Northwest Natural Holding Co
For the period ended Jun 30, 2024. Filed Aug 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.
Jun 30, 2024 · Filed Aug 2, 2024
NWN$51.75-0.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-06.
0001733998-24-000075
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-02.
0001733998-24-000093
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 303 previous paragraphs and 363 current paragraphs.
202 unchanged; 81 reworded; 54 added; 16 removed; 4 previous and 26 current paragraphs rearranged.
Tables are not compared: 30 previous and 31 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (54)
Current report
•Reported a net loss of $2.8 million or $0.07 per share (diluted) for the second quarter of 2024, compared to net income of $1.2 million or $0.03 per share (diluted) in the prior year;
Current report
Key quarter-to-date financial highlights for NW Holdings include:
Current report
Key quarter-to-date financial highlights for NW Natural include:
Current report
Consolidated net income decreased $2.2 million at NW Natural primarily due to the following factors:
Current report
•$4.3 million decrease in other income, net primarily due to higher pension costs and lower interest income from invested cash and the equity portion of Allowance for Funds Used During Construction (AFUDC); and
Current report
•$3.5 million decrease in operations and maintenance expenses due to lower payroll, benefits and contract labor costs, partially offset by higher amortization expense related to cloud computing arrangements; and
Current report
Consolidated net income decreased $4.0 million at NW Holdings primarily due to the following factors:
Current report
•$1.8 million decrease in other net income primarily reflecting a gain from a settlement recognized in the prior year.
Current report
SIX MONTHS ENDED JUNE 30, 2024 COMPARED TO JUNE 30, 2023.
Current report
Consolidated net income decreased $10.2 million at NW Natural primarily due to the following factors:
Current report
•$2.7 million increase in depreciation expense due to additional capital investments;
Current report
•$1.3 million decrease in asset management revenue, partially offset by
Current report
•$3.4 million decrease in operations and maintenance expenses due to lower benefit costs and other employee-related expenses, partially offset by the amortization of deferred balances (which is primarily offset in revenues);
Current report
Consolidated net income decreased $11.9 million at NW Holdings primarily due to the following factors:
Current report
•$1.7 million decrease in other net income primarily as a result of a gain from a settlement recognized in the prior year and higher interest expense at NW Holdings, partially offset by lower contributions to fund community outreach initiatives.
Current report
THREE MONTHS ENDED JUNE 30, 2024 COMPARED TO JUNE 30, 2023. The primary factors contributing to the $2.7 million, or $0.07 per share, increase in NGD net loss were as follows:
Current report
•$1.8 million increase in depreciation expense due to additional capital investments; and
Current report
•$0.7 million increase in general taxes driven by higher property taxes and regulatory commission fees; partially offset by
Current report
•$3.5 million decrease in operations and maintenance expenses due to lower payroll, benefits and contract labor costs, partially offset by higher amortization expense related to cloud computing arrangements; and
Current report
•$2.8 million increase in depreciation expense due to additional capital investments;
Current report
•$3.8 million decrease in operations and maintenance expenses due to lower benefit costs and other employee-related expenses, partially offset by the amortization of deferred balances (which is mostly offset in revenues); and
Current report
THREE MONTHS ENDED JUNE 30, 2024 COMPARED TO JUNE 30, 2023. Other net income increased $0.5 million at NW Natural and decreased $1.3 million at NW Holdings. The increase at NW Natural was primarily due to higher asset management revenue in the current period. The decrease at other NWHoldings was driven by a gain from a settlement recognized in the prior year.
Current report
THREE MONTHS ENDED JUNE 30, 2024 COMPARED TO JUNE 30, 2023. Operations and maintenance expense decreased $3.5 million at NW Natural. The decrease at NW Natural was driven by the following:
Current report
•$2.4 million decrease related to lower payroll and benefit costs and other employee-related expenses; and
Current report
•$1.2 million decrease in contract labor costs; partially offset by
Current report
•$0.5 million increase in amortization expense related to cloud computing arrangements; and
Current report
Operations and maintenance expense decreased $1.9 million at NW Holdings primarily due to the following:
Current report
•$1.0 million decrease in contract labor costs; partially offset by
Current report
•$1.1 million increase in amortization expense related to cloud computing arrangements.
