Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2012

Disclosure Summary Of Significant Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

2. Significant Accounting Policies Update

Our significant accounting policies are described in Note 2 of the 2011 Form 10-K.  There were no material changes to those accounting policies during the nine months ended September 30, 2012.  The following are current updates to certain critical accounting policy estimates and accounting standards in general. See Note 14 for disclosures of subsequent events that occurred after September 30, 2012 but prior to issuance of this report.

Regulatory Accounting

In applying regulatory accounting principles in accordance with generally accepted accounting principles in the United States of America (U.S. GAAP), we capitalize or defer certain costs and revenues as regulatory assets and liabilities.  At September 30, 2012 and 2011 and at December 31, 2011, the amounts deferred as regulatory assets and liabilities were as follows:

Regulatory Assets
Thousands	September 30, 2012		September 30, 2011		December 31, 2011
Current:
Unrealized loss on derivatives(1)	$	17,156	$	46,651	$	57,317
Pension and other postretirement benefit liabilities(2)	15,491		10,988		15,491
Other(3)	21,244		19,095		21,865
Total current	$	53,891	$	76,734	$	94,673
Non-current:
Unrealized loss on derivatives(1)	$	615	$	7,429	$	6,536
Pension balancing(2)	13,134		3,989		6,008
Income tax asset	58,437		70,241		65,264
Pension and other postretirement benefit liabilities(2)	158,894		110,007		170,512
Environmental costs(4)	128,173		122,454		105,670
Other(3)	8,439		14,637		17,402
Total non-current	$	367,692	$	328,757	$	371,392

Regulatory Liabilities
Thousands	September 30, 2012		September 30, 2011		December 31, 2011
Current:
Gas costs	$	10,069	$	16,991	$	17,994
Unrealized gain on derivatives(1)	6,771		3,932		2,853
Other(3)	7,970		7,670		10,199
Total current	$	24,810	$	28,593	$	31,046
Non-current:
Gas costs	$	596	$	1,250	$	8,420
Unrealized gain on derivatives(1)	5,608		227		—
Accrued asset removal costs	278,897		263,123		267,355
Other(3)	2,996		2,307		2,607
Total non-current	$	288,097	$	266,907	$	278,382

⁽¹⁾  Unrealized gains or losses on derivatives are non-cash items and therefore do not earn a rate of return or a carrying charge.  These amounts are recoverable through utility rates as part of the annual Purchased Gas Adjustment mechanism when realized at settlement.

⁽²⁾  Certain pension costs of the utility are approved for regulatory deferral, including amounts recorded to the pension balancing account, to mitigate the effects of higher and lower pension expenses.  Pension costs that are deferred include an interest component when recognized in net periodic benefit costs or earn a rate of return or carrying charge (see Note 8).

⁽³⁾  Other primarily consists of deferrals and amortizations under other approved regulatory mechanisms.  The accounts being amortized typically earn a rate of return or carrying charge.

⁽⁴⁾  Environmental costs are related to those sites that are approved for regulatory deferral.  In Oregon we earn a rate of return on amounts paid, whereas amounts accrued but not yet paid do not earn a rate of return or a carrying charge until expended. Environmental costs related to Washington were deferred beginning in 2011, with cost recovery and a carrying charge to be determined in a future proceeding.

New Accounting Standards

Adopted Standards

There were no new accounting standards adopted during the third quarter of 2012.

Recent Accounting Pronouncements

Balance Sheet Offsetting.  In December 2011, the Financial Accounting Standards Board (FASB) issued authoritative guidance regarding the offsetting of assets and liabilities on the balance sheet.  The standard is intended to provide more comparable guidance between the U.S. GAAP and international accounting standards by requiring entities to disclose both gross and net amounts for assets and liabilities offset on the balance sheet as well as other disclosures concerning their enforceable master netting arrangements.  This guidance is effective for annual reporting periods beginning after January 1, 2013, and we do not expect this standard to have a material effect on our financial statement disclosures.