C001683 2021-01-01 2021-12-31 C001683 2021-12-31 C001683 2020-01-01 2020-12-31 C001683 2020-12-31 C001683 2019-12-31 C001683 2021-10-01 2021-10-31 C001683 2021-11-01 2021-11-30 C001683 2021-12-01 2021-12-31 C001683 ScheduleGasPropertyAndCapacityLeasedFromOthersAbstract 2021-01-01 2021-12-31 C001683 ScheduleGasPropertyAndCapacityLeasedToOthersAbstract 2021-01-01 2021-12-31 C001683 ScheduleNonTraditionalRateTreatmentAffordedNewProjectsAbstract 2021-01-01 2021-12-31 C001683 ScheduleCapitalStockAndLongTermDebtDataAbstract 2021-01-01 2021-12-31 C001683 ScheduleAccumulatedDeferredIncomeTaxesOtherAbstract 2021-01-01 2021-12-31 C001683 ScheduleOtherGasRevenuesAbstract 2021-01-01 2021-12-31 C001683 ferc:GasUtilityMember 2021-01-01 2021-12-31 C001683 ferc:GasUtilityMember 2020-01-01 2020-12-31 C001683 1 2021-01-01 2021-12-31 C001683 1 2020-01-01 2020-12-31 C001683 2 2021-01-01 2021-12-31 C001683 2 2020-01-01 2020-12-31 C001683 1 2021-01-01 2021-12-31 C001683 1 2020-01-01 2020-12-31 C001683 1 2021-01-01 2021-12-31 C001683 1 2020-01-01 2020-12-31 C001683 2 2021-01-01 2021-12-31 C001683 2 2020-01-01 2020-12-31 C001683 3 2021-01-01 2021-12-31 C001683 3 2020-01-01 2020-12-31 C001683 1 2021-01-01 2021-12-31 C001683 1 2020-01-01 2020-12-31 C001683 ferc:GasUtilityMember 2020-12-31 C001683 ferc:GasUtilityMember ferc:GasPlantInServiceMember 2020-12-31 C001683 ferc:GasUtilityMember ferc:GasPlantInServiceMember 2021-01-01 2021-12-31 C001683 10 2021-01-01 2021-12-31 C001683 18 2021-01-01 2021-12-31 C001683 ferc:GasUtilityMember 2021-12-31 C001683 ferc:GasUtilityMember ferc:GasPlantInServiceMember 2021-12-31 C001683 ferc:OperatingUtilityMember 2020-12-31 C001683 ferc:OperatingUtilityMember 2021-01-01 2021-12-31 C001683 ferc:OperatingUtilityMember 2021-12-31 C001683 1 2021-01-01 2021-12-31 C001683 ferc:NegotiatedRateMember 2021-10-01 2021-10-31 C001683 48 2021-10-01 2021-10-31 C001683 ferc:NegotiatedRateMember 2021-11-01 2021-11-30 C001683 48 2021-11-01 2021-11-30 C001683 ferc:NegotiatedRateMember 2021-12-01 2021-12-31 C001683 48 2021-12-01 2021-12-31 C001683 6 2021-01-01 2021-12-31 C001683 7 2021-01-01 2021-12-31 C001683 8 2021-01-01 2021-12-31 C001683 9 2021-01-01 2021-12-31 C001683 1 2021-01-01 2021-12-31 C001683 2 2021-01-01 2021-12-31 C001683 2 2021-01-01 2021-12-31 C001683 3 2021-01-01 2021-12-31 C001683 4 2021-01-01 2021-12-31 C001683 5 2021-01-01 2021-12-31 C001683 8 2021-01-01 2021-12-31 C001683 1 2021-01-01 2021-12-31 C001683 1 2020-12-31 C001683 1 2021-12-31 C001683 1 2021-01-01 2021-12-31 C001683 1 2020-12-31 C001683 1 2021-12-31 C001683 1 2021-01-01 2021-12-31 C001683 16 Stagecoach PL & Storage Co LLC 2021-01-01 2021-12-31 C001683 31 Stagecoach PL & Storage Co LLC 2021-01-01 2021-12-31 C001683 32 Stagecoach PL & Storage Co LLC 2021-01-01 2021-12-31 C001683 33 Stagecoach PL & Storage Co LLC 2021-01-01 2021-12-31 C001683 34 Stagecoach PL & Storage Co LLC 2021-01-01 2021-12-31 C001683 6 2021-01-01 2021-12-31 C001683 9 2021-01-01 2021-12-31 C001683 1 2021-01-01 2021-12-31 C001683 ferc:GasUtilityMember 1 2021-01-01 2021-12-31 C001683 ferc:FederalTaxMember 2021-01-01 2021-12-31 C001683 ferc:GasUtilityMember ferc:FederalTaxMember 2021-01-01 2021-12-31 C001683 3 2021-01-01 2021-12-31 C001683 4 2021-01-01 2021-12-31 C001683 ferc:GasUtilityMember 4 2021-01-01 2021-12-31 C001683 5 2021-01-01 2021-12-31 C001683 ferc:GasUtilityMember 5 2021-01-01 2021-12-31 C001683 6 2021-01-01 2021-12-31 C001683 6 2021-12-31 C001683 ferc:GasUtilityMember 6 2021-01-01 2021-12-31 C001683 ferc:StateTaxMember 2021-01-01 2021-12-31 C001683 ferc:StateTaxMember 2021-12-31 C001683 ferc:GasUtilityMember ferc:StateTaxMember 2021-01-01 2021-12-31 C001683 8 2021-01-01 2021-12-31 C001683 9 2021-01-01 2021-12-31 C001683 9 2020-12-31 C001683 9 2021-12-31 C001683 ferc:GasUtilityMember 9 2021-01-01 2021-12-31 C001683 10 2021-01-01 2021-12-31 C001683 ferc:GasUtilityMember 10 2021-01-01 2021-12-31 C001683 ferc:AdValoremTaxMember 2021-01-01 2021-12-31 C001683 ferc:AdValoremTaxMember 2020-12-31 C001683 ferc:AdValoremTaxMember 2021-12-31 C001683 ferc:GasUtilityMember ferc:AdValoremTaxMember 2021-01-01 2021-12-31 C001683 12 2021-01-01 2021-12-31 C001683 13 2021-01-01 2021-12-31 C001683 ferc:GasUtilityMember 13 2021-01-01 2021-12-31 C001683 ferc:SalesAndUseTaxMember 2021-01-01 2021-12-31 C001683 ferc:GasUtilityMember ferc:SalesAndUseTaxMember 2021-01-01 2021-12-31 C001683 16 2021-01-01 2021-12-31 C001683 ferc:GasUtilityMember 16 2021-01-01 2021-12-31 C001683 17 2021-01-01 2021-12-31 C001683 ferc:GasUtilityMember 17 2021-01-01 2021-12-31 C001683 ferc:PayrollTaxMember 2021-01-01 2021-12-31 C001683 ferc:GasUtilityMember ferc:PayrollTaxMember 2021-01-01 2021-12-31 C001683 20 2021-01-01 2021-12-31 C001683 20 2021-12-31 C001683 ferc:GasUtilityMember 20 2021-01-01 2021-12-31 C001683 ferc:FranchiseTaxMember 2021-01-01 2021-12-31 C001683 ferc:FranchiseTaxMember 2021-12-31 C001683 ferc:GasUtilityMember ferc:FranchiseTaxMember 2021-01-01 2021-12-31 C001683 Stagecoach PL & Storage Co LLC 2021-01-01 2021-12-31 C001683 Stagecoach PL & Storage Co LLC 2021-10-01 2021-12-31 C001683 15 2021-01-01 2021-12-31 C001683 19 2021-01-01 2021-12-31 C001683 22 2021-01-01 2021-12-31 xbrli:pure iso4217:USD utr:dth 0 228825156 228825156 20740373 20740373 20740373 20740373 60146 60146 2805 2805 62951 62951 249502578 249502578 249299632 249299632 202946 202946 10 18 1558733 1558733 477518 89571515 86528615 89571515 86528615 647348976 554533530 91130248 86528615 91130248 86528615 91130248 86528615 91130248 86528615 Account 489.2, Revenues from transportation of gas of others through transmission facilities. 46917556 398285179 40550941 212423582 46917556 398285179 40550941 212423582 1 FERC Annual Charge Adjustment 12 months ending September 30 Pursuant to 18 CFR 154.402 (a) and 18 CFR 382.202 0 837420 928 283223 554197 0 837420 283223 554197 1 11695020 11695020 362066955 -282042908 80024047 282042908 282042908 170157796 77137 60146 170174787 554928 38797 -554928 38797 544474699 115934 60146 -554928 543975559 95051 22413 117464 500159 500159 32356 32356 95051 554928 649979 95051 554928 649979 544474699 210985 60146 544625538 544474699 210985 60146 544625538 NA NA NA NA NA NA <div><p><font style="font-family: arial, helvetica, sans-serif; font-size: 16pt;">See page 122.1, Notes to Financial Statements, Note 1 "General" and Note 4 "Related Party Transactions" for general information on plant and operations.</font></p></div> FERC Form 2 Stagecoach System Map 2022.pdf See system map attached. 1 Deferred Income Tax Rate Adjustment (amortized through May 2036) 121012 411.1 9367 45283 156928 121012 9367 45283 156928 1 Other (less than $250,000) 399522 399522 1 Amortization of regulatory liability -7850 -7850 1 Current income taxes 9016003 4953536 Change in prepayments 481530 66173 Allocation of corporate overhead 4401964 9497533 9421673 1 2 3 64235 1585116 148138 201681 751129 715298 5920227 4682626 269904 35334 2003962 169364 111074 9473367 7184721 85393 61628 636396 1923107 3412 91368 878197 1923107 10351564 9107828 194 194 3045406 6732002 98190 43091 916106 316707 126941 797557 536770 238595 395227 597801 675946 44293 88160 13010 76707 5724676 9017833 5724676 9017833 16076434 18125661 37092323 37092323 38040770 38040770 20740373 20711877 1471773 528928 228597 -595897 -205089 480283 -154104 554197 69447938 68393833 144240 -8581 144240 -8581 58000 -86240 8581 69361698 68402414 -69361698 -68402414 39112 Health and life insurance 143422 Long-term disability insurance 3998 401K employer contributions 55798 Other -3735 6 7 8 9 91130248 86528615 15198237 16202554 15198237 16202554 878197 1923107 878197 1923107 20740373 20711877 20740373 20711877 5774823 5116505 5774823 5116505 6446867 4041346 6446867 4041346 2579121 912190 2579121 912190 1481140 528928 1481140 528928 9367 9367 53089391 49436507 53089391 49436507 38040857 37092108 38040857 37092108 215 215 215 87 87 38040770 37092323 0 0 0 544625538 544474699 60324 129874 544685862 544604573 249502578 228825156 295183284 315779417 295183284 315779417 7622065 6985583 194 76505 484196 1716157 2197687 9414533 9667466 1166565 43819 1764581 306362398 325446883 301143048 322281408 301143048 322281408 773943 231334 18389 8485 742079 773279 1542896 1004613 3519526 2039850 3676454 2160862 306362398 325446883 Distribution of Earnings to Members 211 -38040770 -37092323 Balance Transferred from Income (Acct 433 less Acct 418.1) 38040770 37092323 1 2 Distributions to Members 69361698 68402414 1 Directly Charged Salaries and Wages Kinder Morgan, Inc. Various 1072811 Other Compensation and Benefits Kinder Morgan, Inc. Various 174820 Shared Services Kinder Morgan, Inc. Various 702161 Shared Services Allocation Crestwood Midstream Partners, LP 920 2442755 Construction Overheads Kinder Morgan, Inc. 107 9616 4402163 Transportation Revenues Consolidated Edison, Inc. 489.2 2951659 2951659 2 3 4 5 6 9 Stagecoach PL & Storage Co LLC 629445779 166883702 40029593 10350807 46637404 11204786 1608670 422804 717721446 188862099 477518 647348976 170985611 68267983 13952752 199401 22097 1004119 241009 Other Gas Used Fuel and L&U Retention True Up Line Pack Change Imbalance Adjustments 717297997 185201469 717297997 185201469 16 31 32 33 34 129992 129992 552986 552986 25741 25741 109502 109502 155733 155733 662488 662488 69024 69024 293629 293629 25741 25741 109502 109502 94765 94765 403131 403131 60968 60968 259357 259357 60968 60968 259357 259357 60968 60968 259357 259357 60968 60968 259357 259357 Gas due from shippers 118357 118357 529174 529174 10558 10558 47205 47205 128915 128915 576379 576379 62799 62799 280775 280775 10558 10558 47205 47205 73357 73357 327980 327980 55558 55558 248399 248399 55558 55558 248399 248399 55558 55558 248399 248399 55558 55558 248399 248399 Gas due from shippers 128699 128699 375415 375415 9457 9457 27586 27586 138156 138156 403001 403001 63430 63430 185026 185026 9457 9457 27586 27586 72887 72887 212612 212612 65269 65269 190389 190389 65269 65269 190389 190389 65269 65269 190389 190389 65269 65269 190389 190389 Gas due from shippers Federal Income Tax Federal Tax Federal 6446867 -6446867 6446867 Subtotal Federal Tax 6446867 -6446867 6446867 State Income Tax - New York State Tax New York 1126930 -1126930 1126930 0.0383 State Income Tax - Pennsylvania State Tax Pennsylvania 1442206 -1442206 1442206 0.0490 Texas Margin Tax State Tax Texas 9985 9985 9985 Subtotal State Tax 2579121 -2569136 9985 2579121 Ad Valorem Tax - New York Ad Valorem Tax New York 1680217 5513094 5465246 1632369 5513094 Ad Valorem Tax - Pennsylvania Ad Valorem Tax Pennsylvania 33657 33657 33657 Subtotal Ad Valorem Tax 1680217 5546751 5498903 1632369 5546751 Use Tax - Pennsylvania Sales And Use Tax Pennsylvania 2818 2818 2818 Subtotal Sales And Use Tax 2818 2818 2818 Payroll - FICA Tax Payroll Tax 177905 177905 177905 Payroll - Unemployment Tax Payroll Tax 5552 5552 5552 Subtotal Payroll Tax 183457 183457 183457 Franchise Taxes Franchise Tax 41797 43297 -1500 41797 Subtotal Franchise Tax 41797 43297 -1500 41797 1680217 14800811 5728475 -9016003 1632369 14800811 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 <div><p><font style="font-family: arial, helvetica, sans-serif; font-size: 16pt;">1. None.</font></p> <p><font style="font-family: arial, helvetica, sans-serif; font-size: 16pt;">2. None.</font></p> <p><font style="font-family: arial, helvetica, sans-serif; font-size: 16pt;">3. None.</font></p> <p><font style="font-family: arial, helvetica, sans-serif; font-size: 16pt;">4. None.</font></p> <p><font style="font-family: arial, helvetica, sans-serif; font-size: 16pt;">5. None.</font></p> <p><font style="font-family: arial, helvetica, sans-serif; font-size: 16pt;">6. None.</font></p> <p><font style="font-family: arial, helvetica, sans-serif; font-size: 16pt;">7. None.</font></p> <p><font style="font-family: arial, helvetica, sans-serif; font-size: 16pt;">8. None.