Current report
Operations and maintenance expense decreased $0.1 million at NW Holdings primarily due to the following:
Current report
Depreciation expense increased $4.1 million at NW Holdings, primarily due to a $1.4 million increase in other NW Holdings depreciation related to capital expenditures at water and wastewater utilities and a $2.7 million increase at NW Natural as discussed above.
Current report
Other income, net decreased $6.6 million at NW Holdings driven by the decrease at NW Natural discussed above and a $2.7 million gain from a settlement recognized in the prior year.
Current report
Other income (expense), net primarily consists of regulatory interest, pension and other postretirement non-service costs, gains from company-owned life insurance, the equity portion of AFUDC, interest income and donations.
Current report
As of May 1, 2024, core customers recalled non-utility Mist gas storage capacity of 0.2 million therms per day of deliverability and 1.15 Bcf of associated storage capacity to serve core utility customer needs. Customer impacts of this recall will begin on November 1, 2024, when the next PGA year begins, pending approval of the OPUC.
Current report
On July 24, 2024, NW Natural, the OPUC staff, the Oregon Citizens’ Utility Board (CUB), the Alliance of Western Energy Consumers (AWEC), the Coalition of Communities of Color, Climate Solutions, Verde, Columbia Riverkeeper, Oregon Environmental Council, Community Energy Project, and Sierra Club (Coalition), which comprise all of the parties to the rate case, filed a stipulation (Second Stipulation) with the OPUC which addresses the majority of issues in the Rate Case.
Current report
Prior to the Second Stipulation, NW Natural, the OPUC staff, CUB and AWEC reached a partial settlement on the cost of long-term debt of 4.712% (First Stipulation and together with the Second Stipulation, the Stipulations).
Current report
The Second Stipulation provides for a total revenue requirement increase of $95.0 million over revenues from existing rates, which includes $9.6 million related to an updated depreciation study, subject to completion of capital projects identified as being placed in service prior to the rate effective date. The revenue requirement is based on the following assumptions:
Current report
•Return on equity of 9.4%;
Current report
•Cost of capital of 7.056%; and
Current report
•Average rate base of $2.11 billion or an increase of $357 million since the last rate case.
Showing the first 40 of 54 passages. Open the source sections for the rest.
Removed paragraphs (16)
Previous report
•Oregon customers received bill credits totaling nearly $30 million in early 2024 due to our Mist storage assets and pipeline capacity management;
Previous report
•NW Holdings issued $150.0 million of unsecured senior bonds in March 2024;
Previous report
•Customers and the region relied on the gas system during the winter storm in January with a total of 9.0 million therms delivered on Jan. 13, 2024, including 8.0 million therms provided to homes and businesses achieving a new peak day record, and setting a new withdrawal record from our on-system gas storage facility in Mist, Oregon; and
Previous report
•$1.5 million increase due to higher compensation costs; partially offset by
Previous report
•$0.1 million increase in operations and maintenance expense at NW Natural as discussed above; and
Previous report
•Capital structure of 50% long-term debt and 50% equity;
Previous report
•Return on equity of 10.1%;
Previous report
•Cost of capital of 7.406%; and
Previous report
•Average rate base of $2.14 billion.
Previous report
The filing includes effects of inflation, an updated depreciation study, and an increase in average rate base of $381 million compared to the last rate case for several long-planned investments by NW Natural including the following:
Previous report
•Supporting reinforcement, safety and reliability of NW Natural's distribution systems and operating facilities;
Previous report
•Upgrading technology to, among other things, further modernize NW Natural’s information technology infrastructure, enhance cybersecurity protections, and modernize metering infrastructure; and
Previous report
•Investing in components of NW Natural’s Mist and liquified natural gas storage facilities, which support service during winter heating months.
Previous report
NW Natural’s filing is under review with the OPUC and other stakeholders. The process is anticipated to take up to 10 months to complete with new rates expected to take effect November 1, 2024.
Previous report
•In March 2024, Sunriver Water filed a general rate case with the OPUC, the effective date of which the OPUC suspended until February 1, 2025.
