Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Oct. 31, 2018 | Mar. 31, 2018 | |
Document Information [Line Items] | |||
Entity Registrant Name | Washington Gas Light Company | ||
Entity Central Index Key | 104,819 | ||
Document Type | 10-K | ||
Document Period End Date | Sep. 30, 2018 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Public Float | $ 0 | ||
Entity Common Stock, Shares Outstanding | 46,479,536 | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 | |
Property, Plant and Equipment | |||
At original cost | $ 6,485,738 | $ 6,143,841 | |
Accumulated depreciation and amortization | (1,600,309) | (1,513,790) | |
Net property, plant and equipment | 4,885,429 | 4,630,051 | |
Current Assets | |||
Cash and cash equivalents | 57,969 | 8,524 | |
Receivables | |||
Accounts receivable | 402,590 | 398,149 | |
Gas costs and other regulatory assets | 5,054 | 21,705 | |
Unbilled revenues | 159,703 | 165,483 | |
Allowance for doubtful accounts | (40,086) | (32,025) | |
Net receivables | 527,261 | 553,312 | |
Materials and supplies—principally at average cost | 20,696 | 20,172 | |
Storage gas | 188,270 | 243,984 | |
Prepaid taxes | 32,746 | 31,549 | |
Other prepayments | 80,112 | 86,465 | |
Derivatives | 36,391 | 15,327 | |
Other | 38,363 | 26,556 | |
Total current assets | 981,808 | 985,889 | |
Deferred Charges and Other Assets | |||
Gas costs | 83,222 | 90,136 | |
Pension and other post-retirement benefits | 57,269 | 139,499 | |
Other | 104,578 | 104,596 | |
Prepaid post-retirement benefits | 286,010 | 231,577 | |
Derivatives | 20,572 | 38,389 | |
Investments in unconsolidated affiliates | 769,998 | 394,201 | |
Other | 59,201 | 11,671 | |
Total deferred charges and other assets | 1,380,850 | 1,010,069 | |
Total Assets | 7,248,087 | 6,626,009 | |
Capitalization | |||
WGL Holdings common shareholders’ equity | 1,796,478 | 1,502,690 | |
Non-controlling Interest | 7,732 | 6,851 | |
Washington Gas Light Company preferred stock | 28,173 | 28,173 | |
Total Equity | 1,832,383 | 1,537,714 | |
Long-term debt | 1,879,875 | 1,430,861 | |
Total capitalization | 3,712,258 | 2,968,575 | |
Current Liabilities | |||
Current maturities of long-term debt | 100,000 | 250,000 | |
Notes payable and project financing | 669,697 | 559,844 | |
Accounts Payable and Accrued Liabilities, Current | 518,825 | 423,824 | |
Wages payable | 11,379 | 18,096 | |
Accrued interest | 8,914 | 7,806 | |
Dividends declared | 28,939 | 26,452 | |
Customer deposits and advance payments | 84,105 | 65,841 | |
Gas costs and other regulatory liabilities | 34,157 | 22,814 | |
Accrued taxes | 31,151 | 17,657 | |
Derivatives | 22,710 | 43,990 | |
Other (a) | 48,307 | [1] | 52,664 |
Total current liabilities | 1,558,184 | 1,488,988 | |
Deferred Credits | |||
Unamortized investment tax credits | 159,461 | 155,007 | |
Deferred income taxes | 336,378 | 868,067 | |
Accrued pensions and benefits | 119,597 | 181,552 | |
Asset retirement obligations | 304,410 | 296,810 | |
Regulatory liabilities | |||
Accrued asset removal costs | 270,397 | 292,173 | |
Other post-retirement benefits | 160,286 | 135,035 | |
Excess deferred taxes and other | 445,203 | 9,403 | |
Derivatives | 120,513 | 122,607 | |
Other | 61,400 | 107,792 | |
Total deferred credits | 1,977,645 | 2,168,446 | |
Commitments and Contingencies (Note 12) | |||
Total Capitalization and Liabilities | 7,248,087 | 6,626,009 | |
Footnote | |||
Account payable to associated companies | 5,112 | ||
Washington Gas Light Company | |||
Property, Plant and Equipment | |||
At original cost | 5,613,137 | 5,310,337 | |
Accumulated depreciation and amortization | (1,495,683) | (1,422,622) | |
Net property, plant and equipment | 4,117,454 | 3,887,715 | |
Current Assets | |||
Cash and cash equivalents | 1 | 1 | |
Receivables | |||
Accounts receivable | 165,257 | 190,740 | |
Gas costs and other regulatory assets | 5,054 | 21,705 | |
Unbilled revenues | 101,114 | 107,967 | |
Allowance for doubtful accounts | (29,622) | (23,741) | |
Net receivables | 241,803 | 296,671 | |
Materials and supplies—principally at average cost | 20,650 | 20,126 | |
Storage gas | 101,379 | 92,753 | |
Prepaid taxes | 17,732 | 23,350 | |
Other prepayments | 24,449 | 13,238 | |
Receivables from associated companies | 2,227 | 32,362 | |
Derivatives | 17,441 | 5,061 | |
Other | 20,347 | 102 | |
Total current assets | 446,029 | 483,664 | |
Deferred Charges and Other Assets | |||
Gas costs | 83,222 | 90,136 | |
Pension and other post-retirement benefits | 56,983 | 138,573 | |
Other | 104,050 | 104,538 | |
Prepaid post-retirement benefits | 284,277 | 230,283 | |
Derivatives | 8,736 | 16,244 | |
Other | 49,331 | 3,561 | |
Total deferred charges and other assets | 586,599 | 583,335 | |
Total Assets | 5,150,082 | 4,954,714 | |
Capitalization | |||
WGL Holdings common shareholders’ equity | 1,442,764 | 1,164,749 | |
Washington Gas Light Company preferred stock | 28,173 | 28,173 | |
Long-term debt | 1,084,933 | 1,134,461 | |
Total capitalization | 2,555,870 | 2,327,383 | |
Current Liabilities | |||
Current maturities of long-term debt | 50,000 | ||
Notes payable and project financing | 163,478 | 166,772 | |
Accounts Payable and Accrued Liabilities, Current | 271,276 | 219,827 | |
Wages payable | 10,089 | 16,508 | |
Accrued interest | 4,000 | 3,967 | |
Dividends declared | 24,078 | 22,098 | |
Customer deposits and advance payments | 83,658 | 64,194 | |
Gas costs and other regulatory liabilities | 34,157 | 22,814 | |
Accrued taxes | 27,427 | 12,808 | |
Payables to associated companies | 21,548 | 94,844 | |
Derivatives | 14,838 | 30,263 | |
Other (a) | 7,627 | 7,473 | |
Total current liabilities | 712,176 | 661,568 | |
Deferred Credits | |||
Unamortized investment tax credits | 3,398 | 4,100 | |
Deferred income taxes | 409,807 | 888,385 | |
Accrued pensions and benefits | 118,204 | 179,814 | |
Asset retirement obligations | 298,202 | 291,871 | |
Regulatory liabilities | |||
Accrued asset removal costs | 270,397 | 292,173 | |
Other post-retirement benefits | 159,152 | 134,181 | |
Excess deferred taxes and other | 443,665 | 9,403 | |
Derivatives | 104,165 | 112,299 | |
Other | 75,046 | 53,537 | |
Total deferred credits | 1,882,036 | 1,965,763 | |
Commitments and Contingencies (Note 12) | |||
Total Capitalization and Liabilities | $ 5,150,082 | $ 4,954,714 | |
[1] | Includes $5.1 million account payable to associated companies as of September 30, 2018. Refer to Note 17-Related Party Transactions for more information. |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | ||
OPERATING REVENUES | ||||
Utility | $ 1,229,521 | $ 1,143,337 | $ 1,044,117 | |
Non-utility | 1,112,244 | 1,211,387 | 1,305,442 | |
Total Operating Revenues | [1] | 2,341,765 | 2,354,724 | 2,349,559 |
OPERATING EXPENSES | ||||
Utility cost of gas | 388,541 | 274,247 | 245,189 | |
Non-utility cost of energy-related sales | 907,512 | 1,002,908 | 1,123,077 | |
Operation and maintenance | 665,115 | 429,890 | 401,776 | |
Depreciation and amortization | 162,576 | 154,138 | 132,566 | |
General taxes and other assessments | 167,360 | 152,528 | 146,655 | |
Total Operating Expenses | 2,291,104 | 2,013,711 | 2,049,263 | |
OPERATING INCOME | 50,661 | 341,013 | 300,296 | |
Equity in earnings of unconsolidated affiliates | (5,791) | 20,216 | 13,806 | |
Other income (expense) —net | (15,043) | 1,819 | 4,646 | |
Interest expense | 62,133 | 74,026 | 52,310 | |
INCOME (LOSS) BEFORE INCOME TAXES | (32,306) | 289,022 | 266,438 | |
INCOME TAX EXPENSE (BENEFIT) | (53,452) | 111,159 | 98,074 | |
NET INCOME | 21,146 | 177,863 | 168,364 | |
Non-controlling interest | (29,517) | (16,077) | (550) | |
Dividends on Washington Gas Light Company preferred stock | 1,320 | 1,320 | 1,320 | |
NET INCOME APPLICABLE TO COMMON STOCK | 49,343 | 192,620 | 167,594 | |
Washington Gas Light Company | ||||
OPERATING REVENUES | ||||
Total Operating Revenues | 1,248,063 | 1,166,968 | 1,070,904 | |
OPERATING EXPENSES | ||||
Utility cost of gas | 407,043 | 297,856 | 271,975 | |
Operation and maintenance | 532,896 | 336,676 | 325,726 | |
Depreciation and amortization | 135,071 | 129,428 | 114,605 | |
General taxes and other assessments | 148,178 | 134,696 | 130,231 | |
Total Operating Expenses | 1,223,188 | 898,656 | 842,537 | |
OPERATING INCOME | 24,875 | 268,312 | 228,367 | |
Other income (expense) —net | (18,876) | (4,473) | (2,143) | |
Interest expense | 58,504 | 52,207 | 41,444 | |
INCOME (LOSS) BEFORE INCOME TAXES | (52,505) | 211,632 | 184,780 | |
INCOME TAX EXPENSE (BENEFIT) | (25,863) | 79,840 | 71,666 | |
NET INCOME | (26,642) | 131,792 | 113,114 | |
Dividends on Washington Gas Light Company preferred stock | 1,320 | 1,320 | 1,320 | |
NET INCOME APPLICABLE TO COMMON STOCK | $ (27,962) | $ 130,472 | $ 111,794 | |
[1] | Operating revenue amounts in the “Eliminations” row represent total intersegment revenues associated with sales from the regulated utility segment to the retail energy-marketing segment. Midstream Energy Services’ cost of energy related sales is netted with its gross revenues. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |||
NET INCOME (LOSS) | $ 21,146 | $ 177,863 | $ 168,364 | ||
OTHER COMPREHENSIVE INCOME (LOSS), BEFORE INCOME TAXES: | |||||
Qualified cash flow hedging instruments | (6,341) | [1] | 49,610 | [1] | (39,289) |
Pension and other post-retirement benefit plans | |||||
Change in prior service (cost) credit | (675) | [2] | (767) | [2] | (891) |
Change in actuarial net gain (loss) | 6,324 | [2] | 6,232 | [2] | (936) |
INCOME TAX EXPENSE (BENEFIT) RELATED TO OTHER COMPREHENSIVE INCOME (LOSS) | 1,523 | 22,533 | (16,813) | ||
OTHER COMPREHENSIVE INCOME (LOSS) | (2,215) | 32,542 | (24,303) | ||
Comprehensive Income | 18,931 | 210,405 | 144,061 | ||
Comprehensive Income (Loss) Attributable to Noncontrolling Interests | (29,517) | (16,077) | (550) | ||
TOTAL OTHER COMPREHENSIVE INCOME (LOSS) BEFORE TAXES | (692) | 55,075 | (41,116) | ||
Dividends on Washington Gas Light Company preferred stock | 1,320 | 1,320 | 1,320 | ||
Comprehensive Income (Loss) Attributable to WGL Holdings, Inc. | 47,128 | 225,162 | 143,291 | ||
Washington Gas Light Company | |||||
NET INCOME (LOSS) | (26,642) | 131,792 | 113,114 | ||
Pension and other post-retirement benefit plans | |||||
Change in prior service (cost) credit | (675) | [3] | (767) | [3] | (891) |
Change in actuarial net gain (loss) | 6,324 | [3] | 6,232 | [3] | (936) |
Total pension and other post-retirement benefit plans | 5,649 | 5,465 | (1,827) | ||
INCOME TAX EXPENSE (BENEFIT) RELATED TO OTHER COMPREHENSIVE INCOME (LOSS) | 2,957 | 2,157 | (709) | ||
OTHER COMPREHENSIVE INCOME (LOSS) | 2,692 | 3,308 | (1,118) | ||
Comprehensive Income | (23,950) | 135,100 | 111,996 | ||
TOTAL OTHER COMPREHENSIVE INCOME (LOSS) BEFORE TAXES | 5,649 | 5,465 | |||
Dividends on Washington Gas Light Company preferred stock | $ 1,320 | $ 1,320 | $ 1,320 | ||
[1] | Cash flow hedging instruments represent interest rate swap agreements related to debt issuances. Refer to Note 13—Derivative and Weather-related Instruments for further discussion of the interest rate swap agreements. | ||||
[2] | These accumulated other comprehensive income (loss) components are included in the computation of net periodic benefit cost. Refer to Note 9—Pension and other post-retirement benefit plans for additional details. | ||||
[3] | These accumulated other comprehensive income (loss) components are included in the computation of net periodic benefit cost. Refer to Note 9—Pension and other post-retirement benefit plans for additional details. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
OPERATING ACTIVITIES | |||
Net income | $ 21,146 | $ 177,863 | $ 168,364 |
ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES | |||
Depreciation and amortization | 162,576 | 154,138 | 132,566 |
Amortization of: | |||
Other regulatory assets and liabilities—net | 6,917 | 6,422 | 1,909 |
Debt related costs | 2,844 | 2,027 | 1,284 |
Deferred income taxes-net | (45,019) | 114,966 | 163,879 |
Distributions received from equity method investments | 19,655 | 16,738 | 0 |
Accrued/deferred pension and other post-retirement benefit cost | 11,200 | 22,601 | 19,548 |
Earnings in equity interests | (28,209) | (20,216) | (13,806) |
Compensation expense related to stock-based awards | 20,377 | 17,154 | 12,308 |
Provision for doubtful accounts | 23,329 | 17,212 | 13,036 |
Impairment loss | 71,969 | 0 | 4,110 |
Gain on consolidation | 0 | (1,807) | 0 |
Unrealized (gain) loss on derivative contracts | 3,317 | (85,591) | (24,774) |
Amortization of investment tax credits | (7,398) | (7,504) | (6,132) |
Other non-cash charges (credits)—net | (8,161) | (840) | (1,308) |
Changes in operating assets and liabilities (Note 19) | 68,300 | (178,937) | (239,976) |
Net Cash Provided by Operating Activities | 322,843 | 234,226 | 231,008 |
FINANCING ACTIVITIES | |||
Capital Contributions from Parent Company | 362,728 | 0 | 0 |
Common stock issued | 0 | 293 | 78,287 |
Long-term debt issued | 550,000 | 245,556 | 498,125 |
Long-term debt retired | (250,000) | 0 | (25,000) |
Debt issuance costs | (3,087) | (665) | (445) |
Notes payable issued (retired)—net | 82,501 | 236,000 | (63,000) |
Contributions from non-controlling interest | 30,548 | 22,336 | 959 |
Distributions to non-controlling interest | (780) | (300) | 0 |
Project financing | 55,666 | 20,386 | 38,468 |
Dividends on common stock and preferred stock | (105,444) | (102,123) | (92,841) |
Other financing activities—net | (6,558) | (2,051) | (1,256) |
Net Cash Provided by (Used in) Financing Activities | 715,574 | 419,432 | 433,297 |
INVESTING ACTIVITIES | |||
Capital expenditures (excluding AFUDC) | (516,406) | (516,534) | (530,385) |
Investments in non-utility interests | (410,822) | (147,294) | (158,052) |
Distributions and receipts from non-utility interests | 0 | 4,126 | 8,254 |
Insurance proceeds related to investing properties | 3,238 | 0 | 0 |
Net proceeds from sale of assets | 0 | 9,858 | 19,749 |
Loans to external parties | 0 | (863) | (5,031) |
Net Cash Used in Investing Activities | (923,990) | (650,707) | (665,465) |
INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 114,427 | 2,951 | (1,160) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 8,524 | 5,573 | 6,733 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 122,951 | 8,524 | 5,573 |
Washington Gas Light Company | |||
OPERATING ACTIVITIES | |||
Net income | (26,642) | 131,792 | 113,114 |
ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES | |||
Depreciation and amortization | 135,071 | 129,428 | 114,605 |
Amortization of: | |||
Other regulatory assets and liabilities—net | 6,917 | 6,422 | 1,909 |
Debt related costs | 1,580 | 1,448 | 1,191 |
Deferred income taxes-net | (26,435) | 77,586 | 123,482 |
Accrued/deferred pension and other post-retirement benefit cost | 11,127 | 22,547 | 19,497 |
Compensation expense related to stock-based awards | 19,067 | 16,153 | 11,452 |
Provision for doubtful accounts | 20,224 | 14,484 | 10,945 |
Impairment loss | 37,969 | 0 | 0 |
Unrealized (gain) loss on derivative contracts | (10,379) | (48,950) | (11,552) |
Amortization of investment tax credits | (702) | (751) | (795) |
Other non-cash charges (credits)—net | (2,450) | (1,592) | (197) |
Changes in operating assets and liabilities (Note 19) | (43,050) | (141,238) | (143,526) |
Net Cash Provided by Operating Activities | 122,297 | 207,329 | 240,125 |
Changes in operating assets and liabilities (Note 19) | |||
Changes in operating assets and liabilities (Note 19) | 893 | 3,409 | 2,107 |
FINANCING ACTIVITIES | |||
Capital Contributions from Parent Company | 402,728 | 0 | 0 |
Long-term debt issued | 0 | 195,556 | 248,125 |
Long-term debt retired | 0 | 0 | (25,000) |
Debt issuance costs | (366) | (661) | (333) |
Notes payable issued (retired)—net | (27,998) | 81,000 | (47,000) |
Project financing | 53,018 | 9,314 | 38,468 |
Dividends on common stock and preferred stock | (88,908) | (87,118) | (83,116) |
Other financing activities—net | (6,197) | (1,982) | (277) |
Net Cash Provided by (Used in) Financing Activities | 332,277 | 196,109 | 130,867 |
INVESTING ACTIVITIES | |||
Capital expenditures (excluding AFUDC) | (392,830) | (403,438) | (390,741) |
Insurance proceeds related to investing properties | 3,238 | 0 | 0 |
Net proceeds from sale of assets | 0 | 0 | 19,749 |
Net Cash Used in Investing Activities | (389,592) | (403,438) | (370,992) |
INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 64,982 | 0 | 0 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 1 | 1 | 1 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 64,983 | $ 1 | $ 1 |
Consolidated Statements of Capi
Consolidated Statements of Capitalization - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 | ||
Common Shareholders' Equity | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (8,212) | $ (5,997) | ||
WGL Holdings common shareholders' equity | 1,796,478 | 1,502,690 | ||
Non-controlling Interest | 7,732 | 6,851 | ||
Total Equity | 1,832,383 | 1,537,714 | ||
Total capitalization | $ 3,712,258 | $ 2,968,575 | ||
Total Capitalization As Percentage | 100.00% | 100.00% | ||
Preferred Stock | ||||
Preferred Stock | $ 28,173 | $ 28,173 | ||
Preferred stock, percentage of total capitalization | 0.80% | 0.90% | ||
Long-Term Debt | ||||
Medium Term Notes | $ 1,996,000 | $ 1,696,000 | ||
Unamortized discount | (4,341) | (4,541) | ||
Unamortized Debt Issuance Expense | (11,784) | (10,598) | ||
Less-current maturities | 100,000 | 250,000 | ||
Total Long-term debt | $ 1,879,875 | $ 1,430,861 | ||
Long Term Debt As Percentage Of Total Capitalization | 50.60% | 48.30% | ||
Non-controlling Interest | ||||
Common Shareholders' Equity | ||||
Non-controlling Interest | $ 7,732 | $ 6,851 | ||
Non-controlling Interest, percentage of total capitalization | 0.20% | 0.20% | ||
Total Equity | ||||
Common Shareholders' Equity | ||||
Total Equity | $ 1,832,383 | $ 1,537,714 | ||
Total equity, percentage of total capitalization | 49.40% | 51.70% | ||
Due fiscal year 2018 | ||||
Long-Term Debt | ||||
Medium Term Notes | $ 0 | $ 250,000 | ||
Due fiscal year 2019 | ||||
Long-Term Debt | ||||
Medium Term Notes | 100,000 | 100,000 | ||
Due fiscal year 2020 | ||||
Long-Term Debt | ||||
Medium Term Notes | 700,000 | 150,000 | ||
Due fiscal year 2023 | ||||
Long-Term Debt | ||||
Medium Term Notes | 20,000 | 20,000 | ||
Due fiscal year 2025 | ||||
Long-Term Debt | ||||
Medium Term Notes | 40,500 | 40,500 | ||
Due fiscal year 2027 | ||||
Long-Term Debt | ||||
Medium Term Notes | 125,000 | 125,000 | ||
Due fiscal year 2028 | ||||
Long-Term Debt | ||||
Medium Term Notes | 52,000 | 52,000 | ||
Due fiscal year 2030 | ||||
Long-Term Debt | ||||
Medium Term Notes | 8,500 | 8,500 | ||
Due fiscal year 2036 | ||||
Long-Term Debt | ||||
Medium Term Notes | 50,000 | 50,000 | ||
Due fiscal year 2041 | ||||
Long-Term Debt | ||||
Medium Term Notes | 75,000 | 75,000 | ||
Due fiscal year 2044 | ||||
Long-Term Debt | ||||
Medium Term Notes | 175,000 | 175,000 | ||
Due fiscal year 2045 | ||||
Long-Term Debt | ||||
Medium Term Notes | 200,000 | 200,000 | ||
Due fiscal year 2046 | ||||
Long-Term Debt | ||||
Medium Term Notes | 450,000 | 450,000 | ||
Common Stock | ||||
Common Shareholders' Equity | ||||
Common stock, value | 595,105 | [1] | 582,716 | |
Paid-in capital | 345,202 | 10,149 | ||
Retained earnings | 864,383 | 915,822 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (8,212) | (5,997) | ||
WGL Holdings common shareholders' equity | $ 1,796,478 | $ 1,502,690 | ||
Common shareholders' equity, percentage of total capitalization | 48.40% | 50.60% | ||
$4.80 series | ||||
Preferred Stock | ||||
Preferred Stock | $ 15,000 | $ 15,000 | ||
$4.25 series | ||||
Preferred Stock | ||||
Preferred Stock | 7,173 | 7,173 | ||
$5.00 series | ||||
Preferred Stock | ||||
Preferred Stock | 6,000 | 6,000 | ||
Washington Gas Light Company | ||||
Common Shareholders' Equity | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (1,830) | (4,522) | ||
WGL Holdings common shareholders' equity | 1,442,764 | 1,164,749 | ||
Total capitalization | $ 2,555,870 | $ 2,327,383 | ||
Total Capitalization As Percentage | 100.00% | 100.00% | ||
Long-Term Debt | ||||
Medium Term Notes | $ 1,146,000 | $ 1,146,000 | ||
Unamortized discount | (2,900) | (3,042) | ||
Unamortized Debt Issuance Expense | (8,133) | (8,497) | ||
Less-current maturities | [2] | 50,000 | ||
Total Long-term debt | $ 1,084,933 | $ 1,134,461 | ||
Long Term Debt As Percentage Of Total Capitalization | 42.50% | 48.70% | ||
Washington Gas Light Company | Due fiscal year 2019 | ||||
Long-Term Debt | ||||
Medium Term Notes | $ 50,000 | $ 50,000 | ||
Washington Gas Light Company | Due fiscal year 2020 | ||||
Long-Term Debt | ||||
Medium Term Notes | 50,000 | 50,000 | ||
Washington Gas Light Company | Due fiscal year 2023 | ||||
Long-Term Debt | ||||
Medium Term Notes | 20,000 | 20,000 | ||
Washington Gas Light Company | Due fiscal year 2025 | ||||
Long-Term Debt | ||||
Medium Term Notes | 40,500 | 40,500 | ||
Washington Gas Light Company | Due fiscal year 2027 | ||||
Long-Term Debt | ||||
Medium Term Notes | 125,000 | 125,000 | ||
Washington Gas Light Company | Due fiscal year 2028 | ||||
Long-Term Debt | ||||
Medium Term Notes | 52,000 | 52,000 | ||
Washington Gas Light Company | Due fiscal year 2030 | ||||
Long-Term Debt | ||||
Medium Term Notes | 8,500 | 8,500 | ||
Washington Gas Light Company | Due fiscal year 2036 | ||||
Long-Term Debt | ||||
Medium Term Notes | 50,000 | 50,000 | ||
Washington Gas Light Company | Due fiscal year 2041 | ||||
Long-Term Debt | ||||
Medium Term Notes | 75,000 | 75,000 | ||
Washington Gas Light Company | Due fiscal year 2044 | ||||
Long-Term Debt | ||||
Medium Term Notes | 175,000 | 175,000 | ||
Washington Gas Light Company | Due fiscal year 2045 | ||||
Long-Term Debt | ||||
Medium Term Notes | 50,000 | 50,000 | ||
Washington Gas Light Company | Due fiscal year 2046 | ||||
Long-Term Debt | ||||
Medium Term Notes | 450,000 | 450,000 | ||
Washington Gas Light Company | Common Stock | ||||
Common Shareholders' Equity | ||||
Common stock, value | 46,479 | 46,479 | ||
Paid-in capital | 879,273 | 492,101 | ||
Retained earnings | 518,842 | 630,691 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (1,830) | $ (4,522) | ||
Common shareholders' equity, percentage of total capitalization | 56.40% | 50.10% | ||
Total Common Shareholder's Equity | $ 1,442,764 | $ 1,164,749 | ||
Washington Gas Light Company | Preferred Stock | ||||
Preferred Stock | ||||
Preferred Stock | $ 28,173 | $ 28,173 | ||
Preferred stock, percentage of total capitalization | 1.10% | 1.20% | ||
Washington Gas Light Company | $4.80 series | ||||
Preferred Stock | ||||
Preferred Stock | $ 15,000 | $ 15,000 | ||
Washington Gas Light Company | $4.25 series | ||||
Preferred Stock | ||||
Preferred Stock | 7,173 | 7,173 | ||
Washington Gas Light Company | $5.00 series | ||||
Preferred Stock | ||||
Preferred Stock | 6,000 | $ 6,000 | ||
ASU 2016-09 | ||||
Common Shareholders' Equity | ||||
Retained earnings | 4,300 | |||
ASU 2016-09 | Washington Gas Light Company | ||||
Common Shareholders' Equity | ||||
Retained earnings | $ 4,200 | |||
[1] | All of outstanding shares of common stock of WGL are held by Wrangler 1 LLC, an indirect wholly-owned subsidiary of AltaGas as of September 30, 2018, see note 20- Merger with AltaGas Ltd. of the Notes to Consolidated Financial Statements. | |||
[2] | Excludes unamortized discounts and debt issuance costs of $5.1 million and $11.0 million at September 30, 2018, for WGL and Washington Gas, respectively. |
Consolidated Statements of Ca_2
Consolidated Statements of Capitalization - (Parenthetical) - $ / shares | Sep. 30, 2018 | Sep. 30, 2017 | |
Common Shareholders' Equity | |||
Common Stock, Par or Stated Value Per Share | $ 0 | $ 0 | |
Common Stock, Shares Authorized | 120,000,000 | 120,000,000 | |
Common Stock, Shares, Issued | 51,219,000 | 51,080,612 | |
Preferred Stock [Abstract] | |||
Preferred Stock, Shares Authorized | 3,000,000 | 3,000,000 | |
Preferred Stock, Issued | 0 | 0 | |
Preferred Stock, Par or Stated Value Per Share (in dollars per share) | $ 0 | $ 0 | |
Due fiscal year 2018 | |||
Schedule of Capitalization [Line Items] | |||
Note Rate | 2.45% | ||
Due fiscal year 2019 | Maximum | |||
Schedule of Capitalization [Line Items] | |||
Note Rate | 7.46% | 7.46% | |
Due fiscal year 2019 | Minimum | |||
Schedule of Capitalization [Line Items] | |||
Note Rate | 3.09% | 3.09% | |
Due fiscal year 2020 | Maximum | |||
Schedule of Capitalization [Line Items] | |||
Note Rate | 4.76% | 4.76% | |
Due fiscal year 2020 | Minimum | |||
Schedule of Capitalization [Line Items] | |||
Note Rate | 2.25% | 2.25% | |
Due fiscal year 2023 | |||
Schedule of Capitalization [Line Items] | |||
Note Rate | 6.65% | 6.65% | |
Due fiscal year 2025 | |||
Schedule of Capitalization [Line Items] | |||
Note Rate | 5.44% | 5.44% | |
Due fiscal year 2027 | Maximum | |||
Schedule of Capitalization [Line Items] | |||
Note Rate | 6.82% | 6.82% | |
Due fiscal year 2027 | Minimum | |||
Schedule of Capitalization [Line Items] | |||
Note Rate | 6.40% | 6.40% | |
Due fiscal year 2028 | Maximum | |||
Schedule of Capitalization [Line Items] | |||
Note Rate | 6.85% | 6.85% | |
Due fiscal year 2028 | Minimum | |||
Schedule of Capitalization [Line Items] | |||
Note Rate | 6.57% | 6.57% | |
Due fiscal year 2030 | |||
Schedule of Capitalization [Line Items] | |||
Note Rate | 7.50% | 7.50% | |
Due fiscal year 2036 | Maximum | |||
Schedule of Capitalization [Line Items] | |||
Note Rate | 5.78% | 5.78% | |
Due fiscal year 2036 | Minimum | |||
Schedule of Capitalization [Line Items] | |||
Note Rate | 5.70% | 5.70% | |
Due fiscal year 2041 | |||
Schedule of Capitalization [Line Items] | |||
Note Rate | 5.21% | 5.21% | |
Due fiscal year 2044 | Maximum | |||
Schedule of Capitalization [Line Items] | |||
Note Rate | 5.00% | 5.00% | |
Due fiscal year 2044 | Minimum | |||
Schedule of Capitalization [Line Items] | |||
Note Rate | 4.22% | 4.22% | |
Due fiscal year 2045 | Maximum | |||
Schedule of Capitalization [Line Items] | |||
Note Rate | 4.60% | 4.60% | |
Due fiscal year 2045 | Minimum | |||
Schedule of Capitalization [Line Items] | |||
Note Rate | 4.24% | 4.24% | |
Due fiscal year 2046 | |||
Schedule of Capitalization [Line Items] | |||
Note Rate | 3.80% | 3.80% | |
Washington Gas Light Company | |||
Preferred Stock [Abstract] | |||
Preferred Stock, Shares Authorized | 1,500,000 | 1,500,000 | |
Preferred Stock, Par or Stated Value Per Share (in dollars per share) | $ 0 | $ 0 | |
Washington Gas Light Company | Due fiscal year 2019 | |||
Schedule of Capitalization [Line Items] | |||
Note Rate | 7.46% | 7.46% | |
Washington Gas Light Company | Due fiscal year 2020 | |||
Schedule of Capitalization [Line Items] | |||
Note Rate | 4.76% | 4.76% | |
Washington Gas Light Company | Due fiscal year 2023 | |||
Schedule of Capitalization [Line Items] | |||
Note Rate | 6.65% | 6.65% | |
Washington Gas Light Company | Due fiscal year 2025 | |||
Schedule of Capitalization [Line Items] | |||
Note Rate | 5.44% | 5.44% | |
Washington Gas Light Company | Due fiscal year 2027 | Maximum | |||
Schedule of Capitalization [Line Items] | |||
Note Rate | 6.82% | 6.82% | |
Washington Gas Light Company | Due fiscal year 2027 | Minimum | |||
Schedule of Capitalization [Line Items] | |||
Note Rate | 6.40% | 6.40% | |
Washington Gas Light Company | Due fiscal year 2028 | Maximum | |||
Schedule of Capitalization [Line Items] | |||
Note Rate | 6.85% | 6.85% | |
Washington Gas Light Company | Due fiscal year 2028 | Minimum | |||
Schedule of Capitalization [Line Items] | |||
Note Rate | 6.57% | 6.57% | |
Washington Gas Light Company | Due fiscal year 2030 | |||
Schedule of Capitalization [Line Items] | |||
Note Rate | 7.50% | 7.50% | |
Washington Gas Light Company | Due fiscal year 2036 | Maximum | |||
Schedule of Capitalization [Line Items] | |||
Note Rate | 5.78% | 5.78% | |
Washington Gas Light Company | Due fiscal year 2036 | Minimum | |||
Schedule of Capitalization [Line Items] | |||
Note Rate | 5.70% | 5.70% | |
Washington Gas Light Company | Due fiscal year 2041 | |||
Schedule of Capitalization [Line Items] | |||
Note Rate | 5.21% | 5.21% | |
Washington Gas Light Company | Due fiscal year 2044 | Maximum | |||
Schedule of Capitalization [Line Items] | |||
Note Rate | 5.00% | 5.00% | |
Washington Gas Light Company | Due fiscal year 2044 | Minimum | |||
Schedule of Capitalization [Line Items] | |||
Note Rate | 4.22% | 4.22% | |
Washington Gas Light Company | Due fiscal year 2045 | |||
Schedule of Capitalization [Line Items] | |||
Note Rate | 4.24% | 4.24% | |
Washington Gas Light Company | Due fiscal year 2046 | |||
Schedule of Capitalization [Line Items] | |||
Note Rate | 3.80% | 3.80% | |
Wrangler I | |||
Common Shareholders' Equity | |||
Common Stock, Shares, Issued | [1] | 100 | |
Common Stock | Washington Gas Light Company | |||
Common Shareholders' Equity | |||
Common Stock, Par or Stated Value Per Share | $ 1 | $ 1 | |
Common Stock, Shares Authorized | 80,000,000 | 80,000,000 | |
Common Stock, Shares, Issued | 46,479,536 | 46,479,536 | |
Preferred Stock | Washington Gas Light Company | |||
Preferred Stock [Abstract] | |||
Preferred Stock, Shares Authorized | 1,500,000 | 1,500,000 | |
Preferred Stock, Par or Stated Value Per Share (in dollars per share) | $ 0 | $ 0 | |
$4.80 series | |||
Preferred Stock [Abstract] | |||
Preferred Stock, Shares Outstanding (in shares) | 150,000 | 150,000 | |
Preferred Stock, Par or Stated Value Per Share (in dollars per share) | $ 4.80 | $ 4.80 | |
$4.80 series | Washington Gas Light Company | |||
Preferred Stock [Abstract] | |||
Preferred Stock, Shares Outstanding (in shares) | 150,000 | 150,000 | |
Preferred Stock, Par or Stated Value Per Share (in dollars per share) | $ 4.80 | $ 4.80 | |
$4.25 series | |||
Preferred Stock [Abstract] | |||
Preferred Stock, Shares Outstanding (in shares) | 70,600 | 70,600 | |
Preferred Stock, Par or Stated Value Per Share (in dollars per share) | $ 4.25 | $ 4.25 | |
$4.25 series | Washington Gas Light Company | |||
Preferred Stock [Abstract] | |||
Preferred Stock, Shares Outstanding (in shares) | 70,600 | 70,600 | |
Preferred Stock, Par or Stated Value Per Share (in dollars per share) | $ 4.25 | $ 4.25 | |
$5.00 series | |||
Preferred Stock [Abstract] | |||
Preferred Stock, Shares Outstanding (in shares) | 60,000 | 60,000 | |
Preferred Stock, Par or Stated Value Per Share (in dollars per share) | $ 5 | $ 5 | |
$5.00 series | Washington Gas Light Company | |||
Preferred Stock [Abstract] | |||
Preferred Stock, Shares Outstanding (in shares) | 60,000 | 60,000 | |
Preferred Stock, Par or Stated Value Per Share (in dollars per share) | $ 5 | $ 5 | |
[1] | All of outstanding shares of common stock of WGL are held by Wrangler 1 LLC, an indirect wholly-owned subsidiary of AltaGas as of September 30, 2018, see note 20- Merger with AltaGas Ltd. of the Notes to Consolidated Financial Statements. |
Consolidated Statements of Comm
Consolidated Statements of Common Shareholders Equity - USD ($) $ in Thousands | Total | Washington Gas Light Company | Washington Gas Light CompanyCommon Stock | Washington Gas Light CompanyPaid-In Capital | Washington Gas Light CompanyRetained Earnings | Washington Gas Light CompanyAccumulated Other Comprehensive Loss, Net of Taxes | Washington Gas Light CompanyTotal | WGLCommon Stock | WGLPaid-In Capital | WGLRetained Earnings | WGLAccumulated Other Comprehensive Loss, Net of Taxes | WGLWGL Common Shareholders' Equity | WGLNon-controlling Interest | WGLWashington Gas Light Company Preferred Stock | WGLTotal Equity | WGLWashington Gas Light CompanyPaid-In Capital | WGLWashington Gas Light CompanyTotal | WGLAltaGas Ltd.Paid-In Capital | WGLAltaGas Ltd.WGL Common Shareholders' Equity | WGLAltaGas Ltd.Total Equity | Common Stock | Common StockWashington Gas Light Company | ASU 2016-09 | ASU 2016-09Washington Gas Light Company | ASU 2018-02 | ASU 2018-02Washington Gas Light Company | AltaGas Ltd.WGLWrangler ICommon Stock | |||||||||||||
Beginning Balance, shares at Sep. 30, 2015 | 46,479,536 | 49,728,662 | ||||||||||||||||||||||||||||||||||||||
Common shareholders' equity, beginning balance at Sep. 30, 2015 | $ 46,479 | $ 483,677 | $ 557,848 | $ (6,712) | $ 1,081,292 | $ 485,456 | $ 14,934 | $ 757,093 | $ (14,236) | $ 1,243,247 | $ 28,173 | |||||||||||||||||||||||||||||
Total Equity, beginning balance at Sep. 30, 2015 | $ 1,271,420 | |||||||||||||||||||||||||||||||||||||||
Net income | $ 168,364 | $ 113,114 | 113,114 | 113,114 | 167,594 | 167,594 | ||||||||||||||||||||||||||||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 168,364 | |||||||||||||||||||||||||||||||||||||||
Non-controlling interest | (550) | $ (550) | ||||||||||||||||||||||||||||||||||||||
Contributions from non-controlling interest | 959 | 959 | ||||||||||||||||||||||||||||||||||||||
OTHER COMPREHENSIVE INCOME (LOSS) | (24,303) | (1,118) | (1,118) | (1,118) | (24,303) | (24,303) | (24,303) | |||||||||||||||||||||||||||||||||
Stock-based compensation | (4,458) | [1] | (4,458) | [1] | $ (6,742) | (2,415) | (164) | 4,163 | 4,163 | |||||||||||||||||||||||||||||||
Stock-based compensation, Shares | 115,974 | |||||||||||||||||||||||||||||||||||||||
Issuance of common stock, value | [2] | $ 82,298 | 82,298 | 82,298 | ||||||||||||||||||||||||||||||||||||
Capital Contributions from Parent Company | 0 | 0 | ||||||||||||||||||||||||||||||||||||||
Issuance of common stock (in shares) | [2] | 1,235,976 | ||||||||||||||||||||||||||||||||||||||
Preferred Stock Dividends, Income Statement Impact | 1,320 | |||||||||||||||||||||||||||||||||||||||
Dividends Abstract | ||||||||||||||||||||||||||||||||||||||||
Common Stock | (82,980) | (82,980) | (97,438) | (97,438) | (97,438) | |||||||||||||||||||||||||||||||||||
Preferred Stock | (1,320) | (1,320) | (1,320) | (1,320) | ||||||||||||||||||||||||||||||||||||
Common shareholders' equity, ending balance at Sep. 30, 2016 | $ 46,479 | 488,135 | 586,662 | (7,830) | 1,113,446 | $ 574,496 | 12,519 | 827,085 | (38,539) | 1,375,561 | 409 | 28,173 | ||||||||||||||||||||||||||||
Total Equity, ending balance at Sep. 30, 2016 | 1,404,143 | |||||||||||||||||||||||||||||||||||||||
Ending Balance, shares at Sep. 30, 2016 | 46,479,536 | 51,080,612 | ||||||||||||||||||||||||||||||||||||||
Net income | 177,863 | 131,792 | 131,792 | 131,792 | 192,620 | 192,620 | ||||||||||||||||||||||||||||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 177,863 | |||||||||||||||||||||||||||||||||||||||
Non-controlling interest | (16,077) | (16,077) | ||||||||||||||||||||||||||||||||||||||
Contributions from non-controlling interest | 22,336 | 22,336 | ||||||||||||||||||||||||||||||||||||||
Distributions to non-controlling interest | (300) | (300) | ||||||||||||||||||||||||||||||||||||||
Business Combination | [3] | 483 | 483 | |||||||||||||||||||||||||||||||||||||
OTHER COMPREHENSIVE INCOME (LOSS) | 32,542 | 3,308 | 3,308 | 3,308 | 32,542 | 32,542 | 32,542 | |||||||||||||||||||||||||||||||||
Stock-based compensation | (3,966) | [1] | (3,966) | [1] | $ (6,564) | [4] | (2,370) | [4] | (549) | [4] | 3,645 | [4] | 3,645 | [4] | ||||||||||||||||||||||||||
Stock-based compensation, Shares | [4] | 112,146 | ||||||||||||||||||||||||||||||||||||||
Issuance of common stock, value | [2] | $ 1,656 | 1,656 | 1,656 | ||||||||||||||||||||||||||||||||||||
Capital Contributions from Parent Company | 0 | 0 | ||||||||||||||||||||||||||||||||||||||
Issuance of common stock (in shares) | [2] | 26,242 | ||||||||||||||||||||||||||||||||||||||
Preferred Stock Dividends, Income Statement Impact | 1,320 | |||||||||||||||||||||||||||||||||||||||
Dividends Abstract | ||||||||||||||||||||||||||||||||||||||||
Common Stock | (86,443) | (86,443) | (103,334) | (103,334) | (103,334) | |||||||||||||||||||||||||||||||||||
Preferred Stock | (1,320) | (1,320) | (1,320) | (1,320) | ||||||||||||||||||||||||||||||||||||
Common shareholders' equity, ending balance at Sep. 30, 2017 | 1,502,690 | 1,164,749 | $ 46,479 | 492,101 | 630,691 | (4,522) | 1,164,749 | $ 582,716 | 10,149 | 915,822 | (5,997) | 1,502,690 | 6,851 | 28,173 | $ 1,502,690 | |||||||||||||||||||||||||
Total Equity, ending balance at Sep. 30, 2017 | 1,537,714 | $ 1,164,749 | ||||||||||||||||||||||||||||||||||||||
Ending Balance, shares at Sep. 30, 2017 | 46,479,536 | 51,219,000 | ||||||||||||||||||||||||||||||||||||||
Retained Earnings (Accumulated Deficit) | (915,822) | (630,691) | ||||||||||||||||||||||||||||||||||||||
Net income | 21,146 | (26,642) | (26,642) | (26,642) | 49,343 | 49,343 | ||||||||||||||||||||||||||||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 21,146 | |||||||||||||||||||||||||||||||||||||||
Non-controlling interest | (29,517) | (29,517) | ||||||||||||||||||||||||||||||||||||||
Contributions from non-controlling interest | 30,548 | 30,548 | ||||||||||||||||||||||||||||||||||||||
Distributions to non-controlling interest | (780) | (780) | ||||||||||||||||||||||||||||||||||||||
Business Combination | [3] | 630 | 630 | |||||||||||||||||||||||||||||||||||||
OTHER COMPREHENSIVE INCOME (LOSS) | (2,215) | 2,692 | 4,176 | 4,176 | (382) | (382) | (382) | |||||||||||||||||||||||||||||||||
Stock-based compensation | (15,556) | [1] | (4,197) | [1] | (11,359) | [1] | $ (12,389) | [4] | (27,675) | [4] | (3,996) | [4] | (11,290) | [4] | (11,290) | [4] | ||||||||||||||||||||||||
Stock-based compensation, Shares | [4] | 140,182 | ||||||||||||||||||||||||||||||||||||||
Capital Contributions from Parent Company | 362,728 | 402,728 | $ 402,728 | $ 402,728 | $ 362,728 | $ 362,728 | $ 362,728 | |||||||||||||||||||||||||||||||||
Preferred Stock Dividends, Income Statement Impact | 1,320 | |||||||||||||||||||||||||||||||||||||||
Dividends Abstract | ||||||||||||||||||||||||||||||||||||||||
Common Stock | (89,568) | (89,568) | (106,611) | (106,611) | (106,611) | |||||||||||||||||||||||||||||||||||
Preferred Stock | (1,320) | (1,320) | (1,320) | (1,320) | ||||||||||||||||||||||||||||||||||||
Common shareholders' equity, ending balance at Sep. 30, 2018 | $ 1,796,478 | $ 1,442,764 | $ 46,479 | $ 879,273 | 518,842 | (1,830) | $ 1,442,764 | $ 595,105 | [5] | $ 345,202 | [5] | 864,383 | [5] | (8,212) | [5] | $ 1,796,478 | [5] | $ 7,732 | [5] | $ 28,173 | [5] | 1,796,478 | ||||||||||||||||||
Total Equity, ending balance at Sep. 30, 2018 | $ 1,832,383 | [5] | 1,442,764 | |||||||||||||||||||||||||||||||||||||
Ending Balance, shares at Sep. 30, 2018 | [5] | 100 | ||||||||||||||||||||||||||||||||||||||
Retained Earnings (Accumulated Deficit) | $ (864,383) | $ (518,842) | $ (4,300) | $ (4,200) | $ 1,800 | $ 1,500 | ||||||||||||||||||||||||||||||||||
ASU 2018-02 adoption impact | $ 1,484 | [6] | $ (1,484) | [6] | $ 1,833 | [7] | $ (1,833) | [7] | ||||||||||||||||||||||||||||||||
Post-merger shares converted | 100 | |||||||||||||||||||||||||||||||||||||||
Outstanding shares of common stock converted into the right to receive cash | [5] | 51,359,182 | ||||||||||||||||||||||||||||||||||||||
[1] | Stock-based compensation is based on the stock awards of WGL that are allocated to Washington Gas Light Company for its pro-rata share. We recorded $4.2 million commutative adjustments to retained earnings for the fiscal year 2018 due to the adoption of ASU 2016-09. See Note 1—Accounting policies of the Notes to Consolidated Financial Statements. We accelerated the vesting of stock-based awards upon the consummation of the Merger with AltaGas during the 4th quarter of fiscal year 2018, which reduced the paid-in capital. see Note 10—Stocked-Based Compensation for a further discussion. | |||||||||||||||||||||||||||||||||||||||
[2] | Includes shares issued under the ATM program and the dividend reinvestment and common stock purchase plans. | |||||||||||||||||||||||||||||||||||||||
[3] | Resulted from the consolidation of ASD Solar LP (ASD). For more information, see Note 16—Other investments of the Notes to Consolidated Financial Statements. | |||||||||||||||||||||||||||||||||||||||
[4] | Includes dividend equivalents related to our performance shares. We recorded $4.3 million commutative adjustments to retained earnings for the fiscal year 2018 due to the adoption of ASU 2016-09. see Note 1—Accounting policies of the Notes to Consolidated Financial Statements. We accelerated the vesting of stock-based awards upon the consummation of the Merger with AltaGas during the 4th quarter of fiscal year 2018, which reduced the paid-in capital. see Note 10—Stocked-Based Compensation for a further discussion. | |||||||||||||||||||||||||||||||||||||||
[5] | Upon consummation of the Merger on July 6, 2018. WGL common stock issued and outstanding immediately prior to the Merger was converted into the right to receive the merger consideration of $88.25 per share and ceased to be outstanding. Each share of the Merger Sub's issued and outstanding common stock at the time of the consummation of the Merger was converted into one share of no par value WGL common stock for a total of 100 WGL post-Merger shares owned by Wrangler 1 LLC, an indirect wholly owned subsidiary of AltaGas. As a result of the Merger, WGL's common stock was delisted from the New York Stock Exchange, and there is no longer a market for WGL’s common stock. | |||||||||||||||||||||||||||||||||||||||
[6] | Amount related to the adoption of ASU 2018-02. Washington Gas reclassified a credit of $1.5 million from AOCI to retained earnings at September 30, 2018. See Note 1—Accounting policies of the Notes to Consolidated Financial Statements. | |||||||||||||||||||||||||||||||||||||||
[7] | Amount related to adoption of ASU 2018-02. WGL reclassified a credit of $1.8 million from AOCI to retained earnings at September 30, 2018. see Note 1—Accounting policies of the Notes to Consolidated Financial Statements |
Consolidated Statements of Co_2
Consolidated Statements of Common Shareholders Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share) | $ 1.5400 | $ 2.0175 | $ 1.9250 |
Accounting Policies
Accounting Policies | 12 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Business Description and Accounting Policies [Text Block] | ACCOUNTING POLICIES General On January 25, 2017 , WGL entered into a Merger Agreement to combine with AltaGas. On July 6, 2018 , the Merger was consummated between AltaGas, WGL, and the Merger Sub, a newly formed indirect wholly owned subsidiary of AltaGas. The Merger Agreement provided for the Merger of the Merger Sub with and into WGL, with WGL surviving as an indirect wholly owned subsidiary of AltaGas. In connection with the Merger, WGL established the SPE for the purposes of owning the common stock of Washington Gas. The SPE is a wholly owned subsidiary of WGL. In addition, WGL continues to own all of the shares of common stock of Washington Gas Resources and Hampshire. Washington Gas Resources owns all of the shares of common stock of four non-utility subsidiaries that include WGL Energy Services, WGL Energy Systems, WGL Midstream and WGSW. Except where the content clearly indicates otherwise, “WGL,” “we,” “us” or “our” refers to the holding company or the consolidated entity of WGL Holdings, Inc. and all of its subsidiaries. Unless otherwise noted, these notes apply equally to WGL and Washington Gas. Refer to Note 20— Merger with AltaGas, Ltd. , of the Notes to the Consolidated Financial Statements for a further discussion of the Merger Agreement. Nature of Operations Washington Gas and Hampshire comprise our regulated utility segment. Washington Gas is a public utility that sells and delivers natural gas to more than one million customers primarily in the District of Columbia and the surrounding metropolitan areas in Maryland and Virginia. Deliveries to firm residential and commercial customers accounted for 77% of the total therms delivered to customers by Washington Gas in the fiscal year ended September 30, 2018 . Deliveries to interruptible customers accounted for 13% and deliveries to customers who use natural gas to generate electricity accounted for 10% . These amounts do not include deliveries related to Washington Gas’ asset optimization program discussed below. Hampshire operates an underground natural gas storage facility that provides services exclusively to Washington Gas. Hampshire is regulated under a cost of service tariff by the FERC. The retail energy-marketing segment consists of WGL Energy Services which competes with regulated utilities and other unregulated third-party marketers to sell natural gas and electricity directly to residential, commercial, industrial and governmental customers with the objective of earning a profit through competitive pricing. The commodities that WGL Energy Services sells are delivered to retail customers through assets owned by regulated utilities. Washington Gas delivers the majority of natural gas sold by WGL Energy Services, and unaffiliated electric utilities deliver all of the electricity sold. WGL Energy Services owned multiple solar PV distributed generation assets at September 30, 2018 , though the results from these activities are presented in the commercial energy systems segment. Other than these facilities, WGL Energy Services does not own or operate any other natural gas or electric generation, production, transmission or distribution assets. At September 30, 2018 , WGL Energy Services served approximately 108,900 natural gas customers and approximately 101,700 electricity customers located in Maryland, Virginia, Delaware, Pennsylvania and the District of Columbia. The commercial energy systems segment consists of WGL Energy Systems, WGSW and the results of operations of affiliate-owned commercial distributed energy projects. This segment focuses on clean and energy efficient solutions for its customers, driving earnings through: (i) upgrading the mechanical, electrical, water and energy-related infrastructure of large governmental and commercial facilities by implementing both traditional and alternative energy technologies; (ii) owning and operating distributed generation assets such as solar PV systems, combined heat and power plants, and natural gas fuel cells and (iii) investments in residential and commercial retail solar PV companies. In addition to our primary markets, this segment provides customized energy solutions across a much wider footprint, with business activities across the United States. The midstream energy services segment, which consists of the operations of WGL Midstream, specializes in the investment, management, development and optimization of natural gas storage and transportation midstream infrastructure projects. WGL Midstream enters into both physical and financial transactions in a manner intended to utilize energy risk management products to mitigate risks while seeking to maximize potential profits from the optimization of the transportation and storage assets it has under contract. WGL Midstream has an equity interest in four on going pipeline projects. Refer to Note 15— Operating Segment Reporting for further discussion of our segments. CONSOLIDATION OF FINANCIAL STATEMENTS The Consolidated Financial Statements of WGL have been prepared in conformity with GAAP and under the rules of the Securities and Exchange Commission (SEC). The consolidated financial statements include the accounts of WGL and its subsidiaries during the fiscal years reported. Inter-company transactions have been eliminated. Refer to Note 17— Related Party Transactions for a discussion of inter-company transactions. At September 30, 2018 WGL has a variable interest in six investments that qualify as variable interest entities (VIEs). WGSW is the primary beneficiary for five of its VIEs; SFGF, SFRC, SFGF II, ASD and SFEE and accordingly, have been consolidated. WGL Midstream has a variable interest in Meade but is not the primary beneficiary of it; therefore, WGL has not consolidated this VIE entity. Refer to Note 16— Other Investments for a discussion of VIEs and other investments. The Merger with AltaGas was recorded using the acquisition method of accounting. Under SEC regulations, WGL elected to not apply push down accounting to the stand alone WGL financial statements. The acquisition adjustments were recorded by AltaGas. The information presented in this annual report on Form 10-K are presented solely for the registrant WGL and Washington Gas on a stand-alone basis. As a result of the Merger, there were no changes in accounting principles and practices or method of application that had a material effect on the financial results for fiscal year ended September 30, 2018. USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS In accordance with GAAP, we make certain estimates and assumptions regarding: (i) reported assets and liabilities; (ii) disclosed contingent assets and liabilities at the date of the financial statements and (iii) reported revenues, revenues subject to refund, and expenses during the reporting period. Actual results could differ from those estimates. CHANGE IN ACCOUNTING PRINCIPLE AND STORAGE GAS VALUATION METHODS On October 1, 2017, Washington Gas and WGL Energy Services implemented a voluntary change in the application of an accounting principle with respect to accounting for natural gas, propane, and odorant inventories. Washington Gas and WGL Energy Services now apply the average cost methodology under which the cost of units carried in inventory is based on the weighted average cost per unit of inventory. Prior to this change, Washington Gas and WGL Energy Services applied the First-in First-out (FIFO) method of accounting for inventory under which the oldest inventory items were recorded as being sold first. We believe the new policy is preferable as it conforms to the method predominately used by our peers, better reflects the physical flow of inventory, conforms to the method used for certain of our other inventories, and will simplify recordkeeping requirements. The change in accounting principle was implemented on a prospective basis, therefore, we did not retrospectively adjust any prior periods or record a cumulative effect adjustment, as discussed below. Washington Gas implemented the change in accounting principle on a prospective basis in accordance with ASC Topic 980, which permits regulated entities to implement changes for financial reporting purposes in the same way those changes are implemented for regulatory reporting purposes when the change impacts allowable costs. WGL Energy Services implemented the change on a prospective basis as the impact on its financial statements for all periods presented, including the cumulative effect at October 1, 2017, was immaterial. The difference during the quarter between the prior FIFO method and the new average cost method was immaterial. WGL Midstream continues to account for its inventory using the weighted average cost method. On October 1, 2017, WGL adopted ASU 2015-11, Inventory (Topic 330) - Simplifying the Measurement of Inventory. This standard modified the previous calculation for valuing inventory. As a result of the new standard, beginning October 1, 2017, our inventory balances are stated at the lower of cost or net realizable value. Prior to October 1, 2017, our inventory balances were stated at the lower of cost or market. Interim period inventory losses attributable to lower of cost or net realizable value adjustments may be reversed if the net realizable value of the inventory is recovered by the end of the same fiscal year. For more information see ASU 2015-11 in the accounting standards adopted in fiscal year 2018 table below. Washington Gas and WGL did not record a lower-of-cost or net realizable value adjustment to net income for the fiscal year ended September 30, 2018 or a lower-of-cost or market adjustment to net income for the fiscal year ended September 30, 2017. During the fiscal year ended September 30, 2016, Washington Gas did not record a lower-of-cost or market adjustment to net income and WGL recorded quarterly adjustments that netted to zero. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment (comprised principally of utility plant) are stated at original cost, including labor, materials, taxes and overhead costs incurred during the construction period. The cost of utility plant of Washington Gas includes an allowance for funds used during construction (AFUDC) that is calculated under a formula prescribed by our regulators in Maryland and the District of Columbia. Washington Gas capitalizes AFUDC as a component of construction overhead. The rates for AFUDC for fiscal years September 30, 2018 , 2017 and 2016 were 2.42% , 2.73% and 5.51% , respectively. In addition, WGL Energy Systems and WGL Midstream incurs capitalized interest during the cost of constructing and acquiring their long-term assets, including investments accounted for by the equity method. For the fiscal years ended September 30, 2018 , 2017 and 2016 , WGLH recorded capitalized interest expense of $ 11.1 million , $ 2.9 million and $ 2.1 million , respectively. Washington Gas charges maintenance and repairs directly to operating expenses. Washington Gas capitalizes betterments and renewal costs and calculates depreciation applicable to its utility gas plant in service primarily using a straight-line method over the estimated remaining life of the plant. The composite depreciation and amortization rate of the regulated utility segment was 2.78% , 2.80% and 2.70% during fiscal years 2018 , 2017 and 2016 , respectively. In accordance with regulatory requirements, such rates include a component related to asset removal costs for Washington Gas. These asset removal costs are accrued through depreciation expense with a corresponding credit to “Regulatory liabilities—Accrued asset removal costs.” When Washington Gas retires depreciable utility plant and equipment, it charges the associated original costs to “Accumulated depreciation and amortization” and any related removal costs incurred are charged to “Regulatory liabilities—Accrued asset removal costs.” Washington Gas periodically reviews the adequacy of its depreciation rates by considering estimated remaining lives and other factors. For information about Asset Retirement Obligations (ARO’s), refer to the section entitled “Asset Retirement Obligations”. At September 30, 2018 and 2017 , 87.3 % and 87.2% , respectively, of WGL’s consolidated original cost of property, plant and equipment was related to the regulated utility segment as shown below. Property, Plant and Equipment at Original Cost ($ In millions) September 30, 2018 2017 Regulated utility segment Distribution, transmission and storage $ 4,808.7 74.1 % $ 4,544.7 74.0 % General, miscellaneous and intangibles 539.4 8.3 % 548.5 8.9 % Construction work in progress (CWIP) 317.3 4.9 % 264.8 4.3 % Total regulated utility segment 5,665.4 87.3 % 5,358.0 87.2 % Unregulated segments 820.3 12.7 % 786.0 12.8 % Total $ 6,485.7 100.0 % $ 6,144.0 100.0 % IMPAIRMENT OF LONG-LIVED ASSETS Management regularly reviews property and equipment and other long-lived assets, including certain definite-lived intangible assets and our equity method investments for possible impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. For our properties and equipment, the indicators of potential impairment may include a deteriorating business or legal climate, a significant adverse change in asset condition, specific regulatory disallowance, advances in technology or plans to dispose of an asset significantly before the end of its useful life, among others. Management performs the recoverability test whenever the indicators show a possible impairment. The amount used to test recoverability is determined based on an estimate of undiscounted cash flows, and measurement of an impairment loss is determined based on the fair value of the assets. The determination of fair value requires management to make assumptions about future cash inflows and outflows over the life of an asset. Any changes to the assumptions used for the future cash flow could result in revisions to the evaluation of the recoverability of the long-lived assets and the recognition of an impairment loss in the Consolidated Financial Statements. For our equity method investments, an impairment is recorded when the investment has experienced decline in value that is other-than-temporary. Additionally, if the projects in which we hold an investment recognize an impairment loss, we would record our proportionate share of that impairment loss and evaluate the investment for decline in value that is other-than-temporary. This review occurs quarterly, or more frequently if events or changes in circumstances indicate the carrying amount of the asset may not be recoverable. During the fiscal year ended September 30, 2018, management determined that, in light of the recent actions taken by the courts and regulators related to our equity method investment in Constitution, the decline in value was other-than-temporary, resulting in WGL recording an impairment charge of $ 34.0 million in “Equity in earnings of unconsolidated affiliates” that reduced our investment in Constitution to its estimated fair market value. Additionally, Washington Gas recorded a $ 38.0 million impairment to Property, Plant and Equipment in connection with an agreement not to seek recovery of certain costs incurred under the Formal Case 1027 mechanical coupling program. During the fiscal year ended September 30, 2017, WGL did not record any impairments related to our long-lived assets. During the fiscal year ended September 30, 2016, WGL recorded a $ 4.1 million impairment for the Nextility investment in direct financing leases. Refer to Note 14 — Fair Value Measurements, Note 16 — Other Investments and Note 20 — Merger with AltaGas, Ltd. , of the Notes to Consolidated Financial Statements for further discussion of these assets. OPERATING LEASES We have classified the leases of multiple office locations as operating leases. We amortize as rent expense the total of all scheduled lease payments (including lease payment escalations) and tenant allowances on a straight-line basis over the term of the leases. For this purpose, the lease term began on the date when the lessor commenced constructing the leasehold improvements which allowed us to occupy the respective locations. Leasehold improvement costs are classified as “Property, Plant and Equipment” on the Balance Sheets, and are being amortized to depreciation and amortization expense on a straight-line basis over the non-cancelable period of the leases. Refer to Note 12— Commitments and Contingencies for financial data for all of our operating leases. CASH AND CASH EQUIVALENTS We consider all investments with original maturities of three months or less to be cash equivalents RESTRICTED CASH AND CASH EQUIVALENTS Restricted cash and cash equivalents represent funds that are restricted to satisfy designated liabilities. Restricted cash and cash equivalents available to satisfy designated current liabilities are classified as current assets. Restricted cash and cash equivalents expected to satisfy non-current liabilities are classified as non-current assets. Pursuant to the Merger Agreement with AltaGas, we funded rabbi trusts of retirement benefits for executives and select management employees and deferred compensation benefits for outside directors during the fourth quarter of fiscal year 2018. As of September 30, 2018, the rabbi trust funds are invested in money market funds which are considered as cash equivalents. The rabbi trust funds that are used for the settlement of benefit plans in long-term liabilities are classified in “Deferred charges and other assets-other”. The rabbi trust funds to settle benefit plans in current liabilities are classified in “Current Assets-Other” on both WGL’s and Washington Gas’ balance sheets. We did not have any restricted cash and cash equivalents as of September 30, 2017. Refer to Note 9- Pension and Other Post-Retirement Benefits for a further discussion of the rabbi trusts and Note 19- Supplemental Cash Flow Information for a further discussion of restricted cash and cash equivalents. REVENUE AND COST RECOGNITION Regulated Utility Operations Revenues. For regulated deliveries of natural gas, Washington Gas reads meters and bills customers on a 19 -day monthly cycle basis. The billing cycles for customers do not coincide with the accounting periods used for financial reporting purposes; therefore, Washington Gas accrues unbilled revenues for gas delivered, but not yet billed, at the end of each accounting period. Cost of Gas. Washington Gas’ jurisdictional tariffs contain mechanisms that provide for the recovery of the cost of gas incurred on behalf of firm customers, including related pipeline transportation and storage capacity charges. Under these mechanisms, Washington Gas periodically adjusts its firm customers’ rates to reflect increases and decreases in these costs. Under or over-collections of gas costs in the current cycle are charged or credited to deferred charges or credits on the balance sheet as non-current regulatory assets or liabilities. Amounts deferred at the end of the cycle, August 31 of each year, are fully reconciled and transferred to current assets or liabilities under the balance sheet captions “Gas costs and other regulatory assets” and “Gas costs and other regulatory liabilities.” These balances are recovered or refunded to customers over the subsequent 12 month period. Revenue Taxes. Revenue taxes such as gross receipts taxes, Public Service Commission (PSC) fees, franchise fees and energy taxes are reported gross in operating revenues. During fiscal years ended September 30, 2018 , 2017 and 2016 , $ 82.5 million , $75.1 million , and $73.0 million , respectively, were recorded to operating revenues. Transportation Gas Imbalance. Interruptible shippers and third-party marketer shippers transport gas to Washington Gas’ distribution system as part of the unbundled services offered. The delivered volumes of gas from third-party shippers into Washington Gas’ distribution system rarely equal the volumes billed to third-party marketer customers, resulting in transportation gas imbalances. These imbalances are usually short-term in duration, and Washington Gas monitors the activity and regularly notifies the shippers when their accounts have an imbalance. In accordance with regulatory treatment, Washington Gas does not record a receivable from or liability to third-party marketers associated with gas volumes related to these transportation imbalances but, rather, reflects the financial impact as a regulatory asset or liability related to its gas cost adjustment mechanism, thereby eliminating any profit or loss that would occur as a result of the imbalance. The regulatory treatment combines the imbalance for all marketers, including WGL Energy Services, into a single “net” adjustment to the regulatory asset or liability. Refer to Note 17— Related Party Transactions for further discussion of the accounting for these imbalance transactions. Asset Optimization Program. Washington Gas optimizes the value of its long-term natural gas transportation and storage capacity resources by entering into physical and financial transactions in the form of forwards, futures and option contracts for periods when these resources are not being used to physically serve utility customers. Refer to “Derivative Activities” below for further discussion of the accounting for derivative transactions entered into under this program. Regulatory sharing mechanisms in all three jurisdictions allow the profit from these transactions to be shared between Washington Gas’ customers and shareholders. All unrealized fair value gains and losses, and margins generated from the physical and financial settlement of these asset optimization contracts are recorded in "Utility cost of gas" on the income statement or, in the case of amounts to be shared with rate payers, regulatory assets/liabilities on the balance sheet. Non-Utility Operations Retail Energy-Marketing Segment. WGL Energy Services sells natural gas and electricity on an unregulated basis to residential, commercial and industrial customers both inside and outside the Washington Gas service territory. WGL Energy Services enters into indexed or fixed-rate contracts with residential, commercial and industrial customers for sales of natural gas and electricity. Customer contracts typically have terms less than 24 months, but may extend up to 5 years . WGL Energy Services bills customers based upon metered gas and electricity usage. Usage is measured either on a cycle basis at customer premises or based on quantities delivered to the local utility, both of which may vary by month. The billing cycles for customers do not coincide with the accounting periods used for financial reporting purposes; therefore, WGL Energy Services accrues unbilled revenues for gas and electricity delivered, but not yet billed, at the end of each accounting period. In addition, WGL Energy Services periodically makes spot sales in the wholesale market due to specific delivery requirements or to reduce customer supply costs. Revenues are reflected in “Operating Revenues—Non- utility.” WGL Energy Services procures natural gas and electricity supply under contract structures in which it assembles the various components of supply from multiple suppliers to match its customer requirements. The cost of natural gas and electricity for these purchases is recorded using the contracted volumes and prices in “Non-Utility cost of energy-related sales.” Commercial Energy Systems Segment. WGL Energy Systems recognizes income and expenses for all design-build construction contracts using the percentage-of-completion method in “Operating Revenues—Non-utility” and “Non-Utility cost of energy-related sales.” WGL Energy Systems also recognizes income from its distributed energy assets based on the terms of the related power purchase agreements. Renewable Energy Certificates (RECs) are generated by WGL Energy Systems after every 1,000 Kilowatt-hours (kWh) of electricity are produced by an eligible solar facility. WGL Energy Systems recognizes income on the sale of RECs based on the contractual terms and conditions of the sale. Refer to Note 16— Other Investments for discussion of our income from operating lease arrangements and equity method investments. Midstream Energy Services Segment. WGL Midstream nets its revenues and costs related to its trading activities in "Operating Revenues—Non-utility". Any profits and losses from WGL Midstream's pipeline investments are included in “Equity in earnings of unconsolidated affiliates” in the accompanying Consolidated Statement of Income and are added to or subtracted from the carrying amount of WGL’s investment balance. Refer to Note 16— Other Investments for discussion of our pipeline equity method investments. WEATHER-RELATED INSTRUMENTS Periodically, we purchase certain weather-related instruments, such as HDD derivatives and CDD derivatives. We account for these weather related instruments in accordance with ASC Subtopic 815-45, Derivatives and Hedging—Weather Derivatives. For HDD derivatives, benefits or costs are ultimately recognized to the extent actual HDDs fall above or below the contractual HDDs for each instrument. Benefits or costs are recognized for CDD derivatives when the average temperature exceeds or is below a contractually stated level during the contract period. Premiums for weather-related instruments are amortized based on the pattern of normal temperature days over the coverage period. Weather-related instruments for which we collect a premium are carried at fair value. Refer to Note 13— Derivative and Weather-Related Instruments for further discussion of our weather-related instruments. DERIVATIVE ACTIVITIES Regulated Utility. Washington Gas enters into both physical and financial derivative contracts for the purchase and sale of natural gas that are subject to mark-to-market accounting. Changes in the fair value of derivative instruments which are recoverable or refundable to customers when they settle are subject to ASC Topic 980 and are recorded as regulatory assets or liabilities while changes in the fair value of derivative instruments not affected by rate regulation are reflected in earnings. As part of its asset optimization program, Washington Gas enters into derivative contracts related to the sale and purchase of natural gas at a future price with the primary objective of securing operating margins that Washington Gas expects to ultimately realize. The derivatives used under this program may cause significant period-to-period volatility in earnings for the portion of net profits retained for shareholders; however, this earnings volatility will not change the realized margins that Washington Gas expects to earn. In accordance with ASC Topic 815, all financially and physically settled contracts under our asset optimization program are reported on a net basis in the statements of income in “Utility cost of gas”. From time to time, Washington Gas also utilizes derivative instruments that are designed to minimize the risk of interest-rate volatility associated with planned issuances of long-term debt. Gains or losses associated with these derivative transactions are deferred as regulatory assets or liabilities and amortized to interest expense in accordance with regulatory accounting requirements. Refer to Note 13— Derivative and Weather-Related Instruments for further discussion of our derivative activities. Non-Utility Operations. WGL Energy Services enters into both physical and financial contracts for the purchase and sale of natural gas and electricity. WGL Energy Services designates a portion of these physical contracts related to the purchase of natural gas and electricity to serve our customers as “normal purchases and normal sales;” therefore, they are not subject to the mark-to-market accounting requirements of ASC Topic 815. WGL Energy Services records these derivatives as revenues or expenses depending on the nature of the economically hedged item. WGL Midstream enters into derivative contracts for the purpose of optimizing its storage and transportation capacity as well as managing the transportation and storage assets on behalf of third parties. The financial contracts and the portion of the physical contracts that qualify as derivative instruments are subject to the mark-to-market accounting requirements and are recorded on the balance sheet at fair value and are reflected in earnings. WGL Midstream nets financial and physical contracts in "Operating Revenues-Non-utility". WGL may, from time to time, designate interest rate swaps used to manage the interest rate risk associated with future debt issuances, as cash flow hedges. Any gains or losses arising from the effective portion of cash flow hedges are recorded in other comprehensive income and are amortized using the effective interest rate method into earnings over the same period as the hedged interest payments are made. Gains or losses arising from the ineffective portion of cash flow hedges are recognized in earnings immediately. INCOME TAXES We recognize deferred income tax assets and liabilities for all temporary differences between the financial statement basis and the tax basis of assets and liabilities, including those that are currently excluded for ratemaking purposes of Washington Gas. Regulatory assets or liabilities, corresponding to such additional deferred income tax assets or liabilities, may be recorded to the extent recoverable from or payable to customers through the ratemaking process in future periods. Refer to Note 2— Regulated Operations for Washington Gas’ regulatory assets and liabilities associated with income taxes due from and due to customers at September 30, 2018 and 2017 . Amounts applicable to income taxes due from and due to customers primarily represent differences between the financial statement basis and tax basis of net utility plant in service. We amortize investment tax credits as reductions to income tax expense over the estimated service lives of the related properties. Refer to Note 8— Income Taxes which provides detailed financial information related to our income taxes. STOCK-BASED COMPENSATION We generally account for stock-based compensation expense in accordance with ASC Topic 718, Compensation-Stock Compensation, which requires us to measure and recognize stock-based compensation expense in our financial statements based on the fair value at the date of grant for our equity-classified share-based awards. If the awards have a performance condition that is not a market condition, stock-based compensation expense is adjusted on the probable outcome of that condition. If the awards have a market condition, stock-based compensation expense is not adjusted to reflect the ultimate achievement of the market condition. For liability-classified share-based awards, we recognize stock-based compensation expense based on their fair value at the end of each reporting period. In addition, certain awards are accounted for under ASC Topic 710, Compensation - General, because they do not meet the definition of a stock-based award under ASC Topic 718. Compensation expense is recognized based on the probable outcome of the award at the end of each reporting period. For both equity-classified and liability-classified share-based awards, we estimate forfeitures over the requisite service period when recognizing compensation expense; these estimates are periodically adjusted to the extent to which actual forfeitures differ from such estimates. Refer to Note 10-Stock-Based Compensation for further discussion of the accounting for our stock-based compensation plans. ASSET RETIREMENT OBLIGATIONS Washington Gas accounts for its AROs in accordance with ASC Subtopic 410-20, Asset Retirement and Environmental Obligations—Asset Retirement Obligations. Our AROs include the costs to cut, purge and cap Washington Gas' distribution and transmission system and plug storage wells upon their retirement. We also have AROs associated with our distributed generation assets. These standards require recording the estimated retirement cost over the life of the related asset by depreciating the present value of the retirement obligation, measured at the time of the asset’s acquisition, and accreting the liability until it is settled. There are timing differences between the ARO-related accretion and depreciation amounts being recorded pursuant to GAAP and the recognition of depreciation expense for legal asset removal costs that we are currently recovering in rates. These t |