</font></p> <p><font style="font-family: arial, helvetica, sans-serif; font-size: 16pt;">9. See page 122.1, Notes to Financial Statements, Note 2 "Summary of Significant Accounting Policies."</font></p> <p><font style="font-family: arial, helvetica, sans-serif; font-size: 16pt;">10. None.</font></p> <p><font style="font-family: arial, helvetica, sans-serif; font-size: 16pt;">11. None.</font></p> <p><font style="font-family: arial, helvetica, sans-serif; font-size: 16pt;">12. Changes made during the year ended December 31, 2021:</font></p> <p><font style="font-family: arial, helvetica, sans-serif; font-size: 16pt;">Appointments:</font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif; font-size: 16pt;">Meli Armstrong - Vice President</font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif; font-size: 16pt;">Debbie Cone - Vice President</font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif; font-size: 16pt;">Tom Dender - Vice President</font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif; font-size: 16pt;">David Dewey - Vice President</font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif; font-size: 16pt;">Adam Forman - Vice President and Secretary</font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif; font-size: 16pt;">Christopher Graeter - Vice President and Treasurer</font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif; font-size: 16pt;">Kevin Grahmann - Vice President</font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif; font-size: 16pt;">Daniel G. Gredvig - Vice President</font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif; font-size: 16pt;">Kenneth Grubb - Vice President</font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif; font-size: 16pt;">Mark Huse - Vice President and Chief Information Officer</font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif; font-size: 16pt;">Catherine James - Vice President</font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif; font-size: 16pt;">Anders Johnson - Vice President</font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif; font-size: 16pt;">Denise Mathews - Vice President</font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif; font-size: 16pt;">David Michels - Vice President and Chief Financial Officer</font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif; font-size: 16pt;">Jordan Mintz - Vice President and Chief Tax Officer</font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif; font-size: 16pt;">William E. Morgan - Vice President, Operational Controller</font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif; font-size: 16pt;">Gene Nowak - Vice President</font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif; font-size: 16pt;">Ernesto Ochoa - Vice President</font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif; font-size: 16pt;">Rob Perkins - Vice President</font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif; font-size: 16pt;">C. Todd Piczak - Vice President and Chief Compliance Officer</font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif; font-size: 16pt;">Michael Pitta - Vice President</font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif; font-size: 16pt;">Christa Robbins - Vice President</font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif; font-size: 16pt;">Dayton Robertson - Vice President</font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif; font-size: 16pt;">Greg Ruben - Vice President</font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif; font-size: 16pt;">Corey Staab - Vice President</font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif; font-size: 16pt;">Jorge Torres - Vice President</font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif; font-size: 16pt;">Kimberly S. Watson - President</font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif; font-size: 16pt;">Matthew Wojtalewicz - Vice President and Controller</font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif; font-size: 16pt;">Bill Wolf - Vice President</font></p> <p><font style="font-family: arial, helvetica, sans-serif; font-size: 16pt;">Resignations:</font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif; font-size: 16pt;">Peter Carnavos - Vice President</font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif; font-size: 16pt;">Tom Dender - Vice President</font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif; font-size: 16pt;">Steven M. Dougherty - Vice President and Treasurer</font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif; font-size: 16pt;">Vanessa Franklin - Assistant Corporate Secretary</font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif; font-size: 16pt;">Daniel G. Gredvig - Vice President<br/></font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif; font-size: 16pt;">Benjamin Hansen - Vice President</font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif; font-size: 16pt;">Mark T. Mitchell - Senior Vice President</font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif; font-size: 16pt;">William H. Moore - President</font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif; font-size: 16pt;">Michael K. Post - Vice President and Corporate Secretary</font></p> <p><font style="font-size: 16pt;"><font style="font-family: arial, helvetica, sans-serif;">On July 8, 2021, Kinder Morgan Inc. acquired Stagecoach Pipeline &amp; Storage Company LLC and certain other assets from Stagecoach Gas Services LLC, a joint venture equally owned by a wholly-owned subsidiary of Crestwood Midstream Partners, LP and a wholly-owned subsidiary of Consolidated Edison, Inc.</font></font></p> <p><font style="font-family: arial, helvetica, sans-serif; font-size: 16pt;">See Page 122.1, Notes to Financial Statements, Note 1 "General" for additional information.</font></p> <p><font style="font-family: arial, helvetica, sans-serif; font-size: 16pt;">13. N/A.</font></p></div> 0 1464 254 45283 43819 0 1464 45283 43819 0 1464 45283 0 1102 34098 32996 0 362 11185 10823 2039850 1479676 3519526 2039850 1479676 3519526 1479676 1664214 1131107 2795321 375636 348569 724205 William E. Morgan Vice President, Operational Controller /s/ William E. Morgan 2022-04-27 2-A Stagecoach Pipeline & Storage Company LLC C001683 2021 Q4 1001 Louisiana Street, Suite 1000, Houston, TX 77002 James M. Brossett Director, Financial Reporting 2 North Nevada Avenue, Colorado Springs, CO 80903 719-520-4721 O 2021-12-31 Matthew J. Wojtalewicz Vice President and Controller 1001 Louisiana Street, Suite 1000, Houston, TX 77002 NY 2001-10-01 We are a New York limited liability company formed in 2001. <div><p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; line-height: normal;"><strong><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman'; color: black;">1. General</font></strong></p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"></p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"><em><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman'; color: black;">Organization</font></em></p> <p class="MsoNormal" style="text-align: justify; line-height: normal; margin: 0in 0in .0001pt .25in;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman'; color: black;">We are a New York limited liability company formed in 2001. When we refer to "us", "we", "our", "the Company", or "Stagecoach Pipeline" we are describing Stagecoach Pipeline &amp; Storage Company LLC. Stagecoach Pipeline is an indirect wholly-owned subsidiary of Kinder Morgan, Inc. (KMI) which, on July 8, 2021, acquired Stagecoach Pipeline and certain other assets from Stagecoach Gas Services LLC (Stagecoach Gas), a joint venture equally owned by a wholly-owned subsidiary of Crestwood Midstream Partners, LP (Crestwood Midstream) and a wholly-owned subsidiary of Consolidated Edison, Inc. (Consolidated Edison).</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman'; color: black;">For purposes of this report, references to Respondent mean Stagecoach Pipeline solely in its capacity as the owner and operator of the North-South and Marc I Projects (described below). The financial statements and results of operations reported herein for the Respondent relate exclusively to the North-South and Marc I Projects. References to Stagecoach Pipeline mean Stagecoach Pipeline in its capacity as a legal entity, thus capturing all of the company's assets and operations (including the North-South and Marc I Projects).</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal;"><em><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman'; color: black;">Description of Operations</font></em></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman'; color: black;">Stagecoach Pipeline owns natural gas storage and natural gas transportation facilities that are regulated by the Federal Energy Regulatory Commission (FERC). The Stagecoach natural gas storage facility was originally placed into service in 2001 and subsequently expanded, and provides storage services to customers under market-based rate authority granted by the FERC. The Stagecoach South Lateral is an approximate 21-mile 30" pipeline purchased in 2007 that connects the Stagecoach Central Compressor Station in Tioga County, New York to Tennessee Gas Pipeline's (TGP) 300 Line in Bradford County, Pennsylvania. The Stagecoach North Lateral is an approximate 10-mile 20" pipeline placed in service in 2008 that connects the Stagecoach Central Compressor Station to the Millennium Pipeline in Tioga County, New York. </font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman'; color: black;">The North-South Project consists of certain facilities used to provide firm wheeling services to shippers. The facilities include two compressor stations and related piping additions/modifications (known as the NS-1 and NS-2 Compressor Stations located in Tioga County, New York and Bradford County, Pennsylvania, respectively). The North-South facilities also include the Stagecoach Central Compressor Station and the North and South Laterals. The Respondent offers firm wheeling services through its North and South Laterals to/from TGP's 300 Line and the Millennium Pipeline and various points in between. Firm wheeling shippers are able to wheel gas on a firm basis up to their maximum daily firm wheeling quantity between primary contracted receipt and delivery points on the North and/or South Laterals and the Respondent derives revenues from the natural gas transportation services provided to its customers using the North-South Project facilities.</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman'; color: black;">The Marc I Project facilities consist of a 39-mile, 30-inch interstate natural gas pipeline that extends from the Respondent's Stagecoach South Lateral interconnect with TGP's 300 Line and Transcontinental Gas Pipeline Corporation's (Transco) Leidy Line.</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman'; color: black;">Stagecoach Pipeline provides natural gas storage services at market-based rates, and the Respondent provides firm wheeling services and firm transport services at negotiated rates (subject to cost-of-service recourse rates). See the basis of presentation below for important notes regarding the presentation of the financial statements.</font></p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"></p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"><strong><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">2. Summary of Significant Accounting Policies</font></strong></p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><em><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">Basis of Presentation</font></em></p> <p class="MsoNormal" style="margin-bottom: .0001pt; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"><font style="font-size: 16pt; font-family: Arial, sans-serif;">The Respondent's financial statements are prepared in accordance with the accounting requirements of the FERC as set forth in its applicable Uniform System of Accounts and published accounting releases, which is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America (GAAP). Additionally, certain current year amounts are classified differently than in the prior year.