Effects of Regulation
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12 Months Ended |
Dec. 31, 2013
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Effects of Regulation |
5. EFFECTS OF REGULATION Regulated Generating Units to be Retired Before or During 2016 The following regulated generating units are probable of abandonment. Accordingly, CWIP and Plant in Service has been reclassified as Other Property, Plant and Equipment on the balance sheet as of December 31, 2013. The following table summarizes the plant investment and cost of removal, currently being recovered, for each generating unit as of December 31, 2013. Plant Name and Unit | | Company | | | Gross Investment | | | Accumulated Depreciation | | | Net Investment | | | Cost of Removal Regulatory Liability | | Expected Retirement Date | | Remaining Recovery Period | | | | | | | | | | | | | | | (in millions) | | | | | Tanners Creek Plant, | | I&M | | $ | 681 | | $ | 354 | | $ | 327 | | $ | 87 | | 2015 | | 17 years | Units 1-4 | | | | | | | | | | | | | | | | | | | Big Sandy Plant, Unit 2 | | KPCo | | | 424 | | | 180 | | | 244 | | | 47 | | 2015 | | 27 years | Northeastern Station, | | PSO | | | 182 | | | 89 | | | 93 | | | 11 | | 2016 | | 27 years | Unit 4 | | | | | | | | | | | | | | | | | | | Welsh Plant, Unit 2 | | SWEPCo | | | 175 | | | 93 | | | 82 | | | 19 | | 2016 | | 27 years | Total | | | | $ | 1,462 | | $ | 716 | | $ | 746 | | $ | 164 | | | | |
In accordance with accounting guidance for “Regulated Operations”, APCo regulated generating units expected to be retired before or during 2016 are not considered probable of abandonment. Regulatory Assets Regulatory assets are comprised of the following items: | | | | | December 31, | | Remaining | | | | | | 2013 | | 2012 | | Recovery Period | | | | | | | | | | | | | Current Regulatory Assets | | (in millions) | | | Under-recovered Fuel Costs - earns a return | | $ | 61 | | $ | 86 | | 1 year | Under-recovered Fuel Costs - does not earn a return | | | 19 | | | 2 | | 1 year | Total Current Regulatory Assets | | $ | 80 | | $ | 88 | | | | | | | | | | | | Noncurrent Regulatory Assets | | | | | | | | | Regulatory assets not yet being recovered pending future | | | | | | | | | | proceedings to determine the recovery method and timing: | | | | | | | | | | | | | | | | | | | Regulatory Assets Currently Earning a Return | | | | | | | | | | | Storm Related Costs | | $ | 22 | | $ | 23 | | | | | Ohio Economic Development Rider | | | 14 | | | 13 | | | | | Other Regulatory Assets Not Yet Being Recovered | | | 4 | | | 1 | | | | Regulatory Assets Currently Not Earning a Return | | | | | | | | | | | Storm Related Costs | | | 161 | | | 172 | | | | | Ormet Special Rate Recovery Mechanism | | | 36 | | | 5 | | | | | Indiana Under-Recovered Capacity Costs | | | 22 | | | - | | | | | Expanded Net Energy Charge - Coal Inventory | | | 21 | | | - | | | | | Mountaineer Carbon Capture and Storage Product Validation Facility | | | 13 | | | 14 | | | | | Virginia Environmental Rate Adjustment Clause | | | 2 | | | 29 | | | | | Litigation Settlement | | | - | | | 11 | | | | | Other Regulatory Assets Not Yet Being Recovered | | | 35 | | | 36 | | | Total Regulatory Assets Not Yet Being Recovered | | | 330 | | | 304 | | | | | | | | | | | | Regulatory assets being recovered: | | | | | | | | | | | | | | | | | | | Regulatory Assets Currently Earning a Return | | | | | | | | | | | Ohio Fuel Adjustment Clause | | | 445 | | | 519 | | 5 years | | | Ohio Capacity Deferral | | | 288 | | | 