Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 17, 2023 | Jun. 30, 2022 | |
Document Information [Line Items] | |||
Entity Central Index Key | 0001587732 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Document Type | 10-K | ||
Entity Information | |||
City Area Code | (918) | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Address, Address Line One | 15 East Fifth Street | ||
Entity Address, City or Town | Tulsa, | ||
Entity Address, State or Province | OK | ||
Entity Address, Postal Zip Code | 74103 | ||
Local Phone Number | 947-7000 | ||
Entity Common Stock, Shares Outstanding | 55,350,277 | ||
Entity Current Reporting Status | Yes | ||
Entity Emerging Growth Company | false | ||
Entity File Number | 001-36108 | ||
Entity Incorporation, State or Country Code | OK | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Registrant Name | ONE Gas, Inc. | ||
Entity Tax Identification Number | 46-3561936 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 4,200,000,000 | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | OGS | ||
Security Exchange Name | NYSE | ||
ICFR Auditor Attestation Flag | true | ||
Documents Incorporated by Reference [Text Block] | Portions of the definitive proxy statement to be delivered to shareholders in connection with the Annual Meeting of Shareholders to be held May 25, 2023, are incorporated by reference in Part III. |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Tulsa, Oklahoma |
Auditor Firm ID | 238 |
STATEMENTS OF INCOME
STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues | $ 2,578,005 | $ 1,808,597 | $ 1,530,268 |
Cost of natural gas | 1,459,087 | 775,006 | 537,445 |
Operating expenses | |||
Operations and maintenance | 472,265 | 449,676 | 431,115 |
Depreciation and amortization | 228,479 | 207,233 | 194,881 |
General taxes | 68,217 | 66,424 | 63,311 |
Total operating expenses | 768,961 | 723,333 | 689,307 |
Operating income | 349,957 | 310,258 | 303,516 |
Other expense, net | (4,183) | (3,207) | (3,020) |
Interest expense, net | (77,506) | (60,301) | (62,505) |
Income before income taxes | 268,268 | 246,750 | 237,991 |
Income taxes | (46,526) | (40,316) | (41,579) |
Net income | $ 221,742 | $ 206,434 | $ 196,412 |
Earnings per share | |||
Basic | $ 4.09 | $ 3.85 | $ 3.70 |
Diluted | $ 4.08 | $ 3.85 | $ 3.68 |
Average shares (thousands) | |||
Basic | 54,207 | 53,575 | 53,133 |
Diluted | 54,338 | 53,674 | 53,370 |
Common Stock, Dividends, Per Share, Declared | $ 2.48 | $ 2.32 | $ 2.16 |
STATEMENTS OF COMPREHENSIVE INC
STATEMENTS OF COMPREHENSIVE INCOME STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net income | $ 221,742 | $ 206,434 | $ 196,412 |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Change in pension and other postemployment benefit plans liability, net of tax of $(1,705), $(379), and $289, respectively | 5,823 | 1,250 | (1,038) |
Other comprehensive income (loss), net of tax | 5,823 | 1,250 | (1,038) |
Comprehensive income | 227,565 | 207,684 | 195,374 |
Pension and other postretirement benefit plans, Tax | $ (1,705) | $ (379) | $ 289 |
BALANCE SHEETS
BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property, plant and equipment | ||
Property, plant and equipment | $ 7,834,557 | $ 7,274,268 |
Accumulated depreciation and amortization | 2,205,717 | 2,083,433 |
Net property, plant and equipment | 5,628,840 | 5,190,835 |
Current assets | ||
Cash and cash equivalents | 9,681 | 8,852 |
Restricted Cash and Cash Equivalents | 8,446 | 0 |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents | 18,127 | 8,852 |
Accounts receivable, net | 553,834 | 341,756 |
Materials and supplies | 70,873 | 54,892 |
Natural gas in storage | 269,205 | 179,646 |
Regulatory assets | 275,572 | 1,611,676 |
Other current assets | 29,997 | 27,742 |
Total current assets | 1,217,608 | 2,224,564 |
Goodwill and other assets | ||
Regulatory assets | 330,831 | 724,862 |
Finite-Lived Intangible Assets, Net | 323,838 | 0 |
Goodwill | 157,953 | 157,953 |
Other assets | 117,326 | 103,906 |
Total goodwill and other assets | 929,948 | 986,721 |
Total assets | 7,776,396 | 8,402,120 |
Equity and long-term debt | ||
Common stock, $0.01 par value: authorized 250,000,000 shares; issued and outstanding 55,349,954 shares at December 31, 2022; issued and outstanding 53,633,210 shares at December 31, 2021 | 553 | 536 |
Paid-in capital | 1,932,714 | 1,790,362 |
Retained earnings | 651,863 | 565,161 |
Accumulated other comprehensive income (loss) | (704) | (6,527) |
Total equity | 2,584,426 | 2,349,532 |
Other Long-Term Debt, Noncurrent | 2,352,400 | 3,683,378 |
Securitized utility tariff bonds, excluding current maturities, net of issuance costs | 309,343 | 0 |
Long-term debt, excluding current maturities, and net of issuance costs | 2,661,743 | 3,683,378 |
Total equity and long-term debt | 5,246,169 | 6,032,910 |
Current liabilities | ||
Long-Term Debt, Current Maturities | 20,716 | 0 |
Notes payable | 552,000 | 494,000 |
Accounts payable | 360,493 | 258,554 |
Accrued taxes other than income | 78,352 | 67,035 |
Regulatory liabilities | 47,867 | 8,090 |
Customer deposits | 57,854 | 62,454 |
Other current liabilities | 72,137 | 90,360 |
Total current liabilities | 1,189,419 | 980,493 |
Deferred credits and other liabilities [Abstract] | ||
Deferred Income Taxes | 698,456 | 695,284 |
Regulatory Liability, Noncurrent | 529,441 | 552,928 |
Employee benefit obligations | 19,587 | 35,226 |
Other deferred credits | 93,324 | 105,279 |
Liabilities, Other than Long-Term Debt, Noncurrent | 1,340,808 | 1,388,717 |
Commitments and Contingencies | ||
Total liabilities and equity | $ 7,776,396 | $ 8,402,120 |
Common Stock, Shares, Issued | 55,349,954 | 53,633,210 |
Common Stock, Shares, Outstanding | 55,349,954 | 53,633,210 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 250,000,000 | 250,000,000 |
STATEMENTS OF CASH FLOWS
STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating activities | |||
Net income | $ 221,742 | $ 206,434 | $ 196,412 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 228,479 | 207,233 | 194,881 |
Deferred income taxes | (22,034) | 43,449 | 18,485 |
Share-based compensation expense | 10,741 | 10,498 | 9,803 |
Provision for doubtful accounts | 6,003 | 9,131 | 15,450 |
Proceeds from Securitization Bonds, Operating Activities | 1,330,582 | 0 | 0 |
Changes in assets and liabilities: | |||
Accounts receivable | (213,656) | (57,902) | (58,423) |
Materials and supplies | (15,981) | (2,126) | 2,966 |
Natural gas in storage | (89,559) | (85,700) | 10,313 |
Asset removal costs | (47,032) | (49,029) | (40,833) |
Accounts payable | 85,915 | 107,207 | 28,376 |
Accrued taxes other than income | 11,317 | 3,235 | 15,844 |
Customer deposits | (4,600) | (5,574) | 10,041 |
Increase Decrease In Regulatory Assets And Liabilities Current | 52,417 | (1,562,574) | (38,773) |
Increase Decrease In Regulatory Assets And Liabilities Non-current | 53,992 | (367,210) | 23,648 |
Employee benefit obligation | 0 | 0 | (3,109) |
Increase (Decrease) in Other Current Assets and Liabilities, Net | (23,377) | 18,461 | (12,877) |
Increase (Decrease) in Other Noncurrent Assets and Liabilities, Net | (14,107) | (11,190) | (7,704) |
Cash provided by (used in) operating activities | 1,570,842 | (1,535,657) | 364,500 |
Investing activities | |||
Payments to Acquire Property, Plant, and Equipment | (609,486) | (495,246) | (471,345) |
Payments for (Proceeds from) Other Investing Activities | (8,632) | (7,554) | (2,804) |
Proceeds from Sale of Other Assets, Investing Activities | 4,008 | 1,717 | 3,777 |
Net Cash Provided by (Used in) Investing Activities | (614,110) | (501,083) | (470,372) |
Financing activities | |||
Proceeds from (Repayments of) Notes Payable | 58,000 | 75,775 | (98,275) |
Proceeds from Issuance of Other Long-Term Debt | 297,591 | 2,498,895 | 298,428 |
Proceeds from Securitization Bonds, Financing Activities | 335,931 | 0 | 0 |
Payments of Debt Issuance Costs | (8,567) | (35,110) | (2,885) |
Issuance of common stock | 133,711 | 26,662 | 19,383 |
Repayments of Long-term Debt | (1,627,000) | (400,000) | 0 |
Dividends paid | (133,954) | (123,912) | (114,372) |
Payment, Tax Withholding, Share-Based Payment Arrangement | (3,169) | (4,711) | (6,267) |
Cash provided by (used in) financing activities | (947,457) | 2,037,599 | 96,012 |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 9,275 | 859 | (9,860) |
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 8,852 | 7,993 | 17,853 |
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | 18,127 | 8,852 | 7,993 |
Supplemental cash flow information: | |||
Interest Paid, Excluding Capitalized Interest, Operating Activities | 84,871 | 70,066 | 60,126 |
Cash paid (received) for income taxes, net | $ 67,421 | $ (10,809) | $ 30,361 |
STATEMENT OF CHANGES IN EQUITY
STATEMENT OF CHANGES IN EQUITY - USD ($) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Common Stock, Shares, Issued | 52,771,749 | ||||
Equity, beginning balance at Dec. 31, 2019 | $ 2,129,390,000 | $ 528,000 | $ 1,733,092,000 | $ 402,509,000 | $ (6,739,000) |
Net income | 196,412,000 | 0 | 0 | 196,412,000 | 0 |
Other comprehensive loss | (1,038,000) | $ 0 | 0 | 0 | (1,038,000) |
Common stock issued, shares | 394,984 | ||||
Common stock issued, value | $ 22,919,000 | $ 4,000 | 22,915,000 | 0 | 0 |
Dividends declared per share of stock | $ 2.16 | ||||
Common stock dividends | $ (114,372,000) | 0 | 914,000 | (115,286,000) | 0 |
Equity, ending balance at Dec. 31, 2020 | 2,233,311,000 | $ 532,000 | 1,756,921,000 | 483,635,000 | (7,777,000) |
Common Stock, Shares, Issued | 53,166,733 | ||||
Net income | 206,434,000 | $ 0 | 0 | 206,434,000 | 0 |
Other comprehensive loss | 1,250,000 | $ 0 | 0 | 0 | 1,250,000 |
Common stock issued, shares | 466,477 | ||||
Common stock issued, value | $ 32,449,000 | $ 4,000 | 32,445,000 | 0 | 0 |
Dividends declared per share of stock | $ 2.32 | ||||
Common stock dividends | $ (123,912,000) | 0 | 996,000 | (124,908,000) | 0 |
Equity, ending balance at Dec. 31, 2021 | $ 2,349,532,000 | $ 536,000 | 1,790,362,000 | 565,161,000 | (6,527,000) |
Common Stock, Shares, Issued | 53,633,210 | 53,633,210 | |||
Net income | $ 221,742,000 | $ 0 | 0 | 221,742,000 | 0 |
Other comprehensive loss | 5,823,000 | $ 0 | 0 | 0 | 5,823,000 |
Common stock issued, shares | 1,716,744 | ||||
Common stock issued, value | $ 141,283,000 | $ 17,000 | 141,266,000 | 0 | 0 |
Dividends declared per share of stock | $ 2.48 | ||||
Common stock dividends | $ (133,954,000) | 0 | 1,086,000 | (135,040,000) | 0 |
Equity, ending balance at Dec. 31, 2022 | $ 2,584,426,000 | $ 553,000 | $ 1,932,714,000 | $ 651,863,000 | $ (704,000) |
Common Stock, Shares, Issued | 55,349,954 | 55,349,954 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Significant Accounting Policies [Line Items] | |
SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization and Nature of Operations - We provide natural gas distribution services to approximately 2.3 million customers in Oklahoma, Kansas and Texas through our three divisions, Oklahoma Natural Gas, Kansas Gas Service and Texas Gas Service, respectively. We primarily serve residential, commercial and transportation customers in all three states. We are a corporation incorporated under the laws of the state of Oklahoma, and our common stock is listed on the NYSE under the trading symbol “OGS.” Basis of Presentation - The consolidated financial statements include the accounts of our natural gas distribution business as set forth in “Organization and Nature of Operations” above. All significant balances and transactions between our subsidiaries have been eliminated. Use of Estimates - The preparation of our consolidated financial statements and related disclosures in accordance with GAAP requires us to make estimates and assumptions with respect to values or conditions that cannot be known with certainty that affect the reported amount of assets and liabilities, and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements. These estimates and assumptions also affect the reported amounts of revenue and expenses during the reporting period. Items that may be estimated include, but are not limited to, the economic useful life of assets, fair value of assets and liabilities, provisions for doubtful accounts receivable, unbilled revenues for natural gas delivered but for which meters have not been read, natural gas purchased but for which no invoice has been received, provision for income taxes, including any deferred income tax valuation allowances, the results of litigation and various other recorded or disclosed amounts. We evaluate these estimates on an ongoing basis using historical experience and other methods we consider reasonable based on the particular circumstances. Nevertheless, actual results may differ significantly from the estimates. Any effects on our financial position or results of operations from revisions to these estimates are recorded in the period when the facts that give rise to the revision become known. Revenues - We recognize revenue from contracts with customers to depict the transfers of goods and services to customers at an amount that we expect to be entitled to receive in exchange for these goods and services. Our sources of revenue are disaggregated by natural gas sales, transportation revenues, and miscellaneous revenues, which are primarily one-time service fees, that meet the requirements of ASC 606. Certain revenues that do not meet the requirements of ASC 606 are classified as other revenues in our Notes to Consolidated Financial Statements in this Annual Report. Our natural gas sales to customers and transportation revenues represent revenues from contracts with customers through implied contracts established by our tariffs approved by regulatory authorities. Our customers receive the benefits of our performance when the commodity is delivered to the customer. The performance obligation is satisfied over time as the customer receives the natural gas. For deliveries of natural gas, we read meters and bill customers on a monthly cycle. We recognize revenues upon the delivery of natural gas or services rendered to customers. The billing cycles for customers do not necessarily coincide with the accounting periods used for financial reporting purposes. We accrue unbilled revenues for natural gas that has been delivered but not yet billed at the end of an accounting period. We use the invoice method practical expedient, where we recognize revenue for volumes delivered for which we have a right to invoice. Our estimate of accrued unbilled revenue is based on a percentage estimate of amounts unbilled each month, which is dependent upon a number of factors, some of which require management’s judgment. These factors include customer consumption patterns and the impact of weather on usage. The accrued unbilled natural gas sales revenue at December 31, 2022 and 2021 was $269.5 million and $183.2 million, respectively, and is included in accounts receivable on our consolidated balance sheets. Our miscellaneous revenues from contracts with customers represent implied contracts established by our tariff rates approved by the regulatory authorities and include miscellaneous utility services with the performance obligation satisfied at a point in time when services are rendered to the customer. Total other revenues consist of revenues associated with regulatory mechanisms that do not meet the requirements of ASC 606 as revenue from contracts with customers, but authorize us to accrue revenues earned based on tariffs approved by regulatory authorities. Other revenues - natural gas sales primarily relate to the WNA mechanism in Kansas. This mechanism adjusts our revenues earned for the variance between actual and normal HDDs. This mechanism can have either positive (warmer than normal) or negative (colder than normal) effects on revenues. We collect and remit other taxes on behalf of governmental authorities, and we record these amounts in accrued taxes other than income in our consolidated balance sheets. See Note 2 for additional discussion of revenues. Cost of Natural Gas - Cost of natural gas includes commodity purchases, fuel, storage, transportation and other gas purchase costs recovered through our cost of natural gas regulatory mechanisms and does not include an allocation of general operating costs or depreciation and amortization. These cost of natural gas regulatory mechanisms provide a method of recovering natural gas costs on an ongoing basis without a profit. See Note 10 for additional discussion of purchased gas cost recoveries. Cash, Cash Equivalents and Restricted Cash and Cash Equivalents - Cash and cash equivalents consist of highly liquid investments, which are readily convertible into cash and have original maturities of three months or less. Restricted cash consists of funds that are contractually or legally restricted as to usage or withdrawal and have been presented separately from cash and cash equivalents on our consolidated balance sheets. Restricted cash and cash equivalents accounts were established for payment of Securitized Utility Tariff Bond issuance costs and payment of debt service on those bonds. Accounts Receivable - Accounts receivable represent valid claims against nonaffiliated customers for natural gas sold or services rendered, net of an allowance for doubtful accounts. We assess the creditworthiness of our customers. Those customers who do not meet minimum standards may be required to provide security, including deposits and other forms of collateral, when appropriate and allowed by our tariffs. With approximately 2.3 million customers across three states, we are not exposed materially to a concentration of credit risk. We maintain an allowance for doubtful accounts based upon factors surrounding the credit risk of customers, historical trends, consideration of the current credit environment and other information. We are able to recover natural gas costs related to uncollectible accounts through purchased-gas cost adjustment mechanisms. At December 31, 2022 and 2021, our allowance for doubtful accounts was $16.7 million and $18.7 million, respectively. Inventories - Natural gas in storage is accounted for on the basis of weighted-average cost. Materials and supplies inventories are stated at the lower of weighted-average cost or net realizable value. Leases - We determine if an arrangement is a lease at inception if the contract conveys the right to control the use and obtain substantially all the economic benefits from the use of an identified asset for a period of time in exchange for consideration. We identify a lease as a finance lease if the agreement includes any of the following criteria: transfer of ownership by the end of the lease term; an option to purchase the underlying asset that the lessee is reasonably certain to exercise; a lease term that represents 75 percent or more of the remaining economic life of the underlying asset; a present value of lease payments and any residual value guaranteed by the lessee that equals or exceeds 90 percent of the fair value of the underlying asset; or an underlying asset that is so specialized in nature that there is no expected alternative use to the lessor at the end of the lease term. A lease that does not meet any of these criteria is considered an operating lease. Lease right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Right-of-use assets and liabilities are recognized at the commencement date of a lease based on the present value of lease payments over the lease term. Our lease terms may include options to extend or terminate the lease. We include these extension or termination options in the determination of the lease term when it is reasonably certain that we will exercise that option. We have lease agreements with lease and non-lease components, which are accounted for separately. Additionally, for certain office equipment leases, we apply a portfolio approach to effectively account for the operating lease right-of-use assets and liabilities. We do not recognize leases having a term of less than one year in our consolidated balance sheets. For purposes of determining the present value of the lease payments, we use a lease’s implicit interest rate when readily determinable. As most of our leases do not provide an implicit interest rate, we use an incremental borrowing rate based on available information at the commencement of the lease. Lease cost for operating leases is recognized on a straight-line basis over the lease term. See Note 5 for additional information regarding our leases. Derivatives and Risk Management Activities - We record all derivative instruments at fair value, with the exception of normal purchases and normal sales that are expected to result in physical delivery. The accounting for changes in the fair value of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and, if so, the reason for holding it, or if regulatory requirements impose a different accounting treatment. If certain conditions are met, we may elect to designate a derivative instrument as a hedge of exposure to changes in fair values or cash flows. We have not elected to designate any of our derivative instruments as hedges. The table below summarizes the various ways in which we account for our derivative instruments and the impact on our consolidated financial statements: Recognition and Measurement Accounting Treatment Balance Sheet Income Statement Normal purchases and - Fair value not recorded - Change in fair value not recognized in earnings Mark-to-market - Recorded at fair value - Change in fair value recognized in, and See Note 9 for additional information regarding our economic hedging activities using derivatives. Fair Value Measurements - We define fair value as the price that would be received from the sale of an asset or the transfer of a liability in an orderly transaction between market participants at the measurement date. We use the market and income approaches to determine the fair value of our assets and liabilities and consider the markets in which the transactions are executed. We measure the fair value of a group of financial assets and liabilities consistent with how a market participant would price the net risk exposure at the measurement date. Fair Value Hierarchy - At each balance sheet date, we utilize a fair value hierarchy to classify fair value amounts recognized or disclosed in our consolidated financial statements based on the observability of inputs used to estimate such fair value. The levels of the hierarchy are described below: • Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities; • Level 2 - Significant observable pricing inputs other than quoted prices included within Level 1 that are, either directly or indirectly, observable as of the reporting date. Essentially, this represents inputs that are derived principally from or corroborated by observable market data; and • Level 3 - May include one or more unobservable inputs that are significant in establishing a fair value estimate. These unobservable inputs are developed based on the best information available and may include our own internal data. We recognize transfers into and out of the levels as of the end of each reporting period. Determining the appropriate classification of our fair value measurements within the fair value hierarchy requires management’s judgment regarding the degree to which market data is observable or corroborated by observable market data. We categorize derivatives for which fair value is determined using multiple inputs within a single level, based on the lowest level input that is significant to the fair value measurement in its entirety. See Note 9 for additional information regarding our fair value measurements. Property, Plant and Equipment - Our properties are stated at cost, which includes direct construction costs such as direct labor, materials, burden and AFUDC. Generally, the cost of our property retired or sold, plus removal costs, less salvage, is charged to accumulated depreciation. Gains and losses from sales or retirement of an entire operating unit or system of our properties are recognized in income. Maintenance and repairs are charged directly to expense. AFUDC represents the cost of borrowed funds used to finance construction activities. We capitalize interest costs during the construction or upgrade of qualifying assets. Capitalized interest is recorded as a reduction to interest expense. Our properties are depreciated using the straight-line method over their estimated useful lives. Generally, we apply composite depreciation rates to functional groups of property having similar economic circumstances. We periodically conduct depreciation studies to assess the economic lives of our assets. These depreciation studies are completed as a part of our regulatory proceedings, and the changes in economic lives, if applicable, are implemented prospectively when the new rates are approved by our regulators and become effective. Changes in the estimated economic lives of our property, plant and equipment could have a material effect on our financial position, results of operations or cash flows. Property, plant and equipment on our consolidated balance sheets includes construction work in process for capital projects that have not yet been placed in service and therefore are not being depreciated. Assets are transferred out of construction work in process when they are substantially complete and ready for their intended use. See Note 12 for additional information regarding our property, plant and equipment. Impairment of Goodwill and Long-Lived Assets - We assess our goodwill for impairment at least annually as of July 1, unless events or a change in circumstances indicate an impairment may have occurred before that time. As part of our goodwill impairment test, we first assess qualitative factors (including macroeconomic conditions, industry and market considerations, cost factors and overall financial performance) to determine whether it is more likely than not that our fair value is less than the carrying amount of our net assets. If further testing is necessary or a quantitative test is elected to refresh our recurring qualitative assessment, we perform a quantitative impairment test for goodwill. Our impairment assessment is performed by comparing our fair value with our book value, including goodwill. If the fair value is less than the book value, an impairment is measured by the amount of our carrying value that exceeds fair value, not to exceed the carrying amount of our goodwill. To estimate fair value, we use two generally accepted valuation approaches, an income approach and a market approach, using assumptions consistent with a market participant’s perspective. Under the income approach, we use anticipated cash flows over a period of years plus a terminal value and discount these amounts to their present value using appropriate discount rates. Under the market approach, we apply acquisition multiples to forecasted cash flows. The acquisition multiples used are consistent with historical market transactions. The forecasted cash flows are based on average forecasted cash flows over a period of years. Our goodwill impairment analysis performed in 2022 and 2021 utilized a qualitative assessment and did not result in any impairment indicators, nor did our analysis reflect our reporting unit at risk. Subsequent to July 1, 2022, no event has occurred indicating that it is more likely than not that our fair value is less than the carrying value of our net assets. We assess our long-lived assets for impairment whenever events or changes in circumstances indicate that an asset’s carrying amount may not be recoverable. An impairment is indicated if the carrying amount of a long-lived asset exceeds the sum of the undiscounted future cash flows expected to result from the use and eventual disposition of the asset. If an impairment is indicated, we record an impairment loss equal to the difference between the carrying value and the fair value of the long-lived asset. We determined that there were no material asset impairments in 2022, 2021 or 2020. Securitized Intangible Asset - On November 18, 2022, KGSS-I acquired the Securitized Utility Tariff Property from Kansas Gas Service for $327.4 million. The Securitized Utility Tariff Property is classified as a securitized intangible asset on our consolidated balance sheets. This securitized intangible asset will be amortized over 10 years, the estimated period needed to collect the required amounts from Kansas Gas Service’s customers to service the Securitized Utility Tariff Bonds. The amortization expense related to the securitized intangible asset will be included in depreciation and amortization expense in our consolidated statements of income. For the year ended December 31, 2022, we recorded $3.5 million of amortization expense related to the securitized intangible asset. At the end of its life, this securitized intangible asset will have no residual value. See Note 4 for additional information about the Securitized Utility Tariff Bonds and Notes 10 and 11 for additional information about the securitization transaction. Finite-lived intangible assets are stated at cost, net of accumulated amortization, which is recorded on a straight-line or accelerated basis over the life of the asset. We review amortizable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. If such a review should indicate that the carrying amount of amortizable intangible assets is not recoverable, we reduce the carrying amount of such assets to fair value. Regulation - We are subject to the rate regulation and accounting requirements of the OCC, KCC, RRC and various municipalities in Texas. We follow the accounting and reporting guidance for regulated operations, including evaluating regulatory decisions to determine appropriate revenue recognition, cost deferrals and recoverability for regulatory assets and refund requirements for regulatory liabilities. During the ratemaking process, regulatory authorities set the framework for what we can charge customers for our services and establish the manner that our costs are accounted for, including allowing us to defer recognition of certain costs and permitting recovery of the amounts through rates over time, as opposed to expensing such costs as incurred. Examples include weather normalization, unrecovered purchased-gas costs, extraordinary costs associated with Winter Storm Uri, pension and postemployment benefit costs and ad-valorem taxes. This allows us to stabilize rates over time rather than passing such costs on to the customer for immediate recovery. Actions by regulatory authorities could have an effect on the amount recovered from customers. Any difference in the amount recoverable and the amount deferred is recorded as income or expense at the time of the regulatory action. A write-off of regulatory assets and costs not recovered may be required if all or a portion of the regulated operations have rates that are no longer: • established by independent regulators; • designed to recover our costs of providing regulated services; and • set at levels that will recover our costs when considering the demand and competition for our services. Should recovery cease due to regulatory actions, certain of these assets may no longer meet the criteria for recognition and accordingly, a write-off of regulatory assets and stranded costs may be required. There were no write-offs of regulatory assets resulting from the failure to meet the criteria for capitalization during 2022, 2021 and 2020. See Note 10 for additional information regarding our regulatory assets and liabilities. Pension and Other Postemployment Employee Benefits - We have defined benefit pension plans covering eligible employees. We also sponsor welfare plans that provide other postemployment medical and life insurance benefits to eligible employees who retire with at least five years of service. To calculate the costs and liabilities related to our plans, we utilize an outside actuarial consultant, which uses statistical and other factors to anticipate future events. These factors include assumptions about the discount rate, expected return on plan assets, rate of future compensation increases, age and mortality and employment periods. We use tables issued by the Society of Actuaries to estimate mortality rates. In determining the projected benefit obligations and costs, assumptions can change from period to period and may result in material changes in the cost and liabilities we recognize. Income Taxes - Deferred income taxes are recorded for the difference between the financial statement and income tax basis of assets and liabilities and carryforward items, based on income tax laws and rates existing at the time the temporary differences are expected to reverse. The effect on deferred income taxes of a change in tax rates is deferred and amortized for operations regulated by the OCC, KCC, RRC and various municipalities in Texas, if, as a result of an action by a regulator, it is probable that the effect of the change in tax rates will be recovered from or returned to customers through future rates. We continue to amortize previously deferred investment tax credits for ratemaking purposes over the periods prescribed by our regulators. A valuation allowance for deferred income tax assets is recognized when it is more likely than not that some or all of the benefit from the deferred income tax asset will not be realized. To assess that likelihood, we use estimates and judgment regarding our future taxable income, as well as the jurisdiction in which such taxable income is generated, to determine whether a valuation allowance is required. Such evidence can include our current financial position, our results of operations, both actual and forecasted, the reversal of deferred income tax liabilities, as well as the current and forecasted business economics of our industry. We had no valuation allowance at December 31, 2022 and 2021. We utilize a more-likely-than-not recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position that is taken or expected to be taken in a tax return. We reflect penalties and interest as part of income tax expense as they become applicable for tax provisions that do not meet the more-likely-than-not recognition threshold and measurement attribute. There were no material uncertain tax positions at December 31, 2022 and 2021. Changes in tax laws or tax rates are recognized in the financial reporting period that includes the enactment date. See Note 15 for additional information regarding income taxes. Asset Retirement Obligations - Asset retirement obligations represent legal obligations associated with the retirement of long-lived assets that result from the acquisition, construction, development and/or normal use of the asset. Certain long-lived assets that comprise our natural gas distribution systems, primarily our pipeline assets, are subject to agreements or regulations that give rise to an asset retirement obligation for removal or other disposition costs associated with retiring the assets in place upon the discontinued use of the natural gas distribution system. We recognize the fair value of a liability for an asset retirement obligation in the period when it is incurred if a reasonable estimate of the fair value can be made. We are not able to estimate reasonably the fair value of the asset retirement obligations for portions of our assets because the settlement dates are indeterminable given our expected continued use of the assets with proper maintenance. We expect our natural gas distribution systems will continue in operation for the foreseeable future. Based on our proximity to significant natural gas reserves and infrastructure and the widespread use of natural gas for heating and cooking activities by residential and commercial customers in our service areas, we expect supply and demand to exist for the foreseeable future. In accordance with long-standing regulatory treatment, we collect through rates the estimated costs of removal on certain regulated properties through depreciation expense as a portion of the net salvage value component of our composite deprecation rates, with a corresponding credit to accumulated depreciation and amortization. These removal costs collected through our rates include costs attributable to legal and nonlegal removal obligations. These costs are addressed prospectively in depreciation rates, rather than as a regulatory liability, in each general rate order. For financial reporting purposes, if the removal costs collected have exceeded our removal costs incurred, we estimate a regulatory liability using current rates since the last general rate order in each of our jurisdictions. At December 31, 2022 and 2021, we have not recorded a regulatory liability, as our removal costs incurred have exceeded amounts collected through our depreciation rates. Significant uncertainty exists regarding the recording of these regulatory liabilities, pending, among other issues, clarification of regulatory intent. We continue to monitor the regulatory requirements, and any future regulatory liabilities incurred may be adjusted as more information is obtained. To the extent these estimated liabilities are adjusted, such amounts will be reclassified between accumulated depreciation and amortization and regulatory liabilities on our balance sheet and therefore will not have an impact on earnings. Contingencies - Our accounting for contingencies covers a variety of business activities, including contingencies for legal and environmental exposures. We accrue these contingencies when our assessments indicate that it is probable that a liability has been incurred or an asset will not be recovered and an amount can be estimated reasonably. We expense legal fees as incurred and base our legal liability estimates on currently available facts and our estimates of the ultimate outcome or resolution. Accruals for the estimated cost of environmental remediation obligations generally are recognized no later than the completion of a remediation feasibility study. Recoveries of environmental remediation costs from other parties are recorded as assets when their receipt is deemed probable. Actual results may differ from our estimates resulting in an impact, positive or negative, on earnings. See Note 17 for additional information regarding contingencies. Share-Based Payments - We expense the fair value of share-based payments net of estimated forfeitures. We estimate forfeiture rates based on historical forfeitures under our share-based payment plans. Earnings per share - Basic EPS is calculated by dividing net income by the daily weighted-average number of common shares outstanding during the periods presented. Also, this calculation includes fully vested stock awards that have not yet been issued as common stock. Diluted EPS includes the above, plus unvested stock awards granted under our compensation plans and equity forward sale agreements, but only to the extent these instruments dilute earnings per share. Segments - We operate in one reportable business segment: regulated public utilities that deliver natural gas primarily to residential, commercial and transportation customers. We define reportable business segments as components of an organization for which discrete financial information is available and operating results are evaluated on a regular basis by the chief operating decision maker (“CODM”) in order to assess performance and allocate resources. Our CODM is our Chief Executive Officer. Characteristics of our organization that were relied upon in making this determination include the similar nature of services we provide, the functional alignment of our organizational structure, and the reports that are regularly reviewed by the CODM for the purpose of assessing performance and allocating resources. Our management is functionally aligned and centralized, with performance evaluated based upon results of the entire distribution business. Capital allocation decisions are driven by asset integrity management, operating efficiency, growth opportunities and government-requested pipeline relocations, not geographic location or regulatory jurisdiction. In 2022, 2021 and 2020, we had no single external customer from which we received 10 percent or more of our gross revenues. Recently Issued Accounting Standards Update - In November 2021, the FASB issued ASU 2021-10, “Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance,” which will require disclosure about government assistance in the notes to the financial statements. The amendment requires annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy, including information about the nature of the transactions and the related accounting policy used to account for the transactions, the line items on the balance sheet and income statement that are affected by the transactions and the significant terms and conditions of the transactions, including commitments and contingencies. The amendment became effective for us beginning January 1, 2022. As the guidance is related only to disclosures in the notes to the financial statements, we do not anticipate any impact on our financial position, results of operations or cash flows. See Note 10 for additional discussion regarding our securitization transaction with the Oklahoma government that is accounted for by applying a grant accounting model by analogy. In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting,” which provides relief from the accounting analysis and impacts that may otherwise be required for modifications to agreements (e.g., loans, debt securities, derivatives, borrowings) necessitated by reference rate reform. It also provides optional expedients to enable companies to continue to apply hedge accounting to certain hedging relationships impacted by reference rate reform. In the first quarter 2020, we adopted this new guidance effective for contracts modified between March 12, 2020 and December 31, 2022. In March 2022, we amended the ONE Gas Credit Agreement to change the defined benchmark rate to SOFR from LIBOR. Our adoption and subsequent amendment of the ONE Gas Credit Agreement did not result in a material impact to our consolidated financial statements. |
REVENUE (Notes)
REVENUE (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue [Policy Text Block] | REVENUE The following table sets forth our revenues disaggregated by source for the periods indicated: Year Ended December 31, 2022 2021 2020 (Thousands of dollars) Natural gas sales to customers $ 2,410,048 $ 1,652,566 $ 1,381,141 Transportation revenues 125,951 118,492 113,855 Securitization customer charges (Note 11) 5,769 — — Miscellaneous revenues 19,850 16,757 15,505 Total revenues from contracts with customers 2,561,618 1,787,815 1,510,501 Other revenues - natural gas sales related 3,403 9,650 8,299 Other revenues 12,984 11,132 11,468 Total other revenues 16,387 20,782 19,767 Total revenues $ 2,578,005 $ 1,808,597 $ 1,530,268 |
CREDIT FACILITY AND SHORT-TERM
CREDIT FACILITY AND SHORT-TERM NOTES PAYABLE (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Short-term Debt [Line Items] | |
Short-term Debt [Text Block] | CREDIT FACILITY AND SHORT-TERM DEBT On March 16, 2022, we entered into the first amendment to the second amended and restated ONE Gas Credit Agreement, which was previously amended and restated on March 16, 2021. The amendment extends the maturity date of the ONE Gas Credit Agreement to March 16, 2027, from March 16, 2026, and amends the ONE Gas Credit Agreement to provide that we may extend the maturity date, subject to the lenders’ consent, by one year two additional times. The amendment also changed the benchmark rate defined in the ONE Gas Credit Agreement to SOFR. All other material terms and conditions of the ONE Gas Credit Agreement remain in full force and effect. The ONE Gas Credit Agreement provides for a $1.0 billion revolving unsecured credit facility and includes a $20 million letter of credit subfacility and a $60 million swingline subfacility. We can request an increase in commitments of up to an additional $500 million upon satisfaction of customary conditions, including receipt of commitments from either new lenders or increased commitments from existing lenders. The ONE Gas Credit Agreement is available to provide liquidity for working capital, capital expenditures, acquisitions and mergers, the issuance of letters of credit and for other general corporate purposes. The ONE Gas Credit Agreement contains certain financial, operational and legal covenants. Among other things, these covenants include maintaining ONE Gas’ total debt-to-capital ratio of no more than 70 percent at the end of any calendar quarter. At December 31, 2022, our total debt-to-capital ratio was 56 percent and we were in compliance with all covenants under the ONE Gas Credit Agreement. We may reduce the unutilized portion of the ONE Gas Credit Agreement in whole or in part without premium or penalty. The ONE Gas Credit Agreement contains customary events of default. Upon the occurrence of certain events of default, the obligations under the ONE Gas Credit Agreement may be accelerated and the commitments may be terminated. At December 31, 2022, we had $1.2 million in letters of credit issued and no borrowings under the ONE Gas Credit Agreement, with $998.8 million of remaining credit available to repay our commercial paper borrowings. In June 2021, we increased the size of our commercial paper program to permit the issuance of commercial paper to fund short-term borrowing needs in an aggregate principal amount not to exceed $1.0 billion outstanding at any time. Prior to this increase, our commercial paper program permitted us to issue commercial paper in an aggregate principal amount not to exceed $700 million outstanding at any time. The maturities of the commercial paper notes may vary, but may not exceed 270 days from the date of issue. Commercial paper is generally sold at par less a discount representing an interest factor. At December 31, 2022 and 2021, we had $552.0 million and $494.0 million of commercial paper outstanding, respectively. The weighted-average interest rate on our commercial paper was 4.75 percent and 0.38 percent at December 31, 2022 and 2021, respectively. In connection with the second amendment and restatement of the ONE Gas Credit Agreement on March 16, 2021, all commitments under the ONE Gas 364-day Credit Agreement were terminated and all obligations under the ONE Gas 364-day Credit Agreement were discharged. |
LONG-TERM DEBT (Notes)
LONG-TERM DEBT (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Instrument [Line Items] | |
Long-term Debt [Text Block] | LONG-TERM DEBT The table below presents a summary of our long-term debt outstanding for the periods indicated: Interest rate at December 31, 2022 December 31, 2022 December 31, 2021 ( Thousands of dollars ) Senior unsecured notes: Senior unsecured notes due March 2023 $ — $ 1,000,000 Senior unsecured floating rate notes due March 2023 — 400,000 Senior unsecured notes due February 2024 3.610% 300,000 300,000 Senior unsecured notes due March 2024 1.100% 473,000 700,000 Senior unsecured notes due May 2030 2.000% 300,000 300,000 Senior unsecured notes due September 2032 4.250% 300,000 — Senior unsecured notes due February 2044 4.658% 600,000 600,000 Senior unsecured notes due November 2048 4.500% 400,000 400,000 Total senior unsecured notes 2,373,000 3,700,000 KGSS-I Securitized Utility Tariff Bonds 5.486% 336,000 — Other 8.000% 1,250 1,261 Unamortized discounts on long-term debt (7,636) (5,454) Debt issuance costs (20,143) (12,418) Total long-term debt, net 2,682,471 3,683,389 Less: current maturities of securitized utility tariff bonds 20,716 — Less: current maturities of long-term debt 12 11 Noncurrent portion of long-term debt, net $ 2,661,743 $ 3,683,378 Senior Notes - In August 2022, we issued $300 million of 4.25 percent senior notes due September 2032. The proceeds from the issuance were used to repay amounts outstanding under our commercial paper program and for general corporate purposes. In August 2022, we called $750 million of the $1.0 billion of 0.85 percent senior notes due March 2023, $150 million of the $700 million of 1.10 percent senior notes due March 2024 and the remaining $400 million of outstanding floating-rate senior notes due March 2023, using the proceeds received from the Oklahoma government in our securitization transaction for Oklahoma Natural Gas. On November 18, 2022, KGSS-I issued $336 million of 5.486 percent Securitized Utility Tariff Bonds. The Securitized Utility Tariff Bonds have an interest rate of 5.486 percent and a term of 10 years with semi-annual principal repayments, which results in an expected weighted average life of the bonds of 5.5 years. The bonds are governed by an indenture between KGSS-I and the indenture trustee. The indenture contains certain covenants that restrict KGSS-I’s ability to sell, transfer, convey, exchange, or otherwise dispose of its assets. See Note 10 for additional discussion of the securitization transactions. In November 2022, we called the remaining $250 million of the $1.0 billion of 0.85 percent senior notes due March 2023 and $77 million of the $700 million of 1.10 percent senior notes due March 2024, using the proceeds from the securitization transaction for Kansas Gas Service. In March 2021, we issued $1.0 billion of 0.85 percent senior notes due March 2023, $700 million of 1.10 percent senior notes due March 2024, and $800 million of floating-rate senior notes due March 2023. The net proceeds from the issuance were used for payment of gas purchases and related costs resulting from Winter Storm Uri and general corporate purposes. In September 2021, we called $400 million of the floating-rate senior notes due March 2023 at par, using a combination of cash on hand and commercial paper. We did not have the right to call these senior notes prior to September 11, 2021. The indenture governing our Senior Notes includes an event of default upon the acceleration of other indebtedness of $100 million or more. Such events of default would entitle the trustee or the holders of 25 percent in aggregate principal amount of the outstanding Senior Notes to declare those Senior Notes immediately due and payable in full. Depending on the series, we may redeem our Senior Notes at par, plus accrued and unpaid interest to the redemption date, starting three months or six months before their maturity dates. Prior to these dates, we may redeem these Senior Notes, in whole or in part, at a redemption price equal to the principal amount, plus accrued and unpaid interest and a make-whole premium. The redemption price will never be less than 100 percent of the principal amount of the respective Senior Note plus accrued and unpaid interest to the redemption date. Our Senior Notes are senior unsecured obligations, ranking equally in right of payment with all of our existing and future unsecured senior indebtedness. ONE Gas 2021 Term Loan Facility - On February 22, 2021, we entered into the ONE Gas 2021 Term Loan Facility as part of the financing of our natural gas purchases in order to provide sufficient liquidity to satisfy our obligations as a result of Winter Storm Uri. The net proceeds of the March 2021 debt issuance reduced the commitments under the ONE Gas 2021 Term Loan Facility on a dollar-for-dollar basis, and as a result no commitments remained outstanding and the facility was terminated concurrently with the closing of the debt issuance. |
LEASES (Notes)
LEASES (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Lessee, Operating Leases [Text Block] | LEASES We have operating leases for office facilities, gas storage facilities, IT equipment and right-of-way contracts. Our leases have remaining lease terms of one year to seven years, some of which include options to extend the leases for up to 10 years, and some of which include options to terminate the leases within specified time frames. We have not entered into any finance leases. Our right-of-use asset is $23.3 million and $30.9 million as of December 31, 2022 and 2021, respectively, and is reported within other assets in our consolidated balance sheets. Operating lease liabilities are reported within our other current liabilities and other liabilities in our consolidated balance sheets. Total operating lease cost including immaterial amounts attributable to short-term operating leases was $7.8 million, $8.2 million, and $8.4 million in 2022, 2021 and 2020, respectively. In 2022, we reassessed certain operating leases for office facilities and IT which were extended or modified, resulting in an decrease in our right-of-use asset and operating lease liability of $1.3 million and $1.3 million, respectively. Years Ended December 31, Other information related to operating leases 2022 2021 2020 (Millions of dollars) Weighted-average remaining lease term 5 years 6 years 7 years Weighted-average discount rate 4.04 % 2.78 % 2.81 % Supplemental cash flows information Lease payments $ (8.2) $ (8.0) $ (8.0) Right-of-use assets obtained in exchange for lease obligations $ 0.3 $ 0.4 $ 9.8 December 31, Future minimum lease payments under non-cancellable operating leases 2022 (Millions of dollars) 2023 $ 6.5 2024 4.7 2025 4.0 2026 3.2 2027 3.0 Thereafter 4.3 Total future minimum lease payments $ 25.7 Imputed interest (2.6) Total operating lease liability $ 23.1 Consolidated balance sheets as of December 31, 2022 Current operating lease liability $ 5.7 Long-term operating lease liability 17.4 Total operating lease liability $ 23.1 |
EQUITY (Notes)
EQUITY (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Class of Stock [Line Items] | |
Stockholders' Equity Note Disclosure [Text Block] | EQUITY Preferred Stock - At December 31, 2022, we had 50 million, $0.01 par value, authorized shares of preferred stock available. We have not issued or established any classes or series of shares of preferred stock. Common Stock - At December 31, 2022, we had approximately 194.7 million shares of authorized common stock available for issuance. At-the-Market Equity Program - In February 2020, we initiated an at-the-market equity program by entering into an equity distribution agreement under which we may issue and sell shares of our common stock with an aggregate offering price up to $250 million (including any shares of common stock that may be sold pursuant to the master forward sale confirmation entered into in connection with the equity distribution agreement and the related supplemental confirmations). Sales of common stock are made by means of ordinary brokers’ transactions on the NYSE, in block transactions or as otherwise agreed to between us and the sales agent. We are under no obligation to offer and sell common stock under the program. For the years ended December 31, 2022 and 2021, we sold and issued 403,792 and 281,124 shares of our common stock for $35.0 million and $21.4 million, respectively, generating proceeds, net of issuance costs, of $34.7 million and $21.1 million, respectively. For the year ended December 31, 2022, we also executed forward sale agreements for 1,451,474 shares of our common stock. We did not enter into any forward sale agreements in 2021. On December 30, 2022, we settled forward sales agreements with respect to 1,162,071 shares of our common stock for net proceeds of $93.8 million. Had we settled the remaining 289,403 shares under the outstanding forward sale agreements as of December 31, 2022, we would have generated net proceeds of approximately $21.7 million. At December 31, 2022, we had $63.1 million of equity available for issuance under the program. Dividends Declared - For the years ended December 31, 2022 and 2021, we declared and paid dividends of $2.48 per share ($0.62 per share quarterly) and $2.32 per share ($0.58 per share quarterly), respectively. In January 2023, we declared a dividend of $0.65 per share ($2.60 per share on an annualized basis) for shareholders of record on February 24, 2023, payable on March 10, 2023. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Comprehensive Income (Loss) Note [Text Block] | ACCUMULATED OTHER COMPREHENSIVE LOSS The following table sets forth the balance in accumulated other comprehensive loss for the periods indicated: Accumulated Other Comprehensive Income (Loss) (Thousands of dollars) January 1, 2021 $ (7,777) Pension and other postemployment benefit plans obligations Other comprehensive income before reclassification, net of tax of $11 78 Amounts reclassified from accumulated other comprehensive income (loss), net of tax of $(390) 1,172 Other comprehensive income 1,250 December 31, 2021 (6,527) Pension and other postemployment benefit plans obligations Other comprehensive income before reclassification, net of tax of $(1,669) 5,701 Amounts reclassified from accumulated other comprehensive income (loss), net of tax of $(36) 122 Other comprehensive income 5,823 December 31, 2022 $ (704) The following table sets forth the effect of reclassifications from accumulated other comprehensive loss on our consolidated statements of income for the periods indicated: Details about Accumulated Other Comprehensive Income (Loss) Components Affected Line Item in the Consolidated Statements of Income Years Ended December 31, 2022 2021 2020 ( Thousands of dollars ) Pension and other postemployment benefit plan obligations (a) Amortization of net loss $ 17,010 $ 45,896 $ 42,492 Amortization of unrecognized prior service cost (credit) 289 (279) (117) 17,299 45,617 42,375 Regulatory adjustments (b) (17,141) (44,055) (41,183) 158 1,562 1,192 Income before income taxes (36) (390) (298) Income tax expense Total reclassifications for the period $ 122 $ 1,172 $ 894 Net income (a) These components of accumulated other comprehensive loss are included in the computation of net periodic benefit cost. See Note 14 for additional information regarding our net periodic benefit cost. (b) Regulatory adjustments represent pension and other postemployment benefit costs expected to be recovered through rates and are deferred as part of our regulatory assets. See Note 10 for additional information regarding our regulatory assets and liabilities. |
