☒ | QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
New Hampshire | 02-0381573 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
6 Liberty Lane West, Hampton, New Hampshire | 03842-1720 | |
(Address of principal executive office) | (Zip Code) |
Title of each class | Trading Symbol | Name of each exchange of which registered | ||
Common Stock, no par value | UTL | New York Stock Exchange |
Large accelerated filer | ☒ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☐ | |||||
Emerging growth company | ||||||
☐ | ||||||
Class | Outstanding at October | |
Common Stock, |
Page No. | ||||||||||
2 | ||||||||||
Part I. Financial Information | ||||||||||
Item 1. | ||||||||||
21 | ||||||||||
22-23 | ||||||||||
24 | ||||||||||
25-26 | ||||||||||
Item 2. | ||||||||||
Item 3. | ||||||||||
Item 4. | ||||||||||
Part II. Other Information | ||||||||||
Item 1. | Legal Proceedings | 54 | ||||||||
Item 1A. | Risk Factors | |||||||||
Item 2. | ||||||||||
Item 3. | Defaults Upon Senior Securities | Inapplicable | ||||||||
Item 4. | Mine Safety Disclosures | Inapplicable | ||||||||
Item | ||||||||||
Item 6. | Exhibits | 55-57 | ||||||||
i) | Unitil Energy Systems, Inc. (Unitil Energy), which provides electric service in the southeastern seacoast and state capital regions of New Hampshire, including the capital city of |
ii) | Fitchburg Gas and Electric Light Company (Fitchburg), which provides both electric and |
iii) | Northern Utilities, Inc. (Northern Utilities), which provides |
Three Months Ended September 30, 2020 ($ millions) | ||||||||||||||||
Gas | Electric | Non- Regulated and Other | Total | |||||||||||||
Total Operating Revenue | $ | 27.5 | $ | 59.9 | $ | — | $ | 87.4 | ||||||||
Less: Cost of Sales | (9.5 | ) | (35.4 | ) | — | (44.9 | ) | |||||||||
Less: Depreciation and Amortization | (7.5 | ) | (6.0 | ) | (0.2 | ) | (13.7 | ) | ||||||||
GAAP Gross Margin | 10.5 | 18.5 | (0.2 | ) | 28.8 | |||||||||||
Depreciation and Amortization | 7.5 | 6.0 | 0.2 | 13.7 | ||||||||||||
Adjusted Gross Margin | $ | 18.0 | $ | 24.5 | $ | — | $ | 42.5 | ||||||||
Three Months Ended September 30, 2019 ($ millions) | ||||||||||||||||
Gas | Electric | Non- Regulated and Other | Total | |||||||||||||
Total Operating Revenue | $ | 24.9 | $ | 60.4 | $ | — | $ | 85.3 | ||||||||
Less: Cost of Sales | (6.2 | ) | (35.3 | ) | — | (41.5 | ) | |||||||||
Less: Depreciation and Amortization | (7.0 | ) | (5.6 | ) | (0.2 | ) | (12.8 | ) | ||||||||
GAAP Gross Margin | 11.7 | 19.5 | (0.2 | ) | 31.0 | |||||||||||
Depreciation and Amortization | 7.0 | 5.6 | 0.2 | 12.8 | ||||||||||||
Adjusted Gross Margin | $ | 18.7 | $ | 25.1 | $ | — | $ | 43.8 | ||||||||
Nine Months Ended September 30, 2020 ($ millions) | ||||||||||||||||
Gas | Electric | Non- Regulated and Other | Total | |||||||||||||
Total Operating Revenue | $ | 131.4 | $ | 170.3 | $ | — | $ | 301.7 | ||||||||
Less: Cost of Sales | (48.1 | ) | (100.3 | ) | — | (148.4 | ) | |||||||||
Less: Depreciation and Amortization | (22.3 | ) | (17.8 | ) | (0.6 | ) | (40.7 | ) | ||||||||
GAAP Gross Margin | 61.0 | 52.2 | (0.6 | ) | 112.6 | |||||||||||
Depreciation and Amortization | 22.3 | 17.8 | 0.6 | 40.7 | ||||||||||||
Adjusted Gross Margin | $ | 83.3 | $ | 70.0 | $ | — | $ | 153.3 | ||||||||
Nine Months Ended September 30, 2019 ($ millions) | ||||||||||||||||
Gas | Electric | Non- Regulated and Other | Total | |||||||||||||
Total Operating Revenue | $ | 143.9 | $ | 177.0 | $ | 0.9 | $ | 321.8 | ||||||||
Less: Cost of Sales | (58.4 | ) | (106.4 | ) | — | (164.8 | ) | |||||||||
Less: Depreciation and Amortization | (21.3 | ) | (17.0 | ) | (0.7 | ) | (39.0 | ) | ||||||||
GAAP Gross Margin | 64.2 | 53.6 | 0.2 | 118.0 | ||||||||||||
Depreciation and Amortization | 21.3 | 17.0 | 0.7 | 39.0 | ||||||||||||
Adjusted Gross Margin | $ | 85.5 | $ | 70.6 | $ | 0.9 | $ | 157.0 | ||||||||
Therm Sales (millions) | ||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
2019 | 2018 | Change | % Change | 2019 | 2018 | Change | % Change | |||||||||||||||||||||||||
Residential | 2.6 | 2.5 | 0.1 | 4.0 | % | 36.2 | 35.9 | 0.3 | 0.8 | % | ||||||||||||||||||||||
Commercial / Industrial | 24.9 | 23.9 | 1.0 | 4.2 | % | 136.2 | 132.3 | 3.9 | 2.9 | % | ||||||||||||||||||||||
Total | 27.5 | 26.4 | 1.1 | 4.2 | % | 172.4 | 168.2 | 4.2 | 2.5 | % | ||||||||||||||||||||||
Therm Sales (millions) | ||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
2020 | 2019 | Change | % Change | 2020 | 2019 | Change | % Change | |||||||||||||||||||||||||
Residential | 2.7 | 2.6 | 0.1 | 3.8 | % | 34.2 | 36.2 | (2.0 | ) | (5.5 | %) | |||||||||||||||||||||
Commercial / Industrial | 23.3 | 24.9 | (1.6 | ) | (6.4 | %) | 125.9 | 136.2 | (10.3 | ) | (7.6 | %) | ||||||||||||||||||||
Total | 26.0 | 27.5 | (1.5 | ) | (5.5 | %) | 160.1 | 172.4 | (12.3 | ) | (7.1 | %) | ||||||||||||||||||||
Gas Operating Revenues and Sales Margin (millions) | ||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
2019 | 2018 | $ Change | % Change | 2019 | 2018 | $ Change | % Change | |||||||||||||||||||||||||
Gas Operating Revenue: | ||||||||||||||||||||||||||||||||
Residential | $ | 8.9 | $ | 9.2 | $ | (0.3 | ) | (3.3 | %) | $ | 57.8 | $ | 58.9 | $ | (1.1 | ) | (1.9 | %) | ||||||||||||||
Commercial / Industrial | 16.0 | 16.5 | (0.5 | ) | (3.0 | %) | 86.1 | 88.5 | (2.4 | ) | (2.7 | %) | ||||||||||||||||||||
Total Gas Operating Revenue | $ | 24.9 | $ | 25.7 | $ | (0.8 | ) | (3.1 | %) | $ | 143.9 | $ | 147.4 | $ | (3.5 | ) | (2.4 | %) | ||||||||||||||
Cost of Gas Sales | $ | 6.2 | $ | 8.1 | $ | (1.9 | ) | (23.5 | %) | $ | 58.4 | $ | 67.0 | $ | (8.6 | ) | (12.8 | %) | ||||||||||||||
Gas Sales Margin | $ | 18.7 | $ | 17.6 | $ | 1.1 | 6.2 | % | $ | 85.5 | $ | 80.4 | $ | 5.1 | 6.3 | % | ||||||||||||||||
Gas Operating Revenues and Gas Adjusted Gross Margin ($ millions) | ||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
2020 | 2019 | $ Change | % Change | 2020 | 2019 | $ Change | % Change | |||||||||||||||||||||||||
Gas Operating Revenue: | ||||||||||||||||||||||||||||||||
Residential | $ | 10.2 | $ | 8.9 | $ | 1.3 | 14.6 | % | $ | 54.3 | $ | 57.8 | $ | (3.5 | ) | (6.1 | %) | |||||||||||||||
Commercial / Industrial | 17.3 | 16.0 | 1.3 | 8.1 | % | 77.1 | 86.1 | (9.0 | ) | (10.5 | %) | |||||||||||||||||||||
Total Gas Operating Revenue | $ | 27.5 | $ | 24.9 | $ | 2.6 | 10.4 | % | $ | 131.4 | $ | 143.9 | $ | (12.5 | ) | (8.7 | %) | |||||||||||||||
Cost of Gas Sales | $ | 9.5 | $ | 6.2 | $ | 3.3 | 53.2 | % | $ | 48.1 | $ | 58.4 | $ | (10.3 | ) | (17.6 | %) | |||||||||||||||
Gas Adjusted Gross Margin | $ | 18.0 | $ | 18.7 | $ | (0.7 | ) | (3.7 | %) | $ | 83.3 | $ | 85.5 | $ | (2.2 | ) | (2.6 | %) | ||||||||||||||
kWh Sales (millions) | ||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
2019 | 2018 | Change | % Change | 2019 | 2018 | Change | % Change | |||||||||||||||||||||||||
Residential | 180.9 | 195.0 | (14.1 | ) | (7.2 | %) | 498.3 | 527.8 | (29.5 | ) | (5.6 | %) | ||||||||||||||||||||
Commercial / Industrial | 257.7 | 268.3 | (10.6 | ) | (4.0 | %) | 718.5 | 755.9 | (37.4 | ) | (4.9 | %) | ||||||||||||||||||||
Total | 438.6 | 463.3 | (24.7 | ) | (5.3 | %) | 1,216.8 | 1,283.7 | (66.9 | ) | (5.2 | %) | ||||||||||||||||||||
kWh Sales (millions) | ||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
2020 | 2019 | Change | % Change | 2020 | 2019 | Change | % Change | |||||||||||||||||||||||||
Residential | 207.0 | 180.9 | 26.1 | 14.4 | % | 539.4 | 498.3 | 41.1 | 8.2 | % | ||||||||||||||||||||||
Commercial / Industrial | 250.4 | 257.7 | (7.3 | ) | (2.8 | %) | 692.4 | 718.5 | (26.1 | ) | (3.6 | %) | ||||||||||||||||||||
Total | 457.4 | 438.6 | 18.8 | 4.3 | % | 1,231.8 | 1,216.8 | 15.0 | 1.2 | % | ||||||||||||||||||||||
Electric Operating Revenues and Sales Margin (millions) | ||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
2019 | 2018 | $ Change | % Change | 2019 | 2018 | $ Change | % Change | |||||||||||||||||||||||||
Electric Operating Revenue: | ||||||||||||||||||||||||||||||||
Residential | $ | 34.4 | $ | 35.5 | $ | (1.1 | ) | (3.1 | %) | $ | 101.9 | $ | 95.7 | $ | 6.2 | 6.5 | % | |||||||||||||||
Commercial / Industrial | 26.0 | 25.9 | 0.1 | 0.4 | % | 75.1 | 71.9 | 3.2 | 4.5 | % | ||||||||||||||||||||||
Total Electric Operating Revenue | $ | 60.4 | $ | 61.4 | $ | (1.0 | ) | (1.6 | %) | $ | 177.0 | $ | 167.6 | $ | 9.4 | 5.6 | % | |||||||||||||||
Cost of Electric Sales | $ | 35.3 | $ | 35.5 | $ | (0.2 | ) | (0.6 | %) | $ | 106.4 | $ | 97.1 | $ | 9.3 | 9.6 | % | |||||||||||||||
Electric Sales Margin | $ | 25.1 | $ | 25.9 | $ | (0.8 | ) | (3.1 | %) | $ | 70.6 | $ | 70.5 | $ | 0.1 | 0.1 | % | |||||||||||||||
Electric Operating Revenues and Electric Adjusted Gross Margin ($ millions) | ||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
2020 | 2019 | $ Change | % Change | 2020 | 2019 | $ Change | % Change | |||||||||||||||||||||||||
Electric Operating Revenue: | ||||||||||||||||||||||||||||||||
Residential | $ | 36.1 | $ | 34.4 | $ | 1.7 | 4.9 | % | $ | 102.3 | $ | 101.9 | $ | 0.4 | 0.4 | % | ||||||||||||||||
Commercial / Industrial | 23.8 | 26.0 | (2.2 | ) | (8.5 | %) | 68.0 | 75.1 | (7.1 | ) | (9.5 | %) | ||||||||||||||||||||
Total Electric Operating Revenue | $ | 59.9 | $ | 60.4 | $ | (0.5 | ) | (0.8 | %) | $ | 170.3 | $ | 177.0 | $ | (6.7 | ) | (3.8 | %) | ||||||||||||||
Cost of Electric Sales | $ | 35.4 | $ | 35.3 | $ | 0.1 | 0.3 | % | $ | 100.3 | $ | 106.4 | $ | (6.1 | ) | (5.7 | %) | |||||||||||||||
Electric Adjusted Gross Margin | $ | 24.5 | $ | 25.1 | $ | (0.6 | ) | (2.4 | %) | $ | 70.0 | $ | 70.6 | $ | (0.6 | ) | (0.8 | %) | ||||||||||||||
Other Revenue (000’s) | ||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
2019 | 2018 | $ Change | % Change | 2019 | 2018 | $ Change | % Change | |||||||||||||||||||||||||
Other | $ | — | $ | 1.1 | $ | (1.1 | ) | N/M | $ | 0.9 | $ | 3.5 | $ | (2.6 | ) | (74.3 | %) | |||||||||||||||
Total Other Revenue | $ | — | $ | 1.1 | $ | (1.1 | ) | N/M | $ | 0.9 | $ | 3.5 | $ | (2.6 | ) | (74.3 | %) | |||||||||||||||
Interest Expense, Net | Three Months | Nine Months | ||||||||||||||||||||||
($ millions) | Ended September 30, | Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | Change | 2020 | 2019 | Change | |||||||||||||||||||
Interest Expense | ||||||||||||||||||||||||
Long-term Debt | $ | 6.0 | $ | 5.7 | $ | 0.3 | $ | 18.1 | $ | 17.0 | $ | 1.1 | ||||||||||||
Short-term Debt | 0.3 | 0.6 | (0.3 | ) | 1.3 | 2.4 | (1.1 | ) | ||||||||||||||||
Regulatory Liabilities | 0.1 | 0.2 | (0.1 | ) | 0.2 | 0.5 | (0.3 | ) | ||||||||||||||||
