Document_and_Entity_Informatio
Document and Entity Information (USD $) | 9 Months Ended | ||
Sep. 30, 2014 | Nov. 25, 2014 | Mar. 31, 2014 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'ALABAMA GAS CORP | ' | ' |
Entity Central Index Key | '0000003146 | ' | ' |
Current Fiscal Year End Date | '--09-30 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Non-accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $0 |
Entity Common Stock, Shares Outstanding | ' | 1,972,052 | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Document Type | '10-KT | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 30-Sep-14 | ' | ' |
STATEMENTS_OF_INCOME
STATEMENTS OF INCOME (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Revenues: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Utility | ' | ' | ' | ' | ' | ' | ' | $417.20 | $390.60 | $533.30 | $451.60 |
Total Operating Revenues | 59.4 | 93.9 | 263.9 | 142.7 | 48.4 | 104.5 | 237.7 | 417.2 | 390.6 | 533.3 | 451.6 |
Utility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Natural gas | ' | ' | ' | ' | ' | ' | ' | 184.5 | 163.4 | 215.5 | 142.2 |
Other operation and maintenance expenses | ' | ' | ' | ' | ' | ' | ' | 107.5 | 107.7 | 143.1 | 141.3 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | 34.4 | 32.7 | 43.9 | 42.3 |
Taxes, other than income taxes | ' | ' | ' | ' | ' | ' | ' | 28.6 | 27.8 | 37.1 | 32.5 |
Total Utility Operating Expenses | ' | ' | ' | ' | ' | ' | ' | 355 | 331.6 | 439.6 | 358.3 |
Operating Income | -12.1 | 1.9 | 72.4 | 34.7 | -22.5 | 2.2 | 79.3 | 62.2 | 59 | 93.7 | 93.3 |
Other Income | ' | ' | ' | ' | ' | ' | ' | 2.2 | 13.2 | 14 | 2.7 |
Interest Charges: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest on long-term debt | ' | ' | ' | ' | ' | ' | ' | 10.1 | 10.1 | 13.5 | 13.7 |
Other interest charges | ' | ' | ' | ' | ' | ' | ' | 1.4 | 1.6 | 2.1 | 2.6 |
Total Interest Charges | ' | ' | ' | ' | ' | ' | ' | 11.5 | 11.7 | 15.6 | 16.3 |
Income Before Income Taxes | ' | ' | ' | ' | ' | ' | ' | 52.9 | 60.5 | 92.1 | 79.7 |
Income Tax Expense | ' | ' | ' | ' | ' | ' | ' | 19.9 | 22.9 | 34.7 | 30.3 |
Net Income | ($9.40) | ($0.60) | $43 | $19.80 | ($8.90) | ($0.70) | $47.20 | $33 | $37.60 | $57.40 | $49.40 |
BALANCE_SHEETS
BALANCE SHEETS (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
ASSETS | ' | ' |
Utility Plant | $1,525.10 | $1,491.40 |
Less – Accumulated depreciation and amortization | 626.4 | 605.9 |
Net Utility Plant | 898.7 | 885.5 |
Other Property and Investments | 0 | 0.1 |
Other Property and Investments | 0 | 0.1 |
Current Assets: | ' | ' |
Cash and cash equivalents | 5.6 | 3 |
Accounts receivable: | ' | ' |
Gas | 39 | 103.3 |
Associated companies | 0 | 4.7 |
Other | 5.1 | 5.4 |
Allowance for doubtful accounts | -5.1 | -5 |
Inventories: | ' | ' |
Natural gas | 45.2 | 32.1 |
Liquefied natural gas in storage | 2.8 | 3.6 |
Materials and supplies | 5.1 | 5.5 |
Income tax receivable | 0.1 | 3.6 |
Deferred income taxes | 2.3 | 20 |
Regulatory assets | 8.8 | 2.8 |
Prepayments and other | 1.5 | 4.7 |
Total Current Assets | 110.4 | 183.7 |
Deferred Charges: | ' | ' |
Regulatory assets | 90.6 | 84.9 |
Deferred income taxes | 277.8 | 0 |
Net asset available for other postretirement benefits | 24.7 | 26.5 |
Other | 22.4 | 17.4 |
Total Deferred Charges | 415.5 | 128.8 |
Total Assets | 1,424.60 | 1,198.10 |
Capitalization: | ' | ' |
Common stock equity, $0.01 par value, 3,000,000 shares authorized, 1,972,052 shares issued at September 30, 2014 and December 31, 2013, respectively | 849.6 | 384.6 |
Long-term debt (less current portion) | 249.8 | 249.9 |
Total Capitalization | 1,099.40 | 634.5 |
Current Liabilities: | ' | ' |
Notes payable | 16 | 50 |
Accounts payable | 34.8 | 48.7 |
Accounts payable – associated companies | 0.4 | 0 |
Advance customer billings | 36.3 | 38.7 |
Wages and compensation accrued | 7.1 | 7.7 |
Taxes accrued | 29.8 | 28 |
Regulatory liabilities | 63.1 | 49 |
Other | 13.8 | 10.1 |
Total Current Liabilities | 201.3 | 232.2 |
Deferred Credits and Other Liabilities: | ' | ' |
Deferred income taxes | 0 | 205.6 |
Pension and postretirement benefit costs | 29.6 | 20.2 |
Regulatory liabilities | 53.7 | 66.6 |
Other | 40.6 | 39 |
Total Deferred Credits and Other Liabilities | 123.9 | 331.4 |
Total Capitalization and Liabilities | $1,424.60 | $1,198.10 |
BALANCE_SHEETS_Parenthetical
BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Common Stock, Par or Stated Value Per Share (in dollars per share) | $0.01 | $0.01 |
Common Stock, Shares Authorized | 3,000,000 | 3,000,000 |
Common Stock, Shares, Issued | 1,972,052 | 1,972,052 |
STATEMENTS_OF_CAPITALIZATION
STATEMENTS OF CAPITALIZATION (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Common Stock Equity: | ' | ' |
Common stock equity, $0.01 par value, 3,000,000 shares authorized, 1,972,052 shares issued at September 30, 2014 and December 31, 2013, respectively | $503.90 | $34.50 |
Retained earnings | 345.7 | 350.1 |
Total Common Stock Equity | 849.6 | 384.6 |
Long Term Debt | ' | ' |
Debt instrument, principal outstanding | 249.8 | 249.9 |
Total Capitalization | 1,099.40 | 634.5 |
5.368% Notes, due December 1, 2015 | ' | ' |
Long Term Debt | ' | ' |
Debt instrument, principal outstanding | 80 | 80 |
5.20% Notes, due January 15, 2020 | ' | ' |
Long Term Debt | ' | ' |
Debt instrument, principal outstanding | 40 | 40 |
3.86% Notes, due December 21, 2021 | ' | ' |
Long Term Debt | ' | ' |
Debt instrument, principal outstanding | 50 | 50 |
5.70% Notes, due January 15, 2035 | ' | ' |
Long Term Debt | ' | ' |
Debt instrument, principal outstanding | 34.8 | 34.9 |
5.90% Notes, due January 15, 2037 | ' | ' |
Long Term Debt | ' | ' |
Debt instrument, principal outstanding | $45 | $45 |
STATEMENTS_OF_CAPITALIZATION_P
STATEMENTS OF CAPITALIZATION (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Schedule of Capitalization, Long-term Debt [Line Items] | ' | ' |
Common Stock, Par or Stated Value Per Share (in dollars per share) | $0.01 | $0.01 |
Common Stock, Shares Authorized | 3,000,000 | 3,000,000 |
Common Stock, Shares, Issued | 1,972,052 | 1,972,052 |
5.20% Notes, due January 15, 2020 | ' | ' |
Long Term Debt | ' | ' |
Debt instrument, interest rate, stated percentage | 5.20% | 5.20% |
5.70% Notes, due January 15, 2035 | ' | ' |
Long Term Debt | ' | ' |
Debt instrument, interest rate, stated percentage | 5.70% | 5.70% |
5.368% Notes, due December 1, 2015 | ' | ' |
Long Term Debt | ' | ' |
Debt instrument, interest rate, stated percentage | 5.37% | 5.37% |
5.90% Notes, due January 15, 2037 | ' | ' |
Long Term Debt | ' | ' |
Debt instrument, interest rate, stated percentage | 5.90% | 5.90% |
3.86% Notes, due December 21, 2021 | ' | ' |
Long Term Debt | ' | ' |
Debt instrument, interest rate, stated percentage | 3.86% | 3.86% |
STATEMENTS_OF_COMMON_SHAREHOLD
STATEMENTS OF COMMON SHAREHOLDERS' EQUITY (USD $) | Total | Common Stock Issued | Paid-in Capital | Retained Earnings |
In Millions, except Share data, unless otherwise specified | ||||
BALANCE at Dec. 31, 2011 | $344.70 | $31.70 | $2.80 | $310.20 |
BALANCE (in shares) at Dec. 31, 2011 | ' | 1,972,052 | ' | ' |
Stockholders' Equity Rollforward | ' | ' | ' | ' |
Net Income | 49.4 | 0 | 0 | 49.4 |
Common stock | -33.6 | 0 | 0 | -33.6 |
BALANCE at Dec. 31, 2012 | 360.5 | 31.7 | 2.8 | 326 |
BALANCE (in shares) at Dec. 31, 2012 | ' | 1,972,052 | ' | ' |
Stockholders' Equity Rollforward | ' | ' | ' | ' |
Net Income | 57.4 | 0 | 0 | 57.4 |
Common stock | -33.3 | 0 | 0 | -33.3 |
BALANCE at Dec. 31, 2013 | 384.6 | 31.7 | 2.8 | 350.1 |
BALANCE (in shares) at Dec. 31, 2013 | ' | 1,972,052 | ' | ' |
Stockholders' Equity Rollforward | ' | ' | ' | ' |
Net Income | 33 | 0 | 0 | 33 |
Common stock | -37.4 | 0 | 0 | -37.4 |
Purchase accounting adjustments | 469.4 | ' | 469.4 | 0 |
BALANCE at Sep. 30, 2014 | $849.60 | $31.70 | $472.20 | $345.70 |
BALANCE (in shares) at Sep. 30, 2014 | ' | 1,972,052 | ' | ' |
STATEMENTS_OF_CASH_FLOWS
STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Activities: | ' | ' | ' |
Net Income | $33 | $57.40 | $49.40 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ' | ' | ' |
Depreciation, amortization, and accretion | 34.4 | 43.9 | 42.3 |
Deferred income taxes | 4 | 15 | 11.3 |
Gain on sale of assets | -0.7 | -10.9 | 0 |
Other | 2 | 14.1 | 10.8 |
Changes in assets and liabilities: | ' | ' | ' |
Accounts receivable - net | 26.4 | -23.2 | -13.5 |
Inventories | -11.8 | 0 | 10.5 |
Accounts payable | -13.6 | -2.5 | -5.9 |
Advance customer billings | 37.1 | 40.5 | -57.8 |
Income tax receivable | 3.5 | -0.9 | 7 |
Pension and other postretirement benefit contributions | -1.6 | -6.1 | -2.7 |
Other assets and liabilities | 2.3 | 2.7 | -8.7 |
Net cash provided by operating activities | 115 | 130 | 42.7 |
Investing Activities: | ' | ' | ' |
Capital expenditures | -46.2 | -86 | -69.9 |
Proceeds from sale of assets | 0.8 | 13.8 | 0 |
Other, net | 0 | 0 | -3.2 |
Net cash used in investing activities | -45.4 | -72.2 | -73.1 |
Financing Activities: | ' | ' | ' |
Reduction of long-term debt | -0.1 | -0.1 | -0.2 |
(Repayment) issuance of notes payable - net | -34 | -27 | 62 |
Debt issuance costs | -0.6 | 0 | 0 |
Dividends paid | -37.4 | -33.3 | -33.6 |
Repayment of advances from affiliates | 5.1 | 0 | 0 |
Net cash (used in) provided by financing activities | -67 | -60.4 | 28.2 |
Net Increase (Decrease) in Cash and Cash Equivalents | 2.6 | -2.6 | -2.2 |
Cash and Cash Equivalents at Beginning of Year | 3 | 5.6 | 7.8 |
Cash and Cash Equivalents at End of Year | $5.60 | $3 | $5.60 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended | |
Sep. 30, 2014 | ||
Accounting Policies [Abstract] | ' | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Alabama Gas Corporation (the Company or Alagasco) is engaged in the purchase, distribution and sale of natural gas principally in central and north Alabama and is headquartered in Birmingham, Alabama. The Company provides residential, commercial and industrial customers with safe and reliable natural gas service. Due to the seasonal nature of the Company, earnings are typically concentrated during the heating season of November through April each calendar year. The Company operates as a single reporting segment. The accompanying financial statements have been prepared in accordance with GAAP. | ||
On September 2, 2014 the Company was acquired by The Laclede Group, Inc. (Laclede Group) for approximately $1,600.0, including the assumption of $250.0 of long-term debt, from Energen Corporation (Energen), with an effective time under the SPA of 11:59 p.m. on August 31, 2014. Prior to the acquisition the Company was a wholly owned subsidiary of Energen. Subsequent to the acquisition, the Company became a wholly owned subsidiary of Laclede Group, see Note 2, Acquisition. | ||
Effective September 2, 2014, the Company amended its bylaws, to change the Company’s fiscal year from beginning January 1st and ending on December 31st, to beginning October 1st and ending on September 30th. As a result, the financial statements accompanying these Notes cover the period from January 1, 2014 through September 30, 2014 (the “transition period”) and are included in the Company’s transition report on form 10-K for such period. Subsequent to such report, the Company’s annual reports on Form 10-K will cover the fiscal year October 1st to September 30th. The period beginning January 1, 2013 through December 31, 2013 is referred to as “calendar 2013” and the period beginning January 1, 2012 through December 31, 2012 as “calendar 2012”. | ||
Use of Estimates - The preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. | ||
Utility Plant and Depreciation - Utility plant is stated at original cost. The cost of additions to utility plant includes contracted work, direct labor and materials, allocable overheads, and an allowance for funds used during construction. The costs of units of property retired, replaced, or renewed are removed from utility plant and are charged to accumulated depreciation. Maintenance and repairs of property and replacement and renewal of items determined to be less than units of property are charged to maintenance expenses. Gains and losses on all dispositions of land are recognized at time of disposal. | ||
Depreciation is provided using the composite method of depreciation on a straight-line basis over the estimated useful lives of property at rates approved by the Alabama Public Service Commission (APSC). On June 28, 2010, the APSC approved a reduction in depreciation rates, effective June 1, 2010, with the revised prospective composite depreciation rate approximating 3.1%. The Company anticipates refunding approximately $13.4 of refundable negative salvage costs through lower tariff rates over the next twelve months related to the lower depreciation rates. | ||
Asset Retirement Obligations - The Company records legal obligations associated with the retirement of long-lived assets in the period in which the obligations are incurred, if sufficient information exists to reasonably estimate the fair value of the obligations. Obligations are recorded as both a cost of the related long-lived asset and as a corresponding liability. Subsequently, the asset retirement costs are depreciated over the life of the asset and the asset retirement obligations are accreted to the expected settlement amounts. The Company records asset retirement obligations associated with certain safety requirements to purge and seal gas distribution mains upon retirement, the plugging and abandonment of storage wells and other storage facilities, specific service line obligations, and certain removal and disposal obligations related to components of the Company’s distribution system and general plant. Such accruals are provided for through depreciation expense and are recorded with corresponding credits to regulatory liabilities. The costs associated with asset retirement obligations are either currently being recovered in rates or are probable of recovery in future rates. | ||
Regulated Operations - The Company accounts for its regulated operations in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 980, “Regulated Operations.” This Topic sets forth the application of GAAP for those companies whose rates are established by or are subject to approval by an independent third party regulator. The provisions of this accounting guidance require, among other things, that financial statements of a regulated enterprise reflect the actions of regulators, where appropriate. These actions may result in the recognition of revenues and expenses in time periods that are different than non-regulated enterprises. When this occurs, costs are deferred as assets in the balance sheet (regulatory assets) and recorded as expenses when those amounts are reflected in rates. Also, regulators can impose liabilities upon a regulated company for amounts previously collected from customers and for recovery of costs that are expected to be incurred in the future (regulatory liabilities). Management believes that the current regulatory environment supports the continued use of these regulatory accounting principles and that all regulatory assets and regulatory liabilities are recoverable or refundable through the regulatory process. See additional discussion on regulated operations in Note 3 - Regulatory Matters and Note 12 - Regulatory Assets and Liabilities. | ||
Natural Gas Stored Underground - Inventory of natural gas in storage is stated at average cost. | ||
Revenue Recognition and Gas Costs - The Company records natural gas distribution revenues in accordance with the tariff established by the APSC. The margin and gas costs on service delivered to cycle customers but not yet billed are recorded in current assets as accounts receivable with a corresponding regulatory liability. Gas imbalances are settled on a monthly basis. Alagasco had no material imbalances at September 30, 2014 and December 31, 2013. | ||
Gas Supply Adjustment - The Company’s rate schedules for natural gas distribution charges contain a Gas Supply Adjustment (GSA) rider, established in 1993, which permits the pass-through to customers of changes in the cost of gas supply. The Company’s tariff provides a temperature adjustment mechanism, also included in the GSA that is designed to moderate the impact of departures from normal temperatures on the Company’s earnings. The temperature adjustment applies primarily to residential, small commercial and small industrial customers. Other non-temperature weather related conditions that may affect customer usage are not included in the temperature adjustment. In prior years, Alagasco entered into cash flow derivative commodity instruments to hedge its exposure to price fluctuations on its gas supply. Alagasco recognizes all derivatives at fair value as either assets or liabilities on the balance sheet. Any realized gains or losses are passed through to customers using the mechanisms of the GSA rider in accordance with Alagasco’s APSC approved tariff and are recognized as a regulatory asset or regulatory liability. | ||
Income Taxes - The Company uses the asset and liability method of accounting for income taxes. Under this method, a deferred tax asset or liability is recognized for the estimated future tax effects attributable to temporary differences between the financial statement basis and the tax basis of assets and liabilities, as well as tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period of the change. | ||
Gross Receipts Taxes, Franchise Fees and Sales Taxes - Gross receipts taxes and franchise fees associated with the Company’s natural gas utility services are imposed on the Company and billed to its customers. These amounts are recorded gross in the Company’s Statements of Income. Amounts recorded in the Company’s Operating Revenues were $20.6, $25.9 and $21.5 for the transition period ended September 30, 2014 and the calendar years ended December 31, 2013 and 2012, respectively. Gross receipts taxes and franchise fees are expensed and included in the Taxes, other than income taxes line. Sales taxes imposed on applicable sales are billed to customers. These amounts are not recorded in the Statements of Income, but are recorded as tax collections payable and included in other current liabilities on the balance sheets. | ||
Accounts Receivable and Allowance for Doubtful Accounts - Trade accounts receivable are recorded at the amounts due from customers, including unbilled amounts. Estimates of the collectability of trade accounts receivable are based on historical trends, age of receivables, economic conditions, credit risk of specific customers, and other factors. Accounts receivable are written off against the allowance for doubtful accounts when they are deemed to be uncollectible. | ||
Group Medical, General Liability and Workers’ Compensation Reserves - The Company self-insures its group medical, general liability and workers’ compensation costs and carries stop-loss coverage in relation to medical claims, general liability and workers’ compensation claims. Reserves for amounts incurred but not reported are established based on historical cost levels and lags between occurrences and reporting. | ||
Fair Value Measurements - Certain assets and liabilities are recognized or disclosed at fair value, which is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). GAAP establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. | ||
The levels of the hierarchy are described below: | ||
• | Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities. | |
• | Level 2 - Pricing inputs other than quoted prices included within Level 1, which are either directly or indirectly observable for the asset or liability as of the reporting date. These inputs are derived principally from, or corroborated by, observable market data. | |
• | Level 3 - Pricing that is based upon inputs that are generally unobservable that are based on the best information available and reflect management’s assumptions about how market participants would price the asset or liability. | |
Assessment of the significance of a particular input to the fair value measurements may require judgment and may affect the valuation of the asset or liability and its placement within the fair value hierarchy. Additional information about fair value measurements is provided in Note 6, Pension Plans and Other Postretirement Benefits and Note 8, Financial Instruments and Risk Management. | ||
New Accounting Standard - In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. This standard is intended to improve the financial reporting requirements for revenue from contracts with customers by providing a principles-based approach to the recognition of revenue. The core principle of the standard is when an entity transfers goods or services to customers it will recognize revenue in an amount that reflects the consideration the entity expects to be entitled to for those goods or services. The standard outlines a five-step model and related application guidance, which replaces most existing revenue recognition guidance. ASU 2014-09 also requires disclosures that will enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, with early adoption not permitted. The Company has not yet selected a transition method nor has it determined the impact, if any, of the standard on its ongoing financial condition and results of operations. | ||
Reclassifications - Federal and state income taxes were previously presented as a component of total operating expenses and have been reclassified to conform with the current period presentation following income before income taxes in the Statement of Income. |
ACQUISITION
ACQUISITION | 9 Months Ended |
Sep. 30, 2014 | |
Business Combinations [Abstract] | ' |
ACQUISITION | ' |
ACQUISITION | |
On September 2, 2014, Laclede Group acquired all outstanding equity of the Company (the "Transaction") from Energen for approximately $1,600.0, including the assumption of $250.0 of the Company's long-term debt. The consideration is subject to certain post-closing adjustments for cash, indebtedness and working capital which at this time are not expected to be material. The Acquisition was accounted for under the acquisition method of accounting in accordance with ASC 805 (“Topic 805”), “Business Combinations". Laclede Group determined that the Acquisition met the scope exceptions for pushdown accounting, and as such the excess consideration transferred over the fair value of assets acquired was recorded at Laclede Group. Laclede Group and Energen made an election under Section 338(h)(10) of the Internal Revenue Code of 1986, as amended, to treat the Acquisition as a deemed purchase and sale of assets for tax purposes. As a result the existing deferred tax assets and liabilities were remeasured to zero as of September 2, 2014, with a deferred tax asset of $280.1 established for excess tax basis in assets resulting from the election. |
REGULATORY_MATTERS
REGULATORY MATTERS | 9 Months Ended |
Sep. 30, 2014 | |
Regulated Operations [Abstract] | ' |
REGULATORY MATTERS | ' |
REGULATORY MATTERS | |
The Company is subject to regulation by the APSC which established the Rate Stabilization and Equalization (RSE) rate-setting process in 1983. The Company’s current RSE order had an original term extending through December 31, 2014. On December 20, 2013, the APSC issued a final written order modifying the RSE effective January 1, 2014 extending the term of the order beyond September 30, 2018 unless the APSC enters an order to the contrary in a manner consistent with law. In the event of unforeseen circumstances, whether physical or economic, of the nature of the force majeure and including a change in control, the APSC and the Company will consult in good faith with respect to modifications, if any. Effective January 1, 2014, the Company’s allowed range of return on average common equity is 10.5% to 10.95% with an adjusting point of 10.8%. The Company is eligible to receive a performance-based adjustment of 5 basis points to the return on equity adjusting point, based on meeting certain customer satisfaction criteria. The Company's previous allowed return on average common equity was 13.15% to 13.65% through December 31, 2013. | |
Under the RSE, the APSC conducts quarterly reviews to determine whether the Company’s return on average common equity at the end of the Rate Year will be within the allowed range of return. Reductions in rates can be made quarterly to bring the projected return within the allowed range; increases, however, are allowed only once each Rate Year, effective December 1, and cannot exceed 4.0% of prior-year revenues. The Company’s year-end equity under the RSE is limited to 56.5% of total capitalization, subject to certain adjustments. During the transition period ended September 30, 2014 and the calendar years ended December 31, 2013 and 2012, the Company had net pre-tax reductions in revenues of $22.5, $10.6 and $6.3 , respectively, to bring the return on average equity to the midpoint within the allowed range of return. Under the provisions of the RSE, there was no change to revenue effective December 1, 2014. There was an $8.5 decrease, a $10.3 and $7.8 increase in revenue, effective January 1, 2014, December 1, 2013 and 2012, respectively. | |
The inflation-adjusted Cost Control Mechanism (CCM) established by the APSC, allows for annual changes to operations and maintenance (O&M) expense compared to a Base Year, defined as Alagasco’s 2007 actual Rate Year O&M expense, inflation-adjusted to September 30, 2013 using the Consumer Price Index for All Urban Consumer (Base Year O&M). An “Index Range” is established each Rate Year using Base Year O&M, inflation-adjusted using the June Consumer Price Index For All Urban Consumers for that Rate Year plus or minus 1.75% (Index Range). If Rate Year O&M expense falls within the Index Range, no adjustment is required. If Rate Year O&M expense exceeds the Index Range, three quarters of the difference is returned to customers through future rate adjustments. To the extent that Rate Year O&M is less than the Index Range, the utility benefits by one half of the difference through future rate adjustments. Certain items that fluctuate based on situations demonstrated to be beyond the Company’s control may be excluded from the CCM calculation. The Company’s O&M expense fell within the Index Range for the Rate Years ended September 30, 2013, 2012 and 2011. For the Rate Year ended September 30, 2014, the Company’s O&M expense fell below the Index Range resulting in the Company benefitting by one half of the difference, or $2.4 pre-tax, with the related impact to rates effective December 1, 2014. | |
The APSC approved an Enhanced Stability Reserve (ESR) in 1998 which was subsequently modified and expanded in 2010. As currently approved, the ESR provides deferred treatment and recovery for the following: (1) extraordinary O&M expenses related to environmental response costs; (2) extraordinary O&M expenses related to self-insurance costs that exceed $1.0 per occurrence; (3) extraordinary O&M expenses, other than environmental response costs and self-insurance costs, resulting from a single force majeure event or multiple force majeure events greater than $0.3 and $0.4, respectively, during a Rate Year; and (4) negative individual large commercial and industrial customer budget revenue variances that exceed $0.4 during a Rate Year. | |
Charges to the ESR are subject to certain limitations which may disallow deferred treatment and which proscribe the timing of recovery. Current funding of the ESR is provided as a reduction to the refundable negative salvage balance over its nine year term beginning December 1, 2010. Subsequent to the nine year period and subject to APSC authorization, The Company anticipates recovering underfunded ESR balances over a five year amortization period with an annual limitation of $0.7. Amounts in excess of this limitation are deferred for recovery in future years. |
LONGTERM_DEBT_AND_NOTES_PAYABL
LONG-TERM DEBT AND NOTES PAYABLE | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
LONG-TERM DEBT AND NOTES PAYABLE | ' | |||||||
LONG-TERM DEBT AND NOTES PAYABLE | ||||||||
Long-term debt consisted of the following: | ||||||||
($ Millions) | 30-Sep-14 | 31-Dec-13 | ||||||
5.368% Notes, due December 1, 2015 | $ | 80 | $ | 80 | ||||
5.20% Notes, due January 15, 2020 | 40 | 40 | ||||||
3.86% Notes, due December 21, 2021 | 50 | 50 | ||||||
5.70% Notes, due January 15, 2035 | 34.8 | 34.9 | ||||||
5.90% Notes, due January 15, 2037 | 45 | 45 | ||||||
Revolving credit facility | 16 | 50 | ||||||
Total debt | 265.8 | 299.9 | ||||||
Less: current portion | (16.0 | ) | (50.0 | ) | ||||
Total long-term debt | $ | 249.8 | $ | 249.9 | ||||
The aggregate maturities of the Company’s long-term debt for the next five years are as follows: | ||||||||
Years ending September 30, ($ Millions) | ||||||||
2015 | 2016 | 2017 | 2018 | 2019 | 2020 and beyond | |||
$0.00 | $80.00 | $0.00 | $0.00 | $16.00 | $169.80 | |||
The long-term debt and short-term debt agreements of the Company contain financial and nonfinancial covenants including routine matters such as timely payment of principal and interest, maintenance of corporate existence and restrictions on liens. Although none of the agreements have covenants or events of default based on credit ratings, the interest rates applicable to the Company syndicated credit facility discussed below may be adjusted based on credit rating changes. All of the Company’s debt is unsecured. | ||||||||
The Company has authority from the APSC to issue debt securities for up to $35.0. No securities have been issued under this authority. | ||||||||
The Company's Credit Facility | ||||||||
On September 2, 2014 the Company entered into a new syndicated revolving credit facility pursuant to a loan agreement (the Alagasco Loan Agreement) The initial borrowings under the Alagasco Loan Agreement were used to repay the approximately $15.0 of borrowings outstanding under the Company's then existing credit agreement which was terminated in connection with the closing of the Alagasco Loan Agreement. | ||||||||
The Alagasco Loan Agreement is for a term of five years ending September 2, 2019, but the Company may request up to two one-year extensions. The Alagasco Loan Agreement contains nonfinancial covenants, including limitations on certain types of acquisitions, investments and sales of property. The Alagasco Loan Agreement also contains a financial covenant limiting the Company's debt to 70% of its capitalization. At September 30, 2014, this ratio was 24.0%, as defined under the letter of credit. | ||||||||
The Alagasco Loan Agreement has a credit commitment of $150.0. Under certain terms and conditions, the Company may request an increase of up to $50.0 in the credit commitment. The Alagasco Loan Agreement also provides for letters of credit in an aggregate amount up to $15.0, and swingline loans in an aggregate amount up to $15.0. Letters of credit and swingline loans will constitute usage under the Alagasco Loan Agreement. | ||||||||
The Company was in compliance with all covenants at September 30, 2014. | ||||||||
The following is a summary of information relating to the Company credit facility: | ||||||||
($ Millions) | 30-Sep-14 | 31-Dec-13 | ||||||
2014 and 2012 Facilities | (October 2012 Facility) | |||||||
Maximum amount outstanding at any month-end | $ | 55 | $ | 75 | ||||
Average daily amount outstanding | 13.7 | 35 | ||||||
Weighted average interest rates based on: | ||||||||
Average daily amount outstanding | 1.3 | % | 1.12 | % | ||||
Amount outstanding at year-end | 1.16 | % | 1.26 | % | ||||
Total interest expense for the Company was $11.5, $15.6 and $16.3 for the transition period ended September 30, 2014 and the calendar years ended December 31, 2013 and 2012, respectively. |
INCOME_TAXES
INCOME TAXES | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||||||
INCOME TAXES | ' | |||||||||||||||
INCOME TAXES | ||||||||||||||||
The components of the Company’s income taxes consisted of the following: | ||||||||||||||||
Nine Months ended | Calender Year Ended December 31, | |||||||||||||||
($ Millions) | 30-Sep-14 | 2013 | 2012 | |||||||||||||
Taxes estimated to be payable currently: | ||||||||||||||||
Federal | $ | 14.1 | $ | 17.5 | $ | 18.3 | ||||||||||
State | 1.8 | 2.2 | 0.7 | |||||||||||||
Total current | $ | 15.9 | $ | 19.7 | $ | 19 | ||||||||||
Taxes deferred: | ||||||||||||||||
Federal | $ | 3.5 | $ | 13.3 | $ | 9.1 | ||||||||||
State | 0.5 | 1.7 | 2.2 | |||||||||||||
Total deferred | $ | 4 | $ | 15 | $ | 11.3 | ||||||||||
Total income tax expense | $ | 19.9 | $ | 34.7 | $ | 30.3 | ||||||||||
Total income tax expense for the Company differed from the amount that would have been provided by applying the statutory federal income tax rate of 35% to earnings before taxes as illustrated below: | ||||||||||||||||
Nine Months Ended | Calendar Year Ended December 31, | |||||||||||||||
($ Millions) | 30-Sep-14 | 2013 | 2012 | |||||||||||||
Income tax expense at statutory federal income tax rate | $ | 18.5 | $ | 32.2 | $ | 27.9 | ||||||||||
Increase (decrease) resulting from: | ||||||||||||||||
State income taxes, net of federal income tax benefit | 1.5 | 2.6 | 2.3 | |||||||||||||
Other, net | (0.1 | ) | (0.1 | ) | 0.1 | |||||||||||
Total income tax expense | $ | 19.9 | $ | 34.7 | $ | 30.3 | ||||||||||
Effective income tax rate (%) | 37.6 | % | 37.7 | % | 38 | % | ||||||||||
Temporary differences and carryforwards which gave rise to the Company’s deferred tax assets and liabilities were as follows: | ||||||||||||||||
($ Millions) | 30-Sep-14 | 31-Dec-13 | ||||||||||||||
Current | Noncurrent | Current | Noncurrent | |||||||||||||
Deferred tax assets: | ||||||||||||||||
Unbilled and deferred revenue | $ | 2.5 | $ | — | $ | 12.5 | $ | — | ||||||||
Allowance for doubtful accounts | — | — | 1.8 | — | ||||||||||||
Insurance accruals | — | — | 1.8 | — | ||||||||||||
Compensation accruals | — | — | 2.5 | — | ||||||||||||
Inventories | — | — | 1.3 | — | ||||||||||||
Gas supply adjustment related accruals | — | — | 0.7 | — | ||||||||||||
Pension and other costs | — | 10.6 | — | — | ||||||||||||
Goodwill | — | 266.1 | — | — | ||||||||||||
Net operating loss | — | 5.1 | — | — | ||||||||||||
Other | 0.2 | — | 1 | — | ||||||||||||
Total deferred tax assets | $ | 2.7 | $ | 281.8 | $ | 21.6 | $ | — | ||||||||
Deferred tax liabilities: | ||||||||||||||||
Depreciation and basis differences | $ | — | $ | 4 | $ | — | $ | 186.6 | ||||||||
Pension and other costs | — | — | — | 19 | ||||||||||||
Other | 0.4 | — | 1.6 | — | ||||||||||||
Total deferred tax liabilities | 0.4 | 4 | 1.6 | 205.6 | ||||||||||||
Net deferred tax assets (liabilities) | $ | 2.3 | $ | 277.8 | $ | 20 | $ | (205.6 | ) | |||||||
No valuation allowance with respect to deferred taxes is deemed necessary as the Company anticipates generating adequate future taxable income to realize the benefits of all deferred tax assets. | ||||||||||||||||
The Company is part of a consolidated federal income tax return with Laclede Group, from September 2 through September 30, 2014. Prior to September 2, 2014, the Company was part of a consolidated federal and state income tax return with our former parent, Energen. Income taxes are allocated to the Company as if it were a separate taxpayer. Pursuant to GAAP, the Company may recognize the tax benefit from a tax position only if it is at least more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The Company records potential interest and penalties related to its uncertain tax positions as income tax expense. Unrecognized tax benefits, accrued interest payable, and accrued penalties payable are included in the Other line of the Deferred Credits and Other Liabilities section of the Balance Sheets. None of the Company’s unrecognized tax benefits at September 30, 2014 would impact the Company’s effective tax rate, if recognized. | ||||||||||||||||
A reconciliation of the Company’s beginning and ending amount of unrecognized tax benefits is as follows: | ||||||||||||||||
($ Millions) | ||||||||||||||||
Balance as of December 31, 2011 | $ | 0.1 | ||||||||||||||
Additions based on tax positions related to the current year | 0.1 | |||||||||||||||
Additions for tax positions of prior years | 0.2 | |||||||||||||||
Reductions for tax positions of prior years (lapse of statute of limitations) | (0.1 | ) | ||||||||||||||
Balance as of December 31, 2012 | 0.3 | |||||||||||||||
Reductions for tax positions of prior years (lapse of statute of limitations) | — | |||||||||||||||
Balance as of December 31, 2013 | 0.3 | |||||||||||||||
Reductions for transfer of balances to Energen | (0.3 | ) | ||||||||||||||
Balance as of September 30, 2014 | $ | — | ||||||||||||||
The Company’s tax returns for the calendar years 2010-2013 remain open and subject to examination by the IRS and major state taxing jurisdictions. These returns cover periods during which the Company was owned by Energen. As such, the impact of any adjustments made by the relevant taxing authorities would be addressed by Energen. | ||||||||||||||||
In September 2013, the Internal Revenue Service and US Treasury Department released final regulations on the deduction and capitalization of expenditures related to tangible property. The regulations do not address the tax treatment for network | ||||||||||||||||
assets such as natural gas pipelines. These regulations apply to tax years beginning on or after January 1, 2014. The Company is evaluating the effects of the regulations, but does not believe that they will have a significant impact on its financial statements. |
PENSION_PLANS_AND_OTHER_POSTRE
PENSION PLANS AND OTHER POST-RETIREMENT BENEFITS | 9 Months Ended | |||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | ' | |||||||||||||||||
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS | ' | |||||||||||||||||
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS | ||||||||||||||||||
The Company has defined qualified benefit plans covering the majority of its employees. Qualified plan assets are comprised of United States equities consisting of mutual and commingled funds with varying strategies, global equities consisting of mutual funds, alternative investments of limited partnerships and commingled mutual funds and fixed income investments. | ||||||||||||||||||
During the prior year and part of the current year, the Company participated in employee benefit plans with Energen. Effective April 30, 2014, Energen Corporation separated one of its defined benefit non-contributory pension plans into an Energen plan and a separate Alagasco plan. The separation of plan assets and obligations was completed in accordance with ERISA provisions. Also effective April 30, 2014, Energen separated its postretirement health care and life insurance benefit plans into separate plans established for Energen and the Company’s employees in accordance with ERISA provisions. Energen and the Company remeasured all of the aforementioned respective plans using current assumptions. | ||||||||||||||||||