</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: 9.0pt 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: 9.0pt 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16pt; line-height: 107%; font-family: Arial, sans-serif;">The most significant differences between GAAP and the financial statements presented herein are: (i) the deferral of certain costs and revenues, (ii) the classification of certain accounts on the balance sheet and statement of income, and iii) the inclusion and classification of income taxes in a limited liability company's financial statements.</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: 9.0pt 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman'; color: black;">Management has evaluated subsequent events through April 27, 2022, the date the financial statements were available to be issued.</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman'; color: black;">The Respondent's financial statements are inclusive of only a portion of Stagecoach Pipeline's financial results, representing the results exclusively of the North-South and Marc I Projects. As such, these financial statements do not reflect the financial position and results of operations of Stagecoach Pipeline as a legal entity.</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal;"><font style="font-size: 16pt; line-height: 107%; font-family: Arial, sans-serif;">The Respondent has included the cost of service-based revenues (firm wheeling services, firm transportation services and interruptible transportation services) related to the North-South and Marc I Projects only; storage-related revenues are not included in the results of operations in these financial statements. Expenses are directly assigned to the cost-based transportation services whenever possible and expenses that are specifically unique to providing market-based storage services have been excluded for the periods presented. Where direct assignment of costs is not possible, costs are allocated to the Marc I facilities and the North-South Lateral facilities based on gross plant balances for each. The North-South Lateral allocation is further broken down between cost-based and market-based activities on the laterals based on the percentage of contract demand for cost-based services relative to total contract demand on the laterals. The expenses allocated to market-based activities and services as described above are excluded for the periods presented.</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal;"></p> <p class="MsoNormal" style="text-align: justify; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><em><font style="font-size: 16.0pt; line-height: 107%; font-family: 'Arial',sans-serif;">Coronavirus Diseases 2019 (COVID-19) </font></em></p> <p class="MsoNormal" style="text-align: justify; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; text-align: justify; line-height: normal;"><font style="font-size: 12.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman';"><font style="font-size: 16pt;">The COVID-19 pandemic resulted in reductions in energy demand and the dramatic decline in commodity prices in 2020. Sharp declines in the supply of and demand for energy related commodities due to the economic shutdown in the wake of the pandemic also affected the energy industry during 2020. The sustainability of the economic recovery observed in 2021 remains unclear as efforts to combat the virus have been complicated by new variants. Further, significant uncertainty remains regarding the duration and extent of the impact of the pandemic (including the pace and efficacy of vaccination efforts) on the energy industry, including demand and prices for hydrocarbons, and our ability to reasonably predict the potential impact of COVID-19 on our business and operations.</font></font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><em><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">Use of Estimates</font></em></p> <p class="MsoNormal" style="margin-bottom: .0001pt; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">Certain amounts included in or affecting our financial statements and related disclosures must be estimated, requiring us to make certain assumptions with respect to values or conditions which cannot be known with certainty at the time our financial statements are prepared. These estimates and assumptions affect the amounts we report for assets and liabilities, our revenues and expenses during the reporting period, and our disclosures, including those related to contingent assets and liabilities at the date of our financial statements. We evaluate these estimates on an ongoing basis, utilizing historical experience, consultation with experts and other methods we consider reasonable in the particular circumstances. Nevertheless, actual results may differ significantly from our estimates. Any effects on our business, financial position or results of operations resulting from revisions to these estimates are recorded in the period in which the facts that give rise to the revision become known.</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">Certain accounting policies are of more significance in our financial statement preparation process than others, and set out below are the principal accounting policies we apply in the preparation of our financial statements.</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><em><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">Cash Equivalents</font></em></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">We define cash equivalents as all highly liquid short-term investments with original maturities of three months or less. </font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"><em><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">Allowance for Credit Losses</font></em></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-indent: .5in; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">We evaluate our financial assets measured at amortized cost and off-balance sheet credit exposures for expected credit losses over the contractual term of the asset or exposure. We consider available information relevant to assessing the collectability of cash flows including the expected risk of credit loss even if that risk is remote. We measure expected credit losses on a collective (pool) basis when similar risk characteristics exist and we reflect the expected credit losses on the amortized cost basis of the financial asset as of the reporting date.</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; text-indent: .5in; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">Our financial instruments primarily consist of our accounts receivable from customers. We utilized historical analysis of credit losses experienced over the previous five years along with current conditions and reasonable and supportable forecasts of future conditions in our evaluation of collectability of our financial assets.</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; text-indent: .5in; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">Our allowance for credit losses is recorded in Account 144 "Accum. Provision for Uncollectible Accounts - Credit" on our balance sheets.</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><em><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">Property, Plant and Equipment</font></em></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">Our property, plant and equipment is recorded at its original cost of construction or, upon acquisition, at either the fair value of the assets acquired or the cost to the entity that first placed the asset in utility service. For constructed assets, we capitalize all construction-related direct labor and material costs, as well as indirect construction costs. Our indirect construction costs primarily include an interest and equity return component (as more fully described below) and labor and related costs associated with supporting construction activities. The indirect capitalized labor and related costs are based upon estimates of time spent supporting construction projects. We expense costs for routine maintenance and repairs in the period incurred.</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">We use the composite method to depreciate property, plant and equipment. Under this method, assets with similar economic characteristics are grouped and depreciated as one asset. The FERC-accepted depreciation rate is applied to the total cost of the group until the net book value equals the salvage value. For certain general plant, the asset is depreciated to zero. As part of periodic filings with the FERC, we also re-evaluate and receive approval for our depreciation rates. When property, plant and equipment is retired, accumulated depreciation and amortization is charged for the original cost of the assets in addition to the cost to remove, sell or dispose of the assets, less salvage value. We do not recognize gains or losses unless we sell land or an entire operating unit (as approved by the FERC). </font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">We capitalize a carrying cost (an allowance for funds used during construction or AFUDC) on debt and equity funds related to the construction of long-lived assets. This carrying cost consists of a return on the investment financed by debt and a return on the investment financed by equity. The debt portion is calculated based on our most recent FERC approved debt rate. Interest costs capitalized are included as a reduction to interest charges in Account 432 "Allowance for Borrowed Funds Used During Construction - Credit" on our income statements. The equity portion is calculated based on our most recent FERC approved rate of return. Equity amounts capitalized are included in Account 419.1 "Allowance for Other Funds Used During Construction" on our income statements. </font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><em><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">Asset Retirement Obligations (ARO)</font></em></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">We record liabilities for obligations related to the retirement and removal of long-lived assets used in our business. We record, as liabilities, the fair value of ARO on a discounted basis when they are incurred and can be reasonably estimated, which is typically at the time the assets are installed or acquired. Amounts recorded for the related assets are increased by the amount of these obligations. Over time, the liabilities increase due to the change in their present value, and the initial capitalized costs are depreciated over the useful lives of the related assets. The liabilities are eventually extinguished when the asset is taken out of service.</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">We are required to operate and maintain our natural gas pipeline system, and intend to do so as long as supply and demand for natural gas exists, which we expect for the foreseeable future. Therefore, we believe that we cannot reasonably estimate the ARO for the substantial majority of our assets because these assets have indeterminate lives. We continue to evaluate our ARO and future developments could impact the amounts we record. We had no ARO recorded as of December 31, 2021 and 2020.