0001193125-13-312856.txt : 20130731 0001193125-13-312856.hdr.sgml : 20130731 20130731171910 ACCESSION NUMBER: 0001193125-13-312856 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 10 CONFORMED PERIOD OF REPORT: 20130630 FILED AS OF DATE: 20130731 DATE AS OF CHANGE: 20130731 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NORTHWEST PIPELINE LLC CENTRAL INDEX KEY: 0000110019 STANDARD INDUSTRIAL CLASSIFICATION: NATURAL GAS TRANSMISSION [4922] IRS NUMBER: 261157701 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-07414 FILM NUMBER: 13999966 BUSINESS ADDRESS: STREET 1: 295 CHIPETA WAY CITY: SALT LAKE CITY STATE: UT ZIP: 84108 BUSINESS PHONE: 801-583-8800 MAIL ADDRESS: STREET 1: 295 CHIPETA WAY CITY: SALT LAKE CITY STATE: UT ZIP: 84108 FORMER COMPANY: FORMER CONFORMED NAME: NORTHWEST PIPELINE GP DATE OF NAME CHANGE: 20071002 FORMER COMPANY: FORMER CONFORMED NAME: NORTHWEST PIPELINE CORP DATE OF NAME CHANGE: 19920703 10-Q 1 d576183d10q.htm 10-Q 10-Q
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 10-Q

 

 

(Mark One)

þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2013

OR

 

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                          to                         

Commission file number: 1-7414

 

 

NORTHWEST PIPELINE LLC

(Exact name of registrant as specified in its charter)

 

 

 

DELAWARE   26-1157701

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

295 Chipeta Way

Salt Lake City, Utah

  84108
(Address of principal executive offices)   (Zip Code)

Registrant’s telephone number, including area code: (801) 583-8800

NORTHWEST PIPELINE GP

(Former name, former address and former fiscal year, if changed since last report)

 

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  þ    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  þ    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

 

Large accelerated filer   ¨    Accelerated filer   ¨
Non-accelerated filer   þ  (Do not check if a smaller reporting company)    Smaller reporting company   ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  þ

THE REGISTRANT MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION (H)(1)(a) AND (b) OF FORM 10-Q AND IS THEREFORE FILING THIS FORM 10-Q WITH THE REDUCED DISCLOSURE FORMAT.

 

 

 


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NORTHWEST PIPELINE LLC

FORM 10-Q

INDEX

 

      Page  

PART I. FINANCIAL INFORMATION:

  

Item 1. Financial Statements -

  

Statement of Comprehensive Income — Three and Six Months Ended June 30, 2013 and 2012

     1   

Balance Sheet — June 30, 2013 and December 31, 2012

     2   

Statement of Cash Flows — Six Months Ended June 30, 2013 and 2012

     4   

Notes to Financial Statements

     5   

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

     9   

Item 4. Controls and Procedures

     10   

PART II. OTHER INFORMATION:

  

Item 1. Legal Proceedings

     11   

Item 5. Other Information

     11   

Item 6. Exhibits

     12   

Forward Looking Statements

Certain matters contained in this report include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements relate to anticipated financial performance, management’s plans and objectives for future operations, business prospects, outcome of regulatory proceedings, market conditions, and other matters. We make these forward-looking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995.

All statements, other than statements of historical facts, included in this report that address activities, events or developments that we expect, believe or anticipate will exist or may occur in the future are forward-looking statements. Forward-looking statements can be identified by various forms of words such as “anticipates,” “believes,” “seeks,” “could,” “may,” “should,” “continues,” “estimates,” “expects,” “assumes,” “forecasts,” “intends,” “might,” “goals,” “objectives,” “targets,” “planned,” “potential,” “projects,” “scheduled,” “will,” “guidance,” “outlook,” “in service date,” or other similar expressions. These statements are based on management’s beliefs and assumptions and on information currently available to management and include, among others, statements regarding:

 

   

Amounts and nature of future capital expenditures;

 

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Expansion and growth of our business and operations;

 

   

Financial condition and liquidity;

 

   

Business strategy;

 

   

Cash flow from operations or results of operations;

 

   

Rate case filings;

 

   

Natural gas prices, supply, and demand; and

 

   

Demand for our services.

Forward-looking statements are based on numerous assumptions, uncertainties, and risks that could cause future events or results to be materially different from those stated or implied in this report. Many of the factors that will determine these results are beyond our ability to control or predict. Specific factors that could cause actual results to differ from results contemplated by the forward-looking statements include, among others, the following:

 

   

Availability of supplies, market demand, and volatility of prices;

 

   

Inflation, interest rates and general economic conditions (including future disruptions and volatility in the global credit markets and the impact of these events on our customers and suppliers);

 

   

The strength and financial resources of our competitors and the effects of competition;

 

   

Development of alternative energy sources;

 

   

The impact of operational and development hazards and unforeseen interruptions;

 

   

Costs of, changes in, or the results of laws, government regulations (including safety and environmental regulations), environmental liabilities, litigation, and rate proceedings;

 

   

Our allocated costs for defined benefit pension plans and other postretirement benefit plans sponsored by our affiliates;

 

   

Changes in maintenance and construction costs;

 

   

Changes in the current geopolitical situation;

 

   

Our exposure to the credit risks of our customers and counterparties;

 

   

Risks related to strategy and financing, including restrictions stemming from our debt agreements, future changes in our credit ratings and the availability and cost of capital;

 

   

Risks associated with weather and natural phenomenon, including climate conditions;

 

   

Acts of terrorism, including cybersecurity threats and related disruptions; and

 

   

Additional risks described in our filings with the Securities and Exchange Commission (SEC).

Given the uncertainties and risk factors that could cause our actual results to differ materially from those contained in any forward-looking statement, we caution investors not to unduly rely on our forward-looking statements. We disclaim any obligations to and do not intend to update the above list or to announce publicly the result of any revisions to any of the forward-looking statements to reflect future events or developments.

 

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In addition to causing our actual results to differ, the factors listed above and referred to below may cause our intentions to change from those statements of intention set forth in this report. Such changes in our intentions may also cause our results to differ. We may change our intentions, at any time and without notice, based upon changes in such factors, our assumptions, or otherwise.

Because forward-looking statements involve risks and uncertainties, we caution that there are important factors, in addition to those listed above, that may cause actual results to differ materially from those contained in the forward-looking statements. For a detailed discussion of those factors, see Part I, Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2012.

 

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PART I – FINANCIAL INFORMATION

ITEM 1. Financial Statements.

NORTHWEST PIPELINE GP

STATEMENT OF COMPREHENSIVE INCOME

(Thousands of Dollars)

(Unaudited)

 

     Three months ended     Six months ended  
     June 30,     June 30,  
      2013     2012     2013     2012  

OPERATING REVENUES

   $ 113,853     $ 106,311     $ 232,587     $ 217,683  
  

 

 

   

 

 

   

 

 

   

 

 

 

OPERATING EXPENSES:

        

General and administrative

     15,773       17,417       31,983       34,231  

Operation and maintenance

     18,693       19,236       35,488       36,652  

Depreciation

     23,728       23,225       47,740       46,535  

Regulatory debits (credits)

     165       (115     350       (404

Taxes, other than income taxes

     4,352       3,737       8,692       8,199  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     62,711       63,500       124,253       125,213  
  

 

 

   

 

 

   

 

 

   

 

 

 

OPERATING INCOME

     51,142       42,811       108,334       92,470  
  

 

 

   

 

 

   

 

 

   

 

 

 

OTHER (INCOME) AND OTHER EXPENSES:

        

Interest expense

     11,555       11,587       23,109       23,180  

Allowance for equity and borrowed funds used during construction

     (371     (742     (647     (1,053

Miscellaneous other (income) expenses, net

     (67     80       209       149  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other (income) and other expenses

     11,117       10,925       22,671       22,276  
  

 

 

   

 

 

   

 

 

   

 

 

 

NET INCOME

     40,025       31,886       85,663       70,194  

CASH FLOW HEDGES:

        

Amortization of cash flow hedges into Other interest

     (16     (15     (31     (31
  

 

 

   

 

 

   

 

 

   

 

 

 

COMPREHENSIVE INCOME

   $ 40,009     $ 31,871     $ 85,632     $ 70,163  
  

 

 

   

 

 

   

 

 

   

 

 

 

See accompanying notes.

 

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NORTHWEST PIPELINE GP

BALANCE SHEET

(Thousands of Dollars)

(Unaudited)

 

     June 30,
2013
     December 31,
2012
 

ASSETS

  

CURRENT ASSETS:

     

Cash

   $ 100      $ 117  

Receivables:

     

Trade

     37,964        39,836  

Affiliated companies

     2,253        1,683  

Advances to affiliate

     112,195        29,322  

Other

     7,977        6,700  

Materials and supplies, less reserves of $28 at June 30, 2013 and $81 at December 31, 2012

     10,320        10,137  

Exchange gas due from others

     3,456        3,426  

Exchange gas offset

     1,069        1,277  

Prepayments and other

     4,343        3,353  
  

 

 

    

 

 

 

Total current assets

     179,677        95,851  
  

 

 

    

 

 

 

PROPERTY, PLANT AND EQUIPMENT, at cost

     3,173,360        3,163,489  

Less-Accumulated depreciation

     1,190,852        1,159,944  
  

 

 

    

 

 

 

Total property, plant and equipment, net

     1,982,508        2,003,545  
  

 

 

    

 

 

 

OTHER ASSETS:

     

Deferred charges

     7,474        7,918  

Regulatory assets

     58,645        60,298  
  

 

 

    

 

 

 

Total other assets

     66,119        68,216  
  

 

 

    

 

 

 

Total assets

   $ 2,228,304      $ 2,167,612  
  

 

 

    

 

 

 

See accompanying notes.

 

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NORTHWEST PIPELINE GP

BALANCE SHEET

(Thousands of Dollars)

(Unaudited)

 

     June 30,      December 31,  
     2013      2012  

LIABILITIES AND OWNER’S EQUITY

  

CURRENT LIABILITIES:

     

Payables:

     

Trade

   $ 19,076      $ 18,383  

Affiliated companies

     10,163        10,912  

Accrued liabilities:

     

Taxes, other than income taxes

     12,354        10,961  

Interest

     4,045        4,045  

Exchange gas due to others

     2,925        6,572  

Other

     5,044        4,467  
  

 

 

    

 

 

 

Total current liabilities

     53,607        55,340  
  

 

 

    

 

 

 

LONG-TERM DEBT

     694,125        694,027  

OTHER NONCURRENT LIABILITIES:

     

Asset retirement obligations

     69,502        67,557  

Other

     24,200        22,450  
  

 

 

    

 

 

 

Total other noncurrent liabilities

     93,702        90,007  
  

 

 

    

 

 

 

CONTINGENT LIABILITIES AND COMMITMENTS (Note 2)

     

OWNER’S EQUITY:

     

Owner’s capital

     1,060,592        1,060,592  

Retained earnings

     326,095        267,432  

Accumulated other comprehensive income

     183        214  
  

 

 

    

 

 

 

Total owner’s equity

     1,386,870        1,328,238  
  

 

 

    

 

 

 

Total liabilities and owner’s equity

   $ 2,228,304      $ 2,167,612  
  

 

 

    

 

 

 

See accompanying notes.