Regulated Operations
Regulated Operations | 12 Months Ended |
Sep. 30, 2018 | |
Regulated Operations [Abstract] | |
Regulated Operations | REGULATED OPERATIONS Washington Gas accounts for its regulated operations in accordance with ASC Topic 980. This standard includes accounting principles for companies whose rates are determined by independent third-party regulators. When setting rates, regulators may require us to record expense in different periods than may be appropriate for unregulated enterprises. When this occurs, Washington Gas defers the associated costs as assets (regulatory assets) on its balance sheet and records them as expenses on its income statement as it collects the revenues designed to recover these costs through customers’ rates. Further, regulators can also impose liabilities upon a company for gains previously realized or for amounts previously collected from customers for expenses expected to be incurred in the future (regulatory liabilities). When Washington Gas files a request with certain regulatory commissions to modify customers’ rates, it may be permitted to charge customers new rates, subject to refund, until the regulatory commission renders a final decision on the amount of the authorized change in rates. During this interim period, Washington Gas records a provision for a rate refund regulatory liability based on the difference between the amount it collects in rates and the amount it expects to recover from a final regulatory decision. Similarly, Washington Gas periodically records provisions for rate refunds related to other transactions. Actual results for these regulatory contingencies are often difficult to predict and could differ significantly from the estimates reflected in the financial statements. Refer to Note 12— Commitments and Contingencies for further discussion of regulatory matters and related contingencies. At September 30, 2018 and 2017 , we recorded the following regulatory assets and liabilities on our balance sheets. These assets and liabilities will be recognized as revenues or expenses in future periods as they are reflected in customers’ rates. Regulatory Assets and Liabilities (In millions) Regulatory Assets Regulatory Liabilities September 30, 2018 2017 2018 2017 Current: Gas costs due from/to customers (a) $ 4.4 $ 0.2 $ 9.0 $ 10.6 Interruptible sharing (a) — 2.4 1.5 0.7 Revenue normalization mechanisms for Maryland and Virginia (a) — 11.7 3.6 1.4 Accelerated replacement recovery mechanisms 0.6 7.4 1.9 1.1 Rates subject to refund (c) — — — 9.0 Tax Cuts and Jobs Act rate refunds (d) — — 18.1 $ — Total current $ 5.0 $ 21.7 $ 34.1 $ 22.8 Deferred: Accrued asset removal costs $ — $ — $ 270.4 $ 292.2 Deferred gas costs (a)(b) 83.2 90.1 — — Pension and other post-retirement benefits Deferred pension costs—trackers (e) 9.1 19.7 — — ASC Topic 715 unrecognized costs/income (a)(f) Pensions 48.2 119.6 — — Other post-retirement benefits — 0.2 160.3 135.0 Total pension and other post-retirement benefits 57.3 139.5 160.3 135.0 Other: Income tax-related amounts due from/to customers (g) 43.1 37.9 440.6 3.2 Losses/gains on issuance and extinguishments of debt and interest-rate derivative instruments (a)(h) 15.3 16.4 1.3 1.4 Rights-of-way fees (a) — — 1.9 0.7 Business process outsourcing and related costs (a) 6.2 8.2 — — Non-retirement employee benefits (a)(i) 16.5 17.8 — — Deferred distribution integrity management (a)(j) 5.8 7.7 — — Recoverable portion of abandoned LNG facility 2.7 3.1 — — Environmental response costs (a)(k) 5.0 2.5 — — Energy efficiency program-Maryland 4.5 5.3 — — Other regulatory expenses 5.5 5.7 1.4 4.1 Total other $ 104.6 $ 104.6 $ 445.2 $ 9.4 Total deferred $ 245.1 $ 334.2 $ 875.9 $ 436.6 Total $ 250.1 $ 355.9 $ 910.0 $ 459.4 (a)Washington Gas does not earn its overall rate of return on these assets. Washington Gas is allowed to recover and required to pay, using short-term interest rates, the carrying costs related to billed gas costs due from and to its customers in the District of Columbia and Virginia jurisdictions. (b)Includes fair value of derivatives, which are not included in customer bills until settled. (c)Represents provision established for refunds to customers when the substitution of final rates resulted in an amount greater than the amount collected during the interim period related to the 2016 Virginia Rate Case. (d)Represents amounts accrued for future refunds due to the Tax Cuts and Jobs Act of 2017. For a further discussion, see Rates and Regulatory Matters section of Management's Discussion Analysis and Note 8-Income Taxes in the Notes to Consolidated Financial Statements. (e)Relates to the District of Columbia jurisdiction. (f)Refer to Note 9-Pension and Other Post-Retirement Benefit Plans for a further discussion of these amounts. (g) This balance represents amounts due from customers for deferred tax liabilities related to tax benefits on deduction flowed directly to customers prior to the adoption of income tax normalization for ratemaking purposes and to tax rate changes including the latest reduction as a result of the Tax Act. (h)The losses or gains on the issuance and extinguishment of debt and interest-rate derivative instruments include unamortized balances from transactions executed in prior fiscal years. These transactions create gains and losses that are amortized over the remaining life of the debt as prescribed by regulatory accounting requirements. (i)Represents the timing difference between the recognition of workers compensation and short-term disability costs in accordance with generally accepted accounting principles and the way these costs are recovered through rates. (j)This balance represents amounts for deferred expenditures associated with Washington Gas’ Distribution Integrity Management Program (DIMP) in Virginia. (k)This balance represents allowed environmental remediation expenditures at Washington Gas sites to be recovered through rates for Maryland and the District of Columbia. The recovery period is over several years. As required by ASC Topic 980, Washington Gas monitors its regulatory and competitive environment to determine whether the recovery of its regulatory assets remains probable. If Washington Gas were to determine that recovery of these assets is no longer probable, it would write off the assets against earnings. We have determined that ASC Topic 980 continues to apply to our regulated operations, and the recovery of our regulatory assets at September 30, 2018 is probable. |
Accounts Payable and Other Accr
Accounts Payable and Other Accrued Liabilities | 12 Months Ended |
Sep. 30, 2018 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Accounts Payable and Other Accrued Liabilities | ACCOUNTS PAYABLE AND OTHER ACCRUED LIABILITIES The tables below provide details for the amounts included in “Accounts payable and other accrued liabilities” on the balance sheets for both WGL and Washington Gas. WGL Holdings, Inc. September 30, (In millions) 2018 2017 Accounts payable—trade $ 420.0 $ 361.6 Employee benefits and payroll accruals 34.2 35.0 Other accrued liabilities 64.6 27.2 Total $ 518.8 $ 423.8 Washington Gas Light Company September 30, (In millions) 2018 2017 Accounts payable—trade $ 187.0 $ 174.9 Employee benefits and payroll accruals 32.9 32.4 Other accrued liabilities 51.4 12.5 Total $ 271.3 $ 219.8 |
Short-Term Debt
Short-Term Debt | 12 Months Ended |
Sep. 30, 2018 | |
Short-term Debt [Abstract] | |
Short-Term Debt | SHORT-TERM DEBT WGL and Washington Gas satisfy their short-term financing requirements through the sale of commercial paper, financing arrangements with third-party lenders, or through bank borrowings. Due to the seasonal nature of the regulated utility and retail energy-marketing segments, short-term financing requirements can vary significantly during the year. Revolving credit agreements are maintained to support outstanding commercial paper and to permit short-term borrowing flexibility. The policy of each WGL and Washington Gas is to maintain bank credit facilities in amounts equal to or greater than the expected maximum commercial paper position. The following is a summary of committed credit available at September 30, 2018 and 2017 . Committed Credit Available (In millions) September 30, 2018 WGL (b) Washington Gas Total Consolidated Committed credit agreements Unsecured revolving credit facility, expires December 19, 2019 (a) $ 650.0 $ 350.0 $ 1,000.0 Less: Commercial Paper (492.5 ) (95.0 ) (587.5 ) Net committed credit available $ 157.5 $ 255.0 $ 412.5 Weighted average interest rate 2.61 % 2.42 % 2.58 % September 30, 2017 Committed credit agreements Unsecured revolving credit facility, expires December 19, 2019 (a) $ 650.0 $ 350.0 $ 1,000.0 Less: Commercial Paper (382.0 ) (123.0 ) (505.0 ) Net committed credit available $ 268.0 $ 227.0 $ 495.0 Weighted average interest rate 1.52 % 1.22 % 1.45 % (a) Washington Gas has the right to request extensions with the banks’ approval. Washington Gas’ revolving credit facility permits it to borrow an additional $100 million , with the banks’ approval, for a total of $450 million . (b) WGL includes WGL Holdings and all subsidiaries other than Washington Gas. At September 30, 2018 and 2017 , there were no outstanding bank loans from WGL’s or Washington Gas’ revolving credit facilities. Under the terms of the credit agreements, the ratio of consolidated financial indebtedness to consolidated total capitalization may not exceed 0.65 to 1.0 ( 65.0% ). At September 30, 2018 , WGL's and Washington Gas' ratios of consolidated financial indebtedness to consolidated total capitalization were 59% and 47% , respectively. In addition, WGL and Washington Gas are required to inform lenders of changes in corporate existence, financial conditions, litigation and environmental warranties that might have a material adverse effect. Failure to inform the lenders’ agent of these material changes might constitute default under the agreements. Another potential default may be deemed to exist if WGL or Washington Gas were to fail to pay principal or interest when due on any other indebtedness. Such defaults, if not remedied, could lead to suspension of further loans and/or acceleration in which obligations become immediately due and payable. At September 30, 2018 , WGL and Washington Gas were in compliance with all of the covenants under their revolving credit facilities. PROJECT FINANCING Washington Gas previously obtained third-party project financing on behalf of the federal government to provide funds during the construction of certain energy management services projects entered into under Washington Gas' area-wide contract. In connection with work completed under the area-wide contract, the construction work is performed by WGL Energy Systems on behalf of Washington Gas and an inter-company payable is recorded for work provided by WGL Energy Systems. As work is performed, Washington Gas establishes a receivable representing the government's obligation to remit principal and interest. The payable and receivable are equal to each other at the end of the construction period, but there may be timing differences in the recognition of the project related payable and receivable during the construction period. When these projects are formally “accepted” by the government and deemed complete, Washington Gas assigns the ownership of the receivable to the third-party lender in satisfaction of the obligation and removes both the receivable and the obligation related to the financing from its financial statements. If project acceptance does not occur by a specified date as stated in the financing agreement, the lender may require Washington Gas to make interim interest payments or repurchase the contract payments plus a termination fee. In March 2016, the SCC of VA denied Washington Gas' further participation in the third-party financing arrangement but allowed existing debt arrangements to remain intact until the related obligations were satisfied. At September 30, 2018, there were two contracts remaining that had not yet been novated to WGL Energy Systems. The draws related to these two projects totaling $68.5 million are recorded on the Washington Gas balance sheet as a short-term obligation to third-party lenders in "Notes payable and project financing". In December 2016, WGL Energy Systems entered into an agreement to obtain third-party financing and receive funds directly from the third-party lender during the construction period associated with the related energy management service projects. As a result, Washington Gas will no longer be liable under future third-party financing arrangements, for projects entered into under the area-wide contract. The general terms of the financing agreement are the same as the prior financing arrangements between Washington Gas and the third-party lender mentioned above. Washington Gas will continue to record a receivable representing the government’s obligation and will record an inter-company payable to WGL Energy Systems for the construction work performed for the same amount. At September 30, 2018 , there were three contracts that are outstanding totaling $13.7 million on the WGL Energy Systems balance sheet as a short-term obligation to third-party lenders in "Notes payable and project financing". As of September 30, 2018 , WGL recorded $77.0 million in "Unbilled revenues" on the balance sheet, and WGL and Washington Gas recorded $ 82.2 million and $ 68.5 million , respectively, in a corresponding short-term obligation to the lender in "Notes payable and project financing", for energy management services projects that were not complete. At September 30, 2017, WGL recorded $ 85.6 million in "Unbilled revenues" on the balance sheet and WGL and Washington Gas recorded $ 54.8 million and $ 43.8 million , respectively, in a corresponding short-term obligation to third-party lenders in "Notes payable and project financing" for energy management services projects that were not complete. For projects which WGL Energy Systems is the primary contractor and where these projects are financed for government agencies that have minimal credit risk, and with which we have previous collection experience, neither WGL nor Washington Gas recorded a corresponding reserve for bad debts related to these receivables at September 30, 2018 or September 30, 2017. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | LONG-TERM DEBT FIRST MORTGAGE BONDS The Mortgage of Washington Gas dated January 1, 1933 (Mortgage), as supplemented and amended, securing any First Mortgage Bonds (FMBs) it issues, constitutes a direct lien on substantially all property and franchises owned by Washington Gas, other than a small amount of property that is expressly excluded. At September 30, 2018 and 2017 , Washington Gas had no debt outstanding under the Mortgage. Any FMBs that may be issued in the future will represent indebtedness of Washington Gas. SHELF REGISTRATION At September 30, 2018, WGL had capacity under a shelf registration to issue an unspecified amount of long-term debt securities and Washington Gas had capacity under a shelf registration statement that was filed in May 2018 to issue up to $ 725.0 million of additional medium-term notes (MTN's). UNSECURED NOTES WGL and Washington Gas issue long-term notes in the form of MTNs, unsecured long-term notes and private placement notes with individual terms regarding interest rates, maturities and call or put options. These notes can have maturity dates of one or more years from the date of issuance. The following tables show the outstanding notes as of September 30, 2018 and 2017 . Long-Term Debt Outstanding ($ In millions) WGL (a) Washington Gas Total Consolidated September 30, 2018 Long-term debt (b) $ 850.0 $ 1,146.0 $ 1,996.0 Unamortized discount (1.4 ) (2.9 ) (4.3 ) Unamortized debt expenses (3.7 ) (8.1 ) (11.8 ) Total Long-Term Debt $ 844.9 $ 1,135.0 $ 1,979.9 Weighted average interest rate 3.06 % 4.89 % 4.11 % September 30, 2017 Long-term debt (b) $ 550.0 $ 1,146.0 $ 1,696.0 Unamortized discount (1.5 ) (3.0 ) (4.5 ) Unamortized debt expenses (2.1 ) (8.5 ) (10.6 ) Total Long-Term Debt $ 546.4 $ 1,134.5 $ 1,680.9 Weighted average interest rate 2.81 % 4.89 % 4.21 % (a) WGL includes WGL Holdings and all subsidiaries other than Washington Gas. (b) Includes Senior Notes and term loans for WGL and both MTNs and private placement notes for Washington Gas. Represents face value including current maturities. The indenture for the unsecured MTNs and the note purchase agreement for the private placement notes provide that Washington Gas will not issue any FMBs under its Mortgage without securing all MTNs and the private placement notes with the Mortgage. Certain of Washington Gas’ outstanding MTNs and private placement notes have a make-whole call feature that pays the holder a premium based on a spread over the yield to maturity of a U.S. Treasury security having a comparable maturity if that particular note were to be called by Washington Gas before its stated maturity date. With the exception of this make-whole call feature, Washington Gas is not required to pay call premiums for calling debt prior to the stated maturity date. The following tables show long-term debt issuances and retirements for the years ended September 30, 2018 and 2017 . Long-Term Debt Issuances and Retirements ($ In millions) Principal (b) Interest Rate (f) Effective Cost( f) Nominal Maturity Date Year Ended September 30, 2018 WGL (a) Issuances: 11/29/2017 $ 300.0 1.88 % (c) 2.01 % 11/29/2019 3/14/2018 $ 250.0 2.66 % (d) 2.79 % 03/12/2020 Total consolidated issuances $ 550.0 WGL (a) Retirements: 02/18/2018 $ 250.0 1.24 % 1.24 % 2/18/2018 Total $ 250.0 Year Ended September 30, 2017 WGL (a) Issuances: 1/26/2017 $ 50.0 1.57 % (e) 1/26/2019 Total $ 50.0 Washington Gas Issuances: 9/18/2017 $ 200.0 3.80 % 9/15/2046 Total 200.0 Total consolidated issuances $ 250.0 (a) WGL includes WGL Holdings and all subsidiaries other than Washington Gas. (b) Represents face amount of notes. (c) Floating rate per annum and reset quarterly based on terms set forth in the prospectus supplement filed by WGL pursuant to Securities Act Rule 424 on November 27, 2017. (d) Floating rate per annum and reset quarterly based on terms set forth in the prospectus supplement filed by WGL pursuant to Securities Act Rule 424 on March 13, 2018. (e) Floating rate per annum that will be determined from time to time based on parameters set forth in the credit agreement. (f) Represents the interest rate and effective cost at the trade date of the debt. LONG-TERM DEBT MATURITIES Maturities of long-term debt for each of the next five fiscal years and thereafter as of September 30, 2018 are summarized in the following table. Long-Term Debt Maturities (a) (In millions) WGL (b) Washington Gas Total 2019 $ 50.0 $ 50.0 $ 100.0 2020 650.0 50.0 700.0 2023 — 20.0 20.0 Thereafter 150.0 1,026.0 1,176.0 Total $ 850.0 $ 1,146.0 $ 1,996.0 Less: current maturities 50.0 50.0 100.0 Total non-current $ 800.0 $ 1,096.0 $ 1,896.0 (a) Excludes unamortized discounts and debt issuance costs of $ 5.1 million and $11.0 million at September 30, 2018 , for WGL and Washington Gas, respectively. (b) WGL includes WGL Holdings and all subsidiaries other than Washington Gas. |
Common Stock
Common Stock | 12 Months Ended |
Sep. 30, 2018 | |
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |
Common Stock | COMMON STOCK — WGL COMMON STOCK OUTSTANDING Upon consummation of the Merger, each share of WGL common stock issued and outstanding immediately prior to the closing was converted automatically into the right to receive $88.25 (Merger Consideration) in cash per share, without interest, less any applicable withholding taxes, and ceased to be outstanding. Shares of WGL common stock held by WGL, AltaGas, the Merger Sub or any subsidiaries were not entitled to receive the Merger Consideration. Each share of the Merger Sub's issued and outstanding common stock at the time of the consummation of the Merger was converted into one share of WGL common stock for a total of 100 WGL post-Merger shares owned by Wrangler 1 LLC, an indirect wholly owned subsidiary of AltaGas (Wrangler 1). As a result of the Merger, WGL's common stock was delisted from the New York Stock Exchange. |
Preferred Stock
Preferred Stock | 12 Months Ended |
Sep. 30, 2018 | |
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |
Preferred Stock | PREFERRED STOCK Washington Gas has three series of cumulative preferred stock outstanding, and each series is subject to redemption by Washington Gas. All three series have a dividend preference that prohibits Washington Gas from declaring and paying dividends on shares of its common stock unless dividends on all outstanding shares of the preferred stock have been fully paid for all past quarterly dividend periods. In addition, all outstanding shares of preferred stock have a preference as to the amounts that would be distributed in the event of a liquidation or dissolution of Washington Gas. The following table presents this information, as well as call prices for each preferred stock series outstanding. Preferred Stock Preferred Liquidation Preference Series Shares Per Share Call Price Outstanding Outstanding Involuntary Voluntary Per Share $4.80 150,000 $100 $101 $101 $4.25 70,600 $100 $105 $105 $5.00 60,000 $100 $102 $102 |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Through July 6th and prior to the Merger with AltaGas, WGL and its wholly owned subsidiaries filed a consolidated federal income tax return and various state income tax returns where they had a business presence. We are no longer subject to income tax examinations by the Internal Revenue Service (IRS) for years ended prior to September 30, 2013. Substantially all state income tax years in major jurisdictions are closed for years ended prior to September 30, 2013. Through July 6, 2018, WGL and each of its subsidiaries participated in a tax sharing agreement that establishes the method for allocating tax benefits from losses that are utilized on the consolidated income tax return. The consolidated tax is apportioned among the subsidiaries on the separate return method and losses are allocated to the subsidiaries that have taxable income pro-rata basis. In fiscal year 2018, Washington Gas received $ 2.9 million from subsidiaries with taxable income for the utilization of Washington Gas' net operating loss pursuant to the tax sharing agreement. Effective with the Merger and beginning July 7, 2018, our tax year end will change to December 31, 2018, and WGL and its subsidiaries will be included with AltaGas’ wholly owned US subsidiaries’ consolidated income tax return with AltaGas Services (U.S.) (ASUS) being the parent company of the consolidated group. Accordingly, WGL and its subsidiaries will file a final consolidated income tax return for the short tax year from October 1, 2017 to July 6, 2018. We and our wholly owned subsidiaries will be included in the AltaGas consolidated income tax returns beginning with the period from July 7, 2018 to December 31, 2018. We have established a new tax sharing policy with ASUS. The tax sharing policy provides allocation of consolidated tax liabilities and benefits based on amounts participants would incur as standalone corporations. Income taxes recorded for the period October 1, 2017 through July 6, 2018 are based on amounts we and our subsidiaries would incur as standalone corporations. State income tax returns are filed on a separate company basis in most states where we have operations and/or a requirement to file. In July 2018, we filed our tax return for the year ended September 30, 2017. US Federal Income Tax Reform On December 22, 2017, President Trump signed the Tax Cuts and Jobs Act (TCJA) (the Tax Act) into law. The Tax Act substantially reforms the Internal Revenue Code, including, but not limited to, (1) reducing the U.S. federal corporate tax rate from 35% to 21%; (2) creating a limitation on deductible interest expense equal to 30% of adjusted taxable income (not applicable to regulated utilities); (3) allowing 100% expensing for the cost of qualified property (generally not applicable to regulated utilities); (4) eliminating the domestic production activities deduction (not applicable to the consolidated tax group); (5) eliminating the corporate alternative minimum tax and changing how existing alternative minimum tax credits can be realized (not applicable to the consolidated tax group) in taxable years beginning after December 31, 2017 ; and (6) changing rules related to uses and limitations of net operating loss carry-forwards created in tax years beginning after December 31, 2017. ASC Topic 740 requires companies to recognize the impacts of a change in tax law or tax rates in the period of enactment. The most significant change that impacts the Registrants’ financial statements is the reduction of the corporate federal income tax rate from 35% to 21% beginning January 1, 2018. The Tax Act also made bonus depreciation ineligible for regulated public utilities. The IRS issued proposed transition rules for property acquired and placed into service after September 27, 2017. The TCJA repeals 50% bonus depreciation for all taxpayers and provides 100% expensing for assets for non-utility companies both acquired and placed-in-service after September 27, 2017. On August 8, 2018, the IRS issued proposed regulations allowing regulated utility companies to claim bonus depreciation for assets placed in service for the first year of implementation of The Act. For regulated utility companies, projects that were greater than 10% complete at September 27, 2017, are eligible for 50% bonus depreciation when placed into service. We have recorded a provisional amount pursuant to the transition rule and the proposed depreciation regulation as of September 30, 2018. Upon enactment of the Tax Act on December 22, 2017, the SEC Staff issued Staff Accounting Bulletin No. 118 (SAB 118) to address the application of GAAP when a registrant does not have the necessary information available, prepared, or analyzed in reasonable detail to complete the necessary accounting. We have assessed the majority of the applicable provisions in the TCJA and have recorded the associated provisional impacts as of September 30, 2018 and have followed the guidance issued in SAB 118. SAB 118 allows entities to take a reasonable period of time to measure and recognize the effects of the Tax Act, while requiring disclosures during that period. Registrants disclose the items for which the accounting is complete. A provisional amount is recorded for items for which the company is able to make reasonable estimates. The recorded provisional amounts remain subject to adjustment within the measurement period. The measurement period begins in the reporting period that includes the Tax Act’s enactment date and continues one year from the date of enactment. To the extent a company cannot reasonably estimate the effects of the Tax Act, it applies the provisions of the tax law that were in effect immediately prior to enactment. SAB 118 requires disclosure of any measurement period adjustments, both provisional and final, and the effect of measurement period adjustments on the effective tax rate. Items for which the accounting is substantially complete by September 30, 2018, however may be subject to adjustment pursuant to Technical Corrections of The Act: Bonus depreciation: Under the Tax Act, regulated public utility property is ineligible for bonus depreciation and is depreciated under MACRS while non-utility property is eligible for 100% bonus depreciation. In accordance with the August 8, 2018 proposed depreciation regulations and the transitional rule above, a provisional amount of $ 86 million of additional depreciation deduction for the short period ended July 6, 2018 has been recorded in fiscal year 2018. The company considered all properties placed in service after the Merger as MACRS eligible. Decrease in regulated revenues: In January 2018, Washington Gas filed applications for approval to reduce the distribution rates it charges customers in Maryland, Virginia and the District of Columbia to reflect the impact of the Tax Act. These applications proposed to reduce rates in these jurisdictions by a combined amount of $ 41.2 million annually, until base rates are reestablished in a general rate case. As described further below, the portion of this reduction in regulated revenues represented by the re-measurement of deferred tax assets and liabilities was recorded as a net regulatory liability under ASC 980, Regulated Operations. The net regulatory liability recorded is the amount we consider probable of regulatory treatment and will be refunded to customers in future periods. In addition, a portion of this reduction in regulated revenues relates to the federal tax expense included in current base rates that needs to be adjusted to the new federal rate of 21% effective January 1, 2018. Through the year ended September 30, 2018, revenues have been lowered by $ 27.5 million to reflect the regulatory impact of the Tax Act. Uncertain tax position: The re-measurement of WGL’s uncertain tax position related to temporary differences was a decrease in the amount of $ 14.8 million . Generally, a reserve for uncertain tax benefits related to prior years would generally not be re-measured if the tax exposure related to prior years where the federal income tax rate was 35%. However, WGL’s reserve for uncertain tax benefits relates solely to repair deductions for which the tax consequence of any disallowed deductions related to these temporary differences is expected to be prospective only. All provisional amounts recorded for re-measurement remain subject to adjustment within the measurement period pending the preparation and analysis of additional information. Items for which the accounting is not yet complete as of September 30, 2018 but for which we have recorded provisional amounts which are subject to adjustment during the measurement period: Re-measurement of deferred tax assets and liabilities: Under ASC 740, the tax rate used to measure deferred tax liabilities and deferred tax assets are the tax rates for the years the liability is expected to be settled or the asset recovered. We re-measured the deferred tax balances at September 30, 2017. The re-measurement of our deferred tax assets and liabilities includes an initial estimated impact on our cumulative prior year net operating loss deferred tax asset (NOL DTA), investment tax credit and related attributes and deferred taxes associated with our benefit plans. For the period ended July 6, 2018, the Company had taxable income, but had sufficient NOL DTA to apply against that amount. For the twelve months ended September 30, the Company had cumulative taxable losses, and as a result, the Company has recorded its consolidated deferred tax liabilities at a federal rate of 21%. In addition, we have recorded a provisional estimate but have not fully completed the accounting for the tax sharing impacts of the re-measurement of the deferred tax assets and deferred tax liabilities. The effect of the re-measurement at a federal tax rate of 21% resulted in a net decrease in consolidated deferred tax liabilities in the amount of $ 458.7 million , including net tax gross-up. Of this amount, $ 422.9 million is attributable to the regulated utility and $ 35.8 million is attributable to non-utility operations. Of the amount related to utility operations, the net decrease in plant-related deferred tax liabilities was $ 319.2 million before tax gross-up, increasing the regulatory liability. The re-measurement of deferred tax liabilities not associated with rate-making including all re-measurement of deferred tax liabilities for non-utility subsidiaries are recorded as a reduction to income tax expense of $ 28.7 million . Under ASC 980, we recorded a regulatory liability for excess deferred income taxes of $ 431.0 million including tax gross-up. We recorded a decrease in the regulatory asset for flow-through depreciation related items in an amount of $ 22.4 million , including tax gross-up; and an increase in the regulatory asset for the re-measurement of non-plant excess deferred taxes (including the net operating loss carryforward deferred tax asset) in an amount of $ 28.3 million , including tax gross-up, for a net increase in regulatory assets of $ 5.9 million . Accounting for the tax basis adjustment for ITC: Under prior tax law and under the Tax Act, the tax basis of property must be reduced by one-half of the investment tax credits claimed thereon. Under GAAP, we adjust the book basis and amortize the investment tax credits over the book life of the associated assets. We have recorded certain provisional amounts that account for the effects on the adjustment of book basis. Accounting for the NOL DTA associated with the prior year return to provision true-up adjustments. Following the filing of our 2017 Federal tax return, we booked certain adjustments in the fourth quarter of 2018 to adjust our estimated taxes to the amounts included in the return. We did adjust the associated impacts of temporary differences on our deferred income tax balances resulting from these return to provision adjustments, but have not fully analyzed the impacts to the associated NOL DTA and tax sharing. Components of Income Tax Expense or Benefit The following tables provide the components of income tax expenses for WGL and Washington Gas for the years ended September 30, 2018, 2017 and 2016. WGL Holdings, Inc. Components of Income Tax Expense (Benefit) Years Ended September 30, (In thousands) 2018 2017 2016 INCOME TAX EXPENSE Current: Federal $ (1,684 ) $ 430 $ (57,690 ) State 649 3,267 (1,983 ) Total current (1,035 ) 3,697 (59,673 ) Deferred: Federal Accelerated depreciation (28,498 ) 83,637 93,175 Other (32,490 ) 13,042 49,638 State Accelerated depreciation 12,399 15,097 12,993 Other 3,570 3,190 8,073 Total deferred (a) (45,019 ) 114,966 163,879 Amortization of investment tax credits (7,398 ) (7,504 ) (6,132 ) Total income tax expense (benefit) $ (53,452 ) $ 111,159 $ 98,074 (a) Includes a net benefit of $ 28.7 million related to remeasurement of deferred income taxes. Washington Gas Light Company Components of Income Tax Expense (Benefit) Years Ended September 30, (In thousands) 2018 2017 2016 INCOME TAX EXPENSE Current: Federal $ — $ 1,722 $ (48,064 ) State 1,274 1,283 (2,957 ) Total current 1,274 3,005 (51,021 ) Deferred: Federal Accelerated depreciation (27,846 ) 83,009 93,385 Other (8,485 ) (18,419 ) 13,826 State Accelerated depreciation 12,533 15,033 13,081 Other (2,637 ) (2,037 ) 3,190 Total deferred (a) (26,435 ) 77,586 123,482 Amortization of investment tax credits (702 ) (751 ) (795 ) Total income tax expense $ (25,863 ) $ 79,840 $ 71,666 (a) Includes tax expense of $ 7.0 million related to remeasurement of deferred income taxes. Rate Reconciliation The effective income tax rate from continuing operations varies from the U.S. Federal statutory rate principally due to the following: WGL Holdings, Inc. Reconciliation Between the Statutory Federal Income Tax Rate and Effective Tax Rate Years Ended September 30, ($ In thousands) 2018 2017 2016 Income taxes at statutory federal income tax rate (a) $ (6,784 ) 21.00 % $ 101,157 35.00 % $ 93,253 35.00 % Increase (decrease) in income taxes resulting from: Accelerated depreciation less amount deferred 1,079 (3.34 ) 2,213 0.77 2,445 0.92 Allowance for funds used during construction (1,891 ) 5.85 (1,625 ) (0.56 ) (1,537 ) (0.58 ) Amortization of investment tax credits (7,398 ) 22.90 (7,504 ) (2.60 ) (6,132 ) (2.30 ) Amortization of excess deferred taxes (9,889 ) 30.61 (201 ) (0.07 ) — — Cost of removal (1,561 ) 4.83 (2,944 ) (1.02 ) (3,722 ) (1.40 ) State income taxes-net of federal benefit 3,976 (12.31 ) 13,472 4.66 12,969 4.87 Release of valuation allowance (2,188 ) 6.77 — — — — Merger related costs 2,044 (6.33 ) 2,292 0.79 — — Non-controlling interest 6,199 (19.19 ) 5,627 1.95 — — Re-measurement (28,743 ) 88.97 — — — — ASU 2016-09 adoption (3,521 ) 10.90 — — — — Return to provision adjustment (6,279 ) 19.44 (3,062 ) (1.06 ) (1,012 ) (0.38 ) Other items-net 1,504 (4.66 ) 1,734 0.60 1,810 0.68 Total income tax expense (benefit) and effective tax rate $ (53,452 ) 165.44 % $ 111,159 38.46 % $ 98,074 36.81 % (a) As a result of the merger with AltaGas, the Company is subject to two separate short periods and accompanying returns. The first period through July 6, 2018 is subjected to a higher, blended federal statutory rate. Due to the net operating loss for federal tax purposes through September 30, 2018, all current year activity is ultimately taxed at 21%. As such, for presentational purposes, we applied a 21% rate to the entire fiscal year activity. Washington Gas Light Company Reconciliation Between the Statutory Federal Income Tax Rate and Effective Tax Rate Years Ended September 30, ($ In thousands) 2018 2017 2016 Income taxes at statutory federal income tax rate (a) $ (11,026 ) 21.00 % $ 74,071 35.00 % $ 64,673 35.00 % Increase (decrease) in income taxes resulting from: Accelerated depreciation less amount deferred 1,079 (2.06 ) 2,213 1.05 2,445 1.32 Allowance for funds used during construction (70 ) 0.13 (291 ) (0.14 ) (509 ) (0.28 ) Amortization of investment tax credits (703 ) 1.34 (751 ) (0.35 ) (795 ) (0.43 ) Amortization of excess deferred taxes (9,798 ) 18.66 (196 ) (0.09 ) — — Cost of removal (1,561 ) 2.97 (2,944 ) (1.39 ) (3,722 ) (2.01 ) State income taxes-net of federal benefit (2,659 ) 5.06 9,482 4.48 8,310 4.50 Consolidated tax sharing allocation — — — — 1,073 0.58 Re-measurement 7,031 (13.39 ) — — — — ASU 2016-09 adoption (3,223 ) 6.14 — — — — Return to provision adjustment (4,669 ) 8.89 (4,859 ) (2.30 ) (1,353 ) (0.73 ) Other items-net (264 ) 0.50 3,115 1.47 1,544 0.84 Total income tax expense (benefit) and effective tax rate $ (25,863 ) 49.24 % $ 79,840 37.73 % $ 71,666 38.79 % (a) As a result of the merger with AltaGas, the Company is subject to two separate short periods and accompanying returns. The first period through July 6, 2018 is subjected to a higher, blended federal statutory rate. Due to the net operating loss for federal tax purposes through September 30, 2018, all current year activity is ultimately taxed at 21%. As such, for presentational purposes, we applied a 21% rate to the entire fiscal year activity. Components of accumulated deferred income tax assets and liabilities The following tables provide the components of accumulated deferred income tax assets (liabilities) for WGL and Washington Gas at September 30, 2018 and 2017. WGL Holdings, Inc. Components of Accumulated Deferred Income Tax Assets (Liabilities) (In thousands) 2018 2017 Deferred income tax assets: Pensions $ 43,553 $ 42,593 Uncollectible accounts 3,714 10,617 Inventory overheads 4,090 6,617 Employee compensation and benefits 52,526 45,202 Income taxes recoverable through future rates 121,145 — Derivatives 10,787 13,802 Deferred gas costs — 1,485 Solar grant/investment tax credit 58,514 61,773 Tax credit carry forward 158,167 160,077 Net operating loss 114,625 30,278 Other (a) 5,346 2,693 Total assets 572,467 375,137 Deferred income tax liabilities: Other post-retirement benefits 106,700 90,031 Accelerated depreciation and other plant related items 756,022 1,068,951 Losses/gains on reacquired debt 581 1,047 Income taxes recoverable through future rates — 33,502 Deferred gas costs 3,041 — Partnership basis differences 41,459 46,968 Valuation allowances — 2,188 Total liabilities 907,803 1,242,687 Net accumulated deferred income tax assets (liabilities) $ (335,336 ) $ (867,550 ) (a) For the fiscal years ended September 30, 2018 and 2017, amount includes $ 1.0 million and $ 0.5 million , respectively, in deferred income tax assets reported in "Deferred charges and other assets" on the consolidated balance sheet. Washington Gas Light Company Components of Accumulated Deferred Income Tax Assets (Liabilities) (In thousands) 2018 2017 Deferred income tax assets: Pensions $ 43,071 $ 41,907 Uncollectible accounts 1,131 7,815 Inventory overheads 4,090 6,617 Employee compensation and benefits 51,006 47,479 Derivatives 7,435 11,187 Income taxes recoverable through future rates 121,357 — Deferred gas costs — 1,485 Net operating loss 90,943 — Total assets 319,033 116,490 Deferred income tax liabilities: Other post-retirement benefits 106,289 89,494 Accelerated depreciation and other plant related items 615,499 876,235 Losses/gains on reacquired debt 581 1,047 Income taxes recoverable through future rates — 33,324 Deferred gas costs 3,041 — Other 3,430 4,775 Total liabilities 728,840 1,004,875 Net accumulated deferred income tax assets (liabilities) $ (409,807 ) $ (888,385 ) The Company’s net operating losses generated through July 6, 2018 have expiration dates beginning in 2036. The Company’s investment tax credit carry forwards expire over various years beginning 2032. Tabular Reconciliation of Unrecognized Tax Benefits The following table summarizes the change in unrecognized tax benefits during fiscal year 2018, 2017, 2016 and our total unrecognized tax benefits at September 30, under the provisions of ASC Topic 740, Income Taxes: Unrecognized Tax Benefits (In thousands) 2018 2017 2016 Total unrecognized tax benefits, October 1, $ 48,009 $ 42,283 $ 38,627 Increases in tax positions relating to current year 10,947 10,766 10,645 Decreases in tax positions relating to prior year (15,389 ) (5,040 ) (6,989 ) Total unrecognized tax benefits, September 30, $ 43,567 $ 48,009 $ 42,283 During the year, the unrecognized tax benefits for WGL and Washington Gas decreased by approximately $ 4.4 million relating to uncertain tax positions, primarily due to the change in tax accounting for repairs. If the amounts of unrecognized tax benefits are eventually realized, it would not materially impact the effective tax rate. It is reasonably possible that the amount of the unrecognized tax benefit with respect to some of WGL’s and Washington Gas’ uncertain tax positions will significantly increase or decrease in the next 12 months, if the IRS were to finalize and issue its proposed revenue procedure for gas distribution repair deductions. Amounts of Interest and Penalties Recognized WGL and Washington Gas recognize any accrued interest associated with uncertain tax positions in interest expense and recognizes any accrued penalties associated with uncertain tax positions in other expenses in the statements of income. During the fiscal year ended September 30, 2018, 2017, and 2016, there was no accrued interest expense associated with uncertain tax positions. |
Pension and Other Post-Retireme
Pension and Other Post-Retirement Benefit Plans | 12 Months Ended |
Sep. 30, 2018 | |
Retirement Benefits [Abstract] | |
Pension and Other Post-Retirement Benefit Plans | PENSION AND OTHER POST-RETIREMENT BENEFIT PLAN S Washington Gas maintains a qualified, trusteed, non-contributory defined benefit pension plan (qualified pension plan) covering most active and vested former employees of Washington Gas and certain employees of WGL subsidiaries. The non-contributory defined benefit pension plan is closed to all employees hired on or after January 1, 2010 and instead employees are eligible to receive supplemental contributions to their defined-contribution savings plan. Several executive officers of Washington Gas also participate in a defined benefit supplemental executive retirement plan (DB SERP), a non-qualified pension plan. The DB SERP was closed to new entrants beginning January 1, 2010 and instead, executive officers are eligible to participate in a defined contribution SERP (DC SERP). In addition, effective January 1, 2010, Washington Gas established a non-funded defined benefit restoration plan (DB restoration) for the purpose of providing supplemental pension and pension-related benefits to a select group of management employees. There are rabbi trusts associated with the DB SERP and DB restoration plans that were funded pursuant to the Merger Agreement. The rabbi trusts can be used to make payments to the participants or the payments can be made from operating funds. As of September 30, 2018 , the rabbi trust balance associated with these two plans was $60.5 million . $20.2 million was recorded in “Current Assets-Other” and $40.3 million was recorded in “Deferred Charges and Other Assets - Other”, along with other rabbi trust balances. Washington Gas accounts for the qualified pension plan, DB SERP and DB restoration plans under the provisions of ASC Topic 715, Compensation-Retirement Benefits. WGL subsidiaries offer defined-contribution savings plans to all eligible employees. These plans allow participants to defer on a pre-tax or after-tax basis, a portion of their salaries for investment in various alternatives. We make matching contributions to the amounts contributed by employees in accordance with the specific plan provisions. Total matching contributions to our savings plans were $5.6 million , $5.1 million and $5.1 million during fiscal years ended September 30, 2018 , 2017 and 2016 , respectively. All employees not earning benefits in the qualified pension plan receive an employer provided supplemental contribution ranging from 4% to 6% depending on years of service. Total supplemental contributions to the plan were $3.4 million , $2.9 million and $2.6 million during fiscal years ended September 30, 2018 , 2017 and 2016 , respectively. Washington Gas provides certain healthcare and life insurance benefits for retired employees of Washington Gas and certain employees of WGL subsidiaries. Substantially all employees of Washington Gas may become eligible for such benefits if they attain retirement status while working for Washington Gas. For eligible retirees and dependents not yet receiving Medicare benefits, Washington Gas provides medical, prescription drug and dental benefits through Preferred Provider Organization (PPO) or Health Maintenance Organization (HMO) plans, through the Washington Gas Light Company Retiree Medical Plan (Retiree Medical Plan). For Medicare-eligible retirees age 65 and older , eligible retirees and dependents participate in a special tax-free HRA plan effective January 1, 2015. Participating retirees and dependents receive an annual subsidy to help purchase supplemental medical, prescription drug and dental coverage in the marketplace. As part of the new HRA plan, participants who enroll in a Medicare Part D prescription drug plan and meet the threshold for Medicare catastrophic prescription drug coverage will be eligible for an additional reimbursement of their out-of-pocket prescription drug costs in excess of the threshold. Washington Gas accounts for healthcare and life insurance benefits under the provisions of ASC Topic 715. On September 25, 2015, the Retiree Medical Plan was amended to limit the aggregate cost of applicable employer-sponsored coverage, thereby avoiding the 40% excise tax enacted by the Patient Protection and Affordable Care Act of 2010. The resolution, which was effective September 30, 2015 applies to plan years beginning on or after January 1, 2018, and includes a limit of $11,850 per participant, with a maximum limit of $30,950 for family coverage. This amendment resulted in a prior service credit of $26.1 million . Almost all costs associated with Washington Gas’ defined benefit post-retirement plans have historically been, and are expected to be, recovered through Washington Gas’ rates. Therefore, in accordance with ASC Topic 980 and ASC Topic 715, Washington Gas established a regulatory asset/liability for the substantial majority of the unrecognized costs/income associated with its defined benefit post-retirement plans. To the extent these amounts will not be recovered through Washington Gas’ rates, they are recorded directly to “Accumulated other comprehensive loss, net of taxes.” Obligations and Assets Washington Gas uses a measurement date of September 30 for its pension, and retiree healthcare and life insurance benefit plans. The following table provides certain information about Washington Gas’ post-retirement benefits: Post-Retirement Benefits Health and Life (In millions) Pension Benefits (a) Benefits Year Ended September 30, 2018 2017 2018 2017 Change in projected benefit obligation (b) Benefit obligation at beginning of year $ 1,047.5 $ 1,069.3 $ 309.0 $ 324.3 Service cost 14.9 16.5 5.3 5.8 Interest cost 39.6 38.4 11.7 11.7 Change in plan benefits — — — 1.1 Actuarial loss (gain) (65.2 ) (28.2 ) (28.7 ) (18.9 ) Retiree contributions and rebates — — 1.9 1.8 Benefits paid (47.0 ) (48.5 ) (15.9 ) (16.8 ) Projected benefit obligation at end of year (b) $ 989.8 $ 1,047.5 $ 283.3 $ 309.0 Change in plan assets Fair value of plan assets at beginning of year $ 872.5 $ 850.0 $ 540.5 $ 505.0 Actual return on plan assets 38.8 68.6 43.0 48.1 Company contributions 1.8 4.4 5.0 8.2 Retiree contributions and rebates — — 1.9 1.8 Expenses (2.2 ) (2.0 ) (5.2 ) (5.8 ) Benefits paid (47.0 ) (48.5 ) (15.9 ) (16.8 ) Fair value of plan assets at end of year $ 863.9 $ 872.5 $ 569.3 $ 540.5 Funded status at end of year $ (125.9 ) $ (175.0 ) $ 286.0 $ 231.5 Total amounts recognized on balance sheet Non-current asset $ — $ — $ 286.0 $ 231.5 Current liability (20.2 ) (6.5 ) — — Non-current liability (105.7 ) (168.5 ) — — Total recognized $ (125.9 ) $ (175.0 ) $ 286.0 $ 231.5 (a) The DB SERP and DB Restoration, included in pension benefits in the table above, does not include the amounts funded in rabbi trust. (b) For the Health and Life Benefits, the change in projected benefit obligation represents the accumulated benefit obligation. The following table provides the projected benefit obligation (PBO) and accumulated benefit (ABO) for the qualified pension plan, DB SERP and DB Restoration at September 30, 2018 and 2017 . Projected and accumulated benefit obligation (In millions) Qualified Pension Plan DB SERP DB Restoration September 30, 2018 2017 2018 2017 2018 2017 Projected benefit obligation $ 923.6 $ 983.1 $ 62.2 $ 60.2 $ 4.0 $ 4.2 Accumulated benefit obligation $ 859.1 $ 905.8 $ 60.7 $ 57.5 $ 3.0 $ 3.0 AMOUNTS RECOGNIZED IN REGULATORY ASSETS/LIABILITIES AND ACCUMULATED OTHER COMPREHENSIVE INCOME The following table provides amounts recorded to regulatory assets, regulatory liabilities and accumulated other comprehensive loss/(income) at September 30, 2018 and 2017 : Unrecognized Costs/Income Recorded on the Balance Sheet (In millions) Pension Benefits Health and Life Benefits September 30, 2018 2017 2018 2017 Actuarial net loss (gain) $ 61.0 $ 136.1 $ (64.5 ) $ (21.8 ) Prior service cost (credit) 0.9 1.2 (107.2 ) (124.9 ) Total $ 61.9 $ 137.3 $ (171.7 ) $ (146.7 ) Regulatory asset (liability) (a) $ 48.2 $ 119.6 $ (160.5 ) $ (137.2 ) Pre-tax accumulated other comprehensive loss (gain) (b) 13.7 17.7 (11.2 ) (9.5 ) Total $ 61.9 $ 137.3 $ (171.7 ) $ (146.7 ) (a) The regulatory liability recorded on our balance sheets at September 30, 2018 and 2017 is net of a deferred income tax benefit of $ 0.2 million and $2.2 million , respectively. (b) The total amount of accumulated other comprehensive loss recorded on our balance sheets at September 30, 2018 and 2017 is net of an income tax benefit of $0.7 million and $3.6 million , respectively. The following table provides amounts that are included in regulatory assets/liabilities and accumulated other comprehensive loss associated with our unrecognized pension and other post-retirement benefit costs that were recognized as components of net periodic benefit cost during fiscal year 2018 . Amounts Recognized During Fiscal Year 2018 Regulatory assets/liabilities Accumulated other comprehensive loss (In millions) Pension Benefits Health and Life Benefits Pension Benefits Health and Life Benefits Actuarial net loss $ 13.5 $ — $ 2.1 $ — Prior service cost (credit) 0.2 (16.5 ) 0.1 (1.1 ) Total $ 13.7 $ (16.5 ) $ 2.2 $ (1.1 ) The following table provides amounts that are included in regulatory assets/liabilities and accumulated other comprehensive loss associated with our unrecognized pension and other post-retirement benefit costs that are expected to be recognized as components of net periodic benefit cost during fiscal year 2019 Amounts to be Recognized During Fiscal Year 2019 Regulatory assets/liabilities Accumulated other comprehensive loss (In millions) Pension Benefits Health and Life Benefits Pension Benefits Health and Life Benefits Actuarial net loss $ 4.0 $ — $ 1.5 $ — Prior service cost (credit) 0.1 (15.7 ) 0.1 (1.1 ) Total $ 4.1 $ (15.7 ) $ 1.6 $ (1.1 ) Realized and unrealized gains and losses for assets under Washington Gas’ post-retirement benefit plans are spread over a period of five years. Each year, 20% of the prior five years’ asset gains and losses are recognized. The market-related value of assets is equal to the market value of assets less the following percentages of prior years’ realized and unrealized gains and losses on equities: 80% of the prior year, 60% of the second prior year, 40% of the third prior year and 20% of the fourth prior year. Net Periodic Benefit Cost The components of the net periodic benefit costs (income) for fiscal years ended September 30, 2018 , 2017 and 2016 related to pension and other post-retirement benefits were as follows: Components of Net Periodic Benefit Costs (Income) (In millions) Pension Benefits Health and Life Benefits Year Ended September 30, 2018 2017 2016 2018 2017 2016 Service cost $ 14.9 $ 16.5 $ 14.2 $ 5.3 $ 5.8 $ 4.6 Interest cost 39.6 38.4 41.3 11.7 11.7 13.1 Expected return on plan assets (42.3 ) (41.0 ) (40.9 ) (23.7 ) (22.1 ) (20.4 ) Recognized prior service cost (credit) 0.3 0.3 0.3 (17.6 ) (17.7 ) (17.7 ) Recognized actuarial loss 15.6 22.0 16.9 — 1.9 1.2 Net periodic benefit cost 28.1 36.2 31.8 (24.3 ) (20.4 ) (19.2 ) Amount allocated to construction projects (4.7 ) (6.4 ) (5.6 ) 4.0 4.6 4.1 Amount deferred as regulatory asset (liability)-net 6.9 6.9 7.1 — — (0.2 ) Amount charged (credited) to expense $ 30.3 $ 36.7 $ 33.3 $ (20.3 ) $ (15.8 ) $ (15.3 ) Amounts included in the line item “Amount deferred as regulatory asset/liability-net,” as shown in the table above, represent the amortization of previously unrecovered costs of the applicable pension benefits or the health and life benefits as approved in the District of Columbia through 2019. ASSUMPTIONS The weighted average assumptions used to determine net periodic benefit obligations and net periodic benefit costs were as follows: Benefit Obligations Assumptions Pension Benefits Health and Life Benefits September 30, 2018 2017 2018 2017 Discount rate (a) 4.30%-4.40% 3.60%-3.90% 4.40 % 3.90 % Rate of compensation increase 3.50%-4.10% 3.50%-4.10% 4.10 % 4.10 % (a) The increase in the discount rate in fiscal year 2018 compared to prior year primarily reflects the increase in long-term interest rates. Net Periodic Benefit Cost Assumptions Pension Benefits Health and Life Benefits Years Ended September 30, 2018 2017 2016 2018 2017 2016 Discount rate (a) 3.60%-3.90% 3.40%-3.70% 4.10%-4.50% 3.90 % 3.70 % 4.50 % Expected long-term return on plan assets (b) 5.75 % 5.75 % 6.00 % 5.50 % 5.50 % 5.75 % Rate of compensation increase (c) 3.50%-4.10% 3.50%-4.10% 3.50%-4.10% 4.10 % 4.10 % 4.10 % (a) The changes in the discount rates over the last three fiscal years primarily reflect the changes in long-term interest rates. (b) For health and life benefits, the expected returns for certain funds may be lower due to certain portions of income that are subject to an assumed income tax rate of 42.2% . (c) The changes in the rate of compensation reflects the best estimates of actual future compensation levels including consideration of general price levels, productivity, seniority, promotion, and other factors such as inflation rates. Discount Rate Washington Gas determines the discount rate based on a portfolio of high quality fixed-income investments (AA- as assigned by Standard & Poor’s or Aa3 as assigned by Moody’s or better) whose cash flows would cover our expected benefit payments. Expected long-term return on plan assets Washington Gas determines the expected long-term rate of return on plan assets by averaging the expected earnings for the target asset portfolio. In developing the expected rate of return assumption, Washington Gas evaluates an analysis of historical actual performance and long-term return projections, which gives consideration to our asset mix and anticipated length of obligation of our plan. Mortality Assumptions On October 27, 2014, the SOA published updated mortality tables for U.S. plans (RP-2014) and an updated improvement scale (MP-2014), which both reflect improved longevity. Based upon an evaluation of the information provided by the SOA related to the RP-2014 tables and the MP-2014 improvement scale as well as recent additional studies of mortality improvement, we adopted the RP-2014 tables and adopted a modified improvement scale. We have modified the MP-2014 improvement scale to (a) adjust the ultimate long-term rate of mortality improvement from 1.00% to 0.75% per annum up to age 85 trending down to 0% between age 85 and age 115; and (b) shorten the convergence period from short term to ultimate rates of improvement from the 20-year period to a 15-year period. These mortality assumptions were used to determine the benefit obligations as of September 30, 2018 and 2017. Healthcare cost trend Washington Gas assumed the healthcare cost trend rates related to the accumulated post-retirement benefit obligation as of September 30, 2018 , for non-Medicare eligible retirees, to be 6.5% for fiscal year 2019 . Washington Gas expects the trend rate to decrease to 2.2% in fiscal year 2020 and remain at that level thereafter. The healthcare cost trend rate used to measure the accumulated post-retirement benefit obligation for non-Medicare eligible retirees as of September 30, 2017 was 6.3% for fiscal year 2018 . This rate was expected to decrease to 6.0% in fiscal year 2019 , 2.2% in fiscal year 2020 and remain at that level thereafter. Healthcare Trend (In millions) One Percentage-Point Increase One Percentage-Point Decrease Increase (decrease) total service and interest cost components $ 0.6 $ (0.5 ) Increase (decrease) post-retirement benefit obligation $ 5.2 $ (4.6 ) For Medicare eligible retirees age 65 and older that will receive a subsidy each year as a benefit from the HRA plan, Washington Gas assumed no increase to the annual subsidy in fiscal years 2018 and 2019 and a 3.0% increase thereafter in order to approximate possible future increases to the stipend. While the plan terms do not guarantee increases to the stipend, Washington Gas intends to review the stipend annually. INVESTMENT POLICIES AND STRATEGIES The investment objective of the qualified pension, healthcare, and life insurance benefit plans (“Plan” or “Plans”) is to allocate each Plan’s assets to appropriate investment asset classes (asset categories) so that the benefit obligations of each Plan are adequately funded, consistent with appropriate risk tolerance guidelines for the Plans’ and Washington Gas’ tolerance for risk. Washington Gas' portion of retired employee healthcare and life insurance benefits obligation is funded through two trusts: (i) the Washington Gas Light Company Post Retirement Benefit Master Trust for Retired Previously Union-Eligible Employees ("union-eligible trust") and (ii) the Washington Gas Light Company Post Retirement Benefit Master Trust for Retired Management Employees ("management trust"). In order to best achieve the investment objectives for each Plan, strategic allocation targets and ranges are established that control exposure to selected investment asset classes. Target qualified pension plan trust asset allocations are 32% U.S. Equities, 8% International Equities, 5% Real Estate and 55% Fixed Income. Target asset class allocations for the union-eligible and management trusts were modified during August 2018. At September 30, 2018 , target union-eligible trust asset class allocations are 40% U.S. Large-Cap Equities and 60% Fixed Income and target management trust asset class allocations are 50% U.S. Large-Cap Equities and 50% Fixed Income. Actual asset balances are reviewed monthly and allowed to range within plus or minus 5% or less of the target allocations. Assets are generally rebalanced to target allocations before actual amounts fall below or rise above the allowable ranges. Asset/liability modeling (ALM) is used to test the benefits and risks of several potential strategic asset allocation mixes. Simulated investment performance results based on assumptions about expected return, volatility, and correlation characteristics of the selected asset classes are tested for their effects on contributions, pension expense, PBO funded status, and downside Value at Risk metrics over a ten-year planning time horizon. Important outcomes from past ALM studies include decisions to increase fixed income exposure, lengthen the duration of those fixed income assets and implement a dynamic asset allocation strategy that allows for the de-risking of the qualified pension plan portfolio over time. The dynamic asset allocation strategy resulted in a qualified pension plan portfolio de-risking during May 2017 when Fixed Income and U.S. Equities exposures were increased and reduced, respectively. The most recent qualified pension plan ALM study was completed during February 2018. An outcome of the 2018 ALM study was that the dynamic asset allocation strategy was adjusted so that the target fixed income allocation percentage will be increased by 10% (versus a 5% increase previously) for each 5% improvement in the qualified pension plan’s funded ratio, as measured by an investment consultant. The 2018 ALM study did not result in any other significant changes to investment strategy. Significant amounts of each various Plan's assets are managed by the same financial institution. Each Plan has a high exposure to U.S. based investments. There are no other significant risk concentrations related to investments in any entity, industry, country, commodity, or investment fund. Commingled funds are employed in the management of qualified pension plan, management trust, and union-eligible trust assets. A publicly offerable mutual fund and a separately managed portfolio are also employed in the management of qualified pension plan trust and management trust assets. U.S. and international equity assets are diversified across sectors, industries, and investment styles. Fixed income assets are primarily diversified across U.S. government and investment grade corporate debt instruments, with some exposure to foreign sovereign debt and minor exposure to non-investment-grade securities. Real estate is diversified geographically across the U.S. by property type. The qualified pension plan’s investment policy allows the use of futures, options, and other derivatives for purposes of reducing portfolio risk and as a low-cost option for gaining market exposure, but derivatives may not be used for leverage. The qualified pension plan’s investment policy prohibits investments in Washington Gas securities. The prohibition applies to separately managed portfolios but does not apply to any commingled fund investments. The following tables present the fair value of the pension plan assets and health and life insurance plan assets by asset category as of September 30, 2018 and 2017 : Pension Plan Assets % of ($ In millions) Level 1 Level 2 Level 3 Total Total At September 30, 2018 Cash and cash equivalents $ 2.2 $ — $ — $ 2.2 0.3 % Equity securities Preferred Securities — 2.1 — 2.1 0.2 Fixed income securities U.S. Treasuries — 127.6 — 127.6 14.8 U.S. Corporate Debt — 227.8 — 227.8 26.4 U.S. Agency Obligations and Government Sponsored Entities — 28.3 — 28.3 3.3 Asset-Backed Securities — 0.5 — 0.5 0.1 Municipalities — 8.3 — 8.3 1.0 Non-U.S. Corporate Debt — 47.1 — 47.1 5.5 Repurchase Agreement (a) — — — — — Other (b) — 5.2 — 5.2 0.6 Mutual Funds (c) 42.4 — — 42.4 4.9 Derivatives (d) — 1.1 — 1.1 0.1 Total investments in the fair value hierarchy $ 44.6 $ 448.0 $ — $ 492.6 57.2 % Investments measured at net asset value using the NAV practical expedient (e) Commingled Funds and Pooled Separate Accounts (f) 329.3 38.0 % Private Equity/Limited Partnership (g) 39.1 4.5 % Total fair value of plan investments 861.0 99.7 % Net receivable (h) 2.9 0.3 Total plan assets at fair value (i) $ 863.9 100.0 % Pension Plan Assets % of ($ In millions) Level 1 Level 2 Level 3 Total Total At September 30, 2017 Cash and cash equivalents $ 0.7 $ — $ — $ 0.7 0.1 % Equity securities Preferred Securities — 0.6 — 0.6 0.1 Fixed income securities U.S. Treasuries — 140.9 — 140.9 16.2 U.S. Corporate Debt — 232.3 — 232.3 26.6 U.S. Agency Obligations and Government Sponsored Entities — 20.0 — 20.0 2.3 Asset-Backed Securities — 2.0 — 2.0 0.2 Municipalities — 14.9 — 14.9 1.7 Non-U.S. Corporate Debt — 48.1 — 48.1 5.5 Repurchase Agreement (a) 3.7 3.7 0.4 Other (b) — 6.7 — 6.7 0.8 Mutual Funds (c) 41.4 — — 41.4 4.7 Derivatives (d) — 1.9 — 1.9 0.2 Total investments in the fair value hierarchy $ 42.1 $ 471.1 $ — $ 513.2 58.8 % Investments measured at net asset value using the NAV practical expedient (e) Commingled Funds and Pooled Separate Accounts (f) $ 324.4 37.2 % Private Equity/Limited Partnership (g) $ 37.6 4.3 % Total fair value of plan investments 875.2 100.3 % Net payable (h) (2.7 ) (0.3 ) Total plan assets at fair value $ 872.5 100.0 % (a) This category includes Treasury Bills with a pre-commitment from the counterparty to repurchase the same securities on the next business day at an agreed-upon price. (b) This category primarily includes non-U.S. government bonds as of September 30, 2018 and 2017 . (c) At September 30, 2018 and 2017 , the investment in a mutual fund consisted primarily of common stock of non-U.S. based companies. (d) At September 30, 2018 and 2017 , this category included a combination of long-term U.S. Treasury interest rate future contracts, currency forwards, currency option interest rate swaps, and put and call options on both interest rate swaps and credit default swap index products. (e) In accordance with ASC Topic 820, these investments are measured at fair value using NAV per share as a practical expedient and, therefore, have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliations of the fair value hierarchy to the statements of net assets available for plan benefits. (f) As of September 30, 2018 and 2017 , investments in commingled funds and a pooled separate account consisted of approximately 90% common stock U.S companies; 8% income producing properties located in the United States; and 2% short-term money market investments. (g) At September 30, 2018 and 2017 , investments in a private equity/limited partnership consisted of common stock of international companies. (h) At September 30, 2018 and 2017 , this net payable primarily represents pending trades for investments purchased net of pending trades for investments sold and interest receivable. (i) This table does not include $20.2 million rabbi trust investments located in "Current Assets-Other", and $44.8 million rabbi trust investments located in "Deferred Charges and Other Assets-Other" on our consolidated balance sheets. Refer to Note 14— Fair Value Measurements for fair value of rabbi trust investments. Healthcare and Life Insurance Plan Assets % of ($ In millions) Level 1 Level 2 Level 3 Total Total At September 30, 2018 Cash and Cash Equivalents $ 2.9 $ — $ — $ 2.9 0.5 % Fixed Income Securities U.S Agency Obligations — 1.9 — 1.9 0.3 U.S. Treasuries — 50.1 — 50.1 8.8 U.S. Corporate Debt — 55.0 — 55.0 9.8 Municipalities — 4.7 — 4.7 0.8 Non-U.S. Corporate Debt — 9.1 — 9.1 1.6 Other (a) — 3.4 — 3.4 0.6 Total investments in the fair value hierarchy $ 2.9 $ 124.2 $ — $ 127.1 22.3 % Investments measured at net asset value using the NAV practical expedient (b) Commingled Funds (c) 441.6 77.6 % Total fair value of plan investments 568.7 99.9 % Net receivable (d) 0.6 0.1 Total plan assets at fair value $ 569.3 100.0 % At September 30, 2017 Cash and Cash Equivalents $ 2.6 $ — $ — $ 2.6 0.5 % Fixed Income Securities U.S Agency Obligations — 1.7 — 1.7 0.3 U.S. Treasuries — 36.0 — 36.0 6.7 U.S. Corporate Debt — 41.9 — 41.9 7.8 Municipalities — 3.6 — 3.6 0.7 Non-U.S. Corporate Debt — 7.2 — 7.2 1.3 Other (a) — 2.8 — 2.8 0.5 Total investments in the fair value hierarchy $ 2.6 $ 93.2 $ — $ 95.8 17.8 % Investments measured at net asset value using the NAV practical expedient (b) Commingled Funds (c) 444.0 82.1 % Total fair value of plan investments 539.8 99.9 % Net receivable (d) 0.7 0.1 Total plan assets at fair value $ 540.5 100.0 % (a) At September 30, 2018 and 2017 , this category consisted primarily of non-U.S. government bonds. (b) In accordance with ASC Topic 820, these investments are measured at fair value using Net Asset Value (NAV) per share as a practical expedient and, therefore, have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliations of the fair value hierarchy to the statements of net assets available for plan benefits. (c) At September 30, 2018 , investments held by commingled funds in which the plan invests consisted primarily of 58% of common stock of large-cap U.S. companies, 17% of U.S. Government fixed income securities and 25% of corporate bonds. At September 30, 2017 , investments held by commingled funds in which the plan invests consisted primarily of 67% of common stock of large-cap U.S. companies, 13% of U.S. Government fixed income securities and 20% of corporate bonds. (d) At September 30, 2018 and 2017 , this net receivable primarily represents pending trades for investments sold and interest receivable net of pending trades for investments purchased. Valuation Methods Equity securities are traded on a securities exchange and are valued at the closing quoted market price as of the balance sheet date. Mutual funds are valued at the quoted net asset value (NAV) per share, which is computed as of the close of business on the balance sheet date. Mutual funds with a publicly quoted NAV per share are classified as Level 1. Commingled funds and pooled separate accounts are valued at the quoted NAV per unit, computed as of the close of business on the balance sheet date and are not classified in the fair value hierarchy. The Private Equity/Limited Partnership funds is valued at the quoted NAV, which is computed monthly and allocated based on ownership interest in partners’ capital and are not classified in the fair value hierarchy. Fixed income securities are valued using pricing models that consider various observable inputs such as benchmark yields, reported trades, broker quotes and issuer spreads to determine fair value. The Plans may engage in repurchase transactions. Generally, in accordance with the terms of a repurchase agreement, the Plans take possession of Treasury Bills in exchange for cash and the counterparty is obligated to repurchase, and the Plan to resell, the same securities at an agreed-upon price and time. The repurchase agreements have a one-day maturity and a fair value equal to the Plan’s cash outlay at the time the agreement is executed. Benefit Contribution For the qualified pension plan, Washington Gas’ funding policy is to contribute an amount sufficient to satisfy the minimum annual funding requirements under the Pension Protection Act. Any contributions above the minimum annual funding requirements would be limited to amounts that are deductible under appropriate tax law. For the healthcare and life insurance benefit plans, Washington Gas’ funding policy is to contribute amounts that are collected from ratepayers. During fiscal year 2018 , Washington Gas did not contribute to its qualified pension but did contribute $1.8 million to its DB SERP plan. During fiscal year 2019 , Washington Gas does not expect to make a contribution to its qualified pension plan and expects to contribute $20.2 million to its DB SERP, which is expected to be funded by the rabbi trust. During fiscal year 2018 , Washington Gas contributed $5.0 million to its health and life insurance benefit plans. Washington Gas expects to make a contribution of $1.3 million to its health and life insurance benefit plans during fiscal year 2019 . Expected Benefit Payments Expected benefit payments, including benefits attributable to estimated future employee service, which are expected to be paid over the next ten years are as follows: Expected Benefit Payments (In millions) Pension Benefits Health and Life Benefits 2019 $ 68.2 $ 16.6 2020 53.1 15.9 2021 55.1 15.9 2022 56.2 16.0 2023 58.4 16.1 2024—2028 293.8 81.5 REGULATORY MATTERS A significant portion of the estimated pension and post-retirement medical and life insurance benefits apply to our regulated activities. Each regulatory commission having jurisdiction over Washington Gas requires it to fund amounts reflected in rates for post-retirement medical and life insurance benefits into irrevocable trusts. District of Columbia Jurisdiction The PSC of DC has approved a level of rates sufficient to recover annual costs associated with the qualified pension and other post-retirement benefits. Expenses of the SERP allocable to the District of Columbia are not recovered through rates. On May 15, 2013, the PSC of DC issued an order providing for recovery of unrecovered costs for pension and other post-retirement benefits as of the effective date of new rates. On March 3, 2017, the Commission issued an order that continued the amortization for prior unrecovered pension and other post-retirement benefits through 2019. Maryland Jurisdiction In Washington Gas’ most recent rate case, the PSC of MD approved 50% of the expenses of the SERP for recovery through rates. The PSC of MD has approved a level of rates sufficient to recover pension and other post-retirement benefit costs as determined under GAAP. Virginia Jurisdiction On September 28, 1995, the SCC of VA issued a generic order that allowed Washington Gas to recover most costs determined under GAAP for post-retirement medical and life insurance benefits in rates over twenty years. The SCC of VA, however, set a forty-year recovery period of the transition obligation. As prescribed by GAAP, Washington Gas amortizes these costs over a twenty-year period. With the exception of the transition obligation, the SCC of VA has approved a level of rates sufficient to recover annual costs for all pension and other post-retirement medical and life insurance benefit costs determined under GAAP. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION Stock-Based Compensation for Key Employees We have stock-based awards outstanding in the form of performance shares and performance units. In March 2016, WGL adopted a shareholder-approved Omnibus Plan (2016 Plan) to replace, on a prospective basis, the Omnibus Incentive Plan (2007 Plan). Stock options, stock appreciation rights, restricted stock, deferred stock as a bonus or awards in lieu of obligations, dividend equivalents, other stock-based awards and cash awards may be granted under the 2016 Plan. Effective upon the Merger with AltaGas, WGL no longer has common stock outstanding and no new awards will be issued in WGL stock. Description of Awards Prior to the Merger with AltaGas, WGL had stock-based awards outstanding in the form of performance shares and performance units. All stock-based awards outstanding had a three -year vesting period and were granted in fiscal years 2016, 2017 and 2018. Performance shares are accounted for as equity awards, and performance units are accounted for as liability awards as they are settled in cash. Both awards were subject to certain market or performance conditions. Both performance units and performance shares provided for accelerated vesting upon a change in control of WGL under certain circumstances. Performance Shares Performance shares earned pursuant to the terms of the grant have typically been settled in an equivalent number of shares of WGL common stock and dividend equivalents paid in cash. We generally would issue new shares of common stock to provide for redemption of performance shares; however, we may, from time to time, repurchase shares of our common stock on the open market in order to meet these requirements. For performance shares granted in fiscal years 2017 and 2016, half of the performance shares vested from zero to 200 percent of the target award based on WGL's total shareholder return relative to a selected peer group of companies, which is a market condition under ASC Topic 718 (TSR Award). The remaining half of the performance shares granted in fiscal years 2017 and 2016 vested if our non-GAAP operating earnings per share on a diluted basis exceed dividends paid per share of common stock during the performance period, which is a performance condition under ASC Topic 718 (Dividend Coverage Award). For half of the performance shares granted in fiscal year 2018, the actual award vested from zero to 200 percent of the target award based on our return on equity ratio achieved during the performance period, which is a performance condition under ASC Topic 718 (ROE Award). The remaining half of the performance shares granted in fiscal year 2018 were Dividend Coverage Awards. We recognize compensation expense related to performance shares over the three year requisite service period. Compensation expense for performance shares that vest based on the satisfaction of a performance condition is recognized for awards that ultimately vest and is adjusted to the actual outcome of the performance condition. Compensation expense for performance shares that vest based on the satisfaction of a market condition is recognized at the grant date fair value if the requisite service is rendered, but is not adjusted to reflect the ultimate achievement of the market condition. The fair value of each performance unit that vests based on the satisfaction of a market condition is estimated using a Monte Carlo simulation model at the grant date. The total intrinsic value of performance shares vested during the year ended September 30, 2018 and 2017 was $17.8 million and $10.2 million , respectively. The fair value of each performance unit that vests based on the satisfaction of a market condition is estimated using a Monte Carlo simulation model at the grant date. Performance Units Performance units earned pursuant to terms of the grant are paid in cash and are valued at $1.00 per performance unit. For performance units granted in fiscal years 2017 and 2016, half of the performance units were TSR Awards and half were ROE Awards. All the performance units granted in fiscal year 2018 were ROE Awards. Our performance units are liability awards accounted for under ASC 710 as they only settle in cash; therefore, we measure and record compensation expense for these awards based on their fair value at the end of each period until their vesting date. The percentage of the fair value that is accrued as compensation expense at the end of each period equals the percentage of the requisite service that has been rendered at that date. Consequently, fluctuations in earnings may result, that do not occur under the accounting requirements for our performance shares. The fair value of each performance unit that vests based on the satisfaction of a market condition is estimated using a Monte Carlo simulation model. The fair value of each performance unit that vests based on the satisfaction of a performance condition is $1.00 . The amount of total compensation cost to be recognized for these performance units is a function of this fair value and the number of awards vested as a result of the performance condition being met and the requisite service provided. As of September 30, 2017, we recorded a current and deferred liability of $17.6 million , related to our performance units. The current liability was recorded in "Accounts payable and other accrued liabilities-other" in the amount of $8.9 million at September 30, 2017. The deferred liability was recorded in “Deferred Credits-other” in the amount of $8.7 million , at September 30, 2017. During the fiscal year ended September 30, 2018, we paid an additional $8.9 million in cash to settle performance unit awards that vested before the Merger. Modification Event Upon the Merger with AltaGas, the vesting for the stock-based awards granted in fiscal years 2017 and 2016 was accelerated and the awards were paid in cash, with no additional service required. All performance shares were converted into cash at a value of $88.25 per share. All performance units remained at a value of $1.00 per unit. The TSR Awards were paid at the greater of actual total shareholder return performance or the target award value. The ROE Awards and Dividend Coverage Awards were paid at the target award value. Any dividend equivalents for the performance share awards were also paid in cash. The stock-based awards granted in fiscal year 2018 were converted to a fixed cash amount at the target award level, and still require vesting in accordance with the original three-year period. All performance shares were converted into cash at a value of $ 88.25 per share. All performance units remained at a value of $1.00 per unit. These awards will be accounted for under ASC Topic 710 for the remaining service period. During the fiscal year ended September 30, 2018, we paid $32.4 million in cash to settle the fiscal year 2017 and 2016 awards that were accelerated. For the fiscal year ended September 30, 2018, we recognized $20.3 million compensation expense, of which $7.9 million related to a one-time charge for the acceleration of the fiscal year 2017 and 2016 grants and conversion of the fiscal year 2018 grant to a fixed cash amount. As of September 30, 2018, total unrecognized compensation expense related to stock-based awards granted in fiscal year 2018 was $5.5 million , which will be ratable over a period of 2 years. As of September 30, 2018, we recorded a deferred liability of $3.4 million related to the grant in “Deferred Credits-other”. During the fiscal year ended September 30, 2017, we paid $6.9 million in cash to settle performance unit awards. For the fiscal years ended September 30, 2017 and 2016, we recognized stock-based compensation expense of $16.4 million and $11.5 million , respectively, and related income tax benefits of $6.5 million and $4.6 million , respectively. The following table summarizes information regarding performance share activity during the fiscal year ended September 30, 2018 . Performance Share Activity Year Ended September 30, 2018 Number of Shares Weighted Average Grant- Date Fair Value Non-vested and outstanding, beginning of year 274,882 $ 57.05 Granted 64,796 84.20 Settled (105,748 ) 44.44 Accelerated due to merger (159,778 ) 64.94 Cancelled/forfeited (10,074 ) 66.24 Converted to a Cash Award (a) (64,078 ) $ 88.25 Non-vested and outstanding, end of year (a) — $ — (a) Due to the modification event, these shares were converted to a cash award at target and are no longer performance-based. The following table summarizes information regarding performance unit activity during the fiscal year ended September 30, 2018 . Performance Unit Activity Year Ended September 30, 2018 Number of Units Non-vested and outstanding, beginning of year 14,631,998 Granted 5,456,077 Settled (4,454,200 ) Accelerated due to merger (9,615,564 ) Cancelled/forfeited (622,690 ) Converted to a Cash Award (a) (5,395,621 ) Non-vested and outstanding, end of year (a) — (a) Due to the modification event, these units are no longer performance-based and were converted to a fixed cash amount at a value of $1.00 per unit. The amount of total compensation cost to be recognized for these performance units is a function of this estimated fair value and the number of awards granted for which the requisite service is provided. Stock Grants to Directors Prior to the Merger with AltaGas, non-employee directors receive a portion of their annual retainer fee in the form of WGL common stock through the Directors’ Stock Compensation Plan. Up to 270,000 shares of common stock may be awarded under the plan. Shares granted to directors were approximately 9,000 , 10,000 and 13,000 for the fiscal years ended September 30, 2018 , 2017 and 2016 , respectively. For those years, the weighted average fair value of the stock on the grant dates was $85.84 , $76.28 , and $62.99 , respectively. Shares awarded to the participants; (i) vest immediately and cannot be forfeited; (ii) may be sold or transferred (subject to WGL's stock ownership guidelines) and (iii) have voting and dividend rights. For each of the fiscal years ended September 30, 2018 , 2017 and 2016 , WGL recognized stock-based compensation expense related to stock grants of $0.8 million . No new common stock awards will be granted to directors. |
Environmental Matters
Environmental Matters | 12 Months Ended |
Sep. 30, 2018 | |
Environmental Remediation Obligations [Abstract] | |
Environmental Matters | ENVIRONMENTAL MATTERS We are subject to federal, state and local laws and regulations related to environmental matters. These laws and regulations may require expenditures over a long time frame to control environmental effects. Almost all of the environmental liabilities we have recorded are for costs expected to be incurred to remediate sites where we or a predecessor affiliate operated MGPs. Estimates of liabilities for environmental response costs are difficult to determine with precision because of the various factors that can affect their ultimate level. These factors include, but are not limited to, the following: • the complexity of the site; • changes in environmental laws and regulations at the federal, state and local levels; • the number of regulatory agencies or other parties involved; • new technology that renders previous technology obsolete or experience with existing technology that proves ineffective; • the level of remediation required; and • variations between the estimated and actual period of time that must be dedicated to respond to an environmentally-contaminated site. Washington Gas has identified up to ten sites where it or its predecessors may have operated MGPs. Washington Gas last used any such plant in 1984. In connection with these operations, we are aware that coal tar and certain other by-products of the gas manufacturing process are present at or near some former sites and may be present at others. At September 30, 2018 and 2017 , Washington Gas reported a liability of $ 10.2 million and $ 7.7 million , respectively, on an undiscounted basis related to future environmental response costs. These estimates principally include the minimum liabilities associated with a range of environmental response costs expected to be incurred. At September 30, 2018 and 2017 , Washington Gas estimated the maximum liability associated with all of its sites to be approximately $ 27.3 million and $ 24.0 million , respectively. The estimates were determined by Washington Gas’ environmental experts, based on experience in remediating MGP sites and advice from legal counsel and environmental consultants. The variation between the recorded and estimated maximum liability primarily results from differences in the number of years that will be required to perform environmental response processes and the extent of remediation that may be required. Washington Gas is currently remediating its East Station property, which is adjacent to the Anacostia River, including ground water pump and treat, tar recovery, soil encapsulation and other treatment. Washington Gas is conducting a remedial investigation and feasibility study under a 2012 consent decree with the District of Columbia and the federal government and additional remediation may be required. In addition, manufactured gas waste was discovered at an adjoining property , a parcel of land adjacent to East Station. Washington Gas has agreed to work with the owners of the adjoining property to perform a site investigation, ground water sampling, and report on the contamination at the site pursuant to oversight by Department of Energy and Environment (DOEE). Washington Gas received a letter in February 2016 from the District of Columbia and National Park Service regarding the Anacostia River Sediment Project, indicating that the District of Columbia is conducting a separate remedial investigation and feasibility study of the river to determine if and what cleanup measures may be required and to prepare a natural resource damage assessment. The sediment project draft remedial investigation report issued on March 30, 2018 identifies East Station as one of seventeen potential environmental cleanup sites. During the fiscal year ended September 30, 2017, Washington Gas received a request for information related to three Washington Gas properties. We are not able to estimate the total amount of potential damages or timing associated with the District of Columbia's environmental investigation on the Anacostia River at this time. While an allocation method has not been established, Washington Gas has accrued an amount based on a potential range of estimates. Regulatory orders issued by the PSC of MD allow Washington Gas to recover the costs associated with the sites applicable to Maryland over the period ending in 2025. Rate orders issued by the PSC of DC allow Washington Gas a three -year recovery of prudently incurred environmental response costs and allow Washington Gas to defer additional costs incurred between rate cases. Regulatory orders from the SCC of VA have generally allowed the recovery of prudent environmental remediation costs to the extent they were included in the underlying financial data supporting an application for rate change. At September 30, 2018 and 2017 , Washington Gas reported a regulatory asset of $ 5.0 million and $ 2.5 million , respectively, for the portion of environmental response costs that are expected to be recoverable in future rates. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES OPERATING LEASES Minimum future rental payments under operating leases over the next five years and thereafter are as follows: Minimum Payments Under Operating Leases (a) (In millions) 2019 $ 5.6 2020 9.2 2021 10.1 2022 9.6 2023 9.7 Thereafter 86.6 Total $ 130.8 (a) During the fiscal year 2018, we moved our headquarter to the office located at 1000 Maine Ave., S.W. Washington, D.C. The operating lease of the previous office located at 101 Constitution Ave., N.W. Washington, D.C. ended in August 2018. Rent expense totaled $9.0 million , $8.7 million and $8.4 million in fiscal years ended September 30, 2018 , 2017 and 2016 , respectively. REGULATED UTILITY OPERATIONS Natural Gas Contracts—Minimum Commitments At September 30, 2018 , Washington Gas had service agreements with four pipeline companies that provide direct service for firm transportation and/or storage services. These agreements, which have expiration dates ranging from fiscal years 2020 to 2045 , require Washington Gas to pay fixed charges each month. Additionally, Washington Gas had agreements for other pipeline and peaking services with expiration dates ranging from 2020 to 2027. These agreements were entered into based on current estimates of growth of the Washington Gas system, together with other factors, such as current expectations of the timing and extent of unbundling initiatives in the Washington Gas service territory. The following table summarizes the minimum contractual payments that Washington Gas will make under its pipeline transportation, storage and peaking contracts, as well as minimum contractual payments to purchase natural gas at prices based on market conditions during the next five fiscal years and thereafter. Washington Gas Contract Minimums (In millions) Pipeline Contracts (a) Gas Purchase Commitments (b) 2019 $ 482.4 $ 439.6 2020 372.6 387.0 2021 364.7 362.2 2022 361.0 348.2 2023 360.5 327.7 Thereafter 1,192.9 2,672.5 Total $ 3,134.1 $ 4,537.2 (a) Represents minimum payments for natural gas transportation, storage and peaking contracts that have expiration dates through fiscal year 2045 . (b) Includes known and reasonably likely commitments to purchase natural gas. Cost estimates are based on forward market prices at September 30, 2018 . When a customer selects a third-party marketer to provide supply, Washington Gas generally assigns pipeline and storage capacity to unregulated third-party marketers to deliver gas to Washington Gas’ city gate. In order to provide the gas commodity to customers who do not select an unregulated third-party marketer, Washington Gas has a commodity acquisition plan to acquire the natural gas supply to serve the customers. To the extent these commitments are to serve its customers, Washington Gas has rate provisions in each of its jurisdictions that would allow it to continue to recover these commitments in rates. Washington Gas also actively manages its supply portfolio to ensure its sales and supply obligations remain balanced. This reduces the likelihood that the contracted supply commitments would exceed supply obligations. However, to the extent Washington Gas were to determine that changes in regulation would cause it to discontinue recovery of these costs in rates, Washington Gas would be required to charge these costs to expense without any corresponding revenue recovery. If this occurred, depending upon the timing of the occurrence, the related impact on our financial position, results of operations and cash flows would likely be significant. Silver Spring, Maryland Incident Washington Gas has continually worked with the NTSB to support its investigation of the August 10, 2016 explosion and fire at an apartment complex on Arliss Street in Silver Spring, Maryland, the cause of which has not been determined. Additional information will be made available by the NTSB at the appropriate time. A total of 40 civil actions related to the incident have been filed against WGL and Washington Gas in the Circuit Court for Montgomery County, Maryland. All of these suits seek unspecified damages for personal injury and/or property damage. The one action seeking class action status has been amended to assert property damage and loss of use claims. We maintain excess liability insurance coverage from highly-rated insurers, subject to a nominal self-insured retention. We believe that this coverage will be sufficient to cover any significant liability to it that may result from this incident. Management is unable to determine a range of potential losses that are reasonably possible of occurring and therefore we have not recorded a reserve associated with this incident. Washington Gas was invited by the NTSB to be a party to the investigation and in that capacity, has continued to work closely with the NTSB to help determine the cause of this incident. Regulatory Contingencies Certain legal and administrative proceedings incidental to our business, including regulatory contingencies, involve WGL and/or its subsidiaries. In our opinion, we have recorded an adequate provision for probable losses or refunds to customers for regulatory contingencies related to these proceedings. Application for Approval of Reduction of Distribution Rates On January 12, 2018, Washington Gas filed applications to reduce customer rates in Maryland, Virginia, and the District of Columbia to reflect the impact of the Tax Act, including both the impact of the re-measurement of deferred tax assets and liabilities and reduction of the federal tax rate to 21%. Washington Gas began tracking the impact of the Tax Act on revenue requirements beginning January 1, 2018, recording all impacts to regulatory assets and liabilities. In Maryland, the PSC of MD approved the application effective for bills rendered on or after February 1, 2018. In Virginia, the application was dismissed on March 15, 2018 and Washington Gas will file a new general rate case in July 2018. On June 29, 2018, the PSC of DC approved the settlement agreement, reflecting an annual reduction in Washington Gas’ distribution rates of $8.3 million , effective for service rendered on or after July 1, 2018. The settling parties were directed to file a joint proposal, by August 1, 2018, depicting the regulatory liability balance for the period January 1, 2018 through June 30, 2018, which will be refunded to customers through a one-time bill credit beginning with Washington Gas’ December 2018 billing cycle. Washington Gas has recorded regulatory liabilities, representing the amounts owed to customers for reduced rates between January 1, 2018 and September 30, 2018 of $13.0 million and $5.1 million , for Virginia and the District of Columbia respectively. Please refer to Note 8— Income taxes for more information. Virginia Jurisdiction Virginia Rate Case. On April 17, 2017, Washington Gas filed with the SCC of VA a unanimous settlement as to a specific annual revenue increase, but not as to a specific return on equity, specific accounting adjustments, or specific ratemaking methodologies, except as otherwise set forth therein. The Stipulation set forth, for purposes of settlement, a base rate increase of $34 million (of which $14.1 million represents incremental base rate revenues over and above the inclusion of SAVE Plan costs which were previously recovered through monthly surcharges). For purposes of the settlement, the mid-point of the return on equity range of 9.0% - 10.0% will be used in any application or filing, other than a change in base rates, effective December 1, 2016. On June 30, 2017, the Chief Hearing Examiner issued a report recommending that the SCC of VA approve the Stipulation. On September 8, 2017, Washington Gas received a final order from the SCC of VA accepting settlement subject to minor modifications to Washington Gas’ System Expansion Proposals. All parties agreed to a Revised Stipulation filed on September 20, 2017, reflecting the SCC of VA’s denial of one of the System Expansion Proposals and Washington Gas’ withdrawal of the second one. The SCC of VA issued its final order approving the revised stipulation on September 25, 2017. Refunds to customers, which have been accrued by Washington Gas at December 31, 2017, were completed on February 7, 2018. On August 3, 2018, the Commission issued a final order directing Washington Gas to issue refunds, with interest, to all customers when the substitution of final rates resulted in an amount greater than the amount collected during the interim period. Washington Gas has booked a receivable of $0.9 million at September 30, 2018 related to this matter. NON-UTILITY OPERATIONS WGL Energy Services enters into contracts to purchase natural gas and electricity designed to match the duration of its sales commitments, and to secure a margin on estimated sales over the terms of existing sales contracts. WGL Midstream enters into contracts to acquire, invest in, manage and optimize natural gas storage and transportation assets. The following table summarizes the minimum commitments and contractual obligations of WGL Energy Services and WGL Midstream for the next five fiscal years and thereafter. Contract Minimums WGL Energy Services WGL Midstream (In millions) Gas Purchase Commitments (a) Pipeline Contracts (b) Electric Purchase Commitments (c) Gas Purchase Commitments (d) Pipeline Contracts (b) Total 2019 $ 190.4 $ 3.2 $ 328.8 $ 1,203.2 $ 216.6 $ 1,942.2 2020 100.2 1.7 213.8 1,279.9 220.3 1,815.9 2021 42.0 1.1 97.0 1,156.9 209.4 1,506.4 2022 12.2 0.3 32.9 1,111.3 205.3 1,362.0 2023 3.3 0.3 1.9 1,113.2 197.1 1,315.8 Thereafter 0.4 0.3 0.3 17,740.2 2,174.1 19,915.3 Total $ 348.5 $ 6.9 $ 674.7 $ 23,604.7 $ 3,222.8 $ 27,857.6 (a) Represents fixed price commitments with city gate equivalent deliveries. (b) Represents minimum payments for natural gas transportation and storage contracts that have expiration dates through fiscal year 2044. (c) Represents electric purchase commitments that are based on existing fixed price and fixed volume contracts. Includes $31.6 million of commitments related to renewable energy credits. (d) Includes known and reasonably likely commitments to purchase natural gas. Cost estimates are based on forward market prices as of September 30, 2018 . Certain of our gas purchase agreements have optionality, which may cause increases in these commitments. Financial Guarantees WGL has guaranteed payments primarily for certain commitments on behalf of some of its subsidiaries. WGL has also guaranteed payments for certain of our external partners. At September 30, 2018 , there were no guarantees to external parties. Antero Contract Washington Gas and WGL Midstream contracted in June 2014 with Antero Resources Corporation (Antero) to buy gas from Antero at invoiced prices based on an index, and at a delivery point, specified in the contracts. Since deliveries began, however, the index price paid has been more than the fair market value at the same physical delivery point, resulting in losses to date of $29.6 million . Accordingly, Washington Gas and WGL Midstream notified Antero that it sought to apply a provision of the contracts that would permit a new index to be established. Antero objected, claiming that the contract provisions permitting re-pricing did not apply, unless Antero itself chose to sell gas at cheaper prices at the delivery point (which Antero claimed it had not). The dispute was arbitrated in January 2017, and the arbitral tribunal ruled in favor of Antero on the applicability of the re-pricing mechanism. However, the tribunal ruled that it lacked authority to determine whether Antero was in breach of its obligation to deliver gas to Washington Gas and WGL Midstream at a point where they could obtain the higher pricing. Accordingly, Washington Gas and WGL Midstream filed suit in state court in Colorado for a determination of this issue. The state court initially granted Antero's motion to dismiss the case and we subsequently filed an appeal. In October 2018, the Court of Appeals reversed the state court's decision and should remand the lawsuit to the trial court within the next 30 to 60 days. Separately, Antero has initiated suit against Washington Gas and WGL Midstream, claiming that they have failed to purchase specified daily quantities of gas and seeking alleged cover damages exceeding $100 million as of April 4, 2018, according to Antero's complaint. Washington Gas and WGL Midstream oppose both the validity and amount of Antero’s claim. WGL believes any loss associated with these claims to be remote and therefore, no accrual was made as of September 30, 2018 . The jury trial has been tentatively scheduled for March 2019. In December 2017, WGL Midstream amended its purchase contract with Antero and, effective February 1, 2018, is no longer obligated to purchase gas at the delivery point that is the subject of these disputes. MERGER RELATED COMMITMENTS For a discussion of merger related commitments, refer to Note 20 — Merger with AltaGas Ltd. of the Notes to Consolidated Financial Statements. |
Derivative and Weather Related
Derivative and Weather Related Instruments | 12 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative and Weather-Related Instruments | DERIVATIVE AND WEATHER-RELATED INSTRUMENTS DERIVATIVE INSTRUMENTS Regulated Utility Operations Washington Gas enters into contracts that qualify as derivative instruments and are accounted for under ASC Topic 815. These derivative instruments are recorded at fair value on our balance sheets and Washington Gas does not currently designate any derivatives as hedges under ASC Topic 815. Washington Gas’ derivative instruments relate to: (i) Washington Gas’ asset optimization program; (ii) managing price risk associated with the purchase of gas to serve utility customers and (iii) managing interest rate risk. Asset Optimization. Washington Gas optimizes the value of its long-term natural gas transportation and storage capacity resources during periods when these resources are not being used to physically serve utility customers. Specifically, Washington Gas utilizes its transportation capacity assets to benefit from favorable natural gas prices between different geographic locations and utilizes its storage capacity assets to benefit from favorable natural gas prices between different time periods. As part of this asset optimization program, Washington Gas enters into physical and financial derivative transactions in the form of forward, futures and option contracts with the primary objective of securing operating margins that Washington Gas will ultimately realize. The derivative transactions entered into under this program are subject to mark-to-market accounting treatment under ASC Topic 820. Regulatory sharing mechanisms provide for the annual realized profit from these transactions to be shared between Washington Gas' shareholders and customers; therefore, changes in fair value are recorded through earnings, or as regulatory assets or liabilities to the extent that it is probable that realized gains and losses associated with these derivative transactions will be included in the rates charged to customers when they are realized. Unrealized gains and losses recorded to earnings may cause significant period-to-period volatility; this volatility does not change the operating margins that Washington Gas expects to ultimately realize from these transactions through the use of its storage and transportation capacity resources. All physically and financially settled contracts under our asset optimization program are reported on a net basis in the statements of income in “Utility cost of gas.” Total net margins recorded to “Utility cost of gas” after sharing and management fees associated with all asset optimization transactions for the fiscal year ended September 30, 2018 was a net gain of $34.3 million including an unrealized gain of $10.4 million . During the fiscal year ended September 30, 2017 , we recorded a net gain of $82.9 million including an unrealized gain of $49.3 million . During the fiscal year ended September 30, 2016 , we recorded a net gain of $43.8 million including an unrealized gain of $12.0 million . Managing Price Risk. To manage price risk associated with acquiring natural gas supply for utility customers, Washington Gas enters into physical and financial derivative transactions in the form of forward, option and other contracts, as authorized by its regulators. Any gains and losses associated with these derivatives are recorded as regulatory liabilities or assets, respectively, to reflect the rate treatment for these economic hedging activities. Managing Interest-Rate Risk. Washington Gas may utilize derivative instruments that are designed to minimize the risk of interest-rate volatility associated with planned issuances of debt securities. Any gains and losses associated with these types of derivatives are recorded as regulatory liabilities or assets, respectively, and amortized in accordance with regulatory requirements, typically over the life of the related debt. Non-Utility Operations Trading Activities. WGL Midstream enters into derivative contracts for the purpose of optimizing its storage and transportation capacity as well as managing the transportation and storage assets on behalf of third parties. WGL Midstream does not designate these derivatives as hedges under ASC Topic 815; therefore, changes in the fair value of these derivative instruments are reflected in the earnings of our non-utility operations and may cause significant period-to-period volatility in earnings. Managing Price Risk. WGL Energy Services enters into certain derivative contracts as part of its strategy to manage the price risk associated with the sale and purchase of natural gas and electricity. WGL Energy Services elects "normal purchases and normal sales" treatment for a portion of these physical contracts related to the purchase of natural gas and electricity to serve its customers and therefore, they are not subject to the fair value accounting requirements of ASC Topic 815. Derivative instruments not designated as "normal purchases and normal sales" are recorded at fair value on our consolidated balance sheets, and changes in the fair value of these derivative instruments are reflected in the earnings of our non-utility operations, which may cause significant period-to-period volatility in earnings. WGL Energy Services does not designate derivatives as hedges under ASC Topic 815. Managing Interest-Rate Risk. WGL utilizes derivative instruments that are designed to limit the risk of interest-rate volatility associated with future debt issuances. WGL had $250 million of 30-year forward starting interest rate swaps which settled in January 2018. Through December 2016, WGL had designated these interest rate swaps as cash flow hedges in anticipation of a 30-year debt issuance in January 2018 and reported the effective portion of changes in fair value as a component of other comprehensive income (loss). As a result of certain covenants related to the proposed merger with AltaGas, in January 2017, WGL de-designated these hedges as it was no longer probable that the debt would be issued and any further changes in the fair value of the interest rate swaps were recorded in interest expense. Subsequent to the Merger on July 6, 2018, the debt issuance is no longer reasonably possible of occurring and, therefore, the $6.4 million net of tax gain recorded in accumulated other comprehensive income that was associated with the cash flow hedges through December 31, 2016 was recorded to income during the quarter ending September 30, 2018. In January 2018, WGL settled these swaps for a gain of $13.8 million . For the twelve months ended September 30, 2018 , we recorded income of $19.4 million to interest expense related to these swaps. Refer to Note 20— Merger With AltaGas LTD . for a discussion of the Merger. WGL's comprehensive income (loss) also includes amounts for settled hedges related to prior debt issuances, which are being amortized to income over the life of the outstanding debt. The amortization was minimal for the twelve months ended September 30, 2018 and 2017 . Consolidated Operations Reflected in the tables below is information for WGL as well as Washington Gas. The information for WGL includes derivative instruments for both utility and non-utility operations. At September 30, 2018 and 2017 , respectively, the absolute notional amounts of our derivatives were as follows: Absolute Notional Amounts of Open Positions on Derivative Instruments Derivative transactions Notional Amounts September 30, 2018 WGL Holdings Washington Gas Natural Gas (In millions of therms) Asset optimization & trading 26,943.0 13,580.0 Retail sales 110.8 — Other risk-management activities 1,421.8 1,066.0 Electricity (In millions of kWhs) Retail sales 8,449.2 — Other risk-management activities (a) 27,833.9 — Interest Rate Swaps (In millions of dollars) $ — $ — September 30, 2017 Natural Gas (In millions of therms) Asset optimization & trading 21,663.5 11,223.0 Retail sales 124.3 — Other risk-management activities 1,546.7 1,181.0 Electricity (In millions of kWhs) Retail sales 10,011.7 — Other risk-management activities (a) 22,962.1 — Interest Rate Swaps (In millions of dollars) 250.0 $ — (a) Comprised primarily of financial swaps, financial transmission rights and physical forward purchases. The following tables present the balance sheet classification for all derivative instruments as of September 30, 2018 and 2017 . WGL Holdings, Inc. Balance Sheet Classification of Derivative Instruments (b) (In millions) As of September 30, 2018 Gross Derivative Assets Gross Derivative Liabilities Netting of Collateral Total (a) Current Assets—Derivatives $ 39.6 $ (3.2 ) $ — $ 36.4 Deferred Charges and Other Assets—Derivatives 21.8 (1.2 ) — 20.6 Accounts Payable — (0.9 ) — (0.9 ) Current Liabilities—Derivatives 23.1 (55.6 ) 9.8 (22.7 ) Deferred Credits—Derivatives 9.8 (142.1 ) 11.8 (120.5 ) Total $ 94.3 $ (203.0 ) $ 21.6 $ (87.1 ) As of September 30, 2017 Current Assets—Derivatives $ 26.6 $ (11.3 ) $ — $ 15.3 Deferred Charges and Other Assets—Derivatives 38.9 (0.4 ) (0.1 ) 38.4 Accounts Payable 1.0 1.0 Current Liabilities—Derivatives 10.9 (57.0 ) 2.1 (44.0 ) Deferred Credits—Derivatives 19.2 (148.8 ) 7.0 (122.6 ) Total $ 96.6 $ (217.5 ) $ 9.0 $ (111.9 ) Washington Gas Light Company Balance Sheet Classification of Derivative Instruments (b) (In millions) As of September 30, 2018 Gross Gross Netting of Total (a) Current Assets—Derivatives $ 17.8 $ (0.4 ) $ — $ 17.4 Deferred Charges and Other Assets—Derivatives 8.7 — — 8.7 Current Liabilities—Derivatives 2.6 (20.2 ) 2.8 (14.8 ) Deferred Credits—Derivatives (1.6 ) (102.6 ) — (104.2 ) Total $ 27.5 $ (123.2 ) $ 2.8 $ (92.9 ) As of September 30, 2017 Current Assets—Derivatives $ 7.5 $ (2.4 ) $ — $ 5.1 Deferred Charges and Other Assets—Derivatives 16.5 (0.3 ) — 16.2 Current Liabilities—Derivatives — (30.3 ) — (30.3 ) Deferred Credits—Derivatives — (112.3 ) — (112.3 ) Total $ 24.0 $ (145.3 ) $ — $ (121.3 ) (a) WGL has elected to offset the fair value of recognized derivative instruments against the right to reclaim or the obligation to return collateral for derivative instruments executed under the same master netting arrangement in accordance with ASC Topic 815. All recognized derivative contracts and associated financial collateral subject to a master netting arrangement or similar that is eligible for offset under ASC Topic 815 have been presented net in the balance sheet. (b) WGL and Washington Gas did not have derivative instruments outstanding that were designated as hedging instruments at September 30, 2018 or 2017 . The following tables present all gains and losses associated with derivative instruments for the years ended September 30, 2018 , 2017 and 2016 . Gains and (Losses) on Derivative Instruments (In millions) WGL Holdings, Inc. Washington Gas Fiscal Year Ended September 30, 2018 2017 2016 2018 2017 2016 Recorded to income Operating revenues—non-utility $ (30.1 ) $ 30.8 $ 5.8 $ — $ — $ — Utility cost of gas (2.1 ) 50.1 12.1 (2.1 ) 50.1 12.1 Non-utility cost of energy-related sales 20.3 33.5 33.5 — — — Interest income (expense) 19.2 (5.8 ) (0.2 ) — — — Recorded to regulatory assets Gas costs (7.6 ) 77.2 13.9 (7.6 ) 77.2 13.9 Other (a) — — (7.3 ) — — (7.3 ) Recorded to other comprehensive income (b) (6.4 ) 49.6 (39.3 ) — — — Total $ (6.7 ) $ 235.4 $ 18.5 $ (9.7 ) $ 127.3 $ 18.7 (a) Represents the settlement of Washington Gas' forward starting interest rate swap in September 2016. (b) Represents the effective portion of our cash flow hedges. Includes $ 0.2 million , $ 0.2 million , and $ 0.2 million of amortization of the losses related to interest rate hedges for WGL for September 30, 2018 , 2017 , and 2016 respectively. Collateral WGL utilizes standardized master netting agreements, which facilitate the netting of cash flows into a single net exposure for a given counterparty. As part of these master netting agreements, cash, letters of credit and parent company guarantees may be required to be posted or obtained from counterparties in order to mitigate credit risk related to both derivatives and non-derivative positions. Under WGL’s offsetting policy, collateral balances are offset against the related counterparties’ derivative positions to the extent the application would not result in the over-collateralization of those derivative positions on the balance sheet. The table below presents collateral not offset against derivative assets and liabilities at September 30, 2018 and 2017 , respectively. Collateral Not Offset Against Derivative Assets and Liabilities (In millions) September 30, 2018 Collateral deposits posted with counterparties Cash collateral held representing an obligation Washington Gas $ 10.6 $ 2.7 WGL Energy Services 20.6 — WGL Midstream 28.9 0.4 September 30, 2017 Washington Gas $ 3.7 $ 0.1 WGL Energy Services 23.7 — WGL Midstream 44.4 1.6 Any collateral posted that is not offset against derivative assets and liabilities is included in “Other prepayments” in the accompanying balance sheets. Collateral received and not offset against derivative assets and liabilities is included in “Customer deposits and advance payments” in the accompanying balance sheets. Certain derivative instruments of WGL, Washington Gas, WGL Energy Services and WGL Midstream contain contract provisions that require collateral to be posted if the credit rating of Washington Gas or WGL falls below certain levels or if counterparty exposure to WGL, Washington Gas, WGL Energy Services or WGL Midstream exceeds a certain level (credit-related contingent features) . Due to counterparty exposure levels, at September 30, 2018 , WGL Energy Services posted $11.7 million of collateral related to its derivative liabilities that contained credit-related contingent features. At September 30, 2017 , WGL Energy Services posted $8.6 million of collateral related to these aforementioned derivative liabilities. At both September 30, 2018 and 2017 , WGL was not required to post collateral related to a derivative liability that contained a credit-related contingent feature. At both September 30, 2018 and 2017 , Washington Gas and WGL Midstream were not required to post any collateral related to their respective derivative liabilities that contained credit-related contingent features. The following table shows the aggregate fair value of all derivative instruments with credit-related contingent features that are in a liability position, as well as the maximum amount of collateral that would be required if the most intrusive credit-risk-related contingent features underlying these agreements were triggered on September 30, 2018 and 2017 , respectively. Potential Collateral Requirements for Derivative Liabilities with Credit-Risk-Contingent Features (In millions) WGL Holdings, Inc. Washington Gas September 30, 2018 Derivative liabilities with credit-risk-contingent features $ 5.7 $ 0.4 Maximum potential collateral requirements 0.7 0.4 September 30, 2017 Derivative liabilities with credit-risk-contingent features $ 25.0 $ 2.8 Maximum potential collateral requirements 21.9 2.8 We do not enter into derivative contracts for speculative purposes. Concentration of Credit Risk We are exposed to credit risk from derivative instruments with wholesale counterparties, which is represented by the fair value of these instruments at the reporting date. We actively monitor and work to minimize counterparty concentration risk through various practices. At September 30, 2018 , three counterparties each represented over 10% of Washington Gas’ credit exposure to wholesale derivative counterparties for a total credit risk of $29.2 million ; four counterparties each represented over 10% of WGL Energy Services’ credit exposure to wholesale counterparties for a total credit risk of $1.1 million ; and two counterparties represented over 10% of WGL Midstream’s credit exposure to wholesale counterparties for a total credit risk of $12.3 million . WEATHER-RELATED INSTRUMENTS WGL Energy Services utilizes weather-related instruments for managing the financial effects of weather risks. These instruments cover a portion of WGL Energy Services’ estimated revenue or energy-related cost exposure to variations in heating or cooling degree days. These contracts provide for payment to WGL Energy Services of a fixed-dollar amount for every degree day over or under specific levels during the calculation period depending upon the type of contract executed. During the years ended September 30, 2018 , 2017 and 2016 , WGL Energy Services recorded pre-tax gains of $3.2 million , $1.4 million and $1.7 million , respectively, related to these instruments included in "Non-utility cost of energy related sales" in the accompanying consolidated statements of income. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Recurring Basis We measure the fair value of our financial assets and liabilities using a combination of the income and market approaches in accordance with ASC Topic 820. These financial assets and liabilities primarily consist of derivatives recorded on our balance sheet under ASC Topic 815 and short-term investments, commercial paper and long-term debt outstanding required to be disclosed at fair value. Under ASC Topic 820, fair value is defined as the exit price, representing the amount that would be received in the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To value our financial instruments, we use market data or assumptions that market participants would use, including assumptions about credit risk (both our own credit risk and the counterparty’s credit risk) and the risks inherent in the inputs to valuation. We enter into derivative contracts in the futures and over-the-counter (OTC) wholesale and retail markets. These markets are the principal markets for the respective wholesale and retail contracts. Our relevant market participants are our existing counterparties and others who have participated in energy transactions at our delivery points. These participants have access to the same market data as WGL. Valuations are generally based on pricing service data or indicative broker quotes depending on the market location. We measure the net credit exposure at the counterparty level where the right to set-off exists. The net exposure is determined using the mark-to-market exposure adjusted for collateral, letters of credit and parent guarantees. We use published default rates from Standard & Poor’s Ratings Services and Moody’s Investors Service as inputs for determining credit adjustments. ASC Topic 820 establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three levels of the fair value hierarchy under ASC Topic 820 are described below: Level 1. Level 1 of the fair value hierarchy consists of assets or liabilities that are valued using observable inputs based upon unadjusted quoted prices in active markets for identical assets or liabilities at the reporting date. WGL did not have any Level 1 derivatives at September 30, 2018 and 2017 . Level 2. Level 2 of the fair value hierarchy consists of assets or liabilities that are valued using directly or indirectly observable inputs either corroborated with market data or based on exchange traded market data. Level 2 includes fair values based on industry-standard valuation techniques that consider various assumptions: (i) quoted forward prices, including the use of mid-market pricing within a bid/ask spread; (ii) discount rates; (iii) implied volatility and (iv) other economic factors. Substantially all of these assumptions are observable throughout the full term of the instrument, can be derived from observable data or are supported by observable levels at which transactions are executed in the relevant market. At September 30, 2018 and 2017 , Level 2 financial assets and liabilities included energy-related physical and financial derivative transactions such as forward, option and other contracts for deliveries at active market locations, as well as our interest rate swaps. Level 3. Level 3 of the fair value hierarchy consists of assets or liabilities that are valued using significant unobservable inputs at the reporting date. These unobservable assumptions reflect our assumptions about estimates that market participants would use in pricing the asset or liability, including natural gas basis prices, annualized volatilities of natural gas prices, and electricity congestion prices. A significant change to any one of these inputs in isolation could result in a significant upward or downward fluctuation in the fair value measurement. These inputs may be used with industry standard valuation methodologies that result in our best estimate of fair value for the assets or liabilities at the reporting date. Our Risk Analysis and Mitigation (RA&M) Group determines the valuation policies and procedures. The RA&M Group reports to WGL’s Chief Financial Officer. In accordance with WGL’s valuation policy, we may utilize a variety of valuation methodologies to determine the fair value of Level 3 derivative contracts, including internally developed valuation inputs and pricing models. The prices used in our valuations are corroborated using multiple pricing sources, and we periodically conduct assessments to determine whether each valuation model is appropriate for its intended purpose. The RA&M Group also evaluates changes in fair value measurements on a daily basis. At September 30, 2018 and 2017 , Level 3 derivative assets and liabilities included: (i) physical contracts valued at illiquid market locations with no observable market data; (ii) long-dated positions where observable pricing is not available over the majority of the life of the contract; (iii) contracts valued using historical spot price volatility assumptions and (iv) valuations using indicative broker quotes for inactive market locations. The following tables set forth financial instruments recorded at fair value as of September 30, 2018 and 2017 , respectively. A financial instrument’s classification within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy. WGL Holdings, Inc. Fair Value Measurements Under the Fair Value Hierarchy (In millions) Level 1 Level 2 Level 3 Total At September 30, 2018 Assets Natural gas related derivatives $ — $ 26.7 $ 53.6 $ 80.3 Electricity related derivatives — 4.4 9.6 14.0 Total Assets $ — $ 31.1 $ 63.2 $ 94.3 Liabilities Natural gas related derivatives $ — $ (30.6 ) $ (147.8 ) $ (178.4 ) Electricity related derivatives — (0.1 ) (24.5 ) (24.6 ) Total Liabilities $ — $ (30.7 ) $ (172.3 ) $ (203.0 ) At September 30, 2017 Assets Natural gas related derivatives $ — $ 18.4 $ 52.8 $ 71.2 Electricity related derivatives — 0.1 15.5 15.6 Interest rate derivatives — 9.8 — 9.8 Total Assets $ — $ 28.3 $ 68.3 $ 96.6 Liabilities Natural gas related derivatives $ — $ (15.5 ) $ (167.4 ) $ (182.9 ) Electricity related derivatives — (4.1 ) (21.7 ) (25.8 ) Interest rate derivatives — (8.8 ) — (8.8 ) Total Liabilities $ — $ (28.4 ) $ (189.1 ) $ (217.5 ) Washington Gas Light Company Fair Value Measurements Under the Fair Value Hierarchy (In millions) Level 1 Level 2 Level 3 Total At September 30, 2018 Assets Natural gas related derivatives $ — $ 3.9 $ 23.6 $ 27.5 Total Assets $ — $ 3.9 $ 23.6 $ 27.5 Liabilities Natural gas related derivatives $ — $ (5.5 ) $ (117.7 ) $ (123.2 ) Total Liabilities $ — $ (5.5 ) $ (117.7 ) $ (123.2 ) At September 30, 2017 Assets Natural gas related derivatives $ — $ 7.0 $ 17.0 $ 24.0 Total Assets $ — $ 7.0 $ 17.0 $ 24.0 Liabilities Natural gas related derivatives $ — $ (5.7 ) $ (139.6 ) $ (145.3 ) Total Liabilities $ — $ (5.7 ) $ (139.6 ) $ (145.3 ) The following table includes quantitative information about the significant unobservable inputs used in the fair value measurement of our Level 3 financial instruments and the respective fair values of the net derivative asset and liability positions, by contract type, as of September 30, 2018 and 2017 . Quantitative Information about Level 3 Fair Value Measurements (In millions) Net Fair Value Valuation Techniques Unobservable Inputs Range WGL Holdings, Inc. Natural gas related derivatives ($90.6) Discounted Cash Flow Natural Gas Basis Price (per dekatherm) ($1.810) - $3.886 ($3.6) Option Model Natural Gas Basis Price (per dekatherm) ($0.985) - $3.710 Annualized Volatility of Spot Market Natural Gas 37.5% - 901.0% Electricity related derivatives ($14.9) Discounted Cash Flow Electricity Congestion Price (per megawatt hour) ($6.257) - $64.650 Washington Gas Light Company Natural gas related derivatives ($94.1) Discounted Cash Flow Natural Gas Basis Price (per dekatherm) ($1.003) - $3.886 Net Fair Value Natural gas related derivatives ($112.4) Discounted Cash Flow Natural Gas Basis Price (per dekatherm) ($2.095) - $2.805 ($2.2) Option Model Natural Gas Basis Price (per dekatherm) ($2.095) - $2.358 Annualized Volatility of Spot Market Natural Gas 28.7% - 566.8% Electricity related derivatives ($6.2) Discounted Cash Flow Electricity Congestion Price (per megawatt hour) ($2.736) - $56.5 Washington Gas Light Company Natural gas related derivatives ($122.6) Discounted Cash Flow Natural Gas Basis Price (per dekatherm) ($1.928) - $2.805 The following tables are a summary of the changes in the fair value of our derivative instruments that are measured at net fair value on a recurring basis in accordance with ASC Topic 820 using significant Level 3 inputs during the years ended September 30, 2018 and 2017 , respectively. Reconciliation of Fair Value Measurements Using Significant Level 3 Inputs WGL Holdings Inc. Washington Gas Light Company (In millions) Natural Gas Related Derivatives Electricity Related Derivatives Total Total - Natural Gas Fiscal Year Ended September 30, 2018 Balance at October 1, 2017 $ (114.6 ) $ (6.2 ) $ (120.8 ) $ (122.6 ) Realized and unrealized gains (losses) Recorded to income (22.4 ) (6.0 ) (28.4 ) (4.5 ) Recorded to regulatory assets—gas costs (10.0 ) — (10.0 ) (10.0 ) Transfers into Level 3 (6.8 ) — (6.8 ) (6.9 ) Transfers out of Level 3 9.6 — 9.6 8.9 Purchases — 2.9 2.9 — Settlements 50.0 (5.6 ) 44.4 41.0 Balance at September 30, 2018 $ (94.2 ) $ (14.9 ) $ (109.1 ) $ (94.1 ) Fiscal Year Ended September 30, 2017 Balance at October 1, 2016 $ (264.1 ) $ (9.1 ) $ (273.2 ) $ (251.6 ) Realized and unrealized gains (losses) Recorded to income 62.0 (7.6 ) 54.4 44.2 Recorded to regulatory assets—gas costs 69.7 — 69.7 69.7 Transfers into Level 3 (0.8 ) — (0.8 ) (0.4 ) Transfers out of Level 3 (0.7 ) — (0.7 ) (0.4 ) Purchases — 1.0 1.0 — Settlements 19.3 9.5 28.8 15.9 Balance at September 30, 2017 $ (114.6 ) $ (6.2 ) $ (120.8 ) $ (122.6 ) Transfers between different levels of the fair value hierarchy may occur based on fluctuations in the valuation inputs and on the level of observable inputs used to value the instruments from period to period. It is our policy to show both transfers into and out of the different levels of the fair value hierarchy at the fair value as of the beginning of the period. Transfers out of Level 3 during the fiscal year ended September 30, 2018 and 2017 were due to valuations that experienced an increase in observable market inputs. Transfers into Level 3 during the fiscal year ended September 30, 2018 were due to an increase in unobservable market inputs, primarily pricing points. The table below sets forth the line items on the statements of income to which amounts are recorded for the fiscal years ended September 30, 2018 , 2017 and 2016 , respectively, related to fair value measurements using significant Level 3 inputs. Realized and Unrealized Gains (Losses) Recorded to Income for Level 3 Measurements WGL Holdings, Inc. Washington Gas Light Company (In millions) Natural Gas Related Derivatives Electricity Related Derivatives Total Total - Natural Gas Fiscal Year Ended September 30, 2018 Operating revenues—non-utility $ (17.5 ) $ (17.1 ) $ (34.6 ) $ — Utility cost of gas (4.5 ) — (4.5 ) (4.5 ) Non-utility cost of energy-related sales (0.4 ) 11.1 10.7 — Total $ (22.4 ) $ (6.0 ) $ (28.4 ) $ (4.5 ) Fiscal Year Ended September 30, 2017 Operating revenues—non-utility $ 12.2 $ (17.5 ) $ (5.3 ) $ — Utility cost of gas 44.2 — 44.2 44.2 Non-utility cost of energy-related sales 5.6 9.9 15.5 — Total $ 62.0 $ (7.6 ) $ 54.4 $ 44.2 Fiscal Year Ended September 30, 2016 Operating revenues—non-utility $ 8.2 $ (26.5 ) $ (18.3 ) $ — Utility cost of gas 4.0 — 4.0 4.0 Non-utility cost of energy-related sales 6.1 5.1 11.2 — Total $ 18.3 $ (21.4 ) $ (3.1 ) $ 4.0 Unrealized gains (losses) attributable to derivative assets and liabilities measured using significant Level 3 inputs were recorded as follows for the fiscal years ended September 30, 2018 , 2017 and 2016 , respectively: Unrealized Gains (Losses) Recorded for Level 3 Measurements WGL Holdings, Inc. Washington Gas Light Company (In millions) Natural Gas Related Derivatives Electricity Related Derivatives Total Total - Natural Gas Fiscal Year Ended September 30, 2018 Recorded to income Operating revenues—non-utility $ (14.6 ) $ (20.9 ) $ (35.5 ) $ — Utility cost of gas 2.3 — 2.3 2.3 Non-utility cost of energy-related sales 4.1 15.7 19.8 — Recorded to regulatory assets—gas costs 0.2 — 0.2 0.2 Total $ (8.0 ) $ (5.2 ) $ (13.2 ) $ 2.5 Fiscal Year Ended September 30, 2017 Recorded to income Operating revenues—non-utility $ 12.6 $ 0.8 $ 13.4 $ — Utility cost of gas 31.0 — 31.0 31.0 Non-utility cost of energy-related sales (0.4 ) 9.4 9.0 — Recorded to regulatory assets—gas costs 51.0 — 51.0 51.0 Total $ 94.2 $ 10.2 $ 104.4 $ 82.0 Fiscal Year Ended September 30, 2016 Recorded to income Operating revenues—non-utility $ 9.9 $ (2.3 ) $ 7.6 $ — Utility cost of gas 0.3 — 0.3 0.3 Non-utility cost of energy-related sales (0.4 ) 13.2 12.8 — Recorded to regulatory assets—gas costs (2.6 ) — (2.6 ) (2.6 ) Total $ 7.2 $ 10.9 $ 18.1 $ (2.3 ) The following tables presents the carrying amounts and estimated fair values of our financial instruments at September 30, 2018 and 2017 . WGL Holdings, Inc. Fair Value of Financial Instruments September 30, 2018 September 30, 2017 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value Money market funds (a) $ 117.9 $ 117.9 $ 11.8 $ 11.8 Commercial paper (b) $ 587.5 $ 585.7 $ 505.0 $ 505.0 Project financing (b) $ 82.2 $ 82.2 $ 54.8 $ 54.8 Long-term debt (c) $ 1,879.9 $ 1,912.8 $ 1,430.9 $ 1,577.3 Washington Gas Light Company Fair Value of Financial Instruments September 30, 2018 September 30, 2017 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value Money market funds (a) $ 67.3 $ 67.3 $ 4.8 $ 4.8 Commercial paper (b) $ 95.0 $ 95.0 $ 123.0 $ 123.0 Project financing (b) $ 68.5 $ 68.5 $ 43.8 $ 43.8 Long-term debt (c) $ 1,084.9 $ 1,120.2 $ 1,134.5 $ 1,271.0 (a) The balance as of September 30, 2018 includes $52.9 million and $2.3 million money market funds located in Cash and Cash equivalent for WGL and Washington Gas, respectively ,and $20.2 million rabbi trust investments located in "Current Assets-Other", and $44.8 million rabbi trust investments located in "Deferred Charges and Other Assets-Other" of the accompanying balance sheets for both WGL and Washington Gas . The balance as of September 2017 is located in Cash and Cash Equivalent. The amounts in cash and cash equivalent may be offset by outstanding checks. (b) Balance is located in notes payable in the accompanying balance sheets. (c) Includes adjustments for current maturities and unamortized discounts, as applicable. Our money market funds are Level 1 valuations and their carrying amount approximates fair value. Other short-term investments are primarily overnight investment accounts; their carrying amount approximates fair value based on Level 2 inputs. The maturity of our commercial paper outstanding at both September 30, 2018 and 2017 is under 30 days. Due to the short term nature of these notes, the carrying cost of our commercial paper approximates fair value using Level 2 inputs. Due to the nature of our project financing arrangements, the carrying cost approximates fair value using Level 2 inputs. Neither WGL’s nor Washington Gas’ long-term debt is actively traded. The fair value of long-term debt was estimated based on valuation techniques when observable market data is not available. Our long-term debt fair value measurement is classified as Level 3. Non Recurring Basis During the second quarter of fiscal year 2018, WGL Midstream recorded an other than temporary impairment charge of $ 34.0 million to its equity method investment in Constitution based on the estimated fair value of the investment of $ 4.0 million . WGL Midstream utilized income and market approaches to determine the fair value of its investment in Constitution, which fall into Level 3 of the fair value hierarchy because of the significant unobservable inputs utilized in these valuation approaches, including consideration of the severity and duration of any decline in fair value of our investment in the project. Our key inputs included, but were not limited to, significant management judgments and estimates, including projections of the timing and amount of the project’s cash flows, determination of a discount rate for the income approach, market multipliers, probability weighting of potential outcomes of legal and regulatory proceedings, and weighting of the valuations produced by the income and market approaches. For more information, see Note 16 - Other Investments of the Notes to Consolidated Financial Statements. Additionally, Washington Gas recorded a $ 38.0 million impairment to Property, Plant and Equipment in connection with an agreement not to seek recovery of certain costs incurred under the Formal Case 1027 mechanical coupling program. |
Operating Segment Reporting
