17 unchanged sentences
NW Holdings and NW Natural may also enter into financial derivative instruments, including interest rate swaps, options and other hedging instruments, to manage and mitigate interest rate exposure.
−Removed: NW Holdings and NW Natural did not have any interest rate swaps outstanding as of December 31, 2021 or 2020.
+Added: NW Holdings and NWN Water entered into interest rate swaps transactions for a total notional amount of $155 million to manage variable interest rate risk in December 2022.
+Added: NW Natural did not have any outstanding interest rate swaps as of December 31, 2022 or 2021.
Foreign Currency Risk
12 unchanged sentences
Based on estimated fair value at December 31, 2022, NW Natural's overall credit exposure relating to commodity contracts was $150.6 million.
−Removed: We generally have credit exposure to financial derivative counterparties when forward gas prices exceed our hedge prices, which was the case with all financial swap counterparties at December 31, 2021.
+Added: We generally have credit exposure to financial commodity swap derivative counterparties when forward gas prices exceed our hedge prices, which was the case with all financial swap counterparties at December 31, 2022.
+Added: NW Natural’s credit exposure also includes interest rate swap and foreign exchange forward counterparties, neither of which were significant at December 31, 2022.
NW Natural's financial derivatives policy requires counterparties to have at least an investment-grade credit rating at the time the derivative instrument is entered into and specific limits on the contract amount and duration based on each counterparty’s credit rating.
16 unchanged sentences
Contracts are diversified across counterparties, business types and countries to reduce credit and liquidity risk.
−Removed: At December 31, 2021, financial derivative credit risk on a volumetric basis was geographically concentrated 37% in the United States and 63% in Canada, based on counterparties' location.
−Removed: At December 31, 2020, financial derivative credit risk on a volumetric basis was geographically concentrated 43% in the United States and 57% in Canada with our counterparties.
+Added: At December 31, 2022, financial derivative commodity credit risk on a volumetric basis was geographically concentrated 28% in the United States and 71% in Canada, based on counterparties' location.
+Added: At December 31, 2021, financial derivative commodity credit risk on a volumetric basis was geographically concentrated 37% in the United States and 63% in Canada with our counterparties.
Credit Exposure to Insurance Companies
4 unchanged sentences
A large percentage of NGD margin is volume driven, and current rates are based on an assumption of average weather.
−Removed: NW Natural's weather normalization mechanism in Oregon is for residential and commercial customers, which is intended to stabilize the recovery of NGD business fixed costs and reduce fluctuations in customers’ bills due to colder or warmer than average weather.
+Added: NW Natural's weather normalization mechanism in Oregon is for residential and small commercial customers, which is intended to stabilize the recovery of NGD business fixed costs and reduce fluctuations in customers’ bills due to colder or warmer than average weather.
Customers in Oregon are allowed to opt out of the weather normalization mechanism.
4 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.