XML 41 R23.htm IDEA: XBRL DOCUMENT

Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2021

Schedule of Accumulated Other Comprehensive Income (Loss)

The changes in the components of Accumulated other comprehensive loss during the nine months ended September 30, 2021 are as follows:


$ in millions	Gains / (losses) on cash flow hedges		Change in unfunded pension and postretirement benefit obligations		Total
Balance as of January 1, 2021	$	13.6	$	(25.9)	$	(12.3)


Amounts reclassified from AOCL to earnings	(0.6)		1.5		0.9
Net current period other comprehensive income / (loss)	(0.6)		1.5		0.9

Balance as of September 30, 2021	$	13.0	$	(24.4)	$	(11.4)

Reclassification out of Accumulated Other Comprehensive Income

The amounts reclassified out of Accumulated other comprehensive loss by component during the three and nine months ended September 30, 2021 and 2020 are as follows:


Details about Accumulated Other Comprehensive Loss components	Affected line item in the Condensed Consolidated Statements of Operations	Three months ended				Nine months ended
		September 30,				September 30,
$ in millions		2021		2020		2021		2020
Gains and losses on cash flow hedges (Note 4):
	Interest expense	$	(0.2)	$	(0.3)	$	(0.7)	$	(0.9)
	Income tax expense	—		—		0.1		0.1
	Net of income taxes	(0.2)		(0.3)		(0.6)		(0.8)





Amortization of defined benefit pension items (Note 7):
	Other expense	0.6		0.3		1.9		0.9
	Income tax benefit	(0.1)		—		(0.4)		(0.1)
	Net of income taxes	0.5		0.3		1.5		0.8

Total reclassifications for the period, net of income taxes		$	0.3	$	—	$	0.9	$	—

Schedule of Supplemental Financial Information

Accounts receivable were as follows as of September 30, 2021 and December 31, 2020:


	September 30,		December 31,
$ in millions	2021		2020
Accounts receivable, net:
Customer receivables	$	47.3	$	48.5
Unbilled revenue	15.6		21.6
Amounts due from affiliates	1.5		0.2
Due from PJM transmission enhancement settlement	1.7		1.7
Other	3.1		0.5
Allowance for credit losses	(0.9)		(2.8)
Total accounts receivable, net	$	68.3	$	69.7

Accounts Receivable, Allowance for Credit Loss

The following table is a roll forward of our allowance for credit losses related to the accounts receivable balances for the nine months ended September 30, 2021 and 2020:


$ in millions	Beginning Allowance Balance		Current Period Provision		Write-offs Charged Against Allowances		Recoveries Collected		Ending Allowance Balance
2021	$	2.8	$	(0.4)	$	(2.6)	$	1.1	$	0.9
2020	$	0.4	$	2.8	$	(1.4)	$	1.4	$	3.2

The allowance for credit losses primarily relates to utility customer receivables, including unbilled amounts. Expected credit loss estimates are developed by disaggregating customers into those with similar credit risk characteristics and using historical credit loss experience. In addition, we also consider how current and future economic conditions are expected to impact collectability, as applicable, including the economic impacts of the COVID-19 pandemic on our receivable balance as of September 30, 2021. Amounts are written off when reasonable collections efforts have been exhausted. During 2021, the current period provision and allowance for credit losses have decreased due to lower past due customer receivable balances. See Note 13 – Risks and Uncertainties for additional discussion of the COVID-19 pandemic.

New Accounting Pronouncements, Policy [Policy Text Block]

New Accounting Pronouncements Adopted in 2021 – We have assessed and determined that the new accounting pronouncements adopted did not have a material impact on our consolidated financial statements.

New Accounting Pronouncements Issued But Not Yet Effective – The following table provides a brief description of recent accounting pronouncements that could have a material impact on our consolidated financial statements. Accounting pronouncements not listed below were assessed and determined to be either not applicable or are expected to have no material impact on our consolidated financial statements.


ASU Number and Name	Description	Date of Adoption	Effect on the financial statements upon adoption
2020-04, Reference Rate Form (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting	The standard provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions that reference to LIBOR or another reference rate expected to be discontinued by reference rate reform. This standard is effective for a limited period of time (March 12, 2020 - December 21, 2022).	Effective for all entities March 12, 2020 - December 31, 2022	We are currently evaluating the impact of adopting the standard on our condensed consolidated financial statements.

