C001683 2022-01-01 2022-12-31 C001683 2022-12-31 C001683 2021-01-01 2021-12-31 C001683 2021-12-31 C001683 2020-12-31 C001683 2022-10-01 2022-10-31 C001683 2022-11-01 2022-11-30 C001683 2022-12-01 2022-12-31 C001683 2 2022-01-01 2022-12-31 C001683 5 2022-01-01 2022-12-31 C001683 8 2022-01-01 2022-12-31 C001683 11 2022-01-01 2022-12-31 C001683 ferc:GasUtilityMember 2021-12-31 C001683 ferc:GasUtilityMember 2022-01-01 2022-12-31 C001683 ferc:GasUtilityMember 2022-12-31 C001683 ferc:OperatingUtilityMember 2021-12-31 C001683 ferc:OperatingUtilityMember 2022-01-01 2022-12-31 C001683 ferc:OperatingUtilityMember 2022-12-31 C001683 ScheduleCorporationsControlledByRespondentAbstract 2022-01-01 2022-12-31 C001683 ScheduleGasPropertyAndCapacityLeasedToOthersAbstract 2022-01-01 2022-12-31 C001683 ScheduleGasPlantHeldForFutureUseAbstract 2022-01-01 2022-12-31 C001683 ScheduleNonTraditionalRateTreatmentAffordedNewProjectsAbstract 2022-01-01 2022-12-31 C001683 ScheduleGasStoredAbstract 2022-01-01 2022-12-31 C001683 ScheduleInvestmentsAbstract 2022-01-01 2022-12-31 C001683 ScheduleInvestmentsInSubsidiaryCompaniesAbstract 2022-01-01 2022-12-31 C001683 ScheduleExtraordinaryPropertyLossesAbstract 2022-01-01 2022-12-31 C001683 ScheduleUnrecoveredPlantAndRegulatoryStudyCostsAbstract 2022-01-01 2022-12-31 C001683 ScheduleCapitalStockAbstract 2022-01-01 2022-12-31 C001683 ScheduleCapitalStockSubscribedLiabilityForConversionPremiumOnAndInstallmentsReceivedOnAbstract 2022-01-01 2022-12-31 C001683 ScheduleDiscountOnCapitalStockAbstract 2022-01-01 2022-12-31 C001683 ScheduleCapitalStockExpenseAbstract 2022-01-01 2022-12-31 C001683 ScheduleSecuritiesIssuedOrAssumedAndSecuritiesRefundedOrRetiredDuringTheYearAbstract 2022-01-01 2022-12-31 C001683 ScheduleLongTermDebtAbstract 2022-01-01 2022-12-31 C001683 ScheduleUnamortizedDebtExpensePremiumAndDiscountOnLongTermDebtAbstract 2022-01-01 2022-12-31 C001683 ScheduleUnamortizedLossAndGainOnReacquiredDebtAbstract 2022-01-01 2022-12-31 C001683 ScheduleOtherDeferredCreditsAbstract 2022-01-01 2022-12-31 C001683 ScheduleAccumulatedDeferredIncomeTaxesOtherAbstract 2022-01-01 2022-12-31 C001683 ScheduleRevenuesFromTransporationOfGasOfOthersThroughGatheringFacilitiesAbstract 2022-01-01 2022-12-31 C001683 ScheduleRevenuesFromStoringGasOfOthersAbstract 2022-01-01 2022-12-31 C001683 ScheduleGasStorageProjectsAbstract 2022-01-01 2022-12-31 C001683 ScheduleGasStorageProjectsByCapacitiesAbstract 2022-01-01 2022-12-31 C001683 ScheduleAuxiliaryPeakingFacilitiesAbstract 2022-01-01 2022-12-31 C001683 1 2022-01-01 2022-12-31 C001683 1 2021-12-31 C001683 1 2022-12-31 C001683 1 2022-01-01 2022-12-31 C001683 1 2022-12-31 C001683 2 2022-01-01 2022-12-31 C001683 2 2022-12-31 C001683 3 2022-01-01 2022-12-31 C001683 3 2022-12-31 C001683 4 2022-01-01 2022-12-31 C001683 4 2022-12-31 C001683 5 2022-01-01 2022-12-31 C001683 5 2022-12-31 C001683 ferc:GasPlantInServiceMember ferc:GasUtilityMember 2021-12-31 C001683 ferc:GasPlantInServiceMember 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ferc:RecourseRateMember 2022-12-01 2022-12-31 C001683 ferc:DebitedMember 2022-12-01 2022-12-31 C001683 ferc:CreditedMember 2022-12-01 2022-12-31 C001683 44 2022-12-01 2022-12-31 C001683 49 2022-12-01 2022-12-31 C001683 Stagecoach Pipeline & Storage Company LLC 2022-01-01 2022-12-31 C001683 Stagecoach Pipeline & Storage Company LLC 2022-10-01 2022-12-31 C001683 16 Stagecoach Pipeline & Storage Company LLC 2022-01-01 2022-12-31 C001683 16 Stagecoach Pipeline & Storage Company LLC 2022-10-01 2022-12-31 C001683 17 Stagecoach Pipeline & Storage Company LLC 2022-01-01 2022-12-31 C001683 17 Stagecoach Pipeline & Storage Company LLC 2022-10-01 2022-12-31 C001683 32 Stagecoach Pipeline & Storage Company LLC 2022-01-01 2022-12-31 C001683 32 Stagecoach Pipeline & Storage Company LLC 2022-10-01 2022-12-31 C001683 33 Stagecoach Pipeline & Storage Company LLC 2022-01-01 2022-12-31 C001683 33 Stagecoach Pipeline & Storage Company LLC 2022-10-01 2022-12-31 C001683 34 Stagecoach Pipeline & Storage Company LLC 2022-01-01 2022-12-31 C001683 34 Stagecoach Pipeline & Storage Company LLC 2022-10-01 2022-12-31 C001683 35 Stagecoach Pipeline & Storage Company LLC 2022-01-01 2022-12-31 C001683 35 Stagecoach Pipeline & Storage Company LLC 2022-10-01 2022-12-31 C001683 ferc:DiscountedRateMember 2022-10-01 2022-10-31 C001683 ferc:NegotiatedRateMember 2022-10-01 2022-10-31 C001683 ferc:RecourseRateMember 2022-10-01 2022-10-31 C001683 ferc:DebitedMember 2022-10-01 2022-10-31 C001683 ferc:CreditedMember 2022-10-01 2022-10-31 C001683 44 2022-10-01 2022-10-31 C001683 ferc:DiscountedRateMember 2022-11-01 2022-11-30 C001683 ferc:NegotiatedRateMember 2022-11-01 2022-11-30 C001683 ferc:RecourseRateMember 2022-11-01 2022-11-30 C001683 ferc:DebitedMember 2022-11-01 2022-11-30 C001683 ferc:CreditedMember 2022-11-01 2022-11-30 C001683 44 2022-11-01 2022-11-30 C001683 49 2022-11-01 2022-11-30 C001683 1 2022-01-01 2022-12-31 C001683 2 2022-01-01 2022-12-31 C001683 3 2022-01-01 2022-12-31 C001683 4 2022-01-01 2022-12-31 C001683 5 2022-01-01 2022-12-31 C001683 15 2022-01-01 2022-12-31 C001683 12 2022-01-01 2022-12-31 C001683 18 2022-01-01 2022-12-31 C001683 26 2022-01-01 2022-12-31 C001683 27 2022-01-01 2022-12-31 C001683 12 2022-01-01 2022-12-31 C001683 36 Stagecoach Pipeline & Storage Company LLC 2022-01-01 2022-12-31 C001683 36 Stagecoach Pipeline & Storage Company LLC 2022-10-01 2022-12-31 C001683 3 2022-01-01 2022-12-31 C001683 1 2022-01-01 2022-12-31 C001683 1 2022-01-01 2022-12-31 C001683 37 Stagecoach Pipeline & Storage Company LLC 2022-01-01 2022-12-31 C001683 37 Stagecoach Pipeline & Storage Company LLC 2022-10-01 2022-12-31 xbrli:pure utr:kWh utr:mi utr:MW iso4217:USD utr:dth 2 5 8 11 Kinder Morgan, Inc. M DE 1.00 Kinder Morgan GP LLC I DE 0.0242 Kinder Morgan Energy Partners, L.P. I DE 1.00 Kinder Morgan Operating LLC "A" I DE 1.00 Stagecoach Gas Services LLC D DE 1.00 1 2 3 4 5 0 William E. Morgan Vice President, Operational Controller /s/ William E. Morgan 2023-04-12 2 Stagecoach Pipeline & Storage Company LLC C001683 2022 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 2022-12-31 544698318 544698318 544698318 544698318 26014 26014 544724332 544724332 270774901 270774901 273949431 273949431 270774901 270774901 270774901 270774901 21292298 21292298 25999 25999 21318297 21318297 Miscellaneous Construction Projects Under $1,000,000 26014 67562 67562 1 Other (less than $250,000) 866404 866404 1 50011 Health and life insurance 224149 Long-term disability insurance 5464 401K Employer contributions 89980 Other -11928 357676 6 7 8 9 388784 388784 1384063 1384063 1772847 1772847 195091 195091 195091 195091 583875 583875 1384063 1384063 1967938 1967938 1967938 1967938 17877 17877 17877 17877 Account 186 12422 12422 12422 12422 1998237 1998237 74 Matthew J. Wojtalewicz Vice President and Controller 1001 Louisiana Street, Suite 1000, Houston, TX 77002 true false We are a New York limited liability company formed in 2001. 2001-10-01 Respondent was primarily engaged in the transmission of natural gas in the following states: New York, Pennsylvania. false 43819 2214 357 41962 43819 2214 357 41962 43819 2214 357 41962 32996 2214 30782 10823 357 11180 Deferred Income Tax Rate Adjustment (amortized through May 2036) 156928 411.1 10992 145936 156928 10992 145936 1 Other (less than $250,000) 1172 1172 1 3 5 7 9 10 12 14 16 532353 0.0400 650 0.0400 Intangible Plant (footnote details) Other Gas Storage (footnote details) 9 10 1 <div><p class="MsoNormal" style="margin-bottom: .0001pt; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">1. Construction Overhead</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">(a) Overhead charges are intended to cover those indirect costs pertaining to construction activities for departments such as engineering, operations and accounting for their labor and related employee benefits and office space. The overhead amount capitalized is charged to all construction projects by applying a construction overhead clearing rate to direct project costs.</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">(b) The overhead capitalized is primarily based on periodic studies to identify indirect capital costs that are not charged directly to construction projects.</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">(c) Costs are accumulated in a blanket overhead project and distributed monthly to individual construction projects.</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">(d) Different overhead rates are applied based on the nature of the construction project.</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">(e) The basis for the differentiation in overhead rates stems from the economies of scale that are achieved with these projects.</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">(f) Overheads are directly assigned to each project.</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">2. Allowance for Funds Used During Construction</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">Allowance for funds used during construction is calculated below.</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">3. Net-of-Tax rate for borrowed funds</font></p> <p class="MsoNormal"><font style="font-size: 16.0pt; line-height: 107%; font-family: 'Arial',sans-serif;">Not Applicable</font></p></div> 301143048 Stagecoach Pipeline & Storage Company LLC 301143048 7034 0.00 0.0469 0.00 MARC 1 South, PA Transmission Compressor Stations 2 14315 83369725 107833 439793 PT52H 2 2022-07-27 North South Pipeline, PA Transmission Compressor Stations 2 30388 38585984 18375 2700162 618681 4211 46346556 PT8727H 1 2022-07-16 North South Pipeline, NY Transmission Compressor Stations 1 13410 128315051 48799 252431 335868 11382 47212517 PT8328H 1 2022-12-21 Subtotal Transmission Compressor Stations 5 58113 250270760 67174 3060426 1394342 15593 93559073 PT17107H 4 250270760 1 2 3 4 FERC Annual Charge Adjustment 12 months ending September 30 Pursuant to 18 CFR 154.402 (a) and 18 CFR 382.202 554197 1070756 928 821886 803067 554197 1070756 821886 803067 1 Millennium Pipeline Company - Receipt - Pennsylvania, Delivery - New York 990043 3844103 990043 3844103 1 FTS 14239636 15700 2998055 3013755 10912590 21360 3129276 3150636 5180924 16369 2931748 2948117 FTS-2 32667308 37856 7743667 7781523 31141029 48984 6338564 6387548 38523098 46759 7504428 7551187 FWS 4805132 4199 890873 895072 6479780 5895 899187 905082 8439490 8299 1318519 1326818 ITS 987000 1439 59965 61404 910000 1481 49350 50831 800000 1365 45500 46865 ITS-2 4908 100044 7 491 498 35093 35 24330 24365 FSS 37709 37709 37709 37709 37709 37709 ESTIMATE 18482 113063 131545 -6609 -501 -7110 4832 -1385385 -1380553 52703984 77676 11843332 11921008 49543443 71118 10454076 10525194 52978605 77659 10476849 10554508 1 2 3 4 5 6 7 2022-12-14 1371232 145695 1516927 118100 118100 Park and Loan Activity 58058 58058 Balancing Agreements 119561 103 119664 1666951 145798 1812749 2022-07-14 3738280 487144 4225424 470446 470446 Park and Loan Activity 384968 384968 Balancing Agreements 289652 -23597 266055 Authorized Overrun -4010 -4010 4879336 463547 5342883 11695020 11695020 80024047 58327 80082374 282042908 282042908 170174787 59573 45974 170188386 38797 854 39651 543975559 118754 45974 544048339 117464 117464 500159 500159 32356 32356 649979 649979 649979 649979 544625538 118754 45974 544698318 544625538 118754 45974 544698318 249502578 249502578 21318297 21318297 21318297 21318297 45974 45974 45974 45974 270774901 270774901 270545956 270545956 228945 228945 7 7 <div><p class="MsoNormal" style="margin-bottom: .0001pt; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">1. None.</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">2. None.</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">3. None.</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">4. None.</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">5. None.</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">6. None.</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">7. None.</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">8. None.