 

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NORTHWEST PIPELINE GP

STATEMENT OF CASH FLOWS

(Thousands of Dollars)

(Unaudited)

 

     Six months ended June 30,  
     2013     2012  

OPERATING ACTIVITIES:

    

Net income

   $ 85,663     $ 70,194  

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

    

Depreciation

     47,740       46,535  

Regulatory debits (credits)

     350       (404

Amortization of deferred charges and credits

     830       795  

Allowance for equity funds used during construction

     (436     (719

Changes in current assets and liabilities:

    

Trade and other accounts receivable

     595       2,098  

Affiliated receivables

     (570     2,250  

Exchange gas due from others

     3,647       2,296  

Materials and supplies

     (183     439  

Other current assets

     (990     (978

Trade accounts payable

     (2,686     (2,465

Affiliated payables

     (749     4,695  

Exchange gas due to others

     (3,647     (2,295

Other accrued liabilities

     1,974       303  

Changes in noncurrent assets and liabilities:

    

Deferred charges

     (3,434     (954

Noncurrent liabilities

     4,193       2,639  
  

 

 

   

 

 

 

Net cash provided by operating activities

     132,297       124,429  
  

 

 

   

 

 

 

FINANCING ACTIVITIES:

    

Capital contributions from parent

     —         2,330  

Distributions paid

     (27,000     (73,000

Other

     (2,194     (1,719
  

 

 

   

 

 

 

Net cash used in financing activities

     (29,194     (72,389
  

 

 

   

 

 

 

INVESTING ACTIVITIES:

    

Property, plant and equipment:

    

Capital expenditures*

     (21,898     (47,147

Proceeds from sales

     1,651       4,748  

Advances to affiliates

     (82,873     (9,438
  

 

 

   

 

 

 

Net cash used in investing activities

     (103,120     (51,837
  

 

 

   

 

 

 

NET (DECREASE) INCREASE IN CASH

     (17     203  

CASH AT BEGINNING OF PERIOD

     117       37  
  

 

 

   

 

 

 

CASH AT END OF PERIOD

   $ 100     $ 240  
  

 

 

   

 

 

 

 

* Increases to property, plant and equipment

   $ (27,471   $ (54,479
   Changes in related accounts payable and accrued liabilities      5,573       7,332  
  

 

 

   

 

 

 
   Capital expenditures    $ (21,898   $ (47,147
  

 

 

   

 

 

 

See accompanying notes.

 

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NORTHWEST PIPELINE GP

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

1. BASIS OF PRESENTATION

In this report, Northwest Pipeline GP (Northwest) is at times referred to in the first person as “we”, “us” or “our.”

On June 30, 2013, Northwest was indirectly owned by Williams Partners L.P. (WPZ), a publicly traded Delaware limited partnership, which is consolidated by The Williams Companies, Inc. (Williams). At June 30, 2013, Williams holds an approximate 68 percent interest in WPZ, comprised of an approximate 66 percent limited partner interest and all of WPZ’s 2 percent general partner interest.

On July 1, 2013, Northwest converted from a Delaware general partnership to a Delaware limited liability company, Northwest Pipeline LLC (Company). Following the conversion, the sole member of the Company, Williams Partners Operating LLC, a Delaware limited liability company, executed a limited liability company operating agreement. In connection with the conversion of the Company to a limited liability company, the Amended and Restated Partnership Agreement of Northwest was terminated.

General

The accompanying interim financial statements do not include all the notes in our annual financial statements, and therefore, should be read in conjunction with the financial statements and notes thereto in our 2012 Annual Report on Form 10-K. The accompanying unaudited financial statements include all adjustments both normal recurring and others which, in the opinion of our management, are necessary to present fairly our interim financial statements.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Certain prior period amounts reported within Total operating expenses in the Statement of Comprehensive Income have been reclassified to conform to the current presentation. For the three and six months ended June 30, 2012, the effect of the correction increased Operation and maintenance costs $0.7 million and $1.2 million, respectively; increased General and administrative expenses $0.1 million and $0.4 million, respectively; and decreased Taxes, other than income taxes $0.8 million and $1.6 million, respectively; with no net impact on Total operating expenses, Operating Income, or Net Income.

2. CONTINGENT LIABILITIES AND COMMITMENTS

Environmental Matters

We are subject to the National Environmental Policy Act and other federal and state legislation regulating the environmental aspects of our business. Except as discussed below, our management believes that we are in substantial compliance with existing environmental requirements. Environmental expenditures are expensed or capitalized depending on their future economic benefit and potential for rate recovery. We believe that, with respect to any expenditures required to meet applicable standards and regulations, the Federal Energy Regulatory Commission (FERC) would grant the requisite rate relief so that substantially all of such expenditures would be permitted to be recovered through rates. We believe that compliance with applicable environmental requirements is not likely to have a material adverse effect upon our financial position or results of operations.

 

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NORTHWEST PIPELINE GP

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

 

Beginning in the mid-1980s, we evaluated many of our facilities for the presence of toxic and hazardous substances to determine to what extent, if any, remediation might be necessary. We identified polychlorinated biphenyl (PCB) contamination in air compressor systems, soils and related properties at certain compressor station sites. Similarly, we identified hydrocarbon impacts at these facilities due to the former use of earthen pits and mercury contamination at certain natural gas metering sites. The PCBs were remediated pursuant to a Consent Decree with the U.S. Environmental Protection Agency (EPA) in the late 1980s, and we conducted a voluntary clean-up of the hydrocarbon and mercury impacts in the early 1990s. In 2005, the Washington Department of Ecology required us to re-evaluate our previous mercury clean-ups in Washington. Currently, we are conducting assessment and remediation activities for mercury and other constituents to bring the sites up to Washington’s current environmental standards. At June 30, 2013, we had accrued liabilities totaling approximately $7.5 million for these costs which are expected to be incurred through 2017. We are conducting environmental assessments and implementing a variety of remedial measures that may result in increases or decreases in the total estimated costs.

In March 2008, the EPA promulgated a new, lower National Ambient Air Quality Standard (NAAQS) for ground-level ozone. However, in September 2009, the EPA announced it would reconsider the 2008 NAAQS for ground-level ozone to ensure that the standards were clearly grounded in science, and were protective of both public health and the environment. As a result, the EPA delayed designation of new eight-hour ozone non-attainment areas under the 2008 standards until the reconsideration was complete. In January 2010, the EPA proposed to further reduce the ground-level ozone NAAQS from the March 2008 levels. In September 2011, the EPA announced that it was proceeding with required actions to implement the 2008 ozone standard and area designations. In May 2012, the EPA completed designation of new eight-hour ozone non-attainment areas. Based on the published designations, no Northwest facilities are located within the non-attainment areas. At this time, it is unknown whether future state regulatory actions associated with implementation of the 2008 ozone standard will impact our operations and increase the cost of additions to property, plant and equipment. Until any additional state regulatory actions are proposed, we are unable to estimate the cost of additions that may be required to meet any such new regulation.

Additionally, in August 2010, the EPA promulgated National Emission Standards for hazardous air pollutants (NESHAP) regulations that will impact our operations. The emission control additions required to comply with the hazardous air pollutant regulations are estimated to include capital costs in the range of $500 thousand to $1 million through 2013, the compliance date.

On January 22, 2010, the EPA set a new one-hour nitrogen dioxide (NO2) NAAQS. The effective date of the new NO2 standard was April 12, 2010. This standard is subject to challenges in federal court. On January 20, 2012, the EPA determined pursuant to available information that no area in the country is violating the 2010 NO2 NAAQS, and thus, designated all areas of the country as “unclassifiable/attainment.” Also, at that time, the EPA noted its plan to deploy an expanded NO2 monitoring network beginning in 2013. However, on October 5, 2012, the EPA proposed a graduated implementation of the monitoring network between January 1, 2014 and January 1, 2017. Once three years of data is collected from the new monitoring network, the EPA will reassess attainment status with the one-hour NO2 NAAQS. Until that time, the EPA or states may require ambient air quality modeling on a case by case basis to demonstrate compliance with the NO2 standard. Because we are unable to predict the outcome of the EPA’s or states’ future assessment using the new monitoring network, we are unable to estimate the cost of additions that may be required to meet this regulation.

Other Matters

Various other proceedings are pending against us and are considered incidental to our operations.

Summary

We estimate that for all matters for which we are able to reasonably estimate a range of loss, including those noted above and others that are not individually significant, our aggregate reasonably possible losses beyond amounts accrued for all of our contingent liabilities are immaterial to our expected

 

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NORTHWEST PIPELINE GP

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

 

future annual results of operations, liquidity and financial position. These calculations have been made without consideration of any potential recovery from third-parties. We have disclosed all significant matters for which we are unable to reasonably estimate a range of possible loss.

3. DEBT AND FINANCING ARRANGEMENT

Credit Facility

Total letter of credit capacity available to WPZ under the $2.4 billion credit facility is $1.3 billion. At June 30, 2013, no letters of credit have been issued and no loans are outstanding under the credit facility. We may borrow up to $400 million under the credit facility to the extent not otherwise utilized by WPZ and Transcontinental Gas Pipe Line Company, LLC (Transco). At June 30, 2013, the full $400 million under the credit facility was available to us.

On July 31, 2013, WPZ amended the $2.4 billion credit facility to increase the aggregate commitments to $2.5 billion and extend the maturity date to July 31, 2018. The amended credit facility may also, under certain conditions, be increased by up to an additional $500 million. We may borrow up to $500 million under the amended credit facility to the extent not otherwise utilized by WPZ and Transco.

WPZ participates in a commercial paper program, and WPZ management considers amounts outstanding under this program to be a reduction of available capacity under the credit facility. At June 30, 2013, WPZ had $710 million in outstanding commercial paper.

4. FINANCIAL INSTRUMENTS

Fair Value of Financial Instruments

The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value:

Cash and advances to affiliate—The carrying amounts approximate fair value because of the short-term nature of these instruments.

Long-term debt—The disclosed fair value of our long-term debt, which we consider as a level 2 measurement, is determined by a market approach using broker quoted indicative period-end bond prices. The quoted prices are based on observable transactions in less active markets for our debt or similar instruments. The carrying amount and estimated fair value of our long-term debt, including current maturities, were $694.1 million and $817.4 million, respectively, at June 30, 2013, and $694.0 million and $840.2 million, respectively, at December 31, 2012.

5. TRANSACTIONS WITH AFFILIATES

We are a participant in WPZ’s cash management program. At June 30, 2013 and December 31, 2012, our advances to WPZ totaled approximately $112.2 million and $29.3 million, respectively. These advances are represented by demand notes and are classified as Current Assets in the accompanying Balance Sheet. The interest rate on these intercompany demand notes is based upon the daily overnight investment rate paid on WPZ’s excess cash at the end of each month, which was approximately 0.01 percent at June 30, 2013. The interest income from these advances was minimal during the six months ended June 30, 2013 and June 30, 2012. Such interest income is included in Other (Income) and Other Expenses – Miscellaneous other (income) expenses, net on the accompanying Statement of Comprehensive Income.

 

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We have no employees. Services necessary to operate our business are provided to us by Williams and certain affiliates of Williams. We reimburse Williams and its affiliates for all direct and indirect expenses incurred or payments made (including salary, bonus, incentive compensation, and benefits) in connection with these services. Employees of Williams also provide general administrative and management services to us, and we are charged for certain administrative expenses incurred by Williams. These charges are either directly identifiable or allocated to our assets. Direct charges are for goods and services provided by Williams at our request. Allocated charges are based on a three-factor formula, which considers revenues; property, plant, and equipment; and payroll. In management’s estimation, the allocation methodologies used are reasonable and result in a reasonable allocation to us of our costs of doing business incurred by Williams. We were billed $27.9 million and $54.3 million in the three and six months ended June 30, 2013, respectively, and $28.8 million and $55.0 million in the three and six months ended June 30, 2012, respectively, for these services. Such expenses are primarily included in General and administrative and Operation and maintenance expenses on the accompanying Statement of Comprehensive Income.

During the six months ended June 30, 2013 and 2012, we declared and paid equity distributions to our parent of $27.0 million and $73.0 million, respectively. During July 2013, we declared and paid equity distributions of $35.0 million to our parent.

During the six months ended June 30, 2012, we received contributions of $2.3 million from our parent to fund a portion of our expansion related expenditures for additions to property, plant, and equipment. No contributions were received from our parent during the six months ended June 30, 2013. In July 2013, our parent authorized an additional $1.9 million capital contribution to us to fund a portion of our expenditures for additions to property, plant and equipment.

We have entered into various other transactions with certain related parties, the amounts of which were not significant. These transactions and the above-described transactions are made on the basis of commercial relationships and prevailing market prices or general industry practices.

 

8


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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

GENERAL

The following discussion should be read in conjunction with the Financial Statements, Notes, and Management’s Discussion and Analysis contained in Items 7 and 8 of our 2012 Annual Report on Form 10-K and with the Financial Statements and Notes contained in this Form 10-Q.

RESULTS OF OPERATIONS

ANALYSIS OF FINANCIAL RESULTS

This analysis discusses financial results of our operations for the six-month periods ended June 30, 2013 and 2012. Variances due to changes in natural gas prices and transportation volumes have little impact on revenues, because under our rate design methodology, the majority of overall cost of service is recovered through firm capacity reservation charges in our transportation rates.

