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☒
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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☐
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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New York
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14-1798693
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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180 Marsh Hill Road
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Orange,
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Connecticut
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06477
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(Address of principal executive offices)
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(Zip Code)
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Title of each class
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Trading Symbol
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Name of exchange on which registered
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Common Stock, par value $0.01 per share
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AGR
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New York Stock Exchange
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Large Accelerated Filer
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☒
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Accelerated Filer
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☐
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Non-accelerated Filer
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☐
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Smaller Reporting Company
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☐
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Emerging Growth Company
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☐
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AGT
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Algonquin Gas Transmission
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AMI
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Automated Metering Infrastructure
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AOCI
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Accumulated other comprehensive income
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ARHI
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Avangrid Renewables Holdings, Inc.
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ARP
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Alternative Revenue Programs
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ASC
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Accounting Standards Codification
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Asnat
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Asnat Realty, LLC
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Army Corps
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U.S. Army Corps of Engineers
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ARO
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Asset retirement obligation
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AVANGRID
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Avangrid, Inc.
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Bcf
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One billion cubic feet
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BGC
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The Berkshire Gas Company
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BGEPA
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Bald and Golden Eagle Protection Act
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BLM
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U.S. Bureau of Land Management
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Cayuga
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Cayuga Operating Company, LLC
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CENG
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Constellation Energy Nuclear Group, LLC
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CfDs
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Contracts for Differences
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CFTC
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Commodity Futures Trading Commission
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CLCPA
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Climate Leadership and Community Protection Act
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CL&P
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The Connecticut Light and Power Company
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CMP
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Central Maine Power Company
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CNG
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Connecticut Natural Gas Corporation
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CPCN
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Certificate of Public Convenience and Necessity
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CSC
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Connecticut Siting Council
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DCF
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Discounted cash flow
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DEEP
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Connecticut Department of Energy and Environmental Protection
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DIMP
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Distribution Integrity Management Program
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DER
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Distributed energy resources
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Dodd-Frank Act
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Dodd-Frank Wall Street Reform and Consumer Protection Act
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DOE
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Department of Energy
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DOER
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Massachusetts Department of Energy Resources
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DOJ
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Department of Justice
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DPA
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Deferred Payment Arrangements
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DPU
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Massachusetts Department of Public Utilities
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DSIP
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Distributed System Implementation Plan
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DSP
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Distributed System Platform
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DTh
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Dekatherm
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EAM
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Earnings adjustment mechanism
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EDC
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Massachusetts electric distribution companies
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EDF
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Environmental Defense Fund
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English Station
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Former generation site on the Mill River in New Haven, Connecticut
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EPA
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Environmental Protection Agency
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EPAct 2005
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Energy Policy Act of 2005
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ERCOT
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Electric Reliability Council of Texas
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ESA
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Endangered Species Act
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ESC
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Energy Smart Community
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ESM
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Earnings sharing mechanism
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Evergreen Power
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Evergreen Power III, LLC
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Exchange Act
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The Securities Exchange Act of 1934, as amended
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FASB
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Financial Accounting Standards Board
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FERC
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Federal Energy Regulatory Commission
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FirstEnergy
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FirstEnergy Corp.
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FPA
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Federal Power Act
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Gas
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Enstor Gas, LLC
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GenConn
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GenConn Energy LLC
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GenConn Devon
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GenConn’s peaking generating plant in Devon, Connecticut
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GenConn Middleton
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GenConn’s peaking generating plant in Middletown, Connecticut
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Ginna
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Ginna Nuclear Power Plant, LLC and the R.E. Ginna Nuclear Power Plant
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Ginna Facility
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R.E. Ginna Nuclear Power Plant
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GNPP
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Ginna Nuclear Power Plant, LLC.
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HLBV
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Hypothetical Liquidation at Book Value
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HQUS
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H.Q. Energy Services (U.S) Inc.
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Iberdrola
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Iberdrola, S.A., which owns 81.5% of the outstanding shares of Avangrid, Inc.
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Iberdrola Group
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The group of companies controlled by Iberdrola, S.A.
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Installed capacity
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The production capacity of a power plant or wind farm based either on its rated (nameplate) capacity or actual capacity
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IRS
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Internal Revenue Service
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ISO
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Independent system operator
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ISO-NE
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ISO New England, Inc.
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Joint Proposal
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The Joint Proposal, approved by the NYPSC on June 15, 2016, by NYSEG, RG&E and certain other signatory parties for a three-year rate plan for electric and gas service at NYSEG and RG&E commencing May 1, 2016.
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Klamath Plant
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The Klamath gas-fired cogeneration facility located in the city of Klamath, Oregon
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kV
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Kilovolts
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kWh
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Kilowatt-hour
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LDC
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Local distribution company
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LIBOR
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London Interbank Offer Rate
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LNG
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Liquefied natural gas
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MBTA
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Migratory Bird Treaty Act
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Merger Agreement
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The Agreement and Plan of Merger, dated as of February 25, 2015, by and among Avangrid, Inc., Green Merger Sub, Inc. and UIL Holdings Corporation
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Merger Sub
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Green Merger Sub, Inc.
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MEPCO
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Maine Electric Power Corporation
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MGP
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Manufactured gas plants
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MHI
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Mitsubishi Heavy Industries
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MNG
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Maine Natural Gas Corporation
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MPRP
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Maine Power Reliability Program
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MPUC
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Maine Public Utilities Commission
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MtM
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Mark-to-market
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MW
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Megawatts
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MWh
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Megawatt-hours
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NAV
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Net asset value
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NECEC
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New England Clean Energy Connect
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NEPA
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National Environmental Policy Act
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NERC
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North American Electric Reliability Corporation
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NETOs
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New England Transmission Owners
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Networks
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Avangrid Networks, Inc.
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New York TransCo
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New York TransCo, LLC.
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NGA
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Natural Gas Act of 1938
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NOL
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Net operating loss
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Non-GAAP
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Financial measures that are not prepared in accordance with U.S. GAAP, including adjusted net income and adjusted earnings per share
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NYISO
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New York Independent System Operator, Inc.
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NYPA
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New York Power Authority
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NYPSC
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New York State Public Service Commission
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NYSE
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New York Stock Exchange
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NYSEG
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New York State Electric & Gas Corporation
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NYSERDA
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New York State Energy Research and Development Authority
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OATT
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Open Access Transmission Tariff
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OCC
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Connecticut Office of Consumer Counsel
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OCI
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Other comprehensive income
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OSHA
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Occupational Safety and Health Act, as amended
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OTTI
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Other than temporary impairment
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PA
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Connecticut Public Act
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PCB
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Polychlorinated Biphenyls
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PJM
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PJM Interconnection, L.L.C.
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PPA
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Power purchase agreement
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PTF
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Pool Transmission Facilities
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PUCT
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Public Utility Commission of Texas
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PUHCA 2005
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Public Utility Holding Company Act of 2005
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PURA
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Connecticut Public Utilities Regulatory Authority
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RAM
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Rate Adjustment Mechanism
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RCRA
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Resource Conservation and Recovery Act
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RDM
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Revenue decoupling mechanism
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REC
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Renewable Energy Certificate
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RFP
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Request for Proposals
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Renewables
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Avangrid Renewables, LLC
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REV
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Reforming the Energy Vision
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RG&E
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Rochester Gas and Electric Corporation
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ROE
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Return on equity
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ROU
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Right-of-use
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RPS
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Renewable Portfolio Standards
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RSSA
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Reliability Support Services Agreement
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RTO
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Regional transmission organization
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SCG
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The Southern Connecticut Gas Company
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Scottish Power
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Scottish Power Ltd.
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SEC
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United States Securities and Exchange Commission
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SOX
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Sarbanes-Oxley Act
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SPHI
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Scottish Power Holdings, Inc.
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Tax Act
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Tax Cuts and Jobs Act of 2017 enacted by the U.S. federal government on December 22, 2017
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TEF
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Tax equity financing arrangements
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TSA
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Transmission Service Agreement
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UI
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The United Illuminating Company
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UIL
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UIL Holdings Corporation
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U.S. GAAP
|
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Generally accepted accounting principles for financial reporting in the United States.
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VaR
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Value-at-risk
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VIEs
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Variable interest entities
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WECC
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Western Electricity Coordinating Council
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•
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the future financial performance, anticipated liquidity and capital expenditures;
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•
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actions or inactions of local, state or federal regulatory agencies;
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•
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success in retaining or recruiting our officers, key employees or directors;
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•
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changes in levels or timing of capital expenditures;
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•
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adverse developments in general market, business, economic, labor, regulatory and political conditions;
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•
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fluctuations in weather patterns;
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•
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technological developments;
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•
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the impact of any cyber breaches or other incidents, grid disturbances, acts of war or terrorism or natural disasters;
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•
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the impact of any change to applicable laws and regulations affecting operations including those relating to the environment and climate change, taxes, price controls, regulatory approval and permitting;
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•
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the implementation of changes in accounting standards; and
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•
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other presently unknown unforeseen factors.
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•
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New York State Electric & Gas Corporation, or NYSEG, which serves electric and natural gas customers across more than 40% of the upstate New York geographic area;
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•
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Rochester Gas and Electric Corporation, or RG&E, which serves electric and natural gas customers within a nine-county region in western New York, centered around Rochester;
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•
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The United Illuminating Company, or UI, which serves electric customers in southwestern Connecticut;
|
•
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Central Maine Power Company, or CMP, which serves electric customers in central and southern Maine;
|
•
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SCG, which serves natural gas customers in Connecticut;
|
•
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CNG, which serves natural gas customers in Connecticut;
|
•
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BGC, which serves natural gas customers in western Massachusetts; and
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•
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Maine Natural Gas Corporation, or MNG, which serves natural gas customers in several communities in central and southern Maine.
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Utility
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Rate Base(1)
(in billions)
|
|
Electricity
Customers
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Electricity
Delivered
(in MWh)
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Natural Gas
Customers
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Natural Gas
Delivered
(in DTh)
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||||||
NYSEG
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$
|
2.9
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|
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902,593
|
|
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15,525,000
|
|
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268,806
|
|
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57,511,000
|
|
RG&E
|
|
$
|
2.0
|
|
|
383,592
|
|
|
7,072,000
|
|
|
317,661
|
|
|
61,120,000
|
|
CMP
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|
$
|
2.4
|
|
|
636,341
|
|
|
9,039,000
|
|
|
—
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|
|
—
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MNG
|
|
$
|
0.1
|
|
|
—
|
|
|
—
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|
|
4,974
|
|
|
1,254,000
|
|
UI
|
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$
|
1.8
|
|
|
338,654
|
|
|
4,978,000
|
|
|
—
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|
—
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SCG
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|
$
|
0.6
|
|
|
—
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|
|
—
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|
|
203,269
|
|
|
37,177,000
|
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CNG
|
|
$
|
0.5
|
|
|
—
|
|
|
—
|
|
|
181,527
|
|
|
39,157,000
|
|
BGC
|
|
$
|
0.1
|
|
|
—
|
|
|
—
|
|
|
40,500
|
|
|
10,444,000
|
|
(1)
|
“Rate base” means the net assets upon which a utility can receive a specified return, based on the value of such assets. The rate base is set by the relevant regulatory authority and typically represents the value of specified property, such as plants, facilities and other investments of the utility. These rate base values have been calculated using the best estimates as of December 31, 2019.
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Rate base
|
|
2017
|
|
2018
|
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2019
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(in millions)
|
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NYSEG Electric
|
|
$
|
1,872
|
|
|
$
|
2,067
|
|
|
$
|
2,250
|
|
NYSEG Gas
|
|
534
|
|
|
585
|
|
|
610
|
|
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RG&E Electric
|
|
1,218
|
|
|
1,386
|
|
|
1,453
|
|
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RG&E Gas
|
|
428
|
|
|
497
|
|
|
516
|
|
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Subtotal New York
|
|
4,052
|
|
|
4,535
|
|
|
4,829
|
|
|||
CMP Dist
|
|
854
|
|
|
903
|
|
|
933
|
|
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CMP Trans
|
|
1,460
|
|
|
1,460
|
|
|
1,469
|
|
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MNG
|
|
67
|
|
|
71
|
|
|
76
|
|
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Subtotal Maine
|
|
2,381
|
|
|
2,434
|
|
|
2,478
|
|
|||
UI Dist
|
|
1,007
|
|
|
1,035
|
|
|
1,112
|
|
|||
UI Trans
|
|
570
|
|
|
592
|
|
|
672
|
|
|||
SCG
|
|
536
|
|
|
550
|
|
|
587
|
|
|||
CNG
|
|
449
|
|
|
479
|
|
|
538
|
|
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Subtotal Connecticut
|
|
2,562
|
|
|
2,656
|
|
|
2,909
|
|
|||
BGC
|
|
107
|
|
|
111
|
|
|
136
|
|
|||
Total
|
|
$
|
9,103
|
|
|
$
|
9,736
|
|
|
$
|
10,352
|
|
|
|
2017
|
|
2018
|
|
2019
|
NYSEG Electric
|
|
50% / 50%: 9.65% - 10.15%
75% / 25%: 10.15% - 10.65% 90% / 10%: over 10.65%; Based on Actual Equity Ratio up to 50% |
|
50% / 50%: 9.75% - 10.25%
75% / 25%: 10.25% - 10.75% 90% / 10%: over 10.75%; Based on Actual Equity Ratio up to 50% |
|
50% / 50%: 9.75% - 10.25%
75% / 25%: 10.25% - 10.75% 90% / 10%: over 10.75%; Based on Actual Equity Ratio up to 50% |
NYSEG Gas
|
|
Same as above
|
|
Same as above
|
|
Same as above
|
RG&E Electric
|
|
Same as above
|
|
Same as above
|
|
Same as above
|
RG&E Gas
|
|
Same as above
|
|
Same as above
|
|
Same as above
|
CMP Dist.
|
|
No ESM
|
|
No ESM
|
|
No ESM
|
CMP Trans.
|
|
No ESM
|
|
No ESM
|
|
No ESM
|
MNG
|
|
50% / 50% over 11.55%
|
|
50% / 50% over 11.55%
|
|
50% / 50% over 11.55%
|
UI
|
|
50% / 50% over 9.10%
|
|
50% / 50% over 9.10%
|
|
50% / 50% over 9.10%
|
SCG
|
|
No ESM
|
|
50% / 50% over 9.25%
|
|
50% / 50% over 9.25%
|
CNG
|
|
50% / 50% over 9.18%
|
|
50% / 50% over 9.18%
|
|
50% / 50% over 9.18%
|
BGC
|
|
No ESM
|
|
No ESM
|
|
No ESM
|
MFG
|
|
Model
|
|
Rating
|
|
Turbines
|
|
MW
|
|||
Siemens-Gamesa
|
|
G83
|
|
2.0
|
|
|
60
|
|
|
120
|
|
Siemens-Gamesa
|
|
G87
|
|
2.0
|
|
|
650
|
|
|
1,300
|
|
Siemens-Gamesa
|
|
G90
|
|
2.0
|
|
|
236
|
|
|
472
|
|
Siemens-Gamesa
|
|
G97
|
|
2.0
|
|
|
109
|
|
|
218
|
|
Siemens-Gamesa
|
|
G114
|
|
2.0
|
|
|
282
|
|
|
581
|
|
Siemens-Gamesa
|
|
SWT2.3-93
|
|
2.3
|
|
|
44
|
|
|
101
|
|
GE
|
|
1.5s
|
|
1.5
|
|
|
133
|
|
|
200
|
|
GE
|
|
1.5sle
|
|
1.5
|
|
|
1,126
|
|
|
1,689
|
|
GE
|
|
2.3
|
|
2.3
|
|
|
83
|
|
|
184
|
|
GE
|
|
2.52
|
|
2.5
|
|
|
128
|
|
|
252
|
|
GE
|
|
2.5
|
|
2.5
|
|
|
9
|
|
|
23
|
|
MHI
|
|
MWT62/1.0
|
|
1.0
|
|
|
45
|
|
|
45
|
|
MHI
|
|
MWT92/2.4
|
|
2.4
|
|
|
167
|
|
|
401
|
|
MHI
|
|
MWT95/2.4
|
|
2.4
|
|
|
125
|
|
|
300
|
|
MHI
|
|
MWT102/2.4
|
|
2.4
|
|
|
1
|
|
|
2
|
|
Suzlon
|
|
S88
|
|
2.1
|
|
|
325
|
|
|
681
|
|
Vestas
|
|
NM48
|
|
0.7
|
|
|
3
|
|
|
2
|
|
Vestas
|
|
V47
|
|
0.7
|
|
|
34
|
|
|
22
|
|
Vestas
|
|
V82
|
|
1.7
|
|
|
98
|
|
|
161
|
|
Vestas
|
|
V126/3.45
|
|
3.45
|
|
|
14
|
|
|
48
|
|
Vestas
|
|
V136/3.6
|
|
3.6
|
|
|
109
|
|
|
392
|
|
Vestas
|
|
V136/3.8
|
|
3.8
|
|
|
17
|
|
|
65
|
|
Total
|
|
|
|
|
|
3,798
|
|
|
7,259
|
|
•
|
New York. On June 15, 2016, the NYPSC approved NYSEG's and RG&E's Joint Proposal for a three-year rate plan for electric and gas service, which balanced the varied interests of the signatory parties including but not limited to maintaining the companies’ credit quality and mitigating the rate impacts to customers. For more information on rate case activity in New York, see Note 5 of our consolidated financial statements included in Part II, Item 8, "Financial Statements and Supplementary Data" of this Annual Report on Form 10-K, which information is incorporated herein by reference.
|
•
|
Maine. On May 1, 2013, CMP filed a distribution service rate case in order to recover past and future investments and provide safe and adequate service. On August 25, 2014, MPUC approved a stipulation agreement that provided for a distribution rate increase of approximately $24.3 million, effective July 1, 2014, with an allowed ROE of 9.45% and an allowed equity ratio of 50%. The stipulation provided for the implementation of a revenue decoupling mechanism, or RDM, reserve accounting and sharing of incremental storm costs, a separate proceeding for recovery of a new billing system and no earnings sharing. On March 1, 2018, the MPUC issued a Notice of Investigation initiating a summary investigation into CMP’s metering, billing and customer communications practices. Due to the highly technical nature of CMP’s customer billing system, on March 22, 2018 the MPUC issued an Order Initiating Audit commencing a forensic
|
•
|
Connecticut. In December 2016, PURA approved distribution rate schedules for UI for three years with rate increases of $43 million, $13 million and $3 million in 2017, 2018 and 2019, respectively, based on an ROE of 9.10% and a 50% equity ratio. The new rate schedules continued UI’s existing ESM pursuant to which UI and its customers share on a 50/50 basis all distribution earnings above the allowed ROE in a calendar year, continued the existing decoupling mechanism, and approved the continuation of a requested storm reserve. Any dollars due to customers from the ESM continue to be first applied against any storm regulatory asset balance (if one exists at that time) or refunded to customers through a bill credit if such storm regulatory asset balance does not exist.
|
•
|
Massachusetts. On January 18, 2019, the DPU approved a settlement agreement between BGC and the Massachusetts Attorney General’s Office providing for new distribution rates for BGC. The settlement agreement provides for a $1.6 million distribution base rate increase effective February 1, 2019 (with a make-whole provision back to January 1, 2019), and an additional $0.7 million base distribution increase effective November 1, 2019, if certain investments are made by BGC. The distribution rate increase is based on a 9.70% ROE and 54% equity ratio. The settlement agreement provides for the implementation of an RDM and pension expense tracker and also provides that BGC will not file to change base distribution rates to become effective before November 1, 2021.
