Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Jan. 31, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 0-49807 | ||
Entity Registrant Name | WASHINGTON GAS LIGHT CO | ||
Entity Tax Identification Number | 53-0162882 | ||
Entity Address, Address Line One | 1000 Maine Ave., S.W. | ||
Entity Address, City or Town | Washington | ||
Entity Address, Postal Zip Code | 20024 | ||
City Area Code | 703 | ||
Local Phone Number | 750-4440 | ||
Title of 12(g) Security | Common stock, $1.00 par value | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 0 | ||
Entity Common Stock, Shares Outstanding | 46,479,536 | ||
Entity Central Index Key | 0000104819 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Incorporation, State or Country Code | VA | ||
Entity Address, State or Province | DC | ||
ICFR Auditor Attestation Flag | false |
Balance Sheet
Balance Sheet - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment | |||
Property, plant and equipment, at original cost | $ 6,363,392 | $ 5,962,866 | |
Accumulated depreciation and amortization | (1,668,491) | (1,579,718) | |
Net property, plant and equipment | 4,694,901 | 4,383,148 | |
Current Assets | |||
Cash and cash equivalents | 1 | 17,069 | |
Receivables (net of allowance for doubtful accounts of $27,283 and $18,708, respectively) | 339,759 | 400,891 | |
Gas costs and other regulatory assets | 31,376 | 9,894 | |
Materials and supplies—principally at average cost | 20,389 | 20,184 | |
Storage gas | 70,582 | 87,977 | |
Prepaid taxes | 23,547 | 34,576 | |
Other prepayments | 30,980 | 33,867 | |
Receivables from associated companies | 128,254 | 12,421 | |
Derivatives | 5,049 | 6,553 | |
Other | 6,836 | 19,619 | |
Total current assets | 656,773 | 643,051 | |
Regulatory assets | |||
Gas costs | 109,034 | 98,717 | |
Pension and other post-retirement benefits | 3,880 | 44,078 | |
Other | 99,793 | 84,886 | |
Prepaid post-retirement benefits | 433,319 | 366,508 | |
Operating lease right of use asset | 38,097 | 40,004 | |
Derivatives | 11,263 | 10,370 | |
Other | 22,637 | 30,620 | |
Total deferred charges and other assets | 718,023 | 675,183 | |
Total Assets | 6,069,697 | 5,701,382 | |
Capitalization | |||
Common shareholder’s equity | [1] | 1,855,925 | 1,578,592 |
Long-term debt | 1,547,202 | 1,430,949 | |
Total capitalization | 3,403,127 | 3,009,541 | |
Current Liabilities | |||
Notes payable | 184,953 | 299,483 | |
Accounts payable and other accrued liabilities | 292,454 | 267,408 | |
Customer deposits and advance payments | 38,743 | 40,052 | |
Gas costs and other regulatory liabilities | 72,197 | 105,399 | |
Accrued taxes | 26,637 | 23,781 | |
Payables to associated companies | 29,526 | 57,923 | |
Operating lease liability | 5,734 | 5,850 | |
Derivatives | 7,053 | 4,069 | |
Other | 6,543 | 30,032 | |
Total current liabilities | 663,840 | 833,997 | |
Deferred Credits | |||
Deferred income taxes | 656,876 | 464,717 | |
Accrued pensions and benefits | 65,276 | 115,837 | |
Asset retirement obligations | 212,161 | 206,820 | |
Regulatory liabilities | |||
Accrued asset removal costs | 239,259 | 254,429 | |
Pension and other post-retirement benefits | 262,411 | 195,670 | |
Excess deferred taxes and other | 376,975 | 404,700 | |
Operating lease liability | 50,894 | 53,642 | |
Derivatives | 88,559 | 97,695 | |
Other | 50,319 | 64,334 | |
Total deferred credits | 2,002,730 | 1,857,844 | |
Commitments and Contingencies (Note 13) | |||
Total Capitalization and Liabilities | $ 6,069,697 | $ 5,701,382 | |
[1] | In the third quarter of 2020, Washington Gas made a voluntary change in accounting principle for calculating the market-related value of assets used in the determination of net periodic pension and other post-retirement benefit plan costs. We retrospectively applied this change in accounting principle to all applicable prior period financial information presented herein as required. Refer to Note 1 — Accounting Policies for further discussion. |
Balance Sheet (Parenthetical)
Balance Sheet (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for credit losses | $ 27,283 | $ 18,708 |
Statement of Operations
Statement of Operations - USD ($) $ in Thousands | Dec. 20, 2019 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | ||||
Income Statement [Abstract] | |||||||||||||||||||
OPERATING REVENUES | $ 378,031 | $ 143,383 | $ 211,166 | $ 501,735 | $ 416,209 | $ 122,305 | $ 198,484 | $ 593,653 | $ 402,101 | $ 377,470 | $ 1,234,315 | $ 1,330,651 | $ 1,272,694 | $ 1,248,063 | |||||
OPERATING EXPENSES | |||||||||||||||||||
Utility cost of gas | 156,641 | 124,745 | 328,244 | 461,574 | 438,939 | 407,043 | |||||||||||||
Operation and maintenance | 102,728 | 82,372 | 399,498 | 404,961 | 564,536 | 544,180 | |||||||||||||
Depreciation and amortization | 34,948 | 33,646 | 145,585 | 142,565 | 136,373 | 135,071 | |||||||||||||
General taxes and other assessments | 38,552 | 39,983 | 152,654 | 149,618 | 146,747 | 148,178 | |||||||||||||
Total Operating Expenses | 332,869 | 280,746 | 1,025,981 | 1,158,718 | 1,286,595 | 1,234,472 | |||||||||||||
OPERATING INCOME | 83,727 | (35,928) | (10,632) | 171,167 | 102,541 | (73,050) | (10,138) | 152,580 | 69,232 | 96,724 | 208,334 | 171,933 | (13,901) | 13,591 | |||||
Other income (expense) — net | 2,045 | 1,870 | 21,737 | 5,822 | (4,052) | (4,226) | |||||||||||||
Interest expense | 15,706 | 14,973 | 65,352 | 62,567 | 59,237 | 58,504 | |||||||||||||
INCOME (LOSS) BEFORE INCOME TAXES | 55,571 | 83,621 | 164,719 | 115,188 | (77,190) | (49,139) | |||||||||||||
INCOME TAX EXPENSE (BENEFIT) | 7,471 | 25,072 | 32,844 | 18,083 | (42,591) | (24,989) | |||||||||||||
NET INCOME (LOSS) | 55,338 | (36,622) | (14,600) | 127,759 | 72,530 | (66,476) | (21,268) | 112,319 | 48,100 | [1] | 58,549 | 131,875 | [1] | 97,105 | [1] | (34,599) | (24,150) | [1] | |
Loss on preferred stock extinguishment | $ 600 | 0 | 0 | 0 | 556 | 0 | 0 | ||||||||||||
Dividends on preferred stock | 330 | 330 | 0 | 1,169 | 1,320 | 1,320 | |||||||||||||
NET INCOME (LOSS) APPLICABLE TO COMMON STOCK | $ 55,338 | $ (36,622) | $ (14,600) | $ 127,759 | $ 71,465 | $ (66,476) | $ (21,598) | $ 111,989 | $ 47,770 | $ 58,219 | $ 131,875 | $ 95,380 | $ (35,919) | $ (25,470) | |||||
[1] | In the third quarter of 2020, Washington Gas made a voluntary change in accounting principle for calculating the market-related value of assets used in the determination of net periodic pension and other post-retirement benefit plan costs. We retrospectively applied this change in accounting principle to all applicable prior period financial information presented herein as required. Refer to Note 1 — Accounting Policies for further discussion. |
Statement of Comprehensive Inco
Statement of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2018 | |||||
Statement of Comprehensive Income [Abstract] | ||||||||
NET INCOME (LOSS) | [1] | $ 48,100 | $ 131,875 | $ 97,105 | $ (24,150) | |||
Pension and other post-retirement benefit plans | ||||||||
Change in prior service cost | (226) | (1,493) | (649) | (675) | ||||
Change in actuarial net gain (loss) | (6,150) | (2,607) | 16,459 | 6,107 | ||||
Total pension and other post-retirement benefit plans | (6,376) | (4,100) | 15,810 | 5,432 | ||||
INCOME TAX EXPENSE (BENEFIT) RELATED TO OTHER COMPREHENSIVE INCOME (LOSS) | (1,650) | (1,101) | 4,128 | 2,901 | ||||
OTHER COMPREHENSIVE INCOME (LOSS) | (4,726) | [1] | (2,999) | [1] | 11,682 | [1] | 2,531 | |
COMPREHENSIVE INCOME (LOSS) | $ 43,374 | $ 128,876 | $ 108,787 | $ (21,619) | ||||
[1] | In the third quarter of 2020, Washington Gas made a voluntary change in accounting principle for calculating the market-related value of assets used in the determination of net periodic pension and other post-retirement benefit plan costs. We retrospectively applied this change in accounting principle to all applicable prior period financial information presented herein as required. Refer to Note 1 — Accounting Policies for further discussion. |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2018 | ||
OPERATING ACTIVITIES | |||||
Net income (loss) | [1] | $ 48,100 | $ 131,875 | $ 97,105 | $ (24,150) |
ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES | |||||
Depreciation and amortization | 34,948 | 145,585 | 142,565 | 135,071 | |
Amortization of: | |||||
Other regulatory assets and liabilities — net | 1,859 | 9,761 | 8,491 | 6,917 | |
Debt related costs | 382 | 1,405 | 1,501 | 1,580 | |
Deferred income taxes — net | 7,636 | 41,525 | 18,741 | (25,561) | |
Accrued/deferred pension and other post-retirement benefit cost (benefit) | 1,119 | (8,400) | 2,190 | 7,761 | |
Compensation expense related to stock-based awards | 1,353 | 2,826 | 3,626 | 19,067 | |
Provision for doubtful accounts | 5,940 | 15,958 | 17,266 | 20,224 | |
Impairment loss | 2,453 | 0 | 2,042 | 37,969 | |
Unrealized (gain) loss on derivative contracts | 4,200 | (3,579) | (5,429) | (10,379) | |
Amortization of investment tax credits | (165) | (551) | (658) | (702) | |
Other non-cash charges (credits) — net | (453) | 283 | 2,436 | (2,450) | |
Changes in operating assets and liabilities (Note 18) | (201,840) | (111,930) | (86,547) | (43,050) | |
Net Cash Provided by (Used In) Operating Activities | (94,468) | 224,758 | 203,329 | 122,297 | |
FINANCING ACTIVITIES | |||||
Capital contributions from parent | 100,000 | 225,000 | 0 | 402,728 | |
Long-term debt issued | 0 | 116,606 | 298,482 | 0 | |
Repayment of long-term debt and finance lease | (50,000) | (10) | (50,000) | 0 | |
Debt issuance costs | 0 | (1,252) | (3,130) | (366) | |
Long-term commercial paper issued | 0 | 0 | 100,000 | 0 | |
Notes payable issued (retired) — net | 200,999 | 3,483 | |||
Notes payable issued (retired) — net | (114,530) | (27,998) | |||
Project financing | 0 | 0 | 0 | 53,018 | |
Dividends on common stock and preferred stock | (24,078) | (100,000) | (100,736) | (88,908) | |
Payment for preferred stock extinguishment | 0 | 0 | (28,729) | 0 | |
Other financing activities — net | 0 | 0 | 0 | (6,197) | |
Net Cash Provided by Financing Activities | 226,921 | 125,814 | 219,370 | 332,277 | |
INVESTING ACTIVITIES | |||||
Capital expenditures | (126,013) | (389,758) | (432,974) | (392,830) | |
Insurance proceeds related to investing properties | 0 | 0 | 0 | 3,238 | |
Net Cash Used in Investing Activities | (126,013) | (389,758) | (432,974) | (389,592) | |
INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 6,440 | (39,186) | (10,275) | 64,982 | |
Cash, Cash Equivalents, and Restricted Cash at Beginning of the Year | 64,983 | 61,148 | 71,423 | 1 | |
Cash, Cash equivalents and Restricted Cash at End of the Year | $ 71,423 | $ 21,962 | $ 61,148 | $ 64,983 | |
[1] | In the third quarter of 2020, Washington Gas made a voluntary change in accounting principle for calculating the market-related value of assets used in the determination of net periodic pension and other post-retirement benefit plan costs. We retrospectively applied this change in accounting principle to all applicable prior period financial information presented herein as required. Refer to Note 1 — Accounting Policies for further discussion. |
Consolidated Statements of Comm
Consolidated Statements of Common Shareholder's Equity - USD ($) $ in Thousands | Total | Cumulative effect of adoption | [1],[5] | Common Stock | Paid-In Capital | Retained Earnings | Retained EarningsCumulative effect of adoption | Accumulated Other Comprehensive Loss, Net of Taxes | Accumulated Other Comprehensive Loss, Net of TaxesCumulative effect of adoption | [1],[2] | |||||
Beginning Balance (in shares) at Sep. 30, 2017 | 46,479,536 | ||||||||||||||
Beginning Balance at Sep. 30, 2017 | $ 1,172,377 | [1] | $ 46,479 | $ 492,101 | $ 638,708 | [1] | $ 1,484 | [1],[2] | $ (4,911) | [1] | $ (1,484) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Net income (loss) | [1] | (24,150) | (24,150) | ||||||||||||
Other comprehensive income (Loss) | 2,531 | 4,015 | |||||||||||||
Other comprehensive income (Loss) | ASU 2018-02 | [1] | 4,015 | 4,015 | ||||||||||||
Stock-based compensation | [3] | (11,359) | [1] | (15,556) | 4,197 | [1] | |||||||||
Capital contribution from parent | 402,728 | [1] | 402,728 | ||||||||||||
Dividends Abstract | |||||||||||||||
Common Stock | [1] | (89,568) | (89,568) | ||||||||||||
Preferred Stock | [1] | (1,320) | (1,320) | ||||||||||||
Ending Balance (in shares) at Sep. 30, 2018 | 46,479,536 | ||||||||||||||
Ending Balance at Sep. 30, 2018 | 1,452,723 | [1] | $ 46,479 | 879,273 | 529,351 | [1] | (2,380) | [1] | |||||||
Ending Balance (ASU 2018-02) at Sep. 30, 2018 | 1,500 | ||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Net income (loss) | [1] | 48,100 | 48,100 | ||||||||||||
Other comprehensive income (Loss) | [1] | (4,726) | (4,726) | ||||||||||||
Capital contribution from parent | 100,000 | [1] | 100,000 | ||||||||||||
Dividends Abstract | |||||||||||||||
Common Stock | [1] | (24,237) | (24,237) | ||||||||||||
Preferred Stock | [1] | (330) | (330) | ||||||||||||
Ending Balance (in shares) at Dec. 31, 2018 | 46,479,536 | ||||||||||||||
Ending Balance at Dec. 31, 2018 | 1,571,530 | [1] | $ 46,479 | 979,273 | 552,884 | [1] | (7,106) | [1] | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Net income (loss) | [1] | 97,105 | 97,105 | ||||||||||||
Other comprehensive income (Loss) | [1] | 11,682 | 11,682 | ||||||||||||
Loss on preferred stock extinguishment | [1],[4] | (556) | (556) | ||||||||||||
Dividends Abstract | |||||||||||||||
Common Stock | [1] | (100,000) | (100,000) | ||||||||||||
Preferred Stock | [1],[4] | (1,169) | (1,169) | ||||||||||||
Ending Balance (in shares) at Dec. 31, 2019 | 46,479,536 | ||||||||||||||
Ending Balance at Dec. 31, 2019 | 1,578,592 | [1] | $ (1,543) | $ 46,479 | 979,273 | 548,264 | [1] | $ (1,543) | [1],[5] | 4,576 | [1] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Net income (loss) | 131,875 | [1] | 131,875 | ||||||||||||
Other comprehensive income (Loss) | [1] | (2,999) | (2,999) | ||||||||||||
Capital contribution from parent | 225,000 | [1] | 225,000 | ||||||||||||
Dividends Abstract | |||||||||||||||
Common Stock | [1] | (75,000) | (75,000) | ||||||||||||
Ending Balance (in shares) at Dec. 31, 2020 | 46,479,536 | ||||||||||||||
Ending Balance at Dec. 31, 2020 | $ 1,855,925 | [1] | $ 46,479 | $ 1,204,273 | $ 603,596 | [1] | $ 1,577 | [1] | |||||||
[1] | In the third quarter of 2020, Washington Gas made a voluntary change in accounting principle for calculating the market-related value of assets used in the determination of net periodic pension and other post-retirement benefit plan costs. We retrospectively applied this change in accounting principle to all applicable prior period financial information presented herein as required. Refer to Note 1 — Accounting Policies for further discussion. | ||||||||||||||
[2] | Amount related to the adoption of ASU 2018-02. Washington Gas reclassified a credit of $1.5 million from Accumulated other comprehensive income to Retained earnings at September 30, 2018. | ||||||||||||||
[3] | Stock-based compensation is based on the stock awards of WGL that are allocated to Washington Gas for its pro-rata share. We recorded $4.2 million accumulative adjustments to retained earnings for the fiscal year 2018 due to the adoption of Accounting Standards Update (ASU) 2016-09. We accelerated the vesting of stock-based awards upon the consummation of the Merger with AltaGas during the fourth quarter of fiscal year ended September 2018, which reduced the paid-in capital. See Note 11 — Stock-Based Compensation for a further discussion. | ||||||||||||||
[4] | On December 20, 2019, Washington Gas redeemed all outstanding shares of its preferred stock for the respective call price per share for a total amount of $28.7 million, plus all accrued and unpaid dividends. A loss of $0.6 million was recorded in "Loss on preferred stock extinguishment" on Washington Gas' statements of operations. Following the redemption, Washington Gas no longer pays quarterly preferred stock dividends. Since Washington Gas’ preferred shares had voting rights, as a result of this redemption, Washington Gas became an indirect wholly owned subsidiary of AltaGas | ||||||||||||||
[5] | Due to implementation of ASU 2016-13 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, see Note 2 — Credit Losses for further information. |
Consolidated Statements of Co_2
Consolidated Statements of Common Shareholder's Equity (Parenthetical) - USD ($) $ in Thousands | Dec. 20, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | |||
Accounting standards update | us-gaap:AccountingStandardsUpdate201613Member | us-gaap:AccountingStandardsUpdate201613Member | us-gaap:AccountingStandardsUpdate201802Member | ||||||||
Net increase in common shareholder's equity | [1] | $ 1,571,530 | $ 1,855,925 | $ 1,578,592 | $ 1,571,530 | $ 1,452,723 | $ 1,172,377 | ||||
Value of redemption | $ 28,700 | ||||||||||
Loss on preferred stock extinguishment | $ 600 | 0 | $ 0 | 0 | 556 | 0 | 0 | ||||
Retained Earnings | |||||||||||
Net increase in common shareholder's equity | [1] | $ 552,884 | $ 603,596 | 548,264 | $ 552,884 | 529,351 | 638,708 | ||||
Cumulative effect of adoption | |||||||||||
Net increase in common shareholder's equity | [1],[2] | (1,543) | |||||||||
Cumulative effect of adoption | Retained Earnings | |||||||||||
Net increase in common shareholder's equity | [1] | $ (1,543) | [2] | $ 1,484 | [3] | ||||||
Cumulative effect of adoption | ASU 2016-09 | Retained Earnings | |||||||||||
Net increase in common shareholder's equity | 4,200 | ||||||||||
Cumulative effect of adoption | ASU 2018-02 | Retained Earnings | |||||||||||
Net increase in common shareholder's equity | $ 1,500 | ||||||||||
[1] | In the third quarter of 2020, Washington Gas made a voluntary change in accounting principle for calculating the market-related value of assets used in the determination of net periodic pension and other post-retirement benefit plan costs. We retrospectively applied this change in accounting principle to all applicable prior period financial information presented herein as required. Refer to Note 1 — Accounting Policies for further discussion. | ||||||||||
[2] | Due to implementation of ASU 2016-13 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, see Note 2 — Credit Losses for further information. | ||||||||||
[3] | Amount related to the adoption of ASU 2018-02. Washington Gas reclassified a credit of $1.5 million from Accumulated other comprehensive income to Retained earnings at September 30, 2018. |
Accounting Policies
Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Accounting Policies | ACCOUNTING POLICIES Nature of Operations and Basis of Presentation Following the 2018 Merger Agreement, Washington Gas became an indirect, majority owned subsidiary of, among other entities, AltaGas and WGL. In connection with the Merger and at the command of Washington Gas’ regulators, WGL formed a wholly owned subsidiary, Wrangler, a bankruptcy remote, special purpose entity to own the common stock of Washington Gas. In addition, WGL owns all of the shares of common stock of certain affiliated non-utility subsidiaries, some of which provide services to Washington Gas, and some of which own interests in other entities. On December 20, 2019, Washington Gas redeemed all the outstanding shares of its preferred stock. As a result, as of December 20, 2019, Washington Gas is a wholly owned subsidiary of AltaGas and WGL. As a public utility company, Washington Gas 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. The Financial Statements of Washington Gas have been prepared in conformity with GAAP and under the rules of the Securities and Exchange Commission (SEC). The information presented in this annual report on Form 10-K are presented solely for the registrant Washington Gas on a stand-alone basis. 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 of Fiscal Year End On December 28, 2018, our Board of Directors approved a change of Washington Gas' fiscal year from the period beginning on October 1 and ending on September 30 to the period beginning on January 1 and ending on December 31. This annual report on Form 10-K is for the twelve-month period from January 1, 2020 to December 31, 2020. References in this report to "calendar year" refer to the year ended December 31. References in this report to "fiscal year" refer to the twelve-month period ending on September 30. Change in Accounting Principle During the third quarter of 2020, Washington Gas made a voluntary change in accounting principle for calculating the market-related value of assets (MRVA) used in the determination of net periodic pension and other post-retirement benefit plan costs. The change uses the fair value approach for the fixed income investments and related derivatives, which represent a separate asset class of the plan assets, compared to the prior method that utilized a calculated value for all investments where gains and losses arising from changes in fair value were deferred and amortized into the calculation of the MRVA over a period of five years. The MRVA is used in the calculation of the expected return on assets and the recognized actuarial gain or loss components of net periodic benefit cost. The gains and losses for other plan assets will continue to be deferred and amortized into the MRVA over a five-year period. We believe that using the fair value approach for the fixed income investments and related derivatives in our plan assets is preferable because the Company will immediately recognize the gains and losses of the fixed income investments and derivatives in MRVA rather than deferring them over a five-year period, which results in a better matching of the change in fixed income investments and the related pension obligations. We retrospectively applied this change in accounting principle to all applicable prior period financial information presented herein as required. The change in accounting principle increased retained earnings $8.0 million and decreased accumulated other comprehensive income (loss), net of taxes, $0.4 million, with a net increase of $7.6 million in common shareholder’s equity at October 1, 2017. The following tables summarize the effect of the change in accounting principle on the primary financial statement line items on Washington Gas' balance sheets, statements of operations, statements of comprehensive income, statements of common shareholder's equity, and statements of cash flows. The following Notes have been impacted by the change: Note 5 — Regulated Operations , Note 9 — Income Taxes , Note 10 — Pension and Other Post — Retirement Benefit Plans, Note 17 — Accumulated Other Comprehensive Income (Loss), Note 19 — Comparative Data, and Note 20 — Quarterly Financial Information. December 31, 2020 December 31, 2019 (In thousands) Without Change Adjustment As Reported (with change) As Previously Reported Adjustment As Adjusted Balance Sheets Regulatory assets — Pension and other post-retirement benefits $ (6,539) $ 10,419 $ 3,880 $ 39,435 $ 4,643 $ 44,078 Common shareholder’s equity $ 1,843,211 $ 12,714 $ 1,855,925 $ 1,572,196 $ 6,396 $ 1,578,592 Regulatory liabilities — Pension and other post-retirement benefits $ 269,181 $ (6,770) $ 262,411 $ 199,665 $ (3,995) $ 195,670 Deferred income taxes $ 652,401 $ 4,475 $ 656,876 $ 462,475 $ 2,242 $ 464,717 Calendar Year Ended Calendar Year Ended (In thousands) Without Change Adjustment As Reported (with change) As Previously Reported Adjustment As Adjusted Statements of Operations Other income (expense) — net $ 12,195 $ 9,542 $ 21,737 $ 9,478 $ (3,656) $ 5,822 Income tax expense (benefit) $ 30,367 $ 2,477 $ 32,844 $ 19,032 $ (949) $ 18,083 Net income $ 124,810 $ 7,065 $ 131,875 $ 99,812 $ (2,707) $ 97,105 Statements of Comprehensive Income Other comprehensive income (loss), net of taxes $ (2,252) $ (747) $ (2,999) $ 11,536 $ 146 $ 11,682 Comprehensive income $ 122,558 $ 6,318 $ 128,876 $ 111,348 $ (2,561) $ 108,787 Condensed Statements of Cash Flows Net income $ 124,810 $ 7,065 $ 131,875 $ 99,812 $ (2,707) $ 97,105 ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES Accrued/deferred pension and other post-retirement benefit cost (benefit) $ 1,142 $ (9,542) $ (8,400) $ (1,466) $ 3,656 $ 2,190 Deferred income taxes — net $ 39,048 $ 2,477 $ 41,525 $ 19,690 $ (949) $ 18,741 Three Months Ended Fiscal Year Ended (In thousands) As Previously Reported Adjustment As Adjusted As Previously Reported Adjustment As Adjusted Statements of Operations Other income (expense) — net $ 3,494 $ (1,449) $ 2,045 $ (7,592) $ 3,366 $ (4,226) Income tax expense (benefit) $ 7,847 $ (376) $ 7,471 $ (25,863) $ 874 $ (24,989) Net income (loss) $ 49,173 $ (1,073) $ 48,100 $ (26,642) $ 2,492 $ (24,150) Statements of Comprehensive Income Other comprehensive income (loss), net of taxes $ (4,797) $ 71 $ (4,726) $ 2,692 $ (161) $ 2,531 Comprehensive income (loss) $ 44,376 $ (1,002) $ 43,374 $ (23,950) $ 2,331 $ (21,619) Condensed Statements of Cash Flows Net income $ 49,173 $ (1,073) $ 48,100 $ (26,642) $ 2,492 $ (24,150) ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES Accrued/deferred pension and other post-retirement benefit cost (benefit) $ (330) $ 1,449 $ 1,119 $ 11,127 $ (3,366) $ 7,761 Deferred income taxes — net $ 8,012 $ (376) $ 7,636 $ (26,435) $ 874 $ (25,561) Statements of Common Shareholder's Equity Retained Earnings Accumulated Other (In thousands) As Previously Reported Adjustment As Adjusted As Previously Reported Adjustment As Adjusted Balance, September 30, 2017 $ 630,691 8,017 $ 638,708 $ (4,522) (389) (4,911) Net income (loss) (26,642) 2,492 (24,150) — Other comprehensive income 4,176 (161) 4,015 Stock-based compensation 4,197 4,197 — ASU 2018-02 adoption impact 1,484 1,484 (1,484) (1,484) Dividends declared: Common stock (89,568) (89,568) Preferred stock (1,320) (1,320) Balance, September 30, 2018 $ 518,842 $ 10,509 $ 529,351 $ (1,830) $ (550) $ (2,380) Net income 49,173 (1,073) 48,100 Other comprehensive loss (4,797) 71 (4,726) Dividends declared: Common stock (24,237) (24,237) Preferred stock (330) (330) Balance, December 31, 2018 $ 543,448 $ 9,436 $ 552,884 $ (6,627) $ (479) $ (7,106) Net income 99,812 (2,707) 97,105 Other comprehensive income 11,536 146 11,682 Loss on preferred stock extinguishment (556) (556) Dividends declared: Common stock (100,000) (100,000) Preferred stock (1,169) (1,169) Balance, December 31, 2019 $ 541,535 $ 6,729 $ 548,264 $ 4,909 $ (333) $ 4,576 Without Change Adjustment As Reported (With change) Without Change Adjustment As Reported (With change) Net income 124,810 7,065 131,875 Other comprehensive loss (2,252) (747) (2,999) ASU 2016-13 implementation (1,543) (1,543) Dividends declared: Common stock (75,000) (75,000) Balance, December 31, 2020 $ 589,802 $ 13,794 $ 603,596 $ 2,657 $ (1,080) $ 1,577 Property, Plant and Equipment Property, plant and equipment 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. AFUDC equity is reported on the statements of operations as non-cash income in "Other income (expense)". AFUDC debt is reported as a non-cash offset to interest expense. After construction is completed, the Company is permitted to recover these costs through inclusion in rate base and the corresponding subsequent depreciation or amortization of those regulated assets. The rates for AFUDC for the calendar years ended December 31, 2020 and 2019, the three months ended December 31, 2018, and fiscal year ended September 30, 2018 were 2.33%, 3.48%, 5.84% and 2.42%, respectively. Costs of replacement and betterments that extend the useful life of property, plant, and equipment are also capitalized. The cost of maintenance and repairs, which do not extend the useful life or increase the expected output of the asset, are expensed as incurred. Depreciation applicable to utility gas plant in service primarily uses a straight-line method over the estimated remaining life of the plant. The composite annual depreciation and amortization rate was 2.80%, 2.96%, 2.78%, and 2.77% for the calendar years ended December 31, 2020 and 2019, the three months ended December 31, 2018, and fiscal year ended September 30, 2018, respectively. In accordance with regulatory requirements, such rates include a component related to asset removal costs for Washington Gas. Washington Gas periodically reviews the adequacy of its depreciation rates by considering estimated remaining lives and other factors. The following table represents the components of Washington Gas' Property, Plant and Equipment at original cost. ($ In millions) December 31, 2020 2019 Distribution, transmission and storage $ 5,502.6 86.5 % $ 5,148.1 86.3 % General, miscellaneous, intangibles and finance leases 547.9 8.6 % 543.2 9.1 % Construction work in progress (CWIP) 312.9 4.9 % 271.6 4.6 % Total 6,363.4 100.0 % 5,962.9 100.0 % Impairment of Long-Lived Assets Management regularly reviews property and equipment and other long-lived assets for possible impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. For property 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 a 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 asset, using assumptions about future cash inflows and outflows over the life of an asset. During the fiscal year ended September 30, 2018, Washington Gas recorded a $38.0 million impairment to Property, Plant and Equipment in connection with an agreement ancillary to the merger proceeding not to seek recovery of certain costs incurred under the Formal Case 1027 mechanical coupling program. During the calendar years ended December 31, 2020 and 2019 and the three months ended December 31, 2018, Washington Gas did not record any impairments related to our long-lived assets. Refer to Note 15 — Fair Value Measurements of the Notes to Financial Statements for further discussion of these assets. Cash, Cash Equivalents, and Restricted 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 represent funds that are restricted and are not available for general use by the Company. 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, rabbi trust funds were funded to satisfy certain executives and outside director retirement benefit plan obligations. The rabbi trust funds are invested in money market funds which are considered 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” and current liabilities are classified in “Current Assets-Other” on Washington Gas’ balance sheets. Refer to Note 10 — Pension and Other Post-Retirement Benefits for a further discussion of the rabbi trusts. Receivables and Allowance for Doubtful Accounts Receivables on the balance sheets include account receivables and unbilled revenues, including contract assets. Account receivables from contracts with customers, which consist of services to residential, commercial, industrial and other customers, were $238.2 million and $259.1 million at December 31, 2020 and 2019, respectively. Washington Gas accrues unbilled revenues for gas delivered, but not yet billed at the end of each accounting period due to our customer billing cycles. Unbilled revenues represent performance obligations that have been satisfied and to which Washington Gas has an unconditional right to payment, except for contract assets related to Washington Gas’ area-wide contract, which requires project acceptance by the federal government for the right to payment to occur. Total unbilled revenues and contract assets were $128.8 million and $160.5 million at December 31, 2020 and 2019, respectively, were included in "Receivables" on Washington Gas' balance sheets. Refer to Note 3 — Revenue from Contracts with Customers for further discussion on unbilled revenue and contract assets . Receivables are recorded net of allowance for doubtful accounts. Washington Gas estimates its bad debt expense based on current sales and establishes the allowance. Periodically, Washington Gas evaluates the reasonableness of the allowance utilizing a variety of factors including historical payment and collection experience, current economic conditions, receivable aging, and the financial health of its customers. If the financial condition of its customers deteriorates or other circumstances occur that impact the customers’ ability or desire to make payments, Washington Gas considers these factors in its evaluation of the adequacy of the allowance. Accounts are written off to the allowance when collection efforts are complete and future recovery is unlikely. Refer to Note 2 — Credit Losses for further discussion of allowance for doubtful accounts. Regulatory Assets and Liabilities Washington Gas accounts for its regulated operations in accordance with ASC Topic 980, Regulated Operations (ASC Topic 980), which results in differences in the application of GAAP between regulated and unregulated businesses. ASC Topic 980 requires recording regulatory assets or liabilities for certain transactions that would have been treated as expense or revenue in unregulated businesses. Washington Gas defers the recognition of an incurred cost and records a regulatory asset when it is probable that these costs will be recovered in future rates. Washington Gas defers the recognition of revenue and records a regulatory liability when it is probable that it will refund an amount previously collected from customers or refund a gain to customers. Additionally, Washington Gas records a regulatory liability when a regulator provides current rates intended to recover costs that will be incurred in the future. Future regulatory changes or changes in the competitive environment could result in WGL discontinuing the application of ASC Topic 980 for some of its business and require the write-off of the portion of any regulatory asset or liability for which recovery or refund is no longer probable. If Washington Gas were required to discontinue the application of ASC Topic 980 for any of its operations, it would record a non-cash charge or credit to income for the net book value of its regulatory assets and liabilities. Other adjustments might also be required. The current regulatory environment and Washington Gas’ specific facts and circumstances support both the continued application of ASC Topic 980 for our regulatory activities and the conclusion that all of our regulatory assets and liabilities as of December 31, 2020 are recoverable or refundable through rates charged to customers. See Note 5 — Regulated Operations for further discussion of our regulated operations. Leases We determine if an arrangement is a lease and the lease classification at inception. Washington Gas has operating leases for our corporate headquarters and other corporate offices, communication tower space, and certain office equipment. Operating leases are included in "Operating lease right-of-use (ROU) assets", "Current liabilities-Operating lease liability", and "Deferred credits-Operating lease liability". The Company also has leases of vehicles which are classified as finance leases. Finance leases are included in "Property, Plant and Equipment", "Current liabilities-Other", and "Long -term debt" on the balance sheets. ROU assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. For the operating leases in which we are the lessee, a ROU asset and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. We use the rate implicit in the lease to determine the present value of the lease payments when the rate is readily determinable or we use our incremental borrowing rate. Our ROU assets are adjusted for lease incentives, any lease payments made in advance, and initial direct costs incurred. Lease expenses are recognized on a straight-line basis over the lease term. The estimated lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. For our lessee building and certain equipment leases, we do not separate the lease and non-lease components. Variable lease payments are recognized as lease expense when the related facts and circumstances occur, and are dependent on various external factors, including real estate taxes, common area maintenance and usage charges. The Company has elected not to record a ROU asset and lease liability for short-term leases. Short-term leases are defined as leases with a term of 12 months or less at the commencement date, including extension options that are reasonably certain of being exercised, and do not include an option to purchase the underlying asset. For our multiple office location leases classified as operating leases, the lease term begins on the date when construction of the leasehold improvements can start and the lessor has allowed us to occupy the respective locations. Leasehold improvement costs are classified as “Property, Plant, and Equipment” on the balance sheet, and are being amortized to “Depreciation and amortization” expense on a straight-line basis over the non-cancelable period of the leases. The Company also has lessor leases for land, office space and communication tower space that are classified as operating leases. Lease payments under operating leases are recognized on a straight-line basis over the lease term. Revenue and Cost of Gas Recognition Revenues. Washington Gas generally recognizes revenue from contracts with customers when natural gas is delivered. 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. Refer to Note 3 — Revenue from Contracts with Customers for further discussion of the Utility’s revenue from contracts with customers. Alternative Revenue Programs. Certain ratemaking mechanisms of Washington Gas qualify as alternative revenue programs in accordance with ASC Topic 980, if (i) the program is established by an order from a regulatory commission and allows for automatic adjustment of future rates, (ii) additional program revenues (above those amounts currently reflected in base rates) are objectively determinable and probable of recovery, and (iii) the collection of the additional revenues is allowed within 24 months of the end of the period in which they were recognized. The Company has determined that its RNA, WNA and CRA billing adjustment mechanisms and APRPs are alternative revenue programs. Alternative revenue program revenues represent the initial recognition of revenue related to these programs. When amounts are billed and collected from customers through rates, the amounts are recorded as a recovery of the associated regulatory asset or liability. 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, regulatory fees, franchise fees and energy taxes are reported gross in operating revenues. During the calendar years ended December 31, 2020 and 2019, the three months ended December 31, 2018, and fiscal year ended September 30, 2018, $77.5 million, $81.8 million, $24.2 million, and $82.5 million, respectively, were recorded to "Operating revenues" of Washington Gas' statements of operations. 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 because of the imbalance. The regulatory treatment combines the imbalance for all marketers, including our affiliate WGL Energy Services, into a single “net” adjustment to the regulatory asset or liability. Refer to Note 16 — 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 outline how the profits from these transactions should be shared with Washington Gas’ customers. 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 statements of operations or, in the case of amounts to be shared with rate payers, regulatory assets/liabilities on the balance sheets. Materials, Supplies and Storage Gas Washington Gas values materials, supplies and storage gas using a weighted-average cost method. These materials, supplies and storage gas are carried at the lower of weighted-average cost or net realizable value. 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 year. In general, commodity costs and variable transportation costs are capitalized as gas in underground storage. Fixed costs, primarily pipeline demand charges and storage charges, are expensed as incurred through the cost of gas. Washington Gas did not record a material lower-of-cost or net realizable value adjustment to net income for the calendar years ended December 31, 2020 and 2019, the three months ended December 31, 2018, and fiscal year ended September 30, 2018. Derivative Activities 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 fair value changes of 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 operations in “Utility cost of gas”. Washington Gas historically utilized 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 14 — Derivatives for further discussion of our derivative activities. 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 computed on a separate company basis. 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 5 — Regulated Operations for Washington Gas’ regulatory assets and liabilities associated with income taxes due from and due to customers. 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. Refer to Note 9 — Income Taxes which provides detailed financial information related to our income taxes. Stock-Based Compensation We account for stock-based compensation expense in accordance with ASC Topic 718, Compensation-Stock Compensation, or ASC Topic 710, Compensation - General for certain awards that do not meet the definition of a stock-based award under ASC 718. All outstanding awards at December 31, 2020 and 2019 are liability-classified share-based awards. We recognize stock-based compensation expense based on their fair value at the end of each reporting period. Compensation expense for awards subject to ASC 710 is recognized based on the probable outcome of the award at the end of each reporting period. For all 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 11 — 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. 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. Changes in Asset Retirement Obligations (In millions) Calendar Years Three Months Fiscal Year 2020 2019 2018 2018 Asset retirement obligations at beginning of the period $ 211.6 $ 308.1 $ 305.5 $ 298.9 Liabilities incurred in the period 1.7 1.7 — 1.4 Revaluation of asset retirement obligation — (101.0) — — Liabilities settled in the period (4.8) (7.4) — (7.3) Accretion expense 8.7 10.2 2.6 12.5 Asset retirement obligations at the end of the period (a) $ 217.2 $ 211.6 $ 308.1 $ 305.5 (a) Includes short-term asset retirement obligations of $5.0 million, $4.8 million, $7.3 million and $7.3 million for calendar years ended December 31, 2020 and 2019, the three months ended December 31, 2018, and fiscal year ended September 30, 2018, respectively. Dividend Restrictions Generally, Washington Gas can make dividend payments in the ordinary course of business unless any of the following regulatory limitations apply: (i) Washington Gas will not pay extraordinary dividends to its parent for three years after the Merger Close, (ii) Washington Gas will not pay dividends to its parent company if Washington Gas' senior unsecured debt rating is below investment grade or (iii) Washington Gas will not make a dividend payment to its parent company if the payment would result in its equity level to drop below 48%, We had no significant restrictions on our cash balances or retained earnings that would affect the payment of dividends during the reported |
Credit Losses
Credit Losses | 12 Months Ended |
Dec. 31, 2020 | |
Credit Loss [Abstract] | |
