Northwest Natural Holding Co
For the period ended Sep 30, 2024. Filed Nov 12, 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.
Sep 30, 2024 · Filed Nov 12, 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 2024-06-30; filed 2024-08-02.
0001733998-24-000093
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-12.
0001733998-24-000125
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 363 previous paragraphs and 366 current paragraphs.
213 unchanged; 119 reworded; 27 added; 21 removed; 10 previous and 7 current paragraphs rearranged.
Tables are not compared: 31 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 (27)
Current report
•EDL completed first unregulated RNG facility and commenced delivery of RNG to NW Natural Renewables; and
Current report
Consolidated net income decreased $4.9 million at NW Natural primarily due to the following factors:
Current report
•$1.3 million increase in operations and maintenance expenses due to higher payroll and benefit costs and an increase in amortization expense related to cloud computing arrangements, partially offset by lower contract labor costs;
Current report
partially offset by
Current report
•$1.5 million increase in gas storage revenue.
Current report
NINE MONTHS ENDED SEPTEMBER 30, 2024 COMPARED TO SEPTEMBER 30, 2023.
Current report
Consolidated net income decreased $15.1 million at NW Natural primarily due to the following factors:
Current report
•$6.4 million increase in depreciation expense due to additional capital investments;
Current report
•$1.6 million increase in gas storage revenue.
Current report
Consolidated net income decreased $15.4 million at NW Holdings primarily due to the following factors:
Current report
Leadership changes as a result of the 2024 presidential and congressional elections may result in a wide range of new policies, executive orders, rules, initiatives and other changes to fiscal, tax, regulation, environmental, climate and other federal policies that may impact NW Natural and NW Holdings. Similarly, we could face significant legislative, regulatory and other policy changes at the state level or in the local jurisdictions in which we operate. Changes in federal, state, or local governmental leadership could accelerate or amplify changes in existing laws or regulations, or the manner in which they are interpreted or enforced, or otherwise affect the macroeconomic conditions in which we operate.
Current report
•$1.3 million increase in operations and maintenance expenses due to higher payroll and benefit costs and an increase in amortization expense related to cloud computing arrangements, partially offset by lower contract labor costs; partially offset by
Current report
•$2.8 million decrease in income tax expense due to lower pre-tax income.
Current report
•$6.4 million increase in depreciation expense due to additional capital investments;
Current report
(4)NM indicates that the calculated value is not meaningful.
Current report
•$1.9 million increase related to higher payroll and benefit costs and other employee-related expenses; and
Current report
Operations and maintenance expense increased $2.4 million at NW Holdings primarily due to the following:
Current report
•$1.3 million increase in operations and maintenance expense at NW Natural as discussed above; and
Current report
Operations and maintenance expense increased $2.3 million at NW Holdings primarily due to the following:
Current report
On October 25, 2024, the OPUC issued an order approving the Stipulations and resolving the remaining open items in the Rate Case. Along with resolving several non-revenue items, the OPUC ordered the phase out of NW Natural’s line extension allowance by November 1, 2027. Additionally, the OPUC ordered a downward adjustment to rate base of $13.7 million of undepreciated line extension costs, which we expect to result in a non-cash, pre-tax charge of approximately $13.7 million in the fourth quarter of 2024.
Current report
The final order and adjustments for completed capital projects resulted in a revenue requirement increase of $93.3 million over existing rates. Average rate base after final adjustments for completed capital projects was $2.09 billion or an increase of $334 million since the last rate case.
Current report
WATER AND WASTEWATER UTILITIES. NWN Water currently serves over 188,000 people through approximately 76,000 connections across five states. NWN Water continues to pursue acquisitions of regulated water and wastewater utilities:
Current report
•In the second quarter of 2024, NWN Water signed a purchase agreement for three water utilities with approximately 200 connections in Oregon. The OPUC approved the application in August 2024 and the acquisition closed in November 2024.
Current report
•In the fourth quarter of 2024, NWN Water signed a purchase agreement for a water utility with approximately 1,500 connections in Texas. NWN Water filed its notice of intent to seek fair market valuation with the PUCT in October 2024.
Current report
Ballot initiative I-2066 passed in November 2024. I-2066 was described on the ballot as prohibiting state and local governments from restricting access to natural gas, prohibiting the SBCC from discouraging or penalizing the use of natural gas in any building, requiring providers of natural gas to provide energy services regardless of the other energy sources available, and prohibiting the WUTC from approving any multiyear rate plan requiring or incentivizing a natural gas company to terminate natural gas service or make such natural gas service cost-prohibitive.
