Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Dec. 31, 2014 | Jan. 31, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | WGL Holdings Inc. | |
Entity Central Index Key | 1103601 | |
Document Type | 10-Q | |
Document Period End Date | 31-Dec-14 | |
Amendment Flag | FALSE | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | -21 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 49,721,934 |
Consolidated_Balance_Sheets_Un
Consolidated Balance Sheets (Unaudited) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 |
In Thousands, unless otherwise specified | ||
Deferred charges and other assets | ||
Investments in direct financing leases, capital leases | $21,400 | |
WGL Holdings, Inc. | ||
Property, Plant and Equipment | ||
At original cost | 4,658,194 | 4,582,764 |
Accumulated depreciation and amortization | -1,258,762 | -1,268,319 |
Net property, plant and equipment | 3,399,432 | 3,314,445 |
Current Assets | ||
Cash and cash equivalents | 7,390 | 8,811 |
Receivables | ||
Accounts receivable | 347,091 | 222,253 |
Gas costs and other regulatory assets | 6,369 | 3,752 |
Unbilled revenues | 191,982 | 96,314 |
Allowance for doubtful accounts | -20,883 | -23,341 |
Net receivables | 524,559 | 298,978 |
Materials and supplies-principally at average cost | 24,377 | 23,647 |
Storage gas | 296,911 | 333,602 |
Deferred income taxes | 16,352 | 26,664 |
Prepaid taxes | 47,813 | 66,578 |
Other prepayments | 33,105 | 34,269 |
Derivatives | 39,947 | 18,331 |
Other | 37,708 | 24,635 |
Total current assets | 1,028,162 | 835,515 |
Deferred charges and other assets | ||
Gas costs | 194,978 | 191,346 |
Pension and other post-retirement benefits | 187,309 | 192,981 |
Other | 71,943 | 71,638 |
Prepaid post-retirement benefits | 100,220 | 96,385 |
Derivatives | 27,767 | 18,739 |
Investments in direct financing leases, capital leases | 17,710 | 18,159 |
Investments in unconsolidated affiliates | 102,315 | 100,528 |
Other | 18,256 | 16,763 |
Total deferred charges and other assets | 720,498 | 706,539 |
Total Assets | 5,148,092 | 4,856,499 |
Capitalization | ||
Common shareholders' equity | 1,242,650 | 1,246,576 |
Washington Gas Light Company preferred stock | 28,173 | 28,173 |
Long-term debt | 975,611 | 679,228 |
Total capitalization | 2,246,434 | 1,953,977 |
Current Liabilities | ||
Current maturities of long-term debt | 20,000 | 20,000 |
Notes payable | 350,000 | 453,500 |
Accounts payable and other accrued liabilities | 336,352 | 313,221 |
Wages payable | 17,997 | 19,995 |
Accrued interest | 13,627 | 3,488 |
Dividends declared | 22,202 | 22,449 |
Customer deposits and advance payments | 78,673 | 68,318 |
Gas costs and other regulatory liabilities | 65,577 | 22,563 |
Accrued taxes | 27,435 | 14,133 |
Derivatives | 54,767 | 48,555 |
Other | 46,199 | 34,063 |
Total current liabilities | 1,032,829 | 1,020,285 |
Deferred Credits | ||
Unamortized investment tax credits | 114,422 | 99,351 |
Deferred income taxes | 680,282 | 660,908 |
Accrued pensions and benefits | 122,338 | 120,446 |
Asset retirement obligations | 176,936 | 175,203 |
Regulatory liabilities | ||
Accrued asset removal costs | 330,591 | 327,388 |
Other post-retirement benefits | 84,347 | 86,428 |
Other | 17,773 | 17,588 |
Derivatives | 259,222 | 294,745 |
Other | 82,918 | 100,180 |
Total deferred credits | 1,868,829 | 1,882,237 |
Commitments and Contingencies (Note 13) | ||
Total Capitalization and Liabilities | 5,148,092 | 4,856,499 |
Washington Gas Light Company | ||
Property, Plant and Equipment | ||
At original cost | 4,276,241 | 4,250,194 |
Accumulated depreciation and amortization | -1,215,854 | -1,228,130 |
Net property, plant and equipment | 3,060,387 | 3,022,064 |
Current Assets | ||
Cash and cash equivalents | 1 | 1,060 |
Receivables | ||
Accounts receivable | 212,410 | 121,419 |
Gas costs and other regulatory assets | 6,369 | 3,752 |
Unbilled revenues | 104,902 | 20,881 |
Allowance for doubtful accounts | -16,533 | -19,209 |
Net receivables | 307,148 | 126,843 |
Materials and supplies-principally at average cost | 24,331 | 23,600 |
Storage gas | 150,080 | 156,083 |
Deferred income taxes | 16,569 | 22,916 |
Prepaid taxes | 24,004 | 16,137 |
Other prepayments | 11,719 | 14,272 |
Receivables from associated companies | 3,601 | 4,821 |
Derivatives | 11,611 | 3,884 |
Total current assets | 549,064 | 369,616 |
Deferred charges and other assets | ||
Gas costs | 194,978 | 191,346 |
Pension and other post-retirement benefits | 186,255 | 191,896 |
Other | 71,903 | 71,584 |
Prepaid post-retirement benefits | 99,468 | 95,660 |
Derivatives | 11,694 | 9,455 |
Other | 12,017 | 13,457 |
Total deferred charges and other assets | 576,315 | 573,398 |
Total Assets | 4,185,766 | 3,965,078 |
Capitalization | ||
Common shareholders' equity | 1,095,214 | 1,050,166 |
Washington Gas Light Company preferred stock | 28,173 | 28,173 |
Long-term debt | 727,197 | 679,228 |
Total capitalization | 1,850,584 | 1,757,567 |
Current Liabilities | ||
Current maturities of long-term debt | 20,000 | 20,000 |
Notes payable | 138,000 | 89,000 |
Accounts payable and other accrued liabilities | 174,185 | 176,467 |
Wages payable | 16,773 | 18,290 |
Accrued interest | 12,116 | 3,488 |
Dividends declared | 19,592 | 19,722 |
Customer deposits and advance payments | 78,532 | 68,318 |
Gas costs and other regulatory liabilities | 65,577 | 22,563 |
Accrued taxes | 21,998 | 24,610 |
Payables to associated companies | 67,652 | 54,685 |
Derivatives | 24,872 | 33,858 |
Other | 7,575 | 7,199 |
Total current liabilities | 646,872 | 538,200 |
Deferred Credits | ||
Unamortized investment tax credits | 6,261 | 6,479 |
Deferred income taxes | 697,483 | 619,946 |
Accrued pensions and benefits | 120,835 | 118,954 |
Asset retirement obligations | 175,488 | 173,775 |
Regulatory liabilities | ||
Accrued asset removal costs | 330,591 | 327,388 |
Other post-retirement benefits | 83,751 | 85,814 |
Other | 17,773 | 17,588 |
Derivatives | 222,678 | 260,789 |
Other | 33,450 | 58,578 |
Total deferred credits | 1,688,310 | 1,669,311 |
Commitments and Contingencies (Note 13) | ||
Total Capitalization and Liabilities | $4,185,766 | $3,965,078 |
Consolidated_Statement_of_Inco
Consolidated Statement of Income (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
OPERATING EXPENSES | ||
NET INCOME (LOSS) APPLICABLE TO COMMON STOCK | $63,888 | $18,629 |
AVERAGE COMMON SHARES OUTSTANDING | ||
Basic | 49,946 | 51,816 |
Diluted | 50,091 | 51,827 |
EARNINGS (LOSS) PER AVERAGE COMMON SHARE | ||
Basic | $1.28 | $0.36 |
Diluted | $1.28 | $0.36 |
WGL Holdings, Inc. | ||
OPERATING REVENUES | ||
Utility | 381,712 | 386,541 |
Non-utility | 367,525 | 293,756 |
Total Operating Revenues | 749,237 | 680,297 |
OPERATING EXPENSES | ||
Utility cost of gas | 129,704 | 186,881 |
Non-utility cost of energy-related sales | 336,568 | 305,351 |
Operation and maintenance | 92,380 | 88,142 |
Depreciation and amortization | 29,360 | 26,590 |
General taxes and other assessments | 39,383 | 40,621 |
Total Operating Expenses | 627,395 | 647,585 |
OPERATING INCOME (LOSS) | 121,842 | 32,712 |
Equity in earnings of unconsolidated affiliates | 1,144 | 490 |
Other income (expense) - net | -4,355 | 219 |
Interest expense | 12,310 | 8,992 |
INCOME (LOSS) BEFORE INCOME TAXES | 106,321 | 24,429 |
INCOME TAX EXPENSE (BENEFIT) | 42,103 | 5,470 |
Net income (loss) | 64,218 | 18,959 |
Dividends on Washington Gas preferred stock | 330 | 330 |
NET INCOME (LOSS) APPLICABLE TO COMMON STOCK | 63,888 | 18,629 |
AVERAGE COMMON SHARES OUTSTANDING | ||
Basic | 49,946 | 51,816 |
Diluted | 50,091 | 51,827 |
EARNINGS (LOSS) PER AVERAGE COMMON SHARE | ||
Basic | $1.28 | $0.36 |
Diluted | $1.28 | $0.36 |
DIVIDENDS DECLARED PER COMMON SHARE | $0.44 | $0.42 |
Washington Gas Light Company | ||
OPERATING REVENUES | ||
Utility | 387,193 | 390,415 |
OPERATING EXPENSES | ||
Utility cost of gas | 135,165 | 190,695 |
Operation and maintenance | 74,957 | 72,072 |
Depreciation and amortization | 26,604 | 25,041 |
General taxes and other assessments | 35,844 | 37,378 |
Total Operating Expenses | 272,570 | 325,186 |
OPERATING INCOME (LOSS) | 114,623 | 65,229 |
Other income (expense) - net | -450 | -180 |
Interest expense | 10,264 | 8,879 |
INCOME (LOSS) BEFORE INCOME TAXES | 103,909 | 56,170 |
INCOME TAX EXPENSE (BENEFIT) | 38,958 | 17,363 |
Net income (loss) | 64,951 | 38,807 |
Dividends on Washington Gas preferred stock | 330 | 330 |
NET INCOME (LOSS) APPLICABLE TO COMMON STOCK | $64,621 | $38,477 |
Consolidated_Statement_of_Comp
Consolidated Statement of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
WGL Holdings, Inc. | ||||
Net Income (Loss) | $64,218 | $18,959 | ||
Qualified cash flow hedging instruments | -8,265 | [1] | 0 | [1] |
Pension and other postretirement benefit plans | ||||
Change in prior service cost (credit) | -171 | [2] | -35 | [2] |
Change in actuarial net loss (gain) | 484 | [2] | 364 | [2] |
Total pension and other postretirement benefit plans | 313 | 329 | ||
TOTAL OTHER COMPREHENSIVE INCOME (LOSS) BEFORE TAX | -7,952 | 329 | ||
INCOME TAX EXPENSE (BENEFIT) RELATED TO OTHER COMPREHENSIVE INCOME | -3,947 | 130 | ||
OTHER COMPREHENSIVE INCOME (LOSS) | -4,005 | 199 | ||
COMPRHENSIVE INCOME (LOSS) | 60,213 | 19,158 | ||
Washington Gas Light Company | ||||
Net Income (Loss) | 64,951 | 38,807 | ||
Pension and other postretirement benefit plans | ||||
Change in prior service cost (credit) | -171 | [3] | -35 | [3] |
Change in actuarial net loss (gain) | 484 | [3] | 364 | [3] |
Total pension and other postretirement benefit plans | 313 | 329 | ||
TOTAL OTHER COMPREHENSIVE INCOME (LOSS) BEFORE TAX | 313 | 329 | ||
INCOME TAX EXPENSE (BENEFIT) RELATED TO OTHER COMPREHENSIVE INCOME | 124 | 130 | ||
OTHER COMPREHENSIVE INCOME (LOSS) | 189 | 199 | ||
COMPRHENSIVE INCOME (LOSS) | $65,140 | $39,006 | ||
[1] | (a) Cash flow hedging instruments represent interest rate swap agreements on debt issuances. Refer to Note 8-Derivative and weather-related instruments for further discussion of the interest rate swap agreements. | |||
[2] | (b) These accumulated other comprehensive income components are included in the computation of net periodic benefit cost. Refer to Note 14-Pension and other post-retirement benefit plans for additional details. | |||
[3] | (a) These accumulated other comprehensive income components are included in the computation of net periodic benefit cost. Refer to Note #14-Pension and other post-retirement benefit plans for additional details. |
Consolidated_Statement_of_Cash
Consolidated Statement of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
WGL Holdings, Inc. | ||
OPERATING ACTIVITIES | ||
Net income (loss) | $64,218 | $18,959 |
ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | ||
Depreciation and amortization | 29,360 | 26,590 |
Amortization of: | ||
Other regulatory assets and liabilities-net | 327 | 360 |
Debt related costs | 240 | 26 |
Deferred income taxes-net | 62,774 | 4,953 |
Accrued/deferred pension and other post-retirement benefit cost | 4,776 | 7,796 |
Compensation expense related to stock-based awards | 338 | 691 |
Provision for doubtful accounts | 3,575 | 1,920 |
Impairment loss | 770 | |
Investment impairment | 5,625 | |
Other non-cash charges (credits)-net | 2,139 | 1,165 |
CHANGES IN ASSETS AND LIABILITIES | ||
Accounts receivable and unbilled revenues-net | -226,539 | -282,888 |
Gas costs and other regulatory assets/liabilities-net | 40,397 | 52,125 |
Storage gas | 36,691 | 105,423 |
Prepaid taxes | 18,765 | -37,982 |
Other prepayments | 1,164 | -8,280 |
Accounts payable and other accrued liabilities | 53,646 | 44,217 |
Wages payable | -1,998 | -1,640 |
Customer deposits and advance payments | 10,355 | 2,081 |
Unamortized investment tax credits | 15,071 | 28,490 |
Accrued taxes | 13,302 | 13,812 |
Accrued interest | 10,139 | 7,063 |
Other current assets | -13,803 | 3,558 |
Other current liabilities | 12,136 | -9,183 |
Deferred gas costs-net | -3,632 | -110,692 |
Deferred assets-other | -2,551 | -7,789 |
Deferred liabilities-other | -65,185 | 13,322 |
Derivatives | 59,955 | -121,421 |
Other-net | 317 | -8,897 |
Net Cash Provided by (Used in) Operating Activities | 11,692 | -12,609 |
FINANCING ACTIVITIES | ||
Long-term debt issued | 296,481 | 75,252 |
Long-term debt retired | 0 | -37,000 |
Debt issuance costs | -2,443 | 0 |
Notes payable issued (retired)-net | -103,500 | 70,200 |
Dividends on common stock and preferred stock | -22,449 | -22,089 |
Repurchase of common stock | -41,485 | 0 |
Other financing activities-net | 0 | 1,415 |
Net Cash Provided by (Used in) Financing Activities | 126,604 | 87,778 |
INVESTING ACTIVITIES | ||
Capital expenditures (excluding AFUDC) | -132,954 | -58,305 |
Investments in non-utility interests | -8,059 | -15,532 |
Distributions from non-utility interests | 1,296 | 0 |
Net Cash Used in Investing Activities | -139,717 | -73,837 |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | -1,421 | 1,332 |
Cash and Cash Equivalents at Beginning of Year | 8,811 | 3,478 |
Cash and Cash Equivalents at End of Period | 7,390 | 4,810 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
Income taxes paid- net | 880 | 7,376 |
Interest paid | 1,839 | 1,789 |
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING ACTIVITIES | ||
Project debt financing activities - net | -2,032 | 253 |
Capital expenditure accruals included in accounts payable and other accrued liabilities | 24,649 | 16,058 |
Dividends paid in common stock | 1,306 | 1,312 |
Washington Gas Light Company | ||
OPERATING ACTIVITIES | ||
Net income (loss) | 64,951 | 38,807 |
ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | ||
Depreciation and amortization | 26,604 | 25,041 |
Amortization of: | ||
Other regulatory assets and liabilities-net | 164 | 137 |
Debt related costs | 339 | 187 |
Deferred income taxes-net | 54,492 | 10,170 |
Accrued/deferred pension and other post-retirement benefit cost | 4,751 | 7,682 |
Compensation expense related to stock-based awards | 2,305 | 1,574 |
Provision for doubtful accounts | 2,800 | 1,815 |
Impairment loss | 0 | 770 |
Other non-cash charges (credits)-net | 2,564 | 1,284 |
CHANGES IN ASSETS AND LIABILITIES | ||
Accounts receivable and unbilled revenues-net | -179,268 | -222,084 |
Gas costs and other regulatory assets/liabilities-net | 40,397 | 52,125 |
Storage gas | 6,003 | 8,078 |
Other prepayments | -5,313 | -8,009 |
Accounts payable and other accrued liabilities | 39,282 | 59,119 |
Wages payable | -1,517 | -1,497 |
Customer deposits and advance payments | 10,214 | 2,081 |
Accrued taxes | -2,612 | 9,616 |
Accrued interest | 8,628 | 7,063 |
Other current assets | -733 | -1,894 |
Other current liabilities | 376 | -1,766 |
Deferred gas costs-net | -3,632 | -110,692 |
Deferred assets-other | -3,404 | 8,344 |
Deferred liabilities-other | -3,074 | 1,866 |
Derivatives | -57,063 | 84,424 |
Other-net | 191 | -1,635 |
Net Cash Provided by (Used in) Operating Activities | 7,445 | -27,394 |
FINANCING ACTIVITIES | ||
Long-term debt issued | 50,000 | 75,252 |
Long-term debt retired | 0 | -37,000 |
Debt issuance costs | -672 | 0 |
Notes payable issued (retired)-net | 49,000 | 63,500 |
Dividends on common stock and preferred stock | -19,722 | -19,373 |
Other financing activities-net | 0 | -595 |
Net Cash Provided by (Used in) Financing Activities | 78,606 | 81,784 |
INVESTING ACTIVITIES | ||
Capital expenditures (excluding AFUDC) | -87,110 | -54,388 |
Net Cash Used in Investing Activities | -87,110 | -54,388 |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | -1,059 | 2 |
Cash and Cash Equivalents at Beginning of Year | 1,060 | 0 |
Cash and Cash Equivalents at End of Period | 1 | 2 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
Income taxes paid- net | 700 | 7,200 |
Interest paid | 1,304 | 1,676 |
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING ACTIVITIES | ||
Project debt financing activities - net | -2,032 | 253 |
Capital expenditure accruals included in accounts payable and other accrued liabilities | $17,734 | $11,471 |
Accounting_Policies
Accounting Policies | 3 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Organization Consolidation And Presentation Of Financial Statements Disclosure Text Block | NOTE 1. ACCOUNTING POLICIES |
Basis of Presentation | |
WGL Holdings, Inc. (WGL) is a holding company that owns all of the shares of common stock of Washington Gas Light Company (Washington Gas), a regulated natural gas utility, and all of the shares of common stock of Washington Gas Resources Corporation (Washington Gas Resources), Hampshire Gas Company (Hampshire) and Crab Run Gas Company. Washington Gas Resources owns all of the shares of common stock of four non-utility subsidiaries that include WGL Energy Services, Inc. (WGL Energy Services), WGL Energy Systems, Inc. (WGL Energy Systems), WGL Midstream and WGSW, Inc. (WGSW). Except where the content clearly indicates otherwise, “WGL,” “we,” “us” or “our” refers to the holding company or the consolidated entity of WGL Holdings, Inc. and all of its subsidiaries. Unless otherwise noted, these notes apply equally to WGL and Washington Gas. | |
The condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Therefore, certain financial information and note disclosures accompanying annual financial statements prepared in accordance with generally accepted accounting principles in the United States of America (GAAP) are omitted in this interim report. The interim consolidated financial statements and accompanying notes should be read in conjunction with the combined Annual Report on Form 10-K for WGL and Washington Gas for the fiscal year ended September 30, 2014. Due to the seasonal nature of our businesses, the results of operations for the periods presented in this report are not necessarily indicative of actual results for the full fiscal years ending September 30, 2015 and 2014 of either WGL or Washington Gas. | |
The accompanying unaudited financial statements for WGL and Washington Gas reflect all normal recurring adjustments that are necessary, in our opinion, to present fairly the results of operations in accordance with GAAP. Certain reclassifications have been recast to conform to current year presentation. | |
For a complete description of our accounting policies, refer to Note 1 of the Notes to Consolidated Financial Statements of the combined Annual Report on Form 10-K for WGL and Washington Gas for the fiscal year ended September 30, 2014. | |
Storage Gas Valuations | |
For Washington Gas and WGL Energy Services, storage gas inventory is stated at the lower-of-cost or market as determined using the first-in, first-out method. For WGL Midstream, storage gas inventory is stated at the lower-of-cost or market using the weighted average cost method. Interim inventory losses attributable to lower-of-cost or market adjustments may be reversed if the market value of the inventory is recovered by the end of the same fiscal year. | |
For the three months ended December 31, 2014, Washington Gas recorded a decrease to net income due to a lower-of-cost or market adjustment of $0.7 million. For the three months ended December 31, 2013, Washington Gas did not record any lower-of-cost or market adjustments. For the three months ended December 31, 2014 and 2013, WGL Energy Services did not record any lower-of-cost or market adjustments. For the three months ended December 31, 2014, WGL Midstream recorded a decrease to net income due to a lower-of-cost or market adjustment of $17.5 million. For the three months ended December 31, 2013, WGL Midstream recorded a minimal decrease to net income for lower-of-cost or market adjustments. | |
ACCOUNTING STANDARDS ADOPTED IN FISCAL YEAR 2015 | |
ASU 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (Topic 740) | |
The standard requires an unrecognized tax benefit, or a portion of an unrecognized tax benefit to be presented in the financial statements as a reduction to a deferred tax asset for net operating loss carryforwards, a similar loss, or a tax credit carryforward. | |
1-Oct-14 | |
As a result of the implementation of this standard, we reduced our deferred tax assets by a portion of our unrecognized tax benefits. The adoption of this standard did not have a material effect on our financial statements. | |
OTHER NEWLY ISSUED ACCOUNTING STANDARDS | |
ASU 2014-09, Revenue from Contracts with Customers (Topic 606) | |
The standard establishes a comprehensive revenue recognition model clarifying the method used to determine the timing and requirements for revenue recognition from contracts with customers. The disclosure requirements under the new standard will enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. | |
1-Oct-17 | |
We are in the process of evaluating the impact the adoption of this standard will have on our financial statements. |
Accounts_Payable_and_Other_Acc
Accounts Payable and Other Accrued Liabilities | 3 Months Ended | |||||
Dec. 31, 2014 | ||||||
Accounts Payable and Other Accrued Liabilities [Abstract] | ||||||
Accounts Payable and Other Accrued Liabilities | NOTE 2. ACCOUNTS PAYABLE AND OTHER ACCRUED LIABILITIES | |||||
The tables below provide details for the amounts included in “Accounts payable and other accrued liabilities” on the balance sheets for both WGL and Washington Gas. | ||||||
WGL Holdings, Inc. | ||||||
(In millions) | 31-Dec-14 | 30-Sep-14 | ||||
Accounts payable—trade | $ | 300.9 | $ | 278.8 | ||
Employee benefits and payroll accruals | 14.3 | 19.8 | ||||
Other accrued liabilities | 21.2 | 14.6 | ||||
Total | $ | 336.4 | $ | 313.2 | ||
Washington Gas Light Company | ||||||
(In millions) | 31-Dec-14 | 30-Sep-14 | ||||
Accounts payable—trade | $ | 144.4 | $ | 146.4 | ||
Employee benefits and payroll accruals | 13.5 | 18.2 | ||||
Other accrued liabilities | 16.3 | 11.9 | ||||
Total | $ | 174.2 | $ | 176.5 |
ShortTerm_Debt
Short-Term Debt | 3 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Short-Term Debt [Abstract] | |||||||
Short-Term Debt | NOTE 3. SHORT-TERM DEBT | ||||||
WGL and Washington Gas satisfy their short-term financing requirements through the sale of commercial paper or through bank borrowings. Due to the seasonal nature of the regulated utility and retail energy-marketing segments, short-term financing requirements can vary significantly during the year. Revolving credit agreements are maintained to support outstanding commercial paper and to permit short-term borrowing flexibility. Both WGL and Washington Gas' policy is to maintain bank credit facilities in amounts equal to or greater than the expected maximum commercial paper position. The following is a summary of committed credit available at December 31, 2014 and September 30, 2014. | |||||||
Committed Credit Available (In millions) | |||||||
31-Dec-14 | WGL(b) | Washington Gas | Total Consolidated | ||||
Committed credit agreements | |||||||
Unsecured revolving credit facility, expires December 19, 2019(a) | $ | 450 | $ | 350 | $ | 800 | |
Less: Commercial Paper | -212 | -138 | -350 | ||||
Net committed credit available | $ | 238 | $ | 212 | $ | 450 | |
Weighted average interest rate | 0.28% | 0.22% | 0.26% | ||||
30-Sep-14 | WGL(b) | Washington Gas | Total Consolidated | ||||
Committed credit agreements | |||||||
Unsecured revolving credit facility, expires April 3, 2017(a) | $ | 450 | $ | 350 | $ | 800 | |
Less: Commercial Paper | -364.5 | -89 | -453.5 | ||||
Net committed credit available | $ | 85.5 | $ | 261 | $ | 346.5 | |
Weighted average interest rate | 0.20% | 0.13% | 0.19% | ||||
(a)Both WGL and Washington Gas have the right to request extensions with the banks’ approval. WGL's revolving credit facility permits it to borrow an additional $100 million, with the banks’ approval, for a total of $550 million. Washington Gas’ revolving credit facility permits it to borrow an additional $100 million, with the banks’ approval, for a total of $450 million. | |||||||
(b)WGL includes all subsidiaries other than Washington Gas Light Company. | |||||||
In December 2014, both WGL and Washington Gas entered into a first amendment to their respective credit agreements, each dated April 3, 2012. The amendments extend the maturity date of the credit facilities from April 3, 2017 to December 19, 2019. The credit agreements each have two one-year extension options. At December 31, 2014 and September 30, 2014, there were no outstanding bank loans from WGL's or Washington Gas' revolving credit facilities. |
LongTerm_Debt
Long-Term Debt | 3 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Long-Term Debt [Abstract] | ||||||||
Long-Term Debt | NOTE 4. LONG-TERM DEBT | |||||||
UNSECURED NOTES | ||||||||
WGL and Washington Gas issue long-term 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. | ||||||||
At December 31, 2014 and September 30, 2014, WGL had the capacity under a shelf registration to issue an unspecified amount of long-term Senior Notes and Washington Gas had the capacity to issue up to $275.0 million of additional long-term Medium-Term Notes (MTNs). | ||||||||
The following tables show the outstanding notes as of December 31, 2014 and September 30, 2014. | ||||||||
Senior Notes, MTNs and Private Placement Notes Outstanding | ||||||||
($ In millions) | WGL(a) | Washington Gas | Total Consolidated | |||||
31-Dec-14 | ||||||||
Long-term notes (b) | $ | 250 | $ | 741 | $ | 991 | ||
Weighted average interest rate | 3.66% | 5.56% | 5.06% | |||||
30-Sep-14 | ||||||||
Long-term notes (b) | $ | - | $ | 691 | $ | 691 | ||
Weighted average interest rate | n/a | 5.65% | 5.65% | |||||
(a)WGL includes all subsidiaries other than Washington Gas Light Company. | ||||||||
(b)Includes Senior Notes for WGL and both MTNs and private placement notes for Washington Gas. Includes current maturities and excludes any unamortized discounts or premiums. | ||||||||
The following tables show Senior Notes, MTN and private placement issuances and retirements for the three months ended December 31, 2014 and 2013. There were no retirements for WGL or Washington Gas for the three months ended December 31, 2014 and there were no issuances for WGL for the three months ended December 31, 2013. | ||||||||
Senior Notes, MTNs and Private Placement Issuances | ||||||||
($ In millions) | Principal (a) | Interest Rate | Effective Cost(b) | Nominal Maturity Date | ||||
Three Months Ended December 31, 2014 | ||||||||
WGL | ||||||||
Issuances: | ||||||||
10/24/14 | $ | 100 | 2.25% | 2.42% | 11/1/19 | |||
10/24/14 | 125 | 4.60% | 5.11% | 11/1/44 | ||||
12/16/14 | 25 | 4.60% | 5.53% | 11/1/44 | ||||
Total | $ | 250 | ||||||
Washington Gas | ||||||||
Issuances: | ||||||||
12/15/14 | $ | 50 | 4.24% | 4.41% | 12/15/44 | |||
Total | $ | 50 | ||||||
Total consolidated issuances | $ | 300 | ||||||
(a)Excludes debt discounts or premiums. | ||||||||
(b)The estimated effective cost of the issued notes, including consideration of issuance fees and hedge costs. | ||||||||
MTN and Private Placement Issuances and Retirements | ||||||||
($ In millions) | Principal (a) | Interest Rate | Effective Cost(b) | Nominal Maturity Date | ||||
Three Months Ended December 31, 2013 | ||||||||
Washington Gas | ||||||||
Issuances: | ||||||||
12/5/13 | $ | 75 | 5.00% | 4.95% | 12/15/43 | |||
Total | $ | 75 | ||||||
Retirements: | ||||||||
11/7/13 | $ | 37 | 4.88% | n/a | 11/7/13 | |||
Total | $ | 37 | ||||||
(a)Excludes debt discounts or premiums. | ||||||||
(b)The estimated effective cost of the issued notes, including consideration of issuance fees and hedge costs. |
Common_Shareholders_Equity
Common Shareholders' Equity | 3 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Common Shareholders' Equity [Abstract] | ||||||||||||||
Common Shareholders' Equity | NOTE 5. COMMON SHAREHOLDERS' EQUITY | |||||||||||||
The tables below reflect the components of “Common shareholders' equity” for WGL and “Common shareholder's equity” for Washington Gas for the three months ended December 31, 2014. | ||||||||||||||
WGL Holdings, Inc. | ||||||||||||||