Subtotal Interest Expense | 6.4 | 6.5 | (0.1 | ) | 19.6 | 19.9 | (0.3 | ) | ||||||||||||||||
Interest (Income) | ||||||||||||||||||||||||
Regulatory Assets | (0.2 | ) | (0.2 | ) | — | (0.6 | ) | (0.6 | ) | — | ||||||||||||||
AFUDC (1) and Other | (0.6 | ) | (0.5 | ) | (0.1 | ) | (1.3 | ) | (1.4 | ) | 0.1 | |||||||||||||
Subtotal Interest (Income) | (0.8 | ) | (0.7 | ) | (0.1 | ) | (1.9 | ) | (2.0 | ) | 0.1 | |||||||||||||
Total Interest Expense, Net | $ | 5.6 | $ | 5.8 | $ | (0.2 | ) | $ | 17.7 | $ | 17.9 | $ | (0.2 | ) | ||||||||||
Interest Expense, Net (Millions) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2019 | 2018 | Change | 2019 | 2018 | Change | |||||||||||||||||||
Interest Expense | ||||||||||||||||||||||||
Long-term Debt | $ | 5.7 | $ | 5.7 | $ | — | $ | 17.0 | $ | 17.3 | $ | (0.3 | ) | |||||||||||
Short-term Debt | 0.6 | 0.7 | (0.1 | ) | 2.4 | 1.6 | 0.8 | |||||||||||||||||
Regulatory Liabilities | 0.2 | 0.2 | — | 0.5 | 0.5 | — | ||||||||||||||||||
Subtotal Interest Expense | 6.5 | 6.6 | (0.1 | ) | 19.9 | 19.4 | 0.5 | |||||||||||||||||
Interest (Income) | ||||||||||||||||||||||||
Regulatory Assets | (0.2 | ) | (0.2 | ) | — | (0.6 | ) | (0.6 | ) | — | ||||||||||||||
AFUDC (1) and Other | (0.5 | ) | (0.4 | ) | (0.1 | ) | (1.4 | ) | (0.9 | ) | (0.5 | ) | ||||||||||||
Subtotal Interest (Income) | (0.7 | ) | (0.6 | ) | (0.1 | ) | (2.0 | ) | (1.5 | ) | (0.5 | ) | ||||||||||||
Total Interest Expense, Net | $ | 5.8 | $ | 6.0 | $ | (0.2 | ) | $ | 17.9 | $ | 17.9 | $ | — | |||||||||||
(1) | AFUDC – Allowance for Funds Used During Construction. |
Revolving Credit Facility ($ millions) | ||||||||||||
September 30, | December 31, | |||||||||||
2019 | 2018 | 2018 | ||||||||||
Limit | $ | 120.0 | $ | 120.0 | $ | 120.0 | ||||||
Short-Term Borrowings Outstanding | 49.2 | 69.1 | 82.8 | |||||||||
Letter of Credit Outstanding | 0.1 | — | — | |||||||||
Available | $ | 70.7 | $ | 50.9 | $ | 37.2 | ||||||
Revolving Credit Facility ($ millions) | ||||||||||||
Sept 30, | December 31, | |||||||||||
2020 | 2019 | 2019 | ||||||||||
Limit | $ | 120.0 | $ | 120.0 | $ | 120.0 | ||||||
Short-Term Borrowings Outstanding | 17.3 | 49.2 | 58.6 | |||||||||
Letter of Credit Outstanding | 0.1 | 0.1 | 0.1 | |||||||||
Available | $ | 102.6 | $ | 70.7 | $ | 61.3 | ||||||
Employees Covered | CBA Expiration | ||||||||||
Fitchburg | 05/31/2022 | ||||||||||
Northern Utilities NH Division | 06/ | ||||||||||
Northern Utilities ME Division | 36 | 03/31/2021 | |||||||||
Granite State | 03/31/2021 | ||||||||||
Unitil Energy | 05/31/2023 | ||||||||||
Unitil Service | 5 | 05/31/2023 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Operating Revenues | ||||||||||||||||
Gas | $ | 24.9 | $ | 25.7 | $ | 143.9 | $ | 147.4 | ||||||||
Electric | 60.4 | 61.4 | 177.0 | 167.6 | ||||||||||||
Other | — | 1.1 | 0.9 | 3.5 | ||||||||||||
Total Operating Revenues | 85.3 | 88.2 | 321.8 | 318.5 | ||||||||||||
Operating Expenses | ||||||||||||||||
Cost of Gas Sales | 6.2 | 8.1 | 58.4 | 67.0 | ||||||||||||
Cost of Electric Sales | 35.3 | 35.5 | 106.4 | 97.1 | ||||||||||||
Operation and Maintenance | 15.5 | 16.4 | 49.9 | 51.5 | ||||||||||||
Depreciation and Amortization | 12.8 | 12.4 | 39.0 | 37.4 | ||||||||||||
Taxes Other Than Income Taxes | 5.5 | 5.5 | 17.0 | 16.5 | ||||||||||||
Total Operating Expenses | 75.3 | 77.9 | 270.7 | 269.5 | ||||||||||||
Operating Income | 10.0 | 10.3 | 51.1 | 49.0 | ||||||||||||
Interest Expense, Net | 5.8 | 6.0 | 17.9 | 17.9 | ||||||||||||
Other Expense (Income), Net | 1.0 | 1.1 | (9.8 | ) | 4.1 | |||||||||||
Income Before Income Taxes | 3.2 | 3.2 | 43.0 | 27.0 | ||||||||||||
Provision for Income Taxes | 0.9 | 0.4 | 10.2 | 5.0 | ||||||||||||
Net Income | $ | 2.3 | $ | 2.8 | $ | 32.8 | $ | 22.0 | ||||||||
Net Income Per Common Share (Basic and Diluted) | $ | 0.15 | $ | 0.19 | $ | 2.20 | $ | 1.49 | ||||||||
Weighted Average Common Shares Outstanding – (Basic and Diluted) | 14.9 | 14.8 | 14.9 | 14.8 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Operating Revenues | ||||||||||||||||
Gas | $ | 27.5 | $ | 24.9 | $ | 131.4 | $ | 143.9 | ||||||||
Electric | 59.9 | 60.4 | 170.3 | 177.0 | ||||||||||||
Other | — | — | — | 0.9 | ||||||||||||
Total Operating Revenues | 87.4 | 85.3 | 301.7 | 321.8 | ||||||||||||
Operating Expenses | ||||||||||||||||
Cost of Gas Sales | 9.5 | 6.2 | 48.1 | 58.4 | ||||||||||||
Cost of Electric Sales | 35.4 | 35.3 | 100.3 | 106.4 | ||||||||||||
Operation and Maintenance | 16.1 | 15.5 | 48.6 | 49.9 | ||||||||||||
Depreciation and Amortization | 13.7 | 12.8 | 40.7 | 39.0 | ||||||||||||
Taxes Other Than Income Taxes | 5.3 | 5.5 | 17.9 | 17.0 | ||||||||||||
Total Operating Expenses | 80.0 | 75.3 | 255.6 | 270.7 | ||||||||||||
Operating Income | 7.4 | 10.0 | 46.1 | 51.1 | ||||||||||||
Interest Expense, Net | 5.6 | 5.8 | 17.7 | 17.9 | ||||||||||||
Other Expense (Income), Net | 1.1 | 1.0 | 4.0 | (9.8 | ) | |||||||||||
Income Before Income Taxes | 0.7 | 3.2 | 24.4 | 43.0 | ||||||||||||
Provision for Income Taxes | 0.4 | 0.9 | 5.8 | 10.2 | ||||||||||||
Net Income | $ | 0.3 | $ | 2.3 | $ | 18.6 | $ | 32.8 | ||||||||
Net Income Per Common Share (Basic and Diluted) | $ | 0.02 | $ | 0.15 | $ | 1.25 | $ | 2.20 | ||||||||
Weighted Average Common Shares Outstanding – (Basic and Diluted) | 14.9 | 14.9 | 14.9 | 14.9 |
September 30, | December 31, | |||||||||||
2019 | 2018 | 2018 | ||||||||||
ASSETS: | ||||||||||||
Current Assets | ||||||||||||
Cash and Cash Equivalents | $ | 7.3 | $ | 6.3 | $ | 7.8 | ||||||
Accounts Receivable, Net | 39.4 | 52.3 | 66.8 | |||||||||
Accrued Revenue | 35.3 | 36.0 | 54.7 | |||||||||
Exchange Gas Receivable | 8.6 | 10.1 | 8.1 | |||||||||
Refundable Taxes | 2.9 | — | 0.5 | |||||||||
Gas Inventory | 0.8 | 0.9 | 0.8 | |||||||||
Materials and Supplies | 7.7 | 7.2 | 7.0 | |||||||||
Prepayments and Other | 5.4 | 7.8 | 6.5 | |||||||||
Total Current Assets | 107.4 | 120.6 | 152.2 | |||||||||
Utility Plant: | ||||||||||||
Gas | 783.2 | 712.7 | 760.6 | |||||||||
Electric | 514.8 | 485.6 | 500.1 | |||||||||
Common | 61.6 | 82.1 | 83.1 | |||||||||
Construction Work in Progress | 72.9 | 68.4 | 25.5 | |||||||||
Utility Plant | 1,432.5 | 1,348.8 | 1,369.3 | |||||||||
Less: Accumulated Depreciation | 348.6 | 326.5 | 332.5 | |||||||||
Net Utility Plant | 1,083.9 | 1,022.3 | 1,036.8 | |||||||||
Other Noncurrent Assets: | ||||||||||||
Regulatory Assets | 98.7 | 111.6 | 99.0 | |||||||||
Operating Lease Right of Use Assets | 4.2 | — | — | |||||||||
Other Assets | 15.5 | 10.0 | 10.3 | |||||||||
Total Other Noncurrent Assets | 118.4 | 121.6 | 109.3 | |||||||||
TOTAL ASSETS | $ | 1,309.7 | $ | 1,264.5 | $ | 1,298.3 | ||||||
September 30, | December 31, | |||||||||||
2020 | 2019 | 2019 | ||||||||||
ASSETS: | ||||||||||||
Current Assets | ||||||||||||
Cash and Cash Equivalents | $ | 8.2 | $ | 7.3 | $ | 5.2 | ||||||
Accounts Receivable, Net | 48.6 | 39.4 | 55.1 | |||||||||
Accrued Revenue | 39.1 | 35.3 | 50.0 | |||||||||
Exchange Gas Receivable | 6.5 | 8.6 | 6.1 | |||||||||
Gas Inventory | 0.6 | 0.8 | 0.8 | |||||||||
Taxes Refundable | 0.1 | 2.9 | — | |||||||||
Materials and Supplies | 8.5 | 7.7 | 7.9 | |||||||||
Prepayments and Other | 5.7 | 5.4 | 5.8 | |||||||||
Total Current Assets | 117.3 | 107.4 | 130.9 | |||||||||
Utility Plant: | ||||||||||||
Gas | 876.8 | 783.2 | 837.7 | |||||||||
Electric | 545.9 | 514.8 | 529.7 | |||||||||
Common | 63.3 | 61.6 | 62.7 | |||||||||
Construction Work in Progress | 101.0 | 72.9 | 37.4 | |||||||||
Utility Plant | 1,587.0 | 1,432.5 | 1,467.5 | |||||||||
Less: Accumulated Depreciation | 401.7 | 348.6 | 356.0 | |||||||||
Net Utility Plant | 1,185.3 | 1,083.9 | 1,111.5 | |||||||||
Other Noncurrent Assets: | ||||||||||||
Regulatory Assets | 104.4 | 98.7 | 112.0 | |||||||||
Operating Lease Right of Use Assets | 5.6 | 4.2 | 4.0 | |||||||||
Other Assets | 11.3 | 15.5 | 12.4 | |||||||||
Total Other Noncurrent Assets | 121.3 | 118.4 | 128.4 | |||||||||
TOTAL ASSETS | $ | 1,423.9 | $ | 1,309.7 | $ | 1,370.8 | ||||||
September 30, | December 31, | |||||||||||
2019 | 2018 | 2018 | ||||||||||
LIABILITIES AND CAPITALIZATION: | ||||||||||||
Current Liabilities: | ||||||||||||
Accounts Payable | $ | 22.9 | $ | 27.4 | $ | 42.6 | ||||||
Short-Term Debt | 49.2 | 69.1 | 82.8 | |||||||||
Long-Term Debt, Current Portion | 19.5 | 31.8 | 18.4 | |||||||||
Regulatory Liabilities | 14.4 | 12.2 | 11.5 | |||||||||
Energy Supply Obligations | 12.5 | 15.0 | 13.4 | |||||||||
Interest Payable | 7.1 | 7.0 | 4.3 | |||||||||
Other Current Liabilities | 18.8 | 18.0 | 19.5 | |||||||||
Total Current Liabilities | 144.4 | 180.5 | 192.5 | |||||||||
Noncurrent Liabilities: | ||||||||||||
Retirement Benefit Obligations | 120.8 | 142.4 | 121.5 | |||||||||
Deferred Income Taxes, net | 108.3 | 86.4 | 97.8 | |||||||||
Cost of Removal Obligations | 98.4 | 91.2 | 90.7 | |||||||||
Regulatory Liabilities | 46.7 | 47.9 | 47.0 | |||||||||
Other Noncurrent Liabilities | 10.2 | 10.0 | 10.1 | |||||||||
Total Noncurrent Liabilities | 384.4 | 377.9 | 367.1 | |||||||||
Capitalization: | ||||||||||||
Long-Term Debt, Less Current Portion | 410.9 | 361.1 | 387.4 | |||||||||
Stockholders’ Equity: | ||||||||||||
Common Equity (Authorized: 25,000,000 and Outstanding: 14,925,898, 14,872,011 and 14,876,955 Shares) | 281.7 | 278.3 | 279.1 | |||||||||
Retained Earnings | 88.1 | 66.5 | 72.0 | |||||||||
Total Common Stock Equity | 369.8 | 344.8 | 351.1 | |||||||||
Preferred Stock | 0.2 | 0.2 | 0.2 | |||||||||
Total Stockholders’ Equity | 370.0 | 345.0 | 351.3 | |||||||||
Total Capitalization | 780.9 | 706.1 | 738.7 | |||||||||
Commitments and Contingencies (Notes 6 & 7) | ||||||||||||
TOTAL LIABILITIES AND CAPITALIZATION | $ | 1,309.7 | $ | 1,264.5 | $ | 1,298.3 | ||||||
September 30, | December 31, | |||||||||||
2020 | 2019 | 2019 | ||||||||||
LIABILITIES AND CAPITALIZATION: | ||||||||||||
Current Liabilities: | ||||||||||||
Accounts Payable | $ | 25.1 | $ | 22.9 | $ | 37.6 | ||||||
Short-Term Debt | 17.3 | 49.2 | 58.6 | |||||||||
Long-Term Debt, Current Portion | 6.3 | 19.5 | 19.5 | |||||||||
Regulatory Liabilities | 10.6 | 14.4 | 7.4 | |||||||||
Energy Supply Obligations | 12.1 | 12.5 | 10.5 | |||||||||
Interest Payable | 7.2 | 7.1 | 4.5 | |||||||||
Environmental Obligations | 0.3 | 0.6 | 0.6 | |||||||||
Other Current Liabilities | 19.3 | 18.2 | 21.1 | |||||||||
Total Current Liabilities | 98.2 | 144.4 | 159.8 | |||||||||
Noncurrent Liabilities: | ||||||||||||
Retirement Benefit Obligations | 145.0 | 120.8 | 141.9 | |||||||||
Deferred Income Taxes, net | 109.4 | 108.3 | 103.6 | |||||||||
Cost of Removal Obligations | 107.1 | 98.4 | 96.0 | |||||||||
