Regulatory Accounting: EQT Midstream’s regulated operations consist of interstate pipeline operations subject to regulation by the Federal Energy Regulatory Commission (FERC) and certain FERC-regulated gathering operations. The application of regulatory accounting allows the Company to defer expenses and income on its Consolidated Balance Sheets as regulatory assets and liabilities when it is probable that those expenses and income will be allowed in the rate setting process in a period different from the period in which they would have been reflected in the Statements of Consolidated Income for a non-regulated company. The deferred regulatory assets and liabilities are then recognized in the Statements of Consolidated Income in the period in which the same amounts are reflected in rates.
The following table presents the total regulated net revenues and operating expenses included in the operations of EQT Midstream:
|
|
|
Years Ended December 31, |
| |||||||
|
|
|
2013 |
|
2012 |
|
2011 |
| |||
|
|
|
(Thousands) |
| |||||||
|
Midstream revenues |
|
$ |
184,767 |
|
$ |
131,184 |
|
$ |
113,774 |
|
|
|
|
|
|
|
|
|
| |||
|
Midstream operating expenses |
|
$ |
71,517 |
|
$ |
66,202 |
|
$ |
76,247 |
|
The following table presents the regulated net property, plant and equipment included in EQT Midstream:
|
|
|
As of December 31, |
| |||||
|
|
|
2013 |
|
|
2012 |
| ||
|
|
|
(Thousands) |
| |||||
|
Property, plant & equipment |
|
$ |
1,015,118 |
|
|
$ |
797,405 |
|
|
Accumulated depreciation and amortization |
|
(158,533 |
) |
|
(143,714 |
) | ||
|
Net property, plant & equipment |
|
$ |
856,585 |
|
|
$ |
653,691 |
|
The regulatory assets associated with deferred taxes of $13.3 million and $18.3 million as of December 31, 2013 and 2012, respectively, are included in other assets in the Consolidated Balance Sheets and primarily represent deferred income taxes recoverable through future rates related to a historical deferred tax position and the equity component of allowance for funds used during construction (AFUDC). The Company expects to recover the amortization of the deferred tax position ratably over the corresponding life of the underlying assets that created the difference.