Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 28, 2017 | Jun. 30, 2016 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | QUESTAR GAS CO | ||
Entity Central Index Key | 68,589 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 9,189,626 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | Yes | ||
Entity Current Reporting Status | No | ||
Entity Public Float | $ 0 |
Statements of Income
Statements of Income - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Income Statement [Abstract] | ||||
Operating revenue | [1] | $ 921.3 | $ 917.6 | $ 960.9 |
Operating Expenses | ||||
Cost of sales | [1] | 542.1 | 558.1 | 604.8 |
Other operations and maintenance | [1] | 176.6 | 162.5 | 175.2 |
Depreciation and amortization | 61 | 55.1 | 53.6 | |
Other taxes | 20.9 | 19.3 | 17.8 | |
Total Operating Expenses | 800.6 | 795 | 851.4 | |
Income from operations | 120.7 | 122.6 | 109.5 | |
Other income | 3.8 | 4.8 | 5.9 | |
Interest expense | [1] | 30.2 | 28.3 | 28.2 |
Income from operations before income tax expense | 94.3 | 99.1 | 87.2 | |
Income tax expense | 37.1 | 34.8 | 32 | |
Net Income | $ 57.2 | $ 64.3 | $ 55.2 | |
[1] | See Note 18 for amounts attributable to related parties. |
Balance Sheets
Balance Sheets - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | |
Current Assets | |||
Cash and cash equivalents | $ 7.6 | $ 10.5 | |
Customer receivables (less allowance for doubtful accounts of $1.7 at both dates) | 163.7 | 168.8 | |
Receivable from affiliates | 0.6 | 103.4 | |
Inventories at lower of average cost or market: | |||
Gas stored underground | 49.3 | 43.9 | |
Materials and supplies | 27.6 | 17.1 | |
Regulatory assets | 9.6 | 69.8 | |
Prepaid expenses and other | 3.7 | 3.5 | |
Total current assets | 262.1 | 417 | |
Property, Plant and Equipment | |||
Property, plant and equipment | 2,883 | 2,570.3 | |
Accumulated depreciation and amortization | (737.6) | (812.2) | |
Total property, plant and equipment, net | 2,145.4 | 1,758.1 | |
Receivable from affiliates | 98.3 | 0 | |
Goodwill | [1] | 5.6 | 5.6 |
Regulatory assets | 5.5 | 11.9 | |
Other noncurrent assets | 0.1 | 0.1 | |
Total deferred charges and other assets | 109.5 | 17.6 | |
Total assets | 2,517 | 2,192.7 | |
Current Liabilities | |||
Securities due within one year | 14.5 | 0 | |
Short-term debt | 200 | 0 | |
Affiliated current borrowings | 48 | 273.3 | |
Accounts payable and accrued expenses | 117.2 | 122.5 | |
Accounts payable to affiliates | 43.5 | 74.5 | |
Customer advances | 27.9 | 34.3 | |
Other current liabilities | 8.2 | 4 | |
Total current liabilities | 459.3 | 508.6 | |
Long-Term Debt | 616.3 | 531.2 | |
Deferred Credits and Other Liabilities | |||
Deferred income taxes | 475.8 | 436.7 | |
Regulatory liabilities | 189.1 | 65.6 | |
Asset retirement obligations | 76.2 | 0.6 | |
Payables to affiliates | 23.5 | 0 | |
Customer contributions in aid of construction | 19 | 23.7 | |
Other noncurrent liabilities | 0.2 | 1.6 | |
Total deferred credits and other liabilities | 783.8 | 528.2 | |
Total liabilities | 1,859.4 | 1,568 | |
Commitments and Contingencies (see Note 16) | |||
Common Shareholder's Equity | |||
Common stock - par value $2.50; 50.0 million shares authorized; 9.2 million shares issued and outstanding at December 31, 2016 and December 31, 2015 | 23 | 23 | |
Additional paid-in capital | 272.5 | 266.8 | |
Retained earnings | 362.1 | 334.9 | |
Total common shareholder's equity | 657.6 | 624.7 | |
Total liabilities and shareholder's equity | $ 2,517 | $ 2,192.7 | |
[1] | There are no accumulated impairment losses. |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Customer receivables, allowance for doubtful accounts | $ 1.7 | $ 1.7 |
Common stock - par value (in dollars per share) | $ 2.5 | $ 2.5 |
Shares authorized | 50,000,000 | 50,000,000 |
Shares issued | 9,200,000 | 9,200,000 |
Shares outstanding | 9,200,000 | 9,200,000 |
Statements of Common Shareholde
Statements of Common Shareholder's Equity - USD ($) shares in Thousands, $ in Millions | Total | Common Stock | Additional Paid-In Capital | Retained Earnings |
Beginning balance (in shares) at Dec. 31, 2013 | 9,190 | |||
Beginning balance at Dec. 31, 2013 | $ 576.3 | $ 23 | $ 263.9 | $ 289.4 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 55.2 | 55.2 | ||
Dividends | (36) | (36) | ||
Share-based compensation | 1.5 | 1.5 | ||
Ending balance (in shares) at Dec. 31, 2014 | 9,190 | |||
Ending balance at Dec. 31, 2014 | 597 | $ 23 | 265.4 | 308.6 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 64.3 | 64.3 | ||
Dividends | (38) | (38) | ||
Share-based compensation | 1.4 | 1.4 | ||
Ending balance (in shares) at Dec. 31, 2015 | 9,190 | |||
Ending balance at Dec. 31, 2015 | 624.7 | $ 23 | 266.8 | 334.9 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 57.2 | 57.2 | ||
Equity contribution from parent | 2.7 | 2.7 | ||
Dividends | (30) | (30) | ||
Share-based compensation | 3 | 3 | ||
Ending balance (in shares) at Dec. 31, 2016 | 9,190 | |||
Ending balance at Dec. 31, 2016 | $ 657.6 | $ 23 | $ 272.5 | $ 362.1 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Activities | |||
Net income | $ 57.2 | $ 64.3 | $ 55.2 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 61 | 60.6 | 58.8 |
Deferred income taxes | 35.7 | 52.9 | 46 |
Other adjustments for non-cash items | 3.2 | 1.4 | 1.5 |
Changes in operating assets and liabilities | 44 | (63.1) | (47.8) |
Net cash provided by operating activities | 201.1 | 116.1 | 113.7 |
Investing Activities | |||
Property, plant and equipment purchased | (240.4) | (217.4) | (174.7) |
Property, plant and equipment purchased from affiliates | (10.8) | (0.1) | 0 |
Acquisition of gas distribution system | 0 | (11.4) | 0 |
Cash used in disposition of assets | 0 | (3.9) | (3.4) |
Proceeds from disposition of assets | 0.5 | 0.4 | 0.8 |
Net cash used in investing activities | (250.7) | (232.4) | (177.3) |
Financing Activities | |||
Issuance of short-term debt, net | 200 | 0 | 0 |
Issuance of long-term debt | 100 | 0 | 0 |
Issuance (repayment) of affiliated current borrowings, net | (225.3) | 154 | 101.6 |
Other financing | (0.7) | 0 | 0 |
Net cash provided by financing activities | 46.7 | 107 | 74.6 |
Increase (decrease) in cash and cash equivalents | (2.9) | (9.3) | 11 |
Cash and cash equivalents at beginning of year | 10.5 | 19.8 | 8.8 |
Cash and cash equivalents at end of year | 7.6 | 10.5 | 19.8 |
Supplemental Cash Flow Information | |||
Interest and related charges, excluding capitalized amounts | 29.3 | 27.6 | 26.3 |
Income taxes | (35) | 21.1 | 13.2 |
Significant noncash investing activities: | |||
Accrued capital expenditures | 19.7 | 22.2 | 17.2 |
Dominion Questar | |||
Financing Activities | |||
Equity contribution from Dominion Questar | 2.7 | 0 | 0 |
Dividends paid to Dominion Questar | $ (30) | $ (47) | $ (27) |
NATURE OF OPERATIONS
NATURE OF OPERATIONS | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF OPERATIONS | N ATURE OF O PERATIONS Questar Gas is a wholly-owned subsidiary of Dominion Questar which, effective September 2016, is a wholly-owned subsidiary of Dominion. Questar Gas distributes natural gas as a public utility in Utah, southwestern Wyoming and a small portion of southeastern Idaho. The Utah, Wyoming and Idaho Commissions have granted Questar Gas the necessary regulatory approvals to serve these areas. Questar Gas also has long-term franchises granted by communities and counties within its service area. Revenue generated by Questar Gas is based primarily on rates established by the Utah and Wyoming Commissions. The Idaho Commission has contracted with the Utah Commission for rate oversight of Questar Gas operations. Wexpro provides the majority of Questar Gas' natural gas supply and Questar Pipeline provides the majority of Questar Gas' transportation and storage services. Questar Gas manages its daily operations through one primary operating segment. It also reports a Corporate and Other segment that primarily includes specific items attributable to its operating segment that are not included in profit measures evaluated by executive management in assessing the segment's performance or in allocating resources. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | S IGNIFICANT A CCOUNTING P OLICIES General Questar Gas makes certain estimates and assumptions in preparing its Financial Statements in accordance with GAAP. These estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues, expenses and cash flows for the periods presented. Actual results may differ from those estimates. Questar Gas reports certain contracts and instruments at fair value. See Note 5 for further information on fair value measurements. Certain amounts in the 2015 and 2014 Financial Statements and footnotes have been reclassified to conform to the 2016 presentation for comparative purposes. The reclassifications did not affect Questar Gas' net income, total assets, liabilities, equity or cash flows, except for the reclassification of debt issuance costs. Operating Revenue Operating revenue is recorded on the basis of services rendered, commodities delivered or contracts settled and includes amounts yet to be billed to customers. Questar Gas collects sales taxes; however, these amounts are excluded from revenue. Questar Gas’ customer receivables at December 31, 2016 and 2015 included $88.6 million and $91.0 million , respectively, of accrued unbilled revenue based on estimated amounts of natural gas delivered but not yet billed to its customers. The primary types of sales and service activities reported as operating revenue for Questar Gas are as follows: • Regulated gas sales consist of delivery of natural gas to residential, commercial and industrial customers; • Gas transportation consists of transportation of gas for industrial customers who buy their own gas supply; and • Other primarily consists of connection fees, royalties, miscellaneous product sales, etc. Cost of Sales Questar Gas obtains the majority of its gas supply from Wexpro's cost-of-service production and pays Wexpro an operator service fee based on the terms of the Wexpro Agreement and the Wexpro II Agreement. Questar Gas also obtains transportation and storage services from Questar Pipeline. See Note 18 for more information. During the second and third quarters of the year, a significant portion of the natural gas from Wexpro production is injected into underground storage. This gas is withdrawn from storage as needed during the heating season in the first and fourth quarters. The cost of natural gas sold is credited with the value of natural gas as it is injected into storage and debited as it is withdrawn from storage. The details of Questar Gas' cost of sales are as follows: Year Ended December 31, 2016 2015 2014 (millions) Gas purchases $ 102.0 $ 82.5 $ 136.5 Affiliated operator service fee 311.7 319.0 349.7 Transportation and storage (1) 79.3 79.2 79.6 Gathering 23.7 22.1 21.0 Royalties 26.3 33.3 60.1 Storage (injection), net (5.5 ) (3.5 ) (1.1 ) Purchased-gas account adjustment (0.6 ) 20.5 (45.8 ) Other 5.2 5.0 4.8 Total cost of sales $ 542.1 $ 558.1 $ 604.8 (1) See Note 18 for amounts attributable to related parties. Purchased Gas-Deferred Costs Where permitted by regulatory authorities, the differences between Questar Gas’ purchased gas expenses and the related levels of recovery for these expenses in current rates are deferred and matched against recoveries in future periods. The deferral of gas costs in excess of current period recovery is recognized as a regulatory asset, while rate recovery in excess of current period gas costs is recognized as a regulatory liability. Virtually all of Questar Gas' natural gas purchases are either subject to deferral accounting or are recovered from the customer in the same accounting period as the sale. Income Taxes For 2016, a consolidated federal income tax return will be filed for Dominion Questar, including Questar Gas, for the period January 1, 2016 through September 16, 2016. Questar Gas will also be part of the consolidated federal income tax return filed by Dominion for the period September 17, 2016 through December 31, 2016. Questar Gas will be part of the consolidated Dominion federal income tax return for the full year 2017 and going forward. In addition, where applicable, combined income tax returns for Dominion and its subsidiaries are filed in various states; otherwise, separate state income tax returns are filed. Questar Gas participates in intercompany tax sharing agreements with Dominion and its subsidiaries. Current income taxes are based on taxable income or loss and credits determined on a separate company basis. Under the agreements, if a subsidiary incurs a tax loss or earns a credit, recognition of current income tax benefits is limited to refunds of prior year taxes obtained by the carryback of the net operating loss or credit or to the extent the tax loss or credit is absorbed by the taxable income of other Dominion consolidated group members. Otherwise, the net operating loss or credit is carried forward and is recognized as a deferred tax asset until realized. Accounting for income taxes involves an asset and liability approach. Deferred income tax assets and liabilities are provided, representing future effects on income taxes for temporary differences between the bases of assets and liabilities for financial reporting and tax purposes. Accordingly, deferred taxes are recognized for the future consequences of different treatments used for the reporting of transactions in financial accounting and income tax returns. Questar Gas establishes a valuation allowance when it is more-likely-than-not that all, or a portion, of a deferred tax asset will not be realized. A regulatory asset is recognized if it is probable that future revenues will be provided for the payment of deferred tax liabilities. Questar Gas recognizes positions taken, or expected to be taken, in income tax returns that are more-likely-than-not to be realized, assuming that the position will be examined by tax authorities with full knowledge of all relevant information. If it is not more-likely-than-not that a tax position, or some portion thereof, will be sustained, the related tax benefits are not recognized in the financial statements. Unrecognized tax benefits may result in an increase in income taxes payable, a reduction of income tax refunds receivable or changes in deferred taxes. Also, when uncertainty about the deductibility of an amount is limited to the timing of such deductibility, the increase in income taxes payable (or reduction in tax refunds receivable) is accompanied by a decrease in deferred tax liabilities. Except when such amounts are presented net with amounts receivable from or amounts prepaid to tax authorities, noncurrent income taxes payable related to unrecognized tax benefits are classified in other deferred credits and other liabilities in the Balance Sheets and current payables are included in accounts payable and accrued expenses in the Balance Sheets. Questar Gas recognizes interest on underpayments and overpayments of income taxes in interest expense and other income, respectively. Penalties are also recognized in other income. Questar Gas' interest and penalties were immaterial in 2016 , 2015 and 2014 . At December 31, 2016 , Questar Gas' Balance Sheet included $1.4 million of federal income taxes payable and $1.7 million of state income taxes payable. At December 31, 2015 , Questar Gas' Balance Sheet included $34.2 million of affiliated receivables, representing current year excess federal income tax payments expected to be refunded, and $1.1 million of state income taxes payable. In April 2016, Questar Gas received a $35.0 million refund of its 2015 income tax payments. Investment tax credits are deferred and amortized over the service lives of the properties giving rise to the credits. Cash and Cash Equivalents Current banking arrangements generally do not require checks to be funded until they are presented for payment. At December 31, 2016 and 2015, accounts payable and accrued expenses included $7.7 million and $4.0 million , respectively, of check outstanding but not yet presented for payment. For purposes of the Statements of Cash Flows, cash and cash equivalents include cash on hand, cash in banks and temporary investments purchased with an original maturity of three months or less. Derivative Instruments Questar Gas uses derivative instruments such as physical forwards and options to manage the commodity risk of its business operations. All derivatives, except those for which an exception applies, are required to be reported in the Balance Sheets at fair value. Derivative contracts representing unrealized gain positions and purchased options are reported as derivative assets. Derivative contracts representing unrealized losses and options sold are reported as derivative liabilities. One of the exceptions to fair value accounting, normal purchases and normal sales, may be elected when the contract satisfies certain criteria, including a requirement that physical delivery of the underlying commodity is probable. Expenses and revenues resulting from deliveries under normal purchase contracts and normal sales contracts, respectively, are included in earnings at the time of contract performance. Questar Gas does not offset amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral against amounts recognized for derivative instruments executed with the same counterparty under the same master netting arrangement. See Note 6 for further information about derivatives. Changes in the fair value of derivative instruments result in the recognition of regulatory assets or regulatory liabilities. Realized gains or losses on the derivative instruments are generally recognized when the related transactions impact earnings. Property, Plant and Equipment Property, plant and equipment is recorded at lower of original cost or fair value, if impaired. Capitalized costs include labor, materials and other direct and indirect costs such as asset retirement costs, AFUDC and overhead costs. The cost of repairs and maintenance, including minor additions and replacements, is generally charged to expense as it is incurred. In 2016 , 2015 and 2014 , Questar Gas capitalized AFUDC to property, plant and equipment of $0.4 million , $0.1 million and $1.4 million , respectively. The undepreciated cost of property, less salvage value, is generally charged to accumulated depreciation at retirement. Cost of removal collections from utility customers not representing AROs are recorded as regulatory liabilities. For property subject to cost-of-service rate regulation that will be abandoned significantly before the end of its useful life, the net