Document and Entity Information
Document and Entity Information Document - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 31, 2020 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
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 | |
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 | |
Title of 12(b) Security | Common stock of $1.00 par value | |
Trading Symbol | BKH | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 62,745,335 | |
Entity Central Index Key | 0001130464 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Statement [Abstract] | ||||
Revenues | $ 326,914 | $ 333,888 | $ 863,964 | $ 931,698 |
Operating expenses: | ||||
Fuel, purchased power and cost of natural gas sold | 71,629 | 90,200 | 259,508 | 339,942 |
Operations and maintenance | 117,308 | 124,950 | 242,774 | 248,534 |
Depreciation, depletion and amortization | 56,663 | 51,595 | 113,065 | 102,623 |
Taxes - property and production | 14,381 | 13,142 | 28,499 | 26,467 |
Total operating expenses | 259,981 | 279,887 | 643,846 | 717,566 |
Operating income | 66,933 | 54,001 | 220,118 | 214,132 |
Other income (expense): | ||||
Interest expense incurred net of amounts capitalized (including amortization of debt issuance costs, premiums and discounts) | (35,765) | (34,660) | (71,546) | (69,676) |
Interest income | 220 | 396 | 548 | 695 |
Impairment of investment | 0 | 0 | (6,859) | 0 |
Other income (expense), net | (1,863) | 263 | 490 | (526) |
Total other income (expense) | (37,408) | (34,001) | (77,367) | (69,507) |
Income before income taxes | 29,525 | 20,000 | 142,751 | 144,625 |
Income tax (expense) | (4,831) | (2,307) | (20,833) | (19,570) |
Net income | 24,694 | 17,693 | 121,918 | 125,055 |
Net income attributable to noncontrolling interest | (3,728) | (3,110) | (7,778) | (6,664) |
Net income available for common stock | $ 20,966 | $ 14,583 | $ 114,140 | $ 118,391 |
Earnings per share of common stock: | ||||
Earnings (loss) per share, Basic (usd per share) | $ 0.34 | $ 0.24 | $ 1.84 | $ 1.97 |
Earnings (loss) per share, Diluted (usd per share) | $ 0.33 | $ 0.24 | $ 1.83 | $ 1.96 |
Weighted Average Number of Shares Outstanding, Basic and Diluted [Abstract] | ||||
Basic (in shares) | 62,573 | 60,467 | 62,175 | 60,195 |
Diluted (in shares) | 62,617 | 60,606 | 62,230 | 60,333 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Net income | $ 24,694 | $ 17,693 | $ 121,918 | $ 125,055 |
Other comprehensive income (loss), net of tax: | ||||
Benefit plan liability adjustments - net gain (net of tax of $0,$0, $(17) and $0, respectively) | 0 | 0 | 55 | 0 |
Reclassification adjustments of benefit plan liability - prior service cost (net of tax of $6, $5, $13 and $10, respectively) | (19) | (15) | (42) | (29) |
Reclassification adjustments of benefit plan liability - net gain (net of tax of $(182), $(52), $(277) and $(105), respectively) | 415 | 169 | 917 | 336 |
Other comprehensive income, net of tax | 948 | 232 | 2,221 | 689 |
Comprehensive income | 25,642 | 17,925 | 124,139 | 125,744 |
Net Income (Loss) Attributable to Noncontrolling Interest | 3,728 | 3,110 | 7,778 | 6,664 |
Comprehensive income available for common stock | 21,914 | 14,815 | 116,361 | 119,080 |
Benefit plan liability adjustments - net gain (loss) (tax) benefit | 0 | 0 | (17) | 0 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, Tax | 6 | 5 | 13 | 10 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, Tax | (182) | (52) | (277) | (105) |
Interest rate swaps | ||||
Other comprehensive income (loss), net of tax: | ||||
Reclassification of net realized (gains) losses | 543 | 541 | 1,086 | 1,091 |
Reclassification of net realized gains/losses, (tax) benefit | (170) | (172) | (340) | (335) |
Commodity Contract | ||||
Other comprehensive income (loss), net of tax: | ||||
Reclassification of net realized (gains) losses | 54 | (64) | 425 | (490) |
Net unrealized gains (losses) on commodity derivatives (net of tax of $14, $119, $68 and $65, respectively) | (45) | (399) | (220) | (219) |
Reclassification of net realized gains/losses, (tax) benefit | (16) | 19 | (131) | 147 |
Net unrealized gains/losses on commodity derivatives, (tax) benefit | $ 14 | $ 119 | $ 68 | $ 65 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 31,608 | $ 9,777 |
Restricted cash and equivalents | 4,105 | 3,881 |
Accounts receivable, net | 170,980 | 255,805 |
Materials, supplies and fuel | 105,987 | 117,172 |
Derivative assets, current | 1,581 | 342 |
Income tax receivable, net | 20,118 | 16,446 |
Regulatory assets, current | 51,745 | 43,282 |
Other current assets | 27,981 | 26,479 |
Total current assets | 414,105 | 473,184 |
Investments | 15,438 | 21,929 |
Property, plant and equipment | 6,954,274 | 6,784,679 |
Less: accumulated depreciation and depletion | (1,251,075) | (1,281,493) |
Total property, plant and equipment, net | 5,703,199 | 5,503,186 |
Other assets: | ||
Goodwill | 1,299,454 | 1,299,454 |
Intangible assets, net | 12,536 | 13,266 |
Regulatory assets, non-current | 220,567 | 228,062 |
Other assets, non-current | 24,633 | 19,376 |
Total other assets, non-current | 1,557,190 | 1,560,158 |
TOTAL ASSETS | 7,689,932 | 7,558,457 |
Current liabilities: | ||
Accounts payable | 118,942 | 193,523 |
Accrued liabilities | 201,667 | 226,767 |
Derivative liabilities, current | 621 | 2,254 |
Regulatory liabilities, current | 59,428 | 33,507 |
Notes payable | 0 | 349,500 |
Current maturities of long-term debt | 4,307 | 5,743 |
Total current liabilities | 384,965 | 811,294 |
Long-term debt, net of current maturities | 3,532,887 | 3,140,096 |
Deferred credits and other liabilities: | ||
Deferred income tax liabilities, net | 388,962 | 360,719 |
Regulatory liabilities, non-current | 506,393 | 503,145 |
Benefit plan liabilities | 142,580 | 154,472 |
Other deferred credits and other liabilities | 119,649 | 124,662 |
Total deferred credits and other liabilities | 1,157,584 | 1,142,998 |
Commitments and contingencies (See Notes 7, 9, 12, 13) | ||
Equity: | ||
Common stock $1 par value; 100,000,000 shares authorized; issued 62,772,996 and 61,480,658 shares, respectively | 62,773 | 61,481 |
Additional paid-in capital | 1,654,563 | 1,552,788 |
Retained earnings | 826,269 | 778,776 |
Treasury stock, at cost – 26,399 and 3,956 shares, respectively | (1,879) | (267) |
Accumulated other comprehensive income (loss) | (28,434) | (30,655) |
Total stockholders’ equity | 2,513,292 | 2,362,123 |
Noncontrolling interest | 101,204 | 101,946 |
Total equity | 2,614,496 | 2,464,069 |
TOTAL LIABILITIES AND TOTAL EQUITY | $ 7,689,932 | $ 7,558,457 |
Common Stock, Par Value (usd per share) | $ 1 | $ 1 |
Common Stock Authorized (in shares) | 100,000,000 | 100,000,000 |
Common Stock Issued (in shares) | 62,772,996 | 61,480,658 |
Treasury Stock (in shares) | 26,399 | 3,956 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Operating activities: | ||
Net income | $ 121,918 | $ 125,055 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, depletion and amortization | 113,065 | 102,623 |
Deferred financing cost amortization | 4,246 | 4,219 |
Impairment of investment | 6,859 | 0 |
Stock compensation | 1,113 | 7,093 |
Deferred income taxes | 26,401 | 21,935 |
Employee benefit plans | 5,656 | 5,683 |
Other adjustments, net | 3,679 | 8,991 |
Changes in certain operating assets and liabilities: | ||
Materials, supplies and fuel | 7,503 | 14,911 |
Accounts receivable and other current assets | 73,302 | 99,925 |
Accounts payable and other current liabilities | (63,085) | (107,563) |
Regulatory assets - current | 21,887 | 16,116 |
Regulatory liabilities - current | 314 | (6,348) |
Payment for Pension Benefits | (12,700) | 0 |
Other operating activities, net | (1,152) | (2,861) |
Net cash provided by operating activities | 309,006 | 289,779 |
Investing activities: | ||
Property, plant and equipment additions | (348,313) | (317,686) |
Other investing activities | (1,412) | 389 |
Net cash (used in) investing activities | (349,725) | (317,297) |
Financing activities: | ||
Dividends paid on common stock | (66,440) | (60,952) |
Common stock issued | 99,435 | 71,759 |
Net (payments) borrowings of short-term debt | (349,500) | (83,120) |
Long-term debt - issuances | 400,000 | 400,000 |
Long-term debt - repayments | (5,727) | (302,871) |
Distributions to noncontrolling interest | (8,520) | (9,251) |
Other financing activities | (6,474) | (1,948) |
Net cash provided by financing activities | 62,774 | 13,617 |
Net change in cash, restricted cash and cash equivalents | 22,055 | (13,901) |
Cash, restricted cash and cash equivalents at beginning of period | 13,658 | 24,145 |
Cash, restricted cash and cash equivalents at end of period | 35,713 | 10,244 |
Supplemental Cash Flow Information [Abstract] | ||
Interest (net of amounts capitalized) | (67,449) | (67,624) |
Income taxes | 1,896 | 1,790 |
Accrued property, plant and equipment purchases at June 30 | $ 59,916 | $ 83,486 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements Of Equity (unaudited) - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption Adjustment | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (loss) | Noncontrolling Interest |
Common Stock, Shares, Outstanding at Dec. 31, 2018 | 60,048,567 | 44,253 | ||||||
Total equity at Dec. 31, 2018 | $ 2,287,423 | $ 60,049 | $ (2,510) | $ 1,450,569 | $ 700,396 | $ (26,916) | $ 105,835 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 107,362 | 103,808 | 3,554 | |||||
Other comprehensive income (loss), net of tax | 457 | 457 | ||||||
Dividends on Common Stock | (30,332) | (30,332) | ||||||
Share-based compensation, shares | 48,956 | (20,497) | ||||||
Share-based compensation | 538 | $ 49 | $ 1,078 | (589) | ||||
Issuance of common stock, shares | 280,497 | |||||||
Issuance of common stock | 19,999 | $ 280 | 19,719 | |||||
Issuance costs | (289) | (289) | ||||||
Distributions to noncontrolling interest | (4,846) | (4,846) | ||||||
Common Stock, Shares, Outstanding at Mar. 31, 2019 | 60,378,020 | 23,756 | ||||||
Total equity at Mar. 31, 2019 | $ 2,383,702 | $ 3,390 | $ 60,378 | $ (1,432) | 1,469,410 | 777,262 | (26,459) | 104,543 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.505 | |||||||
Common Stock, Shares, Outstanding at Dec. 31, 2018 | 60,048,567 | 44,253 | ||||||
Total equity at Dec. 31, 2018 | $ 2,287,423 | $ 60,049 | $ (2,510) | 1,450,569 | 700,396 | (26,916) | 105,835 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 125,055 | |||||||
Other comprehensive income (loss), net of tax | 689 | |||||||
Issuance costs | $ (700) | |||||||
Common Stock, Shares, Outstanding at Jun. 30, 2019 | 61,091,385 | 25,359 | ||||||
Total equity at Jun. 30, 2019 | 2,419,998 | (3) | $ 61,091 | $ (1,544) | 1,522,208 | 761,222 | (26,227) | 103,248 |
Common Stock, Shares, Outstanding at Mar. 31, 2019 | 60,378,020 | 23,756 | ||||||
Total equity at Mar. 31, 2019 | 2,383,702 | 3,390 | $ 60,378 | $ (1,432) | 1,469,410 | 777,262 | (26,459) | 104,543 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 17,693 | 14,583 | 3,110 | |||||
Other comprehensive income (loss), net of tax | 232 | 232 | ||||||
Dividends on Common Stock | (30,620) | (30,620) | ||||||
Share-based compensation, shares | 54,767 | 1,603 | ||||||
Share-based compensation | 3,890 | $ 54 | $ (112) | 3,948 | ||||
Issuance of common stock, shares | 658,598 | |||||||
Issuance of common stock | 50,001 | $ 659 | 49,342 | |||||
Issuance costs | (492) | $ (500) | (492) | |||||
Distributions to noncontrolling interest | (4,405) | (4,405) | ||||||
Common Stock, Shares, Outstanding at Jun. 30, 2019 | 61,091,385 | 25,359 | ||||||
Total equity at Jun. 30, 2019 | $ 2,419,998 | (3) | $ 61,091 | $ (1,544) | 1,522,208 | 761,222 | (26,227) | 103,248 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.505 | |||||||
Common Stock, Shares, Outstanding at Dec. 31, 2019 | 61,480,658 | 3,956 | ||||||
Total equity at Dec. 31, 2019 | $ 2,464,069 | $ 61,481 | $ (267) | 1,552,788 | 778,776 | (30,655) | 101,946 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 97,224 | 93,174 | 4,050 | |||||
Other comprehensive income (loss), net of tax | 1,273 | 1,273 | ||||||
Dividends on Common Stock | (32,902) | (32,902) | ||||||
Share-based compensation, shares | 69,378 | 20,700 | ||||||
Share-based compensation | 674 | $ 69 | $ (1,658) | 2,263 | ||||
Issuance of common stock, shares | 1,222,942 | |||||||
Issuance of common stock | 100,000 | $ 1,223 | 98,777 | |||||
Issuance costs | (967) | (967) | ||||||
Distributions to noncontrolling interest | (4,741) | (4,741) | ||||||
Common Stock, Shares, Outstanding at Mar. 31, 2020 | 62,772,978 | 24,656 | ||||||
Total equity at Mar. 31, 2020 | $ 2,624,423 | (207) | $ 62,773 | $ (1,925) | 1,652,861 | 838,841 | (29,382) | 101,255 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.535 | |||||||
Common Stock, Shares, Outstanding at Dec. 31, 2019 | 61,480,658 | 3,956 | ||||||
Total equity at Dec. 31, 2019 | $ 2,464,069 | $ 61,481 | $ (267) | 1,552,788 | 778,776 | (30,655) | 101,946 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 121,918 | |||||||
Other comprehensive income (loss), net of tax | 2,221 | |||||||
Common Stock, Shares, Outstanding at Jun. 30, 2020 | 62,772,996 | 26,399 | ||||||
Total equity at Jun. 30, 2020 | 2,614,496 | $ 62,773 | $ (1,879) | 1,654,563 | 826,269 | (28,434) | 101,204 | |
Common Stock, Shares, Outstanding at Mar. 31, 2020 | 62,772,978 | 24,656 | ||||||
Total equity at Mar. 31, 2020 | 2,624,423 | $ (207) | $ 62,773 | $ (1,925) | 1,652,861 | 838,841 | (29,382) | 101,255 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 24,694 | 20,966 | 3,728 | |||||
Other comprehensive income (loss), net of tax | 948 | 948 | ||||||
Dividends on Common Stock | (33,538) | (33,538) | ||||||
Share-based compensation, shares | 18 | 1,743 | ||||||
Share-based compensation | 1,827 | $ 46 | 1,781 | |||||
Issuance costs | (79) | (79) | ||||||
Distributions to noncontrolling interest | (3,779) | (3,779) | ||||||
Common Stock, Shares, Outstanding at Jun. 30, 2020 | 62,772,996 | 26,399 | ||||||
Total equity at Jun. 30, 2020 | $ 2,614,496 | $ 62,773 | $ (1,879) | $ 1,654,563 | $ 826,269 | $ (28,434) | $ 101,204 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.535 |
Management's Statement_
Management's Statement: | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Management's Statement | Management’s Statement The unaudited Condensed 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 GAAP have been condensed or omitted pursuant to such rules and regulations; however, we believe that the footnotes adequately disclose the information presented. These Condensed Consolidated Financial Statements should be read in conjunction with the consolidated financial statements and the notes included in our 2019 Annual Report on Form 10-K filed with the SEC. Segment Reporting We conduct our operations through the following reportable segments: Electric Utilities, Gas Utilities, Power Generation and Mining. Our reportable segments are based on our method of internal reporting, which is generally segregated by differences in products, services and regulation. All of our operations and assets are located within the United States. Use of Estimates and Basis of Presentation The information furnished in the accompanying Condensed 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 June 30, 2020, December 31, 2019 and June 30, 2019 financial information. Certain industries in which we operate are highly seasonal and revenue from, and certain expenses for, such operations may fluctuate significantly among quarterly periods. Demand for electricity and natural gas is sensitive to seasonal cooling, heating and industrial load requirements. In particular, the normal peak usage season for electric utilities is June through August while the normal peak usage season for gas utilities is November through March. Significant earnings variances can be expected between the Gas Utilities segment’s peak and off-peak seasons. Due to this seasonal nature, our results of operations for the three and six months ended June 30, 2020 and June 30, 2019, and our financial condition as of June 30, 2020 and December 31, 2019 are not necessarily indicative of the results of operations and financial condition to be expected for any other period. All earnings per share amounts discussed refer to diluted earnings per share unless otherwise noted. Reclassification We changed certain classifications of operating expenses on the Condensed Consolidated Statements of Income for the three and six months ended June 30, 2019 to conform with current year presentation. The prior year reclassifications, which are shown in the table below, did not impact previously reported operating income or net income. Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 (in millions) Fuel, purchased power and cost of natural gas sold $ 0.4 $ 1.3 Operations and maintenance — (0.3) Taxes - property and production — (0.2) Other operating expenses (0.4) (0.8) $ — $ — COVID-19 Pandemic In March 2020, the World Health Organization categorized COVID-19 as a pandemic and the President of the United States declared the outbreak a national emergency. The U.S. government has deemed electric and natural gas utilities to be critical infrastructure sectors that provide essential services during this emergency. As a provider of essential services, the Company has an obligation to provide services to our customers. The Company remains focused on protecting the health of its employees and the communities in which it operates while assuring the continuity of its business operations. The Company’s Condensed Consolidated Financial Statements reflect estimates and assumptions made by management that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Condensed Consolidated Financial Statements and reported amounts of revenue and expenses during the reporting periods presented. The Company considered the impacts of COVID-19 on the assumptions and estimates used and determined that for the three and six months ended June 30, 2020, there were no material adverse impacts on the Company’s results of operations. Change in Accounting Principle - Pension Accounting Asset Method Effective January 1, 2020, we changed our method of accounting for net periodic benefit cost. Prior to the change, the Company used a calculated value for determining market-related value of plan assets which amortized the effects of gains and losses over a five-year period. Effective with the accounting change, the Company will use a calculated value for the return-seeking assets (equities) in the portfolio and change to fair value for the liability-hedging assets (fixed income). See Note 12 for additional information. Recently Issued Accounting Standards Simplifying the Accounting for Income Taxes, ASU 2019-12 In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes, as part of its overall simplification initiative to reduce costs and complexity in applying accounting standards while maintaining or improving the usefulness of the information provided to users of the financial statements. Amendments include removal of certain exceptions to the general principles of ASC 740, Income Taxes , and simplification in several other areas such as accounting for a franchise tax (or similar tax) that is partially based on income. The new guidance is effective for interim and annual periods beginning after December 15, 2020 with early adoption permitted. We are currently reviewing this standard to assess the impact on our financial position, results of operations and cash flows. Recently Adopted Accounting Standards Financial Instruments -- Credit Losses: Measurement of Credit Losses on Financial Instruments, ASU 2016-13 In June 2016, the FASB issued ASU 2016-13, Financial Instruments -- Credit Losses: Measurement of Credit Losses on Financial Instruments, which was subsequently amended by ASUs 2018-19, 2019-04, 2019-05, 2019-10, and 2019-11. The standard introduces new accounting guidance for credit losses on financial instruments within its scope, including trade receivables. This new guidance adds an impairment model that is based on expected losses rather than incurred losses. We adopted this standard on January 1, 2020 with prior year comparative financial information remaining as previously reported when transitioning to the new standard. On January 1, 2020, we recorded an increase to our allowance for credit losses, primarily associated with the inclusion of expected losses on unbilled revenue. The cumulative effect of the adoption, net of tax impact, was $0.2 million, which was recorded as an adjustment to retained earnings. Simplifying the Test for Goodwill Impairment, ASU 2017-04 In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment, by eliminating step 2 from the goodwill impairment test. Under the new guidance, if the carrying amount of a reporting unit exceeds its fair value, an impairment loss will be recognized in an amount equal to that excess, limited to the amount of goodwill allocated to that reporting unit. We adopted this standard prospectively on January 1, 2020. Adoption of this guidance, in conjunction with the annual goodwill impairment test as of October 1, 2020, is not expected to have an impact on our financial position, results of operations or cash flows. Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, ASU 2018-15 In August 2018, the FASB issued ASU 2018-15, Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract , which aligns the requirements for recording implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. As a result, certain categories of implementation costs that previously would have been charged to expense as incurred are now capitalized as prepayments and amortized over the term of the arrangement. We adopted this standard prospectively on January 1, 2020. Adoption of this guidance did not have a material impact on our financial position, results of operations or cash flows. |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Our revenue contracts generally provide for performance obligations that: are fulfilled and transfer control to customers over time; represent a series of distinct services that are substantially the same; involve the same pattern of transfer to the customer; and provide a right to consideration from our customers in an amount that corresponds directly with the value to the customer for the performance completed to date. Therefore, we recognize revenue in the amount to which we have a right to invoice. 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 reporting segments for the three and six months ended June 30, 2020 and 2019. Sales tax and other similar taxes are excluded from revenues. Three Months Ended June 30, 2020 Electric Utilities Gas Utilities Power Generation Mining Inter-company Revenues Total Customer types: (in thousands) Retail $ 141,804 $ 120,594 $ — $ 14,846 $ (7,916) $ 269,328 Transportation — 30,792 — — (138) 30,654 Wholesale 3,470 — 25,718 — (24,476) 4,712 Market - off-system sales 3,538 23 — — (1,580) 1,981 Transmission/Other 12,761 9,189 — — (4,432) 17,518 Revenue from contracts with customers $ 161,573 $ 160,598 $ 25,718 $ 14,846 $ (38,542) $ 324,193 Other revenues 1,627 512 404 570 (392) 2,721 Total revenues $ 163,200 $ 161,110 $ 26,122 $ 15,416 $ (38,934) $ 326,914 Timing of revenue recognition: Services transferred at a point in time $ — $ — $ — $ 14,846 $ (7,916) $ 6,930 Services transferred over time 161,573 160,598 25,718 — (30,626) 317,263 Revenue from contracts with customers $ 161,573 $ 160,598 $ 25,718 $ 14,846 $ (38,542) $ 324,193 Three Months Ended June 30, 2019 Electric Utilities Gas Utilities Power Generation Mining Inter-company Revenues Total Customer Types: Retail $ 139,732 $ 123,630 $ — $ 12,428 $ (7,041) $ 268,749 Transportation — 28,623 — — (276) 28,347 Wholesale 6,781 — 15,062 — (13,296) 8,547 Market - off-system sales 3,448 161 — — (1,335) 2,274 Transmission/Other 14,416 11,612 — — (4,199) 21,829 Revenue from contracts with customers $ 164,377 $ 164,026 $ 15,062 $ 12,428 $ (26,147) $ 329,746 Other revenues 1,977 1,443 9,646 617 (9,541) 4,142 Total Revenues $ 166,354 $ 165,469 $ 24,708 $ 13,045 $ (35,688) $ 333,888 Timing of Revenue Recognition: Services transferred at a point in time $ — $ — $ — $ 12,428 $ (7,041) $ 5,387 Services transferred over time 164,377 164,026 15,062 — (19,106) 324,359 Revenue from contracts with customers $ 164,377 $ 164,026 $ 15,062 $ 12,428 $ (26,147) $ 329,746 Six Months Ended June 30, 2020 Electric Utilities Gas Utilities Power Generation Mining Inter-company Revenues Total Customer types: (in thousands) Retail $ 290,444 $ 418,841 $ — $ 29,249 $ (15,755) $ 722,779 Transportation — 74,900 — — (277) 74,623 Wholesale 9,022 — 51,185 — (48,088) 12,119 Market - off-system sales 8,405 161 — — (4,219) 4,347 Transmission/Other 27,618 21,761 — — (8,845) 40,534 Revenue from contracts with customers $ 335,489 $ 515,663 $ 51,185 $ 29,249 $ (77,184) $ 854,402 Other revenues 1,850 6,220 903 1,372 (783) 9,562 Total revenues $ 337,339 $ 521,883 $ 52,088 $ 30,621 $ (77,967) $ 863,964 Timing of revenue recognition: Services transferred at a point in time $ — $ — $ — $ 29,249 $ (15,755) $ 13,494 Services transferred over time 335,489 515,663 51,185 — (61,429) 840,908 Revenue from contracts with customers $ 335,489 $ 515,663 $ 51,185 $ 29,249 $ (77,184) $ 854,402 Six Months Ended June 30, 2019 Electric Utilities Gas Utilities Power Generation Mining Inter-company Revenues Total Customer Types: Retail $ 293,195 $ 477,905 $ — $ 28,257 $ (15,169) $ 784,188 Transportation — 73,140 — — (708) 72,432 Wholesale 15,124 — 30,531 — (26,509) 19,146 Market - off-system sales 10,140 378 — — (3,559) 6,959 Transmission/Other 28,591 24,802 — — (8,402) 44,991 Revenue from contracts with customers $ 347,050 $ 576,225 $ 30,531 $ 28,257 $ (54,347) $ 927,716 Other revenues 2,231 324 19,422 1,217 (19,212) 3,982 Total Revenues $ 349,281 $ 576,549 $ 49,953 $ 29,474 $ (73,559) $ 931,698 Timing of Revenue Recognition: Services transferred at a point in time $ — $ — $ — $ 28,257 $ (15,169) $ 13,088 Services transferred over time 347,050 576,225 30,531 — (39,178) 914,628 Revenue from contracts with customers $ 347,050 $ 576,225 $ 30,531 $ 28,257 $ (54,347) $ 927,716 Contract Balances The nature of our primary revenue contracts provides an unconditional right to consideration upon service delivery; therefore, no customer contract assets or liabilities exist. The unconditional right to consideration is represented by the balance in our Accounts Receivable further discussed in Note 4 . |
Business Segment Information_
Business Segment Information: | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting Information, Additional Information [Abstract] | |
Business Segment Information | Business Segment Information Our reportable segments are based on our method of internal reporting, which is generally segregated by differences in products, services and regulation. All of our operations and assets are located within the United States. Segment and Corporate and Other information is as follows (in thousands): Three Months Ended June 30, 2020 External Operating Inter-company Operating Revenue Total Revenues Contract Customers Other Revenues Contract Customers Other Revenues Segment: Electric Utilities $ 156,197 $ 1,627 $ 5,376 $ — $ 163,200 Gas Utilities 159,824 512 774 — 161,110 Power Generation 1,242 349 24,476 55 26,122 Mining 6,930 233 7,916 337 15,416 Inter-company eliminations — — (38,542) (392) (38,934) Total $ 324,193 $ 2,721 $ — $ — $ 326,914 Three Months Ended June 30, 2019 External Operating Revenue Inter-company Operating Revenue Total Revenues Contract Customers Other Revenues Contract Customers Other Revenues Segment: Electric Utilities $ 159,140 $ 1,977 $ 5,237 $ — $ 166,354 Gas Utilities 163,303 1,443 723 — 165,469 Power Generation 1,765 434 13,297 9,212 24,708 Mining 5,538 288 6,890 329 13,045 Inter-company eliminations — — (26,147) (9,541) (35,688) Total $ 329,746 $ 4,142 $ — $ — $ 333,888 Six Months Ended June 30, 2020 External Operating Revenue Inter-company Operating Revenue Total Revenues Contract Customers Other Revenues Contract Customers Other Revenues Segment: Electric Utilities $ 323,700 $ 1,850 $ 11,789 $ — $ 337,339 Gas Utilities 514,111 6,220 1,552 — 521,883 Power Generation 3,097 792 48,088 111 52,088 Mining 13,494 700 15,755 672 30,621 Inter-company eliminations — — (77,184) (783) (77,967) Total $ 854,402 $ 9,562 $ — $ — $ 863,964 Six Months Ended June 30, 2019 External Operating Revenue Inter-company Operating Revenue Total Revenues Contract Customers Other Revenues Contract Customers Other Revenues Segment: Electric Utilities $ 335,803 $ 2,231 $ 11,247 $ — $ 349,281 Gas Utilities 574,803 324 1,422 — 576,549 Power Generation 4,022 870 26,509 18,552 49,953 Mining 13,088 557 15,169 660 29,474 Inter-company eliminations — — (54,347) (19,212) (73,559) Total $ 927,716 $ 3,982 $ — $ — $ 931,698 Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Adjusted operating income (a) : Electric Utilities $ 33,993 $ 33,546 $ 69,643 $ 74,566 Gas Utilities 18,209 8,557 121,106 111,871 Power Generation 11,402 10,156 22,751 22,123 Mining 3,358 1,640 6,487 5,977 Corporate and Other (29) 102 131 (405) Operating income 66,933 54,001 220,118 214,132 Interest expense, net (35,545) (34,264) (70,998) (68,981) Impairment of investment — — (6,859) — Other income (expense), net (1,863) 263 490 (526) Income tax (expense) (4,831) (2,307) (20,833) (19,570) Net income 24,694 17,693 121,918 125,055 Net income attributable to noncontrolling interest (3,728) (3,110) (7,778) (6,664) Net income available for common stock $ 20,966 $ 14,583 $ 114,140 $ 118,391 __________ (a) Adjusted operating income recognizes intersegment revenues and costs for Colorado Electric’s PPA with Black Hills Colorado IPP on an accrual basis rather than as a finance lease. This presentation of segment information does not impact consolidated financial results. Segment and Corporate and Other balances included in the accompanying Condensed Consolidated Balance Sheets were as follows (in thousands): Total assets (net of inter-company eliminations) as of: June 30, 2020 December 31, 2019 Segment: Electric Utilities $ 2,982,841 $ 2,900,983 Gas Utilities 4,052,860 4,032,339 Power Generation 407,107 417,715 Mining 79,774 77,175 Corporate and Other 167,350 130,245 Total assets $ 7,689,932 $ 7,558,457 |
Selected Balance Sheet Informat
Selected Balance Sheet Information: | 6 Months Ended |
Jun. 30, 2020 | |
Selected Balance Sheet Information [Abstract] | |
Selected Balance Sheet Information | Selected Balance Sheet Information Accounts Receivable and Allowance for Credit Losses Following is a summary of Accounts receivable, net included in the accompanying Condensed Consolidated Balance Sheets (in thousands) as of: June 30, 2020 December 31, 2019 Accounts receivable, trade $ 122,650 $ 144,747 Unbilled revenue 55,915 113,502 Less: Allowance for credit losses (7,585) (2,444) Accounts receivable, net $ 170,980 $ 255,805 Changes to allowance for credit losses for the six months ended June 30, 2020 and 2019, 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 June 30, 2020 $ 2,444 $ 6,715 $ 2,203 $ (3,777) $ 7,585 2019 $ 3,209 $ 4,913 $ 1,870 $ (4,906) $ 5,086 Due to the COVID-19 pandemic, all of our jurisdictions temporarily suspended disconnections for a period of time, which increased our accounts receivable arrears balances. As a result, we increased our allowance for credit losses and bad debt expense for the six months ended June 30, 2020 by $2.0 million. The ongoing credit evaluation of our customers during the COVID-19 pandemic is further discussed in the Credit Risk section of Note 9 . Materials, Supplies and Fuel The following amounts by major classification are included in Materials, supplies and fuel on the accompanying Condensed Consolidated Balance Sheets (in thousands) as of: June 30, 2020 December 31, 2019 Materials and supplies $ 92,284 $ 82,809 Fuel - Electric Utilities 3,574 2,425 Natural gas in storage 10,129 31,938 Total materials, supplies and fuel $ 105,987 $ 117,172 Accrued Liabilities The following amounts by major classification are included in Accrued liabilities on the accompanying Condensed Consolidated Balance Sheets (in thousands) as of: June 30, 2020 December 31, 2019 Accrued employee compensation, benefits and withholdings $ 59,701 $ 62,837 Accrued property taxes 36,832 44,547 Customer deposits and prepayments 45,143 54,728 Accrued interest 31,757 31,868 Other (none of which is individually significant) 28,234 32,787 Total accrued liabilities $ 201,667 $ 226,767 |
Regulatory Matters_
Regulatory Matters: | 6 Months Ended |
Jun. 30, 2020 | |
Regulatory Assets and Liabilities Disclosure [Abstract] | |
