MDU RESOURCES GROUP INC
For the period ended Mar 31, 2024. Filed May 2, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2024 · Filed May 2, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
. Regulatory assets and liabilities
Index
Note 10 -Regulatory assets and liabilities
The following table summarizes the individual components of unamortized regulatory assets and liabilities:
| EstimatedRecovery or RefundPeriod as ofMarch 31, 2024 · * · March 31, 2024 · March 31, 2023 · December 31, 2023 | ||||
|---|---|---|---|---|
| (In thousands) | ||||
| Regulatory assets: | ||||
| Current: | ||||
| Natural gas costs recoverable through rate adjustments | Up to 1 year | $110,481 | $198,166 | $98,844 |
| Electric fuel and purchased power deferral | Up to 1 year | 17,061 | 3,279 | 33,918 |
| Conservation programs | Up to 1 year | 13,735 | 8,599 | 14,425 |
| Environmental compliance programs | Up to 1 year | 7,443 | 1,191 | 5,525 |
| Cost recovery mechanisms | Up to 1 year | 6,454 | 3,954 | 9,153 |
| Other | Up to 1 year | 3,440 | 1,129 | 10,627 |
| 158,614 | 216,318 | 172,492 | ||
| Noncurrent: | ||||
| Pension and postretirement benefits | ** | 142,511 | 143,349 | 142,511 |
| Cost recovery mechanisms | Up to 25 years | 84,546 | 65,732 | 85,944 |
| Environmental compliance programs | - | 50,372 | 21,942 | 66,806 |
| Plant costs/asset retirement obligations | Over plant lives | 45,702 | 44,131 | 46,009 |
| Natural gas costs recoverable through rate adjustments | Up to 2 years | 25,915 | — | 55,493 |
| Manufactured gas plant site remediation | - | 25,851 | 26,605 | 26,127 |
| Taxes recoverable from customers | Over plant lives | 12,331 | 12,198 | 12,249 |
| Electric fuel and purchased power deferral | Up to 2 years | 15,612 | — | — |
| Long-term debt refinancing costs | Up to 36 years | 2,453 | 3,041 | 2,600 |
| Plant to be retired | - | 294 | 21,072 | 772 |
| Other | Up to 15 years | 8,846 | 11,430 | 8,588 |
| 414,433 | 349,500 | 447,099 | ||
| Total regulatory assets | $573,047 | $565,818 | $619,591 | |
| Regulatory liabilities: | ||||
| Current: | ||||
| Natural gas costs refundable through rate adjustments | Up to 1 year | $54,282 | $6,331 | $43,161 |
| Provision for rate refund | Up to 1 year | 6,517 | 1,115 | 6,866 |
| Cost recovery mechanisms | Up to 1 year | 5,642 | 2,926 | 6,284 |
| Conservation programs | Up to 1 year | 3,576 | 3,834 | 2,130 |
| Margin sharing | Up to 1 year | 2,869 | — | 5,243 |
| Taxes refundable to customers | Up to 1 year | 1,991 | 1,513 | 2,149 |
| Refundable fuel and electric costs | Up to 1 year | 1,122 | 1,179 | 263 |
| Electric fuel and purchased power deferral | Up to 1 year | 746 | 9,630 | — |
| Other | Up to 1 year | 13,370 | 17,867 | 4,665 |
| 90,115 | 44,395 | 70,761 | ||
| Noncurrent: | ||||
| Plant removal and decommissioning costs | Over plant lives | 220,519 | 214,467 | 220,147 |
| Taxes refundable to customers | Over plant lives | 190,850 | 200,879 | 193,578 |
| Environmental compliance programs | - | 63,746 | — | 61,941 |
| Cost recovery mechanisms | Up to 18 years | 24,269 | 16,313 | 21,791 |
| Accumulated deferred investment tax credit | Over plant lives | 16,129 | 13,996 | 15,740 |
| Pension and postretirement benefits | ** | 6,044 | 7,376 | 6,044 |
| Other | Up to 14 years | 1,927 | 1,638 | 1,809 |
| 523,484 | 454,669 | 521,050 | ||
| Total regulatory liabilities | $613,599 | $499,064 | $591,811 | |
| Net regulatory position | $(40,552) | $66,754 | $27,780 | |
*Estimated recovery or refund period for amounts currently being recovered or refunded in rates to customers.
** Recovered as expense is incurred or cash contributions are made.
Index
At March 31, 2024 and 2023, and December 31, 2023, approximately $191.7 million, $255.6 million and $194.3 million, respectively, of regulatory assets were not earning a rate of return; however, these regulatory assets are expected to be recovered from customers in future rates. These assets are largely comprised of the unfunded portion of pension and postretirement benefits, asset retirement obligations, certain pipeline integrity costs and the estimated future cost of manufactured gas plant site remediation.
If, for any reason, the Company's regulated businesses cease to meet the criteria for application of regulatory accounting for all or part of their operations, the regulatory assets and liabilities relating to those portions ceasing to meet such criteria would be written off and included in the statement of income or accumulated other comprehensive loss in the period in which the discontinuance of regulatory accounting occurs.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.