Credit Losses | CREDIT LOSSES On January 1, 2020, the Company adopted ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (CECL) model. The measurement of expected credit losses under the CECL model is applicable to financial assets measured at amortized cost and off-balance sheet credit exposures. The CECL model requires the expected credit losses to consider past events, including historical experience, current conditions and reasonable and supportable forecasts. When measuring credit losses, financial assets with similar risk characteristics should be pooled, and credit losses should be recognized over the contractual term of the financial asset. In addition, entities may make a one-time irrevocable election on certain eligible financial instruments to elect fair-value treatment on an instrument-by-instrument basis. Our assessment concluded that our cash equivalents, accounts receivables, unbilled revenue, contract assets, and a long term receivable from one of our trading partners that is part of a collaborative arrangement are within scope of the new standard. We adopted the standard using a modified-retrospective approach through a cumulative-effect adjustment to retained earnings at January 1, 2020. Prior periods presented for comparative purposes are not adjusted. Upon implementation of ASU 2016-13 Customer Receivables: Washington Gas is exposed to customer credit risk resulting from the non-payment of utility bills. To manage this customer credit risk, Washington Gas customers are offered budget billing options or higher risk customers may be required to provide a cash deposit until the requirement for deposit refunds are met. Washington Gas can recover a portion of non-payments from customers in future periods through the rate-setting process. For accounts receivable and unbilled revenue generated by the utility business, an allowance for doubtful accounts is recognized using a historical loss-rate based on historical payment and collection experience. This rate may be adjusted based on management’s expectations of unusual macroeconomic conditions and other factors. Washington Gas regularly evaluates the reasonableness of the allowance based on a combination of factors, such as the length of time receivables are past due, historical expected payment, collection experience, financial condition of customers, and other circumstances that could impact customers' ability or desire to make payments. Based on previous collection experience, Washington Gas has not recorded an allowance for doubtful accounts for its contract assets associated with our energy management services projects with the federal government. Refer to Note 16 — Related Party Transactions for further information. Washington Gas Asset Optimization : Washington Gas operates under an existing wholesale counterparty credit policy that is designed to mitigate credit risk. Credit limits are established for each counterparty and credit enhancements such as letters of credit, parent guarantees and cash collateral maybe required. The creditworthiness of all counterparties is continuously monitored. The allowance for doubtful accounts is estimated by applying 30-year historical default rates for one-year receivables sourced from external credit rating agencies to the accounts receivable and unbilled revenue balances associated with counterparties Washington Gas has determined to be below investment grade. In the event that a counterparty no longer exhibits similar risk characteristics, the associated receivable is evaluated individually. Washington Gas also has a long-term receivable from a trading partner totaling $1.5 million in “Deferred charges and other assets — Other”, of which no portion of the balance is past due. The trading partner was evaluated and assigned an internal credit rating in accordance with our credit policy. An allowance for doubtful accounts is recorded based on historical default rates published by external credit rating agencies and a rate commensurate with the period in which the receivable is expected to be collected. Estimated credit loss reserve was recorded as a reduction to “Deferred charges and other assets — Other”. COVID-19 : The COVID-19 pandemic has resulted in widespread challenges to businesses and the job market in 2020. The increased unemployment rates has impacted the ability of the Company’s customers to pay for services. As a result of regulatory orders, we temporarily suspended customer disconnections for non-payment, temporarily suspended collection activities and temporarily waived assessing and billing late payment fees. While the suspension of disconnections has been lifted in Maryland for non-residential customers in the fourth quarter of 2020, the suspension in District of Columbia and Virginia continues. We resumed assessing late payment fees in Maryland in October 2020 following a regulatory order. The suspension of collection activities has caused our overall accounts receivable portfolio to age more than historical levels. However, we do not expect the increase in credit losses to have a significant impact on net income. In addition, the PSC of DC, the PSC of MD and the SCC of VA each issued an Order authorizing Washington Gas to establish a regulatory asset to capture and track the incremental COVID-19 related costs. In December 2020, Washington Gas received $7.7 million of Coronavirus Relief Funds from SCC of VA to provide direct assistance to Virginia customers with balances over 30 days in arrears. Virginia customers need to meet the criteria established by the program to get the fund. Any unused funds will be returned to SCC. Considering the Virginia Coronavirus Relief Funds, Washington Gas has recorded a total of $6.3 million in deferrals of incremental bad debt expense to COVID-19 regulatory assets across all three jurisdictions at December 31, 2020. As of December 31, 2020, we have evaluated the adequacy of our allowance for credit losses in light of the suspension of shut-offs for nonpayment due to COVID-19 and the economic downturn. Our evaluation included an analysis of customer payment trends in 2020, economic conditions, receivables aging, and considerations of past economic downturns, the actions the company is taking to assist customers with past due balances, and the corresponding allowance for credit losses and customer account write-offs. In addition, we considered benefits available under government COVID-19 relief programs. Based on this evaluation, we have concluded that the allowance for credit losses as of December 31, 2020 adequately reflected the collection risk and net realizable value for our receivables. We will continue to monitor changing circumstances and will adjust our allowance for credit losses as additional information becomes available. The following table presents the activity of allowance for doubtful accounts by types. (In millions) Calendar Year Ended December 31, 2020 Account Receivables and Unbilled Revenue Asset Optimization Balance, beginning of period $ 18.7 $ — Provision 15.7 — Recorded to regulatory asset due to COVID-19 6.3 — Write offs (16.9) — Recoveries 2.1 — Adjustment upon adoption of ASC 326 1.4 0.1 Balance, end of period $ 27.3 $ 0.1 |
Revenue from Contracts With Cus
Revenue from Contracts With Customers | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | REVENUE FROM CONTRACTS WITH CUSTOMERS The Company recognizes revenue from contracts with customers to depict the transfer of goods or services to customers at an amount it expects to be entitled to in exchange for those goods or services. Washington Gas sells natural gas and distribution services to residential, commercial, industrial and governmental customers through regulated tariff rates approved by regulatory commissions in the jurisdictions where it operates. Customers are billed monthly based on regular meter readings. Customer billings are based on two main components: (i) a fixed service fee and (ii) a variable fee based on usage. For customers who choose to purchase their natural gas from Washington Gas, the bill will include a usage-based charge for the cost of the commodity. Revenue is recognized over time as natural gas is delivered or as service is performed. Since meter readings are performed on a cycle basis, Washington Gas recognizes accrued revenue for any services rendered to its customers but not billed at month-end. The tariff sales are generally considered daily or “at-will” contracts as customers may cancel their service at any time (subject to notification requirements in the tariff), and revenue generally represents the amount Washington Gas is entitled to invoice. There are certain contracts that have terms of one year or longer. For these contracts, revenue is recognized based on the amount Washington Gas is entitled to bill the customer. Customers have the choice to purchase natural gas from competitive service providers. Washington Gas charges the competitive service providers balancing fees to manage the natural gas transportation imbalances. Where regulations require, Washington Gas issues customers a consolidated bill to include the natural gas supplied by the competitive service providers and distribution of natural gas. Washington Gas recognizes revenue only for distribution services that it has provided to the customer, and the balancing fees for the services provided to the competitive service provider. The following table disaggregates revenue by type of service for the periods. Disaggregated Revenue by Type of Service (c) (In millions) Calendar Years Ended Three Months Ended December 31, 2020 2019 2018 Revenue from contracts with customers Gas and transportation sales Gas sold and delivered $ 856.0 $ 975.8 $ 303.2 Gas delivered for others 265.0 270.7 74.3 Other 35.0 46.5 12.5 Other revenues 3.4 5.6 1.5 Total revenue from contracts with customers $ 1,159.4 $ 1,298.6 $ 391.5 Other sources of revenue Revenue from alternative revenue programs (a) $ 69.8 $ 19.6 $ 9.1 Other (b) 5.1 12.5 1.5 Total revenue from other sources 74.9 32.1 10.6 Total Operating Revenue $ 1,234.3 $ 1,330.7 $ 402.1 (a) Washington Gas has determined that its RNA, WNA, and CRA billing adjustment mechanisms and accelerated pipe replacement programs are alternative revenue programs and accounted for under ASC Topic 980. b) The amount includes late fees billed. The decreases from prior periods were primarily caused by not billing of late payment fees due to COVID-19 as required by regulatory orders. c) The Company adopted ASU 2014-09, Revenue from Contracts with Customers (ASC 606), on October 1, 2018, using the modified retrospective method of adoption. Under this approach, prior year results are not required to be restated. Washington Gas accrues unbilled revenues for gas delivered, but not yet billed at the end of each accounting period due to our customer billing cycles. Unbilled revenues of $112.7 million and $116.3 million are included within "Receivables" on Washington Gas' balance sheets at December 31, 2020 and December 31, 2019, respectively. Unbilled revenues represent performance obligations that have been satisfied and to which Washington Gas has an unconditional right to payment, except for contract assets related to Washington Gas’ area-wide contract, which requires project acceptance by the federal government for the right to payment to occur. Washington Gas did not have any contract liabilities at December 31, 2020 and 2019. The Company does not have transaction price amounts allocated to future performance obligations. The Company applies the practical expedient available under ASC Topic 606 and does not disclose information about the remaining performance obligations for (i) contracts with an original expected length of one year or less, (ii) contracts for which revenue is recognized at the amount to which the Company has the right to invoice for performance completed, and (iii) contracts with variable consideration that is allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied promise to transfer a distinct good or service that forms part of a single performance obligation. The following table shows the opening and closing balances of contract assets from contracts with customers for the reporting periods, which were included within "Receivables" on Washington Gas' balance sheets. (In millions) 2020 2019 Contract assets at January 1 $ 44.2 $ 85.3 Contract assets at December 31 16.1 $ 44.2 Increase (decrease) in contract assets (a) $ (28.1) $ (41.1) (a) Decrease in 2020 reflected projects accepted by federal government, offset to the contact asset was a reduction to "Payable to associated companies"; Decrease in 2019 was due to the sale of the contract asset. Refer to "Project financing" in Note 16 — Related party transactions for detail discussion. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | LEASES We adopted ASU 2016-02, Leases (ASC 842) and associated standards on January 1, 2019 and elected to implement this new lease standard retrospectively at the beginning of the period of adoption through a cumulative-effect adjustment. Under this approach, prior year results are not required to be restated and disclosures associated with prior periods are reported under ASC 840. Lessee Leases Washington Gas has operating leases for our corporate headquarters and other corporate offices, communication tower space, and certain office equipment. The Company also has finance leases for vehicles. Our leases have remaining lease terms from 1 to 21 y ears. Some of the leases include options to extend the lease terms for 1 to 5 years with prior written notice or automatically renew if either party does not provide intent to terminate. The leases generally have options to terminate with notice prior to the end of the lease term based on the contract terms. Refer to Note 16 — Related Party Transactions for discussion of leases with associated companies. The following table provides our expected operating and finance lease payments at December 31, 2020. Maturity of Operating and Finance Lease Liabilities (In millions) Operating Leases Finance Leases 2021 $ 5.8 $ 0.1 2022 5.7 0.1 2023 5.8 0.1 2024 5.9 0.1 2025 5.4 0.1 Thereafter 41.2 — Total lease payments $ 69.8 $ 0.5 Less: Interest (13.2) — Present Value of Lease Liabilities $ 56.6 $ 0.5 The following table provides the components of lease expense. Components of Lease Expense (b) (In millions) Calendar Years Ended December 31, 2020 2019 Operating lease cost (a) Rent expense $ 5.3 $ 5.2 Variable lease cost $ 1.9 $ 1.9 Total Operating lease cost $ 7.2 $ 7.1 (a) Short-term lease cost for the periods was insignificant. (b) Finance lease cost was insignificant. Rent expense for the three months ended December 31, 2018, and fiscal year ended September 30, 2018 was $0.6 million and $5.8 million, respectively. The following table provides supplemental cash flow information related to operating and finance leases. Supplemental Cash Flow Information Calendar Years Ended December 31, ($ in millions) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities (a) Operating cash flows from operating leases $ 6.2 $ 2.9 Right-of-use assets obtained in exchange for lease liabilities Operating leases $ 1.6 $ 1.5 Finance leases $ 0.4 n/a (a) Operating and financing cash flows from finance leases were insignificant. The following table provides balance sheet location and amounts for finance leases, weighted average remaining lease term and weighted average discount rates for operating and finance leases. Supplemental Balance Sheet Information for Finance Leases ($ in millions) 2020 2019 Finance leases Property, plant and equipment, at original cost $ 0.4 n/a Accumulated depreciation and amortization $ — n/a Net property, plant and equipment $ 0.4 n/a Current finance lease liability included in "Current liabilities-Other" $ 0.1 n/a Non-current finance lease liability included in "Long-term Debt" $ 0.3 n/a Weighted average remaining lease term Operating leases 12.4 years 13.3 years Finance leases 4.9 years n/a Weighted average discount rate Operating leases 3.27 % 3.32 % Finance leases 1.69 % n/a Lessor Leases The Company also has lessor leases for land, office space and communication tower space that are classified as operating leases. Washington Gas has elected not to separate the lease and non-lease components for its building leases. Our leases have remaining lease terms ranging from less than a year to 80 years. Some of the leases include options to extend the lease terms for 1 to 5 years with prior written notice or automatically renew if the lessee does not provide intent not to renew. The leases generally have options to terminate the leases with notice prior to the end of the lease term based on the contract terms. The lease agreements do not contain material residual value guarantees. The following table summarizes the future operating lease payments to be received associated with these leases: Maturity of Operating Lease Payments (a) December 31, 2020 2021 $ 1.1 2022 0.8 2023 0.8 2024 0.7 2025 0.6 Thereafter 57.3 Total lease payments $ 61.3 (a) The payments are presented on an undiscounted basis The property, plant and equipment associated with these leases are not significant. The following table provides the operating lease income recognized for the periods. Operating Lease Revenue Recognized ($ in millions) Calendar Years Ended December 31, 2020 2019 Leasing revenue included in Operating Revenue $ 0.7 $ 0.7 Lease revenue included in Other income (expense) — net $ 0.4 $ 0.4 Total $ 1.1 $ 1.1 During the calendar years ended December 31, 2020 and 2019, Washington Gas did not record any impairments related to our leased assets. |
Leases | LEASES We adopted ASU 2016-02, Leases (ASC 842) and associated standards on January 1, 2019 and elected to implement this new lease standard retrospectively at the beginning of the period of adoption through a cumulative-effect adjustment. Under this approach, prior year results are not required to be restated and disclosures associated with prior periods are reported under ASC 840. Lessee Leases Washington Gas has operating leases for our corporate headquarters and other corporate offices, communication tower space, and certain office equipment. The Company also has finance leases for vehicles. Our leases have remaining lease terms from 1 to 21 y ears. Some of the leases include options to extend the lease terms for 1 to 5 years with prior written notice or automatically renew if either party does not provide intent to terminate. The leases generally have options to terminate with notice prior to the end of the lease term based on the contract terms. Refer to Note 16 — Related Party Transactions for discussion of leases with associated companies. The following table provides our expected operating and finance lease payments at December 31, 2020. Maturity of Operating and Finance Lease Liabilities (In millions) Operating Leases Finance Leases 2021 $ 5.8 $ 0.1 2022 5.7 0.1 2023 5.8 0.1 2024 5.9 0.1 2025 5.4 0.1 Thereafter 41.2 — Total lease payments $ 69.8 $ 0.5 Less: Interest (13.2) — Present Value of Lease Liabilities $ 56.6 $ 0.5 The following table provides the components of lease expense. Components of Lease Expense (b) (In millions) Calendar Years Ended December 31, 2020 2019 Operating lease cost (a) Rent expense $ 5.3 $ 5.2 Variable lease cost $ 1.9 $ 1.9 Total Operating lease cost $ 7.2 $ 7.1 (a) Short-term lease cost for the periods was insignificant. (b) Finance lease cost was insignificant. Rent expense for the three months ended December 31, 2018, and fiscal year ended September 30, 2018 was $0.6 million and $5.8 million, respectively. The following table provides supplemental cash flow information related to operating and finance leases. Supplemental Cash Flow Information Calendar Years Ended December 31, ($ in millions) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities (a) Operating cash flows from operating leases $ 6.2 $ 2.9 Right-of-use assets obtained in exchange for lease liabilities Operating leases $ 1.6 $ 1.5 Finance leases $ 0.4 n/a (a) Operating and financing cash flows from finance leases were insignificant. The following table provides balance sheet location and amounts for finance leases, weighted average remaining lease term and weighted average discount rates for operating and finance leases. Supplemental Balance Sheet Information for Finance Leases ($ in millions) 2020 2019 Finance leases Property, plant and equipment, at original cost $ 0.4 n/a Accumulated depreciation and amortization $ — n/a Net property, plant and equipment $ 0.4 n/a Current finance lease liability included in "Current liabilities-Other" $ 0.1 n/a Non-current finance lease liability included in "Long-term Debt" $ 0.3 n/a Weighted average remaining lease term Operating leases 12.4 years 13.3 years Finance leases 4.9 years n/a Weighted average discount rate Operating leases 3.27 % 3.32 % Finance leases 1.69 % n/a Lessor Leases The Company also has lessor leases for land, office space and communication tower space that are classified as operating leases. Washington Gas has elected not to separate the lease and non-lease components for its building leases. Our leases have remaining lease terms ranging from less than a year to 80 years. Some of the leases include options to extend the lease terms for 1 to 5 years with prior written notice or automatically renew if the lessee does not provide intent not to renew. The leases generally have options to terminate the leases with notice prior to the end of the lease term based on the contract terms. The lease agreements do not contain material residual value guarantees. The following table summarizes the future operating lease payments to be received associated with these leases: Maturity of Operating Lease Payments (a) December 31, 2020 2021 $ 1.1 2022 0.8 2023 0.8 2024 0.7 2025 0.6 Thereafter 57.3 Total lease payments $ 61.3 (a) The payments are presented on an undiscounted basis The property, plant and equipment associated with these leases are not significant. The following table provides the operating lease income recognized for the periods. Operating Lease Revenue Recognized ($ in millions) Calendar Years Ended December 31, 2020 2019 Leasing revenue included in Operating Revenue $ 0.7 $ 0.7 Lease revenue included in Other income (expense) — net $ 0.4 $ 0.4 Total $ 1.1 $ 1.1 During the calendar years ended December 31, 2020 and 2019, Washington Gas did not record any impairments related to our leased assets. |
Regulated Operations
Regulated Operations | 12 Months Ended |
Dec. 31, 2020 | |
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 statements of operations 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 13 — Commitments and Contingencies for further discussion of regulatory matters and related contingencies. At December 31, 2020 and 2019, 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 December 31, December 31, 2020 2019 2020 2019 Current: Gas costs due from/to customers (a) $ 10.9 $ 5.9 $ 47.3 $ 44.2 Interruptible sharing (a) 0.7 2.1 1.0 0.3 Revenue normalization mechanisms for Maryland and Virginia (a) 15.1 — — 4.0 Accelerated replacement recovery mechanisms (k) 4.7 1.9 0.3 0.3 Rates subject to refund (c) — — — 31.1 Virginia Coronavirus Relief Fund (o) — — 7.7 — Tax Cuts and Jobs Act rate refunds (d) — — 15.9 25.5 Total current $ 31.4 $ 9.9 $ 72.2 $ 105.4 Deferred: Accrued asset removal costs (l) $ — $ — $ 239.3 $ 254.4 Deferred gas costs (a)(b) 109.0 98.7 — — Pension and other post-retirement benefits ASC Topic 715 unrecognized costs/income (a)(e) Pension (n) 3.9 44.1 — — Pension and other post-retirement benefits (n) — — 262.4 195.7 Total pension and other post-retirement benefits 3.9 44.1 262.4 195.7 Other: Income tax-related amounts due from/to customers (f) 29.8 26.0 373.5 400.6 Losses/gains on issuance and extinguishment of debt and interest-rate derivative instruments (a)(g) 13.0 13.9 1.1 1.2 Rights-of-way fees (a) — — 1.6 2.4 Business process outsourcing and related costs (a) 0.6 1.9 — — Non-retirement employee benefits (a)(h) 16.5 14.9 — — Deferred distribution integrity management (a)(i) 0.7 2.0 — — Recoverable portion of abandoned liquid natural gas facility (a) 2.0 2.3 — — Environmental response costs (a)(j) 7.4 7.0 — — Energy efficiency program-Maryland (m) 14.3 9.3 — — COVID-19 related costs (p) 7.9 — — — Other regulatory items 7.6 7.6 0.8 0.5 Total other $ 99.8 $ 84.9 $ 377.0 $ 404.7 Total deferred $ 212.7 $ 227.7 $ 878.7 $ 854.8 Total $ 244.1 $ 237.6 $ 950.9 $ 960.2 (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. The amounts also include $5.1 million and $4.7 million receivables related to sharing with our customers associated with the Antero contract at December 31, 2020 and 2019, respectively. Refer to Note 13 — Commitments and Contingencies for discussion about the Antero contract. (c) Represents estimated refunds related to customers billed at a higher rate during the interim period as part of the 2019 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 9 — Income Taxes in the Notes to Financial Statements. (e) Refer to Note 10 — Pension and Other Post-Retirement Benefit Plans for a further discussion of these amounts. (f) 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. (g) The losses or gains on the issuance and extinguishment of debt and interest-rate derivative instruments include unamortized balances from transactions executed in prior years. These transactions create gains and losses that are amortized over the remaining life of the debt as prescribed by regulatory accounting requirements. (h) Represents the timing difference between the recognition of workers compensation and short-term disability costs in accordance with generally accepted accounting principles and the recovery of these costs through rates. (i) This balance represents amounts for deferred expenditures associated with Washington Gas’ Distribution Integrity Management Program (DIMP) in Virginia. (j) 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. (k) Balance represents amounts deferred over collections or under collections of surcharges associated with Washington Gas' accelerated pipeline recovery programs in the District of Columbia, Maryland and Virginia compared the amounts reflected in revenues. (l) Refer to Note 1 — Accounting Policies for a further discussion of these amounts. (m) Balance represents amounts for costs incurred associated with Washington Gas' participation in the energy conservation and efficiency program EmPOWER in Maryland that are recovered from customer over time. (n) Regulatory assets and liabilities related to Pension and Other post-retirement benefits were adjusted due to the change in accounting principle we made during the third quarter of 2020. We retrospectively applied this change in accounting principle to all applicable prior period financial information presented herein as required. Refer to Note 1 — Accounting Policies for further discussion. (o) Virginia Coronavirus Relief Funds received to provide direct assistance to Virginia customers with balance over 30 days in arrears. (p) Regulatory assets established to capture and track the incremental COVID-19 related costs. 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. During the calendar year ended December 31, 2019, Washington Gas recorded a $2.0 million write down of the regulatory asset related to our distribution integrity management program related to Virginia rate case. During the three months ended December 31, 2018, Washington Gas recorded a $2.5 million write down to the regulatory asset associated with business process outsourcing costs, which was disallowed as a result of the Maryland Rate Case. |
Accounts Payable and Other Accr
Accounts Payable and Other Accrued Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Accounts Payable and Other Accrued Liabilities | ACCOUNTS PAYABLE AND OTHER ACCRUED LIABILITIES The table below provides details for the amounts included in “Accounts payable and other accrued liabilities” on the balance sheets. (In millions) December 31, 2020 December 31, 2019 Accounts payable — trade $ 201.2 $ 154.3 Employee benefits and payroll accruals 22.3 39.2 Wages payable 19.5 22.2 Accrued interest 18.4 17.3 Other accrued liabilities (a) 31.1 34.4 Total $ 292.5 $ 267.4 a) Amount includes $12.5 million and $11.7 million liability associated with the Antero contract at December 31, 2020 and 2019, respectively. Refer to Note 13 — Commitments and Contingencies for further information. |
Short-Term Debt
Short-Term Debt | 12 Months Ended |
Dec. 31, 2020 | |
Short-term Debt [Abstract] | |
Short-Term Debt | SHORT-TERM DEBT Washington Gas satisfies the short-term financing requirements through the sale of commercial paper, or through bank borrowings. Due to the seasonal nature of our operations, 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 Washington Gas is to maintain bank credit facilities in amounts equal to or greater than the expected maximum commercial paper position. Credit Facility The following is a summary of committed credit available at December 31, 2020 and 2019. Committed Credit Available (In millions) December 31, 2020 December 31, 2019 Committed credit agreements Unsecured revolving credit facility, expires July 19, 2024 (a) $ 450.0 $ 450.0 Less: Commercial Paper outstanding (b) (285.0) (400.0) Net committed credit available $ 165.0 $ 50.0 Weighted average interest rate 0.31 % 2.04 % (a) Washington Gas has the right to request extensions with the bank group 's approval. Washington Gas’ revolving credit facility permits it to borrow an additional $100.0 million, with the bank groups' approval, for a total potential maximum borrowing of $550.0 million. (b) The amount represents principal amount of commercial paper. At December 31, 2020 and 2019, there were no outstanding bank loans from Washington Gas’ revolving credit facilities. Commercial Paper The carrying value of commercial paper recorded was $285.0 million and $399.5 million at December 31, 2020 and 2019, respectively. At both December 2020 and 2019, we classified $100.0 million of commercial paper balance as "Long-term debt" on Washington Gas' balance sheets due to its ability and intent to refinance these balances on a long-term basis. Accordingly, $185.0 million and $299.5 million of commercial paper remained in “Notes payable” at December 31, 2020 and 2019, respectively. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2020 | |
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 December 31, 2020 and 2019, 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 December 31, 2020, Washington Gas had remaining capacity under a shelf registration statement that was filed in May 2018 to issue up to $325.0 million of additional medium-term notes (MTN's). Unsecured Notes Washington Gas issues long-term debt in the form of MTNs 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 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 table shows the outstanding notes with maturities in calendar years at December 31, 2020 and 2019. Long Term Debt Outstanding (In millions) December 31, 2020 December 31, 2019 Washington Gas Unsecured Notes (a) Due 2023, 6.65% $ 20.0 $ 20.0 Due 2025, 5.44% 40.5 40.5 Due 2026, 6.62% to 6.82% 53.0 53.0 Due 2027, 6.40% to 6.57% 72.0 72.0 Due 2028, 6.57% to 6.85% 52.0 52.0 Due 2030, 7.50% 8.5 8.5 Due 2036, 5.70% to 5.78% 50.0 50.0 Due 2040, 5.21% 75.0 75.0 Due 2043, 5.00% 75.0 75.0 Due 2044, 4.22% to 4.24% 150.0 150.0 Due 2046, 3.80% 450.0 450.0 Due 2049, 3.65% 400.0 300.0 Commercial Paper due in 2024 ( c) 100.0 100.0 Total Principal Amount of Long-Term Debt $ 1,546.0 $ 1,446.0 Unamortized debt premium (discount) 12.5 (4.3) Unamortized debt expense (11.6) (10.8) Non-current finance lease liability (d) 0.3 — Total Carrying Amount of Long-Term Debt $ 1,547.2 $ 1,430.9 Weighted average interest rate (b) 4.46 % 4.52 % (a) Includes MTNs and private placement notes. The amount represents face value of long-term debt including current maturities. (b) Weighted average interest rate is for the Washington Gas unsecured notes including current maturities. (c) At both December 2020 and 2019, we classified $100.0 million commercial paper balance as "Long-term debt" on Washington Gas' balance sheets due to its ability and intent to refinance these balances on a long-term basis. Refer to Note 7 — Short-term debt for discussion on the credit facility. (d) Refer to Note 4 — Leases for additional information related to finance leases. The following table shows the issuances and retirements of Washington Gas' unsecured notes for the calendar year ended December 31, 2020 and 2019, three months ended December 31, 2018. There were no issuances and retirements during the fiscal year ended September 30, 2018. Washington Gas' Unsecured Notes Issuances and Retirements (In millions) Principal (a)(c) Interest Rate (b) Effective Cost (b) Nominal Maturity Date Calendar Year Ended December 31, 2020 Issuances: 12/10/2020 $ 100.0 3.65 % 2.84 % 9/15/2049 Calendar Year Ended December 31, 2019 Issuances: 09/13/2019 $ 300.0 3.65 % 3.72 % 9/15/2049 Retirements: 11/1/2019 $ 50.0 4.76 % 4.76 % 11/1/2019 Three Months Ended December 31, 2018 Retirements: 12/05/2018 $ 50.0 7.46 % 7.46 % 12/5/2018 (a) Represents face amount of notes. (b) Represents the interest rate and effective cost at the trade date of the debt. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Washington Gas is included in the ASUS consolidated income tax returns. We have a tax sharing policy with ASUS, an indirect, wholly owned subsidiary of AltaGas, that allocates consolidated tax liabilities and benefits using a ratio determined by the separate taxable income for each member applied to the consolidated return tax liability of the group. State income tax returns are filed on a separate company basis in most states and on a unitary basis as required, where we or the consolidated ASUS group have operations and/or a requirement to file. At December 31, 2020, Washington Gas recorded $112.2 million receivable in "Receivables from associated companies" and a $0.6 million payable in "Payables to associated companies" under the ASUS tax sharing policy on Washington Gas' balance sheets, respectively. At December 31, 2019, Washington Gas recorded $5.5 million receivable in "Receivables from associated companies" and a $0.6 million payable in "Payables to associated companies" under the ASUS tax sharing policy on Washington Gas' balance sheets, respectively. The Coronavirus Aid, Relief and Economic Security Act ("CARES Act") was signed into law on March 27, 2020. The CARES Act includes various income and payroll tax provisions. Washington Gas will benefit from certain provisions such as the deferral of payment of applicable payroll taxes. As of December 31, 2020, we have deferred payroll tax payment of approximately $7.9 million through December 31, 2020. There was no other material impact to our financial statements. Components of Income Tax Expense or Benefit The following tables provide the components of income tax expenses for the calendar years ended December 31, 2020 and 2019, three months ended December 31, 2018, and fiscal year ended September 30, 2018. Components of Income Tax Expense (Benefit) Calendar Years Three Months Fiscal Year (In thousands) 2020 2019 2018 2018 Current: Federal $ (6,660) $ — $ — $ — State (1,470) — — 1,274 Total current (8,130) — — 1,274 Deferred: Federal 27,704 11,496 8,746 (35,668) State 13,821 7,245 (1,110) 10,107 Total deferred (a)(b) 41,525 18,741 7,636 (25,561) Amortization of investment tax credits (551) (658) (165) (702) Total income tax expense (benefit) $ 32,844 $ 18,083 $ 7,471 $ (24,989) (a) Includes tax expense of $1.2 million and $7.0 million related to re-measurement of deferred income taxes for three months ended December 31, 2018 and the fiscal year ended September 30, 2018, respectively. (b) The amounts were adjusted due to the change in accounting principle we made during the third quarter of 2020. We retrospectively applied the change in accounting principle to all applicable prior period financial information presented herein as required. Refer to Note 1 — Accounting Policies for further discussion. Rate Reconciliation The effective income tax rate from continuing operations varies from the U.S. Federal statutory rate principally due to the following. Reconciliation Between the Statutory Federal Income Tax Rate and Effective Tax Rate Calendar Years Ended Three Months Ended Fiscal Year (In thousands) 2020 2019 2018 2018 Income taxes at statutory federal income tax rate (a) $ 34,591 21.00 % $ 24,189 21.00 % $ 11,670 21.00 % $ (10,319) 21.00 % Increase (decrease) in income taxes resulting from: Plant basis differences — — 699 0.61 (4,261) (7.67) 1,079 (2.20) Allowance for funds used during construction — — — — (520) (0.94) (70) 0.14 Amortization of investment tax credits (551) (0.33) (658) (0.57) (165) (0.30) (703) 1.43 Amortization of excess deferred taxes (12,189) (7.40) (18,020) (15.64) (2,431) (4.37) (9,798) 19.94 Cost of removal — — 5,837 5.07 (28) (0.05) (1,561) 3.18 State income taxes-net of federal benefit (b) 10,631 6.45 6,259 5.43 2,665 4.80 (2,492) 5.07 Re-measurement due to Tax Act 2017 — — — — 1,243 2.23 7,031 (14.31) ASU 2016-09 adoption — — — — — — (3,223) 6.56 Return to provision adjustment (5) — (1,666) (1.45) — — (4,669) 9.50 Other items-net 367 0.22 1,443 1.25 (702) (1.26) (264) 0.54 Total income tax expense (benefit) and effective tax rate $ 32,844 19.94 % $ 18,083 15.70 % $ 7,471 13.44 % $ (24,989) 50.85 % (a) As a result of the merger with AltaGas, Washington Gas 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 tax rate. Due to the net operating loss for federal tax purposes through September 30, 2018, all the year activity is ultimately taxed at 21%. As such, for presentational purposes, we applied a 21% rate to the entire fiscal year 2018 activity. (b) The amounts in 2019 and 2018 were adjusted due to the change in accounting principle we made in 2020. We retrospectively applied the change in accounting principle to all applicable prior period financial information presented herein as required. Refer to Note 1 — Accounting Policies for further discussion. Components of accumulated deferred income tax assets and liabilities The following table provides the components of accumulated deferred income tax assets (liabilities) for Washington Gas at December 31, 2020 and 2019. Components of Accumulated Deferred Income Tax Assets (Liabilities) (In thousands) December 31, 2020 December 31, 2019 Deferred income tax assets: Pensions (a) $ 3,048 $ 15,718 Uncollectible accounts 4,739 4,856 Inventory overheads 3,911 3,504 Employee compensation and benefits 30,604 30,461 Derivatives 5,695 6,522 Income taxes recoverable through future rates 145,567 130,946 Net operating loss 63,444 132,774 Other 4,810 — Total assets 261,818 324,781 Deferred income tax liabilities: Other post-retirement benefits (a) 115,836 88,031 Accelerated depreciation and other plant related items 787,035 691,134 Losses/gains on reacquired debt — 499 Deferred gas costs 15,823 9,831 Other — 3 Total liabilities 918,694 789,498 Net accumulated deferred income tax assets (liabilities) $ (656,876) $ (464,717) (a) The amounts in 2019 were adjusted due to the change in accounting principle we made during the third quarter of 2020. We retrospectively applied the change in accounting principle to all applicable prior period financial information presented herein as required. Refer to Note 1 — Accounting Policies for further discussion. The Company has a federal deferred tax asset of $22.6 million created from the net operating loss of $108.0 million that was generated through December 31, 2020. The Tax Act of 2017 extended the carryforward period to an indefinite period. The Company's state net operating losses of $40.8 million have the expiration dates beginning in 2033. The Company's net operating losses will be utilized under the settlement of the tax sharing policy with affiliated companies. Tabular Reconciliation of Unrecognized Tax Benefits The following table summarizes the change in unrecognized tax benefits during calendar years ended December 31, 2020 and 2019, three months ended December 31, 2018, and fiscal year ended September 30, 2018, and our total unrecognized tax benefits at the periods under the provisions of ASC Topic 740. Unrecognized Tax Benefits Calendar Years Three Months Fiscal Year (In thousands) 2020 2019 2018 2018 Total unrecognized tax benefits at beginning of the periods $ 26,459 $ 35,906 $ 43,567 $ 48,009 Increases resulting from current period tax positions — — 2,574 10,947 Decreases resulting from prior period tax positions (15,394) (9,447) (10,235) (15,389) Total unrecognized tax benefits at end of the periods $ 11,065 $ 26,459 $ 35,906 $ 43,567 During the calendar years ended December 31, 2020 and 2019, the three months ended December 31, 2018 and the fiscal year ended September 30, 2018, the unrecognized tax benefits for Washington Gas decreased by approximately $15.4 million, $9.4 million, $7.7 million and $4.4 million, respectively, relating to uncertain tax positions, primarily due to the change in tax accounting for repairs and closed periods. 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 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 Washington Gas recognizes 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 calendar years ended December 31, 2020 and 2019, three months ended December 31, 2018 and the fiscal year ended September 30, 2018, there were no accrued interest expense or penalties associated with uncertain tax positions. |
Pension and Other Post-Retireme
