Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Aug. 04, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,016 | |
Entity Registrant Name | IPALCO ENTERPRISES, INC. | |
Entity Central Index Key | 728,391 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 108,907,318 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Statements Of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Statement [Abstract] | ||||
UTILITY OPERATING REVENUES | $ 323,289 | $ 292,477 | $ 651,034 | $ 624,678 |
Operation: | ||||
Fuel | 53,167 | 77,084 | 119,664 | 162,516 |
Other operating expenses | 62,209 | 54,832 | 119,443 | 109,808 |
Power purchased | 40,421 | 31,409 | 92,869 | 73,985 |
Maintenance | 36,480 | 40,755 | 67,001 | 72,037 |
Depreciation and amortization | 57,916 | 42,931 | 111,151 | 89,376 |
Taxes other than income taxes | 11,404 | 10,559 | 22,538 | 23,492 |
Income taxes - net | 17,429 | 8,781 | 33,833 | 26,982 |
Total utility operating expenses | 279,026 | 266,351 | 566,499 | 558,196 |
UTILITY OPERATING INCOME | 44,263 | 26,126 | 84,535 | 66,482 |
OTHER INCOME AND (DEDUCTIONS): | ||||
Allowance for equity funds used during construction | 6,596 | 3,079 | 13,377 | 6,297 |
Gains (Losses) on Extinguishment of Debt | 0 | (19,323) | 0 | (19,323) |
Miscellaneous income and (deductions) - net | (58) | (742) | (1,134) | (1,368) |
Income tax benefit applicable to nonoperating income | 2,800 | 12,557 | 6,263 | 18,581 |
Total other income and (deductions) - net | 9,338 | (4,429) | 18,506 | 4,187 |
INTEREST AND OTHER CHARGES: | ||||
Interest on long-term debt | 27,452 | 27,695 | 53,553 | 55,341 |
Other interest | 621 | 499 | 1,363 | 948 |
Allowance for borrowed funds used during construction | (5,624) | (2,567) | (11,458) | (5,233) |
Amortization of redemption premiums and expense on debt | 1,080 | 1,335 | 2,106 | 2,669 |
Total interest and other charges - net | 23,529 | 26,962 | 45,564 | 53,725 |
NET INCOME (LOSS) | 30,072 | (5,265) | 57,477 | 16,944 |
LESS: PREFERRED DIVIDENDS OF SUBSIDIARY | 804 | 804 | 1,607 | 1,607 |
NET INCOME (LOSS) APPLICABLE TO COMMON STOCK | $ 29,268 | $ (6,069) | $ 55,870 | $ 15,337 |
Unaudited Condensed Consolidat3
Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
UTILITY PLANT: | ||
Utility plant in service | $ 4,983,921 | $ 4,992,594 |
Less accumulated depreciation | 2,049,303 | 2,320,955 |
Utility plant in service - net | 2,934,618 | 2,671,639 |
Construction work in progress | 821,456 | 766,406 |
Spare parts inventory | 15,214 | 12,336 |
Property held for future use | 1,002 | 1,002 |
Utility plant - net | 3,772,290 | 3,451,383 |
OTHER ASSETS: | ||
Nonutility property - at cost, less accumulated depreciation | 514 | 517 |
Other long-term assets | 5,619 | 5,664 |
Other assets - net | 6,133 | 6,181 |
CURRENT ASSETS: | ||
Cash and cash equivalents | 44,470 | 21,521 |
Accounts receivable and unbilled revenue (less allowance for doubtful accounts of $3,262 and $2,498, respectively) | 145,449 | 124,167 |
Fuel inventories - at average cost | 49,887 | 66,834 |
Materials and supplies - at average cost | 57,437 | 57,997 |
Regulatory assets | 22,585 | 8,002 |
Prepayments and other current assets | 42,842 | 26,063 |
Total current assets | 362,670 | 304,584 |
DEFERRED DEBITS: | ||
Regulatory assets | 445,641 | 448,200 |
Miscellaneous | 4,781 | 6,821 |
Total deferred debits | 450,422 | 455,021 |
TOTAL | 4,591,515 | 4,217,169 |
Common shareholders’ equity: | ||
Paid in capital | 596,714 | 383,448 |
Accumulated deficit | (26,923) | (30,515) |
Total common shareholders’ equity | 569,791 | 352,933 |
Cumulative preferred stock of subsidiary | 59,784 | 59,784 |
Long-term debt (Note 5) | 2,498,200 | 2,153,276 |
Total capitalization | 3,127,775 | 2,565,993 |
CURRENT LIABILITIES: | ||
Short-term debt (Note 5) | 0 | 166,655 |
Accounts payable | 117,374 | 155,428 |
Accrued expenses | 19,563 | 19,482 |
Accrued real estate and personal property taxes | 17,585 | 17,712 |
Regulatory liabilities | 21,294 | 28,169 |
Accrued interest | 33,356 | 31,690 |
Customer deposits | 33,168 | 30,719 |
Other current liabilities | 13,807 | 12,623 |
Total current liabilities | 256,147 | 462,478 |
DEFERRED CREDITS AND OTHER LONG-TERM LIABILITIES: | ||
Regulatory liabilities | 653,998 | 639,516 |
Deferred income taxes - net | 423,102 | 397,394 |
Non-current income tax liability | 7,254 | 7,147 |
Unamortized investment tax credit | 3,295 | 3,910 |
Accrued pension and other postretirement benefits | 59,715 | 80,734 |
Asset retirement obligations | 58,513 | 58,986 |
Miscellaneous | 1,716 | 1,011 |
Total deferred credits and other long-term liabilities | 1,207,593 | 1,188,698 |
COMMITMENTS AND CONTINGENCIES | ||
TOTAL | $ 4,591,515 | $ 4,217,169 |
Unaudited Condensed Consolidat4
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Accounts receivable and unbilled revenue, allowance for doubtful accounts | $ 3,262 | $ 2,498 |
Unaudited Condensed Consolidat5
Unaudited Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
CASH FLOWS FROM OPERATIONS: | ||
Net income | $ 57,477 | $ 16,944 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 109,225 | 98,667 |
Amortization (deferral) of regulatory assets | 3,957 | (7,147) |
Amortization of debt premium | 78 | 528 |
Deferred income taxes and investment tax credit adjustments - net | 18,575 | 8,401 |
Gain (Loss) on Early Extinguishment of Debt | 0 | 19,323 |
Allowance for equity funds used during construction | (13,166) | (6,160) |
Change in certain assets and liabilities: | ||
Accounts receivable | (21,283) | 6,798 |
Fuel, materials and supplies | 17,508 | (20,817) |
Increase (Decrease) in Income Taxes Payable, Net of Income Taxes Receivable | (6,005) | 0 |
Income taxes receivable | (5,885) | (8,174) |
Accounts payable and accrued expenses | 2,925 | 6,660 |
Accrued real estate and personal property taxes | (127) | (6) |
Accrued interest | 1,665 | (6,154) |
Pension and other postretirement benefit expenses | (21,019) | (28,159) |
Short-term and long-term regulatory assets and liabilities | (16,407) | 10,340 |
Prepaids and other current assets | (4,889) | (7,889) |
Other - net | 6,995 | 192 |
Net cash provided by operating activities | 129,624 | 83,347 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures - utility | (425,587) | (286,261) |
Project development costs | (493) | (6,503) |
Cost of removal, net of salvage | (8,417) | (6,205) |
Other | (1,463) | 29 |
Net cash used in investing activities | (435,960) | (298,940) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Short-term debt borrowings | 223,000 | 132,000 |
Short-term debt repayments | (389,850) | (77,000) |
Proceeds from Debt, Net of Issuance Costs | 347,662 | 404,712 |
Repayments of Long-term Debt | 0 | 384,324 |
Retirement of long-term debt, including make-whole provision | (52,278) | (37,564) |
Issuance of common stock | 134,276 | 214,366 |
Proceeds from Contributed Capital | 78,738 | |
Proceeds from Contributions from Parent | 0 | |
Preferred dividends of subsidiary | (1,607) | (1,607) |
Deferred financing costs paid | (3,809) | (4,111) |
Retention payments on capital expenditures | (6,693) | (718) |
Other | (154) | (368) |
Net cash provided by financing activities | 329,285 | 245,386 |
Net change in cash and cash equivalents | 22,949 | 29,793 |
Cash and cash equivalents at beginning of period | 21,521 | 26,933 |
Cash and cash equivalents at end of period | 44,470 | 56,726 |
Cash paid during the period for: | ||
Interest (net of amount capitalized) | 41,773 | 57,191 |
Income taxes | 15,000 | |
Non-cash investing activities: | ||
Accruals for capital expenditures | $ 42,382 | $ 57,829 |
Overview and Summary Of Signifi
Overview and Summary Of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Overview and Summary Of Significant Accounting Policies | OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES IPALCO is a holding company incorporated under the laws of the state of Indiana. IPALCO, acquired by AES in March 2001, is owned by AES U.S. Investments ( 82.35% ) and CDPQ ( 17.65% ). AES U.S. Investments is owned by AES U.S. Holdings, LLC ( 85% ) and CDPQ ( 15% ). IPALCO owns all of the outstanding common stock of IPL. Substantially all of IPALCO’s business consists of generating, transmitting, distributing and selling of electric energy conducted through its principal subsidiary, IPL. IPL was incorporated under the laws of the state of Indiana in 1926. IPL has more than 480,000 retail customers in the city of Indianapolis and neighboring cities, towns and communities, and adjacent rural areas all within the state of Indiana, with the most distant point being approximately forty miles from Indianapolis. IPL has an exclusive right to provide electric service to those customers. IPL owns and operates four generating stations all within the state of Indiana. Our largest generating station, Petersburg, is coal-fired. The second largest station, Harding Street, has converted its coal-fired units to natural gas and uses natural gas and fuel oil to power combustion turbines. The third station, Eagle Valley, retired its coal-fired units in April 2016 and the CCGT at Eagle Valley is expected to be placed into service in April 2017. The fourth station, Georgetown, is a small peaking station that uses natural gas to power combustion turbines. As of June 30, 2016, IPL’s net electric generation capacity for winter is 2,993 MW and net summer capacity is 2,878 MW. Principles of Consolidation The accompanying Financial Statements include the accounts of IPALCO, IPL and Mid-America Capital Resources, Inc., a non-regulated wholly-owned subsidiary of IPALCO. All significant intercompany amounts have been eliminated. The accompanying Financial Statements are unaudited; however, they have been prepared in accordance with GAAP for interim financial information and in conjunction with the rules and regulations of the SEC. Accordingly, they do not include all of the disclosures required by GAAP for annual fiscal reporting periods. In the opinion of management, all adjustments of a normal recurring nature necessary for fair presentation have been included. The electric utility business is affected by seasonal weather patterns throughout the year and, therefore, the operating revenues and associated operating expenses are not generated evenly by month during the year. These unaudited Financial Statements have been prepared in accordance with the accounting policies described in the audited financial statements filed as Exhibit 99.1 to IPALCO’s current report on Form 8-K filed with the SEC on May 12, 2016, and should be read in conjunction therewith. Use of Management Estimates The preparation of financial statements in conformity with GAAP requires that management make certain 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. The reported amounts of revenues and expenses during the reporting period may also be affected by the estimates and assumptions that management is required to make. Actual results may differ from those estimates. New Accounting Pronouncements The following table provides a brief description of recent accounting pronouncements that had and/or could have a material impact on the Company’s consolidated financial statements: New Accounting Standards Adopted ASU Number and Name Description Date of Adoption Effect on the financial statements upon adoption 2015-15, Interest - Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements Given the absence of authoritative guidance within ASU 2015-03, this standard clarifies that the SEC Staff would not object to an entity presenting debt issuance costs related to line-of-credit arrangements as an asset that is subsequently amortized ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. Transition method: retrospective. January 1, 2016 Deferred financing costs related to lines-of-credit of approximately $0.3 million recorded within Deferred Debits were not reclassified as of December 31, 2015. 