Our operating revenues increased $14.9 million, or 7 percent, as compared to the first six months of 2012. This increase is primarily attributed to new rates, which became effective January 1, 2013.

Transportation service and gas storage service accounted for 98 percent and 2 percent, respectively, of our operating revenues for the period ended June 30, 2013, and 97 percent and 3 percent, respectively, of our operating revenues for the period ended June 30, 2012.

Operating expenses decreased $1.0 million, or 1 percent, due primarily to lower employee incentive compensation expense of $2.2 million and lower labor costs of $1.0 million, partially offset by higher depreciation of $1.2 million, primarily attributed to property additions.

The increase in our net income for the first six months of 2013, as compared to the comparable period in 2012, is primarily due to the increase in operating revenues associated with our new rates.

CAPITAL EXPENDITURES

Our capital expenditures were $21.9 million and $47.1 million for the six months ended June 30, 2013 and 2012, respectively. Our capital expenditures estimate for 2013 is discussed in our 2012 Annual Report on Form 10-K. This estimate includes the following new capital project proposed by us:

South Seattle Lateral Delivery Expansion

We have executed an agreement with Puget Sound Energy to expand the South Seattle Lateral to provide an additional 64 MDth per day of capacity. The project is on schedule for a November 2013 in-service date, and is estimated to cost between $19 million and $21 million.

 

9


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Item 4. Controls and Procedures

Our management, including our Senior Vice President—West and our Vice President and Chief Accounting Officer, does not expect that our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act) (Disclosure Controls) or our internal controls over financial reporting (Internal Controls) will prevent all errors and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within Northwest have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the control. The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected. We monitor our Disclosure Controls and Internal Controls and make modifications as necessary; our intent in this regard is that the Disclosure Controls and Internal Controls will be modified as systems change and conditions warrant.

Evaluation of Disclosure Controls and Procedures

An evaluation of the effectiveness of the design and operation of our Disclosure Controls was performed as of the end of the period covered by this report. This evaluation was performed under the supervision and with the participation of our management, including our Senior Vice President—West and our Vice President and Chief Accounting Officer. Based upon that evaluation, our Senior Vice President—West and our Vice President and Chief Accounting Officer concluded that these Disclosure Controls are effective at a reasonable assurance level.

Second-Quarter 2013 Changes in Internal Controls

There have been no changes during the second quarter of 2013 that have materially affected, or are reasonably likely to materially affect, our Internal Controls.

 

10


Table of Contents

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

The information called for by this item is provided in Note 2. Contingent Liabilities and Commitments, included in the Notes to Financial Statements included under Part 1, Item 1. Financial Statements of this Form 10-Q, which information is incorporated by reference into this item.

Item 5. Other Information

Entry Into a Material Definitive Agreement & Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

First Amended & Restated Credit Agreement

On July 31, 2013, Williams Partners L.P. (WPZ), Northwest Pipeline LLC (Northwest) and Transcontinental Gas Pipe Line Company, LLC (Transco and, together with WPZ and Northwest, collectively the “Borrowers”) entered into a First Amended & Restated Credit Agreement (the “Restated Credit Agreement”), with Citibank, N.A. (Citi), as administrative agent, and the lenders named therein. The Restated Credit Agreement amends and restates that certain Credit Agreement, dated as of June 3, 2011 (as amended prior to July 31, 2013, the “Existing Credit Agreement”), among the Borrowers, Citi, as administrative agent and the lenders named therein. Capitalized terms used in this Item 5 and not otherwise defined herein have the meaning given to them in the Restated Credit Agreement.

The Restated Credit Agreement increases the Aggregate Commitments available to the Borrowers by $100 million (the “Incremental Commitments”) and extends the Maturity Date to July 31, 2018. Additionally, the Restated Credit Agreement lowers, in certain cases, the applicable margin and commitment fees payable by each Borrower based on such Borrower’s senior unsecured debt ratings. The Incremental Commitments are increased Commitments from lenders named in the Existing Credit Agreement as well as a new Commitment from an institution party to the Restated Credit Agreement. After giving effect to the Restated Credit Amendment, the Borrowers may borrow, in the aggregate, up to $2.5 billion under the Restated Credit Agreement. Northwest and Transco are each subject to a $500 million borrowing sublimit. In addition, WPZ may request an increase of up to an additional $500 million in Commitments from either new lenders or increased Commitments from existing lenders named in the Restated Credit Agreement. However, at no time may the Aggregate Commitments under the Restated Credit Agreement exceed $3.0 billion.

The foregoing description of the Restated Credit Amendment does not purport to be complete and is qualified in its entirety by reference to the Restated Credit Amendment, a copy of which has been filed as Exhibit 10 to WPZ’s Quarterly Report on Form 10-Q, filed on July 31, 2013 (File No. 001-32599) and incorporated into this Item 5 by reference.

 

11


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ITEM 6. EXHIBITS

The following instruments are included as exhibits to this report.

 

Exhibit

 

Description

3(a)   Certificate of Conversion of Northwest Pipeline GP (Exhibit 2.1 to our report on Form 8-K, filed July 3, 2013 (File No. 001-07414)) and incorporated herein by reference.
3(b)   Certificate of Formation of Northwest Pipeline LLC (Exhibit 2.2 to our report on Form 8-K, filed July 3, 2013 (File No. 001-07414)) and incorporated herein by reference.
3(c)   Operating Agreement of Northwest Pipeline LLC (Exhibit 3.1 to our report on Form 8-K, filed July 3, 2013 (File No. 001-07414)) and incorporated herein by reference.
10(a)   First Amended & Restated Credit Agreement, dated as of July 31, 2013, by and among Williams Partners L.P., Northwest Pipeline LLC, and Transcontinental Gas Pipe Line Company, LLC, as co-borrowers, the lenders named therein, and Citibank N.A., as Administrative Agent (filed on July 31, 2013 as Exhibit 10 to Williams Partners L.P.’s Quarterly Report on Form 10-Q (File No. 001-32599)) and incorporated herein by reference.
31(a)*   Certification of Principal Executive Officer pursuant to Rules 13a-14(a) and 15d-14(a) promulgated under the Securities Exchange Act of 1934, as amended and Item 601(b)(31) of Regulation S-K, as adopted pursuant to Section 302 of The Sarbanes-Oxley Act of 2002.
31(b)*   Certification of Principal Financial Officer pursuant to Rules 13a-14(a) and 15d-14(a) promulgated under the Securities Exchange Act of 1934, as amended, and Item 601(b)(31) of Regulation S-K, as adopted pursuant to Section 302 of The Sarbanes-Oxley Act of 2002.
32(a)**   Certification of Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS**   XBRL Instance Document.
101.SCH**   XBRL Taxonomy Extension Schema.
101.CAL**   XBRL Taxonomy Extension Calculation Linkbase.

 

12


Table of Contents
101.DEF**   XBRL Taxonomy Definition Linkbase.
101.LAB**   XBRL Taxonomy Extension Label Linkbase.
101.PRE**   XBRL Taxonomy Extension Presentation Linkbase.

 

* Filed herewith.
** Furnished herewith.

 

13


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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  NORTHWEST PIPELINE LLC
  Registrant
By:   /s/ Jeffrey P. Heinrichs
 

Jeffrey P. Heinrichs

Controller

(Duly Authorized Officer and

Principal Accounting Officer)

Date: July 31, 2013


Table of Contents

EXHIBIT INDEX

 

Exhibit

 

Description

3(a)   Certificate of Conversion of Northwest Pipeline GP (Exhibit 2.1 to our report on Form 8-K, filed July 3, 2013 (File No. 001-07414)) and incorporated herein by reference.
3(b)   Certificate of Formation of Northwest Pipeline LLC (Exhibit 2.2 to our report on Form 8-K, filed July 3, 2013 (File No. 001-07414)) and incorporated herein by reference.
3(c)   Operating Agreement of Northwest Pipeline LLC (Exhibit 3.1 to our report on Form 8-K, filed July 3, 2013 (File No. 001-07414)) and incorporated herein by reference.
10(a)   First Amended & Restated Credit Agreement, dated as of July 31, 2013, by and among Williams Partners L.P., Northwest Pipeline LLC, and Transcontinental Gas Pipe Line Company, LLC, as co-borrowers, the lenders named therein, and Citibank N.A., as Administrative Agent (filed on July 31, 2013 as Exhibit 10 to Williams Partners L.P.’s Quarterly Report on Form 10-Q (File No. 001-32599)) and incorporated herein by reference.
31(a)*   Certification of Principal Executive Officer pursuant to Rules 13a-14(a) and 15d-14(a) promulgated under the Securities Exchange Act of 1934, as amended and Item 601(b)(31) of Regulation S-K, as adopted pursuant to Section 302 of The Sarbanes-Oxley Act of 2002.
31(b)*   Certification of Principal Financial Officer pursuant to Rules 13a-14(a) and 15d-14(a) promulgated under the Securities Exchange Act of 1934, as amended, and Item 601(b)(31) of Regulation S-K, as adopted pursuant to Section 302 of The Sarbanes-Oxley Act of 2002.
32(a)**   Certification of Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS**   XBRL Instance Document.
101.SCH**   XBRL Taxonomy Extension Schema.
101.CAL**   XBRL Taxonomy Extension Calculation Linkbase.
101.DEF**   XBRL Taxonomy Definition Linkbase.


Table of Contents
101.LAB**   XBRL Taxonomy Extension Label Linkbase.
101.PRE**   XBRL Taxonomy Extension Presentation Linkbase.

 

* Filed herewith.
** Furnished herewith.
EX-31.A 2 d576183dex31a.htm EX-31.A EX-31.A

Exhibit 31(a)

SECTION 302 CERTIFICATION

I, Allison G. Bridges, certify that:

 

1. I have reviewed this Quarterly Report on Form 10-Q of Northwest Pipeline LLC;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

  (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

  (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

  (c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

  (d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

  (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

  (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: July 31, 2013

 

By:   /s/ Allison G. Bridges
 

Allison G. Bridges

Sr. Vice President—West

(Principal Executive Officer)

EX-31.B 3 d576183dex31b.htm EX-31.B EX-31.B

Exhibit 31(b)

SECTION 302 CERTIFICATION

I, Ted T. Timmermans, certify that:

 

1. I have reviewed this Quarterly Report on Form 10-Q of Northwest Pipeline LLC;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

  (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

  (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

  (c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

  (d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

  (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

  (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: July 31, 2013

 

By:   /s/ Ted T. Timmermans
 

Ted T. Timmermans

Vice President and Chief Accounting Officer

(Principal Financial Officer)

EX-32.A 4 d576183dex32a.htm EX-32.A EX-32.A

Exhibit 32(a)

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Northwest Pipeline LLC (the “Company”) on Form 10-Q for the period ending June 30, 2013 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned hereby certifies, in his capacity as an officer of the Company, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that to his knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

/s/ Allison G. Bridges

Allison G. Bridges

Senior Vice President—West

July 31, 2013

 

/s/ Ted T. Timmermans

Ted T. Timmermans

Vice President and Chief Accounting Officer

July 31, 2013

A signed original of this written statement required by Section 906 has been provided to, and will be retained by, the Company and furnished to the Securities and Exchange Commission or its staff upon request.

The foregoing certification is being furnished to the Securities and Exchange Commission as an exhibit to the Report and shall not be considered filed as part of the Report.

