6 unchanged sentences
In addition, OTP procures natural gas as a fuel source for its combustion turbine peaking facilities.
−Removed: OTP's exposure to price risk for these commodities is largely mitigated by the current ratemaking process and regulatory framework, which generally allows recovery of purchased power and fuel costs from our electric customers.
+Added: OTP's exposure to price risk for these commodities is largely mitigated by the current rate-making process and regulatory framework, which generally allows recovery of purchased power and fuel costs from our electric customers.
OTP, where prudent, seeks to further manage its exposure to commodity price variability and reduce volatility in prices for its retail customers through the use of derivative instruments, primarily financial swap agreements.
1 unchanged sentence
As of December 31, 2025, OTP was party to financial swap agreements with an aggregate notional amount of 310,600 megawatt-hours of electricity with various settlement dates throughout 2026.
−Removed: As of December 31, 2024, the aggregate fair value of these instruments was $2.0 million, reflected as a liability on our consolidated balance sheets.
+Added: As of December 31, 2025, the aggregate fair value of these instruments was a net $2.6 million liability.
Holding other variables constant, a ten percent change in energy prices would have had an approximate $1.5 million impact on the fair value of these instruments.
1 unchanged sentence
We manage commodity price risk by attempting to pass changes in the cost of these input materials through to our customers.
−Removed: If our efforts to manage commodity price risk are unsuccessful, the operating revenues and earnings of our Manufacturing and Plastics segment could be impacted.
+Added: If our efforts to manage commodity price risk are unsuccessful, the operating revenues and earnings of our Manufacturing and Plastics segments could be impacted.
We do not engage in any hedging activities within our Manufacturing and Plastics segments to manage our commodity price risk.
Interest Rate Risk
−Removed: Our exposure to interest rate risk arises from our outstanding short-term debt which is subject to variable rates of interest based on benchmark interest rates, primarily SOFR, and our cash equivalent investments, which earn income at a rate that fluctuates daily, based on changes in U.S.
+Added: Our exposure to interest rate risk arises from our outstanding short-term debt which is subject to variable rates of interest based on benchmark interest rates, primarily the secured overnight financing rate (SOFR), and our cash equivalent investments, which earn income at a rate that fluctuates daily, based on changes in U.S.
treasury rates.
2 unchanged sentences
As of December 31, 2025 and 2024, we had $372.4 million and $282.0 million invested in cash equivalent investments.
−Removed: Holding other variables constant, a 100 basis point change in the average interest rates during 2024 would have had an approximate $2.3 million impact to our investment income in 2024, based on our average outstanding investment balance during the year.
+Added: Holding other variables constant, a 100-basis point change in the average interest rates during 2025 would have had an approximate $2.8 million impact on our investment income in 2025, based on our average investment balance during the year.
All of our outstanding long-term debt obligations as of December 31, 2025 and 2024 had fixed interest rates and were not subject to material interest rate risk.
2 unchanged sentences
We maintain a ratio of fixed-rate debt to total debt within a certain range.
−Removed: It is our policy to enter into interest rate transactions and other financial
−Removed: instruments only to the extent considered necessary to meet our stated objectives.
+Added: It is our policy to enter into interest rate transactions and other financial instruments only to the extent considered necessary to meet our stated objectives.
We do not enter into interest rate transactions for speculative or trading purposes.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.