Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 31, 2017 | Jun. 30, 2016 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | BLACK HILLS POWER INC | ||
Entity Central Index Key | 12,400 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Amendment Flag | false | ||
Document Fiscal Year End Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Common Stock Share Outstanding | 23,416,396 | ||
Entity Well-known seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Public Float | $ 0 |
Statements of Income
Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | |||
Revenue | $ 267,632 | $ 277,864 | $ 268,488 |
Operating expenses: | |||
Fuel and purchased power | 75,026 | 83,339 | 93,976 |
Operations and maintenance | 66,384 | 68,088 | 70,356 |
Depreciation and amortization | 34,030 | 32,552 | 29,100 |
Taxes - property | 6,612 | 5,971 | 5,942 |
Total operating expenses | 182,052 | 189,950 | 199,374 |
Operating income | 85,580 | 87,914 | 69,114 |
Other income (expense): | |||
Interest expense | (22,908) | (22,337) | (20,569) |
AFUDC - borrowed | 1,140 | 506 | 248 |
Interest income | 1,576 | 657 | 619 |
AFUDC - equity | 2,165 | 918 | 519 |
Other expense | (185) | (117) | (105) |
Other income | 298 | 233 | 248 |
Total other income (expense) | (17,914) | (20,140) | (19,040) |
Income before income taxes | 67,666 | 67,774 | 50,074 |
Income tax expense | (22,528) | (22,600) | (16,512) |
Net income | $ 45,138 | $ 45,174 | $ 33,562 |
Statements of Comprehensive Inc
Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 45,138 | $ 45,174 | $ 33,562 |
Other comprehensive income (loss), net of tax: | |||
Benefit plan liability adjustments - net gain (loss) (net of tax of $27, $(36) and $189, respectively) | (50) | 68 | (351) |
Reclassification adjustment of benefit plan liability - net gain (loss) (net of tax of $(29), $(33) and $(16), respectively) | 53 | 61 | 29 |
Reclassification adjustment of cash flow hedges settled and included in net income (loss) (net of tax of $(22), $319 and $(364), respectively) | 42 | 383 | (300) |
Other comprehensive income (loss), net of tax | 45 | 512 | (622) |
Comprehensive income (loss), net of tax | $ 45,183 | $ 45,686 | $ 32,940 |
Statements of Comprehensive In4
Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Benefit plan liability adjustments - net gain (loss), Tax | $ 27 | $ (36) | $ 189 |
Reclassification adjustment of benefit plan liability - net gain (loss) tax | (29) | (33) | (16) |
Reclassification adjustment of cash flow hedges settled and included in net income (loss), Tax | $ (22) | $ 319 | $ (364) |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 234 | $ 297 |
Receivables - customers, net | 30,614 | 27,856 |
Receivables - affiliates | 9,526 | 6,734 |
Other receivables, net | 351 | 236 |
Money pool notes receivable | 28,409 | 76,813 |
Materials, supplies and fuel | 22,389 | 24,282 |
Regulatory assets, current | 18,119 | 14,096 |
Other current assets | 3,876 | 43,118 |
Total current assets | 113,518 | 193,432 |
Investments | 4,841 | 4,725 |
Property, plant and equipment | 1,236,387 | 1,166,126 |
Less accumulated depreciation and amortization | (338,828) | (326,074) |
Total property, plant and equipment, net | 897,559 | 840,052 |
Other assets: | ||
Regulatory assets, non-current | 74,015 | 71,717 |
Other, non-current assets | 3,816 | 152 |
Total other assets | 77,831 | 71,869 |
TOTAL ASSETS | 1,093,749 | 1,110,078 |
Current liabilities: | ||
Accounts payable | 14,158 | 14,472 |
Accounts payable - affiliates | 31,799 | 30,582 |
Accrued liabilities | 37,436 | 69,454 |
Regulatory liabilities, current | 84 | 0 |
Total current liabilities | 83,477 | 114,508 |
Long-term debt | 339,756 | 339,616 |
Deferred credits and other liabilities: | ||
Deferred income tax liabilities, net | 211,443 | 188,961 |
Regulatory liabilities, non-current | 53,866 | 51,583 |
Benefit plan liabilities | 19,544 | 20,033 |
Other, non-current liabilities | 1,001 | 3,398 |
Total deferred credits and other liabilities | 285,854 | 263,975 |
Commitments and contingencies (Notes 4, 8, 9 and 11) | ||
Stockholder’s equity: | ||
Common stock $1 par value; 50,000,000 shares authorized; 23,416,396 shares issued | 23,416 | 23,416 |
Additional paid-in capital | 39,575 | 39,575 |
Retained earnings | 322,933 | 330,295 |
Accumulated other comprehensive loss | (1,262) | (1,307) |
Total stockholder’s equity | 384,662 | 391,979 |
TOTAL LIABILITIES AND STOCKHOLDER’S EQUITY | $ 1,093,749 | $ 1,110,078 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
Common Stock, Par Value Per Share (usd per share) | $ 1 | $ 1 |
Common Stock, Shares Authorized | 50,000,000 | 50,000,000 |
Common Stock, Shares, Issued | 23,416,396 | 23,416,396 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating activities: | |||
Net income | $ 45,138 | $ 45,174 | $ 33,562 |
Adjustments to reconcile net income to net cash provided by operating activities - | |||
Depreciation and amortization | 34,030 | 32,552 | 29,100 |
Deferred income taxes | 20,690 | 7,690 | 16,518 |
AFUDC - equity | (2,165) | (918) | (519) |
Employee benefits | 1,770 | 2,403 | 1,295 |
Other adjustments | 391 | 232 | (2,330) |
Change in operating assets and liabilities - | |||
Accounts receivable and other current assets | (3,963) | (3,223) | (10,412) |
Accounts payable and other current liabilities | 6,175 | 20,455 | 7,210 |
Contributions to defined benefit pension plan | (820) | 0 | (1,696) |
Regulatory assets | (4,023) | (3,839) | (5,366) |
Regulatory liabilities | 0 | (2,479) | 2,479 |
Other operating activities | (8,339) | (5,680) | (6,624) |
Net cash provided by operating activities | 88,884 | 92,367 | 63,217 |
Investing activities: | |||
Property, plant and equipment additions | (84,750) | (56,795) | (82,826) |
Notes receivable from affiliate companies, net | (4,095) | (36,687) | (51,334) |
Other investing activities | (102) | (128) | (154) |
Net cash (used in) investing activities | (88,947) | (93,610) | (134,314) |
Financing activities: | |||
Long-term debt - repayments | 0 | 0 | (12,200) |
Long-term debt - issuance | 0 | 0 | 85,000 |
Other financing activities | 0 | (2) | (961) |
Net cash provided by (used in) financing activities | 0 | (2) | 71,839 |
Net change in cash and cash equivalents | (63) | (1,245) | 742 |
Cash and cash equivalents: | |||
Beginning of year | 297 | 1,542 | 800 |
End of year | $ 234 | $ 297 | $ 1,542 |
Statements of Common Stockholde
Statements of Common Stockholder's Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Common Stock, Shares, Issued - Beginning Balance at Dec. 31, 2013 | 23,416,000 | ||||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |||||
Stock Issued During Period, Shares, New Issues | 0 | ||||
Common Stock, Shares, Issued - Ending Balance at Dec. 31, 2014 | 23,416,000 | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Dec. 31, 2013 | $ 23,416 | $ 39,575 | $ 280,060 | $ (1,197) | |
Stockholders' Equity Attributable to Parent [Abstract] | |||||
Stock Issued During Period, Value, New Issues | 0 | 0 | |||
Net income | $ 33,562 | 33,562 | |||
Non-cash Dividend to Parent Company | 0 | ||||
Other Comprehensive Income (Loss), Net of Tax | (622) | (622) | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Dec. 31, 2014 | $ 374,794 | $ 23,416 | 39,575 | 313,622 | (1,819) |
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |||||
Stock Issued During Period, Shares, New Issues | 0 | ||||
Common Stock, Shares, Issued - Ending Balance at Dec. 31, 2015 | 23,416,396 | 23,416,000 | |||
Stockholders' Equity Attributable to Parent [Abstract] | |||||
Stock Issued During Period, Value, New Issues | $ 0 | 0 | |||
Net income | $ 45,174 | 45,174 | |||
Non-cash Dividend to Parent Company | (28,501) | ||||
Other Comprehensive Income (Loss), Net of Tax | 512 | 512 | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Dec. 31, 2015 | $ 391,979 | $ 23,416 | 39,575 | 330,295 | (1,307) |
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |||||
Stock Issued During Period, Shares, New Issues | 0 | ||||
Common Stock, Shares, Issued - Ending Balance at Dec. 31, 2016 | 23,416,396 | 23,416,000 | |||
Stockholders' Equity Attributable to Parent [Abstract] | |||||
Stock Issued During Period, Value, New Issues | $ 0 | 0 | |||
Net income | $ 45,138 | 45,138 | |||
Non-cash Dividend to Parent Company | (52,500) | ||||
Other Comprehensive Income (Loss), Net of Tax | 45 | 45 | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Dec. 31, 2016 | $ 384,662 | $ 23,416 | $ 39,575 | $ 322,933 | $ (1,262) |
Business Description and Summar
Business Description and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Description and Significant Accounting Policies | BUSINESS DESCRIPTION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Business Description Black Hills Power, Inc., doing business as Black Hills Energy - South Dakota (the Company, “we,” “us” or “our”) is a regulated electric utility serving customers in South Dakota, Wyoming and Montana. We are a wholly-owned subsidiary of BHC or the Parent, a public registrant listed on the New York Stock Exchange. Basis of Presentation The financial statements include the accounts of Black Hills Power, Inc. and also our ownership interests in the assets, liabilities and expenses of our jointly owned facilities (Note 3 ) and are prepared in accordance with GAAP. Revisions Certain revisions have been made to prior years’ financial information to conform to the current year presentation. We revised our presentation of cash and book overdrafts and certain cash transactions processed on behalf of affiliates. For accounts with the same financial institution where there is a banking arrangement that clears payments with balances in other bank accounts, book overdrafts are presented on a combined basis by bank as cash and cash equivalents. Cash collected or disbursed on behalf of affiliates is presented as Receivables - affiliates or Accounts Payable - affiliates. Prior year amounts were corrected to conform to the current year presentation, which decreased cash and cash equivalents by $7.3 million , $5.1 million and $1.5 million as of December 31, 2015, December 31, 2014 and December 31, 2013, respectively; increased Receivables - affiliates by $1.0 million , increased Accounts payable - affiliates by $0.6 million and decreased Accounts payable by $6.9 million as of December 31, 2015. It also decreased net cash flows provided by operations by $2.2 million and $3.6 million for the years ended December 31, 2015 and 2014 respectively. We assessed the materiality of these changes, taking into account quantitative and qualitative factors, and determined them to be immaterial to the balance sheet as of December 31, 2015 and to the statements of cash flows for the years ended December 31, 2015 and 2014. There is no impact to the Statements of Income, Statements of Comprehensive Income (Loss) or Statements of Common Stockholder’s Equity for any period reported. Use of Estimates and Basis of Presentation The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash Equivalents We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. Regulatory Accounting Our regulated electric operations are subject to regulation by various state and federal agencies. The accounting policies followed are generally subject to the Uniform System of Accounts of FERC. Our regulated utility operations follow accounting standards for regulated operations and our financial statements reflect the effects of the different rate making principles followed by the various jurisdictions regulating our electric operations. If rate recovery becomes unlikely or uncertain due to competition or regulatory action, these accounting standards may no longer apply to our regulated operations. In the event we determine that we no longer meet the criteria for following accounting standards for regulated operations, the accounting impact to us could be an extraordinary non-cash charge to operations in an amount that could be material. Regulatory assets are included in Regulatory assets, current and Regulatory assets, non-current on the accompanying Balance Sheets. Regulatory liabilities are included in Regulatory liabilities, current and Regulatory liabilities, non-current on the accompanying Balance Sheets. We had the following regulatory assets and liabilities as follows as of December 31 (in thousands): Maximum Recovery Period (in years) 2016 2015 Regulatory assets: Unamortized loss on reacquired debt (a) 8 $ 1,815 $ 2,096 Deferred taxes on AFUDC (b) 45 9,367 8,571 Employee benefit plans (c) 12 20,100 20,866 Deferred energy costs (a) 1 23,016 19,875 Deferred taxes on flow through accounting (a) 35 12,545 12,104 Decommissioning costs (b) 8 12,456 13,686 Other regulatory assets (a) (d) 2 12,835 8,615 Total regulatory assets $ 92,134 $ 85,813 Regulatory liabilities: Cost of removal for utility plant (a) 61 $ 41,541 $ 38,131 Employee benefit plans (c) 12 12,304 12,616 Other regulatory liabilities (c) 13 105 836 Total regulatory liabilities $ 53,950 $ 51,583 ____________________ (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, respectively. (d) Includes vegetation management expense of approximately $12.0 million and $5.0 million in 2016 and 2015, respectively. Regulatory assets represent items we expect to recover from customers through rates. Unamortized Loss on Reacquired Debt - The early redemption premium on reacquired debt is being amortized over the remaining term of the original bonds. Deferred Taxes on AFUDC - The equity component of AFUDC is considered a permanent difference for tax purposes with the tax benefit being flowed through to customers as prescribed or allowed by regulators. If, based on a regulator’s action, it is probable the utility will recover the future increase in taxes payable represented by this flow-through treatment through a rate revenue increase, a regulatory asset is recognized. This regulatory asset itself is a temporary difference for which a deferred tax liability must be recognized. Accounting standards for income taxes specifically address AFUDC-equity, and require a gross-up of such amounts to reflect the revenue requirement associated with a rate-regulated environment. Employee Benefit Plans - Employee benefit plans include the unrecognized prior service costs and net actuarial loss associated with our defined benefit pension plans and post-retirement benefit plans in regulatory assets rather than in accumulated other comprehensive income. In addition, this regulatory asset includes the income tax effect of the adjustment required under accounting for compensation-defined benefit plans to record the full pension and post-retirement benefit obligations. Such amounts have been grossed-up to reflect the revenue requirement associated with a rate regulated environment. Deferred Energy Costs - Deferred energy and fuel cost adjustments represent the cost of electricity delivered to our utility customers that are either higher or lower than the current rates and will be recovered or refunded in future rates. Deferred energy and fuel cost adjustments are recorded and recovered or amortized as approved by the appropriate state commission. Deferred Taxes on Flow-Through Accounting - Under flow-through accounting, the income tax effects of certain tax items are reflected in our cost of service for the customer in the year in which the tax benefits are realized and result in lower utility rates. This regulatory treatment was applied to the tax benefit generated by repair costs that were previously capitalized for tax purposes in a rate case settlement that was reached in 2010. In this instance, the agreed upon rate increase was less than it would have been absent the flow-through treatment. A regulatory asset established to reflect the future increases in income taxes payable will be recovered from customers as the temporary differences reverse. As a result of this regulatory treatment, we continue to record a tax benefit consistent with the flow-through method with respect to costs considered repairs for tax purposes and are capitalized for book purposes. Decommissioning Costs - We received approval in 2014 for regulatory treatment on the remaining net book values and decommissioning costs of our decommissioned coal plants. Regulatory liabilities represent items we expect to refund to customers through probable future decreases in rates. Cost of Removal for Utility Plant - Cost of removal for utility plant represents the estimated cumulative net provisions for future removal costs included in depreciation expense for which there is no legal obligation for removal. Employee Benefit Plans - Employee benefit plans represent the cumulative excess of pension and retiree healthcare costs recovered in rates over pension expense recorded in accordance with accounting standards for compensation - retirement benefits. In addition, this regulatory liability includes the income tax effect of the adjustment required under accounting for compensation - defined benefit plans, to record the full pension and post-retirement benefit obligations. Such income tax effect has been grossed-up to account for the revenue requirement aspect of a rate regulated environment. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable consists of sales to residential, commercial, industrial, municipal and other customers all of which do not bear interest. These accounts receivable are stated at billed and unbilled amounts net of write-offs or payment received. We maintain an allowance for doubtful accounts which reflects our best estimate of uncollectible trade receivables. We regularly review our trade receivable allowances by considering such factors as historical experience, credit worthiness, the age of the receivable balances and current economic conditions that may affect collectibility. The allowance is calculated by applying estimated write-off factors to various classes of outstanding receivables, including unbilled revenue. The write-off factors used to estimate uncollectible accounts are based upon consideration of both historical collections experience and management’s best estimate of future collection success given the existing collections environment. Following is a summary of accounts receivable at December 31 (in thousands): 2016 2015 Accounts receivable trade $ 16,972 $ 15,268 Unbilled revenues 13,799 12,795 Allowance for doubtful accounts (157 ) (207 ) Net accounts receivable trade $ 30,614 $ 27,856 Revenue Recognition Revenue is recognized when there is persuasive evidence of an arrangement with a fixed or determinable price, delivery has occurred or services have been rendered, and collectibility is reasonably assured. Sales and franchise taxes collected from our customers is recorded on a net basis (excluded from Revenue). Utility revenues are based on authorized rates approved by the state regulatory agencies and the FERC. Revenues related to the sale, transmission and distribution of energy, and delivery of service are generally recorded when service is rendered or energy is delivered to customers. To the extent that deliveries have occurred but a bill has not been issued, we accrue an estimate of the revenue since the latest billing. This estimate is calculated based upon several factors including billings through the last billing cycle in a month, and prices in effect in our jurisdictions. Each month a true-up of the estimated unbilled revenue amounts are recorded in Receivables- customers, net on the accompanying Balance Sheets. Materials, Supplies and Fuel Materials, supplies and fuel used for construction, operation and maintenance purposes are generally stated on a weighted-average cost basis. Other Current Assets The following amounts by major classification are included in Other current assets on the accompanying Balance Sheets as of (in thousands): December 31, 2016 December 31, 2015 Accrued receivables related to litigation expenses and settlements $ — $ 39,050 Other (none of which is individually significant) 3,876 4,068 Total other current assets $ 3,876 $ 43,118 Deferred Financing Costs Deferred financing costs are amortized using the effective interest method over the term of the related debt. Property, Plant and Equipment Additions to property, plant and equipment are recorded at cost when placed in service. Included in the cost of regulated construction projects is AFUDC, which represents the approximate composite cost of borrowed funds and a return on equity used to finance a regulated utility project. The cost of regulated electric property, plant and equipment retired, or otherwise disposed of in the ordinary course of business, less salvage, is charged to accumulated depreciation. Removal costs associated with non-legal obligations are reclassified from accumulated depreciation and reflected as regulatory liabilities. Ordinary repairs and maintenance of property, except as allowed under rate regulations, are charged to operations as incurred. Depreciation provisions for regulated electric property, plant and equipment are computed on a straight-line basis using an annual composite rate of 2.2% in 2016 , 2.3% in 2015 and 2.3% in 2014 . Accrued Liabilities The following amounts by major classification are included in Accrued liabilities on the accompanying Balance Sheets as of (in thousands): December 31, 2016 December 31, 2015 Accrued employee compensation, benefits and withholdings $ 4,783 $ 5,054 Accrued property taxes 5,522 4,962 Accrued payments related to litigation expenses and settlements — 38,750 Accrued income taxes 17,069 13,031 Customer deposits and prepayments 2,825 2,216 Accrued interest and contract adjustment payments 4,614 4,600 Other (none of which is individually significant) 2,623 841 Total accrued liabilities $ 37,436 $ 69,454 Derivatives and Hedging Activities From time to time we utilize risk management contracts including forward purchases and sales to hedge the price of fuel for our combustion turbines and fixed-for-float swaps to fix the interest on any variable rate debt. Contracts that qualify as derivatives under accounting standards for derivatives, and that are not exempted such as normal purchase/normal sale, are required to be recorded in the balance sheet as either an asset or liability, measured at its fair value. Accounting standards for derivatives require that changes in the derivative instrument’s fair value be recognized currently in earnings unless specific hedge accounting criteria are met. Accounting standards for derivatives allow hedge accounting for qualifying fair value and cash flow hedges. Gain or loss on a derivative instrument designated and qualifying as a fair value hedging instrument as well as the offsetting loss or gain on the hedged item attributable to the hedged risk should be recognized currently in earnings in the same accounting period. Conversely, the effective portion of the gain or loss on a derivative instrument designated and qualifying as a cash flow hedging instrument should be reported as a component of other comprehensive income and be reclassified into earnings or as a regulatory asset or regulatory liability, net of tax, in the same period or periods during which the hedged forecasted transaction affects earnings. The remaining gain or loss on the derivative instrument, if any, is recognized currently in earnings. Revenues and expenses on contracts that qualify are designated as normal purchases and normal sales and are recognized when the underlying physical transaction is completed under the accrual basis of accounting. Normal purchases and normal sales are contracts where physical delivery is probable, quantities are expected to be used or sold in the normal course of business over a reasonable amount of time, and price is not tied to an unrelated underlying derivative. As part of our regulated electric operations, we enter into contracts to buy and sell energy to meet the requirements of our customers. These contracts include short-term and long-term commitments to purchase and sell energy in the retail and wholesale markets with the intent and ability to deliver or take delivery. If it was determined that a transaction designated as a normal purchase or normal sale no longer met the exceptions, the fair value of the related contract would be reflected as either an asset or liability, under the accounting standards for derivatives and hedging. Fair Value Measurements Accounting standards for fair value measurements provide a single definition of fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date and also requires disclosures and establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The fair value hierarchy ranks the quality and reliability of the information used to determine fair values giving the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Financial assets and liabilities carried at fair value are classified and disclosed in one of the following three categories: Level 1 - Unadjusted quoted prices available in active markets that are accessible at the measurement date for identical unrestricted assets or liabilities. Level 2 - Pricing inputs include quoted prices for identical or similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 - Pricing inputs include significant inputs that are generally less observable from objective sources. Impairment of Long-Lived Assets We periodically evaluate whether events and circumstances have occurred which may affect the estimated useful life or the recoverability of the remaining balance of our long-lived assets. If such events or circumstances were to indicate that the carrying amount of these assets was not recoverable, we would estimate the future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected future cash flows (undiscounted and without interest charges) was less than the carrying amount of the long-lived assets, we would recognize an impairment loss. Income Taxes We file a federal income tax return with other members of the Parent’s consolidated group. For financial statement purposes, federal income taxes are allocated to the individual companies based on amounts calculated on a separate return basis. We use the liability method in accounting for income taxes. Under the liability method, deferred income taxes are recognized at currently enacted income tax rates, to reflect the tax effect of temporary differences between the financial and tax basis of assets and liabilities, as well as operating loss and tax credit carryforwards. Such temporary differences are the result of provisions in the income tax law that either require or permit certain items to be reported on the income tax return in a different period than they are reported in the financial statements. We recognize interest income or interest expense and penalties related to income tax matters in Income tax (expense) benefit on the Statements of Income. We account for uncertainty in income taxes recognized in the financial statements in accordance with accounting standards for income taxes. The unrecognized tax benefit is classified in Other, non-current liabilities on the accompanying Balance Sheets. See Note 6 for additional information. Recently Issued and Adopted Accounting Standards Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments, ASU 2016-15 In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force). This ASU requires changes in the presentation of certain items including but not limited to debt prepayment or debt extinguishment costs; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies and distributions received from equity method investees. The ASU will be effective for fiscal years beginning after December 15 , 2017. We will use the retrospective transition method to adopt this standard with fiscal years beginning after December 15, 2017. The adoption of this standard will not have a material impact on our financial position, results of operations and cash flows. Leases, ASU 2016-02 In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which supersedes ASC 840, Leases . This ASU requires lessees to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. Lessees are permitted to make an accounting policy election to not recognize the asset and liability for leases with a term of 12 months or less. The ASU does not significantly change the lessees’ recognition, measurement and presentation of expenses and cash flows from the previous accounting standard. Lessors’ accounting under the ASC is largely unchanged from the previous accounting standard. In addition, the ASU expands the disclosure requirements of lease arrangements. Lessees and lessors will use a modified retrospective transition approach, which includes a number of practical expedients. The guidance is effective for us beginning after December 15, 2018. Early adoption is permitted. We are currently assessing the impact that adoption of ASU 2016-02 will have on our financial position, results of operations or cash flows. Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or its Equivalent), ASU 2015-07 On May 1, 2015, the FASB issued ASU 2015-07, Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or its Equivalent) . This ASU removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient and also removes certain disclosure requirements. The new requirements were effective for us beginning January 1, 2016 and were applied retrospectively to all periods presented, in our 2016 Form 10-K. This ASU did not materially affect our financial statements and disclosures, but did change certain presentation and disclosure of the fair value of certain plan assets in our pension and other postretirement benefit plan disclosures in our 2016 Form 10-K, for all periods presented. Simplifying the Presentation of Debt Issuance Costs, ASU 2015-03 In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs . Debt issuance costs related to a recognized debt liability will be presented on the balance sheet as a direct deduction from the debt liability, similar to the presentation of debt discounts, rather than as an asset. Amortization of these costs will continue to be reported as interest expense. ASU 2015-03 is effective for annual and interim reporting periods beginning after December 15, 2015. We adopted ASU 2015-03 in the first quarter of 2016 on a retrospective basis. As of December 31, 2016, we presented the debt issuance costs, previously reported in other assets, as direct deductions from the carrying amount of long-term debt. The implementation of this standard resulted in reductions of other assets, non-current and long-term debt of approximately $3.1 million in the Balance Sheets as of December 31, 2015. Revenue from Contracts with Customers, ASU 2014-09 In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers . The standard provides companies with a single model for use in accounting for revenue arising from contracts with customers and supersedes current revenue recognition guidance, including industry-specific revenue guidance. The core principle of the model is to recognize revenue when control of the goods or services transfers to the customer. The new disclosure requirements will provide information about the nature, amount, timing and uncertainty of revenue and cash flows from revenue contracts with customers. The guidance is effective for annual and interim reporting periods beginning after December 15, 2017 with early adoption on January 1, 2017 permitted. Entities will have the option of using either a full retrospective or modified retrospective approach to adopting this guidance. Under the modified approach, an entity would recognize the cumulative effect of initially applying the guidance with an adjustment to the opening balance of retained earnings in the period of adoption. We will adopt this standard for annual and interim reporting periods beginning after December 15, 2017 and are actively assessing all of our sources of revenue to determine the impact that adoption of the new standard will have on our financial position, results of operations and cash flows. Our evaluation includes identifying revenue streams by like contracts to allow for ease of implementation. A majority of our revenues are from regulated tariff offerings that provide electricity with a defined contractual term. For such arrangements, we expect that the revenue from contracts with the customer will be equivalent to the electricity delivered in that period. Therefore, we do not expect that there will be a significant shift in the timing or pattern of revenue recognition for regulated tariff-based sales. The evaluation of other revenue streams is ongoing, including those tied to longer term contractual commitments. However, a number of industry-specific implementation issues are still unresolved and the final resolution of these issues could impact our current accounting policies and/or patterns for revenue recognition, as well as the transition method selected. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment at December 31 consisted of the following (dollars in thousands): 2016 2015 Weighted Weighted Average Average Lives (in years) 2016 Useful Life (in years) 2015 Useful Life (in years) Minimum Maximum Electric plant: Production $ 576,833 46 $ 569,182 46 30 63 Transmission 147,398 48 117,708 48 40 70 Distribution 364,304 46 353,241 46 15 75 Plant acquisition adjustment (a) 4,870 32 4,870 32 32 32 General 88,114 23 88,939 22 3 65 Total plant-in-service 1,181,519 1,133,940 Construction work in progress 54,868 32,186 Total electric plant 1,236,387 1,166,126 Less accumulated depreciation and amortization (338,828 ) (326,074 ) Electric plant net of accumulated depreciation and amortization $ 897,559 $ 840,052 __________________ (a) The plant acquisition adjustment is included in rate base and is being recovered with 14 years remaining. |
Jointly Owned Facilities
Jointly Owned Facilities | 12 Months Ended |
Dec. 31, 2016 | |
Jointly Owned Utility Plant, Net Ownership Amount [Abstract] | |
Jointly Owned Facilities | JOINTLY OWNED FACILITIES We use the proportionate consolidation method to account for our percentage interest in the assets, liabilities and expenses of the following facilities: • We own a 20% interest in the Wyodak Plant (the “Plant”), a coal-fired electric generating station located in Campbell County, Wyoming. PacifiCorp owns the remaining ownership percentage and is the operator of the Plant. We receive our proportionate share of the Plant’s capacity and are committed to pay our share of its additions, replacements and operating and maintenance expenses. • We own a 35% interest in, and are the operator of, the Converter Station Site and South Rapid City Interconnection (the transmission tie), an AC-DC-AC transmission tie. Basin Electric owns the remaining ownership percentage. The transmission tie provides an interconnection between the Western and Eastern transmission grids, which provides us with access to both the WECC region and the MAPP region. The total transfer capacity of the transmission tie is 400 MW, including 200 MW West to East and 200 MW from East to West. We are committed to pay our proportionate share of the additions, replacements and operating and maintenance expenses. • We own a 52% interest in the Wygen III power plant. MDU and the City of Gillette each owns an undivided ownership interest in Wygen III and are obligated to make payments for costs associated with administrative services and a proportionate share of the costs of operating the plant for the life of the facility. We retain responsibility for plant operations. • We own 55 MW of Cheyenne Prairie, a 95 MW gas-fired power generation facility located in Cheyenne, Wyoming. Wyoming Electric owns the remaining 40 MW. This facility was placed into commercial operations on October 1, 2014. We are committed to pay our proportionate share of the additions, replacements and operating and maintenance expenses. The investments in our jointly owned plants and accumulated depreciation are included in the corresponding captions in the accompanying Balance Sheets. Our share of direct expenses of the Plants is included in the corresponding categories of operating expenses in the accompanying Statements of Income. Each of the respective owners is responsible for providing its own financing. As of December 31, 2016 , our interests in jointly-owned generating facilities and transmission systems included on our Balance Sheets were as follows (in thousands): Interest in jointly-owned facilities Plant in Service Construction Work in Progress Accumulated Depreciation Wyodak Plant $ 113,611 $ 256 $ 55,878 Transmission Tie $ 19,978 $ 13 $ 5,793 Wygen III $ 138,261 $ 1,806 $ 17,635 Cheyenne Prairie $ 91,365 $ 155 $ 6,015 |
Long term Debt
Long term Debt | 12 Months Ended |
Dec. 31, 2016 | |
Long-term Debt, Unclassified [Abstract] | |
