Document And Entity Information
Document And Entity Information | 6 Months Ended |
Jun. 30, 2017shares | |
Entity Information [Line Items] | |
Entity Registrant Name | PUGET ENERGY INC /WA |
Entity Central Index Key | 1,085,392 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 200 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | Q2 |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Jun. 30, 2017 |
Subsidiaries [Member] | |
Entity Information [Line Items] | |
Entity Registrant Name | PUGET SOUND ENERGY INC |
Entity Central Index Key | 81,100 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 85,903,791 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | Q2 |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Jun. 30, 2017 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Operating revenue: | ||||
Electric | $ 529,807 | $ 497,152 | $ 1,198,792 | $ 1,127,343 |
Natural gas | 180,105 | 163,443 | 580,169 | 486,851 |
Other | 9,855 | 7,574 | 18,038 | 16,672 |
Total operating revenue | 719,767 | 668,169 | 1,796,999 | 1,630,866 |
Energy costs: | ||||
Purchased electricity | 129,799 | 118,551 | 309,381 | 261,448 |
Electric generation fuel | 34,163 | 40,930 | 85,473 | 95,123 |
Residential exchange | (15,121) | (13,376) | (38,568) | (33,516) |
Purchased natural gas | 63,183 | 48,273 | 215,984 | 171,376 |
Unrealized (gain) loss on derivative instruments, net | 3,834 | (46,724) | 23,121 | (63,546) |
Utility operations and maintenance | 145,555 | 138,018 | 297,618 | 284,008 |
Non-utility expense and other | 6,144 | 5,179 | 11,339 | 10,814 |
Depreciation and amortization | 119,457 | 111,273 | 234,710 | 218,787 |
Conservation amortization | 25,691 | 22,540 | 60,453 | 55,751 |
Taxes other than income taxes | 77,032 | 67,871 | 195,731 | 170,163 |
Total operating expenses | 589,737 | 492,535 | 1,395,242 | 1,170,408 |
Operating income (loss) | 130,030 | 175,634 | 401,757 | 460,458 |
Other income (deductions): | ||||
Other income | 6,263 | 7,078 | 12,223 | 13,053 |
Other expense | (2,042) | (2,122) | (3,257) | (3,462) |
Non-hedged interest rate swap (expense) income | 0 | (359) | 28 | (1,213) |
Interest charges: | ||||
AFUDC | 2,555 | 2,603 | 4,730 | 4,962 |
Interest expense | (88,409) | (88,676) | (176,991) | (177,489) |
Income (loss) before income taxes | 48,397 | 94,158 | 238,490 | 296,309 |
Income tax (benefit) expense | 13,122 | 29,605 | 75,665 | 90,570 |
Net income (loss) | 35,275 | 64,553 | 162,825 | 205,739 |
Subsidiaries [Member] | ||||
Operating revenue: | ||||
Electric | 529,807 | 497,152 | 1,198,792 | 1,127,343 |
Natural gas | 180,105 | 163,443 | 580,169 | 486,851 |
Other | 9,855 | 7,574 | 18,038 | 16,672 |
Total operating revenue | 719,767 | 668,169 | 1,796,999 | 1,630,866 |
Energy costs: | ||||
Purchased electricity | 129,799 | 118,551 | 309,381 | 261,448 |
Electric generation fuel | 34,163 | 40,930 | 85,473 | 95,123 |
Residential exchange | (15,121) | (13,376) | (38,568) | (33,516) |
Purchased natural gas | 63,183 | 48,273 | 215,984 | 171,376 |
Unrealized (gain) loss on derivative instruments, net | 3,834 | (46,724) | 23,121 | (63,546) |
Utility operations and maintenance | 145,555 | 138,018 | 297,618 | 284,008 |
Non-utility expense and other | 9,374 | 8,822 | 17,865 | 17,856 |
Depreciation and amortization | 119,457 | 111,273 | 234,710 | 218,787 |
Conservation amortization | 25,691 | 22,540 | 60,453 | 55,751 |
Taxes other than income taxes | 77,032 | 67,871 | 195,731 | 170,163 |
Total operating expenses | 592,967 | 496,178 | 1,401,768 | 1,177,450 |
Operating income (loss) | 126,800 | 171,991 | 395,231 | 453,416 |
Other income (deductions): | ||||
Other income | 6,126 | 7,077 | 12,086 | 13,052 |
Other expense | (2,042) | (2,122) | (3,257) | (3,462) |
Interest charges: | ||||
AFUDC | 2,555 | 2,603 | 4,730 | 4,962 |
Interest expense | (59,991) | (60,647) | (120,453) | (121,422) |
Income (loss) before income taxes | 73,448 | 118,902 | 288,337 | 346,546 |
Income tax (benefit) expense | 22,794 | 38,002 | 94,591 | 109,140 |
Net income (loss) | $ 50,654 | $ 80,900 | $ 193,746 | $ 237,406 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Parent [Line Items] | ||||
Net income (loss) | $ 35,275 | $ 64,553 | $ 162,825 | $ 205,739 |
Other comprehensive income (loss): | ||||
Net unrealized gain (loss) from pension and postretirement plans, net of tax | (214) | (185) | 666 | (371) |
Other comprehensive income (loss) | (214) | (185) | 666 | (371) |
Comprehensive income (loss) | 35,061 | 64,368 | 163,491 | 205,368 |
Subsidiaries [Member] | ||||
Parent [Line Items] | ||||
Net income (loss) | 50,654 | 80,900 | 193,746 | 237,406 |
Other comprehensive income (loss): | ||||
Net unrealized gain (loss) from pension and postretirement plans, net of tax | 2,123 | 2,340 | 5,339 | 4,680 |
Amortization of treasury interest rate swaps to earnings, net of tax | 79 | 79 | 158 | 158 |
Other comprehensive income (loss) | 2,202 | 2,419 | 5,497 | 4,838 |
Comprehensive income (loss) | $ 52,856 | $ 83,319 | $ 199,243 | $ 242,244 |
CONSOLIDATED STATEMENTS OF COM4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Net unrealized gain (loss) from pension and postretirement plans, net of tax | $ (115) | $ (100) | $ 359 | $ (200) |
Reclassification of net unrealized loss on energy derivative instruments during the period, net of tax | 0 | 0 | 0 | 0 |
Subsidiaries [Member] | ||||
Net unrealized gain (loss) from pension and postretirement plans, net of tax | 1,143 | 1,260 | 2,875 | 2,520 |
Reclassification of net unrealized loss on energy derivative instruments during the period, net of tax | 0 | 0 | 0 | 0 |
Amortization of treasury interest rate swaps to earnings, net of tax | $ 43 | $ 43 | $ 86 | $ 86 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Utility plant (at original cost, including construction work in progress): | ||
Electric plant | $ 7,824,350 | $ 7,673,772 |
Natural gas plant | 3,178,998 | 3,051,586 |
Common plant | 673,542 | 594,994 |
Less: Accumulated depreciation and amortization | (2,321,677) | (2,161,796) |
Net utility plant | 9,355,213 | 9,158,556 |
Other property and investments: | ||
Goodwill | 1,656,513 | 1,656,513 |
Other property and investments | 146,316 | 106,418 |
Total other property and investments | 1,802,829 | 1,762,931 |
Current assets: | ||
Cash and cash equivalents | 7,805 | 28,878 |
Restricted cash | 12,048 | 12,418 |
Accounts receivable, net of allowance for doubtful accounts | 251,304 | 329,375 |
Unbilled revenue | 115,945 | 234,053 |
Purchased gas adjustment receivable | 0 | 2,785 |
Materials and supplies, at average cost | 100,772 | 106,378 |
Fuel and gas inventory, at average cost | 55,598 | 58,181 |
Unrealized gain on derivative instruments | 16,078 | 54,341 |
Prepaid expense and other | 29,146 | 43,046 |
Power contract acquisition adjustment gain | 15,544 | 33,413 |
Total current assets | 604,240 | 902,868 |
Other long-term and regulatory assets: | ||
Regulatory asset for deferred income taxes | 71,598 | 72,038 |
Power cost adjustment mechanism | 4,505 | 4,531 |
Regulatory assets related to power contracts | 20,737 | 22,613 |
Other regulatory assets | 1,004,297 | 1,034,348 |
Derivative Asset, Noncurrent | 4,505 | 8,738 |
Power contract acquisition adjustment gain | 168,040 | 241,648 |
Other | 62,589 | 58,109 |
Total other long-term and regulatory assets | 1,336,271 | 1,442,025 |
Total assets | 13,098,553 | 13,266,380 |
Capitalization: | ||
Common stock | 0 | 0 |
Additional paid-in capital | 3,308,957 | 3,308,957 |
Earnings reinvested in the business | 576,161 | 413,468 |
Accumulated other comprehensive income (loss), net of tax | (33,046) | (33,712) |
Total common shareholder's equity | 3,852,072 | 3,688,713 |
Long-term debt: | ||
First mortgage bonds and senior notes | 3,162,000 | 3,362,000 |
Pollution control bonds | 161,860 | 161,860 |
Junior subordinated notes | 250,000 | 250,000 |
Long-term debt | 1,860,554 | 1,812,480 |
Debt discount, issuance costs and other | (227,766) | (234,679) |
Total long-term debt | 5,206,648 | 5,351,661 |
Total capitalization | 9,058,720 | 9,040,374 |
Current liabilities: | ||
Accounts payable | 245,171 | 317,043 |
Short-term debt | 5,000 | 245,763 |
Long-term Debt, Current Maturities | 202,412 | 2,412 |
Purchased gas adjustment liability | 10,980 | 0 |
Accrued expenses: | ||
Taxes | 102,132 | 111,428 |
Salaries and wages | 39,245 | 49,749 |
Interest | 74,046 | 73,610 |
Unrealized loss on derivative instruments | 44,031 | 44,310 |
Power contract acquisition adjustment loss | 2,983 | 3,159 |
Other | 87,756 | 71,996 |
Total current liabilities | 813,756 | 919,470 |
Long-term and regulatory liabilities: | ||
Deferred income taxes | 1,646,515 | 1,570,931 |
Unrealized loss on derivative instruments | 18,237 | 16,261 |
Regulatory liabilities | 620,950 | 654,622 |
Regulatory liabilities related to power contracts | 183,583 | 275,061 |
Power contract acquisition adjustment loss | 17,754 | 19,454 |
Other deferred credits | 739,038 | 770,207 |
Total long-term and regulatory liabilities | 3,226,077 | 3,306,536 |
Commitments and contingencies (Note 8) | ||
Total capitalization and liabilities | 13,098,553 | 13,266,380 |
Subsidiaries [Member] | ||
Utility plant (at original cost, including construction work in progress): | ||
Electric plant | 9,952,520 | 9,813,169 |
Natural gas plant | 3,764,503 | 3,640,271 |
Common plant | 711,266 | 632,718 |
Less: Accumulated depreciation and amortization | (5,073,076) | (4,927,602) |
Net utility plant | 9,355,213 | 9,158,556 |
Other property and investments: | ||
Other property and investments | 78,928 | 77,960 |
Total other property and investments | 78,928 | 77,960 |
Current assets: | ||
Cash and cash equivalents | 7,452 | 28,481 |
Restricted cash | 12,048 | 12,418 |
Accounts receivable, net of allowance for doubtful accounts | 257,745 | 344,964 |
Unbilled revenue | 115,945 | 234,053 |
Purchased gas adjustment receivable | 0 | 2,785 |
Materials and supplies, at average cost | 100,772 | 106,378 |
Fuel and gas inventory, at average cost | 54,378 | 56,851 |
Unrealized gain on derivative instruments | 16,078 | 54,341 |
Prepaid expense and other | 29,146 | 43,046 |
Total current assets | 593,564 | 883,317 |
Other long-term and regulatory assets: | ||
Regulatory asset for deferred income taxes | 71,085 | 71,517 |
Power cost adjustment mechanism | 4,505 | 4,531 |
Other regulatory assets | 1,004,303 | 1,034,352 |
Derivative Asset, Noncurrent | 4,505 | 8,738 |
Other | 62,589 | 58,109 |
Total other long-term and regulatory assets | 1,146,987 | 1,177,247 |
Total assets | 11,174,692 | 11,297,080 |
Capitalization: | ||
Common stock | 859 | 859 |
Additional paid-in capital | 3,275,105 | 3,275,105 |
Earnings reinvested in the business | 501,967 | 359,795 |
Accumulated other comprehensive income (loss), net of tax | (140,014) | (145,511) |
Total common shareholder's equity | 3,637,917 | 3,490,248 |
Long-term debt: | ||
First mortgage bonds and senior notes | 3,162,000 | 3,362,000 |
Pollution control bonds | 161,860 | 161,860 |
Junior subordinated notes | 250,000 | 250,000 |
Debt discount, issuance costs and other | (27,669) | (28,974) |
Total long-term debt | 3,546,191 | 3,744,886 |
Total capitalization | 7,184,108 | 7,235,134 |
Current liabilities: | ||
Accounts payable | 245,171 | 317,043 |
Short-term debt | 5,000 | 245,763 |
Long-term Debt, Current Maturities | 202,412 | 2,412 |
Purchased gas adjustment liability | 10,980 | 0 |
Accrued expenses: | ||
Taxes | 102,132 | 111,428 |
Salaries and wages | 39,245 | 49,749 |
Interest | 48,232 | 48,087 |
Unrealized loss on derivative instruments | 44,031 | 44,170 |
Other | 87,756 | 71,996 |
Total current liabilities | 784,959 | 890,648 |
Long-term and regulatory liabilities: | ||
Deferred income taxes | 1,829,508 | 1,732,390 |
Unrealized loss on derivative instruments | 18,237 | 16,261 |
Regulatory liabilities | 619,736 | 653,296 |
Other deferred credits | 738,144 | 769,351 |
Total long-term and regulatory liabilities | 3,205,625 | 3,171,298 |
Commitments and contingencies (Note 8) | ||
Total capitalization and liabilities | $ 11,174,692 | $ 11,297,080 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
ASSETS | ||
Construction work in progress | $ 505,334 | $ 420,278 |
Current assets: | ||
Allowance for doubtful accounts | $ 9,977 | $ 9,798 |
Common shareholder’s equity: | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 1,000 | 1,000 |
Common stock, shares outstanding (in shares) | 200 | 200 |
Subsidiaries [Member] | ||
ASSETS | ||
Construction work in progress | $ 505,334 | $ 420,278 |
Current assets: | ||
Allowance for doubtful accounts | $ 9,977 | $ 9,798 |
Common shareholder’s equity: | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, shares outstanding (in shares) | 85,903,791 | 85,903,791 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Operating activities: | ||
Net income (loss) | $ 162,825 | $ 205,739 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 234,710 | 218,787 |
Conservation amortization | 60,453 | 55,751 |
Deferred income taxes and tax credits, net | 75,665 | 90,018 |
Net unrealized (gain) loss on derivative instruments | 22,980 | (65,414) |
AFUDC – equity | (6,766) | (7,048) |
Funding of pension liability | (18,000) | (9,000) |
Regulatory Assets | (44,731) | (120,615) |
Other long-term assets and liabilities | 11,194 | 14,519 |
Change in certain current assets and liabilities: | ||
Accounts receivable and unbilled revenue | 196,179 | 184,595 |
Materials and supplies | 5,606 | (18,594) |
Fuel and gas inventory | 2,473 | 4,974 |
Prepayments and other | 13,900 | (2,738) |
Purchased gas adjustment | 13,765 | (1,027) |
Accounts payable | (49,478) | (64,132) |
Taxes payable | (9,296) | (13,230) |
Other | (5,809) | 4,650 |
Net cash provided by (used in) operating activities | 665,670 | 477,235 |
Investing activities: | ||
Construction expenditures - excluding equity AFUDC | (496,652) | (303,834) |
Restricted cash | 370 | (2,179) |
Other | (6,642) | (4,851) |
Net cash provided by (used in) investing activities | (502,924) | (310,864) |
Financing activities: | ||
Change in short-term debt, net | (240,763) | (123,004) |
Dividends paid | (132) | (74,268) |
Proceeds from long-term debt and bonds issued | 48,073 | 0 |
Other | 9,003 | 7,426 |
Net cash provided by (used in) financing activities | (183,819) | (189,846) |
Net increase (decrease) in cash and cash equivalents | (21,073) | (23,475) |
Cash and cash equivalents at beginning of period | 28,878 | 42,494 |
Cash and cash equivalents at end of period | 7,805 | 19,019 |
Supplemental cash flow information: | ||
Cash payments for interest (net of capitalized interest) | 163,228 | 164,310 |
Cash payments (refunds) for income taxes | 0 | 0 |
Accounts payable for capital expenditures eliminated from cash flows | 54,419 | 47,151 |
Subsidiaries [Member] | ||
Operating activities: | ||
Net income (loss) | 193,746 | 237,406 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 234,710 | 218,787 |
Conservation amortization | 60,453 | 55,751 |
Deferred income taxes and tax credits, net | 94,590 | 108,589 |
Net unrealized (gain) loss on derivative instruments | 23,121 | (63,546) |
AFUDC – equity | (6,766) | (7,048) |
Funding of pension liability | (18,000) | (9,000) |
Regulatory Assets | (44,731) | (120,615) |
Other long-term assets and liabilities | (13,202) | 16,820 |
Change in certain current assets and liabilities: | ||
Accounts receivable and unbilled revenue | 205,327 | 184,700 |
Materials and supplies | 5,606 | (18,594) |
Fuel and gas inventory | 2,473 | 4,974 |
Prepayments and other | 13,900 | (2,738) |
Purchased gas adjustment | 13,765 | (1,027) |
Accounts payable | (49,478) | (64,132) |
Taxes payable | (9,296) | (13,230) |
Other | (6,542) | 1,567 |
Net cash provided by (used in) operating activities | 699,676 | 528,664 |
Investing activities: | ||
Construction expenditures - excluding equity AFUDC | (431,536) | (303,834) |
Restricted cash | 370 | (2,179) |
Other | (6,205) | (1,707) |
Net cash provided by (used in) investing activities | (437,371) | (307,720) |
Financing activities: | ||
Change in short-term debt, net | (240,763) | (123,004) |
Dividends paid | (51,574) | (128,674) |
Other | 9,003 | 7,456 |
Net cash provided by (used in) financing activities | (283,334) | (244,222) |
Net increase (decrease) in cash and cash equivalents | (21,029) | (23,278) |
Cash and cash equivalents at beginning of period | 28,481 | 41,856 |
Cash and cash equivalents at end of period | 7,452 | 18,578 |
Supplemental cash flow information: | ||
Cash payments for interest (net of capitalized interest) | 112,801 | 113,438 |
Cash payments (refunds) for income taxes | 0 | 0 |
Accounts payable for capital expenditures eliminated from cash flows | $ 54,419 | $ 47,151 |
Summary of Consolidation Policy
Summary of Consolidation Policy | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Summary of Consolidation Policy | Basis of Presentation Puget Energy is an energy services holding company that owns Puget Sound Energy (PSE). PSE is a public utility incorporated in the state of Washington that furnishes electric and natural gas services in a territory covering approximately 6,000 square miles, primarily in the Puget Sound region. Puget Energy also has a wholly-owned non-regulated subsidiary, named Puget LNG, LLC (Puget LNG). Puget LNG was formed on November 29, 2016, and has the sole purpose of owning, developing and financing the non-regulated activity of the Tacoma LNG facility, currently under construction. PSE and Puget LNG are considered related parties with similar ownership by Puget Energy. Therefore, capital and operating costs that occur under PSE and are allocated to Puget LNG are related party transactions by nature. As of June 30, 2017, Puget LNG has incurred $65.2 million in construction work in progress and operating costs related to Puget LNG’s portion of the Tacoma LNG facility. In 2009, Puget Holdings LLC (Puget Holdings), owned by a consortium of long-term infrastructure investors, completed its merger with Puget Energy (the merger). As a result of the merger, all of Puget Energy’s common stock is indirectly owned by Puget Holdings. The acquisition of Puget Energy was accounted for in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 805, “Business Combinations” (ASC 805), as of the date of the merger. ASC 805 requires the acquirer to recognize and measure identifiable assets acquired and liabilities assumed at fair value as of the merger date. The consolidated financial statements of Puget Energy reflect the accounts of Puget Energy and its subsidiaries. PSE’s consolidated financial statements include the accounts of PSE and its subsidiary. Puget Energy and PSE are collectively referred to herein as “the Company.” The consolidated financial statements are presented after elimination of all significant intercompany items and transactions. PSE’s consolidated financial statements continue to be accounted for on a historical basis and PSE’s financial statements do not include any ASC 805 purchase accounting adjustments. The preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Non-Utility Property, Plant and Equipment For PSE, the costs of other property, plant and equipment are stated at historical cost. Expenditures for refurbishment and improvements that significantly add to productive capacity or extend useful life of an asset are capitalized. Replacements of minor items are expensed on a current basis. Gains and losses on assets sold or retired, which were previously recorded in utility plant, are apportioned between regulatory assets/liabilities and earnings. However, gains and losses on assets sold or retired, not previously recorded in utility plant, are reflected in earnings. The Tacoma LNG facility will provide peak-shaving services to PSE’s natural gas customers, and will provide LNG as fuel to transportation customers, particularly in the marine market. The Tacoma LNG facility is expected to be operational in 2019. Pursuant to the Washington Commission’s order, Puget LNG will be allocated approximately 57.0% of the capital and operating costs of the Tacoma LNG facility and PSE will be allocated the remaining 43.0% of the capital and operating costs. For Puget Energy, the $65.1 million in construction work in progress related to Puget LNG’s portion of the Tacoma LNG facility is reported in the “Other property and investments” financial statement line item. For PSE, the construction work in progress of $57.4 million related to PSE’s portion of the Tacoma LNG facility is reported in the “Utility plant - Natural gas plant” line item, as PSE is a regulated entity. |