</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">9. See page 122.1, Notes to Financial Statements, Note 2 "Summary of Significant Accounting Policies."</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">10. None.</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">11. </font><font style="font-family: Arial, sans-serif; font-size: 21.3333px;">See page 122.1, Notes to Financial Statements, Note 6 "Rate and Regulatory Matters."</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">12. Changes made during the year ended December 31, 2022:</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">Appointments:</font></p> <p class="MsoNormal" style="margin-bottom: 0.0001pt; line-height: normal; padding-left: 30px;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">Gina Mabry - Vice President</font></p> <p class="MsoNormal" style="margin-bottom: 0.0001pt; line-height: normal; padding-left: 30px;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">Thomas P. Otjen - Vice President</font></p> <p class="MsoNormal" style="margin-bottom: 0.0001pt; line-height: normal; padding-left: 30px;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">Vicki A. Phillips - Vice President</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">Resignations:</font></p> <p class="MsoNormal" style="margin-bottom: 0.0001pt; line-height: normal; padding-left: 30px;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">Meli Armstrong - Vice President</font></p> <p class="MsoNormal" style="margin-bottom: 0.0001pt; line-height: normal; padding-left: 30px;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">Gene Nowak - Vice President</font></p> <p class="MsoNormal" style="margin-bottom: 0.0001pt; line-height: normal; padding-left: 30px;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif;">Greg Ruben - Vice President</font></p> <p class="MsoNormal" style="padding-left: 30px;"><font style="font-size: 16.0pt; line-height: 107%; font-family: 'Arial',sans-serif;">Jorge Torres - Vice President</font></p> <p class="MsoNormal"><font style="font-size: 16.0pt; line-height: 107%; font-family: 'Arial',sans-serif;">13. N/A.</font></p></div> New York NY Fully Owned and Operated by Respondent 23.1 Pennsylvania PA Fully Owned and Operated by Respondent 64.0 87.1 87.1 1 2 3 4 5 6 7 5298 1240 Shared Service Allocations 263392 269930 6 Federal Energy Regulatory Commission Docket No. RM-87-3-2022 1070756 1070756 1070756 182.3 267689 803067 Federal Energy Regulatory Commission Docket No. RM-87-3-2021 738929 738929 554197 182.3 554197 FSS allocation -16084 -16084 1809685 1809685 554197 1054672 805802 803067 1 2 3 NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA Not Prepared 0 0 1 Advance of Deferred Income Taxes to Member 1166565 1956528 3123093 135967 1166565 1956528 3259060 1 44750 26264 49365 120379 178642 104846 197065 480553 6567 6567 26215 26215 44750 26264 55932 126946 178642 104846 223280 506768 68 40 75 183 271 160 299 730 854 810 486 486 1940 1940 819 810 68 40 561 669 271 160 2239 2670 158 93 174 425 631 371 695 1697 119 70 131 320 475 279 523 1277 Various 812 277 163 305 745 1106 650 1218 2974 14645 8595 16156 39396 58463 34311 64495 157269 813 812 14645 8595 16156 39396 58463 34311 64495 157269 29760 17466 32829 80055 118802 69725 131053 319580 6081 6081 24275 24275 29760 17466 38910 86136 118802 69725 155328 343855 29760 17466 38910 86136 118802 69725 155328 343855 174 806 Other Dispositions 29760 17466 38910 86136 118802 69725 155328 343855 Gas due from shippers 19018 86960 46169 152147 89265 408164 216703 714132 3088 3088 14494 14494 19018 86960 49257 155235 89265 408164 231197 728626 1 2 1 4 5 9 5 19 854 810 516 516 2422 2422 819 810 1 2 517 520 5 9 2427 2441 21 94 50 165 99 441 235 775 59 263 140 462 277 1234 657 2168 Various 812 80 357 190 627 376 1675 892 2943 11249 51439 27310 89998 52799 241439 128185 422423 813 812 11249 51439 27310 89998 52799 241439 128185 422423 7688 35162 18668 61518 36085 165041 87621 288747 2572 2572 12072 12072 7688 35162 21240 64090 36085 165041 99693 300819 7688 35162 21240 64090 36085 165041 99693 300819 174 806 Other Dispositions 7688 35162 21240 64090 36085 165041 99693 300819 Gas due from shippers 52029 27578 50582 130189 234594 124346 228069 587009 See Footnote 9973 9973 44967 44967 52029 27578 60555 140162 234594 124346 273036 631976 950 504 924 2378 4283 2272 4166 10721 100 53 97 250 451 239 437 1127 Various 812 1050 557 1021 2628 4734 2511 4603 11848 -3484 -1846 -3386 -8716 -15709 -8323 -15267 -39299 812 813 -3484 -1846 -3386 -8716 -15709 -8323 -15267 -39299 54463 28867 52947 136277 245569 130158 238733 614460 9973 9973 44967 44967 54463 28867 62920 146250 245569 130158 283700 659427 54463 28867 62920 146250 245569 130158 283700 659427 174 806 Other Dispositions 54463 28867 62920 146250 245569 130158 283700 659427 278068104 301143048 278068104 301143048 493207 773943 18389 7875 174936 8485 2755500 742079 3431518 1542896 8029281 3165056 3519526 11340273 3676454 292839895 306362398 38040770 38040770 72833206 72833206 Change in prepayments 66537 481530 Current income taxes 27321582 9016003 27388119 9497533 1 2 Change in customer advances for construction -8029281 -8029281 1 Distributions to Member 127495401 69361698 127495401 69361698 1 1649620 1649620 Transfer from Account 216 72833206 Transfer from Account 236 27321582 Transfer from Account 186 1956528 Distributions to Member -127495401 Adjust Deferred Tax Balances Pursuant to Docket No. AC23-1-000 2309141 -23074944 1 2 3 4 5 2160907 2595622 4756529 175118 67174 7109953 7177127 6110235 3864755 3864755 79589 64235 148138 576179 751129 67174 4812096 5920227 372411 269904 84545 35334 2003962 53816 169364 9148 111074 7045001 9473367 85393 181090 61628 531016 636396 3966 3412 91368 716072 878197 7761073 10351564 345 194 345 194 1384063 3045406 26496 98190 1019245 916106 243829 126941 197601 536770 238595 805802 597801 88160 179936 76707 4484578 5724676 4484578 5724676 16110751 16076434 19494615 Federal Income Tax 543963 State Deferred Income Tax 21318297 Book Depreciation and Amortization 345 Bad Debt Accrual 1172 Non-deductible Lobbying Expense 41358392 28012023 Tax Depreciation and Amortization 28012023 86179575 18097710 21% of Taxable Income -4668 Return to Provision/Other 18093042 Federal Income Tax - Current 5 8 9 10 11 12 15 18 22 23 24 25 26 27 301143048 278068104 0 0 72833206 38040770 0 Distributions of Earnings to Member 211 -72833206 -38040770 1 145552667 91130248 145552667 91130248 15394679 15198237 15394679 15198237 716072 878197 716072 878197 21318297 20740373 21318297 20740373 5828629 5774823 5828629 5774823 18093042 6446867 18093042 6446867 9422364 2579121 9422364 2579121 1956885 1481140 1956885 1481140 11349 9367 11349 9367 72718619 53089391 72718619 53089391 72834048 38040857 72834048 38040857 1172 -1172 87 330 -330 87 72833206 38040770 544698318 544625538 60324 544685862 249502578 295183284 273949431 295183284 10369747 7622065 539 194 76505 66665 1716157 2700882 14786375 9414533 4104089 1764581 292839895 306362398 Transportation and Exchange Imbalance Payable 2129001 Electric Compression Power Accrual 626499 1 2 387500 2646625 2646625 1587 1587 1184 1184 161409 161409 665947 665947 495752 495752 161409 161409 665947 665947 495752 495752 53091484 77676 14651366 14729042 49543443 71118 11121610 11192728 52978605 77659 10973785 11051444 4709475 1558733 4709475 1558733 697238 477518 3207 3207 805222 137192812 89571515 137998034 89571515 636096885 647348976 2841951 2841951 805222 144747445 91130248 145552667 91130248 805222 144747445 91130248 2595748 Cash Out Sales 246203 2841951 12 Federal Income Tax Federal Tax 18093042 -18093042 18093042 Subtotal Federal Tax 18093042 -18093042 18093042 State Income Tax - New York State Tax New York 846657 -846657 846657 0.0089 State Income Tax - Pennsylvania State Tax Pennsylvania 8381883 -8381883 8381883 0.0877 Texas Margin Tax State Tax Texas 2021 9985 18888 28873 18888 Texas Margin Tax State Tax Texas 2022 174936 174936 174936 Subtotal State Tax 9985 9422364 28873 -9228540 174936 9422364 Ad Valorem Tax - New York Ad Valorem Tax New York 2022 1632369 5676500 5692251 1648120 5676500 Ad Valorem Tax - Pennsylvania Ad Valorem Tax Pennsylvania 2022 47342 47342 47342 Subtotal Ad Valorem Tax 1632369 5723842 5739593 1648120 5723842 Use Tax - New York Sales And Use Tax New York 2022 2950 2950 2950 Use Tax - Pennsylvania Sales And Use Tax Pennsylvania 2022 187 187 187 Subtotal Sales And Use Tax 3137 3137 3137 Payroll - FICA Tax Payroll Tax Federal 2022 140340 140340 140340 Payroll - Unemployment Tax Payroll Tax Federal 2022 3392 3392 3392 Subtotal Payroll Tax 143732 143732 143732 Franchise Tax Franchise Tax 2022 -1500 -42082 -42082 1500 -42082 Subtotal Franchise Tax -1500 -42082 -42082 1500 -42082 1632369 33344035 5873253 -27321582 33344035 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 FERC Form 2 Stagecoach System Map 2023.pdf See system map attached. 1 M1/M1 FTS-2 483124 85189868 38831163 85672992 38831163 395849347 M1/M1 ITS-2 1063 122273 2137399 123336 2137399 1161002 NS/NSL FTS 212673 36708130 37634223 36920803 37634223 160395972 NS/NSL FWS 67558 11184532 11227880 11252090 11227880 63966815 NS/NSL ITS 19428 809359 812962 828787 812962 14723573 NS/NSL IWS 1 17 1830 18 1830 176 SM/SM FSS 301672 221738 301672 221738 ESTIMATE 21375 2876961 -1295680 2898336 -1295680 647348976 1 2 3 4 5 6 7 8 9 21318297 20740373 1945536 1471773 5371714 228597 66665 1799125 480283 248870 554197 119597034 69447938 130914 144240 -7898367 144240 58000 7898367 -86240 -127495401 -69361698 3519526 1954671 211 2309141 3165056 3519526 1954671 2309141 3165056 1954671 2309141 2795321 1410351 1883915 2321757 724205 544320 425226 843299 M1/M1 80191 119184 NS/NSL 568708 492326 SM/SM 4338014 553556 System Inventory 3864233 232054 4513132 611510 4338014 785610 1 2 3 4 854 15593 812 Gas Used for Other Utility Operations - Credit Gas Used - Unaccounted For 813 1182327 7102527 Gas Used - Other Fuel Compressor Stations 855 926 2755 Gas Used - Mains Operations 856 30 156 Gas Used - Maintenance of Mains 863 844 4515 1199720 5 6 7 8 9 Directly Charged Salaries and Wages Kinder Morgan, Inc. Various 1245487 Other Compensation and Benefits Kinder Morgan, Inc. Various 203510 Shared Services Kinder Morgan, Inc. Various 1871410 Construction Overheads Kinder Morgan, Inc. 107 6749 3327156 2 3 4 5 Unaccounted For Valuation 7102527 System Inventory-Fuel Revaluation -992292 1 2 Account 489.2, Revenues from transportation of gas of others through transmission facilities. 72204847 258770367 52184462 195689525 72204847 258770367 52184462 195689525 1 <div><!--?xml version="1.0" encoding="utf-8" standalone="no"?--> <p> </p> <p> </p> <!-- [if gte mso 9]> <xml> <o:DocumentProperties> <o:Author>Schecter, Amber</o:Author> <o:LastAuthor>Schecter, Amber</o:LastAuthor> <o:Revision>3</o:Revision> <o:TotalTime>3</o:TotalTime> <o:Created>2023-04-07T02:02:00Z</o:Created> <o:LastSaved>2023-04-07T02:05:00Z</o:LastSaved> <o:Pages>9</o:Pages> <o:Words>4336</o:Words> <o:Characters>24717</o:Characters> <o:Company>Kinder Morgan</o:Company> <o:Lines>205</o:Lines> <o:Paragraphs>57</o:Paragraphs> <o:CharactersWithSpaces>28996</o:CharactersWithSpaces> <o:Version>16.0000</o:Version> </o:DocumentProperties> </xml> <![endif]--> <div class="Section1"> <p style="margin-top: 0pt; margin-bottom: 0pt; line-height: normal; font-size: 16pt;"><font style="font-family: Arial; font-weight: bold; -aw-import: ignore;"> <br/></font></p> <p style="margin-top: 0pt; margin-bottom: 0pt; line-height: normal; font-size: 16pt;"><font style="font-family: Arial; font-weight: bold; -aw-import: ignore;"> <br/></font></p> <p style="margin-top: 0pt; margin-bottom: 0pt; line-height: normal; font-size: 16pt;"><font style="font-family: Arial; font-weight: bold;">1. General</font></p> <p style="margin-top: 14pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial; font-style: italic;">Organization</font></p> <p style="margin-top: 14pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">Stagecoach Pipeline &amp; Storage Company LLC (Stagecoach Pipeline) is a New York limited liability company formed in 2001. 