Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2022 | Sep. 01, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 333-266049 | |
Entity Registrant Name | EASTERN GAS TRANSMISSION AND STORAGE, INC. | |
Entity Tax Identification Number | 55-0629203 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 6603 West Broad Street | |
Entity Address, City or Town | Richmond | |
Entity Address, State or Province | VA | |
Entity Address, Postal Zip Code | 23230 | |
City Area Code | 804 | |
Local Phone Number | 613-5100 | |
Entity Current Reporting Status | No | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 60,101 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001936737 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 29 | $ 11 |
Restricted cash and cash equivalents | 24 | 15 |
Trade receivables, net | 81 | 98 |
Receivables from affiliates | 8 | 9 |
Inventories | 50 | 48 |
Income taxes receivable | 3 | 19 |
Prepayments | 36 | 35 |
Natural gas imbalances | 187 | 94 |
Other current assets | 9 | 10 |
Total current assets | 427 | 339 |
Property, plant and equipment, net | 4,405 | 4,440 |
Deferred income taxes | 169 | 199 |
Notes receivable from affiliates | 1 | 3 |
Other assets | 113 | 120 |
Total assets | 5,115 | 5,101 |
Current liabilities: | ||
Accounts payable | 28 | 54 |
Accounts payable to affiliates | 15 | 13 |
Accrued property, income and other taxes | 67 | 71 |
Accrued employee expenses | 23 | 12 |
Notes payable to affiliates | 7 | 68 |
Regulatory liabilities | 23 | 25 |
Customer and security deposits | 24 | 15 |
Asset retirement obligations | 32 | 33 |
Other current liabilities | 82 | 37 |
Total current liabilities | 301 | 328 |
Long-term debt | 1,582 | 1,581 |
Regulatory liabilities | 510 | 507 |
Other long-term liabilities | 139 | 145 |
Total liabilities | 2,532 | 2,561 |
Commitments and contingencies | ||
Shareholder's equity: | ||
Common stock - 75,000 shares authorized, $10,000 par value, 60,101 shares issued and outstanding | 609 | 609 |
Additional paid-in capital | 1,254 | 1,241 |
Retained earnings | 750 | 721 |
Accumulated other comprehensive loss, net | (30) | (31) |
Total shareholder's equity | 2,583 | 2,540 |
Total liabilities and shareholder's equity | $ 5,115 | $ 5,101 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Common stock, shares authorized | 75,000 | 75,000 |
Common stock, par value (in dollars per share) | $ 10,000 | $ 10,000 |
Common stock, shares issued | 60,101 | 60,101 |
Common stock, shares outstanding | 60,101 | 60,101 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement [Abstract] | ||||
Operating revenue | $ 234 | $ 192 | $ 457 | $ 433 |
Operating expenses: | ||||
Excess gas | (21) | (9) | (24) | (10) |
Operations and maintenance | 86 | 96 | 170 | 188 |
Depreciation and amortization | 38 | 41 | 81 | 81 |
Property and other taxes | 15 | 17 | 24 | 33 |
Disallowance and abandonment of utility plant | 0 | (11) | 0 | (11) |
Total operating expenses | 118 | 134 | 251 | 281 |
Operating income | 116 | 58 | 206 | 152 |
Other income (expense): | ||||
Interest expense | (17) | (22) | (34) | (44) |
Allowance for equity funds | 1 | 2 | 2 | 3 |
Other, net | (1) | 0 | (1) | 1 |
Total other income (expense) | (17) | (20) | (33) | (40) |
Income before income tax expense | 99 | 38 | 173 | 112 |
Income tax expense | 28 | 12 | 47 | 30 |
Net income | $ 71 | $ 26 | $ 126 | $ 82 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 71 | $ 26 | $ 126 | $ 82 |
Other comprehensive (loss) income, net of tax: | ||||
Unrealized gains (losses) on cash flow hedges, net of tax | 0 | (32) | 1 | (32) |
Total other comprehensive (loss) income, net of tax | 0 | (32) | 1 | (32) |
Comprehensive income (loss) attributable to parent | $ 71 | $ (6) | $ 127 | $ 50 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Unrealized gains (losses) on cash flow hedges, tax | $ 0 | $ (12) | $ 0 | $ (12) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity (Unaudited) - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss, Net |
Beginning balance (in shares) at Dec. 31, 2020 | 60,101,000,000 | ||||
Beginning balance at Dec. 31, 2020 | $ 2,179 | $ 609 | $ 929 | $ 641 | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 82 | 82 | |||
Other comprehensive income (loss) | (32) | (32) | |||
Dividends declared | (18) | (18) | |||
Contributions | 286 | 286 | |||
Ending balance (in shares) at Jun. 30, 2021 | 60,101,000,000 | ||||
Ending balance at Jun. 30, 2021 | 2,497 | $ 609 | 1,215 | 705 | (32) |
Beginning balance (in shares) at Mar. 31, 2021 | 60,101,000,000 | ||||
Beginning balance at Mar. 31, 2021 | 2,228 | $ 609 | 940 | 679 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 26 | 26 | |||
