 2023 Compared to the Three Months Ended March 31, 2022 Income tax expense for the three months ended March 31, 2023 was $ 14.7 million compared to $ 14.5 million reported for the same period in 2022. For the three months ended March 31, 2023, the effective tax rate was 11.1 % which was comparable to 10.7 % for the same period in 2022. |
Business Segment Information
Business Segment Information | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting Information, Additional Information [Abstract] | |
Business Segment Information | (12) Business Segment Information Segment information was as follows (in thousands): Total assets (net of intercompany eliminations) as of: March 31, 2023 December 31, 2022 Electric Utilities $ 3,922,496 $ 3,929,721 Gas Utilities 5,419,216 5,578,282 Corporate and Other 118,424 110,227 Total assets $ 9,460,136 $ 9,618,230 External Operating Revenue Inter-company Operating Revenue Three Months Ended March 31, 2023 Contract Customers Other Revenues Contract Customers Other Revenues Total Revenues Segment: Electric Utilities $ 215,012 $ 881 $ 2,816 $ - $ 218,709 Gas Utilities 697,043 8,223 1,650 - 706,916 Inter-company eliminations - - ( 4,466 ) - ( 4,466 ) Total $ 912,055 $ 9,104 $ - $ - $ 921,159 External Operating Revenue Inter-company Operating Revenue Three Months Ended March 31, 2022 Contract Customers Other Revenues Contract Customers Other Revenues Total Revenues Segment: Electric Utilities $ 202,739 $ 870 $ 2,929 $ - $ 206,538 Gas Utilities 619,030 931 1,319 112 621,392 Inter-company eliminations - - ( 4,248 ) ( 112 ) ( 4,360 ) Total $ 821,769 $ 1,801 $ - $ - $ 823,570 Three Months Ended March 31, 2023 2022 Operating income (loss): Electric Utilities $ 61,060 $ 50,746 Gas Utilities 114,625 123,540 Corporate and Other ( 802 ) ( 933 ) Operating income 174,883 173,353 Interest expense, net ( 43,504 ) ( 38,545 ) Other income, net 674 704 Income tax expense ( 14,673 ) ( 14,488 ) Net income 117,380 121,024 Net income attributable to non-controlling interest ( 3,296 ) ( 3,498 ) Net income available for common stock $ 114,084 $ 117,526 |
Selected Balance Sheet Informat
Selected Balance Sheet Information | 3 Months Ended |
Mar. 31, 2023 | |
Selected Balance Sheet Information [Abstract] | |
Selected Balance Sheet Information | (13) Selected Balance Sheet Information Accounts Receivable and Allowance for Credit Losses Following is a summary of Accounts receivable, net included in the accompanying Consolidated Balance Sheets (in thousands) as of: March 31, 2023 December 31, 2022 Billed Accounts Receivable $ 327,949 $ 267,571 Unbilled Revenue 154,571 243,574 Less: Allowance for Credit Losses ( 5,431 ) ( 2,953 ) Account Receivable, net $ 477,089 $ 508,192 Changes to allowance for credit losses for the three months ended March 31, 2023 and 2022, respectively, were as follows (in thousands): Balance at Beginning of Year Additions Charged to Costs and Expenses Recoveries and Other Additions Write-offs and Other Deductions Balance at March 31, 2023 $ 2,953 $ 3,703 $ 641 $ ( 1,866 ) $ 5,431 2022 $ 2,113 $ 3,416 $ 655 $ ( 1,698 ) $ 4,486 Materials, Supplies and Fuel The following amounts by major classification are included in Materials, supplies and fuel on the accompanying Consolidated Balance Sheets (in thousands) as of: March 31, 2023 December 31, 2022 Materials and supplies $ 102,328 $ 99,734 Fuel - Electric Utilities 6,808 3,115 Natural gas in storage 20,824 104,572 Total materials, supplies and fuel $ 129,960 $ 207,421 Accrued Liabilities The following amounts by major classification are included in Accrued liabilities on the accompanying Consolidated Balance Sheets (in thousands) as of: March 31, 2023 December 31, 2022 Accrued employee compensation, benefits and withholdings $ 48,555 $ 62,890 Accrued property taxes 54,694 52,430 Customer deposits and prepayments 42,124 47,655 Accrued interest 47,928 33,798 Other (none of which is individually significant) 35,560 46,684 Total accrued liabilities $ 228,861 $ 243,457 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | (14) Subsequent Events Except as described in Notes 2 and 11 , there have been no events subsequent to March 31, 2023, which would require recognition in the consolidated financial statements or disclosures. |
Management's Statement (Policie
Management's Statement (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Use of Estimates and Basis of Presentation | Use of Estimates and Basis of Presentation The information furnished in the accompanying Consolidated Financial Statements reflects certain estimates required and all adjustments, including accruals, which are, in the opinion of management, necessary for a fair presentation of the March 31, 2023, December 31, 2022 and March 31, 2022 financial information. Certain lines of business in which we operate are highly seasonal, and our interim results of operations are not necessarily indicative of the results of operations to be expected for an entire year. |
Recently Issued and Adopted Accounting Standards | Recently Issued Accounting Standards Facilitation of the Effects of Reference Rate Reform on Financial Reporting, ASU 2020-04 In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which was subsequently amended by ASU 2021-01 and ASU 2022-06. The standard provides relief for companies preparing for discontinuation of interest rates, such as LIBOR, and allows optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update are elective and are effective upon the ASU issuance through December 31, 2024. We are currently evaluating if we will apply the optional guidance as we assess the impact of the discontinuance of LIBOR on our current arrangements. We do not expect the ASU to have a material impact on our financial position, results of operations and cash flows. |
Business Description And Signif
Business Description And Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Accounts Receivable and Allowance for Doubtful Accounts | Following is a summary of Accounts receivable, net included in the accompanying Consolidated Balance Sheets (in thousands) as of: March 31, 2023 December 31, 2022 Billed Accounts Receivable $ 327,949 $ 267,571 Unbilled Revenue 154,571 243,574 Less: Allowance for Credit Losses ( 5,431 ) ( 2,953 ) Account Receivable, net $ 477,089 $ 508,192 |
Financing Receivable, Current, Allowance for Credit Loss | Changes to allowance for credit losses for the three months ended March 31, 2023 and 2022, respectively, were as follows (in thousands): Balance at Beginning of Year Additions Charged to Costs and Expenses Recoveries and Other Additions Write-offs and Other Deductions Balance at March 31, 2023 $ 2,953 $ 3,703 $ 641 $ ( 1,866 ) $ 5,431 2022 $ 2,113 $ 3,416 $ 655 $ ( 1,698 ) $ 4,486 |
Materials, Supplies and Fuel | The following amounts by major classification are included in Materials, supplies and fuel on the accompanying Consolidated Balance Sheets (in thousands) as of: March 31, 2023 December 31, 2022 Materials and supplies $ 102,328 $ 99,734 Fuel - Electric Utilities 6,808 3,115 Natural gas in storage 20,824 104,572 Total materials, supplies and fuel $ 129,960 $ 207,421 |