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 style="margin-top: 14pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">For purposes of this report, references to &#8220;us,&#8221; &#8220;we,&#8221; &#8220;our,&#8221; &#8220;the Company,&#8221; or &#8220;Respondent&#8221; 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 style="margin-top: 14pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial; font-style: italic;">Description of Operations</font></p> <p style="margin-top: 14pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">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 style="margin-top: 14pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">The Respondent offers firm wheeling services through its North and South Laterals to/from </font><font style="font-family: Arial;">TGP's </font><font style="font-family: Arial;">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 facilities.</font></p> <p style="margin-top: 14pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">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 style="margin-top: 14pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">Stagecoach Pipeline provides natural gas storage services at market-based rates, and the Respondent provides firm wheeling services and firm transport services at negotiated and discounted rates (subject to cost-of-service recourse rates).</font></p> <p style="margin-top: 14pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial; font-weight: bold;">2. Summary of Significant Accounting Policies</font></p> <p style="margin-top: 14pt; margin-bottom: 0pt; line-height: normal; font-size: 16pt;"><font style="font-family: Arial; font-style: italic;">Basis of Presentation</font></p> </div> <p> </p> <div class="Section2"> <p style="margin-top: 0pt; margin-bottom: 0pt; line-height: normal; font-size: 16pt; text-align: justify;"><font style="font-family: Arial;">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).</font></p> <p style="margin-top: 14pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">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 style="margin-top: 14pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">Management has evaluated subsequent events through April 12, 2023, the date the financial statements were available to be issued.</font></p> <p style="margin-top: 14pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">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 style="margin-top: 14pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">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 style="margin-top: 14pt; margin-bottom: 0pt; line-height: normal; font-size: 16pt;"><font style="font-family: Arial; font-style: italic;">Use of Estimates</font></p> <p style="margin-top: 14pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">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 style="margin-top: 14pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">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 style="margin-top: 14pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial; font-style: italic;">Cash Equivalents</font></p> <p style="margin-top: 14pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">We define cash equivalents as all highly liquid short-term investments with original maturities of three months or less.</font></p> <p style="margin-top: 14pt; margin-bottom: 0pt; line-height: normal; font-size: 16pt;"><font style="font-family: Arial; font-style: italic;">Allowance for Credit Losses</font></p> </div> <p> </p> <div class="Section3"> <p style="margin-top: 14pt; margin-bottom: 14pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">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 style="margin-top: 14pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">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 style="margin-top: 14pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">Our allowance for credit losses is recorded in Account 144 "Accum. Provision for Uncollectible Accounts - Credit" on our balance sheets.</font></p> <p style="margin-top: 14pt; margin-left: 36pt; margin-bottom: 14pt; text-indent: -36pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial; font-style: italic;">Inventories</font></p> <p style="margin-top: 14pt; margin-bottom: 14pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">Our inventories, which consist of materials and supplies, are valued at weighted-average cost, and we periodically review for physical deterioration and obsolescence.</font></p> <p style="margin-top: 14pt; margin-left: 36pt; margin-bottom: 14pt; text-indent: -36pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial; font-style: italic;">Natural Gas Imbalances</font></p> <p style="margin-top: 14pt; margin-bottom: 14pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">Natural gas imbalances occur when the amount of natural gas delivered from or received by a pipeline system differs from the scheduled amount of gas to be delivered or received. We value these imbalances due to or from shippers and operators at current index prices. Imbalances are settled in cash or made up in-kind, subject to the terms of our FERC tariff. Imbalances due from others are reported on our balance sheets as part of Account 174 "Miscellaneous Current and Accrued Assets." Imbalances owed to others are reported on our balance sheets as part of Account 242 "Miscellaneous Current and Accrued Liabilities." We classify all imbalances due from or owed to others as current as we expect to settle them within a year.</font></p> <p style="margin-top: 14pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial; font-style: italic;">Property, Plant and Equipment</font></p> <p style="margin-top: 14pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">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 style="margin-top: 14pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">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 style="margin-top: 14pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">We capitalize a carrying cost (an allowance for funds used during construction or AFUDC) on debt funds related to the construction of long-lived assets. This carrying cost consists of a return on the investment financed by debt. The debt portion is calculated based on KMI&#8217;s long-term 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. </font></p> <p style="margin-top: 14pt; margin-bottom: 14pt; line-height: normal; font-size: 16pt;"><font style="font-family: Arial; font-style: italic;">Asset Retirement Obligations (ARO)</font></p> </div> <p> </p> <div class="Section4"> <p style="margin-top: 0pt; margin-bottom: 14pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">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 style="margin-top: 14pt; margin-bottom: 14pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">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 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, 2022 and 2021.</font></p> <p style="margin-top: 14pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial; font-style: italic;">Long-lived Asset Impairments</font></p> <p style="margin-top: 14pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">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 style="margin-top: 14pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">There were no impairments for the years ended December 31, 2022 and 2021.</font></p> <p style="margin-top: 14pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial; font-style: italic;">Revenue Recognition</font></p> <p style="margin-top: 14pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">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 style="margin-top: 14pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial; font-style: italic;">Revenue from Contracts with Customers.</font><font style="font-family: Arial;"> 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 style="margin-top: 14pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">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 style="margin-top: 14pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">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 </font><font style="font-family: Arial; font-size: 16pt;">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> </div> <div class="Section5"> <p style="margin-top: 14pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial; font-style: italic;">Contract Balances.</font><font style="font-family: Arial;"> Contract assets and contract liabilities are the result of timing differences between revenue recognition, billings and cash collections. As of December 31, 2022 and 2021, we had no contract assets or liabilities.</font></p> <p style="margin-top: 14pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial; font-style: italic;">Major Customers. </font><font style="font-family: Arial;">For the year ended December 31, 2022, revenues from our three largest customers were approximately $31.7 million, $16.6 million, and $15.2 million, each of which exceeded 10% of our operating revenues. For the year ended December 31, 2021, revenues from our two largest customers were approximately $21.7 million and $14.9 million, each of which exceeded 10% of our operating revenues.</font></p> <p style="margin-top: 14pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial; font-style: italic;">Legal Proceedings</font></p> <p style="margin-top: 14pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">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 style="margin-top: 14pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">We had no accruals for any outstanding legal proceedings as of December 31, 2021 and 2020.</font></p> <p style="margin-top: 14pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial; font-style: italic;">Environmental Matters</font></p> <p style="margin-top: 14pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">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. 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 style="margin-top: 14pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">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> </div> <p> </p> <div class="Section6"> <p style="margin-top: 14pt; margin-bottom: 14pt; line-height: normal; font-size: 16pt; text-align: justify;"><font style="font-family: Arial;">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 style="margin-top: 14pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">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, 2022 and 2021.</font></p> <p style="margin-top: 14pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial; font-style: italic;">Regulatory Assets and Liabilities</font></p> <p style="margin-top: 14pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">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 </font><font style="font-family: Arial;">ratemaking </font><font style="font-family: Arial;">process. Regulatory assets are recorded in Account 182.3 &#8220;Other Regulatory Assets&#8221; and regulatory liabilities are recorded in Account 254 &#8220;Other Regulatory Liabilities&#8221; on our balance sheets.</font></p> <p style="margin-top: 14pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: 'Times New Roman'; -aw-import: ignore;"> <br/></font></p> <p style="margin-top: 14pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial; font-weight: bold;">3. Income Taxes</font></p> <p style="margin-top: 14pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">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, and the FERC requires that we reflect such taxes in our financial statements.</font></p> <p style="margin-top: 14pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">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. Prior to July 8, 2021, 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 approximately 13% for the period January 1 to July 7, 2021. 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 year ended December 31, 2022 and 2021 is settled as a part of distributions to Members.