Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 14, 2017 | |
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-Q | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 9,189,626 |
Statements of Income
Statements of Income - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Income Statement [Abstract] | |||
Operating revenue | [1] | $ 396.9 | $ 407.9 |
Operating Expenses | |||
Cost of sales | [1] | 241.3 | 256.9 |
Other operations and maintenance | [1] | 41.7 | 47.6 |
Depreciation and amortization | 16.2 | 14.7 | |
Other taxes | 5.8 | 5.3 | |
Total Operating Expenses | 305 | 324.5 | |
Income from operations | 91.9 | 83.4 | |
Other income | 1 | 1 | |
Interest expense | [1] | 8.5 | 7.7 |
Income from operations before income tax expense | 84.4 | 76.7 | |
Income tax expense | 32.2 | 29.1 | |
Net Income | $ 52.2 | $ 47.6 | |
[1] | See Note 11 for amounts attributable to related parties. |
Balance Sheets
Balance Sheets - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | [1] | |
Current Assets | ||||
Cash and cash equivalents | $ 10 | $ 7.6 | ||
Customer receivables (less allowance for doubtful accounts of $2.6 and $1.7) | 136.7 | 163.7 | ||
Receivable from affiliates | 1.4 | 0.6 | ||
Inventories at lower of average cost or market: | ||||
Gas stored underground | 8.9 | 49.3 | ||
Materials and supplies | 25.4 | 27.6 | ||
Regulatory assets | 1.9 | 9.6 | ||
Other | 3 | 3.7 | ||
Total current assets | 187.3 | 262.1 | ||
Property, Plant and Equipment | ||||
Property, plant and equipment | 2,879.6 | 2,883 | ||
Accumulated depreciation and amortization | (721.4) | (737.6) | ||
Total property, plant and equipment, net | 2,158.2 | 2,145.4 | ||
Receivable from affiliates | 100.3 | 87.8 | ||
Other noncurrent assets | 11.2 | 11.2 | ||
Total deferred charges and other assets | 111.5 | 99 | ||
Total assets | 2,457 | 2,506.5 | ||
Current Liabilities | ||||
Securities due within one year | 84.5 | 14.5 | ||
Short-term debt | 147 | 200 | ||
Affiliated current borrowings | 0 | 48 | ||
Accounts payable and accrued expenses | 70.3 | 117.2 | ||
Accounts payable to affiliates | 68.9 | 43.5 | ||
Customer advances | 9.8 | 27.9 | ||
Regulatory liabilities | 28.7 | 6.5 | ||
Other current liabilities | 1.7 | 1.7 | ||
Total current liabilities | 410.9 | 459.3 | ||
Long-Term Debt | 546.4 | 616.3 | ||
Deferred Credits and Other Liabilities | ||||
Deferred income taxes | 491.4 | 475.8 | ||
Regulatory liabilities | 190.8 | 189.1 | ||
Payables to affiliates | 13.1 | 13 | ||
Other noncurrent liabilities | 94.6 | 95.4 | ||
Total deferred credits and other liabilities | 789.9 | 773.3 | ||
Total liabilities | 1,747.2 | 1,848.9 | ||
Commitments and Contingencies (see Note 9) | ||||
Equity | ||||
Common stock - par value $2.50 | [2] | 23 | 23 | |
Additional paid-in capital | 272.5 | 272.5 | ||
Retained earnings | 414.3 | 362.1 | ||
Total common shareholder's equity | 709.8 | 657.6 | ||
Total liabilities and shareholder's equity | $ 2,457 | $ 2,506.5 | ||
[1] | Questar Gas' Balance Sheet at December 31, 2016 has been derived from the audited Balance Sheet at that date. | |||
[2] | 50.0 million shares authorized; 9.2 million shares outstanding at March 31, 2017 and December 31, 2016. |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Customer receivables, allowance for doubtful accounts | $ 2.6 | $ 1.7 |
Common stock , par value (in dollars per share) | $ 2.5 | $ 2.5 |
Common stock, authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, outstanding (in shares) | 9,200,000 | 9,200,000 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Operating Activities | |||
Net income | $ 52.2 | $ 47.6 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 16.2 | 16.1 | |
Deferred income taxes | 15.7 | 1.7 | |
Other adjustments for non-cash items | 0.2 | 0.4 | |
Changes in operating assets and liabilities | 53.8 | 125.5 | |
Net cash provided by operating activities | 138.1 | 191.3 | |
Investing Activities | |||
Property, plant and equipment purchased | (35) | (59.1) | |
Cash used in disposition of assets | 0 | (0.7) | |
Proceeds from disposition of assets | 0.3 | 0.1 | |
Net cash used in investing activities | (34.7) | (59.7) | |
Financing Activities | |||
Repayment of short-term debt, net | (53) | 0 | |
Repayment of affiliated current borrowings, net | (48) | (132.8) | |
Other | 0 | 0.7 | |
Net cash used in financing activities | (101) | (142.1) | |
Increase (decrease) in cash and cash equivalents | 2.4 | (10.5) | |
Cash and cash equivalents at beginning of year | 7.6 | [1] | 10.5 |
Cash and cash equivalents at end of year | 10 | 0 | |
Significant noncash investing activities: | |||
Accrued capital expenditures | 11.5 | 14.7 | |
Dominion Questar | |||
Financing Activities | |||
Dividends paid to Dominion Questar | $ 0 | $ (10) | |
[1] | Questar Gas' Balance Sheet at December 31, 2016 has been derived from the audited Balance Sheet at that date. |
Nature of Operations