Other comprehensive income (loss) | (32) | (32) | |||
Contributions | 275 | 275 | |||
Ending balance (in shares) at Jun. 30, 2021 | 60,101,000,000 | ||||
Ending balance at Jun. 30, 2021 | $ 2,497 | $ 609 | 1,215 | 705 | (32) |
Beginning balance (in shares) at Dec. 31, 2021 | 60,101 | 60,101,000,000 | |||
Beginning balance at Dec. 31, 2021 | $ 2,540 | $ 609 | 1,241 | 721 | (31) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 126 | 126 | |||
Other comprehensive income (loss) | 1 | 1 | |||
Dividends declared | (97) | (97) | |||
Contributions | $ 13 | 13 | |||
Ending balance (in shares) at Jun. 30, 2022 | 60,101 | 60,101,000,000 | |||
Ending balance at Jun. 30, 2022 | $ 2,583 | $ 609 | 1,254 | 750 | (30) |
Beginning balance (in shares) at Mar. 31, 2022 | 60,101,000,000 | ||||
Beginning balance at Mar. 31, 2022 | 2,596 | $ 609 | 1,241 | 776 | (30) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 71 | 71 | |||
Other comprehensive income (loss) | 0 | ||||
Dividends declared | (97) | (97) | |||
Contributions | $ 13 | 13 | |||
Ending balance (in shares) at Jun. 30, 2022 | 60,101 | 60,101,000,000 | |||
Ending balance at Jun. 30, 2022 | $ 2,583 | $ 609 | $ 1,254 | $ 750 | $ (30) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 126 | $ 82 |
Adjustments to reconcile net income to net cash flows from operating activities: | ||
Losses (gains) on other items, net | 1 | (9) |
Depreciation and amortization | 81 | 81 |
Allowance for equity funds | (2) | (3) |
Changes in regulatory assets and liabilities | (9) | 7 |
Deferred income taxes | 30 | 46 |
Other, net | 4 | (4) |
Changes in other operating assets and liabilities: | ||
Trade receivables and other assets | 4 | 51 |
Receivables from affiliates | 1 | (45) |
Pension and other postretirement benefit plans | 0 | (11) |
Accrued property, income and other taxes | (8) | (11) |
Accounts payable and other liabilities | 51 | (7) |
Accounts payable to affiliates | 2 | 21 |
Net cash flows from operating activities | 281 | 198 |
Cash flows from investing activities: | ||
Capital expenditures | (109) | (115) |
Repayment of notes by affiliates | 10 | 0 |
Notes to affiliates | (8) | 0 |
Other, net | (6) | (12) |
Net cash flows from investing activities | (113) | (127) |
Cash flows from financing activities: | ||
Repayment of notes payable to affiliates, net | (61) | (65) |
Dividends paid | (80) | (18) |
Other, net | 0 | 8 |
Net cash flows from financing activities | (141) | (75) |
Net change in cash and cash equivalents and restricted cash and cash equivalents | 27 | (4) |
Cash and cash equivalents and restricted cash and cash equivalents at beginning of period | 26 | 23 |
Cash and cash equivalents and restricted cash and cash equivalents at end of period | $ 53 | $ 19 |
General
General | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | General Eastern Gas Transmission and Storage, Inc. and its subsidiaries ("EGTS") conducts business activities consisting of Federal Energy Regulatory Commission ("FERC")-regulated interstate natural gas transmission pipeline and underground storage. EGTS' operations include transmission pipelines in Maryland, New York, Ohio, Pennsylvania, Virginia and West Virginia. EGTS also operates one of the nation's largest underground natural gas storage systems located in New York, Pennsylvania and West Virginia. EGTS is a wholly owned subsidiary of Eastern Energy Gas Holdings, LLC ("Eastern Energy Gas"), which is an indirect wholly owned subsidiary of Berkshire Hathaway Energy Company ("BHE"). BHE is a holding company based in Des Moines, Iowa that owns subsidiaries principally engaged in the energy industry. BHE is a consolidated subsidiary of Berkshire Hathaway Inc. The unaudited Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and the United States Securities and Exchange Commission's ("SEC") rules and regulations for Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the disclosures required by GAAP for annual financial statements. Management believes the unaudited Consolidated Financial Statements contain all adjustments (consisting only of normal recurring adjustments) considered necessary for the fair presentation of the unaudited Consolidated Financial Statements as of June 30, 2022 and for the three- and six-month periods ended June 30, 2022 and 2021. The results of operations for the three- and six-month periods ended June 30, 2022 are not necessarily indicative of the results to be expected for the full year. The preparation of the unaudited Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the unaudited Consolidated Financial Statements and the reported amounts of revenue and expenses during the period. Actual results may differ from the estimates used in preparing the unaudited Consolidated Financial Statements. Note 2 of Notes to Consolidated Financial Statements for the three years ended December 31, 2021 included in EGTS' Form S-4 (SEC Registration No. 333-266049), as amended, describes the most significant accounting policies used in the preparation of the unaudited Consolidated Financial Statements. There have been no significant changes in EGTS' assumptions regarding significant accounting estimates and policies during the six-month period ended June 30, 2022. