Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 21, 2024 | Jun. 30, 2023 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
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 | 2023 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Common Stock, Shares Outstanding | 0 | ||
Entity Public Float | $ 0 | ||
DocumentFinStmtErrorCorrectionFlag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Name | Ernst & Young LLP |
Auditor Location | Houston, Texas |
Auditor Firm ID | 42 |
Statement of Net Income
Statement of Net Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating Revenues: | |||
Revenues | $ 2,866,196 | $ 2,909,135 | $ 2,654,800 |
Operating Costs and Expenses: | |||
Cost of natural gas sales | 136,556 | 179,410 | 88,328 |
General and administrative | 214,973 | 224,539 | 220,378 |
Operation and maintenance | 517,408 | 530,871 | 413,882 |
Depreciation and amortization | 519,045 | 512,969 | 489,524 |
Taxes — other than income taxes | 104,715 | 97,881 | 92,661 |
Regulatory credit resulting from tax rate changes | (31,540) | (16,728) | (30,752) |
Other (income) expense, net | (6,173) | 9,709 | 13,441 |
Total operating costs and expenses | 1,454,984 | 1,538,651 | 1,287,462 |
Operating Income | 1,411,212 | 1,370,484 | 1,367,338 |
Other (Income) and Other Expenses: | |||
Interest expense | 323,592 | 327,226 | 322,698 |
Interest income | (86,932) | (35,843) | (4,714) |
Allowance for equity and borrowed funds used during construction (AFUDC) | (77,176) | (28,248) | (22,125) |
Miscellaneous other (income) expense, net | 4,523 | 7,663 | 5,311 |
Total other (income) and other expenses | 164,007 | 270,798 | 301,170 |
Net Income | 1,247,205 | 1,099,686 | 1,066,168 |
Natural gas transportation | |||
Operating Revenues: | |||
Revenues | 2,506,127 | 2,502,959 | 2,378,940 |
Natural gas storage | |||
Operating Revenues: | |||
Revenues | 185,572 | 192,899 | 167,800 |
Natural gas sales | |||
Operating Revenues: | |||
Revenues | 136,556 | 179,410 | 88,328 |
Other | |||
Operating Revenues: | |||
Revenues | $ 37,941 | $ 33,867 | $ 19,732 |
Balance Sheet
Balance Sheet - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current Assets: | ||
Cash | $ 0 | $ 0 |
Receivables: | ||
Other | 10,572 | 2,795 |
Transportation and exchange gas receivables | 2,803 | 9,256 |
Inventories: | ||
Materials and supplies, at average cost | 42,904 | 43,738 |
Gas available for customer nomination, at average cost | 39,832 | 48,289 |
Gas in storage, at original cost | 752 | 1,079 |
Regulatory assets | 87,198 | 123,903 |
Other | 11,835 | 32,838 |
Total current assets | 1,809,141 | 2,348,542 |
Property, plant and equipment | 19,293,599 | 18,239,745 |
Less-Accumulated depreciation and amortization | 5,963,213 | 5,552,377 |
Total property, plant and equipment, net | 13,330,386 | 12,687,368 |
Other Assets: | ||
Regulatory assets | 299,099 | 298,793 |
Right-of-use assets | 53,255 | 59,235 |
Other | 296,408 | 265,651 |
Total other assets | 648,762 | 623,679 |
Total assets | 15,788,289 | 15,659,589 |
Payables: | ||
Cash overdrafts | 15,374 | 13,589 |
Transportation and exchange gas payables | 6,433 | 5,140 |
Accrued liabilities: | ||
Interest | 76,000 | 76,255 |
Asset retirement obligations | 95,540 | 27,484 |
Regulatory liabilities | 49,259 | 57,047 |
Property and other taxes | 28,738 | 30,526 |
Customer deposits | 35,046 | 28,498 |
Customer advances | 17,183 | 11,535 |
Other | 26,795 | 20,462 |
Long-term debt due within one year | 31,718 | 28,532 |
Total current liabilities | 700,266 | 538,277 |
Long-Term Debt | 5,229,450 | 5,251,799 |
Other Long-Term Liabilities: | ||
Regulatory liabilities | 955,628 | 963,969 |
Asset retirement obligations | 523,741 | 535,479 |
Contract liabilities | 173,332 | 183,898 |
Lease liability | 56,353 | 63,074 |
Other | 11,920 | 12,699 |
Total other long-term liabilities | 1,720,974 | 1,759,119 |
Contingent Liabilities and Commitments (Note 4) | ||
Member’s Equity: | ||
Member's capital | 5,088,499 | 5,088,499 |
Retained earnings | 3,049,100 | 3,021,895 |
Total member's equity | 8,137,599 | 8,110,394 |
Total liabilities and member's equity | 15,788,289 | 15,659,589 |
Related Party [Member] | ||
Receivables: | ||
Advances to affiliate | 1,352,927 | 1,813,480 |
Trade | 9,559 | 8,205 |
Affiliates | 9,559 | 8,205 |
Payables: | ||
Affiliates | 54,817 | 54,303 |
Nonrelated Party [Member] | ||
Receivables: | ||
Trade | 250,759 | 264,959 |
Affiliates | 250,759 | 264,959 |
Payables: | ||
Trade | $ 263,363 | $ 184,906 |
Statement of Changes in Member'
Statement of Changes in Member's Equity - USD ($) $ in Thousands | Total | Member's Capital | Retained Earnings |
Balance at beginning of period at Dec. 31, 2020 | $ 4,543,499 | $ 2,037,320 | |
Cash contributions from parent | $ 417,000 | 417,000 | |
Net income | 1,066,168 | 1,066,168 | |
Cash distributions to parent | (343,731) | (343,731) | |
Balance at end of period at Dec. 31, 2021 | 7,720,256 | 4,960,499 | 2,759,757 |
Cash contributions from parent | 128,000 | 128,000 | |
Net income | 1,099,686 | 1,099,686 | |
Cash distributions to parent | (837,548) | (837,548) | |
Balance at end of period at Dec. 31, 2022 | 8,110,394 | 5,088,499 | 3,021,895 |
Cash contributions from parent | 0 | 0 | |
Net income | 1,247,205 | 1,247,205 | |
Cash distributions to parent | (1,220,000) | (1,220,000) | |
Balance at end of period at Dec. 31, 2023 | $ 8,137,599 | $ 5,088,499 | $ 3,049,100 |
Statement of Cash Flows
Statement of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
OPERATING ACTIVITIES: | |||
Net income | $ 1,247,205 | $ 1,099,686 | $ 1,066,168 |
Adjustments to reconcile net cash provided (used) by operating activities: | |||
Depreciation and amortization | 519,045 | 512,969 | 489,524 |
Allowance for equity funds used during construction (equity AFUDC) | (62,852) | (22,962) | (17,080) |
Regulatory credit resulting from tax rate changes | (31,540) | (16,728) | (30,752) |
Changes in current assets and liabilities: | |||
Affiliate receivables | (1,354) | (1,227) | (5,967) |
Trade and other accounts receivable | 6,422 | (20,095) | (15,355) |
Transportation and exchange gas receivables | 6,453 | (1,571) | (3,058) |
Inventories | 9,618 | (38,669) | 1,860 |
Regulatory assets | 36,705 | (9,552) | (51,490) |
Other current assets | 21,003 | (15,780) | (3,211) |
Affiliate payables | 514 | (14,825) | 36,452 |
Trade accounts payable | (18,251) | 20,873 | 953 |
Transportation and exchange gas payables | 1,293 | (4,985) | 8,220 |
Accrued liabilities | 71,106 | (25,528) | (6,585) |
Other, including changes in long-term assets and liabilities | (89,818) | 54,390 | (21,023) |
Net cash provided (used) by operating activities | 1,715,549 | 1,515,996 | 1,448,656 |
FINANCING ACTIVITIES: | |||
Proceeds from other financing obligations | 6,544 | 8,506 | 3,297 |
Payments on other financing obligations | (28,703) | (25,623) | (22,635) |
Payments for debt issuance costs | 0 | (16) | (59) |
Cash distributions to parent | (1,220,000) | (837,548) | (343,731) |
Cash contributions from parent | 0 | 128,000 | 417,000 |
Net cash provided (used) by financing activities | (1,242,159) | (726,681) | 53,872 |
Property, plant and equipment; | |||
Capital expenditures | (894,490) | (602,969) | (481,280) |
Contributions and advances for construction costs | 21,173 | 953 | 36,945 |
Disposal of property, plant and equipment, net | (51,466) | (32,724) | (32,565) |
Advances to affiliate, net | 460,553 | (144,112) | (1,026,634) |
Purchase of ARO Trust investments | (22,334) | (20,797) | (28,804) |
Proceeds from sale of ARO Trust investments | 13,174 | 10,334 | 29,810 |
Net cash provided (used) by investing activities | (473,390) | (789,315) | (1,502,528) |
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 | (991,100) | (587,203) | (512,293) |
Changes in related accounts payable and accrued liabilities | 96,610 | (15,766) | 31,013 |
Capital expenditures | (894,490) | (602,969) | (481,280) |
Supplemental disclosures of cash flow information: | |||
Interest (net of amounts capitalized) | 306,968 | 325,563 | 313,828 |
Income taxes | $ 87 | $ 67 | $ 127 |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Notes) | 12 Months Ended |
Dec. 31, 2023 | |