66 | | 5 years | | | Ohio Transmission Cost Recovery Rider | | | 87 | | | 49 | | 2 years | | | Unamortized Loss on Reacquired Debt | | | 81 | | | 82 | | 30 years | | | Texas Meter Replacement Costs | | | 77 | | | 47 | | 15 years | | | Ohio Distribution Decoupling | | | 31 | | | - | | 2 years | | | Storm Related Costs | | | 17 | | | 36 | | 5 years | | | RTO Formation/Integration Costs | | | 12 | | | 15 | | 6 years | | | Red Rock Generating Facility | | | 10 | | | 10 | | 43 years | | | West Virginia Expanded Net Energy Charge | | | - | | | 273 | | | | | Ohio Deferred Asset Recovery Rider | | | - | | | 152 | | | | | Other Regulatory Assets Being Recovered | | | 18 | | | 15 | | various | | Regulatory Assets Currently Not Earning a Return | | | | | | | | | | | Income Taxes, Net | | | 1,390 | | | 1,353 | | 55 years | | | Pension and OPEB Funded Status | | | 1,157 | | | 1,896 | | 11 years | | | Cook Nuclear Plant Refueling Outage Levelization | | | 58 | | | 27 | | 3 years | | | Medicare Subsidy | | | 51 | | | - | | 11 years | | | Virginia Transmission Rate Adjustment Clause | | | 47 | | | 33 | | 2 years | | | Peak Demand Reduction/Energy Efficiency | | | 44 | | | 12 | | 2 years | | | Postemployment Benefits | | | 40 | | | 45 | | 5 years | | | United Mine Workers of America Pension Withdrawal | | | 27 | | | - | | 12 years | | | Virginia Environmental Rate Adjustment Clause | | | 27 | | | 8 | | 1 year | | | Under-Recovery of Transmission Cost Recovery Factor | | | 20 | | | 6 | | 1 year | | | Storm Related Costs | | | 18 | | | 27 | | 5 years | | | Vegetation Management | | | 14 | | | 13 | | 1 year | | | Deferred Restructuring Costs | | | 11 | | | 15 | | 5 years | | | Litigation Settlement | | | 10 | | | - | | 12 years | | | Under-Recovered Distribution Investment Rider | | | 9 | | | 1 | | 1 year | | | Asset Retirement Obligation | | | 8 | | | 9 | | 33 years | | | West Virginia Expanded Net Energy Charge | | | - | | | 26 | | | | | Ohio Distribution Decoupling | | | - | | | 16 | | | | | Deferred PJM Fees | | | - | | | 14 | | | | | Unrealized Loss on Forward Commitments | | | - | | | 8 | | | | | Other Regulatory Assets Being Recovered | | | 49 | | | 29 | | various | Total Regulatory Assets Being Recovered | | | 4,046 | | | 4,802 | | | | | | | | | | | | Total Noncurrent Regulatory Assets | | $ | 4,376 | | $ | 5,106 | | | | | | | | | | | | | | |
Regulatory Liabilities Regulatory liabilities are comprised of the following items: | | | | | | December 31, | | Remaining | | | | | | | 2013 | | 2012 | | Refund Period | | Current Regulatory Liabilities | | (in millions) | | | | Over-recovered Fuel Costs - pays a return | | $ | 9 | | $ | 25 | | 1 year | | Over-recovered Fuel Costs - does not pay a return | | | 110 | | | 22 | | 1 year | | Total Current Regulatory Liabilities | | $ | 119 | | $ | 47 | | | | | | | | | | | | | | Noncurrent Regulatory Liabilities and | | | | | | | | | | Deferred Investment Tax Credits | | | | | | | | | | Regulatory liabilities not yet being paid: | | | | | | | | | | | | | | | | | | | | | | | | Regulatory Liabilities Currently Paying a Return | | | | | | | | | | | | Louisiana Refundable Construction Financing Costs | | $ | - | | $ | 96 | | | | | | Other Regulatory Liabilities Not Yet Being Paid | | | 5 | | | 4 | | | | | Regulatory Liabilities Currently Not Paying a Return | | | | | | | | | | | | Other Regulatory Liabilities Not Yet Being Paid | | | 3 | | | 9 | | | | Total Regulatory Liabilities Not Yet Being Paid | | | 8 | | | 109 | | | | | | | | | | | | | | | | | Regulatory liabilities being paid: | | | | | | | | | | | | | | | | | | | | | Regulatory Liabilities Currently Paying a Return | | | | | | | | | | | | Asset Removal Costs | | | 2,589 | | | 2,511 | | (a) | | | | Louisiana Refundable Construction Financing Costs | | | 78 | | | - | | 5 years | | | | Advanced Metering Infrastructure Surcharge | | | 68 | | | 83 | | 7 years | | | | Deferred Investment Tax Credits | | | 29 | | | 23 | | 47 years | | | | Excess Earnings | | | 12 | | | 12 | | 40 years | | | | Other Regulatory Liabilities Being Paid | | | 1 | | | 1 | | various | | | Regulatory Liabilities Currently Not Paying a Return | | | | | | | | | | | | Excess Asset Retirement Obligations for | | | | | | | | | | | | | Nuclear Decommissioning Liability | | | 597 | | | 436 | | (b) | | | | Deferred Investment Tax Credits | | | 121 | | | 136 | | 49 years | | | | Spent Nuclear Fuel Liability | | | 43 | | | 43 | | (b) | | | | Over-Recovery of Transition Charges | | | 40 | | | 57 | | 14 years | | | | Unrealized Gain on Forward Commitments | | | 35 | | | 46 | | 4 years | | | | Deferred State Income Tax Coal Credits | | | 28 | | | 29 | | 10 years | | | | Peak Demand Reduction/Energy Efficiency | | | 18 | | | 31 | | 1 year | | | | Over-Recovery of PJM Expense | | | 14 | | | - | | 2 years | | | | Other Regulatory Liabilities Being Paid | | | 13 | | | 27 | | various | | Total Regulatory Liabilities Being Paid | | | 3,686 | | | 3,435 | | | | | | | | | | | | | | Total Noncurrent Regulatory Liabilities and | | | | | | | | | | | Deferred Investment Tax Credits | | $ | 3,694 | | $ | 3,544 | | | | | | | | | | | | | | (a) | Relieved as removal costs are incurred. | | (b) | Relieved when plant is decommissioned. | | | | | | | | | | | | | |
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Appalachian Power Co [Member]
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Effects of Regulation |
4. EFFECTS OF REGULATION Regulatory Assets Regulatory assets and liabilities are comprised of the following items: | | | | | | | APCo | | I&M | | | | | | | | | | Remaining | | | | Remaining | | | | | | | | December 31, | | Recovery | | December 31, | | Recovery | Regulatory Assets: | | 2013 | | 2012 | | Period | | 2013 | | 2012 | | Period | | | (in thousands) | | | | (in thousands) | | | Current Regulatory Assets | | | | | | | | | | | | | | | | | Under-recovered Fuel Costs - earns a return | | $ | 39,811 | | $ | 74,906 | | 1 year | | $ | - | | $ | 3,029 | | | Under-recovered Fuel Costs - does not earn a return | | | - | | | - | | | | | 3,397 | | | 1,647 | | 1 year | Total Current Regulatory Assets | | $ | 39,811 | | $ | 74,906 | | | | $ | 3,397 | | $ | 4,676 | | | | | | | | | | | | | | | | | | | | Noncurrent Regulatory Assets | | | | | | | | | | | | | | | | | Regulatory assets not yet being recovered pending | | | | | | | | | | | | | | | | | | future proceedings to determine the recovery | | | | | | | | | | | | | | | | | | method and timing: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Regulatory Assets Currently Not Earning a Return | | | | | | | | | | | | | | | | | | | | Storm Related Costs | | $ | 65,206 | | $ | 94,458 | | | | $ | 1,836 | | $ | - | | | | | | Expanded Net Energy Charge - Coal Inventory | | | 20,528 | | | - | | | | | - | | | - | | | | | | Mountaineer Carbon Capture and Storage | | | | | | | | | | | | | | | | | | | | | Product Validation Facility | | | 13,264 | | | 14,155 | | | | | - | | | - | | | | | | Virginia Demand Response Program Costs | | | 