Long term Debt | LONG-TERM DEBT Long-term debt outstanding at December 31 was as follows (in thousands): Maturity Date Interest Rate 2016 2015 First Mortgage Bonds due 2032 August 15, 2032 7.23 % $ 75,000 $ 75,000 First Mortgage Bonds due 2039 November 1, 2039 6.125 % 180,000 180,000 First Mortgage Bonds due 2044 October 20, 2044 4.43 % 85,000 85,000 Unamortized Discount, First Mortgage Bonds due 2039 (94 ) (99 ) Series 94A Debt (a) June 1, 2024 0.88 % 2,855 2,855 Unamortized Debt Expense (3,005 ) (3,140 ) Long-term Debt $ 339,756 $ 339,616 ___________________ (a) Variable interest rate at December 31, 2016. Net deferred financing costs of approximately $3.0 million and $3.1 million were recorded on the accompanying Balance Sheets in long-term debt at December 31, 2016 and 2015 , respectively, and are being amortized over the term of the debt. Amortization of deferred financing costs of approximately $0.1 million , $0.1 million and $0.1 million for the years ended December 31, 2016 , 2015 and 2014 , respectively, are included in Interest expense on the accompanying Statements of Income. Substantially all of our property is subject to the lien of the indenture securing our first mortgage bonds. First mortgage bonds may be issued in amounts limited by property, earnings and other provisions of the mortgage indentures. We were in compliance with our debt covenants at December 31, 2016 . Long-term Debt Maturities Scheduled maturities of our outstanding long-term debt (excluding unamortized discounts) are as follows (in thousands): 2017 $ — 2018 $ — 2019 $ — 2020 $ — 2021 $ — Thereafter $ 342,855 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | FAIR VALUE OF FINANCIAL INSTRUMENTS The estimated fair values of our financial instruments at December 31 were as follows (in thousands): 2016 2015 Carrying Value Fair Value Carrying Value Fair Value Cash and cash equivalents (a) $ 234 $ 234 $ 297 $ 297 Long-term debt (b) $ 339,756 $ 410,466 $ 339,616 $ 404,864 _______________ (a) Fair value approximates carrying value due to either short-term length of maturity or variable interest rates that approximate prevailing market rates and therefore is classified in Level 1 in the fair value hierarchy. (b) Long-term debt is valued using the market approach based on observable inputs of quoted market prices and yields available for debt instruments either directly or indirectly for similar maturities and debt ratings in active markets and therefore is classified in Level 2 in the fair value hierarchy. The carrying amount of our variable rate debt approximates fair value due to the variable interest rates with short reset periods. For additional information on our long-term debt see Note 4 . The following methods and assumptions were used to estimate the fair value of each class of our financial instruments. Cash and Cash Equivalents Included in cash and cash equivalents is cash and overnight repurchase agreement accounts. As part of our cash management process, excess operating cash is invested in overnight repurchase agreements with our bank. Repurchase agreements are not deposits and are not insured by the U.S. Government, the FDIC or any other government agency and involve investment risk including possible loss of principal. We believe however, that the market risk arising from holding these financial instruments is minimal. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Income tax expense (benefit) from continuing operations for the years ended December 31 was as follows (in thousands): 2016 2015 2014 Current $ 1,838 $ 14,910 $ (6 ) Deferred 20,690 7,690 16,518 Total income tax expense $ 22,528 $ 22,600 $ 16,512 The temporary differences, which gave rise to the net deferred tax liability, for the years ended December 31 were as follows (in thousands): 2016 2015 Deferred tax assets: Employee benefits $ 5,163 $ 4,683 Regulatory liabilities 9,099 9,908 Other 1,815 16,186 Total deferred tax assets 16,077 30,777 Deferred tax liabilities: Accelerated depreciation and other plant related differences (a) (202,047 ) (196,237 ) Regulatory assets (4,391 ) (4,236 ) Employee benefits (3,075 ) (3,003 ) Deferred costs (16,920 ) (14,765 ) Other (1,087 ) (1,497 ) Total deferred tax liabilities (227,520 ) (219,738 ) Net deferred tax assets (liabilities) $ (211,443 ) $ (188,961 ) _________________________ (a) To conform to the 2016 presentation of accelerated depreciation and other plant-related differences, 2015 is net of deferred tax liabilities of $8.6 million, previously presented as AFUDC Equity. The effective tax rate differs from the federal statutory rate for the years ended December 31, as follows: 2016 2015 2014 Federal statutory rate 35.0 % 35.0 % 35.0 % Amortization of excess deferred and investment tax credits (0.4 ) (0.1 ) (0.3 ) AFUDC Equity (0.9 ) (0.6 ) (0.1 ) Flow through adjustments (a) (0.9 ) (0.9 ) (1.9 ) Tax credits (0.1 ) — (0.2 ) Other 0.6 — 0.5 33.3 % 33.4 % 33.0 % _________________________ (a) The flow-through adjustments related primarily to an accounting method change for tax purposes that allows us to take a current tax deduction for repair costs that continue to be capitalized for book purposes. We recorded a deferred income tax liability in recognition of the temporary difference created between book and tax treatment and we flowed the tax benefit through to tax expense. The following table reconciles the total amounts of unrecognized tax benefits, without interest, included in Other deferred credits and other liabilities on the accompanying Balance Sheet (in thousands): 2016 2015 Unrecognized tax benefits at January 1 $ 2,264 $ 1,623 Additions for prior year tax positions 1,194 888 Reductions for prior year tax positions (682 ) (247 ) Settlements for prior year tax positions (2,283 ) — Unrecognized tax benefits at December 31 $ 493 $ 2,264 The total amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate is approximately $0.2 million . The reductions for prior year tax positions relate primarily to the IRS settlement as discussed below. We file income tax returns in the United States federal jurisdictions as a member of the BHC consolidated group. It is our continuing practice to recognize interest and/or penalties related to income tax matters in income tax expense. During the years ended December 31, 2016 and 2015 , the interest expense recognized was not material to our financial results. In January 2016, we reached a settlement in principle with IRS Appeals with respect to research and development tax credits and deductions for tax years 2007 through 2009. The settlement resulted in a reduction of approximately $2.9 million excluding interest. Accumulated deferred income taxes were restored by approximately $0.6 million and approximately $2.3 million was reclassified to current taxes payable. We do not anticipate total unrecognized tax benefits will significantly change due to the settlement of any audits or the expiration of statutes of limitations on or before December 31, 2017. At December 31, 2016, we are no longer in a federal NOL carry forward position. |
Comprehensive Income
Comprehensive Income | 12 Months Ended |
Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Comprehensive Income | COMPREHENSIVE INCOME The components of the reclassification adjustments for the period, net of tax, included in Other Comprehensive Income were as follows (in thousands): Location on the Statements of Income Amounts Reclassified from AOCI 2016 2015 Gains and Losses on cash flow hedges: Interest rate swaps gain (loss) Interest expense $ 64 $ 64 Income tax Income tax benefit (expense) (22 ) 319 Total reclassification adjustments related to cash flow hedges, net of tax $ 42 $ 383 Amortization of defined benefit plans: Actuarial gain (loss) Operations and maintenance $ 82 $ 94 Income tax Income tax benefit (expense) (29 ) (33 ) Total reclassification adjustments related to defined benefit plans, net of tax $ 53 $ 61 Derivatives designated as cash flow hedges relate to a treasury lock entered into in August 2002 to hedge $50 million of our First Mortgage Bonds due on August 15, 2032 . The treasury lock cash settled on August 8, 2002 , the bond pricing date, and resulted in a $1.8 million loss. The treasury lock is treated as a cash flow hedge and the resulting loss is carried in Accumulated other comprehensive loss and is being amortized over the life of the related bonds. Balances by classification included within Accumulated other comprehensive loss on the accompanying Balance Sheets were as follows (in thousands): Interest Rate Swaps Employee Benefit Plans Total As of December 31, 2015 $ (635 ) $ (672 ) $ (1,307 ) Other comprehensive income (loss) 42 3 45 As of December 31, 2016 $ (593 ) $ (669 ) $ (1,262 ) Interest Rate Swaps Employee Benefit Plans Total As of December 31, 2014 $ (1,018 ) $ (801 ) $ (1,819 ) Other comprehensive income (loss) 383 129 512 As of December 31, 2015 $ (635 ) $ (672 ) $ (1,307 ) |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS Funded Status of Benefit Plans We apply accounting standards for regulated operations, and accordingly, the unrecognized net periodic benefit cost that would have been reclassified to Accumulated other comprehensive income (loss) was alternatively recorded as a regulatory asset or regulatory liability, net of tax. Defined Benefit Pension Plan We have a defined benefit pension plan (“Pension Plan”) covering certain eligible employees. The benefits for the Pension Plan are based on years of service and calculations of average earnings during a specific time period prior to retirement. The Pension Plan has been closed to new employees and certain employees who did not meet age and service based criteria. Black Hills Retirement Plan assets are held in a Master Trust. Due to the plan merger on December 31, 2016, reporting beginning in 2017 will no longer represent an undivided interest in the Master Trust. Our Board of Directors has approved the Plans’ investment policy. The objective of the investment policy is to manage assets in such a way that will allow the eventual settlement of our obligations to the Pension Plans’ beneficiaries. To meet this objective, our pension assets are managed by an outside adviser using a portfolio strategy that will provide liquidity to meet the Plans’ benefit payment obligations. The Pension Plans’ assets consist primarily of equity, fixed income and hedged investments. The expected rate of return on pension plan assets is based on a targeted asset allocation range determined by the funded ratio of the plan. As of December 31, 2016, the expected rate of return on pension plan assets is based on the targeted asset allocation range of 44% to 52% equity and other return-seeking assets, and 48% to 56% fixed-income liability-hedging assets, and the expected rate of return from the associated asset categories. The expected long-term rate of return for investments was 6.75% for the 2016 and 2015 plan years. Our Pension Plan funding policy is in accordance with the federal government’s funding requirements. Pension Plan Assets The percentages of total plan asset fair value by investment category of our Pension Plan assets at December 31 were as follows: 2016 2015 Equity securities 28 % 26 % Real estate 5 5 Fixed income funds 57 59 Cash and cash equivalents 2 1 Hedge funds 8 9 Total 100 % 100 % Supplemental Non-qualified Defined Benefit Retirement Plans We have various supplemental retirement plans (“Supplemental Plans”) for key executives. The Supplemental Plans are non-qualified defined benefit plans. The Supplemental Plans are subject to various vesting schedules. Supplemental Plan Assets We fund our Supplemental Plans on a cash basis as benefits are paid. Defined Benefit Postretirement Healthcare Plan Employees who are participants in our Postretirement Healthcare Plan (“Healthcare Plan”) and who retire on or after attaining minimum age and years of service requirements are entitled to postretirement healthcare benefits. These benefits are subject to premiums, deductibles, co-payment provisions and other limitations. We may amend or change the Healthcare Plan periodically. We are not pre-funding our retiree medical plan. We have determined that the Healthcare Plan’s post-65 retiree prescription drug plans are actuarially equivalent and qualify for the Medicare Part D subsidy. Plan Assets We fund our Healthcare Plans on a cash basis as benefits are paid. Plan Contributions and Estimated Cash Flows Cash contributions for pension plans are made directly to the Master Trust accounts. Healthcare and Supplemental Plan contributions are made in the form of benefit payments. Contributions for the years ended December 31 were as follows (in thousands): 2016 2015 Defined Benefit Plans Defined Benefit Pension Plan $ 820 $ — Defined Benefit Postretirement Healthcare Plan $ 279 $ 267 Supplemental Non-qualified Defined Benefit Plan $ 221 $ 211 Defined Contribution Plans Company Retirement Contribution $ 851 $ 811 Matching Contributions $ 1,400 $ 1,423 While we do not have required contributions, we expect to make approximately $1.3 million in contributions to our Defined Benefit Pension Plan in 2017. Fair Value Measurements 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 their placement within the fair value hierarchy levels. The following tables set forth, by level within the fair value hierarchy, the assets that were accounted for at fair value on a recurring basis as of December 31 (in thousands): Defined Benefit Pension Plan 2016 Level 1 Level 2 Level 3 NAV (a) Total Fair Value Common Collective Trust - Cash and Cash Equivalents $ — $ 980 $ — — $ 980 Common Collective Trust - Equity — 14,927 — — 14,927 Common Collective Trust - Fixed Income — 31,003 — — 31,003 Common Collective Trust - Real Estate — 347 — 2,300 2,647 Hedge Funds — — — 4,331 4,331 Total investments measured at fair value $ — $ 47,257 $ — 6,631 $ 53,888 Defined Benefit Pension Plan 2015 Level 1 Level 2 Level 3 NAV (a) Total Fair Value Common Collective Trust - Cash and Cash Equivalents $ — $ 498 $ — — $ 498 Common Collective Trust - Equity — 14,198 — — $ 14,198 Common Collective Trust - Fixed Income — 32,615 — — $ 32,615 Common Collective Trust - Real Estate — 418 — 2,113 $ 2,531 Hedge Funds — — — 4,881 4,881 Total investments measured at fair value $ — $ 47,729 $ — 6,994 $ 54,723 ________________________ (a) Certain investments that are measured at fair value using Net Asset Value “NAV” per share (or its equivalent) for practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in these tables for these investments are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the reconciliation of changes in the plans’ benefit obligations and fair value of plan assets below. Common Collective Trust - Cash and Cash Equivalents: This category is comprised of the AXA Equitable General Fixed Income Fund and Common Collective Trusts - cash and cash equivalents. The AXA Equitable General Fixed Income Fund is a fund of diversified portfolios, primarily composed of fixed income instruments. Assets are invested in long-term holdings, such as commercial, agricultural and residential mortgages, publicly traded and privately placed bonds and real estate as well as short-term bonds. Fair values of mortgage loans are measured by discounting future contractual cash flows to be received on the mortgage loans using interest rates which loans with similar characteristics have. The discount rate is derived from taking the appropriate U.S. Treasury rate with a like term. The fair values of public fixed maturity securities are generally based on prices obtained from independent valuation service providers with reasonableness prices compared with directly observable market trades. The fair values of privately placed securities are determined using a discounted cash flow model. These models use observable inputs with a discount rate based upon the average of spread surveys collected from private market intermediaries and industry sector of the issuer. Common Collective Trust - Trust Funds: The Plan holds units of various Common Collective Trust Funds offered through a private placement. The units are valued daily using the NAV. The NAVs are based on the fair value of each fund’s underlying investments. Level 1 assets are priced using quotes for trades occurring in active markets for the identical asset. Level 2 assets are priced using observable inputs for the asset (for example, interest rates and yield curves observable at commonly quoted intervals, volatilities, prepayment speeds, loss severities, credit risks, and default rates) or inputs that are derived principally from or corroborated by observable market data by correlation or other means (market-corroborated inputs). The Plan’s investments in common collective trust funds, with the exception of shares of the common collective trust real estate are categorized as Level 2. Common Collective Trust - Real Estate Fund : This fund is valued based on various factors of the underlying real estate properties, including market rent, market rent growth, occupancy levels, etc. As part of the trustee’s valuation process, properties are externally appraised generally on an annual basis. The appraisals are conducted by reputable independent appraisal firms and signed by appraisers that are members of the Appraisal Institute, with professional designation of Member, Appraisal Institute. All external appraisals are performed in accordance with the Uniform Standards of Professional Appraisal Practices. We receive monthly statements from the trustee, along with the annual schedule of investments, and rely on these reports for pricing the units of the fund. Hedge Funds: Hedge funds represent investments in other investment funds that seek a return utilizing a number of diverse investment strategies. The strategies, when combined aim to reduce volatility and risk while attempting to deliver positive returns under all market conditions. Amounts are reported on a one-month lag. The fair value of hedge funds is determined using net asset value per share based on the fair value of the hedge fund’s underlying investments. Generally, shares may be redeemed at the end of each quarter, with a 65 day notice and are limited to a percentage of total net asset value of the fund. The net asset values are based on the fair value of each fund’s underlying investments. There are no unfunded commitments related to these hedge funds. Plan Reconciliations The following tables provide a reconciliation of the Employee Benefit Plan’s obligations and fair value of assets, components of the net periodic expense and elements of regulatory assets and liabilities and AOCI (in thousands): Benefit Obligations Defined Benefit Pension Plan Supplemental Non-qualified Defined Benefit Retirement Plans Defined Benefit Postretirement Healthcare Plan 2016 2015 2016 2015 2016 2015 Change in benefit obligation: Projected benefit obligation at beginning of year $ 65,959 $ 71,178 $ 3,426 $ 3,599 $ 6,208 $ 6,038 Service cost 606 797 — — 204 233 Interest cost 2,499 2,956 122 142 187 214 Actuarial loss (gain) 455 (5,650 ) 78 (104 ) (446 ) 27 Benefits paid (3,215 ) (3,284 ) (222 ) (211 ) (420 ) (387 ) Plan participants transfer to affiliate (a) (1,331 ) (38 ) — — (31 ) (7 ) Medicare Part D adjustment — — — — — (30 ) Plan participants’ contributions — — — — 141 120 Projected benefit obligation at end of year $ 64,973 $ 65,959 $ 3,404 $ 3,426 $ 5,843 $ 6,208 A reconciliation of the fair value of Plan assets (as of the December 31 measurement date) is as follows (in thousands): Defined Benefit Pension Plan Supplemental Non-qualified Defined Benefit Retirement Plans Defined Benefit Postretirement Healthcare Plan 2016 2015 2016 2015 2016 2015 Beginning fair value of plan assets $ 54,723 $ 59,098 $ — $ — $ — $ — Investment income (loss) 2,485 (1,057 ) — — — — Benefits paid (3,215 ) (3,284 ) (221 ) (211 ) (420 ) (387 ) Participant contributions — — — — 279 120 Employer contributions 820 — 221 211 141 267 Plan participants transfer to affiliate (a) (925 ) (34 ) — — — — Ending fair value of plan assets $ 53,888 $ 54,723 $ — $ — $ — $ — __________________ (a) Change is related to the merger of the three defined benefit pension plans maintained by Black Hills Corporation into one plan as of December 31, 2016. The funded status of the plans and amounts recognized in the Balance Sheets at December 31 consist of (in thousands): Defined Benefit Pension Plan Supplemental Non-qualified Defined Benefit Retirement Plans Non-pension Defined Benefit Postretirement Plan 2016 2015 2016 2015 2016 2015 Regulatory asset (liability) $ 18,974 $ 19,816 $ — $ — $ (2,087 ) $ (1,946 ) Current liability $ — $ — $ (247 ) $ (216 ) $ (541 ) $ (619 ) Non-current liability $ (11,085 ) $ (11,236 ) $ (3,157 ) $ (3,210 ) $ (5,302 ) $ (5,587 ) Accumulated Benefit Obligation (in thousands) Defined Benefit Pension Plan Supplemental Non-qualified Defined Benefit Retirement Plans Non-pension Defined Benefit Postretirement Healthcare Plan 2016 2015 2016 2015 2016 2015 Accumulated benefit obligation $ 61,585 $ 62,240 $ 3,404 $ 3,426 $ 5,843 $ 6,208 Components of Net Periodic Expense (in thousands) Defined Benefit Pension Plan Supplemental Non-qualified Defined Benefit Retirement Plans Non-pension Defined Benefit Postretirement Healthcare Plan 2016 2015 2014 2016 2015 2014 2016 2015 2014 Service cost $ 606 $ 797 $ 704 $ — $ — $ — $ 204 $ 233 $ 222 Interest cost 2,499 2,956 2,991 122 142 146 187 214 241 Expected return on assets (3,632 ) (3,935 ) (3,702 ) — — — — — — Amortization of prior service cost (credits) 43 43 43 — — — (337 ) (336 ) (335 ) Recognized net actuarial loss (gain) 1,995 2,196 940 82 93 45 — — — Net periodic expense $ 1,511 $ 2,057 $ 976 $ 204 $ 235 $ 191 $ 54 $ 111 $ 128 Accumulated Other Comprehensive Income (Loss) Amounts included in AOCI, after-tax, that have not yet been recognized as components of net periodic benefit cost at December 31 were as follows (in thousands): Defined Benefit Pension Plan Supplemental Non-qualified Defined Benefit Retirement Plans Non-pension Defined Benefit Postretirement Healthcare Plan 2016 2015 2016 2015 2016 2015 Net loss $ — $ — $ 669 $ 672 $ — $ — Prior