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, Transcontinental Gas Pipe Line Company, LLC (Transco) is at times referred to in the first person as “we,” “us” or “our.” Transco is indirectly owned by The Williams Companies, Inc. (Williams), a publicly traded Delaware corporation. 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. 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, 2023, the remaining property, plant and equipment allocation was approximately $0.4 billion. Current FERC policy does not permit us to recover through rates amounts in excess of original cost. Summary of Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Significant estimates and assumptions include: • Litigation-related contingencies; • Environmental remediation obligations; • Impairment assessments of long-lived assets; • Depreciation; • Asset retirement obligations; and • Measurement of regulatory assets and liabilities. These estimates are discussed further throughout these notes. Regulatory Accounting We are regulated by the Federal Energy Regulatory Commission (FERC). Accounting Standards Codification (ASC) Topic 980, “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 financial statements include the effects of the types of transactions described above that result from regulatory accounting requirements. Revenue Recognition Our customers are comprised of public utilities, municipalities, natural gas marketers and producers, intrastate pipelines, direct industrial users, and electric 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 pipeline business and are not within the scope of ASC Topic 606, “Revenues from Contracts with Customers.” 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 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. At December 31, 2023 and 2022, we had no such rate refund liabilities. 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 below). 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 - Contract liabilities , respectively, in our 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, 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 Balance Sheet for operating leases based on the present value of the future lease payments. 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 30 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 use 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 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 with limited exceptions. 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 using the straight-line method at 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. The following table presents Total property, plant and equipment, net as presented on the Balance Sheet: Depreciation Rate December 31, 2023 2022 (Thousands) Onshore transmission facilities 2.50% - 7.13% $ 16,030,815 $ 15,379,968 Offshore transmission facilities 1.25% 681,216 639,354 Storage facilities 1.86% - 2.05% 830,071 814,882 Gathering facilities 0% - 1.00% 157,817 176,305 Construction in progress Not applicable 1,008,006 661,033 Other 1.77% - 20.00% 585,674 568,203 Property, plant and equipment 19,293,599 18,239,745 Less-Accumulated depreciation and amortization 5,963,213 5,552,377 Total property, plant and equipment, net $ 13,330,386 $ 12,687,368 We record a liability and increase the basis in the underlying asset for the present value of each expected future ARO at the time the liability is initially incurred, typically when the asset is acquired or constructed. Measurements of ARO 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 generally 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 our 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 ASC Topic 360, “Property, Plant, and Equipment,” 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 $14.3 million, $5.2 million, and $5.0 million, for 2023, 2022 and 2021, respectively. The allowance for equity funds was $62.9 million, $23.0 million, and $17.1 million, for 2023, 2022 and 2021, 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 Accounts receivable are carried on a gross basis less an allowance for doubtful accounts. We estimate the allowance for doubtful accounts, considering current expected credit losses using a forward-looking “expected loss” model, the financial condition of our customers, and the age of past due accounts. 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 analyses, such as bankruptcy monitoring, if applicable. 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. 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. 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, 2023 and 2022. 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 (see Deferred Cash Out below) or through the receipt or delivery of gas in the future and are recorded in the accompanying 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, 2023 and 2022. 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 applied to any prior under recovery balance or 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. Materials and Supplies Inventory All materials and supplies inventory is 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. The reserve for inventory was $4.4 million at December 31, 2023, and there was a minimal reserve at December 31, 2022. 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 – Benefit Plans). 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 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. |
Revenue Recognition (Notes)
Revenue Recognition (Notes) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Revenue by Category Our revenue disaggregation by major service line includes Natural gas transportation , Natural gas storage, Natural gas sales , and Other , which are separately presented on the Statement of Net Income. Contract Liabilities The following table presents a reconciliation of our contract liabilities: Year Ended December 31, 2023 2022 (Thousands) Balance at beginning of period $ 194,464 $ 205,030 Recognized in revenue (10,566) (10,566) Balance at end of period $ 183,898 $ 194,464 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 periodic review and approval by the FERC, reflect the rates for such services in our current FERC tariffs for the life of the related contracts; however, these rates may change based on future rate cases or settlements approved by the FERC. This table excludes the variable consideration component for commodity charges. Certain of our contracts contain evergreen and other renewal provisions for periods beyond the initial term of the contract. The remaining performance obligations as of December 31, 2023, do not consider potential future performance obligations for which the renewal has not been exercised and exclude 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, 2023. Contract Liabilities Remaining Performance Obligations (Thousands) 2024 (one year) $ 10,568 $ 2,570,901 2025 (one year) 10,566 2,307,268 2026 (one year) 10,566 2,215,340 2027 (one year) 10,566 1,658,531 2028 (one year) 10,568 1,539,513 Thereafter 131,064 9,499,369 Total $ 183,898 $ 19,790,922 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, 2023 | |
Leases [Abstract] | |
Leases | 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. Year Ended December 31, 2023 2022 2021 (Thousands) Lease Cost: Operating lease cost $ 9,042 $ 9,445 $ 9,292 Variable lease cost 7,160 6,877 4,764 Total lease cost $ 16,202 $ 16,322 $ 14,056 Cash paid for operating lease liabilities $ 9,809 $ 9,715 $ 9,554 December 31, 2023 2022 (Thousands) Other Information: Right-of-use assets $ 53,255 $ 59,235 Operating lease liabilities: Current (included in Accrued liabilities - Other on our Balance Sheet) $ 6,495 $ 6,482 Lease liability $ 56,353 $ 63,074 Weighted-average remaining lease term - operating leases (years) 13 13 Weighted-average discount rate - operating leases 4.73% 4.69% As of December 31, 2023, 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) 2024 $ 9,443 2025 8,571 2026 9,200 2027 9,472 2028 9,473 Thereafter 42,893 Total future lease payments 89,052 Less amount representing interest 26,204 Total obligations under operating leases $ 62,848 |
Contingent Liabilities and Comm
Contingent Liabilities and Commitments (Notes) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingent Liabilities and Commitments | Contingent Liabilities and Commitments 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. We also have a program for monitoring certain environmental activities at our Eminence storage facility. At December 31, 2023, we had a liability of approximately $ 10.5 million 0.6 million Accrued liabilities - Other and $ 9.9 million Other Long-Term Liabilities - Other on the Balance Sheet. At December 31, 2022, we had a liability of approximately $ 11.8 million 1.4 million Accrued liabilities - Other and $ 10.4 million Other Long-Term Liabilities - Other on the 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 propose and promulgate 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, review and updates to the National Ambient Air Quality Standards, and rules for new and existing source performance standards for volatile organic compounds and methane. We continuously monitor these regulatory changes and how they may impact our operations. Implementation of new or modified regulations may result in impacts to our operations and increase the cost of additions to Total property, plant and equipment, net on the Balance Sheet for both new and existing facilities in affected areas; however due to regulatory uncertainty on final rule content and applicability timeframes, we are unable to reasonably estimate the cost of these regulatory impacts at this time. We consider prudently incurred environmental assessment and remediation costs and the costs associated with compliance with environmental standards to be recoverable through rates. Historically, with limited exceptions, 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 |