New Accounting Pronouncements
New Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Revenue Recognition In May 2014, the FASB issued ASU No. 2014-09, " Revenue from Contracts with Customers (Topic 606) ". ASU 2014-09 and the related amendments outline a single comprehensive model for use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The Accounting Standards Update (ASU) is based on the principle that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to fulfill a contract. In August 2015, the FASB issued ASU 2015-14, " Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date ", deferring the effective date for ASU 2014-09 to fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. In addition to the FASB's deferral decision, FASB provided reporting entities with an option to early adopt ASU 2014-09 using the original effective date. The Company plans to adopt ASU 2014-09 during the first quarter of fiscal year 2018 by recognizing the cumulative effect of initially applying the new standard as an adjustment to the opening balance of retained earnings, effective January 1, 2018. The Company initiated a steering committee and project team to evaluate the impact of this standard, update any policies and procedures that may be affected, and implement the new revenue recognition guidance. After a substantial evaluation of this standard, the Company does not anticipate significant impacts to its results of operations or on its consolidated financial statements. The Company is still waiting on the resolution of certain industry implementation issues to determine the full impact. The Company is anticipating additional future disclosures related to the implementation of the new standard. Lease Accounting In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)" . ASU 2016-02 requires lessees to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (i) a lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis; and (ii) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. This amendment is effective for financial statements issued for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Earlier adoption is permitted for all entities upon issuance. Reporting entities must apply a modified retrospective approach for the adoption of the new standard. The Company plans to adopt ASU 2016-02 during the first quarter of fiscal year 2019. At this time, the Company is still evaluating the impact this standard will have on its consolidated financial statements. Definition of a Business In January 2017, the FASB issued ASU 2017-01, " Business Combinations (Topic 805): Clarifying the Definition of a Business ". These amendments clarify the definition of a business. The amendments affect all companies and other reporting organizations that must determine whether they have acquired or sold a business. The amendments are intended to help companies and other organizations evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. This amendment is effective for fiscal years beginning after December 15, 2017. The Company plans to adopt ASU 2017-01 during the first quarter of fiscal year 2018 and is in the process of evaluating the potential impacts, if any, of this new guidance on its financial statements. Other Income In February 2017, the FASB issued ASU 2017-05, " Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets". The amendments clarify that a financial asset is within the scope of Subtopic 610-20 if it meets the definition of an in substance nonfinancial asset. The amendments also define the term, "in substance nonfinancial asset". The amendments clarify that an entity should identify each distinct nonfinancial asset or in substance nonfinancial asset promised to a counterparty and derecognize each asset when a counterparty obtains control of it. This amendment is effective for fiscal years beginning after December 15, 2017. The Company plans to adopt ASU 2017-05 during the first quarter of fiscal year 2018 and is in the process of evaluating the potential impacts, if any, of this new guidance on its financial statements. Retirement Benefits In March 2017, the FASB issued ASU 2017-07, " Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost ". The amendments require that an employer report the service cost component in the same line items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. Additionally, the line item used in the income statement to present the other components of net benefit cost must be disclosed. This amendment is effective for fiscal years beginning after December 15, 2017. Early adoption is permitted as of the beginning of an annual period for which financial statements (interim or annual) have not been issued or made available for issuance. The Company plans to adopt ASU 2017-07 during the first quarter of fiscal year 2018 and is in the process of evaluating the potential impacts, if any, of this new guidance on its financial statements. |
Accounting for Derivative Instr
Accounting for Derivative Instruments and Hedging Activities | 6 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Accounting for Derivative Instruments and Hedging Activities | Accounting for Derivative Instruments and Hedging Activities PSE employs various energy portfolio optimization strategies but is not in the business of assuming risk for the purpose of realizing speculative trading revenue. The nature of serving regulated electric customers with its portfolio of owned and contracted electric generation resources exposes PSE and its customers to some volumetric and commodity price risks within the sharing mechanism of the power cost adjustment (PCA). Therefore, wholesale market transactions and PSE's related hedging strategies are focused on reducing costs and risks where feasible, thus reducing volatility of costs in the portfolio. In order to manage its exposure to the variability in future cash flows for forecasted energy transactions, PSE utilizes a programmatic hedging strategy which extends out three years. PSE's energy risk portfolio management function monitors and manages these risks using analytical models and tools. In order to manage risks effectively, PSE enters into forward physical electric and natural gas purchase and sale agreements, fixed-for-floating swap contracts, and commodity call/put options. Currently, the Company does not apply cash flow hedge accounting and therefore records all mark-to-market gains or losses through earnings. The Company manages its interest rate risk through the issuance of mostly fixed-rate debt with varied maturities. The Company utilizes internal cash from operations, borrowings under its commercial paper program and its credit facilities to meet short-term funding needs. The Company may enter into swap instruments or other financial hedge instruments to manage the interest rate risk associated with these debts. As of June 30, 2017 , the Company did not have any outstanding interest rate swap instruments. The following table presents the volumes, fair values and locations of the Company's derivative instruments recorded on the balance sheets: Puget Energy and Puget Sound Energy At June 30, 2017 At December 31, 2016 (Dollars in Thousands) Volumes Assets 1 Liabilities 2 Volumes Assets 1 Liabilities 2 Interest rate swap derivatives 3 $ — $ — $ — $450 million $ — $ 141 Electric portfolio derivatives * 12,246 40,235 * 36,460 41,329 Natural gas derivatives (MMBtus) 4 310.6 million 8,337 22,033 336.4 million 26,619 19,101 Total derivative contracts ** $ 20,583 $ 62,268 ** $ 63,079 $ 60,571 Current ** $ 16,078 $ 44,031 ** $ 54,341 $ 44,310 Long-term ** 4,505 18,237 ** 8,738 16,261 Total derivative contracts ** $ 20,583 $ 62,268 ** $ 63,079 $ 60,571 _______________ 1 Balance sheet locations: Current and Long-term Unrealized gain on derivative instruments. 2 Balance sheet locations: Current and Long-term Unrealized loss on derivative instruments. 3 Interest rate swap contracts are only held at Puget Energy, and matured January 2017. 4 All fair value adjustments on derivatives relating to the natural gas business have been deferred in accordance with ASC 980, “Regulated Operations,” due to the purchased gas adjustment (PGA) mechanism. The net derivative asset or liability and offsetting regulatory liability or asset are related to contracts used to economically hedge the cost of physical gas purchased to serve natural gas customers. * Electric portfolio derivatives consist of electric generation fuel of 180.0 million One Million British Thermal Units (MMBtu) and purchased electricity of 1.9 million Megawatt Hours (MWhs) at June 30, 2017 , and 186.8 million MMBtus and 3.6 million MWhs at December 31, 2016 . ** Not meaningful and/or applicable. It is the Company's policy to record all derivative transactions on a gross basis at the contract level without offsetting assets or liabilities. The Company generally enters into transactions using the following master agreements: WSPP, Inc. (WSPP) agreements, which standardize physical power contracts; International Swaps and Derivatives Association (ISDA) agreements, which standardize financial natural gas and electric contracts; and North American Energy Standards Board (NAESB) agreements, which standardize physical natural gas contracts. The Company believes that such agreements reduce credit risk exposure because such agreements provide for the netting and offsetting of monthly payments as well as the right of set-off in the event of counterparty default. The set-off provision can be used as a final settlement of accounts which extinguishes the mutual debts owed between the parties in exchange for a new net amount. For further details regarding the fair value of derivative instruments, see Note 4, "Fair Value Measurements" to the consolidated financial statements. The following tables present the potential effect of netting arrangements, including rights of set-off associated with the Company's derivative assets and liabilities: Puget Energy and Puget Sound Energy At June 30, 2017 Gross Amount Recognized in the Statement of Financial Position 1 Gross Amounts Offset in the Statement of Financial Position Net of Amounts Presented in the Statement of Financial Position Gross Amounts Not Offset in the Statement of Financial Position (Dollars in Thousands) Commodity Contracts Cash Collateral Received/Posted Net Amount Assets: Energy derivative contracts $ 20,583 $ — $ 20,583 $ (16,452 ) $ — $ 4,131 Liabilities: Energy derivative contracts 62,268 — 62,268 (16,452 ) (154 ) 45,662 Puget Energy and Puget Sound Energy At December 31, 2016 Gross Amount Recognized in the Statement of Financial Position 1 Gross Amounts Offset in the Statement of Financial Position Net of Amounts Presented in the Statement of Financial Position Gross Amounts Not Offset in the Statement of Financial Position (Dollars in Thousands) Commodity Contracts Cash Collateral Received/Posted Net Amount Assets: Energy derivative contracts $ 63,079 $ — $ 63,079 $ (42,858 ) $ — $ 20,221 Liabilities: Energy derivative contracts 60,430 — 60,430 (42,858 ) — 17,572 Interest rate swaps 2 141 — 141 — — 141 _______________ 1 All derivative contract deals are executed under ISDA, NAESB and WSPP master netting agreements with right of set-off. 2 Interest rate swap contracts are only held at Puget Energy, and matured January 2017. The following table presents the effect and locations of the realized and unrealized gains (losses) of the Company's derivatives recorded on the statements of income: Puget Energy and Three Months Ended June 30, Six Months Ended (Dollars in Thousands) Location 2017 2016 2017 2016 Interest rate contracts 1 : Non-hedged interest rate swap (expense) income $ — $ (359 ) $ 28 $ (1,213 ) Gas for Power Derivatives: Unrealized Unrealized gain (loss) on derivative instruments, net (5,746 ) 45,317 (21,882 ) 50,830 Realized Electric generation fuel (2,822 ) (12,327 ) (8,020 ) (33,010 ) Power Derivatives: Unrealized Unrealized gain (loss) on derivative instruments, net 1,912 1,407 (1,239 ) 12,716 Realized Purchased electricity (3,923 ) (3,576 ) (10,078 ) (14,795 ) Total gain (loss) recognized in income on derivatives $ (10,579 ) $ 30,462 $ (41,191 ) $ 14,528 _______________ 1 Interest rate swap contracts are only held at Puget Energy, and matured January 2017. . The Company is exposed to credit risk primarily through buying and selling electricity and natural gas to serve its customers. Credit risk is the potential loss resulting from a counterparty's non-performance under an agreement. The Company manages credit risk with policies and procedures for, among other things, counterparty credit analysis, exposure measurement, and exposure monitoring and mitigation. The Company monitors counterparties for significant swings in credit default swap rates, credit rating changes by external rating agencies, ownership changes or financial distress. Where deemed appropriate, the Company may request collateral or other security from its counterparties to mitigate potential credit default losses. Criteria employed in this decision include, among other things, the perceived creditworthiness of the counterparty and the expected credit exposure. It is possible that volatility in energy commodity prices could cause the Company to have material credit risk exposure with one or more counterparties. If such counterparties fail to perform their obligations under one or more agreements, the Company could suffer a material financial loss. However, as of June 30, 2017 , approximately 97.7% of the Company's energy portfolio exposure, excluding normal purchase normal sale (NPNS) transactions, was with counterparties that are rated at least investment grade by rating agencies and 2.3% are either rated below investment grade or not rated by rating agencies. The Company assesses credit risk internally for counterparties that are not rated by the major rating agencies. The Company computes credit reserves at a master agreement level by counterparty. The Company considers external credit ratings and market factors in the determination of reserves, such as credit default swaps and bond spreads. The Company recognizes that external ratings may not always reflect how a market participant perceives a counterparty's risk of default. The Company uses both default factors published by Standard & Poor's and factors derived through analysis of market risk which reflect the application of an industry standard recovery rate. The Company selects a default factor by counterparty at an aggregate master agreement level based on a weighted average default tenor for that counterparty's deals. The default tenor is determined by weighting the fair value and contract tenors for all deals for each counterparty to derive an average value. The default factor used is dependent upon whether the counterparty is in a net asset or a net liability position after applying the master agreement levels. The Company applies the counterparty's default factor to compute credit reserves for counterparties that are in a net asset position. The Company calculates a non-performance risk on its derivative liabilities by using its estimated incremental borrowing rate over the risk-free rate. Credit reserves are netted against the unrealized gain (loss) positions. As of June 30, 2017 , the Company was in a net liability position with the majority of its counterparties, so the default factors of counterparties did not have a significant impact on reserves for the period. The majority of the Company's derivative contracts are with financial institutions and other utilities operating within the Western Electricity Coordinating Council. In March 2017, PSE began transacting power futures contracts on the Intercontinental Exchange (ICE) platform. Execution of these contracts on ICE requires the daily posting of margin calls as collateral through a futures and clearing agent. As of June 30, 2017 , PSE had cash posted as collateral of $0.5 million related to contracts executed on this platform. As additional contracts are executed on this exchange, the amount of collateral to be posted will increase, subject to PSE’s established limit. PSE also has a $1.0 million letter of credit posted as collateral as a condition of transacting on a physical energy exchange and clearing house in Canada. PSE did not trigger any collateral requirements with any of its counterparties during the six months ended June 30, 2017 nor were any of PSE's counterparties required to post collateral resulting from credit rating downgrades. The table below presents the fair value of the overall contractual contingent liability positions for the Company's derivative activity at June 30, 2017 : Puget Energy and Puget Sound Energy (Dollars in Thousands) At June 30, 2017 At December 31, 2016 Fair Value 1 Posted Contingent Fair Value 1 Posted Contingent Contingent Feature Liability Collateral Collateral Liability Collateral Collateral Credit rating 2 $ 7,076 $ — $ 7,076 $ 4,894 $ — $ 4,894 Requested credit for adequate assurance 24,407 — — 7,427 — — Forward value of contract 3 171 530 — 507 — — Total $ 31,654 $ 530 $ 7,076 $ 12,828 $ — $ 4,894 _______________ 1 Represents the derivative fair value of contracts with contingent features for counterparties in net derivative liability positions. Excludes NPNS, accounts payable and accounts receivable. 2 Failure by PSE to maintain an investment grade credit rating from each of the major credit rating agencies provides counterparties a contractual right to demand collateral. 3 Collateral requirements may vary, based on changes in the forward value of underlying transactions relative to contractually defined collateral thresholds. