Significant Accounting Policies

6 Months Ended

Jun. 30, 2021

Amounts deferred as regulatory assets and liabilities for NW Holdings and NW Natural were as follows:


	Regulatory Assets
	June 30,				December 31,
In thousands	2021		2020		2020
NW Natural:
Current:
Unrealized loss on derivatives(1)	$	3,393	$	2,956	$	4,198
Gas costs	29,486		6,046		1,979
Environmental costs(2)	5,688		4,176		4,992
Decoupling(3)	1,011		85		361
Pension balancing(4)	7,131		7,131		7,131
Income taxes	2,345		2,208		3,484
Other(5)	11,618		7,419		9,600
Total current	$	60,672	$	30,021	$	31,745
Non-current:
Unrealized loss on derivatives(1)	$	453	$	1,658	$	2,852
Pension balancing(4)	40,342		45,315		43,383
Income taxes	13,903		17,608		15,368
Pension and other postretirement benefit liabilities	160,385		164,091		170,812
Environmental costs(2)	85,423		81,757		90,623
Gas costs	5,742		94		3,925
Decoupling(3)	198		—		1,031
Other(5)	24,224		13,797		20,893
Total non-current	$	330,670	$	324,320	$	348,887
Other (NW Holdings)	40		38		40
Total non-current - NW Holdings	$	330,710	$	324,358	$	348,927

Schedule of Regulatory Liabilities


	Regulatory Liabilities
	June 30,				December 31,
In thousands	2021		2020		2020
NW Natural:
Current:
Gas costs	$	1,519	$	3,767	$	1,118
Unrealized gain on derivatives(1)	46,168		5,950		13,674
Decoupling(3)	5,821		11,498		11,793
Income taxes	8,217		7,098		8,217
Asset optimization revenue sharing	39,348		7,116		10,298
Other(5)	2,137		5,697		5,262
Total current	$	103,210	$	41,126	$	50,362
Non-current:
Gas costs	$	101	$	538	$	314
Unrealized gain on derivatives(1)	7,912		3,958		6,135
Decoupling(3)	652		2,108		1,723
Income taxes(6)	182,977		193,414		189,587
Accrued asset removal costs(7)	439,685		414,719		427,960
Other(5)	12,850		16,794		13,074
Total non-current - NW Natural	$	644,177	$	631,531	$	638,793
Other (NW Holdings)	869		869		870
Total non-current - NW Holdings	$	645,046	$	632,400	$	639,663

(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 NGD rates as part of the annual Purchased Gas Adjustment (PGA) mechanism when realized at settlement.

(2)Refer to footnote (3) of the Deferred Regulatory Asset table in Note 16 for a description of environmental costs.

(3)This deferral represents the margin adjustment resulting from differences between actual and expected volumes.

(4)Balance represents deferred net periodic benefit costs as approved by the OPUC.

(5)Balances consist of deferrals and amortizations under approved regulatory mechanisms and typically earn a rate of return or carrying charge.

(6)Balance represents excess deferred income tax benefits subject to regulatory flow-through.(7)Estimated costs of removal on certain regulated properties are collected through rates.

Accounts Receivable, Allowance for Credit Loss [Table Text Block]

The following table presents the activity related to the NW Holdings provision for uncollectible accounts by pool, substantially all of which is related to NW Natural's accounts receivable:


	As of						As of
	December 31, 2020		Six Months Ended June 30, 2021				June 30, 2021
In thousands	Beginning Balance		Provision recorded, net of adjustments		Write-offs recognized, net of recoveries		Ending Balance(1)
Allowance for uncollectible accounts:
Residential	$	2,153	$	1,294	$	(637)	$	2,810
Commercial	704		(233)		(265)		206
Industrial	142		(68)		5		79
Accrued unbilled and other	220		22		(54)		188
Total	$	3,219	$	1,015	$	(951)	$	3,283

(1) Includes $2.9 million that was deferred to a regulatory asset for costs associated with COVID-19 that are recoverable in future rates.

Schedule of Cash Flow, Supplemental Disclosures

The following table provides a reconciliation of the cash, cash equivalents and restricted cash balances at NW Holdings as of June 30, 2021 and 2020 and December 31, 2020:


	June 30,				December 31,
In thousands	2021		2020		2020
Cash and cash equivalents	$	20,084	$	137,057	$	30,168
Restricted cash included in other current assets	8,226		5,491		5,286
Cash, cash equivalents and restricted cash	$	28,310	$	142,548	$	35,454

The following table provides a reconciliation of the cash, cash equivalents and restricted cash balances at NW Natural as of June 30, 2021 and 2020 and December 31, 2020:


	June 30,				December 31,
In thousands	2021		2020		2020
Cash and cash equivalents	$	11,488	$	120,284	$	10,453
Restricted cash included in other current assets	8,226		5,491		5,286
Cash, cash equivalents and restricted cash	$	19,714	$	125,775	$	15,739