2015-03, Interest - Imputation of Interest (Subtopic 835-30) The standard simplifies the presentation of debt issuance costs by requiring that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the standard. Transition method: retrospective. January 1, 2016 Deferred financing costs of approximately $20.8 million previously classified within Deferred Debits were reclassified to reduce the related debt liabilities as of December 31, 2015. 2015-02, Consolidation — Amendments to the Consolidation Analysis (Topic 810) The standard makes targeted amendments to the current consolidation guidance and ends the deferral granted to investment companies from applying the VIE guidance. The standard amends the evaluation of whether (1) fees paid to a decision-maker or service providers represent a variable interest, (2) a limited partnership or similar entity has the characteristics of a VIE and (3) a reporting entity is the primary beneficiary of a VIE. Transition method: retrospective. January 1, 2016 There were no changes to the consolidation conclusions. New Accounting Standards Issued But Not Yet Effective ASU Number and Name Description Date of Adoption Effect on the financial statements upon adoption 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments This standard updates the impairment model for financial assets measured at amortized cost to an expected loss model rather than an incurred loss model. It also allows for the presentation of credit losses on available-for-sale debt securities as an allowance rather than a write down. Transition method: various. January 1, 2020 Early adoption is permitted only as of January 1, 2019. The Company is currently evaluating the impact of adopting the standard on its consolidated financial statements. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting The standard simplifies the following aspects of accounting for share-based payment awards: accounting for income taxes, classification of excess tax benefits on the statement of cash flows, forfeitures, statutory tax withholding requirements, classification of awards as either equity or liabilities and classification of employee taxes paid on statement of cash flows when an employer withholds shares for tax-withholding purposes. Transition method: Various. January 1, 2017. Early adoption is permitted. The Company is currently evaluating the impact of adopting the standard on its consolidated financial statements. 2016-06, Derivatives and Hedging (Topic 815) - Contingent Put and Call Options in Debt Instruments This standard clarifies the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. When a call (put) option is contingently exercisable, an entity will no longer assess whether the event that triggers the ability to exercise a call (put) option is related to interest rates or credit risks. Transition method: a modified retrospective basis to existing debt instruments as of the effective date. January 1, 2017. Early adoption is permitted. The Company is currently evaluating the impact of adopting the standard, but does not anticipate a material impact on its consolidated financial statements. 2016-05, Derivatives and Hedging (Topic 815) - Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships The standard clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument under Topic 815 does not require de-designation of that hedging relationship provided that all other hedge accounting criteria (including those in paragraphs 815-20-35-14 through 35-18) continue to be met. Transition method: prospective or a modified retrospective basis. January 1, 2017. Early adoption is permitted. The Company is currently evaluating the impact of adopting the standard, but does not anticipate a material impact on its consolidated financial statements. 2016-02, Leases (Topic 842) The standard creates Topic 842, Leases, which supersedes Topic 840, Leases, and introduces a lessee model that brings substantially all leases onto the balance sheet while retaining most of the principles of the existing lessor model in U.S. GAAP and aligning many of those principles with ASC 606, Revenue from Contracts with Customers. Transition method: modified retrospective approach with certain practical expedients. January 1, 2019. Early adoption is permitted. The Company is currently evaluating the impact of adopting the standard on its consolidated financial statements. 2016-01, Financial Instruments - Overall (Topic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities The standard significantly revises an entity’s accounting related to (1) the classification and measurement of investments in equity securities and (2) the presentation of certain fair value changes for financial liabilities measured at fair value. Also, it amends certain disclosure requirements associated with the fair value of financial instruments. Transition: cumulative effect in Retained Earnings as of adoption or prospectively for equity investments without readily determinable fair value. January 1, 2018. Limited early adoption permitted. The Company is currently evaluating the impact of adopting the standard, but does not anticipate a material impact on its consolidated financial statements. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory The standard replaces the current lower of cost or market test with a lower of cost or net realizable value test. Transition method: prospectively. January 1, 2017. Early adoption is permitted. The Company is currently evaluating the impact of adopting the standard on its consolidated financial statements. 2014-09, 2016-08, 2016-10, 2016-12 Revenue from Contracts with Customers (Topic 606), The Revenue from Contracts with Customers standard provides a single and comprehensive revenue recognition model for all contracts with customers to improve comparability. The standard contains principles to determine the measurement and timing of revenue recognition. The standard requires an entity to recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. The amendments to the standard provide further clarification on contract revenue recognition specifically related to the implementation of the principal versus agent evaluation, the identification of performance obligations, clarification on accounting for licenses of intellectual property, and allows for the election to account for shipping and handling activities performed after control of a good has been transferred to the customer as a fulfillment cost. Transition method: a full retrospective or modified retrospective approach. January 1, 2018 (deferred by ASU No. 2015-14). Early application is permitted only as of January 1, 2017. The Company is currently evaluating the impact of adopting the standard on its consolidated financial statements. |
Regulatory Matters
Regulatory Matters | 6 Months Ended |
Jun. 30, 2016 | |
Regulated Operations [Abstract] | |
Regulatory Matters | REGULATORY MATTERS In March 2016, the IURC issued an order authorizing IPL to increase its basic rates and charges by $30.8 million annually. The order also authorized IPL to collect, over a ten year period, $117.7 million of previously deferred regulatory assets related to IPL’s participation in the regional transmission organization known as MISO. Such deferred costs will be amortized to expense over ten years. Accordingly, $11.8 million of IPL’s long-term MISO regulatory asset as of December 31, 2015 has been reclassified to current regulatory assets as of June 30, 2016 on the accompanying Unaudited Condensed Consolidated Balance Sheets. The rate order also authorized an increase in IPL’s depreciation rates of $24.3 million annually compared to the twelve months ended June 30, 2014, which is the period upon which the rate increase was calculated. IPL also received approval to implement three new rate riders for current recovery from customers of ongoing MISO costs, capacity costs and sharing at 50% of wholesale sales margins with customers. The order approved recovery of IPL’s pension expenses and a return on IPL’s discretionary pension fundings. While the IURC noted in the order that they found IPL’s Service Company cost allocations to be reasonable, IPL was directed to request the FERC to review its Service Company allocations. Such review is currently underway. The IURC also closed their investigation into IPL’s underground network. Some of the intervening parties in the IURC rate case filed petitions for reconsideration of the IURC’s March 2016 order with respect to certain issues. These petitions were subsequently denied by the IURC. In addition, certain intervening parties have filed notices of appeal of the order. The amounts of regulatory assets and regulatory liabilities are as follows: June 30, 2016 December 31, 2015 Recovery Period (In Thousands) Regulatory Assets Current: Undercollections of rate riders $ 8,632 $ — Approximately 1 year (1) Amounts being recovered through base rates 13,953 8,002 Approximately 1 year (1) Total current regulatory assets $ 22,585 $ 8,002 Long-term: Unrecognized pension and other postretirement benefit plan costs $ 217,698 $ 226,889 Various (2) Income taxes recoverable through rates 42,004 35,765 Various Deferred MISO costs 120,243 128,610 Through 2026 (3) Unamortized Petersburg Unit 4 carrying charges and certain other costs 10,720 11,248 Through 2026 (1) (4) Unamortized reacquisition premium on debt 22,616 23,268 Over remaining life of debt Environmental projects 29,392 16,876 Through 2034 (1)(4) Other miscellaneous 2,968 5,544 To be determined (1)(5) Total long-term regulatory assets $ 445,641 $ 448,200 Total regulatory assets $ 468,226 $ 456,202 Regulatory Liabilities Current: Deferred fuel over-collection $ 11,259 $ 19,746 Approximately 1 year (1) FTRs 10,035 4,150 Approximately 1 year (1) DSM program costs — 4,273 Approximately 1 year (1) Total