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements ASC 820 established a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy categorizes the inputs into three levels with the highest priority given to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority given to unobservable inputs (Level 3 measurement). The three levels of the fair value hierarchy are as follows: Level 1 - Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Level 1 primarily consists of financial instruments such as exchange-traded derivatives and listed equities. Equity securities that are also classified as cash equivalents are considered Level 1 if there are unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 - Pricing inputs are other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 2 includes those financial instruments that are valued using models or other valuation methodologies. Instruments in this category include non-exchange-traded derivatives such as over-the-counter forwards and options. Level 3 - Pricing inputs include significant inputs that have little or no observability as of the reporting date. These inputs may be used with internally developed methodologies that result in management's best estimate of fair value. Financial assets and liabilities measured at fair value are classified in their entirety in the appropriate fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The Company's assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy. The Company primarily determines fair value measurements classified as Level 2 or Level 3 using a combination of the income and market valuation approaches. The process of determining the fair values is the responsibility of the derivative accounting department which reports to the Controller and Principal Accounting Officer. Inputs used to estimate the fair value of forwards, swaps and options include market-price curves, contract terms and prices, credit-risk adjustments, and discount factors. Additionally, for options, the Black-Scholes option valuation model and implied market volatility curves are used. Inputs used to estimate fair value in industry-standard models are categorized as Level 2 inputs as substantially all assumptions and inputs are observable in active markets throughout the full term of the instruments. On a daily basis, the Company obtains quoted forward prices for the electric and natural gas markets from an independent external pricing service. The Company considers its electric and natural gas contracts as Level 2 derivative instruments as such contracts are commonly traded as over-the-counter forwards with indirectly observable price quotes. However, certain energy derivative instruments with maturity dates falling outside the range of observable price quotes are classified as Level 3 in the fair value hierarchy. Management's assessment is based on the trading activity in real-time and forward electric and natural gas markets. Each quarter, the Company confirms the validity of pricing-service quoted prices used to value Level 2 commodity contracts with the actual prices of commodity contracts entered into during the most recent quarter. Assets and Liabilities with Estimated Fair Value The carrying values of cash and cash equivalents, restricted cash, and short-term debt as reported on the balance sheet are reasonable estimates of their fair value due to the short term nature of these instruments and are classified as Level 1 in the fair value hierarchy. The carrying value of other investments totaling $50.2 million and $49.1 million at June 30, 2017 and December 31, 2016 , respectively, are included in other property and investments on the balance sheet. These values are also reasonable estimates of their fair value and classified as Level 2 in the fair value hierarchy as they are valued based on market rates for similar transactions. The fair value of the junior subordinated and long-term notes was estimated using the discounted cash flow method with the U.S. Treasury yields and the Company's credit spreads as inputs, interpolating to the maturity date of each issue. The carrying values and estimated fair values were as follows: Puget Energy At June 30, 2017 At December 31, 2016 (Dollars in Thousands) Level Carrying Value Fair Value Carrying Value Fair Value Liabilities: Junior subordinated notes 2 $ 250,000 $ 236,977 $ 250,000 $ 210,261 Long-term debt (fixed-rate), net of discount 1 2 5,098,506 6,444,404 5,091,593 6,337,287 Long-term debt (variable-rate) 2 60,554 60,554 12,480 12,480 Total liabilities $ 5,409,060 $ 6,741,935 $ 5,354,073 $ 6,560,028 Puget Sound Energy At June 30, 2017 At December 31, 2016 (Dollars in Thousands) Level Carrying Fair Carrying Fair Liabilities: Junior subordinated notes 2 $ 250,000 $ 236,977 $ 250,000 $ 210,261 Long-term debt (fixed-rate), net of discount 2 2 3,498,603 4,465,055 3,497,298 4,360,783 Total liabilities $ 3,748,603 $ 4,702,032 $ 3,747,298 $ 4,571,044 _______________ 1 The carrying value includes debt issuances costs of $30.4 million , and $33.0 million for June 30, 2017 and December 31, 2016 , respectively, which are not included in fair value. 2 The carrying value includes debt issuances costs of $25.9 million , and $27.2 million for June 30, 2017 and December 31, 2016 , respectively, which are not included in fair value. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table presents the Company's financial assets and liabilities by level, within the fair value hierarchy, that were accounted for at fair value on a recurring basis: Puget Energy and Fair Value Fair Value Puget Sound Energy At June 30, 2017 At December 31, 2016 (Dollars in Thousands) Level 2 Level 3 Total Level 2 Level 3 Total Assets: Electric derivative instruments $ 7,793 $ 4,453 $ 12,246 $ 30,666 $ 5,794 $ 36,460 Natural gas derivative instruments 4,737 3,600 8,337 23,316 3,303 26,619 Total assets $ 12,530 $ 8,053 $ 20,583 $ 53,982 $ 9,097 $ 63,079 Liabilities: Interest rate derivative instruments 1 $ — $ — $ — $ 141 $ — $ 141 Electric derivative instruments 36,425 3,810 40,235 36,507 4,822 41,329 Natural gas derivative instruments 19,889 2,144 22,033 16,423 2,678 19,101 Total liabilities $ 56,314 $ 5,954 $ 62,268 $ 53,071 $ 7,500 $ 60,571 _______________ 1 Interest rate derivative instruments are only held at Puget Energy, and matured January 2017. The following table presents the Company's reconciliation of the changes in the fair value of Level 3 derivatives in the fair value hierarchy: Puget Energy and Puget Sound Energy Three Months Ended June 30, (Dollars in Thousands) 2017 2016 Level 3 Roll-Forward Net Asset/(Liability) Electric Natural Gas Total Electric Natural Gas Total Balance at beginning of period $ 3,788 $ 1,752 $ 5,540 $ 1,602 $ (1,622 ) $ (20 ) Changes during period: Realized and unrealized energy derivatives: Included in earnings 1 339 — 339 (1,954 ) — (1,954 ) Included in regulatory assets / liabilities — 1,124 1,124 — 1,562 1,562 Settlements (2,508 ) (1,974 ) (4,482 ) (494 ) (879 ) (1,373 ) Transferred into Level 3 — — — — — — Transferred out of Level 3 (976 ) 554 (422 ) (2,216 ) 455 (1,761 ) Balance at end of period $ 643 $ 1,456 $ 2,099 $ (3,062 ) $ (484 ) $ (3,546 ) The following table presents the Company's reconciliation of the changes in the fair value of Level 3 derivatives in the fair value hierarchy: Puget Energy and Puget Sound Energy Six Months Ended (Dollars in Thousands) 2017 2016 Level 3 Roll-Forward Net Asset/(Liability) Electric Natural Gas Total Electric Natural Gas Total Balance at beginning of period $ 972 $ 625 $ 1,597 $ (7,345 ) $ (2,383 ) $ (9,728 ) Changes during period: Realized and unrealized energy derivatives: Included in earnings 2 1,045 — 1,045 2,654 — 2,654 Included in regulatory assets / liabilities — 3,582 3,582 — 3,082 3,082 Settlements (3,838 ) (3,304 ) (7,142 ) (554 ) (1,816 ) (2,370 ) Transferred into Level 3 2,191 (553 ) 1,638 (2,080 ) — (2,080 ) Transferred out of Level 3 273 1,106 1,379 4,263 633 4,896 Balance at end of period $ 643 $ 1,456 $ 2,099 $ (3,062 ) $ (484 ) $ (3,546 ) ______________ 1 Income Statement locations: Unrealized (gain) loss on derivative instruments, net. Amounts include unrealized gains (losses) on derivatives still held in position as of the reporting date for electric derivatives of $0.5 million and $(2.5) million for the three months ended June 30, 2017 and 2016 , respectively . 2 Income Statement locations: Unrealized (gain) loss on derivative instruments, net. Amounts include unrealized gains (losses) on derivatives still held in position as of the reporting date for electric derivatives of $0.7 million and $3.1 million for the six months ended June 30, 2017 and 2016 , respectively. Realized gains and losses on energy derivatives for Level 3 recurring items are included in energy costs in the Company's consolidated statements of income under purchased electricity, electric generation fuel or purchased natural gas when settled. Unrealized gains and losses on energy derivatives for Level 3 recurring items are included in net unrealized (gain) loss on derivative instruments in the Company's consolidated statements of income. In order to determine which assets and liabilities are classified as Level 3, the Company receives market data from its independent external pricing service defining the tenor of observable market quotes. To the extent any of the Company's commodity contracts extend beyond what is considered observable, as defined by its independent pricing service, the contracts are classified as Level 3. The actual tenor of what the independent pricing service defines as observable is subject to change depending on market conditions. Therefore, as the market changes, the same contract may be designated Level 3 one month and Level 2 the next and vice versa. The changes of fair value classification into or out of Level 3 are recognized each month and reported in the Level 3 Roll-Forward tables. The Company did not have any transfers between Level 1 and Level 2 during the reported periods. The Company does periodically transact at locations or market price points that are illiquid or for which no prices are available from the independent pricing service. In such circumstances, the Company uses a more liquid price point and performs a 15-month regression against the illiquid locations to serve as a proxy for forward market prices. Such transactions are classified as Level 3. The Company does not use internally developed models to make adjustments to significant unobservable pricing inputs. The only significant unobservable input into the fair value measurement of the Company's Level 3 assets and liabilities is the forward price for electric and natural gas contracts. The following table presents the forward price ranges for the Company's Level 3 commodity contracts as of June 30, 2017 : Puget Energy and Fair Value Range (Dollars in Thousands) Assets 1 Liabilities 1 Valuation Technique Unobservable Input Low High Weighted Average Electric $ 4,453 $ 3,810 Discounted cash flow Power prices $13.00 per MWh $32.65 per MWh $24.41 per MWh Natural gas $ 3,600 $ 2,144 Discounted cash flow Natural gas prices $1.47 per MMBtu $3.14 per MMBtu $2.41 per MMBtu _______________ 1 The valuation techniques, unobservable inputs and ranges are the same for asset and liability positions. The following table presents the forward price ranges for the Company's Level 3 commodity contracts as of December 31, 2016 : Puget Energy and Fair Value Range (Dollars in Thousands) Assets 1 Liabilities 1 Valuation Technique Unobservable Input Low High Weighted Average Electric $ 5,794 $ 4,822 Discounted cash flow Power prices $11.86 per MWh $33.52 per MWh $27.61 per MWh Natural gas $ 3,303 $ 2,678 Discounted cash flow Natural gas prices $2.00 per MMBtu $3.24 per MMBtu $2.42 per MMBtu _______________ 1 The valuation techniques, unobservable inputs and ranges are the same for asset and liability positions. The significant unobservable inputs listed above would have a direct impact on the fair values of the above instruments if they were adjusted. Consequently, significant increases or decreases in the forward prices of electricity or natural gas in isolation would result in a significantly higher or lower fair value for Level 3 assets and liabilities. Generally, interrelationships exist between market prices of natural gas and power. As such, an increase in natural gas pricing would potentially have a similar impact on forward power markets. At June 30, 2017 and December 31, 2016 , a hypothetical 10% increase or decrease in market prices of natural gas and electricity would change the fair value of the Company's derivative portfolio, classified as Level 3 within the fair value hierarchy, by $1.0 million and $0.2 million , respectively. Long-Lived Assets Measured at Fair Value on a Nonrecurring Basis Puget Energy records the fair value of its intangible assets in accordance with ASC 360, “Property, Plant, and Equipment,” (ASC 360). The fair value assigned to the power contracts was determined using an income approach comparing the contract rate to the market rate for power over the remaining period of the contracts incorporating non-performance risk. Management also incorporated certain assumptions related to quantities and market presentation that it believes market participants would make in the valuation. The fair value of the power contracts is amortized as the contracts settle. ASC 360 requires long-lived assets to be tested for impairment on an annual basis, and upon the occurrence of any events or circumstances that would be more likely than not to reduce the fair value of the long-lived assets below their carrying value. One such triggering event is a significant decrease in the forward market prices of power. As of June 30, 2017 , Puget Energy completed valuation and impairment testing of its power purchase contracts classified as intangible assets and found no impairment. However, as of March 31, 2017 , due to significant decreases in forward power prices of 14.1% for years 2017-2022, and 24.4% for years 2023-2035 from December 31, 2016 , the following impairments totaling $80.3 million were recorded to the Company's intangible asset contracts, with corresponding reductions to the regulatory liability as follows: Puget Energy (Dollars in Thousands) Valuation Date Contract Name Carrying Value Fair Value Write Down March 31, 2017 Wells Hydro $ 14,879 $ 13,067 $ 1,812 Rocky Reach 235,331 159,818 75,513 Priest Rapids RP 5,665 2,657 3,008 Total impairment $ 255,875 $ 175,542 $ 80,333 The valuations were measured using a discounted cash flow, income-based valuation methodology. Significant inputs included forward electricity prices and power contract pricing which provided future net cash flow estimates classified as Level 3 within the fair value hierarchy. A less significant input is the discount rate reflective of PSE's cost of capital used in the valuation. The following table presents the significant unobservable inputs used in estimating the impaired long-term power purchase contracts' fair value: Puget Energy Valuation Date Unobservable Input Low High Average March 31, 2017 Wells Hydro Power prices $8.76 per MWh $26.70 per MWh $20.86 per MWh Power contract costs (in thousands) 3,965 per qtr. 4,223 per qtr. 4,051 per qtr. Rocky Reach Power prices $8.53 per MWh $48.21 per MWh $27.69 per MWh Power contract costs (in thousands) 5,827 per qtr. 6,780 per qtr. 6,150 per qtr. Priest Rapids RP Power prices $13.70 per MWh $29.38 per MWh $23.14 per MWh Power contract costs (in thousands) 620 per year 4,022 per year 2,306 per year |
Retirement Benefits
Retirement Benefits | 6 Months Ended |
Jun. 30, 2017 | |
Retirement Benefits [Abstract] | |
Retirement Benefits | Retirement Benefits PSE has a defined benefit pension plan (Qualified Pension Benefits) covering the largest portion of PSE employees. Pension benefits earned are a function of age, salary, years of service and, in the case of employees in the cash balance formula plan, the applicable annual interest crediting rates. Starting January 1, 2014, all non-represented and United Association of Journeymen and Apprentices of the Plumbing and Pipefitting Industry (UA) represented employees, along with International Brotherhood of Electrical Workers (IBEW) represented employees hired on or after December 12, 2014 who elect to accumulate the Company contribution in the cash balance formula portion of the pension plan, will receive annual pay credits of 4% each year. They will also receive interest credits like other participants in the cash balance pension formula of the pension plan, which are at least 1% per quarter. When an employee with a vested cash balance formula benefit leaves PSE, he or she will have annuity and lump sum options for distribution. Those who select the lump sum option will receive their current cash balance amount. PSE also maintains a non-qualified Supplemental Executive Retirement Plan (SERP) for its key senior management employees. In addition to providing pension benefits, PSE provides access to group medical care coverage and legacy life insurance benefits (Other Benefits) for certain retired employees. These benefits are provided principally through an insurance company. The group medical insurance premiums, paid primarily by retirees, are based on the benefits provided during the prior year. Puget Energy records purchase accounting adjustments associated with the re-measurement of the retirement plans. The following tables summarize the Company’s net periodic benefit cost for the three and six months ended June 30, 2017 and 2016 : Puget Energy Qualified SERP Other Three Months Ended June 30, (Dollars in Thousands) 2017 2016 2017 2016 2017 2016 Components of net periodic benefit cost: Service cost $ 5,023 $ 4,605 $ 228 $ 271 $ 16 $ 24 Interest cost 7,088 7,226 571 582 130 157 Expected return on plan assets (11,942 ) (11,687 ) — — (116 ) (111 ) Amortization of prior service cost (495 ) (495 ) 11 11 — — Amortization of net loss (gain) — — 269 228 (88 ) (29 ) Net periodic benefit cost $ (326 ) $ (351 ) $ 1,079 $ 1,092 $ (58 ) $ 41 Puget Energy Qualified SERP Other Six Months Ended (Dollars in Thousands) 2017 2016 2017 2016 2017 2016 Components of net periodic benefit cost: Service cost $ 10,040 $ 9,209 $ 457 $ 542 $ 36 $ 49 Interest cost 14,186 14,452 1,143 1,163 250 313 Expected return on plan assets (23,892 ) (23,374 ) — — (231 ) (222 ) Amortization of prior service cost (990 ) (990 ) 22 22 — — Amortization of net loss (gain) — — 538 456 (201 ) (58 ) Net periodic benefit cost $ (656 ) $ (703 ) $ 2,160 $ 2,183 $ (146 ) $ 82 Puget Sound Energy Qualified Pension Benefits SERP Pension Benefits Other Benefits Three Months Ended June 30, (Dollars in Thousands) 2017 2016 2017 2016 2017 2016 Components of net periodic benefit cost: Service cost $ 5,023 $ 4,605 $ 228 $ 271 $ 16 $ 24 Interest cost 7,088 7,226 571 582 130 157 Expected return on plan assets (11,963 ) (11,736 ) — — (116 ) (111 ) Amortization of prior service cost (393 ) (393 ) 11 11 — — Amortization of net loss (gain) 3,095 3,740 392 333 (148 ) (90 ) Net periodic benefit cost $ 2,850 $ 3,442 $ 1,202 $ 1,197 $ (118 ) $ (20 ) Puget Sound Energy Qualified SERP Other Six Months Ended (Dollars in Thousands) 2017 2016 2017 2016 2017 2016 Components of net periodic benefit cost: Service cost $ 10,040 $ 9,209 $ 457 $ 542 $ 36 $ 49 Interest cost 14,186 14,452 1,143 1,163 250 313 Expected return on plan assets (23,931 ) (23,472 ) — — (231 ) (222 ) Amortization of prior service cost (787 ) (786 ) 22 22 — — Amortization of net loss (gain) 6,524 7,480 783 666 (320 ) (180 ) Net periodic benefit cost $ 6,032 $ 6,883 $ 2,405 $ 2,393 $ (265 ) $ (40 ) The following table summarizes the Company’s change in benefit obligation for the periods ended June 30, 2017 and December 31, 2016 : Puget Energy and Puget Sound Energy Qualified Pension Benefits SERP Pension Benefits Other Benefits Six Months Ended Year Six Months Ended Year Six Months Ended Year (Dollars in Thousands) June 30, 2017 December 31, June 30, December 31, June 30, December 31, Change in benefit obligation: Benefit obligation at beginning of period $ 652,607 $ 643,088 $ 51,734 $ 51,279 $ 11,194 $ 13,946 Service cost 10,040 18,913 457 1,085 36 93 Interest cost 14,186 28,689 1,143 2,325 250 533 Actuarial loss (gain) (253 ) 1,545 — 106 373 (2,262 ) Benefits paid (20,894 ) (38,730 ) (955 ) (3,061 ) (572 ) (1,264 ) Medicare part D subsidy received — — — — 100 148 Administrative Expense — (898 ) — — — — Benefit obligation at end of period $ 655,686 $ 652,607 $ 52,379 $ 51,734 $ 11,381 $ 11,194 The aggregate expected contributions by the Company to fund the qualified pension plan, SERP and the other postretirement plans for the year ending December 31, 2017 are expected to be at least $18.0 million , $1.9 million and $0.3 million , respectively. During the three months ended June 30, 2017 , the Company contributed $9.0 million , $0.5 million and $0.1 million to fund the qualified pension plan, SERP and other postretirement plan, respectively. During the six months ended June 30, 2017 , the Company contributed $18.0 million , $1.0 million and $0.2 million to fund the qualified pension plan, SERP and other postretirement plan, respectively. |
Regulation and Rates
Regulation and Rates | 6 Months Ended |
Jun. 30, 2017 | |
Regulation and Rates [Abstract] | |