Schedule of Accrued Liabilities | The following amounts by major classification are included in Accrued liabilities on the accompanying Consolidated Balance Sheets (in thousands) as of: March 31, 2023 December 31, 2022 Accrued employee compensation, benefits and withholdings $ 48,555 $ 62,890 Accrued property taxes 54,694 52,430 Customer deposits and prepayments 42,124 47,655 Accrued interest 47,928 33,798 Other (none of which is individually significant) 35,560 46,684 Total accrued liabilities $ 228,861 $ 243,457 |
Schedule of Earnings Per Share Reconciliation | A reconciliation of share amounts used to compute earnings per share in the accompanying Consolidated Statements of Income was as follows (in thousands, except per share amounts): Three Months Ended March 31, 2023 2022 Net income available for common stock $ 114,084 $ 117,526 Weighted average shares - basic 66,036 64,565 Dilutive effect of: Equity compensation 96 156 Weighted average shares - diluted 66,132 64,721 Earnings per share of common stock: Earnings per share, Basic $ 1.73 $ 1.82 Earnings per share, Diluted $ 1.73 $ 1.82 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following securities were excluded from the diluted earnings per share computation because of their anti-dilutive nature (in thousands): Three Months Ended March 31, 2023 2022 Equity compensation 53 - Anti-dilutive shares 53 - |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Regulated Operations [Abstract] | |
Schedule of Regulatory Assets and Liabilities | We had the following regulatory assets and liabilities (in thousands): As of As of March 31, 2023 December 31, 2022 Regulatory assets Winter Storm Uri (a) $ 253,835 $ 347,980 Deferred energy and fuel cost adjustments (b) 79,020 72,580 Deferred gas cost adjustments (b) 16,047 12,147 Gas price derivatives (b) - 8,793 Deferred taxes on AFUDC (b) 7,482 7,333 Employee benefit plans and related deferred taxes (c) 88,710 89,259 Environmental (b) 1,341 1,343 Loss on reacquired debt (b) 18,764 19,213 Deferred taxes on flow through accounting (b) 74,022 69,529 Decommissioning costs (b) 2,850 3,472 Other regulatory assets (b) 19,798 21,332 Total regulatory assets 561,869 652,981 Less current regulatory assets ( 214,838 ) ( 260,312 ) Regulatory assets, non-current $ 347,031 $ 392,669 Regulatory liabilities Deferred energy and gas costs (b) $ 106,030 $ 41,722 Employee benefit plan costs and related deferred taxes (c) 33,839 34,258 Cost of removal (b) 177,453 175,614 Excess deferred income taxes (c) 248,126 254,833 Other regulatory liabilities (c) 11,613 12,146 Total regulatory liabilities 577,061 518,573 Less current regulatory liabilities ( 110,100 ) ( 46,013 ) Regulatory liabilities, non-current $ 466,961 $ 472,560 (a) Timing of Winter Storm Uri incremental cost recovery and associated carrying costs vary by jurisdiction. (b) Recovery or repayment of costs, but we are not allowed a rate of return. (c) In addition to recovery or repayment of costs, we are allowed a return on a portion of this amount or a reduction in rate base. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables depict the disaggregation of revenue, including intercompany revenue, from contracts with customers by customer type and timing of revenue recognition for each of the reportable segments for the three months ended March 31, 2023 and 2022. Sales tax and other similar taxes are excluded from revenues. Three Months Ended March 31, 2023 Electric Utilities Gas Utilities Inter-company Revenues Total Customer types: (in thousands) Retail $ 174,903 $ 635,545 $ - $ 810,448 Transportation - 52,843 ( 115 ) 52,728 Wholesale 9,398 - - 9,398 Market - off-system sales 16,124 281 - 16,405 Transmission/Other 17,404 10,023 ( 4,351 ) 23,076 Revenue from contracts with customers $ 217,829 $ 698,692 $ ( 4,466 ) $ 912,055 Other revenues 880 8,224 - 9,104 Total revenues $ 218,709 $ 706,916 $ ( 4,466 ) $ 921,159 Timing of revenue recognition: Services transferred at a point in time $ 8,657 $ - $ - $ 8,657 Services transferred over time 209,172 698,692 ( 4,466 ) 903,398 Revenue from contracts with customers $ 217,829 $ 698,692 $ ( 4,466 ) $ 912,055 Three Months Ended March 31, 2022 Electric Utilities Gas Utilities Inter-company Revenues Total Customer types: (in thousands) Retail $ 172,806 $ 561,013 $ - $ 733,819 Transportation - 49,523 ( 99 ) 49,424 Wholesale 10,275 - - 10,275 Market - off-system sales 7,154 238 - 7,392 Transmission/Other 15,433 9,575 ( 4,149 ) 20,859 Revenue from contracts with customers $ 205,668 $ 620,349 $ ( 4,248 ) $ 821,769 Other revenues 870 1,043 ( 112 ) 1,801 Total revenues $ 206,538 $ 621,392 $ ( 4,360 ) $ 823,570 Timing of revenue recognition: Services transferred at a point in time $ 7,113 $ - $ - $ 7,113 Services transferred over time 198,555 620,349 ( 4,248 ) 814,656 Revenue from contracts with customers $ 205,668 $ 620,349 $ ( 4,248 ) $ 821,769 |
Financing (Tables)
Financing (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Debt | Our Revolving Credit Facility and CP Program, which are classified as Notes payable on the Consolidated Balance Sheets, had the following borrowings, outstanding letters of credit, and available capacity (dollars in thousands): March 31, 2023 December 31, 2022 Amount outstanding $ — $ 535,600 Letters of credit (a) $ 2,401 $ 24,626 Available capacity $ 747,599 $ 189,774 Weighted average interest rates N/A 4.88 % (a) Letters of credit are off-balance sheet commitments that reduce the borrowing capacity available on our corporate Revolving Credit Facility . Revolving Credit Facility and CP Program borrowing activity was as follows (dollars in thousands): Three Months Ended March 31, 2023 2022 Maximum amount outstanding (based on daily outstanding balances) $ 548,700 $ 429,000 Average amount outstanding (based on daily outstanding balances) $ 331,268 $ 360,823 Weighted average interest rates 4.91 % 0.44 % |
Credit Facility and Short Term Debt Covenants | We were in compliance with our covenants at March 31, 2023, as shown below: As of March 31, 2023 Covenant Requirement Consolidated Indebtedness to Capitalization Ratio 59.1 % Less than 65 % |
Summary of ATM Activity | ATM activity was as follows (net proceeds and issuance costs in millions): Three Months Ended March 31, 2023 2022 Proceeds, (net of issuance costs of $( 0.3 ), $( 0.0 ) respectively) $ 27.4 $ 3.8 Average price per share $ 62.21 $ 68.79 Number of shares issued 445,578 55,707 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share Reconciliation | A reconciliation of share amounts used to compute earnings per share in the accompanying Consolidated Statements of Income was as follows (in thousands, except per share amounts): Three Months Ended March 31, 2023 2022 Net income available for common stock $ 114,084 $ 117,526 Weighted average shares - basic 66,036 64,565 Dilutive effect of: Equity compensation 96 156 Weighted average shares - diluted 66,132 64,721 Earnings per share of common stock: Earnings per share, Basic $ 1.73 $ 1.82 Earnings per share, Diluted $ 1.73 $ 1.82 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following securities were excluded from the diluted earnings per share computation because of their anti-dilutive nature (in thousands): Three Months Ended March 31, 2023 2022 Equity compensation 53 - Anti-dilutive shares 53 - |
Risk Management And Derivativ_2