The prior year figures in the following tables, unless explicitly stated otherwise, represent the combined financial information of the defined qualified and nonqualified supplemental benefit plans along with the postretirement health care and life insurance benefit plans prior to the separation of the plans between the Company and Energen. | ||||||||||||||||||
Pension costs in the transition period ended September 30, 2014 and the calendar years ended December 31, 2013 and 2012 amounted to $16.8, $26.6, and $16.4, respectively. | ||||||||||||||||||
The net periodic pension costs include the following components: | ||||||||||||||||||
Nine Months Ended | Calendar Year Ended December 31, | |||||||||||||||||
($ Millions) | 30-Sep-14 | 2013 | 2012 | |||||||||||||||
Pension Plans | ||||||||||||||||||
Components of net periodic benefit cost: | ||||||||||||||||||
Service cost | $ | 5.1 | $ | 14.2 | $ | 10.5 | ||||||||||||
Interest cost | 4.1 | 11.2 | 10.8 | |||||||||||||||
Expected long-term return on assets | (5.2 | ) | (14.7 | ) | (14.1 | ) | ||||||||||||
Prior service cost amortization | 0.1 | 0.5 | 0.6 | |||||||||||||||
Actuarial loss amortization | 2.2 | 14 | 8.6 | |||||||||||||||
Amortization of prior regulatory assets and liabilities | 0.4 | — | — | |||||||||||||||
Settlement charge | 10.1 | 1.4 | — | |||||||||||||||
Net periodic expense | $ | 16.8 | $ | 26.6 | $ | 16.4 | ||||||||||||
Postretirement Benefit Plans | ||||||||||||||||||
Components of net periodic benefit cost: | ||||||||||||||||||
Service cost | $ | 0.4 | $ | 1.7 | $ | 1.9 | ||||||||||||
Interest cost | 1.9 | 3.5 | 4.2 | |||||||||||||||
Expected long-term return on assets | (3.6 | ) | (5.0 | ) | (4.4 | ) | ||||||||||||
Actuarial (gain) loss amortization | (1.0 | ) | (0.1 | ) | — | |||||||||||||
Transition obligation amortization | — | 1.3 | 1.9 | |||||||||||||||
Amortization of prior regulatory assets and liabilities | (0.2 | ) | — | — | ||||||||||||||
Curtailment gain | — | (1.2 | ) | — | ||||||||||||||
Net periodic expense | $ | (2.5 | ) | $ | 0.2 | $ | 3.6 | |||||||||||
Obligations recognized in other comprehensive income were as follows: | ||||||||||||||||||
Nine Months Ended | Calendar Year Ended December 31, | |||||||||||||||||
($ Millions) | 30-Sep-14 | 2013 | 2012 | |||||||||||||||
Pension Plans | ||||||||||||||||||
Net actuarial (gain) loss experienced during the year | $ | 1.5 | $ | (14.1 | ) | $ | 28.7 | |||||||||||
Net actuarial loss recognized as expense | — | (8.9 | ) | (4.9 | ) | |||||||||||||
Prior service cost recognized as expense | — | (0.3 | ) | (0.3 | ) | |||||||||||||
1.5 | (23.3 | ) | 23.5 | |||||||||||||||
Transfer to regulatory assets (liabilities) | (1.5 | ) | — | — | ||||||||||||||
Other Comprehensive Income | $ | — | $ | (23.3 | ) | $ | 23.5 | |||||||||||
Postretirement Benefit Plans | ||||||||||||||||||
Net actuarial (gain) loss experienced during the year | $ | 1.1 | $ | (8.1 | ) | $ | (1.8 | ) | ||||||||||
Net actuarial gain recognized as expense | — | 0.6 | — | |||||||||||||||
Transition obligation recognized as expense | — | (0.3 | ) | (0.3 | ) | |||||||||||||
1.1 | (7.8 | ) | (2.1 | ) | ||||||||||||||
Transfer to regulatory assets (liabilities) | (1.1 | ) | — | — | ||||||||||||||
Other Comprehensive Income | $ | — | $ | (7.8 | ) | $ | (2.1 | ) | ||||||||||
After the Acquisition, the Company began amortizing its existing regulatory assets and liabilities attributable to the pension and postretirement benefits over the average remaining service for active participants as of the date of the Acquisition. Therefore, any new regulatory asset or liability is attributable to the pension or postretirement benefit plans after the date of the Acquisition. The Company recognized a regulatory asset of $72.5 and a regulatory liability of $28.5, when the plans were remeasured at September 1, 2014. | ||||||||||||||||||
During the transition period ended September 30, 2014 and calendar 2013 the Company incurred settlement charges of $0.0 and $0.5 respectively for the payment of lump sums from the nonqualified supplemental retirement plans, of which $0.0 and $0.1 respectively was expensed and $0.0 and $0.4 was recognized as a pension and postretirement asset in regulatory assets at the Company. | ||||||||||||||||||
The following table sets forth the reconciliation of the beginning and ending balances of the pension benefit obligation: | ||||||||||||||||||
September 30, | December 31, | September 30, | December 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
($ MIllions) | Pension | Postretirement Benefits | ||||||||||||||||
Accumulated benefit obligation | $ | 129.6 | $ | 253 | ||||||||||||||
Benefit obligation: | ||||||||||||||||||
Balance at beginning of period | $ | 293.4 | $ | 323.5 | $ | 63.6 | $ | 85.8 | ||||||||||
Energen portion of liability divested | (144.7 | ) | — | (13.3 | ) | — | ||||||||||||
Liability loss due to estimated allocation | 16.9 | — | 7.7 | — | ||||||||||||||
Service cost | 5.1 | 14.2 | 0.4 | 1.7 | ||||||||||||||
Interest cost | 4.1 | 11.2 | 1.9 | 3.5 | ||||||||||||||
Actuarial (gain) loss | 7.8 | (28.3 | ) | 4.3 | (21.7 | ) | ||||||||||||
Curtailment gain | — | (4.2 | ) | — | (1.3 | ) | ||||||||||||
Retiree drug subsidy program | — | — | 0.3 | 0.3 | ||||||||||||||
Benefits paid | (33.8 | ) | (23.0 | ) | (4.0 | ) | (4.7 | ) | ||||||||||
Balance at end of period | $ | 148.8 | $ | 293.4 | $ | 60.9 | $ | 63.6 | ||||||||||
The following table sets forth the reconciliation of the beginning and ending balances of the fair value of plan assets: | ||||||||||||||||||
September 30, | December 31, | September 30, | December 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
($ Millions) | Pension | Postretirement Benefits | ||||||||||||||||
Plan assets: | ||||||||||||||||||
Fair value of plan assets at beginning of period | $ | 219.5 | $ | 209.3 | $ | 98.9 | $ | 87.1 | ||||||||||
Energen portion of assets divested | (90.9 | ) | — | (22.0 | ) | — | ||||||||||||
Asset gain due to estimated allocation | 15 | — | 11 | — | ||||||||||||||
Actual return on plan assets | 7.8 | 23 | 1.4 | 14.9 | ||||||||||||||
Employer contributions | 1.6 | 10.2 | 0.3 | 1.6 | ||||||||||||||
Benefits paid | (33.8 | ) | (23.0 | ) | (4.0 | ) | (4.7 | ) | ||||||||||
Fair value of plan assets at end of period | $ | 119.2 | $ | 219.5 | $ | 85.6 | $ | 98.9 | ||||||||||
(Unfunded) funded status of plan | $ | (29.6 | ) | $ | (73.8 | ) | $ | 24.7 | $ | 35.4 | ||||||||
The following table sets forth the amounts recognized in the Balance Sheets: | ||||||||||||||||||
September 30, | December 31, | September 30, | December 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
($ Millions) | Pension | Postretirement Benefits | ||||||||||||||||
Noncurrent assets | $ | — | $ | — | $ | 24.7 | $ | 35.4 | ||||||||||
Current liabilities | — | (6.1 | ) | — | — | |||||||||||||
Noncurrent liabilities | (29.6 | ) | (67.7 | ) | — | — | ||||||||||||
Net asset (liability) recognized | $ | (29.6 | ) | $ | (73.8 | ) | $ | 24.7 | $ | 35.4 | ||||||||
A summary of the Company's allocated share of the benefit plans described above is presented below as of the transition period and calendar year end, respectively: | ||||||||||||||||||
September 30, | December 31, | September 30, | December 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
($ MIllions) | Pension | Postretirement Benefits | ||||||||||||||||
Net benefit asset noncurrent | $ | — | $ | — | $ | 24.7 | $ | 26.5 | ||||||||||
Net benefit liability noncurrent | (29.6 | ) | (20.2 | ) | — | — | ||||||||||||
Regulatory asset | 67.8 | 58.5 | 4.7 | — | ||||||||||||||
Regulatory liability | $ | (1.9 | ) | $ | — | $ | (26.6 | ) | $ | (26.2 | ) | |||||||
The pension regulatory assets and liabilities are allowed to be recovered or refunded through rates in subsequent years. | ||||||||||||||||||
Assumptions are used based on the unique set of characteristics for each of the individual pension and postretirement plans. | ||||||||||||||||||
Nine Months Ended | Calendar Years Ended December 31, | |||||||||||||||||
30-Sep-14 | 2013 | 2012 | ||||||||||||||||
Pension Plans | ||||||||||||||||||
Discount rate | 4.00% & 4.05% | 3.63 | % | 4.52 | % | |||||||||||||
Expected long-term return on plan assets | 7.25% & 7.00% | 7 | % | 7 | % | |||||||||||||
Rate of compensation increase for pay-related plans | 2.92 | % | 3.71 | % | 3.59 | % | ||||||||||||
Postretirement Benefit Plans | ||||||||||||||||||
Discount rate | 4.25 | % | 4.26 | % | 4.95 | % | ||||||||||||
Expected long-term return on plan assets | 7.25% & 4.75% | 7 | % | 7 | % | |||||||||||||
The weighted average rate assumptions used to determine the projected benefit obligations at the measurement date were as follows: | ||||||||||||||||||
30-Sep-14 | 31-Dec-13 | |||||||||||||||||
Pension Plans | ||||||||||||||||||
Discount rate | 4.15% & 4.25% | 4.3 | % | |||||||||||||||
Rate of compensation increase for pay-related plans | 2.92 | % | 3.6 | % | ||||||||||||||
Postretirement Benefit Plans | ||||||||||||||||||
Discount rate | 4.4 | % | 5 | % | ||||||||||||||
The assumed post-65 health care cost trend rates used to determine the postretirement benefit obligation at the measurement date were as follows: | ||||||||||||||||||
30-Sep-14 | 31-Dec-13 | |||||||||||||||||
Health care cost trend rate assumed for next year | 7.25 | % | 6.5 | % | ||||||||||||||
Rate to which the cost trend rate is assumed to decline | 5 | % | 5 | % | ||||||||||||||
Year that rate reaches ultimate rate | 2020 | 2020 | ||||||||||||||||
Assumed health care cost trend rates used in determining the accumulated postretirement benefit obligation have an effect on the amounts reported. For example, revising the weighted average health care cost trend rate by 1 percentage point would have the following effects: | ||||||||||||||||||
($ Millions) | 1-Percentage Point Decrease | 1-Percentage Point Increase | ||||||||||||||||
Effect on total of service and interest cost | $ | — | $ | — | ||||||||||||||
Effect on net postretirement benefit obligation | (0.7 | ) | 0.7 | |||||||||||||||
Following are the targeted and actual plan assets by asset category: | ||||||||||||||||||
Pension | Postretirement Benefits | |||||||||||||||||
Target | 30-Sep-14 | 31-Dec-13 | Target | 30-Sep-14 | 31-Dec-13 | |||||||||||||
Asset category: | ||||||||||||||||||
Equity securities | 41 | % | 51 | % | 34 | % | 60 | % | 60 | % | 61 | % | ||||||
Debt securities | 38 | % | 36 | % | 28 | % | 40 | % | 40 | % | 39 | % | ||||||
Other | 21 | % | 13 | % | 38 | % | — | % | — | % | — | % | ||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||
The Company employs a total return investment approach whereby a mix of equities and fixed income investments are used to maximize the long-term return of plan assets with a prudent level of risk. Risk tolerance is established through consideration of plan liabilities, plan funded status, corporate financial condition and market conditions. | ||||||||||||||||||
The Company has developed an investment strategy that focuses on asset allocation, diversification and quality guidelines. The investment goals are to obtain an adequate level of return to meet future obligations of the plan by providing above average risk-adjusted returns with a risk exposure in the mid-range of comparable funds. Investment managers are retained by the Company to manage separate pools of assets. Funds are allocated to such managers in order to achieve an appropriate, diversified, and balanced asset mix. Comparative market and peer group benchmarks are utilized to ensure that investment managers are performing satisfactorily. | ||||||||||||||||||
The Company seeks to maintain an appropriate level of diversification to minimize the risk of large losses in a single asset class. Accordingly, plan assets for the pension plans and the postretirement health care and life insurance benefit plan do not have a concentration of assets in a single entity, industry, country, commodity or class of investment fund. | ||||||||||||||||||
Equity securities for pension and postretirement benefits do not include the Laclede Group's common stock. | ||||||||||||||||||
Plan assets included in the funded status of the pension plans were as follows: | ||||||||||||||||||
30-Sep-14 | ||||||||||||||||||
($ Millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
United States equities (1) | $ | 30.4 | $ | 13.6 | $ | — | $ | 44 | ||||||||||
Global equities (2) | 12.3 | 0 | — | 12.3 | ||||||||||||||
Fixed income (3) | 11.5 | 31.9 | — | 43.4 | ||||||||||||||
Alternative investments (4) | — | 17.6 | — | 17.6 | ||||||||||||||
Cash and cash equivalents | 0.3 | 1.6 | — | 1.9 | ||||||||||||||
Total | $ | 54.5 | $ | 64.7 | $ | — | $ | 119.2 | ||||||||||
31-Dec-13 | ||||||||||||||||||
($ Millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
United States equities (1) | $ | 34.1 | $ | 8.1 | $ | — | $ | 42.2 | ||||||||||
Global equities (2) | 20.1 | 13.3 | — | 33.4 | ||||||||||||||
Fixed income (3) | — | 61.1 | — | 61.1 | ||||||||||||||
Alternative investments (4) | — | 37.3 | — | 37.3 | ||||||||||||||
Cash and cash equivalents | 6 | 39.5 | — | 45.5 | ||||||||||||||
Total | $ | 60.2 | $ | 159.3 | $ | — | $ | 219.5 | ||||||||||
(1) United States equities consist of mutual and commingled funds with varying strategies. Such strategies include stock investments across market capitalizations and investment styles. | ||||||||||||||||||
(2) Global equities consist of mutual funds and a limited partnership that invest in United States and non-United States securities broadly diversified across mostly developed markets but with some tactical exposure to emerging markets. | ||||||||||||||||||
(3) Fixed income securities consist of mutual funds and separate accounts. Fixed income securities are well diversified with allocations to investment grade and non-investment grade issues and issues that provide both intermediate and longer duration exposure. | ||||||||||||||||||
(4) Alternative investments consist of limited partnerships and commingled and mutual funds with varying investment strategies. Alternative investments are meant to serve as a risk reducer at the total portfolio level as they provide asset class exposures not found elsewhere in the portfolio. | ||||||||||||||||||
The following is a reconciliation of plan assets in Level 3 of the fair value hierarchy: | ||||||||||||||||||
Nine Months Ending September 30, | Calendar Year Ending December 31, | |||||||||||||||||
($ Millions) | 2014 | 2013 | ||||||||||||||||
Balance at beginning of period | $ | — | $ | 14.5 | ||||||||||||||
Transfer out of level 3 | — | (14.5 | ) | |||||||||||||||
Balance at end of period | $ | — | $ | — | ||||||||||||||
Plan assets included in the funded status of the postretirement benefit plans were as follows: | ||||||||||||||||||
30-Sep-14 | ||||||||||||||||||
($ Millions) | Level 1 | Level 2 | Total | |||||||||||||||
United States equities (1) | $ | 43.9 | $ | — | $ | 43.9 | ||||||||||||
Global equities (2) | 7.2 | — | 7.2 | |||||||||||||||
Fixed income (3) | — | 34.4 | 34.4 | |||||||||||||||
Cash and cash equivalents | 0.1 | — | 0.1 | |||||||||||||||
Total | $ | 51.2 | $ | 34.4 | $ | 85.6 | ||||||||||||
31-Dec-13 | ||||||||||||||||||
($ Millions) | Level 1 | Level 2 | Total | |||||||||||||||
United States equities | $ | 43.1 | $ | — | $ | 43.1 | ||||||||||||
Global equities | 17 | — | 17 | |||||||||||||||
Fixed income | — | 38.8 | 38.8 | |||||||||||||||
Cash and cash equivalents | — | — | — | |||||||||||||||
Total | $ | 60.1 | $ | 38.8 | $ | 98.9 | ||||||||||||
(1) United States equities consists of mutual funds with varying strategies. These funds invest largely in medium to large capitalized companies with exposure blending growth, market-oriented and value styles. Additional fund investments include small capitalization companies, and certain of these funds utilize tax-sensitive management approaches. | ||||||||||||||||||
(2) Global equities are mutual funds that invest in non-United States securities broadly diversified across most developed markets with exposure blending growth, market-oriented and value styles. | ||||||||||||||||||
(3)Fixed income securities are high-quality short-duration securities including investment-grade market sectors with tactical investments in non-investment grade sectors. | ||||||||||||||||||
The following benefit payments, which reflect expected future service, as appropriate, are anticipated to be paid as follows. In addition, the following benefits reflect the expected prescription drug subsidy related to the Medicare Prescription Drug, Improvement and Modernization Act of 2003 (Act). The Act includes a prescription drug benefit under Medicare Part D as well as a federal subsidy which began in 2007: | ||||||||||||||||||
($ Millions) | Pension Benefits | Postretirement Benefits | Postretirement Benefits – Prescription Drug Subsidy | |||||||||||||||
2015 | $ | 9.9 | $ | 3.8 | $ | (0.2 | ) | |||||||||||
2016 | 10.2 | 3.8 | (0.2 | ) | ||||||||||||||
2017 | 10.6 | 3.8 | (0.2 | ) | ||||||||||||||
2018 | 10.6 | 3.8 | (0.2 | ) | ||||||||||||||
2019 | 11.2 | 3.8 | (0.3 | ) | ||||||||||||||
2020-2024 | 58.7 | 18.6 | (1.3 | ) | ||||||||||||||
There are no required contributions to the qualified pension plans during 2015. Additionally, it is not anticipated that the funded status of the qualified pension plans will fall below statutory thresholds requiring accelerated funding or constraints on benefit levels or plan administration. During fiscal 2015 the Company may make additional discretionary contributions to the qualified pension plans depending on the amount and timing of employee retirements and market conditions. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended | |||||
Sep. 30, 2014 | ||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||
COMMITMENTS AND CONTINGENCIES | ' | |||||
COMMITMENTS AND CONTINGENCIES | ||||||
Commitments and Agreements: | ||||||
Certain of the Company’s long-term contracts associated with the delivery and storage of natural gas include fixed charges of approximately $134.0 through September 2024. During the transition period ended September 30, 2014 and the calendar years ended December 31, 2013 and 2012, the Company recognized approximately $33.8, $50.0 and $51.0, respectively, of current year commitments through expense and its regulatory accounts in the accompanying financial statements. The Company also is committed to purchase minimum quantities of gas at market-related prices or to pay certain costs in the event the minimum quantities are not taken. These purchase commitments are approximately 111 bcf through August 2020. | ||||||
Environmental Matters: | ||||||
Various environmental laws and regulations apply to the operations of the Company. Historically, the cost of environmental compliance has not materially affected the Company’s financial position, results of operations or cash flows. New regulations, enforcement policies, claims for damages or other events could result in significant unanticipated costs. | ||||||
The Company is in the chain of title of nine former manufactured gas plant sites, four of which it still owns, and five former manufactured gas distribution sites, one of which it still owns. Management expects that, should future remediation of the sites be required, the Company’s share of the remediation costs will not materially affect the financial position of the Company. During 2011, a removal action was completed at the Huntsville, Alabama manufactured gas plant site pursuant to an Administrative Settlement Agreement and Order on Consent among the EPA, the Company and the current site owner. | ||||||