Pension and Other Post-Retirement Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Pension and Other Post-Retirement Benefit Plans | PENSION AND OTHER POST-RETIREMENT BENEFIT PLANS 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. At December 31, 2020, the rabbi trust balance associated with these two plans were $18.8 million, of which $6.7 million was recorded in “Current Assets-Other” and $12.1 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. Washington Gas offers 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 made matching contributions of $5.6 million, $5.2 million, $1.1 million and $5.0 million during the calendar years ended December 31, 2020 and 2019, three months ended December 31, 2018, and fiscal year ended September 30, 2018, 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 plans were $3.8 million, $3.2 million, $0.7 million and $2.7 million during the calendar year ended December 31, 2020 and 2019, three months ended December 31, 2018, and fiscal year ended September 30, 2018, 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 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 Health Reimbursement Account plan (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 well as additional reimbursement for catastrophic prescription drug costs. 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. 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.” Change in Accounting Principle During the third quarter of 2020, Washington Gas made a voluntary change in accounting principle for calculating the MRVA used in the determination of net periodic pension and other post-retirement benefit plan costs. The effect of the change on pension and other post-retirement plans has been adjusted to the periods presented herein. Refer to Note 1— Accounting Policies for further discussion. Obligations and Assets The following table provides the benefit obligation, fair value of plan assets, the funded status of the plans, and amounts recognized on the Company's balance sheets. Post-Retirement Benefits Pension Benefits (a) Health and Life Benefits Calendar Years Ended Calendar Years Ended (In millions) 2020 2019 2020 2019 Change in projected benefit obligation (b) Benefit obligation at beginning of period $ 1,059.9 $ 971.8 $ 269.2 $ 277.9 Service cost 12.5 12.3 5.3 5.0 Interest cost 35.5 41.2 9.3 11.9 Change in plan benefits — 0.2 — — Actuarial loss (gain) 77.9 103.6 25.2 (12.3) Plan participants' contribution — — 1.6 1.6 Settlements (18.9) (19.4) — — Benefits paid (53.2) (50.6) (15.4) (15.8) Other — 0.8 0.5 0.9 Projected benefit obligation at end of period (b) $ 1,113.7 $ 1,059.9 $ 295.7 $ 269.2 Change in plan assets Fair value of plan assets at beginning of period 935.2 807.0 638.0 528.8 Actual return on plan assets 168.9 176.7 107.4 123.4 Company contributions 21.0 21.5 — — Plan participants' contribution — — 1.6 1.6 Settlements (18.9) (19.4) — — Expenses — — — — Benefits paid (53.2) (50.6) (15.3) (15.8) Fair value of plan assets at end of period $ 1,053.0 $ 935.2 $ 731.7 $ 638.0 Funded status at end of period (60.7) (124.7) 436.0 368.8 Allocation to affiliates (0.4) (0.8) 2.7 2.3 Adjusted funded status at end of period $ (60.3) $ (123.9) $ 433.3 $ 366.5 Total amounts recognized on balance sheet Non-current asset — — 433.0 366.5 Current liability (6.7) (19.6) — — Non-current liability (53.6) (104.3) — — Total recognized $ (60.3) $ (123.9) $ 433.0 $ 366.5 (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), accumulated benefit obligation (ABO), and fair value of plan assets the qualified pension plan, DB SERP and DB Restoration at December 31, 2020 and 2019. Projected and accumulated benefit obligation (In millions) Qualified Pension Plan DB SERP DB Restoration December 31, December 31, December 31, 2020 2019 2020 2019 2020 2019 Projected benefit obligation $ 1,075.5 $ 1,002.3 $ 32.4 $ 52.3 $ 5.8 $ 5.4 Accumulated benefit obligation $ 1,022.0 $ 943.2 $ 32.4 $ 52.3 $ 5.6 $ 4.8 Fair value of plan assets $ 1,053.0 $ 935.2 $ — $ — $ — $ — Amounts Recognized in Regulatory Assets/Liabilities and Accumulated Other Comprehensive Income (Loss) The following table provides amounts recorded to regulatory assets, regulatory liabilities and accumulated other comprehensive loss (income) at December 31, 2020 and 2019. The decrease in the actuarial net loss related to pension benefits and increase in the actuarial gain related to health and life benefits at December 31, 2020 compared to 2019 were due to the actual return on plan assets being higher than expected. Unrecognized Costs/Income Recorded on the Balance Sheet (In millions) Pension Benefits Health and Life Benefits December 31, December 31, 2020 2019 2020 2019 Actuarial net loss (gain) $ (0.4) $ 60.1 $ (189.4) $ (133.1) Prior service cost (credit) 0.7 1.0 (73.2) (87.0) Total (a) $ 0.3 $ 61.1 $ (262.6) $ (220.1) Regulatory asset (liability) (6.0) 44.1 (252.5) (195.7) Pre-tax accumulated other comprehensive loss (income) (b) 6.3 16.8 (8.4) (23.0) Total $ 0.3 $ 60.9 $ (260.9) $ (218.7) (a) Pension benefits include amount allocated to affiliates of $0.2 million at December 31, 2019. There was no amount allocated to the affiliates at December 31, 2020. Health and Life Benefits includes amounts allocated to affiliates of $1.7 million and $1.4 million at December 31, 2020 and 2019, respectively. (b) The total amount of accumulated other comprehensive loss recorded on our balance sheets at December 31, 2020 and 2019 was net of an income tax expense of $0.5 million and $1.6 million, respectively. The following tables provide 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 before allocations to affiliates and capital during the calendar years ended December 31, 2020 and 2019. Amounts Recognized During the Calendar Year Ended December 31, 2020 Regulatory assets/liabilities Accumulated other (In millions) Pension Health and Pension Health and Actuarial net loss (gain) $ 5.4 $ (1.8) $ 2.3 $ (0.2) Prior service cost (credit) 0.2 (12.0) 0.1 (1.6) Total $ 5.6 $ (13.8) $ 2.4 $ (1.8) Amounts Recognized During the Calendar Year Ended December 31, 2019 Regulatory assets/liabilities Accumulated other (In millions) Pension Health and Pension Health and Actuarial net loss $ 6.1 $ — $ 1.8 $ — Prior service cost (credit) 0.1 (15.0) 0.2 (0.7) Total $ 6.2 $ (15.0) $ 2.0 $ (0.7) Washington Gas uses the MRVA in the determination of net periodic benefit cost. Realized and unrealized gains and losses for assets under Washington Gas’ post-retirement benefit plans are recognized immediately for fixed income securities and are spread over a period of five years for all other asset classes. The fair value approach is used for the fixed income investments and related derivatives. For all other asset classes gains and losses arising from changes in fair value are deferred and amortized into the calculation of the MRVA over a period of five years. Each year 20% of the prior five years’ asset gains and losses are recognized. We use the corridor approach to amortize actuarial gains and losses. Under this approach, net gains or losses in excess of ten percent of the larger of the benefit obligation or the MRVA are amortized on a straight-line basis. Net Periodic Benefit Cost The components of the net periodic benefit costs (income) related to pension and other post-retirement benefits were as follows. Components of Net Periodic Benefit Costs (Income) Pension Benefits Health and Life Benefits Calendar Years Ended Three Months Fiscal Year Calendar Years Ended Three Months Fiscal Year (In millions) 2020 2019 2018 2018 2020 2019 2018 2018 Service cost $ 12.5 $ 12.3 $ 3.0 $ 14.9 $ 5.3 $ 5.0 $ 1.3 $ 5.3 Interest cost 35.5 41.2 10.6 39.6 9.3 11.9 3.0 11.7 Expected return on plan assets (43.2) (42.1) (10.1) (43.6) (23.6) (24.2) (6.1) (24.4) Recognized prior service cost (credit) 0.3 0.3 0.1 0.3 (13.6) (15.8) (4.4) (17.6) Recognized actuarial loss (gain) 7.7 7.9 2.0 14.2 (2.0) — — — Settlement charge (a) 4.9 5.5 — — — — — — Other adjustments (b) — — — — — 0.7 — — Net periodic benefit cost (income) $ 17.7 $ 25.1 $ 5.6 $ 25.4 $ (24.6) $ (22.4) $ (6.2) $ (25.0) Allocation to affiliates (1.3) (1.8) (0.4) (4.2) 1.3 2.6 0.8 3.1 Adjusted net periodic benefit cost (income) $ 16.4 $ 23.3 $ 5.2 $ 21.2 $ (23.3) $ (19.8) $ (5.4) $ (21.9) Amount allocated to construction projects (c ) (1.6) (1.9) (0.6) (4.7) (0.7) (0.8) (0.2) 4.0 Amount deferred as regulatory asset (liability)-net allocations (d) — 0.6 1.5 5.9 — — — — Amount charged (credited) to expense $ 14.8 $ 22.0 $ 6.1 $ 22.4 $ (24.0) $ (20.6) $ (5.6) $ (17.9) (a) Amounts relate to partial settlement charges associated with lump sum payments from the Washington Gas’ defined benefit supplemental executive retirement plan (DB SERP) to executives who have retired. (b) "Other Adjustments” in 2019 represents the one-time charge associated with the temporary deviation in the substantive plan of delaying the cap on pre-65 retiree medical benefits to 2021. © On October 1, 2018, Washington Gas prospectively adopted ASU 2017-07. As a result, only the service cost component of net periodic benefit costs (income) is eligible for capitalization. (d) Amounts represents 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. The amounts were fully amortized as of December 31, 2019 On October 1, 2018, Washington Gas adopted ASU 2017-07. 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. Washington Gas includes the other components in "Other Income (expense)-net" on the Statement of Operations. 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 were applied retrospectively. As a result of the retrospective adoption, we reclassified $11.3 million of net periodic benefit income from "Operation and maintenance" expense to "Other income (expense)-net" on the statements of operations for the fiscal year ended September 30, 2018. Changes in capitalization practices were implemented prospectively. 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 Calendar Years Three Months Fiscal Year Calendar Years Three Months Fiscal Year 2020 2019 2018 2018 2020 2019 2018 2018 Discount rate (a) 2.6%-2.8% 3.4%-3.5% 4.3%-4.4% 4.3%-4.4% 2.8% 3.5% 4.4% 4.4% Rate of compensation increase 2.5%-3.0% 3.0%-3.5% 3.5%-4.1% 3.5%-4.1% 2.5%-3.0% 3.5% 4.1% 4.1% (a) The decrease in the discount rate in the calendar year ended December 31, 2020 compared to prior years primarily reflects the decrease in long-term interest rates. Net Periodic Benefit Cost Assumptions Pension Benefits Health and Life Benefits Calendar Years Three Months Fiscal Year Calendar Years Three Months Fiscal Year 2020 2019 2018 2018 2020 2019 2018 2018 Discount rate (a) 3.4%-3.5% 4.3%-4.4% 4.3%-4.4% 3.6%-3.9% 3.5 % 4.4 % 4.4 % 3.9 % Expected long-term return on plan assets (b) 5.25% 5.75 % 5.75 % 5.75 % 4.50% 5.25 % 5.25 % 5.50 % Rate of compensation increase (c) 3.0%-3.5% 3.5% - 4.1% 3.5%-4.1% 3.5%-4.1% 3.5 % 4.1 % 4.1 % 4.1 % (a) The changes in the discount rates over the prior periods 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 blended income tax rate of 33.32%. (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 Beginning in October 2014, the SOA began publishing annual updates to its mortality tables for U.S. plans, starting with the RP-2014 base mortality table and the MP-2014 improvement scale. The improvement scale has been updated each year. In October 2020, the SOA issued and updated improvement scale (MP-2020). The MP-2020 improvement scale and the Pri-2012 (the Private Retirement Plans Mortality table for 2012) mortality table were used to determine the benefit obligation as of December 31, 2020. In October 2019, the SOA issued an updated base mortality table (Pri-2012) as well as an updated improvement scale (MP-2019). The white-collar Pri-2012 mortality table and MP-2019 improvement scale were used to determine the benefit obligation as of December 31, 2019. Healthcare cost trend Washington Gas assumed the healthcare cost trend rates related to the accumulated post-retirement benefit obligation at December 31, 2020, for non-Medicare eligible retirees, to be 2.2% starting in 2021 and expects the trend to remain at that level thereafter. Washington Gas assumed the healthcare cost trend rates related to the accumulated post-retirement benefit obligation at December 31, 2019, for non-Medicare eligible retirees, to be 6.25% for calendar year 2020 and expected the trend rate to decrease to 2.0% in calendar year 2021 and remain at that level thereafter. 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 calendar years 2021 - 2025, 4.0% increase in calendar year 2026 and 2% increase in calendar year 2027 and 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 each Plan’s 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. 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. An ALM study completed in January 2020 indicated that adopted target asset class allocations remained an appropriate trade-off between risk and reward. The following table includes the target asset allocation by asset class at December 31, 2020. Actual asset balances are reviewed monthly and allowed to range within plus or minus 5% of the target allocations. Assets are generally rebalanced to target allocations before actual amounts fall below or rise above the allowable ranges. Target Asset Allocation by Asset Class Qualified Pension Trust Asset (b) Union-eligible Trust Asset Management Trust Asset U.S. Equities 32 % 30 % 50 % International Equities 8 % — — Real Estate 5 % — — Fixed Income (a) 55 % 70 % 50 % Total 100 % 100 % 100 % (a) The Fixed Income asset class includes the related derivatives. (b) Investment strategy for the qualified pension plan includes increasing the target fixed income allocation percentage by 10% for each 5% improvement in the Plan’s funded ratio above the 100% funded level. 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. In addition, a publicly offered mutual fund and separately managed portfolios are employed in the management of a qualified pension plan trust. The management trust also uses a separately managed portfolio. 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 and 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. Derivatives are currently used in the Fixed Income portion of the portfolio. 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 at December 31, 2020 and 2019. Pension Plan Assets % of (In millions) Level 1 Level 2 Total Total At December 31, 2020 Cash and cash equivalents $ 4.9 $ — $ 4.9 0.5 % Equity securities Preferred Securities — 0.2 0.2 — Fixed income securities U.S. Treasuries — 149.2 149.2 14.2 U.S. Corporate Debt — 300.1 300.1 28.5 U.S. Agency Obligations and Government Sponsored Entities — 29.3 29.3 2.8 Asset-Backed Securities — 0.7 0.7 0.1 Municipalities — 10.0 10.0 0.9 Non-U.S. Corporate Debt — 46.5 46.5 4.4 Derivatives (c) — 0.3 0.3 — Other (a) — 13.1 13.1 1.2 Mutual Funds (b) 60.9 — 60.9 5.8 Total investments in the fair value hierarchy $ 65.8 $ 549.4 $ 615.2 58.4 % Investments measured at net asset value using the NAV practical expedient (d) Collective Trust Fund (e) 373.8 35.5 Commingled Funds and Pooled Separate Accounts (f) 25.0 2.4 Private Equity/Limited Partnership (g) 44.0 4.2 Total fair value of plan investments $ 1,058.0 100.5 % Net payable (h) (5.0) (0.5) Total plan assets at fair value (i) $ 1,053.0 100.0 % Pension Plan Assets % of (In millions) Level 1 Level 2 Total Total At December 31, 2019 Cash and cash equivalents $ 4.2 $ — $ 4.2 0.4 % Equity securities Preferred Securities — 0.2 0.2 — Fixed income securities U.S. Treasuries — 145.2 145.2 15.5 U.S. Corporate Debt — 234.8 234.8 25.1 U.S. Agency Obligations and Government Sponsored Entities — 56.7 56.7 6.1 Asset-Backed Securities — 0.8 0.8 0.1 Municipalities — 9.9 9.9 1.1 Non-U.S. Corporate Debt — 45.1 45.1 4.8 Other (a) — 6.3 6.3 0.7 Mutual Funds (b) 48.2 — 48.2 5.2 Derivatives (c) — (0.1) (0.1) — Total investments in the fair value hierarchy $ 52.4 $ 498.9 $ 551.3 59.0 % Investments measured at net asset value using the NAV practical expedient (d) Commingled Funds and Pooled Separate Accounts (f) 358.6 38.3 Private Equity/Limited Partnership (g) 42.8 4.6 Total fair value of plan investments $ 952.7 101.9 % Net payable (h) (17.5) (1.9) Total plan assets at fair value (i) $ 935.2 100.0 % (a) This category primarily includes non-U.S. government bonds as of December 31, 2020 and 2019. (b) At December 31, 2020 and 2019, the investment in a mutual fund consisted primarily of common stock of non-U.S. based companies. (c) December 31, 2020 and 2019, 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. (d) 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. (e) At December 31, 2020 investments in collective trust funds consisted primarily of 90.30% common stock of U.S companies; 7.35% income producing properties located in the United States; and 2.35% short-term money market investments. (f) At December 31, 2020, investments in commingled funds and a pooled separate accounts consisted of 100% income producing properties located in the United States. At December 31, 2019, 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 December 31, 2020 and 2019, investments in a private equity/limited partnership consisted of common stock of international companies. (h) 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 rabbi trust investments located in "Current Assets-Other" and "Deferred Charges and Other Assets-Other" on our balance sheets. Refer to Note 15 — Fair Value Measurements for fair value of rabbi trust investments. Healthcare and Life Insurance Plan Assets % of (In millions) Level 1 Level 2 Total Total At December 31, 2020 Cash and Cash Equivalents $ 4.9 $ — $ 4.9 0.7 % Fixed Income Securities U.S Agency Obligations — 0.7 0.7 0.1 U.S. Treasuries — 60.8 60.8 8.3 U.S. Corporate Debt — 73.1 73.1 10.0 Municipalities — 6.9 6.9 0.9 Non-U.S. Corporate Debt — 8.5 8.5 1.2 Other (a) — 5.3 5.3 0.7 Total investments in the fair value hierarchy $ 4.9 $ 155.3 $ 160.2 21.9 % Investments measured at net asset value using the NAV practical expedient (b) Commingled Funds (c) 571.7 78.1 % Total fair value of plan investments $ 731.9 100.0 % Net receivable (d) (0.2) — Total plan assets at fair value $ 731.7 100.0 % Healthcare and Life Insurance Plan Assets % of (In millions) Level 1 Level 2 Total Total At December 31, 2019 Cash and Cash Equivalents $ 3.4 $ — $ 3.4 0.5 % Fixed Income Securities U.S Agency Obligations — 2.2 2.2 0.3 U.S. Treasuries — 55.5 55.5 8.7 U.S. Corporate Debt — 56.3 56.3 8.8 Municipalities — 5.9 5.9 0.8 Non-U.S. Corporate Debt — 11.1 11.1 1.7 Other (a) — 2.9 2.9 0.5 Total investments in the fair value hierarchy $ 3.4 $ 133.9 $ 137.3 21.5 % Investments measured at net asset value using the NAV practical expedient (b) Commingled Funds (c) 499.6 78.3 % Total fair value of plan investments $ 636.9 99.8 % Net receivable (d) 1.1 0.2 Total plan assets at fair value $ 638.0 100.0 % (a) At December 31, 2020 and 2019, 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 December 31, 2020, investments held by commingled funds in which the plan invests consisted of 50% of common stock of large-cap U.S. companies, 20% of US Govt fixed income securities and 30% corporate bonds. At December 31, 2019, investments held by commingled funds in which the plan invests consisted 58% of common stock of large-cap U.S. companies, 18% of US Govt fixed income securities and 24% corporate bonds. (d) 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, commingled funds, pooled separate accounts and private equity/limited partnerships 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. The remaining asset types 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. 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 the calendar year ended December 31, 2020, Washington Gas did not contribute to its qualified pension but did contribute $20.5 million and $0.5 million to its DB SERP and DB Restoration plans, respectively, which was funded by the rabbi trust. For the calendar year of 2021, Washington Gas does not expect to make a contribution to its qualified pension plan and expects to contribute $7.5 million to its DB SERP and DB restoration plans, which is expected to be funded by the related rabbi trusts. During the calendar year 2020, Washington Gas did not make contributions for its health and life insurance benefit plans. Washington Gas does not expect to make a contribution to its health and life insurance benefit plans year in 2021. Expected Benefit Payments Expected benefit payments, including benefits attributable to estimated future employee service, which are expected to be paid over the next ten calendar years are as follows. Expected Benefit Payments (In millions) Pension Health and 2021 $ 58.0 $ 15.3 2022 57.8 15.0 2023 54.7 14.7 2024 55.6 14.5 2025 56.4 14.4 2026—2030 287.7 74.2 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 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 that was finalized in December 2018, the PSC of MD denied recovery through rates of the expenses of the SERP, resulting in a reclassification of $2.9 million from "Regulatory assets" to "Accumulated other comprehensive loss" on the balance sheet. Prior to December 2018, the PSC of MD approved 50% recovery through rates of the SERP expenses. 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 o |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION Current Awards We have stock-based awards outstanding in the form of performance units, restricted units and stock options. In December 2019, Washington Gas adopted a new Long-Term Incentive Plan which will be used for future grants. In addition, certain executives of Washington Gas may be awarded stock options under the AltaGas Share Option Plan. Washington Gas historically had a WGL shareholder-approved Omnibus Plan, which included grants made in shares of WGL stock. Effective upon the Merger with AltaGas in July 2018, WGL no longer has common stock outstanding and no new awards will be issued in WGL stock. ALA Phantom Units ALA phantom units include performance units and restricted units. All ALA phantom units have a three-year vesting period, are settled in cash, and are valued at an average ALA stock price per performance unit at vesting. The performance units vest from zero to 200 percent of the target award based on AltaGas' total shareholder return relative to a selected peer group of companies, which is a market condition under ASC Topic 718 and AltaGas' three-year adjusted funds from operation compounded growth per share during the performance period, which is a performance condition under ASC Topic 718. The restricted units vest from zero to 100 percent of the target award based on payment of a cash dividend by AltaGas. ALA phantom units are accounted for as liability awards under ASC 718 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. Performance Units Performance units have a three-year vesting period, are settled in cash and are valued at $1.00 per performance unit. A portion of the performance units vest 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 resulting payout is also adjusted from 80 to 120 percent by a modifier based on AltaGas' total shareholder return relative to a selected peer group of companies (TSR Modifier), which is a market condition under ASC Topic 718. A portion of the performance units vest from zero to 200 percent of the target award based on our three-year adjusted funds from operation compounded growth during the performance period, which is a performance condition under ASC Topic 718 (AFFO Award). The resulting payout if also adjusted by a TSR Modifier. Our performance units are accounted for as liability awards under ASC 718 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. Restricted Units Restricted units have a three-year vesting period, are paid in cash at the end of each year, and are valued at $1.00 per restricted unit. One third of the restricted units vest at the end of each year in the three-year period if AltaGas pays a dividend during that period. Our restricted units are accounted for deferred compensation under ASC 710 as they only settle in cash and do not have a market condition; therefore, we measure and record compensation expense for these awards based on the probable payment at the end of each period. The percentage of the probable payment 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. The following tables summarize information regarding performance unit and restricted unit activity during the calendar years ended December 31, 2020 and 2019. Performance Units and Restricted Units Award Activity Number of units Calendar Year Ended Calendar Year Ended ALA Phantom Units Performance Units Restricted ALA Phantom Units Performance Units Restricted Non-vested and outstanding, beginning of the year 27,707 3,558,711 940,414 — 5,934,828 2,253,585 Granted 427,607 — — 27,707 — — Vested — — (371,031) — — (620,382) Canceled/forfeited (111,357) (781,902) (270,019) — (2,376,117) (692,789) Non-vested and outstanding, end of year 343,957 2,776,809 299,364 27,707 3,558,711 940,414 For the calendar years ended December 31, 2020 and 2019, we recognized $1.9 million and $1.6 million compensation expense, respectively, related to the ALA phantom units, performance units and restricted units. At December 31, 2020 and 2019, total unrecognized compensation expense related to the performance units and restricted units was $0.4 million and $1.9 million, which will be recognized over a period of 0.75 years and 1.75 years, respectively. Total unrecognized compensation expense related to the ALA phantom units was $3.9 million and $0.5 million, respectively, which will be recognized over a period of 2 years. As of December 31, 2020 and 2019, we recorded a deferred liability of $2.7 million and $1.8 million, respectively, related to the grants in “Deferred Credits-other” and a current liability of $0.9 million and $0.2 million, respectively, in "Accounts payable and other accrued liabilities-other". For the calendar year ended December 31, 2020 and 2019 , we paid $0.4 million and $0.6 million, respectively, in cash to settle restricted unit awards. Stock Options Certain executives of Washington Gas were awarded AltaGas stock options. At both December 31, 2020 and 2019, one third of the options vest at the end of the year in a three-year vesting period and expire after six years. For the calendar years ended December 31, 2020 , we recognized total $0.6 million U.S. dollars compensation expense related to stock options. There was no such expense for the year ended December 31, 2019. At December 31, 2020 and 2019, the unrecognized expense for the fair value of share option compensation cost associated with future periods was $0.5 million and $0.3 million Canadian dollars, respectively. The following table summarizes information about the stock options. Calendar Year Ended Calendar Year ended Number of Exercise Price ( Canadian Dollars) Number of Exercise Price ( Canadian Dollars) Stock Options outstanding, beginning of year 208,561 $ 23.88 65,000 $ 35.16 Granted 338,962 $ 19.57 143,561 $ 18.78 Stock options outstanding, end of year 547,523 $ 21.21 208,561 $ 23.88 Stock option exercisable, end of year 106,604 $ 28.05 52,500 $ 36.14 At December 31, 2020 and 2019, the aggregate intrinsic value of the total share options exercisable, the total intrinsic value of share options outstanding, and the total intrinsic value of share options exercised were all insignificant. The following table summarizes the employee share option plan at December 2020. Options Outstanding Options Exercisable Number Outstanding Weighted Average Exercise Price (Canadian Dollars) Weighted Average Remaining Contractual Life (Years) Number Exercisable Weighted Average Exercise Price (Canadian Dollars) Weighted Average Remaining Contractual Life (Years) $18.00 to $25.08 482,523 19.33 5.00 47,854 18.78 4.96 $25.09 to $46.70 65,000 35.16 1.13 58,750 35.59 1.02 Total 547,523 21.21 4.54 106,604 28.05 2.54 The fair value of each option granted is estimated on the date of grant using the Black-Scholes-Merton option pricing model. The weighted average grant date fair value and assumptions are as follows. Calendar Years Ended December 31, 2020 2019 Fair value per options ( Canadian dollars ) 2.59 2.46 Risk-free interest rate (%) 1.57 1.63 Expected life (years) 6 6 Expected volatility (%) 25.05 24.99 Annual dividend per share ( Canadian dollars ) (a) 4.85 5.03 (a) Annual dividend per share is calculated based on a weighted average share price and forward dividend yields as the grant dates. Prior Merger Awards Prior to the Merger with AltaGas, Washington Gas had stock-based awards outstanding in the form of performance shares and performance unit s. Upon the Merger with AltaGas, the awards granted in fiscal years 2017 and 2016 were accelerated and became fully vested. The awards granted in fiscal year 2018 were converted to a fixed cash amount and still required vesting over a three-year period through September 2020. For the calendar year ended December 31, 2020, we recognized compensation expense of $0.4 million for the fiscal year 2018 grant. As of December 31, 2020, there was no unrecognized compensation expense or liability related to these awards. During the calendar year ended December 31, 2020, we paid $3.2 million in cash to settle the fiscal year 2018 grant. For the calendar year ended December 31, 2019, we recognized compensation expense of $2.0 million for the fiscal year 2018 grant. For the three months ended December 31, 2018, we recognized compensation expense $1.0 million for the fiscal year 2018 grant. For the fiscal year ended September 30, 2018, we recognized compensation expense $15.8 million for all outstanding awards. A $4.9 million income tax benefit was related to the compensation expense. $38.5 million cash was paid to settle the fiscal year 2017 and 2016 awards that were accelerated. Stock Grants to Directors |
Environmental Matters
Environmental Matters | 12 Months Ended |
Dec. 31, 2020 | |
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 manufactured gas plants (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 December 31, 2020 and 2019, Washington Gas reported a liability of $10.3 million and $10.7 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 December 31, 2020 and 2019, Washington Gas estimated the maximum liability associated with all of its sites to be approximately $30.6 million and $30.7 million, respectively. The maximum liability at December 31, 2020 included $19.1 million related to the Anacostia river study and $8.0 million related to the East Station property, which are further discussed below. 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 expected 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, located adjacent to the Anacostia River in Washington D.C., including ground water pump and treat, tar recovery, soil encapsulation and other treatment. Under a 2012 consent decree with the District of Columbia and the federal government, Washington Gas is also conducting a remedial investigation and feasibility study on an adjacent property owned by the District of Columbia. The Draft Remedial Investigation Report was submitted to the National Park Service (NPS) and the Department of Energy and Environment (DOEE) on June 12, 2020. Additional remediation may be required at this property. In addition, at another adjoining property known as the “Boat Club Property,” located to the east of the property owned by the District of Columbia, Washington Gas agreed to perform a site investigation and report the findings pursuant to oversight by the District of Columbia DOEE. This property was subject to a July 12, 2019, Administrative Order from the DOEE. That Administrative Order was withdrawn and the Company entered into a negotiated Administrative Order on Consent with the DOEE that was effective on March 11, 2020. Under the terms of the Administrative Order on Consent, the Company submitted a Remedial Investigative Report on February 26, 2021. Washington Gas received a letter in February 2016 from the DOEE 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. On December 27, 2019, DOEE issued an Anacostia River Sediment Project Proposed Plan, a River-wide Feasibility Study, and supporting documents for public comment. Although the Proposed Plan identifies East Station as one of fifteen potential environmental cleanup sites, DOEE is proposing to continue the remediation of East Station under Washington Gas’ existing Consent Decree rather than as part of the Anacostia River Sediment Project. DOEE issued an Interim Record of Decision for remediation of “Early Action Areas” (that do not include East Station) in the Anacostia River by September 30, 2020. On January 6, 2021, the Company received a supplement to a September 2017 information request from DOEE and the National Park Service regarding its East Station property. We are not able to estimate the total amount of potential costs 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 for estimated study costs 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 2035. Regulatory 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 December 31, 2020 and 2019, Washington Gas reported a regulatory asset of $7.4 million and $7.0 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 |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Commitments Natural Gas Contracts — Minimum Commitments At December 31, 2020, Washington Gas had service agreements with five pipeline companies that provide direct service for firm transportation and/or storage services. These agreements, which have expiration dates ranging from calendar years 2021 to 2044, 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 2021 to 2028. 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. In addition, Washington Gas has agreements for minimum contractual payments to purchase natural gas at variable market prices with expiration dates ranging from 2021 to 2033. 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 during the next five calendar years and thereafter. Washington Gas Contract Minimums (In millions) Pipeline Contracts (a) Gas Purchase (b) 2021 $ 259.4 $ 349.7 2022 254.0 359.9 2023 244.6 318.1 2024 212.7 323.4 2025 197.2 328.9 Thereafter 641.2 1,645.4 Total $ 1,809.1 $ 3,325.4 (a) Represents minimum payments for natural gas transportation, storage and peaking contracts that have expiration dates through calendar year 2044. (b) Includes known and reasonably likely commitments to purchase natural gas. Cost estimates are based on forward market prices at December 31, 2020. 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. Merger Commitments In connection with the Merger in 2018, Washington Gas and AltaGas have made commitments related to the terms of the PSC of DC settlement agreement and the conditions of approval from the PSC of MD and the SCC of VA. Among other things, these commitments included rate credits distributable to both residential and non-residential customers, gas expansion and other programs, various public interest commitments, and safety programs. As of December 31, 2020, the remaining unpaid amount for the previously accrued merger commitments was $11.9 million. In addition, there are certain additional regulatory commitments that were and will be expensed as the costs are incurred, including the hiring of damage prevention trainers in each jurisdiction for a total of $2.4 million over 5 years; investing up to $70.0 million over a 10-year period to further extend natural gas service; and spending $8.0 million for leak mitigation within 3 years after the Merger close which has been paid as of December 31, 2020. Additionally, there are a number of operational commitments that 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. The following table presents the future payments of merger commitments by calendar year. These commitments have been accrued on Washington Gas' balance sheets at December 31, 2020. Merger Commitments Payments (In millions) 2021 2022 2023 2024 2025 Thereafter Total Merger commitments $ 4.1 $ 1.5 $ 1.5 $ 1.2 $ 1.2 $ 2.4 $ 11.9 Financial Guarantees At December 31, 2020, there was no guarantee to external parties. Contingencies We account for contingent liabilities utilizing ASC Topic 450, Contingencies. By their nature, the amount of the contingency and the timing of a contingent event and any resulting accounting recognition are subject to our judgment of such events and our estimates of the amounts. Actual results related to contingencies may be difficult to predict and could differ significantly from the estimates included in reported earnings. Antero Contract. In June 2019, a jury trial was held in the County Court for Denver, Colorado to consider a contractual dispute relating to gas pricing between Washington Gas and its affiliate WGL Midstream and Antero Resources Corporation (Antero). Following the trial, the jury returned a verdict in favor of Antero for $95.9 million, of which $11.2 million was against Washington Gas, and $84.7 million against WGL Midstream. Following the official entry of the judgment, the Company filed an appeal on August 16, 2019. On December 10, 2020, the Colorado Court of Appeals issued an unpublished opinion affirming the judgment of the trial court. A satisfaction has been filed with the court after we paid the full legal liability in February 2021. As of December 31, 2020, the Company has accrued a legal liability with court fees and interest in a total amount of $12.5 million recorded in “Accounts payable and accrued liabilities” on Washington Gas' balance sheets, which was paid in February 2021. Washington Gas recorded a receivable from our trading partner for an amount expected to be recovered under a commercial arrangement, and a receivable related to sharing with our customers as the contract relates to asset optimization. The receivable from our trading partner, net of the allowance for doubtful accounts, was $1.4 million in “Deferred charges and other assets-Other”, and sharing with customers was $5.1 million in “Regulatory assets - Gas costs” on the balance sheets. Management believes that there are no additional contingencies associated with the Antero judgement. Regulatory Contingencies Certain legal and administrative proceedings incidental to our business, including regulatory contingencies, involve Washington Gas. In our opinion, we have recorded an adequate provision for probable losses or refunds to customers for regulatory contingencies related to these proceedings. Maryland Show-Cause Order. Following the National Transportation and Safety Board ( NTSB) hearing that examined the August 10, 2016, explosion and fire at an apartment complex in Silver Spring, Maryland, on September 5, 2019, the PSC of MD ordered the Company to (i) provide a detailed response to the NTSB’s probable cause findings, and (ii) provide evidence regarding the status of a 2003 mercury regulator replacement program, and if the program was not completed, to show cause why the Commission should not impose a civil penalty on the Company. Following several hearings throughout the course of 2019 and 2020, on December 18, 2020, the PSC of MD found that the Company failed to file annual reports informing the PSC of MD of the status of the Company’s program and imposed a $750,000 penalty on the Company for reporting violations. The PSC of MD ruled that the NTSB probable cause finding constituted hearsay and could not be admitted into the record of the case and did not undertake its own inquiry into the source of the explosion. The PSC of MD did not make any safety-related findings in the case but did find that the Company made an enforceable regulatory commitment to replace all mercury regulators. The Company paid the $750,000 penalty in January 2021 and management believes that there is no additional liability as a result of the ruling from the PSC of MD. In its December 18, 2020 order, the PSC of MD also found that Washington Gas' proposed implementation plan to replace all remaining mercury regulators within five years of completing a mercury regulator survey adequately addresses the need to replace all remaining mercury regulators in Maryland, and is in the public interest. The costs of the proposed implementation program are not yet known, and the recovery of these costs must be deferred until a future rate case. |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | DERIVATIVES 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. Washington Gas has a collaborative arrangement with a third party to facilitate the asset optimization program. The collaborative arrangement allocates a tiered percentage of profits or losses to the third party as compensation for its participation. The costs recorded by Washington Gas related to the collaborative arrangement totaled $8.6 million, $6.0 million, $2.1 million, and $9.5 million for the calendar years ended December 31, 2020 and 2019, the three months ended December 31, 2018, and fiscal year ended September 30, 2018, respectively. These amounts were recorded in “Utility cost of gas” on Washington Gas’ statements of operations. Either party may terminate the collaborative arrangement through the delivery of a termination notice. In such an event, Washington Gas may make a payment upon termination. The following table presents the net margin recorded to “Utility cost of gas” after sharing and management fees associated with our asset optimization transactions. Net Margins for Asset Optimization (In millions) Calendar Years Ended December 31, Three Months Ended December 31, Fiscal Year Ended September 30, 2020 2019 (a) 2018 (a) 2018 Realized gain $ 20.8 $ 13.1 $ 5.3 $ 23.9 Unrealized gain/(loss) 3.6 5.4 $ (4.2) 10.4 Net margin gain/(loss) $ 24.4 $ 18.5 $ 1.1 $ 34.3 (a) The net margin for the calendar year ended December 31, 2019 also includes a $3.0 million loss related to Antero contract. Refer to Note 13 — Commitments and Contingencies for further information of Antero contract. 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. Notional Summary The following table presents the balance sheet classification for all derivative instruments at December 31, 2020 and 2019. Absolute Notional Amounts of Open Positions on Derivative Instruments December 31, 2020 December 31, 2019 Natural Gas (In millions of therms) Asset optimization & trading 10,471.0 11,671.0 Other risk-management activities 881.0 976.0 Location, Fair Value and Offsetting of Derivative Assets and Liabilities Recognized on the Balance Sheets The following table presents the balance sheet line items where derivatives are recognized. Washington Gas 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 on the balance sheets. Balance Sheet Classification of Derivative Instruments (In millions) Gross amounts Gross amounts Netting of Net amounts December 31, 2020 Derivative assets (a) $ 17.8 $ (1.5) $ — $ 16.3 Derivative liabilities (b) (98.8) 1.5 1.6 $ (95.7) Net derivative assets (liabilities) $ (81.0) $ — $ 1.6 $ (79.4) December 31, 2019 Derivative assets (a) $ 13.0 $ 4.0 $ — $ 17.0 Derivative liabilities (b) (104.0) (4.0) 6.2 (101.8) Net derivative assets (liabilities) $ (91.0) $ — $ 6.2 $ (84.8) (a) Derivative assets at December 31, 2020 include $5.0 million recorded in "Current assets — Derivatives" and $11.3 million in" Deferred charges and other assets — Derivatives" on Washington Gas' balance sheets; Derivative assets at December 31, 2019 include $6.6 million recorded in "Current assets —Derivatives" and $10.4 million in" Deferred charges and other assets — Derivatives" on Washington Gas' balance sheets. (b) Derivative liabilities at December 31, 2020 include $7.1 million recorded in "Current liabilities — Derivatives " and $88.6 million recorded in " Deferred credits — Derivatives" on Washington Gas' balance sheets; Derivative liabilities at December 31, 2019 include $4.1 million recorded in "Current liabilities — Derivatives " and $97.7 million recorded in " Deferred credits — Derivatives" on Washington Gas' balance sheets. Gains and (Losses) on Derivatives The following table presents all gains and losses associated with derivative instruments. Gains and (Losses) on Derivative Instruments (In millions) Calendar Years Ended December 31, Three Months Ended December 31, Fiscal Year Ended September 30, 2020 2019 2018 2018 Recorded to income — Utility cost of gas $ 5.5 $ 5.5 $ (3.2) $ (2.1) Recorded to regulatory assets — Gas costs 0.3 14.0 $ (6.0) (7.6) Total $ 5.8 $ 19.5 $ (9.2) $ (9.7) Collateral Washington Gas 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 Washington Gas’ 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 sheets. Any collateral posted that is not offset against derivative assets and liabilities is included in “Other prepayments” on the balance sheets. Collateral received and not offset against derivative assets and liabilities is included in “Customer deposits and advance payments” on the accompanying balance sheets. At December 31, 2020 and 2019, Washington Gas had $2.8 million and $5.2 million, respectively, in collateral deposits posted with counterparties that are not offset against derivative asset and liabilities. At December 31, 2020 and 2019, Washington Gas had $0.2 million and $0.1 million, respectively, cash collateral held representing an obligation, and are not offset against derivative asset and liabilities. Certain derivative instruments of Washington Gas contain contract provisions that require collateral to be posted if the credit rating of Washington Gas falls below certain levels or if counterparty exposure to Washington Gas exceeds a certain level (credit-related contingent features). At December 31, 2020 and 2019, Washington Gas was not required to post collateral related to a derivative liability that contained a credit-related contingent feature. 