Document And Entity Information
Document And Entity Information | 3 Months Ended |
Mar. 31, 2020shares | |
Entity Information [Line Items] | |
Entity Registrant Name | PUGET SOUND ENERGY INC |
Entity Central Index Key | 0000081100 |
Current Fiscal Year End Date | --12-13 |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 85,903,791 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q1 |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Mar. 31, 2020 |
Entity Emerging Growth Company | false |
Entity Small Business | true |
Entity Shell Company | false |
Document Transition Report | false |
Document Quarterly Report | true |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating revenue: | ||
Electric | $ 669,090 | $ 798,928 |
Natural Gas | 371,031 | 304,668 |
Other | 6,009 | 11,243 |
Total operating revenue | 1,046,130 | 1,114,839 |
Energy costs: | ||
Purchased electricity | 165,742 | 270,702 |
Electric generation fuel | 63,624 | 77,199 |
Residential exchange | (24,634) | (25,163) |
Purchased natural gas | 154,876 | 99,387 |
Unrealized (gain) loss on derivative instruments, net | 48,541 | (15,187) |
Utility operations and maintenance | 154,922 | 157,955 |
Non-utility expense and other | 12,962 | 13,757 |
Depreciation & Amortization | 164,816 | 180,697 |
Conservation amortization | 27,393 | 33,286 |
Taxes other than income taxes | 105,504 | 108,746 |
Total operating expenses | 873,746 | 901,379 |
Operating income(loss) | 172,384 | 213,460 |
Other income (expense): | ||
Other income | 14,059 | 13,564 |
Other expense | (2,282) | (1,776) |
Interest charges: | ||
AFUDC | 3,643 | 3,350 |
Interest expense | (88,884) | (88,016) |
Income (loss) before income taxes | 98,920 | 140,582 |
Income tax (benefit) expense | 3,984 | 8,428 |
Net income (loss) | 94,936 | 132,154 |
Subsidiaries [Member] | ||
Operating revenue: | ||
Electric | 669,090 | 798,928 |
Natural Gas | 371,031 | 304,668 |
Other | 6,009 | 11,243 |
Total operating revenue | 1,046,130 | 1,114,839 |
Energy costs: | ||
Purchased electricity | 165,742 | 270,702 |
Electric generation fuel | 63,624 | 77,199 |
Residential exchange | (24,634) | (25,163) |
Purchased natural gas | 154,876 | 99,387 |
Unrealized (gain) loss on derivative instruments, net | 48,541 | (15,187) |
Utility operations and maintenance | 154,922 | 157,955 |
Non-utility expense and other | 12,735 | 13,077 |
Depreciation & Amortization | 164,771 | 180,678 |
Conservation amortization | 27,393 | 33,286 |
Taxes other than income taxes | 105,504 | 108,746 |
Total operating expenses | 873,474 | 900,680 |
Operating income(loss) | 172,656 | 214,159 |
Other income (expense): | ||
Other income | 11,283 | 10,549 |
Other expense | (2,282) | (1,776) |
Interest charges: | ||
AFUDC | 3,643 | 3,350 |
Interest expense | (60,714) | (60,150) |
Income (loss) before income taxes | 124,586 | 166,132 |
Income tax (benefit) expense | 13,265 | 18,830 |
Net income (loss) | $ 111,321 | $ 147,302 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Net Income (loss) | $ 94,936 | $ 132,154 |
Other comprehensive income(loss): | ||
Net unrealized gain (loss) from pension and postretirement plans, net of tax | 5,170 | 92 |
Other comprehensive income (loss) | 5,170 | 92 |
Comprehensive income (loss) | 100,106 | 132,246 |
Net unrealized gain (loss) from pension and postretirement plans, net of tax | 1,373 | 25 |
Subsidiaries [Member] | ||
Net Income (loss) | 111,321 | 147,302 |
Other comprehensive income(loss): | ||
Net unrealized gain (loss) from pension and postretirement plans, net of tax | 7,710 | 2,510 |
Amortization Of Financing Cash Flow Hedge Contracts To Earnings During Period Net Of Tax | 96 | 96 |
Other comprehensive income (loss) | 7,806 | 2,606 |
Comprehensive income (loss) | 119,127 | 149,908 |
Net unrealized gain (loss) from pension and postretirement plans, net of tax | 2,047 | 668 |
Amortization of Financing Cash Flow Hedge Contracts to Earnings Tax | $ 26 | $ 26 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Net unrealized gain (loss) from pension and postretirement plans, net of tax | $ 1,373 | $ 25 |
Subsidiaries [Member] | ||
Net unrealized gain (loss) from pension and postretirement plans, net of tax | 2,047 | 668 |
Amortization of treasury interest rate swaps to earnings, net of tax | $ 26 | $ 26 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Utility Plant [Abstract] | ||
Electric plant | $ 8,916,451 | $ 8,811,889 |
Natural gas plant | 4,000,428 | 3,916,040 |
Common plant | 1,104,162 | 1,096,649 |
Less: Accumulated depreciation and amortization | (3,355,008) | (3,236,240) |
Net utility plant | 10,666,033 | 10,588,338 |
Other property and investments: | ||
Goodwill | 1,656,513 | 1,656,513 |
Other property and investments | 285,262 | 286,975 |
Total other property and investments | 1,941,775 | 1,943,488 |
Current assets: | ||
Cash and cash equivalents | 10,614 | 45,259 |
Restricted cash | 31,388 | 20,887 |
Accounts Receivable, after Allowance for Credit Loss, Current | 320,525 | 316,352 |
Unbilled revenue | 196,364 | 224,657 |
Materials and supplies, at average cost | 114,612 | 115,684 |
Fuel and natural gas inventory, at average cost | 37,586 | 52,083 |
Unrealized gain on derivative instruments | 14,906 | 23,626 |
Prepaid expense and other | 27,253 | 27,504 |
Power contract acquisition adjustment gain | 10,769 | 9,067 |
Total current assets | 764,017 | 835,119 |
Other long-term and regulatory assets: | ||
Power cost adjustment mechanism | 46,278 | 41,745 |
Regulatory assets related to power contracts | 13,731 | 14,146 |
Other regulatory assets | 665,927 | 673,021 |
Unrealized gain on derivative instruments | 3,718 | 7,682 |
Power contract acquisition adjustment gain | 91,295 | 147,530 |
Operating lease right-of-use asset | 180,188 | 183,048 |
Other | 89,665 | 92,980 |
Total other long-term and regulatory assets | 1,182,139 | 1,292,918 |
Total assets | 14,553,964 | 14,659,863 |
Capitalization | ||
Common stock | 0 | 0 |
Additional paid-in capital | 3,308,957 | 3,308,957 |
Retained earnings | 847,782 | 775,491 |
Accumulated other comprehensive income (loss), net of tax | (78,979) | (84,149) |
Total common shareholder’s equity | 4,077,760 | 4,000,299 |
Long-term debt: | ||
First mortgage bonds and senior notes | 4,212,000 | 4,212,000 |
Pollution control bonds | 161,860 | 161,860 |
Long-term debt | 1,765,500 | 1,758,100 |
Debt discount issuance costs and other | (208,542) | (211,635) |
Total long-term debt | 5,930,818 | 5,920,325 |
Total capitalization | 10,008,578 | 9,920,624 |
Current liabilities: | ||
Accounts payable | 279,048 | 325,913 |
Short-term debt | 76,000 | 176,000 |
Accrued expenses: | ||
Taxes | 121,157 | 99,979 |
Salaries and wages | 32,853 | 50,091 |
Interest | 80,001 | 74,855 |
Unrealized loss on derivative instruments | 41,709 | 13,428 |
Power contract acquisition adjustment loss | 2,332 | 2,418 |
Operating lease liabilities | 16,183 | 15,862 |
Other | 111,538 | 107,809 |
Total current liabilities | 1,213,233 | 1,318,767 |
Other long-term and regulatory liabilities: | ||
Unrealized loss on derivative instruments | 29,506 | 12,693 |
Regulatory liabilities | 705,212 | 730,879 |
Regulatory liability for deferred income taxes | 939,004 | 946,179 |
Regulatory liabilities related to power contracts | 102,064 | 156,597 |
Power contract acquisition adjustment loss | 11,399 | 11,728 |
Operating lease liabilities | 170,638 | 174,327 |
Total long-term and regulatory liabilities | 3,332,153 | 3,420,472 |
Commitments and Contingencies | ||
Total capitalization and liabilities | 14,553,964 | 14,659,863 |
purchase gas adjustment, long-term | 91,337 | 132,766 |
Long-term Debt, Current Maturities | 452,412 | 452,412 |
Public Utilities, Property, Plant and Equipment, Construction Work in Progress | 649,600 | 591,199 |
Allowance for doubtful accounts | $ 9,814 | 8,294 |
Common stock, par value (in dollars per share) | $ 0.01 | |
Common stock, shares authorized (in shares) | 1,000 | |
Common Stock, Shares, Outstanding | 200 | |
Other Deferred Credits | $ 532,459 | 563,349 |
Deferred Tax and Other Liabilities, Noncurrent | 841,871 | 824,720 |
Subsidiaries [Member] | ||
Utility Plant [Abstract] | ||
Electric plant | 10,768,636 | 10,671,328 |
Natural gas plant | 4,561,810 | 4,478,048 |
Common plant | 1,128,888 | 1,121,568 |
Less: Accumulated depreciation and amortization | (5,793,301) | (5,682,606) |
Net utility plant | 10,666,033 | 10,588,338 |
Other property and investments: | ||
Other property and investments | 80,929 | 81,112 |
Total other property and investments | 80,929 | 81,112 |
Current assets: | ||
Cash and cash equivalents | 9,433 | 44,004 |
Restricted cash | 31,388 | 20,887 |
Accounts Receivable, after Allowance for Credit Loss, Current | 321,630 | 319,229 |
Unbilled revenue | 196,364 | 224,657 |
Materials and supplies, at average cost | 114,612 | 115,684 |
Fuel and natural gas inventory, at average cost | 36,321 | 50,818 |
Unrealized gain on derivative instruments | 14,906 | 23,626 |
Prepaid expense and other | 27,253 | 27,504 |
Total current assets | 751,907 | 826,409 |
Other long-term and regulatory assets: | ||
Power cost adjustment mechanism | 46,278 | 41,745 |
Other regulatory assets | 665,927 | 673,021 |
Unrealized gain on derivative instruments | 3,718 | 7,682 |
Operating lease right-of-use asset | 180,188 | 183,048 |
Other | 87,743 | 90,924 |
Total other long-term and regulatory assets | 1,075,191 | 1,129,186 |
Total assets | 12,574,060 | 12,625,045 |
Capitalization | ||
Common stock | 859 | 859 |
Additional paid-in capital | 3,485,105 | 3,485,105 |
Retained earnings | 808,720 | 751,193 |
Accumulated other comprehensive income (loss), net of tax | (180,671) | (188,477) |
Total common shareholder’s equity | 4,114,013 | 4,048,680 |
Long-term debt: | ||
First mortgage bonds and senior notes | 4,212,000 | 4,212,000 |
Pollution control bonds | 161,860 | 161,860 |
Debt discount issuance costs and other | (37,248) | (37,718) |
Total long-term debt | 4,336,612 | 4,336,142 |
Total capitalization | 8,450,625 | 8,384,822 |
Current liabilities: | ||
Accounts payable | 288,150 | 325,980 |
Short-term debt | 76,000 | 176,000 |
Accrued expenses: | ||
Taxes | 126,827 | 99,977 |
Salaries and wages | 32,853 | 50,091 |
Interest | 57,582 | 48,917 |
Unrealized loss on derivative instruments | 41,709 | 13,428 |
Operating lease liabilities | 16,183 | 15,862 |
Other | 111,538 | 107,809 |
Total current liabilities | 753,254 | 840,476 |
Other long-term and regulatory liabilities: | ||
Unrealized loss on derivative instruments | 29,506 | 12,693 |
Regulatory liabilities | 703,947 | 729,614 |
Regulatory liability for deferred income taxes | 939,759 | 946,936 |
Operating lease liabilities | 170,638 | 174,327 |
Total long-term and regulatory liabilities | 3,370,181 | 3,399,747 |
Commitments and Contingencies | ||
Total capitalization and liabilities | 12,574,060 | 12,625,045 |
purchase gas adjustment, long-term | 91,337 | 132,766 |
Long-term Debt, Current Maturities | 2,412 | 2,412 |
Public Utilities, Property, Plant and Equipment, Construction Work in Progress | 649,600 | 591,199 |
Allowance for doubtful accounts | $ 9,814 | 8,294 |
Common stock, par value (in dollars per share) | $ 0.01 | |
Common stock, shares authorized (in shares) | 150,000,000 | |
Common Stock, Shares, Outstanding | 85,903,791 | |
Other Deferred Credits | $ 527,701 | 559,014 |
Deferred Tax and Other Liabilities, Noncurrent | $ 998,630 | $ 977,163 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Construction work in progress | $ 649,600 | $ 591,199 |
Current assets: | ||
Allowance for doubtful accounts | $ 9,814 | 8,294 |
Common shareholder’s equity: | ||
Common stock, par value (in dollars per share) | $ 0.01 | |
Common stock, shares authorized (in shares) | 1,000 | |
Common Stock, Shares, Outstanding | 200 | |
Subsidiaries [Member] | ||
ASSETS | ||
Construction work in progress | $ 649,600 | 591,199 |
Current assets: | ||
Allowance for doubtful accounts | $ 9,814 | $ 8,294 |
Common shareholder’s equity: | ||
Common stock, par value (in dollars per share) | $ 0.01 | |
Common stock, shares authorized (in shares) | 150,000,000 | |
Common Stock, Shares, Outstanding | 85,903,791 |
CONSOLIDATED STATEMENTS OF COMM
CONSOLIDATED STATEMENTS OF COMMON SHAREHOLDER’S EQUITY Statement - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Subsidiaries [Member] | Subsidiaries [Member]Common Stock [Member] | Subsidiaries [Member]Additional Paid-in Capital [Member] | Subsidiaries [Member]Retained Earnings [Member] | Subsidiaries [Member]AOCI Attributable to Parent [Member] |
Beginning Balance (in shares) at Dec. 31, 2018 | 200 | 85,903,791 | ||||||||
Beginning Balance at Dec. 31, 2018 | $ 3,860,758 | $ 0 | $ 3,308,957 | $ 629,003 | $ (77,202) | $ 3,707,924 | $ 859 | $ 3,275,105 | $ 622,844 | $ (190,884) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income (loss) | 132,154 | 132,154 | 147,302 | 147,302 | ||||||
Common stock dividend paid | (35,994) | (35,994) | (64,604) | (64,604) | ||||||
Other comprehensive income (loss) | 92 | 92 | 2,606 | 2,606 | ||||||
Ending Balance (in shares) at Mar. 31, 2019 | 200 | 85,903,791 | ||||||||
Ending Balance at Mar. 31, 2019 | 3,957,010 | $ 0 | 3,308,957 | 725,163 | (77,110) | 3,793,228 | $ 859 | 3,275,105 | 705,542 | (188,278) |
Beginning Balance (in shares) at Dec. 31, 2019 | 200 | 85,903,791 | ||||||||
Beginning Balance at Dec. 31, 2019 | 4,000,299 | $ 0 | 3,308,957 | 775,491 | (84,149) | 4,048,680 | $ 859 | 3,485,105 | 751,193 | (188,477) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income (loss) | 94,936 | 94,936 | 111,321 | 111,321 | ||||||
Common stock dividend paid | (22,645) | (22,645) | (53,794) | (53,794) | ||||||
Other comprehensive income (loss) | $ 5,170 | 5,170 | $ 7,806 | 7,806 | ||||||
Ending Balance (in shares) at Mar. 31, 2020 | 200 | 200 | 85,903,791 | 85,903,791 | ||||||
Ending Balance at Mar. 31, 2020 | $ 4,077,760 | $ 0 | $ 3,308,957 | $ 847,782 | $ (78,979) | $ 4,114,013 | $ 859 | $ 3,485,105 | $ 808,720 | $ (180,671) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating activities: | ||
Net Income (loss) | $ 94,936 | $ 132,154 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation & Amortization | 164,816 | 180,697 |
Conservation amortization | 27,393 | 33,286 |
Deferred income taxes and tax credits, net | 8,602 | 11,401 |
Net unrealized (gain) loss on derivative instruments | 48,541 | (15,187) |
AFUDC - equity | (5,603) | (3,597) |
Production tax credit utilization | (23,543) | (27,131) |
Other non-cash | (6,075) | 3,722 |
Regulatory assets and liabilities | (16,865) | (15,838) |
Purchased gas adjustment | 41,429 | (137,092) |
Other long term assets and liabilities | (27,016) | (13,463) |
Change in certain current assets and liabilities: | ||
Accounts receivable and unbilled revenue | 24,120 | (24,413) |
Materials and supplies | 1,072 | (4,063) |
Fuel and natural gas inventory | 14,497 | 13,190 |
Prepayments and other | 251 | (5,964) |
Purchased gas adjustment | 0 | 9,921 |
Accounts payable | (45,236) | 45,827 |
Taxes payable | 21,178 | 11,140 |
Other | (11,126) | 3,607 |
Net cash provided by (used in) operating activities | 311,371 | 198,197 |
Investing activities: | ||
Construction expenditures - excluding equity AFUDC | (223,707) | (227,807) |
Other | (233) | 264 |
Net cash provided by (used in) investing activities | (223,940) | (227,543) |
Financing activities: | ||
Change in short-term debt, net | (100,000) | 52,703 |
Dividends paid | (22,645) | (35,994) |
Proceeds from long-term debt and bonds issued | 7,400 | 13,400 |
Other | 3,670 | 6,714 |
Net cash provided by (used in) financing activities | (111,575) | 36,823 |
Net increase (decrease) in cash, cash equivalents, and restricted cash | (24,144) | 7,477 |
Cash, cash equivalents, and restricted cash at beginning of period | 66,146 | 55,562 |
Cash, cash equivalents, and restricted cash at end of period | 42,002 | 63,039 |
Supplemental cash flow information: | ||
Cash payments for interest (net of capitalized interest) | 78,636 | 46,036 |
Non-cash financing and investing activities: | ||
Accounts payable for capital expenditures eliminated from cash flows | 56,699 | 77,400 |
Subsidiaries [Member] | ||
Operating activities: | ||
