Document and Entity Information
Document and Entity Information Document - shares | 12 Months Ended | |
Dec. 31, 2020 | Feb. 24, 2021 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-K | |
Document Annual Report | true | |
Document Period End Date | Dec. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-7584 | |
Entity Registrant Name | TRANSCONTINENTAL GAS PIPE LINE COMPANY, LLC | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 74-1079400 | |
Entity Address, Address Line One | 2800 Post Oak Boulevard | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77056 | |
City Area Code | 713 | |
Local Phone Number | 215-2000 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0000099250 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | FY | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 0 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Revenues: | |||
Natural gas sales | $ 80,351 | $ 105,884 | $ 127,821 |
Natural gas transportation | 2,241,760 | 2,188,058 | 1,784,794 |
Natural gas storage | 161,956 | 147,687 | 136,666 |
Other | 20,246 | 11,113 | 10,600 |
Total operating revenues | 2,504,313 | 2,452,742 | 2,059,881 |
Operating Costs and Expenses: | |||
Cost of natural gas sales | 80,351 | 105,884 | 127,821 |
Cost of natural gas transportation | 53,654 | 50,273 | 38,749 |
Operation and maintenance | 323,093 | 382,513 | 399,293 |
Administrative and general | 184,768 | 217,000 | 189,588 |
Depreciation and amortization | 463,757 | 433,480 | 366,566 |
Taxes — other than income taxes | 83,687 | 76,632 | 67,537 |
Impairment of assets | 170,128 | 0 | 0 |
Regulatory credit resulting from tax rate changes | (30,752) | (24,202) | (20,867) |
Other expense, net | 5,461 | 6,195 | 64,918 |
Total operating costs and expenses | 1,334,147 | 1,247,775 | 1,233,605 |
Operating Income | 1,170,166 | 1,204,967 | 826,276 |
Other (Income) and Other Expenses: | |||
Interest expense - affiliate | 892 | 2,319 | 60 |
- other | 311,451 | 283,990 | 218,126 |
Interest income - affiliate | (132) | (89) | (7,606) |
- other | (4,265) | (4,349) | (3,448) |
Allowance for equity and borrowed funds used during construction (AFUDC) | (22,648) | (39,289) | (116,347) |
Equity in earnings of unconsolidated affiliates | 0 | (3,216) | (1,068) |
Miscellaneous other (income) expenses, net | 4,832 | 2,305 | (4,520) |
Total other (income) and other expenses | 290,130 | 241,671 | 85,197 |
Net Income | 880,036 | 963,296 | 741,079 |
Other comprehensive income: | |||
Equity interest in unrealized gain on interest rate hedges (includes $(162) and $(143) for the years ended December 31, 2019 and 2018, respectively, of accumulated other comprehensive income reclassification for equity interest in realized losses (gains) on interest rate hedges) | 0 | (641) | 197 |
Comprehensive Income | $ 880,036 | $ 962,655 | $ 741,276 |
Consolidated Statement of Com_2
Consolidated Statement of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | ||
Accumulated other comprehensive income reclassification for realized losses (gains) on interest rate hedges | $ (162) | $ (143) |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current Assets: | ||
Cash | $ 0 | $ 0 |
Receivables: | ||
Trade | 223,864 | 242,416 |
Affiliates | 1,011 | 669 |
Advances to affiliate | 642,734 | 0 |
Other | 14,660 | 10,850 |
Transportation and exchange gas receivables | 4,627 | 6,360 |
Inventories: | ||
Gas in storage, at original cost | 926 | 857 |
Gas available for customer nomination, at average cost | 7,909 | 20,653 |
Materials and supplies, at average cost | 47,462 | 43,482 |
Regulatory assets | 62,861 | 69,440 |
Other | 13,847 | 11,240 |
Total current assets | 1,019,901 | 405,967 |
Property, Plant and Equipment: | ||
Natural gas transmission plant | 17,123,779 | 16,764,904 |
Less-Accumulated depreciation and amortization | 4,802,256 | 4,438,077 |
Total property, plant and equipment, net | 12,321,523 | 12,326,827 |
Other Assets: | ||
Regulatory assets | 281,870 | 290,923 |
Right-of-use assets | 78,899 | 84,979 |
Other | 252,051 | 210,017 |
Total other assets | 612,820 | 585,919 |
Total assets | 13,954,244 | 13,318,713 |
Payables: | ||
Trade | 109,636 | 155,676 |
Affiliates | 32,676 | 47,740 |
Advances from affiliate | 0 | 252,549 |
Cash overdrafts | 18,813 | 28,292 |
Transportation and exchange gas payables | 1,905 | 3,961 |
Reserve for rate refunds | 0 | 188,842 |
Accrued liabilities: | ||
Property and other taxes | 20,177 | 19,034 |
Interest | 75,806 | 70,572 |
Regulatory liabilities | 57,086 | 57,359 |
Customer deposits | 24,686 | 30,551 |
Customer advances | 27,082 | 27,207 |
Asset retirement obligations | 52,764 | 32,704 |
Other | 41,864 | 19,060 |
Long-term debt due within one year | 22,640 | 20,180 |
Total current liabilities | 485,135 | 953,727 |
Long-Term Debt | 5,217,140 | 4,044,790 |
Other Long-Term Liabilities: | ||
Asset retirement obligations | 397,737 | 426,505 |
Regulatory liabilities | 946,774 | 966,961 |
Advances for construction costs | 38,585 | 16,533 |
Deferred revenue | 205,030 | 215,598 |
Lease liability | 78,688 | 84,528 |
Other | 4,336 | 4,288 |
Total other long-term liabilities | 1,671,150 | 1,714,413 |
Contingent Liabilities and Commitments (Note 4) | ||
Member's Equity: | ||
Member's capital | 4,543,499 | 4,428,499 |
Retained earnings | 2,037,320 | 2,177,284 |
Total member's equity | 6,580,819 | 6,605,783 |
Total liabilities and member's equity | $ 13,954,244 | $ 13,318,713 |
Consolidated Statement of Membe
Consolidated Statement of Member's Equity Consolidated Statement of Member's Equity - USD ($) $ in Thousands | Total | Member's Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Balance at beginning of period at Dec. 31, 2017 | $ 4,088,499 | $ 1,848,488 | $ 337 | |
Cash contributions from parent | $ 340,000 | 340,000 | ||
Net income | 741,079 | 741,079 | ||
Cash distributions to parent | (490,000) | (490,000) | ||
Non-cash distribution to parent | 0 | |||
Non-cash distribution of investments in subsidiaries | 0 | 0 | ||
Equity interest in unrealized gain (loss) on interest rate hedge | 197 | 197 | ||
Balance at end of period at Dec. 31, 2018 | 6,528,600 | 4,428,499 | 2,099,567 | 534 |
Cash contributions from parent | 0 | 0 | ||
Net income | 963,296 | 963,296 | ||
Cash distributions to parent | (824,000) | (824,000) | ||
Non-cash distribution to parent | (25,000) | |||
Non-cash distribution of investments in subsidiaries | (36,579) | (107) | ||
Equity interest in unrealized gain (loss) on interest rate hedge | (641) | (641) | ||
Balance at end of period at Dec. 31, 2019 | 6,605,783 | 4,428,499 | 2,177,284 | 0 |
Cash contributions from parent | 115,000 | 115,000 | ||
Net income | 880,036 | 880,036 | ||
Cash distributions to parent | (1,020,000) | (1,020,000) | ||
Non-cash distribution to parent | 0 | |||
Non-cash distribution of investments in subsidiaries | 0 | 0 | ||
Equity interest in unrealized gain (loss) on interest rate hedge | 0 | 0 | ||
Balance at end of period at Dec. 31, 2020 | $ 6,580,819 | $ 4,543,499 | $ 2,037,320 | $ 0 |
Statement of Cash Flows
Statement of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||
Net income | $ 880,036 | $ 963,296 | $ 741,079 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 463,757 | 433,480 | 366,566 |
Impairment of assets | 170,128 | 0 | 0 |
Allowance for equity funds used during construction (equity AFUDC) | (14,889) | (28,785) | (87,111) |
Regulatory credit resulting from tax rate changes | (30,752) | (24,202) | (20,867) |
Equity in earnings of unconsolidated affiliates | 0 | (3,216) | (1,068) |
Distributions from unconsolidated affiliates | 0 | 4,908 | 3,250 |
Changes in operating assets and liabilities: | |||
Receivables - affiliates | (342) | 582 | 91 |
Receivables - trade and other | 14,742 | (52,307) | (30,776) |
Transportation and exchange gas receivable | 1,733 | (1,845) | (1,310) |
Regulatory assets - current | 6,579 | 26,330 | 1,379 |
Regulatory assets - non-current | 11,361 | 3,622 | (8,605) |
Inventories | 8,695 | (1,787) | (23,178) |
Payables - affiliates | (15,064) | (2,981) | 7,307 |
Payables - trade | (915) | (18,842) | (35,869) |
Accrued liabilities | 22,881 | (1,723) | 40,993 |
Asset retirement obligations | 12,027 | 15,713 | 24,659 |
Reserve for rate refunds | (188,842) | 188,842 | 0 |
Deferred Revenue | (10,568) | (10,566) | (10,565) |
Other, net | (36,990) | (36,365) | 10,317 |
Net cash provided by operating activities | 1,293,577 | 1,454,154 | 976,292 |
Cash flows from financing activities: | |||
Proceeds from long-term debt | 1,195,629 | 0 | 993,440 |
Proceeds from other financing obligations | 8,725 | 41,513 | 50,269 |
Retirement of long-term debt | 0 | 0 | (250,000) |
Payments on other financing obligations | (20,366) | (17,436) | (3,705) |
Payments of debt issuance costs | (11,441) | 0 | (10,148) |
Cash distributions to parent | (1,020,000) | (824,000) | (490,000) |
Cash contributions from parent | 115,000 | 0 | 340,000 |
Advances from affiliate, net | (252,549) | 252,549 | 0 |
Net cash provided by (used in) financing activities | 14,998 | (547,374) | 629,856 |
Cash flows from investing activities: | |||
Capital expenditures | (649,459) | (901,374) | (2,326,672) |
Contributions and advances for construction costs | 35,284 | 47,034 | 408,912 |
Disposal of property, plant and equipment, net | (43,900) | (45,720) | (26,469) |
Advances to affiliate, net | (642,734) | 33,034 | 362,213 |
Contributions to unconsolidated affiliates | 0 | 12,250 | 0 |
Purchase of ARO Trust investments | (53,357) | (72,946) | (51,793) |
Proceeds from sale of ARO Trust investments | 45,591 | 45,479 | 27,661 |
Other, net | 0 | 37 | 0 |
Net cash used in investing activities | (1,308,575) | (906,780) | (1,606,148) |
Increase (decrease) in cash | 0 | 0 | 0 |
Cash at beginning of period | 0 | 0 | 0 |
Cash at end of period | 0 | 0 | 0 |
Increase to property, plant and equipment, exclusive of equity AFUDC | (582,896) | (854,761) | (2,085,888) |
Changes in related accounts payable and accrued liabilities | (66,563) | (46,613) | (240,784) |
Capital expenditures | (649,459) | (901,374) | (2,326,672) |
Supplemental Cash Flow Elements [Abstract] | |||
Interest (exclusive of amount capitalized) | 299,470 | 268,559 | 168,418 |
Income taxes | $ 352 | $ 76 | $ 632 |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Corporate Structure and Control In this report, Transco (which includes Transcontinental Gas Pipe Line Company, LLC and, unless the context otherwise requires, all of our majority-owned subsidiaries) is at times referred to in the first person as “we,” “us” or “our.” Transco was indirectly owned by Williams Partners L.P. (WPZ), a publicly traded Delaware limited partnership, which was consolidated by The Williams Companies, Inc. (Williams). On August 10, 2018, Williams completed a merger with WPZ, pursuant to which Williams acquired all of the publicly held outstanding common units of WPZ in exchange for shares of Williams' common stock (WPZ Merger). Williams continued as the surviving entity. Transco is now indirectly owned by Williams. Transco is a single member limited liability company, and as such, single member losses are limited to the amount of its investment. Nature of Operations We are an interstate natural gas transmission company that owns and operates a natural gas pipeline system extending from Texas, Louisiana, Mississippi and the Gulf of Mexico through Alabama, Georgia, South Carolina, North Carolina, Virginia, Maryland, Delaware, Pennsylvania and New Jersey to the New York City metropolitan area. The system serves customers in Texas and the 12 southeast and Atlantic seaboard states mentioned above, including major metropolitan areas in Georgia, Washington D.C., Maryland, North Carolina, New York, New Jersey and Pennsylvania. Regulatory Accounting We are regulated by the Federal Energy Regulatory Commission (FERC). Accounting Standards Codification (ASC) Regulated Operations, (Topic 980), provides that certain costs that would otherwise be charged to expense should be deferred as regulatory assets, based on the expected recovery from customers in future rates. Likewise, certain actual or anticipated credits that would otherwise reduce expense should be deferred as regulatory liabilities, based on the expected return to customers in future rates. Management's expected recovery of deferred costs and return of deferred credits generally results from specific decisions by regulators granting such ratemaking treatment. We record certain incurred costs and obligations as regulatory assets or liabilities if, based on regulatory orders or other available evidence, it is probable that the costs or obligations will be included in amounts allowable for recovery or refunded in future rates. Accounting for businesses that are regulated and apply the provisions of Topic 980 can differ from the accounting requirements for non-regulated businesses. Transactions that are recorded differently as a result of regulatory accounting requirements include the capitalization of an equity return component on regulated capital projects, capitalization of other project costs, retirements of general plant assets, employee related benefits, environmental costs, negative salvage, asset retirement obligations (ARO), and other costs and taxes included in, or expected to be included in, future rates. As a rate-regulated entity, our management has determined that it is appropriate to apply the accounting prescribed by Topic 980 and, accordingly, the accompanying consolidated financial statements include the effects of the types of transactions described above that result from regulatory accounting requirements. Basis of Presentation Williams’ acquisition of us in 1995 was accounted for using the purchase method of accounting. Accordingly, an allocation of the purchase price was assigned to our assets and liabilities based on their estimated fair values. The purchase price allocation to us primarily consisted of a $1.5 billion allocation to property, plant and equipment and adjustments to deferred taxes based upon the book basis of the net assets recorded as a result of the acquisition. The amount allocated to property, plant and equipment is being depreciated on a straight-line basis over 40 years, the estimated useful lives of these assets at the date of acquisition, at approximately $35 million per year. At December 31, 2020, the remaining property, plant and equipment allocation was approximately $0.5 billion. Current FERC policy does not permit us to recover through rates amounts in excess of original cost. Principles of Consolidation The consolidated financial statements include our accounts and the accounts of the subsidiaries we control. Companies in which we and our subsidiaries own 20 percent to 50 percent of the voting common stock or otherwise exercise significant influence over operating and financial policies of the company are accounted for under the equity method. The equity method investments prior to December 31, 2019 (See Note 9) consist of Cardinal Pipeline Company, LLC (Cardinal) with ownership interest of approximately 45 percent and Pine Needle LNG Company, LLC (Pine Needle) with ownership interest of 35 percent. We received distributions associated with our equity method investments totaling $4.9 million and $3.2 million in 2019 and 2018, respectively. We made a $12.3 million contribution to Pine Needle in the second quarter of 2019. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Estimates and assumptions which, in the opinion of management, are significant to the underlying amounts included in the financial statements and for which it would be reasonably possible that future events or information could change those estimates include: 1) revenues subject to refund; 2) litigation-related contingencies; 3) environmental remediation obligations; 4) impairment assessments of long-lived assets; 5) depreciation; and 6) asset retirement obligations. Revenue Recognition Our customers are comprised of public utilities, municipalities, gas marketers and producers, intrastate pipelines, direct industrial users, and electrical power generators. Service revenue contracts from our gas pipeline business contain a series of distinct services, with the majority of our contracts having a single performance obligation that is satisfied over time as the customer simultaneously receives and consumes the benefits provided by our performance. Most of our natural gas sales contracts have a single performance obligation with revenue recognized at a point in time when the natural gas has been sold and delivered to the customer. Certain customers reimburse us for costs we incur associated with construction of property, plant, and equipment utilized in our operations. As a rate-regulated entity applying Topic 980, we follow FERC guidelines with respect to reimbursement of construction costs. FERC tariffs only allow for cost reimbursement and are non-negotiable in nature; thus, in our judgment, the construction activities do not represent an ongoing major and central operation of our gas pipelines business and are not within the scope of Accounting Standards Update (ASU) 2014-09, Revenues from Contracts with Customers (ASC 606). Accordingly, cost reimbursements are treated as a reduction to the cost of the constructed asset. Operating Revenues We are subject to regulation by certain state and federal authorities, including the FERC, with revenue derived from both firm and interruptible transportation and storage contracts. Firm transportation and storage agreements provide for a fixed reservation charge based on the pipeline or storage capacity reserved, and a commodity charge based on the volume of natural gas delivered/stored, each at rates specified in our FERC tariffs or as negotiated with our customers, with contract terms that are generally long-term in nature. Most of our long-term contracts contain an evergreen provision, which allows the contracts to be extended for periods primarily up to one year in length an indefinite number of times following the specified contract term and until terminated generally by either us or the customer. Interruptible transportation and storage agreements provide for a volumetric charge based on actual commodity transportation or storage utilized in the period in which those services are provided, and the contracts are generally limited to one month periods or less. Our performance obligations include the following: • Firm transportation or storage under firm transportation and storage contracts - an integrated package of services typically constituting a single performance obligation, which includes standing ready to provide such services and receiving, transporting or storing (as applicable), and redelivering commodities; • Interruptible transportation and storage under interruptible transportation and storage contracts - an integrated package of services typically constituting a single performance obligation once scheduled, which includes receiving, transporting or storing (as applicable), and redelivering commodities. In situations where, in our judgment, we consider the integrated package of services as a single performance obligation, which represents a majority of our contracts with customers, we do not consider there to be multiple performance obligations because the nature of the overall promise in the contract is to stand ready (with regard to firm transportation and storage contracts), receive, transport or store, and redeliver natural gas to the customer; therefore, revenue is recognized over time upon satisfaction of our daily stand ready performance obligation. We recognize revenues for reservation charges over the performance obligation period, which is the contract term, regardless of the volume of natural gas that is transported or stored. Revenues for commodity charges from both firm and interruptible transportation services and storage services are recognized when natural gas is delivered at the agreed upon delivery point or when natural gas is injected or withdrawn from the storage facility because they specifically relate to our efforts to provide these distinct services. Generally, reservation charges and commodity charges are recognized as revenue in the same period they are invoiced to our customers. As a result of the ratemaking process, certain amounts collected by us may be subject to refunds upon the issuance of final orders by the FERC in pending rate proceedings. We use judgment to record estimates of rate refund liabilities considering our and other third-party regulatory proceedings, advice of counsel, and other risks. Natural Gas Sales In the course of providing transportation services to customers, we may receive different quantities of natural gas from customers than the quantities delivered on behalf of those customers. The resulting imbalances are primarily settled through the purchase or sale of natural gas with each customer under terms provided for in our FERC tariffs. Revenue is recognized from the sale of natural gas upon settlement of the transportation and exchange imbalances (See Gas Imbalances in this Note). Contract Liabilities Our contract liabilities consist of advance payments from customers, which include prepayments, and other billings for which future services are to be provided under the contract. These amounts are deferred until recognized in revenue when the associated performance obligation has been satisfied, which is primarily straight-line over the remaining contractual service periods, and are classified as current or non-current according to when such amounts are expected to be recognized. Current and non-current contract liabilities are included within Accrued Liabilities and Other Long-Term Liabilities - Deferred revenue , respectively, in our Consolidated Balance Sheet. Contracts requiring advance payments and the recognition of contract liabilities are evaluated to determine whether the advance payments provide us with a significant financing benefit. This determination is based on the combined effect of the expected length of time between when we transfer the promised good or service to the customer and when the customer pays for those goods or services and the prevailing interest rates. We have assessed our contracts and determined none of our contracts contain a significant financing component. Leases We are a lessee through noncancellable lease agreements for property and equipment consisting primarily of buildings, land, vehicles, and equipment used in both our operations and administrative functions. We recognize a lease liability with an offsetting right-of-use asset in our Consolidated Balance Sheet for operating leases based on the present value of the future lease payments. As an accounting policy, we have elected to combine lease and nonlease components for all classes of leased assets in our calculation of the lease liability and the offsetting right-of-use asset. Our lease agreements require both fixed and variable periodic payments, with initial terms typically ranging from one year to 15 years, but a certain land lease has a term of 108 years. Payment provisions in certain of our lease agreements contain escalation factors which may be based on stated rates or a change in a published index at a future time. The amount by which a lease escalates based on the change in a published index, which is not known at lease commencement, is considered a variable payment and is not included in the present value of the future lease payments, which only includes those that are stated or can be calculated based on the lease agreement at lease commencement. In addition to the noncancellable periods, many of our lease agreements provide for one or more extensions of the lease agreement for periods ranging from one year in length to an indefinite number of times following the specified contract term. Other lease agreements provide for extension terms that allow us to utilize the identified leased asset for an indefinite period of time so long as the asset continues to be utilized in our operations. In consideration of these renewal features, we assess the term of the lease agreements, which includes using judgment in the determination of which renewal periods and termination provisions, when at our sole election, will be reasonably certain of being exercised. Periods after the initial term or extension terms that allow for either party to the lease to cancel the lease are not considered in the assessment of the lease term. Additionally, we have elected to exclude leases with an original term of one year or less, including renewal periods, from the calculation of the lease liability and the offsetting right-of-use asset. We used judgment in determining the discount rate upon which the present value of the future lease payments is determined. This rate is based on a collateralized interest rate corresponding to the term of the lease agreement using company, industry, and market information available. Environmental Matters We are subject to federal, state, and local environmental laws and regulations. Environmental expenditures are expensed or capitalized depending on their economic benefit and potential for rate recovery. We believe that any expenditures required to meet applicable environmental laws and regulations are prudently incurred in the ordinary course of business and such expenditures would be permitted to be recovered through rates. Property, Plant and Equipment Property, plant and equipment is recorded at cost. The carrying values of these assets are also based on estimates, assumptions and judgments relative to capitalized costs, useful lives and salvage values. These estimates, assumptions and judgments reflect FERC regulations, as well as historical experience and expectations regarding future industry conditions and operations. The FERC identifies installation, construction and replacement costs that are to be capitalized. All other costs are expensed as incurred. Gains or losses from the ordinary sale or retirement of property, plant and equipment are credited or charged to accumulated depreciation; certain other gains or losses are recorded in operating income. We provide for depreciation under the composite (group) method at straight-line FERC prescribed rates that are applied to the cost of the group for transmission facilities, production and gathering facilities and storage facilities. Under this method, assets with similar lives and characteristics are grouped and depreciated as one asset. Included in our depreciation rates is a negative salvage component (net cost of removal) that we currently collect in rates. Our depreciation rates are subject to change each time we file a general rate case with the FERC. Depreciation rates used for major regulated gas plant facilities at December 31, 2020, 2019 and 2018 are as follows: Category of Property 2020-2019 (1) 2018 Gathering facilities 0% - 1.00% 1.35% - 2.50% Storage facilities 1.86% - 2.05% 2.10% - 2.25% Onshore transmission facilities 2.50% - 7.13% 2.61% - 5.00% Offshore transmission facilities 1.25% - 1.25% 1.20% - 1.20% (1) Changes in depreciation rates in 2019 were due to placing into effect the rates in Docket No. RP18-1126 on March 1, 2019. We record a liability and increase the basis in the underlying asset for the present value of each expected future Asset Retirement Obligations (ARO) at the time the liability is initially incurred, typically when the asset is acquired or constructed. Measurements of AROs include, as a component of future expected costs, an estimate of the price that a third party would demand, and could expect to receive, for bearing the uncertainties inherent in the obligations, sometimes referred to as a market-risk premium. The ARO asset is depreciated in a manner consistent with the expected timing of the future abandonment of the underlying physical assets. We measure changes in the liability due to passage of time by applying an interest method of allocation. The depreciation of the ARO asset and accretion of the ARO liability are recognized as an increase to a regulatory asset, as management expects to recover such amounts in future rates. The regulatory asset is amortized commensurate with our collection of these costs in rates. Impairment of Long-lived Assets We evaluate our long-lived assets, including capitalized project development costs, for impairment when events or changes in circumstances indicate, in our management's judgment, that the carrying value of such assets may not be recoverable. When an indicator of a potential impairment has occurred, we compare our management's estimate of undiscounted future cash flows attributable to the assets to the carrying value of the assets to determine whether an impairment has occurred. We apply a probability-weighted approach to consider the likelihood of different cash flow assumptions. If an impairment of the carrying value has occurred, we determine the amount of the impairment recognized in the financial statements by estimating the fair value of the assets and recording a loss for the amount that the carrying value exceeds the estimated fair value. For assets identified to be disposed of in the future and considered held for sale in accordance with the ASC Property, Plant, and Equipment (Topic 360), we compare the carrying value to the estimated fair value less the cost to sell to determine if recognition of an impairment is required. Until the assets are disposed of, the estimated fair value, which includes estimated cash flows from operations until the assumed date of sale, is recalculated when related events or circumstances change. Judgments and assumptions are inherent in our estimate of undiscounted future cash flows used to determine recoverability of an asset and the estimate of an asset’s fair value used to calculate the amount of impairment to recognize. Allowance for Funds Used During Construction Allowance for funds used during construction (AFUDC) represents the estimated cost of borrowed and equity funds applicable to utility plant in process of construction and are included as a cost of property, plant and equipment because it constitutes an actual cost of construction under established regulatory practices. The FERC has prescribed a formula to be used in computing separate allowances for borrowed and equity AFUDC. The allowance for borrowed funds used during construction was $7.7 million, $10.5 million, and $29.2 million, for 2020, 2019 and 2018, respectively. The allowance for equity funds was $14.9 million, $28.8 million, and $87.1 million, for 2020, 2019 and 2018, respectively. Income Taxes We are a natural gas company organized as a pass-through entity and our taxable income or loss is consolidated on the federal income tax return of our parent, Williams. We generally are treated as a pass-through entity for state and local income tax purposes, and those taxes are generally borne on a consolidated basis by Williams. Net income for financial statement purposes may differ significantly from taxable income of Williams as a result of differences between the tax basis and financial reporting basis of assets and liabilities. Accounts Receivable and Allowance for Doubtful Receivables Accounts receivable are stated at the historical carrying amount net of reserves or write-offs. We estimate the reserves, considering current expected credit losses (as discussed below in Accounting Standards Issued and Adopted). We do not offer extended payment terms and typically receive payment within one month. We consider receivables past due if full payment is not received by the contractual due date. Our credit risk exposure in the event of nonperformance by the other parties is limited to the face value of the receivables. We perform ongoing credit evaluations of our customers’ financial condition and require collateral from our customers, if necessary. Due to our customer base, we have not historically experienced recurring credit losses in connection with our receivables. Gas Imbalances In the course of providing transportation services to customers, we may receive different quantities of gas from shippers than the quantities delivered on behalf of those shippers. Additionally, we transport gas on various pipeline systems which may deliver different quantities of gas on behalf of us than the quantities of gas received from us. These transactions result in gas transportation and exchange imbalance receivables and payables which are recovered or repaid in cash or through the receipt or delivery of gas in the future and are recorded in the accompanying Consolidated Balance Sheet. Settlement of imbalances requires agreement between the pipelines and shippers as to allocations of volumes to specific transportation contracts and timing of delivery of gas based on operational conditions. Our tariff includes a method whereby most transportation imbalances are settled on a monthly basis. Each month a portion of the imbalances are not identified to specific parties and remain unsettled. These are generally identified to specific parties and settled in subsequent periods. We believe that amounts that remain unidentified to specific parties and unsettled at year end are valid balances that will be settled with no material adverse effect upon our financial position, results of operations or cash flows. Management has implemented a policy of continuing to carry any unidentified transportation and exchange imbalances on the books for a three-year period. At the end of the three year period a final assessment will be made of their continued validity. Absent a valid reason for maintaining the imbalance, any remaining balance will be recognized in income. Certain imbalances are being recovered or repaid in cash or through the receipt or delivery of gas upon agreement of the parties as to the allocation of the gas volumes, and as permitted by pipeline operating conditions. These imbalances have been classified as current assets and current liabilities at December 31, 2020 and 2019. We utilize the average cost method of accounting for gas imbalances. Deferred Cash Out Most transportation imbalances are settled in cash on a monthly basis (cash-out). In accordance with our tariff, revenues received from the cash-out of transportation