|
Operating Company
|
|
Facility Location
|
|
Facility Type
|
|
Installed Capacity (in MW)
|
|
Year(s) Commissioned
|
NYSEG
|
|
Newcomb, NY
|
|
Diesel Turbine
|
|
4.3
|
|
1967, 2017
|
NYSEG
|
|
Blue Mountain, NY
|
|
Diesel Turbine
|
|
2.0
|
|
2019
|
NYSEG
|
|
Long Lake, NY
|
|
Diesel Turbine
|
|
2.0
|
|
2019
|
NYSEG
|
|
Eastern New York (6 locations)
|
|
Hydroelectric
|
|
61.4
|
|
1921—1983
|
RG&E
|
|
Rochester, NY (3 locations)
|
|
Hydroelectric
|
|
57.1
|
|
1917—1960
|
Utility
|
|
State
|
|
Substations
|
|
Transmission Lines (in miles)
|
|
Overhead Distribution Lines (in pole miles)
|
|
Underground Lines (in miles)
|
|
Total Distribution (in miles)
|
|
Electricity Customers
|
||||||
NYSEG
|
|
New York
|
|
429
|
|
|
4,548
|
|
|
32,223
|
|
|
2,911
|
|
|
35,134
|
|
|
902,593
|
|
RG&E
|
|
New York
|
|
155
|
|
|
1,095
|
|
|
5,940
|
|
|
2,935
|
|
|
8,875
|
|
|
383,592
|
|
CMP
|
|
Maine
|
|
207
|
|
|
2,921
|
|
|
21,803
|
|
|
1,545
|
|
|
23,348
|
|
|
636,341
|
|
UI
|
|
Connecticut
|
|
28
|
|
|
139
|
|
|
2,893
|
|
|
745
|
|
|
3,638
|
|
|
338,654
|
|
Utility
|
|
State
|
|
Natural Gas Customers
|
|
Transmission Pipeline (in miles)
|
|
Distribution Pipeline (in miles)
|
|||
NYSEG
|
|
New York
|
|
268,806
|
|
|
20
|
|
|
8,382
|
|
RG&E
|
|
New York
|
|
317,661
|
|
|
105
|
|
|
8,999
|
|
MNG
|
|
Maine
|
|
4,974
|
|
|
2
|
|
|
216
|
|
SCG
|
|
Connecticut
|
|
203,269
|
|
|
—
|
|
|
2,472
|
|
CNG
|
|
Connecticut
|
|
181,527
|
|
|
—
|
|
|
2,185
|
|
BGC
|
|
Massachusetts
|
|
40,500
|
|
|
—
|
|
|
764
|
|
Location
|
|
Wind Project
|
|
Turbines
|
|
Total Installed Capacity (MW)
|
|
Commercial Operation Date
|
|
North American Electric Reliability Corporation (NERC) Region
|
Arizona
|
|
Dry Lake I
|
|
30 (Suzlon S88, 2.1 MW)
|
|
63
|
|
2009
|
|
WECC
|
|
|
Poseidon Wind (1)
|
|
15.5 (Suzlon, 2.1 MW)
|
|
33
|
|
2010
|
|
WECC
|
California
|
|
Dillon
|
|
45 (Mitsubishi, 1 MW)
|
|
45
|
|
2008
|
|
WECC
|
|
|
Manzana
|
|
126 (GE, 1.5 MW)
|
|
189
|
|
2011
|
|
WECC
|
|
|
Mountain View III
|
|
34 (Vestas V47, 0.66 MW)
|
|
22
|
|
2003
|
|
WECC
|
|
|
Phoenix Wind Power
|
|
3 (Vestas, 0.66 MW)
|
|
2
|
|
1999
|
|
WECC
|
|
|
Shiloh
|
|
100 (GE, 1.5 MW)
|
|
150
|
|
2006
|
|
WECC
|
|
|
Tule
|
|
57 (GE, 2.3 MW)
|
|
131
|
|
2017
|
|
WECC
|
Colorado
|
|
Colorado Green
|
|
108 (GE, 1.5 MW)
|
|
162
|
|
2003
|
|
WECC
|
|
|
Twin Buttes
|
|
50 (GE, 1.5 MW)
|
|
75
|
|
2007
|
|
WECC
|
|
|
Twin Buttes II
|
|
30 (Gamesa G114, 2.10 MW);
6 (Gamesa G114, 2.0 MW) |
|
75
|
|
2017
|
|
WECC
|
Illinois
|
|
Providence Heights
|
|
36 (Gamesa G87, 2.0 MW)
|
|
72
|
|
2008
|
|
MRO
|
|
|
Streator Cayuga Ridge South
|
|
150 (Gamesa, 2.0MW)
|
|
300
|
|
2010
|
|
MRO
|
|
|
Otter Creek
|
|
17 (Vestas, 3.8 MW);
4 (Vestas, 3.5 MW) |
|
78
|
|
2020
|
|
MRO
|
Iowa
|
|
Barton
|
|
80 (Gamesa, 2.0 MW)
|
|
160
|
|
2009
|
|
MRO
|
|
|
Flying Cloud
|
|
29 (GE, 1.5 MW)
|
|
44
|
|
2004
|
|
MRO
|
|
|
New Harvest
|
|
50 (Gamesa G87, 2.0W)
|
|
100
|
|
2012
|
|
MRO
|
Location
|
|
Wind Project
|
|
Turbines
|
|
Total Installed Capacity (MW)
|
|
Commercial Operation Date
|
|
North American Electric Reliability Corporation (NERC) Region
|
|
|
Top of Iowa II
|
|
40 (Gamesa G87, 2.0 MW)
|
|
80
|
|
2008
|
|
MRO
|
|
|
Winnebago I
|
|
10 (Gamesa G87, 2.0 MW)
|
|
20
|
|
2008
|
|
MRO
|
Kansas
|
|
Elk River
|
|
100 (GE, 1.5 MW)
|
|
150
|
|
2005
|
|
MRO
|
Massachusetts
|
|
Hoosac
|
|
19 (GE, 1.5 MW)
|
|
29
|
|
2012
|
|
NPCC
|
Minnesota
|
|
Elm Creek
|
|
66 (GE, 1.5 MW)
|
|
99
|
|
2008
|
|
MRO
|
|
|
Elm Creek II
|
|
62 (Mitsubishi, 2.4)
|
|
149
|
|
2010
|
|
MRO
|
|
|
MinnDakota
|
|
100 (GE, 1.5 MW)
|
|
150
|
|
2008
|
|
MRO
|
|
|
Moraine I
|
|
34 (GE, 1.5 MW)
|
|
51
|
|
2003
|
|
MRO
|
|
|
Moraine II
|
|
33 (GE, 1.5 MW)
|
|
50
|
|
2009
|
|
MRO
|
|
|
Trimont
|
|
67 (GE, 1.5 MW)
|
|
101
|
|
2005
|
|
MRO
|
Missouri
|
|
Farmers City
|
|
73 (Gamesa G87, 2.0 MW)
|
|
146
|
|
2009
|
|
MRO
|
New Hampshire
|
|
Groton
|
|
24 (Gamesa G87, 2.0 MW)
|
|
48
|
|
2012
|
|
NPCC
|
|
|
Lempster
|
|
12 (Gamesa G87, 2 MW)
|
|
24
|
|
2008
|
|
NPCC
|
New Mexico
|
|
El Cabo
|
|
140 (Gamesa G114, 2.1 MW);
2 (Gamesa G114, 2.0 MW) |
|
298
|
|
2017
|
|
WECC
|
New York
|
|
Hardscrabble
|
|
37 (Gamesa G90, 2.0 MW)
|
|
74
|
|
2011
|
|
NPCC
|
|
|
Maple Ridge I(2)
|
|
70 (Vestas V82, 1.65 MW)
|
|
116
|
|
2006
|
|
NPCC
|
|
|
Maple Ridge II(2)
|
|
27 (Vestas V82, 1.65 MW)
|
|
45
|
|
2006
|
|
NPCC
|
North Carolina
|
|
Desert Wind
|
|
104 (Gamesa G114, 2.0 MW)
|
|
208
|
|
2016
|
|
SERC
|
North Dakota
|
|
Rugby
|
|
71 (Suzlon S88, 2.1 MW)
|
|
149
|
|
2009
|
|
MRO
|
Ohio
|
|
Blue Creek
|
|
152 (Gamesa G90 – 2.0 MW)
|
|
304
|
|
2012
|
|
RFC
|
Oregon
|
|
Hay Canyon
|
|
48 (Suzlon S88, 2.1 MW)
|
|
101
|
|
2009
|
|
WECC
|
|
|
Klondike I
|
|
16 (GE, 1.5 S – 1.5 MW)
|
|
24
|
|
2001
|
|
WECC
|
|
|
Klondike II
|
|
50 (GE, 1.5 S – 1.5 MW)
|
|
75
|
|
2005
|
|
WECC
|
|
|
Klondike III
|
|
44 (Siemens, 2.3 MW);
80 (GE, 1.5 SLE, 1.5 MW); 1 (Mitsubishi, 2.4 MW) |
|
224
|
|
2007
|
|
WECC
|
|
|
Klondike IIIa
|
|
51 (GE, 1.5 MW)
|
|
77
|
|
2008
|
|
WECC
|
|
|
Leaning Juniper II
|
|
74 (GE, 1.5 MW);
42 (Suzlon, 2.1 MW) |
|
199
|
|
2011
|
|
WECC
|
|
|
Montague
|
|
51 (Vestas, 3.6 MW);
5 (Suzlon, 3.45 MW) |
|
201
|
|
2019
|
|
WECC
|
|
|
Pebble Springs
|
|
47 (Suzlon, 2.1 MW)
|
|
99
|
|
2009
|
|
WECC
|
|
|
Star Point
|
|
47 (Suzlon, 2.1 MW)
|
|
99
|
|
2010
|
|
WECC
|
Pennsylvania
|
|
Casselman
|
|
23 (GE, 1.5 MW)
|
|
35
|
|
2008
|
|
RFC
|
|
|
Locust Ridge I
|
|
13 (Gamesa G87, 2.0)
|
|
26
|
|
2006
|
|
RFC
|
|
|
Locust Ridge II
|
|
50 (Gamesa G87, 2.0 MW)
|
|
100
|
|
2009
|
|
RFC
|
|
|
South Chestnut
|
|
22 (Gamesa, 2.0 MW)
|
|
44
|
|
2012
|
|
RFC
|
South Dakota
|
|
Buffalo Ridge I
|
|
24 (Suzlon, 2.1 MW)
|
|
50
|
|
2009
|
|
MRO
|
|
|
Buffalo Ridge II
|
|
105 (Gamesa G87, 2.0 MW)
|
|
210
|
|
2010
|
|
MRO
|
|
|
Coyote Ridge (3)
|
|
35 (GE, 2.52 MW);
8 (GE, 2.3 MW) |
|
20
|
|
2019
|
|
MRO
|
Texas
|
|
Baffin
|
|
101 (Gamesa G97, 2.0 MW)
|
|
202
|
|
2015
|
|
TRE
|
|
|
Barton Chapel
|
|
60 (Gamesa, 2.0 MW)
|
|
120
|
|
2009
|
|
TRE
|
|
|
Karankawa
|
|
93 (GE, 2.52 MW);
22 (GE, 2.3 MW); 9 (GE, 2.5 MW) |
|
307
|
|
2019
|
|
TRE
|
|
|
Patriot
|
|
58 (Vestas, 3.6 MW);
5 (Vestas, 3.45 MW) |
|
226
|
|
2019
|
|
TRE
|
|
|
Peñascal I
|
|
84 (Mitsubishi, 2.4 MW)
|
|
202
|
|
2009
|
|
TRE
|
|
|
Peñascal II
|
|
83 (Mitsubishi, 2.4 MW)
|
|
199
|
|
2010
|
|
TRE
|
Vermont
|
|
Deerfield
|
|
7 (Gamesa G87, 2.0 MW);
8 (Gamesa G97, 2.0 MW) |
|
30
|
|
2017
|
|
NPCC
|
Washington
|
|
Big Horn I
|
|
133 (GE, 1.5 MW)
|
|
200
|
|
2006
|
|
WECC
|
Location
|
|
Wind Project
|
|
Turbines
|
|
Total Installed Capacity (MW)
|
|
Commercial Operation Date
|
|
North American Electric Reliability Corporation (NERC) Region
|
|
|
Big Horn II
|
|
25 (Gamesa, 2.0 MW)
|
|
50
|
|
2010
|
|
WECC
|
|
|
Juniper Canyon
|
|
63 (Mitsubishi, 2.4 MW)
|
|
151
|
|
2011
|
|
WECC
|
(1)
|
Jointly owned with Axium; capacity amounts represent only Renewables’ share of the wind farm.
|
(2)
|
Jointly owned with Horizon Wind Energy; capacity amounts represent only Renewables’ share of the wind farm.
|
(3)
|
Jointly owned with WEC Infrastructure; capacity amounts represent only Renewables’ share of the wind farm.
|
Facility
|
|
Location
|
|
Type of Facility
|
|
Installed Capacity (MW)
|
|
Commercial Operation Date
|
|
Poseidon Solar(1)
|
|
Pinal County, Arizona
|
|
Solar
|
|
10
|
|
2011
|
|
San Luis Valley Solar Ranch(2)
|
|
Alamosa County, Colorado
|
|
Solar
|
|
30
|
|
2012
|
|
Gala Solar
|
|
Deschutes County, Oregon
|
|
Solar
|
|
56
|
|
2017
|
|
Wy’East Solar
|
|
Sherman County, Oregon
|
|
Solar
|
|
10
|
|
2018
|
|
Klamath Cogeneration
|
|
Klamath Falls, Oregon
|
|
Thermal
|
|
536
|
|
2001
|
|
Klamath Peakers
|
|
Klamath Falls, Oregon
|
|
Thermal
|
|
100
|
|
2009
|
|
(1)
|
Formerly Copper Crossing Solar Ranch. The name change occurred as part of our sale of a 50% interest in this project in 2019. See Note 22 to the financial statements in Part II, Item 8 of this form 10-K for more information on the sale. Capacity represents the 50% portion owned by Renewables.
|
(2)
|
Operated pursuant to a sale-and-leaseback agreement.
|
Business Segment
|
|
Number of Employees (excluding International Assignees)
|
|
% of Union Workforce Subject to Collective Bargaining Agreement
|
||
Networks
|
|
5,375
|
|
|
60.2
|
%
|
Renewables
|
|
871
|
|
|
—
|
|
Corporate
|
|
351
|
|
|
—
|
|
Total
|
|
6,597
|
|
|
49.0
|
%
|
•
|
the risk factors described in this Annual Report on Form 10-K;
|
•
|
general economic conditions in the U.S. and internationally, including changes in interest rates;
|
•
|
changes in electricity and natural gas prices;
|
•
|
actual, anticipated or unanticipated fluctuations in our quarterly and annual results and those of our competitors;
|
•
|
our businesses, operations, results and prospects;
|
•
|
future mergers and strategic alliances;
|
•
|
market conditions in the energy industry;
|
•
|
changes in law, government regulation, taxes, legal proceedings or other developments;
|
•
|
shortfalls in our operating results from levels forecasted by securities analysts or by us;
|
•
|
investor sentiment toward the stock of energy companies in general;
|
•
|
announcements concerning us or our competitors;
|
•
|
maintenance of acceptable credit ratings or credit quality;
|
•
|
the likelihood, timing and amount of future equity issuances;
|
•
|
the level of dividends and expectations for future dividend levels; and
|
•
|
the general state of the securities markets.
|
•
|
a majority of its board of directors be independent directors;
|
•
|
a compensation committee, or to have such committees be composed entirely of independent directors; and
|
•
|
a nominating and corporate governance committee, or to have such committee composed entirely of independent directors.
|
Location
|
|
Type of Facility
|
|
Lease/Owned
|
|
Size (square feet)
|
|
Orange, Connecticut
|
|
Office
|
|
Owned
|
|
127,310
|
|
Augusta, Maine
|
|
Office
|
|
Leased
|
|
220,400
|
|
Portland, Maine
|
|
Office
|
|
Leased
|
|
15,194
|
|
Rochester, New York
|
|
Office
|
|
Owned
|
|
122,494
|
|
Portland, Oregon
|
|
Office
|
|
Leased
|
|
63,543
|
|
Name
|
|
Age (1)
|
|
Title
|
James P. Torgerson
|
|
67
|
|
Chief Executive Officer
|
Douglas K. Stuver
|
|
56
|
|
Senior Vice President – Chief Financial Officer
|
Scott M. Tremble
|
|
40
|
|
Senior Vice President – Controller
|
Alejandro de Hoz García-Bellido
|
|
52
|
|
President and Chief Executive Officer of Renewables
|
David T. Flanagan
|
|
72
|
|
Executive Chairman of CMP
|
Peter T. Church
|
|
47
|
|
Senior Vice President – Human Resources & Corporate Administration
|
Ignacio Estella
|
|
50
|
|
Senior Vice President – Corporate Development
|
Robert D. Kump
|
|
58
|
|
Deputy Chief Executive Officer and President
|
Carl A. Taylor
|
|
55
|
|
President and Chief Executive Officer of NYSEG and RG&E
|
R. Scott Mahoney
|
|
54
|
|
Senior Vice President – General Counsel and Corporate Secretary
|
Anthony Marone
|
|
56
|
|
President and Chief Executive Officer of Networks
|
(1)
|
Age as of December 31, 2019.
|
|
|
December 17, 2015
|
|
December 31, 2019
|
||||
AVANGRID
|
|
$
|
100.00
|
|
|
$
|
164.50
|
|
S&P 500
|
|
$
|
100.00
|
|
|
$
|
171.70
|
|
S&P Electric Utilities Index
|
|
$
|
100.00
|
|
|
$
|
170.89
|
|
S&P Utilities Index
|
|
$
|
100.00
|
|
|
$
|
172.56
|
|
|
|
Year Ended December 31, (millions, except per share data)
|
||||||||||||||||||
Consolidated Statements of Income Data: *
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Operating Revenues
|
|
$
|
6,338
|
|
|
$
|
6,478
|
|
|
$
|
5,963
|
|
|
$
|
6,018
|
|
|
$
|
4,367
|
|
Operating Income
|
|
1,003
|
|
|
1,127
|
|
|
505
|
|
|
1,194
|
|
|
599
|
|
|||||
Income Before Income Tax
|
|
819
|
|
|
768
|
|
|
123
|
|
|
1,009
|
|
|
302
|
|
|||||
Income tax expense (benefit)
|
|
143
|
|
|
170
|
|
|
(259
|
)
|
|
377
|
|
|
29
|
|
|||||
Net Income
|
|
676
|
|
|
598
|
|
|
382
|
|
|
632
|
|
|
273
|
|
|||||
Net loss (income) attributable to noncontrolling interests
|
|
24
|
|
|
(3
|
)
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|||||
Net Income Attributable to Avangrid, Inc.
|
|
$
|
700
|
|
|
$
|
595
|
|
|
$
|
381
|
|
|
$
|
632
|
|
|
$
|
273
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total Earnings Per Common Share, Basic and Diluted
|
|
$
|
2.26
|
|
|
$
|
1.92
|
|
|
$
|
1.23
|
|
|
$
|
2.04
|
|
|
$
|
1.07
|
|
Weighted-average Number of Common Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
|
309,491,082
|
|
|
309,503,319
|
|
|
309,502,861
|
|
|
309,512,553
|
|
|
254,588,212
|
|
|||||
Diluted
|
|
309,514,910
|
|
|
309,712,628
|
|
|
309,661,883
|
|
|
309,817,322
|
|
|
254,605,111
|
|
Consolidated Balance Sheet Data:*
|
|
|
||||||||||||||||||
As of December 31,
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
(Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total Property, Plant and Equipment
|
|
$
|
25,218
|
|
|
$
|
23,459
|
|
|
$
|
22,669
|
|
|
$
|
21,548
|
|
|
$
|
20,711
|
|
Total Other Assets
|
|
$
|
3,828
|
|
|
$
|
3,675
|
|
|
$
|
3,589
|
|
|
$
|
3,976
|
|
|
$
|
3,795
|
|
Total Assets
|
|
$
|
34,416
|
|
|
$
|
32,167
|
|
|
$
|
31,671
|
|
|
$
|
31,309
|
|
|
$
|
30,743
|
|
As of December 31,
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
(Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Current portion of debt
|
|
$
|
730
|
|
|
$
|
394
|
|
|
$
|
183
|
|
|
$
|
349
|
|
|
$
|
206
|
|
Non-current debt
|
|
$
|
6,716
|
|
|
$
|
5,368
|
|
|
$
|
5,196
|
|
|
$
|
4,510
|
|
|
$
|
4,530
|
|
Total Liabilities
|
|
$
|
18,830
|
|
|
$
|
16,764
|
|
|
$
|
16,575
|
|
|
$
|
16,101
|
|
|
$
|
15,593
|
|
Total Stockholder’s Equity
|
|
$
|
15,237
|
|
|
$
|
15,104
|
|
|
$
|
15,077
|
|
|
$
|
15,195
|
|
|
$
|
15,137
|
|
Total Equity
|
|
$
|
15,586
|
|
|
$
|
15,403
|
|
|
$
|
15,096
|
|
|
$
|
15,208
|
|
|
$
|
15,150
|
|
•
|
New York State Electric & Gas Corporation, or NYSEG, which serves electric and natural gas customers across more than 40% of the upstate New York geographic area;
|
•
|
Rochester Gas and Electric Corporation, or RG&E, which serves electric and natural gas customers within a nine-county region in western New York, centered around Rochester;
|
•
|
The United Illuminating Company, or UI, which serves electric customers in southwestern Connecticut;
|
•
|
Central Maine Power Company, or CMP, which serves electric customers in central and southern Maine;
|
•
|
The Southern Connecticut Gas Company, or SCG, which serves natural gas customers in Connecticut;
|
•
|
Connecticut Natural Gas Corporation, or CNG, which serves natural gas customers in Connecticut;
|
•
|
The Berkshire Gas Company, or BGC, which serves natural gas customers in western Massachusetts; and
|
•
|
Maine Natural Gas Corporation, or MNG, which serves natural gas customers in several communities in central and southern Maine.
|
|
|
May 1, 2016
|
|
May 1, 2017
|
|
May 1, 2018
|
|||||||||||||||
|
|
Rate Increase
|
|
Delivery Rate Increase
|
|
Rate Increase
|
|
Delivery Rate Increase
|
|
Rate Increase
|
|
Delivery Rate Increase
|
|||||||||
Utility
|
|
(Millions)
|
|
%
|
|
(Millions)
|
|
%
|
|
(Millions)
|
|
%
|
|||||||||
NYSEG Electric
|
|
$
|
29.6
|
|
|
4.10
|
%
|
|
$
|
29.9
|
|
|
4.10
|
%
|
|
$
|
30.3
|
|
|
4.10
|
%
|
NYSEG Gas
|
|
$
|
13.1
|
|
|
7.30
|
%
|
|
$
|
13.9
|
|
|
7.30
|
%
|
|
$
|
14.8
|
|
|
7.30
|
%
|
RG&E Electric
|
|
$
|
3.0
|
|
|
0.70
|
%
|
|
$
|
21.6
|
|
|
5.00
|
%
|
|
$
|
25.9
|
|
|
5.70
|
%
|
RG&E Gas
|
|
$
|
8.8
|
|
|
5.20
|
%
|
|
$
|
7.7
|
|
|
4.40
|
%
|
|
$
|
9.5
|
|
|
5.20
|
%
|
|
|
Requested Revenue Increase
|
|
Delivery Revenue
|
|
Total Revenue
|
||||
Utility
|
|
(Millions)
|
|
%
|
|
%
|
||||
NYSEG Electric
|
|
$
|
156.7
|
|
|
20.4
|
%
|
|
10.4
|
%
|
NYSEG Gas
|
|
$
|
6.3
|
|
|
3.0
|
%
|
|
1.4
|
%
|
RG&E Electric
|
|
$
|
31.7
|
|
|
7.0
|
%
|
|
4.1
|
%
|
RG&E Gas
|
|
$
|
5.8
|
|
|
3.3
|
%
|
|
1.4
|
%
|
•
|
Rate credits of $1.25 million/year for ten years (2018-2027) to CNG customers.
|
•
|
Rate credits of $0.75 million/year for ten years (2018-2027) to SCG customers.
|
•
|
Maintaining charitable contribution at historical contribution levels (between $500,000 and $800,000) for at least four years.
|
|
|
Year Ended December 31, 2019
|
||||||||||||||
|
|
Total
|
|
Networks
|
|
Renewables
|
|
Other(1)
|
||||||||
|
|
(in millions)
|
||||||||||||||
Operating Revenues
|
|
$
|
6,338
|
|
|
$
|
5,164
|
|
|
$
|
1,186
|
|
|
$
|
(12
|
)
|
Operating Expenses
|
|
|
|
|
|
|
|
|
||||||||
Purchased power, natural gas and fuel used
|
|
1,509
|
|
|
1,249
|
|
|
260
|
|
|
—
|
|
||||
Operations and maintenance
|
|
2,301
|
|
|
1,928
|
|
|
392
|
|
|
(19
|
)
|
||||
Loss from assets held for sale
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Depreciation and amortization
|
|
934
|
|
|
550
|
|
|
383
|
|
|
1
|
|
||||
Taxes other than income taxes
|
|
591
|
|
|
544
|
|
|
56
|
|
|
(9
|
)
|
||||
Total Operating Expenses
|
|
5,335
|
|
|
4,271
|
|
|
1,091
|
|
|
(27
|
)
|
||||
Operating Income
|
|
1,003
|
|
|
893
|
|
|
95
|
|
|
15
|
|
||||
Other Income (Expense)
|
|
|
|
|
|
|
|
|
||||||||
Other income (expense)
|
|
119
|
|
|
(17
|
)
|
|
155
|
|
|
(19
|
)
|
||||
Earnings (losses) from equity method investments
|
|
3
|
|
|
11
|
|
|
(8
|
)
|
|
—
|
|
||||
Interest expense, net of capitalization
|
|
(306
|
)
|
|
(269
|
)
|
|
(10
|
)
|
|
(27
|
)
|
||||
Income Before Income Tax
|
|
819
|
|
|
618
|
|
|
232
|
|
|
(31
|
)
|
||||
Income tax (benefit) expense
|
|
143
|
|
|
153
|
|
|
4
|
|
|
(14
|
)
|
||||
Net Income (Loss)
|
|
676
|
|
|
465
|
|
|
228
|
|
|
(17
|
)
|
||||
Net loss (income) attributable to noncontrolling interests
|
|
24
|
|
|
(2
|
)
|
|
26
|
|
|
—
|
|
||||
Net Income (loss) Attributable to Avangrid, Inc.
|
|
$
|
700
|
|
|
$
|
463
|
|
|
$
|
254
|
|
|
$
|
(17
|
)
|
|
|
Year Ended December 31, 2018
|
||||||||||||||
|
|
Total
|
|
Networks
|
|
Renewables
|
|
Other(1)
|
||||||||
|
|
(in millions)
|
||||||||||||||
Operating Revenues
|
|
$
|
6,478
|
|
|
$
|
5,310
|
|
|
$
|
1,139
|
|
|
$
|
29
|
|
Operating Expenses
|
|
|
|
|
|
|
|
|
||||||||
Purchased power, natural gas and fuel used
|
|
1,653
|
|
|
1,423
|
|
|
228
|
|
|
2
|
|
||||
Operations and maintenance
|
|
2,248
|
|
|
1,880
|
|
|
366
|
|
|
2
|
|
||||
Loss from assets held for sale
|
|
16
|
|
|
—
|
|
|
—
|
|
|
16
|
|
||||
Depreciation and amortization
|
|
855
|
|
|
503
|
|
|
352
|
|
|
—
|
|
||||
Taxes other than income taxes
|
|
579
|
|
|
529
|
|
|
57
|
|
|
(7
|
)
|
||||
Total Operating Expenses
|
|
5,351
|
|
|
4,335
|
|
|
1,003
|
|
|
13
|
|
||||
Operating Income
|
|
1,127
|
|
|
975
|
|
|
136
|
|
|
16
|
|
||||
Other Income (Expense)
|
|
|
|
|
|
|
|
|
||||||||
Other income (expense)
|
|
(66
|
)
|
|
(79
|
)
|
|
18
|
|
|
(5
|
)
|
||||
Earnings (losses) from equity method investments
|
|
10
|
|
|
13
|
|
|
(3
|
)
|
|
—
|
|
||||
Interest expense, net of capitalization
|
|
(303
|
)
|
|
(260
|
)
|
|
(33
|
)
|
|
(10
|
)
|
||||
Income Before Income Tax
|
|
768
|
|
|
649
|
|
|
118
|
|
|
1
|
|
||||
Income tax expense (benefit)
|
|
170
|
|
|
169
|
|
|
(31
|
)
|
|
32
|
|
||||
Net Income (Loss)
|
|
598
|
|
|
480
|
|
|
149
|
|
|
(31
|
)
|
||||
Net income attributable to noncontrolling interests
|
|
(3
|
)
|
|
(2
|
)
|
|
(1
|
)
|
|
—
|
|
||||
Net Income (loss) Attributable to Avangrid, Inc.
