Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2017

Amounts deferred as regulatory assets and liabilities were as follows:



	Regulatory Assets
	June 30,				December 31,
In thousands	2017		2016		2016
Current:
Unrealized loss on derivatives⁽¹⁾	$	4,625	$	3,439	$	1,315
Gas costs	859		9,571		6,830
Environmental costs⁽²⁾	6,724		9,610		9,989
Decoupling⁽³⁾	12,136		14,170		13,067
Other⁽⁴⁾	13,160		12,214		11,161
Total current	$	37,504	$	49,004	$	42,362
Non-current:
Unrealized loss on derivatives⁽¹⁾	$	3,466	$	474	$	913
Pension balancing⁽⁵⁾	55,358		48,761		50,863
Income taxes	36,591		40,106		38,670
Pension and other postretirement benefit liabilities	176,136		177,596		183,035
Environmental costs⁽²⁾	64,008		65,983		63,970
Gas costs	87		1,487		89
Decoupling⁽³⁾	1,993		1,776		5,860
Other⁽⁴⁾	10,645		8,786		14,130
Total non-current	$	348,284	$	344,969	$	357,530


⁽¹⁾	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 (PGA) mechanism when realized at settlement.

⁽²⁾

Environmental costs relate to specific sites approved for regulatory deferral by the OPUC and WUTC. In Oregon, we earn a carrying charge on cash amounts paid, whereas amounts accrued but not yet paid do not earn a carrying charge until expended. We also accrue a carrying charge on insurance proceeds for amounts owed to customers. In Washington, recovery of deferred amounts will be determined in a future proceeding. Current environmental costs represent remediation costs management expects to collect from Oregon customers in the next 12 months. Amounts included in this estimate are still subject to a prudence and earnings test review by the OPUC and do not include the $5 million tariff rider. The amounts allocable to Oregon are recoverable through utility rates, subject to the aforementioned earnings test. See Note 13.


⁽³⁾	This deferral represents the margin adjustment resulting from differences between actual and expected volumes.


⁽⁴⁾	These balances primarily consist of deferrals and amortizations under approved regulatory mechanisms. The accounts being amortized typically earn a rate of return or carrying charge.

⁽⁵⁾

The deferral of certain pension expenses above or below the amount set in rates was approved by the OPUC, with recovery of these deferred amounts through the implementation of a balancing account, which includes the expectation of lower net periodic benefit costs in future years. Deferred pension expense balances include accrued interest at the utility’s authorized rate of return, with the equity portion of interest income recognized when amounts are collected in rates.


⁽⁶⁾	Estimated costs of removal on certain regulated properties are collected through rates.

Schedule of Regulatory Liabilities



	Regulatory Liabilities
	June 30,				December 31,
In thousands	2017		2016		2016
Current:
Gas costs	$	15,708	$	12,501	$	8,054
Unrealized gain on derivatives⁽¹⁾	1,459		7,428		16,624
Other⁽⁴⁾	10,874		7,371		15,612
Total current	$	28,041	$	27,300	$	40,290
Non-current:
Gas costs	$	2,719	$	1,622	$	1,021
Unrealized gain on derivatives⁽¹⁾	162		3,541		3,265
Accrued asset removal costs⁽⁶⁾	350,828		332,627		341,107
Other⁽⁴⁾	5,496		3,469		3,926
Total non-current	$	359,205	$	341,259	$	349,319


⁽¹⁾	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 (PGA) mechanism when realized at settlement.

⁽²⁾


⁽³⁾	This deferral represents the margin adjustment resulting from differences between actual and expected volumes.


⁽⁴⁾	These balances primarily consist of deferrals and amortizations under approved regulatory mechanisms. The accounts being amortized typically earn a rate of return or carrying charge.

⁽⁵⁾


⁽⁶⁾	Estimated costs of removal on certain regulated properties are collected through rates.