Components of Common Shareholders’ Equity | ||||||||||||||
(In thousands) | Common Stock Amount | Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss, Net of Taxes | Total | |||||||||
Balance at September 30, 2014 | $ | 525,932 | $ | 11,847 | $ | 716,758 | $ | -7,961 | $ | 1,246,576 | ||||
Net income | - | - | 64,218 | - | 64,218 | |||||||||
Other comprehensive loss | - | - | - | -4,005 | -4,005 | |||||||||
Repurchase of common stock | -41,485 | - | - | - | -41,485 | |||||||||
Stock-based compensation | 22 | -474 | - | - | -452 | |||||||||
Dividends declared: | ||||||||||||||
Common stock | - | - | -21,872 | - | -21,872 | |||||||||
Preferred stock | - | - | -330 | - | -330 | |||||||||
Balance at December 31, 2014 | $ | 484,469 | $ | 11,373 | $ | 758,774 | $ | -11,966 | $ | 1,242,650 | ||||
Washington Gas Light Company | ||||||||||||||
Components of Common Shareholder's Equity | ||||||||||||||
(In thousands) | Common Stock Amount | Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss, Net of Taxes | Total | |||||||||
Balance at September 30, 2014 | $ | 46,479 | $ | 480,620 | $ | 529,480 | $ | -6,413 | $ | 1,050,166 | ||||
Net income | - | - | 64,951 | - | 64,951 | |||||||||
Other comprehensive income | - | - | - | 189 | 189 | |||||||||
Stock-based compensation | - | -500 | - | - | -500 | |||||||||
Dividends declared: | ||||||||||||||
Common stock | - | - | -19,262 | - | -19,262 | |||||||||
Preferred stock | - | - | -330 | - | -330 | |||||||||
Balance at December 31, 2014 | $ | 46,479 | $ | 480,120 | $ | 574,839 | $ | -6,224 | $ | 1,095,214 | ||||
WGL had 49,708,750 and 50,656,553 shares issued of common stock at December 31, 2014 and September 30, 2014, respectively. Washington Gas had 46,479,536 shares issued of common stock at both December 31, 2014 and September 30, 2014. |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Earnings Per Share [Abstract] | |||||||
Earnings Per Share | NOTE 6. EARNINGS PER SHARE | ||||||
Basic EPS of WGL is computed by dividing net income by the weighted average number of common shares outstanding during the reported period. Diluted EPS assumes the issuance of common shares pursuant to stock-based compensation plans at the beginning of the applicable period unless the effect of such issuance would be anti-dilutive. The following table reflects the computation of our basic and diluted EPS for the three months ended December 31, 2014 and 2013. | |||||||
Basic and Diluted EPS | |||||||
(in thousands, except per share data) | Net Income Applicable to Common Stock | Shares | Per Share Amount | ||||
Three Months Ended December 31, 2014 | |||||||
Basic EPS | $ | 63,888 | 49,946 | $ | 1.28 | ||
Stock-based compensation plans | - | 145 | |||||
Diluted EPS | $ | 63,888 | 50,091 | $ | 1.28 | ||
Three Months Ended December 31, 2013 | |||||||
Basic EPS | $ | 18,629 | 51,816 | $ | 0.36 | ||
Stock-based compensation plans | - | 11 | |||||
Diluted EPS | $ | 18,629 | 51,827 | $ | 0.36 | ||
There were no anti-dilutive shares for the three months ended December 31, 2014 or December 31, 2013. |
Income_Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2014 | |
Income Taxes [Abstract] | |
Income Taxes | NOTE 7. INCOME TAXES |
As of December 31, 2014 and September 30, 2014, our uncertain tax positions were approximately $29.5 million and $32.6 million, respectively, primarily due to the change in tax accounting for repairs. If the amounts of unrecognized tax benefits are eventually realized, it would not materially impact the effective tax rate. It is reasonably possible that the amount of the unrecognized tax benefit with respect to some of WGL's and Washington Gas' uncertain tax positions will significantly increase or decrease in the next 12 months, however at this time an estimate of the range of reasonably possible outcomes cannot be determined. | |
Under ASC Topic 740, Income Taxes, 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 three months ended December 31, 2014 and 2013, we accrued no expense for interest on uncertain tax positions. At December 31, 2014 we did not have an accrual of interest expense related to uncertain tax positions. At September 30, 2014, we had a total accrual of $0.1 million of interest expense related to uncertain tax positions included in other deferred credits in the accompanying balance sheets. | |
WGL files consolidated federal, a combined District of Columbia, West Virginia, and California return and various other state tax returns. We are no longer subject to income tax examinations by the Internal Revenue Service for years ended prior to September 30, 2011. Substantially all state income tax years in major jurisdictions are closed for years ended prior to September 30, 2010. | |
Washington Gas charged the Maryland portion of the Medicare Part D (Med D) regulatory asset to tax expense during the fiscal year ended September 30, 2012 based on positions taken by the Maryland Public Service Commission (PSC of MD) in Washington Gas' rate case during that fiscal year that didn't permit recovery. Washington Gas received an order in the first quarter of fiscal year ended September 30, 2014 from the PSC of MD that did allow recovery of the Med D regulatory asset over a five year amortization period beginning December 2013. Therefore, the reinstatement of the regulatory asset is reflected in the effective tax rate for the three months ended December 31, 2013. |
Derivative_and_Weather_Related
Derivative and Weather Related Instruments | 3 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Derivative and Weather-Related Instruments [Abstract] | ||||||||||||||
Derivative and Weather-Related Instruments | NOTE 8. DERIVATIVE AND WEATHER-RELATED INSTRUMENTS | |||||||||||||
DERIVATIVE INSTRUMENTS | ||||||||||||||
Regulated Utility Operations | ||||||||||||||
Washington Gas enters into contracts related to the sale and purchase of natural gas that qualify as derivative instruments and are accounted for under ASC Topic 815. These derivative instruments are recorded at fair value on our balance sheet and Washington Gas does not 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 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 locking in operating margins that Washington Gas will ultimately realize. The derivatives used under this program are subject to mark-to-market accounting treatment while the capacity and transportation resources are not. | ||||||||||||||
Regulatory sharing mechanisms allow the profit from these transactions to be shared between Washington Gas' shareholders and customers; therefore, any changes in fair value are recorded through earnings, or as regulatory assets or liabilities to the extent that gains and losses associated with these derivative instruments will be included in the rates charged to customers when they are realized. Valuation changes for the portion of net profits to be retained for shareholders may cause significant period-to-period volatility in earnings from unrealized gains and losses. This volatility does not change the locked-in operating margins that Washington Gas expects to ultimately realize from these transactions through the use of its storage and transportation capacity resources. | ||||||||||||||
All physically and financially settled contracts under our asset optimization program are reported on a net basis in the statements of income in “Utility cost of gas.” Total net margins recorded to “Utility cost of gas” after sharing and management fees associated with all asset optimization transactions for the three months ended December 31, 2014 was a gain of $31.1 million including an unrealized gain of $25.0 million. During the three months ended December 31, 2013 we recorded a loss of $19.8 million including an unrealized loss of $26.2 million. | ||||||||||||||
Managing Price Risk. To manage price risk associated with acquiring natural gas supply for utility customers, Washington Gas enters into forward contracts, option contracts, financial contracts and other contracts, as authorized by its regulators. These instruments are accounted for as derivative instruments. Any gains and losses associated with these derivatives are recorded as regulatory liabilities or assets, respectively, to reflect the rate treatment for these economic hedging activities. | ||||||||||||||
Managing Interest-Rate Risk. Washington Gas utilizes derivative instruments that are designed to minimize the risk of interest-rate volatility associated with planned issuances of debt securities. Any gains and losses associated with these types of derivatives are recorded as regulatory liabilities or assets, respectively, and amortized in accordance with regulatory requirements, typically over the life of the newly issued debt. | ||||||||||||||
Non-Utility Operations | ||||||||||||||
Managing Price Risk. WGL Energy Services enters into certain derivative contracts as part of managing the price risk associated with the sale and purchase of natural gas and electricity. WGL Midstream enters into derivative contracts for the purpose of optimizing its storage and transportation capacity as well as managing the transportation and storage assets on behalf of third parties. As the storage and transportation capacities utilized by WGL Midstream are not considered to be derivative instruments, they are not recorded at fair value on our consolidated balance sheets. Derivative instruments are recorded at fair value on our consolidated balance sheets. WGL Energy Services and WGL Midstream do not designate these derivatives as hedges under ASC Topic 815; therefore, changes in the fair value of these derivative instruments are reflected in the earnings of our non-utility operations and may cause significant period-to-period volatility in earnings. | ||||||||||||||
Managing Interest-Rate Risk. WGL utilizes derivative instruments that are designed to minimize the risk of interest-rate volatility associated with future debt issuances. WGL elected cash flow hedge accounting for its interest rate derivative instruments which settled with the issuance of the related debt issuance in the first quarter of 2015. The effective portion of the gains and losses on the hedge were recorded within other comprehensive income and are being amortized over the life of the debt (through 2044). The amount of ineffectiveness recorded to earnings for the period from the cash flow hedge was $0.4 million. The amortization will be minimal for fiscal 2015. | ||||||||||||||
Consolidated Operations | ||||||||||||||
Reflected in the tables below is information for WGL as well as Washington Gas. The information for WGL includes derivative instruments for both utility and non-utility operations. | ||||||||||||||
At December 31, 2014 and September 30, 2014, respectively, the absolute notional amounts of our derivatives are as follows: | ||||||||||||||
Absolute Notional Amounts | ||||||||||||||
of Open Positions on Derivative Instruments | ||||||||||||||
31-Dec-14 | Notional Amounts | |||||||||||||
Derivative transactions | WGL Holdings | Washington Gas | ||||||||||||
Natural Gas (In millions of therms) | ||||||||||||||
Asset Optimization | 21,580.50 | 14,394.00 | ||||||||||||
Retail sales | 29.3 | - | ||||||||||||
Other risk-management activities | 1,672.60 | 1,430.80 | ||||||||||||
Electricity (In millions of kWhs) | ||||||||||||||
Retail sales | 4,030.70 | - | ||||||||||||
Other risk-management activities | 19,133.30 | - | ||||||||||||
Interest Rate Swaps (In millions of dollars) | - | - | ||||||||||||
Absolute Notional Amounts | ||||||||||||||
of Open Positions on Derivative Instruments | ||||||||||||||
30-Sep-14 | Notional Amounts | |||||||||||||
Derivative transactions | WGL Holdings | Washington Gas | ||||||||||||
Natural Gas (In millions of therms) | ||||||||||||||
Asset Optimization | 20,593.30 | 13,740.90 | ||||||||||||
Retail sales | 44.7 | - | ||||||||||||
Other risk-management activities | 1,641.30 | 1,398.20 | ||||||||||||
Electricity (In millions of kWhs) | ||||||||||||||
Retail sales | 3,831.40 | - | ||||||||||||
Other risk-management activities | 16,734.10 | - | ||||||||||||
Warrants (In millions of shares) | 4.6 | - | ||||||||||||
Interest Rate Swaps (In millions of dollars) | 150 | - | ||||||||||||
The following tables present the balance sheet classification for all derivative instruments as of December 31, 2014 and September 30, 2014. | ||||||||||||||
WGL Holdings, Inc. | ||||||||||||||
Balance Sheet Classification of Derivative Instruments | ||||||||||||||
(In millions) | Derivative Instruments Not Designated as Hedging Instruments | Derivative Instruments Designated as Hedging Instruments | ||||||||||||
As of December 31, 2014 | Gross Derivative Assets | Gross Derivative Liabilities | Gross Derivative Assets | Gross Derivative Liabilities | Netting of Collateral | Total(a) | ||||||||
Current Assets—Derivatives | $ | 81.5 | $ | -30.1 | $ | - | $ | - | $ | -11.5 | $ | 39.9 | ||
Deferred Charges and Other Assets—Derivatives | 27.8 | - | - | - | - | 27.8 | ||||||||
Current Liabilities—Derivatives | 11.6 | -70.6 | - | - | 4.2 | -54.8 | ||||||||
Deferred Credits—Derivatives | 22.6 | -286.6 | - | - | 4.8 | -259.2 | ||||||||
Total | $ | 143.5 | $ | -387.3 | $ | - | $ | - | $ | -2.5 | $ | -246.3 | ||
As of September 30, 2014 | ||||||||||||||
Current Assets—Derivatives | $ | 20.8 | $ | -2.5 | $ | - | $ | - | $ | - | $ | 18.3 | ||
Deferred Charges and Other Assets—Derivatives | 18.7 | - | - | - | - | 18.7 | ||||||||
Current Liabilities—Derivatives | 15.4 | -70.3 | - | -1.7 | 8 | -48.6 | ||||||||
Deferred Credits—Derivatives | 17.7 | -316.4 | - | - | 4 | -294.7 | ||||||||
Total | $ | 72.6 | $ | -389.2 | $ | - | $ | -1.7 | $ | 12 | $ | -306.3 | ||
Washington Gas Light Company | ||||||||||||||
Balance Sheet Classification of Derivative Instruments(b) | ||||||||||||||
(In millions) | ||||||||||||||
As of December 31, 2014 | Gross Derivative Assets | Gross Derivative Liabilities | Netting of Collateral | Total(a) | ||||||||||
Current Assets—Derivatives | $ | 26.3 | $ | -14.7 | $ | - | $ | 11.6 | ||||||
Deferred Charges and Other Assets—Derivatives | 11.7 | - | - | 11.7 | ||||||||||
Current Liabilities—Derivatives | 4.9 | -29.8 | - | -24.9 | ||||||||||
Deferred Credits—Derivatives | 4 | -226.7 | - | -222.7 | ||||||||||
Total | $ | 46.9 | $ | -271.2 | $ | - | $ | -224.3 | ||||||
As of September 30, 2014 | ||||||||||||||
Current Assets—Derivatives | $ | 3.9 | $ | - | $ | - | $ | 3.9 | ||||||
Deferred Charges and Other Assets—Derivatives | 9.5 | - | - | 9.5 | ||||||||||
Current Liabilities—Derivatives | 8.6 | -43.2 | 0.7 | -33.9 | ||||||||||
Deferred Credits—Derivatives | 4.2 | -265.2 | 0.2 | -260.8 | ||||||||||
Total | $ | 26.2 | $ | -308.4 | $ | 0.9 | $ | -281.3 | ||||||
(a)WGL has elected to offset the fair value of recognized derivative instruments against the right to reclaim or the obligation to return collateral for derivative instruments executed under the same master netting arrangement in accordance with ASC 815. All recognized derivative contracts and associated financial collateral subject to a master netting arrangement or similar that is eligible for offset under ASC 815 have been presented net in the balance sheet. | ||||||||||||||
(b)Washington Gas did not have any derivative instruments outstanding that were designated as hedging instruments at December 31, 2014 or September 30, 2014. | ||||||||||||||
The following table presents all gains and losses associated with derivative instruments for the three months ended December 31, 2014 and 2013. | ||||||||||||||
Gains and Losses on Derivative Instruments | ||||||||||||||
WGL Holdings, Inc. | Washington Gas Light Company | |||||||||||||
(In millions) | ||||||||||||||
Three Months Ended December 31, | 2014 | 2013 | 2014 | 2013 | ||||||||||
Recorded to income | ||||||||||||||
Operating revenues—non-utility | $ | 75.4 | $ | -48.5 | $ | - | $ | - | ||||||
Utility cost of gas | 25.8 | -27.3 | 25.8 | -27.3 | ||||||||||
Non-utility cost of energy-related sales | -49.6 | 16.3 | - | - | ||||||||||
Other income-net | - | 0.1 | - | - | ||||||||||
Interest expense | -0.4 | - | - | - | ||||||||||
Recorded to regulatory assets | ||||||||||||||
Gas costs | 28.2 | -78.3 | 28.2 | -78.3 | ||||||||||
Recorded to other comprehensive income(a) | -8.2 | - | - | - | ||||||||||
Total | $ | 71.2 | $ | -137.7 | $ | 54 | $ | -105.6 | ||||||
(a) Represents the effective portion of our cash flow hedge. | ||||||||||||||
Collateral | ||||||||||||||
WGL utilizes standardized master netting agreements, which facilitate the netting of cash flows into a single net exposure for a given counterparty. As part of these master netting agreements, cash, letters of credit and parental guarantees may be required to be posted or obtained from counterparties in order to mitigate credit risk related to both derivatives and non-derivative positions. Under WGL's offsetting policy, collateral balances are offset against the related counterparties' derivative positions to the extent the application would not result in the over-collateralization of those derivative positions on the balance sheet. At December 31, 2014, Washington Gas, WGL Energy Services and WGL Midstream posted $1.3 million, $12.2 million and $5.3 million, respectively, of collateral deposits with counterparties that were not offset against open and settled derivative contracts. At September 30, 2014, Washington Gas, WGL Energy Services and WGL Midstream posted $8.2 million, $5.7 million and $11.4 million, respectively, of collateral deposits with counterparties that were not offset against open and settled derivative contracts. In addition, at December 31, 2014 and September 30, 2014, Washington Gas held $0.3 million and $2.5 million, respectively of cash collateral representing an obligation to counterparties that was not offset against open and settled derivative contracts. Any collateral posted that is not offset against open and settled derivative contracts is included in “Other prepayments” in the accompanying balance sheet. Collateral received and not offset against open and settled derivative contracts is included in “Customer deposits and advance payments” in the accompanying balance sheet. | ||||||||||||||
Certain derivative instruments of Washington Gas, WGL Energy Services and WGL Midstream contain contract provisions that require collateral to be posted if the credit rating of Washington Gas or WGL falls below certain levels or if counterparty exposure to WGL Energy Services or WGL Midstream exceeds a certain level. Due to counterparty exposure levels, at December 31, 2014, WGL Energy Services posted $8.9 million of collateral related to its derivative liabilities that contained credit-related contingent features. At September 30, 2014, WGL Energy Services posted $5.3 million of collateral related to these aforementioned derivative liabilities. Washington Gas and WGL Midstream were not required to post any collateral related to its derivative liabilities that contained credit-related contingent features at December 31, 2014 or September 30, 2014. 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, 2014 and September 30, 2014, respectively. | ||||||||||||||
Potential Collateral Requirements for Derivative Liabilities | ||||||||||||||
with Credit-Risk-Contingent Features | ||||||||||||||
(In millions) | WGL Holdings, Inc. | Washington Gas | ||||||||||||
31-Dec-14 | ||||||||||||||
Derivative liabilities with credit-risk-contingent features | $ | 59.4 | $ | 15.3 | ||||||||||
Maximum potential collateral requirements | 41.7 | 6.7 | ||||||||||||
30-Sep-14 | ||||||||||||||
Derivative liabilities with credit-risk-contingent features | $ | 28.8 | $ | 20.6 | ||||||||||
Maximum potential collateral requirements | 16.5 | 16.1 | ||||||||||||
Washington Gas, WGL Energy Services and WGL Midstream 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, 2014, two counterparties represented over 10% of Washington Gas' credit exposure to wholesale derivative counterparties for a total credit risk of $18.6 million; one counterparty represented over 10% of WGL Energy Services' credit exposure to wholesale counterparties for a total credit risk of $0.7 million; and two counterparties represented over 10% of WGL Midstream's credit exposure to wholesale counterparties for a total credit risk of $15.2 million. | ||||||||||||||
WEATHER-RELATED INSTRUMENTS | ||||||||||||||
Washington Gas did not use any weather-related instruments during the three months ended December 31, 2014 and 2013. | ||||||||||||||
WGL Energy Services utilizes weather-related instruments for managing the financial effects of weather risks. These instruments cover a portion of WGL Energy Services' estimated revenue or energy-related cost exposure to variations in heating or cooling degree days. These contracts provide for payment to WGL Energy Services of a fixed-dollar amount for every degree day over or under specific levels during the calculation period depending upon the type of contract executed. For the three months ended December 31, 2014 and December 31, 2013, WGL Energy Services recorded pre-tax losses of $1.7 million and $1.1 million, respectively, related to these contracts. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Fair Value Measurements [Abstract] | ||||||||||||
Fair Value Measurements | NOTE 9. FAIR VALUE MEASUREMENTS | |||||||||||
We measure the fair value of our financial assets and liabilities using a combination of the income and market approach in accordance with ASC Topic 820. These financial assets and liabilities primarily consist of (i) derivatives recorded on our balance sheet under ASC Topic 815 and short-term investments, commercial paper and long-term debt outstanding required to be disclosed at fair value. Under ASC Topic 820, fair value is defined as the exit price, representing the amount that would be received in the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To value our financial instruments, we use market data or assumptions that market participants would use, including assumptions about credit risk (both our own credit risk and the counterparty's credit risk) and the risks inherent in the inputs to valuation. | ||||||||||||
We enter into derivative contracts in the futures and over-the-counter (OTC) wholesale and retail markets. These markets are the principal markets for the respective wholesale and retail contracts. Our relevant market participants are our existing counterparties and others who have participated in energy transactions at our delivery points. These participants have access to the same market data as WGL. We value our derivative contracts based on an “in-exchange” premise, and 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. Level 1 assets and liabilities primarily include exchange traded derivatives and securities. | ||||||||||||
Level 2. Level 2 of the fair value hierarchy consists of assets or liabilities that are valued using directly or indirectly observable inputs either corroborated with market data or based on exchange traded market data. Level 2 includes fair values based on industry-standard valuation techniques that consider various assumptions: (i) quoted forward prices, including the use of mid-market pricing within a bid/ask spread; (ii) discount rates; (iii) implied volatility and (iv) other economic factors. Substantially all of these assumptions are observable throughout the full term of the instrument, can be derived from observable data or are supported by observable levels at which transactions are executed in the relevant market. At December 31, 2014 and September 30, 2014, Level 2 financial assets and liabilities included energy-related derivatives such as financial contracts, options and physical forward 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, annualized volatilities of natural gas prices, and electricity congestion prices. A significant change to any one of these inputs in isolation could result in a significant upward or downward fluctuation in the fair value measurement. These inputs may be used with industry standard valuation methodologies that result in our best estimate of fair value for the assets or liabilities at the reporting date. | ||||||||||||
Our Risk Analysis and Mitigation (RA&M) Group determines the valuation policies and procedures. The RA&M Group reports to WGL's Chief Financial Officer. In accordance with WGL's valuation policy, we may utilize a variety of valuation methodologies to fair value Level 3 derivative contracts including internally developed valuation inputs and pricing models. The prices used in our valuations are corroborated using multiple pricing sources, and we periodically conduct assessments to determine whether each valuation model is appropriate for its intended purpose. The RA&M Group also evaluates changes in fair value measurements on a daily basis. | ||||||||||||
At December 31, 2014 and September 30, 2014, 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 life of the contract; (iii) contracts valued using historical spot price volatility assumptions; (iv) valuations using indicative broker quotes for inactive market locations and (v) non-publicly traded stock warrants. | ||||||||||||
The following tables set forth financial instruments recorded at fair value as of December 31, 2014 and September 30, 2014, respectively. A financial instrument's classification within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy. | ||||||||||||
WGL Holdings, Inc. | ||||||||||||
Fair Value Measurements Under the Fair Value Hierarchy | ||||||||||||
(In millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||
At December 31, 2014 | ||||||||||||
Assets | ||||||||||||
Natural gas related derivatives | $ | - | $ | 82 | $ | 40.6 | $ | 122.6 | ||||
Electricity related derivatives | - | 2.6 | 18.3 | 20.9 | ||||||||
Total Assets | $ | - | $ | 84.6 | $ | 58.9 | $ | 143.5 | ||||
Liabilities | ||||||||||||
Natural gas related derivatives | $ | - | $ | -60.3 | $ | -293.2 | $ | -353.5 | ||||
Electricity related derivatives | - | -4 | -29.8 | -33.8 | ||||||||
Total Liabilities | $ | - | $ | -64.3 | $ | -323 | $ | -387.3 | ||||
At September 30, 2014 | ||||||||||||
Assets | ||||||||||||
Natural gas related derivatives | $ | - | $ | 22.7 | $ | 33.7 | $ | 56.4 | ||||
Electricity related derivatives | - | 0.3 | 15.9 | 16.2 | ||||||||
Total Assets | $ | - | $ | 23 | $ | 49.6 | $ | 72.6 | ||||
Liabilities | ||||||||||||
Natural gas related derivatives | $ | - | $ | -39.8 | $ | -328.4 | $ | -368.2 | ||||
Electricity related derivatives | - | -0.1 | -20.9 | -21 | ||||||||
Interest rate derivatives | - | -1.7 | - | -1.7 | ||||||||
Total Liabilities | $ | - | $ | -41.6 | $ | -349.3 | $ | -390.9 | ||||
Washington Gas Light Company | ||||||||||||
Fair Value Measurements Under the Fair Value Hierarchy | ||||||||||||
(In millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||
At December 31, 2014 | ||||||||||||
Assets | ||||||||||||
Natural gas related derivatives | $ | - | $ | 35.5 | $ | 11.4 | $ | 46.9 | ||||
Total Assets | $ | - | $ | 35.5 | $ | 11.4 | $ | 46.9 | ||||
Liabilities | ||||||||||||
Natural gas related derivatives | $ | - | $ | -25 | $ | -246.2 | $ | -271.2 | ||||
Total Liabilities | $ | - | $ | -25 | $ | -246.2 | $ | -271.2 | ||||
At September 30, 2014 | ||||||||||||
Assets | ||||||||||||
Natural gas related derivatives | $ | - | $ | 13.5 | $ | 12.7 | $ | 26.2 | ||||
Total Assets | $ | - | $ | 13.5 | $ | 12.7 | $ | 26.2 | ||||
Liabilities | ||||||||||||
Natural gas related derivatives | $ | - | $ | -25.1 | $ | -283.3 | $ | -308.4 | ||||
Total Liabilities | $ | - | $ | -25.1 | $ | -283.3 | $ | -308.4 | ||||
The following table includes quantitative information about the significant unobservable inputs used in the fair value measurement of our Level 3 financial instruments and the respective fair values of the net derivative asset and liability positions, by contract type, as of December 31, 2014 and September 30, 2014. | ||||||||||||
