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Regulatory Matters

12 Months Ended

Dec. 31, 2022

Schedule Of Regulatory Assets and Liabilities [Line Items]

Regulatory Assets

Regulatory assets represent costs that are expected to be recovered in future regulated rates. The Company's regulatory assets reflected on the Consolidated Balance Sheets consist of the following as of December 31 (in millions):


	Weighted
	Average
	Remaining Life	2022		2021

Deferred net power costs	1 year	$	1,478	$	531
Asset retirement obligations	15 years	835		742
Employee benefit plans(1)	14 years	490		472
Deferred income taxes(2)	Various	373		342
Asset disposition costs	Various	231		285
Demand side management	10 years	224		211
Levelized depreciation	28 years	151		135
Unrealized losses on regulated derivative contracts	1 year	112		157
Environmental costs	30 years	111		108
Wildfire mitigation and vegetation management costs	Various	111		21
Deferred operating costs	10 years	83		103
Other	Various	863		856
Total regulatory assets		$	5,062	$	3,963

Reflected as:
Current assets		$	1,319	$	544
Noncurrent assets		3,743		3,419
Total regulatory assets		$	5,062	$	3,963

(1)Includes amounts not yet recognized as a component of net periodic benefit cost that are expected to be included in regulated rates when recognized.

(2)Amounts primarily represent income tax benefits related to certain property-related basis differences and other various differences that were previously passed on to customers and will be included in regulated rates when the temporary differences reverse.

The Company had regulatory assets not earning a return on investment of $2.3 billion and $1.8 billion as of December 31, 2022 and 2021, respectively.

Regulatory Liabilities

Regulatory liabilities represent income to be recognized or amounts to be returned to customers in future periods. The Company's regulatory liabilities reflected on the Consolidated Balance Sheets consist of the following as of December 31 (in millions):


	Weighted
	Average
	Remaining Life	2022		2021

Deferred income taxes(1)	Various	$	2,901	$	3,185
Cost of removal(2)	27 years	2,578		2,424
Revenue sharing mechanisms	2 years	426		188
Unrealized gains on regulated derivative contracts	1 year	343		86
Asset retirement obligations	31 years	250		345
Levelized depreciation	28 years	245		259
Employee benefit plans(3)	Various	180		243
Other	Various	446		484
Total regulatory liabilities		$	7,369	$	7,214

Reflected as:
Current liabilities		$	299	$	254
Noncurrent liabilities		7,070		6,960
Total regulatory liabilities		$	7,369	$	7,214

(1)Amounts primarily represent income tax liabilities related to the federal tax rate change from 35% to 21% that are probable to be passed on to customers, offset by income tax benefits related to certain property-related basis differences and other various differences that were previously passed on to customers and will be included in regulated rates when the temporary differences reverse.

(2)Amounts represent estimated costs, as accrued through depreciation rates and exclusive of ARO liabilities, of removing regulated property, plant and equipment in accordance with accepted regulatory practices. Amounts are deducted from rate base or otherwise accrue a carrying cost.

(3)Includes amounts not yet recognized as a component of net periodic benefit cost that are expected to be returned to customers in future periods when recognized.

PAC

Schedule Of Regulatory Assets and Liabilities [Line Items]

Regulatory Matters

Regulatory Assets

Regulatory assets represent costs that are expected to be recovered in future rates. PacifiCorp's regulatory assets reflected on the Consolidated Balance Sheets consist of the following as of December 31 (in millions):


	Weighted
	Average
	Remaining
	Life	2022		2021


Employee benefit plans(1)	16 years	$	290	$	286
Utah mine disposition(2)	Various	115		116
Unamortized contract values	1 year	18		36
Deferred net power costs	2 years	546		151

Environmental costs	30 years	111		108
Asset retirement obligation	29 years	275		241
Demand side management (DSM)	10 years	224		211
Wildfire mitigation and vegetation management costs	Various	111		21
Other	Various	190		182
Total regulatory assets		$	1,880	$	1,352

Reflected as:
Current assets		$	275	$	65
Noncurrent assets		1,605		1,287
Total regulatory assets		$	1,880	$	1,352

(1)Represents amounts not yet recognized as a component of net periodic benefit cost that are expected to be included in rates when recognized.

(2)Amounts represent regulatory assets established as a result of the Utah mine disposition in 2015 for the United Mine Workers of America ("UMWA") 1974 Pension Plan withdrawal and closure costs incurred to date considered probable of recovery.