Nature of Operations | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations 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 in Idaho. Wexpro, an affiliate, provides the majority of Questar Gas' natural gas supply and Questar Pipeline, an affiliate, provides the majority of Questar Gas' transportation and storage services. |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies As permitted by the rules and regulations of the SEC, Questar Gas' accompanying unaudited Financial Statements contain certain condensed financial information and exclude certain footnote disclosures normally included in annual audited financial statements prepared in accordance with GAAP. These unaudited Financial Statements should be read in conjunction with the Financial Statements and Notes in Questar Gas' Annual Report on Form 10-K for the year ended December 31, 2016. In the opinion of management, the accompanying unaudited Financial Statements contain all adjustments necessary to present fairly its financial position as of March 31, 2017 , its results of operations for the three months ended March 31, 2017 and 2016 and its cash flows for the three months ended March 31, 2017 and 2016 . Such adjustments are normal and recurring in nature unless otherwise noted. 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. The results of operations for interim periods are not necessarily indicative of the results expected for the full year. Information for quarterly periods is affected by seasonal variations in sales, rate changes, purchased gas expenses and other factors. Questar Gas reports certain contracts and instruments at fair value. See Note 4 for further information on fair value measurements. Certain amounts in the 2016 Financial Statements and Notes have been reclassified to conform to the 2017 presentation for comparative purposes. The reclassifications did not affect Questar Gas' net income, total assets, liabilities, equity or cash flows. |
Operating Revenue
Operating Revenue | 3 Months Ended |
Mar. 31, 2017 | |
Regulated and Unregulated Operating Revenue [Abstract] | |
Operating Revenue | Operating Revenue Questar Gas' operating revenue consists of the following: Three Months Ended March 31, 2017 2016 (millions) Residential and commercial gas sales $ 378.5 $ 391.7 Industrial gas sales 3.2 5.0 Gas transportation 6.9 6.0 Other (1) 8.3 5.2 Total operating revenue $ 396.9 $ 407.9 (1) See Note 11 for amounts attributable to related parties. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Questar Gas' fair value measurements are made in accordance with the policies discussed in Note 5 to the Financial Statements in Questar Gas' Annual Report on Form 10-K for the year ended December 31, 2016. See Note 5 in this report for further information about Questar Gas' derivatives and hedge accounting activities. 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 following table presents Questar Gas' quantitative information about Level 3 fair value measurements at March 31, 2017. The range and weighted average are presented in dollars for market price inputs. Fair Value (millions) Valuation Techniques Unobservable Input Range Weighted Average (1) Liabilities Physical and financial forwards and futures: Natural gas (2) $ 1.3 Discounted cash flow Market price (per Dth) (3) 2.2 - 3.6 2.8 Total liabilities $ 1.3 (1) Averages weighted by volume. (2) Includes basis. (3) Represents market prices beyond defined terms for Levels 1 and 2. Sensitivity of the fair value measurements to changes in the significant unobservable inputs is as follows: Significant Unobservable Inputs Position Change to Input Impact on Fair Value Measurement Market price Buy Increase (decrease) Gain (loss) Market price Sell Increase (decrease) Loss (gain) Recurring Fair Value Measurements The following table presents Questar Gas’ liabilities that are measured at fair value on a recurring basis for each hierarchy level, including both current and noncurrent portions. Derivative assets at March 31, 2017 were immaterial. Level 1 Level 2 Level 3 Total (millions) At March 31, 2017 Liabilities: Derivatives: Commodity $ — $ — $ 1.3 $ 1.3 Total liabilities $ — $ — $ 1.3 $ 1.3 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. Three Months Ended March 31, 2017 2016 (millions) Beginning balance $ — $ — Total realized and unrealized gains (losses): Included in earnings (1) (0.1 ) — Included in regulatory assets/liabilities (1.3 ) — Settlements 0.1 — Ending balance $ (1.3 ) $ — (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 three months ended March 31, 2017 . 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, 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: March 31, 2017 December 31, 2016 Carrying Amount Estimated Fair Value (1) Carrying Amount Estimated Fair Value (1) (millions) Long-term debt, including securities due within one year (2) $ 630.9 $ 675.0 $ 630.8 $ 672.6 (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) Carrying amount includes amounts which represent the unamortized debt issuance costs, discount or premium. |
Derivatives and Hedge Accountin
Derivatives and Hedge Accounting Activities | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedge Accounting Activities | Derivatives and Hedge Accounting Activities Questar Gas' accounting policies, objectives and strategies for using derivative instruments are discussed in Note 2 to the Financial Statements in the Questar Gas' Annual Report on Form 10-K for the year ended December 31, 2016. See Note 4 in this report 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 March 31, 2017 , 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 March 31, 2017 . These volumes are based on open derivative positions and represent the combined absolute value of its long and short positions, except in the case of offsetting transactions, for which they represent the absolute value of the net volume of its long and short positions. Current Noncurrent Natural Gas (bcf): Basis 7.7 26.4 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. Fair Value - Total (millions) At March 31, 2017 LIABILITIES Current Liabilities Commodity $ 0.1 $ 0.1 Total current derivative liabilities (2) 0.1 0.1 Noncurrent Liabilities Commodity 1.2 1.2 Total noncurrent derivative liabilities (3) 1.2 1.2 Total derivative liabilities $ 1.3 $ 1.3 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 other current assets in Questar Gas' Balance Sheets. (2) Current derivative liabilities are presented in other current liabilities in Questar Gas’ Balance Sheets. (3) Noncurrent derivative liabilities are presented in other noncurrent liabilities in Questar Gas' Balance Sheets. The following table presents the gains and losses on Questar Gas' derivatives, as well as where the associated activity is presented in its Statements of Income. Amount of Gain (Loss) Recognized in Income on Derivatives (1) Three months ended March 31, Derivatives not designated as hedging instruments 2017 2016 (millions) Derivative Type and Location of Gains (Losses) Commodity (2) $ (0.5 ) $ — Total $ (0.5 ) $ — (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. |