Risk Management And Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Contract or notional amounts and terms of marketing activities and derivative commodity instruments | The contract or notional amounts and terms of the electric and natural gas derivative commodity instruments held at our Utilities are composed of both long and short positions. We had the following net long positions as of: March 31, 2023 December 31, 2022 Notional Amounts (MMBtus) Maximum Term (months) (a) Notional Amounts (MMBtus) Maximum Term (months) (a) Natural gas futures purchased - N/A 630,000 3 Natural gas options purchased, net - N/A 1,790,000 3 Natural gas basis swaps purchased - N/A 900,000 3 Natural gas over-the-counter swaps, net (b) 3,270,000 26 4,460,000 24 Natural gas physical contracts, net (c) 3,881,190 12 17,864,412 12 (a) Term reflects the maximum forward period hedged. (b) As of March 31, 2023 , 574,800 MMBtus of natural gas over-the-counter swaps purchases were designated as cash flow hedges. (c) Volumes exclude derivative contracts that qualify for the normal purchases and normal sales exception permitted by GAAP. |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table presents the fair value and balance sheet classification of our derivative instruments (in thousands) as of: Balance Sheet Location March 31, December 31, Derivatives designated as hedges: Asset derivative instruments: Current commodity derivatives Derivative assets, current $ - $ 118 Noncurrent commodity derivatives Other assets, non-current - 198 Liability derivative instruments: Current commodity derivatives Derivative liabilities, current ( 543 ) ( 1,703 ) Noncurrent commodity derivatives Other assets, non-current ( 2 ) - Total derivatives designated as hedges $ ( 545 ) $ ( 1,387 ) Derivatives not designated as hedges: Asset derivative instruments: Current commodity derivatives Derivative assets, current $ 153 $ 464 Noncurrent commodity derivatives Other assets, non-current 111 337 Liability derivative instruments: Current commodity derivatives Derivative liabilities, current ( 1,186 ) ( 4,897 ) Noncurrent commodity derivatives Other deferred credits and other liabilities ( 20 ) ( 18 ) Total derivatives not designated as hedges $ ( 942 ) $ ( 4,114 ) |
Derivative Instruments, Gain (Loss) | The impacts of cash flow hedges on our Consolidated Statements of Comprehensive Income and Consolidated Statements of Income are presented below for the three months ended March 31, 2023 and 2022. Note that this presentation does not reflect the gains or losses arising from the underlying physical transactions; therefore, it is not indicative of the economic profit or loss we realized when the underlying physical and financial transactions were settled. Three Months Ended Three Months Ended 2023 2022 2023 2022 Derivatives in Cash Flow Hedging Relationships Amount of Gain/(Loss) Recognized in OCI Location on the Consolidated Statements of Income Amount of Gain/(Loss) Reclassified from AOCI into Income (in thousands) (in thousands) Interest rate swaps $ 713 $ 713 Interest expense $ ( 713 ) $ ( 713 ) Commodity derivatives 827 ( 867 ) Fuel, purchased power and cost of natural gas sold ( 1,950 ) 2,254 Total $ 1,540 $ ( 154 ) $ ( 2,663 ) $ 1,541 As of March 31, 2023, $ 3.6 million of net losses related to our interest rate swaps and commodity derivatives are expected to be reclassified from AOCI into earnings within the next 12 months. As market prices fluctuate, estimated and actual realized gains or losses will change during future periods. Derivatives Not Designated as Hedge Instruments The following table summarizes the impacts of derivative instruments not designated as hedge instruments on our Consolidated Statements of Income for the three months ended March 31, 2023 and 2022. Note that this presentation does not reflect the expected gains or losses arising from the underlying physical transactions; therefore, it is not indicative of the economic profit or loss we realized when the underlying physical and financial transactions were settled. Three Months Ended March 31, 2023 2022 Derivatives Not Designated as Hedging Instruments Location of Gain/(Loss) on Derivatives Recognized in Income Amount of Gain/(Loss) on Derivatives Recognized in Income Commodity derivatives - Natural Gas Fuel, purchased power and cost of natural gas sold $ ( 3,094 ) $ 3,494 $ ( 3,094 ) $ 3,494 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Hierarchy, Measured on Recurring Basis | The following tables set forth, by level within the fair value hierarchy, our gross assets and gross liabilities and related offsetting of cash collateral and contractual netting rights as permitted by GAAP that were accounted for at fair value on a recurring basis for derivative instruments. As of March 31, 2023 Level 1 Level 2 Level 3 Cash Collateral and Counterparty Netting (a) Total (in thousands) Assets: Commodity derivatives - Gas Utilities $ - $ 264 $ - $ - $ 264 Total $ - $ 264 $ - $ - $ 264 Liabilities: Commodity derivatives - Gas Utilities $ - $ 1,751 $ - $ - $ 1,751 Total $ - $ 1,751 $ - $ - $ 1,751 (a) As of March 31, 2023, we had no commodity derivative assets or liabilities, or related gross collateral amounts, that were subject to master netting agreements. As of December 31, 2022 Level 1 Level 2 Level 3 Cash Collateral and Counterparty Netting (a) Total (in thousands) Assets: Commodity derivatives - Gas Utilities $ - $ 5,407 $ - $ ( 4,290 ) $ 1,117 Total $ - $ 5,407 $ - $ ( 4,290 ) $ 1,117 Liabilities: Commodity derivatives - Gas Utilities $ - $ 11,455 $ - $ ( 4,837 ) $ 6,618 Total $ - $ 11,455 $ - $ ( 4,837 ) $ 6,618 (a) As of December 31, 2022 , $ 4.3 million of our commodity derivative assets and $ 4.8 million of our commodity derivative liabilities, as well as related gross collateral amounts, were subject to master netting agreements. |
Fair Value, by Balance Sheet Grouping | The following table presents the carrying amounts and fair values of financial instruments not recorded at fair value on the Consolidated Balance Sheets (in thousands) as of: March 31, 2023 December 31, 2022 Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt, including current maturities (a) $ 4,479,409 $ 4,205,369 $ 4,132,340 $ 3,760,848 (a) Long-term debt is valued based on observable inputs available either directly or indirectly for similar liabilities in active markets and therefore is classified in Level 2 in the fair value hierarchy. Carrying amount of long-term debt is net of deferred financing costs. |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | |
Reclassification out of Accumulated Other Comprehensive Income | The following table details reclassifications out of AOCI and into Net income. The amounts in parentheses below indicate decreases to Net income in the Consolidated Statements of Income for the period, net of tax (in thousands): Amount Reclassified from AOCI Location on the Consolidated Statements of Income Three Months Ended March 31, 2023 2022 Gains and (losses) on cash flow hedges: Interest rate swaps Interest expense $ ( 713 ) $ ( 713 ) Commodity contracts Fuel, purchased power and cost of natural gas sold ( 1,950 ) 2,254 $ ( 2,663 ) $ 1,541 Income tax Income tax expense 616 ( 375 ) Total reclassification adjustments related to cash flow hedges, net of tax $ ( 2,047 ) $ 1,166 Amortization of components of defined benefit plans: Prior service cost Operations and maintenance $ - $ 24 Actuarial gain (loss) Operations and maintenance ( 44 ) ( 188 ) $ ( 44 ) $ ( 164 ) Income tax Income tax expense 16 39 Total reclassification adjustments related to defined benefit plans, net of tax $ ( 28 ) $ ( 125 ) Total reclassifications $ ( 2,075 ) $ 1,041 |