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margin-bottom:0pt'>&#160;</p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Arial;font-size:10pt;margin-left:0px;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font><font style="font-family:Arial;font-size:10pt;">In this report, Northwest </font><font style="font-family:Arial;font-size:10pt;">Pipeline GP (Northwest) </font><font style="font-family:Arial;font-size:10pt;">is at times referred to in the first person as &#8220;we&#8221;, &#8220;us&#8221; or &#8220;our.&#8221;</font></p><p style='margin-top:0pt; margin-bottom:0pt'>&#160;</p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Arial;font-size:10pt;margin-left:0px;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font><font style="font-family:Arial;font-size:10pt;">On June 30, 2013, </font><font style="font-family:Arial;font-size:10pt;">Northwest </font><font style="font-family:Arial;font-size:10pt;">was</font><font style="font-family:Arial;font-size:10pt;"> indirectly owned</font><font style="font-family:Arial;font-size:10pt;"> by Williams Partners L.P. (WPZ), a publicly traded Delaware limited partnership, which is consolidated by The Will</font><font style="font-family:Arial;font-size:10pt;">iams Companies, Inc. (Williams). </font><font style="font-family:Arial;font-size:10pt;">At</font><font style="font-family:Arial;font-size:10pt;"> </font><font style="font-family:Arial;font-size:10pt;">June 30,</font><font style="font-family:Arial;font-size:10pt;"> 2013</font><font style="font-family:Arial;font-size:10pt;">,</font><font style="font-family:Arial;font-size:10pt;"> Williams holds</font><font style="font-family:Arial;font-size:10pt;"> an approximate </font><font style="font-family:Arial;font-size:10pt;">68</font><font style="font-family:Arial;font-size:10pt;"> percent interest in WPZ</font><font style="font-family:Arial;font-size:10pt;">, comprised of an approximate </font><font style="font-family:Arial;font-size:10pt;">66</font><font style="font-family:Arial;font-size:10pt;"> percent limited partner interest and all of WPZ's </font><font style="font-family:Arial;font-size:10pt;">2</font><font style="font-family:Arial;font-size:10pt;"> percent general partner interest.</font><font style="font-family:Arial;font-size:10pt;"> </font></p><p style='margin-top:0pt; margin-bottom:0pt'>&#160;</p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Arial;font-size:10pt;margin-left:0px;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;On July 1, 2013, </font><font style="font-family:Arial;font-size:10pt;">Northwest</font><font style="font-family:Arial;font-size:10pt;"> converted from a Delaware general partnership to a Delaware limited liability company, Northwest Pipeline LLC (Company). Following the conversion, the sole member of the Company, Williams Partners Operating LLC</font><font style="font-family:Arial;font-size:10pt;">,</font><font style="font-family:Arial;font-size:10pt;"> a Delaware limited liability company, executed a limited liability company operating agreement.</font><font style="font-family:Arial;font-size:10pt;"> In connection with the conversion of the Company to a limited liability company, the Amended and Restated Partnership Agreement of Northwest was terminated.</font></p><p style='margin-top:0pt; margin-bottom:0pt'>&#160;</p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Arial;font-size:10pt;font-weight:bold;margin-left:0px;">General </font></p><p style='margin-top:0pt; margin-bottom:0pt'>&#160;</p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Arial;font-size:10pt;margin-left:0px;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;The accompanying interim financial statements do not include all the notes in our annual financial statements, and therefore, should be read in conjunction with the financial statements and notes thereto in our </font><font style="font-family:Arial;font-size:10pt;">2012</font><font style="font-family:Arial;font-size:10pt;"> Annual Report on Form 10-K. The accompanying unaudited financial statements include all adjustments both normal recurring and others which, in the opinion of our management, are necessary to present fairly our </font><font style="font-family:Arial;font-size:10pt;">interim financial statements</font><font style="font-family:Arial;font-size:10pt;">. </font></p><p style='margin-top:0pt; margin-bottom:0pt'>&#160;</p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Arial;font-size:10pt;margin-left:18px;">The preparation of financial statements in conformity with accounting principles generally accepted in the </font><font style="font-family:Arial;font-size:10pt;">United States</font><font style="font-family:Arial;font-size:10pt;"> requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. 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We believe that, with respect to any expenditures required to meet applicable standards and regulations, the </font><font style="font-family:Arial;font-size:10pt;">Federal Energy Regulatory Commission (</font><font style="font-family:Arial;font-size:10pt;">FERC</font><font style="font-family:Arial;font-size:10pt;">)</font><font style="font-family:Arial;font-size:10pt;"> would grant the requisite rate relief so that substantially all of such expenditures would be permitted to be recovered through rates. We believe that compliance with applicable environmental requirements is not likely to have a material adverse effect upon our financial position or results of operations.</font></p><p style='margin-top:0pt; margin-bottom:0pt'>&#160;</p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Arial;font-size:10pt;margin-left:18px;">Beginning in the mid-1980s, we evaluated many of our facilities for the presence of toxic and hazardous substances to determine to what extent, if any, remediation might be necessary. We identified polychlorinated biphenyl (PCB) contamination in air compressor systems, soils and related properties at certain compressor station sites. Similarly, we identified hydrocarbon impacts at these facilities due to the former use of earthen pits and mercury contamination at certain natural gas metering sites. The PCBs were remediated pursuant to a Consent Decree with the U.S.&#160;Environmental Protection Agency (EPA) in the late 1980s, and we conducted a voluntary clean-up of the hydrocarbon and mercury impacts in the early 1990s. In 2005, the Washington Department of Ecology required us to re-evaluate our previous mercury clean-ups in Washington. Currently, we are conducting assessment and remediation activities for mercury and other constituents to bring the sites up to Washington's current environmental standards. At </font><font style="font-family:Arial;font-size:10pt;">June 30</font><font style="font-family:Arial;font-size:10pt;">, 2013, we had accrued liabilities totaling approximately $</font><font style="font-family:Arial;font-size:10pt;">7.5</font><font style="font-family:Arial;font-size:10pt;"> million for these costs which are expected to be incurred through 2017. 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Because we are unable to predict the outcome of the EPA's or states' future assessment using the new monitoring network, we are unable to estimate the cost of additions that may be required to meet this regulation.</font></p><p style='margin-top:0pt; margin-bottom:0pt'>&#160;</p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Arial;font-size:10pt;font-weight:bold;margin-left:0px;">Other Matters</font></p><p style='margin-top:0pt; margin-bottom:0pt'>&#160;</p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Arial;font-size:10pt;margin-left:18px;">Various other proceedings are pending against us and are considered incidental to our operations.</font></p><p style='margin-top:0pt; margin-bottom:0pt'>&#160;</p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Arial;font-size:10pt;font-weight:bold;margin-left:0px;">Summary</font></p><p style='margin-top:0pt; margin-bottom:0pt'>&#160;</p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Arial;font-size:10pt;margin-left:18px;">We estimate that for all matters for which we are able to reasonably estimate a range of loss, including those noted above and others that are not individually significant, our aggregate reasonably possible losses beyond amounts accrued for all of our contingent liabilities are immaterial to our expected future annual results of operations, liquidity and financial position.&#160; These calculations have been made without consideration of any potential recovery from third-parties.&#160; We have disclosed all significant matters for which we are unable to reasonably estimate a range of possible loss. </font></p> 7500000 1000000 500000 <div style="text-align:center;"><font style="font-family:Arial;font-size:10pt;font-weight:bold;margin-left:0px;">3</font><font style="font-family:Arial;font-size:10pt;font-weight:bold;">. </font><font style="font-family:Arial;font-size:10pt;font-weight:bold;"> </font><font style="font-family:Arial;font-size:10pt;font-weight:bold;">DEBT AND FINANCING ARRANGEMENT</font></div><div style="text-align:center;">&#160;</div><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Arial;font-size:10pt;font-weight:bold;margin-left:0px;">Credit Facility</font></p><p style='margin-top:0pt; margin-bottom:0pt'>&#160;</p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Arial;font-size:10pt;margin-left:0px;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font><font style="font-family:Arial;font-size:10pt;">Total l</font><font style="font-family:Arial;font-size:10pt;">etter of credit capacity </font><font style="font-family:Arial;font-size:10pt;">available to WPZ </font><font style="font-family:Arial;font-size:10pt;">under </font><font style="font-family:Arial;font-size:10pt;">the</font><font style="font-family:Arial;font-size:10pt;"> </font><font style="font-family:Arial;font-size:10pt;">$2.4</font><font style="font-family:Arial;font-size:10pt;"> billion credit </font><font style="font-family:Arial;font-size:10pt;">facility</font><font style="font-family:Arial;font-size:10pt;"> is $</font><font style="font-family:Arial;font-size:10pt;">1</font><font style="font-family:Arial;font-size:10pt;">.</font><font style="font-family:Arial;font-size:10pt;">3</font><font style="font-family:Arial;font-size:10pt;"> billion. 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At </font><font style="font-family:Arial;font-size:10pt;">June 30,</font><font style="font-family:Arial;font-size:10pt;"> </font><font style="font-family:Arial;font-size:10pt;">2013</font><font style="font-family:Arial;font-size:10pt;"> and </font><font style="font-family:Arial;font-size:10pt;">December 31,</font><font style="font-family:Arial;font-size:10pt;"> 2012</font><font style="font-family:Arial;font-size:10pt;">, </font><font style="font-family:Arial;font-size:10pt;">our </font><font style="font-family:Arial;font-size:10pt;">advances to</font><font style="font-family:Arial;font-size:10pt;"> </font><font style="font-family:Arial;font-size:10pt;">WPZ totaled </font><font style="font-family:Arial;font-size:10pt;">approximately </font><font style="font-family:Arial;font-size:10pt;">$</font><font style="font-family:Arial;font-size:10pt;">112.2</font><font style="font-family:Arial;font-size:10pt;"> million</font><font style="font-family:Arial;font-size:10pt;"> and $</font><font style="font-family:Arial;font-size:10pt;">29.3 </font><font style="font-family:Arial;font-size:10pt;">million, respectively</font><font style="font-family:Arial;font-size:10pt;">. These advances are represented by demand notes</font><font style="font-family:Arial;font-size:10pt;"> and are classified as Current Assets in the accompanying Balance Sheet</font><font style="font-family:Arial;font-size:10pt;">. The interest rate on these intercompany demand notes is based upon the </font><font style="font-family:Arial;font-size:10pt;">daily </font><font style="font-family:Arial;font-size:10pt;">overnight investment rate paid on WPZ's excess cash</font><font style="font-family:Arial;font-size:10pt;"> at the end of each month, which was approximately </font><font style="font-family:Arial;font-size:10pt;">0.01</font><font style="font-family:Arial;font-size:10pt;"> percent at </font><font style="font-family:Arial;font-size:10pt;">June 30,</font><font style="font-family:Arial;font-size:10pt;"> </font><font style="font-family:Arial;font-size:10pt;">2013</font><font style="font-family:Arial;font-size:10pt;">. </font><font style="font-family:Arial;font-size:10pt;">The interest income from these advances was minimal during the </font><font style="font-family:Arial;font-size:10pt;">six</font><font style="font-family:Arial;font-size:10pt;"> months ended </font><font style="font-family:Arial;font-size:10pt;">June 30,</font><font style="font-family:Arial;font-size:10pt;"> </font><font style="font-family:Arial;font-size:10pt;">2013</font><font style="font-family:Arial;font-size:10pt;"> </font><font style="font-family:Arial;font-size:10pt;">and June 30,</font><font style="font-family:Arial;font-size:10pt;"> 2012</font><font style="font-family:Arial;font-size:10pt;">.</font><font style="font-family:Arial;font-size:10pt;"> Such interest income is included in </font><font style="font-family:Arial;font-size:10pt;font-style:italic;">Other (Income) and Other </font><font style="font-family:Arial;font-size:10pt;font-style:italic;">Expenses</font><font style="font-family:Arial;font-size:10pt;"> </font><font style="font-family:Arial;font-size:10pt;font-style:italic;">&#8211; Miscellaneous other (income) </font><font style="font-family:Arial;font-size:10pt;font-style:italic;">expenses</font><font style="font-family:Arial;font-size:10pt;font-style:italic;">, net</font><font style="font-family:Arial;font-size:10pt;"> on the accompanying Statement of </font><font style="font-family:Arial;font-size:10pt;">Comprehensive </font><font style="font-family:Arial;font-size:10pt;">Income.</font></p><p style='margin-top:0pt; margin-bottom:10pt'><font style="font-family:Arial;font-size:10pt;margin-left:18px;">We have</font><font style="font-family:Arial;font-size:10pt;"> no employees. Services </font><font style="font-family:Arial;font-size:10pt;">necessary to operate our business </font><font style="font-family:Arial;font-size:10pt;">are provided to us by </font><font style="font-family:Arial;font-size:10pt;">Williams and certain affiliates of Williams</font><font style="font-family:Arial;font-size:10pt;">. </font><font style="font-family:Arial;font-size:10pt;">W</font><font style="font-family:Arial;font-size:10pt;">e reimburse </font><font style="font-family:Arial;font-size:10pt;">Williams</font><font style="font-family:Arial;font-size:10pt;"> and its affiliates</font><font style="font-family:Arial;font-size:10pt;"> for all direct and indirect expenses incur</font><font style="font-family:Arial;font-size:10pt;">red</font><font style="font-family:Arial;font-size:10pt;"> or payments ma</font><font style="font-family:Arial;font-size:10pt;">d</font><font style="font-family:Arial;font-size:10pt;">e (including salary, bonus, incentive compensation, and benefits) in connection with these services. </font><font style="font-family:Arial;font-size:10pt;">Employees of Williams also provide general administrative and management services to us, and we are charged for certain administrative expenses incurred by Williams. These charges are either directly identifiable or allocated to our assets. Direct charges are for goods and services provided by Williams at our request. </font><font style="font-family:Arial;font-size:10pt;">Allocated charges are based on a three-factor formula, which considers revenues; property, plant, and equipment; and payroll. In management's estimation, the allocation methodologies used are reasonable and result in a reasonable allocation to us of our costs of doing business incurred by Williams. </font><font style="font-family:Arial;font-size:10pt;">W</font><font style="font-family:Arial;font-size:10pt;">e were billed </font><font style="font-family:Arial;font-size:10pt;">$27.9 million and </font><font style="font-family:Arial;font-size:10pt;">$</font><font style="font-family:Arial;font-size:10pt;">54.3</font><font style="font-family:Arial;font-size:10pt;"> million</font><font style="font-family:Arial;font-size:10pt;"> in the three and six</font><font style="font-family:Arial;font-size:10pt;"> months ended June 30,</font><font style="font-family:Arial;font-size:10pt;"> 2013</font><font style="font-family:Arial;font-size:10pt;">, respectively,</font><font style="font-family:Arial;font-size:10pt;"> and </font><font style="font-family:Arial;font-size:10pt;">$28.8 million and $55.0 million in the three and six</font><font style="font-family:Arial;font-size:10pt;"> months ended June 30,</font><font style="font-family:Arial;font-size:10pt;"> </font><font style="font-family:Arial;font-size:10pt;">2012</font><font style="font-family:Arial;font-size:10pt;">, respectively</font><font style="font-family:Arial;font-size:10pt;">, for these services</font><font style="font-family:Arial;font-size:10pt;">. 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We believe that, with respect to any expenditures required to meet applicable standards and regulations, the </font><font style="font-family:Arial;font-size:10pt;">Federal Energy Regulatory Commission (</font><font style="font-family:Arial;font-size:10pt;">FERC</font><font style="font-family:Arial;font-size:10pt;">)</font><font style="font-family:Arial;font-size:10pt;"> would grant the requisite rate relief so that substantially all of such expenditures would be permitted to be recovered through rates. We believe that compliance with applicable environmental requirements is not likely to have a material adverse effect upon our financial position or results of operations.</font></p><p style='margin-top:0pt; margin-bottom:0pt'>&#160;</p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Arial;font-size:10pt;margin-left:18px;">Beginning in the mid-1980s, we evaluated many of our facilities for the presence of toxic and hazardous substances to determine to what extent, if any, remediation might be necessary. We identified polychlorinated biphenyl (PCB) contamination in air compressor systems, soils and related properties at certain compressor station sites. Similarly, we identified hydrocarbon impacts at these facilities due to the former use of earthen pits and mercury contamination at certain natural gas metering sites. The PCBs were remediated pursuant to a Consent Decree with the U.S.&#160;Environmental Protection Agency (EPA) in the late 1980s, and we conducted a voluntary clean-up of the hydrocarbon and mercury impacts in the early 1990s. In 2005, the Washington Department of Ecology required us to re-evaluate our previous mercury clean-ups in Washington. Currently, we are conducting assessment and remediation activities for mercury and other constituents to bring the sites up to Washington's current environmental standards. At </font><font style="font-family:Arial;font-size:10pt;">June 30</font><font style="font-family:Arial;font-size:10pt;">, 2013, we had accrued liabilities totaling approximately $</font><font style="font-family:Arial;font-size:10pt;">7.5</font><font style="font-family:Arial;font-size:10pt;"> million for these costs which are expected to be incurred through 2017. We are conducting environmental assessments and implementing a variety of remedial measures that may result in increases or decreases in the total estimated costs. </font></p><div style="text-align:right;">&#160;</div><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Arial;font-size:10pt;margin-left:18px;">In March 2008, the EPA promulgated a new, lower National Ambient Air Quality Standard (NAAQS) for ground-level ozone. However, in September 2009, the EPA announced it would reconsider the 2008 NAAQS for ground-level ozone to ensure that the standards were clearly grounded in science, and were protective of both public health and the environment. As a result, the EPA delayed designation of new eight-hour ozone non-attainment areas under the 2008 standards until the reconsideration </font><font style="font-family:Arial;font-size:10pt;">wa</font><font style="font-family:Arial;font-size:10pt;">s complete. In January 2010, the EPA proposed to further reduce the ground-level ozone NAAQS from the March 2008 levels. In September 2011, the EPA announced that it was proceeding with required actions to implement the 2008 ozone standard and area designations. In May 2012, the EPA completed designation of new eight-hour ozone non-attainment areas. Based on the published designations, no Northwest facilities are located within the non-attainment areas. At this time, it is unknown whether future state regulatory actions associated with implementation of the 2008 ozone standard will impact our operations and increase the cost of additions to property, plant and equipment. Until any additional state regulatory actions are proposed, we are unable to estimate the cost of additions that may be required to meet any such new regulation.</font></p><p style='margin-top:0pt; margin-bottom:0pt'>&#160;</p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Arial;font-size:10pt;margin-left:18px;">Additionally, in August 2010, the EPA promulgated National Emission Standards for hazardous air pollutants (NESHAP) regulations that will impact our operations. The emission control additions required to comply with the hazardous air pollutant regulations are estimated to include capital costs in the range of $500 thousand to $1 million through 2013, the compliance date. </font></p><p style='margin-top:0pt; margin-bottom:0pt'>&#160;</p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Arial;font-size:10pt;margin-left:18px;">On January 22, 2010, the EPA set a new one-hour nitrogen dioxide (NO</font><font style="font-family:Arial;font-size:10pt;">2</font><font style="font-family:Arial;font-size:10pt;">) NAAQS. The effective date of the new NO</font><font style="font-family:Arial;font-size:10pt;">2</font><font style="font-family:Arial;font-size:10pt;"> standard was April 12, 2010. This standard is subject to challenges in federal court. On January 20, 2012, the EPA determined pursuant to available information that no area in the country is violating the 2010 NO</font><font style="font-family:Arial;font-size:10pt;">2</font><font style="font-family:Arial;font-size:10pt;"> NAAQS, and thus, designated all areas of the country as &#8220;unclassifiable/attainment.&#8221; Also, at that time, the EPA noted its plan to deploy an expanded NO</font><font style="font-family:Arial;font-size:10pt;">2</font><font style="font-family:Arial;font-size:10pt;"> monitoring network beginning in 2013. However, on October 5, 2012, the EPA proposed a graduated implementation of the monitoring network between January 1, 2014 and January 1, 2017. Once three years of data is collected from the new monitoring network, the EPA will reassess attainment status with </font><font style="font-family:Arial;font-size:10pt;">the one-hour NO</font><font style="font-family:Arial;font-size:10pt;">2</font><font style="font-family:Arial;font-size:10pt;"> NAAQS. Until that time, the EPA or states may require ambient air quality modeling on a case by case basis to demonstrate compliance with the NO</font><font style="font-family:Arial;font-size:10pt;">2</font><font style="font-family:Arial;font-size:10pt;"> standard. 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Balance Sheet (Unaudited) (Parenthetical) (USD $)
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Dec. 31, 2012
ASSETS    
Reserves, materials and supplies $ 28 $ 81
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Financial Instruments
6 Months Ended
Jun. 30, 2013
Financial Instruments [Abstract]  
FINANCIAL INSTRUMENTS
4. FINANCIAL INSTRUMENTS

