Regulatory Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2017

Regulatory assets and liabilities include the following:

	June 30,		December 31,
	2017		2016
(millions)
Regulatory assets:
Purchased-gas adjustment⁽¹⁾	$	10.8	$	3.4
Contract withholding⁽²⁾		—		2.6
Pipeline integrity costs⁽³⁾		1.9		1.9
Other		0.7		1.7
Regulatory assets-current		13.4		9.6
Cost of reacquired debt⁽⁴⁾		2.9		3.2
Pipeline integrity costs⁽³⁾		1.1		2.3
Other		0.4		—
Regulatory assets-noncurrent⁽⁵⁾		4.4		5.5
Total regulatory assets	$	17.8	$	15.1
Regulatory liabilities:
Cost of plant removal and AROs⁽⁶⁾	$	5.0	$	3.5
CET⁽⁷⁾		2.3		2.9
Curtailment penalty⁽⁸⁾		1.1		—
Other		0.7		0.1
Regulatory liabilities-current		9.1		6.5
Cost of plant removal and AROs⁽⁶⁾		190.8		189.1
Regulatory liabilities-noncurrent		190.8		189.1
Total regulatory liabilities	$	199.9	$	195.6

(1)	Purchased-gas costs that are different from those provided for in present rates are accumulated and recovered or credited through future rate changes.

(2)	Represents a disputed amount withheld from a supplier of storage services. The dispute was settled in March 2017 and the amount reversed, which resulted in no material impact to Questar Gas' results of operations, financial position or cash flows.

(3)	The costs of complying with pipeline-integrity regulations are recovered in rates subject to a Utah Commission order. Questar Gas is allowed to recover $7.0 million per year. Costs incurred in excess of this amount will be recovered in future rate changes.

(4)	Gains and losses on the reacquisition of debt by rate-regulated companies are deferred and amortized as interest expense over the would-be remaining life of the reacquired debt. The reacquired debt costs had a weighted-average life of approximately 5.6 years as of June 30, 2017.

(5)	Noncurrent regulatory assets are presented in other noncurrent assets in the Balance Sheets.

(6)	Cost of plant removal and AROs represent amounts recovered from customers for costs of future activities to remove assets that are expected to be incurred at the time of retirement.

(7)	Represents the difference between actual and allowed revenues. Any deficiency in amounts collected is recovered through periodic rate adjustments.

(8)	Interruptible customers who fail to interrupt service when called upon by Questar Gas incur a curtailment penalty. Penalties recovered by Questar Gas are credited to ratepayers as a reduction to the infrastructure-replacement program.

Regulatory assets and liabilities include the following:

	June 30,		December 31,
	2017		2016
(millions)
Regulatory assets:
Purchased-gas adjustment⁽¹⁾	$	10.8	$	3.4
Contract withholding⁽²⁾		—		2.6
Pipeline integrity costs⁽³⁾		1.9		1.9
Other		0.7		1.7
Regulatory assets-current		13.4		9.6
Cost of reacquired debt⁽⁴⁾		2.9		3.2
Pipeline integrity costs⁽³⁾		1.1		2.3
Other		0.4		—
Regulatory assets-noncurrent⁽⁵⁾		4.4		5.5
Total regulatory assets	$	17.8	$	15.1
Regulatory liabilities:
Cost of plant removal and AROs⁽⁶⁾	$	5.0	$	3.5
CET⁽⁷⁾		2.3		2.9
Curtailment penalty⁽⁸⁾		1.1		—
Other		0.7		0.1
Regulatory liabilities-current		9.1		6.5
Cost of plant removal and AROs⁽⁶⁾		190.8		189.1
Regulatory liabilities-noncurrent		190.8		189.1
Total regulatory liabilities	$	199.9	$	195.6

(1)	Purchased-gas costs that are different from those provided for in present rates are accumulated and recovered or credited through future rate changes.

(2)	Represents a disputed amount withheld from a supplier of storage services. The dispute was settled in March 2017 and the amount reversed, which resulted in no material impact to Questar Gas' results of operations, financial position or cash flows.

(3)	The costs of complying with pipeline-integrity regulations are recovered in rates subject to a Utah Commission order. Questar Gas is allowed to recover $7.0 million per year. Costs incurred in excess of this amount will be recovered in future rate changes.

(4)	Gains and losses on the reacquisition of debt by rate-regulated companies are deferred and amortized as interest expense over the would-be remaining life of the reacquired debt. The reacquired debt costs had a weighted-average life of approximately 5.6 years as of June 30, 2017.

(5)	Noncurrent regulatory assets are presented in other noncurrent assets in the Balance Sheets.

(6)	Cost of plant removal and AROs represent amounts recovered from customers for costs of future activities to remove assets that are expected to be incurred at the time of retirement.

(7)	Represents the difference between actual and allowed revenues. Any deficiency in amounts collected is recovered through periodic rate adjustments.

(8)	Interruptible customers who fail to interrupt service when called upon by Questar Gas incur a curtailment penalty. Penalties recovered by Questar Gas are credited to ratepayers as a reduction to the infrastructure-replacement program.