</font></p> </div> <p> </p> <div class="Section7"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">The following table reflects the components of income tax expense included in net income (in millions):</font></p> <p style="margin-top: 14pt; margin-bottom: 14pt; line-height: normal; font-size: 12pt;"><font style="font-family: 'Times New Roman'; -aw-import: ignore;"> <br/></font></p> <table style="margin-left: 35.75pt; border-collapse: collapse;" cellspacing="0" cellpadding="0"> <tr> <td style="width: 560.1pt; border: 1pt solid #000000; padding-right: 3.9pt; padding-left: 3.9pt; vertical-align: top;"> <p style="margin-top: 0pt; margin-bottom: 0pt; line-height: normal; font-size: 16pt;"><font style="font-family: 'Times New Roman'; -aw-import: ignore;"> <br/></font></p> </td> <td style="width: 297.95pt; border-top: 1pt solid #000000; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1pt solid #000000; padding-right: 3.9pt; padding-left: 4.68pt; vertical-align: top; -aw-border-left: 0.75pt dash-large-gap;" colspan="2"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: center; line-height: normal; font-size: 16pt;"><font style="font-family: Arial; font-weight: bold;">Year Ended December 31,</font></p> </td> </tr> <tr> <td style="width: 560.1pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 1pt solid #000000; border-bottom: 1pt solid #000000; padding-right: 3.9pt; padding-left: 3.9pt; vertical-align: top; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; line-height: normal; font-size: 16pt;"><font style="font-family: 'Times New Roman'; -aw-import: ignore;"> <br/></font></p> </td> <td style="width: 135.95pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 4.5pt solid #000000; padding-right: 3.9pt; padding-left: 4.68pt; vertical-align: top; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: center; line-height: normal; font-size: 16pt;"><font style="font-family: Arial; font-weight: bold;">2022</font></p> </td> <td style="width: 131.45pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 4.5pt solid #000000; padding-right: 3.9pt; padding-left: 4.68pt; vertical-align: top; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: center; line-height: normal; font-size: 16pt;"><font style="font-family: Arial; font-weight: bold;">2021</font></p> </td> </tr> <tr> <td style="width: 560.1pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 1pt solid #000000; border-bottom: 1pt solid #000000; padding-right: 3.9pt; padding-left: 3.9pt; vertical-align: top; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">Current:</font></p> </td> <td style="width: 135.95pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1pt solid #000000; padding-right: 3.9pt; padding-left: 4.68pt; vertical-align: top; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; line-height: normal; font-size: 16pt;"><font style="font-family: 'Times New Roman'; -aw-import: ignore;"> <br/></font></p> </td> <td style="width: 131.45pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1pt solid #000000; padding-right: 3.9pt; padding-left: 4.68pt; vertical-align: top; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; line-height: normal; font-size: 16pt;"><font style="font-family: 'Times New Roman'; -aw-import: ignore;"> <br/></font></p> </td> </tr> <tr> <td style="width: 560.1pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 1pt solid #000000; border-bottom: 1pt solid #000000; padding-right: 3.9pt; padding-left: 3.9pt; vertical-align: top; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">Federal</font></p> </td> <td style="width: 135.95pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1pt solid #000000; padding-right: 3.9pt; padding-left: 4.68pt; vertical-align: top; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: right; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">$ 18.1</font></p> </td> <td style="width: 131.45pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1pt solid #000000; padding-right: 3.9pt; padding-left: 4.68pt; vertical-align: top; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: right; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">$ 6.4</font></p> </td> </tr> <tr> <td style="width: 560.1pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 1pt solid #000000; border-bottom: 1pt solid #000000; padding-right: 3.9pt; padding-left: 3.9pt; vertical-align: top; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">State</font></p> </td> <td style="width: 135.95pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1.5pt solid #000000; padding-right: 3.9pt; padding-left: 4.68pt; vertical-align: top; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: right; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">9.4</font></p> </td> <td style="width: 131.45pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1.5pt solid #000000; padding-right: 3.9pt; padding-left: 4.68pt; vertical-align: top; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: right; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">2.6</font></p> </td> </tr> <tr> <td style="width: 560.1pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 1pt solid #000000; border-bottom: 1pt solid #000000; padding-right: 3.9pt; padding-left: 3.9pt; vertical-align: top; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; line-height: normal; font-size: 16pt;"><font style="font-family: 'Times New Roman'; -aw-import: ignore;"> <br/></font></p> </td> <td style="width: 135.95pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1.5pt solid #000000; padding-right: 3.9pt; padding-left: 4.68pt; vertical-align: top; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: right; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">27.5</font></p> </td> <td style="width: 131.45pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1.5pt solid #000000; padding-right: 3.9pt; padding-left: 4.68pt; vertical-align: top; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: right; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">9.0</font></p> </td> </tr> <tr> <td style="width: 560.1pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 1pt solid #000000; border-bottom: 1pt solid #000000; padding-right: 3.9pt; padding-left: 3.9pt; vertical-align: top; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; line-height: normal; font-size: 16pt;"><font style="font-family: 'Times New Roman'; -aw-import: ignore;"> <br/></font></p> </td> <td style="width: 135.95pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1pt solid #000000; padding-right: 3.9pt; padding-left: 4.68pt; vertical-align: top; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; line-height: normal; font-size: 16pt;"><font style="font-family: 'Times New Roman'; -aw-import: ignore;"> <br/></font></p> </td> <td style="width: 131.45pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1pt solid #000000; padding-right: 3.9pt; padding-left: 4.68pt; vertical-align: top; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; line-height: normal; font-size: 16pt;"><font style="font-family: 'Times New Roman'; -aw-import: ignore;"> <br/></font></p> </td> </tr> <tr> <td style="width: 560.1pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 1pt solid #000000; border-bottom: 1pt solid #000000; padding-right: 3.9pt; padding-left: 3.9pt; vertical-align: top; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">Deferred:</font></p> </td> <td style="width: 135.95pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1pt solid #000000; padding-right: 3.9pt; padding-left: 4.68pt; vertical-align: top; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; line-height: normal; font-size: 16pt;"><font style="font-family: 'Times New Roman'; -aw-import: ignore;"> <br/></font></p> </td> <td style="width: 131.45pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1pt solid #000000; padding-right: 3.9pt; padding-left: 4.68pt; vertical-align: top; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; line-height: normal; font-size: 16pt;"><font style="font-family: 'Times New Roman'; -aw-import: ignore;"> <br/></font></p> </td> </tr> <tr> <td style="width: 560.1pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 1pt solid #000000; border-bottom: 1pt solid #000000; padding-right: 3.9pt; padding-left: 3.9pt; vertical-align: top; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">Federal</font></p> </td> <td style="width: 135.95pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1pt solid #000000; padding-right: 3.9pt; padding-left: 4.68pt; vertical-align: top; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: right; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">1.4</font></p> </td> <td style="width: 131.45pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1pt solid #000000; padding-right: 3.9pt; padding-left: 4.68pt; vertical-align: top; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: right; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">1.1</font></p> </td> </tr> <tr> <td style="width: 560.1pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 1pt solid #000000; border-bottom: 1pt solid #000000; padding-right: 3.9pt; padding-left: 3.9pt; vertical-align: top; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">State</font></p> </td> <td style="width: 135.95pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1.5pt solid #000000; padding-right: 3.9pt; padding-left: 4.68pt; vertical-align: top; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: right; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">0.6</font></p> </td> <td style="width: 131.45pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1.5pt solid #000000; padding-right: 3.9pt; padding-left: 4.68pt; vertical-align: top; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: right; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">0.4</font></p> </td> </tr> <tr> <td style="width: 560.1pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 1pt solid #000000; border-bottom: 1pt solid #000000; padding-right: 3.9pt; padding-left: 3.9pt; vertical-align: top; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; line-height: normal; font-size: 16pt;"><font style="font-family: 'Times New Roman'; -aw-import: ignore;"> <br/></font></p> </td> <td style="width: 135.95pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1.5pt solid #000000; padding-right: 3.9pt; padding-left: 4.68pt; vertical-align: top; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: right; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">2.0</font></p> </td> <td style="width: 131.45pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1.5pt solid #000000; padding-right: 3.9pt; padding-left: 4.68pt; vertical-align: top; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: right; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">1.5</font></p> </td> </tr> <tr> <td style="width: 560.1pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 1pt solid #000000; border-bottom: 1pt solid #000000; padding-right: 3.9pt; padding-left: 3.9pt; vertical-align: top; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">Total income tax expense</font></p> </td> <td style="width: 135.95pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1.5pt solid #000000; padding-right: 3.9pt; padding-left: 4.68pt; vertical-align: top; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: right; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">$ 29.5</font></p> </td> <td style="width: 131.45pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1.5pt solid #000000; padding-right: 3.9pt; padding-left: 4.68pt; vertical-align: top; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: right; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">$ 10.5</font></p> </td> </tr> <tr> <td style="width: 560.1pt; border: 0.75pt dashed #bbbbbb; padding-right: 4.03pt; padding-left: 4.03pt; vertical-align: top; -aw-border: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; line-height: normal; font-size: 12pt;"><font style="font-family: 'Times New Roman'; -aw-import: ignore;"> <br/></font></p> </td> <td style="width: 135.95pt; border: 0.75pt dashed #bbbbbb; padding-right: 4.03pt; padding-left: 