|
|
$
|
595
|
|
|
$
|
478
|
|
|
$
|
148
|
|
|
$
|
(31
|
)
|
|
|
Year Ended December 31, 2017
|
||||||||||||||
|
|
Total
|
|
Networks
|
|
Renewables
|
|
Other(1)
|
||||||||
|
|
(in millions)
|
||||||||||||||
Operating Revenues
|
|
$
|
5,963
|
|
|
$
|
4,961
|
|
|
$
|
1,047
|
|
|
$
|
(45
|
)
|
Operating Expenses
|
|
|
|
|
|
|
|
|
||||||||
Purchased power, natural gas and fuel used
|
|
1,338
|
|
|
1,153
|
|
|
225
|
|
|
(40
|
)
|
||||
Operations and maintenance
|
|
2,091
|
|
|
1,721
|
|
|
354
|
|
|
16
|
|
||||
Loss from assets held for sale
|
|
642
|
|
|
—
|
|
|
—
|
|
|
642
|
|
||||
Depreciation and amortization
|
|
824
|
|
|
474
|
|
|
325
|
|
|
25
|
|
||||
Taxes other than income taxes
|
|
563
|
|
|
499
|
|
|
51
|
|
|
13
|
|
||||
Total Operating Expenses
|
|
5,458
|
|
|
3,847
|
|
|
955
|
|
|
656
|
|
||||
Operating Income (Loss)
|
|
505
|
|
|
1,114
|
|
|
92
|
|
|
(701
|
)
|
||||
Other Income (Expense)
|
|
|
|
|
|
|
|
|
||||||||
Other income (expense)
|
|
(62
|
)
|
|
(72
|
)
|
|
4
|
|
|
6
|
|
||||
Earnings (losses) from equity method investments
|
|
(40
|
)
|
|
15
|
|
|
(55
|
)
|
|
—
|
|
||||
Interest expense, net of capitalization
|
|
(280
|
)
|
|
(244
|
)
|
|
(28
|
)
|
|
(8
|
)
|
||||
Income Before Income Tax
|
|
123
|
|
|
813
|
|
|
13
|
|
|
(703
|
)
|
||||
Income tax expense (benefit)
|
|
(259
|
)
|
|
316
|
|
|
(320
|
)
|
|
(255
|
)
|
||||
Net Income (Loss)
|
|
382
|
|
|
497
|
|
|
333
|
|
|
(448
|
)
|
||||
Net income attributable to noncontrolling interests
|
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
||||
Net Income (loss) Attributable to Avangrid, Inc.
|
|
$
|
381
|
|
|
$
|
496
|
|
|
$
|
333
|
|
|
$
|
(448
|
)
|
|
|
Year Ended December 31, 2019
|
||||||||||||||
|
|
Total
|
|
Networks
|
|
Renewables
|
|
Corporate *
|
||||||||
|
|
(in millions)
|
||||||||||||||
Net Income Attributable to Avangrid, Inc.
|
|
$
|
700
|
|
|
$
|
463
|
|
|
$
|
254
|
|
|
$
|
(17
|
)
|
Adjustments:
|
|
|
|
|
|
|
|
|
||||||||
Mark-to-market adjustments - Renewables
|
|
(76
|
)
|
|
—
|
|
|
(76
|
)
|
|
—
|
|
||||
Restructuring charges
|
|
6
|
|
|
3
|
|
|
1
|
|
|
3
|
|
||||
Accelerated depreciation from repowering
|
|
33
|
|
|
—
|
|
|
33
|
|
|
—
|
|
||||
Income tax impact of adjustments (1)
|
|
10
|
|
|
(1
|
)
|
|
11
|
|
|
(1
|
)
|
||||
Adjusted Net Income (2)
|
|
$
|
673
|
|
|
$
|
466
|
|
|
$
|
223
|
|
|
$
|
(15
|
)
|
|
|
Year Ended December 31, 2018
|
||||||||||||||||||
|
|
Total
|
|
Networks
|
|
Renewables
|
|
Corporate *
|
|
Gas Storage
|
||||||||||
|
|
(in millions)
|
||||||||||||||||||
Net Income (Loss) Attributable to Avangrid, Inc.
|
|
$
|
595
|
|
|
$
|
478
|
|
|
$
|
148
|
|
|
$
|
(12
|
)
|
|
$
|
(19
|
)
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Mark-to-market adjustments - Renewables
|
|
25
|
|
|
—
|
|
|
25
|
|
|
—
|
|
|
—
|
|
|||||
Restructuring charges
|
|
4
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Loss from held for sale measurement
|
|
16
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16
|
|
|||||
Impact of the Tax Act
|
|
46
|
|
|
5
|
|
|
16
|
|
|
25
|
|
|
—
|
|
|||||
Accelerated depreciation from repowering
|
|
3
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|||||
Income tax impact of adjustments (1)
|
|
6
|
|
|
(1
|
)
|
|
(7
|
)
|
|
—
|
|
|
14
|
|
|||||
Gas Storage, net of tax
|
|
(11
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(11
|
)
|
|||||
Adjusted Net Income (2)
|
|
$
|
684
|
|
|
$
|
486
|
|
|
$
|
185
|
|
|
$
|
13
|
|
|
$
|
—
|
|
|
|
Year Ended December 31, 2017
|
||||||||||||||||||
|
|
Total
|
|
Networks
|
|
Renewables
|
|
Corporate *
|
|
Gas Storage
|
||||||||||
|
|
(in millions)
|
||||||||||||||||||
Net Income (Loss) Attributable to Avangrid, Inc.
|
|
$
|
381
|
|
|
$
|
496
|
|
|
$
|
333
|
|
|
$
|
60
|
|
|
$
|
(508
|
)
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Mark-to-market adjustments - Renewables
|
|
15
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
—
|
|
|||||
Restructuring charges
|
|
20
|
|
|
20
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Loss from held for sale measurement
|
|
642
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
642
|
|
|||||
Impact of the Tax Act
|
|
(328
|
)
|
|
(2
|
)
|
|
(301
|
)
|
|
(5
|
)
|
|
(20
|
)
|
|||||
Impairment of equity method investment
|
|
49
|
|
|
—
|
|
|
49
|
|
|
—
|
|
|
—
|
|
|||||
Income tax impact of adjustments (1)
|
|
(162
|
)
|
|
(8
|
)
|
|
24
|
|
|
—
|
|
|
(179
|
)
|
|||||
Gas Storage, net of tax
|
|
64
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
64
|
|
|||||
Adjusted Net Income (2)
|
|
$
|
682
|
|
|
$
|
507
|
|
|
$
|
120
|
|
|
$
|
55
|
|
|
$
|
—
|
|
(1)
|
Income tax impact of adjustments: $20 million from MtM adjustment, $(9) million from accelerated depreciation, $(2) million from restructuring charges, for the year ended December 31, 2019. $(6) million from MtM adjustment, $(1) million from accelerated depreciation, $(1) million from restructuring charges, $14 million from loss from held for sale measurement for the year ended December 31, 2018. Income tax impact of $(5) million from MtM adjustment, $(8) million from restructuring charges, $(13) million from OTTI on an equity method investment, $(179) million from loss from held for sale measurement and $43 million from adjustment to unitary income taxes as a result of expected future sale of Gas for the year ended December 31, 2017.
|
(2)
|
Adjusted Net Income is a non-GAAP financial measure and is presented after excluding restructuring charges, OTTI on equity method investment, loss from held for sale measurement, impact of the Tax Act, accelerated depreciation derived from repowering of a wind farm, MtM activities in Renewables and Gas storage businesses.
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
|
(in millions)
|
||||||||||
Networks
|
|
$
|
463
|
|
|
$
|
478
|
|
|
$
|
496
|
|
Renewables
|
|
254
|
|
|
148
|
|
|
333
|
|
|||
Corporate (1)
|
|
(17
|
)
|
|
(12
|
)
|
|
60
|
|
|||
Gas Storage
|
|
—
|
|
|
(19
|
)
|
|
(508
|
)
|
|||
Net Income
|
|
$
|
700
|
|
|
$
|
595
|
|
|
$
|
381
|
|
Adjustments:
|
|
|
|
|
|
|
||||||
Mark-to-market adjustments - Renewables (2)
|
|
(76
|
)
|
|
25
|
|
|
15
|
|
|||
Restructuring charges (3)
|
|
6
|
|
|
4
|
|
|
20
|
|
|||
Loss from held for sale measurement (4)
|
|
—
|
|
|
16
|
|
|
642
|
|
|||
Impact of the Tax Act (5)
|
|
—
|
|
|
46
|
|
|
(328
|
)
|
|||
Accelerated depreciation from repowering (6)
|
|
33
|
|
|
3
|
|
|
—
|
|
|||
Impairment of equity method and other investment (7)
|
|
—
|
|
|
—
|
|
|
49
|
|
|||
Income tax impact of adjustments
|
|
10
|
|
|
6
|
|
|
(162
|
)
|
|||
Gas Storage, net of tax
|
|
—
|
|
|
(11
|
)
|
|
64
|
|
|||
Adjusted Net Income (8)
|
|
$
|
673
|
|
|
$
|
684
|
|
|
$
|
682
|
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
Networks
|
|
$
|
1.50
|
|
|
$
|
1.54
|
|
|
$
|
1.60
|
|
Renewables
|
|
0.82
|
|
|
0.48
|
|
|
1.08
|
|
|||
Corporate (1)
|
|
(0.06
|
)
|
|
(0.04
|
)
|
|
0.19
|
|
|||
Gas Storage
|
|
—
|
|
|
(0.06
|
)
|
|
(1.64
|
)
|
|||
Earnings Per Share
|
|
$
|
2.26
|
|
|
$
|
1.92
|
|
|
$
|
1.23
|
|
Adjustments:
|
|
|
|
|
|
|
||||||
Mark-to-market adjustments - Renewables (2)
|
|
(0.25
|
)
|
|
0.08
|
|
|
0.05
|
|
|||
Restructuring charges (3)
|
|
0.02
|
|
|
0.01
|
|
|
0.07
|
|
|||
Loss from held for sale measurement (4)
|
|
—
|
|
|
0.05
|
|
|
2.08
|
|
|||
Impact of the Tax Act (5)
|
|
—
|
|
|
0.15
|
|
|
(1.06
|
)
|
|||
Accelerated depreciation from repowering (6)
|
|
0.11
|
|
|
0.01
|
|
|
—
|
|
|||
Impairment of equity method and other investment (7)
|
|
—
|
|
|
—
|
|
|
0.16
|
|
|||
Income tax impact of adjustments
|
|
0.03
|
|
|
0.02
|
|
|
(0.52
|
)
|
|||
Gas Storage, net of tax
|
|
—
|
|
|
(0.04
|
)
|
|
0.21
|
|
|||
Adjusted Earnings Per Share (8)
|
|
$
|
2.17
|
|
|
$
|
2.21
|
|
|
$
|
2.20
|
|
(1)
|
Includes corporate and other non-regulated entities as well as intersegment eliminations.
|
(2)
|
Mark-to-market earnings relates to earnings impacts from changes in the fair value of Renewables' derivative instruments associated with electricity and natural gas.
|
(3)
|
Restructuring and severance related charges relate to costs resulting from restructuring actions involving initial targeted voluntary workforce reductions and related costs in our plan to vacate a lease, predominantly within the Networks segment and costs to implement an initiative to mitigate costs and achieve sustainable growth.
|
(4)
|
Represents loss from measurement of assets and liabilities held for sale in connection with the sale of the gas trading and storage businesses.
|
(5)
|
Represents the impact from measurement of deferred income tax balances as a result of the Tax Act enacted by the U.S. federal government on December 22, 2017.
|
(6)
|
Represents the amount of accelerated depreciation derived from the repowering of wind farms in Renewables.
|
(7)
|
Includes OTTI on equity method investment recorded in 2017.
|
(8)
|
Adjusted Net Income and Adjusted Earnings Per Share are non-GAAP financial measures and are presented after excluding restructuring charges, OTTI on equity method investment, loss from held for sale measurement, impact of the Tax Act, accelerated depreciation derived from the repowering wind farms, MtM activities in Renewables and Gas storage businesses.
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
|
(in millions)
|
||||||||||
NYSEG
|
|
$
|
574
|
|
|
$
|
517
|
|
|
$
|
364
|
|
RG&E
|
|
379
|
|
|
283
|
|
|
303
|
|
|||
CMP
|
|
299
|
|
|
212
|
|
|
252
|
|
|||
MNG
|
|
7
|
|
|
7
|
|
|
3
|
|
|||
UI
|
|
192
|
|
|
153
|
|
|
176
|
|
|||
SCG
|
|
83
|
|
|
57
|
|
|
53
|
|
|||
CNG
|
|
60
|
|
|
55
|
|
|
70
|
|
|||
BGC
|
|
19
|
|
|
17
|
|
|
18
|
|
|||
Total
|
|
$
|
1,613
|
|
|
$
|
1,301
|
|
|
$
|
1,239
|
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
|
(in millions)
|
||||||||||
Wind & solar
|
|
$
|
1,281
|
|
|
$
|
277
|
|
|
$
|
902
|
|
Thermal
|
|
7
|
|
|
25
|
|
|
17
|
|
|||
Corporate(1)
|
|
13
|
|
|
13
|
|
|
10
|
|
|||
Total capital expenditures
|
|
$
|
1,301
|
|
|
$
|
315
|
|
|
$
|
929
|
|
(1)
|
Includes information technology and facilities and safety (security).
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
|
(in millions)
|
||||||||||
Cash Flows
|
|
|
|
|
|
|
|
|
|
|||
Net cash provided by operating activities
|
|
$
|
1,593
|
|
|
$
|
1,791
|
|
|
$
|
1,763
|
|
Net cash used in investing activities
|
|
(2,713
|
)
|
|
(1,564
|
)
|
|
(2,341
|
)
|
|||
Net cash provided by (used in) from financing activities
|
|
1,261
|
|
|
(230
|
)
|
|
528
|
|
|||
Net decrease in cash, cash equivalents and restricted cash
|
|
$
|
141
|
|
|
$
|
(3
|
)
|
|
$
|
(50
|
)
|
|
|
Total
|
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
2024
|
|
Thereafter
|
||||||||||||||
|
|
(in millions)
|
||||||||||||||||||||||||||
Leases(1)
|
|
$
|
293
|
|
|
$
|
24
|
|
|
$
|
20
|
|
|
$
|
13
|
|
|
$
|
57
|
|
|
$
|
6
|
|
|
$
|
173
|
|
Easements (2)
|
|
877
|
|
|
24
|
|
|
25
|
|
|
25
|
|
|
25
|
|
|
25
|
|
|
753
|
|
|||||||
Projected future pension benefit plan contributions(3)
|
|
294
|
|
|
83
|
|
|
56
|
|
|
73
|
|
|
63
|
|
|
19
|
|
|
—
|
|
|||||||
Long-term debt (including current maturities)(4)
|
|
7,446
|
|
|
730
|
|
|
801
|
|
|
363
|
|
|
439
|
|
|
612
|
|
|
4,501
|
|
|||||||
Interest payments(5)
|
|
3,009
|
|
|
291
|
|
|
257
|
|
|
237
|
|
|
221
|
|
|
210
|
|
|
1,793
|
|
|||||||
Material purchase commitments(6)
|
|
1,725
|
|
|
1,372
|
|
|
152
|
|
|
62
|
|
|
43
|
|
|
19
|
|
|
77
|
|
|||||||
Total Contractual Obligations
|
|
$
|
13,644
|
|
|
$
|
2,524
|
|
|
$
|
1,311
|
|
|
$
|
773
|
|
|
$
|
848
|
|
|
$
|
891
|
|
|
$
|
7,297
|
|
(1)
|
Represents lease contracts relating to operational facilities, office building leases, and vehicle and equipment leases. These amounts represent our expected unadjusted portion of the costs to pay as amounts related to contingent payments are predominantly linked to electricity generation at the respective facilities. The category now includes finance leases after the adoption of ASC 842 in 2019.
|
(2)
|
Represents easement contracts which no longer qualify as leases under ASC 842 effective in 2019.
|
(3)
|
The qualified pension plans’ contributions are generally based on the estimated minimum pension contributions required under the Employee Retirement Income Sensitivity Act of 1974, as amended, and the Pension Protection Act of 2006, as well as contributions necessary to avoid benefit restrictions and at-risk status and agreements with state regulatory agencies. These amounts represent estimates that are based on assumptions that are subject to change. The minimum required contributions for years after 2023 are not included as projections beyond 2023 are not available.
|
(4)
|
Includes sinking fund obligations and obligations under capital leases. See debt payment discussion in “Long-term Capital Resources.”
|
(5)
|
Interest payments are estimated based on final maturity dates of debt securities outstanding at December 31, 2019, and do not reflect anticipated future refinancing, early redemptions or debt issuances. Variable rate interest obligations are estimated based on rates as of December 31, 2019.
|
(6)
|
Represents forward purchase commitments under power, gas and other arrangements and contractual obligations for material and services on order but not yet delivered at December 31, 2019.
|
|
|
|
|
Impact on 2019 Pension Expense Increase (Decrease)
|
||||||
|
|
Change in Assumption
|
|
Pension Benefits
|
|
Post Retirement
|
||||
|
|
|
|
(in millions)
|
||||||
Increase in discount rate
|
|
50 basis points
|
|
$
|
(17
|
)
|
|
$
|
(2
|
)
|
Decrease in discount rate
|
|
50 basis points
|
|
$
|
17
|
|
|
$
|
2
|
|
Increase in return on plan assets
|
|
50 basis points
|
|
$
|
(13
|
)
|
|
$
|
(1
|
)
|
Decrease in return on plan assets
|
|
50 basis points
|
|
$
|
13
|
|
|
$
|
1
|
|
•
|
Operations are primarily concentrated in the energy industry.
|
•
|
Trade receivables and other financial instruments are predominately with energy, utility and financial services-related companies, as well as municipalities, cooperatives and other trading companies in the U.S., although there is a growing segment of long-term power sales (PPAs) signed with commercial and industrial customers of high credit quality.
|
•
|
Overall credit risk is managed through established credit policies by a Credit Risk Management group that is independent of the energy management function.
|
•
|
Prospective and existing customers are reviewed for creditworthiness based upon established standards, with customers not meeting minimum standards providing various credit enhancements or secured payment terms, such as guarantees, letters of credit or the posting of margin cash collateral.
|
•
|
Master netting agreements are used, where appropriate, to offset cash and non-cash gains and losses arising from derivative instruments with the same counterparty.
|
•
|
analyzing the tax status of the entities and the requirements of the operating and partnership agreement provisions, as well as the partnership tax regulations, and
|
•
|
evaluating the Company’s methodology for calculating the hypothetical liquidation amounts for a partnership in accordance with the operating and partnership agreement provisions, as well as the partnership tax regulations.
|
Years Ended December 31,
|
|
2019
|
|
2018
|
|
2017
|
||||||
(Millions, except for number of shares and per share data)
|
|
|
|
|
|
|
|
|
|
|||
Operating Revenues
|
|
$
|
6,338
|
|
|
$
|
6,478
|
|
|
$
|
5,963
|
|
Operating Expenses
|
|
|
|
|
|
|
||||||
Purchased power, natural gas and fuel used
|
|
1,509
|
|
|
1,653
|
|
|
1,338
|
|
|||
Operations and maintenance
|
|
2,301
|
|
|
2,248
|
|
|
2,091
|
|
|||
Loss from assets held for sale
|
|
—
|
|
|
16
|
|
|
642
|
|
|||
Depreciation and amortization
|
|
934
|
|
|
855
|
|
|
824
|
|
|||
Taxes other than income taxes, net
|
|
591
|
|
|
579
|
|
|
563
|
|
|||
Total Operating Expenses
|
|
5,335
|
|
|
5,351
|
|
|
5,458
|
|
|||
Operating Income
|
|
1,003
|
|
|
1,127
|
|
|
505
|
|
|||
Other Income and (Expense)
|
|
|
|
|
|
|
||||||
Other income (expense)
|
|
119
|
|
|
(66
|
)
|
|
(62
|
)
|
|||
Earnings (losses) from equity method investments
|
|
3
|
|
|
10
|
|
|
(40
|
)
|
|||
Interest expense, net of capitalization
|
|
(306
|
)
|
|
(303
|
)
|
|
(280
|
)
|
|||
Income Before Income Tax
|
|
819
|
|
|
768
|
|
|
123
|
|
|||
Income tax expense (benefit)
|
|
143
|
|
|
170
|
|
|
(259
|
)
|
|||
Net Income
|
|
676
|
|
|
598
|
|
|
382
|
|
|||
Net loss (income) attributable to noncontrolling interests
|
|
24
|
|
|
(3
|
)
|
|
(1
|
)
|
|||
Net Income Attributable to Avangrid, Inc.
|
|
$
|
700
|
|
|
$
|
595
|
|
|
$
|
381
|
|
|
|
|
|
|
|
|
||||||
Earnings Per Common Share, Basic:
|
|
$
|
2.26
|
|
|
$
|
1.92
|
|
|
$
|
1.23
|
|
Earnings Per Common Share, Diluted:
|
|
$
|
2.26
|
|
|
$
|
1.92
|
|
|
$
|
1.23
|
|
Weighted-average Number of Common Shares Outstanding:
|
|
|
|
|
|
|
||||||
Basic
|
|
309,491,082
|
|
|
309,503,319
|
|
|
309,502,861
|
|
|||
Diluted
|
|
309,514,910
|
|
|
309,712,628
|
|
|
309,661,883
|
|
Years Ended December 31,
|
|
2019
|
|
2018
|
|
2017
|
||||||
(Millions)
|
|
|
|
|
|
|
|
|
|
|||
Net Income
|
|
$
|
676
|
|
|
$
|
598
|
|
|
$
|
382
|
|
Other Comprehensive Income
|
|
|
|
|
|
|
||||||
Gain on defined benefit plans, net of income taxes of $(0.3) and $1.1, respectively
|
|
1
|
|
|
3
|
|
|
—
|
|
|||
Amortization of pension cost for nonqualified plans, net of income taxes of $(1.0), $0.3 and $0.2, respectively
|
|
(1
|
)
|
|
1
|
|
|
1
|
|
|||
Unrealized (loss) gain during the year on derivatives qualifying as cash flow hedges, net of income taxes of $(8.6), $(6.6) and $15.2, respectively
|
|
(22
|
)
|
|
(21
|
)
|
|
25
|
|
|||
Reclassification to net income of losses (gains) on cash flow hedges, net of income taxes of $2.7, $(6.5) and $9.3, respectively
|
|
11
|
|
|
(8
|
)
|
|
14
|
|
|||
Other Comprehensive (Loss) Income
|
|
(11
|
)
|
|
(25
|
)
|
|
40
|
|
|||
Comprehensive Income
|
|
665
|
|
|
573
|
|
|
422
|
|
|||
Net loss (income) attributable to noncontrolling interests
|
|
24
|
|
|
(3
|
)
|
|
(1
|
)
|
|||
Comprehensive Income Attributable to Avangrid, Inc.