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 December 31, 2020 and 2019, respectively. Potential Collateral Requirements for Derivative Liabilities (In millions) December 31, 2020 December 31, 2019 Derivative liabilities with credit-risk-contingent features $ 0.7 $ 0.4 Maximum potential collateral requirements 0.6 0.4 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 December 31, 2020, one counterparty represented over 10% of Washington Gas’ credit exposure to wholesale derivative counterparties for a total credit risk of $17.4 million. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS 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 sheets under ASC Topic 815 and short-term investments, other long-term receivable, 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 Washington Gas. 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. Included in this category are cash equivalents and rabbi trust investments in money market funds which are recorded on the balance sheets at fair value on a recurring basis. 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. 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. 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 and annualized volatilities of natural gas 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. 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. Our level 2 and level 3 derivatives are recorded on the balance sheets at fair value on a recurring basis. Other financial instruments including commercial paper, unsecured notes, and other long-term receivables are recorded on the balance sheets at amortized cost. The fair value of the long-term receivable from one of our trading partners related to the Antero contract approximates its carrying value using Level 2 input to estimate the credit loss associated with the receivable. The carrying cost of our commercial paper approximates fair value using Level 2 inputs. The fair value of Washington Gas unsecured notes was estimated based on valuation techniques using indirectly observable inputs corroborated with market data and therefore is classified as Level 2. Summary of Carrying Amounts and Fair value of Financial Instruments The following table summarizes the carrying amounts and fair value of financial assets and liabilities. 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. (In millions) Carrying Amount Level 1 Level 2 Level 3 Total At December 31, 2020 Financial assets Fair value through net income Cash equivalents (a) $ 3.2 $ 3.2 $ — $ — $ 3.2 Rabbi trust investments (b) 22.0 22.0 — — 22.0 Derivative asset - current 2.1 — 0.7 1.4 2.1 Derivative asset - deferred 4.5 — — 4.5 4.5 Fair value through regulatory assets/liabilities Derivative asset - current 2.9 — 0.9 2.0 2.9 Derivative asset - deferred 6.8 — — 6.8 6.8 Amortized cost Other long-term receivables (c) 1.4 — 1.4 — 1.4 Total Assets $ 42.9 $ 25.2 $ 3.0 $ 14.7 $ 42.9 Financial Liabilities Fair value through net income Derivative liabilities - current $ (0.4) $ — $ — $ (0.4) $ (0.4) Derivative liabilities - deferred (26.8) — — (26.8) (26.8) Fair value through regulatory assets/liabilities Derivative liabilities - current (6.7) — (0.3) (6.4) (6.7) Derivative liabilities - deferred (61.8) — (0.7) (61.1) (61.8) Amortized cost Commercial paper (d) (285.0) — (285.0) — (285.0) Unsecured notes (e) (1,446.9) — (1,779.8) — (1,779.8) Total Liabilities $ (1,827.6) $ — $ (2,065.8) $ (94.7) $ (2,160.5) (In millions) Carrying Amount Level 1 Level 2 Level 3 Total At December 31, 2019 Financial assets Fair value through net income Cash equivalents (a) $ 11.0 $ 11.0 $ — $ — $ 11.0 Rabbi trust investments (b) 44.1 44.1 — — 44.1 Derivative asset - current 2.6 — 0.1 2.5 2.6 Derivative asset - deferred 4.1 — 0.2 3.9 4.1 Fair value through regulatory assets/liabilities Derivative asset - current 4.0 — — 4.0 4.0 Derivative asset - deferred 6.3 — 0.3 6.0 6.3 Amortized cost Other long-term receivables (c) 1.3 — 1.3 — 1.3 Total Assets $ 73.4 $ 55.1 $ 1.9 $ 16.4 $ 73.4 Financial Liabilities Fair value through net income Derivative liabilities - current $ (0.7) $ — $ — $ (0.7) (0.7) Derivative liabilities - deferred (28.4) — — (28.4) (28.4) Fair value through regulatory assets/liabilities Derivative liabilities - current (3.4) — (0.6) (2.8) (3.4) Derivative liabilities - deferred (69.3) — — (69.3) (69.3) Amortized cost Commercial paper (d) (399.5) — (399.5) — (399.5) Unsecured notes (e) (1,330.9) — (1,480.8) — (1,480.8) Total Liabilities $ (1,832.2) $ — $ (1,880.9) $ (101.2) $ (1,982.1) (a) Cash equivalents represent the amounts invested in money market funds and were included in "Cash and cash equivalents" of the accompanying balance sheets. (b) Rabbi Trust investments are invested in money market funds. At December 31, 2020, carrying amount of $6.7 million and $15.3 million was included in "Current assets — Other" and "Deferred charges and other assets — Other" of the accompanying balance sheets, respectively; At December 31, 2019, carrying amount of $19.5 million and $24.6 million was included in "Current assets — Other" and "Deferred charges and other assets — Other", respectively. (c) Amount represents a long-term receivable from one of our trading partners related to the Antero contract discussed in Note 13 — Commitments and Contingencies. The carrying amount represents the long-term receivable net of allowance for doubtful accounts. (d) The balance at December 31, 2020 includes $185.0 million located in "Notes payable", and $100.0 million located in “Long-term debt” on the accompanying balance sheets. The balance at December 31, 2019 includes $299.5 million located in "Notes payable", and $100.0 million located in “Long-term debt” on the accompanying balance sheets. (e) Includes adjustments for current maturities and unamortized discounts, as applicable. The amount was included in "Long-term debt" on the accompanying balance sheets. Quantitative Information About Unobservable Inputs 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. Quantitative Information about Level 3 Fair Value Measurements (In millions) Net Fair Value Valuation Techniques Unobservable Inputs Weighted Average (a) Range December 31, 2020 ($80.0) Discounted Cash Flow Natural Gas Basis Price (per dekatherm) (0.36) ($0.910)-$2.073 December 31, 2019 ($84.8) Discounted Cash Flow Natural Gas Basis Price (per dekatherm) n/a ($0.905)-$2.523 (a) ASU 2018-13 has been applied prospectively, beginning with the interim period ending March 31, 2020. The average level 3 price was weighted by transaction volume. Reconciliation of Level 3 Assets and Liabilities The following table presents a reconciliation of changes in net fair value of Level 3 derivative instruments measured at fair value on a recurring basis. Reconciliation of Fair Value Measurements Using Significant Level 3 Inputs (In millions) Calendar Years Three Months Fiscal Year 2020 2019 2018 2018 Balance at beginning of period $ (84.8) $ (106.6) $ (94.1) $ (122.6) Realized and unrealized gains (losses) Recorded to income-Utility cost of gas 4.1 7.2 (4.4) (4.5) Recorded to regulatory assets—gas costs (1.2) 17.8 (5.8) (10.0) Transfers into Level 3 — (6.7) — (6.9) Transfers out of Level 3 1.3 7.9 — 8.9 Settlements 0.6 (4.4) (2.3) 41.0 Balance at end of period $ (80.0) $ (84.8) $ (106.6) $ (94.1) 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. Transfers out of Level 3 were due to valuations that experienced an increase in observable market inputs. Transfers into Level 3 were due to an increase in unobservable market inputs, primarily pricing points. All amounts recorded to income are from the utility cost of gas. The following table presents the unrealized gains (losses) attributable to Level 3 derivative instruments measured at fair value on a recurring basis. Unrealized Gains (Losses) Recorded for Level 3 Measurements (In millions) Calendar Years Three Months Fiscal Year 2020 2019 2018 2018 Recorded to income — Utility cost of gas $ 6.7 $ 9.9 $ (4.0) $ 2.3 Recorded to regulatory assets — Gas costs 7.2 21.6 (5.3) 0.2 Total $ 13.9 $ 31.5 $ (9.3) $ 2.5 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS Corporate Service Allocation As a subsidiary of AltaGas, Washington Gas 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 at the lower of cost or market, and Washington Gas in turn allocates a portion of the costs to WGL’s other subsidiaries at the higher of cost or market. Washington Gas records a payable for the total shared service costs allocated to all of WGL's subsidiaries in "Payable to associated companies" and a receivable for the shared service costs allocated to WGL’s other subsidiaries in “Receivables from associated companies” on the balance sheets. Additionally, effective upon the approval by the SCC of Virginia in March 2020, Washington Gas began receiving certain corporate services from SEMCO Energy, Inc., (SEMCO), a subsidiary of AltaGas. Washington Gas records in "Payable to associated companies" on its balance sheets for the services provided by SEMCO. The expenses associated with services provided by AltaGas and SEMCO are recorded to “Operation and maintenance” on Washington Gas' statements of operations. The net expenses of $19.7 million, $18.2 million and $4.5 million were included in “Operation and maintenance” on the statements of operations for the calendar year ended December 31, 2020 and 2019, and three months ended December 31, 2018, respectively, reflecting the corporate service cost allocated to Washington Gas. In addition, Washington Gas provides accounting, treasury, legal and other administrative and general support to WGL’s subsidiaries and various AltaGas U.S. entities, and files consolidated tax returns that include affiliated taxable transactions. Washington Gas bills affiliates to which it provides services 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. Project Financing WGL Energy Systems obtains third-party project financing for energy management services projects with the federal government under Washington Gas’ area-wide contract. As work is performed, Washington Gas establishes a contract asset in “Receivables” representing the government’s obligation to remit principal and interest and records a “Payable to associated company” to WGL Energy Systems for the construction work performed for the same amount. At December 31, 2020, Washington Gas recorded $16.1 million of contract assets in "Receivables” and a $16.1 million payable to WGL Energy Systems in “Payables to associated companies,” respectively, for energy management services projects financed by WGL Energy Systems that were not complete. At December 31, 2019, Washington Gas recorded $44.2 million of contract assets in “Receivables” and a $44.2 million payable to WGL Energy Systems in “Payables to associated companies,” respectively, for energy management services projects financed by WGL Energy Systems that were not complete. In October 2018, WGL Energy Systems repaid $53.0 million historically drawn by Washington Gas from a third-party lender for Washington Gas' area-wide contract that the lender demanded repayment for due to delays in achieving final acceptance from the federal government agency customer. The $53.0 million was included in "Payables to associated companies" on Washington Gas' balance sheets at December 31, 2018. In February 2019, WGL sold the contract asset, and accordingly, Washington Gas reversed the associated amount in “Payables to associated companies” and “Receivables” on its balance sheets during the quarter ended March 31. 2019. Related Party Transactions with Hampshire Hampshire Gas Company (Hampshire), a wholly owned subsidiary of WGL, owns full and partial interests in underground natural gas storage facilities, including pipeline delivery facilities located in and around Hampshire County, West Virginia, and operates those facilities to serve Washington Gas, which purchases all of the storage services of Hampshire. Washington Gas includes the cost of these services in the bills sent to its customers and records the cost of the services in "Operation and maintenance" in its statements of operations. Hampshire operates under a “pass-through” cost of service-based tariff approved by the FERC and adjusts its billing rates to Washington Gas on a periodic basis to account for changes in its investment in utility plant and associated expenses. The arrangement between Hampshire and Washington Gas is classified as an operating lease. A right-of-use (ROU) asset and lease liability was not recognized upon the adoption of ASC 842 because all the costs associated with the arrangement are variable. Washington Gas recorded expenses related to the cost of services provided by Hampshire in "Operation and maintenance " on Washington Gas' statements of operations of $8.2 million and $7.4 million, $1.7 million and $6.9 million for the calendar year ended December 31, 2020 and 2019, three months ended December 31, 2018 and fiscal year ended September 30, 2018, respectively. The outstanding balance not cleared between Washington Gas and Hampshire at the end of the reporting period was recorded in "Payable to associated companies" of Washington Gas' balance sheets. Other Related Party Transactions 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 sheet. 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 in "Operating revenue" of its statements of operations for these balancing services pursuant to tariffs approved by the appropriate regulatory bodies. The following table shows the amounts Washington Gas charged WGL Energy Services for balancing services. Washington Gas - Gas Balancing Service Charges (In millions) Calendar Years Ended Three Month Ended Fiscal Year Ended 2020 2019 2018 2018 Gas balancing service charge $ 16.6 $ 20.0 $ 4.6 $ 18.5 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. Washington Gas recorded $2.0 million receivable from and $2.1 million payable to WGL Energy Services at December 31, 2020 and 2019, respectively, related to an imbalance in gas volumes. The receivable and payable are recorded in "Accounts receivable" and "Accounts payable and other accrued liabilities" on Washington Gas' balance sheet. Refer to Note 1— Accounting Policies of the Notes to Financial Statements for further discussion of these imbalance transactions. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) (AOCI) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)(AOCI) The following table shows the changes in accumulated other comprehensive income (loss) for Washington Gas by component. Changes in Accumulated Other Comprehensive Income (Loss) by Component Calendar Years Three Months Fiscal Year (In thousands) 2020 2019 2018 2018 Beginning Balance $ 4,576 $ (7,106) $ (2,380) $ (4,911) Amortization of prior service credit (a)(b) (1,493) (649) (226) (675) Amortization of actuarial loss (a)(b)(c) 2,129 1,787 447 1,487 Actuarial gain (loss) arising during the period (a) (4,736) 14,672 (6,597) 4,620 Current-period other comprehensive income (loss) (4,100) 15,810 (6,376) 5,432 Income tax expense (benefit) related to pension and other post-retirement benefit plans (c) (1,101) 4,128 (1,650) 2,901 Ending Balance $ 1,577 $ 4,576 $ (7,106) $ (2,380) '(a) These accumulated other comprehensive income (loss) components are included in the computation of net periodic benefit cost. Refer to Note 10 — Pension and other post-retirement benefit plans for additional details. (b) Amortization of prior service cost and amortization of actuarial gain (loss) represent the amounts reclassified out of AOCI to “Other income (expense)” of statements of operations for the reported periods. (c) In the third quarter of 2020, Washington Gas made a voluntary change in accounting principle for calculating the MRVA used in the determination of net periodic pension and other post-retirement benefit plan costs. We retrospectively applied this change in accounting principle to all applicable prior period financial information presented herein as required.. Refer to Note 1 — Accounting Policies for further discussion. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | SUPPLEMENTAL CASH FLOW INFORMATION The following table details 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. Calendar Years Three Months Fiscal Year (In thousands) 2020 2019 2018 2018 CHANGES IN OPERATING ASSETS AND LIABILITIES Receivables $ 9,288 $ (16,494) $ (222,098) $ (13,557) (Receivables from) payables to associated companies — net (116,703) (7,362) 18,788 (43,161) Gas costs and other regulatory assets/liabilities — net (54,684) 26,374 40,028 27,994 Storage gas 17,395 15,952 (2,550) (8,626) Prepaid taxes 11,029 (7,383) (9,461) 5,618 Accounts payable and other accrued liabilities (11,014) (56,925) 61,029 18,378 Customer deposits and advance payments (1,309) (14,318) (29,288) 19,464 Accrued taxes 2,856 (4,670) 1,024 14,619 Other current assets 5,575 (13,591) (28) (14,605) Other current liabilities 1,424 (2,474) (121) 154 Deferred gas costs — net (16,764) 33,044 (51,936) (8,306) Deferred assets — other (16,911) 4,981 483 (5,895) Deferred liabilities — other 76,918 (28,004) (7,072) (20,606) Pension and other post-retirement benefits (19,030) (15,677) (638) (14,521) Changes in operating assets and liabilities $ (111,930) $ (86,547) $ (201,840) $ (43,050) SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION (a) Income taxes paid (refunded) — net $ (2,880) $ 15,623 $ 3,782 $ (2,983) Interest paid including interest for finance leases $ 62,883 $ 57,922 $ 4,982 $ 57,036 SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING ACTIVITIES (a) Extinguishment of project debt financing $ — $ (15,460) $ (53,018) $ (28,312) Capital expenditure accruals included in accounts payable and other accrued liabilities $ 74,121 $ 26,590 $ 33,245 $ 53,367 (a) Refer to Note 4 — Leases for additional supplemental cash flow disclosure related to leases. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within Washington Gas’ balance sheets that sums to the total of such amounts shown on the statements of cash flows. (In thousands) December 31, September 30, 2020 2019 2018 2018 Cash and cash equivalents $ 1 $ 17,069 $ 6,082 $ 1 Restricted cash included in Current assets — Other 6,673 19,464 20,207 20,207 Restricted cash included in Deferred charges and other assets — Other 15,288 24,615 45,134 44,775 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 21,962 $ 61,148 $ 71,423 $ 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. 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 were invested in money market funds at December 31, 2020, 2019 and 2018, and September 30, 2018. Refer to Note 10 — Pension and Other Post-Retirement Benefit Plans for further discussion of rabbi trusts. |
Comparative Data
Comparative Data | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Comparative Data | COMPARATIVE DATA The following table presents financial information for the calendar years ended December 31, 2020, 2019 and 2018 and three months ended December 31, 2018 and 2017. Due to the change in accounting principle we made during the third quarter of 2020, we retrospectively applied the change in accounting principle to all applicable prior period financial information presented herein as required. Refer to Note 1 — Accounting Policies for further discussion. (In thousands) Calendar Years Ended Three Months Ended 2020 2019 2018 2018 2017 OPERATING REVENUES $ 1,234,315 $ 1,330,651 $ 1,272,694 $ 402,101 $ 377,470 OPERATING EXPENSES Utility cost of gas 328,244 461,574 438,939 156,641 124,745 Operation and maintenance 399,498 404,961 564,536 102,728 82,372 Depreciation and amortization 145,585 142,565 136,373 34,948 33,646 General taxes and other assessments 152,654 149,618 146,747 38,552 39,983 Total Operating Expenses 1,025,981 1,158,718 1,286,595 332,869 280,746 OPERATING INCOME 208,334 171,933 (13,901) 69,232 96,724 Other income (expense) — net 21,737 5,822 (4,052) 2,045 1,870 Interest expense 65,352 62,567 59,237 15,706 14,973 INCOME (LOSS) BEFORE INCOME TAXES 164,719 115,188 (77,190) 55,571 83,621 INCOME TAX EXPENSE (BENEFIT) 32,844 18,083 (42,591) 7,471 25,072 NET INCOME (LOSS) $ 131,875 $ 97,105 $ (34,599) $ 48,100 $ 58,549 Loss on preferred stock extinguishment — 556 — — — Dividends on preferred stock — 1,169 1,320 330 330 NET INCOME (LOSS) APPLICABLE TO COMMON STOCK $ 131,875 $ 95,380 $ (35,919) $ 47,770 $ 58,219 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. During the third quarter of 2020, Washington Gas made a voluntary change in accounting principle for calculating the MRVA used in the determination of net periodic pension and other post-retirement benefit plan costs. We retrospectively applied the change in accounting principle to all applicable prior period financial information presented herein as required. The change in accounting principle increased both the net income (loss) and net income (loss) applicable to common stock of $1.7 million for each of the first, second, and third quarters in 2020, and $2.0 million for the fourth quarter of 2020. The change in accounting principle decreased both the net income (loss) and net income (loss) applicable to common stock of $0.7 million for each of the four quarters in 2019. Refer to Note 1 — Accounting Policies for further discussion. (In thousands) Quarters Ended March 31 June 30 September 30 December 31 2020 Operating revenues $ 501,735 $ 211,166 $ 143,383 $ 378,031 Operating income (loss) $ 171,167 $ (10,632) $ (35,928) $ 83,727 Net income (loss) $ 127,759 $ (14,600) $ (36,622) $ 55,338 Net income (loss) applicable to common stock $ 127,759 $ (14,600) $ (36,622) $ 55,338 2019 Operating revenues $ 593,653 $ 198,484 $ 122,305 $ 416,209 Operating income (loss) $ 152,580 $ (10,138) $ (73,050) $ 102,541 Net income (loss) $ 112,319 $ (21,268) $ (66,476) $ 72,530 Net income (loss) applicable to common stock $ 111,989 $ (21,598) $ (66,476) $ 71,465 |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | COMPARATIVE DATA The following table presents financial information for the calendar years ended December 31, 2020, 2019 and 2018 and three months ended December 31, 2018 and 2017. Due to the change in accounting principle we made during the third quarter of 2020, we retrospectively applied the change in accounting principle to all applicable prior period financial information presented herein as required. Refer to Note 1 — Accounting Policies for further discussion. (In thousands) Calendar Years Ended Three Months Ended 2020 2019 2018 2018 2017 OPERATING REVENUES $ 1,234,315 $ 1,330,651 $ 1,272,694 $ 402,101 $ 377,470 OPERATING EXPENSES Utility cost of gas 328,244 461,574 438,939 156,641 124,745 Operation and maintenance 399,498 404,961 564,536 102,728 82,372 Depreciation and amortization 145,585 142,565 136,373 34,948 33,646 General taxes and other assessments 152,654 149,618 146,747 38,552 39,983 Total Operating Expenses 1,025,981 1,158,718 1,286,595 332,869 280,746 OPERATING INCOME 208,334 171,933 (13,901) 69,232 96,724 Other income (expense) — net 21,737 5,822 (4,052) 2,045 1,870 Interest expense 65,352 62,567 59,237 15,706 14,973 INCOME (LOSS) BEFORE INCOME TAXES 164,719 115,188 (77,190) 55,571 83,621 INCOME TAX EXPENSE (BENEFIT) 32,844 18,083 (42,591) 7,471 25,072 NET INCOME (LOSS) $ 131,875 $ 97,105 $ (34,599) $ 48,100 $ 58,549 Loss on preferred stock extinguishment — 556 — — — Dividends on preferred stock — 1,169 1,320 330 330 NET INCOME (LOSS) APPLICABLE TO COMMON STOCK $ 131,875 $ 95,380 $ (35,919) $ 47,770 $ 58,219 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. During the third quarter of 2020, Washington Gas made a voluntary change in accounting principle for calculating the MRVA used in the determination of net periodic pension and other post-retirement benefit plan costs. We retrospectively applied the change in accounting principle to all applicable prior period financial information presented herein as required. The change in accounting principle increased both the net income (loss) and net income (loss) applicable to common stock of $1.7 million for each of the first, second, and third quarters in 2020, and $2.0 million for the fourth quarter of 2020. The change in accounting principle decreased both the net income (loss) and net income (loss) applicable to common stock of $0.7 million for each of the four quarters in 2019. Refer to Note 1 — Accounting Policies for further discussion. (In thousands) Quarters Ended March 31 June 30 September 30 December 31 2020 Operating revenues $ 501,735 $ 211,166 $ 143,383 $ 378,031 Operating income (loss) $ 171,167 $ (10,632) $ (35,928) $ 83,727 Net income (loss) $ 127,759 $ (14,600) $ (36,622) $ 55,338 Net income (loss) applicable to common stock $ 127,759 $ (14,600) $ (36,622) $ 55,338 2019 Operating revenues $ 593,653 $ 198,484 $ 122,305 $ 416,209 Operating income (loss) $ 152,580 $ (10,138) $ (73,050) $ 102,541 Net income (loss) $ 112,319 $ (21,268) $ (66,476) $ 72,530 Net income (loss) applicable to common stock $ 111,989 $ (21,598) $ (66,476) $ 71,465 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts and Reserves | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts and Reserves | Schedule II—Valuation and Qualifying Accounts and Reserves Calendar Years Ended December 31, 2020 and 2019, Three Months Ended December 31, 2018, and Fiscal Year Ended September 30, 2018 Balance at Additions Charged To Balance at Beginning Costs and Other End of (In thousands) of Period Expenses (a) Accounts (b) Deductions (c) Period Calendar Year Ended December 31, 2020 Valuation and Qualifying Accounts $ 18,708 $ 22,005 $ 3,628 $ 16,936 $ 27,405 Calendar Year Ended December 31, 2019 Valuation and Qualifying Accounts $ 29,461 $ 16,572 $ 2,565 $ 29,890 $ 18,708 Three Months Ended December 31, 2018 Valuation and Qualifying Accounts $ 29,622 $ 5,902 $ 581 $ 6,644 $ 29,461 Fiscal Year Ended September 30, 2018 Valuation and Qualifying Accounts $ 23,741 $ 19,946 $ 1,409 $ 15,474 $ 29,622 (a) Represent the amount of bad debt expense recorded to the income statement. The amount in 2020 also included $6.3 million recorded to regulatory asset for COVID-19 related costs. (b) Recoveries on receivables previously written off as uncollectible and unclaimed customer deposits, overpayments, etc. (c) Includes deductions for accounts charged-off. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Consolidation | The Financial Statements of Washington Gas have been prepared in conformity with GAAP and under the rules of the Securities and Exchange Commission (SEC). |
Use of Estimates | 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. |
Property, Plant and Equipment | Property, plant and equipment 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. AFUDC equity is reported on the statements of operations as non-cash income in "Other income (expense)". AFUDC debt is reported as a non-cash offset to interest expense. After construction is completed, the Company is permitted to recover these costs through inclusion in rate base and the corresponding subsequent depreciation or amortization of those regulated assets. Costs of replacement and betterments that extend the useful life of property, plant, and equipment are also capitalized. The cost of maintenance and repairs, which do not extend the useful life or increase the expected output of the asset, are expensed as incurred. Depreciation applicable to utility gas plant in service primarily uses 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. Washington Gas periodically reviews the adequacy of its depreciation rates by considering estimated remaining lives and other factors. |
Impairment of Long-Lived Assets | Management regularly reviews property and equipment and other long-lived assets for possible impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. For property 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 a 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 asset, using assumptions about future cash inflows and outflows over the life of an asset. |
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 and are not available for general use by the Company. 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, rabbi trust funds were funded to satisfy certain executives and outside director retirement benefit plan obligations. The rabbi trust funds are invested in money market funds which are considered 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” and current liabilities are classified in “Current Assets-Other” on Washington Gas’ balance sheets. |
Receivables and Allowance for Doubtful Accounts | Receivables are recorded net of allowance for doubtful accounts. Washington Gas estimates its bad debt expense based on current sales and establishes the allowance. Periodically, Washington Gas evaluates the reasonableness of the allowance utilizing a variety of factors including historical payment and collection experience, current economic conditions, receivable aging, and the financial health of its customers. If the financial condition of its customers deteriorates or other circumstances occur that impact the customers’ ability or desire to make payments, Washington Gas considers these factors in its evaluation of the adequacy of the allowance. Accounts are written off to the allowance when collection efforts are complete and future recovery is unlikely. Refer to Note 2 — Credit Losses for further discussion of allowance for doubtful accounts. |
Regulatory Assets and Liabilities | Washington Gas accounts for its regulated operations in accordance with ASC Topic 980, Regulated Operations (ASC Topic 980), which results in differences in the application of GAAP between regulated and unregulated businesses. ASC Topic 980 requires recording regulatory assets or liabilities for certain transactions that would have been treated as expense or revenue in unregulated businesses. Washington Gas defers the recognition of an incurred cost and records a regulatory asset when it is probable that these costs will be recovered in future rates. Washington Gas defers the recognition of revenue and records a regulatory liability when it is probable that it will refund an amount previously collected from customers or refund a gain to customers. Additionally, Washington Gas records a regulatory liability when a regulator provides current rates intended to recover costs that will be incurred in the future. Future regulatory changes or changes in the competitive environment could result in WGL discontinuing the application of ASC Topic 980 for some of its business and require the write-off of the portion of any regulatory asset or liability for which recovery or refund is no longer probable. If Washington Gas were required to discontinue the application of ASC Topic 980 for any of its operations, it would record a non-cash charge or credit to income for the net book value of its regulatory assets and liabilities. Other adjustments might also be required. The current regulatory environment and Washington Gas’ specific facts and circumstances support both the continued application of ASC Topic 980 for our regulatory activities and the conclusion that all of our regulatory assets and liabilities as of December 31, 2020 are recoverable or refundable through rates charged to customers. See Note 5 — Regulated Operations for further discussion of our regulated operations. |
Leases | We determine if an arrangement is a lease and the lease classification at inception. Washington Gas has operating leases for our corporate headquarters and other corporate offices, communication tower space, and certain office equipment. Operating leases are included in "Operating lease right-of-use (ROU) assets", "Current liabilities-Operating lease liability", and "Deferred credits-Operating lease liability". The Company also has leases of vehicles which are classified as finance leases. Finance leases are included in "Property, Plant and Equipment", "Current liabilities-Other", and "Long -term debt" on the balance sheets. ROU assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. For the operating leases in which we are the lessee, a ROU asset and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. We use the rate implicit in the lease to determine the present value of the lease payments when the rate is readily determinable or we use our incremental borrowing rate. Our ROU assets are adjusted for lease incentives, any lease payments made in advance, and initial direct costs incurred. Lease expenses are recognized on a straight-line basis over the lease term. The estimated lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. For our lessee building and certain equipment leases, we do not separate the lease and non-lease components. Variable lease payments are recognized as lease expense when the related facts and circumstances occur, and are dependent on various external factors, including real estate taxes, common area maintenance and usage charges. The Company has elected not to record a ROU asset and lease liability for short-term leases. Short-term leases are defined as leases with a term of 12 months or less at the commencement date, including extension options that are reasonably certain of being exercised, and do not include an option to purchase the underlying asset. For our multiple office location leases classified as operating leases, the lease term begins on the date when construction of the leasehold improvements can start and the lessor has allowed us to occupy the respective locations. Leasehold improvement costs are classified as “Property, Plant, and Equipment” on the balance sheet, and are being amortized to “Depreciation and amortization” expense on a straight-line basis over the non-cancelable period of the leases. |
Leases | The Company also has lessor leases for land, office space and communication tower space that are classified as operating leases. Lease payments under operating leases are recognized on a straight-line basis over the lease term. |
Revenue and Cost of Gas Recognition | Revenues. Washington Gas generally recognizes revenue from contracts with customers when natural gas is delivered. 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. Refer to Note 3 — Revenue from Contracts with Customers |
Revenue Recognition for Alternative Revenue Programs, Policy | Alternative Revenue Programs. Certain ratemaking mechanisms of Washington Gas qualify as alternative revenue programs in accordance with ASC Topic 980, if (i) the program is established by an order from a regulatory commission and allows for automatic adjustment of future rates, (ii) additional program revenues (above those amounts currently reflected in base rates) are objectively determinable and probable of recovery, and (iii) the collection of the additional revenues is allowed within 24 months of the end of the period in which they were recognized. The Company has determined that its RNA, WNA and CRA billing adjustment mechanisms and APRPs are alternative revenue programs. Alternative revenue program revenues represent the initial recognition of revenue related to these programs. When amounts are billed and collected from customers through rates, the amounts are recorded as a recovery of the associated regulatory asset or liability. |
Cost of Gas/Revenue Taxes | 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. |
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 because of the imbalance. The regulatory treatment combines the imbalance for all marketers, including our affiliate WGL Energy Services, into a single “net” adjustment to the regulatory asset or liability. |
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 outline how the profits from these transactions should be shared with Washington Gas’ customers.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 statements of operations or, in the case of amounts to be shared with rate payers, regulatory assets/liabilities on the balance sheets. |
Materials, Supplies and Storage Gas | Washington Gas values materials, supplies and storage gas using a weighted-average cost method. These materials, supplies and storage gas are carried at the lower of weighted-average cost or net realizable value. 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 year. In general, commodity costs and variable transportation costs are capitalized as gas in underground storage. Fixed costs, primarily pipeline demand charges and storage charges, are expensed as incurred through the cost of gas. |
Derivatives Activities | 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 fair value changes of 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 operations in “Utility cost of gas”. 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. Washington Gas has a collaborative arrangement with a third party to facilitate the asset optimization program. The collaborative arrangement allocates a tiered percentage of profits or losses to the third party as compensation for its participation. The costs recorded by Washington Gas related to the collaborative arrangement totaled $8.6 million, $6.0 million, $2.1 million, and $9.5 million for the calendar years ended December 31, 2020 and 2019, the three months ended December 31, 2018, and fiscal year ended September 30, 2018, respectively. These amounts were recorded in “Utility cost of gas” on Washington Gas’ statements of operations. Either party may terminate the collaborative arrangement through the delivery of a termination notice. In such an event, Washington Gas may make a payment upon termination. |
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 computed on a separate company basis. 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 5 — Regulated Operations |
Stock-Based Compensation | We account for stock-based compensation expense in accordance with ASC Topic 718, Compensation-Stock Compensation, or ASC Topic 710, Compensation - General for certain awards that do not meet the definition of a stock-based award under ASC 718. All outstanding awards at December 31, 2020 and 2019 are liability-classified share-based awards.We recognize stock-based compensation expense based on their fair value at the end of each reporting period. Compensation expense for awards subject to ASC 710 is recognized based on the probable outcome of the award at the end of each reporting period. For all 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. 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. |
Dividend Restrictions | Generally, Washington Gas can make dividend payments in the ordinary course of business unless any of the following regulatory limitations apply: (i) Washington Gas will not pay extraordinary dividends to its parent for three years after the Merger Close, (ii) Washington Gas will not pay dividends to its parent company if Washington Gas' senior unsecured debt rating is below investment grade or (iii) Washington Gas will not make a dividend payment to its parent company if the payment would result in its equity level to drop below 48%, We had no significant restrictions on our cash balances or retained earnings that would affect the payment of dividends during the reported periods. |
New Accounting Pronouncements | The following tables represent accounting standards adopted by Washington Gas during the calendar year ended December 31, 2020, and other newly issued accounting standards that will be adopted by Washington Gas in the future. ACCOUNTING STANDARDS ADOPTED IN CALENDAR YEAR 2020 Standard Description Date of adoption Effect on the financial statements or other significant matters ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, including other subsequent ASUs further amending and clarifying the guidance. For credit losses on financial instruments measured at amortized cost, 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. In addition, entities may make a one-time irrevocable election on certain eligible financial instruments to elect fair value treatment on an instrument-by-instrument basis. January 1, 2020 Cash equivalents, accounts receivable, unbilled revenue, and contract assets are within the scope of the new standard. Upon adoption, we recorded an increase to our allowance for doubtful accounts and a reduction to retained earnings of $1.5 million. See Note 2 - Credit Losses for further information and the new required disclosures. 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. January 1, 2020 The adoption of this standard did not have a material effect on our financial statements. ASU 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606 Topic 808 does not provide comprehensive recognition or measurement guidance for collaborative arrangements. This update clarifies the interaction between Topic 606, Revenue from Contracts with Customers and Topic 808. January 1, 2020 The adoption of this standard did not have a material effect on our financial statements. ASU 2019-01, Leases (Topic 842) Codification Improvements This update addresses the determination of the fair value of the underlying asset by lessors that are not manufacturers or dealers, provides guidance for the presentation of the statement of cash flows for sales-type and direct financing leases, and clarifies transition disclosures related to the adoption of ASC 842. January 1, 2020 The adoption of this standard did not have a material effect on our financial statements. ASU 2019-04, Codification Improvements to Topic 326, Financial The amendments in this ASU provide clarification and improve the codification in recently issued accounting standards. January 1, 2020 The adoption of this standard did not have a material effect on our financial statements. ASU 2020-03, Codification Improvements to Financial Instruments This Update makes technical corrections and minor improvements to the guidance on financial instruments. January 1, 2020 The adoption of this standard did not have a material effect on our financial statements. 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. Early adoption is permitted. December 31, 2020 We have updated certain disclosures following the requirements in Note 10 - Pension and Other Post- retirement Benefit Plans. OTHER NEWLY ISSUED ACCOUNTING STANDARDS Standard Description Required date of adoption Effect on the financial statements or other significant matters ASU 2019-12, Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes As part of FASB's Simplification Initiative, this standard amends ASC Topic 740 by removing certain exceptions to the general principles and clarifying and amending other current guidance. Early adoption is permitted. January 1, 2021 It is not expected that the adoption of this standard will have a material effect on our financial statements. ASU 2020-04, Reference Rate Reform (Topic 848) Facilitation of the Effects of Reference Rate Reform on Financial Reporting This standard provides optional expedients and exceptions to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. The amendments may be elected prospectively to contract modifications made and to hedging relationships existing as of or entered into on or after the date of adoption and through December 31, 2022. December 31, 2022 We have not yet elected to adopt this ASU as of December 31, 2020 and are assessing the impact the adoption of this standard will have on our financial statements. |