imbalances in excess of costs incurred are deferred and offset by the deferral of costs incurred in excess of revenues received. At the end of each annual August through July reporting period, if the cumulative revenues received exceed the costs incurred, the over recovered amounts are refunded. If the cumulative revenues received are less than the costs incurred, the net under recovered amounts are carried forward and offset against any future net over recoveries that may occur in a subsequent annual reporting period. Gas Inventory We utilize the last-in, first-out (LIFO) method of accounting for inventory gas in storage. At December 31, 2020 and 2019, Gas in Storage, at LIFO, was zero. The basis for determining current cost at the end of each year is the December monthly average gas price delivered to pipelines in Texas and Louisiana. We utilize the average cost method of accounting for gas available for customer nomination. Liquefied natural gas in storage is valued at original cost. Materials and Supplies Inventory All inventories are stated at average cost. We perform an annual review of Materials and Supplies inventories, including a quarterly analysis of parts that may no longer be useful due to planned replacements of compressor engines and other components on our system. Based on this assessment, we record a reserve for the value of the inventory which can no longer be used for maintenance and repairs on our pipeline. There was a minimal reserve at December 31, 2020 and 2019. Contingent Liabilities We record liabilities for estimated loss contingencies, including environmental matters, when we assess that a loss is probable and the amount of the loss can be reasonably estimated. These liabilities are calculated based upon our assumptions and estimates with respect to the likelihood or amount of loss and upon advice of legal counsel, engineers, or other third parties regarding the probable outcomes of the matters. These calculations are made without consideration of any potential recovery from third-parties. We recognize insurance recoveries or reimbursements from others when realizable. Revisions to these liabilities are generally reflected in income when new or different facts or information become known or circumstances change that affect the previous assumptions or estimates. Pension and Other Postretirement Benefits We do not have employees. Certain of the costs charged to us by Williams associated with employees who directly support us include costs related to Williams’ pension and other postretirement benefit plans. (See Note 8.) Although the underlying benefit plans of Williams are single-employer plans, we follow multiemployer plan accounting whereby the amount charged to us and thus paid by us, is based on our share of net periodic benefit cost. Cash Flows from Operating Activities and Cash Equivalents We use the indirect method to report cash flows from operating activities, which requires adjustments to net income to reconcile to net cash flows provided by operating activities. We include short-term, highly-liquid investments that have an original maturity of three months or less as cash equivalents. Accounting Standards Issued and Adopted In June 2016, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) 2016-13 “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (ASU 2016-13). ASU 2016-13 changed the impairment model for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans, and other instruments, entities are required to use a forward-looking “expected loss” model that generally will result in the earlier recognition of allowances for losses. We adopted ASU 2016-13 effective January 1, 2020, which primarily applied to our short-term trade receivables. There was no cumulative effect adjustment to retained earnings upon adoption. The majority of our trade receivable balances are due within 30 days. We monitor the credit quality of our counterparties through review of collection trends, credit ratings, and other analysis, such as bankruptcy monitoring. Financial assets are evaluated as one pool. Changes in counterparty risk factors could lead to reassessment of the composition of our financial assets as one pool. We calculate our allowance for credit losses incorporating an aging method. In estimating our expected credit losses, we utilized historical loss rates over many years. Our expected credit loss estimate considered both internal and external forward-looking commodity price expectations, as well as counterparty credit ratings, and factors impacting their near-term liquidity. Past due accounts are generally written off against the allowance for doubtful accounts only after all collection attempts have been exhausted. We do not have a material amount of significantly aged receivables at December 31, 2020. |
Revenue Recognition (Notes)
Revenue Recognition (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue Recognition [Abstract] | |
Revenue from Contract with Customer [Text Block] | 2. REVENUE RECOGNITION Revenue by Category Our revenue disaggregation by major service line includes Natural gas sales , Natural gas transportation , Natural gas storage , and Other , which are separately presented on the Condensed Consolidated Statement of Comprehensive Income. Contract Liabilities The following table presents a reconciliation of our contract liabilities: December 31, 2020 December 31, 2019 (Thousands) Balance at beginning of period $ 226,164 $ 236,730 Recognized in revenue (10,568) (10,566) Balance at end of period $ 215,596 $ 226,164 Remaining Performance Obligations Our remaining performance obligations primarily include reservation charges on contracted capacity on our firm transportation and storage contracts with customers. Amounts from certain contracts included in the table below, which are subject to the periodic review and approval by the FERC, reflect the rates for such services in our current FERC tariffs, net of estimated reserve for refund, for the life of the related contracts; however, these rates may change based on future tariffs approved by the FERC and the amount and timing of these changes is not currently known. This table excludes the variable consideration component for commodity charges. Certain of our contracts contain evergreen provisions for periods beyond the initial term of the contract. The remaining performance obligation as of December 31, 2020, do not consider potential future performance obligations for which the renewal has not been exercised. The table below also does not include contracts with customers for which the underlying facilities have not received FERC authorization to be placed into service. The following table presents the amount of the contract liabilities balance expected to be recognized as revenue when performance obligations are satisfied and the transaction price allocated to the remaining performance obligations under certain contracts as of December 31, 2020. Contract Liabilities Remaining Performance Obligations (Thousands) 2021 $ 10,566 $ 2,349,047 2022 10,566 2,196,621 2023 10,566 2,040,685 2024 10,568 1,487,964 2025 10,566 1,453,924 Thereafter 162,764 12,231,530 Total $ 215,596 $ 21,759,771 Accounts Receivable Receivables from contracts with customers are included within Receivables - Trade and Receivables - Affiliates and receivables that are not related to contracts with customers are included within the balance of Receivables - Advances to affiliate and Receivables - Other |
Leases (Notes)
Leases (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Lessee, Operating Leases [Text Block] | LEASES We are a lessee through non-cancellable lease agreements for property and equipment consisting primarily of buildings, land, vehicles, and equipment used in both our operations and administrative functions. Twelve Months Ended 2020 2019 (Thousands) Lease Cost: Operating lease cost $ 9,691 $ 10,276 Variable lease cost 3,135 6,867 Total lease cost $ 12,826 $ 17,143 Cash paid for amounts included in the measurement of operating lease liabilities $ 3,690 $ 9,986 December 31, 2020 2019 (Thousands) Other Information: Right-of-use assets $ 78,899 $ 84,979 Operating lease liabilities: Current (included in Accrued liabilities - Other in our Consolidated Balance Sheet) $ 6,222 $ 811 Lease liability $ 78,688 $ 84,528 Weighted-average remaining lease term - operating leases (years) 15 15 Weighted-average discount rate - operating leases 4.66 % 4.65 % Prior to adopting ASU 2016-02, total rent expense was $10.8 million in 2018 and primarily included in Operation and maintenance and Administrative and general expenses in the Consolidated Statement of Comprehensive Income. As of December 31, 2020, the following table represents our operating lease maturities, including renewal provisions that we have assessed as being reasonably certain of exercise, for each of the years ended December 31: (Thousands) 2021 $ 9,471 2022 9,611 2023 9,614 2024 9,316 2025 9,065 Thereafter 74,330 Total future lease payments 121,407 Less amount representing interest 36,497 Total obligations under operating leases $ 84,910 |
Contingent Liabilities and Comm
Contingent Liabilities and Commitments (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingent Liabilities and Commitments | CONTINGENT LIABILITIES AND COMMITMENTS Rate Matters General rate case (Docket No. RP18-1126) On August 31, 2018, we filed a general rate case with the FERC for an overall increase in rates and to comply with the terms of the settlement in our prior rate case to file a rate case no later than August 31, 2018. On September 28, 2018, the FERC issued an order accepting and suspending our general rate filing to be effective March 1, 2019, subject to refund and the outcome of a hearing, except that rates for certain services that were proposed as overall rate decreases were accepted, without suspension, to be effective October 1, 2018. On December 31, 2019, we filed a stipulation and agreement with the FERC to resolve all issues in this proceeding without the need for a hearing. On March 24, 2020, the FERC approved the settlement, which became effective on June 1, 2020. Refunds of $284.3 million were issued on July 1, 2020. Notice of Inquiry (Docket No. PL19-4-000). On May 21, 2020, the FERC issued a “Policy Statement on Determining Return on Equity for Natural Gas and Oil Pipelines” (Policy Statement) in Docket No. PL19-4-000 adopting changes to its policies concerning the calculation of a public utility return on equity (ROE). In this Policy Statement, the FERC revised its ROE policy for natural gas pipelines and oil pipelines to provide that the FERC will determine a pipeline’s ROE by averaging the results of the Discounted Cash Flow model and the Capital Asset Pricing Model, with each weighted equally. The FERC declined to adopt any additional policy changes at this time and will address all other issues concerning the determination of a pipeline’s ROE as they arise in future proceedings. Our next general rate case must be filed no later than August 30, 2024. Environmental Matters We have had studies underway for many years to test some of our facilities for the presence of toxic and hazardous substances such as polychlorinated biphenyls (PCBs) and mercury to determine to what extent, if any, remediation may be necessary. We have also similarly evaluated past on-site disposal of hydrocarbons at a number of our facilities. We have worked closely with and responded to data requests from the U.S. Environmental Protection Agency (EPA) and state agencies regarding such potential contamination of certain of our sites. We are conducting environmental assessments and implementing a variety of remedial measures that may result in increases or decreases in the total estimated costs. At December 31, 2020, we had a balance of approximately $2.4 million for the expense portion of these estimated costs, $0.7 million recorded in Accrued liabilities and $1.7 million recorded in Other Long-Term Liabilities - Other in the Consolidated Balance Sheet. At December 31, 2019, we had a balance of approximately $2.5 million for the expense portion of these estimated costs, $1.2 million recorded in Accrued liabilities and $1.3 million recorded in Other Long-Term Liabilities - Other in the Consolidated Balance Sheet. We have been identified as a potentially responsible party (PRP) at various Superfund and state waste disposal sites. Based on present volumetric estimates and other factors, our estimated aggregate exposure for remediation of these sites is less than $0.5 million. The estimated remediation costs for all of these sites are included in the environmental liabilities discussed above. Liability under the Comprehensive Environmental Response, Compensation and Liability Act and applicable state law can be joint and several with other PRPs. Although volumetric allocation is a factor in assessing liability, it is not necessarily determinative; thus, the ultimate liability could be substantially greater than the amounts described above. The EPA and various state regulatory agencies routinely promulgate and propose new rules, and issue updated guidance to existing rules. These rulemakings include, but are not limited to, rules for reciprocating internal combustion engine and combustion turbine maximum achievable control technology, air quality standards for one-hour nitrogen dioxide emissions, and volatile organic compound and methane new source performance standards impacting design and operation of storage vessels, pressure valves, and compressors. The EPA previously issued its rule regarding National Ambient Air Quality Standards for ground-level ozone. We are monitoring the rule’s implementation as it will trigger additional federal and state regulatory actions that may impact our operations. Implementation of the regulations is expected to result in impacts to our operations and increase the cost of additions to Total property, plant and equipment, net in the Consolidated Balance Sheet for both new and existing facilities in affected areas. We are unable to reasonably estimate the cost of additions that may be required to meet the regulations at this time due to uncertainty created by various legal challenges to these regulations and the need for further specific regulatory guidance. We consider prudently incurred environmental assessment and remediation costs and the costs associated with compliance with environmental standards to be recoverable through rates. To date, we have been permitted recovery of environmental costs, and it is our intent to continue seeking recovery of such costs through future rate filings. Other Matters Various other proceedings are pending against us and are considered incidental to our operations. Summary We estimate that for all matters for which we are able to reasonably estimate a range of loss, including those noted above and others that are not individually significant, our aggregate reasonably possible losses beyond amounts accrued for all of our contingent liabilities are immaterial to our expected future annual results of operations, liquidity and financial position. These calculations have been made without consideration of any potential recovery from third parties. We have disclosed all significant matters for which we are unable to reasonably estimate a range of possible loss. Other Commitments We have commitments for construction and acquisition of property, plant and equipment of approximately $14 million at December 31, 2020. |
Debt and Financing Arrangements