carrying value is reclassified from plant-in-service when it becomes probable it will be abandoned. Depreciation of property, plant and equipment is computed on the straight-line method based on projected service lives. Questar Gas' average composite depreciation rates on utility property, plant and equipment are as follows: Year Ended December 31, 2016 2015 2014 (percent) Distribution 2.42 2.60 2.71 General and other 3.79 3.49 4.29 Long-Lived and Intangible Assets Questar Gas performs an evaluation for impairment whenever events or changes in circumstances indicate that the carrying amount of long-lived assets or intangible assets with finite lives may not be recoverable. A long-lived or intangible asset is written down to fair value if the sum of its expected future undiscounted cash flows is less than its carrying amount. Intangible assets with finite lives are amortized over their estimated useful lives. Regulatory Assets and Liabilities The accounting for Questar Gas' operations differs from the accounting for nonregulated operations in that it is required to reflect the effect of rate regulation in its Financial Statements. For regulated businesses subject to state cost-of-service rate regulation, regulatory practices that assign costs to accounting periods may differ from accounting methods generally applied by nonregulated companies. When it is probable that regulators will permit the recovery of current costs through future rates charged to customers, these costs that otherwise would be expensed by nonregulated companies are deferred as regulatory assets. Likewise, regulatory liabilities are recognized when it is probable that regulators will require customer refunds through future rates or when revenue is collected from customers for expenditures that have yet to be incurred. Generally, regulatory assets and liabilities are amortized into income over the period authorized by the regulator. Questar Gas evaluates whether or not recovery of its regulatory assets through future rates is probable and makes various assumptions in its analyses. The expectations of future recovery are generally based on orders issued by regulatory commissions, legislation or historical experience, as well as discussions with applicable regulatory authorities and legal counsel. If recovery of a regulatory asset is determined to be less than probable, it will be written off in the period such assessment is made. Asset Retirement Obligations Questar Gas recognizes AROs at fair value as incurred or when sufficient information becomes available to determine a reasonable estimate of the fair value of future retirement activities to be performed for which a legal obligation exists. These amounts are generally capitalized as costs of the related tangible long-lived assets. Since relevant market information is not available, fair value is estimated using discounted cash flow analyses. Periodically, Questar Gas evaluates the key assumptions underlying its AROs including estimates of the amounts and timing of future cash flows associated with retirement activities. AROs are adjusted when significant changes in these assumptions are identified. Questar Gas reports accretion of AROs and depreciation on asset retirement costs associated with its natural gas pipeline assets as an adjustment to the related regulatory liabilities when revenue is recoverable from customers for AROs. Debt Issuance Costs Questar Gas defers and amortizes debt issuance costs and debt premiums or discounts over the expected lives of the respective debt issues, considering maturity dates and, if applicable, redemption rights held by others. Effective January 2016, deferred debt issuance costs are recorded as a reduction in long-term debt in the Balance Sheets. Such costs had previously been recorded as an asset in other noncurrent assets in the Balance Sheets. Amortization of the issuance costs is reported as interest expense. Unamortized costs associated with redemptions of debt securities prior to stated maturity dates are generally recognized and recorded in interest expense immediately. As permitted by regulatory authorities, gains or losses resulting from the refinancing of debt allocable to utility operations subject to cost-based rate regulation are deferred and amortized over the lives of the new issuances. Inventories Materials and supplies inventories are valued primarily using the weighted-average cost method. Stored gas inventory for Questar Gas used in gas distribution operations is valued using the weighted-average cost method. Goodwill Questar Gas evaluates goodwill for impairment annually as of December 31 through 2016 (as of April 1 effective 2017) and whenever an event occurs or circumstances change in the interim that would more-likely-than-not reduce the fair value of a reporting unit below its carrying amount. New Accounting Standards In May 2014, the FASB issued revised accounting guidance for revenue recognition from contracts with customers. The core principle of this revised accounting guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendments in this update also require disclosure of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. For Questar Gas, the revised accounting guidance is effective for interim and annual periods beginning January 1, 2018. We have completed the preliminary stages of evaluating the impact of this guidance and, pending evaluation of the items discussed below, expect no significant impact on our results of operations. Now that our preliminary evaluation is complete, we will expand the scope of our assessment to include all contracts with customers. In addition, we are considering certain issues that could potentially change the accounting for certain transactions. Among the issues being considered are accounting for contributions in aid of construction, recognition of revenue when collectability is in question, recognition of revenue in contracts with variable consideration and accounting for alternative revenue programs. Questar Gas plans on applying the standard using the modified retrospective method as opposed to the full retrospective method. |
OPERATING REVENUE
OPERATING REVENUE | 12 Months Ended |
Dec. 31, 2016 | |
Regulated and Unregulated Operating Revenue [Abstract] | |
OPERATING REVENUE | O PERATING R EVENUE Questar Gas' operating revenue consists of the following: Year Ended December 31, 2016 2015 2014 (millions) Residential and commercial gas sales $ 854.6 $ 847.3 $ 875.7 Industrial gas sales 17.3 23.6 29.9 Gas transportation 24.6 21.2 17.9 Other (1) 24.8 25.5 37.4 Total operating revenue $ 921.3 $ 917.6 $ 960.9 (1) See Note 18 for amounts attributable to affiliates |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | I NCOME T AXES Details of Questar Gas' income tax expense and deferred income taxes are provided in the following tables. The components of income tax expense were as follows: Year Ended December 31, 2016 2015 2014 (millions) Current: Federal $ 1.2 $ (16.0 ) $ (11.9 ) State 0.2 (2.0 ) (1.9 ) Total current expense (benefit) 1.4 (18.0 ) (13.8 ) Deferred: Federal 29.9 48.8 42.4 State 5.9 4.2 3.6 Investment tax credits (0.1 ) (0.2 ) (0.2 ) Total deferred expense 35.7 52.8 45.8 Total income tax expense $ 37.1 $ 34.8 $ 32.0 The difference between the statutory federal income tax rate and Questar Gas' effective income tax rate is explained as follows: Year Ended December 31, 2016 2015 2014 Federal income taxes statutory rate 35.0 % 35.0 % 35.0 % Increases (reductions) resulting from: State taxes, net of federal benefit 4.2 1.4 1.3 Amortization of investment tax credits related to rate-regulated assets (0.1 ) (0.2 ) (0.2 ) Other 0.2 (1.1 ) 0.6 Effective income tax rate 39.3 % 35.1 % 36.7 % Significant components of Questar Gas' deferred income taxes were as follows: At December 31, 2016 2015 (millions) Deferred income taxes: Total deferred income tax assets $ 2.0 $ 3.4 Total deferred income tax liabilities 477.8 440.1 Total deferred income tax liabilities 475.8 436.7 Total deferred income taxes: Property, plant and equipment $ 448.2 $ 403.0 Employee benefits 27.9 28.0 Deferred compensation (0.6 ) (0.9 ) Purchased gas costs 0.1 8.5 Other 0.2 (1.9 ) Total net deferred income tax liabilities 475.8 436.7 There were no unrecognized tax benefits at the beginning or end of the years ended December 31, 2016 , 2015 or 2014 . The 2016 federal income tax return has not been filed. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | F AIR V ALUE M EASUREMENTS Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (exit price) in an orderly transaction between market participants at the measurement date. However, the use of a mid-market pricing convention (the mid-point between bid and ask prices) is permitted. Fair values are based on assumptions that market participants would use when pricing an asset or liability, including assumptions about risk and the risks inherent in valuation techniques and the inputs to valuations. This includes not only the credit standing of counterparties involved and the impact of credit enhancements but also the impact of Questar Gas' own nonperformance risk on its liabilities. Fair value measurements assume that the transaction occurs in the principal market for the asset or liability (the market with the most volume and activity for the asset or liability from the perspective of the reporting entity), or in the absence of a principal market, the most advantageous market for the asset or liability (the market in which the reporting entity would be able to maximize the amount received or minimize the amount paid). Questar Gas applies fair value measurements to commodity derivative instruments in accordance with the requirements described above. Questar Gas applies credit adjustments to its derivative fair values in accordance with the requirements described above. Inputs and Assumptions Questar Gas maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. Fair value is based on actively-quoted market prices, if available. In the absence of actively-quoted market prices, price information is sought from external sources, including broker quotes and industry publications. When evaluating pricing information provided by brokers and other pricing services, Questar Gas considers whether the broker is willing and able to trade at the quoted price, if the broker quotes are based on an active market or an inactive market and the extent to which brokers are utilizing a particular model if pricing is not readily available. If pricing information from external sources is not available, or if Questar Gas believes that observable pricing is not indicative of fair value, judgment is required to develop the estimates of fair value. In those cases Questar Gas must estimate prices based on available historical and near-term future price information and certain statistical methods, including regression analysis, that reflect its market assumptions. Questar Gas' commodity derivative valuations are prepared by Dominion’s Enterprise Risk Management department which creates mark-to-market valuations for Questar Gas' derivative transactions using computer-based statistical models. The inputs that go into the market valuations are transactional information and market pricing information that resides in data warehouse databases. The majority of forward prices are automatically uploaded into the data warehouse databases from various third-party sources. Inputs obtained from third-party sources are evaluated for reliability considering the reputation, independence, market presence, and methodology used by the third-party. If forward prices are not available from third-party sources, then Dominion’s Enterprise Risk Management department models the forward prices based on other available market data. A team consisting of risk management and risk quantitative analysts meets to assess the validity of market prices and mark-to-market valuations. During this meeting, the changes in mark-to-market valuations from period to period are examined and qualified against historical expectations. If any discrepancies are identified during this process, the mark-to-market valuations or the market pricing information is evaluated further and adjusted, if necessary. For options and contracts with option-like characteristics where observable pricing information is not available from external sources, Questar Gas generally uses a modified Black-Scholes Model or other option model. The inputs and assumptions used in measuring fair value for commodity derivative contracts include the following: • Forward commodity prices • Transaction prices • Price correlation • Volumes • Commodity location • Interest rates • Credit quality of counterparties and Questar Gas • Credit enhancements • Time value Levels Questar Gas also utilizes the following fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels: • Level 1-Quoted prices (unadjusted) in active markets for identical assets and liabilities that it has the ability to access at the measurement date. • Level 2-Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable for the asset or liability, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive markets, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived from observable market data by correlation or other means. Instruments categorized in Level 2 primarily include commodity forwards and options. • Level 3-Unobservable inputs for the asset or liability, including situations where there is little, if any, market activity. Instruments categorized in Level 3 primarily include long-dated commodity derivatives. The fair value hierarchy gives the highest priority to quoted prices in active markets (Level 1) and the lowest priority to unobservable data (Level 3). In some cases, the inputs used to measure fair value might fall in different levels of the fair value hierarchy. In these cases, the lowest level input that is significant to a fair value measurement in its entirety determines the applicable level in the fair value hierarchy. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgment, considering factors specific to the asset or liability. For derivative contracts, Questar Gas recognizes transfers among Level 1, Level 2 and Level 3 based on fair values as of the first day of the month in which the transfer occurs. Transfers out of Level 3 represent assets and liabilities that were previously classified as Level 3 for which the inputs became observable for classification in either Level 1 or Level 2. Because the activity and liquidity of commodity markets vary substantially between regions and time periods, the availability of observable inputs for substantially the full term and value of Questar Gas' over-the-counter derivative contracts is subject to change. Level 3 Valuations Fair value measurements are categorized as Level 3 when price or other inputs that are considered to be unobservable are significant to their valuations. Long-dated commodity derivatives are generally based on unobservable inputs due to the length of time to settlement and the absence of market activity and are therefore categorized as Level 3. Questar Gas enters into certain physical forwards, which are considered Level 3 as they have one or more inputs that are not observable and are significant to the valuation. The discounted cash flow method is used to value Level 3 physical forward contracts. The discounted cash flow model for forwards calculates mark-to-market valuations based on forward market prices, original transaction prices, volumes, risk-free rate of return, and credit spreads. For Level 3 fair value measurements, forward market prices are considered unobservable. The unobservable inputs are developed and substantiated using historical information, available market data, third-party data, and statistical analysis. Periodically, inputs to valuation models are reviewed and revised as needed, based on historical information, updated market data, market liquidity and relationships, and changes in third-party pricing sources. The fair value of Level 3 derivatives were not material at December 31, 2016. Recurring Fair Value Measurements The following table presents Questar Gas’ assets and liabilities that are measured at fair value on a recurring basis for each hierarchy level, including both current and noncurrent portions. Questar Gas did not have any such items at December 31, 2015 . Level 1 Level 2 Level 3 Total (millions) At December 31, 2016 Assets: Derivatives: Commodity $ — $ 0.1 $ — $ 0.1 Total assets $ — $ 0.1 $ — $ 0.1 Liabilities: Derivatives: Commodity $ — $ 0.1 $ — $ 0.1 Total liabilities $ — $ 0.1 $ — $ 0.1 The following table presents the net change in Questar Gas' assets and liabilities measured at fair value on a recurring basis and included in the Level 3 fair value category. Questar Gas did not have any such items at December 31, 2015 or 2014. 2016 (millions) Beginning balance $ — Total realized and unrealized gains (losses): Included in earnings (1) 0.2 Included in regulatory assets/liabilities — Settlements (0.2 ) Ending balance $ — (1) The gains and losses included in earnings were classified in cost of sales. There were no unrealized gains or losses included in earnings in the Level 3 fair value category relating to assets/liabilities still held at the reporting date for the year ended December 31, 2016 . Fair Value of Financial Instruments Substantially all of Questar Gas' financial instruments are recorded at fair value, with the exception of the instruments described below, which are reported at historical cost. Estimated fair values have been determined using available market information and valuation methodologies considered appropriate by management. The carrying amount of cash and cash equivalents, customer receivables, accounts receivable from affiliates, short-term debt, account payable to affiliates,affiliated current borrowings, and accounts payable are representative of fair value because of the short-term nature of these instruments. For Questar Gas' financial instruments that are not recorded at fair value, the carrying amounts and estimated fair values are as follows: December 31, 2016 December 31, 2015 Carrying Amount Estimated Fair Value (1) Carrying Amount Estimated Fair Value (2) (millions) Long-term debt, including securities due within one year (3) $ 630.8 $ 672.6 $ 531.2 $ 568.4 (1) Fair value is estimated using market prices, where available, and interest rates currently available for issuance of debt with similar terms and remaining maturities. The fair value measurements are classified as Level 2. (2) Fair value is estimated using the discounted present value of cash flows using Questar Gas’ current credit risk-adjusted borrowing rates. The fair value measurements are classified as Level 2. (3) Carrying amount includes amounts which represent the unamortized debt issuance costs, discount and/or premium. |