5,012 | | | 1,447 | | | | | - | | | - | | | | | | Transmission Agreement Phase-In | | | 3,313 | | | 2,992 | | | | | - | | | - | | | | | | Virginia Environmental Rate Adjustment Clause | | | 2,440 | | | 29,320 | | | | | - | | | - | | | | | | Mountaineer Carbon Capture and Storage | | | | | | | | | | | | | | | | | | | | | Commercial Scale Facility | | | 1,287 | | | 1,287 | | | | | - | | | 1,380 | | | | | | Indiana Under-Recovered Capacity Costs | | | - | | | - | | | | | 21,945 | | | - | | | | | | Indiana Deferred Cook Plant Life Cycle | | | | | | | | | | | | | | | | | | | | | Management Project Costs | | | - | | | - | | | | | 4,093 | | | - | | | | | | Stranded Costs on Abandoned Plants | | | - | | | - | | | | | 3,896 | | | - | | | | | | Dresden Plant Operating Costs | | | - | | | 8,758 | | | | | - | | | - | | | | | | Deferred Wind Power Costs | | | - | | | 5,143 | | | | | - | | | - | | | | | | Litigation Settlement | | | - | | | - | | | | | - | | | 11,098 | | | | | | Other Regulatory Assets Not Yet Being Recovered | | | 168 | | | - | | | | | 3,616 | | | 786 | | | Total Regulatory Assets Not Yet Being Recovered | | | 111,218 | | | 157,560 | | | | | 35,386 | | | 13,264 | | | | | | | | | | | | | | | | | | | | Regulatory assets being recovered: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Regulatory Assets Currently Earning a Return | | | | | | | | | | | | | | | | | | | | Storm Related Costs | | | 17,167 | | | 21,371 | | 5 years | | | - | | | - | | | | | | Unamortized Loss on Reacquired Debt | | | 11,622 | | | 12,969 | | 29 years | | | 21,508 | | | 15,871 | | 19 years | | | | RTO Formation/Integration Costs | | | 3,473 | | | 4,370 | | 6 years | | | 2,544 | | | 3,229 | | 6 years | | | | Cook Plant, Unit 2 Baffle Bolts | | | - | | | - | | | | | 7,248 | | | - | | 25 years | | | | West Virginia Expanded Net Energy Charge | | | - | | | 272,783 | | | | | - | | | - | | | | | | Customer Choice Implementation Costs | | | - | | | - | | | | | - | | | 1,493 | | | | | | Other Regulatory Assets Being Recovered | | | 665 | | | - | | various | | | 522 | | | - | | various | | Regulatory Assets Currently Not Earning a Return | | | | | | | | | | | | | | | | | | | | Income Taxes, Net | | | 531,302 | | | 525,549 | | 26 years | | | 250,478 | | | 222,252 | | 30 years | | | | Pension and OPEB Funded Status | | | 192,464 | | | 312,645 | | 11 years | | | 100,132 | | | 220,797 | | 11 years | | | | Virginia Transmission Rate Adjustment Clause | | | 47,322 | | | 32,992 | | 2 years | | | - | | | - | | | | | | Virginia Environmental Rate Adjustment Clause | | | 27,426 | | | 8,347 | | 1 year | | | - | | | - | | | | | | Postemployment Benefits | | | 19,772 | | | 22,663 | | 5 years | | | 9,096 | | | 8,897 | | 5 years | | | | Storm Related Costs | | | 11,100 | | | 13,712 | | 5 years | | | - | | | - | | | | | | Deferred Restructuring Costs | | | 8,525 | | | 10,531 | | 5 years | | | 2,423 | | | 3,688 | | 2 years | | | | Medicare Subsidy | | | 6,477 | | | - | | 11 years | | | 11,221 | | | - | | 11 years | | | | Litigation Settlement | | | - | | | - | | | | | 10,382 | | | - | | 12 years | | | | Asset Retirement Obligation | | | 6,453 | | | 8,489 | | 4 years | | | 696 | | | 808 | | 7 years | | | | Virginia Generation Rate Adjustment Clause | | | 6,491 | | | 3,469 | | 2 years | | | - | | | - | | | | | | West Virginia Expanded Net Energy Charge | | | - | | | 25,932 | | | | | - | | | - | | | | | | Virginia Environmental and Reliability Costs | | | - | | | 560 | | | | | - | | | - | | | | | | Cook