Asset Retirement Obligation and Environmental Cost | 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 manufactured gas plants (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. |
Concentration Risk, Credit Risk, Policy | 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. |
Fair Value Measurement | 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 sheets under ASC Topic 815 and short-term investments, other long-term receivable, 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 Washington Gas. 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. Included in this category are cash equivalents and rabbi trust investments in money market funds which are recorded on the balance sheets at fair value on a recurring basis. 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. 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. 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 and annualized volatilities of natural gas 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. 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. Our level 2 and level 3 derivatives are recorded on the balance sheets at fair value on a recurring basis. Other financial instruments including commercial paper, unsecured notes, and other long-term receivables are recorded on the balance sheets at amortized cost. The fair value of the long-term receivable from one of our trading partners related to the Antero contract approximates its carrying value using Level 2 input to estimate the credit loss associated with the receivable. The carrying cost of our commercial paper approximates fair value using Level 2 inputs. The fair value of Washington Gas unsecured notes was estimated based on valuation techniques using indirectly observable inputs corroborated with market data and therefore is classified as Level 2. |
Revenue from Contract with Customer | The Company recognizes revenue from contracts with customers to depict the transfer of goods or services to customers at an amount it expects to be entitled to in exchange for those goods or services. Washington Gas sells natural gas and distribution services to residential, commercial, industrial and governmental customers through regulated tariff rates approved by regulatory commissions in the jurisdictions where it operates. Customers are billed monthly based on regular meter readings. Customer billings are based on two main components: (i) a fixed service fee and (ii) a variable fee based on usage. For customers who choose to purchase their natural gas from Washington Gas, the bill will include a usage-based charge for the cost of the commodity. Revenue is recognized over time as natural gas is delivered or as service is performed. Since meter readings are performed on a cycle basis, Washington Gas recognizes accrued revenue for any services rendered to its customers but not billed at month-end. The tariff sales are generally considered daily or “at-will” contracts as customers may cancel their service at any time (subject to notification requirements in the tariff), and revenue generally represents the amount Washington Gas is entitled to invoice. There are certain contracts that have terms of one year or longer. For these contracts, revenue is recognized based on the amount Washington Gas is entitled to bill the customer. Customers have the choice to purchase natural gas from competitive service providers. Washington Gas charges the competitive service providers balancing fees to manage the natural gas transportation imbalances. Where regulations require, Washington Gas issues customers a consolidated bill to include the natural gas supplied by the competitive service providers and distribution of natural gas. Washington Gas recognizes revenue only for distribution services that it has provided to the customer, and the balancing fees for the services provided to the competitive service provider. The following table disaggregates revenue by type of service for the periods. |
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 statements of operations 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. |
Debt | Washington Gas satisfies the short-term financing requirements through the sale of commercial paper, or through bank borrowings. Due to the seasonal nature of our operations, 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 Washington Gas is to maintain bank credit facilities in amounts equal to or greater than the expected maximum commercial paper position. |
Accounting Policies (Tables)
Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Accounting standards adopted in the current fiscal year | The following Notes have been impacted by the change: Note 5 — Regulated Operations , Note 9 — Income Taxes , Note 10 — Pension and Other Post — Retirement Benefit Plans, Note 17 — Accumulated Other Comprehensive Income (Loss), Note 19 — Comparative Data, and Note 20 — Quarterly Financial Information. December 31, 2020 December 31, 2019 (In thousands) Without Change Adjustment As Reported (with change) As Previously Reported Adjustment As Adjusted Balance Sheets Regulatory assets — Pension and other post-retirement benefits $ (6,539) $ 10,419 $ 3,880 $ 39,435 $ 4,643 $ 44,078 Common shareholder’s equity $ 1,843,211 $ 12,714 $ 1,855,925 $ 1,572,196 $ 6,396 $ 1,578,592 Regulatory liabilities — Pension and other post-retirement benefits $ 269,181 $ (6,770) $ 262,411 $ 199,665 $ (3,995) $ 195,670 Deferred income taxes $ 652,401 $ 4,475 $ 656,876 $ 462,475 $ 2,242 $ 464,717 Calendar Year Ended Calendar Year Ended (In thousands) Without Change Adjustment As Reported (with change) As Previously Reported Adjustment As Adjusted Statements of Operations Other income (expense) — net $ 12,195 $ 9,542 $ 21,737 $ 9,478 $ (3,656) $ 5,822 Income tax expense (benefit) $ 30,367 $ 2,477 $ 32,844 $ 19,032 $ (949) $ 18,083 Net income $ 124,810 $ 7,065 $ 131,875 $ 99,812 $ (2,707) $ 97,105 Statements of Comprehensive Income Other comprehensive income (loss), net of taxes $ (2,252) $ (747) $ (2,999) $ 11,536 $ 146 $ 11,682 Comprehensive income $ 122,558 $ 6,318 $ 128,876 $ 111,348 $ (2,561) $ 108,787 Condensed Statements of Cash Flows Net income $ 124,810 $ 7,065 $ 131,875 $ 99,812 $ (2,707) $ 97,105 ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES Accrued/deferred pension and other post-retirement benefit cost (benefit) $ 1,142 $ (9,542) $ (8,400) $ (1,466) $ 3,656 $ 2,190 Deferred income taxes — net $ 39,048 $ 2,477 $ 41,525 $ 19,690 $ (949) $ 18,741 Three Months Ended Fiscal Year Ended (In thousands) As Previously Reported Adjustment As Adjusted As Previously Reported Adjustment As Adjusted Statements of Operations Other income (expense) — net $ 3,494 $ (1,449) $ 2,045 $ (7,592) $ 3,366 $ (4,226) Income tax expense (benefit) $ 7,847 $ (376) $ 7,471 $ (25,863) $ 874 $ (24,989) Net income (loss) $ 49,173 $ (1,073) $ 48,100 $ (26,642) $ 2,492 $ (24,150) Statements of Comprehensive Income Other comprehensive income (loss), net of taxes $ (4,797) $ 71 $ (4,726) $ 2,692 $ (161) $ 2,531 Comprehensive income (loss) $ 44,376 $ (1,002) $ 43,374 $ (23,950) $ 2,331 $ (21,619) Condensed Statements of Cash Flows Net income $ 49,173 $ (1,073) $ 48,100 $ (26,642) $ 2,492 $ (24,150) ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES Accrued/deferred pension and other post-retirement benefit cost (benefit) $ (330) $ 1,449 $ 1,119 $ 11,127 $ (3,366) $ 7,761 Deferred income taxes — net $ 8,012 $ (376) $ 7,636 $ (26,435) $ 874 $ (25,561) Statements of Common Shareholder's Equity Retained Earnings Accumulated Other (In thousands) As Previously Reported Adjustment As Adjusted As Previously Reported Adjustment As Adjusted Balance, September 30, 2017 $ 630,691 8,017 $ 638,708 $ (4,522) (389) (4,911) Net income (loss) (26,642) 2,492 (24,150) — Other comprehensive income 4,176 (161) 4,015 Stock-based compensation 4,197 4,197 — ASU 2018-02 adoption impact 1,484 1,484 (1,484) (1,484) Dividends declared: Common stock (89,568) (89,568) Preferred stock (1,320) (1,320) Balance, September 30, 2018 $ 518,842 $ 10,509 $ 529,351 $ (1,830) $ (550) $ (2,380) Net income 49,173 (1,073) 48,100 Other comprehensive loss (4,797) 71 (4,726) Dividends declared: Common stock (24,237) (24,237) Preferred stock (330) (330) Balance, December 31, 2018 $ 543,448 $ 9,436 $ 552,884 $ (6,627) $ (479) $ (7,106) Net income 99,812 (2,707) 97,105 Other comprehensive income 11,536 146 11,682 Loss on preferred stock extinguishment (556) (556) Dividends declared: Common stock (100,000) (100,000) Preferred stock (1,169) (1,169) Balance, December 31, 2019 $ 541,535 $ 6,729 $ 548,264 $ 4,909 $ (333) $ 4,576 Without Change Adjustment As Reported (With change) Without Change Adjustment As Reported (With change) Net income 124,810 7,065 131,875 Other comprehensive loss (2,252) (747) (2,999) ASU 2016-13 implementation (1,543) (1,543) Dividends declared: Common stock (75,000) (75,000) Balance, December 31, 2020 $ 589,802 $ 13,794 $ 603,596 $ 2,657 $ (1,080) $ 1,577 The following tables represent accounting standards adopted by Washington Gas during the calendar year ended December 31, 2020, and other newly issued accounting standards that will be adopted by Washington Gas in the future. ACCOUNTING STANDARDS ADOPTED IN CALENDAR YEAR 2020 Standard Description Date of adoption Effect on the financial statements or other significant matters ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, including other subsequent ASUs further amending and clarifying the guidance. For credit losses on financial instruments measured at amortized cost, 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. In addition, entities may make a one-time irrevocable election on certain eligible financial instruments to elect fair value treatment on an instrument-by-instrument basis. January 1, 2020 Cash equivalents, accounts receivable, unbilled revenue, and contract assets are within the scope of the new standard. Upon adoption, we recorded an increase to our allowance for doubtful accounts and a reduction to retained earnings of $1.5 million. See Note 2 - Credit Losses for further information and the new required disclosures. 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. January 1, 2020 The adoption of this standard did not have a material effect on our financial statements. ASU 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606 Topic 808 does not provide comprehensive recognition or measurement guidance for collaborative arrangements. This update clarifies the interaction between Topic 606, Revenue from Contracts with Customers and Topic 808. January 1, 2020 The adoption of this standard did not have a material effect on our financial statements. ASU 2019-01, Leases (Topic 842) Codification Improvements This update addresses the determination of the fair value of the underlying asset by lessors that are not manufacturers or dealers, provides guidance for the presentation of the statement of cash flows for sales-type and direct financing leases, and clarifies transition disclosures related to the adoption of ASC 842. January 1, 2020 The adoption of this standard did not have a material effect on our financial statements. ASU 2019-04, Codification Improvements to Topic 326, Financial The amendments in this ASU provide clarification and improve the codification in recently issued accounting standards. January 1, 2020 The adoption of this standard did not have a material effect on our financial statements. ASU 2020-03, Codification Improvements to Financial Instruments This Update makes technical corrections and minor improvements to the guidance on financial instruments. January 1, 2020 The adoption of this standard did not have a material effect on our financial statements. 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. Early adoption is permitted. December 31, 2020 We have updated certain disclosures following the requirements in Note 10 - Pension and Other Post- retirement Benefit Plans. OTHER NEWLY ISSUED ACCOUNTING STANDARDS Standard Description Required date of adoption Effect on the financial statements or other significant matters ASU 2019-12, Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes As part of FASB's Simplification Initiative, this standard amends ASC Topic 740 by removing certain exceptions to the general principles and clarifying and amending other current guidance. Early adoption is permitted. January 1, 2021 It is not expected that the adoption of this standard will have a material effect on our financial statements. ASU 2020-04, Reference Rate Reform (Topic 848) Facilitation of the Effects of Reference Rate Reform on Financial Reporting This standard provides optional expedients and exceptions to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. The amendments may be elected prospectively to contract modifications made and to hedging relationships existing as of or entered into on or after the date of adoption and through December 31, 2022. December 31, 2022 We have not yet elected to adopt this ASU as of December 31, 2020 and are assessing the impact the adoption of this standard will have on our financial statements. |
Property, Plant, and Equipment at Original Cost | The following table represents the components of Washington Gas' Property, Plant and Equipment at original cost. ($ In millions) December 31, 2020 2019 Distribution, transmission and storage $ 5,502.6 86.5 % $ 5,148.1 86.3 % General, miscellaneous, intangibles and finance leases 547.9 8.6 % 543.2 9.1 % Construction work in progress (CWIP) 312.9 4.9 % 271.6 4.6 % Total 6,363.4 100.0 % 5,962.9 100.0 % |
Changes in Asset Retirement Obligations | Changes in Asset Retirement Obligations (In millions) Calendar Years Three Months Fiscal Year 2020 2019 2018 2018 Asset retirement obligations at beginning of the period $ 211.6 $ 308.1 $ 305.5 $ 298.9 Liabilities incurred in the period 1.7 1.7 — 1.4 Revaluation of asset retirement obligation — (101.0) — — Liabilities settled in the period (4.8) (7.4) — (7.3) Accretion expense 8.7 10.2 2.6 12.5 Asset retirement obligations at the end of the period (a) $ 217.2 $ 211.6 $ 308.1 $ 305.5 |
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 2019-12, Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes As part of FASB's Simplification Initiative, this standard amends ASC Topic 740 by removing certain exceptions to the general principles and clarifying and amending other current guidance. Early adoption is permitted. January 1, 2021 It is not expected that the adoption of this standard will have a material effect on our financial statements. ASU 2020-04, Reference Rate Reform (Topic 848) Facilitation of the Effects of Reference Rate Reform on Financial Reporting This standard provides optional expedients and exceptions to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. The amendments may be elected prospectively to contract modifications made and to hedging relationships existing as of or entered into on or after the date of adoption and through December 31, 2022. December 31, 2022 We have not yet elected to adopt this ASU as of December 31, 2020 and are assessing the impact the adoption of this standard will have on our financial statements. |
Credit Losses (Tables)
Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Credit Loss [Abstract] | |
Asset Optimization, Allowance for Credit Loss | The following table presents the activity of allowance for doubtful accounts by types. (In millions) Calendar Year Ended December 31, 2020 Account Receivables and Unbilled Revenue Asset Optimization Balance, beginning of period $ 18.7 $ — Provision 15.7 — Recorded to regulatory asset due to COVID-19 6.3 — Write offs (16.9) — Recoveries 2.1 — Adjustment upon adoption of ASC 326 1.4 0.1 Balance, end of period $ 27.3 $ 0.1 |
Account Receivables and Unbilled Revenue, Allowance for Credit Loss | The following table presents the activity of allowance for doubtful accounts by types. (In millions) Calendar Year Ended December 31, 2020 Account Receivables and Unbilled Revenue Asset Optimization Balance, beginning of period $ 18.7 $ — Provision 15.7 — Recorded to regulatory asset due to COVID-19 6.3 — Write offs (16.9) — Recoveries 2.1 — Adjustment upon adoption of ASC 326 1.4 0.1 Balance, end of period $ 27.3 $ 0.1 |
Revenue from Contracts With C_2
Revenue from Contracts With Customers (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Disaggregated Revenue by Type of Service (c) (In millions) Calendar Years Ended Three Months Ended December 31, 2020 2019 2018 Revenue from contracts with customers Gas and transportation sales Gas sold and delivered $ 856.0 $ 975.8 $ 303.2 Gas delivered for others 265.0 270.7 74.3 Other 35.0 46.5 12.5 Other revenues 3.4 5.6 1.5 Total revenue from contracts with customers $ 1,159.4 $ 1,298.6 $ 391.5 Other sources of revenue Revenue from alternative revenue programs (a) $ 69.8 $ 19.6 $ 9.1 Other (b) 5.1 12.5 1.5 Total revenue from other sources 74.9 32.1 10.6 Total Operating Revenue $ 1,234.3 $ 1,330.7 $ 402.1 (a) Washington Gas has determined that its RNA, WNA, and CRA billing adjustment mechanisms and accelerated pipe replacement programs are alternative revenue programs and accounted for under ASC Topic 980. b) The amount includes late fees billed. The decreases from prior periods were primarily caused by not billing of late payment fees due to COVID-19 as required by regulatory orders. c) The Company adopted ASU 2014-09, Revenue from Contracts with Customers (ASC 606), on October 1, 2018, using the modified retrospective method of adoption. Under this approach, prior year results are not required to be restated. |
Contract Assets from Contracts with Customers | The following table shows the opening and closing balances of contract assets from contracts with customers for the reporting periods, which were included within "Receivables" on Washington Gas' balance sheets. (In millions) 2020 2019 Contract assets at January 1 $ 44.2 $ 85.3 Contract assets at December 31 16.1 $ 44.2 Increase (decrease) in contract assets (a) $ (28.1) $ (41.1) (a) Decrease in 2020 reflected projects accepted by federal government, offset to the contact asset was a reduction to "Payable to associated companies"; Decrease in 2019 was due to the sale of the contract asset. Refer to "Project financing" in Note 16 — Related party transactions for detail discussion. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Schedule of Operating Lease Maturities | The following table provides our expected operating and finance lease payments at December 31, 2020. Maturity of Operating and Finance Lease Liabilities (In millions) Operating Leases Finance Leases 2021 $ 5.8 $ 0.1 2022 5.7 0.1 2023 5.8 0.1 2024 5.9 0.1 2025 5.4 0.1 Thereafter 41.2 — Total lease payments $ 69.8 $ 0.5 Less: Interest (13.2) — Present Value of Lease Liabilities $ 56.6 $ 0.5 |
Schedule of Finance Lease Maturities | The following table provides our expected operating and finance lease payments at December 31, 2020. Maturity of Operating and Finance Lease Liabilities (In millions) Operating Leases Finance Leases 2021 $ 5.8 $ 0.1 2022 5.7 0.1 2023 5.8 0.1 2024 5.9 0.1 2025 5.4 0.1 Thereafter 41.2 — Total lease payments $ 69.8 $ 0.5 Less: Interest (13.2) — Present Value of Lease Liabilities $ 56.6 $ 0.5 |
Schedule of Assets and Liabilities Lessee | The following table provides balance sheet location and amounts for finance leases, weighted average remaining lease term and weighted average discount rates for operating and finance leases. Supplemental Balance Sheet Information for Finance Leases ($ in millions) 2020 2019 Finance leases Property, plant and equipment, at original cost $ 0.4 n/a Accumulated depreciation and amortization $ — n/a Net property, plant and equipment $ 0.4 n/a Current finance lease liability included in "Current liabilities-Other" $ 0.1 n/a Non-current finance lease liability included in "Long-term Debt" $ 0.3 n/a Weighted average remaining lease term Operating leases 12.4 years 13.3 years Finance leases 4.9 years n/a Weighted average discount rate Operating leases 3.27 % 3.32 % Finance leases 1.69 % n/a |
Schedule of Lease Cost | The following table provides the components of lease expense. Components of Lease Expense (b) (In millions) Calendar Years Ended December 31, 2020 2019 Operating lease cost (a) Rent expense $ 5.3 $ 5.2 Variable lease cost $ 1.9 $ 1.9 Total Operating lease cost $ 7.2 $ 7.1 (a) Short-term lease cost for the periods was insignificant. (b) Finance lease cost was insignificant. The following table provides supplemental cash flow information related to operating and finance leases. Supplemental Cash Flow Information Calendar Years Ended December 31, ($ in millions) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities (a) Operating cash flows from operating leases $ 6.2 $ 2.9 Right-of-use assets obtained in exchange for lease liabilities Operating leases $ 1.6 $ 1.5 Finance leases $ 0.4 n/a (a) Operating and financing cash flows from finance leases were insignificant. |
Schedule of Lessor Operating Lease Payment to be Received Maturity | The following table summarizes the future operating lease payments to be received associated with these leases: Maturity of Operating Lease Payments (a) December 31, 2020 2021 $ 1.1 2022 0.8 2023 0.8 2024 0.7 2025 0.6 Thereafter 57.3 Total lease payments $ 61.3 (a) The payments are presented on an undiscounted basis |
Schedule of Operating Lease, Lease Income | The following table provides the operating lease income recognized for the periods. Operating Lease Revenue Recognized ($ in millions) Calendar Years Ended December 31, 2020 2019 Leasing revenue included in Operating Revenue $ 0.7 $ 0.7 Lease revenue included in Other income (expense) — net $ 0.4 $ 0.4 Total $ 1.1 $ 1.1 |
Regulated Operations (Tables)
Regulated Operations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Regulated Operations [Abstract] | |
Schedule of Regulatory Assets and Liabilities | At December 31, 2020 and 2019, 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 December 31, December 31, 2020 2019 2020 2019 Current: Gas costs due from/to customers (a) $ 10.9 $ 5.9 $ 47.3 $ 44.2 Interruptible sharing (a) 0.7 2.1 1.0 0.3 Revenue normalization mechanisms for Maryland and Virginia (a) 15.1 — — 4.0 Accelerated replacement recovery mechanisms (k) 4.7 1.9 0.3 0.3 Rates subject to refund (c) — — — 31.1 Virginia Coronavirus Relief Fund (o) — — 7.7 — Tax Cuts and Jobs Act rate refunds (d) — — 15.9 25.5 Total current $ 31.4 $ 9.9 $ 72.2 $ 105.4 Deferred: Accrued asset removal costs (l) $ — $ — $ 239.3 $ 254.4 Deferred gas costs (a)(b) 109.0 98.7 — — Pension and other post-retirement benefits ASC Topic 715 unrecognized costs/income (a)(e) Pension (n) 3.9 44.1 — — Pension and other post-retirement benefits (n) — — 262.4 195.7 Total pension and other post-retirement benefits 3.9 44.1 262.4 195.7 Other: Income tax-related amounts due from/to customers (f) 29.8 26.0 373.5 400.6 Losses/gains on issuance and extinguishment of debt and interest-rate derivative instruments (a)(g) 13.0 13.9 1.1 1.2 Rights-of-way fees (a) — — 1.6 2.4 Business process outsourcing and related costs (a) 0.6 1.9 — — Non-retirement employee benefits (a)(h) 16.5 14.9 — — Deferred distribution integrity management (a)(i) 0.7 2.0 — — Recoverable portion of abandoned liquid natural gas facility (a) 2.0 2.3 — — Environmental response costs (a)(j) 7.4 7.0 — — Energy efficiency program-Maryland (m) 14.3 9.3 — — COVID-19 related costs (p) 7.9 — — — Other regulatory items 7.6 7.6 0.8 0.5 Total other $ 99.8 $ 84.9 $ 377.0 $ 404.7 Total deferred $ 212.7 $ 227.7 $ 878.7 $ 854.8 Total $ 244.1 $ 237.6 $ 950.9 $ 960.2 (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. The amounts also include $5.1 million and $4.7 million receivables related to sharing with our customers associated with the Antero contract at December 31, 2020 and 2019, respectively. Refer to Note 13 — Commitments and Contingencies for discussion about the Antero contract. (c) Represents estimated refunds related to customers billed at a higher rate during the interim period as part of the 2019 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 9 — Income Taxes in the Notes to Financial Statements. (e) Refer to Note 10 — Pension and Other Post-Retirement Benefit Plans for a further discussion of these amounts. (f) 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. (g) The losses or gains on the issuance and extinguishment of debt and interest-rate derivative instruments include unamortized balances from transactions executed in prior years. These transactions create gains and losses that are amortized over the remaining life of the debt as prescribed by regulatory accounting requirements. (h) Represents the timing difference between the recognition of workers compensation and short-term disability costs in accordance with generally accepted accounting principles and the recovery of these costs through rates. (i) This balance represents amounts for deferred expenditures associated with Washington Gas’ Distribution Integrity Management Program (DIMP) in Virginia. (j) 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. (k) Balance represents amounts deferred over collections or under collections of surcharges associated with Washington Gas' accelerated pipeline recovery programs in the District of Columbia, Maryland and Virginia compared the amounts reflected in revenues. (l) Refer to Note 1 — Accounting Policies for a further discussion of these amounts. (m) Balance represents amounts for costs incurred associated with Washington Gas' participation in the energy conservation and efficiency program EmPOWER in Maryland that are recovered from customer over time. (n) Regulatory assets and liabilities related to Pension and Other post-retirement benefits were adjusted due to the change in accounting principle we made during the third quarter of 2020. We retrospectively applied this change in accounting principle to all applicable prior period financial information presented herein as required. Refer to Note 1 — Accounting Policies for further discussion. (o) Virginia Coronavirus Relief Funds received to provide direct assistance to Virginia customers with balance over 30 days in arrears. (p) Regulatory assets established to capture and track the incremental COVID-19 related costs. |
Accounts Payable and Other Ac_2
Accounts Payable and Other Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Accounts Payable and Other Accrued Liabilities | The table below provides details for the amounts included in “Accounts payable and other accrued liabilities” on the balance sheets. (In millions) December 31, 2020 December 31, 2019 Accounts payable — trade $ 201.2 $ 154.3 Employee benefits and payroll accruals 22.3 39.2 Wages payable 19.5 22.2 Accrued interest 18.4 17.3 Other accrued liabilities (a) 31.1 34.4 Total $ 292.5 $ 267.4 a) Amount includes $12.5 million and $11.7 million liability associated with the Antero contract at December 31, 2020 and 2019, respectively. Refer to Note 13 — Commitments and Contingencies for further information. |
Short-Term Debt (Tables)
Short-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Short-term Debt [Abstract] | |
Commited Credit Available | The following is a summary of committed credit available at December 31, 2020 and 2019. Committed Credit Available (In millions) December 31, 2020 December 31, 2019 Committed credit agreements Unsecured revolving credit facility, expires July 19, 2024 (a) $ 450.0 $ 450.0 Less: Commercial Paper outstanding (b) (285.0) (400.0) Net committed credit available $ 165.0 $ 50.0 Weighted average interest rate 0.31 % 2.04 % (a) Washington Gas has the right to request extensions with the bank group 's approval. Washington Gas’ revolving credit facility permits it to borrow an additional $100.0 million, with the bank groups' approval, for a total potential maximum borrowing of $550.0 million. (b) The amount represents principal amount of commercial paper. |
Long Term Debt (Tables)
Long Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The following table shows the outstanding notes with maturities in calendar years at December 31, 2020 and 2019. Long Term Debt Outstanding (In millions) December 31, 2020 December 31, 2019 Washington Gas Unsecured Notes (a) Due 2023, 6.65% $ 20.0 $ 20.0 Due 2025, 5.44% 40.5 40.5 Due 2026, 6.62% to 6.82% 53.0 53.0 Due 2027, 6.40% to 6.57% 72.0 72.0 Due 2028, 6.57% to 6.85% 52.0 52.0 Due 2030, 7.50% 8.5 8.5 Due 2036, 5.70% to 5.78% 50.0 50.0 Due 2040, 5.21% 75.0 75.0 Due 2043, 5.00% 75.0 75.0 Due 2044, 4.22% to 4.24% 150.0 150.0 Due 2046, 3.80% 450.0 450.0 Due 2049, 3.65% 400.0 300.0 Commercial Paper due in 2024 ( c) 100.0 100.0 Total Principal Amount of Long-Term Debt $ 1,546.0 $ 1,446.0 Unamortized debt premium (discount) 12.5 (4.3) Unamortized debt expense (11.6) (10.8) Non-current finance lease liability (d) 0.3 — Total Carrying Amount of Long-Term Debt $ 1,547.2 $ 1,430.9 Weighted average interest rate (b) 4.46 % 4.52 % (a) Includes MTNs and private placement notes. The amount represents face value of long-term debt including current maturities. (b) Weighted average interest rate is for the Washington Gas unsecured notes including current maturities. (c) At both December 2020 and 2019, we classified $100.0 million commercial paper balance as "Long-term debt" on Washington Gas' balance sheets due to its ability and intent to refinance these balances on a long-term basis. Refer to Note 7 — Short-term debt for discussion on the credit facility. (d) Refer to Note 4 — Leases for additional information related to finance leases. The following table shows the issuances and retirements of Washington Gas' unsecured notes for the calendar year ended December 31, 2020 and 2019, three months ended December 31, 2018. There were no issuances and retirements during the fiscal year ended September 30, 2018. Washington Gas' Unsecured Notes Issuances and Retirements (In millions) Principal (a)(c) Interest Rate (b) Effective Cost (b) Nominal Maturity Date Calendar Year Ended December 31, 2020 Issuances: 12/10/2020 $ 100.0 3.65 % 2.84 % 9/15/2049 Calendar Year Ended December 31, 2019 Issuances: 09/13/2019 $ 300.0 3.65 % 3.72 % 9/15/2049 Retirements: 11/1/2019 $ 50.0 4.76 % 4.76 % 11/1/2019 Three Months Ended December 31, 2018 Retirements: 12/05/2018 $ 50.0 7.46 % 7.46 % 12/5/2018 (a) Represents face amount of notes. (b) Represents the interest rate and effective cost at the trade date of the debt. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Expense or Benefit | The following tables provide the components of income tax expenses for the calendar years ended December 31, 2020 and 2019, three months ended December 31, 2018, and fiscal year ended September 30, 2018. Components of Income Tax Expense (Benefit) Calendar Years Three Months Fiscal Year (In thousands) 2020 2019 2018 2018 Current: Federal $ (6,660) $ — $ — $ — State (1,470) — — 1,274 Total current (8,130) — — 1,274 Deferred: Federal 27,704 11,496 8,746 (35,668) State 13,821 7,245 (1,110) 10,107 Total deferred (a)(b) 41,525 18,741 7,636 (25,561) Amortization of investment tax credits (551) (658) (165) (702) Total income tax expense (benefit) $ 32,844 $ 18,083 $ 7,471 $ (24,989) (a) Includes tax expense of $1.2 million and $7.0 million related to re-measurement of deferred income taxes for three months ended December 31, 2018 and the fiscal year ended September 30, 2018, respectively. (b) The amounts were adjusted due to the change in accounting principle we made during the third quarter of 2020. We retrospectively applied the change in accounting principle to all applicable prior period financial information presented herein as required. Refer to Note 1 — Accounting Policies for further discussion. |
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. Reconciliation Between the Statutory Federal Income Tax Rate and Effective Tax Rate Calendar Years Ended Three Months Ended Fiscal Year (In thousands) 2020 2019 2018 2018 Income taxes at statutory federal income tax rate (a) $ 34,591 21.00 % $ 24,189 21.00 % $ 11,670 21.00 % $ (10,319) 21.00 % Increase (decrease) in income taxes resulting from: Plant basis differences — — 699 0.61 (4,261) (7.67) 1,079 (2.20) Allowance for funds used during construction — — — — (520) (0.94) (70) 0.14 Amortization of investment tax credits (551) (0.33) (658) (0.57) (165) (0.30) (703) 1.43 Amortization of excess deferred taxes (12,189) (7.40) (18,020) (15.64) (2,431) (4.37) (9,798) 19.94 Cost of removal — — 5,837 5.07 (28) (0.05) (1,561) 3.18 State income taxes-net of federal benefit (b) 10,631 6.45 6,259 5.43 2,665 4.80 (2,492) 5.07 Re-measurement due to Tax Act 2017 — — — — 1,243 2.23 7,031 (14.31) ASU 2016-09 adoption — — — — — — (3,223) 6.56 Return to provision adjustment (5) — (1,666) (1.45) — — (4,669) 9.50 Other items-net 367 0.22 1,443 1.25 (702) (1.26) (264) 0.54 Total income tax expense (benefit) and effective tax rate $ 32,844 19.94 % $ 18,083 15.70 % $ 7,471 13.44 % $ (24,989) 50.85 % (a) As a result of the merger with AltaGas, Washington Gas 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 tax rate. Due to the net operating loss for federal tax purposes through September 30, 2018, all the year activity is ultimately taxed at 21%. As such, for presentational purposes, we applied a 21% rate to the entire fiscal year 2018 activity. (b) The amounts in 2019 and 2018 were adjusted due to the change in accounting principle we made in 2020. We retrospectively applied the change in accounting principle to all applicable prior period financial information presented herein as required. Refer to Note 1 — Accounting Policies for further discussion. |
Components of Accumulated Deferred Income Tax Assets (Liabilities) | The following table provides the components of accumulated deferred income tax assets (liabilities) for Washington Gas at December 31, 2020 and 2019. Components of Accumulated Deferred Income Tax Assets (Liabilities) (In thousands) December 31, 2020 December 31, 2019 Deferred income tax assets: Pensions (a) $ 3,048 $ 15,718 Uncollectible accounts 4,739 4,856 Inventory overheads 3,911 3,504 Employee compensation and benefits 30,604 30,461 Derivatives 5,695 6,522 Income taxes recoverable through future rates 145,567 130,946 Net operating loss 63,444 132,774 Other 4,810 — Total assets 261,818 324,781 Deferred income tax liabilities: Other post-retirement benefits (a) 115,836 88,031 Accelerated depreciation and other plant related items 787,035 691,134 Losses/gains on reacquired debt — 499 Deferred gas costs 15,823 9,831 Other — 3 Total liabilities 918,694 789,498 Net accumulated deferred income tax assets (liabilities) $ (656,876) $ (464,717) (a) The amounts in 2019 were adjusted due to the change in accounting principle we made during the third quarter of 2020. We retrospectively applied the change in accounting principle to all applicable prior period financial information presented herein as required. Refer to Note 1 — Accounting Policies for further discussion. |
Unrecognized Tax Benefits | The following table summarizes the change in unrecognized tax benefits during calendar years ended December 31, 2020 and 2019, three months ended December 31, 2018, and fiscal year ended September 30, 2018, and our total unrecognized tax benefits at the periods under the provisions of ASC Topic 740. Unrecognized Tax Benefits Calendar Years Three Months Fiscal Year (In thousands) 2020 2019 2018 2018 Total unrecognized tax benefits at beginning of the periods $ 26,459 $ 35,906 $ 43,567 $ 48,009 Increases resulting from current period tax positions — — 2,574 10,947 Decreases resulting from prior period tax positions (15,394) (9,447) (10,235) (15,389) Total unrecognized tax benefits at end of the periods $ 11,065 $ 26,459 $ 35,906 $ 43,567 |
Pension and Other Post-Retire_2
Pension and Other Post-Retirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Post Retirement Benefits | The following table provides the benefit obligation, fair value of plan assets, the funded status of the plans, and amounts recognized on the Company's balance sheets. Post-Retirement Benefits Pension Benefits (a) Health and Life Benefits Calendar Years Ended Calendar Years Ended (In millions) 2020 2019 2020 2019 Change in projected benefit obligation (b) Benefit obligation at beginning of period $ 1,059.9 $ 971.8 $ 269.2 $ 277.9 Service cost 12.5 12.3 5.3 5.0 Interest cost 35.5 41.2 9.3 11.9 Change in plan benefits — 0.2 — — Actuarial loss (gain) 77.9 103.6 25.2 (12.3) Plan participants' contribution — — 1.6 1.6 Settlements (18.9) (19.4) — — Benefits paid (53.2) (50.6) (15.4) (15.8) Other — 0.8 0.5 0.9 Projected benefit obligation at end of period (b) $ 1,113.7 $ 1,059.9 $ 295.7 $ 269.2 Change in plan assets Fair value of plan assets at beginning of period 935.2 807.0 638.0 528.8 Actual return on plan assets 168.9 176.7 107.4 123.4 Company contributions 21.0 21.5 — — Plan participants' contribution — — 1.6 1.6 Settlements (18.9) (19.4) — — Expenses — — — — Benefits paid (53.2) (50.6) (15.3) (15.8) Fair value of plan assets at end of period $ 1,053.0 $ 935.2 $ 731.7 $ 638.0 Funded status at end of period (60.7) (124.7) 436.0 368.8 Allocation to affiliates (0.4) (0.8) 2.7 2.3 Adjusted funded status at end of period $ (60.3) $ (123.9) $ 433.3 $ 366.5 Total amounts recognized on balance sheet Non-current asset — — 433.0 366.5 Current liability (6.7) (19.6) — — Non-current liability (53.6) (104.3) — — Total recognized $ (60.3) $ (123.9) $ 433.0 $ 366.5 (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), accumulated benefit obligation (ABO), and fair value of plan assets the qualified pension plan, DB SERP and DB Restoration at December 31, 2020 and 2019. Projected and accumulated benefit obligation (In millions) Qualified Pension Plan DB SERP DB Restoration December 31, December 31, December 31, 2020 2019 2020 2019 2020 2019 Projected benefit obligation $ 1,075.5 $ 1,002.3 $ 32.4 $ 52.3 $ 5.8 $ 5.4 Accumulated benefit obligation $ 1,022.0 $ 943.2 $ 32.4 $ 52.3 $ 5.6 $ 4.8 Fair value of plan assets $ 1,053.0 $ 935.2 $ — $ — $ — $ — |
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 December 31, 2020 and 2019. The decrease in the actuarial net loss related to pension benefits and increase in the actuarial gain related to health and life benefits at December 31, 2020 compared to 2019 were due to the actual return on plan assets being higher than expected. Unrecognized Costs/Income Recorded on the Balance Sheet (In millions) Pension Benefits Health and Life Benefits December 31, December 31, 2020 2019 2020 2019 Actuarial net loss (gain) $ (0.4) $ 60.1 $ (189.4) $ (133.1) Prior service cost (credit) 0.7 1.0 (73.2) (87.0) Total (a) $ 0.3 $ 61.1 $ (262.6) $ (220.1) Regulatory asset (liability) (6.0) 44.1 (252.5) (195.7) Pre-tax accumulated other comprehensive loss (income) (b) 6.3 16.8 (8.4) (23.0) Total $ 0.3 $ 60.9 $ (260.9) $ (218.7) (a) Pension benefits include amount allocated to affiliates of $0.2 million at December 31, 2019. There was no amount allocated to the affiliates at December 31, 2020. Health and Life Benefits includes amounts allocated to affiliates of $1.7 million and $1.4 million at December 31, 2020 and 2019, respectively. (b) The total amount of accumulated other comprehensive loss recorded on our balance sheets at December 31, 2020 and 2019 was net of an income tax expense of $0.5 million and $1.6 million, respectively. |
Amount Recognized During Current Year | The following tables provide 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 before allocations to affiliates and capital during the calendar years ended December 31, 2020 and 2019. Amounts Recognized During the Calendar Year Ended December 31, 2020 Regulatory assets/liabilities Accumulated other (In millions) Pension Health and Pension Health and Actuarial net loss (gain) $ 5.4 $ (1.8) $ 2.3 $ (0.2) Prior service cost (credit) 0.2 (12.0) 0.1 (1.6) Total $ 5.6 $ (13.8) $ 2.4 $ (1.8) |
Amount Recognized During Next Fiscal Year | Amounts Recognized During the Calendar Year Ended December 31, 2019 Regulatory assets/liabilities Accumulated other (In millions) Pension Health and Pension Health and Actuarial net loss $ 6.1 $ — $ 1.8 $ — Prior service cost (credit) 0.1 (15.0) 0.2 (0.7) Total $ 6.2 $ (15.0) $ 2.0 $ (0.7) |
Components of Net Periodic Benefit Costs (Income) | The components of the net periodic benefit costs (income) related to pension and other post-retirement benefits were as follows. Components of Net Periodic Benefit Costs (Income) Pension Benefits Health and Life Benefits Calendar Years Ended Three Months Fiscal Year Calendar Years Ended Three Months Fiscal Year (In millions) 2020 2019 2018 2018 2020 2019 2018 2018 Service cost $ 12.5 $ 12.3 $ 3.0 $ 14.9 $ 5.3 $ 5.0 $ 1.3 $ 5.3 Interest cost 35.5 41.2 10.6 39.6 9.3 11.9 3.0 11.7 Expected return on plan assets (43.2) (42.1) (10.1) (43.6) (23.6) (24.2) (6.1) (24.4) Recognized prior service cost (credit) 0.3 0.3 0.1 0.3 (13.6) (15.8) (4.4) (17.6) Recognized actuarial loss (gain) 7.7 7.9 2.0 14.2 (2.0) — — — Settlement charge (a) 4.9 5.5 — — — — — — Other adjustments (b) — — — — — 0.7 — — Net periodic benefit cost (income) $ 17.7 $ 25.1 $ 5.6 $ 25.4 $ (24.6) $ (22.4) $ (6.2) $ (25.0) Allocation to affiliates (1.3) (1.8) (0.4) (4.2) 1.3 2.6 0.8 3.1 Adjusted net periodic benefit cost (income) $ 16.4 $ 23.3 $ 5.2 $ 21.2 $ (23.3) $ (19.8) $ (5.4) $ (21.9) Amount allocated to construction projects (c ) (1.6) (1.9) (0.6) (4.7) (0.7) (0.8) (0.2) 4.0 Amount deferred as regulatory asset (liability)-net allocations (d) — 0.6 1.5 5.9 — — — — Amount charged (credited) to expense $ 14.8 $ 22.0 $ 6.1 $ 22.4 $ (24.0) $ (20.6) $ (5.6) $ (17.9) (a) Amounts relate to partial settlement charges associated with lump sum payments from the Washington Gas’ defined benefit supplemental executive retirement plan (DB SERP) to executives who have retired. (b) "Other Adjustments” in 2019 represents the one-time charge associated with the temporary deviation in the substantive plan of delaying the cap on pre-65 retiree medical benefits to 2021. © On October 1, 2018, Washington Gas prospectively adopted ASU 2017-07. As a result, only the service cost component of net periodic benefit costs (income) is eligible for capitalization. (d) Amounts represents 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. The amounts were fully amortized as of December 31, 2019 |