4.68pt; vertical-align: top; -aw-border: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; line-height: normal; font-size: 12pt;"><font style="font-family: 'Times New Roman'; -aw-import: ignore;"> <br/></font></p> </td> <td style="width: 131.45pt; border: 0.75pt dashed #bbbbbb; padding-right: 4.03pt; padding-left: 4.68pt; vertical-align: top; -aw-border: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; line-height: normal; font-size: 12pt;"><font style="font-family: 'Times New Roman'; -aw-import: ignore;"> <br/></font></p> </td> </tr> </table> <p style="margin-top: 14pt; margin-bottom: 14pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: 'Times New Roman'; -aw-import: ignore;"> <br/></font></p> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">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 style="margin-top: 14pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: 'Times New Roman'; -aw-import: ignore;"> <br/></font></p> <table style="margin-left: 35.75pt; border-collapse: collapse;" cellspacing="0" cellpadding="0"> <tr> <td style="width: 560.1pt; border: 1pt solid #000000; padding-right: 3.9pt; padding-left: 3.9pt; vertical-align: top;"> <p style="margin-top: 0pt; margin-bottom: 0pt; line-height: normal; font-size: 16pt;"><font style="font-family: 'Times New Roman'; -aw-import: ignore;"> <br/></font></p> </td> <td style="width: 297.95pt; border-top: 1pt solid #000000; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1pt solid #000000; padding-right: 3.9pt; padding-left: 4.68pt; vertical-align: top; -aw-border-left: 0.75pt dash-large-gap;" colspan="2"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: center; line-height: normal; font-size: 16pt;"><font style="font-family: Arial; font-weight: bold;">Year Ended December 31,</font></p> </td> </tr> <tr> <td style="width: 560.1pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 1pt solid #000000; border-bottom: 1pt solid #000000; padding-right: 3.9pt; padding-left: 3.9pt; vertical-align: top; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; line-height: normal; font-size: 16pt;"><font style="font-family: 'Times New Roman'; -aw-import: ignore;"> <br/></font></p> </td> <td style="width: 135.95pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 4.5pt solid #000000; padding-right: 3.9pt; padding-left: 4.68pt; vertical-align: top; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: center; line-height: normal; font-size: 16pt;"><font style="font-family: Arial; font-weight: bold;">2022</font></p> </td> <td style="width: 131.45pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 4.5pt solid #000000; padding-right: 3.9pt; padding-left: 4.68pt; vertical-align: top; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: center; line-height: normal; font-size: 16pt;"><font style="font-family: Arial; font-weight: bold;">2021</font></p> </td> </tr> <tr> <td style="width: 560.1pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 1pt solid #000000; border-bottom: 1pt solid #000000; padding-right: 3.9pt; padding-left: 3.9pt; vertical-align: top; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">Income tax expense at the statutory federal rate</font></p> </td> <td style="width: 135.95pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1pt solid #000000; padding-right: 3.9pt; padding-left: 4.68pt; vertical-align: top; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: right; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">$ 21.5</font></p> </td> <td style="width: 131.45pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1pt solid #000000; padding-right: 3.9pt; padding-left: 4.68pt; vertical-align: top; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: right; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">$ 10.2</font></p> </td> </tr> <tr> <td style="width: 560.1pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 1pt solid #000000; border-bottom: 1pt solid #000000; padding-right: 3.9pt; padding-left: 3.9pt; vertical-align: top; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">State income tax, net of federal income tax effect</font></p> </td> <td style="width: 135.95pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1pt solid #000000; padding-right: 3.9pt; padding-left: 4.68pt; vertical-align: top; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: right; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">8.0</font></p> </td> <td style="width: 131.45pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1pt solid #000000; padding-right: 3.9pt; padding-left: 4.68pt; vertical-align: top; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: right; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">2.9</font></p> </td> </tr> <tr> <td style="width: 560.1pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 1pt solid #000000; border-bottom: 1pt solid #000000; padding-right: 3.9pt; padding-left: 3.9pt; vertical-align: top; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">MLP rate differential</font></p> </td> <td style="width: 135.95pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1pt solid #000000; padding-right: 3.9pt; padding-left: 4.68pt; vertical-align: top; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: right; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">-</font></p> </td> <td style="width: 131.45pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1pt solid #000000; padding-right: 3.9pt; padding-left: 4.68pt; vertical-align: top; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: right; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">(2.6)</font></p> </td> </tr> <tr> <td style="width: 560.1pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 1pt solid #000000; border-bottom: 1pt solid #000000; padding-right: 3.9pt; padding-left: 3.9pt; vertical-align: top; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">Total income tax expense</font></p> </td> <td style="width: 135.95pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1.5pt solid #000000; padding-right: 3.9pt; padding-left: 4.68pt; vertical-align: top; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: right; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">$ 29.5</font></p> </td> <td style="width: 131.45pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1.5pt solid #000000; padding-right: 3.9pt; padding-left: 4.68pt; vertical-align: top; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: right; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">$ 10.5</font></p> </td> </tr> <tr> <td style="width: 560.1pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 1pt solid #000000; border-bottom: 1pt solid #000000; padding-right: 3.9pt; padding-left: 3.9pt; vertical-align: top; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">Effective Tax Rate</font></p> </td> <td style="width: 135.95pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1.5pt solid #000000; padding-right: 3.9pt; padding-left: 4.68pt; vertical-align: top; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: right; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">28.8%</font></p> </td> <td style="width: 131.45pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1.5pt solid #000000; padding-right: 3.9pt; padding-left: 4.68pt; vertical-align: top; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: right; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">21.6%</font></p> </td> </tr> </table> <p style="margin-top: 14pt; margin-bottom: 14pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">The following are the components of our net deferred tax liability (in millions):</font></p> <p style="margin-top: 14pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: 'Times New Roman'; -aw-import: ignore;"> <br/></font></p> <table style="margin-left: 35.75pt; border-collapse: collapse;" cellspacing="0" cellpadding="0"> <tr> <td style="width: 560.1pt; border: 1pt solid #000000; padding-right: 3.9pt; padding-left: 3.9pt; vertical-align: top;"> <p style="margin-top: 0pt; margin-bottom: 0pt; line-height: normal; font-size: 16pt;"><font style="font-family: 'Times New Roman'; -aw-import: ignore;"> <br/></font></p> </td> <td style="width: 297.95pt; border-top: 1pt solid #000000; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1pt solid #000000; padding-right: 3.9pt; padding-left: 4.68pt; vertical-align: top; -aw-border-left: 0.75pt dash-large-gap;" colspan="2"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: center; line-height: normal; font-size: 16pt;"><font style="font-family: Arial; font-weight: bold;">December 31,</font></p> </td> </tr> <tr> <td style="width: 560.1pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 1pt solid #000000; border-bottom: 1pt solid #000000; padding-right: 3.9pt; padding-left: 3.9pt; vertical-align: top; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; line-height: normal; font-size: 16pt;"><font style="font-family: 'Times New Roman'; -aw-import: ignore;"> <br/></font></p> </td> <td style="width: 135.95pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 4.5pt solid #000000; padding-right: 3.9pt; padding-left: 4.68pt; vertical-align: top; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: center; line-height: normal; font-size: 16pt;"><font style="font-family: Arial; font-weight: bold;">2022</font></p> </td> <td style="width: 142.25pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 4.5pt solid #000000; padding-right: 3.9pt; padding-left: 4.68pt; vertical-align: top; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: center; line-height: normal; font-size: 16pt;"><font style="font-family: Arial; font-weight: bold;">2021</font></p> </td> </tr> <tr> <td style="width: 560.1pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 1pt solid #000000; border-bottom: 1pt solid #000000; padding-right: 3.9pt; padding-left: 3.9pt; vertical-align: top; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">Deferred tax liabilities:</font></p> </td> <td style="width: 135.95pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1pt solid #000000; padding-right: 3.9pt; padding-left: 4.68pt; vertical-align: top; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: right; line-height: normal; font-size: 16pt;"><font style="font-family: 'Times New Roman'; -aw-import: ignore;"> <br/></font></p> </td> <td style="width: 142.25pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1pt solid #000000; padding-right: 3.9pt; padding-left: 4.68pt; vertical-align: top; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: right; line-height: normal; font-size: 16pt;"><font style="font-family: 'Times New Roman'; -aw-import: ignore;"> <br/></font></p> </td> </tr> <tr> <td style="width: 560.1pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 1pt solid #000000; border-bottom: 1pt solid #000000; padding-right: 3.9pt; padding-left: 3.9pt; vertical-align: top; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">Property, plant and equipment</font></p> </td> <td style="width: 135.95pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1.5pt solid #000000; padding-right: 3.9pt; padding-left: 4.68pt; vertical-align: top; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: right; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">$ 3.1</font></p> </td> <td style="width: 142.25pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1.5pt solid #000000; padding-right: 3.9pt; padding-left: 4.68pt; vertical-align: top; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: right; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">$ 3.5</font></p> </td> </tr> <tr> <td style="width: 560.1pt; border: 1pt solid #000000; padding-right: 3.9pt; padding-left: 3.9pt; vertical-align: top;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">Net deferred tax liability</font></p> </td> <td style="width: 135.95pt; border-top: 1.5pt solid #000000; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1.5pt solid #000000; padding-right: 3.9pt; padding-left: 4.68pt; vertical-align: top; -aw-border-left: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: right; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">$ 3.1</font></p> </td> <td