Nuclear Plant Refueling Outage Levelization | | | - | | | - | | | | | 57,979 | | | 26,652 | | 3 years | | | | Peak Demand Reduction/Energy Efficiency | | | - | | | - | | | | | 4,457 | | | 2,608 | | 1 year | | | | Off-system Sales Margin Sharing | | | - | | | - | | | | | 4,409 | | | - | | 1 year | | | | River Transportation Division Expenses | | | - | | | - | | | | | 4,090 | | | 4,576 | | 1 year | | | | Deferred PJM Fees | | | - | | | - | | | | | - | | | 13,998 | | | | | | Other Regulatory Assets Being Recovered | | | 2,413 | | | 1,762 | | various | | | 1,543 | | | 1,886 | | various | Total Regulatory Assets Being Recovered | | | 892,672 | | | 1,278,144 | | | | | 488,728 | | | 526,755 | | | | | | | | | | | | | | | | | | | | Total Noncurrent Regulatory Assets | | $ | 1,003,890 | | $ | 1,435,704 | | | | $ | 524,114 | | $ | 540,019 | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | APCo | | I&M | | | | | | | | | | Remaining | | | | Remaining | | | | | | | | December 31, | | Refund | | December 31, | | Refund | Regulatory Liabilities: | | 2013 | | 2012 | | Period | | 2013 | | 2012 | | Period | | | (in thousands) | | | | (in thousands) | | | Current Regulatory Liabilities | | | | | | | | | | | | | | | | | Over-recovered Fuel Costs - does not pay a return | | $ | 107,048 | | $ | - | | 1 year | | $ | - | | $ | - | | | Over-recovered Fuel Costs - pays a return | | | - | | | - | | | | | 1,976 | | | - | | 1 year | Total Current Regulatory Liabilities | | $ | 107,048 | | $ | - | | | | $ | 1,976 | | $ | - | | | | | | | | | | | | | | | | | | | | Noncurrent Regulatory Liabilities and | | | | | | | | | | | | | | | | | Deferred Investment Tax Credits | | | | | | | | | | | | | | | | | Regulatory liabilities not yet being paid: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Regulatory Liabilities Currently Not Paying a Return | | | | | | | | | | | | | | | | | | | | Other Regulatory Liabilities Not Yet Being Paid | | $ | 249 | | $ | 249 | | | | $ | 113 | | $ | 124 | | | Total Regulatory Liabilities Not Yet Being Paid | | | 249 | | | 249 | | | | | 113 | | | 124 | | | | | | | | | | | | | | | | | | | | | | | | | Regulatory liabilities being paid: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Regulatory Liabilities Currently Paying a Return | | | | | | | | | | | | | | | | | | | | Asset Removal Costs | | | 583,723 | | | 552,590 | | (a) | | | 389,025 | | | 381,116 | | (a) | | | | Deferred Investment Tax Credits | | | 1,863 | | | 2,823 | | 47 years | | | - | | | - | | | | Regulatory Liabilities Currently Not Paying a Return | | | | | | | | | | | | | | | | | | | | Deferred State Income Tax Coal Credits | | | 28,255 | | | 29,296 | | 10 years | | | - | | | - | | | | | | Unrealized Gain on Forward Commitments | | | 15,853 | | | 21,433 | | 4 years | | | 10,810 | | | 19,872 | | 4 years | | | | Deferred Investment Tax Credits | | | 122 | | | 382 | | 2 years | | | 43,200 | | | 48,130 | | 23 years | | | | Peak Demand Reduction/Energy Efficiency | | | 746 | | | 907 | | 1 year | | | 15,021 | | | 11,080 | | 1 year | | | | Excess Asset Retirement Obligations for Nuclear | | | | | | | | | | | | | | | | | | | | | Decommissioning Liability | | | - | | | - | | | | | 597,113 | | | 435,717 | | (b) | | | | Spent Nuclear Fuel Liability | | | - | | | - | | | | | 43,416 | | | 42,898 | | (b) | | | | Over-Recovery of PJM Expense | | | - | | | - | | | | | 13,924 | | | - | | 2 years | | | | Off-system Sales Margin Sharing | | | - | | | - | | | | | - | | | 7,611 | | | | | | Other Regulatory