 

Fair Value of Financial Instruments

 

The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value:

 

Cash and advances to affiliate - The carrying amounts approximate fair value because of the short-term nature of these instruments.

 

Long-term debt - The disclosed fair value of our long-term debt, which we consider as a level 2 measurement, is determined by a market approach using broker quoted indicative period-end bond prices. The quoted prices are based on observable transactions in less active markets for our debt or similar instruments. The carrying amount and estimated fair value of our long-term debt, including current maturities, were $694.1 million and $817.4 million, respectively, at June 30, 2013, and $694.0 million and $840.2 million, respectively, at December 31, 2012.

 

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Statement of Cash Flows (Unaudited) (Parenthetical) (USD $)
In Thousands, unless otherwise specified
6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Statement of Cash Flows [Abstract]    
Increases to property, plant and equipment $ (27,471) $ (54,479)
Changes in related accounts payable and accrued liabilities 5,573 7,332
Capital expenditures $ (21,898) $ (47,147)
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Contingent Liabilities and Commitments
6 Months Ended
Jun. 30, 2013
Contingent Liabilities and Commitments [Abstract]  
CONTINGENT LIABILITIES AND COMMITMENTS
2. CONTINGENT LIABILITIES AND COMMITMENTS

 

Environmental Matters

 

We are subject to the National Environmental Policy Act and other federal and state legislation regulating the environmental aspects of our business. Except as discussed below, our management believes that we are in substantial compliance with existing environmental requirements. Environmental expenditures are expensed or capitalized depending on their future economic benefit and potential for rate recovery. We believe that, with respect to any expenditures required to meet applicable standards and regulations, the Federal Energy Regulatory Commission (FERC) would grant the requisite rate relief so that substantially all of such expenditures would be permitted to be recovered through rates. We believe that compliance with applicable environmental requirements is not likely to have a material adverse effect upon our financial position or results of operations.

 

Beginning in the mid-1980s, we evaluated many of our facilities for the presence of toxic and hazardous substances to determine to what extent, if any, remediation might be necessary. We identified polychlorinated biphenyl (PCB) contamination in air compressor systems, soils and related properties at certain compressor station sites. Similarly, we identified hydrocarbon impacts at these facilities due to the former use of earthen pits and mercury contamination at certain natural gas metering sites. The PCBs were remediated pursuant to a Consent Decree with the U.S. Environmental Protection Agency (EPA) in the late 1980s, and we conducted a voluntary clean-up of the hydrocarbon and mercury impacts in the early 1990s. In 2005, the Washington Department of Ecology required us to re-evaluate our previous mercury clean-ups in Washington. Currently, we are conducting assessment and remediation activities for mercury and other constituents to bring the sites up to Washington's current environmental standards. At June 30, 2013, we had accrued liabilities totaling approximately $7.5 million for these costs which are expected to be incurred through 2017. We are conducting environmental assessments and implementing a variety of remedial measures that may result in increases or decreases in the total estimated costs.

 

In March 2008, the EPA promulgated a new, lower National Ambient Air Quality Standard (NAAQS) for ground-level ozone. However, in September 2009, the EPA announced it would reconsider the 2008 NAAQS for ground-level ozone to ensure that the standards were clearly grounded in science, and were protective of both public health and the environment. As a result, the EPA delayed designation of new eight-hour ozone non-attainment areas under the 2008 standards until the reconsideration was complete. In January 2010, the EPA proposed to further reduce the ground-level ozone NAAQS from the March 2008 levels. In September 2011, the EPA announced that it was proceeding with required actions to implement the 2008 ozone standard and area designations. In May 2012, the EPA completed designation of new eight-hour ozone non-attainment areas. Based on the published designations, no Northwest facilities are located within the non-attainment areas. At this time, it is unknown whether future state regulatory actions associated with implementation of the 2008 ozone standard will impact our operations and increase the cost of additions to property, plant and equipment. Until any additional state regulatory actions are proposed, we are unable to estimate the cost of additions that may be required to meet any such new regulation.

 

Additionally, in August 2010, the EPA promulgated National Emission Standards for hazardous air pollutants (NESHAP) regulations that will impact our operations. The emission control additions required to comply with the hazardous air pollutant regulations are estimated to include capital costs in the range of $500 thousand to $1 million through 2013, the compliance date.

