Cover Document
Cover Document $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($)shares | |
Entity Information [Line Items] | |
Entity Central Index Key | 0000728391 |
Entity Filer Category | Non-accelerated Filer |
Document Annual Report | true |
Current Fiscal Year End Date | --12-31 |
Document Transition Report | false |
Entity Registrant Name | IPALCO ENTERPRISES, INC. |
Entity Incorporation, State or Country Code | IN |
Entity File Number | 1-8644 |
Entity Tax Identification Number | 35-1575582 |
Entity Address, Address Line One | One Monument Circle |
Entity Address, City or Town | Indianapolis |
Entity Address, State or Province | IN |
Entity Address, Postal Zip Code | 46204 |
City Area Code | 317 |
Local Phone Number | 261-8261 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | Yes |
Entity Current Reporting Status | No |
Entity Interactive Data Current | Yes |
Entity Small Business | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 108,907,318 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus (i.e. Q1,Q2,Q3,FY) | FY |
Amendment Flag | false |
Entity Public Float | $ | $ 0 |
ICFR Auditor Attestation Flag | false |
ICFR Auditor Attestation Flag | false |
Document Type | 10-K |
Document Period End Date | Dec. 31, 2020 |
AES U.S. Investments [Member] | |
Entity Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 89,685,177 |
CDPQ [Member] | |
Entity Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 19,222,141 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
REVENUES | $ 1,352,985 | $ 1,481,643 | $ 1,450,505 |
OPERATING COSTS AND EXPENSES: | |||
Fuel | 247,105 | 340,466 | 331,701 |
Utilities Operating Expense, Purchased Power | 135,767 | 133,674 | 164,542 |
Utilities Operating Expense, Maintenance and Operations | 416,169 | 428,201 | 431,620 |
Depreciation and amortization | 246,896 | 240,314 | 232,332 |
Taxes other than income taxes | 44,516 | 42,236 | 53,952 |
Operating Expenses | 1,090,453 | 1,184,891 | 1,214,147 |
Operating Income (Loss) | 262,532 | 296,752 | 236,358 |
OTHER INCOME / (EXPENSE), NET: | |||
Allowance for equity funds used during construction | 4,574 | 3,486 | 8,477 |
Interest Expense | (129,493) | (121,771) | (95,509) |
Loss on early extinguishment of debt | (2,424) | 0 | 0 |
Other income / (expense), net | 3,370 | (10,546) | (1,852) |
Total other income / (expense), net | (123,973) | (128,831) | (88,884) |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 138,559 | 167,921 | 147,474 |
Less: income tax expense | 28,592 | 35,528 | 13,449 |
NET INCOME | 109,967 | 132,393 | 134,025 |
Less: dividends on preferred stock | 3,213 | 3,213 | 3,213 |
NET INCOME APPLICABLE TO COMMON STOCK | 106,754 | 129,180 | 130,812 |
Indianapolis Power And Light Company | |||
REVENUES | 1,352,985 | 1,481,643 | 1,450,505 |
OPERATING COSTS AND EXPENSES: | |||
Fuel | 247,105 | 340,466 | 331,701 |
Utilities Operating Expense, Purchased Power | 135,767 | 133,674 | 164,542 |
Utilities Operating Expense, Maintenance and Operations | 415,824 | 427,803 | 431,125 |
Depreciation and amortization | 246,896 | 240,314 | 232,332 |
Taxes other than income taxes | 44,516 | 42,229 | 53,941 |
Operating Expenses | 1,090,108 | 1,184,486 | 1,213,641 |
Operating Income (Loss) | 262,877 | 297,157 | 236,864 |
OTHER INCOME / (EXPENSE), NET: | |||
Allowance for equity funds used during construction | 4,574 | 3,486 | 8,477 |
Interest Expense | (87,478) | (89,014) | (64,472) |
Other income / (expense), net | 4,201 | (10,922) | (1,916) |
Total other income / (expense), net | (78,703) | (96,450) | (57,911) |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 184,174 | 200,707 | 178,953 |
Less: income tax expense | 40,134 | 43,430 | 21,590 |
NET INCOME | 144,040 | 157,277 | 157,363 |
Less: dividends on preferred stock | 3,213 | 3,213 | 3,213 |
NET INCOME APPLICABLE TO COMMON STOCK | 140,827 | 154,064 | 154,150 |
Electricity [Member] | |||
REVENUES | 1,352,985 | 1,481,643 | 1,450,505 |
Electricity [Member] | Indianapolis Power And Light Company | |||
REVENUES | $ 1,352,985 | $ 1,481,643 | $ 1,450,505 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 20,502 | $ 48,152 |
Restricted Cash and Cash Equivalents | 6,120 | 400 |
Accounts Receivable, after Allowance for Credit Loss, Current | 165,193 | 161,090 |
Inventory, Net | 95,506 | 83,569 |
Regulatory assets | 45,430 | 37,398 |
Income Taxes Receivable, Current | 24,384 | 23,670 |
Other Assets, Current | 17,842 | 17,264 |
Total current assets | 374,977 | 371,543 |
NON-CURRENT ASSETS: | ||
Property, plant and equipment | 6,530,395 | 6,398,612 |
Less: Accumulated depreciation | 2,643,695 | 2,414,652 |
3,886,700 | 3,983,960 | |
Construction work in progress | 209,584 | 130,609 |
Property, Plant and Equipment, Net | 4,096,284 | 4,114,569 |
OTHER NON-CURRENT ASSETS: | ||
Intangible Assets, Net (Excluding Goodwill) | 59,141 | 64,861 |
Regulatory assets | 392,801 | 355,614 |
Total other non-current assets | 46,716 | 22,082 |
Assets, Noncurrent | 498,658 | 442,557 |
TOTAL ASSETS | 4,969,919 | 4,928,669 |
CURRENT LIABILITIES: | ||
Short-term debt | 169,907 | 559,199 |
Accounts payable | 127,089 | 128,521 |
Accrued taxes | 26,620 | 22,012 |
Accrued interest | 31,733 | 35,334 |
Customer deposits | 27,929 | 34,635 |
Regulatory liabilities | 30,036 | 52,654 |
Accrued and other current liabilities | 19,453 | 23,300 |
Total current liabilities | 432,767 | 882,215 |
NON-CURRENT LIABILITIES: | ||
Long-term debt | 2,556,278 | 2,092,430 |
Deferred income tax liabilities | 275,714 | 272,861 |
Taxes payable | 7,458 | 4,658 |
Regulatory liabilities | 839,360 | 846,430 |
Accrued pension and other postretirement benefits | 5,334 | 19,344 |
Asset retirement obligations | 195,236 | 204,219 |
Other non-current liabilities | 13,785 | 252 |
Total non-current liabilities | 3,956,380 | 3,440,194 |
Liabilities | 4,389,147 | 4,322,409 |
Common shareholders' equity: | ||
Additional Paid in Capital | 588,966 | 590,784 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (43,420) | (19,750) |
Accumulated deficit | (24,558) | (24,558) |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 520,988 | 546,476 |
Cumulative preferred stock of subsidiary | 59,784 | 59,784 |
Total common shareholders' equity | 580,772 | 606,260 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 4,969,919 | 4,928,669 |
Accounts receivable and unbilled revenue, allowance for doubtful accounts | 3,155 | 921 |
Derivative Liability, Noncurrent | 63,215 | 0 |
Derivative Liability, Current | 0 | 26,560 |
Indianapolis Power And Light Company | ||
CURRENT ASSETS: | ||
Cash and cash equivalents | 17,946 | 42,189 |
Restricted Cash and Cash Equivalents | 5 | 400 |
Accounts Receivable, after Allowance for Credit Loss, Current | 165,435 | 161,365 |
Inventory, Net | 95,506 | 83,569 |
Regulatory assets | 45,430 | 37,398 |
Income Taxes Receivable, Current | 12,531 | 23,134 |
Other Assets, Current | 23,944 | 17,264 |
Total current assets | 360,797 | 365,319 |
NON-CURRENT ASSETS: | ||
Property, plant and equipment | 6,530,395 | 6,398,612 |
Less: Accumulated depreciation | 2,643,695 | 2,414,652 |
3,886,700 | 3,983,960 | |
Construction work in progress | 209,584 | 130,609 |
Property, Plant and Equipment, Net | 4,096,284 | 4,114,569 |
OTHER NON-CURRENT ASSETS: | ||
Intangible Assets, Net (Excluding Goodwill) | 59,141 | 64,861 |
Regulatory assets | 392,801 | 355,614 |
Total other non-current assets | 43,386 | 18,045 |
Assets, Noncurrent | 495,328 | 438,520 |
TOTAL ASSETS | 4,952,409 | 4,918,408 |
CURRENT LIABILITIES: | ||
Short-term debt | 169,907 | 89,886 |
Accounts payable | 126,772 | 128,504 |
Accrued taxes | 26,620 | 22,012 |
Accrued interest | 23,340 | 23,857 |
Customer deposits | 27,929 | 34,635 |
Regulatory liabilities | 30,036 | 52,654 |
Accrued and other current liabilities | 26,653 | 37,500 |
Total current liabilities | 431,257 | 389,048 |
NON-CURRENT LIABILITIES: | ||
Long-term debt | 1,685,503 | 1,691,015 |
Deferred income tax liabilities | 289,799 | 279,159 |
Taxes payable | 7,458 | 4,658 |
Regulatory liabilities | 839,360 | 846,430 |
Accrued pension and other postretirement benefits | 5,334 | 19,344 |
Asset retirement obligations | 195,236 | 204,219 |
Other non-current liabilities | 13,785 | 252 |
Total non-current liabilities | 3,036,475 | 3,045,077 |
Liabilities | 3,467,732 | 3,434,125 |
Common shareholders' equity: | ||
Common Stock, Value, Issued | 324,537 | 324,537 |
Additional Paid in Capital | 664,886 | 664,719 |
Accumulated deficit | 435,470 | 435,243 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1,424,893 | 1,424,499 |
Cumulative preferred stock of subsidiary | 59,784 | 59,784 |
Total common shareholders' equity | 1,484,677 | 1,484,283 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 4,952,409 | 4,918,408 |
Accounts receivable and unbilled revenue, allowance for doubtful accounts | $ 3,155 | $ 921 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 26,622 | $ 48,552 | $ 33,599 |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | 109,967 | 132,393 | 134,025 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 246,896 | 240,314 | 232,332 |
Amortization of deferred financing costs and debt discounts | 3,942 | 4,109 | 3,975 |
Deferred income taxes and investment tax credit adjustments - net | 2,854 | 15,277 | (15,735) |
Loss on early extinguishment of debt | 2,424 | 0 | 0 |
Allowance for equity funds used during construction | (4,574) | (3,486) | (8,477) |
Change in certain assets and liabilities: | |||
Accounts receivable | (4,103) | 6,469 | (9,944) |
Inventories | (15,240) | 13,574 | (3,652) |
Accounts payable | 20,322 | (3,047) | (3,675) |
Accrued and other current liabilities | (8,214) | 4,413 | (10,532) |
Accrued taxes payable/receivable | 6,695 | (15,698) | 3,180 |
Accrued interest | (3,601) | 544 | 458 |
Pension and other postretirement benefit expenses | (6,991) | 5,414 | (30,740) |
Short-term and long-term regulatory assets and liabilities | (13,390) | 921 | 76,647 |
Prepayments and other current assets | (578) | (2,119) | 4,711 |
Other - net | (340) | (7,357) | 1,089 |
Net cash provided by operating activities | 295,425 | 397,815 | 381,012 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Capital expenditures | (235,700) | (213,619) | (224,335) |
Project development costs | (2,401) | (2,269) | (1,127) |
Cost of removal and regulatory recoverable ARO payments | (37,786) | (21,838) | (29,543) |
Other | 118 | 278 | 1,053 |
Net cash used in investing activities | (275,769) | (237,448) | (253,952) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Borrowings under revolving credit facilities | 115,000 | 10,000 | 100,000 |
Repayments under revolving credit facilities | (40,000) | (10,000) | (248,000) |
Long-term borrowings, net of discount | 564,568 | 0 | 169,936 |
Retirement of long-term debt, including early payment premium | (562,135) | 0 | 0 |
Distributions to shareholders | (108,739) | (136,426) | (130,179) |
Dividends on preferred stock | (3,213) | (3,213) | (3,213) |
Deferred financing costs paid | (6,914) | 0 | (1,067) |
Payments for financed capital expenditures | (36) | (5,623) | (11,429) |
Other | (117) | (152) | (190) |
Net cash used in financing activities | (41,586) | (145,414) | (124,142) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | (21,930) | 14,953 | 2,918 |
Cash, cash equivalents and restricted cash at end of period | 20,502 | 48,152 | |
Cash paid during the period for: | |||
Interest (net of amount capitalized) | 122,938 | 117,457 | 90,975 |
Income taxes | 27,000 | 29,600 | 28,275 |
Non-cash investing activities: | |||
Accruals for capital expenditures | 54,360 | 35,471 | 47,553 |
Indianapolis Power And Light Company | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 17,951 | 42,589 | 27,234 |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | 144,040 | 157,277 | 157,363 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 246,896 | 240,314 | 232,332 |
Amortization of deferred financing costs and debt discounts | 2,335 | 2,262 | 2,011 |
Deferred income taxes and investment tax credit adjustments - net | 3,078 | 15,120 | (15,646) |
Allowance for equity funds used during construction | (4,574) | (3,486) | (8,477) |
Change in certain assets and liabilities: | |||
Accounts receivable | (4,071) | 6,504 | (10,167) |
Inventories | (15,240) | 13,574 | (3,652) |
Accounts payable | 20,621 | (2,816) | (4,080) |
Accrued and other current liabilities | (8,214) | 4,416 | (9,655) |
Accrued taxes payable/receivable | 18,012 | (15,437) | 3,180 |
Accrued interest | (518) | 546 | 826 |
Pension and other postretirement benefit expenses | (6,991) | 5,414 | (30,740) |
Short-term and long-term regulatory assets and liabilities | (13,390) | 921 | 76,647 |
Prepayments and other current assets | (569) | (2,119) | 7,279 |
Other - net | (6,174) | (7,053) | 582 |
Net cash provided by operating activities | 333,999 | 421,069 | 405,963 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Capital expenditures | (235,700) | (213,619) | (224,335) |
Project development costs | (2,401) | (2,269) | (1,127) |
Cost of removal and regulatory recoverable ARO payments | (37,786) | (21,838) | (29,543) |
Loans to Parent | (26,110) | 0 | 0 |
Loan repayments from parents | 20,000 | 0 | 0 |
Other | 118 | 0 | 0 |
Net cash used in investing activities | (281,879) | (237,726) | (255,005) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Borrowings under revolving credit facilities | 115,000 | 10,000 | 100,000 |
Repayments under revolving credit facilities | (40,000) | (10,000) | (248,000) |
Long-term borrowings, net of discount | 90,000 | 0 | 104,936 |
Retirement of long-term debt, including early payment premium | (90,000) | 0 | 0 |
Distributions to shareholders | (147,600) | (159,000) | (142,250) |
Dividends on preferred stock | (3,213) | (3,213) | (3,213) |
Proceeds from Contributions from Parent | 0 | 0 | 65,000 |
Deferred financing costs paid | (792) | 0 | 0 |
Payments for financed capital expenditures | (36) | (5,623) | (11,429) |
Other | (117) | (152) | (1,110) |
Net cash used in financing activities | (76,758) | (167,988) | (136,066) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | (24,638) | 15,355 | 14,892 |
Cash, cash equivalents and restricted cash at end of period | 17,946 | 42,189 | |
Cash paid during the period for: | |||
Interest (net of amount capitalized) | 84,869 | 88,546 | 61,310 |
Income taxes | 27,000 | 37,400 | 33,750 |
Non-cash investing activities: | |||
Accrual for Capital Expenditures | $ 54,360 | $ 35,471 | $ 47,553 |
Consolidated Statements Of Comm
Consolidated Statements Of Common Shareholders' Equity (Deficit) And Noncontrolling Interest - USD ($) $ in Thousands | Total | Paid In Capital [Member] | AOCI Attributable to Parent [Member] | Accumulated Deficit [Member] | Cumulative Preferred Stock Of Subsidiary [Member] | Indianapolis Power And Light Company | Indianapolis Power And Light CompanyCorporate Stocks - Common [Member] | Indianapolis Power And Light CompanyPaid In Capital [Member] | Indianapolis Power And Light CompanyAccumulated Deficit [Member] |
Other Comprehensive Income (Loss), Net of Tax | $ 0 | ||||||||
Beginning Balance at Dec. 31, 2017 | 572,276 | $ 597,467 | $ (25,191) | $ 59,784 | $ 1,366,473 | $ 324,537 | $ 599,157 | $ 442,779 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income applicable to common stock | 130,812 | 130,812 | 154,150 | ||||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 130,812 | ||||||||
Preferred Stock Dividends, Income Statement Impact | 3,213 | 3,213 | 3,213 | ||||||
Payments of Ordinary Dividends, Preferred Stock and Preference Stock | 3,213 | 3,213 | 3,213 | ||||||
Net income | 134,025 | 157,363 | 157,363 | ||||||
Dividends, Preferred Stock | 3,213 | ||||||||
Return of Capital | 0 | ||||||||
Cash dividends declared on common stock | (156,750) | (156,750) | |||||||
Distributions to AES | (130,179) | (130,179) | |||||||
Other | 357 | 357 | 356 | 356 | |||||
Ending Balance at Dec. 31, 2018 | 573,266 | 597,824 | (24,558) | 59,784 | 1,429,229 | 324,537 | 664,513 | 440,179 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Proceeds from Contributions from Parent | 65,000 | 65,000 | |||||||
Other Comprehensive Income (Loss), Net of Tax | (19,750) | $ (19,750) | |||||||
Net income applicable to common stock | 129,180 | 129,180 | 154,064 | ||||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 109,430 | ||||||||
Preferred Stock Dividends, Income Statement Impact | 3,213 | 3,213 | 3,213 | ||||||
Payments of Ordinary Dividends, Preferred Stock and Preference Stock | 3,213 | 3,213 | 3,213 | ||||||
Net income | 132,393 | 157,277 | 157,277 | ||||||
Dividends, Preferred Stock | 3,213 | ||||||||
Return of Capital | (7,246) | ||||||||
Cash dividends declared on common stock | (159,000) | (159,000) | |||||||
Distributions to AES | (136,426) | (129,180) | |||||||
Other | 206 | 206 | 206 | 206 | |||||
Ending Balance at Dec. 31, 2019 | 546,476 | 590,784 | (19,750) | (24,558) | 59,784 | 1,424,499 | 324,537 | 664,719 | 435,243 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Proceeds from Contributions from Parent | 0 | 0 | |||||||
Other Comprehensive Income (Loss), Net of Tax | (23,670) | (23,670) | |||||||
Net income applicable to common stock | 106,754 | 106,754 | 140,827 | ||||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 83,084 | ||||||||
Preferred Stock Dividends, Income Statement Impact | 3,213 | 3,213 | 3,213 | ||||||
Payments of Ordinary Dividends, Preferred Stock and Preference Stock | 3,213 | 3,213 | 3,213 | ||||||
Net income | 109,967 | 144,040 | 144,040 | ||||||
Dividends, Preferred Stock | 3,200 | 3,213 | |||||||
Return of Capital | (1,985) | ||||||||
Cash dividends declared on common stock | (140,600) | (140,600) | |||||||
Distributions to AES | (108,739) | (106,754) | |||||||
Other | 167 | 167 | 167 | 167 | |||||
Ending Balance at Dec. 31, 2020 | $ 520,988 | $ 588,966 | $ (43,420) | $ (24,558) | $ 59,784 | 1,424,893 | $ 324,537 | 664,886 | $ 435,470 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Proceeds from Contributions from Parent | $ 0 | $ 0 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income Statement - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net Income (Loss) Available to Common Stockholders, Basic | $ 106,754 | $ 129,180 | $ 130,812 |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | 8,876 | 6,810 | 0 |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | (27,779) | (19,750) | 0 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax | 1,313 | 0 | 0 |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | (23,670) | (19,750) | 0 |
Other Comprehensive Income (Loss), Net of Tax | (23,670) | (19,750) | 0 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 83,084 | 109,430 | 130,812 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | $ 4,109 | $ 0 | $ 0 |
Overview and Summary of Signifi
Overview and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Entity Information [Line Items] | |
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 approximately 512,000 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, and IPL has plans to retire approximately 630 MW of coal-fired generation at Petersburg Units 1 and 2 in 2021 and 2023, respectively (for further discussion, see Note 2, " Regulatory Matters - IRP Filing "). The second largest station, Harding Street, uses natural gas and fuel oil to power combustion turbines. In addition, IPL operates a 20 MW battery energy storage unit at this location, which provides frequency response. The third station, Eagle Valley, is a CCGT natural gas plant. IPL took operational control and commenced commercial operations of this CCGT plant in April 2018. The fourth station, Georgetown, is a small peaking station that uses natural gas to power combustion turbines. As of December 31, 2020, IPL’s net electric generation capacity for winter is 3,705 MW and net summer capacity is 3,560 MW. IPALCO’s other direct subsidiary is Mid-America. Mid-America is the holding company for IPALCO’s unregulated activities, which have not been material to the financial statements in the periods covered by this report. IPALCO’s regulated business is conducted through IPL. IPALCO has two business segments: utility and nonutility. The utility segment consists of the operations of IPL and everything else is included in the nonutility segment. Principles of Consolidation IPALCO’s consolidated financial statements are prepared in accordance with GAAP and in conjunction with the rules and regulations of the SEC. The consolidated financial statements include the accounts of IPALCO, its regulated utility subsidiary, IPL, and its unregulated subsidiary, Mid-America. All intercompany items have been eliminated in consolidation. Certain costs for shared resources amongst IPL and IPALCO, such as labor and benefits, are allocated to each entity based on allocation methodologies that management believes to be reasonable. We have evaluated subsequent events through the date this report is issued. 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 management is required to make. Actual results may differ from those estimates. Regulatory Accounting The retail utility operations of IPL are subject to the jurisdiction of the IURC. IPL’s wholesale power transactions are subject to the jurisdiction of the FERC. These agencies regulate IPL’s utility business operations, tariffs, accounting, depreciation allowances, services, issuances of securities and the sale and acquisition of utility properties. The financial statements of IPL are based on GAAP, including the provisions of FASB ASC 980 “Regulated Operations,” which gives recognition to the ratemaking and accounting practices of these agencies. See also Note 2, “Regulatory Matters - Regulatory Assets and Liabilities” for a discussion of specific regulatory assets and liabilities. Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents are stated at cost, which approximates fair value. All highly liquid short-term investments with original maturities of three months or less are considered cash equivalents. Restricted cash includes cash which is restricted as to withdrawal or usage. The nature of the restrictions includes restrictions imposed by agreements related to deposits held as collateral. The following table provides a summary of cash, cash equivalents and restricted cash amounts as shown on the Consolidated Statements of Cash Flows: As of December 31, 2020 2019 (In Thousands) Cash, cash equivalents and restricted cash Cash and cash equivalents $ 20,502 $ 48,152 Restricted cash 6,120 400 Total cash, cash equivalents and restricted cash $ 26,622 $ 48,552 Revenues and Accounts Receivable Revenues related to the sale of energy are generally recognized when service is rendered or energy is delivered to customers. However, the determination of the energy sales to individual customers is based on the reading of their meters, which occurs on a systematic basis throughout the month. At the end of each month, amounts of energy delivered to certain customers since the date of the last meter reading are estimated and the corresponding unbilled revenue is accrued. In making its estimates of unbilled revenue, IPL uses complex models that consider various factors including daily generation volumes; known amounts of energy usage by nearly all residential, commercial and industrial customers; estimated line losses; and estimated customer rates based on prior period billings. Given the use of these models, and that customers are billed on a monthly cycle, we believe it is unlikely that materially different results will occur in future periods when revenue is billed. An allowance for potential credit losses is maintained and amounts are written off when normal collection efforts have been exhausted. Our provision for expected credit losses included in “Operating expenses - Operation and maintenance” on the accompanying Consolidated Statements of Operations was $4.8 million , $4.3 million and $5.9 million for the years ended December 31, 2020, 2019 and 2018, respectively. IPL’s basic rates include a provision for fuel costs as established in IPL’s most recent rate proceeding, which last adjusted IPL’s rates in December 2018. IPL is permitted to recover actual costs of purchased power and fuel consumed, subject to certain restrictions. This is accomplished through quarterly FAC proceedings, in which IPL estimates the amount of fuel and purchased power costs in future periods. Through these proceedings, IPL is also permitted to recover, in future rates, underestimated fuel and purchased power costs from prior periods, subject to certain restrictions, and therefore the over or underestimated costs are deferred or accrued and amortized into fuel expense in the same period that IPL’s rates are adjusted. See also Note 2, “ Regulatory Matters ” for a discussion of other costs that IPL is permitted to recover through periodic rate adjustment proceedings and the status of current rate adjustment proceedings. In addition, we are one of many transmission system owner members of MISO, a regional transmission organization which maintains functional control over the combined transmission systems of its members and manages one of the largest energy markets in the U.S. See Note 13, " Revenue " for additional information of MISO sales and other revenue streams. The following table summarizes our accounts receivable balances at December 31: As of December 31, 2020 2019 (In Thousands) Accounts receivable, net Customer receivables $ 91,335 $ 90,747 Unbilled revenue 72,334 65,822 Amounts due from related parties 490 2,717 Other 4,189 2,725 Provision for uncollectible accounts (3,155) (921) Total accounts receivable, net $ 165,193 $ 161,090 The following table is a rollforward of our allowance for credit losses related to the accounts receivable balances for the year ended December 31, 2020 (in Thousands): Beginning Allowance Balance at January 1, 2020 Current Period Provision Write-offs Charged Against Allowances Recoveries Collected Ending Allowance Balance at Allowance for credit losses $ 921 $ 5,861 $ (5,473) $ 1,846 $ 3,155 The allowance for credit losses primarily relates to utility customer receivables, including unbilled amounts. Expected credit loss estimates are developed by disaggregating customers into those with similar credit risk characteristics and using historical credit loss experience. In addition, we also consider how current and future economic conditions are expected to impact collectability, as applicable, including the economic impacts of the COVID-19 pandemic on our receivable balance as of December 31, 2020. Amounts are written off when reasonable collections efforts have been exhausted. An Executive Order issued by the Governor of Indiana on March 19, 2020 and extended by the IURC prohibited electric utilities, including us, from discontinuing electric utility service to customers through August 14, 2020 due to the economic impacts of COVID-19. This order along with the economic impacts of COVID-19 has resulted in an increase in past due customer receivable balances, and thus the current period provision and the allowance for credit losses has increased during 2020. Please see additional discussion in Note 2, " Regulatory Matters - IURC COVID-19 Order” a nd Note 15, " Risks and Uncertainties - COVID-19 Pandemic ." Inventories We maintain coal, fuel oil, materials and supplies inventories for use in the production of electricity. These inventories are accounted for at the lower of cost or net realizable value, using the average cost. The following table summarizes our inventories balances at December 31: As of December 31, 2020 2019 (In Thousands) Inventories Fuel $ 36,953 $ 26,907 Materials and supplies, net 58,553 56,662 Total inventories $ 95,506 $ 83,569 Property, Plant and Equipment Property, plant and equipment is stated at original cost as defined for regulatory purposes. The cost of additions to property, plant and equipment and replacements of retirement units of property are charged to plant accounts. Units of property replaced or abandoned in the ordinary course of business are retired from the plant accounts at cost; such amounts, less salvage, are charged to accumulated depreciation. Depreciation is computed by the straight-line method based on functional rates approved by the IURC and averaged 3.7%, 3.7%, and 4.2% during 2020, 2019 and 2018, respectively. Depreciation expense was $232.8 million, $228.2 million, and $235.2 million for the years ended December 31, 2020, 2019 and 2018, respectively. "Depreciation and amortization" expense on the accompanying Consolidated Statements of Operations is presented net of regulatory deferrals of depreciation expense and also includes amortization of intangible assets and amortization of previously deferred regulatory costs. Allowance For Funds Used During Construction In accordance with the Uniform System of Accounts prescribed by FERC, IPL capitalizes an allowance for the net cost of funds (interest on borrowed funds and a reasonable rate of return on equity funds) used for construction purposes during the period of construction with a corresponding credit to income. IPL capitalized amounts using pretax composite rates of 6.9%, 6.9% and 6.4% during 2020, 2019 and 2018, respectively. Impairment of Long-lived Assets GAAP requires that we test long-lived assets for impairment when indicators of impairment exist. If an asset is deemed to be impaired, we are required to write down the asset to its fair value with a charge to current earnings. The net book value of our property, plant, and equipment was $4.1 billion as of December 31, 2020 and 2019. In December 2020, IPL reclassified net property, plant and equipment of $74.5 million associated with the probable Petersburg Unit 1 retirement to long-term regulatory assets (for further discussion, see Note 2, “Regulatory Matters - IRP Filing” and Note 3 , "Property, Plant and Equipment" ) . We do not believe any of these assets are currently impaired. In making this assessment, we consider such factors as: the overall condition and generating and distribution capacity of the assets; the expected ability to recover additional expenditures in the assets; the anticipated demand and relative pricing of retail electricity in our service territory and wholesale electricity in the region; and the cost of fuel. Intangible Assets Intangible assets primarily include capitalized software of $144.5 million and $139.6 million and its corresponding accumulated amortization of $85.3 million and $74.7 million, as of December 31, 2020 and 2019, respectively. Amortization expense was $10.6 million, $7.5 million and $5.5 million for the years ended December 31, 2020, 2019 and 2018, respectively. The estimated amortization expense of this capitalized software is approximately $59.0 million over the next 5 years ($11.8 million in 2021, $11.8 million in 2022, $11.8 million in 2023, $11.8 million in 2024 and $11.8 million in 2025). Implementation Costs Related to Software as a Service IPALCO has recorded prepayments for implementation costs related to software as a service in support of utility customer services of $8.8 million as of December 31, 2020, which are recorded within " Other non-current assets " on the accompanying Consolidated Balance Sheets. Contingencies IPALCO accrues for loss contingencies when the amount of the loss is probable and estimable. We are subject to various environmental regulations and are involved in certain legal proceedings. If IPL’s actual environmental and/or legal obligations are different from our estimates, the recognition of the actual amounts may have a material impact on our results of operations, financial condition and cash flows; although that has not been the case during the periods covered by this report. As of December 31, 2020 and 2019, total loss contingencies accrued were $15.4 million and $4.5 million, respectively, which were included in “Accrued and Other Current Liabilities” and " Other Non-Current Liabilities ", respectively, on the accompanying Consolidated Balance Sheets. Concentrations of Risk Substantially all of IPL’s customers are located within the Indianapolis area. Approximately 69% of IPL’s employees are covered by collective bargaining agreements in two bargaining units: a physical unit and a clerical-technical unit. IPL’s contract with the physical unit expires on December 6, 2021, and the contract with the clerical-technical unit expires February 13, 2023. Additionally, IPL has long-term coal contracts with two suppliers, and substantially all of the coal is currently mined in the state of Indiana. Financial Derivatives All derivatives are recognized as either assets or liabilities in the balance sheets and are measured at fair value. Changes in the fair value are recorded in earnings unless the derivative is designated as a cash flow hedge of a forecasted transaction or it qualifies for the normal purchases and sales exception. IPL has contracts involving the physical delivery of energy and fuel. Because these contracts qualify for the normal purchases and normal sales scope exception in ASC 815, IPL has elected to account for them as accrual contracts, which are not adjusted for changes in fair value. Additionally, we use interest rate hedges to manage the interest rate risk of our variable rate debt. We use cash flow hedge accounting when the hedge or a portion of the hedge is deemed to be highly effective, which results in changes in the fair value being recorded within accumulated other comprehensive income, a component of shareholders' equity. We have elected not to offset net derivative positions in the Financial Statements. Accordingly, we do not offset such derivative positions against the fair value of amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral under master netting agreements. See Note 5, “Derivative Instruments and Hedging Activities” for additional information. Accumulated Other Comprehensive Income / (Loss) The amounts reclassified out of Accumulated Other Comprehensive Loss by component during the years ended December 31, 2020, 2019 and 2018 are as follows (in thousands): Details about Accumulated Other Comprehensive Loss components Affected line item in the Condensed Consolidated Statements of Operations For the Years Ended December 31, 2020 2019 2018 Gains and losses on cash flow hedges (Note 5): Interest expense $ (5,422) $ — $ — Income tax expense 1,313 — — Total reclassifications for the period, net of income taxes $ (4,109) $ — $ — The changes in the components of Accumulated Other Comprehensive Income/(Loss) during the years ended December 31, 2020, 2019, and 2018 are as follows (in thousands): For the Years Ended December 31, 2020 2019 2018 Gains and losses on cash flow hedges (Note 5): Balance at January 1 $ (19,750) $ — $ — Other comprehensive loss before reclassifications (27,779) (19,750) — Amounts reclassified from AOCI to earnings 4,109 — — Balance at December 31 $ (43,420) $ (19,750) $ — Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of the existing assets and liabilities, and their respective income tax bases. The Company establishes a valuation allowance when it is more likely than not that all or a portion of a deferred tax asset will not be realized. The Company’s tax positions are evaluated under a more likely than not recognition threshold and measurement analysis before they are recognized for financial statement reporting. Uncertain tax positions have been classified as noncurrent income tax liabilities unless expected to be paid within one year. The Company’s policy for interest and penalties is to recognize interest and penalties as a component of the provision for income taxes in the Consolidated Statements of Operations. Income tax assets or liabilities, which are included in allowable costs for ratemaking purposes in future years, are recorded as regulatory assets or liabilities with a corresponding deferred tax liability or asset. Investment tax credits that reduced federal income taxes in the years they arose have been deferred and are being amortized to income over the useful lives of the properties in accordance with regulatory treatment. See Note 2, " Regulatory Matters " for additional information. IPALCO and its subsidiaries file U.S. federal income tax returns as part of the consolidated U.S. income tax return filed by AES. The consolidated tax liability is allocated to each subsidiary based on the separate return method which is specified in our tax allocation agreement and which provides a consistent, systematic and rational approach. See Note 8, " Income Taxes " for additional information. Pension and Postretirement Benefits We recognize in our Consolidated Balance Sheets an asset or liability reflecting the funded status of pension and other postretirement plans with current-year changes in the funded status, that would otherwise be recognized in AOCI, recorded as a regulatory asset as this can be recovered through future rates. All plan assets are recorded at fair value. We follow the measurement date provisions of the accounting guidance, which require a year-end measurement date of plan assets and obligations for all defined benefit plans. We account for and disclose pension and postretirement benefits in accordance with the provisions of GAAP relating to the accounting for pension and other postretirement plans. These GAAP provisions require the use of assumptions, such as the discount rate for liabilities and long-term rate of return on assets, in determining the obligations, annual cost and funding requirements of the plans. Consistent with the requirements of ASC 715, we apply a disaggregated discount rate approach for determining service cost and interest cost for our defined benefit pension plans and postretirement plans. See Note 9, " Benefit Plans " for more information. Repair and Maintenance Costs Repair and maintenance costs are expensed as incurred. Per Share Data IPALCO is owned by AES U.S. Investments and CDPQ. IPALCO does not report earnings on a per-share basis. New Accounting Pronouncements Adopted in 2020 The following table provides a brief description of recent accounting pronouncements that had an impact on the Company’s Financial Statements. Accounting pronouncements not listed below were assessed and determined to be either not applicable or did not have a material impact on the Company’s Financial Statements. New Accounting Standards Adopted ASU Number and Name Description Date of Adoption Effect on the Financial Statements upon adoption 2016-13, 2018-19, 2019-04, 2019-05, 2019-10, 2019-11, 2020-02, 2020-03, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments See discussion of the ASU below. January 1, 2020 See impact upon adoption of the standard below. ASC 326 - Financial Instruments - Credit Losses On January 1, 2020, the Company adopted ASC 326 Financial Instruments - Credit Losses and its subsequent corresponding updates ("ASC 326"). The new standard updates the impairment model for financial assets measured at amortized cost, known as the Current Expected Credit Loss ("CECL") model. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, entities are required to use a new forward-looking "expected loss" model that generally results in the earlier recognition of an allowance for credit losses. For available-for-sale debt securities with unrealized losses, entities measure credit losses as it was done under previous GAAP, except that unrealized losses due to credit-related factors are now recognized as an allowance on the balance sheet with a corresponding adjustment to earnings in the income statement. The Company applied the modified retrospective method of adoption for ASC 326. Under this transition method, the Company applied the transition provisions starting at the date of adoption. The CECL model primarily impacts the calculation of the Company's expected credit losses in gross customer trade accounts receivable. The adoption of ASC 326 and the application of CECL on our trade accounts receivable did not have a material impact on our Financial Statements. New Accounting Pronouncements Issued But Not Yet Effective The following table provides a brief description of recent accounting pronouncements that could have a material impact on the Company’s Financial Statements once adopted. Accounting pronouncements not listed below were assessed and determined to be either not applicable or are expected to have no material impact on the Company’s Financial Statements. New Accounting Standards Issued But Not Yet Effective ASU Number and Name Description Date of Adoption Effect on the Financial Statements upon adoption 2020-04 and 2021-01, Reference Rate Form (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting The amendments in these updates provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions that reference to LIBOR or another reference rate expected to be discontinued by reference rate reform, and clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. These amendments are effective for a limited period of time (March 12, 2020 - December 21, 2022). March 12, 2020 - December 31, 2022 The Company is currently evaluating the impact of adopting the standard on the Financial Statements. |
Indianapolis Power And Light Company | |
Entity Information [Line Items] | |
Overview and Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES IPL was incorporated under the laws of the state of Indiana in 1926. All of the outstanding common stock of IPL is owned by IPALCO. IPALCO, acquired by AES in March 2001, is owned by AES U.S. Investments and CDPQ. AES U.S. Investments is owned by AES (85%) and CDPQ (15%). IPL is engaged primarily in generating, transmitting, distributing and selling of electric energy to approximately 512,000 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, and IPL has plans to retire approximately 630 MW of coal-fired generation at Petersburg Units 1 and 2 in 2021 and 2023, respectively (for further discussion, see Note 2, " Regulatory Matters - IRP Filing "). The second largest station, Harding Street, uses natural gas and fuel oil to power combustion turbines. In addition, IPL operates a 20 MW battery energy storage unit at this location, which provides frequency response. The third station, Eagle Valley, is a CCGT natural gas plant. IPL took operational control and commenced commercial operations of this CCGT plant in April 2018. The fourth station, Georgetown, is a small peaking station that uses natural gas to power combustion turbines. As of December 31, 2020, IPL’s net electric generation capacity for winter is 3,705 MW and net summer capacity is 3,560 MW. Principles of Consolidation IPL’s consolidated financial statements are prepared in accordance with GAAP and in conjunction with the rules and regulations of the SEC. The consolidated financial statements include the accounts of IPL and its unregulated subsidiary, IPL Funding Corporation, which was dissolved in 2018 and was immaterial to the consolidated financial statements in the periods covered by this report. All intercompany items have been eliminated in consolidation. Certain costs for shared resources amongst IPL and IPALCO, such as labor and benefits, are allocated to each entity based on allocation methodologies that management believes to be reasonable. We have evaluated subsequent events through the date this report is issued. 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 management is required to make. Actual results may differ from those estimates. Regulatory Accounting The retail utility operations of IPL are subject to the jurisdiction of the IURC. IPL’s wholesale power transactions are subject to the jurisdiction of the FERC. These agencies regulate IPL’s utility business operations, tariffs, accounting, depreciation allowances, services, issuances of securities and the sale and acquisition of utility properties. The financial statements of IPL are based on GAAP, including the provisions of FASB ASC 980 “Regulated Operations,” which gives recognition to the ratemaking and accounting practices of these agencies. See also Note 2, “Regulatory Matters - Regulatory Assets and Liabilities” for a discussion of specific regulatory assets and liabilities. Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents are stated at cost, which approximates fair value. All highly liquid short-term investments with original maturities of three months or less are considered cash equivalents. Restricted cash includes cash which is restricted as to withdrawal or usage. The nature of the restrictions includes restrictions imposed by agreements related to deposits held as collateral. The following table provides a summary of cash, cash equivalents and restricted cash amounts as shown on the Consolidated Statements of Cash Flows: As of December 31, 2020 2019 (In Thousands) Cash, cash equivalents and restricted cash Cash and cash equivalents $ 17,946 $ 42,189 Restricted cash 5 400 Total cash, cash equivalents and restricted cash $ 17,951 $ 42,589 Revenues and Accounts Receivable Revenues related to the sale of energy are generally recognized when service is rendered or energy is delivered to customers. However, the determination of the energy sales to individual customers is based on the reading of their meters, which occurs on a systematic basis throughout the month. At the end of each month, amounts of energy delivered to certain customers since the date of the last meter reading are estimated and the corresponding unbilled revenue is accrued. In making its estimates of unbilled revenue, IPL uses complex models that consider various factors including daily generation volumes; known amounts of energy usage by nearly all residential, commercial and industrial customers; estimated line losses; and estimated customer rates based on prior period billings. Given the use of these models, and that customers are billed on a monthly cycle, we believe it is unlikely that materially different results will occur in future periods when revenue is billed. An allowance for potential credit losses is maintained and amounts are written off when normal collection efforts have been exhausted. IPL’s provision for expected credit losses included in “ Operating expenses - Operation and maintenance” on the accompanying Consolidated Statements of Operations was $4.8 million, $4.3 million and $5.9 million for the years ended December 31, 2020, 2019 and 2018, respectively. IPL’s basic rates include a provision for fuel costs as established in IPL’s most recent rate proceeding, which last adjusted IPL’s rates in December 2018. IPL is permitted to recover actual costs of purchased power and fuel consumed, subject to certain restrictions. This is accomplished through quarterly FAC proceedings, in which IPL estimates the amount of fuel and purchased power costs in future periods. Through these proceedings, IPL is also permitted to recover, in future rates, underestimated fuel and purchased power costs from prior periods, subject to certain restrictions, and therefore the over or underestimated costs are deferred or accrued and amortized into fuel expense in the same period that IPL’s rates are adjusted. See also Note 2, “ Regulatory Matters ” for a discussion of other costs that IPL is permitted to recover through periodic rate adjustment proceedings and the status of current rate adjustment proceedings. In addition, IPL is one of many transmission system owner members of MISO, a regional transmission organization which maintains functional control over the combined transmission systems of its members and manages one of the largest energy markets in the U.S. See Note 13, " Revenue " for additional information of MISO sales and other revenue streams. The following table summarizes our accounts receivable balances at December 31: As of December 31, 2020 2019 (In Thousands) Accounts receivable, net Customer receivables $ 91,335 $ 90,747 Unbilled revenue 72,334 65,822 Amounts due from related parties 734 2,992 Other 4,187 2,725 Provision for uncollectible accounts (3,155) (921) Total accounts receivable, net $ 165,435 $ 161,365 The following table is a rollforward of our allowance for credit losses related to the accounts receivable balances for the year ended December 31, 2020 (in Thousands): Beginning Allowance Balance at January 1, 2020 Current Period Provision Write-offs Charged Against Allowances Recoveries Collected Ending Allowance Balance at Allowance for credit losses $ 921 $ 5,861 $ (5,473) $ 1,846 $ 3,155 The allowance for credit losses primarily relates to utility customer receivables, including unbilled amounts. Expected credit loss estimates are developed by disaggregating customers into those with similar credit risk characteristics and using historical credit loss experience. In addition, we also consider how current and future economic conditions are expected to impact collectability, as applicable, including the economic impacts of the COVID-19 pandemic on our receivable balance as of December 31, 2020. Amounts are written off when reasonable collections efforts have been exhausted. An Executive Order issued by the Governor of Indiana on March 19, 2020 and extended by the IURC prohibited electric utilities, including us, from discontinuing electric utility service to customers through August 14, 2020 due to the economic impacts of COVID-19. This order along with the economic impacts of COVID-19 has resulted in an increase in past due customer receivable balances, and thus the current period provision and the allowance for credit losses has increased during 2020. Please see additional discussion in Note 2, " Regulatory Matters - IURC COVID-19 Order” a nd Note 15, " Risks and Uncertainties - COVID-19 Pandemic ." Inventories IPL maintains coal, fuel oil, materials and supplies inventories for use in the production of electricity. These inventories are accounted for at the lower of cost or net realizable value, using the average cost. The following table summarizes our inventories balances at December 31: As of December 31, 2020 2019 (In Thousands) Inventories Fuel $ 36,953 $ 26,907 Materials and supplies, net 58,553 56,662 Total inventories $ 95,506 $ 83,569 Property, Plant and Equipment Property, plant and equipment is stated at original cost as defined for regulatory purposes. The cost of additions to property, plant and equipment and replacements of retirement units of property are charged to plant accounts. Units of property replaced or abandoned in the ordinary course of business are retired from the plant accounts at cost; such amounts, less salvage, are charged to accumulated depreciation. Depreciation is computed by the straight-line method based on functional rates approved by the IURC and averaged 3.7%, 3.7%, and 4.2% during 2020, 2019 and 2018, respectively. Depreciation expense was $232.8 million, $228.2 million, and $235.2 million for the years ended December 31, 2020, 2019 and 2018, respectively. "Depreciation and amortization" expense on the accompanying Consolidated Statements of Operations is presented net of regulatory deferrals of depreciation expense and also includes amortization of intangible assets and amortization of previously deferred regulatory costs. Allowance For Funds Used During Construction In accordance with the Uniform System of Accounts prescribed by FERC, IPL capitalizes an allowance for the net cost of funds (interest on borrowed funds and a reasonable rate of return on equity funds) used for construction purposes during the period of construction with a corresponding credit to income. IPL capitalized amounts using pretax composite rates of 6.9%, 6.9% and 6.4% during 2020, 2019 and 2018, respectively. Impairment of Long-lived Assets GAAP requires that IPL test long-lived assets for impairment when indicators of impairment exist. If an asset is deemed to be impaired, IPL is required to write down the asset to its fair value with a charge to current earnings. The net book value of IPL’s property, plant, and equipment was $4.1 billion as of December 31, 2020 and 2019. In December 2020, IPL reclassified net property, plant and equipment of $74.5 million associated with the probable Petersburg Unit 1 retirement to long-term regulatory assets (for further discussion, see Note 2, “Regulatory Matters - IRP Filing” and Note 3 , "Property, Plant and Equipment" ) . IPL does not believe any of these assets are currently impaired. In making this assessment, IPL considers such factors as: the overall condition and generating and distribution capacity of the assets; the expected ability to recover additional expenditures in the assets; the anticipated demand and relative pricing of retail electricity in its service territory and wholesale electricity in the region; and the cost of fuel. Intangible Assets Intangible assets primarily include capitalized software of $144.5 million and $139.6 million and its corresponding accumulated amortization of $85.3 million and $74.7 million, as of December 31, 2020 and 2019, respectively. Amortization expense was $10.6 million, $7.5 million and $5.5 million for the years ended December 31, 2020, 2019 and 2018, respectively. The estimated amortization expense of this capitalized software is approximately $59.0 million over the next 5 years ($11.8 million in 2021, $11.8 million in 2022, $11.8 million in 2023, $11.8 million in 2024 and $11.8 million in 2025). Implementation Costs Related to Software as a Service IPL has recorded prepayments for implementation costs related to software as a service in support of utility customer services of $8.8 million as of December 31, 2020, which are recorded within " Other non-current assets " on the accompanying Consolidated Balance Sheets. Contingencies IPL accrues for loss contingencies when the amount of the loss is probable and estimable. IPL is subject to various environmental regulations and is involved in certain legal proceedings. If IPL’s actual environmental and/or legal obligations are different from our estimates, the recognition of the actual amounts may have a material impact on our results of operations, financial condition and cash flows; although that has not been the case during the periods covered by this report. As of December 31, 2020 and 2019, total loss contingencies accrued were $15.4 million and $4.5 million, respectively, which were included in “ Accrued and Other Current Liabilities” and " Other Non-Current Liabilities ", respectively, on the accompanying Consolidated Balance Sheets. Concentrations of Risk Substantially all of IPL’s customers are located within the Indianapolis area. Approximately 69% of IPL’s employees are covered by collective bargaining agreements in two bargaining units: a physical unit and a clerical-technical unit. IPL’s contract with the physical unit expires on December 6, 2021, and the contract with the clerical-technical unit expires February 13, 2023. Additionally, IPL has long-term coal contracts with two suppliers, and substantially all of the coal is currently mined in the state of Indiana. Financial Derivatives All derivatives are recognized as either assets or liabilities in the balance sheets and are measured at fair value. Changes in the fair value are recorded in earnings unless the derivative is designated as a cash flow hedge of a forecasted transaction or it qualifies for the normal purchases and sales exception. IPL has contracts involving the physical delivery of energy and fuel. Because these contracts qualify for the normal purchases and normal sales scope exception in ASC 815, IPL has elected to account for them as accrual contracts, which are not adjusted for changes in fair value. Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of the existing assets and liabilities, and their respective income tax bases. IPL establishes a valuation allowance when it is more likely than not that all or a portion of a deferred tax asset will not be realized. IPL’s tax positions are evaluated under a more likely than not recognition threshold and measurement analysis before they are recognized for financial statement reporting. Uncertain tax positions have been classified as noncurrent income tax liabilities unless expected to be paid within one year. IPL’s policy for interest and penalties is to recognize interest and penalties as a component of the provision for income taxes in the Consolidated Statements of Operations. Income tax assets or liabilities which are included in allowable costs for ratemaking purposes in future years are recorded as regulatory assets or liabilities with a corresponding deferred tax liability or asset. Investment tax credits that reduced federal income taxes in the years they arose have been deferred and are being amortized to income over the useful lives of the properties in accordance with regulatory treatment. See Note 2, " Regulatory Matters " for additional information. IPL and its subsidiary file U.S. federal income tax returns as part of the consolidated U.S. income tax return filed by AES. The consolidated tax liability is allocated to each subsidiary based on the separate return method which is specified in our tax allocation agreement and which provides a consistent, systematic and rational approach. See Note 8, " Income Taxes " for additional information. Pension and Postretirement Benefits IPL recognizes in its Consolidated Balance Sheets an asset or liability reflecting the funded status of pension and other postretirement plans with current-year changes in the funded status, that would otherwise be recognized in AOCI, recorded as a regulatory asset as this can be recovered through future rates. All plan assets are recorded at fair value. IPL follows the measurement date provisions of the accounting guidance, which require a year-end measurement date of plan assets and obligations for all defined benefit plans. IPL accounts for and discloses pension and postretirement benefits in accordance with the provisions of GAAP relating to the accounting for pension and other postretirement plans. These GAAP provisions require the use of assumptions, such as the discount rate for liabilities and long-term rate of return on assets, in determining the obligations, annual cost and funding requirements of the plans. Consistent with the requirements of ASC 715, IPL applies a disaggregated discount rate approach for determining service cost and interest cost for its defined benefit pension plans and postretirement plans. See Note 9, " Benefit Plans " for more information. Repair and Maintenance Costs Repair and maintenance costs are expensed as incurred. Per Share Data IPALCO owns all of the outstanding common stock of IPL. IPL does not report earnings on a per-share basis. New Accounting Pronouncements Adopted in 2020 The following table provides a brief description of recent accounting pronouncements that had an impact on the Company’s Financial Statements. Accounting pronouncements not listed below were assessed and determined to be either not applicable or did not have a material impact on the Company’s Financial Statements. New Accounting Standards Adopted ASU Number and Name Description Date of Adoption Effect on the Financial Statements upon adoption 2016-13, 2018-19, 2019-04, 2019-05, 2019-10, 2019-11, 2020-02, 2020-03, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments See discussion of the ASU below. January 1, 2020 See impact upon adoption of the standard below. ASC 326 - Financial Instruments - Credit Losses On January 1, 2020, the Company adopted ASC 326 Financial Instruments - Credit Losses and its subsequent corresponding updates ("ASC 326"). The new standard updates the impairment model for financial assets measured at amortized cost, known as the Current Expected Credit Loss ("CECL") model. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, entities are required to use a new forward-looking "expected loss" model that generally results in the earlier recognition of an allowance for credit losses. For available-for-sale debt securities with unrealized losses, entities measure credit losses as it was done under previous GAAP, except that unrealized losses due to credit-related factors are now recognized as an allowance on the balance sheet with a corresponding adjustment to earnings in the income statement. The Company applied the modified retrospective method of adoption for ASC 326. Under this transition method, the Company applied the transition provisions starting at the date of adoption. The CECL model primarily impacts the calculation of the Company's expected credit losses in gross customer trade accounts receivable. The adoption of ASC 326 and the application of CECL on our trade accounts receivable did not have a material impact on IPL's Financial Statements. New Accounting Pronouncements Issued But Not Yet Effective The following table provides a brief description of recent accounting pronouncements that could have a material impact on the Company’s Financial Statements once adopted. Accounting pronouncements not listed below were assessed and determined to be either not applicable or are expected to have no material impact on the Company’s Financial Statements. New Accounting Standards Issued But Not Yet Effective ASU Number and Name Description Date of Adoption Effect on the Financial Statements upon adoption 2020-04 and 2021-01, Reference Rate Form (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting The amendments in these updates provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions that reference to LIBOR or another reference rate expected to be discontinued by reference rate reform, and clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. These amendments are effective for a limited period of time (March 12, 2020 - December 21, 2022). March 12, 2020 - December 31, 2022 The Company is currently evaluating the impact of adopting the standard on the Financial Statements. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Entity Information [Line Items] | ||