Debt and Financing Arrangements
Debt and Financing Arrangements (Notes) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt and Financing Arrangements | Debt and Financing Arrangements Long-Term Debt December 31, 2023 2022 (Thousands) 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 700,000 700,000 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 500,000 500,000 Total notes 3,975,000 3,975,000 Other financing obligations 1,116,360 1,138,773 Total long-term debt, including current portion 5,298,860 5,321,273 Unamortized debt issuance costs (25,688) (28,113) Unamortized debt premium and discount, net (12,004) (12,829) Long-term debt due within one year (31,718) (28,532) Total long-term debt $ 5,229,450 $ 5,251,799 The following table presents aggregate minimum maturities of long-term debt and other financing obligations outstanding at December 31, 2023, excluding net unamortized debt premium (discount) and debt issuance costs, for each of the next five years (in thousands): 2024 $ 31,718 2025 $ 34,675 2026 $ 1,245,411 2027 $ 41,452 2028 $ 445,325 No property is pledged as collateral under any of our long-term debt. Other Financing Obligations During the construction of the Dalton, Atlantic Sunrise and Leidy South Expansion projects, we received funding from co-owners for their proportionate share of construction costs. Amounts received were recorded in Other Long-Term Liabilities and the costs associated with construction were capitalized in our 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 debt. The obligations, which mature in 2052, 2038 and 2041, respectively, require monthly interest and principal payments and bear interest rates of approximately 9 percent, 9 percent and 13 percent, respectively. Dalton Expansion Project At December 31, 2023 and 2022, the amount included in Long-Term Debt on our Balance Sheet for this financing obligation was $246.8 million and $249.4 million, and the amount included in Long-term debt due within one year on our Balance Sheet for this financing obligation was $3.0 million and $2.8 million, respectively. Atlantic Sunrise Project During 2023 and 2022, we received $6.1 million and $2.2 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. At December 31, 2023 and 2022, the amount included in Long-Term Debt on our Balance Sheet for this financing obligation was $762.8 million and $784.6 million, and the amount included in Long-term debt due within one year on our Balance Sheet for this financing obligation was $27.4 million and $24.6 million, respectively. Leidy South Project During 2022, we received $6.0 million of additional funding from our co-owner for its proportionate share of construction costs related to its undivided ownership interest in Leidy South. At December 31, 2023 and 2022, the amount included in Long-Term Debt on our Balance Sheet for this financing obligation was $75.0 million and $76.2 million, and the amount included in Long-term debt due within one year on our Balance Sheet for this financing obligation was $1.3 million and $1.1 million, respectively. Long-Term Debt Due Within One Year The long-term debt due within one year at December 31, 2023 and 2022, are associated with the previously described other financing obligations. Credit Facility In October 2021, we, along with Williams and Northwest Pipeline LLC, the lenders named therein, and an administrative agent entered into an amended and restated credit agreement (Credit Agreement) that reduced aggregate commitments available from $4.5 billion to $3.75 billion, with up to an additional $500 million increase in aggregate commitments available under certain circumstances. The Credit Agreement was effective on October 8, 2021. In the second quarter of 2023, the maturity date of our Credit Agreement was extended one year and now expires October 8, 2027. The amended Credit Agreement allows the co-borrowers to request up to two extensions of the maturity date each for an additional one-year period to allow a maturity date as late as October 8, 2029, under certain circumstances. Additionally, the amended Credit Agreement replaces the London Interbank Offered Rate with the Term Secured Overnight Financing Rate as the benchmark interest rate index. The Credit Agreement allows for swing line loans up to an aggregate of $200 million, subject to available capacity under the credit facility, and letters of credit commitments of $500 million. We and Northwest Pipeline LLC are each able to borrow up to $500 million under the credit facility to the extent not otherwise utilized by the other co-borrowers. At December 31, 2023, no letters of credit have been issued and no loans to Williams were outstanding under the credit facility. The Credit Agreement contains the following terms and conditions: • 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 in certain circumstances, make certain distributions during an event of default, and each borrower and each borrower’s respective material subsidiaries’ ability to enter into certain restrictive agreements. • 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 the loans of the defaulting borrower under the credit facility 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 an alternative base rate as defined in the Credit Agreement plus an applicable margin or a periodic fixed rate equal to the Term Secured Overnight Financing Rate plus an applicable margin. Williams is required to pay a commitment fee based on the unused portion of the credit facility. The applicable margin is determined by reference to a pricing schedule based on the applicable borrower’s senior unsecured long-term debt ratings and the commitment fee is determined by reference to a pricing schedule based on Williams’ senior unsecured long-term debt ratings. The ratio of debt to capitalization (defined as net worth plus debt), each as defined in the Credit Agreement, must be no greater than 65 percent for each of Northwest Pipeline LLC and us. Commercial Paper Program |
ARO Trust (Notes)
ARO Trust (Notes) | 12 Months Ended |
Dec. 31, 2023 | |
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. The financial instruments held in our ARO Trust are measured at fair value and reported in Other Assets - Other on the Balance Sheet. However, in accordance with Topic 980, both realized and unrealized gains and losses of the ARO Trust are ultimately recorded as regulatory assets or liabilities. Pursuant to the approved stipulation and agreement in Docket No. RP18-1126 the annual funding obligation effective March 1, 2020 is approximately $16.0 million, with deposits made monthly. Investments within the ARO Trust were as follows (in millions): December 31, 2023 December 31, 2022 Amortized Fair Amortized Fair Money Market Funds $ 25.5 $ 25.5 $ 16.4 $ 16.4 U.S. Equity Funds 52.7 119.8 52.7 96.1 International Equity Funds 31.7 39.2 31.6 35.2 Municipal Bond Funds 87.7 84.4 87.7 82.0 Total $ 197.6 $ 268.9 $ 188.4 $ 229.7 |
Fair Value Measurements (Notes)
Fair Value Measurements (Notes) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following table presents, by level within the fair value hierarchy, certain of our significant financial assets and liabilities. The carrying values of short-term financial assets that have variable interest rates (advances to affiliate), 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, 2023: Measured on a recurring basis: ARO Trust investments $ 268.9 $ 268.9 $ 268.9 $ — $ — Additional disclosures: Long-term debt, including current portion (5,261.2) (5,438.4) — (5,438.4) — Assets (liabilities) at December 31, 2022: Measured on a recurring basis: ARO Trust investments $ 229.7 $ 229.7 $ 229.7 $ — $ — Additional disclosures: Long-term debt, including current portion (5,280.3) (5,361.7) — (5,361.7) — 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: 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 ARO. 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 Balance Sheet. However, both realized and unrealized gains and losses are ultimately recorded as regulatory assets or liabilities. See Note 6 – ARO Trust for more information. Long-term debt, including current portion : 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 value of the financing obligations associated with our Dalton, Atlantic Sunrise and Leidy South projects were determined using an income approach (see Note 5 – Debt and Financing Arrangements). |
