XML 27 R8.htm IDEA: XBRL DOCUMENT v2.4.0.6
Summary of Significant Accounting Policies
 6 Months Ended
Jun. 30, 2012
Disclosure Summary Of Significant Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Text Block

2.       Significant Accounting Policies Update

 

Our significant accounting policies are described in Note 2 of the 2011 Form 10-K. There were no material changes to those accounting policies during the six months ended June 30, 2012. The following are current updates to certain critical accounting policy estimates, subsequent events of the Company, and accounting standards in general.

 

Regulatory Accounting

In applying regulatory accounting principles in accordance with generally accepted accounting principles in the United States of America (U.S. GAAP), we capitalize or defer certain costs and revenues as regulatory assets and liabilities. At June 30, 2012 and 2011 and at December 31, 2011, the amounts deferred as regulatory assets and liabilities were as follows:

  Regulatory Assets         
     June 30,  June 30,  December 31,
Thousands  2012  2011  2011
Current:         
 Unrealized loss on derivatives(1) $ 29,407 $ 25,986 $ 57,317
 Pension and other postretirement benefit liabilities(2)   15,491   10,988   15,491
 Other(3)   20,399   22,792   21,865
Total current $ 65,297 $ 59,766 $ 94,673
Non-current:         
 Unrealized loss on derivatives(1) $ 2,130 $ 9,202 $ 6,536
 Pension balancing(2)   10,766   2,659   6,008
 Income tax asset   63,452   70,241   65,264
 Pension and other postretirement benefit liabilities(2)   162,767   112,743   170,512
 Environmental costs(4)   117,905   120,285   105,670
 Other(3)   9,961   10,951   17,402
Total non-current $ 366,981 $ 326,081 $ 371,392

  Regulatory Liabilities         
     June 30,  June 30,  December 31,
Thousands  2012  2011  2011
Current:         
 Gas costs $ 12,980 $ 17,538 $ 17,994
 Unrealized gain on derivatives(1)   2,142   4,433   2,853
 Other(3)   5,626   3,813   10,199
Total current $ 20,748 $ 25,784 $ 31,046
Non-current:         
 Gas costs $ 1,504 $ 3,023 $ 8,420
 Unrealized gain on derivatives(1)   1,170   1,042   -
 Accrued asset removal costs   274,756   259,593   267,355
 Other(3)   2,865   2,045   2,607
Total non-current $ 280,295 $ 265,703 $ 278,382

  • Unrealized gains or losses on derivatives are non-cash items and therefore do not earn a rate of return or a carrying charge.  These amounts are recoverable through utility rates as part of the annual Purchased Gas Adjustment mechanism when realized at settlement.
  • Certain pension costs of the utility are approved for regulatory deferral, including amounts recorded to the pension balancing account, to mitigate the effects of higher and lower pension expenses.  Pension costs that are deferred include an interest component when recognized in net periodic benefit costs or earn a rate of return or carrying charge (see Note 8).
  • Other primarily consists of deferrals and amortizations under other approved regulatory mechanisms.  The accounts being amortized typically earn a rate of return or carrying charge.
  • Environmental costs are related to those sites that are approved for regulatory deferral.  In Oregon we earn a rate of return on amounts paid, whereas amounts accrued but not yet paid do not earn a rate of return or a carrying charge until expended. Environmental costs related to Washington were deferred beginning in 2011, with cost recovery and a carrying charge to be determined in a future proceeding.

 

Subsequent Events

 

See Note 14 for information regarding the private placement bond purchase agreement entered into on July 12, 2012 and Note 7 for more detail on our debt.

 

New Accounting Standards

 

Recent Accounting Pronouncements

 

Balance Sheet Offsetting. In December 2011, the Financial Accounting Standards Board (FASB) issued authoritative guidance regarding the offsetting of assets and liabilities on the balance sheet. The standard is intended to provide more comparable guidance between the U.S. GAAP and international accounting standards by requiring entities to disclose both gross and net amounts for assets and liabilities offset on the balance sheet as well as other disclosures concerning their enforceable master netting arrangements. This guidance is effective for annual reporting periods beginning after January 1, 2013, and we are currently assessing the impact on our financial statement disclosures.