ARO Trust (Notes)

3 Months Ended

Mar. 31, 2024

Investments, Debt and Equity Securities [Abstract]

We are entitled to collect in rates the amounts necessary to fund our asset retirement obligations (ARO). We deposit monthly, into an external trust account (ARO Trust), the revenues specifically designated for AROs. The ARO Trust carries a moderate risk portfolio. The Money Market Funds held in our ARO Trust are considered investments. The financial instruments held in our ARO Trust are measured at fair value and reported in Other Assets - Other on the Balance Sheet. However, in accordance with ASC Topic 980, Regulated Operations, both realized and unrealized gains and losses of the ARO Trust are ultimately recorded as regulatory assets or liabilities.

Pursuant to the approved stipulation and agreement in Docket No. RP18-1126, the annual funding obligation effective March 1, 2020 is approximately $16.0 million with deposits made monthly.

Investments within the ARO Trust were as follows (in millions):


	March 31, 2024				December 31, 2023
	Amortized Cost Basis		Fair Value		Amortized Cost Basis		Fair Value
Money Market Funds	$	26.7	$	26.7	$	25.5	$	25.5
U.S. Equity Funds	52.7		130.7		52.7		119.8
International Equity Funds	31.7		40.9		31.7		39.2
Municipal Bond Funds	87.7		83.8		87.7		84.4
Total	$	198.8	$	282.1	$	197.6	$	268.9

TRANSCONTINENTAL GAS PIPE LINE COMPANY, LLC 10-Q