Quantitative Information about Level 3 Fair Value Measurements | ||||||||||||
Net Fair Value December 31, 2014 | Valuation Techniques | Unobservable Inputs | Range | |||||||||
WGL Holdings, Inc. | (In millions) | |||||||||||
Natural gas related derivatives | ($252.60) | Discounted Cash Flow | Natural Gas Basis Price (per dekatherm) | ($1.729) - | $3.62 | |||||||
Option Model | Natural Gas Basis Price (per dekatherm) | ($1.000) - | $2.87 | |||||||||
Annualized Volatility of Spot Market Natural Gas | 30.5% - | 589.60% | ||||||||||
Electricity related derivatives | ($11.50) | Discounted Cash Flow | Electricity Congestion Price (per megawatt hour) | ($3.103) - | $71.05 | |||||||
Washington Gas Light Company | ||||||||||||
Natural gas related derivatives | ($234.80) | Discounted Cash Flow | Natural Gas Basis Price (per dekatherm) | ($1.729) - | $3.10 | |||||||
Net Fair Value September 30, 2014 | ||||||||||||
WGL Holdings, Inc. | ||||||||||||
Natural gas related derivatives | ($294.70) | Discounted Cash Flow | Natural Gas Basis Price (per dekatherm) | ($2.101) - | $6.15 | |||||||
Option Model | Natural Gas Basis Price (per dekatherm) | ($1.675) - | $6.15 | |||||||||
Annualized Volatility of Spot Market Natural Gas | 30.9% - | 589.60% | ||||||||||
Electricity related derivatives | ($5.00) | Discounted Cash Flow | Electricity Congestion Price (per megawatt hour) | ($2.85) - | $90.95 | |||||||
Washington Gas Light Company | ||||||||||||
Natural gas related derivatives | ($270.60) | Discounted Cash Flow | Natural Gas Basis Price (per dekatherm) | ($2.101) - | $6.15 | |||||||
The following tables are a summary of the changes in the fair value of our derivative instruments that are measured at net fair value on a recurring basis in accordance with ASC Topic 820 using significant Level 3 inputs during the three months ended December 31, 2014 and 2013, respectively. | ||||||||||||
WGL Holdings, Inc. Reconciliation of Fair Value Measurements Using Significant Level 3 Inputs | ||||||||||||
(In millions) | Natural Gas Related Derivatives | Electricity Related Derivatives | Warrants | Total | ||||||||
Three Months Ended December 31, 2014 | ||||||||||||
Balance at October 1, 2014 | $ | -294.7 | $ | -5 | $ | - | $ | -299.7 | ||||
Realized and unrealized gains (losses) | ||||||||||||
Recorded to income | 20.3 | -10.9 | - | 9.4 | ||||||||
Recorded to regulatory assets - gas costs | 13.6 | - | - | 13.6 | ||||||||
Transfers out of Level 3 | -1.7 | - | - | -1.7 | ||||||||
Purchases | - | 3.2 | - | 3.2 | ||||||||
Settlements | 9.9 | 1.2 | - | 11.1 | ||||||||
Balance at December 31, 2014 | $ | -252.6 | $ | -11.5 | $ | - | $ | -264.1 | ||||
Three Months Ended December 31, 2013 | ||||||||||||
Balance at October 1, 2013 | $ | -155.2 | $ | 2.4 | $ | 1.1 | $ | -151.7 | ||||
Realized and unrealized gains (losses) | ||||||||||||
Recorded to income | -46.7 | -7.9 | 0.1 | -54.5 | ||||||||
Recorded to regulatory assets - gas costs | -72 | - | - | -72 | ||||||||
Purchases | - | 1.4 | - | 1.4 | ||||||||
Settlements | 9.4 | 2.4 | - | 11.8 | ||||||||
Balance at December 31, 2013 | $ | -264.5 | $ | -1.7 | $ | 1.2 | $ | -265 | ||||
Washington Gas Light Company Reconciliation of Fair Value Measurements Using Significant Level 3 Inputs | ||||||||||||
(In millions) | Natural Gas Related Derivatives | |||||||||||
Three Months Ended December 31, 2014 | ||||||||||||
Balance at October 1, 2014 | $ | -270.6 | ||||||||||
Realized and unrealized gains (losses) | ||||||||||||
Recorded to income | 14.7 | |||||||||||
Recorded to regulatory assets - gas costs | 13.6 | |||||||||||
Transfers out of Level 3 | -1.7 | |||||||||||
Settlements | 9.2 | |||||||||||
Balance at December 31, 2014 | $ | -234.8 | ||||||||||
Three Months Ended December 31, 2013 | ||||||||||||
Balance at October 1, 2013 | $ | -133.6 | ||||||||||
Realized and unrealized gains (losses) | ||||||||||||
Recorded to income | -23.4 | |||||||||||
Recorded to regulatory assets - gas costs | -72 | |||||||||||
Settlements | 9 | |||||||||||
Balance at December 31, 2013 | $ | -220 | ||||||||||
Transfers between different levels of the fair value hierarchy may occur based on the level of observable inputs used to value the instruments from period to period. It is our policy to show both transfers into and out of the different levels of the fair value hierarchy at the fair value as of the beginning of the reporting period. Transfers out of Level 3 for the three months ended December 31, 2014 were due to an increase in observable inputs. There were no transfers in or out of Level 3 for the three months ended December 31, 2013. | ||||||||||||
The table below sets forth the line items on the statements of income to which amounts are recorded for the three months ended December 31, 2014 and 2013, respectively, related to fair value measurements using significant Level 3 inputs. | ||||||||||||
WGL Holdings, Inc. Realized and Unrealized Gains (Losses) Recorded to Income for Level 3 Measurements | ||||||||||||
Three Months Ended December 31, 2014 | ||||||||||||
(In millions) | Natural Gas Related Derivatives | Electricity Related Derivatives | Warrants | Total | ||||||||
Operating revenues—non-utility | $ | 10.5 | $ | 20.8 | $ | - | $ | 31.3 | ||||
Utility cost of gas | 14.7 | - | - | 14.7 | ||||||||
Non-utility cost of energy-related sales | -4.9 | -31.7 | - | -36.6 | ||||||||
Total | $ | 20.3 | $ | -10.9 | $ | - | $ | 9.4 | ||||
Three Months Ended December 31, 2013 | ||||||||||||
(In millions) | Natural Gas Related Derivatives | Electricity Related Derivatives | Warrants | Total | ||||||||
Operating revenues—non-utility | $ | -25.8 | $ | -10 | $ | - | $ | -35.8 | ||||
Utility cost of gas | -23.4 | - | - | -23.4 | ||||||||
Other income-net | - | - | 0.1 | 0.1 | ||||||||
Non-utility cost of energy-related sales | 2.5 | 2.1 | - | 4.6 | ||||||||
Total | $ | -46.7 | $ | -7.9 | $ | 0.1 | $ | -54.5 | ||||
Washington Gas Light Company Realized and Unrealized Gains (Losses) Recorded to Income for Level 3 Measurements | ||||||||||||
Three Months Ended December 31, 2014 | ||||||||||||
(In millions) | Natural Gas Related Derivatives | |||||||||||
Utility cost of gas | $ | 14.7 | ||||||||||
Total | $ | 14.7 | ||||||||||
Three Months Ended December 31, 2013 | ||||||||||||
(In millions) | Natural Gas Related Derivatives | |||||||||||
Utility cost of gas | $ | -23.4 | ||||||||||
Operation and maintenance expense | - | |||||||||||
Total | $ | -23.4 | ||||||||||
Unrealized gains (losses) attributable to derivative assets and liabilities measured using significant Level 3 inputs were recorded as follows, for the three months ended December 31, 2014 and 2013, respectively. | ||||||||||||
WGL Holdings, Inc. Unrealized Gains (Losses) Recorded for Level 3 Measurements | ||||||||||||
Three Months Ended December 31, 2014 | ||||||||||||
(In millions) | Natural Gas Related Derivatives | Electricity Related Derivatives | Warrants | Total | ||||||||
Recorded to income | ||||||||||||
Operating revenues—non-utility | $ | 11.9 | $ | 20.8 | $ | - | $ | 32.7 | ||||
Utility cost of gas | 14.8 | - | - | 14.8 | ||||||||
Non-utility cost of energy-related sales | -5.5 | -27.1 | - | -32.6 | ||||||||
Recorded to regulatory assets—gas costs | 18.5 | - | - | 18.5 | ||||||||
Total | $ | 39.7 | $ | -6.3 | $ | - | $ | 33.4 | ||||
Three Months Ended December 31, 2013 | ||||||||||||
(In millions) | Natural Gas Related Derivatives | Electricity Related Derivatives | Warrants | Total | ||||||||
Recorded to income | ||||||||||||
Operating revenues—non-utility | $ | -25.2 | $ | -5 | $ | - | $ | -30.2 | ||||
Utility cost of gas | -22.9 | - | - | -22.9 | ||||||||
Non-utility cost of energy-related sales | 2.3 | 1 | - | 3.3 | ||||||||
Other income-net | - | - | 0.1 | 0.1 | ||||||||
Operation and maintenance expense | - | - | - | - | ||||||||
Recorded to regulatory assets—gas costs | -71.1 | - | - | -71.1 | ||||||||
Total | $ | -116.9 | $ | -4 | $ | 0.1 | $ | -120.8 | ||||
Washington Gas Light Company Unrealized Gains (Losses) Recorded for Level 3 Measurements | ||||||||||||
Three Months Ended December 31, 2014 | ||||||||||||
(In millions) | Natural Gas Related Derivatives | |||||||||||
Recorded to income | ||||||||||||
Utility cost of gas | $ | 14.8 | ||||||||||
Recorded to regulatory assets—gas costs | 18.5 | |||||||||||
Total | $ | 33.3 | ||||||||||
Three Months Ended December 31, 2013 | ||||||||||||
(In millions) | Natural Gas Related Derivatives | |||||||||||
Recorded to income | ||||||||||||
Utility cost of gas | $ | -22.9 | ||||||||||
Operation and maintenance expense | - | |||||||||||
Recorded to regulatory assets—gas costs | -71.1 | |||||||||||
Total | $ | -94 | ||||||||||
The following table presents the carrying amounts and estimated fair values of our financial instruments at December 31, 2014 and September 30, 2014. | ||||||||||||
WGL Holdings, Inc. Fair Value of Financial Instruments | ||||||||||||
31-Dec-14 | 30-Sep-14 | |||||||||||
(In millions) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||
Money market funds(a) | $ | 11.9 | $ | 11.9 | $ | 9.7 | $ | 9.7 | ||||
Other short-term investments(a) | $ | 0.4 | $ | 0.4 | $ | - | $ | - | ||||
Commercial paper (b) | $ | 350 | $ | 350 | $ | 453.5 | $ | 453.5 | ||||
Long-term debt(c) | $ | 975.6 | $ | 1,116.70 | $ | 679.2 | $ | 809.3 | ||||
Washington Gas Light Company Fair Value of Financial Instruments | ||||||||||||
31-Dec-14 | 30-Sep-14 | |||||||||||
(In millions) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||
Money market funds(a) | $ | 4.6 | $ | 4.6 | $ | 4.3 | $ | 4.3 | ||||
Other short-term investments(a) | $ | 0.4 | $ | 0.4 | $ | - | $ | - | ||||
Commercial paper (b) | $ | 138 | $ | 138 | $ | 89 | $ | 89 | ||||
Long-term debt(c) | $ | 727.2 | $ | 870.3 | $ | 679.2 | $ | 809.3 | ||||
(a)Balance is located in cash and cash equivalents in the accompanying balance sheets. These amounts may be offset by outstanding checks. | ||||||||||||
(b)Balance is located in notes payable in the accompanying balance sheets. | ||||||||||||
(c)Less current maturities and unamortized discounts. | ||||||||||||
Our money market funds are Level 1 valuations and their carrying amount approximates fair value. Other short-term investments are primarily overnight investment accounts; therefore, their carrying amount approximates fair value based on Level 2 inputs. The maturity of our commercial paper outstanding at both December 31, 2014 and September 30, 2014 is under 30 days. Due to the short term nature of these notes, the carrying cost of our commercial paper approximates fair value using Level 2 inputs. Neither WGL's nor Washington Gas' long-term debt is actively traded. The fair value of long-term debt was estimated based on the quoted market prices of the U.S. Treasury issues having a similar term to maturity, adjusted for WGL's and/or Washington Gas' credit quality. Our long-term debt fair value measurement is classified as Level 3. | ||||||||||||
Non Recurring Basis | ||||||||||||
During the three months ended December 31, 2014, Washington Gas Resources recorded an impairment charge of its investment in ASDHI to its fair value using the income approach. The amount of the impairment was equivalent to the amount of the carrying value of $5.6 million and was due to management's assumption of the current valuation and expected return from the investment. The fair value of this investment was a Level 3 measurement. | ||||||||||||
Operating_Segment_Reporting
Operating Segment Reporting | 3 Months Ended | |||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||||||
Operating Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||
Operating Segment Reporting | NOTE 10. OPERATING SEGMENT REPORTING | |||||||||||||||||||||||||||||||||||
We have four reportable operating segments: regulated utility, retail energy-marketing, commercial energy systems and midstream energy services. The division of these segments into separate revenue generating components is based upon regulation, products and services. Our chief operating decision maker is our Chief Executive Officer. During the first quarter of 2015, our chief operating decision maker began evaluating segment performance based on Earnings Before Interest and Taxes (EBIT). EBIT is defined as earnings before interest and taxes from continuing operations. Items we do not include in EBIT are interest expense, dividends on Washington Gas preferred stock, and income taxes. EBIT includes transactions between reportable segments. Additionally, we also evaluate our operating segments based on other relevant factors, such as penetration into their respective markets and return on equity. | ||||||||||||||||||||||||||||||||||||
Our four segments are summarized below. | ||||||||||||||||||||||||||||||||||||
Regulated Utility – The regulated utility segment is our core business. It consists of Washington Gas and Hampshire. Washington Gas provides regulated gas distribution services (including the sale and delivery of natural gas) to customers and natural gas transportation services to an unaffiliated natural gas distribution company in West Virginia under a Federal Energy Regulatory Commission (FERC) approved interstate transportation service operating agreement. Hampshire provides regulated interstate natural gas storage services to Washington Gas under a FERC approved interstate storage service tariff. | ||||||||||||||||||||||||||||||||||||
Retail Energy-Marketing – The retail energy-marketing segment consists of WGL Energy Services, which sells natural gas and electricity directly to retail customers in competition with regulated utilities and unregulated gas and electricity marketers. | ||||||||||||||||||||||||||||||||||||
Commercial Energy Systems – The commercial energy systems segment consists of WGL Energy Systems which provides clean and energy efficient solutions including commercial solar, energy efficiency and combined heat and power projects to government and commercial clients. In addition, this segment comprises the operations of WGSW, a holding company formed to invest in alternative energy assets. | ||||||||||||||||||||||||||||||||||||
Midstream Energy Services – The midstream energy services segment consists of WGL Midstream, which engages in acquiring, investing in, managing and optimizing natural gas storage and transportation assets. | ||||||||||||||||||||||||||||||||||||
Activities and transactions that are not significant enough on a stand-alone basis to warrant treatment as an operating segment, and that do not fit into one of our four operating segments, are aggregated as “Other Activities” in the Operating Segment Financial Information presented below. Administrative and business development activity costs associated with WGL and Washington Gas Resources are included in “Other Activities”. | ||||||||||||||||||||||||||||||||||||
The following tables present operating segment information for the three months ended December 31, 2014 and 2013. Prior year segment information has been recast to conform to the current year presentation. | ||||||||||||||||||||||||||||||||||||
Operating Segment Financial Information | ||||||||||||||||||||||||||||||||||||
(In thousands) | Operating Revenues(a) | Depreciation & Amortization | Equity in Earnings of Unconsolidated Affiliates | EBIT | Total Assets | Capital Expenditures | Equity Method Investments | |||||||||||||||||||||||||||||
Three Months Ended December 31, 2014 | ||||||||||||||||||||||||||||||||||||
Regulated utility | $ | 387,193 | $ | 26,952 | $ | - | $ | 114,627 | $ | 4,200,780 | $ | 89,603 | $ | - | ||||||||||||||||||||||
Retail energy-marketing | 330,489 | 167 | - | -15,895 | 436,204 | 34 | - | |||||||||||||||||||||||||||||
Commercial energy systems | 9,539 | 2,235 | 577 | 259 | 544,682 | 43,317 | 66,100 | |||||||||||||||||||||||||||||
Midstream energy services | 28,092 | 31 | 536 | 26,771 | 249,789 | - | 36,167 | |||||||||||||||||||||||||||||
Other activities | - | - | 31 | -7,099 | 409,123 | - | 48 | |||||||||||||||||||||||||||||
Eliminations(b) | -6,076 | -25 | - | -32 | -692,486 | - | - | |||||||||||||||||||||||||||||
Total consolidated | $ | 749,237 | $ | 29,360 | $ | 1,144 | $ | 118,631 | $ | 5,148,092 | $ | 132,954 | $ | 102,315 | ||||||||||||||||||||||
Three Months Ended December 31, 2013 | ||||||||||||||||||||||||||||||||||||
Regulated utility | $ | 390,415 | $ | 25,369 | $ | - | $ | 65,453 | $ | 3,828,709 | $ | 55,092 | $ | - | ||||||||||||||||||||||
Retail energy-marketing | 322,938 | 174 | - | 5,290 | 418,633 | 75 | - | |||||||||||||||||||||||||||||
Commercial energy systems | 4,717 | 1,093 | 284 | -596 | 380,241 | 3,138 | 66,526 | |||||||||||||||||||||||||||||
Midstream energy services | -33,173 | 31 | 206 | -34,209 | 171,420 | - | 10,813 | |||||||||||||||||||||||||||||
Other activities | - | - | - | -2,661 | 299,769 | - | 413 | |||||||||||||||||||||||||||||
Eliminations(b) | -4,600 | -77 | - | 144 | -467,246 | - | - | |||||||||||||||||||||||||||||
Total consolidated | $ | 680,297 | $ | 26,590 | $ | 490 | $ | 33,421 | $ | 4,631,526 | $ | 58,305 | $ | 77,752 | ||||||||||||||||||||||
(a) | Operating revenues are reported gross of revenue taxes. Revenue taxes of both the regulated utility and the retail energy-marketing segments include gross receipt taxes. Revenue taxes of the regulated utility segment also include PSC fees, franchise fees and energy taxes. Operating revenue amounts in the "Eliminations" row represent total intersegment revenues associated with sales from the regulated utility segment to the retail energy-marketing segment. Midstream Energy Services' cost of energy related sales is netted with its gross revenues. | |||||||||||||||||||||||||||||||||||
(b) | Intersegment eliminations include a timing difference between Commercial Energy Systems’ recognition of revenue for the sale of Solar Renewable Energy Credits (SRECs) to Retail Energy-Marketing and Retail Energy-Marketing’s recognition of the associated expense. Retail Energy-Marketing has recorded a portion of the SREC’s purchased as inventory to be used in future periods at which time they will be expensed. | |||||||||||||||||||||||||||||||||||
The following table is a reconciliation from EBIT to net income applicable to common stock. | ||||||||||||||||||||||||||||||||||||
Three Months Ended December 31, | ||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||
Total consolidated EBIT | $ | 118,631 | $ | 33,421 | ||||||||||||||||||||||||||||||||
Interest expense | 12,310 | 8,992 | ||||||||||||||||||||||||||||||||||
Income before income taxes | 106,321 | 24,429 | ||||||||||||||||||||||||||||||||||
Income tax expense | 42,103 | 5,470 | ||||||||||||||||||||||||||||||||||
Net income | 64,218 | 18,959 | ||||||||||||||||||||||||||||||||||
Dividends on Washington Gas Light Company preferred stock | 330 | 330 | ||||||||||||||||||||||||||||||||||
Net income applicable to common stock | $ | 63,888 | $ | 18,629 | ||||||||||||||||||||||||||||||||
Other_Investments
Other Investments | 3 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Other Investments [Abstract] | |||||||
InvestmentTextBlock | NOTE 11. OTHER INVESTMENTS | ||||||
When determining how to account for our interests in other legal entities, WGL first evaluates if we are required to apply the variable interest entity (VIE) model to the entity, otherwise the entity is evaluated under the voting interest model. | |||||||
Under the VIE model, we have a controlling financial interest in a VIE (i.e. are the primary beneficiary) when we have current or potential rights that give us the power to direct the activities of a VIE that most significantly impact the VIE's economic performance combined with a variable interest that gives us the right to receive potentially significant benefits or the obligation to absorb potentially significant losses. When changes occur to the design of an entity we reconsider whether it is subject to the VIE model. We continuously evaluate whether we have a controlling financial interest in a VIE. | |||||||
Under the voting interest model, we generally have a controlling financial interest in an entity where we currently hold, directly or indirectly, more than 50% of the voting rights or where we exercise control through substantive participating rights. However, we consider substantive rights held by other partners in determining if we hold a controlling financial interest, and in some cases, despite owning more than 50% of the common stock of an investee, an evaluation of our rights results in the determination that we do not have a controlling financial interest. We reevaluate whether we have a controlling financial interest in these entities when our voting or substantive participating rights change. | |||||||
Unconsolidated affiliates are unconsolidated VIEs and other entities evaluated under the voting interest method in which we do not have a controlling financial interest, but over which we have varying degrees of influence. Where we have significant influence, the affiliates are accounted for as equity method investments. Where we do not have significant influence, the affiliates are accounted for under the cost method. Investments in, and advances to, affiliated companies are presented on a one-line basis in the caption “Investments in unconsolidated affiliates” on our Consolidated Balance Sheet. | |||||||
WGL uses the Hypothetical Liquidation at Book Value (HLBV) methodology for certain equity method investments when the capital structure of the equity investment results in different liquidation rights and priorities than what is reflected by the underlying percentage ownership interests as defined by an equity investment agreement. For investments accounted for under the HLBV method, simply applying the percentage ownership interest to GAAP net income in order to determine earnings or losses does not accurately represent the income allocation and cash flow distributions that will ultimately be received by the investors. The equity investment agreements for ASD Solar, LP (ASD) and Meade Pipeline Co LLC (Meade) both have liquidation rights and priorities that are sufficiently different from the ownership percentages that the HLBV method was deemed appropriate. The calculation may vary in its complexity depending on the capital structure and the tax considerations for the investments. | |||||||
WGL applies HLBV using a balance sheet approach. A calculation is prepared at each balance sheet date to determine the amount that WGL would receive if an equity investment entity were to liquidate all of its assets (as valued in accordance with GAAP) and distribute that cash to the investors based on the contractually defined liquidation priorities. The difference between the calculated liquidation distribution amounts at the beginning and the end of the reporting period is WGL's share of the earnings or losses from the equity investment for the period. | |||||||
Variable Interest Entities | |||||||
WGL has a variable interest in five investments that qualify as VIEs: | |||||||
Meade, | |||||||
SunEdison, | |||||||
Nextility, | |||||||
ASD and | |||||||
Crab Run. | |||||||
WGL and its subsidiaries are not the primary beneficiary for any of the above VIEs, therefore we have not consolidated any of the VIE entities. At December 31, 2014, the nature of WGL's involvement with these investments lacks the characteristics of a controlling financial interest. WGL does not have control over any of the VIEs' activities that are economically significant to the VIEs. In addition, WGL does not have the obligation to absorb expected losses or the right to receive expected gains that could be significant to the VIE. | |||||||
Meade | |||||||
In 2014, WGL through its subsidiary, WGL Midstream, entered into a limited liability company agreement and formed Meade, a Delaware limited liability company with COG Holdings LLC, Vega Midstream MPC LLC and River Road Interests LLC. Meade was formed to partner with Transcontinental Gas Pipeline Company, LLC (Williams) to invest in a regulated pipeline project called Central Penn Pipeline (Central Penn). The Central Penn will be an approximately 177-mile pipeline originating in Susquehanna County, Pennsylvania and extending to Lancaster County, Pennsylvania that will have the capacity to transport and deliver up to approximately 1.7 million dekatherms per day of natural gas. | |||||||
WGL Midstream plans to invest an estimated $410.0 million for a 55% interest in Meade. WGL Midstream joins COG Holdings LLC (20% share), Vega Midstream MPC LLC (15% share) and River Road Interests LLC (10% share) in Meade. Meade is accounted for under the HLBV equity method of accounting, and any profits and losses are included in “Equity in earnings of unconsolidated affiliates” in the accompanying Consolidated Statement of Income and are added to or subtracted from the carrying amount of WGL's investment balance. WGL Midstream held a $10.4 million equity method investment in Meade at December 31, 2014. | |||||||
Our maximum financial exposure includes contributions and guarantees on behalf of WGL Midstream. Our maximum exposure to loss at December 31, 2014 was $59.4 million, which represents the minimum funding requirements owed to Williams under the Construction and Ownership Agreement should Meade terminate its agreement with Williams early. | |||||||
SunEdison/Nextility | |||||||
WGSW is party to three agreements to fund residential and commercial retail solar energy installations with three separate, privately held companies. WGSW has a master purchase agreement and master lease agreement with SunEdison, Inc. (SunEdison), and Nextility, Inc. (Nextility) for sale/leaseback arrangements for residential and commercial solar systems. | |||||||
Our agreements with SunEdison and Nextility are accounted for as direct financing leases. WGSW records associated interest in the financing leases in "Other income (expenses)-net" line in the accompanying Consolidated Statement of Income. WGSW held a $19.3 million and $19.9 million combined investment in direct financing leases at December 31, 2014 and September 30, 2014, respectively, of which $1.6 million and $1.7 million are current receivables recorded in "Accounts Receivable" in the accompanying Consolidated Balance Sheets at December 31, 2014 and September 30, 2014, respectively. | |||||||
Minimum future lease payments receivable under direct financing leases over the next five fiscal years and thereafter are as follows: | |||||||
Minimum Payments Receivable for Direct Financing Leases | |||||||
(In millions) | |||||||
2015 | $ | 1.6 | |||||
2016 | 2 | ||||||
2017 | 1.9 | ||||||
2018 | 1.8 | ||||||
2019 | 1.7 | ||||||
Thereafter | 12.4 | ||||||
Total | $ | 21.4 | |||||
Minimum payments receivable exclude $5.1 million of residual values and $2.9 million in tax credits. Associated with these investments, WGSW holds $10.1 million of unearned income on its balance sheet. The initial direct costs (incurred in FY 2012) associated with these investments was $0.7 million. | |||||||
Our maximum financial exposure from solar agreements is limited to its lease payment receivables and investment contributions made to these companies. All additional future committed contributions are contingent on the projects meeting required criteria. Our exposure is offset by the owned physical assets received as part of the transaction and the quick economic return for the investment through the investment tax credit/treasury grant proceeds and accelerated depreciation. | |||||||
ASD | |||||||
In addition to SunEdison/Nextility, WGSW is also a limited partner in ASD, a partnership formed to own and operate a portfolio of residential solar projects, primarily rooftop photovoltaic power generation systems. As a limited partner, WGSW provided funding to the partnership but is excluded from involvement in the partnership's operations. In January 2014, the funding commitment period expired for the partnership. WGSW's maximum financial exposure includes contributions made to the partnership. | |||||||