|
|
$
|
689
|
|
|
$
|
570
|
|
|
$
|
421
|
|
As of December 31,
|
|
2019
|
|
2018
|
||||
(Millions)
|
|
|
|
|
|
|
||
Assets
|
|
|
|
|
|
|
||
Current Assets
|
|
|
|
|
|
|
||
Cash and cash equivalents
|
|
$
|
178
|
|
|
$
|
36
|
|
Accounts receivable and unbilled revenues, net
|
|
1,082
|
|
|
1,142
|
|
||
Accounts receivable from affiliates
|
|
10
|
|
|
6
|
|
||
Derivative assets
|
|
11
|
|
|
16
|
|
||
Fuel and gas in storage
|
|
110
|
|
|
109
|
|
||
Materials and supplies
|
|
141
|
|
|
126
|
|
||
Prepayments and other current assets
|
|
199
|
|
|
229
|
|
||
Regulatory assets
|
|
294
|
|
|
299
|
|
||
Total Current Assets
|
|
2,025
|
|
|
1,963
|
|
||
Total Property, Plant and Equipment ($787 and $726 related to VIEs, respectively)
|
|
25,218
|
|
|
23,459
|
|
||
Operating lease right-of-use assets
|
|
70
|
|
|
—
|
|
||
Equity method investments
|
|
645
|
|
|
366
|
|
||
Other investments
|
|
63
|
|
|
58
|
|
||
Regulatory assets
|
|
2,567
|
|
|
2,640
|
|
||
Deferred income taxes regulatory
|
|
—
|
|
|
6
|
|
||
Other Assets
|
|
|
|
|
||||
Goodwill
|
|
3,119
|
|
|
3,127
|
|
||
Intangible assets
|
|
314
|
|
|
323
|
|
||
Derivative assets
|
|
84
|
|
|
63
|
|
||
Other
|
|
311
|
|
|
162
|
|
||
Total Other Assets
|
|
3,828
|
|
|
3,675
|
|
||
Total Assets
|
|
$
|
34,416
|
|
|
$
|
32,167
|
|
As of December 31,
|
|
2019
|
|
2018
|
||||
(Millions, except share information)
|
|
|
|
|
|
|
||
Liabilities
|
|
|
|
|
|
|
||
Current Liabilities
|
|
|
|
|
|
|
||
Current portion of debt
|
|
$
|
730
|
|
|
$
|
394
|
|
Notes payable
|
|
560
|
|
|
587
|
|
||
Interest accrued
|
|
72
|
|
|
62
|
|
||
Accounts payable and accrued liabilities
|
|
1,361
|
|
|
1,132
|
|
||
Accounts payable to affiliates
|
|
64
|
|
|
58
|
|
||
Dividends payable
|
|
136
|
|
|
136
|
|
||
Taxes accrued
|
|
56
|
|
|
59
|
|
||
Operating lease liabilities
|
|
12
|
|
|
—
|
|
||
Derivative liabilities
|
|
20
|
|
|
44
|
|
||
Other current liabilities
|
|
334
|
|
|
327
|
|
||
Regulatory liabilities
|
|
242
|
|
|
205
|
|
||
Total Current Liabilities
|
|
3,587
|
|
|
3,004
|
|
||
Regulatory liabilities
|
|
3,281
|
|
|
3,223
|
|
||
Other Non-current Liabilities
|
|
|
|
|
|
|
||
Deferred income taxes
|
|
1,814
|
|
|
1,530
|
|
||
Deferred income
|
|
1,274
|
|
|
1,385
|
|
||
Pension and other postretirement
|
|
1,100
|
|
|
1,102
|
|
||
Operating lease liabilities
|
|
65
|
|
|
—
|
|
||
Derivative liabilities
|
|
85
|
|
|
97
|
|
||
Asset retirement obligations
|
|
190
|
|
|
217
|
|
||
Environmental remediation costs
|
|
338
|
|
|
339
|
|
||
Other
|
|
380
|
|
|
499
|
|
||
Total Other Non-current Liabilities
|
|
5,246
|
|
|
5,169
|
|
||
Non-current debt
|
|
6,716
|
|
|
5,368
|
|
||
Total Non-current Liabilities
|
|
15,243
|
|
|
13,760
|
|
||
Total Liabilities
|
|
18,830
|
|
|
16,764
|
|
||
Commitments and Contingencies
|
|
—
|
|
|
—
|
|
||
Equity
|
|
|
|
|
|
|
||
Stockholders' Equity:
|
|
|
|
|
|
|
||
Common stock, $.01 par value, 500,000,000 shares authorized, 309,752,140 shares issued; 309,005,272 shares outstanding
|
|
3
|
|
|
3
|
|
||
Additional paid-in capital
|
|
13,660
|
|
|
13,657
|
|
||
Treasury Stock
|
|
(12
|
)
|
|
(12
|
)
|
||
Retained earnings
|
|
1,681
|
|
|
1,528
|
|
||
Accumulated other comprehensive loss
|
|
(95
|
)
|
|
(72
|
)
|
||
Total Stockholders’ Equity
|
|
15,237
|
|
|
15,104
|
|
||
Noncontrolling interests
|
|
349
|
|
|
299
|
|
||
Total Equity
|
|
15,586
|
|
|
15,403
|
|
||
Total Liabilities and Equity
|
|
$
|
34,416
|
|
|
$
|
32,167
|
|
Years Ended December 31,
|
|
2019
|
|
2018
|
|
2017
|
||||||
(Millions)
|
|
|
|
|
|
|
|
|
|
|||
Cash Flow from Operating Activities
|
|
|
|
|
|
|
|
|
|
|||
Net income
|
|
$
|
676
|
|
|
$
|
598
|
|
|
$
|
382
|
|
Adjustments to reconcile net income to net cash provided by operating activities
|
|
|
|
|
|
|
||||||
Depreciation and amortization
|
|
934
|
|
|
855
|
|
|
824
|
|
|||
Loss from assets held for sale
|
|
—
|
|
|
16
|
|
|
642
|
|
|||
Accretion expenses
|
|
12
|
|
|
12
|
|
|
10
|
|
|||
Regulatory assets/liabilities amortization and carrying cost
|
|
64
|
|
|
73
|
|
|
62
|
|
|||
Pension cost
|
|
91
|
|
|
123
|
|
|
112
|
|
|||
Earnings from equity method investments
|
|
(3
|
)
|
|
(10
|
)
|
|
40
|
|
|||
Distribution of earnings from equity method investments
|
|
12
|
|
|
14
|
|
|
16
|
|
|||
Unrealized (gains) losses on marked to market derivative contracts
|
|
(76
|
)
|
|
22
|
|
|
17
|
|
|||
Gain from divestment and disposal of property
|
|
(135
|
)
|
|
(10
|
)
|
|
(2
|
)
|
|||
Deferred taxes
|
|
138
|
|
|
151
|
|
|
(251
|
)
|
|||
Other non-cash items
|
|
(51
|
)
|
|
(27
|
)
|
|
(73
|
)
|
|||
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|||
Current assets
|
|
126
|
|
|
(117
|
)
|
|
(89
|
)
|
|||
Noncurrent assets
|
|
(152
|
)
|
|
(87
|
)
|
|
218
|
|
|||
Current liabilities
|
|
(5
|
)
|
|
98
|
|
|
116
|
|
|||
Noncurrent liabilities
|
|
(38
|
)
|
|
80
|
|
|
(261
|
)
|
|||
Net Cash Provided by Operating Activities
|
|
1,593
|
|
|
1,791
|
|
|
1,763
|
|
|||
Cash Flow from Investing Activities
|
|
|
|
|
|
|
|
|
|
|||
Capital expenditures
|
|
(2,740
|
)
|
|
(1,787
|
)
|
|
(2,416
|
)
|
|||
Contributions in aid of construction
|
|
74
|
|
|
60
|
|
|
57
|
|
|||
Proceeds from sale of equity method and other investment
|
|
108
|
|
|
186
|
|
|
—
|
|
|||
Proceeds from sale of property, plant and equipment
|
|
18
|
|
|
18
|
|
|
12
|
|
|||
Payments to affiliates
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|||
Cash distribution from equity method investments
|
|
5
|
|
|
4
|
|
|
4
|
|
|||
Other investments and equity method investments, net
|
|
(176
|
)
|
|
(45
|
)
|
|
2
|
|
|||
Net Cash Used in Investing Activities
|
|
(2,713
|
)
|
|
(1,564
|
)
|
|
(2,341
|
)
|
|||
Cash Flow from Financing Activities
|
|
|
|
|
|
|
|
|
|
|||
Non-current debt issuances
|
|
2,137
|
|
|
597
|
|
|
888
|
|
|||
Repayments of non-current debt
|
|
(346
|
)
|
|
(217
|
)
|
|
(305
|
)
|
|||
(Repayments) receipts of other short-term debt, net
|
|
(28
|
)
|
|
(201
|
)
|
|
625
|
|
|||
Repayments of financing leases
|
|
(27
|
)
|
|
(13
|
)
|
|
(33
|
)
|
|||
Payments on tax equity financing arrangements
|
|
—
|
|
|
—
|
|
|
(113
|
)
|
|||
Repurchase of common stock
|
|
—
|
|
|
(4
|
)
|
|
(3
|
)
|
|||
Issuance of common stock
|
|
—
|
|
|
(2
|
)
|
|
(1
|
)
|
|||
Distributions to noncontrolling interests
|
|
(63
|
)
|
|
(76
|
)
|
|
—
|
|
|||
Contributions from noncontrolling interests
|
|
133
|
|
|
223
|
|
|
5
|
|
|||
Dividends paid
|
|
(545
|
)
|
|
(537
|
)
|
|
(535
|
)
|
|||
Net Cash Provided by (Used in) Financing Activities
|
|
1,261
|
|
|
(230
|
)
|
|
528
|
|
|||
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash
|
|
141
|
|
|
(3
|
)
|
|
(50
|
)
|
|||
Cash, Cash Equivalents and Restricted Cash, Beginning of Year
|
|
43
|
|
|
46
|
|
|
96
|
|
|||
Cash, Cash Equivalents and Restricted Cash, End of Year
|
|
$
|
184
|
|
|
$
|
43
|
|
|
$
|
46
|
|
Supplemental Cash Flow Information
|
|
|
|
|
|
|
||||||
Cash paid for interest, net of amounts capitalized
|
|
$
|
266
|
|
|
$
|
224
|
|
|
$
|
202
|
|
Cash paid (refunded) for income taxes
|
|
$
|
2
|
|
|
$
|
(13
|
)
|
|
$
|
13
|
|
|
|
Avangrid, Inc. Stockholders
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
(Millions, except for number of shares)
|
|
Number of shares (*)
|
|
Common Stock
|
|
Additional paid-in capital
|
|
Treasury Stock
|
|
Retained Earnings
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
Total Stockholders' Equity
|
|
Non-controlling Interests
|
|
Total Equity
|
|||||||||||||||||
Balances, December 31, 2016
|
|
308,993,149
|
|
|
$
|
3
|
|
|
$
|
13,653
|
|
|
$
|
(5
|
)
|
|
$
|
1,630
|
|
|
$
|
(86
|
)
|
|
$
|
15,195
|
|
|
$
|
13
|
|
|
$
|
15,208
|
|
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
381
|
|
|
—
|
|
|
381
|
|
|
1
|
|
|
382
|
|
||||||||
Other comprehensive income, net of tax of $24.7
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
40
|
|
|
40
|
|
|
—
|
|
|
40
|
|
||||||||
Comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
422
|
|
||||||||||||||||
Dividends declared, $1.728/share
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(535
|
)
|
|
—
|
|
|
(535
|
)
|
|
—
|
|
|
(535
|
)
|
||||||||
Release of common stock held in trust
|
|
5,649
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Issuance of common stock
|
|
70,493
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
||||||||
Repurchase of common stock
|
|
(64,019
|
)
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
(3
|
)
|
||||||||
Stock-based compensation
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
|
|
—
|
|
|
1
|
|
|
|
|
1
|
|
||||||||||
Transaction with noncontrolling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
5
|
|
|
4
|
|
||||||||
Balances, December 31, 2017
|
|
309,005,272
|
|
|
3
|
|
|
13,653
|
|
|
(8
|
)
|
|
1,475
|
|
|
(46
|
)
|
|
15,077
|
|
|
19
|
|
|
15,096
|
|
||||||||
Adoption of accounting standards
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
(1
|
)
|
|
(4
|
)
|
|
140
|
|
|
136
|
|
||||||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
595
|
|
|
—
|
|
|
595
|
|
|
3
|
|
|
598
|
|
||||||||
Other comprehensive income, net of tax of $(11.7)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(25
|
)
|
|
(25
|
)
|
|
—
|
|
|
(25
|
)
|
||||||||
Comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
573
|
|
||||||||||||||||
Dividends declared, $1.744/share
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(540
|
)
|
|
—
|
|
|
(540
|
)
|
|
—
|
|
|
(540
|
)
|
||||||||
Issuance of common stock
|
|
81,208
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
||||||||
Repurchase of common stock
|
|
(81,208
|
)
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
(4
|
)
|
||||||||
Stock-based compensation
|
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
3
|
|
||||||||
Distributions to noncontrolling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(76
|
)
|
|
(76
|
)
|
||||||||
Contributions from noncontrolling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
|
213
|
|
|
217
|
|
||||||||
Balances, December 31, 2018
|
|
309,005,272
|
|
|
3
|
|
|
13,657
|
|
|
(12
|
)
|
|
1,528
|
|
|
(72
|
)
|
|
15,104
|
|
|
299
|
|
|
15,403
|
|
||||||||
Adoption of accounting standards
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
(12
|
)
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
||||||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
700
|
|
|
—
|
|
|
700
|
|
|
(24
|
)
|
|
676
|
|
||||||||
Other comprehensive income, net of tax of $(7.2)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(11
|
)
|
|
(11
|
)
|
|
—
|
|
|
(11
|
)
|
||||||||
Comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
665
|
|
||||||||||||||||
Dividends declared, $1.76/share
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(545
|
)
|
|
—
|
|
|
(545
|
)
|
|
—
|
|
|
(545
|
)
|
||||||||
Stock-based compensation
|
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
3
|
|
||||||||
Distributions to noncontrolling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
(4
|
)
|
|
(59
|
)
|
|
(63
|
)
|
||||||||
Contributions from noncontrolling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
|
—
|
|
|
(9
|
)
|
|
133
|
|
|
124
|
|
||||||||
Balances, December 31, 2019
|
|
309,005,272
|
|
|
$
|
3
|
|
|
$
|
13,660
|
|
|
$
|
(12
|
)
|
|
$
|
1,681
|
|
|
$
|
(95
|
)
|
|
$
|
15,237
|
|
|
$
|
349
|
|
|
$
|
15,586
|
|
(*)
|
Par value of share amounts is $.01
|
Major class
|
|
Asset Category
|
|
Estimated Useful Life (years)
|
|
|
Combined cycle plants
|
|
35-75
|
|
|
Hydroelectric power stations
|
|
45-90
|
Plant
|
|
Wind power stations
|
|
25-40
|
|
|
Transport facilities
|
|
40-75
|
|
|
Distribution facilities
|
|
5-82
|
Equipment
|
|
Conventional meters and measuring devices
|
|
7-41
|
|
|
Computer software
|
|
4-25
|
Other
|
|
Buildings
|
|
30-82
|
|
|
Operations offices
|
|
5-75
|
•
|
Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.
|
•
|
Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability either directly or indirectly, for substantially the full term of the contract.
|
•
|
Level 3 - one or more inputs to the valuation methodology are unobservable or cannot be corroborated with market data.
|
•
|
did not elect the package of three practical expedients available under the transition provisions which would have allowed us to not reassess: (i) whether expired or existing contracts were or contained leases, (ii) the lease classification for expired or existing leases, and (iii) whether previously capitalized initial direct costs for existing leases would qualify for capitalization under ASC 842.
|
•
|
elected the land easement practical expedient and did not reassess land easements that did not meet the definition of a lease prior to adoption.
|
•
|
used hindsight for determining the lease term and assessing the likelihood that a lease purchase option will be exercised in applying the new leases guidance.
|
•
|
did not separate lease and associated non-lease components for transitioned leases, but instead are accounting for them together as a single lease component.
|
|
|
Balance at December 31, 2018
|
|
Adjustments Due to ASC 842
|
|
Balance at January 1, 2019
|
||||||
(Millions)
|
|
|
|
|
|
|
||||||
Assets
|
|
|
|
|
|
|
||||||
Total Property, Plant and Equipment
|
|
$
|
23,459
|
|
|
$
|
(147
|
)
|
|
$
|
23,312
|
|
Operating lease right-of-use assets
|
|
—
|
|
|
82
|
|
|
82
|
|
|||
Other assets
|
|
162
|
|
|
146
|
|
|
308
|
|
|||
Liabilities
|
|
|
|
|
|
|
||||||
Current portion of debt
|
|
$
|
394
|
|
|
$
|
(28
|
)
|
|
$
|
366
|
|
Operating lease liabilities, current
|
|
—
|
|
|
8
|
|
|
8
|
|
|||
Other current liabilities
|
|
327
|
|
|
28
|
|
|
355
|
|
|||
Operating lease liabilities, long-term
|
|
—
|
|
|
74
|
|
|
74
|
|
|||
Other non-current liabilities
|
|
499
|
|
|
61
|
|
|
560
|
|
|||
Non-current debt
|
|
5,368
|
|
|
(61
|
)
|
|
5,307
|
|
|||
Equity
|
|
|
|
|
|
|
||||||
Retained earnings
|
|
$
|
1,528
|
|
|
$
|
(1
|
)
|
|
$
|
1,527
|
|
|
|
Year Ended December 31, 2019
|
||||||||||||||
|
|
Networks
|
|
Renewables
|
|
Other (b)
|
|
Total
|
||||||||
(Millions)
|
|
|
|
|
|
|
|
|
||||||||
Regulated operations – electricity
|
|
$
|
3,485
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,485
|
|
Regulated operations – natural gas
|
|
1,479
|
|
|
—
|
|
|
—
|
|
|
1,479
|
|
||||
Nonregulated operations – wind
|
|
—
|
|
|
805
|
|
|
—
|
|
|
805
|
|
||||
Nonregulated operations – solar
|
|
—
|
|
|
26
|
|
|
—
|
|
|
26
|
|
||||
Nonregulated operations – thermal
|
|
—
|
|
|
29
|
|
|
—
|
|
|
29
|
|
||||
Nonregulated operations – gas storage
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Other(a)
|
|
91
|
|
|
62
|
|
|
(12
|
)
|
|
141
|
|
||||
Revenue from contracts with customers
|
|
5,055
|
|
|
922
|
|
|
(12
|
)
|
|
5,965
|
|
||||
Leasing revenue
|
|
6
|
|
|
—
|
|
|
—
|
|
|
6
|
|
||||
Derivative revenue
|
|
—
|
|
|
244
|
|
|
—
|
|
|
244
|
|
||||
Alternative revenue programs
|
|
75
|
|
|
—
|
|
|
—
|
|
|
75
|
|
||||
Other revenue
|
|
28
|
|
|
20
|
|
|
—
|
|
|
48
|
|
||||
Total operating revenues
|
|
$
|
5,164
|
|
|
$
|
1,186
|
|
|
$
|
(12
|
)
|
|
$
|
6,338
|
|
|
|
Year Ended December 31, 2018
|
||||||||||||||
|
|
Networks
|
|
Renewables
|
|
Other (b)
|
|
Total
|
||||||||
(Millions)
|
|
|
|
|
|
|
|
|
||||||||
Regulated operations – electricity
|
|
$
|
3,641
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,641
|
|
Regulated operations – natural gas
|
|
1,473
|
|
|
—
|
|
|
—
|
|
|
1,473
|
|
||||
Nonregulated operations – wind
|
|
—
|
|
|
637
|
|
|
—
|
|
|
637
|
|
||||
Nonregulated operations – solar
|
|
—
|
|
|
17
|
|
|
—
|
|
|
17
|
|
||||
Nonregulated operations – thermal
|
|
—
|
|
|
47
|
|
|
—
|
|
|
47
|
|
||||
Nonregulated operations – gas storage
|
|
—
|
|
|
—
|
|
|
10
|
|
|
10
|
|
||||
Other(a)
|
|
58
|
|
|
(68
|
)
|
|
9
|
|
|
(1
|
)
|
||||
Revenue from contracts with customers
|
|
5,172
|
|
|
633
|
|
|
19
|
|
|
5,824
|
|
||||
Leasing revenue
|
|
38
|
|
|
346
|
|
|
—
|
|
|
384
|
|
||||
Derivative revenue
|
|
—
|
|
|
124
|
|
|
10
|
|
|
134
|
|
||||
Alternative revenue programs
|
|
80
|
|
|
—
|
|
|
—
|
|
|
80
|
|
||||
Other revenue
|
|
20
|
|
|
36
|
|
|
—
|
|
|
56
|
|
||||
Total operating revenues
|
|
$
|
5,310
|
|
|
$
|
1,139
|
|
|
$
|
29
|
|
|
$
|
6,478
|
|
(a)
|
Primarily includes certain intra-month trading activities, billing, collection, and administrative charges, sundry billings and other miscellaneous revenue.
|
(b)
|
Does not represent a segment. Includes Corporate, Gas and intersegment eliminations.
|
As of December 31, 2019
|
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
2024
|
|
Thereafter
|
|
Total
|
||||||||||||||
(Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Revenue expected to be recognized on multiyear retail energy sales contracts in place
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
5
|
|
Revenue expected to be recognized on multiyear capacity and carbon-free energy sale contracts
|
|
35
|
|
|
27
|
|
|
19
|
|
|
11
|
|
|
8
|
|
|
25
|
|
|
126
|
|
|||||||
Revenue expected to be recognized on multiyear renewable energy credit sale contracts
|
|
22
|
|
|
16
|
|
|
8
|
|
|
5
|
|
|
4
|
|
|
8
|
|
|
63
|
|
|||||||
Total operating revenues
|
|
$
|
58
|
|
|
$
|
44
|
|
|
$
|
28
|
|
|
$
|
17
|
|
|
$
|
13
|
|
|
$
|
33
|
|
|
$
|
194
|
|
|
|
May 1, 2016
|
|
May 1, 2017
|
|
May 1, 2018
|
|||||||||||||||
|
|
Rate Increase
|
|
Delivery Rate Increase
|
|
Rate Increase
|
|
Delivery Rate Increase
|
|
Rate Increase
|
|
Delivery Rate Increase
|
|||||||||
Utility
|
|
(Millions)
|
|
%
|
|
(Millions)
|
|
%
|
|
(Millions)
|
|
%
|
|||||||||
NYSEG Electric
|
|
$
|
29.6
|
|
|
4.10
|
%
|
|
$
|
29.9
|
|
|
4.10
|
%
|
|
$
|
30.3
|
|
|
4.10
|
%
|
NYSEG Gas
|
|
$
|
13.1
|
|
|
7.30
|
%
|
|
$
|
13.9
|
|
|
7.30
|
%
|
|
$
|
14.8
|
|
|
7.30
|
%
|
RG&E Electric
|
|
$
|
3.0
|
|
|
0.70
|
%
|
|
$
|
21.6
|
|
|
5.00
|
%
|
|
$
|
25.9
|
|
|
5.70
|
%
|
RG&E Gas
|
|
$
|
8.8
|
|
|
5.20
|
%
|
|
$
|
7.7
|
|
|
4.40
|
%
|
|
$
|
9.5
|
|
|
5.20
|
%
|
|
|
Requested Revenue Increase
|
|
Delivery Revenue
|
|
Total Revenue
|
||||
Utility
|
|
(Millions)
|
|
%
|
|
%
|
||||
NYSEG Electric
|
|
$
|
156.7
|
|
|
20.4
|
%
|
|
10.4
|
%
|
NYSEG Gas
|
|
$
|
6.3
|
|
|
3.0
|
%
|
|
1.4
|
%
|
RG&E Electric
|
|
$
|
31.7
|
|
|
7.0
|
%
|
|
4.1
|
%
|
RG&E Gas
|
|
$
|
5.8
|
|
|
3.3
|
%
|
|
1.4
|
%
|
As of December 31,
|
|
2019
|
|
2018
|
||||
(Millions)
|
|
|
|
|
||||
Pension and other post-retirement benefits cost deferrals
|
|
$
|
125
|
|
|
$
|
141
|
|
Pension and other post-retirement benefits
|
|
1,061
|
|
|
1,138
|
|
||
Storm costs
|
|
272
|
|
|
346
|
|
||
Rate adjustment mechanism
|
|
79
|
|
|
18
|
|
||
Reliability support services
|
|
—
|
|
|
13
|
|
||
Revenue decoupling mechanism
|
|
19
|
|
|
7
|
|
||
Transmission revenue reconciliation mechanism
|
|
5
|
|
|
11
|
|
||
Contracts for differences
|
|
92
|
|
|
97
|
|
||
Hardship programs
|
|
29
|
|
|
26
|
|
||
Plant decommissioning
|
|
5
|
|
|
11
|
|
||
Deferred purchased gas
|
|
25
|
|
|
37
|
|
||
Deferred transmission expense
|
|
11
|
|
|
11
|
|
||
Environmental remediation costs
|
|
277
|
|
|
278
|
|
||
Debt premium
|
|
97
|
|
|
118
|
|
||
Unamortized losses on reacquired debt
|
|
29
|
|
|
23
|
|
||
Unfunded future income taxes
|
|
399
|
|
|
371
|
|
||
Federal tax depreciation normalization adjustment
|
|
153
|
|
|
157
|
|
||
Asset retirement obligation
|
|
17
|
|
|
18
|
|
||
Deferred meter replacement costs
|
|
27
|
|
|
29
|
|
||
Other
|
|
139
|
|
|
95
|
|
||
Total regulatory assets
|
|
2,861
|
|
|
2,945
|
|
||
Less: current portion
|
|
294
|
|
|
299
|
|
||
Total non-current regulatory assets
|
|
$
|
2,567
|
|
|
$
|
2,646
|
|
As of December 31,
|
|
2019
|
|
2018
|
||||
(Millions)
|
|
|
|
|
||||
Energy efficiency portfolio standard
|
|
$
|
72
|
|
|
$
|
56
|
|
Gas supply charge and deferred natural gas cost
|
|
11
|
|
|
4
|
|
||
Pension and other post-retirement benefits cost deferrals
|
|
80
|
|
|
97
|
|
||
Carrying costs on deferred income tax bonus depreciation
|
|
49
|
|
|
72
|
|
||
Carrying costs on deferred income tax - Mixed Services 263(a)
|
|
15
|
|
|
20
|
|
||
2017 Tax Act
|
|
1,548
|
|
|
1,509
|
|
||
Revenue decoupling mechanism
|
|
17
|
|
|
19
|
|
||
Accrued removal obligations
|
|
1,173
|
|
|
1,153
|
|
||
Asset sale gain account
|
|
10
|
|
|
10
|
|
||
Economic development
|
|
27
|
|
|
28
|
|
||
Positive benefit adjustment
|
|
37
|
|
|
39
|
|
||
Theoretical reserve flow thru impact
|
|
14
|
|
|
19
|
|
||
Deferred property tax
|
|
17
|
|
|
25
|
|
||
Net plant reconciliation
|
|
23
|
|
|
19
|
|
||
Debt rate reconciliation
|
|
67
|
|
|
49
|
|
||
Rate refund – FERC ROE proceeding
|
|
32
|
|
|
29
|
|
||
Transmission congestion contracts
|
|
23
|
|
|
21
|
|
||
Merger-related rate credits
|
|
16
|
|
|
18
|
|
||
Accumulated deferred investment tax credits
|
|
13
|
|
|
14
|
|
||
Asset retirement obligation
|
|
14
|
|
|
13
|
|
||
Earnings sharing provisions
|
|
28
|
|
|
17
|
|
||
Middletown/Norwalk local transmission network service collections
|
|
18
|
|
|
19
|
|
||
Low income programs
|
|
33
|
|
|
38
|
|
||
Non-firm margin sharing credits
|
|
16
|
|
|
10
|
|
||
New York 2018 winter storm settlement
|
|
11
|
|
|
—
|
|
||
Other
|
|
159
|
|
|
130
|
|
||
Total regulatory liabilities
|
|
3,523
|
|
|
3,428
|
|
||
Less: current portion
|
|
242
|
|
|
205
|
|
||
Total non-current regulatory liabilities
|
|
$
|
3,281
|
|
|
$
|
3,223
|
|
As of December 31,
|
|
2019
|
|
2018
|
||||
(Millions)
|
|
|
|
|
|
|
||
Networks
|
|
$
|
2,747
|
|
|
$
|
2,747
|
|
Renewables
|
|
372
|
|
|
380
|
|
||
Total
|
|
$
|
3,119
|
|
|
$
|
3,127
|
|
As of December 31, 2019
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net Carrying Amount
|
||||||
(Millions)
|
|
|
|
|
|
|
|
|
|
|||
Wind development
|
|
$
|
591
|
|
|
$
|
(289
|
)
|
|
$
|
302
|
|
Other
|
|
28
|
|
|
(16
|
)
|
|
12
|
|
|||
Total Intangible Assets
|
|
$
|
619
|
|
|
$
|
(305
|
)
|
|
$
|
314
|
|
As of December 31, 2018
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net Carrying Amount
|
||||||
(Millions)
|
|
|
|
|
|
|
|
|
|
|||
Wind development
|
|
$
|
588
|
|
|
$
|
(275
|
)
|
|
$
|
313
|
|
Other
|
|
25
|
|
|
(15
|
)
|
|
10
|
|
|||
Total Intangible Assets
|
|
$
|
613
|
|
|
$
|
(290
|
)
|
|
$
|
323
|
|
Year ending December 31,
|
|
Amount
|
||
(Millions)
|
|
|
|
|
2020
|
|
$
|
15
|
|
2021
|
|
$
|
14
|
|
2022
|
|
$
|
13
|
|
2023
|
|
$
|
12
|
|
2024
|
|
$
|
12
|
|
As of December 31, 2019
|
|
Regulated
|
|
Nonregulated
|
|
Total
|
||||||
(Millions)
|
|
|
|
|
|
|
|
|
|
|||
Electric generation, distribution, transmission and other
|
|
$
|
15,092
|
|
|
$
|
12,360
|
|
|
$
|
27,452
|
|
Natural gas transportation, distribution and other
|
|
4,387
|
|
|
13
|
|
|
4,400
|
|
|||
Other common operating property
|
|
—
|
|
|
258
|
|
|
258
|
|
|||
Total Property, Plant and Equipment in Service
|
|
19,479
|
|
|
12,631
|
|
|
32,110
|
|
|||
Total accumulated depreciation
|
|
(4,969
|
)
|
|
(4,090
|
)
|
|
(9,059
|
)
|
|||
Total Net Property, Plant and Equipment in Service
|
|
14,510
|
|
|
8,541
|
|
|
23,051
|
|
|||
Construction work in progress
|
|
1,269
|
|
|
898
|
|
|
2,167
|
|
|||
Total Property, Plant and Equipment
|
|
$
|
15,779
|
|
|
$
|
9,439
|
|
|
$
|
25,218
|
|
As of December 31, 2018
|
|
Regulated
|
|
Nonregulated
|
|
Total
|
||||||
(Millions)
|
|
|
|
|
|
|
|
|
|
|||
Electric generation, distribution, transmission and other
|
|
$
|
14,242
|
|
|
$
|
11,669
|
|
|
$
|
25,911
|
|
Natural gas transportation, distribution and other
|
|
4,058
|
|
|
13
|
|
|
4,071
|
|
|||
Other common operating property
|
|
—
|
|
|
226
|
|
|
226
|
|
|||
Total Property, Plant and Equipment in Service (a)
|
|
18,300
|
|
|
11,908
|
|
|
30,208
|
|
|||
Total accumulated depreciation (b)
|
|
(4,615
|
)
|
|
(3,744
|
)
|
|
(8,359
|
)
|
|||
Total Net Property, Plant and Equipment in Service
|
|
13,685
|
|
|
8,164
|
|
|
21,849
|
|
|||
Construction work in progress
|
|
1,010
|
|
|
600
|
|
|
1,610
|
|
|||
Total Property, Plant and Equipment
|
|
$
|
14,695
|
|
|
$
|
8,764
|
|
|
$
|
23,459
|
|
(a)
|
Includes capitalized leases of $226 million primarily related to electric generation, distribution, transmission and other. Finance leases (formerly known as capital leases) are no longer included in property plant and equipment after adoption of ASC 842 on January 1, 2019. See Note 3 for further information.