Regulatory Assets and Liabiliti
Regulatory Assets and Liabilities | 3 Months Ended |
Mar. 31, 2017 | |
Regulated Operations [Abstract] | |
Regulatory Assets and Liabilities | Regulatory Assets and Liabilities Regulatory assets and liabilities include the following: March 31, 2017 December 31, 2016 (millions) Regulatory assets: Purchased-gas adjustment (1) $ — $ 3.4 EEP (2) — 1.1 Contract withholding (3) — 2.6 Pipeline integrity costs (4) 1.9 1.9 Other — 0.6 Regulatory assets-current 1.9 9.6 Derivatives (5) 1.2 — Pipeline integrity costs (4) 1.4 2.3 Cost of reacquired debt (6) 3.1 3.2 Regulatory assets-noncurrent (7) 5.7 5.5 Total regulatory assets $ 7.6 $ 15.1 Regulatory liabilities: Purchased-gas adjustment (1) $ 20.1 $ — EEP (2) 2.0 — CET (8) 2.0 2.9 Cost of plant removal and AROs (9) 4.5 3.5 Other 0.1 0.1 Regulatory liabilities-current 28.7 6.5 Cost of plant removal and AROs (9) 190.8 189.1 Regulatory liabilities-noncurrent 190.8 189.1 Total regulatory liabilities $ 219.5 $ 195.6 (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) Represents a disputed amount withheld from a supplier of storage services. The dispute was settled in March 2017 and the amount reversed, which resulted in no material impact to Questar Gas' results of operations, financial position or cash flows. (4) 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. (5) Changes in the fair value of derivative instruments result in the recognition of regulatory assets or regulatory liabilities as they are expected to be recovered from or refunded to customers. (6) 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 5.8 years as of March 31, 2017 . (7) Noncurrent regulatory assets are presented in other noncurrent assets in the Balance Sheets. (8) Represents the difference between actual and allowed revenues. Any deficiency in amounts collected are recovered through periodic rate adjustments. (9) 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. |
Regulatory Matters
Regulatory Matters | 3 Months Ended |
Mar. 31, 2017 | |
Regulated Operations [Abstract] | |
Regulatory Matters | Regulatory Matters 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. There have been no significant developments regarding the pending regulatory matters disclosed in Note 10 to the Financial Statements in Questar Gas' Annual Report on Form 10-K for the year ended December 31, 2016. |
Significant Financing Transacti
Significant Financing Transactions | 3 Months Ended |
Mar. 31, 2017 | |
Short-term Debt, Other Disclosures [Abstract] | |
Significant Financing Transactions | Significant Financing Transactions 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. 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. At March 31, 2017, Questar Gas' commercial paper and letters of credit outstanding under its joint credit facilities with Dominion, Virginia Power and Dominion Gas, were as follows: Facility (1) Outstanding Outstanding (millions) Joint revolving credit facility (1) $ 500.0 $ 147.0 $ — Joint revolving credit facility (1) 500.0 — — Total $ 1,000.0 $ 147.0 $ — (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 March 31, 2017, 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. 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. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 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. 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. |
Credit Risk
Credit Risk | 3 Months Ended |
Mar. 31, 2017 | |
Risks and Uncertainties [Abstract] | |
Credit Risk | Credit Risk Questar Gas' accounting policies for credit risk are discussed in Note 17 to the Financial Statements in Questar Gas' Annual Report on Form 10-K for the year ended December 31, 2016. 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 March 31, 2017 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 | 3 Months Ended |
Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | Related-Party Transactions 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. 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. 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: Three Months Ended March 31, 2017 2016 (millions) Affiliated operator service fee (1) $ 75.9 $ 79.8 Transportation and storage services from affiliates (1) 19.6 19.2 Services provided by related parties 10.8 13.5 Services provided to related parties 1.5 0.5 (1) The costs of these services were included in cost of sales in Questar Gas' Statements of Income. Questar Gas participates in certain Dominion Questar benefit plans as described in Note 15 to the Financial Statements in Questar Gas' Annual Report on Form 10-K for the year ended December 31, 2016 . At March 31, 2017 and December 31, 2016 , amounts due from Dominion Questar associated with the Dominion Questar Corporation Retirement Plan and included in receivables from affiliates in the Balance Sheets were $100.3 million and $87.8 million , respectively. At March 31, 2017 and December 31, 2016, Questar Gas' amounts due to Dominion Questar associated with the Dominion Questar Corporation Umbrella Health Plan and included in payables to affiliates in the Balance Sheets were $13.1 million and $13.0 million , respectively. The Dominion Questar Combination resulted in merger and restructuring costs of $0.3 million charged from Dominion Questar for the three months ended March 31, 2017 . 