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REGULATORY ASSETS AND LIABILITIES (Notes) | 12 Months Ended
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Dec. 31, 2023
SCHEDULE OF REGULATED ASSETS AND LIABILITIES [Line Items] |
Schedule of Regulatory Assets and Liabilities | REGULATORY ASSETS AND LIABILITIES The tables below present a summary of regulatory assets and liabilities, net of amortization, for the periods indicated:
|  |  |  | December 31, 2023
|  | Remaining Recovery Period |  | Current |  | Noncurrent |  | Total
|  |  |  | (Thousands of dollars)
Winter weather event costs |  | (a) |  | $ | 22,633 |  |  | $ | 21,495 |  |  | $ | 44,128 |
Under-recovered purchased-gas costs |  | 1 year |  | 10,391 |  |  | — |  |  | 10,391 |
Pension and postemployment benefit costs |  | See Note 11 |  | 6,379 |  |  | 228,092 |  |  | 234,471 |
Reacquired debt costs |  | 6 years |  | 723 |  |  | 2,712 |  |  | 3,435 |
MGP remediation costs |  | 15 years |  | 98 |  |  | 31,893 |  |  | 31,991 |
Ad-valorem tax |  | 1 year |  | 14,533 |  |  | — |  |  | 14,533 |
WNA |  | 1 year |  | 11,404 |  |  | — |  |  | 11,404 |
Customer credit deferrals |  | 1 year |  | 6,184 |  |  | — |  |  | 6,184 |
Other |  | 1 to 18 years |  | 2,963 |  |  | 3,714 |  |  | 6,677 |
Total regulatory assets, net of amortization |  |  |  | 75,308 |  |  | 287,906 |  |  | 363,214 |
Income tax rate changes |  | (a) |  | — |  |  | (500,478) |  |  | (500,478) |
Over-recovered purchased-gas costs |  | 1 year |  | (66,901) |  |  | — |  |  | (66,901) |
Total regulatory liabilities |  |  |  | (66,901) |  |  | (500,478) |  |  | (567,379) |
Net regulatory assets and liabilities |  |  |  | $ | 8,407 |  |  | $ | (212,572) |  |  | $ | (204,165) |
(a) Recovery period varies by jurisdiction. See discussion below for additional information regarding our regulatory assets related to winter weather event costs and regulatory liabilities related to federal income tax rate changes.
|  |  |  | December 31, 2022
|  | Remaining Recovery Period |  | Current |  | Noncurrent |  | Total
|  |  |  | (Thousands of dollars)
Winter weather event costs |  | (a) |  | $ | 221,926 |  |  | $ | 36,291 |  |  | $ | 258,217 |
Under-recovered purchased-gas costs |  | 1 year |  | 19,755 |  |  | — |  |  | 19,755 |
Pension and postemployment benefit costs |  | See Note 11 |  | — |  |  | 258,257 |  |  | 258,257 |
Reacquired debt costs |  | 6 years |  | 812 |  |  | 3,347 |  |  | 4,159 |
MGP remediation costs |  | 15 years |  | 98 |  |  | 29,743 |  |  | 29,841 |
Ad-valorem tax |  | 1 year |  | 13,359 |  |  | — |  |  | 13,359 |
WNA |  | 1 year |  | 8,474 |  |  | — |  |  | 8,474 |
Customer credit deferrals |  | 1 year |  | 9,504 |  |  | — |  |  | 9,504 |
Other |  | 1 to 18 years |  | 1,644 |  |  | 3,193 |  |  | 4,837 |
Total regulatory assets, net of amortization |  |  |  | 275,572 |  |  | 330,831 |  |  | 606,403 |
Pension and other postemployment benefit costs |  | See Note 11 |  | (8,228) |  |  | — |  |  | (8,228) |
Income tax rate changes |  | (a) |  | — |  |  | (529,441) |  |  | (529,441) |
Over-recovered purchased-gas costs |  | 1 year |  | (39,639) |  |  | — |  |  | (39,639) |
Total regulatory liabilities |  |  |  | (47,867) |  |  | (529,441) |  |  | (577,308) |
Net regulatory assets and liabilities |  |  |  | $ | 227,705 |  |  | $ | (198,610) |  |  | $ | 29,095 |
(a) Recovery period varies by jurisdiction. See discussion below for additional information regarding our regulatory assets related to winter weather event costs and regulatory liabilities related to federal income tax rate changes.