Net Income (loss) | 111,321 | 147,302 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation & Amortization | 164,771 | 180,678 |
Conservation amortization | 27,393 | 33,286 |
Deferred income taxes and tax credits, net | 12,215 | 19,293 |
Net unrealized (gain) loss on derivative instruments | 48,541 | (15,187) |
AFUDC - equity | (5,603) | (3,597) |
Production tax credit utilization | (23,543) | (27,131) |
Other non-cash | (8,711) | 1,109 |
Regulatory assets and liabilities | (16,865) | (15,838) |
Purchased gas adjustment | 41,429 | (137,092) |
Other long term assets and liabilities | (23,801) | (11,959) |
Change in certain current assets and liabilities: | ||
Accounts receivable and unbilled revenue | 25,892 | (19,711) |
Materials and supplies | 1,072 | (4,063) |
Fuel and natural gas inventory | 14,497 | 13,190 |
Prepayments and other | 251 | (5,964) |
Purchased gas adjustment | 0 | 9,921 |
Accounts payable | (36,201) | 45,714 |
Taxes payable | 26,850 | 13,650 |
Other | (7,607) | 8,006 |
Net cash provided by (used in) operating activities | 351,901 | 231,607 |
Investing activities: | ||
Construction expenditures - excluding equity AFUDC | (225,612) | (218,006) |
Other | (233) | 264 |
Net cash provided by (used in) investing activities | (225,845) | (217,742) |
Financing activities: | ||
Change in short-term debt, net | (100,000) | 52,703 |
Dividends paid | (53,794) | (64,604) |
Other | 3,668 | 6,712 |
Net cash provided by (used in) financing activities | (150,126) | (5,189) |
Net increase (decrease) in cash, cash equivalents, and restricted cash | (24,070) | 8,676 |
Cash, cash equivalents, and restricted cash at beginning of period | 64,891 | 53,493 |
Cash, cash equivalents, and restricted cash at end of period | 40,821 | 62,169 |
Supplemental cash flow information: | ||
Cash payments for interest (net of capitalized interest) | 47,115 | 43,181 |
Non-cash financing and investing activities: | ||
Accounts payable for capital expenditures eliminated from cash flows | $ 56,699 | $ 77,400 |
Summary of Consolidation and Si
Summary of Consolidation and Significant Accounting Policy | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Summary of Consolidation and Significant Accounting Policy Basis of Presentation Puget Energy is an energy services holding company that owns Puget Sound Energy. PSE is a public utility incorporated in the state of Washington that furnishes electric and natural gas services in a territory covering approximately 6,000 square miles, primarily in the Puget Sound region. Puget Energy also has a wholly-owned non-regulated subsidiary, Puget LNG, LLC, which has the sole purpose of owning, developing and financing the non-regulated activity of the Tacoma LNG facility, currently under construction. PSE and Puget LNG are considered related parties with similar ownership by Puget Energy. Therefore, capital and operating costs that are incurred by PSE and allocated to Puget LNG are related party transactions by nature. In 2009, Puget Holdings, LLC (Puget Holdings), owned by a consortium of long-term infrastructure investors, completed its merger with Puget Energy (the merger). As a result of the merger, all of Puget Energy’s common stock is indirectly owned by Puget Holdings. The acquisition of Puget Energy was accounted for in accordance with FASB ASC 805, “Business Combinations”, as of the date of the merger. ASC 805 requires the acquirer to recognize and measure identifiable assets acquired and liabilities assumed at fair value as of the merger date. The consolidated financial statements of Puget Energy reflect the accounts of Puget Energy and its subsidiaries. PSE’s consolidated financial statements include the accounts of PSE and its subsidiary. Puget Energy and PSE are collectively referred to herein as “the Company”. The consolidated financial statements are presented after elimination of all significant intercompany items and transactions. PSE’s consolidated financial statements continue to be accounted for on a historical basis and do not include any ASC 805, “Business Combinations” purchase accounting adjustments. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Allowance for Credit Losses On January 1, 2020, the Company adopted ASU 2016-13 Financial Instruments – Credit Losses (ASC 326) which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (CECL) methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including trade receivables, loan receivables, and held-to-maturity debt securities. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor in accordance with Topic 842 on leases. The only financial assets within the scope of ASU 2016-13 for the Company are trade receivables. The Company adopted ASU 2016-13 using the modified retrospective method. Results for reporting periods beginning after January 1, 2020 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. The Company did not record an adjustment to retained earnings as of January 1, 2020, for the cumulative effect of adopting ASU 2016-13, as the impact was immaterial. Management measures expected credit losses on trade receivables on a collective basis by receivable type, which include electric retail receivables, gas retail receivables, and electric wholesale receivables. The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. The following table presents the activity in the allowance for credit losses for accounts receivable for the quarter ended March 31, 2020: March 31, 2020 Allowance for credit losses: Beginning balance $ 8,294 Provision for credit loss expense 4,894 Receivables charged-off (3,374) Total ending allowance balance $ 9,814 Tacoma LNG Facility In August 2015, PSE filed a proposal with the Washington Commission to develop an LNG facility at the Port of Tacoma. Currently under construction at the Port of Tacoma, the facility is expected to be operational in 2021. The Tacoma LNG facility is designed to provide peak-shaving services to PSE’s natural gas customers. By storing surplus natural gas, PSE is able to meet the requirements of peak consumption. LNG will also provide fuel to transportation customers, particularly in the marine market. On January 24, 2018, Puget Sound Clean Air Agency (PSCAA) determined a Supplemental Environmental Impact Statement (SEIS) was necessary in order to rule on the air quality permit for the facility. As a result of requiring a SEIS, the Company's construction schedule was impacted. PSE received the SEIS which concluded the LNG facility would result in a net decrease in GHG emissions providing, in part, that the natural gas for the facility was sourced from British Columbia or Alberta. On December 10, 2019, the PSCAA approved the Notice of Construction permit, a decision which has been appealed to the Washington Pollution Control Hearings Board by each of the Puyallup Tribe of Indians and nonprofit law firm Earthjustice. If delayed, the construction schedule and costs may be adversely impacted. Pursuant to an order by the Washington Utilities and Transportation Commission (Washington Commission), PSE will be allocated approximately 43.0% of common capital and operating costs, consistent with the regulated portion of the Tacoma LNG facility. The remaining 57.0% of common capital and operating costs of the Tacoma LNG facility will be allocated to Puget LNG. Per this allocation of costs, $198.0 million and $199.9 million of construction work in progress related to Puget LNG's portion of the Tacoma LNG facility is reported in the Puget Energy "Other property and investments" line item as of March 31, 2020 and December 31, 2019, respectively. Additionally, $0.3 million of operating costs are reported in the Puget Energy "Non-utility expense and other" financial statement line item for each of the three months ended March 31, 2020, and March 31, 2019, respectively. Additionally, $173.5 million and $162.8 million of construction work in progress related to PSE’s portion of the Tacoma LNG facility is reported in the PSE “Utility plant - Natural gas plant” financial statement line item as of March 31, 2020 and December 31, 2019, respectively, as PSE is a regulated entity. |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2020 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Credit Losses In June 2016, the FASB issued ASU 2016-13, " Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments". The amendments in the update change how entities account for credit losses on receivables and certain other assets. The guidance requires use of a current expected loss model, which may result in earlier recognition of credit losses than under previous accounting standards. ASU 2016-13 is effective for interim and annual periods beginning on or after December 15, 2019. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including trade receivables. It also applies to off-balance sheet credit exposures not accounted for as insurance and net investments in leases recognized by a lessor in accordance with Topic 842. The Company adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost. Results for reporting periods beginning after January 1, 2020, are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. Upon implementation as of January 1, 2020, the impact was immaterial and the Company did not record a transition adjustment to retained earnings. Fair Value Measurement In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement" . The amendments in this update modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement, based on the concepts in the Concepts Statement, including the consideration of costs and benefits. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company adopted this update as of January 1, 2020, and it impacted Note 5, "Fair Value Measurements". As the amendment contemplates changes in disclosures only, it has no material impact on the Company's results of operations, cash flows, or consolidated balance sheets. Reference Rate Reform In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting ” (Issued March 2020): ASU 2020-04 provides temporary optional expedients and exceptions to the current guidance on contract modifications to ease the financial reporting burdens related to the expected market transition from LIBOR and other interbank offered rates to alternative reference rates. The Company has term loans, credit agreements, and promissory notes that reference LIBOR. As of March 31, 2020, the Company has not utilized any of the expedients discussed within this ASU, however, it continues to assess other agreements to determine if LIBOR is included and if the expedients would be utilized through the allowed period of December 2022. Accounting Standards Issued but Not Yet Adopted Retirement Benefits In August 2018, the FASB issued ASU 2018-14, " Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans" . This update modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans through added, removed, and clarified requirements of relevant disclosures. The amendments in this update are effective for fiscal years ending after December 15, 2020, for public business entities and for fiscal years ending after December 15, 2021, for all other entities. Accordingly, the Company will implement this update as of December 31, 2020. The Company is in the process of evaluating potential impacts of these amendments to the required annual retirement benefits disclosures. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The following table presents disaggregated revenue from contracts with customers, and other revenue by major source: Puget Energy and (Dollars in Thousands) Three Months Ended Revenue from contracts with customers: 2020 2019 Electric retail $ 607,693 $ 637,189 Natural gas retail 365,637 322,560 Other 43,774 135,696 Total revenue from contracts with customers 1,017,104 1,095,445 Alternative revenue programs 1,150 (25,231) Other non-customer revenue 27,876 44,625 Total operating revenue $ 1,046,130 $ 1,114,839 Revenue at PSE is recognized when performance obligations under the terms of a contract or tariff with our customers are satisfied. Performance obligations are satisfied generally through performance of PSE's obligation over time or with transfer of control of electric power, natural gas, and other revenue from contracts with customers. Revenue is measured as the amount of consideration expected to be received in exchange for transferring goods and services. Electric and Natural Gas Retail Revenue Electric and natural gas retail revenue consists of tariff-based sales of electricity and natural gas to PSE's customers. For tariff contracts, PSE has elected the portfolio approach practical expedient model to apply the revenue from contracts with customers to groups of contracts. The Company determined that the portfolio approach will not differ from considering each contract or performance obligation separately. Electric and natural gas tariff contracts include the performance obligation of standing ready to perform electric and natural gas services. The electricity and natural gas the customer chooses to consume is considered an option and is recognized over time using the output method when the customer simultaneously consumes the electricity or natural gas. PSE has elected the right to invoice practical expedient for unbilled retail revenue. The obligation of standing ready to perform electric service and the consumption of electricity and natural gas at market value implies a right to consideration for performance completed to date. The Company believes that tariff prices approved by the Washington Commission represent stand-alone selling prices for the performance obligations under ASC 606. PSE collects Washington State excise taxes (which are a component of general retail customer rates) and municipal taxes and presents the taxes on a gross basis, as PSE is the taxpayer for those excise and municipal taxes. Other Revenue from Contracts with Customers Other revenue from contracts with customers is primarily comprised of electric transmission, natural gas transportation, biogas, and wholesale revenue sold on an intra-month basis. Electric Transmission and Natural Gas Transportation Revenue Transmission and transportation tariff contracts include the performance obligation to transmit and transport electricity or natural gas. Transfer of control and recognition of revenue occurs over time as the customer simultaneously receives the transmission and transportation services. Measurement of satisfaction of this performance obligation is determined using the output method. Similar to retail revenue, the Company utilizes the right to invoice practical expedient as PSE’s right to consideration is tied directly to the value of power and natural gas transmitted and transported each month. The price is based on the tariff rates that were approved by the Washington Commission or the FERC and, therefore, corresponds directly to the value to the customer for performance completed to date. Biogas Biogas is a renewable natural gas fuel that PSE purchases and sells along with the renewable green attributes derived from the renewable natural gas. Biogas contracts include the performance obligations of biogas and renewable credit delivery upon PSE receiving produced biogas from its supplier. Transfer of control and recognition of revenue occurs at a point in time as biogas is considered a storable commodity and may not be consumed as it is delivered. Wholesale Wholesale revenue at PSE includes sales of electric power and non-core natural gas to other utilities or marketers. Wholesale revenue contracts include the performance obligation of physical electric power or natural gas. There are typically no added fixed or variable amounts on top of the established rate for power or natural gas and contracts always have a stated, fixed quantity of power or natural gas delivered. Transfer of control and recognition of revenue occurs at a point in time when the customer takes physical possession of electric power or natural gas. Non-core gas consists of natural gas supply in excess of natural gas used for generation, sold to third parties to mitigate the costs of firm transportation and storage capacity for its core natural gas customers. PSE reports non-core gas sold net of costs as PSE does not take control of the natural gas but is merely an agent within the market that connects a seller to a purchaser. Other Revenue |