Regulatory Liabilities | 44.7 | 46.7 | 46.6 | |||||||||
Environmental Obligations | 1.9 | 2.2 | 2.1 | |||||||||
Other Noncurrent Liabilities | 7.8 | 8.0 | 6.5 | |||||||||
Total Noncurrent Liabilities | 415.9 | 384.4 | 396.7 | |||||||||
Capitalization: | ||||||||||||
Long-Term Debt, Less Current Portion | 529.0 | 410.9 | 437.5 | |||||||||
Stockholders’ Equity: | ||||||||||||
Common Equity (Authorized: 25,000,000 and Outstanding: 15,005,881, 14,925,898 and 14,930,170 Shares) | 284.8 | 281.7 | 282.5 | |||||||||
Retained Earnings | 95.8 | 88.1 | 94.1 | |||||||||
Total Common Stock Equity | 380.6 | 369.8 | 376.6 | |||||||||
Preferred Stock | 0.2 | 0.2 | 0.2 | |||||||||
Total Stockholders’ Equity | 380.8 | 370.0 | 376.8 | |||||||||
Total Capitalization | 909.8 | 780.9 | 814.3 | |||||||||
Commitments and Contingencies (Notes 6 & 7) | ||||||||||||
TOTAL LIABILITIES AND CAPITALIZATION | $ | 1,423.9 | $ | 1,309.7 | $ | 1,370.8 | ||||||
Nine Months Ended September 30, | ||||||||
2019 | 2018 | |||||||
Operating Activities: | ||||||||
Net Income | $ | 32.8 | $ | 22.0 | ||||
Adjustments to Reconcile Net Income to Cash | ||||||||
Provided by Operating Activities: | ||||||||
Depreciation and Amortization | 39.0 | 37.4 | ||||||
Deferred Tax Provision | 9.3 | 4.6 | ||||||
Gain on Divestiture, Net (See Note 1) | (13.4 | ) | — | |||||
Changes in Working Capital Items: | ||||||||
Accounts Receivable | 27.4 | 15.1 | ||||||
Accrued Revenue | 19.4 | 17.3 | ||||||
Exchange Gas Receivable | (0.5 | ) | (4.3 | ) | ||||
Regulatory Liabilities | 2.9 | 3.0 | ||||||
Accounts Payable | (19.7 | ) | (14.1 | ) | ||||
Other Changes in Working Capital Items | (2.4 | ) | 3.7 | |||||
Deferred Regulatory and Other Charges | (4.7 | ) | (5.7 | ) | ||||
Other, net | 2.1 | (9.0 | ) | |||||
Cash Provided by Operating Activities | 92.2 | 70.0 | ||||||
Investing Activities: | ||||||||
Property, Plant and Equipment Additions | (76.7 | ) | (76.3 | ) | ||||
Proceeds from Divestiture, Net (See Note 1) | 13.4 | — | ||||||
Cash (Used in) Investing Activities | (63.3 | ) | (76.3 | ) | ||||
Financing Activities: | ||||||||
(Repayment of) Proceeds from Short-Term Debt, net | (33.6 | ) | 30.8 | |||||
Repayment of Long-Term Debt | (15.2 | ) | (13.5 | ) | ||||
Issuance of Long-Term Debt | 39.8 | — | ||||||
Decrease in Capital Lease Obligations | (5.1 | ) | (2.3 | ) | ||||
Net Increase in Exchange Gas Financing | 0.5 | 4.1 | ||||||
Dividends Paid | (16.7 | ) | (16.3 | ) | ||||
Proceeds from Issuance of Common Stock, net | 0.9 | 0.9 | ||||||
Cash (Used in) Provided by Financing Activities | (29.4 | ) | 3.7 | |||||
Net Decrease in Cash and Cash Equivalents | (0.5 | ) | (2.6 | ) | ||||
Cash and Cash Equivalents at Beginning of Period | 7.8 | 8.9 | ||||||
Cash and Cash Equivalents at End of Period | $ | 7.3 | $ | 6.3 | ||||
Supplemental Cash Flow Information: | ||||||||
Interest Paid | $ | 15.6 | $ | 15.6 | ||||
Income Taxes Paid | $ | 0.9 | $ | 0.4 | ||||
Payments on Capital Leases | $ | 5.4 | $ | 2.3 | ||||
Non-cash Investing Activity: | ||||||||
Capital Expenditures Included in Accounts Payable | $ | 0.8 | $ | 1.2 | ||||
Right-of-Use Assets Obtained in Exchange for Lease Obligations | $ | 4.2 | $ | — |
Nine Months Ended September 30, | ||||||||
2020 | 2019 | |||||||
Operating Activities: | ||||||||
Net Income | $ | 18.6 | $ | 32.8 | ||||
Adjustments to Reconcile Net Income to Cash Provided by Operating Activities: | ||||||||
Depreciation and Amortization | 40.7 | 39.0 | ||||||
Deferred Tax Provision | 3.0 | 9.3 | ||||||
Gain on Divestiture, Net (See Note 1) | — | (13.4 | ) | |||||
Changes in Working Capital Items: | ||||||||
Accounts Receivable | 6.5 | 27.4 | ||||||
Accrued Revenue | 10.9 | 19.4 | ||||||
Exchange Gas Receivable | (0.4 | ) | (0.5 | ) | ||||
Regulatory Liabilities | 3.2 | 2.9 | ||||||
Accounts Payable | (12.5 | ) | (19.7 | ) | ||||
Other Changes in Working Capital Items | 0.9 | (2.4 | ) | |||||
Deferred Regulatory and Other Charges | 5.3 | (4.7 | ) | |||||
Other, net | (1.3 | ) | 2.1 | |||||
Cash Provided by Operating Activities | 74.9 | 92.2 | ||||||
Investing Activities: | ||||||||
Property, Plant and Equipment Additions | (93.6 | ) | (76.7 | ) | ||||
Proceeds from Divestiture, Net (See Note 1) | — | 13.4 | ||||||
Cash (Used in) Investing Activities | (93.6 | ) | (63.3 | ) | ||||
Financing Activities: | ||||||||
Repayment of Short-Term Debt, net | (41.3 | ) | (33.6 | ) | ||||
Repayment of Long-Term Debt | (15.9 | ) | (15.2 | ) | ||||
Issuance of Long-Term Debt | 95.0 | 40.0 | ||||||
Long-Term Debt Issuance Costs | (0.5 | ) | (0.2 | ) | ||||
Decrease in Capital Lease Obligations | — | (5.1 | ) | |||||
Net Increase in Exchange Gas Financing | 0.5 | 0.5 | ||||||
Dividends Paid | (16.9 | ) | (16.7 | ) | ||||
Proceeds from Issuance of Common Stock | 0.8 | 0.9 | ||||||
Cash Provided by (Used in) Financing Activities | 21.7 | (29.4 | ) | |||||
Net Increase (Decrease) in Cash and Cash Equivalents | 3.0 | (0.5 | ) | |||||
Cash and Cash Equivalents at Beginning of Period | 5.2 | 7.8 | ||||||
Cash and Cash Equivalents at End of Period | $ | 8.2 | $ | 7.3 | ||||
Supplemental Cash Flow Information: | ||||||||
Interest Paid | $ | 15.3 | $ | 15.6 | ||||
Income Taxes Paid | $ | 0.8 | $ | 0.9 | ||||
Payments on Capital Leases | $ | 0.2 | $ | 5.4 | ||||
Non-cash Investing Activity: | ||||||||
Capital Expenditures Included in Accounts Payable | $ | 0.6 | $ | 0.8 | ||||
Right-of-Use | $ | 1.6 | $ | 4.2 |
Common Equity | Retained Earnings | Total | ||||||||||
Three Months Ended September 30, 2019 | ||||||||||||
Balance at July 1, 2019 | $ | 281.3 | $ | 91.5 | $ | 372.8 | ||||||
Net Income | 2.3 | 2.3 | ||||||||||
Dividends on Common Shares ($0.370 per share) | (5.7 | ) | (5.7 | ) | ||||||||
Stock Compensation Plans | 0.1 | 0.1 | ||||||||||
Issuance of 4,727 Common Shares | 0.3 | 0.3 | ||||||||||
Balance at September 30, 2019 | $ | 281.7 | $ | 88.1 | $ | 369.8 | ||||||
Three Months Ended September 30, 2018 | ||||||||||||
Balance at July 1, 2018 | $ | 277.9 | $ | 69.1 | $ | 347.0 | ||||||
Net Income | 2.8 | 2.8 | ||||||||||
Dividends on Common Shares ($0.365 per share) | (5.4 | ) | (5.4 | ) | ||||||||
Stock Compensation Plans | 0.1 | 0.1 | ||||||||||
Issuance of 5,423 Common Shares | 0.3 | 0.3 | ||||||||||
Balance at September 30, 2018 | $ | 278.3 | $ | 66.5 | $ | 344.8 | ||||||
Common Equity | Retained Earnings | Total | ||||||||||
Three Months Ended September 30, 2020 | ||||||||||||
Balance at July 1, 2020 | $ | 284.4 | $ | 101.1 | $ | 385.5 | ||||||
Net Income | 0.3 | 0.3 | ||||||||||
Dividends on Common Shares ($0.375 per share) | (5.6 | ) | (5.6 | ) | ||||||||
Stock Compensation Plans | 0.1 | 0.1 | ||||||||||
Issuance of 6,650 Common Shares | 0.3 | 0.3 | ||||||||||
Balance at September 30, 2020 | $ | 284.8 | $ | 95.8 | $ | 380.6 | ||||||
Three Months Ended September 30, 2019 | ||||||||||||
Balance at July 1, 2019 | $ | 281.3 | $ | 91.5 | $ | 372.8 | ||||||
Net Income | 2.3 | 2.3 | ||||||||||
Dividends on Common Shares ($0.370 per share) | (5.7 | ) | (5.7 | ) | ||||||||
Stock Compensation Plans | 0.1 | 0.1 | ||||||||||
Issuance of 4,727 Common Shares | 0.3 | 0.3 | ||||||||||
Balance at September 30, 2019 | $ | 281.7 | $ | 88.1 | $ | 369.8 | ||||||
Common Equity | Retained Earnings | Total | ||||||||||
Nine Months Ended September 30, 2019 | ||||||||||||
Balance at January 1, 2019 | $ | 279.1 | $ | 72.0 | $ | 351.1 | ||||||
Net Income | 32.8 | 32.8 | ||||||||||
Dividends on Common Shares ($1.11 per share) | (16.7 | ) | (16.7 | ) | ||||||||
Stock Compensation Plans | 1.7 | 1.7 | ||||||||||
Issuance of 15,793 Common Shares | 0.9 | 0.9 | ||||||||||
Balance at September 30, 2019 | $ | 281.7 | $ | 88.1 | $ | 369.8 | ||||||
Nine Months Ended September 30, 2018 | ||||||||||||
Balance at January 1, 2018 | $ | 275.8 | $ | 60.8 | $ | 336.6 | ||||||
Net Income | 22.0 | 22.0 | ||||||||||
Dividends on Common Shares ($1.095 per share) | (16.3 | ) | (16.3 | ) | ||||||||
Stock Compensation Plans | 1.5 | 1.5 | ||||||||||
Issuance of 19,700 Common Shares | 1.0 | 1.0 | ||||||||||
Balance at September 30, 2018 | $ | 278.3 | $ | 66.5 | $ | 344.8 | ||||||
Common Equity | Retained Earnings | Total | ||||||||||
Nine Months Ended September 30, 2020 | ||||||||||||
Balance at January 1, 2020 | $ | 282.5 | $ | 94.1 | $ | 376.6 | ||||||
Net Income | 18.6 | 18.6 | ||||||||||
Dividends on Common Shares ($1.125 per share) | (16.9 | ) | (16.9 | ) | ||||||||
Stock Compensation Plans | 1.5 | 1.5 | ||||||||||
Issuance of 16,849 Common Shares | 0.8 | 0.8 | ||||||||||
Balance at September 30, 2020 | $ | 284.8 | $ | 95.8 | $ | 380.6 | ||||||
Nine Months Ended September 30, 2019 | ||||||||||||
Balance at January 1, 2019 | $ | 279.1 | $ | 72.0 | $ | 351.1 | ||||||
Net Income | 32.8 | 32.8 | ||||||||||
Dividends on Common Shares ($1.11 per share) | (16.7 | ) | (16.7 | ) | ||||||||
Stock Compensation Plans | 1.7 | 1.7 | ||||||||||
Issuance of 15,793 Common Shares | 0.9 | 0.9 | ||||||||||
Balance at September 30, 2019 | $ | 281.7 | $ | 88.1 | $ | 369.8 | ||||||
September 30, | December 31, | |||||||||||
2020 | 2019 | 2019 | ||||||||||
LIABILITIES AND CAPITALIZATION: | ||||||||||||
Current Liabilities: | ||||||||||||
Accounts Payable | $ | 25.1 | $ | 22.9 | $ | 37.6 | ||||||
Short-Term Debt | 17.3 | 49.2 | 58.6 | |||||||||
Long-Term Debt, Current Portion | 6.3 | 19.5 | 19.5 | |||||||||
Regulatory Liabilities | 10.6 | 14.4 | 7.4 | |||||||||
Energy Supply Obligations | 12.1 | 12.5 | 10.5 | |||||||||
Interest Payable | 7.2 | 7.1 | 4.5 | |||||||||
Environmental Obligations | 0.3 | 0.6 | 0.6 | |||||||||
Other Current Liabilities | 19.3 | 18.2 | 21.1 | |||||||||
Total Current Liabilities | 98.2 | 144.4 | 159.8 | |||||||||
Noncurrent Liabilities: | ||||||||||||
Retirement Benefit Obligations | 145.0 | 120.8 | 141.9 | |||||||||
Deferred Income Taxes, net | 109.4 | 108.3 | 103.6 | |||||||||
Cost of Removal Obligations | 107.1 | 98.4 | 96.0 | |||||||||
Regulatory Liabilities | 44.7 | 46.7 | 46.6 | |||||||||
Environmental Obligations | 1.9 | 2.2 | 2.1 | |||||||||
Other Noncurrent Liabilities | 7.8 | 8.0 | 6.5 | |||||||||
Total Noncurrent Liabilities | 415.9 | 384.4 | 396.7 | |||||||||
Capitalization: | ||||||||||||
Long-Term Debt, Less Current Portion | 529.0 | 410.9 | 437.5 | |||||||||
Stockholders’ Equity: | ||||||||||||
Common Equity (Authorized: 25,000,000 and Outstanding: 15,005,881, 14,925,898 and 14,930,170 Shares) | 284.8 | 281.7 | 282.5 | |||||||||
Retained Earnings | 95.8 | 88.1 | 94.1 | |||||||||
Total Common Stock Equity | 380.6 | 369.8 | 376.6 | |||||||||
