Laserfiche WebLink
Minnesota Municipal Power Agency <br />Notes to Financial Statements <br />December 31, 2022 and 2021 <br />Note 1: Organization and Significant Accounting Policies - Continued <br />Deferred Inflows of Resources Other <br />Deferred inflows of resources — other includes the amount accrued by the Agency for future major <br />maintenance of its combustion turbine and steam turbine generation resources. As permitted by the <br />application of GASB Codification Section Re 10, Regulated Operations, the Agency recognizes major <br />maintenance expense for combustion turbine and steam turbine generation resources both on a <br />per -start basis and over time. These expenses are accrued as a deferred inflow of resources. The <br />accrued amount is reduced when the Agency performs major maintenance on its combustion turbine <br />and steam turbine generation resources. <br />Deferred inflows of resources — other also includes the amount accrued by the Agency related to the <br />operation of its Energy Adjustment Clause. <br />Unamortized Debt Premium <br />The Agency's debt premium is amortized over the repayment period of the related issues using the <br />straight-line method, which approximates the effective -interest method. <br />Cash and Cash Equivalents <br />For purposes of the statements of cash flows, cash equivalents are cash and equivalents and investments <br />having an initial maturity of three months or less when purchased. <br />Power Sales Receivables <br />Power sales receivables represent power sales for the period between the last billing date and the end of <br />the period that are accrued in the period earned. <br />Fuel Inventory and Plant Inventory — Spares <br />Fuel inventory and plant inventory — spares are valued on a cost basis, using the first -in, first -out <br />(FIFO) method, which does not exceed market. <br />Deferred Outflows of Resources <br />Deferred outflows of resources include the unamortized difference between reacquisition price and net <br />carrying amount related to the Agency's bond refunding activities. The deferred outflows of resources <br />related to the bond refunding activities will be amortized through 2034. Deferred outflows of resources <br />also include the offsetting deferral amount to reflect the effectiveness of the Agency's hedging derivative <br />instruments. <br />17 <br />155 <br />