Accounting for Derivative Instr
Accounting for Derivative Instruments and Hedging Activities | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Accounting for Derivative Instruments and Hedging Activities | Accounting for Derivative Instruments and Hedging Activities PSE employs various energy portfolio optimization strategies but is not in the business of assuming risk for the purpose of realizing speculative trading revenue. The nature of serving regulated electric customers with its portfolio of owned and contracted electric generation resources exposes PSE and its customers to some volumetric and commodity price risks within the sharing mechanism of the power cost adjustment (PCA). Therefore, wholesale market transactions and PSE's related hedging strategies are focused on reducing costs and risks where feasible, thus reducing volatility of costs in the portfolio. In order to manage its exposure to the variability in future cash flows for forecasted energy transactions, PSE utilizes a programmatic hedging strategy which extends out three years. PSE's hedging strategy includes a risk-responsive component for the core natural gas portfolio, which utilizes quantitative risk-based measures with defined objectives to balance both portfolio risk and hedge costs. PSE's energy risk portfolio management function monitors and manages these risks using analytical models and tools. In order to manage risks effectively, PSE enters into forward physical electric and natural gas purchase and sale agreements, fixed-for-floating swap contracts, and commodity call/put options. Currently, the Company does not apply cash flow hedge accounting and therefore records all mark-to-market gains or losses through earnings. The Company manages its interest rate risk through the issuance of mostly fixed-rate debt with varied maturities. The Company utilizes internal cash from operations, borrowings under its commercial paper program and its credit facilities to meet short-term funding needs. The Company may enter into swap instruments or other financial hedge instruments to manage the interest rate risk associated with these debts. The following table presents the volumes, fair values and classification of the Company's derivative instruments recorded on the balance sheets: Puget Energy and March 31, 2020 December 31, 2019 (Dollars in Thousands) Volumes Assets 1 Liabilities 2 Volumes Assets 1 Liabilities 2 Electric portfolio derivatives * $ 11,028 $ 57,140 * $ 19,933 $ 17,504 Natural gas derivatives (MMBtus) 3 292.1 million 7,596 14,075 315.5 million 11,375 8,617 Total derivative contracts $ 18,624 $ 71,215 $ 31,308 $ 26,121 Current $ 14,906 $ 41,709 $ 23,626 $ 13,428 Long-term 3,718 29,506 7,682 12,693 Total derivative contracts $ 18,624 $ 71,215 $ 31,308 $ 26,121 _______________ 1 Balance sheet classification: Current and Long-term Unrealized gain on derivative instruments. 2 Balance sheet classification: Current and Long-term Unrealized loss on derivative instruments. 3 All fair value adjustments on derivatives relating to the natural gas business have been deferred in accordance with ASC 980, “Regulated Operations,” due to the purchased gas adjustment (PGA) mechanism. The net derivative asset or liability and offsetting regulatory liability or asset are related to contracts used to economically hedge the cost of physical gas purchased to serve natural gas customers. * Electric portfolio derivatives consist of electric generation fuel of 230.8 million One Million British Thermal Units (MMBtu) and purchased electricity of 8.2 million Megawatt Hours (MWhs) at March 31, 2020, and 229.3 million MMBtus and 10.4 million MWhs at December 31, 2019. It is the Company's policy to record all derivative transactions on a gross basis at the contract level without offsetting assets or liabilities. The Company generally enters into transactions using the following master agreements: WSPP, Inc. (WSPP) agreements, which standardize physical power contracts; International Swaps and Derivatives Association (ISDA) agreements, which standardize financial natural gas and electric contracts; and North American Energy Standards Board (NAESB) agreements, which standardize physical natural gas contracts. The Company believes that such agreements reduce credit risk exposure because such agreements provide for the netting and offsetting of monthly payments as well as the right of set-off in the event of counterparty default. The set-off provision can be used as a final settlement of accounts which extinguishes the mutual debts owed between the parties in exchange for a new net amount. For further details regarding the fair value of derivative instruments, see Note 5, "Fair Value Measurements," to the consolidated financial statements included in Item 1 of this report. The following tables present the potential effect of netting arrangements, including rights of set-off associated with the Company's derivative assets and liabilities: Puget Energy and At March 31, 2020 Gross Amount Recognized in the Statement of Financial Position 1 Gross Amounts Offset in the Statement of Financial Position Net of Amounts Presented in the Statement of Financial Position Gross Amounts Not Offset in the Statement of Financial Position Commodity Contracts Cash Collateral Received/Posted Net Amount Assets: Energy derivative contracts $ 18,624 $ — $ 18,624 $ (16,598) $ — $ 2,026 Liabilities: Energy derivative contracts $ 71,215 $ — $ 71,215 $ (16,598) $ 2,000 $ 56,617 Puget Energy and At December 31, 2019 Gross Amount Recognized in the Statement of Financial Position 1 Gross Amounts Offset in the Statement of Financial Position Net of Amounts Presented in the Statement of Financial Position Gross Amounts Not Offset in the Statement of Financial Position (Dollars in Thousands) Commodity Contracts Cash Collateral Received/Posted Net Amount Assets: Energy derivative contracts $ 31,308 $ — $ 31,308 $ (14,922) $ — $ 16,386 Liabilities: Energy derivative contracts $ 26,121 $ — $ 26,121 $ (14,922) $ 2,000 $ 13,199 _______________ 1 All derivative contract deals are executed under ISDA, NAESB and WSPP master netting agreements with right of set-off. The following table presents the effect and classification of the realized and unrealized gains (losses) of the Company's derivatives recorded on the statements of income: Puget Energy and Three Months Ended (Dollars in Thousands) Classification 2020 2019 Gas for Power Derivatives: Unrealized Unrealized gain (loss) on derivative instruments, net $ (9,755) $ 14,961 Realized Electric generation fuel 1,296 13,328 Power Derivatives: Unrealized Unrealized gain (loss) on derivative instruments, net (38,786) 226 Realized Purchased electricity (5,935) 36,292 Total gain (loss) recognized in income on derivatives $ (53,180) $ 64,807 The Company is exposed to credit risk primarily through buying and selling electricity and natural gas to serve its customers. Credit risk is the potential loss resulting from a counterparty's non-performance under an agreement. The Company manages credit risk with policies and procedures for, among other things, counterparty credit analysis, exposure measurement, and exposure monitoring and mitigation. The Company monitors counterparties for significant swings in credit default swap rates, credit rating changes by external rating agencies, ownership changes or financial distress. Where deemed appropriate, the Company may request collateral or other security from its counterparties to mitigate potential credit default losses. Criteria employed in this decision include, among other things, the perceived creditworthiness of the counterparty and the expected credit exposure. It is possible that volatility in energy commodity prices could cause the Company to have material credit risk exposure with one or more counterparties. If such counterparties fail to perform their obligations under one or more agreements, the Company could suffer a material financial loss. However, as of March 31, 2020, approximately 97.3% of the Company's energy portfolio exposure, excluding normal purchase normal sale (NPNS) transactions, is with counterparties that are rated investment grade by rating agencies and 2.7% are either rated below investment grade or not rated by rating agencies. The Company assesses credit risk internally for counterparties that are not rated by the major rating agencies. The Company computes credit reserves at a master agreement level by counterparty. The Company considers external credit ratings and market factors in the determination of reserves, such as credit default swaps and bond spreads. The Company recognizes that external ratings may not always reflect how a market participant perceives a counterparty's risk of default. The Company uses both default factors published by Standard & Poor's and factors derived through analysis of market risk, which reflect the application of an industry standard recovery rate. The Company selects a default factor by counterparty at an aggregate master agreement level based on a weighted average default tenor for that counterparty's deals. The default tenor is determined by weighting the fair value and contract tenors for all deals for each counterparty to derive an average value. The default factor used is dependent upon whether the counterparty is in a net asset or a net liability position after applying the master agreement levels. The Company applies the counterparty's default factor to compute credit reserves for counterparties that are in a net asset position. The Company calculates a non-performance risk on its derivative liabilities by using its estimated incremental borrowing rate over the risk-free rate. Credit reserves are netted against the unrealized gain (loss) positions. The majority of the Company's derivative contracts are with financial institutions and other utilities operating within the Western Electricity Coordinating Council. PSE also transacts power futures contracts on the Intercontinental Exchange (ICE), and natural gas contracts on the ICE NGX exchange platform. Execution of contracts on ICE requires the daily posting of margin calls as collateral through a futures and clearing agent. As of March 31, 2020, PSE had cash posted as collateral of $18.5 million related to contracts executed on the ICE platform. Also, as of March 31, 2020, PSE had $6.2 million in a letter of credit posted as a condition of transacting on the ICE NGX platform. PSE did not trigger any collateral requirements with any of its counterparties nor were any of PSE's counterparties required to post collateral resulting from credit rating downgrades during the three months ended March 31, 2020. The following table presents the aggregate fair value of all derivative instruments with credit-risk-related contingent features that are in a liability position and the amount of additional collateral the Company could be required to post: Puget Energy and (Dollars in Thousands) At March 31, 2020 At December 31, 2019 Fair Value 1 Posted Contingent Fair Value 1 Posted Contingent Contingent Feature Liability Collateral Collateral Liability Collateral Collateral Credit rating 2 $ 30,427 $ — $ 30,427 $ 6,110 $ — $ 6,110 Requested credit for adequate assurance 6,107 — — 5,253 — — Forward value of contract 3 10,143 — N/A — 14,827 N/A Total $ 46,677 $ — $ 30,427 $ 11,363 $ 14,827 $ 6,110 _______________ 1 Represents the derivative fair value of contracts with contingent features for counterparties in net derivative liability positions. Excludes NPNS, accounts payable and accounts receivable. 2 Failure by PSE to maintain an investment grade credit rating from each of the major credit rating agencies provides counterparties a contractual right to demand collateral. 3 . Collateral requirements may vary, based on changes in the forward value of underlying transactions relative to contractually defined collateral thresholds. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements ASC 820 established a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy categorizes the inputs into three levels with the highest priority given to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority given to unobservable inputs (Level 3 measurement). The three levels of the fair value hierarchy are as follows: Level 1 - Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Level 1 primarily consists of financial instruments such as exchange-traded derivatives and listed equities. Equity securities that are also classified as cash equivalents are considered Level 1 if there are unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 - Pricing inputs are other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 2 includes those financial instruments that are valued using models or other valuation methodologies. Instruments in this category include non-exchange-traded derivatives such as over-the-counter forwards and options. Level 3 - Pricing inputs include significant inputs that have little or no observability as of the reporting date. These inputs may be used with internally developed methodologies that result in management's best estimate of fair value. Financial assets and liabilities measured at fair value are classified in their entirety in the appropriate fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The Company's assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy. The Company primarily determines fair value measurements classified as Level 2 or Level 3 using a combination of the income and market valuation approaches. The process of determining the fair values is the responsibility of the derivative accounting department which reports to the Controller and Principal Accounting Officer. Inputs used to estimate the fair value of forwards, swaps and options include market-price curves, contract terms and prices, credit-risk adjustments, and discount factors. Additionally, for options, the Black-Scholes option valuation model and implied market volatility curves are used. Inputs used to estimate fair value in industry-standard models are categorized as Level 2 inputs as substantially all assumptions and inputs are observable in active markets throughout the full term of the instruments. On a daily basis, the Company obtains quoted forward prices for the electric and natural gas markets from an independent external pricing service. The Company considers its electric and natural gas contracts as Level 2 derivative instruments as such contracts are commonly traded as over-the-counter forwards with indirectly observable price quotes. However, certain energy derivative instruments with maturity dates falling outside the range of observable price quotes are classified as Level 3 in the fair value hierarchy. Management's assessment is based on the trading activity in real-time and forward electric and natural gas markets. Each quarter, the Company confirms the validity of pricing-service quoted prices used to value Level 2 commodity contracts with the actual prices of commodity contracts entered into during the most recent quarter. Assets and Liabilities with Estimated Fair Value The carrying values of cash and cash equivalents, restricted cash, and short-term debt as reported on the balance sheet are reasonable estimates of their fair value due to the short-term nature of these instruments and are classified as Level 1 in the fair value hierarchy. The carrying value of other investments totaling $51.5 million at both March 31, 2020 and December 31, 2019, are included in "Other property and investments" on the balance sheet. These values are also reasonable estimates of their fair value and classified as Level 2 in the fair value hierarchy as they are valued based on market rates for similar transactions. The fair value of the long-term notes was estimated using the discounted cash flow method with the U.S. Treasury yields and the Company's credit spreads as inputs, interpolating to the maturity date of each issue. The carrying values and estimated fair values were as follows: Puget Energy At March 31, 2020 At December 31, 2019 (Dollars in Thousands) Level Carrying Fair Carrying Fair Liabilities: Long-term debt (fixed-rate), net of discount 1 2 $ 5,515,318 $ 6,930,219 $ 5,512,225 $ 7,004,316 Long-term debt (variable-rate) 2 415,500 415,500 408,100 408,100 Total liabilities $ 5,930,818 $ 7,345,719 $ 5,920,325 $ 7,412,416 Puget Sound Energy At March 31, 2020 At December 31, 2019 (Dollars in Thousands) Level Carrying Fair Carrying Fair Liabilities: Long-term debt (fixed-rate), net of discount 2 2 $ 4,336,612 $ 5,563,257 $ 4,336,142 $ 5,571,818 Total liabilities $ 4,336,612 $ 5,563,257 $ 4,336,142 $ 5,571,818 _______________ 1 The carrying value includes debt issuances costs of $23.3 million and $24.1 million for March 31, 2020 and December 31, 2019, respectively, which are not included in fair value. 