Regulatory Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2019

Regulatory Assets and Liabilities Disclosure [Abstract]

Regulatory assets and liabilities reflected in the Company's balance sheet are presented below (in thousands):



	Amortization Period Ends	December 31, 2019		December 31, 2018
Regulatory assets
Regulatory tax assets	(a)	$	37,771	$	39,519
Loss on reacquired debt (b)	June 2035	13,221		14,074
Final coal reclamation	(c)	3,405		4,065
Four Corners decommissioning	(d)	5,023		5,813
Nuclear fuel postload daily financing charge	(e)	4,197		3,717
Issuance costs related to reissued debt (b)	July 2042	1,991		728
Texas 2015 rate case costs (f)	January 2021	378		747
Texas 2017 rate case costs	January 2021	1,504		2,634
Texas TCRF surcharge (g)	March 2021	2,965		—
New Mexico renewable energy credits and related costs (h)	June 2022	3,588		4,709
New Mexico Palo Verde deferred depreciation	(i)	3,959		4,111
Fuel revenue under-recovery	(j)	327		—
Other regulatory assets	various	2,415		1,703
Total regulatory assets		80,744		81,820
Current portion (amount due within one year)		9,939		6,972
Regulatory assets, non-current		$	70,805	$	74,848
Regulatory liabilities
Regulatory tax liabilities	(k)	$	291,619	$	291,557
Accumulated deferred investment tax credit	(l)	7,122		7,872
New Mexico energy efficiency	(m)	183		1,694
Fuel revenue over-recovery	(j)	18,743		11,047
Other regulatory liabilities	various	760		1,086
Total regulatory liabilities		318,427		313,256
Current portion (amount due within one year)		19,961		14,686
Regulatory liabilities, non-current		$	298,466	$	298,570

______________________________

(a)

This item relates to (i) the regulatory treatment of the equity portion of AFUDC which is recovered in rate base by an offset with the related accumulated deferred income tax liability, and (ii) excess deferred state income taxes which are recovered through amortization to tax expense in cost of service. The amortization period for the excess deferred state income taxes is 15 years as established in the PUCT Final Order in Docket No. 44941 and the NMPRC Final Order in Case No. 15-00127-UT ("NMPRC Final Order").


(b)	These items are recovered as a component of the weighted cost of debt and amortized over the life of the related debt issuance.


(c)	This item relates to coal reclamation costs associated with Four Corners. The Texas portion was approved for recovery in PUCT Docket No. 46308 and is being recovered over seven years through June 2023. The New Mexico portion was approved in NMPRC Case No. 15-00109-UT and the amortization period will be established in the next general rate case.


(d)	This item relates to the decommissioning of Four Corners. The Texas portion was approved for recovery in PUCT Docket No. 46308 and is being recovered over seven years through July 2024. The New Mexico portion was approved in NMPRC Case No. 15-00109-UT and the amortization period will be established in the next general rate case.


(e)	This item is recovered through fuel recovery mechanisms established by tariffs.


(f)	The 2017 PUCT Final Order approved a new recovery period for these costs, beginning January 10, 2018.


(g)	This item represents revenue associated with the Company's 2019 TCRF rate filing related to the period from July 30, 2019, through December 31, 2019. The recovery period is over a period of 12 months beginning on April 1, 2020. See Part II, Item 8, Financial Statements and Supplementary Data, Note D of Notes to Financial Statements for further discussion.


(h)	This item relates to renewable energy credits and procurement plan costs, of which a component has been approved for recovery in the NMPRC Final Order. The remaining balance will be requested for recovery in the next general rate case.


(i)	The amortization period for this item is based upon the NRC license life for each unit at Palo Verde.


(j)	This item represents the net under or over-recovery of fuel and purchased power expense which is recovered or refunded through fuel rates.


(k)	This item primarily relates to the reduction in the federal corporate income tax rate from 35% to 21% as enacted by the TCJA. The amortization period for the recovery on this item will be addressed in the next base rate filings in all jurisdictions. See Part II, Item 8, Financial Statements and Supplementary Data, Note L of Notes to Financial Statements for further discussion.


(l)	The amortization period is based upon the life of the associated assets.

(m)

This item is recovered or credited through the Company's EUERF. See Part II, Item 8, Financial Statements and Supplementary Data, Note D of Notes to Financial Statements for further discussion.