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Transactions with Major Customers and Affiliates (Notes)
1 Months Ended
Feb. 28, 2021
Transactions with Major Customers and Affiliates [Abstract]  
Transactions with Major Customers and Affiliates TRANSACTIONS WITH MAJOR CUSTOMERS AND AFFILIATES
Major Customers
Operating revenues received from three of our major customers in 2020, 2019 and 2018 are as follows (in millions): 
202020192018
Dominion Energy, Inc.$248.5 $250.7 $113.5 
Duke Energy Corporation232.8222.5194.5
The Southern Company, Inc.216.4 216.1 166.2 
Affiliates
We are a participant in Williams' cash management program, and we make advances to and receive advances from Williams. At December 31, 2020, our advances to Williams totaled approximately $642.7 million. These advances are represented by demand notes and are classified as Receivables - Advances to affiliate in the accompanying Consolidated Balance Sheet. At December 31, 2019, our advances from Williams totaled approximately $252.5 million. These advances are represented by demand notes and are classified as Payables - Advances from affiliate in the accompanying Consolidated Balance Sheet. Advances are stated at the historical carrying amounts. Interest expense and income are 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 Williams' excess cash at the end of each month. At December 31, 2020, the interest rate was 0.01 percent.
Included in Operating Revenues in the accompanying Consolidated Statement of Comprehensive Income for 2020, 2019 and 2018 are revenues received from affiliates of $11.4 million, $10.5 million, and $10.1 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 2020, 2019 and 2018 is purchased gas cost from affiliates of $5.6 million, $4.0 million, and $5.4 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 $352.1 million, $412.4 million, and $395.3 million during 2020, 2019 and 2018, 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. Included in the amounts billed to us for 2019 are costs for severance and other related costs associated with a reduction in workforce of $28.8 million.
We provide services to certain of our affiliates. We recorded reductions in operating expenses for services provided to and reimbursed by our affiliates of $5.1 million, $4.4 million, and $4.7 million in 2020, 2019 and 2018, respectively.
We made equity distributions to our parent of $1,020 million, $824 million and $490 million during 2020, 2019 and 2018, respectively.
During 2020 and 2018, our parent made contributions totaling $115 million and $340 million, respectively, to us. During February 2021, our parent made an additional $60 million contribution to us.
During 2019, we recognized a non-cash distribution of $25 million to our parent related to a settlement agreement between Williams and a co-owner in our Atlantic Sunrise project. Although the agreement was between Williams and a third party, since the agreement was in part related to our Atlantic Sunrise project, the settlement amount was added to our Atlantic Sunrise project financing obligation. (See Note 5)
Effective December 31, 2019, we made a $36.6 million non-cash distribution to our parent of our interests in our wholly-owned subsidiaries, Cardinal Operating Company, LLC, Pine Needle Operating Company, LLC, TransCarolina LNG Company, LLC, and TransCardinal Company, LLC.