Preferred Stock | 0.2 | 0.2 | 0.2 | |||||||||
Total Stockholders’ Equity | 380.8 | 370.0 | 376.8 | |||||||||
Total Capitalization | 909.8 | 780.9 | 814.3 | |||||||||
Commitments and Contingencies (Notes 6 & 7) | ||||||||||||
TOTAL LIABILITIES AND CAPITALIZATION | $ | 1,423.9 | $ | 1,309.7 | $ | 1,370.8 | ||||||
Nine Months Ended September 30, | ||||||||
2020 | 2019 | |||||||
Operating Activities: | ||||||||
Net Income | $ | 18.6 | $ | 32.8 | ||||
Adjustments to Reconcile Net Income to Cash Provided by Operating Activities: | ||||||||
Depreciation and Amortization | 40.7 | 39.0 | ||||||
Deferred Tax Provision | 3.0 | 9.3 | ||||||
Gain on Divestiture, Net (See Note 1) | — | (13.4 | ) | |||||
Changes in Working Capital Items: | ||||||||
Accounts Receivable | 6.5 | 27.4 | ||||||
Accrued Revenue | 10.9 | 19.4 | ||||||
Exchange Gas Receivable | (0.4 | ) | (0.5 | ) | ||||
Regulatory Liabilities | 3.2 | 2.9 | ||||||
Accounts Payable | (12.5 | ) | (19.7 | ) | ||||
Other Changes in Working Capital Items | 0.9 | (2.4 | ) | |||||
Deferred Regulatory and Other Charges | 5.3 | (4.7 | ) | |||||
Other, net | (1.3 | ) | 2.1 | |||||
Cash Provided by Operating Activities | 74.9 | 92.2 | ||||||
Investing Activities: | ||||||||
Property, Plant and Equipment Additions | (93.6 | ) | (76.7 | ) | ||||
Proceeds from Divestiture, Net (See Note 1) | — | 13.4 | ||||||
Cash (Used in) Investing Activities | (93.6 | ) | (63.3 | ) | ||||
Financing Activities: | ||||||||
Repayment of Short-Term Debt, net | (41.3 | ) | (33.6 | ) | ||||
Repayment of Long-Term Debt | (15.9 | ) | (15.2 | ) | ||||
Issuance of Long-Term Debt | 95.0 | 40.0 | ||||||
Long-Term Debt Issuance Costs | (0.5 | ) | (0.2 | ) | ||||
Decrease in Capital Lease Obligations | — | (5.1 | ) | |||||
Net Increase in Exchange Gas Financing | 0.5 | 0.5 | ||||||
Dividends Paid | (16.9 | ) | (16.7 | ) | ||||
Proceeds from Issuance of Common Stock | 0.8 | 0.9 | ||||||
Cash Provided by (Used in) Financing Activities | 21.7 | (29.4 | ) | |||||
Net Increase (Decrease) in Cash and Cash Equivalents | 3.0 | (0.5 | ) | |||||
Cash and Cash Equivalents at Beginning of Period | 5.2 | 7.8 | ||||||
Cash and Cash Equivalents at End of Period | $ | 8.2 | $ | 7.3 | ||||
Supplemental Cash Flow Information: | ||||||||
Interest Paid | $ | 15.3 | $ | 15.6 | ||||
Income Taxes Paid | $ | 0.8 | $ | 0.9 | ||||
Payments on Capital Leases | $ | 0.2 | $ | 5.4 | ||||
Non-cash Investing Activity: | ||||||||
Capital Expenditures Included in Accounts Payable | $ | 0.6 | $ | 0.8 | ||||
Right-of-Use | $ | 1.6 | $ | 4.2 |
Common Equity | Retained Earnings | Total | ||||||||||
Three Months Ended September 30, 2020 | ||||||||||||
Balance at July 1, 2020 | $ | 284.4 | $ | 101.1 | $ | 385.5 | ||||||
Net Income | 0.3 | 0.3 | ||||||||||
Dividends on Common Shares ($0.375 per share) | (5.6 | ) | (5.6 | ) | ||||||||
Stock Compensation Plans | 0.1 | 0.1 | ||||||||||
Issuance of 6,650 Common Shares | 0.3 | 0.3 | ||||||||||
Balance at September 30, 2020 | $ | 284.8 | $ | 95.8 | $ | 380.6 | ||||||
Three Months Ended September 30, 2019 | ||||||||||||
Balance at July 1, 2019 | $ | 281.3 | $ | 91.5 | $ | 372.8 | ||||||
Net Income | 2.3 | 2.3 | ||||||||||
Dividends on Common Shares ($0.370 per share) | (5.7 | ) | (5.7 | ) | ||||||||
Stock Compensation Plans | 0.1 | 0.1 | ||||||||||
Issuance of 4,727 Common Shares | 0.3 | 0.3 | ||||||||||
Balance at September 30, 2019 | $ | 281.7 | $ | 88.1 | $ | 369.8 | ||||||
Common Equity | Retained Earnings | Total | ||||||||||
Nine Months Ended September 30, 2020 | ||||||||||||
Balance at January 1, 2020 | $ | 282.5 | $ | 94.1 | $ | 376.6 | ||||||
Net Income | 18.6 | 18.6 | ||||||||||
Dividends on Common Shares ($1.125 per share) | (16.9 | ) | (16.9 | ) | ||||||||
Stock Compensation Plans | 1.5 | 1.5 | ||||||||||
Issuance of 16,849 Common Shares | 0.8 | 0.8 | ||||||||||
Balance at September 30, 2020 | $ | 284.8 | $ | 95.8 | $ | 380.6 | ||||||
Nine Months Ended September 30, 2019 | ||||||||||||
Balance at January 1, 2019 | $ | 279.1 | $ | 72.0 | $ | 351.1 | ||||||
Net Income | 32.8 | 32.8 | ||||||||||
Dividends on Common Shares ($1.11 per share) | (16.7 | ) | (16.7 | ) | ||||||||
Stock Compensation Plans | 1.7 | 1.7 | ||||||||||
Issuance of 15,793 Common Shares | 0.9 | 0.9 | ||||||||||
Balance at September 30, 2019 | $ | 281.7 | $ | 88.1 | $ | 369.8 | ||||||
Three Months Ended September 30, 2019 | ||||||||||||
Gas and Electric Operating Revenues ($ millions): | Gas | Electric | Total | |||||||||
Billed and Unbilled Revenue: | ||||||||||||
Residential | $ | 6.9 | $ | 31.3 | $ | 38.2 | ||||||
C&I | 12.5 | 24.5 | 37.0 | |||||||||
Other | 1.1 | 1.5 | 2.6 | |||||||||
Total Billed and Unbilled Revenue | 20.5 | 57.3 | 77.8 | |||||||||
Rate Adjustment Mechanism Revenue | 4.4 | 3.1 | 7.5 | |||||||||
Total Gas and Electric Operating Revenues | $ | 24.9 | $ | 60.4 | $ | 85.3 | ||||||
Three Months Ended September 30, 2018 | ||||||||||||
Gas and Electric Operating Revenues ($ millions): | Gas | Electric | Total | |||||||||
Billed and Unbilled Revenue: | ||||||||||||
Residential | $ | 6.6 | $ | 33.6 | $ | 40.2 | ||||||
C&I | 11.9 | 25.3 | 37.2 | |||||||||
Other | 1.1 | 2.0 | 3.1 | |||||||||
Total Billed and Unbilled Revenue | 19.6 | 60.9 | 80.5 | |||||||||
Rate Adjustment Mechanism Revenue | 6.1 | 0.5 | 6.6 | |||||||||
Total Gas and Electric Operating Revenues | $ | 25.7 | $ | 61.4 | $ | 87.1 | ||||||
Nine Months Ended September 30, 2019 | ||||||||||||
Gas and Electric Operating Revenues ($ millions): | Gas | Electric | Total | |||||||||
Billed and Unbilled Revenue: | ||||||||||||
Residential | $ | 61.4 | $ | 94.8 | $ | 156.2 | ||||||
C&I | 89.5 | 72.2 | 161.7 | |||||||||
Other | 9.1 | 5.8 | 14.9 | |||||||||
Total Billed and Unbilled Revenue | 160.0 | 172.8 | 332.8 | |||||||||
Rate Adjustment Mechanism Revenue | (16.1 | ) | 4.2 | (11.9 | ) | |||||||
Total Gas and Electric Operating Revenues | $ | 143.9 | $ | 177.0 | $ | 320.9 | ||||||
Nine Months Ended September 30, 2018 | ||||||||||||
Gas and Electric Operating Revenues ($ millions): | Gas | Electric | Total | |||||||||
Billed and Unbilled Revenue: | ||||||||||||
Residential | $ | 58.3 | $ | 95.6 | $ | 153.9 | ||||||
C&I | 84.7 | 74.1 | 158.8 | |||||||||
Other | 8.1 | 6.5 | 14.6 | |||||||||
Total Billed and Unbilled Revenue | 151.1 | 176.2 | 327.3 | |||||||||
Rate Adjustment Mechanism Revenue | (3.7 | ) | (8.6 | ) | (12.3 | ) | ||||||
Total Gas and Electric Operating Revenues | $ | 147.4 | $ | 167.6 | $ | 315.0 | ||||||
($ millions) | ||||||||||||
September 30, | December 31, | |||||||||||
2019 | 2018 | 2018 | ||||||||||
Allowance for Doubtful Accounts | $ | 1.0 | $ | 1.2 | $ | 1.3 | ||||||
September 30, | December 31, | |||||||||||
Accrued Revenue ($ millions) | 2019 | 2018 | 2018 | |||||||||
Regulatory Assets – Current | $ | 24.9 | $ | 26.4 | $ | 41.3 | ||||||
Unbilled Revenues | 10.4 | 9.6 | 13.4 | |||||||||
Total Accrued Revenue | $ | 35.3 | $ | 36.0 | $ | 54.7 |
September 30, | December 31, | |||||||||||
Exchange Gas Receivable ($ millions) | 2019 | 2018 | 2018 | |||||||||
Northern Utilities | $ | 8.0 | $ | 9.5 | $ | 7.5 | ||||||
Fitchburg | 0.6 | 0.6 | 0.6 | |||||||||
Total Exchange Gas Receivable | $ | 8.6 | $ | 10.1 | $ | 8.1 | ||||||
September 30, | December 31, | |||||||||||
Gas Inventory ($ millions) | 2019 | 2018 | 2018 | |||||||||
Natural Gas | $ | 0.4 | $ | 0.4 | $ | 0.3 | ||||||
Propane | 0.3 | 0.4 | 0.4 | |||||||||
Liquefied Natural Gas & Other | 0.1 | 0.1 | 0.1 | |||||||||
Total Gas Inventory | $ | 0.8 | $ | 0.9 | $ | 0.8 | ||||||
September 30, | December 31, | |||||||||||
2020 | 2019 | 2019 | ||||||||||
LIABILITIES AND CAPITALIZATION: | ||||||||||||
Current Liabilities: | ||||||||||||
Accounts Payable | $ | 25.1 | $ | 22.9 | $ | 37.6 | ||||||
Short-Term Debt | 17.3 | 49.2 | 58.6 | |||||||||
Long-Term Debt, Current Portion | 6.3 | 19.5 | 19.5 | |||||||||
Regulatory Liabilities | 10.6 | 14.4 | 7.4 | |||||||||
Energy Supply Obligations | 12.1 | 12.5 | 10.5 | |||||||||
Interest Payable | 7.2 | 7.1 | 4.5 | |||||||||
Environmental Obligations | 0.3 | 0.6 | 0.6 | |||||||||
Other Current Liabilities | 19.3 | 18.2 | 21.1 | |||||||||
Total Current Liabilities | 98.2 | 144.4 | 159.8 | |||||||||
Noncurrent Liabilities: | ||||||||||||
Retirement Benefit Obligations | 145.0 | 120.8 | 141.9 | |||||||||
Deferred Income Taxes, net | 109.4 | 108.3 | 103.6 | |||||||||
Cost of Removal Obligations | 107.1 | 98.4 | 96.0 | |||||||||
Regulatory Liabilities | 44.7 | 46.7 | 46.6 | |||||||||
Environmental Obligations | 1.9 | 2.2 | 2.1 | |||||||||
Other Noncurrent Liabilities | 7.8 | 8.0 | 6.5 | |||||||||
Total Noncurrent Liabilities | 415.9 | 384.4 | 396.7 | |||||||||
Capitalization: | ||||||||||||
Long-Term Debt, Less Current Portion | 529.0 | 410.9 | 437.5 | |||||||||
Stockholders’ Equity: | ||||||||||||
Common Equity (Authorized: 25,000,000 and Outstanding: 15,005,881, 14,925,898 and 14,930,170 Shares) | 284.8 | 281.7 | 282.5 | |||||||||
Retained Earnings | 95.8 | 88.1 | 94.1 | |||||||||
Total Common Stock Equity | 380.6 | 369.8 | 376.6 | |||||||||
Preferred Stock | 0.2 | 0.2 | 0.2 | |||||||||
Total Stockholders’ Equity | 380.8 | 370.0 | 376.8 | |||||||||
Total Capitalization | 909.8 | 780.9 | 814.3 | |||||||||
Commitments and Contingencies (Notes 6 & 7) | ||||||||||||
TOTAL LIABILITIES AND CAPITALIZATION | $ | 1,423.9 | $ | 1,309.7 | $ | 1,370.8 | ||||||
Nine Months Ended September 30, | ||||||||
2020 | 2019 | |||||||
Operating Activities: | ||||||||
Net Income | $ | 18.6 | $ | 32.8 | ||||
Adjustments to Reconcile Net Income to Cash Provided by Operating Activities: | ||||||||
Depreciation and Amortization | 40.7 | 39.0 | ||||||
Deferred Tax Provision | 3.0 | 9.3 | ||||||
Gain on Divestiture, Net (See Note 1) | — | (13.4 | ) | |||||
Changes in Working Capital Items: | ||||||||
Accounts Receivable | 6.5 | 27.4 | ||||||
Accrued Revenue | 10.9 | 19.4 | ||||||
Exchange Gas Receivable | (0.4 | ) | (0.5 | ) | ||||
Regulatory Liabilities | 3.2 | 2.9 | ||||||
Accounts Payable | (12.5 | ) | (19.7 | ) | ||||
Other Changes in Working Capital Items | 0.9 | (2.4 | ) | |||||
Deferred Regulatory and Other Charges | 5.3 | (4.7 | ) | |||||
Other, net | (1.3 | ) | 2.1 | |||||
Cash Provided by Operating Activities | 74.9 | 92.2 | ||||||
Investing Activities: | ||||||||
Property, Plant and Equipment Additions | (93.6 | ) | (76.7 | ) | ||||
Proceeds from Divestiture, Net (See Note 1) | — | 13.4 | ||||||
Cash (Used in) Investing Activities | (93.6 | ) | (63.3 | ) | ||||
Financing Activities: | ||||||||
