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Regulatory Matters: | 9 Months Ended
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Sep. 30, 2021
Regulatory Assets and Liabilities Disclosure [Abstract] |
Regulatory Matters | Regulatory Matters We had the following regulatory assets and liabilities (in thousands):
| As of | As of
| September 30, 2021 | December 31, 2020
Regulatory assets |  |
Winter Storm Uri (a) | $ | 532,766 |  | $ | — |
Deferred energy and fuel cost adjustments (b) | 59,741 |  | 39,035 |
Deferred gas cost adjustments (b) | 6,076 |  | 3,200 |
Gas price derivatives (b) | — |  | 2,226 |
Deferred taxes on AFUDC (c) | 7,537 |  | 7,491 |
Employee benefit plans and related deferred taxes (d) | 114,234 |  | 116,598 |
Environmental (b) | 1,395 |  | 1,413 |
Loss on reacquired debt (b) | 21,460 |  | 22,864 |
Deferred taxes on flow through accounting (d) | 54,199 |  | 47,515 |
Decommissioning costs (b) | 6,583 |  | 8,988 |
Gas supply contract termination (b) | — |  | 2,524 |
Other regulatory assets (b) | 26,064 |  | 26,404 |
Total regulatory assets | 830,055 |  | 278,258 |
Less current regulatory assets | (213,031) |  | (51,676) |
Regulatory assets, non-current | $ | 617,024 |  | $ | 226,582 |
Regulatory liabilities |  |
Deferred energy and gas costs (b) | $ | 9,408 |  | $ | 13,253 |
Gas price derivatives (b) | 13,234 |  | — |
Employee benefit plan costs and related deferred taxes (d) | 39,203 |  | 40,256 |
Cost of removal (b) | 181,180 |  | 172,902 |
Excess deferred income taxes (d) | 266,477 |  | 285,259 |
Other regulatory liabilities (d) | 16,915 |  | 21,050 |
Total regulatory liabilities | 526,417 |  | 532,720 |
Less current regulatory liabilities | (30,156) |  | (25,061) |
Regulatory liabilities, non-current | $ | 496,261 |  | $ | 507,659 |
__________ (a) Timing of Winter Storm Uri incremental cost recovery and associated carrying costs are subject to pending applications with our utility commissions. See further information below. (b) Recovery of costs, but we are not allowed a rate of return. (c) In addition to recovery of costs, we are allowed a rate of return. (d) In addition to recovery or repayment of costs, we are allowed a return on a portion of this amount or a reduction in rate base. Regulatory Activity Except as discussed below, there have been no other significant changes to our Regulatory Matters from those previously disclosed in Note 2 of the Notes to the Consolidated Financial Statements in our 2020 Annual Report on Form 10-K. Winter Storm Uri In February 2021, a prolonged period of historic cold temperatures across the central United States, which covered all of our Utilities’ service territories, caused a substantial increase in heating and energy demand and contributed to unforeseeable and unprecedented market prices for natural gas and electricity. As a result of Winter Storm Uri, we incurred significant incremental fuel, purchased power and natural gas costs. Our Utilities submitted Winter Storm Uri cost recovery applications in our state jurisdictions seeking to recover $546 million of these incremental costs through separate tracking mechanisms over a weighted-average recovery period of 3.7 years. These incremental cost estimates are subject to adjustments as final decisions are issued by the respective utility commissions. In these applications, we seek approval to recover carrying costs. For the nine months ended September 30, 2021, $1.8 million of carrying costs were accrued and recorded to a regulatory asset. We are also seeking recovery of $13 million of previously disclosed Winter Storm Uri incremental costs through our existing regulatory mechanisms. To date, Nebraska Gas and South Dakota Electric received commission approval of their Winter Storm Uri cost recovery applications. Additionally, Arkansas Gas, Iowa Gas and Wyoming Gas received approval for interim cost recovery subject to a final decision on carrying costs and recovery periods at a later date. In October 2021, Wyoming Gas filed a settlement agreement for their application with final rates to be implemented January 1, 2022. The settlement is subject to final approval by the commission. For the nine months ended September 30, 2021, our Utilities collected $15 million of Winter Storm Uri incremental costs and carrying costs from customers. TCJA On December 30, 2020, an administrative law judge approved a settlement of Colorado Electric’s plan to provide $9.3 million of TCJA-related bill credits to its customers. The bill credits, which represent a disposition of excess deferred income tax benefits resulting