Schedule of Accumulated Other Comprehensive Income (Loss) | Balances by classification included within AOCI, net of tax on the accompanying Consolidated Balance Sheets were as follows (in thousands): Derivatives Designated as Cash Flow Hedges Interest Rate Swaps Commodity Derivatives Employee Benefit Plans Total As of December 31, 2022 $ ( 8,255 ) $ ( 1,200 ) $ ( 6,112 ) $ ( 15,567 ) Other comprehensive income (loss) before reclassifications - ( 855 ) - ( 855 ) Amounts reclassified from AOCI 563 1,484 28 2,075 As of March 31, 2023 $ ( 7,692 ) $ ( 571 ) $ ( 6,084 ) $ ( 14,347 ) Derivatives Designated as Cash Flow Hedges Interest Rate Swaps Commodity Derivatives Employee Benefit Plans Total As of December 31, 2021 $ ( 10,384 ) $ 1,476 $ ( 11,176 ) $ ( 20,084 ) Other comprehensive income (loss) before reclassifications - 1,047 - 1,047 Amounts reclassified from AOCI 536 ( 1,702 ) 125 ( 1,041 ) As of March 31, 2022 $ ( 9,848 ) $ 821 $ ( 11,051 ) $ ( 20,078 ) |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Defined Benefit Plan Disclosure [Line Items] | |
Components of Net Periodic Benefit Cost | The components of net periodic expense were as follows (in thousands): Defined Benefit Pension Plan Supplemental Non-qualified Defined Benefit Plans Non-pension Defined Benefit Postretirement Healthcare Plan Three Months Ended March 31, 2023 2022 2023 2022 2023 2022 Service cost $ 614 $ 982 $ 914 $ ( 392 ) $ 381 $ 492 Interest cost 4,381 2,705 369 208 594 321 Expected return on plan assets ( 4,672 ) ( 4,631 ) - - ( 56 ) ( 31 ) Net amortization of prior service costs ( 17 ) ( 17 ) - - 10 ( 72 ) Recognized net actuarial loss (gain) 498 1,523 8 69 ( 3 ) 16 Net periodic expense (benefit) $ 804 $ 562 $ 1,291 $ ( 115 ) $ 926 $ 726 |
Schedule of Employer Contribution to Employee Benefit Plans | Contributions made in the first three months of 2023 and anticipated contributions for 2023 and 2024 are as follows (in thousands): Contributions Made Additional Contributions Contributions Three Months Ended March 31, 2023 Anticipated for 2023 Anticipated for 2024 Defined Benefit Pension Plan $ - $ - $ - Non-pension Defined Benefit Postretirement Healthcare Plan $ 1,230 $ 3,690 $ 4,556 Supplemental Non-qualified Defined Benefit and Defined Contribution Plans $ 558 $ 1,673 $ 2,410 |
Business Segment Information (T
Business Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting Information, Additional Information [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Segment information was as follows (in thousands): Total assets (net of intercompany eliminations) as of: March 31, 2023 December 31, 2022 Electric Utilities $ 3,922,496 $ 3,929,721 Gas Utilities 5,419,216 5,578,282 Corporate and Other 118,424 110,227 Total assets $ 9,460,136 $ 9,618,230 External Operating Revenue Inter-company Operating Revenue Three Months Ended March 31, 2023 Contract Customers Other Revenues Contract Customers Other Revenues Total Revenues Segment: Electric Utilities $ 215,012 $ 881 $ 2,816 $ - $ 218,709 Gas Utilities 697,043 8,223 1,650 - 706,916 Inter-company eliminations - - ( 4,466 ) - ( 4,466 ) Total $ 912,055 $ 9,104 $ - $ - $ 921,159 External Operating Revenue Inter-company Operating Revenue Three Months Ended March 31, 2022 Contract Customers Other Revenues Contract Customers Other Revenues Total Revenues Segment: Electric Utilities $ 202,739 $ 870 $ 2,929 $ - $ 206,538 Gas Utilities 619,030 931 1,319 112 621,392 Inter-company eliminations - - ( 4,248 ) ( 112 ) ( 4,360 ) Total $ 821,769 $ 1,801 $ - $ - $ 823,570 Three Months Ended March 31, 2023 2022 Operating income (loss): Electric Utilities $ 61,060 $ 50,746 Gas Utilities 114,625 123,540 Corporate and Other ( 802 ) ( 933 ) Operating income 174,883 173,353 Interest expense, net ( 43,504 ) ( 38,545 ) Other income, net 674 704 Income tax expense ( 14,673 ) ( 14,488 ) Net income 117,380 121,024 Net income attributable to non-controlling interest ( 3,296 ) ( 3,498 ) Net income available for common stock $ 114,084 $ 117,526 |
Selected Balance Sheet Inform_2
Selected Balance Sheet Information (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Selected Balance Sheet Information [Abstract] | |
Account Receivable Schedule | Following is a summary of Accounts receivable, net included in the accompanying Consolidated Balance Sheets (in thousands) as of: March 31, 2023 December 31, 2022 Billed Accounts Receivable $ 327,949 $ 267,571 Unbilled Revenue 154,571 243,574 Less: Allowance for Credit Losses ( 5,431 ) ( 2,953 ) Account Receivable, net $ 477,089 $ 508,192 |
Financing Receivable, Current, Allowance for Credit Loss | Changes to allowance for credit losses for the three months ended March 31, 2023 and 2022, respectively, were as follows (in thousands): Balance at Beginning of Year Additions Charged to Costs and Expenses Recoveries and Other Additions Write-offs and Other Deductions Balance at March 31, 2023 $ 2,953 $ 3,703 $ 641 $ ( 1,866 ) $ 5,431 2022 $ 2,113 $ 3,416 $ 655 $ ( 1,698 ) $ 4,486 |
Materials, Supplies and Fuel | The following amounts by major classification are included in Materials, supplies and fuel on the accompanying Consolidated Balance Sheets (in thousands) as of: March 31, 2023 December 31, 2022 Materials and supplies $ 102,328 $ 99,734 Fuel - Electric Utilities 6,808 3,115 Natural gas in storage 20,824 104,572 Total materials, supplies and fuel $ 129,960 $ 207,421 |
Schedule of Accrued Liabilities | The following amounts by major classification are included in Accrued liabilities on the accompanying Consolidated Balance Sheets (in thousands) as of: March 31, 2023 December 31, 2022 Accrued employee compensation, benefits and withholdings $ 48,555 $ 62,890 Accrued property taxes 54,694 52,430 Customer deposits and prepayments 42,124 47,655 Accrued interest 47,928 33,798 Other (none of which is individually significant) 35,560 46,684 Total accrued liabilities $ 228,861 $ 243,457 |
Regulatory Matters_ Regulatory
Regulatory Matters: Regulatory Matters (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Regulatory assets | $ 561,869 | $ 652,981 |
Regulatory assets, current | (214,838) | (260,312) |
Regulatory assets, non-current | 347,031 | 392,669 |
Regulatory liabilities | 577,061 | 518,573 |
Regulatory liabilities, current | (110,100) | (46,013) |
Regulatory liabilities, non-current | 466,961 | 472,560 |
Deferred energy and gas costs | ||
Regulatory liabilities | 106,030 | 41,722 |
Employee benefit plan costs and related deferred taxes | ||
Regulatory liabilities | 33,839 | 34,258 |
Cost of removal | ||
Regulatory liabilities | 177,453 | 175,614 |
Excess deferred income taxes | ||
Regulatory liabilities | 248,126 | 254,833 |
Other regulatory liabilities | ||
Regulatory liabilities | 11,613 | 12,146 |
Storm Costs | ||
Regulatory assets | 253,835 | 347,980 |
Deferred energy and gas costs | ||
Regulatory assets | 79,020 | 72,580 |
Deferred gas cost adjustments | ||
Regulatory assets | 16,047 | 12,147 |
Gas price derivatives | ||
Regulatory assets | 0 | 8,793 |
Regulatory liabilities | 100 | |
Deferred taxes on AFUDC | ||
Regulatory assets | 7,482 | 7,333 |
Employee benefit plans and related deferred taxes | ||