In 2012, the Company responded to a U.S. Environmental Protection Agency (EPA) Request for Information Pursuant to Section 104 of Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) relating to the 35th Avenue Superfund Site located in North Birmingham, Jefferson County, Alabama. The Request related to a former site of a manufactured gas distribution facility owned by the Company and located in the vicinity of the 35th Avenue Superfund Site. In September 2013, the Company received from the EPA a General Notice Letter and Invitation to Conduct a Removal Action at the 35th Avenue Superfund Site. The letter identifies the Company as a Potentially Responsible Party (PRP) under CERCLA for the cleanup of the Site or costs the EPA incurs in cleaning up the Site. The EPA also offered the PRP group the opportunity to conduct Phase I of the proposed removal action which involved removal activities at approximately 50 residences that purportedly exceed certain risk levels for contamination. In August of 2014, the EPA offered the PRP group the opportunity to conduct Phase II of the proposed removal action which involved removal activities at approximately 30 additional residences that purportedly exceed certain risk levels for contamination. The Company has discussed its designation as a PRP with the EPA, and the Company has requested additional information from the EPA regarding its designation as a PRP. The Company has not been provided information at this time that would allow it to determine the extent, if any, of its potential liability with respect to the 35th Avenue Superfund Site and the proposed removal action; therefore, no amount has been accrued as of September 30, 2014. | ||||||
Legal Matters: | ||||||
The Company, from time to time, is party to various pending or threatened legal proceedings. Certain of these lawsuits include claims for punitive damages in addition to other specified relief. The Company recognizes its liability for contingencies when information available indicates both a loss is probable and the amount of the loss can be reasonably estimated. Based upon information presently available, and in light of available legal and other defenses, contingent liabilities arising from threatened and pending litigation are not considered material in relation to the respective financial position of the Company. It should be noted, however, that there is uncertainty in the valuation of pending claims and prediction of litigation results. | ||||||
On December 17, 2013, an incident occurred at a Housing Authority apartment complex in Birmingham, Alabama which resulted in one fatality, personal injuries and property damage. The Company is cooperating with the National Transportation and Safety Board which is investigating the incident. The Company has been named as a defendant in several lawsuits arising from the incident and additional lawsuits and claims may be filed against the Company. | ||||||
Lease Obligations: | ||||||
The Company entered into an amendment to its lease for its primary offices in February 2013 with a term ending February 28, 2018. There is no renewal option. This lease is classified as an operating lease. The Company also has a lease obligation for additional office space which expires January 31, 2024. Under the terms of this lease, the Company has five renewal options to extend the lease term by five years under each renewal. This lease is accounted for as an operating lease. The Company has subleased all of this office space to Energen pursuant to a sublease that expires on December 31, 2019 with an option to extend through January 31, 2024. | ||||||
The Company’s total payments related to leases included as operating expense were $1.8, $2.4 and $2.1 for the transition period ended September 30, 2014 and the calendar years ended December 31, 2013 and 2012, respectively. These amounts are net of approximately $0.0, $0.7 and $1.0 of sublease income in the transition period ended September 30, 2014 and the calendar years ended December 31, 2013 and 2012, respectively. Minimum future rental payments required after September 30, 2014 under leases with initial or remaining noncancelable lease terms in excess of one year are as follows: | ||||||
($ Millions) | ||||||
2015 | 2016 | 2017 | 2018 | 2019 | 2020 and thereafter | |
4.3 | 3.9 | 4 | 2.9 | 2.1 | 9.1 | |
Included in the table above are approximately $11.0 of payments associated with subleasing of its previous headquarters, which are expected to be reimbursed to the Company by Energen through the remaining term of the related lease. |
FINANCIAL_INSTRUMENTS_AND_RISK
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT | 9 Months Ended |
Sep. 30, 2014 | |
Fair Value Disclosures [Abstract] | ' |
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT | ' |
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT | |
Financial Instruments: | |
The stated value of cash and cash equivalents, short-term investments, trade receivables (net of allowance), and short-term debt approximates fair value due to the short maturity of the instruments. The fair value of the Company’s fixed-rate long-term debt, including the current portion, approximates $266.4 and $258.8 and has a carrying value of $249.8 and $249.9 at September 30, 2014 and December 31, 2013, respectively. The fair values were based on market prices of similar instruments having the same remaining maturities, redemption terms and credit rating. Short-term debt is classified as Level 1 fair value and long-term debt is classified as Level 2 fair value. | |
The Company purchases gas as an agent for certain of its large commercial and industrial customers. The Company has, in certain instances, provided commodity-related guarantees to counterparties in order to facilitate these agency purchases. Liabilities existing for gas delivered to customers subject to these guarantees are included in the balance sheet. In the event the customer for whom the guarantee was entered fails to take delivery of the gas, the Company can sell such gas for the customer, with the customer liable for any resulting loss. Although the substantial majority of purchases under these guarantees are for the customers’ current monthly consumption and are at current market prices, in some instances, the purchases are for an extended term at a fixed price. At September 30, 2014, the fixed price purchases under these guarantees had a maximum term outstanding through August 2015 with an aggregate purchase price of $0.6 and a market value of $0.6. | |
Finance Receivables: | |
The Company finances third party contractor sales of merchandise including gas furnaces and appliances. At September 30, 2014 and December 31, 2013, the Company’s finance receivable totaled approximately $10.9 and $10.8, respectively. Financing is available only to qualified customers who meet creditworthiness thresholds for customer payment history and external agency credit reports. The Company relies upon ongoing payments as the primary indicator of credit quality during the term of each contract. The allowance for credit losses is recognized using an estimate of write-off percentages based on historical experience applied to an aging of the finance receivable balance. Delinquent accounts are evaluated on a case-by-case basis and, absent evidence of debt repayment after 90 days, are due in full and assigned to a third party collection agency. The remaining finance receivable is written off approximately 12 months after being assigned to the third party collection agency. The Company had finance receivables past due 90 days or more of $0.3 and $0.4 as of September 30, 2014 and December 31, 2013, respectively. The Company recorded an allowance for credit losses at September 30, 2014 and December 31, 2013 of $0.3 and $0.4, respectively. | |
Concentration of Credit Risk: | |
Natural gas distribution operating revenues and related accounts receivable are generated from state-regulated utility natural gas sales and transportation to approximately 423,000 residential, commercial and industrial customers located in central and north Alabama. A change in economic conditions may affect the ability of customers to meet their obligations; however, the Company believes that its provision for possible losses on uncollectible accounts receivable is adequate for its credit loss exposure. |
ASSET_RETIREMENT_OBLIGATIONS
ASSET RETIREMENT OBLIGATIONS | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Asset Retirement Obligation Disclosure [Abstract] | ' | ||||||||
ASSET RETIREMENT OBLIGATIONS | ' | ||||||||
ASSET RETIREMENT OBLIGATIONS | |||||||||
The Company recognizes conditional obligations if such obligations can be reasonably estimated and a legal requirement to perform an asset retirement activity exists. The Company accrues removal costs on certain gas distribution assets over the useful lives of its property, plant and equipment through depreciation expense in accordance with rates approved by the APSC. The Company recorded a conditional asset retirement obligation, on a discounted basis, of $27.7 and $27.5 to purge and cap its gas pipelines upon abandonment and to remediate other related obligations, as a regulatory liability as of September 30, 2014 and December 31, 2013, respectively. Regulatory assets for rate recovery of accumulated asset removal costs of $2.8 and $4.6 as of September 30, 2014 and December 31, 2013, respectively, are included as regulatory assets in noncurrent assets on the balance sheets. The costs associated with asset retirement obligations are either currently being recovered in rates or are probable of recovery in future rates. | |||||||||
The following table presents a reconciliation of the beginning and ending balances of asset retirement obligations at September 30, 2014 and December 31, 2013 as reported in the Balance Sheet: | |||||||||
($ Millions) | September 30, | December 31, | |||||||
2014 | 2013 | ||||||||
Asset retirement obligations, beginning of year | $ | 27.5 | $ | 24.9 | |||||
Liabilities incurred during the period | 0.5 | 0.8 | |||||||
Liabilities settled during the period | (0.1 | ) | (0.1 | ) | |||||
Accretion | 0.7 | 1.3 | |||||||
Revisions in estimated cash flows | (0.9 | ) | 0.6 | ||||||
Asset retirement obligations, end of year | $ | 27.7 | $ | 27.5 | |||||
SUPPLEMENTAL_CASH_FLOW_INFORMA
SUPPLEMENTAL CASH FLOW INFORMATION | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Supplemental Cash Flow Elements [Abstract] | ' | |||||||||||
SUPPLEMENTAL CASH FLOW INFORMATION | ' | |||||||||||
SUPPLEMENTAL CASH FLOW INFORMATION | ||||||||||||
Supplemental information concerning the Company’s cash flow activities was as follows: | ||||||||||||
Nine Months Ended | Calendar Years Ended December 31, | |||||||||||
($ Millions) | 30-Sep-14 | 2013 | 2012 | |||||||||
Interest paid, net of amount capitalized | $ | 9.6 | $ | 13.5 | $ | 13.5 | ||||||
Income taxes paid | 20.4 | 23.1 | 16.8 | |||||||||
Interest expense on affiliated company debt, net | — | — | 0.3 | |||||||||
Non-cash investing activities: | ||||||||||||
Accrued property, plant and equipment costs | 5 | 5.5 | 3.5 | |||||||||
Non cash activities related to capitalized depreciation, capitalized asset retirement obligation costs and allowance for funds used during construction were not significant for the transition period ended September 30, 2014 and the calendar years ended December 31, 2013 and 2012. |
ACQUISITION_AND_DISPOSITION_OF
ACQUISITION AND DISPOSITION OF PROPERTIES | 9 Months Ended |
Sep. 30, 2014 | |
Leases [Abstract] | ' |
ACQUISITION AND DISPOSITION OF PROPERTIES | ' |
ACQUISITION AND DISPOSITION OF PROPERTIES | |
In August 2013, the Company recorded a pre-tax gain of $10.9 related to the sale of its Metro Operations Center, which is located in Birmingham, Alabama, and has been in service since the 1940s. The Company received approximately $13.8 in cash from the sale of this property. During the third calendar quarter of 2013, the gain on the sale was recognized in other income and a related reduction in revenues was recognized to defer the gain as a regulatory liability pending review by the APSC. In conjunction with the receipt of the rate order from the APSC on December 20, 2013, the Company recognized the deferred revenues from this sale in the fourth calendar quarter of 2013. Effective upon the sale of the Metro Operations Center, the Company leased the facility from the purchaser for a period of approximately 20 months. |
REGULATORY_ASSETS_AND_LIABILIT
REGULATORY ASSETS AND LIABILITIES | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Regulated Operations [Abstract] | ' | |||||||||||||||
REGULATORY ASSETS AND LIABILITIES | ' | |||||||||||||||
REGULATORY ASSETS AND LIABILITIES | ||||||||||||||||
The Company accounts for regulated operations in accordance with ASC Topic 980, Regulated Operations. This topic sets forth the application of GAAP for those companies whose rates are established by or are subject to approval by an independent third party regulator. The provisions of this accounting guidance require, among other things, that financial statements of a regulated enterprise reflect the actions of regulators, where appropriate. These actions may result in the recognition of revenues and expenses in time periods that are different than non-regulated enterprises. When this occurs, costs are deferred as assets in the balance sheet (regulatory assets) and recorded as expenses when those amounts are reflected in rates. Also, regulators can impose liabilities upon a regulated company for amounts previously collected from customers and for recovery of costs that are expected to be incurred in the future (regulatory liabilities). | ||||||||||||||||
The following regulatory assets and regulatory liabilities were reflected in the Company's Balance Sheets and also included below: | ||||||||||||||||
30-Sep-14 | 31-Dec-13 | |||||||||||||||
($ Millions) | Current | Noncurrent | Current | Noncurrent | ||||||||||||
Regulatory assets: | ||||||||||||||||
Postretirement assets | $ | 6.4 | $ | 66.1 | $ | 0.3 | $ | 58.2 | ||||||||
Accretion and depreciation for asset retirement obligation | — | 18.3 | — | 18 | ||||||||||||
Rate recovery of asset removal costs, net | — | 2.8 | — | 4.7 | ||||||||||||
Enhanced stability reserve | — | 3.4 | — | 4 | ||||||||||||
Gas supply adjustment | — | — | 2.5 | — | ||||||||||||
RSE adjustment | 2.4 | — | — | — | ||||||||||||
Total regulatory assets | $ | 8.8 | $ | 90.6 | $ | 2.8 | $ | 84.9 | ||||||||
Regulatory liabilities: | ||||||||||||||||
RSE adjustment | $ | 19.8 | $ | — | $ | 4.7 | $ | — | ||||||||
Unbilled service margin | 5.2 | — | 28.5 | — | ||||||||||||
Postretirement liabilities | 2.3 | 26.2 | — | 26.2 | ||||||||||||
Refundable negative salvage | 13.4 | 26.8 | 15.8 | 39.7 | ||||||||||||
Gas supply adjustment | 22.4 | — | — | — | ||||||||||||
Other | — | 0.7 | — | 0.7 | ||||||||||||
Total regulatory liabilities | $ | 63.1 | $ | 53.7 | $ | 49 | $ | 66.6 | ||||||||
TRANSACTIONS_WITH_RELATED_PART
TRANSACTIONS WITH RELATED PARTIES | 9 Months Ended |
Sep. 30, 2014 | |
Related Party Transactions [Abstract] | ' |
TRANSACTIONS WITH RELATED PARTIES | ' |
TRANSACTIONS WITH RELATED PARTIES | |
Prior to the Transaction, Energen allocated certain corporate costs to the Company based on the nature of the expense using various factors including, but not limited to, total assets, earnings, or number of employees. The Company’s cash management program was established to minimize borrowing from outside sources through inter-company lending. Under this program, the Company borrowed from but did not lend to affiliates. The Company had net trade receivables from affiliates of $0.0 and $4.7 at September 30, 2014 and December 31, 2013, respectively. The Company had net trade payables to affiliates of $0.4 and $0.0 at September 30, 2014 and December 31, 2013, respectively. Interest income and expense between affiliates was calculated monthly based on the market weighted average interest rate. The Company had $0.0, $0.0 and $0.3 in affiliated company interest expense during the transition period ended September 30, 2014 and the calendar years ended December 31, 2013 and 2012, respectively. The Company paid dividends to Energen of $32.4, $33.3 and $33.6 during the transition period ended September 30, 2014 and the calendar years ended December 31, 2013 and 2012, respectively. The Company also paid dividends to Laclede of $5.0 in the transition period ended September 30, 2014. |
COMPARABLE_NINEMONTH_FINANCIAL
COMPARABLE NINE-MONTH FINANCIAL INFORMATION (UNAUDITED) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Supplemental Income Statement Elements [Abstract] | ' | ||||||||
COMPARABLE NINE-MONTH FINANCIAL INFORMATION (UNAUDITED) | ' | ||||||||
COMPARABLE NINE-MONTH FINANCIAL INFORMATION (UNAUDITED) | |||||||||
Effective as of September 2, 2014, the Company changed its fiscal year end from December 31 to September 30. Statements of Income for the nine months ended September 30, 2014 and 2013 are summarized below. All data for the nine months ended September 30, 2014 and 2013 are derived from the Company’s unaudited financial statements. | |||||||||
STATEMENTS OF INCOME | Nine Months Ended September 30, | ||||||||
($ Millions) | 2014 | 2013 | |||||||
Operating Revenues: | |||||||||
Utility | $ | 417.2 | $ | 390.6 | |||||
Total Operating Revenues | 417.2 | 390.6 | |||||||
Operating Expenses: | |||||||||
Utility | |||||||||
Natural gas | 184.5 | 163.4 | |||||||
Other operation and maintenance expenses | 107.5 | 107.7 | |||||||
Depreciation and amortization | 34.4 | 32.7 | |||||||
Taxes, other than income taxes | 28.6 | 27.8 | |||||||
Total Utility Operating Expenses | 355 | 331.6 | |||||||
Operating Income | 62.2 | 59 | |||||||
Other Income, Net | 2.2 | 13.2 | |||||||
Interest Charges: | |||||||||
Interest on long-term debt | 10.1 | 10.1 | |||||||
Other interest charges | 1.4 | 1.6 | |||||||
Total Interest Charges | 11.5 | 11.7 | |||||||
Income Before Income Taxes | 52.9 | 60.5 | |||||||
Income Tax Expense | 19.9 | 22.9 | |||||||
Net Income | $ | 33 | $ | 37.6 | |||||
SUMMARIZED_QUARTERLY_FINANCIAL
SUMMARIZED QUARTERLY FINANCIAL DATA (Unaudited) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||
SUMMARIZED QUARTERLY FINANCIAL DATA (UNAUDITED) | ' | |||||||||||||||
SUMMARIZED QUARTERLY FINANCIAL DATA (UNAUDITED) | ||||||||||||||||
In the opinion of the Company, the quarterly information presented below for the nine month period ended September 30, 2014 and the calendar year ended December 31, 2013 includes all adjustments (consisting of only normal recurring accruals) necessary for a fair statement of the results of operations for such periods. Variations in operations reported on a quarterly basis primarily reflect the seasonal nature of the business of the Company. | ||||||||||||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||
($ Millions) | First | Second | Third | |||||||||||||
Operating revenues | $ | 263.9 | $ | 93.9 | $ | 59.4 | ||||||||||
Operating income (loss) | 72.4 | 1.9 | (12.1 | ) | ||||||||||||
Net income (loss) | 43 | (0.6 | ) | (9.4 | ) | |||||||||||
Calendar Year Ended December 31, 2013 | ||||||||||||||||
($ Millions) | First | Second | Third | Fourth | ||||||||||||