Operating Segment Reporting | 12 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Operating Segment Reporting | OPERATING SEGMENT REPORTING We have four reportable operating segments: regulated utility, retail energy-marketing, commercial energy systems and midstream energy services. The division of these segments into separate revenue generating components is based upon regulation, products and services. Our chief operating decision maker is our Chief Executive Officer and we evaluate segment performance based on Earnings Before Interest and Taxes (EBIT). EBIT is defined as earnings before interest and taxes net of amounts attributable to non-controlling interests. Items we do not include in EBIT are interest expense, intercompany financing activity, dividends on Washington Gas preferred stock, and income taxes. EBIT includes transactions between reportable segments. We also evaluate our operating segments based on other relevant factors, such as penetration into their respective markets and return on equity. Our four segments are summarized below. • Regulated Utility – The regulated utility segment is our core business. It consists of Washington Gas and Hampshire. Washington Gas provides regulated gas distribution services (including the sale and delivery of natural gas) to end use customers and natural gas transportation services to an unaffiliated natural gas distribution company in West Virginia under a FERC approved interstate transportation service operating agreement. Hampshire provides regulated interstate natural gas storage services to Washington Gas under a FERC approved interstate storage service tariff. • Retail Energy-Marketing – The retail energy-marketing segment consists of WGL Energy Services, which sells natural gas and electricity directly to retail customers in competition with regulated utilities and unregulated gas and electricity marketers. • Commercial Energy Systems – The commercial energy systems segment consists of WGL Energy Systems which provides clean and energy efficient solutions including commercial solar, energy efficiency and combined heat and power projects and other distributed generation solutions to government and commercial clients. In addition, this segment comprises the operations of WGSW, a holding company formed to invest in alternative energy assets. • Midstream Energy Services – The midstream energy services segment consists of WGL Midstream, which specializes in the investment, management, development and optimization of natural gas storage and transportation midstream infrastructure projects. Administrative and business development activity costs associated with WGL and Washington Gas Resources and activities and transactions that are not significant enough on a stand-alone basis to warrant treatment as an operating segment, and that do not fit into one of our four operating segments, are aggregated as “Other Activities” in the Operating Segment Financial Information presented below. Results for other activities primarily relate to external costs associated with the merger with AltaGas. The following tables present operating segment information for the fiscal years ended September 30, 2018 , 2017 and 2016 . Operating Segment Financial Information (In thousands) Operating Revenues (a) Depreciation and Amortization Equity in Earnings of Unconsolidated Affiliates EBIT Total Assets Capital Expenditures Equity Method Investments Fiscal Year Ended September 30, 2018 Regulated utility $ 1,248,063 $ 136,905 $ — $ 7,922 $ 5,178,937 $ 396,521 $ — Retail energy-marketing 1,009,698 1,084 — 31,491 420,171 386 — Commercial energy systems (b) 79,809 24,510 — 34,878 1,014,612 119,499 — Midstream energy services 40,551 17 (5,791 ) 29,422 1,038,380 — 769,998 Other activities — — — (40,000 ) 478,437 — — Eliminations (c) (36,356 ) 60 — (4,369 ) (882,450 ) — — Total consolidated $ 2,341,765 $ 162,576 $ (5,791 ) $ 59,344 $ 7,248,087 $ 516,406 $ 769,998 Fiscal Year Ended September 30, 2017 Regulated utility $ 1,166,968 $ 131,231 $ — $ 266,307 $ 4,984,121 $ 408,308 $ — Retail energy-marketing 1,107,151 1,141 — 53,195 513,415 614 — Commercial energy systems (b) 95,178 21,690 7,303 40,834 1,031,921 107,552 9,578 Midstream energy services 31,339 25 12,913 37,689 699,560 60 384,623 Other activities — — — (19,865 ) 409,938 — — Eliminations (c) (45,912 ) 51 — 965 (1,012,946 ) — — Total consolidated $ 2,354,724 $ 154,138 $ 20,216 $ 379,125 $ 6,626,009 $ 516,534 $ 394,201 Fiscal Year Ended September 30, 2016 Regulated utility $ 1,070,904 $ 116,129 $ — $ 228,219 $ 4,636,954 $ 393,501 $ — Retail energy-marketing 1,238,480 1,154 — 64,968 486,778 8,104 — Commercial energy systems 89,072 15,201 7,620 21,992 885,734 128,780 66,100 Midstream energy services 6,619 107 6,186 7,807 485,099 — 237,391 Other activities — — — (3,184 ) 273,738 — — Eliminations (c) (55,516 ) (25 ) — (504 ) (718,853 ) — — Total consolidated $ 2,349,559 $ 132,566 $ 13,806 $ 319,298 $ 6,049,450 $ 530,385 $ 303,491 (a) Operating revenue amounts in the “Eliminations” row represent total intersegment revenues associated with sales from the regulated utility segment to the retail energy-marketing segment. Midstream Energy Services’ cost of energy related sales is netted with its gross revenues. (b) As of August 2016, Commercial energy systems' operating revenues include revenues from non-controlling interest. Commercial energy systems' EBIT is adjusted for the effects of non-controlling interest. (c) Intersegment eliminations include any mark-to market valuations associated with trading activities between WGL Midstream and WGL Energy Services, intercompany loans and a timing difference between Commercial Energy Systems’ recognition of revenue for the sale of Renewable Energy Credits (RECs) to Retail Energy-Marketing and Retail Energy-Marketing’s recognition of the associated expense. Retail Energy-Marketing has recorded a portion of the REC’s purchased as inventory to be used in future periods at which time they will be expensed. The following table provides a reconciliation from EBIT to net income applicable to common stock. Fiscal Year Ended September 30, (In thousands) 2018 2017 2016 Total consolidated EBIT $ 59,344 $ 379,125 $ 319,298 Interest expense 62,133 74,026 52,310 Income tax expense (benefit) (53,452 ) 111,159 98,074 Dividends on Washington Gas Light Company preferred stock 1,320 1,320 1,320 Net income applicable to common stock $ 49,343 $ 192,620 $ 167,594 |
Other Investments
Other Investments | 12 Months Ended |
Sep. 30, 2018 | |
Other Investments [Abstract] | |
Other Investments | OTHER INVESTMENTS WGL has both solar and pipeline investments and accounts for its interests in legal entities as either a: (i) variable interest entity (VIE) or a (ii) voting interest entity (non-VIE). A VIE is a legal entity with one of the following characteristics: (i) has insufficient at-risk equity to fund its activities without additional subordinated financial support from any other party or parties; (ii) the equity holders of which, as a group, lack the characteristics of a controlling financial interest; or (iii) the entity is structured with non-substantive voting rights. The determination of whether or not to consolidate a VIE under GAAP requires a significant amount of judgment. This includes, but is not limited to, consideration of our contractual relationships with the entity, the legal structure of the entity, the voting power of the equity holders, the obligation of the equity holders to absorb losses of the entity and their rights to receive any expected residual returns. Under the VIE model, we have a controlling financial interest in a VIE (i.e., are the primary beneficiary) and would consolidate the entity when we have current or potential rights that give us the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance combined with a variable interest that gives us the right to receive potentially significant benefits or the obligation to absorb potentially significant losses. When changes occur to the design of an entity, we reconsider whether the entity is a VIE. We also continuously evaluate whether we have a controlling financial interest in a VIE. Under the voting interest model, we consolidate an entity when we have a controlling financial interest by holding directly or indirectly, more than 50% of the voting rights or by exercising control through substantive participating rights. However, we consider substantive rights held by other partners in determining if we hold a controlling financial interest, and in some cases, may not consolidate the entity despite owning more than 50% of the voting rights. We reevaluate whether we have a controlling financial interest in these entities when our voting or substantive participating rights change. Where we do not have a controlling financial interest, we apply the equity method of accounting. We have investments in both consolidated and unconsolidated entities which are described in detail below. The unconsolidated investments are accounted for under the equity method of accounting with profits and losses included in “Equity in earnings of unconsolidated affiliates” in the accompanying Condensed Consolidated Statements of Income, and the unconsolidated investment balances included in “Investments in unconsolidated affiliates” in the accompanying Condensed Consolidated Balance Sheets. Consolidated investments are accounted for under the principles of consolidation with profits and losses included in the appropriate revenues and expenses lines in the accompanying Condensed Consolidated Statements of Income, and the consolidated investment balances are included in the appropriate assets and liabilities lines in the accompanying Condensed Consolidated Balance Sheets. Profits and losses associated with non-controlling interests are included in “Net income (loss) attributable to non-controlling interest” in the accompanying Condensed Consolidated Statements of Income and are recorded to "Non-controlling interest" in the accompanying Condensed Consolidated Balance Sheets. WGL uses the Hypothetical Liquidation at Book Value (HLBV) methodology to determine its earnings or losses for certain equity method investments as well as for the non-controlling interests in consolidated investments when the governing structuring agreement over the equity investment results in different liquidation rights and priorities than what is reflected by the underlying ownership interest percentage. For investments accounted for under the HLBV method, simply applying the percentage ownership interest to GAAP net income in order to determine earnings or losses does not accurately represent the income allocation and cash flow distributions that will ultimately be received by the investors. The HLBV calculation may vary in its complexity depending on the capital structure and the tax considerations for the investments. When applying HLBV, WGL determines the amount that it would receive if an equity investment entity were to liquidate all of its assets at book value (as valued in accordance with GAAP) and distribute that cash to the investors based on the contractually defined liquidation priorities. The change in WGL's claim on the investee's book value at the beginning and end of the reporting period (adjusted for contributions and distributions) is WGL’s share of the earnings or losses from the equity investment for the period. Consolidated Investments Variable Interest Entity Investments - Solar At September 30, 2018 , WGL's subsidiary, WGSW, Inc. was the primary beneficiary of SFGF LLC (SFGF), SFRC, LLC (SFRC), SFGF II, LLC (SFGF II), ASD Solar LP (ASD) and SFEE LLC (SFEE), because of its ability to direct the activities most significant to the economic performance of those entities plus the right to receive potentially significant benefits or the obligation to absorb potentially significant losses. Accordingly, we have consolidated these VIE's. SFGF, SFRC, and SFGF II WGSW, along with its various tax equity partners, formed the tax equity partnerships SFGF, SFRC, and SFGF II to acquire, own, and operate distributed generation solar projects nationwide. WGSW is the managing member of these investments and will provide cash equal to the purchase price of the solar projects less any contributions from the tax-equity partner for projects sold into the partnerships. WGL Energy Systems is the developer of the projects and sells them to the partnerships and is the operations and maintenance provider. Profits and losses are allocated between the partners under the HLBV method of accounting and the portion allocated to the tax equity partner is included in “Net income (loss) attributable to non-controlling interest” on the accompanying Condensed Consolidated Statements of Income and is recorded to "Non-controlling interest" on the accompanying Condensed Consolidated Balance Sheets. As of September 30, 2018 , WGSW has contributed $ 16.8 million , $ 29.0 million and $ 47.4 million to SFGF, SFRC, and SFGF II, respectively. ASD WGSW is the limited partner in ASD, a limited partnership formed to own and operate a portfolio of residential solar projects, primarily rooftop photovoltaic power generation systems. As the limited partner, WGSW provided funding to the partnership through the funding commitment period that ended in January 2014 for a total of $ 72.6 million . Prior to July 10, 2017, ASD was being consolidated by the general partner, Solar Direct LLC (Solar Direct). Solar Direct is a wholly owned subsidiary of American Solar Direct Inc. (ASDI). In June 2017, ASDI filed for Chapter 7 bankruptcy because of financial difficulties. To ensure continuing operations of the partnership and minimal disruptions to the customers, WGSW petitioned the Bankruptcy Court to remove Solar Direct as manager of ASD operations and to approve the appointment of SF ASD, a wholly owned subsidiary of WGL Energy Systems, formed to take over the management and operations of the partnership, as manager of ASD operations. On July 10, 2017, the Bankruptcy Court granted the bankruptcy trustee's emergency motion to assign management rights and control of ASD to SF ASD and WGSW consolidated ASD as a result. SFEE On November 23, 2016, WGSW and a tax equity partner formed SFEE to acquire distributed generation solar projects that were to be developed and sold by a third-party developer or WGL Energy Systems. New projects were to be designed and constructed under long-term power purchase agreements. On November 8, 2017, WGSW terminated the Master Purchase Agreement between SFEE and the third-party developer. The termination triggered a reassessment of the method of accounting for SFEE and, as a result, SFEE is considered a VIE and is consolidated by WGSW. As of September 30, 2018 , WGSW has contributed $ 6.5 million into the tax equity partnership. The following table summarizes the fair value amounts of SFEE’s assets and liabilities, as well as the estimated fair value of the non-controlling interest as of the date of consolidation. Fair Value of SFEE at Date of Consolidation (in millions) Fair Value Property, plant and equipment 10.1 Other assets $ 0.1 Total assets $ 10.2 Net assets $ 10.2 Non-controlling interest $ 0.6 WGSW equity interest $ 9.6 Property, plant and equipment represents commercial solar assets for SFEE stated at cost. This amount was determined to be equal to the fair value provided by a third-party appraisal. Balance Sheet Location of Consolidated Investment The carrying amounts and classification of the consolidated VIEs’ assets and liabilities included in our consolidated balance sheet at September 30, 2018 and September 30, 2017 are as follows: WGL Holdings, Inc. Balance Sheet Location of Consolidated Investments (in millions) September 30, 2018 September 30, 2017 Current assets $ 12.5 $ 4.4 Property, Plant and Equipment 248.8 121.7 Total assets $ 261.3 $ 126.1 Current liabilities 0.9 0.2 Deferred credits 1.7 0.8 Total liabilities $ 2.6 $ 1.0 Unconsolidated Investments Variable Interest Entity Investments-Pipelines Meade In 2014, WGL through its subsidiary WGL Midstream, entered into a limited liability company agreement and formed Meade Pipeline Co LLC (Meade), a Delaware limited liability company, with Transcontinental Gas Pipe Line Company, LLC (Transco) to invest in a regulated pipeline, a segment of Transco's Atlantic Sunrise project, called Central Penn Pipeline (Central Penn). Central Penn is an approximately 185 -mile pipeline originating in Susquehanna County, Pennsylvania and extending to Lancaster County, Pennsylvania that has the capacity to transport and deliver up to approximately 1.7 million dekatherms per day of natural gas. WGL Midstream planned to invest an estimated $ 450 million for a 55% interest in Meade, and WGL Midstream indirectly owns 21% of the pipeline. On October 4, 2018, FERC issued its authorization to place the pipeline into service and Central Penn began operations on October 6, 2018. In August 2018, Meade executed an agreement with Transco to participate in an expansion of the Central Penn Pipeline (Leidy South) with an estimated capital investment of up to $ 50 million by WGL Midstream. Leidy South is expected to add an estimated 580,000 dekatherms per day of natural gas to the capacity of Central Penn through the addition of compression at new and existing stations. Meade will own 40% of the expanded capacity and WGL Midstream will indirectly own 22% of the expanded capacity through its 55% ownership interest in Meade. Leidy South is anticipated to be in-service as early as the fourth quarter of 2021 assuming all necessary regulatory approvals are received in a timely manner. At September 30, 2018 and 2017, WGL Midstream held a $ 447.0 million and $ 146.7 million , equity method investment in Meade, respectively. Although WGL Midstream holds greater than a 50% interest in Meade, Meade is not consolidated by WGL Midstream and WGL Midstream accounts for its investment in Meade under the equity method of accounting. WGL Midstream is not the primary beneficiary of Meade as it does not have the power to direct the activities most significant to the economic performance of Meade. WGL Midstream utilizes HLBV in its application of equity method of accounting for this investment and any profits and losses are included in “Equity in earnings of unconsolidated affiliates” in the accompanying Condensed Consolidated Statements of Income and are added to or subtracted from the carrying amount of WGL’s investment balance. Since inception, WGL Midstream recorded $ 12.5 million of capitalized interest during the construction of Central Penn. The interest was recorded as a basis adjustment and will be amortized over the life of the asset. Our maximum financial exposure to loss because of our involvement with this VIE is equal to WGL Midstream's capital contributions. Non-Variable Investment Entity Investments-Pipelines Mountain Valley Pipeline In March 2015, WGL Midstream acquired a 7% equity interest in Mountain Valley Pipeline, LLC (Mountain Valley). On October 24, 2016, WGL Midstream acquired an additional 3% equity interest in Mountain Valley by assuming all of Vega Midstream MVP LLC's (Vega Energy) interest in the joint venture. WGL Midstream now owns a 10% interest in Mountain Valley. The proposed pipeline to be developed, constructed, owned and operated by Mountain Valley, will transport approximately 2.0 million dekatherms of natural gas per day and connects with EQT Corporation's Equitrans system in Wetzel County, West Virginia to Transcontinental Gas Pipe Line Company LLC's Station 165 in Pittsylvania County, Virginia. At September 30, 2018 and 2017, WGL Midstream held a $ 182.1 million and $ 63.0 million equity method investment in Mountain Valley, respectively. WGL Midstream expects to invest approximately $ 352.0 million in scheduled capital contributions through the in-service date of the pipeline based on its pro rata share of project costs. The equity method is considered appropriate because Mountain Valley is an LLC with specific ownership accounts and ownership between five and fifty percent resulting in WGL Midstream maintaining a more than minor influence over the partnership operating and financing policies. Profits and losses are allocated under the HLBV method of accounting and are included in “Equity in earnings of unconsolidated affiliates” in the accompanying Condensed Consolidated Statements of Income and are added to or subtracted from the carrying amount of WGL’s investment balance. In April 2018, WGL Midstream entered into a separate agreement with Mountain Valley to acquire a 5% equity interest in a lateral project to build an interstate natural gas pipeline (the MVP Southgate project). The proposed pipeline will receive gas from the Mountain Valley Pipeline mainline in Pittsylvania County, Virginia and extend approximately 73 miles south to new delivery points in Rockingham and Alamance counties, North Carolina. The total commitment by WGL Midstream is expected to be approximately $ 17.0 million . Stonewall System WGL Midstream has a 30% equity interest in an entity that owns and operates certain assets known as the Stonewall Gas Gathering System (the Stonewall System). The Stonewall System has the capacity to gather up to 1.4 billion cubic feet of natural gas per day from the Marcellus production region in West Virginia and connects with an interstate pipeline system that serves markets in the mid-Atlantic region. At September 30, 2018 and 2017, WGL Midstream held a $ 137.4 million and $ 136.7 million equity method investment in the Stonewall System, respectively. The equity method is considered appropriate because the Stonewall System is an LLC with specific ownership accounts and ownership between five and fifty percent resulting in WGL Midstream maintaining a more than minor influence over the partnership operating and financing policies. Profits and losses are allocated under the HLBV method of accounting and are included in “Equity in earnings of unconsolidated affiliates” in the accompanying Condensed Consolidated Statements of Income and are added to or subtracted from the carrying amount of WGL’s investment balance. The carrying amount of WGL Midstream's investment in the Stonewall System exceeded the amount of the underlying equity in net assets by $ 10.0 million as of September 30, 2018 , which is being amortized over the life of the assets. Constitution WGL Midstream owns a 10% interest in Constitution. The Constitution pipeline is proposed to transport natural gas from the Marcellus region in northern Pennsylvania to major northeastern markets. Constitution is accounted for under the equity method of accounting; any profits and losses are included in “Equity in earnings of unconsolidated affiliates” in the accompanying Condensed Consolidated Statements of Income and are added to or subtracted from the carrying amount of WGL’s investment balance. The equity method is considered appropriate because Constitution is an LLC with specific ownership accounts and ownership between five and fifty percent resulting in WGL Midstream maintaining a more than minor influence over the partnership operating and financing policies. In December 2014, Constitution received approval from the FERC to construct and operate the proposed pipeline. However, on April 22, 2016, the New York State Department of Environmental Conservation (NYSDEC) denied Constitution’s application for a Section 401 Certification for the pipeline, which is necessary for the construction and operation of the pipeline. In October 2017, Constitution filed a petition for declaratory order requesting FERC to find that, by operation of law, the Section 401 certification requirement for the New York State portion of Constitution’s pipeline project was waived due to the failure by the NYSDEC to act on Constitution’s Section 401 application within a reasonable period of time as required by the express terms of the statute. On January 11, 2018, the FERC denied the petition. On January 16, 2018, Constitution petitioned the U.S. Supreme Court to review the judgment of the Second Circuit Court, asserting that the Second Circuit Court’s decision conflicts with the decisions of the U.S. Supreme Court and federal Courts of Appeals on an important question of federal law. On February 12, 2018, Constitution filed a request for rehearing with FERC, which was denied on July 19, 2018. On April 30, 2018, the U.S. Supreme Court denied Constitution’s petition for writ of certiorari . The project’s sponsors remain committed to the project, and as such, on June 25, 2018, Constitution requested FERC grant a 24-month extension on construction of the pipeline. On September 14, 2018 Constitution filed a petition for review of prior FERC rulings with the DC Court of Appeals. We evaluate our investment in Constitution for other than temporary impairment. Our impairment assessment uses income and market approaches in determining the fair value of our investment in Constitution. Refer to Note 14 - Fair Value Measurements . During the second quarter of fiscal year 2018, we recorded an other than temporary impairment charge of $ 34.0 million to “Equity in earnings of unconsolidated affiliates” and recorded a reversal to “Operation and maintenance” expense of a previously recognized expense of $ 3.0 million in light of the FERC's denial of Constitution's petition on January 11, 2018. We evaluated our remaining investment at September 30, 2018 and determined that there was no additional impairment. There could be additional losses in the value of the investment beyond the impairment charge already taken. However, we believe that recoveries from the sale of the inventories held by Constitution will mostly offset these expenditures. We also continue to incur legal fees associated with the project. At September 30, 2018 and 2017, WGL Midstream held a $ 3.8 million and $ 38.1 million equity method investment in Constitution, respectively. The following tables present summary information about our unconsolidated investments: WGL Holdings, Inc. Balance Sheet Location of Unconsolidated Investments Solar Pipelines (in millions) Non-VIEs (a) VIEs (b) Non-VIEs (c) Total September 30, 2018 Assets Investments in unconsolidated affiliates $ — $ 447.0 $ 323.0 $ 770.0 Total assets $ — $ 447.0 $ 323.0 $ 770.0 September 30, 2017 Assets Investments in unconsolidated affiliates $ 9.6 $ 146.7 $ 237.9 $ 394.2 Total assets $ 9.6 $ 146.7 $ 237.9 $ 394.2 (a)Balance relates to interest held in SFEE on September 30, 2017 (b)Balance relates to equity method investment in Meade. (c)Balance relates to equity method investments in Constitution, Mountain Valley Pipeline and Stonewall System. Equity Method Investment Summarized Financial Information WGL follows the equity method of accounting to recognize its interest in the net assets and net earnings of the pipeline investments on an on-going basis. We present summarized financial information below, aggregated for all of our equity method investments for the periods in which we were invested in the entity. The amounts below represent the aggregate financial position and results of operations of 100 percent of each of WGL's equity method investments. WGL Holdings, Inc. Summarized Financial Statements (in thousands) As of September 30, 2018 2017 Current assets $ 1,298,488 $ 236,622 Non-current assets 3,902,251 1,646,752 Total assets $ 5,200,739 $ 1,883,374 Current liabilities $ 730,720 $ 63,068 Non-current liabilities 6,445 166 Total liabilities $ 737,165 $ 63,234 For the fiscal year ended September 30, 2018 2017 2016 Operating revenues $ 91,778 $ 85,999 $ 64,412 Operating income 64,160 47,580 26,580 Net income 157,760 64,685 33,161 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS Related Party Transactions with AltaGas LTD. As a subsidiary of AltaGas and effective with the Merger Close on July 6, 2018, WGL is charged a proportionate share of corporate governance and other shared services costs from AltaGas, primarily related to human resources, employee benefits, finance, legal, accounting, tax, information technology services, and office services. AltaGas charges Washington Gas for the total shared service costs and Washington Gas in turn allocates a portion of the costs to WGL’s subsidiaries. WGL’s consolidated shared service costs are recorded as “Operations and maintenance” expense, with an offsetting payable to AltaGas in “Current liabilities- other” on WGL’s consolidated balance sheet. As of September 30, 2018, the total liability was $ 5.1 million reflecting WGL’s unpaid shared service cost to AltaGas. The total shared service expense for the year ended September 30, 2018 was $ 5.1 million . Washington Gas reflects a liability in Washington Gas’ balance sheet in “Payables to associated companies” for the same shared service costs from AltaGas. In addition, Washington Gas records a receivable from WGL’s other subsidiaries related to the shared service costs allocated to WGL’s subsidiaries in “Receivables from associated companies” on Washington Gas’ balance sheet. The total receivable was $ 1.1 million as of September 30, 2018. The total shared service expense for the year ended September 30, 2018 was $ 4.0 million and was recorded in “Operations and maintenance” expense in Washington Gas’ statements of income. We did not have related transactions with AltaGas during the fiscal year 2017. Related Party Transactions with Other Affiliates WGL and its subsidiaries engage in inter-company transactions in the ordinary course of business. Inter-company transactions and balances have been eliminated from the consolidated financial statements of WGL, except as described below. Washington Gas provides accounting, treasury, legal and other administrative and general support to affiliates, and files consolidated tax returns that include affiliated taxable transactions. Washington Gas bills its affiliates in accordance with regulatory requirements for the actual cost of providing these services, which approximates their market value. To the extent such billings are outstanding, they are reflected in “Receivables from associated companies” on Washington Gas’ balance sheets. Washington Gas assigns or allocates these costs directly to its affiliates and, therefore, does not recognize revenues or expenses associated with providing these services. Washington Gas believes that allocations based on broad measures of business activity are appropriate for allocating expenses resulting from common services. Affiliate entities are allocated a portion of common services based on a formula driven by appropriate indicators of activity, as approved by management. In connection with billing for unregulated third-party marketers, including WGL Energy Services and with other miscellaneous billing processes, Washington Gas collects cash on behalf of affiliates and transfers the cash in a reasonable time period. Cash collected by Washington Gas on behalf of its affiliates but not yet transferred is recorded in “Payables to associated companies” on Washington Gas’ balance sheets. Washington Gas previously obtained third-party project financing on behalf of the federal government to provide funds during the construction of certain energy management services projects entered into under Washington Gas' area-wide contract. In December 2016, WGL Energy Systems entered into an agreement to obtain third-party financing and receive funds directly from the third-party lender during the construction period associated with the related energy management service projects. Washington Gas will continue to record a receivable in "Unbilled revenues" representing the government’s obligation and will record an inter-company payable to WGL Energy Systems in "Notes payable and project financing" for the construction work performed for the same amount. Refer to Note 4- Short Term Debt of the Notes to Consolidated Financial Statements for further discussions of the project financing. The following table presents the receivables and payables from associated companies as of September 30, 2018 and September 30, 2017. Washington Gas Light Company Receivables / Payables from Associated Companies (In millions) September 30, 2018 September 30, 2017 Receivables from associated companies (a) $ 1.1 $ 32.4 Payables to associated companies (a) $ 16.4 $ 94.8 (a) The receivable and payable do not include the transactions related to shared service cost billed from AltaGas. Washington Gas provides gas balancing services related to storage, injections, withdrawals and deliveries to all energy marketers participating in the sale of natural gas on an unregulated basis through the customer choice programs that operate in its service territory. These balancing services include the sale of natural gas supply commodities related to various peaking arrangements contractually supplied to Washington Gas and then partially allocated and assigned by Washington Gas to the energy marketers, including WGL Energy Services. Washington Gas records revenues for these balancing services pursuant to tariffs approved by the appropriate regulatory bodies. These related party amounts related to balancing services provided to WGL Energy Services have been eliminated in the consolidated financial statements of WGL. The following table shows the amounts Washington Gas charged WGL Energy Services for balancing services. Washington Gas - Gas Balancing Service Charges Years Ended September 30, (In millions) 2018 2017 2016 Gas balancing service charge $ 18.5 $ 23.6 $ 26.8 As a result of these balancing services, an imbalance is created for volumes of natural gas received by Washington Gas that are not equal to the volumes of natural gas delivered to customers of the energy marketers. WGL Energy Services recognized receivables from Washington Gas of $1.5 million and a $1.4 million at September 30, 2018 and 2017 , respectively, related to an imbalance in gas volumes. Due to regulatory treatment, these receivables are not eliminated in the consolidated financial statements of WGL. Refer to Note 1— Accounting Policies of the Notes to Consolidated Financial Statements for further discussion of these imbalance transactions. Washington Gas participates in a purchase of receivables (POR) program as approved by the PSC of MD, whereby it purchases receivables from participating energy marketers at approved discount rates. In addition, WGL Energy Services participates in POR programs with certain Maryland, District of Columbia and Pennsylvania utilities, whereby it sells its receivables to various utilities, including Washington Gas, at approved discount rates. The receivables purchased by Washington Gas are included in “Accounts receivable” in the accompanying balance sheet. Any activity between Washington Gas and WGL Energy Services related to the POR program has been eliminated in the accompanying financial statements for WGL. At September 30, 2018 and 2017 , Washington Gas had balances of $2.8 million and $3.2 million , respectively, of purchased receivables from WGL Energy Services. Additionally, Washington Gas expects to implement a program in the District of Columbia to participate in a POR program in January 2019. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Sep. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following tables show the changes in accumulated other comprehensive income (loss) for WGL and Washington Gas by component for the fiscal years ended September 30, 2018 and 2017 . WGL Holdings, Inc. Changes in Accumulated Other Comprehensive Loss by Component September 30, (In thousands) 2018 2017 Beginning Balance $ (5,997 ) $ (38,539 ) Qualified cash flow hedging instruments (a) (6,341 ) 49,610 Change in prior service cost (b) (675 ) (767 ) Amortization of actuarial gain (b) 6,324 6,232 Current-period other comprehensive income (loss) (692 ) 55,075 Income tax expense related to other comprehensive income 1,523 22,533 Ending Balance $ (8,212 ) $ (5,997 ) (a) Cash flow hedging instruments represent interest rate swap agreements related to debt issuances. Refer to Note 13—Derivative and Weather-related Instruments for further discussion of the interest rate swap agreements. (b) These accumulated other comprehensive income (loss) components are included in the computation of net periodic benefit cost. Refer to Note 9—Pension and other post-retirement benefit plans for additional details. Washington Gas Light Company Changes in Accumulated Other Comprehensive Loss by Component September 30, (In thousands) 2018 2017 Beginning Balance $ (4,522 ) $ (7,830 ) Change in prior service cost (a) (675 ) (767 ) Amortization of actuarial gain (loss) (a) 6,324 6,232 Current-period other comprehensive income 5,649 5,465 Income tax expense benefit related to other comprehensive income 2,957 2,157 Ending Balance $ (1,830 ) $ (4,522 ) (a) These accumulated other comprehensive income (loss) components are included in the computation of net periodic benefit cost. Refer to Note 9—Pension and other post-retirement benefit plans for additional details. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Sep. 30, 2018 | |
Washington Gas Light Company | |
Supplemental Cash Flow Information | Washington Gas For the year ended September 30, 2018 2017 2016 (In thousands) CHANGES IN OPERATING ASSETS AND LIABILITIES Accounts receivable, unbilled revenues and receivables from associated companies—net $ 16,578 $ (125,758 ) $ (78,304 ) Gas costs and other regulatory assets/liabilities—net 27,994 3,430 (31,075 ) Storage gas (8,626 ) (10,280 ) 12,016 Prepaid taxes 5,618 (6,524 ) 13,539 Accounts payable and other accrued liabilities, including payables to associated companies (54,918 ) 46,995 31,408 Customer deposits and advance payments 19,464 (16,742 ) (7,514 ) Accrued taxes 14,619 (4,831 ) 5,980 Other current assets (14,605 ) (4,123 ) 3,912 Other current liabilities 154 280 (1,318 ) Deferred gas costs—net (8,306 ) 2,467 (5,104 ) Deferred assets—other (5,895 ) (15,088 ) (22,057 ) Deferred liabilities—other (21,499 ) (4,667 ) (56,865 ) Pension and other post-retirement benefits (14,521 ) (9,806 ) (10,251 ) Other—net 893 3,409 2,107 Changes in operating assets and liabilities $ (43,050 ) $ (141,238 ) $ (143,526 ) SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION Income taxes paid (refunded)—net $ (2,983 ) $ — $ (19,004 ) Interest paid $ 57,036 $ 50,539 $ 40,972 SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING ACTIVITIES: Extinguishment of project debt financing $ (28,312 ) $ (27,927 ) $ — Capital expenditure accruals included in accounts payable and other accrued liabilities $ 53,367 $ 37,049 $ 43,687 The following tables provides a reconciliation of cash, cash equivalents, and restricted cash reported within WGL’s consolidated balance sheets and Washington Gas’ balance sheets that sums to the total of such amounts shown on the statements of cash flows. WGL HOLDINGS INC. (in thousands) Cash and cash equivalents $ 57,969 Restricted cash included in Current Assets-Other $ 20,207 Restricted cash included in Deferred Charges and Other Assets-Other $ 44,775 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 122,951 WASHINGTON GAS (in thousands) Cash and cash equivalents $ 1 Restricted cash included in Current assets-Other $ 20,207 Restricted cash included in Deferred Charges and Other Assets-Other $ 44,775 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 64,983 Restricted cash included in "Current assets—Other" and "Deferred charges and other assets—Other" on the balance sheets represents amount of investment in rabbi trusts to fund deferred compensation, pension and other post-retirement benefits for certain management personnel and directors. The rabbi trusts were funded pursuant to the agreement of merger with AltaGas, which was closed on July 6, 2018. The funds in the rabbi trusts can only be used to pay for plan participant benefits and other plan expenses such as investment fees or trustee fees. The funds are currently invested in money market funds. We did not have any restricted cash at end of September 30, 2017. Refer to Note 9- Pension and Other Post-Retirement Benefit Plans for further discussion of rabbi trusts. |
Merger with AltaGas Ltd.
Merger with AltaGas Ltd. | 12 Months Ended |
Sep. 30, 2018 | |
Merger with AltaGas Ltd. [Abstract] | |
Merger with Altagas Ltd. | MERGER WITH ALTAGAS LTD. On January 25, 2017 , WGL entered into an agreement and plan of merger (Merger Agreement) to combine with AltaGas in an all cash transaction. The merger was consummated on July 6, 2018 . The Merger Agreement provided for the merger of the Merger Sub, a newly formed indirect wholly owned subsidiary of AltaGas with and into WGL, whereby WGL became an indirect wholly owned subsidiary of AltaGas. Upon consummation of the merger, each share of WGL common stock issued and outstanding immediately prior to the closing was converted automatically into the right to receive $ 88.25 (Merger Consideration) in cash per share, without interest, less any applicable withholding taxes and ceased to be outstanding. Shares of WGL common stock held by WGL, AltaGas, the Merger Sub or any subsidiaries were not entitled to receive the Merger Consideration. Each share of the Merger Sub's issued and outstanding common stock at the time of the consummation of the merger was converted into one share of WGL common stock for a total of 100 WGL post-Merger shares owned by Wrangler 1 LLC, an indirect wholly owned subsidiary of AltaGas (Wrangler 1). As a result of the Merger, WGL's common stock was delisted from the New York Stock Exchange. In connection with the Merger, WGL established Wrangler SPE LLC, the SPE for the purposes of owning the common stock of Washington Gas in a bankruptcy remote entity. The SPE is a wholly owned subsidiary of WGL. Following the consummation of the merger, all of Washington Gas’ outstanding shares of common stock are now owned by the SPE. The merger had no effect on the Washington Gas preferred stock, which continues to be outstanding. Merger Related Costs The following table summarizes pre-tax merger commitments, legal expense, acceleration of stock-based compensation, and other merger related costs (collectively referred to as merger related costs) that we recorded in connection with the Merger. For the fiscal year ended September 30, 2018, both WGL and Washington Gas recorded merger related cost of $ 13.5 million in "Other income (expense)—net" and $ 223.2 million and $ 186.7 million , respectively, in “Operation and maintenance” in WGL's Consolidated Statements of Income and Washington Gas' Statements of Income. WGL Holdings, Inc. MERGER RELATED COSTS (in millions) Costs Description Amount Merger commitments (1) $ 139.6 Property plant & equipment impairment (2) 38.0 Finance and legal advisory costs 29.7 Key employee retention payments 11.6 Acceleration of stock-based compensation (3) 8.4 Severance costs (4) 6.7 Other 2.7 Total $ 236.7 ` (1) See the Merger Commitments table below for details of merger related commitments. (2) Net property, plant and equipment impairment recorded in connection with an agreement not to seek recovery of certain costs incurred under the Formal Case 1027 mechanical coupling program. (3) See Note 10-Stock-Based Compensation for further discussion of the acceleration of incentive compensation. (4) Severance costs are related to the retirement of senior executives following the merger. Merger Commitments Approval of the merger across all jurisdictions was conditioned upon AltaGas and WGL agreeing to certain financial commitments including: customer bill credits, funding for low-income weatherization and energy efficiency initiatives, public safety programs, energy educational programs, gas expansion fund contributions, workplace development initiatives, charitable contributions, and other required commitments. The commitments will be funded by AltaGas within various timeframes from 30 days to 10 years after the merger close. In addition, the commitments related to Maryland are subject to a Most Favored Nation (MFN) provision that may change the amount or nature of the commitments. The following table lists total commitments, the amounts paid, and future expected payments as of September 30, 2018. WGL Holdings, Inc. MERGER COMMITMENTS (in millions) Expected Future Payments Commitment Description Total Commitment Amount Amount paid in FY 2018 2019 2020 2021 2022 2023 2024-2027 Customer bill credits $ 56.8 $ 56.8 $ — $ — $ — $ — $ — $ — Gas expansion fund contributions 34.2 — 34.2 — Energy customer or education programs 22.8 22.8 — — — — — — Charitable contributions 13.5 0.4 1.5 1.5 1.5 1.5 1.5 5.6 Work place development initiatives 7.4 — 3.7 3.7 — — — — Low-income weatherization and energy efficiency initiatives 4.2 — 2.1 2.1 — — — — Public safety programs 0.7 — 0.7 — — — — — Total merger commitments $ 139.6 $ 80.0 $ 42.2 $ 7.3 $ 1.5 $ 1.5 $ 1.5 $ 5.6 The following additional commitments by Washington Gas will have an impact on our consolidated financial statements when the transactions are incurred in the future: 1) Hiring of three damage prevention trainers in each jurisdiction for a total of $ 2.4 million over 5 years; 2) Investment of $ 70.0 million over a 10-year period to further extend natural gas service to areas within Washington Gas's service territory, which will be incorporated into Washington Gas's ongoing capital plan; 3) Spending $ 8.0 million on leak mitigation and reducing leak backlogs within 3 years after the Merger close; and 4) Development of 15MW of either electric grid energy storage or Tier 1 renewable resources within 5 years. In addition, there are a number of operational commitments that will have an impact on the ongoing business of Washington Gas, including reductions of leak backlogs, conducting a root cause analysis related to customer service, increasing supplier diversity, achieving synergy savings benefits, developing protocols for moving meters from inside to outside customers’ premises, as well as reporting and tracking related to all the commitments. Other Merger Related Items Pursuant to the Merger agreement, Washington Gas contributed $ 66.7 million that was funded by AltaGas to rabbi trusts formed to fully satisfy certain outstanding employee benefit obligations immediately prior to the Merger close. See Note 9—Pension and Other Post-Retirement Benefit Plans for further discussion of the rabbi trusts. |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Sep. 30, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | SUPPLEMENTARY FINANCIAL INFORMATION (Unaudited) QUARTERLY FINANCIAL DATA All adjustments necessary for a fair presentation have been included in the quarterly information provided below. Due to the seasonal nature of our business, we report substantial variations in operations on a quarterly basis. Quarter Ended (In thousands) December 31 March 31 (a) June 30 September 30 (b) Fiscal Year 2018 (a)(b) WGL Holdings, Inc. Operating revenues $ 652,440 $ 886,451 $ 423,465 $ 379,409 Operating income $ 116,567 $ 194,173 $ (3,068 ) $ (257,011 ) Net income $ 132,592 $ 131,508 $ (55,327 ) $ (187,627 ) Net income applicable to common stock $ 138,040 $ 135,550 $ (49,006 ) $ (175,241 ) Washington Gas Light Company Operating revenues $ 377,470 $ 523,040 $ 199,512 $ 139,041 Operating income (loss) $ 99,545 $ 151,799 $ (3,828 ) $ (222,641 ) Net income (loss) $ 57,926 $ 108,084 $ (11,499 ) $ (181,153 ) Net income (loss) applicable to common stock $ 57,596 $ 107,754 $ (11,829 ) $ (181,483 ) Fiscal Year 2017 (c) WGL Holdings, Inc. Operating revenues $ 609,487 $ 841,750 $ 474,364 $ 429,123 Operating income (loss) $ 104,713 $ 197,597 $ 22,855 $ 15,848 Net income (loss) $ 55,767 $ 117,955 $ 4,036 $ 105 Net income (loss) applicable to common stock $ 57,972 $ 123,064 $ 8,265 $ 3,319 Washington Gas Light Company Operating revenues $ 333,986 $ 475,021 $ 203,186 $ 154,775 Operating income (loss) $ 103,008 $ 165,858 $ 11,464 $ (12,018 ) Net income (loss) $ 55,461 $ 93,610 $ (1,671 ) $ (15,608 ) Net income (loss) applicable to common stock $ 55,131 $ 93,280 $ (2,001 ) $ (15,938 ) (a) During the second quarter of fiscal year 2018, WGL recorded an other than temporary impairment charge of $ 34.0 million related to its investment in Constitution Pipeline. (b) During the fourth quarter of fiscal year 2018, WGL recorded $ 234.0 million expenses of merger related cost due to the Merger with AltaGas. (c) During the fiscal year ended September 30, 2017, there were no substantial variations in operations. |
Schedule II
Schedule II | 12 Months Ended |
Sep. 30, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts and Reserves | WGL Holdings, Inc. and Subsidiaries Schedule II—Valuation and Qualifying Accounts and Reserves Years Ended September 30, 2018, 2017 and 2016 Balance at Additions Charged To Balance Beginning Costs and Other at End of (In thousands) of Period Expenses (a) Accounts (b) Deductions (c) Period 2018 Valuation and Qualifying Accounts Deducted from Assets in the Balance Sheet: Allowance for Doubtful Accounts $ 32,025 $ 22,730 $ 1,431 $ 16,100 $ 40,086 2017 Valuation and Qualifying Accounts Deducted from Assets in the Balance Sheet: Allowance for Doubtful Accounts $ 27,339 $ 17,205 $ 1,841 $ 14,360 $ 32,025 2016 Valuation and Qualifying Accounts Deducted from Assets in the Balance Sheet: Allowance for Doubtful Accounts $ 26,224 $ 13,051 $ 3,856 $ 15,792 $ 27,339 (a)Represent the amount of bad debt expense recorded to the income statement. (b)Recoveries on receivables previously written off as uncollectible and unclaimed customer deposits, overpayments, etc. non refundable. (c) Includes deductions for accounts charged-off. Washington Gas Light Company Schedule II—Valuation and Qualifying Accounts and Reserves Years Ended September 30, 2018, 2017 and 2016 Balance at Additions Charged To Balance at Beginning Costs and Other End of (In thousands) of Period Expenses (a) Accounts (b) Deductions (c) Period 2018 Valuation and Qualifying Accounts Deducted from Assets in the Balance Sheet: Allowance for Doubtful Accounts $ 23,741 $ 19,946 $ 1,409 $ 15,474 $ 29,622 2017 Valuation and Qualifying Accounts Deducted from Assets in the Balance Sheet: Allowance for Doubtful Accounts $ 20,220 $ 14,320 $ 1,821 $ 12,620 $ 23,741 2016 Valuation and Qualifying Accounts Deducted from Assets in the Balance Sheet: Allowance for Doubtful Accounts $ 19,254 $ 10,946 $ 3,806 $ 13,786 $ 20,220 (a)Represent the amount of bad debt expense recorded to the income statement. (b)Recoveries on receivables previously written off as uncollectible and unclaimed customer deposits, overpayments, etc. non refundable. (c) Includes deductions for accounts charged-off. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
General Business Combinations | On January 25, 2017 , WGL entered into a Merger Agreement to combine with AltaGas. On July 6, 2018 , the Merger was consummated between AltaGas, WGL, and the Merger Sub, a newly formed indirect wholly owned subsidiary of AltaGas. The Merger Agreement provided for the Merger of the Merger Sub with and into WGL, with WGL surviving as an indirect wholly owned subsidiary of AltaGas. In connection with the Merger, WGL established the SPE for the purposes of owning the common stock of Washington Gas. The SPE is a wholly owned subsidiary of WGL. In addition, WGL continues to own all of the shares of common stock of Washington Gas Resources and Hampshire. Washington Gas Resources owns all of the shares of common stock of four non-utility subsidiaries that include WGL Energy Services, WGL Energy Systems, WGL Midstream and WGSW. The Merger with AltaGas was recorded using the acquisition method of accounting. Under SEC regulations, WGL elected to not apply push down accounting to the stand alone WGL financial statements. The acquisition adjustments were recorded by AltaGas. |
Consolidation | CONSOLIDATION OF FINANCIAL STATEMENTS The Consolidated Financial Statements of WGL have been prepared in conformity with GAAP and under the rules of the Securities and Exchange Commission (SEC). The consolidated financial statements include the accounts of WGL and its subsidiaries during the fiscal years reported. Inter-company transactions have been eliminated. Refer to Note 17— Related Party Transactions for a discussion of inter-company transactions. At September 30, 2018 WGL has a variable interest in six investments that qualify as variable interest entities (VIEs). WGSW is the primary beneficiary for five of its VIEs; SFGF, SFRC, SFGF II, ASD and SFEE and accordingly, have been consolidated. WGL Midstream has a variable interest in Meade but is not the primary beneficiary of it; therefore, WGL has not consolidated this VIE entity. Refer to Note 16— Other Investments for a discussion of VIEs and other investments. |
Use of Estimates | USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS In accordance with GAAP, we make certain estimates and assumptions regarding: (i) reported assets and liabilities; (ii) disclosed contingent assets and liabilities at the date of the financial statements and (iii) reported revenues, revenues subject to refund, and expenses during the reporting period. Actual results could differ from those estimates. |
Inventory Policy | On October 1, 2017, Washington Gas and WGL Energy Services implemented a voluntary change in the application of an accounting principle with respect to accounting for natural gas, propane, and odorant inventories. Washington Gas and WGL Energy Services now apply the average cost methodology under which the cost of units carried in inventory is based on the weighted average cost per unit of inventory. Prior to this change, Washington Gas and WGL Energy Services applied the First-in First-out (FIFO) method of accounting for inventory under which the oldest inventory items were recorded as being sold first. We believe the new policy is preferable as it conforms to the method predominately used by our peers, better reflects the physical flow of inventory, conforms to the method used for certain of our other inventories, and will simplify recordkeeping requirements. The change in accounting principle was implemented on a prospective basis, therefore, we did not retrospectively adjust any prior periods or record a cumulative effect adjustment, as discussed below. Washington Gas implemented the change in accounting principle on a prospective basis in accordance with ASC Topic 980, which permits regulated entities to implement changes for financial reporting purposes in the same way those changes are implemented for regulatory reporting purposes when the change impacts allowable costs. WGL Energy Services implemented the change on a prospective basis as the impact on its financial statements for all periods presented, including the cumulative effect at October 1, 2017, was immaterial. The difference during the quarter between the prior FIFO method and the new average cost method was immaterial. |
Property, Plant and Equipment | In addition, WGL Energy Systems and WGL Midstream incurs capitalized interest during the cost of constructing and acquiring their long-term assets, including investments accounted for by the equity method. Washington Gas charges maintenance and repairs directly to operating expenses. Washington Gas capitalizes betterments and renewal costs and calculates depreciation applicable to its utility gas plant in service primarily using a straight-line method over the estimated remaining life of the plant. Washington Gas charges maintenance and repairs directly to operating expenses. Washington Gas capitalizes betterments and renewal costs and calculates depreciation applicable to its utility gas plant in service primarily using a straight-line method over the estimated remaining life of the plant. In accordance with regulatory requirements, such rates include a component related to asset removal costs for Washington Gas. These asset removal costs are accrued through depreciation expense with a corresponding credit to “Regulatory liabilities—Accrued asset removal costs.” When Washington Gas retires depreciable utility plant and equipment, it charges the associated original costs to “Accumulated depreciation and amortization” and any related removal costs incurred are charged to “Regulatory liabilities—Accrued asset removal costs.” Washington Gas periodically reviews the adequacy of its depreciation rates by considering estimated remaining lives and other factors. For information about Asset Retirement Obligations (ARO’s), refer to the section entitled “Asset Retirement Obligations”. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment (comprised principally of utility plant) are stated at original cost, including labor, materials, taxes and overhead costs incurred during the construction period. The cost of utility plant of Washington Gas includes an allowance for funds used during construction (AFUDC) that is calculated under a formula prescribed by our regulators in Maryland and the District of Columbia. Washington Gas capitalizes AFUDC as a component of construction overhead. |
Impairment of Long-Lived Assets | IMPAIRMENT OF LONG-LIVED ASSETS Management regularly reviews property and equipment and other long-lived assets, including certain definite-lived intangible assets and our equity method investments for possible impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. For our properties and equipment, the indicators of potential impairment may include a deteriorating business or legal climate, a significant adverse change in asset condition, specific regulatory disallowance, advances in technology or plans to dispose of an asset significantly before the end of its useful life, among others. Management performs the recoverability test whenever the indicators show a possible impairment. The amount used to test recoverability is determined based on an estimate of undiscounted cash flows, and measurement of an impairment loss is determined based on the fair value of the assets. The determination of fair value requires management to make assumptions about future cash inflows and outflows over the life of an asset. Any changes to the assumptions used for the future cash flow could result in revisions to the evaluation of the recoverability of the long-lived assets and the recognition of an impairment loss in the Consolidated Financial Statements. For our equity method investments, an impairment is recorded when the investment has experienced decline in value that is other-than-temporary. Additionally, if the projects in which we hold an investment recognize an impairment loss, we would record our proportionate share of that impairment loss and evaluate the investment for decline in value that is other-than-temporary. This review occurs quarterly, or more frequently if events or changes in circumstances indicate the carrying amount of the asset may not be recoverable. |
Operating Leases | OPERATING LEASES We have classified the leases of multiple office locations as operating leases. We amortize as rent expense the total of all scheduled lease payments (including lease payment escalations) and tenant allowances on a straight-line basis over the term of the leases. For this purpose, the lease term began on the date when the lessor commenced constructing the leasehold improvements which allowed us to occupy the respective locations. Leasehold improvement costs are classified as “Property, Plant and Equipment” on the Balance Sheets, and are being amortized to depreciation and amortization expense on a straight-line basis over the non-cancelable period of the leases. |
Cash and Cash Equivalents | We consider all investments with original maturities of three months or less to be cash equivalents |
Restricted Cash and Cash Equivalents | Restricted cash and cash equivalents represent funds that are restricted to satisfy designated liabilities. Restricted cash and cash equivalents available to satisfy designated current liabilities are classified as current assets. Restricted cash and cash equivalents expected to satisfy non-current liabilities are classified as non-current assets. |
Revenue Recognition | Regulated Utility Operations Revenues. For regulated deliveries of natural gas, Washington Gas reads meters and bills customers on a 19 -day monthly cycle basis. The billing cycles for customers do not coincide with the accounting periods used for financial reporting purposes; therefore, Washington Gas accrues unbilled revenues for gas delivered, but not yet billed, at the end of each accounting period. Cost of Gas. Washington Gas’ jurisdictional tariffs contain mechanisms that provide for the recovery of the cost of gas incurred on behalf of firm customers, including related pipeline transportation and storage capacity charges. Under these mechanisms, Washington Gas periodically adjusts its firm customers’ rates to reflect increases and decreases in these costs. Under or over-collections of gas costs in the current cycle are charged or credited to deferred charges or credits on the balance sheet as non-current regulatory assets or liabilities. Amounts deferred at the end of the cycle, August 31 of each year, are fully reconciled and transferred to current assets or liabilities under the balance sheet captions “Gas costs and other regulatory assets” and “Gas costs and other regulatory liabilities.” These balances are recovered or refunded to customers over the subsequent 12 month period. Revenue Taxes. Revenue taxes such as gross receipts taxes, Public Service Commission (PSC) fees, franchise fees and energy taxes are reported gross in operating revenues. Non-Utility Operations Retail Energy-Marketing Segment. WGL Energy Services sells natural gas and electricity on an unregulated basis to residential, commercial and industrial customers both inside and outside the Washington Gas service territory. WGL Energy Services enters into indexed or fixed-rate contracts with residential, commercial and industrial customers for sales of natural gas and electricity. Customer contracts typically have terms less than 24 months, but may extend up to 5 years . WGL Energy Services bills customers based upon metered gas and electricity usage. Usage is measured either on a cycle basis at customer premises or based on quantities delivered to the local utility, both of which may vary by month. The billing cycles for customers do not coincide with the accounting periods used for financial reporting purposes; therefore, WGL Energy Services accrues unbilled revenues for gas and electricity delivered, but not yet billed, at the end of each accounting period. In addition, WGL Energy Services periodically makes spot sales in the wholesale market due to specific delivery requirements or to reduce customer supply costs. Revenues are reflected in “Operating Revenues—Non- utility.” WGL Energy Services procures natural gas and electricity supply under contract structures in which it assembles the various components of supply from multiple suppliers to match its customer requirements. The cost of natural gas and electricity for these purchases is recorded using the contracted volumes and prices in “Non-Utility cost of energy-related sales.” Commercial Energy Systems Segment. WGL Energy Systems recognizes income and expenses for all design-build construction contracts using the percentage-of-completion method in “Operating Revenues—Non-utility” and “Non-Utility cost of energy-related sales.” WGL Energy Systems also recognizes income from its distributed energy assets based on the terms of the related power purchase agreements. Renewable Energy Certificates (RECs) are generated by WGL Energy Systems after every 1,000 Kilowatt-hours (kWh) of electricity are produced by an eligible solar facility. WGL Energy Systems recognizes income on the sale of RECs based on the contractual terms and conditions of the sale. Refer to Note 16— Other Investments for discussion of our income from operating lease arrangements and equity method investments. Midstream Energy Services Segment. WGL Midstream nets its revenues and costs related to its trading activities in "Operating Revenues—Non-utility". Any profits and losses from WGL Midstream's pipeline investments are included in “Equity in earnings of unconsolidated affiliates” in the accompanying Consolidated Statement of Income and are added to or subtracted from the carrying amount of WGL’s investment balance. Refer to Note 16— Other Investments for discussion of our pipeline equity method investments. |
Transportation Gas Imbalance | Transportation Gas Imbalance. Interruptible shippers and third-party marketer shippers transport gas to Washington Gas’ distribution system as part of the unbundled services offered. The delivered volumes of gas from third-party shippers into Washington Gas’ distribution system rarely equal the volumes billed to third-party marketer customers, resulting in transportation gas imbalances. These imbalances are usually short-term in duration, and Washington Gas monitors the activity and regularly notifies the shippers when their accounts have an imbalance. In accordance with regulatory treatment, Washington Gas does not record a receivable from or liability to third-party marketers associated with gas volumes related to these transportation imbalances but, rather, reflects the financial impact as a regulatory asset or liability related to its gas cost adjustment mechanism, thereby eliminating any profit or loss that would occur as a result of the imbalance. The regulatory treatment combines the imbalance for all marketers, including WGL Energy Services, into a single “net” adjustment to the regulatory asset or liability. |
Asset Optimization Program | Asset Optimization Program. Washington Gas optimizes the value of its long-term natural gas transportation and storage capacity resources by entering into physical and financial transactions in the form of forwards, futures and option contracts for periods when these resources are not being used to physically serve utility customers. Refer to “Derivative Activities” below for further discussion of the accounting for derivative transactions entered into under this program. Regulatory sharing mechanisms in all three jurisdictions allow the profit from these transactions to be shared between Washington Gas’ customers and shareholders. All unrealized fair value gains and losses, and margins generated from the physical and financial settlement of these asset optimization contracts are recorded in "Utility cost of gas" on the income statement or, in the case of amounts to be shared with rate payers, regulatory assets/liabilities on the balance sheet. |
Derivatives Activities | WEATHER-RELATED INSTRUMENTS Periodically, we purchase certain weather-related instruments, such as HDD derivatives and CDD derivatives. We account for these weather related instruments in accordance with ASC Subtopic 815-45, Derivatives and Hedging—Weather Derivatives. For HDD derivatives, benefits or costs are ultimately recognized to the extent actual HDDs fall above or below the contractual HDDs for each instrument. Benefits or costs are recognized for CDD derivatives when the average temperature exceeds or is below a contractually stated level during the contract period. Premiums for weather-related instruments are amortized based on the pattern of normal temperature days over the coverage period. Weather-related instruments for which we collect a premium are carried at fair value. Refer to Note 13— Derivative and Weather-Related Instruments for further discussion of our weather-related instruments. DERIVATIVE ACTIVITIES Regulated Utility. Washington Gas enters into both physical and financial derivative contracts for the purchase and sale of natural gas that are subject to mark-to-market accounting. Changes in the fair value of derivative instruments which are recoverable or refundable to customers when they settle are subject to ASC Topic 980 and are recorded as regulatory assets or liabilities while changes in the fair value of derivative instruments not affected by rate regulation are reflected in earnings. As part of its asset optimization program, Washington Gas enters into derivative contracts related to the sale and purchase of natural gas at a future price with the primary objective of securing operating margins that Washington Gas expects to ultimately realize. The derivatives used under this program may cause significant period-to-period volatility in earnings for the portion of net profits retained for shareholders; however, this earnings volatility will not change the realized margins that Washington Gas expects to earn. In accordance with ASC Topic 815, all financially and physically settled contracts under our asset optimization program are reported on a net basis in the statements of income in “Utility cost of gas”. From time to time, Washington Gas also utilizes derivative instruments that are designed to minimize the risk of interest-rate volatility associated with planned issuances of long-term debt. Gains or losses associated with these derivative transactions are deferred as regulatory assets or liabilities and amortized to interest expense in accordance with regulatory accounting requirements. Refer to Note 13— Derivative and Weather-Related Instruments for further discussion of our derivative activities. Non-Utility Operations. WGL Energy Services enters into both physical and financial contracts for the purchase and sale of natural gas and electricity. WGL Energy Services designates a portion of these physical contracts related to the purchase of natural gas and electricity to serve our customers as “normal purchases and normal sales;” therefore, they are not subject to the mark-to-market accounting requirements of ASC Topic 815. WGL Energy Services records these derivatives as revenues or expenses depending on the nature of the economically hedged item. WGL Midstream enters into derivative contracts for the purpose of optimizing its storage and transportation capacity as well as managing the transportation and storage assets on behalf of third parties. The financial contracts and the portion of the physical contracts that qualify as derivative instruments are subject to the mark-to-market accounting requirements and are recorded on the balance sheet at fair value and are reflected in earnings. WGL Midstream nets financial and physical contracts in "Operating Revenues-Non-utility". WGL may, from time to time, designate interest rate swaps used to manage the interest rate risk associated with future debt issuances, as cash flow hedges. Any gains or losses arising from the effective portion of cash flow hedges are recorded in other comprehensive income and are amortized using the effective interest rate method into earnings over the same period as the hedged interest payments are made. Gains or losses arising from the ineffective portion of cash flow hedges are recognized in earnings immediately. Concentration of Credit Risk We are exposed to credit risk from derivative instruments with wholesale counterparties, which is represented by the fair value of these instruments at the reporting date. We actively monitor and work to minimize counterparty concentration risk through various practices. Non-Utility Operations Trading Activities. WGL Midstream enters into derivative contracts for the purpose of optimizing its storage and transportation capacity as well as managing the transportation and storage assets on behalf of third parties. WGL Midstream does not designate these derivatives as hedges under ASC Topic 815; therefore, changes in the fair value of these derivative instruments are reflected in the earnings of our non-utility operations and may cause significant period-to-period volatility in earnings. Managing Price Risk. WGL Energy Services enters into certain derivative contracts as part of its strategy to manage the price risk associated with the sale and purchase of natural gas and electricity. WGL Energy Services elects "normal purchases and normal sales" treatment for a portion of these physical contracts related to the purchase of natural gas and electricity to serve its customers and therefore, they are not subject to the fair value accounting requirements of ASC Topic 815. Derivative instruments not designated as "normal purchases and normal sales" are recorded at fair value on our consolidated balance sheets, and changes in the fair value of these derivative instruments are reflected in the earnings of our non-utility operations, which may cause significant period-to-period volatility in earnings. WGL Energy Services does not designate derivatives as hedges under ASC Topic 815. Managing Interest-Rate Risk. WGL utilizes derivative instruments that are designed to limit the risk of interest-rate volatility associated with future debt issuances. Any collateral posted that is not offset against derivative assets and liabilities is included in “Other prepayments” in the accompanying balance sheets. Collateral received and not offset against derivative assets and liabilities is included in “Customer deposits and advance payments” in the accompanying balance sheets. WGL Energy Services utilizes weather-related instruments for managing the financial effects of weather risks. These instruments cover a portion of WGL Energy Services’ estimated revenue or energy-related cost exposure to variations in heating or cooling degree days. These contracts provide for payment to WGL Energy Services of a fixed-dollar amount for every degree day over or under specific levels during the calculation period depending upon the type of contract executed. Managing Price Risk. To manage price risk associated with acquiring natural gas supply for utility customers, Washington Gas enters into physical and financial derivative transactions in the form of forward, option and other contracts, as authorized by its regulators. Any gains and losses associated with these derivatives are recorded as regulatory liabilities or assets, respectively, to reflect the rate treatment for these economic hedging activities. Managing Interest-Rate Risk. Washington Gas may utilize derivative instruments that are designed to minimize the risk of interest-rate volatility associated with planned issuances of debt securities. Any gains and losses associated with these types of derivatives are recorded as regulatory liabilities or assets, respectively, and amortized in accordance with regulatory requirements, typically over the life of the related debt. Regulated Utility Operations Washington Gas enters into contracts that qualify as derivative instruments and are accounted for under ASC Topic 815. These derivative instruments are recorded at fair value on our balance sheets and Washington Gas does not currently designate any derivatives as hedges under ASC Topic 815. Washington Gas’ derivative instruments relate to: (i) Washington Gas’ asset optimization program; (ii) managing price risk associated with the purchase of gas to serve utility customers and (iii) managing interest rate risk. Asset Optimization. Washington Gas optimizes the value of its long-term natural gas transportation and storage capacity resources during periods when these resources are not being used to physically serve utility customers. Specifically, Washington Gas utilizes its transportation capacity assets to benefit from favorable natural gas prices between different geographic locations and utilizes its storage capacity assets to benefit from favorable natural gas prices between different time periods. As part of this asset optimization program, Washington Gas enters into physical and financial derivative transactions in the form of forward, futures and option contracts with the primary objective of securing operating margins that Washington Gas will ultimately realize. The derivative transactions entered into under this program are subject to mark-to-market accounting treatment under ASC Topic 820. Regulatory sharing mechanisms provide for the annual realized profit from these transactions to be shared between Washington Gas' shareholders and customers; therefore, changes in fair value are recorded through earnings, or as regulatory assets or liabilities to the extent that it is probable that realized gains and losses associated with these derivative transactions will be included in the rates charged to customers when they are realized. Unrealized gains and losses recorded to earnings may cause significant period-to-period volatility; this volatility does not change the operating margins that Washington Gas expects to ultimately realize from these transactions through the use of its storage and transportation capacity resources. Collateral WGL utilizes standardized master netting agreements, which facilitate the netting of cash flows into a single net exposure for a given counterparty. As part of these master netting agreements, cash, letters of credit and parent company guarantees may be required to be posted or obtained from counterparties in order to mitigate credit risk related to both derivatives and non-derivative positions. Under WGL’s offsetting policy, collateral balances are offset against the related counterparties’ derivative positions to the extent the application would not result in the over-collateralization of those derivative positions on the balance sheet. |