Previous report
Interest Rate Swap Agreements
Reworded paragraphs (81)
Previous wording
The following is management’s assessment of NW Holdings' and NW Natural's financial condition, including the principal factors that affect results of operations. The discussion refers to the consolidated results for the three months ended March 31, 2024 and 2023 of NW Holdings, the substantial majority of which consist of the operating results of NW Natural. When significant activity exists at NW Holdings that does not exist at NW Natural, additional disclosure has been provided. References in this discussion to "Notes" are to the Notes to Unaudited Consolidated Financial Statements in this report. A significant portion of the business results are seasonal in nature, and, as such, the results of operations for the three month period is not necessarily indicative of expected fiscal year results. Therefore, this discussion should be read in conjunction with NW Holdings' and NW Natural's 2023 Annual Report on Form 10-K, as applicable (2023 Form 10-K).
Current wording
The following is management’s assessment of NW Holdings' and NW Natural's financial condition, including the principal factors that affect results of operations. The discussion refers to the consolidated results for the three and six months ended June 30, 2024 and 2023 of NW Holdings, the substantial majority of which consist of the operating results of NW Natural. When significant activity exists at NW Holdings that does not exist at NW Natural, additional disclosure has been provided. References in this discussion to "Notes" are to the Notes to Unaudited Consolidated Financial Statements in this report. A significant portion of the business results are seasonal in nature, and, as such, the results of operations for the three month period is not necessarily indicative of expected fiscal year results. Therefore, this discussion should be read in conjunction with NW Holdings' and NW Natural's 2023 Annual Report on Form 10-K, as applicable (2023 Form 10-K).
Previous wording
•Reported net income of $63.8 million or $1.69 per share (diluted) for the first three months of 2024, compared to net income of $71.7 million or $2.01 per share (diluted) in the prior year;
Current wording
•Reported net income of $61.0 million or $1.60 per share (diluted) for the first six months of 2024, compared to net income of $72.9 million or $2.03 per share (diluted) in the prior year;
Previous wording
•Added nearly 15,000 gas and water utility connections during the past twelve months for a combined growth rate of 1.7% at March 31, 2024 mainly driven by strong water acquisitions;
Current wording
•Added nearly 16,000 gas and water utility connections during the past twelve months for a combined growth rate of 1.8% at June 30, 2024 mainly driven by strong water acquisitions; and
Previous wording
•Invested $82.2 million in our utility systems in the first three months of 2024 in an effort to achieve greater reliability and resiliency.
Current wording
•Invested nearly $200 million in our utility systems in the first six months of 2024 in an effort to achieve greater reliability and resiliency.
Previous wording
•$1.0 million increase in depreciation expense due to additional capital investments; partially offset by
Current wording
•$1.8 million increase in depreciation expense due to additional capital investments; partially offset by
Previous wording
•$0.5 million increase in NGD segment margin driven by the amortization of deferred balances (which is mostly offset in operations and maintenance expenses and interest expense) and customer growth, partially offset by warmer than average weather for customers not covered under the weather normalization mechanism.
Current wording
◦amortization of deferred balances (which is mostly offset in operations and maintenance expenses and interest expense) and customer growth; partially offset by
Previous wording
Consolidated net income decreased $7.8 million at NW Holdings primarily due to the $8.0 million decrease in consolidated net income at NW Natural as discussed above.
Current wording
•$2.2 million decrease in consolidated net income at NW Natural as discussed above; and
Previous wording
•$3.8 million decrease in other income, net primarily due to higher pension costs and lower interest income from invested cash and the equity portion of AFUDC;
Current wording
•$8.0 million decrease in other income, net primarily due to higher pension costs and lower interest income from invested cash and the equity portion of AFUDC;
Previous wording
•$1.5 million increase in interest expense, net due to higher long-term debt balances;
Current wording
•$1.8 million increase in interest expense, net due to higher long-term debt balances;
Previous wording
•$1.1 million increase in general taxes primarily driven by higher regulatory commission fees; and
Current wording
•$1.8 million increase in general taxes primarily driven by higher regulatory commission fees; and
Previous wording
•$0.7 million decrease in income tax expense due to lower pre-tax income; and
Current wording
•$1.0 million decrease in income tax expense due to lower pre-tax income; and
Previous wording
See the discussion in "Results of Operations", "Regulatory Matters" and "Financial Condition" below for additional detail regarding all significant activity that occurred during the first quarter of 2024.