Regulation and Rates | Regulation and Rates 2013 Expedited Rate Filing, Decoupling and Centralia Decision On June 25, 2013, the Washington Commission issued final orders resolving the amended decoupling petition, the Expedited Rate Filing (ERF) and the Petition for Reconsideration (related to the TransAlta Centralia power purchase agreement). Order No.7 in the ERF/decoupling proceeding approved PSE's ERF filing with a small change to its cost of capital from 7.80% to 7.77% to update long-term debt costs and a capital structure that included 48.0% common equity with a return on equity (ROE) of 9.8% . This order also approved the property tax tracker discussed below and approved the amended decoupling and rate plan filing with the further condition that PSE and the customers will share 50.0% each in earnings in excess of the 7.77% authorized rate of return. In addition, the K-Factor (rate plan) increase allowed decoupling revenue per customer for the recovery of delivery system costs to subsequently increase by 3.0% for the electric customers and 2.2% for the natural gas customers on January 1 of each year, until the conclusion of PSE's next general rate case (GRC) which was filed January 13, 2017, as discussed below. In the rate plan, increases are subject to a cap of 3.0% of the total revenue for customers. General Rate Case Filing On January 13, 2017, PSE filed its GRC with the Washington Commission which proposed a weighted cost of capital of 7.74% , or 6.69% after-tax, and a capital structure of 48.5% in common equity with a return on equity of 9.8% . The requested combined electric tariff changes were a net increase of $86.3 million , or 4.1% , annually. The requested combined natural gas tariff changes were a net decrease of $22.3 million , or 2.4% , annually. The filing was subsequently suspended, which means that the final rates granted in the proceeding will go into effect no later than December 13, 2017. PSE filed a supplemental filing in the GRC on April 3, 2017, which among other things provided updates to power costs. The requested combined electric tariff changes based on the updated supplemental filing would result in a net increase of $67.9 million , or 3.2% , annually. The requested combined natural gas tariff changes based on the updated supplemental filing would result in a net decrease of $29.3 million , or 3.2% , annually. PSE’s GRC filing included the required plan for Colstrip Units 1 and 2 closures, see Item 3, "Legal Proceedings" in the Company's Annual Report on the Form 10-K for the year ended December 31, 2016. Additionally, PSE’s filing contains requests for two new mechanisms to address regulatory lag. PSE has requested procedures for an ERF that can be used to update PSE’s delivery revenues on an expedited basis following a GRC proceeding. PSE also requested approval to establish an electric cost recovery mechanism (CRM), similar to its existing natural gas CRM, which would allow PSE to obtain accelerated cost recovery on specified electric reliability projects. Decoupling Filings While fluctuations in weather conditions will continue to affect PSE's billed revenue and energy supply expenses from month to month, PSE's decoupling mechanisms are expected to mitigate the impact of weather on operating revenue and net income. The Washington Commission has allowed PSE to record a monthly adjustment to its electric and natural gas operating revenues related to electric transmission and distribution, natural gas operations and general administrative costs from most residential, commercial and industrial customers to mitigate the effects of abnormal weather, conservation impacts and changes in usage patterns per customer. As a result, these electric and natural gas revenues will be recovered on a per customer basis regardless of actual consumption levels. PSE's energy supply costs, which are part of the PCA and PGA mechanisms, are not included in the decoupling mechanism. The revenue recorded under the decoupling mechanisms will be affected by customer growth and not actual consumption. PSE will recover or refund the difference between allowed decoupling revenue and the corresponding actual revenue to affected customers over a 12-month period beginning in May following the calendar year end. The decoupling mechanism will end on December 31, 2017, unless the requested continuation of the mechanism is approved in PSE's 2017 GRC. PSE's decoupling mechanism over and under collections will still be collectible or refundable after December 31, 2017, even if the decoupling mechanism is not extended. The Washington Commission approved the following PSE requests to change rates under its electric and natural gas decoupling mechanisms: Effective Date Average Percentage Increase (Decrease) in Rates Increase (Decrease) in Revenue (Dollars in Millions) 1 Electric: May 1, 2017 2.0% $41.9 May 1, 2016 1.0 20.8 Natural Gas: May 1, 2017 2.4% $22.4 May 1, 2016 2.8 25.4 _______________ 1 The increase in revenue is net of reductions from excess earnings of $11.4 million for electric and $2.1 million for natural gas in 2017, and $11.9 million for electric and $5.5 million for natural gas in 2016. As noted earlier, the Company is also limited to a 3.0% annual decoupling related cap on increases in total revenue. This limitation has been triggered as follows for natural gas with no impacts to electric: Effective Date Accrued Through Deferrals not Included in Annual Rate Increases (Dollars in Millions) Natural Gas: 2016 $47.4 2015 28.7 Existing deferrals may be included in customer rates beginning in May 2018, subject to subsequent application of the earnings test and the 3.0% cap on decoupling related rate increases. Electric Regulation and Rates Storm Damage Deferral Accounting The Washington Commission issued a GRC order that defined deferrable catastrophic/extraordinary losses and provided that costs in excess of $8.0 million annually may be deferred for qualifying storm damage costs that meet the modified Institute of Electrical and Electronics Engineers outage criteria for a system average interruption duration index. For the six months ended June 30, 2017 and June 30, 2016 , PSE incurred $20.8 million and $15.6 million , respectively, in storm-related electric transmission and distribution system restoration costs, of which $12.1 million was deferred to a regulatory asset in 2017 and $6.5 million in 2016 . Power Cost Adjustment Mechanism PSE currently has a PCA mechanism that provides for the deferral of power costs that vary from the “power cost baseline” level of power costs. The “power cost baseline” levels are set, in part, based on normalized assumptions about weather and hydroelectric conditions. Excess power costs or savings are apportioned between PSE and its customers pursuant to the graduated scale set forth in the PCA mechanism and will trigger a surcharge or refund when the cumulative deferral trigger is reached. The graduated scale that was applicable through December 31, 2016 was as follows: Annual Power Cost Variability Company’s Share Customers' Share +/- $20 million 100% —% +/- $20 million - $40 million 50 50 +/- $40 million - $120 million 10 90 +/- $120 + million 5 95 On August 7, 2015, the Washington Commission issued an order approving the settlement proposing changes to the PCA mechanism. The settlement agreement took effect January 1, 2017 and applies the following graduated scale: Company's Share Customers' Share Annual Power Cost Variability Over Under Over Under Over or Under Collected by up to $17 million 100% 100% —% —% Over or Under Collected by between $17 million - $40 million 35 50 65 50 Over or Under Collected beyond $40 + million 10 10 90 90 The settlement also resulted in the following changes to the PCA mechanism: • Reduction to the cumulative deferral trigger for surcharge or refund from $30.0 million to $20.0 million ; • Removal of fixed production costs from the PCA mechanism and placing them in the decoupling mechanism, assuming the decoupling mechanism continues after its review in the 2017 GRC. If decoupling was not to continue, those fixed production costs would be treated the same as other non-PCA costs unless permission to treat them in another manner is obtained from the Washington Commission. These fixed production costs include: (i) return and depreciation/amortization on fixed production assets and regulatory assets and liabilities; (ii) return, depreciation, transmission expense and revenues on specific transmission assets; and (iii) hydroelectric, other production and other power related expenses and O&M costs; • Suspension of the requirement that a GRC must be filed within three months after rates are approved in a Power Cost Only Rate Case (PCORC); • Agreement, for a five-year period, that PSE will not file a GRC or PCORC within six months of the date rates go into effect for a PCORC filing; and • Establishment of a five-year moratorium on changes to the PCA. For the six months ended June 30, 2017 , PSE under recovered its power costs by $8.6 million of which no amount was apportioned to customers. This compares to an under recovery of power costs of $3.1 million for the six months ended June 30, 2016 of which no amounts were apportioned to customers. Load increased in 2017 compared to 2016 which was offset by a decrease in the total baseline rate and an increase in costs. Additionally, this change was due to the new 2017 mechanism which fixed production costs, other costs and adjustments are no longer included. The mechanism is now comparing variable PCA costs using the variable costs portion of the baseline rate. The fixed costs will become part of the decoupling mechanism, assuming the decoupling mechanism continues after its review in the GRC, but until then the fixed costs are being deferred using the fixed cost portion of the baseline rate. Electric Conservation Rider The electric conservation rider collects revenue to cover the costs incurred in providing services and programs for conservation. Rates change annually on May 1 to collect the annual budget that started the prior January and to true-up for actual compared to forecast conservation expenditures from the prior year as well as actual load being different than the forecasted load set in rates. The following table sets forth conservation rider rate adjustments approved by the Washington Commission and the corresponding expected annual impact on PSE’s revenue based on the effective dates: Effective Date Average Increase (Decrease) in Revenue (Dollars in Millions) May 1, 2017 0.7% $16.5 May 1, 2016 (0.5) (11.7) Electric Property Tax Tracker Mechanism The purpose of the property tax tracker mechanism is to pass through the cost of all property taxes incurred by the Company. The mechanism removes property taxes from general rates and includes those costs for recovery in an adjusting tariff rate. After the implementation, the mechanism acts as a tracker rate schedule and collects the total amount of property taxes paid. The tracker will be adjusted on May 1 each year based on that year's assessed property taxes and true-ups to the rate from the prior year. The following table sets forth property tax tracker mechanism rate adjustments approved by the Washington Commission and the corresponding expected annual impact on PSE’s revenue based on the effective dates: Effective Date Average Percentage Increase (Decrease) in Rates Increase (Decrease) in Revenue (Dollars in Millions) May 1, 2017 (0.04)% $(0.9) May 1, 2016 0.3 5.7 Federal Incentive Tracker Tariff The Federal Incentive Tracker Tariff passes through to customers the benefits associated with realized treasury grants and Production Tax Credits. The filing results in a credit back to customers for pass-back of treasury grant amortization and pass-through of interest and any related true-ups. The filing is adjusted annually for new Federal benefits, actual versus forecast interest and to true-up for actual load being different than the forecasted load set in rates. The following table sets forth the Federal Incentive Tracker Tariff revenue requirement approved by the Washington Commission and the corresponding expected annual impact on PSE’s revenue based on the effective dates: Effective Date Average Percentage Increase (Decrease) in Rates from prior year Total credit to be passed back to eligible customers (Dollars in Millions) January 1, 2017 0.3% $(51.7) January 1, 2016 (0.2) (57.3) Power Cost Update Compliance Filing On September 30, 2016, PSE filed with the Washington Commission an update to power costs under Schedule 95, which was consistent with the Commission's Order 4 in PSE’s 2014 PCORC under Docket No. UE-141141 and required under the joint petition filed March 9, 2016, seeking to postpone the filing of PSE's GRC. This allowed PSE to implement the December 1, 2016 price and volume changes associated with the Centralia Coal Transition purchase power agreement through a compliance filing. The following table sets forth the updated compliance filing rate adjustment that became effective on December 1, 2016, by operation of law and the corresponding expected annual impact on PSE's revenue based on the effective date: Effective Date Average Percentage Increase (Decrease) in Rates Increase (Decrease) in Revenue (Dollars in Millions) December 1, 2016 (1.7)% $(37.3) Natural Gas Regulation and Rates Natural Gas Conservation Rider The natural gas conservation rider collects revenue to cover the costs incurred in providing services and programs for conservation. Rates change annually on May 1 to collect the annual budget that started the prior January and to true-up for actual versus forecast conservation expenditures from the prior year as well as actual load being different than the forecasted load set in rates. The following table sets forth conservation rider rate adjustments approved by the Washington Commission and the corresponding expected annual impact on PSE’s revenue based on the effective dates: Effective Date Average Percentage Increase (Decrease) in Rates Increase (Decrease) in Revenue (Dollars in Millions) May 1, 2017 (0.1)% $(1.0) May 1, 2016 0.3 2.9 Natural Gas Property Tax Tracker Mechanism The purpose of the property tax tracker mechanism is to pass through the cost of all property taxes incurred by the Company. The mechanism removes property taxes from general rates and includes those costs for recovery in an adjusting tariff rate. After the implementation, the mechanism acts as a tracker rate schedule and collects the total amount of property taxes paid. The tracker will be adjusted on May 1 each year based on that year's assessed property taxes. The following table sets forth property tax tracker mechanism rate adjustments approved by the Washington Commission and the corresponding expected annual impact on PSE’s revenue based on the effective dates: Effective Date Average Increase (Decrease) in Revenue (Dollars in Millions) May 1, 2017 (0.1)% $(1.1) May 1, 2016 0.4 3.5 Natural Gas Cost Recovery Mechanism The purpose of the CRM is to recover capital costs related to projects included in PSE's pipe replacement program plan on file with the Washington Commission with the intended effect of enhancing the safety of the natural gas distribution system. The following table sets forth CRM rate adjustments as originally proposed by PSE or approved by the Washington Commission and the corresponding expected annual impact on PSE’s revenue based on the effective dates: Effective Date Average Increase (Decrease) in Revenue (Dollars in Millions) November 1, 2017, proposed 0.6% $5.4 November 1, 2016 0.6 5.6 Purchased Gas Adjustment PSE has a PGA mechanism that allows PSE to recover expected natural gas supply and transportation costs and defer, as a receivable or payable, any natural gas supply and transportation costs that exceed or fall short of this expected natural gas cost amount in PGA mechanism rates, including accrued interest. PSE is authorized by the Washington Commission to accrue carrying costs on PGA receivable and payable balances. A receivable or payable balance in the PGA mechanism reflects an under recovery or over recovery, respectively, of natural gas cost through the PGA mechanism. The following table sets forth the PGA rate adjustment approved by the Washington Commission and the corresponding expected annual impact on PSE’s revenue based on the effective date: Effective Date Average Percentage Increase (Decrease) in Rates Increase (Decrease) in Revenue (Dollars in Millions) November 1, 2016 (0.4)% $(4.1) |
Asset Retirement Obligation
Asset Retirement Obligation | 6 Months Ended |
Jun. 30, 2017 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligation | Asset Retirement Obligations The Company has recorded liabilities for steam generation sites, combustion turbine generation sites, wind generation sites, distribution and transmission poles, and natural gas mains where disposal is governed by ASC 410 “Asset Retirement and Environmental Obligations (ARO)”. On April 17, 2015, the United States Environmental Protection Agency (EPA) published a final rule, effective October 19, 2015, that regulates Coal Combustion Residuals (CCR) under the Resource Conservation and Recovery Act, Subtitle D. The CCR ruling requires the Company to perform an extensive study on the effects of coal ash on the environment and public health. The rule addresses the risks from coal ash disposal, such as leaking of contaminants into ground water, blowing of contaminants into the air as dust, and the catastrophic failure of coal ash surface impoundments. The CCR rule and two new agreements which include a consent decree with the Sierra Club and a settlement agreement with the Sierra Club and the National Wildlife Federation in 2016 make significant changes to the Company’s Colstrip operations. The changes were reviewed by the Company and the plant operator in 2015 and 2016. PSE had previously recognized a legal obligation in 2003 under EPA rules to dispose of coal ash material at Colstrip. Due to the updated Colstrip information, additional disposal costs were added to the ARO. On September 6, 2016, PSE entered into two new agreements requiring the Company to close the Colstrip 1 and 2 plants on or before July 1, 2022 and to incur additional costs, such as, monitoring, water treatment, forced evaporation and post-closure care for all Colstrip Units. As a result, in 2016 the Company increased the Colstrip ARO ending liability by $45.7 million for Colstrip Units 1 and 2 and $37.0 million for Colstrip Units 3 and 4. The actual ARO costs related to the CCR rule requirements may vary substantially from the estimates used to record the increased obligation due to uncertainty about the compliance strategies that will be used and the preliminary nature of available data used to estimate costs. The Company will continue to gather additional data and coordinate with the plant operator to make decisions about compliance strategies and the timing of closure activities. As additional information becomes available, the Company will update the ARO obligation for these changes, which could be material. For the six months ended June 30, 2017 , the Company reviewed the estimated remediation costs at Colstrip and reduced the Colstrip ARO liability by $5.0 million for Colstrip Units 1 and 2 and $13.3 million for Colstrip Units 3 and 4. The following table describes the changes to the Company’s ARO for the six months ended June 30, 2017 : Puget Sound Energy (Dollars in Thousands) Changes in ARO Balance at December 31, 2016 $ 200,345 New asset retirement obligation recognized in the period — Liability adjustments (136 ) Revisions in estimated cash flows (18,329 ) Accretion expense 2,746 Balance at June 30, 2017 $ 184,626 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitment and Contingencies Colstrip PSE has a 50% ownership interest in Colstrip Units 1 and 2 and a 25% interest in Colstrip Units 3 and 4. On March 6, 2013, the Sierra Club and the Montana Environmental Information Center filed a Clean Air Act citizen suit against all Colstrip owners in the U.S. District Court, District of Montana. Based on a second amended complaint filed in August 2014, the plaintiffs' lawsuit alleged violations of permitting requirements under the New Source Review/Prevention of Significant Deterioration program of the Clean Air Act arising from projects (plaintiffs initially claimed seventy-three projects, but this was reduced to two projects before trial in May 2016) undertaken at Colstrip during the time period from 2001 to 2012. On July 12, 2016, PSE reached a settlement with the Sierra Club to dismiss all of the Clean Air Act