Utility Plant In Service | The original cost of property, plant and equipment segregated by functional classifications follows: As of December 31, 2020 2019 (In Thousands) Production $ 4,191,223 $ 4,154,919 Transmission 408,380 398,903 Distribution 1,671,861 1,594,208 General plant 258,931 250,582 Total property, plant and equipment $ 6,530,395 $ 6,398,612 In December 2020, IPL reclassified net property, plant and equipment of $74.5 million associated with the Petersburg Unit 1 retirement to long-term regulatory assets by crediting accumulated depreciation (for further discussion, see Note 2, “ Regulatory Matters - IRP Filing ”). Substantially all of IPL’s property is subject to a $1,803.8 million direct first mortgage lien, as of December 31, 2020, securing IPL’s first mortgage bonds. Total non-contractually or legally required accrued removal costs of utility plant in service at December 31, 2020 and 2019 were $818.0 million and $788.3 million, respectively; and total contractually or legally required removal costs of property, plant and equipment at December 31, 2020 and 2019 were $195.2 million and $204.2 million, respectively. Please see “ARO” below for further information. ARO 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 relates primarily to environmental issues involving asbestos-containing materials, ash ponds, landfills and miscellaneous contaminants associated with its generating plants, transmission system and distribution system. The following is a roll forward of the ARO legal liability year end balances: 2020 2019 (In Thousands) Balance as of January 1 $ 204,219 $ 129,451 Liabilities settled (18,302) (9,891) Revisions to cash flow and timing estimates 1,120 78,153 Accretion expense 8,199 6,506 Balance as of December 31 $ 195,236 $ 204,219 | |
Indianapolis Power And Light Company | ||
Entity Information [Line Items] | ||
Utility Plant In Service | . PROPERTY, PLANT AND EQUIPMENT The original cost of property, plant and equipment segregated by functional classifications follows: As of December 31, 2020 2019 (In Thousands) Production $ 4,191,223 $ 4,154,919 Transmission 408,380 398,903 Distribution 1,671,861 1,594,208 General plant 258,931 250,582 Total property, plant and equipment $ 6,530,395 $ 6,398,612 In December 2020, IPL reclassified net property, plant and equipment of $74.5 million associated with the Petersburg Unit 1 retirement to long-term regulatory assets by crediting accumulated depreciation (for further discussion, see Note 2, “ Regulatory Matters - IRP Filing ”). Substantially all of IPL’s property is subject to a $1,803.8 million direct first mortgage lien, as of December 31, 2020, securing IPL’s first mortgage bonds. Total non-contractually or legally required accrued removal costs of utility plant in service at December 31, 2020 and 2019 were $818.0 million and $788.3 million, respectively; and total contractually or legally required removal costs of property, plant and equipment at December 31, 2020 and 2019 were $195.2 million and $204.2 million, respectively. Please see “ARO” below for further information. ARO 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 relates primarily to environmental issues involving asbestos-containing materials, ash ponds, landfills and miscellaneous contaminants associated with its generating plants, transmission system and distribution system. The following is a roll forward of the ARO legal liability year end balances: 2020 2019 (In Thousands) Balance as of January 1 $ 204,219 $ 129,451 Liabilities settled (18,302) (9,891) Revisions to cash flow and timing estimates 1,120 78,153 Accretion expense 8,199 6,506 Balance as of December 31 $ 195,236 $ 204,219 |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2020 | |
Entity Information [Line Items] | |
Fair Value | FAIR VALUE The fair value of financial assets and liabilities approximate their reported carrying amounts. The estimated fair values of the Company’s assets and liabilities have been determined using available market information. As these amounts are estimates and based on hypothetical transactions to sell assets or transfer liabilities, the use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. Fair Value Hierarchy and Valuation Techniques 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. 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. Financial Assets VEBA Assets IPALCO has VEBA investments that are to be used to fund certain employee postretirement health care benefit plans. These assets are primarily comprised of open-ended mutual funds, which are valued using the net assets value per unit. These investments are recorded at fair value within " Other non-current assets " on the accompanying Consolidated Balance Sheets and classified as equity securities. All changes to fair value on the VEBA investments are included in income in the period that the changes occur. These changes to fair value were not material for the years ended December 31, 2020, 2019, or 2018. Any unrealized gains or losses are recorded in " Other income / (expense), net " on the accompanying Consolidated Statements of Operations. FTRs In connection with IPL’s participation in MISO, in the second quarter of each year IPL is granted financial instruments that can be converted into cash or FTRs based on IPL’s forecasted peak load for the period. FTRs are used in the MISO market to hedge IPL’s exposure to congestion charges, which result from constraints on the transmission system. IPL’s FTRs are valued at the cleared auction prices for FTRs in MISO’s annual auction. Because of the infrequent nature of this valuation, the fair value assigned to the FTRs is considered a Level 3 input under the fair value hierarchy required by ASC 820. An offsetting regulatory liability has been recorded as these revenues or costs will be flowed through to customers through the FAC. As such, there is no impact on our Consolidated Statements of Operations. Financial Liabilities Interest Rate Hedges In March 2019, we entered into forward interest rate hedges, which were amended in April 2020. The interest rate hedges have a combined notional amount of $400.0 million. All changes in the market value of the interest rate hedges are recorded in AOCL. See also Note 5, " Derivative Instruments and Hedging Activities - Cash Flow Hedges " for further information. Summary The fair value of assets and liabilities at December 31, 2020 measured on a recurring basis and the respective category within the fair value hierarchy for IPALCO was determined as follows: Assets and Liabilities at Fair Value Level 1 Level 2 Level 3 Fair value at December 31, 2020 Based on quoted market prices in active markets Other observable inputs Unobservable inputs (In Thousands) Financial assets: VEBA investments: Money market funds $ 16 $ 16 $ — $ — Mutual funds 3,209 — 3,209 — Total VEBA investments 3,225 16 3,209 — Financial transmission rights 543 — — 543 Total financial assets measured at fair value $ 3,768 $ 16 $ 3,209 $ 543 Financial liabilities: Interest rate hedges $ 63,215 $ — $ 63,215 $ — Total financial liabilities measured at fair value $ 63,215 $ — $ 63,215 $ — The fair value of assets and liabilities at December 31, 2019 measured on a recurring basis and the respective category within the fair value hierarchy for IPALCO was determined as follows: Assets and Liabilities at Fair Value Level 1 Level 2 Level 3 Fair value at December 31, 2019 Based on quoted market prices in active markets Other observable inputs Unobservable inputs (In Thousands) Financial assets: VEBA investments: Money market funds $ 25 $ 25 $ — $ — Mutual funds 2,854 — 2,854 — Total VEBA investments 2,879 25 2,854 — Financial transmission rights 864 — — 864 Total financial assets measured at fair value $ 3,743 $ 25 $ 2,854 $ 864 Financial liabilities: Interest rate hedges $ 26,560 $ — $ 26,560 $ — Total financial liabilities measured at fair value $ 26,560 $ — $ 26,560 $ — The following table sets forth a roll forward of financial instruments, measured at fair value on a recurring basis, classified as Level 3 in the fair value hierarchy (note, amounts in this table indicate carrying values, which approximate fair values): Reconciliation of Financial Instruments Classified as Level 3 (In Thousands) Balance at January 1, 2019 $ 3,046 Unrealized gain recognized in earnings 53 Issuances 2,846 Settlements (5,081) Balance at December 31, 2019 $ 864 Issuances 1,889 Settlements (2,210) Balance at December 31, 2020 $ 543 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: December 31, 2020 December 31, 2019 Face Value Fair Value Face Value Fair Value (In Thousands) Fixed-rate $ 2,683,800 $ 3,295,588 $ 2,523,800 $ 2,876,140 Variable-rate 75,000 75,000 155,000 155,000 Total indebtedness $ 2,758,800 $ 3,370,588 $ 2,678,800 $ 3,031,140 The difference between the face value and the carrying value of this indebtedness represents the following: • unamortized deferred financing costs of $26.0 million and $20.7 million at December 31, 2020 and 2019, respectively; and • unamortized discounts of $6.6 million and $6.5 million at December 31, 2020 and 2019, respectively. |
Indianapolis Power And Light Company | |
Entity Information [Line Items] | |
Fair Value | FAIR VALUE The fair value of financial assets and liabilities approximate their reported carrying amounts. The estimated fair values of IPL’s assets and liabilities have been determined using available market information. As these amounts are estimates and based on hypothetical transactions to sell assets or transfer liabilities, the use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. Fair Value Hierarchy and Valuation Techniques 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, IPL has categorized its 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. Whenever possible, quoted prices in active markets are used to determine the fair value of IPL’s financial instruments. IPL’s 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 IPL 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. Financial Assets FTRs In connection with IPL’s participation in MISO, in the second quarter of each year IPL is granted financial instruments that can be converted into cash or FTRs based on IPL’s forecasted peak load for the period. FTRs are used in the MISO market to hedge IPL’s exposure to congestion charges, which result from constraints on the transmission system. IPL’s FTRs are valued at the cleared auction prices for FTRs in MISO’s annual auction. Because of the infrequent nature of this valuation, the fair value assigned to the FTRs is considered a Level 3 input under the fair value hierarchy required by ASC 820. An offsetting regulatory liability has been recorded as these revenues or costs will be flowed through to customers through the FAC. As such, there is no impact on IPL’s Consolidated Statements of Operations. Summary The fair value of assets and liabilities at December 31, 2020 measured on a recurring basis and the respective category within the fair value hierarchy for IPL was determined as follows: Assets and Liabilities at Fair Value Level 1 Level 2 Level 3 Fair value at December 31, 2020 Based on quoted market prices in active markets Other observable inputs Unobservable inputs (In Thousands) Financial assets: Financial transmission rights $ 543 $ — $ — $ 543 Total financial assets measured at fair value $ 543 $ — $ — $ 543 The fair value of assets and liabilities at December 31, 2019 measured on a recurring basis and the respective category within the fair value hierarchy for IPL was determined as follows: Assets and Liabilities at Fair Value Level 1 Level 2 Level 3 Fair value at December 31, 2019 Based on quoted market prices in active markets Other observable inputs Unobservable inputs (In Thousands) Financial assets: Financial transmission rights $ 864 $ — $ — $ 864 Total financial assets measured at fair value $ 864 $ — $ — $ 864 The following table sets forth a roll forward of financial instruments, measured at fair value on a recurring basis, classified as Level 3 in the fair value hierarchy (note, amounts in this table indicate carrying values, which approximate fair values): Reconciliation of Financial Instruments Classified as Level 3 (In Thousands) Balance at January 1, 2019 $ 3,046 Unrealized gain recognized in earnings 53 Issuances 2,846 Settlements (5,081) Balance at December 31, 2019 $ 864 Issuances 1,889 Settlements (2,210) Balance at December 31, 2020 $ 543 Financial Instruments not Measured at Fair Value in the Consolidated Balance Sheets Debt The fair value of IPL’s 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: December 31, 2020 December 31, 2019 Face Value Fair Value Face Value Fair Value (In Thousands) Fixed-rate $ 1,803,800 $ 2,302,973 $ 1,713,800 $ 2,049,758 Variable-rate 75,000 75,000 90,000 90,000 Total indebtedness $ 1,878,800 $ 2,377,973 $ 1,803,800 $ 2,139,758 The difference between the face value and the carrying value of this indebtedness represents the following: • unamortized deferred financing costs of $17.4 million and $16.7 million at December 31, 2020 and 2019, respectively; and • unamortized discounts of $6.0 million and $6.2 million at December 31, 2020 and 2019, respectively. |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2020 | |
Entity Information [Line Items] | |
Regulatory Assets and Liabilities | 2. REGULATORY MATTERS General IPL is subject to regulation by the IURC as to its services and facilities, the valuation of property, the construction, purchase, or lease of electric generating facilities, the classification of accounts, rates of depreciation, retail rates and charges, the issuance of securities (other than evidences of indebtedness payable less than twelve months after the date of issue), the acquisition and sale of some public utility properties or securities and certain other matters. In addition, IPL is subject to the jurisdiction of the FERC with respect to, among other things, short-term borrowings not regulated by the IURC, the sale of electricity at wholesale, the transmission of electric energy in interstate commerce, the classification of accounts, reliability standards, and the acquisition and sale of utility property in certain circumstances as provided by the Federal Power Act. As a regulated entity, IPL is required to use certain accounting methods prescribed by regulatory bodies which may differ from those accounting methods required to be used by unregulated entities. IPL is also affected by the regulatory jurisdiction of the EPA at the federal level, and the IDEM at the state level. Other significant regulatory agencies affecting IPL include, but are not limited to, the NERC, the U.S. Department of Labor and the IOSHA. Basic Rates and Charges Our basic rates and charges represent the largest component of our annual revenues. Our basic rates and charges are determined after giving consideration, on a pro-forma basis, to all allowable costs for ratemaking purposes including a fair return on the fair value of the utility property used and useful in providing service to customers. These basic rates and charges are set and approved by the IURC after public hearings. Such proceedings, which have occurred at irregular intervals, involve IPL, the IURC, the Indiana Office of Utility Consumer Counselor, and other interested stakeholders. Pursuant to statute, the IURC is to conduct a periodic review of the basic rates and charges of all Indiana utilities at least once every four years, but the IURC has the authority to review the rates of any Indiana utility at any time. Once set, the basic rates and charges authorized do not assure the realization of a fair return on the fair value of property. Our declining block rate structure generally provides for residential and commercial customers to be charged a lower per kWh rate at higher consumption levels. Therefore, as volumes increase, the weighted average price per kWh decreases. Numerous factors including, but not limited to, weather, inflation, customer growth and usage, the level of actual operating and maintenance expenditures, fuel costs, generating unit availability, and capital expenditures including those required by environmental regulations can affect the return realized. Base Rate Orders On October 31, 2018, the IURC issued an order approving an uncontested settlement agreement previously filed with the IURC by IPL for a $43.9 million, or 3.2%, increase to annual revenues (the "2018 Base Rate Order"). The 2018 Base Rate Order includes recovery through rates of the CCGT at Eagle Valley completed in the first half of 2018, as well as other construction projects and changes to operating income since the 2016 Base Rate Order. New basic rates and charges became effective on December 5, 2018. The 2018 Base Rate Order also provides customers approximately $50 million in benefits, which are flowing to customers over the two-year period that began March 2019, via the ECCRA rate adjustment mechanism. This liability, less amounts returned to IPL's customers during 2020 and 2019, is recorded primarily in " Regulatory liabilities, current " ($4.7 million and $25.1 million as of December 31, 2020 and 2019, respectively) and "Regulatory liabilities, non-current" ($0.0 million and $4.7 million as of December 31, 2020 and 2019, respectively) on the accompanying Consolidated Balance Sheets. In addition, the 2018 Base Rate Order provides that annual wholesale margins earned above (or below) the benchmark of $16.3 million shall be passed back (or charged) to customer rates through a rate adjustment mechanism. Prior to the 2018 Base Rate Order, wholesale sales margins were shared with customers 50% above and below an established benchmark of $6.3 million. Similarly, the 2018 Base Rate Order provides that all capacity sales above (or below) a benchmark of $11.3 million shall be passed back (or charged) to customer rates through a rate adjustment mechanism. The 2018 Base Rate Order also approved changes to IPL's depreciation and amortization rates (including no longer deferring depreciation on the CCGT at Eagle Valley) which altogether represent a net expense increase of approximately $28.7 million annually. Other The DOE issued a Notice of Proposed Rule Making on September 29, 2017, which directed the FERC to exercise its authority to set just and reasonable rates that recognize the “ resiliency ” value provided by generation plants with certain characteristics, including having 90-days or more of on-site fuel and operating in markets where they do not receive rate base treatment through state ratemaking. Nuclear and coal-fired generation plants would have been most likely to be able to meet the requirements. As proposed, the DOE would value resiliency through rates that recover “ compensable costs ” that were defined to include the recovery of operating and fuel expenses, debt service and a fair return on equity. On January 8, 2018, the FERC issued an order terminating this docket stating that it failed to satisfy the legal requirements of Section 206 of the Federal Power Act of 1935. The FERC initiated a new docket to take additional steps to explore resilience issues in RTOs/ISOs. The goal of this new proceeding is to: (1) develop a common understanding among the FERC, State Commissions, RTOs/ISOs, transmission owners, and others as to what resilience of the bulk power system means and requires; (2) understand how each RTO and ISO assesses resilience in its geographic footprint; and (3) use this information to evaluate whether additional action regarding resilience is appropriate at this time. It is not possible to predict the impact of this proceeding on our business, financial condition and results of operations. FAC and Authorized Annual Jurisdictional Net Operating Income IPL may apply to the IURC for a change in IPL’s fuel charge every three months to recover IPL’s estimated fuel costs, including the energy portion of purchased power costs, which may be above or below the levels included in IPL’s basic rates and charges. IPL must present evidence in each FAC proceeding that it has made every reasonable effort to acquire fuel and generate or purchase power or both so as to provide electricity to its retail customers at the lowest fuel cost reasonably possible. Independent of the IURC’s ability to review basic rates and charges, Indiana law requires electric utilities under the jurisdiction of the IURC to meet operating expense and income test requirements as a condition for approval of requested changes in the FAC. A utility may be unable to recover all of its fuel costs if its rolling twelve-month operating income, determined at quarterly measurement dates, exceeds its authorized annual jurisdictional net operating income and there are not sufficient applicable cumulative net operating income deficiencies (“Cumulative Deficiencies”) to offset it. The Cumulative Deficiencies calculation provides that only five years’ worth of historical earnings deficiencies or surpluses are included, unless it has been greater than five years since the most recent rate case. In each of the last three calendar years, IPL has reported earnings in excess of the authorized level for each of the four quarterly reporting periods in those years, however IPL was not required to reduce its fuel cost recovery because of its Cumulative Deficiencies. During 2020, IPL's Cumulative Deficiencies dropped to zero and thus IPL recorded a reduction to revenue of $10.0 million in 2020. IPL's regulatory liability attributed to the Cumulative Deficiencies calculation was $7.7 million as of December 31, 2020, which is recorded within " Regulatory liabilities, current " on the accompanying Consolidated Balance Sheets. ECCRA IPL may apply to the IURC for approval of a rate adjustment known as the ECCRA periodically to recover costs (including a return) to comply with certain environmental regulations applicable to IPL’s generating stations. The total amount of IPL’s equipment approved for ECCRA recovery as of December 31, 2020 was $22.5 million. The jurisdictional revenue requirement approved by the IURC to be included in IPL’s rates for the twelve-month period ending February 2021 was a net credit to customers of $31.2 million. This amount is significantly lower than ECCRA periods prior to 2019 as a result of (i) having the vast majority of the ECCRA projects rolled into IPL’s basic rates and charges effective December 5, 2018 as a result of the 2018 Base Rate Order and (ii) the approximately $50 million of customer benefits being flowed through the ECCRA as a result of the 2018 Base Rate Order, as described above. The only equipment still remaining in the ECCRA as of December 31, 2020 are certain projects associated with NAAQS compliance. DSM Through various rate orders from the IURC, IPL has been able to recover its costs of implementing various DSM programs throughout the periods covered by this report. In 2020, 2019 and 2018, IPL also had the ability to receive performance incentives, dependent upon the level of success of the programs. Performance incentives included in revenues for the years ended December 31, 2020, 2019 and 2018 were $6.0 million, $7.5 million and $3.8 million, respectively. On February 7, 2018, the IURC approved a settlement agreement approving a three year DSM plan for IPL through 2020. The approval included cost recovery of programs as well as performance incentives, depending on the level of success of the programs. The order also approved recovery of lost revenues, consistent with the provisions of the settlement agreement. On December 29, 2020, the IURC approved a settlement agreement establishing a new three year DSM plan for IPL through 2023. The approval included cost recovery of programs as well as performance incentives, depending on the level of success of the programs. The order also approved recovery of lost revenues, consistent with the provisions of the settlement agreement. Wind and Solar Power Purchase Agreements We are committed under a power purchase agreement to purchase all wind-generated electricity through 2029 from a wind project in Indiana. We are also committed under another agreement to purchase all wind-generated electricity through 2031 from a project in Minnesota. The Indiana project has a maximum output capacity of approximately 100 MW and the Minnesota project has a maximum output capacity of approximately 200 MW. In addition, we have 96.4 MW of solar-generated electricity in our service territory under long-term contracts (these long-term contracts have expiration dates ranging from 2021 to 2033), of which 95.9 MW was in operation as of December 31, 2020. We have authority from the IURC to recover the costs for all of these agreements through an adjustment mechanism administered within the FAC. If and when IPL sells the renewable energy attributes (in the form of renewable energy credits) generated from these facilities, the proceeds would pass back to benefit IPL’s retail customers through the FAC. Taxes On January 3, 2018, the IURC opened a generic investigation to review and consider the impacts from the TCJA and how any resulting benefits should be realized by customers. The IURC’s order opening this investigation directed Indiana utilities to apply regulatory accounting treatment, such as the use of regulatory assets and regulatory liabilities, for all estimated impacts resulting from the TCJA. On February 16, 2018, the IURC issued an order establishing two phases of the investigation. The first phase (“Phase I”) directed respondent utilities (including IPL) to make a filing to remove from respondents’ rates and charges for service, the impact of a lower federal income tax rate. The second phase (“Phase II”) was established to address remaining issues from the TCJA, including treatment of deferred taxes and how these benefits will be realized by customers. On August 29, 2018, the IURC approved a settlement agreement filed by IPL and various other parties to resolve the Phase I issues of the TCJA tax expense via a credit through the ECCRA rate adjustment mechanism of $9.5 million. The 2018 Base Rate Order described above resolved the Phase II and all other issues regarding the TCJA impact on IPL's rates and includes an additional credit of $14.3 million to be paid by IPL to its customers through the ECCRA rate adjustment mechanism over two years beginning in March 2019. TDSIC In 2013, Senate Enrolled Act 560, the Transmission, Distribution, and Storage System Improvement Charge ("TDSIC") statute, was signed into law. The TDSIC statute was revised in 2019. Among other provisions, this legislation provides for cost recovery outside of a base rate proceeding for new or replacement electric and gas transmission, distribution, and storage projects that a public utility undertakes for the purposes of safety, reliability, system modernization, or economic development. Provisions of the TDSIC statute require that, among other things, requests for recovery include a plan of at least five years and not more than seven for eligible investments. The first eighty percent of eligible costs can be recovered using a periodic rate adjustment mechanism. The cost recovery mechanism is referred to as a TDSIC mechanism. Recoverable costs include a return on, and of, the investment, including AFUDC, post-in-service carrying charges, operation and maintenance expenses, depreciation and property taxes. The remaining twenty percent of recoverable costs are to be deferred for future recovery in the public utility’s next base rate case. The periodic rate adjustment mechanism is capped at an annual increase of no more than two percent of total retail revenues. On March 4, 2020, the IURC issued an order approving the projects in a seven-year TDSIC Plan for eligible transmission, distribution and storage system improvements totaling $1.2 billion from 2020 through 2027. On June 18, 2020, IPL filed its first annual TDSIC rate adjustment (TDSIC 1) for a return on and of investments through March 31, 2020. On October 14, 2020, the IURC issued an order approving this TDSIC rate adjustment, which was reflected in rates effective November 2020. On December 23, 2020, IPL filed its first annual TDSIC plan update filing (TDSIC 2), which was staggered by six months from TDSIC 1 as ordered by the IURC. IRP Filing In December 2019, IPL filed its IRP, which describes IPL's Preferred Resource Portfolio for meeting generation capacity needs for serving IPL's retail customers over the next several years. IPL's Preferred Resource Portfolio is its reasonable least cost option and provides a cleaner and more diverse generation mix for customers. IPL's Preferred Resource Portfolio includes the retirement of approximately 630 MW of coal-fired generation at Petersburg Units 1 and 2 in 2021 and 2023, respectively. Based on extensive modeling, IPL has determined that the cost of operating Petersburg Units 1 and 2 exceeds the value customers receive compared to alternative resources. Retirement of these units allows the company to cost-effectively diversify the portfolio and transition to lower cost and cleaner resources while maintaining a reliable system. IPL issued an all-source Request for Proposal on December 20, 2019, in order to competitively procure replacement capacity by June 1, 2023, which is the first year IPL is expected to have a capacity shortfall. Our modeling indicated that a combination of wind, solar, storage, and energy efficiency would be the lowest reasonable cost option for the replacement capacity, but IPL continues to assess the type, size, and location of resources in the bids we received. As a result of the plans to retire Petersburg Units 1 and 2, IPL recorded a $6.2 million obsolescence loss in December 2019 for materials and supplies inventory IPL does not believe will be utilized by the planned retirement dates, which is recorded in " Operating expenses - Operation and maintenance " on the accompanying Consolidated Statements of Operations. In December 2020, IPL reclassified net property, plant and equipment of $74.5 million, associated with the probable Petersburg Unit 1 retirement, to long-term regulatory assets. On February 5, 2021, IPL announced an agreement to acquire a 195 MW solar project. Expected to be completed in 2023, the solar project will be located in Clinton County, Indiana and Invenergy will develop the project and manage construction. The acquisition agreement is subject to approval from the IURC. On February 12, 2021, IPL filed a petition and case-in-chief with the IURC seeking a CPCN for this solar project. IURC COVID-19 Orders In its June 29, 2020 order, the IURC extended the disconnection moratorium for IURC-jurisdictional utilities through August 14, 2020, which has lapsed. Additionally, the IURC authorized Indiana utilities to use regulatory accounting for any impacts associated with prohibiting utility disconnections, waiver or exclusion of certain utility fees (i.e., late fees, convenience fees, deposits, and reconnection fees), and also required utilities to use expanded payment arrangements to aid customers. The IURC also authorized regulatory accounting treatment for COVID-19 related uncollectible and incremental bad debt expense. On August 12, 2020, the IURC required all jurisdictional utilities to continue offering extended payment arrangements for a minimum of six months to all customers for an additional 60 days, until October 12, 2020, which the IURC again extended through December 31, 2020 for residential customers on October 27, 2020. The IURC also continued to suspend the collection of certain utility fees (late fees, deposits, and disconnection/reconnection fees) from residential customers for an additional 60 days, until October 12, 2020, after which utilities were allowed to resume charging convenience fees as set forth in the rate and charges established in their Commission-approved tariffs. As a result of these orders, IPL has recorded a $6.4 million regulatory asset as of December 31, 2020. Additionally, IPL implemented and extended flexible payment assistance plans to customers during 2020. Phase Two of the IURC investigation is expected to focus on longer-term issues related to COVID-19. Among other things, the issues may include consideration of appropriate methodology to review the reasonableness, necessity, and prudency of any COVID-19-related cost recovery requests in future rate cases. For further discussion on the COVID-19 pandemic, see Note 15, "Risks and Uncertainties - COVID-19 Pandemic". Regulatory Assets and Liabilities Regulatory assets represent deferred costs or credits that have been included as allowable costs or credits for ratemaking purposes. IPL has recorded regulatory assets or liabilities relating to certain costs or credits as authorized by the IURC or established regulatory practices in accordance with ASC 980. IPL is amortizing non tax-related regulatory assets to expense over periods ranging from 1 to 45 years. Tax-related regulatory assets represent the net income tax costs to be considered in future regulatory proceedings generally as the tax-related amounts are paid. The amounts of regulatory assets and regulatory liabilities at December 31 are as follows: 2020 2019 Recovery Period (In Thousands) Regulatory Assets Current: Undercollections of rate riders $ 31,569 $ 22,216 Approximately 1 year (1) Costs being recovered through basic rates and charges 13,861 15,182 Approximately 1 year (1) Total current regulatory assets 45,430 37,398 Long-term: Unrecognized pension and other postretirement benefit plan costs 149,374 176,646 Various (2) Deferred MISO costs 61,267 74,660 Through 2026 (1) Unamortized Petersburg Unit 4 carrying charges and certain other costs 5,975 7,030 Through 2026 (1)(3) Unamortized reacquisition premium on debt 17,018 18,330 Over remaining life of debt Environmental projects 74,637 78,021 Through 2046 (1)(3) COVID-19 6,391 — To be determined TDSIC projects 2,747 — 36.3 years (1)(3) Petersburg Unit 1 retirement 74,545 — Through 2035 (3)(5) Other miscellaneous 847 927 Various (4) Total long-term regulatory assets 392,801 355,614 Total regulatory assets $ 438,231 $ 393,012 Regulatory Liabilities Current: Overcollections and other credits being passed to customers through rate riders $ 29,493 $ 51,790 Approximately 1 year (1) FTRs 543 864 Approximately 1 year (1) Total current regulatory liabilities 30,036 52,654 Long-term: ARO and accrued asset removal costs 723,897 719,680 Not applicable Deferred income taxes payable to customers through rates 112,957 122,156 Various Long-term portion of credits being passed to customers through rate riders — 3,337 Through 2020 Other miscellaneous 2,506 1,257 To be determined Total long-term regulatory liabilities 839,360 846,430 Total regulatory liabilities $ 869,396 $ 899,084 (1) Recovered (credited) per specific rate orders (2) IPL receives a return on its discretionary funding (3) Recovered with a current return (4) The majority of these costs are being recovered in basic rates and charges through 2026. For the remainder, recovery is probable, but the timing is not yet determined. (5) Recovered per regulatory precedent. Current Regulatory Assets and Liabilities Current regulatory assets and liabilities primarily represent costs that are being recovered per specific rate order; recovery for the remaining costs is probable, but not certain. As current assets, this includes undercollection of adjustment mechanisms for: (i) DSM, (ii) Off System Sales Margin Sharing, (iii) Capacity Cost Recovery and (iv) TDSIC. It also includes the current portion of deferred MISO costs and environmental costs which are described in greater detail below. As current liabilities, this includes overcollection of green power costs, MISO rider costs, fuel costs (including the NOI liability) and ECCRA costs. Deferred Fuel Deferred fuel costs are a component of current regulatory assets or liabilities (which is a result of IPL charging either more or less for fuel than our actual costs to our jurisdictional customers) and are expected to be recovered through future FAC proceedings. IPL records deferred fuel in accordance with standards prescribed by the FERC. The deferred fuel adjustment is the result of variances between estimated fuel and purchased power costs in IPL’s FAC and actual fuel and purchased power costs. IPL is generally permitted to recover underestimated fuel and purchased power costs in future rates through the FAC proceedings and therefore the costs are deferred when incurred and amortized into fuel expense in the same period that IPL’s rates are adjusted to reflect these costs. Unrecognized Pension and Postretirement Benefit Plan Costs In accordance with ASC 715 “Compensation – Retirement Benefits” and ASC 980, we recognize a regulatory asset equal to the unrecognized actuarial gains and losses and prior service costs. Pension expenses are recorded based on the benefit plan’s actuarially determined pension liability and associated level of annual expenses to be recognized. The other postretirement benefit plan’s deferred benefit cost is the excess of the other postretirement benefit liability over the amount previously recognized. Deferred MISO Costs These consist of administrative costs for transmission services, transmission expansion cost sharing, and certain other operational and administrative costs from the MISO market. These costs are being recovered per specific rate order. Unamortized Petersburg Unit 4 Carrying Charges and Certain Other Costs These consist of deferred debt carrying costs, depreciation, and post-in-service Allowance for Funds Used During Construction ("AFUDC") on Petersburg Unit 4. These costs are being recovered per specific rate order. Unamortized Reaquisition Premium on Debt This regulatory asset represents losses on long-term debt reacquired or redeemed in prior periods that have been deferred. These deferred losses are being amortized over the lives of the original issues in accordance with the rules of the FERC and the IURC. Environmental Costs These consist of various costs incurred to comply with environmental regulations. These costs were approved for recovery either through IPL's ECCRA proceedings or in the 2018 Base Rate Order. Amortization periods vary, ranging from 3 to 45 years. COVID-19 Costs These consist of deferred fees (foregone late fees, reconnection fees and disconnection fees), as well as deferred convenience payments and incremental bad debt expense as the result of COVID-19. See " IURC COVID-19 Orders " above for additional discussion. TDSIC Costs These consist of various costs incurred for IPL's approved TDSIC Plan. These costs were approved for recovery through IPL's TDSIC proceedings and amortization periods range from 3 to 31 years. See " TDSIC " above for additional discussion. Petersburg Unit 1 Retirement Costs These consist of the estimated remaining net book value of Petersburg Unit 1 at its anticipated date of retirement. It was determined that the Petersburg Unit 1 retirement became probable, in accordance with ASC 980, in the fourth quarter of 2020. As it is expected that the entire carrying value of the asset will be recoverable through future rates, no loss on abandonment was recorded and the asset was reclassified from net property, plant and equipment to a long-term regulatory asset. See " IRP Filing " above for additional discussion. FTRs In connection with IPL’s participation in MISO, in the second quarter of each year IPL is granted financial instruments that can be converted into cash or FTRs based on IPL’s forecasted peak load for the period. See Note 4 , "Fair Value - Fair Value Hierarchy and Valuation Techniques - Financial Assets - FTRs " for additional information. ARO and Accrued Asset Removal Costs In accordance with ASC 410 and ASC 980, IPL recognizes the amount collected in customer rates for costs of removal that do not have an associated legal retirement obligation as a deferred regulatory liability. This amount is net of the portion of legal ARO costs that is also currently being recovered in rates. Deferred Income Taxes Recoverable/Payable Through Rates A deferred income tax asset or liability is created from a difference in timing of income recognition between tax laws and accounting methods. As a regulated utility, IPL includes in ratemaking the impacts of current income taxes and changes in deferred income tax liabilities or assets. On December 22, 2017, the U.S. federal government enacted the TCJA, which, among other things, reduced the federal corporate income tax rate from 35% to 21%, beginning January 1, 2018. As required by GAAP, on December 31, 2017, IPL and IPALCO remeasured their deferred income tax assets and liabilities using the new tax rate. The impact of the reduction of the income tax rate on deferred income taxes was utilized in the 2018 Base Rate Order to reduce jurisdictional retail rates. Accordingly, we have a net regulatory deferred income tax liability of $113.0 million and $122.2 million as of December 31, 2020 and 2019, respectively. |
Indianapolis Power And Light Company | |
Entity Information [Line Items] | |
Regulatory Assets and Liabilities | . REGULATORY MATTERS General IPL is subject to regulation by the IURC as to its services and facilities, the valuation of property, the construction, purchase, or lease of electric generating facilities, the classification of accounts, rates of depreciation, retail rates and charges, the issuance of securities (other than evidences of indebtedness payable less than twelve months after the date of issue), the acquisition and sale of some public utility properties or securities and certain other matters. In addition, IPL is subject to the jurisdiction of the FERC with respect to, among other things, short-term borrowings not regulated by the IURC, the sale of electricity at wholesale, the transmission of electric energy in interstate commerce, the classification of accounts, reliability standards, and the acquisition and sale of utility property in certain circumstances as provided by the Federal Power Act. As a regulated entity, IPL is required to use certain accounting methods prescribed by regulatory bodies which may differ from those accounting methods required to be used by unregulated entities. IPL is also affected by the regulatory jurisdiction of the EPA at the federal level, and the IDEM at the state level. Other significant regulatory agencies affecting IPL include, but are not limited to, the NERC, the U.S. Department of Labor and the IOSHA. Basic Rates and Charges IPL’s basic rates and charges represent the largest component of its annual revenues. IPL’s basic rates and charges are determined after giving consideration, on a pro-forma basis, to all allowable costs for ratemaking purposes including a fair return on the fair value of the utility property used and useful in providing service to customers. These basic rates and charges are set and approved by the IURC after public hearings. Such proceedings, which have occurred at irregular intervals, involve IPL, the IURC, the Indiana Office of Utility Consumer Counselor, and other interested stakeholders. Pursuant to statute, the IURC is to conduct a periodic review of the basic rates and charges of all Indiana utilities at least once every four years, but the IURC has the authority to review the rates of any Indiana utility at any time. Once set, the basic rates and charges authorized do not assure the realization of a fair return on the fair value of property. IPL’s declining block rate structure generally provides for residential and commercial customers to be charged a lower per kWh rate at higher consumption levels. Therefore, as volumes increase, the weighted average price per kWh decreases. Numerous factors including, but not limited to, weather, inflation, customer growth and usage, the level of actual operating and maintenance expenditures, fuel costs, generating unit availability, and capital expenditures including those required by environmental regulations can affect the return realized. Base Rate Orders On October 31, 2018, the IURC issued an order approving an uncontested settlement agreement previously filed with the IURC by IPL for a $43.9 million, or 3.2%, increase to annual revenues (the "2018 Base Rate Order"). The 2018 Base Rate Order includes recovery through rates of the CCGT at Eagle Valley completed in the first half of 2018, as well as other construction projects and changes to operating income since the 2016 Base Rate Order. New basic rates and charges became effective on December 5, 2018. The 2018 Base Rate Order also provides customers approximately $50 million in benefits, which are flowing to customers over the two-year period that began March 2019, via the ECCRA rate adjustment mechanism. This liability, less amounts returned to IPL's customers during 2020 and 2019, is recorded primarily in " Regulatory liabilities, current " ($4.7 million and $25.1 million as of December 31, 2020 and 2019, respectively) and "Regulatory liabilities, non-current" ($0.0 million and $4.7 million as of December 31, 2020 and 2019, respectively) on the accompanying Consolidated Balance Sheets. In addition, the 2018 Base Rate Order provides that annual wholesale margins earned above (or below) the benchmark of $16.3 million shall be passed back (or charged) to customer rates through a rate adjustment mechanism. Prior to the 2018 Base Rate Order, wholesale sales margins were shared with customers 50% above and below an established benchmark of $6.3 million. Similarly, the 2018 Base Rate Order provides that all capacity sales above (or below) a benchmark of $11.3 million shall be passed back (or charged) to customer rates through a rate adjustment mechanism. The 2018 Base Rate Order also approved changes to IPL's depreciation and amortization rates (including no longer deferring depreciation on the CCGT at Eagle Valley) which altogether represent a net expense increase of approximately $28.7 million annually. Other The DOE issued a Notice of Proposed Rule Making on September 29, 2017, which directed the FERC to exercise its authority to set just and reasonable rates that recognize the “ resiliency ” value provided by generation plants with certain characteristics, including having 90-days or more of on-site fuel and operating in markets where they do not receive rate base treatment through state ratemaking. Nuclear and coal-fired generation plants would have been most likely to be able to meet the requirements. As proposed, the DOE would value resiliency through rates that recover “ compensable costs ” that were defined to include the recovery of operating and fuel expenses, debt service and a fair return on equity. On January 8, 2018, the FERC issued an order terminating this docket stating that it failed to satisfy the legal requirements of Section 206 of the Federal Power Act of 1935. The FERC initiated a new docket to take additional steps to explore resilience issues in RTOs/ISOs. The goal of this new proceeding is to: (1) develop a common understanding among the FERC, State Commissions, RTOs/ISOs, transmission owners, and others as to what resilience of the bulk power system means and requires; (2) understand how each RTO and ISO assesses resilience in its geographic footprint; and (3) use this information to evaluate whether additional action regarding resilience is appropriate at this time. It is not possible to predict the impact of this proceeding on our business, financial condition and results of operations. FAC and Authorized Annual Jurisdictional Net Operating Income IPL may apply to the IURC for a change in IPL’s fuel charge every three months to recover IPL’s estimated fuel costs, including the energy portion of purchased power costs, which may be above or below the levels included in IPL’s basic rates and charges. IPL must present evidence in each FAC proceeding that it has made every reasonable effort to acquire fuel and generate or purchase power or both so as to provide electricity to its retail customers at the lowest fuel cost reasonably possible. Independent of the IURC’s ability to review basic rates and charges, Indiana law requires electric utilities under the jurisdiction of the IURC to meet operating expense and income test requirements as a condition for approval of requested changes in the FAC. A utility may be unable to recover all of its fuel costs if its rolling twelve-month operating income, determined at quarterly measurement dates, exceeds its authorized annual jurisdictional net operating income and there are not sufficient applicable cumulative net operating income deficiencies (“Cumulative Deficiencies”) to offset it. The Cumulative Deficiencies calculation provides that only five years’ worth of historical earnings deficiencies or surpluses are included, unless it has been greater than five years since the most recent rate case. In each of the last three calendar years, IPL has reported earnings in excess of the authorized level for each of the four quarterly reporting periods in those years, however IPL was not required to reduce its fuel cost recovery because of its Cumulative Deficiencies. During 2020, IPL's Cumulative Deficiencies dropped to zero and thus IPL recorded a reduction to revenue of $10.0 million in 2020. IPL's regulatory liability attributed to the Cumulative Deficiencies calculation was $7.7 million as of December 31, 2020, which is recorded within " Regulatory liabilities, current " on the accompanying Consolidated Balance Sheets. ECCRA IPL may apply to the IURC for approval of a rate adjustment known as the ECCRA periodically to recover costs (including a return) to comply with certain environmental regulations applicable to IPL’s generating stations. The total amount of IPL’s equipment approved for ECCRA recovery as of December 31, 2020 was $22.5 million. The jurisdictional revenue requirement approved by the IURC to be included in IPL’s rates for the twelve-month period ending February 2021 was a net credit to customers of $31.2 million. This amount is significantly lower than ECCRA periods prior to 2019 as a result of (i) having the vast majority of the ECCRA projects rolled into IPL’s basic rates and charges effective December 5, 2018 as a result of the 2018 Base Rate Order and (ii) the approximately $50 million of customer benefits being flowed through the ECCRA as a result of the 2018 Base Rate Order, as described above. The only equipment still remaining in the ECCRA as of December 31, 2020 are certain projects associated with NAAQS compliance. DSM Through various rate orders from the IURC, IPL has been able to recover its costs of implementing various DSM programs throughout the periods covered by this report. In 2020, 2019 and 2018, IPL also had the ability to receive performance incentives, dependent upon the level of success of the programs. Performance incentives included in revenues for the years ended December 31, 2020, 2019 and 2018 were $6.0 million, $7.5 million and $3.8 million, respectively. On February 7, 2018, the IURC approved a settlement agreement approving a three year DSM plan for IPL through 2020. The approval included cost recovery of programs as well as performance incentives, depending on the level of success of the programs. The order also approved recovery of lost revenues, consistent with the provisions of the settlement agreement. On December 29, 2020, the IURC approved a settlement agreement establishing a new three year DSM plan for IPL through 2023. The approval included cost recovery of programs as well as performance incentives, depending on the level of success of the programs. The order also approved recovery of lost revenues, consistent with the provisions of the settlement agreement. Wind and Solar Power Purchase Agreements IPL is committed under a power purchase agreement to purchase all wind-generated electricity through 2029 from a wind project in Indiana. IPL is also committed under another agreement to purchase all wind-generated electricity through 2031 from a project in Minnesota. The Indiana project has a maximum output capacity of approximately 100 MW and the Minnesota project has a maximum output capacity of approximately 200 MW. In addition, IPL has 96.4 MW of solar-generated electricity in its service territory under long-term contracts (these long-term contracts have expiration dates ranging from 2021 to 2033), of which 95.9 MW was in operation as of December 31, 2020. IPL has authority from the IURC to recover the costs for all of these agreements through an adjustment mechanism administered within the FAC. If and when IPL sells the renewable energy attributes (in the form of renewable energy credits) generated from these facilities, the proceeds would pass back to benefit IPL’s retail customers through the FAC. Taxes On January 3, 2018, the IURC opened a generic investigation to review and consider the impacts from the TCJA and how any resulting benefits should be realized by customers. The IURC’s order opening this investigation directed Indiana utilities to apply regulatory accounting treatment, such as the use of regulatory assets and regulatory liabilities, for all estimated impacts resulting from the TCJA. On February 16, 2018, the IURC issued an order establishing two phases of the investigation. The first phase (“Phase I”) directed respondent utilities (including IPL) to make a filing to remove from respondents’ rates and charges for service, the impact of a lower federal income tax rate. The second phase (“Phase II”) was established to address remaining issues from the TCJA, including treatment of deferred taxes and how these benefits will be realized by customers. On August 29, 2018, the IURC approved a settlement agreement filed by IPL and various other parties to resolve the Phase I issues of the TCJA tax expense via a credit through the ECCRA rate adjustment mechanism of $9.5 million. The 2018 Base Rate Order described above resolved the Phase II and all other issues regarding the TCJA impact on IPL's rates and includes an additional credit of $14.3 million to be paid by IPL to its customers through the ECCRA rate adjustment mechanism over two years beginning in March 2019. TDSIC In 2013, Senate Enrolled Act 560, the Transmission, Distribution, and Storage System Improvement Charge ("TDSIC") statute, was signed into law. The TDSIC statute was revised in 2019. Among other provisions, this legislation provides for cost recovery outside of a base rate proceeding for new or replacement electric and gas transmission, distribution, and storage projects that a public utility undertakes for the purposes of safety, reliability, system modernization, or economic development. Provisions of the TDSIC statute require that, among other things, requests for recovery include a plan of at least five years and not more than seven for eligible investments. The first eighty percent of eligible costs can be recovered using a periodic rate adjustment mechanism. The cost recovery mechanism is referred to as a TDSIC mechanism. Recoverable costs include a return on, and of, the investment, including AFUDC, post-in-service carrying charges, operation and maintenance expenses, depreciation and property taxes. The remaining twenty percent of recoverable costs are to be deferred for future recovery in the public utility’s next base rate case. The periodic rate adjustment mechanism is capped at an annual increase of no more than two percent of total retail revenues. On March 4, 2020, the IURC issued an order approving the projects in a seven-year TDSIC Plan for eligible transmission, distribution and storage system improvements totaling $1.2 billion from 2020 through 2027. On June 18, 2020, IPL filed its first annual TDSIC rate adjustment (TDSIC 1) for a return on and of investments through March 31, 2020. On October 14, 2020, the IURC issued an order approving this TDSIC rate adjustment, which was reflected in rates effective November 2020. On December 23, 2020, IPL filed its first annual TDSIC plan update filing (TDSIC 2), which was staggered by six months from TDSIC 1 as ordered by the IURC. IRP Filing In December 2019, IPL filed its IRP, which describes IPL's Preferred Resource Portfolio for meeting generation capacity needs for serving IPL's retail customers over the next several years. IPL's Preferred Resource Portfolio is its reasonable least cost option and provides a cleaner and more diverse generation mix for customers. IPL's Preferred Resource Portfolio includes the retirement of approximately 630 MW of coal-fired generation at Petersburg Units 1 and 2 in 2021 and 2023, respectively. Based on extensive modeling, IPL has determined that the cost of operating Petersburg Units 1 and 2 exceeds the value customers receive compared to alternative resources. Retirement of these units allows the company to cost-effectively diversify the portfolio and transition to lower cost and cleaner resources while maintaining a reliable system. IPL issued an all-source Request for Proposal on December 20, 2019, in order to competitively procure replacement capacity by June 1, 2023, which is the first year IPL is expected to have a capacity shortfall. Our modeling indicated that a combination of wind, solar, storage, and energy efficiency would be the lowest reasonable cost option for the replacement capacity, but IPL continues to assess the type, size, and location of resources in the bids we received. As a result of the plans to retire Petersburg Units 1 and 2, IPL recorded a $6.2 million obsolescence loss in December 2019 for materials and supplies inventory IPL does not believe will be utilized by the planned retirement dates, which is recorded in " Operating expenses - Operation and maintenance " on the accompanying Consolidated Statements of Operations. In December 2020, IPL