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 6 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | Property, Plant and Equipment, Net Property, plant and equipment, net consists of the following (in millions): As of June 30, December 31, Depreciable Life 2022 2021 Interstate natural gas pipeline and storage assets 29 - 41 years $ 6,551 $ 6,517 Intangible plant 5 - 40 years 73 74 Plant in-service 6,624 6,591 Accumulated depreciation and amortization (2,381) (2,339) Plant in-service, net 4,243 4,252 Construction work-in-progress 162 188 Property, plant and equipment, net $ 4,405 $ 4,440 |
Regulatory Matters
Regulatory Matters | 6 Months Ended |
Jun. 30, 2022 | |
Regulated Operations [Abstract] | |
Regulatory Matters | Regulatory MattersIn September 2021, EGTS filed a general rate case for its FERC-jurisdictional services, with proposed rates to be effective November 1, 2021. EGTS' previous general rate case was settled in 1998. EGTS proposed an annual cost-of-service of approximately $1.1 billion, and requested increases in various rates, including general system storage rates by 85% and general system transportation rates by 60%. In October 2021, the FERC issued an order that accepted the November 1, 2021 effective date for certain changes in rates, while suspending the other changes for five months following the proposed effective date, until April 1, 2022, subject to refund and the outcome of hearing procedures. In June 2022, the parties reached an agreement in principle and the litigation procedural schedule was ordered held in abeyance for 90 days to enable the parties to finalize a settlement. The settlement is expected to be filed by September 30, 2022. As of June 30, 2022, EGTS' provision for rate refund for April 2022 through June 2022 totaled $35 million and was included in other current liabilities on the Consolidated Balance Sheet. In July 2017, the FERC audit staff communicated to EGTS that it had substantially completed an audit of EGTS' compliance with the accounting and reporting requirements of the FERC's Uniform System of Accounts and provided a description of matters and preliminary recommendations. In November 2017, the FERC audit staff issued its audit report. In December 2017, EGTS provided its response to the audit report. EGTS requested FERC review of the contested findings and submitted its plan for compliance with the uncontested portions of the report. EGTS reached resolution of certain matters with the FERC in the fourth quarter of 2018. EGTS recognized a charge for a disallowance of plant, originally established beginning in 2012, for the resolution of one matter with the FERC. In December 2020, the FERC issued a final ruling on the remaining matter, which resulted in a $43 million ($31 million after-tax) estimated charge for disallowance of capitalized allowance for funds used during construction. As a condition of the December 2020 ruling, EGTS filed its proposed accounting entries and supporting documentation with the FERC during the second quarter of 2021. During the finalization of these entries, EGTS refined the estimated charge for disallowance of capitalized allowance for funds used during construction, which resulted in a reduction to the estimated charge of $11 million ($8 million after-tax) that was recorded in disallowance and abandonment of utility plant in its Consolidated Statements of Operations in the second quarter of 2021. In September 2021, the FERC approved EGTS' accounting entries and supporting documentation. |
Investments and Restricted Cash
Investments and Restricted Cash and Cash Equivalents | 6 Months Ended |
Jun. 30, 2022 | |
Investments and Restricted Cash and Cash Equivalents [Abstract] | |