Regulatory Matters | Regulatory Matters We had the following regulatory assets and liabilities (in thousands) as of: June 30, 2020 December 31, 2019 Regulatory assets Deferred energy and fuel cost adjustments (a) $ 36,900 $ 34,088 Deferred gas cost adjustments (a) 226 1,540 Gas price derivatives (a) 662 3,328 Deferred taxes on AFUDC (b) 7,715 7,790 Employee benefit plans (c) 115,416 115,900 Environmental (a) 1,426 1,454 Loss on reacquired debt (a) 23,820 24,777 Renewable energy standard adjustment (a) 1 1,622 Deferred taxes on flow through accounting (c) 44,940 41,220 Decommissioning costs (b) 9,854 10,670 Gas supply contract termination (a) 5,521 8,485 Other regulatory assets (a) 25,831 20,470 Total regulatory assets 272,312 271,344 Less current regulatory assets (51,745) (43,282) Regulatory assets, non-current $ 220,567 $ 228,062 Regulatory liabilities Deferred energy and gas costs (a) $ 28,279 $ 17,278 Employee benefit plan costs and related deferred taxes (c) 41,025 43,349 Cost of removal (a) 168,137 166,727 Excess deferred income taxes (c) 288,796 285,438 TCJA revenue reserve 3,027 3,418 Other regulatory liabilities (c) 36,557 20,442 Total regulatory liabilities 565,821 536,652 Less current regulatory liabilities (59,428) (33,507) Regulatory liabilities, non-current $ 506,393 $ 503,145 __________ (a) Recovery of costs, but we are not allowed a rate of return. (b) In addition to recovery of costs, we are 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 13 of the Notes to the Consolidated Financial Statements in our 2019 Annual Report on Form 10-K. Nebraska Gas Jurisdictional Consolidation and Rate Review On June 1, 2020, Nebraska Gas filed a rate review with the NPSC to consolidate rates, tariffs, and services of its two existing gas distribution territories. The rate review requests $17 million in new revenue, as well as renewal and expansion of the SSIR, to recover investments in safety, reliability and system integrity. The rate review requests a capital structure of 50% equity and 50% debt and a return on equity of 10% for investments Nebraska Gas made in its natural gas pipeline system. Nebraska statute allows for implementation of interim rates 90 days after filing a rate review. New rates are expected to be effective in early 2021. Black Hills Wyoming and Wyoming Electric Wygen I FERC Filing On June 1, 2020, Black Hills Wyoming and Wyoming Electric filed a settlement agreement with the FERC. The agreement represents a resolution of all issues in the joint application filed with the FERC on August 2, 2019 for approval of a new 60 MW PPA. On July 10, 2020, a judge certified the settlement to the FERC and a decision is expected by the end of 2020. If approved, Wyoming Electric will continue to receive 60 MW of capacity and energy from the Wygen I power plant. The new agreement would commence on January 1, 2022, replacing the existing PPA, and would continue for 11 years. Colorado Gas Jurisdictional Consolidation and Rate Review On February 1, 2019, Colorado Gas filed a rate review with the CPUC requesting $2.5 million in new revenue to recover investments in safety, reliability and system integrity and approval to consolidate rates, tariffs, and services of its two existing gas distribution territories. Colorado Gas also requested a new rider mechanism to recover future safety and integrity investments in its system. On April 14, 2020 the CPUC deliberated on the application and on May 19, 2020 issued a final order. The order denied the system integrity recovery mechanism and consolidation of rate territories. In addition, the order resulted in an annual revenue decrease of $0.6 million and a return on equity of 9.2%. New rates were effective July 3, 2020. In accordance with the final order, Colorado Gas will file a new system integrity rider proposal prior to the end of 2020. Colorado Gas also plans to file a new rate review by the end of 2020. |
Earnings Per Share_
Earnings Per Share: | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share A reconciliation of share amounts used to compute earnings per share in the accompanying Condensed Consolidated Statements of Income was as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Net income available for common stock $ 20,966 $ 14,583 $ 114,140 $ 118,391 Weighted average shares - basic 62,573 60,467 62,175 60,195 Dilutive effect of: Equity compensation 44 139 55 138 Weighted average shares - diluted 62,617 60,606 62,230 60,333 Earnings per share of common stock: Earnings per share, Basic $ 0.34 $ 0.24 $ 1.84 $ 1.97 Earnings per share, Diluted $ 0.33 $ 0.24 $ 1.83 $ 1.96 The following securities were excluded from the diluted earnings per share computation because of their anti-dilutive nature (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Equity compensation 29 — 26 — Restricted stock 76 — 36 — Anti-dilutive shares 105 — 62 — |
Notes Payable, Current Maturiti
Notes Payable, Current Maturities and Debt: | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Notes Payable, Current Maturities and Debt | Notes Payable, Current Maturities and Debt We had the following short-term debt outstanding in the accompanying Condensed Consolidated Balance Sheets (in thousands) as of: June 30, 2020 December 31, 2019 Balance Outstanding Letters of Credit (a) Balance Outstanding Letters of Credit (a) Revolving Credit Facility $ — $ 11,999 $ — $ 30,274 CP Program — — 349,500 — Total $ — $ 11,999 $ 349,500 $ 30,274 _______________ (a) Letters of credit are off-balance sheet commitments that reduce the borrowing capacity available on our corporate Revolving Credit Facility. For the six months ended June 30, 2020, we utilized a combination of our $750 million Revolving Credit Facility and CP Program to meet our business needs and support our capital investment plan. Our net short-term borrowings (payments) during the six months ended June 30, 2020 were $(350) million. Debt Covenants Under our Revolving Credit Facility and term loan agreement, we are required to maintain a Consolidated Indebtedness to Capitalization Ratio not to exceed 0.65 to 1.00. Our Consolidated Indebtedness to Capitalization Ratio was calculated by dividing (i) consolidated indebtedness, which includes letters of credit and certain guarantees issued, by (ii) capital, which includes consolidated indebtedness plus consolidated net worth, which excludes noncontrolling interest in subsidiaries. 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. Our Revolving Credit Facility and term loans require compliance with the following financial covenant, which we were in compliance with at June 30, 2020: As of June 30, 2020 Covenant Requirement Consolidated Indebtedness to Capitalization Ratio 58.7% Less than 65% Debt Offering On June 17, 2020, we completed a public debt offering which consisted of $400 million of 2.50% 10-year senior unsecured notes due June 15, 2030. The proceeds were used to repay short-term debt and for working capital and general corporate purposes. South Dakota Electric Series 94A Debt On March 24, 2020, South Dakota Electric paid off its $2.9 million, Series 94A variable rate notes due June 1, 2024. These notes were tendered by the sole investor on March 17, 2020. |
Equity_
Equity: | 6 Months Ended |
Jun. 30, 2020 | |
Statement of Stockholders' Equity [Abstract] | |
Equity | Equity February 2020 Equity Issuance On February 27, 2020, we issued 1.2 million shares of common stock to a single investor through an underwritten registered transaction at a price of $81.77 per share for proceeds of $99 million, net of $1.0 million of issuance costs. The shares of common stock were offered pursuant to our shelf registration statement filed with the SEC. Shelf Registration, DRSPP and ATM Activity On August 3, 2020, we filed a shelf registration and DRSPP with the SEC. In conjunction with these shelf filings, we renewed the ATM. The renewed ATM program, which allows us to sell shares of our common stock, is the same as the prior program other than the aggregate value increased from $300 million to $400 million and a forward sales option was incorporated. Under the ATM, shares may be offered from time to time pursuant to a sales agreement dated August 3, 2020. Shares of common stock are offered pursuant to our shelf registration statement filed with the SEC. We did not issue any common shares under the ATM during the three and six months ended June 30, 2020. During the three months ended June 30, 2019, we issued a total of 0.7 million shares of common stock under the ATM for proceeds of $49 million, net of $0.5 million in issuance costs. During the six months ended June 30, 2019, we issued a total of 0.9 million shares of common stock under the ATM for proceeds of $69 million, net of $0.7 million in issuance costs. |
Risk Management and Derivatives
Risk Management and Derivatives: | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Risk Management and Derivatives | Risk Management and Derivatives Market and Credit Risk Disclosures Our activities in the regulated and non-regulated energy sectors 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. 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 to the following market risks, including, but not limited to: • Commodity price risk associated with our retail natural gas, 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 the COVID-19 pandemic, weather, market speculation, pipeline constraints, and other factors that may impact natural gas and electric energy supply and demand; • Interest rate risk associated with future debt, including reduced access to liquidity during periods of extreme capital markets volatility, such as the 2008 financial crisis and the COVID-19 pandemic; Credit Risk Credit risk is the risk of financial loss resulting from non-performance of contractual obligations by a counterparty. For production and generation activities, 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 on 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. We continue to monitor COVID-19 impacts and changes to customer load, consistency in customer payments, requests for deferred or discounted payments, and requests for changes to credit limits to quantify estimated future financial impacts to the allowance for credit losses. During the three and six months ended June 30, 2020, the potential economic impact of the COVID-19 pandemic was considered in forward looking projections related to write-off and recovery rates, and resulted in increases to the allowance for credit losses and bad debt expense of $1.5 million and $2.0 million, respectively. See Note 4 for further information. Derivatives and Hedging Activity Our derivative and hedging activities included in the accompanying Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Income and Condensed Consolidated Statements of Comprehensive Income are detailed below and in Note 10 . Utilities The operations of our utilities, including 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) and natural gas sold by our Gas Utilities, expose our utility customers to volatility in natural gas prices. Therefore, as allowed or required by state utility commissions, we have entered 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 Condensed 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 Condensed Consolidated Balance Sheets in accordance with the state utility commission guidelines. When the related costs are recovered through our rates, the hedging activity is recognized in the Condensed Consolidated Statements of Income. 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 risk using over-the-counter and exchange traded options and swaps with counterparties in anticipation of forecasted purchases and/or sales from July 2020 through May 2022. 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 effective portion of the gain or loss on these designated derivatives is reported in AOCI in the accompanying Condensed Consolidated Balance Sheets and the ineffective portion, if any, is reported in Fuel, purchased power and cost of natural gas sold. 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: June 30, 2020 December 31, 2019 Units Notional Maximum Term (months) (a) Notional Maximum Term (months) (a) Natural gas futures purchased MMBtus 660,000 9 1,450,000 12 Natural gas options purchased, net MMBtus 950,000 9 3,240,000 3 Natural gas basis swaps purchased MMBtus 520,000 6 1,290,000 12 Natural gas over-the-counter swaps, net (b) MMBtus 6,480,000 23 4,600,000 24 Natural gas physical contracts, net (c) MMBtus 8,085,376 9 13,548,235 12 Electric wholesale contracts (c) MWh 141,225 6 — 0 __________ (a) Term reflects the maximum forward period hedged. (b) As of June 30, 2020, 1,776,900 MMBtus of natural gas over-the-counter swaps purchases were designated as cash flow hedges. (c) Volumes exclude contracts that qualify for the normal purchases and normal sales exception. 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 June 30, 2020, the Company posted $0.5 million related to such provisions, which is included in Other current assets on the Condensed 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 June 30, 2020 December 31, 2019 Derivatives designated as hedges: Asset derivative instruments: Current commodity derivatives Derivative assets, current $ 66 $ 1 Noncurrent commodity derivatives Other assets, non-current 83 3 Liability derivative instruments: Current commodity derivatives Derivative liabilities, current (324) (490) Noncurrent commodity derivatives Other deferred credits and other liabilities — (29) Total derivatives designated as hedges $ (175) $ (515) Derivatives not designated as hedges: Asset derivative instruments: Current commodity derivatives Derivative assets, current $ 1,515 $ 341 Noncurrent commodity derivatives Other assets, non-current 191 2 Liability derivative instruments: Current commodity derivatives Derivative liabilities, current (297) (1,764) Noncurrent commodity derivatives Other deferred credits and other liabilities (15) (63) Total derivatives not designated as hedges $ 1,394 $ (1,484) Derivatives Designated as Hedges The impacts of cash flow hedges on our Condensed Consolidated Statements of Comprehensive Income and Condensed Consolidated Statements of Income are presented below for the three and six months ended June 30, 2020 and 2019. Note that this presentation does not reflect 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 June 30, Three Months Ended June 30, 2020 2019 2020 2019 Derivatives in Cash Flow Hedging Relationships Amount of (Gain)/Loss Recognized in OCI Income Statement Location Amount of Gain/(Loss) Reclassified from AOCI into Income (in thousands) (in thousands) Interest rate swaps $ 713 $ 713 Interest expense $ (713) $ (713) Commodity derivatives 11 (601) Fuel, purchased power and cost of natural gas sold (70) 83 Total $ 724 $ 112 $ (783) $ (630) Six Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Derivatives in Cash Flow Hedging Relationships Amount of (Gain)/Loss Recognized in OCI Income Statement Location Amount of Gain/(Loss) Reclassified from AOCI into Income (in thousands) (in thousands) Interest rate swaps $ 1,426 $ 1,426 Interest expense $ (1,426) $ (1,426) Commodity derivatives 268 (921) Fuel, purchased power and cost of natural gas sold (556) 637 Total $ 1,694 $ 505 $ (1,982) $ (789) Based on June 30, 2020 prices, a $0.2 million gain would be realized, reported in pre-tax earnings and reclassified from AOCI during the next 12 months. As market prices fluctuate, estimated and actual realized gains or losses will change during future periods. Derivatives Not Designated as Hedges The following table summarizes the impacts of derivative instruments not designated as hedge instruments on our Condensed Consolidated Statements of Income for the three and six months ended June 30, 2020 and 2019. Note that this presentation does not reflect 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 June 30, 2020 2019 Derivatives Not Designated as Hedging Instruments Income Statement Location Amount of Gain/(Loss) on Derivatives Recognized in Income Commodity derivatives - Electric Fuel, purchased power and cost of natural gas sold $ (204) $ — Commodity derivatives - Natural Gas Fuel, purchased power and cost of natural gas sold 449 (1,185) $ 245 $ (1,185) Six Months Ended June 30, 2020 2019 Derivatives Not Designated as Hedging Instruments Income Statement Location Amount of Gain/(Loss) on Derivatives Recognized in Income (in thousands) Commodity derivatives - Electric Fuel, purchased power and cost of natural gas sold $ 1,158 $ — Commodity derivatives - Natural Gas Fuel, purchased power and cost of natural gas sold 1,215 (1,160) $ 2,373 $ (1,160) As discussed above, financial instruments used in our regulated utilities are not designated as cash flow hedges. There is no earnings impact for our Gas Utilities 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 losses included in our Regulatory asset or Regulatory liability accounts related to the hedges in our Gas Utilities were $0.7 million and $3.3 million as of June 30, 2020 and December 31, 2019, respectively. For our Electric Utilities, the unrealized gains and losses arising from these derivatives are recognized in the Condensed Consolidated Statements of Income. |
Fair Value Measurements_
Fair Value Measurements: | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 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; and 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 CVA 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 to the Consolidated Financial Statements included in our 2019 Annual Report on Form 10-K filed with the SEC. As of June 30, 2020 Level 1 Level 2 Level 3 Cash Collateral and Counterparty Total (in thousands) Assets: Commodity derivatives — Gas Utilities $ — $ 1,114 $ — $ (417) $ 697 Commodity derivatives — Electric Utilities — 1,158 — — 1,158 Total $ — $ 2,272 $ — $ (417) $ 1,855 Liabilities: Commodity derivatives — Gas Utilities $ — $ 1,553 $ — $ (917) $ 636 Total $ — $ 1,553 $ — $ (917) $ 636 As of December 31, 2019 Level 1 Level 2 Level 3 Cash Collateral and Counterparty Total (in thousands) Assets: Commodity derivatives — Gas Utilities $ — $ 1,433 $ — $ (1,085) $ 348 Total $ — $ 1,433 $ — $ (1,085) $ 348 Liabilities: Commodity derivatives — Gas Utilities $ — $ 5,254 $ — $ (2,909) $ 2,345 Total $ — $ 5,254 $ — $ (2,909) $ 2,345 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 18 to the Consolidated Financial Statements included in our 2019 Annual Report on Form 10-K. The Company has concluded that the market volatility associated with COVID-19 does not require interim re-measurement of our pension plan assets or defined benefit obligations. See Note 12 for additional information. Nonrecurring Fair Value Measurement A discussion of the fair value of our investment in equity securities of a privately held oil and gas company, a Level 3 asset, is included in Note 15 . Other Fair Value Measures The following table presents the carrying amounts and fair values of financial instruments not recorded at fair value on the Condensed Consolidated Balance Sheets (in thousands) as of: June 30, 2020 December 31, 2019 Carrying Fair Value Carrying Fair Value Long-term debt, including current maturities (a) $ 3,537,194 $ 4,051,912 $ 3,145,839 $ 3,479,367 __________ (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 as Level 2 in the fair value hierarchy. Carrying amount of long-term debt is net of deferred financing costs. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss): | 6 Months Ended |
Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) 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 Condensed Consolidated Statements of Income for the period (in thousands): Location on the Condensed Consolidated Statements of Income Amount Reclassified from AOCI Three Months Ended Six Months Ended June 30, 2020 2019 2020 2019 Gains and (losses) on cash flow hedges: Interest rate swaps Interest expense $ (713) $ (713) $ (1,426) $ (1,426) Commodity contracts Fuel, purchased power and cost of natural gas sold (70) 83 (556) 637 (783) (630) (1,982) (789) Income tax Income tax benefit (expense) 186 153 471 188 Total reclassification adjustments related to cash flow hedges, net of tax $ (597) $ (477) $ (1,511) $ (601) Amortization of components of defined benefit plans: Prior service cost Operations and maintenance $ 25 $ 20 $ 55 $ 39 Actuarial gain (loss) Operations and maintenance (597) (221) (1,194) (441) (572) (201) (1,139) (402) Income tax Income tax benefit (expense) 176 47 264 95 Total reclassification adjustments related to defined benefit plans, net of tax $ (396) $ (154) $ (875) $ (307) Total reclassifications $ (993) $ (631) $ (2,386) $ (908) Balances by classification included within AOCI, net of tax on the accompanying Condensed Consolidated Balance Sheets were as follows (in thousands): Interest Rate Swaps Commodity Derivatives Employee Benefit Plans Total As of December 31, 2019 $ (15,122) $ (456) $ (15,077) $ (30,655) Other comprehensive income (loss) before reclassifications — (220) 55 (165) Amounts reclassified from AOCI 1,087 424 875 2,386 As of June 30, 2020 $ (14,035) $ (252) $ (14,147) $ (28,434) Interest Rate Swaps Commodity Derivatives Employee Benefit Plans Total As of December 31, 2018 $ (17,307) $ 328 $ (9,937) $ (26,916) Other comprehensive income (loss) before reclassifications — (219) — (219) Amounts reclassified from AOCI 1,091 (490) 307 908 As of June 30, 2019 $ (16,216) $ (381) $ (9,630) $ (26,227) |
Employee Benefit Plans_
Employee Benefit Plans: | 6 Months Ended |
Jun. 30, 2020 | |
Defined Benefit Plan [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Change in Accounting Principle - Pension Accounting Asset Method Effective January 1, 2020, the Company changed its method of accounting for net periodic benefit cost. Prior to the change, the Company used a calculated value for determining market-related value of plan assets which amortized the effects of gains and losses over a five-year period. Effective with the accounting change, the Company will use a calculated value for the return-seeking assets (equities) in the portfolio and fair value for the liability-hedging assets (fixed income). The Company considers the fair value method for determining market-related value of liability-hedging assets to be a preferable method of accounting because asset-related gains and losses are subject to amortization into pension cost immediately. Additionally, the fair value for liability-hedging assets allows for the impact of gains and losses on this portion of the asset portfolio to be reflected in tandem with changes in the liability which is linked to changes in the discount rate assumption for re-measurement. We evaluated the effect of this change in accounting method and deemed it immaterial to the historical and current financial statements and therefore did not account for the change retrospectively. Accordingly, the Company calculated the cumulative difference using a calculated value versus fair value to determine market-related value for liability-hedging assets of the portfolio. The cumulative effect of this change, as of January 1, 2020, resulted in a decrease to prior service costs, as recorded in Other income (expense), net, of $0.6 million, an increase in Income tax expense of $0.2 million and an increase to Net income of $0.4 million within the accompanying Condensed Consolidated Statements of Income for the six months ended June 30, 2020. Funding Status of Employee Benefit Plans Based on the fair value of assets and estimated discount rate used to value benefit obligations as of June 30, 2020, we estimate the unfunded status of our employee benefit plans to be approximately $50 million compared to $51 million at December 31, 2019. In 2012, we froze our pension plan and closed it to new participants. Since then, we have implemented various de-risking strategies including lump sum buyouts, the purchase of annuities and the reduction of return-seeking assets over time to a more liability-hedged portfolio. As a result, recent capital markets volatility driven by the COVID-19 pandemic has not materially affected our unfunded status and does not require interim re-measurement of our pension plan assets or defined benefit obligations. Defined Benefit Pension Plan The components of net periodic benefit cost for the Defined Benefit Pension Plan were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Service cost $ 1,353 $ 1,345 $ 2,706 $ 2,691 Interest cost 3,356 4,344 6,713 8,687 Expected return on plan assets (5,648) (6,100) (11,296) (12,200) Prior service cost — 7 — 13 Net loss (gain) 2,093 940 4,186 1,881 Net periodic benefit cost $ 1,154 $ 536 $ 2,309 $ 1,072 Defined Benefit Postretirement Healthcare Plan The components of net periodic benefit cost for the Defined Benefit Postretirement Healthcare Plan were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Service cost $ 514 $ 454 $ 1,028 $ 908 Interest cost 413 563 825 1,123 Expected return on plan assets (46) (58) (91) (115) Prior service (benefit) (137) (100) (274) (199) Net loss (gain) 5 — 10 — Net periodic benefit cost $ 749 $ 859 $ 1,498 $ 1,717 Supplemental Non-qualified Defined Benefit and Defined Contribution Plans The components of net periodic benefit cost for the Supplemental Non-qualified Defined Benefit and Defined Contribution Plans were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Service cost $ 1,817 $ 692 $ 447 $ 1,977 Interest cost 275 324 550 648 Prior service cost — 1 — 1 Net loss (gain) 426 134 852 268 Net periodic benefit cost $ 2,518 $ 1,151 $ 1,849 $ 2,894 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 six months of 2020 and anticipated contributions for 2020 and 2021 are as follows (in thousands): Contributions Made Additional Contributions Contributions Six Months Ended June 30, 2020 Anticipated for 2020 Anticipated for 2021 Defined Benefit Pension Plan $ 12,700 $ — $ 12,700 Non-pension Defined Benefit Postretirement Healthcare Plans $ 2,670 $ 2,671 $ 5,364 Supplemental Non-qualified Defined Benefit and Defined Contribution Plans $ 710 $ 710 $ 1,614 |
Commitments and Contingencies_
Commitments and Contingencies: | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies There have been no significant changes to commitments and contingencies from those previously disclosed in Note 19 of our Notes to the Consolidated Financial Statements in our 2019 Annual Report on Form 10-K except for those described below and in Note 5 . Power Sales Agreement - Colorado Electric On July 1, 2020, Colorado Electric entered into a PSA with the City of Colorado Springs to sell up to 60 MW of wind energy purchased from PRPA under a separate PPA. This agreement expires June 30, 2025. |
Income Taxes_
Income Taxes: | 6 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes CARES Act On March 27, 2020, the President signed the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), which contained, in part, an allowance for deferral of the employer portion of Social Security employment tax liabilities until 2021 and 2022, as well as a COVID-19 employee retention tax credit of up to $5,000 per eligible employee. Eligible employers are taxpayers experiencing either: (1) a full or partial suspension of business operations stemming from a government COVID-19-related order or (2) a more than 50% drop in gross receipts compared to the corresponding calendar quarter in 2019. This 50% employee retention tax credit applies up to $10,000 in qualified wages paid between March 13, 2020 through December 31, 2020, and is refundable to the extent it exceeds the employer portion of payroll tax liability. Eligible wages or employer-paid health benefits must be paid for the period of time during which an employee did not provide services. However, employees do not need to stop providing all services to the employer for the credit to potentially apply. Additionally, the CARES Act accelerates the amount of alternative minimum tax (“AMT”) credits that can be refunded for the 2018 and 2019 annual tax returns. During the second quarter 2020, we utilized the payroll tax deferral provision which allowed us to defer payment of approximately $2.9 million of Social Security employment tax liabilities. We are currently reviewing the potential future benefits of the CARES Act related to employee retention tax credits to assess the impact on our financial position, results of operations and cash flows. Income tax (expense) for the Three Months Ended June 30, 2020 Compared to the Three Months Ended June 30, 2019. Income tax (expense) for the three months ended June 30, 2020 was $(4.8) million compared to $(2.3) million reported for the same period in 2019. For the three months ended June 30, 2020, the effective tax rate was 16.4% compared to 11.5% for the same period in 2019. The higher effective tax rate is primarily due to a prior year discrete tax benefit related to repairs and certain indirect costs. Income tax (expense) for the Six Months Ended June 30, 2020 Compared to the Six Months Ended June 30, 2019. Income tax (expense) for the six months ended June 30, 2020 was $(21) million compared to $(20) million reported for the same period in 2019. For the six months ended June 30, 2020, the effective tax rate was 14.6% compared to 13.5% for the same period in 2019. The higher effective tax rate is primarily due to a prior year discrete tax benefit related to repairs and certain indirect costs and a current year discrete tax adjustment related to the impairment of our investment in equity securities of a privately held oil and gas company partially offset by increased tax benefits from forecasted federal production tax credits associated with new wind assets. |
Investments_
Investments: | 6 Months Ended |
Jun. 30, 2020 | |
Investments, All Other Investments [Abstract] | |
Investments | Investments In February 2018, we contributed $28 million of assets in exchange for equity securities in a privately held oil and gas company as we divested our Oil and Gas segment. The carrying value of our investment in the equity securities was recorded at cost. We review this investment on a periodic basis to determine whether a significant event or change in circumstances has occurred that may have an adverse effect on the value of the investment. During the third quarter of 2019, we assessed our investment for impairment as a result of a deterioration in earnings performance of the privately held oil and gas company and an adverse change in future natural gas prices. We engaged a third-party valuation consultant to estimate the fair value of our investment. The valuation was primarily based on an income approach but also considered a market valuation approach. The significant inputs used to estimate the fair value were the oil and gas reserve quantities and values utilizing forward market price curves, industry standard reserve adjustment factors and a discount rate of 10%. Based on the results of the valuation, we concluded that the carrying value of the investment exceeded fair value. As a result, we recorded a pre-tax impairment loss of $20 million for the three months ended September 30, 2019, which was the difference between the carrying value and the fair value of the investment at that time. During the first quarter of 2020, we assessed our investment for impairment as a result of continued adverse changes in future natural gas prices and liquidity concerns at the privately held oil and gas company. We performed an internal analysis to compute the fair value of our investment, utilizing a consistent methodology as applied during the third quarter of 2019. Based on the results of the valuation, we concluded that the carrying value of the investment exceeded fair value. As a result, we recorded a pre-tax impairment loss of $6.9 million for the three months ended March 31, 2020, which was the difference between the carrying value and the fair value of the investment at that time. The following table presents the carrying value of our investments (in thousands) as of: June 30, 2020 December 31, 2019 Investment in privately held oil and gas company $ 1,500 $ 8,359 Cash surrender value of life insurance contracts 13,423 13,056 Other investments 515 514 Total investments $ 15,438 $ 21,929 |
Subsequent Events_
Subsequent Events: | 6 Months Ended |
Jun. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events We evaluated all subsequent event activity and concluded that no subsequent events have occurred that would require recognition in the condensed consolidated financial statements or disclosures, with the exception of those items disclosed in Notes 8 and 13 |
Management's Statement (Policie
Management's Statement (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Segment Reporting | Segment Reporting We conduct our operations through the following reportable segments: Electric Utilities, Gas Utilities, Power Generation and Mining. Our reportable segments are based on our method of internal reporting, which is generally segregated by differences in products, services and regulation. All of our operations and assets are located within the United States. |
Use of Estimates and Basis of Presentation | Use of Estimates and Basis of Presentation The information furnished in the accompanying Condensed 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 June 30, 2020, December 31, 2019 and June 30, 2019 financial information. Certain industries in which we operate are highly seasonal and revenue from, and certain expenses for, such operations may fluctuate significantly among quarterly periods. Demand for electricity and natural gas is sensitive to seasonal cooling, heating and industrial load requirements. In particular, the normal peak usage season for electric utilities is June through August while the normal peak usage season for gas utilities is November through March. Significant earnings variances can be expected between the Gas Utilities segment’s peak and off-peak seasons. Due to this seasonal nature, our results of operations for the three and six months ended June 30, 2020 and June 30, 2019, and our financial condition as of June 30, 2020 and December 31, 2019 are not necessarily indicative of the results of operations and financial condition to be expected for any other period. All earnings per share amounts discussed refer to diluted earnings per share unless otherwise noted. |
Reclassification | Reclassification We changed certain classifications of operating expenses on the Condensed Consolidated Statements of Income for the three and six months ended June 30, 2019 to conform with current year presentation. The prior year reclassifications, which are shown in the table below, did not impact previously reported operating income or net income. Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 (in millions) Fuel, purchased power and cost of natural gas sold $ 0.4 $ 1.3 Operations and maintenance — (0.3) Taxes - property and production — (0.2) Other operating expenses (0.4) (0.8) $ — $ — |
Change in Accounting Principle - Pension Accounting Asset Method | Change in Accounting Principle - Pension Accounting Asset Method Effective January 1, 2020, we changed our method of accounting for net periodic benefit cost. Prior to the change, the Company used a calculated value for determining market-related value of plan assets which amortized the effects of gains and losses over a five-year period. Effective with the accounting change, the Company will use a calculated value for the return-seeking assets (equities) in the portfolio and change to fair value for the liability-hedging assets (fixed income). See Note 12 for additional information. |