Current wording
See the discussion in "Results of Operations", "Regulatory Matters" and "Financial Condition" below for additional detail regarding all significant activity that occurred during the second quarter of 2024.
Previous wording
•$3.8 million decrease in other income, net driven by higher pension non-service costs and lower interest income from invested cash and the equity portion of AFUDC;
Current wording
•$4.2 million decrease in other income, net driven by higher pension non-service costs and lower interest income from invested cash and the equity portion of AFUDC;
Previous wording
•$0.5 million increase in NGD margin due to:
Current wording
•$0.4 million increase in NGD margin due to:
Previous wording
THREE MONTHS ENDED MARCH 31, 2024 COMPARED TO MARCH 31, 2023. The primary factors contributing to the $6.2 million, or $0.28 per share, decrease in NGD net income were as follows:
Current wording
SIX MONTHS ENDED JUNE 30, 2024 COMPARED TO JUNE 30, 2023. The primary factors contributing to the $9.0 million, or $0.35 per share, decrease in NGD net income were as follows:
Previous wording
•$1.5 million increase in interest expense, net primarily due to higher long-term debt balances;
Current wording
•$1.9 million increase in interest expense, net primarily due to higher long-term debt balances; and
Previous wording
•$1.1 million increase in general taxes primarily driven by higher regulatory commission fees; and
Current wording
•$1.8 million increase in general taxes primarily driven by higher regulatory commission fees; partially offset by
Previous wording
•$2.9 million increase due to the amortization of deferred balances primarily related to COVID-19, cybersecurity, and ERP upgrades (which is mostly offset in operations and maintenance expenses and interest expense);
Current wording
•$5.4 million increase due to the amortization of deferred balances primarily related to COVID-19, cybersecurity, and ERP upgrades (which is mostly offset in operations and maintenance expenses and interest expense);
Previous wording
•$2.6 million increase driven by customer growth and the estimated impact of an additional day in February due to the leap year among other miscellaneous items; partially offset by
Current wording
•$1.6 million increase driven by customer growth and the estimated impact of an additional day in February due to the leap year among other miscellaneous items; partially offset by
Previous wording
•$3.5 million decrease due to lower usage from warmer comparative weather for customers not covered under the weather normalization mechanism; and
Current wording
•$4.5 million decrease due to lower usage from warmer comparative weather for customers not covered under the weather normalization mechanism; and
Previous wording
•$1.5 million decline in gains on the Oregon gas cost incentive sharing mechanism due to lower commodity price volatility and higher than estimated gas costs during the cold weather event in January 2024.
Current wording
•$1.6 million decline in gains on the Oregon gas cost incentive sharing mechanism due to tighter market spreads compared to the PGA and higher than estimated gas costs during the cold weather event in January 2024.
Previous wording
For the three months ended March 31, 2024, total NGD volumes sold and delivered decreased 34.0 million therms over the same period in 2023 primarily due to 9% warmer than average weather in the first three months of 2024 compared to 5% colder than average weather in the prior period.
Current wording
For the six months ended June 30, 2024, total NGD volumes sold and delivered decreased 41.4 million therms over the same period in 2023 primarily due to 13% warmer than average weather in the first six months of 2024 compared to 2% colder than average weather in the prior period.
Previous wording
THREE MONTHS ENDED MARCH 31, 2024 COMPARED TO MARCH 31, 2023. Residential and commercial margin increased $2.3 million compared to the prior period. The increase was primarily driven by 0.6% growth in residential customer meters. Volumes decreased 28.7 million therms due to lower usage driven by comparatively warmer weather.
Current wording
THREE MONTHS ENDED JUNE 30, 2024 COMPARED TO JUNE 30, 2023. Residential and commercial margin increased $0.6 million compared to the prior period. The increase was primarily driven by 0.7% growth in residential customer meters. Volumes decreased 5.7 million therms due to lower usage driven by comparatively warmer weather.