reclassified net property, plant and equipment of $74.5 million, associated with the probable Petersburg Unit 1 retirement, to long-term regulatory assets. On February 5, 2021, IPL announced an agreement to acquire a 195 MW solar project. Expected to be completed in 2023, the solar project will be located in Clinton County, Indiana and Invenergy will develop the project and manage construction. The acquisition agreement is subject to approval from the IURC. On February 12, 2021, IPL filed a petition and case-in-chief with the IURC seeking a CPCN for this solar project. IURC COVID-19 Orders In its June 29, 2020 order, the IURC extended the disconnection moratorium for IURC-jurisdictional utilities through August 14, 2020, which has lapsed. Additionally, the IURC authorized Indiana utilities to use regulatory accounting for any impacts associated with prohibiting utility disconnections, waiver or exclusion of certain utility fees (i.e., late fees, convenience fees, deposits, and reconnection fees), and also required utilities to use expanded payment arrangements to aid customers. The IURC also authorized regulatory accounting treatment for COVID-19 related uncollectible and incremental bad debt expense. On August 12, 2020, the IURC required all jurisdictional utilities to continue offering extended payment arrangements for a minimum of six months to all customers for an additional 60 days, until October 12, 2020, which the IURC again extended through December 31, 2020 for residential customers on October 27, 2020. The IURC also continued to suspend the collection of certain utility fees (late fees, deposits, and disconnection/reconnection fees) from residential customers for an additional 60 days, until October 12, 2020, after which utilities were allowed to resume charging convenience fees as set forth in the rate and charges established in their Commission-approved tariffs. As a result of these orders, IPL has recorded a $6.4 million regulatory asset as of December 31, 2020. Additionally, IPL implemented and extended flexible payment assistance plans to customers during 2020. Phase Two of the IURC investigation is expected to focus on longer-term issues related to COVID-19. Among other things, the issues may include consideration of appropriate methodology to review the reasonableness, necessity, and prudency of any COVID-19-related cost recovery requests in future rate cases. For further discussion on the COVID-19 pandemic, see Note 15, " Risks and Uncertainties - COVID-19 Pandemic ". Regulatory Assets and Liabilities Regulatory assets represent deferred costs or credits that have been included as allowable costs or credits for ratemaking purposes. IPL has recorded regulatory assets or liabilities relating to certain costs or credits as authorized by the IURC or established regulatory practices in accordance with ASC 980. IPL is amortizing non tax-related regulatory assets to expense over periods ranging from 1 to 45 years. Tax-related regulatory assets represent the net income tax costs to be considered in future regulatory proceedings generally as the tax-related amounts are paid. The amounts of regulatory assets and regulatory liabilities at December 31 are as follows: 2020 2019 Recovery Period (In Thousands) Regulatory Assets Current: Undercollections of rate riders $ 31,569 $ 22,216 Approximately 1 year (1) Costs being recovered through basic rates and charges 13,861 15,182 Approximately 1 year (1) Total current regulatory assets 45,430 37,398 Long-term: Unrecognized pension and other postretirement benefit plan costs 149,374 176,646 Various (2) Deferred MISO costs 61,267 74,660 Through 2026 (1) Unamortized Petersburg Unit 4 carrying charges and certain other costs 5,975 7,030 Through 2026 (1)(3) Unamortized reacquisition premium on debt 17,018 18,330 Over remaining life of debt Environmental projects 74,637 78,021 Through 2046 (1)(3) COVID-19 6,391 — To be determined TDSIC projects 2,747 — 36.3 years (1)(3) Petersburg Unit 1 retirement 74,545 — Through 2035 (3)(5) Other miscellaneous 847 927 Various (4) Total long-term regulatory assets 392,801 355,614 Total regulatory assets $ 438,231 $ 393,012 Regulatory Liabilities Current: Overcollections and other credits being passed to customers through rate riders $ 29,493 $ 51,790 Approximately 1 year (1) FTRs 543 864 Approximately 1 year (1) Total current regulatory liabilities 30,036 52,654 Long-term: ARO and accrued asset removal costs 723,897 719,680 Not applicable Deferred income taxes payable to customers through rates 112,957 122,156 Various Long-term portion of credits being passed to customers through rate riders — 3,337 Through 2020 Other miscellaneous 2,506 1,257 To be determined Total long-term regulatory liabilities 839,360 846,430 Total regulatory liabilities $ 869,396 $ 899,084 (1) Recovered (credited) per specific rate orders (2) IPL receives a return on its discretionary funding (3) Recovered with a current return (4) The majority of these costs are being recovered in basic rates and charges through 2026. For the remainder, recovery is probable, but the timing is not yet determined. (5) Recovered per regulatory precedent. Current Regulatory Assets and Liabilities Current regulatory assets and liabilities primarily represent costs that are being recovered per specific rate order; recovery for the remaining costs is probable, but not certain. As current assets, this includes undercollection of adjustment mechanisms for: (i) DSM, (ii) Off System Sales Margin Sharing, (iii) Capacity Cost Recovery and (iv) TDSIC. It also includes the current portion of deferred MISO costs and environmental costs which are described in greater detail below. As current liabilities, this includes overcollection of green power costs, MISO rider costs, fuel costs (including the NOI liability) and ECCRA costs. Deferred Fuel Deferred fuel costs are a component of current regulatory assets or liabilities (which is a result of IPL charging either more or less for fuel than our actual costs to our jurisdictional customers) and are expected to be recovered through future FAC proceedings. IPL records deferred fuel in accordance with standards prescribed by the FERC. The deferred fuel adjustment is the result of variances between estimated fuel and purchased power costs in IPL’s FAC and actual fuel and purchased power costs. IPL is generally permitted to recover underestimated fuel and purchased power costs in future rates through the FAC proceedings and therefore the costs are deferred when incurred and amortized into fuel expense in the same period that IPL’s rates are adjusted to reflect these costs. Unrecognized Pension and Postretirement Benefit Plan Costs In accordance with ASC 715 “Compensation – Retirement Benefits” and ASC 980, IPL recognizes a regulatory asset equal to the unrecognized actuarial gains and losses and prior service costs. Pension expenses are recorded based on the benefit plan’s actuarially determined pension liability and associated level of annual expenses to be recognized. The other postretirement benefit plan’s deferred benefit cost is the excess of the other postretirement benefit liability over the amount previously recognized. Deferred MISO Costs These consist of administrative costs for transmission services, transmission expansion cost sharing, and certain other operational and administrative costs from the MISO market. These costs are being recovered per specific rate order. Unamortized Petersburg Unit 4 Carrying Charges and Certain Other Costs These consist of deferred debt carrying costs, depreciation, and post-in-service Allowance for Funds Used During Construction ("AFUDC") on Petersburg Unit 4. These costs are being recovered per specific rate order. Unamortized Reaquisition Premium on Debt This regulatory asset represents losses on long-term debt reacquired or redeemed in prior periods that have been deferred. These deferred losses are being amortized over the lives of the original issues in accordance with the rules of the FERC and the IURC. Environmental Costs These consist of various costs incurred to comply with environmental regulations. These costs were approved for recovery either through IPL's ECCRA proceedings or in the 2018 Base Rate Order. Amortization periods vary, ranging from 3 to 45 years. COVID-19 Costs These consist of deferred fees (foregone late fees, reconnection fees and disconnection fees), as well as deferred convenience payments and incremental bad debt expense as the result of COVID-19. See " IURC COVID-19 Orders " above for additional discussion. TDSIC Costs These consist of various costs incurred for IPL's approved TDSIC Plan. These costs were approved for recovery through IPL's TDSIC proceedings and amortization periods range from 3 to 31 years. See " TDSIC " above for additional discussion. Petersburg Unit 1 Retirement Costs These consist of the estimated remaining net book value of Petersburg Unit 1 at its anticipated date of retirement. It was determined that the Petersburg Unit 1 retirement became probable, in accordance with ASC 980, in the fourth quarter of 2020. As it is expected that the entire carrying value of the asset will be recoverable through future rates, no loss on abandonment was recorded and the asset was reclassified from net property, plant and equipment to a long-term regulatory asset. See " IRP Filing " above for additional discussion. FTRs In connection with IPL’s participation in MISO, in the second quarter of each year IPL is granted financial instruments that can be converted into cash or FTRs based on IPL’s forecasted peak load for the period. See Note 4 , "Fair Value - Fair Value Hierarchy and Valuation Techniques - Financial Assets - FTRs " for additional information. ARO and Accrued Asset Removal Costs In accordance with ASC 410 and ASC 980, IPL recognizes the amount collected in customer rates for costs of removal that do not have an associated legal retirement obligation as a deferred regulatory liability. This amount is net of the portion of legal ARO costs that is also currently being recovered in rates. Deferred Income Taxes Recoverable/Payable Through Rates A deferred income tax asset or liability is created from a difference in timing of income recognition between tax laws and accounting methods. As a regulated utility, IPL includes in ratemaking the impacts of current income taxes and changes in deferred income tax liabilities or assets. On December 22, 2017, the U.S. federal government enacted the TCJA, which, among other things, reduced the federal corporate income tax rate from 35% to 21%, beginning January 1, 2018. As required by GAAP, on December 31, 2017, IPL remeasured their deferred income tax assets and liabilities using the new tax rate. The impact of the reduction of the income tax rate on deferred income taxes was utilized in the 2018 Base Rate Order to reduce jurisdictional retail rates. Accordingly, IPL has a net regulatory deferred income tax liability of $113.0 million and $122.2 million as of December 31, 2020 and 2019, respectively. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2020 | |
Derivative [Line Items] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | 5. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES We use derivatives principally to manage the interest rate risk associated with refinancing our long-term debt. The derivatives that we use to economically hedge these risks are governed by our risk management policies for forward and futures contracts. Our net positions are continually assessed within our structured hedging programs to determine whether new or offsetting transactions are required. We monitor and value derivative positions monthly as part of our risk management processes. We use published sources for pricing, when possible, to mark positions to market. All of our derivative instruments are used for risk management purposes and are designated as cash flow hedges if they qualify under ASC 815 for accounting purposes. At December 31, 2020 , IPL's outstanding derivative instruments were as follows: Commodity Accounting Treatment (a) Unit Purchases Sales Net Purchases/(Sales) Interest rate hedges Designated USD $ 400,000 $ — $ 400,000 FTRs Not Designated MWh 3,168 — 3,168 (a) Refers to whether the derivative instruments have been designated as a cash flow hedge. Cash Flow Hedges As part of our risk management processes, we identify the relationships between hedging instruments and hedged items, as well as the risk management objective and strategy for undertaking various hedge transactions. The fair values of cash flow hedges determined by current public market prices will continue to fluctuate with changes in market prices up to contract expiration. With the adoption of ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted improvements to Accounting for Hedging Activities effective January 1, 2019, we are no longer required to calculate effectiveness and thus the entire change in the fair value of a hedging instrument is now recorded in other comprehensive income and amounts deferred are reclassified to earnings in the same income statement line as the hedged item in the period in which it settles. In March 2019, we entered into three forward interest rate swaps to hedge the interest risk associated with refinancing the IPALCO 2020 maturities. The three interest rate swaps had a combined notional amount of $400.0 million. In April 2020, we de-designated the swaps as cash flow hedges and froze the AOCL of $72.3 million at the date of de-designation. The interest rate swaps were then amended and re-designated as cash flow hedges to hedge the interest rate risk associated with refinancing the 2024 IPALCO Notes. The amended interest rate swaps have a combined notional amount of $400.0 million and will be settled when the 2024 IPALCO Notes are refinanced. The $72.3 million of AOCL associated with the interest rate swaps through the date of the amendment will be amortized out of AOCL into interest expense over the remaining life of the 2030 IPALCO Notes, while any changes in fair value associated with the amended interest rate swaps will be recognized in AOCL going forward. The following tables provide information on gains or losses recognized in AOCL for the cash flow hedges for the periods indicated: Interest Rate Hedges for the Year Ended December 31, $ in thousands (net of tax) 2020 2019 2018 Beginning accumulated derivative gain / (loss) in AOCL $ (19,750) $ — $ — Net losses associated with current period hedging transactions (27,779) (19,750) — Net losses reclassified to interest expense, net of tax 4,109 — — Ending accumulated derivative loss in AOCL $ (43,420) $ (19,750) $ — Loss expected to be reclassified to earnings in the next twelve months $ (5,375) Maximum length of time that we are hedging our exposure to variability in future cash flows related to forecasted transactions (in months) 45 Derivatives Not Designated as Hedge FTRs do not qualify for hedge accounting or the normal purchases and sales exceptions under ASC 815. Accordingly, such contracts are recorded at fair value when acquired and subsequently amortized over the annual period as they are used. FTRs are initially recorded at fair value using the income approach. Certain qualifying derivative instruments have been designated as normal purchases or normal sales contracts, as provided under GAAP. Derivative contracts that have been designated as normal purchases or normal sales under GAAP are not subject to hedge or mark to market accounting and are recognized in the consolidated statements of operations on an accrual basis. When applicable, IPALCO has elected not to offset derivative assets and liabilities and not to offset net derivative positions against the right to reclaim cash collateral pledged (an asset) or the obligation to return cash collateral received (a liability) under derivative agreements. As of December 31, 2020, IPALCO had $6.1 million of collateral in a broker margin account which offsets our loss positions on the interest rate hedges. The following table summarizes the fair value, balance sheet classification and hedging designation of IPALCO's derivative instruments: December 31, Commodity Hedging Designation Balance sheet classification 2020 2019 Financial transmission rights Not a Cash Flow Hedge Prepayments and other current assets $ 543 $ 864 Interest rate hedges Cash Flow Hedge Derivative liabilities, current $ — $ 26,560 Interest rate hedges Cash Flow Hedge Derivative liabilities, non-current $ 63,215 $ — |
Subsidiaries [Member] | |
Derivative [Line Items] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | 5. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES We use derivatives principally to manage the interest rate risk associated with refinancing our long-term debt. The derivatives that we use to economically hedge these risks are governed by our risk management policies for forward and futures contracts. Our net positions are continually assessed within our structured hedging programs to determine whether new or offsetting transactions are required. We monitor and value derivative positions monthly as part of our risk management processes. We use published sources for pricing, when possible, to mark positions to market. All of our derivative instruments are used for risk management purposes and are designated as cash flow hedges if they qualify under ASC 815 for accounting purposes. At December 31, 2020 , IPL's outstanding derivative instruments were as follows: Commodity Accounting Treatment (a) Unit Purchases Sales Net Purchases/(Sales) FTRs Not Designated MWh 3,168 — 3,168 (a) Refers to whether the derivative instruments have been designated as a cash flow hedge. Derivatives Not Designated as Hedge FTRs do not qualify for hedge accounting or the normal purchases and sales exceptions under ASC 815. Accordingly, such contracts are recorded at fair value when acquired and subsequently amortized over the annual period as they are used. FTRs are initially recorded at fair value using the income approach. Certain qualifying derivative instruments have been designated as normal purchases or normal sales contracts, as provided under GAAP. Derivative contracts that have been designated as normal purchases or normal sales under GAAP are not subject to hedge or mark to market accounting and are recognized in the consolidated statements of operations on an accrual basis. When applicable, IPL has elected not to offset derivative assets and liabilities and not to offset net derivative positions against the right to reclaim cash collateral pledged (an asset) or the obligation to return cash collateral received (a liability) under derivative agreements. As of December 31, 2020, IPL did not have any offsetting positions. The following table summarizes the fair value, balance sheet classification and hedging designation of IPL's derivative instruments: December 31, Commodity Hedging Designation Balance sheet classification 2020 2019 Financial transmission rights Not a Cash Flow Hedge Prepayments and other current assets $ 543 $ 864 |
Equity
Equity | 12 Months Ended |
Dec. 31, 2020 | |
Entity Information [Line Items] | |
Equity | EQUITY Dividend Restrictions IPL’s mortgage and deed of trust and its amended articles of incorporation contain restrictions on IPL’s ability to issue certain securities or pay cash dividends. So long as any of the several series of bonds of IPL issued under its mortgage remains outstanding, and subject to certain exceptions, IPL is restricted in the declaration and payment of dividends, or other distribution on shares of its capital stock of any class, or in the purchase or redemption of such shares, to the aggregate of its net income, as defined in the mortgage, after December 31, 1939. In addition, pursuant to IPL’s articles, no dividends may be paid or accrued, and no other distribution may be made on IPL’s common stock unless dividends on all outstanding shares of IPL preferred stock have been paid or declared and set apart for payment. As of December 31, 2020, and as of the filing of this report, IPL was in compliance with these restrictions. IPL is also restricted in its ability to pay dividends if it is in default under the terms of its Credit Agreement, which could happen if IPL fails to comply with certain covenants. These covenants, among other things, require IPL to maintain a ratio of total debt to total capitalization not in excess of 0.67 to 1. As of December 31, 2020. and as of the filing of this report, IPL was in compliance with all covenants and no event of default existed. IPALCO’s Third Amended and Restated Articles of Incorporation contain provisions which state that IPALCO may not make a distribution to its shareholders or make a loan to any of its affiliates (other than its subsidiaries), unless: (a) there exists no event of default (as defined in the articles) and no such event of default would result from the making of the distribution or loan; and either (b)(i) at the time of, and/or as a result of, the distribution or loan, IPALCO’s leverage ratio does not exceed 0.67 to 1 and IPALCO’s interest coverage ratio is not less than 2.50 to 1 or, (b)(ii) if such ratios are not within the parameters, IPALCO’s senior long-term debt rating from one of the three major credit rating agencies is at least investment grade. As of December 31, 2020, and as of the filing of this report, IPALCO was in compliance with all covenants and no event of default existed. During the years ended December 31, 2020, 2019 and 2018, IPALCO declared and paid distributions to its shareholders totaling $108.7 million, $136.4 million and $130.2 million, respectively. Cumulative Preferred Stock IPL has five separate series of cumulative preferred stock. Holders of preferred stock are entitled to receive dividends at rates per annum ranging from 4.0% to 5.65%. During each year ended December 31, 2020, 2019 and 2018, total preferred stock dividends declared were $3.2 million. Holders of preferred stock are entitled to two votes per share for IPL matters, and if four full quarterly dividends are in default on all shares of the preferred stock then outstanding, they are entitled to elect the smallest number of IPL directors to constitute a majority of IPL’s Board of Directors. Based on the preferred stockholders’ ability to elect a majority of IPL’s Board of Directors in this circumstance, the redemption of the preferred shares is considered to be not solely within the control of the issuer and the preferred stock was considered temporary equity and presented in the mezzanine level of the audited consolidated balance sheets in accordance with the relevant accounting guidance for non-controlling interests and redeemable securities. IPL has issued and outstanding 500,000 shares of 5.65% preferred stock, which are now redeemable at par value, subject to certain restrictions, in whole or in part. Additionally, IPL has 91,353 shares of preferred stock which are redeemable solely at the option of IPL and can be redeemed in whole or in part at any time at specific call prices. At December 31, 2020, 2019 and 2018, preferred stock consisted of the following: December 31, 2020 December 31, Shares Call Price 2020 2019 2018 Par Value, plus premium, if applicable (In Thousands) Cumulative $100 par value, authorized 2,000,000 shares 4% Series 47,611 $ 118.00 $ 5,410 $ 5,410 $ 5,410 4.2% Series 19,331 $ 103.00 1,933 1,933 1,933 4.6% Series 2,481 $ 103.00 248 248 248 4.8% Series 21,930 $ 101.00 2,193 2,193 2,193 5.65% Series 500,000 $ 100.00 50,000 50,000 50,000 Total cumulative preferred stock 591,353 $ 59,784 $ 59,784 $ 59,784 |
Indianapolis Power And Light Company | |
Entity Information [Line Items] | |
Equity | EQUITY Paid In Capital and Capital Stock IPL had capital contributions from IPALCO of $0.0 million, $0.0 million and $65.0 million for the years ended December 31, 2020, 2019 and 2018, respectively. All of the outstanding common stock of IPL is owned by IPALCO. IPL’s common stock is pledged under the 2024 IPALCO Notes and 2030 IPALCO Notes. There have been no changes in the capital stock of IPL during the three years ended December 31, 2020. Dividend Restrictions IPL’s mortgage and deed of trust and its amended articles of incorporation contain restrictions on IPL’s ability to issue certain securities or pay cash dividends. So long as any of the several series of bonds of IPL issued under its mortgage remains outstanding, and subject to certain exceptions, IPL is restricted in the declaration and payment of dividends, or other distribution on shares of its capital stock of any class, or in the purchase or redemption of such shares, to the aggregate of its net income, as defined in the mortgage, after December 31, 1939. In addition, pursuant to IPL’s articles, no dividends may be paid or accrued, and no other distribution may be made on IPL’s common stock unless dividends on all outstanding shares of IPL preferred stock have been paid or declared and set apart for payment. As of December 31, 2020, and as of the filing of this report, IPL was in compliance with these restrictions. IPL is also restricted in its ability to pay dividends if it is in default under the terms of its Credit Agreement, which could happen if IPL fails to comply with certain covenants. These covenants, among other things, require IPL to maintain a ratio of total debt to total capitalization not in excess of 0.67 to 1. As of December 31, 2020, and as of the filing of this report, IPL was in compliance with all covenants and no event of default existed. During the years ended December 31, 2020, 2019 and 2018, IPL declared dividends to its shareholder totaling $140.6 million, $159.0 million, and $156.8 million, respectively. Cumulative Preferred Stock IPL has five separate series of cumulative preferred stock. Holders of preferred stock are entitled to receive dividends at rates per annum ranging from 4.0% to 5.65%. During each year ended December 31, 2020, 2019 and 2018, total preferred stock dividends declared were $3.2 million. Holders of preferred stock are entitled to two votes per share for IPL matters, and if four full quarterly dividends are in default on all shares of the preferred stock then outstanding, they are entitled to elect the smallest number of IPL directors to constitute a majority of IPL’s Board of Directors. Based on the preferred stockholders’ ability to elect a majority of IPL’s Board of Directors in this circumstance, the redemption of the preferred shares is considered to be not solely within the control of the issuer and the preferred stock was considered temporary equity and presented in the mezzanine level of the audited consolidated balance sheets in accordance with the relevant accounting guidance for non-controlling interests and redeemable securities. IPL has issued and outstanding 500,000 shares of 5.65% preferred stock, which are now redeemable at par value, subject to certain restrictions, in whole or in part. Additionally, IPL has 91,353 shares of preferred stock which are redeemable solely at the option of IPL and can be redeemed in whole or in part at any time at specific call prices. At December 31, 2020, 2019 and 2018, preferred stock consisted of the following: December 31, 2020 December 31, Shares Call Price 2020 2019 2018 Par Value, plus premium, if applicable (In Thousands) Cumulative $100 par value, authorized 2,000,000 shares 4% Series 47,611 $ 118.00 $ 5,410 $ 5,410 $ 5,410 4.2% Series 19,331 $ 103.00 1,933 1,933 1,933 4.6% Series 2,481 $ 103.00 248 248 248 4.8% Series 21,930 $ 101.00 2,193 2,193 2,193 5.65% Series 500,000 $ 100.00 50,000 50,000 50,000 Total cumulative preferred stock 591,353 $ 59,784 $ 59,784 $ 59,784 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2020 | |
Entity Information [Line Items] | |
Debt | DEBT Long-Term Debt The following table presents our long-term debt: December 31, Series Due 2020 2019 (In Thousands) IPL first mortgage bonds: 3.875% (1) August 2021 $ 55,000 $ 55,000 3.875% (1) August 2021 40,000 40,000 3.125% (1) 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 350,000 350,000 4.875% November 2048 105,000 105,000 0.75% (2) April 2026 30,000 — 0.95% (2) April 2026 60,000 — Unamortized discount – net (6,006) (6,156) Deferred financing costs (17,384) (16,629) Total IPL first mortgage bonds 1,780,410 1,691,015 IPL unsecured debt: Variable (3) December 2020 — 30,000 Variable (3) December 2020 — 60,000 Deferred financing costs — (114) Total IPL unsecured debt — 89,886 Total long-term debt – IPL 1,780,410 1,780,901 Long-term debt – IPALCO: Term Loan July 2020 — 65,000 3.45% Senior Secured Notes July 2020 — 405,000 3.70% Senior Secured Notes September 2024 405,000 405,000 4.25% Senior Secured Notes May 2030 475,000 — Unamortized discount – net (625) (313) Deferred financing costs (8,600) (3,959) Total long-term debt – IPALCO 870,775 870,728 Total consolidated IPALCO long-term debt 2,651,185 2,651,629 Less: current portion of long-term debt 94,907 559,199 Net consolidated IPALCO long-term debt $ 2,556,278 $ 2,092,430 (1) First mortgage bonds issued to the Indiana Finance Authority, to secure the loan of proceeds from tax-exempt bonds issued by the Indiana Finance Authority. (2) Unsecured notes 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 were subject to a mandatory put in December 2020. (3) First mortgage bonds issued to the Indiana Finance Authority, to secure the loan of proceeds from tax-exempt bonds issued by the Indiana Finance Authority. The notes have a final maturity date of December 2038, but are subject to a mandatory put in April 2026. Debt Maturities Maturities on long-term indebtedness subsequent to December 31, 2020, are as follows: Year Amount (In Thousands) 2021 $ 95,000 2022 — 2023 — 2024 445,000 2025 — Thereafter 2,143,800 Total $ 2,683,800 Significant Transactions IPL First Mortgage Bonds and Recent Indiana Finance Authority Bond Issuances The mortgage and deed of trust of IPL, together with the supplemental indentures thereto, secure the first mortgage bonds issued by IPL. Pursuant to the terms of the mortgage, substantially all property owned by IPL is subject to a first mortgage lien securing indebtedness of $1,803.8 million as of December 31, 2020. The IPL first mortgage bonds require net earnings as calculated thereunder be at least two and one-half times the annual interest requirements before additional bonds can be authenticated on the basis of property additions. IPL was in compliance with such requirements as of December 31, 2020. In December 2020, the Indiana Finance Authority issued on behalf of IPL an aggregate principal amount of $90 million of Environmental Facilities Refunding Revenue Bonds, Series 2020A&B due December 2038. IPL issued $90 million aggregate principal amount of first mortgage bonds to the Indiana Finance Authority in two series: $30 million Series 2020A notes at 0.75% and $60 million Series 2020B notes at 0.95% to secure the loan of proceeds from these bonds issued by the Indiana Finance Authority. These bonds are subject to a mandatory put date of April 1, 2026. Proceeds of the bonds were used to refund $90 million of Indiana Finance Authority Environmental Facilities Refunding Revenue Bonds Series 2015A&B. IPL has $95 million of 3.875% IPL first mortgage bonds that are due August 1, 2021. Management plans to refinance these first mortgage bonds with new debt. In the event that we are unable to refinance these first mortgage bonds on acceptable terms, IPL has available borrowing capacity on its revolving credit facility that could be used to satisfy the obligation. IPALCO’s Senior Secured Notes and Term Loan In April 2020, IPALCO completed the sale of the $475 million aggregate principal amount of 4.25% 2030 IPALCO Notes pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended. We used the net proceeds from this offering to retire the $65 million Term Loan on April 14, 2020. The remaining net proceeds, together with cash on hand, were used to redeem the 2020 IPALCO Notes on May 14, 2020, and to pay certain related fees, expenses and make-whole premiums. A loss on early extinguishment of debt of $2.4 million for the 2020 IPALCO Notes is included as a separate line item within " Other Income/(Expense), Net " in the accompanying Consolidated Statements of Operations. The 2030 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 also agreed to register the 2030 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 dated April 14, 2020. Line of Credit IPL entered into an amendment and restatement of its 5-year $250 million revolving credit facility on June 19, 2019 with a syndication of bank lenders. This Credit Agreement is an unsecured committed line of credit to be used: (i) to finance capital expenditures; (ii) to refinance certain existing indebtedness, (iii) to support working capital; and (iv) for general corporate purposes. This agreement matures on June 19, 2024, 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 June 19, 2023, subject to approval by the lenders. The Credit Agreement also includes two one-year extension options, allowing IPL to extend the maturity date subject to approval by the lenders. Prior to execution, IPL and IPALCO had existing general banking relationships with the parties to the Credit Agreement. As of December 31, 2020 and 2019, IPL had $75.0 million and $0.0 million in outstanding borrowings on the committed line of credit, respectively. Restrictions on Issuance of Debt All of IPL’s long-term borrowings must first be approved by the IURC and the aggregate amount of IPL’s short-term indebtedness must be approved by the FERC. IPL has approval from FERC to borrow up to $500 million of short-term indebtedness outstanding at any time through July 26, 2022. In December 2018, IPL received an order from the IURC granting IPL authority through December 31, 2021 to, among other things, issue up to $350 million in aggregate principal amount of long-term debt, all of which authority remains available as of December 31, 2020, and refinance up to $185 million in existing indebtedness, of which $95 million of authority remains available under the order as of December 31, 2020. This order also grants IPL authority to have up to $500 million of long-term credit agreements and liquidity facilities outstanding at any one time, of which $250.0 million remains available under the order as of December 31, 2020. As an alternative to the sale of all or a portion of $65 million in principal of the long-term debt mentioned above, we have the authority to issue up to $65 million of new preferred stock, all of which authority remains available under the order as of December 31, 2020. IPL also has restrictions on the amount of new debt that may be issued due to contractual obligations of AES and by financial covenant restrictions under our existing debt obligations. Under such restrictions, IPL is generally allowed to fully draw the amounts available on its Credit Agreement, refinance existing debt and issue new debt approved by the IURC and issue certain other indebtedness. Credit Ratings Our ability to borrow money or to refinance existing indebtedness and the interest rates at which we can borrow money or refinance existing indebtedness are affected by our credit ratings. In addition, the applicable interest rates on IPL’s Credit Agreement are dependent upon the credit ratings of IPL. Downgrades in the credit ratings of AES could result in IPL’s and/or IPALCO’s credit ratings being downgraded. |
Indianapolis Power And Light Company | |
Entity Information [Line Items] | |
Debt | . DEBT Long-Term Debt The following table presents IPL’s long-term debt: December 31, Series Due 2020 2019 (In Thousands) IPL first mortgage bonds: 3.875% (1) August 2021 $ 55,000 $ 55,000 3.875% (1) August 2021 40,000 40,000 3.125% (1) 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 350,000 350,000 4.875% November 2048 105,000 105,000 0.75% (2) April 2026 30,000 — 0.95% (2) April 2026 60,000 — Unamortized discount – net (6,006) (6,156) Deferred financing costs (17,384) (16,629) Total IPL first mortgage bonds 1,780,410 1,691,015 IPL unsecured debt: Variable (3) December 2020 — 30,000 Variable (3) December 2020 — 60,000 Deferred financing costs — (114) Total IPL unsecured debt — 89,886 Total consolidated IPL long-term debt 1,780,410 1,780,901 Less: current portion of long-term debt 94,907 89,886 Net consolidated IPL long-term debt $ 1,685,503 $ 1,691,015 (1) First mortgage bonds issued to the Indiana Finance Authority, to secure the loan of proceeds from tax-exempt bonds issued by the Indiana Finance Authority. (2) Unsecured notes 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 were subject to a mandatory put in December 2020. (3) First mortgage bonds issued to the Indiana Finance Authority, to secure the loan of proceeds from tax-exempt bonds issued by the Indiana Finance Authority. The notes have a final maturity date of December 2038, but are subject to a mandatory put in April 2026. Debt Maturities Maturities on long-term indebtedness subsequent to December 31, 2020, are as follows: Year Amount (In Thousands) 2021 $ 95,000 2022 — 2023 — 2024 40,000 2025 — Thereafter 1,668,800 Total $ 1,803,800 Significant Transactions IPL First Mortgage Bonds and Recent Indiana Finance Authority Bond Issuances The mortgage and deed of trust of IPL, together with the supplemental indentures thereto, secure the first mortgage bonds issued by IPL. Pursuant to the terms of the mortgage, substantially all property owned by IPL is subject to a first mortgage lien securing indebtedness of $1,803.8 million as of December 31, 2020. The IPL first mortgage bonds require net earnings as calculated thereunder be at least two and one-half times the annual interest requirements before additional bonds can be authenticated on the basis of property additions. IPL was in compliance with such requirements as of December 31, 2020. In December 2020, the Indiana Finance Authority issued on behalf of IPL an aggregate principal amount of $90 million of Environmental Facilities Refunding Revenue Bonds, Series 2020A&B due December 2038. IPL issued $90 million aggregate principal amount of first mortgage bonds to the Indiana Finance Authority in two series: $30 million Series 2020A notes at 0.75% and $60 million Series 2020B notes at 0.95% to secure the loan of proceeds from these bonds issued by the Indiana Finance Authority. These bonds are subject to a mandatory put date of April 1, 2026. Proceeds of the bonds were used to refund $90 million of Indiana Finance Authority Environmental Facilities Refunding Revenue Bonds Series 2015A&B. IPL has $95 million of 3.875% IPL first mortgage bonds that are due August 1, 2021. Management plans to refinance these first mortgage bonds with new debt. In the event that we are unable to refinance these first mortgage bonds on acceptable terms, IPL has available borrowing capacity on its revolving credit facility that could be used to satisfy the obligation. Line of Credit IPL entered into an amendment and restatement of its 5-year $250 million revolving credit facility on June 19, 2019 with a syndication of bank lenders. This Credit Agreement is an unsecured committed line of credit to be used: (i) to finance capital expenditures; (ii) to refinance certain existing indebtedness, (iii) to support working capital; and (iv) for general corporate purposes. This agreement matures on June 19, 2024, 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 June 19, 2023, subject to approval by the lenders. The Credit Agreement also includes two one-year extension options, allowing IPL to extend the maturity date subject to approval by the lenders. Prior to execution, IPL had existing general banking relationships with the parties to the Credit Agreement. As of December 31, 2020 and 2019, IPL had $75.0 million and $0.0 million in outstanding borrowings on the committed line of credit, respectively. Restrictions on Issuance of Debt All of IPL’s long-term borrowings must first be approved by the IURC and the aggregate amount of IPL’s short-term indebtedness must be approved by the FERC. IPL has approval from FERC to borrow up to $500 million of short-term indebtedness outstanding at any time through July 26, 2022. In December 2018, IPL received an order from the IURC granting IPL authority through December 31, 2021 to, among other things, issue up to $350 million in aggregate principal amount of long-term debt, all of which authority remains available as of December 31, 2020, and refinance up to $185 million in existing indebtedness, of which $95 million of authority remains available under the order as of December 31, 2020. This order also grants IPL authority to have up to $500 million of long-term credit agreements and liquidity facilities outstanding at any one time, of which $250.0 million remains available under the order as of December 31, 2020. As an alternative to the sale of all or a portion of $65 million in principal of the long-term debt mentioned above, we have the authority to issue up to $65 million of new preferred stock, all of which authority remains available under the order as of December 31, 2020. IPL also has restrictions on the amount of new debt that may be issued due to contractual obligations of AES and by financial covenant restrictions under our existing debt obligations. Under such restrictions, IPL is generally allowed to fully draw the amounts available on its Credit Agreement, refinance existing debt and issue new debt approved by the IURC and issue certain other indebtedness. Credit Ratings IPL’s ability to borrow money or to refinance existing indebtedness and the interest rates at which IPL can borrow money or refinance existing indebtedness are affected by IPL’s credit ratings. In addition, the applicable interest rates on IPL’s Credit Agreement are dependent upon the credit ratings of IPL. Downgrades in the credit ratings of AES and/or IPALCO could result in IPL’s credit ratings being downgraded. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Entity Information [Line Items] | |
Income Taxes | INCOME TAXES IPALCO follows a policy of comprehensive interperiod income tax allocation. Investment tax credits related to utility property have been deferred and are being amortized over the estimated useful lives of the related property. AES files federal and state income tax returns which consolidate IPALCO and its subsidiaries. Under a tax sharing agreement with AES, IPALCO is responsible for the income taxes associated with its own taxable income and records the provision for income taxes as if IPALCO and its subsidiaries each filed separate income tax returns. IPALCO is no longer subject to U.S. or state income tax examinations for tax years through March 27, 2001, but is open for all subsequent periods. IPALCO made tax sharing payments to AES of $27.0 million, $29.6 million and $28.3 million in 2020, 2019 and 2018, respectively. On March 25, 2014, the state of Indiana amended Indiana Code 6-3-2-1 through Senate Bill 001, which phases in an additional 1.6% reduction to the state corporate income tax rate that was initially being reduced by 2%. While the statutory state income tax rate decreased to 5.375% for the calendar year 2020, the deferred tax balances were adjusted according to the anticipated reversal of temporary differences. The change in required deferred taxes on plant and plant-related temporary differences resulted in a reduction to the associated regulatory asset of $1.3 million. The change in required deferred taxes on non-property related temporary differences which are not probable to cause a reduction in future base customer rates resulted in a tax benefit of $0.1 million. The statutory state corporate income tax rate will be 5.075% for 2021. Income Tax Provision Federal and state income taxes charged to income are as follows: 2020 2019 2018 (In Thousands) Components of income tax expense: Current income taxes: Federal $ 19,489 $ 17,229 $ 20,341 State 6,249 3,022 8,843 Total current income taxes 25,738 20,251 29,184 Deferred income taxes: Federal 323 7,547 (15,150) State 2,531 7,745 326 Total deferred income taxes 2,854 15,292 (14,824) Net amortization of investment credit — (15) (911) Total income tax expense $ 28,592 $ 35,528 $ 13,449 Effective and Statutory Rate Reconciliation The provision for income taxes (including net investment tax credit adjustments) is different than the amount computed by applying the statutory tax rate to pretax income. The reasons for the difference, stated as a percentage of pretax income, are as follows: 2020 2019 2018 Federal statutory tax rate 21.0 % 21.0 % 21.0 % State income tax, net of federal tax benefit 4.2 % 4.4 % 5.6 % Research and development credit — % — % (1.9) % Depreciation flow through and amortization (6.8) % (5.7) % (15.6) % Additional funds used during construction - equity 1.0 % 0.2 % 0.3 % Other – net 1.2 % 1.3 % (0.3) % Effective tax rate 20.6 % 21.2 % 9.1 % Deferred Income Taxes The significant items comprising IPALCO’s net accumulated deferred tax liability recognized on the audited Consolidated Balance Sheets as of December 31, 2020 and 2019, are as follows: 2020 2019 (In Thousands) Deferred tax liabilities: Relating to utility property, net $ 408,291 $ 411,182 Regulatory assets recoverable through future rates 82,783 69,156 Other 5,485 6,192 Total deferred tax liabilities 496,559 486,530 Deferred tax assets: Investment tax credit 6 7 Regulatory liabilities including ARO 197,657 191,676 Employee benefit plans 3,866 8,545 Other 19,316 13,441 Total deferred tax assets 220,845 213,669 Deferred income tax liability – net $ 275,714 $ 272,861 Uncertain Tax Positions The following is a reconciliation of the beginning and ending amounts of unrecognized tax benefits for the years ended December 31, 2020, 2019 and 2018: 2020 2019 2018 (In Thousands) Unrecognized tax benefits at January 1 $ 7,056 $ 7,056 $ 7,049 Gross increases – current period tax positions 312 — — Gross decreases – prior period tax positions — — 7 Unrecognized tax benefits at December 31 $ 7,368 $ 7,056 $ 7,056 The unrecognized tax benefits at December 31, 2020 represent tax positions for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. Because of the impact of deferred tax accounting, other than interest and penalties, the timing of the deductions will not affect the annual effective tax rate but would accelerate the tax payments to an earlier period. Tax-related interest expense and income is reported as part of the provision for federal and state income taxes. Penalties, if incurred, would also be recognized as a component of tax expense. There are no interest or penalties applicable to the periods contained in this report. |
Indianapolis Power And Light Company | |
Entity Information [Line Items] | |
Income Taxes | INCOME TAXES IPL follows a policy of comprehensive interperiod income tax allocation. Investment tax credits related to utility property have been deferred and are being amortized over the estimated useful lives of the related property. AES files federal and state income tax returns which consolidate IPALCO and IPL. Under a tax sharing agreement with IPALCO, IPL is responsible for the income taxes associated with its own taxable income and records the provision for income taxes as if IPL filed separate income tax returns. IPL is no longer subject to U.S. or state income tax examinations for tax years through March 27, 2001, but is open for all subsequent periods. IPL made tax sharing payments to IPALCO of $27.0 million, $37.4 million and $33.8 million in 2020, 2019 and 2018, respectively. On March 25, 2014, the state of Indiana amended Indiana Code 6-3-2-1 through Senate Bill 001, which phases in an additional 1.6% reduction to the state corporate income tax rate that was initially being reduced by 2%. While the statutory state income tax rate decreased to 5.375% for the calendar year 2020, the deferred tax balances were adjusted according to the anticipated reversal of temporary differences. The change in required deferred taxes on plant and plant-related temporary differences resulted in a reduction to the associated regulatory asset of $1.3 million. The change in required deferred taxes on non-property related temporary differences which are not probable to cause a reduction in future base customer rates resulted in a tax benefit of $0.1 million. The statutory state corporate income tax rate will be 5.075% for 2021. Income Tax Provision Federal and state income taxes charged to income are as follows: 2020 2019 2018 (In Thousands) Components of income tax expense: Current income taxes: Federal $ 28,395 $ 23,941 $ 26,021 State 8,661 4,370 11,215 Total current income taxes 37,056 28,311 37,236 Deferred income taxes: Federal 503 7,578 (15,080) State 2,576 7,556 345 Total deferred income taxes 3,079 15,134 (14,735) Net amortization of investment credit — (15) (911) Total income tax expense $ 40,135 $ 43,430 $ 21,590 Effective and Statutory Rate Reconciliation The provision for income taxes (including net investment tax credit adjustments) is different than the amount computed by applying the statutory tax rate to pretax income. The reasons for the difference, stated as a percentage of pretax income, are as follows: 2020 2019 2018 Federal statutory tax rate 21.0 % 21.0 % 21.0 % State income tax, net of federal tax benefit 4.2 % 4.4 % 5.6 % Amortization of investment tax credits — % — % (0.5) % Research and development credit — % — % (1.6) % Depreciation flow through and amortization (5.1) % (4.7) % (12.6) % Additional funds used during construction - equity 0.7 % 0.2 % 0.3 % Other – net 1.0 % 0.8 % (0.1) % Effective tax rate 21.8 % 21.7 % 12.1 % Deferred Income Taxes The significant items comprising IPL’s net accumulated deferred tax liability recognized on the audited Consolidated Balance Sheets as of December 31, 2020 and 2019, are as follows: 2020 2019 (In Thousands) Deferred tax liabilities: Relating to utility property, net $ 408,291 $ 411,182 Regulatory assets recoverable through future rates 82,783 69,156 Other 5,323 5,742 Total deferred tax liabilities 496,397 486,080 Deferred tax assets: Investment tax credit 6 7 Regulatory liabilities including ARO 197,657 191,676 Employee benefit plans 3,866 8,556 Other 5,069 6,682 Total deferred tax assets 206,598 206,921 Deferred income tax liability – net $ 289,799 $ 279,159 Uncertain Tax Positions The following is a reconciliation of the beginning and ending amounts of unrecognized tax benefits for the years ended December 31, 2020, 2019 and 2018: 2020 2019 2018 (In Thousands) Unrecognized tax benefits at January 1 $ 7,056 $ 7,056 $ 7,049 Gross increases – current period tax positions 312 — — Gross decreases – prior period tax positions — — 7 Unrecognized tax benefits at December 31 $ 7,368 $ 7,056 $ 7,056 The unrecognized tax benefits at December 31, 2020 represent tax positions for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. Because of the impact of deferred tax accounting, other than interest and penalties, the timing of the deductions will not affect the annual effective tax rate but would accelerate the tax payments to an earlier period. Tax-related interest expense and income is reported as part of the provision for federal and state income taxes. Penalties, if incurred, would also be recognized as a component of tax expense. There are no interest or penalties applicable to the periods contained in this report. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Entity Information [Line Items] | |