EARNINGS PER SHARE (Notes)
EARNINGS PER SHARE (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
EARNINGS PER SHARE OF COMMON STOCK, BASIC AND DILUTED [Line Items] | |
Earnings Per Share [Text Block] | EARNINGS PER SHARE Basic EPS is calculated by dividing net income by the daily weighted-average number of common shares outstanding during the periods presented, which includes fully vested stock awards that have not yet been issued as common stock. Diluted EPS is based on shares outstanding for the calculation of basic EPS, plus unvested stock awards granted under our compensation plans and equity forward sale agreements, but only to the extent these instruments dilute earnings per share. The following tables set forth the computation of basic and diluted EPS from continuing operations for the periods indicated: Year Ended December 31, 2022 Income Shares Per Share ( Thousands, except per share amounts ) Basic EPS Calculation Net income available for common stock $ 221,742 54,207 $ 4.09 Diluted EPS Calculation Effect of dilutive securities — 131 Net income available for common stock and common stock equivalents $ 221,742 54,338 $ 4.08 Year Ended December 31, 2021 Income Shares Per Share ( Thousands, except per share amounts ) Basic EPS Calculation Net income available for common stock $ 206,434 53,575 $ 3.85 Diluted EPS Calculation Effect of dilutive securities — 99 Net income available for common stock and common stock equivalents $ 206,434 53,674 $ 3.85 Year Ended December 31, 2020 Income Shares Per Share ( Thousands, except per share amounts ) Basic EPS Calculation Net income available for common stock $ 196,412 53,133 $ 3.70 Diluted EPS Calculation Effect of dilutive securities — 237 Net income available for common stock and common stock equivalents $ 196,412 53,370 $ 3.68 |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Fair Value Disclosures | DERIVATIVE FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS Derivative Instruments - At December 31, 2022, we held purchased natural gas call options for the heating season ending March 2023, with total notional amounts of 19.4 Bcf, for which we paid premiums of $14.1 million, and which had no fair value. At December 31, 2021, we held purchased natural gas call options for the heating season ended March 2022, with total notional amounts of 13.2 Bcf, for which we paid premiums of $9.5 million, and which had a fair value of $3.6 million. These contracts are included in, and recoverable through, our purchased-gas cost adjustment mechanisms. Additionally, premiums paid, changes in fair value and any settlements received associated with these contracts are deferred as part of our unrecovered purchased-gas costs in our consolidated balance sheets. Our natural gas call options are classified as Level 1, as fair value amounts are based on unadjusted quoted prices in active markets including settled prices on the New York Mercantile Exchange. There were no transfers between levels for the periods presented. Other Financial Instruments - The approximate fair value of cash and cash equivalents, restricted cash and cash equivalents, accounts receivable and accounts payable is equal to book value, due to the short-term nature of these items. Our cash and cash equivalents and restricted cash and cash equivalents are comprised of cash and money market accounts, which we consider to be Level 1. At December 31, 2022, other current and noncurrent assets included $9.7 million of corporate bonds and $4.7 million of United States treasury notes, for which the fair value approximates our cost, and are classified as Level 2 and Level 1, respectively. At December 31, 2021, other current and noncurrent assets included $6.9 million of corporate bonds and $3.5 million of United States treasury notes, for which the fair value approximates our cost, and are classified as Level 2 and Level 1, respectively. Short-term notes payable and commercial paper are due upon demand and, therefore, the carrying amounts approximate fair value and are classified as Level 1. The book value of our long-term debt, including current maturities, was $2.7 billion and $3.7 billion at December 31, 2022 and 2021, respectively. The estimated fair value of our long-term debt, including current maturities, was $2.5 billion and $3.9 billion at December 31, 2022 and 2021, respectively. The estimated fair value of our long-term debt was determined using quoted market prices, and is considered Level 2. |
REGULATORY ASSETS AND LIABILITI
REGULATORY ASSETS AND LIABILITIES (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
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, net of amortization, and liabilities for the periods indicated: 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 other postemployment benefit costs See Note 14 — 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 14 (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. December 31, 2021 Remaining Recovery Period Current Noncurrent Total ( Thousands of dollars ) Winter weather event costs (a) $ 1,536,054 $ 428,023 $ 1,964,077 Under-recovered purchased-gas costs 1 year 31,863 — 31,863 Pension and other postemployment benefit costs See Note 14 11,507 260,559 272,066 Reacquired debt costs 6 years 812 4,070 4,882 MGP remediation costs 15 years 98 29,841 29,939 Ad-valorem tax 1 year 8,561 — 8,561 WNA 1 year 10,044 — 10,044 Customer credit deferrals 1 year 10,685 — 10,685 Other 1 to 18 years 2,052 2,369 4,421 Total regulatory assets, net of amortization 1,611,676 724,862 2,336,538 Income tax rate changes (a) — (552,928) (552,928) Over-recovered purchased-gas costs 1 year (8,090) — (8,090) Total regulatory liabilities (8,090) (552,928) (561,018) Net regulatory assets and liabilities $ 1,603,586 $ 171,934 $ 1,775,520 (a) Recovery period varies by jurisdiction. See discussion below for additional information regarding our 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. We are not aware of any evidence that these costs will not be recoverable through either riders, base rates, or securitization. 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 - Beginning in the first quarter 2021, Oklahoma Natural Gas began deferring to a regulatory asset the extraordinary costs associated with this unprecedented winter weather event, including commodity costs, operational costs and carrying costs, in accordance with an order issued by the OCC in March 2021. In April 2021, a bill permitting the state of Oklahoma to pursue securitized financing of extraordinary expenses, such as fuel costs, financing costs and other operational costs incurred by regulated utilities during extreme weather events, was signed into law. This law gives the OCC the authority to approve amounts to be recovered from the issuance of ratepayer-backed securitized bonds by the ODFA. In April 2021, Oklahoma Natural Gas submitted an initial application requesting a financing order pursuant to the securitization legislation in Oklahoma. In January 2022, the OCC approved the financing order that reflected the terms of a settlement agreement, which included an agreement that all extreme gas purchase and extraordinary costs incurred as a result of Winter Storm Uri were reasonable and prudent and a financing order should be issued to recover these costs through securitization. Pursuant to the securitization statute in Oklahoma, the Oklahoma Supreme Court validated that the bond issuance proposed by the ODFA complied with the securitization statute and the laws of Oklahoma in May 2022. In August 2022, the ODFA completed the issuance of $1.35 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. 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 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. 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 March 2021, the KCC issued an order adopting the KCC staff’s recommendation to open company-specific dockets to accept each utility’s filing of financial impact compliance reports and permit the KCC staff to conduct a review of the utility’s compliance report and its actions during Winter Storm Uri. In April 2021, a bill permitting the utilities to pursue securitization to finance extraordinary expenses, such as fuel costs incurred during extreme weather events, was signed into law by the Kansas governor. The law gives the KCC the authority to oversee and authorize the issuance of ratepayer-backed securitized bonds issued by a public utility. In May 2021, Kansas Gas Service filed a motion in its company-specific docket opened by the KCC, requesting a limited waiver of the penalty provisions of its tariff to eliminate the multipliers in the penalty calculation when calculating the penalties to assess on marketers and individually-balanced transportation customers for their unauthorized natural gas usage during Winter Storm Uri. In March 2022, the KCC issued an order approving a settlement which modified the penalty provisions of Kansas Gas Service’s tariffs and included a carrying charge of two percent on amounts due to Kansas Gas Service. Amounts collected from these penalties will reduce the regulatory asset for the winter weather event, up to $52.6 million. Through December 31, 2022, we have collected $50.5 million of these penalties. In July 2021, Kansas Gas Service submitted its financial plan to the KCC as required by the company-specific docket opened by the KCC in March 2021. The plan includes a proposal for a newly formed, bankruptcy remote subsidiary of the Company to issue securitized utility tariff bonds to recover the extraordinary costs resulting from Winter Storm Uri from Kansas Gas Service’s customers. In February 2022, the KCC issued an order approving a unanimous settlement agreement that allows Kansas Gas Service to recover extraordinary costs, net of any penalties recovered from marketers and individually-balanced transportation customers, plus carrying costs, by seeking a financing order from the KCC for the issuance of securitized utility tariff bonds. In March 2022, Kansas Gas Service submitted its application for a financing order to the KCC as contemplated by the unanimous settlement agreement, requesting approval to issue securitized utility tariff bonds to recover extraordinary costs resulting from Winter Storm Uri and flexibility to recover the costs. In July 2022, Kansas Gas Service, the KCC Staff and the Citizens’ Utility Ratepayer Board reached a settlement agreement for the issuance of a financing order allowing a newly formed, bankruptcy remote subsidiary of the Company to issue securitized utility tariff bonds. In August 2022, the KCC issued an order approving the agreement and also issued a financing order. As part of the order, we created KGSS-I, a special-purpose, wholly-owned subsidiary of ONE Gas, and filed a registration statement with the SEC, for the purpose of issuing securitized utility tariff bonds. The registration statement was declared effective on November 7, 2022. 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 4 for additional information about the Securitized Utility Tariff Bonds and Note 11 for additional information about the securitization transaction. 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 November 2021, the RRC approved a unanimous settlement agreement among Texas Gas Service, the other natural gas utilities in Texas participating in the securitization process, the staff of the RRC and all intervenors. The settlement agreement provides that all costs incurred by Texas Gas Service to purchase natural gas during Winter Storm Uri were reasonable, necessary and prudently incurred. 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 Texas Natural Gas Securitization Finance Corporation, a new independent public authority, that will issue the securitized bonds, which are expected to be issued by April 2023. At December 31, 2022, Texas Gas Service has deferred approximately $243.1 million in extraordinary costs associated with Winter Storm Uri, which includes $43.8 million attributable to the former West Texas service area. Pursuant to the approved settlement order, Texas Gas Service is collecting the extraordinary costs, including carrying costs, associated with Winter Storm Uri attributable to the former West Texas service area from those customers over a period of three years that began in January 2022. General - In accordance with these regulatory orders associated with the winter weather event, our regulatory asset totaled approximately $258.2 million in extraordinary costs for natural gas purchases, related financing and carrying costs and other operational costs that have not been recovered at December 31, 2022. The amounts deferred include invoiced costs for natural gas purchases that have not been paid as we work with our suppliers to resolve discrepancies in invoiced amounts. The amounts deferred may be adjusted as the differences are resolved. As these amounts are related to the gas purchase costs associated with Winter Storm Uri, which are deferred, future adjustments to the amounts deferred 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 KCC. See Note 17 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 the customers’ bills for 12 months to refund the over-collected revenue or bill the under-collected revenue. The customer credit deferrals and the 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 15 for additional information regarding the impact of income tax rate changes during the year ended December 31, 2022. Recovery through rates resulted in amortization of regulatory assets of approximately $9.4 million, $5.5 million and $3.2 million for the years ended December 31, 2022, 2021 and 2020, respectively. |
VARIABLE INTEREST ENTITIES (Not
VARIABLE INTEREST ENTITIES (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entity Disclosure | VARIABLE INTEREST ENTITY KGSS-I is a special-purpose, wholly owned subsidiary of ONE Gas that was formed for the purpose of issuing securitized utility tariff bonds to recover extraordinary costs incurred by Kansas Gas Service resulting from Winter Storm Uri. On November 18, 2022, the securitized financing was complete. KGSS-I’s assets cannot be used to settle ONE Gas’ obligations and the holders of the Securitized Utility Tariff Bonds have no recourse against ONE Gas. See Notes 1, 4 and 10 for additional information about the securitization financing. Because KGSS-I’s equity at risk is less than 1 percent of its total assets, it is considered to be a variable interest entity. Through its equity ownership interest and role as servicer, ONE Gas has the power to direct the most significant financial and operating activities of KGSS-I, including billing, collections, and remittance of customer cash receipts to enable KGSS-I to service the principal and interest payments due under the Securitized Utility Tariff Bonds. Therefore, ONE Gas is the primary beneficiary of KGSS-I, and as a result, KGSS-I is included in the consolidated financial statements of ONE Gas. No gain or loss was recognized upon initial consolidation. The following table summarizes the impact of KGSS-I on our consolidated balance sheets: December 31, 2022 (Thousands of dollars) Restricted cash and cash equivalents $ 8,446 Accounts receivable 4,862 Securitized intangible asset, net 323,838 Current maturities of securitized utility tariff bonds 20,716 Accounts payable 3,204 Accrued interest 2,202 Securitized utility tariff bonds, excluding current maturities, net of issuance costs 309,343 Equity $ 1,681 The following table summarizes the impact of KGSS-I on our consolidated statements of income: Year ended December 31, 2022 (Thousands of dollars) Operating revenues $ 5,769 Operating expense (52) Amortization expense (3,521) Interest income 6 Interest expense (2,202) Income before income taxes $ — The following table summarizes the amortization expense related to the securitized intangible asset expected to be recognized in our consolidated statements of income: For the year ending: (Thousands of dollars) 2023 $ 27,851 2024 $ 27,843 2025 $ 29,391 2026 $ 31,025 2027 $ 32,751 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Entity Information | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT The following table sets forth our property, plant and equipment by property type, for the periods indicated: December 31, December 31, 2022 2021 ( Thousands of dollars ) Natural gas distribution pipelines and related equipment $ 6,240,236 $ 5,836,066 Natural gas transmission pipelines and related equipment 661,379 624,528 General plant and other 782,870 712,659 Construction work in process 150,072 101,015 Property, plant and equipment 7,834,557 7,274,268 Accumulated depreciation and amortization (2,205,717) (2,083,433) Net property, plant and equipment $ 5,628,840 $ 5,190,835 We compute depreciation expense by applying composite, straight-line rates of approximately 2.5 percent to 3.5 percent as approved by various regulatory authorities. We recorded capitalized interest of $4.5 million , $4.2 million and $4.2 million for the years ended December 31, 2022, 2021 and 2020, respectively. We incurred liabilities for construction work in process that had not been paid at December 31, 2022, 2021 and 2020 of $28.6 million, $25.6 million and $24.3 million, respectively. Such amounts are not included in capital expenditures or in the change of working capital items on our consolidated statements of cash flows. |
SHARE-BASED PAYMENTS (Notes)
SHARE-BASED PAYMENTS (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Share-based Payments [Line Items] | |
Disclosure of Compensation Related Costs, Share-based Payments | SHARE-BASED PAYMENTS The ECP provides for the granting of stock-based compensation, including incentive stock options, nonstatutory stock options, stock bonus awards, restricted stock awards, restricted stock unit awards, performance stock awards and performance unit awards to eligible employees and the granting of stock awards to non-employee directors. At December 31, 2022, we have 4.3 million shares of common stock reserved for issuance under the ECP. At December 31, 2022, we had approximately 1.4 million shares available for issuance under the ECP, which reflect shares issued and estimated shares expected to be issued upon vesting of outstanding awards granted under the plan, less forfeitures. The plan allows for the deferral of awards granted in stock or cash, in accordance with the Code section 409A requirements. Compensation expense for our ECP share-based payment plans was $6.8 million, net of tax benefits of $2.3 million, for 2022, $7.5 million, net of tax benefits of $2.5 million, for 2021, and $7.0 million, net of tax benefits of $2.3 million, for 2020. Restricted Stock Unit Awards - We have granted restricted stock unit awards to key employees that vest over a service period of generally three years and entitle the grantee to receive shares of our common stock. Restricted stock unit awards granted accrue dividend equivalents in the form of additional restricted stock units prior to vesting. Restricted stock unit awards are measured at fair value as if they were vested and issued on the grant date and adjusted for estimated forfeitures. Compensation expense is recognized on a straight-line basis over the vesting period of the award. A forfeiture rate of 3 percent per year based on historical forfeitures under our share-based payment plans is used. Performance Stock Unit Awards - We have granted performance stock unit awards to key employees. The shares of common stock underlying the performance stock units vest at the expiration of a service period of generally three years if certain performance criteria are met by us as determined by the Executive Compensation Committee of the Board of Directors. Upon vesting, a holder of performance stock units is entitled to receive a number of shares of common stock equal to a percentage (0 percent to 200 percent) of the performance stock units granted, based on our total shareholder return over the vesting period, compared with the total shareholder return of a peer group of other utilities over the same period. If paid, the outstanding performance stock unit awards entitle the grantee to receive shares of our common stock. The outstanding performance stock unit awards are equity awards with a market-based condition, which results in the compensation expense for these awards being recognized on a straight-line basis over the requisite service period, provided that the requisite service period is fulfilled, regardless of when, if ever, the market condition is satisfied. The performance stock unit awards granted accrue dividend equivalents in the form of additional performance stock units prior to vesting. The fair value of these performance stock units was estimated on the grant date based on a Monte Carlo model. The compensation expense on these awards will only be adjusted for forfeitures. A forfeiture rate of 3 percent per year based on historical forfeitures under our share-based payment plans is used. Restricted Stock Unit Award Activity As of December 31, 2022, there was $3.7 million of total unrecognized compensation expense related to the nonvested restricted stock unit awards, which is expected to be recognized over a weighted-average period of 1.8 years. The following tables set forth activity and various statistics for restricted stock unit awards outstanding under the respective plans for the period indicated: Number of Weighted- Nonvested at December 31, 2021 94,274 $ 82.16 Granted 56,420 $ 76.96 Vested (28,830) $ 78.91 Forfeited (5,231) $ 84.06 Nonvested at December 31, 2022 116,633 $ 79.32 2022 2021 2020 Weighted-average grant date fair value (per share) $ 76.96 $ 72.69 $ 96.21 Fair value of shares granted (thousands of dollars) $ 4,342 $ 3,660 $ 3,005 For the years ended December 31, 2022, 2021 and 2020, the fair value of restricted stock vested was $2.9 million, $3.4 million, and $3.3 million, respectively. Performance Stock Unit Award Activity As of December 31, 2022, there was $8.0 million of total unrecognized compensation expense related to the nonvested performance stock unit awards, which is expected to be recognized over a weighted-average period of 1.8 years. The following tables set forth activity and various statistics related to our performance stock unit awards and the assumptions used by us in the valuations of the 2022, 2021 and 2020 grants at the grant date: Number of Weighted- Nonvested at December 31, 2021 198,599 $ 90.13 Granted 87,266 $ 95.80 Vested (63,389) $ 89.86 Forfeited (7,939) $ 91.41 Nonvested at December 31, 2022 214,537 $ 92.47 2022 2021 2020 Volatility (a) 34.00% 32.70% 16.40% Dividend yield 3.22% 3.19% 2.25% Risk-free interest rate (b) 1.65% 0.20% 1.40% (a) - Volatility based on historical volatility over three years using daily stock price observations of our peer utilities. (b) - Using 3-year treasury rate. 2022 2021 2020 Weighted-average grant date fair value (per share) $ 95.80 $ 82.51 $ 102.77 Fair value of shares granted (thousands of dollars) $ 8,360 $ 8,860 $ 6,502 For the years ended December 31, 2022, 2021 and 2020, the fair value of performance stock vested was $5.2 million, $7.2 million, and $10.2 million, respectively. Employee Stock Purchase Plan We have reserved a total of 1.25 million shares of common stock for issuance under our ESPP. Employees can choose to have up to 10 percent of their annual base pay withheld to purchase our common stock, subject to terms and limitations of the plan. The purchase price of the stock is 85 percent of the lower of the average market price of our common stock on the grant date or exercise date. Approximately 42 percent, 44 percent and 50 percent of employees participated in the plan in 2022, 2021 and 2020, respectively. For the years ended December 31, 2022, 2021 and 2020, employees purchased 86,657, 89,240, and 92,507 shares, respectively, at an average price of $65.21, $63.41 and $64.77, respectively. Compensation expense related to our ESPP, before taxes, was $1.1 million for each of the years ended December 31, 2022, 2021 and 2020. |
EMPLOYEE BENEFIT PLANS (Notes)
EMPLOYEE BENEFIT PLANS (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
EMPLOYEE BENEFIT PLANS [Abstract] | |