style="width: 142.25pt; border-top: 1.5pt solid #000000; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1.5pt solid #000000; padding-right: 3.9pt; padding-left: 4.68pt; vertical-align: top; -aw-border-left: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: right; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">$ 3.5</font></p> </td> </tr> <tr> <td style="width: 559.1pt; border-top: 1pt solid #000000; border-right: 0.75pt dashed #bbbbbb; border-left: 0.75pt dashed #bbbbbb; border-bottom: 0.75pt dashed #bbbbbb; padding-right: 4.53pt; padding-left: 4.53pt; vertical-align: top; -aw-border-bottom: 0.75pt dash-large-gap; -aw-border-left: 0.75pt dash-large-gap; -aw-border-right: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: 'Times New Roman'; -aw-import: ignore;"> <br/></font></p> </td> <td style="width: 135.1pt; border-top: 1.5pt solid #000000; border-right: 0.75pt dashed #bbbbbb; border-left: 0.75pt dashed #bbbbbb; border-bottom: 0.75pt dashed #bbbbbb; padding-right: 4.53pt; padding-left: 5.03pt; vertical-align: top; -aw-border-bottom: 0.75pt dash-large-gap; -aw-border-left: 0.75pt dash-large-gap; -aw-border-right: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: right; line-height: normal; font-size: 16pt;"><font style="font-family: 'Times New Roman'; -aw-import: ignore;"> <br/></font></p> </td> <td style="width: 141.4pt; border-top: 1.5pt solid #000000; border-right: 0.75pt dashed #bbbbbb; border-left: 0.75pt dashed #bbbbbb; border-bottom: 0.75pt dashed #bbbbbb; padding-right: 4.53pt; padding-left: 5.03pt; vertical-align: top; -aw-border-bottom: 0.75pt dash-large-gap; -aw-border-left: 0.75pt dash-large-gap; -aw-border-right: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: right; line-height: normal; font-size: 16pt;"><font style="font-family: 'Times New Roman'; -aw-import: ignore;"> <br/></font></p> </td> </tr> </table> </div> <p class="MsoNormal" style="text-align: justify;"><font style="font-size: 16.0pt; font-family: 'Arial',sans-serif; mso-bidi-font-weight: bold;">In accordance with the approval from the FERC under Docket No. AC23-1-000, in 2022 we reduced Account 282, "Accumulated Deferred Income Taxes -- Other Property" and increased Account 211, "Miscellaneous Paid-in Capital" by $2.3 million in connection with KMI&#8217;s July 2022 acquisition of Stagecoach Gas Services LLC and its subsidiaries, including Stagecoach Pipeline. This sale is a taxable transaction under the Internal Revenue Code and results in an increase to the tax basis of our assets.</font></p> <p class="MsoNormal" style="text-align: justify;"> </p> <div class="Section8"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial; font-weight: bold;">4.</font> <font style="font-family: Arial; font-weight: bold;">Utility Plant</font></p> <p style="margin-top: 14pt; margin-bottom: 0pt; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">Our net utility plant consisted of the following (in millions):</font></p> <p style="margin-top: 14pt; margin-bottom: 0pt; line-height: normal; font-size: 16pt;"><font style="font-family: Arial; -aw-import: ignore;"> <br/></font></p> <table style="border-collapse: collapse;" cellspacing="0" cellpadding="0"> <tr style="height: 21.6pt;"> <td style="width: 360.4pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 0.75pt dashed #bbbbbb; padding-right: 4.75pt; padding-left: 5.38pt; vertical-align: bottom; -aw-border-bottom: 0.75pt dash-large-gap; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; line-height: normal; font-size: 16pt;"><font style="font-family: Arial; -aw-import: ignore;"> <br/></font></p> </td> <td style="width: 166.2pt; border-top: 1pt solid #000000; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 0.75pt dashed #bbbbbb; padding-right: 4.75pt; padding-left: 5.38pt; vertical-align: bottom; -aw-border-bottom: 0.75pt dash-large-gap; -aw-border-left: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: center; line-height: normal; font-size: 16pt;"><font style="font-family: Arial; font-weight: bold;">Annual Depreciation</font></p> </td> <td style="width: 324.3pt; border-top: 1pt solid #000000; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1pt solid #000000; padding-right: 4.75pt; padding-left: 5.38pt; vertical-align: bottom; -aw-border-left: 0.75pt dash-large-gap;" colspan="4"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: center; line-height: normal; font-size: 16pt;"><font style="font-family: Arial; font-weight: bold;">December 31,</font></p> </td> </tr> <tr style="height: 21.6pt;"> <td style="width: 360.4pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1pt solid #000000; padding-right: 4.75pt; padding-left: 5.38pt; vertical-align: bottom; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; line-height: normal; font-size: 16pt;"><font style="font-family: Arial; -aw-import: ignore;"> <br/></font></p> </td> <td style="width: 166.2pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1pt solid #000000; padding-right: 4.75pt; padding-left: 5.38pt; vertical-align: bottom; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: center; line-height: normal; font-size: 16pt;"><font style="font-family: Arial; font-weight: bold;">Rates (%)</font></p> </td> <td style="width: 151.7pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 4.5pt solid #000000; padding-right: 4.75pt; padding-left: 5.38pt; vertical-align: bottom; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;" colspan="2"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: center; line-height: normal; font-size: 16pt;"><font style="font-family: Arial; font-weight: bold;">2022</font></p> </td> <td style="width: 161.6pt; border-top: 1pt solid #000000; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 4.5pt solid #000000; padding-right: 4.75pt; padding-left: 5.38pt; vertical-align: bottom; -aw-border-left: 0.75pt dash-large-gap;" colspan="2"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: center; line-height: normal; font-size: 16pt;"><font style="font-family: Arial; font-weight: bold;">2021</font></p> </td> </tr> <tr style="height: 21.6pt;"> <td style="width: 360.9pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 1pt solid #000000; border-bottom: 1pt solid #000000; padding-right: 4.75pt; padding-left: 4.75pt; vertical-align: bottom; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">Transmission facilities</font></p> </td> <td style="width: 166.2pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1pt solid #000000; padding-right: 4.75pt; padding-left: 5.38pt; vertical-align: top; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: center; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">4.0</font></p> </td> <td style="width: 22.7pt; border-top: 0.75pt dashed #bbbbbb; border-right: 0.75pt dashed #bbbbbb; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1pt solid #000000; padding-right: 5.38pt; padding-left: 5.38pt; vertical-align: bottom; -aw-border-left: 0.75pt dash-large-gap; -aw-border-right: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">$</font></p> </td> <td style="width: 117.5pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1pt solid #000000; padding-right: 4.75pt; padding-left: 5.38pt; vertical-align: bottom; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: right; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">532.4</font></p> </td> <td style="width: 8.9pt; border-top: 0.75pt dashed #bbbbbb; border-right: 0.75pt dashed #bbbbbb; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1pt solid #000000; padding-right: 5.38pt; padding-left: 5.38pt; vertical-align: bottom; -aw-border-left: 0.75pt dash-large-gap; -aw-border-right: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">$</font></p> </td> <td style="width: 141.2pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1pt solid #000000; padding-right: 4.75pt; padding-left: 5.38pt; vertical-align: bottom; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: right; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">532.3</font></p> </td> </tr> <tr style="height: 21.6pt;"> <td style="width: 360.9pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 1pt solid #000000; border-bottom: 1pt solid #000000; padding-right: 4.75pt; padding-left: 4.75pt; vertical-align: bottom; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">General plant</font></p> </td> <td style="width: 166.2pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1pt solid #000000; padding-right: 4.75pt; padding-left: 5.38pt; vertical-align: top; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: center; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">4.0</font></p> </td> <td style="width: 151.7pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1pt solid #000000; padding-right: 4.75pt; padding-left: 5.38pt; vertical-align: bottom; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;" colspan="2"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: right; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">0.6</font></p> </td> <td style="width: 161.6pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1pt solid #000000; padding-right: 4.75pt; padding-left: 5.38pt; vertical-align: bottom; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;" colspan="2"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: right; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">0.6</font></p> </td> </tr> <tr style="height: 21.6pt;"> <td style="width: 360.9pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 1pt solid #000000; border-bottom: 1pt solid #000000; padding-right: 4.75pt; padding-left: 4.75pt; vertical-align: bottom; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">Accumulated depreciation and amortization</font></p> </td> <td style="width: 166.2pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1pt solid #000000; padding-right: 4.75pt; padding-left: 5.38pt; vertical-align: top; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; line-height: normal; font-size: 16pt;"><font style="font-family: Arial; -aw-import: ignore;"> <br/></font></p> </td> <td style="width: 151.7pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 4.5pt solid #000000; padding-right: 4.75pt; padding-left: 5.38pt; vertical-align: bottom; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;" colspan="2"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: right; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">(270.8)</font></p> </td> <td style="width: 161.6pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 4.5pt solid #000000; padding-right: 4.75pt; padding-left: 5.38pt; vertical-align: bottom; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;" colspan="2"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: right; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">(249.5)</font></p> </td> </tr> <tr style="height: 21.6pt;"> <td style="width: 360.9pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 1pt solid #000000; border-bottom: 1pt solid #000000; padding-right: 4.75pt; padding-left: 4.75pt; vertical-align: bottom; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; line-height: normal; font-size: 16pt;"><font style="font-family: Arial; -aw-import: ignore;"> <br/></font></p> </td> <td style="width: 166.2pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1pt solid #000000; padding-right: 4.75pt; padding-left: 5.38pt; vertical-align: top; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; line-height: normal; font-size: 16pt;"><font style="font-family: Arial; -aw-import: ignore;"> <br/></font></p> </td> <td style="width: 22.7pt; border-top: 0.75pt dashed #bbbbbb; border-right: 0.75pt dashed #bbbbbb; border-left: 0.75pt dashed #bbbbbb; border-bottom: 4.5pt solid #000000; padding-right: 5.38pt; padding-left: 5.38pt; vertical-align: bottom; -aw-border-left: 0.75pt dash-large-gap; -aw-border-right: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; line-height: normal; font-size: 16pt;"><font style="font-family: Arial; -aw-import: ignore;"> <br/></font></p> </td> <td style="width: 117.5pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 4.5pt solid #000000; padding-right: 4.75pt; padding-left: 5.38pt; vertical-align: bottom; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: right; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">262.2</font></p> </td> <td style="width: 8.9pt; border-top: 0.75pt dashed #bbbbbb; border-right: 0.75pt dashed #bbbbbb; border-left: 0.75pt dashed #bbbbbb; border-bottom: 4.5pt solid #000000; padding-right: 5.38pt; padding-left: 5.38pt; vertical-align: bottom; -aw-border-left: 0.75pt dash-large-gap; -aw-border-right: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; line-height: normal; font-size: 16pt;"><font style="font-family: Arial; -aw-import: ignore;"> <br/></font></p> </td> <td style="width: 141.2pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 4.5pt solid #000000; padding-right: 4.75pt; padding-left: 5.38pt; vertical-align: bottom; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: right; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">283.4</font></p> </td> </tr> <tr style="height: 21.6pt;"> <td style="width: 360.9pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 1pt solid #000000; border-bottom: 1pt solid #000000; padding-right: 4.75pt; padding-left: 4.75pt; vertical-align: bottom; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">Land</font></p> </td> <td style="width: 166.2pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1pt solid #000000; padding-right: 4.75pt; padding-left: 5.38pt; vertical-align: top; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; line-height: normal; font-size: 16pt;"><font style="font-family: Arial; -aw-import: ignore;"> <br/></font></p> </td> <td style="width: 151.7pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1pt solid #000000; padding-right: 4.75pt; padding-left: 5.38pt; vertical-align: bottom; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;" colspan="2"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: right; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">11.7</font></p> </td> <td style="width: 161.6pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1pt solid #000000; padding-right: 4.75pt; padding-left: 5.38pt; vertical-align: bottom; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;" colspan="2"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: right; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">11.7</font></p> </td> </tr> <tr style="height: 21.6pt;"> <td style="width: 360.9pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 1pt solid #000000; border-bottom: 1pt solid #000000; padding-right: 4.75pt; padding-left: 4.75pt; vertical-align: bottom; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">Construction work in progress</font></p> </td> <td style="width: 166.2pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1pt solid #000000; padding-right: 4.75pt; padding-left: 5.38pt; vertical-align: top; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; line-height: normal; font-size: 16pt;"><font style="font-family: Arial; -aw-import: ignore;"> <br/></font></p> </td> <td style="width: 151.7pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 4.5pt solid #000000; padding-right: 4.75pt; padding-left: 5.38pt; vertical-align: bottom; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;" colspan="2"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: right; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">-</font></p> </td> <td style="width: 161.6pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 4.5pt solid #000000; padding-right: 4.75pt; padding-left: 5.38pt; vertical-align: bottom; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;" colspan="2"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: right; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">0.1</font></p> </td> </tr> <tr style="height: 21.6pt;"> <td style="width: 360.9pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 1pt solid #000000; border-bottom: 1pt solid #000000; padding-right: 4.75pt; padding-left: 4.75pt; vertical-align: bottom; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">Net utility plant</font></p> </td> <td style="width: 166.2pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1pt solid #000000; padding-right: 4.75pt; padding-left: 5.38pt; vertical-align: top; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; line-height: normal; font-size: 16pt;"><font style="font-family: Arial; -aw-import: ignore;"> <br/></font></p> </td> <td style="width: 22.7pt; border-top: 0.75pt dashed #bbbbbb; border-right: 0.75pt dashed #bbbbbb; border-left: 0.75pt dashed #bbbbbb; border-bottom: 4.5pt solid #000000; padding-right: 5.38pt; padding-left: 5.38pt; vertical-align: bottom; -aw-border-left: 0.75pt dash-large-gap; -aw-border-right: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">$</font></p> </td> <td style="width: 117.5pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 4.5pt solid #000000; padding-right: 4.75pt; padding-left: 5.38pt; vertical-align: bottom; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: right; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">273.9</font></p> </td> <td style="width: 8.9pt; border-top: 0.75pt dashed #bbbbbb; border-right: 0.75pt dashed #bbbbbb; border-left: 0.75pt dashed #bbbbbb; border-bottom: 4.5pt solid #000000; padding-right: 5.38pt; padding-left: 5.38pt; vertical-align: bottom; -aw-border-left: 0.75pt dash-large-gap; -aw-border-right: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">$</font></p> </td> <td style="width: 141.2pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 4.5pt solid #000000; padding-right: 4.75pt; padding-left: 5.38pt; vertical-align: bottom; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: right; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">295.2</font></p> </td> </tr> </table> <p style="margin-top: 14pt; margin-bottom: 14pt; line-height: normal; font-size: 12pt;"><font style="font-family: 'Times New Roman'; -aw-import: ignore;"> <br/></font></p> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial; font-weight: bold;">5. Related Party Transactions</font></p> <p style="margin-top: 14pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial; font-style: italic;">Cash Management Program</font></p> <p style="margin-top: 14pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">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, 2022 and 2021, Respondent had no balance with KMI or Stagecoach Pipeline under the cash management program.</font></p> <p style="margin-top: 14pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial; font-style: italic;">Affiliate Balances and Activities</font></p> <p style="margin-top: 14pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">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 was $2.4 million. These costs are included in Account 401 "Operation Expenses" on our income statement.</font></p> <p style="margin-top: 14pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">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 year ended December 31, 2022 and the period July 8, 2021 to December 31, 2021, Respondent's portion of these costs amounted to $3.3 million and $2.0 million, respectively. These costs are included, as appropriate, in operation and maintenance expenses and taxes other than income taxes on our income statements.</font></p> </div> <p> </p> <div class="Section9"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">We have transportation agreements with Consolidated Edison which, prior to July 8, 2021 was an affiliate of Stagecoach Pipeline. For the year ended December 31, 2021, we recognized affiliate revenue of $3.0 million under these agreements.</font></p> <p style="margin-top: 14pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial; font-style: italic;">Affiliate Balances and Activities</font></p> <p style="margin-top: 14pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">The following table summarizes our other balance sheet affiliate balances (in millions):</font></p> <p style="margin-top: 14pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: 'Times New Roman'; -aw-import: ignore;"> <br/></font></p> <table style="border-collapse: collapse;" cellspacing="0" cellpadding="0"> <tr style="height: 30pt;"> <td style="width: 56.65pt; border-top: 1pt solid #000000; border-right: 1pt solid #000000; border-left: 1pt solid #000000; border-bottom: 4.5pt solid #000000; padding-right: 3.9pt; padding-left: 3.9pt; vertical-align: middle;" rowspan="2"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: center; line-height: normal; font-size: 16pt;"><font style="font-family: Arial; font-weight: bold;">Account</font></p> </td> <td style="width: 612.95pt; border-top: 1pt solid #000000; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1pt solid #000000; padding-right: 3.9pt; padding-left: 4.68pt; vertical-align: top; -aw-border-left: 0.75pt dash-large-gap;" rowspan="2"> <p style="margin-top: 0pt; margin-bottom: 0pt; line-height: normal; font-size: 16pt;"><font style="font-family: 'Times New Roman'; -aw-import: ignore;"> <br/></font></p> </td> <td style="width: 359.7pt; border-top: 1pt solid #000000; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1pt solid #000000; padding-right: 3.9pt; padding-left: 4.68pt; vertical-align: bottom; -aw-border-left: 0.75pt dash-large-gap;" colspan="5"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: center; line-height: normal; font-size: 16pt;"><font style="font-family: Arial; font-weight: bold;">December 31,</font></p> </td> </tr> <tr style="height: 18.7pt;"> <td style="width: 156.65pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 4.5pt solid #000000; padding-right: 3.9pt; padding-left: 4.68pt; vertical-align: bottom; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;" colspan="2"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: center; line-height: normal; font-size: 16pt;"><font style="font-family: Arial; font-weight: bold;">2022</font></p> </td> <td style="width: 183.45pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 4.5pt solid #000000; padding-right: 3.9pt; padding-left: 4.68pt; vertical-align: bottom; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;" colspan="3"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: center; line-height: normal; font-size: 16pt;"><font style="font-family: Arial; font-weight: bold;">2021</font></p> </td> </tr> <tr style="height: 18.7pt;"> <td style="width: 56.65pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 1pt solid #000000; border-bottom: 1pt solid #000000; padding-right: 3.9pt; padding-left: 3.9pt; vertical-align: bottom; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: center; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">146</font></p> </td> <td style="width: 612.95pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1pt solid #000000; padding-right: 3.9pt; padding-left: 4.68pt; vertical-align: bottom; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-right: 3.75pt; margin-bottom: 0pt; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">Accounts receivable from associated companies</font></p> </td> <td style="border-top: 0.75pt dashed #bbbbbb; border-right: 0.75pt dashed #bbbbbb; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1pt solid #000000; padding-right: 4.68pt; padding-left: 4.68pt; vertical-align: bottom; -aw-border-left: 0.75pt dash-large-gap; -aw-border-right: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: right; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">$</font></p> </td> <td style="width: 136.95pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1pt solid #000000; padding-right: 3.9pt; padding-left: 4.68pt; vertical-align: bottom; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: right; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">-</font></p> </td> <td style="border-top: 0.75pt dashed #bbbbbb; border-right: 0.75pt dashed #bbbbbb; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1pt solid #000000; padding-right: 4.68pt; padding-left: 4.68pt; vertical-align: bottom; -aw-border-left: 0.75pt dash-large-gap; -aw-border-right: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">$</font></p> </td> <td style="width: 