allegations against the Colstrip Generating Station, which was approved by the court on September 6, 2016. As part of the settlement that was signed by Colstrip 1 and 2 owners, PSE agreed, along with Talen Energy (the owner of the other 50% interest in Colstrip Units 1 and 2), to retire the two oldest units (Units 1 and 2) at Colstrip in eastern Montana by no later than July 1, 2022. PSE expects that the Washington Commission will allow full recovery in rates of the net book value (NBV) at retirement and related decommissioning costs consistent with prior precedents. As a result, PSE reclassified $176.8 million from a utility plant asset to a regulatory asset, which represents the expected NBV at retirement of Colstrip Units 1 and 2, based on the expected shutdown date of July 1, 2022 as of December 31, 2016 . Due to a re-estimate of Colstrip Units 1 and 2 ARO costs, the regulatory asset account was reduced to $175.2 million as of June 30, 2017 . Colstrip Units 3 and 4, which are newer and more efficient, are not affected by the settlement, and allegations in the lawsuit against Colstrip Units 3 and 4 were dismissed as part of the settlement. While PSE has estimated the ARO for Colstrip Units 1 and 2, the full scope of decommissioning activities and costs may vary from the estimates that are available at this time. Greenwood On March 9, 2016, a natural gas explosion occurred in the Greenwood neighborhood of Seattle, WA, damaging multiple structures. The Washington Commission Staff completed its investigation of the incident and filed a complaint September 20, 2016, seeking up to $3.2 million in fines from PSE. As of September 30, 2016, PSE accrued $3.2 million for the fine. On March 28, 2017, pipeline safety regulators and PSE reached a settlement in response to the complaint. As part of the agreement, PSE agreed to pay a penalty of $2.8 million , of which $1.3 million was suspended on condition that PSE completed a comprehensive inspection and remediation program. The settlement was presented to the Washington Commission during a scheduled hearing on May 15, 2017. On June 19, 2017, the Washington Commission approved the settlement without conditions and adopted the reduced penalty of $2.8 million , of which $1.3 million was suspended. On June 30, 2017, PSE paid the $1.5 million penalty it had accrued previously to a liability reserve account for property damage claims. Other Commitments and Contingencies The Company is also involved in litigation relating to claims arising out of its operations in the normal course of business. The Company recorded reserves of $0.5 million and $0.7 million relating to these claims as of June 30, 2017 and December 31, 2016 , respectively. In addition to the contractual obligations and consolidated commercial commitments disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2016 , during the six months ended June 30, 2017 , the Company entered into new power supply and service contracts with estimated payment obligations totaling $703.2 million through 2028. |
Summary of Consolidation Poli16
Summary of Consolidation Policy (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Summary of Consolidation Policy Basis of Presentation Puget Energy is an energy services holding company that owns Puget Sound Energy (PSE). PSE is a public utility incorporated in the state of Washington that furnishes electric and natural gas services in a territory covering approximately 6,000 square miles, primarily in the Puget Sound region. Puget Energy also has a wholly-owned non-regulated subsidiary, named Puget LNG, LLC (Puget LNG). Puget LNG was formed on November 29, 2016, and has the sole purpose of owning, developing and financing the non-regulated activity of the Tacoma LNG facility, currently under construction. PSE and Puget LNG are considered related parties with similar ownership by Puget Energy. Therefore, capital and operating costs that occur under PSE and are allocated to Puget LNG are related party transactions by nature. As of June 30, 2017, Puget LNG has incurred $65.2 million in construction work in progress and operating costs related to Puget LNG’s portion of the Tacoma LNG facility. In 2009, Puget Holdings LLC (Puget Holdings), owned by a consortium of long-term infrastructure investors, completed its merger with Puget Energy (the merger). As a result of the merger, all of Puget Energy’s common stock is indirectly owned by Puget Holdings. The acquisition of Puget Energy was accounted for in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 805, “Business Combinations” (ASC 805), as of the date of the merger. ASC 805 requires the acquirer to recognize and measure identifiable assets acquired and liabilities assumed at fair value as of the merger date. The consolidated financial statements of Puget Energy reflect the accounts of Puget Energy and its subsidiaries. PSE’s consolidated financial statements include the accounts of PSE and its subsidiary. Puget Energy and PSE are collectively referred to herein as “the Company.” The consolidated financial statements are presented after elimination of all significant intercompany items and transactions. PSE’s consolidated financial statements continue to be accounted for on a historical basis and PSE’s financial statements do not include any ASC 805 purchase accounting adjustments. The preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Non-Utility Property, Plant and Equipment For PSE, the costs of other property, plant and equipment are stated at historical cost. Expenditures for refurbishment and improvements that significantly add to productive capacity or extend useful life of an asset are capitalized. Replacements of minor items are expensed on a current basis. Gains and losses on assets sold or retired, which were previously recorded in utility plant, are apportioned between regulatory assets/liabilities and earnings. However, gains and losses on assets sold or retired, not previously recorded in utility plant, are reflected in earnings. The Tacoma LNG facility will provide peak-shaving services to PSE’s natural gas customers, and will provide LNG as fuel to transportation customers, particularly in the marine market. The Tacoma LNG facility is expected to be operational in 2019. Pursuant to the Washington Commission’s order, Puget LNG will be allocated approximately 57.0% of the capital and operating costs of the Tacoma LNG facility and PSE will be allocated the remaining 43.0% of the capital and operating costs. For Puget Energy, the $65.1 million in construction work in progress related to Puget LNG’s portion of the Tacoma LNG facility is reported in the “Other property and investments” financial statement line item. For PSE, the construction work in progress of $57.4 million related to PSE’s portion of the Tacoma LNG facility is reported in the “Utility plant - Natural gas plant” line item, as PSE is a regulated entity. |
Accounting for Derivative Ins17
Accounting for Derivative Instruments and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Derivative [Line Items] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table presents the volumes, fair values and locations of the Company's derivative instruments recorded on the balance sheets: Puget Energy and Puget Sound Energy At June 30, 2017 At December 31, 2016 (Dollars in Thousands) Volumes Assets 1 Liabilities 2 Volumes Assets 1 Liabilities 2 Interest rate swap derivatives 3 $ — $ — $ — $450 million $ — $ 141 Electric portfolio derivatives * 12,246 40,235 * 36,460 41,329 Natural gas derivatives (MMBtus) 4 310.6 million 8,337 22,033 336.4 million 26,619 19,101 Total derivative contracts ** $ 20,583 $ 62,268 ** $ 63,079 $ 60,571 Current ** $ 16,078 $ 44,031 ** $ 54,341 $ 44,310 Long-term ** 4,505 18,237 ** 8,738 16,261 Total derivative contracts ** $ 20,583 $ 62,268 ** $ 63,079 $ 60,571 _______________ 1 Balance sheet locations: Current and Long-term Unrealized gain on derivative instruments. 2 Balance sheet locations: Current and Long-term Unrealized loss on derivative instruments. 3 Interest rate swap contracts are only held at Puget Energy, and matured January 2017. 4 All fair value adjustments on derivatives relating to the natural gas business have been deferred in accordance with ASC 980, “Regulated Operations,” due to the purchased gas adjustment (PGA) mechanism. The net derivative asset or liability and offsetting regulatory liability or asset are related to contracts used to economically hedge the cost of physical gas purchased to serve natural gas customers. * Electric portfolio derivatives consist of electric generation fuel of 180.0 million One Million British Thermal Units (MMBtu) and purchased electricity of 1.9 million Megawatt Hours (MWhs) at June 30, 2017 , and 186.8 million MMBtus and 3.6 million MWhs at December 31, 2016 . ** Not meaningful and/or applicable. |
Offsetting Assets and Liabilities | The following tables present the potential effect of netting arrangements, including rights of set-off associated with the Company's derivative assets and liabilities: Puget Energy and Puget Sound Energy At June 30, 2017 Gross Amount Recognized in the Statement of Financial Position 1 Gross Amounts Offset in the Statement of Financial Position Net of Amounts Presented in the Statement of Financial Position Gross Amounts Not Offset in the Statement of Financial Position (Dollars in Thousands) Commodity Contracts Cash Collateral Received/Posted Net Amount Assets: Energy derivative contracts $ 20,583 $ — $ 20,583 $ (16,452 ) $ — $ 4,131 Liabilities: Energy derivative contracts 62,268 — 62,268 (16,452 ) (154 ) 45,662 Puget Energy and Puget Sound Energy At December 31, 2016 Gross Amount Recognized in the Statement of Financial Position 1 Gross Amounts Offset in the Statement of Financial Position Net of Amounts Presented in the Statement of Financial Position Gross Amounts Not Offset in the Statement of Financial Position (Dollars in Thousands) Commodity Contracts Cash Collateral Received/Posted Net Amount Assets: Energy derivative contracts $ 63,079 $ — $ 63,079 $ (42,858 ) $ — $ 20,221 Liabilities: Energy derivative contracts 60,430 — 60,430 (42,858 ) — 17,572 Interest rate swaps 2 141 — 141 — — 141 _______________ 1 All derivative contract deals are executed under ISDA, NAESB and WSPP master netting agreements with right of set-off. 2 Interest rate swap contracts are only held at Puget Energy |
Schedule of Credit Risk Related Contingent Features | The table below presents the fair value of the overall contractual contingent liability positions for the Company's derivative activity at June 30, 2017 : Puget Energy and Puget Sound Energy (Dollars in Thousands) At June 30, 2017 At December 31, 2016 Fair Value 1 Posted Contingent Fair Value 1 Posted Contingent Contingent Feature Liability Collateral Collateral Liability Collateral Collateral Credit rating 2 $ 7,076 $ — $ 7,076 $ 4,894 $ — $ 4,894 Requested credit for adequate assurance 24,407 — — 7,427 — — Forward value of contract 3 171 530 — 507 — — Total $ 31,654 $ 530 $ 7,076 $ 12,828 $ — $ 4,894 _______________ 1 Represents the derivative fair value of contracts with contingent features for counterparties in net derivative liability positions. Excludes NPNS, accounts payable and accounts receivable. 2 Failure by PSE to maintain an investment grade credit rating from each of the major credit rating agencies provides counterparties a contractual right to demand collateral. 3 Collateral requirements may vary, based on changes in the forward value of underlying transactions relative to contractually defined collateral thresholds. |
Parent Company [Member] | |
Derivative [Line Items] | |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following table presents the effect and locations of the realized and unrealized gains (losses) of the Company's derivatives recorded on the statements of income: Puget Energy and Three Months Ended June 30, Six Months Ended (Dollars in Thousands) Location 2017 2016 2017 2016 Interest rate contracts 1 : Non-hedged interest rate swap (expense) income $ — $ (359 ) $ 28 $ (1,213 ) Gas for Power Derivatives: Unrealized Unrealized gain (loss) on derivative instruments, net (5,746 ) 45,317 (21,882 ) 50,830 Realized Electric generation fuel (2,822 ) (12,327 ) (8,020 ) (33,010 ) Power Derivatives: Unrealized Unrealized gain (loss) on derivative instruments, net 1,912 1,407 (1,239 ) 12,716 Realized Purchased electricity (3,923 ) (3,576 ) (10,078 ) (14,795 ) Total gain (loss) recognized in income on derivatives $ (10,579 ) $ 30,462 $ (41,191 ) $ 14,528 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Schedule of Impaired Intangible Assets [Table Text Block] | the following impairments totaling $80.3 million were recorded to the Company's intangible asset contracts, with corresponding reductions to the regulatory liability as follows: Puget Energy (Dollars in Thousands) Valuation Date Contract Name Carrying Value Fair Value Write Down March 31, 2017 Wells Hydro $ 14,879 $ 13,067 $ 1,812 Rocky Reach 235,331 159,818 75,513 Priest Rapids RP 5,665 2,657 3,008 Total impairment $ 255,875 $ 175,542 $ 80,333 |
Fair Value Inputs, Liabilities, Quantitative Information | The fair value of the junior subordinated and long-term notes was estimated using the discounted cash flow method with the U.S. Treasury yields and the Company's credit spreads as inputs, interpolating to the maturity date of each issue. The carrying values and estimated fair values were as follows: Puget Energy At June 30, 2017 At December 31, 2016 (Dollars in Thousands) Level Carrying Value Fair Value Carrying Value Fair Value Liabilities: Junior subordinated notes 2 $ 250,000 $ 236,977 $ 250,000 $ 210,261 Long-term debt (fixed-rate), net of discount 1 2 5,098,506 6,444,404 5,091,593 6,337,287 Long-term debt (variable-rate) 2 60,554 60,554 12,480 12,480 Total liabilities $ 5,409,060 $ 6,741,935 $ 5,354,073 $ 6,560,028 Puget Sound Energy At June 30, 2017 At December 31, 2016 (Dollars in Thousands) Level Carrying Fair Carrying Fair Liabilities: Junior subordinated notes 2 $ 250,000 $ 236,977 $ 250,000 $ 210,261 Long-term debt (fixed-rate), net of discount 2 2 3,498,603 4,465,055 3,497,298 4,360,783 Total liabilities $ 3,748,603 $ 4,702,032 $ 3,747,298 $ 4,571,044 _______________ 1 The carrying value includes debt issuances costs of $30.4 million , and $33.0 million for June 30, 2017 and December 31, 2016 , respectively, which are not included in fair value. 2 The carrying value includes debt issuances costs of $25.9 million , and $27.2 million for June 30, 2017 and December 31, 2016 , respectively, which are not included in fair value. |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | Puget Energy and Puget Sound Energy Three Months Ended June 30, (Dollars in Thousands) 2017 2016 Level 3 Roll-Forward Net Asset/(Liability) Electric Natural Gas Total Electric Natural Gas Total Balance at beginning of period $ 3,788 $ 1,752 $ 5,540 $ 1,602 $ (1,622 ) $ (20 ) Changes during period: Realized and unrealized energy derivatives: Included in earnings 1 339 — 339 (1,954 ) — (1,954 ) Included in regulatory assets / liabilities — 1,124 1,124 — 1,562 1,562 Settlements (2,508 ) (1,974 ) (4,482 ) (494 ) (879 ) (1,373 ) Transferred into Level 3 — — — — — — Transferred out of Level 3 (976 ) 554 (422 ) (2,216 ) 455 (1,761 ) Balance at end of period $ 643 $ 1,456 $ 2,099 $ (3,062 ) $ (484 ) $ (3,546 ) The following table presents the Company's reconciliation of the changes in the fair value of Level 3 derivatives in the fair value hierarchy: Puget Energy and Puget Sound Energy Six Months Ended (Dollars in Thousands) 2017 2016 Level 3 Roll-Forward Net Asset/(Liability) Electric Natural Gas Total Electric Natural Gas Total Balance at beginning of period $ 972 $ 625 $ 1,597 $ (7,345 ) $ (2,383 ) $ (9,728 ) Changes during period: Realized and unrealized energy derivatives: Included in earnings 2 1,045 — 1,045 2,654 — 2,654 Included in regulatory assets / liabilities — 3,582 3,582 — 3,082 3,082 Settlements (3,838 ) (3,304 ) (7,142 ) (554 ) (1,816 ) (2,370 ) Transferred into Level 3 2,191 (553 ) 1,638 (2,080 ) — (2,080 ) Transferred out of Level 3 273 1,106 1,379 4,263 633 4,896 Balance at end of period $ 643 $ 1,456 $ 2,099 $ (3,062 ) $ (484 ) $ (3,546 ) ______________ 1 Income Statement locations: Unrealized (gain) loss on derivative instruments, net. Amounts include unrealized gains (losses) on derivatives still held in position as of the reporting date for electric derivatives of $0.5 million and $(2.5) million for the three months ended June 30, 2017 and 2016 , respectively . 2 Income Statement locations: Unrealized (gain) loss on derivative instruments, net. Amounts include unrealized gains (losses) on derivatives still held in position as of the reporting date for electric derivatives of $0.7 million and $3.1 million for the six months ended June 30, 2017 and 2016 , respectively. |
Fair Value Inputs, Assets and Liabilities, Quantitative Information | The following table presents the significant unobservable inputs used in estimating the impaired long-term power purchase contracts' fair value: Puget Energy Valuation Date Unobservable Input Low High Average March 31, 2017 Wells Hydro Power prices $8.76 per MWh $26.70 per MWh $20.86 per MWh Power contract costs (in thousands) 3,965 per qtr. 4,223 per qtr. 4,051 per qtr. Rocky Reach Power prices $8.53 per MWh $48.21 per MWh $27.69 per MWh Power contract costs (in thousands) 5,827 per qtr. 6,780 per qtr. 6,150 per qtr. Priest Rapids RP Power prices $13.70 per MWh $29.38 per MWh $23.14 per MWh Power contract costs (in thousands) 620 per year 4,022 per year 2,306 per year The following table presents the forward price ranges for the Company's Level 3 commodity contracts as of June 30, 2017 : Puget Energy and Fair Value Range (Dollars in Thousands) Assets 1 Liabilities 1 Valuation Technique Unobservable Input Low High Weighted Average Electric $ 4,453 $ 3,810 Discounted cash flow Power prices $13.00 per MWh $32.65 per MWh $24.41 per MWh Natural gas $ 3,600 $ 2,144 Discounted cash flow Natural gas prices $1.47 per MMBtu $3.14 per MMBtu $2.41 per MMBtu _______________ 1 The valuation techniques, unobservable inputs and ranges are the same for asset and liability positions. The following table presents the forward price ranges for the Company's Level 3 commodity contracts as of December 31, 2016 : Puget Energy and Fair Value Range (Dollars in Thousands) Assets 1 Liabilities 1 Valuation Technique Unobservable Input Low High Weighted Average Electric $ 5,794 $ 4,822 Discounted cash flow Power prices $11.86 per MWh $33.52 per MWh $27.61 per MWh Natural gas $ 3,303 $ 2,678 Discounted cash flow Natural gas prices $2.00 per MMBtu $3.24 per MMBtu $2.42 per MMBtu _______________ 1 The valuation techniques, unobservable inputs and ranges are the same for asset and liability positions. |
Parent Company [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table presents the Company's financial assets and liabilities by level, within the fair value hierarchy, that were accounted for at fair value on a recurring basis: |
Subsidiaries [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Puget Energy and Fair Value Fair Value Puget Sound Energy At June 30, 2017 At December 31, 2016 (Dollars in Thousands) Level 2 Level 3 Total Level 2 Level 3 Total Assets: Electric derivative instruments $ 7,793 $ 4,453 $ 12,246 $ 30,666 $ 5,794 $ 36,460 Natural gas derivative instruments 4,737 3,600 8,337 23,316 3,303 26,619 Total assets $ 12,530 $ 8,053 $ 20,583 $ 53,982 $ 9,097 $ 63,079 Liabilities: Interest rate derivative instruments 1 $ — $ — $ — $ 141 $ — $ 141 Electric derivative instruments 36,425 3,810 40,235 36,507 4,822 41,329 Natural gas derivative instruments 19,889 2,144 22,033 16,423 2,678 19,101 Total liabilities $ 56,314 $ 5,954 $ 62,268 $ 53,071 $ 7,500 $ 60,571 |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Changes in Projected Benefit Obligations | The following table summarizes the Company’s change in benefit obligation for the periods ended June 30, 2017 and December 31, 2016 : Puget Energy and Puget Sound Energy Qualified Pension Benefits SERP Pension Benefits Other Benefits Six Months Ended Year Six Months Ended Year Six Months Ended Year (Dollars in Thousands) June 30, 2017 December 31, June 30, December 31, June 30, December 31, Change in benefit obligation: Benefit obligation at beginning of period $ 652,607 $ 643,088 $ 51,734 $ 51,279 $ 11,194 $ 13,946 Service cost 10,040 18,913 457 1,085 36 93 Interest cost 14,186 28,689 1,143 2,325 250 533 Actuarial loss (gain) (253 ) 1,545 — 106 373 (2,262 ) Benefits paid (20,894 ) (38,730 ) (955 ) (3,061 ) (572 ) (1,264 ) Medicare part D subsidy received — — — — 100 148 Administrative Expense — (898 ) — — — — Benefit obligation at end of period $ 655,686 $ 652,607 $ 52,379 $ 51,734 $ 11,381 $ 11,194 |