service cost — — — — — — Total accumulated other comprehensive income (loss) $ — $ — $ 669 $ 672 $ — $ — The amounts in AOCI, regulatory assets or regulatory liabilities, after-tax, expected to be recognized as a component of net periodic benefit cost during calendar year 2017 are as follows (in thousands): Defined Benefits Pension Plan Supplemental Non-qualified Defined Benefit Retirement Plans Non-pension Defined Benefit Postretirement Healthcare Plan Net gain (loss) $ 799 $ 51 $ — Prior service cost 28 — (218 ) Total net periodic benefit cost expected to be recognized during calendar year 2017 $ 827 $ 51 $ (218 ) Assumptions Defined Benefit Pension Plan Supplemental Non-qualified Defined Benefit Retirement Plans Non-pension Defined Benefit Postretirement Healthcare Plan 2016 2015 2014 2016 2015 2014 2016 2015 2014 Weighted-average assumptions used to determine benefit obligations: Discount rate 4.27 % 4.63 % 4.25 % 4.12 % 4.29 % 3.98 % 3.84 % 4.03 % 3.70 % Rate of increase in compensation levels 3.47 % 3.57 % 3.86 % N/A N/A N/A N/A N/A N/A Weighted-average assumptions used to determine net periodic benefit cost for plan year: Discount rate (a) 4.63 % 4.25 % 5.10 % 4.29 % 3.98 % 4.68 % 4.03 % 3.70 % 4.45 % Expected long-term rate of return on assets (b) 6.75 % 6.75 % 6.75 % N/A N/A N/A N/A N/A N/A Rate of increase in compensation levels 3.57 % 3.86 % 3.86 % N/A N/A N/A N/A N/A N/A _____________________________ (a) The estimated discount rate for the merged Black Hills Corporation’s Retirement Plan is 4.27% for the calculation of the 2017 net periodic pension costs. (b) The expected rate of return on plan assets is 6.75% for the calculation of the 2017 net periodic pension cost. The healthcare benefit obligation was determined at December 31 as follows: 2016 2015 Healthcare trend rate pre-65 Trend for next year 6.10 % 6.35 % Ultimate trend rate 4.50 % 4.50 % Year Ultimate Trend Reached 2024 2024 Healthcare trend rate post-65 Trend for next year 5.10 % 5.20 % Ultimate trend rate 4.50 % 4.50 % Year Ultimate Trend Reached 2023 2023 We do not pre-fund our post-retirement benefit plan. The table below shows the estimated impacts of an increase or decrease to our healthcare trend rate for our Retiree Health Care Plan (in thousands): Change in Assumed Trend Rate Service and Interest Costs Accumulated Periodic Postretirement Benefit Obligation 1% increase $ 5 $ 125 1% decrease $ (5 ) $ (121 ) Beginning in 2016, the Company changed the method used to estimate the service and interest cost components of the net periodic pension, supplemental non-qualified defined benefit and other postretirement benefit costs. The new method uses the spot yield curve approach to estimate the service and interest costs by applying the specific spot rates along the yield curve used to determine the benefit obligations to relevant projected cash outflows. Previously, those costs were determined using a single weighted-average discount rate. The change does not affect the measurement of the total benefit obligations as the change in service and interest costs offset the actuarial gains and losses recorded in other comprehensive income. The new method provides a more precise measure of interest and service costs by improving the correlation between the projected benefit cash flows and the discrete spot yield curve rates. We accounted for this change as a change in estimate beginning in the first quarter of 2016. See “Pension and Postretirement Benefit Obligations” within our Critical Accounting Policies in Item 7 on this Form 10-K for additional details. The following benefit payments, which reflect future service, are expected to be paid (in thousands): Defined Benefit Pension Plan Supplemental Non-qualified Defined Benefit Retirement Plans Defined Benefit Postretirement Healthcare Plan 2017 $ 3,946 $ 247 $ 541 2018 $ 3,543 $ 243 $ 562 2019 $ 3,669 $ 241 $ 577 2020 $ 3,766 $ 237 $ 585 2021 $ 3,883 $ 330 $ 570 2022-2026 $ 20,663 $ 1,519 $ 2,456 Defined Contribution Plan The Parent sponsors a 401(k) retirement savings plan in which our employees may participate. Participants may elect to invest up to 50% of their eligible compensation on a pre-tax or after-tax basis, up to a maximum amount established by the Internal Revenue Service. The plan provides for company matching contributions and company retirement contributions. Employer contributions vest at 20% per year and are fully vested when the participant has 5 years of service. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED-PARTY TRANSACTIONS Non-Cash Dividend to Parent We recorded non-cash dividends to our Parent of approximately $53 million and $29 million in 2016 and 2015 respectively, and decreased the utility money pool note receivable, net for approximately $53 million and $29 million in 2016 and 2015, respectively. Receivables and Payables We have accounts receivable and accounts payable balances related to transactions with other BHC subsidiaries. These balances as of December 31 were as follows (in thousands): 2016 2015 Receivable - affiliates $ 9,526 $ 6,734 Accounts payable - affiliates $ 31,799 $ 30,582 Money Pool Notes Receivable and Notes Payable We have a Utility Money Pool Agreement (the Agreement) with BHC, Wyoming Electric and Black Hills Utility Holdings. Under the agreement, we may borrow from BHC however the Agreement restricts us from loaning funds to BHC or to any of BHCs’ non-utility subsidiaries. The Agreement does not restrict us from making dividends to BHC. Borrowings under the agreement bear interest at the weighted average daily cost of our parent company’s external borrowings as defined under the Agreement, or if there are no external funds outstanding on that date, then the rate will be the daily one month LIBOR rate plus 1.0% . The cost of borrowing under the Utility Money Pool was 2.21% at December 31, 2016 . We had the following balances with the Utility Money Pool as of December 31 (in thousands): 2016 2015 Notes receivable (payable), net $ 28,409 $ 76,813 Interest income relating to the Utility Money Pool for the years ended December 31, was as follows (in thousands): 2016 2015 2014 Interest income $ 1,047 $ 1,153 $ 304 Interest expense allocation from Parent BHC provides daily liquidity and cash management on behalf of all its subsidiaries. For the years ended December 31, 2016, 2015 and 2014, we were allocated $1.9 million , $2.1 million and $0.5 million , respectively, of interest expense allocations from BHC. Other Balances and Transactions We have the following Power Purchase and Transmission Services Agreements with affiliated entities: • An agreement, expiring September 3, 2028 , with Wyoming Electric to acquire 15 MW of the facility output from Happy Jack. Under a separate inter-company agreement expiring on September 3, 2028 , Wyoming Electric has agreed to sell up to 15 MW of the facility output from Happy Jack to us. • An agreement, expiring September 30, 2029 , with Wyoming Electric to acquire 20 MW of the facility output from Silver Sage. Under a separate inter-company agreement expiring on September 30, 2029 , Wyoming Electric has agreed to sell 20 MW of energy from Silver Sage to us. • A Generation Dispatch Agreement with Wyoming Electric that requires us to purchase all of Wyoming Electric’s excess energy. Related-party Gas Transportation Service Agreement On October 1, 2014, we entered into a gas transportation service agreement with Wyoming Electric in connection with gas supply for Cheyenne Prairie. The agreement is for a term of 40 years, in which we pay a monthly service and facility fee for firm and interruptible gas transportation. Related-party Revenue and Purchases We had the following related-party transactions for the years ended December 31 included in the corresponding captions in the accompanying Statements of Income: 2016 2015 2014 (in thousands) Revenues: Energy sold to Wyoming Electric $ 2,440 $ 1,857 $ 1,894 Rent from electric properties $ 5,046 $ 4,772 $ 4,102 Purchases: Purchase of coal from WRDC $ 16,227 $ 16,401 $ 16,861 Purchase of excess energy from Wyoming Electric $ 252 $ 898 $ 3,033 Purchase of renewable wind energy from Wyoming Electric - Happy Jack $ 1,918 $ 1,578 $ 1,959 Purchase of renewable wind energy from Wyoming Electric - Silver Sage $ 3,300 $ 2,739 $ 3,200 Corporate support services from Parent, Black Hills Service Company and Black Hills Utility Holdings $ 25,748 $ 26,655 $ 32,332 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | SUPPLEMENTAL CASH FLOW INFORMATION Years ended December 31, 2016 2015 2014 (in thousands) Non-cash investing and financing activities - Property, plant and equipment acquired with accrued liabilities $ 5,521 $ 3,870 $ 4,234 Non-cash decrease to money pool note receivable, net $ (52,500 ) $ (28,501 ) $ — Non-cash dividend to Parent company $ 52,500 $ 28,501 $ — Supplemental disclosure of cash flow information: Cash (paid) refunded during the period for - Interest (net of amounts capitalized) $ (21,320 ) $ (21,913 ) $ (19,573 ) Income taxes $ — $ — $ — |
Commitment and Contingencies
Commitment and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Power Purchase and Transmission Services Agreements We have the following power purchase and transmission services agreements, not including related party agreements, as of December 31, 2016 (see Note 9 for information on related party agreements): • A PPA with PacifiCorp expiring on December 31, 2023 , which provides for the purchase by us of 50 MW of electric capacity and energy from PacifiCorp’s system. The price paid for the capacity and energy is based on the operating costs of one of PacifiCorp’s coal-fired electric generating plants; • A firm point-to-point transmission access agreement to deliver up to 50 MW of power on PacifiCorp’s transmission system to wholesale customers in the western region through December 31, 2023 ; and • An agreement with Thunder Creek for gas transport capacity, expiring on October 31, 2019 . Costs incurred under these agreements were as follows for the years ended December 31 (in thousands): Contract Contract Type 2016 2015 2014 PacifiCorp Electric capacity and energy $ 12,221 $ 13,990 $ 13,943 PacifiCorp Transmission access $ 1,428 $ 1,213 $ 1,227 Thunder Creek Gas transport capacity $ 633 $ 633 $ 633 Future Contractual Obligations The following is a schedule of future minimum payments required under power purchase, transmission services, facility and vehicle leases, and gas supply agreements (in thousands): 2017 $ 13,091 2018 $ 6,388 2019 $ 6,388 2020 $ 6,388 2021 $ 5,755 Thereafter $ 11,510 Long-Term Power Sales Agreements We have the following power sales agreements as of December 31, 2016 : • An agreement with MDU to supply up to a maximum of 25 MW on a cost reimbursement basis during periods of reduced production at Wygen III; • A capacity and energy agreement with MDU through December 31, 2023 to supply up to a maximum of 50 MW; • An agreement with the City of Gillette to supply its first 23 MW on a cost reimbursement basis during periods of reduced production at Wygen III. Under this agreement, we will also provide the City of Gillette their operating component of spinning reserves; • A unit-contingent energy and capacity sales agreement with MEAN expiring on May 31, 2023 . This contract is based on up to 10 MW from Neil Simpson II and up to 10 MW from Wygen III based on the availability of these plants. The energy and capacity purchase requirements decrease over the term of the agreement; and • A PPA with MEAN, expiring May 31, 2023 . This contract is unit-contingent on up to 10 MW from Neil Simpson II and up to 10 MW from Wygen III based on the availability of these plants. The capacity purchase requirements decrease over the term of the agreement. Effective January 1, 2017, we have an energy sales agreement with Cargill through December 31, 2021 to supply 50 MW of energy during heavy and light load timing intervals. Legal Proceedings In the normal course of business, we are subject to various lawsuits, actions, proceedings, claims and other matters asserted under laws and regulations. We believe the amounts provided in the consolidated financial statements to satisfy alleged liabilities are adequate in light of the probable and estimable contingencies. However, there can be no assurance that the actual amounts required to satisfy alleged liabilities from various legal proceedings, claims and other matters discussed, and to comply with applicable laws and regulations will not exceed the amounts reflected in the consolidated financial statements. In the normal course of business, we enter into agreements that include indemnification in favor of third parties, such as information technology agreements, purchase and sale agreements and lease contracts. We have also agreed to indemnify our directors, officers and employees in accordance with our articles of incorporation, as amended. Certain agreements do not contain any limits on our liability and therefore, it is not possible to estimate our potential liability under these indemnifications. In certain cases, we have recourse against third parties with respect to these indemnities. Further, we maintain insurance policies that may provide coverage against certain claims under these indemnities. Environmental Matters We are subject to costs resulting from a number of federal, state and local laws and regulations which affect future planning and existing operations. They can result in increased capital expenditures, operating and other costs as a result of compliance, remediation and monitoring obligations. Due to the environmental issues discussed below, we may be required to modify, curtail, replace or cease operating certain facilities or operations to comply with statutes, regulations and other requirements of regulatory bodies. Air Our generation facilities are subject to federal, state and local laws and regulations relating to the protection of air quality. These laws and regulations cover, among other pollutants, carbon monoxide, SO 2 , NO x , mercury, hazardous air pollutants, particulate matter and GHG. Power generating facilities burning fossil fuels emit each of the foregoing pollutants and, therefore, are subject to substantial regulation and enforcement oversight by various governmental agencies. Title IV of the Clean Air Act applies to several of our generation facilities, including the Neil Simpson II, Neil Simpson CT, Lange CT, Wygen III and Wyodak plants. Title IV of the Clean Air Act created an SO 2 allowance trading program as part of the federal acid rain program. Without purchasing additional allowances, we currently hold sufficient allowances to satisfy Title IV at all such plants through 2046. The EPA issued the Industrial and Commercial Boiler Regulations for Area Sources of Hazardous Air Pollutants, with updates which impose emission limits, fuel requirements and monitoring requirements. The rule had a compliance deadline of March 21, 2014. In anticipation of this rule, we suspended operations at the Osage plant on October 1, 2010 and as a result of this rule, we suspended operations at the Ben French facility on August 31, 2012. We permanently retired Ben French, Osage and Neil Simpson I on March 21, 2014. The net book value of these plants was allowed regulatory accounting treatment and is recorded as a Regulatory Asset on the accompanying Balance Sheets. Solid Waste Disposal Various materials used at our facilities are subject to disposal regulations. Our Osage plant, permanently retired on March 21, 2014, had an on-site ash impoundment that was near capacity. An application to close the impoundment was approved on April 13, 2012. Site closure work was completed in 2013 with the state providing closure certification in 2014. Post closure monitoring activities will continue for 30 years. In September 2013, Osage also received a permit to close the small industrial rubble landfill. Site work was completed with the state providing closure certification in 2014. Post closure monitoring will continue for 30 years following the closure certification date. |
Quarterly Historical Data (Unau
Quarterly Historical Data (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Selected Quarterly Financial Information [Abstract] | |
Quarterly Historical Data (Unaudited) | QUARTERLY HISTORICAL DATA (Unaudited) We operate on a calendar year basis. The following table sets forth selected unaudited historical operating results data for each quarter (in thousands): First Quarter Second Quarter Third Quarter Fourth Quarter 2016 Operating revenues $ 68,642 $ 62,019 $ 66,728 $ 70,243 Operating income $ 20,780 $ 18,936 $ 22,410 $ 23,454 Net income $ 11,186 $ 9,806 $ 12,010 $ 12,136 2015 Operating revenues $ 70,283 $ 68,038 $ 72,111 $ 67,432 Operating income $ 21,490 $ 21,143 $ 23,456 $ 21,825 Net income $ 10,403 $ 10,547 $ 12,287 $ 11,937 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | SCHEDULE II BLACK HILLS POWER, INC. VALUATION AND QUALIFYING ACCOUNTS YEARS ENDED DECEMBER 31, Description Balance at beginning of year Additions charged to costs and expenses Deductions charged to costs and expenses Balance at end of year (in thousands) Allowance for doubtful accounts: 2016 $ 207 $ 644 $ (694 ) $ 157 2015 $ 261 $ 602 $ (656 ) $ 207 2014 $ 220 $ 699 $ (658 ) $ 261 |
Business Description and Summ22
Business Description and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Reclassification, Policy [Policy Text Block] | Revisions Certain revisions have been made to prior years’ financial information to conform to the current year presentation. We revised our presentation of cash and book overdrafts and certain cash transactions processed on behalf of affiliates. For accounts with the same financial institution where there is a banking arrangement that clears payments with balances in other bank accounts, book overdrafts are presented on a combined basis by bank as cash and cash equivalents. Cash collected or disbursed on behalf of affiliates is presented as Receivables - affiliates or Accounts Payable - affiliates. Prior year amounts were corrected to conform to the current year presentation, which decreased cash and cash equivalents by $7.3 million , $5.1 million and $1.5 million as of December 31, 2015, December 31, 2014 and December 31, 2013, respectively; increased Receivables - affiliates by $1.0 million , increased Accounts payable - affiliates by $0.6 million and decreased Accounts payable by $6.9 million as of December 31, 2015. It also decreased net cash flows provided by operations by $2.2 million and $3.6 million for the years ended December 31, 2015 and 2014 respectively. We assessed the materiality of these changes, taking into account quantitative and qualitative factors, and determined them to be immaterial to the balance sheet as of December 31, 2015 and to the statements of cash flows for the years ended December 31, 2015 and 2014. There is no impact to the Statements of Income, Statements of Comprehensive Income (Loss) or Statements of Common Stockholder’s Equity for any period reported. |
Basis of Presentation | Basis of Presentation The financial statements include the accounts of Black Hills Power, Inc. and also our ownership interests in the assets, liabilities and expenses of our jointly owned facilities (Note 3 ) and are prepared in accordance with GAAP. |
Use of Estimates and Basis of Presentation | Use of Estimates and Basis of Presentation The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Cash Equivalents | Cash Equivalents We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. |