Our investment in ASD is accounted for under the HLBV equity method of accounting; any profits and losses are included in “Equity in earnings of unconsolidated affiliates” in the accompanying Consolidated Statement of Income and are added to or subtracted from the carrying amount of WGSW's investment balance. WGSW held a $66.1 million equity method investment in ASD at December 31, 2014. | |||||||
ASD is consolidated by the general partner, Solar Direct LLC. Solar Direct LLC is a wholly owned subsidiary of American Solar Direct Inc. (ASDI). At December 31, 2014, the carrying amount of WGSW's investment in ASD exceeded the amount of the underlying equity in net assets by $35.9 million due to WGSW recording additions to its investment in ASD's net assets at fair value of contributions in accordance with GAAP. This basis difference is being amortized over the life of the assets. | |||||||
Crab Run | |||||||
WGL owns all of the shares of common stock of Crab Run Gas Company. Crab Run Gas Company is an exploration and production company who is the limited partner in the Western/Crab Run Limited Partnership (Crab Run). The partnership was formed to manage oil and gas properties and perform oil and gas leasing, marketing and production activities. | |||||||
Crab Run is accounted for under the equity method of accounting; any profits and losses are included in “Equity in earnings of unconsolidated affiliates” in the accompanying Consolidated Statement of Income and are added to or subtracted from the carrying amount of WGL's investment balance. WGL held less than $0.1 million of equity investment in Crab Run at December 31, 2014. | |||||||
Non-VIE Investments | |||||||
ASDHI | |||||||
Washington Gas Resources held a $5.6 million investment in American Solar Direct Holdings Inc. (ASDHI) at September 30, 2014 consisting of warrants and preferred stock. During the three months ended December 31, 2014, Washington Gas Resources impaired its entire investment in ASDHI by its carrying value of $5.6 million due to management's assumption of the current valuation and expected return from the investment. | |||||||
Constitution | |||||||
In 2013, WGL Midstream invested in Constitution Pipeline Company, LLC (Constitution). WGL Midstream will invest an estimated $79.0 million in the project for a 10% share in the pipeline venture. WGL Midstream joins Williams Partners L.P. (41% share), Cabot Oil and Gas Corporation (25% share) and Piedmont Natural Gas (24% share) in the project. This natural gas pipeline venture will transport natural gas per day from the Marcellus region in northern Pennsylvania to major northeastern markets. At December 31, 2014, WGL Midstream had invested $24.0 million in Constitution. Constitution is accounted for under the equity method of accounting; any profits and losses are included in “Equity in earnings of unconsolidated affiliates” in the accompanying Consolidated Statement of Income and are added to or subtracted from the carrying amount of WGL's investment balance. The equity method is considered appropriate because Constitution is an LLC with specific ownership accounts and ownership between five and fifty percent resulting in WGL Midstream maintaining a more than minor influence over the partnership operating and financing policies. | |||||||
The balance sheet location of the investments discussed in this footnote at December 31, 2014 and September 30, 2014 are as follows: | |||||||
WGL Holdings, Inc. | |||||||
Balance Sheet Location of Other Investments | |||||||
As of December 31, 2014 (in millions) | VIEs | Non-VIEs | Total | ||||
Assets | |||||||
Investments in unconsolidated affiliates | $ | 76.5 | $ | 25.8 | $ | 102.3 | |
Investments in direct financing leases, capital leases | 17.7 | - | 17.7 | ||||
Accounts Receivable | 1.6 | - | 1.6 | ||||
Total assets | $ | 95.8 | $ | 25.8 | $ | 121.6 | |
As of September 30, 2014 (in millions) | |||||||
Assets | |||||||
Investments in unconsolidated affiliates | $ | 72.6 | $ | 27.9 | $ | 100.5 | |
Investments in direct financing leases, capital leases | 18.2 | - | 18.2 | ||||
Accounts receivable | 1.7 | - | 1.7 | ||||
Total assets | $ | 92.5 | $ | 27.9 | $ | 120.4 | |
The income statement location of the investments discussed in this footnote for the three months ended December 31, 2014 and 2013 are as follows: | |||||||
WGL Holdings, Inc. | |||||||
Income Statement Location of Other Investments | |||||||
Three Months Ended December 31, 2014 (in millions) | VIEs | Non-VIEs | Total | ||||
Equity in earnings of unconsolidated affiliates | $ | 0.6 | $ | 0.5 | $ | 1.1 | |
Depreciation and amortization | 0.1 | - | 0.1 | ||||
Other income (expenses) - net | 0.6 | -5.6 | -5 | ||||
Net income (loss) | $ | 1.1 | $ | -5.1 | $ | -4 | |
Three Months Ended December 31, 2013 (in millions) | |||||||
Equity in earnings of unconsolidated affiliates | $ | 0.3 | $ | 0.2 | $ | 0.5 | |
Depreciation and amortization | 0.1 | - | 0.1 | ||||
Other income - net | 0.9 | - | 0.9 | ||||
Net income | $ | 1.1 | $ | 0.2 | $ | 1.3 |
Related_Party_Transactions
Related Party Transactions | 3 Months Ended | |||||
Dec. 31, 2014 | ||||||
Related Party Transactions [Abstract] | ||||||
Related Party Transactions | NOTE 12. RELATED PARTY TRANSACTIONS | |||||
WGL and its subsidiaries engage in transactions during the ordinary course of business. Inter-company transactions and balances have been eliminated from the consolidated financial statements of WGL, except as described below. Washington Gas provides accounting, treasury, legal and other administrative and general support to affiliates, and files consolidated tax returns that include affiliated taxable transactions. Washington Gas bills its affiliates in accordance with regulatory requirements for the actual cost of providing these services, which approximates their market value. To the extent such billings are not yet paid, 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. | ||||||
In connection with billing for unregulated third party marketers and with other miscellaneous billing processes, Washington Gas collects cash on behalf of affiliates and transfers the cash in a reasonable time period. Cash collected by Washington Gas on behalf of its affiliates but not yet transferred is recorded in “Payables to associated companies” on Washington Gas' balance sheets. The following table presents the receivables and payables from associated companies as of December 31, 2014 and September 30, 2014. | ||||||
Washington Gas Light Company Receivables / Payables from Associated Companies | ||||||
(In millions) | 31-Dec-14 | 30-Sep-14 | ||||
Receivables from Associated Companies | $ | 3.6 | $ | 4.8 | ||
Payables to Associated Companies | $ | 67.7 | $ | 54.7 | ||
Washington Gas provides gas balancing services related to storage, injections, withdrawals and deliveries to all energy marketers participating in the sale of natural gas on an unregulated basis through the customer choice programs that operate in its service territory. These balancing services include the sale of natural gas supply commodities related to various peaking arrangements contractually supplied to Washington Gas and then partially allocated and assigned by Washington Gas to the energy marketers, including WGL Energy Services. Washington Gas records revenues for these balancing services pursuant to tariffs approved by the appropriate regulatory bodies. These related party amounts have been eliminated in the consolidated financial statements of WGL. The following table shows the amounts Washington Gas charged WGL Energy Services for balance services. | ||||||
Washington Gas Light Company - Gas Balancing Service Charges | ||||||
Three Months Ended | ||||||
December 31, | ||||||
(In millions) | 2014 | 2013 | ||||
Gas balancing service charge | $ | 5.5 | $ | 3.8 | ||
As a result of these balancing services, an imbalance is created for volumes of natural gas received by Washington Gas that are not equal to the volumes of natural gas delivered to customers of the energy marketers. WGL Energy Services recognized an accounts payable to Washington Gas in the amount of $3.2 million and an accounts receivable from Washington Gas in the amount of $0.02 million at December 31, 2014 and September 30, 2014, respectively, related to an imbalance in gas volumes. Due to regulatory treatment, these payables and receivables are not eliminated in the consolidated financial statements of WGL. Refer to Note 1—Accounting Policies of the Notes to Consolidated Financial Statements of the combined Annual Report on Form 10-K for the fiscal year ended September 30, 2014 for further discussion of these imbalance transactions. | ||||||
Washington Gas participates in a Purchase of Receivables (POR) program as approved by the Maryland Public Service Commission (PSC of MD), whereby it purchases receivables from participating energy marketers at approved discount rates. In addition, WGL Energy Services participates in POR programs with certain Maryland and Pennsylvania utilities, whereby it sells its receivables to various utilities, including Washington Gas, at approved discount rates. The receivables purchased by Washington Gas are included in “Accounts receivable” in the accompanying balance sheet. Any activity between Washington Gas and WGL Energy Services related to the POR program has been eliminated in the accompanying financial statements for WGL. At December 31, 2014 and September 30, 2014, Washington Gas had balances of $19.4 million and $7.7 million, respectively, of purchased receivables from WGL Energy Services. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Commitments and Contingencies [Abstract] | |||||||||||||
Commitments and Contingencies | NOTE 13. COMMITMENTS AND CONTINGENCIES | ||||||||||||
REGULATED UTILITY OPERATIONS | |||||||||||||
The following table summarizes the minimum contractual payments that Washington Gas will make under its pipeline transportation, storage and peaking contracts, as well as minimum contractual payments to purchase natural gas at prices based on market conditions during the next five fiscal years and thereafter. The gas purchase contracts noted below represent commitments to purchase natural gas based on market conditions at the time the natural gas is purchased. | |||||||||||||
Washington Gas Contract Minimums | |||||||||||||
(In millions) | Pipeline Contracts(a) | Gas Purchase Commitments(b) | |||||||||||
Remainder of 2015 | $ | 197.1 | $ | 161.3 | |||||||||
2016 | 218.7 | 393.3 | |||||||||||
2017 | 210.5 | 526.1 | |||||||||||
2018 | 211.3 | 538.6 | |||||||||||
2019 | 202.7 | 541.3 | |||||||||||
Thereafter | 1,172.60 | 6,285.20 | |||||||||||
Total | $ | 2,212.90 | $ | 8,445.80 | |||||||||
(a)Represents minimum payments for natural gas transportation, storage and peaking contracts that have expiration dates through fiscal year 2031. | |||||||||||||
(b)The contracts referenced above are estimated based on market prices at December 31, 2014. | |||||||||||||
REGULATORY CONTINGENCIES | |||||||||||||
Certain legal and administrative proceedings incidental to our business, including regulatory contingencies, involve WGL and/or its subsidiaries. In our opinion, we have recorded an adequate provision for probable losses or refunds to customers for regulatory contingencies related to these proceedings. | |||||||||||||
NON-UTILITY OPERATIONS | |||||||||||||
The following table summarizes the minimum commitments and contractual obligations of WGL Energy Services and WGL Midstream for the next five fiscal years and thereafter. | |||||||||||||
On November 30, 2014, WGL Holdings through its subsidiary, WGL Midstream, entered into a gas sale and purchase, and capacity agreement with GAIL Global (USA) LNG LLC, a subsidiary of GAIL (India) Limited, under which WGL Midstream has agreed to sell and deliver a minimum of 340,000 Dth per day and up to 430,000 Dth per day of natural gas, for a term of 20 years from the in-service date of the export facility. The contract price is based on index pricing, but certain gas sales will occur at a market price per Dth of gas based on the estimate of prices prevailing at designated delivery points. WGL Midstream will make deliveries using transportation capacity released by GAIL through an asset management arrangement. As a result of this agreement, purchase commitments for WGL Midstream have increased as reflected in the table below. | |||||||||||||
Contract Minimums | |||||||||||||
WGL Energy Services | WGL Midstream | ||||||||||||
(In millions) | Gas Purchase Commitments(a) | Pipeline Contracts(b) | Electric Purchase Commitments(c) | Gas Purchase Commitments(d) | Pipeline Contracts(e) | Total | |||||||
Remainder of 2015 | $ | 128.3 | $ | 2.4 | $ | 380 | $ | 29.3 | $ | 13.9 | $ | 553.9 | |
2016 | 74.8 | 0.6 | 337.1 | 190.8 | 19.2 | 622.5 | |||||||
2017 | 21.4 | 0.6 | 105.3 | 310 | 17.7 | 455 | |||||||
2018 | 0.5 | 0.6 | 9.4 | 1,222.10 | 26.4 | 1,259.00 | |||||||
2019 | - | 0.6 | 0.1 | 1,345.60 | 24.6 | 1,370.90 | |||||||
Thereafter | - | 1.3 | - | 23,012.60 | 260.9 | 23,274.80 | |||||||
Total | $ | 225 | $ | 6.1 | $ | 831.9 | $ | 26,110.40 | $ | 362.7 | $ | 27,536.10 | |
(a)Represents fixed price commitments with city gate equivalent deliveries. | |||||||||||||
(b)Represents minimum payments for natural gas transportation and storage contracts that have expiration dates through fiscal year 2025. | |||||||||||||
(c)Represents electric purchase commitments that are based on existing fixed price and fixed volume contracts. Includes $23.8 million of commitments related to renewable energy credits. | |||||||||||||
(d)Includes short-term commitments to purchase fixed volumes of natural gas, as well as long-term gas purchase commitments that contain fixed volume purchase requirements. Cost estimates are based on forward market prices for purchases under these purchase commitments. | |||||||||||||
(e)Represents minimum payments for natural gas transportation and storage contracts that have expiration dates through fiscal year 2044. | |||||||||||||
FINANCIAL GUARANTEES | |||||||||||||
WGL has guaranteed payments primarily for certain purchases of natural gas and electricity on behalf of WGL Energy Services and for certain purchase commitments on behalf of WGL Midstream. At December 31, 2014, these guarantees totaled $227.2 million and $306.3 million for WGL Energy Services and WGL Midstream, respectively. At December 31, 2014, WGL also had guarantees on behalf of other subsidiaries totaling $8.5 million. The amount of such guarantees is periodically adjusted to reflect changes in the level of financial exposure related to these commitments. For all of our financial guarantees, WGL may cancel any or all future obligations upon written notice to the counterparty, but WGL would continue to be responsible for the obligations created under the guarantees prior to the effective date of the cancellation. WGL has also guaranteed payments for certain of our external partners. At December 31, 2014, these guarantees totaled $2.1 million and the fair value of these guarantees was insignificant at December 31, 2014. |
Pension_and_Other_PostRetireme
Pension and Other Post-Retirement Benefit Plans | 3 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Pension and Other Post-Retirement Benefit Plans [Abstract] | |||||||||
Pension and Other Post-Retirement Benefit Plans | NOTE 14. PENSION AND OTHER POST-RETIREMENT BENEFIT PLANS | ||||||||
The following table shows the components of net periodic benefit costs (income) recognized in our financial statements during the three months ended December 31, 2014 and 2013. | |||||||||
Components of Net Periodic Benefit Costs (Income) | |||||||||
Three Months Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Pension | Health and | Pension | Health and | ||||||
(In millions) | Benefits | Life Benefits | Benefits | Life Benefits | |||||
Components of Net Periodic Benefit Costs (Income) | |||||||||
Service cost | $ | 3.9 | $ | 1.7 | $ | 3.5 | $ | 2.1 | |
Interest cost | 9.8 | 3.7 | 10.1 | 5.4 | |||||
Expected return on plan assets | -11.2 | -5.2 | -10.3 | -4.7 | |||||
Amortization of prior service cost (credit) | 0.1 | -3.8 | 0.1 | -1 | |||||
Amortization of actuarial loss | 4.7 | 1.1 | 4.2 | 0.7 | |||||
Net periodic benefit cost | 7.3 | -2.5 | 7.6 | 2.5 | |||||
Amount allocated to construction projects | -1.1 | 0.5 | -1 | -0.4 | |||||
Amount deferred as regulatory asset (liability) - net | 1.8 | -0.1 | 1.8 | 0.1 | |||||
Amount charged (credited) to expense | $ | 8 | $ | -2.1 | $ | 8.4 | $ | 2.2 | |
Amounts included in the line item “Amount deferred as regulatory asset/liability - net,” as shown in the table above, represents the amortization of unrecovered prior costs of the applicable pension benefits or the health and life benefits as approved in the District of Columbia. These balances are being amortized over a five year period. | |||||||||
Changes_in_Accumulated_Other_C
Changes in Accumulated Other Comprehensive Income | 3 Months Ended | |||||
Dec. 31, 2014 | ||||||
Accumulated Other Comprehensive Income (Loss) [Abstract] | ||||||
Changes in Accumulated Other Comprehensive Income by Component | NOTE 15. ACCUMULATED OTHER COMPREHENSIVE INCOME | |||||
The following tables show the changes in accumulated other comprehensive income for WGL and Washington Gas by component for the three months ended December 31, 2014 and 2013. | ||||||
WGL Holdings, Inc. | ||||||
Changes in Accumulated Other Comprehensive Income by Component | ||||||
Three Months Ended December 31, | ||||||
2014 | 2013 | |||||
(In thousands) | ||||||
Beginning Balance | $ | -7,961 | $ | -11,048 | ||
Qualified cash flow hedging instruments(a) | -8,265 | - | ||||
Change in prior service credit (b) | -171 | -35 | ||||
Amortization of actuarial loss (b) | 484 | 364 | ||||
Current-period other comprehensive income (loss) | -7,952 | 329 | ||||
Income tax expense (benefit) related to other comprehensive income | -3,947 | 130 | ||||
Ending Balance | $ | -11,966 | $ | -10,849 | ||
(a) Cash flow hedging instruments represent interest rate swap agreements on debt issuances. Refer to Note 8-Derivative and weather-related instruments for further discussion of the interest rate swap agreements. | ||||||
(b) These accumulated other comprehensive income components are included in the computation of net periodic benefit cost. Refer to Note 14-Pension and other post-retirement benefit plans for additional details. | ||||||
Washington Gas Light Company | ||||||
Changes in Accumulated Other Comprehensive Income by Component | ||||||
Three Months Ended December 31, | ||||||
2014 | 2013 | |||||
(In thousands) | ||||||
Beginning Balance | $ | -6,413 | $ | -11,048 | ||
Change in prior service credit (a) | -171 | -35 | ||||
Amortization of actuarial loss (a) | 484 | 364 | ||||
Current-period other comprehensive income | 313 | 329 | ||||
Income tax expense related to other comprehensive income | 124 | 130 | ||||
Ending Balance | $ | -6,224 | $ | -10,849 | ||
(a) These accumulated other comprehensive income components are included in the computation of net periodic benefit cost. Refer to Note 14-Pension and other post-retirement benefit plans for additional details. |
Accounting_Policies_Policies
Accounting Policies (Policies) | 3 Months Ended |
Dec. 31, 2014 | |
Organization And Significant Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation |
WGL Holdings, Inc. (WGL) is a holding company that owns all of the shares of common stock of Washington Gas Light Company (Washington Gas), a regulated natural gas utility, and all of the shares of common stock of Washington Gas Resources Corporation (Washington Gas Resources), Hampshire Gas Company (Hampshire) and Crab Run Gas Company. Washington Gas Resources owns all of the shares of common stock of four non-utility subsidiaries that include WGL Energy Services, Inc. (WGL Energy Services), WGL Energy Systems, Inc. (WGL Energy Systems), WGL Midstream and WGSW, Inc. (WGSW). Except where the content clearly indicates otherwise, “WGL,” “we,” “us” or “our” refers to the holding company or the consolidated entity of WGL Holdings, Inc. and all of its subsidiaries. Unless otherwise noted, these notes apply equally to WGL and Washington Gas. | |
The condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Therefore, certain financial information and note disclosures accompanying annual financial statements prepared in accordance with generally accepted accounting principles in the United States of America (GAAP) are omitted in this interim report. The interim consolidated financial statements and accompanying notes should be read in conjunction with the combined Annual Report on Form 10-K for WGL and Washington Gas for the fiscal year ended September 30, 2014. Due to the seasonal nature of our businesses, the results of operations for the periods presented in this report are not necessarily indicative of actual results for the full fiscal years ending September 30, 2015 and 2014 of either WGL or Washington Gas. | |
The accompanying unaudited financial statements for WGL and Washington Gas reflect all normal recurring adjustments that are necessary, in our opinion, to present fairly the results of operations in accordance with GAAP. Certain reclassifications have been recast to conform to current year presentation. | |
For a complete description of our accounting policies, refer to Note 1 of the Notes to Consolidated Financial Statements of the combined Annual Report on Form 10-K for WGL and Washington Gas for the fiscal year ended September 30, 2014. | |
Accounting Standards Adopted Current Period | ACCOUNTING STANDARDS ADOPTED IN FISCAL YEAR 2015 |
ASU 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (Topic 740) | |
The standard requires an unrecognized tax benefit, or a portion of an unrecognized tax benefit to be presented in the financial statements as a reduction to a deferred tax asset for net operating loss carryforwards, a similar loss, or a tax credit carryforward. | |
1-Oct-14 | |
As a result of the implementation of this standard, we reduced our deferred tax assets by a portion of our unrecognized tax benefits. The adoption of this standard did not have a material effect on our financial statements. | |
New Accounting Pronouncements | OTHER NEWLY ISSUED ACCOUNTING STANDARDS |
ASU 2014-09, Revenue from Contracts with Customers (Topic 606) | |
The standard establishes a comprehensive revenue recognition model clarifying the method used to determine the timing and requirements for revenue recognition from contracts with customers. The disclosure requirements under the new standard will enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. | |
1-Oct-17 | |
We are in the process of evaluating the impact the adoption of this standard will have on our financial statements. | |
Fair Value Measurement Policy | We measure the fair value of our financial assets and liabilities using a combination of the income and market approach in accordance with ASC Topic 820. These financial assets and liabilities primarily consist of (i) derivatives recorded on our balance sheet under ASC Topic 815 and short-term investments, commercial paper and long-term debt outstanding required to be disclosed at fair value. Under ASC Topic 820, fair value is defined as the exit price, representing the amount that would be received in the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To value our financial instruments, we use market data or assumptions that market participants would use, including assumptions about credit risk (both our own credit risk and the counterparty's credit risk) and the risks inherent in the inputs to valuation. |
We enter into derivative contracts in the futures and over-the-counter (OTC) wholesale and retail markets. These markets are the principal markets for the respective wholesale and retail contracts. Our relevant market participants are our existing counterparties and others who have participated in energy transactions at our delivery points. These participants have access to the same market data as WGL. We value our derivative contracts based on an “in-exchange” premise, and 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. | |
Our money market funds are Level 1 valuations and their carrying amount approximates fair value. Other short-term investments are primarily overnight investment accounts; therefore, their carrying amount approximates fair value based on Level 2 inputs. The maturity of our commercial paper outstanding at both December 31, 2014 and September 30, 2014 is under 30 days. Due to the short term nature of these notes, the carrying cost of our commercial paper approximates fair value using Level 2 inputs. Neither WGL's nor Washington Gas' long-term debt is actively traded. The fair value of long-term debt was estimated based on the quoted market prices of the U.S. Treasury issues having a similar term to maturity, adjusted for WGL's and/or Washington Gas' credit quality. Our long-term debt fair value measurement is classified as Level 3. | |
Non Recurring Basis | |
During the three months ended December 31, 2014, Washington Gas Resources recorded an impairment charge of its investment in ASDHI to its fair value using the income approach. The amount of the impairment was equivalent to the amount of the carrying value of $5.6 million and was due to management's assumption of the current valuation and expected return from the investment. The fair value of this investment was a Level 3 measurement. | |
Segment Reporting Policy | We have four reportable operating segments: regulated utility, retail energy-marketing, commercial energy systems and midstream energy services. The division of these segments into separate revenue generating components is based upon regulation, products and services. Our chief operating decision maker is our Chief Executive Officer. During the first quarter of 2015, our chief operating decision maker began evaluating segment performance based on Earnings Before Interest and Taxes (EBIT). EBIT is defined as earnings before interest and taxes from continuing operations. Items we do not include in EBIT are interest expense, dividends on Washington Gas preferred stock, and income taxes. EBIT includes transactions between reportable segments. Additionally, we also evaluate our operating segments based on other relevant factors, such as penetration into their respective markets and return on equity. |
Investment Policy | When determining how to account for our interests in other legal entities, WGL first evaluates if we are required to apply the variable interest entity (VIE) model to the entity, otherwise the entity is evaluated under the voting interest model. |
Under the VIE model, we have a controlling financial interest in a VIE (i.e. are the primary beneficiary) when we have current or potential rights that give us the power to direct the activities of a VIE that most significantly impact the VIE's economic performance combined with a variable interest that gives us the right to receive potentially significant benefits or the obligation to absorb potentially significant losses. When changes occur to the design of an entity we reconsider whether it is subject to the VIE model. We continuously evaluate whether we have a controlling financial interest in a VIE. | |
Under the voting interest model, we generally have a controlling financial interest in an entity where we currently hold, directly or indirectly, more than 50% of the voting rights or where we exercise control through substantive participating rights. However, we consider substantive rights held by other partners in determining if we hold a controlling financial interest, and in some cases, despite owning more than 50% of the common stock of an investee, an evaluation of our rights results in the determination that we do not have a controlling financial interest. We reevaluate whether we have a controlling financial interest in these entities when our voting or substantive participating rights change. | |
