Commitments and Contigencies

12 Months Ended

Dec. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

COMMITMENTS AND CONTINGENCIES

Gas Purchase Agreements

NW Natural enters into short-term and long-term physical baseload gas purchase agreements. The majority of our gas purchase agreements include year-round, winter-only, summer-only, and monthly purchases.

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 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. The parties that we release this capacity to make payments directly to the related pipelines.

The aggregate amounts of these agreements at NW Natural were as follows at December 31, 2023:

In thousands	Gas Purchase Agreements(1)		Pipeline Capacity Purchase Agreements		Pipeline Capacity Release Agreements
2024	$	303,682	$	78,907	$	7,543
2025	34,457		81,114		3,455
2026	34,586		66,972		—
2027	33,830		67,123		—
2028	33,980		63,812		—
Thereafter	208,426		377,175		—
Total	648,961		735,103		10,998
Less: Amount representing interest	96,491		183,620		373
Total at present value	$	552,470	$	551,483	$	10,625

(1) Gas purchase agreements include environmental attributes of RNG.

Total fixed charges under capacity purchase agreements were $87.0 million for 2023, $90.2 million for 2022, and $82.9 million for 2021, of which $8.2 million, $8.3 million, and $7.7 million, respectively, related to capacity releases which third parties paid directly to the related pipelines. 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 17 for a discussion of environmental commitments and contingencies.