v3.26.1
Significant Accounting Policies (Tables)
 6 Months Ended
Jun. 30, 2026
Accounting Policies [Abstract]  
Schedule of Regulatory Assets
Amounts deferred as regulatory assets and liabilities for NW Holdings and NW Natural were as follows:
Regulatory Assets
June 30,December 31,
In thousands202620252025
Current:
NW Natural:
Unrealized loss on derivatives(1)
$36,508 $25,977 $63,578 
Gas costs19,240 5,973 6,284 
Environmental costs(2)
12,690 11,447 12,148 
Decoupling(3)
42,164 9,313 11,631 
Pension balancing(4)
7,131 7,131 7,131 
Income taxes2,208 2,208 2,208 
Washington Climate Commitment Act compliance7,754 7,874 7,482 
Security and systems improvements1,270 2,018 1,771 
Industrial demand side management(5)
12,181 13,612 10,539 
Weather Adjusted Rate Mechanism15,099 8,708 9,932 
Other(6)
11,197 8,929 10,431 
Total current - NW Natural167,442 103,190 143,135 
SiEnergy331 699 410 
NWN Water319 25 200 
Total current - NW Holdings$168,092 $103,914 $143,745 
Non-current:
NW Natural:
Unrealized loss on derivatives(1)
$17,541 $7,908 $14,039 
Pension balancing(4)
12,004 18,169 15,647 
Income taxes9,289 8,993 9,148 
Pension and other postretirement benefit liabilities91,539 106,705 96,008 
Environmental costs(2)
386,293 160,120 180,063 
Gas costs4,983 1,360 9,434 
Decoupling(3)
11,069 1,534 8,891 
Washington Climate Commitment Act compliance48,228 32,851 33,085 
Security and systems improvements8,085 8,369 8,234 
Industrial demand side management(5)
2,604 1,906 9,334 
Weather Adjusted Rate Mechanism3,424 1,332 6,062 
Other(6)
38,129 21,289 29,902 
Total non-current - NW Natural633,188 370,536 419,847 
SiEnergy HB 4384 depreciation deferral(7)
4,675 — 2,095 
SiEnergy other1,636 995 1,412 
NWN Water1,157 1,137 840 
Total non-current - NW Holdings$640,656 $372,668 $424,194 
(1)Unrealized gains or losses on derivatives are non-cash items and therefore do not earn a rate of return or a carrying charge. These amounts are recoverable through NW Natural rates as part of the annual Purchased Gas Adjustment (PGA) mechanism when realized at settlement.
(2)Refer to the Environmental Cost Deferral and Recovery table in Note 17 for a description of environmental costs.
(3)This deferral represents the margin adjustment resulting from differences between actual and expected volumes. 
(4)Balance represents deferred net periodic benefit costs as approved by the OPUC.
(5)Energy efficiency program for industrial sales customers in Oregon to provide assistance with reducing their gas usage.
(6)Balances consist of deferrals and amortizations under approved regulatory mechanisms and typically earn a rate of return or carrying charge.
(7)HB 4384 became effective on June 20, 2025. The Company began deferring depreciation costs on July 1, 2025.
The following table presents information regarding the total regulatory asset deferred:
June 30,December 31,
In thousands202620252025
Deferred costs and interest (1)
$79,609 $69,335 $71,954 
Accrued site liabilities (2)
362,225 150,488 161,993 
Insurance proceeds and interest(42,851)(48,257)(41,736)
Total regulatory asset deferral(1)
$398,983 $171,566 $192,211 
Current regulatory assets(3)
$12,690 $11,447 $12,148 
Long-term regulatory assets(3)
386,293 160,120 180,063 
(1)    Includes pre-review and post-review deferred costs, amounts currently in amortization, and interest, net of amounts collected from customers.
(2)    Excludes 3.3% of the Front Street site liability as the OPUC only allows recovery of 96.7% of costs for those sites allocable to Oregon, including those that historically served only Oregon customers. Amounts excluded from regulatory assets were immaterial at June 30, 2026, June 30, 2025, and December 31, 2025.