Operating revenues | $ | 237.7 | $ | 104.5 | $ | 48.4 | $ | 142.7 | ||||||||
Operating income (loss) | 79.3 | 2.2 | (22.5 | ) | 34.7 | |||||||||||
Net income (loss) | 47.2 | (0.7 | ) | (8.9 | ) | 19.8 | ||||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended | |
Sep. 30, 2014 | ||
Accounting Policies [Abstract] | ' | |
Use of Estimates | ' | |
Use of Estimates - The preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. | ||
Utility Plant and Depreciation | ' | |
Utility Plant and Depreciation - Utility plant is stated at original cost. The cost of additions to utility plant includes contracted work, direct labor and materials, allocable overheads, and an allowance for funds used during construction. The costs of units of property retired, replaced, or renewed are removed from utility plant and are charged to accumulated depreciation. Maintenance and repairs of property and replacement and renewal of items determined to be less than units of property are charged to maintenance expenses. Gains and losses on all dispositions of land are recognized at time of disposal. | ||
Depreciation is provided using the composite method of depreciation on a straight-line basis over the estimated useful lives of property at rates approved by the Alabama Public Service Commission (APSC). On June 28, 2010, the APSC approved a reduction in depreciation rates, effective June 1, 2010, with the revised prospective composite depreciation rate approximating 3.1%. The Company anticipates refunding approximately $13.4 of refundable negative salvage costs through lower tariff rates over the next twelve months related to the lower depreciation rates. | ||
Asset Retirement Obligations | ' | |
Asset Retirement Obligations - The Company records legal obligations associated with the retirement of long-lived assets in the period in which the obligations are incurred, if sufficient information exists to reasonably estimate the fair value of the obligations. Obligations are recorded as both a cost of the related long-lived asset and as a corresponding liability. Subsequently, the asset retirement costs are depreciated over the life of the asset and the asset retirement obligations are accreted to the expected settlement amounts. The Company records asset retirement obligations associated with certain safety requirements to purge and seal gas distribution mains upon retirement, the plugging and abandonment of storage wells and other storage facilities, specific service line obligations, and certain removal and disposal obligations related to components of the Company’s distribution system and general plant. Such accruals are provided for through depreciation expense and are recorded with corresponding credits to regulatory liabilities. The costs associated with asset retirement obligations are either currently being recovered in rates or are probable of recovery in future rates. | ||
Regulated Operations | ' | |
Regulated Operations - The Company accounts for its regulated operations in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 980, “Regulated Operations.” This Topic sets forth the application of GAAP for those companies whose rates are established by or are subject to approval by an independent third party regulator. The provisions of this accounting guidance require, among other things, that financial statements of a regulated enterprise reflect the actions of regulators, where appropriate. These actions may result in the recognition of revenues and expenses in time periods that are different than non-regulated enterprises. When this occurs, costs are deferred as assets in the balance sheet (regulatory assets) and recorded as expenses when those amounts are reflected in rates. Also, regulators can impose liabilities upon a regulated company for amounts previously collected from customers and for recovery of costs that are expected to be incurred in the future (regulatory liabilities). Management believes that the current regulatory environment supports the continued use of these regulatory accounting principles and that all regulatory assets and regulatory liabilities are recoverable or refundable through the regulatory process. | ||
Inventories | ' | |
Natural Gas Stored Underground - Inventory of natural gas in storage is stated at average cost. | ||
Revenue Recognition and Gas Costs | ' | |
Revenue Recognition and Gas Costs - The Company records natural gas distribution revenues in accordance with the tariff established by the APSC. The margin and gas costs on service delivered to cycle customers but not yet billed are recorded in current assets as accounts receivable with a corresponding regulatory liability. Gas imbalances are settled on a monthly basis. Alagasco had no material imbalances at September 30, 2014 and December 31, 2013. | ||
Gas Supply Adjustment - The Company’s rate schedules for natural gas distribution charges contain a Gas Supply Adjustment (GSA) rider, established in 1993, which permits the pass-through to customers of changes in the cost of gas supply. The Company’s tariff provides a temperature adjustment mechanism, also included in the GSA that is designed to moderate the impact of departures from normal temperatures on the Company’s earnings. The temperature adjustment applies primarily to residential, small commercial and small industrial customers. Other non-temperature weather related conditions that may affect customer usage are not included in the temperature adjustment. In prior years, Alagasco entered into cash flow derivative commodity instruments to hedge its exposure to price fluctuations on its gas supply. Alagasco recognizes all derivatives at fair value as either assets or liabilities on the balance sheet. Any realized gains or losses are passed through to customers using the mechanisms of the GSA rider in accordance with Alagasco’s APSC approved tariff and are recognized as a regulatory asset or regulatory liability. | ||
Income Taxes | ' | |
Income Taxes - The Company uses the asset and liability method of accounting for income taxes. Under this method, a deferred tax asset or liability is recognized for the estimated future tax effects attributable to temporary differences between the financial statement basis and the tax basis of assets and liabilities, as well as tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period of the change. | ||
Gross Receipts Taxes, Franchise Fees and Sales Taxes | ' | |
Gross Receipts Taxes, Franchise Fees and Sales Taxes - Gross receipts taxes and franchise fees associated with the Company’s natural gas utility services are imposed on the Company and billed to its customers. These amounts are recorded gross in the Company’s Statements of Income. Amounts recorded in the Company’s Operating Revenues were $20.6, $25.9 and $21.5 for the transition period ended September 30, 2014 and the calendar years ended December 31, 2013 and 2012, respectively. Gross receipts taxes and franchise fees are expensed and included in the Taxes, other than income taxes line. Sales taxes imposed on applicable sales are billed to customers. These amounts are not recorded in the Statements of Income, but are recorded as tax collections payable and included in other current liabilities on the balance sheets. | ||
Accounts Receivable and Allowance for Doubtful Accounts | ' | |
Accounts Receivable and Allowance for Doubtful Accounts - Trade accounts receivable are recorded at the amounts due from customers, including unbilled amounts. Estimates of the collectability of trade accounts receivable are based on historical trends, age of receivables, economic conditions, credit risk of specific customers, and other factors. Accounts receivable are written off against the allowance for doubtful accounts when they are deemed to be uncollectible. | ||
Group Medical, General Liability and Workers' Compensation Reserves | ' | |
Group Medical, General Liability and Workers’ Compensation Reserves - The Company self-insures its group medical, general liability and workers’ compensation costs and carries stop-loss coverage in relation to medical claims, general liability and workers’ compensation claims. Reserves for amounts incurred but not reported are established based on historical cost levels and lags between occurrences and reporting. | ||
Fair Value Measurements | ' | |
Fair Value Measurements - Certain assets and liabilities are recognized or disclosed at fair value, which is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). GAAP establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. | ||
The levels of the hierarchy are described below: | ||
• | Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities. | |
• | Level 2 - Pricing inputs other than quoted prices included within Level 1, which are either directly or indirectly observable for the asset or liability as of the reporting date. These inputs are derived principally from, or corroborated by, observable market data. | |
• | Level 3 - Pricing that is based upon inputs that are generally unobservable that are based on the best information available and reflect management’s assumptions about how market participants would price the asset or liability. | |
Assessment of the significance of a particular input to the fair value measurements may require judgment and may affect the valuation of the asset or liability and its placement within the fair value hierarchy. | ||
New Accounting Standard | ' | |
New Accounting Standard - In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. This standard is intended to improve the financial reporting requirements for revenue from contracts with customers by providing a principles-based approach to the recognition of revenue. The core principle of the standard is when an entity transfers goods or services to customers it will recognize revenue in an amount that reflects the consideration the entity expects to be entitled to for those goods or services. The standard outlines a five-step model and related application guidance, which replaces most existing revenue recognition guidance. ASU 2014-09 also requires disclosures that will enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, with early adoption not permitted. The Company has not yet selected a transition method nor has it determined the impact, if any, of the standard on its ongoing financial condition and results of operations. |
LONGTERM_DEBT_AND_NOTES_PAYABL1
LONG-TERM DEBT AND NOTES PAYABLE (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Schedule of long-term debt outstanding | ' | |||||||
Long-term debt consisted of the following: | ||||||||
($ Millions) | 30-Sep-14 | 31-Dec-13 | ||||||
5.368% Notes, due December 1, 2015 | $ | 80 | $ | 80 | ||||
5.20% Notes, due January 15, 2020 | 40 | 40 | ||||||
3.86% Notes, due December 21, 2021 | 50 | 50 | ||||||
5.70% Notes, due January 15, 2035 | 34.8 | 34.9 | ||||||
5.90% Notes, due January 15, 2037 | 45 | 45 | ||||||
Revolving credit facility | 16 | 50 | ||||||
Total debt | 265.8 | 299.9 | ||||||
Less: current portion | (16.0 | ) | (50.0 | ) | ||||
Total long-term debt | $ | 249.8 | $ | 249.9 | ||||
Schedule of maturities of long-term debt by fiscal year | ' | |||||||
The aggregate maturities of the Company’s long-term debt for the next five years are as follows: | ||||||||
Years ending September 30, ($ Millions) | ||||||||
2015 | 2016 | 2017 | 2018 | 2019 | 2020 and beyond | |||
$0.00 | $80.00 | $0.00 | $0.00 | $16.00 | $169.80 | |||
Short-term borrowings | ' | |||||||
The following is a summary of information relating to the Company credit facility: | ||||||||
($ Millions) | 30-Sep-14 | 31-Dec-13 | ||||||
2014 and 2012 Facilities | (October 2012 Facility) | |||||||
Maximum amount outstanding at any month-end | $ | 55 | $ | 75 | ||||
Average daily amount outstanding | 13.7 | 35 | ||||||
Weighted average interest rates based on: | ||||||||
Average daily amount outstanding | 1.3 | % | 1.12 | % | ||||
Amount outstanding at year-end | 1.16 | % | 1.26 | % |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||||||
Net Provision For Income Tax | ' | |||||||||||||||
The components of the Company’s income taxes consisted of the following: | ||||||||||||||||
Nine Months ended | Calender Year Ended December 31, | |||||||||||||||
($ Millions) | 30-Sep-14 | 2013 | 2012 | |||||||||||||
Taxes estimated to be payable currently: | ||||||||||||||||
Federal | $ | 14.1 | $ | 17.5 | $ | 18.3 | ||||||||||
State | 1.8 | 2.2 | 0.7 | |||||||||||||
Total current | $ | 15.9 | $ | 19.7 | $ | 19 | ||||||||||
Taxes deferred: | ||||||||||||||||
Federal | $ | 3.5 | $ | 13.3 | $ | 9.1 | ||||||||||
State | 0.5 | 1.7 | 2.2 | |||||||||||||
Total deferred | $ | 4 | $ | 15 | $ | 11.3 | ||||||||||
Total income tax expense | $ | 19.9 | $ | 34.7 | $ | 30.3 | ||||||||||
Significant Items in Net Deferred Tax Liability | ' | |||||||||||||||
Temporary differences and carryforwards which gave rise to the Company’s deferred tax assets and liabilities were as follows: | ||||||||||||||||
($ Millions) | 30-Sep-14 | 31-Dec-13 | ||||||||||||||
Current | Noncurrent | Current | Noncurrent | |||||||||||||
Deferred tax assets: | ||||||||||||||||
Unbilled and deferred revenue | $ | 2.5 | $ | — | $ | 12.5 | $ | — | ||||||||
Allowance for doubtful accounts | — | — | 1.8 | — | ||||||||||||
Insurance accruals | — | — | 1.8 | — | ||||||||||||
Compensation accruals | — | — | 2.5 | — | ||||||||||||
Inventories | — | — | 1.3 | — | ||||||||||||
Gas supply adjustment related accruals | — | — | 0.7 | — | ||||||||||||
Pension and other costs | — | 10.6 | — | — | ||||||||||||
Goodwill | — | 266.1 | — | — | ||||||||||||
Net operating loss | — | 5.1 | — | — | ||||||||||||
Other | 0.2 | — | 1 | — | ||||||||||||
Total deferred tax assets | $ | 2.7 | $ | 281.8 | $ | 21.6 | $ | — | ||||||||
Deferred tax liabilities: | ||||||||||||||||
Depreciation and basis differences | $ | — | $ | 4 | $ | — | $ | 186.6 | ||||||||
Pension and other costs | — | — | — | 19 | ||||||||||||
Other | 0.4 | — | 1.6 | — | ||||||||||||
Total deferred tax liabilities | 0.4 | 4 | 1.6 | 205.6 | ||||||||||||
Net deferred tax assets (liabilities) | $ | 2.3 | $ | 277.8 | $ | 20 | $ | (205.6 | ) | |||||||
Effective income tax rate variation from stated tax rate | ' | |||||||||||||||
Total income tax expense for the Company differed from the amount that would have been provided by applying the statutory federal income tax rate of 35% to earnings before taxes as illustrated below: | ||||||||||||||||
Nine Months Ended | Calendar Year Ended December 31, | |||||||||||||||
($ Millions) | 30-Sep-14 | 2013 | 2012 | |||||||||||||
Income tax expense at statutory federal income tax rate | $ | 18.5 | $ | 32.2 | $ | 27.9 | ||||||||||
Increase (decrease) resulting from: | ||||||||||||||||
State income taxes, net of federal income tax benefit | 1.5 | 2.6 | 2.3 | |||||||||||||
Other, net | (0.1 | ) | (0.1 | ) | 0.1 | |||||||||||
Total income tax expense | $ | 19.9 | $ | 34.7 | $ | 30.3 | ||||||||||
Effective income tax rate (%) | 37.6 | % | 37.7 | % | 38 | % | ||||||||||
Unrecognized Tax Benefit Reconciliation | ' | |||||||||||||||
A reconciliation of the Company’s beginning and ending amount of unrecognized tax benefits is as follows: | ||||||||||||||||
($ Millions) | ||||||||||||||||
Balance as of December 31, 2011 | $ | 0.1 | ||||||||||||||
Additions based on tax positions related to the current year | 0.1 | |||||||||||||||
Additions for tax positions of prior years | 0.2 | |||||||||||||||
Reductions for tax positions of prior years (lapse of statute of limitations) | (0.1 | ) | ||||||||||||||
Balance as of December 31, 2012 | 0.3 | |||||||||||||||
Reductions for tax positions of prior years (lapse of statute of limitations) | — | |||||||||||||||
Balance as of December 31, 2013 | 0.3 | |||||||||||||||
Reductions for transfer of balances to Energen | (0.3 | ) | ||||||||||||||
Balance as of September 30, 2014 | $ | — | ||||||||||||||
PENSION_PLANS_AND_OTHER_POSTRE1
PENSION PLANS AND OTHER POST-RETIREMENT BENEFITS (Tables) | 9 Months Ended | |||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | ' | |||||||||||||||||
Net Periodic Cost | ' | |||||||||||||||||
The net periodic pension costs include the following components: | ||||||||||||||||||
Nine Months Ended | Calendar Year Ended December 31, | |||||||||||||||||
($ Millions) | 30-Sep-14 | 2013 | 2012 | |||||||||||||||
Pension Plans | ||||||||||||||||||
Components of net periodic benefit cost: | ||||||||||||||||||
Service cost | $ | 5.1 | $ | 14.2 | $ | 10.5 | ||||||||||||
Interest cost | 4.1 | 11.2 | 10.8 | |||||||||||||||
Expected long-term return on assets | (5.2 | ) | (14.7 | ) | (14.1 | ) | ||||||||||||
Prior service cost amortization | 0.1 | 0.5 | 0.6 | |||||||||||||||
Actuarial loss amortization | 2.2 | 14 | 8.6 | |||||||||||||||
Amortization of prior regulatory assets and liabilities | 0.4 | — | — | |||||||||||||||
Settlement charge | 10.1 | 1.4 | — | |||||||||||||||
Net periodic expense | $ | 16.8 | $ | 26.6 | $ | 16.4 | ||||||||||||
Postretirement Benefit Plans | ||||||||||||||||||
Components of net periodic benefit cost: | ||||||||||||||||||
Service cost | $ | 0.4 | $ | 1.7 | $ | 1.9 | ||||||||||||
Interest cost | 1.9 | 3.5 | 4.2 | |||||||||||||||
Expected long-term return on assets | (3.6 | ) | (5.0 | ) | (4.4 | ) | ||||||||||||
Actuarial (gain) loss amortization | (1.0 | ) | (0.1 | ) | — | |||||||||||||
Transition obligation amortization | — | 1.3 | 1.9 | |||||||||||||||
Amortization of prior regulatory assets and liabilities | (0.2 | ) | — | — | ||||||||||||||
Curtailment gain | — | (1.2 | ) | — | ||||||||||||||
Net periodic expense | $ | (2.5 | ) | $ | 0.2 | $ | 3.6 | |||||||||||
Other changes in plan assets and benefit obligations recognized in other comprehensive income | ' | |||||||||||||||||
Obligations recognized in other comprehensive income were as follows: | ||||||||||||||||||
Nine Months Ended | Calendar Year Ended December 31, | |||||||||||||||||
($ Millions) | 30-Sep-14 | 2013 | 2012 | |||||||||||||||
Pension Plans | ||||||||||||||||||
Net actuarial (gain) loss experienced during the year | $ | 1.5 | $ | (14.1 | ) | $ | 28.7 | |||||||||||
Net actuarial loss recognized as expense | — | (8.9 | ) | (4.9 | ) | |||||||||||||
Prior service cost recognized as expense | — | (0.3 | ) | (0.3 | ) | |||||||||||||
1.5 | (23.3 | ) | 23.5 | |||||||||||||||
Transfer to regulatory assets (liabilities) | (1.5 | ) | — | — | ||||||||||||||
Other Comprehensive Income | $ | — | $ | (23.3 | ) | $ | 23.5 | |||||||||||
Postretirement Benefit Plans | ||||||||||||||||||
Net actuarial (gain) loss experienced during the year | $ | 1.1 | $ | (8.1 | ) | $ | (1.8 | ) | ||||||||||
Net actuarial gain recognized as expense | — | 0.6 | — | |||||||||||||||
Transition obligation recognized as expense | — | (0.3 | ) | (0.3 | ) | |||||||||||||
1.1 | (7.8 | ) | (2.1 | ) | ||||||||||||||
Transfer to regulatory assets (liabilities) | (1.1 | ) | — | — | ||||||||||||||
Other Comprehensive Income | $ | — | $ | (7.8 | ) | $ | (2.1 | ) | ||||||||||
Reconciliation of the beginning and ending balances of benefit obligation | ' | |||||||||||||||||
The following table sets forth the reconciliation of the beginning and ending balances of the pension benefit obligation: | ||||||||||||||||||
September 30, | December 31, | September 30, | December 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
($ MIllions) | Pension | Postretirement Benefits | ||||||||||||||||
Accumulated benefit obligation | $ | 129.6 | $ | 253 | ||||||||||||||
Benefit obligation: | ||||||||||||||||||