Parent Company [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Net Benefit Costs | The following tables summarize the Company’s net periodic benefit cost for the three and six months ended June 30, 2017 and 2016 : Puget Energy Qualified SERP Other Three Months Ended June 30, (Dollars in Thousands) 2017 2016 2017 2016 2017 2016 Components of net periodic benefit cost: Service cost $ 5,023 $ 4,605 $ 228 $ 271 $ 16 $ 24 Interest cost 7,088 7,226 571 582 130 157 Expected return on plan assets (11,942 ) (11,687 ) — — (116 ) (111 ) Amortization of prior service cost (495 ) (495 ) 11 11 — — Amortization of net loss (gain) — — 269 228 (88 ) (29 ) Net periodic benefit cost $ (326 ) $ (351 ) $ 1,079 $ 1,092 $ (58 ) $ 41 Puget Energy Qualified SERP Other Six Months Ended (Dollars in Thousands) 2017 2016 2017 2016 2017 2016 Components of net periodic benefit cost: Service cost $ 10,040 $ 9,209 $ 457 $ 542 $ 36 $ 49 Interest cost 14,186 14,452 1,143 1,163 250 313 Expected return on plan assets (23,892 ) (23,374 ) — — (231 ) (222 ) Amortization of prior service cost (990 ) (990 ) 22 22 — — Amortization of net loss (gain) — — 538 456 (201 ) (58 ) Net periodic benefit cost $ (656 ) $ (703 ) $ 2,160 $ 2,183 $ (146 ) $ 82 |
Subsidiaries [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Net Benefit Costs | Puget Sound Energy Qualified Pension Benefits SERP Pension Benefits Other Benefits Three Months Ended June 30, (Dollars in Thousands) 2017 2016 2017 2016 2017 2016 Components of net periodic benefit cost: Service cost $ 5,023 $ 4,605 $ 228 $ 271 $ 16 $ 24 Interest cost 7,088 7,226 571 582 130 157 Expected return on plan assets (11,963 ) (11,736 ) — — (116 ) (111 ) Amortization of prior service cost (393 ) (393 ) 11 11 — — Amortization of net loss (gain) 3,095 3,740 392 333 (148 ) (90 ) Net periodic benefit cost $ 2,850 $ 3,442 $ 1,202 $ 1,197 $ (118 ) $ (20 ) Puget Sound Energy Qualified SERP Other Six Months Ended (Dollars in Thousands) 2017 2016 2017 2016 2017 2016 Components of net periodic benefit cost: Service cost $ 10,040 $ 9,209 $ 457 $ 542 $ 36 $ 49 Interest cost 14,186 14,452 1,143 1,163 250 313 Expected return on plan assets (23,931 ) (23,472 ) — — (231 ) (222 ) Amortization of prior service cost (787 ) (786 ) 22 22 — — Amortization of net loss (gain) 6,524 7,480 783 666 (320 ) (180 ) Net periodic benefit cost $ 6,032 $ 6,883 $ 2,405 $ 2,393 $ (265 ) $ (40 ) |
Regulation and Rates Public Ut
Regulation and Rates Public Utilities, Regulatory Proceeding (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Decoupling Mechanism [Member] | ||
Regulation and Rates [Line Items] | ||
Schedule of Deferrals Not Included in Rate Increases [Table Text Block] | As noted earlier, the Company is also limited to a 3.0% annual decoupling related cap on increases in total revenue. This limitation has been triggered as follows for natural gas with no impacts to electric: Effective Date Accrued Through Deferrals not Included in Annual Rate Increases (Dollars in Millions) Natural Gas: 2016 $47.4 2015 28.7 | |
Schedule of Graduated Scale of Rate Adjustment Mechanisms [Table Text Block] | The Washington Commission approved the following PSE requests to change rates under its electric and natural gas decoupling mechanisms: Effective Date Average Percentage Increase (Decrease) in Rates Increase (Decrease) in Revenue (Dollars in Millions) 1 Electric: May 1, 2017 2.0% $41.9 May 1, 2016 1.0 20.8 Natural Gas: May 1, 2017 2.4% $22.4 May 1, 2016 2.8 25.4 _______________ 1 The increase in revenue is net of reductions from excess earnings of $11.4 million for electric and $2.1 million for natural gas in 2017, and $11.9 million for electric and $5.5 million for natural gas in 2016. | |
PCA Mechanism [Member] | Electric [Member] | ||
Regulation and Rates [Line Items] | ||
Schedule of Effects on Annual Revenue Due to Approved Rate Adjustments [Table Text Block] | On August 7, 2015, the Washington Commission issued an order approving the settlement proposing changes to the PCA mechanism. The settlement agreement took effect January 1, 2017 and applies the following graduated scale: Company's Share Customers' Share Annual Power Cost Variability Over Under Over Under Over or Under Collected by up to $17 million 100% 100% —% —% Over or Under Collected by between $17 million - $40 million 35 50 65 50 Over or Under Collected beyond $40 + million 10 10 90 90 | The graduated scale that was applicable through December 31, 2016 was as follows: Annual Power Cost Variability Company’s Share Customers' Share +/- $20 million 100% —% +/- $20 million - $40 million 50 50 +/- $40 million - $120 million 10 90 +/- $120 + million 5 95 |
Property tax tracker [Member] [Domain] | Natural Gas [Member] | ||
Regulation and Rates [Line Items] | ||
Schedule of Effects on Annual Revenue Due to Approved Rate Adjustments [Table Text Block] | The following table sets forth property tax tracker mechanism rate adjustments approved by the Washington Commission and the corresponding expected annual impact on PSE’s revenue based on the effective dates: Effective Date Average Increase (Decrease) in Revenue (Dollars in Millions) May 1, 2017 (0.1)% $(1.1) May 1, 2016 0.4 3.5 | |
Property tax tracker [Member] [Domain] | Electric [Member] | ||
Regulation and Rates [Line Items] | ||
Schedule of Effects on Annual Revenue Due to Approved Rate Adjustments [Table Text Block] | The following table sets forth property tax tracker mechanism rate adjustments approved by the Washington Commission and the corresponding expected annual impact on PSE’s revenue based on the effective dates: Effective Date Average Percentage Increase (Decrease) in Rates Increase (Decrease) in Revenue (Dollars in Millions) May 1, 2017 (0.04)% $(0.9) May 1, 2016 0.3 5.7 | |
Conservation Rider [Member] | Natural Gas [Member] | ||
Regulation and Rates [Line Items] | ||
Schedule of Effects on Annual Revenue Due to Approved Rate Adjustments [Table Text Block] | The following table sets forth conservation rider rate adjustments approved by the Washington Commission and the corresponding expected annual impact on PSE’s revenue based on the effective dates: Effective Date Average Percentage Increase (Decrease) in Rates Increase (Decrease) in Revenue (Dollars in Millions) May 1, 2017 (0.1)% $(1.0) May 1, 2016 0.3 2.9 | |
Conservation Rider [Member] | Electric [Member] | ||
Regulation and Rates [Line Items] | ||
Schedule of Effects on Annual Revenue Due to Approved Rate Adjustments [Table Text Block] | The following table sets forth conservation rider rate adjustments approved by the Washington Commission and the corresponding expected annual impact on PSE’s revenue based on the effective dates: Effective Date Average Increase (Decrease) in Revenue (Dollars in Millions) May 1, 2017 0.7% $16.5 May 1, 2016 (0.5) (11.7) | |
Treasury Grants [Member] | Electric [Member] | ||
Regulation and Rates [Line Items] | ||
Schedule of Effects on Annual Revenue Due to Approved Rate Adjustments [Table Text Block] | The following table sets forth the Federal Incentive Tracker Tariff revenue requirement approved by the Washington Commission and the corresponding expected annual impact on PSE’s revenue based on the effective dates: Effective Date Average Percentage Increase (Decrease) in Rates from prior year Total credit to be passed back to eligible customers (Dollars in Millions) January 1, 2017 0.3% $(51.7) January 1, 2016 (0.2) (57.3) | |
Power Cost Only Rate Case (PCORC) [Member] | Electric [Member] | ||
Regulation and Rates [Line Items] | ||
Schedule of Effects on Annual Revenue Due to Approved Rate Adjustments [Table Text Block] | The following table sets forth the updated compliance filing rate adjustment that became effective on December 1, 2016, by operation of law and the corresponding expected annual impact on PSE's revenue based on the effective date: Effective Date Average Percentage Increase (Decrease) in Rates Increase (Decrease) in Revenue (Dollars in Millions) December 1, 2016 (1.7)% $(37.3) | |
Cost recovery mechanism [Member] | Natural Gas [Member] | ||
Regulation and Rates [Line Items] | ||
Schedule of Effects on Annual Revenue Due to Approved Rate Adjustments [Table Text Block] | The following table sets forth CRM rate adjustments as originally proposed by PSE or approved by the Washington Commission and the corresponding expected annual impact on PSE’s revenue based on the effective dates: Effective Date Average Increase (Decrease) in Revenue (Dollars in Millions) November 1, 2017, proposed 0.6% $5.4 November 1, 2016 0.6 5.6 | |
Purchased Gas Adjustment (PGA) [Member] | Natural Gas [Member] | ||
Regulation and Rates [Line Items] | ||
Schedule of Effects on Annual Revenue Due to Approved Rate Adjustments [Table Text Block] | The following table sets forth the PGA rate adjustment approved by the Washington Commission and the corresponding expected annual impact on PSE’s revenue based on the effective date: Effective Date Average Percentage Increase (Decrease) in Rates Increase (Decrease) in Revenue (Dollars in Millions) November 1, 2016 (0.4)% $(4.1) |
Asset Retirement Obligation (Ta
Asset Retirement Obligation (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Asset Retirement Obligations | The following table describes the changes to the Company’s ARO for the six months ended June 30, 2017 : Puget Sound Energy (Dollars in Thousands) Changes in ARO Balance at December 31, 2016 $ 200,345 New asset retirement obligation recognized in the period — Liability adjustments (136 ) Revisions in estimated cash flows (18,329 ) Accretion expense 2,746 Balance at June 30, 2017 $ 184,626 |
Summary of Consolidation Poli22
Summary of Consolidation Policy (Details) mi² in Thousands, $ in Millions | Jun. 30, 2017USD ($)mi² |
Subsidiaries [Member] | |
Summary of Consolidation Policy | |
Area of Service Territory (in sqmi) | mi² | 6 |
Subsidiaries [Member] | Tacoma LNG [Member] | |
Summary of Consolidation Policy | |
Jointly Owned Non-Utility Plant Share | 43.00% |
Construction in Progress, Gross | $ 57.4 |
Puget LNG [Member] | |
Summary of Consolidation Policy | |
Construction in Progress and O&M Expenses | $ 65.2 |
Jointly Owned Non-Utility Plant Share | 57.00% |
Construction in Progress, Gross | $ 65.1 |
Accounting for Derivative Ins23
Accounting for Derivative Instruments and Hedging Activities Derivative Activity and Notional Amounts (Details) - Not Designated as Hedging Instrument [Member] MWh in Millions, MMBTU in Millions, $ in Millions | Jun. 30, 2017USD ($)MWhMMBTU | Dec. 31, 2016USD ($)MWhMMBTU |
Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ | $ 0 | $ 450 |
Natural Gas Derivatives [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional amount, Nonmonetary | 310.6 | 336.4 |
Electric generation fuel [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional amount, Nonmonetary | 180 | 186.8 |
Purchased Electricity [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional amount, Nonmonetary | MWh | 1.9 | 3.6 |
Accounting for Derivative Ins24
Accounting for Derivative Instruments and Hedging Activities Derivative Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Derivative [Line Items] | ||
Unrealized gain on derivative instruments | $ 16,078 | $ 54,341 |
Derivative Liability, Current | 44,031 | 44,310 |
Assets, Long-term | 4,505 | 8,738 |
Unrealized loss on derivative instruments | 18,237 | 16,261 |
Subsidiaries [Member] | ||
Derivative [Line Items] | ||
Unrealized gain on derivative instruments | 16,078 | 54,341 |
Derivative Liability, Current | 44,031 | 44,170 |
Assets, Long-term | 4,505 | 8,738 |
Unrealized loss on derivative instruments | 18,237 | 16,261 |
Commodity Contract [Member] | ||
Derivative [Line Items] | ||
Assets | 20,583 | 63,079 |
Derivative Liability | 62,268 | 60,430 |
Not Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Assets | 20,583 | 63,079 |
Derivative Liability | 62,268 | 60,571 |
Not Designated as Hedging Instrument [Member] | Parent Company [Member] | ||
Derivative [Line Items] | ||
Unrealized gain on derivative instruments | 16,078 | 54,341 |
Derivative Liability, Current | 44,031 | 44,310 |
Assets, Long-term | 4,505 | 8,738 |
Unrealized loss on derivative instruments | 18,237 | 16,261 |
Not Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 0 | 450,000 |
Assets | 0 | 0 |
Derivative Liability | 0 | 141 |
Not Designated as Hedging Instrument [Member] | Electric Portfolio [Member] | ||
Derivative [Line Items] | ||
Assets | 12,246 | 36,460 |
Derivative Liability | 40,235 | 41,329 |
Not Designated as Hedging Instrument [Member] | Natural Gas Portfolio [Member] | ||
Derivative [Line Items] | ||
Assets | 8,337 | 26,619 |
Derivative Liability | $ 22,033 | $ 19,101 |
Accounting for Derivative Ins25
Accounting for Derivative Instruments and Hedging Activities Net Amount of Derivatives Reported in the Statement of Financial Position (Details) $ in Thousands, MMBTU in Millions | Jun. 30, 2017USD ($)MMBTU | Dec. 31, 2016USD ($)MMBTU | |
Liabilities: | |||
Derivative Asset, Current | $ 16,078 | $ 54,341 | |
Derivative Liability, Current | 44,031 | 44,310 | |
Derivative Asset, Noncurrent | 4,505 | 8,738 | |
Derivative Liability, Noncurrent | 18,237 | 16,261 | |
Commodity Contract [Member] | |||
Assets: | |||
Gross Amount Recognized in the Statement of Financial Position | [1] | 20,583 | 63,079 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 | |
Net of Amounts Presented in the Statement of Financial Position | 20,583 | 63,079 | |
Commodity Contracts | (16,452) | (42,858) | |
Cash Collateral Received | 0 | 0 | |
Net Amount | 4,131 | 20,221 | |
Liabilities: | |||
Gross Amount Recognized in the Statement of Financial Position | [1] | 62,268 | 60,430 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 | |
Net of Amounts Presented in the Statement of Financial Position | 62,268 | 60,430 | |
Commodity Contracts | (16,452) | (42,858) | |
Cash Collateral Posted | (154) | 0 | |
Net Amount | 45,662 | 17,572 | |
Interest Rate Contract [Member] | |||
Liabilities: | |||
Gross Amount Recognized in the Statement of Financial Position | [1],[2] | 141 | |
Gross Amounts Offset in the Statement of Financial Position | [2] | 0 | |
Net of Amounts Presented in the Statement of Financial Position | 141 | ||
Commodity Contracts | [2] | 0 | |
Cash Collateral Posted | [2] | 0 | |
Net Amount | 141 | ||
Subsidiaries [Member] | |||
Liabilities: | |||
Derivative Asset, Current | 16,078 | 54,341 | |
Derivative Liability, Current | 44,031 | 44,170 | |
Derivative Asset, Noncurrent | 4,505 | 8,738 | |
Derivative Liability, Noncurrent | 18,237 | 16,261 | |
Not Designated as Hedging Instrument [Member] | |||
Assets: | |||
Net of Amounts Presented in the Statement of Financial Position | 20,583 | 63,079 | |
Liabilities: | |||
Net of Amounts Presented in the Statement of Financial Position | 62,268 | 60,571 | |
Not Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | 0 | 450,000 | |
Assets: | |||
Net of Amounts Presented in the Statement of Financial Position | 0 | 0 | |
Liabilities: | |||
Net of Amounts Presented in the Statement of Financial Position | 0 | 141 | |
Not Designated as Hedging Instrument [Member] | Electric Portfolio [Member] | |||
Assets: | |||
Net of Amounts Presented in the Statement of Financial Position | 12,246 | 36,460 | |
Liabilities: | |||
Net of Amounts Presented in the Statement of Financial Position | $ 40,235 | $ 41,329 | |
Not Designated as Hedging Instrument [Member] | Natural Gas Derivatives [Member] | |||
Liabilities: | |||
Derivative, Nonmonetary Notional Amount | MMBTU | 310.6 | 336.4 | |
Not Designated as Hedging Instrument [Member] | Natural Gas Portfolio [Member] | |||
Assets: | |||
Net of Amounts Presented in the Statement of Financial Position | $ 8,337 | $ 26,619 | |
Liabilities: | |||
Net of Amounts Presented in the Statement of Financial Position | 22,033 | 19,101 | |
Not Designated as Hedging Instrument [Member] | Parent Company [Member] | |||
Liabilities: | |||
Derivative Asset, Current | 16,078 | 54,341 | |
Derivative Liability, Current | 44,031 | 44,310 | |
Derivative Asset, Noncurrent | 4,505 | 8,738 | |
Derivative Liability, Noncurrent | $ 18,237 | $ 16,261 | |
[1] | 1 All derivative contract deals are executed under ISDA, NAESB and WSPP master netting agreements with right of set-off. | ||
[2] | 2 Interest rate swap contracts are only held at Puget Energy |
Accounting for Derivative Ins26
Accounting for Derivative Instruments and Hedging Activities Recognized in Statement of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Derivative Instruments, (Loss) Gain [Line Items] | ||||
Unrealized (gain) loss on derivative instruments | $ 3,834 | $ (46,724) | $ 23,121 | $ (63,546) |
Subsidiaries [Member] | ||||
Derivative Instruments, (Loss) Gain [Line Items] | ||||
Unrealized (gain) loss on derivative instruments | 3,834 | (46,724) | 23,121 | (63,546) |
Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, (Loss) Gain [Line Items] | ||||
Unrealized (gain) loss on derivative instruments | 10,579 | (30,462) | 41,191 | (14,528) |
Not Designated as Hedging Instrument [Member] | Other Income (Deductions) [Member] | Interest Expense [Member] | ||||
Derivative Instruments, (Loss) Gain [Line Items] | ||||
Unrealized (gain) loss on derivative instruments | 0 | 359 | (28) | 1,213 |
Not Designated as Hedging Instrument [Member] | Electric generation fuel [Member] | Unrealized (Gain) Loss on Derivative Instruments, Net [Member] | ||||
Derivative Instruments, (Loss) Gain [Line Items] | ||||
Unrealized (gain) loss on derivative instruments | 5,746 | (45,317) | 21,882 | (50,830) |
Not Designated as Hedging Instrument [Member] | Commodity Contract [Member] | Electric generation fuel [Member] | ||||
Derivative Instruments, (Loss) Gain [Line Items] | ||||
Unrealized (gain) loss on derivative instruments | 2,822 | 12,327 | 8,020 | 33,010 |
Not Designated as Hedging Instrument [Member] | Commodity Contract [Member] | Purchased Electricity [Member] | ||||
Derivative Instruments, (Loss) Gain [Line Items] | ||||
Unrealized (gain) loss on derivative instruments | 3,923 | 3,576 | 10,078 | 14,795 |
Not Designated as Hedging Instrument [Member] | Electric [Member] | Unrealized (Gain) Loss on Derivative Instruments, Net [Member] | ||||
Derivative Instruments, (Loss) Gain [Line Items] | ||||
Unrealized (gain) loss on derivative instruments | $ (1,912) | $ (1,407) | $ 1,239 | $ (12,716) |
Accounting for Derivative Ins27
Accounting for Derivative Instruments and Hedging Activities Contractual Contingent Liability (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | |
External Credit Rating, Investment Grade [Member] | |||
Derivative [Line Items] | |||
Derivative, Credit Risk Exposure, Percentage | 97.70% | ||
External Credit Rating, Non Investment Grade [Member] | |||
Derivative [Line Items] | |||
Derivative, Credit Risk Exposure, Percentage | 2.30% | ||
Electric Portfolio [Member] | |||
Derivative [Line Items] | |||
Fair Value Liability | [1] | $ 31,654 | $ 12,828 |
Posted Collateral | 530 | 0 | |
Contingent Collateral | 7,076 | 4,894 | |
Credit Rating [Member] | Electric [Member] | |||
Derivative [Line Items] | |||
Contingent Collateral | [2] | 500 | |
Credit Rating [Member] | Electric Portfolio [Member] | |||
Derivative [Line Items] | |||
Fair Value Liability | [1],[2] | 7,076 | 4,894 |