DERIVATIVES AND HEDGE ACCOUNTIN
DERIVATIVES AND HEDGE ACCOUNTING ACTIVITIES | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES AND HEDGE ACCOUNTING ACTIVITIES | D ERIVATIVES AND H EDGE A CCOUNTING A CTIVITIES Questar Gas uses derivative instruments to manage exposure to supply and price risk. As discussed in Note 2, changes in the fair value of derivatives are deferred as regulatory assets or regulatory liabilities until the related transactions impact earnings. See Note 5 for further information about fair value measurements and associated valuation methods for derivatives. Derivative assets and liabilities are presented gross on Questar Gas' Balance Sheets. Questar Gas' derivative contracts include over-the-counter transactions, which are bilateral contracts that are transacted directly with a counterparty. At December 31, 2016 , substantially all of Questar Gas' derivative assets and liabilities were not subject to a master netting or similar arrangement. Volumes The following table presents the volume of Questar Gas' derivative activity at December 31, 2016 . These volumes are based on open derivative positions and represent the combined absolute value of their long and short positions, except in the case of offsetting transactions, for which they represent the absolute value of the net volume of their long and short positions. Current Noncurrent Natural Gas (bcf): Basis 8.8 30.5 Fair Value and Gains and Losses on Derivative Instruments The following table presents the fair values of Questar Gas' derivatives and where they are presented in its Balance Sheets. Questar Gas did not have any derivative balances at December 31, 2015 . Fair Value - Total (millions) At December 31, 2016 ASSETS Current Assets Commodity $ 0.1 $ 0.1 Total current derivative assets (1) 0.1 0.1 Total derivative assets $ 0.1 $ 0.1 LIABILITIES Current Liabilities Commodity $ 0.1 $ 0.1 Total current derivative liabilities (2) 0.1 0.1 Total derivative liabilities $ 0.1 $ 0.1 (1) Current derivative assets are presented in prepaid expenses and other current assets in Questar Gas’ Balance Sheets. (2) Current derivative liabilities are presented in other current liabilities in Questar Gas’ Balance Sheets. The following tables present the gains and losses on Questar Gas' derivatives, as well as where the associated activity is presented in its Statements of Income. Derivatives not designated as hedging instruments Amount of Gain (Loss) Recognized in Income on Derivatives (1) Year Ended December 31, 2016 2015 2014 (millions) Derivative Type and Location of Gains (Losses) Commodity (2) Purchased gas $ (0.2 ) $ — $ — Total $ (0.2 ) $ — $ — (1) Includes derivative activity amortized out of regulatory assets/liabilities. Amounts deferred into regulatory assets/liabilities have no associated effect in Questar Gas' Statements of Income. (2) Amounts recorded in Questar Gas' Statements of Income are classified in cost of sales. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | P ROPERTY, P LANT AND E QUIPMENT Major classes of property, plant and equipment and their respective balances for Questar Gas are as follows: At December 31, 2016 2015 (millions) Distribution $ 2,436.7 $ 2,186.9 General and other 369.5 320.9 Plant under construction 76.8 62.5 Total property, plant and equipment $ 2,883.0 $ 2,570.3 |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | G OODWILL The changes in Questar Gas' carrying amount and segment allocation of goodwill are presented below: Questar Gas Corporate and Other Total (millions) Balance at December 31, 2014 (1) $ 5.6 $ — $ 5.6 No events affecting goodwill — — — Balance at December 31, 2015 (1) $ 5.6 $ — $ 5.6 No events affecting goodwill — — — Balance at December 31, 2016 (1) $ 5.6 $ — $ 5.6 (1) There are no accumulated impairment losses. |
REGULATORY ASSETS AND LIABILITI
REGULATORY ASSETS AND LIABILITIES | 12 Months Ended |
Dec. 31, 2016 | |
Regulated Operations [Abstract] | |
REGULATORY ASSETS AND LIABILITIES | R EGULATORY A SSETS AND L IABILITIES Regulatory assets and liabilities include the following: At December 31, 2016 2015 (millions) Regulatory assets: Purchased-gas adjustment (1) $ 3.4 $ 18.9 EEP (2) 1.1 1.1 Contract withholding (3) 2.6 20.3 Deferred cost-of-service gas charges (4) — 19.5 Pipeline integrity costs (5) 1.9 6.3 CET (6) — 3.6 Other 0.6 0.1 Regulatory assets-current 9.6 69.8 Deferred cost-of-service gas charges (4) — 8.1 Cost of reacquired debt (7) 3.2 3.8 Pipeline integrity costs (5) 2.3 — Regulatory assets-non-current 5.5 11.9 Total regulatory assets $ 15.1 $ 81.7 Regulatory liabilities: CET (6) $ 2.9 $ — Cost of plant removal and AROs (8) 3.5 3.7 Other 0.1 0.3 Regulatory liabilities-current (9) 6.5 4.0 Cost of plant removal and AROs (8) 189.1 65.5 Income taxes refundable to customers (10) — 0.1 Regulatory liabilities-non-current $ 189.1 $ 65.6 Total regulatory liabilities $ 195.6 $ 69.6 (1) Purchased-gas costs that are different from those provided for in present rates are accumulated and recovered or credited through future rate changes. (2) The EEP relates to funds expended for promoting the conservation of natural gas through advertising, rebates for efficient homes and appliances and home energy audits. Costs are recovered from customers through periodic rate adjustments. Costs incurred in excess of recoveries result in an asset; recoveries in excess of costs incurred result in a liability. (3) In 2016, Questar Gas recorded a regulatory asset of $2.6 million for a disputed amount withheld from a supplier of storage services. The amount withheld is expected to be recovered from customers if it is determined that Questar Gas is required to pay the supplier. The $20.3 million withheld from a supplier of gathering services as of year-end 2015, per the dispute settlement agreement, was resolved and reversed in March 2016. For further details, see Note 16. (4) Operating and maintenance, depreciation, depletion and amortization, production taxes and royalties on cost-of-service gas production and future expenses related to abandonment of Wexpro-operated gas and oil wells. Noncurrent cost-of-service gas charges also include amounts for production imbalances that will be recovered from customers at the end of the related gas wells' useful lives. These costs were transferred to Wexpro in September 2016. (5) The costs of complying with pipeline-integrity regulations are recovered in rates subject to a Utah Commission order. Questar Gas is allowed to recover $7.0 million per year. Costs incurred in excess of this amount will be recovered in future rate changes. (6) Represents the difference between actual and allowed revenues. Any deficiency in amounts collected are recovered through periodic rate adjustments. (7) Gains and losses on the reacquisition of debt by rate-regulated companies are deferred and amortized as interest expense over the would-be remaining life of the reacquired debt. The reacquired debt costs had a weighted-average life of approximately 6.1 years as of December 31, 2016 . (8) Cost of plant removal and AROs represent amounts recovered from customers for costs of future activities to remove assets that are expected to be incurred at the time of retirement. (9) Current regulatory liabilities are presented in other liabilities in the Balance Sheets. (10) Income taxes refundable to customers arise from adjustments to deferred taxes, refunded over the life of the related property, plant and equipment. At December 31, 2016 and 2015, Questar Gas has approximately $2.6 million and $20.3 million , respectively, of regulatory assets that were not earning a return. These amounts represented amounts withheld from suppliers for storage and gathering services. |
REGULATORY MATTERS
REGULATORY MATTERS | 12 Months Ended |
Dec. 31, 2016 | |
Regulated Operations [Abstract] | |
REGULATORY MATTERS | R EGULATORY M ATTERS As a public utility, Questar Gas is subject to the jurisdiction of the Utah Commission and the Wyoming Commission. Natural gas sales and transportation services are provided under rate schedules approved by the two regulatory commissions. Questar Gas has an infrastructure cost-tracking mechanism that allows it to place into rate base, and earn a return on, capital expenditures associated with a multi-year natural gas infrastructure-replacement program upon the completion of each project. A 2014 Utah general rate case reset the recovery of costs under the infrastructure-replacement program into general rates until Questar Gas invested $84 million in new pipelines. This dollar threshold was met in November 2014, and thereafter Questar Gas has been able to recover program capital expenditures through the infrastructure-replacement mechanism. Questar Gas spent approximately $70 million in 2016 under this program. In July 2016, Questar Gas filed a general rate case with the Utah Commission. However, as part of the Settlement Stipulation Agreement approved in August 2016 relating to the Dominion Questar Combination, Questar Gas agreed to withdraw the general rate case and not file a new general rate case to adjust its base distribution non-gas rates until July 1, 2019, unless otherwise ordered by the Utah Commission. A Settlement Stipulation Agreement was also approved by the Wyoming Commission in September 2016, relating to the Dominion Questar Combination, in which Questar Gas agreed to not file a general rate case application with a requested rate effective date earlier than January 1, 2020. Information regarding the Dominion Questar Combination was also provided to the Idaho Commission, who acknowledged the Dominion Questar Combination in October 2016 and directed Dominion Questar to notify the Idaho Commission when it makes filings with the Utah Commission. In October 2016, Questar Gas filed for a combined $8.7 million gas cost increase with the Utah and Wyoming Commissions. The Utah and Wyoming Commissions approved the rate filing effective November 1, 2016, reflecting a forecasted increase in commodity costs. |
ASSET RETIREMENT OBLIGATIONS
ASSET RETIREMENT OBLIGATIONS | 12 Months Ended |
Dec. 31, 2016 | |
Asset Retirement Obligation [Abstract] | |
ASSET RETIREMENT OBLIGATIONS | A SSET R ETIREMENT O BLIGATIONS AROs represent obligations that result from laws, statutes, contracts and regulations related to the eventual retirement of certain of Questar Gas' long-lived assets. Revisions to estimates result from material changes in the expected timing or amount of cash flows associated with AROs. As a result of a change in the estimated timing of cash flows for the interim retirement of natural gas pipeline components, Questar Gas recorded an increase of $75.1 million to AROs in the third quarter of 2016 . The current portion of the ARO balance is $1.6 million and is included in other current liabilities in the Balance Sheets. The ARO liability is adjusted to present value each period through an accretion calculation using a credit-adjusted risk-free interest rate. Changes in Questar Gas' AROs from the Balance Sheets were as follows: Amount (millions) AROs at December 31, 2014 $ 0.6 AROs at December 31, 2015 $ 0.6 Accretion 2.9 Revisions in estimated cash flows 75.1 Liabilities settled (0.8 ) AROs at December 31, 2016 $ 77.8 |
SHORT-TERM DEBT AND CREDIT AGRE
SHORT-TERM DEBT AND CREDIT AGREEMENTS | 12 Months Ended |
Dec. 31, 2016 | |
Short-term Debt, Other Disclosures [Abstract] | |
SHORT-TERM DEBT AND CREDIT AGREEMENTS | S HORT -T ERM D EBT AND C REDIT A GREEMENTS Questar Gas uses short-term debt to fund working capital requirements and as a bridge to long-term debt financings. The levels of borrowing may vary significantly during the course of the year, depending upon the timing and amount of cash requirements not satisfied by cash from operations. Questar Gas’ short-term financing is supported by the two joint revolving credit facilities with Dominion, Virginia Power and Dominion Gas, to which Questar Gas was added as a co-borrower in November 2016. In December 2016, Questar Gas entered into a commercial paper program pursuant to which it began accessing the commercial paper markets. These credit facilities can be used for working capital, as support for the combined commercial paper programs of Dominion, Virginia Power, Dominion Gas and Questar Gas and for other general corporate purposes. Questar Gas' share of commercial paper and letters of credit outstanding under its joint credit facilities with Dominion, Virginia Power and Dominion Gas were as follows: Facility Limit (1) Outstanding Commercial Paper (2) Outstanding Letters of Credit (millions) At December 31, 2016 Joint revolving credit facility(1) $ 500.0 $ 200.0 $ — Joint revolving credit facility(1) 500.0 — — Total $ 1,000.0 $ 200.0 $ — (1) A maximum of a combined $1.0 billion of the facilities is available to Questar Gas, assuming adequate capacity is available after giving effect to uses by co-borrowers Dominion, Virginia Power and Dominion Gas. Sub-limits for Questar Gas are set within the facility limit but can be changed at the option of the borrowers multiple times per year. At December 31, 2016, the sub-limit for Questar Gas was an aggregate $250 million . If Questar Gas has liquidity needs in excess of its sub-limit, the sub-limit may be changed or such needs may be satisfied through short-term intercompany borrowings from Dominion. In May 2016, the maturity date for these facilities is April 2020. These credit facilities can be used to support bank borrowings and the issuance of commercial paper, as well as to support up to $1.0 billion (or the sub-limit, whichever is less) of letters of credit. (2) The weighted-average interest rate of the outstanding commercial paper supported by these credit facilities was 1.10% at December 31, 2016. Any new debt issuance by Questar Gas is subject to approval by the Wyoming Commission. |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | L ONG -T ERM D EBT At December 31, 2016 Weighted- average Coupon (1) 2016 2015 (millions, except percentages) Unsecured Senior and Medium-Term Notes: 2.98% to 7.20%, due 2017 to 2051 4.84 % $ 634.5 $ 534.5 Total principal 634.5 534.5 Securities due within one year 6.85 % (14.5 ) — Debt issuance costs (3.7 ) (3.3 ) Total long-term debt $ 616.3 $ 531.2 (1) Represents weighted-average coupon rates for debt outstanding as of December 31, 2016. Based on stated maturity dates , the scheduled principal payments of long-term debt at December 31, 2016, were as follows: 2017 2018 2019 2020 2021 Thereafter Total (millions, except percentages) Questar Gas $ 14.5 $ 120.0 $ — $ — $ — $ 500.0 $ 634.5 Weighted-average coupon 6.85 % 5.72 % 4.57 % Questar Gas short-term credit facilities and long-term debt agreements contain customary covenants and default provisions. As of December 31, 2016, there were no events of default under these covenants. |
DIVIDEND RESTRICTIONS
DIVIDEND RESTRICTIONS | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Restrictions on Dividends, Loans and Advances Disclosure [Abstract] | |
DIVIDEND RESTRICTIONS | D IVIDEND R ESTRICTIONS The Utah Commission may prohibit any public service company, including Questar Gas, from declaring or paying a dividend to an affiliate if it is determined that the capital of Questar Gas is being impaired or that its service to the public is likely to become impaired. At December 31, 2016, the Utah Commission had not restricted the payment of dividends by Questar Gas. |
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
EMPLOYEE BENEFITS | E MPLOYEE B ENEFITS Questar Gas participates in retirement benefit plans sponsored by Dominion Questar, which provide certain retirement benefits to eligible active employees, retirees and qualifying dependents of Questar Gas. Under the terms of its benefit plans, Dominion Questar reserves the right to change, modify or terminate the plans. From time to time in the past, benefits have changed, and some of these changes have reduced benefits. Pension benefits for Questar Gas employees are covered by the Dominion Questar Corporate Retirement Plan, a defined benefit pension plan sponsored by Dominion Questar that provides benefits to multiple Dominion Questar subsidiaries. Retirement benefits payable are based primarily on years of service, age and the employee's compensation. As a participating employer, Questar Gas is subject to Dominion Questar's funding policy, which is to contribute annually an amount that is in accordance with the provisions of ERISA. During 2016, Questar Gas made $11.3 million of contributions to the Dominion Questar Retirement Plan. No contributions to this plan by Questar Gas are currently expected in 2017. Net periodic pension cost related to this plan was $6.4 million , $10.4 million and $8.5 million in 2016, 2015 and 2014, respectively, recorded in other operations and maintenance expense in the Statements of Income. The funded status of various Dominion Questar subsidiary groups and employee compensation are the basis for determining the share of total pension costs for participating Dominion Questar subsidiaries. At December 31, 2016 and 2015, the amount due from Dominion Questar associated with this plan, was $87.8 million and $82.8 million , respectively, recorded in receivables from affiliates in Questar Gas' Balance Sheet. Retiree healthcare and life insurance benefits for Questar Gas employees are covered by the Dominion Questar Corporation Umbrella Health Plan, a plan sponsored by Dominion Questar that provides certain retiree healthcare and life insurance benefits to multiple Dominion Questar subsidiaries. Annual employee premiums are based on several factors such as retirement date and years of service. Net periodic benefit cost related to this plan was $0.8 million , $0.9 million and $0.8 million for 2016, 2015 and 2014, respectively, recorded in other operations and maintenance expense in the Statements of Income. Employee headcount is the basis for determining the share of total other postretirement benefit costs for participating Dominion Questar subsidiaries. At December 31, 2016, the amount due to Dominion Questar associated with this plan was $13.0 million and is reflected as payables to affiliates in Questar Gas' Balance Sheet. The amount due to Dominion Questar at December 31, 2015 was $15.3 million and is included in receivables from affiliates in Questar Gas' Balance Sheet. Dominion Questar holds investments in trusts to fund employee benefit payments for the pension and other postretirement benefit plans in which Questar Gas' employees