current regulatory liabilities $ 21,294 $ 28,169 Long-term: ARO and accrued asset removal costs $ 651,725 $ 637,065 Not Applicable Unamortized investment tax credit 2,065 2,451 Through 2021 Other miscellaneous 208 — Total long-term regulatory liabilities $ 653,998 $ 639,516 Total regulatory liabilities $ 675,292 $ 667,685 (1) Recovered (credited) per specific rate orders (2) IPL receives a return on its discretionary funding (3) The majority of these costs are being recovered per specific rate order; for the remaining costs recovery is probable but timing not yet determined (4) Recovered with a current return (5) A portion of this amount will be recovered over the next two years |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE Fair Value Hierarchy ASC 820 defined and established a framework for measuring fair value and expands disclosures about fair value measurements for financial assets and liabilities that are adjusted to fair value on a recurring basis and/or financial assets and liabilities that are measured at fair value on a nonrecurring basis, which have been adjusted to fair value during the period. In accordance with ASC 820, we have categorized our financial assets and liabilities that are adjusted to fair value, based on the priority of the inputs to the valuation technique, following the three-level fair value hierarchy prescribed by ASC 820 as follows: Level 1 - unadjusted quoted prices for identical assets or liabilities in an active market; Level 2 - inputs from quoted prices in markets where trading occurs infrequently or quoted prices of instruments with similar attributes in active markets; and Level 3 - unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability. As of June 30, 2016 and December 31, 2015 , all of IPALCO’s financial assets or liabilities adjusted to fair value on a recurring basis (excluding pension assets – see Note 7, “ Benefit Plans ”) were considered Level 3, based on the above fair value hierarchy. These primarily consisted of FTRs, which are used to offset MISO congestion charges. Because the benefit associated with FTRs is a flow-through to IPL’s jurisdictional customers, IPL records a regulatory liability matching the value of the FTRs. In addition, IPALCO had one financial asset, a nonutility investment accounted for using the cost method of accounting, which is measured at fair value on a nonrecurring basis, again using Level 3 measurements. No adjustments were made to this asset during the periods covered by this report. All of these financial assets and liabilities were not material to the Financial Statements in the periods covered by this report, individually or in the aggregate. Whenever possible, quoted prices in active markets are used to determine the fair value of our financial instruments. Our financial instruments are not held for trading or other speculative purposes. The estimated fair value of financial instruments has been determined by using available market information and appropriate valuation methodologies. However, considerable judgment is required in interpreting market data to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts that we could realize in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. Non-Recurring Fair Value Measurements ASC 410 “Asset Retirement and Environmental Obligations” addresses financial accounting and reporting for legal obligations associated with the retirement of long-lived assets that result from the acquisition, construction, development and/or normal operation. A legal obligation for purposes of ASC 410 is an obligation that a party is required to settle as a result of an existing law, statute, ordinance, written or oral contract or the doctrine of promissory estoppel. IPL’s ARO liabilities relate primarily to environmental issues involving asbestos-containing materials, ash ponds, landfills and miscellaneous contaminants associated with its generating plants, transmission system and distribution system. We use the cost approach to determine the fair value of IPL’s ARO liabilities, which is estimated by discounting expected cash outflows to their present value at the initial recording of the liabilities. Cash outflows are based on the approximate future disposal costs as determined by market information, historical information or other management estimates. These inputs to the fair value of the ARO liabilities would be considered Level 3 inputs under the fair value hierarchy. As of June 30, 2016 and December 31, 2015 , ARO liabilities were $58.5 million and $59.0 million , respectively. Financial Instruments not Measured at Fair Value in the Consolidated Balance Sheets Debt The fair value of our outstanding fixed-rate debt has been determined on the basis of the quoted market prices of the specific securities issued and outstanding. In certain circumstances, the market for such securities was inactive and, therefore, the valuation was adjusted to consider changes in market spreads for similar securities. Accordingly, the purpose of this disclosure is not to approximate the value on the basis of how the debt might be refinanced. The following table shows the face value and the fair value of fixed-rate and variable-rate indebtedness (Level 2) for the periods ending: June 30, 2016 December 31, 2015 Face Value Fair Value Face Value Fair Value (In Millions) Fixed-rate $ 2,438.5 $ 2,716.8 $ 2,088.4 $ 2,225.3 Variable-rate 90.0 90.0 256.9 256.9 Total indebtedness $ 2,528.5 $ 2,806.8 $ 2,345.3 $ 2,482.2 The difference between the face value and the carrying value of this indebtedness represents the following: • unamortized deferred financing costs of $23.4 million and $20.8 million at June 30, 2016 and December 31, 2015, respectively; and • unamortized discounts of $6.9 million and $4.6 million at June 30, 2016 and December 31, 2015 , respectively. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Equity | EQUITY On February 11, 2015, IPALCO issued and sold 100 shares of IPALCO’s common stock to CDPQ under the Subscription Agreement. On April 1, 2015, IPALCO issued and sold 11,818,828 shares of IPALCO’s common stock to CDPQ for $214.4 million under the Subscription Agreement. On March 1, 2016, IPALCO issued and sold 7,403,213 shares of IPALCO’s common stock to CDPQ for $134.3 million under the Subscription Agreement. After completion of these transactions, CDPQ’s direct and indirect interest in IPALCO is 30% . On June 1, 2016, IPALCO received equity capital contributions of (i) $64.8 million from AES U.S. Investments and (ii) $13.9 million from CDPQ. IPALCO then made the same investments in IPL. The proceeds were primarily used for funding needs related to IPL’s environmental and replacement generation projects. The capital contributions on June 1, 2016 were made on a proportional share basis and, therefore, did not change CDPQ’s or AES’ ownership interests in IPALCO. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Indebtedness | DEBT Long-Term Debt The following table presents our long-term debt: June 30, December 31, Series Due 2016 2015 (In Thousands) IPL first mortgage bonds: 5.40% (1) August 2017 $ 24,650 $ 24,650 3.875% (2) August 2021 55,000 55,000 3.875% (2) August 2021 40,000 40,000 4.55% (2) December 2024 40,000 40,000 6.60% January 2034 100,000 100,000 6.05% October 2036 158,800 158,800 6.60% June 2037 165,000 165,000 4.875% November 2041 140,000 140,000 4.65% June 2043 170,000 170,000 4.50% June 2044 130,000 130,000 4.70% September 2045 260,000 260,000 4.05% May 2046 350,000 — Unamortized discount – net (6,537 ) (4,242 ) Deferred financing costs (3) (17,429 ) (13,703 ) Total IPL first mortgage bonds 1,609,484 1,265,505 IPL unsecured debt: Variable (4) December 2020 30,000 30,000 Variable (4) December 2020 60,000 60,000 Total IPL unsecured debt 90,000 90,000 Total Long-term Debt – IPL 1,699,484 1,355,505 Long-term Debt – IPALCO: 5.00% Senior Secured Notes May 2018 400,000 400,000 3.45% Senior Secured Notes July 2020 405,000 405,000 Unamortized discount – net (335 ) (371 ) Deferred financing costs (3) (5,949 ) (6,858 ) Total Long-term Debt – IPALCO 798,716 797,771 Total Consolidated IPALCO Long-term Debt $ 2,498,200 $ 2,153,276 (1) First mortgage bonds are issued to the city of Petersburg, Indiana, to secure the loan of proceeds from tax-exempt bonds issued by the city. (2) First mortgage bonds are issued to the Indiana Finance Authority, to secure the loan of proceeds from tax-exempt bonds issued by the Indiana Finance Authority. (3) The Company adopted ASU No. 2015-03 on January 1, 2016, which requires the use of the full retrospective approach with respect to the presentation of debt issuance costs, including deferred charges. (4) Unsecured notes are issued to the Indiana Finance Authority by IPL to facilitate the loan of proceeds from various tax-exempt notes issued by the Indiana Finance Authority. The notes have a final maturity date of December 2038, but are subject to a mandatory put in December 2020. Significant Transactions IPL First Mortgage Bonds In May 2016, IPL issued $350 million aggregate principal amount of first mortgage bonds, 4.05% Series, due May 2046, pursuant to Rule 144A and Regulation S under the Securities Act. Net proceeds from this offering were approximately $343.6 million , after deducting the initial purchasers’ discounts and fees and expenses for the offering payable by IPL. The net proceeds from this offering were used to finance a portion of IPL’s construction program and capital costs related to environmental and replacement generation projects, to repay outstanding borrowings under IPL’s 364-day delayed-draw term loan and other short-term debt, and for other general corporate purposes. IPL Unsecured Notes In May 2016, IPL repaid $91.85 million in outstanding borrowings under its 364 -day delayed-draw term loan with a portion of the proceeds from its $350 million aggregate principal amount of first mortgage bonds as described above in “ – IPL First Mortgage Bonds . ” IPALCO ’ s Senior Secured Notes In June 2015, IPALCO completed the sale of the 2020 IPALCO Notes pursuant to Rule 144A and Regulation S under the Securities Act. The 2020 IPALCO Notes were issued pursuant to an Indenture dated June 25, 2015, by and between IPALCO and U.S. Bank, National Association, as trustee. The 2020 IPALCO Notes were priced to the public at 99.929% of the principal amount. Net proceeds to IPALCO were approximately $399.5 million after deducting underwriting costs and estimated offering expenses. These costs are being amortized to the maturity date using the effective interest method. We used the net proceeds from this offering to fund the purchase of the 2016 IPALCO Notes validly tendered and to pay for a related consent solicitation, to redeem any 2016 IPALCO Notes that remained outstanding after the completion of the tender, and to pay certain related fees, expenses