Fair Value Measurements

6 Months Ended

Jun. 30, 2025

The fair value hierarchy gives the highest priority to quoted prices in active markets (Level 1) and the lowest priority to unobservable data (Level 3). In some cases, the inputs used to measure fair value might fall in different levels of the fair value hierarchy. The lowest level input that is significant to a fair value measurement in its entirety determines the applicable level in the fair value hierarchy. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgment, considering factors specific to the asset or liability.

The following tables summarize our financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2025 and December 31, 2024:


			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
	June 30,		Assets		Inputs		Inputs
	2025		(Level 1)		(Level 2)		(Level 3)
	(in thousands)
Nuclear decommissioning trust (1)	$	98,113	$	98,113	$	—	$	—
Nuclear decommissioning trust - net asset value (1)(2)		213,968		—		—		—
Unrestricted investments and other (3)		58		—		58		—
Derivatives - gas and power (4)		14,985		6,783		36		8,166
Total financial assets	$	327,124	$	104,896	$	94	$	8,166

Derivatives - gas and power (4)	$	2,890	$	—	$	2,890	$	—
Total financial liabilities	$	2,890	$	—	$	2,890	$	—


			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
	December 31,		Assets		Inputs		Inputs
	2024		(Level 1)		(Level 2)		(Level 3)
	(in thousands)
Nuclear decommissioning trust (1)	$	93,648	$	93,648	$	—	$	—
Nuclear decommissioning trust - net asset value (1)(2)		198,993		—		—		—
Unrestricted investments and other (3)		108		—		108		—
Derivatives - gas and power (4)		8,764		—		6,448		2,316
Total financial assets	$	301,513	$	93,648	$	6,556	$	2,316

Derivatives - gas and power (4)	$	26,753	$	26,054	$	699	$	—
Total financial liabilities	$	26,753	$	26,054	$	699	$	—

(1)

For additional information about our nuclear decommissioning trust, see Note 4—Investments below.

(2)

Nuclear decommissioning trust includes investments measured at net asset value per share (or its equivalent) as a practical expedient and these investments have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in our Condensed Consolidated Balance Sheet.

(3)

Unrestricted investments and other includes investments that are related to equity securities.

(4)

Derivatives - gas and power represent natural gas futures contracts (Level 1 and Level 2) and financial transmission rights (Level 3). Level 1 are indexed against NYMEX. Level 2 are valued by ACES using observable market inputs for similar transactions. Level 3 are valued by ACES using unobservable market inputs, including situations where there is little market activity. Sensitivity in the market price of financial transmission rights could impact the fair value. For additional information about our derivative financial instruments, see Note 1 of the Notes to Consolidated Financial Statements in our 2024 Annual Report on Form 10-K.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

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+ Details

OLD DOMINION ELECTRIC COOPERATIVE 10-Q