participate. Any investment-related declines in these trusts will result in future increases in the net periodic cost recognized for such employee benefit plans and will be included in the determination of the amount of cash that Questar Gas will provide to Dominion Questar for its share of employee benefit plan contributions. Defined Contribution Plan Questar Gas also participates in a Dominion Questar-sponsored defined contribution plan, The Dominion Questar 401(k) Retirement Income Plan, which covers multiple Dominion Questar subsidiaries. Questar Gas recognized $4.7 million , $4.5 million and $4.5 million of expense in other operations and maintenance expense in the Statements of Income in 2016, 2015 and 2014, respectively, as employer matching contributions to these plan. Share-based Compensation Prior to the Dominion Questar Combination, Questar Gas employees participated in certain share-based compensation plans of Dominion Questar. Effective with the Dominion Questar Combination all such awards vested on September 16, 2016. Questar Gas had no share-based compensation balances as of December 31, 2016. Total share-based compensation expense amounted to $3.0 million in 2016 compared to $1.4 million in 2015 and $1.6 million in 2014 . |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | C OMMITMENTS AND C ONTINGENCIES As a result of issues generated in the ordinary course of business, Questar Gas is involved in legal proceedings before various courts and is periodically subject to governmental examinations (including by regulatory authorities), inquiries and investigations. Certain legal proceedings and governmental examinations involve demands for unspecified amounts of damages, are in an initial procedural phase, involve uncertainty as to the outcome of pending appeals or motions, or involve significant factual issues that need to be resolved, such that it is not possible for Questar Gas to estimate a range of possible loss. For such matters for which Questar Gas cannot estimate a range of possible loss, a statement to this effect is made in the description of the matter. Other matters may have progressed sufficiently through the litigation or investigative processes such that Questar Gas is able to estimate a range of possible loss. For legal proceedings and governmental examinations for which Questar Gas is able to reasonably estimate a range of possible losses, an estimated range of possible loss is provided, in excess of the accrued liability (if any) for such matters. Any accrued liability is recorded on a gross basis with a receivable also recorded for any probable insurance recoveries. Estimated ranges of loss are inclusive of legal fees and net of any anticipated insurance recoveries. Any estimated range is based on currently available information and involves elements of judgment and significant uncertainties. Any estimated range of possible loss may not represent Questar Gas' maximum possible loss exposure. The circumstances of such legal proceedings and governmental examinations will change from time to time and actual results may vary significantly from the current estimate. For current proceedings not specifically reported below, management does not anticipate that the liabilities, if any, arising from such proceedings would have a material effect on the financial position, liquidity or results of operations of the Questar Gas. In May 2012, Questar Gas filed a complaint against a supplier for breach of contract relating to certain charges for gathering services. In March 2016, Questar Gas settled this matter which resulted in no material impact to Questar Gas's results of operation, financial position or cash flows. The CERCLA, as amended, provides for immediate response and removal actions coordinated by the EPA in the event of threatened releases of hazardous substances into the environment and authorizes the U.S. government either to clean up sites at which hazardous substances have created actual or potential environmental hazards or to order persons responsible for the situation to do so. Under the CERCLA, as amended, generators and transporters of hazardous substances, as well as past and present owners and operators of contaminated sites, can be jointly, severally and strictly liable for the cost of cleanup. These potentially responsible parties can be ordered to perform a cleanup, be sued for costs associated with an EPA-directed cleanup, voluntarily settle with the U.S. government concerning their liability for cleanup costs, or voluntarily begin a site investigation and site remediation under state oversight. Questar Gas has determined that it is associated with two former manufactured gas plant sites that contain coal tar and other potentially harmful materials. None of the former sites with which Questar Gas is associated is under investigation by any state or federal environmental agency. Due to the uncertainty surrounding the sites, Questar Gas is unable to make an estimate of the potential financial statement impacts. Commitments Currently, the majority of Questar Gas' natural gas supply is provided by cost-of-service reserves developed and produced by Wexpro. In 2016 , Questar Gas purchased the remainder of its gas supply from multiple third parties under index-based or fixed-price contracts. Questar Gas has commitments to purchase gas for $29.3 million in 2017 , $25.2 million in 2018 and 2019 , $25.4 million in 2020 and $25.2 million in 2021 based on current prices. Generally, at the conclusion of the heating season and after a bid process, new agreements for the next heating season are put in place. Questar Gas bought natural gas under third-party purchase agreements amounting to $102.0 million in 2016 , $82.4 million in 2015 and $135.8 million in 2014 . In addition, Questar Gas stores gas during off-peak periods (typically during the summer) and withdraws gas from storage to meet peak gas demand (typically in the winter). Questar Gas has contracted for transportation and underground storage services with Questar Pipeline. Annual payments for these services are expected to amount to $44.0 million in 2017 , $13.0 million in 2018 , $3.8 million in 2019 , $1.9 million in 2020 , and $1.6 million in 2021 . Questar Gas has third-party transportation and gathering commitments requiring yearly payments of $27.8 million in 2017 , $24.4 million in 2018 , $22.7 million in 2019 and 2020 , and $19.6 million in 2021 . |
CREDIT RISK
CREDIT RISK | 12 Months Ended |
Dec. 31, 2016 | |
Risks and Uncertainties [Abstract] | |
CREDIT RISK | C REDIT R ISK Credit risk is the risk of financial loss if counterparties fail to perform their contractual obligations. In order to minimize overall credit risk, credit policies are maintained, including requiring customer deposits and the evaluation of counterparty financial condition. In addition, counterparties may make available collateral, including letters of credit or cash held as margin deposits, as a result of exceeding agreed-upon credit limits, or may be required to prepay the transaction. Questar Gas maintains a provision for credit losses based on factors surrounding the credit risk of its customers, historical trends and other information. Management believes, based on credit policies and the December 31, 2016 provision for credit losses, that it is unlikely that a material adverse effect on financial position, results of operations or cash flows would occur as a result of counterparty nonperformance. |
RELATED-PARTY TRANSACTIONS
RELATED-PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
RELATED-PARTY TRANSACTIONS | R ELATED -P ARTY T RANSACTIONS Questar Gas engages in related party-transactions primarily with affiliates Wexpro, for cost-of-service natural gas supply, and Questar Pipeline, for transportation and storage services. See Notes 2 and 16 for more details. Questar Gas' receivables and payables balances with affiliates are settled based on contractual terms or on a monthly basis, depending on the nature of the underlying transactions. A discussion of significant related party transactions follows. Questar Gas participates in certain Dominion Questar benefit plans as discussed in Note 15. Dominion Questar and other affiliates provide accounting, legal, finance and certain administrative and technical services to Questar Gas. These costs are included in other operations and maintenance in the Statements of Income. The administrative charges are generally allocated based on each affiliated company's proportional share of revenues less product costs; property, plant and equipment; and labor costs. Management believes that the allocation method is reasonable. Questar Gas provides certain services to related parties, including technical services. The billed amounts of these services are allocated based on the specific nature of the charges. Management believes that the allocation methods are reasonable. The amounts of these services follow: Year Ended December 31, 2016 2015 2014 (millions) Transportation and storage services from affiliates (1) $ 72.9 $ 73.0 $ 72.9 Services provided by related parties 65 55.7 51.5 Services provided to related parties 3.2 6.7 6.1 (1) The costs of these services were included in cost of sales in Questar Gas' Statements of Income. The Dominion Questar Combination resulted in merger and restructuring costs of $13.8 million charged from Dominion Questar for the year ended December 31, 2016 . There were no merger and restructuring costs for the same prior year periods. These costs primarily consist of employee related costs allocated to Questar Gas and are included in other operations and maintenance in Questar Gas' Statements of Income. Questar Gas' borrowings under the IRCA with Dominion totaled $48.0 million as of December 31, 2016 . The weighted-average interest rate for these borrowing was 1.04% . Questar Gas' borrowings as of December 31, 2015 under the IRCA with Dominion Questar was $273.3 million and was settled at the time of the Dominion Questar Combination. Interest charges related to Questar Gas' total borrowings from Dominion and Dominion Questar totaled $1.3 million for the year ended December 31, 2016 and were immaterial for 2015 and 2014 . |
OPERATING SEGMENT
OPERATING SEGMENT | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
OPERATING SEGMENT | O PERATING S EGMENT The Corporate and Other Segment primarily includes specific items attributable to Questar Gas' operating segment that are not included in profit measures evaluated by executive management in assessing the segment's performance or in allocating resources. The net expense for specific items in 2016 primarily related to a $15.9 million ( $9.6 million after-tax) charge for transaction costs associated with the Dominion Questar Combination. These costs primarily consist of employee related costs allocated to Questar Gas and are included in other operations and maintenance in Questar Gas' Statements of Income. The following table presents segment information pertaining to Questar Gas' operations: Year Ended December 31, Questar Gas Corporate and Other Consolidated Total (millions) 2016 Operating revenue $ 921.3 $ — $ 921.3 Depreciation and amortization 61.0 — 61.0 Interest income 0.3 — 0.3 Interest expense 30.2 — 30.2 Income taxes 43.4 (6.3 ) 37.1 Net income (loss) 66.8 (9.6 ) 57.2 Capital expenditures 240.4 — 240.4 Total assets (billions) 2.5 — 2.5 2015 Operating revenue $ 917.6 $ — $ 917.6 Depreciation and amortization 55.1 — 55.1 Interest income 1.2 — 1.2 Interest expense 28.3 — 28.3 Income taxes 34.8 — 34.8 Net income (loss) 64.3 — 64.3 Capital expenditures 217.4 — 217.4 Total assets (billions) 2.2 — 2.2 2014 Operating revenue $ 960.9 $ — $ 960.9 Depreciation and amortization 53.6 — 53.6 Interest income 1.7 — 1.7 Interest expense 28.2 — 28.2 Income taxes 32.0 — 32.0 Net income (loss) 55.2 — 55.2 Capital expenditures 174.7 — 174.7 |
QUARTERLY FINANCIAL DATA (UNAUD
QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY FINANCIAL DATA (UNAUDITED) | Q UARTERLY F INANCIAL D ATA ( UNAUDITED ) A summary of Questar Gas' quarterly results of operations for the years ended December 31, 2016 and 2015 follows. Amounts reflect all adjustments necessary in the opinion of management for a fair statement of the results for the interim periods. Results for interim periods may fluctuate as a result of weather conditions, changes in rates and other factors. First Quarter Second Quarter Third Quarter Fourth Quarter Year (millions) 2016 Operating revenue $ 407.9 $ 128.2 $ 87.9 $ 297.3 $ 921.3 Income (loss) from operations 83.4 3.8 (19.8 ) 53.3 120.7 Net income (loss) 47.6 (1.6 ) (17.7 ) 28.9 57.2 2015 Operating revenue $ 374.8 $ 141.7 $ 89.3 $ 311.8 $ 917.6 Income (loss) from operations 76.6 1.4 (8.9 ) 53.5 122.6 Net income (loss) 43.8 (2.8 ) (8.8 ) 32.1 64.3 Questar Gas' 2016 results include the impact of the following significant item: • Third quarter results include a $7.7 million after tax-charge for transaction costs associated with the Dominion Questar Combination |
SUPPLEMENTAL OIL AND GAS INFORM
SUPPLEMENTAL OIL AND GAS INFORMATION (UNAUDITED) | 12 Months Ended |
Dec. 31, 2016 | |
Extractive Industries [Abstract] | |
SUPPLEMENTAL OIL AND GAS INFORMATION (UNAUDITED) | S UPPLEMENTAL O IL AND G AS I NFORMATION ( UNAUDITED ) The following information is provided with respect to estimated natural gas reserves, which are managed, developed and delivered by Wexpro at cost-of-service pursuant to the Wexpro Agreement. The estimates of proved gas reserves were prepared by Wexpro’s reservoir engineers. Gas reserve estimates are subject to numerous uncertainties inherent in estimating quantities of proved reserves, projecting future rates or production and timing of development expenditures. The accuracy of these estimates depends on the quality of available data and on engineering and geological interpretation and judgment. Reserve estimates are imprecise and will change as additional information becomes available. Geological and engineering data demonstrate with reasonable certainty that these quantities are recoverable under existing economic and operating conditions. Since the gas reserves operated by Wexpro are delivered to Questar Gas at cost-of-service, SEC guidelines with respect to standard economic assumptions are not applicable. The SEC anticipated this potential difficulty and provides that companies may give appropriate recognition to differences because of the effect of the ratemaking process. Accordingly, Wexpro uses a minimum-producing rate or maximum well-life limit to determine the ultimate quantity of gas reserves. Proved Reserves Natural Gas (Bcf) Balance at December 31, 2016 469.8 Balance at December 31, 2015 522.4 Balance at December 31, 2014 530.4 |
SIGNIFICANT ACCOUNTING POLICI28
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Use of Estimates | Questar Gas makes certain estimates and assumptions in preparing its Financial Statements in accordance with GAAP. These estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues, expenses and cash flows for the periods presented. Actual results may differ from those estimates. |
Reclassifications | Certain amounts in the 2015 and 2014 Financial Statements and footnotes have been reclassified to conform to the 2016 presentation for comparative purposes. The reclassifications did not affect Questar Gas' net income, total assets, liabilities, equity or cash flows, except for the reclassification of debt issuance costs. |
Operating Revenue | Operating Revenue Operating revenue is recorded on the basis of services rendered, commodities delivered or contracts settled and includes amounts yet to be billed to customers. Questar Gas collects sales taxes; however, these amounts are excluded from revenue. Questar Gas’ customer receivables at December 31, 2016 and 2015 included $88.6 million and $91.0 million , respectively, of accrued unbilled revenue based on estimated amounts of natural gas delivered but not yet billed to its customers. The primary types of sales and service activities reported as operating revenue for Questar Gas are as follows: • Regulated gas sales consist of delivery of natural gas to residential, commercial and industrial customers; • Gas transportation consists of transportation of gas for industrial customers who buy their own gas supply; and • Other primarily consists of connection fees, royalties, miscellaneous product sales, etc. |
Cost of Sales | Cost of Sales Questar Gas obtains the majority of its gas supply from Wexpro's cost-of-service production and pays Wexpro an operator service fee based on the terms of the Wexpro Agreement and the Wexpro II Agreement. Questar Gas also obtains transportation and storage services from Questar Pipeline. See Note 18 for more information. During the second and third quarters of the year, a significant portion of the natural gas from Wexpro production is injected into underground storage. This gas is withdrawn from storage as needed during the heating season in the first and fourth quarters. The cost of natural gas sold is credited with the value of natural gas as it is injected into storage and debited as it is withdrawn from storage. |
Purchased Gas-Deferred Costs | Purchased Gas-Deferred Costs Where permitted by regulatory authorities, the differences between Questar Gas’ purchased gas expenses and the related levels of recovery for these expenses in current rates are deferred and matched against recoveries in future periods. The deferral of gas costs in excess of current period recovery is recognized as a regulatory asset, while rate recovery in excess of current period gas costs is recognized as a regulatory liability. Virtually all of Questar Gas' natural gas purchases are either subject to deferral accounting or are recovered from the customer in the same accounting period as the sale. |