 

On January 22, 2010, the EPA set a new one-hour nitrogen dioxide (NO2) NAAQS. The effective date of the new NO2 standard was April 12, 2010. This standard is subject to challenges in federal court. On January 20, 2012, the EPA determined pursuant to available information that no area in the country is violating the 2010 NO2 NAAQS, and thus, designated all areas of the country as “unclassifiable/attainment.” Also, at that time, the EPA noted its plan to deploy an expanded NO2 monitoring network beginning in 2013. However, on October 5, 2012, the EPA proposed a graduated implementation of the monitoring network between January 1, 2014 and January 1, 2017. Once three years of data is collected from the new monitoring network, the EPA will reassess attainment status with the one-hour NO2 NAAQS. Until that time, the EPA or states may require ambient air quality modeling on a case by case basis to demonstrate compliance with the NO2 standard. Because we are unable to predict the outcome of the EPA's or states' future assessment using the new monitoring network, we are unable to estimate the cost of additions that may be required to meet this regulation.

 

Other Matters

 

Various other proceedings are pending against us and are considered incidental to our operations.

 

Summary

 

We estimate that for all matters for which we are able to reasonably estimate a range of loss, including those noted above and others that are not individually significant, our aggregate reasonably possible losses beyond amounts accrued for all of our contingent liabilities are immaterial to our expected future annual results of operations, liquidity and financial position.  These calculations have been made without consideration of any potential recovery from third-parties.  We have disclosed all significant matters for which we are unable to reasonably estimate a range of possible loss.

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At </font><font style="font-family:Arial;font-size:10pt;">June 30,</font><font style="font-family:Arial;font-size:10pt;"> </font><font style="font-family:Arial;font-size:10pt;">2013</font><font style="font-family:Arial;font-size:10pt;"> and </font><font style="font-family:Arial;font-size:10pt;">December 31,</font><font style="font-family:Arial;font-size:10pt;"> 2012</font><font style="font-family:Arial;font-size:10pt;">, </font><font style="font-family:Arial;font-size:10pt;">our </font><font style="font-family:Arial;font-size:10pt;">advances to</font><font style="font-family:Arial;font-size:10pt;"> </font><font style="font-family:Arial;font-size:10pt;">WPZ totaled </font><font style="font-family:Arial;font-size:10pt;">approximately </font><font style="font-family:Arial;font-size:10pt;">$</font><font style="font-family:Arial;font-size:10pt;">112.2</font><font style="font-family:Arial;font-size:10pt;"> million</font><font style="font-family:Arial;font-size:10pt;"> and $</font><font style="font-family:Arial;font-size:10pt;">29.3 </font><font style="font-family:Arial;font-size:10pt;">million, respectively</font><font style="font-family:Arial;font-size:10pt;">. These advances are represented by demand notes</font><font style="font-family:Arial;font-size:10pt;"> and are classified as Current Assets in the accompanying Balance Sheet</font><font style="font-family:Arial;font-size:10pt;">. The interest rate on these intercompany demand notes is based upon the </font><font style="font-family:Arial;font-size:10pt;">daily </font><font style="font-family:Arial;font-size:10pt;">overnight investment rate paid on WPZ's excess cash</font><font style="font-family:Arial;font-size:10pt;"> at the end of each month, which was approximately </font><font style="font-family:Arial;font-size:10pt;">0.01</font><font style="font-family:Arial;font-size:10pt;"> percent at </font><font style="font-family:Arial;font-size:10pt;">June 30,</font><font style="font-family:Arial;font-size:10pt;"> </font><font style="font-family:Arial;font-size:10pt;">2013</font><font style="font-family:Arial;font-size:10pt;">. </font><font style="font-family:Arial;font-size:10pt;">The interest income from these advances was minimal during the </font><font style="font-family:Arial;font-size:10pt;">six</font><font style="font-family:Arial;font-size:10pt;"> months ended </font><font style="font-family:Arial;font-size:10pt;">June 30,</font><font style="font-family:Arial;font-size:10pt;"> </font><font style="font-family:Arial;font-size:10pt;">2013</font><font style="font-family:Arial;font-size:10pt;"> </font><font style="font-family:Arial;font-size:10pt;">and June 30,</font><font style="font-family:Arial;font-size:10pt;"> 2012</font><font style="font-family:Arial;font-size:10pt;">.</font><font style="font-family:Arial;font-size:10pt;"> Such interest income is included in </font><font style="font-family:Arial;font-size:10pt;font-style:italic;">Other (Income) and Other </font><font style="font-family:Arial;font-size:10pt;font-style:italic;">Expenses</font><font style="font-family:Arial;font-size:10pt;"> </font><font style="font-family:Arial;font-size:10pt;font-style:italic;">&#8211; Miscellaneous other (income) </font><font style="font-family:Arial;font-size:10pt;font-style:italic;">expenses</font><font style="font-family:Arial;font-size:10pt;font-style:italic;">, net</font><font style="font-family:Arial;font-size:10pt;"> on the accompanying Statement of </font><font style="font-family:Arial;font-size:10pt;">Comprehensive </font><font style="font-family:Arial;font-size:10pt;">Income.</font></p><p style='margin-top:0pt; margin-bottom:10pt'><font style="font-family:Arial;font-size:10pt;margin-left:18px;">We have</font><font style="font-family:Arial;font-size:10pt;"> no employees. Services </font><font style="font-family:Arial;font-size:10pt;">necessary to operate our business </font><font style="font-family:Arial;font-size:10pt;">are provided to us by </font><font style="font-family:Arial;font-size:10pt;">Williams and certain affiliates of Williams</font><font style="font-family:Arial;font-size:10pt;">. </font><font style="font-family:Arial;font-size:10pt;">W</font><font style="font-family:Arial;font-size:10pt;">e reimburse </font><font style="font-family:Arial;font-size:10pt;">Williams</font><font style="font-family:Arial;font-size:10pt;"> and its affiliates</font><font style="font-family:Arial;font-size:10pt;"> for all direct and indirect expenses incur</font><font style="font-family:Arial;font-size:10pt;">red</font><font style="font-family:Arial;font-size:10pt;"> or payments ma</font><font style="font-family:Arial;font-size:10pt;">d</font><font style="font-family:Arial;font-size:10pt;">e (including salary, bonus, incentive compensation, and benefits) in connection with these services. </font><font style="font-family:Arial;font-size:10pt;">Employees of Williams also provide general administrative and management services to us, and we are charged for certain administrative expenses incurred by Williams. These charges are either directly identifiable or allocated to our assets. Direct charges are for goods and services provided by Williams at our request. </font><font style="font-family:Arial;font-size:10pt;">Allocated charges are based on a three-factor formula, which considers revenues; property, plant, and equipment; and payroll. In management's estimation, the allocation methodologies used are reasonable and result in a reasonable allocation to us of our costs of doing business incurred by Williams. </font><font style="font-family:Arial;font-size:10pt;">W</font><font style="font-family:Arial;font-size:10pt;">e were billed </font><font style="font-family:Arial;font-size:10pt;">$27.9 million and </font><font style="font-family:Arial;font-size:10pt;">$</font><font style="font-family:Arial;font-size:10pt;">54.3</font><font style="font-family:Arial;font-size:10pt;"> million</font><font style="font-family:Arial;font-size:10pt;"> in the three and six</font><font style="font-family:Arial;font-size:10pt;"> months ended June 30,</font><font style="font-family:Arial;font-size:10pt;"> 2013</font><font style="font-family:Arial;font-size:10pt;">, respectively,</font><font style="font-family:Arial;font-size:10pt;"> and </font><font style="font-family:Arial;font-size:10pt;">$28.8 million and $55.0 million in the three and six</font><font style="font-family:Arial;font-size:10pt;"> months ended June 30,</font><font style="font-family:Arial;font-size:10pt;"> </font><font style="font-family:Arial;font-size:10pt;">2012</font><font style="font-family:Arial;font-size:10pt;">, respectively</font><font style="font-family:Arial;font-size:10pt;">, for these services</font><font style="font-family:Arial;font-size:10pt;">. Such expe</font><font style="font-family:Arial;font-size:10pt;">nses are primarily included in </font><font style="font-family:Arial;font-size:10pt;font-style:italic;">General and administrative</font><font style="font-family:Arial;font-size:10pt;"> and </font><font style="font-family:Arial;font-size:10pt;font-style:italic;">Operation and maintenance</font><font style="font-family:Arial;font-size:10pt;"> expenses on the accompanying Statement of </font><font style="font-family:Arial;font-size:10pt;">Comprehensive </font><font style="font-family:Arial;font-size:10pt;">Income.</font></p><p style='margin-top:0pt; margin-bottom:10pt'><font style="font-family:Arial;font-size:10pt;margin-left:18px;">During the six</font><font style="font-family:Arial;font-size:10pt;"> months ended </font><font style="font-family:Arial;font-size:10pt;">June 30,</font><font style="font-family:Arial;font-size:10pt;"> </font><font style="font-family:Arial;font-size:10pt;">2013</font><font style="font-family:Arial;font-size:10pt;"> and </font><font style="font-family:Arial;font-size:10pt;">2012</font><font style="font-family:Arial;font-size:10pt;">, we declared and paid equity distributions </font><font style="font-family:Arial;font-size:10pt;">to our parent </font><font style="font-family:Arial;font-size:10pt;">of </font><font style="font-family:Arial;font-size:10pt;">$</font><font style="font-family:Arial;font-size:10pt;">27.0</font><font style="font-family:Arial;font-size:10pt;"> million and </font><font style="font-family:Arial;font-size:10pt;">$</font><font style="font-family:Arial;font-size:10pt;">73</font><font style="font-family:Arial;font-size:10pt;">.0</font><font style="font-family:Arial;font-size:10pt;"> million</font><font style="font-family:Arial;font-size:10pt;">, respectively</font><font style="font-family:Arial;font-size:10pt;">. </font><font style="font-family:Arial;font-size:10pt;"> </font><font style="font-family:Arial;font-size:10pt;">During </font><font style="font-family:Arial;font-size:10pt;">July</font><font style="font-family:Arial;font-size:10pt;"> </font><font style="font-family:Arial;font-size:10pt;">2013</font><font style="font-family:Arial;font-size:10pt;">, we declared </font><font style="font-family:Arial;font-size:10pt;">and paid </font><font style="font-family:Arial;font-size:10pt;">equity</font><font style="font-family:Arial;font-size:10pt;"> distributions of $</font><font style="font-family:Arial;font-size:10pt;">35.0</font><font style="font-family:Arial;font-size:10pt;"> million to </font><font style="font-family:Arial;font-size:10pt;">our parent</font><font style="font-family:Arial;font-size:10pt;">.</font><font style="font-family:Arial;font-size:10pt;"> </font></p><p style='margin-top:0pt; margin-bottom:10pt'><font style="font-family:Arial;font-size:10pt;margin-left:18px;">During the six</font><font style="font-family:Arial;font-size:10pt;"> months ended June 30,</font><font style="font-family:Arial;font-size:10pt;"> 2012</font><font style="font-family:Arial;font-size:10pt;">, we received contributions of $</font><font style="font-family:Arial;font-size:10pt;">2.3</font><font style="font-family:Arial;font-size:10pt;"> million from our parent to fund a portion of our </font><font style="font-family:Arial;font-size:10pt;">expansion related </font><font style="font-family:Arial;font-size:10pt;">expenditures for additions to property, plant, and equipment. </font><font style="font-family:Arial;font-size:10pt;">No contributions were received from our parent during the six</font><font style="font-family:Arial;font-size:10pt;"> months ended June 30,</font><font style="font-family:Arial;font-size:10pt;"> 2013</font><font style="font-family:Arial;font-size:10pt;">. </font><font style="font-family:Arial;font-size:10pt;">In July 2013, our parent authorized an additional $</font><font style="font-family:Arial;font-size:10pt;">1.9</font><font style="font-family:Arial;font-size:10pt;"> million capital contribution to us to fund a portion of our expenditures for additions to property, plant and equipment.</font></p><p style='margin-top:0pt; margin-bottom:0pt'><font style="font-family:Arial;font-size:10pt;margin-left:0px;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;We have entered into various other transactions with certain related parties, the amounts of which were not significant. 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Transactions with Affiliates
6 Months Ended
Jun. 30, 2013
Transactions with Affiliates [Abstract]  
TRANSACTIONS WITH AFFILIATES
5. TRANSACTIONS WITH AFFILIATES

 

We are a participant in WPZ's cash management program. At June 30, 2013 and December 31, 2012, our advances to WPZ totaled approximately $112.2 million and $29.3 million, respectively. These advances are represented by demand notes and are classified as Current Assets in the accompanying Balance Sheet. The interest rate on these intercompany demand notes is based upon the daily overnight investment rate paid on WPZ's excess cash at the end of each month, which was approximately 0.01 percent at June 30, 2013. The interest income from these advances was minimal during the six months ended June 30, 2013 and June 30, 2012. Such interest income is included in Other (Income) and Other Expenses – Miscellaneous other (income) expenses, net on the accompanying Statement of Comprehensive Income.