Investments and Restricted Cash and Cash Equivalents | Investments and Restricted Cash and Cash Equivalents Investments and restricted cash and cash equivalents consists of the following (in millions): As of June 30, December 31, 2022 2021 Investments: Investment funds $ 13 $ 13 Total investments 13 13 Restricted cash and cash equivalents: Customer deposits 24 15 Total restricted cash and cash equivalents 24 15 Total investments and restricted cash and cash equivalents $ 37 $ 28 Reflected as: Current assets $ 24 $ 15 Noncurrent assets 13 13 Total investments and restricted cash and cash equivalents $ 37 $ 28 Cash and Cash Equivalents and Restricted Cash and Cash Equivalents Cash equivalents consist of funds invested in money market mutual funds, U.S. Treasury Bills and other investments with a maturity of three months or less when purchased. Cash and cash equivalents exclude amounts where availability is restricted by legal requirements, loan agreements or other contractual provisions. Restricted cash and cash equivalents consist of customer deposits as allowed under the FERC gas tariff. A reconciliation of cash and cash equivalents and restricted cash and cash equivalents as presented in the Consolidated Statements of Cash Flows is outlined below and disaggregated by the line items in which they appear on the Consolidated Balance Sheets (in millions): As of June 30, December 31, 2022 2021 Cash and cash equivalents $ 29 $ 11 Restricted cash and cash equivalents 24 15 Total cash and cash equivalents and restricted cash and cash equivalents $ 53 $ 26 |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term DebtOn June 30, 2021, Eastern Energy Gas exchanged a total of $1.6 billion of its issued and outstanding third party notes for new notes, making EGTS the primary obligor of the new notes. The terms of the new notes are substantially similar to the terms of the original Eastern Energy Gas notes. The debt exchange was a common control transaction accounted for as a debt modification. As such, no gain or loss was recognized in the Consolidated Statements of Operations and approximately $17 million of unamortized discounts and debt issuance costs and $32 million of deferred losses on previously settled interest rate swaps remaining in AOCI were contributed to EGTS by Eastern Energy Gas in connection with the transaction. In addition, new fees of $2 million paid directly to note holders in connection with the exchange were deferred as additional debt issuance costs that will be amortized over the lives of the respective notes. As a result of the transaction, EGTS' $1.9 billion of long-term indebtedness to Eastern Energy Gas was cancelled in full and the remaining balance was satisfied through a capital contribution. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes A reconciliation of the federal statutory income tax rate to the effective income tax rate applicable to income before income tax expense is as follows: Three-Month Periods Six-Month Periods Ended June 30, Ended June 30, 2022 2021 2022 2021 Federal statutory income tax rate 21 % 21 % 21 % 21 % State income tax, net of federal income tax benefit 7 8 6 7 Effects of ratemaking — (4) — (3) Debt exchange — 6 — 2 Other, net — 1 — — Effective income tax rate 28 % 32 % 27 % 27 % |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2022 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans EGTS is a participant in benefit plans sponsored by MidAmerican Energy Company ("MidAmerican Energy"), an affiliate. The MidAmerican Energy Company Retirement Plan includes a qualified pension plan that provides pension benefits for eligible employees. The MidAmerican Energy Company Welfare Benefit Plan provides certain postretirement health care and life insurance benefits for eligible retirees on behalf of EGTS. EGTS contributed $5 million to the MidAmerican Energy Company Retirement Plan and $1 million to the MidAmerican Energy Company Welfare Benefit Plan for the six-month period ended June 30, 2022. Amounts attributable to EGTS were allocated from MidAmerican Energy in accordance with the intercompany administrative service agreement. Offsetting regulatory assets and liabilities have been recorded related to the amounts not yet recognized as a component of net periodic benefit costs that will be included in regulated rates. As of both June 30, 2022 and December 31, 2021, EGTS' net amount due to MidAmerican Energy associated with these plans and primarily reflected in other long-term liabilities on the Consolidated Balance Sheets was $76 million. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The carrying value of EGTS' cash, certain cash equivalents, receivables, payables, accrued liabilities and short-term borrowings approximates fair value because of the short-term maturity of these instruments. EGTS has various financial assets and liabilities that are measured at fair value on the Consolidated Financial Statements using inputs from the three levels of the fair value hierarchy. A financial asset or liability classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The three levels are as follows: • Level 1 - Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that EGTS has the ability to access at the measurement date. • Level 2 - Inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs). • Level 3 - Unobservable inputs reflect EGTS' judgments about the assumptions market participants would use in pricing the asset or liability since limited market data exists. EGTS develops these inputs based on the best information available, including its own data. The following table presents EGTS' financial assets and liabilities recognized on the Consolidated Balance Sheets and measured at fair value on a recurring basis (in millions): Input Levels for Fair Value Measurements Level 1 Level 2 Level 3 Total As of June 30, 2022 Assets: Money market mutual funds $ 15 $ — $ — $ 15 Equity securities: Investment funds 13 — — 13 $ 28 $ — $ — $ 28 Liabilities: Commodity derivatives $ — $ (1) $ — $ (1) $ — $ (1) $ — $ (1) As of December 31, 2021 Assets: Equity securities: Investment funds $ 13 $ — $ — $ 13 $ 13 $ — $ — $ 13 EGTS' investments in money market mutual funds and investment funds are stated at fair value. When available, a readily observable quoted market price or net asset value of an identical security in an active market is used to record the fair value. Derivative contracts are recorded on the Consolidated Balance Sheets as either assets or liabilities and are stated at estimated fair value unless they are designated as normal purchase or normal sales and qualify for the exception afforded by GAAP. When available, the fair value of derivative contracts is estimated using unadjusted quoted prices for identical contracts in the market in which EGTS transacts. When quoted prices for identical contracts are not available, EGTS uses forward price curves. Forward price curves represent EGTS' estimates of the prices at which a buyer or seller could contract today for delivery or settlement at future dates. EGTS bases its forward price curves upon market price quotations, when available, or internally developed and commercial models, with internal and external fundamental data inputs. Market price quotations are obtained from independent brokers, exchanges, direct communication with market participants and actual transactions executed by EGTS. Market price quotations are generally readily obtainable for the applicable term of EGTS' outstanding derivative contracts; therefore, EGTS' forward price curves reflect observable market quotes. Market price quotations for certain natural gas trading hubs are not as readily obtainable due to the length of the contracts. Given that limited market data exists for these contracts, as well as for those contracts that are not actively traded, EGTS uses forward price curves derived from internal models based on perceived pricing relationships to major trading hubs that are based on unobservable inputs. The estimated fair value of these derivative contracts is a function of underlying forward commodity prices, related volatility, counterparty creditworthiness and duration of contracts. EGTS' long-term debt is carried at cost, including unamortized premiums, discounts and debt issuance costs as applicable, on the Consolidated Financial Statements. The fair value of EGTS' long-term debt is a Level 2 fair value measurement and has been estimated based upon quoted market prices, where available, or at the present value of future cash flows discounted at rates consistent with comparable maturities with similar credit risks. The following table presents the carrying value and estimated fair value of EGTS' long-term debt (in millions): As of June 30, 2022 As of December 31, 2021 Carrying Fair Carrying Fair Long-term debt $ 1,582 $ 1,449 $ 1,581 $ 1,812 |
Commitment and Contingencies
Commitment and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Matters EGTS is party to a variety of legal actions arising out of the normal course of business. Plaintiffs occasionally seek punitive or exemplary damages. EGTS does not believe that such normal and routine litigation will have a material impact on its consolidated financial results. Environmental Laws and Regulations EGTS is subject to federal, state and local laws and regulations regarding climate change, air and water quality, emissions performance standards, hazardous and solid waste disposal, protected species and other environmental matters that have the potential to impact its current and future operations. EGTS believes it is in material compliance with all applicable laws and regulations. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers The following table summarizes EGTS' revenue from contracts with customers ("Customer Revenue") by regulated and other, with further disaggregation of regulated by line of business (in millions): Three-Month Periods Six-Month Periods Ended June 30, Ended June 30, 2022 2021 2022 2021 Customer Revenue: Regulated: Gas transportation $ 145 $ 129 $ 310 $ 288 Gas storage 69 47 116 95 Wholesale — — — 17 Total regulated 214 176 426 400 Management service and other revenues 19 18 37 35 Total Customer Revenue 233 194 463 435 Other revenue (1) 1 (2) (6) (2) Total operating revenue $ 234 $ 192 $ 457 $ 433 (1) Other revenue consists primarily of revenue recognized in accordance with Accounting Standards Codification 815, "Derivative and Hedging" and includes unrealized gains and losses for derivatives not designated as hedges related to natural gas sales contracts. Remaining Performance Obligations The following table summarizes EGTS' revenue it expects to recognize in future periods related to significant unsatisfied remaining performance obligations for fixed contracts with expected durations in excess of one year as of June 30, 2022 (in millions): Performance obligations expected to be satisfied Less than 12 months More than 12 months Total EGTS $ 864 $ 4,000 $ 4,864 |
General (Policies)
General (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting | The unaudited Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and the United States Securities and Exchange Commission's ("SEC") rules and regulations for Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the disclosures required by GAAP for annual financial statements. Management believes the unaudited Consolidated Financial Statements contain all adjustments (consisting only of normal recurring adjustments) considered necessary for the fair presentation of the unaudited Consolidated Financial Statements as of June 30, 2022 and for the three- and six-month periods ended June 30, 2022 and 2021. The results of operations for the three- and six-month periods ended June 30, 2022 are not necessarily indicative of the results to be expected for the full year. |
Use of Estimates | The preparation of the unaudited Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the unaudited Consolidated Financial Statements and the reported amounts of revenue and expenses during the period. Actual results may differ from the estimates used in preparing the unaudited Consolidated Financial Statements. |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment, net consists of the following (in millions): As of June 30, December 31, Depreciable Life 2022 2021 Interstate natural gas pipeline and storage assets 29 - 41 years $ 6,551 $ 6,517 Intangible plant 5 - 40 years 73 74 Plant in-service 6,624 6,591 Accumulated depreciation and amortization (2,381) (2,339) Plant in-service, net 4,243 4,252 Construction work-in-progress 162 188 Property, plant and equipment, net $ 4,405 $ 4,440 |
Investments and Restricted Ca_2
Investments and Restricted Cash and Cash Equivalents (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Investments and Restricted Cash and Cash Equivalents [Abstract] | |
Components of Investments and Restricted Cash | Investments and restricted cash and cash equivalents consists of the following (in millions): As of June 30, December 31, 2022 2021 Investments: Investment funds $ 13 $ 13 Total investments 13 13 Restricted cash and cash equivalents: Customer deposits 24 15 Total restricted cash and cash equivalents 24 15 Total investments and restricted cash and cash equivalents $ 37 $ 28 Reflected as: Current assets $ 24 $ 15 Noncurrent assets 13 13 Total investments and restricted cash and cash equivalents $ 37 $ 28 |
Schedule of Cash and Cash Equivalents | A reconciliation of cash and cash equivalents and restricted cash and cash equivalents as presented in the Consolidated Statements of Cash Flows is outlined below and disaggregated by the line items in which they appear on the Consolidated Balance Sheets (in millions): As of June 30, December 31, 2022 2021 Cash and cash equivalents $ 29 $ 11 Restricted cash and cash equivalents 24 15 Total cash and cash equivalents and restricted cash and cash equivalents $ 53 $ 26 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the federal statutory income tax rate to the effective income tax rate applicable to income before income tax expense is as follows: Three-Month Periods Six-Month Periods Ended June 30, Ended June 30, 2022 2021 2022 2021 Federal statutory income tax rate 21 % 21 % 21 % 21 % State income tax, net of federal income tax benefit 7 8 6 7 Effects of ratemaking — (4) — (3) Debt exchange — 6 — 2 Other, net — 1 — — Effective income tax rate 28 % 32 % 27 % 27 % |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table presents EGTS' financial assets and liabilities recognized on the Consolidated Balance Sheets and measured at fair value on a recurring basis (in millions): Input Levels for Fair Value Measurements Level 1 Level 2 Level 3 Total As of June 30, 2022 Assets: Money market mutual funds $ 15 $ — $ — $ 15 Equity securities: Investment funds 13 — — 13 $ 28 $ — $ — $ 28 Liabilities: Commodity derivatives $ — $ (1) $ — $ (1) $ — $ (1) $ — $ (1) As of December 31, 2021 Assets: Equity securities: Investment funds $ 13 $ — $ — $ 13 $ 13 $ — $ — $ 13 |