Benefit Plans | BENEFIT PLANS Defined Contribution Plans All of IPL’s employees are covered by one of two defined contribution plans, the Thrift Plan or the RSP: The Thrift Plan Approximately 80% of IPL’s active employees are covered by the Thrift Plan, a qualified defined contribution plan. All union new hires are covered under the Thrift Plan. Participants elect to make contributions to the Thrift Plan based on a percentage of their base compensation. Each participant’s contribution is matched up to certain thresholds of base compensation. The IBEW clerical-technical union new hires receive an annual lump sum company contribution into the Thrift Plan in addition to the company match. Employer contributions to the Thrift Plan were $3.4 million, $3.3 million and $3.3 million for 2020, 2019 and 2018, respectively. The RSP Approximately 20% of IPL’s active employees are covered by the RSP, a qualified defined contribution plan containing a match and nondiscretionary component. All non-union new hires are covered under the RSP. Participants elect to make contributions to the RSP based on a percentage of their eligible compensation. Each participant’s contribution is matched in amounts up to, but not exceeding, 5% of the participant’s eligible compensation. Starting in 2018, the RSP also includes a 4% nondiscretionary contribution based as a percentage of each participant's eligible compensation. Employer contributions (by IPL) relating to the RSP were $1.8 million, $1.6 million and $1.7 million for 2020, 2019 and 2018, respectively. Defined Benefit Plans Approximately 72% of IPL’s active employees are covered by the qualified Defined Benefit Pension Plan; while approximately 8% of active employees are IBEW clerical-technical unit employees who are only eligible for the Thrift Plan. The remaining 20% of active employees are covered by the RSP. All non-union new hires are covered under the RSP, while IBEW physical unit union new hires are covered under the Defined Benefit Pension Plan and Thrift Plan. The IBEW clerical-technical unit new hires are no longer covered under the Defined Benefit Pension Plan but do receive an annual lump sum company contribution into the Thrift Plan, in addition to the company match. The Defined Benefit Pension Plan is noncontributory and is funded by IPL through a trust. Benefits for non-union participants in the Defined Benefit Pension Plan are based on salary, years of service and accrued benefits at April 1, 2015. Benefits for eligible union participants are based on each individual employee's pension band and years of service as opposed to their compensation. Pension bands are based primarily on job duties and responsibilities. Additionally, a small group of former officers and their surviving spouses are covered under a funded non-qualified Supplemental Retirement Plan. The total number of participants in the plan as of December 31, 2020 was 22. The plan is closed to new participants. IPL also provides postretirement health care benefits to certain active or retired employees and the spouses of certain active or retired employees. Approximately 142 active employees and 16 retirees (including spouses) were receiving such benefits or entitled to future benefits as of January 1, 2020. The plan is unfunded. These postretirement health care benefits and the related unfunded obligation of $4.3 million and $6.4 million at December 31, 2020 and 2019, respectively, were not material to the consolidated financial statements in the periods covered by this report. The following table presents information relating to the Pension Plans: Pension benefits 2020 2019 (In Thousands) Change in benefit obligation: Projected benefit obligation at January 1 $ 782,795 $ 697,228 Service cost 8,272 7,412 Interest cost 22,151 27,343 Actuarial loss/(gain) 66,827 88,311 Amendments (primarily increases in pension bands) 967 — Benefits paid (38,487) (37,499) Projected benefit obligation at December 31 842,525 782,795 Change in plan assets: Fair value of plan assets at January 1 769,704 684,485 Actual return on plan assets 118,716 122,690 Employer contributions 87 28 Benefits paid (38,487) (37,499) Fair value of plan assets at December 31 850,020 769,704 Funded (unfunded) status $ 7,495 $ (13,091) Amounts recognized in the statement of financial position: Non-current assets $ 8,669 $ — Non-current liabilities (1,174) (13,091) Net amount recognized at end of year $ 7,495 $ (13,091) Sources of change in regulatory assets (1) : Prior service cost arising during period $ 967 $ — Net (gain)/loss arising during period (14,110) (4,472) Amortization of prior service cost (3,677) (3,823) Amortization of loss (8,115) (11,084) Total recognized in regulatory assets $ (24,935) $ (19,379) Amounts included in regulatory assets: Net loss $ 145,526 $ 167,750 Prior service cost 11,613 14,323 Total amounts included in regulatory assets $ 157,139 $ 182,073 (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 not yet recognized as components of net periodic benefit costs. Information for Pension Plans with a projected benefit obligation in excess of plan assets Pension benefits 2020 2019 (In Thousands) Benefit obligation $ 842,525 $ 782,795 Plan assets 850,020 769,704 Benefit obligation in excess of plan assets $ (7,495) $ 13,091 IPL’s total plan assets in excess of projected benefit obligation was $7.5 million as of December 31, 2020 ($8.7 million Defined Benefit Pension Plan plan assets in excess of projected benefit obligation, partially offset by $1.2 million Supplemental Retirement Plan projected benefit obligation in excess of plan assets). Information for Pension Plans with an accumulated benefit obligation in excess of plan assets Pension benefits 2020 2019 (In Thousands) Accumulated benefit obligation $ 830,458 $ 771,592 Plan assets 850,020 769,704 Accumulated benefit obligation in excess of plan assets $ (19,562) $ 1,888 IPL’s total plan assets in excess of accumulated benefit obligation was $19.6 million as of December 31, 2020 ($20.7 million Defined Benefit Pension Plan plan assets in excess of accumulated benefit obligation, partially offset by $1.1 million Supplemental Retirement Plan accumulated benefit obligation in excess of plan assets). Significant Gains and Losses Related to Changes in the Benefit Obligation for the Period As shown in the table above, an actuarial loss of $66.8 million increased the benefit obligation for the year ended December 31, 2020 and an actuarial loss of $88.3 million increased the benefit obligation for the year ended December 31, 2019. The actuarial losses in 2020 and 2019 were primarily due to decreases in the discount rate. Pension Benefits and Expense Reported expenses relevant to the Defined Benefit Pension Plan are dependent upon numerous factors resulting from actual plan experience and assumptions of future experience, including the performance of plan assets and actual benefits paid out in future years. Pension costs associated with the Defined Benefit Pension Plan are impacted by the level of contributions made to the plan, earnings on plan assets, the adoption of new mortality tables, and employee demographics, including age, job responsibilities, salary and employment periods. Changes made to the provisions of the Defined Benefit Pension Plan may impact current and future pension costs. Pension costs may also be significantly affected by changes in key actuarial assumptions, including anticipated rates of return on plan assets and the corporate bond discount rates, as well as, the adoption of a new mortality table used in determining the projected benefit obligation and pension costs. The 2020 net actuarial gain of $14.1 million recognized in regulatory assets is comprised of two parts: (1) an $80.9 million pension asset actuarial gain primarily due to higher than expected return on assets; partially offset by (2) a $66.8 million pension liability actuarial loss primarily due to a decrease in the discount rate used to value pension liabilities. The unrecognized net loss of $145.5 million in the Pension Plans has accumulated over time primarily due to the long-term declining trend in corporate bond rates and the adoption of new mortality tables which increased the expected benefit obligation due to the longer expected lives of plan participants. During 2020, the accumulated net gain increased due to lower discount rates used to value pension liabilities, which was partially offset by a combination of higher than expected return on pension assets, as well as the year 2020 amortization of accumulated loss. The unrecognized net loss, to the extent that it exceeds 10% of the greater of the benefit obligation or the assets, will be amortized and included as a component of net periodic benefit cost in future years. The amortization period is approximately 10.84 years based on estimated demographic data as of December 31, 2020. The projected benefit obligation of $842.5 million less the fair value of assets of $850.0 million results in an overfunded status of $7.5 million at December 31, 2020. Pension benefits for 2020 2019 2018 (In Thousands) Components of net periodic benefit cost: Service cost $ 8,272 $ 7,412 $ 8,450 Interest cost 22,151 27,343 25,220 Expected return on plan assets (37,779) (29,907) (40,801) Amortization of prior service cost 3,677 3,823 3,837 Recognized actuarial loss 8,115 11,084 11,403 Recognized settlement loss — — 1,230 Total pension cost 4,436 19,755 9,339 Less: amounts capitalized 372 1,237 1,223 Amount charged to expense $ 4,064 $ 18,518 $ 8,116 Rates relevant to each year’s expense calculations: Discount rate – defined benefit pension plan 3.33 % 4.36 % 3.67 % Discount rate – supplemental retirement plan 3.05 % 4.24 % 3.60 % Expected return on defined benefit pension plan assets 5.05 % 4.50 % 5.45 % Expected return on supplemental retirement plan assets 4.45 % 4.50 % 5.45 % Pension expense for the following year is determined as of the December 31 measurement date based on the fair value of the Pension Plans’ assets, the expected long-term rate of return on plan assets, a mortality table assumption that reflects the life expectancy of plan participants, and a discount rate used to determine the projected benefit obligation. For 2020, pension expense was determined using an assumed long-term rate of return on plan assets of 5.05% for the Defined Benefit Pension Plan and 4.45% for the Supplemental Retirement Plan. As of the December 31, 2020 measurement date, IPL decreased the discount rate from 3.33% to 2.46% for the Defined Benefit Pension Plan and from 3.05% to 2.31% for the Supplemental Retirement Plan. The discount rate assumptions affect the pension expense determined for 2021. In addition, IPL maintained the expected long-term rate of return on plan assets at 5.05% for the Defined Benefit Pension Plan and decreased the expected long-term rate of return for the Supplemental Retirement Plan from 4.45% to 3.60% for 2021. The expected long-term rate of return assumption affects the pension expense determined for 2021. The effect on 2021 total pension expense of a 25 basis point increase and decrease in the assumed discount rate is $(1.4) million and $1.3 million, respectively. In determining the discount rate to use for valuing liabilities we use the market yield curve on high-quality fixed income investments as of December 31, 2020. We project the expected benefit payments under the plan based on participant data and based on certain assumptions concerning mortality, retirement rates, termination rates, etc. The expected benefit payments for each year are discounted back to the measurement date using the appropriate spot rate for each half-year from the yield curve, thereby obtaining a present value of all expected future benefit payments using the yield curve. Finally, an equivalent single discount rate is determined which produces a present value equal to the present value determined using the full yield curve. Pension Plan Assets and Fair Value Measurements Pension plan assets consist of investments in cash and cash equivalents, government debt securities, and mutual funds (equity and debt). Differences between actual portfolio returns and expected returns may result in increased or reduced pension costs in future periods. Pension costs are determined as of the plans' measurement date of December 31, 2020. Pension costs are determined for the following year based on the market value of pension plan assets, expected employer contributions, a discount rate used to determine the projected benefit obligation and the expected long-term rate of return on plan assets. Fair value is defined under ASC 820 as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e., an exit price). The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded as earned. Dividends are recorded on the ex-dividend date. Net appreciation includes the Pension Plans’ gains and losses on investments bought and sold, as well as held, during the year. A description of the valuation methodologies used for each major class of assets and liabilities measured at fair value follows: • The non-qualified Supplemental Retirement Plan investments have quoted market prices and are categorized as Level 1 in the fair value hierarchy. • The qualified Defined Benefit Pension Plan investments in common collective trusts are valued based on the daily net asset value and are categorized as Level 2 in the fair value hierarchy except for cash and cash equivalents which are categorized as level 1. The primary objective of the Pension Plans’ is to provide a source of retirement income for its participants and beneficiaries, while the primary financial objective is to improve the unfunded status of the Pension Plans. A secondary financial objective is, where possible, to minimize pension expense volatility. The objective is based on a long-term investment horizon, so that interim fluctuations should be viewed with appropriate perspective. There can be no assurance that these objectives will be met. In establishing our expected long-term rate of return assumption, we utilize a methodology developed by the plan’s investment consultant who maintains a capital market assumption model that takes into consideration risk, return and correlation assumptions across asset classes. A combination of quantitative analysis of historical data and qualitative judgment is used to capture trends, structural changes and potential scenarios not reflected in historical data. The result of the analyses is a series of inputs that produce a picture of how the plan consultant believes portfolios are likely to behave through time. Capital market assumptions are intended to reflect the behavior of asset classes observed over several market cycles. Stress assumptions are also examined, since the characteristics of asset classes are constantly changing. A dynamic model is employed to manage the numerous assumptions required to estimate portfolio characteristics under different base currencies, time horizons and inflation expectations. The Pension Plans’ consultant develops forward-looking, long-term capital market assumptions for risk, return and correlations for a variety of global asset classes, interest rates and inflation. These assumptions are created using a combination of historical analysis, current market environment assessment and by applying the consultant’s own judgment. The consultant then determines an equilibrium long-term rate of return. We then take into consideration the investment manager/consultant expenses, as well as any other expenses expected to be paid out of the Pension Plans’ trust. Finally, we have the Pension Plans’ actuary perform a tolerance test of the consultant’s equilibrium expected long-term rate of return. We use an expected long-term rate of return compatible with the actuary’s tolerance level. The following table summarizes the Company’s target pension plan allocation for 2020: Asset Category: Target Allocations Equity Securities 36% Debt Securities 64% Fair Value Measurements at December 31, 2020 (in thousands) Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Asset Category Total (Level 1) (Level 2) % Cash and cash equivalents $ 2,221 $ 2,221 $ — — % Government debt securities 118,255 131 118,124 14 % Mutual fund - equities 323,253 2,839 320,414 38 % Mutual fund - debt 406,291 1,578 404,713 48 % Total $ 850,020 $ 6,769 $ 843,251 100 % Fair Value Measurements at December 31, 2019 (in thousands) Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Asset Category Total (Level 1) (Level 2) % Cash and cash equivalents $ 2,599 $ 2,599 $ — — % Government debt securities 154,798 39 154,759 20 % Mutual fund - equities 214,369 2,744 211,625 28 % Mutual fund - debt 397,938 1,664 396,274 52 % Total (1) $ 769,704 $ 7,046 $ 762,658 100 % (1) In 2019, the qualified Defined Benefit Pension Plan moved all investments except for cash and cash equivalents into collective trusts; therefore, the 2019 balances under the Government debt securities, Mutual fund - equities, and Mutual fund - debt categories shown above as level 2 represent investments through collective trusts. The Defined Benefit Pension Plan has chosen collective trusts for which the underlying investments are mutual funds, mutual funds categories for which debt securities are the primary underlying investment, or real estate in alignment with the target asset allocation. Pension Funding We contributed $0.1 million, $0.0 million, and $30.1 million to the Pension Plans in 2020, 2019 and 2018, respectively. Funding for the qualified Defined Benefit Pension Plan is based upon actuarially determined contributions that take into account the amount deductible for income tax purposes and the minimum contribution required under ERISA, as amended by the Pension Protection Act of 2006, as well as targeted funding levels necessary to meet certain thresholds. From an ERISA funding perspective, IPL’s funded target liability percentage was estimated to be 100%. In general, IPL must contribute the normal service cost earned by active participants during the plan year; however, this amount can be offset by any surplus or credit balance carried by the Pension Plan. The normal cost is expected to be approximately $6.1 million in 2021 (including $0.4 million for plan expenses), which is expected to be fully offset by the surplus amount. Each year thereafter, if the Pension Plans’ underfunding increases to more than the present value of the remaining annual installments, the excess is separately amortized over a seven-year period. IPL does not expect to make an employer contribution for the calendar year 2021. IPL’s funding policy for the Pension Plans is to contribute annually no less than the minimum required by applicable law, and no more than the maximum amount that can be deducted for federal income tax purposes. Benefit payments made from the Pension Plans for the years ended December 31, 2020, 2019 and 2018 were $38.5 million, $37.5 million and $62.1 million, respectively. Expected benefit payments are expected to be paid out of the Pension Plans as follows: Year Pension Benefits (In Thousands) 2021 $ 41,552 2022 42,715 2023 43,371 2024 43,827 2025 44,467 2026 through 2030 224,933 |
Indianapolis Power And Light Company | |
Entity Information [Line Items] | |
Benefit Plans | BENEFIT PLANS Defined Contribution Plans All of IPL’s employees are covered by one of two defined contribution plans, the Thrift Plan or the RSP: The Thrift Plan Approximately 80% of IPL’s active employees are covered by the Thrift Plan, a qualified defined contribution plan. All union new hires are covered under the Thrift Plan. Participants elect to make contributions to the Thrift Plan based on a percentage of their base compensation. Each participant’s contribution is matched up to certain thresholds of base compensation. The IBEW clerical-technical union new hires receive an annual lump sum company contribution into the Thrift Plan in addition to the company match. Employer contributions to the Thrift Plan were $3.4 million, $3.3 million and $3.3 million for 2020, 2019 and 2018, respectively. The RSP Approximately 20% of IPL’s active employees are covered by the RSP, a qualified defined contribution plan containing a match and nondiscretionary and component. All non-union new hires are covered under the RSP. Participants elect to make contributions to the RSP based on a percentage of their eligible compensation. Each participant’s contribution is matched in amounts up to, but not exceeding, 5% of the participant’s eligible compensation. Starting in 2018, the RSP also includes a 4% nondiscretionary contribution based as a percentage of each participant's eligible compensation. Employer contributions (by IPL) relating to the RSP were $1.8 million, $1.6 million and $1.7 million for 2020, 2019 and 2018, respectively. Defined Benefit Plans Approximately 72% of IPL’s active employees are covered by the qualified Defined Benefit Pension Plan; while approximately 8% of active employees are IBEW clerical-technical unit employees who are only eligible for the Thrift Plan. The remaining 20% of active employees are covered by the RSP. All non-union new hires are covered under the RSP, while IBEW physical unit union new hires are covered under the Defined Benefit Pension Plan and Thrift Plan. The IBEW clerical-technical unit new hires are no longer covered under the Defined Benefit Pension Plan but do receive an annual lump sum company contribution into the Thrift Plan, in addition to the company match. The Defined Benefit Pension Plan is noncontributory and is funded by IPL through a trust. Benefits for non-union participants in the Defined Benefit Pension Plan are based on salary, years of service and accrued benefits at April 1, 2015. Benefits for eligible union participants are based on each individual employee's pension band and years of service as opposed to their compensation. Pension bands are based primarily on job duties and responsibilities. Additionally, a small group of former officers and their surviving spouses are covered under a funded non-qualified Supplemental Retirement Plan. The total number of participants in the plan as of December 31, 2020 was 22. The plan is closed to new participants. IPL also provides postretirement health care benefits to certain active or retired employees and the spouses of certain active or retired employees. Approximately 142 active employees and 16 retirees (including spouses) were receiving such benefits or entitled to future benefits as of January 1, 2020. The plan is unfunded. These postretirement health care benefits and the related unfunded obligation of $4.3 million and $6.4 million at December 31, 2020 and 2019, respectively, were not material to the consolidated financial statements in the periods covered by this report. The following table presents information relating to the Pension Plans: Pension benefits 2020 2019 (In Thousands) Change in benefit obligation: Projected benefit obligation at January 1 $ 782,795 $ 697,228 Service cost 8,272 7,412 Interest cost 22,151 27,343 Actuarial loss/(gain) 66,827 88,311 Amendments (primarily increases in pension bands) 967 — Benefits paid (38,487) (37,499) Projected benefit obligation at December 31 842,525 782,795 Change in plan assets: Fair value of plan assets at January 1 769,704 684,485 Actual return on plan assets 118,716 122,690 Employer contributions 87 28 Benefits paid (38,487) (37,499) Fair value of plan assets at December 31 850,020 769,704 Funded (unfunded) status $ 7,495 $ (13,091) Amounts recognized in the statement of financial position: Non-current assets $ 8,669 $ — Non-current liabilities (1,174) (13,091) Net amount recognized at end of year $ 7,495 $ (13,091) Sources of change in regulatory assets (1) : Prior service cost arising during period $ 967 $ — Net (gain)/loss arising during period (14,110) (4,472) Amortization of prior service cost (3,677) (3,823) Amortization of loss (8,115) (11,084) Total recognized in regulatory assets $ (24,935) $ (19,379) Amounts included in regulatory assets: Net loss $ 145,526 $ 167,750 Prior service cost 11,613 14,323 Total amounts included in regulatory assets $ 157,139 $ 182,073 (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 not yet recognized as components of net periodic benefit costs. Information for Pension Plans with a projected benefit obligation in excess of plan assets Pension benefits 2020 2019 (In Thousands) Benefit obligation $ 842,525 $ 782,795 Plan assets 850,020 769,704 Benefit obligation in excess of plan assets $ (7,495) $ 13,091 IPL’s total plan assets in excess of projected benefit obligation was $7.5 million as of December 31, 2020 ($8.7 million Defined Benefit Pension Plan plan assets in excess of projected benefit obligation, partially offset by $1.2 million Supplemental Retirement Plan projected benefit obligation in excess of plan assets). Information for Pension Plans with an accumulated benefit obligation in excess of plan assets Pension benefits 2020 2019 (In Thousands) Accumulated benefit obligation $ 830,458 $ 771,592 Plan assets 850,020 769,704 Accumulated benefit obligation in excess of plan assets $ (19,562) $ 1,888 IPL’s total plan assets in excess of accumulated benefit obligation was $19.6 million as of December 31, 2020 ($20.7 million Defined Benefit Pension Plan plan assets in excess of accumulated benefit obligation, partially offset by $1.1 million Supplemental Retirement Plan accumulated benefit obligation in excess of plan assets). Significant Gains and Losses Related to Changes in the Benefit Obligation for the Period As shown in the table above, an actuarial loss of $66.8 million increased the benefit obligation for the year ended December 31, 2020 and an actuarial loss of $88.3 million increased the benefit obligation for the year ended December 31, 2019. The actuarial losses in 2020 and 2019 were primarily due to decreases in the discount rate. Pension Benefits and Expense Reported expenses relevant to the Defined Benefit Pension Plan are dependent upon numerous factors resulting from actual plan experience and assumptions of future experience, including the performance of plan assets and actual benefits paid out in future years. Pension costs associated with the Defined Benefit Pension Plan are impacted by the level of contributions made to the plan, earnings on plan assets, the adoption of new mortality tables, and employee demographics, including age, job responsibilities, salary and employment periods. Changes made to the provisions of the Defined Benefit Pension Plan may impact current and future pension costs. Pension costs may also be significantly affected by changes in key actuarial assumptions, including anticipated rates of return on plan assets and the corporate bond discount rates, as well as, the adoption of a new mortality table used in determining the projected benefit obligation and pension costs. The 2020 net actuarial gain of $14.1 million recognized in regulatory assets is comprised of two parts: (1) an $80.9 million pension asset actuarial gain primarily due to higher than expected return on assets; partially offset by (2) a $66.8 million pension liability actuarial loss primarily due to a decrease in the discount rate used to value pension liabilities. The unrecognized net loss of $145.5 million in the Pension Plans has accumulated over time primarily due to the long-term declining trend in corporate bond rates and the adoption of new mortality tables which increased the expected benefit obligation due to the longer expected lives of plan participants. During 2020, the accumulated net gain increased due to lower discount rates used to value pension liabilities, which was partially offset by a combination of higher than expected return on pension assets, as well as the year 2020 amortization of accumulated loss. The unrecognized net loss, to the extent that it exceeds 10% of the greater of the benefit obligation or the assets, will be amortized and included as a component of net periodic benefit cost in future years. The amortization period is approximately 10.84 years based on estimated demographic data as of December 31, 2020. The projected benefit obligation of $842.5 million less the fair value of assets of $850.0 million results in an overfunded status of $7.5 million at December 31, 2020. Pension benefits for 2020 2019 2018 (In Thousands) Components of net periodic benefit cost: Service cost $ 8,272 $ 7,412 $ 8,450 Interest cost 22,151 27,343 25,220 Expected return on plan assets (37,779) (29,907) (40,801) Amortization of prior service cost 3,677 3,823 3,837 Recognized actuarial loss 8,115 11,084 11,403 Recognized settlement loss — — 1,230 Total pension cost 4,436 19,755 9,339 Less: amounts capitalized 372 1,237 1,223 Amount charged to expense $ 4,064 $ 18,518 $ 8,116 Rates relevant to each year’s expense calculations: Discount rate – defined benefit pension plan 3.33 % 4.36 % 3.67 % Discount rate – supplemental retirement plan 3.05 % 4.24 % 3.60 % Expected return on defined benefit pension plan assets 5.05 % 4.50 % 5.45 % Expected return on supplemental retirement plan assets 4.45 % 4.50 % 5.45 % Pension expense for the following year is determined as of the December 31 measurement date based on the fair value of the Pension Plans’ assets, the expected long-term rate of return on plan assets, a mortality table assumption that reflects the life expectancy of plan participants, and a discount rate used to determine the projected benefit obligation. For 2020, pension expense was determined using an assumed long-term rate of return on plan assets of 5.05% for the Defined Benefit Pension Plan and 4.45% for the Supplemental Retirement Plan. As of the December 31, 2020 measurement date, IPL decreased the discount rate from 3.33% to 2.46% for the Defined Benefit Pension Plan and from 3.05% to 2.31% for the Supplemental Retirement Plan. The discount rate assumptions affect the pension expense determined for 2021. In addition, IPL maintained the expected long-term rate of return on plan assets at 5.05% for the Defined Benefit Pension Plan and decreased the expected long-term rate of return for the Supplemental Retirement Plan from 4.45% to 3.60% for 2021. The expected long-term rate of return assumption affects the pension expense determined for 2021. The effect on 2021 total pension expense of a 25 basis point increase and decrease in the assumed discount rate is $(1.4) million and $1.3 million, respectively. In determining the discount rate to use for valuing liabilities we use the market yield curve on high-quality fixed income investments as of December 31, 2020. We project the expected benefit payments under the plan based on participant data and based on certain assumptions concerning mortality, retirement rates, termination rates, etc. The expected benefit payments for each year are discounted back to the measurement date using the appropriate spot rate for each half-year from the yield curve, thereby obtaining a present value of all expected future benefit payments using the yield curve. Finally, an equivalent single discount rate is determined which produces a present value equal to the present value determined using the full yield curve. Pension Plan Assets and Fair Value Measurements Pension plan assets consist of investments in cash and cash equivalents, government debt securities, and mutual funds (equity and debt). Differences between actual portfolio returns and expected returns may result in increased or reduced pension costs in future periods. Pension costs are determined as of the plans' measurement date of December 31, 2020. Pension costs are determined for the following year based on the market value of pension plan assets, expected employer contributions, a discount rate used to determine the projected benefit obligation and the expected long-term rate of return on plan assets. Fair value is defined under ASC 820 as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e., an exit price). The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded as earned. Dividends are recorded on the ex-dividend date. Net appreciation includes the Pension Plans’ gains and losses on investments bought and sold, as well as held, during the year. A description of the valuation methodologies used for each major class of assets and liabilities measured at fair value follows: • The non-qualified Supplemental Retirement Plan investments have quoted market prices and are categorized as Level 1 in the fair value hierarchy. • The qualified Defined Benefit Pension Plan investments in common collective trusts are valued based on the daily net asset value and are categorized as Level 2 in the fair value hierarchy except for cash and cash equivalents which are categorized as level 1. The primary objective of the Pension Plans’ is to provide a source of retirement income for its participants and beneficiaries, while the primary financial objective is to improve the unfunded status of the Pension Plans. A secondary financial objective is, where possible, to minimize pension expense volatility. The objective is based on a long-term investment horizon, so that interim fluctuations should be viewed with appropriate perspective. There can be no assurance that these objectives will be met. In establishing IPL’s expected long-term rate of return assumption, we utilize a methodology developed by the plan’s investment consultant who maintains a capital market assumption model that takes into consideration risk, return and correlation assumptions across asset classes. A combination of quantitative analysis of historical data and qualitative judgment is used to capture trends, structural changes and potential scenarios not reflected in historical data. The result of the analyses is a series of inputs that produce a picture of how the plan consultant believes portfolios are likely to behave through time. Capital market assumptions are intended to reflect the behavior of asset classes observed over several market cycles. Stress assumptions are also examined, since the characteristics of asset classes are constantly changing. A dynamic model is employed to manage the numerous assumptions required to estimate portfolio characteristics under different base currencies, time horizons and inflation expectations. The Pension Plans’ consultant develops forward-looking, long-term capital market assumptions for risk, return and correlations for a variety of global asset classes, interest rates and inflation. These assumptions are created using a combination of historical analysis, current market environment assessment and by applying the consultant’s own judgment. The consultant then determines an equilibrium long-term rate of return. IPL then takes into consideration the investment manager/consultant expenses, as well as any other expenses expected to be paid out of the Pension Plans’ trust. Finally, IPL has the Pension Plans’ actuary perform a tolerance test of the consultant’s equilibrium expected long-term rate of return. IPL uses an expected long-term rate of return compatible with the actuary’s tolerance level. The following table summarizes IPL’s target pension plan allocation for 2020: Asset Category: Target Allocations Equity Securities 36% Debt Securities 64% Fair Value Measurements at December 31, 2020 (in thousands) Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Asset Category Total (Level 1) (Level 2) % Cash and cash equivalents $ 2,221 $ 2,221 $ — — % Government debt securities 118,255 131 118,124 14 % Mutual fund - equities 323,253 2,839 320,414 38 % Mutual fund - debt 406,291 1,578 404,713 48 % Total $ 850,020 $ 6,769 $ 843,251 100 % Fair Value Measurements at December 31, 2019 (in thousands) Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Asset Category Total (Level 1) (Level 2) % Cash and cash equivalents $ 2,599 $ 2,599 $ — — % Government debt securities 154,798 39 154,759 20 % Mutual fund - equities 214,369 2,744 211,625 28 % Mutual fund - debt 397,938 1,664 396,274 52 % Total (1) $ 769,704 $ 7,046 $ 762,658 100 % (1) In 2019, the qualified Defined Benefit Pension Plan moved all investments except for cash and cash equivalents into collective trusts; therefore, the 2019 balances under the Government debt securities, Mutual fund - equities, and Mutual fund - debt categories shown above as level 2 represent investments through collective trusts. The Defined Benefit Pension Plan has chosen collective trusts for which the underlying investments are mutual funds, mutual funds categories for which debt securities are the primary underlying investment, or real estate in alignment with the target asset allocation. Pension Funding IPL contributed $0.1 million, $0.0 million, and $30.1 million to the Pension Plans in 2020, 2019 and 2018, respectively. Funding for the qualified Defined Benefit Pension Plan is based upon actuarially determined contributions that take into account the amount deductible for income tax purposes and the minimum contribution required under ERISA, as amended by the Pension Protection Act of 2006, as well as targeted funding levels necessary to meet certain thresholds. From an ERISA funding perspective, IPL’s funded target liability percentage was estimated to be 100%. In general, IPL must contribute the normal service cost earned by active participants during the plan year; however, this amount can be offset by any surplus or credit balance carried by the Pension Plan. The normal cost is expected to be approximately $6.1 million in 2021 (including $0.4 million for plan expenses), which is expected to be fully offset by the surplus amount. Each year thereafter, if the Pension Plans' underfunding increases to more than the present value of the remaining annual installments, the excess is separately amortized over a seven-year period. IPL does not expect to make an employer contribution for the calendar year 2021. IPL’s funding policy for the Pension Plans is to contribute annually no less than the minimum required by applicable law, and no more than the maximum amount that can be deducted for federal income tax purposes. Benefit payments made from the Pension Plans for the years ended December 31, 2020, 2019 and 2018 were $38.5 million, $37.5 million and $62.1 million, respectively. Expected benefit payments are expected to be paid out of the Pension Plans as follows: Year Pension Benefits (In Thousands) 2021 $ 41,552 2022 42,715 2023 43,371 2024 43,827 2025 44,467 2026 through 2030 224,933 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Entity Information [Line Items] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Legal Loss Contingencies IPALCO and IPL are involved in litigation arising in the normal course of business. We accrue for litigation and claims when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. As of December 31, 2020 and 2019, total legal loss contingencies accrued were $13.4 million and $2.6 million, respectively, which were included in “ Accrued and Other Current Liabilities” and " Other Non-Current Liabilities, " respectively, on the accompanying Consolidated Balance Sheets. A significant portion of these accrued liabilities relate to a personal injury legal claim involving injuries to a contractor. We maintain an amount of insurance protection for such litigation that we believe is adequate. While the ultimate outcome of such litigation cannot be predicted with certainty, management believes that final outcomes will not have a material adverse effect on IPALCO’s results of operations, financial condition and cash flows. 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 regulated materials, including ash; the use and discharge of water used in generation boilers and for cooling purposes; 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 and other CAA NOVs In October 2009, IPL received a NOV and Finding of Violation from the EPA pursuant to the CAA Section 113(a). The NOV alleged 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 non-attainment New Source Review (NSR) requirements under the CAA. In addition, on October 1, 2015, IPL received a NOV from the EPA pursuant to CAA Section 113(a) alleging violations of the CAA, the Indiana SIP, and the Title V operating permit related to alleged particulate matter and opacity violations at IPL Petersburg Unit 3. Also, on February 5, 2016, the EPA issued a NOV pursuant to CAA Section 113(a) alleging violations of PSD, non-attainment NSR and other CAA regulations, the Indiana SIP, and the Title V operating permit at Petersburg Generating Station. On August 31, 2020, IPL reached a settlement with the EPA, the DOJ and IDEM resolving the purported violations of the CAA with respect to IPL's four coal-fired generation units currently operating at IPL's Petersburg location. The settlement agreement, in the form of a proposed judicial consent decree, includes, among other items, the following requirements: annual caps on NO x and SO 2 emissions and more stringent emissions limits than IPL's current Title V air permit; payment of civil penalties totaling $1.525 million; a $5 million environmental mitigation project consisting of the construction and operation of a new, non-emitting source of generation at the site; expenditure of $0.325 million on a state-only environmentally beneficial project to preserve local, ecologically-significant lands; and retirement of Units 1 and 2 prior to July 1, 2023. If IPL does not meet this retirement obligation, it must install a Selective Non-Catalytic Reduction System (SNCR) on Unit 4. The proposed Consent Decree is subject to final review and approval by the U.S. District Court for the Southern District of Indiana . On January 14, 2021, the U.S. and Indiana, on behalf of EPA and IDEM, respectively, filed a motion asking the court to enter the proposed Consent Decree, along with the U.S.' response to the adverse public comments on the proposed settlements. IPL has a contingent liability recorded related to these New Source Review and other CAA NOV matters. |
Indianapolis Power And Light Company | |
Entity Information [Line Items] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Legal Loss Contingencies IPL is involved in litigation arising in the normal course of business. We accrue for litigation and claims when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. As of December 31, 2020 and 2019, total legal loss contingencies accrued were $13.4 million and $2.6 million, respectively, which were included in “ Accrued and Other Current Liabilities” and " Other Non-Current Liabilities, " respectively, on the accompanying Consolidated Balance Sheets. A significant portion of these accrued liabilities relate to a personal injury legal claim involving injuries to a contractor. We maintain an amount of insurance protection for such litigation that we believe is adequate. While the ultimate outcome of such litigation cannot be predicted with certainty, management believes that final outcomes will not have a material adverse effect on IPL's results of operations, financial condition and cash flows. Environmental Loss Contingencies IPL is 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 regulated materials, including ash; the use and discharge of water used in generation boilers and for cooling purposes; 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. IPL cannot assure that it has been or will be at all times in full compliance with such laws, regulations and permits. New Source Review and other CAA NOVs In October 2009, IPL received a NOV and Finding of Violation from the EPA pursuant to the CAA Section 113(a). The NOV alleged 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 non-attainment New Source Review (NSR) requirements under the CAA. In addition, on October 1, 2015, IPL received a NOV from the EPA pursuant to CAA Section 113(a) alleging violations of the CAA, the Indiana SIP, and the Title V operating permit related to alleged particulate matter and opacity violations at IPL Petersburg Unit 3. Also, on February 5, 2016, the EPA issued a NOV pursuant to CAA Section 113(a) alleging violations of PSD, non-attainment NSR and other CAA regulations, the Indiana SIP, and the Title V operating permit at Petersburg Generating Station. On August 31, 2020, IPL reached a settlement with the EPA, the DOJ and IDEM resolving the purported violations of the CAA with respect to IPL's four coal-fired generation units currently operating at IPL's Petersburg location. The settlement agreement, in the form of a proposed judicial consent decree, includes, among other items, the following requirements: annual caps on NO x and SO 2 emissions and more stringent emissions limits than IPL's current Title V air permit; payment of civil penalties totaling $1.525 million; a $5 million environmental mitigation project consisting of the construction and operation of a new, non-emitting source of generation at the site; expenditure of $0.325 million on a state-only environmentally beneficial project to preserve local, ecologically-significant lands; and retirement of Units 1 and 2 prior to July 1, 2023. If IPL does not meet this retirement obligation, it must install a Selective Non-Catalytic Reduction System (SNCR) on Unit 4. The proposed Consent Decree is subject to final review and approval by the U.S. District Court for the Southern District of Indiana . On January 14, 2021, the U.S. and Indiana, on behalf of EPA and IDEM, respectively, filed a motion asking the court to enter the proposed Consent Decree, along with the U.S.' response to the adverse public comments on the proposed settlements. IPL has a contingent liability recorded related to these New Source Review and other CAA NOV matters. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Entity Information [Line Items] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS IPL participates in a property insurance program in which IPL buys insurance from AES Global Insurance Company, a wholly-owned subsidiary of AES. IPL is not self-insured on property insurance, but does take a $5 million per occurrence deductible. Except for IPL’s large substations, IPL does not carry insurance on transmission and distribution assets, which are considered to be outside the scope of property insurance. AES and other AES subsidiaries, including IPALCO, also participate in the AES global insurance program. IPL pays premiums for a policy that is written and administered by a third-party insurance company. The premiums paid to this third-party administrator by the participants are paid to AES Global Insurance Company and all claims are paid from a trust fund funded by and owned by AES Global Insurance Company, but controlled by the third-party administrator. IPL also has third-party insurance in which the premiums are paid directly to the third-party insurers. The cost to IPL of coverage under the property insurance program with AES Global Insurance Company was approximately $5.6 million, $4.3 million, and $3.1 million in 2020, 2019 and 2018, respectively, and is recorded in “ Operating expenses - Operation and maintenance” on the accompanying Consolidated Statements of Operations. As of December 31, 2020 and 2019, we had prepaid approximately $2.3 million and $2.0 million, respectively, for coverage under these plans, which is recorded in " Prepayments and other current assets " on the accompanying Consolidated Balance Sheets. IPL participates in an agreement with Health and Welfare Benefit Plans LLC, an affiliate of AES, to participate in a group benefits program, including but not limited to, health, dental, vision and life benefits. Health and Welfare Benefit Plans LLC administers the financial aspects of the group insurance program, receives all premium payments from the participating affiliates, and makes all vendor payments. The cost of coverage under this program was approximately $21.0 million, $20.2 million, and $21.5 million in 2020, 2019 and 2018, respectively, and is recorded in “ Operating expenses - Operation and maintenance” on the accompanying Consolidated Statements of Operations. We had no prepaids for coverage under this plan as of December 31, 2020 and 2019, respectively. AES files federal and state income tax returns which consolidate IPALCO and its subsidiaries. Under a tax sharing agreement with AES, IPALCO is responsible for the income taxes associated with its own taxable income and records the provision for income taxes using a separate return method. IPALCO had a receivable balance under this agreement of $24.4 million and $23.7 million as of December 31, 2020 and 2019, respectively, which is recorded in “ Taxes receivable” on the accompanying Consolidated Balance Sheets. See Note 8, " Income Taxes " for more information. Long-term Compensation Plan During 2020, 2019 and 2018, many of IPL’s non-union employees received benefits under the AES Long-term Compensation Plan, a deferred compensation program. This type of plan is a common employee retention tool used in our industry. Benefits under this plan are granted in the form of performance units payable in cash and AES restricted stock units. Restricted stock units vest ratably over a three-year period. The performance units payable in cash vest at the end of the three-year performance period and are subject to certain AES performance criteria. Total deferred compensation expense recorded during 2020, 2019 and 2018 was $0.3 million, $0.3 million and $0.5 million, respectively, and was included in “ Operating expenses - Operation and maintenance” on IPALCO’s Consolidated Statements of Operations. The value of these benefits is being recognized over the 36 month vesting period and a portion is recorded as miscellaneous deferred credits with the remainder recorded as “ Paid in capital” on IPALCO’s Consolidated Balance Sheets in accordance with ASC 718 “Compensation – Stock Compensation.” See also Note 9, “ Benefit Plans” to the Financial Statements for a description of benefits awarded to IPL employees by AES under the RSP. Service Company Total costs incurred by the Service Company on behalf of IPALCO were $55.7 million, $42.0 million and $44.5 million during 2020, 2019 and 2018, respectively. Total costs incurred by IPALCO on behalf of the Service Company during 2020, 2019 and 2018 wer e $10.6 million, $9.7 million and $10.1 million, respectively, which are included as a reduction to charges from the Service Company. These costs were included in “ Operating expenses - Operation and maintenance” on IPALCO’s Consolidated Statements of Operations. IPALCO had a payable balance with the Service Company of $4.5 million and $8.4 million as of December 31, 2020 and December 31, 2019, respectively, which is recorded in “ Accounts payable” on the accompanying Consolidated Balance Sheets. Other A member of the AES Board of Directors is also a member of the Supervisory Board of a third party vendor that IPL engaged in 2014 for certain construction projects. As the transactions with this vendor related to capital projects, there was no direct impact on the Consolidated Statements of Operations for the periods presented. Over the life of the project, IPL had total net charges from this vendor of $474.9 million. This vendor completed its service in 2018. Additionally, transactions with various other related parties were $6.5 million, $3.0 million and $5.7 million during 2020, 2019 and 2018, respectively. These expenses were primarily recorded in “ Operating expenses - Operation and maintenance” on the accompanying Consolidated Statements of Operations. |
Indianapolis Power And Light Company | |
Entity Information [Line Items] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS IPL participates in a property insurance program in which IPL buys insurance from AES Global Insurance Company, a wholly-owned subsidiary of AES. IPL is not self-insured on property insurance, but does take a $5 million per occurrence deductible. Except for IPL’s large substations, IPL does not carry insurance on transmission and distribution assets, which are considered to be outside the scope of property insurance. AES and other AES subsidiaries, including IPL, also participate in the AES global insurance program. IPL pays premiums for a policy that is written and administered by a third-party insurance company. The premiums paid to this third-party administrator by the participants are paid to AES Global Insurance Company and all claims are paid from a trust fund funded by and owned by AES Global Insurance Company, but controlled by the third-party administrator. IPL also has third-party insurance in which the premiums are paid directly to the third-party insurers. The cost to IPL of coverage under the property insurance program with AES Global Insurance Company was approximately $5.6 million, $4.3 million, and $3.1 million in 2020, 2019 and 2018, respectively, and is recorded in “ Operating expenses - Operation and maintenance” on the accompanying Consolidated Statements of Operations. As of December 31, 2020 and 2019, IPL had prepaid approximately of $2.3 million and $2.0 million, respectively, for coverage under these plans, which is recorded in " Prepayments and other current assets " on the accompanying Consolidated Balance Sheets. IPL participates in an agreement with Health and Welfare Benefit Plans LLC, an affiliate of AES, to participate in a group benefits program, including but not limited to, health, dental, vision and life benefits. Health and Welfare Benefit Plans LLC administers the financial aspects of the group insurance program, receives all premium payments from the participating affiliates, and makes all vendor payments. The cost of coverage under this program was approximately $21.0 million, $20.2 million, and $21.5 million in 2020, 2019 and 2018, respectively, and is recorded in “ Operating expenses - Operation and maintenance” on the accompanying Consolidated Statements of Operations. IPL had no prepaids for coverage under this plan as of December 31, 2020 and 2019, respectively. AES files federal and state income tax returns which consolidate IPALCO and its subsidiaries, including IPL. Under a tax sharing agreement with IPALCO, IPL is responsible for the income taxes associated with its own taxable income and records the provision for income taxes using a separate return method. IPL had a receivable balance under this agreement of $12.5 million and $23.1 million as of December 31, 2020 and 2019, respectively, which is recorded in “ Taxes receivable” on the accompanying Consolidated Balance Sheets. See Note 8, " Income Taxes " for more information. Long-term Compensation Plan During 2020, 2019 and 2018, many of IPL’s non-union employees received benefits under the AES Long-term Compensation Plan, a deferred compensation program. This type of plan is a common employee retention tool used in our industry. Benefits under this plan are granted in the form of performance units payable in cash and AES restricted stock units. Restricted stock units vest ratably over a three-year period. The performance units payable in cash vest at the end of the three-year performance period and are subject to certain AES performance criteria. Total deferred compensation expense recorded during 2020, 2019 and 2018 was $0.3 million, $0.3 million and $0.5 million, respectively, and was included in “ Operating expenses - Operation and maintenance” on IPL’s Consolidated Statements of Operations. The value of these benefits is being recognized over the 36 month vesting period and a portion is recorded as miscellaneous deferred credits with the remainder recorded as “ Paid in capital” on IPL’s Consolidated Balance Sheets in accordance with ASC 718 “Compensation – Stock Compensation.” See also Note 9, “Benefit Plans” to the audited consolidated financial statements of IPL for a description of benefits awarded to IPL employees by AES under the RSP. Service Company Total costs incurred by the Service Company on behalf of IPL were $55.5 million, $41.8 million and $44.1 million during 2020, 2019 and 2018, respectively. Total costs incurred by IPL on behalf of the Service Company during 2020, 2019 and 2018 were $10.6 million, $9.7 million and $10.1 million, respectively, which are included as a reduction to charges from the Service Company. These costs were included in “ Operating expenses - Operation and maintenance” on IPL’s Consolidated Statements of Operations. IPL had a payable balance with the Service Company of $4.5 million and $8.4 million as of December 31, 2020 and December 31, 2019, respectively, which is recorded in “ Accounts payable” on the accompanying Consolidated Balance Sheets. Other A member of the AES Board of Directors is also a member of the Supervisory Board of a third party vendor that IPL engaged in 2014 for certain construction projects. As the transactions with this vendor related to capital projects, there was no direct impact on the Consolidated Statements of Operations for the periods presented. Over the life of the project, IPL had total net charges from this vendor of $474.9 million. This vendor completed its service in 2018. IPL made loans to IPALCO, net of repayments, of $6.1 million during the year ended December 31, 2020. IPL has a loan receivable in the same amount recorded in “ Prepayments and other current assets” on the accompanying Consolidated Balance Sheets as of December 31, 2020. Additionally, transactions with various other related parties were $6.5 million, $3.0 million and $5.7 million during 2020, 2019 and 2018, respectively. These expenses were primarily recorded in “ Operating expenses - Operation and maintenance” on the accompanying Consolidated Statements of Operations. |
Business Segment Information
Business Segment Information | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Entity Information [Line Items] | ||
Business Segment Information | BUSINESS 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 "All Other" non-utility category primarily includes the 2024 IPALCO Notes and 2030 IPALCO Notes and related interest expense, balances associated with IPALCO's interest rate hedges, cash and other immaterial balances. The accounting policies of the identified segment are consistent with those policies and procedures described in the summary of significant accounting policies. The following table provides information about IPALCO’s business segments (in thousands): 2020 2019 2018 Utility All Other Total Utility All Other Total Utility All Other Total Revenues $ 1,352,985 $ — $ 1,352,985 $ 1,481,643 $ — $ 1,481,643 $ 1,450,505 $ — $ 1,450,505 Depreciation and amortization $ 246,896 $ — $ 246,896 $ 240,314 $ — $ 240,314 $ 232,332 $ — $ 232,332 Interest expense $ 87,281 $ 42,212 $ 129,493 $ 89,014 $ 32,757 $ 121,771 $ 64,472 $ 31,037 $ 95,509 Earnings/(loss) from operations before income tax $ 184,174 $ (45,615) $ 138,559 $ 200,707 $ (32,786) $ 167,921 $ 178,953 $ (31,479) $ 147,474 Capital expenditures (1) $ 235,736 $ — $ 235,736 $ 219,242 $ — $ 219,242 $ 235,764 $ — $ 235,764 (1) Capital expenditures includes $0.0 million, $5.6 million and $11.4 million of payments for financed capital expenditures in 2020, 2019 and 2018, respectively. As of December 31, 2020 As of December 31, 2019 As of December 31, 2018 Total assets $ 4,952,408 $ 17,511 $ 4,969,919 $ 4,918,408 $ 10,261 $ 4,928,669 $ 4,851,712 $ 10,341 $ 4,862,053 | |
Indianapolis Power And Light Company | ||
Entity Information [Line Items] | ||
Business Segment Information | BUSINESS SEGMENT INFORMATIONOperating 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. All of IPL’s current business consists of the generation, transmission, distribution and sale of electric energy, and therefore IPL had only one reportable segment. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer [Text Block] | REVENUE Revenue is primarily earned from retail and wholesale electricity sales and electricity transmission and distribution delivery services. Revenue is recognized upon transfer of control of promised goods or services to customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. Revenue is recorded net of any taxes assessed on and collected from customers, which are remitted to the governmental authorities. Retail revenues - IPL energy sales to utility customers are based on the reading of meters at the customer’s location that occurs on a systematic basis throughout the month. IPL sells electricity directly to end-users, such as homes and businesses, and bills customers directly. Retail revenues have a single performance obligation, as the promise to transfer energy and other distribution and/or transmission services are not separately identifiable from other promises in the contracts and, therefore, are not distinct. Additionally, as the performance obligation is satisfied over time as energy is delivered, and the same method is used to measure progress, the performance obligation meets the criteria to be considered a series. In exchange for the exclusive right to sell or distribute electricity in our service area, IPL is subject to rate regulation by federal and state regulators. This regulation sets the framework for the prices (“tariffs”) that IPL is allowed to charge customers for electric services. Since tariffs are approved by the regulator, the price that IPL has the right to bill corresponds directly with the value to the customer of IPL’s performance completed in each period. Therefore, revenue under these contracts is recognized using an output method measured by the MWhs delivered each month at the approved tariff. Customer payments are typically due on a monthly basis, though see Note 2, " Regulatory Matters - IURC COVID-19 Orders " for a discussion of the orders requiring expanded payment arrangements for customers. Wholesale revenues - Power produced at the generation stations in excess of our retail load is sold into the MISO market. Such sales are made at either the day-ahead or real-time hourly market price, and these sales are classified as wholesale revenues. We sell to and purchase power from MISO, and such sales and purchases are settled and accounted for on a net hourly basis. In the MISO market, wholesale revenue is recorded at the spot price based on the quantities of MWh delivered in each hour during each month. As a member of MISO, we are obligated to declare the availability of our energy production into the wholesale energy market, but we are not obligated to commit our previously declared availability. As such, contract terms end as the energy for each day is delivered to the market in the case of the day-ahead market and for each hour in the case of the real-time market. Miscellaneous revenues - Miscellaneous revenues are mainly comprised of MISO transmission revenues. MISO transmission revenues are earned when IPL’s power lines are used in transmission of energy by power producers other than IPL. As IPL owns and operates transmission lines in central and southern Indiana, demand charges collected from network customers by MISO are allocated to the appropriate transmission owners (including IPL) and recognized as transmission revenues. Capacity revenues are also included in miscellaneous revenues, but these were not material for the period presented. Transmission revenues have a single performance obligation, as transmission services represent a distinct service. Additionally, as the performance obligation is satisfied over time and the same method is used to measure progress, the performance obligation meets the criteria to be considered a series. The price that the transmission operator has the right to bill corresponds directly with the value to the customer of IPL’s performance completed in each period as the price paid is the transmission operator's allocation of the tariff rate (as approved by the regulator) charged to network participants. IPL’s revenue from contracts with customers was $1,326.6 million, $1,455.3 million and $1,440.7 million for the years ended December 31, 2020 , 2019 and 2018, respectively. The following table presents our revenue from contracts with customers and other revenue (in thousands): For the Years Ended December 31, 2020 2019 2018 Retail Revenues Retail revenue from contracts with customers: Residential $ 566,668 $ 589,719 $ 588,031 Small commercial and industrial 194,904 215,878 217,896 Large commercial and industrial 484,230 548,551 565,720 Public lighting 9,115 7,249 9,797 Other (1) 14,402 14,136 10,427 Total retail revenue from contracts with customers 1,269,319 1,375,533 1,391,871 Alternative revenue programs 24,781 23,841 4,594 Wholesale Revenues Wholesale revenues from contracts with customers 46,482 68,474 38,789 Miscellaneous Revenues Transmission and other revenue from contracts with customers 10,794 11,335 10,057 Other miscellaneous revenues (2) 1,609 2,460 5,194 Total Revenues $ 1,352,985 $ 1,481,643 $ 1,450,505 (1) Other retail revenue from contracts with customers includes miscellaneous charges to customers (2) Other miscellaneous revenue includes lease and other miscellaneous revenues not accounted for under ASC 606 The balances of receivables from contracts with customers are $163.8 million and $155.0 million as of December 31, 2020 and December 31, 2019, respectively. Payment terms for all receivables from contracts with customers typically do not extend beyond 30 days, though see Note 2, "Regulatory Matters - IURC COVID-19 Order" for a discussion of orders requiring expanded payment arrangements for customers. The Company has elected to apply the optional disclosure exemptions under ASC 606. Therefore, the Company has not included disclosure pertaining to revenue expected to be recognized in any future year related to remaining performance obligations, as we exclude contracts with an original length of one year or less, contracts for which we recognize revenue based on the amount we have the right to invoice for services performed, and contracts with variable consideration allocated entirely to a wholly unsatisfied performance obligation when the consideration relates specifically to our efforts to satisfy the performance obligation and depicts the amount to which we expect to be entitled. Contract Balances — The timing of revenue recognition, billings, and cash collections results in accounts receivable and contract liabilities. The contract liabilities from contracts with customers were $0.5 million as of December 31, 2020. During the year ended December 31, 2020, we recognized revenue of $1.3 million related to this contract liability balance, respectively. |