Repayment of Short-Term Debt, net | (41.3 | ) | (33.6 | ) | ||||
Repayment of Long-Term Debt | (15.9 | ) | (15.2 | ) | ||||
Issuance of Long-Term Debt | 95.0 | 40.0 | ||||||
Long-Term Debt Issuance Costs | (0.5 | ) | (0.2 | ) | ||||
Decrease in Capital Lease Obligations | — | (5.1 | ) | |||||
Net Increase in Exchange Gas Financing | 0.5 | 0.5 | ||||||
Dividends Paid | (16.9 | ) | (16.7 | ) | ||||
Proceeds from Issuance of Common Stock | 0.8 | 0.9 | ||||||
Cash Provided by (Used in) Financing Activities | 21.7 | (29.4 | ) | |||||
Net Increase (Decrease) in Cash and Cash Equivalents | 3.0 | (0.5 | ) | |||||
Cash and Cash Equivalents at Beginning of Period | 5.2 | 7.8 | ||||||
Cash and Cash Equivalents at End of Period | $ | 8.2 | $ | 7.3 | ||||
Supplemental Cash Flow Information: | ||||||||
Interest Paid | $ | 15.3 | $ | 15.6 | ||||
Income Taxes Paid | $ | 0.8 | $ | 0.9 | ||||
Payments on Capital Leases | $ | 0.2 | $ | 5.4 | ||||
Non-cash Investing Activity: | ||||||||
Capital Expenditures Included in Accounts Payable | $ | 0.6 | $ | 0.8 | ||||
Right-of-Use | $ | 1.6 | $ | 4.2 |
Common Equity | Retained Earnings | Total | ||||||||||
Three Months Ended September 30, 2020 | ||||||||||||
Balance at July 1, 2020 | $ | 284.4 | $ | 101.1 | $ | 385.5 | ||||||
Net Income | 0.3 | 0.3 | ||||||||||
Dividends on Common Shares ($0.375 per share) | (5.6 | ) | (5.6 | ) | ||||||||
Stock Compensation Plans | 0.1 | 0.1 | ||||||||||
Issuance of 6,650 Common Shares | 0.3 | 0.3 | ||||||||||
Balance at September 30, 2020 | $ | 284.8 | $ | 95.8 | $ | 380.6 | ||||||
Three Months Ended September 30, 2019 | ||||||||||||
Balance at July 1, 2019 | $ | 281.3 | $ | 91.5 | $ | 372.8 | ||||||
Net Income | 2.3 | 2.3 | ||||||||||
Dividends on Common Shares ($0.370 per share) | (5.7 | ) | (5.7 | ) | ||||||||
Stock Compensation Plans | 0.1 | 0.1 | ||||||||||
Issuance of 4,727 Common Shares | 0.3 | 0.3 | ||||||||||
Balance at September 30, 2019 | $ | 281.7 | $ | 88.1 | $ | 369.8 | ||||||
Common Equity | Retained Earnings | Total | ||||||||||
Nine Months Ended September 30, 2020 | ||||||||||||
Balance at January 1, 2020 | $ | 282.5 | $ | 94.1 | $ | 376.6 | ||||||
Net Income | 18.6 | 18.6 | ||||||||||
Dividends on Common Shares ($1.125 per share) | (16.9 | ) | (16.9 | ) | ||||||||
Stock Compensation Plans | 1.5 | 1.5 | ||||||||||
Issuance of 16,849 Common Shares | 0.8 | 0.8 | ||||||||||
Balance at September 30, 2020 | $ | 284.8 | $ | 95.8 | $ | 380.6 | ||||||
Nine Months Ended September 30, 2019 | ||||||||||||
Balance at January 1, 2019 | $ | 279.1 | $ | 72.0 | $ | 351.1 | ||||||
Net Income | 32.8 | 32.8 | ||||||||||
Dividends on Common Shares ($1.11 per share) | (16.7 | ) | (16.7 | ) | ||||||||
Stock Compensation Plans | 1.7 | 1.7 | ||||||||||
Issuance of 15,793 Common Shares | 0.9 | 0.9 | ||||||||||
Balance at September 30, 2019 | $ | 281.7 | $ | 88.1 | $ | 369.8 | ||||||
Three Months Ended September 30, 2020 | ||||||||||||
Gas and Electric Operating Revenues ($ millions): | Gas | Electric | Total | |||||||||
Billed and Unbilled Revenue: | ||||||||||||
Residential | $ | 7.0 | $ | 35.3 | $ | 42.3 | ||||||
C&I | 11.6 | 24.1 | 35.7 | |||||||||
Other | 1.4 | 1.4 | 2.8 | |||||||||
Total Billed and Unbilled Revenue | 20.0 | 60.8 | 80.8 | |||||||||
Rate Adjustment Mechanism Revenue | 7.5 | (0.9 | ) | 6.6 | ||||||||
Total Gas and Electric Operating Revenues | $ | 27.5 | $ | 59.9 | $ | 87.4 | ||||||
Three Months Ended September 30, 2019 | ||||||||||||
Gas and Electric Operating Revenues ($ millions): | Gas | Electric | Total | |||||||||
Billed and Unbilled Revenue: | ||||||||||||
Residential | $ | 6.9 | $ | 31.3 | $ | 38.2 | ||||||
C&I | 12.5 | 24.5 | 37.0 | |||||||||
Other | 1.1 | 1.5 | 2.6 | |||||||||
Total Billed and Unbilled Revenue | 20.5 | 57.3 | 77.8 | |||||||||
Rate Adjustment Mechanism Revenue | 4.4 | 3.1 | 7.5 | |||||||||
Total Gas and Electric Operating Revenues | $ | 24.9 | $ | 60.4 | $ | 85.3 | ||||||
Nine Months Ended September 30, 2020 | ||||||||||||
Gas and Electric Operating Revenues ($ millions): | Gas | Electric | Total | |||||||||
Billed and Unbilled Revenue: | ||||||||||||
Residential | $ | 52.4 | $ | 99.9 | $ | 152.3 | ||||||
C&I | 72.9 | 68.7 | 141.6 | |||||||||
Other | 5.6 | 4.9 | 10.5 | |||||||||
Total Billed and Unbilled Revenue | 130.9 | 173.5 | 304.4 | |||||||||
Rate Adjustment Mechanism Revenue | 0.5 | (3.2 | ) | (2.7 | ) | |||||||
Total Gas and Electric Operating Revenues | $ | 131.4 | $ | 170.3 | $ | 301.7 | ||||||
Nine Months Ended September 30, 2019 | ||||||||||||
Gas and Electric Operating Revenues ($ millions): | Gas | Electric | Total | |||||||||
Billed and Unbilled Revenue: | ||||||||||||
Residential | $ | 61.4 | $ | 94.8 | $ | 156.2 | ||||||
C&I | 89.5 | 72.2 | 161.7 | |||||||||
Other | 9.1 | 5.8 | 14.9 | |||||||||
Total Billed and Unbilled Revenue | 160.0 | 172.8 | 332.8 | |||||||||
Rate Adjustment Mechanism Revenue | (16.1 | ) | 4.2 | (11.9 | ) | |||||||
Total Gas and Electric Operating Revenues | $ | 143.9 | $ | 177.0 | $ | 320.9 | ||||||
($ millions) | ||||||||||||
September 30, | December 31, | |||||||||||
2020 | 2019 | 2019 | ||||||||||
Allowance for Doubtful Accounts | $ | 1.6 | $ | 1.0 | $ | 1.0 | ||||||
September 30, | December 31, | |||||||||||
Accrued Revenue ($ millions) | 2020 | 2019 | 2019 | |||||||||
Regulatory Assets – Current | $ | 31.7 | $ | 24.9 | $ | 35.8 | ||||||
Unbilled Revenues | 7.4 | 10.4 | 14.2 | |||||||||
Total Accrued Revenue | $ | 39.1 | $ | 35.3 | $ | 50.0 | ||||||
September 30, | December 31, | |||||||||||
Exchange Gas Receivable ($ millions) | 2020 | 2019 | 2019 | |||||||||
Northern Utilities | $ | 6.0 | $ | 8.0 | $ | 5.5 | ||||||
Fitchburg | 0.5 | 0.6 | 0.6 | |||||||||
Total Exchange Gas Receivable | $ | 6.5 | $ | 8.6 | $ | 6.1 | ||||||
September 30, | December 31, | |||||||||||
Gas Inventory ($ millions) | 2020 | 2019 | 2019 | |||||||||
Natural Gas | $ | 0.2 | $ | 0.4 | $ | 0.4 | ||||||
Propane | 0.3 | 0.3 | 0.3 | |||||||||
Liquefied Natural Gas & Other | 0.1 | 0.1 | 0.1 | |||||||||
Total Gas Inventory | $ | 0.6 | $ | 0.8 | $ | 0.8 | ||||||
September 30, | December 31, | |||||||||||
Regulatory Assets consist of the following ($ millions) | 2020 | 2019 | 2019 | |||||||||
Retirement Benefits | $ | 81.0 | $ | 74.0 | $ | 88.9 | ||||||
Energy Supply & Other Rate Adjustment Mechanisms | 28.9 | 20.6 | 31.0 | |||||||||
Deferred Storm Charges | 4.4 | 5.0 | 5.6 | |||||||||
Environmental | 6.1 | 8.0 | 7.2 | |||||||||
Income Taxes | 3.6 | 4.3 | 4.2 | |||||||||
Other Deferred Charges | 12.1 | 11.7 | 10.9 | |||||||||
Total Regulatory Assets | $ | 136.1 | $ | 123.6 | $ | 147.8 | ||||||
Less: Current Portion of Regulatory Assets (1) | 31.7 | 24.9 | 35.8 | |||||||||
Regulatory Assets – noncurrent | $ | 104.4 | $ | 98.7 | $ | 112.0 | ||||||
(1) | Reflects amounts included in |
September 30, | December 31, | |||||||||||
Regulatory Liabilities consist of the following ($ millions) | 2020 | 2019 | 2019 | |||||||||
Income Taxes (Note 8) | $ | 45.8 | $ | 47.6 | $ | 47.6 | ||||||
Rate Adjustment Mechanisms | 9.2 | 13.0 | 6.0 | |||||||||
Other | 0.3 | 0.5 | 0.4 | |||||||||
Total Regulatory Liabilities | $ | 55.3 | $ | 61.1 | $ | 54.0 | ||||||
Less: Current Portion of Regulatory Liabilities | 10.6 | 14.4 | 7.4 | |||||||||
Regulatory Liabilities – noncurrent | $ | 44.7 | $ | 46.7 | $ | 46.6 | ||||||
September 30, | December 31, | |||||||||||
Regulatory Assets consist of the following ($ millions) | 2019 | 2018 | 2018 | |||||||||
Retirement Benefits | $ | 74.0 | $ | 88.0 | $ | 72.0 | ||||||
Energy Supply & Other Rate Adjustment Mechanisms | 20.6 | 24.8 | 38.4 | |||||||||
Deferred Storm Charges | 5.0 | 6.3 | 6.3 | |||||||||
Environmental | 8.0 | 8.9 | 7.9 | |||||||||
Income Taxes | 4.3 | 5.9 | 5.7 | |||||||||
Other | 11.7 | 4.1 | 10.0 | |||||||||
Total Regulatory Assets | 123.6 | 138.0 | 140.3 | |||||||||
Less: Current Portion of Regulatory Assets (1) | 24.9 | 26.4 | 41.3 | |||||||||
Regulatory Assets – noncurrent | $ | 98.7 | $ | 111.6 | $ | 99.0 | ||||||
September 30, | December 31, | |||||||||||
Regulatory Liabilities consist of the following ($ millions) | 2019 | 2018 | 2018 | |||||||||
Income Taxes (Note 8) | $ | 47.6 | $ | 47.9 | $ | 47.0 | ||||||
Energy Supply & Other Rate Adjustment Mechanisms | 13.5 | 12.2 | 11.5 | |||||||||
Total Regulatory Liabilities | 61.1 | 60.1 | 58.5 | |||||||||
Less: Current Portion of Regulatory Liabilities | 14.4 | 12.2 | 11.5 | |||||||||
Regulatory Liabilities—noncurrent | $ | 46.7 | $ | 47.9 | $ | 47.0 | ||||||
September 30, | December 31, | |||||||||||
Fair Value of Marketable Securities ($ millions) | 2019 | 2018 | 2018 | |||||||||
Equity Funds | $ | — | $ | 3.0 | $ | — | ||||||
Fixed Income Funds | — | 2.3 | — | |||||||||
Money Market Funds | 5.9 | — | 4.8 | |||||||||
Total Marketable Securities | $ | 5.9 | $ | 5.3 | $ | 4.8 | ||||||
September 30, | December 31, | |||||||||||
Fair Value of Marketable Securities ($ millions) | 2019 | 2018 | 2018 | |||||||||
Equity Funds | $ | — | $ | — | $ | — | ||||||
Money Market Funds | 0.1 | — | — | |||||||||
Total Marketable Securities | $ | 0.1 | $ | — | $ | — | ||||||
September 30, | December 31, | |||||||||||
Energy Supply Obligations ($ millions) | 2019 | 2018 | 2018 | |||||||||
Current: | ||||||||||||
Exchange Gas Obligation | $ | 8.0 | $ | 9.5 | $ | 7.5 | ||||||
Renewable Energy Portfolio Standards | 4.2 | 5.2 | 5.6 | |||||||||
Power Supply Contract Divestitures | 0.3 | 0.3 | 0.3 | |||||||||
Total Energy Supply Obligations – Current | 12.5 | 15.0 | 13.4 | |||||||||
Noncurrent: | ||||||||||||
Power Supply Contract Divestitures | 0.4 | 0.7 | 0.6 | |||||||||
Total Energy Supply Obligations | $ | 12.9 | $ | 15.7 | $ | 14.0 | ||||||
September 30, | December 31, | |||||||||||
Fair Value of Marketable Securities ($ millions) | 2020 | 2019 | 2019 | |||||||||
Money Market Funds | $ | 5.7 | $ | 5.9 | $ | 5.6 | ||||||
Total Marketable Securities | $ | 5.7 | $ | 5.9 | $ | 5.6 | ||||||
September 30, | December 31, | |||||||||||
Fair Value of Marketable Securities ($ millions) | 2020 | 2019 | 2019 | |||||||||
Equity Funds | $ | 0.2 | $ | — | $ | 0.1 | ||||||
Money Market Funds | 0.3 | 0.1 | 0.1 | |||||||||
Total Marketable Securities | $ | 0.5 | $ | 0.1 | $ | 0.2 | ||||||
September 30, | December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Energy Supply Obligations ($ millions) | 2020 | 2019 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exchange Gas Obligation | $ | 6.0 | $ | 8.0 | $ | 5.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Renewable Energy Portfolio Standards | 4.2 | 4.7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Power Supply Contract Divestitures | 0.3 | 0.3 | 0.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Energy Supply Obligations | 12.1 |