We have no employees. Services necessary to operate our business are provided to us by Williams and certain affiliates of Williams. We reimburse Williams and its affiliates for all direct and indirect expenses incurred or payments made (including salary, bonus, incentive compensation, and benefits) in connection with these services. Employees of Williams also provide general administrative and management services to us, and we are charged for certain administrative expenses incurred by Williams. These charges are either directly identifiable or allocated to our assets. Direct charges are for goods and services provided by Williams at our request. Allocated charges are based on a three-factor formula, which considers revenues; property, plant, and equipment; and payroll. In management's estimation, the allocation methodologies used are reasonable and result in a reasonable allocation to us of our costs of doing business incurred by Williams. We were billed $27.9 million and $54.3 million in the three and six months ended June 30, 2013, respectively, and $28.8 million and $55.0 million in the three and six months ended June 30, 2012, respectively, for these services. Such expenses are primarily included in General and administrative and Operation and maintenance expenses on the accompanying Statement of Comprehensive Income.

During the six months ended June 30, 2013 and 2012, we declared and paid equity distributions to our parent of $27.0 million and $73.0 million, respectively. During July 2013, we declared and paid equity distributions of $35.0 million to our parent.

During the six months ended June 30, 2012, we received contributions of $2.3 million from our parent to fund a portion of our expansion related expenditures for additions to property, plant, and equipment. No contributions were received from our parent during the six months ended June 30, 2013. In July 2013, our parent authorized an additional $1.9 million capital contribution to us to fund a portion of our expenditures for additions to property, plant and equipment.

       We have entered into various other transactions with certain related parties, the amounts of which were not significant. These transactions and the above-described transactions are made on the basis of commercial relationships and prevailing market prices or general industry practices.

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Debt and Financing Arrangements
6 Months Ended
Jun. 30, 2013
Debt and Financing Arrangement [Abstract]  
DEBT AND FINANCING ARRANGEMENT
3. DEBT AND FINANCING ARRANGEMENT
 

Credit Facility

 

       Total letter of credit capacity available to WPZ under the $2.4 billion credit facility is $1.3 billion. At June 30, 2013, no letters of credit have been issued and no loans are outstanding under the credit facility. We may borrow up to $400 million under the credit facility to the extent not otherwise utilized by WPZ and Transcontinental Gas Pipe Line Company, LLC (Transco). At June 30, 2013, the full $400 million under the credit facility was available to us.

 

       On July 31, 2013, WPZ amended the $2.4 billion credit facility to increase the aggregate commitments to $2.5 billion and extend the maturity date to July 31, 2018. The amended credit facility may also, under certain conditions, be increased by up to an additional $500 million. We may borrow up to $500 million under the amended credit facility to the extent not otherwise utilized by WPZ and Transco.

 

       WPZ participates in a commercial paper program, and WPZ management considers amounts outstanding under this program to be a reduction of available capacity under the credit facility. At June 30, 2013, WPZ had $710 million in outstanding commercial paper.

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Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 980 -SubTopic 835 -Section 45 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6501662&loc=d3e56162-110433 false28true 4us-gaap_IncreaseDecreaseInOperatingCapitalAbstractus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalseverboseLabel1falsefalsefalse00falsefalsefalse2falsefalsefalse00falsefalsefalsexbrli:stringItemTypestringfalse09false 5us-gaap_IncreaseDecreaseInAccountsReceivableus-gaap_truecreditdurationfalsefalsefalsefalsefalsefalsefalsetruenegatedLabel1truefalsefalse595000595falsefalsefalse2truefalsefalse20980002098falsefalsefalsexbrli:monetaryItemTypemonetaryThe increase (decrease) during the reporting period in amount due within one year (or one business cycle) from customers for the credit sale of goods and services.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. 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Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 28 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3602-108585 false210false 5us-gaap_IncreaseDecreaseInAccountsReceivableRelatedPartiesus-gaap_truecreditdurationfalsefalsefalsefalsefalsefalsefalsetruenegatedLabel1truefalsefalse-570000-570falsefalsefalse2truefalsefalse22500002250falsefalsefalsexbrli:monetaryItemTypemonetaryThe increase (decrease) during the reporting period in the amount due to the reporting entity for good and services provided to the following types of related parties: a parent company and its subsidiaries; subsidiaries of a common parent; an entity and trust for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of the entity's management, an entity and its principal owners, management, member of their immediate families, affiliates, or other parties with the ability to exert significant influence.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 28 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3602-108585 false211false 5npgp_IncreaseDecreaseInExchangeGasDueFromOthersnpgp_falsecreditdurationfalsefalsefalsefalsefalsefalsefalsetruenegatedLabel1truefalsefalse36470003647falsefalsefalse2truefalsefalse22960002296falsefalsefalsexbrli:monetaryItemTypemonetaryChange in the balance of exchange gas due from others. In the course of providing transportation services to our customers, we may receive or deliver different quantities of gas from shippers than the quantities delivered or received on behalf of those shippers. These transactions result in imbalances, which are typically settled through the receipt or delivery of gas in the future. Customer imbalances to be recovered in-kind are recorded as exchange gas due from others.No definition available.false212false 5us-gaap_IncreaseDecreaseInInventoriesus-gaap_truecreditdurationfalsefalsefalsefalsefalsefalsefalsetruenegatedLabel1truefalsefalse-183000-183falsefalsefalse2truefalsefalse439000439falsefalsefalsexbrli:monetaryItemTypemonetaryThe increase (decrease) during the reporting period in the aggregate value of all inventory held by the reporting entity, associated with underlying transactions that are classified as operating activities.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 28 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3602-108585 false213false 5us-gaap_IncreaseDecreaseInOtherOperatingAssetsus-gaap_truecreditdurationfalsefalsefalsefalsefalsefalsefalsetruenegatedLabel1truefalsefalse-990000-990falsefalsefalse2truefalsefalse-978000-978falsefalsefalsexbrli:monetaryItemTypemonetaryThe increase (decrease) during the reporting period in other assets used in operating activities not separately disclosed in the statement of cash flows. May include changes in other current assets, other noncurrent assets, or a combination of other current and noncurrent assets.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 28 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3602-108585 false214false 5us-gaap_IncreaseDecreaseInAccountsPayableTradeus-gaap_truedebitdurationfalsefalsefalsefalsefalsefalsefalsefalseverboseLabel1truefalsefalse-2686000-2686falsefalsefalse2truefalsefalse-2465000-2465falsefalsefalsexbrli:monetaryItemTypemonetaryChange in recurring obligations of a business that arise from the acquisition of merchandise, materials, supplies and services used in the production and sale of goods and services.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. 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Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 28 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3602-108585 false215false 5us-gaap_IncreaseDecreaseInAccountsPayableRelatedPartiesus-gaap_truedebitdurationfalsefalsefalsefalsefalsefalsefalsefalseverboseLabel1truefalsefalse-749000-749falsefalsefalse2truefalsefalse46950004695falsefalsefalsexbrli:monetaryItemTypemonetaryThe increase (decrease) during the reporting period in the obligations due for goods and services provided by the following types of related parties: a parent company and its subsidiaries, subsidiaries of a common parent, an entity and trust for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of the entities' management, an entity and its principal owners, management, or member of their immediate families, affiliates, or other parties with the ability to exert significant influence.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 28 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3602-108585 false216false 5npgp_IncreaseDecreaseInExchangeGasDueToOthersnpgp_falsedebitdurationfalsefalsefalsefalsefalsefalsefalsefalseverboseLabel1truefalsefalse-3647000-3647falsefalsefalse2truefalsefalse-2295000-2295falsefalsefalsexbrli:monetaryItemTypemonetaryChange in the balance of exchange gas due to others. In the course of providing transportation services to our customers, we may receive or deliver different quantities of gas from shippers than the quantities delivered or received on behalf of those shippers. These transactions result in imbalances, which are typically settled through the receipt or delivery of gas in the future. Customer imbalances to be repaid are recorded as exchange gas due to others.No definition available.false217false 5us-gaap_IncreaseDecreaseInOtherAccruedLiabilitiesus-gaap_truedebitdurationfalsefalsefalsefalsefalsefalsefalsefalseverboseLabel1truefalsefalse19740001974falsefalsefalse2truefalsefalse303000303falsefalsefalsexbrli:monetaryItemTypemonetaryThe increase (decrease) during the reporting period in other expenses incurred but not yet paid.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. 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Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 28 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3602-108585 false218true 4npgp_IncreaseDecreaseInNoncurrentAssetsAndLiabilitiesAbstractnpgp_falsenadurationfalsefalsefalsefalsefalsefalsefalsefalseverboseLabel1falsefalsefalse00falsefalsefalse2falsefalsefalse00falsefalsefalsexbrli:stringItemTypestringfalse019false 5us-gaap_IncreaseDecreaseInDeferredChargesus-gaap_truecreditdurationfalsefalsefalsefalsefalsefalsefalsetruenegatedLabel1truefalsefalse-3434000-3434falsefalsefalse2truefalsefalse-954000-954falsefalsefalsexbrli:monetaryItemTypemonetaryThe increase (decrease) during the reporting period in the value of expenditures made during the current reporting period for benefits that will be received over a period of years. 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Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 28 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3602-108585 false220false 5us-gaap_IncreaseDecreaseInOtherNoncurrentLiabilitiesus-gaap_truedebitdurationfalsefalsefalsefalsefalsefalsefalsefalseverboseLabel1truefalsefalse41930004193falsefalsefalse2truefalsefalse26390002639falsefalsefalsexbrli:monetaryItemTypemonetaryThe increase (decrease) during the reporting period in other noncurrent operating liabilities not separately disclosed in the statement of cash flows.No definition available.false221false 3us-gaap_NetCashProvidedByUsedInOperatingActivitiesus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalsetotalLabel1truefalsefalse132297000132297falsefalsefalse2truefalsefalse124429000124429falsefalsefalsexbrli:monetaryItemTypemonetaryThe net cash from (used in) all of the entity's operating activities, including those of discontinued operations, of the reporting entity. 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Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 25 -URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3536-108585 true222true 2us-gaap_NetCashProvidedByUsedInFinancingActivitiesAbstractus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalseverboseLabel1falsefalsefalse00falsefalsefalse2falsefalsefalse00falsefalsefalsexbrli:stringItemTypestringfalse023false 3us-gaap_ProceedsFromContributionsFromParentus-gaap_truedebitdurationfalsefalsefalsefalsefalsefalsefalsefalseverboseLabel1truefalsefalse00falsefalsefalse2truefalsefalse23300002330falsefalsefalsexbrli:monetaryItemTypemonetaryThe cash inflow from parent as a source of financing that is recorded as additional paid in capital.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3255-108585 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Financing Activities -URI http://asc.fasb.org/extlink&oid=6513228 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 18 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. false224false 3us-gaap_PaymentsOfDistributionsToAffiliatesus-gaap_truecreditdurationfalsefalsefalsefalsefalsefalsefalsetruenegatedLabel1truefalsefalse-27000000-27000falsefalsefalse2truefalsefalse-73000000-73000falsefalsefalsexbrli:monetaryItemTypemonetaryThe distributions of earnings to an entity that is affiliated with the reporting entity by means of direct or indirect ownership.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Financing Activities -URI http://asc.fasb.org/extlink&oid=6513228 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 18 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. 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This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. true227true 3us-gaap_PaymentsForProceedsFromProductiveAssetsAbstractus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalseverboseLabel1falsefalsefalse00falsefalsefalse2falsefalsefalse00falsefalsefalsexbrli:stringItemTypestringfalse028false 4us-gaap_PaymentsToAcquirePropertyPlantAndEquipmentus-gaap_truecreditdurationfalsefalsefalsefalsefalsefalsefalsetruenegatedLabel1truefalsefalse-21898000-21898falsefalsefalse2truefalsefalse-47147000-47147falsefalsefalsexbrli:monetaryItemTypemonetaryThe cash outflow associated with the acquisition of long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale; includes cash outflows to pay for construction of self-constructed assets.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Investing Activities -URI http://asc.fasb.org/extlink&oid=6516133 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 13 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3213-108585 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 17 -Subparagraph c -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. 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Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 28 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3602-108585 false231false 3us-gaap_NetCashProvidedByUsedInInvestingActivitiesus-gaap_truedebitdurationfalsefalsefalsefalsefalsefalsefalsefalsetotalLabel1truefalsefalse-103120000-103120falsefalsefalse2truefalsefalse-51837000-51837falsefalsefalsexbrli:monetaryItemTypemonetaryThe net cash inflow or outflow from investing activity.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 24 -URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3521-108585 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 230 -SubTopic 10 -Section 45 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3574-108585 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 26 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. 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Balance Sheet (Unaudited) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2013
Dec. 31, 2012
CURRENT ASSETS:    
Cash $ 100 $ 117
Receivables:    
Trade 37,964 39,836
Affiliated companies 2,253 1,683
Advances to affiliate 112,195 29,322
Other 7,977 6,700
Materials and supplies, less reserves of $28 at June 30, 2013 and $81 at December 31, 2012 10,320 10,137
Exchange gas due from others 3,456 3,426
Exchange gas offset 1,069 1,277
Prepayments and other 4,343 3,353
Total current assets 179,677 95,851
PROPERTY, PLANT AND EQUIPMENT, at cost 3,173,360 3,163,489
Less-Accumulated depreciation 1,190,852 1,159,944
Total property, plant and equipment, net 1,982,508 2,003,545
OTHER ASSETS:    
Deferred charges 7,474 7,918
Regulatory assets 58,645 60,298
Total other assets 66,119 68,216
Total assets 2,228,304 2,167,612
Payables:    
Trade 19,076 18,383
Affiliated companies 10,163 10,912
Accrued liabilities:    
Taxes, other than income taxes 12,354 10,961
Interest 4,045 4,045
Exchange gas due to others 2,925 6,572
Other 5,044 4,467
Total current liabilities 53,607 55,340
LONG-TERM DEBT 694,125 694,027
OTHER NONCURRENT LIABILITIES:    
Asset retirement obligations 69,502 67,557
Other 24,200 22,450
Total other noncurrent liabilities 93,702 90,007
CONTINGENT LIABILITIES AND COMMITMENTS (Note 2)      
OWNER'S EQUITY:    
Owner's capital 1,060,592 1,060,592
Retained earnings 326,095 267,432
Accumulated other comprehensive income 183 214
Total owner's equity 1,386,870 1,328,238
Total liabilities and owner's equity $ 2,228,304 $ 2,167,612