</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><em><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">Long-lived Asset Impairments</font></em></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">We evaluate our long-lived assets for impairment when events or changes in circumstances indicate that the carrying values may not be recoverable through the regulatory process. These events include changes in the manner in which we intend to use a long-lived asset, decisions to sell an asset and adverse changes in the legal or business environment such as adverse actions by regulators. If an event occurs and if an impairment is indicated, we adjust the carrying value of the asset downward, if necessary and upon regulatory approval, to its estimated recoverable value. </font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">There were no impairments for the years ended December 31, 2021 and 2020.</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><em><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">Revenue Recognition</font></em></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">We segregate each class of revenue by account pursuant to the FERC's guidance under Code of Federal Regulations Title 18, Part 201. </font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><em><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">Revenue from Contracts with Customers.</font></em><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;"> We review our contracts with customers using the following steps to recognize revenue based on the transfer of goods or services to customers and in amounts that reflect the consideration the company expects to receive for those goods or services. The steps include: (i) identify the contract; (ii) identify the performance obligations of the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and then (v) recognize revenue when (or as) the performance obligation is satisfied. Each of these steps involves management judgment and an analysis of the contract's material terms and conditions.</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">Our revenues are primarily generated from the transportation of natural gas under firm service customer contracts with take-or-pay elements (principally for capacity reservation) where both the price and quantity are fixed. Generally, for these contracts: (i) our promise is to transfer (or stand ready to transfer) a series of distinct integrated services over a period of time, which is a single performance obligation; (ii) the transaction price includes fixed and/or variable consideration which is determinable at contract inception and/or at each month end based on our right to invoice at month end for the value of services provided to the customer that month; and (iii) the transaction price is recognized as revenue over the service period specified in the contract as the services are rendered. In these arrangements, the customer is obligated to pay for services associated with its take-or-pay obligation regardless of whether or not the customer chooses to utilize the service in that period. Because we make the service continuously available over the service period, we recognize the take-or-pay amount as revenue ratably over the period based on the passage of time.</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">The natural gas we receive under our transportation contracts remains under the control of our customers. In many cases, generally described as firm service, the customer generally pays a two-part transaction price that includes (i) a fixed fee reserving the right to transport natural gas in our facilities up to contractually specified capacity levels (referred to as "reservation") and (ii) a fee-based per-unit rate for quantities of natural gas actually transported. In our firm service contracts we generally promise to provide a single integrated service each day over the life of the contract, which is fundamentally a stand-ready obligation to provide services up to the customer's reservation capacity prescribed in the contract. Our customers have a take-or-pay payment obligation with respect to the fixed reservation fee component, regardless of the quantities they actually transport. In other cases, generally described as interruptible service, there is no fixed fee associated with these transportation services because the customer accepts the possibility that service may be interrupted at our discretion in order to serve customers who have firm service contracts. We do not have an obligation to perform under interruptible customer arrangements until we accept and schedule the customer's request for periodic service. The customer pays a transaction price on a fee-based per-unit rate for the quantities actually transported.</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><em><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">Contract Balances. </font></em><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">Contract assets and contract liabilities are the result of timing differences between revenue recognition, billings and cash collections. As of December 31, 2021 and 2020, we had no contract assets or contract liabilities.</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><em><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">Major Customers.</font></em><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;"> During the year ended December 31, 2021, two customers represented approximately 41% of the Respondent's revenue. During the year ended December 31, 2020, three customers represented approximately 56% of the Respondent's revenue.</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><em><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">Legal Proceedings</font></em></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">We are party to various legal, regulatory and other matters arising from the day-to-day operations of our business that may result in claims against the Company. Although no assurance can be given, we believe, based on our experiences to date and taking into account established reserves, that the ultimate resolution of such items will not have a material adverse impact on our business. We believe we have meritorious defenses to the matters to which we are a party and intend to vigorously defend the Company. When we determine a loss is probable of occurring and is reasonably estimable, we accrue an undiscounted liability for such contingencies based on our best estimate using information available at that time. If the estimated loss is a range of potential outcomes and there is no better estimate within the range, we accrue the amount at the low end of the range. We disclose contingencies where an adverse outcome may be material, or in the judgment of management, we conclude the matter should otherwise be disclosed.</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">We had no accruals for any outstanding legal proceedings as of December 31, 2021 and 2020.</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><em><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">Environmental Matters</font></em></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">We capitalize or expense, as appropriate, environmental expenditures. We capitalize certain environmental expenditures required to obtain rights-of-way, regulatory approvals or permitting as part of the construction of facilities we use in our business operations. We accrue and expense environmental costs that relate to an existing condition caused by past operations, which do not contribute to current or future revenue generation. We generally do not discount environmental liabilities to a net present value, and we record environmental liabilities when environmental assessments and/or remedial efforts are probable and we can reasonably estimate the costs.</font><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">Generally, our accrual of these environmental liabilities coincides with either our completion of a feasibility study or our commitment to a formal plan of action. We recognize receivables for anticipated associated insurance recoveries when such recoveries are deemed to be probable.</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">We routinely conduct reviews of potential environmental issues and claims that could impact our assets or operations. These reviews assist us in identifying environmental issues and estimating the costs and timing of remediation efforts. We also routinely adjust our environmental liabilities to reflect changes in previous estimates. In making environmental liability estimations, we consider the material effect of environmental compliance, pending legal actions against us, and potential third-party liability claims we may have against others. Often, as the remediation evaluation and effort progresses, additional information is obtained, requiring revisions to estimated costs. These revisions are reflected in our income in the period in which they are reasonably determinable. </font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">We are subject to environmental cleanup and enforcement actions from time to time. In particular, the Comprehensive Environmental Response, Compensation and Liability Act generally imposes joint and several liability for cleanup and enforcement costs on current and predecessor owners and operators of a site, among others, without regard to fault or the legality of the original conduct, subject to the right of a liable party to establish a "reasonable basis" for apportionment of costs. Our operations are also subject to federal, state and local laws and regulations relating to protection of the environment. Although we believe our operations are in substantial compliance with applicable environmental laws and regulations, risks of additional costs and liabilities are inherent in our operations, and there can be no assurance that we will not incur significant costs and liabilities. Moreover, it is possible that other developments could result in substantial costs and liabilities to us, such as increasingly stringent environmental laws, regulations and enforcement policies under the terms of authority of those laws, and claims for damages to property or persons resulting from our operations. </font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">Although it is not possible to predict the ultimate outcomes, we believe that the resolution of the environmental matters, and other matters to which we are a party, will not have a material adverse effect on our business. We had no accruals for any outstanding environmental matters as of December 31, 2021 and 2020.</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><em><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">Regulatory Assets and Liabilities</font></em></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; text-indent: .5in; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">Regulatory assets and liabilities represent probable future revenues or expenses associated with certain charges and credits that are expected to be recovered from or returned to customers through the ratemaking process.</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><strong><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">3. Income Taxes</font></strong></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman'; color: black;">We are a limited liability company and are not subject to federal or state income taxes. However, our approved rates include an allowance for income taxes, calculated as if we were a taxable corporation, and the FERC requires that we reflect such taxes in our financial statements. </font><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">We record current income taxes based on our taxable income and we provide for deferred income taxes to reflect estimated future tax payments and receipts. Deferred taxes represent the tax impacts of differences between the financial statement and tax bases of assets and liabilities and carryovers at each year end. We reduce deferred tax assets by a valuation allowance when, based on our estimates, it is more likely than not that a portion of those assets will not be realized in a future period. The estimates utilized in the recognition of deferred tax assets are subject to revision, either up or down, in future periods based on new facts or circumstances. Income taxes charged to us are reflected in the accompanying comparative balance sheet in Account 236 "Taxes Accrued" and Accounts 190, 282, and 283 "Accumulated Deferred Income Taxes." A portion of the activity in Account 211 "Miscellaneous Paid-In Capital" reflects the income taxes assigned or advanced to our Member.