Document And Entity Information
Document And Entity Information | 6 Months Ended |
Jun. 30, 2019shares | |
Document And Entity Information [Abstract] | |
Document Type | 10-Q |
Document Period End Date | Jun. 30, 2019 |
Entity Registrant Name | CHUGACH ELECTRIC ASSOCIATION INC |
Entity Current Reporting Status | No |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 0 |
Entity Central Index Key | 0000878004 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2019 |
Amendment Flag | false |
Document Fiscal Period Focus | Q2 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Utility plant: | ||
Electric plant in service | $ 1,236,459,969 | $ 1,216,663,092 |
Construction work in progress | 14,170,391 | 17,272,307 |
Total utility plant | 1,250,630,360 | 1,233,935,399 |
Less accumulated depreciation | (545,192,611) | (529,099,451) |
Net utility plant | 705,437,749 | 704,835,948 |
Other property and investments, at cost: | ||
Nonutility property | 76,889 | 76,889 |
Operating lease right-of-use assets | 1,025,106 | 0 |
Investments in associated organizations | 8,155,603 | 8,570,046 |
Special funds | 2,132,485 | 1,890,221 |
Restricted cash equivalents | 108,000 | 108,000 |
Total other property and investments | 11,498,083 | 10,645,156 |
Current assets: | ||
Cash and cash equivalents | 2,199,574 | 6,106,995 |
Special deposits | 54,300 | 54,300 |
Restricted cash equivalents | 1,225,258 | 1,213,974 |
Marketable securities | 0 | 6,316,583 |
Accounts receivable, net | 25,600,024 | 31,165,249 |
Materials and supplies | 16,559,823 | 16,223,477 |
Fuel stock | 10,003,214 | 11,952,086 |
Prepayments | 3,557,760 | 2,227,117 |
Other current assets | 303,381 | 241,279 |
Total current assets | 59,503,334 | 75,501,060 |
Other non-current assets: | ||
Deferred charges, net | 39,288,829 | 37,668,424 |
Total other non-current assets | 39,288,829 | 37,668,424 |
Total assets | 815,727,995 | 828,650,588 |
Equities and margins: | ||
Memberships | 1,761,182 | 1,748,172 |
Patronage capital | 173,370,711 | 177,823,597 |
Other | 15,079,726 | 14,952,925 |
Total equities and margins | 190,211,619 | 194,524,694 |
Long-term obligations, excluding current installments: | ||
Bonds payable | 449,999,997 | 398,416,664 |
Notes payable | 32,376,000 | 33,972,000 |
Less unamortized debt issuance costs | (2,780,509) | (2,425,247) |
Operating lease liabilities | 834,925 | 0 |
Total long-term obligations | 480,430,413 | 429,963,417 |
Current liabilities: | ||
Current installments of long-term obligations | 26,798,849 | 26,608,667 |
Commercial paper | 8,000,000 | 61,000,000 |
Accounts payable | 8,662,054 | 9,538,749 |
Consumer deposits | 4,657,070 | 4,845,611 |
Fuel cost over-recovery | 2,923,764 | 3,388,295 |
Accrued interest | 5,719,982 | 5,671,840 |
Salaries, wages and benefits | 8,170,284 | 7,863,112 |
Fuel | 5,066,918 | 5,844,856 |
Other current liabilities | 9,118,964 | 10,085,556 |
Total current liabilities | 79,117,885 | 134,846,686 |
Other non-current liabilities: | ||
Deferred compensation | 1,573,178 | 1,359,878 |
Other liabilities, non-current | 771,838 | 580,841 |
Deferred liabilities | 752,523 | 764,834 |
Patronage capital payable | 1,931,295 | 3,393,253 |
Cost of removal obligation / asset retirement obligation | 60,939,244 | 63,216,985 |
Total other non-current liabilities | 65,968,078 | 69,315,791 |
Total liabilities, equities and margins | $ 815,727,995 | $ 828,650,588 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Consolidated Statements Of Operations [Abstract] | ||||
Operating revenues | $ 47,540,088 | $ 45,988,583 | $ 103,367,326 | $ 102,045,861 |
Operating expenses: | ||||
Fuel | 12,788,246 | 12,554,088 | 27,526,795 | 31,041,678 |
Production | 4,683,375 | 4,183,286 | 9,542,186 | 8,607,205 |
Purchased power | 4,877,990 | 4,212,015 | 11,771,001 | 8,294,903 |
Transmission | 1,634,714 | 1,741,184 | 4,022,783 | 3,729,188 |
Distribution | 3,867,859 | 3,885,589 | 7,424,478 | 7,621,549 |
Consumer accounts | 1,753,002 | 1,651,942 | 3,466,561 | 3,517,651 |
Administrative, general and other | 6,620,509 | 5,870,304 | 12,946,367 | 11,415,273 |
Depreciation and amortization | 7,724,380 | 7,394,219 | 15,550,749 | 14,737,296 |
Total operating expenses | 43,950,075 | 41,492,627 | 92,250,920 | 88,964,743 |
Interest expense: | ||||
Long-term debt and other | 5,590,422 | 5,501,411 | 11,147,036 | 11,116,146 |
Charged to construction | (84,099) | (67,498) | (185,057) | (124,861) |
Interest expense, net | 5,506,323 | 5,433,913 | 10,961,979 | 10,991,285 |
Net operating margins | (1,916,310) | (937,957) | 154,427 | 2,089,833 |
Nonoperating margins: | ||||
Interest income | 142,663 | 191,113 | 311,815 | 350,696 |
Allowance for funds used during construction | 37,950 | 28,125 | 83,507 | 51,998 |
Capital credits, patronage dividends and other | 18,626 | (108,815) | 118,757 | (192,101) |
Total nonoperating margins | 199,239 | 110,423 | 514,079 | 210,593 |
Assignable margins | $ (1,717,071) | $ (827,534) | $ 668,506 | $ 2,300,426 |
Consolidated Statements Of Chan
Consolidated Statements Of Changes In Equities And Margins - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Balance | $ 194,524,694 | |||
Assignable margins | $ (1,717,071) | $ (827,534) | 668,506 | $ 2,300,426 |
Balance | 190,211,619 | 191,365,198 | 190,211,619 | 191,365,198 |
Memberships [Member] | ||||
Balance | 1,753,742 | 1,724,759 | 1,748,172 | 1,719,154 |
Memberships and donations received | 7,440 | 7,903 | 13,010 | 13,508 |
Balance | 1,761,182 | 1,732,662 | 1,761,182 | 1,732,662 |
Other Equities And Margins [Member] | ||||
Balance | 15,035,783 | 14,650,759 | 14,952,925 | 14,653,253 |
Unclaimed capital credits retired | (4,341) | (10,889) | (5,918) | (13,459) |
Memberships and donations received | 48,284 | 158,605 | 132,719 | 158,681 |
Balance | 15,079,726 | 14,798,475 | 15,079,726 | 14,798,475 |
Patronage Capital [Member] | ||||
Balance | 175,198,092 | 176,056,635 | 177,823,597 | 172,928,887 |
Assignable margins | (1,717,071) | (827,534) | 668,506 | 2,300,426 |
Retirement/net transfer of capital credits | (110,310) | (395,040) | (5,121,392) | (395,252) |
Balance | $ 173,370,711 | $ 174,834,061 | $ 173,370,711 | $ 174,834,061 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flow - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Assignable margins | $ 668,506 | $ 2,300,426 |
Adjustments to reconcile assignable margins to net cash provided by operating activities: | ||
Depreciation and amortization | 15,550,749 | 14,737,296 |
Amortization and depreciation cleared to operating expenses | 3,607,234 | 2,517,243 |
Allowance for funds used during construction | (83,507) | (51,998) |
Write off of inventory, deferred charges and projects | 484,649 | 127,681 |
Other | (112,604) | 208,450 |
(Increase) decrease in assets: | ||
Accounts receivable, net | 4,278,299 | 9,255,648 |
Fuel cost under-recovery | 0 | 3,250,815 |
Materials and supplies | (347,346) | (886,757) |
Fuel stock | 1,948,872 | (2,097,957) |
Prepayments | (1,330,643) | 1,736,547 |
Other assets | (62,101) | 76,595 |
Deferred charges | (4,457,105) | (2,458,074) |
Increase (decrease) in liabilities: | ||
Accounts payable | (428,416) | 1,280,213 |
Consumer deposits | (188,541) | (251,886) |
Fuel cost over-recovery | (464,531) | 0 |
Accrued interest | 48,142 | (308,527) |
Salaries, wages and benefits | 307,172 | 987,178 |
Fuel | (777,938) | (2,103,131) |
Other current liabilities | (2,022,672) | (94,221) |
Deferred liabilities | (17,313) | (3,698) |
Net cash provided by operating activities | 16,600,906 | 28,221,843 |
Cash flows from investing activities: | ||
Return of capital from investment in associated organizations | 414,443 | 414,012 |
Investment in special funds | (14,855) | (296,047) |
Investment in marketable securities and investments-other | (22,430) | (1,423,399) |
Proceeds from the sale of marketable securities | 6,437,508 | 1,672,465 |
Extension and replacement of plant | (19,481,053) | (9,708,321) |
Net cash used in investing activities | (12,666,387) | (9,341,290) |
Cash flows from financing activities: | ||
Payments for debt issue costs | (472,332) | 0 |
Net increase (decrease) in short-term obligations | (53,000,000) | 3,000,000 |
Proceeds from long-term obligations | 75,000,000 | 0 |
Repayments of long-term obligations | (25,012,667) | (25,012,667) |
Memberships and donations received | 139,811 | 158,730 |
Retirement of patronage capital and estate payments | (6,583,350) | (395,252) |
Proceeds from consumer advances for construction | 2,097,882 | 2,162,439 |
Net cash used in financing activities | (7,830,656) | (20,086,750) |
Net change in cash, cash equivalents, and restricted cash equivalents | (3,896,137) | (1,206,197) |
Cash, cash equivalents, and restricted cash equivalents at beginning of period | 7,428,969 | 7,201,759 |
Cash, cash equivalents, and restricted cash equivalents at end of period | 3,532,832 | 5,995,562 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Cost of removal obligation | (2,277,741) | 1,231,344 |
Extension and replacement of plant included in accounts payable | 1,657,083 | 2,470,626 |
Patronage capital retired/net transferred and included in other current liabilities | 0 | 2,000,000 |
Supplemental disclosure of cash flow information - interest expense paid, net of amounts capitalized | $ 10,317,686 | $ 10,725,424 |
Presentation Of Financial Infor
Presentation Of Financial Information | 6 Months Ended |
Jun. 30, 2019 | |
Presentation Of Financial Information [Abstract] | |
Presentation Of Financial Information | 1. PRESENTATION OF FINANCIAL INFORMATION The accompanying unaudited interim financial statements include the accounts of Chugach Electric Association, Inc. (“Chugach”) and have been prepared in accordance with generally accepted accounting principles for interim financial information. Accordingly, they do not include all of the information and footnotes required by United States of America generally accepted accounting principles (“U.S. GAAP”) for complete financial statements. They should be read in conjunction with Chugach’s audited financial statements for the year ended December 31, 2018, filed as part of Chugach’s annual report on Form 10-K. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The results of operations for interim periods are not necessarily indicative of the results that may be expected for an entire year or any other period. |
Description Of Business
Description Of Business | 6 Months Ended |
Jun. 30, 2019 | |
Description Of Business [Abstract] | |
Description Of Business | 2. DESCRIPTION OF BUSINESS Chugach is one of the largest electric utilities in Alaska. Chugach is engaged in the generation, transmission and distribution of electricity in the Anchorage and upper Kenai Peninsula areas. Chugach is on an interconnected regional electrical system referred to as the Alaska Railbelt, a 400 -mile-long area stretching from the coastline of the southern Kenai Peninsula to the interior of the state, including Alaska's largest cities, Anchorage and Fairbanks. Chugach’s retail and wholesale members are the consumers of the electricity sold. Chugach supplies much of the power requirements of the City of Seward (“Seward”), as a wholesale customer. Occasionally, Chugach sells available generation, in excess of its own needs, to Matanuska Electric Association, Inc. (“MEA”), Homer Electric Association, Inc. (“HEA”), Golden Valley Electric Association, Inc. (“GVEA”) and Anchorage Municipal Light & Power (“ML&P”). Chugach was organized as an Alaska electric cooperative in 1948 and operates on a not ‑for ‑profit basis and, accordingly, seeks only to generate revenues sufficient to pay operating and maintenance costs, the cost of purchased power, capital expenditures, depreciation, and principal and interest on all indebtedness and to provide for reserves. Chugach is subject to the regulatory authority of the Regulatory Commission of Alaska (“RCA”). Chugach has three Collective Bargaining Agreements (“CBA’s”) with the International Brotherhood of Electrical Workers (“IBEW”), representing approximately 70% of its workforce. Chugach also has an agreement with the Hotel Employees and Restaurant Employees (“HERE”). All three IBEW CBA’s are effective th rough June 30, 2021 . The three CBA’s provide for wage increases in all years and include health and welfare premium cost sharing provisions. The HERE contract is effective through June 30, 2021, and provides for wage, pension contribution, and health and welfare contribution increases in all years. |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Significant Accounting Policies [Abstract] | |