Benefit Plans (Notes)
Benefit Plans (Notes) | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Benefit Plans | 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 (see Note 9 – Transactions with Major Customers and Affiliates). 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 hired prior to January 1, 2019. Pension costs charged to us by Williams were $1.6 million, $3.7 million and $4.1 million for 2023, 2022, and 2021, respectively. Williams makes annual cash contributions to the pension plans, based on annual actuarial estimates, which we recover 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, 2023 and 2022 were $25.7 million and $30.1 million, respectively. Also 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 medical benefits to a closed group of participants as well as retiree life insurance to eligible participants. We recognized other postretirement benefit income of $5.9 million, $4.6 million and $4.7 million for 2023, 2022, and 2021, 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 amounts of other postretirement benefits costs deferred as regulatory liabilities at December 31, 2023 and 2022 are $31.1 million and $40.2 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 $11.8 million, $11.1 million, and $11.4 million in 2023, 2022, and 2021, respectively, for Williams’ company contributions to this plan. Employee Stock-Based Compensation Plan Information The Williams Companies, Inc. 2007 Incentive Plan (the Plan), as subsequently amended and restated, 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, 2023, 2022, and 2021 was $5.7 million, $6.0 million, and $5.9 million, respectively, excluding amounts allocated from Williams. |
Transactions with Major Custome
Transactions with Major Customers and Affiliates (Notes) | 12 Months Ended |
Dec. 31, 2023 | |
Transactions with Major Customers and Affiliates [Abstract] | |
Transactions with Major Customers and Affiliates | Transactions with Major Customers and Affiliates Major Customers Dominion Energy, Inc. accounted for $287.0 million (10 percent), $293.4 million (10 percent) and $297.7 million (11 percent) of our operating revenues during the years ended December 31, 2023, 2022, and 2021, respectively. No other customers accounted for 10 percent or more of our revenues during any of the three years ended December 31, 2023. Affiliates We are a participant in Williams’ cash management program, and we make advances to and receive advances from Williams. At December 31, 2023 and 2022, our advances to Williams totaled approximately $1.4 billion and $1.8 billion, respectively. These advances are represented by demand notes and are classified as Receivables - Advances to affiliate on the Balance Sheet. Advances are stated at the historical carrying amounts. Interest expense and income are recognized when earned and the 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, which was approximately 5.2 percent at December 31, 2023. The interest income from these advances was $80.5 million, $31.0 million, and $0.1 million during years ended December 31, 2023, 2022, and 2021, respectively. Such interest income is included in Other (Income) and Other Expenses - Interest income on the Statement of Net Income. Included in Operating Revenues on the Statement of Net Income for 2023, 2022, and 2021 are revenues received from affiliates of $56.3 million, $89.4 million, and $37.4 million, respectively. Included in Cost of natural gas sales on the Statement of Net Income for 2023, 2022, and 2021 are costs of gas purchased from affiliates of $7.2 million, $17.8 million, and $7.9 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 have recorded $324.1 million, $345.0 million, and $329.7 million for the years ended December 31, 2023, 2022, and 2021, respectively, for these service expenses, which are primarily included in Operation and maintenance and General and administrative expenses on the Statement of Net Income. We provide services to certain of our affiliates. We recorded reductions in operating expenses for services provided to and reimbursed by our affiliates of $13.8 million, $9.8 million, and $7.3 million for the years ended December 31, 2023, 2022, and 2021, respectively. During January 2024, we declared and paid a cash distribution of $320.0 million to our parent. |
Asset Retirement Obligations (N
Asset Retirement Obligations (Notes) | 12 Months Ended |
Dec. 31, 2023 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | Asset Retirement Obligations Our accrued asset retirement 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. Our overall asset retirement obligation changed as follows: Year Ended December 31, 2023 2022 (Thousands) Beginning balance $ 562,963 $ 518,387 Accretion 31,002 27,516 New obligations 8,749 15,218 Changes in estimates of existing obligations (1) 39,948 8,395 Property dispositions/obligations settled (23,381) (6,553) Ending balance $ 619,281 $ 562,963 ______________________ (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 2023 revisions reflect an increase in removal cost estimates for offshore AROs. The 2022 revisions reflect an increase in removal cost estimates on various AROs. We are entitled to collect in rates the amounts necessary to fund our ARO with limited exceptions. All funds received for such retirements are deposited into an external trust account dedicated to funding our ARO (see Note 6 – ARO Trust). |
Regulatory Assets and Liabiliti
Regulatory Assets and Liabilities (Notes) | 12 Months Ended |
Dec. 31, 2023 | |
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 Topic 980 included on the accompanying Balance Sheet are as follows: December 31, 2023 2022 (Thousands) Current regulatory assets: Fuel cost $ 60,120 $ 72,311 Electric power cost — 24,514 ARO 16,029 16,029 Deferred cash out 6,192 6,192 Asset retirement costs - Eminence 4,857 4,857 Total current regulatory assets 87,198 123,903 Long-term regulatory assets: ARO 208,682 209,542 Grossed-up deferred taxes on equity funds used during construction 30,646 32,064 Asset retirement costs - Eminence 19,590 23,909 Slug Catcher 6,020 6,156 Deferred cash out 10,589 4,828 Other 23,572 22,294 Total long-term regulatory assets 299,099 298,793 Total regulatory assets $ 386,297 $ 422,696 Current regulatory liabilities: Deferred taxes - liability $ 30,752 $ 30,752 Postretirement benefits other than pension 7,988 15,000 Electric power cost 7,475 — Pension 1,732 10,394 Other 1,312 901 Total current regulatory liabilities 49,259 57,047 Long-term regulatory liabilities: Negative salvage 604,837 591,350 Deferred taxes - liability 283,003 314,543 Postretirement benefits other than pension 23,105 25,156 Pension 24,000 19,732 Sentinel meter station depreciation 7,129 6,971 Other 13,554 6,217 Total long-term regulatory liabilities 955,628 963,969 Total regulatory liabilities $ 1,004,887 $ 1,021,016 The significant regulatory assets and liabilities include: Fuel cost : This amount represents the value of the cumulative volumetric difference between the gas retained from our customers and the gas consumed in operations. These amounts are not included in the rate base but assets and liabilities are expected to be recovered or refunded, respectively, in subsequent annual fuel tracker filings. Electric power cost : This amount represents the value of the cumulative volumetric 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 assets and liabilities are expected to be recovered or refunded, respectively, by changing the power reimbursement rate in subsequent annual electric power tracker filings. ARO : This regulatory asset balance reflects the 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 Obligations). Deferred cash out : This amount represents the deferral of gains or losses on the purchases and sales of gas imbalances with shippers. These amounts will be recovered/refunded under terms provided for in our FERC tariff. Asset retirement costs - Eminence : This regulatory asset balance is 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. Grossed-up deferred taxes on equity funds used during construction : This regulatory asset balance is 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 assets to which they relate. 