Schedule of Regulatory Assets and Liabilities |
We had the following regulatory assets and liabilities (in thousands): | | | | | | | | | | | | | Maximum | As of | As of | As of | | Amortization | June 30, 2017 | December 31, 2016 | June 30, 2016 | | (in years) | | | | Regulatory assets | | | | | Deferred energy and fuel cost adjustments - current (a)(d) | 1 | $ | 20,761 |
| $ | 17,491 |
| $ | 20,603 |
| Deferred gas cost adjustments (a)(d) | 1 | 9,060 |
| 15,329 |
| 12,122 |
| Gas price derivatives (a) | 3.5 | 11,159 |
| 8,843 |
| 11,515 |
| Deferred taxes on AFUDC (b) | 45 | 15,322 |
| 15,227 |
| 13,879 |
| Employee benefit plans (c) | 12 | 107,419 |
| 108,556 |
| 109,522 |
| Environmental (a) | subject to approval | 1,070 |
| 1,108 |
| 1,144 |
| Asset retirement obligations (a) | 44 | 510 |
| 505 |
| 505 |
| Loss on reacquired debt (a) | 30 | 21,466 |
| 22,266 |
| 3,061 |
| Renewable energy standard adjustment (b) | 5 | 768 |
| 1,605 |
| 2,679 |
| Deferred taxes on flow through accounting (c) | 35 | 40,586 |
| 37,498 |
| 31,554 |
| Decommissioning costs (e) | 6 | 14,681 |
| 16,859 |
| 18,399 |
| Gas supply contract termination | 5 | 22,793 |
| 26,666 |
| 28,385 |
| Other regulatory assets (a) (e) | 15 | 31,565 |
| 24,189 |
| 22,044 |
| | | $ | 297,160 |
| $ | 296,142 |
| $ | 275,412 |
| | | | | | Regulatory liabilities | | | | | Deferred energy and gas costs (a) (d) | 1 | $ | 16,767 |
| $ | 10,368 |
| $ | 32,868 |
| Employee benefit plan costs and related deferred taxes (c) | 12 | 67,297 |
| 68,654 |
| 62,712 |
| Cost of removal (a) | 44 | 125,247 |
| 118,410 |
| 126,002 |
| Revenue subject to refund | 1 | 1,518 |
| 2,485 |
| 1,616 |
| Other regulatory liabilities (c) | 25 | 5,481 |
| 6,839 |
| 6,243 |
| | | $ | 216,310 |
| $ | 206,756 |
| $ | 229,441 |
|
__________ | | (a) | We are allowed recovery of costs, but we are not allowed a rate of return. |
| | (b) | In addition to recovery of costs, we are allowed a rate of return. |
| | (c) | In addition to recovery or repayment of costs, we are allowed a return on a portion of this amount or a reduction in rate base. |
| | (d) | Our deferred energy, fuel cost, and gas cost adjustments represent the cost of electricity and gas delivered to our electric and gas utility customers that is either higher or lower than current rates and will be recovered or refunded in future rates. Our electric and gas utilities file periodic quarterly, semi-annual, and/or annual filings to recover these costs based on the respective cost mechanisms approved by their applicable state utility commissions. |
| | (e) | In accordance with a settlement agreement approved by the SDPUC on June 16, 2017, the amortization of South Dakota Electric’s decommissioning costs of approximately $11 million, vegetation management costs of approximately $14 million, and Winter Storm Atlas costs of approximately $2.0 million will be amortized over 6 years, effective July 1, 2017. Decommissioning costs and Winter Storm Atlas costs were previously amortized over a 10 year period ending September 30, 2024. The vegetation management costs were previously unamortized. The change in amortization periods for these costs will increase annual amortization expense by approximately $2.7 million. |
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