Pension and Other Postemployment Benefits Disclosure [Text Block] | EMPLOYEE BENEFIT PLANS Defined Benefit Pension and Other Postemployment Benefit Plans Defined Benefit Pension Plans - We have a defined benefit pension plan and a supplemental executive retirement plan, both of which are closed to new participants. Certain employees of the Texas Gas Service division are entitled to benefits under a frozen cash-balance pension plan. We fund our defined benefit pension costs at a level needed to maintain or exceed the minimum funding levels required by the Employee Retirement Income Security Act of 1974, as amended, and the Pension Protection Act of 2006. Other Postemployment Benefit Plans - We sponsor health and welfare plans that provide postemployment medical and life insurance benefits to certain employees who retire with at least five years of service. The postemployment medical plan is contributory based on hire date, age and years of service, with retiree contributions adjusted periodically, and contains other cost-sharing features such as deductibles and coinsurance. Actuarial Assumptions - The following table sets forth the weighted-average assumptions used to determine benefit obligations for pension and postemployment benefits for the periods indicated: December 31, 2022 2021 Discount rate - pension plans 5.60% 3.05% Discount rate - other postemployment plans 5.70% 3.00% Compensation increase rate 3.60% - 5.00% 3.10% - 5.00% The following table sets forth the weighted-average assumptions used by us to determine the periodic benefit costs for pension and postemployment benefits for the periods indicated: Years Ended December 31, 2022 2021 2020 Discount rate - pension plans 3.05%/4.55% (a) 2.80% 3.50% Discount rate - other postemployment plans 3.00% 2.70% 3.40% Expected long-term return on plan assets - pension plans 6.40% 7.15% 7.20% Expected long-term return on plan assets - other postemployment plans 5.85% 7.50% 7.65% Compensation increase rate 3.10% - 5.00% 3.10% - 3.90% 3.10% - 4.00% (a) Pension plans were remeasured as of April 30, 2022. We determine our discount rates annually. We estimate our discount rate based upon a comparison of the expected cash flows associated with our future payments under our defined benefit pension and other postemployment obligations to a hypothetical bond portfolio created using high-quality bonds that closely match expected cash flows. Bond portfolios are developed by selecting a bond for each of the next 60 years based on the maturity dates of the bonds. Bonds selected to be included in the portfolios are only those rated by Moody’s as AA- or better and exclude callable bonds, bonds with less than a minimum issue size, yield outliers and other filtering criteria to remove unsuitable bonds. We determine our overall expected long-term rate of return on plan assets based on our review of historical returns and economic growth models. We update our assumed mortality rates to incorporate new tables issued by the Society of Actuaries as needed. Regulatory Treatment - The OCC, KCC and regulatory authorities in Texas have approved the recovery of pension 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 current funding requirements and 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 capitalize all eligible service cost and non-service cost components pursuant to the accounting requirements of ASC Topic 980 (Regulated Operations) for rate-regulated entities, as these costs are authorized by our regulators to be included in capitalized costs. Noncurrent regulatory assets in our consolidated balance sheets reflect the capitalized non-service cost components of $2.8 million and $6.1 million as of December 31, 2022 and December 31, 2021, respectively. See Note 10 for additional information. Obligations and Funded Status - The following table sets forth our defined benefit pension and other postemployment benefit plans, benefit obligations and fair value of plan assets for the periods indicated: Pension Benefits Other Postemployment Benefits December 31, December 31, 2022 2021 2022 2021 Changes in Benefit Obligation (Thousands of dollars) Benefit obligation, beginning of period $ 1,049,990 $ 1,077,641 $ 222,806 $ 239,530 Service cost 10,369 13,811 1,274 1,587 Interest cost 36,150 29,458 6,448 6,251 Plan participants’ contributions — — 3,035 3,226 Actuarial loss (gain) (259,261) (19,587) (48,609) (8,894) Benefits paid (55,326) (51,333) (16,612) (18,894) Plan amendments 2,711 — — — Benefit obligation, end of period 784,633 1,049,990 168,342 222,806 Change in Plan Assets Fair value of plan assets, beginning of period 1,013,244 987,583 231,994 230,895 Actual return (loss) on plan assets (190,484) 75,999 (38,432) 14,786 Employer contributions 1,527 995 1,892 1,981 Plan participants’ contributions — — 3,035 3,226 Benefits paid (55,326) (51,333) (16,612) (18,894) Fair value of assets, end of period 768,961 1,013,244 181,877 231,994 Benefit Asset (Obligation), net at December 31 $ (15,672) $ (36,746) 13,535 $ 9,188 Other noncurrent assets 5,267 — 13,535 9,188 Current liabilities (1,352) (1,521) — — Noncurrent liabilities (19,587) (35,225) — — Benefit Asset (Obligation), net at December 31 $ (15,672) $ (36,746) $ 13,535 $ 9,188 The accumulated benefit obligation for our defined benefit pension plans was $746.8 million and $1.0 billion at December 31, 2022 and 2021, respectively. For the years ended December 31, 2022 and 2021, the pension benefit obligations experienced actuarial gains of $259.3 million and $19.6 million, respectively, primarily due to the impact of increases in the discount rates used to calculate the benefit obligations. In 2023, our contributions are expected to be $1.4 million to our defined benefit pension plans, and no contributions are expected to be made to our other postemployment benefit plans. Components of Net Periodic Benefit Cost - The following tables set forth the components of net periodic benefit cost, prior to regulatory deferrals, for our defined benefit pension and other postemployment benefit plans for the period indicated: Pension Benefits Year Ended December 31, 2022 2021 2020 (Thousands of dollars) Components of net periodic benefit cost Service cost $ 10,369 $ 13,811 $ 12,869 Interest cost (a) 36,150 29,458 34,179 Expected return on assets (a) (58,528) (62,382) (61,119) Amortization of unrecognized prior service cost (a) 248 — — Amortization of net loss (a) 16,793 45,523 42,319 Net periodic benefit cost $ 5,032 $ 26,410 $ 28,248 (a) These amounts, net of any amounts capitalized as a regulatory asset since adoption of ASU 2017-07 on January 1, 2018, have been recognized as other income (expense), net in the consolidated statements of income. See Note 16 for additional detail of our other income (expense), net. Other Postemployment Benefits Year Ended December 31, 2022 2021 2020 (Thousands of dollars) Components of net periodic benefit cost Service cost $ 1,274 $ 1,587 $ 1,692 Interest cost (a) 6,448 6,251 7,557 Expected return on assets (a) (13,181) (16,807) (15,469) Amortization of unrecognized prior service cost (credit) (a) 41 (279) (117) Amortization of net loss (a) 217 373 173 Net periodic benefit cost (credit) $ (5,201) $ (8,875) $ (6,164) (a) These amounts, net of any amounts capitalized as a regulatory asset since adoption of ASU 2017-07 on January 1, 2018, have been recognized as other income (expense), net in the consolidated statements of income. See Note 16 for additional detail of our other income (expense), net. We use a December 31 measurement date for our plans. On April 30, 2022, we amended our defined benefit pension plans to change the variable cost of living adjustment for eligible participants to a fixed rate. Accordingly, we remeasured our net benefit obligations as of April 30, 2022, resulting in an adjustment of approximately $7.2 million to our pension expense, net of capitalization and regulatory deferrals, for the year ended December 31, 2022. Other Comprehensive Income (Loss) - The following table sets forth the amounts recognized in other comprehensive income (loss), net of regulatory deferrals, related to our defined benefit pension benefits for the period indicated: Pension Benefits Year Ended December 31, 2022 2021 2020 (Thousands of dollars) Net gain (loss) arising during the period $ 7,369 $ 67 $ (2,519) Amortization of loss 159 1,562 1,192 Deferred income taxes (1,705) (379) 289 Total recognized in other comprehensive income (loss) $ 5,823 $ 1,250 $ (1,038) Due to our regulatory deferrals, there were no amounts recognized in other comprehensive income (loss) related to our other postemployment benefits for the periods presented. The tables below set forth the amounts in accumulated other comprehensive loss that had not yet been recognized as components of net periodic benefit expense for the periods indicated: Pension Benefits December 31, 2022 2021 (Thousands of dollars) Prior service cost $ (2,463) $ — Accumulated loss (245,290) (272,332) Accumulated other comprehensive loss (247,753) (272,332) Regulatory asset for regulated entities 246,975 264,027 Accumulated other comprehensive loss (778) (8,305) Deferred income taxes 74 1,778 Accumulated other comprehensive loss, $ (704) $ (6,527) Other Postemployment Benefits December 31, 2022 2021 (Thousands of dollars) Prior service cost $ (153) $ (194) Accumulated loss (8,557) (5,887) Accumulated other comprehensive loss (8,710) (6,081) Regulatory asset for regulated entities 8,710 6,081 Accumulated other comprehensive loss $ — $ — Health Care Cost Trend Rates - The following table sets forth the assumed health care cost-trend rates for the periods indicated: 2022 2021 Health care cost-trend rate assumed for next year 6.50% 6.00% Rate to which the cost-trend rate is assumed to decline 4.50% 4.50% Year that the rate reaches the ultimate trend rate 2030 2028 Plan Assets - Our investment strategy is to invest plan assets in accordance with sound investment practices that emphasize long-term fundamentals. The goal of this strategy is to maximize investment returns while managing risk in order to meet the plan’s current and projected financial obligations. To achieve this strategy, we have established a liability-driven investment strategy to change the allocations as the funded status of the defined benefit pension plan increases. The plan’s investments include a diverse blend of various domestic and international equities, investment-grade debt securities which mirror the cash flows of our liability, insurance contracts and alternative investments. The current target allocation for the assets of our defined benefit pension plan is as follows: Investment-grade bonds 60.0 % U.S. large-cap equities 14.0 % Alternative investments 10.0 % Developed foreign large-cap equities 7.0 % Mid-cap equities 5.0 % Emerging markets equities 1.0 % Small-cap equities 3.0 % Total 100 % As part of our risk management for the plans, minimums and maximums have been set for each of the asset classes listed above. All investment managers for the plan are subject to certain restrictions on the securities they purchase and, with the exception of indexing purposes, are prohibited from owning our stock. The current target allocation for the assets of our other postemployment benefits plan is 90 percent fixed income securities and 10 percent equity securities. The following tables set forth our pension and other postemployment benefits plan assets by fair value category as of the measurement date: Pension Benefits December 31, 2022 Asset Category Level 1 Level 2 Level 3 Total (Thousands of dollars) Investments: Equity securities (a) $ 150,027 $ — $ — $ 150,027 Government obligations — 160,799 — 160,799 Corporate obligations (b) — 329,973 — 329,973 Cash and money market funds (c) 4,466 22,185 — 26,651 Insurance contracts and group annuity contracts — — 14,480 14,480 Other investments (d) — — 87,031 87,031 Total assets $ 154,493 $ 512,957 $ 101,511 $ 768,961 (a) - This category represents securities of the various market sectors from diverse industries. (b) - This category represents bonds from diverse industries. (c) - This category primarily represents money market funds. (d) - This category represents alternative investments such as hedge funds and other financial instruments. Pension Benefits December 31, 2021 Asset Category Level 1 Level 2 Level 3 Total (Thousands of dollars) Investments: Equity securities (a) $ 223,871 $ — $ — $ 223,871 Government obligations — 205,741 — 205,741 Corporate obligations (b) — 440,445 — 440,445 Cash and money market funds (c) 3,864 30,546 — 34,410 Insurance contracts and group annuity contracts — — 17,301 17,301 Other investments (d) — 20 91,456 91,476 Total assets $ 227,735 $ 676,752 $ 108,757 $ 1,013,244 (a) - This category represents securities of the various market sectors from diverse industries. (b) - This category represents bonds from diverse industries. (c) - This category primarily represents money market funds. (d) - This category represents alternative investments such as hedge funds and other financial instruments. Other Postemployment Benefits December 31, 2022 Asset Category Level 1 Level 2 Level 3 Total (Thousands of dollars) Investments: Equity securities (a) $ 5,983 $ — $ — $ 5,983 Government obligations — 43,291 — 43,291 Corporate obligations (b) — 38,095 — 38,095 Cash and money market funds (c) 750 7,621 — 8,371 Insurance contracts and group annuity contracts (d) — 86,137 — 86,137 Total assets $ 6,733 $ 175,144 $ — $ 181,877 (a) - This category represents securities of the various market sectors from diverse industries. (b) - This category represents bonds from diverse industries. (c) - This category primarily represents money market funds. (d) - This category includes equity securities and bonds held in a captive insurance product. Other Postemployment Benefits December 31, 2021 Asset Category Level 1 Level 2 Level 3 Total (Thousands of dollars) Investments: Equity securities (a) $ 25,577 $ — $ — $ 25,577 Government obligations — 41,366 — 41,366 Corporate obligations (b) — 41,601 — 41,601 Cash and money market funds (c) 542 12,990 — 13,532 Insurance contracts and group annuity contracts (d) — 109,918 — 109,918 Total assets $ 26,119 $ 205,875 $ — $ 231,994 (a) - This category represents securities of the various market sectors from diverse industries. (b) - This category represents bonds from diverse industries. (c) - This category primarily represents money market funds. (d) - This category includes equity securities and bonds held in a captive insurance product. Insurance contracts and group annuity contracts include investments in the Immediate Participation Guarantee Fund (“IPG Fund”) with John Hancock and are valued at fair value. John Hancock invests the IPG Fund in its general fund portfolio. The contract value of the IPG Fund at the end of the year, which approximates fair value, is estimated. The difference between this estimated balance and the actual balance, as subsequently determined by John Hancock, is charged or credited to the net assets of the plans. Certain investments that are categorized as money market funds in Level 2 and “Other investments” in Level 3 represent alternative investments such as hedge funds and other financial instruments measured using the net asset value per share (or its equivalent) practical expedient. The following tables set forth additional information regarding commitments and redemption limitations of these other investments at the periods indicated: December 31, 2022 Fair Value Unfunded Commitments Redemption Frequency Redemption Notice Period (in thousands) (in days) Grosvenor Registered Multi Limited Partnership $ 40,160 $ — quarterly 65 K2 Institutional Investors II Limited Partnership $ 46,871 $ — quarterly 91 December 31, 2021 Fair Value Unfunded Commitments Redemption Frequency Redemption Notice Period (in thousands) (in days) Grosvenor Registered Multi Limited Partnership $ 44,818 $ — quarterly 65 K2 Institutional Investors II Limited Partnership $ 46,638 $ — quarterly 91 The following table sets forth the reconciliation of Level 3 fair value measurements of our pension plans for the periods indicated: Pension Benefits Insurance Other Total (Thousands of dollars) January 1, 2021 $ 24,603 $ 87,634 $ 112,237 Unrealized gains — 1,625 1,625 Unrealized losses (3,368) — (3,368) Purchases — 2,197 2,197 Settlements (3,934) — (3,934) December 31, 2021 $ 17,301 $ 91,456 $ 108,757 Unrealized gains 1,467 — 1,467 Unrealized losses — (7,458) (7,458) Purchases 182 3,033 3,215 Settlements (4,470) — (4,470) December 31, 2022 $ 14,480 $ 87,031 $ 101,511 Pension and Other Postemployment Benefit Payments - Benefit payments for our defined benefit pension and other postemployment benefit plans for the year ended December 31, 2022 were $55.3 million and $16.6 million, respectively. The following table sets forth the pension benefits and other postemployment benefits payments expected to be paid in 2023-2032: Pension Other Postemployment Benefits to be paid in: (Thousands of dollars) 2023 $ 53,970 $ 15,502 2024 $ 54,807 $ 15,150 2025 $ 55,446 $ 14,878 2026 $ 56,241 $ 14,488 2027 $ 56,546 $ 14,199 2028 through 2032 $ 287,424 $ 65,748 The expected benefits to be paid are based on the same assumptions used to measure our benefit obligations at December 31, 2022, and include estimated future employee service. Other Employee Benefit Plans 401(k) Plan - We have a 401(k) plan which covers all full-time employees. Employee contributions are discretionary and we match 100 percent of each participant’s eligible contribution up to 6 percent of eligible compensation, subject to certain limits. Our contributions to the plan were $15.3 million, $14.3 million and $13.8 million in 2022, 2021 and 2020, respectively. Effective December 30, 2021, our profit sharing-plan was merged with and into our 401(k) Plan. We plan to make a profit-sharing contribution to the 401(k) Plan each quarter equal to 1 percent of each participant’s eligible compensation during the quarter. Additional discretionary profit-sharing contributions may be made at the end of each year. Our profit-sharing contributions made to the plan were $10.9 million, $9.9 million and $9.4 million in 2022, 2021 and 2020, respectively. |
INCOME TAXES (Notes)
INCOME TAXES (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Income tax [Line Items] | |
INCOME TAXES | INCOME TAXES The following table sets forth our provision for income taxes for the periods indicated: Years Ended December 31, 2022 2021 2020 ( Thousands of dollars ) Current income tax provision (benefit) Federal $ 61,745 $ (1,568) $ 20,129 State 6,815 (1,565) 2,965 Total current income tax provision (benefit) 68,560 (3,133) 23,094 Deferred income tax provision (benefit) Federal (22,234) 37,810 10,757 State 200 5,639 7,728 Total deferred income tax provision (benefit) (22,034) 43,449 18,485 Total provision for income taxes $ 46,526 $ 40,316 $ 41,579 The following table is a reconciliation of our income tax provision for the periods indicated: Years Ended December 31, 2022 2021 2020 ( Thousands of dollars ) Income before income taxes $ 268,268 $ 246,750 $ 237,991 Federal statutory income tax rate 21 % 21 % 21 % Provision for federal income taxes 56,335 51,817 49,978 State income taxes, net of federal tax benefit 7,016 4,074 10,693 Amortization of EDIT regulatory liability (17,986) (17,289) (17,031) Tax (expense) benefit for employee share-based compensation 350 (469) (1,489) Other, net 811 2,183 (572) Total provision for income taxes $ 46,526 $ 40,316 $ 41,579 As of December 31, 2022, we have no uncertain tax positions. Changes in tax laws or tax rates are recognized in the financial reporting period that includes the enactment date. As a regulated entity, the decrease in ADIT resulting from a change in tax laws or tax rates is recorded as a regulatory liability and is subject to refund to our customers. In May 2021, a bill amending the Oklahoma state income tax code was signed into law that reduced the state income tax rate to four percent from six percent beginning January 1, 2022. As a result of the enactment of this legislation, we remeasured our ADIT. As a regulated entity, the reduction in ADIT of $29.3 million was recorded as a regulatory liability. T he impact of the change in the state income tax rate on Oklahoma Natural Gas’ rates, as well as the timing and am ount of the impact on the annual crediting mechanism for the EDIT regulatory liability, was included in the March 15, 2022 PBRC filing, as approved in November 2022, and was not material. Income tax expense reflects credits for the amortization of the regulatory liability associated with EDIT that was returned to customers of $18.0 million and $17.3 million for the years ending December 31, 2022, and 2021, respectively. The following table sets forth the tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and liabilities for the periods indicated: December 31, 2022 2021 ( Thousands of dollars ) Deferred tax assets Employee benefits and other accrued liabilities $ 4,256 $ 11,126 Regulatory adjustments for enacted tax rate changes 114,551 120,051 Net operating loss 161,320 424,861 Lease obligation basis 9,158 6,906 Purchased-gas cost adjustment 3,384 — Other 3,014 12,597 Total deferred tax assets 295,683 575,541 Deferred tax liabilities Excess of tax over book depreciation 792,570 734,051 Winter weather event costs 121,347 421,070 Purchased-gas cost adjustment — 37,433 Other regulatory assets and liabilities, net 71,180 71,541 Right-of-use asset basis 9,042 6,730 Total deferred tax liabilities 994,139 1,270,825 Net deferred tax liabilities $ 698,456 $ 695,284 We deduct our purchased gas costs for federal income tax purposes in the period they are paid. As a result of the impacts from government securitization of Winter Storm Uri, we recorded a $299.7 million decrease in our deferred tax liability for the year ended December 31, 2022. At December 31, 2022, we had $152.2 million (tax effected) of federal net operating loss carryforwards and $9.1 million (tax effected) of state net operating loss carryforwards available to offset future taxable income. We have filed our consolidated federal and state income tax returns for years 2019, 2020 and 2021. We are no longer subject to income tax examination for years prior to 2019. |
OTHER INCOME AND EXPENSE (Notes
OTHER INCOME AND EXPENSE (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Other Income and Other Expense Disclosure [Text Block] | OTHER INCOME AND OTHER EXPENSE The following table sets forth the components of other income and other expense for the periods indicated: Years Ended December 31, 2022 2021 2020 ( Thousands of dollars ) Net periodic benefit (cost) other than service cost $ 3,766 $ (3,930) $ (5,071) Earnings (losses) on investments associated with nonqualified employee benefit plans (7,197) 3,699 4,616 Other, net (752) (2,976) (2,565) Total other expense, net $ (4,183) $ (3,207) $ (3,020) |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies [Line Items] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Leases - See Note 5 of the Notes to Consolidated Financial Statements in this Annual Report for discussion of operating leases. Environmental Matters - We are subject to multiple laws and regulations regarding protection of the environment and natural and cultural resources, which affect many aspects of our present and future operations. Regulated activities include, but are not limited to, those involving air emissions, storm water and wastewater discharges, handling and disposal of solid and hazardous wastes, wetland preservation, plant and wildlife protection, hazardous materials use, storage and transportation, and pipeline and facility construction. These laws and regulations require us to obtain and/or comply with a wide variety of environmental clearances, registrations, licenses, permits and other approvals. Failure to comply with these laws, regulations, licenses and permits or the discovery of presently unknown environmental conditions may expose us to fines, penalties and/or interruptions in our operations that could be material to our results of operations. In addition, emission controls and/or other regulatory or permitting mandates under the CAA and other similar federal and state laws could require unexpected capital expenditures. We cannot assure that existing environmental statutes and regulations will not be revised or that new regulations will not be adopted or become applicable to us. Revised or additional statutes or regulations that result in increased compliance costs or additional operating restrictions could have a material adverse effect on our business, financial condition and results of operations. Our expenditures for environmental investigation and remediation compliance to-date have not been significant in relation to our financial position, results of operations or cash flows, and our expenditures related to environmental matters had no material effects on earnings or cash flows during 2022, 2021 or 2020. We own or retain legal responsibility for certain environmental conditions at 12 former MGP sites in Kansas. These sites contain contaminants generally associated with MGP sites and are subject to control or remediation under various environmental laws and regulations. A consent agreement with the KDHE governs all environmental investigation and remediation work at these sites. The terms of the consent agreement require us to investigate these sites and set remediation activities based upon the results of the investigations and risk analysis. Remediation typically involves the management of contaminated soils and may involve removal of structures and monitoring and/or remediation of groundwater. Regulatory closure has been achieved at five of the 12 sites, but these sites remain subject to potential future requirements that may result in additional costs. We have an AAO that allows Kansas Gas Service to defer and seek recovery of costs necessary for investigation and remediation at, and nearby, these 12 former MGP sites that are incurred after January 1, 2017, up to a cap of $15.0 million, net of any related insurance recoveries. Costs approved for recovery in a future rate proceeding would then be amortized over a 15-year period. The unamortized amounts will not be included in rate base or accumulate carrying charges. Following a determination that future investigation and remediation work approved by the KDHE is expected to exceed $15.0 million, net of any related insurance recoveries, Kansas Gas Service will be required to file an application with the KCC for approval to increase the $15.0 million cap. At December 31, 2022 and 2021, we have deferred $29.8 million and $29.9 million, respectively, for accrued investigation and remediation costs pursuant to our AAO. Kansas Gas Service expects to file an application as soon as practicable after the KDHE approves the plans we have submitted. We have completed or are addressing removal of the source of soil contamination at all 12 sites and continue to monitor groundwater at seven of the 12 sites according to plans approved by the KDHE. In 2019, we completed a project to remove a source of contamination and associated contaminated materials at the twelfth site where no active soil remediation had previously occurred. Remediation plans concerning various sites were submitted to the KDHE in 2021 and 2020 and the KDHE has provided comments that we are addressing. We are also working on a remediation plan for another of these sites for submission to the KDHE. We also own or retain legal responsibility for certain environmental conditions at a former MGP site in Texas. At the request of the TCEQ, we began investigating the level and extent of contamination associated with the site under their Texas Risk Reduction Program. A preliminary site investigation revealed that this site contains contaminants generally associated with MGP sites and is subject to control or remediation under various environmental laws and regulations. Impacts have been identified in the soil and groundwater at the site with limited impacts observed in surrounding areas. On April 14, 2022, we submitted a remediation work plan to address the areas impacted to the TCEQ. At December 31, 2022, estimated costs associated with expected remediation activities for this site are not material. Our expenditures for environmental evaluation, mitigation, remediation and compliance to date have not been significant in relation to our financial position, results of operations or cash flows, and our expenditures related to environmental matters had no material effects on earnings or cash flows during the years ended December 31, 2022, 2021 and 2020. The reserve for remediation of our MGP sites was $12.7 million and $22.8 million at December 31, 2022 and December 31, 2021, respectively. Environmental issues may exist with respect to MGP sites that are unknown to us. Accordingly, future costs are dependent on the final determination and regulatory approval of any remedial actions, the complexity of the site, level of remediation required, changing technology and governmental regulations, and to the extent not recovered by insurance or recoverable in rates from our customers, could be material to our financial condition, results of operations or cash flows. We are subject to environmental regulation by federal, state and local authorities. Due to the inherent uncertainties surrounding the development of federal and state environmental laws and regulations, we cannot determine with specificity the impact such laws and regulations may have on our existing and future facilities. With the trend toward stricter standards, greater regulation and more extensive permit requirements for the types of assets operated by us, our environmental expenditures could increase in the future, and such expenditures may not be fully recovered by insurance or recoverable in rates from our customers, and those costs may adversely affect our financial condition, results of operations and cash flows. Pipeline Safety - We are subject to regulation under federal pipeline safety statutes and any analogous state regulations. These include safety requirements for the design, construction, operation, and maintenance of pipelines, including transmission and distribution pipelines. At the federal level, we are regulated by PHMSA. PHMSA regulations require the following for certain pipelines: inspection and maintenance plans; integrity management programs, including the determination of pipeline integrity risks and periodic assessments on certain pipeline segments; an operator qualification program, which includes certain trainings; a public awareness program that provides certain information; and a control room management plan. As part of regulating pipeline safety, PHMSA promulgates various regulations. In April 2016, PHMSA published a NPRM, the Safety of Gas Transmission & Gathering Lines Rule, in the Federal Register to revise pipeline safety regulations applicable to the safety of onshore natural gas transmission and gathering pipelines. Proposals included changes to pipeline integrity management requirements and other safety-related requirements, which were split into three separate rulemakings. At December 31, 2022, all three final rules have been published and the potential capital and operating expenditures associated with compliance were not material or did not apply to us. Separately, as part of the Consolidated Appropriations Act, 2021, the PIPES Act of 2020 reauthorized PHMSA through 2023 and directed the agency to move forward with several regulatory actions, including the “Pipeline Safety: Class Location Change Requirements” and the “Pipeline Safety: Safety of Gas Transmission and Gathering Pipelines” proposed rulemakings. Congress has also instructed PHMSA to issue final regulations that will require operators of non-rural gas gathering lines and new and existing transmission and distribution pipeline facilities to conduct certain leak detection and repair programs and to require facility inspection and maintenance plans to align with those regulations. To the extent such rulemakings impose more stringent requirements on our facilities, we may be required to incur expenditures that may be material. Legal Proceedings - We are a party to various litigation matters and claims that have arisen in the normal course of our operations. While the results of litigation and claims cannot be predicted with certainty, we believe the reasonably possible losses from such matters, individually and in the aggregate, are not material. Additionally, we believe the probable outcome of such matters will not have a material adverse effect on our results of operations, financial position or cash flows. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Significant Accounting Policies [Line Items] | |