Debt and Financing Arrangements (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt, Financing Arrangements and Leases | DEBT AND FINANCING ARRANGEMENTS Long-Term Debt At December 31, 2020 and 2019, long-term debt outstanding was as follows (in thousands): 2020 2019 Debentures: 7.08% due 2026 $ 7,500 $ 7,500 7.25% due 2026 200,000 200,000 Total debentures 207,500 207,500 Notes: 7.85% due 2026 1,000,000 1,000,000 4.0% due 2028 400,000 400,000 3.25% due 2030 700,000 — 5.4% due 2041 375,000 375,000 4.45% due 2042 400,000 400,000 4.6% due 2048 600,000 600,000 3.95% due 2050 500,000 — Total notes 3,975,000 2,775,000 Other financing obligations 1,104,143 1,115,980 Total long-term debt, including current portion 5,286,643 4,098,480 Unamortized debt issuance costs (32,505) (22,876) Unamortized debt premium and discount, net (14,358) (10,634) Long-term debt due within one year (22,640) (20,180) Total long-term debt $ 5,217,140 $ 4,044,790 Aggregate minimum maturities (face value) applicable to long-term debt outstanding at December 31, 2020, for the next five years, are as follows (in thousands): 2021: Other financing obligations $ 22,640 2022: Other financing obligations $ 24,762 2023: Other financing obligations $ 27,082 2024: Other financing obligations $ 29,621 2025: Other financing obligations $ 32,397 No property is pledged as collateral under any of our long-term debt issues. Restrictive Debt Covenants At December 31, 2020, none of our debt instruments restrict the amount of distributions to our parent, provided, however, that under the credit facility described below, we are restricted from making distributions to our parent during an event of default if we have directly incurred indebtedness under the credit facility. Our debt agreements contain restrictions on our ability to incur secured debt beyond certain levels and to guarantee certain indebtedness. The indenture governing our $1 billion of 7.85 percent Senior Notes due 2026 further restricts our ability to guarantee certain indebtedness. Issuance and Retirement of Long-Term Debt On May 8, 2020, we issued $700 million of 3.25 percent senior unsecured notes due 2030 and $500 million of 3.95 percent senior unsecured notes due 2050 to investors in a private debt placement. As part of the issuance, we entered into a registration rights agreement with the initial purchasers of the unsecured notes. Under the terms of the agreement, we were obligated to file and consummate a registration statement for an offer to exchange the notes for a new issue of substantially identical notes registered under the Securities Act of 1933, as amended, within 365 days from closing and to use commercially reasonable efforts to complete the exchange offer. In the fourth quarter of 2020, we filed the registration statement and completed the exchange offer. Other Financing Obligations During the construction of the Atlantic Sunrise and Dalton Expansion projects, we received funding from co-owners for their proportionate share of construction costs. Amounts received were recorded in Advances for construction costs and the costs associated with construction were capitalized in our Consolidated Balance Sheet. Upon placing these projects into service we began utilizing the co-owners' undivided interest in the assets, including the associated pipeline capacity, and reclassified the funding previously received from co-owners from Advances for construction costs to Long-Term Debt . The obligations, which mature in 2038 and 2052, respectively, require monthly interest and principal payments and both bear an interest rate of approximately 9 percent. Dalton Expansion Project During 2019, we received $0.7 million of additional funding from a co-owner for its proportionate share of construction costs related to its undivided ownership interest in the Dalton lateral. At December 31, 2020, the amount included in Long-Term Debt on our Consolidated Balance Sheet for this financing obligation is $254.4 million, and the amount included in Long-term debt due within one year on our Consolidated Balance Sheet for this financing obligation is $2.3 million. At December 31, 2019, the amount included in Long-Term Debt on our Consolidated Balance Sheet for this financing obligation is $256.8 million, and the amount included in Long-term debt due within one year on our Consolidated Balance Sheet for this financing obligation is $2.1 million. Atlantic Sunrise Project During 2020 and 2019, we received $8.7 million and $40.8 million, respectively, of additional funding from a co-owner for its proportionate share of construction costs related to its undivided ownership interest in Atlantic Sunrise. During the fourth quarter of 2019, we also increased our financing obligation by $25 million associated with a payment received by Williams pursuant to a contract settlement with a co-owner of the Atlantic Sunrise project (See Note 9). At December 31, 2020, the amount included in Long-Term Debt on our Consolidated Balance Sheet for this financing obligation is $827.1 million, and the amount included in Long-term debt due within one year on our Consolidated Balance Sheet for this financing obligation is $20.3 million. At December 31, 2019, the amount included in Long-Term Debt on our Consolidated Balance Sheet for this financing obligation is $839.0 million, and the amount included in Long-term debt due within one year on our Consolidated Balance Sheet for this financing obligation is $18.1 million. Long-Term Debt Due Within One Year The long-term debt due within one year at December 31, 2020 and 2019 are associated with the previously described other financing obligations. Credit Facility In 2018, we, along with Williams and Northwest (the borrowers), the lenders named therein, and an administrative agent entered into a credit agreement (Credit Agreement) with aggregate commitments available of $4.5 billion, with up to an additional $500 million increase in aggregate commitments available under certain circumstances. We and Northwest are each subject to a $500 million borrowing sublimit. The facility made available under the Credit Agreement is initially available for five years from the Credit Agreement Effective Date (the Maturity Date). The borrowers may request an extension of the Maturity Date for an additional one-year period up to two times, to allow a Maturity Date as late as the seventh anniversary of the Credit Agreement Effective Date, subject to certain conditions. The Credit Agreement allows for same day swingline borrowings up to an aggregate amount of $200 million, subject to other utilization of aggregate commitments under the Credit Agreement. Letter of credit commitments of $1.0 billion are, subject to the $500 million borrowing sublimit applicable to us and Northwest, available to the borrowers. At December 31, 2020 no letters of credit have been issued and no loans to Williams were outstanding under the credit facility. Measured as of December 31, 2020, we are in compliance with our financial covenant under the credit facility. Various covenants may limit, among other things, a borrower's and its material subsidiaries' ability to grant certain liens supporting indebtedness, merge or consolidate, sell all or substantially all of its assets, enter into certain affiliate transactions, make certain distributions during an event of default, enter into certain restrictive agreements, and allow any material change in the nature of its business. If an event of default with respect to a borrower occurs under the credit facility, the lenders will be able to terminate the commitments for the respective borrowers and accelerate the maturity of any loans of the defaulting borrower under the credit facility agreement and exercise other rights and remedies. Other than swing line loans, each time funds are borrowed, the applicable borrower may choose from two methods of calculating interest: a fluctuating base rate equal to Citibank N.A.'s alternate base rate plus an applicable margin or a periodic fixed rate equal to the London Interbank Offered Rate plus an applicable margin. We are required to pay a commitment fee based on the unused portion of the credit facility. The applicable margin and the commitment fee are determined by reference to a pricing schedule based on the applicable borrower's senior unsecured long-term debt ratings. Williams participates in a commercial paper program and Williams management considers amounts outstanding under this program to be a reduction of available capacity under the credit facility. The program allows a maximum outstanding amount at any time of $4.0 billion of unsecured commercial paper notes. At December 31, 2020, Williams had no outstanding commercial paper. |
ARO Trust (Notes)
ARO Trust (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
ARO Trust | ARO TRUST We are entitled to collect in rates the amounts necessary to fund our ARO. We deposit monthly, into an external trust account (ARO Trust), the revenues specifically designated for ARO. The ARO Trust carries a moderate risk portfolio. The Money Market Funds held in our ARO Trust are considered investments. We measure the financial instruments held in our ARO Trust at fair value. However, in accordance with ASC Topic 980, Regulated Operations, both realized and unrealized gains and losses of the ARO Trust are recorded as regulatory assets or liabilities. Effective March 1, 2019, the annual ARO funding obligation based on the Docket No. RP18-1126 rate case filing was approximately $35.9 million. Pursuant to the Docket No. RP18-1126 rate case settlement, the new funding obligation (1) effective March 1, 2019 is approximately $23.8 million and (2) effective March 1, 2020 is approximately $16.0 million Investments within the ARO Trust at fair value were as follows (in millions): December 31, 2020 December 31, 2019 Amortized Fair Amortized Fair Money Market Funds $ 5.8 $ 5.8 $ 15.8 $ 15.8 U.S. Equity Funds 59.9 108.0 55.3 83.3 International Equity Funds 34.2 43.7 31.8 35.4 Municipal Bond Funds 74.9 78.0 64.7 66.1 Total $ 174.8 $ 235.5 $ 167.6 $ 200.6 |
Fair Value Measurements (Notes)
Fair Value Measurements (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS The following table presents, by level within the fair value hierarchy, certain of our financial assets and liabilities. The carrying values of short-term financial assets (advances to affiliate and from affiliate) that have variable interest rates, accounts receivable and accounts payable approximate fair value because of the short-term nature of these instruments. Therefore, these assets and liabilities are not presented in the following table. Fair Value Measurements Using Carrying Fair Quoted Significant Significant (Millions) Assets (liabilities) at December 31, 2020: Measured on a recurring basis: ARO Trust investments $ 235.5 $ 235.5 $ 235.5 $ — $ — Additional disclosures: Long-term debt, including current portion (5,239.8) (6,949.0) — (6,949.0) — Assets (liabilities) at December 31, 2019: Measured on a recurring basis: ARO Trust investments $ 200.6 $ 200.6 $ 200.6 $ — $ — Additional disclosures: Long-term debt, including current portion (4,065.0) (5,251.4) — (5,251.4) — Fair Value Methods The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value: Assets and liabilities measured at fair value on a recurring basis ARO Trust investments - We deposit a portion of our collected rates, pursuant to the terms of the Docket No. RP18-1126 rate case settlement, into the ARO Trust which is specifically designated to fund future asset retirement obligations. The ARO Trust invests in a portfolio of actively traded mutual funds that are measured at fair value on a recurring basis based on quoted prices in an active market and are reported in Other Assets-Other on the accompanying Consolidated Balance Sheet. However, both realized and unrealized gains and losses are ultimately recorded as regulatory assets or liabilities. See Note 6 for more information regarding the ARO Trust. Long-term debt - The disclosed fair value of our long-term debt is determined primarily by a market approach using broker quoted indicative period-end bond prices. The quoted prices are based on observable transactions in less active markets for our debt or similar instruments. The fair values of the financing obligations associated with our Dalton and Atlantic Sunrise expansions, which are included within long-term debt, were determined using an income approach (See Note 5 - Debt and Financing Agreements). Approvals required for the Northeast Supply Enhancement project from the New York State Department of Environmental Conservation and the New Jersey Department of Environmental Protection have been denied and we have not refiled at this time. Beginning in May 2020, we discontinued capitalization of costs related to this project. Considering that the customer precedent agreements and FERC certificate for the project remain in effect, we had previously concluded that the probability of completing the project was sufficient to not require impairment. However, recent developments in the political and regulatory environments have caused us to slightly lower that assessed probability such that the capitalized project costs now require impairment. As of December 31, 2020, the estimated fair value of the materials within the capitalized project costs were determined to be $41.5 million and considered other internal uses and salvage values for the Property, plant, and equipment, net , a Level 3 measurement. The remaining capitalized costs were determined to have no fair value. As a result we recognized an impairment charge of $170.1 million during the fourth quarter of 2020 |
Benefit Plans (Notes)
Benefit Plans (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans [Text Block] | BENEFIT PLANS Certain of the benefit costs charged to us by Williams associated with employees who directly support us are described below. Additionally, allocated corporate expenses from Williams to us also include amounts related to these same employee benefits, which are not included in the amounts presented below. Pension and Other Postretirement Benefit Plans Williams has noncontributory defined benefit pension plans (Williams Pension Plan, Williams Inactive Employees Pension Plan and The Williams Companies Retirement Restoration Plan) that provide pension benefits for its eligible employees. Pension costs charged to us by Williams were $9.1 million, $9.6 million and $12.8 million for 2020, 2019, and 2018, respectively. Included in our pension costs are settlement charges of $3.7 million and $2.7 million for 2020 and 2018, respectively. Williams makes annual cash contributions to the pension plans, based on annual actuarial estimates, which Transco recovers through rates that are set through periodic general rate filings. Effective with the Docket No. RP18-1126 rate case settlement, any amounts of annual contributions that fall below a threshold are recorded as adjustments to income and refunded through future rate adjustments. The amounts of deferred pension collections recorded as regulatory liabilities at December 31, 2020 and 2019 were $38.9 million and $43.3 million, respectively. Effective with the Docket No. RP18-1126 rate case settlement, the pension regulatory liability as of March 1, 2019 is being amortized over a five Williams provides subsidized retiree health care and life insurance benefits to certain eligible participants. Generally, participants that were employed by Williams on or before December 31, 1991 or December 31, 1995, if they were employees or retirees of Transco Energy Company and its subsidiaries, are eligible for subsidized retiree health care benefits. We recognized other postretirement benefit income of $4.5 million, $4.1 million and $5.9 million for 2020, 2019, and 2018, respectively. We have been allowed by rate case settlements to collect or refund in future rates any differences between the actuarially determined costs and amounts currently being recovered in rates related to other postretirement benefits. Any differences between the annual actuarially determined cost and amounts currently being recovered in rates are recorded as an adjustment to expense and collected or refunded through future rate adjustments. The amount of other postretirement benefits costs deferred as regulatory liabilities at December 31, 2020 and 2019 are $60.9 million and $68.0 million, respectively. Effective with the Docket No. RP18-1126 rate case settlement, the other postretirement benefits regulatory liability as of March 1, 2019 is being amortized over a period of approximately five Defined Contribution Plan Williams maintains a defined contribution plan for substantially all of its employees. Williams charged us compensation expense of $9.5 million, $7.9 million, and $7.9 million in 2020, 2019, and 2018, respectively, for Williams’ company contributions to this plan. Employee Stock-Based Compensation Plan Information The Williams Companies, Inc. 2007 Incentive Plan, as subsequently amended and restated, (Plan) provides for Williams’ common stock-based awards to both employees and non-management directors. The Plan permits the granting of various types of awards including, but not limited to, restricted stock units and stock options. Awards may be granted for no consideration other than prior and future services or based on certain financial performance targets achieved. Williams currently bills us directly for compensation expense related to stock-based compensation awards based on the fair value of the awards. We are also billed for our proportionate share of Williams’ and other affiliates’ stock-based compensation expense through various allocation processes. Total stock-based compensation expense for the years ended December 31, 2020, 2019, and 2018 was $4.0 million, $5.9 million, and $6.3 million, respectively, excluding amounts allocated from WPZ and Williams. |
Transactions with Major Custome
Transactions with Major Customers and Affiliates (Notes) | 1 Months Ended |
Feb. 28, 2021 | |
Transactions with Major Customers and Affiliates [Abstract] | |