Significant Accounting Policies | 3. SIGNIFICANT ACCOUNTING POLICIES a. Management Estimates In preparing the financial statements in conformity with U.S. GAAP, the management of Chugach is required to make estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the balance sheet and revenues and expenses for the reporting period. Estimates include allowance for doubtful accounts, workers’ compensation liability, deferred charges and liabilities, unbilled revenue, estimated useful life of utility plant, cost of removal and asset retirement obligation (“ARO”), and remaining proved Beluga River Unit (“BRU”) reserves. Actual results could differ from those estimates. b. Regulation The accounting records of Chugach conform to the Uniform System of Accounts as prescribed by the Federal Energy Regulatory Commission (“FERC”). Chugach meets the criteria, and accordingly, follows the accounting and reporting requirements of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 980, “Topic 980 - Regulated Operations.” FASB ASC 980 provides for the recognition of regulatory assets and liabilities as allowed by regulators for costs or credits that are reflected in current rates or are considered probable of being included in future rates. Chugach’s regulated rates are established to recover all of the specific costs of providing electric service. In each rate filing, rates are set at levels to recover all of the specific allowable costs and those rates are then collected from retail and wholesale customers. The regulatory assets or liabilities are then reduced as the cost or credit is reflected in earnings and our rates. c. Income Taxes Chugach is exempt from federal income taxes under the provisions of Section 501(c)(12) of the Internal Revenue Code and for the six month periods ended June 30, 2019 and 2018 was in compliance with that provision. Chugach applies a more-likely-than-not recognition threshold for all tax uncertainties. FASB ASC 740, “Topic 740 – Income Taxes,” only allows the recognition of those tax benefits that have a greater than 50% likelihood of being sustained upon examination by the taxing authorities. Chugach’s management reviewed Chugach’s tax positions and determined there were no outstanding or retroactive tax positions that were not highly certain of being sustained upon examination by the taxing authorities. d. Cash, Cash Equivalents, and Restricted Cash Equivalents The following table provides a reconciliation of cash, cash equivalents, and restricted cash equivalents reported within the Consolidated Balance Sheet that sum to the total of the same such amounts shown in the Consolidated Statements of Cash Flows. June 30, 2019 December 31, 2018 Cash and cash equivalents $ 2,199,574 $ 6,106,995 Restricted cash equivalents 1,225,258 1,213,974 Restricted cash equivalents included in other property and investments 108,000 108,000 Total cash, cash equivalents and restricted cash equivalents shown in the consolidated statements of cash flows $ 3,532,832 $ 7,428,969 Restricted cash equivalents include funds on deposit for future workers’ compensation claims. e. Marketable Securities Chugach’s marketable securities had consisted of bond mutual funds, corporate bonds, and certificates of deposit with a maturity less than 12 months, classified as trading securities, reported at fair value with gains and losses in earnings. Interest and dividend income from marketable securities is included in nonoperating margins – interest income, and was $ 91.7 thousand and $ 196.0 thousand at June 30, 2019 and 2018, respectively. Chugach sold all marketable securities and recognized a loss during the second quarter of 2019. Net gains and losses on marketable securities are included in nonoperating margins – capital credits, patronage dividends and other, and are summarized as follows: Six months ended June 30, 2019 Six months ended June 30, 2018 Net gains (losses) recognized during the period on trading securities $ 98,495 $ (181,257) Less: Net gains (losses) recognized during the period on trading securities sold during the period 98,495 (77,597) Unrealized gains (losses) recognized during the reporting period on trading securities still held at the reporting date $ 0 $ (103,660) f. Accounts Receivable Included in accounts receivable are amounts invoiced to ML&P for their proportionate share of current Southcentral Power Project (“SPP”) costs, which amounted to $1. 0 million and $ 1.4 million at June 30, 2019 and December 31, 2018, respectively. g. Fuel Stock Fuel Stock is the weighted average cost of fuel injected into Cook Inlet Natural Gas Storage, LLC (“CINGSA”). Chugach’s fuel balance in storage amounted to $ 10.0 million and $12.0 million at June 30, 2019, and December 31, 2018, respectively. h. Investments in Associated Organizations Chugach’s investments in associated organizations are considered equity securities without readily determinable fair values, and as such are measured at cost minus impairment, if any. There were no impairments of these investm ents recognized during the six months ended June 3 0 , 2019 or 2018. |
Revenue From Contracts With Cus
Revenue From Contracts With Customers | 6 Months Ended |
Jun. 30, 2019 | |
Revenue From Contracts With Customers [Abstract] | |
Revenue From Contracts With Customers | 4. REVENUE FROM CONTRACTS WITH CUSTOMERS a. Nature of goods and services The following is a description of the contracts and customer classes from which Chugach generates revenue. i. Energy Sales Energy sales revenues are Chugach’s primary source of revenue, representing approximately 96.6% and 94.7% of total operating revenue during the six months ended June 30, 2019 and 2018, respectively. Energy sales revenues are recognized upon delivery of electricity, based on billing rates authorized by the RCA, which are applied to customers’ usage of electricity. Chugach’s rates are established, in part, on test period sales levels that reflect actual operating results. Chugach's tariffs include provisions for the recovery of gas costs according to gas supply contracts and costs associated with the BRU operations, as well as purchased power costs. Expenses associated with electric services include fuel purchased from others and produced from Chugach’s interest in the BRU, both of which are used to generate electricity, as well as power purchased from others. Chugach is authorized by the RCA to recover fuel and purchased power costs through the fuel and purchased power adjustment process, which is adjusted quarterly to reflect increases and decreases of such costs . The amount of fuel and purchased power revenue recognized is equal to actual fuel and purchased power costs. We recognize differences between projected recoverable fuel and purchased power costs and amounts actually recovered through rates. The fuel cost under/over recovery on our balance sheet represents the net accumulation of any under- or over-collection of fuel and purchased power costs. Fuel cost under-recovery will appear as an asset on our balance sheet and will be collected from our members in subsequent periods. Conversely, fuel cost over-recovery will appear as a liability on our balance sheet and will be refunded to our members in subsequent periods. Customer Class Nature, timing of satisfaction of performance obligations, and significant payment terms Retail Retail energy customers can have up to four components of monthly billing included in revenue – energy, fuel and purchased power, demand and customer charge. The energy rate and fuel and purchased power surcharge are applied by kilowatt hour (kWh) usage. The demand charge is applied by kilowatt (kW). The customer charge is a monthly amount applied by meter. Wholesale Classified as firm energy sales. Four components of monthly billing are included in revenue – energy, fuel and purchased power, demand and customer charge. The energy rate and fuel and purchased power surcharge are applied by kWh usage. The demand charge is applied by kW. The customer charge is a monthly amount applied by meter. Economy Classified as non-firm energy sales. Three components of monthly billing are included in revenue – fuel, operations and maintenance, and margin. The actual fuel costs are billed per thousand cubic feet (Mcf) used. The operations and maintenance and margin rates are applied by megawatt hour (MWh) usage. Payment on energy sales invoices to all customer classes above are due within 15 to 30 days. Chugach calculates unbilled revenue, for residential and commercial customers, at the end of each month to ensure the recognition of a full month of revenue. Chugach accrued $7,936,992 and $7,749,823 of unbilled retail revenue at June 30, 2019 and 2018, respectively, which is included in accounts receivable on the balance sheet. Revenue derived from wholesale and economy customers is recorded from metered locations on a calendar month basis, so no estimation is required. The collectability of our energy sales is very high with typically 0.10% written off as bad debt expense, adjusted annually. There were no costs associated with obtaining any of these contracts, therefore no asset was recognized or recorded associated with obtaining any contract. ii. Wheeling Wheeling represented 2.2% and 4.1% of our revenue during the six months ended June 30, 2019 and 2018, respectively. Wheeling was recorded through the wheeling of energy across Chugach’s transmission lines at rates set by utility tariff and approved by the RCA . The rates are applied to MWh of energy wheeled. The collectability of wheeling is very high, with no adjustment required. iii. Other Miscellaneous Services Other miscellaneous services consist of various agreements including dispatch service and gas transfer agreements, pole rentals and microwave bandwidth. Revenue from these agreements is billed monthly and represented 1.1% and 1.2% of our total operating revenue during the six months ended June 30, 2019 and 2018, respectively. The revenue recognized from these agreements is recorded as the service is provided over a period of time. The collectability of these agreements is very high, with no adjustment required. b. Disaggregation of Revenue The table below details the revenue recognized by customer class and disaggregates base revenue from fuel and purchased power revenue recognized in the Consolidated State ment of Operations for the second quarter of 2019 and 2018 (in millions). Base Rate Sales Revenue Fuel and Purchased Power Revenue Total Revenue 2019 2018 % Variance 2019 2018 % Variance 2019 2018 % Variance Retail $ 28.9 $ 27.9 3.6 % $ 15.2 $ 14.0 8.6 % $ 44.1 $ 41.9 5.3 % Wholesale $ 0.5 $ 0.5 0.0 % $ 0.8 $ 0.8 0.0 % $ 1.3 $ 1.3 0.0 % Economy $ 0.0 $ 0.0 0.0 % $ 0.0 $ 0.0 0.0 % $ 0.0 $ 0.0 0.0 % Total Energy Sales $ 29.4 $ 28.4 3.5 % $ 16.0 $ 14.8 8.1 % $ 45.4 $ 43.2 5.1 % Wheeling $ 0.0 $ 0.0 0.0 % $ 1.5 $ 2.2 (31.8 %) $ 1.5 $ 2.2 (31.8 %) Gas Sales $ 0.0 $ 0.0 0.0 % $ 0.0 $ 0.0 0.0 % $ 0.0 $ 0.0 0.0 % Other $ 0.6 $ 0.6 0.0 % $ 0.0 $ 0.0 0.0 % $ 0.6 $ 0.6 0.0 % Total Miscellaneous $ 0.6 $ 0.6 0.0 % $ 1.5 $ 2.2 (31.8 %) $ 2.1 $ 2.8 (25.0 %) Total Revenue $ 30.0 $ 29.0 3.4 % $ 17.5 $ 17.0 2.9 % $ 47.5 $ 46.0 3.3 % The table below details the revenue recognized by customer class and disaggregates base revenue from fuel and purchased power revenue recognized in the Consolidated State ment of Operations for the six months ended June 30, 2019 and 2018 (in millions). Base Rate Sales Revenue Fuel and Purchased Power Revenue Total Revenue 2019 2018 % Variance 2019 2018 % Variance 2019 2018 % Variance Retail $ 62.0 $ 60.2 3.0 % $ 35.1 $ 33.8 3.8 % $ 97.1 $ 94.0 3.3 % Wholesale $ 1.1 $ 1.0 10.0 % $ 1.7 $ 1.6 6.2 % $ 2.8 $ 2.6 7.7 % Economy $ 0.0 $ 0.0 0.0 % $ 0.0 $ 0.0 0.0 % $ 0.0 $ 0.0 0.0 % Total Energy Sales $ 63.1 $ 61.2 3.1 % $ 36.8 $ 35.4 4.0 % $ 99.9 $ 96.6 3.4 % Wheeling $ 0.0 $ 0.0 0.0 % $ 2.3 $ 4.2 (45.2 %) $ 2.3 $ 4.2 (45.2 %) Gas Sales $ 0.0 $ 0.0 0.0 % $ 0.0 $ 0.0 0.0 % $ 0.0 $ 0.0 0.0 % Other $ 1.2 $ 1.2 0.0 % $ 0.0 $ 0.0 0.0 % $ 1.2 $ 1.2 0.0 % Total Miscellaneous $ 1.2 $ 1.2 0.0 % $ 2.3 $ 4.2 (45.2 %) $ 3.5 $ 5.4 (35.2 %) Total Revenue $ 64.3 $ 62.4 3.0 % $ 39.1 $ 39.6 (1.3 %) $ 103.4 $ 102.0 1.4 % c. Contract Balances There were no contract assets at June 30, 2019, or at December 31, 2018. The table below provides information about contract receivables and contract liabilities. June 30, 2019 December 31, 2018 Contract receivables, included in accounts receivable $ 22,961,370 $ 27,179,031 Contract liabilities 4,579,376 5,196,426 Contract receivables represent amounts receivable from retail, wholesale, economy and wheeling. Contract liabilities consist of credit balances and fuel cost over-recovery. Credit balances are reported as consumer deposits and represent the prepaid accounts of retail customers and are recognized in revenue as the customer uses electric service. Fuel cost over-recovery represents the over-collection of fuel and purchased power costs through the fuel and purchased power adjustment process, which will be refunded to customers through lower rates in the following quarter. Significant changes in contract liabilities balances are as follows: June 30, 2019 December 31, 2018 Contract liabilities at beginning of period $ 5,196,426 $ 1,581,481 Cash received, excluding amounts recognized as revenue during the period 4,344,789 5,196,426 Revenue recognized that was included in the contract liability balance at the beginning of the period (4,961,839) (1,581,481) Contract liabilities at end of period $ 4,579,376 $ 5,196,426 d. Transaction Price Allocated to Remaining Performance Obligations The table below includes estimated revenue to be recognized during the remainder of 2019 related to performance obligations that are unsatisfied (or partially unsatisfied) at June 30, 2019. 2019 Credit balances $ 1,655,612 Fuel cost over-recovery 2,923,764 Credit balances are primarily associated with Chugach’s LevelPay program. The program calculates the monthly amount to be collected from customers annually. It is anticipated the balance will be recognized in revenue within the following year as customers consume electricity. Chugach’s fuel cost over- and under- recovery are adjusted quarterly, therefore, amounts over or under collected will be collected or refunded in the following quarter. |
