Regulatory Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2017

Regulatory assets and liabilities include the following:

	September 30,		December 31,
	2017		2016
(millions)
Regulatory assets:
Purchased-gas adjustment⁽¹⁾	$	40.6	$	3.4
Pipeline integrity costs⁽²⁾		2.0		1.9
Contract withholding⁽³⁾		0.1		2.6
EEP⁽⁴⁾		3.8		1.1
Other		0.8		0.6
Regulatory assets-current		47.3		9.6
Cost of reacquired debt⁽⁵⁾		2.8		3.2
Pipeline integrity costs⁽²⁾		1.1		2.3
Regulatory assets-noncurrent⁽⁶⁾		3.9		5.5
Total regulatory assets	$	51.2	$	15.1
Regulatory liabilities:
Cost of plant removal and AROs⁽⁷⁾	$	3.8	$	3.5
Curtailment penalty⁽⁸⁾		0.9		—
CET⁽⁹⁾		0.3		2.9
Other		0.3		0.1
Regulatory liabilities-current⁽¹⁰⁾		5.3		6.5
Cost of plant removal and AROs⁽⁷⁾		192.9		189.1
Other		0.2		—
Regulatory liabilities-noncurrent		193.1		189.1
Total regulatory liabilities	$	198.4	$	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)	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.

(3)	The balance at December 31, 2016 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.

(4)

Relates to funds expended for promoting the conservation of natural gas through advertising, rebates for efficient homes and appliances and home energy audits. Costs are recovered from customers through periodic rate adjustments. Costs incurred in excess of recoveries result in an asset; recoveries in excess of costs result in a liability.

(5)	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 5.3 years as of September 30, 2017.

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

(7)	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.

(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.

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

(10)	Current regulatory liabilities are presented in other current liabilities in the Balance Sheets.

Schedule of Regulatory Liabilities

Regulatory assets and liabilities include the following:

	September 30,		December 31,
	2017		2016
(millions)
Regulatory assets:
Purchased-gas adjustment⁽¹⁾	$	40.6	$	3.4
Pipeline integrity costs⁽²⁾		2.0		1.9
Contract withholding⁽³⁾		0.1		2.6
EEP⁽⁴⁾		3.8		1.1
Other		0.8		0.6
Regulatory assets-current		47.3		9.6
Cost of reacquired debt⁽⁵⁾		2.8		3.2
Pipeline integrity costs⁽²⁾		1.1		2.3
Regulatory assets-noncurrent⁽⁶⁾		3.9		5.5
Total regulatory assets	$	51.2	$	15.1
Regulatory liabilities:
Cost of plant removal and AROs⁽⁷⁾	$	3.8	$	3.5
Curtailment penalty⁽⁸⁾		0.9		—
CET⁽⁹⁾		0.3		2.9
Other		0.3		0.1
Regulatory liabilities-current⁽¹⁰⁾		5.3		6.5
Cost of plant removal and AROs⁽⁷⁾		192.9		189.1
Other		0.2		—
Regulatory liabilities-noncurrent		193.1		189.1
Total regulatory liabilities	$	198.4	$	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)	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.

(3)	The balance at December 31, 2016 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.

(4)

(5)	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 5.3 years as of September 30, 2017.

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

(7)	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.

(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.

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

(10)	Current regulatory liabilities are presented in other current liabilities in the Balance Sheets.