Schedule of Cash and Cash Equivalents [Table Text Block]

The following table provides a summary of cash, cash equivalents, and restricted cash amounts reported on the Condensed Consolidated Balance Sheets that reconcile to the total of such amounts as shown on the Condensed Consolidated Statements of Cash Flows:


$ in millions	September 30, 2021		December 31, 2020
Cash and cash equivalents	$	41.5	$	25.4
Restricted cash	0.1		0.1
Cash, Cash Equivalents, and Restricted Cash, End of Period	$	41.6	$	25.5

Schedule of New Accounting Pronouncements


ASU Number and Name	Description	Date of Adoption	Effect on the financial statements upon adoption
2020-04, Reference Rate Form (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting	The standard provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions that reference to LIBOR or another reference rate expected to be discontinued by reference rate reform. This standard is effective for a limited period of time (March 12, 2020 - December 21, 2022).	Effective for all entities March 12, 2020 - December 31, 2022	We are currently evaluating the impact of adopting the standard on our condensed consolidated financial statements.

Subsidiaries [Member]

Schedule of Accumulated Other Comprehensive Income (Loss)

The changes in the components of Accumulated other comprehensive loss during the nine months ended September 30, 2021 are as follows:


$ in millions	Change in Accumulated other comprehensive loss
Balance as of January 1, 2021	$	(42.1)


Amounts reclassified from AOCL to earnings	2.9
Net current period other comprehensive income	2.9

Balance as of September 30, 2021	$	(39.2)

Reclassification out of Accumulated Other Comprehensive Income

The amounts reclassified out of Accumulated other comprehensive loss by component during the three and nine months ended September 30, 2021 and 2020 are as follows:


Details about Accumulated Other Comprehensive Loss components	Affected line item in the Condensed Consolidated Statements of Operations	Three months ended				Nine months ended
		September 30,				September 30,
$ in millions		2021		2020		2021		2020
Gains and losses on cash flow hedges (Note 4):
	Interest expense	$	—	$	—	$	—	$	(0.2)
	Income tax benefit	—		(0.1)		—		(0.1)
	Net of income taxes	—		(0.1)		—		(0.3)





Amortization of defined benefit pension items (Note 7):
	Other expense	1.3		1.0		3.8		3.0
	Income tax benefit	(0.3)		(0.2)		(0.9)		(0.6)
	Net of income taxes	1.0		0.8		2.9		2.4

Total reclassifications for the period, net of income taxes		$	1.0	$	0.7	$	2.9	$	2.1

Schedule of Supplemental Financial Information

Accounts receivable were as follows as of September 30, 2021 and December 31, 2020:


	September 30,		December 31,
$ in millions	2021		2020
Accounts receivable, net:
Customer receivables	46.6		$	47.6
Unbilled revenue	15.6		21.6
Amounts due from affiliates	2.3		1.9
Due from PJM transmission enhancement settlement	1.7		1.7
Other	3.2		0.2
Allowance for credit losses	(0.9)		(2.8)
Total accounts receivable, net	$	68.5	$	70.2

Accounts Receivable, Allowance for Credit Loss

The following table is a roll forward of our allowance for credit losses related to the accounts receivable balances for the nine months ended September 30, 2021 and 2020:


$ in millions	Beginning Allowance Balance		Current Period Provision		Write-offs Charged Against Allowances		Recoveries Collected		Ending Allowance Balance
2021	$	2.8	$	(0.4)	$	(2.6)	$	1.1	$	0.9
2020	$	0.4	$	2.8	$	(1.4)	$	1.4	$	3.2

New Accounting Pronouncements, Policy [Policy Text Block]

New Accounting Pronouncements Adopted in 2021 – We have assessed and determined that the new accounting pronouncements adopted did not have a material impact on our financial statements.

New Accounting Pronouncements Issued But Not Yet Effective – The following table provides a brief description of recent accounting pronouncements that could have a material impact on our financial statements. Accounting pronouncements not listed below were assessed and determined to be either not applicable or are expected to have no material impact on our financial statements.


ASU Number and Name	Description	Date of Adoption	Effect on the financial statements upon adoption
2020-04, Reference Rate Form (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting	The standard provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions that reference to LIBOR or another reference rate expected to be discontinued by reference rate reform. This standard is effective for a limited period of time (March 12, 2020 - December 21, 2022).	Effective for all entities March 12, 2020 - December 31, 2022	We are currently evaluating the impact of adopting the standard on our condensed financial statements.

Schedule of Cash and Cash Equivalents [Table Text Block]

The following table provides a summary of cash, cash equivalents, and restricted cash amounts reported on the Condensed Balance Sheets that reconcile to the total of such amounts as shown on the Condensed Statements of Cash Flows:


$ in millions	September 30, 2021		December 31, 2020
Cash and cash equivalents	$	29.8	$	11.7
Restricted cash	0.1		0.1
Cash, Cash Equivalents, and Restricted Cash, End of Period	$	29.9	$	11.8