2 The carrying value includes debt issuances costs of $24.0 million and $24.4 million for March 31, 2020 and December 31, 2019, respectively, which are not included in fair value. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table presents the Company's financial assets and liabilities by level, within the fair value hierarchy, that were accounted for at fair value on a recurring basis: Puget Energy and Fair Value Fair Value (Dollars in Thousands) Level 2 Level 3 Total Level 2 Level 3 Total Assets: Electric derivative instruments $ 10,525 $ 503 $ 11,028 $ 19,282 $ 651 $ 19,933 Natural gas derivative instruments 6,321 1,275 7,596 9,852 1,523 11,375 Total assets $ 16,846 $ 1,778 $ 18,624 $ 29,134 $ 2,174 $ 31,308 Liabilities: Electric derivative instruments $ 30,331 $ 26,809 $ 57,140 $ 13,474 $ 4,030 $ 17,504 Natural gas derivative instruments 13,892 183 14,075 8,376 241 8,617 Total liabilities $ 44,223 $ 26,992 $ 71,215 $ 21,850 $ 4,271 $ 26,121 The following table presents the Company's reconciliation of the changes in the fair value of Level 3 derivatives in the fair value hierarchy: Puget Energy and Three Months Ended (Dollars in Thousands) 2020 2019 Level 3 Roll-Forward Net Asset/(Liability) Electric Natural Gas Total Electric Natural Gas Total Balance at beginning of period $ (3,379) $ 1,282 $ (2,097) $ 1,362 $ 1,673 $ 3,035 Changes during period: Realized and unrealized energy derivatives: Included in earnings 1 (24,552) — (24,552) 12,325 — 12,325 Included in regulatory assets / liabilities — 323 323 — 1,897 1,897 Settlements 1,626 (513) 1,113 (13,483) (1,100) (14,583) Transferred into Level 3 — — — 4,391 (398) 3,993 Transferred out of Level 3 — — — 417 686 1,103 Balance at end of period $ (26,305) $ 1,092 $ (25,213) $ 5,012 $ 2,758 $ 7,770 _______________ 1. Income Statement locations: Unrealized (gain) loss on derivative instruments, net. Amounts include unrealized gains (losses) on derivatives still held in position as of the reporting date for electric derivatives of zero and $3.1 million for three months ended March 31, 2020 and 2019 , respectively. Realized gains and losses on energy derivatives for Level 3 recurring items are included in energy costs in the Company's consolidated statements of income under purchased electricity, electric generation fuel or purchased natural gas when settled. Unrealized gains and losses on energy derivatives for Level 3 recurring items are included in net unrealized (gain) loss on derivative instruments in the Company's consolidated statements of income. The Company does not use internally developed models to make adjustments to significant unobservable pricing inputs. The only significant unobservable input into the fair value measurement of the Company's Level 3 assets and liabilities is the forward price for electric and natural gas contracts. The weighted average price is calculated as the total market value divided by the total volume of the Company's Level 3 electric and gas commodity contracts, respectively, as of the reporting date. The following table presents the forward price ranges for the Company's Level 3 commodity contracts as of March 31, 2020: Puget Energy and Fair Value Range (Dollars in Thousands) Assets 1 Liabilities 1 Valuation Technique Unobservable Input Low High Weighted Average Electric $ 503 $ 26,809 Discounted cash flow Power prices (per MWh) $ 6.00 $ 38.45 $ 29.59 Natural gas $ 1,275 $ 183 Discounted cash flow Natural gas prices (per MMBtu) $ 1.34 $ 2.78 $ 1.85 _______________ 1 The valuation techniques, unobservable inputs and ranges are the same for asset and liability positions. The following table presents the forward price ranges for the Company's Level 3 commodity contracts as of December 31, 2019: Puget Energy and Fair Value Range (Dollars in Thousands) Assets 1 Liabilities 1 Valuation Technique Unobservable Input Low High Weighted Average Electric $ 651 $ 4,030 Discounted cash flow Power prices (per MWh) $ 9.00 $ 43.85 $ 33.99 Natural gas $ 1,523 $ 241 Discounted cash flow Natural gas prices (per MMBtu) $ 1.25 $ 3.18 $ 2.47 ___________ 1 The valuation techniques, unobservable inputs and ranges are the same for asset and liability positions. The significant unobservable inputs listed above would have a direct impact on the fair values of the above instruments if they were adjusted. Consequently, significant increases or decreases in the forward prices of electricity or natural gas in isolation would result in a significantly higher or lower fair value for Level 3 assets and liabilities. Generally, interrelationships exist between market prices of natural gas and power. As such, an increase in natural gas pricing would potentially have a similar impact on forward power markets. As of March 31, 2020, and December 31, 2019, a hypothetical 10.0% increase or decrease in market prices of natural gas and electricity would change the fair value of the Company's derivative portfolio, classified as Level 3 within the fair value hierarchy, by $5.1 million and $2.5 million, respectively. Long-Lived Assets Measured at Fair Value on a Nonrecurring Basis Puget Energy records the fair value of its intangible assets in accordance with ASC 360, “Property, Plant, and Equipment,” (ASC 360). The fair value assigned to the power contracts was determined using an income approach comparing the contract rate to the market rate for power over the remaining period of the contracts incorporating non-performance risk. Management also incorporated certain assumptions related to quantities and market presentation that it believes market participants would make in the valuation. The fair value of the power contracts is amortized as the contracts settle. ASC 360 requires long-lived assets to be tested for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. One such triggering event is a significant decrease in the forward market prices of power. As of March 31, 2020, Puget Energy completed valuation and impairment testing of its power purchase contracts classified as intangible assets. These intangible assets exist as a result of the merger in 2009, at which time the consolidated assets and liabilities were revalued in accordance with ASC 805, "Business Combinations". Differences between the fair market value and the carrying value of assets held as PSE were recorded at PE. The Rocky Reach contract was determined to be impaired due to a decrease in forward prices for this contract of 7.6% from December 31, 2019, causing an impairment of $52.6 million. While this impairment of the intangible asset held at PE is the result of a decline in forward prices and the corresponding valuation impact, the underlying power purchase contract is included within rates at PSE. The following table presents the impairment recorded to the Company's intangible asset contracts, with corresponding reductions to the regulatory liability: Puget Energy (Dollars in Thousands) Valuation Date Contract Name Carrying Value Fair Value Write Down March 31, 2020 Rocky Reach $ 147,168 $ 94,603 $ 52,565 The valuations were measured using a discounted cash flow, income-based valuation methodology. Significant inputs included forward electricity prices and power contract pricing which provided future net cash flow estimates classified as Level 3 within the fair value hierarchy. The unobservable input averages disclosed below represent the arithmetic average of the inputs and are not weighted by volume. A less significant input is the discount rate reflective of a market participant's cost of capital used in the valuation. The following table presents the significant unobservable inputs used in estimating the impaired long-term power purchase contracts' fair value: Puget Energy Valuation Date Unobservable Input Low High Average March 31, 2020 Power prices (per MWh) $ 10.23 $ 29.05 $ 20.88 Power contract costs per quarter (in thousands) 6,308 7,085 6,468 December 31, 2019 Power prices (per MWh) $ 11.75 $ 31.44 $ 22.53 Power contract costs per quarter (in thousands) $ 6,237 $ 7,087 $ 6,421 |
Retirement Benefits
Retirement Benefits | 3 Months Ended |
Mar. 31, 2020 | |
Subsidiaries [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | Retirement Benefits PSE has a defined benefit pension plan (Qualified Pension Benefits) covering a substantial majority of PSE employees. Pension benefits earned are a function of age, salary, years of service and, in the case of employees in the cash balance formula plan, the applicable annual interest crediting rates. Starting with January 1, 2014, all the United Association of Plumbers and Pipefitters (UA) represented employees will receive annual pay contributions of 4.0% of eligible pay each year in the cash balance formula plan of the defined benefit pension. Starting January 1, 2014, for non-represented employees, and December 12, 2014, for employees represented by the International Brotherhood of Electrical Workers Union (IBEW), participants will receive annual employer contributions of 4.0% of eligible pay each year in the cash balance formula of the defined benefit pension or 401k plan account. Those employees receiving contributions in the cash balance formula plan also receive interest credits, which are at least 1.0% per quarter. When an employee with a vested cash balance formula benefit leaves PSE, they will have annuity and lump sum options for distribution. PSE also has a non-qualified Supplemental Executive Retirement Plan (SERP) for certain key senior management employees that closed to new participants in 2019. PSE has an officer restoration benefit for new officers who join PSE or are promoted beginning in 2019, such that company contributions under PSE’s applicable tax-qualified plan, which otherwise would have been earned if not for IRS limitations, are credited to an account with the Deferred Compensation Plan. In addition to providing pension benefits, PSE provides legacy group health care and life insurance benefits (Other Benefits) for certain retired employees. These benefits are provided principally through an insurance company. The insurance premiums, paid primarily by retirees, are based on the benefits provided during the prior year. On June 11, 2019, the Welfare Benefits Committee approved the termination of the Plan effective December 31, 2019, and the creation of a Retiree Health Reimbursement Account (HRA) Plan effective January 1, 2020. No eligible individual may become a participant or covered dependent in the Plan on or after January 1, 2020, and no benefits will be payable under insurance contracts or the Plan on or after January 1, 2020. Effective January 1, 2020, assets in the 401(h) account will be allocated to the Retiree HRA instead of the Plan to cover the Company's portion of premiums for health benefits for retiree and their beneficiaries. Puget Energy's retirement plans were remeasured as a result of the merger in 2009, which represents the difference between Puget Energy and PSE's retirement plans. In March 2017, the FASB issued ASU 2017-07, requiring that an employer report the service cost component in the same line items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost (which include interest costs, expected return on plan assets, amortization of prior service cost or credits and actuarial gains and losses) are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. Pursuant to the standard, the Company has retrospectively included in the consolidated statements of income: (i) the components of service cost within utility operations and maintenance for PSE and within non-utility expense and other for Puget Energy, and (ii) all non-service cost components in other income. The following tables summarize the Company’s net periodic benefit cost for the three months ended March 31, 2020 and 2019: Puget Energy Qualified SERP Other Three Months Ended March 31, (Dollars in Thousands) 2020 2019 2020 2019 2020 2019 Components of net periodic benefit cost: Service cost $ 5,997 $ 5,287 $ 228 $ 256 $ 49 $ 16 Interest cost 6,298 7,216 378 578 91 112 Expected return on plan assets (12,502) (12,624) — — (97) (97) Amortization of prior service cost (495) (495) 87 83 — — Amortization of net loss (gain) 1,981 251 586 341 (22) (63) Net periodic benefit cost $ 1,279 $ (365) $ 1,279 $ 1,258 $ 21 $ (32) Puget Sound Energy Qualified SERP Other Three Months Ended March 31, (Dollars in Thousands) 2020 2019 2020 2019 2020 2019 Components of net periodic benefit cost: Service cost $ 5,997 $ 5,287 $ 228 $ 256 $ 49 $ 16 Interest cost 6,298 7,216 378 578 91 112 Expected return on plan assets (12,504) (12,628) — — (97) (98) Amortization of prior service cost (393) (393) 87 83 — — Amortization of net loss (gain) 4,656 3,165 659 433 (36) (109) Net periodic benefit cost $ 4,054 $ 2,647 $ 1,352 $ 1,350 $ 7 $ (79) The following table summarizes the Company’s change in benefit obligation for the periods ended March 31, 2020 and December 31, 2019: Puget Energy and Qualified SERP Other Three Months Ended Year Ended Three Months Ended Year Ended Three Months Ended Year Ended (Dollars in Thousands) March 31, December 31, March 31, December 31, March 31, December 31, Change in benefit obligation: Benefit obligation at beginning of period $ 774,305 $ 677,643 $ 63,000 $ 55,708 $ 11,627 $ 10,636 Amendments — — — — — 9,049 Service cost 5,997 22,656 228 1,023 49 61 Interest cost 6,298 28,913 378 2,314 91 410 Curtailment Loss / (Gain) — — — — — (7,486) Actuarial loss (gain) — 84,272 (478) 6,756 — (287) Benefits paid (11,250) (36,740) (13,649) (2,801) (251) (982) Medicare part D subsidy received — — — — — 226 Administrative Expense — (2,439) — — — — Benefit obligation at end of period $ 775,350 $ 774,305 $ 49,479 $ 63,000 $ 11,516 $ 11,627 The aggregate expected contributions by the Company to fund the qualified pension plan, SERP and the other postretirement plans for the year ending December 31, 2020, are expected to be at least $18.0 million, $26.1 million and $0.3 million, respectively. During the three months ended March 31, 2020, the Company contributed $13.6 million to fund the SERP. During the three months ended March 31, 2019, the Company contributed $0.5 million to fund the SERP. The Company contributed an immaterial amount to fund the other postretirement plans. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Colstrip PSE has a 50% ownership interest in Colstrip Units 1 and 2 and a 25% interest in each of Colstrip Units 3 and 4. In March 2013, the Sierra Club and the Montana Environmental Information Center filed a Clean Air Act citizen suit against all Colstrip owners in the U.S. District Court, District of Montana. In July 2016, PSE reached a settlement with the Sierra Club to dismiss all of the Clean Air Act allegations against the Colstrip Generating Station, which was approved by the court in September 2016. As part of the settlement that was signed by all Colstrip owners, Colstrip 1 and 2 owners, PSE and Talen Energy Corporation (Talen), agreed to retire the two oldest units (Units 1 and 2) at Colstrip in eastern Montana no later than July 1, 2022. Depreciation rates were updated in the GRC effective December 19, 2017, where PSE's depreciation increased for Colstrip Units 1 and 2 to recover plant costs to the expected shutdown date. Additionally, PSE has accelerated the depreciation of Colstrip Units 3 and 4, per the terms of the GRC settlement, to December 31, 2027. The GRC also repurposed PTCs and hydro-related treasury grants to recover unrecovered plant costs and to fund and recover decommissioning and remediation costs for Colstrip Units 1 through 4. Consistent with a June 2019 announcement, Talen permanently shut down Units 1 and 2 at the end of the year due to operational losses associated with the Units. Colstrip Units 1 and 2 were retired effective December 31, 2019. The Washington Clean Energy Transition Act requires the Washington Commission to provide recovery of the investment, decommissioning, and remediation costs associated with the facilities that are not recovered through the repurposed PTC's and hydro-related treasury grants. The full scope of decommissioning activities and costs may vary from the estimates that are available at this time. On December 10, 2019, PSE announced its intention to sell its interest in Colstrip Unit 4 to NorthWestern Energy for $1. Under the agreement with NorthWestern Energy, PSE would retain its obligation to fund 25% of the environmental remediation and decommissioning costs associated with Unit 4 during PSE's operation. The agreement is subject to approval by the Washington Commission and the Montana Public Service Commission. Additionally, PSE has agreed to enter into a power purchase agreement with NorthWestern Energy for 90 MW through 2025 to facilitate the transition, and sell a portion of its dedicated Colstrip transmission system, conditioned upon regulatory approval. Other Colstrip owners and other external parties have intervened in the pending regulatory review of this transaction, and one Colstrip owner has exercised its contractual right to purchase its pro rata share of the interest to be sold by PSE. For accounting purposes, management has evaluated the applicable held for sale criteria as of December 31, 2019, and determined that these criteria were not met. As such, Colstrip Unit 4 is classified as Electric Utility Plant on the balance sheet, see Note 6, "Utility Plant," to the consolidated financial statements in the Company's most recent Annual Report on Form 10-K for the year ended December 31, 2019. Other Commitments and Contingencies In addition to the contractual obligations and consolidated commercial commitments disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2019, during the three months ended March 31, 2020, the Company entered into new Electric Portfolio and Electric Wholesale Market Transaction contracts with estimated payment obligations totaling $473.7 million through 2037. For further information, see Note 16, "Commitments and Contingencies" to the consolidated financial statements included in Item 8 of the Company's Form 10-K for the period ended December 31, 2019. |
Leases (Notes)
Leases (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases PSE has operating leases for buildings for corporate offices and operations, real estate for operating facilities and the Tacoma LNG facility, land for our wind farms, and vehicles for PSE’s fleet. The finance leases are for office printers. The leases have remaining lease terms of less than a year to 50 years. PSE's ROU assets and lease liabilities include options to extend leases when it is reasonably certain that PSE will exercise that option. During the fourth quarter of 2019, PSE became reasonably certain to exercise an option to extend its lease at the Port of Tacoma for an additional 25 years as a result of the approval of the Notice of Construction permit for the Tacoma LNG facility. This remeasurement resulted in an increase of the Operating lease right-of-use asset and Operating lease liabilities of $14.7 million. The components of lease cost were as follows: Puget Energy and Three Months Ended (Dollars in Thousands) 2020 2019 Finance lease cost: Amortization of right-of-use asset $ 152 $ 158 Interest on lease liabilities 10 9 Total finance lease cost $ 162 $ 167 Operating lease cost 1 $ 5,480 $ 4,784 _______________ 1 Includes $0.3 million allocated to PLNG at PE related to the Port of Tacoma lease for each of the three months ended March 31, 2020 and 2019, respectively. Supplemental cash flow information related to leases was as follows: Puget Energy and Three Months Ended (Dollars in Thousands) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow for operating leases $ 3,773 $ 4,346 Investing cash flow for operating leases 1 1,707 438 Operating cash flow for finance leases 10 9 Financing cash flow for finance leases 152 158 _______________ 1 Includes $0.3 million allocated to PLNG at PE related to the Port of Tacoma lease for each of the three months ended March 31, 2020 and 2019, respectively. Supplemental balance sheet information related to leases was as follows: Puget Sound Energy (Dollars in Thousands) March 31, December 31, Operating Leases 2020 2019 Operating lease right-of-use asset $ 180,188 $ 183,048 Operating leases liabilities current 16,183 15,862 Operating lease liabilities long-term 170,638 174,327 Total Operating lease liabilities: $ 186,821 $ 190,189 Finance Leases Common Plant $ 1,337 $ 1,488 Other current liabilities 657 669 Other deferred credits 656 811 Total finance lease liabilities $ 1,313 $ 1,480 Weighted Average Remaining Lease Term Operating leases 19.12 Years 19.24 Years Finance leases 2.48 Years 2.76 Years Weighted Average Discount Rate Operating leases 3.59 % 3.59 % Finance leases 2.98 % 2.98 % The following tables summarize the Company’s estimated future minimum lease payments as of March 31, 2020, and December 31, 2019, respectively: Maturities of lease liabilities Future Minimum Lease Payments (Dollars in Thousands) At March 31, Operating Leases Finance Leases 2020 (remaining nine months) $ 15,649 $ 481 2021 22,762 508 2022 22,095 279 2023 21,657 98 2024 20,932 — Thereafter 160,676 — Total lease payments $ 263,771 $ 1,366 Less imputed interest (76,950) (53) Total $ 186,821 $ 1,313 Maturities of lease liabilities Future Minimum Lease (Dollars in Thousands) At December 31, Operating Leases Finance Leases 2020 $ 22,500 $ 643 2021 22,527 508 2022 21,856 279 2023 21,415 98 2024 20,690 — Thereafter 160,410 — Total lease payments $ 269,398 $ 1,528 Less imputed interest (79,209) (48) Total net present value $ 190,189 $ 1,480 |
Leases | Leases PSE has operating leases for buildings for corporate offices and operations, real estate for operating facilities and the Tacoma LNG facility, land for our wind farms, and vehicles for PSE’s fleet. The finance leases are for office printers. The leases have remaining lease terms of less than a year to 50 years. PSE's ROU assets and lease liabilities include options to extend leases when it is reasonably certain that PSE will exercise that option. During the fourth quarter of 2019, PSE became reasonably certain to exercise an option to extend its lease at the Port of Tacoma for an additional 25 years as a result of the approval of the Notice of Construction permit for the Tacoma LNG facility. This remeasurement resulted in an increase of the Operating lease right-of-use asset and Operating lease liabilities of $14.7 million. The components of lease cost were as follows: Puget Energy and Three Months Ended (Dollars in Thousands) 2020 2019 Finance lease cost: Amortization of right-of-use asset $ 152 $ 158 Interest on lease liabilities 10 9 Total finance lease cost $ 162 $ 167 Operating lease cost 1 $ 5,480 $ 4,784 _______________ 1 Includes $0.3 million allocated to PLNG at PE related to the Port of Tacoma lease for each of the three months ended March 31, 2020 and 2019, respectively. Supplemental cash flow information related to leases was as follows: Puget Energy and Three Months Ended (Dollars in Thousands) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow for operating leases $ 3,773 $ 4,346 Investing cash flow for operating leases 1 1,707 438 Operating cash flow for finance leases 10 9 Financing cash flow for finance leases 152 158 _______________ 1 Includes $0.3 million allocated to PLNG at PE related to the Port of Tacoma lease for each of the three months ended March 31, 2020 and 2019, respectively. Supplemental balance sheet information related to leases was as follows: Puget Sound Energy (Dollars in Thousands) March 31, December 31, Operating Leases 2020 2019 Operating lease right-of-use asset $ 180,188 $ 183,048 Operating leases liabilities current 16,183 15,862 Operating lease liabilities long-term 170,638 174,327 Total Operating lease liabilities: $ 186,821 $ 190,189 Finance Leases Common Plant $ 1,337 $ 1,488 Other current liabilities 657 669 Other deferred credits 656 811 Total finance lease liabilities $ 1,313 $ 1,480 Weighted Average Remaining Lease Term Operating leases 19.12 Years 19.24 Years Finance leases 2.48 Years 2.76 Years Weighted Average Discount Rate Operating leases 3.59 % 3.59 % Finance leases 2.98 % 2.98 % The following tables summarize the Company’s estimated future minimum lease payments as of March 31, 2020, and December 31, 2019, respectively: Maturities of lease liabilities Future Minimum Lease Payments (Dollars in Thousands) At March 31, Operating Leases Finance Leases 2020 (remaining nine months) $ 15,649 $ 481 2021 22,762 508 2022 22,095 279 2023 21,657 98 2024 20,932 — Thereafter 160,676 — Total lease payments $ 263,771 $ 1,366 Less imputed interest (76,950) (53) Total $ 186,821 $ 1,313 Maturities of lease liabilities Future Minimum Lease (Dollars in Thousands) At December 31, Operating Leases Finance Leases 2020 $ 22,500 $ 643 2021 22,527 508 2022 21,856 279 2023 21,415 98 2024 20,690 — Thereafter 160,410 — Total lease payments $ 269,398 $ 1,528 Less imputed interest (79,209) (48) Total net present value $ 190,189 $ 1,480 |
Other
Other | 3 Months Ended |
Mar. 31, 2020 | |
Other [Abstract] | |
Other | Other Long-Term Debt The Company had no new long-term debt activities in the three months ended March 31, 2020. For further information, see Note 7, "Long-Term Debt" and Note 8, "Liquidity Facilities and Other Financing Arrangements" in the Company's most recent Annual Report on Form 10K for the year ended December 31, 2019. |
Short-term Debt | Short-Term Debt During the three months ended March 31, 2020, commercial paper markets were significantly impacted for a period of time due to COVID-19, during which time the Company drew short term funding from its credit facility. As of March 31, 2020, $60.0 million was drawn under PSE's credit facility and $16.0 million was outstanding under the commercial paper program at PSE. For further information, see Note 8, "Liquidity Facilities and Other Financing Arrangements" in the Company's most recent Annual Report on Form 10K for the year ended December 31, 2019. |
Accounting Policies (Tables)
Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Accounts Receivable, Allowance for Credit Loss | The following table presents the activity in the allowance for credit losses for accounts receivable for the quarter ended March 31, 2020: March 31, 2020 Allowance for credit losses: Beginning balance $ 8,294 Provision for credit loss expense 4,894 Receivables charged-off (3,374) Total ending allowance balance $ 9,814 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents disaggregated revenue from contracts with customers, and other revenue by major source: Puget Energy and (Dollars in Thousands) Three Months Ended Revenue from contracts with customers: 2020 2019 Electric retail $ 607,693 $ 637,189 Natural gas retail 365,637 322,560 Other 43,774 135,696 Total revenue from contracts with customers 1,017,104 1,095,445 Alternative revenue programs 1,150 (25,231) Other non-customer revenue 27,876 44,625 Total operating revenue $ 1,046,130 $ 1,114,839 |
Accounting for Derivative Ins_2
Accounting for Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative [Line Items] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table presents the volumes, fair values and classification of the Company's derivative instruments recorded on the balance sheets: Puget Energy and March 31, 2020 December 31, 2019 (Dollars in Thousands) Volumes Assets 1 Liabilities 2 Volumes Assets 1 Liabilities 2 Electric portfolio derivatives * $ 11,028 $ 57,140 * $ 19,933 $ 17,504 Natural gas derivatives (MMBtus) 3 292.1 million 7,596 14,075 315.5 million 11,375 8,617 Total derivative contracts $ 18,624 $ 71,215 $ 31,308 $ 26,121 Current $ 14,906 $ 41,709 $ 23,626 $ 13,428 Long-term 3,718 29,506 7,682 12,693 Total derivative contracts $ 18,624 $ 71,215 $ 31,308 $ 26,121 _______________ 1 Balance sheet classification: Current and Long-term Unrealized gain on derivative instruments. 2 Balance sheet classification: Current and Long-term Unrealized loss on derivative instruments. 3 All fair value adjustments on derivatives relating to the natural gas business have been deferred in accordance with ASC 980, “Regulated Operations,” due to the purchased gas adjustment (PGA) mechanism. The net derivative asset or liability and offsetting regulatory liability or asset are related to contracts used to economically hedge the cost of physical gas purchased to serve natural gas customers. |
Offsetting Assets and Liabilities | The following tables present the potential effect of netting arrangements, including rights of set-off associated with the Company's derivative assets and liabilities: Puget Energy and At March 31, 2020 Gross Amount Recognized in the Statement of Financial Position 1 Gross Amounts Offset in the Statement of Financial Position Net of Amounts Presented in the Statement of Financial Position Gross Amounts Not Offset in the Statement of Financial Position Commodity Contracts Cash Collateral Received/Posted Net Amount Assets: Energy derivative contracts $ 18,624 $ — $ 18,624 $ (16,598) $ — $ 2,026 Liabilities: Energy derivative contracts $ 71,215 $ — $ 71,215 $ (16,598) $ 2,000 $ 56,617 Puget Energy and At December 31, 2019 Gross Amount Recognized in the Statement of Financial Position 1 Gross Amounts Offset in the Statement of Financial Position Net of Amounts Presented in the Statement of Financial Position Gross Amounts Not Offset in the Statement of Financial Position (Dollars in Thousands) Commodity Contracts Cash Collateral Received/Posted Net Amount Assets: Energy derivative contracts $ 31,308 $ — $ 31,308 $ (14,922) $ — $ 16,386 Liabilities: Energy derivative contracts $ 26,121 $ — $ 26,121 $ (14,922) $ 2,000 $ 13,199 _______________ 1 All derivative contract deals are executed under ISDA, NAESB and WSPP master netting agreements with right of set-off. |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following table presents the effect and classification of the realized and unrealized gains (losses) of the Company's derivatives recorded on the statements of income: Puget Energy and Three Months Ended (Dollars in Thousands) Classification 2020 2019 Gas for Power Derivatives: Unrealized Unrealized gain (loss) on derivative instruments, net $ (9,755) $ 14,961 Realized Electric generation fuel 1,296 13,328 Power Derivatives: Unrealized Unrealized gain (loss) on derivative instruments, net (38,786) 226 Realized Purchased electricity (5,935) 36,292 Total gain (loss) recognized in income on derivatives $ (53,180) $ 64,807 |