Transactions with Major Customers and Affiliates | TRANSACTIONS WITH MAJOR CUSTOMERS AND AFFILIATES Major Customers Operating revenues received from three of our major customers in 2020, 2019 and 2018 are as follows (in millions): 2020 2019 2018 Dominion Energy, Inc. $ 248.5 $ 250.7 $ 113.5 Duke Energy Corporation 232.8 222.5 194.5 The Southern Company, Inc. 216.4 216.1 166.2 Affiliates We are a participant in Williams' cash management program, and we make advances to and receive advances from Williams. At December 31, 2020, our advances to Williams totaled approximately $642.7 million. These advances are represented by demand notes and are classified as Receivables - Advances to affiliate in the accompanying Consolidated Balance Sheet. At December 31, 2019, our advances from Williams totaled approximately $252.5 million. These advances are represented by demand notes and are classified as Payables - Advances from affiliate in the accompanying Consolidated Balance Sheet. Advances are stated at the historical carrying amounts. Interest expense and income are recognized when chargeable and collectability is reasonably assured. The interest rate on these intercompany demand notes is based upon the daily overnight investment rate paid on Williams' excess cash at the end of each month. At December 31, 2020, the interest rate was 0.01 percent. Included in Operating Revenues in the accompanying Consolidated Statement of Comprehensive Income for 2020, 2019 and 2018 are revenues received from affiliates of $11.4 million, $10.5 million, and $10.1 million, respectively. The rates charged to provide sales and services to affiliates are the same as those that are charged to similarly-situated nonaffiliated customers. Included in Cost of natural gas sales in the accompanying Consolidated Statement of Comprehensive Income for 2020, 2019 and 2018 is purchased gas cost from affiliates of $5.6 million, $4.0 million, and $5.4 million, respectively. All gas purchases are made at market or contract prices. We have no employees. Services necessary to operate our business are provided to us by Williams and certain affiliates of Williams. We reimburse Williams and its affiliates for all direct and indirect expenses incurred or payments made (including salary, bonus, incentive compensation and benefits) in connection with these services. Employees of Williams also provide general, administrative and management services to us, and we are charged for certain administrative expenses incurred by Williams. These charges are either directly identifiable or allocated to our assets. Direct charges are for goods and services provided by Williams at our request. Allocated charges are based on a three-factor formula, which considers revenues; property, plant and equipment; and payroll. In management’s estimation, the allocation methodologies used are reasonable and result in a reasonable allocation to us of our costs of doing business incurred by Williams. We were billed $352.1 million, $412.4 million, and $395.3 million during 2020, 2019 and 2018, respectively, for these services. Such expenses are primarily included in Administrative and general and Operation and maintenance expenses in the accompanying Consolidated Statement of Comprehensive Income. Included in the amounts billed to us for 2019 are costs for severance and other related costs associated with a reduction in workforce of $28.8 million. We provide services to certain of our affiliates. We recorded reductions in operating expenses for services provided to and reimbursed by our affiliates of $5.1 million, $4.4 million, and $4.7 million in 2020, 2019 and 2018, respectively. We made equity distributions to our parent of $1,020 million, $824 million and $490 million during 2020, 2019 and 2018, respectively. During 2020 and 2018, our parent made contributions totaling $115 million and $340 million, respectively, to us. During February 2021, our parent made an additional $60 million contribution to us. During 2019, we recognized a non-cash distribution of $25 million to our parent related to a settlement agreement between Williams and a co-owner in our Atlantic Sunrise project. Although the agreement was between Williams and a third party, since the agreement was in part related to our Atlantic Sunrise project, the settlement amount was added to our Atlantic Sunrise project financing obligation. (See Note 5) Effective December 31, 2019, we made a $36.6 million non-cash distribution to our parent of our interests in our wholly-owned subsidiaries, Cardinal Operating Company, LLC, Pine Needle Operating Company, LLC, TransCarolina LNG Company, LLC, and TransCardinal Company, LLC. |
Asset Retirement Obligations (N
Asset Retirement Obligations (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | ASSET RETIREMENT OBLIGATIONS These accrued obligations relate to underground storage caverns, offshore platforms, pipelines, and gas transmission facilities. At the end of the useful life of each respective asset, we are legally obligated to plug storage caverns and remove any related surface equipment, to dismantle offshore platforms, to cap certain gathering pipelines at the wellhead connection and remove any related surface equipment, and to remove certain components of gas transmission facilities from the ground. During 2020 and 2019, our overall asset retirement obligation changed as follows (in thousands): 2020 2019 Beginning balance $ 459,209 $ 394,323 Accretion 23,142 21,806 New obligations 1,154 103 Changes in estimates of existing obligations (1) (21,889) 49,070 Property dispositions/obligations settled (11,115) (6,093) Ending balance $ 450,501 $ 459,209 (1) Changes in estimates of existing obligations are primarily due to the annual review process, which considers various factors including inflation rate, current estimates for removal costs, discount rates, and the estimated remaining life of assets. The decrease in 2020 is primarily due to a decrease in the inflation rate. The increase in 2019 is primarily due to an increase in the inflation rate and a decrease in the discount rate. We are entitled to collect in rates the amounts necessary to fund our ARO. All funds received for such retirements are deposited into an external trust account dedicated to funding our ARO (See Note 6). |
Regulatory Assets and Liabiliti
Regulatory Assets and Liabilities (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Regulatory Assets and Liabilities Disclosure [Abstract] | |
Regulatory Assets and Liabilities | REGULATORY ASSETS AND LIABILITIES The regulatory assets and regulatory liabilities resulting from our application of the provisions of ASC Topic 980, Regulated Operations, included in the accompanying Consolidated Balance Sheet at December 31, 2020 and December 31, 2019 are as follows (in millions): Regulatory Assets 2020 2019 Grossed-up deferred taxes on equity funds used during construction $ 36.1 $ 37.5 Asset retirement obligations 139.5 147.6 Asset retirement costs - Eminence 36.6 42.2 Deferred cash out 70.0 64.4 Fuel cost 34.1 40.2 Electric power cost 7.8 8.4 Slug catcher 6.4 6.6 Other 14.2 13.5 Total Regulatory Assets $ 344.7 $ 360.4 Regulatory Liabilities 2020 2019 Negative salvage $ 504.5 $ 482.6 Deferred taxes - liability 392.8 423.5 Sentinel meter station depreciation 6.8 6.6 Postretirement benefits other than pension 60.9 68.0 Pension 38.9 43.3 Other — 0.3 Total Regulatory Liabilities $ 1,003.9 $ 1,024.3 The significant regulatory assets and liabilities include: Grossed-up deferred taxes on equity funds used during construction : Regulatory asset balance established to offset the deferred tax for the equity component of the allowance for funds used during the construction of long-lived assets. All amounts were generated during the period that we were a taxable entity. Taxes on capitalized funds used during construction and the offsetting deferred income taxes are included in the rate base and are recovered over the depreciable lives of the long-lived asset to which they relate. Asset retirement obligations : Regulatory asset balance established to offset depreciation of the ARO asset and changes in the ARO liability due to the passage of time. The regulatory asset is being recovered through our rates, and is being amortized to expense consistent with the amounts collected in rates (See Note 10). Asset retirement costs - Eminence : Regulatory asset balance associated with the Eminence Storage Field retirement costs. The regulatory asset is being recovered through our rates and is being amortized to expense consistent with the amounts collected in rates. Deferred cash out : This amount represents the deferral of gains or losses on the purchases and sales of gas imbalances with shippers. These amounts are not included in the rate base but are expected to be recovered/refunded in subsequent annual cash out filing periods. Fuel cost : This amount represents the difference between the gas retained from our customers and the gas consumed in operations. These amounts are not included in the rate base but are expected to be recovered/refunded in subsequent annual fuel tracker filing periods. Electric power cost : This amount represents the difference between the electric power costs recovered from our customers and the electric power costs incurred in operations. These amounts are not included in the rate base but are expected to be recovered/refunded in subsequent annual electric power tracker filing periods. Slug catcher: This amount represents certain costs associated with the replacement of a component of a slug catcher which was included in the Docket No. RP18-1126 rate case settlement. A regulatory asset has been established to recognize the recovery of Transco’s investment in the slug catcher as it is collected through Transco’s depreciation rates and is being amortized at the onshore transmission plant depreciation rate. Negative salvage: Our rates include a component designed to recover certain future retirement costs for which we are not required to record an asset retirement obligation. We record a regulatory liability representing the cumulative residual amount of recoveries through rates, net of expenditures associated with these retirement costs. Deferred taxes - liability : Regulatory liability balance was established as a result of a decrease to rate base deferred taxes due to a decrease to the effective federal income tax rate. The timing of the refund of the regulatory liability to rate payers is stated in the Docket No. RP18-1126 rate case settlement. Sentinel meter station depreciation: This amount reflects the incremental depreciation being recorded related to the meter station modifications made for three of the Sentinel shippers. These modifications will be recovered through a surcharge over a defined period of time as stated in the Sentinel FERC order. The incremental depreciation represents the difference between the FERC granted depreciation rate for such facilities in the last rate case as compared to the depreciation rates in the Sentinel order which are based on the contractual terms in the surcharge agreements. The incremental depreciation will be recorded through the end of the contractual term and then will be amortized. Postretirement benefits other than pension: We recover the actuarially determined cost of postretirement benefits through rates that are set through periodic general rate filings. Any differences between the annual actuarially determined cost and the amounts recovered in rates are recorded as regulatory assets or liabilities to be collected or refunded through future rate adjustments. These amounts are not included in the rate base. Effective with the Docket No. RP18-1126 rate case settlement, the other postretirement benefits regulatory liability balance as of March 1, 2019, is currently being amortized. (See Note 8). Pension: We recover the actuarially determined pension cash contributions through rates that are set through periodic general rate filings. Effective with the Docket No. RP18-1126 rate case settlement, any amounts of annual contributions that fall below the threshold are recorded as adjustments to income and refunded through future rate adjustments. Effective with the Docket No. RP18-1126 rate case settlement, the pension regulatory liability balance as of March 1, 2019, is currently being amortized. (See Note 8). |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Regulatory Accounting | Regulatory Accounting We are regulated by the Federal Energy Regulatory Commission (FERC). Accounting Standards Codification (ASC) Regulated Operations, (Topic 980), provides that certain costs that would otherwise be charged to expense should be deferred as regulatory assets, based on the expected recovery from customers in future rates. Likewise, certain actual or anticipated credits that would otherwise reduce expense should be deferred as regulatory liabilities, based on the expected return to customers in future rates. Management's expected recovery of deferred costs and return of deferred credits generally results from specific decisions by regulators granting such ratemaking treatment. We record certain incurred costs and obligations as regulatory assets or liabilities if, based on regulatory orders or other available evidence, it is probable that the costs or obligations will be included in amounts allowable for recovery or refunded in future rates. Accounting for businesses that are regulated and apply the provisions of Topic 980 can differ from the accounting requirements for non-regulated businesses. Transactions that are recorded differently as a result of regulatory accounting requirements include the capitalization of an equity return component on regulated capital projects, capitalization of other project costs, retirements of general plant assets, employee related benefits, environmental costs, negative salvage, asset retirement obligations (ARO), and other costs and taxes included in, or expected to be included in, future rates. As a rate-regulated entity, our management has determined that it is appropriate to apply the accounting prescribed by Topic 980 and, accordingly, the accompanying consolidated financial statements include the effects of the types of transactions described above that result from regulatory accounting requirements. |
Basis of Presentation | Basis of Presentation Williams’ acquisition of us in 1995 was accounted for using the purchase method of accounting. Accordingly, an allocation of the purchase price was assigned to our assets and liabilities based on their estimated fair values. The purchase price allocation to us primarily consisted of a $1.5 billion allocation to property, plant and equipment and adjustments to deferred taxes based upon the book basis of the net assets recorded as a result of the acquisition. The amount allocated to property, plant and equipment is being depreciated on a straight-line basis over 40 years, the estimated useful lives of these assets at the date of acquisition, at approximately $35 million per year. At |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include our accounts and the accounts of the subsidiaries we control. Companies in which we and our subsidiaries own 20 percent to 50 percent of the voting common stock or otherwise exercise significant influence over operating and financial policies of the company are accounted for under the equity method. The equity method investments prior to December 31, 2019 (See Note 9) consist of Cardinal Pipeline Company, LLC (Cardinal) with ownership interest of approximately 45 percent and Pine Needle LNG Company, LLC (Pine Needle) with ownership interest of 35 percent. We received distributions associated with our equity method investments totaling $4.9 million and $3.2 million in 2019 and 2018, respectively. We made a $12.3 million contribution to Pine Needle in the second quarter of 2019. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Estimates and assumptions which, in the opinion of management, are significant to the underlying amounts included in the financial statements and for which it would be reasonably possible that future events or information could change those estimates include: 1) revenues subject to refund; 2) litigation-related contingencies; 3) environmental remediation obligations; 4) impairment assessments of long-lived assets; 5) depreciation; and 6) asset retirement obligations. |