Indianapolis Power And Light Company | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer [Text Block] | Revenue is primarily earned from retail and wholesale electricity sales and electricity transmission and distribution delivery services. Revenue is recognized upon transfer of control of promised goods or services to customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. Revenue is recorded net of any taxes assessed on and collected from customers, which are remitted to the governmental authorities. Retail revenues - IPL energy sales to utility customers are based on the reading of meters at the customer’s location that occurs on a systematic basis throughout the month. IPL sells electricity directly to end-users, such as homes and businesses, and bills customers directly. Retail revenues have a single performance obligation, as the promise to transfer energy and other distribution and/or transmission services are not separately identifiable from other promises in the contracts and, therefore, are not distinct. Additionally, as the performance obligation is satisfied over time as energy is delivered, and the same method is used to measure progress, the performance obligation meets the criteria to be considered a series. In exchange for the exclusive right to sell or distribute electricity in our service area, IPL is subject to rate regulation by federal and state regulators. This regulation sets the framework for the prices (“tariffs”) that IPL is allowed to charge customers for electric services. Since tariffs are approved by the regulator, the price that IPL has the right to bill corresponds directly with the value to the customer of IPL’s performance completed in each period. Therefore, revenue under these contracts is recognized using an output method measured by the MWhs delivered each month at the approved tariff. Customer payments are typically due on a monthly basis, though see Note 2, " Regulatory Matters - IURC COVID-19 Orders " for a discussion of the orders requiring expanded payment arrangements for customers. Wholesale revenues - Power produced at the generation stations in excess of our retail load is sold into the MISO market. Such sales are made at either the day-ahead or real-time hourly market price, and these sales are classified as wholesale revenues. We sell to and purchase power from MISO, and such sales and purchases are settled and accounted for on a net hourly basis. In the MISO market, wholesale revenue is recorded at the spot price based on the quantities of MWh delivered in each hour during each month. As a member of MISO, we are obligated to declare the availability of our energy production into the wholesale energy market, but we are not obligated to commit our previously declared availability. As such, contract terms end as the energy for each day is delivered to the market in the case of the day-ahead market and for each hour in the case of the real-time market. Miscellaneous revenues - Miscellaneous revenues are mainly comprised of MISO transmission revenues. MISO transmission revenues are earned when IPL’s power lines are used in transmission of energy by power producers other than IPL. As IPL owns and operates transmission lines in central and southern Indiana, demand charges collected from network customers by MISO are allocated to the appropriate transmission owners (including IPL) and recognized as transmission revenues. Capacity revenues are also included in miscellaneous revenues, but these were not material for the period presented. Transmission revenues have a single performance obligation, as transmission services represent a distinct service. Additionally, as the performance obligation is satisfied over time and the same method is used to measure progress, the performance obligation meets the criteria to be considered a series. The price that the transmission operator has the right to bill corresponds directly with the value to the customer of IPL’s performance completed in each period as the price paid is the transmission operator's allocation of the tariff rate (as approved by the regulator) charged to network participants. IPL’s revenue from contracts with customers was $1,326.6 million , $1,455.3 million and $1,440.7 million for the years ended December 31, 2020 , 2019 and 2018, respectively. The following table presents IPL's revenue from contracts with customers and other revenue (in thousands): For the Years Ended December 31, 2020 2019 2018 Retail Revenues Retail revenue from contracts with customers: Residential $ 566,668 $ 589,719 $ 588,031 Small commercial and industrial 194,904 215,878 217,896 Large commercial and industrial 484,230 548,551 565,720 Public lighting 9,115 7,249 9,797 Other (1) 14,402 14,136 10,427 Total retail revenue from contracts with customers 1,269,319 1,375,533 1,391,871 Alternative revenue programs 24,781 23,841 4,594 Wholesale Revenues Wholesale revenues from contracts with customers 46,482 68,474 38,789 Miscellaneous Revenues Transmission and other revenue from contracts with customers 10,794 11,335 10,057 Other miscellaneous revenues (2) 1,609 2,460 5,194 Total Revenues $ 1,352,985 $ 1,481,643 $ 1,450,505 (1) Other retail revenue from contracts with customers includes miscellaneous charges to customers (2) Other miscellaneous revenue includes lease and other miscellaneous revenues not accounted for under ASC 606 The balances of receivables from contracts with customers are $163.8 million and $155.0 million as of December 31, 2020 and December 31, 2019, respectively. Payment terms for all receivables from contracts with customers typically do not extend beyond 30 days, though see Note 2, "Regulatory Matters - IURC COVID-19 Order" for a discussion of orders requiring expanded payment arrangements for customers. IPL has elected to apply the optional disclosure exemptions under ASC 606. Therefore, IPL has not included disclosure pertaining to revenue expected to be recognized in any future year related to remaining performance obligations, as we exclude contracts with an original length of one year or less, contracts for which we recognize revenue based on the amount we have the right to invoice for services performed, and contracts with variable consideration allocated entirely to a wholly unsatisfied performance obligation when the consideration relates specifically to our efforts to satisfy the performance obligation and depicts the amount to which IPL expects to be entitled. Contract Balances — The timing of revenue recognition, billings, and cash collections results in accounts receivable and contract liabilities. The contract liabilities from contracts with customers were $0.5 million as of December 31, 2020. During the year ended December 31, 2020, we recognized revenue of $1.3 million related to this contract liability balance, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Entity Information [Line Items] | |
Lessor, Operating Leases | LEASES LESSOR The Company is the lessor under operating leases for land, office space and operating equipment. Minimum lease payments from such contracts are recognized as operating lease revenue on a straight-line basis over the lease term whereas contingent rentals are recognized when earned. Lease revenue included in the Consolidated Statements of Operations was $0.9 million and $1.0 million for the years ended December 31, 2020 and 2019, respectively. Underlying gross assets and accumulated depreciation of operating leases included in Total net property, plant and equipment on the Consolidated Balance Sheet were $4.3 million and $0.8 million, respectively, as of December 31, 2020 and $4.3 million and $0.7 million, respectively, as of December 31, 2019. The option to extend or terminate a lease is based on customary early termination provisions in the contract. The Company has not recognized any early terminations as of December 31, 2020. The following table shows the future minimum lease receipts through 2025 and thereafter (in thousands): Operating Leases 2021 $ 886 2022 906 2023 906 2024 786 2025 544 Thereafter 2,074 Total $ 6,102 |
Subsidiaries [Member] | |
Entity Information [Line Items] | |
Lessor, Operating Leases | LEASES LESSOR The Company is the lessor under operating leases for land, office space and operating equipment. Minimum lease payments from such contracts are recognized as operating lease revenue on a straight-line basis over the lease term whereas contingent rentals are recognized when earned. Lease revenue included in the Consolidated Statements of Operations was $0.9 million and $1.0 million for the years ended December 31, 2020 and 2019, respectively. Underlying gross assets and accumulated depreciation of operating leases included in Total net property, plant and equipment on the Consolidated Balance Sheet were $4.3 million and $0.8 million, respectively, as of December 31, 2020 and $4.3 million and $0.7 million, respectively, as of December 31, 2019. The option to extend or terminate a lease is based on customary early termination provisions in the contract. The Company has not recognized any early terminations as of December 31, 2020. The following table shows the future minimum lease receipts through 2025 and thereafter (in thousands): Operating Leases 2021 $ 886 2022 906 2023 906 2024 786 2025 544 Thereafter 2,074 Total $ 6,102 |
Risks and Uncertainties
Risks and Uncertainties | 12 Months Ended |
Dec. 31, 2020 | |
Entity Information [Line Items] | |
Risks and Uncertainties | RISKS AND UNCERTAINTIES COVID-19 Pandemic The COVID-19 pandemic has severely impacted global economic activity, including electricity and energy consumption, and caused significant volatility and negative pressure in financial markets. The global impact of the outbreak has been rapidly evolving and many countries, including the U.S., have reacted by instituting quarantines, mandating business and school closures and social distancing measures as well as restricting travel. The State of Indiana implemented, among other things, stay-at-home and other social distancing measures to slow the spread of the virus, which has impacted energy demand within our service territory, though the stay-at-home restrictions have now been lifted in our service territory. Also, the Executive Order previously issued by the Governor of Indiana prohibiting electric utilities, including us, from discontinuing electric utility service to customers through August 14, 2020 has lapsed. We are taking a variety of measures in response to the spread of COVID-19 to ensure our ability to generate, transmit, distribute and sell electric energy, ensure the health and safety of our employees, contractors, customers and communities and provide essential services to the communities in which we operate. In addition to the impacts to demand within our service territory, we also have incurred and expect to continue to incur expenses relating to COVID-19, including those that relate to events outside of our control. As the economic impact of the COVID-19 pandemic started to materialize in Indiana in the second half of March 2020 and continued for the duration of 2020, the COVID-19 pandemic primarily impacted our retail sales demand as shown by the changes in weather-normalized volumes of kWh sold compared to the weather-normalized volumes for the same periods in 2019: Customer class For the three months ended For the year ended March 31, 2020 June 30, 2020 September 30, 2020 December 31, 2020 December 31, 2020 Residential 1.6 % 6.6 % 3.9 % 2.4 % 3.4 % Small commercial and industrial (1.8) % (10.3) % (4.2) % (5.3) % (5.2) % Large commercial and industrial (2.8) % (11.0) % (7.9) % (5.7) % (6.9) % As noted above, we also have incurred and expect to continue to incur expenses relating to COVID-19, however see Note 2, "Regulatory Matters - IURC COVID-19 Orders" for a discussion of regulatory measures which partially mitigate the impact of these expenses. We continued to experience COVID-19 impacts into 2021. The magnitude and duration of the COVID-19 pandemic is unknown at this time and may have material and adverse effects on our results of operations, financial condition and cash flows in future periods. |
Subsidiaries [Member] | |
Entity Information [Line Items] | |
Risks and Uncertainties | RISKS AND UNCERTAINTIES COVID-19 Pandemic The COVID-19 pandemic has severely impacted global economic activity, including electricity and energy consumption, and caused significant volatility and negative pressure in financial markets. The global impact of the outbreak has been rapidly evolving and many countries, including the U.S., have reacted by instituting quarantines, mandating business and school closures and social distancing measures as well as restricting travel. The State of Indiana implemented, among other things, stay-at-home and other social distancing measures to slow the spread of the virus, which has impacted energy demand within our service territory, though the stay-at-home restrictions have now been lifted in our service territory. Also, the Executive Order previously issued by the Governor of Indiana prohibiting electric utilities, including us, from discontinuing electric utility service to customers through August 14, 2020 has lapsed. We are taking a variety of measures in response to the spread of COVID-19 to ensure our ability to generate, transmit, distribute and sell electric energy, ensure the health and safety of our employees, contractors, customers and communities and provide essential services to the communities in which we operate. In addition to the impacts to demand within our service territory, we also have incurred and expect to continue to incur expenses relating to COVID-19, including those that relate to events outside of our control. As the economic impact of the COVID-19 pandemic started to materialize in Indiana in the second half of March 2020 and continued for the duration of 2020, the COVID-19 pandemic primarily impacted our retail sales demand as shown by the changes in weather-normalized volumes of kWh sold compared to the weather-normalized volumes for the same periods in 2019: Customer class For the three months ended For the year ended March 31, 2020 June 30, 2020 September 30, 2020 December 31, 2020 December 31, 2020 Residential 1.6 % 6.6 % 3.9 % 2.4 % 3.4 % Small commercial and industrial (1.8) % (10.3) % (4.2) % (5.3) % (5.2) % Large commercial and industrial (2.8) % (11.0) % (7.9) % (5.7) % (6.9) % As noted above, we also have incurred and expect to continue to incur expenses relating to COVID-19, however see Note 2, "Regulatory Matters - IURC COVID-19 Orders" for a discussion of regulatory measures which partially mitigate the impact of these expenses. We continued to experience COVID-19 impacts into 2021. The magnitude and duration of the COVID-19 pandemic is unknown at this time and may have material and adverse effects on our results of operations, financial condition and cash flows in future periods. |
Schedule I - Condensed Financia
Schedule I - Condensed Financial Information Of Registrant | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule I - Condensed Financial Information Of Registrant | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESAccounting for Subsidiaries and Affiliates – IPALCO has accounted for the earnings of its subsidiaries on the equity method in the unconsolidated condensed financial information.FAIR VALUE The fair value of financial assets and liabilities approximate their reported carrying amounts. The estimated fair values of the Company’s assets and liabilities have been determined using available market information. As these amounts are estimates and based on hypothetical transactions to sell assets or transfer liabilities, the use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. Fair Value Hierarchy and Valuation Techniques 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. 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. Financial Assets VEBA Assets IPALCO has VEBA investments that are to be used to fund certain employee postretirement health care benefit plans. These assets are primarily comprised of open-ended mutual funds, which are valued using the net assets value per unit. These investments are recorded at fair value within " Other non-current assets " on the accompanying Consolidated Balance Sheets and classified as equity securities. All changes to fair value on the VEBA investments are included in income in the period that the changes occur. These changes to fair value were not material for the years ended December 31, 2020, 2019, or 2018. Any unrealized gains or losses are recorded in " Other income / (expense), net " on the accompanying Unconsolidated Statements of Operations. Financial Liabilities Interest Rate Hedges In March 2019, we entered into forward interest rate hedges, which were amended in April 2020. The interest rate hedges have a combined notional amount of $400.0 million. All changes in the market value of the interest rate hedges are recorded in AOCL. See also Note 3, " Derivative Instruments and Hedging Activities - Cash Flow Hedges " for further information. Summary The fair value of assets and liabilities at December 31, 2020 measured on a recurring basis and the respective category within the fair value hierarchy for IPALCO was determined as follows: Assets and Liabilities at Fair Value Level 1 Level 2 Level 3 Fair value at December 31, 2020 Based on quoted market prices in active markets Other observable inputs Unobservable inputs (In Thousands) Financial assets: VEBA investments: Money market funds $ 16 $ 16 $ — $ — Mutual funds 3,209 — 3,209 — Total VEBA investments 3,225 16 3,209 — Total financial assets measured at fair value $ 3,225 $ 16 $ 3,209 $ — Financial liabilities: Interest rate hedges $ 63,215 $ — $ 63,215 $ — Total financial liabilities measured at fair value $ 63,215 $ — $ 63,215 $ — The fair value of assets and liabilities at December 31, 2019 measured on a recurring basis and the respective category within the fair value hierarchy for IPALCO was determined as follows: Assets and Liabilities at Fair Value Level 1 Level 2 Level 3 Fair value at December 31, 2019 Based on quoted market prices in active markets Other observable inputs Unobservable inputs (In Thousands) Financial assets: VEBA investments: Money market funds $ 25 $ 25 $ — $ — Mutual funds 2,854 — 2,854 — Total VEBA investments 2,879 25 2,854 — Total financial assets measured at fair value $ 2,879 $ 25 $ 2,854 $ — Financial liabilities: Interest rate hedges $ 26,560 $ — $ 26,560 $ — Total financial liabilities measured at fair value $ 26,560 $ — $ 26,560 $ — 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: December 31, 2020 December 31, 2019 Face Value Fair Value Face Value Fair Value (In Thousands) Fixed-rate $ 880,000 $ 992,615 $ 810,000 $ 826,382 Variable-rate — — 65,000 65,000 Total indebtedness $ 880,000 $ 992,615 $ 875,000 $ 891,382 The difference between the face value and the carrying value of this indebtedness represents the following: • unamortized deferred financing costs of $8.6 million and $4.0 million at December 31, 2020 and 2019, respectively; and • unamortized discounts of $0.6 million and $0.3 million at December 31, 2020 and 2019, respectively. We use derivatives principally to manage the interest rate risk associated with refinancing our long-term debt. The derivatives that we use to economically hedge these risks are governed by our risk management policies for forward and futures contracts. Our net positions are continually assessed within our structured hedging programs to determine whether new or offsetting transactions are required. We monitor and value derivative positions monthly as part of our risk management processes. We use published sources for pricing, when possible, to mark positions to market. All of our derivative instruments are used for risk management purposes and are designated as cash flow hedges if they qualify under ASC 815 for accounting purposes. At December 31, 2020 , IPALCO's outstanding derivative instruments were as follows: Commodity Accounting Treatment (a) Unit Purchases Sales Net Purchases/(Sales) Interest rate hedges Designated USD $ 400,000 $ — $ 400,000 (a) Refers to whether the derivative instruments have been designated as a cash flow hedge. Cash Flow Hedges As part of our risk management processes, we identify the relationships between hedging instruments and hedged items, as well as the risk management objective and strategy for undertaking various hedge transactions. The fair values of cash flow hedges determined by current public market prices will continue to fluctuate with changes in market prices up to contract expiration. With the adoption of ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted improvements to Accounting for Hedging Activities effective January 1, 2019, we are no longer required to calculate effectiveness and thus the entire change in the fair value of a hedging instrument is now recorded in other comprehensive income and amounts deferred are reclassified to earnings in the same income statement line as the hedged item in the period in which it settles. In March 2019, we entered into three forward interest rate swaps to hedge the interest risk associated with refinancing future debt. The three interest rate swaps have a combined notional amount of $400.0 million. In April 2020, we de-designated the swaps as cash flow hedges and froze the AOCL of $72.3 million at the date of de- designation. The interest rate swaps were then amended and re-designated as cash flow hedges to hedge the interest rate risk associated with refinancing the 2024 IPALCO Notes. The amended interest rate swaps have a combined notional amount of $400.0 million and will be settled when the 2024 IPALCO Notes are refinanced. The $72.3 million of AOCL associated with the interest rate swaps through the date of the amendment will be amortized out of AOCL into interest expense over the remaining life of the 2030 IPALCO Notes, while any changes in fair value associated with the amended interest rate swaps will be recognized in AOCL going forward. The following tables provide information on gains or losses recognized in AOCL for the cash flow hedges for the period indicated: Interest Rate Hedges for the Year Ended December 31, $ in thousands (net of tax) 2020 2019 2018 Beginning accumulated derivative gain / (loss) in AOCL $ (19,750) $ — $ — Net losses associated with current period hedging transactions (27,779) (19,750) — Net losses reclassified to interest expense, net of tax 4,109 — — Ending accumulated derivative loss in AOCL $ (43,420) $ (19,750) $ — Loss expected to be reclassified to earnings in the next twelve months $ (5,375) Maximum length of time that we are hedging our exposure to variability in future cash flows related to forecasted transactions (in months) 45 When applicable, IPALCO has elected not to offset derivative assets and liabilities and not to offset net derivative positions against the right to reclaim cash collateral pledged (an asset) or the obligation to return cash collateral received (a liability) under derivative agreements. As of December 31, 2020, IPALCO had $6.1 million of collateral in a broker margin account which offsets our loss positions on the interest rate hedges. The following table summarizes the fair value, balance sheet classification and hedging designation of IPALCO's derivative instruments: December 31, Commodity Hedging Designation Balance sheet classification 2020 2019 Interest rate hedges Cash Flow Hedge Accrued and other current liabilities $ — $ 26,560 Interest rate hedges Cash Flow Hedge Derivative liabilities, non-current $ 63,215 $ — The following table presents IPALCO’s long-term indebtedness: December 31, Series Due 2020 2019 (In Thousands) Long-Term Debt Term Loan July 2020 $ — $ 65,000 3.45% Senior Secured Notes July 2020 — — 405,000 3.70% Senior Secured Notes September 2024 — 405,000 405,000 4.25% Senior Secured Notes May 2030 475,000 — Unamortized discount – net (625) (313) Deferred financing costs – net (8,600) (3,959) Total long-term debt 870,775 870,728 Less: current portion of long-term debt — 469,313 Net long-term debt $ 870,775 $ 401,415 IPALCO’s Senior Secured Notes and Term Loan In April 2020, IPALCO completed the sale of the $475 million aggregate principal amount of 4.25% 2030 IPALCO Notes pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended. We used the net proceeds from this offering to retire the $65 million Term Loan on April 14, 2020. The remaining net proceeds, together with cash on hand, were used to redeem the 2020 IPALCO Notes on May 14, 2020, and to pay certain related fees, expenses and make-whole premiums. A loss on early extinguishment of debt of $2.4 million for the 2020 IPALCO Notes is included as a separate line item within " Other Income/(Expense), Net " in the accompanying Unconsolidated Statements of Operations. The 2030 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 also agreed to register the 2030 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 dated April 14, 2020. |
Schedule II - Valuation And Qua
Schedule II - Valuation And Qualifying Accounts And Reserves | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation And Qualifying Accounts And Reserves | IPALCO ENTERPRISES, INC. and SUBSIDIARIES Valuation and Qualifying Accounts and Reserves For the Years Ended December 31, 2020, 2019 and 2018 (In Thousands) Column A – Description Column B Column C – Additions Column D – Deductions Column E Balance at Beginning Charged to Charged to Other Net Balance at Year ended December 31, 2020 Accumulated Provisions Deducted from Assets – Doubtful Accounts $ 2,053 $ 5,861 $ (1,132) $ 3,627 $ 3,155 Deducted from Inventories Valuation Allowance for Materials and Supplies $ 6,204 $ — $ — $ 71 $ 6,133 Year ended December 31, 2019 Accumulated Provisions Deducted from Assets – Doubtful Accounts $ 2,821 $ 4,760 $ — $ 5,528 $ 2,053 Deducted from Inventories Valuation Allowance for Materials and Supplies $ — $ 6,204 $ — $ — $ 6,204 Year ended December 31, 2018 Accumulated Provisions Deducted from Assets – Doubtful Accounts $ 2,830 $ 6,008 $ — $ 6,017 $ 2,821 INDIANAPOLIS POWER & LIGHT COMPANY and SUBSIDIARY Valuation and Qualifying Accounts and Reserves For the Years Ended December 31, 2020, 2019 and 2018 (In Thousands) Column A – Description Column B Column C – Additions Column D – Deductions Column E Balance at Beginning Charged to Charged to Other Net Balance at Year ended December 31, 2020 Accumulated Provisions Deducted from Assets – Doubtful Accounts $ 2,053 $ 5,861 $ (1,132) $ 3,627 $ 3,155 Deducted from Inventories Valuation Allowance for Materials and Supplies $ 6,204 $ 71 $ 6,133 Year ended December 31, 2019 Accumulated Provisions Deducted from Assets – Doubtful Accounts $ 2,821 $ 4,760 $ — $ 5,528 $ 2,053 Deducted from Inventories Valuation Allowance for Materials and Supplies $ — $ 6,204 $ — $ — $ 6,204 Year ended December 31, 2018 Accumulated Provisions Deducted from Assets – Doubtful Accounts $ 2,830 $ 6,008 $ — $ 6,017 $ 2,821 |
Overview and Summary of Signi_2
Overview and Summary of Significant Accounting Policies (Policy) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Entity Information [Line Items] | ||
Property, Plant and Equipment, Policy [Policy Text Block] | Property, plant and equipment is stated at original cost as defined for regulatory purposes. The cost of additions to property, plant and equipment and replacements of retirement units of property are charged to plant accounts. Units of property replaced or abandoned in the ordinary course of business are retired from the plant accounts at cost; such amounts, less salvage, are charged to accumulated depreciation. Depreciation is computed by the straight-line method based on functional rates approved by the IURC and averaged 3.7%, 3.7%, and 4.2% during 2020, 2019 and 2018, respectively. Depreciation expense was $232.8 million, $228.2 million, and $235.2 million for the years ended December 31, 2020, 2019 and 2018, respectively. "Depreciation and amortization" expense on the accompanying Consolidated Statements of Operations is presented net of regulatory deferrals of depreciation expense and also includes amortization of intangible assets and amortization of previously deferred regulatory costs. | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | The following table summarizes our accounts receivable balances at December 31: As of December 31, 2020 2019 (In Thousands) Accounts receivable, net Customer receivables $ 91,335 $ 90,747 Unbilled revenue 72,334 65,822 Amounts due from related parties 490 2,717 Other 4,189 2,725 Provision for uncollectible accounts (3,155) (921) Total accounts receivable, net $ 165,193 $ 161,090 | |
Inventory, Policy [Policy Text Block] | Inventories We maintain coal, fuel oil, materials and supplies inventories for use in the production of electricity. These inventories are accounted for at the lower of cost or net realizable value, using the average cost. The following table summarizes our inventories balances at December 31: As of December 31, 2020 2019 (In Thousands) Inventories Fuel $ 36,953 $ 26,907 Materials and supplies, net 58,553 56,662 Total inventories $ 95,506 $ 83,569 | |
Intangible Assets, Finite-Lived, Policy [Policy Text Block] | Intangible AssetsIntangible assets primarily include capitalized software of $144.5 million and $139.6 million and its corresponding accumulated amortization of $85.3 million and $74.7 million, as of December 31, 2020 and 2019, respectively. Amortization expense was $10.6 million, $7.5 million and $5.5 million for the years ended December 31, 2020, 2019 and 2018, respectively. The estimated amortization expense of this capitalized software is approximately $59.0 million over the next 5 years ($11.8 million in 2021, $11.8 million in 2022, $11.8 million in 2023, $11.8 million in 2024 and $11.8 million in 2025). | |
Principles of Consolidation | Principles of Consolidation IPALCO’s consolidated financial statements are prepared in accordance with GAAP and in conjunction with the rules and regulations of the SEC. The consolidated financial statements include the accounts of IPALCO, its regulated utility subsidiary, IPL, and its unregulated subsidiary, Mid-America. All intercompany items have been eliminated in consolidation. Certain costs for shared resources amongst IPL and IPALCO, such as labor and benefits, are allocated to each entity based on allocation methodologies that management believes to be reasonable. We have evaluated subsequent events through the date this report is issued. | |
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 management is required to make. Actual results may differ from those estimates. | |
Regulation | Regulatory Accounting The retail utility operations of IPL are subject to the jurisdiction of the IURC. IPL’s wholesale power transactions are subject to the jurisdiction of the FERC. These agencies regulate IPL’s utility business operations, tariffs, accounting, depreciation allowances, services, issuances of securities and the sale and acquisition of utility properties. The financial statements of IPL are based on GAAP, including the provisions of FASB ASC 980 “Regulated Operations,” which gives recognition to the ratemaking and accounting practices of these agencies. See also Note 2, “Regulatory Matters - Regulatory Assets and Liabilities” for a discussion of specific regulatory assets and liabilities. | |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents are stated at cost, which approximates fair value. All highly liquid short-term investments with original maturities of three months or less are considered cash equivalents. Restricted cash includes cash which is restricted as to withdrawal or usage. The nature of the restrictions includes restrictions imposed by agreements related to deposits held as collateral. The following table provides a summary of cash, cash equivalents and restricted cash amounts as shown on the Consolidated Statements of Cash Flows: As of December 31, 2020 2019 (In Thousands) Cash, cash equivalents and restricted cash Cash and cash equivalents $ 20,502 $ 48,152 Restricted cash 6,120 400 Total cash, cash equivalents and restricted cash $ 26,622 $ 48,552 | |
Revenues and Accounts Receivable | Revenues and Accounts Receivable Revenues related to the sale of energy are generally recognized when service is rendered or energy is delivered to customers. However, the determination of the energy sales to individual customers is based on the reading of their meters, which occurs on a systematic basis throughout the month. At the end of each month, amounts of energy delivered to certain customers since the date of the last meter reading are estimated and the corresponding unbilled revenue is accrued. In making its estimates of unbilled revenue, IPL uses complex models that consider various factors including daily generation volumes; known amounts of energy usage by nearly all residential, commercial and industrial customers; estimated line losses; and estimated customer rates based on prior period billings. Given the use of these models, and that customers are billed on a monthly cycle, we believe it is unlikely that materially different results will occur in future periods when revenue is billed. An allowance for potential credit losses is maintained and amounts are written off when normal collection efforts have been exhausted. Our provision for expected credit losses included in “Operating expenses - Operation and maintenance” on the accompanying Consolidated Statements of Operations was $4.8 million , $4.3 million and $5.9 million for the years ended December 31, 2020, 2019 and 2018, respectively. IPL’s basic rates include a provision for fuel costs as established in IPL’s most recent rate proceeding, which last adjusted IPL’s rates in December 2018. IPL is permitted to recover actual costs of purchased power and fuel consumed, subject to certain restrictions. This is accomplished through quarterly FAC proceedings, in which IPL estimates the amount of fuel and purchased power costs in future periods. Through these proceedings, IPL is also permitted to recover, in future rates, underestimated fuel and purchased power costs from prior periods, subject to certain restrictions, and therefore the over or underestimated costs are deferred or accrued and amortized into fuel expense in the same period that IPL’s rates are adjusted. See also Note 2, “ Regulatory Matters ” for a discussion of other costs that IPL is permitted to recover through periodic rate adjustment proceedings and the status of current rate adjustment proceedings. In addition, we are one of many transmission system owner members of MISO, a regional transmission organization which maintains functional control over the combined transmission systems of its members and manages one of the largest energy markets in the U.S. See Note 13, " Revenue " for additional information of MISO sales and other revenue streams. The following table summarizes our accounts receivable balances at December 31: As of December 31, 2020 2019 (In Thousands) Accounts receivable, net Customer receivables $ 91,335 $ 90,747 Unbilled revenue 72,334 65,822 Amounts due from related parties 490 2,717 Other 4,189 2,725 Provision for uncollectible accounts (3,155) (921) Total accounts receivable, net $ 165,193 $ 161,090 | |
Contingencies | Contingencies IPALCO accrues for loss contingencies when the amount of the loss is probable and estimable. We are subject to various environmental regulations and are involved in certain legal proceedings. If IPL’s actual environmental and/or legal obligations are different from our estimates, the recognition of the actual amounts may have a material impact on our results of operations, financial condition and cash flows; although that has not been the case during the periods covered by this report. As of December 31, 2020 and 2019, total loss contingencies accrued were $15.4 million and $4.5 million, respectively, which were included in “Accrued and Other Current Liabilities” and " Other Non-Current Liabilities | |
Concentration of Risk | Concentrations of Risk Substantially all of IPL’s customers are located within the Indianapolis area. Approximately 69% of IPL’s employees are covered by collective bargaining agreements in two bargaining units: a physical unit and a clerical-technical unit. IPL’s contract with the physical unit expires on December 6, 2021, and the contract with the clerical-technical unit expires February 13, 2023. Additionally, IPL has long-term coal contracts with two suppliers, and substantially all of the coal is currently mined in the state of Indiana. | |
Allowance For Funds Used During Construction | Allowance For Funds Used During ConstructionIn accordance with the Uniform System of Accounts prescribed by FERC, IPL capitalizes an allowance for the net cost of funds (interest on borrowed funds and a reasonable rate of return on equity funds) used for construction purposes during the period of construction with a corresponding credit to income. IPL capitalized amounts using pretax composite rates of 6.9%, 6.9% and 6.4% during 2020, 2019 and 2018, respectively. | |
Derivatives | Financial Derivatives All derivatives are recognized as either assets or liabilities in the balance sheets and are measured at fair value. Changes in the fair value are recorded in earnings unless the derivative is designated as a cash flow hedge of a forecasted transaction or it qualifies for the normal purchases and sales exception. IPL has contracts involving the physical delivery of energy and fuel. Because these contracts qualify for the normal purchases and normal sales scope exception in ASC 815, IPL has elected to account for them as accrual contracts, which are not adjusted for changes in fair value. Additionally, we use interest rate hedges to manage the interest rate risk of our variable rate debt. We use cash flow hedge accounting when the hedge or a portion of the hedge is deemed to be highly effective, which results in changes in the fair value being recorded within accumulated other comprehensive income, a component of shareholders' equity. We have elected not to offset net derivative positions in the Financial Statements. Accordingly, we do not offset such derivative positions against the fair value of amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral under master netting agreements. See Note 5, “Derivative Instruments and Hedging Activities” for additional information. | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The changes in the components of Accumulated Other Comprehensive Income/(Loss) during the years ended December 31, 2020, 2019, and 2018 are as follows (in thousands): For the Years Ended December 31, 2020 2019 2018 Gains and losses on cash flow hedges (Note 5): Balance at January 1 $ (19,750) $ — $ — Other comprehensive loss before reclassifications (27,779) (19,750) — Amounts reclassified from AOCI to earnings 4,109 — — Balance at December 31 $ (43,420) $ (19,750) $ — | |
Impairment of Long-Lived Assets | Impairment of Long-lived Assets GAAP requires that we test long-lived assets for impairment when indicators of impairment exist. If an asset is deemed to be impaired, we are required to write down the asset to its fair value with a charge to current earnings. The net book value of our property, plant, and equipment was $4.1 billion as of December 31, 2020 and 2019. In December 2020, IPL reclassified net property, plant and equipment of $74.5 million associated with the probable Petersburg Unit 1 retirement to long-term regulatory assets (for further discussion, see Note 2, “Regulatory Matters - IRP Filing” and Note 3 , "Property, Plant and Equipment" ) . We do not believe any of these assets are currently impaired. In making this assessment, we consider such factors as: the overall condition and generating and distribution capacity of the assets; the expected ability to recover additional expenditures in the assets; the anticipated demand and relative pricing of retail electricity in our service territory and wholesale electricity in the region; and the cost of fuel. | |
Income Taxes | Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of the existing assets and liabilities, and their respective income tax bases. The Company establishes a valuation allowance when it is more likely than not that all or a portion of a deferred tax asset will not be realized. The Company’s tax positions are evaluated under a more likely than not recognition threshold and measurement analysis before they are recognized for financial statement reporting. Uncertain tax positions have been classified as noncurrent income tax liabilities unless expected to be paid within one year. The Company’s policy for interest and penalties is to recognize interest and penalties as a component of the provision for income taxes in the Consolidated Statements of Operations. Income tax assets or liabilities, which are included in allowable costs for ratemaking purposes in future years, are recorded as regulatory assets or liabilities with a corresponding deferred tax liability or asset. Investment tax credits that reduced federal income taxes in the years they arose have been deferred and are being amortized to income | |
Pension and Postretirement Benefits | Pension and Postretirement Benefits We recognize in our Consolidated Balance Sheets an asset or liability reflecting the funded status of pension and other postretirement plans with current-year changes in the funded status, that would otherwise be recognized in AOCI, recorded as a regulatory asset as this can be recovered through future rates. All plan assets are recorded at fair value. We follow the measurement date provisions of the accounting guidance, which require a year-end measurement date of plan assets and obligations for all defined benefit plans. We account for and disclose pension and postretirement benefits in accordance with the provisions of GAAP relating to the accounting for pension and other postretirement plans. These GAAP provisions require the use of assumptions, such as the discount rate for liabilities and long-term rate of return on assets, in determining the obligations, annual cost and funding requirements of the plans. Consistent with the requirements of ASC 715, we apply a disaggregated discount rate approach for determining service cost and interest cost for our defined benefit pension plans and postretirement plans. See Note 9, " Benefit Plans " for more information. | |
Repair and Maintenance Costs | Repair and Maintenance Costs Repair and maintenance costs are expensed as incurred. | |
Per Share Data | Per Share Data IPALCO is owned by AES U.S. Investments and CDPQ. IPALCO does not report earnings on a per-share basis. | |
Indianapolis Power And Light Company | ||
Entity Information [Line Items] | ||
Property, Plant and Equipment, Policy [Policy Text Block] | Property, Plant and Equipment Property, plant and equipment is stated at original cost as defined for regulatory purposes. The cost of additions to property, plant and equipment and replacements of retirement units of property are charged to plant accounts. Units of property replaced or abandoned in the ordinary course of business are retired from the plant accounts at cost; such amounts, less salvage, are charged to accumulated depreciation. Depreciation is computed by the straight-line method based on functional rates approved by the IURC and averaged 3.7%, 3.7%, and 4.2% during 2020, 2019 and 2018, respectively. Depreciation expense was $232.8 million, $228.2 million, and $235.2 million for the years ended December 31, 2020, 2019 and 2018, respectively. "Depreciation and amortization" expense on the accompanying Consolidated Statements of Operations is presented net of regulatory deferrals of depreciation expense and also includes amortization of intangible assets and amortization of previously deferred regulatory costs. | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | The following table summarizes our accounts receivable balances at December 31: As of December 31, 2020 2019 (In Thousands) Accounts receivable, net Customer receivables $ 91,335 $ 90,747 Unbilled revenue 72,334 65,822 Amounts due from related parties 734 2,992 Other 4,187 2,725 Provision for uncollectible accounts (3,155) (921) Total accounts receivable, net $ 165,435 $ 161,365 | |
Intangible Assets, Finite-Lived, Policy [Policy Text Block] | Intangible Assets Intangible assets primarily include capitalized software of $144.5 million and $139.6 million and its corresponding accumulated amortization of $85.3 million and $74.7 million, as of December 31, 2020 and 2019, respectively. Amortization expense was $10.6 million, $7.5 million and $5.5 million for the years ended December 31, 2020, 2019 and 2018, respectively. The estimated amortization expense of this capitalized software is approximately $59.0 million over the next 5 years ($11.8 million in 2021, $11.8 million in 2022, $11.8 million in 2023, $11.8 million in 2024 and $11.8 million in 2025). | |
Principles of Consolidation | Principles of Consolidation IPL’s consolidated financial statements are prepared in accordance with GAAP and in conjunction with the rules and regulations of the SEC. The consolidated financial statements include the accounts of IPL and its unregulated subsidiary, IPL Funding Corporation, which was dissolved in 2018 and was immaterial to the consolidated financial statements in the periods covered by this report. All intercompany items have been eliminated in consolidation. Certain costs for shared resources amongst IPL and IPALCO, such as labor and benefits, are allocated to each entity based on allocation methodologies that management believes to be reasonable. We have evaluated subsequent events through the date this report is issued. | |
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 management is required to make. Actual results may differ from those estimates. | |
Regulation | Regulatory Accounting The retail utility operations of IPL are subject to the jurisdiction of the IURC. IPL’s wholesale power transactions are subject to the jurisdiction of the FERC. These agencies regulate IPL’s utility business operations, tariffs, accounting, depreciation allowances, services, issuances of securities and the sale and acquisition of utility properties. The financial statements of IPL are based on GAAP, including the provisions of FASB ASC 980 “Regulated Operations,” which gives recognition to the ratemaking and accounting practices of these agencies. See also Note 2, “Regulatory Matters - Regulatory Assets and Liabilities” for a discussion of specific regulatory assets and liabilities. | |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents are stated at cost, which approximates fair value. All highly liquid short-term investments with original maturities of three months or less are considered cash equivalents. Restricted cash includes cash which is restricted as to withdrawal or usage. The nature of the restrictions includes restrictions imposed by agreements related to deposits held as collateral. The following table provides a summary of cash, cash equivalents and restricted cash amounts as shown on the Consolidated Statements of Cash Flows: As of December 31, 2020 2019 (In Thousands) Cash, cash equivalents and restricted cash Cash and cash equivalents $ 17,946 $ 42,189 Restricted cash 5 400 Total cash, cash equivalents and restricted cash $ 17,951 $ 42,589 | |
Revenues and Accounts Receivable | Revenues and Accounts Receivable Revenues related to the sale of energy are generally recognized when service is rendered or energy is delivered to customers. However, the determination of the energy sales to individual customers is based on the reading of their meters, which occurs on a systematic basis throughout the month. At the end of each month, amounts of energy delivered to certain customers since the date of the last meter reading are estimated and the corresponding unbilled revenue is accrued. In making its estimates of unbilled revenue, IPL uses complex models that consider various factors including daily generation volumes; known amounts of energy usage by nearly all residential, commercial and industrial customers; estimated line losses; and estimated customer rates based on prior period billings. Given the use of these models, and that customers are billed on a monthly cycle, we believe it is unlikely that materially different results will occur in future periods when revenue is billed. An allowance for potential credit losses is maintained and amounts are written off when normal collection efforts have been exhausted. IPL’s provision for expected credit losses included in “ Operating expenses - Operation and maintenance” on the accompanying Consolidated Statements of Operations was $4.8 million, $4.3 million and $5.9 million for the years ended December 31, 2020, 2019 and 2018, respectively. IPL’s basic rates include a provision for fuel costs as established in IPL’s most recent rate proceeding, which last adjusted IPL’s rates in December 2018. IPL is permitted to recover actual costs of purchased power and fuel consumed, subject to certain restrictions. This is accomplished through quarterly FAC proceedings, in which IPL estimates the amount of fuel and purchased power costs in future periods. Through these proceedings, IPL is also permitted to recover, in future rates, underestimated fuel and purchased power costs from prior periods, subject to certain restrictions, and therefore the over or underestimated costs are deferred or accrued and amortized into fuel expense in the same period that IPL’s rates are adjusted. See also Note 2, “ Regulatory Matters ” for a discussion of other costs that IPL is permitted to recover through periodic rate adjustment proceedings and the status of current rate adjustment proceedings. In addition, IPL is one of many transmission system owner members of MISO, a regional transmission organization which maintains functional control over the combined transmission systems of its members and manages one of the largest energy markets in the U.S. See Note 13, " Revenue " for additional information of MISO sales and other revenue streams. The following table summarizes our accounts receivable balances at December 31: As of December 31, 2020 2019 (In Thousands) Accounts receivable, net Customer receivables $ 91,335 $ 90,747 Unbilled revenue 72,334 65,822 Amounts due from related parties 734 2,992 Other 4,187 2,725 Provision for uncollectible accounts (3,155) (921) Total accounts receivable, net $ 165,435 $ 161,365 | |
Contingencies | Contingencies IPL accrues for loss contingencies when the amount of the loss is probable and estimable. IPL is subject to various environmental regulations and is involved in certain legal proceedings. If IPL’s actual environmental and/or legal obligations are different from our estimates, the recognition of the actual amounts may have a material impact on our results of operations, financial condition and cash flows; although that has not been the case during the periods covered by this report. As of December 31, 2020 and 2019, total loss contingencies accrued were $15.4 million and $4.5 million, respectively, which were included in “ Accrued and Other Current Liabilities” and " Other Non-Current Liabilities ", respectively, on the accompanying Consolidated Balance Sheets. | |
Concentration of Risk | Concentrations of Risk Substantially all of IPL’s customers are located within the Indianapolis area. Approximately 69% of IPL’s employees are covered by collective bargaining agreements in two bargaining units: a physical unit and a clerical-technical unit. IPL’s contract with the physical unit expires on December 6, 2021, and the contract with the clerical-technical unit expires February 13, 2023. Additionally, IPL has long-term coal contracts with two suppliers, and substantially all of the coal is currently mined in the state of Indiana. | |
Allowance For Funds Used During Construction | Allowance For Funds Used During ConstructionIn accordance with the Uniform System of Accounts prescribed by FERC, IPL capitalizes an allowance for the net cost of funds (interest on borrowed funds and a reasonable rate of return on equity funds) used for construction purposes during the period of construction with a corresponding credit to income. | |
Derivatives | Derivatives All derivatives are recognized as either assets or liabilities in the balance sheets and are measured at fair value. Changes in the fair value are recorded in earnings unless the derivative is designated as a cash flow hedge of a forecasted transaction or it qualifies for the normal purchases and sales exception. IPL has contracts involving the physical delivery of energy and fuel. Because these contracts qualify for the normal purchases and normal sales scope exception in ASC 815, IPL has elected to account for them as accrual contracts, which are not adjusted for changes in fair value. | |
Impairment of Long-Lived Assets | Impairment of Long-lived Assets GAAP requires that IPL test long-lived assets for impairment when indicators of impairment exist. If an asset is deemed to be impaired, IPL is required to write down the asset to its fair value with a charge to current earnings. The net book value of IPL’s property, plant, and equipment was $4.1 billion as of December 31, 2020 and 2019. In December 2020, IPL reclassified net property, plant and equipment of $74.5 million associated with the probable Petersburg Unit 1 retirement to long-term regulatory assets (for further discussion, see Note 2, “Regulatory Matters - IRP Filing” and Note 3 , "Property, Plant and Equipment" ) . IPL does not believe any of these assets are currently impaired. In making this assessment, IPL considers such factors as: the overall condition and generating and distribution capacity of the assets; the expected ability to recover additional expenditures in the assets; the anticipated demand and relative pricing of retail electricity in its service territory and wholesale electricity in the region; and the cost of fuel. | |
Income Taxes | Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of the existing assets and liabilities, and their respective income tax bases. IPL establishes a valuation allowance when it is more likely than not that all or a portion of a deferred tax asset will not be realized. IPL’s tax positions are evaluated under a more likely than not recognition threshold and measurement analysis before they are recognized for financial statement reporting. Uncertain tax positions have been classified as noncurrent income tax liabilities unless expected to be paid within one year. IPL’s policy for interest and penalties is to recognize interest and penalties as a component of the provision for income taxes in the Consolidated Statements of Operations. | |
Pension and Postretirement Benefits | Pension and Postretirement Benefits IPL recognizes in its Consolidated Balance Sheets an asset or liability reflecting the funded status of pension and other postretirement plans with current-year changes in the funded status, that would otherwise be recognized in AOCI, recorded as a regulatory asset as this can be recovered through future rates. All plan assets are recorded at fair value. IPL follows the measurement date provisions of the accounting guidance, which require a year-end measurement date of plan assets and obligations for all defined benefit plans. IPL accounts for and discloses pension and postretirement benefits in accordance with the provisions of GAAP relating to the accounting for pension and other postretirement plans. These GAAP provisions require the use of assumptions, such as the discount rate for liabilities and long-term rate of return on assets, in determining the obligations, annual cost and funding requirements of the plans. Consistent with the requirements of ASC 715, IPL applies a disaggregated discount rate approach for determining service cost and interest cost for its defined benefit pension plans and postretirement plans. | |
Repair and Maintenance Costs | Repair and Maintenance Costs Repair and maintenance costs are expensed as incurred. | |
Per Share Data | Per Share Data IPALCO owns all of the outstanding common stock of IPL. IPL does not report earnings on a per-share basis. |
Overview and Summary of Signi_3
Overview and Summary of Significant Accounting Policies Accounting Policies (Tables) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Entity Information [Line Items] | ||
Schedule of Utility Inventory [Table Text Block] | The following table summarizes our inventories balances at December 31: As of December 31, 2020 2019 (In Thousands) Inventories Fuel $ 36,953 $ 26,907 Materials and supplies, net 58,553 56,662 Total inventories $ 95,506 $ 83,569 | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | The following table summarizes our accounts receivable balances at December 31: As of December 31, 2020 2019 (In Thousands) Accounts receivable, net Customer receivables $ 91,335 $ 90,747 Unbilled revenue 72,334 65,822 Amounts due from related parties 490 2,717 Other 4,189 2,725 Provision for uncollectible accounts (3,155) (921) Total accounts receivable, net $ 165,193 $ 161,090 | |
Schedule of Cash and Cash Equivalents [Table Text Block] | The following table provides a summary of cash, cash equivalents and restricted cash amounts as shown on the Consolidated Statements of Cash Flows: As of December 31, 2020 2019 (In Thousands) Cash, cash equivalents and restricted cash Cash and cash equivalents $ 20,502 $ 48,152 Restricted cash 6,120 400 Total cash, cash equivalents and restricted cash $ 26,622 $ 48,552 | |
Reclassification out of Accumulated Other Comprehensive Income | The amounts reclassified out of Accumulated Other Comprehensive Loss by component during the years ended December 31, 2020, 2019 and 2018 are as follows (in thousands): Details about Accumulated Other Comprehensive Loss components Affected line item in the Condensed Consolidated Statements of Operations For the Years Ended December 31, 2020 2019 2018 Gains and losses on cash flow hedges (Note 5): Interest expense $ (5,422) $ — $ — Income tax expense 1,313 — — Total reclassifications for the period, net of income taxes $ (4,109) $ — $ — | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The changes in the components of Accumulated Other Comprehensive Income/(Loss) during the years ended December 31, 2020, 2019, and 2018 are as follows (in thousands): For the Years Ended December 31, 2020 2019 2018 Gains and losses on cash flow hedges (Note 5): Balance at January 1 $ (19,750) $ — $ — Other comprehensive loss before reclassifications (27,779) (19,750) — Amounts reclassified from AOCI to earnings 4,109 — — Balance at December 31 $ (43,420) $ (19,750) $ — | |
Indianapolis Power And Light Company | ||
Entity Information [Line Items] | ||
Schedule of Utility Inventory [Table Text Block] | The following table summarizes our inventories balances at December 31: As of December 31, 2020 2019 (In Thousands) Inventories Fuel $ 36,953 $ 26,907 Materials and supplies, net 58,553 56,662 Total inventories $ 95,506 $ 83,569 | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | The following table summarizes our accounts receivable balances at December 31: As of December 31, 2020 2019 (In Thousands) Accounts receivable, net Customer receivables $ 91,335 $ 90,747 Unbilled revenue 72,334 65,822 Amounts due from related parties 734 2,992 Other 4,187 2,725 Provision for uncollectible accounts (3,155) (921) Total accounts receivable, net $ 165,435 $ 161,365 | |
Schedule of Cash and Cash Equivalents [Table Text Block] | he following table provides a summary of cash, cash equivalents and restricted cash amounts as shown on the Consolidated Statements of Cash Flows: As of December 31, 2020 2019 (In Thousands) Cash, cash equivalents and restricted cash Cash and cash equivalents $ 17,946 $ 42,189 Restricted cash 5 400 Total cash, cash equivalents and restricted cash $ 17,951 $ 42,589 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Entity Information [Line Items] | |
Schedule Of Original Cost Of Utility Plant In Service | As of December 31, 2020 2019 (In Thousands) Production $ 4,191,223 $ 4,154,919 Transmission 408,380 398,903 Distribution 1,671,861 1,594,208 General plant 258,931 250,582 Total property, plant and equipment $ 6,530,395 $ 6,398,612 |
Reconciliation Of Asset Retirement Obligation Liability | The following is a roll forward of the ARO legal liability year end balances: 2020 2019 (In Thousands) Balance as of January 1 $ 204,219 $ 129,451 Liabilities settled (18,302) (9,891) Revisions to cash flow and timing estimates 1,120 78,153 Accretion expense 8,199 6,506 Balance as of December 31 $ 195,236 $ 204,219 |
Indianapolis Power And Light Company | |
Entity Information [Line Items] | |
Schedule Of Original Cost Of Utility Plant In Service | As of December 31, 2020 2019 (In Thousands) Production $ 4,191,223 $ 4,154,919 Transmission 408,380 398,903 Distribution 1,671,861 1,594,208 General plant 258,931 250,582 Total property, plant and equipment $ 6,530,395 $ 6,398,612 |
Reconciliation Of Asset Retirement Obligation Liability | The following is a roll forward of the ARO legal liability year end balances: 2020 2019 (In Thousands) Balance as of January 1 $ 204,219 $ 129,451 Liabilities settled (18,302) (9,891) Revisions to cash flow and timing estimates 1,120 78,153 Accretion expense 8,199 6,506 Balance as of December 31 $ 195,236 $ 204,219 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Entity Information [Line Items] | ||