Regulatory assets | 88,710 | 89,259 |
Environmental | ||
Regulatory assets | 1,341 | 1,343 |
Loss on reacquired debt | ||
Regulatory assets | 18,764 | 19,213 |
Deferred taxes on flow through accounting | ||
Regulatory assets | 74,022 | 69,529 |
Decommissioning costs | ||
Regulatory assets | 2,850 | 3,472 |
Other regulatory assets | ||
Regulatory assets | $ 19,798 | $ 21,332 |
Regulatory Matters_ Gas Utiliti
Regulatory Matters: Gas Utilities Regulatory Activity (Details) $ in Millions | Apr. 07, 2023 USD ($) | Jan. 26, 2023 USD ($) | Jun. 01, 2022 mi |
Colorado Public Utilities Commission (CPUC) | Black Hills Energy - Colorado Gas | Settlement agreement reached with CPUC Staff and various intervenors, subject to the review and approval by an Administrative Law Judge and the CPUC. | |||
Public Utilities, General Disclosures [Line Items] | |||
Public Utilities Amount of System Safety and Integrity Rider Moved to Base Rates and Termination of the System Safety and Integrity Rider | $ 8.3 | ||
Colorado Public Utilities Commission (CPUC) | Black Hills Energy - Colorado Gas | Settlement Reached with the Regulatory Agency | |||
Public Utilities, General Disclosures [Line Items] | |||
Weighted average cost of capital | 6.93% | ||
Public Utilities, Approved Rate Increase (Decrease), Amount | $ 8.2 | ||
Colorado Public Utilities Commission (CPUC) | Black Hills Energy - Colorado Gas | Settlement Reached with the Regulatory Agency | Minimum | |||
Public Utilities, General Disclosures [Line Items] | |||
Public Utilities, Approved Equity Capital Structure, Percentage | 50% | ||
Public Utilities, Approved Debt Capital Structure, Percentage | 50% | ||
Public Utilities, Approved Return on Equity, Percentage | 9.50% | ||
Colorado Public Utilities Commission (CPUC) | Black Hills Energy - Colorado Gas | Settlement Reached with the Regulatory Agency | Maximum | |||
Public Utilities, General Disclosures [Line Items] | |||
Public Utilities, Approved Equity Capital Structure, Percentage | 52% | ||
Public Utilities, Approved Debt Capital Structure, Percentage | 48% | ||
Public Utilities, Approved Return on Equity, Percentage | 9.70% | ||
Wyoming Public Service Commission | Wyoming Electric | Rate Review Filed with the Regulatory Agency | |||
Public Utilities, General Disclosures [Line Items] | |||
Public Utilities - Length of Electric Distribution Lines to Receive Infrastructure Investments | mi | 1,330 | ||
Public Utilities - Length of Electric Transmission Lines to Receive Infrastructure Investments | mi | 59 | ||
Wyoming Public Service Commission | Wyoming Electric | Settlement Reached with the Regulatory Agency | |||
Public Utilities, General Disclosures [Line Items] | |||
Public Utilities, Approved Equity Capital Structure, Percentage | 52% | ||
Public Utilities, Approved Debt Capital Structure, Percentage | 48% | ||
Public Utilities, Approved Return on Equity, Percentage | 9.75% | ||
Public Utilities, Approved Rate Increase (Decrease), Amount | $ 8.7 |
Revenue_ Disaggregation of Reve
Revenue: Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue from contracts with customers | $ 912,055 | $ 821,769 |
Revenue | 921,159 | 823,570 |
Retail - Electric , Natural Gas and Coal | ||
Revenue from contracts with customers | 810,448 | 733,819 |
Transportation | ||
Revenue from contracts with customers | 52,728 | 49,424 |
Wholesale | ||
Revenue from contracts with customers | 9,398 | 10,275 |
Market - off-system sales | ||
Revenue from contracts with customers | 16,405 | 7,392 |
Transmission/Other | ||
Revenue from contracts with customers | 23,076 | 20,859 |
Other revenues | ||
Revenue | 9,104 | 1,801 |
Services transferred at a point in time | ||
Revenue from contracts with customers | 8,657 | 7,113 |
Services transferred over time | ||
Revenue from contracts with customers | 903,398 | 814,656 |
Electric Utilities | ||
Revenue from contracts with customers | 217,829 | 205,668 |
Revenue | 218,709 | 206,538 |
Electric Utilities | Retail - Electric , Natural Gas and Coal | ||
Revenue from contracts with customers | 174,903 | 172,806 |
Electric Utilities | Transportation | ||
Revenue from contracts with customers | 0 | 0 |
Electric Utilities | Wholesale | ||
Revenue from contracts with customers | 9,398 | 10,275 |
Electric Utilities | Market - off-system sales | ||
Revenue from contracts with customers | 16,124 | 7,154 |
Electric Utilities | Transmission/Other | ||
Revenue from contracts with customers | 17,404 | 15,433 |
Electric Utilities | Other revenues | ||
Revenue | 880 | 870 |
Electric Utilities | Services transferred at a point in time | ||
Revenue from contracts with customers | 8,657 | 7,113 |
Electric Utilities | Services transferred over time | ||
Revenue from contracts with customers | 209,172 | 198,555 |
Gas Utilities | ||
Revenue from contracts with customers | 698,692 | 620,349 |
Revenue | 706,916 | 621,392 |
Gas Utilities | Retail - Electric , Natural Gas and Coal | ||
Revenue from contracts with customers | 635,545 | 561,013 |
Gas Utilities | Transportation | ||
Revenue from contracts with customers | 52,843 | 49,523 |
Gas Utilities | Wholesale | ||
Revenue from contracts with customers | 0 | 0 |
Gas Utilities | Market - off-system sales | ||
Revenue from contracts with customers | 281 | 238 |
Gas Utilities | Transmission/Other | ||
Revenue from contracts with customers | 10,023 | 9,575 |
Gas Utilities | Other revenues | ||
Revenue | 8,224 | 1,043 |
Gas Utilities | Services transferred at a point in time | ||
Revenue from contracts with customers | 0 | 0 |
Gas Utilities | Services transferred over time | ||
Revenue from contracts with customers | 698,692 | 620,349 |
Intercompany Eliminations | ||
Revenue from contracts with customers | (4,466) | (4,248) |
Revenue | (4,466) | (4,360) |
Intercompany Eliminations | Retail - Electric , Natural Gas and Coal | ||
Revenue from contracts with customers | 0 | 0 |
Intercompany Eliminations | Transportation | ||
Revenue from contracts with customers | (115) | (99) |
Intercompany Eliminations | Wholesale | ||
Revenue from contracts with customers | 0 | 0 |
Intercompany Eliminations | Market - off-system sales | ||
Revenue from contracts with customers | 0 | 0 |
Intercompany Eliminations | Transmission/Other | ||
Revenue from contracts with customers | (4,351) | (4,149) |
Intercompany Eliminations | Other revenues | ||
Revenue | 0 | (112) |
Intercompany Eliminations | Services transferred at a point in time | ||
Revenue from contracts with customers | 0 | 0 |
Intercompany Eliminations | Services transferred over time | ||
Revenue from contracts with customers | $ (4,466) | $ (4,248) |
Financing - Schedule of Short-t
Financing - Schedule of Short-term Debt and Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Short-Term Debt [Line Items] | |||
Amount outstanding | $ 0 | $ 535,600 | |
Revolving Credit Facility | Commercial Paper | |||
Short-Term Debt [Line Items] | |||
Amount outstanding | 0 | 535,600 | |
Letters of Credit | 2,401 | 24,626 | |
Available capacity | 747,599 | $ 189,774 | |
Weighted average interest rates | 4.88% | ||
Maximum amount outstanding (based on daily outstanding balances) | 548,700 | $ 429,000 | |
Average amount outstanding (based on daily outstanding balances) | $ 331,268 | $ 360,823 | |
Weighted average interest rates | 4.91% | 0.44% |
Financing_ Long-Term Debt (Addi