from the TCJA, were delivered to customers in February 2021. The settlement agreement further provided for Colorado Electric to deliver annual bill credits to customers, starting in April 2021, until remaining excess deferred income tax regulatory liabilities associated with the TCJA are fully amortized. In April 2021, Colorado Electric delivered $0.9 million of TCJA-related bill credits to customers. On January 26, 2021, the NPSC approved Nebraska Gas’s plan to provide $2.9 million of TCJA-related bill credits to its customers. The bill credits, which represent a disposition of excess deferred income tax benefits resulting from the TCJA, were delivered to customers in June 2021. These Colorado Electric and Nebraska Gas bill credits, which resulted in a reduction in revenue, were offset by a reduction in income tax expense and resulted in a minimal impact to Net income for the three and nine months ended September 30, 2021. As part of the settlement agreement discussed further below, Kansas Gas will deliver $3.0 million of TCJA and state tax reform benefits to customers, annually, for each of the next three years starting in 2022 (approximately $9.1 million of total benefits expected to be delivered). Colorado Gas Rate Review On June 1, 2021, Colorado Gas filed a rate review with the CPUC seeking recovery of significant infrastructure investments in its 7,000-mile natural gas pipeline system. On October 5, 2021, Colorado Gas reached a settlement agreement with the CPUC Staff and various intervenors for a general rate increase. The settlement agreement is subject to review and approval by an ALJ and the CPUC. If approved, the settlement is expected to generate $6.5 million of new annual revenue with new rates effective January 1, 2022. The new revenue is based on a return on equity of 9.2% and a capital structure of 50.3% equity and 49.7% debt. SSIR On September 11, 2020, in accordance with the final Order from an earlier rate review filed on February 1, 2019, Colorado Gas filed a SSIR proposal with the CPUC that would recover safety and integrity focused investments in its system for five years. On July 6, 2021, Colorado Gas received approval from the CPUC for its SSIR proposal that will recover safety and integrity focused system investments for three years effective January 1, 2022. The return on SSIR investments will be the current weighted-average cost of long-term debt. Iowa Gas Rate Review On June 1, 2021, Iowa Gas filed a rate review with the IUB seeking recovery of significant infrastructure investments in its 5,000-mile natural gas pipeline system. The rate review requests shifting $2.2 million of rider revenue to base rates and $8.3 million in additional new annual revenue with a capital structure of 50% equity and 50% debt and a return on equity of 10.15%. Iowa statute allows implementation of interim rates 10 days after filing a rate review and Iowa Gas implemented interim rates effective on June 11, 2021. The request seeks to finalize rates in the first quarter of 2022. Kansas Gas Rate Review On May 7, 2021, Kansas Gas filed a rate review and rider renewal with the KCC seeking recovery of significant infrastructure investments in its 4,600-mile natural gas pipeline system. On October 8, 2021, Kansas Gas reached a Global Settlement agreement with KCC Staff and various intervenors for a general rate increase and renewal of its safety and integrity rider. The settlement agreement is subject to review and approval by the KCC. If approved, the settlement will shift $6.6 million of rider revenue to base rates, which are expected to be effective January 1, 2022, and also allow rider renewal for at least five more years. Nebraska Gas Jurisdictional Consolidation and Rate Review On January 26, 2021, Nebraska Gas received approval from the NPSC to consolidate rate schedules into a new, single statewide structure and recover infrastructure investments in its 13,000-mile natural gas pipeline system. Final rates were enacted on March 1, 2021, which replaced interim rates effective September 1, 2020. The approval shifted $4.6 million of SSIR revenue to base rates and is expected to generate $6.5 million in new annual revenue with a capital structure of 50% equity and 50% debt and an authorized return on equity of 9.5%. The approval also includes an extension of the SSIR for five years and an expansion of this mechanism across the consolidated jurisdictions.

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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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