Basis of Accounting | Basis of Presentation - The consolidated financial statements include the accounts of our natural gas distribution business as set forth in “Organization and Nature of Operations” above. All significant balances and transactions between our subsidiaries have been eliminated. |
Use of Estimates | Use of Estimates - The preparation of our consolidated financial statements and related disclosures in accordance with GAAP requires us to make estimates and assumptions with respect to values or conditions that cannot be known with certainty that affect the reported amount of assets and liabilities, and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements. These estimates and assumptions also affect the reported amounts of revenue and expenses during the reporting period. Items that may be estimated include, but are not limited to, the economic useful life of assets, fair value of assets and liabilities, provisions for doubtful accounts receivable, unbilled revenues for natural gas delivered but for which meters have not been read, natural gas purchased but for which no invoice has been received, provision for income taxes, including any deferred income tax valuation allowances, the results of litigation and various other recorded or disclosed amounts. We evaluate these estimates on an ongoing basis using historical experience and other methods we consider reasonable based on the particular circumstances. Nevertheless, actual results may differ significantly from the estimates. Any effects on our financial position or results of operations from revisions to these estimates are recorded in the period when the facts that give rise to the revision become known. |
Revenue | Revenues - We recognize revenue from contracts with customers to depict the transfers of goods and services to customers at an amount that we expect to be entitled to receive in exchange for these goods and services. Our sources of revenue are disaggregated by natural gas sales, transportation revenues, and miscellaneous revenues, which are primarily one-time service fees, that meet the requirements of ASC 606. Certain revenues that do not meet the requirements of ASC 606 are classified as other revenues in our Notes to Consolidated Financial Statements in this Annual Report. Our natural gas sales to customers and transportation revenues represent revenues from contracts with customers through implied contracts established by our tariffs approved by regulatory authorities. Our customers receive the benefits of our performance when the commodity is delivered to the customer. The performance obligation is satisfied over time as the customer receives the natural gas. For deliveries of natural gas, we read meters and bill customers on a monthly cycle. We recognize revenues upon the delivery of natural gas or services rendered to customers. The billing cycles for customers do not necessarily coincide with the accounting periods used for financial reporting purposes. We accrue unbilled revenues for natural gas that has been delivered but not yet billed at the end of an accounting period. We use the invoice method practical expedient, where we recognize revenue for volumes delivered for which we have a right to invoice. Our estimate of accrued unbilled revenue is based on a percentage estimate of amounts unbilled each month, which is dependent upon a number of factors, some of which require management’s judgment. These factors include customer consumption patterns and the impact of weather on usage. The accrued unbilled natural gas sales revenue at December 31, 2022 and 2021 was $269.5 million and $183.2 million, respectively, and is included in accounts receivable on our consolidated balance sheets. Our miscellaneous revenues from contracts with customers represent implied contracts established by our tariff rates approved by the regulatory authorities and include miscellaneous utility services with the performance obligation satisfied at a point in time when services are rendered to the customer. Total other revenues consist of revenues associated with regulatory mechanisms that do not meet the requirements of ASC 606 as revenue from contracts with customers, but authorize us to accrue revenues earned based on tariffs approved by regulatory authorities. Other revenues - natural gas sales primarily relate to the WNA mechanism in Kansas. This mechanism adjusts our revenues earned for the variance between actual and normal HDDs. This mechanism can have either positive (warmer than normal) or negative (colder than normal) effects on revenues. We collect and remit other taxes on behalf of governmental authorities, and we record these amounts in accrued taxes other than income in our consolidated balance sheets. See Note 2 for additional discussion of revenues. |
Cost of Natural Gas [Policy Text Block] | Cost of Natural Gas - Cost of natural gas includes commodity purchases, fuel, storage, transportation and other gas purchase costs recovered through our cost of natural gas regulatory mechanisms and does not include an allocation of general operating costs or depreciation and amortization. These cost of natural gas regulatory mechanisms provide a method of recovering natural gas costs on an ongoing basis without a profit. See Note 10 for additional discussion of purchased gas cost recoveries. |
Cash and Cash Equivalents | Cash, Cash Equivalents and Restricted Cash and Cash Equivalents - Cash and cash equivalents consist of highly liquid investments, which are readily convertible into cash and have original maturities of three months or less. Restricted cash consists of funds that are contractually or legally restricted as to usage or withdrawal and have been presented separately from cash and cash equivalents on our consolidated balance sheets. Restricted cash and cash equivalents accounts were established for payment of Securitized Utility Tariff Bond issuance costs and payment of debt service on those bonds. |
Accounts Receivable | Accounts Receivable - Accounts receivable represent valid claims against nonaffiliated customers for natural gas sold or services rendered, net of an allowance for doubtful accounts. We assess the creditworthiness of our customers. Those customers who do not meet minimum standards may be required to provide security, including deposits and other forms of collateral, when appropriate and allowed by our tariffs. With approximately 2.3 million customers across three states, we are not exposed materially to a concentration of credit risk. We maintain an allowance for doubtful accounts based upon factors surrounding the credit risk of customers, historical trends, consideration of the current credit environment and other information. We are able to recover natural gas costs related to uncollectible accounts through purchased-gas cost adjustment mechanisms. At December 31, 2022 and 2021, our allowance for doubtful accounts was $16.7 million and $18.7 million, respectively. |
Inventories | Inventories - Natural gas in storage is accounted for on the basis of weighted-average cost. Materials and supplies inventories are stated at the lower of weighted-average cost or net realizable value. |
Lessee, Leases [Policy Text Block] | Leases - We determine if an arrangement is a lease at inception if the contract conveys the right to control the use and obtain substantially all the economic benefits from the use of an identified asset for a period of time in exchange for consideration. We identify a lease as a finance lease if the agreement includes any of the following criteria: transfer of ownership by the end of the lease term; an option to purchase the underlying asset that the lessee is reasonably certain to exercise; a lease term that represents 75 percent or more of the remaining economic life of the underlying asset; a present value of lease payments and any residual value guaranteed by the lessee that equals or exceeds 90 percent of the fair value of the underlying asset; or an underlying asset that is so specialized in nature that there is no expected alternative use to the lessor at the end of the lease term. A lease that does not meet any of these criteria is considered an operating lease. Lease right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Right-of-use assets and liabilities are recognized at the commencement date of a lease based on the present value of lease payments over the lease term. Our lease terms may include options to extend or terminate the lease. We include these extension or termination options in the determination of the lease term when it is reasonably certain that we will exercise that option. We have lease agreements with lease and non-lease components, which are accounted for separately. Additionally, for certain office equipment leases, we apply a portfolio approach to effectively account for the operating lease right-of-use assets and liabilities. We do not recognize leases having a term of less than one year in our consolidated balance sheets. For purposes of determining the present value of the lease payments, we use a lease’s implicit interest rate when readily determinable. As most of our leases do not provide an implicit interest rate, we use an incremental borrowing rate based on available information at the commencement of the lease. Lease cost for operating leases is recognized on a straight-line basis over the lease term. See Note 5 for additional information regarding our leases. |
Derivatives and Risk Management Activities | Derivatives and Risk Management Activities - We record all derivative instruments at fair value, with the exception of normal purchases and normal sales that are expected to result in physical delivery. The accounting for changes in the fair value of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and, if so, the reason for holding it, or if regulatory requirements impose a different accounting treatment. If certain conditions are met, we may elect to designate a derivative instrument as a hedge of exposure to changes in fair values or cash flows. We have not elected to designate any of our derivative instruments as hedges. The table below summarizes the various ways in which we account for our derivative instruments and the impact on our consolidated financial statements: Recognition and Measurement Accounting Treatment Balance Sheet Income Statement Normal purchases and - Fair value not recorded - Change in fair value not recognized in earnings Mark-to-market - Recorded at fair value - Change in fair value recognized in, and See Note 9 for additional information regarding our economic hedging activities using derivatives. |
Fair Value Measurement, Policy [Policy Text Block] | Fair Value Measurements - We define fair value as the price that would be received from the sale of an asset or the transfer of a liability in an orderly transaction between market participants at the measurement date. We use the market and income approaches to determine the fair value of our assets and liabilities and consider the markets in which the transactions are executed. We measure the fair value of a group of financial assets and liabilities consistent with how a market participant would price the net risk exposure at the measurement date. Fair Value Hierarchy - At each balance sheet date, we utilize a fair value hierarchy to classify fair value amounts recognized or disclosed in our consolidated financial statements based on the observability of inputs used to estimate such fair value. The levels of the hierarchy are described below: • Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities; • Level 2 - Significant observable pricing inputs other than quoted prices included within Level 1 that are, either directly or indirectly, observable as of the reporting date. Essentially, this represents inputs that are derived principally from or corroborated by observable market data; and • Level 3 - May include one or more unobservable inputs that are significant in establishing a fair value estimate. These unobservable inputs are developed based on the best information available and may include our own internal data. We recognize transfers into and out of the levels as of the end of each reporting period. Determining the appropriate classification of our fair value measurements within the fair value hierarchy requires management’s judgment regarding the degree to which market data is observable or corroborated by observable market data. We categorize derivatives for which fair value is determined using multiple inputs within a single level, based on the lowest level input that is significant to the fair value measurement in its entirety. See Note 9 for additional information regarding our fair value measurements. |
Property, Plant and Equipment | Property, Plant and Equipment - Our properties are stated at cost, which includes direct construction costs such as direct labor, materials, burden and AFUDC. Generally, the cost of our property retired or sold, plus removal costs, less salvage, is charged to accumulated depreciation. Gains and losses from sales or retirement of an entire operating unit or system of our properties are recognized in income. Maintenance and repairs are charged directly to expense. AFUDC represents the cost of borrowed funds used to finance construction activities. We capitalize interest costs during the construction or upgrade of qualifying assets. Capitalized interest is recorded as a reduction to interest expense. Our properties are depreciated using the straight-line method over their estimated useful lives. Generally, we apply composite depreciation rates to functional groups of property having similar economic circumstances. We periodically conduct depreciation studies to assess the economic lives of our assets. These depreciation studies are completed as a part of our regulatory proceedings, and the changes in economic lives, if applicable, are implemented prospectively when the new rates are approved by our regulators and become effective. Changes in the estimated economic lives of our property, plant and equipment could have a material effect on our financial position, results of operations or cash flows. Property, plant and equipment on our consolidated balance sheets includes construction work in process for capital projects that have not yet been placed in service and therefore are not being depreciated. Assets are transferred out of construction work in process when they are substantially complete and ready for their intended use. See Note 12 for additional information regarding our property, plant and equipment. |
Impairment of Goodwill and Long-Lived Assets | Impairment of Goodwill and Long-Lived Assets - We assess our goodwill for impairment at least annually as of July 1, unless events or a change in circumstances indicate an impairment may have occurred before that time. As part of our goodwill impairment test, we first assess qualitative factors (including macroeconomic conditions, industry and market considerations, cost factors and overall financial performance) to determine whether it is more likely than not that our fair value is less than the carrying amount of our net assets. If further testing is necessary or a quantitative test is elected to refresh our recurring qualitative assessment, we perform a quantitative impairment test for goodwill. Our impairment assessment is performed by comparing our fair value with our book value, including goodwill. If the fair value is less than the book value, an impairment is measured by the amount of our carrying value that exceeds fair value, not to exceed the carrying amount of our goodwill. To estimate fair value, we use two generally accepted valuation approaches, an income approach and a market approach, using assumptions consistent with a market participant’s perspective. Under the income approach, we use anticipated cash flows over a period of years plus a terminal value and discount these amounts to their present value using appropriate discount rates. Under the market approach, we apply acquisition multiples to forecasted cash flows. The acquisition multiples used are consistent with historical market transactions. The forecasted cash flows are based on average forecasted cash flows over a period of years. Our goodwill impairment analysis performed in 2022 and 2021 utilized a qualitative assessment and did not result in any impairment indicators, nor did our analysis reflect our reporting unit at risk. Subsequent to July 1, 2022, no event has occurred indicating that it is more likely than not that our fair value is less than the carrying value of our net assets. We assess our long-lived assets for impairment whenever events or changes in circumstances indicate that an asset’s carrying amount may not be recoverable. An impairment is indicated if the carrying amount of a long-lived asset exceeds the sum of the undiscounted future cash flows expected to result from the use and eventual disposition of the asset. If an impairment is indicated, we record an impairment loss equal to the difference between the carrying value and the fair value of the long-lived asset. We determined that there were no material asset impairments in 2022, 2021 or 2020. Securitized Intangible Asset - On November 18, 2022, KGSS-I acquired the Securitized Utility Tariff Property from Kansas Gas Service for $327.4 million. The Securitized Utility Tariff Property is classified as a securitized intangible asset on our consolidated balance sheets. This securitized intangible asset will be amortized over 10 years, the estimated period needed to collect the required amounts from Kansas Gas Service’s customers to service the Securitized Utility Tariff Bonds. The amortization expense related to the securitized intangible asset will be included in depreciation and amortization expense in our consolidated statements of income. For the year ended December 31, 2022, we recorded $3.5 million of amortization expense related to the securitized intangible asset. At the end of its life, this securitized intangible asset will have no residual value. See Note 4 for additional information about the Securitized Utility Tariff Bonds and Notes 10 and 11 for additional information about the securitization transaction. Finite-lived intangible assets are stated at cost, net of accumulated amortization, which is recorded on a straight-line or accelerated basis over the life of the asset. We review amortizable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. If such a review should indicate that the carrying amount of amortizable intangible assets is not recoverable, we reduce the carrying amount of such assets to fair value. |
Regulation | Regulation - We are subject to the rate regulation and accounting requirements of the OCC, KCC, RRC and various municipalities in Texas. We follow the accounting and reporting guidance for regulated operations, including evaluating regulatory decisions to determine appropriate revenue recognition, cost deferrals and recoverability for regulatory assets and refund requirements for regulatory liabilities. During the ratemaking process, regulatory authorities set the framework for what we can charge customers for our services and establish the manner that our costs are accounted for, including allowing us to defer recognition of certain costs and permitting recovery of the amounts through rates over time, as opposed to expensing such costs as incurred. Examples include weather normalization, unrecovered purchased-gas costs, extraordinary costs associated with Winter Storm Uri, pension and postemployment benefit costs and ad-valorem taxes. This allows us to stabilize rates over time rather than passing such costs on to the customer for immediate recovery. Actions by regulatory authorities could have an effect on the amount recovered from customers. Any difference in the amount recoverable and the amount deferred is recorded as income or expense at the time of the regulatory action. A write-off of regulatory assets and costs not recovered may be required if all or a portion of the regulated operations have rates that are no longer: • established by independent regulators; • designed to recover our costs of providing regulated services; and • set at levels that will recover our costs when considering the demand and competition for our services. Should recovery cease due to regulatory actions, certain of these assets may no longer meet the criteria for recognition and accordingly, a write-off of regulatory assets and stranded costs may be required. There were no write-offs of regulatory assets resulting from the failure to meet the criteria for capitalization during 2022, 2021 and 2020. See Note 10 for additional information regarding our regulatory assets and liabilities. |
Pension and Other Postretirement Plans | Pension and Other Postemployment Employee Benefits - We have defined benefit pension plans covering eligible employees. We also sponsor welfare plans that provide other postemployment medical and life insurance benefits to eligible employees who retire with at least five years of service. To calculate the costs and liabilities related to our plans, we utilize an outside actuarial consultant, which uses statistical and other factors to anticipate future events. These factors include assumptions about the discount rate, expected return on plan assets, rate of future compensation increases, age and mortality and employment periods. We use tables issued by the Society of Actuaries to estimate mortality rates. In determining the projected benefit obligations and costs, assumptions can change from period to period and may result in material changes in the cost and liabilities we recognize. |
Income Taxes | Income Taxes - Deferred income taxes are recorded for the difference between the financial statement and income tax basis of assets and liabilities and carryforward items, based on income tax laws and rates existing at the time the temporary differences are expected to reverse. The effect on deferred income taxes of a change in tax rates is deferred and amortized for operations regulated by the OCC, KCC, RRC and various municipalities in Texas, if, as a result of an action by a regulator, it is probable that the effect of the change in tax rates will be recovered from or returned to customers through future rates. We continue to amortize previously deferred investment tax credits for ratemaking purposes over the periods prescribed by our regulators. A valuation allowance for deferred income tax assets is recognized when it is more likely than not that some or all of the benefit from the deferred income tax asset will not be realized. To assess that likelihood, we use estimates and judgment regarding our future taxable income, as well as the jurisdiction in which such taxable income is generated, to determine whether a valuation allowance is required. Such evidence can include our current financial position, our results of operations, both actual and forecasted, the reversal of deferred income tax liabilities, as well as the current and forecasted business economics of our industry. We had no valuation allowance at December 31, 2022 and 2021. We utilize a more-likely-than-not recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position that is taken or expected to be taken in a tax return. We reflect penalties and interest as part of income tax expense as they become applicable for tax provisions that do not meet the more-likely-than-not recognition threshold and measurement attribute. There were no material uncertain tax positions at December 31, 2022 and 2021. Changes in tax laws or tax rates are recognized in the financial reporting period that includes the enactment date. See Note 15 for additional information regarding income taxes. |
Asset Retirement Obligations | Asset Retirement Obligations - Asset retirement obligations represent legal obligations associated with the retirement of long-lived assets that result from the acquisition, construction, development and/or normal use of the asset. Certain long-lived assets that comprise our natural gas distribution systems, primarily our pipeline assets, are subject to agreements or regulations that give rise to an asset retirement obligation for removal or other disposition costs associated with retiring the assets in place upon the discontinued use of the natural gas distribution system. We recognize the fair value of a liability for an asset retirement obligation in the period when it is incurred if a reasonable estimate of the fair value can be made. We are not able to estimate reasonably the fair value of the asset retirement obligations for portions of our assets because the settlement dates are indeterminable given our expected continued use of the assets with proper maintenance. We expect our natural gas distribution systems will continue in operation for the foreseeable future. Based on our proximity to significant natural gas reserves and infrastructure and the widespread use of natural gas for heating and cooking activities by residential and commercial customers in our service areas, we expect supply and demand to exist for the foreseeable future. In accordance with long-standing regulatory treatment, we collect through rates the estimated costs of removal on certain regulated properties through depreciation expense as a portion of the net salvage value component of our composite deprecation rates, with a corresponding credit to accumulated depreciation and amortization. These removal costs collected through our rates include costs attributable to legal and nonlegal removal obligations. These costs are addressed prospectively in depreciation rates, rather than as a regulatory liability, in each general rate order. For financial reporting purposes, if the removal costs collected have exceeded our removal costs incurred, we estimate a regulatory liability using current rates since the last general rate order in each of our jurisdictions. At December 31, 2022 and |
