Commitments and Contigencies

12 Months Ended

Dec. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

Gas Purchase and Pipeline Capacity Purchase and Release Commitments

NW Natural has signed agreements providing for the reservation of firm pipeline capacity under which it is required to make fixed monthly payments for contracted capacity. The pricing component of the monthly payment is established, subject to change, by U.S. or Canadian regulatory bodies, or is established directly with private counterparties, as applicable. In addition, NW Natural has entered into long-term agreements to release firm pipeline capacity. NW Natural also enters into short-term and long-term gas purchase agreements.

The aggregate amounts of these agreements were as follows at December 31, 2020:


In thousands	Gas Purchase Agreements		Pipeline Capacity Purchase Agreements		Pipeline Capacity Release Agreements
2021	$	83,475	$	77,748	$	7,892
2022	—		80,646		7,182
2023	—		78,503		3,632
2024	—		73,472		3,632
2025	—		71,313		3,027
Thereafter	—		516,291		—
Total	83,475		897,973		25,365
Less: Amount representing interest	25		89,303		162
Total at present value	$	83,450	$	808,670	$	25,203

Total fixed charges under capacity purchase agreements were $81.8 million for 2020, $82.2 million for 2019, and $82.6 million for 2018, of which $4.8 million, $4.3 million, and $4.3 million, respectively, related to capacity releases. In addition, per-unit charges are required to be paid based on the actual quantities shipped under the agreements. In certain take-or-pay purchase commitments, annual deficiencies may be offset by prepayments subject to recovery over a longer term if future purchases exceed the minimum annual requirements.

Leases

Refer to Note 7 for a discussion of lease commitments and contingencies.

Environmental Matters

Refer to Note 18 for a discussion of environmental commitments and contingencies.