Income Taxes | We recognize deferred income tax assets and liabilities for all temporary differences between the financial statement basis and the tax basis of assets and liabilities, including those that are currently excluded for ratemaking purposes of Washington Gas. Regulatory assets or liabilities, corresponding to such additional deferred income tax assets or liabilities, may be recorded to the extent recoverable from or payable to customers through the ratemaking process in future periods. Refer to Note 2— Regulated Operations for Washington Gas’ regulatory assets and liabilities associated with income taxes due from and due to customers at September 30, 2018 and 2017 . Amounts applicable to income taxes due from and due to customers primarily represent differences between the financial statement basis and tax basis of net utility plant in service. We amortize investment tax credits as reductions to income tax expense over the estimated service lives of the related properties. |
Share-based Compensation | We generally account for stock-based compensation expense in accordance with ASC Topic 718, Compensation-Stock Compensation, which requires us to measure and recognize stock-based compensation expense in our financial statements based on the fair value at the date of grant for our equity-classified share-based awards. If the awards have a performance condition that is not a market condition, stock-based compensation expense is adjusted on the probable outcome of that condition. If the awards have a market condition, stock-based compensation expense is not adjusted to reflect the ultimate achievement of the market condition. For liability-classified share-based awards, we recognize stock-based compensation expense based on their fair value at the end of each reporting period. In addition, certain awards are accounted for under ASC Topic 710, Compensation - General, because they do not meet the definition of a stock-based award under ASC Topic 718. Compensation expense is recognized based on the probable outcome of the award at the end of each reporting period. For both equity-classified and liability-classified share-based awards, we estimate forfeitures over the requisite service period when recognizing compensation expense; these estimates are periodically adjusted to the extent to which actual forfeitures differ from such estimates. |
Asset Retirement Obligations | Washington Gas accounts for its AROs in accordance with ASC Subtopic 410-20, Asset Retirement and Environmental Obligations—Asset Retirement Obligations. Our AROs include the costs to cut, purge and cap Washington Gas' distribution and transmission system and plug storage wells upon their retirement. We also have AROs associated with our distributed generation assets. These standards require recording the estimated retirement cost over the life of the related asset by depreciating the present value of the retirement obligation, measured at the time of the asset’s acquisition, and accreting the liability until it is settled. There are timing differences between the ARO-related accretion and depreciation amounts being recorded pursuant to GAAP and the recognition of depreciation expense for legal asset removal costs that we are currently recovering in rates. These timing differences are recorded as a reduction to “Regulatory liabilities—Accrued asset removal costs” in accordance with ASC Topic 980. We do not have any assets that are legally restricted related to the settlement of asset retirement obligations. |
Accounting Standards Adopted in the Current Fiscal Year | ACCOUNTING STANDARDS ADOPTED IN FISCAL YEAR 2018 ASU 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income This update provides an option to reclassify the stranded tax effects resulting from the enactment of the Tax Act from accumulated other comprehensive income to retained earnings. The amendment only relates to the reclassification of the income tax effects of the Tax Act and the underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations is not affected. September 30, 2018 As a result of the early adoption of this standard, WGL and Washington Gas reclassified a credit of $1.8 million and $1.5 million, respectively, from AOCI to retained earnings at September 30, 2018. ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force) This standard requires restricted cash and restricted cash equivalents to be included in the cash and cash equivalents balances when reconciling the statement of cash flows. Presentation of restricted cash balances should be applied retrospectively to the statement of cash flows. WGL elected early adoption of this standard. September 30, 2018 At September 30, 2018, WGL had a balance of $65.0 million in multiple rabbi trusts invested in money market funds. These amounts are included in cash, cash equivalents and restricted cash balance in the Statement of Cash Flows for the fiscal year ended September 30, 2018. We did not have restricted cash and restricted cash equivalents for the fiscal years ended September 30, 2017 and 2016. For a further discussion, see the Statements of Cash Flows and Note 19- Supplemental Cash Flow Information . ASU 2016-15, Statement of Cash Flows (Topic 230)—Classification of Certain Cash Receipts and Cash Payments (a consensus of the FASB Emerging Issues Task Force) This update provides guidance on the classification of certain cash receipts and payments in the statement of cash flows. Early adoption is permitted and WGLH and Washington Gas elected early adoption of this standard. September 30, 2018 In September 2018, WGL and Washington Gas each reclassified $3.2 million of insurance proceeds related to our property and equipment from “Net Cash Provided by Operating Activities” to “Net Cash Used in Investing Activities” in Statement of Cash flows for the fiscal year ended September 30, 2018. We evaluated the impact of accounting guidance ASU 2016-15, and concluded that no other adjustments were needed for the fiscal years ended September 30, 2017 and 2016. ASU 2018-05, Income Taxes (Topic 740)—Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 This standard adds to the Codification various SEC paragraphs pursuant to the Issuance of Staff Accounting Bulletin (SAB) No. 118. and addresses the specific situation in which the initial accounting for certain income tax effects of the Tax Act will not be complete at the time that financial statements were issued covering the reporting period that includes the enactment date of December 22, 2017. October 1, 2017 Quarterly disclosures were incorporated in the Income Tax footnote in each of the FY 2018 Form 10-Q's filed with the SEC and will continue to be updated until the end of the measurement period. See Note 8- Income Taxes of the Notes to Consolidated Financial Statements for additional information. ______________________________________________________________________________________________________ ASU 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting This standard simplifies several aspects of the accounting for share-based payment transactions, including accounting for income taxes, forfeitures, statutory tax withholding requirements and classification in the statement of cash flows. October 1, 2017 Forfeitures - WGL has elected to continue to estimate forfeitures for its share-based payment awards rather than account for forfeitures when they occur. For the fiscal year ended September 30, 2018, WGL and Washington Gas recorded $3.5 million and $3.2 million, respectively, to current tax expense for excess tax benefits related to performance shares that vested in the period. ______________________________________________________________________________________________________ ASU 2016-06, Derivatives and Hedging (Topic 815) - Contingent Put and Call Options in Debt Instruments The amendments in this update clarify the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt October 1, 2017 The implementation of this standard did not have an effect on WGL or Washington Gas' financial statements. ______________________________________________________________________________________________________ ASU 2015-11, Inventory (Topic 330) - Simplifying the Measurement of Inventory This standard reduces the complexity in the current measurement of inventory. This ASU requires inventory to be measured at the lower of cost and net realizable value, where net realizable value is the estimated selling price in the ordinary course of business less reasonably predictable costs of completion, disposal and transportation (no change to the definition of net realizable value). The amendment eliminates the guidance that requires inventory to be stated at the lower of cost or market, which includes consideration of the replacement cost of inventory and the net realizable value of inventory, less an approximately normal profit margin. October 1, 2017 The implementation of this standard did not have a material effect on WGL or Washington Gas' financial statements. Refer to the “Change in Accounting Principle and Storage Gas Valuation Methods” section above for more information. _____________________________________________________________________________________________________ |
Other New Accounting Pronouncements | OTHER NEWLY ISSUED ACCOUNTING STANDARDS Standard Description Required date of adoption Effect on the financial statements or other significant matters ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost This standard requires entities to report the service cost component in the same financial statement line item as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are to be presented separately from service cost and outside of operating income. In addition, only the service cost component of net benefit cost is eligible for capitalization. Changes to the presentation of service costs and other components of net benefit cost should be applied retrospectively. Changes in capitalization practices should be implemented prospectively. October 1, 2018 We have concluded our evaluation of the interaction of this standard with the various regulatory provisions concerning pensions and post-retirement benefit costs. For the fiscal years ended September 30, 2018 and 2017, we expect to record a reclassification of $16.4 million and $6.5 million for WGL, and $11.6 million and $3.6 million for Washington Gas, respectively, of net periodic benefit income from operating expenses to other income in the Consolidated Statements of Income. The change in capitalization of retirement benefits will not have a material impact on WGL or Washington Gas' financial statements. ASU 2014-09, Revenue from Contracts with Customers (Topic 606), including subsequent ASUs clarifying the guidance. ASU 2014-09 establishes a comprehensive revenue recognition model clarifying the method used to determine the timing and requirements for revenue recognition from contracts with customers. The disclosure requirements under the new standard will enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. October 1, 2018 An implementation team has completed evaluating all revenue streams and reviewing contracts with customers, as well as, related financial statement disclosures to determine the impact the adoption of this standard will have on our financial statements. WGL has performed assessments and contract reviews of its revenue streams under the new revenue recognition model. WGL has finalized its review and is developing the new disclosures required by the standard. Currently, WGL does not expect adoption of this standard to have a material effect to its Consolidated Statements of Income or require a cumulative adjustment to retained earnings upon adoption of the standard. WGL will adopt using the modified retrospective approach. ASU 2016-01, Financial Instruments (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities including subsequent ASUs clarifying the guidance. The new standard amends certain disclosure requirements associated with the fair value of financial instruments, and significantly revises an entity’s accounting related to the classification and measurement of investments in equity securities and the presentation of certain fair value changes for financial liabilities measured at fair value. Early adoption is permitted. October 1, 2018 We have completed our evaluation and the adoption of this standard will primarily impact the disclosure of our financial instruments in our Fair Value Measurements Footnote however, we do not expect the impact to be material. ASU 2016-02, Leases (Topic 842), ASU 2018-01, Land Easement Practical Expedient for Transition to Topic 842, and ASU 2018-11, Targeted Improvements, including other subsequent ASUs clarifying the guidance. ASU 2016-02 requires recognition of a right-to-use asset and lease liability by lessees on the statement of financial position and disclosure of key information about leasing arrangements. Lessor accounting remains substantially unchanged but the standard modifies what qualifies as a sales-type and direct financing lease and eliminated real-estate specific provisions. The standard requires application using a modified retrospective approach. ASU 2018-01 provides an optional election not to evaluate existing and expired land easements not previously accounted for as a lease. ASU 2018-11 allows entities to elect to report comparative periods presented after adoption under the old lease standard (ASC Topic 840, Leases) and recognize a cumulative effect adjustment to the opening balance at the date of adoption. The update also provides lessors a practical expedient not requiring the separation of lease and non-lease components provided that certain conditions are met. October 1, 2019 WGL is currently performing a scoping exercise by gathering a complete inventory of lease contracts in order to evaluate the impact of adopting ASC Topic 842 on its consolidated financial statements and expects that the new standard will have an impact on the Company’s balance sheet as all operating leases will need to be reflected on the balance sheet upon adoption. In addition, WGL currently expects to utilize the transition practical expedients which allow entities to not have to reassess whether an arrangement contains a lease under the provisions of ASC Topic 842. ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments For credit losses on financial instruments, this standard changes the current incurred loss impairment methodology to an expected loss methodology and requires consideration of a broader range of reasonable and supportable information to determine credit loss estimates. October 1, 2020 We are in the process of evaluating the impact the adoption of this standard will have on our financial statements. Early adoption is permitted. ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted improvements to Accounting for Hedging Activities The new standard amends the hedge accounting and recognition requirements by expanding an entity's ability to hedge non-financial and financial risk components and reduce the complexity in fair value hedges of interest rate risk. Additionally, this standard eliminates the requirement to separately measure and disclose the ineffective portion of the hedge with the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item. Early adoption is permitted. October 1, 2020* The proposed guidance would be applicable to WGL and only have an impact on new transactions that are entered into and where hedge accounting is elected. ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement This update modifies the disclosure requirements on fair value measurements. October 1, 2020* It is not expected that the adoption of this standard will have a material effect on our financial statements. ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force) The update aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements to capitalize implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). Capitalized implementation costs should be presented in the statement of financial position and the expenses, which are amortized over the term of the hosting arrangement, presented in statement of income in the same line items as prepayment of fees associated with the hosting arrangement. October 1, 2020* The adoption of this ASU is not expected to have a material effect on our financial statements. Early adoption is permitted. ASU 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans This standard modifies the disclosure requirements related to defined benefit pension and other postretirement plans. September 30, 2021* We do not anticipate that adoption of this standard will have a material effect on WGL or Washington Gas' financial statements. *WGL may adopt this accounting standard early after the Merger with AltaGas to align the timing of implementation with its new parent company. WGL uses fiscal year for reporting its financial statements, while AltaGas uses calendar year, and the effective dates for accounting standards are different between fiscal and calendar accounting periods. OTHER NEWLY ISSUED ACCOUNTING STANDARDS ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost This standard requires entities to report the service cost component in the same financial statement line item as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are to be presented separately from service cost and outside of operating income. In addition, only the service cost component of net benefit cost is eligible for capitalization. Changes to the presentation of service costs and other components of net benefit cost should be applied retrospectively. Changes in capitalization practices should be implemented prospectively. October 1, 2018 We have concluded our evaluation of the interaction of this standard with the various regulatory provisions concerning pensions and post-retirement benefit costs. For the fiscal years ended September 30, 2018 and 2017, we expect to record a reclassification of $16.4 million and $6.5 million for WGL, and $11.6 million and $3.6 million for Washington Gas, respectively, of net periodic benefit income from operating expenses to other income in the Consolidated Statements of Income. The change in capitalization of retirement benefits will not have a material impact on WGL or Washington Gas' financial statements. ______________________________________________________________________________________________________ ASU 2014-09, Revenue from Contracts with Customers (Topic 606), including subsequent ASUs clarifying the guidance. ASU 2014-09 establishes a comprehensive revenue recognition model clarifying the method used to determine the timing and requirements for revenue recognition from contracts with customers. The disclosure requirements under the new standard will enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. October 1, 2018 An implementation team has completed evaluating all revenue streams and reviewing contracts with customers, as well as, related financial statement disclosures to determine the impact the adoption of this standard will have on our financial statements. WGL has performed assessments and contract reviews of its revenue streams under the new revenue recognition model. WGL has finalized its review and is developing the new disclosures required by the standard. Currently, WGL does not expect adoption of this standard to have a material effect to its Consolidated Statements of Income or require a cumulative adjustment to retained earnings upon adoption of the standard. WGL will adopt using the modified retrospective approach. ______________________________________________________________________________________________________ ASU 2016-01, Financial Instruments (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities including subsequent ASUs clarifying the guidance. The new standard amends certain disclosure requirements associated with the fair value of financial instruments, and significantly revises an entity’s accounting related to the classification and measurement of investments in equity securities and the presentation of certain fair value changes for financial liabilities measured at fair value. Early adoption is permitted. October 1, 2018 We have completed our evaluation and the adoption of this standard will primarily impact the disclosure of our financial instruments in our Fair Value Measurements Footnote however, we do not expect the impact to be material. ______________________________________________________________________________________________________ ASU 2016-02, Leases (Topic 842), ASU 2018-01, Land Easement Practical Expedient for Transition to Topic 842, and ASU 2018-11, Targeted Improvements, including other subsequent ASUs clarifying the guidance. ASU 2016-02 requires recognition of a right-to-use asset and lease liability by lessees on the statement of financial position and disclosure of key information about leasing arrangements. Lessor accounting remains substantially unchanged but the standard modifies what qualifies as a sales-type and direct financing lease and eliminated real-estate specific provisions. October 1, 2019 WGL is currently performing a scoping exercise by gathering a complete inventory of lease contracts in order to evaluate the impact of adopting ASC Topic 842 on its consolidated financial statements and expects that the new standard will have an impact on the Company’s balance sheet as all operating leases will need to be reflected on the balance sheet upon adoption. In addition, WGL currently expects to utilize the transition practical expedients which allow entities to not have to reassess whether an arrangement contains a lease under the provisions of ASC Topic 842. ______________________________________________________________________________________________________ ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments For credit losses on financial instruments, this standard changes the current incurred loss impairment methodology to an expected loss methodology and requires consideration of a broader range of reasonable and supportable information to determine credit loss estimates. October 1, 2020 We are in the process of evaluating the impact the adoption of this standard will have on our financial statements. Early adoption is permitted. ______________________________________________________________________________________________________ ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted improvements to Accounting for Hedging Activities The new standard amends the hedge accounting and recognition requirements by expanding an entity's ability to hedge non-financial and financial risk components and reduce the complexity in fair value hedges of interest rate risk. Additionally, this standard eliminates the requirement to separately measure and disclose the ineffective portion of the hedge with the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item. Early adoption is permitted. October 1, 2020* The proposed guidance would be applicable to WGL and only have an impact on new transactions that are entered into and where hedge accounting is elected. ______________________________________________________________________________________________________ ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement This update modifies the disclosure requirements on fair value measurements. October 1, 2020* It is not expected that the adoption of this standard will have a material effect on our financial statements. ______________________________________________________________________________________________________ ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force) The update aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements to capitalize implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). Capitalized implementation costs should be presented in the statement of financial position and the expenses, which are amortized over the term of the hosting arrangement, presented in statement of income in the same line items as prepayment of fees associated with the hosting arrangement. October 1, 2020* The adoption of this ASU is not expected to have a material effect on our financial statements. Early adoption is permitted. ______________________________________________________________________________________________________ ASU 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans This standard modifies the disclosure requirements related to defined benefit pension and other postretirement plans. September 30, 2021* We do not anticipate that adoption of this standard will have a material effect on WGL or Washington Gas' financial statements. ______________________________________________________________________________________________________ |
Short and Long Term Debt | WGL and Washington Gas satisfy their short-term financing requirements through the sale of commercial paper, financing arrangements with third-party lenders, or through bank borrowings. Due to the seasonal nature of the regulated utility and retail energy-marketing segments, short-term financing requirements can vary significantly during the year. Revolving credit agreements are maintained to support outstanding commercial paper and to permit short-term borrowing flexibility. The policy of each WGL and Washington Gas is to maintain bank credit facilities in amounts equal to or greater than the expected maximum commercial paper position. T WGL and Washington Gas issue long-term notes in the form of MTNs, unsecured long-term notes and private placement notes with individual terms regarding interest rates, maturities and call or put options. These notes can have maturity dates of one or more years from the date of issuance. |
Environmental Costs | We are subject to federal, state and local laws and regulations related to environmental matters. These laws and regulations may require expenditures over a long time frame to control environmental effects. Almost all of the environmental liabilities we have recorded are for costs expected to be incurred to remediate sites where we or a predecessor affiliate operated MGPs. Estimates of liabilities for environmental response costs are difficult to determine with precision because of the various factors that can affect their ultimate level. These factors include, but are not limited to, the following: • the complexity of the site; • changes in environmental laws and regulations at the federal, state and local levels; • the number of regulatory agencies or other parties involved; • new technology that renders previous technology obsolete or experience with existing technology that proves ineffective; • the level of remediation required; and • variations between the estimated and actual period of time that must be dedicated to respond to an environmentally-contaminated site. Washington Gas has identified up to ten sites where it or its predecessors may have operated MGPs. Washington Gas last used any such plant in 1984. In connection with these operations, we are aware that coal tar and certain other by-products of the gas manufacturing process are present at or near some former sites and may be present at others. |
Fair Value Measurement | Our money market funds are Level 1 valuations and their carrying amount approximates fair value. Other short-term investments are primarily overnight investment accounts; their carrying amount approximates fair value based on Level 2 inputs. The maturity of our commercial paper outstanding at both September 30, 2018 and 2017 is under 30 days. Due to the short term nature of these notes, the carrying cost of our commercial paper approximates fair value using Level 2 inputs. Due to the nature of our project financing arrangements, the carrying cost approximates fair value using Level 2 inputs. Neither WGL’s nor Washington Gas’ long-term debt is actively traded. The fair value of long-term debt was estimated based on valuation techniques when observable market data is not available. Our long-term debt fair value measurement is classified as Level 3. Non Recurring Basis During the second quarter of fiscal year 2018, WGL Midstream recorded an other than temporary impairment charge of $ 34.0 million to its equity method investment in Constitution based on the estimated fair value of the investment of $ 4.0 million . WGL Midstream utilized income and market approaches to determine the fair value of its investment in Constitution, which fall into Level 3 of the fair value hierarchy because of the significant unobservable inputs utilized in these valuation approaches, including consideration of the severity and duration of any decline in fair value of our investment in the project. Our key inputs included, but were not limited to, significant management judgments and estimates, including projections of the timing and amount of the project’s cash flows, determination of a discount rate for the income approach, market multipliers, probability weighting of potential outcomes of legal and regulatory proceedings, and weighting of the valuations produced by the income and market approaches. For more information, see Note 16 - Other Investments of the Notes to Consolidated Financial Statements. Our Risk Analysis and Mitigation (RA&M) Group determines the valuation policies and procedures. The RA&M Group reports to WGL’s Chief Financial Officer. In accordance with WGL’s valuation policy, we may utilize a variety of valuation methodologies to determine the fair value of Level 3 derivative contracts, including internally developed valuation inputs and pricing models. The prices used in our valuations are corroborated using multiple pricing sources, and we periodically conduct assessments to determine whether each valuation model is appropriate for its intended purpose. The RA&M Group also evaluates changes in fair value measurements on a daily basis. Recurring Basis We measure the fair value of our financial assets and liabilities using a combination of the income and market approaches in accordance with ASC Topic 820. These financial assets and liabilities primarily consist of derivatives recorded on our balance sheet under ASC Topic 815 and short-term investments, commercial paper and long-term debt outstanding required to be disclosed at fair value. Under ASC Topic 820, fair value is defined as the exit price, representing the amount that would be received in the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To value our financial instruments, we use market data or assumptions that market participants would use, including assumptions about credit risk (both our own credit risk and the counterparty’s credit risk) and the risks inherent in the inputs to valuation. We enter into derivative contracts in the futures and over-the-counter (OTC) wholesale and retail markets. These markets are the principal markets for the respective wholesale and retail contracts. Our relevant market participants are our existing counterparties and others who have participated in energy transactions at our delivery points. These participants have access to the same market data as WGL. Valuations are generally based on pricing service data or indicative broker quotes depending on the market location. We measure the net credit exposure at the counterparty level where the right to set-off exists. The net exposure is determined using the mark-to-market exposure adjusted for collateral, letters of credit and parent guarantees. We use published default rates from Standard & Poor’s Ratings Services and Moody’s Investors Service as inputs for determining credit adjustments. ASC Topic 820 establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs Transfers between different levels of the fair value hierarchy may occur based on fluctuations in the valuation inputs and on the level of observable inputs used to value the instruments from period to period. It is our policy to show both transfers into and out of the different levels of the fair value hierarchy at the fair value as of the beginning of the period. Transfers out of Level 3 during the fiscal year ended September 30, 2018 and 2017 were due to valuations that experienced an increase in observable market inputs. Transfers into Level 3 during the fiscal year ended September 30, 2018 were due to an increase in unobservable market inputs, primarily pricing points. |
Segment Reporting | We have four reportable operating segments: regulated utility, retail energy-marketing, commercial energy systems and midstream energy services. The division of these segments into separate revenue generating components is based upon regulation, products and services. Our chief operating decision maker is our Chief Executive Officer and we evaluate segment performance based on Earnings Before Interest and Taxes (EBIT). EBIT is defined as earnings before interest and taxes net of amounts attributable to non-controlling interests. Items we do not include in EBIT are interest expense, intercompany financing activity, dividends on Washington Gas preferred stock, and income taxes. EBIT includes transactions between reportable segments. We also evaluate our operating segments based on other relevant factors, such as penetration into their respective markets and return on equity. |
Other Investments | Stonewall System WGL Midstream has a 30% equity interest in an entity that owns and operates certain assets known as the Stonewall Gas Gathering System (the Stonewall System). Although WGL Midstream holds greater than a 50% interest in Meade, Meade is not consolidated by WGL Midstream and WGL Midstream accounts for its investment in Meade under the equity method of accounting. WGL Midstream is not the primary beneficiary of Meade as it does not have the power to direct the activities most significant to the economic performance of Meade. WGL Midstream utilizes HLBV in its application of equity method of accounting for this investment and any profits and losses are included in “Equity in earnings of unconsolidated affiliates” in the accompanying Condensed Consolidated Statements of Income and are added to or subtracted from the carrying amount of WGL’s investment balance. Constitution WGL Midstream owns a 10% interest in Constitution. The Constitution pipeline is proposed to transport natural gas from the Marcellus region in northern Pennsylvania to major northeastern markets. Constitution is accounted for under the equity method of accounting; any profits and losses are included in “Equity in earnings of unconsolidated affiliates” in the accompanying Condensed Consolidated Statements of Income and are added to or subtracted from the carrying amount of WGL’s investment balance. The equity method is considered appropriate because Constitution is an LLC with specific ownership accounts and ownership between five and fifty percent resulting in WGL Midstream maintaining a more than minor influence over the partnership operating and financing policies. The equity method is considered appropriate because Mountain Valley is an LLC with specific ownership accounts and ownership between five and fifty percent resulting in WGL Midstream maintaining a more than minor influence over the partnership operating and financing policies. Profits and losses are allocated under the HLBV method of accounting and are included in “Equity in earnings of unconsolidated affiliates” in the accompanying Condensed Consolidated Statements of Income and are added to or subtracted from the carrying amount of WGL’s investment balance. WGL has both solar and pipeline investments and accounts for its interests in legal entities as either a: (i) variable interest entity (VIE) or a (ii) voting interest entity (non-VIE). A VIE is a legal entity with one of the following characteristics: (i) has insufficient at-risk equity to fund its activities without additional subordinated financial support from any other party or parties; (ii) the equity holders of which, as a group, lack the characteristics of a controlling financial interest; or (iii) the entity is structured with non-substantive voting rights. The determination of whether or not to consolidate a VIE under GAAP requires a significant amount of judgment. This includes, but is not limited to, consideration of our contractual relationships with the entity, the legal structure of the entity, the voting power of the equity holders, the obligation of the equity holders to absorb losses of the entity and their rights to receive any expected residual returns. Under the VIE model, we have a controlling financial interest in a VIE (i.e., are the primary beneficiary) and would consolidate the entity when we have current or potential rights that give us the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance combined with a variable interest that gives us the right to receive potentially significant benefits or the obligation to absorb potentially significant losses. When changes occur to the design of an entity, we reconsider whether the entity is a VIE. We also continuously evaluate whether we have a controlling financial interest in a VIE. Under the voting interest model, we consolidate an entity when we have a controlling financial interest by holding directly or indirectly, more than 50% of the voting rights or by exercising control through substantive participating rights. However, we consider substantive rights held by other partners in determining if we hold a controlling financial interest, and in some cases, may not consolidate the entity despite owning more than 50% of the voting rights. We reevaluate whether we have a controlling financial interest in these entities when our voting or substantive participating rights change. Where we do not have a controlling financial interest, we apply the equity method of accounting. We have investments in both consolidated and unconsolidated entities which are described in detail below. The unconsolidated investments are accounted for under the equity method of accounting with profits and losses included in “Equity in earnings of unconsolidated affiliates” in the accompanying Condensed Consolidated Statements of Income, and the unconsolidated investment balances included in “Investments in unconsolidated affiliates” in the accompanying Condensed Consolidated Balance Sheets. Consolidated investments are accounted for under the principles of consolidation with profits and losses included in the appropriate revenues and expenses lines in the accompanying Condensed Consolidated Statements of Income, and the consolidated investment balances are included in the appropriate assets and liabilities lines in the accompanying Condensed Consolidated Balance Sheets. Profits and losses associated with non-controlling interests are included in “Net income (loss) attributable to non-controlling interest” in the accompanying Condensed Consolidated Statements of Income and are recorded to "Non-controlling interest" in the accompanying Condensed Consolidated Balance Sheets. WGL uses the Hypothetical Liquidation at Book Value (HLBV) methodology to determine its earnings or losses for certain equity method investments as well as for the non-controlling interests in consolidated investments when the governing structuring agreement over the equity investment results in different liquidation rights and priorities than what is reflected by the underlying ownership interest percentage. For investments accounted for under the HLBV method, simply applying the percentage ownership interest to GAAP net income in order to determine earnings or losses does not accurately represent the income allocation and cash flow distributions that will ultimately be received by the investors. The HLBV calculation may vary in its complexity depending on the capital structure and the tax considerations for the investments. When applying HLBV, WGL determines the amount that it would receive if an equity investment entity were to liquidate all of its assets at book value (as valued in accordance with GAAP) and distribute that cash to the investors based on the contractually defined liquidation priorities. The change in WGL's claim on the investee's book value at the beginning and end of the reporting period (adjusted for contributions and distributions) is WGL’s share of the earnings or losses from the equity investment for the period. Although WGL Midstream holds greater than a 50% interest in Meade, Meade is not consolidated by WGL Midstream and WGL Midstream accounts for its investment in Meade under the equity method of accounting. WGL Midstream is not the primary beneficiary of Meade as it does not have the power to direct the activities most significant to the economic performance of Meade. WGL Midstream utilizes HLBV in its application of equity method of accounting for this investment and any profits and losses are included in “Equity in earnings of unconsolidated affiliates” in the accompanying Condensed Consolidated Statements of Income and are added to or subtracted from the carrying amount of WGL’s investment balance. The equity method is considered appropriate because the Stonewall System is an LLC with specific ownership accounts and ownership between five and fifty percent resulting in WGL Midstream maintaining a more than minor influence over the partnership operating and financing policies. Profits and losses are allocated under the HLBV method of accounting and are included in “Equity in earnings of unconsolidated affiliates” in the accompanying Condensed Consolidated Statements of Income and are added to or subtracted from the carrying amount of WGL’s investment balance. Mountain Valley Pipeline In March 2015, WGL Midstream acquired a 7% equity interest in Mountain Valley Pipeline, LLC (Mountain Valley). On October 24, 2016, WGL Midstream acquired an additional 3% equity interest in Mountain Valley by assuming all of Vega Midstream MVP LLC's (Vega Energy) interest in the joint venture. WGL Midstream now owns a 10% interest in Mountain Valley. Meade In 2014, WGL through its subsidiary WGL Midstream, entered into a limited liability company agreement and formed Meade Pipeline Co LLC (Meade), a Delaware limited liability company, with Transcontinental Gas Pipe Line Company, LLC (Transco) to invest in a regulated pipeline, a segment of Transco's Atlantic Sunrise project, called Central Penn Pipeline (Central Penn). |
Consolidation, Variable Interest Entity, Policy | WGL's subsidiary, WGSW, Inc. was the primary beneficiary of SFGF LLC (SFGF), SFRC, LLC (SFRC), SFGF II, LLC (SFGF II), ASD Solar LP (ASD) and SFEE LLC (SFEE), because of its ability to direct the activities most significant to the economic performance of those entities plus the right to receive potentially significant benefits or the obligation to absorb potentially significant losses. Accordingly, we have consolidated these VIE's. SFGF, SFRC, and SFGF II WGSW, along with its various tax equity partners, formed the tax equity partnerships SFGF, SFRC, and SFGF II to acquire, own, and operate distributed generation solar projects nationwide. WGSW is the managing member of these investments and will provide cash equal to the purchase price of the solar projects less any contributions from the tax-equity partner for projects sold into the partnerships. WGL Energy Systems is the developer of the projects and sells them to the partnerships and is the operations and maintenance provider. Profits and losses are allocated between the partners under the HLBV method of accounting and the portion allocated to the tax equity partner is included in “Net income (loss) attributable to non-controlling interest” on the accompanying Condensed Consolidated Statements of Income and is recorded to "Non-controlling interest" on the accompanying Condensed Consolidated Balance Sheets. SFEE On November 23, 2016, WGSW and a tax equity partner formed SFEE to acquire distributed generation solar projects that were to be developed and sold by a third-party developer or WGL Energy Systems. New projects were to be designed and constructed under long-term power purchase agreements. On November 8, 2017, WGSW terminated the Master Purchase Agreement between SFEE and the third-party developer. The termination triggered a reassessment of the method of accounting for SFEE and, as a result, SFEE is considered a VIE and is consolidated by WGSW. WGSW is the limited partner in ASD, a limited partnership formed to own and operate a portfolio of residential solar projects, primarily rooftop photovoltaic power generation systems. As the limited partner, WGSW provided funding to the partnership through the funding commitment period that ended in January 2014 |
Accounting Policies (Tables)
Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Table] [Line Items] | |
Property, Plant, and Equipment at Original Cost | At September 30, 2018 and 2017 , 87.3 % and 87.2% , respectively, of WGL’s consolidated original cost of property, plant and equipment was related to the regulated utility segment as shown below. Property, Plant and Equipment at Original Cost ($ In millions) September 30, 2018 2017 Regulated utility segment Distribution, transmission and storage $ 4,808.7 74.1 % $ 4,544.7 74.0 % General, miscellaneous and intangibles 539.4 8.3 % 548.5 8.9 % Construction work in progress (CWIP) 317.3 4.9 % 264.8 4.3 % Total regulated utility segment 5,665.4 87.3 % 5,358.0 87.2 % Unregulated segments 820.3 12.7 % 786.0 12.8 % Total $ 6,485.7 100.0 % $ 6,144.0 100.0 % |
Changes in Asset Retirement Obligations | WGL Holdings, Inc. Changes in Asset Retirement Obligations (In millions) September 30, 2018 2017 Asset retirement obligations at beginning of year $ 303.9 $ 210.3 Liabilities incurred in the period 2.5 3.0 Revaluation of asset retirement obligation — 89.5 Liabilities settled in the period (7.3 ) (7.2 ) Accretion expense 12.6 8.3 Asset retirement obligations at the end of the year (a) $ 311.7 $ 303.9 |
Accounting standards adopted in the current fiscal year | The following tables represent accounting standards adopted by WGLH and Washington Gas during the fiscal year ended September 30, 2018 and other newly issued accounting standards that will be adopted by WGLH and Washington Gas in the future. ACCOUNTING STANDARDS ADOPTED IN FISCAL YEAR 2018 Standard Description Date of adoption Effect on the financial statements or other significant matters ASU 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income This update provides an option to reclassify the stranded tax effects resulting from the enactment of the Tax Act from accumulated other comprehensive income to retained earnings. The amendment only relates to the reclassification of the income tax effects of the Tax Act and the underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations is not affected. September 30, 2018 As a result of the early adoption of this standard, WGL and Washington Gas reclassified a credit of $1.8 million and $1.5 million, respectively, from AOCI to retained earnings at September 30, 2018. ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force) This standard requires restricted cash and restricted cash equivalents to be included in the cash and cash equivalents balances when reconciling the statement of cash flows. Presentation of restricted cash balances should be applied retrospectively to the statement of cash flows. WGL elected early adoption of this standard. September 30, 2018 At September 30, 2018, WGL had a balance of $65.0 million in multiple rabbi trusts invested in money market funds. These amounts are included in cash, cash equivalents and restricted cash balance in the Statement of Cash Flows for the fiscal year ended September 30, 2018. We did not have restricted cash and restricted cash equivalents for the fiscal years ended September 30, 2017 and 2016. For a further discussion, see the Statements of Cash Flows and Note 19- Supplemental Cash Flow Information . ASU 2016-15, Statement of Cash Flows (Topic 230)—Classification of Certain Cash Receipts and Cash Payments (a consensus of the FASB Emerging Issues Task Force) This update provides guidance on the classification of certain cash receipts and payments in the statement of cash flows. Early adoption is permitted and WGLH and Washington Gas elected early adoption of this standard. September 30, 2018 In September 2018, WGL and Washington Gas each reclassified $3.2 million of insurance proceeds related to our property and equipment from “Net Cash Provided by Operating Activities” to “Net Cash Used in Investing Activities” in Statement of Cash flows for the fiscal year ended September 30, 2018. We evaluated the impact of accounting guidance ASU 2016-15, and concluded that no other adjustments were needed for the fiscal years ended September 30, 2017 and 2016. ASU 2018-05, Income Taxes (Topic 740)—Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 This standard adds to the Codification various SEC paragraphs pursuant to the Issuance of Staff Accounting Bulletin (SAB) No. 118. and addresses the specific situation in which the initial accounting for certain income tax effects of the Tax Act will not be complete at the time that financial statements were issued covering the reporting period that includes the enactment date of December 22, 2017. October 1, 2017 Quarterly disclosures were incorporated in the Income Tax footnote in each of the FY 2018 Form 10-Q's filed with the SEC and will continue to be updated until the end of the measurement period. See Note 8- Income Taxes of the Notes to Consolidated Financial Statements for additional information. ASU 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting This standard simplifies several aspects of the accounting for share-based payment transactions, including accounting for income taxes, forfeitures, statutory tax withholding requirements and classification in the statement of cash flows. October 1, 2017 Forfeitures - WGL has elected to continue to estimate forfeitures for its share-based payment awards rather than account for forfeitures when they occur. For the fiscal year ended September 30, 2018, WGL and Washington Gas recorded $3.5 million and $3.2 million, respectively, to current tax expense for excess tax benefits related to performance shares that vested in the period. ASU 2016-06, Derivatives and Hedging (Topic 815) - Contingent Put and Call Options in Debt Instruments The amendments in this update clarify the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt October 1, 2017 The implementation of this standard did not have an effect on WGL or Washington Gas' financial statements. ASU 2015-11, Inventory (Topic 330) - Simplifying the Measurement of Inventory This standard reduces the complexity in the current measurement of inventory. This ASU requires inventory to be measured at the lower of cost and net realizable value, where net realizable value is the estimated selling price in the ordinary course of business less reasonably predictable costs of completion, disposal and transportation (no change to the definition of net realizable value). The amendment eliminates the guidance that requires inventory to be stated at the lower of cost or market, which includes consideration of the replacement cost of inventory and the net realizable value of inventory, less an approximately normal profit margin. October 1, 2017 The implementation of this standard did not have a material effect on WGL or Washington Gas' financial statements. Refer to the “Change in Accounting Principle and Storage Gas Valuation Methods” section above for more information. |
Other newly issued accounting standards | OTHER NEWLY ISSUED ACCOUNTING STANDARDS Standard Description Required date of adoption Effect on the financial statements or other significant matters ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost This standard requires entities to report the service cost component in the same financial statement line item as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are to be presented separately from service cost and outside of operating income. In addition, only the service cost component of net benefit cost is eligible for capitalization. Changes to the presentation of service costs and other components of net benefit cost should be applied retrospectively. Changes in capitalization practices should be implemented prospectively. October 1, 2018 We have concluded our evaluation of the interaction of this standard with the various regulatory provisions concerning pensions and post-retirement benefit costs. For the fiscal years ended September 30, 2018 and 2017, we expect to record a reclassification of $16.4 million and $6.5 million for WGL, and $11.6 million and $3.6 million for Washington Gas, respectively, of net periodic benefit income from operating expenses to other income in the Consolidated Statements of Income. The change in capitalization of retirement benefits will not have a material impact on WGL or Washington Gas' financial statements. ASU 2014-09, Revenue from Contracts with Customers (Topic 606), including subsequent ASUs clarifying the guidance. ASU 2014-09 establishes a comprehensive revenue recognition model clarifying the method used to determine the timing and requirements for revenue recognition from contracts with customers. The disclosure requirements under the new standard will enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. October 1, 2018 An implementation team has completed evaluating all revenue streams and reviewing contracts with customers, as well as, related financial statement disclosures to determine the impact the adoption of this standard will have on our financial statements. WGL has performed assessments and contract reviews of its revenue streams under the new revenue recognition model. WGL has finalized its review and is developing the new disclosures required by the standard. Currently, WGL does not expect adoption of this standard to have a material effect to its Consolidated Statements of Income or require a cumulative adjustment to retained earnings upon adoption of the standard. WGL will adopt using the modified retrospective approach. ASU 2016-01, Financial Instruments (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities including subsequent ASUs clarifying the guidance. The new standard amends certain disclosure requirements associated with the fair value of financial instruments, and significantly revises an entity’s accounting related to the classification and measurement of investments in equity securities and the presentation of certain fair value changes for financial liabilities measured at fair value. Early adoption is permitted. October 1, 2018 We have completed our evaluation and the adoption of this standard will primarily impact the disclosure of our financial instruments in our Fair Value Measurements Footnote however, we do not expect the impact to be material. ASU 2016-02, Leases (Topic 842), ASU 2018-01, Land Easement Practical Expedient for Transition to Topic 842, and ASU 2018-11, Targeted Improvements, including other subsequent ASUs clarifying the guidance. ASU 2016-02 requires recognition of a right-to-use asset and lease liability by lessees on the statement of financial position and disclosure of key information about leasing arrangements. Lessor accounting remains substantially unchanged but the standard modifies what qualifies as a sales-type and direct financing lease and eliminated real-estate specific provisions. The standard requires application using a modified retrospective approach. ASU 2018-01 provides an optional election not to evaluate existing and expired land easements not previously accounted for as a lease. ASU 2018-11 allows entities to elect to report comparative periods presented after adoption under the old lease standard (ASC Topic 840, Leases) and recognize a cumulative effect adjustment to the opening balance at the date of adoption. The update also provides lessors a practical expedient not requiring the separation of lease and non-lease components provided that certain conditions are met. October 1, 2019 WGL is currently performing a scoping exercise by gathering a complete inventory of lease contracts in order to evaluate the impact of adopting ASC Topic 842 on its consolidated financial statements and expects that the new standard will have an impact on the Company’s balance sheet as all operating leases will need to be reflected on the balance sheet upon adoption. In addition, WGL currently expects to utilize the transition practical expedients which allow entities to not have to reassess whether an arrangement contains a lease under the provisions of ASC Topic 842. ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments For credit losses on financial instruments, this standard changes the current incurred loss impairment methodology to an expected loss methodology and requires consideration of a broader range of reasonable and supportable information to determine credit loss estimates. October 1, 2020 We are in the process of evaluating the impact the adoption of this standard will have on our financial statements. Early adoption is permitted. ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted improvements to Accounting for Hedging Activities The new standard amends the hedge accounting and recognition requirements by expanding an entity's ability to hedge non-financial and financial risk components and reduce the complexity in fair value hedges of interest rate risk. Additionally, this standard eliminates the requirement to separately measure and disclose the ineffective portion of the hedge with the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item. Early adoption is permitted. October 1, 2020* The proposed guidance would be applicable to WGL and only have an impact on new transactions that are entered into and where hedge accounting is elected. ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement This update modifies the disclosure requirements on fair value measurements. October 1, 2020* It is not expected that the adoption of this standard will have a material effect on our financial statements. ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force) The update aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements to capitalize implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). Capitalized implementation costs should be presented in the statement of financial position and the expenses, which are amortized over the term of the hosting arrangement, presented in statement of income in the same line items as prepayment of fees associated with the hosting arrangement. October 1, 2020* The adoption of this ASU is not expected to have a material effect on our financial statements. Early adoption is permitted. ASU 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans This standard modifies the disclosure requirements related to defined benefit pension and other postretirement plans. September 30, 2021* We do not anticipate that adoption of this standard will have a material effect on WGL or Washington Gas' financial statements. *WGL may adopt this accounting standard early after the Merger with AltaGas to align the timing of implementation with its new parent company. WGL uses fiscal year for reporting its financial statements, while AltaGas uses calendar year, and the effective dates for accounting standards are different between fiscal and calendar accounting periods. |
Washington Gas Light Company | |
Accounting Policies [Table] [Line Items] | |
Changes in Asset Retirement Obligations | Washington Gas Light Company Changes in Asset Retirement Obligations (In millions) September 30, 2018 2017 Asset retirement obligations at beginning of year $ 298.9 $ 206.6 Liabilities incurred in the period 1.4 2.0 Revaluation of asset retirement obligation — 89.5 Liabilities settled in the period (7.3 ) (7.2 ) Accretion expense 12.5 8.0 Asset retirement obligations at the end of the year (a) $ 305.5 $ 298.9 (a)Includes short-term asset retirement obligations of $7.3 million and $7.1 million for fiscal year 2018 and 2017 , respectively. |
Regulated Operations (Tables)
Regulated Operations (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Regulated Operations [Abstract] | |
Schedule of Regulatory Assets and Liabilities | At September 30, 2018 and 2017 , we recorded the following regulatory assets and liabilities on our balance sheets. These assets and liabilities will be recognized as revenues or expenses in future periods as they are reflected in customers’ rates. Regulatory Assets and Liabilities (In millions) Regulatory Assets Regulatory Liabilities September 30, 2018 2017 2018 2017 Current: Gas costs due from/to customers (a) $ 4.4 $ 0.2 $ 9.0 $ 10.6 Interruptible sharing (a) — 2.4 1.5 0.7 Revenue normalization mechanisms for Maryland and Virginia (a) — 11.7 3.6 1.4 Accelerated replacement recovery mechanisms 0.6 7.4 1.9 1.1 Rates subject to refund (c) — — — 9.0 Tax Cuts and Jobs Act rate refunds (d) — — 18.1 $ — Total current $ 5.0 $ 21.7 $ 34.1 $ 22.8 Deferred: Accrued asset removal costs $ — $ — $ 270.4 $ 292.2 Deferred gas costs (a)(b) 83.2 90.1 — — Pension and other post-retirement benefits Deferred pension costs—trackers (e) 9.1 19.7 — — ASC Topic 715 unrecognized costs/income (a)(f) Pensions 48.2 119.6 — — Other post-retirement benefits — 0.2 160.3 135.0 Total pension and other post-retirement benefits 57.3 139.5 160.3 135.0 Other: Income tax-related amounts due from/to customers (g) 43.1 37.9 440.6 3.2 Losses/gains on issuance and extinguishments of debt and interest-rate derivative instruments (a)(h) 15.3 16.4 1.3 1.4 Rights-of-way fees (a) — — 1.9 0.7 Business process outsourcing and related costs (a) 6.2 8.2 — — Non-retirement employee benefits (a)(i) 16.5 17.8 — — Deferred distribution integrity management (a)(j) 5.8 7.7 — — Recoverable portion of abandoned LNG facility 2.7 3.1 — — Environmental response costs (a)(k) 5.0 2.5 — — Energy efficiency program-Maryland 4.5 5.3 — — Other regulatory expenses 5.5 5.7 1.4 4.1 Total other $ 104.6 $ 104.6 $ 445.2 $ 9.4 Total deferred $ 245.1 $ 334.2 $ 875.9 $ 436.6 Total $ 250.1 $ 355.9 $ 910.0 $ 459.4 (a)Washington Gas does not earn its overall rate of return on these assets. Washington Gas is allowed to recover and required to pay, using short-term interest rates, the carrying costs related to billed gas costs due from and to its customers in the District of Columbia and Virginia jurisdictions. (b)Includes fair value of derivatives, which are not included in customer bills until settled. (c)Represents provision established for refunds to customers when the substitution of final rates resulted in an amount greater than the amount collected during the interim period related to the 2016 Virginia Rate Case. (d)Represents amounts accrued for future refunds due to the Tax Cuts and Jobs Act of 2017. For a further discussion, see Rates and Regulatory Matters section of Management's Discussion Analysis and Note 8-Income Taxes in the Notes to Consolidated Financial Statements. (e)Relates to the District of Columbia jurisdiction. (f)Refer to Note 9-Pension and Other Post-Retirement Benefit Plans for a further discussion of these amounts. (g) This balance represents amounts due from customers for deferred tax liabilities related to tax benefits on deduction flowed directly to customers prior to the adoption of income tax normalization for ratemaking purposes and to tax rate changes including the latest reduction as a result of the Tax Act. (h)The losses or gains on the issuance and extinguishment of debt and interest-rate derivative instruments include unamortized balances from transactions executed in prior fiscal years. These transactions create gains and losses that are amortized over the remaining life of the debt as prescribed by regulatory accounting requirements. (i)Represents the timing difference between the recognition of workers compensation and short-term disability costs in accordance with generally accepted accounting principles and the way these costs are recovered through rates. (j)This balance represents amounts for deferred expenditures associated with Washington Gas’ Distribution Integrity Management Program (DIMP) in Virginia. (k)This balance represents allowed environmental remediation expenditures at Washington Gas sites to be recovered through rates for Maryland and the District of Columbia. The recovery period is over several years. |
Accounts Payable and Other Ac_2
Accounts Payable and Other Accrued Liabilities (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Accounts Payable and Accrued Liabilities [Line Items] | |
Accounts Payable and Other Accrued Liabilities | The tables below provide details for the amounts included in “Accounts payable and other accrued liabilities” on the balance sheets for both WGL and Washington Gas. WGL Holdings, Inc. September 30, (In millions) 2018 2017 Accounts payable—trade $ 420.0 $ 361.6 Employee benefits and payroll accruals 34.2 35.0 Other accrued liabilities 64.6 27.2 Total $ 518.8 $ 423.8 |
Washington Gas Light Company | |
Accounts Payable and Accrued Liabilities [Line Items] | |
Accounts Payable and Other Accrued Liabilities | Washington Gas Light Company September 30, (In millions) 2018 2017 Accounts payable—trade $ 187.0 $ 174.9 Employee benefits and payroll accruals 32.9 32.4 Other accrued liabilities 51.4 12.5 Total $ 271.3 $ 219.8 |
Short-Term Debt (Tables)
Short-Term Debt (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Short-term Debt [Abstract] | |
Commited Credit Available | The following is a summary of committed credit available at September 30, 2018 and 2017 . Committed Credit Available (In millions) September 30, 2018 WGL (b) Washington Gas Total Consolidated Committed credit agreements Unsecured revolving credit facility, expires December 19, 2019 (a) $ 650.0 $ 350.0 $ 1,000.0 Less: Commercial Paper (492.5 ) (95.0 ) (587.5 ) Net committed credit available $ 157.5 $ 255.0 $ 412.5 Weighted average interest rate 2.61 % 2.42 % 2.58 % September 30, 2017 Committed credit agreements Unsecured revolving credit facility, expires December 19, 2019 (a) $ 650.0 $ 350.0 $ 1,000.0 Less: Commercial Paper (382.0 ) (123.0 ) (505.0 ) Net committed credit available $ 268.0 $ 227.0 $ 495.0 Weighted average interest rate 1.52 % 1.22 % 1.45 % (a) Washington Gas has the right to request extensions with the banks’ approval. Washington Gas’ revolving credit facility permits it to borrow an additional $100 million , with the banks’ approval, for a total of $450 million . (b) WGL includes WGL Holdings and all subsidiaries other than Washington Gas. |
Long Term Debt (Tables)