PacifiCorp had regulatory assets not earning a return on investment of $1,200 million and $723 million as of December 31, 2022 and 2021, respectively.

Regulatory Liabilities

Regulatory liabilities represent income to be recognized or amounts to be returned to customers in future periods. PacifiCorp's regulatory liabilities reflected on the Consolidated Balance Sheets consist of the following as of December 31 (in millions):


	Weighted
	Average
	Remaining
	Life	2022		2021

Cost of removal(1)	26 years	$	1,332	$	1,187
Deferred income taxes(2)	Various	1,164		1,307

Unrealized gain on regulated derivatives	1 year	270		53
Other	Various	173		221
Total regulatory liabilities		$	2,939	$	2,768

Reflected as:
Current liabilities		$	96	$	118
Noncurrent liabilities		2,843		2,650
Total regulatory liabilities		$	2,939	$	2,768

(1)Amounts represent estimated costs, as generally accrued through depreciation rates, of removing property, plant and equipment in accordance with accepted regulatory practices. Amounts are deducted from rate base or otherwise accrue a carrying cost.

(2)Amounts primarily represent income tax liabilities related to the federal tax rate change from 35% to 21% that are probable of being passed on to customers, partially offset by income tax benefits related to certain property-related basis differences and other various differences that were previously passed on to customers and will be included in regulated rates when the temporary differences reverse.

MEC

Schedule Of Regulatory Assets and Liabilities [Line Items]

Regulatory Matters

Regulatory Assets

Regulatory assets represent costs that are expected to be recovered in future regulated rates. MidAmerican Energy's regulatory assets reflected on the Balance Sheets consist of the following as of December 31 (in millions):


	Weighted
	Average
	Remaining Life	2022		2021


Asset retirement obligations(1)	9 years	$	469	$	393
Employee benefit plans(2)	15 years	47		42

Other	Various	34		38
Total		$	550	$	473

(1)Amount predominantly relates to AROs for fossil-fueled and wind-powered generating facilities. Refer to Note 11 for a discussion of AROs.

(2)Represents amounts not yet recognized as a component of net periodic benefit cost that are expected to be included in regulated rates when recognized.

MidAmerican Energy had regulatory assets not earning a return on investment of $548 million and $470 million as of December 31, 2022 and 2021, respectively.

Regulatory Liabilities

Regulatory liabilities represent amounts expected to be returned to customers in future periods. MidAmerican Energy's regulatory liabilities reflected on the Balance Sheets consist of the following as of December 31 (in millions):


	Weighted
	Average
	Remaining Life	2022		2021

Cost of removal(1)	29 years	$	392	$	394
Iowa electric revenue sharing(2)	1 year	312		115
Asset retirement obligations(3)	31 years	247		341
Deferred income taxes(4)	Various	72		83
Pre-funded AFUDC on transmission MVPs(5)	57 years	34		34
Unrealized gain on regulated derivative contracts	1 year	31		26
Employee benefit plans(6)	N/A	—		55
Other	Various	31		32
Total		$	1,119	$	1,080

(1)Amounts represent estimated costs, as accrued through depreciation rates and exclusive of ARO liabilities, of removing utility plant in accordance with accepted regulatory practices. Amounts are deducted from rate base or otherwise accrue a carrying cost.

(2)Represents current-year accruals under a regulatory arrangement in Iowa in which equity returns exceeding specified thresholds reduce utility plant upon final determination.

(3)Amount represents the excess of nuclear decommission trust assets over the related ARO. Refer to Note 11 for a discussion of AROs.

(4)Amounts primarily represent income tax liabilities primarily related to the federal tax rate change from 35% to 21% that are probable to be passed on to customers, offset by income tax benefits related to state accelerated tax depreciation and certain property-related basis differences that were previously passed on to customers and will be included in regulated rates when the temporary differences reverse.

(5)Represents AFUDC accrued on transmission MVPs that is deducted from rate base as a result of the inclusion of related construction work-in-progress in rate base.

(6)Represents amounts not yet recognized as a component of net periodic benefit cost that are to be returned to customers in future periods when recognized.

Natural Gas Purchased for Resale

In February 2021, severe cold weather over the central U.S. caused disruptions in natural gas supply from the southern part of the U.S. These disruptions, combined with increased demand, resulted in historically high prices for natural gas purchased for resale to MidAmerican Energy's retail customers and caused an approximate $245 million increase in natural gas costs above those normally expected. These increased costs are reflected in cost of natural gas purchased for resale and other on the Statement of Operations and their recovery through the Purchased Gas Adjustment Clause is reflected in regulated natural gas and other revenue.