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 prescribed depreciation rate for onshore transmission facilities (see Note 1 – Summary of Significant Accounting Policies). Deferred taxes - liability : This 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. As of December 31, 2023, an additional $13 million of rate base deferred taxes was recorded due to a decrease in the effective state income tax rate. This amount will be subject to future discussions and negotiation with our customers in our next rate case. 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 – Benefit Plans). 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. Also 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 – Benefit Plans). 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. Negative salvage: Our rates include a component designed to recover certain future retirement costs for which we are not required to record an ARO. We record a regulatory liability representing the cumulative residual amount of recoveries through rates, net of expenditures associated with these retirement costs. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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 December 31, 2023, the remaining property, plant and equipment allocation was approximately $0.4 billion. Current FERC policy does not permit us to recover through rates amounts in excess of original cost. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Significant estimates and assumptions include: • Litigation-related contingencies; • Environmental remediation obligations; • Impairment assessments of long-lived assets; • Depreciation; • Asset retirement obligations; and • Measurement of regulatory assets and liabilities. These estimates are discussed further throughout these notes. |
Regulatory Accounting | Regulatory Accounting We are regulated by the Federal Energy Regulatory Commission (FERC). Accounting Standards Codification (ASC) Topic 980, “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 financial statements include the effects of the types of transactions described above that result from regulatory accounting requirements. |
Revenue Recognition | Revenue Recognition Our customers are comprised of public utilities, municipalities, natural gas marketers and producers, intrastate pipelines, direct industrial users, and electric 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 pipeline business and are not within the scope of ASC Topic 606, “Revenues from Contracts with Customers.” 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 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. At December 31, 2023 and 2022, we had no such rate refund liabilities. 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 below). 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 - Contract liabilities , respectively, in our 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 Balance Sheet for operating leases based on the present value of the future lease payments. 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 30 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 use 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 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 with limited exceptions. |
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 using the straight-line method at 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. The following table presents Total property, plant and equipment, net as presented on the Balance Sheet: Depreciation Rate December 31, 2023 2022 (Thousands) Onshore transmission facilities 2.50% - 7.13% $ 16,030,815 $ 15,379,968 Offshore transmission facilities 1.25% 681,216 639,354 Storage facilities 1.86% - 2.05% 830,071 814,882 Gathering facilities 0% - 1.00% 157,817 176,305 Construction in progress Not applicable 1,008,006 661,033 Other 1.77% - 20.00% 585,674 568,203 Property, plant and equipment 19,293,599 18,239,745 Less-Accumulated depreciation and amortization 5,963,213 5,552,377 Total property, plant and equipment, net $ 13,330,386 $ 12,687,368 We record a liability and increase the basis in the underlying asset for the present value of each expected future ARO at the time the liability is initially incurred, typically when the asset is acquired or constructed. Measurements of ARO 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 generally 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 our 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 ASC Topic 360, “Property, Plant, and Equipment,” 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 $14.3 million, $5.2 million, and $5.0 million, for 2023, 2022 and 2021, respectively. The allowance for equity funds was $62.9 million, $23.0 million, and $17.1 million, for 2023, 2022 and 2021, 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 | Accounts Receivable Accounts receivable are carried on a gross basis less an allowance for doubtful accounts. We estimate the allowance for doubtful accounts, considering current expected credit losses using a forward-looking “expected loss” model, the financial condition of our customers, and the age of past due accounts. 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 analyses, such as bankruptcy monitoring, if applicable. 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. |
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 (see Deferred Cash Out below) or through the receipt or delivery of gas in the future and are recorded in the accompanying 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, 2023 and 2022. 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 applied to any prior under recovery balance or 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. |
Materials and Supplies Inventory | Materials and Supplies Inventory All materials and supplies inventory is 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. The reserve for inventory was $4.4 million at December 31, 2023, and there was a minimal reserve at December 31, 2022. |
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 – Benefit Plans). 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 | Cash Flows from Operating Activities 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. |
Fair Value Measurements (Polici
Fair Value Measurements (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
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: 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 ARO. 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 Balance Sheet. However, both realized and unrealized gains and losses are ultimately recorded as regulatory assets or liabilities. See Note 6 – ARO Trust for more information. Long-term debt, including current portion : 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 value of the financing obligations associated with our Dalton, Atlantic Sunrise and Leidy South projects were determined using an income approach (see Note 5 – Debt and Financing Arrangements). |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Total property, plant and equipment, net | The following table presents Total property, plant and equipment, net as presented on the Balance Sheet: Depreciation Rate December 31, 2023 2022 (Thousands) Onshore transmission facilities 2.50% - 7.13% $ 16,030,815 $ 15,379,968 Offshore transmission facilities 1.25% 681,216 639,354 Storage facilities 1.86% - 2.05% 830,071 814,882 Gathering facilities 0% - 1.00% 157,817 176,305 Construction in progress Not applicable 1,008,006 661,033 Other 1.77% - 20.00% 585,674 568,203 Property, plant and equipment 19,293,599 18,239,745 Less-Accumulated depreciation and amortization 5,963,213 5,552,377 Total property, plant and equipment, net $ 13,330,386 $ 12,687,368 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Contract Liabilities | The following table presents a reconciliation of our contract liabilities: Year Ended December 31, 2023 2022 (Thousands) Balance at beginning of period $ 194,464 $ 205,030 Recognized in revenue (10,566) (10,566) Balance at end of period $ 183,898 $ 194,464 |
Remaining Performance Obligations | 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, 2023. Contract Liabilities Remaining Performance Obligations (Thousands) 2024 (one year) $ 10,568 $ 2,570,901 2025 (one year) 10,566 2,307,268 2026 (one year) 10,566 2,215,340 2027 (one year) 10,566 1,658,531 2028 (one year) 10,568 1,539,513 Thereafter 131,064 9,499,369 Total $ 183,898 $ 19,790,922 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Lease cost | Year Ended December 31, 2023 2022 2021 (Thousands) Lease Cost: Operating lease cost $ 9,042 $ 9,445 $ 9,292 Variable lease cost 7,160 6,877 4,764 Total lease cost $ 16,202 $ 16,322 $ 14,056 Cash paid for operating lease liabilities $ 9,809 $ 9,715 $ 9,554 December 31, 2023 2022 (Thousands) Other Information: Right-of-use assets $ 53,255 $ 59,235 Operating lease liabilities: Current (included in Accrued liabilities - Other on our Balance Sheet) $ 6,495 $ 6,482 Lease liability $ 56,353 $ 63,074 Weighted-average remaining lease term - operating leases (years) 13 13 Weighted-average discount rate - operating leases 4.73% 4.69% |
