SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

Jun. 30, 2018

Components of Gas and Electric Operating Revenue

In the following tables, revenue is classified by the types of goods/services rendered and market/customer type. The lower revenues reported in the three and six months ended 2018 to account for the reduction in the corporate income tax rate under the Tax Cuts and Jobs Act of 2017 (TCJA) are shown separately in the tables below for informational purposes.


	Three Months Ended June 30, 2018
Gas and Electric Operating Revenues ($ millions):	Gas			Electric			Total
Billed and Unbilled Revenue:
Residential	$	15.8		$	27.5		$	43.3
C&I		22.9			24.0			46.9
Other		2.4			2.9			5.3
Revenue Reductions – TCJA		(1.0	)		(0.7	)		(1.7	)

Total Billed and Unbilled Revenue		40.1			53.7			93.8
Rate Adjustment Mechanism Revenue		(5.4	)		(5.0	)		(10.4	)

Total Gas and Electric Operating Revenues	$	34.7		$	48.7		$	83.4


	Three Months Ended June 30, 2017
Gas and Electric Operating Revenues ($ millions):	Gas			Electric			Total
Billed and Unbilled Revenue:
Residential	$	15.0		$	23.6		$	38.6
C&I		20.3			20.6			40.9
Other		1.5			1.5			3.0

Total Billed and Unbilled Revenue		36.8			45.7			82.5
Rate Adjustment Mechanism Revenue		(4.8	)		1.7			(3.1	)

Total Gas and Electric Operating Revenues	$	32.0		$	47.4		$	79.4


	Six Months Ended June 30, 2018
Gas and Electric Operating Revenues ($ millions):	Gas			Electric			Total
Billed and Unbilled Revenue:
Residential	$	51.7		$	62.0		$	113.7
C&I		72.8			48.9			121.7
Other		9.5			5.9			15.4
Revenue Reductions – TCJA		(2.5	)		(1.5	)		(4.0	)

Total Billed and Unbilled Revenue		131.5			115.3			246.8
Rate Adjustment Mechanism Revenue		(9.8	)		(9.1	)		(18.9	)

Total Gas and Electric Operating Revenues	$	121.7		$	106.2		$	227.9


	Six Months Ended June 30, 2017
Gas and Electric Operating Revenues ($ millions):	Gas			Electric		Total
Billed and Unbilled Revenue:
Residential	$	45.9		$	51.0	$	96.9
C&I		62.3			40.7		103.0
Other		7.5			3.0		10.5

Total Billed and Unbilled Revenue		115.7			94.7		210.4
Rate Adjustment Mechanism Revenue		(8.9	)		2.2		(6.7	)

Total Gas and Electric Operating Revenues	$	106.8		$	96.9	$	203.7

Schedule of Other Operating Revenues and Operating Expenses

If ASU 2014-09 had been in effect for the three and six months ended June 30, 2017, the result would have been corresponding reductions of $0.3 million and $0.5 million, respectively, in both “Other” in in the “Operating Revenues” section of the Consolidated Statements of Earnings and “Operation and Maintenance” in the “Operating Expenses” section of the Company’s Consolidated Statements of Earnings as shown in the tables below.


	Three Months Ended June 30,
	As Reported		If ASU 2014-09 Had Been in Effect
Other Operating Revenues ($ millions):	2018		2017
Usource Contract Revenue	$	1.3	$	1.4
Less: Revenue Sharing Payments		0.2		0.3

Total Other Operating Revenues	$	1.1	$	1.1


	Three Months Ended June 30,
	As Reported		If ASU 2014-09 Had Been in Effect
Operation and Maintenance Expense ($ millions):	2018		2017
Operation and Maintenance Expense	$	17.8	$	16.2


	Six Months Ended June 30,
	As Reported		If ASU 2014-09 Had Been in Effect
Other Operating Revenues ($ millions):	2018		2017
Usource Contract Revenue	$	2.9	$	3.1
Less: Revenue Sharing Payments		0.5		0.5

Total Other Operating Revenues	$	2.4	$	2.6


	Six Months Ended June 30,
	As Reported		If ASU 2014-09 Had Been in Effect
Operation and Maintenance Expense ($ millions):	2018		2017
Operation and Maintenance Expense	$	35.1	$	32.0

Allowance for Doubtful Accounts Included in Accounts Receivable Net

The Allowance for Doubtful Accounts as of June 30, 2018, June 30, 2017 and December 31, 2017, which is included in Accounts Receivable, net on the accompanying unaudited consolidated balance sheets, was as follows:

($ millions)

June 30,

December 31,

2018

2017

Allowance for Doubtful Accounts

1.4

1.4

1.6

Components of Accrued Revenue

The following table shows the components of Accrued Revenue as of June 30, 2018, June 30, 2017 and December 31, 2017.


