ACQUISITION AND DISPOSITION OF PROPERTIES

9 Months Ended

Sep. 30, 2014

Leases [Abstract]

ACQUISITION AND DISPOSITION OF PROPERTIES

ACQUISITION AND DISPOSITION OF PROPERTIES

In August 2013, the Company recorded a pre-tax gain of $10.9 related to the sale of its Metro Operations Center, which is located in Birmingham, Alabama, and has been in service since the 1940s. The Company received approximately $13.8 in cash from the sale of this property. During the third calendar quarter of 2013, the gain on the sale was recognized in other income and a related reduction in revenues was recognized to defer the gain as a regulatory liability pending review by the APSC. In conjunction with the receipt of the rate order from the APSC on December 20, 2013, the Company recognized the deferred revenues from this sale in the fourth calendar quarter of 2013. Effective upon the sale of the Metro Operations Center, the Company leased the facility from the purchaser for a period of approximately 20 months.