|
(b)
|
Includes accumulated amortization of capitalized leases of $76 million.
|
(a)
|
Represents a reduction in our estimate of expected cash flows required for retirement activities related to our renewable energy facilities.
|
As of December 31,
|
|
|
|
2019
|
|
2018
|
||||||||
(Millions)
|
|
Maturity Dates
|
|
Balances
|
|
Interest Rates
|
|
Balances
|
|
Interest Rates
|
||||
First mortgage bonds - fixed (a)
|
|
2021-2049
|
|
$
|
2,218
|
|
|
3.07%-8.00%
|
|
$
|
2,055
|
|
|
3.07%-10.06%
|
Unsecured pollution control notes - fixed
|
|
2020-2029
|
|
538
|
|
|
2.00%-3.50%
|
|
526
|
|
|
2.00%-3.50%
|
||
Term loan - variable
|
|
2021
|
|
500
|
|
|
2.40%
|
|
—
|
|
|
|
||
Other various non-current debt - fixed
|
|
2020-2049
|
|
4,228
|
|
|
2.80%-10.48%
|
|
3,127
|
|
|
2.80%-10.48%
|
||
Obligations under capital leases (b)
|
|
|
|
—
|
|
|
|
|
89
|
|
|
4.00%-4.44%
|
||
Unamortized debt issuance costs and discount
|
|
|
|
(38
|
)
|
|
|
|
(35
|
)
|
|
|
||
Total Debt
|
|
|
|
7,446
|
|
|
|
|
5,762
|
|
|
|
||
Less: debt due within one year, included in current liabilities
|
|
|
|
730
|
|
|
|
|
394
|
|
|
|
||
Total Non-current Debt
|
|
|
|
$
|
6,716
|
|
|
|
|
$
|
5,368
|
|
|
|
(a)
|
The first mortgage bonds have pledged collateral of substantially all the respective utility’s in service properties of approximately $6,876 million.
|
(b)
|
Due to the adoption of ASC 842 in 2019 (see Notes 3 and 13 for more information), capital leases, now known as financing leases, are no longer reported as part of long-term debt.
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
2024
|
|
Total
|
||||||||||||
(Millions)
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
$
|
730
|
|
|
$
|
801
|
|
|
$
|
363
|
|
|
$
|
439
|
|
|
$
|
612
|
|
|
$
|
2,945
|
|
•
|
Our equity and other investments consist of Rabbi Trusts for deferred compensation plans and a supplemental retirement benefit life insurance trust. The Rabbi Trusts primarily include equity securities and money market funds. We measure the fair value of our Rabbi Trust portfolio using observable, unadjusted quoted market prices in active markets for identical assets and include the measurements in Level 1. We measure the fair value of the supplemental retirement benefit life insurance trust based on quoted prices in the active markets for the various funds within which the assets are held and include the measurement in Level 2.
|
•
|
NYSEG and RG&E enter into electric energy derivative contracts to hedge the forecasted purchases required to serve their electric load obligations. They hedge their electric load obligations using derivative contracts that are settled based upon Locational Based Marginal Pricing published by the NYISO. NYSEG and RG&E hedge approximately 70% of their electric load obligations using contracts for a NYISO location where an active market exists. The forward market prices used to value the companies’ open electric energy derivative contracts are based on quoted prices in active markets for identical assets or liabilities with no adjustment required and therefore we include the fair value measurements in Level 1.
|
•
|
NYSEG and RG&E enter into natural gas derivative contracts to hedge their forecasted purchases required to serve their natural gas load obligations. The forward market prices used to value open natural gas derivative contracts are exchange-based prices for the identical derivative contracts traded actively on the New York Mercantile Exchange (NYMEX). Because we use prices quoted in an active market we include the fair value measurements in Level 1.
|
•
|
NYSEG, RG&E and CMP enter into fuel derivative contracts to hedge their unleaded and diesel fuel requirements for their fleet vehicles. Exchange-based forward market prices are used, but because an unobservable basis adjustment is added to the forward prices, we include the fair value measurement for these contracts in Level 3.
|
•
|
UI enters into CfDs, which are marked-to-market based on a probability-based expected cash flow analysis that is discounted at risk-free interest rates and an adjustment for non-performance risk using credit default swap rates. We include the fair value measurement for these contracts in Level 3 (See Note 12 for further discussion of CfDs).
|
As of As of December 31, 2019
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Netting
|
|
Total
|
||||||||||
(Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Equity and other investments with readily determinable fair values
|
|
$
|
38
|
|
|
$
|
13
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
51
|
|
Derivative assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative financial instruments - power
|
|
$
|
4
|
|
|
$
|
23
|
|
|
$
|
120
|
|
|
$
|
(54
|
)
|
|
$
|
93
|
|
Derivative financial instruments - gas
|
|
—
|
|
|
40
|
|
|
31
|
|
|
(71
|
)
|
|
—
|
|
|||||
Contracts for differences
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|||||
Total
|
|
$
|
4
|
|
|
$
|
63
|
|
|
$
|
153
|
|
|
$
|
(125
|
)
|
|
$
|
95
|
|
Derivative liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative financial instruments - power
|
|
$
|
(28
|
)
|
|
$
|
(43
|
)
|
|
$
|
(29
|
)
|
|
$
|
92
|
|
|
$
|
(8
|
)
|
Derivative financial instruments - gas
|
|
(4
|
)
|
|
(26
|
)
|
|
(5
|
)
|
|
33
|
|
|
(2
|
)
|
|||||
Contracts for differences
|
|
—
|
|
|
—
|
|
|
(94
|
)
|
|
—
|
|
|
(94
|
)
|
|||||
Derivative financial instruments – Other
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|||||
Total
|
|
$
|
(32
|
)
|
|
$
|
(70
|
)
|
|
$
|
(128
|
)
|
|
$
|
125
|
|
|
$
|
(105
|
)
|
As of As of December 31, 2018
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Netting
|
|
Total
|
||||||||||
(Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Equity and other investments with readily determinable fair values
|
|
$
|
37
|
|
|
$
|
10
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
47
|
|
Derivative assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative financial instruments - power
|
|
$
|
17
|
|
|
$
|
23
|
|
|
$
|
91
|
|
|
$
|
(59
|
)
|
|
$
|
72
|
|
Derivative financial instruments - gas
|
|
1
|
|
|
20
|
|
|
36
|
|
|
(55
|
)
|
|
2
|
|
|||||
Contracts for differences
|
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
5
|
|
|||||
Total
|
|
$
|
18
|
|
|
$
|
43
|
|
|
$
|
132
|
|
|
$
|
(114
|
)
|
|
$
|
79
|
|
Derivative liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative financial instruments - power
|
|
$
|
(12
|
)
|
|
$
|
(41
|
)
|
|
$
|
(36
|
)
|
|
$
|
77
|
|
|
$
|
(12
|
)
|
Derivative financial instruments - gas
|
|
(1
|
)
|
|
(23
|
)
|
|
(7
|
)
|
|
22
|
|
|
(9
|
)
|
|||||
Contracts for differences
|
|
—
|
|
|
—
|
|
|
(102
|
)
|
|
—
|
|
|
(102
|
)
|
|||||
Derivative financial instruments – Other
|
|
—
|
|
|
(16
|
)
|
|
(2
|
)
|
|
—
|
|
|
(18
|
)
|
|||||
Total
|
|
$
|
(13
|
)
|
|
$
|
(80
|
)
|
|
$
|
(147
|
)
|
|
$
|
99
|
|
|
$
|
(141
|
)
|
(Millions)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Fair value as of January 1,
|
|
$
|
(15
|
)
|
|
$
|
6
|
|
|
$
|
31
|
|
Gains for the year recognized in operating revenues
|
|
53
|
|
|
18
|
|
|
18
|
|
|||
Losses for the year recognized in operating revenues
|
|
(2
|
)
|
|
(9
|
)
|
|
(1
|
)
|
|||
Total gains or losses for the period recognized in operating revenues
|
|
51
|
|
|
9
|
|
|
17
|
|
|||
Gains recognized in OCI
|
|
2
|
|
|
—
|
|
|
2
|
|
|||
Losses recognized in OCI
|
|
(3
|
)
|
|
(5
|
)
|
|
(1
|
)
|
|||
Total gains or losses recognized in OCI
|
|
(1
|
)
|
|
(5
|
)
|
|
1
|
|
|||
Net change recognized in regulatory assets and liabilities
|
|
5
|
|
|
(5
|
)
|
|
(17
|
)
|
|||
Purchases
|
|
(22
|
)
|
|
(6
|
)
|
|
(5
|
)
|
|||
Settlements
|
|
4
|
|
|
(10
|
)
|
|
(17
|
)
|
|||
Transfers out of Level 3 (a)
|
|
3
|
|
|
(4
|
)
|
|
(4
|
)
|
|||
Fair value as of December 31,
|
|
$
|
25
|
|
|
$
|
(15
|
)
|
|
$
|
6
|
|
Gains for the year included in operating revenues attributable to the change in unrealized gains relating to financial instruments still held at the reporting date
|
|
$
|
51
|
|
|
$
|
9
|
|
|
$
|
17
|
|
(a)
|
Transfers out of Level 3 were the result of increased observability of market data.
|
|
|
Range at
|
Unobservable Input
|
|
December 31, 2019
|
Risk of non-performance
|
|
0.05% - 0.45%
|
Discount rate
|
|
1.69% - 1.83%
|
Forward pricing ($ per KW-month)
|
|
$3.80 - $7.03
|
As of December 31, 2019
|
|
Current Assets
|
|
Noncurrent Assets
|
|
Current Liabilities
|
|
Noncurrent Liabilities
|
||||||||
(Millions)
|
|
|
|
|
|
|
|
|
||||||||
Not designated as hedging instruments
|
|
|
|
|
|
|
|
|
||||||||
Derivative assets
|
|
$
|
1
|
|
|
$
|
4
|
|
|
$
|
1
|
|
|
$
|
2
|
|
Derivative liabilities
|
|
(1
|
)
|
|
(2
|
)
|
|
(39
|
)
|
|
(86
|
)
|
||||
|
|
—
|
|
|
2
|
|
|
(38
|
)
|
|
(84
|
)
|
||||
Designated as hedging instruments
|
|
|
|
|
|
|
|
|
||||||||
Derivative assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Derivative liabilities
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
||||
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
||||
Total derivatives before offset of cash collateral
|
|
—
|
|
|
2
|
|
|
(39
|
)
|
|
(85
|
)
|
||||
Cash collateral receivable
|
|
—
|
|
|
—
|
|
|
27
|
|
|
1
|
|
||||
Total derivatives as presented in the balance sheet
|
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
(12
|
)
|
|
$
|
(84
|
)
|
As of December 31, 2018
|
|
Current Assets
|
|
Noncurrent Assets
|
|
Current Liabilities
|
|
Noncurrent Liabilities
|
||||||||
(Millions)
|
|
|
|
|
|
|
|
|
||||||||
Not designated as hedging instruments
|
|
|
|
|
|
|
|
|
||||||||
Derivative assets
|
|
$
|
18
|
|
|
$
|
6
|
|
|
$
|
10
|
|
|
$
|
3
|
|
Derivative liabilities
|
|
(10
|
)
|
|
(3
|
)
|
|
(21
|
)
|
|
(93
|
)
|
||||
|
|
8
|
|
|
3
|
|
|
(11
|
)
|
|
(90
|
)
|
||||
Designated as hedging instruments
|
|
|
|
|
|
|
|
|
||||||||
Derivative assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Derivative liabilities
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
||||
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
||||
Total derivatives before offset of cash collateral
|
|
8
|
|
|
3
|
|
|
(13
|
)
|
|
(90
|
)
|
||||
Cash collateral receivable
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total derivatives as presented in the balance sheet
|
|
$
|
8
|
|
|
$
|
3
|
|
|
$
|
(13
|
)
|
|
$
|
(90
|
)
|
As of December 31,
|
|
2019
|
|
2018
|
(Millions)
|
|
|
|
|
Wholesale electricity purchase contracts (MWh)
|
|
5.1
|
|
4.9
|
Natural gas purchase contracts (Dth)
|
|
8.5
|
|
7.8
|
Fleet fuel purchase contracts (Gallons)
|
|
2.2
|
|
2.1
|
(Millions)
|
|
Loss or Gain Recognized in Regulatory Assets/Liabilities
|
|
Location of Loss (Gain) Reclassified from Regulatory Assets/Liabilities into Income
|
|
Loss (Gain) Reclassified from Regulatory Assets/Liabilities into Income
|
|||||||||||||
As of
|
|
|
|
|
|
|
|
For the Year Ended December 31,
|
|||||||||||
December 31, 2019
|
|
Electricity
|
|
Natural Gas
|
|
2019
|
|
|
Electricity
|
|
Natural Gas
|
||||||||
Regulatory assets
|
|
$
|
24
|
|
|
$
|
4
|
|
|
Purchased power, natural gas and fuel used
|
|
|
$
|
25
|
|
|
$
|
1
|
|
Regulatory liabilities
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|||||
December 31, 2018
|
|
|
|
|
|
2018
|
|
|
|
|
|
||||||||
Regulatory assets
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Purchased power, natural gas and fuel used
|
|
|
$
|
(10
|
)
|
|
$
|
(1
|
)
|
Regulatory liabilities
|
|
$
|
5
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
2017
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
Purchased power, natural gas and fuel used
|
|
|
$
|
37
|
|
|
$
|
—
|
|
|
|
Years Ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
(Millions)
|
|
|
|
|
|
|
||||||
Derivative Assets
|
|
$
|
(3
|
)
|
|
$
|
(6
|
)
|
|
$
|
(8
|
)
|
Derivative Liabilities
|
|
$
|
8
|
|
|
$
|
1
|
|
|
$
|
(9
|
)
|
Year Ended December 31,
|
|
(Loss) Recognized in OCI on Derivatives (a)
|
|
Location of Loss Reclassified from Accumulated OCI into Income
|
|
Loss Reclassified from Accumulated OCI into Income
|
|
Total amount per Income Statement
|
||||||
(Millions)
|
|
|
|
|
|
|
|
|
||||||
2019
|
|
|
|
|
|
|
|
|
|
|
||||
Interest rate contracts
|
|
$
|
—
|
|
|
Interest expense
|
|
$
|
6
|
|
|
$
|
306
|
|
Commodity contracts
|
|
—
|
|
|
Purchased power, natural gas and fuel used
|
|
1
|
|
|
1,509
|
|
|||
Foreign currency exchange contracts
|
|
(1
|
)
|
|
|
|
—
|
|
|
|
||||
Total
|
|
$
|
(1
|
)
|
|
|
|
$
|
7
|
|
|
|
||
2018
|
|
|
|
|
|
|
|
|
||||||
Interest rate contracts
|
|
$
|
—
|
|
|
Interest expense
|
|
$
|
8
|
|
|
$
|
303
|
|
Commodity contracts
|
|
(1
|
)
|
|
Purchased power, natural gas and fuel used
|
|
—
|
|
|
1,653
|
|
|||
Total
|
|
$
|
(1
|
)
|
|
|
|
$
|
8
|
|
|
|
||
2017
|
|
|
|
|
|
|
|
|
||||||
Interest rate contracts
|
|
$
|
—
|
|
|
Interest expense
|
|
$
|
8
|
|
|
$
|
280
|
|
Commodity contracts
|
|
(1
|
)
|
|
Purchased power, natural gas and fuel used
|
|
1
|
|
|
1,338
|
|
|||
Total
|
|
$
|
(1
|
)
|
|
|
|
$
|
9
|
|
|
|
(a)
|
Changes in accumulated OCI are reported in pre-tax basis.
|
As of December 31,
|
|
2019
|
|
2018
|
||
(MWh/Dth in Millions)
|
|
|
|
|
|
|
Wholesale electricity purchase contracts
|
|
4
|
|
|
5
|
|
Wholesale electricity sales contracts
|
|
9
|
|
|
6
|
|
Natural gas and other fuel purchase contracts
|
|
29
|
|
|
29
|
|
Financial power contracts
|
|
10
|
|
|
11
|
|
Basis swaps - purchases
|
|
42
|
|
|
42
|
|
Basis swaps - sales
|
|
1
|
|
|
4
|
|
As of December 31,
|
|
2019
|
|
2018
|
||||
(Millions)
|
|
|
|
|
|
|
||
Wholesale electricity purchase contracts
|
|
$
|
10
|
|
|
$
|
11
|
|
Wholesale electricity sales contracts
|
|
4
|
|
|
(12
|
)
|
||
Natural gas and other fuel purchase contracts
|
|
(2
|
)
|
|
(2
|
)
|
||
Financial power contracts
|
|
73
|
|
|
55
|
|
||
Basis swaps - purchases
|
|
—
|
|
|
(6
|
)
|
||
Total
|
|
$
|
85
|
|
|
$
|
46
|
|
As of December 31, 2019
|
|
Current Assets
|
|
Noncurrent Assets
|
|
Current Liabilities
|
|
Noncurrent Liabilities
|
||||||||
(Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Not designated as hedging instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Derivative assets
|
|
$
|
23
|
|
|
$
|
110
|
|
|
$
|
42
|
|
|
$
|
13
|
|
Derivative liabilities
|
|
(1
|
)
|
|
(7
|
)
|
|
(48
|
)
|
|
(18
|
)
|
||||
|
|
22
|
|
|
103
|
|
|
(6
|
)
|
|
(5
|
)
|
||||
Designated as hedging instruments
|
|
|
|
|
|
|
|
|
||||||||
Derivative assets
|
|
—
|
|
|
18
|
|
|
5
|
|
|
4
|
|
||||
Derivative liabilities
|
|
—
|
|
|
(9
|
)
|
|
(13
|
)
|
|
(6
|
)
|
||||
|
|
—
|
|
|
9
|
|
|
(8
|
)
|
|
(2
|
)
|
||||
Total derivatives before offset of cash collateral
|
|
22
|
|
|
112
|
|
|
(14
|
)
|
|
(7
|
)
|
||||
Cash collateral (payable) receivable
|
|
(11
|
)
|
|
(30
|
)
|
|
7
|
|
|
6
|
|
||||
Total derivatives as presented in the balance sheet
|
|
$
|
11
|
|
|
$
|
82
|
|
|
$
|
(7
|
)
|
|
$
|
(1
|
)
|
As of December 31, 2018
|
|
Current Assets
|
|
Noncurrent Assets
|
|
Current Liabilities
|
|
Noncurrent Liabilities
|
||||||||
(Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Not designated as hedging instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Derivative assets
|
|
$
|
19
|
|
|
$
|
96
|
|
|
$
|
29
|
|
|
$
|
17
|
|
Derivative liabilities
|
|
(5
|
)
|
|
(3
|
)
|
|
(48
|
)
|
|
(35
|
)
|
||||
|
|
14
|
|
|
93
|
|
|
(19
|
)
|
|
(18
|
)
|
||||
Designated as hedging instruments
|
|
|
|
|
|
|
|
|
||||||||
Derivative assets
|
|
2
|
|
|
1
|
|
|
2
|
|
|
4
|
|
||||
Derivative liabilities
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
(10
|
)
|
||||
|
|
2
|
|
|
1
|
|
|
(5
|
)
|
|
(6
|
)
|
||||
Total derivatives before offset of cash collateral
|
|
16
|
|
|
94
|
|
|
(24
|
)
|
|
(24
|
)
|
||||
Cash collateral (payable) receivable
|
|
(8
|
)
|
|
(34
|
)
|
|
9
|
|
|
17
|
|
||||
Total derivatives as presented in the balance sheet
|
|
$
|
8
|
|
|
$
|
60
|
|
|
$
|
(15
|
)
|
|
$
|
(7
|
)
|
|
|
Year Ended December 31, 2019
|
||||||||||
|
|
Trading
|
|
Non-trading
|
|
Total amount per income statement
|
||||||
(Millions)
|
|
|
|
|
|
|
||||||
Operating Revenues
|
|
|
|
|
|
|
||||||
Wholesale electricity purchase contracts
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
|
||
Wholesale electricity sales contracts
|
|
3
|
|
|
40
|
|
|
|
||||
Financial power contracts
|
|
(3
|
)
|
|
23
|
|
|
|
||||
Financial and natural gas contracts
|
|
(1
|
)
|
|
1
|
|
|
|
||||
Total (loss) gain included in operating revenues
|
|
$
|
(2
|
)
|
|
$
|
64
|
|
|
$
|
1,338
|
|
|
|
|
|
|
|
|
||||||
Purchased power, natural gas and fuel used
|
|
|
|
|
|
|
||||||
Wholesale electricity purchase contracts
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
||
Wholesale electricity sales contracts
|
|
—
|
|
|
—
|
|
|
|
||||
Financial power contracts
|
|
—
|
|
|
(1
|
)
|
|
|
||||
Financial and natural gas contracts
|
|
—
|
|
|
15
|
|
|
|
||||
Total gain included in purchased power, natural gas and fuel used
|
|
$
|
—
|
|
|
$
|
14
|
|
|
$
|
1,509
|
|
|
|
|
|
|
|
|
||||||
Total (Loss) Gain
|
|
$
|
(2
|
)
|
|
$
|
78
|
|
|
|
Years Ended December 31,
|
|
2018
|
|
2017
|
||||||||||||
(Millions)
|
|
Trading
|
|
Non-trading
|
|
Trading
|
|
Non-trading
|
||||||||
Wholesale electricity purchase contracts
|
|
$
|
4
|
|
|
$
|
11
|
|
|
$
|
(3
|
)
|
|
$
|
1
|
|
Wholesale electricity sales contracts
|
|
(2
|
)
|
|
(15
|
)
|
|
4
|
|
|
(3
|
)
|
||||
Financial power contracts
|
|
—
|
|
|
(19
|
)
|
|
(1
|
)
|
|
(5
|
)
|
||||
Financial and natural gas contracts
|
|
4
|
|
|
—
|
|
|
(8
|
)
|
|
—
|
|
||||
Natural gas and other fuel purchase contracts
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
||||
Total Gain (Loss)
|
|
$
|
6
|
|
|
$
|
(23
|
)
|
|
$
|
(8
|
)
|
|
$
|
(15
|
)
|
Year Ended December 31,
|
|
(Loss) Gain Recognized in OCI on Derivatives (a)
|
|
Location of Gain Reclassified from Accumulated OCI into Income
|
|
Loss (Gain) Reclassified from Accumulated OCI into Income
|
|
Total amount per Income Statement
|
||||||
(Millions)
|
|
|
|
|
|
|
||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
||||
Commodity contracts
|
|
$
|
(5
|
)
|
|
Operating revenues
|
|
$
|
3
|
|
|
$
|
6,338
|
|
2018
|
|
|
|
|
|
|
|
|
||||||
Commodity contracts
|
|
$
|
(11
|
)
|
|
Operating revenues
|
|
$
|
(22
|
)
|
|
$
|
6,478
|
|
2017
|
|
|
|
|
|
|
|
|
||||||
Commodity contracts
|
|
$
|
41
|
|
|
Operating revenues
|
|
$
|
14
|
|
|
$
|
5,963
|
|
(a)
|
Changes in OCI are reported on a pre-tax basis.
