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Debt
 12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
Debt [Text Block] DEBT
Short-Term Debt
The primary source of short-term liquidity for NW Holdings is cash balances, dividends from its operating subsidiaries, in particular NW Natural, available cash from a multi-year credit facility, and short-term credit facilities it may enter into from time to time.

The primary source of short-term liquidity for NW Natural is from the sale of commercial paper, available cash from a multi-year credit facility, and short-term credit facilities it may enter into from time to time. In addition to issuing commercial paper or entering into bank loans to meet working capital requirements, including seasonal requirements to finance gas purchases and accounts receivable, short-term debt may also be used to temporarily fund capital requirements. For NW Natural, commercial paper and bank loans are periodically refinanced through the sale of long-term debt or equity contributions from NW Holdings. Commercial paper, when outstanding, is sold through two commercial banks under an issuing and paying agency agreement and is supported by one or more unsecured revolving credit facilities. See “Credit Agreements” below.

In June 2021, NW Natural entered into a $100.0 million 364-Day Term Loan Credit Agreement (Term Loan) and borrowed the full amount. All principal and interest under the Term Loan was repaid in December 2021.

At December 31, 2021 and 2020, NW Natural's short-term debt outstanding of $245.5 million and $231.5 million, respectively, consisted of commercial paper borrowings. At December 31, 2021 and 2020, NW Holdings' short-term debt outstanding of $389.5 million and $304.5 million, respectively, consisted of the commercial paper outstanding at NW Natural and $144.0 million and $73.0 million, respectively, of balances outstanding under the credit agreement at NW Holdings. The weighted average interest rate of commercial paper at NW Natural at December 31, 2021 and 2020 was 0.3% and 0.4%, respectively. The
weighted average interest rate on the credit agreement at NW Holdings at December 31, 2021 and 2020 was 1.1% and 1.2%, respectively.

The carrying cost of commercial paper approximates fair value using Level 2 inputs. See Note 2 for a description of the fair value hierarchy. At December 31, 2021, NW Natural's commercial paper had a maximum remaining maturity of 63 days and an average remaining maturity of 34 days.

Credit Agreements
NW Holdings
In November 2021, NW Holdings entered into an amended and restated $200.0 million credit agreement, with a feature that allows NW Holdings to request increases in the total commitment amount, up to a maximum of $300.0 million. The maturity date of the agreement is November 3, 2026, with an available extension of commitments for two additional one-year periods, subject to lender approval.
The NW Holdings credit agreement permits the issuance of letters of credit in an aggregate amount of up to $40.0 million. The principal amount of borrowings under the credit agreement is due and payable on the maturity date. The credit agreement requires NW Holdings to maintain a consolidated indebtedness to total capitalization ratio of 70% or less. Failure to comply with this covenant would entitle the lenders to terminate their lending commitments and accelerate the maturity of all amounts outstanding. NW Holdings was in compliance with this covenant at December 31, 2021 and 2020.

The NW Holdings credit agreement also requires NW Holdings to maintain debt ratings (which are defined by a formula using NW Natural's credit ratings in the event NW Holdings does not have a credit rating) with Standard & Poor's (S&P) and Moody's Investors Service, Inc. (Moody’s) and notify the lenders of any change in its senior unsecured debt ratings or senior secured debt ratings, as applicable, by such rating agencies. A change in NW Holdings' debt ratings by S&P or Moody’s is not an event of default, nor is the maintenance of a specific minimum level of debt rating a condition of drawing upon the credit agreement. Rather, interest rates on any loans outstanding under the credit agreements are tied to debt ratings and therefore, a change in the debt rating would increase or decrease the cost of any loans under the credit agreements when ratings are changed. NW Holdings does not currently maintain ratings with S&P or Moody's.

There was $144.0 million and $73.0 million of outstanding balances under the NW Holdings agreement at December 31, 2021 and 2020, respectively. No letters of credit were issued or outstanding under the NW Holdings agreement at December 31, 2021 and 2020.

NW Natural
In November 2021, NW Natural entered into an amended and restated credit agreement for unsecured revolving loans totaling $400.0 million, with a feature that allows NW Natural to request increases in the total commitment amount, up to a maximum of $600.0 million. The maturity date of the agreement is November 3, 2026 with an available extension of commitments for two additional one-year periods, subject to lender approval. The credit agreement permits the issuance of letters of credit in an aggregate amount of up to $60.0 million. The principal amount of borrowings under the credit agreement is due and payable on the maturity date. There were no outstanding balances under NW Natural's credit agreement and no letters of credit issued or outstanding at December 31, 2021 and 2020.

NW Natural's credit agreement require NW Natural to maintain a consolidated indebtedness to total capitalization ratio of 70% or less. Failure to comply with this covenant would entitle the lenders to terminate their lending commitments and accelerate the maturity of all amounts outstanding. NW Natural was in compliance with this covenant at December 31, 2021 and 2020.