Regulatory Accounting | Regulatory Accounting Our regulated electric operations are subject to regulation by various state and federal agencies. The accounting policies followed are generally subject to the Uniform System of Accounts of FERC. Our regulated utility operations follow accounting standards for regulated operations and our financial statements reflect the effects of the different rate making principles followed by the various jurisdictions regulating our electric operations. If rate recovery becomes unlikely or uncertain due to competition or regulatory action, these accounting standards may no longer apply to our regulated operations. In the event we determine that we no longer meet the criteria for following accounting standards for regulated operations, the accounting impact to us could be an extraordinary non-cash charge to operations in an amount that could be material. Regulatory assets are included in Regulatory assets, current and Regulatory assets, non-current on the accompanying Balance Sheets. Regulatory liabilities are included in Regulatory liabilities, current and Regulatory liabilities, non-current on the accompanying Balance Sheets. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable consists of sales to residential, commercial, industrial, municipal and other customers all of which do not bear interest. These accounts receivable are stated at billed and unbilled amounts net of write-offs or payment received. We maintain an allowance for doubtful accounts which reflects our best estimate of uncollectible trade receivables. We regularly review our trade receivable allowances by considering such factors as historical experience, credit worthiness, the age of the receivable balances and current economic conditions that may affect collectibility. The allowance is calculated by applying estimated write-off factors to various classes of outstanding receivables, including unbilled revenue. The write-off factors used to estimate uncollectible accounts are based upon consideration of both historical collections experience and management’s best estimate of future collection success given the existing collections environment. |
Revenue Recognition | Revenue Recognition Revenue is recognized when there is persuasive evidence of an arrangement with a fixed or determinable price, delivery has occurred or services have been rendered, and collectibility is reasonably assured. Sales and franchise taxes collected from our customers is recorded on a net basis (excluded from Revenue). Utility revenues are based on authorized rates approved by the state regulatory agencies and the FERC. Revenues related to the sale, transmission and distribution of energy, and delivery of service are generally recorded when service is rendered or energy is delivered to customers. To the extent that deliveries have occurred but a bill has not been issued, we accrue an estimate of the revenue since the latest billing. This estimate is calculated based upon several factors including billings through the last billing cycle in a month, and prices in effect in our jurisdictions. Each month a true-up of the estimated unbilled revenue amounts are recorded in Receivables- customers, net on the accompanying Balance Sheets. |
Materials, Supplies, and Fuel | Materials, Supplies and Fuel Materials, supplies and fuel used for construction, operation and maintenance purposes are generally stated on a weighted-average cost basis. |
Deferred Financing Costs | Deferred Financing Costs Deferred financing costs are amortized using the effective interest method over the term of the related debt. |
Property, Plant and Equipment | Property, Plant and Equipment Additions to property, plant and equipment are recorded at cost when placed in service. Included in the cost of regulated construction projects is AFUDC, which represents the approximate composite cost of borrowed funds and a return on equity used to finance a regulated utility project. The cost of regulated electric property, plant and equipment retired, or otherwise disposed of in the ordinary course of business, less salvage, is charged to accumulated depreciation. Removal costs associated with non-legal obligations are reclassified from accumulated depreciation and reflected as regulatory liabilities. Ordinary repairs and maintenance of property, except as allowed under rate regulations, are charged to operations as incurred. Depreciation provisions for regulated electric property, plant and equipment are computed on a straight-line basis using an annual composite rate of 2.2% in 2016 , 2.3% in 2015 and 2.3% in 2014 . |
Derivatives and Hedging Activities | Derivatives and Hedging Activities From time to time we utilize risk management contracts including forward purchases and sales to hedge the price of fuel for our combustion turbines and fixed-for-float swaps to fix the interest on any variable rate debt. Contracts that qualify as derivatives under accounting standards for derivatives, and that are not exempted such as normal purchase/normal sale, are required to be recorded in the balance sheet as either an asset or liability, measured at its fair value. Accounting standards for derivatives require that changes in the derivative instrument’s fair value be recognized currently in earnings unless specific hedge accounting criteria are met. Accounting standards for derivatives allow hedge accounting for qualifying fair value and cash flow hedges. Gain or loss on a derivative instrument designated and qualifying as a fair value hedging instrument as well as the offsetting loss or gain on the hedged item attributable to the hedged risk should be recognized currently in earnings in the same accounting period. Conversely, the effective portion of the gain or loss on a derivative instrument designated and qualifying as a cash flow hedging instrument should be reported as a component of other comprehensive income and be reclassified into earnings or as a regulatory asset or regulatory liability, net of tax, in the same period or periods during which the hedged forecasted transaction affects earnings. The remaining gain or loss on the derivative instrument, if any, is recognized currently in earnings. Revenues and expenses on contracts that qualify are designated as normal purchases and normal sales and are recognized when the underlying physical transaction is completed under the accrual basis of accounting. Normal purchases and normal sales are contracts where physical delivery is probable, quantities are expected to be used or sold in the normal course of business over a reasonable amount of time, and price is not tied to an unrelated underlying derivative. As part of our regulated electric operations, we enter into contracts to buy and sell energy to meet the requirements of our customers. These contracts include short-term and long-term commitments to purchase and sell energy in the retail and wholesale markets with the intent and ability to deliver or take delivery. If it was determined that a transaction designated as a normal purchase or normal sale no longer met the exceptions, the fair value of the related contract would be reflected as either an asset or liability, under the accounting standards for derivatives and hedging. |
Fair Value Measurements | Fair Value Measurements Accounting standards for fair value measurements provide a single definition of fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date and also requires disclosures and establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The fair value hierarchy ranks the quality and reliability of the information used to determine fair values giving the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Financial assets and liabilities carried at fair value are classified and disclosed in one of the following three categories: Level 1 - Unadjusted quoted prices available in active markets that are accessible at the measurement date for identical unrestricted assets or liabilities. Level 2 - Pricing inputs include quoted prices for identical or similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 - Pricing inputs include significant inputs that are generally less observable from objective sources. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets We periodically evaluate whether events and circumstances have occurred which may affect the estimated useful life or the recoverability of the remaining balance of our long-lived assets. If such events or circumstances were to indicate that the carrying amount of these assets was not recoverable, we would estimate the future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected future cash flows (undiscounted and without interest charges) was less than the carrying amount of the long-lived assets, we would recognize an impairment loss. |
Income Taxes | Income Taxes We file a federal income tax return with other members of the Parent’s consolidated group. For financial statement purposes, federal income taxes are allocated to the individual companies based on amounts calculated on a separate return basis. We use the liability method in accounting for income taxes. Under the liability method, deferred income taxes are recognized at currently enacted income tax rates, to reflect the tax effect of temporary differences between the financial and tax basis of assets and liabilities, as well as operating loss and tax credit carryforwards. Such temporary differences are the result of provisions in the income tax law that either require or permit certain items to be reported on the income tax return in a different period than they are reported in the financial statements. We recognize interest income or interest expense and penalties related to income tax matters in Income tax (expense) benefit on the Statements of Income. We account for uncertainty in income taxes recognized in the financial statements in accordance with accounting standards for income taxes. The unrecognized tax benefit is classified in Other, non-current liabilities on the accompanying Balance Sheets. |
New Accounting Pronouncements | Recently Issued and Adopted Accounting Standards Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments, ASU 2016-15 In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force). This ASU requires changes in the presentation of certain items including but not limited to debt prepayment or debt extinguishment costs; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies and distributions received from equity method investees. The ASU will be effective for fiscal years beginning after December 15 , 2017. We will use the retrospective transition method to adopt this standard with fiscal years beginning after December 15, 2017. The adoption of this standard will not have a material impact on our financial position, results of operations and cash flows. Leases, ASU 2016-02 In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which supersedes ASC 840, Leases . This ASU requires lessees to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. Lessees are permitted to make an accounting policy election to not recognize the asset and liability for leases with a term of 12 months or less. The ASU does not significantly change the lessees’ recognition, measurement and presentation of expenses and cash flows from the previous accounting standard. Lessors’ accounting under the ASC is largely unchanged from the previous accounting standard. In addition, the ASU expands the disclosure requirements of lease arrangements. Lessees and lessors will use a modified retrospective transition approach, which includes a number of practical expedients. The guidance is effective for us beginning after December 15, 2018. Early adoption is permitted. We are currently assessing the impact that adoption of ASU 2016-02 will have on our financial position, results of operations or cash flows. Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or its Equivalent), ASU 2015-07 On May 1, 2015, the FASB issued ASU 2015-07, Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or its Equivalent) . This ASU removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient and also removes certain disclosure requirements. The new requirements were effective for us beginning January 1, 2016 and were applied retrospectively to all periods presented, in our 2016 Form 10-K. This ASU did not materially affect our financial statements and disclosures, but did change certain presentation and disclosure of the fair value of certain plan assets in our pension and other postretirement benefit plan disclosures in our 2016 Form 10-K, for all periods presented. Simplifying the Presentation of Debt Issuance Costs, ASU 2015-03 In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs . Debt issuance costs related to a recognized debt liability will be presented on the balance sheet as a direct deduction from the debt liability, similar to the presentation of debt discounts, rather than as an asset. Amortization of these costs will continue to be reported as interest expense. ASU 2015-03 is effective for annual and interim reporting periods beginning after December 15, 2015. We adopted ASU 2015-03 in the first quarter of 2016 on a retrospective basis. As of December 31, 2016, we presented the debt issuance costs, previously reported in other assets, as direct deductions from the carrying amount of long-term debt. The implementation of this standard resulted in reductions of other assets, non-current and long-term debt of approximately $3.1 million in the Balance Sheets as of December 31, 2015. Revenue from Contracts with Customers, ASU 2014-09 In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers . The standard provides companies with a single model for use in accounting for revenue arising from contracts with customers and supersedes current revenue recognition guidance, including industry-specific revenue guidance. The core principle of the model is to recognize revenue when control of the goods or services transfers to the customer. The new disclosure requirements will provide information about the nature, amount, timing and uncertainty of revenue and cash flows from revenue contracts with customers. The guidance is effective for annual and interim reporting periods beginning after December 15, 2017 with early adoption on January 1, 2017 permitted. Entities will have the option of using either a full retrospective or modified retrospective approach to adopting this guidance. Under the modified approach, an entity would recognize the cumulative effect of initially applying the guidance with an adjustment to the opening balance of retained earnings in the period of adoption. We will adopt this standard for annual and interim reporting periods beginning after December 15, 2017 and are actively assessing all of our sources of revenue to determine the impact that adoption of the new standard will have on our financial position, results of operations and cash flows. Our evaluation includes identifying revenue streams by like contracts to allow for ease of implementation. A majority of our revenues are from regulated tariff offerings that provide electricity with a defined contractual term. For such arrangements, we expect that the revenue from contracts with the customer will be equivalent to the electricity delivered in that period. Therefore, we do not expect that there will be a significant shift in the timing or pattern of revenue recognition for regulated tariff-based sales. The evaluation of other revenue streams is ongoing, including those tied to longer term contractual commitments. However, a number of industry-specific implementation issues are still unresolved and the final resolution of these issues could impact our current accounting policies and/or patterns for revenue recognition, as well as the transition method selected. |
Business Description and Summ23
Business Description and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Regulatory Assets and Liabilities | We had the following regulatory assets and liabilities as follows as of December 31 (in thousands): Maximum Recovery Period (in years) 2016 2015 Regulatory assets: Unamortized loss on reacquired debt (a) 8 $ 1,815 $ 2,096 Deferred taxes on AFUDC (b) 45 9,367 8,571 Employee benefit plans (c) 12 20,100 20,866 Deferred energy costs (a) 1 23,016 19,875 Deferred taxes on flow through accounting (a) 35 12,545 12,104 Decommissioning costs (b) 8 12,456 13,686 Other regulatory assets (a) (d) 2 12,835 8,615 Total regulatory assets $ 92,134 $ 85,813 Regulatory liabilities: Cost of removal for utility plant (a) 61 $ 41,541 $ 38,131 Employee benefit plans (c) 12 12,304 12,616 Other regulatory liabilities (c) 13 105 836 Total regulatory liabilities $ 53,950 $ 51,583 ____________________ (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, respectively. (d) Includes vegetation management expense of approximately $12.0 million and $5.0 million in 2016 and 2015, respectively. |
Schedule of Accounts, Notes, Loans and Financing Receivable | Following is a summary of accounts receivable at December 31 (in thousands): 2016 2015 Accounts receivable trade $ 16,972 $ 15,268 Unbilled revenues 13,799 12,795 Allowance for doubtful accounts (157 ) (207 ) Net accounts receivable trade $ 30,614 $ 27,856 |
Schedule of Other Current Assets | The following amounts by major classification are included in Other current assets on the accompanying Balance Sheets as of (in thousands): December 31, 2016 December 31, 2015 Accrued receivables related to litigation expenses and settlements $ — $ 39,050 Other (none of which is individually significant) 3,876 4,068 Total other current assets $ 3,876 $ 43,118 |
Schedule of Accrued Liabilities | The following amounts by major classification are included in Accrued liabilities on the accompanying Balance Sheets as of (in thousands): December 31, 2016 December 31, 2015 Accrued employee compensation, benefits and withholdings $ 4,783 $ 5,054 Accrued property taxes 5,522 4,962 Accrued payments related to litigation expenses and settlements — 38,750 Accrued income taxes 17,069 13,031 Customer deposits and prepayments 2,825 2,216 Accrued interest and contract adjustment payments 4,614 4,600 Other (none of which is individually significant) 2,623 841 Total accrued liabilities $ 37,436 $ 69,454 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment at December 31 consisted of the following (dollars in thousands): 2016 2015 Weighted Weighted Average Average Lives (in years) 2016 Useful Life (in years) 2015 Useful Life (in years) Minimum Maximum Electric plant: Production $ 576,833 46 $ 569,182 46 30 63 Transmission 147,398 48 117,708 48 40 70 Distribution 364,304 46 353,241 46 15 75 Plant acquisition adjustment (a) 4,870 32 4,870 32 32 32 General 88,114 23 88,939 22 3 65 Total plant-in-service 1,181,519 1,133,940 Construction work in progress 54,868 32,186 Total electric plant 1,236,387 1,166,126 Less accumulated depreciation and amortization (338,828 ) (326,074 ) Electric plant net of accumulated depreciation and amortization $ 897,559 $ 840,052 __________________ (a) The plant acquisition adjustment is included in rate base and is being recovered with 14 years remaining. |
Jointly Owned Facilities (Table
Jointly Owned Facilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Jointly Owned Utility Plant, Net Ownership Amount [Abstract] | |
Schedule Of Jointly Owned Facilities | As of December 31, 2016 , our interests in jointly-owned generating facilities and transmission systems included on our Balance Sheets were as follows (in thousands): Interest in jointly-owned facilities Plant in Service Construction Work in Progress Accumulated Depreciation Wyodak Plant $ 113,611 $ 256 $ 55,878 Transmission Tie $ 19,978 $ 13 $ 5,793 Wygen III $ 138,261 $ 1,806 $ 17,635 Cheyenne Prairie $ 91,365 $ 155 $ 6,015 |