To mitigate the impact to MidAmerican Energy's customers, the IUB ordered the recovery of these higher costs to be applied to customer bills over the period April 2021 through April 2022 based on a customer's monthly natural gas usage. The unbilled portion of these costs as of December 31, 2021, is reflected in trade receivables, net on the Balance Sheet.

MidAmerican Funding, LLC

Schedule Of Regulatory Assets and Liabilities [Line Items]

Regulatory Matters

Regulatory MattersRefer to Note 5 of MidAmerican Energy's Notes to Financial Statements.

NPC

Schedule Of Regulatory Assets and Liabilities [Line Items]

Regulatory Matters

Regulatory Assets

Regulatory assets represent costs that are expected to be recovered in future rates. Nevada Power's regulatory assets reflected on the Consolidated Balance Sheets consist of the following as of December 31 (in millions):


	Weighted
	Average
	Remaining Life	2022		2021

Deferred energy costs	1 year	654		273
Decommissioning costs	3 years	116		169
Merger costs from 1999 merger	22 years	105		110
Unrealized loss on regulated derivative contracts	1 year	75		117
Asset retirement obligations	5 years	69		73
Deferred operating costs	13 years	67		93
Other	Various	208		184




Total regulatory assets		$	1,294	$	1,019

Reflected as:
Current assets		$	666	$	291
Noncurrent assets		628		728
Total regulatory assets		$	1,294	$	1,019

Nevada Power had regulatory assets not earning a return on investment of $320 million and $371 million as of December 31, 2022 and 2021, respectively. The regulatory assets not earning a return on investment primarily consist of merger costs from the 1999 merger, AROs, deferred operating costs, a portion of the employee benefit plans, losses on reacquired debt and deferred energy costs.

Regulatory Liabilities

Regulatory liabilities represent amounts that are expected to be returned to customers in future periods. Nevada Power's regulatory liabilities reflected on the Consolidated Balance Sheets consist of the following as of December 31 (in millions):


	Weighted
	Average
	Remaining Life	2022		2021

Deferred income taxes(1)	Various	$	560	$	603
Cost of removal(2)	31 years	358		348


Earning sharing mechanism	4 years	114		73
Other	Various	106		125
Total regulatory liabilities		$	1,138	$	1,149

Reflected as:
Current liabilities		$	45	$	49
Noncurrent liabilities		1,093		1,100
Total regulatory liabilities		$	1,138	$	1,149

(1)Amounts primarily represent income tax liabilities related to the federal tax rate change from 35% to 21% that are probable to be passed on to customers, offset by income tax benefits related to accelerated tax depreciation and certain property-related basis differences that were previously passed on to customers and will be included in regulated rates when the temporary differences reverse.

Deferred Energy

Nevada statutes permit regulated utilities to adopt deferred energy accounting procedures. The intent of these procedures is to ease the effect on customers of fluctuations in the cost of purchased natural gas, fuel and electricity and are subject to annual prudency review by the PUCN. Under deferred energy accounting, to the extent actual fuel and purchased power costs exceed fuel and purchased power costs recoverable through current rates that excess is not recorded as a current expense on the Consolidated Statements of Operations but rather is deferred and recorded as a regulatory asset on the Consolidated Balance Sheets and would be included in the table above as deferred energy costs. Conversely, a regulatory liability is recorded to the extent fuel and purchased power costs recoverable through current rates exceed actual fuel and purchased power costs and is included in the table above as deferred energy costs. These excess amounts are reflected in quarterly adjustments to rates and recorded as cost of fuel, energy and capacity in future time periods.

SPPC

Schedule Of Regulatory Assets and Liabilities [Line Items]

Regulatory Matters

Regulatory Assets

Regulatory assets represent costs that are expected to be recovered in future rates. Sierra Pacific's regulatory assets reflected on the Consolidated Balance Sheets consist of the following as of December 31 (in millions):


	Weighted
	Average
	Remaining Life	2022		2021

Deferred energy costs	1 year	$	277	$	107
Natural disaster protection plan	1 year	69		62
Merger costs from 1999 merger	24 years	63		66
Employee benefit plans(1)	8 years	57		46
Deferred operating costs	7 years	35		31
Unrealized loss on regulated derivative contracts	1 year	21		35




Other	Various	89		93
Total regulatory assets		$	611	$	440

Reflected as:
Current assets		$	357	$	177
Noncurrent assets		254		263
Total regulatory assets		$	611	$	440

(1)Represents amounts not yet recognized as a component of net periodic benefit cost that are expected to be included in regulated rates when recognized.