and make-whole premiums. Of the 2016 IPALCO Notes outstanding, $366.5 million were tendered in June 2015. The remainder, $33.5 million , was redeemed in July 2015. An early tender premium was paid related to the tender offer and a redemption premium was paid related to the redemption of the 2016 IPALCO Notes. A loss on early extinguishment of debt of $19.3 million for the 2016 IPALCO Notes tendered in June 2015 is included as a separate line item within “ Other Income and (Deductions) ” in the accompanying Unaudited Condensed Consolidated Statements of Operations. The 2020 IPALCO Notes are secured by IPALCO’s pledge of all of the outstanding common stock of IPL. The lien on the pledged shares is shared equally and ratably with IPALCO’s existing senior secured notes. IPALCO has entered into a Pledge Agreement Supplement with the Bank of New York Mellon Trust Company, N.A., as Collateral Agent, dated June 25, 2015, to the Pledge Agreement between IPALCO and The Bank of New York Mellon Trust Company, N.A., dated November 14, 2001, as supplemented by a Pledge Agreement Supplement dated April 15, 2008 and a Pledge Agreement Supplement dated May 18, 2011, each by IPALCO in favor of the Collateral Agent. IPALCO also agreed to register the 2020 IPALCO Notes under the Securities Act by filing an exchange offer registration statement or, under specified circumstances, a shelf registration statement with the SEC pursuant to a Registration Rights Agreement that IPALCO entered into with J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC, as representatives of the initial purchasers of the 2020 IPALCO Notes. IPALCO filed its registration statement on Form S-4 with respect to the 2020 IPALCO Notes with the SEC on September 28, 2015, and this registration statement was declared effective on October 15, 2015. The exchange offer was completed on November 16, 2015. Line of Credit IPL entered into an amendment and restatement of its 5 -year $250 million revolving credit facility in May 2014, and a further amendment and extension of the credit facility on October 16, 2015 (the “Credit Agreement”) with a syndication of banks. This Credit Agreement is an unsecured committed line of credit to be used: (i) to finance capital expenditures; (ii) to refinance indebtedness under the existing credit agreement; (iii) to support working capital; and (iv) for general corporate purposes. This agreement matures on October 16, 2020 , and bears interest at variable rates as described in the Credit Agreement. It includes an uncommitted $150 million accordion feature to provide IPL with an option to request an increase in the size of the facility at any time prior to October 16, 2019, subject to approval by the lenders. Prior to execution, IPL and IPALCO had existing general banking relationships with the parties in this agreement. As of June 30, 2016 and December 31, 2015 , IPL had $0.0 million and $75.0 million in outstanding borrowings on the committed line of credit, respectively. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES IPALCO’s effective combined state and federal income tax rates were 33.3% and 33.0% for the three and six months ended June 30, 2016, respectively, as compared to 38.4% and 35.4% for the three and six months ended June 30, 2015, respectively. The decrease in the effective tax rates versus the comparable periods was primarily the result of an increase in the allowance for equity funds used during construction in 2016 and the manufacturer’s production deduction (Internal Revenue Code Section 199) that had been previously disallowed due to a Net Operating Loss carryover. |
Benefit Plans
Benefit Plans | 6 Months Ended |
Jun. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Benefit Plans | BENEFIT PLANS The following table (in thousands) presents information for the six months ended June 30, 2016 , relating to the Pension Plans: Net unfunded status of plans: Net unfunded status at December 31, 2015, before tax adjustments $ (76,314 ) Net benefit cost components reflected in net unfunded status during first quarter: Service cost (1,754 ) Interest cost (6,454 ) Expected return on assets 10,873 Employer contributions 15,900 Net unfunded status at March 31, 2016, before tax adjustments $ (57,749 ) Net benefit cost components reflected in net unfunded status during second quarter: Service cost $ (1,755 ) Interest cost (6,454 ) Expected return on assets 10,874 Net unfunded status at June 30, 2016, before tax adjustments $ (55,084 ) Regulatory assets related to pensions (1) : Regulatory assets at December 31, 2015, before tax adjustments $ 235,094 Amount reclassified through net benefit cost: Amortization of prior service cost (1,296 ) Amortization of net actuarial loss (3,474 ) Regulatory assets at March 31, 2016, before tax adjustments $ 230,324 Amount reclassified through net benefit cost: Amortization of prior service cost $ (1,296 ) Amortization of net actuarial loss (3,474 ) Regulatory assets at June 30, 2016, before tax adjustments $ 225,554 (1) Amounts that would otherwise be charged/credited to Accumulated Other Comprehensive Income or Loss upon application of ASC 715, “Compensation – Retirement Benefits,” are recorded as a regulatory asset or liability because IPL has historically recovered and currently recovers pension and other postretirement benefit expenses in rates. These are unrecognized amounts yet to be recognized as components of net periodic benefit costs. Pension Expense The following table presents net periodic benefit cost information relating to the Pension Plans combined: For the Three Months Ended, For the Six Months Ended, June 30, June 30, 2016 2015 2016 2015 (In Thousands) (In Thousands) Components of net periodic benefit cost: Service cost $ 1,755 $ 2,078 $ 3,509 $ 4,157 Interest cost 6,454 7,408 12,908 14,816 Expected return on plan assets (10,874 ) (11,206 ) (21,747 ) (22,412 ) Amortization of prior service cost 1,296 1,217 2,592 2,433 Amortization of actuarial loss 3,474 3,475 6,948 6,950 Net periodic benefit cost $ 2,105 $ 2,972 $ 4,210 $ 5,944 In addition, IPL provides postretirement health care benefits to certain active or retired employees and the spouses of certain active or retired employees. These postretirement health care benefits and the related unfunded obligation were $4.7 million and $4.5 million at June 30, 2016 and December 31, 2015 , respectively. The related expense was not material to the Financial Statements in the periods covered by this report. |
Commitments And Contingencies
Commitments And Contingencies | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | COMMITMENTS AND CONTINGENCIES Legal Loss Contingencies IPALCO and IPL are involved in litigation arising in the normal course of business. While the results of such litigation cannot be predicted with certainty, management believes that the final outcome will not have a material adverse effect on IPALCO’s results of operations, financial condition and cash flows. Amounts accrued or expensed for legal or environmental contingencies collectively during the periods covered by this report have not been material to the Financial Statements of IPALCO. Environmental Loss Contingencies We are subject to various federal, state, regional and local environmental protection and health and safety laws and regulations governing, among other things, the generation, storage, handling, use, disposal and transportation of hazardous materials; the emission and discharge of hazardous and other materials into the environment; and the health and safety of our employees. These laws and regulations often require a lengthy and complex process of obtaining and renewing permits and other governmental authorizations from federal, state and local agencies. Violation of these laws, regulations or permits can result in substantial fines, other sanctions, permit revocation and/or facility shutdowns. We cannot assure that we have been or will be at all times in full compliance with such laws, regulations and permits. New Source Review In October 2009, IPL received a NOV and Finding of Violation from the EPA pursuant to the CAA Section 113(a). The NOV alleges violations of the CAA at IPL’s three primarily coal-fired electric generating facilities at the time, dating back to 1986. The alleged violations primarily pertain to the PSD and nonattainment New Source Review requirements under the CAA. Since receiving the letter, IPL management has met with the EPA staff regarding possible resolutions of the NOV. At this time, we cannot predict the ultimate resolution of this matter. However, settlements and litigated outcomes of similar cases have required companies to pay civil penalties, install additional pollution control technology on coal-fired electric generating units, retire existing generating units, and invest in additional environmental projects. A similar outcome in this case could have a material impact on our business. We would seek recovery of any operating or capital expenditures, but not fines or penalties, related to air pollution control technology to reduce regulated air emissions; however, there can be no assurances that we would be successful in this regard. IPL has recorded a contingent liability related to this matter. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS Service Company Effective January 1, 2014, the Service Company began providing services including operations, accounting, legal, human resources, information technology and other corporate services on behalf of companies that are part of the U.S. SBU, including among other companies, IPALCO and IPL. The Service Company allocates the costs for these services based on cost drivers designed to result in fair and equitable allocations. This includes ensuring that the regulated utilities served, including IPL, are not subsidizing costs incurred for the benefit of non-regulated businesses. Total costs incurred by the Service Company on behalf of IPALCO were $13.5 million and $12.2 million during the six-month periods ended June 30, 2016 and 2015 , respectively, and were included in “ Other operating expenses ” on our Unaudited Condensed Consolidated Statements of Operations. Total costs incurred by IPALCO on behalf of the Service Company were $4.1 million and $3.7 million during the six-month periods ended June 30, 2016 and 2015 , respectively. IPALCO had a prepaid balance with the Service Company of $3.2 million and $1.2 million as of June 30, 2016 and December 31, 2015 , respectively. CDPQ Please refer to Note 4, “Equity” for further details. Other In 2014, IPL engaged a third party vendor as part of its replacement generation construction projects. A member of the AES Board of Directors is also currently a member of the Supervisory Board of this vendor. IPL had billings from this vendor of $169.9 million and $91.1 million during the six-month periods ended June 30, 2016 and 2015, respectively. IPL had a payable balance to this vendor of $11.1 million and $34.0 million as of June 30, 2016 and December 31, 2015, respectively. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION Operating segments are components of an enterprise that engage in business activities from which it may earn revenues and incur expenses, for which separate financial information is available, and is evaluated regularly by the chief operating decision maker in assessing performance and deciding how to allocate resources. Substantially all of our business consists of the generation, transmission, distribution and sale of electric energy conducted through IPL which is a vertically integrated electric utility. IPALCO’s reportable business segment is its utility segment, with all other non-utility business activities aggregated separately. The non-utility category primarily includes the 2018 IPALCO Notes and the 2020 IPALCO Notes; approximately $15.2 million and $1.7 million of cash and cash equivalents, as of June 30, 2016 and December 31, 2015 , respectively; long-term investments of $5.1 million and $5.2 million at June 30, 2016 and December 31, 2015 , respectively; and income taxes, deferred taxes, and interest related to those items. All other non-utility assets represented less than 1% of IPALCO’s total assets as of June 30, 2016 and December 31, 2015 . Net income for the utility segment was $70.1 million and $45.0 million for the six-month periods ended June 30, 2016 and 2015, respectively, and $36.4 million and $15.3 million for the three-month periods ended June 30, 2016 and 2015 , respectively. The accounting policies of the identified segment are consistent with those policies and procedures described in the summary of significant accounting policies. Intersegment sales, if any, are generally based on prices that reflect the current market conditions. |
Overview and Summary Of Signi16
Overview and Summary Of Significant Accounting Policies (Policy) | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Use Of Management Estimates | Use of Management Estimates The preparation of financial statements in conformity with GAAP requires that management make certain 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. The reported amounts of revenues and expenses during the reporting period may also be affected by the estimates and assumptions that management is required to make. Actual results may differ from those estimates. |
New Accounting Pronouncements | New Accounting Pronouncements The following table provides a brief description of recent accounting pronouncements that had and/or could have a material impact on the Company’s consolidated financial statements: New Accounting Standards Adopted ASU Number and Name Description Date of Adoption Effect on the financial statements upon adoption 2015-15, Interest - Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements Given the absence of authoritative guidance within ASU 2015-03, this standard clarifies that the SEC Staff would not object to an entity presenting debt issuance costs related to line-of-credit arrangements as an asset that is subsequently amortized ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. Transition method: retrospective. January 1, 2016 Deferred financing costs related to lines-of-credit of approximately $0.3 million recorded within Deferred Debits were not reclassified as of December 31, 2015. 2015-03, Interest - Imputation of Interest (Subtopic 835-30) The standard simplifies the presentation of debt issuance costs by requiring that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the standard. Transition method: retrospective. January 1, 2016 Deferred financing costs of approximately $20.8 million previously classified within Deferred Debits were reclassified to reduce the related debt liabilities as of December 31, 2015. 2015-02, Consolidation — Amendments to the Consolidation Analysis (Topic 810) The standard makes targeted amendments to the current consolidation guidance and ends the deferral granted to investment companies from applying the VIE guidance. The standard amends the evaluation of whether (1) fees paid to a decision-maker or service providers represent a variable interest, (2) a limited partnership or similar entity has the characteristics of a VIE and (3) a reporting entity is the primary beneficiary of a VIE. Transition method: retrospective. January 1, 2016 There were no changes to the consolidation conclusions. New Accounting Standards Issued But Not Yet Effective ASU Number and Name Description Date of Adoption Effect on the financial statements upon adoption 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments This standard updates the impairment model for financial assets measured at amortized cost to an expected loss model rather than an incurred loss model. It also allows for the presentation of credit losses on available-for-sale debt securities as an allowance rather than a write down. Transition method: various. January 1, 2020 Early adoption is permitted only as of January 1, 2019. The Company is currently evaluating the impact of adopting the standard on its consolidated financial statements. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting The standard simplifies the following aspects of accounting for share-based payment awards: accounting for income taxes, classification of excess tax benefits on the statement of cash flows, forfeitures, statutory tax withholding requirements, classification of awards as either equity or liabilities and classification of employee taxes paid on statement of cash flows when an employer withholds shares for tax-withholding purposes. Transition method: Various. January 1, 2017. Early adoption is permitted. The Company is currently evaluating the impact of adopting the standard on its consolidated financial statements. 2016-06, Derivatives and Hedging (Topic 815) - Contingent Put and Call Options in Debt Instruments This standard clarifies the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. When a call (put) option is contingently exercisable, an entity will no longer assess whether the event that triggers the ability to exercise a call (put) option is related to interest rates or credit risks. Transition method: a modified retrospective basis to existing debt instruments as of the effective date. January 1, 2017. Early adoption is permitted. The Company is currently evaluating the impact of adopting the standard, but does not anticipate a material impact on its consolidated financial statements. 2016-05, Derivatives and Hedging (Topic 815) - Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships The standard clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument under Topic 815 does not require de-designation of that hedging relationship provided that all other hedge accounting criteria (including those in paragraphs 815-20-35-14 through 35-18) continue to be met. Transition method: prospective or a modified retrospective basis. January 1, 2017. Early adoption is permitted. The Company is currently evaluating the impact of adopting the standard, but does not anticipate a material impact on its consolidated financial statements. 2016-02, Leases (Topic 842) The standard creates Topic 842, Leases, which supersedes Topic 840, Leases, and introduces a lessee model that brings substantially all leases onto the balance sheet while retaining most of the principles of the existing lessor model in U.S. GAAP and aligning many of those principles with ASC 606, Revenue from Contracts with Customers. Transition method: modified retrospective approach with certain practical expedients. January 1, 2019. Early adoption is permitted. The Company is currently evaluating the impact of adopting the standard on its consolidated financial statements. 2016-01, Financial Instruments - Overall (Topic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities The standard significantly revises an entity’s accounting related to (1) the classification and measurement of investments in equity securities and (2) the presentation of certain fair value changes for financial liabilities measured at fair value. Also, it amends certain disclosure requirements associated with the fair value of financial instruments. Transition: cumulative effect in Retained Earnings as of adoption or prospectively for equity investments without readily determinable fair value. January 1, 2018. Limited early adoption permitted. The Company is currently evaluating the impact of adopting the standard, but does not anticipate a material impact on its consolidated financial statements. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory The standard replaces the current lower of cost or market test with a lower of cost or net realizable value test. Transition method: prospectively. January 1, 2017. Early adoption is permitted. The Company is currently evaluating the impact of adopting the standard on its consolidated financial statements. 2014-09, 2016-08, 2016-10, 2016-12 Revenue from Contracts with Customers (Topic 606), The Revenue from Contracts with Customers standard provides a single and comprehensive revenue recognition model for all contracts with customers to improve comparability. The standard contains principles to determine the measurement and timing of revenue recognition. The standard requires an entity to recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. The amendments to the standard provide further clarification on contract revenue recognition specifically related to the implementation of the principal versus agent evaluation, the identification of performance obligations, clarification on accounting for licenses of intellectual property, and allows for the election to account for shipping and handling activities performed after control of a good has been transferred to the customer as a fulfillment cost. Transition method: a full retrospective or modified retrospective approach. January 1, 2018 (deferred by ASU No. 2015-14). Early application is permitted only as of January 1, 2017. The Company is currently evaluating the impact of adopting the standard on its consolidated financial statements. |
Overview and Summary Of Signi17