Regulatory assets in our consolidated balance sheets, as authorized by various regulatory authorities, are probable of recovery. Base rates and certain riders are designed to provide a recovery of costs during the period such rates are in effect, but do not generally provide for a return on investment for amounts we have deferred as regulatory assets. All of our regulatory assets are subject to review by the respective regulatory authorities during future regulatory proceedings. Winter weather event costs - In February 2021, the U.S. experienced Winter Storm Uri, a historic winter weather event impacting supply, market pricing and demand for natural gas in a number of states, including our service territories of Oklahoma, Kansas, and Texas. During this time, the governors of Oklahoma, Kansas, and Texas each declared a state of emergency, and certain regulatory agencies issued emergency orders that impacted the utility and natural gas industries, including statewide utility curtailment programs and orders requiring jurisdictional natural gas and electric utilities to do all things possible and necessary to ensure that natural gas and electricity utility services continued to be provided to their customers. Due to the historic nature of this winter weather event, we experienced unforeseeable and unprecedented market pricing for natural gas in our Oklahoma, Kansas, and Texas jurisdictions, which resulted in aggregated natural gas purchases for the month of February 2021 of approximately $2.1 billion. Oklahoma - In August 2022, the ODFA completed the issuance of $1.4 billion in ratepayer-backed bonds with varying scheduled final maturities over 30 years, consistent with the OCC financing order. The bonds are limited and special revenue obligations of the ODFA, payable solely from the securitization bond collateral and are not an obligation of Oklahoma Natural Gas or any of its affiliates. The proceeds received by Oklahoma Natural Gas were approximately $1.3 billion, which represents the amount of the securitization bonds issued by the ODFA less issuance costs. The receipt of these proceeds represents Oklahoma Natural Gas’ recovery of the approximately $1.3 billion of authorized extraordinary natural gas purchase costs and other operational costs incurred during Winter Storm Uri, as well as carrying costs. Beginning September 1, 2022, Oklahoma Natural Gas acts as a servicer, with responsibility for collecting the securitization charges from Oklahoma customers that are then submitted to the ODFA to repay the securitization bonds. The collection and remittance of these funds on behalf of the ODFA are recorded in other current liabilities in our consolidated balance sheets. Kansas - In November 2022, KGSS-I issued $336 million of 5.486 percent Securitized Utility Tariff Bonds. KGSS-I used the proceeds from the issuance to purchase the Securitized Utility Tariff Property from Kansas Gas Service, pay for debt issuance costs, and reimburse Kansas Gas Service for upfront securitization costs paid by Kansas Gas Service on behalf of KGSS-I. See Notes 1 and 5 for additional information about the Securitized Utility Tariff Bonds and Note 17 for additional information about the securitization transaction in Kansas. Texas - Pursuant to securitization legislation enacted in Texas as a result of Winter Storm Uri and a June 2021 RRC Notice to Gas Utilities, Texas Gas Service submitted an application to the RRC in July 2021, for an order authorizing the amount of extraordinary costs for recovery and other such specifications necessary for the issuance of securitized bonds. In February 2022, the RRC issued a single financing order for Texas Gas Service and other natural gas utilities in Texas participating in the securitization process, which included a determination that the approved costs will be collected from customers over a period of not more than 30 years. The TPFA formed the TNG Corporation, a new independent public authority, to issue the securitized bonds. In March 2023, the TNG Corporation completed the issuance of the Customer Rate Relief (Winter Storm Uri), Taxable Series 2023 Bonds and we received our portion of the net proceeds, which was approximately $197 million. The proceeds were used to repay certain indebtedness and for general corporate purposes. Interest costs that exceeded the amount securitized have been deferred and will be addressed in the next general rate proceeding in each applicable jurisdiction in Texas. At December 31, 2023, Texas Gas Service had deferred approximately $26.6 million in extraordinary costs associated with Winter Storm Uri attributable to its former West Texas service area. Pursuant to the approved settlement order, Texas Gas Service began collecting the extraordinary costs, including carrying costs, from those customers in January 2022. GAAP does not provide comprehensive