Long Term Debt (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Long Term Debt Outstanding | The following tables show the outstanding notes as of September 30, 2018 and 2017 . Long-Term Debt Outstanding ($ In millions) WGL (a) Washington Gas Total Consolidated September 30, 2018 Long-term debt (b) $ 850.0 $ 1,146.0 $ 1,996.0 Unamortized discount (1.4 ) (2.9 ) (4.3 ) Unamortized debt expenses (3.7 ) (8.1 ) (11.8 ) Total Long-Term Debt $ 844.9 $ 1,135.0 $ 1,979.9 Weighted average interest rate 3.06 % 4.89 % 4.11 % September 30, 2017 Long-term debt (b) $ 550.0 $ 1,146.0 $ 1,696.0 Unamortized discount (1.5 ) (3.0 ) (4.5 ) Unamortized debt expenses (2.1 ) (8.5 ) (10.6 ) Total Long-Term Debt $ 546.4 $ 1,134.5 $ 1,680.9 Weighted average interest rate 2.81 % 4.89 % 4.21 % (a) WGL includes WGL Holdings and all subsidiaries other than Washington Gas. (b) Includes Senior Notes and term loans for WGL and both MTNs and private placement notes for Washington Gas. Represents face value including current maturities. |
Long-Term Debt Issuances and Retirements | The following tables show long-term debt issuances and retirements for the years ended September 30, 2018 and 2017 . Long-Term Debt Issuances and Retirements ($ In millions) Principal (b) Interest Rate (f) Effective Cost( f) Nominal Maturity Date Year Ended September 30, 2018 WGL (a) Issuances: 11/29/2017 $ 300.0 1.88 % (c) 2.01 % 11/29/2019 3/14/2018 $ 250.0 2.66 % (d) 2.79 % 03/12/2020 Total consolidated issuances $ 550.0 WGL (a) Retirements: 02/18/2018 $ 250.0 1.24 % 1.24 % 2/18/2018 Total $ 250.0 Year Ended September 30, 2017 WGL (a) Issuances: 1/26/2017 $ 50.0 1.57 % (e) 1/26/2019 Total $ 50.0 Washington Gas Issuances: 9/18/2017 $ 200.0 3.80 % 9/15/2046 Total 200.0 Total consolidated issuances $ 250.0 (a) WGL includes WGL Holdings and all subsidiaries other than Washington Gas. (b) Represents face amount of notes. (c) Floating rate per annum and reset quarterly based on terms set forth in the prospectus supplement filed by WGL pursuant to Securities Act Rule 424 on November 27, 2017. (d) Floating rate per annum and reset quarterly based on terms set forth in the prospectus supplement filed by WGL pursuant to Securities Act Rule 424 on March 13, 2018. (e) Floating rate per annum that will be determined from time to time based on parameters set forth in the credit agreement. (f) Represents the interest rate and effective cost at the trade date of the debt. |
Long Term Debt Maturities | Maturities of long-term debt for each of the next five fiscal years and thereafter as of September 30, 2018 are summarized in the following table. Long-Term Debt Maturities (a) (In millions) WGL (b) Washington Gas Total 2019 $ 50.0 $ 50.0 $ 100.0 2020 650.0 50.0 700.0 2023 — 20.0 20.0 Thereafter 150.0 1,026.0 1,176.0 Total $ 850.0 $ 1,146.0 $ 1,996.0 Less: current maturities 50.0 50.0 100.0 Total non-current $ 800.0 $ 1,096.0 $ 1,896.0 (a) Excludes unamortized discounts and debt issuance costs of $ 5.1 million and $11.0 million at September 30, 2018 , for WGL and Washington Gas, respectively. (b) WGL includes WGL Holdings and all subsidiaries other than Washington Gas. |
Preferred Stock (Tables)
Preferred Stock (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |
Preferred Stock Table | The following table presents this information, as well as call prices for each preferred stock series outstanding. Preferred Stock Preferred Liquidation Preference Series Shares Per Share Call Price Outstanding Outstanding Involuntary Voluntary Per Share $4.80 150,000 $100 $101 $101 $4.25 70,600 $100 $105 $105 $5.00 60,000 $100 $102 $102 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Income Taxes [Line Items] | |
Components of Income Tax Expense | The following tables provide the components of income tax expenses for WGL and Washington Gas for the years ended September 30, 2018, 2017 and 2016. WGL Holdings, Inc. Components of Income Tax Expense (Benefit) Years Ended September 30, (In thousands) 2018 2017 2016 INCOME TAX EXPENSE Current: Federal $ (1,684 ) $ 430 $ (57,690 ) State 649 3,267 (1,983 ) Total current (1,035 ) 3,697 (59,673 ) Deferred: Federal Accelerated depreciation (28,498 ) 83,637 93,175 Other (32,490 ) 13,042 49,638 State Accelerated depreciation 12,399 15,097 12,993 Other 3,570 3,190 8,073 Total deferred (a) (45,019 ) 114,966 163,879 Amortization of investment tax credits (7,398 ) (7,504 ) (6,132 ) Total income tax expense (benefit) $ (53,452 ) $ 111,159 $ 98,074 |
Reconciliation Between the Statutory Federal Income Tax Rate and Effective Tax Rate | The effective income tax rate from continuing operations varies from the U.S. Federal statutory rate principally due to the following: WGL Holdings, Inc. Reconciliation Between the Statutory Federal Income Tax Rate and Effective Tax Rate Years Ended September 30, ($ In thousands) 2018 2017 2016 Income taxes at statutory federal income tax rate (a) $ (6,784 ) 21.00 % $ 101,157 35.00 % $ 93,253 35.00 % Increase (decrease) in income taxes resulting from: Accelerated depreciation less amount deferred 1,079 (3.34 ) 2,213 0.77 2,445 0.92 Allowance for funds used during construction (1,891 ) 5.85 (1,625 ) (0.56 ) (1,537 ) (0.58 ) Amortization of investment tax credits (7,398 ) 22.90 (7,504 ) (2.60 ) (6,132 ) (2.30 ) Amortization of excess deferred taxes (9,889 ) 30.61 (201 ) (0.07 ) — — Cost of removal (1,561 ) 4.83 (2,944 ) (1.02 ) (3,722 ) (1.40 ) State income taxes-net of federal benefit 3,976 (12.31 ) 13,472 4.66 12,969 4.87 Release of valuation allowance (2,188 ) 6.77 — — — — Merger related costs 2,044 (6.33 ) 2,292 0.79 — — Non-controlling interest 6,199 (19.19 ) 5,627 1.95 — — Re-measurement (28,743 ) 88.97 — — — — ASU 2016-09 adoption (3,521 ) 10.90 — — — — Return to provision adjustment (6,279 ) 19.44 (3,062 ) (1.06 ) (1,012 ) (0.38 ) Other items-net 1,504 (4.66 ) 1,734 0.60 1,810 0.68 Total income tax expense (benefit) and effective tax rate $ (53,452 ) 165.44 % $ 111,159 38.46 % $ 98,074 36.81 % (a) As a result of the merger with AltaGas, the Company is subject to two separate short periods and accompanying returns. The first period through July 6, 2018 is subjected to a higher, blended federal statutory rate. Due to the net operating loss for federal tax purposes through September 30, 2018, all current year activity is ultimately taxed at 21%. As such, for presentational purposes, we applied a 21% rate to the entire fiscal year activity. |
Components of Deferred Income Tax Assets (Liabilities) | The following tables provide the components of accumulated deferred income tax assets (liabilities) for WGL and Washington Gas at September 30, 2018 and 2017. WGL Holdings, Inc. Components of Accumulated Deferred Income Tax Assets (Liabilities) (In thousands) 2018 2017 Deferred income tax assets: Pensions $ 43,553 $ 42,593 Uncollectible accounts 3,714 10,617 Inventory overheads 4,090 6,617 Employee compensation and benefits 52,526 45,202 Income taxes recoverable through future rates 121,145 — Derivatives 10,787 13,802 Deferred gas costs — 1,485 Solar grant/investment tax credit 58,514 61,773 Tax credit carry forward 158,167 160,077 Net operating loss 114,625 30,278 Other (a) 5,346 2,693 Total assets 572,467 375,137 Deferred income tax liabilities: Other post-retirement benefits 106,700 90,031 Accelerated depreciation and other plant related items 756,022 1,068,951 Losses/gains on reacquired debt 581 1,047 Income taxes recoverable through future rates — 33,502 Deferred gas costs 3,041 — Partnership basis differences 41,459 46,968 Valuation allowances — 2,188 Total liabilities 907,803 1,242,687 Net accumulated deferred income tax assets (liabilities) $ (335,336 ) $ (867,550 ) (a) For the fiscal years ended September 30, 2018 and 2017, amount includes $ 1.0 million and $ 0.5 million , respectively, in deferred income tax assets reported in "Deferred charges and other assets" on the consolidated balance sheet |
Unrecognized Tax Benefits | The following table summarizes the change in unrecognized tax benefits during fiscal year 2018, 2017, 2016 and our total unrecognized tax benefits at September 30, under the provisions of ASC Topic 740, Income Taxes: Unrecognized Tax Benefits (In thousands) 2018 2017 2016 Total unrecognized tax benefits, October 1, $ 48,009 $ 42,283 $ 38,627 Increases in tax positions relating to current year 10,947 10,766 10,645 Decreases in tax positions relating to prior year (15,389 ) (5,040 ) (6,989 ) Total unrecognized tax benefits, September 30, $ 43,567 $ 48,009 $ 42,283 |
Washington Gas Light Company | |
Income Taxes [Line Items] | |
Components of Income Tax Expense | Washington Gas Light Company Components of Income Tax Expense (Benefit) Years Ended September 30, (In thousands) 2018 2017 2016 INCOME TAX EXPENSE Current: Federal $ — $ 1,722 $ (48,064 ) State 1,274 1,283 (2,957 ) Total current 1,274 3,005 (51,021 ) Deferred: Federal Accelerated depreciation (27,846 ) 83,009 93,385 Other (8,485 ) (18,419 ) 13,826 State Accelerated depreciation 12,533 15,033 13,081 Other (2,637 ) (2,037 ) 3,190 Total deferred (a) (26,435 ) 77,586 123,482 Amortization of investment tax credits (702 ) (751 ) (795 ) Total income tax expense $ (25,863 ) $ 79,840 $ 71,666 |
Reconciliation Between the Statutory Federal Income Tax Rate and Effective Tax Rate | Washington Gas Light Company Reconciliation Between the Statutory Federal Income Tax Rate and Effective Tax Rate Years Ended September 30, ($ In thousands) 2018 2017 2016 Income taxes at statutory federal income tax rate (a) $ (11,026 ) 21.00 % $ 74,071 35.00 % $ 64,673 35.00 % Increase (decrease) in income taxes resulting from: Accelerated depreciation less amount deferred 1,079 (2.06 ) 2,213 1.05 2,445 1.32 Allowance for funds used during construction (70 ) 0.13 (291 ) (0.14 ) (509 ) (0.28 ) Amortization of investment tax credits (703 ) 1.34 (751 ) (0.35 ) (795 ) (0.43 ) Amortization of excess deferred taxes (9,798 ) 18.66 (196 ) (0.09 ) — — Cost of removal (1,561 ) 2.97 (2,944 ) (1.39 ) (3,722 ) (2.01 ) State income taxes-net of federal benefit (2,659 ) 5.06 9,482 4.48 8,310 4.50 Consolidated tax sharing allocation — — — — 1,073 0.58 Re-measurement 7,031 (13.39 ) — — — — ASU 2016-09 adoption (3,223 ) 6.14 — — — — Return to provision adjustment (4,669 ) 8.89 (4,859 ) (2.30 ) (1,353 ) (0.73 ) Other items-net (264 ) 0.50 3,115 1.47 1,544 0.84 Total income tax expense (benefit) and effective tax rate $ (25,863 ) 49.24 % $ 79,840 37.73 % $ 71,666 38.79 % (a) As a result of the merger with AltaGas, the Company is subject to two separate short periods and accompanying returns. The first period through July 6, 2018 is subjected to a higher, blended federal statutory rate. Due to the net operating loss for federal tax purposes through September 30, 2018, all current year activity is ultimately taxed at 21%. As such, for presentational purposes, we applied a 21% rate to the entire fiscal year activity |
Components of Deferred Income Tax Assets (Liabilities) | Washington Gas Light Company Components of Accumulated Deferred Income Tax Assets (Liabilities) (In thousands) 2018 2017 Deferred income tax assets: Pensions $ 43,071 $ 41,907 Uncollectible accounts 1,131 7,815 Inventory overheads 4,090 6,617 Employee compensation and benefits 51,006 47,479 Derivatives 7,435 11,187 Income taxes recoverable through future rates 121,357 — Deferred gas costs — 1,485 Net operating loss 90,943 — Total assets 319,033 116,490 Deferred income tax liabilities: Other post-retirement benefits 106,289 89,494 Accelerated depreciation and other plant related items 615,499 876,235 Losses/gains on reacquired debt 581 1,047 Income taxes recoverable through future rates — 33,324 Deferred gas costs 3,041 — Other 3,430 4,775 Total liabilities 728,840 1,004,875 Net accumulated deferred income tax assets (liabilities) $ (409,807 ) $ (888,385 ) |
Pension and Other Post-Retire_2
Pension and Other Post-Retirement Benefit Plans (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |
Post Retirement Benefits | The following table provides certain information about Washington Gas’ post-retirement benefits: Post-Retirement Benefits Health and Life (In millions) Pension Benefits (a) Benefits Year Ended September 30, 2018 2017 2018 2017 Change in projected benefit obligation (b) Benefit obligation at beginning of year $ 1,047.5 $ 1,069.3 $ 309.0 $ 324.3 Service cost 14.9 16.5 5.3 5.8 Interest cost 39.6 38.4 11.7 11.7 Change in plan benefits — — — 1.1 Actuarial loss (gain) (65.2 ) (28.2 ) (28.7 ) (18.9 ) Retiree contributions and rebates — — 1.9 1.8 Benefits paid (47.0 ) (48.5 ) (15.9 ) (16.8 ) Projected benefit obligation at end of year (b) $ 989.8 $ 1,047.5 $ 283.3 $ 309.0 Change in plan assets Fair value of plan assets at beginning of year $ 872.5 $ 850.0 $ 540.5 $ 505.0 Actual return on plan assets 38.8 68.6 43.0 48.1 Company contributions 1.8 4.4 5.0 8.2 Retiree contributions and rebates — — 1.9 1.8 Expenses (2.2 ) (2.0 ) (5.2 ) (5.8 ) Benefits paid (47.0 ) (48.5 ) (15.9 ) (16.8 ) Fair value of plan assets at end of year $ 863.9 $ 872.5 $ 569.3 $ 540.5 Funded status at end of year $ (125.9 ) $ (175.0 ) $ 286.0 $ 231.5 Total amounts recognized on balance sheet Non-current asset $ — $ — $ 286.0 $ 231.5 Current liability (20.2 ) (6.5 ) — — Non-current liability (105.7 ) (168.5 ) — — Total recognized $ (125.9 ) $ (175.0 ) $ 286.0 $ 231.5 (a) The DB SERP and DB Restoration, included in pension benefits in the table above, does not include the amounts funded in rabbi trust. (b) For the Health and Life Benefits, the change in projected benefit obligation represents the accumulated benefit obligation. |
Projected and accumulated benefit obligation | The following table provides the projected benefit obligation (PBO) and accumulated benefit (ABO) for the qualified pension plan, DB SERP and DB Restoration at September 30, 2018 and 2017 . Projected and accumulated benefit obligation (In millions) Qualified Pension Plan DB SERP DB Restoration September 30, 2018 2017 2018 2017 2018 2017 Projected benefit obligation $ 923.6 $ 983.1 $ 62.2 $ 60.2 $ 4.0 $ 4.2 Accumulated benefit obligation $ 859.1 $ 905.8 $ 60.7 $ 57.5 $ 3.0 $ 3.0 |
Unrecognized Costs Income Recorded On Balance Sheet | The following table provides amounts recorded to regulatory assets, regulatory liabilities and accumulated other comprehensive loss/(income) at September 30, 2018 and 2017 : Unrecognized Costs/Income Recorded on the Balance Sheet (In millions) Pension Benefits Health and Life Benefits September 30, 2018 2017 2018 2017 Actuarial net loss (gain) $ 61.0 $ 136.1 $ (64.5 ) $ (21.8 ) Prior service cost (credit) 0.9 1.2 (107.2 ) (124.9 ) Total $ 61.9 $ 137.3 $ (171.7 ) $ (146.7 ) Regulatory asset (liability) (a) $ 48.2 $ 119.6 $ (160.5 ) $ (137.2 ) Pre-tax accumulated other comprehensive loss (gain) (b) 13.7 17.7 (11.2 ) (9.5 ) Total $ 61.9 $ 137.3 $ (171.7 ) $ (146.7 ) (a) The regulatory liability recorded on our balance sheets at September 30, 2018 and 2017 is net of a deferred income tax benefit of $ 0.2 million and $2.2 million , respectively. (b) The total amount of accumulated other comprehensive loss recorded on our balance sheets at September 30, 2018 and 2017 is net of an income tax benefit of $0.7 million and $3.6 million , respectively. |
Amount Recognized During Current Year | The following table provides amounts that are included in regulatory assets/liabilities and accumulated other comprehensive loss associated with our unrecognized pension and other post-retirement benefit costs that were recognized as components of net periodic benefit cost during fiscal year 2018 . Amounts Recognized During Fiscal Year 2018 Regulatory assets/liabilities Accumulated other comprehensive loss (In millions) Pension Benefits Health and Life Benefits Pension Benefits Health and Life Benefits Actuarial net loss $ 13.5 $ — $ 2.1 $ — Prior service cost (credit) 0.2 (16.5 ) 0.1 (1.1 ) Total $ 13.7 $ (16.5 ) $ 2.2 $ (1.1 ) |
Amount Recognized During Next Fiscal Year | The following table provides amounts that are included in regulatory assets/liabilities and accumulated other comprehensive loss associated with our unrecognized pension and other post-retirement benefit costs that are expected to be recognized as components of net periodic benefit cost during fiscal year 2019 Amounts to be Recognized During Fiscal Year 2019 Regulatory assets/liabilities Accumulated other comprehensive loss (In millions) Pension Benefits Health and Life Benefits Pension Benefits Health and Life Benefits Actuarial net loss $ 4.0 $ — $ 1.5 $ — Prior service cost (credit) 0.1 (15.7 ) 0.1 (1.1 ) Total $ 4.1 $ (15.7 ) $ 1.6 $ (1.1 ) |
Components of Net Periodic Benefit Costs (Income) | The components of the net periodic benefit costs (income) for fiscal years ended September 30, 2018 , 2017 and 2016 related to pension and other post-retirement benefits were as follows: Components of Net Periodic Benefit Costs (Income) (In millions) Pension Benefits Health and Life Benefits Year Ended September 30, 2018 2017 2016 2018 2017 2016 Service cost $ 14.9 $ 16.5 $ 14.2 $ 5.3 $ 5.8 $ 4.6 Interest cost 39.6 38.4 41.3 11.7 11.7 13.1 Expected return on plan assets (42.3 ) (41.0 ) (40.9 ) (23.7 ) (22.1 ) (20.4 ) Recognized prior service cost (credit) 0.3 0.3 0.3 (17.6 ) (17.7 ) (17.7 ) Recognized actuarial loss 15.6 22.0 16.9 — 1.9 1.2 Net periodic benefit cost 28.1 36.2 31.8 (24.3 ) (20.4 ) (19.2 ) Amount allocated to construction projects (4.7 ) (6.4 ) (5.6 ) 4.0 4.6 4.1 Amount deferred as regulatory asset (liability)-net 6.9 6.9 7.1 — — (0.2 ) Amount charged (credited) to expense $ 30.3 $ 36.7 $ 33.3 $ (20.3 ) $ (15.8 ) $ (15.3 ) |
Benefit Obligations Assumptions/Net Periodic Benefits Assumptions | The weighted average assumptions used to determine net periodic benefit obligations and net periodic benefit costs were as follows: Benefit Obligations Assumptions Pension Benefits Health and Life Benefits September 30, 2018 2017 2018 2017 Discount rate (a) 4.30%-4.40% 3.60%-3.90% 4.40 % 3.90 % Rate of compensation increase 3.50%-4.10% 3.50%-4.10% 4.10 % 4.10 % (a) The increase in the discount rate in fiscal year 2018 compared to prior year primarily reflects the increase in long-term interest rates. Net Periodic Benefit Cost Assumptions Pension Benefits Health and Life Benefits Years Ended September 30, 2018 2017 2016 2018 2017 2016 Discount rate (a) 3.60%-3.90% 3.40%-3.70% 4.10%-4.50% 3.90 % 3.70 % 4.50 % Expected long-term return on plan assets (b) 5.75 % 5.75 % 6.00 % 5.50 % 5.50 % 5.75 % Rate of compensation increase (c) 3.50%-4.10% 3.50%-4.10% 3.50%-4.10% 4.10 % 4.10 % 4.10 % (a) The changes in the discount rates over the last three fiscal years primarily reflect the changes in long-term interest rates. (b) For health and life benefits, the expected returns for certain funds may be lower due to certain portions of income that are subject to an assumed income tax rate of 42.2% . (c) The changes in the rate of compensation reflects the best estimates of actual future compensation levels including consideration of general price levels, productivity, seniority, promotion, and other factors such as inflation rates. |
Healthcare Trends | Healthcare Trend (In millions) One Percentage-Point Increase One Percentage-Point Decrease Increase (decrease) total service and interest cost components $ 0.6 $ (0.5 ) Increase (decrease) post-retirement benefit obligation $ 5.2 $ (4.6 ) |
Expected Benefit Payments | Expected benefit payments, including benefits attributable to estimated future employee service, which are expected to be paid over the next ten years are as follows: Expected Benefit Payments (In millions) Pension Benefits Health and Life Benefits 2019 $ 68.2 $ 16.6 2020 53.1 15.9 2021 55.1 15.9 2022 56.2 16.0 2023 58.4 16.1 2024—2028 293.8 81.5 |
Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension and OPEB Plan Assets | The following tables present the fair value of the pension plan assets and health and life insurance plan assets by asset category as of September 30, 2018 and 2017 : Pension Plan Assets % of ($ In millions) Level 1 Level 2 Level 3 Total Total At September 30, 2018 Cash and cash equivalents $ 2.2 $ — $ — $ 2.2 0.3 % Equity securities Preferred Securities — 2.1 — 2.1 0.2 Fixed income securities U.S. Treasuries — 127.6 — 127.6 14.8 U.S. Corporate Debt — 227.8 — 227.8 26.4 U.S. Agency Obligations and Government Sponsored Entities — 28.3 — 28.3 3.3 Asset-Backed Securities — 0.5 — 0.5 0.1 Municipalities — 8.3 — 8.3 1.0 Non-U.S. Corporate Debt — 47.1 — 47.1 5.5 Repurchase Agreement (a) — — — — — Other (b) — 5.2 — 5.2 0.6 Mutual Funds (c) 42.4 — — 42.4 4.9 Derivatives (d) — 1.1 — 1.1 0.1 Total investments in the fair value hierarchy $ 44.6 $ 448.0 $ — $ 492.6 57.2 % Investments measured at net asset value using the NAV practical expedient (e) Commingled Funds and Pooled Separate Accounts (f) 329.3 38.0 % Private Equity/Limited Partnership (g) 39.1 4.5 % Total fair value of plan investments 861.0 99.7 % Net receivable (h) 2.9 0.3 Total plan assets at fair value (i) $ 863.9 100.0 % Pension Plan Assets % of ($ In millions) Level 1 Level 2 Level 3 Total Total At September 30, 2017 Cash and cash equivalents $ 0.7 $ — $ — $ 0.7 0.1 % Equity securities Preferred Securities — 0.6 — 0.6 0.1 Fixed income securities U.S. Treasuries — 140.9 — 140.9 16.2 U.S. Corporate Debt — 232.3 — 232.3 26.6 U.S. Agency Obligations and Government Sponsored Entities — 20.0 — 20.0 2.3 Asset-Backed Securities — 2.0 — 2.0 0.2 Municipalities — 14.9 — 14.9 1.7 Non-U.S. Corporate Debt — 48.1 — 48.1 5.5 Repurchase Agreement (a) 3.7 3.7 0.4 Other (b) — 6.7 — 6.7 0.8 Mutual Funds (c) 41.4 — — 41.4 4.7 Derivatives (d) — 1.9 — 1.9 0.2 Total investments in the fair value hierarchy $ 42.1 $ 471.1 $ — $ 513.2 58.8 % Investments measured at net asset value using the NAV practical expedient (e) Commingled Funds and Pooled Separate Accounts (f) $ 324.4 37.2 % Private Equity/Limited Partnership (g) $ 37.6 4.3 % Total fair value of plan investments 875.2 100.3 % Net payable (h) (2.7 ) (0.3 ) Total plan assets at fair value $ 872.5 100.0 % (a) This category includes Treasury Bills with a pre-commitment from the counterparty to repurchase the same securities on the next business day at an agreed-upon price. (b) This category primarily includes non-U.S. government bonds as of September 30, 2018 and 2017 . (c) At September 30, 2018 and 2017 , the investment in a mutual fund consisted primarily of common stock of non-U.S. based companies. (d) At September 30, 2018 and 2017 , this category included a combination of long-term U.S. Treasury interest rate future contracts, currency forwards, currency option interest rate swaps, and put and call options on both interest rate swaps and credit default swap index products. (e) In accordance with ASC Topic 820, these investments are measured at fair value using NAV per share as a practical expedient and, therefore, have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliations of the fair value hierarchy to the statements of net assets available for plan benefits. (f) As of September 30, 2018 and 2017 , investments in commingled funds and a pooled separate account consisted of approximately 90% common stock U.S companies; 8% income producing properties located in the United States; and 2% short-term money market investments. (g) At September 30, 2018 and 2017 , investments in a private equity/limited partnership consisted of common stock of international companies. (h) At September 30, 2018 and 2017 , this net payable primarily represents pending trades for investments purchased net of pending trades for investments sold and interest receivable. (i) This table does not include $20.2 million rabbi trust investments located in "Current Assets-Other", and $44.8 million rabbi trust investments located in "Deferred Charges and Other Assets-Other" on our consolidated balance sheets. Refer to Note 14— Fair Value Measurements for fair value of rabbi trust investments. |
Other post-retirement benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension and OPEB Plan Assets | Healthcare and Life Insurance Plan Assets % of ($ In millions) Level 1 Level 2 Level 3 Total Total At September 30, 2018 Cash and Cash Equivalents $ 2.9 $ — $ — $ 2.9 0.5 % Fixed Income Securities U.S Agency Obligations — 1.9 — 1.9 0.3 U.S. Treasuries — 50.1 — 50.1 8.8 U.S. Corporate Debt — 55.0 — 55.0 9.8 Municipalities — 4.7 — 4.7 0.8 Non-U.S. Corporate Debt — 9.1 — 9.1 1.6 Other (a) — 3.4 — 3.4 0.6 Total investments in the fair value hierarchy $ 2.9 $ 124.2 $ — $ 127.1 22.3 % Investments measured at net asset value using the NAV practical expedient (b) Commingled Funds (c) 441.6 77.6 % Total fair value of plan investments 568.7 99.9 % Net receivable (d) 0.6 0.1 Total plan assets at fair value $ 569.3 100.0 % At September 30, 2017 Cash and Cash Equivalents $ 2.6 $ — $ — $ 2.6 0.5 % Fixed Income Securities U.S Agency Obligations — 1.7 — 1.7 0.3 U.S. Treasuries — 36.0 — 36.0 6.7 U.S. Corporate Debt — 41.9 — 41.9 7.8 Municipalities — 3.6 — 3.6 0.7 Non-U.S. Corporate Debt — 7.2 — 7.2 1.3 Other (a) — 2.8 — 2.8 0.5 Total investments in the fair value hierarchy $ 2.6 $ 93.2 $ — $ 95.8 17.8 % Investments measured at net asset value using the NAV practical expedient (b) Commingled Funds (c) 444.0 82.1 % Total fair value of plan investments 539.8 99.9 % Net receivable (d) 0.7 0.1 Total plan assets at fair value $ 540.5 100.0 % (a) At September 30, 2018 and 2017 , this category consisted primarily of non-U.S. government bonds. (b) In accordance with ASC Topic 820, these investments are measured at fair value using Net Asset Value (NAV) per share as a practical expedient and, therefore, have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliations of the fair value hierarchy to the statements of net assets available for plan benefits. (c) At September 30, 2018 , investments held by commingled funds in which the plan invests consisted primarily of 58% of common stock of large-cap U.S. companies, 17% of U.S. Government fixed income securities and 25% of corporate bonds. At September 30, 2017 , investments held by commingled funds in which the plan invests consisted primarily of 67% of common stock of large-cap U.S. companies, 13% of U.S. Government fixed income securities and 20% of corporate bonds. (d) At September 30, 2018 and 2017 , this net receivable primarily represents pending trades for investments sold and interest receivable net of pending trades for investments purchased. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Performance Share Activity | The following table summarizes information regarding performance share activity during the fiscal year ended September 30, 2018 . Performance Share Activity Year Ended September 30, 2018 Number of Shares Weighted Average Grant- Date Fair Value Non-vested and outstanding, beginning of year 274,882 $ 57.05 Granted 64,796 84.20 Settled (105,748 ) 44.44 Accelerated due to merger (159,778 ) 64.94 Cancelled/forfeited (10,074 ) 66.24 Converted to a Cash Award (a) (64,078 ) $ 88.25 Non-vested and outstanding, end of year (a) — $ — (a) Due to the modification event, these shares were converted to a cash award at target and are no longer performance-based. |
Performance Unit Activity | The following table summarizes information regarding performance unit activity during the fiscal year ended September 30, 2018 . Performance Unit Activity Year Ended September 30, 2018 Number of Units Non-vested and outstanding, beginning of year 14,631,998 Granted 5,456,077 Settled (4,454,200 ) Accelerated due to merger (9,615,564 ) Cancelled/forfeited (622,690 ) Converted to a Cash Award (a) (5,395,621 ) Non-vested and outstanding, end of year (a) — (a) Due to the modification event, these units are no longer performance-based and were converted to a fixed cash amount at a value of $1.00 per unit. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies [Line Items] | |
Schedule of Future Minimum Rental Payments for Operating Leases | Minimum future rental payments under operating leases over the next five years and thereafter are as follows: Minimum Payments Under Operating Leases (a) (In millions) 2019 $ 5.6 2020 9.2 2021 10.1 2022 9.6 2023 9.7 Thereafter 86.6 Total $ 130.8 |
Washington Gas Light Company | |
Commitments and Contingencies [Line Items] | |
Long-term Purchase Commitment | The following table summarizes the minimum contractual payments that Washington Gas will make under its pipeline transportation, storage and peaking contracts, as well as minimum contractual payments to purchase natural gas at prices based on market conditions during the next five fiscal years and thereafter. Washington Gas Contract Minimums (In millions) Pipeline Contracts (a) Gas Purchase Commitments (b) 2019 $ 482.4 $ 439.6 2020 372.6 387.0 2021 364.7 362.2 2022 361.0 348.2 2023 360.5 327.7 Thereafter 1,192.9 2,672.5 Total $ 3,134.1 $ 4,537.2 (a) Represents minimum payments for natural gas transportation, storage and peaking contracts that have expiration dates through fiscal year 2045 . (b) Includes known and reasonably likely commitments to purchase natural gas. Cost estimates are based on forward market prices at September 30, 2018 . |
Non Utility | |
Commitments and Contingencies [Line Items] | |
Long-term Purchase Commitment | The following table summarizes the minimum commitments and contractual obligations of WGL Energy Services and WGL Midstream for the next five fiscal years and thereafter. Contract Minimums WGL Energy Services WGL Midstream (In millions) Gas Purchase Commitments (a) Pipeline Contracts (b) Electric Purchase Commitments (c) Gas Purchase Commitments (d) Pipeline Contracts (b) Total 2019 $ 190.4 $ 3.2 $ 328.8 $ 1,203.2 $ 216.6 $ 1,942.2 2020 100.2 1.7 213.8 1,279.9 220.3 1,815.9 2021 42.0 1.1 97.0 1,156.9 209.4 1,506.4 2022 12.2 0.3 32.9 1,111.3 205.3 1,362.0 2023 3.3 0.3 1.9 1,113.2 197.1 1,315.8 Thereafter 0.4 0.3 0.3 17,740.2 2,174.1 19,915.3 Total $ 348.5 $ 6.9 $ 674.7 $ 23,604.7 $ 3,222.8 $ 27,857.6 (a) Represents fixed price commitments with city gate equivalent deliveries. (b) Represents minimum payments for natural gas transportation and storage contracts that have expiration dates through fiscal year 2044. (c) Represents electric purchase commitments that are based on existing fixed price and fixed volume contracts. Includes $31.6 million of commitments related to renewable energy credits. (d) Includes known and reasonably likely commitments to purchase natural gas. Cost estimates are based on forward market prices as of September 30, 2018 . Certain of our gas purchase agreements have optionality, which may cause increases in these commitments. |
Derivative and Weather Relate_2
Derivative and Weather Related Instruments (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Absolute Notional Amounts of Open Positions on Derivative Instruments | At September 30, 2018 and 2017 , respectively, the absolute notional amounts of our derivatives were as follows: Absolute Notional Amounts of Open Positions on Derivative Instruments Derivative transactions Notional Amounts September 30, 2018 WGL Holdings Washington Gas Natural Gas (In millions of therms) Asset optimization & trading 26,943.0 13,580.0 Retail sales 110.8 — Other risk-management activities 1,421.8 1,066.0 Electricity (In millions of kWhs) Retail sales 8,449.2 — Other risk-management activities (a) 27,833.9 — Interest Rate Swaps (In millions of dollars) $ — $ — September 30, 2017 Natural Gas (In millions of therms) Asset optimization & trading 21,663.5 11,223.0 Retail sales 124.3 — Other risk-management activities 1,546.7 1,181.0 Electricity (In millions of kWhs) Retail sales 10,011.7 — Other risk-management activities (a) 22,962.1 — Interest Rate Swaps (In millions of dollars) 250.0 $ — (a) Comprised primarily of financial swaps, financial transmission rights and physical forward purchases. |
Balance Sheet Classification of Derivative Instruments | The following tables present the balance sheet classification for all derivative instruments as of September 30, 2018 and 2017 . WGL Holdings, Inc. Balance Sheet Classification of Derivative Instruments (b) (In millions) As of September 30, 2018 Gross Derivative Assets Gross Derivative Liabilities Netting of Collateral Total (a) Current Assets—Derivatives $ 39.6 $ (3.2 ) $ — $ 36.4 Deferred Charges and Other Assets—Derivatives 21.8 (1.2 ) — 20.6 Accounts Payable — (0.9 ) — (0.9 ) Current Liabilities—Derivatives 23.1 (55.6 ) 9.8 (22.7 ) Deferred Credits—Derivatives 9.8 (142.1 ) 11.8 (120.5 ) Total $ 94.3 $ (203.0 ) $ 21.6 $ (87.1 ) As of September 30, 2017 Current Assets—Derivatives $ 26.6 $ (11.3 ) $ — $ 15.3 Deferred Charges and Other Assets—Derivatives 38.9 (0.4 ) (0.1 ) 38.4 Accounts Payable 1.0 1.0 Current Liabilities—Derivatives 10.9 (57.0 ) 2.1 (44.0 ) Deferred Credits—Derivatives 19.2 (148.8 ) 7.0 (122.6 ) Total $ 96.6 $ (217.5 ) $ 9.0 $ (111.9 ) Washington Gas Light Company Balance Sheet Classification of Derivative Instruments (b) (In millions) As of September 30, 2018 Gross Gross Netting of Total (a) Current Assets—Derivatives $ 17.8 $ (0.4 ) $ — $ 17.4 Deferred Charges and Other Assets—Derivatives 8.7 — — 8.7 Current Liabilities—Derivatives 2.6 (20.2 ) 2.8 (14.8 ) Deferred Credits—Derivatives (1.6 ) (102.6 ) — (104.2 ) Total $ 27.5 $ (123.2 ) $ 2.8 $ (92.9 ) As of September 30, 2017 Current Assets—Derivatives $ 7.5 $ (2.4 ) $ — $ 5.1 Deferred Charges and Other Assets—Derivatives 16.5 (0.3 ) — 16.2 Current Liabilities—Derivatives — (30.3 ) — (30.3 ) Deferred Credits—Derivatives — (112.3 ) — (112.3 ) Total $ 24.0 $ (145.3 ) $ — $ (121.3 ) (a) WGL has elected to offset the fair value of recognized derivative instruments against the right to reclaim or the obligation to return collateral for derivative instruments executed under the same master netting arrangement in accordance with ASC Topic 815. All recognized derivative contracts and associated financial collateral subject to a master netting arrangement or similar that is eligible for offset under ASC Topic 815 have been presented net in the balance sheet. (b) WGL and Washington Gas did not have derivative instruments outstanding that were designated as hedging instruments at September 30, 2018 or 2017 . |
Gains and (Losses) on Derivative Instruments | The following tables present all gains and losses associated with derivative instruments for the years ended September 30, 2018 , 2017 and 2016 . Gains and (Losses) on Derivative Instruments (In millions) WGL Holdings, Inc. Washington Gas Fiscal Year Ended September 30, 2018 2017 2016 2018 2017 2016 Recorded to income Operating revenues—non-utility $ (30.1 ) $ 30.8 $ 5.8 $ — $ — $ — Utility cost of gas (2.1 ) 50.1 12.1 (2.1 ) 50.1 12.1 Non-utility cost of energy-related sales 20.3 33.5 33.5 — — — Interest income (expense) 19.2 (5.8 ) (0.2 ) — — — Recorded to regulatory assets Gas costs (7.6 ) 77.2 13.9 (7.6 ) 77.2 13.9 Other (a) — — (7.3 ) — — (7.3 ) Recorded to other comprehensive income (b) (6.4 ) 49.6 (39.3 ) — — — Total $ (6.7 ) $ 235.4 $ 18.5 $ (9.7 ) $ 127.3 $ 18.7 (a) Represents the settlement of Washington Gas' forward starting interest rate swap in September 2016. (b) Represents the effective portion of our cash flow hedges. Includes $ 0.2 million , $ 0.2 million , and $ 0.2 million of amortization of the losses related to interest rate hedges for WGL for September 30, 2018 , 2017 , and 2016 respectively. |
Collateral Not Offset Against Derivative Assets and Liabilities | The table below presents collateral not offset against derivative assets and liabilities at September 30, 2018 and 2017 , respectively. Collateral Not Offset Against Derivative Assets and Liabilities (In millions) September 30, 2018 Collateral deposits posted with counterparties Cash collateral held representing an obligation Washington Gas $ 10.6 $ 2.7 WGL Energy Services 20.6 — WGL Midstream 28.9 0.4 September 30, 2017 Washington Gas $ 3.7 $ 0.1 WGL Energy Services 23.7 — WGL Midstream 44.4 1.6 |
Potential Collateral Requirements for Derivative Liabilities with Credit-Risk-Contingent Features | The following table shows the aggregate fair value of all derivative instruments with credit-related contingent features that are in a liability position, as well as the maximum amount of collateral that would be required if the most intrusive credit-risk-related contingent features underlying these agreements were triggered on September 30, 2018 and 2017 , respectively. Potential Collateral Requirements for Derivative Liabilities with Credit-Risk-Contingent Features (In millions) WGL Holdings, Inc. Washington Gas September 30, 2018 Derivative liabilities with credit-risk-contingent features $ 5.7 $ 0.4 Maximum potential collateral requirements 0.7 0.4 September 30, 2017 Derivative liabilities with credit-risk-contingent features $ 25.0 $ 2.8 Maximum potential collateral requirements 21.9 2.8 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Fair Value Measurements Under the Fair Value Hierarchy | The following tables set forth financial instruments recorded at fair value as of September 30, 2018 and 2017 , respectively. A financial instrument’s classification within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy. WGL Holdings, Inc. Fair Value Measurements Under the Fair Value Hierarchy (In millions) Level 1 Level 2 Level 3 Total At September 30, 2018 Assets Natural gas related derivatives $ — $ 26.7 $ 53.6 $ 80.3 Electricity related derivatives — 4.4 9.6 14.0 Total Assets $ — $ 31.1 $ 63.2 $ 94.3 Liabilities Natural gas related derivatives $ — $ (30.6 ) $ (147.8 ) $ (178.4 ) Electricity related derivatives — (0.1 ) (24.5 ) (24.6 ) Total Liabilities $ — $ (30.7 ) $ (172.3 ) $ (203.0 ) At September 30, 2017 Assets Natural gas related derivatives $ — $ 18.4 $ 52.8 $ 71.2 Electricity related derivatives — 0.1 15.5 15.6 Interest rate derivatives — 9.8 — 9.8 Total Assets $ — $ 28.3 $ 68.3 $ 96.6 Liabilities Natural gas related derivatives $ — $ (15.5 ) $ (167.4 ) $ (182.9 ) Electricity related derivatives — (4.1 ) (21.7 ) (25.8 ) Interest rate derivatives — (8.8 ) — (8.8 ) Total Liabilities $ — $ (28.4 ) $ (189.1 ) $ (217.5 ) |
Reconciliation of Fair Value Measurements Using Significant Level 3 Inputs | The following tables are a summary of the changes in the fair value of our derivative instruments that are measured at net fair value on a recurring basis in accordance with ASC Topic 820 using significant Level 3 inputs during the years ended September 30, 2018 and 2017 , respectively. Reconciliation of Fair Value Measurements Using Significant Level 3 Inputs WGL Holdings Inc. Washington Gas Light Company (In millions) Natural Gas Related Derivatives Electricity Related Derivatives Total Total - Natural Gas Fiscal Year Ended September 30, 2018 Balance at October 1, 2017 $ (114.6 ) $ (6.2 ) $ (120.8 ) $ (122.6 ) Realized and unrealized gains (losses) Recorded to income (22.4 ) (6.0 ) (28.4 ) (4.5 ) Recorded to regulatory assets—gas costs (10.0 ) — (10.0 ) (10.0 ) Transfers into Level 3 (6.8 ) — (6.8 ) (6.9 ) Transfers out of Level 3 9.6 — 9.6 8.9 Purchases — 2.9 2.9 — Settlements 50.0 (5.6 ) 44.4 41.0 Balance at September 30, 2018 $ (94.2 ) $ (14.9 ) $ (109.1 ) $ (94.1 ) Fiscal Year Ended September 30, 2017 Balance at October 1, 2016 $ (264.1 ) $ (9.1 ) $ (273.2 ) $ (251.6 ) Realized and unrealized gains (losses) Recorded to income 62.0 (7.6 ) 54.4 44.2 Recorded to regulatory assets—gas costs 69.7 — 69.7 69.7 Transfers into Level 3 (0.8 ) — (0.8 ) (0.4 ) Transfers out of Level 3 (0.7 ) — (0.7 ) (0.4 ) Purchases — 1.0 1.0 — Settlements 19.3 9.5 28.8 15.9 Balance at September 30, 2017 $ (114.6 ) $ (6.2 ) $ (120.8 ) $ (122.6 ) |
Quantitative Information about Level 3 Fair Value Measurements | The following table includes quantitative information about the significant unobservable inputs used in the fair value measurement of our Level 3 financial instruments and the respective fair values of the net derivative asset and liability positions, by contract type, as of September 30, 2018 and 2017 . Quantitative Information about Level 3 Fair Value Measurements (In millions) Net Fair Value Valuation Techniques Unobservable Inputs Range WGL Holdings, Inc. Natural gas related derivatives ($90.6) Discounted Cash Flow Natural Gas Basis Price (per dekatherm) ($1.810) - $3.886 ($3.6) Option Model Natural Gas Basis Price (per dekatherm) ($0.985) - $3.710 Annualized Volatility of Spot Market Natural Gas 37.5% - 901.0% Electricity related derivatives ($14.9) Discounted Cash Flow Electricity Congestion Price (per megawatt hour) ($6.257) - $64.650 Washington Gas Light Company Natural gas related derivatives ($94.1) Discounted Cash Flow Natural Gas Basis Price (per dekatherm) ($1.003) - $3.886 Net Fair Value Natural gas related derivatives ($112.4) Discounted Cash Flow Natural Gas Basis Price (per dekatherm) ($2.095) - $2.805 ($2.2) Option Model Natural Gas Basis Price (per dekatherm) ($2.095) - $2.358 Annualized Volatility of Spot Market Natural Gas 28.7% - 566.8% Electricity related derivatives ($6.2) Discounted Cash Flow Electricity Congestion Price (per megawatt hour) ($2.736) - $56.5 Washington Gas Light Company Natural gas related derivatives ($122.6) Discounted Cash Flow Natural Gas Basis Price (per dekatherm) ($1.928) - $2.805 |
Realized and Unrealized Gains (Losses) Recorded to Income for Level 3 Measurements | The table below sets forth the line items on the statements of income to which amounts are recorded for the fiscal years ended September 30, 2018 , 2017 and 2016 , respectively, related to fair value measurements using significant Level 3 inputs. Realized and Unrealized Gains (Losses) Recorded to Income for Level 3 Measurements WGL Holdings, Inc. Washington Gas Light Company (In millions) Natural Gas Related Derivatives Electricity Related Derivatives Total Total - Natural Gas Fiscal Year Ended September 30, 2018 Operating revenues—non-utility $ (17.5 ) $ (17.1 ) $ (34.6 ) $ — Utility cost of gas (4.5 ) — (4.5 ) (4.5 ) Non-utility cost of energy-related sales (0.4 ) 11.1 10.7 — Total $ (22.4 ) $ (6.0 ) $ (28.4 ) $ (4.5 ) Fiscal Year Ended September 30, 2017 Operating revenues—non-utility $ 12.2 $ (17.5 ) $ (5.3 ) $ — Utility cost of gas 44.2 — 44.2 44.2 Non-utility cost of energy-related sales 5.6 9.9 15.5 — Total $ 62.0 $ (7.6 ) $ 54.4 $ 44.2 Fiscal Year Ended September 30, 2016 Operating revenues—non-utility $ 8.2 $ (26.5 ) $ (18.3 ) $ — Utility cost of gas 4.0 — 4.0 4.0 Non-utility cost of energy-related sales 6.1 5.1 11.2 — Total $ 18.3 $ (21.4 ) $ (3.1 ) $ 4.0 |
Unrealized Gains (Losses) Recorded for Level 3 Measurements | Unrealized gains (losses) attributable to derivative assets and liabilities measured using significant Level 3 inputs were recorded as follows for the fiscal years ended September 30, 2018 , 2017 and 2016 , respectively: Unrealized Gains (Losses) Recorded for Level 3 Measurements WGL Holdings, Inc. Washington Gas Light Company (In millions) Natural Gas Related Derivatives Electricity Related Derivatives Total Total - Natural Gas Fiscal Year Ended September 30, 2018 Recorded to income Operating revenues—non-utility $ (14.6 ) $ (20.9 ) $ (35.5 ) $ — Utility cost of gas 2.3 — 2.3 2.3 Non-utility cost of energy-related sales 4.1 15.7 19.8 — Recorded to regulatory assets—gas costs 0.2 — 0.2 0.2 Total $ (8.0 ) $ (5.2 ) $ (13.2 ) $ 2.5 Fiscal Year Ended September 30, 2017 Recorded to income Operating revenues—non-utility $ 12.6 $ 0.8 $ 13.4 $ — Utility cost of gas 31.0 — 31.0 31.0 Non-utility cost of energy-related sales (0.4 ) 9.4 9.0 — Recorded to regulatory assets—gas costs 51.0 — 51.0 51.0 Total $ 94.2 $ 10.2 $ 104.4 $ 82.0 Fiscal Year Ended September 30, 2016 Recorded to income Operating revenues—non-utility $ 9.9 $ (2.3 ) $ 7.6 $ — Utility cost of gas 0.3 — 0.3 0.3 Non-utility cost of energy-related sales (0.4 ) 13.2 12.8 — Recorded to regulatory assets—gas costs (2.6 ) — (2.6 ) (2.6 ) Total $ 7.2 $ 10.9 $ 18.1 $ (2.3 ) |
Fair Value of Financial Instruments | The following tables presents the carrying amounts and estimated fair values of our financial instruments at September 30, 2018 and 2017 . WGL Holdings, Inc. Fair Value of Financial Instruments September 30, 2018 September 30, 2017 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value Money market funds (a) $ 117.9 $ 117.9 $ 11.8 $ 11.8 Commercial paper (b) $ 587.5 $ 585.7 $ 505.0 $ 505.0 Project financing (b) $ 82.2 $ 82.2 $ 54.8 $ 54.8 Long-term debt (c) $ 1,879.9 $ 1,912.8 $ 1,430.9 $ 1,577.3 Washington Gas Light Company Fair Value of Financial Instruments September 30, 2018 September 30, 2017 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value Money market funds (a) $ 67.3 $ 67.3 $ 4.8 $ 4.8 Commercial paper (b) $ 95.0 $ 95.0 $ 123.0 $ 123.0 Project financing (b) $ 68.5 $ 68.5 $ 43.8 $ 43.8 Long-term debt (c) $ 1,084.9 $ 1,120.2 $ 1,134.5 $ 1,271.0 (a) The balance as of September 30, 2018 includes $52.9 million and $2.3 million money market funds located in Cash and Cash equivalent for WGL and Washington Gas, respectively ,and $20.2 million rabbi trust investments located in "Current Assets-Other", and $44.8 million rabbi trust investments located in "Deferred Charges and Other Assets-Other" of the accompanying balance sheets for both WGL and Washington Gas . The balance as of September 2017 is located in Cash and Cash Equivalent. The amounts in cash and cash equivalent may be offset by outstanding checks. (b) Balance is located in notes payable in the accompanying balance sheets. (c) Includes adjustments for current maturities and unamortized discounts, as applicable. The following table summarizes the fair value amounts of SFEE’s assets and liabilities, as well as the estimated fair value of the non-controlling interest as of the date of consolidation. Fair Value of SFEE at Date of Consolidation (in millions) Fair Value Property, plant and equipment 10.1 Other assets $ 0.1 Total assets $ 10.2 Net assets $ 10.2 Non-controlling interest $ 0.6 WGSW equity interest $ 9.6 |
Washington Gas Light Company | |
Fair Value Measurements Under the Fair Value Hierarchy | Washington Gas Light Company Fair Value Measurements Under the Fair Value Hierarchy (In millions) Level 1 Level 2 Level 3 Total At September 30, 2018 Assets Natural gas related derivatives $ — $ 3.9 $ 23.6 $ 27.5 Total Assets $ — $ 3.9 $ 23.6 $ 27.5 Liabilities Natural gas related derivatives $ — $ (5.5 ) $ (117.7 ) $ (123.2 ) Total Liabilities $ — $ (5.5 ) $ (117.7 ) $ (123.2 ) At September 30, 2017 Assets Natural gas related derivatives $ — $ 7.0 $ 17.0 $ 24.0 Total Assets $ — $ 7.0 $ 17.0 $ 24.0 Liabilities Natural gas related derivatives $ — $ (5.7 ) $ (139.6 ) $ (145.3 ) Total Liabilities $ — $ (5.7 ) $ (139.6 ) $ (145.3 ) |
Operating Segment Reporting (Ta
Operating Segment Reporting (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Operating Segment Financial Information | The following tables present operating segment information for the fiscal years ended September 30, 2018 , 2017 and 2016 . Operating Segment Financial Information (In thousands) Operating Revenues (a) Depreciation and Amortization Equity in Earnings of Unconsolidated Affiliates EBIT Total Assets Capital Expenditures Equity Method Investments Fiscal Year Ended September 30, 2018 Regulated utility $ 1,248,063 $ 136,905 $ — $ 7,922 $ 5,178,937 $ 396,521 $ — Retail energy-marketing 1,009,698 1,084 — 31,491 420,171 386 — Commercial energy systems (b) 79,809 24,510 — 34,878 1,014,612 119,499 — Midstream energy services 40,551 17 (5,791 ) 29,422 1,038,380 — 769,998 Other activities — — — (40,000 ) 478,437 — — Eliminations (c) (36,356 ) 60 — (4,369 ) (882,450 ) — — Total consolidated $ 2,341,765 $ 162,576 $ (5,791 ) $ 59,344 $ 7,248,087 $ 516,406 $ 769,998 Fiscal Year Ended September 30, 2017 Regulated utility $ 1,166,968 $ 131,231 $ — $ 266,307 $ 4,984,121 $ 408,308 $ — Retail energy-marketing 1,107,151 1,141 — 53,195 513,415 614 — Commercial energy systems (b) 95,178 21,690 7,303 40,834 1,031,921 107,552 9,578 Midstream energy services 31,339 25 12,913 37,689 699,560 60 384,623 Other activities — — — (19,865 ) 409,938 — — Eliminations (c) (45,912 ) 51 — 965 (1,012,946 ) — — Total consolidated $ 2,354,724 $ 154,138 $ 20,216 $ 379,125 $ 6,626,009 $ 516,534 $ 394,201 Fiscal Year Ended September 30, 2016 Regulated utility $ 1,070,904 $ 116,129 $ — $ 228,219 $ 4,636,954 $ 393,501 $ — Retail energy-marketing 1,238,480 1,154 — 64,968 486,778 8,104 — Commercial energy systems 89,072 15,201 7,620 21,992 885,734 128,780 66,100 Midstream energy services 6,619 107 6,186 7,807 485,099 — 237,391 Other activities — — — (3,184 ) 273,738 — — Eliminations (c) (55,516 ) (25 ) — (504 ) (718,853 ) — — Total consolidated $ 2,349,559 $ 132,566 $ 13,806 $ 319,298 $ 6,049,450 $ 530,385 $ 303,491 (a) Operating revenue amounts in the “Eliminations” row represent total intersegment revenues associated with sales from the regulated utility segment to the retail energy-marketing segment. Midstream Energy Services’ cost of energy related sales is netted with its gross revenues. (b) As of August 2016, Commercial energy systems' operating revenues include revenues from non-controlling interest. Commercial energy systems' EBIT is adjusted for the effects of non-controlling interest. (c) Intersegment eliminations include any mark-to market valuations associated with trading activities between WGL Midstream and WGL Energy Services, intercompany loans and a timing difference between Commercial Energy Systems’ recognition of revenue for the sale of Renewable Energy Credits (RECs) to Retail Energy-Marketing and Retail Energy-Marketing’s recognition of the associated expense. Retail Energy-Marketing has recorded a portion of the REC’s purchased as inventory to be used in future periods at which time they will be expensed. |
Reconciliation From EBIT To Net Income Applicable To Common Stock | The following table provides a reconciliation from EBIT to net income applicable to common stock. Fiscal Year Ended September 30, (In thousands) 2018 2017 2016 Total consolidated EBIT $ 59,344 $ 379,125 $ 319,298 Interest expense 62,133 74,026 52,310 Income tax expense (benefit) (53,452 ) 111,159 98,074 Dividends on Washington Gas Light Company preferred stock 1,320 1,320 1,320 Net income applicable to common stock $ 49,343 $ 192,620 $ 167,594 |
Other Investment (Tables)
Other Investment (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Other Investments [Abstract] | |
Fair Value at date of consolidation | The following tables presents the carrying amounts and estimated fair values of our financial instruments at September 30, 2018 and 2017 . WGL Holdings, Inc. Fair Value of Financial Instruments September 30, 2018 September 30, 2017 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value Money market funds (a) $ 117.9 $ 117.9 $ 11.8 $ 11.8 Commercial paper (b) $ 587.5 $ 585.7 $ 505.0 $ 505.0 Project financing (b) $ 82.2 $ 82.2 $ 54.8 $ 54.8 Long-term debt (c) $ 1,879.9 $ 1,912.8 $ 1,430.9 $ 1,577.3 Washington Gas Light Company Fair Value of Financial Instruments September 30, 2018 September 30, 2017 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value Money market funds (a) $ 67.3 $ 67.3 $ 4.8 $ 4.8 Commercial paper (b) $ 95.0 $ 95.0 $ 123.0 $ 123.0 Project financing (b) $ 68.5 $ 68.5 $ 43.8 $ 43.8 Long-term debt (c) $ 1,084.9 $ 1,120.2 $ 1,134.5 $ 1,271.0 (a) The balance as of September 30, 2018 includes $52.9 million and $2.3 million money market funds located in Cash and Cash equivalent for WGL and Washington Gas, respectively ,and $20.2 million rabbi trust investments located in "Current Assets-Other", and $44.8 million rabbi trust investments located in "Deferred Charges and Other Assets-Other" of the accompanying balance sheets for both WGL and Washington Gas . The balance as of September 2017 is located in Cash and Cash Equivalent. The amounts in cash and cash equivalent may be offset by outstanding checks. (b) Balance is located in notes payable in the accompanying balance sheets. (c) Includes adjustments for current maturities and unamortized discounts, as applicable. The following table summarizes the fair value amounts of SFEE’s assets and liabilities, as well as the estimated fair value of the non-controlling interest as of the date of consolidation. Fair Value of SFEE at Date of Consolidation (in millions) Fair Value Property, plant and equipment 10.1 Other assets $ 0.1 Total assets $ 10.2 Net assets $ 10.2 Non-controlling interest $ 0.6 WGSW equity interest $ 9.6 |
Balance sheet location of consolidated investments | The carrying amounts and classification of the consolidated VIEs’ assets and liabilities included in our consolidated balance sheet at September 30, 2018 and September 30, 2017 are as follows: WGL Holdings, Inc. Balance Sheet Location of Consolidated Investments (in millions) September 30, 2018 September 30, 2017 Current assets $ 12.5 $ 4.4 Property, Plant and Equipment 248.8 121.7 Total assets $ 261.3 $ 126.1 Current liabilities 0.9 0.2 Deferred credits 1.7 0.8 Total liabilities $ 2.6 $ 1.0 |
Balance sheet location of unconsolidated investments | The following tables present summary information about our unconsolidated investments: WGL Holdings, Inc. Balance Sheet Location of Unconsolidated Investments Solar Pipelines (in millions) Non-VIEs (a) VIEs (b) Non-VIEs (c) Total September 30, 2018 Assets Investments in unconsolidated affiliates $ — $ 447.0 $ 323.0 $ 770.0 Total assets $ — $ 447.0 $ 323.0 $ 770.0 September 30, 2017 Assets Investments in unconsolidated affiliates $ 9.6 $ 146.7 $ 237.9 $ 394.2 Total assets $ 9.6 $ 146.7 $ 237.9 $ 394.2 (a)Balance relates to interest held in SFEE on September 30, 2017 (b)Balance relates to equity method investment in Meade. (c)Balance relates to equity method investments in Constitution, Mountain Valley Pipeline and Stonewall System. |
Summarized financial information equity method Investments | The amounts below represent the aggregate financial position and results of operations of 100 percent of each of WGL's equity method investments. WGL Holdings, Inc. Summarized Financial Statements (in thousands) As of September 30, 2018 2017 Current assets $ 1,298,488 $ 236,622 Non-current assets 3,902,251 1,646,752 Total assets $ 5,200,739 $ 1,883,374 Current liabilities $ 730,720 $ 63,068 Non-current liabilities 6,445 166 Total liabilities $ 737,165 $ 63,234 For the fiscal year ended September 30, 2018 2017 2016 Operating revenues $ 91,778 $ 85,999 $ 64,412 Operating income 64,160 47,580 26,580 Net income 157,760 64,685 33,161 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
Receivables and Payables from Associated Companies | The following table presents the receivables and payables from associated companies as of September 30, 2018 and September 30, 2017. Washington Gas Light Company Receivables / Payables from Associated Companies (In millions) September 30, 2018 September 30, 2017 Receivables from associated companies (a) $ 1.1 $ 32.4 Payables to associated companies (a) $ 16.4 $ 94.8 (a) The receivable and payable do not include the transactions related to shared service cost billed from AltaGas. |
Gas Balancing Service Charges | The following table shows the amounts Washington Gas charged WGL Energy Services for balancing services. Washington Gas - Gas Balancing Service Charges Years Ended September 30, (In millions) 2018 2017 2016 Gas balancing service charge $ 18.5 $ 23.6 $ 26.8 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following tables show the changes in accumulated other comprehensive income (loss) for WGL and Washington Gas by component for the fiscal years ended September 30, 2018 and 2017 . WGL Holdings, Inc. Changes in Accumulated Other Comprehensive Loss by Component September 30, (In thousands) 2018 2017 Beginning Balance $ (5,997 ) $ (38,539 ) Qualified cash flow hedging instruments (a) (6,341 ) 49,610 Change in prior service cost (b) (675 ) (767 ) Amortization of actuarial gain (b) 6,324 6,232 Current-period other comprehensive income (loss) (692 ) 55,075 Income tax expense related to other comprehensive income 1,523 22,533 Ending Balance $ (8,212 ) $ (5,997 ) (a) Cash flow hedging instruments represent interest rate swap agreements related to debt issuances. Refer to Note 13—Derivative and Weather-related Instruments for further discussion of the interest rate swap agreements. (b) These accumulated other comprehensive income (loss) components are included in the computation of net periodic benefit cost. Refer to Note 9—Pension and other post-retirement benefit plans for additional details. Washington Gas Light Company Changes in Accumulated Other Comprehensive Loss by Component September 30, (In thousands) 2018 2017 Beginning Balance $ (4,522 ) $ (7,830 ) Change in prior service cost (a) (675 ) (767 ) Amortization of actuarial gain (loss) (a) 6,324 6,232 Current-period other comprehensive income 5,649 5,465 Income tax expense benefit related to other comprehensive income 2,957 2,157 Ending Balance $ (1,830 ) $ (4,522 ) (a) These accumulated other comprehensive income (loss) components are included in the computation of net periodic benefit cost. Refer to Note 9—Pension and other post-retirement benefit plans for additional details. |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Supplemental Cash Flow Information Table | The following tables detail the changes in operating assets and liabilities from operating activities, cash payments that have been included in the determination of earnings and non-cash investing and financing activities: WGL Holdings Inc. For the year ended September 30, 2018 2017 2016 (In thousands) CHANGES IN OPERATING ASSETS AND LIABILITIES Accounts receivable and unbilled revenues—net $ (41,294 ) $ (108,236 ) $ (105,720 ) Gas costs and other regulatory assets/liabilities—net 27,994 3,430 (31,075 ) Storage gas 55,714 (36,852 ) 4,311 Prepaid taxes (1,197 ) 1,848 (76,779 ) Accounts payable and other accrued liabilities 35,000 51,307 31,792 Customer deposits and advance payments 18,264 (20,543 ) (2,513 ) Accrued taxes 13,494 1,985 1,805 Other current assets 1,678 (30,123 ) (24,502 ) Other current liabilities (3,448 ) 10,673 (5,532 ) Deferred gas costs—net (8,306 ) 2,467 (5,104 ) Deferred assets—other (8,821 ) (18,538 ) (22,312 ) Deferred liabilities—other (7,608 ) (29,407 ) 2,076 Pension and other post-retirement benefits (14,458 ) (9,950 ) (10,244 ) Other—net 1,288 3,002 3,821 Changes in operating assets and liabilities $ 68,300 $ (178,937 ) $ (239,976 ) SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION Income taxes paid (refunded)—net $ (1,143 ) $ (10,002 ) $ (10,723 ) Interest paid $ 88,115 $ 66,023 $ 51,838 SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING ACTIVITIES: Extinguishment of project debt financing $ (28,312 ) $ (27,927 ) $ — Capital expenditure accruals included in accounts payable and other accrued liabilities $ 91,927 $ 54,212 $ 84,132 Dividends paid in common stock $ — $ 1,362 $ 4,011 Stock based compensation $ 12,389 $ 6,564 $ 6,742 Transfer of investments to fixed assets (excluding ASD) $ 10,054 $ 30,114 $ — Transfer of notes receivables to investments $ — $ 10,031 $ — EFFECTS OF ASD CONSOLIDATION: Elimination of equity method investment $ — $ (66,719 ) $ — Consolidation of property, plant and equipment $ — $ 48,248 $ — Elimination of unamortized investment tax credits $ — $ 19,322 $ — Accounts receivable and other $ — $ 956 $ — Gain on consolidation $ — $ (1,807 ) $ — |
Reconciliation of cash, cash equivalents and restricted cash | The following tables provides a reconciliation of cash, cash equivalents, and restricted cash reported within WGL’s consolidated balance sheets and Washington Gas’ balance sheets that sums to the total of such amounts shown on the statements of cash flows. WGL HOLDINGS INC. (in thousands) Cash and cash equivalents $ 57,969 Restricted cash included in Current Assets-Other $ 20,207 Restricted cash included in Deferred Charges and Other Assets-Other $ 44,775 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 122,951 |
Washington Gas Light Company | |
Supplemental Cash Flow Information Table | Washington Gas For the year ended September 30, 2018 2017 2016 (In thousands) CHANGES IN OPERATING ASSETS AND LIABILITIES Accounts receivable, unbilled revenues and receivables from associated companies—net $ 16,578 $ (125,758 ) $ (78,304 ) Gas costs and other regulatory assets/liabilities—net 27,994 3,430 (31,075 ) Storage gas (8,626 ) (10,280 ) 12,016 Prepaid taxes 5,618 (6,524 ) 13,539 Accounts payable and other accrued liabilities, including payables to associated companies (54,918 ) 46,995 31,408 Customer deposits and advance payments 19,464 (16,742 ) (7,514 ) Accrued taxes 14,619 (4,831 ) 5,980 Other current assets (14,605 ) (4,123 ) 3,912 Other current liabilities 154 280 (1,318 ) Deferred gas costs—net (8,306 ) 2,467 (5,104 ) Deferred assets—other (5,895 ) (15,088 ) (22,057 ) Deferred liabilities—other (21,499 ) (4,667 ) (56,865 ) Pension and other post-retirement benefits (14,521 ) (9,806 ) (10,251 ) Other—net 893 3,409 2,107 Changes in operating assets and liabilities $ (43,050 ) $ (141,238 ) $ (143,526 ) SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION Income taxes paid (refunded)—net $ (2,983 ) $ — $ (19,004 ) Interest paid $ 57,036 $ 50,539 $ 40,972 SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING ACTIVITIES: Extinguishment of project debt financing $ (28,312 ) $ (27,927 ) $ — Capital expenditure accruals included in accounts payable and other accrued liabilities $ 53,367 $ 37,049 $ 43,687 |
Reconciliation of cash, cash equivalents and restricted cash | WASHINGTON GAS (in thousands) Cash and cash equivalents $ 1 Restricted cash included in Current assets-Other $ 20,207 Restricted cash included in Deferred Charges and Other Assets-Other $ 44,775 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 64,983 |
Merger with AltaGas Ltd. (Table
Merger with AltaGas Ltd. (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Business Acquisition [Line Items] | |
Merger related costs | WGL Holdings, Inc. MERGER RELATED COSTS (in millions) Costs Description Amount Merger commitments (1) $ 139.6 Property plant & equipment impairment (2) 38.0 Finance and legal advisory costs 29.7 Key employee retention payments 11.6 Acceleration of stock-based compensation (3) 8.4 Severance costs (4) 6.7 Other 2.7 Total $ 236.7 ` (1) See the Merger Commitments table below for details of merger related commitments. (2) Net property, plant and equipment impairment recorded in connection with an agreement not to seek recovery of certain costs incurred under the Formal Case 1027 mechanical coupling program. (3) See Note 10-Stock-Based Compensation for further discussion of the acceleration of incentive compensation. (4) Severance costs are related to the retirement of senior executives following the merger. |
Merger commitments | The following table lists total commitments, the amounts paid, and future expected payments as of September 30, 2018. WGL Holdings, Inc. MERGER COMMITMENTS (in millions) Expected Future Payments Commitment Description Total Commitment Amount Amount paid in FY 2018 2019 2020 2021 2022 2023 2024-2027 Customer bill credits $ 56.8 $ 56.8 $ — $ — $ — $ — $ — $ — Gas expansion fund contributions 34.2 — 34.2 — Energy customer or education programs 22.8 22.8 — — — — — — Charitable contributions 13.5 0.4 1.5 1.5 1.5 1.5 1.5 5.6 Work place development initiatives 7.4 — 3.7 3.7 — — — — Low-income weatherization and energy efficiency initiatives 4.2 — 2.1 2.1 — — — — Public safety programs 0.7 — 0.7 — — — — — Total merger commitments $ 139.6 $ 80.0 $ 42.2 $ 7.3 $ 1.5 $ 1.5 $ 1.5 $ 5.6 |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Data | All adjustments necessary for a fair presentation have been included in the quarterly information provided below. Due to the seasonal nature of our business, we report substantial variations in operations on a quarterly basis. Quarter Ended (In thousands) December 31 March 31 (a) June 30 September 30 (b) Fiscal Year 2018 (a)(b) WGL Holdings, Inc. Operating revenues $ 652,440 $ 886,451 $ 423,465 $ 379,409 Operating income $ 116,567 $ 194,173 $ (3,068 ) $ (257,011 ) Net income $ 132,592 $ 131,508 $ (55,327 ) $ (187,627 ) Net income applicable to common stock $ 138,040 $ 135,550 $ (49,006 ) $ (175,241 ) Washington Gas Light Company Operating revenues $ 377,470 $ 523,040 $ 199,512 $ 139,041 Operating income (loss) $ 99,545 $ 151,799 $ (3,828 ) $ (222,641 ) Net income (loss) $ 57,926 $ 108,084 $ (11,499 ) $ (181,153 ) Net income (loss) applicable to common stock $ 57,596 $ 107,754 $ (11,829 ) $ (181,483 ) Fiscal Year 2017 (c) WGL Holdings, Inc. Operating revenues $ 609,487 $ 841,750 $ 474,364 $ 429,123 Operating income (loss) $ 104,713 $ 197,597 $ 22,855 $ 15,848 Net income (loss) $ 55,767 $ 117,955 $ 4,036 $ 105 Net income (loss) applicable to common stock $ 57,972 $ 123,064 $ 8,265 $ 3,319 Washington Gas Light Company Operating revenues $ 333,986 $ 475,021 $ 203,186 $ 154,775 Operating income (loss) $ 103,008 $ 165,858 $ 11,464 $ (12,018 ) Net income (loss) $ 55,461 $ 93,610 $ (1,671 ) $ (15,608 ) Net income (loss) applicable to common stock $ 55,131 $ 93,280 $ (2,001 ) $ (15,938 ) (a) During the second quarter of fiscal year 2018, WGL recorded an other than temporary impairment charge of $ 34.0 million related to its investment in Constitution Pipeline. (b) During the fourth quarter of fiscal year 2018, WGL recorded $ 234.0 million expenses of merger related cost due to the Merger with AltaGas. (c) During the fiscal year ended September 30, 2017, there were no substantial variations in operations. |
Accounting Policies (Narrative)
Accounting Policies (Narrative) (Details) | Jul. 06, 2018 | Jan. 25, 2017 | Sep. 30, 2018USD ($)subsidiaryCustomers | Sep. 30, 2018USD ($)subsidiaryCustomers | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Oct. 01, 2017USD ($) |
Accounting Policies [Table] [Line Items] | |||||||
Business Acquisition, Date of Acquisition Agreement | Jan. 25, 2017 | ||||||
Business Acquisition, Effective Date of Acquisition | Jul. 6, 2018 | ||||||
Number of subsidiaries | subsidiary | 4 | 4 | |||||
Number of customers (more than one million) | Customers | 1,000,000 | 1,000,000 | |||||
Variable Interest Entity, Number of Investments | 6 | 6 | |||||
Pretax AFUDC Rate | 2.42% | 2.73% | 5.51% | ||||
Capitalized interest | $ 11,100,000 | $ 2,900,000 | $ 2,100,000 | ||||
Composite depreciation and amortization rate | 2.78% | 2.80% | 2.70% | ||||
Regulated revenue billing cycle | 19 days | ||||||
Duration of cost of gas recovered or refunded | 12 months | ||||||
Gross revenue taxes | $ 82,500,000 | $ 75,100,000 | $ 73,000,000 | ||||
Insurance Proceeds-Property Plant and Equipment | 3,238,000 | 0 | 0 | ||||
Current Income Tax Expense (Benefit) | (1,035,000) | 3,697,000 | (59,673,000) | ||||
Other income (expense) —net | (15,043,000) | 1,819,000 | 4,646,000 | ||||
ASU 2018-02 | |||||||
Accounting Policies [Table] [Line Items] | |||||||
Retained earnings | $ (1,800,000) | (1,800,000) | |||||
ASU 2016-18 | |||||||
Accounting Policies [Table] [Line Items] | |||||||
Rabbi Trust | 65,000,000 | 65,000,000 | |||||
ASU 2016-15 | |||||||
Accounting Policies [Table] [Line Items] | |||||||
Insurance Proceeds-Property Plant and Equipment | 3,200,000 | ||||||
ASU 2016-09 | |||||||
Accounting Policies [Table] [Line Items] | |||||||
Retained earnings | $ 4,300,000 | 4,300,000 | $ 4,300,000 | ||||
Current Income Tax Expense (Benefit) | 3,400,000 | 3,600,000 | |||||
ASU 2017-07 | |||||||
Accounting Policies [Table] [Line Items] | |||||||
Other income (expense) —net | 16,400 | 6,500 | |||||
Constitution | |||||||
Accounting Policies [Table] [Line Items] | |||||||
Impairment | $ 34,000,000 | ||||||
VIE, Primary Beneficiary | |||||||
Accounting Policies [Table] [Line Items] | |||||||
Variable Interest Entity, Number of Investments | 5 | 5 | |||||
Washington Gas Light Company | |||||||
Accounting Policies [Table] [Line Items] | |||||||
Impairment of Oil and Gas Properties | $ 38,000,000 | ||||||
Insurance Proceeds-Property Plant and Equipment | $ 3,238,000 | 0 | 0 | ||||
Current Income Tax Expense (Benefit) | 1,274,000 | 3,005,000 | (51,021,000) | ||||
Other income (expense) —net | (18,876,000) | (4,473,000) | $ (2,143,000) | ||||
Washington Gas Light Company | ASU 2018-02 | |||||||
Accounting Policies [Table] [Line Items] | |||||||
Retained earnings | (1,500,000) | (1,500,000) | |||||
Washington Gas Light Company | ASU 2016-15 | |||||||
Accounting Policies [Table] [Line Items] | |||||||
Insurance Proceeds-Property Plant and Equipment | 3,200,000 | ||||||
Washington Gas Light Company | ASU 2016-09 | |||||||
Accounting Policies [Table] [Line Items] | |||||||
Retained earnings | $ 4,200,000 | 4,200,000 | $ 4,200,000 | ||||
Current Income Tax Expense (Benefit) | 3,200,000 | 3,500,000 | |||||
Washington Gas Light Company | ASU 2017-07 | |||||||
Accounting Policies [Table] [Line Items] | |||||||
Other income (expense) —net | $ 11,600 | 3,600 | |||||
WGL Energy Services | Minimum | |||||||
Accounting Policies [Table] [Line Items] | |||||||
Indexed or fixed rate customer contracts terms | 24 months | ||||||
WGL Energy Services | Maximum | |||||||
Accounting Policies [Table] [Line Items] | |||||||
Indexed or fixed rate customer contracts terms | 5 years | ||||||
WGL | |||||||
Accounting Policies [Table] [Line Items] | |||||||
Lease Impairment | $ 4,100,000 | ||||||
Natural Gas Customers | WGL Energy Services | |||||||
Accounting Policies [Table] [Line Items] | |||||||
Number of customers | Customers | 108,900 | 108,900 | |||||
Electricity Customers | WGL Energy Services | |||||||
Accounting Policies [Table] [Line Items] | |||||||
Number of customers | Customers | 101,700 | 101,700 | |||||
Firm Customer | Washington Gas Light Company | |||||||
Accounting Policies [Table] [Line Items] | |||||||
Percentage of total gas deliveries | 77.00% | ||||||
Interruptible Customers | Washington Gas Light Company | |||||||
Accounting Policies [Table] [Line Items] | |||||||
Percentage of total gas deliveries | 13.00% | ||||||
Electric Generation Customers | Washington Gas Light Company | |||||||
Accounting Policies [Table] [Line Items] | |||||||
Percentage of total gas deliveries | 10.00% | ||||||
Regulated Operation [Member] | |||||||
Accounting Policies [Table] [Line Items] | |||||||
Total regulated utility segment, percentage | 87.30% | 87.30% | 87.20% |
Accounting Policies Property, P
Accounting Policies Property, Plant and Equipment at Original Cost (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Accounting Policies [Table] [Line Items] | ||
Total | $ 6,485,738 | $ 6,143,841 |
Washington Gas Light Company | ||
Accounting Policies [Table] [Line Items] | ||
Total | 5,613,137 | 5,310,337 |
WGL | ||
Accounting Policies [Table] [Line Items] | ||
Total | $ 6,485,700 | $ 6,144,000 |
Total regulated and unregulated segments, percentage | 100.00% | 100.00% |
Regulated Utility | ||
Accounting Policies [Table] [Line Items] | ||
Distribution, transmission and storage | $ 4,808,700 | $ 4,544,700 |
General, miscellaneous and intangibles | 539,400 | 548,500 |
Construction work in progress (CWIP) | 317,300 | 264,800 |
Total regulated and unregulated segments | $ 5,665,400 | $ 5,358,000 |
Distribution, transmission and storage, percentage | 74.10% | 74.00% |
General, miscellaneous and intangibles percentage | 8.30% | 8.90% |
Construction work in progress (CWIP), percentage | 4.90% | 4.30% |
Total regulated utility segment, percentage | 87.30% | 87.20% |
Unregulated Operation [Member] | ||
Accounting Policies [Table] [Line Items] | ||