Overview and Summary Of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements | The following table provides a brief description of recent accounting pronouncements that had and/or could have a material impact on the Company’s consolidated financial statements: New Accounting Standards Adopted ASU Number and Name Description Date of Adoption Effect on the financial statements upon adoption 2015-15, Interest - Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements Given the absence of authoritative guidance within ASU 2015-03, this standard clarifies that the SEC Staff would not object to an entity presenting debt issuance costs related to line-of-credit arrangements as an asset that is subsequently amortized ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. Transition method: retrospective. January 1, 2016 Deferred financing costs related to lines-of-credit of approximately $0.3 million recorded within Deferred Debits were not reclassified as of December 31, 2015. 2015-03, Interest - Imputation of Interest (Subtopic 835-30) The standard simplifies the presentation of debt issuance costs by requiring that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the standard. Transition method: retrospective. January 1, 2016 Deferred financing costs of approximately $20.8 million previously classified within Deferred Debits were reclassified to reduce the related debt liabilities as of December 31, 2015. 2015-02, Consolidation — Amendments to the Consolidation Analysis (Topic 810) The standard makes targeted amendments to the current consolidation guidance and ends the deferral granted to investment companies from applying the VIE guidance. The standard amends the evaluation of whether (1) fees paid to a decision-maker or service providers represent a variable interest, (2) a limited partnership or similar entity has the characteristics of a VIE and (3) a reporting entity is the primary beneficiary of a VIE. Transition method: retrospective. January 1, 2016 There were no changes to the consolidation conclusions. New Accounting Standards Issued But Not Yet Effective ASU Number and Name Description Date of Adoption Effect on the financial statements upon adoption 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments This standard updates the impairment model for financial assets measured at amortized cost to an expected loss model rather than an incurred loss model. It also allows for the presentation of credit losses on available-for-sale debt securities as an allowance rather than a write down. Transition method: various. January 1, 2020 Early adoption is permitted only as of January 1, 2019. The Company is currently evaluating the impact of adopting the standard on its consolidated financial statements. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting The standard simplifies the following aspects of accounting for share-based payment awards: accounting for income taxes, classification of excess tax benefits on the statement of cash flows, forfeitures, statutory tax withholding requirements, classification of awards as either equity or liabilities and classification of employee taxes paid on statement of cash flows when an employer withholds shares for tax-withholding purposes. Transition method: Various. January 1, 2017. Early adoption is permitted. The Company is currently evaluating the impact of adopting the standard on its consolidated financial statements. 2016-06, Derivatives and Hedging (Topic 815) - Contingent Put and Call Options in Debt Instruments This standard clarifies the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. When a call (put) option is contingently exercisable, an entity will no longer assess whether the event that triggers the ability to exercise a call (put) option is related to interest rates or credit risks. Transition method: a modified retrospective basis to existing debt instruments as of the effective date. January 1, 2017. Early adoption is permitted. The Company is currently evaluating the impact of adopting the standard, but does not anticipate a material impact on its consolidated financial statements. 2016-05, Derivatives and Hedging (Topic 815) - Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships The standard clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument under Topic 815 does not require de-designation of that hedging relationship provided that all other hedge accounting criteria (including those in paragraphs 815-20-35-14 through 35-18) continue to be met. Transition method: prospective or a modified retrospective basis. January 1, 2017. Early adoption is permitted. The Company is currently evaluating the impact of adopting the standard, but does not anticipate a material impact on its consolidated financial statements. 2016-02, Leases (Topic 842) The standard creates Topic 842, Leases, which supersedes Topic 840, Leases, and introduces a lessee model that brings substantially all leases onto the balance sheet while retaining most of the principles of the existing lessor model in U.S. GAAP and aligning many of those principles with ASC 606, Revenue from Contracts with Customers. Transition method: modified retrospective approach with certain practical expedients. January 1, 2019. Early adoption is permitted. The Company is currently evaluating the impact of adopting the standard on its consolidated financial statements. 2016-01, Financial Instruments - Overall (Topic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities The standard significantly revises an entity’s accounting related to (1) the classification and measurement of investments in equity securities and (2) the presentation of certain fair value changes for financial liabilities measured at fair value. Also, it amends certain disclosure requirements associated with the fair value of financial instruments. Transition: cumulative effect in Retained Earnings as of adoption or prospectively for equity investments without readily determinable fair value. January 1, 2018. Limited early adoption permitted. The Company is currently evaluating the impact of adopting the standard, but does not anticipate a material impact on its consolidated financial statements. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory The standard replaces the current lower of cost or market test with a lower of cost or net realizable value test. Transition method: prospectively. January 1, 2017. Early adoption is permitted. The Company is currently evaluating the impact of adopting the standard on its consolidated financial statements. 2014-09, 2016-08, 2016-10, 2016-12 Revenue from Contracts with Customers (Topic 606), The Revenue from Contracts with Customers standard provides a single and comprehensive revenue recognition model for all contracts with customers to improve comparability. The standard contains principles to determine the measurement and timing of revenue recognition. The standard requires an entity to recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. The amendments to the standard provide further clarification on contract revenue recognition specifically related to the implementation of the principal versus agent evaluation, the identification of performance obligations, clarification on accounting for licenses of intellectual property, and allows for the election to account for shipping and handling activities performed after control of a good has been transferred to the customer as a fulfillment cost. Transition method: a full retrospective or modified retrospective approach. January 1, 2018 (deferred by ASU No. 2015-14). Early application is permitted only as of January 1, 2017. The Company is currently evaluating the impact of adopting the standard on its consolidated financial statements. |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Regulated Operations [Abstract] | |
Schedule Of Regulatory Assets And Liabilities | The amounts of regulatory assets and regulatory liabilities are as follows: June 30, 2016 December 31, 2015 Recovery Period (In Thousands) Regulatory Assets Current: Undercollections of rate riders $ 8,632 $ — Approximately 1 year (1) Amounts being recovered through base rates 13,953 8,002 Approximately 1 year (1) Total current regulatory assets $ 22,585 $ 8,002 Long-term: Unrecognized pension and other postretirement benefit plan costs $ 217,698 $ 226,889 Various (2) Income taxes recoverable through rates 42,004 35,765 Various Deferred MISO costs 120,243 128,610 Through 2026 (3) Unamortized Petersburg Unit 4 carrying charges and certain other costs 10,720 11,248 Through 2026 (1) (4) Unamortized reacquisition premium on debt 22,616 23,268 Over remaining life of debt Environmental projects 29,392 16,876 Through 2034 (1)(4) Other miscellaneous 2,968 5,544 To be determined (1)(5) Total long-term regulatory assets $ 445,641 $ 448,200 Total regulatory assets $ 468,226 $ 456,202 Regulatory Liabilities Current: Deferred fuel over-collection $ 11,259 $ 19,746 Approximately 1 year (1) FTRs 10,035 4,150 Approximately 1 year (1) DSM program costs — 4,273 Approximately 1 year (1) Total current regulatory liabilities $ 21,294 $ 28,169 Long-term: ARO and accrued asset removal costs $ 651,725 $ 637,065 Not Applicable Unamortized investment tax credit 2,065 2,451 Through 2021 Other miscellaneous 208 — Total long-term regulatory liabilities $ 653,998 $ 639,516 Total regulatory liabilities $ 675,292 $ 667,685 (1) Recovered (credited) per specific rate orders (2) IPL receives a return on its discretionary funding (3) The majority of these costs are being recovered per specific rate order; for the remaining costs recovery is probable but timing not yet determined (4) Recovered with a current return (5) A portion of this amount will be recovered over the next two years |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule Of Face And Fair Value Of Debt | The following table shows the face value and the fair value of fixed-rate and variable-rate indebtedness (Level 2) for the periods ending: June 30, 2016 December 31, 2015 Face Value Fair Value Face Value Fair Value (In Millions) Fixed-rate $ 2,438.5 $ 2,716.8 $ 2,088.4 $ 2,225.3 Variable-rate 90.0 90.0 256.9 256.9 Total indebtedness $ 2,528.5 $ 2,806.8 $ 2,345.3 $ 2,482.2 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule Long-Term Indebtedness | The following table presents our long-term debt: June 30, December 31, Series Due 2016 2015 (In Thousands) IPL first mortgage bonds: 5.40% (1) August 2017 $ 24,650 $ 24,650 3.875% (2) August 2021 55,000 55,000 3.875% (2) August 2021 40,000 40,000 4.55% (2) December 2024 40,000 40,000 6.60% January 2034 100,000 100,000 6.05% October 2036 158,800 158,800 6.60% June 2037 165,000 165,000 4.875% November 2041 140,000 140,000 4.65% June 2043 170,000 170,000 4.50% June 2044 130,000 130,000 4.70% September 2045 260,000 260,000 4.05% May 2046 350,000 — Unamortized discount – net (6,537 ) (4,242 ) Deferred financing costs (3) (17,429 ) (13,703 ) Total IPL first mortgage bonds 1,609,484 1,265,505 IPL unsecured debt: Variable (4) December 2020 30,000 30,000 Variable (4) December 2020 60,000 60,000 Total IPL unsecured debt 90,000 90,000 Total Long-term Debt – IPL 1,699,484 1,355,505 Long-term Debt – IPALCO: 5.00% Senior Secured Notes May 2018 400,000 400,000 3.45% Senior Secured Notes July 2020 405,000 405,000 Unamortized discount – net (335 ) (371 ) Deferred financing costs (3) (5,949 ) (6,858 ) Total Long-term Debt – IPALCO 798,716 797,771 Total Consolidated IPALCO Long-term Debt $ 2,498,200 $ 2,153,276 (1) First mortgage bonds are issued to the city of Petersburg, Indiana, to secure the loan of proceeds from tax-exempt bonds issued by the city. (2) First mortgage bonds are issued to the Indiana Finance Authority, to secure the loan of proceeds from tax-exempt bonds issued by the Indiana Finance Authority. (3) The Company adopted ASU No. 2015-03 on January 1, 2016, which requires the use of the full retrospective approach with respect to the presentation of debt issuance costs, including deferred charges. (4) Unsecured notes are issued to the Indiana Finance Authority by IPL to facilitate the loan of proceeds from various tax-exempt notes issued by the Indiana Finance Authority. The notes have a final maturity date of December 2038, but are subject to a mandatory put in December 2020. |
