Variable Interest Entities

9 Months Ended

Sep. 30, 2018

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Variable Interest Entities

Note 9. Variable Interest Entities

The primary beneficiary of a VIE is required to consolidate the VIE and to disclose certain information about its significant variable interest in the VIE. The primary beneficiary of a VIE is the entity that has both: (1) the power to direct activities that most significantly impact the entity’s economic performance and (2) the obligation to absorb losses or receive benefits from the entity that could potentially be significant to the VIE.

DEQPS, an affiliated VIE, provides operational services to certain Dominion Energy subsidiaries, including Questar Gas, as a subsidiary service company. Questar Gas purchased shared services from DEQPS of $0.3 million and $0.4 million for the three months ended September 30, 2018 and 2017, respectively, and $0.9 million and $1.1 million for the nine months ended September 30, 2018 and 2017, respectively. The Balance Sheets at September 30, 2018 and December 31, 2017, included amounts due to DEQPS of $0.1 million and less than $0.1 million, respectively.

Questar Gas entered into a service agreement with DES, an affiliated VIE, effective January 2018. DES provides accounting, legal, finance, and certain administrative and technical services to Dominion Energy and its subsidiaries including Questar Gas. Questar Gas purchased shared services from DES of $11.6 million for the three months ended September 30, 2018 and $36.7 million for the nine months ended September 30, 2018. The Balance Sheet at September 30, 2018 included amounts due to DES of $3.7 million.

Questar Gas determined that it is not the primary beneficiary of DEQPS or DES as it does not have both the power to direct the activities that most significantly impact their economic performance nor the obligation to absorb losses and benefits which could be significant to it. Questar Gas has no obligation to absorb more than its allocated share of DEQPS and DES costs.