Significant Accounting Policies

3 Months Ended

Mar. 31, 2022

Accounting Policies [Abstract]

Schedule of Regulatory Assets

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

	Regulatory Assets
	March 31,				December 31,
In thousands	2022		2021		2021
NW Natural:
Current:
Unrealized loss on derivatives(1)	$	3,855	$	1,038	$	10,402
Gas costs	33,215		21,851		35,641
Environmental costs(2)	7,082		5,396		6,694
Decoupling(3)	469		4		969
Pension balancing(4)	7,131		7,131		7,131
Income taxes	2,299		2,273		2,568
Other(5)	10,430		10,096		8,986
Total current	$	64,481	$	47,789	$	72,391
Non-current:
Unrealized loss on derivatives(1)	$	592	$	1,272	$	412
Pension balancing(4)	35,974		41,111		38,302
Income taxes	11,129		13,895		12,609
Pension and other postretirement benefit liabilities	113,494		165,598		116,440
Environmental costs(2)	87,566		84,977		94,636
Gas costs	10,054		11,242		15,477
Decoupling(3)	—		2		—
Other(5)	38,673		20,555		36,663
Total non-current	$	297,482	$	338,652	$	314,539
Other (NW Holdings)	64		40		40
Total non-current - NW Holdings	$	297,546	$	338,692	$	314,579

Schedule of Regulatory Liabilities

	Regulatory Liabilities
	March 31,				December 31,
In thousands	2022		2021		2021
NW Natural:
Current:
Gas costs	$	1,922	$	2,575	$	70
Unrealized gain on derivatives(1)	84,438		19,914		48,130
Decoupling(3)	8,236		10,134		4,475
Income taxes	7,318		8,217		8,192
Asset optimization revenue sharing	5,186		35,878		45,124
Other(5)	4,691		4,596		6,290
Total current	$	111,791	$	81,314	$	112,281
Non-current:
Gas costs	$	532	$	634	$	250
Unrealized gain on derivatives(1)	6,955		3,087		10,730
Decoupling(3)	3,585		2,652		3,412
Income taxes(6)	176,138		182,511		181,404
Accrued asset removal costs(7)	450,973		434,489		445,952
Asset optimization revenue sharing	—		—		1,810
Other(5)	13,812		12,142		13,792
Total non-current - NW Natural	$	651,995	$	635,515	$	657,350
Other (NW Holdings)	982		869		982
Total non-current - NW Holdings	$	652,977	$	636,384	$	658,332

(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 the Environmental Cost Deferral and Recovery 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.

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 March 31, 2022 and 2021 and December 31, 2021:

	March 31,				December 31,
In thousands	2022		2021		2021
Cash and cash equivalents	$	24,325	$	17,907	$	18,559
Restricted cash included in other current assets	11,318		7,605		8,561
Cash, cash equivalents and restricted cash	$	35,643	$	25,512	$	27,120

The following table provides a reconciliation of the cash, cash equivalents and restricted cash balances at NW Natural as of March 31, 2022 and 2021 and December 31, 2021:

	March 31,				December 31,
In thousands	2022		2021		2021
Cash and cash equivalents	$	10,165	$	10,418	$	12,271
Restricted cash included in other current assets	11,318		7,605		8,561
Cash, cash equivalents and restricted cash	$	21,483	$	18,023	$	20,832

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, 2021		Three Months Ended March 31, 2022				March 31, 2022
In thousands	Beginning Balance		Provision recorded, net of adjustments		Write-offs recognized, net of recoveries		Ending Balance
Allowance for uncollectible accounts:
Residential	$	1,460	$	479	$	(22)	$	1,917
Commercial	178		137		(11)		304
Industrial	67		9		(26)		50
Accrued unbilled and other	313		(9)		(87)		217
Total	$	2,018	$	616	$	(146)	$	2,488