Income Taxes | Income Taxes For 2016, a consolidated federal income tax return will be filed for Dominion Questar, including Questar Gas, for the period January 1, 2016 through September 16, 2016. Questar Gas will also be part of the consolidated federal income tax return filed by Dominion for the period September 17, 2016 through December 31, 2016. Questar Gas will be part of the consolidated Dominion federal income tax return for the full year 2017 and going forward. In addition, where applicable, combined income tax returns for Dominion and its subsidiaries are filed in various states; otherwise, separate state income tax returns are filed. Questar Gas participates in intercompany tax sharing agreements with Dominion and its subsidiaries. Current income taxes are based on taxable income or loss and credits determined on a separate company basis. Under the agreements, if a subsidiary incurs a tax loss or earns a credit, recognition of current income tax benefits is limited to refunds of prior year taxes obtained by the carryback of the net operating loss or credit or to the extent the tax loss or credit is absorbed by the taxable income of other Dominion consolidated group members. Otherwise, the net operating loss or credit is carried forward and is recognized as a deferred tax asset until realized. Accounting for income taxes involves an asset and liability approach. Deferred income tax assets and liabilities are provided, representing future effects on income taxes for temporary differences between the bases of assets and liabilities for financial reporting and tax purposes. Accordingly, deferred taxes are recognized for the future consequences of different treatments used for the reporting of transactions in financial accounting and income tax returns. Questar Gas establishes a valuation allowance when it is more-likely-than-not that all, or a portion, of a deferred tax asset will not be realized. A regulatory asset is recognized if it is probable that future revenues will be provided for the payment of deferred tax liabilities. Questar Gas recognizes positions taken, or expected to be taken, in income tax returns that are more-likely-than-not to be realized, assuming that the position will be examined by tax authorities with full knowledge of all relevant information. If it is not more-likely-than-not that a tax position, or some portion thereof, will be sustained, the related tax benefits are not recognized in the financial statements. Unrecognized tax benefits may result in an increase in income taxes payable, a reduction of income tax refunds receivable or changes in deferred taxes. Also, when uncertainty about the deductibility of an amount is limited to the timing of such deductibility, the increase in income taxes payable (or reduction in tax refunds receivable) is accompanied by a decrease in deferred tax liabilities. Except when such amounts are presented net with amounts receivable from or amounts prepaid to tax authorities, noncurrent income taxes payable related to unrecognized tax benefits are classified in other deferred credits and other liabilities in the Balance Sheets and current payables are included in accounts payable and accrued expenses in the Balance Sheets. Questar Gas recognizes interest on underpayments and overpayments of income taxes in interest expense and other income, respectively. Penalties are also recognized in other income. Questar Gas' interest and penalties were immaterial in 2016 , 2015 and 2014 . At December 31, 2016 , Questar Gas' Balance Sheet included $1.4 million of federal income taxes payable and $1.7 million of state income taxes payable. At December 31, 2015 , Questar Gas' Balance Sheet included $34.2 million of affiliated receivables, representing current year excess federal income tax payments expected to be refunded, and $1.1 million of state income taxes payable. In April 2016, Questar Gas received a $35.0 million refund of its 2015 income tax payments. Investment tax credits are deferred and amortized over the service lives of the properties giving rise to the credits. |
Cash and Cash Equivalents | Cash and Cash Equivalents Current banking arrangements generally do not require checks to be funded until they are presented for payment. At December 31, 2016 and 2015, accounts payable and accrued expenses included $7.7 million and $4.0 million , respectively, of check outstanding but not yet presented for payment. For purposes of the Statements of Cash Flows, cash and cash equivalents include cash on hand, cash in banks and temporary investments purchased with an original maturity of three months or less. |
Derivative Instruments | Derivative Instruments Questar Gas uses derivative instruments such as physical forwards and options to manage the commodity risk of its business operations. All derivatives, except those for which an exception applies, are required to be reported in the Balance Sheets at fair value. Derivative contracts representing unrealized gain positions and purchased options are reported as derivative assets. Derivative contracts representing unrealized losses and options sold are reported as derivative liabilities. One of the exceptions to fair value accounting, normal purchases and normal sales, may be elected when the contract satisfies certain criteria, including a requirement that physical delivery of the underlying commodity is probable. Expenses and revenues resulting from deliveries under normal purchase contracts and normal sales contracts, respectively, are included in earnings at the time of contract performance. Questar Gas does not offset amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral against amounts recognized for derivative instruments executed with the same counterparty under the same master netting arrangement. See Note 6 for further information about derivatives. Changes in the fair value of derivative instruments result in the recognition of regulatory assets or regulatory liabilities. Realized gains or losses on the derivative instruments are generally recognized when the related transactions impact earnings. Questar Gas uses derivative instruments to manage exposure to supply and price risk. As discussed in Note 2, changes in the fair value of derivatives are deferred as regulatory assets or regulatory liabilities until the related transactions impact earnings. See Note 5 for further information about fair value measurements and associated valuation methods for derivatives. Derivative assets and liabilities are presented gross on Questar Gas' Balance Sheets. Questar Gas' derivative contracts include over-the-counter transactions, which are bilateral contracts that are transacted directly with a counterparty. At December 31, 2016 , substantially all of Questar Gas' derivative assets and liabilities were not subject to a master netting or similar arrangement. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment is recorded at lower of original cost or fair value, if impaired. Capitalized costs include labor, materials and other direct and indirect costs such as asset retirement costs, AFUDC and overhead costs. The cost of repairs and maintenance, including minor additions and replacements, is generally charged to expense as it is incurred. In 2016 , 2015 and 2014 , Questar Gas capitalized AFUDC to property, plant and equipment of $0.4 million , $0.1 million and $1.4 million , respectively. The undepreciated cost of property, less salvage value, is generally charged to accumulated depreciation at retirement. Cost of removal collections from utility customers not representing AROs are recorded as regulatory liabilities. For property subject to cost-of-service rate regulation that will be abandoned significantly before the end of its useful life, the net carrying value is reclassified from plant-in-service when it becomes probable it will be abandoned. Depreciation of property, plant and equipment is computed on the straight-line method based on projected service lives. |
Long-Lived and Intangible Assets | Long-Lived and Intangible Assets Questar Gas performs an evaluation for impairment whenever events or changes in circumstances indicate that the carrying amount of long-lived assets or intangible assets with finite lives may not be recoverable. A long-lived or intangible asset is written down to fair value if the sum of its expected future undiscounted cash flows is less than its carrying amount. Intangible assets with finite lives are amortized over their estimated useful lives. |
Regulatory Assets and Liabilities | Regulatory Assets and Liabilities The accounting for Questar Gas' operations differs from the accounting for nonregulated operations in that it is required to reflect the effect of rate regulation in its Financial Statements. For regulated businesses subject to state cost-of-service rate regulation, regulatory practices that assign costs to accounting periods may differ from accounting methods generally applied by nonregulated companies. When it is probable that regulators will permit the recovery of current costs through future rates charged to customers, these costs that otherwise would be expensed by nonregulated companies are deferred as regulatory assets. Likewise, regulatory liabilities are recognized when it is probable that regulators will require customer refunds through future rates or when revenue is collected from customers for expenditures that have yet to be incurred. Generally, regulatory assets and liabilities are amortized into income over the period authorized by the regulator. Questar Gas evaluates whether or not recovery of its regulatory assets through future rates is probable and makes various assumptions in its analyses. The expectations of future recovery are generally based on orders issued by regulatory commissions, legislation or historical experience, as well as discussions with applicable regulatory authorities and legal counsel. If recovery of a regulatory asset is determined to be less than probable, it will be written off in the period such assessment is made. |
Asset Retirement Obligations | Asset Retirement Obligations Questar Gas recognizes AROs at fair value as incurred or when sufficient information becomes available to determine a reasonable estimate of the fair value of future retirement activities to be performed for which a legal obligation exists. These amounts are generally capitalized as costs of the related tangible long-lived assets. Since relevant market information is not available, fair value is estimated using discounted cash flow analyses. Periodically, Questar Gas evaluates the key assumptions underlying its AROs including estimates of the amounts and timing of future cash flows associated with retirement activities. AROs are adjusted when significant changes in these assumptions are identified. Questar Gas reports accretion of AROs and depreciation on asset retirement costs associated with its natural gas pipeline assets as an adjustment to the related regulatory liabilities when revenue is recoverable from customers for AROs. |
Debt Issuance Costs | Debt Issuance Costs Questar Gas defers and amortizes debt issuance costs and debt premiums or discounts over the expected lives of the respective debt issues, considering maturity dates and, if applicable, redemption rights held by others. Effective January 2016, deferred debt issuance costs are recorded as a reduction in long-term debt in the Balance Sheets. Such costs had previously been recorded as an asset in other noncurrent assets in the Balance Sheets. Amortization of the issuance costs is reported as interest expense. Unamortized costs associated with redemptions of debt securities prior to stated maturity dates are generally recognized and recorded in interest expense immediately. As permitted by regulatory authorities, gains or losses resulting from the refinancing of debt allocable to utility operations subject to cost-based rate regulation are deferred and amortized over the lives of the new issuances. |
Inventories | Inventories Materials and supplies inventories are valued primarily using the weighted-average cost method. Stored gas inventory for Questar Gas used in gas distribution operations is valued using the weighted-average cost method. |
Goodwill | Goodwill Questar Gas evaluates goodwill for impairment annually as of December 31 through 2016 (as of April 1 effective 2017) and whenever an event occurs or circumstances change in the interim that would more-likely-than-not reduce the fair value of a reporting unit below its carrying amount. |
New Accounting Standards | New Accounting Standards In May 2014, the FASB issued revised accounting guidance for revenue recognition from contracts with customers. The core principle of this revised accounting guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendments in this update also require disclosure of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. For Questar Gas, the revised accounting guidance is effective for interim and annual periods beginning January 1, 2018. We have completed the preliminary stages of evaluating the impact of this guidance and, pending evaluation of the items discussed below, expect no significant impact on our results of operations. Now that our preliminary evaluation is complete, we will expand the scope of our assessment to include all contracts with customers. In addition, we are considering certain issues that could potentially change the accounting for certain transactions. Among the issues being considered are accounting for contributions in aid of construction, recognition of revenue when collectability is in question, recognition of revenue in contracts with variable consideration and accounting for alternative revenue programs. Questar Gas plans on applying the standard using the modified retrospective method as opposed to the full retrospective method. |
Fair Value Measurements | Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (exit price) in an orderly transaction between market participants at the measurement date. However, the use of a mid-market pricing convention (the mid-point between bid and ask prices) is permitted. Fair values are based on assumptions that market participants would use when pricing an asset or liability, including assumptions about risk and the risks inherent in valuation techniques and the inputs to valuations. This includes not only the credit standing of counterparties involved and the impact of credit enhancements but also the impact of Questar Gas' own nonperformance risk on its liabilities. Fair value measurements assume that the transaction occurs in the principal market for the asset or liability (the market with the most volume and activity for the asset or liability from the perspective of the reporting entity), or in the absence of a principal market, the most advantageous market for the asset or liability (the market in which the reporting entity would be able to maximize the amount received or minimize the amount paid). Questar Gas applies fair value measurements to commodity derivative instruments in accordance with the requirements described above. Questar Gas applies credit adjustments to its derivative fair values in accordance with the requirements described above. Inputs and Assumptions Questar Gas maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. Fair value is based on actively-quoted market prices, if available. In the absence of actively-quoted market prices, price information is sought from external sources, including broker quotes and industry publications. When evaluating pricing information provided by brokers and other pricing services, Questar Gas considers whether the broker is willing and able to trade at the quoted price, if the broker quotes are based on an active market or an inactive market and the extent to which brokers are utilizing a particular model if pricing is not readily available. If pricing information from external sources is not available, or if Questar Gas believes that observable pricing is not indicative of fair value, judgment is required to develop the estimates of fair value. In those cases Questar Gas must estimate prices based on available historical and near-term future price information and certain statistical methods, including regression analysis, that reflect its market assumptions. Questar Gas' commodity derivative valuations are prepared by Dominion’s Enterprise Risk Management department which creates mark-to-market valuations for Questar Gas' derivative transactions using computer-based statistical models. The inputs that go into the market valuations are transactional information and market pricing information that resides in data warehouse databases. The majority of forward prices are automatically uploaded into the data warehouse databases from various third-party sources. Inputs obtained from third-party sources are evaluated for reliability considering the reputation, independence, market presence, and methodology used by the third-party. If forward prices are not available from third-party sources, then Dominion’s Enterprise Risk Management department models the forward prices based on other available market data. A team consisting of risk management and risk quantitative analysts meets to assess the validity of market prices and mark-to-market valuations. During this meeting, the changes in mark-to-market valuations from period to period are examined and qualified against historical expectations. If any discrepancies are identified during this process, the mark-to-market valuations or the market pricing information is evaluated further and adjusted, if necessary. For options and contracts with option-like characteristics where observable pricing information is not available from external sources, Questar Gas generally uses a modified Black-Scholes Model or other option model. The inputs and assumptions used in measuring fair value for commodity derivative contracts include the following: • Forward commodity prices • Transaction prices • Price correlation • Volumes • Commodity location • Interest rates • Credit quality of counterparties and Questar Gas • Credit enhancements • Time value Levels Questar Gas also utilizes the following fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels: • Level 1-Quoted prices (unadjusted) in active markets for identical assets and liabilities that it has the ability to access at the measurement date. • Level 2-Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable for the asset or liability, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive markets, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived from observable market data by correlation or other means. Instruments categorized in Level 2 primarily include commodity forwards and options. • Level 3-Unobservable inputs for the asset or liability, including situations where there is little, if any, market activity. Instruments categorized in Level 3 primarily include long-dated commodity derivatives. The fair value hierarchy gives the highest priority to quoted prices in active markets (Level 1) and the lowest priority to unobservable data (Level 3). In some cases, the inputs used to measure fair value might fall in different levels of the fair value hierarchy. In these cases, the lowest level input that is significant to a fair value measurement in its entirety determines the applicable level in the fair value hierarchy. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgment, considering factors specific to the asset or liability. For derivative contracts, Questar Gas recognizes transfers among Level 1, Level 2 and Level 3 based on fair values as of the first day of the month in which the transfer occurs. Transfers out of Level 3 represent assets and liabilities that were previously classified as Level 3 for which the inputs became observable for classification in either Level 1 or Level 2. Because the activity and liquidity of commodity markets vary substantially between regions and time periods, the availability of observable inputs for substantially the full term and value of Questar Gas' over-the-counter derivative contracts is subject to change. Level 3 Valuations Fair value measurements are categorized as Level 3 when price or other inputs that are considered to be unobservable are significant to their valuations. Long-dated commodity derivatives are generally based on unobservable inputs due to the length of time to settlement and the absence of market activity and are therefore categorized as Level 3. Questar Gas enters into certain physical forwards, which are considered Level 3 as they have one or more inputs that are not observable and are significant to the valuation. The discounted cash flow method is used to value Level 3 physical forward contracts. The discounted cash flow model for forwards calculates mark-to-market valuations based on forward market prices, original transaction prices, volumes, risk-free rate of return, and credit spreads. For Level 3 fair value measurements, forward market prices are considered unobservable. The unobservable inputs are developed and substantiated using historical information, available market data, third-party data, and statistical analysis. Periodically, inputs to valuation models are reviewed and revised as needed, based on historical information, updated market data, market liquidity and relationships, and changes in third-party pricing sources. |