Revenue Recognition | Revenue Recognition Our customers are comprised of public utilities, municipalities, gas marketers and producers, intrastate pipelines, direct industrial users, and electrical power generators. Service revenue contracts from our gas pipeline business contain a series of distinct services, with the majority of our contracts having a single performance obligation that is satisfied over time as the customer simultaneously receives and consumes the benefits provided by our performance. Most of our natural gas sales contracts have a single performance obligation with revenue recognized at a point in time when the natural gas has been sold and delivered to the customer. Certain customers reimburse us for costs we incur associated with construction of property, plant, and equipment utilized in our operations. As a rate-regulated entity applying Topic 980, we follow FERC guidelines with respect to reimbursement of construction costs. FERC tariffs only allow for cost reimbursement and are non-negotiable in nature; thus, in our judgment, the construction activities do not represent an ongoing major and central operation of our gas pipelines business and are not within the scope of Accounting Standards Update (ASU) 2014-09, Revenues from Contracts with Customers (ASC 606). Accordingly, cost reimbursements are treated as a reduction to the cost of the constructed asset. Operating Revenues We are subject to regulation by certain state and federal authorities, including the FERC, with revenue derived from both firm and interruptible transportation and storage contracts. Firm transportation and storage agreements provide for a fixed reservation charge based on the pipeline or storage capacity reserved, and a commodity charge based on the volume of natural gas delivered/stored, each at rates specified in our FERC tariffs or as negotiated with our customers, with contract terms that are generally long-term in nature. Most of our long-term contracts contain an evergreen provision, which allows the contracts to be extended for periods primarily up to one year in length an indefinite number of times following the specified contract term and until terminated generally by either us or the customer. Interruptible transportation and storage agreements provide for a volumetric charge based on actual commodity transportation or storage utilized in the period in which those services are provided, and the contracts are generally limited to one month periods or less. Our performance obligations include the following: • Firm transportation or storage under firm transportation and storage contracts - an integrated package of services typically constituting a single performance obligation, which includes standing ready to provide such services and receiving, transporting or storing (as applicable), and redelivering commodities; • Interruptible transportation and storage under interruptible transportation and storage contracts - an integrated package of services typically constituting a single performance obligation once scheduled, which includes receiving, transporting or storing (as applicable), and redelivering commodities. In situations where, in our judgment, we consider the integrated package of services as a single performance obligation, which represents a majority of our contracts with customers, we do not consider there to be multiple performance obligations because the nature of the overall promise in the contract is to stand ready (with regard to firm transportation and storage contracts), receive, transport or store, and redeliver natural gas to the customer; therefore, revenue is recognized over time upon satisfaction of our daily stand ready performance obligation. We recognize revenues for reservation charges over the performance obligation period, which is the contract term, regardless of the volume of natural gas that is transported or stored. Revenues for commodity charges from both firm and interruptible transportation services and storage services are recognized when natural gas is delivered at the agreed upon delivery point or when natural gas is injected or withdrawn from the storage facility because they specifically relate to our efforts to provide these distinct services. Generally, reservation charges and commodity charges are recognized as revenue in the same period they are invoiced to our customers. As a result of the ratemaking process, certain amounts collected by us may be subject to refunds upon the issuance of final orders by the FERC in pending rate proceedings. We use judgment to record estimates of rate refund liabilities considering our and other third-party regulatory proceedings, advice of counsel, and other risks. Natural Gas Sales In the course of providing transportation services to customers, we may receive different quantities of natural gas from customers than the quantities delivered on behalf of those customers. The resulting imbalances are primarily settled through the purchase or sale of natural gas with each customer under terms provided for in our FERC tariffs. Revenue is recognized from the sale of natural gas upon settlement of the transportation and exchange imbalances (See Gas Imbalances in this Note). Contract Liabilities Our contract liabilities consist of advance payments from customers, which include prepayments, and other billings for which future services are to be provided under the contract. These amounts are deferred until recognized in revenue when the associated performance obligation has been satisfied, which is primarily straight-line over the remaining contractual service periods, and are classified as current or non-current according to when such amounts are expected to be recognized. Current and non-current contract liabilities are included within Accrued Liabilities and Other Long-Term Liabilities - Deferred revenue , respectively, in our Consolidated Balance Sheet. |
Leases | Leases We are a lessee through noncancellable lease agreements for property and equipment consisting primarily of buildings, land, vehicles, and equipment used in both our operations and administrative functions. We recognize a lease liability with an offsetting right-of-use asset in our Consolidated Balance Sheet for operating leases based on the present value of the future lease payments. As an accounting policy, we have elected to combine lease and nonlease components for all classes of leased assets in our calculation of the lease liability and the offsetting right-of-use asset. Our lease agreements require both fixed and variable periodic payments, with initial terms typically ranging from one year to 15 years, but a certain land lease has a term of 108 years. Payment provisions in certain of our lease agreements contain escalation factors which may be based on stated rates or a change in a published index at a future time. The amount by which a lease escalates based on the change in a published index, which is not known at lease commencement, is considered a variable payment and is not included in the present value of the future lease payments, which only includes those that are stated or can be calculated based on the lease agreement at lease commencement. In addition to the noncancellable periods, many of our lease agreements provide for one or more extensions of the lease agreement for periods ranging from one year in length to an indefinite number of times following the specified contract term. Other lease agreements provide for extension terms that allow us to utilize the identified leased asset for an indefinite period of time so long as the asset continues to be utilized in our operations. In consideration of these renewal features, we assess the term of the lease agreements, which includes using judgment in the determination of which renewal periods and termination provisions, when at our sole election, will be reasonably certain of being exercised. Periods after the initial term or extension terms that allow for either party to the lease to cancel the lease are not considered in the assessment of the lease term. Additionally, we have elected to exclude leases with an original term of one year or less, including renewal periods, from the calculation of the lease liability and the offsetting right-of-use asset. We used judgment in determining the discount rate upon which the present value of the future lease payments is determined. This rate is based on a collateralized interest rate corresponding to the term of the lease agreement using company, industry, and market information available. |
Environmental Matters | Environmental Matters We are subject to federal, state, and local environmental laws and regulations. Environmental expenditures are expensed or capitalized depending on their economic benefit and potential for rate recovery. We believe that any expenditures required to meet applicable environmental laws and regulations are prudently incurred in the ordinary course of business and such expenditures would be permitted to be recovered through rates. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment is recorded at cost. The carrying values of these assets are also based on estimates, assumptions and judgments relative to capitalized costs, useful lives and salvage values. These estimates, assumptions and judgments reflect FERC regulations, as well as historical experience and expectations regarding future industry conditions and operations. The FERC identifies installation, construction and replacement costs that are to be capitalized. All other costs are expensed as incurred. Gains or losses from the ordinary sale or retirement of property, plant and equipment are credited or charged to accumulated depreciation; certain other gains or losses are recorded in operating income. We provide for depreciation under the composite (group) method at straight-line FERC prescribed rates that are applied to the cost of the group for transmission facilities, production and gathering facilities and storage facilities. Under this method, assets with similar lives and characteristics are grouped and depreciated as one asset. Included in our depreciation rates is a negative salvage component (net cost of removal) that we currently collect in rates. Our depreciation rates are subject to change each time we file a general rate case with the FERC. Depreciation rates used for major regulated gas plant facilities at December 31, 2020, 2019 and 2018 are as follows: Category of Property 2020-2019 (1) 2018 Gathering facilities 0% - 1.00% 1.35% - 2.50% Storage facilities 1.86% - 2.05% 2.10% - 2.25% Onshore transmission facilities 2.50% - 7.13% 2.61% - 5.00% Offshore transmission facilities 1.25% - 1.25% 1.20% - 1.20% (1) Changes in depreciation rates in 2019 were due to placing into effect the rates in Docket No. RP18-1126 on March 1, 2019. We record a liability and increase the basis in the underlying asset for the present value of each expected future Asset Retirement Obligations (ARO) at the time the liability is initially incurred, typically when the asset is acquired or constructed. Measurements of AROs include, as a component of future expected costs, an estimate of the price that a third party would demand, and could expect to receive, for bearing the uncertainties inherent in the obligations, sometimes referred to as a market-risk premium. The ARO asset is depreciated in a manner consistent with the expected timing of the future abandonment of the underlying physical assets. We measure changes in the liability due to passage of time by applying an interest method of allocation. The depreciation of the ARO asset and accretion of the ARO liability are recognized as an increase to a regulatory asset, as management expects to recover such amounts in future rates. The regulatory asset is amortized commensurate with our collection of these costs in rates. |
Impairment of Long-Lived Assets | Impairment of Long-lived Assets We evaluate our long-lived assets, including capitalized project development costs, for impairment when events or changes in circumstances indicate, in our management's judgment, that the carrying value of such assets may not be recoverable. When an indicator of a potential impairment has occurred, we compare our management's estimate of undiscounted future cash flows attributable to the assets to the carrying value of the assets to determine whether an impairment has occurred. We apply a probability-weighted approach to consider the likelihood of different cash flow assumptions. If an impairment of the carrying value has occurred, we determine the amount of the impairment recognized in the financial statements by estimating the fair value of the assets and recording a loss for the amount that the carrying value exceeds the estimated fair value. For assets identified to be disposed of in the future and considered held for sale in accordance with the ASC Property, Plant, and Equipment (Topic 360), we compare the carrying value to the estimated fair value less the cost to sell to determine if recognition of an impairment is required. Until the assets are disposed of, the estimated fair value, which includes estimated cash flows from operations until the assumed date of sale, is recalculated when related events or circumstances change. |
Allowance for Funds Used During Construction | Allowance for Funds Used During Construction Allowance for funds used during construction (AFUDC) represents the estimated cost of borrowed and equity funds applicable to utility plant in process of construction and are included as a cost of property, plant and equipment because it constitutes an actual cost of construction under established regulatory practices. The FERC has prescribed a formula to be used in computing separate allowances for borrowed and equity AFUDC. The allowance for borrowed funds used during construction was $7.7 million, $10.5 million, and $29.2 million, for 2020, 2019 and 2018, respectively. The allowance for equity funds was $14.9 million, $28.8 million, and $87.1 million, for 2020, 2019 and 2018, respectively. |
Income Taxes | Income Taxes We are a natural gas company organized as a pass-through entity and our taxable income or loss is consolidated on the federal income tax return of our parent, Williams. We generally are treated as a pass-through entity for state and local income tax purposes, and those taxes are generally borne on a consolidated basis by Williams. Net income for financial statement purposes may differ significantly from taxable income of Williams as a result of differences between the tax basis and financial reporting basis of assets and liabilities. |
Accounts Receivable and Allowance for Doubtful Receivables | Accounts Receivable and Allowance for Doubtful Receivables Accounts receivable are stated at the historical carrying amount net of reserves or write-offs. We estimate the reserves, considering current expected credit losses (as discussed below in Accounting Standards Issued and Adopted). We do not offer extended payment terms and typically receive payment within one month. We consider receivables past due if full payment is not received by the contractual due date. Our credit risk exposure in the event of nonperformance by the other parties is limited to the face value of the receivables. We perform ongoing credit evaluations of our customers’ financial condition and require collateral from our customers, if necessary. Due to our customer base, we have not historically experienced recurring credit losses in connection with our receivables. |
Gas Imbalances | Gas Imbalances In the course of providing transportation services to customers, we may receive different quantities of gas from shippers than the quantities delivered on behalf of those shippers. Additionally, we transport gas on various pipeline systems which may deliver different quantities of gas on behalf of us than the quantities of gas received from us. These transactions result in gas transportation and exchange imbalance receivables and payables which are recovered or repaid in cash or through the receipt or delivery of gas in the future and are recorded in the accompanying Consolidated Balance Sheet. Settlement of imbalances requires agreement between the pipelines and shippers as to allocations of volumes to specific transportation contracts and timing of delivery of gas based on operational conditions. Our tariff includes a method whereby most transportation imbalances are settled on a monthly basis. Each month a portion of the imbalances are not identified to specific parties and remain unsettled. These are generally identified to specific parties and settled in subsequent periods. We believe that amounts that remain unidentified to specific parties and unsettled at year end are valid balances that will be settled with no material adverse effect upon our financial position, results of operations or cash flows. Management has implemented a policy of continuing to carry any unidentified transportation and exchange imbalances on the books for a three-year period. At the end of the three year period a final assessment will be made of their continued validity. Absent a valid reason for maintaining the imbalance, any remaining balance will be recognized in income. Certain imbalances are being recovered or repaid in cash or through the receipt or delivery of gas upon agreement of the parties as to the allocation of the gas volumes, and as permitted by pipeline operating conditions. These imbalances have been classified as current assets and current liabilities at December 31, 2020 and 2019. We utilize the average cost method of accounting for gas imbalances. Deferred Cash Out Most transportation imbalances are settled in cash on a monthly basis (cash-out). In accordance with our tariff, revenues received from the cash-out of transportation imbalances in excess of costs incurred are deferred and offset by the deferral of costs incurred in excess of revenues received. At the end of each annual August through July reporting period, if the cumulative revenues received exceed the costs incurred, the over recovered amounts are refunded. If the cumulative revenues received are less than the costs incurred, the net under recovered amounts are carried forward and offset against any future net over recoveries that may occur in a subsequent annual reporting period. |
