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REGULATORY ASSETS AND LIABILITIES (Notes)
12 Months Ended
Dec. 31, 2016
SCHEDULE OF REGULATED ASSETS AND LIABILITIES [Line Items]  
Schedule of Regulatory Assets and Liabilities
8.
REGULATORY ASSETS AND LIABILITIES

The table below presents a summary of regulatory assets, net of amortization, and liabilities for the periods indicated:
 
 
 
 
December 31, 2016
 
 
Remaining Recovery Period
 
Current
 
Noncurrent
 
Total
 
 
 
 
(Thousands of dollars)
Under-recovered purchased-gas costs
 
1 year
 
$
29,901

 
$

 
$
29,901

Pension and other postemployment benefit costs
 
See Note 11
 
31,498

 
427,448

 
458,946

Weather normalization
 
1 year
 
17,661

 

 
17,661

Reacquired debt costs
 
11 years
 
812

 
8,108

 
8,920

Other
 
1 to 22 years
 
3,274

 
4,966

 
8,240

Total regulatory assets, net of amortization
 
 
 
83,146

 
440,522

 
523,668

Over-recovered purchased-gas costs
 
1 year
 
(10,154
)
 

 
(10,154
)
Ad-valorem tax
 
1 year
 
(1,768
)
 

 
(1,768
)
Total regulatory liabilities
 
 
 
(11,922
)
 

 
(11,922
)
Net regulatory assets and liabilities
 
 
 
$
71,224

 
$
440,522

 
$
511,746


 
 
 
 
December 31, 2015
 
 
Remaining Recovery Period
 
Current
 
Noncurrent
 
Total
 
 
 
 
(Thousands of dollars)
Under-recovered purchased-gas costs
 
1 year
 
$
13,336

 
$

 
$
13,336

Pension and other postemployment benefit costs
 
See Note 11
 
15,670

 
425,175

 
440,845

Weather normalization
 
1 year
 
2,198

 

 
2,198

Reacquired debt costs
 
12 years
 
812

 
8,919

 
9,731

Other
 
1 to 23 years
 
909

 
1,769

 
2,678

Total regulatory assets, net of amortization
 
 
 
32,925

 
435,863

 
468,788

Accumulated removal costs (a)
 
up to 50 years
 

 
(9,032
)
 
(9,032
)
Over-recovered purchased-gas costs
 
1 year
 
(22,884
)
 

 
(22,884
)
Ad-valorem tax
 
1 year
 
(1,731
)
 

 
(1,731
)
Total regulatory liabilities
 
 
 
(24,615
)
 
(9,032
)
 
(33,647
)
Net regulatory assets and liabilities
 
 
 
$
8,310

 
$
426,831

 
$
435,141

(a) Included in other deferred credits in our Balance Sheets.

Regulatory assets on our Balance Sheets, as authorized by the various regulatory authorities, are probable of recovery. Base rates are designed to provide a recovery of cost during the period rates are in effect but do not generally provide for a return on investment for amounts we have deferred as regulatory assets. All of our regulatory assets recoverable through base rates are subject to review by the respective regulatory authorities during future rate proceedings. We are not aware of any evidence that these costs will not be recoverable through either rate riders or base rates, and we believe that we will be able to recover such costs, consistent with our historical recoveries.

Purchased-gas costs represent the natural gas costs that have been over- or under-recovered from customers through the purchased-gas cost adjustment mechanisms, and includes natural gas utilized in our operations and premiums paid and any cash settlements received from our purchased natural gas call options.

We amortize reacquired debt costs in accordance with the accounting guidelines prescribed by the OCC and KCC.

Weather normalization represents revenue over- or under-recovered through the WNA rider in Kansas. This amount is deferred as a regulatory asset or liability for a 12-month period. Kansas Gas Service then applies an adjustment to the customers’ bills for 12 months to refund the over-collected revenue or bill the under-collected revenue.

Ad-valorem tax represents an increase or decrease in Kansas Gas Service’s taxes above or below the amount approved in a rate case. This amount is deferred as a regulatory asset or liability for a 12-month period. Kansas Gas Service then applies an adjustment to the customers’ bills for 12 months to refund the over-collected revenue or bill the under-collected revenue.

Recovery through rates resulted in amortization of regulatory assets of approximately $3.8 million, $1.6 million and $6.4 million for the years ended December 31, 2016, 2015 and 2014, respectively.

We collect, through our rates, the estimated costs of removal on certain regulated properties through depreciation expense, with a corresponding credit to accumulated depreciation and amortization. These removal costs are nonlegal obligations; however, the amounts collected that are in excess of these nonlegal asset-removal costs incurred are accounted for as a regulatory liability. We have made an estimate of our regulatory liability using current rates since the last general rate order in each of our jurisdictions if the removal costs collected have exceeded our removal costs incurred. We record the estimated nonlegal asset-removal obligation in noncurrent liabilities in other deferred credits on our Balance Sheets.

In January 2016, as a result of our rate case in Oklahoma, we recorded a regulatory asset of $2.4 million to recover certain information technology costs incurred as a result of our separation from ONEOK in 2014, which will be recovered over four years.