SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

9 Months Ended

Sep. 30, 2018

Components of Gas and Electric Operating Revenue

In the following tables, revenue is classified by the types of goods/services rendered and market/customer type. The lower revenues reported in the three and nine months ended 2018 to account for the reduction in the corporate income tax rate under the Tax Cuts and Jobs Act of 2017 (TCJA) are shown separately in the tables below for informational purposes.


	Three Months Ended September 30, 2018
Gas and Electric Operating Revenues ($ millions):	Gas			Electric			Total
Billed and Unbilled Revenue:
Residential	$	6.6		$	33.6		$	40.2
C&I		11.9			25.3			37.2
Other		1.5			2.6			4.1
Revenue Reductions – TCJA		(0.4	)		(0.6	)		(1.0	)

Total Billed and Unbilled Revenue		19.6			60.9			80.5
Rate Adjustment Mechanism Revenue		6.1			0.5			6.6

Total Gas and Electric Operating Revenues	$	25.7		$	61.4		$	87.1


	Three Months Ended September 30, 2017
Gas and Electric Operating Revenues ($ millions):	Gas			Electric			Total
Billed and Unbilled Revenue:
Residential	$	6.8		$	29.9		$	36.7
C&I		11.5			24.3			35.8
Other		1.5			1.3			2.8

Total Billed and Unbilled Revenue		19.8			55.5			75.3
Rate Adjustment Mechanism Revenue		5.3			2.0			7.3

Total Gas and Electric Operating Revenues	$	25.1		$	57.5		$	82.6


	Nine Months Ended September 30, 2018
Gas and Electric Operating Revenues ($ millions):	Gas			Electric			Total
Billed and Unbilled Revenue:
Residential	$	58.3		$	95.6		$	153.9
C&I		84.7			74.1			158.8
Other		11.0			8.6			19.6
Revenue Reductions – TCJA		(2.9	)		(2.1	)		(5.0	)

Total Billed and Unbilled Revenue		151.1			176.2			327.3
Rate Adjustment Mechanism Revenue		(3.7	)		(8.6	)		(12.3	)

Total Gas and Electric Operating Revenues	$	147.4		$	167.6		$	315.0


	Nine Months Ended September 30, 2017
Gas and Electric Operating Revenues ($ millions):	Gas			Electric		Total
Billed and Unbilled Revenue:
Residential	$	52.7		$	80.9	$	133.6
C&I		73.7			65.0		138.7
Other		9.0			4.3		13.3

Total Billed and Unbilled Revenue		135.4			150.2		285.6
Rate Adjustment Mechanism Revenue		(3.5	)		4.2		0.7

Total Gas and Electric Operating Revenues	$	131.9		$	154.4	$	286.3

Schedule of Other Operating Revenues and Operating Expenses

If ASU 2014-09 had been in effect for the three and nine months ended September 30, 2017, the result would have been corresponding reductions of $0.3 million and $0.8 million, respectively, in both “Other” in the “Operating Revenues” section of the Consolidated Statements of Earnings and “Operation and Maintenance” in the “Operating Expenses” section of the Company’s Consolidated Statements of Earnings as shown in the tables below.


	Three Months Ended September 30,
	As Reported		If ASU 2014-09 Had Been in Effect
Other Operating Revenues ($ millions):	2018		2017
Usource Contract Revenue	$	1.4	$	1.4
Less: Revenue Sharing Payments		0.3		0.3

Total Other Operating Revenues	$	1.1	$	1.1


	Three Months Ended September 30,
	As Reported		If ASU 2014-09 Had Been in Effect
Operation and Maintenance Expense ($ millions):	2018		2017
Operation and Maintenance Expense	$	16.4	$	16.6


	Nine Months Ended September 30,
	As Reported		If ASU 2014-09 Had Been in Effect
Other Operating Revenues ($ millions):	2018		2017
Usource Contract Revenue	$	4.3	$	4.5
Less: Revenue Sharing Payments		0.8		0.8

Total Other Operating Revenues	$	3.5	$	3.7


	Nine Months Ended September 30,
	As Reported		If ASU 2014-09 Had Been in Effect
Operation and Maintenance Expense ($ millions):	2018		2017
Operation and Maintenance Expense	$	51.5	$	48.6

Allowance for Doubtful Accounts Included in Accounts Receivable Net

The Allowance for Doubtful Accounts as of September 30, 2018, September 30, 2017 and December 31, 2017, which is included in Accounts Receivable, net on the accompanying unaudited consolidated balance sheets, was as follows:

($ millions)

September 30,

December 31,

2018

2017

Allowance for Doubtful Accounts

1.2

1.5

1.6

Components of Accrued Revenue

The following table shows the components of Accrued Revenue as of September 30, 2018, September 30, 2018 and December 31, 2017.