Benefit Plans (Tables)
Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule Of Defined Benefit Plans Disclosures | The following table (in thousands) presents information for the six months ended June 30, 2016 , relating to the Pension Plans: Net unfunded status of plans: Net unfunded status at December 31, 2015, before tax adjustments $ (76,314 ) Net benefit cost components reflected in net unfunded status during first quarter: Service cost (1,754 ) Interest cost (6,454 ) Expected return on assets 10,873 Employer contributions 15,900 Net unfunded status at March 31, 2016, before tax adjustments $ (57,749 ) Net benefit cost components reflected in net unfunded status during second quarter: Service cost $ (1,755 ) Interest cost (6,454 ) Expected return on assets 10,874 Net unfunded status at June 30, 2016, before tax adjustments $ (55,084 ) Regulatory assets related to pensions (1) : Regulatory assets at December 31, 2015, before tax adjustments $ 235,094 Amount reclassified through net benefit cost: Amortization of prior service cost (1,296 ) Amortization of net actuarial loss (3,474 ) Regulatory assets at March 31, 2016, before tax adjustments $ 230,324 Amount reclassified through net benefit cost: Amortization of prior service cost $ (1,296 ) Amortization of net actuarial loss (3,474 ) Regulatory assets at June 30, 2016, before tax adjustments $ 225,554 (1) Amounts that would otherwise be charged/credited to Accumulated Other Comprehensive Income or Loss upon application of ASC 715, “Compensation – Retirement Benefits,” are recorded as a regulatory asset or liability because IPL has historically recovered and currently recovers pension and other postretirement benefit expenses in rates. These are unrecognized amounts yet to be recognized as components of net periodic benefit costs. |
Schedule Of Net Periodic Benefit Costs | The following table presents net periodic benefit cost information relating to the Pension Plans combined: For the Three Months Ended, For the Six Months Ended, June 30, June 30, 2016 2015 2016 2015 (In Thousands) (In Thousands) Components of net periodic benefit cost: Service cost $ 1,755 $ 2,078 $ 3,509 $ 4,157 Interest cost 6,454 7,408 12,908 14,816 Expected return on plan assets (10,874 ) (11,206 ) (21,747 ) (22,412 ) Amortization of prior service cost 1,296 1,217 2,592 2,433 Amortization of actuarial loss 3,474 3,475 6,948 6,950 Net periodic benefit cost $ 2,105 $ 2,972 $ 4,210 $ 5,944 |
Overview and Summary of Signi22
Overview and Summary of Significant Accounting Policies (Details) customer in Thousands, $ in Thousands | 6 Months Ended | |
Jun. 30, 2016USD ($)customergenerating_stationmiMW | Dec. 31, 2015USD ($) | |
Debt Instrument [Line Items] | ||
Distance of furthest customer from Indianapolis | mi | 40 | |
Number of generating stations | generating_station | 4 | |
Deferred financing costs | $ 23,400 | $ 20,800 |
Adjustments for New Accounting Pronouncement [Member] | ||
Debt Instrument [Line Items] | ||
Deferred financing costs | (20,800) | |
Aes U.S. Investments [Member] | ||
Debt Instrument [Line Items] | ||
Ownership percentage by parent (percent) | 82.35% | |
CDPQ [Member] | ||
Debt Instrument [Line Items] | ||
Ownership percentage by parent (percent) | 17.65% | |
Ownership interest in parent company (percent) | 15.00% | |
Percentage of direct and indirect ownership share of IPALCO | 30.00% | |
AES U.S. Holdings, LLC [Member] | ||
Debt Instrument [Line Items] | ||
Ownership interest in parent company (percent) | 85.00% | |
Indianapolis Power And Light Company [Member] | ||
Debt Instrument [Line Items] | ||
Number of customers | customer | 480 | |
Electric generation capability for winter, megawatts | MW | 2,993 | |
Electric generation capability for summer, megawatts | MW | 2,878 | |
Deferred financing costs | $ 17,429 | 13,703 |
Deferred Debits [Member] | Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Deferred financing costs | $ 300 |
Regulatory Matters (Details)
Regulatory Matters (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | |
Mar. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | |
Regulatory Matters [Line Items] | |||
Approved increase to basic rates and charges | $ 30,800 | ||
Wholesale sales margins, percent shared with customers | 50.00% | ||
Total current regulatory assets | $ 22,585 | $ 8,002 | |
Total long-term regulatory assets | 445,641 | 448,200 | |
Total regulatory assets | 468,226 | 456,202 | |
Total current regulatory liabilities | 21,294 | 28,169 | |
Total long-term regulatory liabilities | 653,998 | 639,516 | |
Total regulatory liabilities | 675,292 | 667,685 | |
Deferred fuel [Member] | |||
Regulatory Matters [Line Items] | |||
Total current regulatory liabilities | $ 11,259 | 19,746 | |
Regulatory liability recovery period | 1 year | ||
FTRs [Member] | |||
Regulatory Matters [Line Items] | |||
Total current regulatory liabilities | $ 10,035 | 4,150 | |
Regulatory liability recovery period | 1 year | ||
DSM program costs [Member] | |||
Regulatory Matters [Line Items] | |||
Total current regulatory liabilities | $ 0 | 4,273 | |
Regulatory liability recovery period | 1 year | ||
ARO and accrual asset removal costs [Member] | |||
Regulatory Matters [Line Items] | |||
Total long-term regulatory liabilities | $ 651,725 | 637,065 | |
Unamortized investment tax credit [Member] | |||
Regulatory Matters [Line Items] | |||
Total long-term regulatory liabilities | 2,065 | 2,451 | |
Other Miscellaneous [Member] | |||
Regulatory Matters [Line Items] | |||
Total long-term regulatory liabilities | 208 | 0 | |
Undercollections of rate riders [Member] | |||
Regulatory Matters [Line Items] | |||
Total current regulatory assets | 8,632 | 0 | |
Amounts being recovered through base rates [Member] | |||
Regulatory Matters [Line Items] | |||
Total current regulatory assets | 13,953 | 8,002 | |
Environmental projects [Member] | |||
Regulatory Matters [Line Items] | |||
Total long-term regulatory assets | $ 29,392 | 16,876 | |
Regulatory asset recovery period | 1 year | ||
Deferred MISO Non-fuel Costs [Member] | |||
Regulatory Matters [Line Items] | |||
Total current regulatory assets | $ 11,800 | ||
Regulatory asset recovery period | 1 year | ||
Other Miscellaneous [Member] | |||
Regulatory Matters [Line Items] | |||
Total long-term regulatory assets | $ 2,968 | 5,544 | |
Regulatory asset recovery period | 1 year | ||
Unrecognized oension and other postretirement benefit plan costs [Member] | |||
Regulatory Matters [Line Items] | |||
Total long-term regulatory assets | $ 217,698 | 226,889 | |
Income taxes recoverable through rates [Member] | |||
Regulatory Matters [Line Items] | |||
Total long-term regulatory assets | 42,004 | 35,765 | |
Deferred MISO Costs [Member] | |||
Regulatory Matters [Line Items] | |||
Total long-term regulatory assets | 120,243 | 128,610 | |
Total regulatory assets | 117,700 | ||
Unamortized Petersburg Unit 4 carrying charges and certain other costs [Member] | |||
Regulatory Matters [Line Items] | |||
Total long-term regulatory assets | 10,720 | 11,248 | |
Unamortized reacquisition premium on debt [Member] | |||
Regulatory Matters [Line Items] | |||
Total long-term regulatory assets | $ 22,616 | $ 23,268 | |
Long-term Other Miscellaneous [Member] | |||
Regulatory Matters [Line Items] | |||
Regulatory asset recovery period | 2 years | ||
Increase to Annual Depreciation Rate [Member] | |||
Regulatory Matters [Line Items] | |||
Approved increase to basic rates and charges | $ 24,300 |
Fair Value (Narrative) (Details
Fair Value (Narrative) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value Disclosures [Abstract] | ||
Asset retirement obligations | $ 58,513 | $ 58,986 |
Unamortized deferred financing costs | 23,400 | 20,800 |
Unamortized debt discount | $ 4,600 | $ 4,600 |
Fair Value (Schedule Of Face An
Fair Value (Schedule Of Face And Fair Value Of Debt) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Face Value | $ 2,528.5 | $ 2,345.3 |
Fair Value | 2,806.8 | 2,482.2 |
Fixed Rate [Member] | ||
Debt Instrument [Line Items] | ||
Face Value | 2,438.5 | 2,088.4 |
Fair Value | 2,716.8 | 2,225.3 |
Variable Rate [Member] | ||
Debt Instrument [Line Items] | ||
Face Value | 90 | 256.9 |
Fair Value | $ 90 | $ 256.9 |
Equity (Details)
Equity (Details) - USD ($) $ in Thousands | Jun. 01, 2016 | Mar. 01, 2016 | Apr. 01, 2015 | Feb. 11, 2015 | Jun. 30, 2016 | Jun. 30, 2015 |
Class of Stock [Line Items] | ||||||
Proceeds from Contributions from Parent | $ 0 | |||||
Proceeds from Contributed Capital | $ 78,738 | |||||
Common Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Number of shares issued and sold (shares) | 7,403,213 | 11,818,828 | 100 | |||
Value of shares issued and sold | $ 134,300 | $ 214,400 | ||||
CDPQ [Member] | ||||||
Class of Stock [Line Items] | ||||||
Percentage of direct and indirect ownership share of IPALCO | 30.00% | |||||
Parent Company [Member] | ||||||
Class of Stock [Line Items] | ||||||
Proceeds from Contributions from Parent | $ 64,800 | |||||
Shareholder [Member] | ||||||
Class of Stock [Line Items] | ||||||
Proceeds from Contributed Capital | $ 13,900 |
Debt (Schedule Long-Term Indebt
Debt (Schedule Long-Term Indebtedness) (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2016 | May 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||
Unamortized discount - net | $ (4,600) | $ (4,600) | |
Deferred financing costs | (23,400) | (20,800) | |
Long-term debt | 2,498,200 | 2,153,276 | |
Net Consolidated IPALCO Long-term Debt | 2,498,200 | 2,153,276 | |
Indianapolis Power And Light Company [Member] | |||
Debt Instrument [Line Items] | |||
First mortgage bonds | 1,609,484 | 1,265,505 | |
Unamortized discount - net | (6,537) | (4,242) | |
Deferred financing costs | (17,429) | (13,703) | |
Long-term debt | 1,699,484 | 1,355,505 | |
Unsecured Debt | $ 90,000 | 90,000 | |
Indianapolis Power And Light Company [Member] | First Mortgage Bond 5.40% Due August 2017 [Member] | |||
Debt Instrument [Line Items] | |||
Debt, stated interest rate | 5.40% | ||
Debt due date | Aug. 1, 2017 | ||