Sierra Pacific had regulatory assets not earning a return on investment of $143 million and $158 million as of December 31, 2022 and 2021, respectively. The regulatory assets not earning a return on investment primarily consist of merger costs from the 1999 merger, a portion of the employee benefit plans, losses on reacquired debt, AROs and legacy meters.

Regulatory Liabilities

Regulatory liabilities represent amounts that are expected to be returned to customers in future periods. Sierra Pacific's regulatory liabilities reflected on the Consolidated Balance Sheets consist of the following as of December 31 (in millions):


	Weighted
	Average
	Remaining Life	2022		2021

Deferred income taxes(1)	Various	$	223	$	234
Cost of removal(2)	35 years	200		201


Other	Various	32		28
Total regulatory liabilities		$	455	$	463

Reflected as:
Current liabilities		$	19	$	19
Noncurrent liabilities		436		444
Total regulatory liabilities		$	455	$	463

(1)Amounts primarily represent income tax liabilities related to the federal tax rate change from 35% to 21% that are probable to be passed on to customers, offset by income tax benefits related to accelerated tax depreciation and certain property-related basis differences and other various differences that were previously passed on to customers and will be included in regulated rates when the temporary differences reverse.

Deferred Energy

Regulatory Rate Review

In June 2022, Sierra Pacific filed a regulatory rate review with the PUCN that requested an annual revenue increase of $88 million, or 9.7%. In addition, a filing was made to revise depreciation rates based on a study, the results of which are reflected in the proposed revenue requirement. In August 2022, Sierra Pacific filed an updated certification filing that requested an annual revenue increase of $77 million, or 8.5%. Parties to the review filed testimony and evidence in August and September 2022. Hearings in the cost of capital, revenue requirement, and rate design phases were held in September, October, and November 2022, respectively. In December 2022, the PUCN issued an order approving an increase in base rates of $58 million, effective January 1, 2023, reflecting a reduction in Sierra Pacific's requested rate of return, updated depreciation and amortization rates for its electric operations and updated time of use periods to reflect the changes in system costs due to the increased solar generation on the system.

EEGH

Schedule Of Regulatory Assets and Liabilities [Line Items]

Regulatory Matters

Regulatory Assets

Regulatory assets represent costs that are expected to be recovered in future regulated rates. Eastern Energy Gas' regulatory assets reflected on the Consolidated Balance Sheets consist of the following as of December 31 (in millions):




	Weighted Average Remaining Life	2022		2021

Employee benefit plans(1)	11 years	$	32	$	62


Other	Various	16		12






Total regulatory assets		$	48	$	74

Reflected as:
Other current assets		$	8	$	6
Other assets		40		68
Total regulatory assets		$	48	$	74

(1)Represents costs expected to be recovered through future rates generally over the expected remaining service period of plan participants by certain rate-regulated subsidiaries.

Eastern Energy Gas had regulatory assets not earning a return on investment of $44 million and $8 million as of December 31, 2022 and 2021, respectively.

Regulatory Liabilities

Regulatory liabilities represent income to be recognized or amounts expected to be returned to customers in future periods. Eastern Energy Gas' regulatory liabilities reflected on the Consolidated Balance Sheets consist of the following as of December 31 (in millions):




	Weighted Average Remaining Life	2022		2021

Income taxes refundable through future rates(1)	Various	$	406	$	468
Other postretirement benefit costs(2)	Various	123		116
Provision for rate refunds(3)		90		—
Cost of removal(4)	53 years	82		73

Other	Various	21		28

Total regulatory liabilities		$	722	$	685

Reflected as:
Current liabilities		$	126	$	40
Noncurrent liabilities		596		645
Total regulatory liabilities		$	722	$	685

(2)Reflects a regulatory liability for the collection of postretirement benefit costs allowed in rates in excess of expense incurred.

(3)Reflects amounts expected to be refunded to customers in late February 2023 in connection with the EGTS rate case. See below for more information.

(4)Amounts represent estimated costs, as accrued through depreciation rates and exclusive of ARO liabilities, of removing regulated property, plant and equipment in accordance with accepted regulatory practices. Refer to Note 11 for more information.

