2. SIGNIFICANT ACCOUNTING POLICIES

Our significant accounting policies are described in Note 2 of the 2013 Form 10-K. There were no material changes to those accounting policies during the three months ended March 31, 2014. The following are current updates to certain critical accounting policy estimates and accounting standards in general.

Regulatory Accounting

In applying regulatory accounting in accordance with generally accepted accounting principles in the United States of America (GAAP), we capitalize or defer certain costs and revenues as regulatory assets and liabilities. These deferrals were as follows:



	Regulatory Assets
	March 31,				December 31,
In thousands	2014		2013		2013
Current:
Unrealized loss on derivatives⁽¹⁾	$	1,191	$	3,450	$	1,891
Other⁽²⁾	26,643		35,551		20,744
Total current	$	27,834	$	39,001	$	22,635
Non-current:
Unrealized loss on derivatives⁽¹⁾	$	96	$	642	$	615
Pension balancing⁽³⁾	27,328		17,322		25,713
Deferred income taxes	49,007		53,065		51,814
Pension and other postretirement benefit liabilities⁽³⁾	123,399		178,377		125,855
Environmental costs⁽⁴⁾	63,517		125,671		148,389
Other⁽²⁾	21,699		9,376		17,217
Total non-current	$	285,046	$	384,453	$	369,603



	Regulatory Liabilities
	March 31,				December 31,
In thousands	2014		2013		2013
Current:
Gas costs	$	9,137	$	8,694	$	7,510
Unrealized gain on derivatives⁽¹⁾	15,788		8,054		5,290
Other⁽²⁾	12,761		11,491		15,535
Total current	$	37,686	$	28,239	$	28,335
Non-current:
Gas costs	$	2,602	$	1,407	$	2,172
Unrealized gain on derivatives⁽¹⁾	1,078		2,836		1,880
Accrued asset removal costs	299,026		285,437		296,294
Other⁽²⁾	6,152		3,455		3,139
Total non-current	$	308,858	$	293,135	$	303,485


⁽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 (PGA) mechanism when realized at settlement.


⁽²⁾	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.


⁽³⁾	Certain utility pension costs 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. See Note 7.

⁽⁴⁾

Environmental costs relate to specific sites approved for regulatory deferral by the Public Utility Commission of Oregon (OPUC) and Washington Utilities and Transportation Commission (WUTC). In Oregon, we earn a carrying charge on cash amounts paid, whereas amounts accrued but not yet paid do not earn a carrying charge until expended. In Washington, a carrying charge related to deferred amounts will be determined in a future proceeding. For further information on environmental matters, see Note 13.

New Accounting Standards

Recent Accounting Pronouncements

OBLIGATIONS RESULTING FROM JOINT AND SEVERAL LIABILITY ARRANGEMENTS. In February 2013, the Financial Accounting Standards Board (FASB) issued guidance regarding the recognition, measurement and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date. Under the new guidance, an entity is required to measure fixed obligations as the sum of the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors plus any additional amount the reporting entity expects to pay on behalf of its co-obligors. In addition, an entity must disclose the nature and amount of the obligation as well as other information about the obligations. The adoption of this guidance during the first quarter of 2014 did not have a material impact on our financial position, results of operations, or disclosures.

PRESENTATION OF UNRECOGNIZED TAX BENEFIT. In July 2013, the FASB issued guidance that requires an unrecognized tax benefit, or a portion of an unrecognized tax benefit, be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except under certain circumstances. The adoption of this guidance during the first quarter of 2014 did not have a material impact on our financial position, results of operations, or disclosures.

Subsequent Events

See Note 14 for information regarding the amendment to the Gill Ranch loan agreement.