Contingencies | Contingencies - Our accounting for contingencies covers a variety of business activities, including contingencies for legal and environmental exposures. We accrue these contingencies when our assessments indicate that it is probable that a liability has been incurred or an asset will not be recovered and an amount can be estimated reasonably. We expense legal fees as incurred and base our legal liability estimates on currently available facts and our estimates of the ultimate outcome or resolution. Accruals for the estimated cost of environmental remediation obligations generally are recognized no later than the completion of a remediation feasibility study. Recoveries of environmental remediation costs from other parties are recorded as assets when their receipt is deemed probable. Actual results may differ from our estimates resulting in an impact, positive or negative, on earnings. See Note 17 for additional information regarding contingencies. |
Share-Based Payments | Share-Based Payments - We expense the fair value of share-based payments net of estimated forfeitures. We estimate forfeiture rates based on historical forfeitures under our share-based payment plans. |
Earnings Per Share | Earnings per share - Basic EPS is calculated by dividing net income by the daily weighted-average number of common shares outstanding during the periods presented. Also, this calculation includes fully vested stock awards that have not yet been issued as common stock. Diluted EPS includes the above, plus unvested stock awards granted under our compensation plans and equity forward sale agreements, but only to the extent these instruments dilute earnings per share. |
Segments | Segments - We operate in one reportable business segment: regulated public utilities that deliver natural gas primarily to residential, commercial and transportation customers. We define reportable business segments as components of an organization for which discrete financial information is available and operating results are evaluated on a regular basis by the chief operating decision maker (“CODM”) in order to assess performance and allocate resources. Our CODM is our Chief Executive Officer. Characteristics of our organization that were relied upon in making this determination include the similar nature of services we provide, the functional alignment of our organizational structure, and the reports that are regularly reviewed by the CODM for the purpose of assessing performance and allocating resources. Our management is functionally aligned and centralized, with performance evaluated based upon results of the entire distribution business. Capital allocation decisions are driven by asset integrity management, operating efficiency, growth opportunities and government-requested pipeline relocations, not geographic location or regulatory jurisdiction. In 2022, 2021 and 2020, we had no single external customer from which we received 10 percent or more of our gross revenues. |
Recently Issues Accounting Standards Updates | Recently Issued Accounting Standards Update - In November 2021, the FASB issued ASU 2021-10, “Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance,” which will require disclosure about government assistance in the notes to the financial statements. The amendment requires annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy, including information about the nature of the transactions and the related accounting policy used to account for the transactions, the line items on the balance sheet and income statement that are affected by the transactions and the significant terms and conditions of the transactions, including commitments and contingencies. The amendment became effective for us beginning January 1, 2022. As the guidance is related only to disclosures in the notes to the financial statements, we do not anticipate any impact on our financial position, results of operations or cash flows. See Note 10 for additional discussion regarding our securitization transaction with the Oklahoma government that is accounted for by applying a grant accounting model by analogy. In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting,” which provides relief from the accounting analysis and impacts that may otherwise be required for modifications to agreements (e.g., loans, debt securities, derivatives, borrowings) necessitated by reference rate reform. It also provides optional expedients to enable companies to continue to apply hedge accounting to certain hedging relationships impacted by reference rate reform. In the first quarter 2020, we adopted this new guidance effective for contracts modified between March 12, 2020 and December 31, 2022. In March 2022, we amended the ONE Gas Credit Agreement to change the defined benchmark rate to SOFR from LIBOR. Our adoption and subsequent amendment of the ONE Gas Credit Agreement did not result in a material impact to our consolidated financial statements. |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenues Disaggregated by Source [Table] | The following table sets forth our revenues disaggregated by source for the periods indicated: Year Ended December 31, 2022 2021 2020 (Thousands of dollars) Natural gas sales to customers $ 2,410,048 $ 1,652,566 $ 1,381,141 Transportation revenues 125,951 118,492 113,855 Securitization customer charges (Note 11) 5,769 — — Miscellaneous revenues 19,850 16,757 15,505 Total revenues from contracts with customers 2,561,618 1,787,815 1,510,501 Other revenues - natural gas sales related 3,403 9,650 8,299 Other revenues 12,984 11,132 11,468 Total other revenues 16,387 20,782 19,767 Total revenues $ 2,578,005 $ 1,808,597 $ 1,530,268 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Long-Term Debt, Unclassified [Abstract] | |
Schedule of Long-Term Debt Instruments | The table below presents a summary of our long-term debt outstanding for the periods indicated: Interest rate at December 31, 2022 December 31, 2022 December 31, 2021 ( Thousands of dollars ) Senior unsecured notes: Senior unsecured notes due March 2023 $ — $ 1,000,000 Senior unsecured floating rate notes due March 2023 — 400,000 Senior unsecured notes due February 2024 3.610% 300,000 300,000 Senior unsecured notes due March 2024 1.100% 473,000 700,000 Senior unsecured notes due May 2030 2.000% 300,000 300,000 Senior unsecured notes due September 2032 4.250% 300,000 — Senior unsecured notes due February 2044 4.658% 600,000 600,000 Senior unsecured notes due November 2048 4.500% 400,000 400,000 Total senior unsecured notes 2,373,000 3,700,000 KGSS-I Securitized Utility Tariff Bonds 5.486% 336,000 — Other 8.000% 1,250 1,261 Unamortized discounts on long-term debt (7,636) (5,454) Debt issuance costs (20,143) (12,418) Total long-term debt, net 2,682,471 3,683,389 Less: current maturities of securitized utility tariff bonds 20,716 — Less: current maturities of long-term debt 12 11 Noncurrent portion of long-term debt, net $ 2,661,743 $ 3,683,378 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Other Information Related to Operating Leases [Table Text Block] | Years Ended December 31, Other information related to operating leases 2022 2021 2020 (Millions of dollars) Weighted-average remaining lease term 5 years 6 years 7 years Weighted-average discount rate 4.04 % 2.78 % 2.81 % Supplemental cash flows information Lease payments $ (8.2) $ (8.0) $ (8.0) Right-of-use assets obtained in exchange for lease obligations $ 0.3 $ 0.4 $ 9.8 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | December 31, Future minimum lease payments under non-cancellable operating leases 2022 (Millions of dollars) 2023 $ 6.5 2024 4.7 2025 4.0 2026 3.2 2027 3.0 Thereafter 4.3 Total future minimum lease payments $ 25.7 Imputed interest (2.6) Total operating lease liability $ 23.1 Consolidated balance sheets as of December 31, 2022 Current operating lease liability $ 5.7 Long-term operating lease liability 17.4 Total operating lease liability $ 23.1 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table sets forth the balance in accumulated other comprehensive loss for the periods indicated: Accumulated Other Comprehensive Income (Loss) (Thousands of dollars) January 1, 2021 $ (7,777) Pension and other postemployment benefit plans obligations Other comprehensive income before reclassification, net of tax of $11 78 Amounts reclassified from accumulated other comprehensive income (loss), net of tax of $(390) 1,172 Other comprehensive income 1,250 December 31, 2021 (6,527) Pension and other postemployment benefit plans obligations Other comprehensive income before reclassification, net of tax of $(1,669) 5,701 Amounts reclassified from accumulated other comprehensive income (loss), net of tax of $(36) 122 Other comprehensive income 5,823 December 31, 2022 $ (704) |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | The following table sets forth the effect of reclassifications from accumulated other comprehensive loss on our consolidated statements of income for the periods indicated: Details about Accumulated Other Comprehensive Income (Loss) Components Affected Line Item in the Consolidated Statements of Income Years Ended December 31, 2022 2021 2020 ( Thousands of dollars ) Pension and other postemployment benefit plan obligations (a) Amortization of net loss $ 17,010 $ 45,896 $ 42,492 Amortization of unrecognized prior service cost (credit) 289 (279) (117) 17,299 45,617 42,375 Regulatory adjustments (b) (17,141) (44,055) (41,183) 158 1,562 1,192 Income before income taxes (36) (390) (298) Income tax expense Total reclassifications for the period $ 122 $ 1,172 $ 894 Net income (a) These components of accumulated other comprehensive loss are included in the computation of net periodic benefit cost. See Note 14 for additional information regarding our net periodic benefit cost. (b) Regulatory adjustments represent pension and other postemployment benefit costs expected to be recovered through rates and are deferred as part of our regulatory assets. See Note 10 for additional information regarding our regulatory assets and liabilities. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
EARNINGS PER SHARE OF COMMON STOCK, BASIC AND DILUTED [Line Items] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following tables set forth the computation of basic and diluted EPS from continuing operations for the periods indicated: Year Ended December 31, 2022 Income Shares Per Share ( Thousands, except per share amounts ) Basic EPS Calculation Net income available for common stock $ 221,742 54,207 $ 4.09 Diluted EPS Calculation Effect of dilutive securities — 131 Net income available for common stock and common stock equivalents $ 221,742 54,338 $ 4.08 Year Ended December 31, 2021 Income Shares Per Share ( Thousands, except per share amounts ) Basic EPS Calculation Net income available for common stock $ 206,434 53,575 $ 3.85 Diluted EPS Calculation Effect of dilutive securities — 99 Net income available for common stock and common stock equivalents $ 206,434 53,674 $ 3.85 Year Ended December 31, 2020 Income Shares Per Share ( Thousands, except per share amounts ) Basic EPS Calculation Net income available for common stock $ 196,412 53,133 $ 3.70 Diluted EPS Calculation Effect of dilutive securities — 237 Net income available for common stock and common stock equivalents $ 196,412 53,370 $ 3.68 |
REGULATORY ASSETS AND LIABILI_2
REGULATORY ASSETS AND LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SCHEDULE OF REGULATED ASSETS AND LIABILITIES [Line Items] | |
SCHEDULE OF REGULATED ASSETS AND LIABILITIES | The tables below present a summary of regulatory assets, net of amortization, and liabilities for the periods indicated: 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 other postemployment benefit costs See Note 14 — 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 14 (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. December 31, 2021 Remaining Recovery Period Current Noncurrent Total ( Thousands of dollars ) Winter weather event costs (a) $ 1,536,054 $ 428,023 $ 1,964,077 Under-recovered purchased-gas costs 1 year 31,863 — 31,863 Pension and other postemployment benefit costs See Note 14 11,507 260,559 272,066 Reacquired debt costs 6 years 812 4,070 4,882 MGP remediation costs 15 years 98 29,841 29,939 Ad-valorem tax 1 year 8,561 — 8,561 WNA 1 year 10,044 — 10,044 Customer credit deferrals 1 year 10,685 — 10,685 Other 1 to 18 years 2,052 2,369 4,421 Total regulatory assets, net of amortization 1,611,676 724,862 2,336,538 Income tax rate changes (a) — (552,928) (552,928) Over-recovered purchased-gas costs 1 year (8,090) — (8,090) Total regulatory liabilities (8,090) (552,928) (561,018) Net regulatory assets and liabilities $ 1,603,586 $ 171,934 $ 1,775,520 |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) - Kansas Gas Service Securitization I LLC | 12 Months Ended |
Dec. 31, 2022 | |
Variable Interest Entity [Line Items] | |
Schedule of Variable Interest Entities | The following table summarizes the impact of KGSS-I on our consolidated balance sheets: December 31, 2022 (Thousands of dollars) Restricted cash and cash equivalents $ 8,446 Accounts receivable 4,862 Securitized intangible asset, net 323,838 Current maturities of securitized utility tariff bonds 20,716 Accounts payable 3,204 Accrued interest 2,202 Securitized utility tariff bonds, excluding current maturities, net of issuance costs 309,343 Equity $ 1,681 The following table summarizes the impact of KGSS-I on our consolidated statements of income: Year ended December 31, 2022 (Thousands of dollars) Operating revenues $ 5,769 Operating expense (52) Amortization expense (3,521) Interest income 6 Interest expense (2,202) Income before income taxes $ — |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The following table summarizes the amortization expense related to the securitized intangible asset expected to be recognized in our consolidated statements of income: For the year ending: (Thousands of dollars) 2023 $ 27,851 2024 $ 27,843 2025 $ 29,391 2026 $ 31,025 2027 $ 32,751 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Regulated [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment by Property Type | The following table sets forth our property, plant and equipment by property type, for the periods indicated: December 31, December 31, 2022 2021 ( Thousands of dollars ) Natural gas distribution pipelines and related equipment $ 6,240,236 $ 5,836,066 Natural gas transmission pipelines and related equipment 661,379 624,528 General plant and other 782,870 712,659 Construction work in process 150,072 101,015 Property, plant and equipment 7,834,557 7,274,268 Accumulated depreciation and amortization (2,205,717) (2,083,433) Net property, plant and equipment $ 5,628,840 $ 5,190,835 |
SHARE-BASED PAYMENTS (Tables)
SHARE-BASED PAYMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-based Payments [Line Items] | |
Schedule of Share-based Compensation, Restricted Stock Units Activity | The following tables set forth activity and various statistics for restricted stock unit awards outstanding under the respective plans for the period indicated: Number of Weighted- Nonvested at December 31, 2021 94,274 $ 82.16 Granted 56,420 $ 76.96 Vested (28,830) $ 78.91 Forfeited (5,231) $ 84.06 Nonvested at December 31, 2022 116,633 $ 79.32 2022 2021 2020 Weighted-average grant date fair value (per share) $ 76.96 $ 72.69 $ 96.21 Fair value of shares granted (thousands of dollars) $ 4,342 $ 3,660 $ 3,005 |
Schedule of Nonvested Performance-based Units Activity | The following tables set forth activity and various statistics related to our performance stock unit awards and the assumptions used by us in the valuations of the 2022, 2021 and 2020 grants at the grant date: Number of Weighted- Nonvested at December 31, 2021 198,599 $ 90.13 Granted 87,266 $ 95.80 Vested (63,389) $ 89.86 Forfeited (7,939) $ 91.41 Nonvested at December 31, 2022 214,537 $ 92.47 2022 2021 2020 Volatility (a) 34.00% 32.70% 16.40% Dividend yield 3.22% 3.19% 2.25% Risk-free interest rate (b) 1.65% 0.20% 1.40% (a) - Volatility based on historical volatility over three years using daily stock price observations of our peer utilities. (b) - Using 3-year treasury rate. 2022 2021 2020 Weighted-average grant date fair value (per share) $ 95.80 $ 82.51 $ 102.77 Fair value of shares granted (thousands of dollars) $ 8,360 $ 8,860 $ 6,502 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Defined Benefit Plans and Other Postemployment Benefit Plans Table Text Block [Line Items] | |
Defined Benefit Plan, Assumptions [Table Text Block] | Actuarial Assumptions - The following table sets forth the weighted-average assumptions used to determine benefit obligations for pension and postemployment benefits for the periods indicated: December 31, 2022 2021 Discount rate - pension plans 5.60% 3.05% Discount rate - other postemployment plans 5.70% 3.00% Compensation increase rate 3.60% - 5.00% 3.10% - 5.00% The following table sets forth the weighted-average assumptions used by us to determine the periodic benefit costs for pension and postemployment benefits for the periods indicated: Years Ended December 31, 2022 2021 2020 Discount rate - pension plans 3.05%/4.55% (a) 2.80% 3.50% Discount rate - other postemployment plans 3.00% 2.70% 3.40% Expected long-term return on plan assets - pension plans 6.40% 7.15% 7.20% Expected long-term return on plan assets - other postemployment plans 5.85% 7.50% 7.65% Compensation increase rate 3.10% - 5.00% 3.10% - 3.90% 3.10% - 4.00% |
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | The following table sets forth our defined benefit pension and other postemployment benefit plans, benefit obligations and fair value of plan assets for the periods indicated: Pension Benefits Other Postemployment Benefits December 31, December 31, 2022 2021 2022 2021 Changes in Benefit Obligation (Thousands of dollars) Benefit obligation, beginning of period $ 1,049,990 $ 1,077,641 $ 222,806 $ 239,530 Service cost 10,369 13,811 1,274 1,587 Interest cost 36,150 29,458 6,448 6,251 Plan participants’ contributions — — 3,035 3,226 Actuarial loss (gain) (259,261) (19,587) (48,609) (8,894) Benefits paid (55,326) (51,333) (16,612) (18,894) Plan amendments 2,711 — — — Benefit obligation, end of period 784,633 1,049,990 168,342 222,806 Change in Plan Assets Fair value of plan assets, beginning of period 1,013,244 987,583 231,994 230,895 Actual return (loss) on plan assets (190,484) 75,999 (38,432) 14,786 Employer contributions 1,527 995 1,892 1,981 Plan participants’ contributions — — 3,035 3,226 Benefits paid (55,326) (51,333) (16,612) (18,894) Fair value of assets, end of period 768,961 1,013,244 181,877 231,994 Benefit Asset (Obligation), net at December 31 $ (15,672) $ (36,746) 13,535 $ 9,188 Other noncurrent assets 5,267 — 13,535 9,188 Current liabilities (1,352) (1,521) — — Noncurrent liabilities (19,587) (35,225) — — Benefit Asset (Obligation), net at December 31 $ (15,672) $ (36,746) $ 13,535 $ 9,188 |
Schedule of Net Benefit Costs [Table Text Block] | Components of Net Periodic Benefit Cost - The following tables set forth the components of net periodic benefit cost, prior to regulatory deferrals, for our defined benefit pension and other postemployment benefit plans for the period indicated: Pension Benefits Year Ended December 31, 2022 2021 2020 (Thousands of dollars) Components of net periodic benefit cost Service cost $ 10,369 $ 13,811 $ 12,869 Interest cost (a) 36,150 29,458 34,179 Expected return on assets (a) (58,528) (62,382) (61,119) Amortization of unrecognized prior service cost (a) 248 — — Amortization of net loss (a) 16,793 45,523 42,319 Net periodic benefit cost $ 5,032 $ 26,410 $ 28,248 (a) These amounts, net of any amounts capitalized as a regulatory asset since adoption of ASU 2017-07 on January 1, 2018, have been recognized as other income (expense), net in the consolidated statements of income. See Note 16 for additional detail of our other income (expense), net. Other Postemployment Benefits Year Ended December 31, 2022 2021 2020 (Thousands of dollars) Components of net periodic benefit cost Service cost $ 1,274 $ 1,587 $ 1,692 Interest cost (a) 6,448 6,251 7,557 Expected return on assets (a) (13,181) (16,807) (15,469) Amortization of unrecognized prior service cost (credit) (a) 41 (279) (117) Amortization of net loss (a) 217 373 173 Net periodic benefit cost (credit) $ (5,201) $ (8,875) $ (6,164) |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block] | Other Comprehensive Income (Loss) - The following table sets forth the amounts recognized in other comprehensive income (loss), net of regulatory deferrals, related to our defined benefit pension benefits for the period indicated: Pension Benefits Year Ended December 31, 2022 2021 2020 (Thousands of dollars) Net gain (loss) arising during the period $ 7,369 $ 67 $ (2,519) Amortization of loss 159 1,562 1,192 Deferred income taxes (1,705) (379) 289 Total recognized in other comprehensive income (loss) $ 5,823 $ 1,250 $ (1,038) |
Schedule of Net Periodic Benefit Cost Not yet Recognized [Table Text Block] | The tables below set forth the amounts in accumulated other comprehensive loss that had not yet been recognized as components of net periodic benefit expense for the periods indicated: Pension Benefits December 31, 2022 2021 (Thousands of dollars) Prior service cost $ (2,463) $ — Accumulated loss (245,290) (272,332) Accumulated other comprehensive loss (247,753) (272,332) Regulatory asset for regulated entities 246,975 264,027 Accumulated other comprehensive loss (778) (8,305) Deferred income taxes 74 1,778 Accumulated other comprehensive loss, $ (704) $ (6,527) Other Postemployment Benefits December 31, 2022 2021 (Thousands of dollars) Prior service cost $ (153) $ (194) Accumulated loss (8,557) (5,887) Accumulated other comprehensive loss (8,710) (6,081) Regulatory asset for regulated entities 8,710 6,081 Accumulated other comprehensive loss $ — $ — |
Schedule of Health Care Cost Trend Rates [Table Text Block] | Health Care Cost Trend Rates - The following table sets forth the assumed health care cost-trend rates for the periods indicated: 2022 2021 Health care cost-trend rate assumed for next year 6.50% 6.00% Rate to which the cost-trend rate is assumed to decline 4.50% 4.50% Year that the rate reaches the ultimate trend rate 2030 2028 |
Schedule of Allocation of Plan Assets [Table Text Block] | Plan Assets - Our investment strategy is to invest plan assets in accordance with sound investment practices that emphasize long-term fundamentals. The goal of this strategy is to maximize investment returns while managing risk in order to meet the plan’s current and projected financial obligations. To achieve this strategy, we have established a liability-driven investment strategy to change the allocations as the funded status of the defined benefit pension plan increases. The plan’s investments include a diverse blend of various domestic and international equities, investment-grade debt securities which mirror the cash flows of our liability, insurance contracts and alternative investments. The current target allocation for the assets of our defined benefit pension plan is as follows: Investment-grade bonds 60.0 % U.S. large-cap equities 14.0 % Alternative investments 10.0 % Developed foreign large-cap equities 7.0 % Mid-cap equities 5.0 % Emerging markets equities 1.0 % Small-cap equities 3.0 % Total 100 % As part of our risk management for the plans, minimums and maximums have been set for each of the asset classes listed above. All investment managers for the plan are subject to certain restrictions on the securities they purchase and, with the exception of indexing purposes, are prohibited from owning our stock. The current target allocation for the assets of our other postemployment benefits plan is 90 percent fixed income securities and 10 percent equity securities. The following tables set forth our pension and other postemployment benefits plan assets by fair value category as of the measurement date: Pension Benefits December 31, 2022 Asset Category Level 1 Level 2 Level 3 Total (Thousands of dollars) Investments: Equity securities (a) $ 150,027 $ — $ — $ 150,027 Government obligations — 160,799 — 160,799 Corporate obligations (b) — 329,973 — 329,973 Cash and money market funds (c) 4,466 22,185 — 26,651 Insurance contracts and group annuity contracts — — 14,480 14,480 Other investments (d) — — 87,031 87,031 Total assets $ 154,493 $ 512,957 $ 101,511 $ 768,961 (a) - This category represents securities of the various market sectors from diverse industries. (b) - This category represents bonds from diverse industries. (c) - This category primarily represents money market funds. (d) - This category represents alternative investments such as hedge funds and other financial instruments. Pension Benefits December 31, 2021 Asset Category Level 1 Level 2 Level 3 Total (Thousands of dollars) Investments: Equity securities (a) $ 223,871 $ — $ — $ 223,871 Government obligations — 205,741 — 205,741 Corporate obligations (b) — 440,445 — 440,445 Cash and money market funds (c) 3,864 30,546 — 34,410 Insurance contracts and group annuity contracts — — 17,301 17,301 Other investments (d) — 20 91,456 91,476 Total assets $ 227,735 $ 676,752 $ 108,757 $ 1,013,244 (a) - This category represents securities of the various market sectors from diverse industries. (b) - This category represents bonds from diverse industries. (c) - This category primarily represents money market funds. (d) - This category represents alternative investments such as hedge funds and other financial instruments. Other Postemployment Benefits December 31, 2022 Asset Category Level 1 Level 2 Level 3 Total (Thousands of dollars) Investments: Equity securities (a) $ 5,983 $ — $ — $ 5,983 Government obligations — 43,291 — 43,291 Corporate obligations (b) — 38,095 — 38,095 Cash and money market funds (c) 750 7,621 — 8,371 Insurance contracts and group annuity contracts (d) — 86,137 — 86,137 Total assets $ 6,733 $ 175,144 $ — $ 181,877 (a) - This category represents securities of the various market sectors from diverse industries. (b) - This category represents bonds from diverse industries. (c) - This category primarily represents money market funds. (d) - This category includes equity securities and bonds held in a captive insurance product. Other Postemployment Benefits December 31, 2021 Asset Category Level 1 Level 2 Level 3 Total (Thousands of dollars) Investments: Equity securities (a) $ 25,577 $ — $ — $ 25,577 Government obligations — 41,366 — 41,366 Corporate obligations (b) — 41,601 — 41,601 Cash and money market funds (c) 542 12,990 — 13,532 Insurance contracts and group annuity contracts (d) — 109,918 — 109,918 Total assets $ 26,119 $ 205,875 $ — $ 231,994 (a) - This category represents securities of the various market sectors from diverse industries. (b) - This category represents bonds from diverse industries. (c) - This category primarily represents money market funds. (d) - This category includes equity securities and bonds held in a captive insurance product. |
Schedule of Employee Pension Plans Investments at Fair Value | The following tables set forth additional information regarding commitments and redemption limitations of these other investments at the periods indicated: December 31, 2022 Fair Value Unfunded Commitments Redemption Frequency Redemption Notice Period (in thousands) (in days) Grosvenor Registered Multi Limited Partnership $ 40,160 $ — quarterly 65 K2 Institutional Investors II Limited Partnership $ 46,871 $ — quarterly 91 December 31, 2021 Fair Value Unfunded Commitments Redemption Frequency Redemption Notice Period (in thousands) (in days) Grosvenor Registered Multi Limited Partnership $ 44,818 $ — quarterly 65 K2 Institutional Investors II Limited Partnership $ 46,638 $ — quarterly 91 |