Current report
•$17.9 million increase in contributions to our defined benefit pension plan; and
Current report
•$14.3 million increase in the decoupling mechanism primarily due to lower residential customer usage; and
Removed paragraphs (21)
Previous report
Consolidated net income decreased $2.2 million at NW Natural primarily due to the following factors:
Previous report
•$1.8 million increase in depreciation expense due to additional capital investments; partially offset by
Previous report
•$0.4 million increase in NGD segment margin driven by:
Previous report
◦amortization of deferred balances (which is mostly offset in operations and maintenance expenses and interest expense) and customer growth; partially offset by
Previous report
◦warmer than average weather for customers not covered under the weather normalization mechanism.
Previous report
Consolidated net income decreased $4.0 million at NW Holdings primarily due to the following factors:
Previous report
SIX MONTHS ENDED JUNE 30, 2024 COMPARED TO JUNE 30, 2023.
Previous report
Consolidated net income decreased $10.2 million at NW Natural primarily due to the following factors:
Previous report
•$2.7 million increase in depreciation expense due to additional capital investments;
Previous report
•$0.9 million increase in NGD segment margin driven by:
Previous report
◦the amortization of deferred balances (which is primarily offset in operations and maintenance expenses and interest expense) and customer growth; partially offset by
Previous report
Consolidated net income decreased $11.9 million at NW Holdings primarily due to the following factors:
Previous report
•$0.7 million increase in general taxes driven by higher property taxes and regulatory commission fees; partially offset by
Previous 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
Previous report
•$2.8 million increase in depreciation expense due to additional capital investments;
Previous report
Operations and maintenance expense decreased $1.9 million at NW Holdings primarily due to the following:
Previous report
Operations and maintenance expense decreased $0.1 million at NW Holdings primarily due to the following:
Previous report
OREGON. On October 24, 2022, the OPUC issued an order for rates effective November 1, 2022, which authorized a return on equity of 9.4%, a cost of capital of 6.836%, and a capital structure of 50% common equity and 50% long-term debt. After adjustments provided in the order, the order increased the revenue requirement by $59.4 million, and included a rate base of $1.76 billion, or an increase of $320 million since the last rate case. The OPUC also ordered an adjustment to NW Natural’s current line extension allowance methodology to a five times margin approach (which for an average residential customer is currently approximately $2,300), declining to four times margin on November 1, 2023, and three times margin on November 1, 2024. The OPUC further ordered that the costs NW Natural sought to recover related to its Lexington RNG project were reasonable and prudently incurred under Senate Bill 98 and adopted an automatic adjustment clause that allows for NW Natural’s RNG project costs to be added to rates annually on November 1 st.
Previous report
Included in the 2022-23 PGA, the OPUC and WUTC approved a new customer rate mitigation program to address higher gas costs, which includes a temporary bill credit for NW Natural’s residential customers from November 2022 to March 2023, with deferral of the temporary bill credit to be recovered in warmer months when customers typically see lower bills. As of June 30, 2024, the amount deferred to a regulatory asset related to the bill credit that remains to be collected from customers in the 2023-24 PGA year was approximately $1.5 million.
Previous report
The Stipulations do not address all aspects of the Rate Case. We expect the remaining items of the original request to be subject to the ongoing regulatory litigation process, including, among other items, NW Natural’s line extension allowance policy, other remaining contested issues, and certain non-revenue items. The Stipulations are subject to the review and approval of the OPUC. For new rates to be effective, the OPUC must issue an order, which may approve or deny the terms of the Stipulations or be issued under the OPUC’s own terms. NW Natural expects new rates to take effect November 1, 2024.
Previous report
Another statewide initiative, I-2066, has qualified to be on the ballot in November 2024. I-2066 would require utilities and local governments to provide natural gas to eligible customers, prohibit restrictions on natural gas usage, and repeal sections of state law that limit gas service, rebates and incentives.
Reworded paragraphs (119)
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 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).