Regulatory Matters

Eastern Gas Transmission and Storage, Inc.

In September 2021, EGTS filed a general rate case for its FERC-jurisdictional services, with proposed rates to be effective November 1, 2021. EGTS' previous general rate case was settled in 1998. EGTS proposed an annual cost-of-service of approximately $1.1 billion, and requested increases in various rates, including general system storage rates by 85% and general system transmission rates by 60%. In October 2021, the FERC issued an order that accepted the November 1, 2021 effective date for certain changes in rates, while suspending the other changes for five months following the proposed effective date, until April 1, 2022, subject to refund. In September 2022, a settlement agreement was filed with the FERC, resolving EGTS' general rate case for its FERC-jurisdictional services and providing for increased service rates and decreased depreciation rates. Under the terms of the settlement agreement, EGTS' rates result in an increase to annual firm transmission and storage revenues of approximately $160 million and a decrease in annual depreciation expense of approximately $30 million, compared to the rates in effect prior to April 1, 2022. As of December 31, 2022, EGTS' provision for rate refund for April 2022 through December 2022 totaled $90 million and was included in current regulatory liabilities on the Consolidated Balance Sheet. In November 2022, the FERC approved the settlement agreement.

In July 2017, the FERC audit staff communicated to EGTS that it had substantially completed an audit of EGTS' compliance with the accounting and reporting requirements of the FERC's Uniform System of Accounts and provided a description of matters and preliminary recommendations. In November 2017, the FERC audit staff issued its audit report. In December 2017, EGTS provided its response to the audit report. EGTS requested FERC review of the contested findings and submitted its plan for compliance with the uncontested portions of the report. EGTS reached resolution of certain matters with the FERC in the fourth quarter of 2018. EGTS recognized a charge for a disallowance of plant, originally established beginning in 2012, for the resolution of one matter with the FERC. In December 2020, the FERC issued a final ruling on the remaining matter, which resulted in a $43 million ($31 million after-tax) estimated charge for disallowance of capitalized AFUDC, recorded within operations and maintenance expense in the Consolidated Statement of Operations. As a condition of the December 2020 ruling, EGTS filed its proposed accounting entries and supporting documentation with the FERC during the second quarter of 2021. During the finalization of these entries, EGTS refined the estimated charge for disallowance of capitalized AFUDC, which resulted in a reduction to the estimated charge of $11 million ($8 million after-tax) that was recorded in operations and maintenance expense in the Consolidated Statement of Operations in the second quarter of 2021. In September 2021, the FERC approved EGTS' accounting entries and supporting documentation.

In December 2014, EGTS entered into a precedent agreement with Atlantic Coast Pipeline, LLC ("Atlantic Cost Pipeline") for the project previously intended for EGTS to provide approximately 1,500,000 decatherms ("Dth") of firm transmission service to various customers in connection with the Atlantic Coast Pipeline project ("Supply Header Project"). As a result of the cancellation of the Atlantic Coast Pipeline project, in the second quarter of 2020 Eastern Energy Gas recorded a charge of $482 million ($359 million after-tax) in operations and maintenance expense in its Consolidated Statement of Operations associated with the probable abandonment of a significant portion of the project as well as the establishment of a $75 million ARO. In the third quarter of 2020, Eastern Energy Gas recorded an additional charge of $10 million ($7 million after-tax) associated with the probable abandonment of a significant portion of the project and a $29 million ($20 million after-tax) benefit from a revision to the previously established ARO, both of which were recorded in operations and maintenance expense in Eastern Energy Gas' Consolidated Statement of Operations. As EGTS evaluates its future use, approximately $40 million remains within property, plant and equipment for a potential modified project.

Cove Point

In January 2020, pursuant to the terms of a previous settlement, Cove Point filed a general rate case for its FERC-jurisdictional services, with proposed rates to be effective March 1, 2020. Cove Point proposed an annual cost-of-service of $182 million. In February 2020, FERC approved suspending the changes in rates for five months following the proposed effective date, until August 1, 2020, subject to refund. In November 2020, Cove Point reached an agreement in principle with the active participants in the general rate case proceeding. Under the terms of the agreement in principle, Cove Point's rates effective August 1, 2020 resulted in an increase to annual revenues of $4 million and a decrease in annual depreciation expense of $1 million, compared to the rates in effect prior to August 1, 2020. The interim settlement rates were implemented November 1, 2020, and Cove Point's provision for rate refunds for August 2020 through October 2020 totaled $7 million. The agreement in principle was reflected in a stipulation and agreement filed with the FERC in January 2021. In March 2021, the FERC approved the stipulation and agreement and the rate refunds to customers were processed in late April 2021.