Unconsolidated affiliates are unconsolidated VIEs and other entities evaluated under the voting interest method in which we do not have a controlling financial interest, but over which we have varying degrees of influence. Where we have significant influence, the affiliates are accounted for as equity method investments. Where we do not have significant influence, the affiliates are accounted for under the cost method. Investments in, and advances to, affiliated companies are presented on a one-line basis in the caption “Investments in unconsolidated affiliates” on our Consolidated Balance Sheet. | |
WGL uses the Hypothetical Liquidation at Book Value (HLBV) methodology for certain equity method investments when the capital structure of the equity investment results in different liquidation rights and priorities than what is reflected by the underlying percentage ownership interests as defined by an equity investment agreement. For investments accounted for under the HLBV method, simply applying the percentage ownership interest to GAAP net income in order to determine earnings or losses does not accurately represent the income allocation and cash flow distributions that will ultimately be received by the investors. The equity investment agreements for ASD Solar, LP (ASD) and Meade Pipeline Co LLC (Meade) both have liquidation rights and priorities that are sufficiently different from the ownership percentages that the HLBV method was deemed appropriate. The calculation may vary in its complexity depending on the capital structure and the tax considerations for the investments. | |
WGL applies HLBV using a balance sheet approach. A calculation is prepared at each balance sheet date to determine the amount that WGL would receive if an equity investment entity were to liquidate all of its assets (as valued in accordance with GAAP) and distribute that cash to the investors based on the contractually defined liquidation priorities. The difference between the calculated liquidation distribution amounts at the beginning and the end of the reporting period is WGL's share of the earnings or losses from the equity investment for the period. | |
Meade is accounted for under the HLBV equity method of accounting, and any profits and losses are included in “Equity in earnings of unconsolidated affiliates” in the accompanying Consolidated Statement of Income and are added to or subtracted from the carrying amount of WGL's investment balance. | |
Our agreements with SunEdison and Nextility are accounted for as direct financing leases. WGSW records associated interest in the financing leases in "Other income (expenses)-net" line in the accompanying Consolidated Statement of Income. | |
Our investment in ASD is accounted for under the HLBV equity method of accounting; any profits and losses are included in “Equity in earnings of unconsolidated affiliates” in the accompanying Consolidated Statement of Income and are added to or subtracted from the carrying amount of WGSW's investment balance. | |
Crab Run is accounted for under the equity method of accounting; any profits and losses are included in “Equity in earnings of unconsolidated affiliates” in the accompanying Consolidated Statement of Income and are added to or subtracted from the carrying amount of WGL's investment balance. | |
Washington Gas Resources impaired its entire investment in ASDHI by its carrying value of $5.6 million due to management's assumption of the current valuation and expected return from the investment. | |
Constitution is accounted for under the equity method of accounting; any profits and losses are included in “Equity in earnings of unconsolidated affiliates” in the accompanying Consolidated Statement of Income and are added to or subtracted from the carrying amount of WGL's investment balance. The equity method is considered appropriate because Constitution is an LLC with specific ownership accounts and ownership between five and fifty percent resulting in WGL Midstream maintaining a more than minor influence over the partnership operating and financing policies. | |
Derivatives, Reporting Of Derivative Activity | DERIVATIVE INSTRUMENTS |
Regulated Utility Operations | |
Washington Gas enters into contracts related to the sale and purchase of natural gas that qualify as derivative instruments and are accounted for under ASC Topic 815. These derivative instruments are recorded at fair value on our balance sheet and Washington Gas does not designate any derivatives as hedges under ASC Topic 815. | |
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 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 locking in operating margins that Washington Gas will ultimately realize. The derivatives used under this program are subject to mark-to-market accounting treatment while the capacity and transportation resources are not. | |
Regulatory sharing mechanisms allow the profit from these transactions to be shared between Washington Gas' shareholders and customers; therefore, any changes in fair value are recorded through earnings, or as regulatory assets or liabilities to the extent that gains and losses associated with these derivative instruments will be included in the rates charged to customers when they are realized. Valuation changes for the portion of net profits to be retained for shareholders may cause significant period-to-period volatility in earnings from unrealized gains and losses. This volatility does not change the locked-in operating margins that Washington Gas expects to ultimately realize from these transactions through the use of its storage and transportation capacity resources. | |
All physically and financially settled contracts under our asset optimization program are reported on a net basis in the statements of income in “Utility cost of gas.” | |
Managing Price Risk. To manage price risk associated with acquiring natural gas supply for utility customers, Washington Gas enters into forward contracts, option contracts, financial contracts and other contracts, as authorized by its regulators. These instruments are accounted for as derivative instruments. Any gains and losses associated with these derivatives are recorded as regulatory liabilities or assets, respectively, to reflect the rate treatment for these economic hedging activities. | |
Managing Interest-Rate Risk. Washington Gas utilizes derivative instruments that are designed to minimize the risk of interest-rate volatility associated with planned issuances of debt securities. Any gains and losses associated with these types of derivatives are recorded as regulatory liabilities or assets, respectively, and amortized in accordance with regulatory requirements, typically over the life of the newly issued debt. | |
Non-Utility Operations | |
Managing Price Risk. WGL Energy Services enters into certain derivative contracts as part of managing the price risk associated with the sale and purchase of natural gas and electricity. WGL Midstream enters into derivative contracts for the purpose of optimizing its storage and transportation capacity as well as managing the transportation and storage assets on behalf of third parties. As the storage and transportation capacities utilized by WGL Midstream are not considered to be derivative instruments, they are not recorded at fair value on our consolidated balance sheets. Derivative instruments are recorded at fair value on our consolidated balance sheets. WGL Energy Services and WGL Midstream do not designate these derivatives as hedges under ASC Topic 815; therefore, changes in the fair value of these derivative instruments are reflected in the earnings of our non-utility operations and may cause significant period-to-period volatility in earnings. | |
Managing Interest-Rate Risk. WGL utilizes derivative instruments that are designed to minimize the risk of interest-rate volatility associated with future debt issuances. WGL elected cash flow hedge accounting for its interest rate derivative instruments which settled with the issuance of the related debt issuance in the first quarter of 2015. The effective portion of the gains and losses on the hedge were recorded within other comprehensive income and are being amortized over the life of the debt (through 2044). |
Accounts_Payable_and_Other_Acc1
Accounts Payable and Other Accrued Liabilities (Tables) | 3 Months Ended | |||||
Dec. 31, 2014 | ||||||
WGL Holdings, Inc. | ||||||
Accounts Payable and Other Accrued Liabilities | WGL Holdings, Inc. | |||||
(In millions) | 31-Dec-14 | 30-Sep-14 | ||||
Accounts payable—trade | $ | 300.9 | $ | 278.8 | ||
Employee benefits and payroll accruals | 14.3 | 19.8 | ||||
Other accrued liabilities | 21.2 | 14.6 | ||||
Total | $ | 336.4 | $ | 313.2 | ||
Washington Gas Light Company | ||||||
Accounts Payable and Other Accrued Liabilities | Washington Gas Light Company | |||||
(In millions) | 31-Dec-14 | 30-Sep-14 | ||||
Accounts payable—trade | $ | 144.4 | $ | 146.4 | ||
Employee benefits and payroll accruals | 13.5 | 18.2 | ||||
Other accrued liabilities | 16.3 | 11.9 | ||||
Total | $ | 174.2 | $ | 176.5 |
ShortTerm_Debt_Tables
Short-Term Debt (Tables) | 3 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Short Term Debt Tables [Abstract] | |||||||
Commited Credit Available | Committed Credit Available (In millions) | ||||||
31-Dec-14 | WGL(b) | Washington Gas | Total Consolidated | ||||
Committed credit agreements | |||||||
Unsecured revolving credit facility, expires December 19, 2019(a) | $ | 450 | $ | 350 | $ | 800 | |
Less: Commercial Paper | -212 | -138 | -350 | ||||
Net committed credit available | $ | 238 | $ | 212 | $ | 450 | |
Weighted average interest rate | 0.28% | 0.22% | 0.26% | ||||
30-Sep-14 | WGL(b) | Washington Gas | Total Consolidated | ||||
Committed credit agreements | |||||||
Unsecured revolving credit facility, expires April 3, 2017(a) | $ | 450 | $ | 350 | $ | 800 | |
Less: Commercial Paper | -364.5 | -89 | -453.5 | ||||
Net committed credit available | $ | 85.5 | $ | 261 | $ | 346.5 | |
Weighted average interest rate | 0.20% | 0.13% | 0.19% | ||||
(a)Both WGL and Washington Gas have the right to request extensions with the banks’ approval. WGL's revolving credit facility permits it to borrow an additional $100 million, with the banks’ approval, for a total of $550 million. Washington Gas’ revolving credit facility permits it to borrow an additional $100 million, with the banks’ approval, for a total of $450 million. | |||||||
(b)WGL includes all subsidiaries other than Washington Gas Light Company. |
LongTerm_Debt_Table
Long-Term Debt (Table) | 3 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Long Term Debt Tables | ||||||||
Senior Notes, MTN And Private Placement Notes Outstanding | Senior Notes, MTNs and Private Placement Notes Outstanding | |||||||
($ In millions) | WGL(a) | Washington Gas | Total Consolidated | |||||
31-Dec-14 | ||||||||
Long-term notes (b) | $ | 250 | $ | 741 | $ | 991 | ||
Weighted average interest rate | 3.66% | 5.56% | 5.06% | |||||
30-Sep-14 | ||||||||
Long-term notes (b) | $ | - | $ | 691 | $ | 691 | ||
Weighted average interest rate | n/a | 5.65% | 5.65% | |||||
(a)WGL includes all subsidiaries other than Washington Gas Light Company. | ||||||||
(b)Includes Senior Notes for WGL and both MTNs and private placement notes for Washington Gas. Includes current maturities and excludes any unamortized discounts or premiums. | ||||||||
Senior Notes, MTN and Private Placement Issuances and Retirements | Senior Notes, MTNs and Private Placement Issuances | |||||||
($ In millions) | Principal (a) | Interest Rate | Effective Cost(b) | Nominal Maturity Date | ||||
Three Months Ended December 31, 2014 | ||||||||
WGL | ||||||||
Issuances: | ||||||||
10/24/14 | $ | 100 | 2.25% | 2.42% | 11/1/19 | |||
10/24/14 | 125 | 4.60% | 5.11% | 11/1/44 | ||||
12/16/14 | 25 | 4.60% | 5.53% | 11/1/44 | ||||
Total | $ | 250 | ||||||
Washington Gas | ||||||||
Issuances: | ||||||||
12/15/14 | $ | 50 | 4.24% | 4.41% | 12/15/44 | |||
Total | $ | 50 | ||||||
Total consolidated issuances | $ | 300 | ||||||
(a)Excludes debt discounts or premiums. | ||||||||
(b)The estimated effective cost of the issued notes, including consideration of issuance fees and hedge costs. | ||||||||
MTN and Private Placement Issuances and Retirements | ||||||||
($ In millions) | Principal (a) | Interest Rate | Effective Cost(b) | Nominal Maturity Date | ||||
Three Months Ended December 31, 2013 | ||||||||
Washington Gas | ||||||||
Issuances: | ||||||||
12/5/13 | $ | 75 | 5.00% | 4.95% | 12/15/43 | |||
Total | $ | 75 | ||||||
Retirements: | ||||||||
11/7/13 | $ | 37 | 4.88% | n/a | 11/7/13 | |||
Total | $ | 37 | ||||||
(a)Excludes debt discounts or premiums. | ||||||||
(b)The estimated effective cost of the issued notes, including consideration of issuance fees and hedge costs. | ||||||||
Common_Shareholders_Equity_Tab
Common Shareholders' Equity (Tables) | 3 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
WGL Holdings, Inc. | ||||||||||||||
Components of Common Shareholders' Equity | WGL Holdings, Inc. | |||||||||||||
Components of Common Shareholders’ Equity | ||||||||||||||
(In thousands) | Common Stock Amount | Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss, Net of Taxes | Total | |||||||||
Balance at September 30, 2014 | $ | 525,932 | $ | 11,847 | $ | 716,758 | $ | -7,961 | $ | 1,246,576 | ||||
Net income | - | - | 64,218 | - | 64,218 | |||||||||
Other comprehensive loss | - | - | - | -4,005 | -4,005 | |||||||||
Repurchase of common stock | -41,485 | - | - | - | -41,485 | |||||||||
Stock-based compensation | 22 | -474 | - | - | -452 | |||||||||
Dividends declared: | ||||||||||||||
Common stock | - | - | -21,872 | - | -21,872 | |||||||||
Preferred stock | - | - | -330 | - | -330 | |||||||||
Balance at December 31, 2014 | $ | 484,469 | $ | 11,373 | $ | 758,774 | $ | -11,966 | $ | 1,242,650 | ||||
Washington Gas Light Company | ||||||||||||||
Components of Common Shareholders' Equity | Washington Gas Light Company | |||||||||||||
Components of Common Shareholder's Equity | ||||||||||||||
(In thousands) | Common Stock Amount | Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss, Net of Taxes | Total | |||||||||
Balance at September 30, 2014 | $ | 46,479 | $ | 480,620 | $ | 529,480 | $ | -6,413 | $ | 1,050,166 | ||||
Net income | - | - | 64,951 | - | 64,951 | |||||||||
Other comprehensive income | - | - | - | 189 | 189 | |||||||||
Stock-based compensation | - | -500 | - | - | -500 | |||||||||
Dividends declared: | ||||||||||||||
Common stock | - | - | -19,262 | - | -19,262 | |||||||||
Preferred stock | - | - | -330 | - | -330 | |||||||||
Balance at December 31, 2014 | $ | 46,479 | $ | 480,120 | $ | 574,839 | $ | -6,224 | $ | 1,095,214 |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Earnings Per Share Tables [Abstract] | |||||||
Earnings per Share | Basic and Diluted EPS | ||||||
(in thousands, except per share data) | Net Income Applicable to Common Stock | Shares | Per Share Amount | ||||
Three Months Ended December 31, 2014 | |||||||
Basic EPS | $ | 63,888 | 49,946 | $ | 1.28 | ||
Stock-based compensation plans | - | 145 | |||||
Diluted EPS | $ | 63,888 | 50,091 | $ | 1.28 | ||
Three Months Ended December 31, 2013 | |||||||
Basic EPS | $ | 18,629 | 51,816 | $ | 0.36 | ||
Stock-based compensation plans | - | 11 | |||||
Diluted EPS | $ | 18,629 | 51,827 | $ | 0.36 |
Derivative_and_Weather_Related1
Derivative and Weather Related Instruments (Tables) | 3 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Absolute Notional Amounts of Open Positions on Derivative Instruments | Absolute Notional Amounts | |||||||||||||
of Open Positions on Derivative Instruments | ||||||||||||||
31-Dec-14 | Notional Amounts | |||||||||||||
Derivative transactions | WGL Holdings | Washington Gas | ||||||||||||
Natural Gas (In millions of therms) | ||||||||||||||
Asset Optimization | 21,580.50 | 14,394.00 | ||||||||||||
Retail sales | 29.3 | - | ||||||||||||
Other risk-management activities | 1,672.60 | 1,430.80 | ||||||||||||
Electricity (In millions of kWhs) | ||||||||||||||
Retail sales | 4,030.70 | - | ||||||||||||
Other risk-management activities | 19,133.30 | - | ||||||||||||
Interest Rate Swaps (In millions of dollars) | - | - | ||||||||||||
Absolute Notional Amounts | ||||||||||||||
of Open Positions on Derivative Instruments | ||||||||||||||
30-Sep-14 | Notional Amounts | |||||||||||||
Derivative transactions | WGL Holdings | Washington Gas | ||||||||||||
Natural Gas (In millions of therms) | ||||||||||||||
Asset Optimization | 20,593.30 | 13,740.90 | ||||||||||||
Retail sales | 44.7 | - | ||||||||||||
Other risk-management activities | 1,641.30 | 1,398.20 | ||||||||||||
Electricity (In millions of kWhs) | ||||||||||||||
Retail sales | 3,831.40 | - | ||||||||||||
Other risk-management activities | 16,734.10 | - | ||||||||||||
Warrants (In millions of shares) | 4.6 | - | ||||||||||||
Interest Rate Swaps (In millions of dollars) | 150 | - | ||||||||||||
Gains and (Losses) on Derivative Instruments | Gains and Losses on Derivative Instruments | |||||||||||||
WGL Holdings, Inc. | Washington Gas Light Company | |||||||||||||
(In millions) | ||||||||||||||
Three Months Ended December 31, | 2014 | 2013 | 2014 | 2013 | ||||||||||
Recorded to income | ||||||||||||||
Operating revenues—non-utility | $ | 75.4 | $ | -48.5 | $ | - | $ | - | ||||||
Utility cost of gas | 25.8 | -27.3 | 25.8 | -27.3 | ||||||||||
Non-utility cost of energy-related sales | -49.6 | 16.3 | - | - | ||||||||||
Other income-net | - | 0.1 | - | - | ||||||||||
Interest expense | -0.4 | - | - | - | ||||||||||
Recorded to regulatory assets | ||||||||||||||
Gas costs | 28.2 | -78.3 | 28.2 | -78.3 | ||||||||||
Recorded to other comprehensive income(a) | -8.2 | - | - | - | ||||||||||
Total | $ | 71.2 | $ | -137.7 | $ | 54 | $ | -105.6 | ||||||
(a) Represents the effective portion of our cash flow hedge. | ||||||||||||||
Potential Collateral Requirements for Derivative Liabilities with Credit-risk-Contingent Features | Potential Collateral Requirements for Derivative Liabilities | |||||||||||||
with Credit-Risk-Contingent Features | ||||||||||||||
(In millions) | WGL Holdings, Inc. | Washington Gas | ||||||||||||
31-Dec-14 | ||||||||||||||
Derivative liabilities with credit-risk-contingent features | $ | 59.4 | $ | 15.3 | ||||||||||
Maximum potential collateral requirements | 41.7 | 6.7 | ||||||||||||
30-Sep-14 | ||||||||||||||
Derivative liabilities with credit-risk-contingent features | $ | 28.8 | $ | 20.6 | ||||||||||
Maximum potential collateral requirements | 16.5 | 16.1 | ||||||||||||
WGL Holdings, Inc. | ||||||||||||||
Balance Sheet Classification of Derivative Instruments | WGL Holdings, Inc. | |||||||||||||
Balance Sheet Classification of Derivative Instruments | ||||||||||||||
(In millions) | Derivative Instruments Not Designated as Hedging Instruments | Derivative Instruments Designated as Hedging Instruments | ||||||||||||
As of December 31, 2014 | Gross Derivative Assets | Gross Derivative Liabilities | Gross Derivative Assets | Gross Derivative Liabilities | Netting of Collateral | Total(a) | ||||||||
Current Assets—Derivatives | $ | 81.5 | $ | -30.1 | $ | - | $ | - | $ | -11.5 | $ | 39.9 | ||
Deferred Charges and Other Assets—Derivatives | 27.8 | - | - | - | - | 27.8 | ||||||||
Current Liabilities—Derivatives | 11.6 | -70.6 | - | - | 4.2 | -54.8 | ||||||||
Deferred Credits—Derivatives | 22.6 | -286.6 | - | - | 4.8 | -259.2 | ||||||||
Total | $ | 143.5 | $ | -387.3 | $ | - | $ | - | $ | -2.5 | $ | -246.3 | ||
As of September 30, 2014 | ||||||||||||||
Current Assets—Derivatives | $ | 20.8 | $ | -2.5 | $ | - | $ | - | $ | - | $ | 18.3 | ||
Deferred Charges and Other Assets—Derivatives | 18.7 | - | - | - | - | 18.7 | ||||||||
Current Liabilities—Derivatives | 15.4 | -70.3 | - | -1.7 | 8 | -48.6 | ||||||||
Deferred Credits—Derivatives | 17.7 | -316.4 | - | - | 4 | -294.7 | ||||||||
Total | $ | 72.6 | $ | -389.2 | $ | - | $ | -1.7 | $ | 12 | $ | -306.3 | ||
Washington Gas Light Company | ||||||||||||||
Balance Sheet Classification of Derivative Instruments | Washington Gas Light Company | |||||||||||||
Balance Sheet Classification of Derivative Instruments(b) | ||||||||||||||
(In millions) | ||||||||||||||
As of December 31, 2014 | Gross Derivative Assets | Gross Derivative Liabilities | Netting of Collateral | Total(a) | ||||||||||
Current Assets—Derivatives | $ | 26.3 | $ | -14.7 | $ | - | $ | 11.6 | ||||||
Deferred Charges and Other Assets—Derivatives | 11.7 | - | - | 11.7 | ||||||||||
Current Liabilities—Derivatives | 4.9 | -29.8 | - | -24.9 | ||||||||||
Deferred Credits—Derivatives | 4 | -226.7 | - | -222.7 | ||||||||||
Total | $ | 46.9 | $ | -271.2 | $ | - | $ | -224.3 | ||||||
As of September 30, 2014 | ||||||||||||||
Current Assets—Derivatives | $ | 3.9 | $ | - | $ | - | $ | 3.9 | ||||||
Deferred Charges and Other Assets—Derivatives | 9.5 | - | - | 9.5 | ||||||||||
Current Liabilities—Derivatives | 8.6 | -43.2 | 0.7 | -33.9 | ||||||||||
Deferred Credits—Derivatives | 4.2 | -265.2 | 0.2 | -260.8 | ||||||||||
Total | $ | 26.2 | $ | -308.4 | $ | 0.9 | $ | -281.3 | ||||||
(a)WGL has elected to offset the fair value of recognized derivative instruments against the right to reclaim or the obligation to return collateral for derivative instruments executed under the same master netting arrangement in accordance with ASC 815. All recognized derivative contracts and associated financial collateral subject to a master netting arrangement or similar that is eligible for offset under ASC 815 have been presented net in the balance sheet. | ||||||||||||||
(b)Washington Gas did not have any derivative instruments outstanding that were designated as hedging instruments at December 31, 2014 or September 30, 2014. |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Quantitative Information about Level 3 Fair Value Measurements | ||||||||||||
Quantitative Information about Level 3 Fair Value Measurements | ||||||||||||
Net Fair Value December 31, 2014 | Valuation Techniques | Unobservable Inputs | Range | |||||||||
WGL Holdings, Inc. | (In millions) | |||||||||||
Natural gas related derivatives | ($252.60) | Discounted Cash Flow | Natural Gas Basis Price (per dekatherm) | ($1.729) - | $3.62 | |||||||
Option Model | Natural Gas Basis Price (per dekatherm) | ($1.000) - | $2.87 | |||||||||
Annualized Volatility of Spot Market Natural Gas | 30.5% - | 589.60% | ||||||||||
Electricity related derivatives | ($11.50) | Discounted Cash Flow | Electricity Congestion Price (per megawatt hour) | ($3.103) - | $71.05 | |||||||
Washington Gas Light Company | ||||||||||||
Natural gas related derivatives | ($234.80) | Discounted Cash Flow | Natural Gas Basis Price (per dekatherm) | ($1.729) - | $3.10 | |||||||
Net Fair Value September 30, 2014 | ||||||||||||
WGL Holdings, Inc. | ||||||||||||
Natural gas related derivatives | ($294.70) | Discounted Cash Flow | Natural Gas Basis Price (per dekatherm) | ($2.101) - | $6.15 | |||||||
Option Model | Natural Gas Basis Price (per dekatherm) | ($1.675) - | $6.15 | |||||||||
Annualized Volatility of Spot Market Natural Gas | 30.9% - | 589.60% | ||||||||||
Electricity related derivatives | ($5.00) | Discounted Cash Flow | Electricity Congestion Price (per megawatt hour) | ($2.85) - | $90.95 | |||||||
Washington Gas Light Company | ||||||||||||
Natural gas related derivatives | ($270.60) | Discounted Cash Flow | Natural Gas Basis Price (per dekatherm) | ($2.101) - | $6.15 | |||||||
WGL Holdings, Inc. | ||||||||||||
Fair Value Measurements Under the Fair Value Hierarchy | WGL Holdings, Inc. | |||||||||||
Fair Value Measurements Under the Fair Value Hierarchy | ||||||||||||
(In millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||
At December 31, 2014 | ||||||||||||
Assets | ||||||||||||
Natural gas related derivatives | $ | - | $ | 82 | $ | 40.6 | $ | 122.6 | ||||
Electricity related derivatives | - | 2.6 | 18.3 | 20.9 | ||||||||
Total Assets | $ | - | $ | 84.6 | $ | 58.9 | $ | 143.5 | ||||
Liabilities | ||||||||||||
Natural gas related derivatives | $ | - | $ | -60.3 | $ | -293.2 | $ | -353.5 | ||||
Electricity related derivatives | - | -4 | -29.8 | -33.8 | ||||||||
Total Liabilities | $ | - | $ | -64.3 | $ | -323 | $ | -387.3 | ||||
At September 30, 2014 | ||||||||||||
Assets | ||||||||||||
Natural gas related derivatives | $ | - | $ | 22.7 | $ | 33.7 | $ | 56.4 | ||||
Electricity related derivatives | - | 0.3 | 15.9 | 16.2 | ||||||||
Total Assets | $ | - | $ | 23 | $ | 49.6 | $ | 72.6 | ||||
Liabilities | ||||||||||||
Natural gas related derivatives | $ | - | $ | -39.8 | $ | -328.4 | $ | -368.2 | ||||
Electricity related derivatives | - | -0.1 | -20.9 | -21 | ||||||||
Interest rate derivatives | - | -1.7 | - | -1.7 | ||||||||
Total Liabilities | $ | - | $ | -41.6 | $ | -349.3 | $ | -390.9 | ||||
Reconciliation of Fair Value Measurements Using Significant Level 3 Inputs | ||||||||||||
WGL Holdings, Inc. Reconciliation of Fair Value Measurements Using Significant Level 3 Inputs | ||||||||||||
(In millions) | Natural Gas Related Derivatives | Electricity Related Derivatives | Warrants | Total | ||||||||
Three Months Ended December 31, 2014 | ||||||||||||
Balance at October 1, 2014 | $ | -294.7 | $ | -5 | $ | - | $ | -299.7 | ||||
Realized and unrealized gains (losses) | ||||||||||||
Recorded to income | 20.3 | -10.9 | - | 9.4 | ||||||||
Recorded to regulatory assets - gas costs | 13.6 | - | - | 13.6 | ||||||||
Transfers out of Level 3 | -1.7 | - | - | -1.7 | ||||||||
Purchases | - | 3.2 | - | 3.2 | ||||||||
Settlements | 9.9 | 1.2 | - | 11.1 | ||||||||
Balance at December 31, 2014 | $ | -252.6 | $ | -11.5 | $ | - | $ | -264.1 | ||||
Three Months Ended December 31, 2013 | ||||||||||||
Balance at October 1, 2013 | $ | -155.2 | $ | 2.4 | $ | 1.1 | $ | -151.7 | ||||
Realized and unrealized gains (losses) | ||||||||||||
Recorded to income | -46.7 | -7.9 | 0.1 | -54.5 | ||||||||
Recorded to regulatory assets - gas costs | -72 | - | - | -72 | ||||||||
Purchases | - | 1.4 | - | 1.4 | ||||||||
Settlements | 9.4 | 2.4 | - | 11.8 | ||||||||
Balance at December 31, 2013 | $ | -264.5 | $ | -1.7 | $ | 1.2 | $ | -265 | ||||
Realized and Unrealized Gains (Losses) Recorded to Income for Level 3 Measurements | WGL Holdings, Inc. Realized and Unrealized Gains (Losses) Recorded to Income for Level 3 Measurements | |||||||||||
Three Months Ended December 31, 2014 | ||||||||||||
(In millions) | Natural Gas Related Derivatives | Electricity Related Derivatives | Warrants | Total | ||||||||
Operating revenues—non-utility | $ | 10.5 | $ | 20.8 | $ | - | $ | 31.3 | ||||
Utility cost of gas | 14.7 | - | - | 14.7 | ||||||||
Non-utility cost of energy-related sales | -4.9 | -31.7 | - | -36.6 | ||||||||
Total | $ | 20.3 | $ | -10.9 | $ | - | $ | 9.4 | ||||
Three Months Ended December 31, 2013 | ||||||||||||
(In millions) | Natural Gas Related Derivatives | Electricity Related Derivatives | Warrants | Total | ||||||||
Operating revenues—non-utility | $ | -25.8 | $ | -10 | $ | - | $ | -35.8 | ||||
Utility cost of gas | -23.4 | - | - | -23.4 | ||||||||
Other income-net | - | - | 0.1 | 0.1 | ||||||||
Non-utility cost of energy-related sales | 2.5 | 2.1 | - | 4.6 | ||||||||
Total | $ | -46.7 | $ | -7.9 | $ | 0.1 | $ | -54.5 | ||||
Unrealized Gains (Losses) Recorded for Level 3 Measurements | WGL Holdings, Inc. Unrealized Gains (Losses) Recorded for Level 3 Measurements | |||||||||||
Three Months Ended December 31, 2014 | ||||||||||||
(In millions) | Natural Gas Related Derivatives | Electricity Related Derivatives | Warrants | Total | ||||||||