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 had no balance under the IRCA with Dominion as of March 31, 2017 and a $48.0 million balance at December 31, 2016 . The weighted-average interest rate for these borrowing was 1.04% as of December 31, 2016 . Interest charges related to Questar Gas' total borrowings from Dominion and Dominion Questar were immaterial for the three months ended March 31, 2017 and $0.3 million for the three months ended March 31, 2016 . In March 2017, Questar Gas entered into agreements, at rates and on terms and conditions that are subject to regulation by FERC, with Questar Pipeline to extend transportation services through 2027. Under these agreements, Questar Gas will pay Questar Pipeline approximately $55 million annually. Also in March 2017, Questar Gas extended a storage contract, at rates and on terms and conditions that are subject to regulation by FERC, with Questar Pipeline through 2022. Under this extension, Questar Gas will pay Questar Pipeline approximately $2 million annually. |
Operating Segment
Operating Segment | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Operating Segment | Operating Segment 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 2017 primarily related to a $0.3 million ( $0.2 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: Questar Gas Corporate and Other Consolidated Total (millions) Three Months Ended March 31, 2017 Operating revenue $ 396.9 $ — $ 396.9 Net income (loss) 52.4 (0.2 ) 52.2 Three Months Ended March 31, 2016 Operating revenue $ 407.9 $ — $ 407.9 Net income 47.6 — 47.6 |
Significant Accounting Polici18
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | As permitted by the rules and regulations of the SEC, Questar Gas' accompanying unaudited Financial Statements contain certain condensed financial information and exclude certain footnote disclosures normally included in annual audited financial statements prepared in accordance with GAAP. |
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. |
Fair Value Measurements | Questar Gas reports certain contracts and instruments at fair value. 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. |
Reclassifications | Certain amounts in the 2016 Financial Statements and Notes have been reclassified to conform to the 2017 presentation for comparative purposes. The reclassifications did not affect Questar Gas' net income, total assets, liabilities, equity or cash flows |
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 March 31, 2017 , substantially all of Questar Gas' derivative assets and liabilities were not subject to a master netting or similar arrangement. |
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. |
Credit Risk | 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 March 31, 2017 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. |
Operating Revenue (Tables)
Operating Revenue (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Regulated and Unregulated Operating Revenue [Abstract] | |
Operating Revenue | Questar Gas' operating revenue consists of the following: Three Months Ended March 31, 2017 2016 (millions) Residential and commercial gas sales $ 378.5 $ 391.7 Industrial gas sales 3.2 5.0 Gas transportation 6.9 6.0 Other (1) 8.3 5.2 Total operating revenue $ 396.9 $ 407.9 (1) See Note 11 for amounts attributable to related parties. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Quantitative Information About Level 3 Fair Value Measurements | The following table presents Questar Gas' quantitative information about Level 3 fair value measurements at March 31, 2017. The range and weighted average are presented in dollars for market price inputs. Fair Value (millions) Valuation Techniques Unobservable Input Range Weighted Average (1) Liabilities Physical and financial forwards and futures: Natural gas (2) $ 1.3 Discounted cash flow Market price (per Dth) (3) 2.2 - 3.6 2.8 Total liabilities $ 1.3 (1) Averages weighted by volume. (2) Includes basis. (3) Represents market prices beyond defined terms for Levels 1 and 2. |
Sensitivity of Fair Value Measurements to Changes in Unobservable Inputs | Sensitivity of the fair value measurements to changes in the significant unobservable inputs is as follows: Significant Unobservable Inputs Position Change to Input Impact on Fair Value Measurement Market price Buy Increase (decrease) Gain (loss) Market price Sell Increase (decrease) Loss (gain) |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table presents Questar Gas’ liabilities that are measured at fair value on a recurring basis for each hierarchy level, including both current and noncurrent portions. Derivative assets at March 31, 2017 were immaterial. Level 1 Level 2 Level 3 Total (millions) At March 31, 2017 Liabilities: Derivatives: Commodity $ — $ — $ 1.3 $ 1.3 Total liabilities $ — $ — $ 1.3 $ 1.3 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. Three Months Ended March 31, 2017 2016 (millions) Beginning balance $ — $ — Total realized and unrealized gains (losses): Included in earnings (1) (0.1 ) — Included in regulatory assets/liabilities (1.3 ) — Settlements 0.1 — Ending balance $ (1.3 ) $ — (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: March 31, 2017 December 31, 2016 Carrying Amount Estimated Fair Value (1) Carrying Amount Estimated Fair Value (1) (millions) Long-term debt, including securities due within one year (2) $ 630.9 $ 675.0 $ 630.8 $ 672.6 (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) Carrying amount includes amounts which represent the unamortized debt issuance costs, discount or premium. |