Inventory | Gas Inventory We utilize the last-in, first-out (LIFO) method of accounting for inventory gas in storage. At December 31, 2020 and 2019, Gas in Storage, at LIFO, was zero. The basis for determining current cost at the end of each year is the December monthly average gas price delivered to pipelines in Texas and Louisiana. We utilize the average cost method of accounting for gas available for customer nomination. Liquefied natural gas in storage is valued at original cost. Materials and Supplies Inventory All inventories are stated at average cost. We perform an annual review of Materials and Supplies inventories, including a quarterly analysis of parts that may no longer be useful due to planned replacements of compressor engines and other components on our system. Based on this assessment, we record a reserve for the value of the inventory which can no longer be used for maintenance and repairs on our pipeline. There was a minimal reserve at December 31, 2020 and 2019. |
Contingent Liabilities | Contingent Liabilities We record liabilities for estimated loss contingencies, including environmental matters, when we assess that a loss is probable and the amount of the loss can be reasonably estimated. These liabilities are calculated based upon our assumptions and estimates with respect to the likelihood or amount of loss and upon advice of legal counsel, engineers, or other third parties regarding the probable outcomes of the matters. These calculations are made without consideration of any potential recovery from third-parties. We recognize insurance recoveries or reimbursements from others when realizable. Revisions to these liabilities are generally reflected in income when new or different facts or information become known or circumstances change that affect the previous assumptions or estimates. |
Pension and Other Postretirement Benefits | Pension and Other Postretirement Benefits We do not have employees. Certain of the costs charged to us by Williams associated with employees who directly support us include costs related to Williams’ pension and other postretirement benefit plans. (See Note 8.) Although the underlying benefit plans of Williams are single-employer plans, we follow multiemployer plan accounting whereby the amount charged to us and thus paid by us, is based on our share of net periodic benefit cost. |
Cash Equivalents | Cash Flows from Operating Activities and Cash Equivalents We use the indirect method to report cash flows from operating activities, which requires adjustments to net income to reconcile to net cash flows provided by operating activities. We include short-term, highly-liquid investments that have an original maturity of three months or less as cash equivalents. |
Fair Value Measurements (Polici
Fair Value Measurements (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Methods The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value: Assets and liabilities measured at fair value on a recurring basis ARO Trust investments - We deposit a portion of our collected rates, pursuant to the terms of the Docket No. RP18-1126 rate case settlement, into the ARO Trust which is specifically designated to fund future asset retirement obligations. The ARO Trust invests in a portfolio of actively traded mutual funds that are measured at fair value on a recurring basis based on quoted prices in an active market and are reported in Other Assets-Other on the accompanying Consolidated Balance Sheet. However, both realized and unrealized gains and losses are ultimately recorded as regulatory assets or liabilities. See Note 6 for more information regarding the ARO Trust. Long-term debt - The disclosed fair value of our long-term debt is determined primarily by a market approach using broker quoted indicative period-end bond prices. The quoted prices are based on observable transactions in less active markets for our debt or similar instruments. The fair values of the financing obligations associated with our Dalton and Atlantic Sunrise expansions, which are included within long-term debt, were determined using an income approach (See Note 5 - Debt and Financing Agreements). Approvals required for the Northeast Supply Enhancement project from the New York State Department of Environmental Conservation and the New Jersey Department of Environmental Protection have been denied and we have not refiled at this time. Beginning in May 2020, we discontinued capitalization of costs related to this project. Considering that the customer precedent agreements and FERC certificate for the project remain in effect, we had previously concluded that the probability of completing the project was sufficient to not require impairment. However, recent developments in the political and regulatory environments have caused us to slightly lower that assessed probability such that the capitalized project costs now require impairment. As of December 31, 2020, the estimated fair value of the materials within the capitalized project costs were determined to be $41.5 million and considered other internal uses and salvage values for the Property, plant, and equipment, net , a Level 3 measurement. The remaining capitalized costs were determined to have no fair value. As a result we recognized an impairment charge of $170.1 million during the fourth quarter of 2020 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Depreciation rates | We provide for depreciation under the composite (group) method at straight-line FERC prescribed rates that are applied to the cost of the group for transmission facilities, production and gathering facilities and storage facilities. Under this method, assets with similar lives and characteristics are grouped and depreciated as one asset. Included in our depreciation rates is a negative salvage component (net cost of removal) that we currently collect in rates. Our depreciation rates are subject to change each time we file a general rate case with the FERC. Depreciation rates used for major regulated gas plant facilities at December 31, 2020, 2019 and 2018 are as follows: Category of Property 2020-2019 (1) 2018 Gathering facilities 0% - 1.00% 1.35% - 2.50% Storage facilities 1.86% - 2.05% 2.10% - 2.25% Onshore transmission facilities 2.50% - 7.13% 2.61% - 5.00% Offshore transmission facilities 1.25% - 1.25% 1.20% - 1.20% (1) Changes in depreciation rates in 2019 were due to placing into effect the rates in Docket No. RP18-1126 on March 1, 2019. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue Recognition [Abstract] | |
Contract with Customer, Asset and Liability [Table Text Block] | The following table presents a reconciliation of our contract liabilities: December 31, 2020 December 31, 2019 (Thousands) Balance at beginning of period $ 226,164 $ 236,730 Recognized in revenue (10,568) (10,566) Balance at end of period $ 215,596 $ 226,164 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block] | The following table presents the amount of the contract liabilities balance expected to be recognized as revenue when performance obligations are satisfied and the transaction price allocated to the remaining performance obligations under certain contracts as of December 31, 2020. Contract Liabilities Remaining Performance Obligations (Thousands) 2021 $ 10,566 $ 2,349,047 2022 10,566 2,196,621 2023 10,566 2,040,685 2024 10,568 1,487,964 2025 10,566 1,453,924 Thereafter 162,764 12,231,530 Total $ 215,596 $ 21,759,771 |
Leases Leases (Tables)
Leases Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | As of December 31, 2020, the following table represents our operating lease maturities, including renewal provisions that we have assessed as being reasonably certain of exercise, for each of the years ended December 31: (Thousands) 2021 $ 9,471 2022 9,611 2023 9,614 2024 9,316 2025 9,065 Thereafter 74,330 Total future lease payments 121,407 Less amount representing interest 36,497 Total obligations under operating leases $ 84,910 |
Lease, Cost [Table Text Block] | Twelve Months Ended 2020 2019 (Thousands) Lease Cost: Operating lease cost $ 9,691 $ 10,276 Variable lease cost 3,135 6,867 Total lease cost $ 12,826 $ 17,143 Cash paid for amounts included in the measurement of operating lease liabilities $ 3,690 $ 9,986 December 31, 2020 2019 (Thousands) Other Information: Right-of-use assets $ 78,899 $ 84,979 Operating lease liabilities: Current (included in Accrued liabilities - Other in our Consolidated Balance Sheet) $ 6,222 $ 811 Lease liability $ 78,688 $ 84,528 Weighted-average remaining lease term - operating leases (years) 15 15 Weighted-average discount rate - operating leases 4.66 % 4.65 % |
Debt and Financing Arrangemen_2
Debt and Financing Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-term debt | At December 31, 2020 and 2019, long-term debt outstanding was as follows (in thousands): 2020 2019 Debentures: 7.08% due 2026 $ 7,500 $ 7,500 7.25% due 2026 200,000 200,000 Total debentures 207,500 207,500 Notes: 7.85% due 2026 1,000,000 1,000,000 4.0% due 2028 400,000 400,000 3.25% due 2030 700,000 — 5.4% due 2041 375,000 375,000 4.45% due 2042 400,000 400,000 4.6% due 2048 600,000 600,000 3.95% due 2050 500,000 — Total notes 3,975,000 2,775,000 Other financing obligations 1,104,143 1,115,980 Total long-term debt, including current portion 5,286,643 4,098,480 Unamortized debt issuance costs (32,505) (22,876) Unamortized debt premium and discount, net (14,358) (10,634) Long-term debt due within one year (22,640) (20,180) Total long-term debt $ 5,217,140 $ 4,044,790 |
Maturities of long-term debt | Aggregate minimum maturities (face value) applicable to long-term debt outstanding at December 31, 2020, for the next five years, are as follows (in thousands): 2021: Other financing obligations $ 22,640 2022: Other financing obligations $ 24,762 2023: Other financing obligations $ 27,082 2024: Other financing obligations $ 29,621 2025: Other financing obligations $ 32,397 |
Future minimum lease payments | . |
ARO Trust (Tables)
ARO Trust (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
ARO Trust | Investments within the ARO Trust at fair value were as follows (in millions): December 31, 2020 December 31, 2019 Amortized Fair Amortized Fair Money Market Funds $ 5.8 $ 5.8 $ 15.8 $ 15.8 U.S. Equity Funds 59.9 108.0 55.3 83.3 International Equity Funds 34.2 43.7 31.8 35.4 Municipal Bond Funds 74.9 78.0 64.7 66.1 Total $ 174.8 $ 235.5 $ 167.6 $ 200.6 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value, assets and liabilities measured on recurring basis | The following table presents, by level within the fair value hierarchy, certain of our financial assets and liabilities. The carrying values of short-term financial assets (advances to affiliate and from affiliate) that have variable interest rates, accounts receivable and accounts payable approximate fair value because of the short-term nature of these instruments. Therefore, these assets and liabilities are not presented in the following table. Fair Value Measurements Using Carrying Fair Quoted Significant Significant (Millions) Assets (liabilities) at December 31, 2020: Measured on a recurring basis: ARO Trust investments $ 235.5 $ 235.5 $ 235.5 $ — $ — Additional disclosures: Long-term debt, including current portion (5,239.8) (6,949.0) — (6,949.0) — Assets (liabilities) at December 31, 2019: Measured on a recurring basis: ARO Trust investments $ 200.6 $ 200.6 $ 200.6 $ — $ — Additional disclosures: Long-term debt, including current portion (4,065.0) (5,251.4) — (5,251.4) — |
Transactions with Major Custo_2
Transactions with Major Customers and Affiliates (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Transactions with Major Customers and Affiliates [Abstract] | |
Schedule of revenue by major customers | Operating revenues received from three of our major customers in 2020, 2019 and 2018 are as follows (in millions): 2020 2019 2018 Dominion Energy, Inc. $ 248.5 $ 250.7 $ 113.5 Duke Energy Corporation 232.8 222.5 194.5 The Southern Company, Inc. 216.4 216.1 166.2 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of change in asset retirement obligation | During 2020 and 2019, our overall asset retirement obligation changed as follows (in thousands): 2020 2019 Beginning balance $ 459,209 $ 394,323 Accretion 23,142 21,806 New obligations 1,154 103 Changes in estimates of existing obligations (1) (21,889) 49,070 Property dispositions/obligations settled (11,115) (6,093) Ending balance $ 450,501 $ 459,209 |
Regulatory Assets and Liabili_2
Regulatory Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Regulatory Assets and Liabilities Disclosure [Abstract] | |
Schedule of Regulatory Assets [Table Text Block] | The regulatory assets and regulatory liabilities resulting from our application of the provisions of ASC Topic 980, Regulated Operations, included in the accompanying Consolidated Balance Sheet at December 31, 2020 and December 31, 2019 are as follows (in millions): Regulatory Assets 2020 2019 Grossed-up deferred taxes on equity funds used during construction $ 36.1 $ 37.5 Asset retirement obligations 139.5 147.6 Asset retirement costs - Eminence 36.6 42.2 Deferred cash out 70.0 64.4 Fuel cost 34.1 40.2 Electric power cost 7.8 8.4 Slug catcher 6.4 6.6 Other 14.2 13.5 Total Regulatory Assets $ 344.7 $ 360.4 |
Schedule of Regulatory Liabilities [Table Text Block] | Regulatory Liabilities 2020 2019 Negative salvage $ 504.5 $ 482.6 Deferred taxes - liability 392.8 423.5 Sentinel meter station depreciation 6.8 6.6 Postretirement benefits other than pension 60.9 68.0 Pension 38.9 43.3 Other — 0.3 Total Regulatory Liabilities $ 1,003.9 $ 1,024.3 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Purchase Price Allocation | ||||
Purchase price allocation, gross | $ 1,500,000 | |||
Purchase price allocation, property, plant and equipment, estimated useful lIfe | 40 years | |||
Purchase price allocation, depreciation | $ 35,000 | |||
Purchase price allocation, remaining allocation | 500,000 | |||
Schedule of Equity Method Investments [Line Items] | ||||
Proceeds from Equity Method Investment, Distribution | 0 | $ 4,908 | $ 3,250 | |
Contributions to unconsolidated affiliates | $ 12,300 | 0 | 12,250 | 0 |
Capitalized Interest Costs, Including Allowance for Funds Used During Construction [Abstract] | ||||
Allowance for funds used during construction, borrowed | 7,700 | 10,500 | 29,200 | |
Allowance for funds used during construction, equity | 14,900 | $ 28,800 | $ 87,100 | |
Inventory Disclosure [Abstract] | ||||
Gas in storage, LIFO | $ 0 | |||
Lessee, Lease, Description [Line Items] | ||||
Lessee, Operating Lease, Term of Contract | 108 years | |||
Minimum [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Lessee, Operating Lease, Term of Contract | 1 year | |||
Maximum [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Lessee, Operating Lease, Term of Contract | 15 years | |||
Gathering facilities | Minimum [Member] | ||||
Public Utility, Property, Plant and Equipment [Line Items] | ||||
Depreciation rates | 0.00% | 0.00% | 1.35% | |
Gathering facilities | Maximum [Member] | ||||
Public Utility, Property, Plant and Equipment [Line Items] | ||||
Depreciation rates | 1.00% | 1.00% | 2.50% | |
Storage facilities | Minimum [Member] | ||||
Public Utility, Property, Plant and Equipment [Line Items] | ||||
Depreciation rates | 1.86% | 1.86% | 2.10% | |
Storage facilities | Maximum [Member] | ||||
Public Utility, Property, Plant and Equipment [Line Items] | ||||
Depreciation rates | 2.05% | 2.05% | 2.25% | |
Onshore transmission facilities | Minimum [Member] | ||||
Public Utility, Property, Plant and Equipment [Line Items] | ||||
Depreciation rates | 2.50% | 2.50% | 2.61% | |
Onshore transmission facilities | Maximum [Member] | ||||
Public Utility, Property, Plant and Equipment [Line Items] | ||||
Depreciation rates | 7.13% | 7.13% | 5.00% | |
Offshore transmission facilities | Minimum [Member] | ||||
Public Utility, Property, Plant and Equipment [Line Items] | ||||
Depreciation rates | 1.25% | 1.25% | 1.20% | |
Offshore transmission facilities | Maximum [Member] | ||||
Public Utility, Property, Plant and Equipment [Line Items] | ||||
Depreciation rates | 1.25% | 1.25% | 1.20% | |
Pine Needle LNG Company LLC [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investment, ownership percentage | 35.00% | |||
Cardinal Pipeline Company LLC [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investment, ownership percentage | 45.00% |
Revenue Recognition Contract Li
Revenue Recognition Contract Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2018 | |
Revenue Recognition [Abstract] | |||
Contract with Customer, Liability | $ 215,596 | $ 226,164 | $ 236,730 |
Recognized in revenue | (10,568) | $ (10,566) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |||
Revenue Recognition [Abstract] | |||
Contract with Customer, Liability | 10,566 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |||
Revenue Recognition [Abstract] | |||
Contract with Customer, Liability | 10,566 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |||
Revenue Recognition [Abstract] | |||
Contract with Customer, Liability | 10,566 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |||