Previous wording
THREE MONTHS ENDED MARCH 31, 2024 COMPARED TO MARCH 31, 2023. Industrial sales and transportation margin decreased $0.2 million compared to the prior period primarily driven lower sales and transportation volumes. Volumes decreased 5.4 million therms primarily due to lower usage from multiple customers, most notably in the pulp and paper, forest products, and food processing industries, partially offset by higher usage from customers in the chemical manufacturing industry.
Current wording
THREE MONTHS ENDED JUNE 30, 2024 COMPARED TO JUNE 30, 2023. Industrial sales and transportation margin decreased $0.1 million compared to the prior period primarily driven by lower sales volumes. Volumes decreased 1.6 million therms primarily due to lower usage from multiple customers, most notably in the chemical manufacturing and forest products industries, partially offset by higher usage from the pulp and paper industry.
Previous wording
THREE MONTHS ENDED MARCH 31, 2024 COMPARED TO MARCH 31, 2023. Cost of gas decreased $30.0 million primarily due to a 7% decrease in average cost of gas and a 9% decrease in volumes sold. Volumes sold decreased 31.7 million therms due to lower usage driven by comparatively warmer weather. The gain from the Oregon gas cost incentive sharing mechanism declined
Current wording
THREE MONTHS ENDED JUNE 30, 2024 COMPARED TO JUNE 30, 2023. Cost of gas decreased $29.5 million primarily due to a 26% decrease in average cost of gas and a 5% decrease in volumes sold. Volumes sold decreased 7.5 million therms due to lower usage driven by comparatively warmer weather.
Previous wording
$1.5 million due to lower commodity price volatility and higher than estimated gas costs during the cold weather event in January 2024.
Current wording
SIX MONTHS ENDED JUNE 30, 2024 COMPARED TO JUNE 30, 2023. Cost of gas decreased $59.5 million primarily due to a 13% decrease in average cost of gas and a 8% decrease in volumes sold. Volumes sold decreased 39.2 million therms due to lower usage driven by comparatively warmer weather. The gain from the Oregon gas cost incentive sharing mechanism declined $1.6 million due to tighter market spreads compared to the PGA and higher than estimated gas costs during the cold weather event in January 2024.
Previous wording
THREE MONTHS ENDED MARCH 31, 2024 COMPARED TO MARCH 31, 2023. Other regulated services margin increased $0.2 million compared to the prior period due to an increase in storage service revenue from the North Mist facility.
Current wording
SIX MONTHS ENDED JUNE 30, 2024 COMPARED TO JUNE 30, 2023. Other regulated services margin increased $0.3 million compared to the prior period due to an increase in storage service revenue from the North Mist facility.
Previous wording
THREE MONTHS ENDED MARCH 31, 2024 COMPARED TO MARCH 31, 2023. Other net income decreased $1.7 million at NW Natural and $1.6 million at NW Holdings. The decrease at NW Natural was primarily due to lower asset management revenue due to favorable market conditions in the prior period that did not recur. The increase at other NW Holdings was driven by lower contributions to fund community outreach programs, partially offset by higher interest expense at the holding and water companies.
Current wording
SIX MONTHS ENDED JUNE 30, 2024 COMPARED TO JUNE 30, 2023. Other net income decreased $1.2 million at NW Natural and $2.9 million at NW Holdings. The decrease at NW Natural was primarily due to lower asset management revenue due to favorable market conditions in the prior period that did not recur. The decrease at other NW Holdings was driven by a gain from a settlement recognized in the prior year and higher interest expense at NW Holdings, partially offset by lower contributions to fund community outreach programs.
Previous wording
THREE MONTHS ENDED MARCH 31, 2024 COMPARED TO MARCH 31, 2023. Operations and maintenance expense increased $0.1 million at NW Natural primarily due to the following:
Current wording
SIX MONTHS ENDED JUNE 30, 2024 COMPARED TO JUNE 30, 2023. Operations and maintenance expense decreased $3.4 million at NW Natural primarily due to the following:
Previous wording
•$2.7 million decrease related to lower benefit costs.