First mortgage bonds | $ 24,650 | 24,650 | |
Indianapolis Power And Light Company [Member] | First Mortgage Bond 3.875% Due August 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Debt, stated interest rate | 3.875% | ||
Debt due date | Aug. 1, 2021 | ||
First mortgage bonds | $ 55,000 | 55,000 | |
Indianapolis Power And Light Company [Member] | First Mortgage Bond 3.875% Due August 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Debt, stated interest rate | 3.875% | ||
Debt due date | Aug. 1, 2021 | ||
First mortgage bonds | $ 40,000 | 40,000 | |
Indianapolis Power And Light Company [Member] | First Mortgage Bond 4.55% Due December 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Debt, stated interest rate | 4.55% | ||
Debt due date | Dec. 1, 2024 | ||
First mortgage bonds | $ 40,000 | 40,000 | |
Indianapolis Power And Light Company [Member] | First Mortgage Bond 6.60% Due January 2034 [Member] | |||
Debt Instrument [Line Items] | |||
Debt, stated interest rate | 6.60% | ||
Debt due date | Jan. 1, 2034 | ||
First mortgage bonds | $ 100,000 | 100,000 | |
Indianapolis Power And Light Company [Member] | First Mortgage Bond 6.05% Due October 2036 [Member] | |||
Debt Instrument [Line Items] | |||
Debt, stated interest rate | 6.05% | ||
Debt due date | Oct. 1, 2036 | ||
First mortgage bonds | $ 158,800 | 158,800 | |
Indianapolis Power And Light Company [Member] | First Mortgage Bond 6.60% Due June 2037 [Member] | |||
Debt Instrument [Line Items] | |||
Debt, stated interest rate | 6.60% | ||
Debt due date | Jun. 1, 2037 | ||
First mortgage bonds | $ 165,000 | 165,000 | |
Indianapolis Power And Light Company [Member] | First Mortgage Bond 4.875% Due November 2041 [Member] | |||
Debt Instrument [Line Items] | |||
Debt, stated interest rate | 4.875% | ||
Debt due date | Nov. 1, 2041 | ||
First mortgage bonds | $ 140,000 | 140,000 | |
Indianapolis Power And Light Company [Member] | First Mortgage Bond 4.65% Due June 2043 [Member] | |||
Debt Instrument [Line Items] | |||
Debt, stated interest rate | 4.65% | ||
Debt due date | Jun. 1, 2043 | ||
First mortgage bonds | $ 170,000 | 170,000 | |
Indianapolis Power And Light Company [Member] | First Mortgage Bond 4.50% Due June 2044[Member] | |||
Debt Instrument [Line Items] | |||
Debt, stated interest rate | 4.50% | ||
Debt due date | Jun. 1, 2044 | ||
First mortgage bonds | $ 130,000 | 130,000 | |
Indianapolis Power And Light Company [Member] | First Mortgage Bond 4.70%, Due September 2045 [Member] | |||
Debt Instrument [Line Items] | |||
Debt, stated interest rate | 4.70% | ||
Debt due date | Sep. 1, 2045 | ||
First mortgage bonds | $ 260,000 | 260,000 | |
Indianapolis Power And Light Company [Member] | First Mortgage Bond 4.05% Due May 2046 | |||
Debt Instrument [Line Items] | |||
Debt, stated interest rate | 4.05% | 4.05% | |
Debt due date | May 1, 2046 | ||
First mortgage bonds | $ 350,000 | 0 | |
Indianapolis Power And Light Company [Member] | Environmental Facilities Refunding Revenue Notes, Series 2015A [Member] | |||
Debt Instrument [Line Items] | |||
Debt due date | Dec. 22, 2020 | ||
Unsecured Debt | $ 30,000 | 30,000 | |
Indianapolis Power And Light Company [Member] | Environmental Facilities Refunding Revenue Notes, Series 2015B [Member] | |||
Debt Instrument [Line Items] | |||
Debt due date | Dec. 22, 2020 | ||
Unsecured Debt | $ 60,000 | 60,000 | |
Ipalco Enterprises, Inc. [Member] | |||
Debt Instrument [Line Items] | |||
Unamortized discount - net | (335) | (371) | |
Deferred financing costs | (5,949) | (6,858) | |
Net Consolidated IPALCO Long-term Debt | $ 798,716 | 797,771 | |
Ipalco Enterprises, Inc. [Member] | 5.00% Senior Secured Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt, stated interest rate | 5.00% | ||
Debt due date | May 1, 2018 | ||
Long-term debt | $ 400,000 | 400,000 | |
Ipalco Enterprises, Inc. [Member] | 3.45% Senior Secured Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt, stated interest rate | 3.45% | ||
Debt due date | Jul. 1, 2020 | ||
Long-term debt | $ 405,000 | $ 405,000 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | May 31, 2016 | Jun. 30, 2015 | May 31, 2014 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | May 17, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | |||||||||
Net Income (Loss) Attributable to Parent | $ 30,072,000 | $ (5,265,000) | $ 57,477,000 | $ 16,944,000 | |||||
Long-term Debt | 2,498,200,000 | 2,498,200,000 | $ 2,153,276,000 | ||||||
Gains (Losses) on Extinguishment of Debt | 0 | (19,323,000) | 0 | (19,323,000) | |||||
Proceeds from Issuance of First Mortgage Bond | 2,528,500,000 | 2,528,500,000 | 2,345,300,000 | ||||||
Line of credit facility, term | 5 years | ||||||||
Maximum borrowing capacity | $ 250,000,000 | ||||||||
Line of credit facility, accordion feature | $ 150,000,000 | ||||||||
Line of credit, outstanding borrowings | 0 | $ 0 | 75,000,000 | ||||||
Letter of Credit [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, maturity date | Oct. 16, 2020 | ||||||||
Indianapolis Power And Light Company [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term Debt | $ 1,699,484,000 | $ 1,699,484,000 | 1,355,505,000 | ||||||
Indianapolis Power And Light Company [Member] | First Mortgage Bond 4.05% Due May 2046 | |||||||||
Debt Instrument [Line Items] | |||||||||
Proceeds from Issuance of First Mortgage Bond | $ 350,000,000 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.05% | 4.05% | 4.05% | ||||||
Debt instrument, maturity date | May 1, 2046 | ||||||||
Proceeds from Issuance of Secured Debt | $ 343,600,000 | ||||||||
Indianapolis Power And Light Company [Member] | First Mortgage Bond Nineteen [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Proceeds from Issuance of First Mortgage Bond | 350,000,000 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.70% | 4.70% | |||||||
Debt instrument, maturity date | Sep. 1, 2045 | ||||||||
Parent Company [Member] | Seven Point Two Five Percent Senior Secured Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term Debt | $ 33,500,000 | 33,500,000 | 33,500,000 | ||||||
Extinguishment of Debt, Amount | $ 366,500,000 | ||||||||
Parent Company [Member] | Three Point Four Five Percent Senior Secured Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term Debt | $ 405,000,000 | $ 405,000,000 | $ 405,000,000 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.45% | 3.45% | |||||||
Debt instrument, maturity date | Jul. 1, 2020 | ||||||||
Debt Instrument, Ratio of Principal to Public Offering Price | 99.929% | ||||||||
Proceeds from Issuance of Secured Debt | $ 399,500,000 | ||||||||
Other Nonoperating Income (Expense) [Member] | Parent Company [Member] | Seven Point Two Five Percent Senior Secured Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Gains (Losses) on Extinguishment of Debt | $ (19,300,000) | ||||||||
Medium-term Notes [Member] | Indianapolis Power And Light Company [Member] | Unsecured 364-day Taxable Term Loan [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Proceeds from Issuance of First Mortgage Bond | $ 91,900,000 | ||||||||
Line of credit facility, term | 364 days | ||||||||
Utility Segment [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Net Income (Loss) Attributable to Parent | $ 36,400,000 | $ 15,300,000 | $ 70,100,000 | $ 45,000,000 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | ||||
State and federal income tax rate | 33.30% | 38.40% | 33.00% | 35.40% |
Benefit Plans (Narrative) (Deta
Benefit Plans (Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Postretirement Health Care Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Unfunded obligation | $ 4.7 | $ 4.5 |
Benefit Plans (Schedule Of Defi
Benefit Plans (Schedule Of Defined Benefit Plans Disclosures) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Net Unfunded Status of Plans [Roll Forward] | |||||
Net funded status before tax adjustments | $ (57,749) | $ (76,314) | $ (76,314) | ||
Service cost | (1,755) | (1,754) | $ (2,078) | (3,509) | $ (4,157) |
Interest cost | (6,454) | (6,454) | (7,408) | (12,908) | (14,816) |
Expected return on assets | 10,874 | 10,873 | 11,206 | 21,747 | 22,412 |
Employer contributions | 15,900 | ||||
Net funded status before tax adjustments | (55,084) | (57,749) | (55,084) | ||
Regulatory Assets Related to Pensions [Roll Forward] | |||||
Regulatory assets before tax adjustments | 456,202 | 456,202 | |||
Amortization of prior service cost | (1,296) | (1,217) | (2,592) | (2,433) | |
Amortization of net actuarial loss | (3,474) | $ (3,475) | (6,948) | $ (6,950) | |
Regulatory assets before tax adjustments | 468,226 | 468,226 | |||
Pension Plan [Member] | |||||
Regulatory Assets Related to Pensions [Roll Forward] | |||||
Regulatory assets before tax adjustments | 230,324 | 235,094 | 235,094 | ||
Amortization of prior service cost | (1,296) | (1,296) | |||
Amortization of net actuarial loss | (3,474) | (3,474) | |||
Regulatory assets before tax adjustments | $ 225,554 | $ 230,324 | $ 225,554 |
Benefit Plans (Schedule Of Net
Benefit Plans (Schedule Of Net Periodic Benefit Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |||||
Service cost | $ 1,755 | $ 1,754 | $ 2,078 | $ 3,509 | $ 4,157 |
Interest cost | 6,454 | 6,454 | 7,408 | 12,908 | 14,816 |
Expected return on assets | (10,874) | $ (10,873) | (11,206) | (21,747) | (22,412) |
Amortization of prior service cost | 1,296 | 1,217 | 2,592 | 2,433 | |
Amortization of actuarial loss | 3,474 | 3,475 | 6,948 | 6,950 | |
Net periodic benefit cost | $ 2,105 | $ 2,972 | $ 4,210 | $ 5,944 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 1 Months Ended |
Oct. 31, 2009coal_fired_electric_generating_facility | |
Indianapolis Power And Light Company [Member] | |
Entity Information [Line Items] | |
Number of facilities with violations of Federal Clean Air Act | 3 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Service Company [Member] | |||
Related Party Transaction [Line Items] | |||
Costs incurred by related party | $ 13.5 | $ 12.2 | |
Prepaid balance to related party | 3.2 | $ 1.2 | |
Director [Member] | |||
Related Party Transaction [Line Items] | |||
Billings from related vendor | 169.9 | 91.1 | |
Accounts payable to related vendor | 11.1 | $ 34 | |
Ipalco Enterprises, Inc. [Member] | |||
Related Party Transaction [Line Items] | |||
Costs incurred by related party | $ 4.1 | $ 3.7 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||||
Cash | $ 15,200 | $ 15,200 | $ 1,700 | ||
Long-term nonutility investments | 5,100 | $ 5,100 | $ 5,200 | ||
Nonutility assets representation rate (percentage, less than) | 1.00% | 1.00% | |||
Net income | 30,072 | $ (5,265) | $ 57,477 | $ 16,944 | |
Utility Segment [Member] | |||||
Debt Instrument [Line Items] | |||||
Net income | $ 36,400 | $ 15,300 | $ 70,100 | $ 45,000 |
Uncategorized Items - cik000072
Label | Element | Value |
Income Taxes Paid, Net | us-gaap_IncomeTaxesPaidNet | $ 0 |