Schedule of Credit Risk Related Contingent Features | The following table presents the aggregate fair value of all derivative instruments with credit-risk-related contingent features that are in a liability position and the amount of additional collateral the Company could be required to post: Puget Energy and (Dollars in Thousands) At March 31, 2020 At December 31, 2019 Fair Value 1 Posted Contingent Fair Value 1 Posted Contingent Contingent Feature Liability Collateral Collateral Liability Collateral Collateral Credit rating 2 $ 30,427 $ — $ 30,427 $ 6,110 $ — $ 6,110 Requested credit for adequate assurance 6,107 — — 5,253 — — Forward value of contract 3 10,143 — N/A — 14,827 N/A Total $ 46,677 $ — $ 30,427 $ 11,363 $ 14,827 $ 6,110 _______________ 1 Represents the derivative fair value of contracts with contingent features for counterparties in net derivative liability positions. Excludes NPNS, accounts payable and accounts receivable. 2 Failure by PSE to maintain an investment grade credit rating from each of the major credit rating agencies provides counterparties a contractual right to demand collateral. 3 . Collateral requirements may vary, based on changes in the forward value of underlying transactions relative to contractually defined collateral thresholds. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Inputs, Liabilities, Quantitative Information | The fair value of the long-term notes was estimated using the discounted cash flow method with the U.S. Treasury yields and the Company's credit spreads as inputs, interpolating to the maturity date of each issue. The carrying values and estimated fair values were as follows: Puget Energy At March 31, 2020 At December 31, 2019 (Dollars in Thousands) Level Carrying Fair Carrying Fair Liabilities: Long-term debt (fixed-rate), net of discount 1 2 $ 5,515,318 $ 6,930,219 $ 5,512,225 $ 7,004,316 Long-term debt (variable-rate) 2 415,500 415,500 408,100 408,100 Total liabilities $ 5,930,818 $ 7,345,719 $ 5,920,325 $ 7,412,416 Puget Sound Energy At March 31, 2020 At December 31, 2019 (Dollars in Thousands) Level Carrying Fair Carrying Fair Liabilities: Long-term debt (fixed-rate), net of discount 2 2 $ 4,336,612 $ 5,563,257 $ 4,336,142 $ 5,571,818 Total liabilities $ 4,336,612 $ 5,563,257 $ 4,336,142 $ 5,571,818 _______________ 1 The carrying value includes debt issuances costs of $23.3 million and $24.1 million for March 31, 2020 and December 31, 2019, respectively, which are not included in fair value. 2 The carrying value includes debt issuances costs of $24.0 million and $24.4 million for March 31, 2020 and December 31, 2019, respectively, which are not included in fair value. |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table presents the Company's financial assets and liabilities by level, within the fair value hierarchy, that were accounted for at fair value on a recurring basis: Puget Energy and Fair Value Fair Value (Dollars in Thousands) Level 2 Level 3 Total Level 2 Level 3 Total Assets: Electric derivative instruments $ 10,525 $ 503 $ 11,028 $ 19,282 $ 651 $ 19,933 Natural gas derivative instruments 6,321 1,275 7,596 9,852 1,523 11,375 Total assets $ 16,846 $ 1,778 $ 18,624 $ 29,134 $ 2,174 $ 31,308 Liabilities: Electric derivative instruments $ 30,331 $ 26,809 $ 57,140 $ 13,474 $ 4,030 $ 17,504 Natural gas derivative instruments 13,892 183 14,075 8,376 241 8,617 Total liabilities $ 44,223 $ 26,992 $ 71,215 $ 21,850 $ 4,271 $ 26,121 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following table presents the Company's reconciliation of the changes in the fair value of Level 3 derivatives in the fair value hierarchy: Puget Energy and Three Months Ended (Dollars in Thousands) 2020 2019 Level 3 Roll-Forward Net Asset/(Liability) Electric Natural Gas Total Electric Natural Gas Total Balance at beginning of period $ (3,379) $ 1,282 $ (2,097) $ 1,362 $ 1,673 $ 3,035 Changes during period: Realized and unrealized energy derivatives: Included in earnings 1 (24,552) — (24,552) 12,325 — 12,325 Included in regulatory assets / liabilities — 323 323 — 1,897 1,897 Settlements 1,626 (513) 1,113 (13,483) (1,100) (14,583) Transferred into Level 3 — — — 4,391 (398) 3,993 Transferred out of Level 3 — — — 417 686 1,103 Balance at end of period $ (26,305) $ 1,092 $ (25,213) $ 5,012 $ 2,758 $ 7,770 _______________ 1. Income Statement locations: Unrealized (gain) loss on derivative instruments, net. Amounts include unrealized gains (losses) on derivatives still held in position as of the reporting date for electric derivatives of zero and $3.1 million for three months ended March 31, 2020 and 2019 |
Fair Value Inputs, Assets and Liabilities, Quantitative Information | The following table presents the forward price ranges for the Company's Level 3 commodity contracts as of March 31, 2020: Puget Energy and Fair Value Range (Dollars in Thousands) Assets 1 Liabilities 1 Valuation Technique Unobservable Input Low High Weighted Average Electric $ 503 $ 26,809 Discounted cash flow Power prices (per MWh) $ 6.00 $ 38.45 $ 29.59 Natural gas $ 1,275 $ 183 Discounted cash flow Natural gas prices (per MMBtu) $ 1.34 $ 2.78 $ 1.85 _______________ 1 The valuation techniques, unobservable inputs and ranges are the same for asset and liability positions. The following table presents the forward price ranges for the Company's Level 3 commodity contracts as of December 31, 2019: Puget Energy and Fair Value Range (Dollars in Thousands) Assets 1 Liabilities 1 Valuation Technique Unobservable Input Low High Weighted Average Electric $ 651 $ 4,030 Discounted cash flow Power prices (per MWh) $ 9.00 $ 43.85 $ 33.99 Natural gas $ 1,523 $ 241 Discounted cash flow Natural gas prices (per MMBtu) $ 1.25 $ 3.18 $ 2.47 ___________ 1 The valuation techniques, unobservable inputs and ranges are the same for asset and liability positions. |
Details of Impairment of Long-Lived Assets Held and Used by Asset | The following table presents the impairment recorded to the Company's intangible asset contracts, with corresponding reductions to the regulatory liability: Puget Energy (Dollars in Thousands) Valuation Date Contract Name Carrying Value Fair Value Write Down March 31, 2020 Rocky Reach $ 147,168 $ 94,603 $ 52,565 |
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets | The following table presents the significant unobservable inputs used in estimating the impaired long-term power purchase contracts' fair value: Puget Energy Valuation Date Unobservable Input Low High Average March 31, 2020 Power prices (per MWh) $ 10.23 $ 29.05 $ 20.88 Power contract costs per quarter (in thousands) 6,308 7,085 6,468 December 31, 2019 Power prices (per MWh) $ 11.75 $ 31.44 $ 22.53 Power contract costs per quarter (in thousands) $ 6,237 $ 7,087 $ 6,421 |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | The following tables summarize the Company’s net periodic benefit cost for the three months ended March 31, 2020 and 2019: Puget Energy Qualified SERP Other Three Months Ended March 31, (Dollars in Thousands) 2020 2019 2020 2019 2020 2019 Components of net periodic benefit cost: Service cost $ 5,997 $ 5,287 $ 228 $ 256 $ 49 $ 16 Interest cost 6,298 7,216 378 578 91 112 Expected return on plan assets (12,502) (12,624) — — (97) (97) Amortization of prior service cost (495) (495) 87 83 — — Amortization of net loss (gain) 1,981 251 586 341 (22) (63) Net periodic benefit cost $ 1,279 $ (365) $ 1,279 $ 1,258 $ 21 $ (32) Puget Sound Energy Qualified SERP Other Three Months Ended March 31, (Dollars in Thousands) 2020 2019 2020 2019 2020 2019 Components of net periodic benefit cost: Service cost $ 5,997 $ 5,287 $ 228 $ 256 $ 49 $ 16 Interest cost 6,298 7,216 378 578 91 112 Expected return on plan assets (12,504) (12,628) — — (97) (98) Amortization of prior service cost (393) (393) 87 83 — — Amortization of net loss (gain) 4,656 3,165 659 433 (36) (109) Net periodic benefit cost $ 4,054 $ 2,647 $ 1,352 $ 1,350 $ 7 $ (79) |
Schedule of Changes in Projected Benefit Obligations | The following table summarizes the Company’s change in benefit obligation for the periods ended March 31, 2020 and December 31, 2019: Puget Energy and Qualified SERP Other Three Months Ended Year Ended Three Months Ended Year Ended Three Months Ended Year Ended (Dollars in Thousands) March 31, December 31, March 31, December 31, March 31, December 31, Change in benefit obligation: Benefit obligation at beginning of period $ 774,305 $ 677,643 $ 63,000 $ 55,708 $ 11,627 $ 10,636 Amendments — — — — — 9,049 Service cost 5,997 22,656 228 1,023 49 61 Interest cost 6,298 28,913 378 2,314 91 410 Curtailment Loss / (Gain) — — — — — (7,486) Actuarial loss (gain) — 84,272 (478) 6,756 — (287) Benefits paid (11,250) (36,740) (13,649) (2,801) (251) (982) Medicare part D subsidy received — — — — — 226 Administrative Expense — (2,439) — — — — Benefit obligation at end of period $ 775,350 $ 774,305 $ 49,479 $ 63,000 $ 11,516 $ 11,627 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Schedule of lease cost | The components of lease cost were as follows: Puget Energy and Three Months Ended (Dollars in Thousands) 2020 2019 Finance lease cost: Amortization of right-of-use asset $ 152 $ 158 Interest on lease liabilities 10 9 Total finance lease cost $ 162 $ 167 Operating lease cost 1 $ 5,480 $ 4,784 _______________ 1 Includes $0.3 million allocated to PLNG at PE related to the Port of Tacoma lease for each of the three months ended March 31, 2020 and 2019, respectively. Supplemental cash flow information related to leases was as follows: Puget Energy and Three Months Ended (Dollars in Thousands) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow for operating leases $ 3,773 $ 4,346 Investing cash flow for operating leases 1 1,707 438 Operating cash flow for finance leases 10 9 Financing cash flow for finance leases 152 158 _______________ 1 Includes $0.3 million allocated to PLNG at PE related to the Port of Tacoma lease for each of the three months ended March 31, 2020 and 2019, respectively. |
Schedule of lease assets and liabilities | Supplemental balance sheet information related to leases was as follows: Puget Sound Energy (Dollars in Thousands) March 31, December 31, Operating Leases 2020 2019 Operating lease right-of-use asset $ 180,188 $ 183,048 Operating leases liabilities current 16,183 15,862 Operating lease liabilities long-term 170,638 174,327 Total Operating lease liabilities: $ 186,821 $ 190,189 Finance Leases Common Plant $ 1,337 $ 1,488 Other current liabilities 657 669 Other deferred credits 656 811 Total finance lease liabilities $ 1,313 $ 1,480 Weighted Average Remaining Lease Term Operating leases 19.12 Years 19.24 Years Finance leases 2.48 Years 2.76 Years Weighted Average Discount Rate Operating leases 3.59 % 3.59 % Finance leases 2.98 % 2.98 % |
Schedule of maturity of operating lease liability | The following tables summarize the Company’s estimated future minimum lease payments as of March 31, 2020, and December 31, 2019, respectively: Maturities of lease liabilities Future Minimum Lease Payments (Dollars in Thousands) At March 31, Operating Leases Finance Leases 2020 (remaining nine months) $ 15,649 $ 481 2021 22,762 508 2022 22,095 279 2023 21,657 98 2024 20,932 — Thereafter 160,676 — Total lease payments $ 263,771 $ 1,366 Less imputed interest (76,950) (53) Total $ 186,821 $ 1,313 |
Schedule of maturity of finance lease liability | The following tables summarize the Company’s estimated future minimum lease payments as of March 31, 2020, and December 31, 2019, respectively: Maturities of lease liabilities Future Minimum Lease Payments (Dollars in Thousands) At March 31, Operating Leases Finance Leases 2020 (remaining nine months) $ 15,649 $ 481 2021 22,762 508 2022 22,095 279 2023 21,657 98 2024 20,932 — Thereafter 160,676 — Total lease payments $ 263,771 $ 1,366 Less imputed interest (76,950) (53) Total $ 186,821 $ 1,313 |
Schedule of future minimum lease payments | Maturities of lease liabilities Future Minimum Lease (Dollars in Thousands) At December 31, Operating Leases Finance Leases 2020 $ 22,500 $ 643 2021 22,527 508 2022 21,856 279 2023 21,415 98 2024 20,690 — Thereafter 160,410 — Total lease payments $ 269,398 $ 1,528 Less imputed interest (79,209) (48) Total net present value $ 190,189 $ 1,480 |
Schedule of future minimum lease payments | Maturities of lease liabilities Future Minimum Lease (Dollars in Thousands) At December 31, Operating Leases Finance Leases 2020 $ 22,500 $ 643 2021 22,527 508 2022 21,856 279 2023 21,415 98 2024 20,690 — Thereafter 160,410 — Total lease payments $ 269,398 $ 1,528 Less imputed interest (79,209) (48) Total net present value $ 190,189 $ 1,480 |
Summary of Consolidation and _2
Summary of Consolidation and Significant Accounting Policy (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020USD ($)mi² | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | |
Summary of Consolidation Policy | |||
Allowance for Credit Losses, Beginning Balance | $ 8,294 | ||
Provision for Credit Loss | $ 4,894 | ||
Receivables Charged-Off | (3,374) | ||
Allowance for Credit Loss, Ending Balance | $ 9,814 | ||
Subsidiaries [Member] | |||
Summary of Consolidation Policy | |||
Area of Service Territory (in sqmi) | mi² | 6,000 | ||
Subsidiaries [Member] | Tacoma LNG [Member] | |||
Summary of Consolidation Policy | |||
Jointly Owned Non-Utility Plant Share | 43.00% | ||
Construction in Progress, Gross | $ 173,500 | $ 162,800 | |
Puget LNG [Member] | |||
Summary of Consolidation Policy | |||
Jointly Owned Non-Utility Plant Share | 57.00% | ||
Construction in Progress, Gross | $ 198,000 | 199,900 | |
Puget LNG [Member] | |||
Summary of Consolidation Policy | |||
Operating Costs and Expenses | $ 300 | $ 300 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | $ 1,017,104 | $ 1,095,445 |
Regulated Operating Revenue, Other | 6,009 | 11,243 |
Revenues | 1,046,130 | 1,114,839 |
Electricity, US Regulated [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 607,693 | 637,189 |
Natural Gas, US Regulated [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 365,637 | 322,560 |
Other Revenue From Contracts with Customers [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 43,774 | 135,696 |
Decoupling over-collection [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Regulated Operating Revenue, Other | 1,150 | (25,231) |
Other Non-606 Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Regulated Operating Revenue, Other | 27,876 | 44,625 |
Subsidiaries [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Regulated Operating Revenue, Other | 6,009 | 11,243 |
Revenues | $ 1,046,130 | $ 1,114,839 |
Accounting for Derivative Ins_3
Accounting for Derivative Instruments and Hedging Activities Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Subsidiaries [Member] | |
Derivative [Line Items] | |
Hedging strategy number of years extended | 3 years |
External Credit Rating, Investment Grade [Member] | |
Derivative [Line Items] | |
Derivative, Credit Risk Exposure, Percentage | 97.30% |
External Credit Rating, Non Investment Grade [Member] | |
Derivative [Line Items] | |
Derivative, Credit Risk Exposure, Percentage | 2.70% |
Credit Rating [Member] | |
Derivative [Line Items] | |
Posted Collateral | $ 18.5 |
Credit Rating [Member] | Natural Gas Portfolio [Member] | |
Derivative [Line Items] | |
Posted Collateral | $ 6.2 |
Accounting for Derivative Ins_4
Accounting for Derivative Instruments and Hedging Activities Derivative Assets and Liabilities (Details) $ in Thousands, MMBTU in Millions | Mar. 31, 2020USD ($)MMBTU | Dec. 31, 2019USD ($)MMBTU | |
Derivative [Line Items] | |||
Current, Assets | $ 14,906 | $ 23,626 | |
Long-term, Assets | 3,718 | 7,682 | |
Current, Liabilities | 41,709 | 13,428 | |
Long-term, Liabilities | 29,506 | 12,693 | |
Not Designated as Hedging Instrument [Member] | |||
Derivative [Line Items] | |||
Current, Assets | 14,906 | 23,626 | |
Long-term, Assets | 3,718 | 7,682 | |
Assets | [1] | 18,624 | 31,308 |
Current, Liabilities | 41,709 | 13,428 | |
Long-term, Liabilities | 29,506 | 12,693 | |
Derivative Liability | [2] | $ 71,215 | $ 26,121 |
Not Designated as Hedging Instrument [Member] | Natural Gas Derivatives [Member] | |||
Derivative [Line Items] | |||
Derivative, Nonmonetary Notional Amount | MMBTU | 292.1 | 315.5 | |
Not Designated as Hedging Instrument [Member] | Electric Portfolio [Member] | |||
Derivative [Line Items] | |||
Assets | $ 11,028 | $ 19,933 | |
Derivative Liability | 57,140 | 17,504 | |
Not Designated as Hedging Instrument [Member] | Natural Gas Portfolio [Member] | |||
Derivative [Line Items] | |||
Assets | 7,596 | 11,375 | |
Derivative Liability | $ 14,075 | $ 8,617 | |
Not Designated as Hedging Instrument [Member] | Electric Generation Fuel [Member] | |||
Derivative [Line Items] | |||
Derivative, Nonmonetary Notional Amount | MMBTU | 230.8 | 229.3 | |
Not Designated as Hedging Instrument [Member] | Purchased Electricity [Member] | |||
Derivative [Line Items] | |||
Derivative, Nonmonetary Notional Amount | MMBTU | 8.2 | 10.4 | |
[1] | _______________ 1 Balance sheet classification: Current and Long-term Unrealized gain on derivative instruments. | ||
[2] | 2 Balance sheet classification: Current and Long-term Unrealized loss on derivative instruments. |
