Note 6: Bad Debts

Unitil's distribution utilities are authorized by regulators to recover the costs of their energy commodity portion of bad debts through rate mechanisms. In 2011, 2010 and 2009, the Company recorded provisions for the energy commodity portion of bad debts of $1.8 million, $1.4 million and $1.9 million, respectively. These provisions were recognized in Purchased Electricity and Purchased Gas expense as the associated electric and gas utility revenues were billed. Purchased Electricity and Purchased Gas costs are recovered from customers through periodic rate reconciling mechanisms.

The following table shows the balances and activity in the Company's Allowance for Doubtful Accounts for 2009 – 2011 ($ millions):

ALLOWANCE FOR DOUBTFUL ACCOUNTS


	Balance at Beginning of Period		(a) Other		Provision		Recoveries		Accounts Written Off		Balance at End of Period
Year Ended December 31, 2011
Electric	$	1.8	$	—	$	2.1	$	0.2	$	2.4	$	1.7
Gas		0.7		—		2.2		0.3		2.7		0.5
Other		0.1		—		—		—		—		0.1

	$	2.6	$	—	$	4.3	$	0.5	$	5.1	$	2.3

Year Ended December 31, 2010
Electric	$	1.7	$	—	$	2.0	$	0.2	$	2.1	$	1.8
Gas		0.7		—		2.5		0.4		2.9		0.7
Other		0.1		—		—		—		—		0.1

	$	2.5	$	—	$	4.5	$	0.6	$	5.0	$	2.6

Year Ended December 31, 2009
Electric	$	1.1	$	—	$	2.3	$	0.2	$	1.9	$	1.7
Gas		1.8		0.5		1.4		0.3		3.3		0.7
Other		0.1		—		—		—		—		0.1

	$	3.0	$	0.5	$	3.7	$	0.5	$	5.2	$	2.5

^(a)	Includes Allowance for Doubtful Accounts of Northern Utilities and Granite State, which were acquired on December 1, 2008.