Long Term Debt (Tables)
Long Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Long-term Debt, Unclassified [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term debt outstanding at December 31 was as follows (in thousands): Maturity Date Interest Rate 2016 2015 First Mortgage Bonds due 2032 August 15, 2032 7.23 % $ 75,000 $ 75,000 First Mortgage Bonds due 2039 November 1, 2039 6.125 % 180,000 180,000 First Mortgage Bonds due 2044 October 20, 2044 4.43 % 85,000 85,000 Unamortized Discount, First Mortgage Bonds due 2039 (94 ) (99 ) Series 94A Debt (a) June 1, 2024 0.88 % 2,855 2,855 Unamortized Debt Expense (3,005 ) (3,140 ) Long-term Debt $ 339,756 $ 339,616 ___________________ (a) Variable interest rate at December 31, 2016. |
Schedule of Maturities of Long-term Debt | Scheduled maturities of our outstanding long-term debt (excluding unamortized discounts) are as follows (in thousands): 2017 $ — 2018 $ — 2019 $ — 2020 $ — 2021 $ — Thereafter $ 342,855 |
Fair Value of Financial Instr27
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | The estimated fair values of our financial instruments at December 31 were as follows (in thousands): 2016 2015 Carrying Value Fair Value Carrying Value Fair Value Cash and cash equivalents (a) $ 234 $ 234 $ 297 $ 297 Long-term debt (b) $ 339,756 $ 410,466 $ 339,616 $ 404,864 _______________ (a) Fair value approximates carrying value due to either short-term length of maturity or variable interest rates that approximate prevailing market rates and therefore is classified in Level 1 in the fair value hierarchy. (b) Long-term debt is valued using the market approach based on observable inputs of quoted market prices and yields available for debt instruments either directly or indirectly for similar maturities and debt ratings in active markets and therefore is classified in Level 2 in the fair value hierarchy. The carrying amount of our variable rate debt approximates fair value due to the variable interest rates with short reset periods. For additional information on our long-term debt see Note 4 . |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense (benefit) from continuing operations for the years ended December 31 was as follows (in thousands): 2016 2015 2014 Current $ 1,838 $ 14,910 $ (6 ) Deferred 20,690 7,690 16,518 Total income tax expense $ 22,528 $ 22,600 $ 16,512 |
Schedule of Deferred Tax Assets and Liabilities | The temporary differences, which gave rise to the net deferred tax liability, for the years ended December 31 were as follows (in thousands): 2016 2015 Deferred tax assets: Employee benefits $ 5,163 $ 4,683 Regulatory liabilities 9,099 9,908 Other 1,815 16,186 Total deferred tax assets 16,077 30,777 Deferred tax liabilities: Accelerated depreciation and other plant related differences (a) (202,047 ) (196,237 ) Regulatory assets (4,391 ) (4,236 ) Employee benefits (3,075 ) (3,003 ) Deferred costs (16,920 ) (14,765 ) Other (1,087 ) (1,497 ) Total deferred tax liabilities (227,520 ) (219,738 ) Net deferred tax assets (liabilities) $ (211,443 ) $ (188,961 ) _________________________ (a) To conform to the 2016 presentation of accelerated depreciation and other plant-related differences, 2015 is net of deferred tax liabilities of $8.6 million, previously presented as AFUDC Equity. |
Schedule of Effective Income Tax Rate Reconciliation | The effective tax rate differs from the federal statutory rate for the years ended December 31, as follows: 2016 2015 2014 Federal statutory rate 35.0 % 35.0 % 35.0 % Amortization of excess deferred and investment tax credits (0.4 ) (0.1 ) (0.3 ) AFUDC Equity (0.9 ) (0.6 ) (0.1 ) Flow through adjustments (a) (0.9 ) (0.9 ) (1.9 ) Tax credits (0.1 ) — (0.2 ) Other 0.6 — 0.5 33.3 % 33.4 % 33.0 % _________________________ (a) The flow-through adjustments related primarily to an accounting method change for tax purposes that allows us to take a current tax deduction for repair costs that continue to be capitalized for book purposes. We recorded a deferred income tax liability in recognition of the temporary difference created between book and tax treatment and we flowed the tax benefit through to tax expense. |
Summary of Deferred Tax Liability Not Recognized | The following table reconciles the total amounts of unrecognized tax benefits, without interest, included in Other deferred credits and other liabilities on the accompanying Balance Sheet (in thousands): 2016 2015 Unrecognized tax benefits at January 1 $ 2,264 $ 1,623 Additions for prior year tax positions 1,194 888 Reductions for prior year tax positions (682 ) (247 ) Settlements for prior year tax positions (2,283 ) — Unrecognized tax benefits at December 31 $ 493 $ 2,264 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Reclassification out of Accumulated Other Comprehensive Income | The components of the reclassification adjustments for the period, net of tax, included in Other Comprehensive Income were as follows (in thousands): Location on the Statements of Income Amounts Reclassified from AOCI 2016 2015 Gains and Losses on cash flow hedges: Interest rate swaps gain (loss) Interest expense $ 64 $ 64 Income tax Income tax benefit (expense) (22 ) 319 Total reclassification adjustments related to cash flow hedges, net of tax $ 42 $ 383 Amortization of defined benefit plans: Actuarial gain (loss) Operations and maintenance $ 82 $ 94 Income tax Income tax benefit (expense) (29 ) (33 ) Total reclassification adjustments related to defined benefit plans, net of tax $ 53 $ 61 |
Schedule of Accumulated Other Comprehensive Income (Loss) | Balances by classification included within Accumulated other comprehensive loss on the accompanying Balance Sheets were as follows (in thousands): Interest Rate Swaps Employee Benefit Plans Total As of December 31, 2015 $ (635 ) $ (672 ) $ (1,307 ) Other comprehensive income (loss) 42 3 45 As of December 31, 2016 $ (593 ) $ (669 ) $ (1,262 ) Interest Rate Swaps Employee Benefit Plans Total As of December 31, 2014 $ (1,018 ) $ (801 ) $ (1,819 ) Other comprehensive income (loss) 383 129 512 As of December 31, 2015 $ (635 ) $ (672 ) $ (1,307 ) |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Allocation of Plan Assets | The percentages of total plan asset fair value by investment category of our Pension Plan assets at December 31 were as follows: 2016 2015 Equity securities 28 % 26 % Real estate 5 5 Fixed income funds 57 59 Cash and cash equivalents 2 1 Hedge funds 8 9 Total 100 % 100 % |
Schedule of Contribution to Employee Plans | Contributions for the years ended December 31 were as follows (in thousands): 2016 2015 Defined Benefit Plans Defined Benefit Pension Plan $ 820 $ — Defined Benefit Postretirement Healthcare Plan $ 279 $ 267 Supplemental Non-qualified Defined Benefit Plan $ 221 $ 211 Defined Contribution Plans Company Retirement Contribution $ 851 $ 811 Matching Contributions $ 1,400 $ 1,423 |
Schedule of Changes in Projected Benefit Obligations | The following tables provide a reconciliation of the Employee Benefit Plan’s obligations and fair value of assets, components of the net periodic expense and elements of regulatory assets and liabilities and AOCI (in thousands): Benefit Obligations Defined Benefit Pension Plan Supplemental Non-qualified Defined Benefit Retirement Plans Defined Benefit Postretirement Healthcare Plan 2016 2015 2016 2015 2016 2015 Change in benefit obligation: Projected benefit obligation at beginning of year $ 65,959 $ 71,178 $ 3,426 $ 3,599 $ 6,208 $ 6,038 Service cost 606 797 — — 204 233 Interest cost 2,499 2,956 122 142 187 214 Actuarial loss (gain) 455 (5,650 ) 78 (104 ) (446 ) 27 Benefits paid (3,215 ) (3,284 ) (222 ) (211 ) (420 ) (387 ) Plan participants transfer to affiliate (a) (1,331 ) (38 ) — — (31 ) (7 ) Medicare Part D adjustment — — — — — (30 ) Plan participants’ contributions — — — — 141 120 Projected benefit obligation at end of year $ 64,973 $ 65,959 $ 3,404 $ 3,426 $ 5,843 $ 6,208 |
Schedule of Changes in Fair Value of Plan Assets | A reconciliation of the fair value of Plan assets (as of the December 31 measurement date) is as follows (in thousands): Defined Benefit Pension Plan Supplemental Non-qualified Defined Benefit Retirement Plans Defined Benefit Postretirement Healthcare Plan 2016 2015 2016 2015 2016 2015 Beginning fair value of plan assets $ 54,723 $ 59,098 $ — $ — $ — $ — Investment income (loss) 2,485 (1,057 ) — — — — Benefits paid (3,215 ) (3,284 ) (221 ) (211 ) (420 ) (387 ) Participant contributions — — — — 279 120 Employer contributions 820 — 221 211 141 267 Plan participants transfer to affiliate (a) (925 ) (34 ) — — — — Ending fair value of plan assets $ 53,888 $ 54,723 $ — $ — $ — $ — __________________ (a) Change is related to the merger of the three defined benefit pension plans maintained by Black Hills Corporation into one plan as of December 31, 2016. |
Schedule of Amounts Recognized in Balance Sheet | The funded status of the plans and amounts recognized in the Balance Sheets at December 31 consist of (in thousands): Defined Benefit Pension Plan Supplemental Non-qualified Defined Benefit Retirement Plans Non-pension Defined Benefit Postretirement Plan 2016 2015 2016 2015 2016 2015 Regulatory asset (liability) $ 18,974 $ 19,816 $ — $ — $ (2,087 ) $ (1,946 ) Current liability $ — $ — $ (247 ) $ (216 ) $ (541 ) $ (619 ) Non-current liability $ (11,085 ) $ (11,236 ) $ (3,157 ) $ (3,210 ) $ (5,302 ) $ (5,587 ) |
Schedule of Accumulated and Projected Benefit Obligations | Accumulated Benefit Obligation (in thousands) Defined Benefit Pension Plan Supplemental Non-qualified Defined Benefit Retirement Plans Non-pension Defined Benefit Postretirement Healthcare Plan 2016 2015 2016 2015 2016 2015 Accumulated benefit obligation $ 61,585 $ 62,240 $ 3,404 $ 3,426 $ 5,843 $ 6,208 |
Schedule of Net Benefit Costs | Components of Net Periodic Expense (in thousands) Defined Benefit Pension Plan Supplemental Non-qualified Defined Benefit Retirement Plans Non-pension Defined Benefit Postretirement Healthcare Plan 2016 2015 2014 2016 2015 2014 2016 2015 2014 Service cost $ 606 $ 797 $ 704 $ — $ — $ — $ 204 $ 233 $ 222 Interest cost 2,499 2,956 2,991 122 142 146 187 214 241 Expected return on assets (3,632 ) (3,935 ) (3,702 ) — — — — — — Amortization of prior service cost (credits) 43 43 43 — — — (337 ) (336 ) (335 ) Recognized net actuarial loss (gain) 1,995 2,196 940 82 93 45 — — — Net periodic expense $ 1,511 $ 2,057 $ 976 $ 204 $ 235 $ 191 $ 54 $ 111 $ 128 |
Schedule of Net Periodic Benefit Cost Not yet Recognized | Amounts included in AOCI, after-tax, that have not yet been recognized as components of net periodic benefit cost at December 31 were as follows (in thousands): Defined Benefit Pension Plan Supplemental Non-qualified Defined Benefit Retirement Plans Non-pension Defined Benefit Postretirement Healthcare Plan 2016 2015 2016 2015 2016 2015 Net loss $ — $ — $ 669 $ 672 $ — $ — Prior service cost — — — — — — Total accumulated other comprehensive income (loss) $ — $ — $ 669 $ 672 $ — $ — |
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year | The amounts in AOCI, regulatory assets or regulatory liabilities, after-tax, expected to be recognized as a component of net periodic benefit cost during calendar year 2017 are as follows (in thousands): Defined Benefits Pension Plan Supplemental Non-qualified Defined Benefit Retirement Plans Non-pension Defined Benefit Postretirement Healthcare Plan Net gain (loss) $ 799 $ 51 $ — Prior service cost 28 — (218 ) Total net periodic benefit cost expected to be recognized during calendar year 2017 $ 827 $ 51 $ (218 ) |
Schedule of Assumptions Used | Assumptions Defined Benefit Pension Plan Supplemental Non-qualified Defined Benefit Retirement Plans Non-pension Defined Benefit Postretirement Healthcare Plan 2016 2015 2014 2016 2015 2014 2016 2015 2014 Weighted-average assumptions used to determine benefit obligations: Discount rate 4.27 % 4.63 % 4.25 % 4.12 % 4.29 % 3.98 % 3.84 % 4.03 % 3.70 % Rate of increase in compensation levels 3.47 % 3.57 % 3.86 % N/A N/A N/A N/A N/A N/A Weighted-average assumptions used to determine net periodic benefit cost for plan year: Discount rate (a) 4.63 % 4.25 % 5.10 % 4.29 % 3.98 % 4.68 % 4.03 % 3.70 % 4.45 % Expected long-term rate of return on assets (b) 6.75 % 6.75 % 6.75 % N/A N/A N/A N/A N/A N/A Rate of increase in compensation levels 3.57 % 3.86 % 3.86 % N/A N/A N/A N/A N/A N/A _____________________________ (a) The estimated discount rate for the merged Black Hills Corporation’s Retirement Plan is 4.27% for the calculation of the 2017 net periodic pension costs. (b) The expected rate of return on plan assets is 6.75% for the calculation of the 2017 net periodic pension cost. |
Schedule of Health Care Cost Trend Rates | The healthcare benefit obligation was determined at December 31 as follows: 2016 2015 Healthcare trend rate pre-65 Trend for next year 6.10 % 6.35 % Ultimate trend rate 4.50 % 4.50 % Year Ultimate Trend Reached 2024 2024 Healthcare trend rate post-65 Trend for next year 5.10 % 5.20 % Ultimate trend rate 4.50 % 4.50 % Year Ultimate Trend Reached 2023 2023 |
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | The table below shows the estimated impacts of an increase or decrease to our healthcare trend rate for our Retiree Health Care Plan (in thousands): Change in Assumed Trend Rate Service and Interest Costs Accumulated Periodic Postretirement Benefit Obligation 1% increase $ 5 $ 125 1% decrease $ (5 ) $ (121 ) |
Schedule of Expected Benefit Payments | The following benefit payments, which reflect future service, are expected to be paid (in thousands): Defined Benefit Pension Plan Supplemental Non-qualified Defined Benefit Retirement Plans Defined Benefit Postretirement Healthcare Plan 2017 $ 3,946 $ 247 $ 541 2018 $ 3,543 $ 243 $ 562 2019 $ 3,669 $ 241 $ 577 2020 $ 3,766 $ 237 $ 585 2021 $ 3,883 $ 330 $ 570 2022-2026 $ 20,663 $ 1,519 $ 2,456 |
Defined Benefit Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Allocation of Plan Assets | The following tables set forth, by level within the fair value hierarchy, the assets that were accounted for at fair value on a recurring basis as of December 31 (in thousands): Defined Benefit Pension Plan 2016 Level 1 Level 2 Level 3 NAV (a) Total Fair Value Common Collective Trust - Cash and Cash Equivalents $ — $ 980 $ — — $ 980 Common Collective Trust - Equity — 14,927 — — 14,927 Common Collective Trust - Fixed Income — 31,003 — — 31,003 Common Collective Trust - Real Estate — 347 — 2,300 2,647 Hedge Funds — — — 4,331 4,331 Total investments measured at fair value $ — $ 47,257 $ — 6,631 $ 53,888 Defined Benefit Pension Plan 2015 Level 1 Level 2 Level 3 NAV (a) Total Fair Value Common Collective Trust - Cash and Cash Equivalents $ — $ 498 $ — — $ 498 Common Collective Trust - Equity — 14,198 — — $ 14,198 Common Collective Trust - Fixed Income — 32,615 — — $ 32,615 Common Collective Trust - Real Estate — 418 — 2,113 $ 2,531 Hedge Funds — — — 4,881 4,881 Total investments measured at fair value $ — $ 47,729 $ — 6,994 $ 54,723 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Accounts Receivable and Payable | We have accounts receivable and accounts payable balances related to transactions with other BHC subsidiaries. These balances as of December 31 were as follows (in thousands): 2016 2015 Receivable - affiliates $ 9,526 $ 6,734 Accounts payable - affiliates $ 31,799 $ 30,582 |
Schedule of Related Party Notes and Associated Interest Income Expense | We had the following balances with the Utility Money Pool as of December 31 (in thousands): 2016 2015 Notes receivable (payable), net $ 28,409 $ 76,813 |
Schedule of Related Party Interest Income Expense | nterest income relating to the Utility Money Pool for the years ended December 31, was as follows (in thousands): 2016 2015 2014 Interest income $ 1,047 $ 1,153 $ 304 |
Schedule of Revenues and Purchases from Related Parties | We had the following related-party transactions for the years ended December 31 included in the corresponding captions in the accompanying Statements of Income: 2016 2015 2014 (in thousands) Revenues: Energy sold to Wyoming Electric $ 2,440 $ 1,857 $ 1,894 Rent from electric properties $ 5,046 $ 4,772 $ 4,102 Purchases: Purchase of coal from WRDC $ 16,227 $ 16,401 $ 16,861 Purchase of excess energy from Wyoming Electric $ 252 $ 898 $ 3,033 Purchase of renewable wind energy from Wyoming Electric - Happy Jack $ 1,918 $ 1,578 $ 1,959 Purchase of renewable wind energy from Wyoming Electric - Silver Sage $ 3,300 $ 2,739 $ 3,200 Corporate support services from Parent, Black Hills Service Company and Black Hills Utility Holdings $ 25,748 $ 26,655 $ 32,332 |
Supplemental Cash Flow Inform32
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | Years ended December 31, 2016 2015 2014 (in thousands) Non-cash investing and financing activities - Property, plant and equipment acquired with accrued liabilities $ 5,521 $ 3,870 $ 4,234 Non-cash decrease to money pool note receivable, net $ (52,500 ) $ (28,501 ) $ — Non-cash dividend to Parent company $ 52,500 $ 28,501 $ — Supplemental disclosure of cash flow information: Cash (paid) refunded during the period for - Interest (net of amounts capitalized) $ (21,320 ) $ (21,913 ) $ (19,573 ) Income taxes $ — $ — $ — |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Long-term Purchase Commitment | Costs incurred under these agreements were as follows for the years ended December 31 (in thousands): Contract Contract Type 2016 2015 2014 PacifiCorp Electric capacity and energy $ 12,221 $ 13,990 $ 13,943 PacifiCorp Transmission access $ 1,428 $ 1,213 $ 1,227 Thunder Creek Gas transport capacity $ 633 $ 633 $ 633 |
Unrecorded Unconditional Purchase Obligations Disclosure | The following is a schedule of future minimum payments required under power purchase, transmission services, facility and vehicle leases, and gas supply agreements (in thousands): 2017 $ 13,091 2018 $ 6,388 2019 $ 6,388 2020 $ 6,388 2021 $ 5,755 Thereafter $ 11,510 |
Quarterly Historical Data (Un34
Quarterly Historical Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Selected Quarterly Financial Information [Abstract] | |
Schedule of Quarterly Financial Information | The following table sets forth selected unaudited historical operating results data for each quarter (in thousands): First Quarter Second Quarter Third Quarter Fourth Quarter 2016 Operating revenues $ 68,642 $ 62,019 $ 66,728 $ 70,243 Operating income $ 20,780 $ 18,936 $ 22,410 $ 23,454 Net income $ 11,186 $ 9,806 $ 12,010 $ 12,136 2015 Operating revenues $ 70,283 $ 68,038 $ 72,111 $ 67,432 Operating income $ 21,490 $ 21,143 $ 23,456 $ 21,825 Net income $ 10,403 $ 10,547 $ 12,287 $ 11,937 |
Business Description and Summ35
Business Description and Summary of Significant Accounting Policies: Reclassifications (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net Cash Provided By Operating Activities | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Prior Period Reclassification Adjustment | $ (2.2) | $ (3.6) | |
Cash and cash equivalents | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Prior Period Reclassification Adjustment | (7.3) | $ (5.1) | $ (1.5) |
Receivables - affiliates | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Prior Period Reclassification Adjustment | 1 | ||
Accounts payable - affiliates | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Prior Period Reclassification Adjustment | 0.6 | ||
Accounts payable | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Prior Period Reclassification Adjustment | $ (6.9) |