|
As of December 31, 2019
|
|
Current Liabilities
|
||
(Millions)
|
|
|
||
Designated as hedging instruments
|
|
|
||
Derivative liabilities
|
|
$
|
—
|
|
|
|
|
||
As of December 31, 2018
|
|
|
||
(Millions)
|
|
|
||
Designated as hedging instruments
|
|
|
||
Derivative liabilities
|
|
$
|
(16
|
)
|
Years Ended December 31,
|
|
(Loss) Recognized in OCI on Derivatives (a)
|
|
Location of Loss Reclassified from Accumulated OCI into Income
|
|
Loss Reclassified from Accumulated OCI into Income
|
|
Total amount per Income Statement
|
||||||
(Millions)
|
|
|
|
|
|
|
|
|
||||||
2019
|
|
|
|
|
|
|
|
|
||||||
Interest rate contracts
|
|
$
|
(24
|
)
|
|
Interest expense
|
|
$
|
2
|
|
|
$
|
306
|
|
2018
|
|
|
|
|
|
|
|
|
||||||
Interest rate contracts
|
|
$
|
(16
|
)
|
|
Interest expense
|
|
$
|
—
|
|
|
$
|
303
|
|
For the Year Ended December 31,
|
|
2019
|
||
(Millions)
|
|
|
||
Lease cost
|
|
|
||
Finance lease cost
|
|
|
||
Amortization of right-of-use assets
|
|
$
|
12
|
|
Interest on lease liabilities
|
|
3
|
|
|
Total finance lease cost
|
|
15
|
|
|
Operating lease cost
|
|
18
|
|
|
Short-term lease cost
|
|
5
|
|
|
Variable lease cost
|
|
2
|
|
|
Total lease cost
|
|
$
|
40
|
|
As of December 31,
|
|
2019
|
||
(Millions, except lease term and discount rate)
|
|
|
||
Operating Leases
|
|
|
||
Operating lease right-of-use assets
|
|
$
|
70
|
|
|
|
|
||
Operating lease liabilities, current
|
|
12
|
|
|
Operating lease liabilities, long-term
|
|
65
|
|
|
Total operating lease liabilities
|
|
$
|
77
|
|
|
|
|
||
Finance Leases
|
|
|
||
Other assets
|
|
$
|
133
|
|
|
|
|
||
Other current liabilities
|
|
9
|
|
|
Other non-current liabilities
|
|
54
|
|
|
Total finance lease liabilities
|
|
$
|
63
|
|
|
|
|
||
Weighted-average Remaining Lease Term (years)
|
|
|
||
Finance leases
|
|
7.59
|
|
|
Operating leases
|
|
12.98
|
|
|
Weighted-average Discount Rate
|
|
|
||
Finance leases
|
|
5.35
|
%
|
|
Operating leases
|
|
3.62
|
%
|
For the Year Ended December 31,
|
|
2019
|
||
(Millions)
|
|
|
||
Cash paid for amounts included in the measurement of lease liabilities:
|
|
|
||
Operating cash flows from operating leases
|
|
$
|
13
|
|
Operating cash flows from finance leases
|
|
$
|
3
|
|
Financing cash flows from finance leases
|
|
$
|
27
|
|
|
|
|
||
Right-of-use assets obtained in exchange for lease obligations:
|
|
|
||
Finance leases
|
|
$
|
1
|
|
Operating leases
|
|
$
|
3
|
|
|
|
Finance Leases
|
|
Operating Leases
|
||||
(Millions)
|
|
|
|
|
||||
Year ending December 31,
|
|
|
|
|
||||
2020
|
|
$
|
10
|
|
|
$
|
14
|
|
2021
|
|
7
|
|
|
13
|
|
||
2022
|
|
3
|
|
|
10
|
|
||
2023
|
|
50
|
|
|
7
|
|
||
2024
|
|
—
|
|
|
6
|
|
||
Thereafter
|
|
2
|
|
|
51
|
|
||
Total lease payments
|
|
72
|
|
|
101
|
|
||
Less: imputed interest
|
|
(9
|
)
|
|
(24
|
)
|
||
Total
|
|
$
|
63
|
|
|
$
|
77
|
|
Year
|
|
Operating Leases
|
|
Capital Leases
|
|
Total
|
||||||
|
|
(Millions)
|
||||||||||
2019
|
|
$
|
31
|
|
|
$
|
30
|
|
|
$
|
61
|
|
2020
|
|
39
|
|
|
10
|
|
|
49
|
|
|||
2021
|
|
38
|
|
|
7
|
|
|
45
|
|
|||
2022
|
|
35
|
|
|
2
|
|
|
37
|
|
|||
2023
|
|
33
|
|
|
50
|
|
|
83
|
|
|||
Thereafter
|
|
735
|
|
|
2
|
|
|
737
|
|
|||
Total
|
|
$
|
911
|
|
|
$
|
101
|
|
|
$
|
1,012
|
|
Year
|
|
Purchases
|
|
Sales
|
||||
|
|
(Millions)
|
||||||
2020
|
|
$
|
1,396
|
|
|
$
|
192
|
|
2021
|
|
177
|
|
|
138
|
|
||
2022
|
|
87
|
|
|
72
|
|
||
2023
|
|
68
|
|
|
52
|
|
||
2024
|
|
44
|
|
|
39
|
|
||
Thereafter
|
|
830
|
|
|
87
|
|
||
Totals
|
|
$
|
2,602
|
|
|
$
|
580
|
|
Years Ended December 31,
|
|
2019
|
|
2018
|
|
2017
|
||||||
(Millions)
|
|
|
|
|
|
|
||||||
Current
|
|
|
|
|
|
|
|
|
|
|||
Federal
|
|
$
|
11
|
|
|
$
|
17
|
|
|
$
|
(20
|
)
|
State
|
|
(6
|
)
|
|
2
|
|
|
12
|
|
|||
Current taxes charged to expense (benefit)
|
|
5
|
|
|
19
|
|
|
(8
|
)
|
|||
Deferred
|
|
|
|
|
|
|
||||||
Federal
|
|
152
|
|
|
233
|
|
|
(124
|
)
|
|||
State
|
|
44
|
|
|
(12
|
)
|
|
(73
|
)
|
|||
Deferred taxes charged to expense (benefit)
|
|
196
|
|
|
221
|
|
|
(197
|
)
|
|||
Production tax credits
|
|
(57
|
)
|
|
(68
|
)
|
|
(53
|
)
|
|||
Investment tax credits
|
|
(1
|
)
|
|
(2
|
)
|
|
(1
|
)
|
|||
Total Income Tax Expense (Benefit)
|
|
$
|
143
|
|
|
$
|
170
|
|
|
$
|
(259
|
)
|
Years Ended December 31,
|
|
2019
|
|
2018
|
|
2017
|
||||||
(Millions)
|
|
|
|
|
|
|
||||||
Tax expense at federal statutory rate
|
|
$
|
172
|
|
|
$
|
161
|
|
|
$
|
43
|
|
Depreciation and amortization not normalized
|
|
(23
|
)
|
|
(5
|
)
|
|
9
|
|
|||
Investment tax credit amortization
|
|
(1
|
)
|
|
(2
|
)
|
|
(1
|
)
|
|||
Tax return related adjustments
|
|
(2
|
)
|
|
(6
|
)
|
|
7
|
|
|||
Production tax credits
|
|
(57
|
)
|
|
(68
|
)
|
|
(53
|
)
|
|||
Tax equity financing arrangements
|
|
8
|
|
|
—
|
|
|
(10
|
)
|
|||
Federal tax rate impact on held for sale classification
|
|
—
|
|
|
21
|
|
|
82
|
|
|||
State tax expense (benefit), net of federal benefit
|
|
30
|
|
|
(8
|
)
|
|
(40
|
)
|
|||
Tax Act - remeasurement
|
|
—
|
|
|
46
|
|
|
(328
|
)
|
|||
Other, net
|
|
16
|
|
|
31
|
|
|
32
|
|
|||
Total Income Tax Expense (Benefit)
|
|
$
|
143
|
|
|
$
|
170
|
|
|
$
|
(259
|
)
|
As of December 31,
|
|
2019
|
|
2018
|
||||
(Millions)
|
|
|
|
|
||||
Deferred Income Tax Liabilities (Assets)
|
|
|
|
|
|
|||
Property related
|
|
$
|
4,007
|
|
|
$
|
3,787
|
|
Unfunded future income taxes
|
|
101
|
|
|
107
|
|
||
Federal and state tax credits
|
|
(632
|
)
|
|
(691
|
)
|
||
Federal and state NOL’s
|
|
(989
|
)
|
|
(993
|
)
|
||
Joint ventures/partnerships
|
|
136
|
|
|
132
|
|
||
Nontaxable grant revenue
|
|
(335
|
)
|
|
(354
|
)
|
||
Pension and other post-retirement benefits
|
|
43
|
|
|
8
|
|
||
Tax Act - tax on regulatory remeasurement
|
|
(409
|
)
|
|
(393
|
)
|
||
Valuation allowance
|
|
33
|
|
|
23
|
|
||
Other
|
|
(141
|
)
|
|
(102
|
)
|
||
Deferred Income Tax Liabilities
|
|
1,814
|
|
|
1,524
|
|
||
Classified as regulatory assets
|
|
—
|
|
|
(6
|
)
|
||
Total Deferred Income Tax Liabilities
|
|
$
|
1,814
|
|
|
$
|
1,530
|
|
|
|
|
|
|
||||
Deferred tax assets
|
|
$
|
2,506
|
|
|
$
|
2,533
|
|
Deferred tax liabilities
|
|
4,320
|
|
|
4,057
|
|
||
Net Accumulated Deferred Income Tax Liabilities
|
|
$
|
1,814
|
|
|
$
|
1,524
|
|
Years ended December 31,
|
|
2019
|
|
2018
|
|
2017
|
||||||
(Millions)
|
|
|
|
|
|
|
||||||
Beginning Balance
|
|
$
|
153
|
|
|
$
|
45
|
|
|
$
|
40
|
|
Increases for tax positions related to prior years
|
|
14
|
|
|
111
|
|
|
23
|
|
|||
Increases for tax positions related to current year
|
|
16
|
|
|
—
|
|
|
—
|
|
|||
Decreases for tax positions related to prior years
|
|
(18
|
)
|
|
(3
|
)
|
|
(16
|
)
|
|||
Reduction for tax position related to settlements with taxing authorities
|
|
(17
|
)
|
|
—
|
|
|
(2
|
)
|
|||
Ending Balance
|
|
$
|
148
|
|
|
$
|
153
|
|
|
$
|
45
|
|
|
|
Pension Benefits
|
|
Postretirement Benefits
|
||||||||||||
As of December 31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
(Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Change in benefit obligation
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Benefit obligation as of January 1,
|
|
$
|
3,374
|
|
|
$
|
3,593
|
|
|
$
|
425
|
|
|
$
|
491
|
|
Service cost
|
|
41
|
|
|
44
|
|
|
3
|
|
|
4
|
|
||||
Interest cost
|
|
130
|
|
|
128
|
|
|
16
|
|
|
19
|
|
||||
Plan participants’ contributions
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
||||
Plan Amendments
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
||||
Actuarial loss (gain)
|
|
347
|
|
|
(159
|
)
|
|
26
|
|
|
(55
|
)
|
||||
Benefits paid
|
|
(221
|
)
|
|
(237
|
)
|
|
(31
|
)
|
|
(41
|
)
|
||||
Reclassified from held for sale
|
|
—
|
|
|
5
|
|
|
—
|
|
|
1
|
|
||||
Benefit Obligation as of December 31,
|
|
3,669
|
|
|
3,374
|
|
|
439
|
|
|
425
|
|
||||
Change in plan assets
|
|
|
|
|
|
|
|
|
||||||||
Fair value of plan assets as of January 1,
|
|
2,544
|
|
|
2,865
|
|
|
148
|
|
|
165
|
|
||||
Actual return (loss) on plan assets
|
|
460
|
|
|
(135
|
)
|
|
22
|
|
|
(5
|
)
|
||||
Employer contributions
|
|
65
|
|
|
48
|
|
|
16
|
|
|
20
|
|
||||
Plan participants’ contributions
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
||||
Benefits paid
|
|
(221
|
)
|
|
(237
|
)
|
|
(31
|
)
|
|
(41
|
)
|
||||
Reclassified from held for sale
|
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
||||
Fair Value of Plan Assets as of December 31,
|
|
2,848
|
|
|
2,544
|
|
|
155
|
|
|
148
|
|
||||
Funded Status as of December 31,
|
|
$
|
(821
|
)
|
|
$
|
(830
|
)
|
|
$
|
(284
|
)
|
|
$
|
(277
|
)
|
|
|
Pension Benefits
|
|
Postretirement Benefits
|
||||||||||||
As of December 31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
(Millions)
|
|
|
|
|
|
|
|
|
||||||||
Current liabilities
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(5
|
)
|
|
$
|
(5
|
)
|
Non-current liabilities
|
|
(821
|
)
|
|
(830
|
)
|
|
(279
|
)
|
|
(272
|
)
|
||||
Total
|
|
$
|
(821
|
)
|
|
$
|
(830
|
)
|
|
$
|
(284
|
)
|
|
$
|
(277
|
)
|
|
|
Pension Benefits
|
|
Postretirement Benefits
|
||||||||||||||||||||
Years Ended December 31,
|
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
||||||||||||
(Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net loss (gain)
|
|
$
|
23
|
|
|
$
|
24
|
|
|
$
|
25
|
|
|
$
|
(8
|
)
|
|
$
|
(7
|
)
|
|
$
|
(4
|
)
|
|
|
Pension Benefits
|
|
Postretirement Benefits
|
||||||||||||||||||||
Years Ended December 31,
|
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
||||||||||||
(Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net loss (gain)
|
|
$
|
706
|
|
|
$
|
762
|
|
|
$
|
737
|
|
|
$
|
13
|
|
|
$
|
(8
|
)
|
|
$
|
35
|
|
Prior service cost (credit)
|
|
$
|
4
|
|
|
$
|
4
|
|
|
$
|
6
|
|
|
$
|
(21
|
)
|
|
$
|
(25
|
)
|
|
$
|
(31
|
)
|
|
|
PBO in excess of plan assets
|
||||||
As of December 31,
|
|
2019
|
|
2018
|
||||
(Millions)
|
|
|
|
|
||||
Projected benefit obligation
|
|
$
|
3,669
|
|
|
$
|
3,374
|
|
Fair value of plan assets
|
|
$
|
2,848
|
|
|
$
|
2,544
|
|
|
|
|
|
|
||||
|
|
ABO in excess of plan assets
|
||||||
As of December 31,
|
|
2019
|
|
2018
|
||||
(Millions)
|
|
|
|
|
||||
Accumulated benefit obligation
|
|
$
|
3,451
|
|
|
$
|
3,174
|
|
Fair value of plan assets
|
|
$
|
2,848
|
|
|
$
|
2,544
|
|
(Millions)
|
|
Pension Benefits
|
|
Postretirement Benefits
|
||||||||||||||||||||
For the years ended December 31,
|
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
||||||||||||
Net Periodic Benefit Cost:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Service cost
|
|
$
|
41
|
|
|
$
|
44
|
|
|
$
|
42
|
|
|
$
|
3
|
|
|
$
|
4
|
|
|
$
|
5
|
|
Interest cost
|
|
128
|
|
|
126
|
|
|
137
|
|
|
16
|
|
|
18
|
|
|
21
|
|
||||||
Expected return on plan assets
|
|
(190
|
)
|
|
(199
|
)
|
|
(195
|
)
|
|
(7
|
)
|
|
(8
|
)
|
|
(8
|
)
|
||||||
Amortization of prior service (benefit) cost
|
|
(1
|
)
|
|
1
|
|
|
2
|
|
|
(10
|
)
|
|
(9
|
)
|
|
(9
|
)
|
||||||
Amortization of net loss
|
|
113
|
|
|
149
|
|
|
126
|
|
|
1
|
|
|
6
|
|
|
5
|
|
||||||
Net Periodic Benefit Cost
|
|
91
|
|
|
121
|
|
|
112
|
|
|
3
|
|
|
11
|
|
|
14
|
|
||||||
Other changes in plan assets and benefit obligations recognized in regulatory assets and regulatory liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net loss (gain)
|
|
80
|
|
|
175
|
|
|
3
|
|
|
13
|
|
|
(37
|
)
|
|
(5
|
)
|
||||||
Amortization of net loss
|
|
(113
|
)
|
|
(149
|
)
|
|
(126
|
)
|
|
(1
|
)
|
|
(6
|
)
|
|
(5
|
)
|
||||||
Current year prior service cost
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
||||||
Amortization of prior service benefit (cost)
|
|
1
|
|
|
(1
|
)
|
|
(2
|
)
|
|
10
|
|
|
9
|
|
|
9
|
|
||||||
Total Other Changes
|
|
(34
|
)
|
|
25
|
|
|
(125
|
)
|
|
22
|
|
|
(37
|
)
|
|
(1
|
)
|
||||||
Total Recognized
|
|
$
|
57
|
|
|
$
|
146
|
|
|
$
|
(13
|
)
|
|
$
|
25
|
|
|
$
|
(26
|
)
|
|
$
|
13
|
|
(Millions)
|
|
Pension Benefits
|
|
Postretirement Benefits
|
||||||||||||||||||||
For the years ended December 31,
|
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
||||||||||||
Net Periodic Benefit Cost:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Service cost
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest cost
|
|
2
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||||
Expected return on plan assets
|
|
(2
|
)
|
|
(2
|
)
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Amortization of net loss (gain)
|
|
1
|
|
|
1
|
|
|
1
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
||||||
Settlement charge
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net Periodic Benefit Cost
|
|
2
|
|
|
2
|
|
|
1
|
|
|
(1
|
)
|
|
1
|
|
|
1
|
|
||||||
Other Changes in plan assets and benefit obligations recognized in OCI:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net loss (gain)
|
|
—
|
|
|
1
|
|
|
2
|
|
|
—
|
|
|
(3
|
)
|
|
(1
|
)
|
||||||
Amortization of net (loss) gain
|
|
(1
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
1
|
|
|
—
|
|
|
—
|
|
||||||
Amortization of prior service cost
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
||||||
Total Other Changes
|
|
(1
|
)
|
|
—
|
|
|
1
|
|
|
(1
|
)
|
|
(3
|
)
|
|
(1
|
)
|
||||||
Total Recognized
|
|
$
|
1
|
|
|
$
|
2
|
|
|
$
|
2
|
|
|
$
|
(2
|
)
|
|
$
|
(2
|
)
|
|
$
|
—
|
|
|
|
Pension Benefits
|
|
Postretirement Benefits
|
||||
(Millions)
|
|
|
|
|
||||
Estimated net loss
|
|
$
|
123
|
|
|
$
|
2
|
|
Estimated prior service cost (benefit)
|
|
$
|
1
|
|
|
$
|
(9
|
)
|
|
|
Pension Benefits
|
|
Postretirement Benefits
|
||||
(Millions)
|
|
|
|
|
||||
Estimated net loss (gain)
|
|
$
|
2
|
|
|
$
|
(1
|
)
|
|
|
Pension Benefits
|
|
Postretirement Benefits
|
||||||||
As of December 31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
Discount rate - Networks
|
|
2.93% / 3.19%
|
|
|
3.93% / 4.09%
|
|
|
2.93% / 3.19%
|
|
|
3.93% / 4.09%
|
|
Discount rate - ARHI
|
|
3.10
|
%
|
|
4.09
|
%
|
|
3.10
|
%
|
|
4.09
|
%
|
Rate of compensation increase - Networks
|
|
3.00% - 6.50%
|
|
|
3.50% - 4.20%
|
|
|
—
|
|
|
—
|
|
|
|
Pension Benefits
|
|
Postretirement Benefits
|
||||||||||||||
Years Ended December 31,
|
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
||||||
Discount rate - Networks
|
|
3.93% / 4.09%
|
|
|
3.63% / 3.80%
|
|
|
4.12% / 4.24%
|
|
|
3.93% / 4.09%
|
|
|
3.63% / 3.80%
|
|
|
4.12% / 4.24%
|
|
Discount rate - ARHI
|
|
4.09
|
%
|
|
3.80
|
%
|
|
3.81
|
%
|
|
4.09
|
%
|
|
3.80
|
%
|
|
3.81
|
%
|
Expected long-term return on plan assets - Networks
|
|
7.00% / 7.40%
|
|
|
7.00% / 7.40%
|
|
|
7.00% / 7.50%
|
|
|
4.90% - 7.00%
|
|
|
6.13
|
%
|
|
6.13
|
%
|
Expected long-term return on plan assets - ARHI
|
|
5.50
|
%
|
|
5.50
|
%
|
|
5.50
|
%
|
|
5.50
|
%
|
|
5.50
|
%
|
|
5.50
|
%
|
Expected long-term return on plan assets - nontaxable trust - Networks
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6.40
|
%
|
|
6.40
|
%
|
|
6.50
|
%
|
Expected long-term return on plan assets - taxable trust - Networks
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4.20
|
%
|
|
4.20
|
%
|
|
4.25
|
%
|
Rate of compensation increase - Networks
|
|
3.50%-4.20%
|
|
|
3.50% - 4.20%
|
|
|
3.50% - 4.20%
|
|
|
—
|
|
|
—
|
|
|
—
|
|
As of December 31,
|
|
2019
|
|
2018
|
||
Health care cost trend rate assumed for next year - Networks
|
|
7.00%/7.75%
|
|
|
7.50%/8.50%
|
|
Health care cost trend rate assumed for next year - ARHI
|
|
6.75% / 7.50%
|
|
|
7.00%/7.75%
|
|
Rate to which cost trend rate is assumed to decline (ultimate trend rate) - Networks
|
|
4.50
|
%
|
|
4.50
|
%
|
Rate to which cost trend rate is assumed to decline (ultimate trend rate) - ARHI
|
|
4.50
|
%
|
|
4.50
|
%
|
Year that the rate reaches the ultimate trend rate - Networks
|
|
2029 / 2027
|
|
|
2030 / 2028
|
|
Year that the rate reaches the ultimate trend rate - ARHI
|
|
2029 / 2027
|
|
|
2029 / 2027
|
|
|
|
1% Increase
|
|
1% Decrease
|
||||
(Millions)
|
|
|
|
|
||||
Effect on total of service and interest cost
|
|
$
|
1
|
|
|
$
|
—
|
|
Effect on postretirement benefit obligation
|
|
$
|
12
|
|
|
$
|
(11
|
)
|
(Millions)
|
|
Pension Benefits
|
|
Postretirement Benefits
|
|
Medicare Act Subsidy Receipts
|
||||||
2020
|
|
$
|
209
|
|
|
$
|
32
|
|
|
$
|
1
|
|
2021
|
|
$
|
210
|
|
|
$
|
32
|
|
|
$
|
1
|
|
2022
|
|
$
|
216
|
|
|
$
|
31
|
|
|
$
|
—
|
|
2023
|
|
$
|
217
|
|
|
$
|
30
|
|
|
$
|
—
|
|
2024
|
|
$
|
219
|
|
|
$
|
29
|
|
|
$
|
—
|
|
2025 - 2028
|
|
$
|
1,097
|
|
|
$
|
134
|
|
|
$
|
2
|
|
As of December 31, 2019
|
|
|
|
Fair Value Measurements
|
||||||||||||
(Millions)
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Asset Category
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
42
|
|
|
$
|
—
|
|
|
$
|
42
|
|
|
$
|
—
|
|
U.S. government securities
|
|
87
|
|
|
87
|
|
|
—
|
|
|
—
|
|
||||
Registered investment companies
|
|
464
|
|
|
464
|
|
|
—
|
|
|
—
|
|
||||
Corporate bonds
|
|
458
|
|
|
—
|
|
|
458
|
|
|
—
|
|
||||
Preferred stocks
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||||
Common collective trusts
|
|
572
|
|
|
—
|
|
|
572
|
|
|
—
|
|
||||
Other, principally annuity, fixed income
|
|
84
|
|
|
—
|
|
|
84
|
|
|
—
|
|
||||
|
|
$
|
1,708
|
|
|
$
|
552
|
|
|
$
|
1,156
|
|
|
$
|
—
|
|
Other investments measured at net asset value
|
|
1,140
|
|
|
|
|
|
|
|
|||||||
Total
|
|
$
|
2,848
|
|
|
|
|
|
|
|
As of December 31, 2018
|
|
|
|
Fair Value Measurements
|
||||||||||||
(Millions)
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Asset Category
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
52
|
|
|
$
|
—
|
|
|
$
|
52
|
|
|
$
|
—
|
|
U.S. government securities
|
|
15
|
|
|
15
|
|
|
—
|
|
|
—
|
|
||||
Registered investment companies
|
|
424
|
|
|
421
|
|
|
3
|
|
|
—
|
|
||||
Corporate bonds
|
|
413
|
|
|
—
|
|
|
413
|
|
|
—
|
|
||||
Preferred stocks
|
|
3
|
|
|
—
|
|
|
3
|
|
|
—
|
|
||||
Common collective trusts
|
|
634
|
|
|
—
|
|
|
634
|
|
|
—
|
|
||||
Other, principally annuity, fixed income
|
|
71
|
|
|
—
|
|
|
71
|
|
|
—
|
|
||||
|
|
$
|
1,612
|
|
|
$
|
436
|
|
|
$
|
1,176
|
|
|
$
|
—
|
|
Other investments measured at net asset value
|
|
932
|
|
|
|
|
|
|
|
|||||||
Total
|
|
$
|
2,544
|
|
|
|
|
|
|
|
(a)
|
Certain amounts have been reclassified within this table to conform to the 2019 presentation.