Regulatory Matters
Regulatory Matters | 6 Months Ended |
Jun. 30, 2019 | |
Regulatory Matters [Abstract] | |
Regulatory Matters | 5. REGULATORY MATTERS Simplified Rate Filing Chugach is a participant in the Simplified Rate Filing (“SRF”) process for adjustments to base demand and energy rates for Chugach retail customers and wholesale customer, Seward. SRF is an expedited base rate adjustment process available to electric cooperatives in the State of Alaska, with filings made either on a quarterly or semi-annual basis. Chugach is a participant on a quarterly filing schedule basis. Chugach is required to submit filings to the RCA for approval before any rate changes can be implemented. While there is no limitation on decreases, base rate increases under SRF are limited to 8% in a 12-month period and 20% in a 36-month period. Chugach submitted quarterly SRF filings which resulted in a system demand and energy rate increase of 2.7% effective November 1, 2018; an increase of 0.7% effective February 1, 2019; an increase of 0.8% effective May 1, 2019; and an increase of 2.5% effective August 1, 2019. Operation and Regulation of the Alaska Railbelt Electric and Transmission System In June 2016, the RCA opened a docket to “evaluate the reliability and security standards and practices of Alaska Electric Utilities.” In 2017, Chugach and several other Alaska Railbelt utilities entered into a contract with GDS Associates, Inc. (“GDS”). GDS’s role was to facilitate discussion among all six Alaska Railbelt utilities and various stakeholders with an end goal of submitting to the RCA a Railbelt Reliability Council (“RRC”), including a governance structure, that will be responsible for adoption and enforcement of uniform reliability and interconnection standards and integrated transmission resource planning and evaluation on transition to a single regional load balancing area. GDS presented to the RCA during technical conferences in January and March of 2018. Chugach and the other utilities provided GDS’s final recommendation of the RRC to the RCA in May 2018. During the fourth quarter of 2018, the utilities reviewed and adapted the memorandum of understanding with GDS (“GDS MOU”) with the RCA. The utilities are currently in discussions with non-utility stakeholders to include their input in the RRC formation process. In parallel, the utilities and an affiliate of A merican Transmission Company ( “ ATC ”) were in discussions regarding the formation of a transmission-only utility. ATC, GVEA, HEA, ML&P, and Seward Electric System collectively dba the Alaska Railbelt Transmission Co (“ART”) filed with the RCA for a Railbelt-wide Transco Certificate of Public Convenience (“CPCN”) on February 25, 2019. At that time Chugach’s primary focus was on filing with the RCA for the transfer of the ML&P CPCN to Chugach, and we were unable to complete our due diligence on the Transco filing prior to the filing date. Neither Chugach nor MEA were a party to this filing. O n March 15, 2019 the RCA initiated an order requesting comments on proposed legislative language which would authorize the RCA to designate or develop an Electric Reliability Organization (“ERO”). Chugach submitted comments on this proposed legislative language seeking to delay adoption until the RRC Governance Board can be formed but cont inued to work with the RCA and s takeholders to craft acceptable legislation. Subsequently, Chugach completed its review of the ART filing, determined the model not to be in the best interest of our membership; and therefore, declined to participate in the ART Transco. Following Chugach’s decision not to participate, ART withdrew its filing . Chugach and the members of Alaska Railbelt Cooperative Transmission and Electric Company (“ ARCTEC ”) continue to work with the other utilities and stakeholders to arrive at legislation and RRC organization acceptable to a ll Railbelt utilities and stake holders. In June 2016, in response to Docket I-16-002, Railbelt Utility Information Technology and Operations Technology, leadership began meeting to discuss Railbelt Cybersecurity. The Railbelt Utilities Managers group designated the Cybersecurity Working Group to review industry standards and provide a statement of work to develop Railbelt Cybersecurity Standards. On June 21, 2018, Chugach posted a Request for Proposal to hire a consultant to write the standards. A final draft was presented to the Railbelt Utility Managers on February 15, 2019 . On July 10, 2019 a status update was provided to the RCA from the Railbelt Utility Managers announcing the completion of Alaska Critical Infrastructure Protection (“AKCIP”) Cybersecurity Standards, and collective agreement to adopt them effective January 1, 2020 and implement them according to the implementation schedules contained in the specific standards. ML&P Acquisition In December 2017, the Mayor of Anchorage, Alaska, announced plans to place a proposition on the April 3, 2018 municipal ballot allowing the voters to authorize the sale of ML&P to Chugach. The proposition was approved by Anchorage voters 65.08% to 34.92% per the certified election results. Chugach and the Municipality of Anchorage (“MOA”) negotiated final sales agreements and associated documents. The sale of ML&P was approved by the Anchorage Assembly on December 4, 2018 and the Chugach Board of Directors gave its final approval on December 19, 2018. The agreements and associated documents were executed on December 28, 2018. Pursuant to these agreements and associated documents, on April 1, 2019, Chugach submitted the Joint Request for Necessary Approvals for Acquisition of Anchorage Municipal Light and Power, and the Petition for Approvals Needed to Acquire Anchorage Municipal Light and Power and Application to Amend Certificate of Public Convenience and Necessity No. 8 to the RCA. The RCA accepted the filing as complete on April 18, 2019, and the procedural conference was held on April 22, 2019. On May 8, 2019, the RCA issued an order indicating that a final order in the case will be issued by November 19, 2019. In addition, the RCA granted the petitions to intervene filed by MEA; Providence Health and Services (“Providence”); GVEA; the Federal Executive Agencies (“FEA”); and HEA / Alaska Electric and Energy Cooperative, Inc. Hearings on the acquisition are scheduled during August and September 2019. In June 2019, Chugach and GVEA entered into a Memorandum of Understanding (MOU) in which Chugach agreed to provide GVEA non-firm energy, wheeling and ancillary services for a 3 -year period under terms and conditions consistent with its operating tariff, and will make available 5 MW of Bradley Lake capacity to GVEA for a 5 -year period. Excluding fuel, the MOU is expected to provide over $10 million of additional revenue to the Chugach system over the term of the agreement. GVEA has withdra w n its petition to intervene regarding the ML&P acquisition . For more information, see “Note 10 – ML&P ACQUISITION.” Petition to Increase Times Interest Earned Ratio (“TIER”) On January 15, 2019, Chugach submitted a Petition to the RCA requesting to increase its system target TIER from 1.35 to 1.55 . If approved, and assuming no other changes on the system, this change would increase annual margins by approximately $4.0 million. The RCA opened a docket to review the petition, and invited the Office of the Attorney General, Regulatory Affairs and Public Advocacy Section (“RAPA”) to participate. Chugach and RAPA entered a into stipulation that no disputed issues exist in this Docket. A hearing was held on July 15, 2019, and a decision by the RCA on the stipulation is expected by October 14, 2019. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2019 | |
Debt [Abstract] | |
Debt | 6. DEBT Lines of Credit Chugach maintains a $50.0 million line of credit with National Rural Utilities Cooperative Finance Corporation (“NRUCFC”). Chugach did not utilize this line of credit in the six months ended June 30, 2019. In addition, Chugach did not utilize this line of credit during 2018 and had no outstanding balance at December 31, 2018. The borrowing rate is calculated using the total rate per annum and may be fixed by NRUCFC. The borrowing rate was 4.00 % at June 30, 2019, and 3.75% at December 31, 2018. The NRUCFC Revolving Line Of Credit Agreement requires that Chugach, for each 12 -month period, for a period of at least five consecutive days, pay down the entire outstanding principal balance. The NRUCFC line of credit was renewed September 29, 2017, and expires September 29, 2022 . This line of credit is immediately available for unconditional borrowing. Commercial Paper On June 13, 2016 , Chugach entered into a $150.0 million senior unsecured credit facility (“The Credit Agreement”) which is used to back Chugach’s commercial paper program. The pricing included an all-in drawn spread of one month London Interbank Offered Rate (“LIBOR”) plus 90.0 basis points, along with a 10.0 basis points facility fee (based on an A/A2/A unsecured debt rating) . The commercial paper can be repriced between one day and 270 days. The participating banks include d NRUCFC, KeyBank National Ass ociation, Bank of America, N.A. , and CoBank, ACB. The Credit Agreement was due to expire on June 13, 2021 . On July 3 0 , 2019, Chugach entered into the First Amendment to the Credit Agreement, increasing the senior unsecured credit facility to $300.0 million and adding Wells Fargo Bank, N.A. as a participating bank and extending the Credit Agreement to July 30, 2024 . For more information, s ee “ Note 14 – Subsequent Events .” Chugach expects to continue issuing commercial paper in 2019, as needed. Chugach had $8.0 million and $61.0 million of commercial paper outstanding at June 30, 2019, and December 31, 2018, respectively. The following table provides information regarding average commercial paper balances outstanding for the quarter ended June 30, 2019, and 2018 (dollars in millions), as well as corresponding weighted average interest rates: 2019 2018 Average Balance Weighted Average Interest Rate Average Balance Weighted Average Interest Rate $ 45.5 2.75 % $ 56.4 2.26 % Term Loans Chugach has a term loan facility with CoBank. Loans made under this facility are evidenced by the 2016 CoBank Note, which is governed by the Amended and Restated Master Loan Agreement dated June 30, 2016 (“CoBank Loan Agreement”), and secured by the Second Amended and Restated Indenture of Trust (“Indenture”). At June 30, 2019, Chugach had $ 35.6 million outstanding with CoBank. Financing On May 15, 2019 , Chugach issued $75.0 million of First Mortgage Bonds, 2019 Series A, due May 15, 2049 (the “Bonds”). The Bonds were issued for the purpose of repaying outstanding commercial paper used to finance Chugach’s capital improvement program and for general corporate purposes. The Bonds bear interest at the rate of 3.86% . Interest on the Bonds is due each May 15 and November 15, commencing on November 15, 2019 . Principal on the Bonds is due in varying installment amounts on an annual basis beginning May 15, 2021, resulting in an average life of approximately 12.0 years. The Bonds are secured, ranking equally with all other long-term obligations, by a first lien on substantially all of Chugach’s assets, pursuant to the Seventh Supplemental Indenture to the Inden ture , which Indenture initially became effective on January 20, 2011, as previously amended and supplemented. Debt Issuance Costs The following table outlines debt issuance costs associated with long-term obligations, excluding