</font><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman'; color: black;"> Prior to July 8, 2021, in accordance with FERC policy regarding income tax allowances for rate purposes, the accompanying financial statements include an allowance for income taxes based on the weighted average composite tax rate of Consolidated Edison (the parent company of Con Edison Gas Pipeline and Storage Northeast LLC, which owned a 50% interest in the joint venture parent of the Respondent). The composite tax rates of the unit holders of Crestwood Equity Partners (the parent company of Crestwood Midstream, which owned the other 50% interest in the joint venture parent of the Respondent) were not included in the calculation of income taxes in accordance with the FERC's revised policy on income taxes that disallows an entity organized as a Master Limited Partnership (MLP) from recovering an income tax allowance in its cost of service rates. The weighted average composite tax rate used to calculate income taxes was 13% for the period January 1, 2021 to July 8, 2021 and for the year ending December 31, 2020. KMI is a taxable C-corporation; therefore, effective with the July 8, 2021 acquisition of Stagecoach Pipeline by KMI, the allowance for income taxes is calculated on Respondent's total reported operations as if it was a taxable corporation. The allowance for current income taxes for the years ended December 31, 2021 and 2020 is settled as a part of distributions to Members.</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">The following table reflects the components of income tax expense included in net income (in millions): </font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; text-indent: .5in; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> <table class="MsoTableGrid" style="margin-left: 35.75pt; border-collapse: collapse; border: none; mso-border-alt: solid windowtext .5pt; mso-yfti-tbllook: 1184; mso-padding-alt: 0in 5.4pt 0in 5.4pt;" border="1" cellspacing="0" cellpadding="0"> <tr style="mso-yfti-irow: 0; mso-yfti-firstrow: yes;"> <td style="width: 589.5pt; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="399"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> </td> <td style="width: 328.5pt; border: solid windowtext 1.0pt; border-left: none; mso-border-left-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" colspan="2" valign="top" width="260"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: center; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;" align="center"><strong style="mso-bidi-font-weight: normal;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">Year Ended December 31,</font></strong></p> </td> </tr> <tr style="mso-yfti-irow: 1;"> <td style="width: 589.5pt; border: solid windowtext 1.0pt; border-top: none; mso-border-top-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="399"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> </td> <td style="width: 166.5pt; border-top: none; border-left: none; border-bottom: solid windowtext 4.5pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; mso-border-bottom-alt: solid windowtext 4.5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="131"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: center; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;" align="center"><strong style="mso-bidi-font-weight: normal;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">2021</font></strong></p> </td> <td style="width: 2.25in; border-top: none; border-left: none; border-bottom: solid windowtext 4.5pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; mso-border-bottom-alt: solid windowtext 4.5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="129"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: center; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;" align="center"><strong style="mso-bidi-font-weight: normal;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">2020</font></strong></p> </td> </tr> <tr style="mso-yfti-irow: 2;"> <td style="width: 589.5pt; border: solid windowtext 1.0pt; border-top: none; mso-border-top-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="399"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">Current:</font></p> </td> <td style="width: 166.5pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext 4.5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="131"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> </td> <td style="width: 2.25in; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext 4.5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="129"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> </td> </tr> <tr style="mso-yfti-irow: 3;"> <td style="width: 589.5pt; border: solid windowtext 1.0pt; border-top: none; mso-border-top-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="399"> <p class="MsoNormal" style="margin-bottom: 0.0001pt; line-height: normal; text-align: left; padding-left: 30px;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;"> Federal</font></p> </td> <td style="width: 166.5pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="131"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: right; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;" align="right"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">$ 6.4 </font></p> </td> <td style="width: 2.25in; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="129"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: right; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;" align="right"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">$ 4.1</font></p> </td> </tr> <tr style="mso-yfti-irow: 4;"> <td style="width: 589.5pt; border: solid windowtext 1.0pt; border-top: none; mso-border-top-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="399"> <p class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify; line-height: normal; padding-left: 30px;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;"> State</font></p> </td> <td style="width: 166.5pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.5pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; mso-border-bottom-alt: solid windowtext 1.5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="131"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: right; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;" align="right"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">2.6</font></p> </td> <td style="width: 2.25in; border-top: none; border-left: none; border-bottom: solid windowtext 1.5pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; mso-border-bottom-alt: solid windowtext 1.5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="129"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: right; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;" align="right"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">0.9</font></p> </td> </tr> <tr style="mso-yfti-irow: 5;"> <td style="width: 589.5pt; border: solid windowtext 1.0pt; border-top: none; mso-border-top-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="399"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> </td> <td style="width: 166.5pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.5pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: 1.5pt; mso-border-left-alt: .5pt; mso-border-bottom-alt: 1.5pt; mso-border-right-alt: .5pt; mso-border-color-alt: windowtext; mso-border-style-alt: solid; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="131"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: right; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;" align="right"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">9.0</font></p> </td> <td style="width: 2.25in; border-top: none; border-left: none; border-bottom: solid windowtext 1.5pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: 1.5pt; mso-border-left-alt: .5pt; mso-border-bottom-alt: 1.5pt; mso-border-right-alt: .5pt; mso-border-color-alt: windowtext; mso-border-style-alt: solid; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="129"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: right; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;" align="right"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">5.0</font></p> </td> </tr> <tr style="mso-yfti-irow: 6;"> <td style="width: 589.5pt; border: solid windowtext 1.0pt; border-top: none; mso-border-top-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="399"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> </td> <td style="width: 166.5pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext 1.5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="131"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> </td> <td style="width: 2.25in; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext 1.5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="129"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> </td> </tr> <tr style="mso-yfti-irow: 7;"> <td style="width: 589.5pt; border: solid windowtext 1.0pt; border-top: none; mso-border-top-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="399"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">Deferred:</font></p> </td> <td style="width: 166.5pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="131"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> </td> <td style="width: 2.25in; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="129"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> </td> </tr> <tr style="mso-yfti-irow: 8;"> <td style="width: 589.5pt; border: solid windowtext 1.0pt; border-top: none; mso-border-top-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="399"> <p class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify; line-height: normal; padding-left: 30px;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;"> Federal</font></p> </td> <td style="width: 166.5pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="131"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: right; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;" align="right"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">1.1</font></p> </td> <td style="width: 2.25in; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="129"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: right; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;" align="right"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">0.4</font></p> </td> </tr> <tr style="mso-yfti-irow: 9;"> <td style="width: 589.5pt; border: solid windowtext 1.0pt; border-top: none; mso-border-top-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="399"> <p class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify; line-height: normal; padding-left: 30px;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;"> State</font></p> </td> <td style="width: 166.5pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.5pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; mso-border-bottom-alt: solid windowtext 1.5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="131"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: right; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;" align="right"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">0.4</font></p> </td> <td