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 nine months ended September 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 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 wording
•Reported a net loss of $27.2 million or $0.71 per share (diluted) for the third quarter of 2024, compared to a net loss of $23.7 million or $0.65 per share (diluted) in the prior year;
Previous 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;
Current wording
•Reported net income of $33.9 million or $0.88 per share (diluted) for the first nine months of 2024, compared to net income of $49.2 million or $1.37 per share (diluted) in the prior year;
Previous 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
Current wording
•Added nearly 17,000 gas and water utility connections during the past twelve months for a combined growth rate of 1.9% at September 30, 2024 mainly driven by strong water acquisitions;
Previous wording
In June 2024, NW Natural Water agreed to acquire Infrastructure Capital Holdings, which includes the assets of Puttman Infrastructure, for approximately $34 million in cash consideration. The acquisition will add approximately 4,200 water, wastewater and recycled water customers across Oregon, Idaho and California. The transaction is expected to close in the third quarter of 2024 and will be included as cash paid for acquisitions in NW Holdings' statement of cash flows.
Current wording
•Closed ICH water acquisition adding wastewater and recycled water customers across Oregon, Idaho and California;
Previous 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.
Current wording
•Invested $294 million in our gas and water systems in the first nine months of 2024 to support growth and greater reliability and resiliency.
Previous 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;
Current wording
•$4.6 million decrease in other income, net primarily due to higher pension costs, lower interest income from invested cash and lower regulatory interest income;
Previous wording
•$1.8 million increase in depreciation expense due to additional capital investments; and
Current wording
•$3.6 million increase in depreciation expense due to additional capital investments; and
Previous wording
•$1.0 million decrease in income tax expense due to lower pre-tax income; and
Current wording
•$2.4 million decrease in income tax expense due to lower pre-tax income; and
Previous wording
•$10.2 million decrease in consolidated net income at NW Natural as discussed above; and
Current wording
•$4.9 million decrease in consolidated net income at NW Natural as discussed above; partially offset by
Previous wording
•$1.8 million decrease in other net income primarily reflecting a gain from a settlement recognized in the prior year.
Current wording
•$1.4 million increase in other net income primarily reflecting net income from the recently acquired ICH business and lower business development costs at the holding company.
Previous wording
•$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 wording
•$12.6 million decrease in other income, net primarily due to higher pension costs, lower interest income from invested cash, lower regulatory interest income and a decline in the equity portion of Allowance for Funds Used During Construction (AFUDC);
Previous wording
•$1.8 million increase in general taxes primarily driven by higher regulatory commission fees; partially offset by
Current wording
•$1.7 million increase in general taxes primarily driven by higher regulatory commission fees;
Previous wording
•$1.9 million increase in interest expense, net primarily due to higher long-term debt balances; and
Current wording
•$1.3 million increase in interest expense, net due to higher long-term debt balances; and
Previous wording
•$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 wording
•$2.1 million decrease in operations and maintenance expenses due to lower benefit and contract labor costs and other employee-related expenses, partially offset by the amortization of deferred balances (which is primarily offset in revenues) and an increase in amortization expense related to cloud computing arrangements;
Previous wording
•$2.2 million decrease in consolidated net income at NW Natural as discussed above; and
Current wording
•$15.1 million decrease in consolidated net income at NW Natural as discussed above; and
Previous wording
•$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 wording
•$0.3 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.
Previous wording
CURRENT ECONOMIC CONDITIONS. We continuously review and monitor current economic conditions, which include but are not limited to: inflation and interest rates, supply chain disruptions, and other regulatory, physical or cyber related risks impacting our business. We have experienced higher material and labor costs as a result of inflation as well as increased interest costs from higher rates over the past year. We also continue to experience long lead times on certain materials, including meter parts, microchips, semi-conductors, and IT equipment. However, through advanced planning, carrying additional levels of inventory, diversifying our vendors, and making contingency plans to address risks, we are striving to mitigate supply chain risks.
Current wording
CURRENT ECONOMIC AND POLITICAL CONDITIONS. We continuously review and monitor current economic conditions, which include but are not limited to: inflation and interest rates, supply chain disruptions, and other regulatory, physical or cyber related risks impacting our business. We have experienced higher material and labor costs as a result of inflation as well as increased interest costs from higher rates over the past year. While we have experienced long lead times on certain materials, including meter parts, microchips, semi-conductors, and IT equipment over the past year, more recently we have seen these lead times reduce and return to more typical levels. Through advanced planning, carrying additional levels of inventory, diversifying our vendors, and making contingency plans to address risks, we are striving to mitigate supply chain risks.
Previous wording
NW Holdings and NW Natural continue to monitor interest rates and financing options for all of its businesses. Interest rates have increased over the past few years resulting from actions taken by the U.S. Federal Reserve to increase short-term rates as inflation was elevated. NW Natural generally recovers interest expense on its long-term debt through its authorized cost of capital. Certain working capital items, such as the cost of gas, are deferred and accrue interest in Oregon and Washington. Additionally, short-term debt is incorporated in the capital structure in Washington. NW Natural Water's regulated water and wastewater utilities generally recover interest expense from long-term debt through their respective authorized cost of capital.