Total regulated and unregulated segments | $ 820,300 | $ 786,000 |
Total unregulated segments, percentage | 12.70% | 12.80% |
Accounting Policies Changes in
Accounting Policies Changes in Asset Retirement Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
WGL | ||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Asset retirement obligations at beginning of year | $ 303.9 | $ 210.3 |
Liabilities incurred in the period | 2.5 | 3 |
Revaluation of asset retirement obligation | 89.5 | |
Liabilities settled in the period | (7.3) | (7.2) |
Accretion expense | 12.6 | 8.3 |
Asset retirement obligations at the end of the year | 311.7 | 303.9 |
Washington Gas Light Company | ||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Asset retirement obligations at beginning of year | 298.9 | 206.6 |
Liabilities incurred in the period | 1.4 | 2 |
Revaluation of asset retirement obligation | 89.5 | |
Liabilities settled in the period | (7.3) | (7.2) |
Accretion expense | 12.5 | 8 |
Asset retirement obligations at the end of the year | 305.5 | 298.9 |
Asset retirement obligation, current | $ 7.3 | $ 7.1 |
Regulated Operations (Details)
Regulated Operations (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 | |
Public Utilities, General Disclosures [Line Items] | |||
Regulatory Assets, Current | $ 5,054 | $ 21,705 | |
Regulatory Assets, Noncurrent | 104,578 | 104,596 | |
Gas costs due from/to customers | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory Assets, Current | [1] | 4,400 | 200 |
Regulatory Liabilities, Current | [1] | 9,000 | 10,600 |
Interruptible Sharing | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory Assets, Current | [1] | 2,400 | |
Regulatory Liabilities, Current | [1] | 1,500 | 700 |
Revenue normalization mechanisms for Maryland and Virginia | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory Assets, Current | [1] | 11,700 | |
Regulatory Liabilities, Current | [1] | 3,600 | 1,400 |
Accelerated replacement recovery mechanisms | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory Assets, Current | 600 | 7,400 | |
Regulatory Liabilities, Current | 1,900 | 1,100 | |
Rates subject to refund | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory Liabilities, Current | [2] | 9,000 | |
Tax Cuts and Jobs Act rate refunds | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory Liabilities, Current | [3] | 18,100 | |
Total current | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory Assets, Current | 5,000 | 21,700 | |
Regulatory Liabilities, Current | 34,100 | 22,800 | |
Accrued Asset Removal Costs | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory Liability, Noncurrent | 270,400 | 292,200 | |
Deferred Gas Costs | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory Assets, Noncurrent | [1],[4] | 83,200 | 90,100 |
Deferred pension costs/income-trackers | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory Assets, Noncurrent | [5] | 9,100 | 19,700 |
Pensions | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory Assets, Noncurrent | [1],[6] | 48,200 | 119,600 |
Other Post Retirement Benefits | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory Assets, Noncurrent | [1],[6] | 200 | |
Regulatory Liability, Noncurrent | [1],[6] | 160,300 | 135,000 |
Total pension and other post-retirement benefits | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory Assets, Noncurrent | 57,300 | 139,500 | |
Regulatory Liability, Noncurrent | 160,300 | 135,000 | |
Income tax-related amounts due from/to customers | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory Assets, Noncurrent | [7] | 43,100 | 37,900 |
Regulatory Liability, Noncurrent | [7] | 440,600 | 3,200 |
Losses/gains on issuance and extinguishments of debt and interest-rate derivative instruments | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory Assets, Noncurrent | [1],[8] | 15,300 | 16,400 |
Regulatory Liability, Noncurrent | [1],[8] | 1,300 | 1,400 |
Rights-of-way fees | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory Liability, Noncurrent | [1] | 1,900 | 700 |
Business process outsourcing and related costs | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory Assets, Noncurrent | [1] | 6,200 | 8,200 |
Non-retirement post-employment benefits | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory Assets, Noncurrent | [1],[9] | 16,500 | 17,800 |
Deferred distribution integrity management | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory Assets, Noncurrent | [1],[10] | 5,800 | 7,700 |
Recoverable portion of abandoned LNG facility | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory Assets, Noncurrent | 2,700 | 3,100 | |
Energy efficiency program-Maryland | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory Assets, Noncurrent | 4,500 | 5,300 | |
Other regulatory expenses | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory Assets, Noncurrent | 5,500 | 5,700 | |
Regulatory Liability, Noncurrent | 1,400 | 4,100 | |
Total other | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory Assets, Noncurrent | 104,600 | 104,600 | |
Regulatory Liability, Noncurrent | 445,200 | 9,400 | |
Total deferred | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory Assets, Noncurrent | 245,100 | 334,200 | |
Regulatory Liability, Noncurrent | 875,900 | 436,600 | |
Total | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory Assets | 250,100 | 355,900 | |
Regulatory Liabilities | $ 910,000 | $ 459,400 | |
[1] | Washington Gas does not earn its overall rate of return on these assets. Washington Gas is allowed to recover and required to pay, using short-term interest rates, the carrying costs related to billed gas costs due from and to its customers in the District of Columbia and Virginia jurisdictions. | ||
[2] | Represents provision established for refunds to customers when the substitution of final rates resulted in an amount greater than the amount collected during the interim period related to the 2016 Virginia Rate Case. | ||
[3] | Represents amounts accrued for future refunds due to the Tax Cuts and Jobs Act of 2017. For a further discussion, see Rates and Regulatory Matters section of Management's Discussion Analysis and Note 8-Income Taxes in the Notes to Consolidated Financial Statements. | ||
[4] | Includes fair value of derivatives, which are not included in customer bills until settled. | ||
[5] | Relates to the District of Columbia jurisdiction. | ||
[6] | Refer to Note 9-Pension and Other Post-Retirement Benefit Plans for a further discussion of these amounts. | ||
[7] | This balance represents amounts due from customers for deferred tax liabilities related to tax benefits on deduction flowed directly to customers prior to the adoption of income tax normalization for ratemaking purposes and to tax rate changes including the latest reduction as a result of the Tax Act. | ||
[8] | The losses or gains on the issuance and extinguishment of debt and interest-rate derivative instruments include unamortized balances from transactions executed in prior fiscal years. These transactions create gains and losses that are amortized over the remaining life of the debt as prescribed by regulatory accounting requirements. | ||
[9] | Represents the timing difference between the recognition of workers compensation and short-term disability costs in accordance with generally accepted accounting principles and the way these costs are recovered through rates. | ||
[10] | This balance represents amounts for deferred expenditures associated with Washington Gas’ Distribution Integrity Management Program (DIMP) in Virginia. |
Accounts Payable and Other Ac_3
Accounts Payable and Other Accrued Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Sep. 30, 2017 |
Accounts Payable and Accrued Liabilities [Line Items] | ||
Accounts payable—trade | $ 420 | $ 361.6 |
Employee benefits and payroll accruals | 34.2 | 35 |
Other accrued liabilities | 64.6 | 27.2 |
Total | 518.8 | 423.8 |
Washington Gas Light Company | ||
Accounts Payable and Accrued Liabilities [Line Items] | ||
Accounts payable—trade | 187 | 174.9 |
Employee benefits and payroll accruals | 32.9 | 32.4 |
Other accrued liabilities | 51.4 | 12.5 |
Total | $ 271.3 | $ 219.8 |
Short-Term Debt (Details)
Short-Term Debt (Details) $ in Thousands | Sep. 30, 2018USD ($)Contracts | Sep. 30, 2017USD ($) | |
Short Term Debt [Line Items] | |||
Less: Commercial Paper | $ (669,697) | $ (559,844) | |
Committed credit | |||
Short Term Debt [Line Items] | |||
Unsecured revolving credit facility | [1] | 1,000,000 | 1,000,000 |
Less: Commercial Paper | (587,500) | (505,000) | |
Net committed credit available | $ 412,500 | $ 495,000 | |
Weighted average interest rate | 2.58% | 1.45% | |
Outstanding bank loans | $ 0 | $ 0 | |
Maximum | |||
Short Term Debt [Line Items] | |||
Ratio of Indebtedness to Net Capital | 1 | ||
Ratio Of Indebtedness To Net Capital Percentage | 65.00% | ||
Minimum | |||
Short Term Debt [Line Items] | |||
Ratio of Indebtedness to Net Capital | 0.65 | ||
Washington Gas Light Company | |||
Short Term Debt [Line Items] | |||
Less: Commercial Paper | $ (163,478) | (166,772) | |
Revolving credit facility additional borrowings | 100,000 | ||
Revolving credit facility maximum borrowing capacity | $ 450,000 | ||
Ratio Of Indebtedness To Net Capital Percentage | 47.10% | ||
Washington Gas Light Company | Project financing agreements not yet novated | |||
Short Term Debt [Line Items] | |||
Number of contracts outstanding | Contracts | 2 | ||
Washington Gas Light Company | Energy management services projects not complete | |||
Short Term Debt [Line Items] | |||
Notes payable and project financing | [2] | $ 68,500 | 43,800 |
Reserve for bad debt | 0 | 0 | |
Washington Gas Light Company | Committed credit | |||
Short Term Debt [Line Items] | |||
Unsecured revolving credit facility | [1] | 350,000 | 350,000 |
Less: Commercial Paper | (95,000) | (123,000) | |
Net committed credit available | $ 255,000 | $ 227,000 | |
Weighted average interest rate | 2.42% | 1.22% | |
Outstanding bank loans | $ 0 | $ 0 | |
WGL | |||
Short Term Debt [Line Items] | |||
Ratio Of Indebtedness To Net Capital Percentage | 59.00% | ||
WGL | Energy management services projects not complete | |||
Short Term Debt [Line Items] | |||
Unbilled revenues | $ 77,000 | 85,600 | |
Notes payable and project financing | [2] | 82,200 | 54,800 |
Reserve for bad debt | 0 | 0 | |
WGL | Committed credit | |||
Short Term Debt [Line Items] | |||
Unsecured revolving credit facility | [1],[3] | 650,000 | 650,000 |
Less: Commercial Paper | [3] | (492,500) | (382,000) |
Net committed credit available | [3] | $ 157,500 | $ 268,000 |
Weighted average interest rate | [3] | 2.61% | 1.52% |
WGL Energy Systems | Energy management services projects not complete | |||
Short Term Debt [Line Items] | |||
Number of contracts outstanding | Contracts | 3 | ||
Notes payable and project financing | $ 13,700 | ||
[1] | Washington Gas has the right to request extensions with the banks’ approval. Washington Gas’ revolving credit facility permits it to borrow an additional $100 million, with the banks’ approval, for a total of $450 million. | ||
[2] | Balance is located in notes payable in the accompanying balance sheets. | ||
[3] | WGL includes WGL Holdings and all subsidiaries other than Washington Gas. |
Long Term Debt (Details)
Long Term Debt (Details) - USD ($) | 12 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | ||||
Long Term Debt | |||||
Unamortized discount | $ (4,341,000) | $ (4,541,000) | |||
Unamortized Debt Issuance Expense | (11,784,000) | (10,598,000) | |||
Long-Term Debt Maturities | |||||
Less-current maturities | 100,000,000 | 250,000,000 | |||
Long-term debt | 1,879,875,000 | 1,430,861,000 | |||
Total | Long-term debt outstanding | |||||
Long Term Debt | |||||
Principal | [1] | 1,996,000,000 | 1,696,000,000 | ||
Unamortized discount | (4,300,000) | (4,500,000) | |||
Unamortized Debt Issuance Expense | (11,800,000) | (10,600,000) | |||
Total Long-Term Debt | $ 1,979,900,000 | $ 1,680,900,000 | |||
Weighted Average Interest Rate | 4.11% | 4.21% | |||
Maturities | |||||
Long-Term Debt Maturities | |||||
2,019 | [2] | $ 100,000,000 | |||
2,020 | [2] | 700,000,000 | |||
2,023 | [2] | 20,000,000 | |||
Thereafter | [2] | 1,176,000,000 | |||
Total | [2] | 1,996,000,000 | |||
Less-current maturities | [2] | 100,000,000 | |||
Long-term debt | [2] | 1,896,000,000 | |||
Washington Gas Light Company | |||||
Long Term Debt | |||||
Additional borrowing capacity | 725,000,000 | ||||
Unamortized discount | (2,900,000) | $ (3,042,000) | |||
Unamortized Debt Issuance Expense | (8,133,000) | (8,497,000) | |||
Long-Term Debt Maturities | |||||
Less-current maturities | [2] | 50,000,000 | |||
Long-term debt | 1,084,933,000 | 1,134,461,000 | |||
Unamortized Discount and Debt Issuance Costs, Net | 11,000,000 | ||||
Washington Gas Light Company | Mortgage | |||||
Long Term Debt | |||||
Mortgage Debt Outstanding | 0 | 0 | |||
Washington Gas Light Company | Long-term debt outstanding | |||||
Long Term Debt | |||||
Principal | [1] | 1,146,000,000 | 1,146,000,000 | ||
Unamortized discount | (2,900,000) | [3] | (3,000,000) | ||
Unamortized Debt Issuance Expense | (8,100,000) | (8,500,000) | |||
Total Long-Term Debt | $ 1,135,000,000 | $ 1,134,500,000 | |||
Weighted Average Interest Rate | 4.89% | 4.89% | |||
Washington Gas Light Company | Total | |||||
Long Term Debt | |||||
Principal | [4] | $ 200,000,000 | |||
Washington Gas Light Company | Maturities 2046 Notes | Issuances | |||||
Long Term Debt | |||||
Principal | [4] | $ 200,000,000 | |||
Interest Rate | [5] | 3.80% | |||
Nominal Maturity Date | Sep. 15, 2046 | ||||
Washington Gas Light Company | Maturities | |||||
Long-Term Debt Maturities | |||||
2,019 | [2] | $ 50,000,000 | |||
2,020 | [2] | 50,000,000 | |||
2,023 | [2] | 20,000,000 | |||
Thereafter | [2] | 1,026,000,000 | |||
Total | [2] | 1,146,000,000 | |||
Long-term debt | [2] | 1,096,000,000 | |||
WGL | |||||
Long-Term Debt Maturities | |||||
Less-current maturities | [2],[6] | 50,000,000 | |||
Unamortized Discount and Debt Issuance Costs, Net | 5,100,000 | ||||
WGL | Long-term debt outstanding | |||||
Long Term Debt | |||||
Principal | [1],[3] | 850,000,000 | $ 550,000,000 | ||
Unamortized discount | [3] | (1,400,000) | (1,500,000) | ||
Unamortized Debt Issuance Expense | [3] | (3,700,000) | (2,100,000) | ||
Total Long-Term Debt | [3] | $ 844,900,000 | $ 546,400,000 | ||
Weighted Average Interest Rate | [3] | 3.06% | 2.81% | ||
WGL | Total | |||||
Long Term Debt | |||||
Principal | [4],[7] | $ 250,000,000 | $ 50,000,000 | ||
WGL | Maturities 2019 Notes | Issuances | |||||
Long Term Debt | |||||
Principal | [4],[7] | $ 300,000,000 | $ 50,000,000 | ||
Interest Rate | [5],[7] | 1.88% | [8] | 1.57% | [9] |
Effective Cost | [5],[7] | 2.01% | |||
Nominal Maturity Date | [7] | Nov. 29, 2019 | Jan. 26, 2019 | ||
WGL | Maturities 2019 Notes | Total Consolidated Issuances | |||||
Long Term Debt | |||||
Principal | [4],[7] | $ 550,000,000 | $ 250,000,000 | ||
WGL | Maturities 2020 Notes | Issuances | |||||
Long Term Debt | |||||
Principal | [4],[7] | $ 250,000,000 | |||
Interest Rate | [5],[7],[10] | 2.66% | |||
Effective Cost | [5],[7] | 2.79% | |||
Nominal Maturity Date | [7] | Mar. 12, 2020 | |||
WGL | Maturities | |||||
Long-Term Debt Maturities | |||||
2,019 | [2],[6] | $ 50,000,000 | |||
2,020 | [2],[6] | 650,000,000 | |||
Thereafter | [2],[6] | 150,000,000 | |||
Total | [2],[6] | 850,000,000 | |||
Long-term debt | [2],[6] | 800,000,000 | |||
WGL | Maturities 2018 Notes | Retirements | |||||
Long Term Debt | |||||
Principal | [4],[7] | $ 250,000,000 | |||
Interest Rate | [5],[7] | 1.24% | |||
Effective Cost | [5],[7] | 1.24% | |||
Nominal Maturity Date | Feb. 18, 2018 | ||||
[1] | Includes Senior Notes and term loans for WGL and both MTNs and private placement notes for Washington Gas. Represents face value including current maturities. | ||||
[2] | Excludes unamortized discounts and debt issuance costs of $5.1 million and $11.0 million at September 30, 2018, for WGL and Washington Gas, respectively. | ||||
[3] | WGL includes WGL Holdings and all subsidiaries other than Washington Gas. | ||||
[4] | Represents face amount of notes. | ||||
[5] | Represents the interest rate and effective cost at the trade date of the debt. | ||||
[6] | WGL includes WGL Holdings and all subsidiaries other than Washington Gas. | ||||
[7] | WGL includes WGL Holdings and all subsidiaries other than Washington Gas. | ||||
[8] | Floating rate per annum and reset quarterly based on terms set forth in the prospectus supplement filed by WGL pursuant to Securities Act Rule 424 on November 27, 2017. | ||||
[9] | Floating rate per annum that will be determined from time to time based on parameters set forth in the credit agreement. | ||||
[10] | Floating rate per annum and reset quarterly based on terms set forth in the prospectus supplement filed by WGL pursuant to Securities Act Rule 424 on March 13, 2018. |
Common Stock (Details)
Common Stock (Details) | Jul. 06, 2018$ / sharesshares |
Wrangler I | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Post-merger common stock outstanding (in shares) | shares | 100 |
Merger consideration | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Business Acquisition, Share Price | $ / shares | $ 88.25 |
Preferred Stock (Details)
Preferred Stock (Details) - $ / shares | Sep. 30, 2018 | Sep. 30, 2017 |
Preferred Stock, Par or Stated Value Per Share (in dollars per share) | $ 0 | $ 0 |
Washington Gas Light Company | ||
Preferred Stock, Par or Stated Value Per Share (in dollars per share) | 0 | $ 0 |
Series One | Washington Gas Light Company | ||
Preferred Stock, Par or Stated Value Per Share (in dollars per share) | $ 4.80 | |
Preferred Stock, Shares Outstanding (in shares) | 150,000 | |
Preferred Stock, Liquidation Preference Per Share Involuntary (in dollars per share) | $ 100 | |
Preferred Stock Liquidation Preference Voluntary (in dollars per share) | 101 | |
Preferred Stock, Redemption Price Per Share (in dollars per share) | 101 | |
Series Two | Washington Gas Light Company | ||
Preferred Stock, Par or Stated Value Per Share (in dollars per share) | $ 4.25 | |
Preferred Stock, Shares Outstanding (in shares) | 70,600 | |
Preferred Stock, Liquidation Preference Per Share Involuntary (in dollars per share) | $ 100 | |
Preferred Stock Liquidation Preference Voluntary (in dollars per share) | 105 | |
Preferred Stock, Redemption Price Per Share (in dollars per share) | 105 | |
Series Three | Washington Gas Light Company | ||
Preferred Stock, Par or Stated Value Per Share (in dollars per share) | $ 5 | |
Preferred Stock, Shares Outstanding (in shares) | 60,000 | |
Preferred Stock, Liquidation Preference Per Share Involuntary (in dollars per share) | $ 100 | |
Preferred Stock Liquidation Preference Voluntary (in dollars per share) | 102 | |
Preferred Stock, Redemption Price Per Share (in dollars per share) | $ 102 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | Jan. 01, 2018 | Jul. 06, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | ||||
Income Taxes [Line Items] | ||||||||||
Federal corporate income tax rate | 21.00% | 21.00% | [1] | 35.00% | [1] | 35.00% | [1] | |||
Unrecognized tax benefits increase (decrease) | $ 4,400 | |||||||||
Unrecognized Tax Benefits | 43,567 | $ 48,009 | $ 42,283 | $ 38,627 | ||||||
Reduction in regulated revenue | (1,229,521) | (1,143,337) | (1,044,117) | |||||||
Estimated reduction in tax depreciation expense | 1,079 | 2,213 | 2,445 | |||||||
Regulatory liability increase (decrease) | (445,203) | (9,403) | ||||||||
Income tax expense | 53,452 | (111,159) | $ (98,074) | |||||||
Deferred tax liabilities decrease | 336,378 | 868,067 | ||||||||
Regulatory Assets, Noncurrent | 104,578 | $ 104,596 | ||||||||
Net regulatory assets increase (decrease) | 5,900 | |||||||||
Tax cuts and jobs act | ||||||||||
Income Taxes [Line Items] | ||||||||||
Reduction in regulated revenue | (27,500) | |||||||||
Uncertain tax position | ||||||||||
Income Taxes [Line Items] | ||||||||||
Deferred tax liabilities decrease | 14,800 | |||||||||
Excess Deferred Income Taxes | ||||||||||
Income Taxes [Line Items] | ||||||||||
Regulatory liability increase (decrease) | (431,000) | |||||||||
Consolidated deferred tax liability | ||||||||||
Income Taxes [Line Items] | ||||||||||
Deferred tax liabilities decrease | 458,700 | |||||||||
Flow-through | ||||||||||
Income Taxes [Line Items] | ||||||||||
Regulatory asset increase (decrease) | (22,400) | |||||||||
Re measurement of excess deferred taxes and net operating lass carryforward deferred tax asset | ||||||||||
Income Taxes [Line Items] | ||||||||||
Regulatory Assets, Noncurrent | 28,300 | |||||||||
Provisional amounts subject to adjustments | ||||||||||
Income Taxes [Line Items] | ||||||||||
Bonus depreciation | $ 86,000 | |||||||||
Provisional amounts subject to adjustments | Tax cuts and jobs act | ||||||||||
Income Taxes [Line Items] | ||||||||||
Reduction in regulated revenue | (41,200) | |||||||||
Regulated utility (WGL) | ||||||||||
Income Taxes [Line Items] | ||||||||||
Receivable from subsidiaries with taxable income | $ 2,900 | |||||||||
Federal corporate income tax rate | [2] | 21.00% | 35.00% | 35.00% | ||||||
Unrecognized tax benefits increase (decrease) | $ (4,400) | |||||||||
Estimated reduction in tax depreciation expense | 1,079 | $ 2,213 | $ 2,445 | |||||||
Regulatory liability increase (decrease) | (443,665) | (9,403) | ||||||||
Income tax expense | 25,863 | (79,840) | $ (71,666) | |||||||
Deferred tax liabilities decrease | 409,807 | 888,385 | ||||||||
Regulatory Assets, Noncurrent | 104,050 | $ 104,538 | ||||||||
Regulated utility (WGL) | Consolidated deferred tax liability | ||||||||||
Income Taxes [Line Items] | ||||||||||
Deferred tax liabilities decrease | 422,900 | |||||||||
Regulated utility (WGL) | Plant related | ||||||||||
Income Taxes [Line Items] | ||||||||||
Deferred tax liabilities decrease | 319,200 | |||||||||
Non Utility | ||||||||||
Income Taxes [Line Items] | ||||||||||
Income tax expense | (28,700) | |||||||||
Deferred tax liabilities decrease | $ 35,800 | |||||||||
[1] | As a result of the merger with AltaGas, the Company is subject to two separate short periods and accompanying returns. The first period through July 6, 2018 is subjected to a higher, blended federal statutory rate. Due to the net operating loss for federal tax purposes through September 30, 2018, all current year activity is ultimately taxed at 21%. As such, for presentational purposes, we applied a 21% rate to the entire fiscal year activity. | |||||||||
[2] | As a result of the merger with AltaGas, the Company is subject to two separate short periods and accompanying returns. The first period through July 6, 2018 is subjected to a higher, blended federal statutory rate. Due to the net operating loss for federal tax purposes through September 30, 2018, all current year activity is ultimately taxed at 21%. As such, for presentational purposes, we applied a 21% rate to the entire fiscal year activity. |
Income Taxes (Components of Inc
Income Taxes (Components of Income Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Current | ||||
Federal | $ (1,684) | $ 430 | $ (57,690) | |
State | 649 | 3,267 | (1,983) | |
Total current | (1,035) | 3,697 | (59,673) | |
Deferred | ||||
Total deferred | [1] | (45,019) | 114,966 | 163,879 |
Amortization of investment tax credits | 7,398 | 7,504 | 6,132 | |
Income tax expense | (53,452) | 111,159 | 98,074 | |
Footnote | ||||
Deferred Income Tax Expense (Benefit) | [1] | (45,019) | 114,966 | 163,879 |
Accelerated Depreciation [Member] | ||||
Deferred | ||||
Federal | (28,498) | 83,637 | 93,175 | |
State | 12,399 | 15,097 | 12,993 | |
Other Federal | ||||
Deferred | ||||
Federal | (32,490) | 13,042 | 49,638 | |
Other State | ||||
Deferred | ||||
State | 3,570 | 3,190 | 8,073 | |
Other components | ||||
Deferred | ||||
Amortization of investment tax credits | 7,398 | 7,504 | 6,132 | |
Re measurement of deferred income taxes | ||||
Deferred | ||||
Total deferred | 28,700 | |||
Footnote | ||||
Deferred Income Tax Expense (Benefit) | 28,700 | |||
Washington Gas Light Company | ||||
Current | ||||
Federal | 1,722 | (48,064) | ||
State | 1,274 | 1,283 | (2,957) | |
Total current | 1,274 | 3,005 | (51,021) | |
Deferred | ||||
Total deferred | [2] | (26,435) | 77,586 | 123,482 |
Amortization of investment tax credits | (703) | (751) | (795) | |
Income tax expense | (25,863) | 79,840 | 71,666 | |
Footnote | ||||
Deferred Income Tax Expense (Benefit) | [2] | (26,435) | 77,586 | 123,482 |
Washington Gas Light Company | Accelerated Depreciation [Member] | ||||
Deferred | ||||
Federal | (27,846) | 83,009 | 93,385 | |
State | 12,533 | 15,033 | 13,081 | |
Washington Gas Light Company | Other Federal | ||||
Deferred | ||||
Federal | (8,485) | (18,419) | 13,826 | |
State | (2,637) | (2,037) | 3,190 | |
Washington Gas Light Company | Other components | ||||
Deferred | ||||
Amortization of investment tax credits | 702 | $ 751 | $ 795 | |
Washington Gas Light Company | Re measurement of deferred income taxes | ||||
Deferred | ||||
Total deferred | 7,000 | |||
Footnote | ||||
Deferred Income Tax Expense (Benefit) | $ 7,000 | |||
[1] | As a result of the merger with AltaGas, the Company is subject to two separate short periods and accompanying returns. The first period through July 6, 2018 is subjected to a higher, blended federal statutory rate. Due to the net operating loss for federal tax purposes through September 30, 2018, all current year activity is ultimately taxed at 21%. As such, for presentational purposes, we applied a 21% rate to the entire fiscal year activity. | |||
[2] | Includes tax expense of $7.0 million related to remeasurement of deferred income taxes. |
Income Taxes (Tax Rate Reconcil
Income Taxes (Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands | Jan. 01, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | ||||
Income Taxes [Line Items] | ||||||||
Income taxes at statutory federal tax rate | [1] | $ (6,784) | $ 101,157 | $ 93,253 | ||||
Statutory federal income tax rate (%) | 21.00% | 21.00% | [1] | 35.00% | [1] | 35.00% | [1] | |
Accelerated depreciation less amount deferred | $ 1,079 | $ 2,213 | $ 2,445 | |||||
Accelerated depreciation less amount deferred (%) | (3.34%) | 0.77% | 0.92% | |||||
Allowance for funds used during construction | $ (1,891) | $ (1,625) | $ (1,537) | |||||
Allowance for funds used during construction (%) | 5.85% | (0.56%) | (0.58%) | |||||
Amortization of investment tax credits | $ (7,398) | $ (7,504) | $ (6,132) | |||||
Amortization of investment tax credits (%) | (22.90%) | (2.60%) | (2.30%) | |||||
Amortization of excess deferred taxes | $ (9,889) | $ (201) | ||||||
Amortization of excess deferred taxes (%) | (31.00%) | (0.00%) | ||||||
Cost of removal | $ (1,561) | $ (2,944) | $ (3,722) | |||||
Cost of removal (%) | 4.83% | (1.02%) | (1.40%) | |||||
State income taxes-net of federal benefit | $ 3,976 | $ 13,472 | $ 12,969 | |||||
State income taxes-net of federal benefit (%) | (12.31%) | 4.66% | 4.87% | |||||
Release of valuation allowance | $ (2,188) | |||||||
Release of valuation allowance on ASDH (%) | 7.00% | |||||||
Merger related costs | $ 2,044 | $ 2,292 | ||||||
Merger related costs (%) | (6.33%) | 0.79% | ||||||
Non-controlling interest | $ 6,199 | $ 5,627 | ||||||
Non-controlling Interest (%) | (19.19%) | 1.95% | ||||||
Re-measurement | $ (28,743) | |||||||
Re-measurement (%) | 89.00% | |||||||
ASU 2016-09 adoption | $ (3,521) | |||||||
ASU 2016-09 adoption (%) | 11.00% | |||||||
Book to provision adjustment | $ (6,279) | $ (3,062) | $ (1,012) | |||||
Book to provision adjustment (%) | 19.44% | (1.06%) | (0.38%) | |||||
Other items-net | $ 1,504 | $ 1,734 | $ 1,810 | |||||
Other items-net (%) | (4.66%) | 0.60% | 0.68% | |||||
Income tax expense | $ (53,452) | $ 111,159 | $ 98,074 | |||||
Total income tax expense (benefit) and effective tax rate (%) | 165.44% | 38.46% | 36.81% | |||||
Washington Gas Light Company | ||||||||
Income Taxes [Line Items] | ||||||||
Income taxes at statutory federal tax rate | [2] | $ (11,026) | $ 74,071 | $ 64,673 | ||||
Statutory federal income tax rate (%) | [2] | 21.00% | 35.00% | 35.00% | ||||
Accelerated depreciation less amount deferred | $ 1,079 | $ 2,213 | $ 2,445 | |||||
Accelerated depreciation less amount deferred (%) | (2.06%) | 1.05% | 1.32% | |||||
Allowance for funds used during construction | $ (70) | $ (291) | $ (509) | |||||
Allowance for funds used during construction (%) | 0.00% | 0.00% | 0.00% | |||||
Amortization of investment tax credits | $ 703 | $ 751 | $ 795 | |||||
Amortization of investment tax credits (%) | 1.34% | (0.35%) | (0.43%) | |||||
Amortization of excess deferred taxes | $ 9,798 | $ 196 | ||||||
Amortization of excess deferred taxes (%) | (19.00%) | (0.00%) | ||||||
Cost of removal | $ 1,561 | $ 2,944 | $ 3,722 | |||||
Cost of removal (%) | 3.00% | (1.00%) | (2.00%) | |||||
State income taxes-net of federal benefit | $ (2,659) | $ 9,482 | $ 8,310 | |||||
State income taxes-net of federal benefit (%) | 5.00% | 4.00% | 4.00% | |||||
Consolidated tax sharing allocation | $ 1,073 | |||||||
Consolidated tax sharing allocation (%) | 0.58% | |||||||
Re-measurement | $ 7,031 | |||||||
Re-measurement (%) | (13.00%) | |||||||
ASU 2016-09 adoption | $ (3,223) | |||||||
ASU 2016-09 adoption (%) | 6.00% | |||||||
Book to provision adjustment | $ (4,669) | $ (4,859) | $ (1,353) | |||||
Book to provision adjustment (%) | 8.89% | (2.30%) | (0.73%) | |||||
Other items-net | $ (264) | $ 3,115 | $ 1,544 | |||||
Other items-net (%) | 0.50% | 1.47% | 0.84% | |||||
Income tax expense | $ (25,863) | $ 79,840 | $ 71,666 | |||||
Total income tax expense (benefit) and effective tax rate (%) | 49.24% | 37.73% | 38.79% | |||||
[1] | As a result of the merger with AltaGas, the Company is subject to two separate short periods and accompanying returns. The first period through July 6, 2018 is subjected to a higher, blended federal statutory rate. Due to the net operating loss for federal tax purposes through September 30, 2018, all current year activity is ultimately taxed at 21%. As such, for presentational purposes, we applied a 21% rate to the entire fiscal year activity. | |||||||
[2] | As a result of the merger with AltaGas, the Company is subject to two separate short periods and accompanying returns. The first period through July 6, 2018 is subjected to a higher, blended federal statutory rate. Due to the net operating loss for federal tax purposes through September 30, 2018, all current year activity is ultimately taxed at 21%. As such, for presentational purposes, we applied a 21% rate to the entire fiscal year activity. |
Income Taxes (Components of Def
Income Taxes (Components of Deferred Tax Assets (Liabilities)) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Deferred Income Tax Assets: | ||||
Amortization of investment tax credits | $ 7,398 | $ 7,504 | $ 6,132 | |
Non-current | ||||
Deferred Income Tax Assets: | ||||
Pensions | 43,553 | 42,593 | ||
Uncollectible accounts | 3,714 | 10,617 | ||
Inventory overheads | 4,090 | 6,617 | ||
Employee compensation and benefits | 52,526 | 45,202 | ||
Income taxes recoverable through future rates | 0 | 0 | ||
Derivatives | 10,787 | 13,802 | ||
Deferred gas costs | 1,485 | |||
Solar grant/ investment tax credit | 58,514 | 61,773 | ||
Tax credit carry forward | 158,167 | 160,077 | ||
Net operating loss | 114,625 | 30,278 | ||
Other | [1] | 5,346 | 2,693 | |
Total assets | 572,467 | 375,137 | ||
Deferred Income Tax Liabilities: | ||||
Other post-retirement benefits | 106,700 | 90,031 | ||
Accelerated depreciation and other plant related items | 756,022 | 1,068,951 | ||
Losses/gains on reacquired debt | 581 | 1,047 | ||
Income taxes recoverable through future rates | 0 | 0 | ||
Deferred gas costs | 3,041 | |||
Partnership basis difference | 41,459 | 46,968 | ||
Valuation allowances | 0 | 2,188 | ||
Total liabilities | 907,803 | 1,242,687 | ||
Total Liabilities | (335,336) | (867,550) | ||
Deferred income tax assets | 1,000 | 500 | ||
deferred tax asset | ||||
Deferred Income Tax Assets: | ||||
Income taxes recoverable through future rates | (121,145) | |||
Deferred Income Tax Liabilities: | ||||
Income taxes recoverable through future rates | (121,145) | |||
deferred tax liability | ||||
Deferred Income Tax Assets: | ||||
Income taxes recoverable through future rates | (33,502) | |||
Deferred Income Tax Liabilities: | ||||
Income taxes recoverable through future rates | (33,502) | |||
Washington Gas Light Company | ||||
Deferred Income Tax Assets: | ||||
Amortization of investment tax credits | (703) | (751) | $ (795) | |
Washington Gas Light Company | Non-current | ||||
Deferred Income Tax Assets: | ||||
Pensions | 43,071 | 41,907 | ||
Uncollectible accounts | 1,131 | 7,815 | ||
Inventory overheads | 4,090 | 6,617 | ||
Employee compensation and benefits | 51,006 | 47,479 | ||
Income taxes recoverable through future rates | (121,357) | (33,324) | ||
Derivatives | 7,435 | 11,187 | ||
Deferred gas costs | 1,485 | |||
Net operating loss | 90,943 | |||
Total assets | 319,033 | 116,490 | ||
Deferred Income Tax Liabilities: | ||||
Other post-retirement benefits | 106,289 | 89,494 | ||
Accelerated depreciation and other plant related items | 615,499 | 876,235 | ||
Losses/gains on reacquired debt | 581 | 1,047 | ||
Income taxes recoverable through future rates | (121,357) | (33,324) | ||
Deferred gas costs | 3,041 | |||
Other | 3,430 | 4,775 | ||
Total liabilities | 728,840 | 1,004,875 | ||
Total Liabilities | $ (409,807) | $ (888,385) | ||
[1] | For the fiscal years ended September 30, 2018 and 2017, amount includes $1.0 million and $0.5 million, respectively, in deferred income tax assets reported in "Deferred charges and other assets" on the consolidated balance sheet |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Unrecognized Tax Benefits | |||
Total unrecognized tax benefits, beginning balance | $ 48,009 | $ 42,283 | $ 38,627 |
Increases in tax positions relating to current year | 10,947 | 10,766 | 10,645 |
Decreases in tax positions relating to prior year | (15,389) | (5,040) | (6,989) |
Total unrecognized tax benefits, ending balance | $ 43,567 | $ 48,009 | $ 42,283 |
Pension and Other Post-retire_3
Pension and Other Post-retirement Benefit Plans (Narrative) (Details) - USD ($) | Jan. 01, 2018 | Sep. 30, 2015 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Total matching contributions | $ 5,600,000 | $ 5,100,000 | $ 5,100,000 | ||||||
Total supplemental contributions | 3,400,000 | 2,900,000 | 2,600,000 | ||||||
Prior service credit related to plan amendment | $ 26,100,000 | $ 675,000 | [1] | 767,000 | [1] | 891,000 | |||
Percentage of prior years asset gains and losses recognized | 20.00% | ||||||||
Realized and unrealized gains and losses on equities prior year | 80.00% | ||||||||
Realized and unrealized gains and losses on equities second prior year | 60.00% | ||||||||
Realized and unrealized gains and losses on equities third prior year | 40.00% | ||||||||
Realized and unrealized gains and losses on equities fourth prior year | 20.00% | ||||||||
Current assets-other | $ 38,363,000 | 26,556,000 | |||||||
Deferred charges and other assets-other | $ 59,201,000 | 11,671,000 | |||||||
Defined Benefit Plan, Assumed Health Care Cost Trend Rates [Abstract] | |||||||||
Mortality assumptions | <div style="line-height:120%;padding-top:10px;text-indent:12px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We have modified the MP-2014 improvement scale to (a) adjust the ultimate long-term rate of mortality improvement from 1.00% to 0.75% per annum up to age 85 trending down to 0% between age 85 and age 115; and (b) shorten the convergence period from short term to ultimate rates of improvement from the 20-year period to a 15-year period. These mortality assumptions were used to determine the benefit obligations as of September 30, 2018 and 2017. </font></div></div>" id="sjs-D14"><div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:10px;text-indent:12px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We have modified the MP-2014 improvement scale to (a) adjust the ultimate long-term rate of mortality improvement from 1.00% to 0.75% per annum up to age 85 trending down to 0% between age 85 and age 115; and (b) shorten the convergence period from short term to ultimate rates of improvement from the 20-year period to a 15-year period. These mortality assumptions were used to determine the benefit obligations as of September 30, 2018 and 2017. </font></div></div> | ||||||||
HRA Stipend Increase | 0.00% | ||||||||
Defined Benefit Plan Target Allocation Percentage [Abstract] | |||||||||
Asset Class Allocations Allowed Range Within Plus Or Minus | 5.00% | ||||||||
Rabbi Trusts | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Deferred charges and other assets-other | $ 40,300,000 | ||||||||
Fiscal year 2018 | |||||||||
Defined Benefit Plan, Assumed Health Care Cost Trend Rates [Abstract] | |||||||||
Health Care Cost Trend Rates For Non Medicare Eligible Retirees | 6.30% | ||||||||
Scenario, Forecast | |||||||||
Defined Benefit Plan, Assumed Health Care Cost Trend Rates [Abstract] | |||||||||
HRA Stipend Increase | 3.00% | 0.00% | |||||||
Scenario, Forecast | Fiscal year 2019 | |||||||||
Defined Benefit Plan, Assumed Health Care Cost Trend Rates [Abstract] | |||||||||
Health Care Cost Trend Rates For Non Medicare Eligible Retirees | 6.00% | ||||||||
Future Healthcare Cost Trend Rates | 6.50% | ||||||||
Scenario, Forecast | Fiscal year 2020 | |||||||||
Defined Benefit Plan, Assumed Health Care Cost Trend Rates [Abstract] | |||||||||
Health Care Cost Trend Rates For Non Medicare Eligible Retirees | 2.20% | ||||||||
Future Healthcare Cost Trend Rates | 2.20% | ||||||||
Union Eligible Employee | |||||||||
Defined Benefit Plan Target Allocation Percentage [Abstract] | |||||||||
US Large Cap Equities | 40.00% | ||||||||
Fixed Income And Cash | 60.00% | ||||||||
Management Employee | |||||||||
Defined Benefit Plan Target Allocation Percentage [Abstract] | |||||||||
US Large Cap Equities | 50.00% | ||||||||
Fixed Income And Cash | 50.00% | ||||||||
Aggregate Cost Limit Per Individual | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Retiree Medical employer sponsored coverage limits under amendment | $ 11,850 | ||||||||
Aggregate Cost Limit Per Family | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Retiree Medical employer sponsored coverage limits under amendment | $ 30,950 | ||||||||
Pension Plan | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Prior service credit related to plan amendment | $ 300,000 | 300,000 | 300,000 | ||||||
The projected benefit obligation (PBO) | $ 923,600,000 | 983,100,000 | |||||||
Increase in PBO due to changes in mortality assumptions | 0 | ||||||||
Defined Benefit Plan Target Allocation Percentage [Abstract] | |||||||||
US Large Cap Equities | 32.00% | ||||||||
International Equities | 8.00% | ||||||||
Real Estate Investments | 5.00% | ||||||||
Fixed Income And Cash | 55.00% | ||||||||
Employer payment current fiscal year | $ 0 | ||||||||
Pension Plan | Scenario, Forecast | |||||||||
Defined Benefit Plan Target Allocation Percentage [Abstract] | |||||||||
Estimated future employer contributions in next fiscal year | $ 0 | ||||||||
Other post-retirement benefits | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Prior service credit related to plan amendment | (17,600,000) | (17,700,000) | $ (17,700,000) | ||||||
Defined Benefit Plan Target Allocation Percentage [Abstract] | |||||||||
Employer payment current fiscal year | 5,000,000 | ||||||||
Estimated future employer contributions in next fiscal year | 1,300,000 | ||||||||
DB Restoration | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
The projected benefit obligation (PBO) | 4,000,000 | 4,200,000 | |||||||
DB Restoration | Rabbi Trusts | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Current assets-other | 20,200,000 | ||||||||
DB SERP | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
The projected benefit obligation (PBO) | 62,200,000 | $ 60,200,000 | |||||||
Defined Benefit Plan Target Allocation Percentage [Abstract] | |||||||||
Employer payment current fiscal year | 1,800,000 | ||||||||
Estimated future employer contributions in next fiscal year | $ 20,200,000 | ||||||||
Defined benefit plan percentage of expenses recovered through rates | 50.00% | ||||||||
DB SERP | Rabbi Trusts | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Current assets-other | $ 60,500,000 | ||||||||
Maximum | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Percentage Of supplemental contribution | 6.00% | ||||||||
Minimum | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Percentage Of supplemental contribution | 4.00% | ||||||||
[1] | These accumulated other comprehensive income (loss) components are included in the computation of net periodic benefit cost. Refer to Note 9—Pension and other post-retirement benefit plans for additional details. |
Pension and Other Post-retire_4
Pension and Other Post-retirement Benefit Plans (Post-Retirement Benefits Table) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | ||||
Total Recognized | ||||||
Non-current asset | $ 286,010 | $ 231,577 | ||||
Non-current liability | (119,597) | (181,552) | ||||
Pension Plan | ||||||
Change in projected benefit obligation | ||||||
Benefit obligation at beginning of year | [1] | 1,047,500 | 1,069,300 | |||
Service cost | 14,900 | [1] | 16,500 | [1] | $ 14,200 | |
Interest cost | 39,600 | [1] | 38,400 | [1] | 41,300 | |
Change in plan benefits | [1] | 0 | ||||
Actuarial loss (gain) | [1] | (65,200) | (28,200) | |||
Projected benefit obligation at end of year | [1] | 989,800 | 1,047,500 | 1,069,300 | ||
Change in plan assets | ||||||
Fair Value of plan assets at beginning of year | [1] | 872,500 | 850,000 | |||
Actual return on plan assets | [1] | 38,800 | 68,600 | |||
Company contributions | [1] | 1,800 | 4,400 | |||
Expenses | [1] | (2,200) | (2,000) | |||
Benefits Paid | [1] | (47,000) | (48,500) | |||
Fair value of plan assets at end of year | [1] | 863,900 | [2] | 872,500 | 850,000 | |
Funded status at end of year | [1] | (125,900) | (175,000) | |||
Total Recognized | ||||||
Current liability | [1] | (20,200) | (6,500) | |||
Non-current liability | [1] | (105,700) | (168,500) | |||
Total Recognized | [1] | (125,900) | (175,000) | |||
Other post-retirement benefits | ||||||
Change in projected benefit obligation | ||||||
Benefit obligation at beginning of year | 309,000 | [3] | 324,300 | |||
Service cost | 5,300 | 5,800 | 4,600 | |||
Interest cost | 11,700 | 11,700 | 13,100 | |||
Change in plan benefits | 0 | 1,100 | ||||
Actuarial loss (gain) | (28,700) | (18,900) | ||||
Retiree contributions | 1,900 | 1,800 | ||||
Projected benefit obligation at end of year | 283,300 | [3] | 309,000 | [3] | 324,300 | |
Change in plan assets | ||||||
Fair Value of plan assets at beginning of year | 540,500 | 505,000 | ||||
Actual return on plan assets | 43,000 | 48,100 | ||||
Company contributions | 5,000 | 8,200 | ||||
Retiree Contributions and employer group waiver plan rebates | 1,900 | 1,800 | ||||
Expenses | (5,200) | (5,800) | ||||
Benefits Paid | (15,900) | (16,800) | ||||
Fair value of plan assets at end of year | 569,300 | 540,500 | $ 505,000 | |||
Funded status at end of year | 286,000 | 231,500 | ||||
Total Recognized | ||||||
Non-current asset | 286,000 | 231,500 | ||||
Total Recognized | $ 286,000 | $ 231,500 | ||||
[1] | The DB SERP and DB Restoration, included in pension benefits in the table above, does not include the amounts funded in rabbi trust. | |||||
[2] | This table does not include $20.2 million rabbi trust investments located in "Current Assets-Other", and $44.8 million rabbi trust investments located in "Deferred Charges and Other Assets-Other" on our consolidated balance sheets. Refer to Note 14— Fair Value Measurements for fair value of rabbi trust investments. | |||||
[3] | For the Health and Life Benefits, the change in projected benefit obligation represents the accumulated benefit obligation. |
Pension and Other Post-retire_5
Pension and Other Post-retirement Benefit Plans (Projected and ABO) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Sep. 30, 2017 |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 923.6 | $ 983.1 |
Accumulated benefit obligation | 859.1 | 905.8 |
DB SERP | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 62.2 | 60.2 |
Accumulated benefit obligation | 60.7 | 57.5 |
DB Restoration | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 4 | 4.2 |
Accumulated benefit obligation | $ 3 | $ 3 |
Pension and Other Post-retire_6
Pension and Other Post-retirement Benefit Plans (Unrecognized Costs Income Recorded on BS) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Unrecognized Costs/Income Recorded on the Balance Sheet | ||||
AOCI, tax expense (benefit) | $ 700 | $ 3,600 | ||
Deferred Income Tax Benefit | [1] | (45,019) | 114,966 | $ 163,879 |
Pension Plan | ||||
Unrecognized Costs/Income Recorded on the Balance Sheet | ||||
Unrecognized actuarial net loss | 61,000 | 136,100 | ||
Unrecognized prior service cost (credit) | 900 | 1,200 | ||
Total | 61,900 | 137,300 | ||
Regulatory asset | [2] | 48,200 | 119,600 | |
Pre-tax accumulated other comprehensive loss (gain) | [3] | 13,700 | 17,700 | |
Total | 61,900 | 137,300 | ||
Deferred Income Tax Benefit | 200 | 2,200 | ||
Other post-retirement benefits | ||||
Unrecognized Costs/Income Recorded on the Balance Sheet | ||||
Unrecognized actuarial net loss | (64,500) | (21,800) | ||
Unrecognized prior service cost (credit) | (107,200) | (124,900) | ||
Total | (171,700) | (146,700) | ||
Regulatory asset | [2] | (160,500) | (137,200) | |
Pre-tax accumulated other comprehensive loss (gain) | [3] | (11,200) | (9,500) | |
Total | $ (171,700) | $ (146,700) | ||
[1] | As a result of the merger with AltaGas, the Company is subject to two separate short periods and accompanying returns. The first period through July 6, 2018 is subjected to a higher, blended federal statutory rate. Due to the net operating loss for federal tax purposes through September 30, 2018, all current year activity is ultimately taxed at 21%. As such, for presentational purposes, we applied a 21% rate to the entire fiscal year activity. | |||
[2] | The regulatory liability recorded on our balance sheets at September 30, 2018 and 2017 is net of a deferred income tax benefit of $0.2 million and $2.2 million, respectively. | |||
[3] | The total amount of accumulated other comprehensive loss recorded on our balance sheets at September 30, 2018 and 2017 is net of an income tax benefit of $0.7 million and $3.6 million, respectively. |
Pension and Other Post-retire_7
Pension and Other Post-retirement Benefit Plans (Recognized in Curent and Next FY) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Pension Plan | Regulatory Assets and Liabilities | ||
Amounts Recognized During Current Fiscal Year | ||
Actuarial net loss | $ 13.5 | |
Prior service cost (credit) | 0.2 | |
Total | 13.7 | |
Amounts to be Recognized During Next Fiscal Year | ||
Actuarial net loss | 4 | |
Prior service cost (credit) | 0.1 | |
Total | 4.1 | |
Pension Plan | Accumulated Other Comprehensive Loss | ||
Amounts Recognized During Current Fiscal Year | ||
Actuarial net loss | 2.1 | |
Prior service cost (credit) | 0.1 | |
Total | 2.2 | |
Amounts to be Recognized During Next Fiscal Year | ||
Actuarial net loss | 1.5 | |
Prior service cost (credit) | 0.1 | |
Total | 1.6 | |
Health and Life Benefits | Regulatory Assets and Liabilities | ||
Amounts Recognized During Current Fiscal Year | ||
Actuarial net loss | 0 | |
Prior service cost (credit) | (16.5) | |
Total | (16.5) | |
Amounts to be Recognized During Next Fiscal Year | ||
Actuarial net loss | 0 | |
Prior service cost (credit) | (15.7) | |
Total | (15.7) | |
Health and Life Benefits | Accumulated Other Comprehensive Loss | ||
Amounts Recognized During Current Fiscal Year | ||
Actuarial net loss | 0 | |
Prior service cost (credit) | (1.1) | |
Total | (1.1) | |
Amounts to be Recognized During Next Fiscal Year | ||
Actuarial net loss | $ 0 | |
Prior service cost (credit) | (1.1) | |
Total | $ (1.1) |
Pension and Other Post-retire_8
Pension and Other Post-retirement Benefit Plans (Components of Net Periodic Benefit Cost Income) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Recognized prior service cost (credit) | $ 26,100 | $ 675 | [1] | $ 767 | [1] | $ 891 |
Recognized actuarial loss | (6,324) | [1] | (6,232) | [1] | 936 | |
Pension Plan | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Service cost | 14,900 | [2] | 16,500 | [2] | 14,200 | |
Interest cost | 39,600 | [2] | 38,400 | [2] | 41,300 | |
Expected return on plan assets | (42,300) | (41,000) | (40,900) | |||
Recognized prior service cost (credit) | 300 | 300 | 300 | |||
Recognized actuarial loss | 15,600 | 22,000 | 16,900 | |||
Net periodic benefit cost | 28,100 | 36,200 | 31,800 | |||
Amount allocated to construction projects | (4,700) | (6,400) | (5,600) | |||
Amount deferred as regulatory asset (liability)-net | 6,900 | 6,900 | 7,100 | |||
Amount charged (credited) to expense | 30,300 | 36,700 | 33,300 | |||
Health and Life Benefits | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Service cost | 5,300 | 5,800 | 4,600 | |||
Interest cost | 11,700 | 11,700 | 13,100 | |||
Expected return on plan assets | (23,700) | (22,100) | (20,400) | |||
Recognized prior service cost (credit) | (17,600) | (17,700) | (17,700) | |||
Recognized actuarial loss | 0 | 1,900 | 1,200 | |||
Net periodic benefit cost | (24,300) | (20,400) | (19,200) | |||
Amount allocated to construction projects | 4,000 | 4,600 | 4,100 | |||
Amount deferred as regulatory asset (liability)-net | 0 | 0 | (200) | |||
Amount charged (credited) to expense | $ (20,300) | $ (15,800) | $ (15,300) | |||
[1] | These accumulated other comprehensive income (loss) components are included in the computation of net periodic benefit cost. Refer to Note 9—Pension and other post-retirement benefit plans for additional details. | |||||
[2] | The DB SERP and DB Restoration, included in pension benefits in the table above, does not include the amounts funded in rabbi trust. |
Pension and Other Post-retire_9
Pension and Other Post-retirement Benefit Plans (Benefit Obligations and Net Periodic Benefit Cost Assumptions) (Details) | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Pension Plan | ||||
Net Periodic Benefit Cost Assumptions [Abstract] | ||||
Expected long-term return on plan assets | [1] | 5.75% | 5.75% | 6.00% |
Pension Plan | Maximum | ||||
Benefit Obligations Assumptions [Abstract] | ||||
Discount rate | [2] | 4.40% | 3.90% | |
Rate of compensation increase | 4.10% | 4.10% | ||
Net Periodic Benefit Cost Assumptions [Abstract] | ||||
Discount rate | [3] | 3.90% | 3.70% | 4.50% |
Rate of compensation increase | [4] | 4.10% | 4.10% | 4.10% |
Pension Plan | Minimum | ||||
Benefit Obligations Assumptions [Abstract] | ||||
Discount rate | [2] | 4.30% | 3.60% | |
Rate of compensation increase | 3.50% | 3.50% | ||
Net Periodic Benefit Cost Assumptions [Abstract] | ||||
Discount rate | [3] | 3.60% | 3.40% | 4.10% |
Rate of compensation increase | [4] | 3.50% | 3.50% | 3.50% |
Health and Life Benefits | ||||
Benefit Obligations Assumptions [Abstract] | ||||
Discount rate | [2] | 4.40% | 3.90% | |
Rate of compensation increase | 4.10% | 4.10% | ||
Net Periodic Benefit Cost Assumptions [Abstract] | ||||
Discount rate | [3] | 3.90% | 3.70% | 4.50% |
Expected long-term return on plan assets | [1] | 5.50% | 5.50% | 5.75% |
Rate of compensation increase | [4] | 4.10% | 4.10% | 4.10% |
Assumed Income Tax Rate | 42.20% | |||
[1] | For health and life benefits, the expected returns for certain funds may be lower due to certain portions of income that are subject to an assumed income tax rate of 42.2%. | |||
[2] | The increase in the discount rate in fiscal year 2018 compared to prior year primarily reflects the increase in long-term interest rates. | |||
[3] | The changes in the discount rates over the last three fiscal years primarily reflect the changes in long-term interest rates. | |||
[4] | The changes in the rate of compensation reflects the best estimates of actual future compensation levels including consideration of general price levels, productivity, seniority, promotion, and other factors such as inflation rates. |
Pension and Other Post-retir_10
Pension and Other Post-retirement Benefit Plans (Healthcare Trends) (Details) $ in Millions | 12 Months Ended |
Sep. 30, 2018USD ($) | |
Defined Benefit Plan, Assumed Health Care Cost Trend Rates [Abstract] | |
Increase one percentage point total service and interest cost components | $ 0.6 |
Decrease one percentage point total service and interest cost components | (0.5) |
Increase one percentage point post-retirement benefit obligation | 5.2 |
Decrease one percentage point post-retirement benefit obligation | $ (4.6) |
Pension and Other Post-retir_11
Pension and Other Post-retirement Benefit Plans (Plan Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Current assets-other | $ 38,363 | $ 26,556 | ||
Deferred charges and other assets-other | 59,201 | 11,671 | ||
Rabbi Trusts | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Deferred charges and other assets-other | 40,300 | |||
Pension Plan | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Fair value of plan investments | 492,600 | 513,200 | ||
Total fair value of plan investments | 861,000 | 875,200 | ||
Receivable (Payable) | [1] | 2,900 | (2,700) | |
Fair value of plan assets at end of year | [2] | $ 863,900 | [3] | $ 872,500 |
Percentage of fair value of plan investments | 57.20% | 58.80% | ||
Total fair value of plan assets (%) | 99.70% | 100.30% | ||
Percent Receivable (Payable) | [1] | 0.30% | (0.30%) | |
Total plan assets percent | 100.00% | [3] | 100.00% | |
Pension Plan | Level 1 | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Fair value of plan investments | $ 44,600 | $ 42,100 | ||
Pension Plan | Level 2 | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Fair value of plan investments | 448,000 | 471,100 | ||
Pension Plan | Level 3 | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Fair value of plan investments | 0 | 0 | ||
Pension Plan | Cash and Cash Equivalents | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Fair value of plan investments | $ 2,200 | $ 700 | ||
Percentage of fair value of plan investments | 0.30% | 0.10% | ||
Pension Plan | Cash and Cash Equivalents | Level 1 | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Fair value of plan investments | $ 2,200 | $ 700 | ||
Pension Plan | Equity Securities Preferred | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Fair value of plan investments | $ 2,100 | $ 600 | ||
Percentage of fair value of plan investments | 0.20% | 0.10% | ||
Pension Plan | Equity Securities Preferred | Level 2 | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Fair value of plan investments | $ 2,100 | $ 600 | ||
Pension Plan | US Treasury Securities | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Fair value of plan investments | $ 127,600 | $ 140,900 | ||
Percentage of fair value of plan investments | 14.80% | 16.20% | ||
Pension Plan | US Treasury Securities | Level 2 | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Fair value of plan investments | $ 127,600 | $ 140,900 | ||
Pension Plan | Domestic Corporate Debt Securities | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Fair value of plan investments | $ 227,800 | $ 232,300 | ||
Percentage of fair value of plan investments | 26.40% | 26.60% | ||
Pension Plan | Domestic Corporate Debt Securities | Level 2 | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Fair value of plan investments | $ 227,800 | $ 232,300 | ||
Pension Plan | U S Government Agencies And Sponsored Entities Debt Securities | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Fair value of plan investments | $ 28,300 | $ 20,000 | ||
Percentage of fair value of plan investments | 3.30% | 2.30% | ||
Pension Plan | U S Government Agencies And Sponsored Entities Debt Securities | Level 2 | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Fair value of plan investments | $ 28,300 | $ 20,000 | ||
Pension Plan | Asset-backed Securities | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Fair value of plan investments | $ 500 | $ 2,000 | ||
Percentage of fair value of plan investments | 0.10% | 0.20% | ||
Pension Plan | Asset-backed Securities | Level 2 | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Fair value of plan investments | $ 500 | $ 2,000 | ||
Pension Plan | Municipalities | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Fair value of plan investments | $ 8,300 | $ 14,900 | ||
Percentage of fair value of plan investments | 1.00% | 1.70% | ||
Pension Plan | Municipalities | Level 2 | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Fair value of plan investments | $ 8,300 | $ 14,900 | ||
Pension Plan | Foreign Corporate Debt Securities | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Fair value of plan investments | $ 47,100 | $ 48,100 | ||
Percentage of fair value of plan investments | 5.50% | 5.50% | ||
Pension Plan | Foreign Corporate Debt Securities | Level 2 | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Fair value of plan investments | $ 47,100 | $ 48,100 | ||
Pension Plan | Repurchase Agreements | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Fair value of plan investments | [4] | $ 0 | $ 3,700 | |
Percentage of fair value of plan investments | [4] | 0.00% | 0.40% | |
Pension Plan | Fixed Income Securities Other | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Fair value of plan investments | [5] | $ 5,200 | $ 6,700 | |
Percentage of fair value of plan investments | [5] | 0.60% | 0.80% | |
Pension Plan | Fixed Income Securities Other | Level 2 | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Fair value of plan investments | [5] | $ 5,200 | $ 6,700 | |
Pension Plan | Mutual Funds | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Fair value of plan investments | [6] | $ 42,400 | $ 41,400 | |
Percentage of fair value of plan investments | [6] | 4.90% | 4.70% | |
Pension Plan | Mutual Funds | Level 1 | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Fair value of plan investments | [6] | $ 42,400 | $ 41,400 | |
Pension Plan | Derivatives | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Fair value of plan investments | [7] | $ 1,100 | $ 1,900 | |
Percentage of fair value of plan investments | [7] | 0.10% | 0.20% | |
Pension Plan | Derivatives | Level 2 | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Fair value of plan investments | [7] | $ 1,100 | $ 1,900 | |
Pension Plan | Commingled Funds And Pooled Separate Accounts | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Fair value of plan investments | [8],[9] | $ 329,300 | $ 324,400 | |
Percentage of fair value of plan investments | [8],[9] | 38.00% | 37.20% | |
Pension Plan | Large Cap U.S. Companies Common Stock | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Allocation of investments in comingled funds and pooled separate accounts | 90.00% | 90.00% | ||
Pension Plan | Income Producing Properties | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Allocation of investments in comingled funds and pooled separate accounts | 8.00% | 8.00% | ||
Pension Plan | Short-term money market investments | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Allocation of investments in comingled funds and pooled separate accounts | 2.00% | 2.00% | ||
Pension Plan | Private Equity / Limited Partnership | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Fair value of plan investments | [9],[10] | $ 39,100 | $ 37,600 | |
Percentage of fair value of plan investments | [9],[10] | 4.50% | 4.30% | |
DB Restoration | Rabbi Trusts | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Current assets-other | $ 20,200 | |||
Repurchase Agreements | Fixed Income Securities Other | Level 2 | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Fair value of plan investments | [4] | 0 | $ 3,700 | |
Health and Life Benefits | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Fair value of plan investments | 127,100 | 95,800 | ||
Total fair value of plan investments | 568,700 | 539,800 | ||
Receivable (Payable) | [11] | 600 | 700 | |
Fair value of plan assets at end of year | $ 569,300 | $ 540,500 | ||
Percentage of fair value of plan investments | 22.30% | 17.80% | ||
Total fair value of plan assets (%) | 99.90% | 99.90% | ||
Percent Receivable (Payable) | [11] | 0.10% | 0.10% | |
Total plan assets percent | 100.00% | 100.00% | ||
Health and Life Benefits | Level 1 | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Fair value of plan investments | $ 2,900 | $ 2,600 | ||
Health and Life Benefits | Level 2 | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Fair value of plan investments | 124,200 | 93,200 | ||
Health and Life Benefits | Cash and Cash Equivalents | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Fair value of plan investments | $ 2,900 | $ 2,600 | ||
Percentage of fair value of plan investments | 0.50% | 0.50% | ||
Health and Life Benefits | Cash and Cash Equivalents | Level 1 | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Fair value of plan investments | $ 2,900 | $ 2,600 | ||
Health and Life Benefits | US Treasury Securities | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Fair value of plan investments | $ 50,100 | $ 36,000 | ||
Percentage of fair value of plan investments | 8.80% | 6.70% | ||
Health and Life Benefits | US Treasury Securities | Level 2 | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Fair value of plan investments | $ 50,100 | $ 36,000 | ||
Health and Life Benefits | Domestic Corporate Debt Securities | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Fair value of plan investments | $ 55,000 | $ 41,900 | ||
Percentage of fair value of plan investments | 9.80% | 7.80% | ||
Health and Life Benefits | Domestic Corporate Debt Securities | Level 2 | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Fair value of plan investments | $ 55,000 | $ 41,900 | ||
Health and Life Benefits | US Government Agencies Debt Securities | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Fair value of plan investments | $ 1,900 | $ 1,700 | ||
Percentage of fair value of plan investments | 0.30% | 0.30% | ||
Health and Life Benefits | US Government Agencies Debt Securities | Level 2 | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Fair value of plan investments | $ 1,900 | $ 1,700 | ||
Health and Life Benefits | Municipalities | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Fair value of plan investments | $ 4,700 | $ 3,600 | ||
Percentage of fair value of plan investments | 0.80% | 0.70% | ||
Health and Life Benefits | Municipalities | Level 2 | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Fair value of plan investments | $ 4,700 | $ 3,600 | ||
Health and Life Benefits | Foreign Corporate Debt Securities | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Fair value of plan investments | $ 9,100 | $ 7,200 | ||
Percentage of fair value of plan investments | 1.60% | 1.30% | ||
Health and Life Benefits | Foreign Corporate Debt Securities | Level 2 | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Fair value of plan investments | $ 9,100 | $ 7,200 | ||
Health and Life Benefits | Fixed Income Securities Other | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Fair value of plan investments | [12] | $ 3,400 | $ 2,800 | |
Percentage of fair value of plan investments | [12] | 0.60% | 0.50% | |
Health and Life Benefits | Fixed Income Securities Other | Level 2 | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Fair value of plan investments | [12] | $ 3,400 | $ 2,800 | |
Health and Life Benefits | Commingled Funds | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Fair value of plan investments | [13],[14] | $ 441,600 | $ 444,000 | |
Percentage of fair value of plan investments | [13],[14] | 77.60% | 82.10% | |
WGL | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Current assets-other | $ 20,200 | |||
WGL | Rabbi Trusts | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||||
Current assets-other | 20,200 | |||
Deferred charges and other assets-other | $ 44,800 | |||
[1] | At September 30, 2018 and 2017, this net payable primarily represents pending trades for investments purchased net of pending trades for investments sold and interest receivable. | |||
[2] | The DB SERP and DB Restoration, included in pension benefits in the table above, does not include the amounts funded in rabbi trust. | |||
[3] | This table does not include $20.2 million rabbi trust investments located in "Current Assets-Other", and $44.8 million rabbi trust investments located in "Deferred Charges and Other Assets-Other" on our consolidated balance sheets. Refer to Note 14— Fair Value Measurements for fair value of rabbi trust investments. | |||
[4] | This category includes Treasury Bills with a pre-commitment from the counterparty to repurchase the same securities on the next business day at an agreed-upon price. | |||
[5] | This category primarily includes non-U.S. government bonds as of September 30, 2018 and 2017. | |||
[6] | At September 30, 2018 and 2017, the investment in a mutual fund consisted primarily of common stock of non-U.S. based companies. | |||
[7] | At September 30, 2018 and 2017, this category included a combination of long-term U.S. Treasury interest rate future contracts, currency forwards, currency option interest rate swaps, and put and call options on both interest rate swaps and credit default swap index products. | |||
[8] | As of September 30, 2018 and 2017, investments in commingled funds and a pooled separate account consisted of approximately 90% common stock U.S companies; 8% income producing properties located in the United States; and 2% short-term money market investments. | |||
[9] | In accordance with ASC Topic 820, these investments are measured at fair value using NAV per share as a practical expedient and, therefore, have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliations of the fair value hierarchy to the statements of net assets available for plan benefits. | |||
[10] | At September 30, 2018 and 2017, investments in a private equity/limited partnership consisted of common stock of international companies. | |||
[11] | At September 30, 2018 and 2017, this net receivable primarily represents pending trades for investments sold and interest receivable net of pending trades for investments purchased. | |||
[12] | At September 30, 2018 and 2017, this category consisted primarily of non-U.S. government bonds. | |||
[13] | At September 30, 2018, investments held by commingled funds in which the plan invests consisted primarily of 58% of common stock of large-cap U.S. companies, 17% of U.S. Government fixed income securities and 25% of corporate bonds. At September 30, 2017, investments held by commingled funds in which the plan invests consisted primarily of 67% of common stock of large-cap U.S. companies,13% of U.S. Government fixed income securities and 20% of corporate bonds. | |||
[14] | In accordance with ASC Topic 820, these investments are measured at fair value using Net Asset Value (NAV) per share as a practical expedient and, therefore, have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliations of the fair value hierarchy to the statements of net assets available for plan benefits |
Pension and Other Post-retir_12
Pension and Other Post-retirement Benefit Plans (Pension Plan Assets-Footnotes) (Details) | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Large Cap U.S. Companies Common Stock | Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Allocation of investments in comingled funds and pooled separate accounts | 90.00% | 90.00% |
Large Cap U.S. Companies Common Stock | Health and Life Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Allocation of investments in comingled funds | 58.00% | 67.00% |
Income Producing Properties | Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Allocation of investments in comingled funds and pooled separate accounts | 8.00% | 8.00% |
Short-term money market investments | Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Allocation of investments in comingled funds and pooled separate accounts | 2.00% | 2.00% |
U.S. government fixed income securities | Health and Life Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Allocation of investments in comingled funds | 17.00% | 13.00% |
Corporate Bonds | Health and Life Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Allocation of investments in comingled funds | 25.00% | 20.00% |
Pension and Other Post-retir_13
Pension and Other Post-retirement Benefit Plans (Expected Benefit Payments) (Details) $ in Millions | Sep. 30, 2018USD ($) |
Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | $ 68.2 |
2,020 | 53.1 |
2,021 | 55.1 |
2,022 | 56.2 |
2,023 | 58.4 |
2024—2028 | 293.8 |
Health and Life Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | 16.6 |
2,020 | 15.9 |
2,021 | 15.9 |
2,022 | 16 |
2,023 | 16.1 |
2024—2028 | $ 81.5 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) | Jul. 06, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated Share-based Compensation Expense | $ 16,400,000 | $ 11,500,000 | ||
Tax benefit from compensation expense | 6,500,000 | $ 4,600,000 | ||
Intrinsic Value Performance Shares Vested | $ 17.8 | 10,200,000 | ||
Accounts payable and other accrued liabilities-other | 64,600,000 | 27,200,000 | ||
Deferred Credits-other | $ 61,400,000 | $ 107,792,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | 3 years | 3 years | |
Performance Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Cash Paid To Settle Performance Unit Awards | $ 8,900,000 | $ 6,900,000 | ||
Shares granted during the period | 5,456,077 | |||
Liability for Equity Option Awards Outstanding | 17,600,000 | |||
Accounts payable and other accrued liabilities-other | 8,900,000 | |||
Deferred Credits-other | 8,700,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Intrinsic Value, Amount Per Share | $ 1 | |||
Performance Units | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 0.00% | |||
Performance Units | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 200.00% | |||
Performance Units | Performance Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Intrinsic Value, Amount Per Share | $ 1 | |||
Directors Stock Compensation Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares authorized for issue under plan | 270,000 | |||
Allocated Share-based Compensation Expense | $ 800,000 | $ 800,000 | $ 800,000 | |
Shares granted during the period | 9,000 | 10,000 | 13,000 | |
Weighted-average grant date fair value, vested | $ 85.84 | $ 76.28 | $ 62.99 | |
Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted during the period | 64,796 | |||
Weighted-average grant date fair value, vested | $ 44.44 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||
Performance Shares | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 0.00% | 0.00% | ||
Performance Shares | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 200.00% | 200.00% | ||