Accounting for Derivative Ins_5
Accounting for Derivative Instruments and Hedging Activities Net Amount of Derivatives Reported in the Statement of Financial Position (Details) - Commodity Contract [Member] - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Assets: | ||
Gross Amount Recognized in the Statement of Financial Position | $ 18,624 | $ 31,308 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Assets | 18,624 | 31,308 |
Commodity Contracts | (16,598) | (14,922) |
Cash Collateral Received | 0 | 0 |
Net Amount | 2,026 | 16,386 |
Liabilities: | ||
Gross Amount Recognized in the Statement of Financial Position | 71,215 | 26,121 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Derivative Liability | 71,215 | 26,121 |
Commodity Contracts | (16,598) | (14,922) |
Cash Collateral Posted | 2,000 | 2,000 |
Net Amount | $ 56,617 | $ 13,199 |
Accounting for Derivative Ins_6
Accounting for Derivative Instruments and Hedging Activities Recognized in Statement of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Derivative Instruments, (Loss) Gain [Line Items] | ||
Unrealized (gain) loss on derivative instruments | $ (48,541) | $ 15,187 |
Not Designated as Hedging Instrument [Member] | ||
Derivative Instruments, (Loss) Gain [Line Items] | ||
Unrealized (gain) loss on derivative instruments | (53,180) | 64,807 |
Not Designated as Hedging Instrument [Member] | Electric Generation Fuel [Member] | Unrealized (Gain) Loss on Derivative Instruments, Net [Member] | ||
Derivative Instruments, (Loss) Gain [Line Items] | ||
Unrealized (gain) loss on derivative instruments | (9,755) | 14,961 |
Not Designated as Hedging Instrument [Member] | Commodity Contract [Member] | Electric Generation Fuel [Member] | ||
Derivative Instruments, (Loss) Gain [Line Items] | ||
Unrealized (gain) loss on derivative instruments | 1,296 | 13,328 |
Not Designated as Hedging Instrument [Member] | Commodity Contract [Member] | Purchased Electricity [Member] | ||
Derivative Instruments, (Loss) Gain [Line Items] | ||
Unrealized (gain) loss on derivative instruments | (5,935) | 36,292 |
Not Designated as Hedging Instrument [Member] | Electricity, US Regulated [Member] | Unrealized (Gain) Loss on Derivative Instruments, Net [Member] | ||
Derivative Instruments, (Loss) Gain [Line Items] | ||
Unrealized (gain) loss on derivative instruments | $ (38,786) | $ 226 |
Accounting for Derivative Ins_7
Accounting for Derivative Instruments and Hedging Activities Contractual Contingent Liability (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Electric Portfolio [Member] | ||
Derivative [Line Items] | ||
Fair Value Liability | $ 46,677 | $ 11,363 |
Posted Collateral | 0 | 14,827 |
Additional Collateral, Aggregate Fair Value | 30,427 | 6,110 |
Credit Rating [Member] | ||
Derivative [Line Items] | ||
Posted Collateral | 18,500 | |
Credit Rating [Member] | Electric Portfolio [Member] | ||
Derivative [Line Items] | ||
Fair Value Liability | 30,427 | 6,110 |
Posted Collateral | 0 | 0 |
Additional Collateral, Aggregate Fair Value | 30,427 | 6,110 |
Requested Credit for Adequate Assurance [Member] | Electric Portfolio [Member] | ||
Derivative [Line Items] | ||
Fair Value Liability | 6,107 | 5,253 |
Posted Collateral | 0 | 0 |
Additional Collateral, Aggregate Fair Value | 0 | 0 |
Forward Value of Contract [Member] | Electric Portfolio [Member] | ||
Derivative [Line Items] | ||
Fair Value Liability | 10,143 | 0 |
Posted Collateral | $ 0 | $ 14,827 |
Fair Value Measurements Debt at
Fair Value Measurements Debt at at Carrying and Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | |
Liabilities: | |||
Total long-term debt | $ 5,930,818 | $ 5,920,325 | |
Carrying Value [Member] | Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments, Fair Value Disclosure | 51,500 | ||
Subsidiaries [Member] | |||
Liabilities: | |||
Total long-term debt | 4,336,612 | 4,336,142 | |
Discounted cash flow [Member] | Carrying Value [Member] | |||
Liabilities: | |||
Total long-term debt | 5,930,818 | 5,920,325 | |
Discounted cash flow [Member] | Carrying Value [Member] | Level 2 [Member] | |||
Liabilities: | |||
Long-term debt (fixed-rate), net of discount | [1] | 5,515,318 | 5,512,225 |
Long-term debt (variable-rate) | 415,500 | 408,100 | |
Debt issuance costs | 23,300 | 24,100 | |
Discounted cash flow [Member] | Fair Value [Member] | |||
Liabilities: | |||
Total long-term debt | 7,345,719 | 7,412,416 | |
Discounted cash flow [Member] | Fair Value [Member] | Level 2 [Member] | |||
Liabilities: | |||
Long-term debt (fixed-rate), net of discount | [1] | 6,930,219 | 7,004,316 |
Long-term debt (variable-rate) | 415,500 | 408,100 | |
Discounted cash flow [Member] | Subsidiaries [Member] | Carrying Value [Member] | |||
Liabilities: | |||
Total long-term debt | 4,336,612 | 4,336,142 | |
Discounted cash flow [Member] | Subsidiaries [Member] | Carrying Value [Member] | Level 2 [Member] | |||
Liabilities: | |||
Long-term debt (fixed-rate), net of discount | [2] | 4,336,612 | 4,336,142 |
Debt issuance costs | 24,000 | 24,400 | |
Discounted cash flow [Member] | Subsidiaries [Member] | Fair Value [Member] | |||
Liabilities: | |||
Total long-term debt | 5,563,257 | 5,571,818 | |
Discounted cash flow [Member] | Subsidiaries [Member] | Fair Value [Member] | Level 2 [Member] | |||
Liabilities: | |||
Long-term debt (fixed-rate), net of discount | [2] | $ 5,563,257 | $ 5,571,818 |
[1] | 1 The carrying value includes debt issuances costs of $23.3 million and $24.1 million for March 31, 2020 and December 31, 2019, respectively, which are not included in fair value. | ||
[2] | 2 The carrying value includes debt issuances costs of $24.0 million and $24.4 million for March 31, 2020 and December 31, 2019, respectively, which are not included in fair value. |
Fair Value Measurements Assets
Fair Value Measurements Assets and Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | |||||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance at beginning of period | $ (2,097) | $ 3,035 | ||||
Included in earnings | [1] | (24,552) | 12,325 | |||
Included in regulatory assets/liabilities | 323 | 1,897 | ||||
Settlements | 1,113 | (14,583) | ||||
Transferred into Level 3 | 0 | 3,993 | ||||
Transferred out of Level 3 | 0 | 1,103 | ||||
Balance at end of period | (25,213) | 7,770 | ||||
Fair Value Measurements, Sensitivity Analysis, Hypothetical Increase or Decrease of Market Prices, Result on Fair Value | (5,100) | $ (2,500) | ||||
Electric Portfolio [Member] | ||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance at beginning of period | (3,379) | 1,362 | ||||
Included in earnings | [1] | (24,552) | 12,325 | |||
Included in regulatory assets/liabilities | 0 | 0 | ||||
Settlements | 1,626 | (13,483) | ||||
Transferred into Level 3 | 0 | 4,391 | ||||
Transferred out of Level 3 | 0 | 417 | ||||
Balance at end of period | (26,305) | 5,012 | ||||
Gain (loss) on derivatives | 0 | |||||
Natural Gas Portfolio [Member] | ||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance at beginning of period | 1,282 | 1,673 | ||||
Included in earnings | [1] | 0 | 0 | |||
Included in regulatory assets/liabilities | 323 | 1,897 | ||||
Settlements | (513) | (1,100) | ||||
Transferred into Level 3 | 0 | (398) | ||||
Transferred out of Level 3 | 0 | 686 | ||||
Balance at end of period | 1,092 | $ 2,758 | ||||
Fair Value, Recurring [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Derivative Assets | 18,624 | 31,308 | ||||
Derivative Liability | 71,215 | 26,121 | ||||
Fair Value, Recurring [Member] | Electric Portfolio [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Derivative Assets | 11,028 | 19,933 | ||||
Derivative Liability | 57,140 | 17,504 | ||||
Fair Value, Recurring [Member] | Natural Gas Portfolio [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Derivative Assets | 7,596 | 11,375 | ||||
Derivative Liability | 14,075 | 8,617 | ||||
Fair Value, Recurring [Member] | Level 2 [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Derivative Assets | 16,846 | 29,134 | ||||
Derivative Liability | 44,223 | 21,850 | ||||
Fair Value, Recurring [Member] | Level 2 [Member] | Electric Portfolio [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Derivative Assets | 10,525 | 19,282 | ||||
Derivative Liability | 30,331 | 13,474 | ||||
Fair Value, Recurring [Member] | Level 2 [Member] | Natural Gas Portfolio [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Derivative Assets | 6,321 | 9,852 | ||||
Derivative Liability | 13,892 | 8,376 | ||||
Fair Value, Recurring [Member] | Level 3 [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Derivative Assets | 1,778 | 2,174 | ||||
Derivative Liability | 26,992 | 4,271 | ||||
Fair Value, Recurring [Member] | Level 3 [Member] | Electric Portfolio [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Derivative Assets | 503 | [2] | 651 | [3] | ||
Derivative Liability | 26,809 | [2] | 4,030 | [3] | ||
Fair Value, Recurring [Member] | Level 3 [Member] | Natural Gas Portfolio [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Derivative Assets | 1,275 | [2] | 1,523 | [3] | ||
Derivative Liability | $ 183 | [2] | $ 241 | [3] | ||
[1] | Income Statement locations: Unrealized (gain) loss on derivative instruments, net. Amounts include unrealized gains (losses) on derivatives still held in position as of the reporting date for electric derivatives of zero and $3.1 million for three months ended March 31, 2020 and 2019 | |||||
[2] | The valuation techniques, unobservable inputs and ranges are the same for asset and liability positions. | |||||
[3] | The valuation techniques, unobservable inputs and ranges are the same for asset and liability positions. |
Fair Value Measurements Valuati
Fair Value Measurements Valuation Techniques for Measurement with Unobservable Inputs (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020USD ($)$ / MWh | Dec. 31, 2019USD ($)$ / MWh | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair Value measurement, sensitivity analysis, hypothetical increase or decrease of market prices, result on fair value | 1000.00% | |
Fair Value Measurements, Sensitivity Analysis, Hypothetical Increase or Decrease of Market Prices, Result on Fair Value | $ (5,100,000) | $ (2,500,000) |
Rocky Reach | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Finite-Lived Intangible Assets, Net | 147,168,000 | |
Impairment of Intangible Assets (Excluding Goodwill) | 52,565,000 | |
Asset Impairment Charges | $ 52,600,000 | |
Change in forward prices | 7.60% | |
Rocky Reach | Carrying Value [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Finite-lived Intangible Assets, Fair Value Disclosure | $ 94,603,000 | |
Discounted cash flow [Member] | Low [Member] | Rocky Reach | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Price (per MWh) | $ / MWh | 10.23 | 11.75 |
Fair Value Inputs, Power Contract Costs | $ 6,308 | $ 6,237 |
Discounted cash flow [Member] | High [Member] | Rocky Reach | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Price (per MWh) | $ / MWh | 29.05 | 31.44 |
Fair Value Inputs, Power Contract Costs | $ 7,085 | $ 7,087 |
Discounted cash flow [Member] | Weighted Average [Member] | Rocky Reach | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Price (per MWh) | $ / MWh | 20.88 | 22.53 |
Fair Value Inputs, Power Contract Costs | $ 6,468 | $ 6,421 |
Fair Value, Recurring [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Derivative Assets | 18,624,000 | 31,308,000 |
Derivative Liability | $ 71,215,000 | $ 26,121,000 |
Electric Portfolio [Member] | Discounted cash flow [Member] | Low [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Price (per MWh) | 6 | 9 |
Electric Portfolio [Member] | Discounted cash flow [Member] | High [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Price (per MWh) | 38.45 | 43.85 |
Electric Portfolio [Member] | Discounted cash flow [Member] | Weighted Average [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Price (per MWh) | 29.59 | 33.99 |
Electric Portfolio [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Derivative Assets | $ 11,028,000 | $ 19,933,000 |
Derivative Liability | $ 57,140,000 | $ 17,504,000 |
Natural Gas Portfolio [Member] | Discounted cash flow [Member] | Low [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Price (per MMBtu) | 1.34 | 1.25 |
Natural Gas Portfolio [Member] | Discounted cash flow [Member] | High [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Price (per MMBtu) | 2.78 | 3.18 |
Natural Gas Portfolio [Member] | Discounted cash flow [Member] | Weighted Average [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Price (per MMBtu) | 1.85 | 2.47 |
Natural Gas Portfolio [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Derivative Assets | $ 7,596,000 | $ 11,375,000 |
Derivative Liability | $ 14,075,000 | $ 8,617,000 |
Retirement Benefits - Benefit O
Retirement Benefits - Benefit Obligations (Details) - Subsidiaries [Member] | 3 Months Ended |
Mar. 31, 2020 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Defined Contribution Plan, Interest Credit | 1.00% |
employer contribution [Member] | Collective Bargaining Arrangement [Member] | UA represented [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 4.00% |
Retirement Benefits Net Periodi
Retirement Benefits Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Qualified Pension Benefits [Member] | |||
Components of net periodic benefit cost: | |||
Service cost | $ 5,997 | $ 22,656 | |
Interest cost | 6,298 | 28,913 | |
Net periodic benefit cost | 1,279 | $ (365) | |
Supplemental Employee Retirement Plan [Member] | |||
Components of net periodic benefit cost: | |||
Service cost | 228 | 1,023 | |
Interest cost | 378 | 2,314 | |
Net periodic benefit cost | 1,279 | 1,258 | |
Other Benefit [Member] | |||
Components of net periodic benefit cost: | |||
Service cost | 49 | 61 | |
Interest cost | 91 | $ 410 | |
Net periodic benefit cost | 21 | (32) | |
Parent Company [Member] | Qualified Pension Benefits [Member] | |||
Components of net periodic benefit cost: | |||
Service cost | 5,997 | 5,287 | |
Interest cost | 6,298 | 7,216 | |
Expected return on plan assets | (12,502) | (12,624) | |
Amortization of prior service cost | (495) | (495) | |
Amortization of net loss (gain) | 1,981 | 251 | |
Parent Company [Member] | Supplemental Employee Retirement Plan [Member] | |||
Components of net periodic benefit cost: | |||
Service cost | 228 | 256 | |
Interest cost | 378 | 578 | |
Expected return on plan assets | 0 | 0 | |
Amortization of prior service cost | 87 | 83 | |
Amortization of net loss (gain) | 586 | 341 | |
Parent Company [Member] | Other Benefit [Member] | |||
Components of net periodic benefit cost: | |||
Service cost | 49 | 16 | |
Interest cost | 91 | 112 | |
Expected return on plan assets | (97) | (97) | |
Amortization of prior service cost | 0 | 0 | |
Amortization of net loss (gain) | (22) | (63) | |
Subsidiaries [Member] | Qualified Pension Benefits [Member] | |||
Components of net periodic benefit cost: | |||
Service cost | 5,997 | 5,287 | |
Interest cost | 6,298 | 7,216 | |
Expected return on plan assets | (12,504) | (12,628) | |
Amortization of prior service cost | (393) | (393) | |
Amortization of net loss (gain) | 4,656 | 3,165 | |
Net periodic benefit cost | 4,054 | 2,647 | |
Subsidiaries [Member] | Supplemental Employee Retirement Plan [Member] | |||
Components of net periodic benefit cost: | |||
Service cost | 228 | 256 | |
Interest cost | 378 | 578 | |
Expected return on plan assets | 0 | 0 | |
Amortization of prior service cost | 87 | 83 | |
Amortization of net loss (gain) | 659 | 433 | |
Net periodic benefit cost | 1,352 | 1,350 | |
Subsidiaries [Member] | Other Benefit [Member] | |||
Components of net periodic benefit cost: | |||
Service cost | 49 | 16 | |
Interest cost | 91 | 112 | |
Expected return on plan assets | (97) | (98) | |
Amortization of prior service cost | 0 | 0 | |
Amortization of net loss (gain) | (36) | (109) | |
Net periodic benefit cost | $ 7 | $ (79) |
Retirement Benefits Change in N
Retirement Benefits Change in Net Benefit Obligation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Qualified Pension Benefits [Member] | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||