current installments, at June 30, 2019. Long-term Obligations Unamortized Debt Issuance Costs 2011 Series A Bonds $ 178,999,997 $ 1,038,873 2012 Series A Bonds 162,000,000 899,285 2017 Series A Bonds 34,000,000 183,657 2019 Series A Bonds 75,000,000 472,332 2016 CoBank Note 32,376,000 186,362 $ 482,375,997 $ 2,780,509 The following table outlines debt issuance costs associated with long-term obligations, excluding current installments, at December 31, 2018. Long-term Obligations Unamortized Debt Issuance Costs 2011 Series A Bonds $ 189,666,664 $ 1,096,801 2012 Series A Bonds 172,750,000 938,028 2017 Series A Bonds 36,000,000 188,904 2016 CoBank Note 33,972,000 201,514 $ 432,388,664 $ 2,425,247 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2019 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | 7. RECENT ACCOUNTING PRONOUNCEMENTS Issued, and adopted at June 30, 2019: ASC Update 2016-02 “ Leases (Topic 842)” and Related Updates In February of 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” ASU 2016-02 amends guidance related to the recognition, measurement, presentation and disclosure of leases for lessors and lessees. Pursuant to the new standard, lessees will be required to identify all leases, including those embedded in contracts, classify leases as finance or operating, recognize all leases on the balance sheet and record corresponding right-of-use assets and lease liabilities. The update requires the recognition of lease assets and liabilities for those leases currently classified as operating leases while also refining the definition of a lease. Operating leases will reflect lease expense on a straight-line basis, while finance leases will result in the separate presentation of interest expense on the lease liability and amortization expense of the right-of-use asset. In January 2018, the FASB issued ASU 2018-01, “Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842.” ASU 2018-01 amends ASU 2016-02 to provide an optional transition practical expedient allowing entities to not evaluate under Topic 842 existing or expired land easements that were not previously accounted for as leases under the current lease guidance in Topic 840. In December 2018, the FASB issued ASU 2018-20, “Leases (Topic 842): Narrow-Scope Improvements for Lessors.” ASU 2018-20 amends ASU 2016-02 to address lessor stakeholders concerns regarding the following issues: sales taxes and other similar taxes collected from lessees, certain lessor costs, and recognition of variable payments from contracts with lease and nonlease components. Topic 842 requires a modified retrospective transition, with the cumulative effect of transition, including initial recognition by lessees of lease assets and liabilities for existing operating leases, as of either the effective date, or the beginning of the earliest period presented. Under the effective date method, the entity’s comparative reporting period is unchanged. Comparative reporting periods are presented in accordance with Topic 840, while periods subsequent to the effective date are presented in accordance with Topic 842. Chugach elected to use the effective date method. The standard includes certain practical expedients intended to ease the burden of adoption on preparers. Chugach elected each of the following practical expedients: 1) Package of Practical expedients (all or nothing) - An entity may elect not to reassess: a) whether expired or existing contracts contain leases under the new definition of a lease, b) lease classification for expired or existing leases and c) whether previously capitalized initial direct costs would qualify for capitalization under Topic 842. 2) Use of hindsight - An entity may use hindsight in determining the lease term, and in assessing the likelihood that a lease purchase option will be exercised. 3) Land easements - An entity may elect not to reassess whether land easements meet the definition of a lease if they were not accounted for as leases prior to adoption of Topic 842 until they expire, unless they are modified on or after the effective date. A lessee may elect not to separate the non-lease components of a contract from the lease component to which they relate. This means that the components will be treated as a single lease component. The lessee elects this practical expedient by class of underlying asset – for example: office equipment, automobiles, office space. Chugach elected this practical expedient for all classes of underlying assets. Chugach elected not to recognize right-of-use assets and lease liabilities that arise from short-term leases (those with a term of less than twelve months) for any class of underlying asset. These updates are effective for fiscal years beginning after December 15, 2018, including the interim periods within those years, with early adoption permitted. Chugach began application of ASU 2016-02 and related updates on January 1, 2019. Adoption did not have a material effect on our results of operations, financial position, and cash flows. See “ Note 8 – LEASES .” Issued, not yet adopted: ASC Update 2016-13 “ Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ” and Related Updates In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 revised the criteria for the measurement, recognition, and reporting of credit losses on financial instruments to be recognized when expected. This update is effective for fiscal years beginning after December 15, 2019, including the interim periods within those years, with early adoption permitted for fiscal years beginning after December 15, 2018, including interim periods within those years. Chugach will begin application of ASU 2016-13 on January 1, 2020. Adoption is not expected to have a material effect on its results of operations, financial position, and cash flows. ASC Update 2018-13 “ Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement” In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement.” ASU 2018-13 changes the fair value measurement disclosure requirements of ASC 820. This update is effective for all entities for fiscal years beginning after December 15, 2019, including interim periods therein. Early adoption is permitted for any eliminated or modified disclosures upon issuance of this ASU. Chugach will begin application of ASU 2018-13 on January 1, 2020. Adoption is not expected to have a material effect on its results of operations, financial position, and cash flows. ASC Update 2018-14 “ Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans” In August 2018, the FASB issued ASU 2018-14, “Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans.” ASU 2018-14 Modifies ASC 715-20 to improve disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The ASU is effective for fiscal years ending after December 15, 2020, for public companies. Early adoption is permitted. Chugach will begin application of ASU 2018-14 on January 1, 2021. Adoption is not expected to have a material effect on its results of operations, financial position, and cash flows. ASC Update 2018-15 “ Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force)” In August 2018, the FASB issued ASU 2018-15, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.” ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The ASU is effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. Chugach will begin application of ASU 2018-15 on January 1, 2020. Adoption is not expected to have a material effect on its results of operations, financial position, and cash flows. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | 8. LEASES Effective January 1, 2019, Chugach began application of Accounting Standards Codification 842, Leases (Topic 842). Adoption of the new standard requires recognition of leases on the balance sheet. Chugach has no financing leases and several operating leases, most of which are various land easements. Chugach identified three operating leases as right-o f-use assets for a building, office equipment , and substation land lease , with remaining lease terms of one to 25 years and a weighted average lease term of 7.11 years. Chugach’s operating lease assets are presented as operating lease right-of-use assets on the consolidated balance sheet. The current portion of operating lease liabilities is included in current installments of long-term obligations and the long-term portion is presented as operating lease liabilities on the consolidated balance sheet. A discount rate of 4.24% was used in calculating the right-to-use assets and lease liabilities. Adoption had no impact on our consolidated statements of operations. The recognition of the right-of-use asset and operating lease liability represents a non-cash investing and financing activity. Total opera ting lease expense for the six months ended June 30 , 2019, was $452,742 , primarily associated with land easements and helicopter services. Supplemental cash flow information associated with leases: Six months ended June 30, 2019 Cash paid for amounts included in the measurement of liabilities: Operating cash flows from operating leases $ 111,750 Right-of-use assets obtained in exchange for lease obligations: Operating leases 1,025,106 Supplemental balance sheet information associated with leases at June 30 were: 2019 Operating lease right-of-use assets $ 1,025,106 Operating lease liabilities $ 834,925 Current installments of lease liabilities 190,181 Total operating lease liabilities $ 1,025,106 Maturities associated with lease liabilities: June 30, 2019 2019 $ 118,260 2020 225,840 2021 225,000 2022 225,000 2023 225,000 Thereafter 171,000 Total lease payments 1,190,100 Less imputed interest 164,994 Present value of lease liabilities $ 1,025,106 Chugach entered into a Power Purchase Agreement with Fire Island Wind, LLC, (“FIW”) on June 21, 2011. The Fire Island Wind contract contains a lease because the agreement identifies an asset (the wind farm is explicitly specified in the agreement and FIW does not have substantive substitution rights) and Chugach controls the use of the asset (it takes 100% of the output and, to the extent there is wind, can control how and when the wind fa rm produces power directly through its supervisory control and data acquisition (“ SCADA ”) system). However, due to the exclusively variable nature of the payments related to Fire Island Wind, no new assets or liabilities have been added to the balance sheet, no changes were made to the cash flow statement, and the variable payments are still classified as purchased power expense on the statement of operations . The amount of the variable payments included in purchased power for the six months ended June 30, 2019, was $2,306,187 . |
Fair Values Of Assets And Liabi
Fair Values Of Assets And Liabilities | 6 Months Ended |
Jun. 30, 2019 | |
Fair Values Of Assets And Liabilities [Abstract] | |
Fair Values Of Assets And Liabilities | 9. FAIR VALUES OF ASSETS AND LIABILITIES Fair Value Hierarchy In accordance with FASB ASC 820, Chugach groups its financial assets and liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are: Level 1 – Valuation is based upon quoted prices for identical instruments traded in active exchange markets, such as the New York Stock Exchange. Level 1 also includes United States Treasury and federal agency securities, which are traded by dealers or brokers in active markets. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. Level 2 – Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3 – Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect Chugach’s estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques. Chugach sold all marketable securities in the second quarter of 2019, using the funds for patronage capital payments to HEA and MEA. Chugach had no marketabl e securities at June 30, 2019. T he table below presents the balance of Chugach’s marketable securities measured at fair value on a recurring basis at December 31, 201 8. Chugach’s bond mutual funds were measured using quoted prices in active markets. Chugach had no other assets or liabilities measured at fair value on a recurring basis at June 30, 201 9 , or at December 31, 201 8 . December 31, 2018 Total Level 1 Level 2 Level 3 Bond mutual funds $ 6,316,583 $ 6,316,583 $ 0 $ 0 Fair Value of Financial Instruments Fair value estimates are dependent upon subjective assumptions and involve significant uncertainties resulting in variability in estimates with changes in assumptions. The fair value of cash and cash equivalents, accounts receivable and payable, and other short-term monetary assets and liabilities approximate carrying value due to their short-term nature. The estimated fair values (in thousands) of long-term obligations included in the financial statements at June 30, 2019, are as follows: Carrying Value Fair Value Level 2 Long-term obligations (including current installments) $ 508,985 $ 537,470 |