Recorded to income | ||||||||||||
Operating revenues—non-utility | $ | 11.9 | $ | 20.8 | $ | - | $ | 32.7 | ||||
Utility cost of gas | 14.8 | - | - | 14.8 | ||||||||
Non-utility cost of energy-related sales | -5.5 | -27.1 | - | -32.6 | ||||||||
Recorded to regulatory assets—gas costs | 18.5 | - | - | 18.5 | ||||||||
Total | $ | 39.7 | $ | -6.3 | $ | - | $ | 33.4 | ||||
Three Months Ended December 31, 2013 | ||||||||||||
(In millions) | Natural Gas Related Derivatives | Electricity Related Derivatives | Warrants | Total | ||||||||
Recorded to income | ||||||||||||
Operating revenues—non-utility | $ | -25.2 | $ | -5 | $ | - | $ | -30.2 | ||||
Utility cost of gas | -22.9 | - | - | -22.9 | ||||||||
Non-utility cost of energy-related sales | 2.3 | 1 | - | 3.3 | ||||||||
Other income-net | - | - | 0.1 | 0.1 | ||||||||
Operation and maintenance expense | - | - | - | - | ||||||||
Recorded to regulatory assets—gas costs | -71.1 | - | - | -71.1 | ||||||||
Total | $ | -116.9 | $ | -4 | $ | 0.1 | $ | -120.8 | ||||
Fair Value of Financial Instruments | WGL Holdings, Inc. Fair Value of Financial Instruments | |||||||||||
31-Dec-14 | 30-Sep-14 | |||||||||||
(In millions) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||
Money market funds(a) | $ | 11.9 | $ | 11.9 | $ | 9.7 | $ | 9.7 | ||||
Other short-term investments(a) | $ | 0.4 | $ | 0.4 | $ | - | $ | - | ||||
Commercial paper (b) | $ | 350 | $ | 350 | $ | 453.5 | $ | 453.5 | ||||
Long-term debt(c) | $ | 975.6 | $ | 1,116.70 | $ | 679.2 | $ | 809.3 | ||||
Washington Gas Light Company | ||||||||||||
Fair Value Measurements Under the Fair Value Hierarchy | Washington Gas Light Company | |||||||||||
Fair Value Measurements Under the Fair Value Hierarchy | ||||||||||||
(In millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||
At December 31, 2014 | ||||||||||||
Assets | ||||||||||||
Natural gas related derivatives | $ | - | $ | 35.5 | $ | 11.4 | $ | 46.9 | ||||
Total Assets | $ | - | $ | 35.5 | $ | 11.4 | $ | 46.9 | ||||
Liabilities | ||||||||||||
Natural gas related derivatives | $ | - | $ | -25 | $ | -246.2 | $ | -271.2 | ||||
Total Liabilities | $ | - | $ | -25 | $ | -246.2 | $ | -271.2 | ||||
At September 30, 2014 | ||||||||||||
Assets | ||||||||||||
Natural gas related derivatives | $ | - | $ | 13.5 | $ | 12.7 | $ | 26.2 | ||||
Total Assets | $ | - | $ | 13.5 | $ | 12.7 | $ | 26.2 | ||||
Liabilities | ||||||||||||
Natural gas related derivatives | $ | - | $ | -25.1 | $ | -283.3 | $ | -308.4 | ||||
Total Liabilities | $ | - | $ | -25.1 | $ | -283.3 | $ | -308.4 | ||||
Reconciliation of Fair Value Measurements Using Significant Level 3 Inputs | ||||||||||||
Washington Gas Light Company Reconciliation of Fair Value Measurements Using Significant Level 3 Inputs | ||||||||||||
(In millions) | Natural Gas Related Derivatives | |||||||||||
Three Months Ended December 31, 2014 | ||||||||||||
Balance at October 1, 2014 | $ | -270.6 | ||||||||||
Realized and unrealized gains (losses) | ||||||||||||
Recorded to income | 14.7 | |||||||||||
Recorded to regulatory assets - gas costs | 13.6 | |||||||||||
Transfers out of Level 3 | -1.7 | |||||||||||
Settlements | 9.2 | |||||||||||
Balance at December 31, 2014 | $ | -234.8 | ||||||||||
Three Months Ended December 31, 2013 | ||||||||||||
Balance at October 1, 2013 | $ | -133.6 | ||||||||||
Realized and unrealized gains (losses) | ||||||||||||
Recorded to income | -23.4 | |||||||||||
Recorded to regulatory assets - gas costs | -72 | |||||||||||
Settlements | 9 | |||||||||||
Balance at December 31, 2013 | $ | -220 | ||||||||||
Realized and Unrealized Gains (Losses) Recorded to Income for Level 3 Measurements | Washington Gas Light Company Realized and Unrealized Gains (Losses) Recorded to Income for Level 3 Measurements | |||||||||||
Three Months Ended December 31, 2014 | ||||||||||||
(In millions) | Natural Gas Related Derivatives | |||||||||||
Utility cost of gas | $ | 14.7 | ||||||||||
Total | $ | 14.7 | ||||||||||
Three Months Ended December 31, 2013 | ||||||||||||
(In millions) | Natural Gas Related Derivatives | |||||||||||
Utility cost of gas | $ | -23.4 | ||||||||||
Operation and maintenance expense | - | |||||||||||
Total | $ | -23.4 | ||||||||||
Unrealized Gains (Losses) Recorded for Level 3 Measurements | Washington Gas Light Company Unrealized Gains (Losses) Recorded for Level 3 Measurements | |||||||||||
Three Months Ended December 31, 2014 | ||||||||||||
(In millions) | Natural Gas Related Derivatives | |||||||||||
Recorded to income | ||||||||||||
Utility cost of gas | $ | 14.8 | ||||||||||
Recorded to regulatory assets—gas costs | 18.5 | |||||||||||
Total | $ | 33.3 | ||||||||||
Three Months Ended December 31, 2013 | ||||||||||||
(In millions) | Natural Gas Related Derivatives | |||||||||||
Recorded to income | ||||||||||||
Utility cost of gas | $ | -22.9 | ||||||||||
Operation and maintenance expense | - | |||||||||||
Recorded to regulatory assets—gas costs | -71.1 | |||||||||||
Total | $ | -94 | ||||||||||
Fair Value of Financial Instruments | Washington Gas Light Company Fair Value of Financial Instruments | |||||||||||
31-Dec-14 | 30-Sep-14 | |||||||||||
(In millions) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||
Money market funds(a) | $ | 4.6 | $ | 4.6 | $ | 4.3 | $ | 4.3 | ||||
Other short-term investments(a) | $ | 0.4 | $ | 0.4 | $ | - | $ | - | ||||
Commercial paper (b) | $ | 138 | $ | 138 | $ | 89 | $ | 89 | ||||
Long-term debt(c) | $ | 727.2 | $ | 870.3 | $ | 679.2 | $ | 809.3 | ||||
(a)Balance is located in cash and cash equivalents in the accompanying balance sheets. These amounts may be offset by outstanding checks. | ||||||||||||
(b)Balance is located in notes payable in the accompanying balance sheets. | ||||||||||||
(c)Less current maturities and unamortized discounts. | ||||||||||||
Operating_Segment_Reporting_Ta
Operating Segment Reporting (Tables) | 3 Months Ended | |||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||||||
Segment Reporting Information Operating Income Loss Table [Abstract] | ||||||||||||||||||||||||||||||||||||
Operating Segment Financial Information | Operating Segment Financial Information | |||||||||||||||||||||||||||||||||||
(In thousands) | Operating Revenues(a) | Depreciation & Amortization | Equity in Earnings of Unconsolidated Affiliates | EBIT | Total Assets | Capital Expenditures | Equity Method Investments | |||||||||||||||||||||||||||||
Three Months Ended December 31, 2014 | ||||||||||||||||||||||||||||||||||||
Regulated utility | $ | 387,193 | $ | 26,952 | $ | - | $ | 114,627 | $ | 4,200,780 | $ | 89,603 | $ | - | ||||||||||||||||||||||
Retail energy-marketing | 330,489 | 167 | - | -15,895 | 436,204 | 34 | - | |||||||||||||||||||||||||||||
Commercial energy systems | 9,539 | 2,235 | 577 | 259 | 544,682 | 43,317 | 66,100 | |||||||||||||||||||||||||||||
Midstream energy services | 28,092 | 31 | 536 | 26,771 | 249,789 | - | 36,167 | |||||||||||||||||||||||||||||
Other activities | - | - | 31 | -7,099 | 409,123 | - | 48 | |||||||||||||||||||||||||||||
Eliminations(b) | -6,076 | -25 | - | -32 | -692,486 | - | - | |||||||||||||||||||||||||||||
Total consolidated | $ | 749,237 | $ | 29,360 | $ | 1,144 | $ | 118,631 | $ | 5,148,092 | $ | 132,954 | $ | 102,315 | ||||||||||||||||||||||
Three Months Ended December 31, 2013 | ||||||||||||||||||||||||||||||||||||
Regulated utility | $ | 390,415 | $ | 25,369 | $ | - | $ | 65,453 | $ | 3,828,709 | $ | 55,092 | $ | - | ||||||||||||||||||||||
Retail energy-marketing | 322,938 | 174 | - | 5,290 | 418,633 | 75 | - | |||||||||||||||||||||||||||||
Commercial energy systems | 4,717 | 1,093 | 284 | -596 | 380,241 | 3,138 | 66,526 | |||||||||||||||||||||||||||||
Midstream energy services | -33,173 | 31 | 206 | -34,209 | 171,420 | - | 10,813 | |||||||||||||||||||||||||||||
Other activities | - | - | - | -2,661 | 299,769 | - | 413 | |||||||||||||||||||||||||||||
Eliminations(b) | -4,600 | -77 | - | 144 | -467,246 | - | - | |||||||||||||||||||||||||||||
Total consolidated | $ | 680,297 | $ | 26,590 | $ | 490 | $ | 33,421 | $ | 4,631,526 | $ | 58,305 | $ | 77,752 | ||||||||||||||||||||||
(a) | Operating revenues are reported gross of revenue taxes. Revenue taxes of both the regulated utility and the retail energy-marketing segments include gross receipt taxes. Revenue taxes of the regulated utility segment also include PSC fees, franchise fees and energy taxes. Operating revenue amounts in the "Eliminations" row represent total intersegment revenues associated with sales from the regulated utility segment to the retail energy-marketing segment. Midstream Energy Services' cost of energy related sales is netted with its gross revenues. | |||||||||||||||||||||||||||||||||||
(b) | Intersegment eliminations include a timing difference between Commercial Energy Systems’ recognition of revenue for the sale of Solar Renewable Energy Credits (SRECs) to Retail Energy-Marketing and Retail Energy-Marketing’s recognition of the associated expense. Retail Energy-Marketing has recorded a portion of the SREC’s purchased as inventory to be used in future periods at which time they will be expensed. | |||||||||||||||||||||||||||||||||||
Reconciliation from EBIT to net income applicable to common stock | The following table is a reconciliation from EBIT to net income applicable to common stock. | |||||||||||||||||||||||||||||||||||
Three Months Ended December 31, | ||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||
Total consolidated EBIT | $ | 118,631 | $ | 33,421 | ||||||||||||||||||||||||||||||||
Interest expense | 12,310 | 8,992 | ||||||||||||||||||||||||||||||||||
Income before income taxes | 106,321 | 24,429 | ||||||||||||||||||||||||||||||||||
Income tax expense | 42,103 | 5,470 | ||||||||||||||||||||||||||||||||||
Net income | 64,218 | 18,959 | ||||||||||||||||||||||||||||||||||
Dividends on Washington Gas Light Company preferred stock | 330 | 330 | ||||||||||||||||||||||||||||||||||
Net income applicable to common stock | $ | 63,888 | $ | 18,629 | ||||||||||||||||||||||||||||||||
Other_Investment_Tables
Other Investment (Tables) | 3 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Other Investments [Abstract] | |||||||
Minimum Payments Receivable for Direct Financing Leases | Minimum Payments Receivable for Direct Financing Leases | ||||||
(In millions) | |||||||
2015 | $ | 1.6 | |||||
2016 | 2 | ||||||
2017 | 1.9 | ||||||
2018 | 1.8 | ||||||
2019 | 1.7 | ||||||
Thereafter | 12.4 | ||||||
Total | $ | 21.4 | |||||
Location of Investments | |||||||
WGL Holdings, Inc. | |||||||
Balance Sheet Location of Other Investments | |||||||
As of December 31, 2014 (in millions) | VIEs | Non-VIEs | Total | ||||
Assets | |||||||
Investments in unconsolidated affiliates | $ | 76.5 | $ | 25.8 | $ | 102.3 | |
Investments in direct financing leases, capital leases | 17.7 | - | 17.7 | ||||
Accounts Receivable | 1.6 | - | 1.6 | ||||
Total assets | $ | 95.8 | $ | 25.8 | $ | 121.6 | |
As of September 30, 2014 (in millions) | |||||||
Assets | |||||||
Investments in unconsolidated affiliates | $ | 72.6 | $ | 27.9 | $ | 100.5 | |
Investments in direct financing leases, capital leases | 18.2 | - | 18.2 | ||||
Accounts receivable | 1.7 | - | 1.7 | ||||
Total assets | $ | 92.5 | $ | 27.9 | $ | 120.4 | |
WGL Holdings, Inc. | |||||||
Income Statement Location of Other Investments | |||||||
Three Months Ended December 31, 2014 (in millions) | VIEs | Non-VIEs | Total | ||||
Equity in earnings of unconsolidated affiliates | $ | 0.6 | $ | 0.5 | $ | 1.1 | |
Depreciation and amortization | 0.1 | - | 0.1 | ||||
Other income (expenses) - net | 0.6 | -5.6 | -5 | ||||
Net income (loss) | $ | 1.1 | $ | -5.1 | $ | -4 | |
Three Months Ended December 31, 2013 (in millions) | |||||||
Equity in earnings of unconsolidated affiliates | $ | 0.3 | $ | 0.2 | $ | 0.5 | |
Depreciation and amortization | 0.1 | - | 0.1 | ||||
Other income - net | 0.9 | - | 0.9 | ||||
Net income | $ | 1.1 | $ | 0.2 | $ | 1.3 |
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 3 Months Ended | |||||
Dec. 31, 2014 | ||||||
RelatedP arty Transactions [Abstract] | ||||||
Related Party Transactions | Washington Gas Light Company Receivables / Payables from Associated Companies | |||||
(In millions) | 31-Dec-14 | 30-Sep-14 | ||||
Receivables from Associated Companies | $ | 3.6 | $ | 4.8 | ||
Payables to Associated Companies | $ | 67.7 | $ | 54.7 | ||
Washington Gas Light Company - Gas Balancing Service Charges | ||||||
Three Months Ended | ||||||
December 31, | ||||||
(In millions) | 2014 | 2013 | ||||
Gas balancing service charge | $ | 5.5 | $ | 3.8 |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 3 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Commitments And Contingencies [Line Items] | |||||||||||||
Long Term Purchase Commitment [TextBlock] | |||||||||||||
Washington Gas Contract Minimums | |||||||||||||
(In millions) | Pipeline Contracts(a) | Gas Purchase Commitments(b) | |||||||||||
Remainder of 2015 | $ | 197.1 | $ | 161.3 | |||||||||
2016 | 218.7 | 393.3 | |||||||||||
2017 | 210.5 | 526.1 | |||||||||||
2018 | 211.3 | 538.6 | |||||||||||
2019 | 202.7 | 541.3 | |||||||||||
Thereafter | 1,172.60 | 6,285.20 | |||||||||||
Total | $ | 2,212.90 | $ | 8,445.80 | |||||||||
(a)Represents minimum payments for natural gas transportation, storage and peaking contracts that have expiration dates through fiscal year 2031. | |||||||||||||
(b)The contracts referenced above are estimated based on market prices at December 31, 2014. | |||||||||||||
Contract Minimums | |||||||||||||
WGL Energy Services | WGL Midstream | ||||||||||||
(In millions) | Gas Purchase Commitments(a) | Pipeline Contracts(b) | Electric Purchase Commitments(c) | Gas Purchase Commitments(d) | Pipeline Contracts(e) | Total | |||||||
Remainder of 2015 | $ | 128.3 | $ | 2.4 | $ | 380 | $ | 29.3 | $ | 13.9 | $ | 553.9 | |
2016 | 74.8 | 0.6 | 337.1 | 190.8 | 19.2 | 622.5 | |||||||
2017 | 21.4 | 0.6 | 105.3 | 310 | 17.7 | 455 | |||||||
2018 | 0.5 | 0.6 | 9.4 | 1,222.10 | 26.4 | 1,259.00 | |||||||
2019 | - | 0.6 | 0.1 | 1,345.60 | 24.6 | 1,370.90 | |||||||
Thereafter | - | 1.3 | - | 23,012.60 | 260.9 | 23,274.80 | |||||||
Total | $ | 225 | $ | 6.1 | $ | 831.9 | $ | 26,110.40 | $ | 362.7 | $ | 27,536.10 | |
(a)Represents fixed price commitments with city gate equivalent deliveries. | |||||||||||||
(b)Represents minimum payments for natural gas transportation and storage contracts that have expiration dates through fiscal year 2025. | |||||||||||||
(c)Represents electric purchase commitments that are based on existing fixed price and fixed volume contracts. Includes $23.8 million of commitments related to renewable energy credits. | |||||||||||||
(d)Includes short-term commitments to purchase fixed volumes of natural gas, as well as long-term gas purchase commitments that contain fixed volume purchase requirements. Cost estimates are based on forward market prices for purchases under these purchase commitments. | |||||||||||||
(e)Represents minimum payments for natural gas transportation and storage contracts that have expiration dates through fiscal year 2044. | |||||||||||||
Pension_and_Other_PostRetireme1
Pension and Other Post-Retirement Benefit Plan (Tables) | 3 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Pension And Other Post Retirement Benefit Plans Tables [Abstract] | |||||||||
Components of Net Periodic Benefit Costs (Income) | Components of Net Periodic Benefit Costs (Income) | ||||||||
Three Months Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Pension | Health and | Pension | Health and | ||||||
(In millions) | Benefits | Life Benefits | Benefits | Life Benefits | |||||
Components of Net Periodic Benefit Costs (Income) | |||||||||
Service cost | $ | 3.9 | $ | 1.7 | $ | 3.5 | $ | 2.1 | |
Interest cost | 9.8 | 3.7 | 10.1 | 5.4 | |||||
Expected return on plan assets | -11.2 | -5.2 | -10.3 | -4.7 | |||||
Amortization of prior service cost (credit) | 0.1 | -3.8 | 0.1 | -1 | |||||
Amortization of actuarial loss | 4.7 | 1.1 | 4.2 | 0.7 | |||||
Net periodic benefit cost | 7.3 | -2.5 | 7.6 | 2.5 | |||||
Amount allocated to construction projects | -1.1 | 0.5 | -1 | -0.4 | |||||
Amount deferred as regulatory asset (liability) - net | 1.8 | -0.1 | 1.8 | 0.1 | |||||
Amount charged (credited) to expense | $ | 8 | $ | -2.1 | $ | 8.4 | $ | 2.2 |
Changes_in_Accumulated_Other_C1
Changes in Accumulated Other Comprehensive Income (Tables) | 3 Months Ended | |||||
Dec. 31, 2014 | ||||||
Accumulated Other Comprehensive Income (Loss) [Abstract] | ||||||
Changes in Accumulated Other Comprehensive Income by Component | WGL Holdings, Inc. | |||||
Changes in Accumulated Other Comprehensive Income by Component | ||||||
Three Months Ended December 31, | ||||||
2014 | 2013 | |||||
(In thousands) | ||||||
Beginning Balance | $ | -7,961 | $ | -11,048 | ||
Qualified cash flow hedging instruments(a) | -8,265 | - | ||||
Change in prior service credit (b) | -171 | -35 | ||||
Amortization of actuarial loss (b) | 484 | 364 | ||||
Current-period other comprehensive income (loss) | -7,952 | 329 | ||||
Income tax expense (benefit) related to other comprehensive income | -3,947 | 130 | ||||
Ending Balance | $ | -11,966 | $ | -10,849 | ||
(a) Cash flow hedging instruments represent interest rate swap agreements on debt issuances. Refer to Note 8-Derivative and weather-related instruments for further discussion of the interest rate swap agreements. | ||||||
(b) These accumulated other comprehensive income components are included in the computation of net periodic benefit cost. Refer to Note 14-Pension and other post-retirement benefit plans for additional details. | ||||||
Washington Gas Light Company | ||||||
Changes in Accumulated Other Comprehensive Income by Component | ||||||
Three Months Ended December 31, | ||||||
2014 | 2013 | |||||
(In thousands) | ||||||
Beginning Balance | $ | -6,413 | $ | -11,048 | ||
Change in prior service credit (a) | -171 | -35 | ||||
Amortization of actuarial loss (a) | 484 | 364 | ||||
Current-period other comprehensive income | 313 | 329 | ||||
Income tax expense related to other comprehensive income | 124 | 130 | ||||
Ending Balance | $ | -6,224 | $ | -10,849 | ||
(a) These accumulated other comprehensive income components are included in the computation of net periodic benefit cost. Refer to Note 14-Pension and other post-retirement benefit plans for additional details. |
Accounting_Policies_details
Accounting Policies (details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Washington Gas Light Company | ||
Accounting Policies [Line Items] | ||
Inventory Adjustments | ($0.70) | $0 |
WGL Midstream | ||
Accounting Policies [Line Items] | ||
Inventory Adjustments | -17.5 | 0 |
WGL Energy Services | ||
Accounting Policies [Line Items] | ||
Inventory Adjustments | $0 | $0 |
Accounts_Payable_and_Other_Acc2
Accounts Payable and Other Accrued Liabilities (Details) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 |
WGL Holdings, Inc. | ||
Accounts payable - trade | $300,900,000 | $278,800,000 |
Employee benefits and payroll accruals | 14,300,000 | 19,800,000 |
Other accrued liabilities | 21,200,000 | 14,600,000 |
Accounts Payable and Accrued Liabilities, Current, Total | 336,352,000 | 313,221,000 |
Washington Gas Light Company | ||
Accounts payable - trade | 144,400,000 | 146,400,000 |
Employee benefits and payroll accruals | 13,500,000 | 18,200,000 |
Other accrued liabilities | 16,300,000 | 11,900,000 |
Accounts Payable and Accrued Liabilities, Current, Total | $174,185,000 | $176,467,000 |
ShortTerm_Debt_Details
Short-Term Debt (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Sep. 30, 2014 | |||
Committed Credit | ||||
Line Of Credit Facility [Line Items] | ||||
Unsecured revolving credit facility | $800,000,000 | [1] | $800,000,000 | [1] |
Less: Commercial Paper | -350,000,000 | -453,500,000 | ||
Net committed credit available | 450,000,000 | 346,500,000 | ||
Short-term debt weighted average interest rate | 0.26% | 0.19% | ||
WGL Holdings, Inc. | ||||
Line Of Credit Facility [Line Items] | ||||
Less: Commercial Paper | -350,000,000 | -453,500,000 | ||
Credit agreement extension options | two one-year | |||
Outstanding bank loans | 0 | 0 | ||
Line of Credit Facility Expiration Period | 4 years 11 months 19 days | 2 years 6 months 3 days | ||
WGL Holdings, Inc. | Committed Credit | ||||
Footnote Details [Abstract] | ||||
Revolving credit facility maximum borrowing capacity | 550,000,000 | 550,000,000 | ||
Revolving credit facility additional borrowings | 100,000,000 | 100,000,000 | ||
Line Of Credit Facility [Line Items] | ||||
Unsecured revolving credit facility | 450,000,000 | [1],[2] | 450,000,000 | [1],[2] |
Less: Commercial Paper | -212,000,000 | [2] | -364,500,000 | [2] |
Net committed credit available | 238,000,000 | [2] | 85,500,000 | [2] |
Short-term debt weighted average interest rate | 0.28% | [2] | 0.20% | [2] |
Washington Gas Light Company | ||||
Line Of Credit Facility [Line Items] | ||||
Less: Commercial Paper | -138,000,000 | -89,000,000 | ||
Credit agreement extension options | two one-year | |||
Outstanding bank loans | 0 | 0 | ||
Line of Credit Facility Expiration Period | 4 years 11 months 19 days | 2 years 6 months 3 days | ||
Washington Gas Light Company | Committed Credit | ||||
Footnote Details [Abstract] | ||||
Revolving credit facility maximum borrowing capacity | 450,000,000 | 450,000,000 | ||
Revolving credit facility additional borrowings | 100,000,000 | 100,000,000 | ||
Line Of Credit Facility [Line Items] | ||||
Unsecured revolving credit facility | 350,000,000 | [1] | 350,000,000 | [1] |
Less: Commercial Paper | -138,000,000 | -89,000,000 | ||
Net committed credit available | $212,000,000 | $261,000,000 | ||
Short-term debt weighted average interest rate | 0.22% | 0.13% | ||
[1] | Both WGL and Washington Gas have the right to request extensions with the banksb approval. WGL's revolving credit facility permits it to borrow an additional $100 million, with the banksb approval, for a total of $550 million. Washington Gasb revolving credit facility permits it to borrow an additional $100 million, with the banksb approval, for a total of $450 million. | |||
[2] | WGL includes all subsidiaries other than Washington Gas Light Company. |
LongTerm_Debt_Details
Long-Term Debt (Details) (USD $) | 3 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | |||
Total consolidated issuances | ||||||
Long Term Debt Details [Line Items] | ||||||
Long-term notes | 300 | [1] | ||||
WGL Holdings, Inc. | ||||||
Long Term Debt Details [Line Items] | ||||||
Shelf registration | At December 31, 2014 and September 30, 2014, WGL had the capacity under a shelf registration to issue an unspecified amount of debt securities and Washington Gas had the capacity to issue up to $275.0 million of additional MTNs. | |||||
Issuances | Washington Gas Light Company | ||||||
Long Term Debt Details [Line Items] | ||||||
Issuance Date | 15-Dec-14 | 5-Dec-13 | ||||
Interest rate | 4.24% | 5.00% | ||||
Estimated effective interest rate | 4.41% | [2] | 4.95% | [2] | ||
Nominal Maturity Date | 15-Dec-44 | 15-Dec-43 | ||||
Principal | 50 | [1] | 75 | [1] | ||
Long-term notes | 50 | [1] | 75 | [1] | ||
Issuances | WGL Holdings, Inc. | ||||||
Long Term Debt Details [Line Items] | ||||||
Long-term notes | 250 | [1] | 0 | |||
Retirements | Washington Gas Light Company | ||||||
Long Term Debt Details [Line Items] | ||||||
Interest rate | 4.88% | |||||
Nominal Maturity Date | 7-Nov-13 | |||||
Principal | 0 | 37 | [1] | |||
Retirement Date | 7-Nov-13 | |||||
Long-term notes | 37 | [1] | ||||
Retirements | WGL Holdings, Inc. | ||||||
Long Term Debt Details [Line Items] | ||||||
Principal | 0 | |||||
Total Consolidated | ||||||
Long Term Debt Details [Line Items] | ||||||
Interest rate | 5.06% | 5.65% | ||||
Long-term notes | 991 | [3] | 691 | [3] | ||
Total Consolidated | Washington Gas Light Company | ||||||
Long Term Debt Details [Line Items] | ||||||
Interest rate | 5.56% | 5.65% | ||||
Long-term notes | 741 | [3] | 691 | [3] | ||
Total Consolidated | WGL Holdings, Inc. | ||||||
Long Term Debt Details [Line Items] | ||||||
Interest rate | 3.66% | [4] | ||||
Long-term notes | 250 | [3],[4] | 0 | [3],[4] | ||
Maturity-2019 Notes | Issuances | WGL Holdings, Inc. | ||||||
Long Term Debt Details [Line Items] | ||||||
Issuance Date | 24-Oct-14 | |||||
Interest rate | 2.25% | |||||
Estimated effective interest rate | 2.42% | [2] | ||||
Nominal Maturity Date | 1-Nov-19 | |||||
Principal | 100 | [1] | ||||
Maturity-2044 Notes | Issuances | WGL Holdings, Inc. | ||||||
Long Term Debt Details [Line Items] | ||||||
Issuance Date | 24-Oct-14 | |||||
Interest rate | 4.60% | |||||
Estimated effective interest rate | 5.11% | [2] | ||||
Nominal Maturity Date | 1-Nov-44 | |||||
Principal | 125 | [1] | ||||
December 16, 2014 | Issuances | WGL Holdings, Inc. | ||||||
Long Term Debt Details [Line Items] | ||||||
Issuance Date | 16-Dec-14 | |||||
Interest rate | 4.60% | |||||
Estimated effective interest rate | 5.53% | [2] | ||||
Nominal Maturity Date | 1-Nov-44 | |||||
Principal | 25 | [1] | ||||
[1] | Excludes debt discounts or premiums. | |||||
[2] | The estimated effective cost of the issued notes, including consideration of issuance fees and hedge costs. | |||||
[3] | Includes Senior Notes for WGL and both MTNs and private placement notes for Washington Gas. Includes current maturities and excludes any unamortized discounts or premiums. | |||||
[4] | WGL includes all subsidiaries other than Washington Gas Light Company. |
Common_Shareholders_Equity_Det
Common Shareholders' Equity (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
WGL Holdings, Inc. | ||
Common shareholders' equity, beginning balance | $1,246,576 | |
Shares outstanding, beginning balance | 50,656,553 | |
Net Income (Loss) | 64,218 | 18,959 |
OTHER COMPREHENSIVE INCOME (LOSS) | -4,005 | 199 |
Repurchase of common stock | -41,485 | 0 |
Stock-based compensation | -452 | |
Dividends declared: | ||
Common Stock | -21,872 | |
Preferred Stock | -330 | |
Common shareholders' equity, ending balance | 1,242,650 | |
Shares outstanding, ending balance | 49,708,750 | |
WGL Holdings, Inc. | Common Stock | ||
Common shareholders' equity, beginning balance | 525,932 | |
Net Income (Loss) | 0 | |
OTHER COMPREHENSIVE INCOME (LOSS) | 0 | |
Repurchase of common stock | -41,485 | |
Stock-based compensation | 22 | |
Dividends declared: | ||
Common Stock | 0 | |
Preferred Stock | 0 | |
Common shareholders' equity, ending balance | 484,469 | |
WGL Holdings, Inc. | Paid-In Capital | ||
Common shareholders' equity, beginning balance | 11,847 | |
Net Income (Loss) | 0 | |
OTHER COMPREHENSIVE INCOME (LOSS) | 0 | |
Repurchase of common stock | 0 | |
Stock-based compensation | -474 | |
Dividends declared: | ||
Common Stock | 0 | |
Preferred Stock | 0 | |
Common shareholders' equity, ending balance | 11,373 | |
WGL Holdings, Inc. | Retained Earnings | ||
Common shareholders' equity, beginning balance | 716,758 | |
Net Income (Loss) | 64,218 | |
OTHER COMPREHENSIVE INCOME (LOSS) | 0 | |
Repurchase of common stock | 0 | |
Stock-based compensation | 0 | |
Dividends declared: | ||
Common Stock | -21,872 | |
Preferred Stock | -330 | |
Common shareholders' equity, ending balance | 758,774 | |
WGL Holdings, Inc. | Accumulated Other Comprehensive Loss, Net of Taxes | ||
Common shareholders' equity, beginning balance | -7,961 | |
Net Income (Loss) | 0 | |
OTHER COMPREHENSIVE INCOME (LOSS) | -4,005 | |
Repurchase of common stock | 0 | |
Stock-based compensation | 0 | |
Dividends declared: | ||
Common Stock | 0 | |
Preferred Stock | 0 | |
Common shareholders' equity, ending balance | -11,966 | |
Washington Gas Light Company | ||
Common shareholders' equity, beginning balance | 1,050,166 | |
Shares outstanding, beginning balance | 46,479,536 | |
Net Income (Loss) | 64,951 | 38,807 |
OTHER COMPREHENSIVE INCOME (LOSS) | 189 | 199 |
Stock-based compensation | -500 | |