style="width: 2.25in; border-top: none; border-left: none; border-bottom: solid windowtext 1.5pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; mso-border-bottom-alt: solid windowtext 1.5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="129"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: right; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;" align="right"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">0.1</font></p> </td> </tr> <tr style="mso-yfti-irow: 10;"> <td style="width: 589.5pt; border: solid windowtext 1.0pt; border-top: none; mso-border-top-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="399"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> </td> <td style="width: 166.5pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.5pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: 1.5pt; mso-border-left-alt: .5pt; mso-border-bottom-alt: 1.5pt; mso-border-right-alt: .5pt; mso-border-color-alt: windowtext; mso-border-style-alt: solid; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="131"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: right; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;" align="right"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">1.5</font></p> </td> <td style="width: 2.25in; border-top: none; border-left: none; border-bottom: solid windowtext 1.5pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: 1.5pt; mso-border-left-alt: .5pt; mso-border-bottom-alt: 1.5pt; mso-border-right-alt: .5pt; mso-border-color-alt: windowtext; mso-border-style-alt: solid; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="129"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: right; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;" align="right"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">0.5</font></p> </td> </tr> <tr style="mso-yfti-irow: 11; mso-yfti-lastrow: yes;"> <td style="width: 589.5pt; border: solid windowtext 1.0pt; border-top: none; mso-border-top-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="399"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">Total income tax expense</font></p> </td> <td style="width: 166.5pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.5pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: 1.5pt; mso-border-left-alt: .5pt; mso-border-bottom-alt: 1.5pt; mso-border-right-alt: .5pt; mso-border-color-alt: windowtext; mso-border-style-alt: solid; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="131"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: right; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;" align="right"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">$ 10.5</font></p> </td> <td style="width: 2.25in; border-top: none; border-left: none; border-bottom: solid windowtext 1.5pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: 1.5pt; mso-border-left-alt: .5pt; mso-border-bottom-alt: 1.5pt; mso-border-right-alt: .5pt; mso-border-color-alt: windowtext; mso-border-style-alt: solid; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="129"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: right; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;" align="right"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">$ 5.5</font></p> </td> </tr> </table> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">The differences between our actual income tax expense and the amount computed by applying the statutory federal income tax rate of 21% are summarized as follows (in millions):</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; text-indent: .5in; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> <table class="MsoTableGrid" style="margin-left: 35.75pt; border-collapse: collapse; border: none; mso-border-alt: solid windowtext .5pt; mso-yfti-tbllook: 1184; mso-padding-alt: 0in 5.4pt 0in 5.4pt;" border="1" cellspacing="0" cellpadding="0"> <tr style="mso-yfti-irow: 0; mso-yfti-firstrow: yes;"> <td style="width: 589.5pt; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="391"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> </td> <td style="width: 328.5pt; border: solid windowtext 1.0pt; border-left: none; mso-border-left-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" colspan="2" valign="top" width="268"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: center; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;" align="center"><strong style="mso-bidi-font-weight: normal;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">Year Ended December 31,</font></strong></p> </td> </tr> <tr style="mso-yfti-irow: 1;"> <td style="width: 589.5pt; border: solid windowtext 1.0pt; border-top: none; mso-border-top-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="391"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> </td> <td style="width: 166.5pt; border-top: none; border-left: none; border-bottom: solid windowtext 4.5pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; mso-border-bottom-alt: solid windowtext 4.5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="135"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: center; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;" align="center"><strong style="mso-bidi-font-weight: normal;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">2021</font></strong></p> </td> <td style="width: 2.25in; border-top: none; border-left: none; border-bottom: solid windowtext 4.5pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; mso-border-bottom-alt: solid windowtext 4.5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="133"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: center; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;" align="center"><strong style="mso-bidi-font-weight: normal;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">2020</font></strong></p> </td> </tr> <tr style="mso-yfti-irow: 2;"> <td style="width: 589.5pt; border: solid windowtext 1.0pt; border-top: none; mso-border-top-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="391"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">Income tax expense at the statutory federal rate</font></p> </td> <td style="width: 166.5pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext 4.5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="135"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: right; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;" align="right"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">$ 10.2</font></p> </td> <td style="width: 2.25in; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext 4.5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="133"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: right; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;" align="right"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">$ 8.9 </font></p> </td> </tr> <tr style="mso-yfti-irow: 3;"> <td style="width: 589.5pt; border: solid windowtext 1.0pt; border-top: none; mso-border-top-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="391"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">State income tax, net of federal income tax effect</font></p> </td> <td style="width: 166.5pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="135"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: right; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;" align="right"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">2.9</font></p> </td> <td style="width: 2.25in; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="133"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: right; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;" align="right"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">2.0</font></p> </td> </tr> <tr style="mso-yfti-irow: 4;"> <td style="width: 589.5pt; border: solid windowtext 1.0pt; border-top: none; mso-border-top-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="391"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">MLP Rate Differential</font></p> </td> <td style="width: 166.5pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="135"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: right; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;" align="right"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">(2.6)</font></p> </td> <td style="width: 2.25in; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="133"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: right; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;" align="right"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">(5.5)</font></p> </td> </tr> <tr style="mso-yfti-irow: 5;"> <td style="width: 589.5pt; border: solid windowtext 1.0pt; border-top: none; mso-border-top-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="391"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">Other</font></p> </td> <td style="width: 166.5pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.5pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; mso-border-bottom-alt: solid windowtext 1.5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="135"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: right; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;" align="right"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">-</font></p> </td> <td style="width: 2.25in; border-top: none; border-left: none; border-bottom: solid windowtext 1.5pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; mso-border-bottom-alt: solid windowtext 1.5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="133"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: right; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;" align="right"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">0.1</font></p> </td> </tr> <tr style="mso-yfti-irow: 6;"> <td style="width: 589.5pt; border: solid windowtext 1.0pt; border-top: none; mso-border-top-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="391"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">Total income tax expense</font></p> </td> <td style="width: 166.5pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.5pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: 1.5pt; mso-border-left-alt: .5pt; mso-border-bottom-alt: 1.5pt; mso-border-right-alt: .5pt; mso-border-color-alt: windowtext; mso-border-style-alt: solid; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="135"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: right; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;" align="right"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">$ 10.5</font></p> </td> <td style="width: 2.25in; border-top: none; border-left: none; border-bottom: solid windowtext 1.5pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: 1.5pt; mso-border-left-alt: .5pt; mso-border-bottom-alt: 1.5pt; mso-border-right-alt: .5pt; mso-border-color-alt: windowtext; mso-border-style-alt: solid; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="133"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: right; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;" align="right"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">$ 5.5 </font></p> </td> </tr> <tr style="mso-yfti-irow: 7; mso-yfti-lastrow: yes;"> <td style="width: 589.5pt; border: solid windowtext 1.0pt; border-top: none; mso-border-top-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="391"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">Effective Tax Rate</font></p> </td> <td style="width: 166.5pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.5pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: 1.5pt; mso-border-left-alt: .5pt; mso-border-bottom-alt: 1.5pt; mso-border-right-alt: .5pt; mso-border-color-alt: windowtext; mso-border-style-alt: solid; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="135"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: right; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;" align="right"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">21.6%</font></p> </td> <td style="width: 2.25in; border-top: none; border-left: none; border-bottom: solid windowtext 1.5pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: 1.5pt; mso-border-left-alt: .5pt; mso-border-bottom-alt: 1.5pt; mso-border-right-alt: .5pt; mso-border-color-alt: windowtext; mso-border-style-alt: solid; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="133"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: right; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;" align="right"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">12.9%</font></p> </td> </tr> </table> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; text-indent: .5in; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; text-indent: .5in; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">The following are the components of our net deferred tax liability (in millions):</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; text-indent: .5in; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> <table class="MsoTableGrid" style="margin-left: 35.75pt; border-collapse: collapse; border: none; mso-border-alt: solid windowtext .5pt; mso-yfti-tbllook: 1184; mso-padding-alt: 0in 5.4pt 0in 5.4pt;" border="1" cellspacing="0" cellpadding="0"> <tr style="mso-yfti-irow: 0; mso-yfti-firstrow: yes;"> <td style="width: 589.5pt; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="402"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> </td> <td style="width: 328.5pt; border: solid windowtext 1.0pt; border-left: none; mso-border-left-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" colspan="2" valign="top" width="257"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: center; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;" align="center"><strong style="mso-bidi-font-weight: normal;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">December 31,</font></strong></p> </td> </tr> <tr style="mso-yfti-irow: 1;"> <td style="width: 589.5pt; border: solid windowtext 1.0pt; border-top: none; mso-border-top-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="402"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> </td> <td style="width: 166.5pt; border-top: none; border-left: none; border-bottom: solid windowtext 4.5pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; mso-border-bottom-alt: solid windowtext 4.5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="130"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: center; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;" align="center"><strong style="mso-bidi-font-weight: normal;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">2021</font></strong></p> </td> <td style="width: 2.25in; border-top: none; border-left: none; border-bottom: solid windowtext 4.5pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; mso-border-bottom-alt: solid windowtext 4.5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="127"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: center; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;" align="center"><strong style="mso-bidi-font-weight: normal;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">2020</font></strong></p> </td> </tr> <tr style="mso-yfti-irow: 2;"> <td style="width: 589.5pt; border: solid windowtext 1.0pt; border-top: none; mso-border-top-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="402"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">Deferred tax liabilities:</font></p> </td> <td style="width: 166.5pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext 4.5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="130"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> </td> <td style="width: 2.25in; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext 4.5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="127"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> </td> </tr> <tr style="mso-yfti-irow: 3;"> <td style="width: 589.5pt; border: solid windowtext 1.0pt; border-top: none; mso-border-top-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="402"> <p class="MsoNormal" style="margin-bottom: 0.0001pt; line-height: normal; text-align: left; padding-left: 30px;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;"> Property, plant and equipment</font></p> </td> <td style="width: 166.5pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="130"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: right; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;" align="right"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">$ 3.5</font></p> </td> <td style="width: 2.25in; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="127"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: right; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;" align="right"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">$ 2.0</font></p> </td> </tr> <tr style="mso-yfti-irow: 4;"> <td style="width: 589.5pt; border: solid windowtext 1.0pt; border-top: none; mso-border-top-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="402"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;"> Total deferred tax liabilities</font></p> </td> <td style="width: 166.5pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.5pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: 1.5pt; mso-border-left-alt: .5pt; mso-border-bottom-alt: 1.5pt; mso-border-right-alt: .5pt; mso-border-color-alt: windowtext; mso-border-style-alt: solid; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="130"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: right; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;" align="right"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">3.5</font></p> </td> <td style="width: 2.25in; border-top: none; border-left: none; border-bottom: solid windowtext 1.5pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: 1.5pt; mso-border-left-alt: .5pt; mso-border-bottom-alt: 1.5pt; mso-border-right-alt: .5pt; mso-border-color-alt: windowtext; mso-border-style-alt: solid; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="127"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: right; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;" align="right"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">2.0</font></p> </td> </tr> <tr style="mso-yfti-irow: 5;"> <td style="width: 589.5pt; border: solid windowtext 1.0pt; border-top: none; mso-border-top-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="402"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> </td> <td style="width: 166.5pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext 1.5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="130"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> </td> <td style="width: 2.25in; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext 1.5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="127"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> </td> </tr> <tr style="mso-yfti-irow: 6;"> <td style="width: 589.5pt; border: solid windowtext 1.0pt; border-top: none; mso-border-top-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="402"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">Deferred tax assets:</font></p> </td> <td style="width: 166.5pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="130"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> </td> <td style="width: 2.25in; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="127"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> </td> </tr> <tr style="mso-yfti-irow: 7;"> <td style="width: 589.5pt; border: solid windowtext 1.0pt; border-top: none; mso-border-top-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="402"> <p class="MsoNormal" style="margin-bottom: 0.0001pt; line-height: normal; text-align: left; padding-left: 30px;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;"> Regulatory liability</font></p> </td> <td style="width: 166.5pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="130"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: right; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;" align="right"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">-</font></p> </td> <td style="width: 2.25in; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="127"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: right; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;" align="right"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">-</font></p> </td> </tr> <tr style="mso-yfti-irow: 8;"> <td style="width: 589.5pt; border: solid windowtext 1.0pt; border-top: none; mso-border-top-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="402"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> </td> <td style="width: 166.5pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.5pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: 1.5pt; mso-border-left-alt: .5pt; mso-border-bottom-alt: 1.5pt; mso-border-right-alt: .5pt; mso-border-color-alt: windowtext; mso-border-style-alt: solid; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="130"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> </td> <td style="width: 2.25in; border-top: none; border-left: none; border-bottom: solid windowtext 1.5pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: 1.5pt; mso-border-left-alt: .5pt; mso-border-bottom-alt: 1.5pt; mso-border-right-alt: .5pt; mso-border-color-alt: windowtext; mso-border-style-alt: solid; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="127"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> </td> </tr> <tr style="mso-yfti-irow: 9;"> <td style="width: 589.5pt; border: solid windowtext 1.0pt; border-top: none; mso-border-top-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="402"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">Net deferred tax liability</font></p> </td> <td style="width: 166.5pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.5pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: 1.5pt; mso-border-left-alt: .5pt; mso-border-bottom-alt: 1.5pt; mso-border-right-alt: .5pt; mso-border-color-alt: windowtext; mso-border-style-alt: solid; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="130"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: right; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;" align="right"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">$ 3.5</font></p> </td> <td style="width: 2.25in; border-top: none; border-left: none; border-bottom: solid windowtext 1.5pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: 1.5pt; mso-border-left-alt: .5pt; mso-border-bottom-alt: 1.5pt; mso-border-right-alt: .5pt; mso-border-color-alt: windowtext; mso-border-style-alt: solid; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="127"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: right; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;" align="right"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">$ 2.0</font></p> </td> </tr> <tr style="mso-yfti-irow: 10; mso-yfti-lastrow: yes;"> <td style="width: 589.5pt; border: none; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="402"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> </td> <td style="width: 166.5pt; border: none; mso-border-top-alt: solid windowtext 1.5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="130"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> </td> <td style="width: 2.25in; border: none; mso-border-top-alt: solid windowtext 1.5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="top" width="127"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> </td> </tr> </table> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal;"><strong><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman'; color: black;">4. Related Party Transactions</font></strong></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal;"></p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"><em><font style="font-size: 16pt; font-family: Arial, sans-serif;">Cash Management Program</font></em></p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"></p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"><font style="font-size: 16pt; font-family: Arial, sans-serif;">Through Stagecoach Pipeline's cash management agreement with KMI, Respondent participates in KMI's cash management program, which matches the short-term cash surpluses and needs of participating affiliates, thus minimizing total borrowings from outside sources. KMI uses the cash management program to settle intercompany transactions between participating affiliates. As of December 31, 2021 and 2020, Respondent had no balance with KMI or Stagecoach Pipeline under the cash management program.