Balance at beginning of period | $ | 293.4 | $ | 323.5 | $ | 63.6 | $ | 85.8 | ||||||||||
Energen portion of liability divested | (144.7 | ) | — | (13.3 | ) | — | ||||||||||||
Liability loss due to estimated allocation | 16.9 | — | 7.7 | — | ||||||||||||||
Service cost | 5.1 | 14.2 | 0.4 | 1.7 | ||||||||||||||
Interest cost | 4.1 | 11.2 | 1.9 | 3.5 | ||||||||||||||
Actuarial (gain) loss | 7.8 | (28.3 | ) | 4.3 | (21.7 | ) | ||||||||||||
Curtailment gain | — | (4.2 | ) | — | (1.3 | ) | ||||||||||||
Retiree drug subsidy program | — | — | 0.3 | 0.3 | ||||||||||||||
Benefits paid | (33.8 | ) | (23.0 | ) | (4.0 | ) | (4.7 | ) | ||||||||||
Balance at end of period | $ | 148.8 | $ | 293.4 | $ | 60.9 | $ | 63.6 | ||||||||||
Changes in fair value of plan assets | ' | |||||||||||||||||
The following table sets forth the reconciliation of the beginning and ending balances of the fair value of plan assets: | ||||||||||||||||||
September 30, | December 31, | September 30, | December 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
($ Millions) | Pension | Postretirement Benefits | ||||||||||||||||
Plan assets: | ||||||||||||||||||
Fair value of plan assets at beginning of period | $ | 219.5 | $ | 209.3 | $ | 98.9 | $ | 87.1 | ||||||||||
Energen portion of assets divested | (90.9 | ) | — | (22.0 | ) | — | ||||||||||||
Asset gain due to estimated allocation | 15 | — | 11 | — | ||||||||||||||
Actual return on plan assets | 7.8 | 23 | 1.4 | 14.9 | ||||||||||||||
Employer contributions | 1.6 | 10.2 | 0.3 | 1.6 | ||||||||||||||
Benefits paid | (33.8 | ) | (23.0 | ) | (4.0 | ) | (4.7 | ) | ||||||||||
Fair value of plan assets at end of period | $ | 119.2 | $ | 219.5 | $ | 85.6 | $ | 98.9 | ||||||||||
(Unfunded) funded status of plan | $ | (29.6 | ) | $ | (73.8 | ) | $ | 24.7 | $ | 35.4 | ||||||||
Amounts recognized in consolidated balance sheets | ' | |||||||||||||||||
The following table sets forth the amounts recognized in the Balance Sheets: | ||||||||||||||||||
September 30, | December 31, | September 30, | December 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
($ Millions) | Pension | Postretirement Benefits | ||||||||||||||||
Noncurrent assets | $ | — | $ | — | $ | 24.7 | $ | 35.4 | ||||||||||
Current liabilities | — | (6.1 | ) | — | — | |||||||||||||
Noncurrent liabilities | (29.6 | ) | (67.7 | ) | — | — | ||||||||||||
Net asset (liability) recognized | $ | (29.6 | ) | $ | (73.8 | ) | $ | 24.7 | $ | 35.4 | ||||||||
A summary of the Company's allocated share of the benefit plans described above is presented below as of the transition period and calendar year end, respectively: | ||||||||||||||||||
September 30, | December 31, | September 30, | December 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
($ MIllions) | Pension | Postretirement Benefits | ||||||||||||||||
Net benefit asset noncurrent | $ | — | $ | — | $ | 24.7 | $ | 26.5 | ||||||||||
Net benefit liability noncurrent | (29.6 | ) | (20.2 | ) | — | — | ||||||||||||
Regulatory asset | 67.8 | 58.5 | 4.7 | — | ||||||||||||||
Regulatory liability | $ | (1.9 | ) | $ | — | $ | (26.6 | ) | $ | (26.2 | ) | |||||||
Assumptions used to calculate net periodic cost and benefit obligations. | ' | |||||||||||||||||
Assumptions are used based on the unique set of characteristics for each of the individual pension and postretirement plans. | ||||||||||||||||||
Nine Months Ended | Calendar Years Ended December 31, | |||||||||||||||||
30-Sep-14 | 2013 | 2012 | ||||||||||||||||
Pension Plans | ||||||||||||||||||
Discount rate | 4.00% & 4.05% | 3.63 | % | 4.52 | % | |||||||||||||
Expected long-term return on plan assets | 7.25% & 7.00% | 7 | % | 7 | % | |||||||||||||
Rate of compensation increase for pay-related plans | 2.92 | % | 3.71 | % | 3.59 | % | ||||||||||||
Postretirement Benefit Plans | ||||||||||||||||||
Discount rate | 4.25 | % | 4.26 | % | 4.95 | % | ||||||||||||
Expected long-term return on plan assets | 7.25% & 4.75% | 7 | % | 7 | % | |||||||||||||
The weighted average rate assumptions used to determine the projected benefit obligations at the measurement date were as follows: | ||||||||||||||||||
30-Sep-14 | 31-Dec-13 | |||||||||||||||||
Pension Plans | ||||||||||||||||||
Discount rate | 4.15% & 4.25% | 4.3 | % | |||||||||||||||
Rate of compensation increase for pay-related plans | 2.92 | % | 3.6 | % | ||||||||||||||
Postretirement Benefit Plans | ||||||||||||||||||
Discount rate | 4.4 | % | 5 | % | ||||||||||||||
Schedule of assumed post-65 health care cost trend rates | ' | |||||||||||||||||
The assumed post-65 health care cost trend rates used to determine the postretirement benefit obligation at the measurement date were as follows: | ||||||||||||||||||
30-Sep-14 | 31-Dec-13 | |||||||||||||||||
Health care cost trend rate assumed for next year | 7.25 | % | 6.5 | % | ||||||||||||||
Rate to which the cost trend rate is assumed to decline | 5 | % | 5 | % | ||||||||||||||
Year that rate reaches ultimate rate | 2020 | 2020 | ||||||||||||||||
Schedule of effect of one-percent point change in assumed health care cost trend rates | ' | |||||||||||||||||
Assumed health care cost trend rates used in determining the accumulated postretirement benefit obligation have an effect on the amounts reported. For example, revising the weighted average health care cost trend rate by 1 percentage point would have the following effects: | ||||||||||||||||||
($ Millions) | 1-Percentage Point Decrease | 1-Percentage Point Increase | ||||||||||||||||
Effect on total of service and interest cost | $ | — | $ | — | ||||||||||||||
Effect on net postretirement benefit obligation | (0.7 | ) | 0.7 | |||||||||||||||
Targeted and actual plan assets by category | ' | |||||||||||||||||
Following are the targeted and actual plan assets by asset category: | ||||||||||||||||||
Pension | Postretirement Benefits | |||||||||||||||||
Target | 30-Sep-14 | 31-Dec-13 | Target | 30-Sep-14 | 31-Dec-13 | |||||||||||||
Asset category: | ||||||||||||||||||
Equity securities | 41 | % | 51 | % | 34 | % | 60 | % | 60 | % | 61 | % | ||||||
Debt securities | 38 | % | 36 | % | 28 | % | 40 | % | 40 | % | 39 | % | ||||||
Other | 21 | % | 13 | % | 38 | % | — | % | — | % | — | % | ||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||
Plan assets included in the funded status of the postretirement benefit plans were as follows: | ||||||||||||||||||
30-Sep-14 | ||||||||||||||||||
($ Millions) | Level 1 | Level 2 | Total | |||||||||||||||
United States equities (1) | $ | 43.9 | $ | — | $ | 43.9 | ||||||||||||
Global equities (2) | 7.2 | — | 7.2 | |||||||||||||||
Fixed income (3) | — | 34.4 | 34.4 | |||||||||||||||
Cash and cash equivalents | 0.1 | — | 0.1 | |||||||||||||||
Total | $ | 51.2 | $ | 34.4 | $ | 85.6 | ||||||||||||
31-Dec-13 | ||||||||||||||||||
($ Millions) | Level 1 | Level 2 | Total | |||||||||||||||
United States equities | $ | 43.1 | $ | — | $ | 43.1 | ||||||||||||
Global equities | 17 | — | 17 | |||||||||||||||
Fixed income | — | 38.8 | 38.8 | |||||||||||||||
Cash and cash equivalents | — | — | — | |||||||||||||||
Total | $ | 60.1 | $ | 38.8 | $ | 98.9 | ||||||||||||
Plan assets included in the funded status of the pension plans were as follows: | ||||||||||||||||||
30-Sep-14 | ||||||||||||||||||
($ Millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
United States equities (1) | $ | 30.4 | $ | 13.6 | $ | — | $ | 44 | ||||||||||
Global equities (2) | 12.3 | 0 | — | 12.3 | ||||||||||||||
Fixed income (3) | 11.5 | 31.9 | — | 43.4 | ||||||||||||||
Alternative investments (4) | — | 17.6 | — | 17.6 | ||||||||||||||
Cash and cash equivalents | 0.3 | 1.6 | — | 1.9 | ||||||||||||||
Total | $ | 54.5 | $ | 64.7 | $ | — | $ | 119.2 | ||||||||||
31-Dec-13 | ||||||||||||||||||
($ Millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
United States equities (1) | $ | 34.1 | $ | 8.1 | $ | — | $ | 42.2 | ||||||||||
Global equities (2) | 20.1 | 13.3 | — | 33.4 | ||||||||||||||
Fixed income (3) | — | 61.1 | — | 61.1 | ||||||||||||||
Alternative investments (4) | — | 37.3 | — | 37.3 | ||||||||||||||
Cash and cash equivalents | 6 | 39.5 | — | 45.5 | ||||||||||||||
Total | $ | 60.2 | $ | 159.3 | $ | — | $ | 219.5 | ||||||||||
Reconciliation of plan assets in Level 3 of fair value hierarchy | ' | |||||||||||||||||
The following is a reconciliation of plan assets in Level 3 of the fair value hierarchy: | ||||||||||||||||||
Nine Months Ending September 30, | Calendar Year Ending December 31, | |||||||||||||||||
($ Millions) | 2014 | 2013 | ||||||||||||||||
Balance at beginning of period | $ | — | $ | 14.5 | ||||||||||||||
Transfer out of level 3 | — | (14.5 | ) | |||||||||||||||
Balance at end of period | $ | — | $ | — | ||||||||||||||
Expected benefit payments for the succeeding five fiscal years | ' | |||||||||||||||||
The following benefit payments, which reflect expected future service, as appropriate, are anticipated to be paid as follows. In addition, the following benefits reflect the expected prescription drug subsidy related to the Medicare Prescription Drug, Improvement and Modernization Act of 2003 (Act). The Act includes a prescription drug benefit under Medicare Part D as well as a federal subsidy which began in 2007: | ||||||||||||||||||
($ Millions) | Pension Benefits | Postretirement Benefits | Postretirement Benefits – Prescription Drug Subsidy | |||||||||||||||
2015 | $ | 9.9 | $ | 3.8 | $ | (0.2 | ) | |||||||||||
2016 | 10.2 | 3.8 | (0.2 | ) | ||||||||||||||
2017 | 10.6 | 3.8 | (0.2 | ) | ||||||||||||||
2018 | 10.6 | 3.8 | (0.2 | ) | ||||||||||||||
2019 | 11.2 | 3.8 | (0.3 | ) | ||||||||||||||
2020-2024 | 58.7 | 18.6 | (1.3 | ) | ||||||||||||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended | |||||
Sep. 30, 2014 | ||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||
Schedule of minimum future rental payments | ' | |||||
Minimum future rental payments required after September 30, 2014 under leases with initial or remaining noncancelable lease terms in excess of one year are as follows: | ||||||
($ Millions) | ||||||
2015 | 2016 | 2017 | 2018 | 2019 | 2020 and thereafter | |
4.3 | 3.9 | 4 | 2.9 | 2.1 | 9.1 |
ASSET_RETIREMENT_OBLIGATIONS_T
ASSET RETIREMENT OBLIGATIONS (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Asset Retirement Obligation Disclosure [Abstract] | ' | ||||||||
Schedule of asset retirement obligations | ' | ||||||||
The following table presents a reconciliation of the beginning and ending balances of asset retirement obligations at September 30, 2014 and December 31, 2013 as reported in the Balance Sheet: | |||||||||
($ Millions) | September 30, | December 31, | |||||||
2014 | 2013 | ||||||||
Asset retirement obligations, beginning of year | $ | 27.5 | $ | 24.9 | |||||
Liabilities incurred during the period | 0.5 | 0.8 | |||||||
Liabilities settled during the period | (0.1 | ) | (0.1 | ) | |||||
Accretion | 0.7 | 1.3 | |||||||
Revisions in estimated cash flows | (0.9 | ) | 0.6 | ||||||
Asset retirement obligations, end of year | $ | 27.7 | $ | 27.5 | |||||
SUPPLEMENTAL_CASH_FLOW_INFORMA1
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Supplemental Cash Flow Elements [Abstract] | ' | |||||||||||
Schedule of Cash Flow, Supplemental Disclosures | ' | |||||||||||
Supplemental information concerning the Company’s cash flow activities was as follows: | ||||||||||||
Nine Months Ended | Calendar Years Ended December 31, | |||||||||||
($ Millions) | 30-Sep-14 | 2013 | 2012 | |||||||||
Interest paid, net of amount capitalized | $ | 9.6 | $ | 13.5 | $ | 13.5 | ||||||
Income taxes paid | 20.4 | 23.1 | 16.8 | |||||||||
Interest expense on affiliated company debt, net | — | — | 0.3 | |||||||||
Non-cash investing activities: | ||||||||||||
Accrued property, plant and equipment costs | 5 | 5.5 | 3.5 | |||||||||
REGULATORY_ASSETS_AND_LIABILIT1
REGULATORY ASSETS AND LIABILITIES (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Regulated Operations [Abstract] | ' | |||||||||||||||
Regulatory Assets | ' | |||||||||||||||
The following regulatory assets and regulatory liabilities were reflected in the Company's Balance Sheets and also included below: | ||||||||||||||||
30-Sep-14 | 31-Dec-13 | |||||||||||||||
($ Millions) | Current | Noncurrent | Current | Noncurrent | ||||||||||||
Regulatory assets: | ||||||||||||||||
Postretirement assets | $ | 6.4 | $ | 66.1 | $ | 0.3 | $ | 58.2 | ||||||||
Accretion and depreciation for asset retirement obligation | — | 18.3 | — | 18 | ||||||||||||
Rate recovery of asset removal costs, net | — | 2.8 | — | 4.7 | ||||||||||||
Enhanced stability reserve | — | 3.4 | — | 4 | ||||||||||||
Gas supply adjustment | — | — | 2.5 | — | ||||||||||||
RSE adjustment | 2.4 | — | — | — | ||||||||||||
Total regulatory assets | $ | 8.8 | $ | 90.6 | $ | 2.8 | $ | 84.9 | ||||||||
Regulatory liabilities: | ||||||||||||||||
RSE adjustment | $ | 19.8 | $ | — | $ | 4.7 | $ | — | ||||||||
Unbilled service margin | 5.2 | — | 28.5 | — | ||||||||||||
Postretirement liabilities | 2.3 | 26.2 | — | 26.2 | ||||||||||||
Refundable negative salvage | 13.4 | 26.8 | 15.8 | 39.7 | ||||||||||||
Gas supply adjustment | 22.4 | — | — | — | ||||||||||||
Other | — | 0.7 | — | 0.7 | ||||||||||||
Total regulatory liabilities | $ | 63.1 | $ | 53.7 | $ | 49 | $ | 66.6 | ||||||||
Regulatory Liabilities | ' | |||||||||||||||
The following regulatory assets and regulatory liabilities were reflected in the Company's Balance Sheets and also included below: | ||||||||||||||||
30-Sep-14 | 31-Dec-13 | |||||||||||||||
($ Millions) | Current | Noncurrent | Current | Noncurrent | ||||||||||||
Regulatory assets: | ||||||||||||||||
Postretirement assets | $ | 6.4 | $ | 66.1 | $ | 0.3 | $ | 58.2 | ||||||||
Accretion and depreciation for asset retirement obligation | — | 18.3 | — | 18 | ||||||||||||
Rate recovery of asset removal costs, net | — | 2.8 | — | 4.7 | ||||||||||||
Enhanced stability reserve | — | 3.4 | — | 4 | ||||||||||||
Gas supply adjustment | — | — | 2.5 | — | ||||||||||||
RSE adjustment | 2.4 | — | — | — | ||||||||||||
Total regulatory assets | $ | 8.8 | $ | 90.6 | $ | 2.8 | $ | 84.9 | ||||||||
Regulatory liabilities: | ||||||||||||||||
RSE adjustment | $ | 19.8 | $ | — | $ | 4.7 | $ | — | ||||||||
Unbilled service margin | 5.2 | — | 28.5 | — | ||||||||||||
Postretirement liabilities | 2.3 | 26.2 | — | 26.2 | ||||||||||||
Refundable negative salvage | 13.4 | 26.8 | 15.8 | 39.7 | ||||||||||||
Gas supply adjustment | 22.4 | — | — | — | ||||||||||||
Other | — | 0.7 | — | 0.7 | ||||||||||||
Total regulatory liabilities | $ | 63.1 | $ | 53.7 | $ | 49 | $ | 66.6 | ||||||||
COMPARABLE_NINEMONTH_FINANCIAL1
COMPARABLE NINE-MONTH FINANCIAL INFORMATION (UNAUDITED) (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Supplemental Income Statement Elements [Abstract] | ' | ||||||||
Comparable Nine-month Statements of Income | ' | ||||||||
Effective as of September 2, 2014, the Company changed its fiscal year end from December 31 to September 30. Statements of Income for the nine months ended September 30, 2014 and 2013 are summarized below. All data for the nine months ended September 30, 2014 and 2013 are derived from the Company’s unaudited financial statements. | |||||||||
STATEMENTS OF INCOME | Nine Months Ended September 30, | ||||||||
($ Millions) | 2014 | 2013 | |||||||
Operating Revenues: | |||||||||
Utility | $ | 417.2 | $ | 390.6 | |||||
Total Operating Revenues | 417.2 | 390.6 | |||||||
Operating Expenses: | |||||||||
Utility | |||||||||
Natural gas | 184.5 | 163.4 | |||||||
Other operation and maintenance expenses | 107.5 | 107.7 | |||||||
Depreciation and amortization | 34.4 | 32.7 | |||||||
Taxes, other than income taxes | 28.6 | 27.8 | |||||||
Total Utility Operating Expenses | 355 | 331.6 | |||||||
Operating Income | 62.2 | 59 | |||||||
Other Income, Net | 2.2 | 13.2 | |||||||
Interest Charges: | |||||||||
Interest on long-term debt | 10.1 | 10.1 | |||||||
Other interest charges | 1.4 | 1.6 | |||||||
Total Interest Charges | 11.5 | 11.7 | |||||||
Income Before Income Taxes | 52.9 | 60.5 | |||||||
Income Tax Expense | 19.9 | 22.9 | |||||||
Net Income | $ | 33 | $ | 37.6 | |||||
SUMMARIZED_QUARTERLY_FINANCIAL1
SUMMARIZED QUARTERLY FINANCIAL DATA (Unaudited) (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||
Schedule of Quarterly Financial Information Table | ' | |||||||||||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||
($ Millions) | First | Second | Third | |||||||||||||
Operating revenues | $ | 263.9 | $ | 93.9 | $ | 59.4 | ||||||||||
Operating income (loss) | 72.4 | 1.9 | (12.1 | ) | ||||||||||||
Net income (loss) | 43 | (0.6 | ) | (9.4 | ) | |||||||||||
Calendar Year Ended December 31, 2013 | ||||||||||||||||
($ Millions) | First | Second | Third | Fourth | ||||||||||||
Operating revenues | $ | 237.7 | $ | 104.5 | $ | 48.4 | $ | 142.7 | ||||||||
Operating income (loss) | 79.3 | 2.2 | (22.5 | ) | 34.7 | |||||||||||
Net income (loss) | 47.2 | (0.7 | ) | (8.9 | ) | 19.8 | ||||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) (USD $) | 0 Months Ended | 9 Months Ended | 12 Months Ended | 0 Months Ended | ||
Jun. 01, 2010 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 02, 2014 | Sep. 02, 2014 | |
Laclede Group Inc | Laclede Group Inc | |||||
Alagasco | Alagasco | |||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' |
Consideration transferred | ' | ' | ' | ' | $1,600,000,000 | ' |
Long-term debt assumed in a business combination | ' | ' | ' | ' | ' | 250,000,000 |
Composite depreciation rate (percent) | 3.10% | ' | ' | ' | ' | ' |
Refundable gas costs | ' | 13,400,000 | ' | ' | ' | ' |
Gas imbalances | ' | 0 | 0 | ' | ' | ' |
Taxes on revenues | ' | $20,600,000 | $25,900,000 | $21,500,000 | ' | ' |
ACQUISITION_Details
ACQUISITION (Details) (USD $) | 0 Months Ended | |
Sep. 02, 2014 | Sep. 02, 2014 | |
Business Acquisition [Line Items] | ' | ' |
Deferred tax asset established | $280,100,000 | $280,100,000 |
Deferred tax assets and liabilities | 0 | 0 |
Laclede Group Inc | Alagasco | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Total consideration transferred | 1,600,000,000 | ' |
Long-term debt assumed in a business combination | ' | $250,000,000 |
REGULATORY_MATTERS_Details
REGULATORY MATTERS (Details) (USD $) | 0 Months Ended | 9 Months Ended | 12 Months Ended | 0 Months Ended | 9 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 9 Months Ended | 12 Months Ended | 0 Months Ended | |||||
Dec. 01, 2010 | Sep. 30, 2014 | Dec. 31, 2010 | Dec. 31, 2010 | Dec. 31, 2010 | Dec. 31, 2010 | Jan. 01, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 01, 2014 | Dec. 31, 2013 | Jan. 01, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Jan. 01, 2014 | Dec. 01, 2014 | |
APSC Approved Expension of ESR, November 1, 2010 | Self Insurance Costs | Force Majeure Event Costs | Force Majeure Events Costs | Alabama Public Service Commission | Alabama Public Service Commission | Alabama Public Service Commission | Alabama Public Service Commission | Alabama Public Service Commission | Alabama Public Service Commission | Alabama Public Service Commission | Alabama Public Service Commission | Alabama Public Service Commission | Alabama Public Service Commission, Performance Based Adjustment | Scenario, Forecast | |||
APSC Approved Expension of ESR, November 1, 2010 | APSC Approved Expension of ESR, November 1, 2010 | APSC Approved Expension of ESR, November 1, 2010 | Minimum | Minimum | Maximum | Maximum | Maximum | Alabama Public Service Commission | |||||||||