Dividends declared: | ||
Common Stock | -19,262 | |
Preferred Stock | -330 | |
Common shareholders' equity, ending balance | 1,095,214 | |
Shares outstanding, ending balance | 46,479,536 | |
Washington Gas Light Company | Common Stock | ||
Common shareholders' equity, beginning balance | 46,479 | |
Net Income (Loss) | 0 | |
OTHER COMPREHENSIVE INCOME (LOSS) | 0 | |
Stock-based compensation | 0 | |
Dividends declared: | ||
Common Stock | 0 | |
Preferred Stock | 0 | |
Common shareholders' equity, ending balance | 46,479 | |
Washington Gas Light Company | Paid-In Capital | ||
Common shareholders' equity, beginning balance | 480,620 | |
Net Income (Loss) | 0 | |
OTHER COMPREHENSIVE INCOME (LOSS) | 0 | |
Stock-based compensation | -500 | |
Dividends declared: | ||
Common Stock | 0 | |
Preferred Stock | 0 | |
Common shareholders' equity, ending balance | 480,120 | |
Washington Gas Light Company | Retained Earnings | ||
Common shareholders' equity, beginning balance | 529,480 | |
Net Income (Loss) | 64,951 | |
OTHER COMPREHENSIVE INCOME (LOSS) | 0 | |
Stock-based compensation | 0 | |
Dividends declared: | ||
Common Stock | -19,262 | |
Preferred Stock | -330 | |
Common shareholders' equity, ending balance | 574,839 | |
Washington Gas Light Company | Accumulated Other Comprehensive Loss, Net of Taxes | ||
Common shareholders' equity, beginning balance | -6,413 | |
Net Income (Loss) | 0 | |
OTHER COMPREHENSIVE INCOME (LOSS) | 189 | |
Stock-based compensation | 0 | |
Dividends declared: | ||
Common Stock | 0 | |
Preferred Stock | 0 | |
Common shareholders' equity, ending balance | ($6,224) |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Net Income (Loss) applicable to common stock | $63,888 | $18,629 |
Weighted Average Number of Shares Outstanding, Basic | 49,946 | 51,816 |
Stock-based compensation plans | 145 | 11 |
Diluted EPS | 50,091 | 51,827 |
Earnings Per Share, Basic | $1.28 | $0.36 |
Earnings Per Share, Diluted | $1.28 | $0.36 |
Antidilutive Securities Excluded from Computation of Diluted Earnings Per Share | 0 | 0 |
Income_TaxesIncome_Statement_D
Income Taxes-Income Statement (Details) (Washington Gas Light Company, USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Washington Gas Light Company | ||
Income Tax Expense Benefit Details [Line Items] | ||
Interest Expense For Uncertain Tax Position | $0 | $0 |
Income_TaxesBalance_Sheet_Deta
Income Taxes-Balance Sheet (Details) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 |
In Millions, unless otherwise specified | ||
Income Tax Expense Benefit Details [Line Items] | ||
Unrecognized Tax Benefits | $29.50 | $32.60 |
Washington Gas Light Company | ||
Income Tax Expense Benefit Details [Line Items] | ||
Accrued interest related to uncertain tax positions | $0 | $0.10 |
Derivative_and_Weather_Related2
Derivative and Weather Related Instruments Narrative (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
WGL Holdings, Inc. | ||
Interest-Rate Risk [Abstract] | ||
Ineffective portion of cash flow hedge-net | ($0.40) | |
Washington Gas Light Company | ||
Asset Optimization [Abstract] | ||
Gain (Loss) on Asset Optimization Transactions Net Pretax | 31.1 | -19.8 |
Unrealized Gains (Losses) On Asset Optimization Derivative Instruments Net Pretax | $25 | ($26.20) |
Derivative_and_Weather_Related3
Derivative and Weather Related Instruments (Details) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 | ||
In Millions, unless otherwise specified | ||||
WGL Energy Services | ||||
DerivativeCollateralAbstract | ||||
Right to Reclaim Cash | $12.20 | $5.70 | ||
Collateral Already Posted Aggregate Fair Value | 8.9 | 5.3 | ||
WGL Midstream | ||||
DerivativeCollateralAbstract | ||||
Right to Reclaim Cash | 5.3 | 11.4 | ||
Collateral Already Posted Aggregate Fair Value | 0 | 0 | ||
WGL Holdings, Inc. | ||||
Absolute Notional Amounts of Open Positions on Derivative Instruments | ||||
Interest rate swap notional principal value | 0 | 150 | ||
Warrant Transaction Volume | 4.6 | |||
Balance Sheet Classification of Derivative Instruments | ||||
Netting of Collateral | -2.5 | 12 | ||
Total | -246.3 | [1] | -306.3 | [1] |
WGL Holdings, Inc. | Derivative Instruments Designated as Hedging Instruments | ||||
Balance Sheet Classification of Derivative Instruments | ||||
Gross Derivative Liabilities | 0 | -1.7 | ||
WGL Holdings, Inc. | Derivative Instruments Not Designated as Hedging Instruments | ||||
Balance Sheet Classification of Derivative Instruments | ||||
Gross Derivative Assets | 143.5 | 72.6 | ||
Gross Derivative Liabilities | -387.3 | -389.2 | ||
WGL Holdings, Inc. | Current assets- derivatives | ||||
Balance Sheet Classification of Derivative Instruments | ||||
Netting of Collateral | -11.5 | 0 | ||
Total | 39.9 | [1] | 18.3 | [1] |
WGL Holdings, Inc. | Current assets- derivatives | Derivative Instruments Not Designated as Hedging Instruments | ||||
Balance Sheet Classification of Derivative Instruments | ||||
Gross Derivative Assets | 81.5 | 20.8 | ||
Gross Derivative Liabilities | -30.1 | -2.5 | ||
WGL Holdings, Inc. | Deferred Charges and Other Assets-Derivatives | ||||
Balance Sheet Classification of Derivative Instruments | ||||
Netting of Collateral | 0 | 0 | ||
Total | 27.8 | [1] | 18.7 | [1] |
WGL Holdings, Inc. | Deferred Charges and Other Assets-Derivatives | Derivative Instruments Not Designated as Hedging Instruments | ||||
Balance Sheet Classification of Derivative Instruments | ||||
Gross Derivative Assets | 27.8 | 18.7 | ||
Gross Derivative Liabilities | 0 | 0 | ||
WGL Holdings, Inc. | Current liabilities- Derivatives | ||||
Balance Sheet Classification of Derivative Instruments | ||||
Netting of Collateral | 4.2 | 8 | ||
Total | -54.8 | [1] | -48.6 | [1] |
WGL Holdings, Inc. | Current liabilities- Derivatives | Derivative Instruments Designated as Hedging Instruments | ||||
Balance Sheet Classification of Derivative Instruments | ||||
Gross Derivative Liabilities | 0 | -1.7 | ||
WGL Holdings, Inc. | Current liabilities- Derivatives | Derivative Instruments Not Designated as Hedging Instruments | ||||
Balance Sheet Classification of Derivative Instruments | ||||
Gross Derivative Assets | 11.6 | 15.4 | ||
Gross Derivative Liabilities | -70.6 | -70.3 | ||
WGL Holdings, Inc. | Deferred Credits-Derivatives | ||||
Balance Sheet Classification of Derivative Instruments | ||||
Netting of Collateral | 4.8 | 4 | ||
Total | -259.2 | [1] | -294.7 | [1] |
WGL Holdings, Inc. | Deferred Credits-Derivatives | Derivative Instruments Not Designated as Hedging Instruments | ||||
Balance Sheet Classification of Derivative Instruments | ||||
Gross Derivative Assets | 22.6 | 17.7 | ||
Gross Derivative Liabilities | -286.6 | -316.4 | ||
WGL Holdings, Inc. | Asset Optimization [Member] | ||||
Absolute Notional Amounts of Open Positions on Derivative Instruments | ||||
Natural Gas Derivative Transaction, Volume | 21,580,500,000 | 20,593,300,000 | ||
WGL Holdings, Inc. | Retail Sales [Member] | ||||
Absolute Notional Amounts of Open Positions on Derivative Instruments | ||||
Natural Gas Derivative Transaction, Volume | 29,300,000 | 44,700,000 | ||
Electricity Derivative Transaction, Volume | 4,030,700,000 | 3,831,400,000 | ||
WGL Holdings, Inc. | Other Risk Management Activities [Member] | ||||
Absolute Notional Amounts of Open Positions on Derivative Instruments | ||||
Natural Gas Derivative Transaction, Volume | 1,672,600,000 | 1,641,300,000 | ||
Electricity Derivative Transaction, Volume | 19,133,300,000 | 16,734,100,000 | ||
Washington Gas Light Company | ||||
DerivativeCollateralAbstract | ||||
Right to Reclaim Cash | 1.3 | 8.2 | ||
Derivative Collateral Obligation to Return Cash | 0.3 | 2.5 | ||
Collateral Already Posted Aggregate Fair Value | 0 | 0 | ||
Absolute Notional Amounts of Open Positions on Derivative Instruments | ||||
Interest rate swap notional principal value | 0 | 0 | ||
Warrant Transaction Volume | 0 | |||
Balance Sheet Classification of Derivative Instruments | ||||
Gross Derivative Assets | 46.9 | [2] | 26.2 | [2] |
Gross Derivative Liabilities | -271.2 | [2] | -308.4 | [2] |
Netting of Collateral | 0 | [2] | 0.9 | [2] |
Total | -224.3 | [1],[2] | -281.3 | [1],[2] |
Washington Gas Light Company | Current assets- derivatives | ||||
Balance Sheet Classification of Derivative Instruments | ||||
Gross Derivative Assets | 26.3 | [2] | 3.9 | [2] |
Gross Derivative Liabilities | -14.7 | [2] | 0 | [2] |
Netting of Collateral | 0 | [2] | 0 | [2] |
Total | 11.6 | [1],[2] | 3.9 | [1],[2] |
Washington Gas Light Company | Deferred Charges and Other Assets-Derivatives | ||||
Balance Sheet Classification of Derivative Instruments | ||||
Gross Derivative Assets | 11.7 | [2] | 9.5 | [2] |
Gross Derivative Liabilities | 0 | [2] | 0 | [2] |
Netting of Collateral | 0 | [2] | 0 | [2] |
Total | 11.7 | [1],[2] | 9.5 | [1],[2] |
Washington Gas Light Company | Current liabilities- Derivatives | ||||
Balance Sheet Classification of Derivative Instruments | ||||
Gross Derivative Assets | 4.9 | [2] | 8.6 | [2] |
Gross Derivative Liabilities | -29.8 | [2] | -43.2 | [2] |
Netting of Collateral | 0 | [2] | 0.7 | [2] |
Total | -24.9 | [1],[2] | -33.9 | [1],[2] |
Washington Gas Light Company | Deferred Credits-Derivatives | ||||
Balance Sheet Classification of Derivative Instruments | ||||
Gross Derivative Assets | 4 | [2] | 4.2 | [2] |
Gross Derivative Liabilities | -226.7 | [2] | -265.2 | [2] |
Netting of Collateral | 0 | [2] | 0.2 | [2] |
Total | ($222.70) | [1],[2] | ($260.80) | [1],[2] |
Washington Gas Light Company | Asset Optimization [Member] | ||||
Absolute Notional Amounts of Open Positions on Derivative Instruments | ||||
Natural Gas Derivative Transaction, Volume | 14,394,000,000 | 13,740,900,000 | ||
Washington Gas Light Company | Retail Sales [Member] | ||||
Absolute Notional Amounts of Open Positions on Derivative Instruments | ||||
Natural Gas Derivative Transaction, Volume | 0 | 0 | ||
Electricity Derivative Transaction, Volume | 0 | 0 | ||
Washington Gas Light Company | Other Risk Management Activities [Member] | ||||
Absolute Notional Amounts of Open Positions on Derivative Instruments | ||||
Natural Gas Derivative Transaction, Volume | 1,430,800,000 | 1,398,200,000 | ||
Electricity Derivative Transaction, Volume | 0 | 0 | ||
[1] | WGL has elected to offset the fair value of recognized derivative instruments against the right to reclaim or the obligation to return collateral for derivative instruments executed under the same master netting arrangement in accordance with ASC 815. All recognized derivative contracts and associated financial collateral subject to a master netting arrangement or similar that is eligible for offset under ASC 815 have been presented net in the balance sheet. | |||
[2] | Washington Gas did not have any derivative instruments outstanding that were designated as hedging instruments at December 31, 2014 or September 30, 2014. |
Derivative_and_Weather_Related4
Derivative and Weather Related Instruments (Gains and Losses) (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
WGL Holdings, Inc. | ||||
Gains and (Losses) on Derivative Instruments | ||||
Gains (Losses) On Derivative Instruments | $71.20 | ($137.70) | ||
WGL Holdings, Inc. | Operating Revenues Non Utility | ||||
Gains and (Losses) on Derivative Instruments | ||||
Recorded to income | 75.4 | -48.5 | ||
WGL Holdings, Inc. | Utility Cost Of Gas | ||||
Gains and (Losses) on Derivative Instruments | ||||
Recorded to income | 25.8 | -27.3 | ||
WGL Holdings, Inc. | Non Utility Cost Of Energy Related Sales | ||||
Gains and (Losses) on Derivative Instruments | ||||
Recorded to income | -49.6 | 16.3 | ||
WGL Holdings, Inc. | Other income-net | ||||
Gains and (Losses) on Derivative Instruments | ||||
Recorded to income | 0 | 0.1 | ||
WGL Holdings, Inc. | Gas Costs | ||||
Gains and (Losses) on Derivative Instruments | ||||
Recorded to regulatory assets/liabilities | 28.2 | -78.3 | ||
WGL Holdings, Inc. | Interest expense | ||||
Gains and (Losses) on Derivative Instruments | ||||
Recorded to income | -0.4 | 0 | ||
WGL Holdings, Inc. | Recorded to other comprehensive income | ||||
Gains and (Losses) on Derivative Instruments | ||||
Gains (Losses) On Derivative Instruments | -8.2 | [1] | 0 | [1] |
Washington Gas Light Company | ||||
Gains and (Losses) on Derivative Instruments | ||||
Gains (Losses) On Derivative Instruments | 54 | -105.6 | ||
Washington Gas Light Company | Operating Revenues Non Utility | ||||
Gains and (Losses) on Derivative Instruments | ||||
Recorded to income | 0 | 0 | ||
Washington Gas Light Company | Utility Cost Of Gas | ||||
Gains and (Losses) on Derivative Instruments | ||||
Recorded to income | 25.8 | -27.3 | ||
Washington Gas Light Company | Non Utility Cost Of Energy Related Sales | ||||
Gains and (Losses) on Derivative Instruments | ||||
Recorded to income | 0 | 0 | ||
Washington Gas Light Company | Other income-net | ||||
Gains and (Losses) on Derivative Instruments | ||||
Recorded to income | 0 | 0 | ||
Washington Gas Light Company | Gas Costs | ||||
Gains and (Losses) on Derivative Instruments | ||||
Recorded to regulatory assets/liabilities | 28.2 | -78.3 | ||
Washington Gas Light Company | Interest expense | ||||
Gains and (Losses) on Derivative Instruments | ||||
Recorded to income | 0 | 0 | ||
Washington Gas Light Company | Recorded to other comprehensive income | ||||
Gains and (Losses) on Derivative Instruments | ||||
Gains (Losses) On Derivative Instruments | $0 | [1] | $0 | [1] |
[1] | (a) Represents the effective portion of our cash flow hedge. |
Derivative_and_Weather_Related5
Derivative and Weather Related Instruments (Details 2) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | Counterparties |
WGL Energy Services | |
Concentration of Credit Risk | |
Obligation to counterparties | $0.70 |
Percentage Of Credit Exposure | 10.00% |
Number of Counterparties | 1 |
WGL Midstream | |
Concentration of Credit Risk | |
Obligation to counterparties | 15.2 |
Percentage Of Credit Exposure | 10.00% |
Number of Counterparties | 2 |
Washington Gas Light Company | |
Concentration of Credit Risk | |
Obligation to counterparties | $18.60 |
Percentage Of Credit Exposure | 10.00% |
Number of Counterparties | 2 |
Derivative_and_Weather_Related6
Derivative and Weather Related Instruments (Details 3) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 |
In Millions, unless otherwise specified | ||
WGL Holdings, Inc. | ||
Potential Collateral Requirements for Derivative Liabilities with Credit-risk-Contingent Features | ||
Derivative liabilities with credit-risk-contingent features | $59.40 | $28.80 |
Maximum potential collateral requirements | 41.7 | 16.5 |
Washington Gas Light Company | ||
Potential Collateral Requirements for Derivative Liabilities with Credit-risk-Contingent Features | ||
Derivative liabilities with credit-risk-contingent features | 15.3 | 20.6 |
Maximum potential collateral requirements | $6.70 | $16.10 |
Derivative_and_Weather_Related7
Derivative and Weather Related Instruments (Details 4) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
WGL Energy Services | ||
Gain (Loss) On Derivative Instruments Net Pretax [Abstract] | ||
Gain (losses) on weather related instruments, pretax | ($1.70) | ($1.10) |
Washington Gas Light Company | ||
Gain (Loss) On Derivative Instruments Net Pretax [Abstract] | ||
Gain (losses) on weather related instruments, pretax | $0 | $0 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 |
In Millions, unless otherwise specified | ||
WGL Holdings, Inc. | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Abstract] | ||
Assets | $143.50 | $72.60 |
Liabilities | -387.3 | -390.9 |
WGL Holdings, Inc. | Natural Gas Related Derivatives | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Abstract] | ||
Assets | 122.6 | 56.4 |
Liabilities | -353.5 | -368.2 |
WGL Holdings, Inc. | Electricity Related Derivatives | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Abstract] | ||
Assets | 20.9 | 16.2 |
Liabilities | -33.8 | -21 |
WGL Holdings, Inc. | Interest Rate Swap | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Abstract] | ||
Assets | 0 | 0 |
Liabilities | 0 | -1.7 |
WGL Holdings, Inc. | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Abstract] | ||
Assets | 0 | 0 |
Liabilities | 0 | 0 |
WGL Holdings, Inc. | Level 1 | Natural Gas Related Derivatives | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Abstract] | ||
Assets | 0 | 0 |
Liabilities | 0 | 0 |
WGL Holdings, Inc. | Level 1 | Electricity Related Derivatives | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Abstract] | ||
Assets | 0 | 0 |
Liabilities | 0 | 0 |
WGL Holdings, Inc. | Level 1 | Interest Rate Swap | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Abstract] | ||
Assets | 0 | 0 |
Liabilities | 0 | 0 |
WGL Holdings, Inc. | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Abstract] | ||
Assets | 84.6 | 23 |
Liabilities | -64.3 | -41.6 |
WGL Holdings, Inc. | Level 2 | Natural Gas Related Derivatives | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Abstract] | ||
Assets | 82 | 22.7 |
Liabilities | -60.3 | -39.8 |
WGL Holdings, Inc. | Level 2 | Electricity Related Derivatives | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Abstract] | ||
Assets | 2.6 | 0.3 |
Liabilities | -4 | -0.1 |
WGL Holdings, Inc. | Level 2 | Interest Rate Swap | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Abstract] | ||
Assets | 0 | 0 |
Liabilities | 0 | -1.7 |
WGL Holdings, Inc. | Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Abstract] | ||
Assets | 58.9 | 49.6 |
Liabilities | -323 | -349.3 |
WGL Holdings, Inc. | Level 3 | Natural Gas Related Derivatives | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Abstract] | ||
Assets | 40.6 | 33.7 |
Liabilities | -293.2 | -328.4 |
WGL Holdings, Inc. | Level 3 | Electricity Related Derivatives | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Abstract] | ||
Assets | 18.3 | 15.9 |
Liabilities | -29.8 | -20.9 |
WGL Holdings, Inc. | Level 3 | Interest Rate Swap | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Abstract] | ||
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Washington Gas Light Company | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Abstract] | ||
Assets | 46.9 | 26.2 |
Liabilities | -271.2 | -308.4 |
Washington Gas Light Company | Natural Gas Related Derivatives | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Abstract] | ||
Assets | 46.9 | 26.2 |
Liabilities | -271.2 | -308.4 |
Washington Gas Light Company | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Abstract] | ||
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Washington Gas Light Company | Level 1 | Natural Gas Related Derivatives | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Abstract] | ||
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Washington Gas Light Company | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Abstract] | ||
Assets | 35.5 | 13.5 |
Liabilities | -25 | -25.1 |
Washington Gas Light Company | Level 2 | Natural Gas Related Derivatives | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Abstract] | ||
Assets | 35.5 | 13.5 |
Liabilities | -25 | -25.1 |
Washington Gas Light Company | Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Abstract] | ||
Assets | 11.4 | 12.7 |
Liabilities | -246.2 | -283.3 |
Washington Gas Light Company | Level 3 | Natural Gas Related Derivatives | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Abstract] | ||
Assets | 11.4 | 12.7 |
Liabilities | ($246.20) | ($283.30) |
Fair_Value_Measurements_Reconc
Fair Value Measurements (Reconciliation with Level 3 Inputs) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
WGL Holdings, Inc. | ||
Reconciliation of Fair Value Measurements Using Significant Level 3 Inputs | ||
Balance at beginning of period | ($299.70) | ($151.70) |
Realized and unrealized gains (losses) | ||
Recorded to income | 9.4 | -54.5 |
Recorded to regulatory assets - gas costs | 13.6 | -72 |
Transfers out of level 3 | -1.7 | 0 |
Purchases | 3.2 | 1.4 |
Settlements | 11.1 | 11.8 |
Balance at end of period | -264.1 | -265 |
WGL Holdings, Inc. | Natural Gas Related Derivatives | ||
Reconciliation of Fair Value Measurements Using Significant Level 3 Inputs | ||
Balance at beginning of period | -294.7 | -155.2 |
Realized and unrealized gains (losses) | ||
Recorded to income | 20.3 | -46.7 |
Recorded to regulatory assets - gas costs | 13.6 | -72 |
Transfers out of level 3 | -1.7 | 0 |
Purchases | 0 | 0 |
Settlements | 9.9 | 9.4 |
Balance at end of period | -252.6 | -264.5 |
WGL Holdings, Inc. | Electricity Related Derivatives | ||
Reconciliation of Fair Value Measurements Using Significant Level 3 Inputs | ||
Balance at beginning of period | -5 | 2.4 |
Realized and unrealized gains (losses) | ||
Recorded to income | -10.9 | -7.9 |
Recorded to regulatory assets - gas costs | 0 | 0 |
Transfers out of level 3 | 0 | 0 |
Purchases | 3.2 | 1.4 |
Settlements | 1.2 | 2.4 |
Balance at end of period | -11.5 | -1.7 |
WGL Holdings, Inc. | Warrant | ||
Reconciliation of Fair Value Measurements Using Significant Level 3 Inputs | ||
Balance at beginning of period | 0 | 1.1 |
Realized and unrealized gains (losses) | ||
Recorded to income | 0 | 0.1 |
Recorded to regulatory assets - gas costs | 0 | 0 |
Transfers out of level 3 | 0 | 0 |
Purchases | 0 | 0 |
Settlements | 0 | 0 |
Balance at end of period | 0 | 1.2 |
Washington Gas Light Company | Natural Gas Related Derivatives | ||
Reconciliation of Fair Value Measurements Using Significant Level 3 Inputs | ||
Balance at beginning of period | -270.6 | -133.6 |
Realized and unrealized gains (losses) | ||
Recorded to income | 14.7 | -23.4 |
Recorded to regulatory assets - gas costs | 13.6 | -72 |
Transfers out of level 3 | -1.7 | 0 |
Settlements | 9.2 | 9 |
Balance at end of period | ($234.80) | ($220) |
Fair_Value_Measurements_Realiz
Fair Value Measurements (Realized and Unrealized Gains and Losses with Level 3 Measurements) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
WGL Holdings, Inc. | ||
Realized and Unrealized Gains (Losses) Recorded to Income for Level 3 Measurements | ||
Recorded to income | $9.40 | ($54.50) |
Unrealized Gains (Losses) Recorded for Level 3 Measurements | ||
Recorded to regulatory assets - gas costs | 18.5 | -71.1 |
Total | 33.4 | -120.8 |
WGL Holdings, Inc. | Natural Gas Related Derivatives | ||
Realized and Unrealized Gains (Losses) Recorded to Income for Level 3 Measurements | ||
Recorded to income | 20.3 | -46.7 |
Unrealized Gains (Losses) Recorded for Level 3 Measurements | ||
Recorded to regulatory assets - gas costs | 18.5 | -71.1 |
Total | 39.7 | -116.9 |
WGL Holdings, Inc. | Electricity Related Derivatives | ||
Realized and Unrealized Gains (Losses) Recorded to Income for Level 3 Measurements | ||
Recorded to income | -10.9 | -7.9 |
Unrealized Gains (Losses) Recorded for Level 3 Measurements | ||
Recorded to regulatory assets - gas costs | 0 | 0 |
Total | -6.3 | -4 |
WGL Holdings, Inc. | Warrant | ||
Realized and Unrealized Gains (Losses) Recorded to Income for Level 3 Measurements | ||
Recorded to income | 0 | 0.1 |
Unrealized Gains (Losses) Recorded for Level 3 Measurements | ||
Recorded to regulatory assets - gas costs | 0 | 0 |
Total | 0 | 0.1 |
WGL Holdings, Inc. | Operating Revenues Non Utility | ||
Realized and Unrealized Gains (Losses) Recorded to Income for Level 3 Measurements | ||
Recorded to income | 31.3 | -35.8 |
Unrealized Gains (Losses) Recorded for Level 3 Measurements | ||
Recorded to income | 32.7 | -30.2 |
WGL Holdings, Inc. | Operating Revenues Non Utility | Natural Gas Related Derivatives | ||
Realized and Unrealized Gains (Losses) Recorded to Income for Level 3 Measurements | ||
Recorded to income | 10.5 | -25.8 |
Unrealized Gains (Losses) Recorded for Level 3 Measurements | ||
Recorded to income | 11.9 | -25.2 |
WGL Holdings, Inc. | Operating Revenues Non Utility | Electricity Related Derivatives | ||
Realized and Unrealized Gains (Losses) Recorded to Income for Level 3 Measurements | ||
Recorded to income | 20.8 | -10 |
Unrealized Gains (Losses) Recorded for Level 3 Measurements | ||
Recorded to income | 20.8 | -5 |
WGL Holdings, Inc. | Operating Revenues Non Utility | Warrant | ||
Realized and Unrealized Gains (Losses) Recorded to Income for Level 3 Measurements | ||
Recorded to income | 0 | 0 |
Unrealized Gains (Losses) Recorded for Level 3 Measurements | ||
Recorded to income | 0 | 0 |
WGL Holdings, Inc. | Utility Cost Of Gas | ||
Realized and Unrealized Gains (Losses) Recorded to Income for Level 3 Measurements | ||
Recorded to income | 14.7 | -23.4 |
Unrealized Gains (Losses) Recorded for Level 3 Measurements | ||
Recorded to income | 14.8 | -22.9 |
WGL Holdings, Inc. | Utility Cost Of Gas | Natural Gas Related Derivatives | ||
Realized and Unrealized Gains (Losses) Recorded to Income for Level 3 Measurements | ||
Recorded to income | 14.7 | -23.4 |
Unrealized Gains (Losses) Recorded for Level 3 Measurements | ||
Recorded to income | 14.8 | -22.9 |
WGL Holdings, Inc. | Utility Cost Of Gas | Electricity Related Derivatives | ||
Realized and Unrealized Gains (Losses) Recorded to Income for Level 3 Measurements | ||
Recorded to income | 0 | 0 |
Unrealized Gains (Losses) Recorded for Level 3 Measurements | ||
Recorded to income | 0 | 0 |
WGL Holdings, Inc. | Utility Cost Of Gas | Warrant | ||
Realized and Unrealized Gains (Losses) Recorded to Income for Level 3 Measurements | ||
Recorded to income | 0 | 0 |
Unrealized Gains (Losses) Recorded for Level 3 Measurements | ||
Recorded to income | 0 | 0 |
WGL Holdings, Inc. | Non Utility Cost Of Energy Related Sales | ||
Realized and Unrealized Gains (Losses) Recorded to Income for Level 3 Measurements | ||
Recorded to income | -36.6 | 4.6 |
Unrealized Gains (Losses) Recorded for Level 3 Measurements | ||
Recorded to income | -32.6 | 3.3 |
WGL Holdings, Inc. | Non Utility Cost Of Energy Related Sales | Natural Gas Related Derivatives | ||
Realized and Unrealized Gains (Losses) Recorded to Income for Level 3 Measurements | ||
Recorded to income | -4.9 | 2.5 |
Unrealized Gains (Losses) Recorded for Level 3 Measurements | ||
Recorded to income | -5.5 | 2.3 |
WGL Holdings, Inc. | Non Utility Cost Of Energy Related Sales | Electricity Related Derivatives | ||
Realized and Unrealized Gains (Losses) Recorded to Income for Level 3 Measurements | ||
Recorded to income | -31.7 | 2.1 |
Unrealized Gains (Losses) Recorded for Level 3 Measurements | ||
Recorded to income | -27.1 | 1 |
WGL Holdings, Inc. | Non Utility Cost Of Energy Related Sales | Warrant | ||
Realized and Unrealized Gains (Losses) Recorded to Income for Level 3 Measurements | ||
Recorded to income | 0 | 0 |
Unrealized Gains (Losses) Recorded for Level 3 Measurements | ||
Recorded to income | 0 | 0 |
WGL Holdings, Inc. | Other income-net | ||
Realized and Unrealized Gains (Losses) Recorded to Income for Level 3 Measurements | ||
Recorded to income | 0 | 0.1 |
Unrealized Gains (Losses) Recorded for Level 3 Measurements | ||
Recorded to income | 0 | 0.1 |
WGL Holdings, Inc. | Other income-net | Natural Gas Related Derivatives | ||
Realized and Unrealized Gains (Losses) Recorded to Income for Level 3 Measurements | ||
Recorded to income | 0 | 0 |
Unrealized Gains (Losses) Recorded for Level 3 Measurements | ||
Recorded to income | 0 | 0 |
WGL Holdings, Inc. | Other income-net | Electricity Related Derivatives | ||
Realized and Unrealized Gains (Losses) Recorded to Income for Level 3 Measurements | ||
Recorded to income | 0 | 0 |
Unrealized Gains (Losses) Recorded for Level 3 Measurements | ||
Recorded to income | 0 | 0 |
WGL Holdings, Inc. | Other income-net | Warrant | ||
Realized and Unrealized Gains (Losses) Recorded to Income for Level 3 Measurements | ||
Recorded to income | 0 | 0.1 |
Unrealized Gains (Losses) Recorded for Level 3 Measurements | ||
Recorded to income | 0 | 0.1 |
Washington Gas Light Company | Natural Gas Related Derivatives | ||
Realized and Unrealized Gains (Losses) Recorded to Income for Level 3 Measurements | ||