Summary of Fair Value Assets and Liabilities Measured on a Recurring Basis, Level 3 | The fair value of assets and liabilities at December 31, 2020 measured on a recurring basis and the respective category within the fair value hierarchy for IPALCO was determined as follows: Assets and Liabilities at Fair Value Level 1 Level 2 Level 3 Fair value at December 31, 2020 Based on quoted market prices in active markets Other observable inputs Unobservable inputs (In Thousands) Financial assets: VEBA investments: Money market funds $ 16 $ 16 $ — $ — Mutual funds 3,209 — 3,209 — Total VEBA investments 3,225 16 3,209 — Financial transmission rights 543 — — 543 Total financial assets measured at fair value $ 3,768 $ 16 $ 3,209 $ 543 Financial liabilities: Interest rate hedges $ 63,215 $ — $ 63,215 $ — Total financial liabilities measured at fair value $ 63,215 $ — $ 63,215 $ — The fair value of assets and liabilities at December 31, 2019 measured on a recurring basis and the respective category within the fair value hierarchy for IPALCO was determined as follows: Assets and Liabilities at Fair Value Level 1 Level 2 Level 3 Fair value at December 31, 2019 Based on quoted market prices in active markets Other observable inputs Unobservable inputs (In Thousands) Financial assets: VEBA investments: Money market funds $ 25 $ 25 $ — $ — Mutual funds 2,854 — 2,854 — Total VEBA investments 2,879 25 2,854 — Financial transmission rights 864 — — 864 Total financial assets measured at fair value $ 3,743 $ 25 $ 2,854 $ 864 Financial liabilities: Interest rate hedges $ 26,560 $ — $ 26,560 $ — Total financial liabilities measured at fair value $ 26,560 $ — $ 26,560 $ — | |
Reconciliation of Financial Instruments Classified as Level 3 | The following table sets forth a roll forward of financial instruments, measured at fair value on a recurring basis, classified as Level 3 in the fair value hierarchy (note, amounts in this table indicate carrying values, which approximate fair values): Reconciliation of Financial Instruments Classified as Level 3 (In Thousands) Balance at January 1, 2019 $ 3,046 Unrealized gain recognized in earnings 53 Issuances 2,846 Settlements (5,081) Balance at December 31, 2019 $ 864 Issuances 1,889 Settlements (2,210) Balance at December 31, 2020 $ 543 | |
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: December 31, 2020 December 31, 2019 Face Value Fair Value Face Value Fair Value (In Thousands) Fixed-rate $ 2,683,800 $ 3,295,588 $ 2,523,800 $ 2,876,140 Variable-rate 75,000 75,000 155,000 155,000 Total indebtedness $ 2,758,800 $ 3,370,588 $ 2,678,800 $ 3,031,140 | |
Indianapolis Power And Light Company | ||
Entity Information [Line Items] | ||
Fair Value Assets And Liabilities Measured On A Recurring Basis Unobservable Inputs [Table Text Block] | The fair value of assets and liabilities at December 31, 2020 measured on a recurring basis and the respective category within the fair value hierarchy for IPL was determined as follows: Assets and Liabilities at Fair Value Level 1 Level 2 Level 3 Fair value at December 31, 2020 Based on quoted market prices in active markets Other observable inputs Unobservable inputs (In Thousands) Financial assets: Financial transmission rights $ 543 $ — $ — $ 543 Total financial assets measured at fair value $ 543 $ — $ — $ 543 The fair value of assets and liabilities at December 31, 2019 measured on a recurring basis and the respective category within the fair value hierarchy for IPL was determined as follows: Assets and Liabilities at Fair Value Level 1 Level 2 Level 3 Fair value at December 31, 2019 Based on quoted market prices in active markets Other observable inputs Unobservable inputs (In Thousands) Financial assets: Financial transmission rights $ 864 $ — $ — $ 864 Total financial assets measured at fair value $ 864 $ — $ — $ 864 | |
Reconciliation of Financial Instruments Classified as Level 3 | The following table sets forth a roll forward of financial instruments, measured at fair value on a recurring basis, classified as Level 3 in the fair value hierarchy (note, amounts in this table indicate carrying values, which approximate fair values): Reconciliation of Financial Instruments Classified as Level 3 (In Thousands) Balance at January 1, 2019 $ 3,046 Unrealized gain recognized in earnings 53 Issuances 2,846 Settlements (5,081) Balance at December 31, 2019 $ 864 Issuances 1,889 Settlements (2,210) Balance at December 31, 2020 $ 543 | |
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: December 31, 2020 December 31, 2019 Face Value Fair Value Face Value Fair Value (In Thousands) Fixed-rate $ 1,803,800 $ 2,302,973 $ 1,713,800 $ 2,049,758 Variable-rate 75,000 75,000 90,000 90,000 Total indebtedness $ 1,878,800 $ 2,377,973 $ 1,803,800 $ 2,139,758 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Entity Information [Line Items] | |
Schedule Of Regulatory Assets And Liabilities [Table Text Block] | 2020 2019 Recovery Period (In Thousands) Regulatory Assets Current: Undercollections of rate riders $ 31,569 $ 22,216 Approximately 1 year (1) Costs being recovered through basic rates and charges 13,861 15,182 Approximately 1 year (1) Total current regulatory assets 45,430 37,398 Long-term: Unrecognized pension and other postretirement benefit plan costs 149,374 176,646 Various (2) Deferred MISO costs 61,267 74,660 Through 2026 (1) Unamortized Petersburg Unit 4 carrying charges and certain other costs 5,975 7,030 Through 2026 (1)(3) Unamortized reacquisition premium on debt 17,018 18,330 Over remaining life of debt Environmental projects 74,637 78,021 Through 2046 (1)(3) COVID-19 6,391 — To be determined TDSIC projects 2,747 — 36.3 years (1)(3) Petersburg Unit 1 retirement 74,545 — Through 2035 (3)(5) Other miscellaneous 847 927 Various (4) Total long-term regulatory assets 392,801 355,614 Total regulatory assets $ 438,231 $ 393,012 Regulatory Liabilities Current: Overcollections and other credits being passed to customers through rate riders $ 29,493 $ 51,790 Approximately 1 year (1) FTRs 543 864 Approximately 1 year (1) Total current regulatory liabilities 30,036 52,654 Long-term: ARO and accrued asset removal costs 723,897 719,680 Not applicable Deferred income taxes payable to customers through rates 112,957 122,156 Various Long-term portion of credits being passed to customers through rate riders — 3,337 Through 2020 Other miscellaneous 2,506 1,257 To be determined Total long-term regulatory liabilities 839,360 846,430 Total regulatory liabilities $ 869,396 $ 899,084 (1) Recovered (credited) per specific rate orders (2) IPL receives a return on its discretionary funding (3) Recovered with a current return (4) The majority of these costs are being recovered in basic rates and charges through 2026. For the remainder, recovery is probable, but the timing is not yet determined. (5) Recovered per regulatory precedent. |
Indianapolis Power And Light Company | |
Entity Information [Line Items] | |
Schedule Of Regulatory Assets And Liabilities [Table Text Block] | 2020 2019 Recovery Period (In Thousands) Regulatory Assets Current: Undercollections of rate riders $ 31,569 $ 22,216 Approximately 1 year (1) Costs being recovered through basic rates and charges 13,861 15,182 Approximately 1 year (1) Total current regulatory assets 45,430 37,398 Long-term: Unrecognized pension and other postretirement benefit plan costs 149,374 176,646 Various (2) Deferred MISO costs 61,267 74,660 Through 2026 (1) Unamortized Petersburg Unit 4 carrying charges and certain other costs 5,975 7,030 Through 2026 (1)(3) Unamortized reacquisition premium on debt 17,018 18,330 Over remaining life of debt Environmental projects 74,637 78,021 Through 2046 (1)(3) COVID-19 6,391 — To be determined TDSIC projects 2,747 — 36.3 years (1)(3) Petersburg Unit 1 retirement 74,545 — Through 2035 (3)(5) Other miscellaneous 847 927 Various (4) Total long-term regulatory assets 392,801 355,614 Total regulatory assets $ 438,231 $ 393,012 Regulatory Liabilities Current: Overcollections and other credits being passed to customers through rate riders $ 29,493 $ 51,790 Approximately 1 year (1) FTRs 543 864 Approximately 1 year (1) Total current regulatory liabilities 30,036 52,654 Long-term: ARO and accrued asset removal costs 723,897 719,680 Not applicable Deferred income taxes payable to customers through rates 112,957 122,156 Various Long-term portion of credits being passed to customers through rate riders — 3,337 Through 2020 Other miscellaneous 2,506 1,257 To be determined Total long-term regulatory liabilities 839,360 846,430 Total regulatory liabilities $ 869,396 $ 899,084 (1) Recovered (credited) per specific rate orders (2) IPL receives a return on its discretionary funding (3) Recovered with a current return (4) The majority of these costs are being recovered in basic rates and charges through 2026. For the remainder, recovery is probable, but the timing is not yet determined. |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative [Line Items] | ||
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) [Table Text Block] | The following tables provide information on gains or losses recognized in AOCL for the cash flow hedges for the periods indicated: Interest Rate Hedges for the Year Ended December 31, $ in thousands (net of tax) 2020 2019 2018 Beginning accumulated derivative gain / (loss) in AOCL $ (19,750) $ — $ — Net losses associated with current period hedging transactions (27,779) (19,750) — Net losses reclassified to interest expense, net of tax 4,109 — — Ending accumulated derivative loss in AOCL $ (43,420) $ (19,750) $ — Loss expected to be reclassified to earnings in the next twelve months $ (5,375) Maximum length of time that we are hedging our exposure to variability in future cash flows related to forecasted transactions (in months) 45 | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | December 31, Commodity Hedging Designation Balance sheet classification 2020 2019 Financial transmission rights Not a Cash Flow Hedge Prepayments and other current assets $ 543 $ 864 Interest rate hedges Cash Flow Hedge Derivative liabilities, current $ — $ 26,560 Interest rate hedges Cash Flow Hedge Derivative liabilities, non-current $ 63,215 $ — | |
Schedule of Derivative Instruments [Table Text Block] | At December 31, 2020 , IPL's outstanding derivative instruments were as follows: Commodity Accounting Treatment (a) Unit Purchases Sales Net Purchases/(Sales) Interest rate hedges Designated USD $ 400,000 $ — $ 400,000 FTRs Not Designated MWh 3,168 — 3,168 (a) Refers to whether the derivative instruments have been designated as a cash flow hedge. | |
Subsidiaries [Member] | ||
Derivative [Line Items] | ||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | December 31, Commodity Hedging Designation Balance sheet classification 2020 2019 Financial transmission rights Not a Cash Flow Hedge Prepayments and other current assets $ 543 $ 864 | |
Schedule of Derivative Instruments [Table Text Block] | At December 31, 2020 , IPL's outstanding derivative instruments were as follows: Commodity Accounting Treatment (a) Unit Purchases Sales Net Purchases/(Sales) FTRs Not Designated MWh 3,168 — 3,168 (a) Refers to whether the derivative instruments have been designated as a cash flow hedge. |
Equity (Tables)
Equity (Tables) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Entity Information [Line Items] | ||
Schedule Of Preferred Stock | At December 31, 2020, 2019 and 2018, preferred stock consisted of the following: December 31, 2020 December 31, Shares Call Price 2020 2019 2018 Par Value, plus premium, if applicable (In Thousands) Cumulative $100 par value, authorized 2,000,000 shares 4% Series 47,611 $ 118.00 $ 5,410 $ 5,410 $ 5,410 4.2% Series 19,331 $ 103.00 1,933 1,933 1,933 4.6% Series 2,481 $ 103.00 248 248 248 4.8% Series 21,930 $ 101.00 2,193 2,193 2,193 5.65% Series 500,000 $ 100.00 50,000 50,000 50,000 Total cumulative preferred stock 591,353 $ 59,784 $ 59,784 $ 59,784 | |
Indianapolis Power And Light Company | ||
Entity Information [Line Items] | ||
Schedule Of Preferred Stock | At December 31, 2020, 2019 and 2018, preferred stock consisted of the following: December 31, 2020 December 31, Shares Call Price 2020 2019 2018 Par Value, plus premium, if applicable (In Thousands) Cumulative $100 par value, authorized 2,000,000 shares 4% Series 47,611 $ 118.00 $ 5,410 $ 5,410 $ 5,410 4.2% Series 19,331 $ 103.00 1,933 1,933 1,933 4.6% Series 2,481 $ 103.00 248 248 248 4.8% Series 21,930 $ 101.00 2,193 2,193 2,193 5.65% Series 500,000 $ 100.00 50,000 50,000 50,000 Total cumulative preferred stock 591,353 $ 59,784 $ 59,784 $ 59,784 |
Debt (Tables)
Debt (Tables) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Entity Information [Line Items] | ||
Schedule Long-Term Indebtedness | The following table presents our long-term debt: December 31, Series Due 2020 2019 (In Thousands) IPL first mortgage bonds: 3.875% (1) August 2021 $ 55,000 $ 55,000 3.875% (1) August 2021 40,000 40,000 3.125% (1) 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 350,000 350,000 4.875% November 2048 105,000 105,000 0.75% (2) April 2026 30,000 — 0.95% (2) April 2026 60,000 — Unamortized discount – net (6,006) (6,156) Deferred financing costs (17,384) (16,629) Total IPL first mortgage bonds 1,780,410 1,691,015 IPL unsecured debt: Variable (3) December 2020 — 30,000 Variable (3) December 2020 — 60,000 Deferred financing costs — (114) Total IPL unsecured debt — 89,886 Total long-term debt – IPL 1,780,410 1,780,901 Long-term debt – IPALCO: Term Loan July 2020 — 65,000 3.45% Senior Secured Notes July 2020 — 405,000 3.70% Senior Secured Notes September 2024 405,000 405,000 4.25% Senior Secured Notes May 2030 475,000 — Unamortized discount – net (625) (313) Deferred financing costs (8,600) (3,959) Total long-term debt – IPALCO 870,775 870,728 Total consolidated IPALCO long-term debt 2,651,185 2,651,629 Less: current portion of long-term debt 94,907 559,199 Net consolidated IPALCO long-term debt $ 2,556,278 $ 2,092,430 (1) First mortgage bonds issued to the Indiana Finance Authority, to secure the loan of proceeds from tax-exempt bonds issued by the Indiana Finance Authority. | |
Schedule Of Maturities On Long-Term Indebtedness | Maturities on long-term indebtedness subsequent to December 31, 2020, are as follows: Year Amount (In Thousands) 2021 $ 95,000 2022 — 2023 — 2024 445,000 2025 — Thereafter 2,143,800 Total $ 2,683,800 | |
Indianapolis Power And Light Company | ||
Entity Information [Line Items] | ||
Schedule Long-Term Indebtedness | The following table presents IPL’s long-term debt: December 31, Series Due 2020 2019 (In Thousands) IPL first mortgage bonds: 3.875% (1) August 2021 $ 55,000 $ 55,000 3.875% (1) August 2021 40,000 40,000 3.125% (1) 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 350,000 350,000 4.875% November 2048 105,000 105,000 0.75% (2) April 2026 30,000 — 0.95% (2) April 2026 60,000 — Unamortized discount – net (6,006) (6,156) Deferred financing costs (17,384) (16,629) Total IPL first mortgage bonds 1,780,410 1,691,015 IPL unsecured debt: Variable (3) December 2020 — 30,000 Variable (3) December 2020 — 60,000 Deferred financing costs — (114) Total IPL unsecured debt — 89,886 Total consolidated IPL long-term debt 1,780,410 1,780,901 Less: current portion of long-term debt 94,907 89,886 Net consolidated IPL long-term debt $ 1,685,503 $ 1,691,015 (1) First mortgage bonds issued to the Indiana Finance Authority, to secure the loan of proceeds from tax-exempt bonds issued by the Indiana Finance Authority. | |
Schedule Of Maturities On Long-Term Indebtedness | Maturities on long-term indebtedness subsequent to December 31, 2020, are as follows: Year Amount (In Thousands) 2021 $ 95,000 2022 — 2023 — 2024 40,000 2025 — Thereafter 1,668,800 Total $ 1,803,800 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Entity Information [Line Items] | |
Schedule Of Federal And State Income Taxed Charged To Income | Federal and state income taxes charged to income are as follows: 2020 2019 2018 (In Thousands) Components of income tax expense: Current income taxes: Federal $ 19,489 $ 17,229 $ 20,341 State 6,249 3,022 8,843 Total current income taxes 25,738 20,251 29,184 Deferred income taxes: Federal 323 7,547 (15,150) State 2,531 7,745 326 Total deferred income taxes 2,854 15,292 (14,824) Net amortization of investment credit — (15) (911) Total income tax expense $ 28,592 $ 35,528 $ 13,449 |
Schedule Of Effective Income Tax Rate | The reasons for the difference, stated as a percentage of pretax income, are as follows: 2020 2019 2018 Federal statutory tax rate 21.0 % 21.0 % 21.0 % State income tax, net of federal tax benefit 4.2 % 4.4 % 5.6 % Research and development credit — % — % (1.9) % Depreciation flow through and amortization (6.8) % (5.7) % (15.6) % Additional funds used during construction - equity 1.0 % 0.2 % 0.3 % Other – net 1.2 % 1.3 % (0.3) % Effective tax rate 20.6 % 21.2 % 9.1 % |
Schedule Of Deferred Tax Assets And Liabilities | The significant items comprising IPALCO’s net accumulated deferred tax liability recognized on the audited Consolidated Balance Sheets as of December 31, 2020 and 2019, are as follows: 2020 2019 (In Thousands) Deferred tax liabilities: Relating to utility property, net $ 408,291 $ 411,182 Regulatory assets recoverable through future rates 82,783 69,156 Other 5,485 6,192 Total deferred tax liabilities 496,559 486,530 Deferred tax assets: Investment tax credit 6 7 Regulatory liabilities including ARO 197,657 191,676 Employee benefit plans 3,866 8,545 Other 19,316 13,441 Total deferred tax assets 220,845 213,669 Deferred income tax liability – net $ 275,714 $ 272,861 |
Reconciliation Of Unrecognized Tax Benefits | The following is a reconciliation of the beginning and ending amounts of unrecognized tax benefits for the years ended December 31, 2020, 2019 and 2018: 2020 2019 2018 (In Thousands) Unrecognized tax benefits at January 1 $ 7,056 $ 7,056 $ 7,049 Gross increases – current period tax positions 312 — — Gross decreases – prior period tax positions — — 7 Unrecognized tax benefits at December 31 $ 7,368 $ 7,056 $ 7,056 |
Indianapolis Power And Light Company | |
Entity Information [Line Items] | |
Schedule Of Federal And State Income Taxed Charged To Income | Federal and state income taxes charged to income are as follows: 2020 2019 2018 (In Thousands) Components of income tax expense: Current income taxes: Federal $ 28,395 $ 23,941 $ 26,021 State 8,661 4,370 11,215 Total current income taxes 37,056 28,311 37,236 Deferred income taxes: Federal 503 7,578 (15,080) State 2,576 7,556 345 Total deferred income taxes 3,079 15,134 (14,735) Net amortization of investment credit — (15) (911) Total income tax expense $ 40,135 $ 43,430 $ 21,590 |
Schedule Of Effective Income Tax Rate | The reasons for the difference, stated as a percentage of pretax income, are as follows: 2020 2019 2018 Federal statutory tax rate 21.0 % 21.0 % 21.0 % State income tax, net of federal tax benefit 4.2 % 4.4 % 5.6 % Amortization of investment tax credits — % — % (0.5) % Research and development credit — % — % (1.6) % Depreciation flow through and amortization (5.1) % (4.7) % (12.6) % Additional funds used during construction - equity 0.7 % 0.2 % 0.3 % Other – net 1.0 % 0.8 % (0.1) % Effective tax rate 21.8 % 21.7 % 12.1 % |
Schedule Of Deferred Tax Assets And Liabilities | The significant items comprising IPL’s net accumulated deferred tax liability recognized on the audited Consolidated Balance Sheets as of December 31, 2020 and 2019, are as follows: 2020 2019 (In Thousands) Deferred tax liabilities: Relating to utility property, net $ 408,291 $ 411,182 Regulatory assets recoverable through future rates 82,783 69,156 Other 5,323 5,742 Total deferred tax liabilities 496,397 486,080 Deferred tax assets: Investment tax credit 6 7 Regulatory liabilities including ARO 197,657 191,676 Employee benefit plans 3,866 8,556 Other 5,069 6,682 Total deferred tax assets 206,598 206,921 Deferred income tax liability – net $ 289,799 $ 279,159 |
Reconciliation Of Unrecognized Tax Benefits | The following is a reconciliation of the beginning and ending amounts of unrecognized tax benefits for the years ended December 31, 2020, 2019 and 2018: 2020 2019 2018 (In Thousands) Unrecognized tax benefits at January 1 $ 7,056 $ 7,056 $ 7,049 Gross increases – current period tax positions 312 — — Gross decreases – prior period tax positions — — 7 Unrecognized tax benefits at December 31 $ 7,368 $ 7,056 $ 7,056 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Entity Information [Line Items] | |
Schedule Of Defined Benefit Plans Disclosures | The following table presents information relating to the Pension Plans: Pension benefits 2020 2019 (In Thousands) Change in benefit obligation: Projected benefit obligation at January 1 $ 782,795 $ 697,228 Service cost 8,272 7,412 Interest cost 22,151 27,343 Actuarial loss/(gain) 66,827 88,311 Amendments (primarily increases in pension bands) 967 — Benefits paid (38,487) (37,499) Projected benefit obligation at December 31 842,525 782,795 Change in plan assets: Fair value of plan assets at January 1 769,704 684,485 Actual return on plan assets 118,716 122,690 Employer contributions 87 28 Benefits paid (38,487) (37,499) Fair value of plan assets at December 31 850,020 769,704 Funded (unfunded) status $ 7,495 $ (13,091) Amounts recognized in the statement of financial position: Non-current assets $ 8,669 $ — Non-current liabilities (1,174) (13,091) Net amount recognized at end of year $ 7,495 $ (13,091) Sources of change in regulatory assets (1) : Prior service cost arising during period $ 967 $ — Net (gain)/loss arising during period (14,110) (4,472) Amortization of prior service cost (3,677) (3,823) Amortization of loss (8,115) (11,084) Total recognized in regulatory assets $ (24,935) $ (19,379) Amounts included in regulatory assets: Net loss $ 145,526 $ 167,750 Prior service cost 11,613 14,323 Total amounts included in regulatory assets $ 157,139 $ 182,073 |
Information For Pension Plans With A Benefit Obligation In Excess Of Plan Assets | Pension benefits 2020 2019 (In Thousands) Benefit obligation $ 842,525 $ 782,795 Plan assets 850,020 769,704 Benefit obligation in excess of plan assets $ (7,495) $ 13,091 |
Information For Pension Plans With An Accumulated Benefit Obligation In Excess Of Plan Assets | Pension benefits 2020 2019 (In Thousands) Accumulated benefit obligation $ 830,458 $ 771,592 Plan assets 850,020 769,704 Accumulated benefit obligation in excess of plan assets $ (19,562) $ 1,888 |
Schedule Of Net Periodic Benefit Costs | Pension benefits for 2020 2019 2018 (In Thousands) Components of net periodic benefit cost: Service cost $ 8,272 $ 7,412 $ 8,450 Interest cost 22,151 27,343 25,220 Expected return on plan assets (37,779) (29,907) (40,801) Amortization of prior service cost 3,677 3,823 3,837 Recognized actuarial loss 8,115 11,084 11,403 Recognized settlement loss — — 1,230 Total pension cost 4,436 19,755 9,339 Less: amounts capitalized 372 1,237 1,223 Amount charged to expense $ 4,064 $ 18,518 $ 8,116 Rates relevant to each year’s expense calculations: Discount rate – defined benefit pension plan 3.33 % 4.36 % 3.67 % Discount rate – supplemental retirement plan 3.05 % 4.24 % 3.60 % Expected return on defined benefit pension plan assets 5.05 % 4.50 % 5.45 % Expected return on supplemental retirement plan assets 4.45 % 4.50 % 5.45 % |
Schedule Of Asset Allocation Guidelines | The following table summarizes the Company’s target pension plan allocation for 2020: Asset Category: Target Allocations Equity Securities 36% Debt Securities 64% |
Schedule Of Fair Value Of Pension Plan Assets | Fair Value Measurements at December 31, 2020 (in thousands) Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Asset Category Total (Level 1) (Level 2) % Cash and cash equivalents $ 2,221 $ 2,221 $ — — % Government debt securities 118,255 131 118,124 14 % Mutual fund - equities 323,253 2,839 320,414 38 % Mutual fund - debt 406,291 1,578 404,713 48 % Total $ 850,020 $ 6,769 $ 843,251 100 % Fair Value Measurements at December 31, 2019 (in thousands) Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Asset Category Total (Level 1) (Level 2) % Cash and cash equivalents $ 2,599 $ 2,599 $ — — % Government debt securities 154,798 39 154,759 20 % Mutual fund - equities 214,369 2,744 211,625 28 % Mutual fund - debt 397,938 1,664 396,274 52 % Total (1) $ 769,704 $ 7,046 $ 762,658 100 % |
Schedule Of Expected Benefit Payments | Expected benefit payments are expected to be paid out of the Pension Plans as follows: Year Pension Benefits (In Thousands) 2021 $ 41,552 2022 42,715 2023 43,371 2024 43,827 2025 44,467 2026 through 2030 224,933 |
Indianapolis Power And Light Company | |
Entity Information [Line Items] | |
Schedule Of Defined Benefit Plans Disclosures | Pension benefits 2020 2019 (In Thousands) Change in benefit obligation: Projected benefit obligation at January 1 $ 782,795 $ 697,228 Service cost 8,272 7,412 Interest cost 22,151 27,343 Actuarial loss/(gain) 66,827 88,311 Amendments (primarily increases in pension bands) 967 — Benefits paid (38,487) (37,499) Projected benefit obligation at December 31 842,525 782,795 Change in plan assets: Fair value of plan assets at January 1 769,704 684,485 Actual return on plan assets 118,716 122,690 Employer contributions 87 28 Benefits paid (38,487) (37,499) Fair value of plan assets at December 31 850,020 769,704 Funded (unfunded) status $ 7,495 $ (13,091) Amounts recognized in the statement of financial position: Non-current assets $ 8,669 $ — Non-current liabilities (1,174) (13,091) Net amount recognized at end of year $ 7,495 $ (13,091) Sources of change in regulatory assets (1) : Prior service cost arising during period $ 967 $ — Net (gain)/loss arising during period (14,110) (4,472) Amortization of prior service cost (3,677) (3,823) Amortization of loss (8,115) (11,084) Total recognized in regulatory assets $ (24,935) $ (19,379) Amounts included in regulatory assets: Net loss $ 145,526 $ 167,750 Prior service cost 11,613 14,323 Total amounts included in regulatory assets $ 157,139 $ 182,073 |
Information For Pension Plans With A Benefit Obligation In Excess Of Plan Assets | Pension benefits 2020 2019 (In Thousands) Benefit obligation $ 842,525 $ 782,795 Plan assets 850,020 769,704 Benefit obligation in excess of plan assets $ (7,495) $ 13,091 |
Information For Pension Plans With An Accumulated Benefit Obligation In Excess Of Plan Assets | Pension benefits 2020 2019 (In Thousands) Accumulated benefit obligation $ 830,458 $ 771,592 Plan assets 850,020 769,704 Accumulated benefit obligation in excess of plan assets $ (19,562) $ 1,888 |
Schedule Of Net Periodic Benefit Costs | Pension benefits for 2020 2019 2018 (In Thousands) Components of net periodic benefit cost: Service cost $ 8,272 $ 7,412 $ 8,450 Interest cost 22,151 27,343 25,220 Expected return on plan assets (37,779) (29,907) (40,801) Amortization of prior service cost 3,677 3,823 3,837 Recognized actuarial loss 8,115 11,084 11,403 Recognized settlement loss — — 1,230 Total pension cost 4,436 19,755 9,339 Less: amounts capitalized 372 1,237 1,223 Amount charged to expense $ 4,064 $ 18,518 $ 8,116 Rates relevant to each year’s expense calculations: Discount rate – defined benefit pension plan 3.33 % 4.36 % 3.67 % Discount rate – supplemental retirement plan 3.05 % 4.24 % 3.60 % Expected return on defined benefit pension plan assets 5.05 % 4.50 % 5.45 % Expected return on supplemental retirement plan assets 4.45 % 4.50 % 5.45 % |
Schedule Of Asset Allocation Guidelines | Asset Category: Target Allocations Equity Securities 36% Debt Securities 64% |
Schedule Of Fair Value Of Pension Plan Assets | Fair Value Measurements at December 31, 2020 (in thousands) Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Asset Category Total (Level 1) (Level 2) % Cash and cash equivalents $ 2,221 $ 2,221 $ — — % Government debt securities 118,255 131 118,124 14 % Mutual fund - equities 323,253 2,839 320,414 38 % Mutual fund - debt 406,291 1,578 404,713 48 % Total $ 850,020 $ 6,769 $ 843,251 100 % Fair Value Measurements at December 31, 2019 (in thousands) Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Asset Category Total (Level 1) (Level 2) % Cash and cash equivalents $ 2,599 $ 2,599 $ — — % Government debt securities 154,798 39 154,759 20 % Mutual fund - equities 214,369 2,744 211,625 28 % Mutual fund - debt 397,938 1,664 396,274 52 % Total (1) $ 769,704 $ 7,046 $ 762,658 100 % |
Schedule Of Expected Benefit Payments | Year Pension Benefits (In Thousands) 2021 $ 41,552 2022 42,715 2023 43,371 2024 43,827 2025 44,467 2026 through 2030 224,933 |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Summary Of Company's Reporting Segments | The following table provides information about IPALCO’s business segments (in thousands): 2020 2019 2018 Utility All Other Total Utility All Other Total Utility All Other Total Revenues $ 1,352,985 $ — $ 1,352,985 $ 1,481,643 $ — $ 1,481,643 $ 1,450,505 $ — $ 1,450,505 Depreciation and amortization $ 246,896 $ — $ 246,896 $ 240,314 $ — $ 240,314 $ 232,332 $ — $ 232,332 Interest expense $ 87,281 $ 42,212 $ 129,493 $ 89,014 $ 32,757 $ 121,771 $ 64,472 $ 31,037 $ 95,509 Earnings/(loss) from operations before income tax $ 184,174 $ (45,615) $ 138,559 $ 200,707 $ (32,786) $ 167,921 $ 178,953 $ (31,479) $ 147,474 Capital expenditures (1) $ 235,736 $ — $ 235,736 $ 219,242 $ — $ 219,242 $ 235,764 $ — $ 235,764 (1) Capital expenditures includes $0.0 million, $5.6 million and $11.4 million of payments for financed capital expenditures in 2020, 2019 and 2018, respectively. As of December 31, 2020 As of December 31, 2019 As of December 31, 2018 Total assets $ 4,952,408 $ 17,511 $ 4,969,919 $ 4,918,408 $ 10,261 $ 4,928,669 $ 4,851,712 $ 10,341 $ 4,862,053 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Disaggregation of Revenue [Table Text Block] | IPL’s revenue from contracts with customers was $1,326.6 million, $1,455.3 million and $1,440.7 million for the years ended December 31, 2020 , 2019 and 2018, respectively. The following table presents our revenue from contracts with customers and other revenue (in thousands): For the Years Ended December 31, 2020 2019 2018 Retail Revenues Retail revenue from contracts with customers: Residential $ 566,668 $ 589,719 $ 588,031 Small commercial and industrial 194,904 215,878 217,896 Large commercial and industrial 484,230 548,551 565,720 Public lighting 9,115 7,249 9,797 Other (1) 14,402 14,136 10,427 Total retail revenue from contracts with customers 1,269,319 1,375,533 1,391,871 Alternative revenue programs 24,781 23,841 4,594 Wholesale Revenues Wholesale revenues from contracts with customers 46,482 68,474 38,789 Miscellaneous Revenues Transmission and other revenue from contracts with customers 10,794 11,335 10,057 Other miscellaneous revenues (2) 1,609 2,460 5,194 Total Revenues $ 1,352,985 $ 1,481,643 $ 1,450,505 | |
Revenue from Contract with Customer [Text Block] | REVENUE Revenue is primarily earned from retail and wholesale electricity sales and electricity transmission and distribution delivery services. Revenue is recognized upon transfer of control of promised goods or services to customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. Revenue is recorded net of any taxes assessed on and collected from customers, which are remitted to the governmental authorities. Retail revenues - IPL energy sales to utility customers are based on the reading of meters at the customer’s location that occurs on a systematic basis throughout the month. IPL sells electricity directly to end-users, such as homes and businesses, and bills customers directly. Retail revenues have a single performance obligation, as the promise to transfer energy and other distribution and/or transmission services are not separately identifiable from other promises in the contracts and, therefore, are not distinct. Additionally, as the performance obligation is satisfied over time as energy is delivered, and the same method is used to measure progress, the performance obligation meets the criteria to be considered a series. In exchange for the exclusive right to sell or distribute electricity in our service area, IPL is subject to rate regulation by federal and state regulators. This regulation sets the framework for the prices (“tariffs”) that IPL is allowed to charge customers for electric services. Since tariffs are approved by the regulator, the price that IPL has the right to bill corresponds directly with the value to the customer of IPL’s performance completed in each period. Therefore, revenue under these contracts is recognized using an output method measured by the MWhs delivered each month at the approved tariff. Customer payments are typically due on a monthly basis, though see Note 2, " Regulatory Matters - IURC COVID-19 Orders " for a discussion of the orders requiring expanded payment arrangements for customers. Wholesale revenues - Power produced at the generation stations in excess of our retail load is sold into the MISO market. Such sales are made at either the day-ahead or real-time hourly market price, and these sales are classified as wholesale revenues. We sell to and purchase power from MISO, and such sales and purchases are settled and accounted for on a net hourly basis. In the MISO market, wholesale revenue is recorded at the spot price based on the quantities of MWh delivered in each hour during each month. As a member of MISO, we are obligated to declare the availability of our energy production into the wholesale energy market, but we are not obligated to commit our previously declared availability. As such, contract terms end as the energy for each day is delivered to the market in the case of the day-ahead market and for each hour in the case of the real-time market. Miscellaneous revenues - Miscellaneous revenues are mainly comprised of MISO transmission revenues. MISO transmission revenues are earned when IPL’s power lines are used in transmission of energy by power producers other than IPL. As IPL owns and operates transmission lines in central and southern Indiana, demand charges collected from network customers by MISO are allocated to the appropriate transmission owners (including IPL) and recognized as transmission revenues. Capacity revenues are also included in miscellaneous revenues, but these were not material for the period presented. Transmission revenues have a single performance obligation, as transmission services represent a distinct service. Additionally, as the performance obligation is satisfied over time and the same method is used to measure progress, the performance obligation meets the criteria to be considered a series. The price that the transmission operator has the right to bill corresponds directly with the value to the customer of IPL’s performance completed in each period as the price paid is the transmission operator's allocation of the tariff rate (as approved by the regulator) charged to network participants. IPL’s revenue from contracts with customers was $1,326.6 million, $1,455.3 million and $1,440.7 million for the years ended December 31, 2020 , 2019 and 2018, respectively. The following table presents our revenue from contracts with customers and other revenue (in thousands): For the Years Ended December 31, 2020 2019 2018 Retail Revenues Retail revenue from contracts with customers: Residential $ 566,668 $ 589,719 $ 588,031 Small commercial and industrial 194,904 215,878 217,896 Large commercial and industrial 484,230 548,551 565,720 Public lighting 9,115 7,249 9,797 Other (1) 14,402 14,136 10,427 Total retail revenue from contracts with customers 1,269,319 1,375,533 1,391,871 Alternative revenue programs 24,781 23,841 4,594 Wholesale Revenues Wholesale revenues from contracts with customers 46,482 68,474 38,789 Miscellaneous Revenues Transmission and other revenue from contracts with customers 10,794 11,335 10,057 Other miscellaneous revenues (2) 1,609 2,460 5,194 Total Revenues $ 1,352,985 $ 1,481,643 $ 1,450,505 (1) Other retail revenue from contracts with customers includes miscellaneous charges to customers (2) Other miscellaneous revenue includes lease and other miscellaneous revenues not accounted for under ASC 606 The balances of receivables from contracts with customers are $163.8 million and $155.0 million as of December 31, 2020 and December 31, 2019, respectively. Payment terms for all receivables from contracts with customers typically do not extend beyond 30 days, though see Note 2, "Regulatory Matters - IURC COVID-19 Order" for a discussion of orders requiring expanded payment arrangements for customers. The Company has elected to apply the optional disclosure exemptions under ASC 606. Therefore, the Company has not included disclosure pertaining to revenue expected to be recognized in any future year related to remaining performance obligations, as we exclude contracts with an original length of one year or less, contracts for which we recognize revenue based on the amount we have the right to invoice for services performed, and contracts with variable consideration allocated entirely to a wholly unsatisfied performance obligation when the consideration relates specifically to our efforts to satisfy the performance obligation and depicts the amount to which we expect to be entitled. Contract Balances — The timing of revenue recognition, billings, and cash collections results in accounts receivable and contract liabilities. The contract liabilities from contracts with customers were $0.5 million as of December 31, 2020. During the year ended December 31, 2020, we recognized revenue of $1.3 million related to this contract liability balance, respectively. | |
Indianapolis Power And Light Company | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of Revenue [Table Text Block] | he following table presents IPL's revenue from contracts with customers and other revenue (in thousands): For the Years Ended December 31, 2020 2019 2018 Retail Revenues Retail revenue from contracts with customers: Residential $ 566,668 $ 589,719 $ 588,031 Small commercial and industrial 194,904 215,878 217,896 Large commercial and industrial 484,230 548,551 565,720 Public lighting 9,115 7,249 9,797 Other (1) 14,402 14,136 10,427 Total retail revenue from contracts with customers 1,269,319 1,375,533 1,391,871 Alternative revenue programs 24,781 23,841 4,594 Wholesale Revenues Wholesale revenues from contracts with customers 46,482 68,474 38,789 Miscellaneous Revenues Transmission and other revenue from contracts with customers 10,794 11,335 10,057 Other miscellaneous revenues (2) 1,609 2,460 5,194 Total Revenues $ 1,352,985 $ 1,481,643 $ 1,450,505 (1) Other retail revenue from contracts with customers includes miscellaneous charges to customers (2) Other miscellaneous revenue includes lease and other miscellaneous revenues not accounted for under ASC 606 | |
Revenue from Contract with Customer [Text Block] | Revenue is primarily earned from retail and wholesale electricity sales and electricity transmission and distribution delivery services. Revenue is recognized upon transfer of control of promised goods or services to customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. Revenue is recorded net of any taxes assessed on and collected from customers, which are remitted to the governmental authorities. Retail revenues - IPL energy sales to utility customers are based on the reading of meters at the customer’s location that occurs on a systematic basis throughout the month. IPL sells electricity directly to end-users, such as homes and businesses, and bills customers directly. Retail revenues have a single performance obligation, as the promise to transfer energy and other distribution and/or transmission services are not separately identifiable from other promises in the contracts and, therefore, are not distinct. Additionally, as the performance obligation is satisfied over time as energy is delivered, and the same method is used to measure progress, the performance obligation meets the criteria to be considered a series. In exchange for the exclusive right to sell or distribute electricity in our service area, IPL is subject to rate regulation by federal and state regulators. This regulation sets the framework for the prices (“tariffs”) that IPL is allowed to charge customers for electric services. Since tariffs are approved by the regulator, the price that IPL has the right to bill corresponds directly with the value to the customer of IPL’s performance completed in each period. Therefore, revenue under these contracts is recognized using an output method measured by the MWhs delivered each month at the approved tariff. Customer payments are typically due on a monthly basis, though see Note 2, " Regulatory Matters - IURC COVID-19 Orders " for a discussion of the orders requiring expanded payment arrangements for customers. Wholesale revenues - Power produced at the generation stations in excess of our retail load is sold into the MISO market. Such sales are made at either the day-ahead or real-time hourly market price, and these sales are classified as wholesale revenues. We sell to and purchase power from MISO, and such sales and purchases are settled and accounted for on a net hourly basis. In the MISO market, wholesale revenue is recorded at the spot price based on the quantities of MWh delivered in each hour during each month. As a member of MISO, we are obligated to declare the availability of our energy production into the wholesale energy market, but we are not obligated to commit our previously declared availability. As such, contract terms end as the energy for each day is delivered to the market in the case of the day-ahead market and for each hour in the case of the real-time market. Miscellaneous revenues - Miscellaneous revenues are mainly comprised of MISO transmission revenues. MISO transmission revenues are earned when IPL’s power lines are used in transmission of energy by power producers other than IPL. As IPL owns and operates transmission lines in central and southern Indiana, demand charges collected from network customers by MISO are allocated to the appropriate transmission owners (including IPL) and recognized as transmission revenues. Capacity revenues are also included in miscellaneous revenues, but these were not material for the period presented. Transmission revenues have a single performance obligation, as transmission services represent a distinct service. Additionally, as the performance obligation is satisfied over time and the same method is used to measure progress, the performance obligation meets the criteria to be considered a series. The price that the transmission operator has the right to bill corresponds directly with the value to the customer of IPL’s performance completed in each period as the price paid is the transmission operator's allocation of the tariff rate (as approved by the regulator) charged to network participants. IPL’s revenue from contracts with customers was $1,326.6 million , $1,455.3 million and $1,440.7 million for the years ended December 31, 2020 , 2019 and 2018, respectively. The following table presents IPL's revenue from contracts with customers and other revenue (in thousands): For the Years Ended December 31, 2020 2019 2018 Retail Revenues Retail revenue from contracts with customers: Residential $ 566,668 $ 589,719 $ 588,031 Small commercial and industrial 194,904 215,878 217,896 Large commercial and industrial 484,230 548,551 565,720 Public lighting 9,115 7,249 9,797 Other (1) 14,402 14,136 10,427 Total retail revenue from contracts with customers 1,269,319 1,375,533 1,391,871 Alternative revenue programs 24,781 23,841 4,594 Wholesale Revenues Wholesale revenues from contracts with customers 46,482 68,474 38,789 Miscellaneous Revenues Transmission and other revenue from contracts with customers 10,794 11,335 10,057 Other miscellaneous revenues (2) 1,609 2,460 5,194 Total Revenues $ 1,352,985 $ 1,481,643 $ 1,450,505 (1) Other retail revenue from contracts with customers includes miscellaneous charges to customers (2) Other miscellaneous revenue includes lease and other miscellaneous revenues not accounted for under ASC 606 The balances of receivables from contracts with customers are $163.8 million and $155.0 million as of December 31, 2020 and December 31, 2019, respectively. Payment terms for all receivables from contracts with customers typically do not extend beyond 30 days, though see Note 2, "Regulatory Matters - IURC COVID-19 Order" for a discussion of orders requiring expanded payment arrangements for customers. IPL has elected to apply the optional disclosure exemptions under ASC 606. Therefore, IPL has not included disclosure pertaining to revenue expected to be recognized in any future year related to remaining performance obligations, as we exclude contracts with an original length of one year or less, contracts for which we recognize revenue based on the amount we have the right to invoice for services performed, and contracts with variable consideration allocated entirely to a wholly unsatisfied performance obligation when the consideration relates specifically to our efforts to satisfy the performance obligation and depicts the amount to which IPL expects to be entitled. Contract Balances — The timing of revenue recognition, billings, and cash collections results in accounts receivable and contract liabilities. The contract liabilities from contracts with customers were $0.5 million as of December 31, 2020. During the year ended December 31, 2020, we recognized revenue of $1.3 million related to this contract liability balance, respectively. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Future Minimum Lease Receipts | The following table shows the future minimum lease receipts through 2025 and thereafter (in thousands): Operating Leases 2021 $ 886 2022 906 2023 906 2024 786 2025 544 Thereafter 2,074 Total $ 6,102 |
Overview and Summary of Signi_4
Overview and Summary of Significant Accounting Policies (Details) $ in Thousands | Feb. 13, 2023 | Dec. 06, 2021 | Oct. 31, 2018USD ($) | Dec. 31, 2020USD ($)itemcustomergenerating_stationmiMW | Dec. 31, 2019USD ($)segmentMW | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Significant Accounting Policies [Line Items] | |||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (43,420) | $ (19,750) | $ 0 | $ 0 | |||
Other Comprehensive Income (Loss), Net of Tax | (23,670) | (19,750) | 0 | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | (27,779) | (19,750) | 0 | ||||
Public Utilities, Approved Rate Increase (Decrease), Amount | $ 43,900 | ||||||
Public Utilities, Inventory | 36,953 | 26,907 | |||||
Receivables from Customers | 91,335 | 90,747 | |||||
Cash and Cash Equivalents, at Carrying Value | 20,502 | 48,152 | |||||
Capitalized Computer Software, Gross | 144,500 | 139,600 | |||||
Service cost | 8,272 | 7,412 | 8,450 | ||||
Interest cost | $ 22,151 | 27,343 | $ 25,220 | ||||
Ownership interest in IPALCO by AES U.S. Investments (percent) | 82.35% | ||||||
Ownership interest in IPALCO by CDPQ (percent) | 17.65% | ||||||
Number of customers | customer | 512,000 | ||||||
Distance of Furthest Customer from Indianapolis | mi | 40 | ||||||
Number of generating stations | generating_station | 4 | ||||||
Electric generation capability for winter, megawatts | MW | 3,705 | ||||||
Electric generation capability for summer, megawatts | MW | 3,560 | ||||||
Total other non-current assets | $ 46,716 | 22,082 | |||||
Unbilled energy revenues | 72,334 | 65,822 | |||||
Provision for doubtful accounts | 5,861 | ||||||
Loss contingencies accrued | $ 15,400 | $ 4,500 | |||||
Number of suppliers | item | 2 | ||||||
Capitalized amount, rate | 6.90% | 6.90% | 6.40% | ||||
Depreciation rate | 3.70% | 3.70% | 4.20% | ||||
Depreciation expense | $ 232,800 | $ 228,200 | $ 235,200 | ||||
Utility plant assets | 4,100,000 | ||||||
Number of segments | segment | 2 | ||||||
Capitalized Computer Software, Accumulated Amortization | 85,300 | $ 74,700 | |||||
Capitalized Computer Software, Amortization | 10,600 | 7,500 | 5,500 | ||||
Capitalized software, estimated amortization expense in year two | 59,000 | ||||||
Capitalized Software, estimated amortization expense for the next 12 months | 11,800 | ||||||
capitalized software, estimated amortization expense for year two | 11,800 | ||||||
Capitalized software, estimated amortization expense for year three | 11,800 | ||||||
Capitalized software, estimated amortization expense year four | 11,800 | ||||||
Restricted Cash and Cash Equivalents | 6,120 | 400 | |||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 26,622 | 48,552 | 33,599 | 30,681 | |||
Accounts Receivable, Related Parties | 490 | 2,717 | |||||
Other Receivables | 4,189 | 2,725 | |||||
Accounts Receivable, Allowance for Credit Loss | (3,155) | (921) | |||||
Receivables, Net, Current | 165,193 | 161,090 | |||||
Materials and Supplies, Average Cost | 58,553 | 56,662 | |||||
Inventory, Net | 95,506 | 83,569 | |||||
capitalized software, estimated amortization expense year five | 11,800 | ||||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (27,779) | (19,750) | 0 | ||||
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent | 4,109 | 0 | 0 | ||||
Entity Information [Line Items] | |||||||
Accounts receivable and unbilled revenue, allowance for doubtful accounts | 3,155 | 921 | |||||
Provision for doubtful accounts | 5,861 | ||||||
Accounts Receivable, Allowance for Credit Loss, Writeoff | $ (5,473) | ||||||
Allowance for Credit Losses | The following table is a rollforward of our allowance for credit losses related to the accounts receivable balances for the year ended December 31, 2020 (in Thousands): Beginning Allowance Balance at January 1, 2020 Current Period Provision Write-offs Charged Against Allowances Recoveries Collected Ending Allowance Balance at Allowance for credit losses $ 921 $ 5,861 $ (5,473) $ 1,846 $ 3,155 | ||||||
Accounts Receivable, Allowance for Credit Loss, Recovery | $ 1,846 | ||||||
Income Tax Expense (Benefit) | (28,592) | (35,528) | (13,449) | ||||
Regulatory assets | 392,801 | 355,614 | |||||
Provision for Expected Credit Losses | 4,800 | 4,300 | 5,900 | ||||
Prepaid Implementation Costs for Software as a Service | |||||||
Significant Accounting Policies [Line Items] | |||||||
Total other non-current assets | $ 8,800 | ||||||
Harding Street [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Amount of New Operation for Battery Storage Unit, megawatts | MW | 20 | ||||||
Labor Force Concentration Risk [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Concentration risk percentage | 69.00% | ||||||
Parent Company [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (43,420) | (19,750) | 0 | 0 | |||
Other Comprehensive Income (Loss), Net of Tax | (23,670) | (19,750) | 0 | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | (27,779) | (19,750) | 0 | ||||
Cash and Cash Equivalents, at Carrying Value | 302 | 3,709 | |||||
Total other non-current assets | 1,444,222 | 1,436,748 | |||||
Restricted Cash and Cash Equivalents | 6,115 | 0 | |||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 6,417 | 3,709 | 4,409 | 16,383 | |||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (27,779) | (19,750) | 0 | ||||
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent | 4,109 | 0 | 0 | ||||
Entity Information [Line Items] | |||||||
Income Tax Expense (Benefit) | 11,278 | 7,909 | 8,143 | ||||
Indianapolis Power And Light Company | |||||||
Significant Accounting Policies [Line Items] | |||||||
Public Utilities, Approved Rate Increase (Decrease), Amount | 43,900 | ||||||
Public Utilities, Inventory | 36,953 | 26,907 | |||||
Receivables from Customers | 91,335 | 90,747 | |||||
Cash and Cash Equivalents, at Carrying Value | 17,946 | 42,189 | |||||
Capitalized Computer Software, Gross | 144,500 | 139,600 | |||||
Service cost | 8,272 | 7,412 | 8,450 | ||||
Interest cost | $ 22,151 | 27,343 | $ 25,220 | ||||
Number of customers | customer | 512,000 | ||||||
Distance of Furthest Customer from Indianapolis | mi | 40 | ||||||
Electric generation capability for winter, megawatts | MW | 3,705 | ||||||
Electric generation capability for summer, megawatts | MW | 3,560 | ||||||
Total other non-current assets | $ 43,386 | 18,045 | |||||
Unbilled energy revenues | 72,334 | 65,822 | |||||
Provision for doubtful accounts | 5,861 | ||||||
Loss contingencies accrued | $ 15,400 | $ 4,500 | |||||
Number of suppliers | item | 2 | ||||||
Capitalized amount, rate | 6.90% | 6.90% | 6.40% | ||||
Depreciation rate | 3.70% | 3.70% | 4.20% | ||||
Depreciation expense | $ 232,800 | $ 228,200 | $ 235,200 | ||||
Utility plant assets | 4,100,000 | ||||||
Capitalized Computer Software, Accumulated Amortization | 85,300 | 74,700 | |||||
Capitalized Computer Software, Amortization | 10,600 | 7,500 | 5,500 | ||||
Capitalized software, estimated amortization expense in year two | 59,000 | ||||||
Capitalized Software, estimated amortization expense for the next 12 months | 11,800 | ||||||
capitalized software, estimated amortization expense for year two | 11,800 | ||||||
Capitalized software, estimated amortization expense for year three | 11,800 | ||||||
Restricted Cash and Cash Equivalents | 5 | 400 | |||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 17,951 | 42,589 | 27,234 | $ 12,342 | |||
Accounts Receivable, Related Parties | 734 | 2,992 | |||||
Other Receivables | 4,187 | 2,725 | |||||
Accounts Receivable, Allowance for Credit Loss | (3,155) | (921) | |||||
Receivables, Net, Current | 165,435 | 161,365 | |||||
Materials and Supplies, Average Cost | 58,553 | 56,662 | |||||
Inventory, Net | 95,506 | 83,569 | |||||
capitalized software, estimated amortization expense year five | 11,800 | ||||||
Entity Information [Line Items] | |||||||
Accounts receivable and unbilled revenue, allowance for doubtful accounts | 3,155 | 921 | |||||
Provision for doubtful accounts | 5,861 | ||||||
Accounts Receivable, Allowance for Credit Loss, Writeoff | $ (5,473) | ||||||
Allowance for Credit Losses | The following table is a rollforward of our allowance for credit losses related to the accounts receivable balances for the year ended December 31, 2020 (in Thousands): Beginning Allowance Balance at January 1, 2020 Current Period Provision Write-offs Charged Against Allowances Recoveries Collected Ending Allowance Balance at Allowance for credit losses $ 921 $ 5,861 $ (5,473) $ 1,846 $ 3,155 | ||||||
Accounts Receivable, Allowance for Credit Loss, Recovery | $ 1,846 | ||||||
Income Tax Expense (Benefit) | (40,134) | (43,430) | (21,590) | ||||
Regulatory assets | 392,801 | 355,614 | |||||
Probable Petersburg Unit 1 Retirement Reclassification | 74,500 | ||||||
Provision for Expected Credit Losses | 4,800 | $ 4,300 | 5,900 | ||||
Indianapolis Power And Light Company | Prepaid Implementation Costs for Software as a Service | |||||||
Significant Accounting Policies [Line Items] | |||||||
Total other non-current assets | $ 8,800 | ||||||
Indianapolis Power And Light Company | Harding Street [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Amount of New Operation for Battery Storage Unit, megawatts | MW | 20 | ||||||
Indianapolis Power And Light Company | Labor Force Concentration Risk [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Concentration risk percentage | 69.00% | ||||||
AES U.S. Holdings, LLC [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Ownership Interest in Parent Company, Percent | 85.00% | ||||||
CDPQ [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Ownership Interest in Parent Company, Percent | 15.00% | ||||||
Subsequent Event [Member] | Indianapolis Power And Light Company | |||||||
Significant Accounting Policies [Line Items] | |||||||
Capitalized software, estimated amortization expense year four | $ 11,800 | ||||||
Subsequent Event [Member] | Physical Unit [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Collective bargaining agreement expiration date | Dec. 6, 2021 | ||||||
Subsequent Event [Member] | Physical Unit [Member] | Indianapolis Power And Light Company | |||||||
Significant Accounting Policies [Line Items] | |||||||
Collective bargaining agreement expiration date | Dec. 6, 2021 | ||||||
Subsequent Event [Member] | Clerical-Technical Unit [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Collective bargaining agreement expiration date | Feb. 13, 2023 | ||||||
Subsequent Event [Member] | Clerical-Technical Unit [Member] | Indianapolis Power And Light Company | |||||||
Significant Accounting Policies [Line Items] | |||||||
Collective bargaining agreement expiration date | Feb. 13, 2023 | ||||||
Increase to Annual Depreciation Rate [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Public Utilities, Approved Rate Increase (Decrease), Amount | 28,700 | ||||||
Increase to Annual Depreciation Rate [Member] | Indianapolis Power And Light Company | |||||||
Significant Accounting Policies [Line Items] | |||||||
Public Utilities, Approved Rate Increase (Decrease), Amount | $ 28,700 | ||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | |||||||
Entity Information [Line Items] | |||||||
Interest and Debt Expense | (5,422) | $ 0 | 0 | ||||
Income Tax Expense (Benefit) | 1,313 | 0 | 0 | ||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ (4,109) | $ 0 | $ 0 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Public Utility, Property, Plant and Equipment [Line Items] | ||
Revisions to cash flow and timing estimates | $ 1,120 | $ 78,153 |
Direct first mortgage lien | 1,803,800 | |
Non-contractually required removal costs of utility plant in service | 818,000 | 788,300 |
Contractually required removal costs of utility plant in service | 195,200 | 204,200 |
Regulatory assets | 392,801 | 355,614 |
Regulatory assets | 392,801 | 355,614 |
Entity Information [Line Items] | ||
Regulatory assets | 392,801 | 355,614 |
Petersburg Unit 1 retirement | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Regulatory assets | 74,545 | 0 |
Regulatory assets | 74,545 | 0 |
Entity Information [Line Items] | ||
Regulatory assets | 74,545 | 0 |
Indianapolis Power And Light Company | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Revisions to cash flow and timing estimates | 1,120 | 78,153 |
Direct first mortgage lien | 1,803,800 | |
Non-contractually required removal costs of utility plant in service | 818,000 | 788,300 |
Contractually required removal costs of utility plant in service | 195,200 | 204,200 |
Regulatory assets | 392,801 | 355,614 |
Regulatory assets | 392,801 | 355,614 |
Entity Information [Line Items] | ||
Regulatory assets | 392,801 | 355,614 |
Indianapolis Power And Light Company | Petersburg Unit 1 retirement | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Regulatory assets | 74,545 | 0 |
Regulatory assets | 74,545 | 0 |
Entity Information [Line Items] | ||
Regulatory assets | $ 74,545 | $ 0 |
Property, Plant and Equipment_3
Property, Plant and Equipment (Schedule Of Original Cost Of Utility Plant In Service) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Entity Information [Line Items] | ||
Production | $ 4,191,223 | $ 4,154,919 |
Transmission | 408,380 | 398,903 |
Distribution | 1,671,861 | 1,594,208 |
General plant | 258,931 | 250,582 |
Total utility plant in service | 6,530,395 | 6,398,612 |
Indianapolis Power And Light Company | ||
Entity Information [Line Items] | ||
Production | 4,191,223 | 4,154,919 |
Transmission | 408,380 | 398,903 |
Distribution | 1,671,861 | 1,594,208 |
General plant | 258,931 | 250,582 |
Total utility plant in service | $ 6,530,395 | $ 6,398,612 |
Property, Plant and Equipment A
Property, Plant and Equipment ARO (Reconciliation of Asset Retirement Obligation Liability) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Balance as of January 1 | $ 204,219 | $ 129,451 |