Recently Issued and Adopted Accounting Standards | Recently Issued Accounting Standards Simplifying the Accounting for Income Taxes, ASU 2019-12 In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes, as part of its overall simplification initiative to reduce costs and complexity in applying accounting standards while maintaining or improving the usefulness of the information provided to users of the financial statements. Amendments include removal of certain exceptions to the general principles of ASC 740, Income Taxes , and simplification in several other areas such as accounting for a franchise tax (or similar tax) that is partially based on income. The new guidance is effective for interim and annual periods beginning after December 15, 2020 with early adoption permitted. We are currently reviewing this standard to assess the impact on our financial position, results of operations and cash flows. Recently Adopted Accounting Standards Financial Instruments -- Credit Losses: Measurement of Credit Losses on Financial Instruments, ASU 2016-13 In June 2016, the FASB issued ASU 2016-13, Financial Instruments -- Credit Losses: Measurement of Credit Losses on Financial Instruments, which was subsequently amended by ASUs 2018-19, 2019-04, 2019-05, 2019-10, and 2019-11. The standard introduces new accounting guidance for credit losses on financial instruments within its scope, including trade receivables. This new guidance adds an impairment model that is based on expected losses rather than incurred losses. We adopted this standard on January 1, 2020 with prior year comparative financial information remaining as previously reported when transitioning to the new standard. On January 1, 2020, we recorded an increase to our allowance for credit losses, primarily associated with the inclusion of expected losses on unbilled revenue. The cumulative effect of the adoption, net of tax impact, was $0.2 million, which was recorded as an adjustment to retained earnings. Simplifying the Test for Goodwill Impairment, ASU 2017-04 In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment, by eliminating step 2 from the goodwill impairment test. Under the new guidance, if the carrying amount of a reporting unit exceeds its fair value, an impairment loss will be recognized in an amount equal to that excess, limited to the amount of goodwill allocated to that reporting unit. We adopted this standard prospectively on January 1, 2020. Adoption of this guidance, in conjunction with the annual goodwill impairment test as of October 1, 2020, is not expected to have an impact on our financial position, results of operations or cash flows. Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, ASU 2018-15 In August 2018, the FASB issued ASU 2018-15, Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract , which aligns the requirements for recording implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. As a result, certain categories of implementation costs that previously would have been charged to expense as incurred are now capitalized as prepayments and amortized over the term of the arrangement. We adopted this standard prospectively on January 1, 2020. Adoption of this guidance did not have a material impact on our financial position, results of operations or cash flows. |
Revenue Recognition | Our revenue contracts generally provide for performance obligations that: are fulfilled and transfer control to customers over time; represent a series of distinct services that are substantially the same; involve the same pattern of transfer to the customer; and provide a right to consideration from our customers in an amount that corresponds directly with the value to the customer for the performance completed to date. Therefore, we recognize revenue in the amount to which we have a right to invoice. The nature of our primary revenue contracts provides an unconditional right to consideration upon service delivery; therefore, no customer contract assets or liabilities exist. The unconditional right to consideration is represented by the balance in our Accounts Receivable further discussed in Note 4 . |
Organization, Consolidation and
Organization, Consolidation and Presentation of Financial Statements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Reclassification | The prior year reclassifications, which are shown in the table below, did not impact previously reported operating income or net income. Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 (in millions) Fuel, purchased power and cost of natural gas sold $ 0.4 $ 1.3 Operations and maintenance — (0.3) Taxes - property and production — (0.2) Other operating expenses (0.4) (0.8) $ — $ — |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 reporting segments for the three and six months ended June 30, 2020 and 2019. Sales tax and other similar taxes are excluded from revenues. Three Months Ended June 30, 2020 Electric Utilities Gas Utilities Power Generation Mining Inter-company Revenues Total Customer types: (in thousands) Retail $ 141,804 $ 120,594 $ — $ 14,846 $ (7,916) $ 269,328 Transportation — 30,792 — — (138) 30,654 Wholesale 3,470 — 25,718 — (24,476) 4,712 Market - off-system sales 3,538 23 — — (1,580) 1,981 Transmission/Other 12,761 9,189 — — (4,432) 17,518 Revenue from contracts with customers $ 161,573 $ 160,598 $ 25,718 $ 14,846 $ (38,542) $ 324,193 Other revenues 1,627 512 404 570 (392) 2,721 Total revenues $ 163,200 $ 161,110 $ 26,122 $ 15,416 $ (38,934) $ 326,914 Timing of revenue recognition: Services transferred at a point in time $ — $ — $ — $ 14,846 $ (7,916) $ 6,930 Services transferred over time 161,573 160,598 25,718 — (30,626) 317,263 Revenue from contracts with customers $ 161,573 $ 160,598 $ 25,718 $ 14,846 $ (38,542) $ 324,193 Three Months Ended June 30, 2019 Electric Utilities Gas Utilities Power Generation Mining Inter-company Revenues Total Customer Types: Retail $ 139,732 $ 123,630 $ — $ 12,428 $ (7,041) $ 268,749 Transportation — 28,623 — — (276) 28,347 Wholesale 6,781 — 15,062 — (13,296) 8,547 Market - off-system sales 3,448 161 — — (1,335) 2,274 Transmission/Other 14,416 11,612 — — (4,199) 21,829 Revenue from contracts with customers $ 164,377 $ 164,026 $ 15,062 $ 12,428 $ (26,147) $ 329,746 Other revenues 1,977 1,443 9,646 617 (9,541) 4,142 Total Revenues $ 166,354 $ 165,469 $ 24,708 $ 13,045 $ (35,688) $ 333,888 Timing of Revenue Recognition: Services transferred at a point in time $ — $ — $ — $ 12,428 $ (7,041) $ 5,387 Services transferred over time 164,377 164,026 15,062 — (19,106) 324,359 Revenue from contracts with customers $ 164,377 $ 164,026 $ 15,062 $ 12,428 $ (26,147) $ 329,746 Six Months Ended June 30, 2020 Electric Utilities Gas Utilities Power Generation Mining Inter-company Revenues Total Customer types: (in thousands) Retail $ 290,444 $ 418,841 $ — $ 29,249 $ (15,755) $ 722,779 Transportation — 74,900 — — (277) 74,623 Wholesale 9,022 — 51,185 — (48,088) 12,119 Market - off-system sales 8,405 161 — — (4,219) 4,347 Transmission/Other 27,618 21,761 — — (8,845) 40,534 Revenue from contracts with customers $ 335,489 $ 515,663 $ 51,185 $ 29,249 $ (77,184) $ 854,402 Other revenues 1,850 6,220 903 1,372 (783) 9,562 Total revenues $ 337,339 $ 521,883 $ 52,088 $ 30,621 $ (77,967) $ 863,964 Timing of revenue recognition: Services transferred at a point in time $ — $ — $ — $ 29,249 $ (15,755) $ 13,494 Services transferred over time 335,489 515,663 51,185 — (61,429) 840,908 Revenue from contracts with customers $ 335,489 $ 515,663 $ 51,185 $ 29,249 $ (77,184) $ 854,402 Six Months Ended June 30, 2019 Electric Utilities Gas Utilities Power Generation Mining Inter-company Revenues Total Customer Types: Retail $ 293,195 $ 477,905 $ — $ 28,257 $ (15,169) $ 784,188 Transportation — 73,140 — — (708) 72,432 Wholesale 15,124 — 30,531 — (26,509) 19,146 Market - off-system sales 10,140 378 — — (3,559) 6,959 Transmission/Other 28,591 24,802 — — (8,402) 44,991 Revenue from contracts with customers $ 347,050 $ 576,225 $ 30,531 $ 28,257 $ (54,347) $ 927,716 Other revenues 2,231 324 19,422 1,217 (19,212) 3,982 Total Revenues $ 349,281 $ 576,549 $ 49,953 $ 29,474 $ (73,559) $ 931,698 Timing of Revenue Recognition: Services transferred at a point in time $ — $ — $ — $ 28,257 $ (15,169) $ 13,088 Services transferred over time 347,050 576,225 30,531 — (39,178) 914,628 Revenue from contracts with customers $ 347,050 $ 576,225 $ 30,531 $ 28,257 $ (54,347) $ 927,716 |
Business Segment Information (T
Business Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting Information, Additional Information [Abstract] | |
Segment Reporting | Segment and Corporate and Other information is as follows (in thousands): Three Months Ended June 30, 2020 External Operating Inter-company Operating Revenue Total Revenues Contract Customers Other Revenues Contract Customers Other Revenues Segment: Electric Utilities $ 156,197 $ 1,627 $ 5,376 $ — $ 163,200 Gas Utilities 159,824 512 774 — 161,110 Power Generation 1,242 349 24,476 55 26,122 Mining 6,930 233 7,916 337 15,416 Inter-company eliminations — — (38,542) (392) (38,934) Total $ 324,193 $ 2,721 $ — $ — $ 326,914 Three Months Ended June 30, 2019 External Operating Revenue Inter-company Operating Revenue Total Revenues Contract Customers Other Revenues Contract Customers Other Revenues Segment: Electric Utilities $ 159,140 $ 1,977 $ 5,237 $ — $ 166,354 Gas Utilities 163,303 1,443 723 — 165,469 Power Generation 1,765 434 13,297 9,212 24,708 Mining 5,538 288 6,890 329 13,045 Inter-company eliminations — — (26,147) (9,541) (35,688) Total $ 329,746 $ 4,142 $ — $ — $ 333,888 Six Months Ended June 30, 2020 External Operating Revenue Inter-company Operating Revenue Total Revenues Contract Customers Other Revenues Contract Customers Other Revenues Segment: Electric Utilities $ 323,700 $ 1,850 $ 11,789 $ — $ 337,339 Gas Utilities 514,111 6,220 1,552 — 521,883 Power Generation 3,097 792 48,088 111 52,088 Mining 13,494 700 15,755 672 30,621 Inter-company eliminations — — (77,184) (783) (77,967) Total $ 854,402 $ 9,562 $ — $ — $ 863,964 Six Months Ended June 30, 2019 External Operating Revenue Inter-company Operating Revenue Total Revenues Contract Customers Other Revenues Contract Customers Other Revenues Segment: Electric Utilities $ 335,803 $ 2,231 $ 11,247 $ — $ 349,281 Gas Utilities 574,803 324 1,422 — 576,549 Power Generation 4,022 870 26,509 18,552 49,953 Mining 13,088 557 15,169 660 29,474 Inter-company eliminations — — (54,347) (19,212) (73,559) Total $ 927,716 $ 3,982 $ — $ — $ 931,698 Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Adjusted operating income (a) : Electric Utilities $ 33,993 $ 33,546 $ 69,643 $ 74,566 Gas Utilities 18,209 8,557 121,106 111,871 Power Generation 11,402 10,156 22,751 22,123 Mining 3,358 1,640 6,487 5,977 Corporate and Other (29) 102 131 (405) Operating income 66,933 54,001 220,118 214,132 Interest expense, net (35,545) (34,264) (70,998) (68,981) Impairment of investment — — (6,859) — Other income (expense), net (1,863) 263 490 (526) Income tax (expense) (4,831) (2,307) (20,833) (19,570) Net income 24,694 17,693 121,918 125,055 Net income attributable to noncontrolling interest (3,728) (3,110) (7,778) (6,664) Net income available for common stock $ 20,966 $ 14,583 $ 114,140 $ 118,391 __________ (a) Adjusted operating income recognizes intersegment revenues and costs for Colorado Electric’s PPA with Black Hills Colorado IPP on an accrual basis rather than as a finance lease. This presentation of segment information does not impact consolidated financial results. |
Reconciliation of Assets from Segment to Consolidated | Segment and Corporate and Other balances included in the accompanying Condensed Consolidated Balance Sheets were as follows (in thousands): Total assets (net of inter-company eliminations) as of: June 30, 2020 December 31, 2019 Segment: Electric Utilities $ 2,982,841 $ 2,900,983 Gas Utilities 4,052,860 4,032,339 Power Generation 407,107 417,715 Mining 79,774 77,175 Corporate and Other 167,350 130,245 Total assets $ 7,689,932 $ 7,558,457 |
Selected Balance Sheet Inform_2
Selected Balance Sheet Information (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Selected Balance Sheet Information [Abstract] | |
Account Receivable Schedule | Following is a summary of Accounts receivable, net included in the accompanying Condensed Consolidated Balance Sheets (in thousands) as of: June 30, 2020 December 31, 2019 Accounts receivable, trade $ 122,650 $ 144,747 Unbilled revenue 55,915 113,502 Less: Allowance for credit losses (7,585) (2,444) Accounts receivable, net $ 170,980 $ 255,805 |
Financing Receivable, Current, Allowance for Credit Loss | Changes to allowance for credit losses for the six months ended June 30, 2020 and 2019, 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 June 30, 2020 $ 2,444 $ 6,715 $ 2,203 $ (3,777) $ 7,585 2019 $ 3,209 $ 4,913 $ 1,870 $ (4,906) $ 5,086 |
Materials, Supplies, and Fuel Schedule | The following amounts by major classification are included in Materials, supplies and fuel on the accompanying Condensed Consolidated Balance Sheets (in thousands) as of: June 30, 2020 December 31, 2019 Materials and supplies $ 92,284 $ 82,809 Fuel - Electric Utilities 3,574 2,425 Natural gas in storage 10,129 31,938 Total materials, supplies and fuel $ 105,987 $ 117,172 |
Accrued Liabilities Schedule | The following amounts by major classification are included in Accrued liabilities on the accompanying Condensed Consolidated Balance Sheets (in thousands) as of: June 30, 2020 December 31, 2019 Accrued employee compensation, benefits and withholdings $ 59,701 $ 62,837 Accrued property taxes 36,832 44,547 Customer deposits and prepayments 45,143 54,728 Accrued interest 31,757 31,868 Other (none of which is individually significant) 28,234 32,787 Total accrued liabilities $ 201,667 $ 226,767 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Regulatory Assets and Liabilities Disclosure [Abstract] | |
Schedule of Regulatory Assets and Liabilities | We had the following regulatory assets and liabilities (in thousands) as of: June 30, 2020 December 31, 2019 Regulatory assets Deferred energy and fuel cost adjustments (a) $ 36,900 $ 34,088 Deferred gas cost adjustments (a) 226 1,540 Gas price derivatives (a) 662 3,328 Deferred taxes on AFUDC (b) 7,715 7,790 Employee benefit plans (c) 115,416 115,900 Environmental (a) 1,426 1,454 Loss on reacquired debt (a) 23,820 24,777 Renewable energy standard adjustment (a) 1 1,622 Deferred taxes on flow through accounting (c) 44,940 41,220 Decommissioning costs (b) 9,854 10,670 Gas supply contract termination (a) 5,521 8,485 Other regulatory assets (a) 25,831 20,470 Total regulatory assets 272,312 271,344 Less current regulatory assets (51,745) (43,282) Regulatory assets, non-current $ 220,567 $ 228,062 Regulatory liabilities Deferred energy and gas costs (a) $ 28,279 $ 17,278 Employee benefit plan costs and related deferred taxes (c) 41,025 43,349 Cost of removal (a) 168,137 166,727 Excess deferred income taxes (c) 288,796 285,438 TCJA revenue reserve 3,027 3,418 Other regulatory liabilities (c) 36,557 20,442 Total regulatory liabilities 565,821 536,652 Less current regulatory liabilities (59,428) (33,507) Regulatory liabilities, non-current $ 506,393 $ 503,145 __________ (a) Recovery of costs, but we are not allowed a rate of return. (b) In addition to recovery of costs, we are 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. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share Reconciliation | A reconciliation of share amounts used to compute earnings per share in the accompanying Condensed Consolidated Statements of Income was as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Net income available for common stock $ 20,966 $ 14,583 $ 114,140 $ 118,391 Weighted average shares - basic 62,573 60,467 62,175 60,195 Dilutive effect of: Equity compensation 44 139 55 138 Weighted average shares - diluted 62,617 60,606 62,230 60,333 Earnings per share of common stock: Earnings per share, Basic $ 0.34 $ 0.24 $ 1.84 $ 1.97 Earnings per share, Diluted $ 0.33 $ 0.24 $ 1.83 $ 1.96 |
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 June 30, Six Months Ended June 30, 2020 2019 2020 2019 Equity compensation 29 — 26 — Restricted stock 76 — 36 — Anti-dilutive shares 105 — 62 — |
Notes Payable, Current Maturi_2
Notes Payable, Current Maturities and Debt (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Debt | We had the following short-term debt outstanding in the accompanying Condensed Consolidated Balance Sheets (in thousands) as of: June 30, 2020 December 31, 2019 Balance Outstanding Letters of Credit (a) Balance Outstanding Letters of Credit (a) Revolving Credit Facility $ — $ 11,999 $ — $ 30,274 CP Program — — 349,500 — Total $ — $ 11,999 $ 349,500 $ 30,274 _______________ (a) Letters of credit are off-balance sheet commitments that reduce the borrowing capacity available on our corporate Revolving Credit Facility. |