Recorded to income | 14.7 | -23.4 |
Unrealized Gains (Losses) Recorded for Level 3 Measurements | ||
Recorded to regulatory assets - gas costs | 18.5 | -71.1 |
Total | 33.3 | -94 |
Washington Gas Light Company | Utility Cost Of Gas | Natural Gas Related Derivatives | ||
Realized and Unrealized Gains (Losses) Recorded to Income for Level 3 Measurements | ||
Recorded to income | 14.7 | -23.4 |
Unrealized Gains (Losses) Recorded for Level 3 Measurements | ||
Recorded to income | $14.80 | ($22.90) |
Fair_Value_Measurements_Longte
Fair Value Measurements (Long-term Debt) (Details) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 | ||
WGL Holdings, Inc. | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Commercial Paper | $350,000,000 | $453,500,000 | ||
Washington Gas Light Company | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Commercial Paper | 138,000,000 | 89,000,000 | ||
Carrying Amount | WGL Holdings, Inc. | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Money Market Funds | 11,900,000 | [1] | 9,700,000 | [1] |
Other Short Term Investments | 400,000 | [1] | 0 | [1] |
Commercial Paper | 350,000,000 | [2] | 453,500,000 | [2] |
Long-term debt | 975,600,000 | [3] | 679,200,000 | [3] |
Carrying Amount | Washington Gas Light Company | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Money Market Funds | 4,600,000 | [1] | 4,300,000 | [1] |
Other Short Term Investments | 400,000 | [1] | 0 | [1] |
Commercial Paper | 138,000,000 | [2] | 89,000,000 | [2] |
Long-term debt | 727,200,000 | [3] | 679,200,000 | [3] |
Fair Value | WGL Holdings, Inc. | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Money Market Funds | 11,900,000 | [1] | 9,700,000 | [1] |
Other Short Term Investments | 400,000 | [1] | 0 | [1] |
Commercial Paper | 350,000,000 | [2] | 453,500,000 | [2] |
Long-term debt | 1,116,700,000 | [3] | 809,300,000 | [3] |
Fair Value | Washington Gas Light Company | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Money Market Funds | 4,600,000 | [1] | 4,300,000 | [1] |
Other Short Term Investments | 400,000 | [1] | 0 | [1] |
Commercial Paper | 138,000,000 | [2] | 89,000,000 | [2] |
Long-term debt | $870,300,000 | [3] | $809,300,000 | [3] |
[1] | Balance is located in cash and cash equivalents in the accompanying balance sheets. These amounts may be offset by outstanding checks. | |||
[2] | Balance is located in notes payable in the accompanying balance sheets. | |||
[3] | Less current maturities and unamortized discounts. |
Fair_Value_Measurements_Quanti
Fair Value Measurements (Quantitative information WGLH) (Details) (WGL Holdings, Inc., USD $) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | |
Net Fair Value | -264,100,000 | -299,700,000 | ($265,000,000) | ($151,700,000) |
Natural Gas Related Derivatives | ||||
Net Fair Value | -252,600,000 | -294,700,000 | -264,500,000 | -155,200,000 |
Natural Gas Related Derivatives | Discounted Cash Flow | Maximum | Natural Gas Basis Price | ||||
Input Price | 3.618 | 6.154 | ||
Natural Gas Related Derivatives | Discounted Cash Flow | Minimum | Natural Gas Basis Price | ||||
Input Price | -1.729 | -2.101 | ||
Natural Gas Related Derivatives | Option Model | Maximum | Natural Gas Basis Price | ||||
Input Price | 2.873 | 6.154 | ||
Natural Gas Related Derivatives | Option Model | Maximum | Annualized Volatility Price | ||||
Option Volatility Percentage | 589.60% | 589.60% | ||
Natural Gas Related Derivatives | Option Model | Minimum | Natural Gas Basis Price | ||||
Input Price | -1 | -1.675 | ||
Natural Gas Related Derivatives | Option Model | Minimum | Annualized Volatility Price | ||||
Option Volatility Percentage | 30.50% | 30.90% | ||
Electricity Related Derivatives | ||||
Net Fair Value | -11,500,000 | -5,000,000 | -1,700,000 | 2,400,000 |
Electricity Related Derivatives | Discounted Cash Flow | Maximum | Electricity Congestion Price | ||||
Input Price | 71.05 | 90.95 | ||
Electricity Related Derivatives | Discounted Cash Flow | Minimum | Electricity Congestion Price | ||||
Input Price | -3.103 | -2.85 |
Fair_Value_Measurements_Quanti1
Fair Value Measurements (Quantitative information WGL) (Details) (Washington Gas Light Company, Natural Gas Related Derivatives, USD $) | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 |
Net Fair Value | ($234,800,000) | ($270,600,000) | ($220,000,000) | ($133,600,000) |
Discounted Cash Flow | Maximum | Natural Gas Basis Price | ||||
Input Price | 3.1 | 6.154 | ||
Discounted Cash Flow | Minimum | Natural Gas Basis Price | ||||
Input Price | ($1.73) | ($2.10) |
Fair_Value_Measurements_Narrat
Fair Value Measurements (Narrative) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
WGL Holdings, Inc. | ||
Impairment loss | $770 | |
Investment impairment | 5,625 | |
Washington Gas Light Company | ||
Impairment loss | 0 | 770 |
Washington Gas Resources | American Solar Direct Holdings Inc. (ASDHI) | ||
Investment impairment | $5,600 | $0 |
Operating_Segment_Narrative_De
Operating Segment (Narrative) (Details) | 3 Months Ended |
Dec. 31, 2014 | |
Segment Reporting [Abstract] | |
Number Of Operating Segments | 4 |
Operating_Segment_Details
Operating Segment (Details) (USD $) | 3 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | ||
Regulated utility | |||||
Operating Segment Financial Information [Line Items] | |||||
Operating Revenues | $387,193 | [1] | $390,415 | [1] | |
Depreciation and amortization | 26,952 | 25,369 | |||
Equity in earnings of unconsolidated affiliates | 0 | 0 | |||
EBIT | 114,627 | 65,453 | |||
Total Assets | 4,200,780 | 3,828,709 | |||
Capital Expenditures | 89,603 | 55,092 | |||
Equity Method Investments | 0 | 0 | |||
Retail energy-marketing | |||||
Operating Segment Financial Information [Line Items] | |||||
Operating Revenues | 330,489 | [1] | 322,938 | [1] | |
Depreciation and amortization | 167 | 174 | |||
Equity in earnings of unconsolidated affiliates | 0 | 0 | |||
EBIT | -15,895 | 5,290 | |||
Total Assets | 436,204 | 418,633 | |||
Capital Expenditures | 34 | 75 | |||
Equity Method Investments | 0 | 0 | |||
Commercial energy systems | |||||
Operating Segment Financial Information [Line Items] | |||||
Operating Revenues | 9,539 | [1] | 4,717 | [1] | |
Depreciation and amortization | 2,235 | 1,093 | |||
Equity in earnings of unconsolidated affiliates | 577 | 284 | |||
EBIT | 259 | -596 | |||
Total Assets | 544,682 | 380,241 | |||
Capital Expenditures | 43,317 | 3,138 | |||
Equity Method Investments | 66,100 | 66,526 | |||
Midstream energy services | |||||
Operating Segment Financial Information [Line Items] | |||||
Operating Revenues | 28,092 | [1] | -33,173 | [1] | |
Depreciation and amortization | 31 | 31 | |||
Equity in earnings of unconsolidated affiliates | 536 | 206 | |||
EBIT | 26,771 | -34,209 | |||
Total Assets | 249,789 | 171,420 | |||
Capital Expenditures | 0 | 0 | |||
Equity Method Investments | 36,167 | 10,813 | |||
Other activities | |||||
Operating Segment Financial Information [Line Items] | |||||
Operating Revenues | 0 | [1] | 0 | [1] | |
Depreciation and amortization | 0 | 0 | |||
Equity in earnings of unconsolidated affiliates | 31 | 0 | |||
EBIT | -7,099 | -2,661 | |||
Total Assets | 409,123 | 299,769 | |||
Capital Expenditures | 0 | 0 | |||
Equity Method Investments | 48 | 413 | |||
Eliminations | |||||
Operating Segment Financial Information [Line Items] | |||||
Operating Revenues | -6,076 | [1],[2] | -4,600 | [1],[2] | |
Depreciation and amortization | -25 | [2] | -77 | [2] | |
Equity in earnings of unconsolidated affiliates | 0 | [2] | 0 | [2] | |
EBIT | -32 | [2] | 144 | [2] | |
Total Assets | -692,486 | [2] | -467,246 | [2] | |
Capital Expenditures | 0 | [2] | 0 | [2] | |
Equity Method Investments | 0 | [2] | 0 | [2] | |
Total consolidated | |||||
Operating Segment Financial Information [Line Items] | |||||
Operating Revenues | 749,237 | [1] | 680,297 | [1] | |
Depreciation and amortization | 29,360 | 26,590 | |||
Equity in earnings of unconsolidated affiliates | 1,144 | 490 | |||
EBIT | 118,631 | 33,421 | |||
Total Assets | 5,148,092 | 4,631,526 | |||
Capital Expenditures | 132,954 | 58,305 | |||
Equity Method Investments | 102,315 | 77,752 | |||
WGL Holdings, Inc. | |||||
Operating Segment Financial Information [Line Items] | |||||
Operating Revenues | 749,237 | 680,297 | |||
Depreciation and amortization | 29,360 | 26,590 | |||
Equity in earnings of unconsolidated affiliates | 1,144 | 490 | |||
Total Assets | 5,148,092 | 4,856,499 | |||
Operating Expenses: | |||||
Total Operating Expenses | 627,395 | 647,585 | |||
OPERATING INCOME (LOSS) | 121,842 | 32,712 | |||
Other income (expense) - net | ($4,355) | $219 | |||
[1] | B Operating revenues are reported gross of revenue taxes. Revenue taxes of both the regulated utility and the retail energy-marketing segments include gross receipt taxes. Revenue taxes of the regulated utility segment also include PSC fees, franchise fees and energy taxes. Operating revenue amounts in the "Eliminations" row represent total intersegment revenues associated with sales from the regulated utility segment to the retail energy-marketing segment. Midstream Energy Services' cost of energy related sales is netted with its gross revenues. | ||||
[2] | Intersegment eliminations include a timing difference between Commercial Energy Systemsb recognition of revenue for the sale of Solar Renewable Energy Credits (SRECs) to Retail Energy-Marketing and Retail Energy-Marketingbs recognition of the associated expense. Retail Energy-Marketing has recorded a portion of the SRECbs purchased as inventory to be used in future periods at which time they will be expensed. |
Operating_Segment_Details_2
Operating Segment (Details 2) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Reconciliation from EBIT to Net Income Applicable to Common Stock [Line Items] | ||
Net Income (Loss) applicable to common stock | $63,888 | $18,629 |
Total consolidated | ||
Reconciliation from EBIT to Net Income Applicable to Common Stock [Line Items] | ||
Total consolidated EBIT | 118,631 | 33,421 |
Interest expense | 12,310 | 8,992 |
Income before income taxes | 106,321 | 24,429 |
Income tax expense (benefit) | 42,103 | 5,470 |
Net income (loss) | 64,218 | 18,959 |
Dividends on Washington Gas preferred stock | 330 | 330 |
Net Income (Loss) applicable to common stock | $63,888 | $18,629 |
Other_Investments_Narrative_De
Other Investments Narrative (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended |
Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data [LineItems] | |||
Investments in direct financing leases, capital leases | $21,400,000 | ||
WGL Holdings, Inc. | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [LineItems] | |||
Assets | 143,500,000 | 72,600,000 | |
Investments in unconsolidated affiliates | 102,315,000 | 100,528,000 | |
Investments in direct financing leases, capital leases | 17,710,000 | 18,159,000 | |
Investment impairment | 5,625,000 | ||
WGL Holdings, Inc. | Constitution | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [LineItems] | |||
Estimated Investment In Constitution | 79,000,000 | ||
Equity Method Investment Ownership Percentage | 10.00% | ||
Investments in unconsolidated affiliates | 24,000,000 | ||
WGL Holdings, Inc. | Meade | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [LineItems] | |||
Equity Method Investment Ownership Percentage | 55.00% | ||
Estimated Investment in Meade | 410,000,000 | ||
Investments in unconsolidated affiliates | 10,400,000 | ||
Guarantee Obligations - Maximum Exposure | 59,400,000 | ||
Pipeline length in miles | 177 | ||
Transportation and delivery capacity in dekatherms per day | 1,700,000 | ||
WGL Holdings, Inc. | Crab Run | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [LineItems] | |||
Investments in unconsolidated affiliates | 100,000 | ||
Willams Partners L.P. | Constitution | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [LineItems] | |||
Equity Method Investment Ownership Percentage | 41.00% | ||
Cabot Oil And Gas Corporation | Constitution | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [LineItems] | |||
Equity Method Investment Ownership Percentage | 25.00% | ||
Piedmont Natural Gas | Constitution | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [LineItems] | |||
Equity Method Investment Ownership Percentage | 24.00% | ||
COG Holdings LLC | Meade | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [LineItems] | |||
Equity Method Investment Ownership Percentage | 20.00% | ||
Vega Midstream MPC LLC | Meade | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [LineItems] | |||
Equity Method Investment Ownership Percentage | 15.00% | ||
River Road Interests LLC | Meade | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [LineItems] | |||
Equity Method Investment Ownership Percentage | 10.00% | ||
Washington Gas Resources Corp. | American Solar Direct Holdings Inc. (ASDHI) | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [LineItems] | |||
Cost Method Investments | 0 | 5,600,000 | |
Investment impairment | 5,600,000 | 0 | |
WGSW | ASD Solar, LP | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [LineItems] | |||
Equity Method Investment Difference Between Carrying Amount And Underlying Equity | 35,900,000 | ||
Investments in unconsolidated affiliates | 66,100,000 | ||
WGSW | Sun Edison/Nextility | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [LineItems] | |||
Investments in direct financing leases, capital leases | 19,300,000 | 19,900,000 | |
Net Investment in Direct Financing Leases, Current | 1,600,000 | 1,700,000 | |
Washington Gas Resources | American Solar Direct Holdings Inc. (ASDHI) | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [LineItems] | |||
Investment impairment | $5,600,000 | $0 |
Other_Investments_Financing_Le
Other Investments Financing Leases Table (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Capital Leases Net Investment In Direct Financing Leases [Abstract] | |
2015 | $1.60 |
2016 | 2 |
2017 | 1.9 |
2018 | 1.8 |
2019 | 1.7 |
Thereafter | 12.4 |
Total | 21.4 |
Direct Financing Leases - Unearned Income | 10.1 |
Direct Financing Leases - Residual Value | 5.1 |
Direct Financing Leases - Initial Direct Costs | 0.7 |
Direct Financing Leases - Tax Credits | $2.90 |
Other_Investments_Balance_Shee
Other Investments Balance Sheet Location Table (Details) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 |
Assets [Abstract] | ||
Investments in direct financing leases, capital leases | $21,400,000 | |
VIEs | ||
Assets [Abstract] | ||
Investments in unconsolidated affiliates | 76,500,000 | 72,600,000 |
Investments in direct financing leases, capital leases | 17,700,000 | 18,200,000 |
Accounts Receivable | 1,600,000 | 1,700,000 |
Total assets | 95,800,000 | 92,500,000 |
Non VIEs | ||
Assets [Abstract] | ||
Investments in unconsolidated affiliates | 25,800,000 | 27,900,000 |
Investments in direct financing leases, capital leases | 0 | 0 |
Accounts Receivable | 0 | 0 |
Total assets | 25,800,000 | 27,900,000 |
Total | ||
Assets [Abstract] | ||
Investments in unconsolidated affiliates | 102,300,000 | 100,500,000 |
Investments in direct financing leases, capital leases | 17,700,000 | 18,200,000 |
Accounts Receivable | 1,600,000 | 1,700,000 |
Total assets | $121,600,000 | $120,400,000 |
Other_Investments_Income_State
Other Investments Income Statement Location Table (Details) (USD $) | 3 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
VIEs | ||
Net Income Loss [Abstract] | ||
Equity in earnings of unconsolidated affiliates | $600,000 | $300,000 |
Depreciation and amortization | 100,000 | 100,000 |
Other income (expenses) - net | 600,000 | 900,000 |
Net income (loss) | 1,100,000 | 1,100,000 |
Non VIEs | ||
Net Income Loss [Abstract] | ||
Equity in earnings of unconsolidated affiliates | 500,000 | 200,000 |
Depreciation and amortization | 0 | 0 |
Other income (expenses) - net | -5,600,000 | 0 |
Net income (loss) | -5,100,000 | 200,000 |
Total | ||
Net Income Loss [Abstract] | ||
Equity in earnings of unconsolidated affiliates | 1,100,000 | 500,000 |
Depreciation and amortization | 100,000 | 100,000 |
Other income (expenses) - net | -5,000,000 | 900,000 |
Net income (loss) | ($4,000,000) | $1,300,000 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | Dec. 31, 2014 | Sep. 30, 2014 |
WGL Energy Services | ||
Related Party Transaction [Line Items] | ||
Accounts Receivable, Related Parties | $24,709 | |
Accounts Payable, Related Parties | 3,200,000 | |
Washington Gas Light Company | ||
Related Party Transaction [Line Items] | ||
Receivables from associated companies | 3,600,000 | 4,800,000 |
Payables to associated companies | 67,700,000 | 54,700,000 |
Receivables purchased from related party | $19,400,000 | $7,700,000 |
Related_Party_Transactions_Det1
Related Party Transactions (Details 2) (Washington Gas Light Company, USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Washington Gas Light Company | ||
Related Party Transaction [Line Items] | ||
Related Party Transaction, Revenues from Transactions with Related Party | $5.50 | $3.80 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (WGL Holdings, Inc., USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
WGL Energy Services | |
Commitments And Contingencies [Line Items] | |
Recorded Unconditional Purchase Obligation | 227.2 |
WGL Midstream | |
Commitments And Contingencies [Line Items] | |
Recorded Unconditional Purchase Obligation | 306.3 |
Other Non Affiliated Parties | |
Commitments And Contingencies [Line Items] | |
Recorded Unconditional Purchase Obligation | 2.1 |
Other Non-Utility | |
Commitments And Contingencies [Line Items] | |
Recorded Unconditional Purchase Obligation | 8.5 |
GAIL Global (USA) LNG, LLC | |
Commitments And Contingencies [Line Items] | |
Gas Sale and Purchase and Capacity Agreement Terms | 20 |
GAIL Global (USA) LNG, LLC | Minimum | |
Commitments And Contingencies [Line Items] | |
Transportation and delivery capacity in dekatherms per day | 340,000 |
GAIL Global (USA) LNG, LLC | Maximum | |
Commitments And Contingencies [Line Items] | |
Transportation and delivery capacity in dekatherms per day | 430,000 |
Commitments_and_Contingencies_2
Commitments and Contingencies Table (Details) (USD $) | Dec. 31, 2014 | |
In Millions, unless otherwise specified | ||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
Unrecorded Unconditional Purchase Obligation, Due Within One Year | $553.90 | |
Unrecorded Unconditional Purchase Obligation, Due Within Two Years | 622.5 | |
Unrecorded Unconditional Purchase Obligation, Due Within Three Years | 455 | |
Unrecorded Unconditional Purchase Obligation, Due Within Four Years | 1,259 | |
Unrecorded Unconditional Purchase Obligation, Due Within Five Years | 1,370.90 | |
Unrecorded Unconditional Purchase Obligation, Due After Five Years | 23,274.80 | |
Unrecorded Unconditional Purchase Obligation Balance Sheet Amount | 27,536.10 | |
Gas Purchase Commitments [Member] | WGL Midstream | ||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
Unrecorded Unconditional Purchase Obligation, Due Within One Year | 29.3 | [1] |
Unrecorded Unconditional Purchase Obligation, Due Within Two Years | 190.8 | [1] |
Unrecorded Unconditional Purchase Obligation, Due Within Three Years | 310 | [1] |
Unrecorded Unconditional Purchase Obligation, Due Within Four Years | 1,222.10 | [1] |
Unrecorded Unconditional Purchase Obligation, Due Within Five Years | 1,345.60 | [1] |
Unrecorded Unconditional Purchase Obligation, Due After Five Years | 23,012.60 | [1] |
Unrecorded Unconditional Purchase Obligation Balance Sheet Amount | 26,110.40 | [1] |
Gas Purchase Commitments [Member] | WGL Energy Services | ||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
Unrecorded Unconditional Purchase Obligation, Due Within One Year | 128.3 | [2] |
Unrecorded Unconditional Purchase Obligation, Due Within Two Years | 74.8 | [2] |
Unrecorded Unconditional Purchase Obligation, Due Within Three Years | 21.4 | [2] |
Unrecorded Unconditional Purchase Obligation, Due Within Four Years | 0.5 | [2] |
Unrecorded Unconditional Purchase Obligation, Due Within Five Years | 0 | [2] |
Unrecorded Unconditional Purchase Obligation, Due After Five Years | 0 | [2] |
Unrecorded Unconditional Purchase Obligation Balance Sheet Amount | 225 | [2] |
Gas Purchase Commitments [Member] | Washington Gas Light Company | ||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
Unrecorded Unconditional Purchase Obligation, Due Within One Year | 161.3 | [3] |
Unrecorded Unconditional Purchase Obligation, Due Within Two Years | 393.3 | [3] |
Unrecorded Unconditional Purchase Obligation, Due Within Three Years | 526.1 | [3] |
Unrecorded Unconditional Purchase Obligation, Due Within Four Years | 538.6 | [3] |
Unrecorded Unconditional Purchase Obligation, Due Within Five Years | 541.3 | [3] |
Unrecorded Unconditional Purchase Obligation, Due After Five Years | 6,285.20 | [3] |
Unrecorded Unconditional Purchase Obligation Balance Sheet Amount | 8,445.80 | [3] |
Pipeline Contracts [Member] | WGL Midstream | ||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
Unrecorded Unconditional Purchase Obligation, Due Within One Year | 13.9 | [4] |
Unrecorded Unconditional Purchase Obligation, Due Within Two Years | 19.2 | [4] |
Unrecorded Unconditional Purchase Obligation, Due Within Three Years | 17.7 | [4] |
Unrecorded Unconditional Purchase Obligation, Due Within Four Years | 26.4 | [4] |
Unrecorded Unconditional Purchase Obligation, Due Within Five Years | 24.6 | [4] |
Unrecorded Unconditional Purchase Obligation, Due After Five Years | 260.9 | [4] |
Unrecorded Unconditional Purchase Obligation Balance Sheet Amount | 362.7 | [4] |
Pipeline Contracts [Member] | WGL Energy Services | ||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
Unrecorded Unconditional Purchase Obligation, Due Within One Year | 2.4 | [5] |
Unrecorded Unconditional Purchase Obligation, Due Within Two Years | 0.6 | [5] |
Unrecorded Unconditional Purchase Obligation, Due Within Three Years | 0.6 | [5] |
Unrecorded Unconditional Purchase Obligation, Due Within Four Years | 0.6 | [5] |
Unrecorded Unconditional Purchase Obligation, Due Within Five Years | 0.6 | [5] |
Unrecorded Unconditional Purchase Obligation, Due After Five Years | 1.3 | [5] |
Unrecorded Unconditional Purchase Obligation Balance Sheet Amount | 6.1 | [5] |
Pipeline Contracts [Member] | Washington Gas Light Company | ||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
Unrecorded Unconditional Purchase Obligation, Due Within One Year | 197.1 | [6] |
Unrecorded Unconditional Purchase Obligation, Due Within Two Years | 218.7 | [6] |
Unrecorded Unconditional Purchase Obligation, Due Within Three Years | 210.5 | [6] |
Unrecorded Unconditional Purchase Obligation, Due Within Four Years | 211.3 | [6] |
Unrecorded Unconditional Purchase Obligation, Due Within Five Years | 202.7 | [6] |
Unrecorded Unconditional Purchase Obligation, Due After Five Years | 1,172.60 | [6] |
Unrecorded Unconditional Purchase Obligation Balance Sheet Amount | 2,212.90 | [6] |
Electric Purchase Commitments [Member] | WGL Energy Services | ||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
Unrecorded Unconditional Purchase Obligation, Due Within One Year | 380 | [7] |
Unrecorded Unconditional Purchase Obligation, Due Within Two Years | 337.1 | [7] |
Unrecorded Unconditional Purchase Obligation, Due Within Three Years | 105.3 | [7] |
Unrecorded Unconditional Purchase Obligation, Due Within Four Years | 9.4 | [7] |
Unrecorded Unconditional Purchase Obligation, Due Within Five Years | 0.1 | [7] |
Unrecorded Unconditional Purchase Obligation, Due After Five Years | 0 | [7] |
Unrecorded Unconditional Purchase Obligation Balance Sheet Amount | 831.9 | [7] |
Footnote Details [Abstract] | ||
Commitments Realted To Renewable Energy Credits | $23.80 | |
[1] | Includes short-term commitments to purchase fixed volumes of natural gas, as well as long-term gas purchase commitments that contain fixed volume purchase requirements. Cost estimates are based on forward market prices for purchases under these purchase commitments. | |
[2] | Represents fixed price commitments with city gate equivalent deliveries. | |
[3] | The contracts referenced above are estimated based on market prices at December 31, 2014. | |
[4] | Represents minimum payments for natural gas transportation and storage contracts that have expiration dates through fiscal year 2044. | |
[5] | Represents minimum payments for natural gas transportation and storage contracts that have expiration dates through fiscal year 2025. | |
[6] | Represents minimum payments for natural gas transportation, storage and peaking contracts that have expiration dates through fiscal year 2031. | |
[7] | Represents electric purchase commitments that are based on existing fixed price and fixed volume contracts. Includes $23.8 million of commitments related to renewable energy credits. |
Pension_and_Other_PostRetireme2
Pension and Other Post-Retirement Benefit Plans (Details) (USD $) | 3 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $3,900,000 | $3,500,000 |
Interest cost | 9,800,000 | 10,100,000 |
Expected return on plan assets | -11,200,000 | -10,300,000 |
Amortization of prior service cost (credit) | 100,000 | 100,000 |
Amortization of actuarial loss | 4,700,000 | 4,200,000 |
Net periodic benefit cost | 7,300,000 | 7,600,000 |
Amount allocated to construction projects | -1,100,000 | -1,000,000 |
Amount deferred as regulatory asset (liability)-net | 1,800,000 | 1,800,000 |
Amount charged (credited) to expense | 8,000,000 | 8,400,000 |
Health and Life Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 1,700,000 | 2,100,000 |
Interest cost | 3,700,000 | 5,400,000 |
Expected return on plan assets | -5,200,000 | -4,700,000 |
Amortization of prior service cost (credit) | -3,800,000 | -1,000,000 |
Amortization of actuarial loss | 1,100,000 | 700,000 |
Net periodic benefit cost | -2,500,000 | 2,500,000 |
Amount allocated to construction projects | 500,000 | -400,000 |
Amount deferred as regulatory asset (liability)-net | -100,000 | 100,000 |
Amount charged (credited) to expense | ($2,100,000) | $2,200,000 |
Changes_in_Accumulated_Other_C2
Changes in Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
WGL Holdings, Inc. | ||||
Accumulated Other Comprehensive Income Loss Net Of Tax [Roll Forward] | ||||
Beginning Balance | ($7,961) | ($11,048) | ||
Qualified cash flow hedging instruments | -8,265 | [1] | 0 | [1] |
Change in prior service cost (credit) | -171 | [2] | -35 | [2] |
Change in actuarial net loss (gain) | 484 | [2] | 364 | [2] |
Current-period other comprehensive income (loss) | -7,952 | 329 | ||
Income Tax Expense (Benefit) Related to Other Comprehensive Income | -3,947 | 130 | ||
Ending Balance | -11,966 | -10,849 | ||
Washington Gas Light Company | ||||
Accumulated Other Comprehensive Income Loss Net Of Tax [Roll Forward] | ||||
Beginning Balance | -6,413 | -11,048 | ||
Change in prior service cost (credit) | -171 | [3] | -35 | [3] |
Change in actuarial net loss (gain) | 484 | [3] | 364 | [3] |
Current-period other comprehensive income (loss) | 313 | 329 | ||
Income Tax Expense (Benefit) Related to Other Comprehensive Income | 124 | 130 | ||
Ending Balance | ($6,224) | ($10,849) | ||
[1] | (a) Cash flow hedging instruments represent interest rate swap agreements on debt issuances. Refer to Note 8-Derivative and weather-related instruments for further discussion of the interest rate swap agreements. | |||
[2] | (b) These accumulated other comprehensive income components are included in the computation of net periodic benefit cost. Refer to Note 14-Pension and other post-retirement benefit plans for additional details. | |||
[3] | (a) These accumulated other comprehensive income components are included in the computation of net periodic benefit cost. Refer to Note #14-Pension and other post-retirement benefit plans for additional details. |