Unitil’s distribution utilities are authorized by regulators to recover the costs of their energy commodity portion of bad debts through rate mechanisms. In 2023, 2022 and 2021, the Company recorded provisions for the energy commodity portion of bad debts of $3.8 million, $3.8 million and $2.4 million, respectively. These provisions were recognized in Cost of Electric Sales and Cost of Gas Sales expense as the associated electric and gas utility revenues were billed. Cost of Electric Sales and Cost of Gas Sales costs are recovered from customers through periodic rate reconciling mechanisms. Also, the electric and gas divisions of Fitchburg are authorized to recover through rates past due amounts associated with hardship accounts that are protected from shut-off. As of December 31, 2023 and 2022, the Company has recorded $6.0 million and $5.8 million, respectively, of hardship accounts in Regulatory Assets. The Company currently receives recovery in rates or expects to receive recovery of these hardship accounts in future rate cases.

Accounts Receivable, Net includes $2.3 million and $2.5 million of the Allowance for Doubtful Accounts at December 31, 2023 and December 31, 2022, respectively. Unbilled Revenues, net (a component of Accrued Revenue) includes $0.1 million and $0.1 million of the Allowance for Doubtful Accounts at December 31, 2023 and December 31, 2022, respectively.

The following table shows the balances and activity in the Company’s Allowance for Doubtful Accounts for 2023, 2022 and 2021 (millions):

ALLOWANCE FOR DOUBTFUL ACCOUNTS


	Balance at Beginning of Period		Provision		Recoveries		Accounts Written Off		Regulatory Deferrals*			Balance at End of Period
Year Ended December 31, 2023
Electric	$	1.6	$	3.6	$	0.2	$	3.9	$	—		$	1.5
Gas		1.0		2.8		0.4		3.3		—			0.9
	$	2.6	$	6.4	$	0.6	$	7.2	$	—		$	2.4
Year Ended December 31, 2022
Electric	$	2.0	$	4.2	$	0.3	$	4.4	$	(0.5	)	$	1.6
Gas		1.3		2.5		0.6		3.2		(0.2	)		1.0
	$	3.3	$	6.7	$	0.9	$	7.6	$	(0.7	)	$	2.6
Year Ended December 31, 2021
Electric	$	1.6	$	3.3	$	0.4	$	3.4	$	0.1		$	2.0
Gas		1.7		2.3		0.4		3.1		—			1.3
	$	3.3	$	5.6	$	0.8	$	6.5	$	0.1		$	3.3

* In 2021, the Company recorded higher than normal expected bad debt expense due to the coronavirus pandemic. The incremental bad debt expense amounts were previously deferred as regulatory assets based on certain regulatory proceedings and management’s view that such amounts were probable of recovery. Based on actual billing and collections experience, the Company has not deferred any incremental bad debt expense as a regulatory asset as of December 31, 2023 and December 31, 2022.