ML&P Acquisition
ML&P Acquisition | 6 Months Ended |
Jun. 30, 2019 | |
Acquisition [Abstract] | |
ML&P Acquisition | 10. ML&P ACQUISITION In December 2017, the Mayor of Anchorage, Alaska, announced plans to place a proposition on the April 3, 2018 municipal ballot allowing the voters to authorize the sale of ML&P to Chugach. The proposition was approved by Anchorage voters 65.08% to 34.92% per the certified election results. Chugach and the MOA negotiated final sales agreements and associated documents. The sale of ML&P was approved by the Anchorage Assembly on December 4, 2018 and the Chugach Board of Directors gave its final approval on December 19, 2018. On December 28, 2018, Chugach entered into the Asset Purchase and Sale Agreement (“APA”) with the MOA to acquire substantially all of the assets, and certain specified liabilities of ML&P, subject to approval by the RCA. On December 28, 2018, Chugach also entered into an Eklutna Power Purchase Agreement (“PILT Agreement”), a Payment in Lieu of Taxes Agreement and a BRU Fuel Agreement (“Ancillary Agreements”) with the MOA. During the first week of April 2019, pursuant to the APA, Chugach and the MOA jointly submitted applications to amend their respective CPCNs to permit Chugach to provide electric service in ML&P’s legacy service territory. The RCA accepted the filing as complete on April 18, 2019, and a procedural conference was held on April 22, 2019. On May 8, 2019, the RCA issued an order indicating that a final order in the case will be issued by November 19, 2019. In addition, the RCA granted the petitions to intervene filed by MEA; Providence Health and Services (“Providence”); GVEA; the Federal Executive Agencies (“FEA”); and HEA / Alaska Electric and Energy Cooperative, Inc. Hearings on the acquisition are scheduled during August and September 2019. In June 2019, Chugach and GVEA entered into a Memorandum of Understanding ( “ MOU ” ) in which Chugach agreed to provide GVEA non-firm energy, wheeling and ancillary services for a 3 -year period under terms and conditions consistent with its operating tariff, and will make available 5 MW of Bradley Lake capacity to GVEA for a 5 -year period. Excluding fuel, the MOU is expected to provide over $10 million of additional revenue to the Chugach system over the term of the agreement. GVEA has withdra w n its petition to intervene regarding the ML&P acquisition . Additionally, Chugach and MOA will cooperate to obtain an order from the RCA approving the Ancillary Agreements and allowing Chugach to recover the costs associated with the transaction. Following RCA approval, a closing date will be scheduled for the transaction within 120 days. Upon closing, Chugach will transfer the purchase price of $767.8 million less the estimated accrued leave liability and the estimated net book value of designated excluded assets. The APA also includes terms for post-closing purchase price adjustments. The Eklutna Power Purchase Agreement, which will be effective upon closing, provides for the purchase of all or a portion of ML&P’s share of generation from the Eklutna Hydroelectric Project by Chugach from MOA for a period of 35 years at specified fixed prices each year. The PILT Agreement, which will be effective upon closing, provides for Chugach to make annual payments in lieu of taxes to the MOA for a period of 50 years based on current millage rates and the adjusted book value of property for ML&Ps service territory as in existence at the closing as adjusted each year. The PILT Agreement also provides that until December 31, 2033, Chugach shall only collect amounts associated with those annual PILT payments from retail customers in the legacy ML&P territory. Thereafter, the annual PILT payments shall be collected from all Chugach retail customers. The BRU Fuel Agreement, which will be effective upon closing, provides that through December 31, 2033, Chugach will use gas attributable to production in the portion of the BRU acquired from MOA to serve retail customers of Chugach within the legacy ML&P territory at a specified gas transfer price and will use any excess gas to serve other customers of Chugach at the same specified gas transfer price. |
Beluga River Unit
Beluga River Unit | 6 Months Ended |
Jun. 30, 2019 | |
Acquisition [Abstract] | |
Beluga River Unit | 11. BELUGA RIVER UNIT The BRU is located on the western side of Cook Inlet, approximately 35 miles from Anchorage, and is an established natural gas field that was originally discovered in 1962. The BRU is jointly owned by ML&P ( 56.7% ), Hilcorp ( 33.3% ), and Chugach ( 10.0% ). Chugach records depreciation, depletion and amortization on BRU assets based on units of production. During 2018, Chugach lifted 1. 2 Billion Cubic Feet (“BCF”), resulting in a cumulative lift since purchase of 4 .5 BCF. Chugach, and other owners, ML&P and Hilcorp, are operating under an existing joint operating agreement (the “Operating Agreement”). Hilcorp is the operator for BRU. In addition to the operator fees to Hilcorp, other BRU expenses include royalty expense and interest on long-term debt. All expenses other than depreciation, depletion and amortization and interest on long-term debt are included as fuel expense on Chugach’s statement of operations. C osts associated with the BRU are recovered on a dollar-for-dollar basis through Chugach’s quarterly fuel and purchased power adjustment process. Chugach has applied and qualified for a small producer tax credit, provided by the State of Alaska, resulting in an estimate of no liability for production taxes for a period of ten years, through 2026. Chugach updates the BRU fuel reserve estimate every three years and the Asset Retirement Obligation (“ARO”) every five years. During the second quarter of 2019, both the fuel reserve and the ARO were updated. The fuel reserve study, based on the updated 2019 report, indicates that Chugach’s BRU gas reserves are 19.6 BCF , or about 3.0 BCF lower in relation to the prior field reserve estimate after adjusting for actual gas produced. The production forecast was based upon well-defined current exponential decline rates for the economic life of the Sterling and Beluga formations. Based on production rates of the existing wells and the revised reserve estimate, the estimated field life has been extended fr om December 2033 to December 2037. The updated ARO estimate for the field is $56.9 million, comprised of $28.5 million for above ground assets and $28.4 million for below ground assets. Chugach’s share of this cost is $5.69 million. The updated ARO is higher than the prior field estimate of $33.5 million produced in the 2013 study. For Chugach, the ARO is increasing from $3.35 million to $5.69 million. Significant factors contributing to the increase include new facilities and increased regulatory requirements for remediation. |
Environmental Matters
Environmental Matters | 6 Months Ended |
Jun. 30, 2019 | |
Environmental Matters [Abstract] | |
Environmental Matters | 12. ENVIRONMENTAL MATTERS Chugach includes costs associated with environmental compliance in both our operating and capital budgets. We accrue for costs associated with environmental remediation obligations when those costs are probable and reasonably estimated. We do not anticipate that environmental related expenditures will have a material effect on our results of operations or financial condition. We cannot, however, predict the nature, extent or cost of new laws or regulations relating to environmental matters. The three utility owners of the Eklutna Hydro Project (Chugach, ML&P, and MEA) are obligated by a 1991 Fish & Wildlife Agreement to develop and implement measures to protect, mitigate, and enhance the fish and wildlife impacted by the project (PME program). The program is to be approved by the Governor of Alaska with completion of the program no later than October of 2032, 35 years after its purchase. The owners initiated a required consultation process with key government agencies and interest ed parties in March 2019. The a greement requires equal consideration of; 1) efficient and economical power production, 2) energy conservation, 3) protection, mitigation of damage to, and enhancement of fish and wildlife, 4) protection of recreation opportunities, 5) municipal water supplies, 6) preservation of other aspects of environmental quality, 7) other beneficial public uses, 9) and requirement of State law. The hydro project and municipal water system currently utilize 100% of the water inflows. The Clean Air Act and Environmental Protection Agency (“EPA”) regulations under the Clean Air Act establish ambient air quality standards and limit the emission of many air pollutants. New Clean Air Act regulations impacting electric utilities may result from future events or new regulatory programs. An Executive Order promoting energy independence and economic growth was issued on March 28, 2017, by the President instructing the EPA to review the Clean Power Plan (“CPP”). On August 21, 2018 the EPA proposed the Affordable Clean Energy (“ACE”) rule which would establish emission guidelines for states to develop plans to address GHG emissions from existing coal-fired power plants. The final ACE rule was issued by EPA on June 19, 2019. The final rule is certain to face legal challenge. The proposed ACE rule regulation, in its current form, is not expected to have a material effect on Chugach’s financial condition, results of operations, or cash flows. While Chugach cannot predict the implementation of any additional new law or regulation, or the limitations thereof, it is possible that new laws or regulations could increase capital and operating costs. Chugach has obtained or applied for all Clean Air Act permits currently required for the operation of generating facilities. Chugach is subject to numerous other environmental statutes including the Clean Water Act, the Resource Conservation and Recovery Act, the Toxic Substances Control Act, the Endangered Species Act, and the Comprehensive Environmental Response, Compensation and Liability Act and to the regulations implementing these statutes. Chugach does not believe that compliance with these statutes and regulations to date has had a material impact on its financial condition, results of operation or cash flows. However, the implementation of any additional new law or regulation, or the limitations thereof, or changes in or new interpretations of laws or regulations could result in significant additional capital or operating expenses. Chugach monitors proposed new regulations and existing regulation changes through industry associations and professional organizations. |
Commitments And Contingencies
Commitments And Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | 13. COMMITMENTS AND CONTINGENCIES Contingencies Chugach is a participant in various legal actions, rate disputes, personnel matters and claims both for and against Chugach’s interests. Management believes the outcome of any such matters will not materially impact Chugach’s financial condition, results of operations or liquidity. Chugach establishes reserves when a particular contingency is probable and calculable. Chugach has not accrued for any contingency at June 30, 2019, as it does not consider any contingency to be probable nor calculable. Chugach faces contingencies that are reasonably possible to occur; however, they cannot currently be estimated. Concentrations Approximately 70% of our employees are members of the IBEW. Chugach has three CBA’s with the IBEW. We also have a CBA with the HERE. All three IBEW CBA’s and the HERE CBA have been renewed through June 30, 20 21 . Commitments Fuel Supply Contracts Chugach has fuel supply contracts with various producers at market terms. Chugach entered into a gas contract with Hilcorp effective January 1, 2015 , to provide gas through March 31, 2018 (the “Hilcorp Agreement”). After two amendments to the Hilcorp Agreement, Chugach’s needs are filled 100% through March 31, 2023 . The total amount of gas under this agreement is estimated to be 60 BCF. All of the production is expected to come from Cook Inlet, Alaska. The terms of the Hilcorp Agreement require Chugach to manage the natural gas transportation over the connecting pipeline systems. Chugach has gas transportation agreements with ENSTAR and Harvest Pipeline. BRU Operations Chugach and other owners, ML&P and Hilcorp, are operating under an existing Joint Operating Agreement. Hilcorp is the operator for BRU. The owners are considering updating the existing Joint Operating Agreement to better match the new owners’ interests. Patronage Capital Pursuant to agreements reached with HEA and MEA, patronage capital allocated or retired to HEA or MEA is classified as patronage capital payable on Chugach’s Balance Sheet. In March 2019, our Board authorized capital credit retirements in the amount of $4.9 million. In April 2019, our Board authorized payments to HEA and MEA of $2.0 million and $6.1 million, respectively. At June 30, 2019, patronage capital payable to HEA was $1.9 million, with no patronage capital payable to MEA. At December 31, 2018, patronage capital payable to HEA and MEA was 3.9 million and $ 1.5 million, respectively. Legal Proceedings Chugach has certain litigation matters and pending claims that arise in the ordinary course of Chugach’s business. In the opinion of management, none of these matters, individually or in the aggregate, is or are likely to have a material adverse effect on Chugach’s results of operations, financial condition or cash flows. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 14. SUBSEQUENT EVENTS On July 30, 2019 , Chugach entered into the First Amendment to the Credit Agreement (“Amendment”) with NRUCFC, Bank of America, N.A. KeyBank National Association, Wells Fargo Bank N.A., and CoBank, ACB. The Amendment increases the lenders’ aggregate commitments under the senior unsecured credit facility from $150 million to $300 million and extends the maturity date of the facility from June 13, 2021 , to July 30, 2024 . The Amendment also includes provisions for calculating interest on loans in ways other than the LIBOR . In addition, the Amendment permits Chugach to enter int o a bridge financing to fund its potential acquisition of Anchorage Municipal Light & Power, of not in excess of $800 million for a term of up to eighteen ( 18 ) months. This indebtedness is in addition to other indebtedness permitted to be incurred under the existing credit facility. Other terms of the credit agreement remain materially the same. |