Credit Facility and Short Term Debt Covenants | Our Revolving Credit Facility and term loans require compliance with the following financial covenant, which we were in compliance with at June 30, 2020: As of June 30, 2020 Covenant Requirement Consolidated Indebtedness to Capitalization Ratio 58.7% Less than 65% |
Risk Management and Derivativ_2
Risk Management and Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Contract or notional amounts and terms of marketing activities and derivative commodity instruments | We had the following net long positions as of: June 30, 2020 December 31, 2019 Units Notional Maximum Term (months) (a) Notional Maximum Term (months) (a) Natural gas futures purchased MMBtus 660,000 9 1,450,000 12 Natural gas options purchased, net MMBtus 950,000 9 3,240,000 3 Natural gas basis swaps purchased MMBtus 520,000 6 1,290,000 12 Natural gas over-the-counter swaps, net (b) MMBtus 6,480,000 23 4,600,000 24 Natural gas physical contracts, net (c) MMBtus 8,085,376 9 13,548,235 12 Electric wholesale contracts (c) MWh 141,225 6 — 0 __________ (a) Term reflects the maximum forward period hedged. (b) As of June 30, 2020, 1,776,900 MMBtus of natural gas over-the-counter swaps purchases were designated as cash flow hedges. |
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 June 30, 2020 December 31, 2019 Derivatives designated as hedges: Asset derivative instruments: Current commodity derivatives Derivative assets, current $ 66 $ 1 Noncurrent commodity derivatives Other assets, non-current 83 3 Liability derivative instruments: Current commodity derivatives Derivative liabilities, current (324) (490) Noncurrent commodity derivatives Other deferred credits and other liabilities — (29) Total derivatives designated as hedges $ (175) $ (515) Derivatives not designated as hedges: Asset derivative instruments: Current commodity derivatives Derivative assets, current $ 1,515 $ 341 Noncurrent commodity derivatives Other assets, non-current 191 2 Liability derivative instruments: Current commodity derivatives Derivative liabilities, current (297) (1,764) Noncurrent commodity derivatives Other deferred credits and other liabilities (15) (63) Total derivatives not designated as hedges $ 1,394 $ (1,484) |
Derivative Instruments, Gain (Loss) | The impacts of cash flow hedges on our Condensed Consolidated Statements of Comprehensive Income and Condensed Consolidated Statements of Income are presented below for the three and six months ended June 30, 2020 and 2019. Note that this presentation does not reflect 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 June 30, Three Months Ended June 30, 2020 2019 2020 2019 Derivatives in Cash Flow Hedging Relationships Amount of (Gain)/Loss Recognized in OCI Income Statement Location Amount of Gain/(Loss) Reclassified from AOCI into Income (in thousands) (in thousands) Interest rate swaps $ 713 $ 713 Interest expense $ (713) $ (713) Commodity derivatives 11 (601) Fuel, purchased power and cost of natural gas sold (70) 83 Total $ 724 $ 112 $ (783) $ (630) Six Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Derivatives in Cash Flow Hedging Relationships Amount of (Gain)/Loss Recognized in OCI Income Statement Location Amount of Gain/(Loss) Reclassified from AOCI into Income (in thousands) (in thousands) Interest rate swaps $ 1,426 $ 1,426 Interest expense $ (1,426) $ (1,426) Commodity derivatives 268 (921) Fuel, purchased power and cost of natural gas sold (556) 637 Total $ 1,694 $ 505 $ (1,982) $ (789) Based on June 30, 2020 prices, a $0.2 million gain would be realized, reported in pre-tax earnings and reclassified from AOCI during the next 12 months. As market prices fluctuate, estimated and actual realized gains or losses will change during future periods. Derivatives Not Designated as Hedges The following table summarizes the impacts of derivative instruments not designated as hedge instruments on our Condensed Consolidated Statements of Income for the three and six months ended June 30, 2020 and 2019. Note that this presentation does not reflect 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 June 30, 2020 2019 Derivatives Not Designated as Hedging Instruments Income Statement Location Amount of Gain/(Loss) on Derivatives Recognized in Income Commodity derivatives - Electric Fuel, purchased power and cost of natural gas sold $ (204) $ — Commodity derivatives - Natural Gas Fuel, purchased power and cost of natural gas sold 449 (1,185) $ 245 $ (1,185) Six Months Ended June 30, 2020 2019 Derivatives Not Designated as Hedging Instruments Income Statement Location Amount of Gain/(Loss) on Derivatives Recognized in Income (in thousands) Commodity derivatives - Electric Fuel, purchased power and cost of natural gas sold $ 1,158 $ — Commodity derivatives - Natural Gas Fuel, purchased power and cost of natural gas sold 1,215 (1,160) $ 2,373 $ (1,160) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Hierarchy, Measured on Recurring Basis | 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 CVA 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 to the Consolidated Financial Statements included in our 2019 Annual Report on Form 10-K filed with the SEC. As of June 30, 2020 Level 1 Level 2 Level 3 Cash Collateral and Counterparty Total (in thousands) Assets: Commodity derivatives — Gas Utilities $ — $ 1,114 $ — $ (417) $ 697 Commodity derivatives — Electric Utilities — 1,158 — — 1,158 Total $ — $ 2,272 $ — $ (417) $ 1,855 Liabilities: Commodity derivatives — Gas Utilities $ — $ 1,553 $ — $ (917) $ 636 Total $ — $ 1,553 $ — $ (917) $ 636 As of December 31, 2019 Level 1 Level 2 Level 3 Cash Collateral and Counterparty Total (in thousands) Assets: Commodity derivatives — Gas Utilities $ — $ 1,433 $ — $ (1,085) $ 348 Total $ — $ 1,433 $ — $ (1,085) $ 348 Liabilities: Commodity derivatives — Gas Utilities $ — $ 5,254 $ — $ (2,909) $ 2,345 Total $ — $ 5,254 $ — $ (2,909) $ 2,345 |
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 Condensed Consolidated Balance Sheets (in thousands) as of: June 30, 2020 December 31, 2019 Carrying Fair Value Carrying Fair Value Long-term debt, including current maturities (a) $ 3,537,194 $ 4,051,912 $ 3,145,839 $ 3,479,367 __________ (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 as Level 2 in the fair value hierarchy. Carrying amount of long-term debt is net of deferred financing costs. |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | |
Reclassification Out of Accumulated Other Comprehensive Income (Loss) | The following table details reclassifications out of AOCI and into net income. The amounts in parentheses below indicate decreases to net income in the Condensed Consolidated Statements of Income for the period (in thousands): Location on the Condensed Consolidated Statements of Income Amount Reclassified from AOCI Three Months Ended Six Months Ended June 30, 2020 2019 2020 2019 Gains and (losses) on cash flow hedges: Interest rate swaps Interest expense $ (713) $ (713) $ (1,426) $ (1,426) Commodity contracts Fuel, purchased power and cost of natural gas sold (70) 83 (556) 637 (783) (630) (1,982) (789) Income tax Income tax benefit (expense) 186 153 471 188 Total reclassification adjustments related to cash flow hedges, net of tax $ (597) $ (477) $ (1,511) $ (601) Amortization of components of defined benefit plans: Prior service cost Operations and maintenance $ 25 $ 20 $ 55 $ 39 Actuarial gain (loss) Operations and maintenance (597) (221) (1,194) (441) (572) (201) (1,139) (402) Income tax Income tax benefit (expense) 176 47 264 95 Total reclassification adjustments related to defined benefit plans, net of tax $ (396) $ (154) $ (875) $ (307) Total reclassifications $ (993) $ (631) $ (2,386) $ (908) |
Schedule of Accumulated Other Comprehensive Income (Loss) | Balances by classification included within AOCI, net of tax on the accompanying Condensed Consolidated Balance Sheets were as follows (in thousands): Interest Rate Swaps Commodity Derivatives Employee Benefit Plans Total As of December 31, 2019 $ (15,122) $ (456) $ (15,077) $ (30,655) Other comprehensive income (loss) before reclassifications — (220) 55 (165) Amounts reclassified from AOCI 1,087 424 875 2,386 As of June 30, 2020 $ (14,035) $ (252) $ (14,147) $ (28,434) Interest Rate Swaps Commodity Derivatives Employee Benefit Plans Total As of December 31, 2018 $ (17,307) $ 328 $ (9,937) $ (26,916) Other comprehensive income (loss) before reclassifications — (219) — (219) Amounts reclassified from AOCI 1,091 (490) 307 908 As of June 30, 2019 $ (16,216) $ (381) $ (9,630) $ (26,227) |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Defined Benefit Plan [Abstract] | |
Schedule of Net Benefit Costs | The components of net periodic benefit cost for the Defined Benefit Pension Plan were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Service cost $ 1,353 $ 1,345 $ 2,706 $ 2,691 Interest cost 3,356 4,344 6,713 8,687 Expected return on plan assets (5,648) (6,100) (11,296) (12,200) Prior service cost — 7 — 13 Net loss (gain) 2,093 940 4,186 1,881 Net periodic benefit cost $ 1,154 $ 536 $ 2,309 $ 1,072 Defined Benefit Postretirement Healthcare Plan The components of net periodic benefit cost for the Defined Benefit Postretirement Healthcare Plan were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Service cost $ 514 $ 454 $ 1,028 $ 908 Interest cost 413 563 825 1,123 Expected return on plan assets (46) (58) (91) (115) Prior service (benefit) (137) (100) (274) (199) Net loss (gain) 5 — 10 — Net periodic benefit cost $ 749 $ 859 $ 1,498 $ 1,717 Supplemental Non-qualified Defined Benefit and Defined Contribution Plans The components of net periodic benefit cost for the Supplemental Non-qualified Defined Benefit and Defined Contribution Plans were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Service cost $ 1,817 $ 692 $ 447 $ 1,977 Interest cost 275 324 550 648 Prior service cost — 1 — 1 Net loss (gain) 426 134 852 268 Net periodic benefit cost $ 2,518 $ 1,151 $ 1,849 $ 2,894 |
Schedule of Defined Benefit Plans Contributions | Contributions made in the first six months of 2020 and anticipated contributions for 2020 and 2021 are as follows (in thousands): Contributions Made Additional Contributions Contributions Six Months Ended June 30, 2020 Anticipated for 2020 Anticipated for 2021 Defined Benefit Pension Plan $ 12,700 $ — $ 12,700 Non-pension Defined Benefit Postretirement Healthcare Plans $ 2,670 $ 2,671 $ 5,364 Supplemental Non-qualified Defined Benefit and Defined Contribution Plans $ 710 $ 710 $ 1,614 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Investments, All Other Investments [Abstract] | |
Investments | The following table presents the carrying value of our investments (in thousands) as of: June 30, 2020 December 31, 2019 Investment in privately held oil and gas company $ 1,500 $ 8,359 Cash surrender value of life insurance contracts 13,423 13,056 Other investments 515 514 Total investments $ 15,438 $ 21,929 |
Management's Statement_ Reclass
Management's Statement: Reclassification (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Fuel, purchased power and cost of natural gas sold | $ 71,629 | $ 90,200 | $ 259,508 | $ 339,942 |
Operations and maintenance | 117,308 | 124,950 | 242,774 | 248,534 |
Taxes - property and production | 14,381 | 13,142 | 28,499 | 26,467 |
Operating Expenses | $ 259,981 | 279,887 | $ 643,846 | 717,566 |
Scenario, Adjustment | ||||
Fuel, purchased power and cost of natural gas sold | 400 | 1,300 | ||
Operations and maintenance | 0 | (300) | ||
Taxes - property and production | 0 | (200) | ||
Other operating expenses | (400) | (800) | ||
Operating Expenses | $ 0 | $ 0 |
Management's Statement_ Managem
Management's Statement: Management Statement (Details) - USD ($) | Jun. 30, 2020 | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 2,614,496,000 | $ 2,624,423,000 | $ 2,464,069,000 | $ 2,419,998,000 | $ 2,383,702,000 | $ 2,287,423,000 | |
Cumulative Effect, Period of Adoption Adjustment | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ (207,000) | $ (200,000) | $ (3,000) | $ 3,390,000 |
Disaggregation of Revenue (Deta
Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 324,193 | $ 329,746 | $ 854,402 | $ 927,716 |
Total revenues | (326,914) | (333,888) | (863,964) | (931,698) |
Services transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 6,930 | 5,387 | 13,494 | 13,088 |
Services transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 317,263 | 324,359 | 840,908 | 914,628 |
Other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | (2,721) | (4,142) | (9,562) | (3,982) |
Retail - Electric , Natural Gas and Coal | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 269,328 | 268,749 | 722,779 | 784,188 |
Transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 30,654 | 28,347 | 74,623 | 72,432 |
Wholesale | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 4,712 | 8,547 | 12,119 | 19,146 |
Market - off-system sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 1,981 | 2,274 | 4,347 | 6,959 |
Transmission/Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 17,518 | 21,829 | 40,534 | 44,991 |
Inter-company Revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | (38,542) | (26,147) | (77,184) | (54,347) |
Total revenues | 38,934 | 35,688 | 77,967 | 73,559 |
Inter-company Revenues | Services transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | (7,916) | (7,041) | (15,755) | (15,169) |
Inter-company Revenues | Services transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | (30,626) | (19,106) | (61,429) | (39,178) |
Inter-company Revenues | Other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 392 | 9,541 | 783 | 19,212 |
Inter-company Revenues | Retail - Electric , Natural Gas and Coal | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | (7,916) | (7,041) | (15,755) | (15,169) |
Inter-company Revenues | Transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | (138) | (276) | (277) | (708) |
Inter-company Revenues | Wholesale | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | (24,476) | (13,296) | (48,088) | (26,509) |
Inter-company Revenues | Market - off-system sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | (1,580) | (1,335) | (4,219) | (3,559) |
Inter-company Revenues | Transmission/Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | (4,432) | (4,199) | (8,845) | (8,402) |
Electric Utilities | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 161,573 | 164,377 | 335,489 | 347,050 |
Total revenues | (163,200) | (166,354) | (337,339) | (349,281) |
Electric Utilities | Services transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Electric Utilities | Services transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 161,573 | 164,377 | 335,489 | 347,050 |
Electric Utilities | Other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | (1,627) | (1,977) | (1,850) | (2,231) |
Electric Utilities | Retail - Electric , Natural Gas and Coal | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 141,804 | 139,732 | 290,444 | 293,195 |
Electric Utilities | Transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Electric Utilities | Wholesale | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 3,470 | 6,781 | 9,022 | 15,124 |
Electric Utilities | Market - off-system sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 3,538 | 3,448 | 8,405 | 10,140 |
Electric Utilities | Transmission/Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 12,761 | 14,416 | 27,618 | 28,591 |
Gas Utilities | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 160,598 | 164,026 | 515,663 | 576,225 |
Total revenues | (161,110) | (165,469) | (521,883) | (576,549) |
Gas Utilities | Services transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Gas Utilities | Services transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 160,598 | 164,026 | 515,663 | 576,225 |
Gas Utilities | Other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | (512) | (1,443) | (6,220) | (324) |
Gas Utilities | Retail - Electric , Natural Gas and Coal | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 120,594 | 123,630 | 418,841 | 477,905 |
Gas Utilities | Transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 30,792 | 28,623 | 74,900 | 73,140 |
Gas Utilities | Wholesale | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Gas Utilities | Market - off-system sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 23 | 161 | 161 | 378 |
Gas Utilities | Transmission/Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 9,189 | 11,612 | 21,761 | 24,802 |
Power Generation | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 25,718 | 15,062 | 51,185 | 30,531 |
Total revenues | (26,122) | (24,708) | (52,088) | (49,953) |
Power Generation | Services transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Power Generation | Services transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 25,718 | 15,062 | 51,185 | 30,531 |
Power Generation | Other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | (404) | (9,646) | (903) | (19,422) |