Current wording
NW Holdings and NW Natural continue to monitor interest rates and financing options for all of its businesses. Interest rates have increased over the past few years resulting from actions taken by the U.S. Federal Reserve to increase short-term rates as inflation was elevated. While recently the U.S. Federal Reserve lowered the short-term rate, interest rates remain elevated compared to years past. NW Natural generally recovers interest expense on its long-term debt through its authorized cost of capital. Certain working capital items, such as the cost of gas, are deferred and accrue interest in Oregon and Washington. Additionally, short-term debt is incorporated in the capital structure in Washington. NW Natural Water's regulated water and wastewater utilities generally recover interest expense from long-term debt through their respective authorized cost of capital.
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 second 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 third quarter of 2024.
Previous wording
In July 2024, the Board of Directors of NW Holdings declared a quarterly dividend on NW Holdings common stock of $0.4875 per share. The dividend is payable on August 15, 2024 to shareholders of record on July 31, 2024, reflecting an annual indicated dividend rate of $1.95 per share.
Current wording
In October 2024, the Board of Directors of NW Holdings declared a quarterly dividend on NW Holdings common stock of $0.4900 per share. The dividend is payable on November 15, 2024 to shareholders of record on October 31, 2024, reflecting an annual indicated dividend rate of $1.96 per share.
Previous 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:
Current wording
THREE MONTHS ENDED SEPTEMBER 30, 2024 COMPARED TO SEPTEMBER 30, 2023. The primary factors contributing to the $6.2 million, or $0.13 per share, decrease in NGD net income were as follows:
Previous wording
•$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 wording
•$4.6 million decrease in other income, net driven by lower interest income from invested cash, higher pension non-service costs and lower regulatory interest income;
Previous wording
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 wording
For the three months ended September 30, 2024, total NGD volumes sold and delivered decreased 0.9 million compared to the same period in 2023 primarily due to lower usage from industrial sales customers in the third quarter of 2024 compared to the prior period.
Previous wording
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 wording
NINE MONTHS ENDED SEPTEMBER 30, 2024 COMPARED TO SEPTEMBER 30, 2023. The primary factors contributing to the $15.2 million, or $0.48 per share, decrease in NGD net income were as follows:
Previous 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;
Current wording
•$12.6 million decrease in other income, net driven by higher pension non-service costs, lower interest income from invested cash, lower regulatory interest income and a decline in the equity portion of AFUDC;
Previous wording
•$1.8 million increase in general taxes primarily driven by higher regulatory commission fees; and
Current wording
•$1.7 million increase in general taxes primarily driven by higher regulatory commission fees; and
Previous wording
•$1.8 million increase in interest expense, net due to higher long-term debt balances;
Current wording
•$1.4 million increase in interest expense, net primarily due to higher long-term debt balances; partially offset by
Previous wording
•$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 wording
•$3.5 million decrease in income tax expense due to lower pre-tax income;
Previous wording
•$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 wording
•$2.5 million decrease in operations and maintenance expenses due to lower benefit and contract labor costs and other employee-related expenses, partially offset by the amortization of deferred balances (which is primarily offset in revenues) and an increase in amortization expense related to cloud computing arrangements; and
Previous 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);
Current wording
•$5.5 million increase due to the amortization of deferred balances primarily related to COVID-19, cybersecurity, and ERP upgrades (which is primarily offset in operations and maintenance expenses and interest expense);
Previous wording
•$0.4 million increase driven by customer growth; partially offset by
Current wording
•$1.7 million increase driven by customer growth among other miscellaneous items; partially offset by
Previous 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.
Current wording
•$1.8 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 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.
Current wording
For the nine months ended September 30, 2024, total NGD volumes sold and delivered decreased 42.3 million therms over the same period in 2023 primarily due to 13% warmer than average weather in the first nine months of 2024 compared to 2% colder than average weather in the prior period.
Previous wording
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 wording
THREE MONTHS ENDED SEPTEMBER 30, 2024 COMPARED TO SEPTEMBER 30, 2023. Residential and commercial margin increased $0.3 million compared to the prior period. The increase was primarily driven by 0.6% growth in residential customer meters. Volumes increased 0.1 million therms due to slightly higher usage from commercial sales customers.
Previous 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.