Lessee, Operating Lease, Liability, Maturity | As of December 31, 2023, 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) 2024 $ 9,443 2025 8,571 2026 9,200 2027 9,472 2028 9,473 Thereafter 42,893 Total future lease payments 89,052 Less amount representing interest 26,204 Total obligations under operating leases $ 62,848 |
Debt and Financing Arrangemen_2
Debt and Financing Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Long-term debt | December 31, 2023 2022 (Thousands) 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 700,000 700,000 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 500,000 500,000 Total notes 3,975,000 3,975,000 Other financing obligations 1,116,360 1,138,773 Total long-term debt, including current portion 5,298,860 5,321,273 Unamortized debt issuance costs (25,688) (28,113) Unamortized debt premium and discount, net (12,004) (12,829) Long-term debt due within one year (31,718) (28,532) Total long-term debt $ 5,229,450 $ 5,251,799 |
Maturities of long-term debt | The following table presents aggregate minimum maturities of long-term debt and other financing obligations outstanding at December 31, 2023, excluding net unamortized debt premium (discount) and debt issuance costs, for each of the next five years (in thousands): 2024 $ 31,718 2025 $ 34,675 2026 $ 1,245,411 2027 $ 41,452 2028 $ 445,325 |
ARO Trust (Tables)
ARO Trust (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
ARO Trust | Investments within the ARO Trust were as follows (in millions): December 31, 2023 December 31, 2022 Amortized Fair Amortized Fair Money Market Funds $ 25.5 $ 25.5 $ 16.4 $ 16.4 U.S. Equity Funds 52.7 119.8 52.7 96.1 International Equity Funds 31.7 39.2 31.6 35.2 Municipal Bond Funds 87.7 84.4 87.7 82.0 Total $ 197.6 $ 268.9 $ 188.4 $ 229.7 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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 significant financial assets and liabilities. The carrying values of short-term financial assets that have variable interest rates (advances to affiliate), 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, 2023: Measured on a recurring basis: ARO Trust investments $ 268.9 $ 268.9 $ 268.9 $ — $ — Additional disclosures: Long-term debt, including current portion (5,261.2) (5,438.4) — (5,438.4) — Assets (liabilities) at December 31, 2022: Measured on a recurring basis: ARO Trust investments $ 229.7 $ 229.7 $ 229.7 $ — $ — Additional disclosures: Long-term debt, including current portion (5,280.3) (5,361.7) — (5,361.7) — |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of changes in asset retirement obligation | Our overall asset retirement obligation changed as follows: Year Ended December 31, 2023 2022 (Thousands) Beginning balance $ 562,963 $ 518,387 Accretion 31,002 27,516 New obligations 8,749 15,218 Changes in estimates of existing obligations (1) 39,948 8,395 Property dispositions/obligations settled (23,381) (6,553) Ending balance $ 619,281 $ 562,963 ______________________ |
Regulatory Assets and Liabili_2
Regulatory Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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 Topic 980 included on the accompanying Balance Sheet are as follows: December 31, 2023 2022 (Thousands) Current regulatory assets: Fuel cost $ 60,120 $ 72,311 Electric power cost — 24,514 ARO 16,029 16,029 Deferred cash out 6,192 6,192 Asset retirement costs - Eminence 4,857 4,857 Total current regulatory assets 87,198 123,903 Long-term regulatory assets: ARO 208,682 209,542 Grossed-up deferred taxes on equity funds used during construction 30,646 32,064 Asset retirement costs - Eminence 19,590 23,909 Slug Catcher 6,020 6,156 Deferred cash out 10,589 4,828 Other 23,572 22,294 Total long-term regulatory assets 299,099 298,793 Total regulatory assets $ 386,297 $ 422,696 Current regulatory liabilities: Deferred taxes - liability $ 30,752 $ 30,752 Postretirement benefits other than pension 7,988 15,000 Electric power cost 7,475 — Pension 1,732 10,394 Other 1,312 901 Total current regulatory liabilities 49,259 57,047 Long-term regulatory liabilities: Negative salvage 604,837 591,350 Deferred taxes - liability 283,003 314,543 Postretirement benefits other than pension 23,105 25,156 Pension 24,000 19,732 Sentinel meter station depreciation 7,129 6,971 Other 13,554 6,217 Total long-term regulatory liabilities 955,628 963,969 Total regulatory liabilities $ 1,004,887 $ 1,021,016 |
Schedule of Regulatory Liabilities [Table Text Block] | The regulatory assets and regulatory liabilities resulting from our application of the provisions of Topic 980 included on the accompanying Balance Sheet are as follows: December 31, 2023 2022 (Thousands) Current regulatory assets: Fuel cost $ 60,120 $ 72,311 Electric power cost — 24,514 ARO 16,029 16,029 Deferred cash out 6,192 6,192 Asset retirement costs - Eminence 4,857 4,857 Total current regulatory assets 87,198 123,903 Long-term regulatory assets: ARO 208,682 209,542 Grossed-up deferred taxes on equity funds used during construction 30,646 32,064 Asset retirement costs - Eminence 19,590 23,909 Slug Catcher 6,020 6,156 Deferred cash out 10,589 4,828 Other 23,572 22,294 Total long-term regulatory assets 299,099 298,793 Total regulatory assets $ 386,297 $ 422,696 Current regulatory liabilities: Deferred taxes - liability $ 30,752 $ 30,752 Postretirement benefits other than pension 7,988 15,000 Electric power cost 7,475 — Pension 1,732 10,394 Other 1,312 901 Total current regulatory liabilities 49,259 57,047 Long-term regulatory liabilities: Negative salvage 604,837 591,350 Deferred taxes - liability 283,003 314,543 Postretirement benefits other than pension 23,105 25,156 Pension 24,000 19,732 Sentinel meter station depreciation 7,129 6,971 Other 13,554 6,217 Total long-term regulatory liabilities 955,628 963,969 Total regulatory liabilities $ 1,004,887 $ 1,021,016 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
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 | 400,000 | ||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | 19,293,599 | $ 18,239,745 | |
Less-Accumulated depreciation and amortization | 5,963,213 | 5,552,377 | |
Total property, plant and equipment, net | 13,330,386 | 12,687,368 | |
Capitalized Interest Costs, Including Allowance for Funds Used During Construction [Abstract] | |||
Allowance for funds used during construction, borrowed | 14,300 | 5,200 | $ 5,000 |
Allowance for funds used during construction, equity | 62,900 | 23,000 | $ 17,100 |
Inventory Disclosure [Abstract] | |||
Inventory Valuation Reserves | $ 4,400 | ||
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 | 30 years | ||
Onshore transmission facilities | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 16,030,815 | 15,379,968 | |
Onshore transmission facilities | Minimum [Member] | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Depreciation rates | 2.50% | ||
Onshore transmission facilities | Maximum [Member] | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Depreciation rates | 7.13% | ||
Offshore transmission facilities | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Depreciation rates | 1.25% | ||
Property, plant and equipment | $ 681,216 | 639,354 | |
Storage facilities | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 830,071 | 814,882 | |
Storage facilities | Minimum [Member] | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Depreciation rates | 1.86% | ||
Storage facilities | Maximum [Member] | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Depreciation rates | 2.05% | ||
Gathering facilities | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 157,817 | 176,305 | |
Gathering facilities | Minimum [Member] | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Depreciation rates | 0% | ||
Gathering facilities | Maximum [Member] | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Depreciation rates | 1% | ||
Construction in Progress [Member] | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 1,008,006 | 661,033 | |
Other | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 585,674 | $ 568,203 | |
Other | Minimum [Member] | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Depreciation rates | 1.77% | ||
Other | Maximum [Member] | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Depreciation rates | 20% |
Revenue Recognition Contract Li
Revenue Recognition Contract Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