Power Generation | Retail - Electric , Natural Gas and Coal | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Power Generation | Transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Power Generation | Wholesale | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 25,718 | 15,062 | 51,185 | 30,531 |
Power Generation | Market - off-system sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Power Generation | Transmission/Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Mining | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 14,846 | 12,428 | 29,249 | 28,257 |
Total revenues | (15,416) | (13,045) | (30,621) | (29,474) |
Mining | Services transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 14,846 | 12,428 | 29,249 | 28,257 |
Mining | Services transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Mining | Other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | (570) | (617) | (1,372) | (1,217) |
Mining | Retail - Electric , Natural Gas and Coal | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 14,846 | 12,428 | 29,249 | 28,257 |
Mining | Transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Mining | Wholesale | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Mining | Market - off-system sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Mining | Transmission/Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 0 | $ 0 | $ 0 | $ 0 |
Business Segment Information_ I
Business Segment Information: Information Relating to Segment Statement of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Segment Reporting Information | |||||||
Revenue from contracts with customers | $ 324,193 | $ 329,746 | $ 854,402 | $ 927,716 | |||
Revenues | (326,914) | (333,888) | (863,964) | (931,698) | |||
Operating income | 66,933 | 54,001 | 220,118 | 214,132 | |||
Interest expense, net | (35,545) | (34,264) | (70,998) | (68,981) | |||
Impairment of investment | 0 | $ (6,900) | $ (20,000) | 0 | (6,859) | 0 | |
Other Nonoperating Income (Expense) Including Allowance For Funds Used During Construction, Equity | (1,863) | 263 | 490 | (526) | |||
Income tax (expense) | (4,831) | (2,307) | (20,833) | (19,570) | |||
Net income | 24,694 | $ 97,224 | 17,693 | $ 107,362 | 121,918 | 125,055 | |
Net income attributable to noncontrolling interest | (3,728) | (3,110) | (7,778) | (6,664) | |||
Net income available for common stock | 20,966 | 14,583 | 114,140 | 118,391 | |||
Inter-company Revenues | |||||||
Segment Reporting Information | |||||||
Revenue from contracts with customers | (38,542) | (26,147) | (77,184) | (54,347) | |||
Revenues | 38,934 | 35,688 | 77,967 | 73,559 | |||
Consolidation, Eliminations | |||||||
Segment Reporting Information | |||||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 | |||
Corporate | |||||||
Segment Reporting Information | |||||||
Operating income | (29) | 102 | 131 | (405) | |||
Electric Utilities | |||||||
Segment Reporting Information | |||||||
Revenue from contracts with customers | 161,573 | 164,377 | 335,489 | 347,050 | |||
Revenues | (163,200) | (166,354) | (337,339) | (349,281) | |||
Operating income | 33,993 | 33,546 | 69,643 | 74,566 | |||
Gas Utilities | |||||||
Segment Reporting Information | |||||||
Revenue from contracts with customers | 160,598 | 164,026 | 515,663 | 576,225 | |||
Revenues | (161,110) | (165,469) | (521,883) | (576,549) | |||
Operating income | 18,209 | 8,557 | 121,106 | 111,871 | |||
Power Generation | |||||||
Segment Reporting Information | |||||||
Revenue from contracts with customers | 25,718 | 15,062 | 51,185 | 30,531 | |||
Revenues | (26,122) | (24,708) | (52,088) | (49,953) | |||
Operating income | 11,402 | 10,156 | 22,751 | 22,123 | |||
Mining | |||||||
Segment Reporting Information | |||||||
Revenue from contracts with customers | 14,846 | 12,428 | 29,249 | 28,257 | |||
Revenues | (15,416) | (13,045) | (30,621) | (29,474) | |||
Operating income | 3,358 | 1,640 | 6,487 | 5,977 | |||
Other Revenues | |||||||
Segment Reporting Information | |||||||
Revenues | (2,721) | (4,142) | (9,562) | (3,982) | |||
Other Revenues | Inter-company Revenues | |||||||
Segment Reporting Information | |||||||
Revenues | 392 | 9,541 | 783 | 19,212 | |||
Other Revenues | Consolidation, Eliminations | |||||||
Segment Reporting Information | |||||||
Revenues | 0 | 0 | 0 | 0 | |||
Other Revenues | Electric Utilities | |||||||
Segment Reporting Information | |||||||
Revenues | (1,627) | (1,977) | (1,850) | (2,231) | |||
Other Revenues | Gas Utilities | |||||||
Segment Reporting Information | |||||||
Revenues | (512) | (1,443) | (6,220) | (324) | |||
Other Revenues | Power Generation | |||||||
Segment Reporting Information | |||||||
Revenues | (404) | (9,646) | (903) | (19,422) | |||
Other Revenues | Mining | |||||||
Segment Reporting Information | |||||||
Revenues | (570) | (617) | (1,372) | (1,217) | |||
External Operating Revenue | |||||||
Segment Reporting Information | |||||||
Revenue from contracts with customers | 324,193 | 329,746 | 854,402 | 927,716 | |||
External Operating Revenue | Electric Utilities | |||||||
Segment Reporting Information | |||||||
Revenue from contracts with customers | 156,197 | 159,140 | 323,700 | 335,803 | |||
External Operating Revenue | Gas Utilities | |||||||
Segment Reporting Information | |||||||
Revenue from contracts with customers | 159,824 | 163,303 | 514,111 | 574,803 | |||
External Operating Revenue | Power Generation | |||||||
Segment Reporting Information | |||||||
Revenue from contracts with customers | 1,242 | 1,765 | 3,097 | 4,022 | |||
External Operating Revenue | Mining | |||||||
Segment Reporting Information | |||||||
Revenue from contracts with customers | 6,930 | 5,538 | 13,494 | 13,088 | |||
External Operating Revenue | Other Revenues | |||||||
Segment Reporting Information | |||||||
Revenues | (2,721) | (4,142) | (9,562) | (3,982) | |||
External Operating Revenue | Other Revenues | Electric Utilities | |||||||
Segment Reporting Information | |||||||
Revenues | (1,627) | (1,977) | (1,850) | (2,231) | |||
External Operating Revenue | Other Revenues | Gas Utilities | |||||||
Segment Reporting Information | |||||||
Revenues | (512) | (1,443) | (6,220) | (324) | |||
External Operating Revenue | Other Revenues | Power Generation | |||||||
Segment Reporting Information | |||||||
Revenues | (349) | (434) | (792) | (870) | |||
External Operating Revenue | Other Revenues | Mining | |||||||
Segment Reporting Information | |||||||
Revenues | (233) | (288) | (700) | (557) | |||
Inter-company Operating Revenue | Electric Utilities | |||||||
Segment Reporting Information | |||||||
Revenue from contracts with customers | 5,376 | 5,237 | 11,789 | 11,247 | |||
Inter-company Operating Revenue | Gas Utilities | |||||||
Segment Reporting Information | |||||||
Revenue from contracts with customers | 774 | 723 | 1,552 | 1,422 | |||
Inter-company Operating Revenue | Power Generation | |||||||
Segment Reporting Information | |||||||
Revenue from contracts with customers | 24,476 | 13,297 | 48,088 | 26,509 | |||
Inter-company Operating Revenue | Mining | |||||||
Segment Reporting Information | |||||||
Revenue from contracts with customers | 7,916 | 6,890 | 15,755 | 15,169 | |||
Inter-company Operating Revenue | Other Revenues | Electric Utilities | |||||||
Segment Reporting Information | |||||||
Revenues | 0 | 0 | 0 | 0 | |||
Inter-company Operating Revenue | Other Revenues | Gas Utilities | |||||||
Segment Reporting Information | |||||||
Revenues | 0 | 0 | 0 | 0 | |||
Inter-company Operating Revenue | Other Revenues | Power Generation | |||||||
Segment Reporting Information | |||||||
Revenues | (55) | (9,212) | (111) | (18,552) | |||
Inter-company Operating Revenue | Other Revenues | Mining | |||||||
Segment Reporting Information | |||||||
Revenues | $ (337) | $ (329) | $ (672) | $ (660) |
Business Segment Information_ S
Business Segment Information: Segment and Corporate Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | $ 7,689,932 | $ 7,558,457 |
Corporate | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 167,350 | 130,245 |
Electric Utilities | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 2,982,841 | 2,900,983 |
Gas Utilities | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 4,052,860 | 4,032,339 |
Power Generation | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 407,107 | 417,715 |
Mining | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | $ 79,774 | $ 77,175 |
Selected Balance Sheet Inform_3
Selected Balance Sheet Information: Accounts Receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Selected Balance Sheet Information [Abstract] | ||||
Accounts receivable, trade | $ 122,650 | $ 144,747 | ||
Unbilled revenue | 55,915 | 113,502 | ||
Less: Allowance for doubtful accounts | (7,585) | (2,444) | $ (5,086) | $ (3,209) |
Accounts receivable, net | $ 170,980 | $ 255,805 |
Selected Balance Sheet Inform_4
Selected Balance Sheet Information: Changes to Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounts Receivable, Allowance for Credit Loss, Current | $ 7,585 | $ 7,585 | $ 5,086 | $ 2,444 | $ 3,209 |
Accounts Receivable, Credit Loss Expense (Reversal) | 6,715 | 4,913 | |||
Accounts Receivable, Allowance for Credit Loss, Recovery | 2,203 | 1,870 | |||
Accounts Receivable, Allowance for Credit Loss, Writeoff | (3,777) | $ (4,906) | |||
Adjustment Related to COVID-19 | |||||
Accounts Receivable, Credit Loss Expense (Reversal) | $ 1,500 | $ 2,000 |
Selected Balance Sheet Inform_5
Selected Balance Sheet Information: Materials and Supplies (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Selected Balance Sheet Information [Abstract] | ||
Materials and supplies | $ 92,284 | $ 82,809 |
Fuel - Electric Utilities | 3,574 | 2,425 |
Natural gas in storage | 10,129 | 31,938 |
Total materials, supplies and fuel | $ 105,987 | $ 117,172 |
Selected Balance Sheet Inform_6
Selected Balance Sheet Information: Accrued Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Selected Balance Sheet Information [Abstract] | ||
Accrued employee compensation, benefits and withholdings | $ 59,701 | $ 62,837 |
Accrued property taxes | 36,832 | 44,547 |
Customer deposits and prepayments | 45,143 | 54,728 |
Accrued interest | 31,757 | 31,868 |
Other (none of which is individually significant) | 28,234 | 32,787 |
Total accrued liabilities | $ 201,667 | $ 226,767 |
Regulatory Matters (Details)
Regulatory Matters (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Regulatory assets | ||
Regulatory assets | $ 272,312 | $ 271,344 |
Less current regulatory assets | (51,745) | (43,282) |
Regulatory assets, non-current | 220,567 | 228,062 |
Regulatory liabilities | ||
Regulatory liabilities | 565,821 | 536,652 |
Less current regulatory liabilities | (59,428) | (33,507) |
Regulatory liabilities, non-current | 506,393 | 503,145 |
Deferred energy and gas costs | ||
Regulatory liabilities | ||
Regulatory liabilities | 28,279 | 17,278 |
Employee benefit plans | ||
Regulatory liabilities | ||
Regulatory liabilities | 41,025 | 43,349 |
Cost of removal | ||
Regulatory liabilities | ||
Regulatory liabilities | 168,137 | 166,727 |
Excess deferred income taxes | ||
Regulatory liabilities | ||
Regulatory liabilities | 288,796 | 285,438 |
TCJA revenue reduction | ||
Regulatory liabilities | ||
Regulatory liabilities | 3,027 | 3,418 |
Other regulatory liabilities | ||
Regulatory liabilities | ||
Regulatory liabilities | 36,557 | 20,442 |
Deferred energy and gas costs | ||
Regulatory assets | ||
Regulatory assets | 36,900 | 34,088 |
Deferred gas cost adjustments | ||
Regulatory assets | ||
Regulatory assets | 226 | 1,540 |
Gas price derivatives | ||
Regulatory assets | ||
Regulatory assets | 662 | 3,328 |
Deferred taxes on AFUDC | ||
Regulatory assets | ||
Regulatory assets | 7,715 | 7,790 |
Employee benefit plans | ||
Regulatory assets | ||
Regulatory assets | 115,416 | 115,900 |
Environmental | ||
Regulatory assets | ||
Regulatory assets | 1,426 | 1,454 |
Loss on reacquired debt | ||
Regulatory assets | ||
Regulatory assets | 23,820 | 24,777 |
Renewable energy standard adjustment | ||
Regulatory assets | ||
Regulatory assets | 1 | 1,622 |
Deferred taxes on flow through accounting | ||
Regulatory assets | ||
Regulatory assets | 44,940 | 41,220 |
Decommissioning costs | ||
Regulatory assets | ||
Regulatory assets | 9,854 | 10,670 |
Gas supply contract termination | ||
Regulatory assets | ||
Regulatory assets | 5,521 | 8,485 |
Other regulatory assets | ||
Regulatory assets | ||
Regulatory assets | $ 25,831 | $ 20,470 |
Regulatory Matters_ Rate Review
Regulatory Matters: Rate Review (Details) $ in Thousands | Jun. 01, 2020USD ($)utilityMW | May 19, 2020USD ($) | Feb. 01, 2019USD ($)utility |
Federal Energy Regulatory Commission (FERC) | Black Hills Wyoming and Wyoming Electric | |||
Public Utilities, General Disclosures [Line Items] | |||
Pending FERC Approval - Number of Megawatts Capacity to be Purchased and Delivered Through Intercompany Agreement | MW | 60 | ||
Unrecorded Unconditional Purchase Obligation, Term | 11 years | ||
Rate Review Filed with the Regulatory Agency | Nebraska Publc Service Commission (NPSC) | Black Hills Energy, Nebraska Gas | |||
Public Utilities, General Disclosures [Line Items] | |||
Public Utilities, Number of Gas Distribution Territories Consolidating | utility | 2 | ||
Public Utilities, Requested Rate Increase (Decrease), Amount | $ (17,000) | ||
Public Utilities, Requested Equity Capital Structure, Percentage | 50.00% | ||
Public Utilities, Requested Debt Capital Structure, Percentage | 50.00% | ||
Public Utilities, Requested Return on Equity, Percentage | 10.00% | ||
Rate Review Filed with the Regulatory Agency | Colorado Public Utilities Commission (CPUC) | Black Hills Energy, Colorado Gas | |||
Public Utilities, General Disclosures [Line Items] | |||
Public Utilities, Number of Gas Distribution Territories Consolidating | utility | 2 | ||
Public Utilities, Requested Rate Increase (Decrease), Amount | $ (2,500) | ||
Public Utilities, Approved Rate Increase (Decrease), Amount | $ 600 | ||
Public Utilities, Approved Return on Equity, Percentage | 9.20% |
Earnings Per Share_ Earnings Pe
Earnings Per Share: Earnings Per Share Reconciliation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Net income available for common stock | $ 20,966 | $ 14,583 | $ 114,140 | $ 118,391 |
Weighted average shares - basic (in shares) | 62,573 | 60,467 | 62,175 | 60,195 |
Dilutive effect of: | ||||
Equity compensation (in shares) | 44 | 139 | 55 | 138 |
Weighted average shares - diluted (in shares) | 62,617 | 60,606 | 62,230 | 60,333 |
Earnings (loss) per share, Basic (usd per share) | $ 0.34 | $ 0.24 | $ 1.84 | $ 1.97 |
Earnings (loss) per share, Diluted (usd per share) | $ 0.33 | $ 0.24 | $ 1.83 | $ 1.96 |
Earnings Per Share_ Anti-diluti
Earnings Per Share: Anti-dilutive shares (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive shares (in shares) | 105 | 0 | 62 | 0 |
Equity compensation - (in shares) | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive shares (in shares) | 29 | 0 | 26 | 0 |
Restricted Stock (in shares) | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive shares (in shares) | 76 | 0 | 36 | 0 |
Notes Payable, Current Maturi_3
Notes Payable, Current Maturities and Debt: Schedule of Short-term Debt and Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Short-term Debt [Line Items] | |||
Notes payable | $ 0 | $ 349,500 | |
Letters of Credit | 11,999 | 30,274 | |
Net (payments) borrowings of short-term debt | (349,500) | $ (83,120) | |
Commercial Paper | |||
Short-term Debt [Line Items] | |||
Notes payable | 0 | 349,500 | |
Revolving Credit Facility | |||
Short-term Debt [Line Items] | |||
Notes payable | 0 | 0 | |
Letters of Credit | 11,999 | $ 30,274 | |
Line of Credit Facility, Current Borrowing Capacity | $ 750,000 |
Notes Payable, Current Maturi_4
Notes Payable, Current Maturities and Debt: Debt Covenants (Details) | Jun. 30, 2020 |
Line of Credit Facility [Line Items] | |
Ratio of Indebtedness to Net Capital | 0.587 |
Maximum | |
Line of Credit Facility [Line Items] | |
Consolidated Indebtedness to Capitalization Ratio | 0.65 |
Notes Payable, Current Maturi_5
Notes Payable, Current Maturities and Debt: Debt Offering (Details) - Senior Unsecured Notes Due 2030 $ in Thousands | Jun. 17, 2020USD ($) |
Debt Instrument [Line Items] | |
Proceeds from Issuance of Debt | $ 400,000 |
Debt Instrument, Interest Rate, Stated Percentage | 2.50% |
Long-term Debt, Term | 10 years |
Notes Payable, Current Maturi_6
Notes Payable, Current Maturities and Debt: Long-Term Debt (Details) $ in Millions | Mar. 24, 2020USD ($) |
Electric Utilities | South Dakota Electric | Bonds Due 2024 | |
Extinguishment of Debt, Amount | $ 2.9 |
Equity_ Equity Issuance (Detail
Equity: Equity Issuance (Details) - Private Placement $ / shares in Units, shares in Millions, $ in Millions | Feb. 27, 2020USD ($)$ / sharesshares |
Sale of Stock, Number of Shares Issued in Transaction | shares | 1.2 |
Sale of Stock, Price Per Share | $ / shares | $ 81.77 |
Sale of Stock, Consideration Received on Transaction | $ 99 |
Payments of Stock Issuance Costs | $ 1 |
Equity_ At-the-Market Equity Of
Equity: At-the-Market Equity Offering Program (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2019 | Aug. 03, 2020 | |