Liabilities settled | (18,302) | (9,891) |
Revisions to cash flow and timing estimates | 1,120 | 78,153 |
Accretion expense | 8,199 | 6,506 |
Balance as of December 31 | 195,236 | 204,219 |
Indianapolis Power And Light Company | ||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Balance as of January 1 | 204,219 | 129,451 |
Liabilities settled | 18,302 | 9,891 |
Revisions to cash flow and timing estimates | 1,120 | 78,153 |
Accretion expense | 8,199 | 6,506 |
Balance as of December 31 | $ 195,236 | $ 204,219 |
Fair Value (Narrative) (Details
Fair Value (Narrative) (Details) MWh in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)MWh | Dec. 31, 2019USD ($) | |
Entity Information [Line Items] | ||
Revisions to cash flow and timing estimates | $ 1,120 | $ 78,153 |
Debt Issuance Costs, Net | 26,000 | 20,700 |
Unamortized debt discount | 6,600 | 6,500 |
Asset retirement obligations | 195,236 | 204,219 |
Regulatory assets | 392,801 | 355,614 |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | ||
Entity Information [Line Items] | ||
Derivative, Notional Amount, Purchase (Sales), Net | 400,000 | |
Purchase of Derivative Instruments Interest Rate Swap | 400,000 | |
Sale of Derivative Instruments Interest Rate Swap | $ 0 | |
FTR [Member] | Not Designated as Hedging Instrument [Member] | ||
Entity Information [Line Items] | ||
Sale of Units Derivative Instruments Financial Transmission Rights | MWh | 0 | |
Petersburg Unit 1 retirement | ||
Entity Information [Line Items] | ||
Regulatory assets | $ 74,545 | 0 |
Indianapolis Power And Light Company | ||
Entity Information [Line Items] | ||
Revisions to cash flow and timing estimates | 1,120 | 78,153 |
Debt Issuance Costs, Net | 17,400 | 16,700 |
Unamortized debt discount | 6,006 | 6,156 |
Asset retirement obligations | 195,236 | 204,219 |
Regulatory assets | $ 392,801 | 355,614 |
Indianapolis Power And Light Company | FTR [Member] | Not Designated as Hedging Instrument [Member] | ||
Entity Information [Line Items] | ||
Sale of Units Derivative Instruments Financial Transmission Rights | MWh | 0 | |
Indianapolis Power And Light Company | Petersburg Unit 1 retirement | ||
Entity Information [Line Items] | ||
Regulatory assets | $ 74,545 | $ 0 |
Fair Value (Summary Of Fair Val
Fair Value (Summary Of Fair Value Assets And Liabilities Measured On A Recurring Basis, Level 3) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Entity Information [Line Items] | ||
Financial transmission rights | $ 543 | $ 864 |
Total financial assets measured at fair value | 3,768 | 3,743 |
Indianapolis Power And Light Company | ||
Entity Information [Line Items] | ||
Financial transmission rights | 543 | 864 |
Total financial assets measured at fair value | 543 | 864 |
Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | ||
Entity Information [Line Items] | ||
Financial transmission rights | 0 | 0 |
Total financial assets measured at fair value | 16 | 25 |
Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | Indianapolis Power And Light Company | ||
Entity Information [Line Items] | ||
Financial transmission rights | 0 | 0 |
Total financial assets measured at fair value | 0 | 0 |
Significant Observable Inputs (Level 2) [Member] | ||
Entity Information [Line Items] | ||
Financial transmission rights | 0 | 0 |
Total financial assets measured at fair value | 3,209 | 2,854 |
Significant Observable Inputs (Level 2) [Member] | Indianapolis Power And Light Company | ||
Entity Information [Line Items] | ||
Financial transmission rights | 0 | 0 |
Total financial assets measured at fair value | 0 | 0 |
Unobservable Inputs (Level 3) [Member] | ||
Entity Information [Line Items] | ||
Financial transmission rights | 543 | 864 |
Total financial assets measured at fair value | 543 | 864 |
Unobservable Inputs (Level 3) [Member] | Indianapolis Power And Light Company | ||
Entity Information [Line Items] | ||
Financial transmission rights | 543 | 864 |
Total financial assets measured at fair value | $ 543 | $ 864 |
Fair Value (Reconciliation Of F
Fair Value (Reconciliation Of Financial Instruments Classified As Level 3) (Details) - Derivative Financial Instruments, net Liabilities [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | $ 864 | $ 3,046 |
Unrealized gain recognized in earnings | 53 | |
Issuances | 1,889 | 2,846 |
Settlements | (2,210) | (5,081) |
Ending balance | $ 543 | $ 864 |
Fair Value (Schedule Of Face An
Fair Value (Schedule Of Face And Fair Value Of Debt) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Debt Instrument, Unamortized Discount | $ 6,600 | $ 6,500 |
Face Value | 2,758,800 | 2,678,800 |
Fair Value | 3,370,588 | 3,031,140 |
Indianapolis Power And Light Company | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Unamortized Discount | 6,006 | 6,156 |
Face Value | 1,878,800 | 1,803,800 |
Fair Value | 2,377,973 | 2,139,758 |
Fixed Rate [Member] | ||
Debt Instrument [Line Items] | ||
Face Value | 2,683,800 | 2,523,800 |
Fair Value | 3,295,588 | 2,876,140 |
Fixed Rate [Member] | Indianapolis Power And Light Company | ||
Debt Instrument [Line Items] | ||
Face Value | 1,803,800 | 1,713,800 |
Fair Value | 2,302,973 | 2,049,758 |
Variable Rate [Member] | ||
Debt Instrument [Line Items] | ||
Face Value | 75,000 | 155,000 |
Fair Value | 75,000 | 155,000 |
Variable Rate [Member] | Indianapolis Power And Light Company | ||
Debt Instrument [Line Items] | ||
Face Value | 75,000 | 90,000 |
Fair Value | $ 75,000 | $ 90,000 |
Regulatory Matters (Narrative)
Regulatory Matters (Narrative) (Details) $ in Thousands | Oct. 31, 2018USD ($) | Aug. 29, 2018USD ($) | Mar. 31, 2016USD ($) | Mar. 31, 2020MW | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($)MW | Dec. 31, 2018USD ($) | Dec. 31, 2017 | Jul. 24, 2019USD ($) |
Regulatory Assets And Liabilities [Line Items] | |||||||||
Regulatory liabilities, current | $ 30,036 | $ 52,654 | |||||||
Regulatory assets, current | 45,430 | 37,398 | |||||||
Regulatory assets | $ 392,801 | $ 355,614 | |||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% | 21.00% | ||||||
Equipment recovery approved amount | $ 22,500 | ||||||||
Revenue requirement to be included in rate | 31,200 | ||||||||
Public Utlities, Approved Shareholder Incentives | $ 6,000 | 7,500 | $ 3,800 | ||||||
Regulatory Assets | 438,231 | 393,012 | |||||||
Regulatory assets | 45,430 | $ 37,398 | |||||||
Public Utilities, Approved Rate Increase (Decrease), Amount | $ 43,900 | ||||||||
Public Utilities, Approved Rate Increase (Decrease), Percentage | 3.20% | ||||||||
Wholesale Sales Margins, Percent Shared with Customers | 50.00% | ||||||||
Benchmark for Wholesale Sales Margin | $ 6,300 | ||||||||
TDSIC Eligible Cost Recovery Through Periodic Rate Adjustment Mechanism Plan, Percent | 80.00% | ||||||||
TDSIC Planned Recoverable Costs Deferred For Future Recovery, Percent | 20.00% | ||||||||
Periodic Rate Adjustment Mechanism Cap, Percent | 2.00% | ||||||||
TDSIC Plan Improvement Costs | $ 1,200,000 | ||||||||
Preferred Resource Portfolio Coal-Fired Generation Retirement MW by 2023 | 630 | ||||||||
Inventory Write-down | $ 6,200 | ||||||||
Reduction to Revenue | 10,000 | ||||||||
Regulatory Liability, Noncurrent | 839,360 | 846,430 | |||||||
Tax rate before change due to Tax Cuts and Jobs Act of 2017 | 35.00% | ||||||||
Tax rate after Tax Cuts and Jobs Act of 2017 | 21.00% | ||||||||
COVID-19 related uncollectible and incremental bad debt expense | 6,400 | ||||||||
Regulatory Liabilities | 869,396 | 899,084 | |||||||
Regulatory liabilities | 839,360 | 846,430 | |||||||
Overcollection and other credits passed to customers through rate riders [Member] | |||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||
Regulatory liabilities, current | 29,493 | 51,790 | |||||||
Unamortized Investment Tax Credit [Member] | |||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||
Regulatory Liability, Noncurrent | 0 | 3,337 | |||||||
Regulatory liabilities | 0 | 3,337 | |||||||
Financial Transmission Rights [Member] | |||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||
Regulatory liabilities, current | 543 | 864 | |||||||
Asset Retirement Obligation Costs [Member] | |||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||
Regulatory Liability, Noncurrent | 723,897 | 719,680 | |||||||
Regulatory liabilities | 723,897 | 719,680 | |||||||
Other Regulatory Assets (Liabilities) [Member] | |||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||
Regulatory Liability, Noncurrent | 2,506 | 1,257 | |||||||
Regulatory liabilities | 2,506 | 1,257 | |||||||
Non-current | |||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||
Approved Rate Order Benefits to Customers | 0 | 4,700 | |||||||
Current | |||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||
Approved Rate Order Benefits to Customers | 4,700 | 25,100 | |||||||
Regulatory Liability Attributable to the Cumulative Deficiencies Calculation | 7,700 | ||||||||
Subsidiaries [Member] | |||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||
Regulatory liabilities, current | 30,036 | 52,654 | |||||||
Regulatory assets, current | 45,430 | 37,398 | |||||||
Regulatory assets | $ 392,801 | $ 355,614 | |||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% | 21.00% | ||||||
Equipment recovery approved amount | $ 22,500 | ||||||||
Revenue requirement to be included in rate | 31,200 | ||||||||
Public Utlities, Approved Shareholder Incentives | $ 6,000 | 7,500 | $ 3,800 | ||||||
Regulatory Assets | 438,231 | 393,012 | |||||||
Regulatory assets | 45,430 | $ 37,398 | |||||||
Public Utilities, Approved Rate Increase (Decrease), Amount | $ 43,900 | ||||||||
Public Utilities, Approved Rate Increase (Decrease), Percentage | 3.20% | ||||||||
Wholesale Sales Margins, Percent Shared with Customers | 50.00% | ||||||||
Benchmark for Wholesale Sales Margin | $ 6,300 | ||||||||
TDSIC Eligible Cost Recovery Through Periodic Rate Adjustment Mechanism Plan, Percent | 80.00% | ||||||||
TDSIC Planned Recoverable Costs Deferred For Future Recovery, Percent | 20.00% | ||||||||
Periodic Rate Adjustment Mechanism Cap, Percent | 2.00% | ||||||||
TDSIC Plan Improvement Costs | $ 1,200,000 | ||||||||
Preferred Resource Portfolio Coal-Fired Generation Retirement MW by 2023 | 630 | ||||||||
Inventory Write-down | $ 6,200 | ||||||||
Reduction to Revenue | 10,000 | ||||||||
Regulatory Liability, Noncurrent | 839,360 | 846,430 | |||||||
Tax rate before change due to Tax Cuts and Jobs Act of 2017 | 35.00% | ||||||||
Tax rate after Tax Cuts and Jobs Act of 2017 | 21.00% | ||||||||
COVID-19 related uncollectible and incremental bad debt expense | 6,400 | ||||||||
Regulatory Liabilities | 869,396 | 899,084 | |||||||
Probable Petersburg Unit 1 Retirement Reclassification | 74,500 | ||||||||
Regulatory liabilities | 839,360 | 846,430 | |||||||
Subsidiaries [Member] | Overcollection and other credits passed to customers through rate riders [Member] | |||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||
Regulatory liabilities, current | 29,493 | 51,790 | |||||||
Subsidiaries [Member] | Unamortized Investment Tax Credit [Member] | |||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||
Regulatory Liability, Noncurrent | 0 | 3,337 | |||||||
Regulatory liabilities | 0 | 3,337 | |||||||
Subsidiaries [Member] | Financial Transmission Rights [Member] | |||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||
Regulatory liabilities, current | 543 | 864 | |||||||
Subsidiaries [Member] | Asset Retirement Obligation Costs [Member] | |||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||
Regulatory Liability, Noncurrent | 723,897 | 719,680 | |||||||
Regulatory liabilities | 723,897 | 719,680 | |||||||
Subsidiaries [Member] | Deferred Income Tax Charge [Member] | |||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||
Regulatory Liability, Noncurrent | 113,000 | 122,156 | |||||||
Regulatory liabilities | 113,000 | 122,156 | |||||||
Subsidiaries [Member] | Other Regulatory Assets (Liabilities) [Member] | |||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||
Regulatory Liability, Noncurrent | 2,506 | 1,257 | |||||||
Regulatory liabilities | 2,506 | 1,257 | |||||||
Subsidiaries [Member] | Non-current | |||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||
Approved Rate Order Benefits to Customers | 0 | 4,700 | |||||||
Subsidiaries [Member] | Current | |||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||
Approved Rate Order Benefits to Customers | 4,700 | $ 25,100 | |||||||
Regulatory Liability Attributable to the Cumulative Deficiencies Calculation | $ 7,700 | ||||||||
Indiana [Member] | Subsidiaries [Member] | |||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||
Amount of electricity required to be purchased under purchase power agreement | MW | 100 | ||||||||
Minnesota [Member] | Subsidiaries [Member] | |||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||
Amount of electricity required to be purchased under purchase power agreement | MW | 200 | ||||||||
Solar Generated Electricity [Member] | Subsidiaries [Member] | |||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||
Amount of electricity required to be purchased under purchase power agreement | MW | 95.9 | ||||||||
Solar Generated Electricity [Member] | Subsequent Event [Member] | Subsidiaries [Member] | |||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||
Amount of electricity required to be purchased under purchase power agreement | MW | 96.4 | ||||||||
Minimum [Member] | |||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||
Regulatory Assets Amortization Period | 1 year | ||||||||
Environmental Costs Amortization Period | 3 years | ||||||||
TDSIC Costs Amortization Period | 3 years | ||||||||
Minimum [Member] | Subsidiaries [Member] | |||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||
Regulatory Assets Amortization Period | 1 year | ||||||||
Environmental Costs Amortization Period | 3 years | ||||||||
TDSIC Costs Amortization Period | 3 years | ||||||||
Maximum [Member] | |||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||
Regulatory Assets Amortization Period | 45 years | ||||||||
Environmental Costs Amortization Period | 45 years | ||||||||
TDSIC Costs Amortization Period | 31 years | ||||||||
Maximum [Member] | Subsidiaries [Member] | |||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||
Regulatory Assets Amortization Period | 45 years | ||||||||
Environmental Costs Amortization Period | 45 years | ||||||||
TDSIC Costs Amortization Period | 31 years | ||||||||
Deferred Income Tax Charge [Member] | |||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||
Regulatory Liability, Noncurrent | $ 112,957 | $ 122,156 | |||||||
Regulatory liabilities | 112,957 | 122,156 | |||||||
Deferred Income Tax Charge [Member] | Subsidiaries [Member] | |||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||
Regulatory Liability, Noncurrent | 112,957 | ||||||||
Regulatory liabilities | 112,957 | ||||||||
Undercollections of rate riders [Member] | |||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||
Regulatory assets, current | 31,569 | 22,216 | |||||||
Regulatory assets | 31,569 | 22,216 | |||||||
Undercollections of rate riders [Member] | Subsidiaries [Member] | |||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||
Regulatory assets, current | 31,569 | 22,216 | |||||||
Regulatory assets | 31,569 | 22,216 | |||||||
Amounts being recovered through base rates [Member] | |||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||
Regulatory assets, current | 13,861 | 15,182 | |||||||
Regulatory assets | 13,861 | 15,182 | |||||||
Amounts being recovered through base rates [Member] | Subsidiaries [Member] | |||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||
Regulatory assets, current | 13,861 | 15,182 | |||||||
Regulatory assets | 13,861 | 15,182 | |||||||
Pension Costs [Member] | |||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||
Regulatory assets | 149,374 | 176,646 | |||||||
Pension Costs [Member] | Subsidiaries [Member] | |||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||
Regulatory assets | 149,374 | 176,646 | |||||||
Deferred Project Costs [Member] | |||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||
Regulatory assets | 74,660 | ||||||||
Deferred Project Costs [Member] | Subsidiaries [Member] | |||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||
Regulatory assets | 74,660 | ||||||||
Unamortized Carrying Charges And Certain Other Costs [Member] | |||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||
Regulatory assets | 5,975 | 7,030 | |||||||
Unamortized Carrying Charges And Certain Other Costs [Member] | Subsidiaries [Member] | |||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||
Regulatory assets | 5,975 | 7,030 | |||||||
Loss on Reacquired Debt [Member] | |||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||
Regulatory assets | 17,018 | 18,330 | |||||||
Loss on Reacquired Debt [Member] | Subsidiaries [Member] | |||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||
Regulatory assets | 17,018 | 18,330 | |||||||
Environmental Restoration Costs [Member] | |||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||
Regulatory assets | 74,637 | 78,021 | |||||||
Environmental Restoration Costs [Member] | Subsidiaries [Member] | |||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||
Regulatory assets | 74,637 | 78,021 | |||||||
Other Miscellaneous [Member] | |||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||
Regulatory assets | 847 | 927 | |||||||
Other Miscellaneous [Member] | Subsidiaries [Member] | |||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||
Regulatory assets | 847 | 927 | |||||||
Deferred MISO Non-fuel Costs [Member] | |||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||
Regulatory assets | 61,267 | ||||||||
Deferred MISO Non-fuel Costs [Member] | Subsidiaries [Member] | |||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||
Regulatory assets | 61,267 | ||||||||
COVID-19 | |||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||
Regulatory assets | 6,391 | 0 | |||||||
COVID-19 | Subsidiaries [Member] | |||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||
Regulatory assets | 6,391 | 0 | |||||||
TDSIC projects | |||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||
Regulatory assets | 2,747 | 0 | |||||||
TDSIC projects | Subsidiaries [Member] | |||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||
Regulatory assets | 2,747 | 0 | |||||||
Petersburg Unit 1 retirement | |||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||
Regulatory assets | 74,545 | 0 | |||||||
Petersburg Unit 1 retirement | Subsidiaries [Member] | |||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||
Regulatory assets | $ 74,545 | $ 0 | |||||||
Rate Order total benefits to customers [Member] | |||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||
Approved Rate Order Benefits to Customers | $ 50,000 | ||||||||
Rate Order total benefits to customers [Member] | Subsidiaries [Member] | |||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||
Approved Rate Order Benefits to Customers | 50,000 | ||||||||
Benchmark for annual wholesale margins [Member] | |||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||
Approved Rate Order Benefits to Customers | 16,300 | ||||||||
Benchmark for annual wholesale margins [Member] | Subsidiaries [Member] | |||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||
Approved Rate Order Benefits to Customers | 16,300 | ||||||||
Benchmark for annual capacity sales [Member] | |||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||
Approved Rate Order Benefits to Customers | 11,300 | ||||||||
Benchmark for annual capacity sales [Member] | Subsidiaries [Member] | |||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||
Approved Rate Order Benefits to Customers | 11,300 | ||||||||
Increase to Annual Depreciation Rate [Member] | |||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||
Public Utilities, Approved Rate Increase (Decrease), Amount | 28,700 | ||||||||
Increase to Annual Depreciation Rate [Member] | Subsidiaries [Member] | |||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||
Public Utilities, Approved Rate Increase (Decrease), Amount | $ 28,700 | ||||||||
Federal Tax Act impact Phase 1 [Member] | |||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||
ECCRA rate adjustment mechanism | $ 9,500 | ||||||||
Federal Tax Act impact Phase 1 [Member] | Subsidiaries [Member] | |||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||
ECCRA rate adjustment mechanism | 9,500 | ||||||||
Federal Tax Act Impact Phase II [Member] | |||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||
ECCRA rate adjustment mechanism | 14,300 | ||||||||
Federal Tax Act Impact Phase II [Member] | Subsidiaries [Member] | |||||||||
Regulatory Assets And Liabilities [Line Items] | |||||||||
ECCRA rate adjustment mechanism | $ 14,300 |
Regulatory Matters (Schedule Of
Regulatory Matters (Schedule Of Regulatory Assets And Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets, current | $ 45,430 | $ 37,398 |
Regulatory assets, noncurrent | 392,801 | 355,614 |
Total regulatory assets | 438,231 | 393,012 |
Regulatory liabilities, current | 30,036 | 52,654 |
Regulatory Liability, Noncurrent | 839,360 | 846,430 |
Total regulatory liabilities | 869,396 | 899,084 |
Overcollection and other credits passed to customers through rate riders [Member] | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory liabilities, current | 29,493 | 51,790 |
Financial Transmission Rights [Member] | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory liabilities, current | 543 | 864 |
Asset Retirement Obligation Costs [Member] | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory Liability, Noncurrent | 723,897 | 719,680 |
Unamortized Investment Tax Credit [Member] | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory Liability, Noncurrent | 0 | 3,337 |
Other Regulatory Assets (Liabilities) [Member] | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory Liability, Noncurrent | 2,506 | 1,257 |
Undercollections of rate riders [Member] | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets, current | 31,569 | 22,216 |
Amounts being recovered through base rates [Member] | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets, current | 13,861 | 15,182 |
Unrecognized Pension And Other Post Retirement Benefit Plan Costs [Member] | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets, noncurrent | 149,374 | 176,646 |
Deferred Income Tax Charge [Member] | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory Liability, Noncurrent | 112,957 | 122,156 |
Deferred MISO Non-fuel Costs [Member] | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets, noncurrent | 61,267 | |
Unamortized Petersburg Unit 4 Carrying Charges And Certain Other Costs [Member] | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets, noncurrent | 5,975 | 7,030 |
Unamortized Reacquisition Premium On Debt [Member] | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets, noncurrent | 17,018 | 18,330 |
Environmental Projects [Member] | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets, noncurrent | 74,637 | 78,021 |
Other Miscellaneous [Member] | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets, noncurrent | 847 | 927 |
Indianapolis Power And Light Company | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets, current | 45,430 | 37,398 |
Regulatory assets, noncurrent | 392,801 | 355,614 |
Total regulatory assets | 438,231 | 393,012 |
Regulatory liabilities, current | 30,036 | 52,654 |
Regulatory Liability, Noncurrent | 839,360 | 846,430 |
Total regulatory liabilities | 869,396 | 899,084 |
Indianapolis Power And Light Company | Overcollection and other credits passed to customers through rate riders [Member] | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory liabilities, current | 29,493 | 51,790 |
Indianapolis Power And Light Company | Financial Transmission Rights [Member] | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory liabilities, current | 543 | 864 |
Indianapolis Power And Light Company | Asset Retirement Obligation Costs [Member] | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory Liability, Noncurrent | 723,897 | 719,680 |
Indianapolis Power And Light Company | Deferred Income Tax Charge [Member] | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory Liability, Noncurrent | 113,000 | 122,156 |
Indianapolis Power And Light Company | Unamortized Investment Tax Credit [Member] | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory Liability, Noncurrent | 0 | 3,337 |
Indianapolis Power And Light Company | Other Regulatory Assets (Liabilities) [Member] | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory Liability, Noncurrent | 2,506 | 1,257 |
Indianapolis Power And Light Company | Undercollections of rate riders [Member] | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets, current | 31,569 | 22,216 |
Indianapolis Power And Light Company | Amounts being recovered through base rates [Member] | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets, current | 13,861 | 15,182 |
Indianapolis Power And Light Company | Unrecognized Pension And Other Post Retirement Benefit Plan Costs [Member] | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets, noncurrent | 149,374 | 176,646 |
Indianapolis Power And Light Company | Deferred Income Tax Charge [Member] | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory Liability, Noncurrent | 112,957 | |
Indianapolis Power And Light Company | Deferred MISO Non-fuel Costs [Member] | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets, noncurrent | 61,267 | |
Indianapolis Power And Light Company | Unamortized Petersburg Unit 4 Carrying Charges And Certain Other Costs [Member] | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets, noncurrent | 5,975 | 7,030 |
Indianapolis Power And Light Company | Unamortized Reacquisition Premium On Debt [Member] | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets, noncurrent | 17,018 | 18,330 |
Indianapolis Power And Light Company | Environmental Projects [Member] | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets, noncurrent | 74,637 | 78,021 |
Indianapolis Power And Light Company | Other Miscellaneous [Member] | ||
Regulatory Assets And Liabilities [Line Items] | ||
Regulatory assets, noncurrent | $ 847 | $ 927 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities (Details) MWh in Thousands | 12 Months Ended | ||||
Dec. 31, 2020USD ($)MWh | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Apr. 08, 2020USD ($) | Dec. 31, 2017USD ($) | |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | $ 8,876,000 | $ 6,810,000 | $ 0 | ||
Number of Interest Rate Swaps | 3 | ||||
Other Comprehensive Income (Loss), Net of Tax | $ (27,779,000) | (19,750,000) | 0 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (43,420,000) | (19,750,000) | 0 | $ 0 | |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (27,779,000) | (19,750,000) | 0 | ||
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent | 4,109,000 | 0 | 0 | ||
Interest Rate Contract [Member] | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (43,420,000) | (19,750,000) | 0 | ||
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net | $ (5,375) | ||||
Maximum Length of Time Hedged in Cash Flow Hedge | 45 months | ||||
Interest Rate Swap [Member] | |||||
Accumulated Other Income (Loss) | $ 72,300,000 | ||||
Accumulated Other Income (Loss) | $ 72,300,000 | ||||
Not Designated as Hedging Instrument [Member] | FTR [Member] | |||||
Purchase of Units Derivative Instruments Financial Transmission Rights | MWh | 3,168 | ||||
Sale of Units Derivative Instruments Financial Transmission Rights | MWh | 0 | ||||
Derivative, Nonmonetary Notional Amount, Purchase (Sales), Net | MWh | 3,168 | ||||
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | |||||
Purchase of Derivative Instruments Interest Rate Swap | $ 400,000,000 | ||||
Sale of Derivative Instruments Interest Rate Swap | 0 | ||||
Derivative, Notional Amount, Purchase (Sales), Net | 400,000,000 | ||||
Other Current Assets [Member] | Not Designated as Hedging Instrument [Member] | FTR [Member] | |||||
Derivative Asset, Fair Value, Gross Asset | 543,000,000 | 864,000,000 | |||
Other Current Assets [Member] | Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | |||||
Derivative Liability, Fair Value, Gross Liability | 63,215,000,000 | 0 | |||
Derivative Liability, Current | Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | |||||
Derivative Liability, Fair Value, Gross Liability | 0 | 26,560,000,000 | |||
Parent Company [Member] | |||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | $ 8,876,000 | 6,810,000 | 0 | ||
Number of Interest Rate Swaps | 3 | ||||
Other Comprehensive Income (Loss), Net of Tax | $ (27,779,000) | (19,750,000) | 0 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (43,420,000) | (19,750,000) | 0 | $ 0 | |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (27,779,000) | (19,750,000) | 0 | ||
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent | 4,109,000 | 0 | 0 | ||
Parent Company [Member] | Interest Rate Contract [Member] | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (43,420,000) | (19,750,000) | $ 0 | ||
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net | $ (5,375) | ||||
Maximum Length of Time Hedged in Cash Flow Hedge | 45 months | ||||
Parent Company [Member] | Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | |||||
Purchase of Derivative Instruments Interest Rate Swap | $ 400,000,000 | ||||
Sale of Derivative Instruments Interest Rate Swap | 0 | ||||
Derivative, Notional Amount, Purchase (Sales), Net | 400,000,000 | ||||
Parent Company [Member] | Other Current Assets [Member] | Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | |||||
Derivative Liability, Fair Value, Gross Liability | 63,215,000,000 | 0 | |||
Parent Company [Member] | Derivative Liability, Current | Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | |||||
Derivative Liability, Fair Value, Gross Liability | $ 0 | 26,560,000,000 | |||
Subsidiaries [Member] | Not Designated as Hedging Instrument [Member] | FTR [Member] | |||||
Purchase of Units Derivative Instruments Financial Transmission Rights | MWh | 3,168 | ||||
Sale of Units Derivative Instruments Financial Transmission Rights | MWh | 0 | ||||
Derivative, Nonmonetary Notional Amount, Purchase (Sales), Net | MWh | 3,168 | ||||
Subsidiaries [Member] | Other Current Assets [Member] | Not Designated as Hedging Instrument [Member] | FTR [Member] | |||||
Derivative Asset, Fair Value, Gross Asset | $ 543,000,000 | $ 864,000,000 |
Equity (Narrative) (Details)
Equity (Narrative) (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($) | |
Class of Stock [Line Items] | |||
Preferred Stock, Par or Stated Value Per Share | $ / shares | $ 100 | ||
Preferred Stock, Shares Authorized | 2,000,000 | ||
Ownership percentage by parent | 82.35% | ||
Debt to Capitalization Ratio, Maximum | 1 | ||
Interest Coverage Ratio | 2.50 | ||
Interest Coverage Ratio, Minimum | 1 | ||
Leverage Ratio | 0.67 | ||
Payments of Ordinary Dividends, Common Stock | $ | $ 108,739 | $ 136,426 | $ 130,179 |
Number of separate series of cumulative preferred stock | 5 | ||
Preferred Stock, Voting Rights | 2 | ||
Preferred stock outstanding | 591,353 | ||
Series A Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Dividend rate on preferred stock | 4.00% | ||
Preferred stock outstanding | 47,611 | ||
5.65% Series Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Dividend rate on preferred stock | 5.65% | 5.65% | |
Preferred stock issued | 500,000 | ||
Preferred stock outstanding | 500,000 | ||
Nonredeemable Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Preferred stock outstanding | 91,353 | ||
Series B Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Dividend rate on preferred stock | 4.20% | ||
Preferred stock outstanding | 19,331 | ||
Series C Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Dividend rate on preferred stock | 4.60% | ||
Preferred stock outstanding | 2,481 | ||
Series D Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Dividend rate on preferred stock | 4.80% | ||
Preferred stock outstanding | 21,930 | ||
Indianapolis Power And Light Company | |||
Class of Stock [Line Items] | |||
Preferred Stock, Par or Stated Value Per Share | $ / shares | $ 100 | ||
Preferred Stock, Shares Authorized | 2,000,000 | ||
Equity contributions from AES | $ | $ 0 | $ 0 | 65,000 |
Debt to capitalization ratio | 0.67 | ||
Debt to Capitalization Ratio, Maximum | 1 | ||
Dividends, Common Stock, Cash | $ | $ 140,600 | 159,000 | 156,750 |
Payments of Ordinary Dividends, Common Stock | $ | $ 147,600 | $ 159,000 | 142,250 |
Number of separate series of cumulative preferred stock | 5 | ||
Total preferred stock dividends declared | $ | $ 3,200 | ||
Preferred Stock, Voting Rights | 2 | ||
Preferred stock outstanding | 591,353 | ||
Indianapolis Power And Light Company | Series A Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Dividend rate on preferred stock | 4.00% | ||
Preferred stock outstanding | 47,611 | ||
Indianapolis Power And Light Company | 5.65% Series Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Dividend rate on preferred stock | 5.65% | 5.65% | |
Preferred stock issued | 500,000 | ||
Preferred stock outstanding | 500,000 | ||
Indianapolis Power And Light Company | Nonredeemable Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Preferred stock outstanding | 91,353 | ||
Indianapolis Power And Light Company | Series B Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Dividend rate on preferred stock | 4.20% | ||
Preferred stock outstanding | 19,331 | ||
Indianapolis Power And Light Company | Series C Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Dividend rate on preferred stock | 4.60% | ||
Preferred stock outstanding | 2,481 | ||
Indianapolis Power And Light Company | Series D Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Dividend rate on preferred stock | 4.80% | ||
Preferred stock outstanding | 21,930 | ||
AES U.S. Holdings, LLC [Member] | |||
Class of Stock [Line Items] | |||
Ownership Interest in Parent Company, Percent | 85.00% | ||
CDPQ [Member] | |||
Class of Stock [Line Items] | |||
Ownership Interest in Parent Company, Percent | 15.00% | ||
Minimum [Member] | |||
Class of Stock [Line Items] | |||
Dividend rate on preferred stock | 4.00% | ||
Minimum [Member] | Indianapolis Power And Light Company | |||
Class of Stock [Line Items] | |||
Dividend rate on preferred stock | 4.00% | ||
Maximum [Member] | |||
Class of Stock [Line Items] | |||
Dividend rate on preferred stock | 5.65% | ||
Maximum [Member] | Indianapolis Power And Light Company | |||
Class of Stock [Line Items] | |||
Dividend rate on preferred stock | 5.65% | ||
Additional Paid-in Capital [Member] | Indianapolis Power And Light Company | |||
Class of Stock [Line Items] | |||
Equity contributions from AES | $ | $ 0 | $ 0 | 65,000 |
Retained Earnings [Member] | Indianapolis Power And Light Company | |||
Class of Stock [Line Items] | |||
Dividends, Common Stock, Cash | $ | 140,600 | 159,000 | 156,750 |
Total preferred stock dividends declared | $ | $ 3,213 | $ 3,213 | $ 3,213 |
Equity (Summary Of Preferred St
Equity (Summary Of Preferred Stock) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Class of Stock [Line Items] | |||
Shares Outstanding | 591,353 | ||
Par value, plus premium, if applicable | $ 59,784 | $ 59,784 | $ 59,784 |
Preferred stock par value | $ 100 | ||
Preferred stock authorized | 2,000,000 | ||
4% Series Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Shares Outstanding | 47,611 | ||
Call Price | $ 118 | ||
Par value, plus premium, if applicable | $ 5,410 | $ 5,410 | 5,410 |
Dividend rate on preferred stock | 4.00% | ||
4.2% Series Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Shares Outstanding | 19,331 | ||
Call Price | $ 103 | ||
Par value, plus premium, if applicable | $ 1,933 | $ 1,933 | 1,933 |
Dividend rate on preferred stock | 4.20% | ||
4.6% Series Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Shares Outstanding | 2,481 | ||
Call Price | $ 103 | ||
Par value, plus premium, if applicable | $ 248 | $ 248 | 248 |
Dividend rate on preferred stock | 4.60% | ||
4.8% Series Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Shares Outstanding | 21,930 | ||
Call Price | $ 101 | ||
Par value, plus premium, if applicable | $ 2,193 | $ 2,193 | 2,193 |
Dividend rate on preferred stock | 4.80% | ||
5.65% Series Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Shares Outstanding | 500,000 | ||
Call Price | $ 100 | ||
Par value, plus premium, if applicable | $ 50,000 | $ 50,000 | 50,000 |
Dividend rate on preferred stock | 5.65% | 5.65% | |
Indianapolis Power And Light Company | |||
Class of Stock [Line Items] | |||
Shares Outstanding | 591,353 | ||
Par value, plus premium, if applicable | $ 59,784 | $ 59,784 | 59,784 |
Preferred stock par value | $ 100 | ||
Preferred stock authorized | 2,000,000 | ||
Indianapolis Power And Light Company | 4% Series Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Shares Outstanding | 47,611 | ||
Call Price | $ 118 | ||
Par value, plus premium, if applicable | $ 5,410 | $ 5,410 | 5,410 |
Dividend rate on preferred stock | 4.00% | ||
Indianapolis Power And Light Company | 4.2% Series Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Shares Outstanding | 19,331 | ||
Call Price | $ 103 | ||
Par value, plus premium, if applicable | $ 1,933 | $ 1,933 | 1,933 |
Dividend rate on preferred stock | 4.20% | ||
Indianapolis Power And Light Company | 4.6% Series Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Shares Outstanding | 2,481 | ||
Call Price | $ 103 | ||
Par value, plus premium, if applicable | $ 248 | $ 248 | 248 |
Dividend rate on preferred stock | 4.60% | ||
Indianapolis Power And Light Company | 4.8% Series Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Shares Outstanding | 21,930 | ||
Call Price | $ 101 | ||
Par value, plus premium, if applicable | $ 2,193 | $ 2,193 | 2,193 |
Dividend rate on preferred stock | 4.80% | ||
Indianapolis Power And Light Company | 5.65% Series Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Shares Outstanding | 500,000 | ||
Call Price | $ 100 | ||
Par value, plus premium, if applicable | $ 50,000 | $ 50,000 | $ 50,000 |
Dividend rate on preferred stock | 5.65% | 5.65% |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
May 31, 2014 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Apr. 14, 2020 | |
Debt Instrument [Line Items] | |||||
Secured debt gross | $ 2,683,800,000 | ||||
Aggregate principal amount | 2,758,800,000 | $ 2,678,800,000 | |||
Net proceeds from debt issuance | 564,568,000 | 0 | $ 169,936,000 | ||
Line of credit facility, term | 5 years | ||||
Long-term debt | 2,651,185,000 | 2,651,629,000 | |||
Loss on early extinguishment of debt | 2,424,000 | 0 | 0 | ||
Maximum borrowing capacity | $ 250,000,000 | 500,000,000 | |||
Line of Credit Facility, Remaining Borrowing Capacity | 250,000,000 | ||||
Maximum amount of short-term indebtedness outstanding | 500,000,000 | ||||
Authorized amount of debt to be issued | 350,000,000 | ||||
Authorized amount of debt to be refinanced | 185,000,000 | ||||
Preferred Stock Issuable in Lieu of Portion of Maximum Authorized Amount of Debt | 65,000,000 | ||||
Authority Remaining Available On Maximum Authorized Amount Of Debt To Be Refinanced | 95,000,000 | ||||
Letter of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, accordion feature | $ 150,000,000 | ||||
Line of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Line of Credit | 75,000,000 | 0 | |||
Indianapolis Power And Light Company | |||||
Debt Instrument [Line Items] | |||||
Secured debt gross | 1,803,800,000 | ||||
Aggregate principal amount | 1,878,800,000 | 1,803,800,000 | |||
Unsecured Debt | 0 | 89,886,000 | |||
Net proceeds from debt issuance | 90,000,000 | 0 | 104,936,000 | ||
Line of credit facility, term | 5 years | ||||
Long-term debt | 1,780,410,000 | 1,780,901,000 | |||
Maximum borrowing capacity | $ 250,000,000 | 500,000,000 | |||
Line of Credit Facility, Remaining Borrowing Capacity | 250,000,000 | ||||
Maximum amount of short-term indebtedness outstanding | 500,000,000 | ||||
Authorized amount of debt to be issued | 350,000,000 | ||||
Authorized amount of debt to be refinanced | 185,000,000 | ||||
Preferred Stock Issuable in Lieu of Portion of Maximum Authorized Amount of Debt | 65,000,000 | ||||
First mortgage bonds | 1,780,410,000 | 1,691,015,000 | |||
Authority Remaining Available On Maximum Authorized Amount Of Debt To Be Refinanced | $ 95,000,000 | ||||
Indianapolis Power And Light Company | Three Point Eight Seven Five Percent First Mortgage Bonds | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, stated interest rate | 3.875% | ||||
Indianapolis Power And Light Company | Letter of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, accordion feature | $ 150,000,000 | ||||
Indianapolis Power And Light Company | Line of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Line of Credit | $ 75,000,000 | 0 | |||
Ipalco Enterprises, Inc. [Member] | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount | 880,000,000 | 875,000,000 | |||
Net proceeds from debt issuance | 474,568,000 | 0 | 65,000,000 | ||
Early tender premium | (2,415,000) | 0 | 0 | ||
Long-term debt | 870,775,000 | 870,728,000 | |||
Loss on early extinguishment of debt | $ 2,415,000 | 0 | $ 0 | ||
First Mortgage Bond Seven [Member] | Indianapolis Power And Light Company | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, stated interest rate | 3.875% | ||||
First mortgage bonds | $ 55,000,000 | 55,000,000 | |||
First Mortgage Bonds [Member] | Indianapolis Power And Light Company | |||||
Debt Instrument [Line Items] | |||||
Secured debt gross | $ 1,803,800,000 | 1,803,800,000 | |||
FMB Twenty [Member] | Indianapolis Power And Light Company | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, stated interest rate | 4.05% | ||||
First mortgage bonds | $ 350,000,000 | 350,000,000 | |||
First Mortgage Bond Nine [Member] | Indianapolis Power And Light Company | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, stated interest rate | 3.125% | ||||
First mortgage bonds | $ 40,000,000 | 40,000,000 | |||
Environmental Facilities Refunding Revenue Notes, Series 2015A [Member] | Indianapolis Power And Light Company | |||||
Debt Instrument [Line Items] | |||||
Unsecured Debt | 0 | 30,000,000 | |||
Environmental Facilities Refunding Revenue Notes, Series 2015B [Member] | Indianapolis Power And Light Company | |||||
Debt Instrument [Line Items] | |||||
Unsecured Debt | $ 0 | 60,000,000 | |||
3.45% Senior Secured Notes [Member] | Ipalco Enterprises, Inc. [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, stated interest rate | 3.45% | ||||
Long-term debt | $ 0 | 405,000,000 | |||
First Mortgage Bond 4.65% Due June 2043 [Member] | Indianapolis Power And Light Company | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, stated interest rate | 4.65% | ||||
First mortgage bonds | $ 170,000,000 | 170,000,000 | |||
First Mortgage Bond 4.70% Due September 2045 [Member] | Indianapolis Power And Light Company | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, stated interest rate | 4.50% | ||||
First mortgage bonds | $ 130,000,000 | 130,000,000 | |||
First Mortgage Bond Nineteen [Member] | Indianapolis Power And Light Company | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, stated interest rate | 4.70% | ||||
First mortgage bonds | $ 260,000,000 | 260,000,000 | |||
Three Point Seven Zero Percent Senior Secured Notes [Domain] | Ipalco Enterprises, Inc. [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, stated interest rate | 3.70% | ||||
Long-term debt | $ 405,000,000 | 405,000,000 | |||
FMB Twenty - one [Member] | Indianapolis Power And Light Company | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, stated interest rate | 4.875% | ||||
First mortgage bonds | $ 105,000,000 | 105,000,000 | |||
Bank Term Loan Maturing July 2020 [Member] | Ipalco Enterprises, Inc. [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 0 | 65,000,000 | $ 65,000,000 | ||
First Mortgage Bond Eight [Member] | Indianapolis Power And Light Company | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, stated interest rate | 3.875% | ||||
First mortgage bonds | $ 40,000,000 | 40,000,000 | |||
First Mortgage Bond Thirteen [Member] | Indianapolis Power And Light Company | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, stated interest rate | 6.60% | ||||
First mortgage bonds | $ 100,000,000 | 100,000,000 | |||
First Mortgage Bond Fourteen [Member] | Indianapolis Power And Light Company | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, stated interest rate | 6.05% | ||||
First mortgage bonds | $ 158,800,000 | 158,800,000 | |||
First Mortgage Bond Fifteen [Member] | Indianapolis Power And Light Company | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, stated interest rate | 6.60% | ||||
First mortgage bonds | $ 165,000,000 | 165,000,000 | |||
First Mortgage Bond Sixteen [Member] | Indianapolis Power And Light Company | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, stated interest rate | 4.875% | ||||
First mortgage bonds | $ 140,000,000 | 140,000,000 | |||
FMB Twenty - three | Indianapolis Power And Light Company | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, stated interest rate | 0.95% | ||||
First mortgage bonds | $ 60,000,000 | $ 0 | |||
Three Point Eight Seven Five Percent First Mortgage Bonds | Indianapolis Power And Light Company | |||||
Debt Instrument [Line Items] | |||||
First mortgage bonds | 95,000,000 | ||||
Aggregated Principal Amount of First Mortgage Bonds to the Indiana Finance Authority in Two Series | Indianapolis Power And Light Company | |||||
Debt Instrument [Line Items] | |||||
First mortgage bonds | $ 90,000,000 |
Debt (Schedule Long-Term Indebt
Debt (Schedule Long-Term Indebtedness) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Apr. 14, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | |||
Unamortized discount - net | $ (6,600) | $ (6,500) | |
Debt Issuance Costs, Net | (26,000) | (20,700) | |
Long-term debt | 2,651,185 | 2,651,629 | |
Current portion of long-term debt | 94,907 | 559,199 | |
Long-term debt | 2,556,278 | 2,092,430 | |
Ipalco Enterprises, Inc. [Member] | |||
Debt Instrument [Line Items] | |||
Unamortized discount - net | (625) | (313) | |
Debt Issuance Costs, Net | (8,600) | (3,959) | |
Long-term debt | 870,775 | 870,728 | |
Current portion of long-term debt | 0 | 469,313 | |
Long-term debt | 870,775 | 401,415 | |
Ipalco Enterprises, Inc. [Member] | Bank Term Loan Maturing July 2020 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 0 | $ 65,000 | 65,000 |
Ipalco Enterprises, Inc. [Member] | 3.45% Senior Secured Notes [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 0 | 405,000 | |
Debt, stated interest rate | 3.45% | ||
Ipalco Enterprises, Inc. [Member] | Three Point Seven Zero Percent Senior Secured Notes [Domain] | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 405,000 | 405,000 | |
Debt, stated interest rate | 3.70% | ||
Ipalco Enterprises, Inc. [Member] | Four Point Two Five Percent Senior Secured Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 475,000 | 0 | |
Debt, stated interest rate | 4.25% | ||
Indianapolis Power And Light Company | |||
Debt Instrument [Line Items] | |||
First mortgage bonds | $ 1,780,410 | 1,691,015 | |
Unamortized discount - net | (6,006) | (6,156) | |
Debt Issuance Costs, Net | (17,400) | (16,700) | |
Unsecured Debt | 0 | 89,886 | |
Long-term debt | 1,780,410 | 1,780,901 | |
Current portion of long-term debt | 94,907 | 89,886 | |
Long-term debt | 1,685,503 | 1,691,015 | |
Indianapolis Power And Light Company | First Mortgage Bond 3.875% Due August 2021 [Member] | |||
Debt Instrument [Line Items] | |||
First mortgage bonds | $ 55,000 | 55,000 | |
Debt, stated interest rate | 3.875% | ||
Indianapolis Power And Light Company | First Mortgage Bond 3.875% Due August 2021 [Member] | |||
Debt Instrument [Line Items] | |||
First mortgage bonds | $ 40,000 | 40,000 | |
Debt, stated interest rate | 3.875% | ||
Indianapolis Power And Light Company | First Mortgage Bond 4.55% Due December 2024 [Member] | |||
Debt Instrument [Line Items] | |||
First mortgage bonds | $ 40,000 | 40,000 | |
Debt, stated interest rate | 3.125% | ||
Indianapolis Power And Light Company | First Mortgage Bond 6.60% Due January 2034 [Member] | |||
Debt Instrument [Line Items] | |||
First mortgage bonds | $ 100,000 | 100,000 | |
Debt, stated interest rate | 6.60% | ||
Indianapolis Power And Light Company | First Mortgage Bond 6.05% Due October 2036 [Member] | |||
Debt Instrument [Line Items] | |||
First mortgage bonds | $ 158,800 | 158,800 | |
Debt, stated interest rate | 6.05% | ||
Indianapolis Power And Light Company | First Mortgage Bond 6.60% Due June 2037 [Member] | |||
Debt Instrument [Line Items] | |||
First mortgage bonds | $ 165,000 | 165,000 | |
Debt, stated interest rate | 6.60% | ||
Indianapolis Power And Light Company | First Mortgage Bond 4.875% Due November 2041 [Member] | |||
Debt Instrument [Line Items] | |||
First mortgage bonds | $ 140,000 | 140,000 | |
Debt, stated interest rate | 4.875% | ||
Indianapolis Power And Light Company | First Mortgage Bond 4.65% Due June 2043 [Member] | |||
Debt Instrument [Line Items] | |||
First mortgage bonds | $ 170,000 | 170,000 | |
Debt, stated interest rate | 4.65% | ||
Indianapolis Power And Light Company | First Mortgage Bond 4.70% Due September 2045 [Member] | |||
Debt Instrument [Line Items] | |||
First mortgage bonds | $ 130,000 | 130,000 | |
Debt, stated interest rate | 4.50% | ||
Indianapolis Power And Light Company | First Mortgage Bond Nineteen [Member] | |||
Debt Instrument [Line Items] | |||
First mortgage bonds | $ 260,000 | 260,000 | |
Debt, stated interest rate | 4.70% | ||
Indianapolis Power And Light Company | FMB Twenty [Member] | |||
Debt Instrument [Line Items] | |||
First mortgage bonds | $ 350,000 | 350,000 | |
Debt, stated interest rate | 4.05% | ||
Indianapolis Power And Light Company | FMB Twenty - one [Member] | |||
Debt Instrument [Line Items] | |||
First mortgage bonds | $ 105,000 | 105,000 | |
Debt, stated interest rate | 4.875% | ||
Indianapolis Power And Light Company | Environmental Facilities Refunding Revenue Notes, Series 2015A [Member] | |||
Debt Instrument [Line Items] | |||
Unsecured Debt | $ 0 | 30,000 | |
Indianapolis Power And Light Company | Environmental Facilities Refunding Revenue Notes, Series 2015B [Member] | |||
Debt Instrument [Line Items] | |||
Unsecured Debt | 0 | 60,000 | |
Indianapolis Power And Light Company | FMB Twenty - two | |||
Debt Instrument [Line Items] | |||
First mortgage bonds | $ 30,000 | 0 | |
Debt, stated interest rate | 0.75% | ||
Indianapolis Power And Light Company | FMB Twenty - three | |||
Debt Instrument [Line Items] | |||
First mortgage bonds | $ 60,000 | 0 | |
Debt, stated interest rate | 0.95% | ||
Secured Debt [Member] | Indianapolis Power And Light Company | |||
Debt Instrument [Line Items] | |||
Unamortized discount - net | $ (6,006) | ||
Debt Issuance Costs, Net | (17,384) | (16,629) | |
Unsecured Debt [Member] | Indianapolis Power And Light Company | |||
Debt Instrument [Line Items] | |||
Debt Issuance Costs, Net | $ 0 | $ (114) |
Debt (Schedule Of Maturities On
Debt (Schedule Of Maturities On Long-Term Indebtedness) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Entity Information [Line Items] | |
2016 | $ 95,000 |
2017 | 0 |
2018 | 0 |
2019 | 445,000 |
2020 | 0 |
Thereafter | 2,143,800 |
Total | 2,683,800 |
Indianapolis Power And Light Company | |
Entity Information [Line Items] | |
2016 | 95,000 |
2017 | 0 |
2018 | 0 |
2019 | 40,000 |
2020 | 0 |
Thereafter | 1,668,800 |
Total | $ 1,803,800 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | Mar. 25, 2014 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Entity Information [Line Items] | |||||
Income taxes | $ 27,000 | $ 29,600 | $ 28,275 | ||
Additional reduction to the state corporate income tax rate | 1.60% | ||||
Reduction to the state corporate income tax rate | 2.00% | ||||
Decrease in deferred taxes | 1,300 | ||||
Tax benefit from temporary differences | $ 100 | ||||
Statutory state income tax rate | 5.375% | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% | 21.00% | ||
Indianapolis Power And Light Company | |||||
Entity Information [Line Items] | |||||
Income taxes | $ 27,000 | $ 37,400 | $ 33,750 | ||
Additional reduction to the state corporate income tax rate | 1.60% | ||||
Reduction to the state corporate income tax rate | 2.00% | ||||
Decrease in deferred taxes | 1,300 | ||||
Tax benefit from temporary differences | $ 100 | ||||
Statutory state income tax rate | 5.375% | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% | 21.00% | ||
Scenario, Forecast [Member] | |||||
Entity Information [Line Items] | |||||
Statutory state income tax rate | 5.075% | ||||
Scenario, Forecast [Member] | Indianapolis Power And Light Company | |||||
Entity Information [Line Items] | |||||
Statutory state income tax rate | 5.075% |
Income Taxes (Schedule Of Feder
Income Taxes (Schedule Of Federal And State Income Taxed Charged To Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes [Line Items] | |||
Less: income tax expense | $ 28,592 | $ 35,528 | $ 13,449 |
Charged To Utility Operating Expense [Member] | |||
Income Taxes [Line Items] | |||
Current income taxes, Federal | 19,489 | 17,229 | 20,341 |
Current income taxes, State | 6,249 | 3,022 | 8,843 |
Total current income taxes | 25,738 | 20,251 | 29,184 |
Deferred income taxes, Federal | 323 | 7,547 | (15,150) |
Deferred income taxes, State | 2,531 | 7,745 | 326 |
Total deferred income taxes | 2,854 | 15,292 | (14,824) |
Net amortization of investment credit | 0 | (15) | (911) |
Less: income tax expense | 28,592 | 35,528 | 13,449 |
Indianapolis Power And Light Company | |||
Income Taxes [Line Items] | |||
Less: income tax expense | 40,134 | 43,430 | 21,590 |
Indianapolis Power And Light Company | Charged To Utility Operating Expense [Member] | |||
Income Taxes [Line Items] | |||
Current income taxes, Federal | 28,395 | 23,941 | 26,021 |
Current income taxes, State | 8,661 | 4,370 | 11,215 |
Total current income taxes | 37,056 | 28,311 | 37,236 |
Deferred income taxes, Federal | 503 | 7,578 | (15,080) |
Deferred income taxes, State | 2,576 | 7,556 | 345 |
Total deferred income taxes | 3,079 | 15,134 | (14,735) |
Net amortization of investment credit | 0 | (15) | (911) |
Less: income tax expense | $ 40,135 | $ 43,430 | $ 21,590 |
Income Taxes (Schedule Of Effec
Income Taxes (Schedule Of Effective Income Tax Rate) (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Entity Information [Line Items] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% | 21.00% |
State income tax, net of federal tax benefit | 4.20% | 4.40% | 5.60% |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Research and Development, Percent | 0.00% | 0.00% | (1.90%) |
Depreciation flow through and amortization | (6.80%) | (5.70%) | (15.60%) |
Effective Income Tax Rate Reconciliation, Funds Used during Construction, Equity | 1.00% | 0.20% | 0.30% |
Other - net | 1.20% | 1.30% | (0.30%) |
Effective tax rate | 20.60% | 21.20% | 9.10% |
Indianapolis Power And Light Company | |||
Entity Information [Line Items] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% | 21.00% |
State income tax, net of federal tax benefit | 4.20% | 4.40% | 5.60% |
Amortization of investment tax credits | 0.00% | 0.00% | (0.50%) |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Research and Development, Percent | 0.00% | 0.00% | (1.60%) |
Depreciation flow through and amortization | (5.10%) | (4.70%) | (12.60%) |
Effective Income Tax Rate Reconciliation, Funds Used during Construction, Equity | 0.70% | 0.20% | 0.30% |
Other - net | 1.00% | 0.80% | (0.10%) |
Effective tax rate | 21.80% | 21.70% | 12.10% |
Income Taxes (Schedule Of Defer
Income Taxes (Schedule Of Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Entity Information [Line Items] | ||
Relating to utility property, net | $ 408,291 | $ 411,182 |
Regulatory assets recoverable through future rates | 82,783 | 69,156 |
Other | 5,485 | 6,192 |
Total deferred tax liabilities | 496,559 | 486,530 |
Investment tax credit | 6 | 7 |
Regulatory liabilities including ARO | 197,657 | 191,676 |
Employee benefit plans | 3,866 | 8,545 |
Other | 19,316 | 13,441 |
Total deferred tax assets | 220,845 | 213,669 |
Deferred income tax liability – net | 275,714 | 272,861 |
Indianapolis Power And Light Company | ||
Entity Information [Line Items] | ||
Relating to utility property, net | 408,291 | 411,182 |
Regulatory assets recoverable through future rates | 82,783 | 69,156 |
Other | 5,323 | 5,742 |
Total deferred tax liabilities | 496,397 | 486,080 |
Investment tax credit | 6 | 7 |
Regulatory liabilities including ARO | 197,657 | 191,676 |
Employee benefit plans | 3,866 | 8,556 |
Other | 5,069 | 6,682 |
Total deferred tax assets | 206,598 | 206,921 |
Deferred income tax liability – net | $ 289,799 | $ 279,159 |
Income Taxes (Reconciliation Of
Income Taxes (Reconciliation Of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits at January 1 | $ 7,056 | $ 7,056 | $ 7,049 |
Gross increases - current period tax positions | 312 | 0 | 0 |
Gross decreases - prior period tax positions | 0 | 0 | 7 |
Unrecognized tax benefits at December 31 | 7,368 | 7,056 | 7,056 |
Indianapolis Power And Light Company | |||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits at January 1 | 7,056 | 7,056 | 7,049 |
Gross increases - current period tax positions | 312 | 0 | 0 |
Gross decreases - prior period tax positions | 0 | 0 | (7) |
Unrecognized tax benefits at December 31 | $ 7,368 | $ 7,056 | $ 7,056 |
Benefit Plans (Narrative) (Deta
Benefit Plans (Narrative) (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($)employee | Dec. 31, 2019USD ($)employee | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Projected Benefit Obligation | $ 842,525 | $ 782,795 | |||
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets, Plan Assets | 850,020 | 769,704 | |||
Noncurrent liabilities | 1,174 | 13,091 | |||
Benefit obligation in excess of plan assets | 7,495 | (13,091) | |||
Asset, Defined Benefit Pension Plan, Noncurrent | 8,669 | 0 | |||
Accumulated benefit obligation in excess of plan assets | (19,562) | 1,888 | |||
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | 66,827 | 88,311 | $ (88,300) | ||
Net loss (gain) arising during period | 14,110 | 4,472 | |||
Pension liability actuarial loss, change in discount rate | 66,800 | ||||
Amount included in regulatory assets and liabilities | 145,526 | 167,750 | |||
Defined Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Plan Assets | $ 850,020 | 769,704 | |||
Expected return on plan assets | 5.05% | ||||
Effect of 25 basis point increase in discount rate on pension expense | (1,400) | ||||
Effect of 25 basis point decrease in discount rate on pension expense | 1,300 | ||||
Employer contributions during quarter | $ 87 | 28 | 30,100 | ||
Funded target liability (percent) | 100.00% | ||||
Pension expense | 38,500 | 37,500 | $ 62,100 | ||
Service cost | $ 8,272 | 7,412 | 8,450 | ||
Interest cost | 22,151 | 27,343 | 25,220 | ||
Defined Benefit Plan, Plan with Plan Assets in Excess of Accumulated Benefit Obligation, Plan Assets | (19,600) | ||||
Deferred Compensation Arrangement with Individual, Compensation Expense | 300 | 300 | 500 | ||
Total Legal Loss Contingencies Accrued | 13,400 | 2,600 | |||
Environmentally Beneficial Project Expenditure | 325 | ||||
Environmental Mitigation Project Costs | 5,000 | ||||
Payment of Civil Penalties | 1,525 | ||||
Defined Benefit Plan, Benefit Obligation | $ 842,525 | $ 782,795 | $ 697,228 | ||
Pension Benefit [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Percentage of employees covered by the plan | 72.00% | ||||
Benefit obligation in excess of plan assets | $ (8,700) | ||||