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 Calendar Years Three Months Fiscal Year Calendar Years Three Months Fiscal Year 2020 2019 2018 2018 2020 2019 2018 2018 Discount rate (a) 2.6%-2.8% 3.4%-3.5% 4.3%-4.4% 4.3%-4.4% 2.8% 3.5% 4.4% 4.4% Rate of compensation increase 2.5%-3.0% 3.0%-3.5% 3.5%-4.1% 3.5%-4.1% 2.5%-3.0% 3.5% 4.1% 4.1% (a) The decrease in the discount rate in the calendar year ended December 31, 2020 compared to prior years primarily reflects the decrease in long-term interest rates. Net Periodic Benefit Cost Assumptions Pension Benefits Health and Life Benefits Calendar Years Three Months Fiscal Year Calendar Years Three Months Fiscal Year 2020 2019 2018 2018 2020 2019 2018 2018 Discount rate (a) 3.4%-3.5% 4.3%-4.4% 4.3%-4.4% 3.6%-3.9% 3.5 % 4.4 % 4.4 % 3.9 % Expected long-term return on plan assets (b) 5.25% 5.75 % 5.75 % 5.75 % 4.50% 5.25 % 5.25 % 5.50 % Rate of compensation increase (c) 3.0%-3.5% 3.5% - 4.1% 3.5%-4.1% 3.5%-4.1% 3.5 % 4.1 % 4.1 % 4.1 % (a) The changes in the discount rates over the prior periods 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 blended income tax rate of 33.32%. (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. |
Target Asset Allocation by Asset Class | Target Asset Allocation by Asset Class Qualified Pension Trust Asset (b) Union-eligible Trust Asset Management Trust Asset U.S. Equities 32 % 30 % 50 % International Equities 8 % — — Real Estate 5 % — — Fixed Income (a) 55 % 70 % 50 % Total 100 % 100 % 100 % (a) The Fixed Income asset class includes the related derivatives. |
Pension Plan Assets | The following tables present the fair value of the pension plan assets and health and life insurance plan assets by asset category at December 31, 2020 and 2019. Pension Plan Assets % of (In millions) Level 1 Level 2 Total Total At December 31, 2020 Cash and cash equivalents $ 4.9 $ — $ 4.9 0.5 % Equity securities Preferred Securities — 0.2 0.2 — Fixed income securities U.S. Treasuries — 149.2 149.2 14.2 U.S. Corporate Debt — 300.1 300.1 28.5 U.S. Agency Obligations and Government Sponsored Entities — 29.3 29.3 2.8 Asset-Backed Securities — 0.7 0.7 0.1 Municipalities — 10.0 10.0 0.9 Non-U.S. Corporate Debt — 46.5 46.5 4.4 Derivatives (c) — 0.3 0.3 — Other (a) — 13.1 13.1 1.2 Mutual Funds (b) 60.9 — 60.9 5.8 Total investments in the fair value hierarchy $ 65.8 $ 549.4 $ 615.2 58.4 % Investments measured at net asset value using the NAV practical expedient (d) Collective Trust Fund (e) 373.8 35.5 Commingled Funds and Pooled Separate Accounts (f) 25.0 2.4 Private Equity/Limited Partnership (g) 44.0 4.2 Total fair value of plan investments $ 1,058.0 100.5 % Net payable (h) (5.0) (0.5) Total plan assets at fair value (i) $ 1,053.0 100.0 % Pension Plan Assets % of (In millions) Level 1 Level 2 Total Total At December 31, 2019 Cash and cash equivalents $ 4.2 $ — $ 4.2 0.4 % Equity securities Preferred Securities — 0.2 0.2 — Fixed income securities U.S. Treasuries — 145.2 145.2 15.5 U.S. Corporate Debt — 234.8 234.8 25.1 U.S. Agency Obligations and Government Sponsored Entities — 56.7 56.7 6.1 Asset-Backed Securities — 0.8 0.8 0.1 Municipalities — 9.9 9.9 1.1 Non-U.S. Corporate Debt — 45.1 45.1 4.8 Other (a) — 6.3 6.3 0.7 Mutual Funds (b) 48.2 — 48.2 5.2 Derivatives (c) — (0.1) (0.1) — Total investments in the fair value hierarchy $ 52.4 $ 498.9 $ 551.3 59.0 % Investments measured at net asset value using the NAV practical expedient (d) Commingled Funds and Pooled Separate Accounts (f) 358.6 38.3 Private Equity/Limited Partnership (g) 42.8 4.6 Total fair value of plan investments $ 952.7 101.9 % Net payable (h) (17.5) (1.9) Total plan assets at fair value (i) $ 935.2 100.0 % (a) This category primarily includes non-U.S. government bonds as of December 31, 2020 and 2019. (b) At December 31, 2020 and 2019, the investment in a mutual fund consisted primarily of common stock of non-U.S. based companies. (c) December 31, 2020 and 2019, 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. (d) 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. (e) At December 31, 2020 investments in collective trust funds consisted primarily of 90.30% common stock of U.S companies; 7.35% income producing properties located in the United States; and 2.35% short-term money market investments. (f) At December 31, 2020, investments in commingled funds and a pooled separate accounts consisted of 100% income producing properties located in the United States. At December 31, 2019, 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 December 31, 2020 and 2019, investments in a private equity/limited partnership consisted of common stock of international companies. (h) 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 rabbi trust investments located in "Current Assets-Other" and "Deferred Charges and Other Assets-Other" on our balance sheets. Refer to Note 15 — Fair Value Measurements for fair value of rabbi trust investments. |
Healthcare Trends | Healthcare and Life Insurance Plan Assets % of (In millions) Level 1 Level 2 Total Total At December 31, 2020 Cash and Cash Equivalents $ 4.9 $ — $ 4.9 0.7 % Fixed Income Securities U.S Agency Obligations — 0.7 0.7 0.1 U.S. Treasuries — 60.8 60.8 8.3 U.S. Corporate Debt — 73.1 73.1 10.0 Municipalities — 6.9 6.9 0.9 Non-U.S. Corporate Debt — 8.5 8.5 1.2 Other (a) — 5.3 5.3 0.7 Total investments in the fair value hierarchy $ 4.9 $ 155.3 $ 160.2 21.9 % Investments measured at net asset value using the NAV practical expedient (b) Commingled Funds (c) 571.7 78.1 % Total fair value of plan investments $ 731.9 100.0 % Net receivable (d) (0.2) — Total plan assets at fair value $ 731.7 100.0 % Healthcare and Life Insurance Plan Assets % of (In millions) Level 1 Level 2 Total Total At December 31, 2019 Cash and Cash Equivalents $ 3.4 $ — $ 3.4 0.5 % Fixed Income Securities U.S Agency Obligations — 2.2 2.2 0.3 U.S. Treasuries — 55.5 55.5 8.7 U.S. Corporate Debt — 56.3 56.3 8.8 Municipalities — 5.9 5.9 0.8 Non-U.S. Corporate Debt — 11.1 11.1 1.7 Other (a) — 2.9 2.9 0.5 Total investments in the fair value hierarchy $ 3.4 $ 133.9 $ 137.3 21.5 % Investments measured at net asset value using the NAV practical expedient (b) Commingled Funds (c) 499.6 78.3 % Total fair value of plan investments $ 636.9 99.8 % Net receivable (d) 1.1 0.2 Total plan assets at fair value $ 638.0 100.0 % (a) At December 31, 2020 and 2019, 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 December 31, 2020, investments held by commingled funds in which the plan invests consisted of 50% of common stock of large-cap U.S. companies, 20% of US Govt fixed income securities and 30% corporate bonds. At December 31, 2019, investments held by commingled funds in which the plan invests consisted 58% of common stock of large-cap U.S. companies, 18% of US Govt fixed income securities and 24% corporate bonds. (d) Net receivable primarily represents pending trades for investments sold and interest receivable net of pending trades for investments purchased. |
Expected Benefit Payments | Expected benefit payments, including benefits attributable to estimated future employee service, which are expected to be paid over the next ten calendar years are as follows. Expected Benefit Payments (In millions) Pension Health and 2021 $ 58.0 $ 15.3 2022 57.8 15.0 2023 54.7 14.7 2024 55.6 14.5 2025 56.4 14.4 2026—2030 287.7 74.2 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Current Award Activity | The following tables summarize information regarding performance unit and restricted unit activity during the calendar years ended December 31, 2020 and 2019. Performance Units and Restricted Units Award Activity Number of units Calendar Year Ended Calendar Year Ended ALA Phantom Units Performance Units Restricted ALA Phantom Units Performance Units Restricted Non-vested and outstanding, beginning of the year 27,707 3,558,711 940,414 — 5,934,828 2,253,585 Granted 427,607 — — 27,707 — — Vested — — (371,031) — — (620,382) Canceled/forfeited (111,357) (781,902) (270,019) — (2,376,117) (692,789) Non-vested and outstanding, end of year 343,957 2,776,809 299,364 27,707 3,558,711 940,414 |
Schedule of Stock Options Roll Forward | The following table summarizes information about the stock options. Calendar Year Ended Calendar Year ended Number of Exercise Price ( Canadian Dollars) Number of Exercise Price ( Canadian Dollars) Stock Options outstanding, beginning of year 208,561 $ 23.88 65,000 $ 35.16 Granted 338,962 $ 19.57 143,561 $ 18.78 Stock options outstanding, end of year 547,523 $ 21.21 208,561 $ 23.88 Stock option exercisable, end of year 106,604 $ 28.05 52,500 $ 36.14 |
Disclosure of Share-based Compensation Arrangements | The following table summarizes the employee share option plan at December 2020. Options Outstanding Options Exercisable Number Outstanding Weighted Average Exercise Price (Canadian Dollars) Weighted Average Remaining Contractual Life (Years) Number Exercisable Weighted Average Exercise Price (Canadian Dollars) Weighted Average Remaining Contractual Life (Years) $18.00 to $25.08 482,523 19.33 5.00 47,854 18.78 4.96 $25.09 to $46.70 65,000 35.16 1.13 58,750 35.59 1.02 Total 547,523 21.21 4.54 106,604 28.05 2.54 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The fair value of each option granted is estimated on the date of grant using the Black-Scholes-Merton option pricing model. The weighted average grant date fair value and assumptions are as follows. Calendar Years Ended December 31, 2020 2019 Fair value per options ( Canadian dollars ) 2.59 2.46 Risk-free interest rate (%) 1.57 1.63 Expected life (years) 6 6 Expected volatility (%) 25.05 24.99 Annual dividend per share ( Canadian dollars ) (a) 4.85 5.03 (a) Annual dividend per share is calculated based on a weighted average share price and forward dividend yields as the grant dates. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
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 during the next five calendar years and thereafter. Washington Gas Contract Minimums (In millions) Pipeline Contracts (a) Gas Purchase (b) 2021 $ 259.4 $ 349.7 2022 254.0 359.9 2023 244.6 318.1 2024 212.7 323.4 2025 197.2 328.9 Thereafter 641.2 1,645.4 Total $ 1,809.1 $ 3,325.4 (a) Represents minimum payments for natural gas transportation, storage and peaking contracts that have expiration dates through calendar year 2044. (b) Includes known and reasonably likely commitments to purchase natural gas. Cost estimates are based on forward market prices at December 31, 2020. |
Schedule of Future Minimum Merger Commitments | The following table presents the future payments of merger commitments by calendar year. These commitments have been accrued on Washington Gas' balance sheets at December 31, 2020. Merger Commitments Payments (In millions) 2021 2022 2023 2024 2025 Thereafter Total Merger commitments $ 4.1 $ 1.5 $ 1.5 $ 1.2 $ 1.2 $ 2.4 $ 11.9 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Gains and (Losses) on Derivative Instruments | The following table presents the net margin recorded to “Utility cost of gas” after sharing and management fees associated with our asset optimization transactions. Net Margins for Asset Optimization (In millions) Calendar Years Ended December 31, Three Months Ended December 31, Fiscal Year Ended September 30, 2020 2019 (a) 2018 (a) 2018 Realized gain $ 20.8 $ 13.1 $ 5.3 $ 23.9 Unrealized gain/(loss) 3.6 5.4 $ (4.2) 10.4 Net margin gain/(loss) $ 24.4 $ 18.5 $ 1.1 $ 34.3 (a) The net margin for the calendar year ended December 31, 2019 also includes a $3.0 million loss related to Antero contract. Refer to Note 13 — Commitments and Contingencies for further information of Antero contract. The following table presents all gains and losses associated with derivative instruments. Gains and (Losses) on Derivative Instruments (In millions) Calendar Years Ended December 31, Three Months Ended December 31, Fiscal Year Ended September 30, 2020 2019 2018 2018 Recorded to income — Utility cost of gas $ 5.5 $ 5.5 $ (3.2) $ (2.1) Recorded to regulatory assets — Gas costs 0.3 14.0 $ (6.0) (7.6) Total $ 5.8 $ 19.5 $ (9.2) $ (9.7) |
Absolute Notional Amounts of Open Positions on Derivative Instruments | The following table presents the balance sheet classification for all derivative instruments at December 31, 2020 and 2019. Absolute Notional Amounts of Open Positions on Derivative Instruments December 31, 2020 December 31, 2019 Natural Gas (In millions of therms) Asset optimization & trading 10,471.0 11,671.0 Other risk-management activities 881.0 976.0 |
Balance Sheet Classification of Derivative Instruments | The following table presents the balance sheet line items where derivatives are recognized. Washington Gas 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 on the balance sheets. Balance Sheet Classification of Derivative Instruments (In millions) Gross amounts Gross amounts Netting of Net amounts December 31, 2020 Derivative assets (a) $ 17.8 $ (1.5) $ — $ 16.3 Derivative liabilities (b) (98.8) 1.5 1.6 $ (95.7) Net derivative assets (liabilities) $ (81.0) $ — $ 1.6 $ (79.4) December 31, 2019 Derivative assets (a) $ 13.0 $ 4.0 $ — $ 17.0 Derivative liabilities (b) (104.0) (4.0) 6.2 (101.8) Net derivative assets (liabilities) $ (91.0) $ — $ 6.2 $ (84.8) (a) Derivative assets at December 31, 2020 include $5.0 million recorded in "Current assets — Derivatives" and $11.3 million in" Deferred charges and other assets — Derivatives" on Washington Gas' balance sheets; Derivative assets at December 31, 2019 include $6.6 million recorded in "Current assets —Derivatives" and $10.4 million in" Deferred charges and other assets — Derivatives" on Washington Gas' balance sheets. (b) Derivative liabilities at December 31, 2020 include $7.1 million recorded in "Current liabilities — Derivatives " and $88.6 million recorded in " Deferred credits — Derivatives" on Washington Gas' balance sheets; Derivative liabilities at December 31, 2019 include $4.1 million recorded in "Current liabilities — Derivatives " and $97.7 million recorded in " Deferred credits — Derivatives" on Washington Gas' balance sheets. |
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 December 31, 2020 and 2019, respectively. Potential Collateral Requirements for Derivative Liabilities (In millions) December 31, 2020 December 31, 2019 Derivative liabilities with credit-risk-contingent features $ 0.7 $ 0.4 Maximum potential collateral requirements 0.6 0.4 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements Under the Fair Value Hierarchy | The following table summarizes the carrying amounts and fair value of financial assets and liabilities. 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. (In millions) Carrying Amount Level 1 Level 2 Level 3 Total At December 31, 2020 Financial assets Fair value through net income Cash equivalents (a) $ 3.2 $ 3.2 $ — $ — $ 3.2 Rabbi trust investments (b) 22.0 22.0 — — 22.0 Derivative asset - current 2.1 — 0.7 1.4 2.1 Derivative asset - deferred 4.5 — — 4.5 4.5 Fair value through regulatory assets/liabilities Derivative asset - current 2.9 — 0.9 2.0 2.9 Derivative asset - deferred 6.8 — — 6.8 6.8 Amortized cost Other long-term receivables (c) 1.4 — 1.4 — 1.4 Total Assets $ 42.9 $ 25.2 $ 3.0 $ 14.7 $ 42.9 Financial Liabilities Fair value through net income Derivative liabilities - current $ (0.4) $ — $ — $ (0.4) $ (0.4) Derivative liabilities - deferred (26.8) — — (26.8) (26.8) Fair value through regulatory assets/liabilities Derivative liabilities - current (6.7) — (0.3) (6.4) (6.7) Derivative liabilities - deferred (61.8) — (0.7) (61.1) (61.8) Amortized cost Commercial paper (d) (285.0) — (285.0) — (285.0) Unsecured notes (e) (1,446.9) — (1,779.8) — (1,779.8) Total Liabilities $ (1,827.6) $ — $ (2,065.8) $ (94.7) $ (2,160.5) (In millions) Carrying Amount Level 1 Level 2 Level 3 Total At December 31, 2019 Financial assets Fair value through net income Cash equivalents (a) $ 11.0 $ 11.0 $ — $ — $ 11.0 Rabbi trust investments (b) 44.1 44.1 — — 44.1 Derivative asset - current 2.6 — 0.1 2.5 2.6 Derivative asset - deferred 4.1 — 0.2 3.9 4.1 Fair value through regulatory assets/liabilities Derivative asset - current 4.0 — — 4.0 4.0 Derivative asset - deferred 6.3 — 0.3 6.0 6.3 Amortized cost Other long-term receivables (c) 1.3 — 1.3 — 1.3 Total Assets $ 73.4 $ 55.1 $ 1.9 $ 16.4 $ 73.4 Financial Liabilities Fair value through net income Derivative liabilities - current $ (0.7) $ — $ — $ (0.7) (0.7) Derivative liabilities - deferred (28.4) — — (28.4) (28.4) Fair value through regulatory assets/liabilities Derivative liabilities - current (3.4) — (0.6) (2.8) (3.4) Derivative liabilities - deferred (69.3) — — (69.3) (69.3) Amortized cost Commercial paper (d) (399.5) — (399.5) — (399.5) Unsecured notes (e) (1,330.9) — (1,480.8) — (1,480.8) Total Liabilities $ (1,832.2) $ — $ (1,880.9) $ (101.2) $ (1,982.1) (a) Cash equivalents represent the amounts invested in money market funds and were included in "Cash and cash equivalents" of the accompanying balance sheets. (b) Rabbi Trust investments are invested in money market funds. At December 31, 2020, carrying amount of $6.7 million and $15.3 million was included in "Current assets — Other" and "Deferred charges and other assets — Other" of the accompanying balance sheets, respectively; At December 31, 2019, carrying amount of $19.5 million and $24.6 million was included in "Current assets — Other" and "Deferred charges and other assets — Other", respectively. (c) Amount represents a long-term receivable from one of our trading partners related to the Antero contract discussed in Note 13 — Commitments and Contingencies. The carrying amount represents the long-term receivable net of allowance for doubtful accounts. (d) The balance at December 31, 2020 includes $185.0 million located in "Notes payable", and $100.0 million located in “Long-term debt” on the accompanying balance sheets. The balance at December 31, 2019 includes $299.5 million located in "Notes payable", and $100.0 million located in “Long-term debt” on the accompanying balance sheets. (e) Includes adjustments for current maturities and unamortized discounts, as applicable. The amount was included in "Long-term debt" on the accompanying balance sheets. |
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. Quantitative Information about Level 3 Fair Value Measurements (In millions) Net Fair Value Valuation Techniques Unobservable Inputs Weighted Average (a) Range December 31, 2020 ($80.0) Discounted Cash Flow Natural Gas Basis Price (per dekatherm) (0.36) ($0.910)-$2.073 December 31, 2019 ($84.8) Discounted Cash Flow Natural Gas Basis Price (per dekatherm) n/a ($0.905)-$2.523 (a) ASU 2018-13 has been applied prospectively, beginning with the interim period ending March 31, 2020. The average level 3 price was weighted by transaction volume. |
Reconciliation of Fair Value Measurements Using Significant Level 3 Inputs | The following table presents a reconciliation of changes in net fair value of Level 3 derivative instruments measured at fair value on a recurring basis. Reconciliation of Fair Value Measurements Using Significant Level 3 Inputs (In millions) Calendar Years Three Months Fiscal Year 2020 2019 2018 2018 Balance at beginning of period $ (84.8) $ (106.6) $ (94.1) $ (122.6) Realized and unrealized gains (losses) Recorded to income-Utility cost of gas 4.1 7.2 (4.4) (4.5) Recorded to regulatory assets—gas costs (1.2) 17.8 (5.8) (10.0) Transfers into Level 3 — (6.7) — (6.9) Transfers out of Level 3 1.3 7.9 — 8.9 Settlements 0.6 (4.4) (2.3) 41.0 Balance at end of period $ (80.0) $ (84.8) $ (106.6) $ (94.1) |
Unrealized Gains (Losses) Recorded for Level 3 Measurements | The following table presents the unrealized gains (losses) attributable to Level 3 derivative instruments measured at fair value on a recurring basis. Unrealized Gains (Losses) Recorded for Level 3 Measurements (In millions) Calendar Years Three Months Fiscal Year 2020 2019 2018 2018 Recorded to income — Utility cost of gas $ 6.7 $ 9.9 $ (4.0) $ 2.3 Recorded to regulatory assets — Gas costs 7.2 21.6 (5.3) 0.2 Total $ 13.9 $ 31.5 $ (9.3) $ 2.5 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of related parties | The following table shows the amounts Washington Gas charged WGL Energy Services for balancing services. Washington Gas - Gas Balancing Service Charges (In millions) Calendar Years Ended Three Month Ended Fiscal Year Ended 2020 2019 2018 2018 Gas balancing service charge $ 16.6 $ 20.0 $ 4.6 $ 18.5 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (AOCI) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table shows the changes in accumulated other comprehensive income (loss) for Washington Gas by component. Changes in Accumulated Other Comprehensive Income (Loss) by Component Calendar Years Three Months Fiscal Year (In thousands) 2020 2019 2018 2018 Beginning Balance $ 4,576 $ (7,106) $ (2,380) $ (4,911) Amortization of prior service credit (a)(b) (1,493) (649) (226) (675) Amortization of actuarial loss (a)(b)(c) 2,129 1,787 447 1,487 Actuarial gain (loss) arising during the period (a) (4,736) 14,672 (6,597) 4,620 Current-period other comprehensive income (loss) (4,100) 15,810 (6,376) 5,432 Income tax expense (benefit) related to pension and other post-retirement benefit plans (c) (1,101) 4,128 (1,650) 2,901 Ending Balance $ 1,577 $ 4,576 $ (7,106) $ (2,380) '(a) These accumulated other comprehensive income (loss) components are included in the computation of net periodic benefit cost. Refer to Note 10 — Pension and other post-retirement benefit plans for additional details. (b) Amortization of prior service cost and amortization of actuarial gain (loss) represent the amounts reclassified out of AOCI to “Other income (expense)” of statements of operations for the reported periods. (c) In the third quarter of 2020, Washington Gas made a voluntary change in accounting principle for calculating the MRVA used in the determination of net periodic pension and other post-retirement benefit plan costs. We retrospectively applied this change in accounting principle to all applicable prior period financial information presented herein as required.. Refer to Note 1 — Accounting Policies for further discussion. |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information Table | The following table details 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. Calendar Years Three Months Fiscal Year (In thousands) 2020 2019 2018 2018 CHANGES IN OPERATING ASSETS AND LIABILITIES Receivables $ 9,288 $ (16,494) $ (222,098) $ (13,557) (Receivables from) payables to associated companies — net (116,703) (7,362) 18,788 (43,161) Gas costs and other regulatory assets/liabilities — net (54,684) 26,374 40,028 27,994 Storage gas 17,395 15,952 (2,550) (8,626) Prepaid taxes 11,029 (7,383) (9,461) 5,618 Accounts payable and other accrued liabilities (11,014) (56,925) 61,029 18,378 Customer deposits and advance payments (1,309) (14,318) (29,288) 19,464 Accrued taxes 2,856 (4,670) 1,024 14,619 Other current assets 5,575 (13,591) (28) (14,605) Other current liabilities 1,424 (2,474) (121) 154 Deferred gas costs — net (16,764) 33,044 (51,936) (8,306) Deferred assets — other (16,911) 4,981 483 (5,895) Deferred liabilities — other 76,918 (28,004) (7,072) (20,606) Pension and other post-retirement benefits (19,030) (15,677) (638) (14,521) Changes in operating assets and liabilities $ (111,930) $ (86,547) $ (201,840) $ (43,050) SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION (a) Income taxes paid (refunded) — net $ (2,880) $ 15,623 $ 3,782 $ (2,983) Interest paid including interest for finance leases $ 62,883 $ 57,922 $ 4,982 $ 57,036 SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING ACTIVITIES (a) Extinguishment of project debt financing $ — $ (15,460) $ (53,018) $ (28,312) Capital expenditure accruals included in accounts payable and other accrued liabilities $ 74,121 $ 26,590 $ 33,245 $ 53,367 (a) Refer to Note 4 — Leases for additional supplemental cash flow disclosure related to leases. |
Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within Washington Gas’ balance sheets that sums to the total of such amounts shown on the statements of cash flows. (In thousands) December 31, September 30, 2020 2019 2018 2018 Cash and cash equivalents $ 1 $ 17,069 $ 6,082 $ 1 Restricted cash included in Current assets — Other 6,673 19,464 20,207 20,207 Restricted cash included in Deferred charges and other assets — Other 15,288 24,615 45,134 44,775 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 21,962 $ 61,148 $ 71,423 $ 64,983 |
Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within Washington Gas’ balance sheets that sums to the total of such amounts shown on the statements of cash flows. (In thousands) December 31, September 30, 2020 2019 2018 2018 Cash and cash equivalents $ 1 $ 17,069 $ 6,082 $ 1 Restricted cash included in Current assets — Other 6,673 19,464 20,207 20,207 Restricted cash included in Deferred charges and other assets — Other 15,288 24,615 45,134 44,775 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 21,962 $ 61,148 $ 71,423 $ 64,983 |
Comparative Data (Tables)
Comparative Data (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Comparative data | The following table presents financial information for the calendar years ended December 31, 2020, 2019 and 2018 and three months ended December 31, 2018 and 2017. Due to the change in accounting principle we made during the third quarter of 2020, we retrospectively applied the change in accounting principle to all applicable prior period financial information presented herein as required. Refer to Note 1 — Accounting Policies for further discussion. (In thousands) Calendar Years Ended Three Months Ended 2020 2019 2018 2018 2017 OPERATING REVENUES $ 1,234,315 $ 1,330,651 $ 1,272,694 $ 402,101 $ 377,470 OPERATING EXPENSES Utility cost of gas 328,244 461,574 438,939 156,641 124,745 Operation and maintenance 399,498 404,961 564,536 102,728 82,372 Depreciation and amortization 145,585 142,565 136,373 34,948 33,646 General taxes and other assessments 152,654 149,618 146,747 38,552 39,983 Total Operating Expenses 1,025,981 1,158,718 1,286,595 332,869 280,746 OPERATING INCOME 208,334 171,933 (13,901) 69,232 96,724 Other income (expense) — net 21,737 5,822 (4,052) 2,045 1,870 Interest expense 65,352 62,567 59,237 15,706 14,973 INCOME (LOSS) BEFORE INCOME TAXES 164,719 115,188 (77,190) 55,571 83,621 INCOME TAX EXPENSE (BENEFIT) 32,844 18,083 (42,591) 7,471 25,072 NET INCOME (LOSS) $ 131,875 $ 97,105 $ (34,599) $ 48,100 $ 58,549 Loss on preferred stock extinguishment — 556 — — — Dividends on preferred stock — 1,169 1,320 330 330 NET INCOME (LOSS) APPLICABLE TO COMMON STOCK $ 131,875 $ 95,380 $ (35,919) $ 47,770 $ 58,219 |
Quarterly Financial Informati_2
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | 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. During the third quarter of 2020, Washington Gas made a voluntary change in accounting principle for calculating the MRVA used in the determination of net periodic pension and other post-retirement benefit plan costs. We retrospectively applied the change in accounting principle to all applicable prior period financial information presented herein as required. The change in accounting principle increased both the net income (loss) and net income (loss) applicable to common stock of $1.7 million for each of the first, second, and third quarters in 2020, and $2.0 million for the fourth quarter of 2020. The change in accounting principle decreased both the net income (loss) and net income (loss) applicable to common stock of $0.7 million for each of the four quarters in 2019. Refer to Note 1 — Accounting Policies for further discussion. (In thousands) Quarters Ended March 31 June 30 September 30 December 31 2020 Operating revenues $ 501,735 $ 211,166 $ 143,383 $ 378,031 Operating income (loss) $ 171,167 $ (10,632) $ (35,928) $ 83,727 Net income (loss) $ 127,759 $ (14,600) $ (36,622) $ 55,338 Net income (loss) applicable to common stock $ 127,759 $ (14,600) $ (36,622) $ 55,338 2019 Operating revenues $ 593,653 $ 198,484 $ 122,305 $ 416,209 Operating income (loss) $ 152,580 $ (10,138) $ (73,050) $ 102,541 Net income (loss) $ 112,319 $ (21,268) $ (66,476) $ 72,530 Net income (loss) applicable to common stock $ 111,989 $ (21,598) $ (66,476) $ 71,465 |
Accounting Policies (Narrative)
Accounting Policies (Narrative) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2018USD ($) | Dec. 31, 2020USD ($)customer | Dec. 31, 2019USD ($) | Sep. 30, 2018USD ($) | Jan. 01, 2020USD ($) | Oct. 01, 2017USD ($) | Sep. 30, 2017USD ($) | ||
Accounting Policies [Table] [Line Items] | ||||||||
Number of customers (more than) | customer | 1,000,000 | |||||||
Net increase in common shareholder's equity | [1] | $ 1,571,530 | $ 1,855,925 | $ 1,578,592 | $ 1,452,723 | $ 1,172,377 | ||
Pretax AFUDC Rate | 5.84% | 2.33% | 3.48% | 2.42% | ||||
Composite depreciation and amortization rate | 2.78% | 2.80% | 2.96% | 2.77% | ||||
Impairment of oil and gas | $ 0 | $ 0 | $ 0 | $ 38,000 | ||||
Receivables | 238,200 | 259,100 | ||||||
Unbilled revenue | $ 128,800 | 160,500 | ||||||
Regulated revenue billing cycle | 19 days | |||||||
Duration of cost of gas recovered or refunded | 12 months | |||||||
Gross revenue taxes | $ 24,200 | $ 77,500 | 81,800 | $ 82,500 | ||||
Allowance for credit losses | $ 27,283 | 18,708 | ||||||
Dividend restrictions | 48.00% | |||||||
Cumulative effect of adoption | ||||||||
Accounting Policies [Table] [Line Items] | ||||||||
Net increase in common shareholder's equity | [1],[2] | (1,543) | ||||||
Allowance for credit losses | $ 1,500 | |||||||
Adjustment | ||||||||
Accounting Policies [Table] [Line Items] | ||||||||
Net increase in common shareholder's equity | $ 12,714 | $ 6,396 | ||||||
Adjustment | Change In Calculating MRVA | ||||||||
Accounting Policies [Table] [Line Items] | ||||||||
Increased retained earnings | $ 8,000 | |||||||
Accumulated other comprehensive income (loss) | 400 | |||||||
Net increase in common shareholder's equity | $ 7,600 | |||||||
[1] | In the third quarter of 2020, Washington Gas made a voluntary change in accounting principle for calculating the market-related value of assets used in the determination of net periodic pension and other post-retirement benefit plan costs. We retrospectively applied this change in accounting principle to all applicable prior period financial information presented herein as required. Refer to Note 1 — Accounting Policies for further discussion. | |||||||
[2] | Due to implementation of ASU 2016-13 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, see Note 2 — Credit Losses for further information. |
Accounting Policies (Change in
Accounting Policies (Change in Accounting Principle) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2020 | Dec. 31, 2019 | Oct. 01, 2017 | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||||||||||
Pension and other post retirement benefits | $ 3,880 | $ 44,078 | ||||||||||||||||||||||||||
Common shareholder’s equity | [1] | $ 1,855,925 | $ 1,578,592 | $ 1,578,592 | $ 1,571,530 | $ 1,571,530 | $ 1,172,377 | $ 1,578,592 | $ 1,578,592 | $ 1,571,530 | $ 1,452,723 | $ 1,172,377 | 1,855,925 | 1,578,592 | ||||||||||||||
Pension and other post-retirement benefits | 262,411 | 195,670 | ||||||||||||||||||||||||||
Deferred income taxes | 656,876 | 464,717 | ||||||||||||||||||||||||||
Other income (expense) — net | 2,045 | 1,870 | 21,737 | 5,822 | (4,052) | (4,226) | ||||||||||||||||||||||
Income tax expense (benefit) | 7,471 | 25,072 | 32,844 | 18,083 | (42,591) | (24,989) | ||||||||||||||||||||||
Net income (loss) | 55,338 | $ (36,622) | $ (14,600) | 127,759 | 72,530 | $ (66,476) | $ (21,268) | 112,319 | 48,100 | [1] | 58,549 | 131,875 | [1] | 97,105 | [1] | (34,599) | (24,150) | [1] | ||||||||||
Other comprehensive income (loss), net of taxes | (4,726) | [1] | (2,999) | [1] | 11,682 | [1] | 2,531 | |||||||||||||||||||||
Comprehensive income (loss) | 43,374 | 128,876 | 108,787 | (21,619) | ||||||||||||||||||||||||
Accrued/deferred pension and other post-retirement benefit cost | 1,119 | (8,400) | 2,190 | 7,761 | ||||||||||||||||||||||||
Deferred income taxes — net | 7,636 | 41,525 | 18,741 | (25,561) | ||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Beginning Balance | [1] | 1,578,592 | 1,571,530 | 1,452,723 | 1,172,377 | 1,578,592 | 1,571,530 | 1,172,377 | ||||||||||||||||||||
Net income | 55,338 | (36,622) | (14,600) | 127,759 | 72,530 | (66,476) | (21,268) | 112,319 | 48,100 | [1] | 58,549 | $ 131,875 | [1] | $ 97,105 | [1] | (34,599) | (24,150) | [1] | ||||||||||
Stock-based compensation | [1],[2] | (11,359) | ||||||||||||||||||||||||||
Accounting standards update | us-gaap:AccountingStandardsUpdate201613Member | us-gaap:AccountingStandardsUpdate201613Member | us-gaap:AccountingStandardsUpdate201802Member | |||||||||||||||||||||||||
Loss on preferred stock extinguishment | [1],[3] | $ (556) | ||||||||||||||||||||||||||
Common Stock | [1] | (24,237) | $ (75,000) | (100,000) | (89,568) | |||||||||||||||||||||||
Preferred Stock | [1] | (330) | (1,169) | [3] | (1,320) | |||||||||||||||||||||||
Ending Balance | [1] | 1,855,925 | 1,578,592 | 1,571,530 | 1,855,925 | 1,578,592 | 1,571,530 | 1,452,723 | $ 1,172,377 | |||||||||||||||||||
Cumulative effect of adoption | ||||||||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||||||||||
Common shareholder’s equity | [1],[4] | (1,543) | (1,543) | (1,543) | (1,543) | (1,543) | ||||||||||||||||||||||
Net income (loss) | 2,000 | 1,700 | 1,700 | 1,700 | 700 | 700 | 700 | 700 | ||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Beginning Balance | [1],[4] | (1,543) | (1,543) | |||||||||||||||||||||||||
Net income | 2,000 | $ 1,700 | $ 1,700 | 1,700 | 700 | $ 700 | $ 700 | 700 | ||||||||||||||||||||
Ending Balance | [1],[4] | (1,543) | (1,543) | |||||||||||||||||||||||||
Retained Earnings | ||||||||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||||||||||
Common shareholder’s equity | [1] | 603,596 | 548,264 | 548,264 | 552,884 | 552,884 | 638,708 | 603,596 | 548,264 | 552,884 | 529,351 | 638,708 | 603,596 | 548,264 | ||||||||||||||
Net income (loss) | 48,100 | [1] | 131,875 | 97,105 | [1] | (24,150) | [1] | |||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Beginning Balance | [1] | 548,264 | 552,884 | 529,351 | 638,708 | 548,264 | 552,884 | 638,708 | ||||||||||||||||||||
Net income | 48,100 | [1] | 131,875 | 97,105 | [1] | (24,150) | [1] | |||||||||||||||||||||
Stock-based compensation | [1],[2] | 4,197 | ||||||||||||||||||||||||||
Loss on preferred stock extinguishment | [1],[3] | (556) | ||||||||||||||||||||||||||
Common Stock | [1] | (24,237) | (75,000) | (100,000) | (89,568) | |||||||||||||||||||||||
Preferred Stock | [1] | (330) | (1,169) | [3] | (1,320) | |||||||||||||||||||||||
Ending Balance | [1] | 603,596 | 548,264 | 552,884 | 603,596 | 548,264 | 552,884 | 529,351 | 638,708 | |||||||||||||||||||
Retained Earnings | Cumulative effect of adoption | ||||||||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||||||||||
Common shareholder’s equity | [1] | (1,543) | [4] | (1,543) | [4] | 1,484 | [5] | (1,543) | [4] | (1,543) | [4] | 1,484 | [5] | 1,484 | [5] | (1,543) | [4] | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Beginning Balance | [1] | (1,543) | [4] | 1,484 | [5] | (1,543) | [4] | 1,484 | [5] | |||||||||||||||||||
Ending Balance | [1] | (1,543) | [4] | (1,543) | [4] | 1,484 | [5] | |||||||||||||||||||||
Accumulated Other Comprehensive Loss, Net of Taxes | ||||||||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||||||||||
Common shareholder’s equity | [1] | 1,577 | 4,576 | 4,576 | (7,106) | (2,380) | (4,911) | 4,576 | 4,576 | (7,106) | (2,380) | (4,911) | 1,577 | 4,576 | ||||||||||||||
Other comprehensive income (loss), net of taxes | (4,726) | [1] | (2,999) | [1] | 11,682 | [1] | 4,015 | |||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Beginning Balance | [1] | 4,576 | (7,106) | (2,380) | (4,911) | 4,576 | (7,106) | (4,911) | ||||||||||||||||||||
Ending Balance | [1] | 1,577 | 4,576 | (7,106) | 1,577 | 4,576 | (7,106) | (2,380) | (4,911) | |||||||||||||||||||
Accumulated Other Comprehensive Loss, Net of Taxes | Cumulative effect of adoption | ||||||||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||||||||||
Common shareholder’s equity | [1],[5] | (1,484) | (1,484) | (1,484) | ||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Beginning Balance | [1],[5] | (1,484) | (1,484) | |||||||||||||||||||||||||
Ending Balance | [1],[5] | (1,484) | ||||||||||||||||||||||||||
As Previously Reported | ||||||||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||||||||||
Pension and other post retirement benefits | (6,539) | 39,435 | ||||||||||||||||||||||||||
Common shareholder’s equity | 1,843,211 | 1,572,196 | 1,572,196 | 1,572,196 | 1,572,196 | 1,843,211 | 1,572,196 | |||||||||||||||||||||
Pension and other post-retirement benefits | 269,181 | 199,665 | ||||||||||||||||||||||||||
Deferred income taxes | 652,401 | 462,475 | ||||||||||||||||||||||||||
Other income (expense) — net | 3,494 | 12,195 | 9,478 | (7,592) | ||||||||||||||||||||||||
Income tax expense (benefit) | 7,847 | 30,367 | 19,032 | (25,863) | ||||||||||||||||||||||||
Net income (loss) | 49,173 | 124,810 | 99,812 | (26,642) | ||||||||||||||||||||||||
Other comprehensive income (loss), net of taxes | (4,797) | (2,252) | 11,536 | 2,692 | ||||||||||||||||||||||||
Comprehensive income (loss) | 44,376 | 122,558 | 111,348 | (23,950) | ||||||||||||||||||||||||
Accrued/deferred pension and other post-retirement benefit cost | (330) | 1,142 | (1,466) | 11,127 | ||||||||||||||||||||||||
Deferred income taxes — net | 8,012 | 39,048 | 19,690 | (26,435) | ||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Beginning Balance | 1,572,196 | 1,572,196 | ||||||||||||||||||||||||||
Net income | 49,173 | 124,810 | 99,812 | (26,642) | ||||||||||||||||||||||||
Ending Balance | 1,843,211 | 1,572,196 | 1,843,211 | 1,572,196 | ||||||||||||||||||||||||
As Previously Reported | Retained Earnings | ||||||||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||||||||||
Common shareholder’s equity | 589,802 | 541,535 | 541,535 | 543,448 | 543,448 | 630,691 | 589,802 | 541,535 | 543,448 | 518,842 | 630,691 | 589,802 | 541,535 | |||||||||||||||
Net income (loss) | 49,173 | 124,810 | 99,812 | (26,642) | ||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Beginning Balance | 541,535 | 543,448 | 518,842 | 630,691 | 541,535 | 543,448 | 630,691 | |||||||||||||||||||||
Net income | 49,173 | 124,810 | 99,812 | (26,642) | ||||||||||||||||||||||||
Stock-based compensation | 4,197 | |||||||||||||||||||||||||||
Loss on preferred stock extinguishment | (556) | |||||||||||||||||||||||||||
Common Stock | (24,237) | (75,000) | (100,000) | (89,568) | ||||||||||||||||||||||||
Preferred Stock | (330) | (1,169) | (1,320) | |||||||||||||||||||||||||
Ending Balance | 589,802 | 541,535 | 543,448 | 589,802 | 541,535 | 543,448 | 518,842 | 630,691 | ||||||||||||||||||||
As Previously Reported | Retained Earnings | Cumulative effect of adoption | ||||||||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||||||||||
Common shareholder’s equity | (1,543) | (1,543) | 1,484 | (1,543) | (1,543) | 1,484 | 1,484 | (1,543) | ||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Beginning Balance | (1,543) | 1,484 | (1,543) | 1,484 | ||||||||||||||||||||||||
Ending Balance | (1,543) | (1,543) | 1,484 | |||||||||||||||||||||||||
As Previously Reported | Accumulated Other Comprehensive Loss, Net of Taxes | ||||||||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||||||||||
Common shareholder’s equity | 2,657 | 4,909 | 4,909 | (6,627) | (6,627) | (4,522) | 2,657 | 4,909 | (6,627) | (1,830) | (4,522) | 2,657 | 4,909 | |||||||||||||||
Other comprehensive income (loss), net of taxes | (4,797) | (2,252) | 11,536 | 4,176 | ||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Beginning Balance | 4,909 | (6,627) | (1,830) | (4,522) | 4,909 | (6,627) | (4,522) | |||||||||||||||||||||
Ending Balance | 2,657 | 4,909 | (6,627) | 2,657 | 4,909 | (6,627) | (1,830) | (4,522) | ||||||||||||||||||||
As Previously Reported | Accumulated Other Comprehensive Loss, Net of Taxes | Cumulative effect of adoption | ||||||||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||||||||||
Common shareholder’s equity | (1,484) | (1,484) | (1,484) | |||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Beginning Balance | (1,484) | (1,484) | ||||||||||||||||||||||||||
Ending Balance | (1,484) | |||||||||||||||||||||||||||
Adjustment | ||||||||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||||||||||
Pension and other post retirement benefits | 10,419 | 4,643 | ||||||||||||||||||||||||||
Common shareholder’s equity | 12,714 | 6,396 | 6,396 | 6,396 | 6,396 | 12,714 | 6,396 | |||||||||||||||||||||
Pension and other post-retirement benefits | (6,770) | (3,995) | ||||||||||||||||||||||||||
Deferred income taxes | 4,475 | 2,242 | ||||||||||||||||||||||||||
Other income (expense) — net | (1,449) | 9,542 | (3,656) | 3,366 | ||||||||||||||||||||||||
Income tax expense (benefit) | (376) | 2,477 | (949) | 874 | ||||||||||||||||||||||||
Net income (loss) | (1,073) | 7,065 | (2,707) | 2,492 | ||||||||||||||||||||||||
Other comprehensive income (loss), net of taxes | 71 | (747) | 146 | (161) | ||||||||||||||||||||||||
Comprehensive income (loss) | (1,002) | 6,318 | (2,561) | 2,331 | ||||||||||||||||||||||||
Accrued/deferred pension and other post-retirement benefit cost | 1,449 | (9,542) | 3,656 | (3,366) | ||||||||||||||||||||||||
Deferred income taxes — net | (376) | 2,477 | (949) | 874 | ||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Beginning Balance | 6,396 | 6,396 | ||||||||||||||||||||||||||
Net income | (1,073) | 7,065 | (2,707) | 2,492 | ||||||||||||||||||||||||
Ending Balance | 12,714 | 6,396 | 12,714 | 6,396 | ||||||||||||||||||||||||
Adjustment | Change In Calculating MRVA | ||||||||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||||||||||
Common shareholder’s equity | $ 7,600 | |||||||||||||||||||||||||||
Adjustment | Retained Earnings | ||||||||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||||||||||
Common shareholder’s equity | 13,794 | 6,729 | 6,729 | 9,436 | 9,436 | 8,017 | 13,794 | 6,729 | 9,436 | 10,509 | 8,017 | 13,794 | 6,729 | |||||||||||||||
Net income (loss) | (1,073) | 7,065 | (2,707) | 2,492 | ||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Beginning Balance | 6,729 | 9,436 | 10,509 | 8,017 | 6,729 | 9,436 | 8,017 | |||||||||||||||||||||
Net income | (1,073) | 7,065 | (2,707) | 2,492 | ||||||||||||||||||||||||
Ending Balance | 13,794 | 6,729 | 9,436 | 13,794 | 6,729 | 9,436 | 10,509 | 8,017 | ||||||||||||||||||||
Adjustment | Accumulated Other Comprehensive Loss, Net of Taxes | ||||||||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||||||||||
Common shareholder’s equity | (1,080) | (333) | (333) | (479) | (479) | (389) | (1,080) | (333) | (479) | (550) | (389) | $ (1,080) | $ (333) | |||||||||||||||
Other comprehensive income (loss), net of taxes | 71 | (747) | 146 | (161) | ||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||