Financing: Long-Term Debt (Additional Information) (Details) - Senior Unsecured Notes Due 2028 $ in Millions | Mar. 07, 2023 USD ($) |
Debt Instrument [Line Items] | |
Stated interest rate (percent) | 5.95% |
Debt Instrument, Term | 5 years |
Less unamortized deferred financing costs | $ 4.2 |
Corporate, Non-Segment | |
Debt Instrument [Line Items] | |
Proceeds from Issuance of Debt | $ 350 |
Financing_ Debt Covenants (Deta
Financing: Debt Covenants (Details) | Mar. 31, 2023 |
Debt Instrument [Line Items] | |
Consolidated Indebtedness to Capitalization Ratio | 0.591 |
Maximum | |
Debt Instrument [Line Items] | |
Consolidated Indebtedness to Capitalization Ratio | 0.65 |
Financing_ Debt Covenants (Addi
Financing: Debt Covenants (Additional Information) (Details) - Maximum | Mar. 31, 2023 |
Line of Credit Facility [Line Items] | |
Consolidated Indebtedness to Capitalization Ratio | 0.65 |
Wyoming Electric | |
Line of Credit Facility [Line Items] | |
Consolidated Indebtedness to Capitalization Ratio | 0.60 |
Financing_ At-the-Market Equity
Financing: At-the-Market Equity Offering Program (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Number of shares issued | 445,578 | 55,707 |
Number of shares issued | 34,040 | |
Common Stock | ||
Proceeds, (net of issuance costs) | $ 27,400 | $ 3,800 |
Average price per share | $ 62.21 | $ 68.79 |
Payments of Stock Issuance Costs | $ (300,000) | $ 0 |
Earnings Per Share - Earnings P
Earnings Per Share - Earnings Per Share Reconciliation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Net income available for common stock | $ 114,084 | $ 117,526 |
Weighted average shares - Basic (in shares) | 66,036 | 64,565 |
Dilutive effect of: | ||
Equity compensation (in shares) | 96 | 156 |
Weighted average shares - diluted (in shares) | 66,132 | 64,721 |
Earnings per share, Basic (usd per share) | $ 1.73 | $ 1.82 |
Earnings per share, Diluted (usd per share) | $ 1.73 | $ 1.82 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Anti-dilutive shares (in shares) | 53 | 0 |
Share-Based Payment Arrangement [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Anti-dilutive shares (in shares) | 53 | 0 |
Property, Plant and Equipment (
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Total gross property, plant and equipment | $ 8,466,173 | $ 8,374,790 |
Less accumulated depreciation and depletion | (1,628,772) | (1,576,842) |
Property, plant and equipment of variable interest entities, net | $ 6,837,401 | $ 6,797,948 |
Risk Management and Derivativ_3
Risk Management and Derivatives: Utilities (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 USD ($) MMBTU | Dec. 31, 2022 MMBTU | ||
Derivative [Line Items] | |||
Credit Risk Derivative Liabilities, at Fair Value | $ | $ 0.6 | ||
Natural Gas, Distribution | Cash Flow Hedging | |||
Derivative [Line Items] | |||
Derivative, Nonmonetary Notional Amount | 574,800 | ||
Natural Gas, Distribution | Natural gas futures purchased | |||
Derivative [Line Items] | |||
Derivative, Remaining Maturity | [1] | 3 months | |
Natural Gas, Distribution | Natural gas futures purchased | Long | |||
Derivative [Line Items] | |||
Derivative, Nonmonetary Notional Amount | 630,000 | ||
Natural Gas, Distribution | Natural gas options purchased, net | |||
Derivative [Line Items] | |||
Derivative, Remaining Maturity | [1] | 3 months | |
Natural Gas, Distribution | Natural gas options purchased, net | Long | |||
Derivative [Line Items] | |||
Derivative, Nonmonetary Notional Amount | 1,790,000 | ||
Natural Gas, Distribution | Natural gas basis swaps purchased | |||
Derivative [Line Items] | |||
Derivative, Remaining Maturity | [1] | 3 months | |
Natural Gas, Distribution | Natural gas basis swaps purchased | Long | |||
Derivative [Line Items] | |||
Derivative, Nonmonetary Notional Amount | 900,000 | ||
Natural Gas, Distribution | Natural gas over-the-counter swaps, net | |||
Derivative [Line Items] | |||
Derivative, Remaining Maturity | [1],[2] | 26 months | 24 months |
Natural Gas, Distribution | Natural gas over-the-counter swaps, net | Long | |||
Derivative [Line Items] | |||
Derivative, Nonmonetary Notional Amount | [2] | 3,270,000 | 4,460,000 |
Natural Gas, Distribution | Natural gas physical contracts, net | |||
Derivative [Line Items] | |||
Derivative, Remaining Maturity | [1],[3] | 12 months | 12 months |
Natural Gas, Distribution | Natural gas physical contracts, net | Long | |||
Derivative [Line Items] | |||
Derivative, Nonmonetary Notional Amount | [3] | 3,881,190 | 17,864,412 |
[1] Term reflects the maximum forward period hedged. As of March 31, 2023 , 574,800 MMBtus of natural gas over-the-counter swaps purchases were designated as cash flow hedges. Volumes exclude derivative contracts that qualify for the normal purchases and normal sales exception permitted by GAAP. |
Risk Management and Derivativ_4
Risk Management and Derivatives: Derivatives by Balance Sheet Classification (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | $ (545) | $ (1,387) |
Commodity Contract | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | (942) | (4,114) |
Derivative assets, current | Commodity Contract | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 118 |
Derivative assets, current | Commodity Contract | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 153 | 464 |
Other assets, non-current | Commodity Contract | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 198 |
Derivative Liability, Fair Value, Gross Liability | (2) | |
Other assets, non-current | Commodity Contract | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 111 | 337 |
Derivative liabilities, current | Commodity Contract | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | (543) | (1,703) |
Derivative liabilities, current | Commodity Contract | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | (1,186) | (4,897) |
Other deferred credits and other liabilities | Commodity Contract | Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | $ (20) | $ (18) |
Risk Management and Derivativ_5
Risk Management and Derivatives: Cash Flow Hedges (Details) - Cash Flow Hedging - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Interest rate swaps | ||
Derivative [Line Items] | ||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 3,600 | |
Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Unrealized Gain (Loss) on Cash Flow Hedging Instruments | 1,540 | $ (154) |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ (2,663) | $ 1,541 |
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest |
Designated as Hedging Instrument | Interest rate swaps | ||
Derivative [Line Items] | ||
Unrealized Gain (Loss) on Cash Flow Hedging Instruments | $ 713 | $ 713 |
Derivative Instruments, Loss Reclassified from Accumulated OCI into Income, Effective Portion | $ (713) | $ (713) |
Derivative Instrument, Loss Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest Costs Incurred | Interest Costs Incurred |
Designated as Hedging Instrument | Commodity Contract | ||
Derivative [Line Items] | ||
Unrealized Gain (Loss) on Cash Flow Hedging Instruments | $ 827 | $ (867) |
Derivative Instruments, Loss Reclassified from Accumulated OCI into Income, Effective Portion | $ (1,950) | |
Derivative Instruments, Gain Reclassified from Accumulated OCI into Income, Effective Portion | $ 2,254 | |