Business Description and Summ36
Business Description and Summary of Significant Accounting Policies: Regulatory Assets and Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule Of Regulatory Assets And Liabilities [Line Items] | ||
Regulatory Assets | $ 92,134 | $ 85,813 |
Regulatory Liabilities | $ 53,950 | 51,583 |
Cost of removal for utility plant | ||
Schedule Of Regulatory Assets And Liabilities [Line Items] | ||
Regulatory Liabilities, Maximum Recovery Period | 61 years | |
Regulatory Liabilities | $ 41,541 | 38,131 |
Employee benefit plans | ||
Schedule Of Regulatory Assets And Liabilities [Line Items] | ||
Regulatory Liabilities, Maximum Recovery Period | 12 years | |
Regulatory Liabilities | $ 12,304 | 12,616 |
Other regulatory liabilities | ||
Schedule Of Regulatory Assets And Liabilities [Line Items] | ||
Regulatory Liabilities, Maximum Recovery Period | 13 years | |
Regulatory Liabilities | $ 105 | 836 |
Unamortized loss on reacquired debt | ||
Schedule Of Regulatory Assets And Liabilities [Line Items] | ||
Regulatory Assets, Maximum Recovery Period | 8 years | |
Regulatory Assets | $ 1,815 | 2,096 |
Allowance for Funds Used During Construction | ||
Schedule Of Regulatory Assets And Liabilities [Line Items] | ||
Regulatory Assets, Maximum Recovery Period | 45 years | |
Regulatory Assets | $ 9,367 | 8,571 |
Employee benefit plans | ||
Schedule Of Regulatory Assets And Liabilities [Line Items] | ||
Regulatory Assets, Maximum Recovery Period | 12 years | |
Regulatory Assets | $ 20,100 | 20,866 |
Deferred energy costs | ||
Schedule Of Regulatory Assets And Liabilities [Line Items] | ||
Regulatory Assets, Maximum Recovery Period | 1 year | |
Regulatory Assets | $ 23,016 | 19,875 |
Flow through accounting | ||
Schedule Of Regulatory Assets And Liabilities [Line Items] | ||
Regulatory Assets, Maximum Recovery Period | 35 years | |
Regulatory Assets | $ 12,545 | 12,104 |
Decommissioning costs | ||
Schedule Of Regulatory Assets And Liabilities [Line Items] | ||
Regulatory Assets, Maximum Recovery Period | 8 years | |
Regulatory Assets | $ 12,456 | 13,686 |
Other Regulatory Assets | ||
Schedule Of Regulatory Assets And Liabilities [Line Items] | ||
Regulatory Assets, Maximum Recovery Period | 2 years | |
Regulatory Assets | $ 12,835 | 8,615 |
Vegetation Management | ||
Schedule Of Regulatory Assets And Liabilities [Line Items] | ||
Regulatory Assets | $ 12,000 | $ 5,000 |
Business Description and Summ37
Business Description and Summary of Significant Accounting Policies: Accounts Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for doubtful accounts | $ (157) | $ (207) |
Net accounts receivable | 30,614 | 27,856 |
Billed Revenues | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, trade | 16,972 | 15,268 |
Unbilled Revenues | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, trade | $ 13,799 | $ 12,795 |
Business Description and Summ38
Business Description and Summary of Significant Accounting Policies: Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accrued receivables related to litigation expenses and settlements | $ 0 | $ 39,050 |
Other (none of which is individually significant) | 3,876 | 4,068 |
Total other current assets | $ 3,876 | $ 43,118 |
Business Description and Summ39
Business Description and Summary of Significant Accounting Policies: Property, Plant and Equipment (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Composite Depreciation Rate for Plants in Service | 2.20% | 2.30% | 2.30% |
Business Description and Summ40
Business Description and Summary of Significant Accounting Policies: Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Employee-related Liabilities, Current | $ 4,783 | $ 5,054 |
Accrual for Taxes Other than Income Taxes, Current | 5,522 | 4,962 |
Loss Contingency, Accrual, Current | 0 | 38,750 |
Accrued Income Taxes | 17,069 | 13,031 |
Customer Advances and Deposits, Current | 2,825 | 2,216 |
Interest Payable, Current | 4,614 | 4,600 |
Other Accrued Liabilities, Current | 2,623 | 841 |
Accrued liabilities | $ 37,436 | $ 69,454 |
Business Description and Summ41
Business Description and Summary of Significant Accounting Policies: Reclass of Debt Issuance Costs (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Other Assets, Non-Current | |
Prior Period Reclassification Adjustment | $ (3.1) |
Long-term Debt | |
Prior Period Reclassification Adjustment | $ (3.1) |
Property, Plant and Equipment42
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Public Utilities, Property, Plant and Equipment, Net [Abstract] | ||
Total plant-in-service | $ 1,181,519 | $ 1,133,940 |
Construction work in progress | 54,868 | 32,186 |
Total electric plant | 1,236,387 | 1,166,126 |
Less accumulated depreciation and amortization | (338,828) | (326,074) |
Electric plant net of accumulated depreciation and amortization | $ 897,559 | 840,052 |
Remaining amortization period | 14 years | |
Electric Production | ||
Public Utilities, Property, Plant and Equipment, Net [Abstract] | ||
Production | $ 576,833 | $ 569,182 |
Electric Production | Weighted average useful life | ||
Public Utilities, Property, Plant and Equipment, Net [Abstract] | ||
Useful Life (in years) | 46 years | 46 years |
Electric Production | Minimum | ||
Public Utilities, Property, Plant and Equipment, Net [Abstract] | ||
Useful Life (in years) | 30 years | |
Electric Production | Maximum | ||
Public Utilities, Property, Plant and Equipment, Net [Abstract] | ||
Useful Life (in years) | 63 years | |
Electric Transmission | ||
Public Utilities, Property, Plant and Equipment, Net [Abstract] | ||
Transmission | $ 147,398 | $ 117,708 |
Electric Transmission | Weighted average useful life | ||
Public Utilities, Property, Plant and Equipment, Net [Abstract] | ||
Useful Life (in years) | 48 years | 48 years |
Electric Transmission | Minimum | ||
Public Utilities, Property, Plant and Equipment, Net [Abstract] | ||
Useful Life (in years) | 40 years | |
Electric Transmission | Maximum | ||
Public Utilities, Property, Plant and Equipment, Net [Abstract] | ||
Useful Life (in years) | 70 years | |
Electric Distribution | ||
Public Utilities, Property, Plant and Equipment, Net [Abstract] | ||
Distribution | $ 364,304 | $ 353,241 |
Electric Distribution | Weighted average useful life | ||
Public Utilities, Property, Plant and Equipment, Net [Abstract] | ||
Useful Life (in years) | 46 years | 46 years |
Electric Distribution | Minimum | ||
Public Utilities, Property, Plant and Equipment, Net [Abstract] | ||
Useful Life (in years) | 15 years | |
Electric Distribution | Maximum | ||
Public Utilities, Property, Plant and Equipment, Net [Abstract] | ||
Useful Life (in years) | 75 years | |
Plant Acquisition Adjustment | ||
Public Utilities, Property, Plant and Equipment, Net [Abstract] | ||
Plant acquisition adjustment | $ 4,870 | $ 4,870 |
Plant Acquisition Adjustment | Weighted average useful life | ||
Public Utilities, Property, Plant and Equipment, Net [Abstract] | ||
Useful Life (in years) | 32 years | 32 years |
Plant Acquisition Adjustment | Minimum | ||
Public Utilities, Property, Plant and Equipment, Net [Abstract] | ||
Useful Life (in years) | 32 years | |
Plant Acquisition Adjustment | Maximum | ||
Public Utilities, Property, Plant and Equipment, Net [Abstract] | ||
Useful Life (in years) | 32 years | |
General | ||
Public Utilities, Property, Plant and Equipment, Net [Abstract] | ||
General | $ 88,114 | $ 88,939 |
General | Weighted average useful life | ||
Public Utilities, Property, Plant and Equipment, Net [Abstract] | ||
Useful Life (in years) | 23 years | 22 years |
General | Minimum | ||
Public Utilities, Property, Plant and Equipment, Net [Abstract] | ||
Useful Life (in years) | 3 years | |
General | Maximum | ||
Public Utilities, Property, Plant and Equipment, Net [Abstract] | ||
Useful Life (in years) | 65 years |
Jointly Owned Facilities (Detai
Jointly Owned Facilities (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($)MW | |
Wyodak Plant | |
Jointly Owned Utility Plant Interests [Line Items] | |
Proportionate Ownership Percentage | 20.00% |
Plant in Service | $ 113,611 |
Construction Work in Progress | 256 |
Accumulated Depreciation | $ 55,878 |
Transmission Tie | |
Jointly Owned Utility Plant Interests [Line Items] | |
Proportionate Ownership Percentage | 35.00% |
Plant in Service | $ 19,978 |
Construction Work in Progress | 13 |
Accumulated Depreciation | $ 5,793 |
Wygen I I I Generating Facility | |
Jointly Owned Utility Plant Interests [Line Items] | |
Proportionate Ownership Percentage | 52.00% |
Plant in Service | $ 138,261 |
Construction Work in Progress | 1,806 |
Accumulated Depreciation | $ 17,635 |
Cheyenne Prairie | |
Jointly Owned Utility Plant Interests [Line Items] | |
Electric Generation Capacity, Megawatts | MW | 55 |
Plant in Service | $ 91,365 |
Construction Work in Progress | 155 |
Accumulated Depreciation | $ 6,015 |
Cheyenne Prairie | Wyoming Electric | |
Jointly Owned Utility Plant Interests [Line Items] | |
Electric Generation Capacity, Megawatts | MW | 40 |
Long Term Debt (Details)
Long Term Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||
Debt Issuance Costs, Net | $ 3,005 | $ 3,140 | |
Long-term Debt | 339,756 | 339,616 | |
Deferred Finance Costs, Noncurrent, Net | 3,000 | 3,100 | |
Amortization of Financing Costs | $ 100 | 100 | $ 100 |
First Mortgage Bonds Due 2032 | |||
Debt Instrument [Line Items] | |||
Interest Rate, Stated Percentage | 7.23% | ||
Long-term Debt, Gross | $ 75,000 | 75,000 | |
First Mortgage Bonds Due 2039 | |||
Debt Instrument [Line Items] | |||
Interest Rate, Stated Percentage | 6.125% | ||
Long-term Debt, Gross | $ 180,000 | 180,000 | |
Unamortized Discount | $ (94) | (99) | |
First Mortgage Bonds Due 2044 | |||
Debt Instrument [Line Items] | |||
Interest Rate, Stated Percentage | 4.43% | ||
Long-term Debt, Gross | $ 85,000 | 85,000 | |
Bonds Due 2024 | |||
Debt Instrument [Line Items] | |||
Variable Interest, Percentage Rate | 0.88% | ||
Long-term Debt, Gross | $ 2,855 | $ 2,855 |
Long-Term Debt_ Schedule of Mat
Long-Term Debt: Schedule of Maturities of Long-term Debt (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Long-term Debt, Unclassified [Abstract] | |
2,017 | $ 0 |
2,018 | 0 |
2,019 | 0 |
2,020 | 0 |
2,021 | 0 |
Thereafter | $ 342,855 |
Fair Value of Financial Instr46
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents - carrying value | $ 234 | $ 297 | $ 1,542 | $ 800 |
Long-term debt, including current maturities - carrying value | 339,756 | 339,616 | ||
Carrying Value | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents - carrying value | 234 | 297 | ||
Long-term debt, including current maturities - carrying value | 339,756 | 339,616 | ||
Fair Value | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents - fair value | 234 | 297 | ||
Long-term debt, including current maturities - fair value | $ 410,466 | $ 404,864 |
Income Taxes_ Current and Defer
Income Taxes: Current and Deferred Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Current | $ 1,838 | $ 14,910 | $ (6) |
Deferred | 20,690 | 7,690 | 16,518 |
Total income tax expense | $ 22,528 | $ 22,600 | $ 16,512 |
Income Taxes_ Deferred Income T
Income Taxes: Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Components of Deferred Tax Assets [Abstract] | ||
Employee benefits | $ 5,163 | $ 4,683 |
Regulatory liabilities | 9,099 | 9,908 |
Other | 1,815 | 16,186 |
Total deferred tax assets | 16,077 | 30,777 |
Components of Deferred Tax Liabilities [Abstract] | ||
Accelerated depreciation and other plant related differences | (202,047) | (196,237) |
Regulatory assets | (4,391) | (4,236) |
Employee benefits | (3,075) | (3,003) |
Deferred costs | (16,920) | (14,765) |
Other | (1,087) | (1,497) |
Total deferred tax liabilities | (227,520) | (219,738) |
Net deferred tax assets (liabilities) | $ (211,443) | $ (188,961) |
Income Taxes_ Effective Tax Rat
Income Taxes: Effective Tax Rate Differences from Statutory Tax Rates (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory rate | 35.00% | 35.00% | 35.00% |
Amortization of excess deferred and investment tax credits, percent | (0.40%) | (0.10%) | (0.30%) |
AFUDC Equity, percent | (0.90%) | (0.60%) | (0.10%) |
Flow through adjustments, percent | (0.90%) | (0.90%) | (1.90%) |
Tax credits, percent | (0.10%) | (0.00%) | (0.20%) |
Other, percent | 0.60% | 0.00% | 0.50% |
Effective Income Tax Rate | 33.30% | 33.40% | 33.00% |
Income Taxes_ Reconciliation of
Income Taxes: Reconciliation of unrecognized tax benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Beginning of Period | $ 2,264 | $ 1,623 |
Additions for prior year tax positions | 1,194 | 888 |
Reductions for prior year tax positions | (682) | (247) |
Settlements for prior year tax positions | (2,283) | 0 |
End of Period | 493 | $ 2,264 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 200 |
Income Taxes_ Interest, Penalti
Income Taxes: Interest, Penalties and Audits (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Income Tax Disclosure [Abstract] | |
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | $ 2.9 |
Unrecognized Tax Benefits, Decreases Resulting from Settlements with Taxing Authorities, Affecting Accumulated Deferred Income Taxes | 0.6 |
Unrecognized Tax Benefits, Decreases Resulting from Settlements with Taxing Authorities, Affecting Current Taxes Payable | $ 2.3 |
Comprehensive Income_ Other Com
Comprehensive Income: Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||||||||
Interest Costs Incurred | $ (22,908) | $ (22,337) | $ (20,569) | ||||||||
Income tax expense | (22,528) | (22,600) | (16,512) | ||||||||
Net income | $ 12,136 | $ 12,010 | $ 9,806 | $ 11,186 | $ 11,937 | $ 12,287 | $ 10,547 | $ 10,403 | 45,138 | 45,174 | $ 33,562 |
First Mortgage Bonds Due 2032 | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||||||||
Derivative, Notional Amount | 50,000 | 50,000 | |||||||||
Realized Loss Included Accumulated Other Comprehensive Income (Loss) | $ 1,800 | 1,800 | |||||||||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||||||||
Income tax expense | (22) | 319 | |||||||||
Net income | 42 | 383 | |||||||||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | Reclassification out of Accumulated Other Comprehensive Income | Interest Rate Contract | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||||||||
Interest Costs Incurred | 64 | 64 | |||||||||
Accumulated Defined Benefit Plans Adjustment, Net Unamortized Gain (Loss) | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||||||||
Utilities Operating Expense, Maintenance, Operations, and Other Costs and Expenses | 82 | 94 | |||||||||
Accumulated Defined Benefit Plans Adjustment | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||||||||
Income tax expense | (29) | (33) | |||||||||
Net income | $ 53 | $ 61 |
Comprehensive Income_ Accumulat
Comprehensive Income: Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Period Start | $ (1,307) | $ (1,819) | |
Other comprehensive income (loss) | 45 | 512 | $ (622) |
Accumulated Other Comprehensive Income (Loss), Net of Tax, Period End | (1,262) | (1,307) | (1,819) |
Interest Rate Swaps, Cash Flow Hedges, AOCI | Interest Rate Swaps | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Period Start | (635) | (1,018) | |
Other comprehensive income (loss) | 42 | 383 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax, Period End | (593) | (635) | (1,018) |
Employee Benefit Plans, AOCI | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Period Start | (672) | (801) | |
Other comprehensive income (loss) | 3 | 129 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax, Period End | $ (669) | $ (672) | $ (801) |
Employee Benefit Plans_ Narrati
Employee Benefit Plans: Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target Plan Asset Allocations, percent | 100.00% | 100.00% | |
Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets | 6.75% | 6.75% | |
Equity Securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target Plan Asset Allocations, percent | 28.00% | 26.00% | |
Fixed Income Funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target Plan Asset Allocations, percent | 57.00% | 59.00% | |
Defined Benefit Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets | 6.75% | 6.75% | 6.75% |
Defined Benefit Pension Plan | Equity Securities | Minimum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target Plan Asset Allocations, percent | 44.00% | ||
Defined Benefit Pension Plan | Equity Securities | Maximum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target Plan Asset Allocations, percent | 52.00% | ||
Defined Benefit Pension Plan | Fixed Income Funds | Minimum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target Plan Asset Allocations, percent | 48.00% | ||
Defined Benefit Pension Plan | Fixed Income Funds | Maximum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target Plan Asset Allocations, percent | 56.00% |
Employee Benefit Plans_ Target
Employee Benefit Plans: Target Plan Assets Allocation (Details) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Target Plan Asset Allocations, percent | 100.00% | 100.00% |
Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Plan Asset Allocations, percent | 28.00% | 26.00% |
Real Estate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Plan Asset Allocations, percent | 5.00% | 5.00% |
Fixed Income Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Plan Asset Allocations, percent | 57.00% | 59.00% |
Cash and Cash Equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Plan Asset Allocations, percent | 2.00% | 1.00% |
Hedge Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Plan Asset Allocations, percent | 8.00% | 9.00% |
Employee Benefit Plans_ Plan Co
Employee Benefit Plans: Plan Contribution (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | $ 1,300 | |
Defined Contribution Plan, Company Retirement | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined Contribution Plans, Contributions by Employer | 851 | $ 811 |
Defined Contribution Plan, 401K | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined Contribution Plans, Contributions by Employer | 1,400 | 1,423 |
Defined Benefit Pension Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Employer contributions | 820 | 0 |
Supplemental Non-qualified Defined Benefit Retirement Plans | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Employer contributions | 221 | 211 |
Defined Benefit Plans, Employer Contributions | 221 | 211 |
Non-pension Defined Benefit Postretirement Healthcare Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined Benefit Plans, Employer Contributions | $ 279 | $ 267 |
Employee Benefit Plans_ Fair Va
Employee Benefit Plans: Fair Value Measurements (Details) - Defined Benefit Pension Plan - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total investments measured at fair value | $ 53,888 | $ 54,723 | $ 59,098 |
Common Collective Trust, Cash And Cash Equivalents | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total investments measured at fair value | 980 | 498 | |
Common Collective Trust - Equity | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total investments measured at fair value | 14,927 | 14,198 | |
Common Collective Trust - Fixed Income | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total investments measured at fair value | 31,003 | 32,615 | |
Common Collective Trust - Real Estate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total investments measured at fair value | 2,647 | 2,531 | |
Hedge Funds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total investments measured at fair value | 4,331 | 4,881 | |
Net Asset Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total investments measured at fair value | 6,631 | 6,994 | |
