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Rates and Other Regulatory Activities Summary of Effects of Tax Reform Impact on Regulated Businesses (Tables)
 12 Months Ended
Dec. 31, 2023
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 JurisdictionDecember 31, 2023December 31, 2022Status
Eastern Shore (FERC)$34,190$34,190Will be addressed in Eastern Shore's next rate case filing.
Chesapeake Delaware natural gas division (Delaware PSC)$12,038$12,230PSC approved amortization of ADIT in January 2019.
Chesapeake Maryland natural gas division (Maryland PSC)$3,585$3,703PSC approved amortization of ADIT in May 2018.
Sandpiper Energy (Maryland PSC)$3,487$3,597PSC approved amortization of ADIT in May 2018.
Florida Natural Gas distribution (Florida PSC) (1)
$26,757$27,179PSC issued order authorizing amortization and retention of net ADIT liability by the Company in February 2019.
FPU electric division (Florida PSC)$4,760$4,993In January 2019, PSC issued order approving amortization of ADIT through purchased power cost recovery, storm reserve and rates.
Elkton Gas (Maryland PSC)$1,027$1,059PSC approved amortization of ADIT in March 2018.
Schedule of Regulatory Assets [Table Text Block]
At December 31, 2023 and 2022, our regulated utility operations recorded the following regulatory assets and liabilities included in our consolidated balance sheets, including amounts attributable to FCG. 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,
20232022
(in thousands)  
Regulatory Assets
Under-recovered purchased fuel, gas and conservation cost recovery (1) (2)
$13,696 $43,583 
Under-recovered GRIP revenue (3)
1,777 1,705 
Deferred postretirement benefits (4)
10,802 13,927 
Deferred conversion and development costs (1)
21,466 23,653 
Acquisition adjustment (5)
31,857 25,609 
Deferred costs associated with COVID-19 (6)
190 1,233 
Deferred storm costs (7)
19,370 27,687 
Deferred rate case expenses - current 1,171 — 
Other15,573 12,256 
Total Regulatory Assets$115,902 $149,653 
Regulatory Liabilities
Self-insurance (8)
$521 $339 
Over-recovered purchased fuel and conservation cost recovery (1)
12,340 3,827 
Over-recovered GRIP revenue (3)
501 — 
Storm reserve (8)
1,900 2,845 
Accrued asset removal cost (9)
86,534 50,261 
Deferred income taxes due to rate change (10)
105,055 87,690 
Interest related to storm recovery (7)
536 1,207 
Other1,611 1,851 
Total Regulatory Liabilities$208,998 $148,020 
(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) At December 31, 2022, includes $21.2 million being recovered over a three year period primarily concentrated in our electric division. Per Florida PSC approval, our electric division was allowed to recover these amounts over an extended period of time in an effort to reduce the impact of increased commodity prices to our customers. Recovery of these costs began in January 2023.
(3) 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’ CFG division. We are allowed to recover the asset or are required to pay the liability in rates related to GRIP.
(4) 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 16, Employee Benefit Plans, for additional information.
(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. For additional information, see Florida Natural Gas Rate Case discussion above.
(6) 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.
(7) 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.
(8) 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.
(9) See Note 2, Summary of Significant Accounting Policies, for additional information on our asset removal cost policies.
(10) 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 11, Income Taxes, for additional information.