EGTS

Schedule Of Regulatory Assets and Liabilities [Line Items]

Regulatory Matters

Regulatory Assets

Regulatory assets represent costs that are expected to be recovered in future regulated rates. EGTS' regulatory assets reflected on the Consolidated Balance Sheets consist of the following as of December 31 (in millions):




	Weighted Average Remaining Life	2022		2021

Employee benefit plans(1)	11 years	$	31	$	58


Other	Various	8		6






Total regulatory assets		$	39	$	64

Reflected as:
Current assets		$	5	$	2
Noncurrent assets		34		62
Total regulatory assets		$	39	$	64

(1)Represents costs expected to be recovered through future rates generally over the expected remaining service period of plan participants.

EGTS had regulatory assets not earning a return on investment of $39 million and $64 million as of December 31, 2022 and 2021, respectively.

Regulatory Liabilities

Regulatory liabilities represent income to be recognized or amounts expected to be returned to customers in future periods. EGTS' regulatory liabilities reflected on the Consolidated Balance Sheets consist of the following as of December 31 (in millions):


	Weighted Average Remaining Life	2022		2021

Income taxes refundable through future rates(1)	Various	$	382	$	391
Other postretirement benefit costs(2)	Various	123		116
Provision for rate refunds(3)		90		—
Cost of removal(4)	53 years	24		16

Other	Various	8		9
Total regulatory liabilities		$	627	$	532

Reflected as:
Current liabilities		$	109	$	25
Noncurrent liabilities		518		507
Total regulatory liabilities		$	627	$	532

(2)Reflects a regulatory liability for the collection of postretirement benefit costs allowed in rates in excess of expense incurred.

(3)Reflects amounts expected to be refunded to customers in late February 2023 in connection with the EGTS rate case. See below for more information.

Regulatory Matters

In July 2017, the FERC audit staff communicated to EGTS that it had substantially completed an audit of EGTS' compliance with the accounting and reporting requirements of the FERC's Uniform System of Accounts and provided a description of matters and preliminary recommendations. In November 2017, the FERC audit staff issued its audit report. In December 2017, EGTS provided its response to the audit report. EGTS requested FERC review of the contested findings and submitted its plan for compliance with the uncontested portions of the report. EGTS reached resolution of certain matters with the FERC in the fourth quarter of 2018. EGTS recognized a charge for a disallowance of plant, originally established beginning in 2012, for the resolution of one matter with the FERC. In December 2020, the FERC issued a final ruling on the remaining matter, which resulted in a $43 million ($31 million after-tax) estimated charge for disallowance of capitalized AFUDC, recorded in disallowance and abandonment of utility plant on the Consolidated Statement of Operations. As a condition of the December 2020 ruling, EGTS filed its proposed accounting entries and supporting documentation with the FERC during the second quarter of 2021. During the finalization of these entries, EGTS refined the estimated charge for disallowance of capitalized AFUDC, which resulted in a reduction to the estimated charge of $11 million ($8 million after-tax) that was recorded in disallowance and abandonment of utility plant on the Consolidated Statement of Operations in the second quarter of 2021. In September 2021, the FERC approved EGTS' accounting entries and supporting documentation.

In December 2014, EGTS entered into a precedent agreement with Atlantic Coast Pipeline, LLC ("Atlantic Cost Pipeline") for the project previously intended for EGTS to provide approximately 1,500,000 decatherms ("Dth") of firm transmission service to various customers in connection with the Atlantic Coast Pipeline project ("Supply Header Project"). As a result of the cancellation of the Atlantic Coast Pipeline project, in the second quarter of 2020 EGTS recorded a charge of $482 million ($359 million after-tax) in disallowance and abandonment of utility plant on the Consolidated Statement of Operations associated with the probable abandonment of a significant portion of the project as well as the establishment of a $75 million ARO. In the third quarter of 2020, EGTS recorded an additional charge of $10 million ($7 million after-tax) associated with the probable abandonment of a significant portion of the project and a $29 million ($20 million after-tax) benefit from a revision to the previously established ARO, both of which were recorded in disallowance and abandonment of utility plant on the Consolidated Statement of Operations. As EGTS evaluates its future use, approximately $40 million remains within property, plant and equipment for a potential modified project.