Schedule of Carrying Value and Fair Value of Debt | The following table presents the carrying value and estimated fair value of EGTS' long-term debt (in millions): As of June 30, 2022 As of December 31, 2021 Carrying Fair Carrying Fair Long-term debt $ 1,582 $ 1,449 $ 1,581 $ 1,812 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table summarizes EGTS' revenue from contracts with customers ("Customer Revenue") by regulated and other, with further disaggregation of regulated by line of business (in millions): Three-Month Periods Six-Month Periods Ended June 30, Ended June 30, 2022 2021 2022 2021 Customer Revenue: Regulated: Gas transportation $ 145 $ 129 $ 310 $ 288 Gas storage 69 47 116 95 Wholesale — — — 17 Total regulated 214 176 426 400 Management service and other revenues 19 18 37 35 Total Customer Revenue 233 194 463 435 Other revenue (1) 1 (2) (6) (2) Total operating revenue $ 234 $ 192 $ 457 $ 433 (1) Other revenue consists primarily of revenue recognized in accordance with Accounting Standards Codification 815, "Derivative and Hedging" and includes unrealized gains and losses for derivatives not designated as hedges related to natural gas sales contracts. |
Summary of Remaining Performance Obligations | The following table summarizes EGTS' revenue it expects to recognize in future periods related to significant unsatisfied remaining performance obligations for fixed contracts with expected durations in excess of one year as of June 30, 2022 (in millions): Performance obligations expected to be satisfied Less than 12 months More than 12 months Total EGTS $ 864 $ 4,000 $ 4,864 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | ||
Plant in-service | $ 6,624 | $ 6,591 |
Accumulated depreciation and amortization | (2,381) | (2,339) |
Plant in-service, net | 4,243 | 4,252 |
Construction work-in-progress | 162 | 188 |
Property, plant and equipment, net | 4,405 | 4,440 |
Interstate natural gas pipeline and storage assets | ||
Property, Plant and Equipment [Line Items] | ||
Plant in-service | $ 6,551 | 6,517 |
Interstate natural gas pipeline and storage assets | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable life | 29 years | |
Interstate natural gas pipeline and storage assets | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable life | 41 years | |
Intangible plant | ||
Property, Plant and Equipment [Line Items] | ||
Plant in-service | $ 73 | $ 74 |
Intangible plant | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable life | 5 years | |
Intangible plant | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable life | 40 years |
Regulatory Matters (Details)
Regulatory Matters (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | ||
Sep. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2022 | |
Schedule Of Regulatory Assets and Liabilities [Line Items] | ||||
Provision for rate refunds | $ 35 | |||
FERC case, disallowance of capitalized AFUDC, resolved in December 2020 | ||||
Schedule Of Regulatory Assets and Liabilities [Line Items] | ||||
Litigation settlement expense | $ 43 | |||
Litigation settlement expense, net of tax | $ 31 | |||
Litigation settlement, reduction in expense | $ 11 | |||
Litigation settlement, reduction in expense, net of tax | $ 8 | |||
General rate case | FERC | ||||
Schedule Of Regulatory Assets and Liabilities [Line Items] | ||||
Proposed annual cost-of-service | $ 1,100 | |||
General rate case | FERC | Gas storage | ||||
Schedule Of Regulatory Assets and Liabilities [Line Items] | ||||
Proposed annual cost-of-service, rate increase | 85% | |||
General rate case | FERC | Gas transportation | ||||
Schedule Of Regulatory Assets and Liabilities [Line Items] | ||||
Proposed annual cost-of-service, rate increase | 60% |
Investments and Restricted Ca_3
Investments and Restricted Cash and Cash Equivalents - Components (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Investments And Restricted Cash And Investments [Line Items] | ||
Investments | $ 13 | $ 13 |
Restricted cash and cash equivalents | 24 | 15 |
