TRANSACTIONS WITH MAJOR CUSTOMERS AND AFFILIATES

Major Customers

Operating revenues received from three of our major customers in 2016, 2015 and 2014 are as follows (in millions):



	2016		2015		2014
Duke Energy Corporation	$	178.9	$	94.6	$	91.5
National Grid	166.3		129.6		91.2
Public Service Enterprise Group	143.6		110.2		115.3

Affiliates

We are a participant in WPZ’s cash management program, and we make advances to and receive advances from WPZ. At December 31, 2016 and 2015, our advances to WPZ totaled approximately $811.7 million and $64.6 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, 2016, the interest rate was 0.39 percent.

Included in Operating Revenues in the accompanying Consolidated Statement of Comprehensive Income for 2016, 2015 and 2014 are revenues received from affiliates of $11.2 million, $4.6 million, and $8.3 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 2016, 2015 and 2014 is purchased gas cost from affiliates of $4.3 million, $6.0 million, and $10.5 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 $318.4 million, $327.1 million, and $310.1 million during 2016, 2015 and 2014, 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. The amount billed to us during 2016 includes $7.4 million for severance and other related costs associated with a reduction in workforce primarily recognized in the first quarter.

We provide services to certain of our affiliates. We recorded reductions in operating expenses for services provided to and reimbursed by our affiliates of $4.3 million, $5.7 million, and $6.6 million in 2016, 2015 and 2014, respectively. Pursuant to construction agreements, we received pre-payments from WFS of $5.0 million during 2014 associated with capital projects. In 2015, we acquired certain assets from WFS for $1.9 million.

We made equity distributions of $440 million, $536 million and $411 million during 2016, 2015 and 2014, respectively. In January 2017, an additional distribution of $100 million was declared and paid.

During 2016, 2015 and 2014, our parent made contributions totaling $502 million, $652 million and $267 million, respectively, to us to fund a portion of our expenditures for additions to property, plant and equipment. In January 2017, our parent made an additional $110 million contribution to us.