Commitments and Contingencies | As a result of issues generated in the ordinary course of business, Questar Gas is involved in legal proceedings before various courts and is periodically subject to governmental examinations (including by regulatory authorities), inquiries and investigations. Certain legal proceedings and governmental examinations involve demands for unspecified amounts of damages, are in an initial procedural phase, involve uncertainty as to the outcome of pending appeals or motions, or involve significant factual issues that need to be resolved, such that it is not possible for Questar Gas to estimate a range of possible loss. For such matters for which Questar Gas cannot estimate a range of possible loss, a statement to this effect is made in the description of the matter. Other matters may have progressed sufficiently through the litigation or investigative processes such that Questar Gas is able to estimate a range of possible loss. For legal proceedings and governmental examinations for which Questar Gas is able to reasonably estimate a range of possible losses, an estimated range of possible loss is provided, in excess of the accrued liability (if any) for such matters. Any accrued liability is recorded on a gross basis with a receivable also recorded for any probable insurance recoveries. Estimated ranges of loss are inclusive of legal fees and net of any anticipated insurance recoveries. Any estimated range is based on currently available information and involves elements of judgment and significant uncertainties. Any estimated range of possible loss may not represent Questar Gas' maximum possible loss exposure. The circumstances of such legal proceedings and governmental examinations will change from time to time and actual results may vary significantly from the current estimate. For current proceedings not specifically reported below, management does not anticipate that the liabilities, if any, arising from such proceedings would have a material effect on the financial position, liquidity or results of operations of the Questar Gas. |
Credit Risk | Credit risk is the risk of financial loss if counterparties fail to perform their contractual obligations. In order to minimize overall credit risk, credit policies are maintained, including requiring customer deposits and the evaluation of counterparty financial condition. In addition, counterparties may make available collateral, including letters of credit or cash held as margin deposits, as a result of exceeding agreed-upon credit limits, or may be required to prepay the transaction. Questar Gas maintains a provision for credit losses based on factors surrounding the credit risk of its customers, historical trends and other information. Management believes, based on credit policies and the December 31, 2016 provision for credit losses, that it is unlikely that a material adverse effect on financial position, results of operations or cash flows would occur as a result of counterparty nonperformance. |
Supplemental Oil and Gas Information | The following information is provided with respect to estimated natural gas reserves, which are managed, developed and delivered by Wexpro at cost-of-service pursuant to the Wexpro Agreement. The estimates of proved gas reserves were prepared by Wexpro’s reservoir engineers. Gas reserve estimates are subject to numerous uncertainties inherent in estimating quantities of proved reserves, projecting future rates or production and timing of development expenditures. The accuracy of these estimates depends on the quality of available data and on engineering and geological interpretation and judgment. Reserve estimates are imprecise and will change as additional information becomes available. Geological and engineering data demonstrate with reasonable certainty that these quantities are recoverable under existing economic and operating conditions. Since the gas reserves operated by Wexpro are delivered to Questar Gas at cost-of-service, SEC guidelines with respect to standard economic assumptions are not applicable. The SEC anticipated this potential difficulty and provides that companies may give appropriate recognition to differences because of the effect of the ratemaking process. Accordingly, Wexpro uses a minimum-producing rate or maximum well-life limit to determine the ultimate quantity of gas reserves. |
SIGNIFICANT ACCOUNTING POLICI29
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Cost of sales detail | The details of Questar Gas' cost of sales are as follows: Year Ended December 31, 2016 2015 2014 (millions) Gas purchases $ 102.0 $ 82.5 $ 136.5 Affiliated operator service fee 311.7 319.0 349.7 Transportation and storage (1) 79.3 79.2 79.6 Gathering 23.7 22.1 21.0 Royalties 26.3 33.3 60.1 Storage (injection), net (5.5 ) (3.5 ) (1.1 ) Purchased-gas account adjustment (0.6 ) 20.5 (45.8 ) Other 5.2 5.0 4.8 Total cost of sales $ 542.1 $ 558.1 $ 604.8 (1) See Note 18 for amounts attributable to related parties. |
Schedule of Depreciation Rates | Questar Gas' average composite depreciation rates on utility property, plant and equipment are as follows: Year Ended December 31, 2016 2015 2014 (percent) Distribution 2.42 2.60 2.71 General and other 3.79 3.49 4.29 Major classes of property, plant and equipment and their respective balances for Questar Gas are as follows: At December 31, 2016 2015 (millions) Distribution $ 2,436.7 $ 2,186.9 General and other 369.5 320.9 Plant under construction 76.8 62.5 Total property, plant and equipment $ 2,883.0 $ 2,570.3 |
OPERATING REVENUE (Tables)
OPERATING REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Regulated and Unregulated Operating Revenue [Abstract] | |
Operating Revenue | Questar Gas' operating revenue consists of the following: Year Ended December 31, 2016 2015 2014 (millions) Residential and commercial gas sales $ 854.6 $ 847.3 $ 875.7 Industrial gas sales 17.3 23.6 29.9 Gas transportation 24.6 21.2 17.9 Other (1) 24.8 25.5 37.4 Total operating revenue $ 921.3 $ 917.6 $ 960.9 (1) See Note 18 for amounts attributable to affiliates |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The components of income tax expense were as follows: Year Ended December 31, 2016 2015 2014 (millions) Current: Federal $ 1.2 $ (16.0 ) $ (11.9 ) State 0.2 (2.0 ) (1.9 ) Total current expense (benefit) 1.4 (18.0 ) (13.8 ) Deferred: Federal 29.9 48.8 42.4 State 5.9 4.2 3.6 Investment tax credits (0.1 ) (0.2 ) (0.2 ) Total deferred expense 35.7 52.8 45.8 Total income tax expense $ 37.1 $ 34.8 $ 32.0 |
Schedule of Effective Income Tax Rate Reconciliation | The difference between the statutory federal income tax rate and Questar Gas' effective income tax rate is explained as follows: Year Ended December 31, 2016 2015 2014 Federal income taxes statutory rate 35.0 % 35.0 % 35.0 % Increases (reductions) resulting from: State taxes, net of federal benefit 4.2 1.4 1.3 Amortization of investment tax credits related to rate-regulated assets (0.1 ) (0.2 ) (0.2 ) Other 0.2 (1.1 ) 0.6 Effective income tax rate 39.3 % 35.1 % 36.7 % |
Schedule of Deferred Tax Assets and Liabilities | Significant components of Questar Gas' deferred income taxes were as follows: At December 31, 2016 2015 (millions) Deferred income taxes: Total deferred income tax assets $ 2.0 $ 3.4 Total deferred income tax liabilities 477.8 440.1 Total deferred income tax liabilities 475.8 436.7 Total deferred income taxes: Property, plant and equipment $ 448.2 $ 403.0 Employee benefits 27.9 28.0 Deferred compensation (0.6 ) (0.9 ) Purchased gas costs 0.1 8.5 Other 0.2 (1.9 ) Total net deferred income tax liabilities 475.8 436.7 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table presents Questar Gas’ assets and liabilities that are measured at fair value on a recurring basis for each hierarchy level, including both current and noncurrent portions. Questar Gas did not have any such items at December 31, 2015 . Level 1 Level 2 Level 3 Total (millions) At December 31, 2016 Assets: Derivatives: Commodity $ — $ 0.1 $ — $ 0.1 Total assets $ — $ 0.1 $ — $ 0.1 Liabilities: Derivatives: Commodity $ — $ 0.1 $ — $ 0.1 Total liabilities $ — $ 0.1 $ — $ 0.1 |
Fair Value Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation | The following table presents the net change in Questar Gas' assets and liabilities measured at fair value on a recurring basis and included in the Level 3 fair value category. Questar Gas did not have any such items at December 31, 2015 or 2014. 2016 (millions) Beginning balance $ — Total realized and unrealized gains (losses): Included in earnings (1) 0.2 Included in regulatory assets/liabilities — Settlements (0.2 ) Ending balance $ — (1) The gains and losses included in earnings were classified in cost of sales. |
Schedule Carrying Amounts and Estimated Fair Value of Financial Instruments not Recorded at Fair Value | For Questar Gas' financial instruments that are not recorded at fair value, the carrying amounts and estimated fair values are as follows: December 31, 2016 December 31, 2015 Carrying Amount Estimated Fair Value (1) Carrying Amount Estimated Fair Value (2) (millions) Long-term debt, including securities due within one year (3) $ 630.8 $ 672.6 $ 531.2 $ 568.4 (1) Fair value is estimated using market prices, where available, and interest rates currently available for issuance of debt with similar terms and remaining maturities. The fair value measurements are classified as Level 2. (2) Fair value is estimated using the discounted present value of cash flows using Questar Gas’ current credit risk-adjusted borrowing rates. The fair value measurements are classified as Level 2. (3) Carrying amount includes amounts which represent the unamortized debt issuance costs, discount and/or premium. |
DERIVATIVES AND HEDGE ACCOUNT33
DERIVATIVES AND HEDGE ACCOUNTING ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | The following table presents the volume of Questar Gas' derivative activity at December 31, 2016 . These volumes are based on open derivative positions and represent the combined absolute value of their long and short positions, except in the case of offsetting transactions, for which they represent the absolute value of the net volume of their long and short positions. Current Noncurrent Natural Gas (bcf): Basis 8.8 30.5 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table presents the fair values of Questar Gas' derivatives and where they are presented in its Balance Sheets. Questar Gas did not have any derivative balances at December 31, 2015 . Fair Value - Total (millions) At December 31, 2016 ASSETS Current Assets Commodity $ 0.1 $ 0.1 Total current derivative assets (1) 0.1 0.1 Total derivative assets $ 0.1 $ 0.1 LIABILITIES Current Liabilities Commodity $ 0.1 $ 0.1 Total current derivative liabilities (2) 0.1 0.1 Total derivative liabilities $ 0.1 $ 0.1 (1) Current derivative assets are presented in prepaid expenses and other current assets in Questar Gas’ Balance Sheets. (2) Current derivative liabilities are presented in other current liabilities in Questar Gas’ Balance Sheets. |
Derivative Instruments, Gain (Loss) | The following tables present the gains and losses on Questar Gas' derivatives, as well as where the associated activity is presented in its Statements of Income. Derivatives not designated as hedging instruments Amount of Gain (Loss) Recognized in Income on Derivatives (1) Year Ended December 31, 2016 2015 2014 (millions) Derivative Type and Location of Gains (Losses) Commodity (2) Purchased gas $ (0.2 ) $ — $ — Total $ (0.2 ) $ — $ — (1) Includes derivative activity amortized out of regulatory assets/liabilities. Amounts deferred into regulatory assets/liabilities have no associated effect in Questar Gas' Statements of Income. (2) Amounts recorded in Questar Gas' Statements of Income are classified in cost of sales. |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Questar Gas' average composite depreciation rates on utility property, plant and equipment are as follows: Year Ended December 31, 2016 2015 2014 (percent) Distribution 2.42 2.60 2.71 General and other 3.79 3.49 4.29 Major classes of property, plant and equipment and their respective balances for Questar Gas are as follows: At December 31, 2016 2015 (millions) Distribution $ 2,436.7 $ 2,186.9 General and other 369.5 320.9 Plant under construction 76.8 62.5 Total property, plant and equipment $ 2,883.0 $ 2,570.3 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in Questar Gas' carrying amount and segment allocation of goodwill are presented below: Questar Gas Corporate and Other Total (millions) Balance at December 31, 2014 (1) $ 5.6 $ — $ 5.6 No events affecting goodwill — — — Balance at December 31, 2015 (1) $ 5.6 $ — $ 5.6 No events affecting goodwill — — — Balance at December 31, 2016 (1) $ 5.6 $ — $ 5.6 (1) There are no accumulated impairment losses. |
REGULATORY ASSETS AND LIABILI36
REGULATORY ASSETS AND LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Regulated Operations [Abstract] | |
Schedule of Regulatory Assets | Regulatory assets and liabilities include the following: At December 31, 2016 2015 (millions) Regulatory assets: Purchased-gas adjustment (1) $ 3.4 $ 18.9 EEP (2) 1.1 1.1 Contract withholding (3) 2.6 20.3 Deferred cost-of-service gas charges (4) — 19.5 Pipeline integrity costs (5) 1.9 6.3 CET (6) — 3.6 Other 0.6 0.1 Regulatory assets-current 9.6 69.8 Deferred cost-of-service gas charges (4) — 8.1 Cost of reacquired debt (7) 3.2 3.8 Pipeline integrity costs (5) 2.3 — Regulatory assets-non-current 5.5 11.9 Total regulatory assets $ 15.1 $ 81.7 Regulatory liabilities: CET (6) $ 2.9 $ — Cost of plant removal and AROs (8) 3.5 3.7 Other 0.1 0.3 Regulatory liabilities-current (9) 6.5 4.0 Cost of plant removal and AROs (8) 189.1 65.5 Income taxes refundable to customers (10) — 0.1 Regulatory liabilities-non-current $ 189.1 $ 65.6 Total regulatory liabilities $ 195.6 $ 69.6 (1) Purchased-gas costs that are different from those provided for in present rates are accumulated and recovered or credited through future rate changes. (2) The EEP relates to funds expended for promoting the conservation of natural gas through advertising, rebates for efficient homes and appliances and home energy audits. Costs are recovered from customers through periodic rate adjustments. Costs incurred in excess of recoveries result in an asset; recoveries in excess of costs incurred result in a liability. (3) In 2016, Questar Gas recorded a regulatory asset of $2.6 million for a disputed amount withheld from a supplier of storage services. The amount withheld is expected to be recovered from customers if it is determined that Questar Gas is required to pay the supplier. The $20.3 million withheld from a supplier of gathering services as of year-end 2015, per the dispute settlement agreement, was resolved and reversed in March 2016. For further details, see Note 16. (4) Operating and maintenance, depreciation, depletion and amortization, production taxes and royalties on cost-of-service gas production and future expenses related to abandonment of Wexpro-operated gas and oil wells. Noncurrent cost-of-service gas charges also include amounts for production imbalances that will be recovered from customers at the end of the related gas wells' useful lives. These costs were transferred to Wexpro in September 2016. (5) The costs of complying with pipeline-integrity regulations are recovered in rates subject to a Utah Commission order. Questar Gas is allowed to recover $7.0 million per year. Costs incurred in excess of this amount will be recovered in future rate changes. (6) Represents the difference between actual and allowed revenues. Any deficiency in amounts collected are recovered through periodic rate adjustments. (7) Gains and losses on the reacquisition of debt by rate-regulated companies are deferred and amortized as interest expense over the would-be remaining life of the reacquired debt. The reacquired debt costs had a weighted-average life of approximately 6.1 years as of December 31, 2016 . (8) Cost of plant removal and AROs represent amounts recovered from customers for costs of future activities to remove assets that are expected to be incurred at the time of retirement. (9) Current regulatory liabilities are presented in other liabilities in the Balance Sheets. (10) Income taxes refundable to customers arise from adjustments to deferred taxes, refunded over the life of the related property, plant and equipment. |