Significant Accounting Polici_2
Significant Accounting Policies (Policy) | 6 Months Ended |
Jun. 30, 2019 | |
Significant Accounting Policies [Abstract] | |
Management Estimates | a. Management Estimates In preparing the financial statements in conformity with U.S. GAAP, the management of Chugach is required to make estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the balance sheet and revenues and expenses for the reporting period. Estimates include allowance for doubtful accounts, workers’ compensation liability, deferred charges and liabilities, unbilled revenue, estimated useful life of utility plant, cost of removal and asset retirement obligation (“ARO”), and remaining proved Beluga River Unit (“BRU”) reserves. Actual results could differ from those estimates. |
Regulation | b. Regulation The accounting records of Chugach conform to the Uniform System of Accounts as prescribed by the Federal Energy Regulatory Commission (“FERC”). Chugach meets the criteria, and accordingly, follows the accounting and reporting requirements of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 980, “Topic 980 - Regulated Operations.” FASB ASC 980 provides for the recognition of regulatory assets and liabilities as allowed by regulators for costs or credits that are reflected in current rates or are considered probable of being included in future rates. Chugach’s regulated rates are established to recover all of the specific costs of providing electric service. In each rate filing, rates are set at levels to recover all of the specific allowable costs and those rates are then collected from retail and wholesale customers. The regulatory assets or liabilities are then reduced as the cost or credit is reflected in earnings and our rates. |
Income Taxes | c. Income Taxes Chugach is exempt from federal income taxes under the provisions of Section 501(c)(12) of the Internal Revenue Code and for the six month periods ended June 30, 2019 and 2018 was in compliance with that provision. Chugach applies a more-likely-than-not recognition threshold for all tax uncertainties. FASB ASC 740, “Topic 740 – Income Taxes,” only allows the recognition of those tax benefits that have a greater than 50% likelihood of being sustained upon examination by the taxing authorities. Chugach’s management reviewed Chugach’s tax positions and determined there were no outstanding or retroactive tax positions that were not highly certain of being sustained upon examination by the taxing authorities. |
Cash, Cash Equivalents And Restricted Cash Equivalents | d. Cash, Cash Equivalents, and Restricted Cash Equivalents The following table provides a reconciliation of cash, cash equivalents, and restricted cash equivalents reported within the Consolidated Balance Sheet that sum to the total of the same such amounts shown in the Consolidated Statements of Cash Flows. June 30, 2019 December 31, 2018 Cash and cash equivalents $ 2,199,574 $ 6,106,995 Restricted cash equivalents 1,225,258 1,213,974 Restricted cash equivalents included in other property and investments 108,000 108,000 Total cash, cash equivalents and restricted cash equivalents shown in the consolidated statements of cash flows $ 3,532,832 $ 7,428,969 Restricted cash equivalents include funds on deposit for future workers’ compensation claims. |
Marketable Securities | e. Marketable Securities Chugach’s marketable securities had consisted of bond mutual funds, corporate bonds, and certificates of deposit with a maturity less than 12 months, classified as trading securities, reported at fair value with gains and losses in earnings. Interest and dividend income from marketable securities is included in nonoperating margins – interest income, and was $ 91.7 thousand and $ 196.0 thousand at June 30, 2019 and 2018, respectively. Chugach sold all marketable securities and recognized a loss during the second quarter of 2019. Net gains and losses on marketable securities are included in nonoperating margins – capital credits, patronage dividends and other, and are summarized as follows: Six months ended June 30, 2019 Six months ended June 30, 2018 Net gains (losses) recognized during the period on trading securities $ 98,495 $ (181,257) Less: Net gains (losses) recognized during the period on trading securities sold during the period 98,495 (77,597) Unrealized gains (losses) recognized during the reporting period on trading securities still held at the reporting date $ 0 $ (103,660) |
Accounts Receivable | f. Accounts Receivable Included in accounts receivable are amounts invoiced to ML&P for their proportionate share of current Southcentral Power Project (“SPP”) costs, which amounted to $1. 0 million and $ 1.4 million at June 30, 2019 and December 31, 2018, respectively. |
Fuel Stock | g. Fuel Stock Fuel Stock is the weighted average cost of fuel injected into Cook Inlet Natural Gas Storage, LLC (“CINGSA”). Chugach’s fuel balance in storage amounted to $ 10.0 million and $12.0 million at June 30, 2019, and December 31, 2018, respectively. |
Investments In Associated Organizations | h. Investments in Associated Organizations Chugach’s investments in associated organizations are considered equity securities without readily determinable fair values, and as such are measured at cost minus impairment, if any. There were no impairments of these investm ents recognized during the six months ended June 3 0 , 2019 or 2018. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Significant Accounting Policies [Abstract] | |
Reconciliation Of Cash, Cash Equivalents, And Restricted Cash Equivalents | June 30, 2019 December 31, 2018 Cash and cash equivalents $ 2,199,574 $ 6,106,995 Restricted cash equivalents 1,225,258 1,213,974 Restricted cash equivalents included in other property and investments 108,000 108,000 Total cash, cash equivalents and restricted cash equivalents shown in the consolidated statements of cash flows $ 3,532,832 $ 7,428,969 |
Schedule Of Gains And Losses On Trading Securities | Six months ended June 30, 2019 Six months ended June 30, 2018 Net gains (losses) recognized during the period on trading securities $ 98,495 $ (181,257) Less: Net gains (losses) recognized during the period on trading securities sold during the period 98,495 (77,597) Unrealized gains (losses) recognized during the reporting period on trading securities still held at the reporting date $ 0 $ (103,660) |
Revenue From Contracts With C_2
Revenue From Contracts With Customers (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue From Contracts With Customers [Abstract] | |
Schedule Of Disaggregation Of Revenue | The table below details the revenue recognized by customer class and disaggregates base revenue from fuel and purchased power revenue recognized in the Consolidated State ment of Operations for the second quarter of 2019 and 2018 (in millions). Base Rate Sales Revenue Fuel and Purchased Power Revenue Total Revenue 2019 2018 % Variance 2019 2018 % Variance 2019 2018 % Variance Retail $ 28.9 $ 27.9 3.6 % $ 15.2 $ 14.0 8.6 % $ 44.1 $ 41.9 5.3 % Wholesale $ 0.5 $ 0.5 0.0 % $ 0.8 $ 0.8 0.0 % $ 1.3 $ 1.3 0.0 % Economy $ 0.0 $ 0.0 0.0 % $ 0.0 $ 0.0 0.0 % $ 0.0 $ 0.0 0.0 % Total Energy Sales $ 29.4 $ 28.4 3.5 % $ 16.0 $ 14.8 8.1 % $ 45.4 $ 43.2 5.1 % Wheeling $ 0.0 $ 0.0 0.0 % $ 1.5 $ 2.2 (31.8 %) $ 1.5 $ 2.2 (31.8 %) Gas Sales $ 0.0 $ 0.0 0.0 % $ 0.0 $ 0.0 0.0 % $ 0.0 $ 0.0 0.0 % Other $ 0.6 $ 0.6 0.0 % $ 0.0 $ 0.0 0.0 % $ 0.6 $ 0.6 0.0 % Total Miscellaneous $ 0.6 $ 0.6 0.0 % $ 1.5 $ 2.2 (31.8 %) $ 2.1 $ 2.8 (25.0 %) Total Revenue $ 30.0 $ 29.0 3.4 % $ 17.5 $ 17.0 2.9 % $ 47.5 $ 46.0 3.3 % The table below details the revenue recognized by customer class and disaggregates base revenue from fuel and purchased power revenue recognized in the Consolidated State ment of Operations for the six months ended June 30, 2019 and 2018 (in millions). Base Rate Sales Revenue Fuel and Purchased Power Revenue Total Revenue 2019 2018 % Variance 2019 2018 % Variance 2019 2018 % Variance Retail $ 62.0 $ 60.2 3.0 % $ 35.1 $ 33.8 3.8 % $ 97.1 $ 94.0 3.3 % Wholesale $ 1.1 $ 1.0 10.0 % $ 1.7 $ 1.6 6.2 % $ 2.8 $ 2.6 7.7 % Economy $ 0.0 $ 0.0 0.0 % $ 0.0 $ 0.0 0.0 % $ 0.0 $ 0.0 0.0 % Total Energy Sales $ 63.1 $ 61.2 3.1 % $ 36.8 $ 35.4 4.0 % $ 99.9 $ 96.6 3.4 % Wheeling $ 0.0 $ 0.0 0.0 % $ 2.3 $ 4.2 (45.2 %) $ 2.3 $ 4.2 (45.2 %) Gas Sales $ 0.0 $ 0.0 0.0 % $ 0.0 $ 0.0 0.0 % $ 0.0 $ 0.0 0.0 % Other $ 1.2 $ 1.2 0.0 % $ 0.0 $ 0.0 0.0 % $ 1.2 $ 1.2 0.0 % Total Miscellaneous $ 1.2 $ 1.2 0.0 % $ 2.3 $ 4.2 (45.2 %) $ 3.5 $ 5.4 (35.2 %) Total Revenue $ 64.3 $ 62.4 3.0 % $ 39.1 $ 39.6 (1.3 %) $ 103.4 $ 102.0 1.4 % |
Schedule Of Contract Balances | June 30, 2019 December 31, 2018 Contract receivables, included in accounts receivable $ 22,961,370 $ 27,179,031 Contract liabilities 4,579,376 5,196,426 |
Schedule Of Changes In Contract Balances | June 30, 2019 December 31, 2018 Contract liabilities at beginning of period $ 5,196,426 $ 1,581,481 Cash received, excluding amounts recognized as revenue during the period 4,344,789 5,196,426 Revenue recognized that was included in the contract liability balance at the beginning of the period (4,961,839) (1,581,481) Contract liabilities at end of period $ 4,579,376 $ 5,196,426 |
Schedule Of Remaining Performance Obligation | 2019 Credit balances $ 1,655,612 Fuel cost over-recovery 2,923,764 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt [Abstract] | |
Schedule Of Average Commercial Paper Balances Outstanding And Weighted Average Interest Rates | 2019 2018 Average Balance Weighted Average Interest Rate Average Balance Weighted Average Interest Rate $ 45.5 2.75 % $ 56.4 2.26 % |
Schedule Of Debt Issuance Costs Associated With Long-Term Obligations | The following table outlines debt issuance costs associated with long-term obligations, excluding current installments, at June 30, 2019. Long-term Obligations Unamortized Debt Issuance Costs 2011 Series A Bonds $ 178,999,997 $ 1,038,873 2012 Series A Bonds 162,000,000 899,285 2017 Series A Bonds 34,000,000 183,657 2019 Series A Bonds 75,000,000 472,332 2016 CoBank Note 32,376,000 186,362 $ 482,375,997 $ 2,780,509 The following table outlines debt issuance costs associated with long-term obligations, excluding current installments, at December 31, 2018. Long-term Obligations Unamortized Debt Issuance Costs 2011 Series A Bonds $ 189,666,664 $ 1,096,801 2012 Series A Bonds 172,750,000 938,028 2017 Series A Bonds 36,000,000 188,904 2016 CoBank Note 33,972,000 201,514 $ 432,388,664 $ 2,425,247 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Supplemental Cash Flow Information | Six months ended June 30, 2019 Cash paid for amounts included in the measurement of liabilities: Operating cash flows from operating leases $ 111,750 Right-of-use assets obtained in exchange for lease obligations: Operating leases 1,025,106 |
Supplemental Balance Sheet Information | 2019 Operating lease right-of-use assets $ 1,025,106 Operating lease liabilities $ 834,925 Current installments of lease liabilities 190,181 Total operating lease liabilities $ 1,025,106 |