	September 30,				December 31,
Accrued Revenue ($ millions)	2018		2017		2017
Regulatory Assets – Current	$	26.4	$	31.3	$	39.5
Unbilled Revenues		9.6		7.9		13.8

Total Accrued Revenue	$	36.0	$	39.2	$	53.3

Components of Exchange Gas Receivable

The following table shows the components of Exchange Gas Receivable as of September 30, 2018, September 30, 2017 and December 31, 2017.


	September 30,				December 31,
Exchange Gas Receivable ($ millions)	2018		2017		2017
Northern Utilities	$	9.5	$	8.9	$	5.4
Fitchburg		0.6		0.6		0.4

Total Exchange Gas Receivable	$	10.1	$	9.5	$	5.8

Components of Gas Inventory

The following table shows the components of gas inventory as of September 30, 2018, September 30, 2017 and December 31, 2017 which are recorded on the Consolidated Balance Sheets in Prepayments and Other.


	September 30,				December 31,
Gas Inventory ($ millions)	2018		2017		2017
Natural Gas	$	0.4	$	0.4	$	0.4
Propane		0.4		0.2		0.1
Liquefied Natural Gas & Other		0.1		0.1		0.1

Total Gas Inventory	$	0.9	$	0.7	$	0.6

Regulatory Assets


	September 30,				December 31,
Regulatory Assets consist of the following ($ millions)	2018		2017		2017
Retirement Benefits	$	88.0	$	76.2	$	84.5
Energy Supply & Other Rate Adjustment Mechanisms		24.8		28.2		36.0
Deferred Storm Charges		6.3		6.8		7.2
Environmental		8.9		9.9		9.5
Income Taxes		5.9		6.7		6.5
Other		4.1		5.5		5.4

Total Regulatory Assets		138.0		133.3		149.1
Less: Current Portion of Regulatory Assets⁽¹⁾		26.4		31.3		39.5

Regulatory Assets – noncurrent	$	111.6	$	102.0	$	109.6

⁽¹⁾

Reflects amounts included in Accrued Revenue, discussed above, on the Company’s Consolidated Balance Sheets.

Regulatory Liabilities


	September 30,				December 31,
Regulatory Liabilities consist of the following ($ millions)	2018		2017		2017
Rate Adjustment Mechanisms	$	12.2	$	11.6	$	6.9
Gas Pipeline Refund (Note 6)		—		3.4		2.3
Income Taxes (Note 8)		47.9		—		48.9

Total Regulatory Liabilities		60.1		15.0		58.1
Less: Current Portion of Regulatory Liabilities		12.2		15.0		9.2

Regulatory Liabilities – noncurrent	$	47.9	$	—	$	48.9

Fair Value of Marketable Securities

Changes in the fair value of these investments are recorded in Other Expense, net.


	September 30,				December 31,
Fair Value of Marketable Securities ($ millions)	2018		2017		2017
Equity Funds	$	3.0	$	1.9	$	2.1
Fixed Income Funds		2.3		1.5		1.5

Total Marketable Securities	$	5.3	$	3.4	$	3.6

Components of Energy Supply Obligations

The following discussion and table summarize the nature and amounts of the items recorded as current and noncurrent Energy Supply Obligations on the Company’s Consolidated Balance Sheets. The noncurrent portion of Energy Supply Obligations is recorded in Other Noncurrent Liabilities on the Company’s Consolidated Balance Sheets.


	September 30,				December 31,
Energy Supply Obligations ($ millions)	2018		2017		2017
Current:
Exchange Gas Obligation	$	9.5	$	8.9	$	5.4
Renewable Energy Portfolio Standards		5.2		3.7		4.0
Power Supply Contract Divestitures		0.3		0.3		0.3

Total Energy Supply Obligations – Current		15.0		12.9		9.7
Noncurrent:
Power Supply Contract Divestitures		0.7		1.0		0.9

Total Energy Supply Obligations	$	15.7	$	13.9	$	10.6