Total investments and restricted cash and cash equivalents | 37 | 28 |
Reflected as: | ||
Current assets | 24 | 15 |
Noncurrent assets | 13 | 13 |
Customer deposits | ||
Investments And Restricted Cash And Investments [Line Items] | ||
Restricted cash and cash equivalents | 24 | 15 |
Investment funds | ||
Investments And Restricted Cash And Investments [Line Items] | ||
Investments | $ 13 | $ 13 |
Investments and Restricted Ca_4
Investments and Restricted Cash and Cash Equivalents - Reconciliation (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Investments and Restricted Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 29 | $ 11 | ||
Restricted cash and cash equivalents | 24 | 15 | ||
Total cash and cash equivalents and restricted cash and cash equivalents | $ 53 | $ 26 | $ 19 | $ 23 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Debt Instrument [Line Items] | |||||
Unrealized losses on cash flow hedges, net of tax | $ 32 | $ 0 | $ 32 | $ (1) | $ 32 |
Debt extinguished | 1,900 | ||||
Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt, face amount | 1,600 | 1,600 | 1,600 | ||
Unamortized discounts and debt issuance costs | 17 | $ 17 | $ 17 | ||
Payments of debt issuance costs | $ 2 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Federal statutory income tax rate | 21% | 21% | 21% | 21% |
State income tax, net of federal income tax benefit | 7% | 8% | 6% | 7% |
Effects of ratemaking | 0% | (4.00%) | 0% | (3.00%) |
Debt exchange | 0% | 6% | 0% | 2% |
Other, net | 0% | 1% | 0% | 0% |
Effective income tax rate | 28% | 32% | 27% | 27% |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Employee benefit plan liability, noncurrent | $ 76 | $ 76 |
MidAmerican Energy Company Retirement Plan | Pension plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Employer contributions | 5 | |
MidAmerican Energy Company Welfare Benefit Plan | Other postretirement benefits plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Employer contributions | $ 1 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | $ 13 | $ 13 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 13 | 13 |
Total assets | 28 | 13 |
Derivatives | (1) | |
Total liabilities | (1) | |
Recurring | Money market mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market mutual funds | 15 | |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 13 | 13 |
Total assets | 28 | 13 |
Derivatives | 0 | |
Total liabilities | 0 | |
Recurring | Level 1 | Money market mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market mutual funds | 15 | |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Total assets | 0 | 0 |
Derivatives | (1) | |
Total liabilities | (1) | |
Recurring | Level 2 | Money market mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market mutual funds | 0 | |
Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Total assets | 0 | $ 0 |
Derivatives | 0 | |
Total liabilities | 0 | |
Recurring | Level 3 | Money market mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market mutual funds | $ 0 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Carrying Value and Fair Value of Debt (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | $ 1,582 | $ 1,581 |
Level 2 | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, fair value | $ 1,449 | $ 1,812 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenue from External Customer [Line Items] | ||||
Total customer revenue | $ 233 | $ 194 | $ 463 | $ 435 |
Other revenue | 1 | (2) | (6) | (2) |
Total operating revenue | 234 | 192 | 457 | 433 |
Regulated | ||||
Revenue from External Customer [Line Items] | ||||
Total customer revenue | 214 | 176 | 426 | 400 |
Management service and other revenues | ||||
Revenue from External Customer [Line Items] | ||||
Total customer revenue | 19 | 18 | 37 | 35 |
Gas transportation | Regulated | ||||
Revenue from External Customer [Line Items] | ||||
Total customer revenue | 145 | 129 | 310 | 288 |
Gas storage | Regulated | ||||
Revenue from External Customer [Line Items] | ||||
Total customer revenue | 69 | 47 | 116 | 95 |
Wholesale | Regulated | ||||
Revenue from External Customer [Line Items] | ||||
Total customer revenue | $ 0 | $ 0 | $ 0 | $ 17 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Remaining Performance Obligation (Details) $ in Millions | Jun. 30, 2022 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 4,864 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 864 |
Performance obligations expected to be satisfied, expected timing of satisfaction, period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 4,000 |
Performance obligations expected to be satisfied, expected timing of satisfaction, period |