Revenue Recognition [Abstract] | |||
Contract with Customer, Liability | 10,568 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |||
Revenue Recognition [Abstract] | |||
Contract with Customer, Liability | 10,566 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |||
Revenue Recognition [Abstract] | |||
Contract with Customer, Liability | 162,764 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |||
Revenue Recognition [Abstract] | |||
Contract with Customer, Liability | 215,596 | ||
Remaining Performance Obligations [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenue, Remaining Performance Obligation, Amount | $ 2,349,047 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||
Remaining Performance Obligations [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenue, Remaining Performance Obligation, Amount | $ 2,196,621 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||
Remaining Performance Obligations [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenue, Remaining Performance Obligation, Amount | $ 2,040,685 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||
Remaining Performance Obligations [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenue, Remaining Performance Obligation, Amount | $ 1,487,964 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||
Remaining Performance Obligations [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenue, Remaining Performance Obligation, Amount | $ 1,453,924 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||
Remaining Performance Obligations [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenue, Remaining Performance Obligation, Amount | $ 12,231,530 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||
Remaining Performance Obligations [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenue, Remaining Performance Obligation, Amount | $ 21,759,771 | ||
Performance Obligations Related To Contract Liabilities [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||
Performance Obligations Related To Contract Liabilities [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||
Performance Obligations Related To Contract Liabilities [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||
Performance Obligations Related To Contract Liabilities [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||
Performance Obligations Related To Contract Liabilities [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||
Performance Obligations Related To Contract Liabilities [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Lessee, Lease, Description [Line Items] | |||
Operating lease cost | $ 9,691 | $ 10,276 | |
Variable lease cost | 3,135 | 6,867 | |
Total lease cost | 12,826 | 17,143 | |
Cash paid for amounts included in the measurement of operating lease liabilities | 3,690 | 9,986 | |
Right-of-use assets | 78,899 | 84,979 | |
Current (included in Accrued liabilites - Other in our Consolidated Balance Sheet | 6,222 | 811 | |
Lease liability | $ 78,688 | $ 84,528 | |
Weighted-average remaining lease term - operating leases (years) | 15 years | 15 years | |
Weighted-average discount rate - operating leases | 4.66% | 4.65% | |
Prior to adopting ASU 2016, total rent expense | $ 10,800 | ||
2021 | $ 9,471 | ||
2022 | 9,611 | ||
2023 | 9,614 | ||
2024 | 9,316 | ||
2025 | 9,065 | ||
Thereafter | 74,330 | ||
Total future lease payments | 121,407 | ||
Less amount representing interest | 36,497 | ||
Total obligations under operating leases | $ 84,910 |
Contingent Liabilities and Co_2
Contingent Liabilities and Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Jul. 01, 2020 | Dec. 31, 2019 | |
Other Commitments [Abstract] | |||
Commitments for construction and acquisition of property, plant, and equipment | $ 14,000 | ||
Reserve for rate refunds | 0 | $ 284,300 | $ 188,842 |
Environmental assessment and remediation | |||
Site Contingency [Line Items] | |||
Accrued environmental assessment and remediation costs, total | 2,400 | 2,500 | |
Accrued environmental assessment and remediation costs, current | 700 | 1,200 | |
Accrued environmental assessment and remediation costs, noncurrent | 1,700 | $ 1,300 | |
Potentially responsible party at various Superfund and state waste disposal sites | |||
Site Contingency [Line Items] | |||
Environmental assessment and remediation costs, best estimate | $ 500 |
Debt and Financing Arrangemen_3
Debt and Financing Arrangements Debt Disclosure (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | May 08, 2020 | |
Debt Instrument [Line Items] | ||||
Total long-term debt, including current portion | $ 5,286,643,000 | $ 5,286,643,000 | $ 4,098,480,000 | |
Other financing obligation | 1,104,143,000 | 1,104,143,000 | 1,115,980,000 | |
Unamortized debt issuance costs | (32,505,000) | (32,505,000) | (22,876,000) | |
Unamortized debt premium and discount, net | (14,358,000) | (14,358,000) | (10,634,000) | |
Long-term debt due within one year | 22,640,000 | 22,640,000 | 20,180,000 | |
Total long-term debt | 5,217,140,000 | 5,217,140,000 | 4,044,790,000 | |
Long-term Debt, Fiscal Year Maturity [Abstract] | ||||
2021 | 22,640,000 | 22,640,000 | ||
2022 | 24,762,000 | 24,762,000 | ||
2023 | 27,082,000 | 27,082,000 | ||
2024 | 29,621,000 | 29,621,000 | ||
2025 | 32,397,000 | 32,397,000 | ||
3.25% due 2030 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt face amount | $ 700,000,000 | |||
Long-term debt interest rate | 3.25% | |||
3.95 due 2050 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt face amount | $ 500,000,000 | |||
Long-term debt interest rate | 3.95% | |||
Dalton Expansion Project [Member] | ||||
Debt Instrument [Line Items] | ||||
Other financing obligation | 700,000 | |||
Long-term debt face amount | 254,400,000 | 254,400,000 | 256,800,000 | |
Other Long-term Debt, Current | 2,300,000 | 2,300,000 | 2,100,000 | |
Atlantic Sunrise Project [Member] | ||||
Debt Instrument [Line Items] | ||||
Other financing obligation | 827,100,000 | 827,100,000 | 839,000,000 | |
Additions to other financing obligations | 25,000,000 | 8,700,000 | 40,800,000 | |
Other Long-term Debt, Current | 20,300,000 | 20,300,000 | 18,100,000 | |
Property pledged as collateral | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt | $ 0 | $ 0 | ||
9.0 % Other Financing Obligations [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt interest rate | 9.00% | 9.00% | ||
Debentures | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt, including current portion | $ 207,500,000 | $ 207,500,000 | 207,500,000 | |
Debentures | 7.08% due 2026 [Member] | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt, including current portion | 7,500,000 | 7,500,000 | 7,500,000 | |
Debentures | 7.25% due 2026 [Member] | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt, including current portion | 200,000,000 | 200,000,000 | 200,000,000 | |
Notes | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt, including current portion | 3,975,000,000 | 3,975,000,000 | 2,775,000,000 | |
Notes | 7.85% due 2026 | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt, including current portion | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | |
Notes | 4.0% due 2028 [Member] | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt, including current portion | 400,000,000 | 400,000,000 | 400,000,000 | |
Notes | 3.25% due 2030 [Member] | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt, including current portion | 700,000,000 | 700,000,000 | 0 | |
Notes | 5.4% due 2041 [Member] | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt, including current portion | 375,000,000 | 375,000,000 | 375,000,000 | |
Notes | 4.45% due 2042 [Member] | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt, including current portion | 400,000,000 | 400,000,000 | 400,000,000 | |
Notes | 4.6 % due 2048 [Member] | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt, including current portion | 600,000,000 | 600,000,000 | 600,000,000 | |
Notes | 3.95 due 2050 [Member] | ||||
Debt Instrument [Line Items] | ||||
Total long-term debt, including current portion | $ 500,000,000 | $ 500,000,000 | $ 0 |
Debt and Financing Arrangemen_4
Debt and Financing Arrangements Line of Credit Facility (Details) - USD ($) | Dec. 31, 2020 | Jul. 13, 2018 |
Swing Line Advances [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 200,000,000 | |
$4.5 billion credit facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, maximum borrowing capacity | 500,000,000 | |
Letter of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, maximum borrowing capacity | 500,000,000 | |
Williams Companies Inc [Member] | Commercial paper [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, maximum borrowing capacity | 4,000,000,000 | |
Commercial paper, amount outstanding | $ 0 | |
Williams Companies Inc [Member] | $4.5 billion credit facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, amount outstanding | 0 | |
Line of credit facility, maximum borrowing capacity | 4,500,000,000 | |
Additional amount by which credit facility can be increased | 500,000,000 | |
Letters of credit outstanding, amount | $ 0 | |
Williams Companies Inc [Member] | Letter of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 1,000,000,000 |
ARO Trust (Details)
ARO Trust (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Mar. 01, 2020 | Dec. 31, 2019 | Mar. 01, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||||
Trading Securities, Equity, Cost | $ 174.8 | $ 167.6 | ||
Trading Securities, Equity | 235.5 | 200.6 | ||
Money Market Funds | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Trading Securities, Equity, Cost | 5.8 | 15.8 | ||
Trading Securities, Equity | 5.8 | 15.8 | ||
U.S. Equity Funds | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Trading Securities, Equity, Cost | 59.9 | 55.3 | ||
Trading Securities, Equity | 108 | 83.3 | ||
International Equity Funds | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Trading Securities, Equity, Cost | 34.2 | 31.8 | ||
Trading Securities, Equity | 43.7 | 35.4 | ||
Municipal Bond Funds | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Trading Securities, Equity, Cost | 74.9 | 64.7 | ||
Trading Securities, Equity | $ 78 | $ 66.1 | ||
External ARO trust [Member] | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Annual funding obligation | $ 16 | |||
External ARO trust [Member] | Rate Case filing [Member] | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Annual funding obligation | $ 35.9 | |||
External ARO trust [Member] | Rate Case settlement [Member] | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Annual funding obligation | $ 23.8 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Quoted Prices In Active Markets for Identical Assets (Level 1) | ||
Additional Fair Value Elements [Abstract] | ||
Long-term debt. including current portion | $ 0 | $ 0 |
Significant Other Oberservable Inputs (Level 2) | ||
Additional Fair Value Elements [Abstract] | ||
Long-term debt. including current portion | (6,949) | (5,251.4) |
Significant Unobservable Inputs (Level 3) | ||
Additional Fair Value Elements [Abstract] | ||
Long-term debt. including current portion | 0 | 0 |
Carrying Amount | ||
Additional Fair Value Elements [Abstract] | ||
Long-term debt. including current portion | (5,239.8) | (4,065) |
Fair Value | ||
Additional Fair Value Elements [Abstract] | ||
Long-term debt. including current portion | (6,949) | (5,251.4) |
Fair Value, Nonrecurring | Significant Unobservable Inputs (Level 3) | ||
Additional Fair Value Elements [Abstract] | ||
Property, Plant, and Equipment, Fair Value Disclosure | 41.5 | |
Tangible Asset Impairment Charges | 170.1 | |
ARO Trust investments | Quoted Prices In Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
ARO Trust investments | 235.5 | 200.6 |
ARO Trust investments | Significant Other Oberservable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
ARO Trust investments | 0 | 0 |
ARO Trust investments | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
ARO Trust investments | 0 | 0 |
ARO Trust investments | Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
ARO Trust investments | 235.5 | 200.6 |
ARO Trust investments | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
ARO Trust investments | $ 235.5 | $ 200.6 |
Benefit Plans (Details)
Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Regulatory liabilities | $ 1,003.9 | $ 1,024.3 | |
Defined contribution plan, cost recognized | 9.5 | 7.9 | $ 7.9 |
Salary and Wage, Excluding Cost of Good and Service Sold [Abstract] | |||
Allocated share-based compensation expense | 4 | 5.9 | 6.3 |
Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension cost | 9.1 | 9.6 | 12.8 |
Pension Plan [Member] | Directly charged [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension cost charges to us by Williams | 3.7 | 2.7 | |
Pension - unamortized liability | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Regulatory liability, deferred for future rate treatment | $ 38.9 | 43.3 | |
Regulatory Liability, Amortization Period | 5 years | ||
Other Postretirement Benefits Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Other postretirement benefit (income) expense | $ (4.5) | (4.1) | $ (5.9) |
Regulatory liabilities | $ 60.9 | $ 68 | |
Regulatory Liability, Amortization Period | 5 years |
Transactions with Major Custo_3
Transactions with Major Customers and Affiliates (Details) $ in Thousands | Dec. 31, 2019USD ($) | Feb. 28, 2021USD ($) | Dec. 31, 2020USD ($)employee | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Related Party Transaction [Line Items] | |||||
Advances from affiliate | $ 252,549 | $ 0 | $ 252,549 | ||
Advances to affiliate | 0 | $ 642,734 | 0 | ||
Related party transaction, rate | 0.01% | ||||
Entity number of employees | employee | 0 | ||||
Expenses, related party | $ 352,100 | 412,400 | $ 395,300 | ||
Severance Costs | 28,800 | ||||
Cash distributions to parent | (1,020,000) | (824,000) | (490,000) | ||
Cash contributions from parent | 115,000 | 0 | 340,000 | ||
Non-cash distribution of investments in subsidiaries | 36,600 | ||||
Subsequent Event [Member] | |||||
Related Party Transaction [Line Items] | |||||
Cash contributions from parent | $ 60,000 | ||||
Affiliated Entity [Member] | |||||
Related Party Transaction [Line Items] | |||||
Operating revenues, related party | 11,400 | 10,500 | 10,100 | ||
Cost of natural gas sales, related party | 5,600 | 4,000 | 5,400 | ||
Expenses, related party | (5,100) | (4,400) | (4,700) | ||
Williams Companies Inc [Member] | |||||
Related Party Transaction [Line Items] | |||||
Advances from affiliate | 642,700 | ||||
Advances to affiliate | $ 252,500 | 252,500 | |||
Cash distributions to parent | (1,020,000) | (824,000) | (490,000) | ||
Atlantic Sunrise Project [Member] | |||||
Related Party Transaction [Line Items] | |||||
Additions to other financing obligations | 25,000 | ||||
Dominion Energy, Inc. | |||||
Revenue, Major Customer [Line Items] | |||||
Operating revenues | 248,500 | 250,700 | 113,500 | ||
Duke Energy Corporation | |||||
Revenue, Major Customer [Line Items] | |||||
Operating revenues | 232,800 | 222,500 | 194,500 | ||
The Southern Company, Inc. | |||||
Revenue, Major Customer [Line Items] | |||||
Operating revenues | $ 216,400 | $ 216,100 | $ 166,200 |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Beginning balance | $ 459,209 | $ 394,323 |
Accretion | 23,142 | 21,806 |
New obligations | 1,154 | 103 |
Changes in estimates of existing obligations (1) | (21,889) | 49,070 |
Property dispositions/obligations settled | (11,115) | (6,093) |
Ending balance | $ 450,501 | $ 459,209 |
Regulatory Assets and Liabili_3
Regulatory Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Regulatory Assets [Line Items] | ||
Regulatory assets | $ 344.7 | $ 360.4 |
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | 1,003.9 | 1,024.3 |
Negative salvage | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | 504.5 | 482.6 |
Deferred taxes - liability | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | 392.8 | 423.5 |
Sentinel meter station depreciation | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | 6.8 | 6.6 |
Postretirement benefits other than pension | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | 60.9 | 68 |
Pension- unamortized liability | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | 38.9 | 43.3 |
Other | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities | 0 | 0.3 |
Grossed-up deferred taxes on equity funds used during construction | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 36.1 | 37.5 |
Asset retirement obligations | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 139.5 | 147.6 |
Asset retirement costs - Eminence | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 36.6 | 42.2 |
Deferred cash out | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 70 | 64.4 |
Fuel Cost | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 34.1 | 40.2 |
Electric power cost | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 7.8 | 8.4 |
Slug catcher | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 6.4 | 6.6 |
Other | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | $ 14.2 | $ 13.5 |