MATERIALS, SUPPLIES, AND INVENTORIES

3 Months Ended

Mar. 31, 2017

Inventory Disclosure [Abstract]

MATERIALS, SUPPLIES, AND INVENTORIES

MATERIALS, SUPPLIES, AND INVENTORIES

Our inventory consisted of:

(in millions)	March 31, 2017		December 31, 2016
Natural gas in storage	$	45.8	$	223.1
Materials and supplies	208.3		206.5
Fossil fuel	163.0		158.0
Total	$	417.1	$	587.6

PGL and NSG price natural gas storage injections at the calendar year average of the cost of natural gas supply purchased. Withdrawals from storage are priced using the LIFO cost method. For interim periods, the difference between current projected replacement cost and the LIFO cost for quantities of natural gas temporarily withdrawn from storage is recorded as a temporary LIFO liquidation debit or credit. At March 31, 2017, we had a temporary LIFO liquidation credit of $31.6 million recorded within other current liabilities on our balance sheet. Due to seasonality requirements, PGL and NSG expect these interim reductions in LIFO layers to be replenished by year end.

Substantially all other natural gas in storage, materials and supplies, and fossil fuel inventories are recorded using the weighted-average cost method of accounting.