Note 4: Allowance for Doubtful Accounts

Unitil’s distribution utilities are authorized by regulators to recover the costs of their energy commodity portion of bad debts through rate mechanisms. In 2016, 2015 and 2014, the Company recorded provisions for the energy commodity portion of bad debts of $1.6 million, $2.6 million and $2.6 million, respectively. These provisions were recognized in Cost of Gas Sales and Cost of Electric Sales expense as the associated electric and gas utility revenues were billed. Cost of Gas Sales and Cost of Electric Sales costs are recovered from customers through periodic rate reconciling mechanisms. Also, the electric and gas divisions of Fitchburg are authorized to recover through rates past due amounts associated with hardship accounts that are protected from shut-off.

The following table shows the balances and activity in the Company’s Allowance for Doubtful Accounts for 2014—2016 (millions):

ALLOWANCE FOR DOUBTFUL ACCOUNTS


	Balance at Beginning of Period		Provision		Recoveries		Accounts Written Off		Balance at End of Period
Year Ended December 31, 2016
Electric	$	0.6	$	2.9	$	0.3	$	3.0	$	0.8
Gas		0.5		1.7		0.3		2.3		0.2
Other		0.1		—		—		—		0.1

	$	1.2	$	4.6	$	0.6	$	5.3	$	1.1

Year Ended December 31, 2015
Electric	$	1.3	$	2.5	$	0.3	$	3.5	$	0.6
Gas		0.4		2.8		0.4		3.1		0.5
Other		0.1		—		—		—		0.1

	$	1.8	$	5.3	$	0.7	$	6.6	$	1.2

Year Ended December 31, 2014
Electric	$	1.3	$	2.9	$	0.3	$	3.2	$	1.3
Gas		0.2		3.1		0.3		3.2		0.4
Other		0.1		—		—		—		0.1

	$	1.6	$	6.0	$	0.6	$	6.4	$	1.8