Current wording
NINE MONTHS ENDED SEPTEMBER 30, 2024 COMPARED TO SEPTEMBER 30, 2023. Residential and commercial margin increased $3.1 million compared to the prior period. The increase was primarily driven by 0.6% growth in residential customer meters. Volumes decreased 34.2 million therms due to lower usage driven by comparatively warmer weather.
Previous 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.
Current wording
THREE MONTHS ENDED SEPTEMBER 30, 2024 COMPARED TO SEPTEMBER 30, 2023. Industrial sales and transportation margin decreased $0.2 million compared to the prior period primarily driven by lower sales volumes. Volumes decreased 1.1 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
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 wording
NINE MONTHS ENDED SEPTEMBER 30, 2024 COMPARED TO SEPTEMBER 30, 2023. Industrial sales and transportation margin decreased $0.5 million compared to the prior period primarily driven by lower sales and transportation volumes. Volumes decreased 8.1 million therms primarily due to lower usage from multiple customers, most notably in the forest products, pulp and paper, chemical manufacturing, and food processing industries.
Previous 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.
Current wording
THREE MONTHS ENDED SEPTEMBER 30, 2024 COMPARED TO SEPTEMBER 30, 2023. Cost of gas decreased $10.5 million primarily due to a 20% decrease in average cost of gas and a 2% decrease in volumes sold. Volumes sold decreased 1.7 million therms due to lower usage from industrial sales customers. The gain from the Oregon gas cost incentive sharing mechanism declined $0.3 million due to tighter market spreads compared to the PGA.
Previous 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.
Current wording
NINE MONTHS ENDED SEPTEMBER 30, 2024 COMPARED TO SEPTEMBER 30, 2023. Cost of gas decreased $70.0 million primarily due to a 13% decrease in average cost of gas and a 7% decrease in volumes sold. Volumes sold decreased 40.9 million therms due to lower usage driven by comparatively warmer weather. The gain from the Oregon gas cost incentive sharing mechanism declined $1.8 million due to tighter market spreads compared to the PGA and higher than estimated gas costs during the cold weather event in January 2024.
Showing the first 40 of 119 pairs. Open the source sections for the rest.
Rearranged current paragraphs (7)
Current report — wording carried from elsewhere
Consolidated net income decreased $3.5 million at NW Holdings primarily due to the following factors:
Current report — wording carried from elsewhere
•$3.4 million decrease in income tax expense due to lower pre-tax income; and
Current report — wording carried from elsewhere
•$3.7 million increase in depreciation expense due to additional capital investments; and
Current report — wording carried from elsewhere
Other income, net decreased $4.1 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 report — wording carried from elsewhere
New rates authorized by the OPUC order were effective November 1, 2024.
Current report — wording carried from elsewhere
During the three months ended September 30, 2024, NW Holdings issued and sold 1,429,750 shares of common stock pursuant to the ATM equity program resulting in cash proceeds of $55.5 million, net of fees and commissions paid to agents of $0.9 million. During the nine months ended September 30, 2024, NW Holdings issued and sold 2,382,750 shares of common stock pursuant to the ATM equity program resulting in cash proceeds of $90.4 million, net of fees and commissions paid to agents of $1.5 million. As of September 30, 2024, NW Holdings had $146.7 million of equity available for issuance under the ATM equity program.
Current report — wording carried from elsewhere
Alongside these development agreements, Ohio Renewables and the subsidiary of EDL executed agreements for Ohio Renewables to purchase up to an annual specified amount of RNG produced by the EDL Facilities over a 20-year period at a contractually specified price. Under the amended agreements, we currently estimate the amount of RNG purchases based on prices and quantities specified in the agreements to be as follows: approximately $0.4 million in 2024, $18.9 million in 2025, $18.9 million in 2026, $22.8 million in 2027, $22.8 million in 2028 and $556.5 million thereafter.
Rearranged previous paragraphs (10)
Previous report — wording carried 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.
Previous report — wording carried elsewhere
•$0.4 million increase in NGD margin due to:
Previous report — wording carried 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
Previous report — wording carried 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.
Previous report — wording carried elsewhere
•$2.4 million decrease related to lower payroll and benefit costs and other employee-related expenses; and
Previous report — wording carried 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.
Previous report — wording carried elsewhere
•$1.1 million increase in amortization expense related to cloud computing arrangements.
Previous report — wording carried elsewhere
•$3.4 million decrease in operations and maintenance expense at NW Natural as discussed above; partially offset by
Previous report — wording carried elsewhere
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.
Previous report — wording carried 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.