Exchange Gas Obligation - Renewable Energy Portfolio Standards Fitchburg has entered into long-term renewable contracts for the purchase of clean energy and/or RECs pursuant to Massachusetts legislation, specifically, An Act Relative to Green Communities (“Green Communities Act”, 2008), An Act Relative to Competitively Priced Electricity in the Commonwealth (“Acts of 2012”), and An Act to Promote Energy Diversity (“Energy Diversity Act”, 2016). For all the long-term contracts in place, six are currently operational and providing clean energy and RECs. These include one from the Green Communities Act 2008, and five from two separate procurements under the Acts of 2012. One additional contract from the Acts of 2012 is expected to become operational in the fourth quarter of 2020. Since 2017, the Company has participated in three major statewide procurements which resulted in contracts for imported hydroelectric power and associated transmission and two for offshore wind generation. The contract for imported hydroelectric power and one of the offshore wind contracts were approved by the MDPU in the second quarter of 2019 and the other offshore wind contract is pending approval by the MDPU. 35 Additional long-term clean energy contracts are expected in compliance with the Energy Diversity Act and An Act to Promote a Clean Energy Future (2018). Fitchburg recovers the costs associated with long-term renewable contracts on a fully reconciling basis through a MDPU-approved cost recovery mechanism. Power Supply Contract Divestitures - Subsequent Events – NOTE 2 – DIVIDENDS DECLARED PER SHARE
36 NOTE 3 – SEGMENT INFORMATION The following table provides significant segment financial data for the three and nine months ended September 30, 2020 and September 30, 2019:
37 NOTE 4 –DEBT AND FINANCING ARRANGEMENTS Details on long-term debt at September 30, 2020, September 30, 2019 and December 31, 2019 are shown below:
38
Fair Value of Long-Term Debt
On July 25, 2018, the Company entered into a Second Amended and Restated Credit Agreement and related documents (collectively, the “Credit Facility”) with a syndicate of lenders, which amended and restated in its entirety the Company’s prior credit facility. The Credit Facility extends to July 25, 2023, subject to two one-year extensions under certain circumstances, and has a borrowing limit of $120 million, which includes a $25 million sublimit for the issuance of standby letters of credit. The Credit Facility provides the Company with the ability to elect that borrowings under the Credit Facility bear interest under several options, including at a daily fluctuating rate of interest per annum equal toone-month London Interbank Offered Rate plus 1.125%. The Company may increase the borrowing limit under the Credit Facility by up to $50 million under certain circumstances.The Company utilizes the Credit Facility for cash management purposes related to its short-term operating activities. Total gross borrowings were The following table details the borrowing limits, amounts outstanding and amounts available under the Credit Facility as of September 30
The Credit Facility contains customary terms and conditions for credit facilities of this type, including affirmative and negative covenants. There are restrictions on, among other things, the Company’s and its subsidiaries’ ability to permit liens or incur indebtedness, and restrictions on the Company’s ability to merge or consolidate with another entity or change its line of business. The affirmative and negative covenants under the Credit Facility shall apply until the Credit Facility terminates and all amounts borrowed under the Credit Facility are paid in full (or with respect to letters of credit, they are cash collateralized). The only financial covenant in the Credit Facility provides that Funded Debt to Capitalization (as each term is defined in the Credit Facility) cannot exceed 65%, tested on a quarterly basis. At September 30, The average interest rates on all short-term borrowings and intercompany money pool transactions were 1.3% and 3.4% for the three months ended September 30, 1.8% and 3.6% for the nine months ended September 30, As discussed previously, the Company divested of its non-regulated subsidiary business, Usource, in the first quarter of 2019. The Company used the net proceeds of $9.8 million from this divestiture for general corporate purposes.On September 15, 2020, Northern Utilities issued $40 million of Notes due 2040 at 3.78%. Fitchburg issued $27.5 million of Notes due 2040 at 3.78%. Unitil Energy issued $27.5 million of Bonds due 2040 at 3.58%. Northern Utilities, Fitchburg and Unitil Energy used the net proceeds from these offerings to repay short-term debt and for general corporate purposes. Approximately $0.5 million of costs associated with these issuances have been netted against Long-Term Debt for presentation purposes on the Consolidated Balance Sheets. On December 18, 2019, Unitil Corporation issued $30 million of Notes due 2029 at 3.43%. Unitil Corporation used the net proceeds from this offering to repay short-term debt and for general corporate purposes. Approximately $0.2 million of costs associated with these issuances have been netted against Long-Term Debt for presentation purposes on the Consolidated Balance Sheets. On September 12, 2019, Northern Utilities issued $40 million of Notes due 2049 at 4.04%. Northern Utilities used the net proceeds from this offering to repay short-term debt and for general corporate purposes. Approximately $0.2 million of costs associated with these issuances have been netted against Long-Term Debt In April 2014, Unitil Service Corp. entered into a financing arrangement, structured as a capital lease obligation, for various information systems and technology equipment. Final funding under this capital lease occurred on October 30, 2015, resulting in total funding of $13.4 million. This capital lease was paid off in the second quarter of 2019. Unitil Corporation and its utility subsidiaries, Fitchburg, Unitil Energy, Northern Utilities, and Granite State are currently rated “BBB+” by Standard & Poor’s Ratings Services. Unitil Corporation and Granite State are currently rated “Baa2”, and Fitchburg, Unitil Energy and Northern Utilities are currently rated “Baa1” by Moody’s Investors Services. Northern Utilities enters into asset management agreements under which Northern Utilities releases certain October 2019 and Guarantees The Company provides limited guarantees on certain energy and Leases Unitil’s subsidiaries lease some of their vehicles, machinery and office equipment under both capital and operating lease arrangements. Total rental expense under operating leases charged to operations for the three months ended September 30, The balance sheet classification of the Company’s lease obligations was as follows:
Cash paid for amounts included in the measurement of operating lease obligations for the nine months ended September 30, Assets under capital leases amounted to approximately $1.1 million, $1.3 million The following table is a schedule of future operating lease payment obligations and future minimum lease payments under capital leases as of September 30, $0.3 million of noncurrent capital lease obligations, which are included in Other Noncurrent Liabilities, on the Company’s Consolidated Balance Sheets as of September 30, The payments for operating leases consist of
Operating lease obligations are based on the net present value of the remaining lease payments over the remaining lease term. In determining the present value of lease payments, the Company used the interest rate stated in each lease agreement. As of September 30,
Common Stock The Company’s common stock trades on the New York Stock Exchange under the symbol, “UTL.” The Company had Dividend Reinvestment and Stock Purchase Plan connection with its Dividend Reinvestment and Stock Purchase Plan (DRP) and its 401(k) plans resulting in net proceeds of approximately Stock Plan The maximum number of shares available for awards to participants under the Stock Plan is 677,500. The maximum number of shares that may be awarded in any one calendar year to any one participant is 42 20,000. In the event of any change in capitalization of the Company, the Compensation Committee is authorized to make an equitable adjustment to the number and kind of shares of common stock that may be delivered under the Stock Plan and, in addition, may authorize and make an equitable adjustment to the Stock Plan’s annual individual award limit. Restricted Shares Outstanding awards of Restricted Shares fully vest over a period of four years at a rate of 25% each year. During the vesting period, dividends on Restricted Shares underlying the award may be credited to a participant’s account. The Company may deduct or withhold, or require a participant to remit to the Company, an amount sufficient to satisfy any taxes required by federal, state, or local law or regulation to be withheld with respect to any taxable event arising in connection with an Award. For purposes of compensation expense, Restricted Shares vest immediately upon a participant becoming eligible for retirement, as defined in the Stock Plan. Prior to the end of the vesting period, the restricted shares are subject to forfeiture if the participant ceases to be employed by the Company other than due to the participant’s death.On January non-vested shares under the Stock Plan as of September 30, Restricted Stock Units Non-management members of the Company’s Board of Directors (Directors) may elect to receive the equity portion of their annual retainer in the form of Restricted Stock Stock Units will be paid such that the Director will receive (i) 70% of the shares of the Company’s common stock underlying the restricted stock units and (ii) cash in an amount equal to the fair market value of 30% of the shares of the Company’s common stock underlying the Restricted Stock Units. The equity portion of Restricted Stock Units activity during the nine months ended September 30,