At The Market Equity Offering Program Authorized Aggregate Value | $ 300,000 | |||||
Issuance costs | $ 79 | $ 967 | $ 492 | $ 289 | ||
Subsequent Event | ||||||
At The Market Equity Offering Program Authorized Aggregate Value | $ 400,000 | |||||
Common Stock | ||||||
At The Market Equity Offering Program Shares Issued | 700,000 | 900,000 | ||||
At The Market Equity Program Proceeds from Sale of Stock | $ 49,000 | $ 69,000 | ||||
Issuance costs | $ 500 | $ 700 |
Risk Management and Derivativ_3
Risk Management and Derivatives: Credit Risk (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | |
Accounts Receivable, Credit Loss Expense (Reversal) | $ 6,715 | $ 4,913 | |
Adjustment Related to COVID-19 | |||
Accounts Receivable, Credit Loss Expense (Reversal) | $ 1,500 | $ 2,000 |
Risk Management and Derivativ_4
Risk Management and Derivatives: Utilities (Details) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020USD ($)MMBTUmW | Dec. 31, 2019MMBTUmW | |
Derivative [Line Items] | ||
Credit Risk Derivative Liabilities, at Fair Value | $ | $ 500 | |
Natural Gas, Distribution | Cash Flow Hedging | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 1,776,900 | |
Natural Gas, Distribution | Natural gas futures purchased | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 660,000 | 1,450,000 |
Derivative, Remaining Maturity | 9 months | 12 months |
Natural Gas, Distribution | Natural gas options purchased, net | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 950,000 | 3,240,000 |
Derivative, Remaining Maturity | 9 months | 3 months |
Natural Gas, Distribution | Natural gas basis swaps purchased | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 520,000 | 1,290,000 |
Derivative, Remaining Maturity | 6 months | 12 months |
Natural Gas, Distribution | Natural gas over-the-counter swaps, net | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 6,480,000 | 4,600,000 |
Derivative, Remaining Maturity | 23 months | 24 months |
Natural Gas, Distribution | Natural gas physical contracts, net | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 8,085,376 | 13,548,235 |
Derivative, Remaining Maturity | 9 months | 12 months |
Electricity | Electric wholesale contracts | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | mW | 141,225 | 0 |
Derivative, Remaining Maturity | 6 months | 0 months |
Risk Management and Derivativ_5
Risk Management and Derivatives: Derivatives by Balance Sheet Classification (Details) - Commodity Contract - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value Hedges, Net | $ (175) | $ (515) |
Designated as Hedging Instrument | Derivative assets — current | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value Hedge Assets | 66 | 1 |
Designated as Hedging Instrument | Other assets, non-current | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value Hedge Assets | 83 | 3 |
Designated as Hedging Instrument | Derivative liabilities — current | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value Hedge Liabilities | (324) | (490) |
Designated as Hedging Instrument | Other deferred credits and other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value Hedge Liabilities | 0 | (29) |
Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value Hedges, Net | 1,394 | (1,484) |
Not Designated as Hedging Instrument | Derivative assets — current | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value Hedge Assets | 1,515 | 341 |
Not Designated as Hedging Instrument | Other assets, non-current | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value Hedge Assets | 191 | 2 |
Not Designated as Hedging Instrument | Derivative liabilities — current | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value Hedge Liabilities | (297) | (1,764) |
Not Designated as Hedging Instrument | Other deferred credits and other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value Hedge Liabilities | $ (15) | $ (63) |
Risk Management and Derivativ_6
Risk Management and Derivatives: Derivatives Designated as Hedges (Details) - Cash Flow Hedging - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Derivative [Line Items] | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ (783) | $ (630) | $ (1,982) | $ (789) |
Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 724 | 112 | 1,694 | 505 |
Natural Gas, Distribution | ||||
Derivative [Line Items] | ||||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | 200 | |||
Interest rate swaps | Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 713 | 713 | 1,426 | 1,426 |
Commodity Contract | Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 11 | (601) | 268 | (921) |
Interest expense incurred net of amounts capitalized (including amortization of debt issuance costs, premiums and discounts) | Interest rate swaps | ||||
Derivative [Line Items] | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (713) | (713) | (1,426) | (1,426) |
Cost of Sales | Commodity Contract | ||||
Derivative [Line Items] | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ (70) | $ 83 | $ (556) | $ 637 |
Risk Management and Derivativ_7
Risk Management and Derivatives: Derivatives Not Designated as Hedge Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Derivative [Line Items] | |||||
Regulatory assets | $ 272,312 | $ 272,312 | $ 271,344 | ||
Gas price derivatives | |||||
Derivative [Line Items] | |||||
Regulatory assets | 662 | 662 | $ 3,328 | ||
Not Designated as Hedging Instrument | |||||
Derivative [Line Items] | |||||
Derivative, Gain (Loss) on Derivative, Net | 245 | $ (1,185) | 2,373 | $ (1,160) | |
Not Designated as Hedging Instrument | Cost of Sales | Electricity | |||||
Derivative [Line Items] | |||||
Derivative, Gain (Loss) on Derivative, Net | (204) | 0 | 1,158 | 0 | |
Not Designated as Hedging Instrument | Cost of Sales | Natural Gas, Distribution | |||||
Derivative [Line Items] | |||||
Derivative, Gain (Loss) on Derivative, Net | $ 449 | $ (1,185) | $ 1,215 | $ (1,160) |
Fair Value Measurements_ Schedu
Fair Value Measurements: Schedule of Fair Values (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
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 | $ (417) | $ (1,085) |
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | (917) | (2,909) |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets, Total | 1,855 | 348 |
Derivative Liabilities, Total | 636 | 2,345 |
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, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets, Total | 2,272 | 1,433 |
Derivative Liabilities, Total | 1,553 | 5,254 |
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 |
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 | (417) | (1,085) |
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | (917) | (2,909) |
Gas Utilities | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets, Commodity Derivatives | 697 | 348 |
Derivative Liabilities, Fair Value Disclosure | 636 | 2,345 |
Gas Utilities | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets, Commodity Derivatives | 0 | 0 |
Derivative Liabilities, Fair Value Disclosure | 0 | 0 |
Gas Utilities | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets, Commodity Derivatives | 1,114 | 1,433 |
Derivative Liabilities, Fair Value Disclosure | 1,553 | 5,254 |
Gas Utilities | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets, Commodity Derivatives | 0 | 0 |
Derivative Liabilities, Fair Value Disclosure | 0 | $ 0 |
Electric 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 | |
Electric Utilities | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets, Commodity Derivatives | 1,158 | |
Electric Utilities | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets, Commodity Derivatives | 0 | |
Electric Utilities | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets, Commodity Derivatives | 1,158 | |
Electric Utilities | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets, Commodity Derivatives | $ 0 |
Fair Value Measurements_ Other
Fair Value Measurements: Other Fair Value Measurements (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt | $ 3,537,194 | $ 3,145,839 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term Debt, Fair Value | $ 4,051,912 | $ 3,479,367 |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss): Reclassification Out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Condensed Statement of Income Captions [Line Items] | ||||||
Interest Expense | $ 35,765 | $ 34,660 | $ 71,546 | $ 69,676 | ||
Fuel, purchased power and cost of natural gas sold | 71,629 | 90,200 | 259,508 | 339,942 | ||
Operations and maintenance | 117,308 | 124,950 | 242,774 | 248,534 | ||
Income before Income Taxes | 29,525 | 20,000 | 142,751 | 144,625 | ||
Income tax benefit (expense) | (4,831) | (2,307) | (20,833) | (19,570) | ||
Net income (loss) | 24,694 | $ 97,224 | 17,693 | $ 107,362 | 121,918 | 125,055 |
Reclassification out of Accumulated Other Comprehensive Income | ||||||
Condensed Statement of Income Captions [Line Items] | ||||||
Net income (loss) | (993) | (631) | (2,386) | (908) | ||
Cash Flow Hedging | Reclassification out of Accumulated Other Comprehensive Income | ||||||
Condensed Statement of Income Captions [Line Items] | ||||||
Income before Income Taxes | (783) | (630) | (1,982) | (789) | ||
Income tax benefit (expense) | 186 | 153 | 471 | 188 | ||
Net income (loss) | (597) | (477) | (1,511) | (601) | ||
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Cost | Reclassification out of Accumulated Other Comprehensive Income | ||||||
Condensed Statement of Income Captions [Line Items] | ||||||
Operations and maintenance | 25 | 20 | 55 | 39 | ||
Accumulated Defined Benefit Plans Adjustment, Net Unamortized Gain (Loss) | Reclassification out of Accumulated Other Comprehensive Income | ||||||
Condensed Statement of Income Captions [Line Items] | ||||||
Operations and maintenance | (597) | (221) | (1,194) | (441) | ||
Accumulated Defined Benefit Plans Adjustment | Reclassification out of Accumulated Other Comprehensive Income | ||||||
Condensed Statement of Income Captions [Line Items] | ||||||
Income before Income Taxes | (572) | (201) | (1,139) | (402) | ||
Income tax benefit (expense) | 176 | 47 | 264 | 95 | ||
Net income (loss) | (396) | (154) | (875) | (307) | ||
Interest rate swaps | Cash Flow Hedging | Reclassification out of Accumulated Other Comprehensive Income | ||||||
Condensed Statement of Income Captions [Line Items] | ||||||
Interest Expense | (713) | (713) | (1,426) | (1,426) | ||
Commodity Contract | Cash Flow Hedging | Reclassification out of Accumulated Other Comprehensive Income | ||||||
Condensed Statement of Income Captions [Line Items] | ||||||
Fuel, purchased power and cost of natural gas sold | $ (70) | $ 83 | $ (556) | $ 637 |
Other Comprehensive Income (L_4
Other Comprehensive Income (Loss): Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Period Start | $ (30,655) | $ (26,916) |
Accumulated Other Comprehensive Income (Loss), Net of Tax, Period End | (28,434) | (26,227) |
Accumulated Defined Benefit Plans Adjustment | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Period Start | (15,077) | (9,937) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 55 | 0 |
Accumulated Other Comprehensive Income (Loss), Net of Tax, Period End | (14,147) | (9,630) |
Accumulated Defined Benefit Plans Adjustment | Reclassification out of Accumulated Other Comprehensive Income | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 875 | 307 |
Accumulated Other Comprehensive Income (loss) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (165) | (219) |
Accumulated Other Comprehensive Income (loss) | Reclassification out of Accumulated Other Comprehensive Income | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 2,386 | 908 |
Interest Rate Swaps | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Period Start | (15,122) | (17,307) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 0 | 0 |
Accumulated Other Comprehensive Income (Loss), Net of Tax, Period End | (14,035) | (16,216) |
Interest Rate Swaps | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | Reclassification out of Accumulated Other Comprehensive Income | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 1,087 | 1,091 |
Commodity Contract | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Period Start | (456) | 328 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (220) | (219) |
Accumulated Other Comprehensive Income (Loss), Net of Tax, Period End | (252) | (381) |
Commodity Contract | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | Reclassification out of Accumulated Other Comprehensive Income | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | $ 424 | $ (490) |
Employee Benefit Plans_ Change
Employee Benefit Plans: Change in Accounting Principle (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Other income (expense), net | $ (1,863) | $ 263 | $ 490 | $ (526) |
Income tax (expense) | (4,831) | (2,307) | (20,833) | (19,570) |
Net income available for common stock | $ 20,966 | $ 14,583 | 114,140 | $ 118,391 |
Cumulative Effect, Period of Adoption Adjustment | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Other income (expense), net | 600 | |||
Income tax (expense) | 200 | |||
Net income available for common stock | $ 400 |
Employee Benefit Plans_ Funding
Employee Benefit Plans: Funding Status of Employee Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Benefit plan liabilities | $ 142,580 | $ 142,580 | $ 154,472 | ||
Other income (expense), net | (1,863) | $ 263 | 490 | $ (526) | |
Pension Plan | |||||
Benefit plan liabilities | $ 50,000 | $ 50,000 | $ 51,000 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Defined Benefit Pension Plans | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||
Service cost | $ 1,353 | $ 1,345 | $ 2,706 | $ 2,691 |
Interest cost | 3,356 | 4,344 | 6,713 | 8,687 |
Expected return on plan assets | (5,648) | (6,100) | (11,296) | (12,200) |
Prior service cost (benefit) | 0 | 7 | 0 | 13 |
Net loss (gain) | 2,093 | 940 | 4,186 | 1,881 |
Net periodic benefit cost | 1,154 | 536 | 2,309 | 1,072 |
Payment for Pension and Other Postretirement Benefits [Abstract] | ||||
Contributions by Employer | 12,700 | |||
Estimated Future Employer Contributions in Current Fiscal Year | 0 | 0 | ||
Estimated Future Employer Contributions in Next Fiscal Year | 12,700 | 12,700 | ||
Other Postretirement Benefits Plan | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||
Service cost | 514 | 454 | 1,028 | 908 |
Interest cost | 413 | 563 | 825 | 1,123 |
Expected return on plan assets | (46) | (58) | (91) | (115) |
Prior service cost (benefit) | (137) | (100) | (274) | (199) |
Net loss (gain) | 5 | 0 | 10 | 0 |
Net periodic benefit cost | 749 | 859 | 1,498 | 1,717 |
Payment for Pension and Other Postretirement Benefits [Abstract] | ||||
Contributions by Employer | 2,670 | |||
Estimated Future Employer Contributions in Current Fiscal Year | 2,671 | 2,671 | ||
Estimated Future Employer Contributions in Next Fiscal Year | 5,364 | 5,364 | ||
Supplemental Non-qualified Defined Benefit and Defined Contribution Plans | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||
Service cost | 1,817 | 692 | 447 | 1,977 |
Interest cost | 275 | 324 | 550 | 648 |
Prior service cost (benefit) | 0 | 1 | 0 | 1 |
Net loss (gain) | 426 | 134 | 852 | 268 |
Net periodic benefit cost | 2,518 | $ 1,151 | 1,849 | $ 2,894 |
Payment for Pension and Other Postretirement Benefits [Abstract] | ||||
Contributions by Employer | 710 | |||
Estimated Future Employer Contributions in Current Fiscal Year | 710 | 710 | ||
Estimated Future Employer Contributions in Next Fiscal Year | $ 1,614 | $ 1,614 |
Commitments and Contingencies_
Commitments and Contingencies: Future Purchase Agreement - Related Party (Details) | Jul. 01, 2020MW |
Colorado Electric | City of Colorado Springs | Subsequent Event | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Number of Megawatts Capacity Purchased | 60 |
Income Taxes_ CARES Act (Detail
Income Taxes: CARES Act (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Income Tax Disclosure [Abstract] | |
Amount of Payroll Tax (Social Security Employment Tax) Deferral Allowed Under the CARES Act | $ 2,900 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Income tax benefit (expense) | $ (4,831) | $ (2,307) | $ (20,833) | $ (19,570) |
Effective Tax Rate | 16.40% | 11.50% | 14.60% | 13.50% |
Investments (Details)
Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Feb. 28, 2018 | |
Assets used to Acquire Other Investments | $ 28,000 | |||||||
Impairment of investment | $ 0 | $ 6,900 | $ 20,000 | $ 0 | $ 6,859 | $ 0 | ||
Investments | 15,438 | 15,438 | $ 21,929 | |||||
Investment in privately held oil and gas company | ||||||||
Investments | 1,500 | 1,500 | 8,359 | |||||
Cash surrender value of life insurance contracts | ||||||||
Investments | 13,423 | 13,423 | 13,056 | |||||
Other investments | ||||||||
Investments | $ 515 | $ 515 | $ 514 | |||||
Valuation, Income Approach | ||||||||
Discount Rate Used in Valuation of Fair Value of Oil and Gas Reserve Quantities | 10.00% |