Derivative Instrument, Gain Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Fuel, Purchased Power and Cost of Gas Sold | Fuel, Purchased Power and Cost of Gas Sold |
Risk Management and Derivativ_6
Risk Management and Derivatives: Derivatives Not Designated as Hedge Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Derivative [Line Items] | |||
Regulatory assets | $ 561,869 | $ 652,981 | |
Regulatory liabilities | 577,061 | 518,573 | |
Gas price derivatives | |||
Derivative [Line Items] | |||
Regulatory assets | 0 | $ 8,793 | |
Regulatory liabilities | 100 | ||
Not Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | $ (3,094) | $ 3,494 | |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Fuel, Purchased Power and Cost of Gas Sold | Fuel, Purchased Power and Cost of Gas Sold | |
Not Designated as Hedging Instrument | Natural Gas | |||
Derivative [Line Items] | |||
Derivative, Loss on Derivative | $ (3,094) | ||
Derivative, Loss, Statement of Income or Comprehensive Income [Extensible Enumeration] | Fuel, Purchased Power and Cost of Gas Sold | Fuel, Purchased Power and Cost of Gas Sold | |
Derivative, Gain on Derivative | $ 3,494 |
Fair Value Measurements_ Schedu
Fair Value Measurements: Schedule of Fair Values (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Derivative Asset, Current | Derivative Asset, Current |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Derivative Liability, Current | Derivative Liability, Current |
Contract Subject to Master Netting | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | $ 4,300 | |
Derivative Liability, Fair Value, Gross Liability | 4,800 | |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | $ 0 | (4,290) |
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | 0 | (4,837) |
Fair Value, Measurements, Recurring | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets, Total | 264 | 1,117 |
Derivative Liabilities, Total | 1,751 | 6,618 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets, Total | 0 | 0 |
Derivative Liabilities, Total | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets, Total | 264 | 5,407 |
Derivative Liabilities, Total | 1,751 | 11,455 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets, Total | 0 | 0 |
Derivative Liabilities, Total | 0 | 0 |
Fair Value, Measurements, Recurring | Gas Utilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | 0 | (4,290) |
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | 0 | (4,837) |
Fair Value, Measurements, Recurring | Gas Utilities | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets, Fair Value Disclosure | 264 | 1,117 |
Derivative, Liabilities, Fair Value Disclosure | 1,751 | 6,618 |
Fair Value, Measurements, Recurring | Gas Utilities | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets, Fair Value Disclosure | 0 | 0 |
Derivative, Liabilities, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring | Gas Utilities | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets, Fair Value Disclosure | 264 | 5,407 |
Derivative, Liabilities, Fair Value Disclosure | 1,751 | 11,455 |
Fair Value, Measurements, Recurring | Gas Utilities | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets, Fair Value Disclosure | 0 | 0 |
Derivative, Liabilities, Fair Value Disclosure | $ 0 | $ 0 |
Fair Value Measurements_ Other
Fair Value Measurements: Other Fair Value Measurements (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt | $ 4,479,409 | $ 4,132,340 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt | $ 4,205,369 | $ 3,760,848 |
Other Comprehensive Income_ Rec
Other Comprehensive Income: Reclassification Out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Interest expense | $ 44,065 | $ 38,821 |
Fuel, purchased power and cost of natural gas sold | 526,267 | 436,926 |
Operations and maintenance | 140,988 | 136,132 |
Income Tax Expense (Benefit) | (14,673) | (14,488) |
Net income | 117,380 | 121,024 |
Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Operations and maintenance | 0 | 24 |
Net income | (2,075) | 1,041 |
Cash Flow Hedging | Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Income before income taxes | (2,663) | 1,541 |
Income Tax Expense (Benefit) | 616 | (375) |
Net income | (2,047) | 1,166 |
Cash Flow Hedging | Reclassification out of Accumulated Other Comprehensive Income | Interest Rate Swap | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Interest expense | (713) | (713) |
Cash Flow Hedging | Reclassification out of Accumulated Other Comprehensive Income | Commodity Contract | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Fuel, purchased power and cost of natural gas sold | (1,950) | 2,254 |
Accumulated Defined Benefit Plans Adjustment, Net Unamortized Gain (Loss) | Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Operations and maintenance | (44) | (188) |
Accumulated Defined Benefit Plans Adjustment | Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Income before income taxes | (44) | (164) |
Income Tax Expense (Benefit) | 16 | 39 |
Net income | $ (28) | $ (125) |
Other Comprehensive Income_ Acc
Other Comprehensive Income: Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Period Start | $ (15,567) | $ (20,084) |
Accumulated Other Comprehensive Income (Loss), Net of Tax, Period End | (14,347) | (20,078) |
Accumulated Defined Benefit Plans Adjustment | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Period Start | (6,112) | (11,176) |
Other comprehensive income (loss), before reclassifications | 0 | 0 |
Amounts reclassified from AOCI | 28 | 125 |
Accumulated Other Comprehensive Income (Loss), Net of Tax, Period End | (6,084) | (11,051) |
Accumulated Other Comprehensive Income (Loss) | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive income (loss), before reclassifications | (855) | 1,047 |
Accumulated Other Comprehensive Income (Loss) | Reclassification out of Accumulated Other Comprehensive Income | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Amounts reclassified from AOCI | 2,075 | (1,041) |
Interest Rate Swap | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Period Start | (8,255) | (10,384) |
Other comprehensive income (loss), before reclassifications | 0 | 0 |
Amounts reclassified from AOCI | 563 | 536 |
Accumulated Other Comprehensive Income (Loss), Net of Tax, Period End | (7,692) | (9,848) |
Commodity Contract | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Period Start | (1,200) | 1,476 |
Other comprehensive income (loss), before reclassifications | (855) | 1,047 |
Amounts reclassified from AOCI | 1,484 | (1,702) |
Accumulated Other Comprehensive Income (Loss), Net of Tax, Period End | $ (571) | $ 821 |
Employee Benefit Plans_ Plan Co
Employee Benefit Plans: Plan Contributions (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Defined Benefit Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Estimated Future Employer Contributions in Next Fiscal Year | $ 0 |
Payment for Pension Benefits | 0 |
Estimated Future Employer Contributions in Current Fiscal Year | 0 |
Other Postretirement Benefits Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Estimated Future Employer Contributions in Next Fiscal Year | 4,556 |
Payment for Pension Benefits | 1,230 |
Estimated Future Employer Contributions in Current Fiscal Year | 3,690 |
Supplemental Non-Qualified Defined Benefit Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Estimated Future Employer Contributions in Next Fiscal Year | 2,410 |
