(5) Regulatory Matters

Regulatory Assets and Liabilities

Regulatory assets represent costs that are expected to be recovered in future regulated rates. The Company's regulatory assets reflected on the Consolidated Balance Sheets consist of the following as of December 31 (in millions):



	Weighted
	Average
	Remaining Life	2011		2010
Noncurrent regulatory assets:
Deferred income taxes⁽¹⁾	30 years	$	1,069	$	978
Employee benefit plans⁽²⁾	10 years	834		612
Unrealized loss on regulated derivative contracts	3 years	421		566
Unamortized contract values⁽³⁾	9 years	187		—
Other	Various	324		277
Noncurrent regulatory assets		2,835		2,433
Current regulatory assets		83		64
Total regulatory assets		$	2,918	$	2,497


(1)	Amounts primarily represent income tax benefits related to state accelerated tax depreciation and certain property-related basis differences that were previously flowed through to customers and will be included in regulated rates when the temporary differences reverse.


(2)	Substantially represents amounts not yet recognized as a component of net periodic benefit cost that are expected to be included in regulated rates when recognized.


(3)	Represents frozen values of contracts previously accounted for as derivatives and recorded at fair value, including $168 million reclassified from unrealized loss on regulated derivative contracts to unamortized contract values as a result of designating certain commodity derivatives as normal purchases or normal sales in December 2011. Refer to Note 7 for additional information.

The Company had regulatory assets not earning a return on investment of $2.602 billion and $2.263 billion as of December 31, 2011 and 2010, respectively.

Regulatory liabilities represent income to be recognized or amounts to be returned to customers in future periods. The Company's regulatory liabilities reflected on the Consolidated Balance Sheets consist of the following as of December 31 (in millions):



	Weighted
	Average
	Remaining Life	2011		2010
Noncurrent regulatory liabilities:
Cost of removal⁽¹⁾	30 years	$	1,404	$	1,376
Asset retirement obligations	28 years	88		129
Employee benefit plans⁽²⁾	19 years	12		23
Unrealized gain on regulated derivative contracts	1 year	21		2
Other	Various	138		108
Noncurrent regulatory liabilities		1,663		1,638
Current regulatory liabilities		68		26
Total regulatory liabilities		$	1,731	$	1,664


(1)	Amounts represent estimated costs, as accrued through depreciation rates and exclusive of ARO liabilities, of removing regulated property, plant and equipment in accordance with accepted regulatory practices. Amounts are deducted from rate base or otherwise accrue a carrying cost.


(2)	Represents amounts not yet recognized as a component of net periodic benefit cost that are to be returned to customers in future periods when recognized.