Rates and Other Regulatory Activities Summary of Effects of Tax Reform Impact on Regulated Businesses (Tables)

12 Months Ended

Dec. 31, 2021

Summary of Effects of Federal Tax Reform on Regulated Businesses [Abstract]

Summary of Effects of Federal Tax Reform on Regulated Businesses [Table Text Block]

	Amount (in thousands)
Operation and Regulatory Jurisdiction	December 31, 2021	December 31, 2020	Status
Eastern Shore (FERC)	$34,190	$34,190	Will be addressed in Eastern Shore's next rate case filing.
Delaware Division (Delaware PSC)	$12,591	$12,728	PSC approved amortization of ADIT in January 2019.
Maryland Division (Maryland PSC)	$3,840	$3,970	PSC approved amortization of ADIT in May 2018.
Sandpiper Energy (Maryland PSC)	$3,656	$3,713	PSC approved amortization of ADIT in May 2018.
Chesapeake Florida Gas Division/Central Florida Gas (Florida PSC)	$8,032	$8,184	PSC issued order authorizing amortization and retention of net ADIT liability by the Company in February 2019.
FPU Natural Gas (excludes Fort Meade and Indiantown) (Florida PSC)	$19,189	$19,257	Same treatment on a net basis as Chesapeake Florida Gas Division (above).
FPU Fort Meade and Indiantown Divisions	$271	$309	Same treatment on a net basis as Chesapeake Florida Gas Division (above).
FPU Electric (Florida PSC)	$5,237	$6,694	In January 2019, PSC issued order approving amortization of ADIT through purchased power cost recovery, storm reserve and rates.
Elkton Gas (Maryland PSC)	$1,091	$1,124	PSC approved amortization of ADIT in March 2018.

Schedule of Regulatory Assets [Table Text Block]

At December 31, 2021 and 2020, our regulated utility operations recorded the following regulatory assets and liabilities included in our consolidated balance sheets. These assets and liabilities will be recognized as revenues and expenses in future periods as they are reflected in customers’ rates.

	As of December 31,
	2021		2020
(in thousands)
Regulatory Assets
Under-recovered purchased fuel and conservation cost recovery (1)	$	9,199	$	2,078
Under-recovered GRIP revenue (2)	2,101		278
Deferred postretirement benefits (3)	16,749		17,716
Deferred conversion and development costs (1)	23,383		23,054
Environmental regulatory assets and expenditures (4)	1,258		1,743
Acquisition adjustment (5)	27,182		28,756
Loss on reacquired debt (6)	721		795
Deferred costs associated with COVID-19 (7)	2,289		1,925
Deferred storm costs (8)	36,004		44,320
Other	5,081		3,927
Total Regulatory Assets	$	123,967	$	124,592
Regulatory Liabilities
Self-insurance (9)	$	563	$	533
Over-recovered purchased fuel and conservation cost recovery (1)	1,073		4,422
Over-recovered GRIP revenue (2)	11		338
Storm reserve (9)	2,829		2,673
Accrued asset removal cost (10)	47,887		45,315
Deferred income taxes due to rate change (11)	88,804		90,845
Interest related to storm recovery (8)	2,146		3,353
Other	1,487		1,541
Total Regulatory Liabilities	$	144,800	$	149,020

(1) We are allowed to recover the asset or are required to pay the liability in rates. We do not earn an overall rate of return on these assets.

(2) The Florida PSC allowed us to recover through a surcharge, capital and other program-related-costs, inclusive of an appropriate return on investment, associated with accelerating the replacement of qualifying distribution mains and services (defined as any material other than coated steel or plastic) in FPU’s natural gas distribution, Fort Meade division and Chesapeake Utilities’ Central Florida Gas division. We are allowed to recover the asset or are required to pay the liability in rates related to GRIP.

(3) The Florida PSC allowed FPU to treat as a regulatory asset the portion of the unrecognized costs pursuant to ASC Topic 715, Compensation - Retirement Benefits, related to its regulated operations. This balance also includes the portion of pension settlement expense associated with the termination of the Chesapeake Pension Plan pursuant to an order from the FERC and the respective PSCs that allowed us to defer Eastern Shore, Delaware and Maryland Divisions' portion. See Note 17, Employee Benefit Plans, for additional information.

(4) All of our environmental expenditures incurred to date and our current estimate of future environmental expenditures have been approved by various PSCs for recovery. See Note 20, Environmental Commitments and Contingencies, for additional information on our environmental contingencies.

(5) We are allowed to include the premiums paid in various natural gas utility acquisitions in Florida in our rate bases and recover them over a specific time period pursuant to the Florida PSC approvals. We paid $34.2 million of the premium in 2009, including a gross up for income tax, because it is not tax deductible, and $0.7 million of the premium paid by FPU in 2010.

(6) Gains and losses resulting from the reacquisition of long-term debt are amortized over future periods as adjustments to interest expense in accordance with established regulatory practice.

(7) We deferred as regulatory assets the net incremental expense impact associated with the net expense impact of COVID-19 as authorized by the stated PSCs.

(8) The Florida PSC authorized us to recover regulatory assets (including interest) associated with the recovery of Hurricanes Michael and Dorian storm costs which will be amortized between 6 and 10 years. Recovery of these costs includes a component of an overall return on capital additions and regulatory assets.

(9) We have storm reserves in our Florida regulated energy operations and self-insurance for our regulated energy operations that allow us to collect through rates amounts to be used against general claims, storm restoration costs and other losses as they are incurred.

(10) See Note 1, Summary of Significant Accounting Policies, for additional information on our asset removal cost policies.

(11) We recorded a regulatory liability for our regulated businesses related to the revaluation of accumulated deferred tax assets/liabilities as a result of the TCJA. The liability will be amortized over a period between 5 to 80 years based on the remaining life of the associated property. Based upon the regulatory proceedings, we will pass back the respective portion of the excess accumulated deferred taxes to rate payers. See Note 12, Income Taxes, for additional information.