Beginning Balance | $ (333) | $ (479) | (550) | $ (389) | (333) | (479) | (389) | |||||||||||||||||||||
Ending Balance | $ (1,080) | $ (333) | $ (479) | $ (1,080) | $ (333) | $ (479) | $ (550) | $ (389) | ||||||||||||||||||||
[1] | In the third quarter of 2020, Washington Gas made a voluntary change in accounting principle for calculating the market-related value of assets used in the determination of net periodic pension and other post-retirement benefit plan costs. We retrospectively applied this change in accounting principle to all applicable prior period financial information presented herein as required. Refer to Note 1 — Accounting Policies for further discussion. | |||||||||||||||||||||||||||
[2] | Stock-based compensation is based on the stock awards of WGL that are allocated to Washington Gas for its pro-rata share. We recorded $4.2 million accumulative adjustments to retained earnings for the fiscal year 2018 due to the adoption of Accounting Standards Update (ASU) 2016-09. We accelerated the vesting of stock-based awards upon the consummation of the Merger with AltaGas during the fourth quarter of fiscal year ended September 2018, which reduced the paid-in capital. See Note 11 — Stock-Based Compensation for a further discussion. | |||||||||||||||||||||||||||
[3] | On December 20, 2019, Washington Gas redeemed all outstanding shares of its preferred stock for the respective call price per share for a total amount of $28.7 million, plus all accrued and unpaid dividends. A loss of $0.6 million was recorded in "Loss on preferred stock extinguishment" on Washington Gas' statements of operations. Following the redemption, Washington Gas no longer pays quarterly preferred stock dividends. Since Washington Gas’ preferred shares had voting rights, as a result of this redemption, Washington Gas became an indirect wholly owned subsidiary of AltaGas | |||||||||||||||||||||||||||
[4] | Due to implementation of ASU 2016-13 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, see Note 2 — Credit Losses for further information. | |||||||||||||||||||||||||||
[5] | Amount related to the adoption of ASU 2018-02. Washington Gas reclassified a credit of $1.5 million from Accumulated other comprehensive income to Retained earnings at September 30, 2018. |
Accounting Policies (Property,
Accounting Policies (Property, Plant and Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accounting Policies [Abstract] | ||
Distribution, transmission and storage | $ 5,502,600 | $ 5,148,100 |
Distribution, transmission and storage, percentage | 86.50% | 86.30% |
General, miscellaneous, intangibles and finance leases | $ 547,900 | $ 543,200 |
General, miscellaneous, intangibles and finance leases, percentage | 8.60% | 9.10% |
Construction work in progress (CWIP) | $ 312,900 | $ 271,600 |
Construction work in progress (CWIP), percentage | 4.90% | 4.60% |
Total | $ 6,363,392 | $ 5,962,866 |
Total regulated utility segment, percentage | 100.00% | 100.00% |
Accounting Policies (Changes in
Accounting Policies (Changes in Asset Retirement Obligations) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2018 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||||
Asset retirement obligation, current | $ 7.3 | $ 5 | $ 4.8 | $ 7.3 |
Changes in Asset Retirement Obligations | ||||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||||
Asset retirement obligations at beginning of year | 305.5 | 211.6 | 308.1 | 298.9 |
Liabilities incurred in the period | 0 | 1.7 | 1.7 | 1.4 |
Revaluation of asset retirement obligation | 0 | 0 | (101) | 0 |
Liabilities settled in the period | 0 | (4.8) | (7.4) | (7.3) |
Accretion expense | 2.6 | 8.7 | 10.2 | 12.5 |
Asset retirement obligations at the end of the year | $ 308.1 | $ 217.2 | $ 211.6 | $ 305.5 |
Credit Losses - Narrative (Deta
Credit Losses - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2017 | Jan. 01, 2020 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Accounting standards update | us-gaap:AccountingStandardsUpdate201613Member | us-gaap:AccountingStandardsUpdate201613Member | us-gaap:AccountingStandardsUpdate201802Member | |
Allowance for credit losses | $ 27,283 | $ 18,708 | ||
Provide direct assistance | 7,700 | |||
Recorded to regulatory asset due to COVID-19 | 6,300 | |||
Cumulative effect of adoption | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Allowance for credit losses | $ 1,500 | |||
Balance, beginning of period | $ 1,500 | |||
Long term receivable from trading partner | $ (100) |
Credit Losses - Rollforward of
Credit Losses - Rollforward of Allowance Accounts (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Accounting standards update | us-gaap:AccountingStandardsUpdate201613Member | us-gaap:AccountingStandardsUpdate201613Member | us-gaap:AccountingStandardsUpdate201802Member | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Provision | $ 5,940 | $ 15,958 | $ 17,266 | $ 20,224 | |
Recorded to regulatory asset due to COVID-19 | 6,300 | ||||
Asset Optimization | |||||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Balance, beginning of period | 0 | ||||
Provision | 0 | ||||
Recorded to regulatory asset due to COVID-19 | 0 | ||||
Write offs | 0 | ||||
Recoveries | 0 | ||||
Balance, end of period | 100 | 0 | |||
Account Receivables And Unbilled Revenue | |||||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Balance, beginning of period | 18,700 | ||||
Provision | 15,700 | ||||
Recorded to regulatory asset due to COVID-19 | 6,300 | ||||
Write offs | (16,900) | ||||
Recoveries | 2,100 | ||||
Balance, end of period | 27,300 | 18,700 | |||
Cumulative effect of adoption | |||||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Balance, end of period | 1,500 | ||||
Cumulative effect of adoption | Asset Optimization | |||||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Balance, beginning of period | 100 | ||||
Balance, end of period | 100 | ||||
Cumulative effect of adoption | Account Receivables And Unbilled Revenue | |||||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Balance, beginning of period | $ 1,400 | ||||
Balance, end of period | $ 1,400 |
Revenue from Contracts With C_3
Revenue from Contracts With Customers - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | $ 391.5 | $ 1,159.4 | $ 1,298.6 |
Other sources of revenue | 10.6 | 74.9 | 32.1 |
Total Operating Revenue | 402.1 | 1,234.3 | 1,330.7 |
Gas and transportation sales | Gas sold and delivered | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 303.2 | 856 | 975.8 |
Gas and transportation sales | Gas delivered for others | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 74.3 | 265 | 270.7 |
Gas and transportation sales | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 12.5 | 35 | 46.5 |
Other revenues | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 1.5 | 3.4 | 5.6 |
Revenue from alternative revenue programs | |||
Disaggregation of Revenue [Line Items] | |||
Other sources of revenue | 9.1 | 69.8 | 19.6 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Other sources of revenue | $ 1.5 | $ 5.1 | $ 12.5 |
Revenue From Contracts With C_4
Revenue From Contracts With Customers - Contract Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | |
Revenue from Contract with Customer [Abstract] | |||
Unbilled revenues | $ 112.7 | $ 116.3 | |
Contract assets at January 1 | 16.1 | 44.2 | $ 85.3 |
Contract assets at December 31 | 16.1 | 44.2 | $ 85.3 |
Increase (decrease) in contract assets | $ (28.1) | $ (41.1) |
Leases - Narrative (Details)
Leases - Narrative (Details) | Dec. 31, 2020 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Operating lease, term of contract | 1 year |
Lessee renewal term | 1 year |
Lessor renewal term | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating lease, term of contract | 21 years |
Lessee renewal term | 5 years |
Operating lease, lessor, term of contract | 80 years |
Lessor renewal term | 5 years |
Leases - Maturity of Operating
Leases - Maturity of Operating Lease Liabilities (Details) $ in Millions | Dec. 31, 2020USD ($) |
Operating Leases | |
2021 | $ 5.8 |
2022 | 5.7 |
2023 | 5.8 |
2024 | 5.9 |
2025 | 5.4 |
Thereafter | 41.2 |
Total lease payments | 69.8 |
Less: Interest | (13.2) |
Present Value of Lease Liabilities | 56.6 |
Finance Leases | |
2021 | 0.1 |
2022 | 0.1 |
2023 | 0.1 |
2024 | 0.1 |
2025 | 0.1 |
Thereafter | 0 |
Total lease payments | 0.5 |
Less: Interest | 0 |
Present Value of Lease Liabilities | $ 0.5 |
Leases -Components of Lease Exp
Leases -Components of Lease Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2018 | |
Operating Lease Cost [Abstract] | ||||
Rent expense | $ 5.3 | $ 5.2 | ||
Variable lease cost | 1.9 | 1.9 | ||
Total Operating lease cost | $ 7.2 | $ 7.1 | ||
Rent expense | $ 0.6 | $ 5.8 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information Related to Operating Leases (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 6.2 | $ 2.9 |
Operating leases | 1.6 | $ 1.5 |
Finance leases | $ 0.4 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Finance Leases [Abstract] | ||
Property, plant and equipment, at original cost | $ 0.4 | |
Accumulated depreciation and amortization | 0 | |
Net property, plant and equipment | 0.4 | |
Current finance lease liability included in "Current liabilities-Other" | 0.1 | |
Non-current finance lease liability included in "Long-term Debt" | $ 0.3 | $ 0 |
Weighted average remaining lease term | ||
Operating leases | 12 years 4 months 24 days | 13 years 3 months 18 days |
Finance leases | 4 years 10 months 24 days | |
Weighted average discount rate | ||
Operating leases | 3.27% | 3.32% |
Finance leases | 1.69% | |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization | us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesCurrent | us-gaap:OtherLiabilitiesCurrent |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:LongTermDebtNoncurrent | us-gaap:LongTermDebtNoncurrent |
Leases - Maturity of Operatin_2
Leases - Maturity of Operating Lease Payments (Lessor) (Details) $ in Millions | Dec. 31, 2020USD ($) |
Leases [Abstract] | |
2021 | $ 1.1 |
2022 | 0.8 |
2023 | 0.8 |
2024 | 0.7 |
2025 | 0.6 |
Thereafter | 57.3 |
Total lease payments | $ 61.3 |
Leases - Operating Lease Revenu
Leases - Operating Lease Revenue Recognized (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Lessor, Lease, Description [Line Items] | ||
Leasing revenue | $ 1.1 | $ 1.1 |
Operating revenue | ||
Lessor, Lease, Description [Line Items] | ||
Leasing revenue | 0.7 | 0.7 |
Other income (expense), net | ||
Lessor, Lease, Description [Line Items] | ||
Leasing revenue | $ 0.4 | $ 0.4 |
Regulated Operations (Details)
Regulated Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2020 | |
Public Utilities, General Disclosures [Line Items] | |||
Gas costs and other regulatory assets | $ 9,894 | $ 31,376 | |
Fair value of derivatives | 0 | 0 | |
Regulatory assets, noncurrent | 84,886 | 99,793 | |
Loss contingency, receivable | 4,700 | 5,100 | |
Gas costs due from/to customers | |||
Public Utilities, General Disclosures [Line Items] | |||
Gas costs and other regulatory assets | 5,900 | 10,900 | |
Regulatory liabilities, current | 44,200 | 47,300 | |
Interruptible Sharing | |||
Public Utilities, General Disclosures [Line Items] | |||
Gas costs and other regulatory assets | 2,100 | 700 | |
Regulatory liabilities, current | 300 | 1,000 | |
Revenue normalization mechanisms for Maryland and Virginia | |||
Public Utilities, General Disclosures [Line Items] | |||
Gas costs and other regulatory assets | 0 | 15,100 | |
Regulatory liabilities, current | 4,000 | 0 | |
Accelerated replacement recovery mechanisms | |||
Public Utilities, General Disclosures [Line Items] | |||
Gas costs and other regulatory assets | 1,900 | 4,700 | |
Regulatory liabilities, current | 300 | 300 | |
Rates subject to refund | |||
Public Utilities, General Disclosures [Line Items] | |||
Gas costs and other regulatory assets | 0 | 0 | |
Regulatory liabilities, current | 31,100 | 0 | |
Virginia coronavirus relief fund | |||
Public Utilities, General Disclosures [Line Items] | |||
Gas costs and other regulatory assets | 0 | 0 | |
Regulatory liabilities, current | 0 | 7,700 | |
Tax cuts and jobs act rate refund | |||
Public Utilities, General Disclosures [Line Items] | |||
Gas costs and other regulatory assets | 0 | 0 | |
Regulatory liabilities, current | 25,500 | 15,900 | |
Total current | |||
Public Utilities, General Disclosures [Line Items] | |||
Gas costs and other regulatory assets | 9,900 | 31,400 | |
Regulatory liabilities, current | 105,400 | 72,200 | |
Accrued asset removal costs | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory assets, noncurrent | 0 | 0 | |
Regulatory liability, noncurrent | 254,400 | 239,300 | |
Deferred gas costs | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory assets, noncurrent | 98,700 | 109,000 | |
Regulatory liability, noncurrent | 0 | 0 | |
Pension | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory assets, noncurrent | 44,100 | 3,900 | |
Regulatory liability, noncurrent | 0 | 0 | |
Pension and other post-retirement benefits | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory assets, noncurrent | 0 | 0 | |
Regulatory liability, noncurrent | 195,700 | 262,400 | |
Total pension and other post-retirement benefits | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory assets, noncurrent | 44,100 | 3,900 | |
Regulatory liability, noncurrent | 195,700 | 262,400 | |
Income tax-related amounts due from/to customers | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory assets, noncurrent | 26,000 | 29,800 | |
Regulatory liability, noncurrent | 400,600 | 373,500 | |
Losses/gains on issuance and extinguishments of debt and interest-rate derivative instruments | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory assets, noncurrent | 13,900 | 13,000 | |
Regulatory liability, noncurrent | 1,200 | 1,100 | |
Rights-of-way fees | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory assets, noncurrent | 0 | 0 | |
Regulatory liability, noncurrent | 2,400 | 1,600 | |
Business process outsourcing and related costs | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory assets, noncurrent | 1,900 | 600 | |
Regulatory liability, noncurrent | 0 | 0 | |
Non-retirement post-employee benefits | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory assets, noncurrent | 14,900 | 16,500 | |
Regulatory liability, noncurrent | 0 | 0 | |
Deferred distribution integrity management | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory assets, noncurrent | 2,000 | 700 | |
Regulatory liability, noncurrent | 0 | 0 | |
Recoverable portion of abandoned liquid natural gas facility | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory assets, noncurrent | 2,300 | 2,000 | |
Regulatory liability, noncurrent | 0 | 0 | |
Environmental response costs | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory assets, noncurrent | 7,000 | 7,400 | |
Regulatory liability, noncurrent | 0 | 0 | |
Energy efficiency program-Maryland | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory assets, noncurrent | 9,300 | 14,300 | |
Regulatory liability, noncurrent | 0 | 0 | |
COVID-19 related costs | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory assets, noncurrent | 0 | 7,900 | |
Regulatory liability, noncurrent | 0 | 0 | |
Other regulatory items | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory assets, noncurrent | 7,600 | 7,600 | |
Regulatory liability, noncurrent | 500 | 800 | |
Total other | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory assets, noncurrent | 84,900 | 99,800 | |
Regulatory liability, noncurrent | 404,700 | 377,000 | |
Total deferred | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory assets, noncurrent | 227,700 | 212,700 | |
Regulatory liability, noncurrent | 854,800 | 878,700 | |
Total | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory assets | 237,600 | 244,100 | |
Regulatory liabilities | 960,200 | $ 950,900 | |
Asset impairment for regulatory action | |||
Public Utilities, General Disclosures [Line Items] | |||
Regulatory asset, noncurrent impairment | $ 2,500 | $ 2,000 |
Accounts Payable and Other Ac_3
Accounts Payable and Other Accrued Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts Payable and Accrued Liabilities [Abstract] | ||
Accounts payable — trade | $ 201.2 | $ 154.3 |
Employee benefits and payroll accruals | 22.3 | 39.2 |
Wages payable | 19.5 | 22.2 |
Accrued interest | 18.4 | 17.3 |
Other accrued liabilities | 31.1 | 34.4 |
Total | 292.5 | 267.4 |
Antero contract | ||
Loss Contingencies [Line Items] | ||
Loss contingency accrual | $ 12.5 | $ 11.7 |
Short-Term Debt (Details)
Short-Term Debt (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Short Term Debt [Line Items] | ||
Less: Commercial Paper outstanding | $ (285,000,000) | $ (399,500,000) |
Commercial paper | 285,000,000 | 399,500,000 |
Credit facility | ||
Short Term Debt [Line Items] | ||
Unsecured revolving credit facility, expires July 19, 2024 | 450,000,000 | 450,000,000 |
Less: Commercial Paper outstanding | (285,000,000) | (400,000,000) |
Net committed credit available | $ 165,000,000 | $ 50,000,000 |
Weighted average interest rate | 0.31% | 2.04% |
Revolving credit facility additional borrowings | $ 100,000,000 | |
Revolving credit facility maximum borrowing capacity | 550,000,000 | |
Outstanding bank loans | 0 | $ 0 |
Commercial paper | 285,000,000 | 400,000,000 |
Long-term debt | ||
Short Term Debt [Line Items] | ||
Less: Commercial Paper outstanding | (100,000,000) | (100,000,000) |
Commercial paper | 100,000,000 | 100,000,000 |
Note payable and project financing | ||
Short Term Debt [Line Items] | ||
Less: Commercial Paper outstanding | (185,000,000) | (299,500,000) |
Commercial paper | $ 185,000,000 | $ 299,500,000 |
Long Term Debt (Details)
Long Term Debt (Details) - USD ($) | Dec. 10, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Nov. 01, 2019 | Sep. 13, 2019 | Dec. 05, 2018 |
Long Term Debt [LIne Items] | ||||||
Total Long-Term Debt | $ 1,546,000,000 | $ 1,446,000,000 | ||||
Unamortized debt premium (discount) | 12,500,000 | (4,300,000) | ||||
Unamortized debt expense | (11,600,000) | (10,800,000) | ||||
Non-current finance lease liability included in "Long-term Debt" | 300,000 | 0 | ||||
Total Carrying Amount of Long-Term Debt | $ 1,547,200,000 | $ 1,430,900,000 | ||||
Weighted average interest rate | 4.46% | 4.52% | ||||
Basis spread | 0.25% | |||||
Issuances | ||||||
Long Term Debt [LIne Items] | ||||||
Principal | $ 100,000,000 | $ 300,000,000 | ||||
Interest rate | 3.65% | 3.65% | ||||
Note rate | 2.84% | 3.72% | ||||
Retirements | ||||||
Long Term Debt [LIne Items] | ||||||
Principal | $ 50,000,000 | $ 50,000,000 | ||||
Interest rate | 4.76% | 7.46% | ||||
Note rate | 4.76% | 7.46% | ||||
Due in 2023 | ||||||
Long Term Debt [LIne Items] | ||||||
Total Long-Term Debt | $ 20,000,000 | $ 20,000,000 | ||||
Note rate | 6.65% | |||||
Due in 2025 | ||||||
Long Term Debt [LIne Items] | ||||||
Total Long-Term Debt | $ 40,500,000 | 40,500,000 | ||||
Note rate | 5.44% | |||||
Due in 2026 | ||||||
Long Term Debt [LIne Items] | ||||||
Total Long-Term Debt | $ 53,000,000 | 53,000,000 | ||||
Due in 2027 | ||||||
Long Term Debt [LIne Items] | ||||||
Total Long-Term Debt | 72,000,000 | 72,000,000 | ||||
Due in 2028 | ||||||
Long Term Debt [LIne Items] | ||||||
Total Long-Term Debt | 52,000,000 | 52,000,000 | ||||
Due in 2030 | ||||||
Long Term Debt [LIne Items] | ||||||
Total Long-Term Debt | $ 8,500,000 | 8,500,000 | ||||
Note rate | 7.50% | |||||
Due in 2036 | ||||||
Long Term Debt [LIne Items] | ||||||
Total Long-Term Debt | $ 50,000,000 | 50,000,000 | ||||
Due in 2040 | ||||||
Long Term Debt [LIne Items] | ||||||
Total Long-Term Debt | $ 75,000,000 | 75,000,000 | ||||
Note rate | 5.21% | |||||
Due in 2043 | ||||||
Long Term Debt [LIne Items] | ||||||
Total Long-Term Debt | $ 75,000,000 | 75,000,000 | ||||
Note rate | 5.00% | |||||
Due in 2044 | ||||||
Long Term Debt [LIne Items] | ||||||
Total Long-Term Debt | $ 150,000,000 | 150,000,000 | ||||
Due in 2046 | ||||||
Long Term Debt [LIne Items] | ||||||
Total Long-Term Debt | $ 450,000,000 | 450,000,000 | ||||
Note rate | 3.80% | |||||
Due in 2049 | ||||||
Long Term Debt [LIne Items] | ||||||
Total Long-Term Debt | $ 400,000,000 | 300,000,000 | ||||
Note rate | 3.65% | |||||
Commercial Paper | ||||||
Long Term Debt [LIne Items] | ||||||
Total Long-Term Debt | $ 100,000,000 | 100,000,000 | ||||
Total Carrying Amount of Long-Term Debt | $ 100,000,000 | 100,000,000 | ||||
Maximum | Due in 2026 | ||||||
Long Term Debt [LIne Items] | ||||||
Note rate | 6.82% | |||||
Maximum | Due in 2027 | ||||||
Long Term Debt [LIne Items] | ||||||
Note rate | 6.57% | |||||
Maximum | Due in 2028 | ||||||
Long Term Debt [LIne Items] | ||||||
Note rate | 6.85% | |||||
Maximum | Due in 2036 | ||||||
Long Term Debt [LIne Items] | ||||||
Note rate | 5.78% | |||||
Maximum | Due in 2044 | ||||||
Long Term Debt [LIne Items] | ||||||
Note rate | 4.24% | |||||
Minimum | Due in 2026 | ||||||
Long Term Debt [LIne Items] | ||||||
Note rate | 6.62% | |||||
Minimum | Due in 2027 | ||||||
Long Term Debt [LIne Items] | ||||||
Note rate | 6.40% | |||||
Minimum | Due in 2028 | ||||||
Long Term Debt [LIne Items] | ||||||
Note rate | 6.57% | |||||
Minimum | Due in 2036 | ||||||
Long Term Debt [LIne Items] | ||||||
Note rate | 5.70% | |||||
Minimum | Due in 2044 | ||||||
Long Term Debt [LIne Items] | ||||||
Note rate | 4.22% | |||||
Mortgage | ||||||
Long Term Debt [LIne Items] | ||||||
Mortgage debt outstanding | $ 0 | $ 0 | ||||
Medium-term Notes | ||||||
Long Term Debt [LIne Items] | ||||||
Additional borrowing capacity | $ 325,000,000 | |||||
Principal | $ 100,000,000 | |||||
Interest rate | 3.65% |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2018 | |
Income Taxes [Line Items] | ||||
Receivables from associated companies | $ 112,200 | $ 5,500 | ||
Payables to associated companies | 600 | 600 | ||
Deferred payroll tax | 7,900 | |||
Net operating loss | 63,444 | 132,774 | ||
Decrease in UTB | $ 7,700 | (15,400) | $ 9,400 | $ 4,400 |
State and Local Jurisdiction | ||||
Income Taxes [Line Items] | ||||
Operating Loss Carryforwards | 40,800 | |||
Domestic Tax Authority | ||||
Income Taxes [Line Items] | ||||
Net operating loss | 22,600 | |||
Operating Loss Carryforwards | $ 108,000 |
Income Taxes (Components of Inc
Income Taxes (Components of Income Tax Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | |
Current: | ||||||
Federal | $ 0 | $ (6,660) | $ 0 | $ 0 | ||
State | 0 | (1,470) | 0 | 1,274 | ||
Total current | 0 | (8,130) | 0 | 1,274 | ||
Deferred: | ||||||
Federal | 8,746 | 27,704 | 11,496 | (35,668) | ||
State | (1,110) | 13,821 | 7,245 | 10,107 | ||
Total deferred | 7,636 | 41,525 | 18,741 | (25,561) | ||
Amortization of investment tax credits | (165) | (551) | (658) | (702) | ||
Total income tax expense (benefit) and effective tax rate | 7,471 | $ 25,072 | $ 32,844 | $ 18,083 | $ (42,591) | (24,989) |
Re measurement of deferred income taxes | ||||||
Deferred: | ||||||
Total income tax expense (benefit) and effective tax rate | $ 1,200 | $ 7,000 |
Income Taxes (Tax Rate Reconcil
Income Taxes (Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||||
Income taxes at statutory federal tax rate | $ 11,670 | $ 34,591 | $ 24,189 | $ (10,319) | ||
Statutory federal income tax rate (%) | 21.00% | 21.00% | 21.00% | 21.00% | ||
Plant basis difference | $ (4,261) | $ 0 | $ 699 | $ 1,079 | ||
Plant basis difference (%) | (7.67%) | 0.00% | 0.61% | (2.20%) | ||
Allowance for funds used during construction | $ (520) | $ 0 | $ 0 | $ (70) | ||
Allowance for funds used during construction (%) | (0.94%) | 0.00% | 0.00% | 0.14% | ||
Amortization of investment tax credits | $ (165) | $ (551) | $ (658) | $ (703) | ||
Amortization of investment tax credits (%) | (0.30%) | (0.33%) | (0.57%) | 1.43% | ||
Amortization of excess deferred taxes | $ (2,431) | $ (12,189) | $ (18,020) | $ (9,798) | ||
Amortization of excess deferred taxes (%) | (4.37%) | (7.40%) | (15.64%) | 19.94% | ||
Cost of removal | $ (28) | $ 0 | $ 5,837 | $ (1,561) | ||
Cost of removal (%) | (0.05%) | 0.00% | 5.07% | 3.18% | ||
State income taxes-net of federal benefit (b) | $ 2,665 | $ 10,631 | $ 6,259 | $ (2,492) | ||
State income taxes-net of federal benefit (%) | 4.80% | 6.45% | 5.43% | 5.07% | ||
Re-measurement due to Tax Act 2017 | $ 1,243 | $ 0 | $ 0 | $ 7,031 | ||
Re-measurement due to tax act 2017 (%) | 2.23% | 0.00% | 0.00% | (14.31%) | ||
ASU 2016-09 adoption | $ 0 | $ 0 | $ 0 | $ (3,223) | ||
ASU 2016-09 adoption (%) | 0.00% | 0.00% | 0.00% | 6.56% | ||
Return to provision adjustment | $ 0 | $ (5) | $ (1,666) | $ (4,669) | ||
Return to provision adjustment (%) | 0.00% | 0.00% | (1.45%) | 9.50% | ||
Other items-net | $ (702) | $ 367 | $ 1,443 | $ (264) | ||
Other items-net (%) | (1.26%) | 0.22% | 1.25% | 0.54% | ||
Total income tax expense (benefit) and effective tax rate | $ 7,471 | $ 25,072 | $ 32,844 | $ 18,083 | $ (42,591) | $ (24,989) |
Total income tax expense (benefit) and effective tax rate (%) | 13.44% | 19.94% | 15.70% | 50.85% |
Income Taxes (Components of Acc
Income Taxes (Components of Accumulated Deferred Tax Assets (Liabilities)) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred income tax assets: | ||
Pensions | $ 3,048 | $ 15,718 |
Uncollectible accounts | 4,739 | 4,856 |
Inventory overheads | 3,911 | 3,504 |
Employee compensation and benefits | 30,604 | 30,461 |
Derivatives | 5,695 | 6,522 |
Income taxes recoverable through future rates | 145,567 | 130,946 |
Net operating loss | 63,444 | 132,774 |
Other | 4,810 | 0 |
Total assets | 261,818 | 324,781 |
Deferred income tax liabilities: | ||
Other post-retirement benefits (a) | 115,836 | 88,031 |
Accelerated depreciation and other plant related items | 787,035 | 691,134 |
Losses/gains on reacquired debt | 0 | 499 |
Deferred gas costs | 15,823 | 9,831 |
Other | 0 | 3 |
Total liabilities | 918,694 | 789,498 |
Net accumulated deferred income tax assets (liabilities) | $ (656,876) | $ (464,717) |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | 15 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2018 | Dec. 31, 2019 | |
Unrecognized Tax Benefits | |||||
Total unrecognized tax benefits at beginning of the periods | $ 43,567 | $ 26,459 | $ 35,906 | $ 48,009 | $ 43,567 |
Increases resulting from current period tax positions | 2,574 | 0 | 10,947 | 0 | |
Decreases resulting from prior period tax positions | (10,235) | (15,394) | (9,447) | (15,389) | |
Total unrecognized tax benefits at end of the periods | $ 35,906 | $ 11,065 | $ 26,459 | $ 43,567 | $ 26,459 |
Pension and Other Post-retire_3
Pension and Other Post-retirement Benefit Plans (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2026 | Dec. 31, 2025 | |
Defined Benefit Plan Disclosure [Line Items] | |||||||
Total matching contributions | $ 1.1 | $ 5.6 | $ 5.2 | $ 5 | |||
Total supplemental contributions | 0.7 | $ 3.8 | $ 3.2 | 2.7 | |||
Reclassified amount of net periodic benefit income due to adoption of ASU 2017-07 | 11.3 | ||||||
Healthcare trend rate | 6.25% | ||||||
Healthcare trend rate next fiscal year | 2.20% | 2.00% | |||||
HRA stipend increase | 0.00% | ||||||
Real Estate | 5.00% | ||||||
Realized and unrealized gains and losses on equities prior year | 50.00% | ||||||
Scenario, Forecast | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
HRA stipend increase | 2.00% | 4.00% | |||||
Supplemental Employee Retirement Plan | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Employer payment current fiscal year | $ 20.5 | ||||||
Estimated future employer contributions in next fiscal year | 7.5 | ||||||
Defined benefit plan, accumulated other comprehensive (income) loss, before tax | 2.9 | $ 2.9 | |||||
Supplemental Employee Retirement Plan | Rabbi Trusts | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Plan assets | 18.8 | ||||||
Supplemental Employee Retirement Plan | Rabbi Trusts | Other assets, current | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Plan assets | 6.7 | ||||||
Supplemental Employee Retirement Plan | Rabbi Trusts | Deferred charges | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Plan assets | 12.1 | ||||||
Other Pension, Postretirement and Supplemental Plans | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Employer payment current fiscal year | 0.5 | ||||||
Pension Plan | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Plan assets | 807 | 1,053 | $ 935.2 | 807 | |||
Reclassified amount of net periodic benefit income due to adoption of ASU 2017-07 | 5.6 | 17.7 | 25.1 | 25.4 | |||
Other post-retirement benefits | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Plan assets | 528.8 | 731.7 | 638 | $ 528.8 | |||
Reclassified amount of net periodic benefit income due to adoption of ASU 2017-07 | $ (6.2) | $ (24.6) | $ (22.4) | $ (25) | |||
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% |
Pension and Other Post-retire_4
Pension and Other Post-retirement Benefit Plans (Post-Retirement Benefits Table) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2018 | |
Total amounts recognized on balance sheet | ||||
Non-current asset | $ 433,319 | $ 366,508 | ||
Non-current liability | (65,276) | (115,837) | ||
Pension Plan | ||||
Change in projected benefit obligation | ||||
Benefit obligation at beginning of period | 1,059,900 | 971,800 | ||
Service cost | $ 3,000 | 12,500 | 12,300 | $ 14,900 |
Interest cost | 10,600 | 35,500 | 41,200 | 39,600 |
Change in plan benefits | 0 | 200 | ||
Actuarial loss (gain) | 77,900 | 103,600 | ||
Plan participants' contribution | 0 | 0 | ||
Settlements | (18,900) | (19,400) | ||
Benefits paid | (53,200) | (50,600) | ||
Other | 0 | 800 | ||
Projected benefit obligation at end of period | 971,800 | 1,113,700 | 1,059,900 | |
Change in plan assets | ||||
Fair value of plan assets at beginning of period | 935,200 | 807,000 | ||
Actual return on plan assets | 168,900 | 176,700 | ||
Company contributions | 21,000 | 21,500 | ||
Plan participants' contribution | 0 | 0 | ||
Settlements | (18,900) | (19,400) | ||
Expenses | 0 | 0 | ||
Benefits paid | (53,200) | (50,600) | ||
Fair value of plan assets at end of period | 807,000 | 1,053,000 | 935,200 | |
Funded status at end of period | (60,700) | (124,700) | ||
Allocation to affiliates | (400) | (800) | ||
Adjusted funded status at end of period | (60,300) | (123,900) | ||
Total amounts recognized on balance sheet | ||||
Non-current asset | 0 | 0 | ||
Current liability | (6,700) | (19,600) | ||
Non-current liability | (53,600) | (104,300) | ||
Total recognized | (60,300) | (123,900) | ||
Other post-retirement benefits | ||||
Change in projected benefit obligation | ||||
Benefit obligation at beginning of period | 269,200 | 277,900 | ||
Service cost | 1,300 | 5,300 | 5,000 | 5,300 |
Interest cost | 3,000 | 9,300 | 11,900 | $ 11,700 |
Change in plan benefits | 0 | 0 | ||
Actuarial loss (gain) | 25,200 | (12,300) | ||
Plan participants' contribution | 1,600 | 1,600 | ||
Settlements | 0 | 0 | ||
Benefits paid | (15,400) | (15,800) | ||
Other | 500 | 900 | ||
Projected benefit obligation at end of period | 277,900 | 295,700 | 269,200 | |
Change in plan assets | ||||
Fair value of plan assets at beginning of period | 638,000 | 528,800 | ||
Actual return on plan assets | 107,400 | 123,400 | ||
Company contributions | 0 | 0 | ||
Plan participants' contribution | 1,600 | 1,600 | ||
Settlements | 0 | 0 | ||
Expenses | 0 | 0 | ||
Benefits paid | (15,300) | (15,800) | ||
Fair value of plan assets at end of period | $ 528,800 | 731,700 | 638,000 | |
Funded status at end of period | 436,000 | 368,800 | ||
Allocation to affiliates | 2,700 | 2,300 | ||
Adjusted funded status at end of period | 433,300 | 366,500 | ||
Total amounts recognized on balance sheet | ||||
Non-current asset | 433,000 | 366,500 | ||
Current liability | 0 | 0 | ||
Non-current liability | 0 | 0 | ||
Total recognized | $ 433,000 | $ 366,500 |
Pension and Other Post-retire_5
Pension and Other Post-retirement Benefit Plans (Projected and ABO) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 1,075.5 | $ 1,002.3 |
Accumulated benefit obligation | 1,022 | 943.2 |
Fair value of plan assets | 1,053 | 935.2 |
Supplemental Employee Retirement Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 32.4 | 52.3 |
Accumulated benefit obligation | 32.4 | 52.3 |
Fair value of plan assets | 0 | 0 |
Other Pension, Postretirement and Supplemental Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 5.8 | 5.4 |
Accumulated benefit obligation | 5.6 | 4.8 |
Fair value of plan assets | $ 0 | $ 0 |
Pension and Other Post-retire_6
Pension and Other Post-retirement Benefit Plans (Unrecognized Costs Income Recorded on BS) (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Unrecognized Costs/Income Recorded on the Balance Sheet | ||
AOCI, tax expense (benefit) | $ 500,000 | $ 1,600,000 |
Pension Plan | ||
Unrecognized Costs/Income Recorded on the Balance Sheet | ||
Actuarial net loss (gain) | (400,000) | 60,100,000 |
Prior service cost (credit) | 700,000 | 1,000,000 |
Total | 300,000 | 61,100,000 |
Regulatory asset (liability) | (6,000,000) | 44,100,000 |
Pre-tax accumulated other comprehensive loss (income) | 6,300,000 | 16,800,000 |
Total | 300,000 | 60,900,000 |
Unrecognized pension and health and life benefits allocated to affiliates | 0 | 200,000 |
Other Postretirement Benefits Plan | ||
Unrecognized Costs/Income Recorded on the Balance Sheet | ||
Actuarial net loss (gain) | (189,400,000) | (133,100,000) |
Prior service cost (credit) | (73,200,000) | (87,000,000) |
Total | (262,600,000) | (220,100,000) |
Regulatory asset (liability) | (252,500,000) | (195,700,000) |
Pre-tax accumulated other comprehensive loss (income) | (8,400,000) | (23,000,000) |
Total | (260,900,000) | (218,700,000) |
Unrecognized pension and health and life benefits allocated to affiliates | $ 1,700,000 | $ 1,400,000 |
Pension and Other Post-retire_7
Pension and Other Post-retirement Benefit Plans (Recognized in Current Period and Next Year) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Pension Plan | Regulatory Assets Liabilities | ||
Amounts Recognized During Current Period | ||
Actuarial net loss | $ 5.4 | $ 6.1 |
Prior service cost (credit) | 0.2 | 0.1 |
Total | 5.6 | 6.2 |
Pension Plan | AOCI attributable to parent | ||
Amounts Recognized During Current Period | ||
Actuarial net loss | 2.3 | 1.8 |
Prior service cost (credit) | 0.1 | 0.2 |
Total | 2.4 | 2 |
Other Postretirement Benefits Plan | Regulatory Assets Liabilities | ||
Amounts Recognized During Current Period | ||
Actuarial net loss | (1.8) | 0 |
Prior service cost (credit) | (12) | (15) |
Total | (13.8) | (15) |
Other Postretirement Benefits Plan | AOCI attributable to parent | ||
Amounts Recognized During Current Period | ||
Actuarial net loss | (0.2) | 0 |
Prior service cost (credit) | (1.6) | (0.7) |
Total | $ (1.8) | $ (0.7) |
Pension and Other Post-retire_8
Pension and Other Post-retirement Benefit Plans (Components of Net Periodic Benefit Cost Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Net periodic benefit cost (income) | $ 11,300 | |||
Allocation to affiliates | $ 165 | $ 551 | $ 658 | 702 |
Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 3,000 | 12,500 | 12,300 | 14,900 |
Interest cost | 10,600 | 35,500 | 41,200 | 39,600 |
Expected return on plan assets | (10,100) | (43,200) | (42,100) | (43,600) |
Recognized prior service cost (credit) | 100 | 300 | 300 | 300 |
Recognized actuarial loss (gain) | 2,000 | 7,700 | 7,900 | 14,200 |
Settlement charge | 0 | 4,900 | 5,500 | 0 |
Other adjustments | 0 | 0 | 0 | 0 |
Net periodic benefit cost (income) | 5,600 | 17,700 | 25,100 | 25,400 |
Allocation to affiliates | (400) | (1,300) | (1,800) | (4,200) |
Adjusted net periodic benefit cost (income) | 5,200 | 16,400 | 23,300 | 21,200 |
Amount allocated to construction projects | (600) | (1,600) | (1,900) | (4,700) |
Amount deferred as regulatory asset (liability)-net allocations | 1,500 | 0 | 600 | 5,900 |
Amount charged (credited) to expense | 6,100 | 14,800 | 22,000 | 22,400 |
Other Postretirement Benefits Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 1,300 | 5,300 | 5,000 | 5,300 |
Interest cost | 3,000 | 9,300 | 11,900 | 11,700 |
Expected return on plan assets | (6,100) | (23,600) | (24,200) | (24,400) |
Recognized prior service cost (credit) | (4,400) | (13,600) | (15,800) | (17,600) |
Recognized actuarial loss (gain) | 0 | (2,000) | 0 | 0 |
Settlement charge | 0 | 0 | 0 | 0 |
Other adjustments | 0 | 0 | 700 | 0 |
Net periodic benefit cost (income) | (6,200) | (24,600) | (22,400) | (25,000) |
Allocation to affiliates | 800 | 1,300 | 2,600 | 3,100 |
Adjusted net periodic benefit cost (income) | (5,400) | (23,300) | (19,800) | (21,900) |
Amount allocated to construction projects | (200) | (700) | (800) | 4,000 |
Amount deferred as regulatory asset (liability)-net allocations | 0 | 0 | 0 | 0 |
Amount charged (credited) to expense | $ (5,600) | $ (24,000) | $ (20,600) | $ (17,900) |
Pension and Other Post-retire_9
Pension and Other Post-retirement Benefit Plans (Benefit Obligations and Net Periodic Benefit Cost Assumptions) (Details) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2018 | |
Net Periodic Benefit Cost Assumptions [Abstract] | ||||
Assumed income tax rate | 33.32% | |||
Pension Plan | ||||
Net Periodic Benefit Cost Assumptions [Abstract] | ||||
Expected long-term return on plan assets | 5.75% | 5.25% | 5.75% | 5.75% |
Pension Plan | Minimum | ||||
Benefit Obligations Assumptions [Abstract] | ||||
Discount rate | 4.30% | 2.60% | 3.40% | 4.30% |
Rate of compensation increase | 3.50% | 2.50% | 3.00% | 3.50% |
Net Periodic Benefit Cost Assumptions [Abstract] | ||||
Discount rate | 4.30% | 3.40% | 4.30% | 3.60% |
Rate of compensation increase | 3.50% | 3.00% | 3.50% | 3.50% |
Pension Plan | Maximum | ||||
Benefit Obligations Assumptions [Abstract] | ||||
Discount rate | 4.40% | 2.80% | 3.50% | 4.40% |
Rate of compensation increase | 4.10% | 3.00% | 3.50% | 4.10% |
Net Periodic Benefit Cost Assumptions [Abstract] | ||||
Discount rate | 4.40% | 3.50% | 4.40% | 3.90% |
Rate of compensation increase | 4.10% | 3.50% | 4.10% | 4.10% |
Other Postretirement Benefits Plan | ||||
Benefit Obligations Assumptions [Abstract] | ||||
Discount rate | 4.40% | 2.80% | 3.50% | 4.40% |
Rate of compensation increase | 4.10% | 3.50% | 4.10% | |
Net Periodic Benefit Cost Assumptions [Abstract] | ||||
Discount rate | 4.40% | 3.50% | 4.40% | 3.90% |
Expected long-term return on plan assets | 5.25% | 4.50% | 5.25% | 5.50% |
Rate of compensation increase | 4.10% | 3.50% | 4.10% | 4.10% |
Other Postretirement Benefits Plan | Minimum | ||||
Benefit Obligations Assumptions [Abstract] | ||||
Rate of compensation increase | 2.50% | |||
Other Postretirement Benefits Plan | Maximum | ||||
Benefit Obligations Assumptions [Abstract] | ||||
Rate of compensation increase | 3.00% |
Pension and Other Post-Retir_10
Pension and Other Post-Retirement Benefit Plans (Target Asset Allocation by Asset Class) (Details) | Dec. 31, 2020 |
Defined Benefit Plan Disclosure [Line Items] | |
Real Estate | 5.00% |
Total | 100.00% |
Qualified Pension Trust Asset | |
Defined Benefit Plan Disclosure [Line Items] | |
U.S. Equities | 32.00% |
International Equities | 8.00% |
Real Estate | 5.00% |
Fixed Income | 55.00% |
Union-eligible Trust Asset | |
Defined Benefit Plan Disclosure [Line Items] | |
U.S. Equities | 30.00% |
International Equities | 0.00% |
Real Estate | 0.00% |
Fixed Income | 70.00% |
Management Trust Asset | |
Defined Benefit Plan Disclosure [Line Items] | |
U.S. Equities | 50.00% |
International Equities | 0.00% |
Real Estate | 0.00% |
Fixed Income | 50.00% |
Pension and Other Post-retir_11
Pension and Other Post-retirement Benefit Plans (Plan Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Level 2 | Mutual Funds | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | $ 0 | ||
Pension Plan | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | $ 615.2 | 551.3 | |
Total fair value of plan investments | 1,058 | 952.7 | |
Net payable | (5) | (17.5) | |
Total plan assets at fair value | $ 1,053 | $ 935.2 | $ 807 |
Percentage of fair value of plan investments | 58.40% | 59.00% | |
Total fair value of plan assets (%) | 100.50% | 101.90% | |
Percent net payable | (0.50%) | (1.90%) | |
Total plan assets percent | 100.00% | 100.00% | |
Pension Plan | Cash and cash equivalents | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | $ 4.9 | $ 4.2 | |
Percentage of fair value of plan investments | 0.50% | 0.40% | |
Pension Plan | Preferred Securities | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | $ 0.2 | $ 0.2 | |
Percentage of fair value of plan investments | 0.00% | 0.00% | |
Pension Plan | U.S. Treasuries | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | $ 149.2 | $ 145.2 | |
Percentage of fair value of plan investments | 14.20% | 15.50% | |
Pension Plan | U.S. Corporate Debt | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | $ 300.1 | $ 234.8 | |
Percentage of fair value of plan investments | 28.50% | 25.10% | |
Pension Plan | U.S. Agency Obligations and Government Sponsored Entities | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | $ 29.3 | $ 56.7 | |
Percentage of fair value of plan investments | 2.80% | 6.10% | |
Pension Plan | Asset-Backed Securities | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | $ 0.7 | $ 0.8 | |
Percentage of fair value of plan investments | 0.10% | 0.10% | |
Pension Plan | Municipalities | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | $ 10 | $ 9.9 | |
Percentage of fair value of plan investments | 0.90% | 1.10% | |
Pension Plan | Non-U.S. Corporate Debt | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | $ 46.5 | $ 45.1 | |
Percentage of fair value of plan investments | 4.40% | 4.80% | |
Pension Plan | Other | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | $ 13.1 | $ 6.3 | |
Percentage of fair value of plan investments | 1.20% | 0.70% | |
Pension Plan | Mutual Funds | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | $ 60.9 | $ 48.2 | |
Percentage of fair value of plan investments | 5.80% | 5.20% | |
Pension Plan | Derivatives | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | $ 0.3 | $ (0.1) | |
Percentage of fair value of plan investments | 0.00% | 0.00% | |
Pension Plan | Commingled Funds And Pooled Separate Accounts | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | $ 25 | $ 358.6 | |
Percentage of fair value of plan investments | 2.40% | 38.30% | |
Pension Plan | Private Equity / Limited Partnership | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | $ 44 | $ 42.8 | |
Percentage of fair value of plan investments | 4.20% | 4.60% | |
Pension Plan | Collective Trust Fund | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | $ 373.8 | ||
Percentage of fair value of plan investments | 35.50% | ||
Pension Plan | Level 1 | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | $ 65.8 | $ 52.4 | |
Pension Plan | Level 1 | Cash and cash equivalents | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | 4.9 | 4.2 | |
Pension Plan | Level 1 | Preferred Securities | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | 0 | 0 | |
Pension Plan | Level 1 | U.S. Treasuries | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | 0 | 0 | |
Pension Plan | Level 1 | U.S. Corporate Debt | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | 0 | 0 | |