Payment for Pension Benefits | 558 |
Estimated Future Employer Contributions in Current Fiscal Year | $ 1,673 |
Employee Benefit Plans_ Compone
Employee Benefit Plans: Components of Net Periodic Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service Cost | $ 614 | $ 982 |
Interest cost | 4,381 | 2,705 |
Expected return on assets | (4,672) | (4,631) |
Net amortization of prior service cost | (17) | (17) |
Recognized net actuarial loss (gain) | 498 | 1,523 |
Net periodic expense (benefit) | 804 | 562 |
Supplemental Employee Retirement Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service Cost | 914 | (392) |
Interest cost | 369 | 208 |
Expected return on assets | 0 | 0 |
Net amortization of prior service cost | 0 | 0 |
Recognized net actuarial loss (gain) | 8 | 69 |
Net periodic expense (benefit) | 1,291 | (115) |
Other Postretirement Benefits Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service Cost | 381 | 492 |
Interest cost | 594 | 321 |
Expected return on assets | (56) | (31) |
Net amortization of prior service cost | 10 | (72) |
Recognized net actuarial loss (gain) | (3) | 16 |
Net periodic expense (benefit) | $ 926 | $ 726 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Line Items] | ||
Income Tax Expense (Benefit) | $ 14,673 | $ 14,488 |
Effective Tax Rate | 11.10% | 10.70% |
Share-based Compensation Plans_
Share-based Compensation Plans: Compensation Related Costs, Share Based Payments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||
Stock compensation | $ 1,784 | $ 3,638 |
Business Segment Information_ I
Business Segment Information: Information Relating to Segments Statement of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information | ||
Revenue from contracts with customers | $ 912,055 | $ 821,769 |
Revenue | 921,159 | 823,570 |
Fuel, purchased power and cost of natural gas sold | 526,267 | 436,926 |
Depreciation, depletion and amortization | 61,643 | 60,463 |
Operating income (loss) | 174,883 | 173,353 |
Interest expense, net | (43,504) | (38,545) |
Other income, net | 674 | 704 |
Income tax (expense) | (14,673) | (14,488) |
Net income | 117,380 | 121,024 |
Net income attributable to non-controlling interest | (3,296) | (3,498) |
Net income available for common stock | 114,084 | 117,526 |
Electric Utilities | ||
Segment Reporting Information | ||
Revenue from contracts with customers | 217,829 | 205,668 |
Revenue | 218,709 | 206,538 |
Operating income (loss) | 61,060 | 50,746 |
Gas Utilities | ||
Segment Reporting Information | ||
Revenue from contracts with customers | 698,692 | 620,349 |
Revenue | 706,916 | 621,392 |
Operating income (loss) | 114,625 | 123,540 |
Corporate, Non-Segment | ||
Segment Reporting Information | ||
Operating income (loss) | (802) | (933) |
Intercompany Eliminations | ||
Segment Reporting Information | ||
Revenue from contracts with customers | (4,466) | (4,248) |
Revenue | (4,466) | (4,360) |
Other revenues | ||
Segment Reporting Information | ||
Revenue | 9,104 | 1,801 |
Other revenues | Electric Utilities | ||
Segment Reporting Information | ||
Revenue | 880 | 870 |
Other revenues | Gas Utilities | ||
Segment Reporting Information | ||
Revenue | 8,224 | 1,043 |
Other revenues | Intercompany Eliminations | ||
Segment Reporting Information | ||
Revenue | 0 | (112) |
External Customers | ||
Segment Reporting Information | ||
Revenue from contracts with customers | 912,055 | 821,769 |
External Customers | Electric Utilities | ||
Segment Reporting Information | ||
Revenue from contracts with customers | 215,012 | 202,739 |
External Customers | Gas Utilities | ||
Segment Reporting Information | ||
Revenue from contracts with customers | 697,043 | 619,030 |
External Customers | Other revenues | ||
Segment Reporting Information | ||
Revenue | 9,104 | 1,801 |
External Customers | Other revenues | Electric Utilities | ||
Segment Reporting Information | ||
Revenue | 881 | 870 |
External Customers | Other revenues | Gas Utilities | ||
Segment Reporting Information | ||
Revenue | 8,223 | 931 |
Intercompany Customers | ||
Segment Reporting Information | ||
Revenue from contracts with customers | 0 | 0 |
Intercompany Customers | Electric Utilities | ||
Segment Reporting Information | ||
Revenue from contracts with customers | 2,816 | 2,929 |
Intercompany Customers | Gas Utilities | ||
Segment Reporting Information | ||
Revenue from contracts with customers | 1,650 | 1,319 |
Intercompany Customers | Intercompany Eliminations | ||
Segment Reporting Information | ||
Revenue from contracts with customers | (4,466) | (4,248) |
Intercompany Customers | Other revenues | ||
Segment Reporting Information | ||
Revenue | 0 | 0 |
Intercompany Customers | Other revenues | Electric Utilities | ||
Segment Reporting Information | ||
Revenue | 0 | 0 |
Intercompany Customers | Other revenues | Gas Utilities | ||
Segment Reporting Information | ||
Revenue | 0 | 112 |
Intercompany Customers | Other revenues | Intercompany Eliminations | ||
Segment Reporting Information | ||
Revenue | $ 0 | $ (112) |
Business Segment Information_ S
Business Segment Information: Segment Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Segment Reporting, Asset Reconciling Item | ||
Total Assets | $ 9,460,136 | $ 9,618,230 |
Corporate and Other | ||
Segment Reporting, Asset Reconciling Item | ||
Total Assets | 118,424 | 110,227 |
Electric Utilities | ||
Segment Reporting, Asset Reconciling Item | ||
Total Assets | 3,922,496 | 3,929,721 |
Gas Utilities | ||
Segment Reporting, Asset Reconciling Item | ||
Total Assets | $ 5,419,216 | $ 5,578,282 |
Selected Balance Sheet Inform_3
Selected Balance Sheet Information: Accounts Receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Selected Balance Sheet Information [Abstract] | ||||
Billed Accounts Receivable | $ 327,949 | $ 267,571 | ||
Unbilled Revenue | 154,571 | 243,574 | ||
Less: Allowance for Credit Losses | (5,431) | (2,953) | $ (4,486) | $ (2,113) |
Account Receivable, net | $ 477,089 | $ 508,192 |
Selected Balance Sheet Inform_4
Selected Balance Sheet Information: Changes to Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Selected Balance Sheet Information [Abstract] | ||
Balance at Beginning of Year | $ 2,953 | $ 2,113 |
Additions Charged to Costs and Expenses | 3,703 | 3,416 |
Recoveries and Other Additions | 641 | 655 |
Write-offs and Other Deductions | (1,866) | (1,698) |
Balance at End of Year | $ 5,431 | $ 4,486 |
Selected Balance Sheet Inform_5
Selected Balance Sheet Information: Materials, Supplies, and Fuel Schedule (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Selected Balance Sheet Information [Abstract] | ||
Materials and supplies | $ 102,328 | $ 99,734 |
Fuel - Electric Utilities | 6,808 | 3,115 |
Natural gas in storage | 20,824 | 104,572 |
Total materials, supplies and fuel | $ 129,960 | $ 207,421 |
Selected Balance Sheet Inform_6
Selected Balance Sheet Information: Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Selected Balance Sheet Information [Abstract] | ||
Accrued employee compensation, benefits and withholdings | $ 48,555 | $ 62,890 |
Accrued property taxes | 54,694 | 52,430 |
Customer deposits and prepayments | 42,124 | 47,655 |
Accrued interest | 47,928 | 33,798 |
Other (none of which is individually significant) | 35,560 | 46,684 |
Total accrued liabilities | $ 228,861 | $ 243,457 |