There were 43 Preferred Stock There was $0.2 million, or 1,887 shares, of Unitil Energy’s 6.00% Series Preferred Stock outstanding as of September 30, 10-K FOR DECEMBER 31, Tax Cuts and Jobs Act of 2017 On December 22,(TCJA) was signed into law. Among other things, the TCJA substantially reduced the corporate income tax rate to 2018. Each state public utility commission, with jurisdiction over the areas that are served by Unitil’s electric and gas subsidiary companies, issued orders directing how the tax law changes were to be reflected in rates. Unitil has complied with these orders and has made the required changes to its rates as directed by the commissions. The FERC On November 21, 2019, the FERC issued Order No. 864, a Rate Case Activity Northern Utilities - Northern Utilities In its Final Order issued on February 28, 2018 for Northern Utilities’ 44 Northern Utilities Unitil Energy effective May 1, 2017, followed by two annual rate step adjustments to recover the revenue requirements associated with certain capital expenditures. On April 30, 2018, the NHPUC approved Unitil Energy’s first step increase, effective May 1, 2018. On April 22, 2019, the NHPUC approved Unitil Energy’s second and final step adjustment, providing for a revenue increase of approximately $340,000, effective May 1, 2019. Fitchburg - Fitchburg’s base rates are decoupled, and subject to an annual revenue decoupling adjustment mechanism, which includes a cap on the amount that rates may be increased in any year. In addition, Fitchburg has an annual capital cost recovery mechanism to recover the revenue requirement associated with certain capital additions. On November 1, 2018, On On April 17, 2020, the MDPU approved a Company may recover the costs of restoration for qualifying storm events. In addition, the agreement provides for the extension of the annual capital cost recovery mechanism, modified to allow the recovery of property tax on the cumulative net capital expenditures. Fitchburg they result in just and reasonable rates. On phased-in over two years: (1) an increase of $3.7 million, effective on March 1, 2020; and (2) an increase of $0.9 million, effective on March 1, 2021. Under the agreement, the Company will not increase or redesign base distribution rates to become effective prior to March 1, 2023, though the Company may seek cost recovery for certain exogenous events that meet a revenue impact threshold of $40,000. The agreement provides for a 45 Fitchburg In an Order issued on April 30, 2019, the MDPU approved Fitchburg’s 2018 GSEP Filing and increased the annual cap on recovery. Because the increase in the amount million, has been deferred to be recovered in a later proceeding. On May 1, 2019, the Company made its 2019 GREC Filing, seeking a waiver of the annual cap and a revenue increase of $1.0 million. The MDPU approved the Company’s request in its Order issued October 31, 2019. On October 31, 2019, the Company made its annual filing for an increase in revenues associated with 2020 GSEP investment for rates effective May 1, 2020. On March 12, 2020, the Company made a revised GSEP filing to incorporate the inclusion of the 2015 through 2018 GSEP investments in base rates effective March 1, 2020. On April 30, 2020, the MDPU approved the Company’s filing. On May 1, 2020, the Company made its 2020 GREC Filing. However, in accordance with the approved gas rate case settlement agreement, the Company decreased the Gas System Enhancement Reconciliation Adjustment Factors (GSERAF) and Gas System Enhancement Adjustment Factors to zero effective March 1, 2020 and will recover the February 29, 2020 GSEP deferral balance including interest over a 24 month period beginning March 1, 2021. This results in this year’s GSERAF changing on March 1, 2021 instead of November 1, 2020. The preliminary GSERAF recovery amount to be recovered over 24 months beginning March 1, 2021 is $2.1 million. This matter remains pending before the MDPU. Granite State On October 20, 2020, Granite State filed an uncontested rate settlement with the FERC which provides for an increase in annual revenues of approximately $ 1.3 million, effective November 1, 2020. The Settlement Agreement permits the filing of limited Section 4 rate adjustments for capital cost projects eligible for cost recovery in 2021, 2022, and 2023, and sets forth an overall cap of approximately $14.6 million on the capital cost recoverable under such filings during the term of the Settlement. Under the Settlement Agreement, Granite may not file a new general rate case earlier than April 30, 2024 with rates to be effective no earlier than November 1, 2024 based on a test year ending no earlier than December 31, 2023. The Settlement Agreement is pending approval by the FERC.Other Matters Fitchburg 46 Northern Utilities / Granite State – Firm Capacity Contract 12-month contract for firm pipeline capacity reservation, with an evergreen provision and three-month termination notification requirement. On Reconciliation Filings – Fitchburg megawatts (MW) of offshore wind energy generation by June 30, 2017, as part of a total of 1,600 MW of offshore wind the EDCs are directed to procure by June 30, 2027. Under Section 83D of the Act, the EDCs are required to jointly seek proposals for (MWh) by December 31, 2022. Unitil’s pro rata share of each of these contracts is approximatelyISO-NE wholesale market and to credit or charge the difference between the contract costs and theISO-NE market costs to customers. The MDPUalso determined that the EDCs’ request for remuneration equal to The EDCs issued the RFP pursuant to Section 83C for Long-Term Contracts for Offshore Wind Energy Generation in June 2017. Final selection of projects was made in May 2018, contracts were signed in July 2018 and on July 23, 2018, the EDCs, including Fitchburg, filed two long-term contracts, each for ISO-NE wholesale market and to credit or charge the difference between the contract costs and theISO-NE market costs to customers. The MDPU47 also determined that the EDCs’ request for remuneration equal to The EDCs issued an RFP pursuant to Section 83C for Long-Term Contracts for Offshore Wind Energy Generation on May 23, FERC Transmission Formula Rate Proceedings ISO-New England, Inc. Participating Transmission Owners’ Regional Network Service and Local Network Service formula rates. On April 14, 2017, the U.S. Court of Appeals for the D.C. Circuit issued an opinion vacating a decision of the FERC with respect to the ROE, and remanded it for further proceedings. The FERC had found that the Transmission Owners existing ROE was unlawful, and had set a new ROE. The Court found that the FERC had failed to articulate a satisfactory explanation for its orders. At this time, the ROE set in the vacated order will remain in place until further FERC action is taken. Separately, on March 15, 2018, the Transmission Owners filed a petition for review with the Court of certain orders of the FERC setting for hearing other complaints challenging the allowed return on equity component of the formula rates. On November 21, 2019 the FERC issued an order inEL14-12, Midcontinent Independent System Operator ROE, in which FERC outlined a new methodology for calculating the ROE. In response to the FERC order in EL14-12, the New England Transmission Owners (NETOs) filed a motion to reopen the record, which has been granted. This matter remains pending.Also pending at FERC is a Section 206 proceeding concerning the justness and reasonableness of ISO-New England, Inc. Participating Transmission Owners’ Regional Network Service and Local Network Service formula rates and to develop formula rate protocols for these rates. On August 17, 2018 a joint settlement agreement among a number of the parties was filed with the FERC. FERC rejected the settlement agreement on May 22, 2019 and remanded the proceedingto the Chief Administrative Law Judge to resume hearing procedures. On May 24,the judge appointed a Dispute Resolution Facilitator to aid parties in settlement negotiations. The procedural schedule was suspended September 24,in order to allow participants to focus on settlement negotiations. Legal Proceedings The Company is involved in legal and administrative proceedings and claims of various types, including those which arise in the ordinary course of business. The Company believes, based upon information furnished by counsel and others, that the ultimate resolution of these claims will not have a material impact on its financial position, operating results or cash flows. 48 NOTE 7 – ENVIRONMENTAL MATTERS UNITIL’S ENVIRONMENTAL MATTERS ARE DESCRIBED IN NOTE 8 TO THE FINANCIAL STATEMENTS IN ITEM 8 OF PART II OF UNITIL CORPORATION’S ANNUAL REPORT ON FORM 30, 2020.10-K FOR DECEMBER 31, The Company’s past and present operations include activities that are generally subject to extensive and complex federal and state environmental laws and regulations. The Company is in material compliance with applicable environmental and safety laws and regulations and, as of September 30, Northern Utilities Manufactured Gas Plant Sites mid-1800s through themid-1900s. In New Hampshire, MGP sites were identified in Dover, Exeter, Portsmouth, Rochester and Somersworth. In Maine, Northern Utilities has documented the presence of MGP sites in Lewiston and Portland, and a former MGP disposal site in Scarborough.Northern Utilities has worked with the Maine Department of Environmental Protection and New Hampshire Department of Environmental Services (NH DES) to address environmental concerns with these sites. Northern Utilities or others have completed remediation activities at all sites; however, on site monitoring continues at several sites which may result in future remedial actions as directed by the applicable regulatory agency. In July 2019, the NH DES requested that Northern Utilities review modeled expectations for groundwater contaminants against observed data at The NHPUC and MPUC have approved regulatory mechanisms for the recovery of MGP environmental costs. For Northern Utilities’ New Hampshire division, the NHPUC has approved the recovery of MGP environmental costs over succeeding The Environmental Obligations table below shows the amounts accrued for Northern Utilities related to estimated future cleanup costs associated with Northern Utilities’ environmental remediation obligations for former MGP sites. Corresponding Regulatory Assets were recorded to reflect that the future recovery of these environmental remediation costs is expected based on regulatory precedent and established practices. Fitchburg’s Manufactured Gas Plant Site 49 Fitchburg recovers the environmental response costs incurred at this former MGP site in gas rates pursuant to the terms of a cost recovery agreement approved by the MDPU. Pursuant to this agreement, Fitchburg is authorized to amortize and recover environmental response costs from gas customers over succeeding seven-year periods. The following table sets forth a summary of changes in the Company’s liability for Environmental Obligations for the Environmental Obligations
