Materials, Supplies and Inventories

6 Months Ended

Jun. 30, 2015

MATERIALS, SUPPLIES AND INVENTORIES

Our inventory consists of:



Materials, Supplies and Inventories	June 30, 2015		December 31, 2014
	(Millions of Dollars)

Fossil Fuel	$	182.4	$	125.6
Materials and Supplies	249.7		150.2
Natural Gas in Storage	130.4		124.8
Total	$	562.5	$	400.6

Substantially all fossil fuel, materials and supplies, and natural gas in storage inventories are recorded using the weighted-average cost method of accounting.

PGL and NSG price natural gas storage injections at the calendar year average of the costs of natural gas supply purchased. Withdrawals from storage are priced on the Last-in, First-out (LIFO) cost method. For interim periods, the difference between current projected replacement cost and the LIFO cost for quantities of natural gas temporarily withdrawn from storage is recorded as a temporary LIFO liquidation debit or credit. The amounts as of June 30, 2015 were as follows:



		As of June 30, 2015
	Balance Sheet Presentation	PGL		NSG
		(Millions of Dollars)

Temporary LIFO liquidation debit	Other current assets	$	21.0	$	—
Temporary LIFO liquidation credit	Other current Liabilities	$	—	$	5.2

Due to seasonality requirements, PGL and NSG expect these interim reductions in LIFO layers to be replenished by year end.