Maturities Associated With Lease Liabilities | June 30, 2019 2019 $ 118,260 2020 225,840 2021 225,000 2022 225,000 2023 225,000 Thereafter 171,000 Total lease payments 1,190,100 Less imputed interest 164,994 Present value of lease liabilities $ 1,025,106 |
Fair Values Of Assets And Lia_2
Fair Values Of Assets And Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Values Of Assets And Liabilities [Abstract] | |
Schedule Of Marketable Securities | December 31, 2018 Total Level 1 Level 2 Level 3 Bond mutual funds $ 6,316,583 $ 6,316,583 $ 0 $ 0 |
Schedule Of Estimated Fair Value Of Long-Term Obligations Included In Financial Statements | Carrying Value Fair Value Level 2 Long-term obligations (including current installments) $ 508,985 $ 537,470 |
Description Of Business (Detail
Description Of Business (Details) | 6 Months Ended |
Jun. 30, 2019miagreement | |
Description Of Business [Line Items] | |
Electrification area | mi | 400 |
Hotel Employees And Restaurant Employees [Member] | |
Description Of Business [Line Items] | |
Number of collective bargaining agreements | 1 |
Expiration date of collective bargaining agreements | Jun. 30, 2021 |
International Brotherhood of Electrical Workers [Member] | |
Description Of Business [Line Items] | |
Number of collective bargaining agreements | 3 |
Percentage of employees belonging to unions | 70.00% |
Expiration date of collective bargaining agreements | Jun. 30, 2021 |
Significant Accounting Polici_4
Significant Accounting Policies (Narrative) (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Significant Accounting Policies [Line Items] | |||
Interest income | $ 91,700 | $ 196,000 | |
Accounts receivable, net | 25,600,024 | $ 31,165,249 | |
Fuel stock | 10,003,214 | 11,952,086 | |
Impairment on investments | 0 | $ 0 | |
ML&P For Fuel And South Central Power Project Costs [Member] | |||
Significant Accounting Policies [Line Items] | |||
Accounts receivable, net | $ 1,000,000 | $ 1,400,000 |
Significant Accounting Polici_5
Significant Accounting Policies (Reconciliation Of Cash, Cash Equivalents, And Restricted Cash Equivalents) (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Significant Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 2,199,574 | $ 6,106,995 | ||
Restricted cash equivalents | 1,225,258 | 1,213,974 | ||
Restricted cash equivalents included in other property and investments | 108,000 | 108,000 | ||
Total cash, cash equivalents and restricted cash equivalents shown in the consolidated statements of cash flows | $ 3,532,832 | $ 7,428,969 | $ 5,995,562 | $ 7,201,759 |
Significant Accounting Polici_6
Significant Accounting Policies (Schedule Of Gains And Losses On Trading Securities) (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Significant Accounting Policies [Abstract] | ||
Net gains (losses) recognized during the period on trading securities | $ 98,495 | $ (181,257) |
Less: Net gains (losses) recognized during the period on trading securities sold during the period | 98,495 | (77,597) |
Unrealized gains (losses) recognized during the reporting period on trading securities still held at the reporting date | $ 0 | $ (103,660) |
Revenue From Contracts With C_3
Revenue From Contracts With Customers (Narrative) (Details) | 6 Months Ended | ||
Jun. 30, 2019USD ($)item | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Disaggregation of Revenue [Line Items] | |||
Contract assets | $ | $ 0 | $ 0 | |
Contract cost | $ | 0 | ||
Energy Sales [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Unbilled revenue | $ | $ 7,936,992 | $ 7,749,823 | |
Energy Sales [Member] | Minimum [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Payment terms | 15 days | ||
Energy Sales [Member] | Maximum [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Payment terms | 30 days | ||
Energy Sales [Member] | Sales Revenue [Member] | Customer Concentration Risk [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Concentration percentage | 96.60% | 94.70% | |
Energy Sales [Member] | Sales Revenue [Member] | Credit Concentration Risk [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Concentration percentage | 0.10% | ||
Retail [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Number of components of monthly billing | item | 4 | ||
Wholesale [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Number of components of monthly billing | item | 4 | ||
Economy [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Number of components of monthly billing | item | 3 | ||
Wheeling [Member] | Sales Revenue [Member] | Customer Concentration Risk [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Concentration percentage | 2.20% | 4.10% | |
Other Miscellaneous [Member] | Sales Revenue [Member] | Customer Concentration Risk [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Concentration percentage | 1.10% | 1.20% |
Revenue From Contracts With C_4
Revenue From Contracts With Customers (Schedule Of Disaggregation Of Revenue) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 47,540,088 | $ 45,988,583 | $ 103,367,326 | $ 102,045,861 |
Variance percent | 3.30% | 1.40% | ||
Energy Sales [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 45,400,000 | 43,200,000 | $ 99,900,000 | 96,600,000 |
Variance percent | 5.10% | 3.40% | ||
Retail [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 44,100,000 | 41,900,000 | $ 97,100,000 | 94,000,000 |
Variance percent | 5.30% | 3.30% | ||
Wholesale [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 1,300,000 | 1,300,000 | $ 2,800,000 | 2,600,000 |
Variance percent | 0.00% | 7.70% | ||
Economy [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 0 | 0 | $ 0 | 0 |
Variance percent | 0.00% | 0.00% | ||
Miscellaneous Sales [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 2,100,000 | 2,800,000 | $ 3,500,000 | 5,400,000 |
Variance percent | (25.00%) | (35.20%) | ||
Wheeling [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 1,500,000 | 2,200,000 | $ 2,300,000 | 4,200,000 |
Variance percent | (31.80%) | (45.20%) | ||
Gas Sales [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 0 | 0 | $ 0 | 0 |
Variance percent | 0.00% | 0.00% | ||
Other Miscellaneous [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 600,000 | 600,000 | $ 1,200,000 | 1,200,000 |
Variance percent | 0.00% | 0.00% | ||
Base Rate Sales Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 30,000,000 | 29,000,000 | $ 64,300,000 | 62,400,000 |
Variance percent | 3.40% | 3.00% | ||
Base Rate Sales Revenue [Member] | Energy Sales [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 29,400,000 | 28,400,000 | $ 63,100,000 | 61,200,000 |
Variance percent | 3.50% | 3.10% | ||
Base Rate Sales Revenue [Member] | Retail [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 28,900,000 | 27,900,000 | $ 62,000,000 | 60,200,000 |
Variance percent | 3.60% | 3.00% | ||
Base Rate Sales Revenue [Member] | Wholesale [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 500,000 | 500,000 | $ 1,100,000 | 1,000,000 |
Variance percent | 0.00% | 10.00% | ||
Base Rate Sales Revenue [Member] | Economy [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 0 | 0 | $ 0 | 0 |
Variance percent | 0.00% | 0.00% | ||
Base Rate Sales Revenue [Member] | Miscellaneous Sales [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 600,000 | 600,000 | $ 1,200,000 | 1,200,000 |
Variance percent | 0.00% | 0.00% | ||
Base Rate Sales Revenue [Member] | Wheeling [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 0 | 0 | $ 0 | 0 |
Variance percent | 0.00% | 0.00% | ||
Base Rate Sales Revenue [Member] | Gas Sales [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 0 | 0 | $ 0 | 0 |
Variance percent | 0.00% | 0.00% | ||
Base Rate Sales Revenue [Member] | Other Miscellaneous [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 600,000 | 600,000 | $ 1,200,000 | 1,200,000 |
Variance percent | 0.00% | 0.00% | ||
Fuel And Purchased Power Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 17,500,000 | 17,000,000 | $ 39,100,000 | 39,600,000 |
Variance percent | 2.90% | (1.30%) | ||
Fuel And Purchased Power Revenue [Member] | Energy Sales [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 16,000,000 | 14,800,000 | $ 36,800,000 | 35,400,000 |
Variance percent | 8.10% | 4.00% | ||
Fuel And Purchased Power Revenue [Member] | Retail [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 15,200,000 | 14,000,000 | $ 35,100,000 | 33,800,000 |
Variance percent | 8.60% | 3.80% | ||
Fuel And Purchased Power Revenue [Member] | Wholesale [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 800,000 | 800,000 | $ 1,700,000 | 1,600,000 |
Variance percent | 0.00% | 6.20% | ||
Fuel And Purchased Power Revenue [Member] | Economy [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 0 | 0 | $ 0 | 0 |
Variance percent | 0.00% | 0.00% | ||
Fuel And Purchased Power Revenue [Member] | Miscellaneous Sales [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 1,500,000 | 2,200,000 | $ 2,300,000 | 4,200,000 |
Variance percent | (31.80%) | (45.20%) | ||
Fuel And Purchased Power Revenue [Member] | Wheeling [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 1,500,000 | 2,200,000 | $ 2,300,000 | 4,200,000 |
Variance percent | (31.80%) | (45.20%) | ||
Fuel And Purchased Power Revenue [Member] | Gas Sales [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 0 | 0 | $ 0 | 0 |
Variance percent | 0.00% | 0.00% | ||
Fuel And Purchased Power Revenue [Member] | Other Miscellaneous [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 0 | $ 0 | $ 0 | $ 0 |
Variance percent | 0.00% | 0.00% |
Revenue From Contracts With C_5
Revenue From Contracts With Customers (Schedule Of Contract Balances) (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Revenue From Contracts With Customers [Abstract] | |||
Contract receivables, included in accounts receivable | $ 22,961,370 | $ 27,179,031 | |
Contract liabilities | $ 4,579,376 | $ 5,196,426 | $ 1,581,481 |
Revenue From Contracts With C_6
Revenue From Contracts With Customers (Schedule Of Changes In Contract Balances) (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Revenue From Contracts With Customers [Abstract] | ||
Contract liabilities at beginning of period | $ 5,196,426 | $ 1,581,481 |
Cash received, excluding amounts recognized as revenue during the period | 4,344,789 | 5,196,426 |
Revenue recognized that was included in the contract liability balance at the beginning of the period | (4,961,839) | (1,581,481) |
Contract liabilities at end of period | $ 4,579,376 | $ 5,196,426 |
Revenue From Contracts With C_7
Revenue From Contracts With Customers (Schedule Of Remaining Performance Obligation) (Details) | Jun. 30, 2019USD ($) |
Credit Balances [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 1,655,612 |
Fuel Cost Over-Recovery [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 2,923,764 |
Regulatory Matters (Details)
Regulatory Matters (Details) $ in Millions | Aug. 07, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Jun. 30, 2019USD ($)entityMW | Dec. 31, 2018 |
Other Commitments [Line Items] | ||||||
Approved percentage increase (decrease) in rates | 0.80% | 2.70% | ||||
Proposed Times interest earned ratio | 1.55 | |||||
Times interest earned ratio | 1.35 | |||||
Estimated increase (decrease) in annual margins upon approval of times interest earned ratio | $ 4 | |||||
Number of utilities participating in RRC | entity | 6 | |||||
Percentage of voters in favor of acquisition | 65.08% | |||||
Percentage of voters against acquisition | 34.92% | |||||
Rate Increases Within 12 Months [Member] | ||||||
Other Commitments [Line Items] | ||||||
Rate increase threshold | 8.00% | |||||
Rate Increases Within 36 Months [Member] | ||||||
Other Commitments [Line Items] | ||||||
Rate increase threshold | 20.00% | |||||
Forecast [Member] | ||||||
Other Commitments [Line Items] | ||||||
Approved percentage increase (decrease) in rates | 0.70% | |||||
Subsequent Event [Member] | ||||||
Other Commitments [Line Items] | ||||||
Approved percentage increase (decrease) in rates | 2.50% | |||||
ML&P Acquisition [Member] | ||||||
Other Commitments [Line Items] | ||||||
Percentage of voters in favor of acquisition | 65.08% | |||||
Percentage of voters against acquisition | 34.92% | |||||
GVEA Memorandum of Understanding [Member] | ML&P Acquisition [Member] | ||||||
Other Commitments [Line Items] | ||||||
Term of services agreement | 3 years | |||||
Available power supply | MW | 5 | |||||
Term of power supply agreement | 5 years | |||||
Revenue | $ 10 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2019 | Jul. 30, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||
Commercial paper | $ 8,000,000 | $ 61,000,000 | |
Balance outstanding | $ 482,375,997 | 432,388,664 | |