Current wording
•$4.8 million decrease related to lower benefit costs and other employee-related expenses; and
Previous wording
•$1.6 million increase due to the amortization of deferred balances (which is mostly offset in revenues) primarily related to COVID-19, cybersecurity and information technology system upgrades; and
Current wording
•$2.0 million increase due to the amortization of deferred balances (which is mostly offset in revenues) primarily related to COVID-19, cybersecurity and information technology system upgrades; and
Previous wording
•$1.7 million increase in other NW Holdings operations and maintenance expense primarily due to costs associated with recently acquired water and wastewater subsidiaries, partially offset by lower business development costs at the holding company.
Current wording
•$3.3 million increase in other NW Holdings operations and maintenance expense primarily due to costs associated with recently acquired water and wastewater subsidiaries, partially offset by lower business development costs at the holding company.
Previous wording
THREE MONTHS ENDED MARCH 31, 2024 COMPARED TO MARCH 31, 2023. Depreciation expense increased $1.0 million at NW Natural primarily due to additional capital investments in the distribution system, such as installing new mains and services and replacing regulating equipment, as well as upgrading and improving structures. In addition, NW Natural continued to invest in information technology projects in 2023 and 2024.
Current wording
THREE MONTHS ENDED JUNE 30, 2024 COMPARED TO JUNE 30, 2023. Depreciation expense increased $1.8 million at NW Natural primarily due to additional capital investments in the distribution system, such as installing new mains and meters, replacing equipment, and upgrading and improving facilities. In addition, NW Natural continued to invest in information technology projects in 2023 and 2024.
Previous wording
Depreciation expense increased $1.6 million at NW Holdings, primarily due to a $0.7 million increase in other NW Holdings depreciation related to water and wastewater subsidiaries and a $1.0 million increase at NW Natural as discussed above.
Current wording
Depreciation expense increased $2.5 million at NW Holdings, primarily due to a $0.7 million increase in other NW Holdings depreciation related to capital expenditures at water and wastewater utilities and a $1.8 million increase at NW Natural as discussed above.
Previous wording
THREE MONTHS ENDED MARCH 31, 2024 COMPARED TO MARCH 31, 2023. Other income, net decreased $3.8 million at NW Natural primarily due to $1.9 million of higher pension non-service costs and lower interest income from a lower level of invested cash and the equity portion of AFUDC. Costs related to our defined benefit pension plan for the three months ended March 31, 2024 increased compared to the prior year due to an increase in amortization of actuarial losses.
Current wording
THREE MONTHS ENDED JUNE 30, 2024 COMPARED TO JUNE 30, 2023. Other income, net decreased $4.3 million at NW Natural primarily due to $1.5 million of higher pension non-service costs, $1.3 million of lower interest income from a lower level of invested cash and a $0.8 million decline from the equity portion of AFUDC. Costs related to our defined benefit pension plan for the three months ended June 30, 2024 increased compared to the prior year due to an increase in amortization of actuarial losses.
Previous wording
Other income, net decreased $2.7 million at NW Holdings driven by the decrease at NW Natural discussed above, partially offset by lower contributions to fund community outreach initiatives at NW Holdings.
Current wording
Other income, net decreased $9.4 million at NW Holdings driven by the decrease at NW Natural discussed above and a $2.7 million gain from a settlement recognized in the prior year, partially offset by lower contributions to fund community outreach initiatives at NW Holdings.
Previous wording
THREE MONTHS ENDED MARCH 31, 2024 COMPARED TO MARCH 31, 2023. Interest expense, net increased $1.5 million at NW Natural primarily due to higher interest expense on a higher level of long-term debt.
Current wording
THREE MONTHS ENDED JUNE 30, 2024 COMPARED TO JUNE 30, 2023. Interest expense, net increased $0.3 million at NW Natural primarily due to higher interest expense on a higher level of long-term debt.
Previous wording
Interest expense, net increased $2.2 million at NW Holdings due to the increase at NW Natural discussed above and higher interest expense on a higher level of long-term debt at NW Holdings and NWN Water.