NOTE 8: INCOME TAXES In March 2020 the Coronavirus Aid, Relief and Economic Security (CARES) Act was signed into law. The CARES Act included several tax changes as part of
cannot perform their job duties at 100% capacity as a result of coronavirus pandemic restrictions. The ERC is taken as a credit on employment tax form 941. In i on as a reduction to employment tax Income tax filings for the year ended December 31, de-recognition, settlement and foreseeable future events to any tax liabilities or assets as defined by the FASB Codification is required. The Company remains subject to examination by Maine, Massachusetts, and New Hampshire tax authorities for the tax periods ended December 31, 2019. In December 2017, the Tax Cuts and Jobs Act (TCJA), which included a reduction to the corporate federal income tax rate to 21% effective January 1, 2018, was signed into law. In accordance with GAAP Accounting Standard 740, the Company revalued its Accumulated Deferred Income Taxes (ADIT) at the new 21% tax rate at which the ADIT will be reversed in future periods. The Company recorded a net Regulatory Liability in the amount of $48.9 million at December 31, 2017 as a result of the ADIT revaluation. In March 2020, the MPUC approved Northern Utilities’ base rate increase effective April 1, 2020. Part of the base rate increase is the flow back of excess ADIT through base rates. Northern Utilities was ordered to begin flowing back to customer excess ADIT of $12.3 million to gas ratepayers over approximately 20 years. 50 The MDPU issued a multi-utility Order D.P.U. 18-15-E non-plant excess ADIT amounts (unprotected), and 3) excess ADIT created through reconciling mechanisms. In the Order, all Massachusetts utilities were ordered to begin flow back of protected and unprotected excess ADIT on February 1, 2019 and to reconcile excess ADIT amounts previously collected from ratepayers through reconciliation mechanisms in the next filing of each of those individual reconciling mechanisms. Fitchburg was ordered to begin flowing back to customers excess ADIT of $10.1 million and $10.4 million to electric and gas ratepayers, respectively, over approximately fifteen years. Fitchburg filed its compliance filing underD.P.U.18-15-E On November 15, 2018 the FERC issued two pronouncements regarding the accounting for income taxes due to the TCJA; 1) Notice of Proposed Rulemaking Docket No. RM 19-5-000 and 2) Policy Statement PL 19-2-000 providing specific guidance on the flow back of excess ADIT created by the implementation of the TCJA. RM19-5-000 Based on communications received by the Company from its state regulators in rate cases and other regulatory proceedings in the first quarter of 2018 and as prescribed in the TCJA, the recent FERC guidance noted above and IRS normalization rules; the benefit of these protected excess ADIT amounts will be subject to flow back to customers in future utility rates according to the Average Rate Assumption Method (ARAM). ARAM reconciles excess ADIT at the reversal rate of the underlying book/tax temporary timing differences. The Company estimates the ARAM flow back period for protected and unprotected excess ADIT to be between fifteen and twenty years, over the remaining life of the related utility plant. Subject to regulatory approval, the Company expects to flow back to customers a net $47.1 million of protected excess ADIT created as a result of the lowering of the statutory tax rate by the TCJA over periods estimated to be fifteen to twenty years. As of September 30, 2020, the Company flowed back $1.6M to customers in Massachusetts and Maine. In addition to the protected excess $47.1 million ADIT amounts the Company expects to flow through to customers in utility rates, as noted above, there is approximately $1.8 million of excess ADIT created through reconciling mechanisms at December 31, 2017, related to the implementation of the new federal tax rate of the TCJA, which had not been previously collected from customers through utility rates. The Company will reconcile these excess ADIT amounts through the specific reconciliation mechanisms in the next filing of each of those individual reconciling mechanisms which will be subject to the review of state regulators. In addition to the $48.9 million of net excess ADIT noted re-measurement of regulatory deferred income tax balances. At this time, the Company has applied a reasonable interpretation of the TCJA and a reasonable estimate of the regulatory resolution. Future clarification of TCJA matters with the Company’s regulators may change the amounts estimated.51 Under the Company’s Tax Sharing Agreement (the “Agreement”) which was approved upon the formation of Unitil as a utilized federal NOLC assets of $8.2 million. As of September 30, had recorded cumulative federal In assessing the near-term use of NOLCs and tax credits, the Company evaluates the expected level of future taxable income, available tax planning strategies, reversals of existing taxable temporary differences and taxable income available in carryback years. Based on all available evidence, both positive and negative, and the weight of that evidence to the extent such evidence can be objectively verified, the Company expects to utilize all of its NOLCs by December 31, 2020 prior to their expiration in 2029. The Company bills its customers for sales tax in Massachusetts and Maine. These taxes are remitted to the appropriate departments of revenue in each state and are excluded from revenues on the Company’s unaudited Consolidated Statements of Earnings. The Company co-sponsors the Unitil Corporation Retirement Plan (Pension Plan), the Unitil Retiree Health and Welfare Benefits Plan (PBOP Plan), and the Unitil Corporation Supplemental Executive Retirement Plan (SERP Plan) to provide certain pension and postretirement benefits for its retirees and current employees. Please see Note 10 to the Consolidated 10-K for the year ended December 31, The following table includes the key weighted average assumptions used in determining the Company’s benefit plan costs and obligations:
52 The following tables provide the components of the Company’s Retirement plan costs ($000’s):
Employer Contributions As of September 30, As of September 30, Item 3. Quantitative and Qualitative Disclosures About Market Risk Reference is made to the “Interest Rate Risk” and “Market Risk” sections of Part I, Item 2. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” (above). Item 4. Controls and Procedures Management of the Company, under the supervision and with the participation of the Company’s Chief Executive Officer, Chief Financial Officer and Chief Accounting Officer, carried out an evaluation of the effectiveness of the design and operation of the Company’s disclosure controls and procedures as of September 30, 13a-15(e) and15(d)-15(e)) are effective.53 There have been no changes in the Company’s internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and15(d)-15(f)) during the fiscal quarter covered by thisForm 10-Q that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.PART II. OTHER INFORMATION Item 1. Legal Proceedings The Company is involved in legal and administrative proceedings and claims of various types, which arise in the ordinary course of business. Certain specific matters are discussed in Notes 6 and 7 to the Consolidated Financial Statements. In the opinion of Management, based upon information furnished by counsel and others, the ultimate resolution of these claims will not have a material impact on the Company’s financial position. Item 1A. Risk Factors There have been no material changes to the risk factors disclosed in the Company’s Annual Report on Form 10-K for the year-ended December 31, Form 8-K, filed with the SEC on March 26, 2020, the Company’s Quarterly Report onForm 10-Q for the fiscal quarter ended March 31, Form 10-Q for the fiscal quarter ended June 30, 2020, filed with the SEC on July 30, 2020.The novel coronavirus outbreak could adversely impact Unitil’s business, financial conditions, results of operations and cash flows. In December 2019, a novel strain of coronavirus (COVID-19) emerged in Wuhan, Hubei Province, China. While initially the outbreak was largely concentrated in China and caused significant disruptions to its economy, it has now spread to several other countries and infections have been reported globally. The extent to which the coronavirus impacts Unitil’s financial condition, results of operations, and cash flows will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the duration of the outbreak, new information which may emerge concerning the severity of the coronavirus, and the actions to contain the coronavirus or treat its impact, among others. In particular, the continued spread of the coronavirus could adversely impact Unitil’s business, including (i) by disrupting Unitil’s employees and contractors ability to provide ongoing services to Unitil, (ii) by reducing customer demand for electricity or gas, or (iii) by reducing the supply of electricity or gas, each of which could have an adverse impact on Unitil’s financial condition, results of operations, and cash flows.Item 2. Unregistered Sales of Equity Securities and Use of Proceeds Recent Sales of Unregistered Securities There were no sales of unregistered equity securities by the Company during the fiscal quarter ended September 30, Issuer Purchases of Equity Securities Pursuant to the Company’s written trading plan under Rule 10b5-1 under the 54 The Company may suspend or terminate this trading plan at any time, so long as the suspension or termination is made in good faith and not as part of a plan or scheme to evade the prohibitions of Rule 10b-5 under the Exchange Act, or other applicable securities laws.The following table shows information regarding repurchases by the Company of shares of its common stock pursuant to the trading plan for each month in the quarter ended September 30,
Item 5. Other Information On October Form 10-Q as Exhibit 99.1.Item 6. Exhibits (a) Exhibits
55 56
S-K, the
57 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
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