Benefit obligation at beginning of period | $ 774,305 | $ 677,643 |
Service cost | 5,997 | 22,656 |
Interest cost | 6,298 | 28,913 |
Actuarial loss (gain) | 0 | 84,272 |
Benefits paid | (11,250) | (36,740) |
Medicare part D subsidy received | 0 | 0 |
Administrative Expense | 0 | 2,439 |
Benefit obligation at end of period | 775,350 | 774,305 |
Supplemental Employee Retirement Plan [Member] | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||
Benefit obligation at beginning of period | 63,000 | 55,708 |
Service cost | 228 | 1,023 |
Interest cost | 378 | 2,314 |
Actuarial loss (gain) | (478) | 6,756 |
Benefits paid | (13,649) | (2,801) |
Medicare part D subsidy received | 0 | 0 |
Administrative Expense | 0 | 0 |
Benefit obligation at end of period | 49,479 | 63,000 |
Other Benefit [Member] | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||
Benefit obligation at beginning of period | 11,627 | 10,636 |
Amendments | 0 | (9,049) |
Service cost | 49 | 61 |
Interest cost | 91 | 410 |
Actuarial loss (gain) | 0 | (287) |
Benefits paid | (251) | (982) |
Medicare part D subsidy received | 0 | 226 |
Administrative Expense | 0 | 0 |
Benefit obligation at end of period | 11,516 | 11,627 |
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Curtailment | 0 | (7,486) |
Qualified Plan [Member] | Qualified Pension Benefits [Member] | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||
Amendments | 0 | 0 |
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Curtailment | 0 | 0 |
Nonqualified Plan [Member] | Qualified Pension Benefits [Member] | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Curtailment | 0 | 0 |
Nonqualified Plan [Member] | Supplemental Employee Retirement Plan [Member] | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||
Amendments | $ 0 | $ 0 |
Retirement Benefits Activity (D
Retirement Benefits Activity (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2020 | |
Supplemental Employee Retirement Plan [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Employer contributions | $ 13.6 | $ 0.5 | |
Forecast [Member] | Qualified Pension Benefits [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Aggregate expected contributions | $ 18 | ||
Forecast [Member] | Supplemental Employee Retirement Plan [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Aggregate expected contributions | 26.1 | ||
Forecast [Member] | Other Benefit [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Aggregate expected contributions | $ 0.3 |
Regulation and Rates (Details)
Regulation and Rates (Details) - USD ($) $ in Thousands | Jan. 15, 2020 | Nov. 01, 2019 | Jun. 20, 2019 | Apr. 10, 2019 | Mar. 01, 2019 | Nov. 07, 2018 | May 01, 2018 | Mar. 01, 2018 | Dec. 19, 2017 | Dec. 18, 2017 | Mar. 31, 2020 | Mar. 31, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Regulatory Assets [Line Items] | ||||||||||||||||||
Income tax (benefit) expense | $ 3,984 | $ 8,428 | ||||||||||||||||
Depreciation & Amortization | 164,816 | 180,697 | ||||||||||||||||
Subsidiaries [Member] | ||||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||||
Regulated Utility, Allowed Rate of Return on Net Regulatory Assets and Liabilities | 7.49% | |||||||||||||||||
Income tax (benefit) expense | $ 34,600 | 13,265 | 18,830 | |||||||||||||||
Annual Power Cost Variability, Interest | 500 | 0 | ||||||||||||||||
PGA payable | 91,300 | 137,100 | $ 132,800 | $ 9,900 | ||||||||||||||
Depreciation & Amortization | 164,771 | 180,678 | ||||||||||||||||
Liabilities, Other than Long-term Debt, Noncurrent | 11,000 | |||||||||||||||||
Customer Bill Assistance | 1 | |||||||||||||||||
Subsidiaries [Member] | Electricity, US Regulated [Member] | ||||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||||
Storm Damage Costs Incurred During Period | 9,900 | 38,400 | ||||||||||||||||
Public Utilities, Rate Case, Deferred Storm Costs Threshold | $ 10,000 | $ 8,000 | ||||||||||||||||
Public Utilities, Rate Case, Deferred Storm Qualifying Costs | $ 500 | |||||||||||||||||
General Rate Case [Member] | Subsidiaries [Member] | ||||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||||
Public Utilities, Requested Return on Equity, Percentage | 9.50% | 7.62% | ||||||||||||||||
Regulated Utility, Allowed Rate of Return on Net Regulatory Assets and Liabilities | 7.48% | 7.49% | 7.60% | |||||||||||||||
General Rate Case [Member] | Subsidiaries [Member] | Electricity, US Regulated [Member] | ||||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||||
Public Utilities, Requested Rate Increase (Decrease), Percentage | 6.90% | |||||||||||||||||
Public Utilities, Requested Rate Increase (Decrease), Amount | $ (1,500) | |||||||||||||||||
General Rate Case [Member] | Subsidiaries [Member] | Natural Gas, US Regulated [Member] | ||||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||||
Public Utilities, Requested Rate Increase (Decrease), Percentage | 7.90% | |||||||||||||||||
General Rate Case [Member] | Maximum [Member] | Subsidiaries [Member] | ||||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||||
Public Utilities, Requested Return on Equity, Percentage | 9.80% | |||||||||||||||||
Expedited Rate Filing (ERF) [Member] | Subsidiaries [Member] | Electricity, US Regulated [Member] | ||||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||||
Public Utilities, Requested Rate Increase (Decrease), Percentage | 0.90% | |||||||||||||||||
Public Utilities, Requested Rate Increase (Decrease), Amount | $ 18,900 | |||||||||||||||||
Expedited Rate Filing (ERF) [Member] | Subsidiaries [Member] | Natural Gas, US Regulated [Member] | ||||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||||
Public Utilities, Requested Rate Increase (Decrease), Percentage | 2.70% | |||||||||||||||||
Public Utilities, Requested Rate Increase (Decrease), Amount | $ 21,700 | $ 6,100 | ||||||||||||||||
Public Utilities, Approved Rate Increase (Decrease), Amount | $ 21,500 | $ 25,900 | ||||||||||||||||
Tax Cuts and Jobs Act [Member] | Subsidiaries [Member] | Electricity, US Regulated [Member] | ||||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||||
Public Utilities, Requested Rate Increase (Decrease), Amended, Amount | $ (72,900) | |||||||||||||||||
Public Utilities, Requested Rate Increase (Decrease), Amended, Percentage | (3.40%) | |||||||||||||||||
Tax Cuts and Jobs Act [Member] | Subsidiaries [Member] | Electricity, US Regulated [Member] | Subsequent Event [Member] | ||||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||||
Customer Refundable Fees, Refund Payments | $ 100 | |||||||||||||||||
Tax Cuts and Jobs Act [Member] | Subsidiaries [Member] | Natural Gas, US Regulated [Member] | ||||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||||
Public Utilities, Requested Rate Increase (Decrease), Amended, Amount | $ (23,600) | |||||||||||||||||
Public Utilities, Requested Rate Increase (Decrease), Amended, Percentage | (2.70%) | |||||||||||||||||
Decoupling Mechanism [Member] | Maximum [Member] | Subsidiaries [Member] | Electricity, US Regulated [Member] | ||||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||||
Public Utilities, Approved Rate Increase (Decrease), Percentage | 3.00% | |||||||||||||||||
Decoupling Mechanism [Member] | Maximum [Member] | Subsidiaries [Member] | Natural Gas, US Regulated [Member] | ||||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||||
Public Utilities, Approved Rate Increase (Decrease), Percentage | 5.00% | 3.00% | ||||||||||||||||
General Rate Case, Electric [Member] | Subsidiaries [Member] | ||||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||||
Public Utilities, Requested Rate Increase (Decrease), Percentage | 6.90% | |||||||||||||||||
General Rate Case, Natural Gas [Member] | Subsidiaries [Member] | ||||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||||
Public Utilities, Requested Rate Increase (Decrease), Percentage | 7.90% | |||||||||||||||||
Purchased Gas Adjustment [Member] | Subsidiaries [Member] | ||||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||||
Public Utilities, Approved Rate Increase (Decrease), Amount | $ 17,800 | |||||||||||||||||
Purchased natural gas costs | 114,400 | 224,700 | ||||||||||||||||
Purchased natural gas costs, recoverable | 157,200 | 98,100 | ||||||||||||||||
Purchased natural gas adjustment, interest | 1,400 | 600 | ||||||||||||||||
Annual revenue | 100,600 | |||||||||||||||||
Out of Cycle PGA | 54,000 | |||||||||||||||||
Under collected commodity balances | 114,400 | |||||||||||||||||
Commodity Costs | 10,800 | |||||||||||||||||
Refund to Customers, remaining balance | 4,100 | |||||||||||||||||
Refund to Customers | $ 54,700 | |||||||||||||||||
Get to Zero Deferral Filing [Member] | Subsidiaries [Member] | ||||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||||
Regulated Utility, Allowed Rate of Return on Net Regulatory Assets and Liabilities | 6.89% | |||||||||||||||||
Depreciation & Amortization | 31,300 | 1,200 | ||||||||||||||||
Public Utilities, Property, Plant and Equipment, Equipment, Useful Life | 10 years | |||||||||||||||||
Storm That Occurred In 2018 [Member] | Subsidiaries [Member] | Electricity, US Regulated [Member] | ||||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||||
Storm Damage Costs Deferred During Period | 1,100 | |||||||||||||||||
Storm That Occurred In 2019 [Member] | Subsidiaries [Member] | Electricity, US Regulated [Member] | ||||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||||
Storm Damage Costs Deferred During Period | $ 0 | $ 26,400 |
Schedule of Power Cost Adjustme
Schedule of Power Cost Adjustment Mechanism (Details) - Subsidiaries [Member] $ in Millions | 3 Months Ended | |
Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | |
Regulatory Assets and Liabiliaties [Line Items] | ||
Annual Power Cost Variability, Interest | $ 0.5 | $ 0 |
Customer's share [Member] | Under-collection [Member] | ||
Regulatory Assets and Liabiliaties [Line Items] | ||
Annual Power Cost Variability, Amount | $ 4 | 14.3 |
Customer's share [Member] | Range 1 [Member] | Under-collection [Member] | ||
Regulatory Assets and Liabiliaties [Line Items] | ||
Annual Power Cost Variability | 0 | |
Customer's share [Member] | Range 1 [Member] | Over-collection [Member] | ||
Regulatory Assets and Liabiliaties [Line Items] | ||
Annual Power Cost Variability | 0 | |
Customer's share [Member] | Range 2 [Member] | Under-collection [Member] | ||
Regulatory Assets and Liabiliaties [Line Items] | ||
Annual Power Cost Variability | 0.50 | |
Customer's share [Member] | Range 2 [Member] | Over-collection [Member] | ||
Regulatory Assets and Liabiliaties [Line Items] | ||
Annual Power Cost Variability | 0.65 | |
Customer's share [Member] | Range 3 [Member] | Under-collection [Member] | ||
Regulatory Assets and Liabiliaties [Line Items] | ||
Annual Power Cost Variability | 0.90 | |
Customer's share [Member] | Range 3 [Member] | Over-collection [Member] | ||
Regulatory Assets and Liabiliaties [Line Items] | ||
Annual Power Cost Variability | 0.90 | |
Companys share [Member] | Under-collection [Member] | ||
Regulatory Assets and Liabiliaties [Line Items] | ||
Annual Power Cost Variability, Amount | $ 25.1 | $ 43.1 |
Companys share [Member] | Range 1 [Member] | Under-collection [Member] | ||
Regulatory Assets and Liabiliaties [Line Items] | ||
Annual Power Cost Variability | 1 | |
Companys share [Member] | Range 1 [Member] | Over-collection [Member] | ||
Regulatory Assets and Liabiliaties [Line Items] | ||
Annual Power Cost Variability | 1 | |
Companys share [Member] | Range 2 [Member] | Under-collection [Member] | ||
Regulatory Assets and Liabiliaties [Line Items] | ||
Annual Power Cost Variability | 0.50 | |
Companys share [Member] | Range 2 [Member] | Over-collection [Member] | ||
Regulatory Assets and Liabiliaties [Line Items] | ||
Annual Power Cost Variability | 0.35 | |
Companys share [Member] | Range 3 [Member] | Under-collection [Member] | ||
Regulatory Assets and Liabiliaties [Line Items] | ||
Annual Power Cost Variability | 0.10 | |
Companys share [Member] | Range 3 [Member] | Over-collection [Member] | ||
Regulatory Assets and Liabiliaties [Line Items] | ||
Annual Power Cost Variability | 0.10 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Mar. 31, 2020USD ($) |
Loss Contingencies [Line Items] | |
Purchase Obligation | $ 473.7 |
Colstrip Units 1 and 2 [Member] | |
Loss Contingencies [Line Items] | |
Ownership interest (percent) | 50.00% |
Jointly owned utility plant | 2 |
Colstrip Units 3 and 4 [Member] | |
Loss Contingencies [Line Items] | |
Ownership interest (percent) | 25.00% |
Leases (Details)
Leases (Details) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Remaining lease term (less than) | 25 years |
Lessee, lease, renewal term (up to) | 50 years |
Leases - Schedule of the compon
Leases - Schedule of the components of lease expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Related Party Transaction [Line Items] | ||
Amortization of right-of-use asset | $ 152 | $ 158 |
Interest on lease liabilities | 10 | 9 |
Total finance lease cost | 162 | 167 |
Operating lease cost | 5,480 | $ 4,784 |
Land | Subsidiaries | ||
Related Party Transaction [Line Items] | ||
Operating lease cost | $ 300 |
Leases - Supplemental cash flow
Leases - Supplemental cash flow information related to leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Related Party Transaction [Line Items] | ||
Operating cash flow for operating leases | $ 3,773 | $ 4,346 |
Investing cash flow for operating leases | 1,707 | 438 |
Operating cash flow for finance leases | 10 | 9 |
Financing cash flow for finance leases | 152 | $ 158 |
Land | Subsidiaries | ||
Related Party Transaction [Line Items] | ||
Investing cash flow for operating leases | $ 300 |
Leases - Supplemental balance s
Leases - Supplemental balance sheet information related to leases (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Operating Leases | ||
Operating lease right-of-use asset | $ 180,188 | $ 183,048 |
Operating leases liabilities current | 16,183 | 15,862 |
Operating lease liabilities long-term | 170,638 | 174,327 |
Total Operating lease liabilities: | 186,821 | 190,189 |
Finance Leases | ||
Common Plant | 1,337 | 1,488 |
Other current liabilities | 657 | 669 |
Other deferred credits | 656 | 811 |
Total finance lease liabilities | $ 1,313 | $ 1,480 |
Weighted Average Remaining Lease Term | ||
Operating leases | 19 years 1 month 13 days | 19 years 2 months 26 days |
Finance leases | 2 years 5 months 23 days | 2 years 9 months 3 days |
Weighted Average Discount Rate | ||
Operating leases | 3.59% | 3.59% |
Finance leases | 2.98% | 2.98% |
Leases - Schedule of future min
Leases - Schedule of future minimum lease payments (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Operating Leases | ||
2019 | $ 15,649 | |
2020 | 22,762 | |
2021 | 22,095 | |
2022 | 21,657 | |
2023 | 20,932 | |
Thereafter | 160,676 | |
Total lease payments | 263,771 | $ 269,398 |
Less imputed interest | (76,950) | (79,209) |
Total | 186,821 | 190,189 |
Finance Leases | ||
2019 | 481 | |
2020 | 508 | |
2021 | 279 | |
2022 | 98 | |
2023 | 0 | |
Thereafter | 0 | |
Total lease payments | 1,366 | 1,528 |
Less imputed interest | (53) | (48) |
Total | $ 1,313 | 1,480 |
Thereafter | $ 0 |
Leases - Schedule of future m_2
Leases - Schedule of future minimum lease payments (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Operating Leases | ||
2019 | $ 22,500 | |
2020 | 22,527 | |
2021 | 21,856 | |
2022 | 21,415 | |
2023 | 20,690 | |
Thereafter | 160,410 | |
Finance Leases | ||
2019 | 643 | |
2020 | 508 | |
2021 | 279 | |
2022 | 98 | |
2023 | 0 | |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | $ 76,950 | 79,209 |
Finance Lease, Liability, Undiscounted Excess Amount | 53 | 48 |
Lessee, Operating Lease, Liability, Payments, Due | 263,771 | 269,398 |
Finance Lease, Liability, Payment, Due | 1,366 | 1,528 |
Total | 186,821 | 190,189 |
Total | $ 1,313 | $ 1,480 |
Other (Details)
Other (Details) - Subsidiaries [Member] $ in Millions | Mar. 31, 2020USD ($) |
Short-term Debt [Line Items] | |
Commercial Paper | $ 16 |
Working Capital Needs [Member] | |
Short-term Debt [Line Items] | |
Line of Credit Facility, Maximum Amount Outstanding During Period | $ 60 |