Current wording
Interest expense, net increased $2.6 million at NW Holdings due to the increase at NW Natural discussed above and higher interest expense at NW Holdings.
Previous wording
THREE MONTHS ENDED MARCH 31, 2024 COMPARED TO MARCH 31, 2023. Income tax expense decreased $0.7 million at NW Natural and $0.8 million at NW Holdings. The decrease in income tax expense is primarily due to lower pre-tax income in the current period compared to the prior year.
Current wording
THREE MONTHS ENDED JUNE 30, 2024 COMPARED TO JUNE 30, 2023. Income tax expense decreased $0.3 million at NW Natural and $1.1 million at NW Holdings. The decrease in income tax expense is primarily due to lower pre-tax income in the current period compared to the prior year.
Previous wording
MIST INTERSTATE GAS STORAGE. NW Natural's interstate storage activity at Mist is subject to regulation by the OPUC, WUTC, and the Federal Energy Regulatory Commission (FERC) with respect to, among other matters, rates and terms of service. The OPUC also regulates intrastate storage services at Mist, while FERC regulates interstate storage services at Mist. The FERC uses a maximum cost of service model which allows for gas storage prices to be set at or below the cost of service as approved by each agency in their last regulatory filing. The OPUC Schedule 80 rates are tied to the FERC rates, and are updated whenever NW Natural modifies FERC maximum rates.
Current wording
MIST INTERSTATE GAS STORAGE. NW Natural's interstate storage activity at Mist is subject to regulation by the OPUC, WUTC, and the Federal Energy Regulatory Commission (FERC) with respect to, among other matters, rates and terms of service. The OPUC also regulates intrastate storage services at Mist, while FERC regulates interstate storage services at Mist. The FERC uses a maximum cost of service model which allows for gas storage prices to be set at or below the cost of service as approved by each agency in their last regulatory filing. The OPUC Schedule 80 rates are tied to the FERC rates, and are updated whenever NW Natural modifies FERC maximum rates. See "Most Recent Completed Rate Cases" below.
Showing the first 40 of 81 pairs. Open the source sections for the rest.
Rearranged current paragraphs (26)
Current report — wording carried from elsewhere
•$0.4 million increase in NGD segment margin driven by:
Current report — wording carried from elsewhere
◦warmer than average weather for customers not covered under the weather normalization mechanism.
Current report — wording carried from elsewhere
•$0.9 million increase in NGD segment margin driven by:
Current report — wording carried from elsewhere
◦the amortization of deferred balances (which is primarily offset in operations and maintenance expenses and interest expense) and customer growth; partially offset by
Current report — wording carried from elsewhere
◦warmer than average weather for customers not covered under the weather normalization mechanism; anda decline in gains on the Oregon gas cost incentive sharing mechanism.
Current report — wording carried from elsewhere
•$10.2 million decrease in consolidated net income at NW Natural as discussed above; and
Current report — wording carried from elsewhere
•$2.5 million increase due to the amortization of deferred balances primarily related to COVID-19, cybersecurity, and ERP upgrades (which is mostly offset in operations and maintenance expenses and interest expense); and
Current report — wording carried from elsewhere
•$0.4 million increase driven by customer growth; partially offset by
Current report — wording carried from elsewhere
•$2.5 million decrease due to lower usage from warmer comparative weather for customers not covered under the weather normalization mechanism among other miscellaneous items.
Current report — wording carried from elsewhere
For the three months ended June 30, 2024, total NGD volumes sold and delivered decreased 7.3 million compared to the same period in 2023 primarily due to 30% warmer than average weather in the second quarter of 2024 compared to 8% warmer than average weather in the prior period.
Current report — wording carried from elsewhere
•$8.0 million decrease in other income, net driven by higher pension non-service costs and lower interest income from invested cash and the equity portion of AFUDC;
Current report — wording carried from elsewhere
•$0.9 million increase in NGD margin due to:
Current report — wording carried from elsewhere
SIX MONTHS ENDED JUNE 30, 2024 COMPARED TO JUNE 30, 2023. Residential and commercial margin increased $2.8 million compared to the prior period. The increase was primarily driven by 0.7% growth in residential customer meters. Volumes decreased 34.4 million therms due to lower usage driven by comparatively warmer weather.