Pension Plan | Level 1 | U.S. Agency Obligations and Government Sponsored Entities | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | 0 | 0 | |
Pension Plan | Level 1 | Asset-Backed Securities | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | 0 | 0 | |
Pension Plan | Level 1 | Municipalities | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | 0 | 0 | |
Pension Plan | Level 1 | Non-U.S. Corporate Debt | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | 0 | 0 | |
Pension Plan | Level 1 | Other | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | 0 | 0 | |
Pension Plan | Level 1 | Mutual Funds | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | 60.9 | 48.2 | |
Pension Plan | Level 1 | Derivatives | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | 0 | 0 | |
Pension Plan | Level 2 | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | 549.4 | 498.9 | |
Pension Plan | Level 2 | Cash and cash equivalents | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | 0 | 0 | |
Pension Plan | Level 2 | Preferred Securities | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | 0.2 | 0.2 | |
Pension Plan | Level 2 | U.S. Treasuries | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | 149.2 | 145.2 | |
Pension Plan | Level 2 | U.S. Corporate Debt | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | 300.1 | 234.8 | |
Pension Plan | Level 2 | U.S. Agency Obligations and Government Sponsored Entities | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | 29.3 | 56.7 | |
Pension Plan | Level 2 | Asset-Backed Securities | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | 0.7 | 0.8 | |
Pension Plan | Level 2 | Municipalities | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | 10 | 9.9 | |
Pension Plan | Level 2 | Non-U.S. Corporate Debt | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | 46.5 | 45.1 | |
Pension Plan | Level 2 | Other | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | 13.1 | 6.3 | |
Pension Plan | Level 2 | Mutual Funds | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | 0 | ||
Pension Plan | Level 2 | Derivatives | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | 0.3 | (0.1) | |
Other post-retirement benefits | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | 160.2 | 137.3 | |
Total fair value of plan investments | 731.9 | 636.9 | |
Net payable | (0.2) | 1.1 | |
Total plan assets at fair value | $ 731.7 | $ 638 | $ 528.8 |
Percentage of fair value of plan investments | 21.90% | 21.50% | |
Total fair value of plan assets (%) | 100.00% | 99.80% | |
Percent net payable | 0.00% | 0.20% | |
Total plan assets percent | 100.00% | 100.00% | |
Other post-retirement benefits | Cash and cash equivalents | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | $ 4.9 | $ 3.4 | |
Percentage of fair value of plan investments | 0.70% | 0.50% | |
Other post-retirement benefits | U.S Agency Obligations | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | $ 0.7 | $ 2.2 | |
Percentage of fair value of plan investments | 0.10% | 0.30% | |
Other post-retirement benefits | U.S. Treasuries | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | $ 60.8 | $ 55.5 | |
Percentage of fair value of plan investments | 8.30% | 8.70% | |
Other post-retirement benefits | U.S. Corporate Debt | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | $ 73.1 | $ 56.3 | |
Percentage of fair value of plan investments | 10.00% | 8.80% | |
Other post-retirement benefits | Municipalities | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | $ 6.9 | $ 5.9 | |
Percentage of fair value of plan investments | 0.90% | 0.80% | |
Other post-retirement benefits | Non-U.S. Corporate Debt | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | $ 8.5 | $ 11.1 | |
Percentage of fair value of plan investments | 1.20% | 1.70% | |
Other post-retirement benefits | Other | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | $ 5.3 | $ 2.9 | |
Percentage of fair value of plan investments | 0.70% | 0.50% | |
Other post-retirement benefits | Commingled Funds | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | $ 571.7 | $ 499.6 | |
Percentage of fair value of plan investments | 78.10% | 78.30% | |
Other post-retirement benefits | Level 1 | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | $ 4.9 | $ 3.4 | |
Other post-retirement benefits | Level 1 | Cash and cash equivalents | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | 4.9 | 3.4 | |
Other post-retirement benefits | Level 1 | U.S Agency Obligations | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | 0 | 0 | |
Other post-retirement benefits | Level 1 | U.S. Treasuries | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | 0 | 0 | |
Other post-retirement benefits | Level 1 | U.S. Corporate Debt | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | 0 | 0 | |
Other post-retirement benefits | Level 1 | Municipalities | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | 0 | 0 | |
Other post-retirement benefits | Level 1 | Non-U.S. Corporate Debt | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | 0 | 0 | |
Other post-retirement benefits | Level 1 | Other | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | 0 | 0 | |
Other post-retirement benefits | Level 2 | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | 155.3 | 133.9 | |
Other post-retirement benefits | Level 2 | Cash and cash equivalents | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | 0 | 0 | |
Other post-retirement benefits | Level 2 | U.S Agency Obligations | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | 0.7 | 2.2 | |
Other post-retirement benefits | Level 2 | U.S. Treasuries | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | 60.8 | 55.5 | |
Other post-retirement benefits | Level 2 | U.S. Corporate Debt | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | 73.1 | 56.3 | |
Other post-retirement benefits | Level 2 | Municipalities | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | 6.9 | 5.9 | |
Other post-retirement benefits | Level 2 | Non-U.S. Corporate Debt | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | 8.5 | 11.1 | |
Other post-retirement benefits | Level 2 | Other | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan investments | $ 5.3 | $ 2.9 |
Pension and Other Post-retir_12
Pension and Other Post-retirement Benefit Plans (Pension Plan Assets-Footnotes) (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Large Cap U.S. Companies Common Stock | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Allocation of investments in comingled funds | 50.00% | 58.00% |
Large Cap U.S. Companies Common Stock | Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Allocation of investments in collective trust funds | 90.30% | |
Allocation of investments in comingled funds and pooled separate accounts | 100.00% | 90.00% |
Income Producing Properties | Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Allocation of investments in collective trust funds | 7.35% | |
Allocation of investments in comingled funds and pooled separate accounts | 8.00% | |
Short-term money market investments | Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Allocation of investments in collective trust funds | 2.35% | |
Allocation of investments in comingled funds and pooled separate accounts | 2.00% | |
U.S. governmental and U.S. agency securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Allocation of investments in comingled funds | 20.00% | 18.00% |
Corporate Bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Allocation of investments in comingled funds | 30.00% | 24.00% |
Pension and Other Post-retir_13
Pension and Other Post-retirement Benefit Plans (Expected Benefit Payments) (Details) $ in Millions | Dec. 31, 2020USD ($) |
Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2021 | $ 58 |
2022 | 57.8 |
2023 | 54.7 |
2024 | 55.6 |
2025 | 56.4 |
2026—2030 | 287.7 |
Other Postretirement Benefits Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2021 | 15.3 |
2022 | 15 |
2023 | 14.7 |
2024 | 14.5 |
2025 | 14.4 |
2026—2030 | $ 74.2 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Dec. 31, 2018USD ($) | Sep. 30, 2020 | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)shares | Sep. 30, 2018USD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2019CAD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 3 years | ||||||
Deferred Credits-other | $ 50,319,000 | $ 64,334,000 | |||||
Accounts payable and other accrued liabilities-other | $ 31,100,000 | $ 34,400,000 | |||||
Expiration period | 6 years | ||||||
Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting right percentage | 0.00% | ||||||
Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting right percentage | 100.00% | ||||||
Performance Units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 3 years | ||||||
Value per unit (in dollars per share) | $ / shares | $ 1 | ||||||
Performance Units | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting right percentage | 80.00% | ||||||
Performance Units | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting right percentage | 120.00% | ||||||
Restricted unit | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 3 years | ||||||
Vesting right percentage | 33.00% | ||||||
Value per unit (in dollars per share) | $ / shares | $ 1 | ||||||
Stock Compensation Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting right percentage | 33.00% | ||||||
ALA Performance Units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 3 years | ||||||
Unrecognized compensation expense | $ 3,900,000 | $ 500,000 | |||||
Period for recognition | 2 years | ||||||
ALA Performance Units | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting right percentage | 0.00% | ||||||
ALA Performance Units | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting right percentage | 200.00% | ||||||
Options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based payment arrangement, expense | $ 600,000 | $ 0 | |||||
Unrecognized compensation expense | $ 0.5 | $ 0.3 | |||||
Current Awards | Performance Units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted (in shares) | shares | 0 | 0 | |||||
Current Awards | Performance Units | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting right percentage | 0.00% | ||||||
Current Awards | Performance Units | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting right percentage | 200.00% | ||||||
Current Awards | Restricted unit | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized compensation expense | $ 400,000 | $ 1,900,000 | |||||
Period for recognition | 9 months | 1 year 9 months | |||||
Cash paid to settle awards | $ 400,000 | $ 600,000 | |||||
Granted (in shares) | shares | 0 | 0 | |||||
Current Awards | Stock Compensation Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based payment arrangement, expense | $ 1,900,000 | $ 1,600,000 | |||||
Deferred Credits-other | 2,700,000 | 1,800,000 | |||||
Accounts payable and other accrued liabilities-other | $ 900,000 | $ 200,000 | |||||
Current Awards | ALA Performance Units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted (in shares) | shares | 427,607 | 27,707 | |||||
Prior Awards | Stock Compensation Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 3 years | ||||||
Share-based payment arrangement, expense | $ 15,800,000 | ||||||
Tax benefit from compensation expense | 4,900,000 | ||||||
Prior Awards | Modification Event | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based payment arrangement, expense | $ 1,000,000 | $ 400,000 | $ 2,000,000 | ||||
Unrecognized compensation expense | 0 | ||||||
Cash paid to settle awards | $ 3,200,000 | 38,500,000 | |||||
Prior Awards | Directors Stock Compensation Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based payment arrangement, expense | $ 800,000 |
Stock-Based Compensation (Perfo
Stock-Based Compensation (Performance Units and Restricted Units) (Details) - Current Awards - shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
ALA Performance Units | ||
Performance Units and Restricted Units [Roll Forward] | ||
Non-vested and outstanding, beginning of the year (in shares) | 27,707 | 0 |
Granted (in shares) | 427,607 | 27,707 |
Vested (in shares) | 0 | 0 |
Canceled/forfeited (in shares) | (111,357) | 0 |
Non-vested and outstanding, end of year (in shares) | 343,957 | 27,707 |
Performance Units | ||
Performance Units and Restricted Units [Roll Forward] | ||
Non-vested and outstanding, beginning of the year (in shares) | 3,558,711 | 5,934,828 |
Granted (in shares) | 0 | 0 |
Vested (in shares) | 0 | 0 |
Canceled/forfeited (in shares) | (781,902) | (2,376,117) |
Non-vested and outstanding, end of year (in shares) | 2,776,809 | 3,558,711 |
Restricted unit | ||
Performance Units and Restricted Units [Roll Forward] | ||
Non-vested and outstanding, beginning of the year (in shares) | 940,414 | 2,253,585 |
Granted (in shares) | 0 | 0 |
Vested (in shares) | (371,031) | (620,382) |
Canceled/forfeited (in shares) | (270,019) | (692,789) |
Non-vested and outstanding, end of year (in shares) | 299,364 | 940,414 |
Stock-Based Compensation (Emplo
Stock-Based Compensation (Employee Share Option Plan) (Details) | 12 Months Ended | ||||
Dec. 31, 2020$ / sharesshares | Dec. 31, 2020$ / sharesshares | Dec. 31, 2019$ / sharesshares | Dec. 31, 2020$ / sharesshares | Dec. 31, 2019$ / sharesshares | |
Number of Options | |||||
Stock Options outstanding, beginning of year (in shares) | shares | 208,561 | 208,561 | 65,000 | ||
Granted (in shares) | shares | 338,962 | 338,962 | 143,561 | ||
Stock options outstanding, end of year (in shares) | shares | 547,523 | 547,523 | 208,561 | ||
Exercise Price (Canadian Dollars) | |||||
Options, Outstanding, Weighted Average Exercise Price, Beginning Balance (Canadian Dollar Per Share) | $ 23.88 | $ 35.16 | |||
Options, Grants in Period, Weighted Average Exercise Price (Canadian Dollar Per Share) | 19.57 | 18.78 | |||
Options, Outstanding, Weighted Average Exercise Price, Ending Balance (Canadian Dollar Per Share) | $ 21.21 | $ 23.88 | |||
Number Outstanding (in shares) | shares | 547,523 | 547,523 | 65,000 | 547,523 | 208,561 |
Weighted Average Exercise Price (Canadian Dollars) | $ 21.21 | $ 35.16 | $ 21.21 | $ 23.88 | |
Weighted Average Remaining Contractual Life (Years) | 4 years 6 months 14 days | 4 years 6 months 14 days | |||
Number Exercisable (in shares) | shares | 106,604 | 52,500 | |||
Weighted Average Exercise Price (Canadian Dollars) | $ 28.05 | $ 36.14 | |||
Weighted Average Remaining Contractual Life (Years) | 2 years 6 months 14 days | 2 years 6 months 14 days | |||
Exercise Price Range One | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Exercise price, low (in dollars per share) | $ 18 | ||||
Exercise price, high (in dollars per share) | $ 25.08 | ||||
Number of Options | |||||
Stock options outstanding, end of year (in shares) | shares | 482,523 | 482,523 | |||
Exercise Price (Canadian Dollars) | |||||
Options, Outstanding, Weighted Average Exercise Price, Ending Balance (Canadian Dollar Per Share) | $ 19.33 | ||||
Number Outstanding (in shares) | shares | 482,523 | 482,523 | 482,523 | ||
Weighted Average Exercise Price (Canadian Dollars) | $ 19.33 | $ 19.33 | |||
Weighted Average Remaining Contractual Life (Years) | 5 years | 5 years | |||
Number Exercisable (in shares) | shares | 47,854 | ||||
Weighted Average Exercise Price (Canadian Dollars) | $ 18.78 | ||||
Weighted Average Remaining Contractual Life (Years) | 4 years 11 months 15 days | 4 years 11 months 15 days | |||
Exercise Price Range Two | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Exercise price, low (in dollars per share) | $ 25.09 | ||||
Exercise price, high (in dollars per share) | $ 46.70 | ||||
Number of Options | |||||
Stock options outstanding, end of year (in shares) | shares | 65,000 | 65,000 | |||
Exercise Price (Canadian Dollars) | |||||
Options, Outstanding, Weighted Average Exercise Price, Ending Balance (Canadian Dollar Per Share) | $ 35.16 | ||||
Number Outstanding (in shares) | shares | 65,000 | 65,000 | 65,000 | ||
Weighted Average Exercise Price (Canadian Dollars) | $ 35.16 | $ 35.16 | |||
Weighted Average Remaining Contractual Life (Years) | 1 year 1 month 17 days | 1 year 1 month 17 days | |||
Number Exercisable (in shares) | shares | 58,750 | ||||
Weighted Average Exercise Price (Canadian Dollars) | $ 35.59 | ||||
Weighted Average Remaining Contractual Life (Years) | 1 year 7 days | 1 year 7 days |
Stock-Based Compensation (Valua
Stock-Based Compensation (Valuation Assumptions) (Details) - Options - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value per options (canadian dollars per share) | $ 2.59 | $ 2.46 |
Risk free interest rate | 1.57% | 1.63% |
Expected life (years) | 6 years | 6 years |
Expected volatility | 25.05% | 24.99% |
Annual dividend per share (canadian dollars per share) | $ 4.85 | $ 5.03 |
Environmental Matters (Narrativ
Environmental Matters (Narrative) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)site | Dec. 31, 2019USD ($) | |
Site Contingency [Line Items] | ||
Number of sites | site | 10 | |
Regulatory assets, noncurrent | $ 99,793 | $ 84,886 |
Environmental response costs | ||
Site Contingency [Line Items] | ||
Regulatory assets, noncurrent | 7,400 | 7,000 |
Environmental response costs | Reserve for Environmental Costs | ||
Site Contingency [Line Items] | ||
Accrual for environmental loss contingencies | 10,300 | 10,700 |
Estimated maximum liability | 30,600 | $ 30,700 |
Environmental response costs | Reserve for Environmental Costs | Anacosta River Study | ||
Site Contingency [Line Items] | ||
Estimated maximum liability | 19,100 | |
Environmental response costs | Reserve for Environmental Costs | East Station Property | ||
Site Contingency [Line Items] | ||
Estimated maximum liability | $ 8,000 |
Commitments and Contingencies -
Commitments and Contingencies - (Narrative) (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Jan. 31, 2021USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2020USD ($)company | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | |
Commitments and Contingencies [Line Items] | ||||||||
Number of service agreements with pipeline companies | company | 5 | |||||||
Operation and maintenance expenses | $ 102,728 | $ 82,372 | $ 399,498 | $ 404,961 | $ 564,536 | $ 544,180 | ||
Loss contingency, receivable | 5,100 | 4,700 | ||||||
Deferred gas cost | 109,034 | 98,717 | ||||||
National Transportation And Safety Board | ||||||||
Commitments and Contingencies [Line Items] | ||||||||
Penalty paid | 750 | |||||||
National Transportation And Safety Board | Subsequent Event | ||||||||
Commitments and Contingencies [Line Items] | ||||||||
Penalty paid | $ 750 | |||||||
Antero contract | ||||||||
Commitments and Contingencies [Line Items] | ||||||||
Loss contingency, damages awarded, value | $ 95,900 | |||||||
Loss contingency accrual | 12,500 | $ 11,700 | ||||||
Antero contract | Washington Gas | ||||||||
Commitments and Contingencies [Line Items] | ||||||||
Loss contingency, receivable | 1,400 | |||||||
Antero contract | Washington Gas | ||||||||
Commitments and Contingencies [Line Items] | ||||||||
Loss contingency, damages awarded, value | 11,200 | |||||||
Loss contingency accrual | 12,500 | |||||||
Deferred gas cost | 5,100 | |||||||
Antero contract | WGL Midstream | ||||||||
Commitments and Contingencies [Line Items] | ||||||||
Loss contingency, damages awarded, value | $ 84,700 | |||||||
Merger agreement, circumstance 2 | ||||||||
Commitments and Contingencies [Line Items] | ||||||||
Other commitments payable | 11,900 | |||||||
Merger agreement, circumstance 2 | Future hiring | ||||||||
Commitments and Contingencies [Line Items] | ||||||||
Operation and maintenance expenses | 2,400 | |||||||
Merger agreement, circumstance 2 | Extend natural gas service | ||||||||
Commitments and Contingencies [Line Items] | ||||||||
Operation and maintenance expenses | 70,000 | |||||||
Merger agreement, circumstance 2 | Future leak mitigation | ||||||||
Commitments and Contingencies [Line Items] | ||||||||
Payment of merger commitments | $ 8,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Contract Minimums (Details) $ in Millions | Dec. 31, 2020USD ($) |
Pipeline Contracts | |
Contract Minimums | |
2021 | $ 259.4 |
2022 | 254 |
2023 | 244.6 |
2024 | 212.7 |
2025 | 197.2 |
Thereafter | 641.2 |
Total | 1,809.1 |
Gas Purchase Commitments | |
Contract Minimums | |
2021 | 349.7 |
2022 | 359.9 |
2023 | 318.1 |
2024 | 323.4 |
2025 | 328.9 |
Thereafter | 1,645.4 |
Total | $ 3,325.4 |
Commitments and Contingencies_3
Commitments and Contingencies - Future Payments Merger Commitments (Details) $ in Millions | Dec. 31, 2020USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2021 | $ 4.1 |
2022 | 1.5 |
2023 | 1.5 |
2024 | 1.2 |
2025 | 1.2 |
Thereafter | 2.4 |
Total | $ 11.9 |
Derivatives - (Narrative) (Deta
Derivatives - (Narrative) (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2020USD ($)counter_party | Dec. 31, 2019USD ($) | Sep. 30, 2018USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Collaborative arrangement expenses | $ 2.1 | $ 8.6 | $ 6 | $ 9.5 |
Right to reclaim cash | 2.8 | 5.2 | ||
Derivative, collateral, obligation to return cash | $ 0.2 | $ 0.1 | ||
Number of counterparties | counter_party | 1 | |||
Concentration risk credit risk financial instrument exposure | $ 17.4 |
Derivatives - (Utility of Gas C
Derivatives - (Utility of Gas Cost) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Realized gain | $ 5.3 | $ 20.8 | $ 13.1 | $ 23.9 |
Unrealized gain/(loss) | (4.2) | 3.6 | 5.4 | 10.4 |
Net margin gain/(loss) | $ 1.1 | $ 24.4 | 18.5 | $ 34.3 |
Asset optimization loss contingency related | $ 3 |
Derivatives - (Open Positions o
Derivatives - (Open Positions on Derivative Instruments) (Details) - BTU BTU in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Asset optimization & trading | ||
Derivative [Line Items] | ||
Natural gas derivative transaction, volume | 10,471 | 11,671 |
Other risk-management activities | ||
Derivative [Line Items] | ||
Natural gas derivative transaction, volume | 881 | 976 |
Derivatives - (Balance Sheet Cl
Derivatives - (Balance Sheet Classification of Derivative Instruments) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral [Abstract] | ||
Gross amounts of recognized assets/(liabilities) | $ 17.8 | $ 13 |
Gross amounts offset in balance sheet | (1.5) | 4 |
Netting of collateral | 0 | 0 |
Net amounts presented on balance sheet | 16.3 | 17 |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral [Abstract] | ||
Gross amounts of recognized assets/(liabilities) | (98.8) | (104) |
Gross amounts offset in balance sheet | 1.5 | (4) |
Netting of collateral | 1.6 | 6.2 |
Net amounts presented on balance sheet | (95.7) | (101.8) |
Total, gross amounts of recognized assets/(liabilities) | (81) | (91) |
Total, gross amounts offset in balance sheet | 0 | 0 |
Total, netting of collateral | 1.6 | 6.2 |
Total | (79.4) | (84.8) |
Current assets- Derivatives | ||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral [Abstract] | ||
Net amounts presented on balance sheet | 5 | 6.6 |
Deferred charges and other assets | ||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral [Abstract] | ||
Net amounts presented on balance sheet | 11.3 | 10.4 |
Current liabilities—Derivatives | ||
Derivative Liability, Fair Value, Amount Not Offset Against Collateral [Abstract] | ||
Net amounts presented on balance sheet | (7.1) | (4.1) |
Deferred credits—Derivatives | ||
Derivative Liability, Fair Value, Amount Not Offset Against Collateral [Abstract] | ||
Net amounts presented on balance sheet | $ (88.6) | $ (97.7) |
Derivatives - (Gains and Losses
Derivatives - (Gains and Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2018 | |
Gains and (Losses) on Derivative Instruments | ||||
Total | $ (9.2) | $ 5.8 | $ 19.5 | $ (9.7) |
Recorded to income — Utility cost of gas | ||||
Gains and (Losses) on Derivative Instruments | ||||
Recorded to income | (3.2) | 5.5 | 5.5 | (2.1) |
Recorded to regulatory assets — Gas costs | ||||
Gains and (Losses) on Derivative Instruments | ||||
Recorded to regulatory assets | $ (6) | $ 0.3 | $ 14 | $ (7.6) |
Derivatives - Credit Risk Conti
Derivatives - Credit Risk Contingent Features (Details) - Credit Risk Contract - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Derivative liabilities with credit-risk-contingent features | $ 0.7 | $ 0.4 |
Maximum potential collateral requirements | $ 0.6 | $ 0.4 |
Fair Value Measurements (Under
Fair Value Measurements (Under the Fair Value Hierarchy) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Financial Assets [Abstract] | ||||
Cash equivalents | $ 3,200 | $ 11,000 | ||
Rabbi trust investment | 22,000 | 44,100 | ||
Derivative asset - current | 5,049 | 6,553 | ||
Derivative asset - deferred | 11,263 | 10,370 | ||
Other long-term receivables | 1,400 | 1,300 | ||
Total Assets | 42,900 | 73,400 | ||
Financial Liabilities [Abstract] | ||||
Derivative liabilities - current | (7,053) | (4,069) | ||
Derivative liabilities - deferred | (88,559) | (97,695) | ||
Commercial paper | (285,000) | (399,500) | ||
Unsecured notes | (1,779,800) | (1,480,800) | ||
Total Liabilities | (2,160,500) | (1,982,100) | ||
Carrying amount | 6,673 | 19,464 | $ 20,207 | $ 20,207 |
Restricted cash included in Deferred charges and other assets — Other | 15,288 | 24,615 | $ 45,134 | $ 44,775 |
Level 1 | ||||
Financial Assets [Abstract] | ||||
Cash equivalents | 3,200 | 11,000 | ||
Rabbi trust investment | 22,000 | 44,100 | ||
Other long-term receivables | 0 | 0 | ||
Total Assets | 25,200 | 55,100 | ||
Financial Liabilities [Abstract] | ||||
Commercial paper | 0 | 0 | ||
Unsecured notes | 0 | 0 | ||
Total Liabilities | 0 | 0 | ||
Level 2 | ||||
Financial Assets [Abstract] | ||||
Cash equivalents | 0 | 0 | ||
Rabbi trust investment | 0 | 0 | ||
Other long-term receivables | 1,400 | 1,300 | ||
Total Assets | 3,000 | 1,900 | ||
Financial Liabilities [Abstract] | ||||
Commercial paper | (285,000) | (399,500) | ||
Unsecured notes | (1,779,800) | (1,480,800) | ||
Total Liabilities | (2,065,800) | (1,880,900) | ||
Level 3 | ||||
Financial Assets [Abstract] | ||||
Cash equivalents | 0 | 0 | ||
Rabbi trust investment | 0 | 0 | ||
Other long-term receivables | 0 | 0 | ||
Total Assets | 14,700 | 16,400 | ||
Financial Liabilities [Abstract] | ||||
Commercial paper | 0 | 0 | ||
Unsecured notes | 0 | 0 | ||
Total Liabilities | (94,700) | (101,200) | ||
Carrying Amount | ||||
Financial Assets [Abstract] | ||||
Cash equivalents | 3,200 | 11,000 | ||
Rabbi trust investment | 22,000 | 44,100 | ||
Other long-term receivables | 1,400 | 1,300 | ||
Total Assets | 42,900 | 73,400 | ||
Financial Liabilities [Abstract] | ||||
Commercial paper | (285,000) | (399,500) | ||
Unsecured notes | (1,446,900) | (1,330,900) | ||
Total Liabilities | (1,827,600) | (1,832,200) | ||
Derivative assets | ||||
Financial Assets [Abstract] | ||||
Derivative asset - current | 2,100 | 2,600 | ||
Derivative asset - deferred | 4,500 | 4,100 | ||
Derivative assets | Level 1 | ||||
Financial Assets [Abstract] | ||||
Derivative asset - current | 0 | 0 | ||
Derivative asset - deferred | 0 | 0 | ||
Derivative assets | Level 2 | ||||
Financial Assets [Abstract] | ||||
Derivative asset - current | 700 | 100 | ||
Derivative asset - deferred | 0 | 200 | ||
Derivative assets | Level 3 | ||||
Financial Assets [Abstract] | ||||
Derivative asset - current | 1,400 | 2,500 | ||
Derivative asset - deferred | 4,500 | 3,900 | ||
Derivative assets | Carrying Amount | ||||
Financial Assets [Abstract] | ||||
Derivative asset - current | 2,100 | 2,600 | ||
Derivative asset - deferred | 4,500 | 4,100 | ||
Regulatory assets | ||||
Financial Assets [Abstract] | ||||
Derivative asset - current | 2,900 | 4,000 | ||
Derivative asset - deferred | 6,800 | 6,300 | ||
Regulatory assets | Level 1 | ||||
Financial Assets [Abstract] | ||||
Derivative asset - current | 0 | 0 | ||
Derivative asset - deferred | 0 | 0 | ||
Regulatory assets | Level 2 | ||||
Financial Assets [Abstract] | ||||
Derivative asset - current | 900 | 0 | ||
Derivative asset - deferred | 0 | 300 | ||
Regulatory assets | Level 3 | ||||
Financial Assets [Abstract] | ||||
Derivative asset - current | 2,000 | 4,000 | ||
Derivative asset - deferred | 6,800 | 6,000 | ||
Regulatory assets | Carrying Amount | ||||
Financial Assets [Abstract] | ||||
Derivative asset - current | 2,900 | 4,000 | ||
Derivative asset - deferred | 6,800 | 6,300 | ||
Derivative liabilities | ||||
Financial Liabilities [Abstract] | ||||
Derivative liabilities - current | (400) | (700) | ||
Derivative liabilities - deferred | (26,800) | (28,400) | ||
Derivative liabilities | Level 1 | ||||
Financial Liabilities [Abstract] | ||||
Derivative liabilities - current | 0 | 0 | ||
Derivative liabilities - deferred | 0 | 0 | ||
Derivative liabilities | Level 2 | ||||
Financial Liabilities [Abstract] | ||||
Derivative liabilities - current | 0 | 0 | ||
Derivative liabilities - deferred | 0 | 0 | ||
Derivative liabilities | Level 3 | ||||
Financial Liabilities [Abstract] | ||||
Derivative liabilities - current | (400) | (700) | ||
Derivative liabilities - deferred | (26,800) | (28,400) | ||
Derivative liabilities | Carrying Amount | ||||
Financial Liabilities [Abstract] | ||||
Derivative liabilities - current | (400) | (700) | ||
Derivative liabilities - deferred | (26,800) | (28,400) | ||
Regulatory liabilities | ||||
Financial Liabilities [Abstract] | ||||
Derivative liabilities - current | (6,700) | (3,400) | ||
Derivative liabilities - deferred | (61,800) | (69,300) | ||
Regulatory liabilities | Level 1 | ||||
Financial Liabilities [Abstract] | ||||
Derivative liabilities - current | 0 | 0 | ||
Derivative liabilities - deferred | 0 | 0 | ||
Regulatory liabilities | Level 2 | ||||
Financial Liabilities [Abstract] | ||||
Derivative liabilities - current | (300) | (600) | ||
Derivative liabilities - deferred | (700) | 0 | ||
Regulatory liabilities | Level 3 | ||||
Financial Liabilities [Abstract] | ||||
Derivative liabilities - current | (6,400) | (2,800) | ||
Derivative liabilities - deferred | (61,100) | (69,300) | ||
Regulatory liabilities | Carrying Amount | ||||
Financial Liabilities [Abstract] | ||||
Derivative liabilities - current | (6,700) | (3,400) | ||
Derivative liabilities - deferred | (61,800) | (69,300) | ||
Other assets, current | ||||
Financial Liabilities [Abstract] | ||||
Carrying amount | 6,700 | 19,500 | ||
Deferred charges and other assets | ||||
Financial Liabilities [Abstract] | ||||
Restricted cash included in Deferred charges and other assets — Other | 15,300 | 24,600 | ||
Note payable and project financing | ||||
Financial Liabilities [Abstract] | ||||
Commercial paper | (185,000) | (299,500) | ||
Long-term debt | ||||
Financial Liabilities [Abstract] | ||||
Commercial paper | $ (100,000) | $ (100,000) |
Fair Value Measurements (Quanti
Fair Value Measurements (Quantitative information) (Details) - Natural Gas Related Derivatives | Dec. 31, 2020USD ($)$ / dekatherm | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) |
Fair Value Measurements Details [Line Items] | |||||
Net Fair Value | $ (80,000,000) | $ (84,800,000) | $ (106,600,000) | $ (94,100,000) | $ (122,600,000) |
Discounted Cash Flow | |||||
Fair Value Measurements Details [Line Items] | |||||
Net Fair Value | $ (80,000,000) | $ (84,800,000) | |||
Discounted Cash Flow | Weighted Average | Natural Gas Basis Price | |||||
Fair Value Measurements Details [Line Items] | |||||
Input price | $ / dekatherm | (0.36) | ||||
Discounted Cash Flow | Minimum | Natural Gas Basis Price | |||||
Fair Value Measurements Details [Line Items] | |||||
Input price | (0.910) | (0.905) | |||
Discounted Cash Flow | Maximum | Natural Gas Basis Price | |||||
Fair Value Measurements Details [Line Items] | |||||
Input price | 2.073 | 2.523 |
Fair Value Measurements (Reconc
Fair Value Measurements (Reconciliation with Level 3 Inputs) (Details) - Natural Gas Related Derivatives - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2018 | |
Reconciliation of Fair Value Measurements Using Significant Level 3 Inputs | ||||
Beginning of period | $ (94.1) | $ (84.8) | $ (106.6) | $ (122.6) |
Recorded to income-Utility cost of gas | (4.4) | 4.1 | 7.2 | (4.5) |
Recorded to regulatory assets—gas costs | (5.8) | (1.2) | 17.8 | (10) |
Transfers into Level 3 | 0 | 0 | (6.7) | (6.9) |
Transfers out of Level 3 | 0 | 1.3 | 7.9 | 8.9 |
Settlements | (2.3) | 0.6 | (4.4) | 41 |
End of period | $ (106.6) | $ (80) | $ (84.8) | $ (94.1) |
Fair Value Measurements (Unreal
Fair Value Measurements (Unrealized Gains and Losses Recorded for Level 3 Measurements) (Details) - Natural Gas Related Derivatives - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2018 | |
Unrealized Gains (Losses) Recorded for Level 3 Measurements | ||||
Recorded to regulatory assets — Gas costs | $ (5.8) | $ (1.2) | $ 17.8 | $ (10) |
Total unrealized gains (losses) | (9.3) | 13.9 | 31.5 | 2.5 |
Recorded to income — Utility cost of gas | ||||
Unrealized Gains (Losses) Recorded for Level 3 Measurements | ||||
Recorded to income — Utility cost of gas | (4) | 6.7 | 9.9 | 2.3 |
Regulatory asset-gas costs member | ||||
Unrealized Gains (Losses) Recorded for Level 3 Measurements | ||||
Recorded to regulatory assets — Gas costs | $ (5.3) | $ 7.2 | $ 21.6 | $ 0.2 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Oct. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jan. 01, 2019 | |
Related Party Transaction [Line Items] | ||||||||
Operation and maintenance | $ 102,728 | $ 82,372 | $ 399,498 | $ 404,961 | $ 564,536 | $ 544,180 | ||
Contract asset | 16,100 | 44,200 | $ 85,300 | |||||
Payables to associated companies | 29,526 | 57,923 | ||||||
WGL Energy Services | ||||||||
Related Party Transaction [Line Items] | ||||||||
Gas balancing service charge | 4,600 | 16,600 | 20,000 | 18,500 | ||||
Hampshire Gas Company | ||||||||
Related Party Transaction [Line Items] | ||||||||
Operation and maintenance | 1,700 | 8,200 | 7,400 | $ 6,900 | ||||
WGL Energy Services | ||||||||
Related Party Transaction [Line Items] | ||||||||
Payables to associated companies | 2,000 | 2,100 | ||||||
Related party purchased receivables | 6,900 | 7,900 | ||||||
WGL Energy Systems | Energy management services projects not complete | ||||||||
Related Party Transaction [Line Items] | ||||||||
Payables to associated companies | 53,000 | 16,100 | 44,200 | $ 53,000 | ||||
Historically drawn | $ 53,000 | |||||||
Shared service costs | Parent Company | ||||||||
Related Party Transaction [Line Items] | ||||||||
Operation and maintenance | $ 4,500 | $ 19,700 | $ 18,200 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2018 | ||
AOCI, Net of Tax [Roll Forward] | |||||
Beginning Balance | [1] | $ 1,452,723 | $ 1,578,592 | $ 1,571,530 | $ 1,172,377 |
Actuarial gain (loss) arising during the period | (6,597) | (4,736) | 14,672 | 4,620 | |
Current-period other comprehensive income (loss) | (6,376) | (4,100) | 15,810 | 5,432 | |
Income tax expense (benefit) related to pension and other post-retirement benefit plans | (1,650) | (1,101) | 4,128 | 2,901 | |
Ending Balance | [1] | 1,571,530 | 1,855,925 | 1,578,592 | 1,452,723 |
AOCI attributable to parent | |||||
AOCI, Net of Tax [Roll Forward] | |||||
Beginning Balance | [1] | (2,380) | 4,576 | (7,106) | (4,911) |
Ending Balance | [1] | (7,106) | 1,577 | 4,576 | (2,380) |
Amortization of prior service cost | |||||
AOCI, Net of Tax [Roll Forward] | |||||
Reclassification | (226) | (1,493) | (649) | (675) | |
Amortization of actuarial loss | |||||
AOCI, Net of Tax [Roll Forward] | |||||
Reclassification | $ 447 | $ 2,129 | $ 1,787 | $ 1,487 | |
[1] | In the third quarter of 2020, Washington Gas made a voluntary change in accounting principle for calculating the market-related value of assets used in the determination of net periodic pension and other post-retirement benefit plan costs. We retrospectively applied this change in accounting principle to all applicable prior period financial information presented herein as required. Refer to Note 1 — Accounting Policies for further discussion. |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
CHANGES IN OPERATING ASSETS AND LIABILITIES | |||||
Receivables | $ (222,098) | $ 9,288 | $ (16,494) | $ (13,557) | |
(Receivables from) payables to associated companies — net | 18,788 | (116,703) | (7,362) | (43,161) | |
Gas costs and other regulatory assets/liabilities — net | 40,028 | (54,684) | 26,374 | 27,994 | |
Storage gas | (2,550) | 17,395 | 15,952 | (8,626) | |
Prepaid taxes | (9,461) | 11,029 | (7,383) | 5,618 | |
Accounts payable and other accrued liabilities | 61,029 | (11,014) | (56,925) | 18,378 | |
Customer deposits and advance payments | (29,288) | (1,309) | (14,318) | 19,464 | |
Accrued taxes | 1,024 | 2,856 | (4,670) | 14,619 | |
Other current assets | (28) | 5,575 | (13,591) | (14,605) | |
Other current liabilities | (121) | 1,424 | (2,474) | 154 | |
Deferred gas costs — net | (51,936) | (16,764) | 33,044 | (8,306) | |
Deferred assets — other | 483 | (16,911) | 4,981 | (5,895) | |
Deferred liabilities — other | (7,072) | 76,918 | (28,004) | (20,606) | |
Pension and other post-retirement benefits | (638) | (19,030) | (15,677) | (14,521) | |
Changes in operating assets and liabilities | (201,840) | (111,930) | (86,547) | (43,050) | |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION (a) | |||||
Income taxes paid (refunded)—net | 3,782 | (2,880) | 15,623 | (2,983) | |
Interest paid including interest for finance leases | 4,982 | 62,883 | 57,922 | 57,036 | |
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING ACTIVITIES (a) | |||||
Extinguishment of project debt financing | (53,018) | 0 | (15,460) | (28,312) | |
Capital expenditure accruals included in accounts payable and other accrued liabilities | 33,245 | 74,121 | 26,590 | 53,367 | |
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING ACTIVITIES (a) | |||||
Cash and cash equivalents | 6,082 | 1 | 17,069 | 1 | |
Restricted cash | 20,207 | 6,673 | 19,464 | 20,207 | |
Restricted cash included in Deferred charges and other assets — Other | 45,134 | 15,288 | 24,615 | 44,775 | |
Total cash, cash equivalents and restricted cash shown in the statement of cash flows | $ 71,423 | $ 21,962 | $ 61,148 | $ 64,983 | $ 1 |
Comparative Data - Income State
Comparative Data - Income Statements (Details) - USD ($) $ in Thousands | Dec. 20, 2019 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | ||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||
OPERATING REVENUES | $ 378,031 | $ 143,383 | $ 211,166 | $ 501,735 | $ 416,209 | $ 122,305 | $ 198,484 | $ 593,653 | $ 402,101 | $ 377,470 | $ 1,234,315 | $ 1,330,651 | $ 1,272,694 | $ 1,248,063 | |||||
OPERATING EXPENSES | |||||||||||||||||||
Utility cost of gas | 156,641 | 124,745 | 328,244 | 461,574 | 438,939 | 407,043 | |||||||||||||
Operation and maintenance | 102,728 | 82,372 | 399,498 | 404,961 | 564,536 | 544,180 | |||||||||||||
Depreciation and amortization | 34,948 | 33,646 | 145,585 | 142,565 | 136,373 | 135,071 | |||||||||||||
General taxes and other assessments | 38,552 | 39,983 | 152,654 | 149,618 | 146,747 | 148,178 | |||||||||||||
Total Operating Expenses | 332,869 | 280,746 | 1,025,981 | 1,158,718 | 1,286,595 | 1,234,472 | |||||||||||||
Operating income (loss) | 83,727 | (35,928) | (10,632) | 171,167 | 102,541 | (73,050) | (10,138) | 152,580 | 69,232 | 96,724 | 208,334 | 171,933 | (13,901) | 13,591 | |||||
Other income (expense) — net | 2,045 | 1,870 | 21,737 | 5,822 | (4,052) | (4,226) | |||||||||||||
Interest expense | 15,706 | 14,973 | 65,352 | 62,567 | 59,237 | 58,504 | |||||||||||||
INCOME (LOSS) BEFORE INCOME TAXES | 55,571 | 83,621 | 164,719 | 115,188 | (77,190) | (49,139) | |||||||||||||
INCOME TAX EXPENSE (BENEFIT) | 7,471 | 25,072 | 32,844 | 18,083 | (42,591) | (24,989) | |||||||||||||
NET INCOME (LOSS) | 55,338 | (36,622) | (14,600) | 127,759 | 72,530 | (66,476) | (21,268) | 112,319 | 48,100 | [1] | 58,549 | 131,875 | [1] | 97,105 | [1] | (34,599) | (24,150) | [1] | |
Loss on preferred stock extinguishment | $ 600 | 0 | 0 | 0 | 556 | 0 | 0 | ||||||||||||
Dividends on preferred stock | 330 | 330 | 0 | 1,169 | 1,320 | 1,320 | |||||||||||||
NET INCOME (LOSS) APPLICABLE TO COMMON STOCK | $ 55,338 | $ (36,622) | $ (14,600) | $ 127,759 | $ 71,465 | $ (66,476) | $ (21,598) | $ 111,989 | $ 47,770 | $ 58,219 | $ 131,875 | $ 95,380 | $ (35,919) | $ (25,470) | |||||
[1] | In the third quarter of 2020, Washington Gas made a voluntary change in accounting principle for calculating the market-related value of assets used in the determination of net periodic pension and other post-retirement benefit plan costs. We retrospectively applied this change in accounting principle to all applicable prior period financial information presented herein as required. Refer to Note 1 — Accounting Policies for further discussion. |
Quarterly Financial Informati_3
Quarterly Financial Information (Unaudited) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | |||||
Effect of Fourth Quarter Events [Line Items] | ||||||||||||||||||
Operating revenues | $ 378,031 | $ 143,383 | $ 211,166 | $ 501,735 | $ 416,209 | $ 122,305 | $ 198,484 | $ 593,653 | $ 402,101 | $ 377,470 | $ 1,234,315 | $ 1,330,651 | $ 1,272,694 | $ 1,248,063 | ||||
Operating income (loss) | 83,727 | (35,928) | (10,632) | 171,167 | 102,541 | (73,050) | (10,138) | 152,580 | 69,232 | 96,724 | 208,334 | 171,933 | (13,901) | 13,591 | ||||
Net income | 55,338 | (36,622) | (14,600) | 127,759 | 72,530 | (66,476) | (21,268) | 112,319 | 48,100 | [1] | 58,549 | 131,875 | [1] | 97,105 | [1] | (34,599) | (24,150) | [1] |
Net income (loss) applicable to common stock | 55,338 | (36,622) | (14,600) | 127,759 | 71,465 | (66,476) | (21,598) | 111,989 | $ 47,770 | $ 58,219 | $ 131,875 | $ 95,380 | $ (35,919) | $ (25,470) | ||||
Cumulative effect of adoption | ||||||||||||||||||
Effect of Fourth Quarter Events [Line Items] | ||||||||||||||||||
Net income | 2,000 | 1,700 | 1,700 | 1,700 | 700 | 700 | 700 | 700 | ||||||||||
Net income (loss) applicable to common stock | $ 2,000 | $ 1,700 | $ 1,700 | $ 1,700 | $ 700 | $ 700 | $ 700 | $ 700 | ||||||||||
[1] | In the third quarter of 2020, Washington Gas made a voluntary change in accounting principle for calculating the market-related value of assets used in the determination of net periodic pension and other post-retirement benefit plan costs. We retrospectively applied this change in accounting principle to all applicable prior period financial information presented herein as required. Refer to Note 1 — Accounting Policies for further discussion. |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts and Reserves (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2018 | Sep. 30, 2019 | Dec. 31, 2020 | Sep. 30, 2018 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Valuation Allowances and Reserves, Beginning Balance | $ 29,622 | $ 29,461 | $ 18,708 | $ 23,741 |
Valuation Allowances and Reserves, Charged to Cost and Expense | 5,902 | 16,572 | 22,005 | 19,946 |
Valuation Allowances and Reserves, Charged to Other Accounts | 581 | 2,565 | 3,628 | 1,409 |
Valuation Allowances and Reserves, Deduction | 6,644 | $ 29,890 | 16,936 | 15,474 |
Valuation Allowances and Reserves, Ending Balance | $ 29,461 | $ 27,405 | $ 29,622 |