The NW Natural credit agreement also requires NW Natural to maintain credit ratings with S&P and Moody’s and notify the lenders of any change in NW Natural's senior unsecured debt ratings or senior secured debt ratings, as applicable, by such rating agencies. A change in NW Natural's debt ratings by S&P or Moody’s is not an event of default, nor is the maintenance of a specific minimum level of debt rating a condition of drawing upon the credit agreement. Rather, interest rates on any loans outstanding under the credit agreement are tied to debt ratings and therefore, a change in the debt rating would increase or decrease the cost of any loans under the credit agreement when ratings are changed.

Long-Term Debt
NW Holdings
At December 31, 2021 and 2020, NW Holdings had long-term debt outstanding of $1,044.9 million and $955.4 million, respectively; which included $8.3 million and $7.5 million of unamortized debt issuance costs, respectively. NW Holdings' long-term debt is primarily comprised of debt held at its wholly-owned subsidiaries NW Natural (shown below) and NWN Water. Long-term debt at NWN Water is primarily comprised of a five-year term loan agreement for $55.0 million, due in 2026. NWN Water entered into this agreement in June 2021 and the loan carried an interest rate of 0.90% at December 31, 2021, which is based upon the one-month LIBOR rate. The loan is guaranteed by NW Holdings and requires NW Holdings to maintain a consolidated indebtedness to total capitalization ratio of 70% or less. Failure to comply with this covenant would entitle the lenders to terminate their lending commitments and accelerate the maturity of all amounts outstanding. NW Holdings was in compliance with this covenant at December 31, 2021, with a consolidated indebtedness to total capitalization ratio of 60.5%.
In June 2019, NW Natural Water, a wholly-owned subsidiary of NW Holdings, entered into a two-year term loan agreement for $35.0 million. The loan was repaid in June 2021 upon its maturity date.

NW Natural
NW Natural's issuance of First Mortgage Bonds, which includes NW Natural's medium-term notes, under the Mortgage and Deed of Trust (Mortgage) is limited by eligible property, adjusted net earnings, and other provisions of the Mortgage. The Mortgage constitutes a first mortgage lien on certain gas properties owned from time to time by NW Natural, including substantially all of NW Natural's NGD property.

Maturities and Outstanding Long-Term Debt
Retirement of long-term debt for each of the annual periods through December 31, 2026 and thereafter are as follows: 
In thousandsLong-term debt maturities
NW Natural:
2022$— 
202390,000 
2024— 
202530,000 
202655,000 
Thereafter 819,700 
Total$994,700 

The following table presents debt outstanding as of December 31:
In thousands20212020
NW Natural:
First Mortgage Bonds:
9.050% Series due 2021
$— $10,000 
3.176% Series due 2021
— 50,000 
3.542% Series due 2023
50,000 50,000 
5.620% Series due 2023
40,000 40,000 
7.720% Series due 2025
20,000 20,000 
6.520% Series due 2025
10,000 10,000 
7.050% Series due 2026
20,000 20,000 
3.211% Series due 2026
35,000 35,000 
7.000% Series due 2027
20,000 20,000 
2.822% Series due 2027
25,000 25,000 
6.650% Series due 2027
19,700 19,700 
6.650% Series due 2028
10,000 10,000 
3.141% Series due 2029
50,000 50,000 
7.740% Series due 2030
20,000 20,000 
7.850% Series due 2030
10,000 10,000 
5.820% Series due 2032
30,000 30,000 
5.660% Series due 2033
40,000 40,000 
5.250% Series due 2035
10,000 10,000 
4.000% Series due 2042
50,000 50,000 
4.136% Series due 2046
40,000 40,000 
3.685% Series due 2047
75,000 75,000 
4.110% Series due 2048
50,000 50,000 
3.869% Series due 2049
90,000 90,000 
3.600% Series due 2050
150,000 150,000 
3.078% Series due 2051
130,000 — 
Long-term debt, gross994,700 924,700 
Less: current maturities— 60,000 
Total long-term debt$994,700 $864,700 
Fair Value of Long-Term Debt
NW Holdings' and NW Natural's outstanding debt does not trade in active markets. The fair value of debt is estimated using the value of outstanding debt at natural gas distribution companies with similar credit ratings, terms, and remaining maturities to NW Holdings' and NW Natural's debt that actively trade in public markets. Substantially all outstanding debt at NW Holdings is comprised of NW Natural debt. These valuations are based on Level 2 inputs as defined in the fair value hierarchy. See Note 2.

The following table provides an estimate of the fair value of long-term debt, including current maturities of long-term debt, using market prices in effect on the valuation date:
December 31,
In thousands20212020
NW Natural:
Gross long-term debt$994,700 $924,700 
Unamortized debt issuance costs(8,205)(7,480)
Carrying amount$986,495 $917,220 
Estimated fair value(1)
$1,110,741 $1,097,348 
NW Holdings:
Gross long-term debt$1,053,241 $962,905 
Unamortized debt issuance costs(8,309)(7,480)
Carrying amount$1,044,932 $955,425 
Estimated fair value(1)
$1,174,500 $1,136,311 
(1) Estimated fair value does not include unamortized debt issuance costs.