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Debt and Financing Arrangements (Details Textual) (USD $)
Jun. 30, 2013
Williams Partners L.P. [Member]
Jun. 30, 2013
$2.4 billion credit facility [Member]
Jun. 30, 2013
$2.4 billion credit facility [Member]
Williams Partners L.P. [Member]
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Jul. 31, 2013
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Line of Credit Facility [Line Items]            
Line of Credit Facility, Maximum Borrowing Capacity   $ 400,000,000 $ 2,400,000,000 $ 1,300,000,000 $ 500,000,000 $ 2,500,000,000
Letters of Credit Outstanding, Amount       0    
Line of Credit Facility, Amount Outstanding     0      
Additional Amount By Which Credit Facility Can Be Increased           500,000,000
Commercial Paper $ 710,000,000          
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In Thousands, unless otherwise specified
6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
OPERATING ACTIVITIES:    
Net income $ 85,663 $ 70,194
Adjustments to reconcile net income to net cash provided by (used in) operating activities:    
Depreciation 47,740 46,535
Regulatory debits (credits) 350 (404)
Amortization of deferred charges and credits 830 795
Allowance for equity funds used during construction (436) (719)
Changes in current assets and liabilities:    
Trade and other accounts receivable 595 2,098
Affiliated receivables (570) 2,250
Exchange gas due from others 3,647 2,296
Materials and supplies (183) 439
Other current assets (990) (978)
Trade accounts payable (2,686) (2,465)
Affiliated payables (749) 4,695
Exchange gas due to others (3,647) (2,295)
Other accrued liabilities 1,974 303
Changes in noncurrent assets and liabilities:    
Deferred charges (3,434) (954)
Noncurrent liabilities 4,193 2,639
Net cash provided by operating activities 132,297 124,429
FINANCING ACTIVITIES:    
Capital contributions from parent 0 2,330
Distributions paid (27,000) (73,000)
Other (2,194) (1,719)
Net cash used in financing activities (29,194) (72,389)
Property, plant and equipment:    
Capital expenditures (21,898) (47,147)
Proceeds from sales 1,651 4,748
Advances to affiliates (82,873) (9,438)
Net cash used in investing activities (103,120) (51,837)
NET (DECREASE) INCREASE IN CASH (17) 203
CASH AT BEGINNING OF PERIOD 117 37
CASH AT END OF PERIOD $ 100 $ 240
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In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
STATEMENT OF COMPREHENSIVE INCOME        
Operating Revenues $ 113,853 $ 106,311 $ 232,587 $ 217,683
OPERATING EXPENSES:        
General and administrative 15,773 17,417 31,983 34,231
Operation and maintenance 18,693 19,236 35,488 36,652
Depreciation 23,728 23,225 47,740 46,535
Regulatory debits (credits) 165 (115) 350 (404)
Taxes, other than income taxes 4,352 3,737 8,692 8,199
Total operating expenses 62,711 63,500 124,253 125,213
Operating Income 51,142 42,811 108,334 92,470
OTHER (INCOME) AND OTHER EXPENSES:        
Interest expense 11,555 11,587 23,109 23,180
Allowance for equity and borrowed funds used during construction (371) (742) (647) (1,053)
Miscellaneous other (income) expenses, net (67) 80 209 149
Total other (income) and other expenses 11,117 10,925 22,671 22,276
NET INCOME 40,025 31,886 85,663 70,194
CASH FLOW HEDGES:        
Amortization of cash flow hedges into Other Interest (16) (15) (31) (31)
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This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. true221true 4us-gaap_AccountsPayableCurrentAbstractus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalseverboseLabel1falsefalsefalse00falsefalsefalse2falsefalsefalse00falsefalsefalsexbrli:stringItemTypestringfalse022false 5us-gaap_AccountsPayableTradeCurrentus-gaap_truecreditinstantfalsefalsefalsefalsefalsefalsefalsefalseverboseLabel1truefalsefalse1907600019076falsefalsefalse2truefalsefalse1838300018383falsefalsefalsexbrli:monetaryItemTypemonetaryCarrying value as of the balance sheet date of obligations incurred (and for which invoices have typically been received) and payable to vendors for goods and services received that are used in an entity's business. 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This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.20) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section 45 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6361293&loc=d3e7018-107765 false227false 5npgp_ExchangeGasDueToOthersnpgp_falsecreditinstantfalsefalsefalsefalsefalsefalsefalsefalseverboseLabel1truefalsefalse29250002925falsefalsefalse2truefalsefalse65720006572falsefalsefalsexbrli:monetaryItemTypemonetaryIn the course of providing transportation services to our customers, we may receive or deliver different quantities of gas from shippers than the quantities delivered or received on behalf of those shippers. 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6 Months Ended
Jun. 30, 2013
Environmental Matters [Abstract]  
Accrual for Environmental Loss Contingencies $ 7,500,000
Minimum [Member]
 
Environmental Matters [Abstract]  
Estimated Capital Costs For Compliance With Hazardous Air Pollutant Regulations 500,000
Maximum [Member]
 
Environmental Matters [Abstract]  
Estimated Capital Costs For Compliance With Hazardous Air Pollutant Regulations $ 1,000,000
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6 Months Ended 3 Months Ended 6 Months Ended 1 Months Ended 6 Months Ended
Jun. 30, 2013
Employees
Jun. 30, 2012
Dec. 31, 2012
Jun. 30, 2013
Williams Partners L.P. [Member]
Dec. 31, 2012
Williams Partners L.P. [Member]
Jun. 30, 2013
The Williams Companies, Inc.[Member]
Jun. 30, 2012
The Williams Companies, Inc.[Member]
Jun. 30, 2013
The Williams Companies, Inc.[Member]
Jun. 30, 2012
The Williams Companies, Inc.[Member]
Jul. 31, 2013
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Jun. 30, 2013
Williams Partners Operating LLC [Member]
Jun. 30, 2012
Williams Partners Operating LLC [Member]
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Related Party Transaction, Rate 0.01%                      
Entity Number of Employees 0                      
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In Millions, unless otherwise specified
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Jun. 30, 2013
Jun. 30, 2012
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Jun. 30, 2012
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Jun. 30, 2012
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Basis of Presentation [Abstract]              
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Parent, limited partner ownership percentage 66.00%            
Parent, general partner ownership percentage 2.00%            
Prior Period              
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Basis of Presentation
6 Months Ended
Jun. 30, 2013
Basis of Presentation [Abstract]  
BASIS OF PRESENTATION
1. BASIS OF PRESENTATION

 

       In this report, Northwest Pipeline GP (Northwest) is at times referred to in the first person as “we”, “us” or “our.”

 

       On June 30, 2013, Northwest was indirectly owned by Williams Partners L.P. (WPZ), a publicly traded Delaware limited partnership, which is consolidated by The Williams Companies, Inc. (Williams). At June 30, 2013, Williams holds an approximate 68 percent interest in WPZ, comprised of an approximate 66 percent limited partner interest and all of WPZ's 2 percent general partner interest.

 

       On July 1, 2013, Northwest converted from a Delaware general partnership to a Delaware limited liability company, Northwest Pipeline LLC (Company). Following the conversion, the sole member of the Company, Williams Partners Operating LLC, a Delaware limited liability company, executed a limited liability company operating agreement. In connection with the conversion of the Company to a limited liability company, the Amended and Restated Partnership Agreement of Northwest was terminated.

 

General

 

       The accompanying interim financial statements do not include all the notes in our annual financial statements, and therefore, should be read in conjunction with the financial statements and notes thereto in our 2012 Annual Report on Form 10-K. The accompanying unaudited financial statements include all adjustments both normal recurring and others which, in the opinion of our management, are necessary to present fairly our interim financial statements.

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

 

       Certain prior period amounts reported within Total operating expenses in the Statement of Comprehensive Income have been reclassified to conform to the current presentation. For the three and six months ended June 30, 2012, the effect of the correction increased Operation and maintenance costs $0.7 million and $1.2 million, respectively; increased General and administrative expenses $0.1 million and $0.4 million, respectively; and decreased Taxes, other than income taxes $0.8 million and $1.6 million, respectively; with no net impact on Total operating expenses, Operating Income, or Net Income.

 

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Financial Instruments (Details Textual) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2013
Dec. 31, 2012
Fair Value, Inputs, Level 2 [Member]
   
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Long-term Debt, Fair Value $ 817.4 $ 840.2
Carrying (Reported) Amount, Fair Value Disclosure [Member]
   
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Long-term Debt, Fair Value 694.1 694.0
Estimate of Fair Value, Fair Value Disclosure [Member]
   
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Long-term Debt, Fair Value $ 817.4 $ 840.2
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Document and Entity Information
6 Months Ended
Jun. 30, 2013
Document and Entity Information [Abstract]  
Entity Registrant Name Northwest Pipeline LLC
Entity Central Index Key 0000110019
Document Type 10-Q
Document Period End Date Jun. 30, 2013
Amendment Flag false
Document Fiscal Year Focus 2013
Document Fiscal Period Focus Q2
Current Fiscal Year End Date --12-31
Entity Well-known Seasoned Issuer No
Entity Voluntary Filers No
Entity Current Reporting Status Yes
Entity Filer Category Non-accelerated Filer
Entity Common Stock, Shares Outstanding 0
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