contract with customer liability line items [Line Items] | ||
Contract with Customer, Liability - Beginning of Period | $ 194,464 | $ 205,030 |
Recognized in revenue | (10,566) | (10,566) |
Contract with Customer, Liability - End of Period | $ 183,898 | $ 194,464 |
Revenue Recognition Contract _2
Revenue Recognition Contract Liabilities Performance Obligations (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Contract with Customer, Liability | $ 183,898 | $ 194,464 | $ 205,030 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Contract with Customer, Liability | $ 10,568 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Performance Obligations Related To Contract Liabilities [Member] | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Contract with Customer, Liability | $ 10,566 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | Performance Obligations Related To Contract Liabilities [Member] | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Contract with Customer, Liability | $ 10,566 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | Performance Obligations Related To Contract Liabilities [Member] | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Contract with Customer, Liability | $ 10,566 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | Performance Obligations Related To Contract Liabilities [Member] | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Contract with Customer, Liability | $ 10,568 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01 | Performance Obligations Related To Contract Liabilities [Member] | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2029-01-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Contract with Customer, Liability | $ 131,064 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2029-01-01 | Performance Obligations Related To Contract Liabilities [Member] | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period |
Revenue Recognition Remaining P
Revenue Recognition Remaining Performance Obligations (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 19,790,922 |
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 | $ 2,570,901 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Remaining Performance Obligations [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
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 | $ 2,307,268 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | Remaining Performance Obligations [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
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 | $ 2,215,340 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | Remaining Performance Obligations [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 1,658,531 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | Remaining Performance Obligations [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 1,539,513 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01 | Remaining Performance Obligations [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2029-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 9,499,369 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2029-01-01 | Remaining Performance Obligations [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | |||
Operating lease cost | $ 9,042 | $ 9,445 | $ 9,292 |
Variable lease cost | 7,160 | 6,877 | 4,764 |
Total lease cost | 16,202 | 16,322 | 14,056 |
Cash paid for operating lease liabilities | 9,809 | 9,715 | $ 9,554 |
Right-of-use assets | 53,255 | 59,235 | |
Current (included in Accrued liabilities - Other on our Balance Sheet) | $ 6,495 | $ 6,482 | |
Current (included in Accrued liabilities - Other on our Balance Sheet) | Other | Other | |
Lease liability | $ 56,353 | $ 63,074 | |
Weighted-average remaining lease term - operating leases (years) | 13 years | 13 years | |
Weighted-average discount rate - operating leases | 4.73% | 4.69% | |
2024 | $ 9,443 | ||
2025 | 8,571 | ||
2026 | 9,200 | ||
2027 | 9,472 | ||
2028 | 9,473 | ||
Thereafter | 42,893 | ||
Total future lease payments | 89,052 | ||
Less amount representing interest | 26,204 | ||
Total obligations under operating leases | $ 62,848 |
Contingent Liabilities and Co_2
Contingent Liabilities and Commitments (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Environmental assessment and remediation | ||
Site Contingency [Line Items] | ||
Accrued environmental assessment and remediation costs, total | $ 10.5 | $ 11.8 |
Environmental Loss Contingency, Statement of Financial Position [Extensible Enumeration] | Other, Other Liabilities, Noncurrent | Other, Other Liabilities, Noncurrent |
Accrued environmental assessment and remediation costs, current | $ 0.6 | $ 1.4 |
Environmental Loss Contingency, Current, Statement of Financial Position [Extensible Enumeration] | Other | Other |
Accrued environmental assessment and remediation costs, noncurrent | $ 9.9 | $ 10.4 |
Environmental Loss Contingency, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent |
Potentially responsible party at various Superfund and state waste disposal sites | Maximum [Member] | ||
Site Contingency [Line Items] | ||
Environmental assessment and remediation costs, best estimate | $ 0.5 |
Debt and Financing Arrangemen_3
Debt and Financing Arrangements Debt Disclosure (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||
Total long-term debt, including current portion | $ 5,298,860,000 | $ 5,321,273,000 | |
Other financing obligations | 1,116,360,000 | 1,138,773,000 | |
Proceeds from other financing obligations | 6,544,000 | 8,506,000 | $ 3,297,000 |
Unamortized debt issuance costs | (25,688,000) | (28,113,000) | |
Unamortized debt premium and discount, net | (12,004,000) | (12,829,000) | |
Long-term debt due within one year | 31,718,000 | 28,532,000 | |
Total long-term debt | 5,229,450,000 | 5,251,799,000 | |
Long-term Debt, Fiscal Year Maturity [Abstract] | |||
2024 | 31,718,000 | ||
2025 | 34,675,000 | ||
2026 | 1,245,411,000 | ||
2027 | 41,452,000 | ||
2028 | $ 445,325,000 | ||
7.08% due 2026 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt interest rate | 7.08% | ||
7.25% due 2026 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt interest rate | 7.25% | ||
7.85% due 2026 | |||
Debt Instrument [Line Items] | |||
Long-term debt interest rate | 7.85% | ||
4.0% due 2028 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt interest rate | 4% | ||
3.25% due 2030 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt interest rate | 3.25% | ||
5.4% due 2041 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt interest rate | 5.40% | ||
4.45% due 2042 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt interest rate | 4.45% | ||
4.6 % due 2048 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt interest rate | 4.60% | ||
3.95 due 2050 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt interest rate | 3.95% | ||
Dalton Expansion Project [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt face amount | $ 246,800,000 | 249,400,000 | |
Long-term debt interest rate | 9% | ||
Other Long-term Debt, Current | $ 3,000,000 | 2,800,000 | |
Atlantic Sunrise Project [Member] | |||
Debt Instrument [Line Items] | |||
Other financing obligations | 762,800,000 | 784,600,000 | |
Proceeds from other financing obligations | $ 6,100,000 | 2,200,000 | |
Long-term debt interest rate | 9% | ||
Other Long-term Debt, Current | $ 27,400,000 | 24,600,000 | |
Leidy South Project [Member] | |||
Debt Instrument [Line Items] | |||
Other financing obligations | 75,000,000 | 76,200,000 | |
Proceeds from other financing obligations | $ 6,000,000 | ||
Long-term debt interest rate | 13% | ||
Other Long-term Debt, Current | $ 1,300,000 | 1,100,000 | |
Property pledged as collateral | |||
Debt Instrument [Line Items] | |||
Total long-term debt | 0 | ||
Debentures | |||
Debt Instrument [Line Items] | |||
Total long-term debt, including current portion | 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 | |
Debentures | 7.25% due 2026 [Member] | |||
Debt Instrument [Line Items] | |||
Total long-term debt, including current portion | 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 | |
Notes | 7.85% due 2026 | |||
Debt Instrument [Line Items] | |||
Total long-term debt, including current portion | 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 | |
Notes | 3.25% due 2030 [Member] | |||
Debt Instrument [Line Items] | |||
Total long-term debt, including current portion | 700,000,000 | 700,000,000 | |
Notes | 5.4% due 2041 [Member] | |||
Debt Instrument [Line Items] | |||
Total long-term debt, including current portion | 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 | |
Notes | 4.6 % due 2048 [Member] | |||