Current report — wording carried from elsewhere
SIX MONTHS ENDED JUNE 30, 2024 COMPARED TO JUNE 30, 2023. Industrial sales and transportation margin decreased $0.3 million compared to the prior period primarily driven by lower sales and transportation volumes. Volumes decreased 7.0 million therms primarily due to lower usage from multiple customers, most notably in the pulp and paper, forest products, and food processing industries.
Current report — wording carried from elsewhere
THREE MONTHS ENDED JUNE 30, 2024 COMPARED TO JUNE 30, 2023. Other regulated services margin increased $0.2 million compared to the prior period due to an increase in storage service revenue from the North Mist facility. See Note 7 for information regarding North Mist expansion lease accounting.
Current report — wording carried from elsewhere
•$0.4 million increase due to the amortization of deferred balances (which is mostly offset in revenues) primarily related to COVID-19, cybersecurity and information technology system upgrades.
Current report — wording carried from elsewhere
•$3.5 million decrease in operations and maintenance expense at NW Natural as discussed above; partially offset by
Current report — wording carried from elsewhere
•$1.6 million increase in other NW Holdings operations and maintenance expense primarily due to costs associated with recently acquired water and wastewater subsidiaries.
Current report — wording carried from elsewhere
•$3.4 million decrease in operations and maintenance expense at NW Natural as discussed above; partially offset by
Current report — wording carried from elsewhere
SIX MONTHS ENDED JUNE 30, 2024 COMPARED TO JUNE 30, 2023. Depreciation expense increased $2.7 million at NW Natural primarily due to additional capital investments in the distribution system, such as installing new mains and meters, replacing equipment, and upgrading and improving facilities. In addition, NW Natural continued to invest in information technology projects in 2023 and 2024.
Current report — wording carried from elsewhere
SIX MONTHS ENDED JUNE 30, 2024 COMPARED TO JUNE 30, 2023. Other income, net decreased $8.0 million at NW Natural primarily due to $3.4 million of higher pension non-service costs, $1.7 million of lower interest income from a lower level of invested cash and a $1.1 million decline from the equity portion of AFUDC. Costs related to our defined benefit pension plan for the six months ended June 30, 2024 increased compared to the prior year due to an increase in amortization of actuarial losses.
Current report — wording carried from elsewhere
Interest expense, net increased $0.3 million at NW Holdings due to the increase at NW Natural discussed above.
Current report — wording carried from elsewhere
SIX MONTHS ENDED JUNE 30, 2024 COMPARED TO JUNE 30, 2023. Interest expense, net increased $1.8 million at NW Natural primarily due to higher interest expense on a higher level of long-term debt.
Current report — wording carried from elsewhere
SIX MONTHS ENDED JUNE 30, 2024 COMPARED TO JUNE 30, 2023. Income tax expense decreased $1.0 million at NW Natural and $1.9 million at NW Holdings. The decrease in income tax expense is primarily due to lower pre-tax income in the current period compared to the prior year.
Current report — wording carried from elsewhere
•Capital structure of 50% common equity and 50% long-term debt;
Current report — wording carried from elsewhere
In addition, there are certain OPUC notice requirements for dividends in excess of 5% of NW Natural’s retained earnings, or more than 10% of its retained earnings over a six-month period, and for special cash dividends paid in addition to regularly quarterly dividends.
Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
Consolidated net income decreased $8.0 million at NW Natural primarily due to the following factors:
Previous report — wording carried elsewhere
•$1.0 million increase in depreciation expense due to additional capital investments; partially offset by
Previous report — wording carried elsewhere
Operations and maintenance expense increased $1.8 million at NW Holdings primarily due to the following:
Previous report — wording carried elsewhere
Similarly, other federal agencies and regulations, including but not limited to: the U.S. Department of Treasury, Federal Acquisitions Regulations, and others have indicated impending regulatory actions related to climate change. To the extent these agencies adopt final rules as proposed or in modified form, we or our customers could incur increased costs. These could include internal costs as well as external costs such as the cost of independent experts to provide attestation reports on our GHG emissions data and increased audit costs.