Modification Event | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Deferred Credits-other | $ 3,400,000 | |||
Business Acquisition, Share Price | $ 88.25 | |||
Unrecognized compensation expense | $ 5,500,000 | |||
Period for Recognition | 2 years | |||
Modification Event | Fiscal years 2017 and 2016 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Business Acquisition, Share Price | 88.25 | |||
Cash paid to settle accelerated stock compensation plans | $ 32,400,000 | |||
Modification Event | Fiscal year 2018 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated Share-based Compensation Expense | 20,300,000 | |||
Business Acquisition, Share Price | 88.25 | |||
One time charge for the acceleration of grants | $ 7,900,000 | |||
Modification Event | Performance Units | Fiscal year 2018 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Intrinsic Value, Amount Per Share | 1 | |||
Modification Event | Stock Compensation Plan | Fiscal years 2017 and 2016 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Intrinsic Value, Amount Per Share | $ 1 |
Stock-Based Compensation (Perfo
Stock-Based Compensation (Performance Shares and Units) (Details) - $ / shares | 12 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |||
Performance Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |||||
Non-vested and outstanding, beginning of year | 274,882 | ||||
Granted | 64,796 | ||||
Settled | (105,748) | ||||
Accelerated due to merger | (159,778) | ||||
Cancelled/Forfeited | (10,074) | ||||
Non-vested and outstanding, end of year | 0 | [1] | 274,882 | ||
Converted to a cash award | [1] | 64,078 | |||
Weighted-average grant date fair value, non-vested and outstanding, beginning of year | $ 57.05 | ||||
Weighted-average grant date fair value, granted | 84.20 | ||||
Weighted-average grant date fair value, settled | 44.44 | ||||
Weighted-average grant date fair value, accelerated due to merger | 64.94 | ||||
Weighted-average grant date fair value, cancelled/forfeited | 66.24 | ||||
Weighted-average grant date fair value, non-vested and outstanding, end of year | 0 | [1] | $ 57.05 | ||
Weighted-average grant date fair value, converted to a cash award | [1] | $ 88.25 | |||
Performance Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |||||
Non-vested and outstanding, beginning of year | 14,631,998 | ||||
Granted | 5,456,077 | ||||
Settled | (4,454,200) | ||||
Accelerated due to merger | (9,615,564) | ||||
Cancelled/Forfeited | (622,690) | ||||
Non-vested and outstanding, end of year | 0 | [2] | 14,631,998 | ||
Converted to a cash award | [2] | 5,395,621 | |||
Minimum | Performance Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 0.00% | 0.00% | |||
Minimum | Performance Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 0.00% | ||||
Maximum | Performance Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 200.00% | 200.00% | |||
Maximum | Performance Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 200.00% | ||||
[1] | Due to the modification event, these shares were converted to a cash award at target and are no longer performance-based. | ||||
[2] | Due to the modification event, these units are no longer performance-based and were converted to a fixed cash amount at a value of $1.00 per unit. |
Stock-Based Compensation (Fair
Stock-Based Compensation (Fair Value Assumptions) (Details) | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Minimum | Performance Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 0.00% | ||
Minimum | Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 0.00% | 0.00% | |
Maximum | Performance Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 200.00% | ||
Maximum | Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 200.00% | 200.00% |
Environmental Matters (Narrativ
Environmental Matters (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018USD ($)site | Sep. 30, 2017USD ($) | ||
Site Contingency [Line Items] | |||
Regulatory Assets, Noncurrent | $ 104,578 | $ 104,596 | |
District of Columbia | |||
Site Contingency [Line Items] | |||
Recovery of environmental response costs term | 3 years | ||
Washington Gas Light Company | |||
Site Contingency [Line Items] | |||
Number of Sites | site | 10 | ||
Estimated maximum liability | $ 27,300 | 24,000 | |
Regulatory Assets, Noncurrent | 104,050 | 104,538 | |
Washington Gas Light Company | Reserve for Environmental Costs | |||
Site Contingency [Line Items] | |||
Accrual for environmental loss contingencies | 10,200 | 7,700 | |
Washington Gas Light Company | Environmental response costs | |||
Site Contingency [Line Items] | |||
Regulatory Assets, Noncurrent | [1],[2] | $ 5,000 | $ 2,500 |
[1] | This balance represents allowed environmental remediation expenditures at Washington Gas sites to be recovered through rates for Maryland and the District of Columbia. The recovery period is over several years. | ||
[2] | Washington Gas does not earn its overall rate of return on these assets. Washington Gas is allowed to recover and required to pay, using short-term interest rates, the carrying costs related to billed gas costs due from and to its customers in the District of Columbia and Virginia jurisdictions. |
Commitments and Contingencies_2
Commitments and Contingencies (Narrative) (Details) | Apr. 04, 2018USD ($) | Apr. 17, 2017USD ($) | Dec. 01, 2016 | Sep. 30, 2018USD ($)company | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Jun. 29, 2018USD ($) |
Commitments and Contingencies [Line Items] | |||||||
Rent Expense | $ 9,000,000 | $ 8,700,000 | $ 8,400,000 | ||||
Interest Expense | 62,133,000 | 74,026,000 | 52,310,000 | ||||
Virginia | |||||||
Commitments and Contingencies [Line Items] | |||||||
Regulatory Liabilities, Current | 13,000,000 | ||||||
District of Columbia | |||||||
Commitments and Contingencies [Line Items] | |||||||
Regulatory Liabilities, Current | 5,100,000 | ||||||
District of Columbia - Application for approval of reduction of distribution rates [Member] | |||||||
Commitments and Contingencies [Line Items] | |||||||
Regulatory Liabilities, Current | $ 8,300,000 | ||||||
Virginia rate case | |||||||
Commitments and Contingencies [Line Items] | |||||||
Approved Rate Increase | $ 34,000,000 | ||||||
Refundable Gas Costs | 900,000 | ||||||
Virginia SAVE program | |||||||
Commitments and Contingencies [Line Items] | |||||||
Approved Rate Increase | $ 14,100,000 | ||||||
Washington Gas Light Company | |||||||
Commitments and Contingencies [Line Items] | |||||||
Interest Expense | $ 58,504,000 | $ 52,207,000 | $ 41,444,000 | ||||
Number Of Service Agreements With Pipeline Companies | company | 4 | ||||||
Washington Gas Light Company | External Partners | Performance Guarantee | |||||||
Commitments and Contingencies [Line Items] | |||||||
Unrecorded Unconditional Purchase Obligation | $ 0 | ||||||
WGL Midstream | |||||||
Commitments and Contingencies [Line Items] | |||||||
Losses associated with contract dispute | 29,600,000 | ||||||
WGL Midstream | Antero Contract | |||||||
Commitments and Contingencies [Line Items] | |||||||
Damages sought | $ 100,000,000 | ||||||
Minimum | Virginia rate case | |||||||
Commitments and Contingencies [Line Items] | |||||||
Public Utilities, Requested Return on Equity, Percentage | 9.00% | ||||||
Maximum | Virginia rate case | |||||||
Commitments and Contingencies [Line Items] | |||||||
Public Utilities, Requested Return on Equity, Percentage | 10.00% | ||||||
Interest Rate Swap | |||||||
Commitments and Contingencies [Line Items] | |||||||
Interest Expense | $ 19,400,000 |
Committments and Contingencies
Committments and Contingencies - Tables (Details) $ in Millions | Sep. 30, 2018USD ($) | |
Minimum Payments Under Operating Leases | ||
2,018 | $ 5.6 | [1] |
2,019 | 9.2 | [1] |
2,020 | 10.1 | [1] |
2,021 | 9.6 | [1] |
2,022 | 9.7 | [1] |
Thereafter | 86.6 | [1] |
Total | 130.8 | [1] |
Washington Gas Light Company | Gas Purchase Committments | ||
Contract Minimums | ||
2,018 | 439.6 | [2] |
2,019 | 387 | [2] |
2,020 | 362.2 | [2] |
2,021 | 348.2 | [2] |
2,022 | 327.7 | [2] |
Thereafter | 2,672.5 | [2] |
Total | 4,537.2 | [2] |
Washington Gas Light Company | Pipeline Contracts | ||
Contract Minimums | ||
2,018 | 482.4 | [3] |
2,019 | 372.6 | [3] |
2,020 | 364.7 | [3] |
2,021 | 361 | [3] |
2,022 | 360.5 | [3] |
Thereafter | 1,192.9 | [3] |
Total | 3,134.1 | [3] |
WGL Energy Services | Gas Purchase Committments | ||
Contract Minimums | ||
2,018 | 190.4 | [4] |
2,019 | 100.2 | [4] |
2,020 | 42 | [4] |
2,021 | 12.2 | [4] |
2,022 | 3.3 | [4] |
Thereafter | 0.4 | [4] |
Total | 348.5 | [4] |
WGL Energy Services | Pipeline Contracts | ||
Contract Minimums | ||
2,018 | 3.2 | [5] |
2,019 | 1.7 | [5] |
2,020 | 1.1 | [5] |
2,021 | 0.3 | [5] |
2,022 | 0.3 | [5] |
Thereafter | 0.3 | [5] |
Total | 6.9 | [5] |
WGL Energy Services | Electric Purchase Commitments | ||
Contract Minimums | ||
2,018 | 328.8 | [6] |
2,019 | 213.8 | [6] |
2,020 | 97 | [6] |
2,021 | 32.9 | [6] |
2,022 | 1.9 | [6] |
Thereafter | 0.3 | [6] |
Total | 674.7 | [6] |
Commitments related to renewable energy credits | 31.6 | |
WGL Midstream | Gas Purchase Committments | ||
Contract Minimums | ||
2,018 | 1,203.2 | [7] |
2,019 | 1,279.9 | [7] |
2,020 | 1,156.9 | [7] |
2,021 | 1,111.3 | [7] |
2,022 | 1,113.2 | [7] |
Thereafter | 17,740.2 | [7] |
Total | 23,604.7 | [7] |
WGL Midstream | Pipeline Contracts | ||
Contract Minimums | ||
2,018 | 216.6 | [5] |
2,019 | 220.3 | [5] |
2,020 | 209.4 | [5] |
2,021 | 205.3 | [5] |
2,022 | 197.1 | [5] |
Thereafter | 2,174.1 | [5] |
Total | 3,222.8 | [5] |
Non Utility Total | ||
Contract Minimums | ||
2,018 | 1,942.2 | |
2,019 | 1,815.9 | |
2,020 | 1,506.4 | |
2,021 | 1,362 | |
2,022 | 1,315.8 | |
Thereafter | 19,915.3 | |
Total | $ 27,857.6 | |
[1] | During the fiscal year 2018, we moved our headquarter to the office located at 1000 Maine Ave., S.W. Washington, D.C. The operating lease of the previous office located at 101 Constitution Ave., N.W. Washington, D.C. ended in August 2018. | |
[2] | Includes known and reasonably likely commitments to purchase natural gas. Cost estimates are based on forward market prices at September 30, 2018. | |
[3] | Represents minimum payments for natural gas transportation, storage and peaking contracts that have expiration dates through fiscal year 2045. | |
[4] | Represents fixed price commitments with city gate equivalent deliveries. | |
[5] | Represents minimum payments for natural gas transportation and storage contracts that have expiration dates through fiscal year 2044. | |
[6] | Represents electric purchase commitments that are based on existing fixed price and fixed volume contracts. Includes $31.6 million of commitments related to renewable energy credits. | |
[7] | Includes known and reasonably likely commitments to purchase natural gas. Cost estimates are based on forward market prices as of September 30, 2018. Certain of our gas purchase agreements have optionality, which may cause increases in these commitments. |
Derivative and Weather Relate_3
Derivative and Weather Related Instruments (Details) $ in Thousands, kWh in Millions, MMBTU in Millions | 3 Months Ended | 12 Months Ended | |||||
Jun. 30, 2018USD ($) | Sep. 30, 2018USD ($)kWhMMBTU | Sep. 30, 2017USD ($)kWhMMBTU | Sep. 30, 2016USD ($) | ||||
Asset Optimization [Abstract] | |||||||
Gain (Loss) on Asset Optimization Transactions Net Pretax | $ 34,300 | $ 82,900 | $ 43,800 | ||||
Unrealized Gains (Loss) On Asset Optimization Derivative Instruments Net Pretax | 10,400 | 49,300 | 12,000 | ||||
Balance Sheet Classification of Derivative Instruments | |||||||
Netting of Collateral | [1] | 21,600 | 9,000 | ||||
Total | [2],[3] | (87,100) | (111,900) | ||||
Interest Rate Derivatives [Abstract] | |||||||
Recorded to other comprehensive income | (6,341) | [4] | 49,610 | [4] | $ (39,289) | ||
Derivative Instruments Not Designated as Hedging Instruments | |||||||
Balance Sheet Classification of Derivative Instruments | |||||||
Gross Derivative Assets | [1] | 94,300 | 96,600 | ||||
Gross Derivative Liabilities | [1] | (203,000) | (217,500) | ||||
Current Assets—Derivatives | |||||||
Balance Sheet Classification of Derivative Instruments | |||||||
Total | [2],[3] | 36,400 | 15,300 | ||||
Current Assets—Derivatives | Derivative Instruments Not Designated as Hedging Instruments | |||||||
Balance Sheet Classification of Derivative Instruments | |||||||
Gross Derivative Assets | [1] | (39,600) | (26,600) | ||||
Gross Derivative Liabilities | [1] | (3,200) | (11,300) | ||||
Deferred Charges and Other Assets—Derivatives | |||||||
Balance Sheet Classification of Derivative Instruments | |||||||
Netting of Collateral | [1] | 0 | 100 | ||||
Total | [2],[3] | 20,600 | 38,400 | ||||
Deferred Charges and Other Assets—Derivatives | Derivative Instruments Not Designated as Hedging Instruments | |||||||
Balance Sheet Classification of Derivative Instruments | |||||||
Gross Derivative Assets | [1] | (21,800) | (38,900) | ||||
Gross Derivative Liabilities | [1] | (1,200) | (400) | ||||
Accounts Payable | |||||||
Balance Sheet Classification of Derivative Instruments | |||||||
Total | [2],[3] | (900) | 1,000 | ||||
Accounts Payable | Derivative Instruments Not Designated as Hedging Instruments | |||||||
Balance Sheet Classification of Derivative Instruments | |||||||
Gross Derivative Assets | [1] | 1,000 | |||||
Gross Derivative Liabilities | [1] | (900) | |||||
Current Liabilities—Derivatives | |||||||
Balance Sheet Classification of Derivative Instruments | |||||||
Netting of Collateral | [1] | (9,800) | (2,100) | ||||
Total | [2],[3] | (22,700) | (44,000) | ||||
Current Liabilities—Derivatives | Derivative Instruments Not Designated as Hedging Instruments | |||||||
Balance Sheet Classification of Derivative Instruments | |||||||
Gross Derivative Assets | [1] | 23,100 | 10,900 | ||||
Gross Derivative Liabilities | [1] | (55,600) | (57,000) | ||||
Deferred Credits—Derivatives | |||||||
Balance Sheet Classification of Derivative Instruments | |||||||
Netting of Collateral | [1] | 11,800 | 7,000 | ||||
Total | [2],[3] | (120,500) | (122,600) | ||||
Deferred Credits—Derivatives | Derivative Instruments Not Designated as Hedging Instruments | |||||||
Balance Sheet Classification of Derivative Instruments | |||||||
Gross Derivative Assets | [1] | 9,800 | 19,200 | ||||
Gross Derivative Liabilities | [1] | (142,100) | (148,800) | ||||
WGL Energy Services | |||||||
Derivative, Collateral [Abstract] | |||||||
Right to Reclaim Cash | 20,600 | 23,700 | |||||
Collateral Already Posted Aggregate Fair Value | 11,700 | 8,600 | |||||
WGL Midstream | |||||||
Derivative, Collateral [Abstract] | |||||||
Right to Reclaim Cash | 28,900 | 44,400 | |||||
Derivative, Collateral, Obligation to Return Cash | $ 400 | $ 1,600 | |||||
Asset optimization & trading | |||||||
Absolute Notional Amounts of Open Positions on Derivative Instruments | |||||||
Natural Gas Derivative Transaction, Volume | MMBTU | 2,694,300,000 | 2,166,350,000 | |||||
Retail sales | |||||||
Absolute Notional Amounts of Open Positions on Derivative Instruments | |||||||
Natural Gas Derivative Transaction, Volume | MMBTU | 11,080,000 | 12,430,000 | |||||
Electricity Derivative Transaction, Volume | kWh | 8,449.2 | 10,011.7 | |||||
Other risk-management activities | |||||||
Absolute Notional Amounts of Open Positions on Derivative Instruments | |||||||
Natural Gas Derivative Transaction, Volume | MMBTU | 142,180,000 | 154,670,000 | |||||
Electricity Derivative Transaction, Volume | kWh | [5] | 27,833.9 | 22,962.1 | ||||
Interest Rate Swap | |||||||
Absolute Notional Amounts of Open Positions on Derivative Instruments | |||||||
Interest Rate Swap | $ 250,000 | ||||||
Interest Rate Derivatives [Abstract] | |||||||
Recorded to other comprehensive income | $ 6,400 | ||||||
Washington Gas Light Company | |||||||
Derivative, Collateral [Abstract] | |||||||
Right to Reclaim Cash | $ 10,600 | 3,700 | |||||
Derivative, Collateral, Obligation to Return Cash | 2,700 | 100 | |||||
Balance Sheet Classification of Derivative Instruments | |||||||
Gross Derivative Assets | [1] | 27,500 | 24,000 | ||||
Gross Derivative Liabilities | [1] | (123,200) | (145,300) | ||||
Netting of Collateral | [1] | 2,800 | |||||
Total | [1],[3] | (92,900) | (121,300) | ||||
Washington Gas Light Company | Current Assets—Derivatives | |||||||
Balance Sheet Classification of Derivative Instruments | |||||||
Gross Derivative Assets | [1] | 17,800 | 7,500 | ||||
Gross Derivative Liabilities | [1] | (400) | (2,400) | ||||
Total | [1],[3] | 17,400 | 5,100 | ||||
Washington Gas Light Company | Deferred Charges and Other Assets—Derivatives | |||||||
Balance Sheet Classification of Derivative Instruments | |||||||
Gross Derivative Assets | [1] | 8,700 | 16,500 | ||||
Gross Derivative Liabilities | [1] | (300) | |||||
Total | [1],[3] | 8,700 | 16,200 | ||||
Washington Gas Light Company | Current Liabilities—Derivatives | |||||||
Balance Sheet Classification of Derivative Instruments | |||||||
Gross Derivative Assets | [1] | 2,600 | |||||
Gross Derivative Liabilities | [1] | (20,200) | (30,300) | ||||
Netting of Collateral | [1] | 2,800 | |||||
Total | [1],[3] | (14,800) | (30,300) | ||||
Washington Gas Light Company | Deferred Credits—Derivatives | |||||||
Balance Sheet Classification of Derivative Instruments | |||||||
Gross Derivative Assets | [1] | (1,600) | |||||
Gross Derivative Liabilities | [1] | (102,600) | (112,300) | ||||
Total | [1],[3] | $ (104,200) | $ (112,300) | ||||
Washington Gas Light Company | Asset optimization & trading | |||||||
Absolute Notional Amounts of Open Positions on Derivative Instruments | |||||||
Natural Gas Derivative Transaction, Volume | MMBTU | 1,358,000,000 | 1,122,300,000 | |||||
Washington Gas Light Company | Other risk-management activities | |||||||
Absolute Notional Amounts of Open Positions on Derivative Instruments | |||||||
Natural Gas Derivative Transaction, Volume | MMBTU | 106,600,000 | 118,100,000 | |||||
WGL | Interest Rate Swap | |||||||
Absolute Notional Amounts of Open Positions on Derivative Instruments | |||||||
Interest Rate Swap | $ 250,000 | ||||||
[1] | WGL and Washington Gas did not have derivative instruments outstanding that were designated as hedging instruments at September 30, 2018 or 2017. | ||||||
[2] | Balance is located in notes payable in the accompanying balance sheets. | ||||||
[3] | WGL has elected to offset the fair value of recognized derivative instruments against the right to reclaim or the obligation to return collateral for derivative instruments executed under the same master netting arrangement in accordance with ASC Topic 815. All recognized derivative contracts and associated financial collateral subject to a master netting arrangement or similar that is eligible for offset under ASC Topic 815 have been presented net in the balance sheet. | ||||||
[4] | Cash flow hedging instruments represent interest rate swap agreements related to debt issuances. Refer to Note 13—Derivative and Weather-related Instruments for further discussion of the interest rate swap agreements. | ||||||
[5] | Comprised primarily of financial swaps, financial transmission rights and physical forward purchases. |
Derivative and Weather Relate_4
Derivative and Weather Related Instruments (Gains and Losses) (Details) - USD ($) $ in Thousands | Jan. 31, 2018 | Jun. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |||
Gains and (Losses) on Derivative Instruments | ||||||||
Recorded to other comprehensive income | $ (6,341) | [1] | $ 49,610 | [1] | $ (39,289) | |||
Total | (6,700) | 235,400 | 18,500 | |||||
Amortization related to interest rate hedges | 200 | 200 | 200 | |||||
Interest Expense | 62,133 | 74,026 | 52,310 | |||||
Operating revenues—non-utility | ||||||||
Gains and (Losses) on Derivative Instruments | ||||||||
Recorded to income | (30,100) | 30,800 | 5,800 | |||||
Utility cost of gas | ||||||||
Gains and (Losses) on Derivative Instruments | ||||||||
Recorded to income | (2,100) | 50,100 | 12,100 | |||||
Non-utility cost of energy-related sales | ||||||||
Gains and (Losses) on Derivative Instruments | ||||||||
Recorded to income | 20,300 | 33,500 | 33,500 | |||||
Interest income (expense) | ||||||||
Gains and (Losses) on Derivative Instruments | ||||||||
Recorded to income | 19,200 | (5,800) | (200) | |||||
Gas costs | ||||||||
Gains and (Losses) on Derivative Instruments | ||||||||
Recorded to regulatory assets/liabilities | (7,600) | 77,200 | 13,900 | |||||
Other | ||||||||
Gains and (Losses) on Derivative Instruments | ||||||||
Recorded to regulatory assets/liabilities | [2] | (7,300) | ||||||
Recorded to other comprehensive income | ||||||||
Gains and (Losses) on Derivative Instruments | ||||||||
Recorded to other comprehensive income | [3] | (6,400) | 49,600 | (39,300) | ||||
Washington Gas Light Company | ||||||||
Gains and (Losses) on Derivative Instruments | ||||||||
Total | (9,700) | 127,300 | 18,700 | |||||
Interest Expense | 58,504 | 52,207 | 41,444 | |||||
Washington Gas Light Company | Utility cost of gas | ||||||||
Gains and (Losses) on Derivative Instruments | ||||||||
Recorded to income | (2,100) | 50,100 | 12,100 | |||||
Washington Gas Light Company | Gas costs | ||||||||
Gains and (Losses) on Derivative Instruments | ||||||||
Recorded to regulatory assets/liabilities | (7,600) | $ 77,200 | 13,900 | |||||
Washington Gas Light Company | Other | ||||||||
Gains and (Losses) on Derivative Instruments | ||||||||
Recorded to regulatory assets/liabilities | [2] | $ (7,300) | ||||||
Interest Rate Swap | ||||||||
Gains and (Losses) on Derivative Instruments | ||||||||
Recorded to other comprehensive income | $ 6,400 | |||||||
Gain (loss) on interest rate swap | $ 13,800 | |||||||
Interest Expense | $ 19,400 | |||||||
[1] | Cash flow hedging instruments represent interest rate swap agreements related to debt issuances. Refer to Note 13—Derivative and Weather-related Instruments for further discussion of the interest rate swap agreements. | |||||||
[2] | Represents the settlement of Washington Gas' forward starting interest rate swap in September 2016. | |||||||
[3] | Represents the effective portion of our cash flow hedges. Includes $0.2 million, $0.2 million, and $0.2 million of amortization of the losses related to interest rate hedges for WGL for September 30, 2018, 2017, and 2016 respectively. |
Derivative and Weather Relate_5
Derivative and Weather Related Instruments (Details 2) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018USD ($)Counterparties | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | |
WGL Energy Services | |||
Derivative [Line Items] | |||
Number of Counterparties | Counterparties | 4 | ||
Percentage Of Credit Exposure | 10.00% | ||
Obligation to counterparties | $ 1.1 | ||
WGL Energy Services | Weather Instruments | |||
Derivative [Line Items] | |||
Gain (losses) on weather related instruments, pretax | $ 3.2 | $ 1.4 | $ 1.7 |
WGL Midstream | |||
Derivative [Line Items] | |||
Number of Counterparties | Counterparties | 2 | ||
Percentage Of Credit Exposure | 10.00% | ||
Obligation to counterparties | $ 12.3 | ||
Washington Gas Light Company | |||
Derivative [Line Items] | |||
Derivative liabilities with credit-risk-contingent features | 0.4 | 2.8 | |
Maximum potential collateral requirements | $ 0.4 | 2.8 | |
Number of Counterparties | Counterparties | 3 | ||
Percentage Of Credit Exposure | 10.00% | ||
Obligation to counterparties | $ 29.2 | ||
WGL | |||
Derivative [Line Items] | |||
Derivative liabilities with credit-risk-contingent features | 5.7 | 25 | |
Maximum potential collateral requirements | $ 0.7 | $ 21.9 |
Fair Value Measurements Under t
Fair Value Measurements Under the Fair Value Hierarchy (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Sep. 30, 2017 |
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Assets | $ 94.3 | $ 96.6 |
Liabilities | (203) | (217.5) |
Natural Gas Related Derivatives | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Assets | 80.3 | 71.2 |
Liabilities | (178.4) | (182.9) |
Electricity Related Derivatives | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Assets | 14 | 15.6 |
Liabilities | (24.6) | (25.8) |
Interest Rate Swap | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Assets | 9.8 | |
Liabilities | (8.8) | |
Level 2 | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Assets | 31.1 | 28.3 |
Liabilities | (30.7) | (28.4) |
Level 2 | Natural Gas Related Derivatives | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Assets | 26.7 | 18.4 |
Liabilities | (30.6) | (15.5) |
Level 2 | Electricity Related Derivatives | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Assets | 4.4 | 0.1 |
Liabilities | (0.1) | (4.1) |
Level 2 | Interest Rate Swap | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Assets | 9.8 | |
Liabilities | (8.8) | |
Level 3 | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Assets | 63.2 | 68.3 |
Liabilities | (172.3) | (189.1) |
Level 3 | Natural Gas Related Derivatives | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Assets | 53.6 | 52.8 |
Liabilities | (147.8) | (167.4) |
Level 3 | Electricity Related Derivatives | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Assets | 9.6 | 15.5 |
Liabilities | (24.5) | (21.7) |
Washington Gas Light Company | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Assets | 27.5 | 24 |
Liabilities | (123.2) | (145.3) |
Washington Gas Light Company | Natural Gas Related Derivatives | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Assets | 27.5 | 24 |
Liabilities | (123.2) | (145.3) |
Washington Gas Light Company | Level 2 | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Assets | 3.9 | 7 |
Liabilities | (5.5) | (5.7) |
Washington Gas Light Company | Level 2 | Natural Gas Related Derivatives | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Assets | 3.9 | 7 |
Liabilities | (5.5) | (5.7) |
Washington Gas Light Company | Level 3 | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Assets | 23.6 | 17 |
Liabilities | (117.7) | (139.6) |
Washington Gas Light Company | Level 3 | Natural Gas Related Derivatives | ||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Assets | 23.6 | 17 |
Liabilities | $ (117.7) | $ (139.6) |
Fair Value Measurements (Quanti
Fair Value Measurements (Quantitative information WGLH) (Details) - USD ($) | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Oct. 01, 2017 | Oct. 01, 2016 | |
Fair Value Measurements Details [Line Items] | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs | $ (109,100,000) | $ (120,800,000) | $ (120,800,000) | $ (273,200,000) |
Natural Gas Related Derivatives | ||||
Fair Value Measurements Details [Line Items] | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs | (94,200,000) | (114,600,000) | (114,600,000) | (264,100,000) |
Electricity Related Derivatives | ||||
Fair Value Measurements Details [Line Items] | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs | (14,900,000) | (6,200,000) | (6,200,000) | (9,100,000) |
Washington Gas Light Company | Natural Gas Related Derivatives | ||||
Fair Value Measurements Details [Line Items] | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs | (94,100,000) | (122,600,000) | $ (122,600,000) | $ (251,600,000) |
Washington Gas Light Company | Natural Gas Related Derivatives | Discounted Cash Flow | ||||
Fair Value Measurements Details [Line Items] | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs | (94,100,000) | (122,600,000) | ||
Washington Gas Light Company | Natural Gas Related Derivatives | Discounted Cash Flow | Maximum | Natural Gas Basis Price | ||||
Fair Value Measurements Details [Line Items] | ||||
Input Price | 3.886 | 2.805 | ||
Washington Gas Light Company | Natural Gas Related Derivatives | Discounted Cash Flow | Minimum | Natural Gas Basis Price | ||||
Fair Value Measurements Details [Line Items] | ||||
Input Price | (1.003) | (1.928) | ||
WGL | Natural Gas Related Derivatives | Discounted Cash Flow | ||||
Fair Value Measurements Details [Line Items] | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs | (90,600,000) | (112,400,000) | ||
WGL | Natural Gas Related Derivatives | Discounted Cash Flow | Maximum | Natural Gas Basis Price | ||||
Fair Value Measurements Details [Line Items] | ||||
Input Price | 3.886 | 2.805 | ||
WGL | Natural Gas Related Derivatives | Discounted Cash Flow | Minimum | Natural Gas Basis Price | ||||
Fair Value Measurements Details [Line Items] | ||||
Input Price | (1.81) | (2.095) | ||
WGL | Natural Gas Related Derivatives | Option Model | ||||
Fair Value Measurements Details [Line Items] | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs | (3,600,000) | (2,200,000) | ||
WGL | Natural Gas Related Derivatives | Option Model | Maximum | Natural Gas Basis Price | ||||
Fair Value Measurements Details [Line Items] | ||||
Input Price | $ 3.710 | $ 2.358 | ||
Option Volatility Percentage | 901.00% | 566.80% | ||
WGL | Natural Gas Related Derivatives | Option Model | Minimum | Natural Gas Basis Price | ||||
Fair Value Measurements Details [Line Items] | ||||
Input Price | $ (0.0985) | $ (2.095) | ||
Option Volatility Percentage | 37.50% | 28.70% | ||
WGL | Electricity Related Derivatives | Discounted Cash Flow | ||||
Fair Value Measurements Details [Line Items] | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs | $ (14,900,000) | $ (6,200,000) | ||
WGL | Electricity Related Derivatives | Discounted Cash Flow | Maximum | Electricity Congestion Price | ||||
Fair Value Measurements Details [Line Items] | ||||
Input Price | 64.650 | 56.5 | ||
WGL | Electricity Related Derivatives | Discounted Cash Flow | Minimum | Electricity Congestion Price | ||||
Fair Value Measurements Details [Line Items] | ||||
Input Price | $ (6.257) | $ (2.736) |
Fair Value Measurements (Reconc
Fair Value Measurements (Reconciliation with Level 3 Inputs) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Oct. 01, 2017 | Oct. 01, 2016 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs | $ (109.1) | $ (120.8) | $ (120.8) | $ (273.2) |
Reconciliation of Fair Value Measurements Using Significant Level 3 Inputs | ||||
Recorded to Income | (28.4) | 54.4 | ||
Recorded to regulatory assets - gas costs | (10) | 69.7 | ||
Transfers into Level 3 | (6.8) | (0.8) | ||
Transfers out of Level 3 | 9.6 | (0.7) | ||
Purchases | 2.9 | 1 | ||
Settlements | 44.4 | 28.8 | ||
Natural Gas Related Derivatives | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs | (94.2) | (114.6) | (114.6) | (264.1) |
Reconciliation of Fair Value Measurements Using Significant Level 3 Inputs | ||||
Recorded to Income | (22.4) | 62 | ||
Recorded to regulatory assets - gas costs | (10) | 69.7 | ||
Transfers into Level 3 | (6.8) | (0.8) | ||
Transfers out of Level 3 | 9.6 | (0.7) | ||
Settlements | 50 | 19.3 | ||
Electricity Related Derivatives | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs | (14.9) | (6.2) | (6.2) | (9.1) |
Reconciliation of Fair Value Measurements Using Significant Level 3 Inputs | ||||
Recorded to Income | (6) | (7.6) | ||
Purchases | 2.9 | 1 | ||
Settlements | (5.6) | 9.5 | ||
Washington Gas Light Company | Natural Gas Related Derivatives | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs | (94.1) | (122.6) | $ (122.6) | $ (251.6) |
Reconciliation of Fair Value Measurements Using Significant Level 3 Inputs | ||||
Recorded to Income | (4.5) | 44.2 | ||
Recorded to regulatory assets - gas costs | (10) | 69.7 | ||
Transfers into Level 3 | (6.9) | (0.4) | ||
Transfers out of Level 3 | 8.9 | (0.4) | ||
Settlements | $ 41 | $ 15.9 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value of Financial Instruments) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Commercial Paper | $ 669,697 | $ 559,844 | ||
Current assets-other | 38,363 | 26,556 | ||
Deferred charges and other assets-other | 59,201 | 11,671 | ||
Washington Gas Light Company | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Commercial Paper | 163,478 | 166,772 | ||
Current assets-other | 20,347 | 102 | ||
Deferred charges and other assets-other | 49,331 | 3,561 | ||
Washington Gas Light Company | Cash and Cash Equivalents | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Money Market Funds | 2,300 | |||
Washington Gas Light Company | Rabbi Trusts | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Current assets-other | 20,207 | |||
Deferred charges and other assets-other | 44,775 | |||
Carrying Amount | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Money Market Funds | [1] | 117,900 | 11,800 | |
Commercial Paper | [2] | 587,500 | 505,000 | |
Project financing | [2] | 82,200 | 54,800 | |
Long-term debt | [3] | 1,879,900 | 1,430,900 | |
Carrying Amount | Washington Gas Light Company | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Money Market Funds | [1] | 67,300 | 4,800 | |
Commercial Paper | [2] | 95,000 | 123,000 | |
Project financing | 68,500 | 43,800 | [2] | |
Long-term debt | [3] | 1,084,900 | 1,134,500 | |
Fair Value | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Money Market Funds | [1] | 117,900 | 11,800 | |
Commercial Paper | [2] | 585,700 | 505,000 | |
Project financing | [2] | 82,200 | 54,800 | |
Long-term debt | [3] | 1,912,800 | 1,577,300 | |
Fair Value | Washington Gas Light Company | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Money Market Funds | [1] | 67,300 | 4,800 | |
Commercial Paper | [2] | 95,000 | 123,000 | |
Project financing | 68,500 | 43,800 | [2] | |
Long-term debt | [3] | 1,120,200 | $ 1,271,000 | |
WGL | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Current assets-other | 20,200 | |||
WGL | Cash and Cash Equivalents | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Money Market Funds | 52,900 | |||
WGL | Rabbi Trusts | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Current assets-other | 20,207 | |||
Deferred charges and other assets-other | 44,775 | |||
WGL | Washington Gas Light Company | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Current assets-other | $ 20,200 | |||
[1] | The balance as of September 30, 2018 includes $52.9 million and $2.3 million money market funds located in Cash and Cash equivalent for WGL and Washington Gas, respectively ,and $20.2 million rabbi trust investments located in "Current Assets-Other", and $44.8 million rabbi trust investments located in "Deferred Charges and Other Assets-Other" of the accompanying balance sheets for both WGL and Washington Gas . The balance as of September 2017 is located in Cash and Cash Equivalent. The amounts in cash and cash equivalent may be offset by outstanding checks. | |||
[2] | Balance is located in notes payable in the accompanying balance sheets. | |||
[3] | Includes adjustments for current maturities and unamortized discounts, as applicable. |
Fair Value Measurements (Realiz
Fair Value Measurements (Realized and Unrealized Gains and Losses with Level 3 Measurements) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Realized and Unrealized Gains (Losses) Recorded to Income for Level 3 Measurements | |||
Recorded to income | $ (28.4) | $ 54.4 | $ (3.1) |
Unrealized Gains (Losses) Recorded for Level 3 Measurements | |||
Recorded to regulatory assets - gas costs | (10) | 69.7 | |
Total Unrealized Gains (Losses) | (13.2) | 104.4 | 18.1 |
Natural Gas Related Derivatives | |||
Realized and Unrealized Gains (Losses) Recorded to Income for Level 3 Measurements | |||
Recorded to income | (22.4) | 62 | 18.3 |
Unrealized Gains (Losses) Recorded for Level 3 Measurements | |||
Recorded to regulatory assets - gas costs | (10) | 69.7 | |
Total Unrealized Gains (Losses) | (8) | 94.2 | 7.2 |
Electricity Related Derivatives | |||
Realized and Unrealized Gains (Losses) Recorded to Income for Level 3 Measurements | |||
Recorded to income | (6) | (7.6) | (21.4) |
Unrealized Gains (Losses) Recorded for Level 3 Measurements | |||
Total Unrealized Gains (Losses) | (5.2) | 10.2 | 10.9 |
Operating revenues—non-utility | |||
Realized and Unrealized Gains (Losses) Recorded to Income for Level 3 Measurements | |||
Recorded to income | (34.6) | (5.3) | (18.3) |
Unrealized Gains (Losses) Recorded for Level 3 Measurements | |||
Recorded to income | (35.5) | 13.4 | 7.6 |
Operating revenues—non-utility | Natural Gas Related Derivatives | |||
Realized and Unrealized Gains (Losses) Recorded to Income for Level 3 Measurements | |||
Recorded to income | (17.5) | 12.2 | 8.2 |
Unrealized Gains (Losses) Recorded for Level 3 Measurements | |||
Recorded to income | (14.6) | 12.6 | 9.9 |
Operating revenues—non-utility | Electricity Related Derivatives | |||
Realized and Unrealized Gains (Losses) Recorded to Income for Level 3 Measurements | |||
Recorded to income | (17.1) | (17.5) | (26.5) |
Unrealized Gains (Losses) Recorded for Level 3 Measurements | |||
Recorded to income | (20.9) | 0.8 | (2.3) |
Utility cost of gas | |||
Realized and Unrealized Gains (Losses) Recorded to Income for Level 3 Measurements | |||
Recorded to income | (4.5) | 44.2 | 4 |
Unrealized Gains (Losses) Recorded for Level 3 Measurements | |||
Recorded to income | 2.3 | 31 | 0.3 |
Utility cost of gas | Natural Gas Related Derivatives | |||
Realized and Unrealized Gains (Losses) Recorded to Income for Level 3 Measurements | |||
Recorded to income | (4.5) | 44.2 | 4 |
Unrealized Gains (Losses) Recorded for Level 3 Measurements | |||
Recorded to income | 2.3 | 31 | 0.3 |
Non-utility cost of energy-related sales | |||
Realized and Unrealized Gains (Losses) Recorded to Income for Level 3 Measurements | |||
Recorded to income | 10.7 | 15.5 | 11.2 |
Unrealized Gains (Losses) Recorded for Level 3 Measurements | |||
Recorded to income | 19.8 | 9 | 12.8 |
Non-utility cost of energy-related sales | Natural Gas Related Derivatives | |||
Realized and Unrealized Gains (Losses) Recorded to Income for Level 3 Measurements | |||
Recorded to income | (0.4) | 5.6 | 6.1 |
Unrealized Gains (Losses) Recorded for Level 3 Measurements | |||
Recorded to income | 4.1 | (0.4) | (0.4) |
Non-utility cost of energy-related sales | Electricity Related Derivatives | |||
Realized and Unrealized Gains (Losses) Recorded to Income for Level 3 Measurements | |||
Recorded to income | 11.1 | 9.9 | 5.1 |
Unrealized Gains (Losses) Recorded for Level 3 Measurements | |||
Recorded to income | 15.7 | 9.4 | 13.2 |
Regulatory asset-gas costs member | |||
Unrealized Gains (Losses) Recorded for Level 3 Measurements | |||
Recorded to regulatory assets - gas costs | 0.2 | 51 | (2.6) |
Regulatory asset-gas costs member | Natural Gas Related Derivatives | |||
Unrealized Gains (Losses) Recorded for Level 3 Measurements | |||
Recorded to regulatory assets - gas costs | 0.2 | 51 | (2.6) |
Washington Gas Light Company | Natural Gas Related Derivatives | |||
Realized and Unrealized Gains (Losses) Recorded to Income for Level 3 Measurements | |||
Recorded to income | (4.5) | 44.2 | 4 |
Unrealized Gains (Losses) Recorded for Level 3 Measurements | |||
Recorded to regulatory assets - gas costs | (10) | 69.7 | |
Total Unrealized Gains (Losses) | 2.5 | 82 | (2.3) |
Washington Gas Light Company | Utility cost of gas | Natural Gas Related Derivatives | |||
Realized and Unrealized Gains (Losses) Recorded to Income for Level 3 Measurements | |||
Recorded to income | (4.5) | 44.2 | 4 |
Unrealized Gains (Losses) Recorded for Level 3 Measurements | |||
Recorded to income | 2.3 | 31 | 0.3 |
Washington Gas Light Company | Regulatory asset-gas costs member | Natural Gas Related Derivatives | |||
Unrealized Gains (Losses) Recorded for Level 3 Measurements | |||
Recorded to regulatory assets - gas costs | $ 0.2 | $ 51 | $ (2.6) |
Fair Value Measurements (Nonrec
Fair Value Measurements (Nonrecurring Basis) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2018 | Mar. 31, 2018 | |
Washington Gas Light Company | ||
Fair Value Measurements [Line Items] | ||
Impairment of Oil and Gas Properties | $ 38 | |
WGL Midstream | Constitution | ||
Fair Value Measurements [Line Items] | ||
Equity Method Investment, Other than Temporary Impairment | $ 34 | |
Equity Method Investments, Fair Value Disclosure | $ 4 |
Operating Segment Reporting (De
Operating Segment Reporting (Details) $ in Thousands | 12 Months Ended | |||||
Sep. 30, 2018USD ($)segment | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | ||||
Segment Reporting Information [Line Items] | ||||||
Number of operating segments | segment | 4 | |||||
Operating revenues | [1] | $ 2,341,765 | $ 2,354,724 | $ 2,349,559 | ||
Operating revenues, regulated utility | 1,229,521 | 1,143,337 | 1,044,117 | |||
Operating revenues, non-utility | 1,112,244 | 1,211,387 | 1,305,442 | |||
Depreciation and amortization, regulated utility | 162,576 | 154,138 | 132,566 | |||
Depreciation and amortization | 162,576 | 154,138 | 132,566 | |||
Equity in earnings of unconsolidated affiliates | (5,791) | 20,216 | 13,806 | |||
EBIT | 59,344 | 379,125 | 319,298 | |||
Total Assets | 7,248,087 | 6,626,009 | 6,049,450 | |||
Capital Expenditures | 516,406 | 516,534 | 530,385 | |||
Equity Method Investments | 769,998 | 394,201 | 303,491 | |||
Retail energy-marketing | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating revenues, non-utility | [1] | 1,009,698 | 1,107,151 | 1,238,480 | ||
Depreciation and amortization | 1,084 | 1,141 | 1,154 | |||
EBIT | 31,491 | 53,195 | 64,968 | |||
Total Assets | 420,171 | 513,415 | 486,778 | |||
Capital Expenditures | 386 | 614 | 8,104 | |||
Commercial energy systems | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating revenues, non-utility | [1] | 79,809 | [2] | 95,178 | [2] | 89,072 |
Depreciation and amortization | 24,510 | [2] | 21,690 | [2] | 15,201 | |
Equity in earnings of unconsolidated affiliates | 7,303 | [2] | 7,620 | |||
EBIT | 34,878 | [2] | 40,834 | [2] | 21,992 | |
Total Assets | 1,014,612 | [2] | 1,031,921 | [2] | 885,734 | |
Capital Expenditures | 119,499 | [2] | 107,552 | [2] | 128,780 | |
Equity Method Investments | 9,578 | [2] | 66,100 | |||
WGL Midstream | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating revenues, non-utility | [1] | 40,551 | 31,339 | 6,619 | ||
Depreciation and amortization | 17 | 25 | 107 | |||
Equity in earnings of unconsolidated affiliates | (5,791) | 12,913 | 6,186 | |||
EBIT | 29,422 | 37,689 | 7,807 | |||
Total Assets | 1,038,380 | 699,560 | 485,099 | |||
Capital Expenditures | 60 | |||||
Equity Method Investments | 769,998 | 384,623 | 237,391 | |||
Other Activities | ||||||
Segment Reporting Information [Line Items] | ||||||
EBIT | (40,000) | (19,865) | (3,184) | |||
Total Assets | 478,437 | 409,938 | 273,738 | |||
Eliminations | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating revenues, non-utility | [1],[3] | (36,356) | (45,912) | (55,516) | ||
Depreciation and amortization | [3] | 60 | 51 | (25) | ||
EBIT | [3] | (4,369) | 965 | (504) | ||
Total Assets | [3] | (882,450) | (1,012,946) | (718,853) | ||
Regulated Utility | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating revenues, regulated utility | [1] | 1,248,063 | 1,166,968 | 1,070,904 | ||
Depreciation and amortization, regulated utility | 136,905 | 131,231 | 116,129 | |||
EBIT | 7,922 | 266,307 | 228,219 | |||
Total Assets | 5,178,937 | 4,984,121 | 4,636,954 | |||
Capital Expenditures | $ 396,521 | $ 408,308 | $ 393,501 | |||
[1] | Operating revenue amounts in the “Eliminations” row represent total intersegment revenues associated with sales from the regulated utility segment to the retail energy-marketing segment. Midstream Energy Services’ cost of energy related sales is netted with its gross revenues. | |||||
[2] | As of August 2016, Commercial energy systems' operating revenues include revenues from non-controlling interest. Commercial energy systems' EBIT is adjusted for the effects of non-controlling interest. | |||||
[3] | Intersegment eliminations include any mark-to market valuations associated with trading activities between WGL Midstream and WGL Energy Services, intercompany loans and a timing difference between Commercial Energy Systems’ recognition of revenue for the sale of Renewable Energy Credits (RECs) to Retail Energy-Marketing and Retail Energy-Marketing’s recognition of the associated expense. Retail Energy-Marketing has recorded a portion of the REC’s purchased as inventory to be used in future periods at which time they will be expensed. |
Operating Segment Reporting (_2
Operating Segment Reporting (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting [Abstract] | |||
Total consolidated EBIT | $ 59,344 | $ 379,125 | $ 319,298 |
Interest Expense | 62,133 | 74,026 | 52,310 |
Income tax expense | (53,452) | 111,159 | 98,074 |
Dividends on Washington Gas Light Company preferred stock | 1,320 | 1,320 | 1,320 |
Net income (loss) applicable to common stock | $ 49,343 | $ 192,620 | $ 167,594 |
Other Investments - Narratives
Other Investments - Narratives (Details) $ in Thousands, dekatherms in Millions | 12 Months Ended | ||||||
Sep. 30, 2018USD ($)Bcfe | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Aug. 31, 2018USD ($)dekatherms | Oct. 24, 2016 | Mar. 31, 2015dekatherms | Sep. 30, 2014USD ($)miledekatherms | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||||||
Investments in unconsolidated affiliates | $ 769,998 | $ 394,201 | |||||
Capitalized interest | 11,100 | 2,900 | $ 2,100 | ||||
Operation and Maintenance Expenses reversal | (665,115) | (429,890) | $ (401,776) | ||||
Constitution | |||||||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||||||
Impairment | 34,000 | ||||||
WGL Midstream | Meade | |||||||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||||||
Pipeline length in miles | mile | 185 | ||||||
Transportation and delivery | dekatherms | 1.7 | ||||||
Estimated Investment in Meade | $ 450,000 | ||||||
Equity Method Investment Ownership Percentage | 55.00% | ||||||
Investments in unconsolidated affiliates | 447,000 | 146,700 | |||||
Capitalized interest | 12,500 | ||||||
WGL Midstream | Meade (Leidy South) | |||||||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||||||
Transportation and delivery | dekatherms | 0.6 | ||||||
Estimated Investment in Meade | $ 50,000 | ||||||
WGL Midstream | Mountain Valley Pipeline | |||||||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||||||
Transportation and delivery | dekatherms | 2 | ||||||
Equity Method Investment Ownership Percentage | 3.00% | 7.00% | |||||
Investments in unconsolidated affiliates | 182,100 | 63,000 | |||||
Estimated Investment in Mountain Valley Pipeline | $ 352,000 | ||||||
WGL Midstream | Mountain Valley Pipeline | Maximum | |||||||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||||||
Equity Method Investment Ownership Percentage | 10.00% | ||||||
WGL Midstream | Mountain Valley Pipeline - Southgate Project | |||||||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||||||
Equity Method Investment Ownership Percentage | 5.00% | ||||||
Estimated Investment in Mountain Valley Pipeline | $ 17,000 | ||||||
WGL Midstream | Stonewall | |||||||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||||||
Equity Method Investment Ownership Percentage | 30.00% | ||||||
Investments in unconsolidated affiliates | $ 137,400 | 136,700 | |||||
Pipeline gathering capacity | Bcfe | 1,400,000,000 | ||||||
Equity Method Investment Difference Between Carrying Amount and Underlying Equity | $ 10,000 | ||||||
WGL Midstream | Constitution | |||||||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||||||
Equity Method Investment Ownership Percentage | 10.00% | ||||||
Investments in unconsolidated affiliates | $ 3,800 | $ 38,100 | |||||
Impairment | 34,000 | ||||||
Operation and Maintenance Expenses reversal | 3,000 | ||||||
WGSW | SFGF | |||||||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||||||
Contributions to tax equity partnership | 16,800 | ||||||
WGSW | SFRC | |||||||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||||||
Contributions to tax equity partnership | 29,000 | ||||||
WGSW | SFGF II | |||||||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||||||
Contributions to tax equity partnership | 47,400 | ||||||
WGSW | ASD | |||||||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||||||
Contributions to tax equity partnership | 72,600 | ||||||
WGSW | SFEE | |||||||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||||||
Contributions to tax equity partnership | $ 6,500 |
Other Investments-Balance Sheet
Other Investments-Balance Sheet Location Table (Details) - USD ($) | Jul. 10, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Assets | |||||
Current assets | $ 981,808,000 | $ 985,889,000 | |||
Property, plant and equipment | 4,885,429,000 | 4,630,051,000 | |||
Total Assets | 7,248,087,000 | 6,626,009,000 | $ 6,049,450,000 | ||
Investments in unconsolidated affiliates | 769,998,000 | 394,201,000 | |||
Liabilities | |||||
Current liabilities | 1,558,184,000 | 1,488,988,000 | |||
Equity Method Investment, Summarized Financial Information [Abstract] | |||||
Equity Method Investment, Summarized Financial Information, Current Assets | 1,298,488,000 | 236,622,000 | |||
Equity Method Investment, Summarized Financial Information, Noncurrent Assets | 3,902,251,000 | 1,646,752,000 | |||
Equity Method Investment, Summarized Financial Information, Assets | 5,200,739,000 | 1,883,374,000 | |||
Equity Method Investment, Summarized Financial Information, Current Liabilities | 730,720,000 | 63,068,000 | |||
Equity Method Investment, Summarized Financial Information, Noncurrent Liabilities | 6,445,000 | 166,000 | |||
Equity Method Investment, Summarized Financial Information, Liabilities | 737,165,000 | 63,234,000 | |||
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract] | |||||
Equity Method Investment, Summarized Financial Information, Revenue | 91,778,000 | 85,999,000 | 64,412,000 | ||
Equity Method Investment, Summarized Financial Information, Operating Income | 64,160,000 | 47,580,000 | 26,580,000 | ||
Equity Method Investment, Summarized Financial Information, Net Income | 157,760,000 | 64,685,000 | $ 33,161,000 | ||
Non-consolidated VIE's | Pipelines | |||||
Assets | |||||
Investments in unconsolidated affiliates | [1] | 447,000,000 | 146,700,000 | ||
VIE's | |||||
Assets | |||||
Current assets | 12,500,000 | 4,400,000 | |||
Property, plant and equipment | 248,800,000 | 121,700,000 | |||
Total Assets | 261,300,000 | 126,100,000 | |||
Liabilities | |||||
Current liabilities | 900,000 | 200,000 | |||
Deferred credits | 1,700,000 | 800,000 | |||
Total liabilities | 2,600,000 | 1,000,000 | |||
Non VIE's | Solar Investments | |||||
Assets | |||||
Investments in unconsolidated affiliates | [2] | 9,600,000 | |||
Non VIE's | Pipelines | |||||
Assets | |||||
Investments in unconsolidated affiliates | [3] | 323,000,000 | 237,900,000 | ||
Total | |||||
Assets | |||||
Total Assets | 770,000,000 | 394,200,000 | |||
Investments in unconsolidated affiliates | 770,000,000 | 394,200,000 | |||
Total assets | Pipelines | |||||
Assets | |||||
Total Assets | [1] | 447,000,000 | 146,700,000 | ||
Total assets | Solar Investments | |||||
Assets | |||||
Total Assets | [2] | 9,600,000 | |||
Total assets | Pipelines | |||||
Assets | |||||
Total Assets | [3] | $ 323,000,000 | $ 237,900,000 | ||
SFEE | WGSW | |||||
Assets | |||||
Property, plant and equipment | $ 10,100,000 | ||||
Other Assets | 100,000 | ||||
Total Assets | 10,200,000 | ||||
Net Assets | 10,200,000 | ||||
Equity [Abstract] | |||||
Non-controlling interest | 600,000 | ||||
WGSW equity interest | $ 9,600,000 | ||||
[1] | Balance relates to equity method investment in Meade. | ||||
[2] | Balance relates to interest held in SFEE on September 30, 2017 | ||||
[3] | Balance relates to equity method investments in Constitution, Mountain Valley Pipeline and Stonewall System. |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |||
Related Party Transaction [Line Items] | |||||
Current liabilities-other | $ 48,307 | [1] | $ 52,664 | ||
Operation and maintenance | 665,115 | 429,890 | $ 401,776 | ||
AltaGas | Shared service costs | |||||
Related Party Transaction [Line Items] | |||||
Current liabilities-other | 5,100 | ||||
Operation and maintenance | 5,100 | ||||
Washington Gas Light Company | |||||
Related Party Transaction [Line Items] | |||||
Current liabilities-other | 7,627 | 7,473 | |||
Operation and maintenance | 532,896 | 336,676 | 325,726 | ||
Receivables from Associated Companies | 2,227 | 32,362 | |||
Payables to Associated Companies | 21,548 | 94,844 | |||
Washington Gas Light Company | Shared service costs | |||||
Related Party Transaction [Line Items] | |||||
Operation and maintenance | 4,000 | ||||
Receivables from Associated Companies | 1,100 | ||||
Washington Gas Light Company | Other associated companies | |||||
Related Party Transaction [Line Items] | |||||
Receivables from Associated Companies | [2] | 1,100 | 32,400 | ||
Payables to Associated Companies | [2] | 16,400 | 94,800 | ||
WGL Energy Services | |||||
Related Party Transaction [Line Items] | |||||
Receivables from Associated Companies | 1,500 | 1,400 | |||
Gas balancing service charge | 18,500 | 23,600 | $ 26,800 | ||
WGL Energy Services | Washington Gas Light Company | |||||
Related Party Transaction [Line Items] | |||||
Related Party Purchased Receivables | $ 2,800 | $ 3,200 | |||
[1] | Includes $5.1 million account payable to associated companies as of September 30, 2018. Refer to Note 17-Related Party Transactions for more information. | ||||
[2] | The receivable and payable do not include the transactions related to shared service cost billed from AltaGas. |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | ||
AOCI, Net of Tax [Roll Forward] | ||||||
Beginning Balance | $ (5,997) | $ (38,539) | ||||
Qualified cash flow hedging instruments | (6,341) | [1] | 49,610 | [1] | $ (39,289) | |
Change in prior service cost | $ (26,100) | (675) | [2] | (767) | [2] | (891) |
Amortization of actuarial gain (loss) | 6,324 | [2] | 6,232 | [2] | (936) | |
Current-period other comprehensive income (loss) | (692) | 55,075 | (41,116) | |||
Income tax expense related to other comprehensive income (loss) | 1,523 | 22,533 | (16,813) | |||
Ending Balance | (8,212) | (5,997) | (38,539) | |||
Washington Gas Light Company | ||||||
AOCI, Net of Tax [Roll Forward] | ||||||
Beginning Balance | (4,522) | (7,830) | ||||
Change in prior service cost | (675) | [3] | (767) | [3] | (891) | |
Amortization of actuarial gain (loss) | 6,324 | [3] | 6,232 | [3] | (936) | |
Current-period other comprehensive income (loss) | 5,649 | 5,465 | ||||
Income tax expense related to other comprehensive income (loss) | 2,957 | 2,157 | (709) | |||
Ending Balance | $ (1,830) | $ (4,522) | $ (7,830) | |||
[1] | Cash flow hedging instruments represent interest rate swap agreements related to debt issuances. Refer to Note 13—Derivative and Weather-related Instruments for further discussion of the interest rate swap agreements. | |||||
[2] | These accumulated other comprehensive income (loss) components are included in the computation of net periodic benefit cost. Refer to Note 9—Pension and other post-retirement benefit plans for additional details. | |||||
[3] | These accumulated other comprehensive income (loss) components are included in the computation of net periodic benefit cost. Refer to Note 9—Pension and other post-retirement benefit plans for additional details. |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Increase (Decrease) in Operating Capital [Abstract] | ||||
Changes in operating assets and liabilities | $ 68,300 | $ (178,937) | $ (239,976) | |
Supplemental Cash Flow Elements [Abstract] | ||||
Elimination of equity method investment | (769,998) | (394,201) | (303,491) | |
Elimination of unamortized investment tax credits | 7,398 | 7,504 | 6,132 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | 57,969 | 8,524 | ||
Current assets-other | 38,363 | 26,556 | ||
Deferred charges and other assets-other | 59,201 | 11,671 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 122,951 | 8,524 | 5,573 | $ 6,733 |
WGL | ||||
Increase (Decrease) in Operating Capital [Abstract] | ||||
Accounts receivable and unbilled revenues—net | (41,294) | (108,236) | (105,720) | |
Gas costs and other regulatory assets/liabilities—net | 27,994 | 3,430 | (31,075) | |
Storage gas | 55,714 | (36,852) | 4,311 | |
Prepaid taxes | (1,197) | 1,848 | (76,779) | |
Accounts payable and other accrued liabilities | 35,000 | 51,307 | 31,792 | |
Customer deposits and advance payments | 18,264 | (20,543) | (2,513) | |
Accrued taxes | 13,494 | 1,985 | 1,805 | |
Other current assets | 1,678 | (30,123) | (24,502) | |
Other current liabilities | (3,448) | 10,673 | (5,532) | |
Deferred gas costs—net | (8,306) | 2,467 | (5,104) | |
Deferred assets—other | (8,821) | (18,538) | (22,312) | |
Deferred liabilities—other | (7,608) | (29,407) | 2,076 | |
Pension and other post-retirement benefits | (14,458) | (9,950) | (10,244) | |
Other—net | 1,288 | 3,002 | 3,821 | |
Changes in operating assets and liabilities | 68,300 | (178,937) | (239,976) | |
Supplemental Cash Flow Elements [Abstract] | ||||
Income taxes paid (refunded)—net | (1,143) | (10,002) | (10,723) | |
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | 88,115 | 66,023 | 51,838 | |
Extinguishment of project debt financing | (28,312) | (27,927) | ||
Capital expenditure accruals included in accounts payable and other accrued liabilities | 91,927 | 54,212 | 84,132 | |
Dividends paid in common stock | 1,362 | 4,011 | ||
Stock based compensation | 12,389 | 6,564 | 6,742 | |
Transfer of investments to fixed assets (excluding ASD) | 10,054 | 30,114 | ||
Transfer of notes receivables to investments | 10,031 | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | 57,969 | |||
Current assets-other | 20,200 | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 122,951 | |||
Washington Gas Light Company | ||||
Increase (Decrease) in Operating Capital [Abstract] | ||||
Accounts receivable and unbilled revenues—net | 16,578 | (125,758) | (78,304) | |
Gas costs and other regulatory assets/liabilities—net | 27,994 | 3,430 | (31,075) | |
Storage gas | (8,626) | (10,280) | 12,016 | |
Prepaid taxes | 5,618 | (6,524) | 13,539 | |
Accounts payable and other accrued liabilities | (54,918) | 46,995 | 31,408 | |
Customer deposits and advance payments | 19,464 | (16,742) | (7,514) | |
Accrued taxes | 14,619 | (4,831) | 5,980 | |
Other current assets | (14,605) | (4,123) | 3,912 | |
Other current liabilities | 154 | 280 | (1,318) | |
Deferred gas costs—net | (8,306) | 2,467 | (5,104) | |
Deferred assets—other | (5,895) | (15,088) | (22,057) | |
Deferred liabilities—other | (21,499) | (4,667) | (56,865) | |
Pension and other post-retirement benefits | (14,521) | (9,806) | (10,251) | |
Other—net | 893 | 3,409 | 2,107 | |
Changes in operating assets and liabilities | (43,050) | (141,238) | (143,526) | |
Supplemental Cash Flow Elements [Abstract] | ||||
Income taxes paid (refunded)—net | (2,983) | (19,004) | ||
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | 57,036 | 50,539 | 40,972 | |
Extinguishment of project debt financing | (28,312) | (27,927) | ||
Capital expenditure accruals included in accounts payable and other accrued liabilities | 53,367 | 37,049 | 43,687 | |
Elimination of unamortized investment tax credits | 702 | 751 | 795 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | 1 | 1 | ||
Current assets-other | 20,347 | 102 | ||
Deferred charges and other assets-other | 49,331 | 3,561 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 64,983 | 1 | $ 1 | $ 1 |
Washington Gas Light Company | WGL | ||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | ||||
Current assets-other | 20,200 | |||
Effects of ASD consolidation | WGL | ||||
Supplemental Cash Flow Elements [Abstract] | ||||
Elimination of equity method investment | (66,719) | |||
Consolidation of property, plant and equipment | 48,248 | |||
Elimination of unamortized investment tax credits | 19,322 | |||
Accounts receivable and other | 956 | |||
Gain on consolidation | $ (1,807) | |||
Rabbi Trusts | WGL | ||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | ||||
Current assets-other | 20,207 | |||
Deferred charges and other assets-other | 44,775 | |||
Rabbi Trusts | Washington Gas Light Company | ||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | ||||
Current assets-other | 20,207 | |||
Deferred charges and other assets-other | $ 44,775 |
Merger with AltaGas Ltd. (Detai
Merger with AltaGas Ltd. (Details) - USD ($) $ / shares in Units, $ in Thousands | Sep. 30, 2028 | Sep. 30, 2023 | Sep. 30, 2021 | Jul. 06, 2018 | Jan. 25, 2017 | Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Business Acquisition [Line Items] | ||||||||||
Business Acquisition, Date of Acquisition Agreement | Jan. 25, 2017 | |||||||||
Business Acquisition, Effective Date of Acquisition | Jul. 6, 2018 | |||||||||
Other income (expense) —net | $ (15,043) | $ 1,819 | $ 4,646 | |||||||
Operation and Maintenance Expenses | 665,115 | 429,890 | 401,776 | |||||||
Merger costs | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Operation and Maintenance Expenses | $ 234,000 | |||||||||
AltaGas Ltd. | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business Acquisition, Date of Acquisition Agreement | Jan. 25, 2017 | |||||||||
Business Acquisition, Effective Date of Acquisition | Jul. 6, 2018 | |||||||||
Business Acquisition, Share Price | $ 88.25 | |||||||||
WGL | Customer bill credits | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Operation and Maintenance Expenses | 56,800 | |||||||||
Merger commitment paid in fiscal year 2018 | 56,800 | 56,800 | ||||||||
WGL | Gas expansion fund contributions | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Operation and Maintenance Expenses | 34,200 | |||||||||
Merger commitment expected to be paid in 2019 | 34,200 | 34,200 | ||||||||
WGL | Energy customer or education programs | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Operation and Maintenance Expenses | 22,800 | |||||||||
Merger commitment paid in fiscal year 2018 | 22,800 | 22,800 | ||||||||
WGL | Charitable contributions | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Operation and Maintenance Expenses | 13,500 | |||||||||
Merger commitment paid in fiscal year 2018 | 400 | 400 | ||||||||
Merger commitment expected to be paid in 2019 | 1,500 | 1,500 | ||||||||
Merger commitment expected to be paid in 2020 | 1,500 | 1,500 | ||||||||
Merger commitment expected to be paid in 2021 | 1,500 | 1,500 | ||||||||
Merger commitment expected to be paid in 2022 | 1,500 | 1,500 | ||||||||
Merger commitment expected to be paid in 2023 | 1,500 | 1,500 | ||||||||
Merger commitment expected to be paid in 2024-2027 | 5,600 | 5,600 | ||||||||
WGL | Work place development initiatives | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Operation and Maintenance Expenses | 7,400 | |||||||||
Merger commitment expected to be paid in 2019 | 3,700 | 3,700 | ||||||||
Merger commitment expected to be paid in 2020 | 3,700 | 3,700 | ||||||||
WGL | Low-income weatherization and energy efficiency initiatives | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Operation and Maintenance Expenses | 4,200 | |||||||||
Merger commitment expected to be paid in 2019 | 2,100 | 2,100 | ||||||||
Merger commitment expected to be paid in 2020 | 2,100 | 2,100 | ||||||||
WGL | Public safety programs | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Operation and Maintenance Expenses | 700 | |||||||||
Merger commitment expected to be paid in 2019 | 700 | 700 | ||||||||
WGL | Total | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Operation and Maintenance Expenses | 139,600 | |||||||||
Merger commitment paid in fiscal year 2018 | 80,000 | 80,000 | ||||||||
Merger commitment expected to be paid in 2019 | 42,200 | 42,200 | ||||||||
Merger commitment expected to be paid in 2020 | 7,300 | 7,300 | ||||||||
Merger commitment expected to be paid in 2021 | 1,500 | 1,500 | ||||||||
Merger commitment expected to be paid in 2022 | 1,500 | 1,500 | ||||||||
Merger commitment expected to be paid in 2023 | 1,500 | 1,500 | ||||||||
Merger commitment expected to be paid in 2024-2027 | 5,600 | 5,600 | ||||||||
WGL | Merger costs | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Other income (expense) —net | 13,500 | |||||||||
Operation and Maintenance Expenses | 223,200 | |||||||||
WGL | Merger commitments | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Operation and Maintenance Expenses | [1] | 139,600 | ||||||||
WGL | Property plant and equipment impairment | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Operation and Maintenance Expenses | [2] | 38,000 | ||||||||
WGL | Finance and legal advisory costs | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Operation and Maintenance Expenses | 29,700 | |||||||||
WGL | Key employee retention payments | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Operation and Maintenance Expenses | 11,600 | |||||||||
WGL | Acceleration of stock-based compensation | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Operation and Maintenance Expenses | [3] | 8,400 | ||||||||
WGL | Severance costs | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Operation and Maintenance Expenses | [4] | 6,700 | ||||||||
WGL | Other | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Operation and Maintenance Expenses | 2,700 | |||||||||
WGL | Total | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Operation and Maintenance Expenses | 236,700 | |||||||||
Washington Gas Light Company | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Other income (expense) —net | (18,876) | (4,473) | (2,143) | |||||||
Operation and Maintenance Expenses | 532,896 | $ 336,676 | $ 325,726 | |||||||
Washington Gas Light Company | Rabbi trusts contribution | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Merger commitment | $ 66,700 | 66,700 | ||||||||
Washington Gas Light Company | Merger costs | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Other income (expense) —net | 13,500 | |||||||||
Operation and Maintenance Expenses | $ 186,700 | |||||||||
Washington Gas Light Company | Scenario, Forecast | Future hiring | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Operation and Maintenance Expenses | $ 2,400 | |||||||||
Washington Gas Light Company | Scenario, Forecast | Future capital plan investments | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Operation and Maintenance Expenses | $ 70,000 | |||||||||
Washington Gas Light Company | Scenario, Forecast | Future leak mitigation | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Operation and Maintenance Expenses | $ 8,000 | |||||||||
Wrangler I | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Post-merger common stock outstanding (in shares) | 100 | |||||||||
Wrangler I | AltaGas Ltd. | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Post-merger common stock outstanding (in shares) | 100 | |||||||||
[1] | See the Merger Commitments table below for details of merger related commitments. | |||||||||
[2] | Net property, plant and equipment impairment recorded in connection with an agreement not to seek recovery of certain costs incurred under the Formal Case 1027 mechanical coupling program. | |||||||||
[3] | See Note 10-Stock-Based Compensation for further discussion of the acceleration of incentive compensation. | |||||||||
[4] | Severance costs are related to the retirement of senior executives following the merger. |
Schedule II (Details)
Schedule II (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Schedule II - Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Valuation Allowances and Reserves, Beginning Balance | $ 32,025 | $ 27,339 | $ 26,224 | |
Valuation Allowances and Reserves, Charged to Cost and Expense | [1] | 22,730 | 17,205 | 13,051 |
Valuation Allowances and Reserves, Charged to Other Accounts | [2] | 1,431 | 1,841 | 3,856 |
Valuation Allowances and Reserves, Deduction | [3] | 16,100 | 14,360 | 15,792 |
Valuation Allowances and Reserves, Ending Balance | 40,086 | 32,025 | 27,339 | |
Washington Gas Light Company | ||||
Schedule II - Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Valuation Allowances and Reserves, Beginning Balance | 23,741 | 20,220 | 19,254 | |
Valuation Allowances and Reserves, Charged to Cost and Expense | [1] | 19,946 | 14,320 | 10,946 |
Valuation Allowances and Reserves, Charged to Other Accounts | [2] | 1,409 | 1,821 | 3,806 |
Valuation Allowances and Reserves, Deduction | [3] | 15,474 | 12,620 | 13,786 |
Valuation Allowances and Reserves, Ending Balance | $ 29,622 | $ 23,741 | $ 20,220 | |
[1] | Represent the amount of bad debt expense recorded to the income statement. | |||
[2] | Recoveries on receivables previously written off as uncollectible and unclaimed customer deposits, overpayments, etc. non refundable. | |||
[3] | Includes deductions for accounts charged-off. |
Quarterly Financial Data - Tabl
Quarterly Financial Data - Table (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Operating revenues | [1] | $ 2,341,765 | $ 2,354,724 | $ 2,349,559 | ||||||||
Operating income (loss) | 50,661 | 341,013 | 300,296 | |||||||||
NET INCOME (LOSS) | 21,146 | 177,863 | 168,364 | |||||||||
Net income (loss) applicable to common stock | 49,343 | 192,620 | 167,594 | |||||||||
Washington Gas Light Company | ||||||||||||
Operating revenues | $ 139,041 | $ 199,512 | $ 523,040 | $ 377,470 | $ 154,775 | $ 203,186 | $ 475,021 | $ 333,986 | 1,248,063 | 1,166,968 | 1,070,904 | |
Operating income (loss) | (222,641) | (3,828) | 151,799 | 99,545 | (12,018) | 11,464 | 165,858 | 103,008 | 24,875 | 268,312 | 228,367 | |
NET INCOME (LOSS) | (181,153) | (11,499) | 108,084 | 57,926 | (15,608) | (1,671) | 93,610 | 55,461 | (26,642) | 131,792 | 113,114 | |
Net income (loss) applicable to common stock | (181,483) | (11,829) | 107,754 | 57,596 | (15,938) | (2,001) | 93,280 | 55,131 | $ (27,962) | $ 130,472 | $ 111,794 | |
WGL | ||||||||||||
Operating revenues | 379,409 | 423,465 | 886,451 | 652,440 | 429,123 | 474,364 | 841,750 | 609,487 | ||||
Operating income (loss) | (257,011) | (3,068) | 194,173 | 116,567 | 15,848 | 22,855 | 197,597 | 104,713 | ||||
NET INCOME (LOSS) | (187,627) | (55,327) | 131,508 | 132,592 | 105 | 4,036 | 117,955 | 55,767 | ||||
Net income (loss) applicable to common stock | $ (175,241) | $ (49,006) | $ 135,550 | $ 138,040 | $ 3,319 | $ 8,265 | $ 123,064 | $ 57,972 | ||||
[1] | Operating revenue amounts in the “Eliminations” row represent total intersegment revenues associated with sales from the regulated utility segment to the retail energy-marketing segment. Midstream Energy Services’ cost of energy related sales is netted with its gross revenues. |
Quarterly Financial Information
Quarterly Financial Information - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Operation and maintenance | $ 665,115 | $ 429,890 | $ 401,776 | ||
Merger costs | |||||
Operation and maintenance | $ 234,000 | ||||
Washington Gas Light Company | |||||
Operation and maintenance | 532,896 | $ 336,676 | $ 325,726 | ||
Washington Gas Light Company | Merger costs | |||||
Operation and maintenance | 186,700 | ||||
WGL | Merger costs | |||||
Operation and maintenance | $ 223,200 | ||||
WGL | Constitution | |||||
Impairment | $ 34,000 |
Uncategorized Items - wgl-20180
Label | Element | Value |
Subsidiaries [Member] | Common Stock [Member] | ||
Entity Common Stock, Shares Outstanding | dei_EntityCommonStockSharesOutstanding | 46,479,536 |