TRANSACTIONS WITH MAJOR CUSTOMERS AND AFFILIATES

Major Customers

Operating revenues received from two of our major customers in 2014, 2013 and 2012 are as follows (in millions):



	2014		2013		2012
Public Service Enterprise Group	$	115.3	$	130.7	$	127.4
National Grid	91.2		88.5		93.5

Affiliates

We are a participant in WPZ’s cash management program, and we make advances to and receive advances from WPZ. At December 31, 2014 and 2013, our advances to WPZ totaled approximately $306.9 million and $526.4 million, respectively. These advances are represented by demand notes and are classified as Current Assets in the accompanying Consolidated Balance Sheet. Advances are stated at the historical carrying amounts. Interest income is recognized when chargeable and collectability is reasonably assured. The interest rate on these intercompany demand notes is based upon the daily overnight investment rate paid on WPZ’s excess cash at the end of each month. At December 31, 2014, the interest rate was 0.01 percent.

Included in Operating Revenues in the accompanying Consolidated Statement of Comprehensive Income for 2014, 2013 and 2012 are revenues received from affiliates of $8.3 million, $16.3 million, and $17.0 million, respectively. The rates charged to provide sales and services to affiliates are the same as those that are charged to similarly-situated nonaffiliated customers.

Included in Cost of natural gas sales in the accompanying Consolidated Statement of Comprehensive Income for 2014, 2013 and 2012 is purchased gas cost from affiliates of $10.5 million, $6.9 million, and $3.9 million, respectively. All gas purchases are made at market or contract prices.

We have no employees. Services necessary to operate our business are provided to us by Williams and certain affiliates of Williams. We reimburse Williams and its affiliates for all direct and indirect expenses incurred or payments made (including salary, bonus, incentive compensation and benefits) in connection with these services. Employees of Williams also provide general, administrative and management services to us, and we are charged for certain administrative expenses incurred by Williams. These charges are either directly identifiable or allocated to our assets. Direct charges are for goods and services provided by Williams at our request. Allocated charges are based on a three-factor formula, which considers revenues; property, plant and equipment; and payroll. In management’s estimation, the allocation methodologies used are reasonable and result in a reasonable allocation to us of our costs of doing business incurred by Williams. We were billed $310.1 million, $310.3 million, and $320.1 million during 2014, 2013 and 2012, respectively, for these services. Such expenses are primarily included in Administrative and general and Operation and maintenance expenses in the accompanying Consolidated Statement of Comprehensive Income.

We provide services to certain of our affiliates. We recorded reductions in operating expenses for services provided to and reimbursed by our affiliates of $6.6 million, $7.1 million, and $4.5 million in 2014, 2013 and 2012, respectively. In 2013, we received $3.6 million of reimbursements from Williams Field Services Group, LLC (WFS), related to a capital project. Pursuant to construction agreements, we received pre-payments from WFS of $5.0 million and $2.3 million during 2014 and 2012, respectively, associated with capital projects. We received reimbursements totaling $3.1 million from Williams Gas Processing – Gulf Coast Company, L.P. in 2012 associated with costs related to a transfer and assignment agreement.

We made equity distributions of $411 million, $250 million and $246 million during 2014, 2013 and 2012, respectively. In January 2015, an additional distribution of $123 million was declared and paid.

During 2014, 2013 and 2012, our parent made contributions totaling $267 million, $264 million and $150 million, respectively, to us to fund a portion of our expenditures for additions to property, plant and equipment. In January 2015, our parent made an additional $158 million contribution. During 2012, we received a non-cash contribution of $1.5 million from our parent.