</font></p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"></p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"><em><font style="font-size: 16pt; font-family: Arial, sans-serif;">Affiliate Balances and Activities</font></em></p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"></p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"><font style="font-size: 16pt; font-family: Arial, sans-serif;">Pursuant to a management agreement in effect prior to July 8, 2021 between Crestwood Midstream Operations LLC, a wholly owned subsidiary of Crestwood Midstream, and Stagecoach Gas, Crestwood Midstream provided managerial, administrative and financial operations, and technical support services for the Respondent. Included in the statement of income is an allocation of corporate costs involved with providing these services. The corporate cost allocation for the period January 1, 2021 to July 7, 2021 and for the year ending December 31, 2020 was $2.4 million and $4.5 million, respectively. These costs are included in Account 401 "Operation Expenses" on our income statement.</font></p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal;"></p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"><font style="font-size: 16pt; font-family: Arial, sans-serif;">Subsequent to the July 8, 2021 acquisition, we are managed and operated by KMI, who provides services to us. Under KMI policies, we reimburse KMI at cost for direct and indirect costs incurred on our behalf and allocated general and administrative costs. For the period July 8, 2021 to December 31, 2021, Respondent's portion of these costs amounted to $2.0 million. These costs are included, as appropriate, in Account 401 "Operation Expenses" and Account 408.1 "Taxes Other Than Income Taxes" on our income statement.</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman'; color: black;">We have transportation agreements with Consolidated Edison which, prior to July 8, 2021 was an affiliate of Stagecoach Pipeline. The agreements provide for daily transportation rights of approximately 0.1 billion cubic feet. For the years ended December 31, 2021 and 2020, we recognized affiliate revenue of $3.0 million and $6.1 million, respectively, under these agreements.</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal;"><em><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman'; color: black;">Affiliate Balances and Activities</font></em></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal;"></p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman'; color: black;">The following table summarizes our other balance sheet affiliate balances (in millions):</font></p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"></p> <div align="center"> <table class="MsoNormalTable" style="border-collapse: collapse; border: none; mso-border-alt: solid windowtext .5pt; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-border-insideh: .5pt solid windowtext; mso-border-insidev: .5pt solid windowtext;" border="1" cellspacing="0" cellpadding="0"> <tr style="mso-yfti-irow: 0; mso-yfti-firstrow: yes; height: 30.0pt;"> <td style="border: solid windowtext 1.0pt; border-bottom: solid windowtext 4.5pt; mso-border-alt: solid windowtext .5pt; mso-border-bottom-alt: solid windowtext 4.5pt; padding: 0in 5.4pt 0in 5.4pt; height: 30.0pt;" rowspan="2"> <p class="MsoNormal" style="text-align: center; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;" align="center"><strong style="mso-bidi-font-weight: normal;"><font style="font-size: 16.0pt; line-height: 107%; font-family: 'Arial',sans-serif;">Account</font></strong></p> </td> <td style="width: 650.45pt; border: solid windowtext 1.0pt; border-left: none; mso-border-left-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; height: 30.0pt;" rowspan="2" valign="top" width="353"> <p class="MsoNormal" style="margin-right: 3.75pt; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 269.25pt 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in; mso-layout-grid-align: none; text-autospace: none;"></p> </td> <td style="width: 377.7pt; border: solid windowtext 1.0pt; border-left: none; mso-border-left-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; height: 30.0pt;" colspan="4" valign="bottom" width="254"> <p class="MsoNormal" style="text-align: center; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;" align="center"><strong style="mso-bidi-font-weight: normal;"><font style="font-size: 16.0pt; line-height: 107%; font-family: 'Arial',sans-serif;">December 31, </font></strong></p> </td> </tr> <tr style="mso-yfti-irow: 1; height: 30.0pt;"> <td style="width: 192.1pt; border-top: none; border-left: none; border-bottom: solid windowtext 4.5pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; mso-border-bottom-alt: solid windowtext 4.5pt; padding: 0in 5.4pt 0in 5.4pt; height: 30.0pt;" colspan="2" valign="bottom" width="128"> <p class="MsoNormal" style="text-align: center; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;" align="center"><strong style="mso-bidi-font-weight: normal;"><font style="font-size: 16.0pt; line-height: 107%; font-family: 'Arial',sans-serif;">2021</font></strong></p> </td> <td style="width: 185.6pt; border-top: none; border-left: none; border-bottom: solid windowtext 4.5pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; mso-border-bottom-alt: solid windowtext 4.5pt; padding: 0in 5.4pt 0in 5.4pt; height: 30.0pt;" colspan="2" valign="bottom" width="126"> <p class="MsoNormal" style="text-align: center; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;" align="center"><strong style="mso-bidi-font-weight: normal;"><font style="font-size: 16.0pt; line-height: 107%; font-family: 'Arial',sans-serif;">2020</font></strong></p> </td> </tr> <tr style="mso-yfti-irow: 2; mso-yfti-lastrow: yes;"> <td style="border: solid windowtext 1.0pt; border-top: none; mso-border-top-alt: solid windowtext 4.5pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="bottom"> <p class="MsoNormal" style="text-align: center; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;" align="center"><font style="font-size: 16.0pt; line-height: 107%; font-family: 'Arial',sans-serif;">146</font></p> </td> <td style="border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="bottom"> <p class="MsoNormal" style="margin-right: 3.75pt; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 269.25pt 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; line-height: 107%; font-family: 'Arial',sans-serif;">Accounts receivable from associated companies</font></p> </td> <td style="border: none; border-bottom: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext 4.5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-bottom-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="bottom"> <p class="MsoNormal" style="text-align: right; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;" align="right"><font style="font-size: 16.0pt; line-height: 107%; font-family: 'Arial',sans-serif;">$</font></p> </td> <td style="width: 166.8pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext 4.5pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="bottom" width="101"> <p class="MsoNormal" style="text-align: right; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;" align="right"><font style="font-size: 16.0pt; line-height: 107%; font-family: 'Arial',sans-serif;">0.1</font></p> </td> <td style="width: 25.3pt; border: none; border-bottom: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext 4.5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-bottom-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="bottom" width="29"> <p class="MsoNormal" style="text-align: right; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;" align="right"><font style="font-size: 16.0pt; line-height: 107%; font-family: 'Arial',sans-serif;">$</font></p> </td> <td style="width: 160.3pt; border-top: none; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: solid windowtext 1.0pt; mso-border-top-alt: solid windowtext 4.5pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt;" valign="bottom" width="98"> <p class="MsoNormal" style="text-align: right; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;" align="right"><font style="font-size: 16.0pt; line-height: 107%; font-family: 'Arial',sans-serif;">0.5</font></p> </td> </tr> <!-- [if !supportMisalignedColumns]--> <tr> <td style="border: none;" width="100"></td> <td style="border: none;" width="353"></td> <td style="border: none;" width="26"></td> <td style="border: none;" width="101"></td> <td style="border: none;" width="29"></td> <td style="border: none;" width="98"></td> </tr> <!--[endif]--> </table> </div> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"></p> <p class="MsoNormal" style="mso-margin-top-alt: auto; margin-bottom: .0001pt; text-align: justify; line-height: normal;"><em><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman'; color: black;">Other Affiliate Agreement</font></em></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'Times New Roman'; color: black;">KMI and substantially all of its wholly owned domestic subsidiaries, including us, are a party to a cross guarantee agreement whereby each party to the agreement unconditionally guarantees, jointly and severally, the payment of specified indebtedness of each other party to the agreement.</font></p></div> See Page 122.1, "Notes to Financial Statements," Note 1 "General" for a description of our ownership structure. Amounts charged are based on Kinder Morgan, Inc.'s other compensation and benefit expenses and are allocated to us based on the distribution of direct labor charges (excluding overtime and special pay). Amounts charged by Kinder Morgan, Inc. through shared services are allocated using the modified Massachusetts Formula. Recorded pursuant to Docket No. AI93-5-000 issued on April 23, 1993 (Accounting for Income Taxes). Account Amount 107 $ 7,250 408.1 86,112 850 78,585 853 446,989 857 25,191 864 97,217 920 331,467 Total $ 1,072,811 Account Amount 107 $ 845 926 173,975 Total $ 174,820 Account Amount 408.1 $ 26,028 920 340,562 923 56,433 925 64,164 926 64,620 930.2 85,167 931 65,187 Total $ 702,161 Transferred to Account 211 "Miscellaneous Paid-in Capital." As of December 31, 2021, we estimate that the following deferred tax balance in Account 282 could be used in the development of jurisdictional recourse rates: Property, Plant and Equipment $ 3,519,526 As of December 31, 2021, we estimate that the following deferred tax balance in Account 190 could be used in the development of jurisdictional recourse rates: Regulatory Liability - Deferred Income Tax Adjustment $ 43,765 As of December 31, 2020, we estimate that the following deferred tax balance in Account 282 could be used in the development of jurisdictional recourse rates: Property, Plant and Equipment $ 2,039,850