	June 30,				December 31,
Accrued Revenue ($ millions)	2018		2017		2017
Regulatory Assets – Current	$	21.2	$	29.1	$	39.5
Unbilled Revenues		8.5		7.5		13.8

Total Accrued Revenue	$	29.7	$	36.6	$	53.3

Components of Exchange Gas Receivable

The following table shows the components of Exchange Gas Receivable as of June 30, 2018, June 30, 2017 and December 31, 2017.


	June 30,				December 31,
Exchange Gas Receivable ($ millions)	2018		2017		2017
Northern Utilities	$	5.2	$	5.5	$	5.4
Fitchburg		0.3		0.4		0.4

Total Exchange Gas Receivable	$	5.5	$	5.9	$	5.8

Components of Gas Inventory

The Company uses the weighted average cost methodology to value natural gas inventory. The following table shows the components of Gas Inventory as of June 30, 2017, June 30, 2016 and December 31, 2016.


	June 30,				December 31,
Gas Inventory ($ millions)	2018		2017		2017
Natural Gas	$	0.2	$	0.2	$	0.4
Propane		0.3		0.2		0.1
Liquefied Natural Gas & Other		0.1		0.1		0.1

Total Gas Inventory	$	0.6	$	0.5	$	0.6

Regulatory Assets


	June 30,				December 31,
Regulatory Assets consist of the following ($ millions)	2018		2017		2017
Retirement Benefits	$	86.7	$	75.9	$	84.5
Energy Supply & Other Rate Adjustment Mechanisms		19.0		25.4		36.0
Deferred Storm Charges		6.8		7.7		7.2
Environmental		9.0		10.2		9.5
Income Taxes		6.1		7.0		6.5
Other		4.3		5.8		5.4

Total Regulatory Assets	$	131.9	$	132.0	$	149.1
Less: Current Portion of Regulatory Assets⁽¹⁾		21.2		29.1		39.5

Regulatory Assets – noncurrent	$	110.7	$	102.9	$	109.6

⁽¹⁾

Reflects amounts included in Accrued Revenue, discussed above, on the Company’s Consolidated Balance Sheets.

Regulatory Liabilities


	June 30,				December 31,
Regulatory Liabilities consist of the following ($ millions)	2018		2017		2017
Rate Adjustment Mechanisms	$	14.2	$	13.1	$	6.9
Gas Pipeline Refund (Note 6)		—		3.5		2.3
Income Taxes (Note 8)		47.1		—		48.9

Total Regulatory Liabilities		61.3		16.6		58.1
Less: Current Portion of Regulatory Liabilities		14.2		16.6		9.2

Regulatory Liabilities – noncurrent	$	47.1	$	—	$	48.9

Fair Value of Marketable Securities

Changes in the fair value of these investments are recorded in Other Expense (Income), net.


	June 30,				December 31,
Fair Value of Marketable Securities ($ millions)	2018		2017		2017
Equity Funds	$	2.9	$	1.9	$	2.1
Fixed Income Funds		2.3		1.5		1.5

Total Marketable Securities	$	5.2	$	3.4	$	3.6

Components of Energy Supply Obligations

The following discussion and table summarize the nature and amounts of the items recorded on the Company’s Consolidated Balance Sheets. The current portion of these obligations is recorded as Energy Supply Obligations and the noncurrent portion is included in Other Noncurrent Liabilities on the Company’s Consolidated Balance Sheets.


	June 30,				December 31,
Energy Supply Obligations ($ millions)	2018		2017		2017
Current:
Exchange Gas Obligation	$	5.2	$	5.5	$	5.4
Renewable Energy Portfolio Standards		3.9		4.5		4.0
Power Supply Contract Divestitures		0.3		0.3		0.3

Total Energy Supply Obligations – Current		9.4		10.3		9.7
Noncurrent:
Power Supply Contract Divestitures		0.8		1.1		0.9

Total Energy Supply Obligations	$	10.2	$	11.4	$	10.6