Derivatives and Hedge Account21
Derivatives and Hedge Accounting Activities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, 2017 . These volumes are based on open derivative positions and represent the combined absolute value of its long and short positions, except in the case of offsetting transactions, for which they represent the absolute value of the net volume of its long and short positions. Current Noncurrent Natural Gas (bcf): Basis 7.7 26.4 |
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. Fair Value - Total (millions) At March 31, 2017 LIABILITIES Current Liabilities Commodity $ 0.1 $ 0.1 Total current derivative liabilities (2) 0.1 0.1 Noncurrent Liabilities Commodity 1.2 1.2 Total noncurrent derivative liabilities (3) 1.2 1.2 Total derivative liabilities $ 1.3 $ 1.3 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 other current assets in Questar Gas' Balance Sheets. (2) Current derivative liabilities are presented in other current liabilities in Questar Gas’ Balance Sheets. (3) Noncurrent derivative liabilities are presented in other noncurrent liabilities in Questar Gas' Balance Sheets. |
Derivative Instruments, Gain (Loss) | The following table presents the gains and losses on Questar Gas' derivatives, as well as where the associated activity is presented in its Statements of Income. Amount of Gain (Loss) Recognized in Income on Derivatives (1) Three months ended March 31, Derivatives not designated as hedging instruments 2017 2016 (millions) Derivative Type and Location of Gains (Losses) Commodity (2) $ (0.5 ) $ — Total $ (0.5 ) $ — (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. |
Regulatory Assets and Liabili22
Regulatory Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Regulated Operations [Abstract] | |
Schedule of Regulatory Assets | Regulatory assets and liabilities include the following: March 31, 2017 December 31, 2016 (millions) Regulatory assets: Purchased-gas adjustment (1) $ — $ 3.4 EEP (2) — 1.1 Contract withholding (3) — 2.6 Pipeline integrity costs (4) 1.9 1.9 Other — 0.6 Regulatory assets-current 1.9 9.6 Derivatives (5) 1.2 — Pipeline integrity costs (4) 1.4 2.3 Cost of reacquired debt (6) 3.1 3.2 Regulatory assets-noncurrent (7) 5.7 5.5 Total regulatory assets $ 7.6 $ 15.1 Regulatory liabilities: Purchased-gas adjustment (1) $ 20.1 $ — EEP (2) 2.0 — CET (8) 2.0 2.9 Cost of plant removal and AROs (9) 4.5 3.5 Other 0.1 0.1 Regulatory liabilities-current 28.7 6.5 Cost of plant removal and AROs (9) 190.8 189.1 Regulatory liabilities-noncurrent 190.8 189.1 Total regulatory liabilities $ 219.5 $ 195.6 (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) Represents a disputed amount withheld from a supplier of storage services. The dispute was settled in March 2017 and the amount reversed, which resulted in no material impact to Questar Gas' results of operations, financial position or cash flows. (4) 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. (5) Changes in the fair value of derivative instruments result in the recognition of regulatory assets or regulatory liabilities as they are expected to be recovered from or refunded to customers. (6) 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 5.8 years as of March 31, 2017 . (7) Noncurrent regulatory assets are presented in other noncurrent assets in the Balance Sheets. (8) Represents the difference between actual and allowed revenues. Any deficiency in amounts collected are recovered through periodic rate adjustments. (9) 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. |
Schedule of Regulatory Liabilities | Regulatory assets and liabilities include the following: March 31, 2017 December 31, 2016 (millions) Regulatory assets: Purchased-gas adjustment (1) $ — $ 3.4 EEP (2) — 1.1 Contract withholding (3) — 2.6 Pipeline integrity costs (4) 1.9 1.9 Other — 0.6 Regulatory assets-current 1.9 9.6 Derivatives (5) 1.2 — Pipeline integrity costs (4) 1.4 2.3 Cost of reacquired debt (6) 3.1 3.2 Regulatory assets-noncurrent (7) 5.7 5.5 Total regulatory assets $ 7.6 $ 15.1 Regulatory liabilities: Purchased-gas adjustment (1) $ 20.1 $ — EEP (2) 2.0 — CET (8) 2.0 2.9 Cost of plant removal and AROs (9) 4.5 3.5 Other 0.1 0.1 Regulatory liabilities-current 28.7 6.5 Cost of plant removal and AROs (9) 190.8 189.1 Regulatory liabilities-noncurrent 190.8 189.1 Total regulatory liabilities $ 219.5 $ 195.6 (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) Represents a disputed amount withheld from a supplier of storage services. The dispute was settled in March 2017 and the amount reversed, which resulted in no material impact to Questar Gas' results of operations, financial position or cash flows. (4) 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. (5) Changes in the fair value of derivative instruments result in the recognition of regulatory assets or regulatory liabilities as they are expected to be recovered from or refunded to customers. (6) 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 5.8 years as of March 31, 2017 . (7) Noncurrent regulatory assets are presented in other noncurrent assets in the Balance Sheets. (8) Represents the difference between actual and allowed revenues. Any deficiency in amounts collected are recovered through periodic rate adjustments. (9) 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. |
Significant Financing Transac23
Significant Financing Transactions (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Short-term Debt, Other Disclosures [Abstract] | |