|
•
|
Cash and cash equivalents – Level 1: at cost, plus accrued interest, which approximates fair value. Level 2: proprietary cash associated with other investments, based on yields currently available on comparable securities of issuers with similar credit ratings.
|
•
|
U.S. government securities – at the closing price reported in the active market in which the security is traded.
|
•
|
Corporate bonds – based on yields currently available on comparable securities of issuers with similar credit ratings.
|
•
|
Preferred stocks – at the closing price reported in the active market in which the individual investment is traded.
|
•
|
Common collective trusts/Registered investment companies – Level 1: at the closing price reported in the active market in which the individual investment is traded. Level 2 - the fair value is primarily derived from the quoted prices in active markets of the underlying securities. Because the fund shares are offered to a limited group of investors, they are not considered to be traded in an active market.
|
•
|
Other investments, principally annuity and fixed income – based on yields currently available on comparable securities of issuers with similar credit ratings.
|
•
|
Other investments measured at net asset value (NAV) – fund shares offered to a limited group of investors and alternative investments, such as private equity and real estate oriented investments, partnership/joint ventures and hedge funds are valued using the NAV as a practical expedient.
|
As of December 31, 2019
|
|
|
|
Fair Value Measurements
|
||||||||||||
(Millions)
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Asset Category
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
31
|
|
|
$
|
—
|
|
|
$
|
31
|
|
|
$
|
—
|
|
Common stocks
|
|
16
|
|
|
16
|
|
|
—
|
|
|
—
|
|
||||
Registered investment companies
|
|
98
|
|
|
98
|
|
|
—
|
|
|
—
|
|
||||
Corporate bonds
|
|
2
|
|
|
—
|
|
|
2
|
|
|
—
|
|
||||
Other, principally annuity, fixed income
|
|
8
|
|
|
—
|
|
|
8
|
|
|
—
|
|
||||
Total
|
|
$
|
155
|
|
|
$
|
114
|
|
|
$
|
41
|
|
|
$
|
—
|
|
As of December 31, 2018
|
|
|
|
Fair Value Measurements
|
||||||||||||
(Millions)
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Asset Category
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
9
|
|
|
$
|
5
|
|
|
$
|
4
|
|
|
$
|
—
|
|
Common stocks
|
|
15
|
|
|
15
|
|
|
—
|
|
|
—
|
|
||||
Registered investment companies
|
|
115
|
|
|
115
|
|
|
—
|
|
|
—
|
|
||||
Corporate bonds
|
|
2
|
|
|
—
|
|
|
2
|
|
|
—
|
|
||||
Other, principally annuity, fixed income
|
|
7
|
|
|
—
|
|
|
7
|
|
|
—
|
|
||||
Total
|
|
$
|
148
|
|
|
$
|
135
|
|
|
$
|
13
|
|
|
$
|
—
|
|
(a)
|
Certain amounts have been reclassified within this table to conform to the 2019 presentation.
|
•
|
Cash and cash equivalents – Level 1: at cost, plus accrued interest, which approximates fair value. Level 2: proprietary cash associated with other investments, based on yields currently available on comparable securities of issuers with similar credit ratings.
|
•
|
Common stocks and registered investment companies – at the closing price reported in the active market in which the individual investment is traded.
|
•
|
Corporate bonds – based on yields currently available on comparable securities of issuers with similar credit ratings.
|
•
|
Other investments, principally annuity and fixed income – based on yields currently available on comparable securities of issuers with similar credit ratings.
|
Accumulated Other Comprehensive Income (Loss)
|
|
As of December 31, 2016
|
|
2017 Change
|
|
As of December 31, 2017
|
|
Adoption of new accounting standard
|
|
2018 Change
|
|
As of December 31, 2018
|
|
Adoption of new accounting standard
|
|
2019 Change
|
|
As of December 31, 2019
|
||||||||||||||||||
(Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Change in revaluation of defined benefit plans, net of income tax expense (benefit) of $1.1 for 2018 and $(0.3) for 2019
|
|
$
|
(14
|
)
|
|
$
|
—
|
|
|
$
|
(14
|
)
|
|
$
|
—
|
|
|
$
|
3
|
|
|
$
|
(11
|
)
|
|
$
|
(2
|
)
|
|
$
|
1
|
|
|
$
|
(12
|
)
|
Loss (gain) for nonqualified pension plans, net of income tax expense (benefit) of $0.2 for 2017, $0.3 for 2018 and $(1.0) for 2019
|
|
(7
|
)
|
|
1
|
|
|
(6
|
)
|
|
(1
|
)
|
|
1
|
|
|
(6
|
)
|
|
—
|
|
|
(1
|
)
|
|
(7
|
)
|
|||||||||
Unrealized (loss) gain on derivatives qualifying as cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Unrealized gain (loss) during period on derivatives qualifying as cash flow hedges, net of income tax expense (benefit) of $15.2 for 2017, $(6.6) for 2018 and $(8.6) for 2019
|
|
5
|
|
|
25
|
|
|
30
|
|
|
—
|
|
|
(21
|
)
|
|
9
|
|
|
—
|
|
|
(22
|
)
|
|
(13
|
)
|
|||||||||
Reclassification to net income of losses (gains) on cash flow hedges, net of income tax expense (benefit) of $9.3 for 2017, $(6.5) for 2018 and $2.7 for 2019 (a)
|
|
(70
|
)
|
|
14
|
|
|
(56
|
)
|
|
—
|
|
|
(8
|
)
|
|
(64
|
)
|
|
(10
|
)
|
|
11
|
|
|
(63
|
)
|
|||||||||
Gain (loss) on derivatives qualifying as cash flow hedges
|
|
(65
|
)
|
|
39
|
|
|
(26
|
)
|
|
—
|
|
|
(29
|
)
|
|
(55
|
)
|
|
(10
|
)
|
|
(11
|
)
|
|
(76
|
)
|
|||||||||
Accumulated Other Comprehensive (Loss) Income
|
|
$
|
(86
|
)
|
|
$
|
40
|
|
|
$
|
(46
|
)
|
|
$
|
(1
|
)
|
|
$
|
(25
|
)
|
|
$
|
(72
|
)
|
|
$
|
(12
|
)
|
|
$
|
(11
|
)
|
|
$
|
(95
|
)
|
(a)
|
Reclassification is reflected in the operating expenses line item in the consolidated statements of income.
|
Years Ended December 31,
|
|
2019
|
|
2018
|
|
2017
|
||||||
(Millions, except for number of shares and per share data)
|
|
|
|
|
|
|
||||||
Numerator:
|
|
|
|
|
|
|
|
|
|
|||
Net income attributable to AVANGRID
|
|
$
|
700
|
|
|
$
|
595
|
|
|
$
|
381
|
|
Denominator:
|
|
|
|
|
|
|
||||||
Weighted average number of shares outstanding - basic
|
|
309,491,082
|
|
|
309,503,319
|
|
|
309,502,861
|
|
|||
Weighted average number of shares outstanding - diluted
|
|
309,514,910
|
|
|
309,712,628
|
|
|
309,661,883
|
|
|||
Earnings per share attributable to AVANGRID
|
|
|
|
|
|
|
||||||
Earnings Per Common Share, Basic
|
|
$
|
2.26
|
|
|
$
|
1.92
|
|
|
$
|
1.23
|
|
Earnings Per Common Share, Diluted
|
|
$
|
2.26
|
|
|
$
|
1.92
|
|
|
$
|
1.23
|
|
(Millions)
|
|
Government grants
|
|
Other deferred income
|
|
Total
|
||||||
As of December 31, 2017
|
|
$
|
1,427
|
|
|
$
|
19
|
|
|
$
|
1,446
|
|
Additions
|
|
9
|
|
|
—
|
|
|
9
|
|
|||
Recognized in income
|
|
(69
|
)
|
|
(1
|
)
|
|
(70
|
)
|
|||
As of December 31, 2018
|
|
1,367
|
|
|
18
|
|
|
1,385
|
|
|||
Disposals
|
|
(3
|
)
|
|
—
|
|
|
(3
|
)
|
|||
Derecognition due to sale (a)
|
|
(38
|
)
|
|
—
|
|
|
(38
|
)
|
|||
Recognized in income
|
|
(68
|
)
|
|
(2
|
)
|
|
(70
|
)
|
|||
As of December 31, 2019
|
|
$
|
1,258
|
|
|
$
|
16
|
|
|
$
|
1,274
|
|
(a)
|
Grants no longer controlled by us due to the 2019 sale of a 50% interest in the Poseidon projects. See Note 22 for further information.
|
Years ended December 31,
|
|
2019
|
|
2018
|
|
2017
|
||||||
(Millions)
|
|
|
|
|
|
|
||||||
Gain on sale of assets (a)
|
|
$
|
148
|
|
|
$
|
10
|
|
|
$
|
—
|
|
Allowance for funds used during construction
|
|
46
|
|
|
30
|
|
|
36
|
|
|||
Carrying costs on regulatory assets
|
|
21
|
|
|
21
|
|
|
11
|
|
|||
Non-service component of net periodic benefit cost
|
|
(79
|
)
|
|
(128
|
)
|
|
(120
|
)
|
|||
Other
|
|
(17
|
)
|
|
1
|
|
|
11
|
|
|||
Total Other Income (Expense)
|
|
$
|
119
|
|
|
$
|
(66
|
)
|
|
$
|
(62
|
)
|
As of December 31,
|
|
2019
|
|
2018
|
||||
(Millions)
|
|
|
|
|
||||
Trade receivables
|
|
$
|
1,151
|
|
|
$
|
1,204
|
|
Allowance for bad debts
|
|
(69
|
)
|
|
(62
|
)
|
||
Total Accounts Receivable
|
|
$
|
1,082
|
|
|
$
|
1,142
|
|
As of December 31,
|
|
2019
|
|
2018
|
||||
(Millions)
|
|
|
|
|
||||
Prepaid other taxes
|
|
$
|
123
|
|
|
$
|
137
|
|
Broker margin and collateral accounts
|
|
33
|
|
|
37
|
|
||
Other pledged deposits
|
|
3
|
|
|
6
|
|
||
Prepaid expenses
|
|
34
|
|
|
43
|
|
||
Other
|
|
6
|
|
|
6
|
|
||
Total
|
|
$
|
199
|
|
|
$
|
229
|
|
As of December 31,
|
|
2019
|
|
2018
|
||||
(Millions)
|
|
|
|
|
||||
Advances received
|
|
$
|
140
|
|
|
$
|
129
|
|
Accrued salaries
|
|
89
|
|
|
81
|
|
||
Short-term environmental provisions
|
|
40
|
|
|
60
|
|
||
Collateral deposits received
|
|
44
|
|
|
42
|
|
||
Pension and other postretirement
|
|
5
|
|
|
5
|
|
||
Finance leases
|
|
9
|
|
|
—
|
|
||
Other
|
|
7
|
|
|
10
|
|
||
Total
|
|
$
|
334
|
|
|
$
|
327
|
|
•
|
Networks: includes all of the energy transmission and distribution activities, any other regulated activity originating in New York and Maine and regulated electric distribution, electric transmission and gas distribution activities originating in Connecticut and Massachusetts. The Networks reportable segment includes eight rate regulated operating segments. These operating segments generally offer the same services distributed in similar fashions, have the same types of customers, have similar long-term economic characteristics and are subject to similar regulatory requirements, allowing these operations to be aggregated into one reportable segment.
|
•
|
Renewables: activities relating to renewable energy, mainly wind energy generation and trading related with such activities.
|
For the year ended December 31, 2019
(Millions) |
|
Networks
|
|
Renewables
|
|
Other(a)
|
|
AVANGRID Consolidated
|
||||||||
Revenue - external
|
|
$
|
5,150
|
|
|
$
|
1,186
|
|
|
$
|
2
|
|
|
$
|
6,338
|
|
Revenue - intersegment
|
|
14
|
|
|
—
|
|
|
(14
|
)
|
|
—
|
|
||||
Depreciation and amortization
|
|
550
|
|
|
383
|
|
|
1
|
|
|
934
|
|
||||
Operating income
|
|
893
|
|
|
95
|
|
|
15
|
|
|
1,003
|
|
||||
Earnings (losses) from equity method investments
|
|
11
|
|
|
(8
|
)
|
|
—
|
|
|
3
|
|
||||
Interest expense, net of capitalization
|
|
269
|
|
|
10
|
|
|
27
|
|
|
306
|
|
||||
Income tax expense (benefit)
|
|
153
|
|
|
4
|
|
|
(14
|
)
|
|
143
|
|
||||
Capital expenditures
|
|
1,612
|
|
|
1,125
|
|
|
3
|
|
|
2,740
|
|
||||
Adjusted net income
|
|
466
|
|
|
223
|
|
|
(15
|
)
|
|
673
|
|
||||
As of December 31, 2019
|
|
|
|
|
|
|
|
|
||||||||
Property, plant and equipment
|
|
15,840
|
|
|
9,368
|
|
|
10
|
|
|
25,218
|
|
||||
Equity method investments
|
|
139
|
|
|
506
|
|
|
—
|
|
|
645
|
|
||||
Total assets
|
|
$
|
23,250
|
|
|
$
|
13,163
|
|
|
$
|
(1,997
|
)
|
|
$
|
34,416
|
|
(a)
|
Includes Corporate and intersegment eliminations.
|
For the year ended December 31, 2018
(Millions) |
|
Networks
|
|
Renewables
|
|
Other(a)
|
|
AVANGRID Consolidated
|
||||||||
Revenue - external
|
|
$
|
5,304
|
|
|
$
|
1,137
|
|
|
$
|
37
|
|
|
$
|
6,478
|
|
Revenue - intersegment
|
|
6
|
|
|
2
|
|
|
(8
|
)
|
|
—
|
|
||||
Loss from assets held for sale
|
|
—
|
|
|
—
|
|
|
16
|
|
|
16
|
|
||||
Depreciation and amortization
|
|
503
|
|
|
352
|
|
|
—
|
|
|
855
|
|
||||
Operating income
|
|
975
|
|
|
136
|
|
|
16
|
|
|
1,127
|
|
||||
Earnings (losses) from equity method investments
|
|
13
|
|
|
(3
|
)
|
|
—
|
|
|
10
|
|
||||
Interest expense, net of capitalization
|
|
260
|
|
|
33
|
|
|
10
|
|
|
303
|
|
||||
Income tax expense (benefit)
|
|
169
|
|
|
(31
|
)
|
|
32
|
|
|
170
|
|
||||
Capital expenditures
|
|
1,377
|
|
|
410
|
|
|
—
|
|
|
1,787
|
|
||||
Adjusted net income
|
|
486
|
|
|
185
|
|
|
13
|
|
|
684
|
|
||||
As of December 31, 2018
|
|
|
|
|
|
|
|
|
||||||||
Property, plant and equipment
|
|
14,754
|
|
|
8,697
|
|
|
8
|
|
|
23,459
|
|
||||
Equity method investments
|
|
142
|
|
|
224
|
|
|
—
|
|
|
366
|
|
||||
Total assets
|
|
$
|
22,239
|
|
|
$
|
10,703
|
|
|
$
|
(775
|
)
|
|
$
|
32,167
|
|
(a)
|
Includes Corporate, Gas and intersegment eliminations.
|
For the year ended December 31, 2017
(Millions) |
|
Networks
|
|
Renewables
|
|
Other (a)
|
|
AVANGRID Consolidated
|
||||||||
Revenue - external
|
|
$
|
4,950
|
|
|
$
|
1,038
|
|
|
$
|
(25
|
)
|
|
$
|
5,963
|
|
Revenue - intersegment
|
|
11
|
|
|
9
|
|
|
(20
|
)
|
|
—
|
|
||||
Loss from assets held for sale
|
|
—
|
|
|
—
|
|
|
642
|
|
|
642
|
|
||||
Depreciation and amortization
|
|
474
|
|
|
325
|
|
|
25
|
|
|
824
|
|
||||
Operating income (loss)
|
|
1,114
|
|
|
92
|
|
|
(701
|
)
|
|
505
|
|
||||
Earnings (losses) from equity method investments
|
|
15
|
|
|
(55
|
)
|
|
—
|
|
|
(40
|
)
|
||||
Interest expense, net of capitalization
|
|
244
|
|
|
28
|
|
|
8
|
|
|
280
|
|
||||
Income tax expense (benefit)
|
|
316
|
|
|
(320
|
)
|
|
(255
|
)
|
|
(259
|
)
|
||||
Capital expenditures
|
|
1,305
|
|
|
1,097
|
|
|
14
|
|
|
2,416
|
|
||||
Adjusted net income
|
|
$
|
507
|
|
|
$
|
120
|
|
|
$
|
55
|
|
|
$
|
682
|
|
(a)
|
Includes Corporate, Gas and intersegment eliminations.
|
Years Ended December 31,
|
|
2019
|
|
2018
|
|
2017
|
||||||
(Millions)
|
|
|
|
|
|
|
||||||
Adjusted Net Income Attributable to Avangrid, Inc.
|
|
$
|
673
|
|
|
$
|
684
|
|
|
$
|
682
|
|
Adjustments:
|
|
|
|
|
|
|
||||||
Impairment of equity method and other investment (1)
|
|
—
|
|
|
—
|
|
|
(49
|
)
|
|||
Restructuring charges (2)
|
|
(6
|
)
|
|
(4
|
)
|
|
(20
|
)
|
|||
Mark-to-market adjustments - Renewables (3)
|
|
76
|
|
|
(25
|
)
|
|
(15
|
)
|
|||
Loss from held for sale measurement (4)
|
|
—
|
|
|
(16
|
)
|
|
(642
|
)
|
|||
Impact of the Tax Act (5)
|
|
—
|
|
|
(46
|
)
|
|
328
|
|
|||
Accelerated depreciation from repowering (6)
|
|
(33
|
)
|
|
(3
|
)
|
|
—
|
|
|||
Income tax impact of adjustments
|
|
(10
|
)
|
|
(6
|
)
|
|
162
|
|
|||
Gas Storage, net of tax (7)
|
|
—
|
|
|
11
|
|
|
(64
|
)
|
|||
Net Income Attributable to Avangrid, Inc.
|
|
$
|
700
|
|
|
$
|
595
|
|
|
$
|
381
|
|
(1)
|
Represents OTTI on equity method investment recorded in 2017.
|
(2)
|
Restructuring and severance related charges relate to costs resulted from restructuring actions involving initial targeted voluntary workforce reductions and related costs in our plan to vacate a lease, predominantly within the Networks segment and costs to implement an initiative to mitigate costs and achieve sustainable growth (See Note 27 - Restructuring and Severance Related Expenses – for further details).
|
(3)
|
Mark-to-market earnings relates to earnings impacts from changes in the fair value of Renewables' derivative instruments associated with electricity and natural gas.
|
(4)
|
Represents loss from measurement of assets and liabilities held for sale in connection with the committed plan to sell the gas trading and storage businesses.
|
(5)
|
Represents the impact from measurement of deferred income tax balances as a result of the Tax Act enacted by the U.S. federal government on December 22, 2017.
|
(6)
|
Represents the amount of accelerated depreciation derived from repowering wind farms in Renewables.
|
(7)
|
Removal of the impact from Gas activity in the reconciliation to AVANGRID Net Income.
|
Years Ended December 31,
|
|
2019
|
|
2018
|
|
2017
|
||||||||||||||||||
(Millions)
|
|
Sales To
|
|
Purchases From
|
|
Sales To
|
|
Purchases From
|
|
Sales To
|
|
Purchases From
|
||||||||||||
Iberdrola Canada Energy Services, Ltd
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(5
|
)
|
|
$
|
—
|
|
|
$
|
(33
|
)
|
Iberdrola Renovables Energia, S.L.
|
|
$
|
—
|
|
|
$
|
(9
|
)
|
|
$
|
—
|
|
|
$
|
(14
|
)
|
|
$
|
—
|
|
|
$
|
(9
|
)
|
Iberdrola, S.A.
|
|
$
|
1
|
|
|
$
|
(42
|
)
|
|
$
|
1
|
|
|
$
|
(38
|
)
|
|
$
|
1
|
|
|
$
|
(36
|
)
|
Iberdrola Financiación, S.A.
|
|
$
|
—
|
|
|
$
|
(3
|
)
|
|
$
|
—
|
|
|
$
|
(3
|
)
|
|
$
|
—
|
|
|
$
|
(2
|
)
|
Iberdrola Energia Monterrey, S.A. de C.V.