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets [Table Text Block] | The following table sets forth the reconciliation of Level 3 fair value measurements of our pension plans for the periods indicated: Pension Benefits Insurance Other Total (Thousands of dollars) January 1, 2021 $ 24,603 $ 87,634 $ 112,237 Unrealized gains — 1,625 1,625 Unrealized losses (3,368) — (3,368) Purchases — 2,197 2,197 Settlements (3,934) — (3,934) December 31, 2021 $ 17,301 $ 91,456 $ 108,757 Unrealized gains 1,467 — 1,467 Unrealized losses — (7,458) (7,458) Purchases 182 3,033 3,215 Settlements (4,470) — (4,470) December 31, 2022 $ 14,480 $ 87,031 $ 101,511 |
Schedule of Expected Benefit Payments [Table Text Block] | The following table sets forth the pension benefits and other postemployment benefits payments expected to be paid in 2023-2032: Pension Other Postemployment Benefits to be paid in: (Thousands of dollars) 2023 $ 53,970 $ 15,502 2024 $ 54,807 $ 15,150 2025 $ 55,446 $ 14,878 2026 $ 56,241 $ 14,488 2027 $ 56,546 $ 14,199 2028 through 2032 $ 287,424 $ 65,748 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income tax [Line Items] | |
Reconciliation of Income Tax Provision | The following table sets forth our provision for income taxes for the periods indicated: Years Ended December 31, 2022 2021 2020 ( Thousands of dollars ) Current income tax provision (benefit) Federal $ 61,745 $ (1,568) $ 20,129 State 6,815 (1,565) 2,965 Total current income tax provision (benefit) 68,560 (3,133) 23,094 Deferred income tax provision (benefit) Federal (22,234) 37,810 10,757 State 200 5,639 7,728 Total deferred income tax provision (benefit) (22,034) 43,449 18,485 Total provision for income taxes $ 46,526 $ 40,316 $ 41,579 |
Schedule of Effective Income Tax Rate Reconciliation | The following table is a reconciliation of our income tax provision for the periods indicated: Years Ended December 31, 2022 2021 2020 ( Thousands of dollars ) Income before income taxes $ 268,268 $ 246,750 $ 237,991 Federal statutory income tax rate 21 % 21 % 21 % Provision for federal income taxes 56,335 51,817 49,978 State income taxes, net of federal tax benefit 7,016 4,074 10,693 Amortization of EDIT regulatory liability (17,986) (17,289) (17,031) Tax (expense) benefit for employee share-based compensation 350 (469) (1,489) Other, net 811 2,183 (572) Total provision for income taxes $ 46,526 $ 40,316 $ 41,579 |
Schedule of Deferred Tax Assets and Liabilities | The following table sets forth the tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and liabilities for the periods indicated: December 31, 2022 2021 ( Thousands of dollars ) Deferred tax assets Employee benefits and other accrued liabilities $ 4,256 $ 11,126 Regulatory adjustments for enacted tax rate changes 114,551 120,051 Net operating loss 161,320 424,861 Lease obligation basis 9,158 6,906 Purchased-gas cost adjustment 3,384 — Other 3,014 12,597 Total deferred tax assets 295,683 575,541 Deferred tax liabilities Excess of tax over book depreciation 792,570 734,051 Winter weather event costs 121,347 421,070 Purchased-gas cost adjustment — 37,433 Other regulatory assets and liabilities, net 71,180 71,541 Right-of-use asset basis 9,042 6,730 Total deferred tax liabilities 994,139 1,270,825 Net deferred tax liabilities $ 698,456 $ 695,284 |
Other Income and Expenses (Tabl
Other Income and Expenses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Nonoperating Income (Expense) | The following table sets forth the components of other income and other expense for the periods indicated: Years Ended December 31, 2022 2021 2020 ( Thousands of dollars ) Net periodic benefit (cost) other than service cost $ 3,766 $ (3,930) $ (5,071) Earnings (losses) on investments associated with nonqualified employee benefit plans (7,197) 3,699 4,616 Other, net (752) (2,976) (2,565) Total other expense, net $ (4,183) $ (3,207) $ (3,020) |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) number in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Significant Accounting Policies [Line Items] | |||
Number of natural gas distribution services customers | 2.3 | ||
Unbilled Receivables, Current | $ 269,500,000 | $ 183,200,000 | |
Accounts Receivable, Allowance for Credit Loss, Current | 16,700,000 | 18,700,000 | |
Asset Impairment Charges | 0 | 0 | $ 0 |
Finite-Lived Intangible Assets, Gross | $ 327,400,000 | ||
Finite-Lived Intangible Asset, Useful Life | 10 years | ||
Amortization of Intangible Assets | $ 3,500,000 | ||
Deferred Tax Assets, Valuation Allowance | 0 | 0 | |
Liability for Uncertainty in Income Taxes, Current | $ 0 | $ 0 | |
Segment Reporting, Disclosure of Major Customers | no | no | no |
REVENUE (Details)
REVENUE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Regulated Operating Revenue, Gas | $ 2,561,618 | $ 1,787,815 | $ 1,510,501 |
Regulated Operating Revenue, Other | 16,387 | 20,782 | 19,767 |
Regulated Operating Revenue | 2,578,005 | 1,808,597 | 1,530,268 |
Natural gas sales to customers [Member] | |||
Regulated Operating Revenue, Gas | 2,410,048 | 1,652,566 | 1,381,141 |
Transportation revenues [Member] | |||
Regulated Operating Revenue, Gas | 125,951 | 118,492 | 113,855 |
Securitization Customer Charges | |||
Regulated Operating Revenue, Gas | 5,769 | 0 | 0 |
Miscellaneous revenues [Member] | |||
Regulated Operating Revenue, Gas | 19,850 | 16,757 | 15,505 |
Other revenues - natural gas sales related [Member] | |||
Other revenues - natural gas sales related | 3,403 | 9,650 | 8,299 |
Other revenues [Member] | |||
Regulated Operating Revenue, Other | $ 12,984 | $ 11,132 | $ 11,468 |
CREDIT FACILITY AND SHORT-TER_2
CREDIT FACILITY AND SHORT-TERM NOTES PAYABLE (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000,000 | |
Line of Credit Facility Sublimit | 20,000 | |
Swingline subfacility | 60,000 | |
Line of Credit Facility Option to Increase Borrowing Capacity | $ 500,000 | |
Approved Debt to Capital Ratio through December 31, 2021 | 0.70 | |
Ratio of Indebtedness to Net Capital | 0.56 | |
Letters of Credit Outstanding, Amount | $ 1,200 | |
Short-term Debt | 0 | |
Line of Credit Facility, Remaining Borrowing Capacity | 998,800 | |
Commercial paper maximum borrowing capacity | 1,000,000 | |
Commercial Paper | $ 552,000 | $ 494,000 |
Short-term Debt, Weighted Average Interest Rate, over Time | 4.75% | 0.38% |
Commercial Paper, Maximum Maturity Term | 270 days |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Nov. 18, 2022 | Aug. 25, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Aug. 08, 2022 | |
Debt Instrument [Line Items] | |||||
Debt Instrument, Covenant Compliance, Default Provision, Indebtnedness Threshold | $ 100,000 | ||||
Debt Instrument, Covenant Compliance, Default Provision, Debt Holders | 25 | ||||
Debt Instrument, Redemption Price, Percentage | 100% | ||||
Debt Instrument, Covenant Description | The indenture governing our Senior Notes includes an event of default upon the acceleration of other indebtedness of $100 million or more. Such events of default would entitle the trustee or the holders of 25 percent in the aggregate principal amount of the outstanding Senior Notes to declare those senior notes immediately due and payable in full. | ||||
Debt Instrument, Call Feature | We may redeem our Senior Notes at par, plus accrued and unpaid interest to the redemption date, starting one month, three months, and six months, respectively, before their maturity dates. Prior to these dates, we may redeem these Senior Notes, in whole or in part, at a redemption price equal to the principal amount, plus accrued and unpaid interest and a make-whole premium. The redemption price will never be less than 100 percent of the principal amount of the respective note plus accrued and unpaid interest to the redemption date. Our Senior Notes are senior unsecured obligations, ranking equally in right of payment with all of our existing and future unsecured senior indebtedness. | ||||
Debt Instrument, Unamortized Discount | $ (7,636) | $ (5,454) | |||
Debt Issuance Costs, Net | (20,143) | (12,418) | |||
Long-Term Debt and Lease Obligation, Including Current Maturities | 2,682,471 | 3,683,389 | |||
Long-Term Debt, Current Maturities | 20,716 | 0 | |||
Other Long-Term Debt, Current | 12 | 11 | |||
Long-term Debt, Excluding Current Maturities | 2,661,743 | $ 3,683,378 | |||
0.85% Senior Unsecured Notes Due 2023 | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 0.85% | ||||
Long-term Debt, Gross | 0 | $ 1,000,000 | |||
Debt Instrument, Face Amount | 1,000,000 | ||||
Extinguishment of Debt, Amount | $ 250,000 | $ 750,000 | |||
Floating Rate Senior Unsecured Notes Due 2023 | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt, Gross | 0 | 400,000 | |||
Debt Instrument, Face Amount | 800,000 | ||||
Extinguishment of Debt, Amount | $ 400,000 | 400,000 | |||
3.61% Senior Unsecured Notes Due 2023 | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 3.61% | ||||
Long-term Debt, Gross | $ 300,000 | $ 300,000 | |||
1.10% Senior Unsecured Notes Due 2024 | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 1.10% | 1.10% | |||
Long-term Debt, Gross | $ 473,000 | $ 700,000 | |||
Debt Instrument, Face Amount | 700,000 | ||||
Extinguishment of Debt, Amount | $ 77,000 | $ 150,000 | |||
4.25% Senior Unsecured Notes Due 2032 | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 4.25% | 4.25% | |||
Long-term Debt, Gross | $ 300,000 | 0 | |||
Debt Instrument, Face Amount | $ 300,000 | ||||
2.00% Senior Unsecured Notes Due 2030 | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 2% | ||||
Long-term Debt, Gross | $ 300,000 | 300,000 | |||
4.658%Senior Unsecured Notes Due 2044 | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 4.658% | ||||
Long-term Debt, Gross | $ 600,000 | 600,000 | |||
4.50%Senior Unsecured Notes Due 2048 | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | ||||
Long-term Debt, Gross | $ 400,000 | 400,000 | |||
Total Senior Unsecured Notes | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt, Gross | $ 2,373,000 | 3,700,000 | |||
5.486% KGSS-I Securitized Utility Tariff Bonds Due 2032 | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 5.486% | 5.486% | |||
Long-term Debt, Gross | $ 336,000 | 0 | |||
Long-Term Debt, Current Maturities | $ 20,716 | 0 | |||
Debt Instrument, Face Amount | $ 336,000 | ||||
Long-Term Debt, Term | 10 years | ||||
Weighted Average Life of Securitized Bonds | 5 years 6 months | ||||
8.00% Other Long Term Debt | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 8% | ||||
Long-term Debt, Gross | $ 1,250 | $ 1,261 |
LEASES (Details)
LEASES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Option to Extend | 10 years | ||
Operating Lease, Right-of-Use Asset | $ 23.3 | $ 30.9 | |
Operating Lease, Expense | 7.8 | 8.2 | $ 8.4 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 0.3 | $ 0.4 | $ 9.8 |
Operating Lease, Weighted Average Remaining Lease Term | 5 years | 6 years | 7 years |
Operating Lease, Weighted Average Discount Rate, Percent | 4.04% | 2.78% | 2.81% |
Operating Lease, Payments | $ (8.2) | $ (8) | $ (8) |
Lessee, Operating Lease, Liability, Payments, Due Next Twelve Months | 6.5 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Two | 4.7 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Three | 4 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Four | 3.2 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Five | 3 | ||
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 4.3 | ||
Lessee, Operating Lease, Liability, Payments, Due | 25.7 | ||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (2.6) | ||
Operating Lease, Liability | 23.1 | ||
Operating Lease, Liability, Current | 5.7 | ||
Operating Lease, Liability, Noncurrent | 17.4 | ||
Decrease of Right of Use due to reassessment of lease | 1.3 | ||
Decrease of Operating Lease liability due to reassessment of lease | $ 1.3 | ||
Minimum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Term of Contract | 1 year | ||
Maximum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Term of Contract | 7 years |
EQUITY (Details)
EQUITY (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Preferred Stock, Shares Authorized | 50,000,000 | 50,000,000 | ||||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | ||||
Common stock authorized and available for issuance | 194,700,000 | 194,700,000 | ||||
At-the-Market Equity Program, Aggregate Offering Price Limit | $ 250,000,000 | |||||
At the Market Equity Program Shares Issued | 403,792 | $ 281,124 | ||||
At-the-Market Equity Program, Gross Proceeds | 35,000,000 | 21,400,000 | ||||
At-the-Market Equity Program, Proceeds Net of Issuance Costs | $ 34,700,000 | $ 21,100,000 | ||||
Dividends declared per share of stock | $ 0.62 | $ 0.58 | $ 2.48 | $ 2.32 | $ 2.16 | |
Common Stock, Dividends, Per Share, Declared | $ 2.48 | $ 2.32 | $ 2.16 | |||
Issuance of common stock | $ 133,711,000 | $ 26,662,000 | $ 19,383,000 | |||
At-The-Market Program | ||||||
Equity Available for Issuance | $ 63,100,000 | $ 63,100,000 | ||||
Forward Contract Indexed to Issuer's Equity, Shares | 1,451,474 | |||||
Common stock issued, shares | 1,162,071 | |||||
Issuance of common stock | $ 93,800,000 | |||||
Forward Contract Indexed to Equity, Settlement, Number of Shares | 289,403 | 289,403 | ||||
Forward Contract Indexed to Equity, Settlement, Cash, Amount | $ 21,700,000 | $ 21,700,000 | ||||
Dividend Declared [Member] | ||||||
Common Stock, Dividends, Per Share, Declared | $ 0.65 | |||||
Common Stock, Dividends, Declared, Annualized Basis | $ 2.60 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), beginning balance | $ (6,527) | $ (7,777) | |
Pension and other postretirement benefit plans obligations [Abstract] | |||
Other comprehensive income (loss), before reclassification, net of tax | 5,701 | 78 | |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 1,172 | ||
Other comprehensive income (loss), net of tax | 5,823 | 1,250 | $ (1,038) |
Accumulated Other Comprehensive Income (Loss), ending balance | (704) | (6,527) | (7,777) |
Pension and other postretirement benefit plans obligations [Abstract] | |||
Other comprehensive income (loss) reclassification adjustment, before tax and regulatory adjustments | 17,299 | 45,617 | 42,375 |
Other comprehensive income (loss) reclassification - regulatory adjustments | (17,141) | (44,055) | (41,183) |
Other comprehensive income (loss) reclassification adjustment, before tax | 158 | 1,562 | 1,192 |
Other comprehensive income (loss) reclassification adjustment, Tax | (36) | (390) | (298) |
Other comprehensive income (loss) reclassification adjustment, net of tax | 122 | 1,172 | 894 |
Other Comprehensive Income (Loss) before Reclassifications, Tax | (1,669) | 11 | |
Reclassification from AOCI, Current Period, Tax | 36 | 390 | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, before Tax | 289 | (279) | (117) |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, before Tax | $ 17,010 | $ 45,896 | $ 42,492 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
EARNINGS PER SHARE OF COMMON STOCK, BASIC AND DILUTED [Line Items] | |||
Net income | $ 221,742 | $ 206,434 | $ 196,412 |
Weighted Average Number of Shares Outstanding, Basic | 54,207 | 53,575 | 53,133 |
Earnings Per Share, Basic | $ 4.09 | $ 3.85 | $ 3.70 |
Weighted Average Number Diluted Shares Outstanding Adjustment | 131 | 99 | 237 |
Net Income (Loss) Available to Common Stockholders, Diluted | $ 221,742 | $ 206,434 | $ 196,412 |
Weighted Average Number of Shares Outstanding, Diluted | 54,338 | 53,674 | 53,370 |
Earnings Per Share, Diluted | $ 4.08 | $ 3.85 | $ 3.68 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Details) | 12 Months Ended | |
Dec. 31, 2022 USD ($) Bcf | Dec. 31, 2021 USD ($) Bcf | |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative, Nonmonetary Notional Amount | Bcf | 19.4 | 13.2 |
Premiums recorded in other current assets on natural gas contracts held | $ 14,100,000 | $ 9,500,000 |
Fair Value Assets, Transfers between Levels | 0 | |
Long-term Debt | 2,700,000,000 | 3,700,000,000 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair value of natural gas call options held | 0 | 3,600,000 |
Treasury notes in other assets | 4,700,000 | 3,500,000 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Corporate bonds in other assets | 9,700,000 | 6,900,000 |
Long-term Debt, Fair Value | $ 2,500,000,000 | $ 3,900,000,000 |
REGULATORY ASSETS AND LIABILI_3
REGULATORY ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Nov. 18, 2022 | Aug. 25, 2022 | Feb. 28, 2021 | |
SCHEDULE OF REGULATED ASSETS AND LIABILITIES [Line Items] | ||||||
Regulatory Assets, Current | $ 275,572 | $ 1,611,676 | ||||
Regulatory Assets, Noncurrent | 330,831 | 724,862 | ||||
Regulatory Liability, Current | (47,867) | (8,090) | ||||
Regulatory Liability, Noncurrent | (529,441) | (552,928) | ||||
Net regulatory assets and liabilities, current | 227,705 | 1,603,586 | ||||
Net regulatory assets and liabilities, noncurrent | (198,610) | 171,934 | ||||
Net Regulatory Assets | 29,095 | 1,775,520 | ||||
February 2021 Natural Gas Purchases | $ 2,100,000 | |||||
ODFA Securitization Bond Issuance | $ 1,350,000 | |||||
ONG Proceeds from Securitization Bonds | 1,300,000 | |||||
ONG Deferred Extraordinary Costs from 2021 Winter Storm Uri | 1,300,000 | |||||
Maximum amount the regulatory asset for the winter storm can be reduced by for collections of penalties assessed on marketers and individually balanced transportation customers | 52,600 | |||||
Collections of penalties assessed on marketers and individually balanced transportation customers as a result of Winter Storm Uri | 50,500 | |||||
TGS Deferred Extraordinary Costs from 2021 Winter Storm Uri | 243,100 | |||||
Deferred Extraordinary Costs from 2021 Winter Storm Uri | 258,200 | |||||
Amortization of Rate Deferral | $ 9,400 | 5,500 | $ 3,200 | |||
5.486% KGSS-I Securitized Utility Tariff Bonds Due 2032 | ||||||
SCHEDULE OF REGULATED ASSETS AND LIABILITIES [Line Items] | ||||||
Debt Instrument, Face Amount | $ 336,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 5.486% | 5.486% | ||||
West Texas Service Area | ||||||
SCHEDULE OF REGULATED ASSETS AND LIABILITIES [Line Items] | ||||||
TGS Deferred Extraordinary Costs from 2021 Winter Storm Uri | $ 43,800 | |||||
Pension and postretirement benefit costs [Member] | ||||||
SCHEDULE OF REGULATED ASSETS AND LIABILITIES [Line Items] | ||||||
Regulatory Liability, Current | (8,228) | |||||
Regulatory Liability, Noncurrent | 0 | |||||
Regulatory Liabilities | (8,228) | |||||
Federal income tax rate changes [Member] | ||||||
SCHEDULE OF REGULATED ASSETS AND LIABILITIES [Line Items] | ||||||
Regulatory Liability, Current | 0 | 0 | ||||
Regulatory Liability, Noncurrent | (529,441) | (552,928) | ||||
Regulatory Liabilities | $ (529,441) | $ (552,928) | ||||
Over-recovered purchased-gas costs [Member] | ||||||
SCHEDULE OF REGULATED ASSETS AND LIABILITIES [Line Items] | ||||||
Regulatory Asset, Amortization Period | 1 year | 1 year | ||||
Regulatory Liability, Current | $ (39,639) | $ (8,090) | ||||
Regulatory Liability, Noncurrent | 0 | 0 | ||||
Regulatory Liabilities | (39,639) | (8,090) | ||||
Total regulated liabilities [Member] | ||||||
SCHEDULE OF REGULATED ASSETS AND LIABILITIES [Line Items] | ||||||
Regulatory Liability, Current | (47,867) | (8,090) | ||||
Regulatory Liability, Noncurrent | (529,441) | (552,928) | ||||
Regulatory Liabilities | (577,308) | (561,018) | ||||
Winter weather event costs | ||||||
SCHEDULE OF REGULATED ASSETS AND LIABILITIES [Line Items] | ||||||
Regulatory Assets, Current | 221,926 | 1,536,054 | ||||
Regulatory Assets, Noncurrent | 36,291 | 428,023 | ||||
Regulatory Assets | $ 258,217 | $ 1,964,077 | ||||
Under-recovered purchased-gas costs [Member] | ||||||
SCHEDULE OF REGULATED ASSETS AND LIABILITIES [Line Items] | ||||||
Regulatory Asset, Amortization Period | 1 year | 1 year | ||||
Regulatory Assets, Current | $ 19,755 | $ 31,863 | ||||
Regulatory Assets, Noncurrent | 0 | 0 | ||||
Regulatory Assets | 19,755 | 31,863 | ||||
Pension and postretirement benefit costs [Member] | ||||||
SCHEDULE OF REGULATED ASSETS AND LIABILITIES [Line Items] | ||||||
Regulatory Assets, Current | 0 | 11,507 | ||||
Regulatory Assets, Noncurrent | 258,257 | 260,559 | ||||
Regulatory Assets | $ 258,257 | $ 272,066 | ||||
Reacquired debt costs [Member] | ||||||
SCHEDULE OF REGULATED ASSETS AND LIABILITIES [Line Items] | ||||||
Regulatory Asset, Amortization Period | 6 years | 6 years | ||||
Regulatory Assets, Current | $ 812 | $ 812 | ||||
Regulatory Assets, Noncurrent | 3,347 | 4,070 | ||||
Regulatory Assets | $ 4,159 | $ 4,882 | ||||
MGP Costs [Member] | ||||||
SCHEDULE OF REGULATED ASSETS AND LIABILITIES [Line Items] | ||||||
Regulatory Asset, Amortization Period | 15 years | 15 years | ||||
Regulatory Assets, Current | $ 98 | $ 98 | ||||
Regulatory Assets, Noncurrent | 29,743 | 29,841 | ||||
Regulatory Assets | $ 29,841 | $ 29,939 | ||||
Ad valorem tax [Member] | ||||||
SCHEDULE OF REGULATED ASSETS AND LIABILITIES [Line Items] | ||||||
Regulatory Asset, Amortization Period | 1 year | 1 year | ||||
Regulatory Assets, Current | $ 13,359 | $ 8,561 | ||||
Regulatory Assets, Noncurrent | 0 | 0 | ||||
Regulatory Assets | $ 13,359 | $ 8,561 | ||||
Weather normalization [Member] | ||||||
SCHEDULE OF REGULATED ASSETS AND LIABILITIES [Line Items] | ||||||
Regulatory Asset, Amortization Period | 1 year | 1 year | ||||
Regulatory Assets, Current | $ 8,474 | $ 10,044 | ||||
Regulatory Assets, Noncurrent | 0 | 0 | ||||
Regulatory Assets | $ 8,474 | $ 10,044 | ||||
Customer Credit Deferrals | ||||||
SCHEDULE OF REGULATED ASSETS AND LIABILITIES [Line Items] | ||||||
Regulatory Asset, Amortization Period | 1 year | 1 year | ||||
Regulatory Assets, Current | $ 9,504 | $ 10,685 | ||||
Regulatory Assets, Noncurrent | 0 | 0 | ||||
Regulatory Assets | $ 9,504 | $ 10,685 | ||||
Other regulatory assets [Member] | ||||||
SCHEDULE OF REGULATED ASSETS AND LIABILITIES [Line Items] | ||||||
Regulatory Asset, Amortization Period | 1 to 18 years | 1 to 18 years | ||||
Regulatory Assets, Current | $ 1,644 | $ 2,052 | ||||
Regulatory Assets, Noncurrent | 3,193 | 2,369 | ||||
Regulatory Assets | 4,837 | 4,421 | ||||
Total regulatory assets, net of amortization [Member] | ||||||
SCHEDULE OF REGULATED ASSETS AND LIABILITIES [Line Items] | ||||||
Regulatory Assets, Current | 275,572 | 1,611,676 | ||||
Regulatory Assets, Noncurrent | 330,831 | 724,862 | ||||
Regulatory Assets | $ 606,403 | $ 2,336,538 |
VARIABLE INTEREST ENTITIES (Det
VARIABLE INTEREST ENTITIES (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Variable Interest Entity [Line Items] | ||||
Restricted Cash and Cash Equivalents | $ 8,446 | $ 0 | ||
Accounts receivable, net | 553,834 | 341,756 | ||
Finite-Lived Intangible Assets, Net | 323,838 | 0 | ||
Long-Term Debt, Current Maturities | 20,716 | 0 | ||
Accounts payable | 360,493 | 258,554 | ||
Securitized utility tariff bonds, excluding current maturities, net of issuance costs | 309,343 | 0 | ||
Stockholders' Equity Attributable to Parent | 2,584,426 | 2,349,532 | $ 2,233,311 | $ 2,129,390 |
Revenues | 2,578,005 | 1,808,597 | 1,530,268 | |
Utilities Operating Expense | (768,961) | (723,333) | (689,307) | |
Amortization of Intangible Assets | (3,500) | |||
Interest Expense | (77,506) | (60,301) | (62,505) | |
Income before income taxes | 268,268 | $ 246,750 | $ 237,991 | |
Kansas Gas Service Securitization I LLC | ||||
Variable Interest Entity [Line Items] | ||||
Restricted Cash and Cash Equivalents | 8,446 | |||
Accounts receivable, net | 4,862 | |||
Finite-Lived Intangible Assets, Net | 323,838 | |||
Long-Term Debt, Current Maturities | 20,716 | |||
Accounts payable | 3,204 | |||
Interest Receivable | 2,202 | |||
Securitized utility tariff bonds, excluding current maturities, net of issuance costs | 309,343 | |||
Stockholders' Equity Attributable to Parent | 1,681 | |||
Revenues | 5,769 | |||
Utilities Operating Expense | (52) | |||
Amortization of Intangible Assets | (3,521) | |||
Interest Income, Other | 6 | |||
Interest Expense | (2,202) | |||
Income before income taxes | 0 | |||
Finite-Lived Intangible Asset, Expected Amortization, Year One | 27,851 | |||
Finite-Lived Intangible Asset, Expected Amortization, Year Two | 27,843 | |||
Finite-Lived Intangible Asset, Expected Amortization, Year Three | 29,391 | |||
Finite-Lived Intangible Asset, Expected Amortization, Year Four | 31,025 | |||
Finite-Lived Intangible Asset, Expected Amortization, Year Five | $ 32,751 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 7,834,557 | $ 7,274,268 | |
Accumulated depreciation and amortization | (2,205,717) | (2,083,433) | |
Net property, plant and equipment | $ 5,628,840 | $ 5,190,835 | |
Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Public Utilities, Property, Plant and Equipment, Disclosure of Composite Depreciation Rate for Plants in Service | 2.50% | 2.50% | 2.50% |
Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Public Utilities, Property, Plant and Equipment, Disclosure of Composite Depreciation Rate for Plants in Service | 3.50% | 3.50% | 3.50% |
Regulated [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 7,834,557 | $ 7,274,268 | |
Accumulated depreciation and amortization | (2,205,717) | (2,083,433) | |
Net property, plant and equipment | 5,628,840 | 5,190,835 | |
Interest costs capitalized | 4,500 | 4,200 | $ 4,200 |
Construction work in process expenditures incurred but not yet paid | 28,600 | 25,600 | $ 24,300 |
Natural gas distribution pipelines and related equipment | Regulated [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | 6,240,236 | 5,836,066 | |
Natural gas transmission pipelines and related equipment | Regulated [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | 661,379 | 624,528 | |
General plant and other | Regulated [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | 782,870 | 712,659 | |
Construction work in process | Regulated [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 150,072 | $ 101,015 |
SHARE-BASED PAYMENTS (Details)
SHARE-BASED PAYMENTS (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Payments [Line Items] | |||
Common Stock, Capital Shares Reserved for Future Issuance | 4,300,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 1,400,000 | ||
Share-based compensation expense, net of tax | $ 6,800 | $ 7,500 | $ 7,000 |
Share-based compensation, tax benefit | $ 2,300 | $ 2,500 | $ 2,300 |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Payments [Line Items] | |||
Award vesting period | 3 years | ||
Forfeiture rate maximum (in hundredths) | 3% | ||
Total compensation cost not yet recognized | $ 3,700 | ||
Total compensation cost not yet recognized, period for recognition | 1 year 9 months 18 days | ||
Nonvested beginning balance (in units) | 94,274 | ||
Nonvested beginning balance (in dollars per unit) | $ 82.16 | ||
Granted (in units) | 56,420 | ||
Weighted -average grant date fair value (per unit) | $ 76.96 | $ 72.69 | $ 96.21 |
Vested (in units) | (28,830) | ||
Vested (in dollars per unit) | $ 78.91 | ||
Forfeited (in units) | (5,231) | ||
Forfeited (in dollars per unit) | $ 84.06 | ||
Nonvested ending balance (in units) | 116,633 | 94,274 | |
Nonvested ending balance (in dollars per unit) | $ 79.32 | $ 82.16 | |
Fair value of shares granted (thousands of dollars) | $ 4,342 | $ 3,660 | $ 3,005 |
Fair value of vested shares | $ 2,900 | $ 3,400 | $ 3,300 |
Performance Unit Awards [Member] | |||
Share-based Payments [Line Items] | |||
Award vesting period | 3 years | ||
Forfeiture rate maximum (in hundredths) | 3% | ||
Description | Upon vesting, a holder of performance stock units is entitled to receive a number of shares of common stock equal to a percentage (0 percent to 200 percent) of the performance stock units granted, based on our total shareholder return over the vesting period, compared with the total shareholder return of a peer group of other utilities over the same period. | ||
Total compensation cost not yet recognized | $ 8,000 | ||
Total compensation cost not yet recognized, period for recognition | 1 year 9 months 18 days | ||
Nonvested beginning balance (in units) | 198,599 | ||
Nonvested beginning balance (in dollars per unit) | $ 90.13 | ||
Granted (in units) | 87,266 | ||
Weighted -average grant date fair value (per unit) | $ 95.80 | $ 82.51 | $ 102.77 |
Vested (in units) | (63,389) | ||
Vested (in dollars per unit) | $ 89.86 | ||
Forfeited (in units) | (7,939) | ||
Forfeited (in dollars per unit) | $ 91.41 | ||
Nonvested ending balance (in units) | 214,537 | 198,599 | |
Nonvested ending balance (in dollars per unit) | $ 92.47 | $ 90.13 | |