Commercial Paper [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Commercial paper repricing term | 1 day | ||
Commercial Paper [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Commercial paper repricing term | 270 days | ||
Revolving Line Of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit, maximum borrowing capacity | $ 50,000,000 | ||
Line of credit, outstanding balance | $ 0 | ||
Line of credit, borrowing rate description | The borrowing rate is calculated using the total rate per annum and may be fixed by NRUCFC. | ||
Line of credit, borrowing rate | 4.00% | 3.75% | |
Period of time the line of credit needs to be paid down for five consecutive days | 12 months | ||
Number of consecutive days debt needs to be paid down to $0 during a twelve month period | 5 days | ||
Line of credit, expiration date | Sep. 29, 2022 | ||
Credit Agreement [Member] | Unsecured Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit, maximum borrowing capacity | $ 150,000,000 | ||
Line of credit, borrowing rate description | one month London Interbank Offered Rate ("LIBOR") plus 90.0 basis points, along with a 10.0 basis points facility fee (based on an A/A2/A unsecured debt rating) | ||
Line of credit, commencement date | Jun. 13, 2016 | ||
Line of credit, expiration date | Jun. 13, 2021 | ||
Facility fee | 0.10% | ||
Credit Agreement [Member] | Unsecured Credit Facility [Member] | LIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Variable rate | 0.90% | ||
2011 Series A Bonds [Member] | Term Loan Facility [Member] | |||
Debt Instrument [Line Items] | |||
Balance outstanding | $ 178,999,997 | $ 189,666,664 | |
2012 Series A Bonds [Member] | Term Loan Facility [Member] | |||
Debt Instrument [Line Items] | |||
Balance outstanding | 162,000,000 | 172,750,000 | |
2016 CoBank Note [Member] | |||
Debt Instrument [Line Items] | |||
Balance outstanding | 35,600,000 | ||
2016 CoBank Note [Member] | Term Loan Facility [Member] | |||
Debt Instrument [Line Items] | |||
Balance outstanding | 32,376,000 | 33,972,000 | |
2017 Series A Bonds [Member] | Term Loan Facility [Member] | |||
Debt Instrument [Line Items] | |||
Balance outstanding | 34,000,000 | $ 36,000,000 | |
2019 Series A Bonds [Member] | Term Loan Facility [Member] | |||
Debt Instrument [Line Items] | |||
Bonds issuance amount | $ 75,000,000 | ||
Bonds commencement payment date | Nov. 15, 2019 | ||
Maturity date | May 15, 2049 | ||
Interest rate | 3.86% | ||
Note commencement date | May 15, 2019 | ||
Average life | 12 years | ||
Balance outstanding | $ 75,000,000 | ||
Subsequent Event [Member] | Unsecured Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit, maximum borrowing capacity | $ 300,000,000 |
Debt (Schedule Of Average Comme
Debt (Schedule Of Average Commercial Paper Balances Outstanding And Weighted Average Interest Rates) (Details) - Commercial Paper [Member] - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Short-term Debt [Line Items] | ||
Average Balance | $ 45.5 | $ 56.4 |
Weighted Average Interest Rate | 2.75% | 2.26% |
Debt (Schedule Of Debt Issuance
Debt (Schedule Of Debt Issuance Costs Associated With Long-Term Obligations) (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Long-term Obligations | $ 482,375,997 | $ 432,388,664 |
Unnamortized Debt Issuance Costs | 2,780,509 | 2,425,247 |
2011 Series A Bonds [Member] | Term Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Obligations | 178,999,997 | 189,666,664 |
Unnamortized Debt Issuance Costs | 1,038,873 | 1,096,801 |
2012 Series A Bonds [Member] | Term Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Obligations | 162,000,000 | 172,750,000 |
Unnamortized Debt Issuance Costs | 899,285 | 938,028 |
2017 Series A Bonds [Member] | Term Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Obligations | 34,000,000 | 36,000,000 |
Unnamortized Debt Issuance Costs | 183,657 | 188,904 |
2019 Series A Bonds [Member] | Term Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Obligations | 75,000,000 | |
Unnamortized Debt Issuance Costs | 472,332 | |
2016 CoBank Note [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Obligations | 35,600,000 | |
2016 CoBank Note [Member] | Term Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Obligations | 32,376,000 | 33,972,000 |
Unnamortized Debt Issuance Costs | $ 186,362 | $ 201,514 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2019USD ($)agreement | |
Lessee, Lease, Description [Line Items] | |
Number of leases | agreement | 3 |
Weighted average remaining lease term | 7 years 1 month 10 days |
Discount rate | 4.24% |
Operating lease cost | $ 452,742 |
Percent of control of leased asset | 100.00% |
Variable payments | $ 2,306,187 |
Maximum [Member] | |
Lessee, Lease, Description [Line Items] | |
Lease term | 25 years |
Minimum [Member] | |
Lessee, Lease, Description [Line Items] | |
Lease term | 1 year |
Accounting Standards Update 2016-02 [Member] | |
Lessee, Lease, Description [Line Items] | |
Impact of adoption | $ 0 |
Leases (Supplemental Cash Flow
Leases (Supplemental Cash Flow Information) (Details) | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 111,750 |
Operating leases | $ 1,025,106 |
Leases (Supplemental Balance Sh
Leases (Supplemental Balance Sheet Information) (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 1,025,106 | $ 0 |
Operating lease liabilities | 834,925 | $ 0 |
Current installments of lease liabilities | 190,181 | |
Total operating lease liabilities | $ 1,025,106 |
Leases (Maturities Associated W
Leases (Maturities Associated With Lease Liabilities) (Details) | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
2019 | $ 118,260 |
2020 | 225,840 |
2021 | 225,000 |
2022 | 225,000 |
2023 | 225,000 |
Thereafter | 171,000 |
Total lease payments | 1,190,100 |
Less imputed interest | 164,994 |
Present value of lease liabilities | $ 1,025,106 |
Fair Values Of Assets And Lia_3
Fair Values Of Assets And Liabilities (Narrative) (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | $ 0 | |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value, liabilities | 0 | $ 0 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value, liabilities | 0 | 0 |
Recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value, assets | 0 | 0 |
Recurring [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value, assets | $ 0 | $ 0 |
Fair Values Of Assets And Lia_4
Fair Values Of Assets And Liabilities (Schedule Of Marketable Securities) (Details) - Bond Mutual Funds [Member] | Dec. 31, 2018USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Investments | $ 6,316,583 |
Level 1 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Investments | 6,316,583 |
Level 2 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Investments | 0 |
Level 3 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Investments | $ 0 |
Fair Values Of Assets And Lia_5
Fair Values Of Assets And Liabilities (Schedule Of Estimated Fair Value Of Long-Term Obligations Included In Financial Statements) (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Carrying Value [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Long-term obligations (including current installments) | $ 508,985 |
Level 2 [Member] | Fair Value [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Long-term obligations (including current installments) | $ 537,470 |
ML&P Acquisition (Details)
ML&P Acquisition (Details) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019USD ($)MW | Dec. 31, 2018 | |
Business Acquisition [Line Items] | ||
Percentage of voters in favor of acquisition | 65.08% | |
Percentage of voters against acquisition | 34.92% | |
Eklutna Power Purchase Agreement [Member] | ||
Business Acquisition [Line Items] | ||
Term of purchase commitment | 35 years | |
ML&P Acquisition [Member] | ||
Business Acquisition [Line Items] | ||
Percentage of voters in favor of acquisition | 65.08% | |
Percentage of voters against acquisition | 34.92% | |
Term to set closing date after approval | 120 days | |
Cash consideration | $ 767.8 | |
Payment in lieu of taxes, agreement period | 50 years | |
ML&P Acquisition [Member] | GVEA Memorandum of Understanding [Member] | ||
Business Acquisition [Line Items] | ||
Term of services agreement | 3 years | |
Available power supply | MW | 5 | |
Term of power supply agreement | 5 years | |
Revenue | $ 10 |
Beluga River Unit (Narrative) (
Beluga River Unit (Narrative) (Details) - Beluga River Unit [Member] $ in Thousands, Mcf in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2019USD ($)miMcf | Dec. 31, 2018Mcf | Dec. 31, 2013USD ($) | |
Business Acquisition [Line Items] | |||
Number of miles from Anchorage | mi | 35 | ||
Working interest ownership percentage | 10.00% | ||
Lifted amount of gas during the period | Mcf | 1.2 | ||
Lifted amount of gas in proven developed reserves | Mcf | 4.5 | ||
Estimated production tax liability, term | 10 years | ||
Fuel reserve study, preiod between estimates | 3 years | ||
Asset retirement obligation, period between estimates | 5 years | ||
ARO estimate | $ | $ 56,900 | $ 33,500 | |
ARO estimate by working interest | $ | $ 5,690 | $ 3,350 | |
Gas reserves | Mcf | 19.6 | ||
Change in prior estimates | Mcf | 3 | ||
Natural Gas, Production, Above Ground Assets [Member] | |||
Business Acquisition [Line Items] | |||
ARO estimate | $ | $ 28,500 | ||
Natural Gas, Production, Below Ground Assets [Member] | |||
Business Acquisition [Line Items] | |||
ARO estimate | $ | $ 28,400 | ||
Municipal Light & Power [Member] | |||
Business Acquisition [Line Items] | |||
Working interest ownership percentage | 56.70% | ||
Hilcorp Alaska, LLC [Member] | |||
Business Acquisition [Line Items] | |||
Working interest ownership percentage | 33.30% |
Environmental Matters (Details)
Environmental Matters (Details) | 6 Months Ended |
Jun. 30, 2019entity | |
Environmental Matters [Abstract] | |
Number of utility owners participating in project | 3 |
Term to complete environmental program | 35 years |
Percentage of water inflows utilized | 100.00% |
Commitments And Contingencies (
Commitments And Contingencies (Narrative) (Details) | 6 Months Ended | |
Jun. 30, 2019USD ($)agreementMcf | Dec. 31, 2018USD ($) | |
Other Commitments [Line Items] | ||
Contingency accruals | $ 0 | |
Patronage capital, capital credit retirements authorized | 4,900,000 | |
Matanuska Electric Association, Inc. [Member] | ||
Other Commitments [Line Items] | ||
Payments to retire patronage capital | 6,100,000 | |
Patronage capital payable | 0 | $ 1,500,000 |
Homer Electric Association, Inc. [Member] | ||
Other Commitments [Line Items] | ||
Payments to retire patronage capital | 2,000,000 | |
Patronage capital payable | $ 1,900,000 | $ 3,900,000 |
Hilcorp Alaska - Cook Inlet [Member] | ||
Other Commitments [Line Items] | ||
Commencement date of long term contract for purchase of gas supply | Jan. 1, 2015 | |
Expiration date of long term contract for purchase of gas supply | Mar. 31, 2018 | |
Estimated amount of gas under contract | Mcf | 60,000,000 | |
Percentage Of Met Natural Gas Needs | 100.00% | |
Number of contract extensions | agreement | 2 | |
Initial extension date of long term contract for purchase of gas supply | Mar. 31, 2023 | |
International Brotherhood of Electrical Workers [Member] | ||
Other Commitments [Line Items] | ||
Percentage of employees belonging to unions | 70.00% | |
Number of collective bargaining agreements | agreement | 3 | |
Expiration date of collective bargaining agreements | Jun. 30, 2021 | |
Hotel Employees And Restaurant Employees [Member] | ||
Other Commitments [Line Items] | ||
Number of collective bargaining agreements | agreement | 1 | |
Expiration date of collective bargaining agreements | Jun. 30, 2021 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Jul. 30, 2019 | Jun. 30, 2019 |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Potential acquisition, maximum purchase price | $ 800,000,000 | |
Potential acquisition, Allowable term | 18 months | |
Revolving Line Of Credit [Member] | ||
Subsequent Event [Line Items] | ||
Line of credit, maximum borrowing capacity | $ 50,000,000 | |
Line of credit, expiration date | Sep. 29, 2022 | |
Unsecured Credit Facility [Member] | Credit Agreement [Member] | ||
Subsequent Event [Line Items] | ||
Line of credit, commencement date | Jun. 13, 2016 | |
Line of credit, maximum borrowing capacity | $ 150,000,000 | |
Line of credit, expiration date | Jun. 13, 2021 | |
Unsecured Credit Facility [Member] | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Line of credit, maximum borrowing capacity | $ 300,000,000 | |
Unsecured Credit Facility [Member] | Subsequent Event [Member] | First Amendment to the Credit Agreement [Member] | ||
Subsequent Event [Line Items] | ||
Line of credit, commencement date | Jul. 30, 2019 | |
Line of credit, maximum borrowing capacity | $ 300,000,000 | |
Line of credit, expiration date | Jul. 30, 2024 |