Debt Instrument [Line Items] | |||
Total long-term debt, including current portion | 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 |
Debt and Financing Arrangemen_4
Debt and Financing Arrangements Line of Credit Facility (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Oct. 08, 2021 | Sep. 30, 2021 |
Line of Credit [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of credit facility, amount outstanding | $ 0 | ||
Line of credit facility, maximum borrowing capacity | $ 500 | ||
Letters of credit outstanding, amount | 0 | ||
Maximum Ratio of Debt to Capitalization | 65% | ||
Williams Companies Inc [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 3,750 | ||
Commercial paper, amount outstanding | 725 | ||
Williams Companies Inc [Member] | Commercial paper [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 3,500 | ||
Williams Companies Inc [Member] | Line of Credit [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 4,500 | ||
Additional amount by which credit facility can be increased | 500 | ||
Williams Companies Inc [Member] | Letter of Credit [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of credit facility, maximum borrowing capacity | 500 | ||
Williams Companies Inc [Member] | Swing Line Loan [Member] | |||
Line of Credit Facility [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 200 |
ARO Trust (Details)
ARO Trust (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Debt and Equity Securities, Cost | $ 197.6 | $ 188.4 |
Debt and Equity Securities, Fair Value | 268.9 | 229.7 |
External ARO trust [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Annual funding obligation | 16 | |
Money Market Funds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt and Equity Securities, Cost | 25.5 | 16.4 |
Debt and Equity Securities, Fair Value | 25.5 | 16.4 |
U.S. Equity Funds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt and Equity Securities, Cost | 52.7 | 52.7 |
Debt and Equity Securities, Fair Value | 119.8 | 96.1 |
International Equity Funds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt and Equity Securities, Cost | 31.7 | 31.6 |
Debt and Equity Securities, Fair Value | 39.2 | 35.2 |
Municipal Bond Funds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt and Equity Securities, Cost | 87.7 | 87.7 |
Debt and Equity Securities, Fair Value | $ 84.4 | $ 82 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
ARO Trust investments | $ 268.9 | $ 229.7 |
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 | (5,438.4) | (5,361.7) |
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 | (5,261.2) | (5,280.3) |
Fair Value | ||
Additional Fair Value Elements [Abstract] | ||
Long-term debt. including current portion | (5,438.4) | (5,361.7) |
Fair Value, Recurring | 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 | 268.9 | 229.7 |
Fair Value, Recurring | Significant Other Oberservable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
ARO Trust investments | 0 | 0 |
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
ARO Trust investments | 0 | 0 |
Fair Value, Recurring | Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
ARO Trust investments | 268.9 | 229.7 |
Fair Value, Recurring | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
ARO Trust investments | $ 268.9 | $ 229.7 |
Benefit Plans (Details)
Benefit Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Regulatory liabilities | $ 1,004,887 | $ 1,021,016 | |
Defined contribution plan, cost recognized | 11,800 | 11,100 | $ 11,400 |
Salary and Wage, Excluding Cost of Good and Service Sold [Abstract] | |||
Allocated share-based compensation expense | 5,700 | 6,000 | 5,900 |
Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension cost | 1,600 | 3,700 | 4,100 |
Pension - unamortized liability | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Regulatory liability, deferred for future rate treatment | $ 25,700 | 30,100 | |
Regulatory Liability, Amortization Period | 5 years | ||
Other Postretirement Benefits Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Other postretirement benefit (income) expense | $ 5,900 | 4,600 | $ 4,700 |
Regulatory liabilities | $ 31,100 | $ 40,200 | |
Regulatory Liability, Amortization Period | 5 years |
Transactions with Major Custo_2
Transactions with Major Customers and Affiliates - Major Customers (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue, Major Customer [Line Items] | |||
Revenues | $ 2,866,196 | $ 2,909,135 | $ 2,654,800 |
Dominion Energy, Inc. | |||
Revenue, Major Customer [Line Items] | |||
Revenues | $ 287,000 | $ 293,400 | $ 297,700 |
Dominion Energy, Inc. | Customer Concentration Risk [Member] | Revenue Benchmark [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of revenue | 10% | 10% | 11% |
Transactions with Major Custo_3
Transactions with Major Customers and Affiliates - Related Party (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) employee | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Related Party Transaction [Line Items] | ||||
Related party transaction, rate | 5.20% | |||
Interest Income, Related Party | $ 86,932 | $ 35,843 | $ 4,714 | |
Revenues | $ 2,866,196 | 2,909,135 | 2,654,800 | |
Entity number of employees | employee | 0 | |||
Credit to expenses from affiliates | $ 13,800 | 9,800 | 7,300 | |
Cash distributions to parent | 1,220,000 | 837,548 | 343,731 | |
Affiliated Entity [Member] | ||||
Related Party Transaction [Line Items] | ||||
Advances to affiliate | 1,400,000 | 1,800,000 | ||
Interest Income, Related Party | 80,500 | 31,000 | 100 | |
Revenues | 56,300 | 89,400 | 37,400 | |
Cost of natural gas sales | 7,200 | 17,800 | 7,900 | |
Expenses, related party | $ 324,100 | $ 345,000 | $ 329,700 | |
Affiliated Entity [Member] | Subsequent Event [Member] | ||||
Related Party Transaction [Line Items] | ||||
Cash distributions to parent | $ 320,000 |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Beginning balance | $ 562,963 | $ 518,387 |
Accretion | 31,002 | 27,516 |
New obligations | 8,749 | 15,218 |
Changes in estimates of existing obligations (1) | 39,948 | 8,395 |
Property dispositions/obligations settled | (23,381) | (6,553) |
Ending balance | $ 619,281 | $ 562,963 |
Regulatory Assets and Liabili_3
Regulatory Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Regulatory Assets [Table] | ||
Regulatory Assets, Current | $ 87,198 | $ 123,903 |
Regulatory Assets, Noncurrent | 299,099 | 298,793 |
Regulatory assets | 386,297 | 422,696 |
Regulatory Liability [Axis] | ||
Regulatory liabilities | 1,004,887 | 1,021,016 |
Regulatory Liability, Current | 49,259 | 57,047 |
Regulatory Liability, Noncurrent | 955,628 | 963,969 |
Deferred taxes - liability | ||
Regulatory Liability [Axis] | ||
Regulatory liabilities | 13,000 | |
Regulatory Liability, Current | 30,752 | 30,752 |
Regulatory Liability, Noncurrent | 283,003 | 314,543 |
Postretirement benefits other than pension | ||
Regulatory Liability [Axis] | ||
Regulatory Liability, Current | 7,988 | 15,000 |
Regulatory Liability, Noncurrent | 23,105 | 25,156 |
Electric power cost | ||
Regulatory Liability [Axis] | ||
Regulatory Liability, Current | 7,475 | 0 |
Pension | ||
Regulatory Liability [Axis] | ||
Regulatory Liability, Current | 1,732 | 10,394 |
Regulatory Liability, Noncurrent | 24,000 | 19,732 |
Other | ||
Regulatory Liability [Axis] | ||
Regulatory Liability, Current | 1,312 | 901 |
Regulatory Liability, Noncurrent | 13,554 | 6,217 |
Negative salvage | ||
Regulatory Liability [Axis] | ||
Regulatory Liability, Noncurrent | 604,837 | 591,350 |
Sentinel meter station depreciation | ||
Regulatory Liability [Axis] | ||
Regulatory Liability, Noncurrent | 7,129 | 6,971 |
Fuel Cost | ||
Schedule of Regulatory Assets [Table] | ||
Regulatory Assets, Current | 60,120 | 72,311 |
Electric power cost | ||
Schedule of Regulatory Assets [Table] | ||
Regulatory Assets, Current | 0 | 24,514 |
ARO | ||
Schedule of Regulatory Assets [Table] | ||
Regulatory Assets, Current | 16,029 | 16,029 |
Regulatory Assets, Noncurrent | 208,682 | 209,542 |
Deferred cash out | ||
Schedule of Regulatory Assets [Table] | ||
Regulatory Assets, Current | 6,192 | 6,192 |
Regulatory Assets, Noncurrent | 10,589 | 4,828 |
Asset retirement costs - Eminence | ||
Schedule of Regulatory Assets [Table] | ||
Regulatory Assets, Current | 4,857 | 4,857 |
Regulatory Assets, Noncurrent | 19,590 | 23,909 |
Grossed-up deferred taxes on equity funds used during construction | ||
Schedule of Regulatory Assets [Table] | ||
Regulatory Assets, Noncurrent | 30,646 | 32,064 |
Slug catcher | ||
Schedule of Regulatory Assets [Table] | ||
Regulatory Assets, Noncurrent | 6,020 | 6,156 |
Other | ||
Schedule of Regulatory Assets [Table] | ||
Regulatory Assets, Noncurrent | $ 23,572 | $ 22,294 |