Schedule of Regulatory Liabilities | Regulatory assets and liabilities include the following: At December 31, 2016 2015 (millions) Regulatory assets: Purchased-gas adjustment (1) $ 3.4 $ 18.9 EEP (2) 1.1 1.1 Contract withholding (3) 2.6 20.3 Deferred cost-of-service gas charges (4) — 19.5 Pipeline integrity costs (5) 1.9 6.3 CET (6) — 3.6 Other 0.6 0.1 Regulatory assets-current 9.6 69.8 Deferred cost-of-service gas charges (4) — 8.1 Cost of reacquired debt (7) 3.2 3.8 Pipeline integrity costs (5) 2.3 — Regulatory assets-non-current 5.5 11.9 Total regulatory assets $ 15.1 $ 81.7 Regulatory liabilities: CET (6) $ 2.9 $ — Cost of plant removal and AROs (8) 3.5 3.7 Other 0.1 0.3 Regulatory liabilities-current (9) 6.5 4.0 Cost of plant removal and AROs (8) 189.1 65.5 Income taxes refundable to customers (10) — 0.1 Regulatory liabilities-non-current $ 189.1 $ 65.6 Total regulatory liabilities $ 195.6 $ 69.6 (1) Purchased-gas costs that are different from those provided for in present rates are accumulated and recovered or credited through future rate changes. (2) The EEP relates to funds expended for promoting the conservation of natural gas through advertising, rebates for efficient homes and appliances and home energy audits. Costs are recovered from customers through periodic rate adjustments. Costs incurred in excess of recoveries result in an asset; recoveries in excess of costs incurred result in a liability. (3) In 2016, Questar Gas recorded a regulatory asset of $2.6 million for a disputed amount withheld from a supplier of storage services. The amount withheld is expected to be recovered from customers if it is determined that Questar Gas is required to pay the supplier. The $20.3 million withheld from a supplier of gathering services as of year-end 2015, per the dispute settlement agreement, was resolved and reversed in March 2016. For further details, see Note 16. (4) Operating and maintenance, depreciation, depletion and amortization, production taxes and royalties on cost-of-service gas production and future expenses related to abandonment of Wexpro-operated gas and oil wells. Noncurrent cost-of-service gas charges also include amounts for production imbalances that will be recovered from customers at the end of the related gas wells' useful lives. These costs were transferred to Wexpro in September 2016. (5) The costs of complying with pipeline-integrity regulations are recovered in rates subject to a Utah Commission order. Questar Gas is allowed to recover $7.0 million per year. Costs incurred in excess of this amount will be recovered in future rate changes. (6) Represents the difference between actual and allowed revenues. Any deficiency in amounts collected are recovered through periodic rate adjustments. (7) Gains and losses on the reacquisition of debt by rate-regulated companies are deferred and amortized as interest expense over the would-be remaining life of the reacquired debt. The reacquired debt costs had a weighted-average life of approximately 6.1 years as of December 31, 2016 . (8) Cost of plant removal and AROs represent amounts recovered from customers for costs of future activities to remove assets that are expected to be incurred at the time of retirement. (9) Current regulatory liabilities are presented in other liabilities in the Balance Sheets. (10) Income taxes refundable to customers arise from adjustments to deferred taxes, refunded over the life of the related property, plant and equipment. |
ASSET RETIREMENT OBLIGATIONS (T
ASSET RETIREMENT OBLIGATIONS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Asset Retirement Obligation [Abstract] | |
Schedule of Changes in AROs | Changes in Questar Gas' AROs from the Balance Sheets were as follows: Amount (millions) AROs at December 31, 2014 $ 0.6 AROs at December 31, 2015 $ 0.6 Accretion 2.9 Revisions in estimated cash flows 75.1 Liabilities settled (0.8 ) AROs at December 31, 2016 $ 77.8 |
SHORT-TERM DEBT AND CREDIT AG38
SHORT-TERM DEBT AND CREDIT AGREEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Short-term Debt, Other Disclosures [Abstract] | |
Schedule of Short-term Debt | Questar Gas' share of commercial paper and letters of credit outstanding under its joint credit facilities with Dominion, Virginia Power and Dominion Gas were as follows: Facility Limit (1) Outstanding Commercial Paper (2) Outstanding Letters of Credit (millions) At December 31, 2016 Joint revolving credit facility(1) $ 500.0 $ 200.0 $ — Joint revolving credit facility(1) 500.0 — — Total $ 1,000.0 $ 200.0 $ — (1) A maximum of a combined $1.0 billion of the facilities is available to Questar Gas, assuming adequate capacity is available after giving effect to uses by co-borrowers Dominion, Virginia Power and Dominion Gas. Sub-limits for Questar Gas are set within the facility limit but can be changed at the option of the borrowers multiple times per year. At December 31, 2016, the sub-limit for Questar Gas was an aggregate $250 million . If Questar Gas has liquidity needs in excess of its sub-limit, the sub-limit may be changed or such needs may be satisfied through short-term intercompany borrowings from Dominion. In May 2016, the maturity date for these facilities is April 2020. These credit facilities can be used to support bank borrowings and the issuance of commercial paper, as well as to support up to $1.0 billion (or the sub-limit, whichever is less) of letters of credit. (2) The weighted-average interest rate of the outstanding commercial paper supported by these credit facilities was 1.10% at December 31, 2016. |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | At December 31, 2016 Weighted- average Coupon (1) 2016 2015 (millions, except percentages) Unsecured Senior and Medium-Term Notes: 2.98% to 7.20%, due 2017 to 2051 4.84 % $ 634.5 $ 534.5 Total principal 634.5 534.5 Securities due within one year 6.85 % (14.5 ) — Debt issuance costs (3.7 ) (3.3 ) Total long-term debt $ 616.3 $ 531.2 (1) Represents weighted-average coupon rates for debt outstanding as of December 31, 2016. |
Schedule of Maturities of Long-term Debt | Based on stated maturity dates , the scheduled principal payments of long-term debt at December 31, 2016, were as follows: 2017 2018 2019 2020 2021 Thereafter Total (millions, except percentages) Questar Gas $ 14.5 $ 120.0 $ — $ — $ — $ 500.0 $ 634.5 Weighted-average coupon 6.85 % 5.72 % 4.57 % |
RELATED-PARTY TRANSACTIONS (Tab
RELATED-PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The amounts of these services follow: Year Ended December 31, 2016 2015 2014 (millions) Transportation and storage services from affiliates (1) $ 72.9 $ 73.0 $ 72.9 Services provided by related parties 65 55.7 51.5 Services provided to related parties 3.2 6.7 6.1 (1) The costs of these services were included in cost of sales in Questar Gas' Statements of Income. |
OPERATING SEGMENT (Tables)
OPERATING SEGMENT (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following table presents segment information pertaining to Questar Gas' operations: Year Ended December 31, Questar Gas Corporate and Other Consolidated Total (millions) 2016 Operating revenue $ 921.3 $ — $ 921.3 Depreciation and amortization 61.0 — 61.0 Interest income 0.3 — 0.3 Interest expense 30.2 — 30.2 Income taxes 43.4 (6.3 ) 37.1 Net income (loss) 66.8 (9.6 ) 57.2 Capital expenditures 240.4 — 240.4 Total assets (billions) 2.5 — 2.5 2015 Operating revenue $ 917.6 $ — $ 917.6 Depreciation and amortization 55.1 — 55.1 Interest income 1.2 — 1.2 Interest expense 28.3 — 28.3 Income taxes 34.8 — 34.8 Net income (loss) 64.3 — 64.3 Capital expenditures 217.4 — 217.4 Total assets (billions) 2.2 — 2.2 2014 Operating revenue $ 960.9 $ — $ 960.9 Depreciation and amortization 53.6 — 53.6 Interest income 1.7 — 1.7 Interest expense 28.2 — 28.2 Income taxes 32.0 — 32.0 Net income (loss) 55.2 — 55.2 Capital expenditures 174.7 — 174.7 |
QUARTERLY FINANCIAL DATA (UNA42
QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | A summary of Questar Gas' quarterly results of operations for the years ended December 31, 2016 and 2015 follows. Amounts reflect all adjustments necessary in the opinion of management for a fair statement of the results for the interim periods. Results for interim periods may fluctuate as a result of weather conditions, changes in rates and other factors. First Quarter Second Quarter Third Quarter Fourth Quarter Year (millions) 2016 Operating revenue $ 407.9 $ 128.2 $ 87.9 $ 297.3 $ 921.3 Income (loss) from operations 83.4 3.8 (19.8 ) 53.3 120.7 Net income (loss) 47.6 (1.6 ) (17.7 ) 28.9 57.2 2015 Operating revenue $ 374.8 $ 141.7 $ 89.3 $ 311.8 $ 917.6 Income (loss) from operations 76.6 1.4 (8.9 ) 53.5 122.6 Net income (loss) 43.8 (2.8 ) (8.8 ) 32.1 64.3 |
SUPPLEMENTAL OIL AND GAS INFO43
SUPPLEMENTAL OIL AND GAS INFORMATION (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Extractive Industries [Abstract] | |
Schedule of Oil and Gas Reserve Quantities | Proved Reserves Natural Gas (Bcf) Balance at December 31, 2016 469.8 Balance at December 31, 2015 522.4 Balance at December 31, 2014 530.4 |
NATURE OF OPERATIONS - Narrativ
NATURE OF OPERATIONS - Narrative (Details) | 12 Months Ended |
Dec. 31, 2016segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating segments | 1 |
SIGNIFICANT ACCOUNTING POLICI45
SIGNIFICANT ACCOUNTING POLICIES - Operating Revenue (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Accounting Policies [Abstract] | ||
Accrued unbilled revenue | $ 88.6 | $ 91 |
SIGNIFICANT ACCOUNTING POLICI46
SIGNIFICANT ACCOUNTING POLICIES - Cost of Sales (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Cost of Sales [Abstract] | ||||
Gas purchases | $ 102 | $ 82.5 | $ 136.5 | |
Affiliated operator service fee | 311.7 | 319 | 349.7 | |
Transportation and storage | [1] | 79.3 | 79.2 | 79.6 |
Gathering | 23.7 | 22.1 | 21 | |
Royalties | 26.3 | 33.3 | 60.1 | |
Storage (injection), net | (5.5) | (3.5) | (1.1) | |
Purchased-gas account adjustment | (0.6) | 20.5 | (45.8) | |
Other | 5.2 | 5 | 4.8 | |
Total cost of sales | $ 542.1 | $ 558.1 | $ 604.8 | |
[1] | See Note 18 for amounts attributable to related parties. |
SIGNIFICANT ACCOUNTING POLICI47
SIGNIFICANT ACCOUNTING POLICIES - Income Taxes (Details) - USD ($) $ in Millions | 1 Months Ended | ||
Apr. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes [Line Items] | |||
Refund of 2015 income tax payments | $ 35 | ||
Affiliated Entity | |||
Income Taxes [Line Items] | |||
Receivables | $ 34.2 | ||
Federal | |||
Income Taxes [Line Items] | |||
Income taxes payable | $ 1.4 | ||
State | |||
Income Taxes [Line Items] | |||
Income taxes payable | $ 1.7 | $ 1.1 |
SIGNIFICANT ACCOUNTING POLICI48
SIGNIFICANT ACCOUNTING POLICIES - Cash and Cash Equivalents (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Accounting Policies [Abstract] | ||
Amount of outstanding checks | $ 7.7 | $ 4 |
SIGNIFICANT ACCOUNTING POLICI49
SIGNIFICANT ACCOUNTING POLICIES - Property, Plant, and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Public Utility, Property, Plant and Equipment [Line Items] | |||
Capitalized AFUDC | $ 0.4 | $ 0.1 | $ 1.4 |
Distribution | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Average composite depreciation rates on utility property, plant and equipment (percentage) | 2.42% | 2.60% | 2.71% |
General and other | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Average composite depreciation rates on utility property, plant and equipment (percentage) | 3.79% | 3.49% | 4.29% |
OPERATING REVENUE (Details)
OPERATING REVENUE (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||
Gas transportation | $ 24.6 | $ 21.2 | $ 17.9 | ||||||||||||
Other | [1] | 24.8 | 25.5 | 37.4 | |||||||||||
Total operating revenue | $ 297.3 | $ 87.9 | $ 128.2 | $ 407.9 | $ 311.8 | $ 89.3 | $ 141.7 | $ 374.8 | 921.3 | [2] | 917.6 | [2] | 960.9 | [2] | |
Residential and commercial | |||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||
Residential, commercial, and industrial sales | 854.6 | 847.3 | 875.7 | ||||||||||||
Industrial | |||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||
Residential, commercial, and industrial sales | $ 17.3 | $ 23.6 | $ 29.9 | ||||||||||||
[1] | See Note 18 for amounts attributable to affiliates | ||||||||||||||
[2] | See Note 18 for amounts attributable to related parties. |
INCOME TAXES - Schedule of Comp
INCOME TAXES - Schedule of Components of Income Tax Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current: | |||
Federal | $ 1.2 | $ (16) | $ (11.9) |
State | 0.2 | (2) | (1.9) |
Total current expense (benefit) | 1.4 | (18) | (13.8) |
Deferred: | |||
Federal | 29.9 | 48.8 | 42.4 |
State | 5.9 | 4.2 | 3.6 |
Investment tax credits | (0.1) | (0.2) | (0.2) |
Total deferred expense | 35.7 | 52.8 | 45.8 |
Total income tax expense | $ 37.1 | $ 34.8 | $ 32 |
INCOME TAXES - Effective Income
INCOME TAXES - Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Federal income taxes statutory rate percentage | 35.00% | 35.00% | 35.00% |
Increases (reductions) resulting from: | |||
State taxes, net of federal benefit percentage | 4.20% | 1.40% | 1.30% |
Amortization of investment tax credits related to rate-regulated assets percentage | (0.10%) | (0.20%) | (0.20%) |
Other percentage | 0.20% | (1.10%) | 0.60% |
Effective income tax rate percentage | 39.30% | 35.10% | 36.70% |
INCOME TAXES - Schedule of Co53
INCOME TAXES - Schedule of Components of Deferred Income Taxes (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Income Tax Disclosure [Abstract] | ||
Total deferred income tax assets | $ 2 | $ 3.4 |
Total deferred income tax liabilities | 477.8 | 440.1 |
Total deferred income taxes: | ||
Property, plant and equipment | 448.2 | 403 |
Employee benefits | 27.9 | 28 |
Deferred compensation | (0.6) | (0.9) |
Purchased gas costs | 0.1 | 8.5 |
Other | 0.2 | (1.9) |
Total deferred income tax liabilities | $ 475.8 | $ 436.7 |
FAIR VALUE MEASUREMENTS - Sched
FAIR VALUE MEASUREMENTS - Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) $ in Millions | Dec. 31, 2016USD ($) |
Assets: | |
Derivatives assets | $ 0.1 |
Liabilities: | |
Derivative liabilities | 0.1 |
Fair Value, Measurements, Recurring | |
Assets: | |
Total assets | 0.1 |
Liabilities: | |
Total liabilities | 0.1 |
Fair Value, Measurements, Recurring | Level 1 | |
Assets: | |
Total assets | 0 |
Liabilities: | |
Total liabilities | 0 |
Fair Value, Measurements, Recurring | Level 2 | |
Assets: | |
Total assets | 0.1 |
Liabilities: | |
Total liabilities | 0.1 |
Fair Value, Measurements, Recurring | Level 3 | |
Assets: | |
Total assets | 0 |
Liabilities: | |
Total liabilities | 0 |
Fair Value, Measurements, Recurring | Commodity | |
Assets: | |
Derivatives assets | 0.1 |
Liabilities: | |
Derivative liabilities | 0.1 |
Fair Value, Measurements, Recurring | Commodity | Level 1 | |
Assets: | |
Derivatives assets | 0 |
Liabilities: | |
Derivative liabilities | 0 |
Fair Value, Measurements, Recurring | Commodity | Level 2 | |
Assets: | |
Derivatives assets | 0.1 |
Liabilities: | |
Derivative liabilities | 0.1 |
Fair Value, Measurements, Recurring | Commodity | Level 3 | |
Assets: | |
Derivatives assets | 0 |
Liabilities: | |
Derivative liabilities | $ 0 |
FAIR VALUE MEASUREMENTS - Net C
FAIR VALUE MEASUREMENTS - Net Change in Assets and Liabilities Measured at Fair Value on a Recurring Basis and Included in the Level 3 Fair Value Category (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Unrealized gains or losses included in earnings in the Level 3 fair value category | $ 0 | $ 0 | $ 0 | |
Commodity | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Beginning balance | 0 | |||
Included in earnings | [1] | 200,000 | ||
Included in regulatory assets/liabilities | 0 | |||
Settlements | (200,000) | |||
Ending balance | $ 0 | $ 0 | ||
[1] | The gains and losses included in earnings were classified in cost of sales. |
FAIR VALUE MEASUREMENTS - Sch56
FAIR VALUE MEASUREMENTS - Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments not Recorded at Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | |||
Carrying Amount | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term debt, including securities due within one year | [1] | $ 630.8 | $ 531.2 | ||
Estimated Fair Value | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term debt, including securities due within one year | [1] | $ 672.6 | [2] | $ 568.4 | [3] |
[1] | Carrying amount includes amounts which represent the unamortized debt issuance costs, discount and/or premium. | ||||
[2] | Fair value is estimated using market prices, where available, and interest rates currently available for issuance of debt with similar terms and remaining maturities. The fair value measurements are classified as Level 2. | ||||
[3] | Fair value is estimated using the discounted present value of cash flows using Questar Gas’ current credit risk-adjusted borrowing rates. The fair value measurements are classified as Level 2. |
DERIVATIVES AND HEDGE ACCOUNT57
DERIVATIVES AND HEDGE ACCOUNTING ACTIVITIES - Schedule of Volume of Derivative Activity (Details) | 12 Months Ended |
Dec. 31, 2016MMcf | |
Fixed Price - Natural Gas - Current Derivative Contract | |
Derivative [Line Items] | |
Volume of derivative activity (bcf) | 8,800 |
Fixed Price - Natural Gas - Non-current Derivative Contract | |
Derivative [Line Items] | |
Volume of derivative activity (bcf) | 30,500 |
DERIVATIVES AND HEDGE ACCOUNT58
DERIVATIVES AND HEDGE ACCOUNTING ACTIVITIES - Schedule of Fair Values of Derivatives and Balance Sheet Location (Details) $ in Millions | Dec. 31, 2016USD ($) | |
Derivatives, Fair Value [Line Items] | ||
Derivatives assets | $ 0.1 | |
Derivative liabilities | 0.1 | |
Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives assets | 0.1 | [1] |
Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 0.1 | [2] |
Fair Value - Derivatives not under Hedge Accounting | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives assets | 0.1 | |
Derivative liabilities | 0.1 | |
Fair Value - Derivatives not under Hedge Accounting | Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives assets | 0.1 | [1] |
Fair Value - Derivatives not under Hedge Accounting | Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 0.1 | [2] |
Commodity | Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives assets | 0.1 | |
Commodity | Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 0.1 | |
Commodity | Fair Value - Derivatives not under Hedge Accounting | Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives assets | 0.1 | |
Commodity | Fair Value - Derivatives not under Hedge Accounting | Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | $ 0.1 | |
[1] | Current derivative assets are presented in prepaid expenses and other current assets in Questar Gas’ Balance Sheets. | |
[2] | Current derivative liabilities are presented in other current liabilities in Questar Gas’ Balance Sheets. |
DERIVATIVES AND HEDGE ACCOUNT59
DERIVATIVES AND HEDGE ACCOUNTING ACTIVITIES - Schedule of Gains and Losses on Derivatives (Details) - Derivatives not designated as hedging instruments - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income on Derivatives | [1] | $ (0.2) | $ 0 | $ 0 |