Fair value of shares granted (thousands of dollars) | $ 8,360 | $ 8,860 | $ 6,502 |
Fair value of vested shares | $ 5,200 | $ 7,200 | $ 10,200 |
Expected volatility rate | 34% | 32.70% | 16.40% |
Expected dividend yield | 3.22% | 3.19% | 2.25% |
Risk-free interest rate | 1.65% | 0.20% | 1.40% |
Employee Stock Purchase Plan [Member] | |||
Share-based Payments [Line Items] | |||
Common Stock, Capital Shares Reserved for Future Issuance | 1,250,000 | ||
Maximum allowable percentage of annual base pay withheld to purchase common stock | 10% | ||
Purchase price percentage of the lower of its grant date or exercise date market price (in hundredths) | 85% | ||
Percent of employees who participated in the Employee Stock Purchase Plan | 42% | 44% | 50% |
Shares sold under employee stock purchase plan | 86,657 | 89,240 | 92,507 |
Share price of shares sold under Employee Stock Purchase Plan in dollars per share | $ 65.21 | $ 63.41 | $ 64.77 |
Share-based Payment Arrangement, Expense | $ 1,100 |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Apr. 30, 2022 | |
Defined Benefit Plans and Other Postemployment Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan Assumptions Used To Determine Benefit Obligations Rate of Compensation Increase, Minimum | 3.60% | 3.10% | ||
Defined Benefit Plan Assumptions Used To Determine Benefit Obligations Rate of Compensation Increase, Maximum | 5% | 5% | ||
Compensation increase rate - minimum | 3.10% | 3.10% | 3.10% | |
Compensation increase rate- maximum | 5% | 3.90% | 4% | |
Description of basis used to determine overall expected long-term rate of return on plan assets | We determine our discount rates annually. We estimate our discount rate based upon a comparison of the expected cash flows associated with our future payments under our defined benefit pension and other postemployment obligations to a hypothetical bond portfolio created using high-quality bonds that closely match expected cash flows. Bond portfolios are developed by selecting a bond for each of the next 60 years based on the maturity dates of the bonds. Bonds selected to be included in the portfolios are only those rated by Moody’s as AA- or better and exclude callable bonds, bonds with less than a minimum issue size, yield outliers and other filtering criteria to remove unsuitable bonds. | |||
Regulatory Assets, Noncurrent | $ 330,831,000 | $ 724,862,000 | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||
Actuarial loss (gain) | 259,300,000 | 19,600,000 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Liability, Defined Benefit Plan, Noncurrent | (19,587,000) | (35,226,000) | ||
Actuarial loss (gain) | (259,300,000) | (19,600,000) | ||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | 1,400,000 | |||
Adjustment to Pension Expense Due to Remeasurment | $ 7,200,000 | |||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, before Tax | 17,010,000 | 45,896,000 | $ 42,492,000 | |
Total recognized in other comprehensive income (loss) | 5,823,000 | $ 1,250,000 | (1,038,000) | |
Amount recognized in other comprehensive income | $ 0 | |||
Health care cost-trend rate assumed for next year | 6.50% | 6% | ||
Rate to which the cost-trend rate is assumed to decline (the ultimate trend rate) | 4.50% | 4.50% | ||
Year that the rate reaches the ultimate trend rate | 2030 | 2028 | ||
Target asset allocation | 100% | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 10,900,000 | $ 9,900,000 | $ 9,400,000 | |
Non-service Costs [Member] | ||||
Defined Benefit Plans and Other Postemployment Benefit Plans Table Text Block [Line Items] | ||||
Regulatory Assets, Noncurrent | 2,800,000 | 6,100,000 | ||
Grosvenor Registered Multi Limited Partnership | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 44,818,000 | |||
Fair value of plan assets, end of period | 40,160,000 | 44,818,000 | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Unfunded Commitments | $ 0 | $ 0 | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Investment Redemption, Frequency | quarterly | quarterly | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Investment Redemption, Description | 65 | 65 | ||
K2 Institutional Investors II Limited Partnership | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | $ 46,638,000 | |||
Fair value of plan assets, end of period | 46,871,000 | $ 46,638,000 | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Unfunded Commitments | $ 0 | $ 0 | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Investment Redemption, Frequency | quarterly | quarterly | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Investment Redemption, Description | 91 | 91 | ||
Investment-grade bonds [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Target asset allocation | 60% | |||
US Large-Cap Equity [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Target asset allocation | 14% | |||
Alternative investments [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Target asset allocation | 10% | |||
Developed foreign large-cap equities [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Target asset allocation | 7% | |||
Mid-cap equities [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Target asset allocation | 5% | |||
Emerging market equities [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Target asset allocation | 1% | |||
Small-cap equities [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Target asset allocation | 3% | |||
Fixed Income Funds [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | 90 percent | |||
Equity Securities [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | 10 percent | |||
Pension Plan [Member] | ||||
Defined Benefit Plans and Other Postemployment Benefit Plans Table Text Block [Line Items] | ||||
Discount rate | 5.60% | 3.05% | ||
Weighted average discount rate | 3.05% | 2.80% | 3.50% | |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate After Remeasurement | 4.55% | |||
Expected long-term return on plan assets | 6.40% | 7.15% | 7.20% | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||
Benefit obligation, beginning of period | $ 1,049,990,000 | $ 1,077,641,000 | ||
Service cost | 10,369,000 | 13,811,000 | $ 12,869,000 | |
Interest cost | 36,150,000 | 29,458,000 | 34,179,000 | |
Defined Benefit Plan, Benefit Obligation, Contributions by Plan Participant | 0 | 0 | ||
Actuarial loss (gain) | (259,261,000) | (19,587,000) | ||
Defined Benefit Plan, Benefit Obligation, Benefits Paid | (55,326,000) | (51,333,000) | ||
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Plan Amendment | 2,711,000 | 0 | ||
Benefit obligation, end of period | 784,633,000 | 1,049,990,000 | 1,077,641,000 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 1,013,244,000 | 987,583,000 | ||
Actual return on plan assets | (190,484,000) | 75,999,000 | ||
Employer contributions | 1,527,000 | 995,000 | ||
Defined Benefit Plan, Plan Assets, Contributions by Plan Participant | 0 | 0 | ||
Benefits paid | (55,326,000) | (51,333,000) | ||
Fair value of plan assets, end of period | 768,961,000 | 1,013,244,000 | 987,583,000 | |
Defined Benefit Plan, Funded (Unfunded) Status of Plan | (15,672,000) | (36,746,000) | ||
Assets for Plan Benefits, Defined Benefit Plan | 5,267,000 | 0 | ||
Liability, Defined Benefit Plan, Current | (1,352,000) | (1,521,000) | ||
Liability, Defined Benefit Plan, Noncurrent | (19,587,000) | (35,225,000) | ||
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position | (15,672,000) | (36,746,000) | ||
Accumulated benefit obligation | 746,800,000 | 1,000,000,000 | ||
Actuarial loss (gain) | 259,261,000 | 19,587,000 | ||
Service cost | 10,369,000 | 13,811,000 | 12,869,000 | |
Interest cost | 36,150,000 | 29,458,000 | 34,179,000 | |
Expected return on assets | (58,528,000) | (62,382,000) | (61,119,000) | |
Amortization of unrecognized prior service cost | 248,000 | 0 | 0 | |
Defined Benefit Plan, Amortization of Gain (Loss) | 16,793,000 | 45,523,000 | 42,319,000 | |
Net periodic benefit cost | 5,032,000 | 26,410,000 | 28,248,000 | |
Net loss arising during the period | 7,369,000 | 67,000 | (2,519,000) | |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, before Tax | 159,000 | 1,562,000 | 1,192,000 | |
Deferred income taxes | (1,705,000) | (379,000) | 289,000 | |
Total recognized in other comprehensive income (loss) | 5,823,000 | 1,250,000 | (1,038,000) | |
Prior service credit (cost) | (2,463,000) | 0 | ||
Accumulated loss | (245,290,000) | (272,332,000) | ||
Accumulated other comprehensive loss before regulatory assets | (247,753,000) | (272,332,000) | ||
Regulatory asset for regulated entities | 246,975,000 | 264,027,000 | ||
Accumulated other comprehensive loss after regulatory assets | (778,000) | (8,305,000) | ||
Deferred income taxes | 74,000 | 1,778,000 | ||
Accumulated other comprehensive loss, net of tax | (704,000) | (6,527,000) | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||||
Level 3 fair value measurement, January 1 | 108,757,000 | 112,237,000 | ||
Net realized and unrealized gains (losses) | 1,467,000 | 1,625,000 | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Period Decrease | (7,458,000) | (3,368,000) | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 3,215,000 | 2,197,000 | ||
Settlements | (4,470,000) | (3,934,000) | ||
Level 3 fair value measurement, December 31 | 101,511,000 | 108,757,000 | 112,237,000 | |
Defined Benefit Plan, Expected Future Benefit Payment, Year One | 53,970,000 | |||
Defined Benefit Plan, Expected Future Benefit Payment, Year Two | 54,807,000 | |||
Defined Benefit Plan, Expected Future Benefit Payment, Year Three | 55,446,000 | |||
Defined Benefit Plan, Expected Future Benefit Payment, Year Four | 56,241,000 | |||
Defined Benefit Plan, Expected Future Benefit Payment, Year Five | 56,546,000 | |||
Defined Benefit Plan, Expected Future Benefit Payment, after Year Five for Next Five Years | 287,424,000 | |||
Pension Plan [Member] | Equity Securities [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 223,871,000 | |||
Fair value of plan assets, end of period | 150,027,000 | 223,871,000 | ||
Pension Plan [Member] | Government Obligations [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 205,741,000 | |||
Fair value of plan assets, end of period | 160,799,000 | 205,741,000 | ||
Pension Plan [Member] | Corporate Obligations [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 440,445,000 | |||
Fair value of plan assets, end of period | 329,973,000 | 440,445,000 | ||
Pension Plan [Member] | Cash and Money Market Funds [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 34,410,000 | |||
Fair value of plan assets, end of period | 26,651,000 | 34,410,000 | ||
Pension Plan [Member] | Insurance contracts and group annuity contracts [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 17,301,000 | |||
Fair value of plan assets, end of period | 14,480,000 | 17,301,000 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||||
Level 3 fair value measurement, January 1 | 17,301,000 | 24,603,000 | ||
Net realized and unrealized gains (losses) | 1,467,000 | 0 | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Period Decrease | 0 | (3,368,000) | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 182,000 | 0 | ||
Settlements | (4,470,000) | (3,934,000) | ||
Level 3 fair value measurement, December 31 | 14,480,000 | 17,301,000 | 24,603,000 | |
Pension Plan [Member] | Other Investments [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 91,476,000 | |||
Fair value of plan assets, end of period | 87,031,000 | 91,476,000 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||||
Level 3 fair value measurement, January 1 | 91,456,000 | 87,634,000 | ||
Net realized and unrealized gains (losses) | 0 | 1,625,000 | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Period Decrease | (7,458,000) | 0 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 3,033,000 | 2,197,000 | ||
Settlements | 0 | 0 | ||
Level 3 fair value measurement, December 31 | 87,031,000 | 91,456,000 | $ 87,634,000 | |
Pension Plan [Member] | Level 1 [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 227,735,000 | |||
Fair value of plan assets, end of period | 154,493,000 | 227,735,000 | ||
Pension Plan [Member] | Level 1 [Member] | Equity Securities [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 223,871,000 | |||
Fair value of plan assets, end of period | 150,027,000 | 223,871,000 | ||
Pension Plan [Member] | Level 1 [Member] | Government Obligations [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 0 | |||
Fair value of plan assets, end of period | 0 | 0 | ||
Pension Plan [Member] | Level 1 [Member] | Corporate Obligations [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 0 | |||
Fair value of plan assets, end of period | 0 | 0 | ||
Pension Plan [Member] | Level 1 [Member] | Cash and Money Market Funds [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 3,864,000 | |||
Fair value of plan assets, end of period | 4,466,000 | 3,864,000 | ||
Pension Plan [Member] | Level 1 [Member] | Insurance contracts and group annuity contracts [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 0 | |||
Fair value of plan assets, end of period | 0 | 0 | ||
Pension Plan [Member] | Level 1 [Member] | Other Investments [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 0 | |||
Fair value of plan assets, end of period | 0 | 0 | ||
Pension Plan [Member] | Level 2 [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 676,752,000 | |||
Fair value of plan assets, end of period | 512,957,000 | 676,752,000 | ||
Pension Plan [Member] | Level 2 [Member] | Equity Securities [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 0 | |||
Fair value of plan assets, end of period | 0 | 0 | ||
Pension Plan [Member] | Level 2 [Member] | Government Obligations [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 205,741,000 | |||
Fair value of plan assets, end of period | 160,799,000 | 205,741,000 | ||
Pension Plan [Member] | Level 2 [Member] | Corporate Obligations [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 440,445,000 | |||
Fair value of plan assets, end of period | 329,973,000 | 440,445,000 | ||
Pension Plan [Member] | Level 2 [Member] | Cash and Money Market Funds [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 30,546,000 | |||
Fair value of plan assets, end of period | 22,185,000 | 30,546,000 | ||
Pension Plan [Member] | Level 2 [Member] | Insurance contracts and group annuity contracts [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 0 | |||
Fair value of plan assets, end of period | 0 | 0 | ||
Pension Plan [Member] | Level 2 [Member] | Other Investments [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 20,000 | |||
Fair value of plan assets, end of period | 0 | 20,000 | ||
Pension Plan [Member] | Level 3 [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 108,757,000 | |||
Fair value of plan assets, end of period | 101,511,000 | 108,757,000 | ||
Pension Plan [Member] | Level 3 [Member] | Equity Securities [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 0 | |||
Fair value of plan assets, end of period | 0 | 0 | ||
Pension Plan [Member] | Level 3 [Member] | Government Obligations [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 0 | |||
Fair value of plan assets, end of period | 0 | 0 | ||
Pension Plan [Member] | Level 3 [Member] | Corporate Obligations [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 0 | |||
Fair value of plan assets, end of period | 0 | 0 | ||
Pension Plan [Member] | Level 3 [Member] | Cash and Money Market Funds [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 0 | |||
Fair value of plan assets, end of period | 0 | 0 | ||
Pension Plan [Member] | Level 3 [Member] | Insurance contracts and group annuity contracts [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 17,301,000 | |||
Fair value of plan assets, end of period | 17,301,000 | |||
Pension Plan [Member] | Level 3 [Member] | Other Investments [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | $ 91,456,000 | |||
Fair value of plan assets, end of period | $ 91,456,000 | |||
Other Postretirement Benefits Plan [Member] | ||||
Defined Benefit Plans and Other Postemployment Benefit Plans Table Text Block [Line Items] | ||||
Minimum number of years of service for certain employees to be eligible to participate in shared welfare plans that provide postemployment medical and life insurance benefits | five years | |||
Discount rate | 5.70% | 3% | ||
Weighted average discount rate | 3% | 2.70% | 3.40% | |
Expected long-term return on plan assets | 5.85% | 7.50% | 7.65% | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||
Benefit obligation, beginning of period | $ 222,806,000 | $ 239,530,000 | ||
Service cost | 1,274,000 | 1,587,000 | $ 1,692,000 | |
Interest cost | 6,448,000 | 6,251,000 | 7,557,000 | |
Defined Benefit Plan, Benefit Obligation, Contributions by Plan Participant | 3,035,000 | 3,226,000 | ||
Actuarial loss (gain) | (48,609,000) | (8,894,000) | ||
Defined Benefit Plan, Benefit Obligation, Benefits Paid | (16,612,000) | (18,894,000) | ||
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Plan Amendment | 0 | 0 | ||
Benefit obligation, end of period | 168,342,000 | 222,806,000 | 239,530,000 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 231,994,000 | 230,895,000 | ||
Actual return on plan assets | (38,432,000) | 14,786,000 | ||
Employer contributions | 1,892,000 | 1,981,000 | ||
Defined Benefit Plan, Plan Assets, Contributions by Plan Participant | 3,035,000 | 3,226,000 | ||
Benefits paid | (16,612,000) | (18,894,000) | ||
Fair value of plan assets, end of period | 181,877,000 | 231,994,000 | 230,895,000 | |
Defined Benefit Plan, Funded (Unfunded) Status of Plan | 13,535,000 | 9,188,000 | ||
Assets for Plan Benefits, Defined Benefit Plan | 13,535,000 | 9,188,000 | ||
Liability, Defined Benefit Plan, Current | 0 | 0 | ||
Liability, Defined Benefit Plan, Noncurrent | 0 | 0 | ||
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position | 13,535,000 | 9,188,000 | ||
Actuarial loss (gain) | 48,609,000 | 8,894,000 | ||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | 0 | |||
Service cost | 1,274,000 | 1,587,000 | 1,692,000 | |
Interest cost | 6,448,000 | 6,251,000 | 7,557,000 | |
Expected return on assets | (13,181,000) | (16,807,000) | (15,469,000) | |
Amortization of unrecognized prior service cost | 41,000 | (279,000) | (117,000) | |
Defined Benefit Plan, Amortization of Gain (Loss) | 217,000 | 373,000 | 173,000 | |
Net periodic benefit cost | (5,201,000) | (8,875,000) | (6,164,000) | |
Prior service credit (cost) | (153,000) | (194,000) | ||
Accumulated loss | (8,557,000) | (5,887,000) | ||
Accumulated other comprehensive loss before regulatory assets | (8,710,000) | (6,081,000) | ||
Regulatory asset for regulated entities | 8,710,000 | 6,081,000 | ||
Accumulated other comprehensive loss after regulatory assets | 0 | 0 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||||
Defined Benefit Plan, Expected Future Benefit Payment, Year One | 15,502,000 | |||
Defined Benefit Plan, Expected Future Benefit Payment, Year Two | 15,150,000 | |||
Defined Benefit Plan, Expected Future Benefit Payment, Year Three | 14,878,000 | |||
Defined Benefit Plan, Expected Future Benefit Payment, Year Four | 14,488,000 | |||
Defined Benefit Plan, Expected Future Benefit Payment, Year Five | 14,199,000 | |||
Defined Benefit Plan, Expected Future Benefit Payment, after Year Five for Next Five Years | 65,748,000 | |||
Other Postretirement Benefits Plan [Member] | Equity Securities [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 25,577,000 | |||
Fair value of plan assets, end of period | 5,983,000 | 25,577,000 | ||
Other Postretirement Benefits Plan [Member] | Government Obligations [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 41,366,000 | |||
Fair value of plan assets, end of period | 43,291,000 | 41,366,000 | ||
Other Postretirement Benefits Plan [Member] | Corporate Obligations [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 41,601,000 | |||
Fair value of plan assets, end of period | 38,095,000 | 41,601,000 | ||
Other Postretirement Benefits Plan [Member] | Cash and Money Market Funds [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 13,532,000 | |||
Fair value of plan assets, end of period | 8,371,000 | 13,532,000 | ||
Other Postretirement Benefits Plan [Member] | Insurance contracts and group annuity contracts [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 109,918,000 | |||
Fair value of plan assets, end of period | 86,137,000 | 109,918,000 | ||
Other Postretirement Benefits Plan [Member] | Level 1 [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 26,119,000 | |||
Fair value of plan assets, end of period | 6,733,000 | 26,119,000 | ||
Other Postretirement Benefits Plan [Member] | Level 1 [Member] | Equity Securities [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 25,577,000 | |||
Fair value of plan assets, end of period | 5,983,000 | 25,577,000 | ||
Other Postretirement Benefits Plan [Member] | Level 1 [Member] | Government Obligations [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 0 | |||
Fair value of plan assets, end of period | 0 | 0 | ||
Other Postretirement Benefits Plan [Member] | Level 1 [Member] | Corporate Obligations [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 0 | |||
Fair value of plan assets, end of period | 0 | 0 | ||
Other Postretirement Benefits Plan [Member] | Level 1 [Member] | Cash and Money Market Funds [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 542,000 | |||
Fair value of plan assets, end of period | 750,000 | 542,000 | ||
Other Postretirement Benefits Plan [Member] | Level 1 [Member] | Insurance contracts and group annuity contracts [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 0 | |||
Fair value of plan assets, end of period | 0 | 0 | ||
Other Postretirement Benefits Plan [Member] | Level 2 [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 205,875,000 | |||
Fair value of plan assets, end of period | 175,144,000 | 205,875,000 | ||
Other Postretirement Benefits Plan [Member] | Level 2 [Member] | Equity Securities [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 0 | |||
Fair value of plan assets, end of period | 0 | 0 | ||
Other Postretirement Benefits Plan [Member] | Level 2 [Member] | Government Obligations [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 41,366,000 | |||
Fair value of plan assets, end of period | 43,291,000 | 41,366,000 | ||
Other Postretirement Benefits Plan [Member] | Level 2 [Member] | Corporate Obligations [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 41,601,000 | |||
Fair value of plan assets, end of period | 38,095,000 | 41,601,000 | ||
Other Postretirement Benefits Plan [Member] | Level 2 [Member] | Cash and Money Market Funds [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 12,990,000 | |||
Fair value of plan assets, end of period | 7,621,000 | 12,990,000 | ||
Other Postretirement Benefits Plan [Member] | Level 2 [Member] | Insurance contracts and group annuity contracts [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 109,918,000 | |||
Fair value of plan assets, end of period | 86,137,000 | 109,918,000 | ||
Other Postretirement Benefits Plan [Member] | Level 3 [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 0 | |||
Fair value of plan assets, end of period | 0 | 0 | ||
Other Postretirement Benefits Plan [Member] | Level 3 [Member] | Equity Securities [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 0 | |||
Fair value of plan assets, end of period | 0 | 0 | ||
Other Postretirement Benefits Plan [Member] | Level 3 [Member] | Government Obligations [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 0 | |||
Fair value of plan assets, end of period | 0 | 0 | ||
Other Postretirement Benefits Plan [Member] | Level 3 [Member] | Corporate Obligations [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 0 | |||
Fair value of plan assets, end of period | 0 | 0 | ||
Other Postretirement Benefits Plan [Member] | Level 3 [Member] | Cash and Money Market Funds [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 0 | |||
Fair value of plan assets, end of period | 0 | 0 | ||
Other Postretirement Benefits Plan [Member] | Level 3 [Member] | Insurance contracts and group annuity contracts [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of period | 0 | |||
Fair value of plan assets, end of period | $ 0 | 0 | ||
ONE Gas 401(k) Plan [Member] | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 100% | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 6% | |||
Defined Contribution Plan, Cost | $ 15,300,000 | $ 14,300,000 | $ 13,800,000 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current income tax provision (benefit) | |||
Federal | $ 61,745 | $ (1,568) | $ 20,129 |
State | 6,815 | (1,565) | 2,965 |
Total current income tax provision (benefit) | 68,560 | (3,133) | 23,094 |
Deferred income tax provision | |||
Federal | (22,234) | 37,810 | 10,757 |
State | 200 | 5,639 | 7,728 |
Total deferred income tax provision | (22,034) | 43,449 | 18,485 |
Income Tax Reconciliation [Abstract] | |||
Income before income taxes | $ 268,268 | $ 246,750 | $ 237,991 |
Federal Statutory Income Tax Rate | 21% | 21% | 21% |
Provision for federal income taxes | $ 56,335 | $ 51,817 | $ 49,978 |
State income taxes, net of federal benefit | 7,016 | 4,074 | 10,693 |
Amortization of EDIT regulatory liability | (17,986) | (17,289) | (17,031) |
Effective Income Tax Rate Reconciliation, tax benefit of employee share based compensation | 350 | (469) | (1,489) |
Other, net | 811 | 2,183 | (572) |
Income tax provision | 46,526 | 40,316 | $ 41,579 |
Reduction in ADIT recorded as an EDIT regulatory liability associated with reduction of Oklahoma state income tax | 29,300 | ||
Reduction in income tax expense for the amortization of the regulatory liability associated with excess ADIT that was returned to customers | 18,000 | 17,300 | |
Deferred tax assets | |||
Deferred tax assets, employee benefits and other accrued liabilities | 4,256 | 11,126 | |
Deferred tax asset, regulatory adjustments | 114,551 | 120,051 | |
Net operating loss | 161,320 | 424,861 | |
Deferred Tax Assets, Leasing Arrangements | 9,158 | 6,906 | |
Deferred Tax Assets, Regulatory Assets and Liabilities | 3,384 | 0 | |
Other | 3,014 | 12,597 | |
Total deferred tax assets | 295,683 | 575,541 | |
Deferred tax liabilities | |||
Excess of tax over book depreciation | 792,570 | 734,051 | |
Purchased-gas cost adjustment - winter weather event | 121,347 | 421,070 | |
Purchased-gas cost adjustment - other | 0 | 37,433 | |
Other regulatory assets and liabilities, net | 71,180 | 71,541 | |
Deferred Tax Liabilities, Leasing Arrangements | 9,042 | 6,730 | |
Total deferred tax liabilities | 994,139 | 1,270,825 | |
Net deferred tax liabilities | 698,456 | $ 695,284 | |
Deferred Tax Liabilities, Regulatory Assets and Liabilities - Winter Storm Uri | (299,700) | ||
Domestic Tax Authority | |||
Deferred tax assets | |||
Net operating loss | 152,200 | ||
State and Local Jurisdiction | |||
Deferred tax assets | |||
Net operating loss | $ 9,100 |
OTHER INCOME AND EXPENSE (Detai
OTHER INCOME AND EXPENSE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other expense, net | $ (4,183) | $ (3,207) | $ (3,020) |
Net periodic cost other than service cost | |||
Other expense, net | 3,766 | (3,930) | (5,071) |
Earnings (losses) on investments associated with nonqualified employee benefit plans | |||
Other expense, net | (7,197) | 3,699 | 4,616 |
Other, net | |||
Other expense, net | $ (752) | $ (2,976) | $ (2,565) |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - (Details) $ in Millions | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Commitments and Contingencies [Line Items] | ||
Environmental Loss Contingency Statement Of Financial Position Extensible Enumeration Not Disclosed Flag | $ 12.7 | $ 22.8 |
MGP Costs [Member] | ||
Commitments and Contingencies [Line Items] | ||
Number Of Former Manufactured Gas Sites Where We Own Or Retain Legal Responsibility For Environmental Conditions | 12 | |
Number of sites where regulatory closure has been achieved | 5 | |
Deferred MGP Costs, Maximum | $ 15 | |
Regulatory Asset for Costs Associated with Manufactured Gas Sites | $ 29.8 | $ 29.9 |
Number of sites with ongoing groundwater monitoring | 7 |