Discount rate | 3.33% | 4.36% | 3.67% | ||
Expected return on plan assets | 5.05% | 4.50% | 5.45% | ||
Defined Benefit Plan, Plan with Plan Assets in Excess of Accumulated Benefit Obligation, Plan Assets | $ (20,700) | ||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 2.46% | 3.33% | |||
Supplemental Retirement Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Number of plan participants | employee | 22 | ||||
Benefit obligation in excess of plan assets | $ 1,200 | ||||
Discount rate | 3.05% | 4.24% | 3.60% | ||
Expected return on plan assets | 4.45% | 4.50% | 5.45% | ||
Defined Benefit Plan, Plan with Plan Assets in Excess of Accumulated Benefit Obligation, Plan Assets | $ 1,100 | ||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 2.31% | 3.05% | |||
Postretirement Benefit Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Number of plan participants, active | employee | 142 | ||||
Number of plan participants, retired | employee | 16 | ||||
Indianapolis Power And Light Company | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Projected Benefit Obligation | $ 842,525 | $ 782,795 | |||
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets, Plan Assets | 850,020 | 769,704 | |||
Noncurrent liabilities | 1,174 | 13,091 | |||
Benefit obligation in excess of plan assets | 7,495 | (13,091) | |||
Asset, Defined Benefit Pension Plan, Noncurrent | 8,669 | 0 | |||
Accumulated benefit obligation in excess of plan assets | (19,562) | 1,888 | |||
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | 66,827 | 88,311 | |||
Net loss (gain) arising during period | 14,110 | 4,472 | |||
Pension liability actuarial loss | 80,900 | ||||
Amount included in regulatory assets and liabilities | $ 145,526 | $ 167,750 | |||
Minimum percentage of unrecognized net loss over benefit obligation or assets in order to be amortized | 10.00% | ||||
Amortization period of unrecognized loss | 10 years 10 months 2 days | ||||
Defined Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Plan Assets | $ 850,020 | $ 769,704 | |||
Unfunded status of plan | 7,500 | ||||
Expected return on plan assets | 5.05% | ||||
Effect of 25 basis point increase in discount rate on pension expense | (1,400) | ||||
Effect of 25 basis point decrease in discount rate on pension expense | 1,300 | ||||
Employer contributions during quarter | $ 87 | $ 28 | $ 30,100 | ||
Funded target liability (percent) | 100.00% | ||||
Pension expense | 38,500 | 37,500 | 62,100 | ||
Service cost | $ 8,272 | 7,412 | 8,450 | ||
Interest cost | 22,151 | 27,343 | 25,220 | ||
Deferred Compensation Arrangement with Individual, Compensation Expense | 300 | 300 | 500 | ||
Defined Benefit Plan, Benefit Obligation | 842,525 | $ 782,795 | $ 697,228 | ||
Indianapolis Power And Light Company | Pension Benefit [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Percentage of employees covered by the plan | 72.00% | ||||
Benefit obligation in excess of plan assets | 8,700 | ||||
Accumulated benefit obligation in excess of plan assets | $ (20,700) | ||||
Discount rate | 3.33% | 4.36% | 3.67% | ||
Expected return on plan assets | 5.05% | 4.50% | 5.45% | ||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 2.46% | 3.33% | |||
Indianapolis Power And Light Company | Supplemental Retirement Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Number of plan participants | employee | 22 | ||||
Benefit obligation in excess of plan assets | $ (1,200) | ||||
Accumulated benefit obligation in excess of plan assets | $ 1,100 | ||||
Discount rate | 3.05% | 4.24% | 3.60% | ||
Expected return on plan assets | 4.45% | 4.50% | 5.45% | ||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 2.31% | 3.05% | |||
Indianapolis Power And Light Company | Postretirement Benefit Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Number of plan participants, active | employee | 142 | ||||
Number of plan participants, retired | employee | 16 | ||||
Indianapolis Power And Light Company | Postretirement Health Coverage [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Benefit Obligation | $ 4,300 | $ 6,400 | |||
Subsequent Event [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Expected return on plan assets | 5.05% | ||||
Subsequent Event [Member] | Indianapolis Power And Light Company | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Expected return on plan assets | 5.05% | ||||
Normal service cost | $ 6,100 | ||||
Plan expenses | $ 400 | ||||
Thrift Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Percentage of employees covered by the plan | 80.00% | ||||
Defined contripution plan contributions | 3,400 | $ 3,300 | 3,300 | ||
Thrift Plan [Member] | Indianapolis Power And Light Company | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Percentage of employees covered by the plan | 80.00% | ||||
Defined contripution plan contributions | $ 3,400 | 3,300 | 3,300 | ||
Retirement Savings Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Percentage of employees covered by the plan | 20.00% | ||||
Percentage of employee's base compensation matched | 5.00% | ||||
Defined Contribution, Employer Matching Contribution, Non-discretionary, percent of match | 4.00% | ||||
Defined contripution plan contributions | $ 1,800 | $ 1,600 | 1,700 | ||
Retirement Savings Plan [Member] | Indianapolis Power And Light Company | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Percentage of employees covered by the plan | 20.00% | 20.00% | |||
Percentage of employee's base compensation matched | 5.00% | ||||
Defined Contribution, Employer Matching Contribution, Non-discretionary, percent of match | 4.00% | ||||
Defined contripution plan contributions | $ 1,800 | $ 1,600 | $ 1,700 | ||
Union Employees [Member] | Thrift Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Percentage of employees covered by the plan | 8.00% | ||||
Union Employees [Member] | Thrift Plan [Member] | Indianapolis Power And Light Company | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Percentage of employees covered by the plan | 8.00% | ||||
Expected Increase or Decrease in Discount Rate [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Effect of Twenty Five Basis Point Increase Or Decrease In Discount Rate On Pension Expense | 2500.00% | ||||
Expected Increase or Decrease in Discount Rate [Member] | Indianapolis Power And Light Company | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Effect of Twenty Five Basis Point Increase Or Decrease In Discount Rate On Pension Expense | 2500.00% | ||||
Forecast [Member] | Supplemental Retirement Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Expected return on plan assets | 3.60% | ||||
Forecast [Member] | Indianapolis Power And Light Company | Supplemental Retirement Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Expected return on plan assets | 3.60% |
Benefit Plans (Schedule Of Defi
Benefit Plans (Schedule Of Defined Benefit Plans Disclosures) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Change in benefit obligation: | |||
Projected benefit obligation at beginning Measurement Date (see below) | $ 782,795 | $ 697,228 | |
Service cost | 8,272 | 7,412 | $ 8,450 |
Interest cost | 22,151 | 27,343 | 25,220 |
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | 66,827 | 88,311 | (88,300) |
Amendments (primarily increases in pension bands) | 967 | 0 | |
Benefits paid | (38,487) | (37,499) | |
Projected benefit obligation at ending Measurement Date | 842,525 | 782,795 | 697,228 |
Change in plan assets: | |||
Fair value of plan assets at beginning Measurement Date | 769,704 | 684,485 | |
Actual return on plan assets | 118,716 | 122,690 | |
Employer contributions during quarter | 87 | 28 | 30,100 |
Benefits paid | (38,487) | (37,499) | |
Fair value of plan assets at ending Measurement Date | 850,020 | 769,704 | 684,485 |
Unfunded status | 7,495 | (13,091) | |
Asset, Defined Benefit Pension Plan, Noncurrent | (8,669) | 0 | |
Amounts recognized in the statement of financial position under ASC 715: | |||
Noncurrent liabilities | (1,174) | (13,091) | |
Net amount recognized | (13,091) | ||
Sources of change in regulatory assets(1): | |||
Prior service cost (credit) arising during period | 967 | 0 | |
Net loss (gain) arising during period | (14,110) | (4,472) | |
Amortization of prior service cost | (3,677) | (3,823) | |
Amortization of gain (loss) | (8,115) | (11,084) | |
Total recognized in regulatory assets | (24,935) | (19,379) | |
Net loss (gain) | 145,526 | 167,750 | |
Prior service cost (credit) | 11,613 | 14,323 | |
Total amounts included in regulatory assets (liabilities) | $ 157,139 | $ 182,073 | |
Percentage by asset category | 100.00% | 100.00% | |
Assets for Plan Benefits, Defined Benefit Plan | $ 7,495 | ||
Fair Value, Inputs, Level 1 [Member] | |||
Change in plan assets: | |||
Fair value of plan assets at beginning Measurement Date | 7,046 | ||
Fair value of plan assets at ending Measurement Date | 6,769 | $ 7,046 | |
Significant Observable Inputs (Level 2) [Member] | |||
Change in plan assets: | |||
Fair value of plan assets at beginning Measurement Date | 762,658 | ||
Fair value of plan assets at ending Measurement Date | 843,251 | 762,658 | |
Indianapolis Power And Light Company | |||
Change in benefit obligation: | |||
Projected benefit obligation at beginning Measurement Date (see below) | 782,795 | 697,228 | |
Service cost | 8,272 | 7,412 | 8,450 |
Interest cost | 22,151 | 27,343 | 25,220 |
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | 66,827 | 88,311 | |
Amendments (primarily increases in pension bands) | 967 | 0 | |
Benefits paid | (38,487) | (37,499) | |
Projected benefit obligation at ending Measurement Date | 842,525 | 782,795 | 697,228 |
Change in plan assets: | |||
Fair value of plan assets at beginning Measurement Date | 769,704 | 684,485 | |
Actual return on plan assets | 118,716 | 122,690 | |
Employer contributions during quarter | 87 | 28 | 30,100 |
Benefits paid | (38,487) | (37,499) | |
Fair value of plan assets at ending Measurement Date | 850,020 | 769,704 | $ 684,485 |
Unfunded status | 7,495 | (13,091) | |
Asset, Defined Benefit Pension Plan, Noncurrent | (8,669) | 0 | |
Amounts recognized in the statement of financial position under ASC 715: | |||
Noncurrent liabilities | (1,174) | (13,091) | |
Net amount recognized | (13,091) | ||
Sources of change in regulatory assets(1): | |||
Prior service cost (credit) arising during period | 967 | 0 | |
Net loss (gain) arising during period | (14,110) | (4,472) | |
Amortization of prior service cost | (3,677) | (3,823) | |
Amortization of gain (loss) | (8,115) | (11,084) | |
Total recognized in regulatory assets | (24,935) | (19,379) | |
Net loss (gain) | 145,526 | 167,750 | |
Prior service cost (credit) | 11,613 | 14,323 | |
Total amounts included in regulatory assets (liabilities) | $ 157,139 | $ 182,073 | |
Percentage by asset category | 100.00% | 100.00% | |
Assets for Plan Benefits, Defined Benefit Plan | $ (7,495) | ||
Indianapolis Power And Light Company | Fair Value, Inputs, Level 1 [Member] | |||
Change in plan assets: | |||
Fair value of plan assets at beginning Measurement Date | 7,046 | ||
Fair value of plan assets at ending Measurement Date | 6,769 | $ 7,046 | |
Indianapolis Power And Light Company | Significant Observable Inputs (Level 2) [Member] | |||
Change in plan assets: | |||
Fair value of plan assets at beginning Measurement Date | 762,658 | ||
Fair value of plan assets at ending Measurement Date | 843,251 | 762,658 | |
US Government Debt Securities [Member] | |||
Change in plan assets: | |||
Fair value of plan assets at beginning Measurement Date | 154,798 | ||
Fair value of plan assets at ending Measurement Date | $ 118,255 | $ 154,798 | |
Sources of change in regulatory assets(1): | |||
Percentage by asset category | 14.00% | 20.00% | |
US Government Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Change in plan assets: | |||
Fair value of plan assets at beginning Measurement Date | $ 39 | ||
Fair value of plan assets at ending Measurement Date | 131 | $ 39 | |
US Government Debt Securities [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Change in plan assets: | |||
Fair value of plan assets at beginning Measurement Date | 154,759 | ||
Fair value of plan assets at ending Measurement Date | 118,124 | 154,759 | |
US Government Debt Securities [Member] | Indianapolis Power And Light Company | |||
Change in plan assets: | |||
Fair value of plan assets at beginning Measurement Date | 154,798 | ||
Fair value of plan assets at ending Measurement Date | $ 118,255 | $ 154,798 | |
Sources of change in regulatory assets(1): | |||
Percentage by asset category | 14.00% | 20.00% | |
US Government Debt Securities [Member] | Indianapolis Power And Light Company | Fair Value, Inputs, Level 1 [Member] | |||
Change in plan assets: | |||
Fair value of plan assets at beginning Measurement Date | $ 39 | ||
Fair value of plan assets at ending Measurement Date | 131 | $ 39 | |
US Government Debt Securities [Member] | Indianapolis Power And Light Company | Significant Observable Inputs (Level 2) [Member] | |||
Change in plan assets: | |||
Fair value of plan assets at beginning Measurement Date | 154,759 | ||
Fair value of plan assets at ending Measurement Date | $ 118,124 | $ 154,759 |
Benefit Plans (Information For
Benefit Plans (Information For Pension Plans With A Benefit Obligation In Excess Of Plan Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Entity Information [Line Items] | ||
Defined Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Projected Benefit Obligation | $ 842,525 | $ 782,795 |
Defined Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Plan Assets | 850,020 | 769,704 |
Benefit obligation in excess of plan assets | (7,495) | 13,091 |
Indianapolis Power And Light Company | ||
Entity Information [Line Items] | ||
Defined Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Projected Benefit Obligation | 842,525 | 782,795 |
Defined Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Plan Assets | 850,020 | 769,704 |
Benefit obligation in excess of plan assets | $ (7,495) | $ 13,091 |
Benefit Plans (Information Fo_2
Benefit Plans (Information For Pension Plans With An Accumulated Benefit Obligation In Excess Of Plan Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Entity Information [Line Items] | ||
Accumulated benefit obligation | $ 830,458 | $ 771,592 |
Plan assets | 850,020 | 769,704 |
Accumulated benefit obligation in excess of plan assets | (19,562) | 1,888 |
Indianapolis Power And Light Company | ||
Entity Information [Line Items] | ||
Accumulated benefit obligation | 830,458 | 771,592 |
Plan assets | 850,020 | 769,704 |
Accumulated benefit obligation in excess of plan assets | $ (19,562) | $ 1,888 |
Benefit Plans (Schedule Of Net
Benefit Plans (Schedule Of Net Periodic Benefit Costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 8,272 | $ 7,412 | $ 8,450 |
Interest cost | 22,151 | 27,343 | 25,220 |
Expected return on assets | (37,779) | (29,907) | (40,801) |
Defined Benefit Plan Amortization of prior service cost net of acceleration component of curtailment charge | 3,677 | 3,823 | 3,837 |
Recognized actuarial loss | 8,115 | 11,084 | 11,403 |
Recognized settlement loss | 0 | 0 | 1,230 |
Net periodic benefit cost | 4,436 | 19,755 | 9,339 |
Less: amounts capitalized | 372 | 1,237 | 1,223 |
Amount charged to expense | $ 4,064 | 18,518 | 8,116 |
Expected return on plan assets | 5.05% | ||
Asset, Defined Benefit Pension Plan, Noncurrent | $ 8,669 | 0 | |
Indianapolis Power And Light Company | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 8,272 | 7,412 | 8,450 |
Interest cost | 22,151 | 27,343 | 25,220 |
Expected return on assets | (37,779) | (29,907) | (40,801) |
Defined Benefit Plan Amortization of prior service cost net of acceleration component of curtailment charge | 3,677 | 3,823 | 3,837 |
Recognized actuarial loss | 8,115 | 11,084 | 11,403 |
Recognized settlement loss | 0 | 0 | 1,230 |
Net periodic benefit cost | 4,436 | 19,755 | 9,339 |
Less: amounts capitalized | 372 | 1,237 | 1,223 |
Amount charged to expense | 4,064 | $ 18,518 | $ 8,116 |
Expected return on plan assets | 5.05% | ||
Asset, Defined Benefit Pension Plan, Noncurrent | $ 8,669 | $ 0 | |
Pension Benefit [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.33% | 4.36% | 3.67% |
Expected return on plan assets | 5.05% | 4.50% | 5.45% |
Pension Benefit [Member] | Indianapolis Power And Light Company | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.33% | 4.36% | 3.67% |
Expected return on plan assets | 5.05% | 4.50% | 5.45% |
Supplemental Retirement Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.05% | 4.24% | 3.60% |
Expected return on plan assets | 4.45% | 4.50% | 5.45% |
Supplemental Retirement Plan [Member] | Indianapolis Power And Light Company | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.05% | 4.24% | 3.60% |
Expected return on plan assets | 4.45% | 4.50% | 5.45% |
Benefit Plans (Schedule Of Asse
Benefit Plans (Schedule Of Asset Allocation Guidelines) (Details) | Dec. 31, 2020 |
Equity Securities [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target Allocation | 36.00% |
Equity Securities [Member] | Indianapolis Power And Light Company | |
Defined Benefit Plan Disclosure [Line Items] | |
Target Allocation | 36.00% |
Debt Securities [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target Allocation | 64.00% |
Debt Securities [Member] | Indianapolis Power And Light Company | |
Defined Benefit Plan Disclosure [Line Items] | |
Target Allocation | 64.00% |
Benefit Plans (Schedule Of Fair
Benefit Plans (Schedule Of Fair Value Of Pension Plan Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | $ 850,020 | $ 769,704 | $ 684,485 |
Percentage by asset category | 100.00% | 100.00% | |
Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | $ 6,769 | $ 7,046 | |
Significant Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 843,251 | 762,658 | |
Short-Term Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | $ 2,221 | $ 2,599 | |
Percentage by asset category | 0.00% | 0.00% | |
Short-Term Investments [Member] | Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | $ 2,221 | $ 2,599 | |
US Government Debt Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | $ 118,255 | $ 154,798 | |
Percentage by asset category | 14.00% | 20.00% | |
US Government Debt Securities [Member] | Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | $ 131 | $ 39 | |
US Government Debt Securities [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 118,124 | 154,759 | |
Equity Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | $ 323,253 | ||
Percentage by asset category | 38.00% | ||
Equity Funds [Member] | Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | $ 2,839 | ||
Equity Funds [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 320,414 | ||
Fixed Income [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | $ 406,291 | ||
Percentage by asset category | 48.00% | ||
Fixed Income [Member] | Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | $ 1,578 | ||
Fixed Income [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 404,713 | ||
Domestic Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | $ 214,369 | ||
Percentage by asset category | 28.00% | ||
Domestic Equity Securities [Member] | Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | $ 2,744 | ||
Domestic Equity Securities [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 211,625 | ||
Foreign Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | $ 397,938 | ||
Percentage by asset category | 52.00% | ||
Foreign Equity Securities [Member] | Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | $ 1,664 | ||
Foreign Equity Securities [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 396,274 | ||
Indianapolis Power And Light Company | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | $ 850,020 | $ 769,704 | $ 684,485 |
Percentage by asset category | 100.00% | 100.00% | |
Indianapolis Power And Light Company | Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | $ 6,769 | $ 7,046 | |
Indianapolis Power And Light Company | Significant Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 843,251 | 762,658 | |
Indianapolis Power And Light Company | Short-Term Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | $ 2,221 | $ 2,599 | |
Percentage by asset category | 0.00% | 0.00% | |
Indianapolis Power And Light Company | Short-Term Investments [Member] | Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | $ 2,221 | $ 2,599 | |
Indianapolis Power And Light Company | US Government Debt Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | $ 118,255 | $ 154,798 | |
Percentage by asset category | 14.00% | 20.00% | |
Indianapolis Power And Light Company | US Government Debt Securities [Member] | Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | $ 131 | $ 39 | |
Indianapolis Power And Light Company | US Government Debt Securities [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 118,124 | 154,759 | |
Indianapolis Power And Light Company | Equity Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | $ 323,253 | ||
Percentage by asset category | 38.00% | ||
Indianapolis Power And Light Company | Equity Funds [Member] | Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | $ 2,839 | ||
Indianapolis Power And Light Company | Equity Funds [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 320,414 | ||
Indianapolis Power And Light Company | Fixed Income [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | $ 406,291 | ||
Percentage by asset category | 48.00% | ||
Indianapolis Power And Light Company | Fixed Income [Member] | Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | $ 1,578 | ||
Indianapolis Power And Light Company | Fixed Income [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | $ 404,713 | ||
Indianapolis Power And Light Company | Domestic Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | $ 214,369 | ||
Percentage by asset category | 28.00% | ||
Indianapolis Power And Light Company | Domestic Equity Securities [Member] | Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | $ 2,744 | ||
Indianapolis Power And Light Company | Domestic Equity Securities [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | 211,625 | ||
Indianapolis Power And Light Company | Foreign Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | $ 397,938 | ||
Percentage by asset category | 52.00% | ||
Indianapolis Power And Light Company | Foreign Equity Securities [Member] | Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | $ 1,664 | ||
Indianapolis Power And Light Company | Foreign Equity Securities [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of benefit plan assets | $ 396,274 |
Benefit Plans (Schedule Of Expe
Benefit Plans (Schedule Of Expected Benefit Payments) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Entity Information [Line Items] | |
2016 | $ 41,552 |
2017 | 42,715 |
2018 | 43,371 |
2019 | 43,827 |
2020 | 44,467 |
2021 through 2025 (in total) | 224,933 |
Indianapolis Power And Light Company | |
Entity Information [Line Items] | |
2016 | 41,552 |
2017 | 42,715 |
2018 | 43,371 |
2019 | 43,827 |
2020 | 44,467 |
2021 through 2025 (in total) | $ 224,933 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) $ in Millions | 1 Months Ended | 12 Months Ended | |
Oct. 31, 2009coal_fired_electric_generating_facility | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Entity Information [Line Items] | |||
Total Legal Loss Contingencies Accrued | $ | $ 13.4 | $ 2.6 | |
Indianapolis Power And Light Company | |||
Entity Information [Line Items] | |||
Number of facilities with violations of Federal Clean Air Act | coal_fired_electric_generating_facility | 3 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | ||||
Self-insured retention per occurrence | $ 5 | |||
Insurance expense | 5.6 | $ 4.3 | $ 3.1 | |
Prepaid insurance | 2.3 | 2 | ||
Health coverage expense | 21 | 20.2 | 21.5 | |
Income taxes receivable | 24.4 | 23.7 | ||
Deferred Compensation Arrangement with Individual, Compensation Expense | 0.3 | 0.3 | 0.5 | |
Related Party Transactions, Total Purchases from related party over the life of project | 474.9 | |||
Billings from related party | 6.5 | 3 | $ 5.7 | |
Service Company [Member] | ||||
Related Party Transaction [Line Items] | ||||
Costs incurred by related party | 55.7 | 42 | 44.5 | |
Prepaid balance to related party | 4.5 | 8.4 | ||
Ipalco Enterprises, Inc. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Costs incurred by related party | 10.6 | 9.7 | 10.1 | |
Indianapolis Power And Light Company | ||||
Related Party Transaction [Line Items] | ||||
Self-insured retention per occurrence | 5 | |||
Insurance expense | 5.6 | 4.3 | 3.1 | |
Prepaid insurance | 2.3 | 2 | ||
Health coverage expense | 21 | 20.2 | 21.5 | |
Income taxes receivable | 12.5 | 23.1 | ||
Deferred Compensation Arrangement with Individual, Compensation Expense | 0.3 | 0.3 | 0.5 | |
Costs incurred by related party | 10.6 | 9.7 | 10.1 | |
Prepaid balance to related party | 4.5 | |||
Related Party Transactions, Total Purchases from related party over the life of project | 474.9 | |||
Billings from related party | 6.5 | 3 | 5.7 | |
Loans to Parent, net of repayments | 6.1 | |||
Loans to Parent, net of repayments | 6.1 | |||
Indianapolis Power And Light Company | Service Company [Member] | ||||
Related Party Transaction [Line Items] | ||||
Costs incurred by related party | $ 55.5 | $ 41.8 | $ 44.1 |
Business Segment Information (D
Business Segment Information (Details) | 12 Months Ended |
Dec. 31, 2020segment | |
Indianapolis Power And Light Company | |
Debt Instrument [Line Items] | |
Reportable segments | 1 |
Business Segment Information (S
Business Segment Information (Summary Of Company's Reporting Segments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
REVENUES | $ 1,352,985 | $ 1,481,643 | $ 1,450,505 |
Depreciation and amortization | 246,896 | 240,314 | 232,332 |
Interest Expense | 129,493 | 121,771 | 95,509 |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 138,559 | 167,921 | 147,474 |
Property, Plant and Equipment, Additions | 235,736 | 219,242 | 235,764 |
Tax benefit | 28,592 | 35,528 | 13,449 |
Net income | 109,967 | 132,393 | 134,025 |
TOTAL ASSETS | 4,969,919 | 4,928,669 | 4,862,053 |
Accruals for capital expenditures | 54,360 | 35,471 | 47,553 |
Financed Capital Expenditures | 0 | 5,600 | 11,400 |
Electric [Member] | |||
Segment Reporting Information [Line Items] | |||
REVENUES | 1,352,985 | 1,481,643 | 1,450,505 |
Depreciation and amortization | 246,896 | 240,314 | 232,332 |
Interest Expense | 87,281 | 89,014 | 64,472 |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 184,174 | 200,707 | 178,953 |
Property, Plant and Equipment, Additions | 219,242 | 235,764 | |
TOTAL ASSETS | 4,952,408 | 4,918,408 | 4,851,712 |
Other Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 0 | 0 | 0 |
Interest Expense | 42,212 | 32,757 | 31,037 |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | (45,615) | (32,786) | (31,479) |
Property, Plant and Equipment, Additions | 0 | 0 | 0 |
TOTAL ASSETS | $ 17,511 | $ 10,261 | $ 10,341 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 1,326,600 | $ 1,455,300 | $ 1,440,700 | |
REVENUES | 1,352,985 | 1,481,643 | 1,450,505 | |
Contract with Customer, Asset, before Allowance for Credit Loss | 163,800 | $ 155,000 | ||
Contract with Customer, Liability | 500 | |||
Contract with Customer, Liability, Revenue Recognized | 1,300 | |||
Contract with Customer, Liability | 500 | |||
Contract with Customer, Liability, Revenue Recognized | 1,300 | |||
Retail Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,269,319 | 1,375,533 | 1,391,871 | |
Other non-606 revenue | 24,781 | 23,841 | 4,594 | |
Retail Revenue [Member] | Utility | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 14,402 | 14,136 | 10,427 | |
Retail Revenue [Member] | Residential Revenue | Utility | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 566,668 | 589,719 | 588,031 | |
Retail Revenue [Member] | Small Commercial and Industrial | Utility | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 194,904 | 215,878 | 217,896 | |
Retail Revenue [Member] | Large Commercial and Industrial | Utility | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 484,230 | 548,551 | 565,720 | |
Retail Revenue [Member] | Public Lighting | Utility | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 9,115 | 7,249 | 9,797 | |
Wholesale Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 46,482 | 68,474 | 38,789 | |
Miscellaneous revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 10,794 | 11,335 | 10,057 | |
Other non-606 revenue | 1,609 | 2,460 | 5,194 | |
Electricity [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
REVENUES | 1,352,985 | 1,481,643 | 1,450,505 | |
Indianapolis Power And Light Company | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,326,600 | 1,455,300 | 1,440,700 | |
REVENUES | 1,352,985 | 1,481,643 | 1,450,505 | |
Contract with Customer, Asset, before Allowance for Credit Loss | 163,800 | $ 155,000 | ||
Contract with Customer, Liability | 500 | |||
Contract with Customer, Liability, Revenue Recognized | 1,300 | |||
Contract with Customer, Liability | 500 | |||
Contract with Customer, Liability, Revenue Recognized | 1,300 | |||
Indianapolis Power And Light Company | Retail Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,269,319 | 1,375,533 | 1,391,871 | |
Other non-606 revenue | 24,781 | 23,841 | 4,594 | |
Indianapolis Power And Light Company | Retail Revenue [Member] | Utility | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 14,402 | 14,136 | 10,427 | |
Indianapolis Power And Light Company | Retail Revenue [Member] | Residential Revenue | Utility | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 566,668 | 589,719 | 588,031 | |
Indianapolis Power And Light Company | Retail Revenue [Member] | Small Commercial and Industrial | Utility | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 194,904 | 215,878 | 217,896 | |
Indianapolis Power And Light Company | Retail Revenue [Member] | Large Commercial and Industrial | Utility | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 484,230 | 548,551 | 565,720 | |
Indianapolis Power And Light Company | Retail Revenue [Member] | Public Lighting | Utility | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 9,115 | 7,249 | 9,797 | |
Indianapolis Power And Light Company | Wholesale Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 46,482 | 68,474 | 38,789 | |
Indianapolis Power And Light Company | Miscellaneous revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 10,794 | 11,335 | 10,057 | |
Other non-606 revenue | 1,609 | 2,460 | 5,194 | |
Indianapolis Power And Light Company | Electricity [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
REVENUES | $ 1,352,985 | $ 1,481,643 | $ 1,450,505 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Lessee, Lease, Description [Line Items] | ||
Property Subject to or Available for Operating Lease, Accumulated Depreciation | $ 800 | $ 700 |
Property Subject to or Available for Operating Lease, Gross | 4,300 | 4,300 |
Lessor, Operating Lease, Payment to be Received, Year One | 886 | |
Lessor, Operating Lease, Payment to be Received, Year Two | 906 | |
Lessor, Operating Lease, Payment to be Received, Year Three | 906 | |
Lessor, Operating Lease, Payment to be Received, Year Four | 786 | |
Lessor, Operating Lease, Payment to be Received, Year Five | 544 | |
Lessor, Operating Lease, Payment to be Received, after Year Five | $ 2,074 | |
Future Minimum Lease Receipts | The following table shows the future minimum lease receipts through 2025 and thereafter (in thousands): Operating Leases 2021 $ 886 2022 906 2023 906 2024 786 2025 544 Thereafter 2,074 Total $ 6,102 | |
Operating Lease, Lease Income | $ 900 | 1,000 |
Lessor, Operating Lease, Payments to be Received | 6,102 | |
Subsidiaries [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Property Subject to or Available for Operating Lease, Accumulated Depreciation | 800 | 700 |
Property Subject to or Available for Operating Lease, Gross | 4,300 | 4,300 |
Lessor, Operating Lease, Payment to be Received, Year One | 886 | |
Lessor, Operating Lease, Payment to be Received, Year Two | 906 | |
Lessor, Operating Lease, Payment to be Received, Year Three | 906 | |
Lessor, Operating Lease, Payment to be Received, Year Four | 786 | |
Lessor, Operating Lease, Payment to be Received, Year Five | 544 | |
Lessor, Operating Lease, Payment to be Received, after Year Five | $ 2,074 | |
Future Minimum Lease Receipts | The following table shows the future minimum lease receipts through 2025 and thereafter (in thousands): Operating Leases 2021 $ 886 2022 906 2023 906 2024 786 2025 544 Thereafter 2,074 Total $ 6,102 | |
Operating Lease, Lease Income | $ 900 | $ 1,000 |
Lessor, Operating Lease, Payments to be Received | $ 6,102 |
Risks and Uncertainties (Detail
Risks and Uncertainties (Details) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2020 | |
Unusual Risk or Uncertainty [Line Items] | |||||
Unusual Risks and Uncertainties | As the economic impact of the COVID-19 pandemic started to materialize in Indiana in the second half of March 2020 and continued for the duration of 2020, the COVID-19 pandemic primarily impacted our retail sales demand as shown by the changes in weather-normalized volumes of kWh sold compared to the weather-normalized volumes for the same periods in 2019: Customer class For the three months ended For the year ended March 31, 2020 June 30, 2020 September 30, 2020 December 31, 2020 December 31, 2020 Residential 1.6 % 6.6 % 3.9 % 2.4 % 3.4 % Small commercial and industrial (1.8) % (10.3) % (4.2) % (5.3) % (5.2) % Large commercial and industrial (2.8) % (11.0) % (7.9) % (5.7) % (6.9) % | ||||
Subsidiaries [Member] | |||||
Unusual Risk or Uncertainty [Line Items] | |||||
Unusual Risks and Uncertainties | As the economic impact of the COVID-19 pandemic started to materialize in Indiana in the second half of March 2020 and continued for the duration of 2020, the COVID-19 pandemic primarily impacted our retail sales demand as shown by the changes in weather-normalized volumes of kWh sold compared to the weather-normalized volumes for the same periods in 2019: Customer class For the three months ended For the year ended March 31, 2020 June 30, 2020 September 30, 2020 December 31, 2020 December 31, 2020 Residential 1.6 % 6.6 % 3.9 % 2.4 % 3.4 % Small commercial and industrial (1.8) % (10.3) % (4.2) % (5.3) % (5.2) % Large commercial and industrial (2.8) % (11.0) % (7.9) % (5.7) % (6.9) % | ||||
Residential | |||||
Unusual Risk or Uncertainty [Line Items] | |||||
Percentage Increase/Decrease in weather-normalized volumes of kWh sold | 2.40% | 3.90% | 6.60% | 1.60% | 3.40% |
Residential | Subsidiaries [Member] | |||||
Unusual Risk or Uncertainty [Line Items] | |||||
Percentage Increase/Decrease in weather-normalized volumes of kWh sold | 2.40% | 3.90% | 6.60% | 1.60% | 3.40% |
Small Commercial and Industrial | |||||
Unusual Risk or Uncertainty [Line Items] | |||||
Percentage Increase/Decrease in weather-normalized volumes of kWh sold | (5.30%) | (4.20%) | (10.30%) | (1.80%) | (5.20%) |
Small Commercial and Industrial | Subsidiaries [Member] | |||||
Unusual Risk or Uncertainty [Line Items] | |||||
Percentage Increase/Decrease in weather-normalized volumes of kWh sold | (5.30%) | (4.20%) | (10.30%) | (1.80%) | (5.20%) |
Large Commercial and Industrial | |||||
Unusual Risk or Uncertainty [Line Items] | |||||
Percentage Increase/Decrease in weather-normalized volumes of kWh sold | (5.70%) | (7.90%) | (11.00%) | (2.80%) | (6.90%) |
Large Commercial and Industrial | Subsidiaries [Member] | |||||
Unusual Risk or Uncertainty [Line Items] | |||||
Percentage Increase/Decrease in weather-normalized volumes of kWh sold | (5.70%) | (7.90%) | (11.00%) | (2.80%) | (6.90%) |
Schedule I - Condensed Financ_2
Schedule I - Condensed Financial Information Of Registrant (Narrative) (Details) MWh in Thousands, $ in Thousands | Dec. 31, 2020USD ($)MWh |
Condensed Financial Statements, Captions [Line Items] | |
Ownership percentage by parent | 82.35% |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Purchase of Derivative Instruments Interest Rate Swap | $ 400,000 |
Sale of Derivative Instruments Interest Rate Swap | 0 |
Derivative, Notional Amount, Purchase (Sales), Net | 400,000 |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Ipalco Enterprises, Inc. [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Purchase of Derivative Instruments Interest Rate Swap | 400,000 |
Sale of Derivative Instruments Interest Rate Swap | 0 |
Derivative, Notional Amount, Purchase (Sales), Net | $ 400,000 |
FTR [Member] | Not Designated as Hedging Instrument [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Purchase of Units Derivative Instruments Financial Transmission Rights | MWh | 3,168 |
Sale of Units Derivative Instruments Financial Transmission Rights | MWh | 0 |
Derivative, Nonmonetary Notional Amount, Purchase (Sales), Net | MWh | 3,168 |
Schedule I - Condensed Financ_3
Schedule I - Condensed Financial Information Of Registrant (Unconsolidated Balance Sheet) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | $ 20,502 | $ 48,152 | ||
Total current assets | 374,977 | 371,543 | ||
Other Assets, Noncurrent | 46,716 | 22,082 | ||
TOTAL ASSETS | 4,969,919 | 4,928,669 | $ 4,862,053 | |
Short-term debt | 169,907 | 559,199 | ||
Accounts payable | 127,089 | 128,521 | ||
Accumulated deficit | (24,558) | (24,558) | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 520,988 | 546,476 | 573,266 | $ 572,276 |
Total common shareholder's deficit | 580,772 | 606,260 | ||
Long-term debt | 2,556,278 | 2,092,430 | ||
Derivative Liability, Noncurrent | 63,215 | 0 | ||
Accrued interest | 31,733 | 35,334 | ||
Derivative Liability, Current | 0 | 26,560 | ||
Total current liabilities | 432,767 | 882,215 | ||
Total non-current liabilities | 3,956,380 | 3,440,194 | ||
Liabilities | 4,389,147 | 4,322,409 | ||
Additional Paid in Capital | 588,966 | 590,784 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (43,420) | (19,750) | 0 | 0 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 4,969,919 | 4,928,669 | ||
Restricted Cash and Cash Equivalents | 6,120 | 400 | ||
Income Taxes Receivable, Current | 24,384 | 23,670 | ||
Other Assets, Current | 17,842 | 17,264 | ||
Parent Company [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 302 | 3,709 | ||
Total current assets | 25,787 | 18,750 | ||
Investment in subsidiaries | 1,426,739 | 1,427,141 | ||
Deferred tax asset - long term | 14,289 | 6,764 | ||
Other Assets | 3,194 | 2,843 | ||
Other Assets, Noncurrent | 1,444,222 | 1,436,748 | ||
TOTAL ASSETS | 1,470,009 | 1,455,498 | ||
Short-term debt | 0 | 469,313 | ||
Loans Payable to Subsidiary | 6,110 | 0 | ||
Accounts payable | 365 | 292 | ||
Accumulated deficit | (24,558) | (24,558) | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 520,988 | 546,476 | 573,266 | 572,276 |
Long-term debt | 870,775 | 401,415 | ||
Derivative Liability, Noncurrent | 63,215 | 0 | ||
Accrued interest | 8,556 | 11,442 | ||
Derivative Liability, Current | 0 | 26,560 | ||
Total current liabilities | 15,031 | 507,607 | ||
Total non-current liabilities | 933,990 | 401,415 | ||
Liabilities | 949,021 | 909,022 | ||
Additional Paid in Capital | 588,966 | 590,784 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (43,420) | (19,750) | $ 0 | $ 0 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 1,470,009 | 1,455,498 | ||
Restricted Cash and Cash Equivalents | 6,115 | 0 | ||
Income Taxes Receivable, Current | 11,862 | 541 | ||
Other Assets, Current | $ 7,508 | $ 14,500 |
Schedule I - Condensed Financ_4
Schedule I - Condensed Financial Information Of Registrant (Unconsolidated Statements Of Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Condensed Financial Statements, Captions [Line Items] | |||
Interest Expense | $ (129,493) | $ (121,771) | $ (95,509) |
Loss on early extinguishment of debt | (2,424) | 0 | 0 |
Other income / (expense), net | 3,370 | (10,546) | (1,852) |
Total other income / (expense), net | (123,973) | (128,831) | (88,884) |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 138,559 | 167,921 | 147,474 |
Less: income tax expense | 28,592 | 35,528 | 13,449 |
Net income | 109,967 | 132,393 | 134,025 |
Parent Company [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Equity in earnings of subsidiaries | 140,030 | 154,078 | 154,150 |
Interest Expense | (42,212) | (32,761) | (31,038) |
Loss on early extinguishment of debt | (2,415) | 0 | 0 |
Other income / (expense), net | 73 | (46) | (443) |
Total other income / (expense), net | 95,476 | 121,271 | 122,669 |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 95,476 | 121,271 | 122,669 |
Less: income tax expense | (11,278) | (7,909) | (8,143) |
Net income | $ 106,754 | $ 129,180 | $ 130,812 |
Schedule I - Condensed Financ_5
Schedule I - Condensed Financial Information Of Registrant (Unconsolidated Statements Of Cash Flows) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Interest Paid, Excluding Capitalized Interest, Operating Activities | $ 122,938 | $ 117,457 | $ 90,975 | |
Net income | 109,967 | 132,393 | 134,025 | |
Amortization of debt issuance costs and discounts | (3,942) | (4,109) | (3,975) | |
Increase (Decrease) in Accounts Payable | (20,322) | 3,047 | 3,675 | |
Accrued and other current liabilities | (8,214) | 4,413 | (10,532) | |
Other - net | (340) | (7,357) | 1,089 | |
Net cash provided by operating activities | 295,425 | 397,815 | 381,012 | |
Payments for (Proceeds from) Other Investing Activities | 118 | 278 | 1,053 | |
Net cash used in investing activities | (275,769) | (237,448) | (253,952) | |
Long-term borrowings, net of discount | 564,568 | 0 | 169,936 | |
Retirement of long-term debt | (562,135) | 0 | 0 | |
Distributions to shareholders | (108,739) | (136,426) | (130,179) | |
Other - net | 117 | 152 | 190 | |
Net cash used in financing activities | (41,586) | (145,414) | (124,142) | |
Income Taxes Paid, Net | 27,000 | 29,600 | 28,275 | |
Accrued taxes payable/receivable | 6,695 | (15,698) | 3,180 | |
Accrued interest | (3,601) | 544 | 458 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 26,622 | 48,552 | 33,599 | $ 30,681 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | (21,930) | 14,953 | 2,918 | |
Parent Company [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Interest Paid, Excluding Capitalized Interest, Operating Activities | 38,069 | 28,911 | 29,665 | |
Net income | 106,754 | 129,180 | 130,812 | |
Equity in earnings of subsidiaries | (140,030) | (154,078) | (154,150) | |
Cash dividends received from subsidiary companies | 147,600 | 159,000 | 142,250 | |
Amortization of debt issuance costs and discounts | (1,607) | (1,847) | (1,964) | |
Deferred income taxes - net | (224) | 157 | (89) | |
Charges related to early extinguishment of debt | 2,415 | 0 | 0 | |
Increase (Decrease) in Accounts Payable | 299 | 231 | (405) | |
Accrued and other current liabilities | 0 | (3) | (876) | |
Other - net | 5,005 | (623) | (1,838) | |
Net cash provided by operating activities | 109,026 | 135,448 | 117,300 | |
Investment in subsidiaries | 0 | 0 | (65,000) | |
Payments for (Proceeds from) Other Investing Activities | 0 | 278 | 1,053 | |
Net cash used in investing activities | 0 | 278 | (63,947) | |
Long-term borrowings, net of discount | 474,568 | 0 | 65,000 | |
Retirement of long-term debt | (472,135) | 0 | 0 | |
Distributions to shareholders | (108,739) | (136,426) | (130,179) | |
Other - net | 6,122 | 0 | 148 | |
Net cash used in financing activities | (106,318) | (136,426) | (65,327) | |
Income Taxes Paid, Net | 27,000 | 29,600 | 28,275 | |
Accrued taxes payable/receivable | (11,317) | (261) | 0 | |
Accrued interest | (3,083) | (2) | (368) | |
Repayments of Loans to Subsidiary | (20,000) | 0 | 0 | |
Loans from Subsidiary | 26,110 | 0 | 0 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 6,417 | 3,709 | 4,409 | $ 16,383 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | $ 2,708 | $ (700) | $ (11,974) |
Schedule I - Condensed Financ_6
Schedule I - Condensed Financial Information Of Registrant (Unconsolidated Statements Of Common Shareholders' Equity (Deficit)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Condensed Financial Statements, Captions [Line Items] | |||
Other Comprehensive Income (Loss), Net of Tax | $ (23,670) | $ (19,750) | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | 546,476 | 573,266 | 572,276 |
Net income applicable to common stock | 106,754 | 129,180 | 130,812 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 83,084 | 109,430 | 130,812 |
Distributions to AES | (108,739) | (136,426) | (130,179) |
Other | 167 | 206 | 357 |
Ending Balance | 520,988 | 546,476 | 573,266 |
Parent Company [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Other Comprehensive Income (Loss), Net of Tax | (23,670) | (19,750) | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | 546,476 | 573,266 | 572,276 |
Net income applicable to common stock | 106,754 | 129,180 | 130,812 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 83,084 | 109,430 | 130,812 |
Distributions to AES | 108,739 | 136,426 | 130,179 |
Other | 167 | 206 | 357 |
Ending Balance | 520,988 | 546,476 | 573,266 |
Paid In Capital [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | 590,784 | 597,824 | 597,467 |
Return of Capital | (1,985) | (7,246) | 0 |
Other | 167 | 206 | 357 |
Ending Balance | 588,966 | 590,784 | 597,824 |
Paid In Capital [Member] | Parent Company [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | 590,784 | 597,824 | 597,467 |
Return of Capital | (1,985) | (7,246) | 0 |
Other | 167 | 206 | 357 |
Ending Balance | 588,966 | 590,784 | 597,824 |
AOCI Attributable to Parent [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Other Comprehensive Income (Loss), Net of Tax | (23,670) | (19,750) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | (19,750) | ||
Ending Balance | (43,420) | (19,750) | |
AOCI Attributable to Parent [Member] | Parent Company [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Other Comprehensive Income (Loss), Net of Tax | (23,670) | (19,750) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | (19,750) | ||
Ending Balance | (43,420) | (19,750) | |
Accumulated Deficit [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | (24,558) | (24,558) | (25,191) |
Net income applicable to common stock | 106,754 | 129,180 | 130,812 |
Distributions to AES | (106,754) | (129,180) | (130,179) |
Ending Balance | (24,558) | (24,558) | (24,558) |
Accumulated Deficit [Member] | Parent Company [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | (24,558) | (24,558) | (25,191) |
Net income applicable to common stock | 106,754 | 129,180 | 130,812 |
Distributions to AES | 106,754 | 129,180 | 130,179 |
Ending Balance | $ (24,558) | $ (24,558) | $ (24,558) |
Schedule I - Condensed Financ_7
Schedule I - Condensed Financial Information Of Registrant (Long-Term Indebtedness) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Apr. 14, 2020 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Unamortized discount - net | $ (6,600) | $ (6,500) | ||
Debt Issuance Costs, Net | (26,000) | (20,700) | ||
Long-term debt | 2,651,185 | 2,651,629 | ||
Current portion of long-term debt | 94,907 | 559,199 | ||
Net Long-term Debt | 2,556,278 | 2,092,430 | ||
Loss on early extinguishment of debt | 2,424 | 0 | $ 0 | |
Parent Company [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Unamortized discount - net | (625) | (313) | ||
Debt Issuance Costs, Net | (8,600) | (3,959) | ||
Long-term debt | 870,775 | 870,728 | ||
Current portion of long-term debt | 0 | 469,313 | ||
Net Long-term Debt | 870,775 | 401,415 | ||
Loss on early extinguishment of debt | 2,415 | 0 | $ 0 | |
Parent Company [Member] | Bank Term Loan Maturing July 2020 [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Long-term debt | 0 | 65,000 | $ 65,000 | |
Parent Company [Member] | 3.45% Senior Secured Notes [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Long-term debt | $ 0 | 405,000 | ||
Debt, stated interest rate | 3.45% | |||
Parent Company [Member] | Three Point Seven Zero Percent Senior Secured Notes [Domain] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Long-term debt | $ 405,000 | 405,000 | ||
Debt, stated interest rate | 3.70% | |||
Parent Company [Member] | Four Point Two Five Percent Senior Secured Notes | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Long-term debt | $ 475,000 | $ 0 | ||
Debt, stated interest rate | 4.25% |
Schedule I - Condensed Financ_8
Schedule I - Condensed Financial Information Of Registrant Schedule I - Condensed Financial Information Of Registrant (Unconsolidated Statements of Comprehensive Income/(Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Condensed Statement of Income Captions [Line Items] | |||
Net Income (Loss) Available to Common Stockholders, Basic | $ 106,754 | $ 129,180 | $ 130,812 |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | (27,779) | (19,750) | 0 |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | (23,670) | (19,750) | 0 |
Other Comprehensive Income (Loss), Net of Tax | (23,670) | (19,750) | 0 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 83,084 | 109,430 | 130,812 |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | 8,876 | 6,810 | 0 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax | 1,313 | 0 | 0 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 4,109 | 0 | 0 |
Parent Company [Member] | |||
Condensed Statement of Income Captions [Line Items] | |||
Net Income (Loss) Available to Common Stockholders, Basic | 106,754 | 129,180 | 130,812 |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | (27,779) | (19,750) | 0 |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | (23,670) | (19,750) | 0 |
Other Comprehensive Income (Loss), Net of Tax | (23,670) | (19,750) | 0 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 83,084 | 109,430 | 130,812 |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | 8,876 | 6,810 | 0 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax | 1,313 | 0 | 0 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | $ 4,109 | $ 0 | $ 0 |
Schedule I - Condensed Financ_9
Schedule I - Condensed Financial Information Of Registrant Schedule I - Condensed Financial Information Of Registrant (Derivative Instruments and Hedging Activities) (Details) MWh in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($)MWh | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Number of Interest Rate Swaps | 3 | |||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | $ (27,779,000) | $ (19,750,000) | $ 0 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (43,420,000) | (19,750,000) | 0 | $ 0 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (27,779,000) | (19,750,000) | 0 | |
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent | 4,109,000 | 0 | 0 | |
Collateral in a broker margin account which offsets our loss positions on the interest rate hedges. | 6,100,000 | |||
Collateral in a broker margin account which offsets our loss positions on the interest rate hedges. | 6,100,000 | |||
Interest Rate Contract [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax | (43,420,000) | (19,750,000) | 0 | |
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net | $ (5,375) | |||
Maximum Length of Time Hedged in Cash Flow Hedge | 45 months | |||
Not Designated as Hedging Instrument [Member] | FTR [Member] | ||||
Purchase of Units Derivative Instruments Financial Transmission Rights | MWh | 3,168 | |||
Sale of Units Derivative Instruments Financial Transmission Rights | MWh | 0 | |||
Derivative, Nonmonetary Notional Amount, Purchase (Sales), Net | MWh | 3,168 | |||
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | ||||
Purchase of Derivative Instruments Interest Rate Swap | $ 400,000,000 | |||
Sale of Derivative Instruments Interest Rate Swap | 0 | |||
Derivative, Notional Amount, Purchase (Sales), Net | 400,000,000 | |||
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Derivative Liability, Current | ||||
Derivative Liability, Fair Value, Gross Liability | 0 | 26,560,000,000 | ||
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Other Current Assets [Member] | ||||
Derivative Liability, Fair Value, Gross Liability | $ 63,215,000,000 | 0 | ||
Parent Company [Member] | ||||
Number of Interest Rate Swaps | 3 | |||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | $ (27,779,000) | (19,750,000) | 0 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (43,420,000) | (19,750,000) | 0 | $ 0 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (27,779,000) | (19,750,000) | 0 | |
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent | 4,109,000 | 0 | 0 | |
Collateral in a broker margin account which offsets our loss positions on the interest rate hedges. | 6,100,000 | |||
Collateral in a broker margin account which offsets our loss positions on the interest rate hedges. | 6,100,000 | |||
Parent Company [Member] | Interest Rate Contract [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax | (43,420,000) | (19,750,000) | $ 0 | |
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net | $ (5,375) | |||
Maximum Length of Time Hedged in Cash Flow Hedge | 45 months | |||
Parent Company [Member] | Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | ||||
Purchase of Derivative Instruments Interest Rate Swap | $ 400,000,000 | |||
Sale of Derivative Instruments Interest Rate Swap | 0 | |||
Derivative, Notional Amount, Purchase (Sales), Net | 400,000,000 | |||
Parent Company [Member] | Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Derivative Liability, Current | ||||
Derivative Liability, Fair Value, Gross Liability | 0 | 26,560,000,000 | ||
Parent Company [Member] | Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Other Current Assets [Member] | ||||
Derivative Liability, Fair Value, Gross Liability | $ 63,215,000,000 | $ 0 |
Schedule I - Condensed Finan_10
Schedule I - Condensed Financial Information Of Registrant (Fair Value) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Condensed Financial Information Disclosure [Abstract] | ||
Total financial assets measured at fair value | $ 3,768 | $ 3,743 |
Total financial assets measured at fair value | 3,768 | 3,743 |
Face Value | 2,758,800 | 2,678,800 |
Fair Value | 3,370,588 | 3,031,140 |
Debt Issuance Costs, Net | 26,000 | 20,700 |
Debt Instrument, Unamortized Discount | 6,600 | 6,500 |
Fixed Rate [Member] | ||
Face Value | 2,683,800 | 2,523,800 |
Fair Value | 3,295,588 | 2,876,140 |
Variable Rate [Member] | ||
Face Value | 75,000 | 155,000 |
Fair Value | 75,000 | 155,000 |
Parent Company [Member] | ||
Condensed Financial Information Disclosure [Abstract] | ||
Total financial assets measured at fair value | 3,225 | 2,879 |
Investments, Fair Value Disclosure | 3,225 | 2,879 |
Total financial assets measured at fair value | 3,225 | 2,879 |
Other derivative liabilities | 63,215 | 26,560 |
Total financial liabilities measured at fair value | 63,215 | 26,560 |
Face Value | 880,000 | 875,000 |
Fair Value | 992,615 | 891,382 |
Debt Issuance Costs, Net | 8,600 | 3,959 |
Debt Instrument, Unamortized Discount | 625 | 313 |
Parent Company [Member] | Fixed Rate [Member] | ||
Face Value | 880,000 | 810,000 |
Fair Value | 992,615 | 826,382 |
Parent Company [Member] | Variable Rate [Member] | ||
Face Value | 0 | 65,000 |
Fair Value | 0 | 65,000 |
Fair Value, Inputs, Level 1 [Member] | ||
Condensed Financial Information Disclosure [Abstract] | ||
Total financial assets measured at fair value | 16 | 25 |
Total financial assets measured at fair value | 16 | 25 |
Fair Value, Inputs, Level 1 [Member] | Parent Company [Member] | ||
Condensed Financial Information Disclosure [Abstract] | ||
Total financial assets measured at fair value | 16 | 25 |
Investments, Fair Value Disclosure | 16 | 25 |
Total financial assets measured at fair value | 16 | 25 |
Other derivative liabilities | 0 | 0 |
Total financial liabilities measured at fair value | 0 | 0 |
Significant Observable Inputs (Level 2) [Member] | ||
Condensed Financial Information Disclosure [Abstract] | ||
Total financial assets measured at fair value | 3,209 | 2,854 |
Total financial assets measured at fair value | 3,209 | 2,854 |
Significant Observable Inputs (Level 2) [Member] | Parent Company [Member] | ||
Condensed Financial Information Disclosure [Abstract] | ||
Total financial assets measured at fair value | 3,209 | 2,854 |
Investments, Fair Value Disclosure | 3,209 | 2,854 |
Total financial assets measured at fair value | 3,209 | 2,854 |
Other derivative liabilities | 63,215 | 26,560 |
Total financial liabilities measured at fair value | 63,215 | 26,560 |
Unobservable Inputs (Level 3) [Member] | ||
Condensed Financial Information Disclosure [Abstract] | ||
Total financial assets measured at fair value | 543 | 864 |
Total financial assets measured at fair value | 543 | 864 |
Unobservable Inputs (Level 3) [Member] | Parent Company [Member] | ||
Condensed Financial Information Disclosure [Abstract] | ||
Total financial assets measured at fair value | 0 | 0 |
Investments, Fair Value Disclosure | 0 | 0 |
Total financial assets measured at fair value | 0 | 0 |
Other derivative liabilities | 0 | 0 |
Total financial liabilities measured at fair value | 0 | 0 |
Money Market Funds [Member] | Parent Company [Member] | ||
Investments, Fair Value Disclosure | 16 | 25 |
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | Parent Company [Member] | ||
Investments, Fair Value Disclosure | 16 | 25 |
Money Market Funds [Member] | Significant Observable Inputs (Level 2) [Member] | Parent Company [Member] | ||
Investments, Fair Value Disclosure | 0 | 0 |
Money Market Funds [Member] | Unobservable Inputs (Level 3) [Member] | Parent Company [Member] | ||
Investments, Fair Value Disclosure | 0 | 0 |
Mutual Fund [Member] | Parent Company [Member] | ||
Investments, Fair Value Disclosure | 3,209 | 2,854 |
Mutual Fund [Member] | Fair Value, Inputs, Level 1 [Member] | Parent Company [Member] | ||
Investments, Fair Value Disclosure | 0 | 0 |
Mutual Fund [Member] | Significant Observable Inputs (Level 2) [Member] | Parent Company [Member] | ||
Investments, Fair Value Disclosure | 3,209 | 2,854 |
Mutual Fund [Member] | Unobservable Inputs (Level 3) [Member] | Parent Company [Member] | ||
Investments, Fair Value Disclosure | $ 0 | $ 0 |
Schedule II - Valuation And Q_2
Schedule II - Valuation And Qualifying Accounts And Reserves (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
SEC Schedule, 12-09, Allowance, Credit Loss [Member] | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | $ 2,053 | $ 2,821 | $ 2,830 |
Charged to Income | 5,861 | 4,760 | 6,008 |
Net Write-offs | 3,627 | 5,528 | 6,017 |
Balance at End of Period | 3,155 | 2,053 | 2,821 |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Additions, Charge to Other Account | (1,132) | 0 | 0 |
SEC Schedule, 12-09, Reserve, Inventory | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | 6,204 | 0 | |
Charged to Income | 0 | 6,204 | |
Net Write-offs | 71 | 0 | |
Balance at End of Period | 6,133 | 6,204 | 0 |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Additions, Charge to Other Account | 0 | 0 | |
Indianapolis Power And Light Company | SEC Schedule, 12-09, Allowance, Credit Loss [Member] | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | 2,053 | 2,821 | 2,830 |
Charged to Income | 5,861 | 4,760 | 6,008 |
Net Write-offs | 3,627 | 5,528 | 6,017 |
Balance at End of Period | 3,155 | 2,053 | 2,821 |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Additions, Charge to Other Account | (1,132) | 0 | 0 |
Indianapolis Power And Light Company | SEC Schedule, 12-09, Reserve, Inventory | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | 6,204 | 0 | |
Charged to Income | 6,204 | ||
Net Write-offs | 71 | 0 | |
Balance at End of Period | 6,133 | 6,204 | $ 0 |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Additions, Charge to Other Account | $ 0 |