Public Utilities, General Disclosures [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Public utilities, approved return on equity, percentage | ' | ' | ' | ' | ' | ' | 10.80% | ' | ' | ' | 10.50% | 13.15% | 10.95% | ' | 13.65% | 500.00% | ' |
Public utilities, approved equity capital structure, percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 56.50% | ' | ' | ' |
Public utilities, maximum return on equity, percentage of prior year revenues | ' | ' | ' | ' | ' | ' | ' | 4.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Public utilities, reduction to revenues for rate making purposes | ' | ' | ' | ' | ' | ' | ' | $22,500,000 | $10,600,000 | $6,300,000 | ' | ' | ' | ' | ' | ' | ' |
Public utilities, approved rate increase (decrease), amount | ' | ' | ' | ' | ' | ' | ' | -8,500,000 | 10,300,000 | 7,800,000 | ' | ' | ' | ' | ' | ' | 2,400,000 |
Public utilities, rate increase (decrease), index range, margin | ' | ' | ' | ' | ' | ' | ' | 1.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Extraordinary Operating and maintenance expenses, minimum amount, charged to enhanced stability reserve | ' | ' | ' | 1,000,000 | 300,000 | 400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Negative revenue variance, large commercial and industrial customer budget, minimum amount, charged to enhanced stability reserve | ' | ' | 400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Public utilities, recovery period | '9 years | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization expense, enhanced stability reserve, annual amount | ' | $700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
LONGTERM_DEBT_AND_NOTES_PAYABL2
LONG-TERM DEBT AND NOTES PAYABLE - Long-term Debt Outstanding (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Total debt | $265.80 | $299.90 |
Less: current portion | -16 | -50 |
Long-term debt (less current portion) | 249.8 | 249.9 |
5.368% Notes, due December 1, 2015 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total debt | 80 | 80 |
Debt instrument, interest rate, stated percentage | 5.37% | 5.37% |
5.20% Notes, due January 15, 2020 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total debt | 40 | 40 |
Debt instrument, interest rate, stated percentage | 5.20% | 5.20% |
3.86% Notes, due December 21, 2021 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total debt | 50 | 50 |
Debt instrument, interest rate, stated percentage | 3.86% | 3.86% |
5.70% Notes, due January 15, 2035 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total debt | 34.8 | 34.9 |
Debt instrument, interest rate, stated percentage | 5.70% | 5.70% |
5.90% Notes, due January 15, 2037 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total debt | 45 | 45 |
Debt instrument, interest rate, stated percentage | 5.90% | 5.90% |
Revolving credit facility | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total debt | $16 | $50 |
LONGTERM_DEBT_AND_NOTES_PAYABL3
LONG-TERM DEBT AND NOTES PAYABLE - Maturities of Long-term Debt (Details) (USD $) | Sep. 30, 2014 |
In Millions, unless otherwise specified | |
Maturities on long-term debt [Abstract] | ' |
2015 | $0 |
2016 | 80 |
2017 | 0 |
2018 | 0 |
2019 | 16 |
2020 and beyond | $169.80 |
LONGTERM_DEBT_AND_NOTES_PAYABL4
LONG-TERM DEBT AND NOTES PAYABLE - Narrative (Details) (USD $) | 9 Months Ended | 12 Months Ended | 0 Months Ended | ||||||
Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 02, 2014 | Sep. 30, 2014 | Sep. 02, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | |
Line of Credit | Line of Credit | Line of Credit | Letter of Credit | Swingline | |||||
Extension | |||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility, short-term, authorized amount | $35,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Repayments of lines of credit | ' | ' | ' | ' | 15,000,000 | ' | ' | ' | ' |
Debt issued, maturity term | ' | ' | ' | ' | '5 years | ' | ' | ' | ' |
Number of extensions permitted under credit agreement | ' | ' | ' | ' | ' | ' | 2 | ' | ' |
Extension period under credit agreement | ' | ' | ' | ' | '1 year | ' | ' | ' | ' |
Debt percentage to capitalization as financial covenants | ' | ' | ' | ' | ' | ' | 70.00% | ' | ' |
Ratio of Indebtedness to Net Capital | ' | ' | ' | ' | ' | 0.24 | ' | ' | ' |
Line of credit facility borrowing capacity | 150,000,000 | ' | ' | ' | ' | ' | ' | 15,000,000 | 15,000,000 |
Additional increase in borrowing capacity available | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense | $11,500,000 | $11,700,000 | $15,600,000 | $16,300,000 | ' | ' | ' | ' | ' |
LONGTERM_DEBT_AND_NOTES_PAYABL5
LONG-TERM DEBT AND NOTES PAYABLE - Short-term Borrowings (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Debt Disclosure [Abstract] | ' | ' |
Maximum amount outstanding at any month-end | $55 | $75 |
Average daily amount outstanding | $13.70 | $35 |
Weighted average interest rate, Average daily amount outstanding | 1.30% | 1.12% |
Weighted average interest rate, Amount outstanding at year-end | 1.16% | 1.26% |
INCOME_TAXES_Net_Provisions_fo
INCOME TAXES - Net Provisions for Income Taxes (Details) (USD $) | 9 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
Taxes estimated to be payable currently: | ' | ' | ' | ' |
Federal | $14.10 | ' | $17.50 | $18.30 |
State | 1.8 | ' | 2.2 | 0.7 |
Total current | 15.9 | ' | 19.7 | 19 |
Taxes deferred: | ' | ' | ' | ' |
Federal | 3.5 | ' | 13.3 | 9.1 |
State | 0.5 | ' | 1.7 | 2.2 |
Total deferred | 4 | ' | 15 | 11.3 |
Total income tax expense | $19.90 | $22.90 | $34.70 | $30.30 |
INCOME_TAXES_Effective_Income_
INCOME TAXES - Effective Income Tax Rate Variation from Stated Tax Rate (Details) (USD $) | 9 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Federal income tax statutory rate | 35.00% | ' | ' | ' |
Income tax expense at statutory federal income tax rate | $18.50 | ' | $32.20 | $27.90 |
State income taxes, net of federal income tax benefit | 1.5 | ' | 2.6 | 2.3 |
Other, net | -0.1 | ' | -0.1 | 0.1 |
Total income tax expense | $19.90 | $22.90 | $34.70 | $30.30 |
Effective income tax rate (%) | 37.60% | ' | 37.70% | 38.00% |
INCOME_TAXES_Significant_Items
INCOME TAXES - Significant Items in Net Deferred Tax Liability (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Deferred tax assets, Current | $2.70 | $21.60 |
Deferred tax assets, Noncurrent | 281.8 | 0 |
Deferred tax liabilities: | ' | ' |
Deferred tax liabilities, Current | 0.4 | 1.6 |
Deferred tax liabilities, Noncurrent | 4 | 205.6 |
Deferred Tax Assets, Net, Current | 2.3 | 20 |
Deferred Tax Assets, Net, Noncurrent | 277.8 | 0 |
Deferred Tax Liabilities, Net, Noncurrent | 0 | -205.6 |
Deferred tax assets, Current | ' | ' |
Deferred tax assets: | ' | ' |
Unbilled and deferred revenue | 2.5 | 12.5 |
Allowance for doubtful accounts | 0 | 1.8 |
Insurance accruals | 0 | 1.8 |
Compensation accruals | 0 | 2.5 |
Inventories | 0 | 1.3 |
Gas supply adjustment related accruals | 0 | 0.7 |
Pension and other costs | 0 | 0 |
Goodwill | 0 | 0 |
Net operating loss | 0 | 0 |
Other | 0.2 | 1 |
Deferred tax assets, Noncurrent | ' | ' |
Deferred tax assets: | ' | ' |
Unbilled and deferred revenue | 0 | 0 |
Allowance for doubtful accounts | 0 | 0 |
Insurance accruals | 0 | 0 |
Compensation accruals | 0 | 0 |
Inventories | 0 | 0 |
Gas supply adjustment related accruals | 0 | 0 |
Pension and other costs | 10.6 | 0 |
Goodwill | 266.1 | 0 |
Net operating loss | 5.1 | 0 |
Other | 0 | 0 |
Deferred tax liabilities, Current | ' | ' |
Deferred tax liabilities: | ' | ' |
Depreciation and basis differences | 0 | 0 |
Pension and other costs | 0 | 0 |
Other | 0.4 | 1.6 |
Deferred tax liabilities, Noncurrent | ' | ' |
Deferred tax liabilities: | ' | ' |
Depreciation and basis differences | 4 | 186.6 |
Pension and other costs | 0 | 19 |
Other | $0 | $0 |
INCOME_TAXES_Unrecognized_Tax_
INCOME TAXES - Unrecognized Tax Benefit Reconciliation (Details) (USD $) | 9 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Unrecognized tax benefits [Roll Forward] | ' | ' | ' |
Unrecognized tax benefits, beginning of year | $0.30 | $0.30 | $0.10 |
Additions based on tax positions related to the current year | ' | ' | 0.1 |
Additions for tax positions of prior years | ' | ' | 0.2 |
Reductions for tax positions of prior years (lapse of statute of limitations) | -0.3 | 0 | -0.1 |
Unrecognized tax benefits, end of year | $0 | $0.30 | $0.30 |
PENSION_PLANS_AND_OTHER_POSTRE2
PENSION PLANS AND OTHER POST-RETIREMENT BENEFITS - Net Periodic Cost (Details) (USD $) | 9 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' |
Settlement charge | $0 | ($0.10) | ' |
Pension Plans | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' |
Service cost | 5.1 | 14.2 | 10.5 |
Interest cost | 4.1 | 11.2 | 10.8 |
Expected long-term return on assets | -5.2 | -14.7 | -14.1 |
Prior service cost amortization | 0.1 | 0.5 | 0.6 |
Actuarial (gain) loss amortization | 2.2 | 14 | 8.6 |
Settlement charge | 10.1 | 1.4 | 0 |
Amortization of prior regulatory assets and liabilities | 0.4 | 0 | 0 |
Net periodic expense | 16.8 | 26.6 | 16.4 |
Postretirement Plans | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' |
Service cost | 0.4 | 1.7 | 1.9 |
Interest cost | 1.9 | 3.5 | 4.2 |
Expected long-term return on assets | -3.6 | -5 | -4.4 |
Actuarial (gain) loss amortization | -1 | -0.1 | 0 |
Transition obligation amortization | 0 | 1.3 | 1.9 |
Amortization of prior regulatory assets and liabilities | -0.2 | ' | ' |
Curtailment gain | 0 | -1.2 | 0 |
Net periodic expense | ($2.50) | $0.20 | $3.60 |
PENSION_PLANS_AND_OTHER_POSTRE3
PENSION PLANS AND OTHER POST-RETIREMENT BENEFITS - Expenses Recognized in Other Comprehensive Income (Loss) (Details) (USD $) | 9 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Pension Plans | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' |
Net actuarial (gain) loss experienced during the year | $1.50 | ($14.10) | $28.70 |
Net actuarial gain (loss) recognized as expense | 0 | -8.9 | -4.9 |
Prior service cost recognized as expense | 0 | -0.3 | -0.3 |
Total recognized in other comprehensive income (loss) | 1.5 | -23.3 | 23.5 |
Transfer to regulatory assets (liabilities) | -1.5 | 0 | 0 |
Other Comprehensive Income | 0 | -23.3 | 23.5 |
Postretirement Plans | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' |
Net actuarial (gain) loss experienced during the year | 1.1 | -8.1 | -1.8 |
Net actuarial gain (loss) recognized as expense | 0 | 0.6 | 0 |
Transition obligation recognized as expense | 0 | -0.3 | -0.3 |
Total recognized in other comprehensive income (loss) | 1.1 | -7.8 | -2.1 |
Transfer to regulatory assets (liabilities) | -1.1 | 0 | 0 |
Other Comprehensive Income | $0 | ($7.80) | ($2.10) |
PENSION_PLANS_AND_OTHER_POSTRE4
PENSION PLANS AND OTHER POST-RETIREMENT BENEFITS - Benefit Obligation Rollforward (Details) (USD $) | 9 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Pension Plans | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' |
Accumulated benefit obligation | $129.60 | $253 | ' |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ' | ' | ' |
Benefit obligation, beginning of year | 293.4 | 323.5 | ' |
Energen portion of liability divested | -144.7 | 0 | ' |
Liability loss due to estimated allocation | 16.9 | 0 | ' |
Service cost | 5.1 | 14.2 | 10.5 |
Interest cost | 4.1 | 11.2 | 10.8 |
Actuarial (gain) loss | 7.8 | -28.3 | ' |
Curtailment gain | 0 | -4.2 | ' |
Retiree drug subsidy program | 0 | 0 | ' |
Benefits paid | -33.8 | -23 | ' |
Benefit obligation, end of year | 148.8 | 293.4 | 323.5 |
Postretirement Plans | ' | ' | ' |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ' | ' | ' |
Benefit obligation, beginning of year | 63.6 | 85.8 | ' |
Energen portion of liability divested | -13.3 | 0 | ' |
Liability loss due to estimated allocation | 7.7 | 0 | ' |
Service cost | 0.4 | 1.7 | 1.9 |
Interest cost | 1.9 | 3.5 | 4.2 |
Actuarial (gain) loss | 4.3 | -21.7 | ' |
Curtailment gain | 0 | -1.3 | ' |
Retiree drug subsidy program | 0.3 | 0.3 | ' |
Benefits paid | -4 | -4.7 | ' |
Benefit obligation, end of year | $60.90 | $63.60 | $85.80 |
PENSION_PLANS_AND_OTHER_POSTRE5
PENSION PLANS AND OTHER POST-RETIREMENT BENEFITS - Fair Value of Plan Assets Rollforward (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | Pension Plans | Pension Plans | Postretirement Plans | Postretirement Plans | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Fair value of plan assets at beginning of period | $0 | $0 | $14.50 | $219.50 | $209.30 | $98.90 | $87.10 |
Energen portion of assets divested | ' | ' | ' | -90.9 | 0 | -22 | 0 |
Asset gain due to estimated allocation | ' | ' | ' | 15 | 0 | 11 | 0 |
Actual return on plan assets | ' | ' | ' | 7.8 | 23 | 1.4 | 14.9 |
Employer contributions | ' | ' | ' | 1.6 | 10.2 | 0.3 | 1.6 |
Benefits paid | ' | ' | ' | -33.8 | -23 | -4 | -4.7 |
Fair value of plan assets at end of period | 0 | 0 | 14.5 | 119.2 | 219.5 | 85.6 | 98.9 |
(Unfunded) funded status of plan | ' | ' | ' | ($29.60) | ($73.80) | $24.70 | $35.40 |
Amounts_Recognized_in_Consolid
- Amounts Recognized in Consolidated Balance Sheets (Details) (USD $) | Sep. 30, 2014 | Sep. 01, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | |||
Defined Benefit Plan, Amounts Recognized in Balance Sheet [Abstract] | ' | ' | ' |
Noncurrent assets | $24.70 | ' | $26.50 |
Noncurrent liabilities | -29.6 | ' | -20.2 |
Regulatory asset | ' | 72.5 | ' |
Regulatory liability | ' | -28.5 | ' |
Pension Plans | ' | ' | ' |
Defined Benefit Plan, Amounts Recognized in Balance Sheet [Abstract] | ' | ' | ' |
Noncurrent assets | 0 | ' | 0 |
Current liabilities | 0 | ' | -6.1 |
Noncurrent liabilities | -29.6 | ' | -67.7 |
Net benefit asset noncurrent | 0 | ' | 0 |
Net benefit liability noncurrent | -29.6 | ' | -20.2 |
Regulatory asset | 67.8 | ' | 58.5 |
Regulatory liability | -1.9 | ' | 0 |
Net asset (liability) recognized | -29.6 | ' | -73.8 |
Postretirement Plans | ' | ' | ' |
Defined Benefit Plan, Amounts Recognized in Balance Sheet [Abstract] | ' | ' | ' |
Noncurrent assets | 24.7 | ' | 35.4 |
Current liabilities | 0 | ' | 0 |
Noncurrent liabilities | 0 | ' | 0 |
Net benefit asset noncurrent | 24.7 | ' | 26.5 |
Net benefit liability noncurrent | 0 | ' | 0 |
Regulatory asset | 4.7 | ' | 0 |
Regulatory liability | -26.6 | ' | -26.2 |
Net asset (liability) recognized | $24.70 | ' | $35.40 |
PENSION_PLANS_AND_OTHER_POSTRE6
PENSION PLANS AND OTHER POST-RETIREMENT BENEFITS - Assumptions Used to Calculate Net Periodic Cost and Benefit Obligations (Details) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Assumptions used to calculate benefit obligations [Abstract] | ' | ' | ' |
Weighted average rate of future compensation increase | 2.92% | ' | ' |
Pension Plans | ' | ' | ' |
Assumptions used to calculate net periodic cost [Abstract] | ' | ' | ' |
Weighted average discount rate | ' | 3.63% | 4.52% |
Expected long-term rate of return on plan assets | ' | 7.00% | 7.00% |
Weighted average rate of future compensation increase | 2.92% | 3.71% | 3.59% |
Assumptions used to calculate benefit obligations [Abstract] | ' | ' | ' |
Weighted average discount rate | ' | 4.30% | ' |
Weighted average rate of future compensation increase | ' | 3.60% | ' |
Postretirement Plans | ' | ' | ' |
Assumptions used to calculate net periodic cost [Abstract] | ' | ' | ' |
Weighted average discount rate | 4.25% | 4.26% | 4.95% |
Expected long-term rate of return on plan assets | ' | 7.00% | 7.00% |
Assumptions used to calculate benefit obligations [Abstract] | ' | ' | ' |
Weighted average discount rate | 4.40% | 5.00% | ' |
Minimum | Pension Plans | ' | ' | ' |
Assumptions used to calculate net periodic cost [Abstract] | ' | ' | ' |
Weighted average discount rate | 4.00% | ' | ' |
Expected long-term rate of return on plan assets | 7.00% | ' | ' |
Minimum | Postretirement Plans | ' | ' | ' |
Assumptions used to calculate net periodic cost [Abstract] | ' | ' | ' |
Expected long-term rate of return on plan assets | 4.75% | ' | ' |
Assumptions used to calculate benefit obligations [Abstract] | ' | ' | ' |
Weighted average discount rate | 4.15% | ' | ' |
Maximum | Pension Plans | ' | ' | ' |
Assumptions used to calculate net periodic cost [Abstract] | ' | ' | ' |
Weighted average discount rate | 4.05% | ' | ' |
Expected long-term rate of return on plan assets | 7.25% | ' | ' |
Maximum | Postretirement Plans | ' | ' | ' |
Assumptions used to calculate net periodic cost [Abstract] | ' | ' | ' |
Expected long-term rate of return on plan assets | 7.25% | ' | ' |
Assumptions used to calculate benefit obligations [Abstract] | ' | ' | ' |
Weighted average discount rate | 4.25% | ' | ' |
PENSION_PLANS_AND_OTHER_POSTRE7
PENSION PLANS AND OTHER POST-RETIREMENT BENEFITS - Post-65 Health Care Cost Trend Rates (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2014 | Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | ' | ' |
Health care cost trend rate assumed for next year | 7.25% | 6.50% |
Rate to which the cost trend rate is assumed to decline | 5.00% | 5.00% |
Year that rate reaches ultimate rate | '2020 | '2020 |
PENSION_PLANS_AND_OTHER_POSTRE8
PENSION PLANS AND OTHER POST-RETIREMENT BENEFITS - Assumed Medical Cost Trend Rates and Effect of 1% Changed (Details) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 |
Assumed 1% change in the assumed medical cost trend rate [Abstract] | ' |
Effect of 1% decrease on net periodic postretirement benefit cost | $0 |
Effect of 1% increase on net periodic postretirement benefit cost | 0 |
Effect of 1% decrease on accumulated postretirement benefit obligation | -0.7 |
Effect of 1% increase on accumulated postretirement benefit obligation | $0.70 |
PENSION_PLANS_AND_OTHER_POSTRE9
PENSION PLANS AND OTHER POST-RETIREMENT BENEFITS - Targeted and Actual Plan Assets by Category (Details) | 9 Months Ended | |
Sep. 30, 2014 | Dec. 31, 2013 | |
Pension Plans | ' | ' |
Targeted and actual plan assets by category [Abstract] | ' | ' |
Targeted allocation of plan assets | 100.00% | ' |
Actual allocation of plan assets | 100.00% | 100.00% |
Pension Plans | Equity Markets | ' | ' |
Targeted and actual plan assets by category [Abstract] | ' | ' |
Targeted allocation of plan assets | 41.00% | ' |
Actual allocation of plan assets | 51.00% | 34.00% |
Pension Plans | Debt Securities | ' | ' |
Targeted and actual plan assets by category [Abstract] | ' | ' |
Targeted allocation of plan assets | 38.00% | ' |
Actual allocation of plan assets | 36.00% | 28.00% |
Pension Plans | Other | ' | ' |
Targeted and actual plan assets by category [Abstract] | ' | ' |
Targeted allocation of plan assets | 21.00% | ' |
Actual allocation of plan assets | 13.00% | 38.00% |
Postretirement Plans | ' | ' |
Targeted and actual plan assets by category [Abstract] | ' | ' |
Targeted allocation of plan assets | 100.00% | ' |
Actual allocation of plan assets | 100.00% | 100.00% |
Postretirement Plans | Equity Markets | ' | ' |
Targeted and actual plan assets by category [Abstract] | ' | ' |
Targeted allocation of plan assets | 60.00% | ' |
Actual allocation of plan assets | 60.00% | 61.00% |
Postretirement Plans | Debt Securities | ' | ' |
Targeted and actual plan assets by category [Abstract] | ' | ' |
Targeted allocation of plan assets | 40.00% | ' |
Actual allocation of plan assets | 40.00% | 39.00% |
Postretirement Plans | Other | ' | ' |
Targeted and actual plan assets by category [Abstract] | ' | ' |
Targeted allocation of plan assets | 0.00% | ' |
Actual allocation of plan assets | 0.00% | 0.00% |
Recovered_Sheet1
PENSION PLANS AND OTHER POST-RETIREMENT BENEFITS - Fair Value Measurements of Plan Assets (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ||