Commodity | Purchased gas | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Income on Derivatives | [1],[2] | $ (0.2) | $ 0 | $ 0 |
[1] | Includes derivative activity amortized out of regulatory assets/liabilities. Amounts deferred into regulatory assets/liabilities have no associated effect in Questar Gas' Statements of Income. | |||
[2] | Amounts recorded in Questar Gas' Statements of Income are classified in cost of sales. |
PROPERTY, PLANT AND EQUIPMENT60
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Abstract] | ||
Distribution | $ 2,436.7 | $ 2,186.9 |
General and other | 369.5 | 320.9 |
Plant under construction | 76.8 | 62.5 |
Total property, plant and equipment | $ 2,883 | $ 2,570.3 |
GOODWILL (Details)
GOODWILL (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Goodwill [Roll Forward] | |||
Beginning balance | [1] | $ 5.6 | $ 5.6 |
No events affecting goodwill | 0 | 0 | |
Ending balance | [1] | 5.6 | 5.6 |
Operating Segments | Questar Gas | |||
Goodwill [Roll Forward] | |||
Beginning balance | [1] | 5.6 | 5.6 |
No events affecting goodwill | 0 | 0 | |
Ending balance | [1] | 5.6 | 5.6 |
Operating Segments | Corporate and Other | |||
Goodwill [Roll Forward] | |||
Beginning balance | [1] | 0 | 0 |
No events affecting goodwill | 0 | 0 | |
Ending balance | [1] | $ 0 | $ 0 |
[1] | There are no accumulated impairment losses. |
REGULATORY ASSETS AND LIABILI62
REGULATORY ASSETS AND LIABILITIES - Regulatory Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Regulatory Assets [Line Items] | |||
Regulatory assets, current | $ 9.6 | $ 69.8 | |
Regulatory assets, noncurrent | 5.5 | 11.9 | |
Total regulatory assets | 15.1 | 81.7 | |
Regulatory assets that were not earning a return | 2.6 | 20.3 | |
Purchased-gas adjustment | |||
Regulatory Assets [Line Items] | |||
Regulatory assets, current | [1] | 3.4 | 18.9 |
EEP | |||
Regulatory Assets [Line Items] | |||
Regulatory assets, current | [2] | 1.1 | 1.1 |
Contract withholding | |||
Regulatory Assets [Line Items] | |||
Regulatory assets, current | [3] | 2.6 | 20.3 |
Deferred cost-of-service gas charges | |||
Regulatory Assets [Line Items] | |||
Regulatory assets, current | [4] | 0 | 19.5 |
Regulatory assets, noncurrent | [4] | 0 | 8.1 |
Pipeline integrity costs | |||
Regulatory Assets [Line Items] | |||
Regulatory assets, current | [5] | 1.9 | 6.3 |
Regulatory assets, noncurrent | [5] | 2.3 | 0 |
Pipeline integrity costs | Maximum | |||
Regulatory Assets [Line Items] | |||
Allowed recovery amount per year | 7 | ||
CET | |||
Regulatory Assets [Line Items] | |||
Regulatory assets, current | [6] | 0 | 3.6 |
Other | |||
Regulatory Assets [Line Items] | |||
Regulatory assets, current | 0.6 | 0.1 | |
Cost of reacquired debt | |||
Regulatory Assets [Line Items] | |||
Regulatory assets, noncurrent | [7] | $ 3.2 | $ 3.8 |
Cost of reacquired debt | Weighted Average | |||
Regulatory Assets [Line Items] | |||
Recovery period | 6 years 1 month | ||
[1] | Purchased-gas costs that are different from those provided for in present rates are accumulated and recovered or credited through future rate changes. | ||
[2] | The EEP relates to funds expended for promoting the conservation of natural gas through advertising, rebates for efficient homes and appliances and home energy audits. Costs are recovered from customers through periodic rate adjustments. Costs incurred in excess of recoveries result in an asset; recoveries in excess of costs incurred result in a liability. | ||
[3] | In 2016, Questar Gas recorded a regulatory asset of $2.6 million for a disputed amount withheld from a supplier of storage services. The amount withheld is expected to be recovered from customers if it is determined that Questar Gas is required to pay the supplier. The $20.3 million withheld from a supplier of gathering services as of year-end 2015, per the dispute settlement agreement, was resolved and reversed in March 2016. For further details, see Note 16. | ||
[4] | Operating and maintenance, depreciation, depletion and amortization, production taxes and royalties on cost-of-service gas production and future expenses related to abandonment of Wexpro-operated gas and oil wells. Noncurrent cost-of-service gas charges also include amounts for production imbalances that will be recovered from customers at the end of the related gas wells' useful lives. These costs were transferred to Wexpro in September 2016. | ||
[5] | The costs of complying with pipeline-integrity regulations are recovered in rates subject to a Utah Commission order. Questar Gas is allowed to recover $7.0 million per year. Costs incurred in excess of this amount will be recovered in future rate changes. | ||
[6] | Represents the difference between actual and allowed revenues. Any deficiency in amounts collected are recovered through periodic rate adjustments. | ||
[7] | Gains and losses on the reacquisition of debt by rate-regulated companies are deferred and amortized as interest expense over the would-be remaining life of the reacquired debt. The reacquired debt costs had a weighted-average life of approximately 6.1 years as of December 31, 2016. |
REGULATORY ASSETS AND LIABILI63
REGULATORY ASSETS AND LIABILITIES - Regulatory Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | |
Regulatory Liabilities [Line Items] | |||
Regulatory liabilities, current | [1] | $ 6.5 | $ 4 |
Regulatory liabilities, noncurrent | 189.1 | 65.6 | |
Total regulatory liabilities | 195.6 | 69.6 | |
CET | |||
Regulatory Liabilities [Line Items] | |||
Regulatory liabilities, current | [2] | 2.9 | 0 |
Cost of plant removal and ARO's | |||
Regulatory Liabilities [Line Items] | |||
Regulatory liabilities, current | [3] | 3.5 | 3.7 |
Regulatory liabilities, noncurrent | [3] | 189.1 | 65.5 |
Other | |||
Regulatory Liabilities [Line Items] | |||
Regulatory liabilities, current | 0.1 | 0.3 | |
Income taxes refundable to customers | |||
Regulatory Liabilities [Line Items] | |||
Regulatory liabilities, noncurrent | [4] | $ 0 | $ 0.1 |
[1] | Current regulatory liabilities are presented in other liabilities in the Balance Sheets. | ||
[2] | Represents the difference between actual and allowed revenues. Any deficiency in amounts collected are recovered through periodic rate adjustments. | ||
[3] | Cost of plant removal and AROs represent amounts recovered from customers for costs of future activities to remove assets that are expected to be incurred at the time of retirement. | ||
[4] | Income taxes refundable to customers arise from adjustments to deferred taxes, refunded over the life of the related property, plant and equipment. |
REGULATORY MATTERS (Details)
REGULATORY MATTERS (Details) $ in Millions | 1 Months Ended | 12 Months Ended | |
Oct. 31, 2016USD ($) | Dec. 31, 2016USD ($)regulatory_commission | Nov. 30, 2014USD ($) | |
Public Utilities, General Disclosures [Line Items] | |||
Number of regulatory commissions | regulatory_commission | 2 | ||
Public Service Commission of Utah and Wyoming Public Service Commission | Filing for Gas Cost Increase, Effective November 1, 2016 | |||
Public Utilities, General Disclosures [Line Items] | |||
Amount spent under program | $ 8.7 | ||
Utah Commission | Infrastructure Cost Tracking Mechanism | |||
Public Utilities, General Disclosures [Line Items] | |||
Allowed recovery amount per year | $ 70 | ||
Utah Commission | Infrastructure Cost Tracking Mechanism | Minimum | |||
Public Utilities, General Disclosures [Line Items] | |||
Amount invested in new pipelines | $ 84 |
ASSET RETIREMENT OBLIGATIONS (
ASSET RETIREMENT OBLIGATIONS (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2014 | |
Asset Retirement Obligation [Abstract] | ||||
Current portion of the ARO balance | $ 1.6 | |||
AROs | $ 0.6 | $ 77.8 | $ 0.6 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||||
Beginning balance | 0.6 | |||
Accretion | 2.9 | |||
Revisions in estimated cash flows | $ 75.1 | 75.1 | ||
Liabilities settled | (0.8) | |||
Ending balance | $ 77.8 |
SHORT-TERM DEBT AND CREDIT AG66
SHORT-TERM DEBT AND CREDIT AGREEMENTS (Details) | Dec. 31, 2016USD ($)facility | |
Line of Credit Facility [Line Items] | ||
Facility Limit | $ 1,000,000,000 | [1] |
Outstanding Commercial Paper | 200,000,000 | [2] |
Outstanding Letters of Credit | $ 0 | |
Weighted average interest rate percentage | 6.85% | [3] |
Joint Revolving Credit Facility $5 Billion and Joint Revolving Credit Facility $500 Million | ||
Line of Credit Facility [Line Items] | ||
Number of joint revolving credit facilities | facility | 2 | |
Facility Limit | $ 1,000,000,000 | |
Joint Revolving Credit Facility $5 Billion and Joint Revolving Credit Facility $500 Million | Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Amount of sub-limit | 250,000,000 | |
Joint Revolving Credit Facility $5 Billion and Joint Revolving Credit Facility $500 Million | Letter of Credit | ||
Line of Credit Facility [Line Items] | ||
Facility Limit | $ 1,000,000,000 | |
Joint Revolving Credit Facility $5 Billion and Joint Revolving Credit Facility $500 Million | Commercial Paper | ||
Line of Credit Facility [Line Items] | ||
Weighted average interest rate percentage | 1.10% | |
Credit Facility $5 Billion | ||
Line of Credit Facility [Line Items] | ||
Facility Limit | $ 500,000,000 | [1] |
Outstanding Commercial Paper | 200,000,000 | [1],[2] |
Outstanding Letters of Credit | 0 | [1] |
Credit Facility $500 Million | ||
Line of Credit Facility [Line Items] | ||
Facility Limit | 500,000,000 | [1] |
Outstanding Commercial Paper | 0 | [1],[2] |
Outstanding Letters of Credit | $ 0 | [1] |
[1] | A maximum of a combined $1.0 billion of the facilities is available to Questar Gas, assuming adequate capacity is available after giving effect to uses by co-borrowers Dominion, Virginia Power and Dominion Gas. Sub-limits for Questar Gas are set within the facility limit but can be changed at the option of the borrowers multiple times per year. At December 31, 2016, the sub-limit for Questar Gas was an aggregate $250 million. If Questar Gas has liquidity needs in excess of its sub-limit, the sub-limit may be changed or such needs may be satisfied through short-term intercompany borrowings from Dominion. In May 2016, the maturity date for these facilities is April 2020. These credit facilities can be used to support bank borrowings and the issuance of commercial paper, as well as to support up to $1.0 billion (or the sub-limit, whichever is less) of letters of credit. | |
[2] | The weighted-average interest rate of the outstanding commercial paper supported by these credit facilities was 1.10% at December 31, 2016. | |
[3] | Represents weighted-average coupon rates for debt outstanding as of December 31, 2016. |
LONG-TERM DEBT - Schedule of Lo
LONG-TERM DEBT - Schedule of Long Term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||
2016 Weighted- average Coupon percentage | [1] | 6.85% | |
Total principal | $ 634.5 | $ 534.5 | |
Securities due within one year | (14.5) | 0 | |
Debt issuance costs | (3.7) | (3.3) | |
Total long-term debt | $ 616.3 | 531.2 | |
Unsecured senior notes | 2.98% to 7.20%, due 2017 to 2051 | |||
Debt Instrument [Line Items] | |||
2016 Weighted- average Coupon percentage | [1] | 4.84% | |
Total principal | $ 634.5 | $ 534.5 | |
Unsecured senior notes | 2.98% to 7.20%, due 2017 to 2051 | Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate percentage | 2.98% | ||
Unsecured senior notes | 2.98% to 7.20%, due 2017 to 2051 | Maximum | |||
Debt Instrument [Line Items] | |||
Interest rate percentage | 7.20% | ||
[1] | Represents weighted-average coupon rates for debt outstanding as of December 31, 2016. |
LONG-TERM DEBT - Schedule of St
LONG-TERM DEBT - Schedule of Stated Maturity Dates of Long Term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
2,017 | $ 14.5 | |
2,018 | 120 | |
2,019 | 0 | |
2,020 | 0 | |
2,021 | 0 | |
Thereafter | 500 | |
Total principal | $ 634.5 | $ 534.5 |
Weighted-average coupon (percentage), 2017 | 6.85% | |
Weighted-average coupon (percentage), 2018 | 5.72% | |
Weighted-average coupon (percentage), Thereafter | 4.57% |
EMPLOYEE BENEFITS (Details)
EMPLOYEE BENEFITS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total share-based compensation expense | $ 3 | $ 1.4 | $ 1.6 |
Dominion Questar Corporation | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Expense recognized for defined contribution plan | 4.7 | 4.5 | 4.5 |
Dominion Questar Corporation | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Amount of contributions | 11.3 | ||
Net periodic pension cost | 6.4 | 10.4 | 8.5 |
Amounts due from Dominion Questar | 87.8 | 82.8 | |
Dominion Questar Corporation | Other Postretirement Benefit Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net periodic pension cost | 0.8 | 0.9 | $ 0.8 |
Amounts due to Dominion Questar | $ 13 | $ 15.3 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($)site | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Purchase Obligation, Fiscal Year Maturity [Abstract] | |||
Gas purchases | $ 102 | $ 82.5 | $ 136.5 |
Transportation and Underground Storage Services with Affiliated Entity | Questar Pipeline | Questar Pipeline, LLC | |||
Contractual Obligation, Fiscal Year Maturity [Abstract] | |||
2,017 | 44 | ||
2,018 | 13 | ||
2,019 | 3.8 | ||
2,020 | 1.9 | ||
2,021 | 1.6 | ||
Commitments to Purchase Gas | |||
Purchase Obligation, Fiscal Year Maturity [Abstract] | |||
2,017 | 29.3 | ||
2,018 | 25.2 | ||
2,019 | 25.2 | ||
2,020 | 25.4 | ||
2,021 | 25.2 | ||
Gas purchases | 102 | $ 82.4 | $ 135.8 |
Transportation and Gathering Commitments | |||
Other Commitment, Fiscal Year Maturity [Abstract] | |||
2,017 | 27.8 | ||
2,018 | 24.4 | ||
2,019 | 22.7 | ||
2,020 | 22.7 | ||
2,021 | $ 19.6 | ||
Unfavorable Regulatory Action | Coal Tar and Other Potentially Harmful Materials | EPA | |||
Other Commitments [Line Items] | |||
Number of former manufactured gas plant sites | site | 2 |
RELATED-PARTY TRANSACTIONS (Det
RELATED-PARTY TRANSACTIONS (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Related Party Transaction [Line Items] | ||||
Services provided by related parties | $ 65 | $ 55.7 | $ 51.5 | |
Services provided to related parties | 3.2 | 6.7 | 6.1 | |
Revolving Credit Facility | IRCA | ||||
Related Party Transaction [Line Items] | ||||
Interest charges | 1.3 | |||
Transportation and storage services from affiliates | ||||
Related Party Transaction [Line Items] | ||||
Transportation and storage services from affiliates | [1] | 72.9 | 73 | $ 72.9 |
Dominion Questar Corporation | Revolving Credit Facility | IRCA | ||||
Related Party Transaction [Line Items] | ||||
Borrowings under the IRCA | $ 273.3 | |||
Dominion | Revolving Credit Facility | IRCA | ||||
Related Party Transaction [Line Items] | ||||
Borrowings under the IRCA | $ 48 | |||
Weighted-average interest rate percentage | 1.04% | |||
Dominion Questar Corporation | Dominion Questar Corporation | Merger and Restructuring Costs from Dominion Questar Combination | ||||
Related Party Transaction [Line Items] | ||||
Merger and restructuring costs | $ 13.8 | |||
[1] | The costs of these services were included in cost of sales in Questar Gas' Statements of Income. |
OPERATING SEGMENT - Narrative (
OPERATING SEGMENT - Narrative (Details) - Transaction Costs Associated with the Dominion Questar Combination - Affiliated Entity - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2016 | ||
Segment Reporting Information [Line Items] | |||
Transaction costs, net of tax | $ 7.7 | ||
Operating Segments | Corporate and Other | |||
Segment Reporting Information [Line Items] | |||
Transaction costs | [1] | $ 15.9 | |
Transaction costs, net of tax | $ 9.6 | ||
[1] | See Note 18 for amounts attributable to related parties. |
OPERATING SEGMENT - Schedule of
OPERATING SEGMENT - Schedule of Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||||
Segment Reporting Information [Line Items] | |||||||||||||||
Operating revenue | $ 297.3 | $ 87.9 | $ 128.2 | $ 407.9 | $ 311.8 | $ 89.3 | $ 141.7 | $ 374.8 | $ 921.3 | [1] | $ 917.6 | [1] | $ 960.9 | [1] | |
Depreciation and amortization | 61 | 55.1 | 53.6 | ||||||||||||
Interest income | 0.3 | 1.2 | 1.7 | ||||||||||||
Interest expense | [1] | 30.2 | 28.3 | 28.2 | |||||||||||
Income taxes | 37.1 | 34.8 | 32 | ||||||||||||
Net income (loss) | 28.9 | $ (17.7) | $ (1.6) | $ 47.6 | 32.1 | $ (8.8) | $ (2.8) | $ 43.8 | 57.2 | 64.3 | 55.2 | ||||
Capital expenditures | 240.4 | 217.4 | 174.7 | ||||||||||||
Total assets (billions) | 2,517 | 2,192.7 | 2,517 | 2,192.7 | |||||||||||
Operating Segments | Questar Gas | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Operating revenue | 921.3 | 917.6 | 960.9 | ||||||||||||
Depreciation and amortization | 61 | 55.1 | 53.6 | ||||||||||||
Interest income | 0.3 | 1.2 | 1.7 | ||||||||||||
Interest expense | 30.2 | 28.3 | 28.2 | ||||||||||||
Income taxes | 43.4 | 34.8 | 32 | ||||||||||||
Net income (loss) | 66.8 | 64.3 | 55.2 | ||||||||||||
Capital expenditures | 240.4 | 217.4 | 174.7 | ||||||||||||
Total assets (billions) | 2,500 | 2,200 | 2,500 | 2,200 | |||||||||||
Operating Segments | Corporate and Other | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Operating revenue | 0 | 0 | 0 | ||||||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||||||
Interest income | 0 | 0 | 0 | ||||||||||||
Interest expense | 0 | 0 | 0 | ||||||||||||
Income taxes | (6.3) | 0 | 0 | ||||||||||||
Net income (loss) | (9.6) | 0 | 0 | ||||||||||||
Capital expenditures | 0 | 0 | $ 0 | ||||||||||||
Total assets (billions) | $ 0 | $ 0 | $ 0 | $ 0 | |||||||||||
[1] | See Note 18 for amounts attributable to related parties. |
QUARTERLY FINANCIAL DATA (UNA74
QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||
Effect of Fourth Quarter Events [Line Items] | ||||||||||||||
Operating revenue | $ 297.3 | $ 87.9 | $ 128.2 | $ 407.9 | $ 311.8 | $ 89.3 | $ 141.7 | $ 374.8 | $ 921.3 | [1] | $ 917.6 | [1] | $ 960.9 | [1] |
Income (loss) from operations | 53.3 | (19.8) | 3.8 | 83.4 | 53.5 | (8.9) | 1.4 | 76.6 | 120.7 | 122.6 | 109.5 | |||
Net income (loss) | $ 28.9 | (17.7) | $ (1.6) | $ 47.6 | $ 32.1 | $ (8.8) | $ (2.8) | $ 43.8 | $ 57.2 | $ 64.3 | $ 55.2 | |||
Transaction Costs Associated with the Dominion Questar Combination | Affiliated Entity | ||||||||||||||
Effect of Fourth Quarter Events [Line Items] | ||||||||||||||
Transaction costs, net of tax | $ 7.7 | |||||||||||||
[1] | See Note 18 for amounts attributable to related parties. |
SUPPLEMENTAL OIL AND GAS INFO75
SUPPLEMENTAL OIL AND GAS INFORMATION (UNAUDITED) (Details) - MMcf | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Natural Gas | |||
Reserve Quantities [Line Items] | |||
Proved Reserves (Bcf) | 469,800 | 522,400 | 530,400 |