163.7pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1pt solid #000000; padding-right: 3.9pt; padding-left: 4.68pt; vertical-align: bottom; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;" colspan="2"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: right; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">0.1</font></p> </td> </tr> <tr style="height: 18.7pt;"> <td style="width: 56.65pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 1pt solid #000000; border-bottom: 1pt solid #000000; padding-right: 3.9pt; padding-left: 3.9pt; vertical-align: bottom; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: center; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">186</font></p> </td> <td style="width: 612.95pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1pt solid #000000; padding-right: 3.9pt; padding-left: 4.68pt; vertical-align: bottom; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-right: 3.75pt; margin-bottom: 0pt; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">Advance of deferred income taxes to Member</font></p> </td> <td style="border-top: 0.75pt dashed #bbbbbb; border-right: 0.75pt dashed #bbbbbb; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1pt solid #000000; padding-right: 4.68pt; padding-left: 4.68pt; vertical-align: bottom; -aw-border-left: 0.75pt dash-large-gap; -aw-border-right: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; line-height: normal; font-size: 16pt;"><font style="font-family: 'Times New Roman'; -aw-import: ignore;"> <br/></font></p> </td> <td style="width: 136.95pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1pt solid #000000; padding-right: 3.9pt; padding-left: 4.68pt; vertical-align: bottom; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: right; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">3.1</font></p> </td> <td style="border-top: 0.75pt dashed #bbbbbb; border-right: 0.75pt dashed #bbbbbb; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1pt solid #000000; padding-right: 4.68pt; padding-left: 4.68pt; vertical-align: bottom; -aw-border-left: 0.75pt dash-large-gap; -aw-border-right: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; line-height: normal; font-size: 16pt;"><font style="font-family: 'Times New Roman'; -aw-import: ignore;"> <br/></font></p> </td> <td style="width: 163.7pt; border-top: 0.75pt dashed #bbbbbb; border-right: 1pt solid #000000; border-left: 0.75pt dashed #bbbbbb; border-bottom: 1pt solid #000000; padding-right: 3.9pt; padding-left: 4.68pt; vertical-align: bottom; -aw-border-left: 0.75pt dash-large-gap; -aw-border-top: 0.75pt dash-large-gap;" colspan="2"> <p style="margin-top: 0pt; margin-bottom: 0pt; text-align: right; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">1.2</font></p> </td> </tr> <tr> <td style="width: 73.5pt; border-top: 1.5pt solid #000000; border-right: 0.75pt dashed #bbbbbb; border-left: 0.75pt dashed #bbbbbb; border-bottom: 0.75pt dashed #bbbbbb; vertical-align: middle; -aw-border-bottom: 0.75pt dash-large-gap; -aw-border-left: 0.75pt dash-large-gap; -aw-border-right: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; line-height: normal; font-size: 16pt;"><font style="font-family: 'Times New Roman'; -aw-import: ignore;"> <br/></font></p> </td> <td style="width: 631.1pt; border-top: 1.5pt solid #000000; border-right: 0.75pt dashed #bbbbbb; border-left: 0.75pt dashed #bbbbbb; border-bottom: 0.75pt dashed #bbbbbb; vertical-align: middle; -aw-border-bottom: 0.75pt dash-large-gap; -aw-border-left: 0.75pt dash-large-gap; -aw-border-right: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; line-height: normal; font-size: 16pt;"><font style="font-family: 'Times New Roman'; -aw-import: ignore;"> <br/></font></p> </td> <td style="width: 18.2pt; border-top: 1.5pt solid #000000; border-right: 0.75pt dashed #bbbbbb; border-left: 0.75pt dashed #bbbbbb; border-bottom: 0.75pt dashed #bbbbbb; vertical-align: middle; -aw-border-bottom: 0.75pt dash-large-gap; -aw-border-left: 0.75pt dash-large-gap; -aw-border-right: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; line-height: normal; font-size: 16pt;"><font style="font-family: 'Times New Roman'; -aw-import: ignore;"> <br/></font></p> </td> <td style="width: 174.75pt; border-top: 1.5pt solid #000000; border-right: 0.75pt dashed #bbbbbb; border-left: 0.75pt dashed #bbbbbb; border-bottom: 0.75pt dashed #bbbbbb; vertical-align: middle; -aw-border-bottom: 0.75pt dash-large-gap; -aw-border-left: 0.75pt dash-large-gap; -aw-border-right: 0.75pt dash-large-gap;" colspan="2"> <p style="margin-top: 0pt; margin-bottom: 0pt; line-height: normal; font-size: 16pt;"><font style="font-family: 'Times New Roman'; -aw-import: ignore;"> <br/></font></p> </td> <td style="width: 23.65pt; border-top: 1.5pt solid #000000; border-right: 0.75pt dashed #bbbbbb; border-left: 0.75pt dashed #bbbbbb; border-bottom: 0.75pt dashed #bbbbbb; vertical-align: middle; -aw-border-bottom: 0.75pt dash-large-gap; -aw-border-left: 0.75pt dash-large-gap; -aw-border-right: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; line-height: normal; font-size: 16pt;"><font style="font-family: 'Times New Roman'; -aw-import: ignore;"> <br/></font></p> </td> <td style="width: 156.7pt; border-top: 1.5pt solid #000000; border-right: 0.75pt dashed #bbbbbb; border-left: 0.75pt dashed #bbbbbb; border-bottom: 0.75pt dashed #bbbbbb; vertical-align: middle; -aw-border-bottom: 0.75pt dash-large-gap; -aw-border-left: 0.75pt dash-large-gap; -aw-border-right: 0.75pt dash-large-gap;"> <p style="margin-top: 0pt; margin-bottom: 0pt; line-height: normal; font-size: 16pt;"><font style="font-family: 'Times New Roman'; -aw-import: ignore;"> <br/></font></p> </td> </tr> <tr style="height: 0pt;"> <td style="width: 74.25pt;"> </td> <td style="width: 631.85pt;"> </td> <td style="width: 19pt;"> </td> <td style="width: 147.15pt;"> </td> <td style="width: 28.35pt;"> </td> <td style="width: 24.4pt;"> </td> <td style="width: 157.45pt;"> </td> </tr> </table> <p style="margin-top: 14pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial; font-style: italic;">Other Affiliate Agreement</font></p> <p style="margin-top: 14pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt;"><font style="font-family: Arial;">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> <p style="margin-top: 14pt; margin-bottom: 14pt; line-height: normal; font-size: 12pt;"><font style="font-family: 'Times New Roman'; -aw-import: ignore;"> <br/></font></p> <p style="margin-top: 0pt; margin-bottom: 0pt; line-height: normal; font-size: 16pt; background-color: #ffffff;"><font style="font-family: Arial; font-weight: bold;">6. Rate and Regulatory Matters</font></p> <p style="margin-top: 14pt; margin-bottom: 0pt; text-align: justify; line-height: normal; font-size: 16pt; background-color: #ffffff;"><font style="font-family: Arial;">On September 22, 2022, we were notified by the FERC of the commencement of a rate proceeding against us pursuant to Section 5 of the Natural Gas Act, setting the matter for hearing and directing us to file a cost-and-revenue study within 75 days. We filed a cost-and-revenue study on December 6, 2022, and began active settlement discussions in conjunction with that filing. As a result of those discussions, we reached an agreement in principle with the participants on February 22, 2023 to resolve all issues arising from the proceeding.</font> <font style="font-family: Arial;">In light of that agreement, the procedural schedule was suspended on February 22, 2023; and on March 3, 2023, we filed to implement the settlement rates on an interim basis, effective April 1, 2023.</font> <font style="font-family: Arial;">That filing was approved on March 10, 2023.</font> <font style="font-family: Arial;">We expect to file the settlement agreement for FERC approval in late April 2023.</font> <font style="font-family: Arial;">We do not believe that the ultimate resolution of this proceeding will have a material adverse impact to our business.</font></p> <p style="margin-top: 0pt; margin-bottom: 8pt;"><font style="-aw-import: ignore;"> <br/></font></p> </div></div> Stagecoach Pipeline & Storage Company LLC 366701 366701 624860784 155226032 19804114 6807170 611510 -2725085 3844103 1572435 11444798 2118630 1106803 263662 485222 158681 System Supply - Net Park & Loan 6722525 -1878687 Deliveries of Contract Storage 37064385 7862805 706310945 169772344 697238 387500 636096885 155226032 37064385 7862805 785610 -384072 3844103 1572435 44460 187 Other Gas Used 1642 1031 Gas Used for Storage compressor Station Fuel 1002 1002 Net Park & Loan 6722525 -1878687 Gas of Others Received for Contract Storage 19804114 6807170 TBO Fuel 10156 2968 Imbalance Cashout 53295 53295 705125415 169651666 1185530 120678 706310945 169772344 16 17 32 33 34 35 36 37 Kinder Morgan, Inc. directly owns 97.58% of Kinder Morgan Energy Partners, L.P. and 100% of Kinder Morgan GP LLC. See page 102 "Control Over Respondent" for a description of our ownership structure. Rate for borrowed funds actually used during year is based upon the Kinder Morgan corporate rate for long-term debt. 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 Rate Adjustment $ 43,765 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 Industry Research: FIS Capital Markets US LLC Account Amount 107 $ 2,474 186 2,346 926 198,690 Total $ 203,510 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. As of December 31, 2022, 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 Rate Adjustment $ 41,809 Transmission Plant (in thousands) Page 204 Ln 92 col (g) $ 544,048 Less: Land 11,695 $ 532,353 Transferred to Account 211 "Miscellaneous Paid-in Capital." The value of this gas is based on the current month index price and it is not adjusted to reflect a change in pricing subsequent to the month shipper supplied gas is retained. This footnote applies to all periods within the quarter. A non-revenue recognition method for shipper supplied gas is used which results in accounting entries for net fuel over or under collected rather than separate revenue entries for shipper supplied gas and expenses for gas used in compressors. This footnote applies to lines 4 and 6 for all periods within the quarter. Gas supplied as operational gas for "Transportation by Others." This footnote applies to all periods within the quarter. This line includes operation and maintenance fuel and known losses due to blowdowns, emergency shut downs, compressor start-ups, flares, line purges, tube inspections and relief valves. This footnote applies to all periods within the quarter. Accounts 855, 856 and 863 are debited for gas used for other operational purposes. This footnote applies to all periods within the quarter. See page 218 "General Description of Construction Overhead Procedure" for the basis of allocation. Many of the natural gas volumes required to be reported on this page are tracked at the entity level rather than by discounted, negotiated or recourse rate contracts; therefore, the amounts reported have been allocated to discounted, negotiated or recourse rate contracts based on reasonable assumptions. Account Amount 107 $ 18,808 186 13,291 408.1 82,538 850 74,993 853 195,094 856 63,945 857 54,752 864 195,091 920 546,975 Total $ 1,245,487 As of December 31, 2022, 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 $ 3,165,056 See Page 332 for additional details on Transmission and Compression of Gas by Others. Settlement of deferred income taxes in 2022 pursuant to Docket No. AC23-1-000. See page 122.1, Notes to Financial Statements, Note 3 "Income Taxes" for additional information. Imbalance volumes are netted by zone on a quarterly basis. The imbalance volumes netted by zone/rate schedule for each quarter are then added together to arrive at the annual imbalance volumes by zone/rate schedule. Page 331 Line 6 Total 1,182,327 Reversal of 12/2021 UAF (61,779) Recording of 12/2022 UAF 64,982 Page 520 Line 32 Column (c) 1,185,530 Account Amount 408.1 $ 61,194 920 837,088 923 173,213 925 197,601 926 158,986 930.2 263,392 931 179,936 Total $ 1,871,410 Gas withdrawn for operational balancing purposes. Volumes are on a flow month basis.