Schedule of Short-term Debt | At March 31, 2017, Questar Gas' commercial paper and letters of credit outstanding under its joint credit facilities with Dominion, Virginia Power and Dominion Gas, were as follows: Facility (1) Outstanding Outstanding (millions) Joint revolving credit facility (1) $ 500.0 $ 147.0 $ — Joint revolving credit facility (1) 500.0 — — Total $ 1,000.0 $ 147.0 $ — (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 March 31, 2017, 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. 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. |
Related-Party Transactions (Tab
Related-Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The amounts of these services follow: Three Months Ended March 31, 2017 2016 (millions) Affiliated operator service fee (1) $ 75.9 $ 79.8 Transportation and storage services from affiliates (1) 19.6 19.2 Services provided by related parties 10.8 13.5 Services provided to related parties 1.5 0.5 (1) The costs of these services were included in cost of sales in Questar Gas' Statements of Income. |
Operating Segment (Tables)
Operating Segment (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following table presents segment information pertaining to Questar Gas' operations: Questar Gas Corporate and Other Consolidated Total (millions) Three Months Ended March 31, 2017 Operating revenue $ 396.9 $ — $ 396.9 Net income (loss) 52.4 (0.2 ) 52.2 Three Months Ended March 31, 2016 Operating revenue $ 407.9 $ — $ 407.9 Net income 47.6 — 47.6 |
Operating Revenue (Details)
Operating Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Public Utilities, General Disclosures [Line Items] | |||
Gas transportation | $ 6.9 | $ 6 | |
Other | [1] | 8.3 | 5.2 |
Total operating revenue | [2] | 396.9 | 407.9 |
Residential and commercial | |||
Public Utilities, General Disclosures [Line Items] | |||
Residential, commercial, and industrial sales | 378.5 | 391.7 | |
Industrial | |||
Public Utilities, General Disclosures [Line Items] | |||
Residential, commercial, and industrial sales | $ 3.2 | $ 5 | |
[1] | See Note 11 for amounts attributable to related parties. | ||
[2] | See Note 11 for amounts attributable to related parties. |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative Information About Level 3 Fair Value Measurements (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017USD ($)$ / MMBTU | Dec. 31, 2016USD ($) | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Derivative liabilities | $ 1.3 | $ 0.1 | |
Fair Value, Measurements, Recurring | Commodity | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Derivative liabilities | 1.3 | 0.1 | |
Level 3 | Fair Value, Measurements, Recurring | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Derivative liabilities | 1.3 | ||
Level 3 | Fair Value, Measurements, Recurring | Commodity | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Derivative liabilities | 1.3 | $ 0 | |
Level 3 | Fair Value, Measurements, Recurring | Natural Gas | Commodity | Discounted cash flow | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Derivative liabilities | [1] | $ 1.3 | |
Level 3 | Fair Value, Measurements, Recurring | Natural Gas | Minimum | Commodity | Discounted cash flow | Derivative Financial Instruments, Liabilities | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Fair value inputs, price | $ / MMBTU | [2] | 2.2 | |
Level 3 | Fair Value, Measurements, Recurring | Natural Gas | Maximum | Commodity | Discounted cash flow | Derivative Financial Instruments, Liabilities | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Fair value inputs, price | $ / MMBTU | [2] | 3.6 | |
Level 3 | Fair Value, Measurements, Recurring | Natural Gas | Weighted Average | Commodity | Discounted cash flow | Derivative Financial Instruments, Liabilities | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | |||
Fair value inputs, price | $ / MMBTU | [3] | 2.8 | |
[1] | Includes basis. | ||
[2] | Represents market prices beyond defined terms for Levels 1 and 2. | ||
[3] | Averages weighted by volume. |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Assets: | ||
Derivatives assets | $ 0.1 | |
Liabilities: | ||
Derivative liabilities | $ 1.3 | 0.1 |
Fair Value, Measurements, Recurring | ||
Assets: | ||
Total assets | 0.1 | |
Liabilities: | ||
Total liabilities | 1.3 | 0.1 |
Fair Value, Measurements, Recurring | Level 1 | ||
Assets: | ||
Total assets | 0 | |
Liabilities: | ||
Total liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | ||
Assets: | ||
Total assets | 0.1 | |
Liabilities: | ||
Total liabilities | 0 | 0.1 |
Fair Value, Measurements, Recurring | Level 3 | ||
Assets: | ||
Total assets | 0 | |
Liabilities: | ||
Derivative liabilities | 1.3 | |
Total liabilities | 1.3 | 0 |
Fair Value, Measurements, Recurring | Commodity | ||
Assets: | ||
Derivatives assets | 0.1 | |
Liabilities: | ||
Derivative liabilities | 1.3 | 0.1 |
Fair Value, Measurements, Recurring | Commodity | Level 1 | ||
Assets: | ||
Derivatives assets | 0 | |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Commodity | Level 2 | ||
Assets: | ||
Derivatives assets | 0.1 | |
Liabilities: | ||
Derivative liabilities | 0 | 0.1 |
Fair Value, Measurements, Recurring | Commodity | Level 3 | ||
Assets: | ||
Derivatives assets | 0 | |
Liabilities: | ||
Derivative liabilities | $ 1.3 | $ 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) - Commodity - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Beginning balance | $ 0 | $ 0 | |
Included in earnings | [1] | (0.1) | 0 |
Included in regulatory assets/liabilities | (1.3) | 0 | |
Settlements | 0.1 | 0 | |
Ending balance | $ (1.3) | $ 0 | |
[1] | The gains and losses included in earnings were classified in cost of sales. |