(3)    Environmental costs relate to specific sites approved for regulatory deferral by the OPUC and WUTC. In Oregon, NW Natural earns a carrying charge on cash amounts paid, whereas amounts accrued but not yet paid do not earn a carrying charge until expended. It also accrues a carrying charge on insurance proceeds for amounts owed to customers. In Washington, neither the cash paid for insurance proceeds received accrue a carrying charge. Current environmental costs represent remediation costs management expects to collect from customers in the next 12 months. Amounts included in this estimate are still subject to a prudence and earnings test review by the OPUC and do not include the $5 million tariff rider. The amounts allocable to Oregon are recoverable through NW Natural rates, subject to an earnings test.
Schedule of Regulatory Liabilities
Regulatory Liabilities
June 30,December 31,
In thousands202620252025
Current:
NW Natural:
Gas costs$17,217 $41,049 $34,172 
Unrealized gain on derivatives(1)
4,338 7,182 3,922 
Decoupling(2)
1,691 6,811 5,181 
Income taxes5,406 4,726 5,406 
Asset optimization revenue sharing13,971 14,121 25,981 
Washington Climate Commitment Act compliance66,556 51,801 57,441 
Other(3)
6,692 5,082 5,805 
Total current - NW Natural115,871 130,772 137,908 
SiEnergy62 24 66 
NWN Water101 148 — 
Total current - NW Holdings$116,034 $130,944 $137,974 
Non-current:
NW Natural:
Gas costs$1,083 $5,133 $687 
Unrealized gain on derivatives(1)
3,430 4,077 366 
Decoupling(2)
— 841 — 
Income taxes(4)
154,961 160,990 159,176 
Accrued asset removal costs(5)
580,531 543,700 561,594 
Asset optimization revenue sharing— — 2,386 
Washington Climate Commitment Act proceeds5,000 — — 
Other(3)
24,036 21,510 24,637 
Total non-current - NW Natural769,041 736,251 748,846 
SiEnergy asset removal costs9,114 — 8,155 
NWN Water1,303 943 1,406 
Total non-current - NW Holdings$779,458 $737,194 $758,407 
(1)Unrealized gains or losses on derivatives are non-cash items and therefore do not earn a rate of return or a carrying charge. These amounts are recoverable through NW Natural rates as part of the annual Purchased Gas Adjustment (PGA) mechanism when realized at settlement.
(2)This deferral represents the margin adjustment resulting from differences between actual and expected volumes. 
(3)Balances consist of deferrals and amortizations under approved regulatory mechanisms and typically earn a rate of return or carrying charge.
(4)Balance represents excess deferred income tax benefits subject to regulatory flow-through. See Note 11.
(5)Estimated costs of removal on certain regulated properties are collected through rates.
Schedule of Cash Flow, Supplemental Disclosures
The following table provides a reconciliation of the cash, cash equivalents and restricted cash balances at NW Holdings as of June 30, 2026 and 2025 and December 31, 2025:
June 30,December 31,
In thousands202620252025
Cash and cash equivalents$24,234 $102,579 $36,673 
Restricted cash included in other current assets5,610 4,085 4,404 
Cash, cash equivalents and restricted cash$29,844 $106,664 $41,077 

The following table provides a reconciliation of the cash, cash equivalents and restricted cash balances at NW Natural as of June 30, 2026 and 2025 and December 31, 2025:
June 30,December 31,
In thousands202620252025
Cash and cash equivalents$14,979 $82,867 $29,347 
Restricted cash included in other current assets5,585 4,060 4,379 
Cash, cash equivalents and restricted cash$20,564 $86,927 $33,726 
Schedule of Accounts Receivable, Allowance for Credit Loss
The following table presents the activity related to the NW Holdings provision for uncollectible accounts by pool:

As ofAs of
December 31, 2025Six Months Ended June 30, 2026June 30, 2026
In thousandsBeginning BalanceProvision recorded, net of adjustmentsWrite-offs recognized, net of recoveriesEnding Balance
Allowance for uncollectible accounts:
Residential$2,280 $300 $(631)$1,949 
Commercial374 39 (203)210 
Industrial46 17 — 63 
Accrued unbilled and other348 (100)4 252 
Total NW Natural3,048 256 (830)2,474 
Other - NW Holdings1,020 555 (194)1,381 
Total NW Holdings$4,068 $811 $(1,024)$3,855