Posted Collateral | [2] | 0 | 0 |
Contingent Collateral | [2] | 7,076 | 4,894 |
Credit Rating [Member] | Natural Gas Portfolio [Member] | |||
Derivative [Line Items] | |||
Posted Collateral | [2] | 1,000 | |
Requested Credit for Adequate Assurance [Member] | Electric Portfolio [Member] | |||
Derivative [Line Items] | |||
Fair Value Liability | [1] | 24,407 | 7,427 |
Posted Collateral | 0 | 0 | |
Contingent Collateral | 0 | 0 | |
Forward Value of Contract [Member] | Electric Portfolio [Member] | |||
Derivative [Line Items] | |||
Fair Value Liability | [1],[3] | 171 | 507 |
Posted Collateral | [3] | 530 | 0 |
Contingent Collateral | [3] | $ 0 | $ 0 |
[1] | 1 Represents the derivative fair value of contracts with contingent features for counterparties in net derivative liability positions. Excludes NPNS, accounts payable and accounts receivable. | ||
[2] | 2 Failure by PSE to maintain an investment grade credit rating from each of the major credit rating agencies provides counterparties a contractual right to demand collateral. | ||
[3] | 3 Collateral requirements may vary, based on changes in the forward value of underlying transactions relative to contractually defined collateral thresholds. |
Fair Value Measurements Debt at
Fair Value Measurements Debt at at Carrying and Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | |
Liabilities: | |||
Total long-term debt | $ 5,206,648 | $ 5,351,661 | |
Subsidiaries [Member] | |||
Liabilities: | |||
Total long-term debt | 3,546,191 | 3,744,886 | |
Discounted cash flow [Member] | Subsidiaries [Member] | Carrying Value [Member] | |||
Liabilities: | |||
Total long-term debt | 3,748,603 | 3,747,298 | |
Discounted cash flow [Member] | Subsidiaries [Member] | Carrying Value [Member] | Level 2 [Member] | |||
Liabilities: | |||
Junior subordinated notes | 250,000 | 250,000 | |
Long-term debt (fixed-rate), net of discount | [1] | 3,498,603 | 3,497,298 |
Debt issuance costs | [1] | 25,900 | 27,200 |
Discounted cash flow [Member] | Subsidiaries [Member] | Fair Value [Member] | |||
Liabilities: | |||
Total long-term debt | 4,702,032 | 4,571,044 | |
Discounted cash flow [Member] | Subsidiaries [Member] | Fair Value [Member] | Level 2 [Member] | |||
Liabilities: | |||
Junior subordinated notes | 236,977 | 210,261 | |
Long-term debt (fixed-rate), net of discount | [1] | $ 4,465,055 | $ 4,360,783 |
[1] | 1 The carrying value includes debt issuances costs of $30.4 million, and $33.0 million for June 30, 2017 and December 31, 2016, respectively, which are not included in fair value. |
Fair Value Measurements Assets
Fair Value Measurements Assets and Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||||||
Balance at beginning of period | $ 5,540 | $ (20) | $ 1,597 | $ (9,728) | |||||
Included in earnings | [1] | 339 | (1,954) | 1,045 | 2,654 | ||||
Included in regulatory assets/liabilities | 1,124 | 1,562 | 3,582 | 3,082 | |||||
Settlements | (4,482) | (1,373) | (7,142) | (2,370) | |||||
Transferred into Level 3 | 0 | 0 | 1,638 | (2,080) | |||||
Transferred out of Level 3 | (422) | (1,761) | 1,379 | 4,896 | |||||
Balance at end of period | 2,099 | (3,546) | 2,099 | (3,546) | |||||
Long-term Debt, Excluding Current Maturities | 5,206,648 | 5,206,648 | $ 5,351,661 | ||||||
Interest Rate Contract [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Derivative Liability | 141 | ||||||||
Electric Portfolio [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Unrealized Gain (Loss) on Derivatives and Commodity Contracts | 500 | (2,500) | 700 | 3,100 | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||||||
Balance at beginning of period | 3,788 | 1,602 | 972 | (7,345) | |||||
Included in earnings | [1] | 339 | (1,954) | 1,045 | 2,654 | ||||
Included in regulatory assets/liabilities | 0 | 0 | 0 | 0 | |||||
Settlements | (2,508) | (494) | (3,838) | (554) | |||||
Transferred into Level 3 | 0 | 0 | 2,191 | (2,080) | |||||
Transferred out of Level 3 | (976) | (2,216) | 273 | 4,263 | |||||
Balance at end of period | 643 | (3,062) | 643 | (3,062) | |||||
Natural Gas Portfolio [Member] | |||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||||||
Balance at beginning of period | 1,752 | (1,622) | 625 | (2,383) | |||||
Included in earnings | [1] | 0 | 0 | 0 | 0 | ||||
Included in regulatory assets/liabilities | 1,124 | 1,562 | 3,582 | 3,082 | |||||
Settlements | (1,974) | (879) | (3,304) | (1,816) | |||||
Transferred into Level 3 | 0 | 0 | (553) | 0 | |||||
Transferred out of Level 3 | 554 | 455 | 1,106 | 633 | |||||
Balance at end of period | 1,456 | $ (484) | 1,456 | $ (484) | |||||
Subsidiaries [Member] | |||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||||||
Long-term Debt, Excluding Current Maturities | 3,546,191 | 3,546,191 | 3,744,886 | ||||||
Fair Value, Measurements, Recurring [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Derivative Assets | 20,583 | 20,583 | 63,079 | ||||||
Derivative Liability | 62,268 | 62,268 | 60,571 | ||||||
Fair Value, Measurements, Recurring [Member] | Electric Portfolio [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Derivative Assets | 12,246 | 12,246 | 36,460 | ||||||
Derivative Liability | 40,235 | 40,235 | 41,329 | ||||||
Fair Value, Measurements, Recurring [Member] | Natural Gas Portfolio [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Derivative Assets | 8,337 | 8,337 | 26,619 | ||||||
Derivative Liability | 22,033 | 22,033 | 19,101 | ||||||
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Derivative Assets | 12,530 | 12,530 | 53,982 | ||||||
Derivative Liability | 56,314 | 56,314 | 53,071 | ||||||
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Electric Portfolio [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Derivative Assets | 7,793 | 7,793 | 30,666 | ||||||
Derivative Liability | 36,425 | 36,425 | 36,507 | ||||||
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Natural Gas Portfolio [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Derivative Assets | 4,737 | 4,737 | 23,316 | ||||||
Derivative Liability | 19,889 | 19,889 | 16,423 | ||||||
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Derivative Assets | 8,053 | 8,053 | 9,097 | ||||||
Derivative Liability | 5,954 | 5,954 | 7,500 | ||||||
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Electric Portfolio [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Derivative Assets | 4,453 | [2] | 4,453 | [2] | 5,794 | [3] | |||
Derivative Liability | 3,810 | [2] | 3,810 | [2] | 4,822 | [3] | |||
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Natural Gas Portfolio [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Derivative Assets | 3,600 | [2] | 3,600 | [2] | 3,303 | [3] | |||
Derivative Liability | 2,144 | [2] | 2,144 | [2] | 2,678 | [3] | |||
Fair Value, Measurements, Recurring [Member] | Parent Company [Member] | Level 2 [Member] | Interest Rate Contract [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Derivative Liability | 0 | 0 | 141 | ||||||
Fair Value, Measurements, Recurring [Member] | Parent Company [Member] | Level 3 [Member] | Interest Rate Contract [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Derivative Liability | 0 | 0 | 0 | ||||||
Fair Value, Measurements, Recurring [Member] | Parent Company [Member] | Total [Member] | Interest Rate Contract [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Derivative Liability | 0 | 0 | 141 | ||||||
Carrying Value [Member] | Level 2 [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Investments, Fair Value Disclosure | 50,200 | 50,200 | 49,100 | ||||||
Income Approach Valuation Technique [Member] | Carrying Value [Member] | Parent Company [Member] | |||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||||||
Long-term Debt, Excluding Current Maturities | 5,409,060 | 5,409,060 | 5,354,073 | ||||||
Income Approach Valuation Technique [Member] | Carrying Value [Member] | Parent Company [Member] | Level 2 [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Unamortized Debt Issuance Expense | [4] | 30,400 | 30,400 | 33,000 | |||||
Subordinated Debt Obligations, Fair Value Disclosure | 250,000 | 250,000 | 250,000 | ||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||||||
Long-term Debt, Fixed Rate, Net of Discount, Fair Value Disclosure | [4] | 5,098,506 | 5,098,506 | 5,091,593 | |||||
Long-term Debt, Variable Rate, Net of Discount, Fair Value Disclosure | [4] | 60,554 | 60,554 | 12,480 | |||||
Income Approach Valuation Technique [Member] | Carrying Value [Member] | Subsidiaries [Member] | |||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||||||
Long-term Debt, Excluding Current Maturities | 3,748,603 | 3,748,603 | 3,747,298 | ||||||
Income Approach Valuation Technique [Member] | Carrying Value [Member] | Subsidiaries [Member] | Level 2 [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Unamortized Debt Issuance Expense | [4] | 25,900 | 25,900 | 27,200 | |||||
Subordinated Debt Obligations, Fair Value Disclosure | 250,000 | 250,000 | 250,000 | ||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||||||
Long-term Debt, Fixed Rate, Net of Discount, Fair Value Disclosure | [4] | 3,498,603 | 3,498,603 | 3,497,298 | |||||
Income Approach Valuation Technique [Member] | Total [Member] | Parent Company [Member] | |||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||||||
Long-term Debt, Excluding Current Maturities | 6,741,935 | 6,741,935 | 6,560,028 | ||||||
Income Approach Valuation Technique [Member] | Total [Member] | Parent Company [Member] | Level 2 [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Subordinated Debt Obligations, Fair Value Disclosure | 236,977 | 236,977 | 210,261 | ||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||||||
Long-term Debt, Fixed Rate, Net of Discount, Fair Value Disclosure | [4] | 6,444,404 | 6,444,404 | 6,337,287 | |||||
Long-term Debt, Variable Rate, Net of Discount, Fair Value Disclosure | [4] | 60,554 | 60,554 | 12,480 | |||||
Income Approach Valuation Technique [Member] | Total [Member] | Subsidiaries [Member] | |||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||||||
Long-term Debt, Excluding Current Maturities | 4,702,032 | 4,702,032 | 4,571,044 | ||||||
Income Approach Valuation Technique [Member] | Total [Member] | Subsidiaries [Member] | Level 2 [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Subordinated Debt Obligations, Fair Value Disclosure | 236,977 | 236,977 | 210,261 | ||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||||||
Long-term Debt, Fixed Rate, Net of Discount, Fair Value Disclosure | [4] | $ 4,465,055 | $ 4,465,055 | $ 4,360,783 | |||||
[1] | 1 Income Statement locations: Unrealized (gain) loss on derivative instruments, net. Amounts include unrealized gains (losses) on derivatives still held in position as of the reporting date for electric derivatives of $0.5 million and $(2.5) million for the three months ended June 30, 2017 and 2016, respectively. | ||||||||
[2] | 1 The valuation techniques, unobservable inputs and ranges are the same for asset and liability positions | ||||||||
[3] | 1 The valuation techniques, unobservable inputs and ranges are the same for asset and liability positions. | ||||||||
[4] | 1 The carrying value includes debt issuances costs of $30.4 million, and $33.0 million for June 30, 2017 and December 31, 2016, respectively, which are not included in fair value. |
Fair Value Measurements Valuati
Fair Value Measurements Valuation Techniques for Measurement with Unobservable Inputs (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($)$ / MWh | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)$ / MMBTU$ / MWh | Jun. 30, 2016USD ($) | Dec. 31, 2035 | Dec. 31, 2034 | Dec. 31, 2033 | Dec. 31, 2032 | Dec. 31, 2031 | Dec. 31, 2030 | Dec. 31, 2029 | Dec. 31, 2028 | Dec. 31, 2027 | Dec. 31, 2026 | Dec. 31, 2025 | Dec. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2014$ / MMBTU$ / MWh | Dec. 31, 2016USD ($) | Dec. 31, 2015 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||||||||||||||||||||
Fair Value measurement, sensitivity analysis, hypothetical increase or decrease of market prices, result on fair value | 10.00% | 10.00% | 10.00% | ||||||||||||||||||||||||
Fair Value Measurements, Sensitivity Analysis, Hypothetical Increase or Decrease of Market Prices, Result on Fair Value | $ 1,000,000 | $ 1,000,000 | $ 200,000 | ||||||||||||||||||||||||
Finite-Lived Intangible Assets, Net | $ 255,875,000 | ||||||||||||||||||||||||||
Impairment of Intangible Assets (Excluding Goodwill) | 80,333,000 | ||||||||||||||||||||||||||
Carrying Value [Member] | |||||||||||||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||||||||||||||||||||
Finite-lived Intangible Assets, Fair Value Disclosure | 175,542,000 | ||||||||||||||||||||||||||
Fair Value, Measurements, Recurring [Member] | |||||||||||||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||||||||||||||||||||
Derivative Assets | 20,583,000 | 20,583,000 | 63,079,000 | ||||||||||||||||||||||||
Derivative Liability | 62,268,000 | 62,268,000 | 60,571,000 | ||||||||||||||||||||||||
Electric Portfolio [Member] | |||||||||||||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||||||||||||||||||||
Unrealized Gain (Loss) on Derivatives and Commodity Contracts | 500,000 | $ (2,500,000) | $ 700,000 | $ 3,100,000 | |||||||||||||||||||||||
Electric Portfolio [Member] | Discounted cash flow [Member] | Low [Member] | |||||||||||||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||||||||||||||||||||
Price (per MWh) | $ / MWh | 13 | 11.86 | |||||||||||||||||||||||||
Electric Portfolio [Member] | Discounted cash flow [Member] | High [Member] | |||||||||||||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||||||||||||||||||||
Price (per MWh) | $ / MWh | 32.65 | 33.52 | |||||||||||||||||||||||||
Electric Portfolio [Member] | Discounted cash flow [Member] | Weighted Average [Member] | |||||||||||||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||||||||||||||||||||
Price (per MWh) | $ / MWh | 24.41 | 27.61 | |||||||||||||||||||||||||
Electric Portfolio [Member] | Fair Value, Measurements, Recurring [Member] | |||||||||||||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||||||||||||||||||||
Derivative Assets | 12,246,000 | $ 12,246,000 | 36,460,000 | ||||||||||||||||||||||||
Derivative Liability | 40,235,000 | $ 40,235,000 | 41,329,000 | ||||||||||||||||||||||||
Natural Gas Portfolio [Member] | Discounted cash flow [Member] | Low [Member] | |||||||||||||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||||||||||||||||||||
Price (per MMBtu) | $ / MMBTU | 1.47 | 2 | |||||||||||||||||||||||||
Natural Gas Portfolio [Member] | Discounted cash flow [Member] | High [Member] | |||||||||||||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||||||||||||||||||||
Price (per MMBtu) | $ / MMBTU | 3.14 | 3.24 | |||||||||||||||||||||||||
Natural Gas Portfolio [Member] | Discounted cash flow [Member] | Weighted Average [Member] | |||||||||||||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||||||||||||||||||||
Price (per MMBtu) | $ / MMBTU | 2.41 | 2.42 | |||||||||||||||||||||||||
Natural Gas Portfolio [Member] | Fair Value, Measurements, Recurring [Member] | |||||||||||||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||||||||||||||||||||
Derivative Assets | 8,337,000 | $ 8,337,000 | 26,619,000 | ||||||||||||||||||||||||
Derivative Liability | 22,033,000 | 22,033,000 | 19,101,000 | ||||||||||||||||||||||||
Commodity Contract [Member] | |||||||||||||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||||||||||||||||||||
Derivative Assets | 20,583,000 | 20,583,000 | 63,079,000 | ||||||||||||||||||||||||
Derivative Liability | $ 62,268,000 | $ 62,268,000 | $ 60,430,000 | ||||||||||||||||||||||||
Wells Project [Member] | |||||||||||||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||||||||||||||||||||
Finite-Lived Intangible Assets, Net | 14,879,000 | ||||||||||||||||||||||||||
Impairment of Intangible Assets (Excluding Goodwill) | 1,812,000 | ||||||||||||||||||||||||||
Wells Project [Member] | Carrying Value [Member] | |||||||||||||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||||||||||||||||||||
Finite-lived Intangible Assets, Fair Value Disclosure | $ 13,067,000 | ||||||||||||||||||||||||||
Wells Project [Member] | Discounted cash flow [Member] | Low [Member] | |||||||||||||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||||||||||||||||||||
Price (per MWh) | $ / MWh | 8.76 | ||||||||||||||||||||||||||
Fair Value Inputs, Power Contract Costs | $ 3,965 | ||||||||||||||||||||||||||
Wells Project [Member] | Discounted cash flow [Member] | High [Member] | |||||||||||||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||||||||||||||||||||
Price (per MWh) | $ / MWh | 26.70 | ||||||||||||||||||||||||||
Fair Value Inputs, Power Contract Costs | $ 4,223 | ||||||||||||||||||||||||||
Wells Project [Member] | Discounted cash flow [Member] | Weighted Average [Member] | |||||||||||||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||||||||||||||||||||
Price (per MWh) | $ / MWh | 20.86 | ||||||||||||||||||||||||||
Fair Value Inputs, Power Contract Costs | $ 4,051 | ||||||||||||||||||||||||||
Rocky Reach Project [Member] | |||||||||||||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||||||||||||||||||||
Finite-Lived Intangible Assets, Net | 235,331,000 | ||||||||||||||||||||||||||
Impairment of Intangible Assets (Excluding Goodwill) | 75,513,000 | ||||||||||||||||||||||||||
Rocky Reach Project [Member] | Carrying Value [Member] | |||||||||||||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||||||||||||||||||||
Finite-lived Intangible Assets, Fair Value Disclosure | $ 159,818,000 | ||||||||||||||||||||||||||
Rocky Reach Project [Member] | Discounted cash flow [Member] | Low [Member] | |||||||||||||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||||||||||||||||||||
Price (per MWh) | $ / MWh | 8.53 | ||||||||||||||||||||||||||
Fair Value Inputs, Power Contract Costs | $ 5,827 | ||||||||||||||||||||||||||
Rocky Reach Project [Member] | Discounted cash flow [Member] | High [Member] | |||||||||||||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||||||||||||||||||||
Price (per MWh) | $ / MWh | 48.21 | ||||||||||||||||||||||||||
Fair Value Inputs, Power Contract Costs | $ 6,780 | ||||||||||||||||||||||||||
Rocky Reach Project [Member] | Discounted cash flow [Member] | Weighted Average [Member] | |||||||||||||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||||||||||||||||||||
Price (per MWh) | $ / MWh | 27.69 | ||||||||||||||||||||||||||
Fair Value Inputs, Power Contract Costs | $ 6,150 | ||||||||||||||||||||||||||
Priest Rapids Development [Member] | |||||||||||||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||||||||||||||||||||
Finite-Lived Intangible Assets, Net | 5,665,000 | ||||||||||||||||||||||||||
Impairment of Intangible Assets (Excluding Goodwill) | 3,008,000 | ||||||||||||||||||||||||||
Priest Rapids Development [Member] | Carrying Value [Member] | |||||||||||||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||||||||||||||||||||
Finite-lived Intangible Assets, Fair Value Disclosure | $ 2,657,000 | ||||||||||||||||||||||||||
Priest Rapids Development [Member] | Discounted cash flow [Member] | Low [Member] | |||||||||||||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||||||||||||||||||||
Price (per MWh) | $ / MWh | 13.70 | ||||||||||||||||||||||||||
Fair Value Inputs, Power Contract Costs | $ 620 | ||||||||||||||||||||||||||
Priest Rapids Development [Member] | Discounted cash flow [Member] | High [Member] | |||||||||||||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||||||||||||||||||||
Price (per MWh) | $ / MWh | 29.38 | ||||||||||||||||||||||||||
Fair Value Inputs, Power Contract Costs | $ 4,022 | ||||||||||||||||||||||||||
Priest Rapids Development [Member] | Discounted cash flow [Member] | Weighted Average [Member] | |||||||||||||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||||||||||||||||||||
Price (per MWh) | $ / MWh | 23.14 | ||||||||||||||||||||||||||
Fair Value Inputs, Power Contract Costs | $ 2,306 | ||||||||||||||||||||||||||