Fair Value Measurements - Sch30
Fair Value Measurements - Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments not Recorded at Fair Value (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | |
Carrying Amount | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt, including securities due within one year | [1] | $ 630.9 | $ 630.8 |
Estimated Fair Value | Level 2 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt, including securities due within one year | [1],[2] | $ 675 | $ 672.6 |
[1] | Carrying amount includes amounts which represent the unamortized debt issuance costs, discount 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. |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | ||
Unrealized gains or losses included in earnings in the Level 3 fair value category | $ 0 | $ 0 |
Derivatives and Hedge Account32
Derivatives and Hedge Accounting Activities - Schedule of Volume of Derivative Activity (Details) | 3 Months Ended |
Mar. 31, 2017MMcf | |
Fixed Price - Natural Gas - Current Derivative Contract | |
Derivative [Line Items] | |
Volume of derivative activity (bcf) | 7,700 |
Fixed Price - Natural Gas - Non-current Derivative Contract | |
Derivative [Line Items] | |
Volume of derivative activity (bcf) | 26,400 |
Derivatives and Hedge Account33
Derivatives and Hedge Accounting Activities - Schedule of Fair Values of Derivatives and Balance Sheet Location (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | |
Derivatives, Fair Value [Line Items] | |||
Derivatives assets | $ 0.1 | ||
Derivative liabilities | $ 1.3 | 0.1 | |
Current Assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivatives assets | [1] | 0.1 | |
Current Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liabilities | [2] | 0.1 | 0.1 |
Noncurrent Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liabilities | [3] | 1.2 | |
Fair Value - Derivatives not under Hedge Accounting | |||
Derivatives, Fair Value [Line Items] | |||
Derivatives assets | 0.1 | ||
Derivative liabilities | 1.3 | 0.1 | |
Fair Value - Derivatives not under Hedge Accounting | Current Assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivatives assets | [1] | 0.1 | |
Fair Value - Derivatives not under Hedge Accounting | Current Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liabilities | [2] | 0.1 | 0.1 |
Fair Value - Derivatives not under Hedge Accounting | Noncurrent Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liabilities | [3] | 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 | 0.1 | |
Commodity | Noncurrent Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liabilities | 1.2 | ||
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 | $ 0.1 | |
Commodity | Fair Value - Derivatives not under Hedge Accounting | Noncurrent Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liabilities | $ 1.2 | ||
[1] | Current derivative assets are presented in other current assets in Questar Gas' Balance Sheets. | ||
[2] | Current derivative liabilities are presented in other current liabilities in Questar Gas’ Balance Sheets. | ||
[3] | Noncurrent derivative liabilities are presented in other noncurrent liabilities in Questar Gas' Balance Sheets. |
Derivatives and Hedge Account34
Derivatives and Hedge Accounting Activities - Schedule of Gains and Losses on Derivatives (Details) - Derivatives not designated as hedging instruments - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Income on Derivatives | [1] | $ (0.5) | $ 0 |
Commodity | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Income on Derivatives | [1],[2] | $ (0.5) | |
[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. |
Regulatory Assets and Liabili35
Regulatory Assets and Liabilities - Regulatory Assets (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2017 | Dec. 31, 2016 | |||
Regulatory Assets [Line Items] | ||||
Regulatory assets-current | $ 1.9 | $ 9.6 | [1] | |
Regulatory assets-noncurrent | 5.7 | 5.5 | ||
Total regulatory assets | 7.6 | 15.1 | ||
Purchased-gas adjustment | ||||
Regulatory Assets [Line Items] | ||||
Regulatory assets-current | [2] | 0 | 3.4 | |
EEP | ||||
Regulatory Assets [Line Items] | ||||
Regulatory assets-current | [3] | 0 | 1.1 | |
Contract withholding | ||||
Regulatory Assets [Line Items] | ||||
Regulatory assets-current | [4] | 0 | 2.6 | |
Pipeline integrity costs | ||||
Regulatory Assets [Line Items] | ||||
Regulatory assets-current | [5] | 1.9 | 1.9 | |
Regulatory assets-noncurrent | [5] | 1.4 | 2.3 | |
Pipeline integrity costs | Maximum | ||||
Regulatory Assets [Line Items] | ||||
Allowed recovery amount per year | 7 | |||
Cost of reacquired debt | ||||
Regulatory Assets [Line Items] | ||||
Regulatory assets-noncurrent | $ 3.1 | 3.2 | ||
Cost of reacquired debt | Weighted Average | ||||
Regulatory Assets [Line Items] | ||||
Recovery period | 5 years 9 months | |||
Derivatives | ||||
Regulatory Assets [Line Items] | ||||
Regulatory assets-noncurrent | [5] | $ 1.2 | 0 | |
Other | ||||
Regulatory Assets [Line Items] | ||||
Regulatory assets-current | $ 0 | $ 0.6 | ||
[1] | Questar Gas' Balance Sheet at December 31, 2016 has been derived from the audited Balance Sheet at that date. | |||
[2] | Purchased-gas costs that are different from those provided for in present rates are accumulated and recovered or credited through future rate changes. | |||
[3] | 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. | |||
[4] | Represents a disputed amount withheld from a supplier of storage services. The dispute was settled in March 2017 and the amount reversed, which resulted in no material impact to Questar Gas' results of operations, financial position or cash flows. | |||