Fair value measurements of plan assets | $0 | $0 | $14.50 | ||
Pension Plans | ' | ' | ' | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ||
Fair value measurements of plan assets | 119.2 | 219.5 | 209.3 | ||
Pension Plans | United States equities | ' | ' | ' | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ||
Fair value measurements of plan assets | 44 | [1] | 42.2 | [1] | ' |
Pension Plans | Global equities | ' | ' | ' | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ||
Fair value measurements of plan assets | 12.3 | [2] | 33.4 | [2] | ' |
Pension Plans | Fixed income | ' | ' | ' | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ||
Fair value measurements of plan assets | 43.4 | [3] | 61.1 | [3] | ' |
Pension Plans | Alternative investments | ' | ' | ' | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ||
Fair value measurements of plan assets | 17.6 | [4] | 37.3 | [4] | ' |
Pension Plans | Cash and cash equivalents | ' | ' | ' | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ||
Fair value measurements of plan assets | 1.9 | 45.5 | ' | ||
Pension Plans | Level 1 | ' | ' | ' | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ||
Fair value measurements of plan assets | 54.5 | 60.2 | ' | ||
Pension Plans | Level 1 | United States equities | ' | ' | ' | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ||
Fair value measurements of plan assets | 30.4 | [1] | 34.1 | [1] | ' |
Pension Plans | Level 1 | Global equities | ' | ' | ' | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ||
Fair value measurements of plan assets | 12.3 | [2] | 20.1 | [2] | ' |
Pension Plans | Level 1 | Fixed income | ' | ' | ' | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ||
Fair value measurements of plan assets | 11.5 | [3] | 0 | [3] | ' |
Pension Plans | Level 1 | Alternative investments | ' | ' | ' | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ||
Fair value measurements of plan assets | 0 | [4] | 0 | [4] | ' |
Pension Plans | Level 1 | Cash and cash equivalents | ' | ' | ' | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ||
Fair value measurements of plan assets | 0.3 | 6 | ' | ||
Pension Plans | Level 2 | ' | ' | ' | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ||
Fair value measurements of plan assets | 64.7 | 159.3 | ' | ||
Pension Plans | Level 2 | United States equities | ' | ' | ' | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ||
Fair value measurements of plan assets | 13.6 | [1] | 8.1 | [1] | ' |
Pension Plans | Level 2 | Global equities | ' | ' | ' | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ||
Fair value measurements of plan assets | 0 | [2] | 13.3 | [2] | ' |
Pension Plans | Level 2 | Fixed income | ' | ' | ' | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ||
Fair value measurements of plan assets | 31.9 | [3] | 61.1 | [3] | ' |
Pension Plans | Level 2 | Alternative investments | ' | ' | ' | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ||
Fair value measurements of plan assets | 17.6 | [4] | 37.3 | [4] | ' |
Pension Plans | Level 2 | Cash and cash equivalents | ' | ' | ' | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ||
Fair value measurements of plan assets | 1.6 | 39.5 | ' | ||
Pension Plans | Level 3 | ' | ' | ' | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ||
Fair value measurements of plan assets | 0 | 0 | ' | ||
Pension Plans | Level 3 | United States equities | ' | ' | ' | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ||
Fair value measurements of plan assets | 0 | [1] | 0 | [1] | ' |
Pension Plans | Level 3 | Global equities | ' | ' | ' | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ||
Fair value measurements of plan assets | 0 | [2] | 0 | [2] | ' |
Pension Plans | Level 3 | Fixed income | ' | ' | ' | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ||
Fair value measurements of plan assets | 0 | [3] | 0 | [3] | ' |
Pension Plans | Level 3 | Alternative investments | ' | ' | ' | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ||
Fair value measurements of plan assets | 0 | [4] | 0 | [4] | ' |
Pension Plans | Level 3 | Cash and cash equivalents | ' | ' | ' | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ||
Fair value measurements of plan assets | 0 | 0 | ' | ||
Postretirement Plans | ' | ' | ' | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ||
Fair value measurements of plan assets | 85.6 | 98.9 | 87.1 | ||
Postretirement Plans | United States equities | ' | ' | ' | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ||
Fair value measurements of plan assets | 43.9 | [1] | 43.1 | ' | |
Postretirement Plans | Global equities | ' | ' | ' | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ||
Fair value measurements of plan assets | 7.2 | [2] | 17 | ' | |
Postretirement Plans | Fixed income | ' | ' | ' | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ||
Fair value measurements of plan assets | 34.4 | [3] | 38.8 | ' | |
Postretirement Plans | Cash and cash equivalents | ' | ' | ' | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ||
Fair value measurements of plan assets | 0.1 | 0 | ' | ||
Postretirement Plans | Level 1 | ' | ' | ' | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ||
Fair value measurements of plan assets | 51.2 | 60.1 | ' | ||
Postretirement Plans | Level 1 | United States equities | ' | ' | ' | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ||
Fair value measurements of plan assets | 43.9 | [1] | 43.1 | ' | |
Postretirement Plans | Level 1 | Global equities | ' | ' | ' | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ||
Fair value measurements of plan assets | 7.2 | [2] | 17 | ' | |
Postretirement Plans | Level 1 | Fixed income | ' | ' | ' | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ||
Fair value measurements of plan assets | 0 | [3] | 0 | ' | |
Postretirement Plans | Level 1 | Cash and cash equivalents | ' | ' | ' | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ||
Fair value measurements of plan assets | 0.1 | ' | ' | ||
Postretirement Plans | Level 2 | ' | ' | ' | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ||
Fair value measurements of plan assets | 34.4 | 38.8 | ' | ||
Postretirement Plans | Level 2 | United States equities | ' | ' | ' | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ||
Fair value measurements of plan assets | 0 | [1] | 0 | ' | |
Postretirement Plans | Level 2 | Global equities | ' | ' | ' | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ||
Fair value measurements of plan assets | 0 | [2] | 0 | ' | |
Postretirement Plans | Level 2 | Fixed income | ' | ' | ' | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ||
Fair value measurements of plan assets | 34.4 | [3] | 38.8 | ' | |
Postretirement Plans | Level 2 | Cash and cash equivalents | ' | ' | ' | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ||
Fair value measurements of plan assets | $0 | ' | ' | ||
[1] | United States equities consist of mutual and commingled funds with varying strategies. Such strategies include stock investments across market capitalizations and investment styles. | ||||
[2] | Global equities consist of mutual funds and a limited partnership that invest in United States and non-United States securities broadly diversified across mostly developed markets but with some tactical exposure to emerging markets. | ||||
[3] | Fixed income securities consist of mutual funds and separate accounts. Fixed income securities are well diversified with allocations to investment grade and non-investment grade issues and issues that provide both intermediate and longer duration exposure. | ||||
[4] | Alternative investments consist of limited partnerships and commingled and mutual funds with varying investment strategies. Alternative investments are meant to serve as a risk reducer at the total portfolio level as they provide asset class exposures not found elsewhere in the portfolio. |
Reconciliation_of_Plan_Assets_
- Reconciliation of Plan Assets in Level 3 (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2014 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ' | ' |
Fair value of plan assets at beginning of period | $14.50 | $0 |
Transfer out of level 3 | -14.5 | ' |
Fair value of plan assets at end of period | $0 | $0 |
Recovered_Sheet2
PENSION PLANS AND OTHER POST-RETIREMENT BENEFITS - Expected Future Benefit Payments (Details) (USD $) | Sep. 30, 2014 |
In Millions, unless otherwise specified | |
Pension Plans | ' |
Expected benefit payments [Abstract] | ' |
2015 | $9.90 |
2016 | 10.2 |
2017 | 10.6 |
2018 | 10.6 |
2019 | 11.2 |
2020 - 2024 | 58.7 |
Postretirement Plans | ' |
Expected benefit payments [Abstract] | ' |
2015 | 3.8 |
2016 | 3.8 |
2017 | 3.8 |
2018 | 3.8 |
2019 | 3.8 |
2020 - 2024 | 18.6 |
Prescription Drug Subsidy Receipts, Fiscal Year Maturity [Abstract] | ' |
2015 | -0.2 |
2016 | -0.2 |
2017 | -0.2 |
2018 | -0.2 |
2019 | -0.3 |
2020-2024 | ($1.30) |
Recovered_Sheet3
PENSION PLANS AND OTHER POST-RETIREMENT BENEFITS - Narrative (Details) (USD $) | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | |||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 01, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Dec. 31, 2013 |
Pension Plans | Pension Plans | Pension Plans | Postretirement Plans | Postretirement Plans | Postretirement Plans | Pension And Postretirement Cost | Pension And Postretirement Cost | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Regulatory asset | ' | ' | $72.50 | $67.80 | $58.50 | ' | $4.70 | $0 | ' | $0 | $0.40 |
Regulatory liability | ' | ' | 28.5 | 1.9 | 0 | ' | 26.6 | 26.2 | ' | ' | ' |
Settlement charge recognized for payment of lump sums from the nonqualified supplemental retirement plans | 0 | 0.1 | ' | -10.1 | -1.4 | 0 | ' | ' | ' | ' | ' |
Settlements | 0 | 0.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net periodic expense | ' | ' | ' | 16.8 | 26.6 | 16.4 | -2.5 | 0.2 | 3.6 | ' | ' |
Employer contributions | ' | ' | ' | $1.60 | $10.20 | ' | $0.30 | $1.60 | ' | ' | ' |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 |
In Millions, unless otherwise specified | site | Removal Action, Phase I | Removal Action, Phase II | Sites owned by Alagasco | Natural Gas, Delivery and Storage | Natural Gas, Delivery and Storage | Natural Gas, Delivery and Storage | Natural Gas |
35th Avenue Superfund Site | 35th Avenue Superfund Site | site | MMcf | |||||
Resident | Resident | |||||||
Site Contingency [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum total payments required for natural gas contracts | ' | ' | ' | ' | $134 | ' | ' | ' |
Long-term contracts expense recognized in financial statements | ' | ' | ' | ' | $33.80 | $50 | $51 | ' |
Long-term contracts, minimum quantity commitments (in millions of cubic feet) | ' | ' | ' | ' | ' | ' | ' | 111,000 |
Chain of title, manufactured gas plant sites | 9 | ' | ' | 4 | ' | ' | ' | ' |
Chain of title, manufactured gas distribution sites | 5 | ' | ' | 1 | ' | ' | ' | ' |
Site contingency, number of residents contaminated | ' | 50 | 30 | ' | ' | ' | ' | ' |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Lease Obligations (Details) (USD $) | 1 Months Ended | 9 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Feb. 28, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Lease_Renewal | ||||
Operating Leased Assets [Line Items] | ' | ' | ' | ' |
Number of renewal options available under operating lease arrangement | 5 | ' | ' | ' |
Operating leases renewal term | '5 years | ' | ' | ' |
Total lease payments | ' | $1.80 | $2.40 | $2.10 |
Lease expense paid by parent company | ' | 0 | 0.7 | 1 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ' | ' | ' | ' |
2015 | ' | 4.3 | ' | ' |
2016 | ' | 3.9 | ' | ' |
2017 | ' | 4 | ' | ' |
2018 | ' | 2.9 | ' | ' |
2019 | ' | 2.1 | ' | ' |
2020 and thereafter | ' | 9.1 | ' | ' |
Company's headquarters | ' | ' | ' | ' |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ' | ' | ' | ' |
Payments associated with leasing of Company's headquarters | ' | $11 | ' | ' |
FINANCIAL_INSTRUMENTS_AND_RISK1
FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Aggregate purchase price of guarantees | $0.60 | ' |
Market value an aggregate purchase price of guarantees | 0.6 | ' |
Financing receivable, net | 10.9 | 10.8 |
Threshold period past due for collection | '90 days | ' |
Threshold period past due for write-off of financing receivable | '12 months | ' |
Financing receivable, recorded investment, equal to greater than 90 days past due | 0.3 | 0.4 |
Allowance for credit losses recognized | 0.3 | 0.4 |
Natural Gas Distribution | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Number of customers | 423,000 | ' |
Estimate of Fair Value Measurement | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long-term debt, fair value | 266.4 | 258.8 |
Carrying Value | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long-term debt, fair value | $249.80 | $249.90 |
ASSET_RETIREMENT_OBLIGATIONS_D
ASSET RETIREMENT OBLIGATIONS (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Regulatory Assets [Line Items] | ' | ' |
Regulatory assets for rate recovery | $90.60 | $84.90 |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ' | ' |
Asset retirement obligations, beginning of year | 27.5 | 24.9 |
Liabilities incurred during the period | 0.5 | 0.8 |
Liabilities settled during the period | -0.1 | -0.1 |
Accretion | 0.7 | 1.3 |
Revisions in estimated cash flows | -0.9 | 0.6 |
Asset retirement obligations, end of year | 27.7 | 27.5 |
Removal Costs | ' | ' |
Regulatory Assets [Line Items] | ' | ' |
Regulatory assets for rate recovery | 2.8 | 4.7 |
Accrual Cost Of Removal | ' | ' |
Regulatory Assets [Line Items] | ' | ' |
Regulatory assets for rate recovery | ' | $4.60 |
SUPPLEMENTAL_CASH_FLOW_INFORMA2
SUPPLEMENTAL CASH FLOW INFORMATION (Details) (USD $) | 9 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Supplemental Cash Flow Elements [Abstract] | ' | ' | ' |
Interest paid, net of amount capitalized | $9.60 | $13.50 | $13.50 |
Income taxes paid | 20.4 | 23.1 | 16.8 |
Interest expense on affiliated company debt, net | 0 | 0 | 0.3 |
Accrued property, plant and equipment costs | $5 | $5.50 | $3.50 |
ACQUISITION_AND_DISPOSITION_OF1
ACQUISITION AND DISPOSITION OF PROPERTIES (Details) (USD $) | 1 Months Ended |
In Millions, unless otherwise specified | Aug. 31, 2013 |
Leases [Abstract] | ' |
Gain recognized related to sale | $10.90 |
Proceeds from sale, pre-tax | $13.80 |
Length of lease | '20 months |
REGULATORY_ASSETS_AND_LIABILIT2
REGULATORY ASSETS AND LIABILITIES - Regulatory Assets (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Regulatory Assets [Line Items] | ' | ' |
Regulatory assets, current | $8.80 | $2.80 |
Regulatory assets, noncurrent | 90.6 | 84.9 |
Postretirement assets | ' | ' |
Regulatory Assets [Line Items] | ' | ' |
Regulatory assets, current | 6.4 | 0.3 |
Regulatory assets, noncurrent | 66.1 | 58.2 |
Accretion and depreciation for asset retirement obligation | ' | ' |
Regulatory Assets [Line Items] | ' | ' |
Regulatory assets, current | 0 | 0 |
Regulatory assets, noncurrent | 18.3 | 18 |
Rate recovery of asset removal costs, net | ' | ' |
Regulatory Assets [Line Items] | ' | ' |
Regulatory assets, current | 0 | 0 |
Regulatory assets, noncurrent | 2.8 | 4.7 |
Enhanced stability reserve | ' | ' |
Regulatory Assets [Line Items] | ' | ' |
Regulatory assets, current | 0 | 0 |
Regulatory assets, noncurrent | 3.4 | 4 |
Gas supply adjustment | ' | ' |
Regulatory Assets [Line Items] | ' | ' |
Regulatory assets, current | 0 | 2.5 |
Regulatory assets, noncurrent | 0 | 0 |
RSE adjustment | ' | ' |
Regulatory Assets [Line Items] | ' | ' |
Regulatory assets, current | 2.4 | 0 |
Regulatory assets, noncurrent | $0 | $0 |
REGULATORY_ASSETS_AND_LIABILIT3
REGULATORY ASSETS AND LIABILITIES - Regulatory Liabilities (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Regulatory Liabilities [Line Items] | ' | ' |
Regulatory liabilities, current | $63.10 | $49 |
Regulatory liabilities, noncurrent | 53.7 | 66.6 |
RSE adjustment | ' | ' |
Regulatory Liabilities [Line Items] | ' | ' |
Regulatory liabilities, current | 19.8 | 4.7 |
Regulatory liabilities, noncurrent | 0 | 0 |
Unbilled service margin | ' | ' |
Regulatory Liabilities [Line Items] | ' | ' |
Regulatory liabilities, current | 5.2 | 28.5 |
Regulatory liabilities, noncurrent | 0 | 0 |
Postretirement liabilities | ' | ' |
Regulatory Liabilities [Line Items] | ' | ' |
Regulatory liabilities, current | 2.3 | 0 |
Regulatory liabilities, noncurrent | 26.2 | 26.2 |
Refundable negative salvage | ' | ' |
Regulatory Liabilities [Line Items] | ' | ' |
Regulatory liabilities, current | 13.4 | 15.8 |
Regulatory liabilities, noncurrent | 26.8 | 39.7 |
Gas supply adjustment | ' | ' |
Regulatory Liabilities [Line Items] | ' | ' |
Regulatory liabilities, current | 22.4 | 0 |
Regulatory liabilities, noncurrent | 0 | 0 |
RSE adjustment | ' | ' |
Regulatory Liabilities [Line Items] | ' | ' |
Regulatory liabilities, current | 0 | 0 |
Regulatory liabilities, noncurrent | $0.70 | $0.70 |
TRANSACTIONS_WITH_RELATED_PART1
TRANSACTIONS WITH RELATED PARTIES (Details) (USD $) | 9 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Related Party Transaction [Line Items] | ' | ' | ' |
Net trade receivables from affiliates | $0 | $4.70 | ' |
Due to Related Parties | 0.4 | 0 | ' |
Interest revenue from affiliates | 0 | 0 | 0.3 |
Dividends paid to Laclede Group | 5 | ' | ' |
Energen Corporation | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Dividends, Cash | $32.40 | $33.30 | $33.60 |
COMPARABLE_NINEMONTH_FINANCIAL2
COMPARABLE NINE-MONTH FINANCIAL INFORMATION (UNAUDITED) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
Supplemental Income Statement Elements [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Utility | ' | ' | ' | ' | ' | ' | ' | $417.20 | $390.60 | $533.30 | $451.60 |
Total Operating Revenues | 59.4 | 93.9 | 263.9 | 142.7 | 48.4 | 104.5 | 237.7 | 417.2 | 390.6 | 533.3 | 451.6 |
Natural gas | ' | ' | ' | ' | ' | ' | ' | 184.5 | 163.4 | 215.5 | 142.2 |
Other operation and maintenance expenses | ' | ' | ' | ' | ' | ' | ' | 107.5 | 107.7 | 143.1 | 141.3 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | 34.4 | 32.7 | 43.9 | 42.3 |
Taxes, other than income taxes | ' | ' | ' | ' | ' | ' | ' | 28.6 | 27.8 | 37.1 | 32.5 |
Total Utility Operating Expenses | ' | ' | ' | ' | ' | ' | ' | 355 | 331.6 | 439.6 | 358.3 |
Operating income (loss) | -12.1 | 1.9 | 72.4 | 34.7 | -22.5 | 2.2 | 79.3 | 62.2 | 59 | 93.7 | 93.3 |
Other Income | ' | ' | ' | ' | ' | ' | ' | 2.2 | 13.2 | 14 | 2.7 |
Interest on long-term debt | ' | ' | ' | ' | ' | ' | ' | 10.1 | 10.1 | 13.5 | 13.7 |
Other interest charges | ' | ' | ' | ' | ' | ' | ' | 1.4 | 1.6 | 2.1 | 2.6 |
Total Interest Charges | ' | ' | ' | ' | ' | ' | ' | 11.5 | 11.7 | 15.6 | 16.3 |
Income Before Income Taxes | ' | ' | ' | ' | ' | ' | ' | 52.9 | 60.5 | 92.1 | 79.7 |
Income Tax Expense | ' | ' | ' | ' | ' | ' | ' | 19.9 | 22.9 | 34.7 | 30.3 |
Net Income | ($9.40) | ($0.60) | $43 | $19.80 | ($8.90) | ($0.70) | $47.20 | $33 | $37.60 | $57.40 | $49.40 |
SUMMARIZED_QUARTERLY_FINANCIAL2
SUMMARIZED QUARTERLY FINANCIAL DATA (Unaudited) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating revenues | $59.40 | $93.90 | $263.90 | $142.70 | $48.40 | $104.50 | $237.70 | $417.20 | $390.60 | $533.30 | $451.60 |
Operating income (loss) | -12.1 | 1.9 | 72.4 | 34.7 | -22.5 | 2.2 | 79.3 | 62.2 | 59 | 93.7 | 93.3 |
Net income (loss) | ($9.40) | ($0.60) | $43 | $19.80 | ($8.90) | ($0.70) | $47.20 | $33 | $37.60 | $57.40 | $49.40 |