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
46
|
|
|
$
|
—
|
|
Vineyard Wind
|
|
$
|
13
|
|
|
$
|
—
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Other
|
|
$
|
2
|
|
|
$
|
(3
|
)
|
|
$
|
2
|
|
|
$
|
(5
|
)
|
|
$
|
1
|
|
|
$
|
(1
|
)
|
As of December 31,
|
|
2019
|
|
2018
|
||||||||||||
(Millions)
|
|
Owed By
|
|
Owed To
|
|
Owed By
|
|
Owed To
|
||||||||
Siemens-Gamesa
|
|
$
|
—
|
|
|
$
|
(18
|
)
|
|
$
|
—
|
|
|
$
|
(14
|
)
|
Iberdrola, S.A.
|
|
$
|
1
|
|
|
$
|
(42
|
)
|
|
$
|
1
|
|
|
$
|
(40
|
)
|
Iberdrola Renovables Energía, S.L.
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4
|
|
|
$
|
—
|
|
Vineyard Wind
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Other
|
|
$
|
4
|
|
|
$
|
(4
|
)
|
|
$
|
1
|
|
|
$
|
(4
|
)
|
|
|
Number of PSUs
|
|
Weighted Average Grant Date Fair Value
|
|||
Nonvested Balance – December 31, 2018
|
|
1,268,722
|
|
|
$
|
32.80
|
|
Granted
|
|
6,284
|
|
|
$
|
38.78
|
|
Forfeited
|
|
(726
|
)
|
|
$
|
31.80
|
|
Nonvested Balance – December 31, 2019
|
|
1,274,280
|
|
|
$
|
32.83
|
|
For the Year Ended December 31,
|
|
2019
|
||
|
|
(Millions)
|
||
Beginning Balance
|
|
$
|
4
|
|
Restructuring and severance related expenses
|
|
4
|
|
|
Payments
|
|
(3
|
)
|
|
Ending Balance
|
|
$
|
5
|
|
|
|
1st Quarter
|
|
2nd Quarter
|
|
3rd Quarter
|
|
4th Quarter
|
||||||||
(Millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating revenues
|
|
$
|
1,842
|
|
|
$
|
1,400
|
|
|
$
|
1,487
|
|
|
$
|
1,609
|
|
Operating Income
|
|
$
|
341
|
|
|
$
|
207
|
|
|
$
|
239
|
|
|
$
|
216
|
|
Net Income
|
|
$
|
216
|
|
|
$
|
105
|
|
|
$
|
139
|
|
|
$
|
216
|
|
Net Income attributable to Avangrid, Inc.
|
|
$
|
217
|
|
|
$
|
110
|
|
|
$
|
150
|
|
|
$
|
223
|
|
Earnings Per Common Share, Basic and Diluted: (1)
|
|
$
|
0.70
|
|
|
$
|
0.36
|
|
|
$
|
0.48
|
|
|
$
|
0.72
|
|
2018
|
|
|
|
|
|
|
|
|
||||||||
Operating revenues
|
|
$
|
1,865
|
|
|
$
|
1,402
|
|
|
$
|
1,546
|
|
|
$
|
1,665
|
|
Operating Income
|
|
$
|
403
|
|
|
$
|
222
|
|
|
$
|
253
|
|
|
$
|
249
|
|
Net Income
|
|
$
|
238
|
|
|
$
|
110
|
|
|
$
|
134
|
|
|
$
|
116
|
|
Net Income attributable to Avangrid, Inc.
|
|
$
|
244
|
|
|
$
|
107
|
|
|
$
|
125
|
|
|
$
|
119
|
|
Earnings Per Common Share, Basic and Diluted: (1)
|
|
$
|
0.79
|
|
|
0.35/0.34
|
|
|
$
|
0.40
|
|
|
$
|
0.38
|
|
(1)
|
Based on 309.5 million weighted average number of shares outstanding each quarter in both 2019 and 2018 for basic and diluted earnings per share.
|
Years Ended December 31,
|
|
2019
|
|
2018
|
|
2017
|
||||||
Operating Revenues
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Operating Expenses
|
|
|
|
|
|
|
||||||
Operating expense
|
|
3
|
|
|
3
|
|
|
3
|
|
|||
Taxes other than income taxes
|
|
(12
|
)
|
|
(11
|
)
|
|
5
|
|
|||
Total Operating Expenses
|
|
(9
|
)
|
|
(8
|
)
|
|
8
|
|
|||
Operating Income (Loss)
|
|
9
|
|
|
8
|
|
|
(8
|
)
|
|||
Other Income
|
|
|
|
|
|
|
||||||
Other income
|
|
59
|
|
|
48
|
|
|
58
|
|
|||
Equity earnings of subsidiaries
|
|
711
|
|
|
604
|
|
|
312
|
|
|||
Interest expense
|
|
(93
|
)
|
|
(56
|
)
|
|
(29
|
)
|
|||
Income Before Income Tax
|
|
686
|
|
|
604
|
|
|
333
|
|
|||
Income tax (benefit) expense
|
|
(14
|
)
|
|
9
|
|
|
(48
|
)
|
|||
Net Income
|
|
$
|
700
|
|
|
$
|
595
|
|
|
$
|
381
|
|
Years Ended December 31,
|
|
2019
|
|
2018
|
|
2017
|
||||||
Net Income
|
|
$
|
700
|
|
|
$
|
595
|
|
|
$
|
381
|
|
Other comprehensive (loss) income of subsidiaries
|
|
(11
|
)
|
|
(25
|
)
|
|
40
|
|
|||
Comprehensive Income
|
|
$
|
689
|
|
|
$
|
570
|
|
|
$
|
421
|
|
As of December 31,
|
|
2019
|
|
2018
|
||||
Assets
|
|
|
|
|
||||
Current Assets
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
146
|
|
|
$
|
—
|
|
Accounts receivable from subsidiaries
|
|
22
|
|
|
306
|
|
||
Notes receivable from subsidiaries
|
|
2,529
|
|
|
666
|
|
||
Prepayments and other current assets
|
|
—
|
|
|
21
|
|
||
Total current assets
|
|
2,697
|
|
|
993
|
|
||
Investments in subsidiaries
|
|
16,859
|
|
|
16,067
|
|
||
Other assets
|
|
|
|
|
||||
Deferred income taxes
|
|
374
|
|
|
312
|
|
||
Other
|
|
3
|
|
|
1
|
|
||
Total other assets
|
|
377
|
|
|
313
|
|
||
Total Assets
|
|
$
|
19,933
|
|
|
$
|
17,373
|
|
Liabilities
|
|
|
|
|
||||
Current Liabilities
|
|
|
|
|
||||
Current portion of debt
|
|
$
|
456
|
|
|
$
|
8
|
|
Notes payable
|
|
561
|
|
|
588
|
|
||
Notes payable to subsidiaries
|
|
1,674
|
|
|
456
|
|
||
Accounts payable and accrued liabilities
|
|
2
|
|
|
10
|
|
||
Accounts payable to subsidiaries
|
|
7
|
|
|
9
|
|
||
Interest accrued
|
|
10
|
|
|
7
|
|
||
Interest accrued subsidiaries
|
|
18
|
|
|
6
|
|
||
Dividends payable
|
|
136
|
|
|
136
|
|
||
Taxes accrued
|
|
24
|
|
|
—
|
|
||
Total current liabilities
|
|
2,888
|
|
|
1,220
|
|
||
Non-current debt
|
|
1,808
|
|
|
1,049
|
|
||
Total Liabilities
|
|
4,696
|
|
|
2,269
|
|
||
Equity
|
|
|
|
|
||||
Stockholders' Equity:
|
|
|
|
|
||||
Common stock
|
|
3
|
|
|
3
|
|
||
Additional paid-in capital
|
|
13,660
|
|
|
13,657
|
|
||
Treasury Stock
|
|
(12
|
)
|
|
(12
|
)
|
||
Retained earnings
|
|
1,681
|
|
|
1,528
|
|
||
Accumulated other comprehensive loss
|
|
(95
|
)
|
|
(72
|
)
|
||
Total Equity
|
|
15,237
|
|
|
15,104
|
|
||
Total Liabilities and Equity
|
|
$
|
19,933
|
|
|
$
|
17,373
|
|
Years Ended December 31,
|
|
2019
|
|
2018
|
|
2017
|
||||||
Net Cash used in Operating Activities
|
|
$
|
(1,299
|
)
|
|
$
|
(323
|
)
|
|
$
|
(1
|
)
|
Cash Flow from Investing Activities
|
|
|
|
|
|
|
||||||
Notes receivable from subsidiaries
|
|
633
|
|
|
462
|
|
|
(532
|
)
|
|||
Investments in subsidiaries
|
|
(399
|
)
|
|
(48
|
)
|
|
—
|
|
|||
Return of capital from investments in subsidiaries
|
|
433
|
|
|
116
|
|
|
308
|
|
|||
Net Cash (used in) provided by Investing Activities
|
|
667
|
|
|
530
|
|
|
(224
|
)
|
|||
Cash Flow from Financing Activities
|
|
|
|
|
|
|
||||||
Receipts (repayments) of short-term notes payable from subsidiaries, net
|
|
107
|
|
|
246
|
|
|
(246
|
)
|
|||
(Repayments) receipts of short-term notes payable
|
|
(27
|
)
|
|
82
|
|
|
357
|
|
|||
Proceeds of non-current debt
|
|
1,243
|
|
|
—
|
|
|
594
|
|
|||
Repurchase of common stock
|
|
—
|
|
|
(4
|
)
|
|
(3
|
)
|
|||
Issuance of common stock
|
|
—
|
|
|
(2
|
)
|
|
(1
|
)
|
|||
Dividends paid
|
|
(545
|
)
|
|
(537
|
)
|
|
(535
|
)
|
|||
Net Cash provided by (used in) Financing Activities
|
|
778
|
|
|
(215
|
)
|
|
166
|
|
|||
Net Increase (Decrease) in Cash and Cash Equivalents
|
|
146
|
|
|
(8
|
)
|
|
(59
|
)
|
|||
Cash and Cash Equivalents, Beginning of Year
|
|
—
|
|
|
8
|
|
|
67
|
|
|||
Cash and Cash Equivalents, End of Year
|
|
$
|
146
|
|
|
$
|
—
|
|
|
$
|
8
|
|
Supplemental Cash Flow Information
|
|
|
|
|
|
|
|
|
|
|||
Cash paid for interest
|
|
$
|
85
|
|
|
$
|
55
|
|
|
$
|
52
|
|
Cash paid (refunded) payment for income taxes
|
|
$
|
43
|
|
|
$
|
55
|
|
|
$
|
(8
|
)
|
Years ended December 31,
|
|
2019
|
|
2018
|
|
2017
|
||||||
(millions)
|
|
|
|
|
|
|
|
|
|
|||
AVANGRID Networks
|
|
$
|
433
|
|
|
$
|
116
|
|
|
$
|
308
|
|
(i)
|
pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
|
(ii)
|
provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with U.S. generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and
|
(iii)
|
provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company's assets that could have a material effect on the financial statements.
|
Exhibit Number
|
|
Exhibit Description
|
|
|
|
2.1
|
|
|
|
|
|
3.1
|
|
|
|
|
|
3.2
|
|
|
|
|
|
4.1
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4.2
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4.3
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4.4
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4.5
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4.6
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4.7
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4.8
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4.9
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Exhibit Number
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Exhibit Description
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10.1
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10.2
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10.3
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10.4
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10.5
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10.6
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10.7
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10.8
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10.9
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10.10
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10.11
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10.12
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10.13
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Exhibit Number
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Exhibit Description
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10.14
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10.15
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10.16
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10.17
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10.18
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10.19
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10.20
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10.21
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10.22
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10.23
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10.24
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10.25
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10.26
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10.27
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10.28
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Exhibit Number
|
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Exhibit Description
|
10.29
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10.30
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10.31
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10.32
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10.33
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10.34
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10.35
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10.36
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10.37
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10.38
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10.39
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10.40
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10.41
|
|
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Exhibit Number
|
|
Exhibit Description
|
10.42
|
|
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|
10.43
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|
10.44
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10.45
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10.46
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10.47
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10.48
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10.49
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10.50
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10.51
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10.52
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10.53
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10.54
|
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10.55
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10.56
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21.1
|
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23.1
|
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31.1
|
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Exhibit Number
|
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Exhibit Description
|
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31.2
|
|
|
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|
32
|
|
|
|
|
|
101.INS
|
|
Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
|
|
|
|
101.SCH
|
|
Inline XBRL Taxonomy Extension Schema Document.*
|
|
|
|
101.CAL
|
|
Inline XBRL Taxonomy Extension Calculation Linkbase Document.*
|
|
|
|
101.DEF
|
|
Inline XBRL Taxonomy Extension Definition Linkbase Document.*
|
|
|
|
101.LAB
|
|
Inline XBRL Taxonomy Extension Label Linkbase Document.*
|
|
|
|
101.PRE
|
|
Inline XBRL Taxonomy Extension Presentation Linkbase Document.*
|
|
|
|
104
|
|
The cover page from the Company's Annual Report on Form 10-K for the year ended December 31, 2019, formatted as Inline XBRL and contained in Exhibit 101.
|
*
|
Filed herewith.
|
†
|
Compensatory plan or agreement.
|
—
|
Confidential treatment has been requested for portions of this document. The omitted portions of this document have been submitted separately to the Securities and Exchange Commission.
|
|
|
Avangrid, Inc.
|
||
Date: March 2, 2020
|
|
By:
|
|
/s/ James P. Torgerson
|
|
|
|
|
James P. Torgerson
|
|
|
|
|
Director and Chief Executive Officer
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/ James P. Torgerson
|
|
Director and Chief Executive Officer
(Principal Executive Officer)
|
|
March 2, 2020
|
James P. Torgerson
|
|
|
|
|
/s/ Douglas K. Stuver
|
|
Chief Financial Officer
(Principal Financial Officer)
|
|
March 2, 2020
|
Douglas K. Stuver
|
|
|
|
|
/s/ Scott M. Tremble
|
|
Controller
(Principal Accounting Officer)
|
|
March 2, 2020
|
Scott M. Tremble
|
|
|
|
|
/s/ Ignacio Sánchez Galán
|
|
Chairman of the Board
|
|
March 2, 2020
|
Ignacio Sánchez Galán
|
|
|
|
|
/s/ John E. Baldacci
|
|
Director
|
|
March 2, 2020
|
John E. Baldacci
|
|
|
|
|
/s/ Pedro Azagra Blázquez
|
|
Director
|
|
March 2, 2020
|
Pedro Azagra Blázquez
|
|
|
|
|
/s/ Robert Duffy
|
|
Director
|
|
March 2, 2020
|
Robert Duffy
|
|
|
|
|
/s/ Teresa Herbert
|
|
Director
|
|
March 2, 2020
|
Teresa Herbert
|
|
|
|
|
/s/ Patricia Jacobs
|
|
Director
|
|
March 2, 2020
|
Patricia Jacobs
|
|
|
|
|
/s/ John L. Lahey
|
|
Director
|
|
March 2, 2020
|
John L. Lahey
|
|
|
|
|
/s/ Santiago Martinez Garrido
|
|
Director
|
|
March 2, 2020
|
Santiago Martinez Garrido
|
|
|
|
|
/s/ Sonsoles Rubio Reinoso
|
|
Director
|
|
March 2, 2020
|
Sonsoles Rubio Reinoso
|
|
|
|
|
/s/ José Sáinz Armada
|
|
Director
|
|
March 2, 2020
|
José Sáinz Armada
|
|
|
|
|
/s/ Alan D. Solomont
|
|
Director
|
|
March 2, 2020
|
Alan D. Solomont
|
|
|
|
|
/s/ Elizabeth Timm
|
|
Director
|
|
March 2, 2020
|
Elizabeth Timm
|
|
|
|
|
|
|
|
|
THE UNITED ILLUMINATING COMPANY
|
|
|
|
|
|
|
Date: April 4, 2004
|
|
|
|
|
|
|
|
|
|
Attest:
|
|
|
|
|
/s/ Susan E. Allen
|
|
By:
|
/s/ Nathaniel D. Woodson
|
|
Susan E. Allen
|
|
|
Nathaniel D. Woodson
|
|
Vice President Investor
|
|
|
UIL Chairman, President & CEO
|
|
Relations/Corporate Secretary & Assistant Treasurer
|
|
|
The United Illuminating Company
|
|
|
|
|
Chairman & CEO
|
|
|
|
|
|
|
|
|
By:
|
/s/Anthony Marone III
|
|
|
|
|
Anthony Marone III
|
|
|
|
|
THE UNITED ILLUMINATING COMPANY
|
|
|
|
|
|
|
|
|
|
|
|
Attest:
|
|
|
|
|
/s/ Susan E. Allen
|
|
By:
|
/s/ Nathaniel D. Woodson
|
|
Susan E. Allen
|
|
|
Nathaniel D. Woodson
|
|
Vice President Investor
|
|
|
UIL Chairman, President & CEO
|
|
Relations/Corporate Secretary & Assistant
|
|
|
The United Illuminating Company
|
|
Treasurer
|
|
|
Chairman & CEO
|
|
|
|
|
|
|
|
|
By:
|
/s/Anthony Marone III
|
|
|
|
|
Anthony Marone III
|
4.
|
Section (5)(d) of the Agreement is hereby revised in its entirety to provide as follows: (d) Termination by Executive.
|
|
|
|
|
THE UNITED ILLUMINATING COMPANY
|
|
|
|
|
|
|
Attest:
|
|
|
|
|
/s/ Angel Bruno
|
|
By:
|
/s/ James P. Torgerson
|
|
Angel Bruno
|
|
|
James P. Torgerson
|
|
Vice President Total Rewards
|
|
|
UIL Holdings Corporation, President and
|
|
|
|
|
Chief Executive Officer
|
|
|
|
|
The United Illuminating Company
|
|
|
|
|
Chief Executive Officer
|
|
|
|
|
|
|
|
|
By:
|
/s/Anthony Marone III
|
|
|
|
|
Anthony Marone III
|
|
Sheila Duncan
Chief Human Resources Officer
|
AVANGRID
|
•
|
your employment with the Company can be terminated at any time for any reason by the UIL board of directors, subject to the terms of your Employment Agreement; and
|
•
|
the Company reserves the right to modify, amend or terminate any Company benefit, benefit plan or program, or Company policy at any time and without notice.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By:
|
/s/Anthony Marone III
|
|
|
September 26, 2016
|
|
|
Anthony Marone III
|
|
|
Date
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sincerely,
|
|
|
|
|
|
|
|
|
|
|
|
/s/ Sheila Duncan
|
|
|
|
|
|
Chief Human Resources Officer
|
|
|
|
|
|
AVANGRID
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.
|
Gas Infrastructure — 2016 replacement main installation goal for CNG and SCG (CNG 19 miles and SCG 15 miles). New gas mains completed to achieve growth program 35 miles. 20%
|
2.
|
Complete the integration of UIL companies into the Avangrid matrix organization structure by September 30, 201E 20%
|
3.
|
Assist in Network Integration and 2020 plan. 30%
|
4.
|
Achieve favorable outcome in the UI rate case including investment recognition, customer service, safety, and reliability parameters. 30%
|
(a)
|
Executive acknowledges and recognizes the highly competitive nature of the Company's business and that access to the Company's confidential records and
|
(b)
|
In further consideration of the payment by the Company to Executive of amounts that may hereafter be paid to Executive pursuant to this Agreement (including, without limitation, pursuant to Sections 5 and 7 hereof) and other obligations undertaken by the Company hereunder, Executive agrees that during her employment and the Covered Time, he shall not, directly or indirectly, (i) solicit, encourage or attempt to solicit or encourage any of the employees, agents, consultants or representatives of the Company or any of its affiliates to terminate her, or its relationship with the Company or such affiliate; (ii) solicit, encourage or attempt to solicit or encourage any of the employees, agents, consultants or representatives of the Company or any of its affiliates to become employees, agents, representatives or consultants of any other person or entity; (iii) solicit or attempt to solicit any vendor or distributor of the Company or any of its affiliates in connection with a Competing Business with respect to any product or service being furnished, made, sold, rented or leased by the Company or such affiliate; or (iv) persuade or seek to persuade any vendor or distributor of the Company or any affiliate to cease to do business or to reduce the amount of business which such customer, vendor or distributor has customarily done or contemplates doing with the Company or such affiliate.
|
(c)
|
Executive understands that the provisions of this Section 9.2 may limit her ability to earn a livelihood in a business similar to the business of the Company or its affiliates but nevertheless agrees and hereby acknowledges that the consideration provided under this Agreement, including any amounts or benefits provided under Sections 5 and 7 hereof and other obligations undertaken by the Company hereunder, is sufficient to justify the restrictions contained in such provisions. In consideration thereof and in light of Executive's education, skills and abilities, Executive agrees that he will not assert in any forum that such provisions prevent her from earning a living or otherwise are void or unenforceable or should be held void or unenforceable.
|
(P)
|
"Term" shall have the meaning stated in Section 3 hereof.
|
|
|
AVANGRID RENEWABLES, LLC
|
|
|
|
|
|
|
|
By:
|
/s/ Sheila Duncan
|
|
Names:
|
Sheila Duncan
|
|
Title:
|
Chief Human Resources Office
|
|
|
|
|
|
|
|
|
EXECUTIVE
|
|
|
|
|
By:
|
/s/ Laura J. Beane
|
|
|
Laura J. Beane
|
1.1
|
Pay you, as set forth in Section 7.1 of the Employment Agreement, a lump sum payment payable on October 1, 2020, six months and one day after the Date of Termination, March 31, 2020, equal
|
2.
|
No Other Consideration
|
|
|
|
/s/ Peter Church
|
|
Peter Church
|
|
Chief Human Resources Office
|
|
|
|
Accepted this 7th day of October 2019 by:
|
|
|
|
/s/ Laura J. Beane
|
|
Laura J. Beane
|
(P)
|
"Term" shall have the meaning stated in Section 3 hereof.
|
|
|
AVANGRID RENEWABLES, LLC
|
|
|
|
|
|
|
|
By:
|
/s/ Sheila Duncan
|
|
Names:
|
Sheila Duncan
|
|
Title:
|
Chief Human Resources Office
|
|
|
|
|
|
|
|
|
EXECUTIVE
|
|
|
|
|
By:
|
/s/ Laura J. Beane
|
|
|
Laura J. Beane
|
Name of Subsidiary
|
|
State or Jurisdiction of Incorporation Or Organization
|
|
|
|
Avangrid Networks, Inc.(1)*
|
|
Maine
|
|
|
|
New York State Electric & Gas Corporation(2)
|
|
New York
|
|
|
|
Rochester Gas and Electric Corporation(2)
|
|
New York
|
|
|
|
Central Maine Power Company(2)
|
|
Maine
|
|
|
|
Maine Natural Gas Corporation(2)
|
|
Maine
|
|
|
|
UIL Holdings Corporation(2)
|
|
Connecticut
|
|
|
|
The United Illuminating Company(4)
|
|
Connecticut
|
|
|
|
The Southern Connecticut Gas Company(4)
|
|
Connecticut
|
|
|
|
Connecticut Natural Gas Corporation(4)
|
|
Connecticut
|
|
|
|
The Berkshire Gas Company(4)
|
|
Massachusetts
|
|
|
|
Avangrid Renewables Holdings, Inc.(1)*
|
|
Delaware
|
|
|
|
Avangrid Renewables, LLC(3)
|
|
Oregon
|
|
|
|
(1)
|
Subsidiary of Avangrid, Inc.
|
(2)
|
Subsidiary of Avangrid Networks, Inc.
|
(3)
|
Subsidiary of Avangrid Renewables Holdings, Inc.
|
(4)
|
Subsidiary of UIL Holdings Corporation
|
*
|
Holding Company
|
Date: March 2, 2020
|
|
/s/ James P. Torgerson
|
|
|
James P. Torgerson
|
|
|
Director and Chief Executive Officer
|
Date: March 2, 2020
|
|
/s/ Douglas K. Stuver
|
|
|
Douglas K. Stuver
Chief Financial Officer
|
/s/ James P. Torgerson
|
|
|
James P. Torgerson
|
|
|
Director and Chief Executive Officer
|
|
|
Avangrid, Inc.
|
|
|
March 2, 2020
|
|
|
/s/ Douglas K. Stuver
|
|
|
Douglas K. Stuver
|
|
|
Chief Financial Officer
|
|
|
Avangrid, Inc.
|
|
|
March 2, 2020
|
|
|