[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 $7.0 million per year. Costs incurred in excess of this amount will be recovered in future rate changes. |
Regulatory Assets and Liabili36
Regulatory Assets and Liabilities - Regulatory Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | ||
Regulatory Liabilities [Line Items] | ||||
Regulatory liabilities | $ 28.7 | $ 6.5 | [1] | |
Regulatory liabilities, noncurrent | 190.8 | 189.1 | [1] | |
Total regulatory liabilities | 219.5 | 195.6 | ||
Purchased-gas adjustment | ||||
Regulatory Liabilities [Line Items] | ||||
Regulatory liabilities | [2] | 20.1 | 0 | |
EEP | ||||
Regulatory Liabilities [Line Items] | ||||
Regulatory liabilities | [3] | 2 | 0 | |
CET | ||||
Regulatory Liabilities [Line Items] | ||||
Regulatory liabilities | [4] | 2 | 2.9 | |
Cost of plant removal and ARO's | ||||
Regulatory Liabilities [Line Items] | ||||
Regulatory liabilities | [5] | 4.5 | 3.5 | |
Regulatory liabilities, noncurrent | [5] | 190.8 | 189.1 | |
Other | ||||
Regulatory Liabilities [Line Items] | ||||
Regulatory liabilities | $ 0.1 | $ 0.1 | ||
[1] | Questar Gas' Balance Sheet at December 31, 2016 has been derived from the audited Balance Sheet at that date. | |||
[2] | Purchased-gas costs that are different from those provided for in present rates are accumulated and recovered or credited through future rate changes. | |||
[3] | 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. | |||
[4] | Represents the difference between actual and allowed revenues. Any deficiency in amounts collected are recovered through periodic rate adjustments. | |||
[5] | 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. |
Regulatory Matters (Details)
Regulatory Matters (Details) | Mar. 31, 2017regulatory_commission |
Regulated Operations [Abstract] | |
Number of regulatory commissions | 2 |
Significant Financing Transac38
Significant Financing Transactions (Details) | Mar. 31, 2017USD ($)facility | |
Line of Credit Facility [Line Items] | ||
Facility Limit | $ 1,000,000,000 | [1] |
Outstanding Commercial Paper | 147,000,000 | |
Outstanding Letters of Credit | $ 0 | |
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 | |
Credit Facility $5 Billion | ||
Line of Credit Facility [Line Items] | ||
Facility Limit | 500,000,000 | [1] |
Outstanding Commercial Paper | 147,000,000 | [1] |
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] |
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 March 31, 2017, 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. 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 $1.0 billion (or the sub-limit, whichever is less) of letters of credit. |
Commitments and Contingencies (
Commitments and Contingencies (Details) | Mar. 31, 2017site |
Unfavorable Regulatory Action | Coal Tar and Other Potentially Harmful Materials | EPA | |
Other Commitments [Line Items] | |
Number of former manufactured gas plant sites | 2 |
Related-Party Transactions (Det
Related-Party Transactions (Details) - USD ($) | 3 Months Ended | ||||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |||
Related Party Transaction [Line Items] | |||||
Receivable from affiliates | $ 100,300,000 | $ 87,800,000 | [1] | ||
Payables to affiliates | 13,100,000 | 13,000,000 | [1] | ||
Affiliated current borrowings | 0 | $ 48,000,000 | [1] | ||
Affiliated operator service fee | |||||
Related Party Transaction [Line Items] | |||||
Related party expenses in cost of sales | [2] | 75,900,000 | $ 79,800,000 | ||
Transportation and storage services from affiliates | |||||
Related Party Transaction [Line Items] | |||||
Related party expenses in cost of sales | [2] | 19,600,000 | 19,200,000 | ||
Services provided by/to related parties | |||||
Related Party Transaction [Line Items] | |||||
Related party expenses | 10,800,000 | 13,500,000 | |||
Related party revenues | 1,500,000 | 500,000 | |||
Dominion | Revolving Credit Facility | IRCA | |||||
Related Party Transaction [Line Items] | |||||
Weighted-average interest rate percentage | 1.04% | ||||
Related party interest expense | 0 | 300,000 | |||
Questar Pipeline | Transportation services | |||||
Related Party Transaction [Line Items] | |||||
Annual commitment | 55,000,000 | ||||
Questar Pipeline | Storage contract | |||||
Related Party Transaction [Line Items] | |||||
Annual commitment | 2,000,000 | ||||
Dominion Questar Corporation | Dominion Questar Corporation | Merger and restructuring costs | |||||
Related Party Transaction [Line Items] | |||||
Transaction costs | $ 300,000 | $ 0 | |||
[1] | Questar Gas' Balance Sheet at December 31, 2016 has been derived from the audited Balance Sheet at that date. | ||||
[2] | 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 Dominion Questar combination - Dominion Questar Corporation - Dominion Questar Corporation - USD ($) | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Segment Reporting Information [Line Items] | |||
Transaction costs | $ 300,000 | $ 0 | |
Corporate and Other | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Transaction costs | [1] | 300,000 | |
Transaction costs, net of tax | $ 200,000 | ||
[1] | See Note 11 for amounts attributable to related parties. |
Operating Segment - Schedule of
Operating Segment - Schedule of Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Segment Reporting Information [Line Items] | |||
Operating revenue | [1] | $ 396.9 | $ 407.9 |
Net income (loss) | 52.2 | 47.6 | |
Questar Gas | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Operating revenue | 396.9 | 407.9 | |
Net income (loss) | 52.4 | 47.6 | |
Corporate and Other | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Operating revenue | 0 | 0 | |
Net income (loss) | $ (0.2) | $ 0 | |
[1] | See Note 11 for amounts attributable to related parties. |