recognition and measurement guidance for many forms of government assistance received by business entities. Accordingly, we have accounted for the proceeds received from the ODFA and TNG Corporation by analogy to International Accounting Standards No. 20, “Accounting for Government Grants and Disclosure of Government Assistance” consistent with a grant related to income. The proceeds received and the corresponding recognition of the deferred regulatory asset have been reflected in cost of natural gas in our consolidated statements of income. As the proceeds reflect the recovery of our winter weather event regulatory asset, there was no material impact to earnings. The deferred winter weather event costs also include invoiced costs for natural gas purchases during Winter Storm Uri that have not been paid as we work with our suppliers for Kansas and Texas to resolve discrepancies in invoiced amounts. These amounts may be adjusted as the differences with suppliers are resolved. Settlements of these amounts are recoverable through the purchased gas cost mechanisms in the respective state. Future adjustments to the amounts are not expected to have a material impact on earnings. Other regulatory assets and liabilities - Purchased-gas costs represent the natural gas costs that have been over- or under-recovered from customers through the purchased-gas cost adjustment mechanisms, and includes natural gas utilized in our operations and premiums paid and any cash settlements received from our purchased natural gas call options. The OCC, KCC and regulatory authorities in Texas have approved the recovery of pension costs and other postemployment benefits costs through rates for Oklahoma Natural Gas, Kansas Gas Service and Texas Gas Service, respectively. The costs recovered through rates are based on the net periodic benefit cost for defined benefit pension and other postemployment costs. Differences, if any, between the net periodic benefit cost, net of deferrals, and the amount recovered through rates are reflected in earnings. We historically have recovered defined benefit pension and other postemployment benefit costs through rates. We believe it is probable that regulators will continue to include the net periodic pension and other postemployment benefit costs in our cost of service. We amortize reacquired debt costs in accordance with the accounting guidelines prescribed by the OCC and the KCC. See Note 15 for additional information regarding our regulatory assets for MGP remediation costs. Ad-valorem tax represents the difference in Kansas Gas Service’s taxes incurred each year above or below the amount approved in base rates. This difference is deferred as a regulatory asset or liability for a 12-month period. Kansas Gas Service then applies an adjustment to customers’ bills to refund the over-collected revenue or bill the under-collected revenue over the subsequent 12 months. Weather normalization represents revenue over- or under-recovered through the WNA rider in Kansas. This amount is deferred as a regulatory asset or liability for a 12-month period. Kansas Gas Service then applies an adjustment to customers’ bills for 12 months to refund the over-collected revenue or bill the under-collected revenue. The customer credit deferrals and the noncurrent regulatory liability for income tax rate changes represents deferral of the effects of enacted federal and state income tax rate changes on our ADIT and the effects of these changes on our rates. See Note 12 for additional information regarding the impact of income tax rate changes. Recovery through rates resulted in amortization of regulatory assets of approximately $14.7 million, $9.4 million and $5.5 million for the years ended December 31, 2023, 2022 and 2021, respectively.

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- Definition [Line Items] for Tabular disclosure of assets and liabilities that result from rate actions of a regulator. Regulatory assets are created when regulatory agencies permit public utilities to defer certain costs included in rate-setting to the balance sheet. Rate actions of a regulator can impose a liability on a regulated enterprise resulting in a regulatory liability. + References No definition available. + Details
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- Definition The entire disclosure for detailed information about regulatory assets and liabilities, including current and noncurrent assets created when regulatory agencies permit the deferral of costs to the balance sheet that would otherwise be required to appear on the company's income statement and would be charged against current expenses or revenues, as well as current and noncurrent liabilities created when regulatory agencies permit. + References No definition available. + Details
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