Net Asset Value | Common Collective Trust, Cash And Cash Equivalents | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total investments measured at fair value | 0 | 0 | |
Net Asset Value | Common Collective Trust - Equity | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total investments measured at fair value | 0 | 0 | |
Net Asset Value | Common Collective Trust - Fixed Income | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total investments measured at fair value | 0 | 0 | |
Net Asset Value | Common Collective Trust - Real Estate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total investments measured at fair value | 2,300 | 2,113 | |
Net Asset Value | Hedge Funds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total investments measured at fair value | 4,331 | 4,881 | |
Fair Value, Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total investments measured at fair value | 0 | 0 | |
Fair Value, Level 1 | Common Collective Trust, Cash And Cash Equivalents | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total investments measured at fair value | 0 | 0 | |
Fair Value, Level 1 | Common Collective Trust - Equity | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total investments measured at fair value | 0 | 0 | |
Fair Value, Level 1 | Common Collective Trust - Fixed Income | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total investments measured at fair value | 0 | 0 | |
Fair Value, Level 1 | Common Collective Trust - Real Estate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total investments measured at fair value | 0 | 0 | |
Fair Value, Level 1 | Hedge Funds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total investments measured at fair value | 0 | 0 | |
Fair Value, Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total investments measured at fair value | 47,257 | 47,729 | |
Fair Value, Level 2 | Common Collective Trust, Cash And Cash Equivalents | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total investments measured at fair value | 980 | 498 | |
Fair Value, Level 2 | Common Collective Trust - Equity | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total investments measured at fair value | 14,927 | 14,198 | |
Fair Value, Level 2 | Common Collective Trust - Fixed Income | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total investments measured at fair value | 31,003 | 32,615 | |
Fair Value, Level 2 | Common Collective Trust - Real Estate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total investments measured at fair value | 347 | 418 | |
Fair Value, Level 2 | Hedge Funds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total investments measured at fair value | 0 | 0 | |
Fair Value, Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total investments measured at fair value | 0 | 0 | |
Fair Value, Level 3 | Common Collective Trust, Cash And Cash Equivalents | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total investments measured at fair value | 0 | 0 | |
Fair Value, Level 3 | Common Collective Trust - Equity | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total investments measured at fair value | 0 | 0 | |
Fair Value, Level 3 | Common Collective Trust - Fixed Income | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total investments measured at fair value | 0 | 0 | |
Fair Value, Level 3 | Common Collective Trust - Real Estate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total investments measured at fair value | 0 | 0 | |
Fair Value, Level 3 | Hedge Funds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total investments measured at fair value | $ 0 | $ 0 |
Employee Benefit Plans_ Changes
Employee Benefit Plans: Changes in Benefit Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Pension Plan | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation at beginning of year | $ 65,959 | $ 71,178 | |
Service cost | 606 | 797 | $ 704 |
Interest cost | 2,499 | 2,956 | 2,991 |
Actuarial loss (gain) | 455 | (5,650) | |
Defined Benefit Plan, Benefits Paid | (3,215) | (3,284) | |
Asset transfer (to) from affiliate | (1,331) | (38) | |
Medicare Part D adjustment | 0 | 0 | |
Plan participants’ contributions | 0 | 0 | |
Projected benefit obligation at end of year | 64,973 | 65,959 | 71,178 |
Supplemental Non-qualified Defined Benefit Retirement Plans | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation at beginning of year | 3,426 | 3,599 | |
Service cost | 0 | 0 | 0 |
Interest cost | 122 | 142 | 146 |
Actuarial loss (gain) | 78 | (104) | |
Defined Benefit Plan, Benefits Paid | (222) | (211) | |
Asset transfer (to) from affiliate | 0 | 0 | |
Medicare Part D adjustment | 0 | 0 | |
Plan participants’ contributions | 0 | 0 | |
Projected benefit obligation at end of year | 3,404 | 3,426 | 3,599 |
Non-pension Defined Benefit Postretirement Healthcare Plan | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation at beginning of year | 6,208 | 6,038 | |
Service cost | 204 | 233 | 222 |
Interest cost | 187 | 214 | 241 |
Actuarial loss (gain) | (446) | 27 | |
Defined Benefit Plan, Benefits Paid | (420) | (387) | |
Asset transfer (to) from affiliate | (31) | (7) | |
Medicare Part D adjustment | 0 | (30) | |
Plan participants’ contributions | 141 | 120 | |
Projected benefit obligation at end of year | $ 5,843 | $ 6,208 | $ 6,038 |
Employee Benefit Plans_ Chang59
Employee Benefit Plans: Changes in Plan Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Pension Plan | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning market value of plan assets | $ 54,723 | $ 59,098 |
Investment income (loss) | 2,485 | (1,057) |
Benefits paid | (3,215) | (3,284) |
Participant contributions | 0 | 0 |
Employer contributions | 820 | 0 |
Asset transfer to affiliate | (925) | (34) |
Ending fair value of plan assets | 53,888 | 54,723 |
Supplemental Non-qualified Defined Benefit Retirement Plans | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning market value of plan assets | 0 | 0 |
Investment income (loss) | 0 | 0 |
Benefits paid | (222) | (211) |
Defined Benefit Plan Benefits Paid From Plan and Company Assets | (221) | (211) |
Participant contributions | 0 | 0 |
Employer contributions | 221 | 211 |
Asset transfer to affiliate | 0 | 0 |
Ending fair value of plan assets | 0 | 0 |
Postretirement Health Coverage | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning market value of plan assets | 0 | 0 |
Investment income (loss) | 0 | 0 |
Benefits paid | (420) | (387) |
Participant contributions | 279 | 120 |
Employer contributions | 141 | 267 |
Asset transfer to affiliate | 0 | 0 |
Ending fair value of plan assets | $ 0 | $ 0 |
Employee Benefit Plans_ Amounts
Employee Benefit Plans: Amounts Recognized in the Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Non-current liability | $ (19,544) | $ (20,033) |
Defined Benefit Pension Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Regulatory asset (liability) | 18,974 | 19,816 |
Current liability | 0 | 0 |
Non-current liability | (11,085) | (11,236) |
Supplemental Non-qualified Defined Benefit Retirement Plans | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Regulatory asset (liability) | 0 | 0 |
Current liability | (247) | (216) |
Non-current liability | (3,157) | (3,210) |
Non-pension Defined Benefit Postretirement Healthcare Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Regulatory asset (liability) | (2,087) | (1,946) |
Current liability | (541) | (619) |
Non-current liability | $ (5,302) | $ (5,587) |
Employee Benefit Plans_ Accumul
Employee Benefit Plans: Accumulated Benefit Obligation (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Benefit Pension Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Accumulated benefit obligation | $ 61,585 | $ 62,240 |
Supplemental Non-qualified Defined Benefit Retirement Plans | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Accumulated benefit obligation | 3,404 | 3,426 |
Non-pension Defined Benefit Postretirement Healthcare Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Accumulated benefit obligation | $ 5,843 | $ 6,208 |
Employee Benefit Plans_ Compone
Employee Benefit Plans: Components of Net Periodic Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 606 | $ 797 | $ 704 |
Interest cost | 2,499 | 2,956 | 2,991 |
Expected return on assets | (3,632) | (3,935) | (3,702) |
Amortization of prior service cost (credits) | 43 | 43 | 43 |
Recognized net actuarial loss (gain) | 1,995 | 2,196 | 940 |
Net periodic expense | 1,511 | 2,057 | 976 |
Supplemental Non-qualified Defined Benefit Retirement Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0 | 0 | 0 |
Interest cost | 122 | 142 | 146 |
Expected return on assets | 0 | 0 | 0 |
Amortization of prior service cost (credits) | 0 | 0 | 0 |
Recognized net actuarial loss (gain) | 82 | 93 | 45 |
Net periodic expense | 204 | 235 | 191 |
Non-pension Defined Benefit Postretirement Healthcare Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 204 | 233 | 222 |
Interest cost | 187 | 214 | 241 |
Expected return on assets | 0 | 0 | 0 |
Amortization of prior service cost (credits) | (337) | (336) | (335) |
Recognized net actuarial loss (gain) | 0 | 0 | 0 |
Net periodic expense | $ 54 | $ 111 | $ 128 |
Employee Benefit Plans_ Accum63
Employee Benefit Plans: Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Pension Plan | ||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax [Abstract] | ||
Net loss | $ 0 | $ 0 |
Prior service cost | 0 | 0 |
Total accumulated other comprehensive income (loss) | 0 | 0 |
Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year [Abstract] | ||
Net loss | 799 | |
Prior service cost | 28 | |
Total net periodic benefit cost expected to be recognized during calendar year 2017 | 827 | |
Supplemental Non-qualified Defined Benefit Retirement Plans | ||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax [Abstract] | ||
Net loss | 669 | 672 |
Prior service cost | 0 | 0 |
Total accumulated other comprehensive income (loss) | 669 | 672 |
Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year [Abstract] | ||
Net loss | 51 | |
Prior service cost | 0 | |
Total net periodic benefit cost expected to be recognized during calendar year 2017 | 51 | |
Non-pension Defined Benefit Postretirement Healthcare Plan | ||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax [Abstract] | ||
Net loss | 0 | 0 |
Prior service cost | 0 | 0 |
Total accumulated other comprehensive income (loss) | 0 | $ 0 |
Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year [Abstract] | ||
Net loss | 0 | |
Prior service cost | (218) | |
Total net periodic benefit cost expected to be recognized during calendar year 2017 | $ (218) |
Employee Benefit Plans_ Defined
Employee Benefit Plans: Defined Benefit Plans Assumptions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Expected long-term rate of return on assets | 6.75% | 6.75% | |
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rates [Abstract] | |||
1% Increase on Service and Interest Costs | $ 5 | ||
1% Increase on Accumulated Periodic Postretirement Benefit Obligation | 125 | ||
1% Decrease on Service and Interest Cost | (5) | ||
1% Decrease on Accumulated Periodic Postretirement Benefit Obligation | $ (121) | ||
Defined Benefit Pension Plan | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 4.27% | 4.63% | 4.25% |
Rate of increase in compensation levels | 3.47% | 3.57% | 3.86% |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 4.63% | 4.25% | 5.10% |
Expected long-term rate of return on assets | 6.75% | 6.75% | 6.75% |
Rate of increase in compensation levels | 3.57% | 3.86% | 3.86% |
Defined Benefit Plan Assumptions Used In Calculating Net Periodic Benefit Cost Expected Rate of Return On Assets For Next Fiscal Year | 6.75% | ||
Defined Benefit Plan, Assumed Health Care Cost Trend Rates [Abstract] | |||
Trend for next year | 4.27% | ||
Supplemental Non-qualified Defined Benefit Retirement Plans | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 4.12% | 4.29% | 3.98% |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 4.29% | 3.98% | 4.68% |
Non-pension Defined Benefit Postretirement Healthcare Plan | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 3.84% | 4.03% | 3.70% |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 4.03% | 3.70% | 4.45% |
Healthcare trend rate pre-65 | |||
Defined Benefit Plan, Assumed Health Care Cost Trend Rates [Abstract] | |||
Trend for next year | 6.10% | 6.35% | |
Ultimate trend rate | 4.50% | 4.50% | |
Year Ultimate Trend Reached | 2,024 | 2,024 | |
Healthcare trend rate post-65 | |||
Defined Benefit Plan, Assumed Health Care Cost Trend Rates [Abstract] | |||
Trend for next year | 5.10% | 5.20% | |
Ultimate trend rate | 4.50% | 4.50% | |
Year Ultimate Trend Reached | 2,023 | 2,023 |
Employee Benefit Plans_ Project
Employee Benefit Plans: Projected Benefit Plan Payments (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Defined Benefit Pension Plan | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2,017 | $ 3,946 |
2,018 | 3,543 |
2,019 | 3,669 |
2,020 | 3,766 |
2,021 | 3,883 |
2022-2026 | 20,663 |
Supplemental Non-qualified Defined Benefit Retirement Plans | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2,017 | 247 |
2,018 | 243 |
2,019 | 241 |
2,020 | 237 |
2,021 | 330 |
2022-2026 | 1,519 |
Non-pension Defined Benefit Postretirement Healthcare Plan | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2,017 | 541 |
2,018 | 562 |
2,019 | 577 |
2,020 | 585 |
2,021 | 570 |
2022-2026 | $ 2,456 |
Employee Benefit Plans_ Defin66
Employee Benefit Plans: Defined Contribution Plan (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Maximum Annual Contribution Per Employee, Percent | 50.00% |
Employers Matching Contribution, Annual Vesting Percentage | 20.00% |
Employee Vesting Period | 5 years |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)MW | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Related Party Transaction [Line Items] | |||
Receivables - affiliates | $ 9,526 | $ 6,734 | |
Accounts payable - affiliates | $ 31,799 | 30,582 | |
Utility Money Pool Interest Rate | 2.21% | ||
Notes Receivable (Payable), net - Utility Money Pool | $ 28,409 | 76,813 | |
Purchase of Excess Energy, Cheyenne Light | |||
Related Party Transaction [Line Items] | |||
Costs and Expenses | 252 | 898 | $ 3,033 |
Utility Money Pool | |||
Related Party Transaction [Line Items] | |||
Net interest income (expense) | 1,047 | 1,153 | 304 |
Parent | |||
Related Party Transaction [Line Items] | |||
Non-cash dividend to Parent company | $ 52,500 | 28,501 | 0 |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 1.00% | ||
Interest Expense, Related Party | $ 1,900 | 2,100 | 500 |
Subsidiary of Common Parent | |||
Related Party Transaction [Line Items] | |||
Transfer from Investments | $ 52,500 | 28,501 | 0 |
Subsidiary of Common Parent | Purchase Of Natural Gas, Wyoming Gas | |||
Related Party Transaction [Line Items] | |||
Long-term Purchase Commitment, Period | 40 years | ||
Subsidiary of Common Parent | Coal, Purchased | |||
Related Party Transaction [Line Items] | |||
Costs and Expenses | $ 16,227 | 16,401 | 16,861 |
Subsidiary of Common Parent | Happy Jack Wind Purchase Power Agreeement | |||
Related Party Transaction [Line Items] | |||
Number of Megawatts Capacity Purchased | MW | 15 | ||
Costs and Expenses | $ 1,918 | 1,578 | 1,959 |
Subsidiary of Common Parent | Silver Sage Wind Power Purchase Agreement | |||
Related Party Transaction [Line Items] | |||
Number of Megawatts Capacity Purchased | MW | 20 | ||
Costs and Expenses | $ 3,300 | 2,739 | 3,200 |
Subsidiary of Common Parent | Allocated Costs From Related Parties | |||
Related Party Transaction [Line Items] | |||
Costs and Expenses | 25,748 | 26,655 | 32,332 |
Subsidiary of Common Parent | Energy sold to Wyoming Electric | |||
Related Party Transaction [Line Items] | |||
Revenue | 2,440 | 1,857 | 1,894 |
Subsidiary of Common Parent | Lease Agreements | |||
Related Party Transaction [Line Items] | |||
Revenue | $ 5,046 | $ 4,772 | $ 4,102 |
Supplemental Cash Flow Inform68
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract] | |||
Property, plant and equipment acquired with accrued liabilities | $ 5,521 | $ 3,870 | $ 4,234 |
Interest and Income Taxes (Paid) Refunded, Cash Flow Information [Abstract] | |||
Interest (net of amounts capitalized) | (21,320) | (21,913) | (19,573) |
Income taxes | 0 | 0 | 0 |
Subsidiary of Common Parent | |||
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract] | |||
Non-cash decrease to money pool note receivable, net | (52,500) | (28,501) | 0 |
Parent | |||
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract] | |||
Non-cash dividend to Parent company | $ 52,500 | $ 28,501 | $ 0 |
Commitment and Contingencies (D
Commitment and Contingencies (Details) $ in Thousands | Jan. 01, 2017MW | Dec. 31, 2016USD ($)MW | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Contractual Obligation, Fiscal Year Maturity [Abstract] | ||||
2,017 | $ 13,091 | |||
2,018 | 6,388 | |||
2,019 | 6,388 | |||
2,020 | 6,388 | |||
2,021 | 5,755 | |||
Thereafter | $ 11,510 | |||
M D U, Montana Dakota Utilities | Wygen I I I Generating Facility | ||||
Sales Capacity Commitments [Abstract] | ||||
Number of MW Sold Under Long-Term Contract | MW | 25 | |||
City Of Gillette | Wygen I I I Generating Facility | ||||
Sales Capacity Commitments [Abstract] | ||||
Number of MW Sold Under Long-Term Contract | MW | 23 | |||
Purchase Power Contract, MEAN, 10 M W | Wygen I I I Generating Facility | ||||
Sales Capacity Commitments [Abstract] | ||||
Number of MW Sold Under Long-Term Contract | MW | 10 | |||
Purchase Power Contract, MEAN, 10 M W | Neil Simpson I I | ||||
Sales Capacity Commitments [Abstract] | ||||
Number of MW Sold Under Long-Term Contract | MW | 10 | |||
Maximum | M D U, Montana Dakota Utilities | ||||
Sales Capacity Commitments [Abstract] | ||||
Number of MW Sold Under Long-Term Contract | MW | 50 | |||
Thunder Creek - Gas Transport Capacity | ||||
Long-term Purchase Commitment [Line Items] | ||||
Gas Gathering, Transportation, Marketing and Processing Costs | $ 633 | $ 633 | $ 633 | |
PacifiCorp Purchase Power Agreement | ||||
Long-term Purchase Commitment [Line Items] | ||||
Number of Megawatts Capacity Purchased | MW | 50 | |||
Cost of Purchased Power | $ 12,221 | 13,990 | 13,943 | |
PacifiCorp Transmission | ||||
Long-term Purchase Commitment [Line Items] | ||||
Number of Megawatts Capacity Purchased | MW | 50 | |||
Cost of Purchased Power | $ 1,428 | $ 1,213 | $ 1,227 | |
Subsequent Event | Maximum | Cargill Power Purchase Agreement | ||||
Sales Capacity Commitments [Abstract] | ||||
Number of MW Sold Under Long-Term Contract | MW | 50 |
Quarterly Financial information
Quarterly Financial information Data (Unaudited) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Selected Quarterly Financial Information [Abstract] | |||||||||||
Operating revenues | $ 70,243 | $ 66,728 | $ 62,019 | $ 68,642 | $ 67,432 | $ 72,111 | $ 68,038 | $ 70,283 | $ 267,632 | $ 277,864 | $ 268,488 |
Operating income | 23,454 | 22,410 | 18,936 | 20,780 | 21,825 | 23,456 | 21,143 | 21,490 | 85,580 | 87,914 | 69,114 |
Net income | $ 12,136 | $ 12,010 | $ 9,806 | $ 11,186 | $ 11,937 | $ 12,287 | $ 10,547 | $ 10,403 | $ 45,138 | $ 45,174 | $ 33,562 |
Schedule II - Valuation and Q71
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Allowance for doubtful accounts, balance at beginning of year | $ 207 | $ 261 | $ 220 |
Additions charged to costs and expenses | 644 | 602 | 699 |
Deductions charged to costs and expenses | (694) | (656) | (658) |
Allowance for doubtful accounts, balance at end of year | $ 157 | $ 207 | $ 261 |