Scenario, Forecast [Member] | |||||||||||||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||||||||||||||||||||
Fair Value Inputs, Comparability Adjustments | 24.40% | 24.40% | 24.40% | 24.40% | 24.40% | 24.40% | 24.40% | 24.40% | 24.40% | 24.40% | 24.40% | 24.40% | 24.40% | 14.10% | 14.10% | 14.10% | 14.10% | 14.10% | 14.10% |
Retirement Benefits Net Periodi
Retirement Benefits Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Qualified Pension Benefits [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 9,000 | $ 18,000 | |||
Components of net periodic benefit cost: | |||||
Service cost | 10,040 | $ 18,913 | |||
Interest cost | 14,186 | 28,689 | |||
Supplemental Employee Retirement Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Contributions by Employer | 500 | 1,000 | |||
Components of net periodic benefit cost: | |||||
Service cost | 457 | 1,085 | |||
Interest cost | 1,143 | 2,325 | |||
Other Benefit [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Contributions by Employer | 100 | 200 | |||
Components of net periodic benefit cost: | |||||
Service cost | 36 | 93 | |||
Interest cost | 250 | $ 533 | |||
Parent Company [Member] | Qualified Pension Benefits [Member] | |||||
Components of net periodic benefit cost: | |||||
Service cost | 5,023 | $ 4,605 | 10,040 | $ 9,209 | |
Interest cost | 7,088 | 7,226 | 14,186 | 14,452 | |
Expected return on plan assets | (11,942) | (11,687) | (23,892) | (23,374) | |
Amortization of prior service cost | (495) | (495) | (990) | (990) | |
Amortization of net loss (gain) | 0 | 0 | 0 | 0 | |
Net periodic benefit cost | (326) | (351) | (656) | (703) | |
Parent Company [Member] | Supplemental Employee Retirement Plan [Member] | |||||
Components of net periodic benefit cost: | |||||
Service cost | 228 | 271 | 457 | 542 | |
Interest cost | 571 | 582 | 1,143 | 1,163 | |
Expected return on plan assets | 0 | 0 | 0 | 0 | |
Amortization of prior service cost | 11 | 11 | 22 | 22 | |
Amortization of net loss (gain) | 269 | 228 | 538 | 456 | |
Net periodic benefit cost | 1,079 | 1,092 | 2,160 | 2,183 | |
Parent Company [Member] | Other Benefit [Member] | |||||
Components of net periodic benefit cost: | |||||
Service cost | 16 | 24 | 36 | 49 | |
Interest cost | 130 | 157 | 250 | 313 | |
Expected return on plan assets | (116) | (111) | (231) | (222) | |
Amortization of prior service cost | 0 | 0 | 0 | 0 | |
Amortization of net loss (gain) | (88) | (29) | (201) | (58) | |
Net periodic benefit cost | (58) | 41 | (146) | 82 | |
Subsidiaries [Member] | Qualified Pension Benefits [Member] | |||||
Components of net periodic benefit cost: | |||||
Service cost | 5,023 | 4,605 | 10,040 | 9,209 | |
Interest cost | 7,088 | 7,226 | 14,186 | 14,452 | |
Expected return on plan assets | (11,963) | (11,736) | (23,931) | (23,472) | |
Amortization of prior service cost | (393) | (393) | (787) | (786) | |
Amortization of net loss (gain) | 3,095 | 3,740 | 6,524 | 7,480 | |
Net periodic benefit cost | 2,850 | 3,442 | 6,032 | 6,883 | |
Subsidiaries [Member] | Supplemental Employee Retirement Plan [Member] | |||||
Components of net periodic benefit cost: | |||||
Service cost | 228 | 271 | 457 | 542 | |
Interest cost | 571 | 582 | 1,143 | 1,163 | |
Expected return on plan assets | 0 | 0 | 0 | 0 | |
Amortization of prior service cost | 11 | 11 | 22 | 22 | |
Amortization of net loss (gain) | 392 | 333 | 783 | 666 | |
Net periodic benefit cost | 1,202 | 1,197 | 2,405 | 2,393 | |
Subsidiaries [Member] | Other Benefit [Member] | |||||
Components of net periodic benefit cost: | |||||
Service cost | 16 | 24 | 36 | 49 | |
Interest cost | 130 | 157 | 250 | 313 | |
Expected return on plan assets | (116) | (111) | (231) | (222) | |
Amortization of prior service cost | 0 | 0 | 0 | 0 | |
Amortization of net loss (gain) | (148) | (90) | (320) | (180) | |
Net periodic benefit cost | $ (118) | $ (20) | $ (265) | $ (40) |
Retirement Benefits Change in N
Retirement Benefits Change in Net Benefit Obligation (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Qualified Pension Benefits [Member] | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||
Benefit obligation at beginning of period | $ 652,607 | $ 643,088 |
Service cost | 10,040 | 18,913 |
Interest cost | 14,186 | 28,689 |
Actuarial loss/(gain) | (253) | 1,545 |
Benefits paid | (20,894) | (38,730) |
Medicare part D subsidiary received | 0 | 0 |
Administrative Expense | 0 | (898) |
Benefit obligation at end of period | 655,686 | 652,607 |
Supplemental Employee Retirement Plan [Member] | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||
Benefit obligation at beginning of period | 51,734 | 51,279 |
Service cost | 457 | 1,085 |
Interest cost | 1,143 | 2,325 |
Actuarial loss/(gain) | 0 | 106 |
Benefits paid | (955) | (3,061) |
Medicare part D subsidiary received | 0 | 0 |
Administrative Expense | 0 | 0 |
Benefit obligation at end of period | 52,379 | 51,734 |
Other Benefit [Member] | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||
Benefit obligation at beginning of period | 11,194 | 13,946 |
Service cost | 36 | 93 |
Interest cost | 250 | 533 |
Actuarial loss/(gain) | 373 | (2,262) |
Benefits paid | (572) | (1,264) |
Medicare part D subsidiary received | 100 | 148 |
Administrative Expense | 0 | 0 |
Benefit obligation at end of period | $ 11,381 | $ 11,194 |
Retirement Benefits Activity (D
Retirement Benefits Activity (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2017 | |
Qualified Pension Benefits [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 9 | $ 18 | |
Supplemental Employee Retirement Plan [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Plan Assets, Contributions by Employer | 0.5 | 1 | |
Other Benefit [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 0.1 | $ 0.2 | |
Subsidiaries [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Contribution Plan, Employer Additional Contribution of Base Pay, Percentage | 4.00% | ||
Defined Contribution Plan, Employer Matching Contribution, Percent | 1.00% | ||
Scenario, Forecast [Member] | Qualified Pension Benefits [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Aggregate expected contributions | $ 18 | ||
Scenario, Forecast [Member] | Supplemental Employee Retirement Plan [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Aggregate expected contributions | 1.9 | ||
Scenario, Forecast [Member] | Other Benefit [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Aggregate expected contributions | $ 0.3 |
Regulation and Rates (Details)
Regulation and Rates (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | 14 Months Ended | |||||||||||||||
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2013 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2013 | Dec. 13, 2017 | Nov. 01, 2017 | May 01, 2017 | Apr. 03, 2017 | Jan. 13, 2017 | Jan. 01, 2017 | Dec. 01, 2016 | Nov. 01, 2016 | May 01, 2016 | Dec. 31, 2015 | Jan. 01, 2015 | May 14, 2012 | |
Regulatory Assets [Line Items] | ||||||||||||||||||
Regulated Utility, Allowed Rate of Return on Net Regulatory Assets and Liabilities | 7.77% | 7.80% | ||||||||||||||||
Storm Damage Costs Incurred During Period | $ 20.8 | $ 15.6 | ||||||||||||||||
Storm Damage Costs Deferred During Period | 12.1 | 6.5 | ||||||||||||||||
Public Utilities, Rate Case, Deferred Storm Costs Threshold | 8 | |||||||||||||||||
Public Utilities, Rate Case, Approved Effective Common Equity in Capital Structure | 48.00% | |||||||||||||||||
Public Utilities, Rate Case, Approved Effective Return on Equity | 9.80% | |||||||||||||||||
Subsidiaries [Member] | ||||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||||
American Recovery and Reinvestment Tax Act of 2009, Grant, Overall Average Rate Reduction | (0.20%) | |||||||||||||||||
American Recovery and Reinvestment Tax Act of 2009, Total Grant Pass Through Amount | $ (57.3) | |||||||||||||||||
Power Cost Only Rate Case (PCORC) [Member] | Electric [Member] | ||||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||||
Public Utilities, Rate Case, Approved Effective Annual Rate Percentage Increase (Decrease) | (1.70%) | |||||||||||||||||
Public Utilities, Rate Case, Approved Effective Annual Rate Increase (Decrease) | $ (37.3) | |||||||||||||||||
Energy Conservation Costs [Member] | Natural Gas [Member] | ||||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||||
Public Utilities, Rate Case, Approved Effective Annual Rate Percentage Increase (Decrease) | (0.10%) | 0.30% | ||||||||||||||||
Public Utilities, Rate Case, Approved Effective Annual Rate Increase (Decrease) | $ (1) | $ 2.9 | ||||||||||||||||
Energy Conservation Costs [Member] | Electric [Member] | ||||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||||
Public Utilities, Rate Case, Approved Effective Annual Rate Percentage Increase (Decrease) | 0.70% | (0.50%) | ||||||||||||||||
Public Utilities, Rate Case, Approved Effective Annual Rate Increase (Decrease) | $ 16.5 | $ (11.7) | ||||||||||||||||
Property tax tracker [Member] [Domain] | Natural Gas [Member] | ||||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||||
Public Utilities, Rate Case, Approved Effective Annual Rate Percentage Increase (Decrease) | (0.10%) | 0.40% | ||||||||||||||||
Public Utilities, Rate Case, Approved Effective Annual Rate Increase (Decrease) | $ (1.1) | $ 3.5 | ||||||||||||||||
Property tax tracker [Member] [Domain] | Electric [Member] | ||||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||||
Public Utilities, Rate Case, Approved Effective Annual Rate Percentage Increase (Decrease) | (0.04%) | 0.30% | ||||||||||||||||
Public Utilities, Rate Case, Approved Effective Annual Rate Increase (Decrease) | $ (0.9) | $ 5.7 | ||||||||||||||||
Cost recovery mechanism [Member] | Natural Gas [Member] | ||||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||||
Public Utilities, Rate Case, Approved Effective Annual Rate Percentage Increase (Decrease) | 0.60% | |||||||||||||||||
Public Utilities, Rate Case, Approved Effective Annual Rate Increase (Decrease) | $ 5.6 | |||||||||||||||||
Purchased Gas Adjustment (PGA) [Member] | Natural Gas [Member] | ||||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||||
Public Utilities, Rate Case, Approved Effective Annual Rate Percentage Increase (Decrease) | (0.40%) | |||||||||||||||||
Public Utilities, Rate Case, Approved Effective Annual Rate Increase (Decrease) | $ (4.1) | |||||||||||||||||
Decoupling Mechanism [Member] | Natural Gas [Member] | ||||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||||
Public Utilities, Rate Case, Approved Effective Annual Rate Percentage Increase (Decrease) | 2.40% | 2.80% | 2.20% | |||||||||||||||
Public Utilities, Rate Case, Approved Effective Annual Rate Increase (Decrease) | $ 22.4 | $ 25.4 | ||||||||||||||||
Decoupling Mechanism [Member] | Electric [Member] | ||||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||||
Public Utilities, Rate Case, Approved Effective Annual Rate Percentage Increase (Decrease) | 2.00% | 1.00% | 3.00% | |||||||||||||||
Public Utilities, Rate Case, Approved Effective Annual Rate Increase (Decrease) | $ 41.9 | $ 20.8 | ||||||||||||||||
Decoupling Mechanism [Member] | Subsidiaries [Member] | Natural Gas [Member] | ||||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||||
Public Utilities, Rate Case, Approved Effective Annual Rate Increase (Decrease) | 2.1 | $ 5.5 | ||||||||||||||||
Decoupling Mechanism [Member] | Subsidiaries [Member] | Electric [Member] | ||||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||||
Public Utilities, Rate Case, Approved Effective Annual Rate Increase (Decrease) | 11.4 | 11.9 | ||||||||||||||||
Decoupling Mechanism [Member] | Maximum [Member] | ||||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||||
Public Utilities, Rate Case, Approved Effective Annual Rate Percentage Increase (Decrease) | 3.00% | |||||||||||||||||
Decoupling Mechanism [Member] | Deferred Revenue [Domain] | Natural Gas [Member] | ||||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||||
Public Utilities, Rate Case, Approved Effective Annual Rate Increase (Decrease) | $ 47.4 | $ 28.7 | ||||||||||||||||
General Rate Case [Member] | Subsidiaries [Member] | Natural Gas [Member] | ||||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||||
Public Utilities, Rate Case, Approved Overall Rate Impact Increase (Decrease) | $ 29.3 | $ 22.3 | ||||||||||||||||
Public Utilities, Rate Case, Approved Overall Effective Annual Rate Percentage Increase (Decrease) | 3.20% | 2.40% | ||||||||||||||||
General Rate Case [Member] | Subsidiaries [Member] | Electric [Member] | ||||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||||
Public Utilities, Rate Case, Approved Overall Rate Impact Increase (Decrease) | $ 67.9 | $ 86.3 | ||||||||||||||||
Public Utilities, Rate Case, Approved Overall Effective Annual Rate Percentage Increase (Decrease) | 3.20% | 4.10% | ||||||||||||||||
Customers share [Member] | Range 2 [Member] | ||||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||||
Annual Power Cost Variability, Percentage | 50.00% | |||||||||||||||||
Customers share [Member] | Range 3 [Member] | ||||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||||
Annual Power Cost Variability, Percentage | 90.00% | |||||||||||||||||
Customers share [Member] | Range 4 [Member] | ||||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||||
Annual Power Cost Variability, Percentage | 95.00% | |||||||||||||||||
Customers share [Member] | Range 1 [Member] | ||||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||||
Annual Power Cost Variability, Percentage | 0.00% | |||||||||||||||||
Company's share [Member] | Range 2 [Member] | ||||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||||
Annual Power Cost Variability, Percentage | 50.00% | |||||||||||||||||
Company's share [Member] | Range 3 [Member] | ||||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||||
Annual Power Cost Variability, Percentage | 10.00% | |||||||||||||||||
Company's share [Member] | Range 4 [Member] | ||||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||||
Annual Power Cost Variability, Percentage | 5.00% | |||||||||||||||||
Company's share [Member] | Range 1 [Member] | ||||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||||
Annual Power Cost Variability, Percentage | 100.00% | |||||||||||||||||
Under Recovery [Member] | Customers share [Member] | ||||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||||
Annual Power Cost Variability, Amount | 0 | |||||||||||||||||
Under Recovery [Member] | Customers share [Member] | Range 2 [Member] | ||||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||||
Annual Power Cost Variability, Percentage | 50.00% | |||||||||||||||||
Under Recovery [Member] | Customers share [Member] | Range 3 [Member] | ||||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||||
Annual Power Cost Variability, Percentage | 90.00% | |||||||||||||||||
Under Recovery [Member] | Customers share [Member] | Range 1 [Member] | ||||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||||
Annual Power Cost Variability, Percentage | 0.00% | |||||||||||||||||
Under Recovery [Member] | Company's share [Member] | ||||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||||
Annual Power Cost Variability, Amount | (8.6) | $ (3.1) | ||||||||||||||||
Under Recovery [Member] | Company's share [Member] | Range 2 [Member] | ||||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||||
Annual Power Cost Variability, Percentage | 50.00% | |||||||||||||||||
Under Recovery [Member] | Company's share [Member] | Range 3 [Member] | ||||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||||
Annual Power Cost Variability, Percentage | 10.00% | |||||||||||||||||
Under Recovery [Member] | Company's share [Member] | Range 1 [Member] | ||||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||||
Annual Power Cost Variability, Percentage | 100.00% | |||||||||||||||||
Over Recovery [Member] | Customers share [Member] | ||||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||||
Annual Power Cost Variability, Amount | $ 0 | |||||||||||||||||
Over Recovery [Member] | Customers share [Member] | Range 2 [Member] | ||||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||||
Annual Power Cost Variability, Percentage | 65.00% | |||||||||||||||||
Over Recovery [Member] | Customers share [Member] | Range 3 [Member] | ||||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||||
Annual Power Cost Variability, Percentage | 90.00% | |||||||||||||||||
Over Recovery [Member] | Customers share [Member] | Range 1 [Member] | ||||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||||
Annual Power Cost Variability, Percentage | 0.00% | |||||||||||||||||
Over Recovery [Member] | Company's share [Member] | Range 2 [Member] | ||||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||||
Annual Power Cost Variability, Percentage | 35.00% | |||||||||||||||||
Over Recovery [Member] | Company's share [Member] | Range 3 [Member] | ||||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||||
Annual Power Cost Variability, Percentage | 10.00% | |||||||||||||||||
Over Recovery [Member] | Company's share [Member] | Range 1 [Member] | ||||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||||
Annual Power Cost Variability, Percentage | 100.00% | |||||||||||||||||
Deferral Trigger [Member] [Member] | Minimum [Member] | ||||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||||
Annual Power Cost Variability, Amount | $ 30 | |||||||||||||||||
Deferral Trigger [Member] [Member] | Maximum [Member] | ||||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||||
Annual Power Cost Variability, Amount | $ 20 | |||||||||||||||||
Scenario, Forecast [Member] | Subsidiaries [Member] | ||||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||||
Regulated Utility, Allowed Rate of Return on Net Regulatory Assets and Liabilities | 7.74% | |||||||||||||||||
Regulated Utility, After-tax Allowed Rate of Return on Net Regulatory Assets and Liabilities | 6.69% | |||||||||||||||||
American Recovery and Reinvestment Tax Act of 2009, Grant, Overall Average Rate Reduction | 0.30% | |||||||||||||||||
American Recovery and Reinvestment Tax Act of 2009, Total Grant Pass Through Amount | $ (51.7) | |||||||||||||||||
Public Utilities, Rate Case, Approved Effective Common Equity in Capital Structure | 48.50% | |||||||||||||||||
Public Utilities, Rate Case, Approved Effective Return on Equity | 9.80% | |||||||||||||||||
Scenario, Forecast [Member] | Cost recovery mechanism [Member] | Natural Gas [Member] | ||||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||||
Public Utilities, Rate Case, Approved Effective Annual Rate Percentage Increase (Decrease) | 0.60% | |||||||||||||||||
Public Utilities, Rate Case, Approved Effective Annual Rate Increase (Decrease) | $ 5.4 |
Asset Retirement Obligation (De
Asset Retirement Obligation (Details) - Subsidiaries [Member] - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Opening balance | $ 200,345 | |
New asset retirement obligation recognized in the period | 0 | |
Liability adjustments | (136) | |
Revisions in estimated cash flows | (18,329) | |
Accretion expense | 2,746 | |
Closing balance | 184,626 | |
Colstrip Units 1 and 2 [Member] | ||
Decommissioning Liability, Noncurrent | 5,000 | $ 45,700 |
Colstrip Units 3 and 4 [Member] | ||
Decommissioning Liability, Noncurrent | $ 13,300 | $ 37,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | |
Loss Contingencies [Line Items] | |||
Regulatory Assets | $ 175.2 | $ 176.8 | |
Estimated Litigation Liability | $ 3.2 | ||
Loss Contingency, Allegations | 1.3 | ||
Loss Contingency, Accrual, Current | $ 3.2 | ||
Loss Contingency, Damages Awarded, Value | 2.8 | ||
Loss Contingency Accrual, Payments | 1.5 | ||
Contractual Obligation | $ 703.2 | ||
Colstrip Units 1 and 2 [Member] | |||
Loss Contingencies [Line Items] | |||
Ownership interest (percent) | 50.00% | ||
Colstrip Units 3 and 4 [Member] | |||
Loss Contingencies [Line Items] | |||
Ownership interest (percent) | 25.00% | ||
Pending Litigation [Member] | |||
Loss Contingencies [Line Items] | |||
Litigation claims accrual | $ 0.5 | $ 0.7 |