Liabilities Being Paid | | | 414 | | | - | | various | | | 23 | | | 1,744 | | various | Total Regulatory Liabilities Being Paid | | | 630,976 | | | 607,431 | | | | | 1,112,532 | | | 948,168 | | | | | | | | | | | | | | | | | | | | Total Noncurrent Regulatory Liabilities and | | | | | | | | | | | | | | | | | | Deferred Investment Tax Credits | | $ | 631,225 | | $ | 607,680 | | | | $ | 1,112,645 | | $ | 948,292 | | | | | | | | | | | | | | | | | | | | (a) | | Relieved as removal costs are incurred. | (b) | | Relieved when plant is decommissioned. |
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Indiana Michigan Power Co [Member]
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Effects of Regulation |
4. EFFECTS OF REGULATION Regulated Generating Units to be Retired Before or During 2016 The following regulated generating units are probable of abandonment. Accordingly, CWIP and Plant in Service has been reclassified as Other Property, Plant and Equipment on the balance sheet as of December 31, 2013. The following table summarizes the plant investment and cost of removal, currently being recovered, for each generating unit as of December 31, 2013. Plant Name and Unit | | Company | | | Gross Investment | | | Accumulated Depreciation | | | Net Investment | | | Cost of Removal Regulatory Liability | | Expected Retirement Date | | Remaining Recovery Period | | | | | | | | | | | | | | | (in thousands) | | | | | Tanners Creek Plant, | | I&M | | $ | 681,490 | | $ | 353,800 | | $ | 327,690 | | $ | 87,102 | | 2015 | | 17 years | Units 1-4 | | | | | | | | | | | | | | | | | | | Northeastern Station, | | PSO | | | 181,652 | | | 88,836 | | | 92,816 | | | 11,142 | | 2016 | | 27 years | Unit 4 | | | | | | | | | | | | | | | | | | | Welsh Plant, Unit 2 | | SWEPCo | | | 174,919 | | | 92,973 | | | 81,946 | | | 19,054 | | 2016 | | 27 years | Total | | | | $ | 1,038,061 | | $ | 535,609 | | $ | 502,452 | | $ | 117,298 | | | | |
Regulatory Assets Regulatory assets and liabilities are comprised of the following items: | | | | | | | APCo | | I&M | | | | | | | | | | Remaining | | | | Remaining | | | | | | | | December 31, | | Recovery | | December 31, | | Recovery | Regulatory Assets: | | 2013 | | 2012 | | Period | | 2013 | | 2012 | | Period | | | (in thousands) | | | | (in thousands) | | | Current Regulatory Assets | | | | | | | | | | | | | | | | | Under-recovered Fuel Costs - earns a return | | $ | 39,811 | | $ | 74,906 | | 1 year | | $ | - | | $ | 3,029 | | | Under-recovered Fuel Costs - does not earn a return | | | - | | | - | | | | | 3,397 | | | 1,647 | | 1 year | Total Current Regulatory Assets | | $ | 39,811 | | $ | 74,906 | | | | $ | 3,397 | | $ | 4,676 | | | | | | | | | | | | | | | | | | | | Noncurrent Regulatory Assets | | | | | | | | | | | | | | | | | Regulatory assets not yet being recovered pending | | | | | | | | | | | | | | | | | | future proceedings to determine the recovery | | | | | | | | | | | | | | | | | | method and timing: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Regulatory Assets Currently Not Earning a Return | | | | | | | | | | | | | | | | | | | | Storm Related Costs | | $ | 65,206 | | $ | 94,458 | | | | $ | 1,836 | | $ | - | | | | | | Expanded Net Energy Charge - Coal Inventory | | | 20,528 | | | - | | | | | - | | | - | | | | | | Mountaineer Carbon Capture and Storage | | | | | | | | | | | | | | | | | | | | | Product Validation Facility | | | 13,264 | | | 14,155 | | | | | - | | | - | | | | | | Virginia Demand Response Program Costs | | | 5,012 | | | 1,447 | | | | | - | | | - | | | | | | Transmission Agreement Phase-In | | | 3,313 | | | 2,992 | | | | | - | | | - | | | | | | Virginia Environmental Rate Adjustment Clause | | | 2,440 | | | 29,320 | | | | | - | | | - | | | | | | Mountaineer Carbon Capture and Storage | | | | | | | | | | | | | | | | | | | | | Commercial Scale Facility | | | 1,287 | | | 1,287 | | | | | - | | | 1,380 | | | | | | Indiana Under-Recovered Capacity Costs | | | - | | | - | | | | | 21,945 | | | - | | | | | | Indiana Deferred Cook Plant Life Cycle | | | | | | | | | | | | | | | | | | | | | Management Project Costs | | | - | | | - | | | | | 4,093 | | | - | | | | | | Stranded Costs on Abandoned Plants | | | - | | | - | | | | | 3,896 | | | - | | | | | | Dresden Plant Operating Costs | | | - | | | 8,758 | | | | | - | | | - | | | | | | Deferred Wind Power Costs | | | - | | | 5,143 | | | | | - | | | - | | | | | | Litigation Settlement | | | - | | | - | | | | | - | | | 11,098 | | | | | | Other Regulatory Assets Not Yet Being Recovered | | | 168 | | | - | | | | | 3,616 | | | 786 | | | Total Regulatory Assets Not Yet Being Recovered | | | 111,218 | | | 157,560 | | | | | 35,386 | | | 13,264 | | | | | | | | | | | | | | | | | | | | Regulatory assets being recovered: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Regulatory Assets Currently Earning a Return | | | | | | | | | | | | | | | | | | | | Storm Related Costs | | | 17,167 | | | 21,371 | | 5 years | | | - | | | - | | | | | | Unamortized Loss on Reacquired Debt | | | 11,622 | | | 12,969 | | 29 years | | | 21,508 | | | 15,871 | | 19 years | | | | RTO Formation/Integration Costs | | | 3,473 | | | 4,370 | | 6 years | | | 2,544 | | | 3,229 | | 6 years | | | | Cook Plant, Unit 2 Baffle Bolts | | | - | | | - | | | | | 7,248 | | | - | | 25 years | | | | West Virginia Expanded Net Energy Charge | | | - | | | 272,783 | | | | | - | | | - | | | | | | Customer Choice Implementation Costs | | | - | | | - | | | | | - | | | 1,493 | | | | | | Other Regulatory Assets Being Recovered | | | 665 | | | - | | various | | | 522 | | | - | | various | | Regulatory Assets Currently Not Earning a Return | | | | | | | | | | | | | | | | | | | | Income Taxes, Net | | | 531,302 | | | 525,549 | | 26 years | | | 250,478 | | | 222,252 | | 30 years | | | | Pension and OPEB Funded Status | | | 192,464 | | | 312,645 | | 11 years | | | 100,132 | | | 220,797 | | 11 years | | | | Virginia Transmission Rate Adjustment Clause | | | 47,322 | | | 32,992 | | 2 years | | | - | | | - | | | | | | Virginia Environmental Rate Adjustment Clause | | | 27,426 | | | 8,347 | | 1 year | | | - | | | - | | | | | | Postemployment Benefits | | | 19,772 | | | 22,663 | | 5 years | | | 9,096 | | | 8,897 | | 5 years | | | | Storm Related Costs | | | 11,100 | | | 13,712 | | 5 years | | | - | | | - | | | | | | Deferred Restructuring Costs | | | 8,525 | | | 10,531 | | 5 years | | | 2,423 | | | 3,688 | | 2 years | | | | Medicare Subsidy | | | 6,477 | | | - | | 11 years | | | 11,221 | | | - | | 11 years | | | | Litigation Settlement | | | - | | | - | | | | | 10,382 | | | - | | 12 years | | | | Asset Retirement Obligation | | | 6,453 | | | 8,489 | | 4 years | | | 696 | | | 808 | | 7 years | | | | Virginia Generation Rate Adjustment Clause | | | 6,491 | | | 3,469 | | 2 years | | | - | | | - | | | | | | West Virginia Expanded Net Energy Charge | | | - | | | 25,932 | | | | | - | | | - | | | | | | Virginia Environmental and Reliability Costs | | | - | | | 560 | | | | | - | | | - | | | | | | Cook Nuclear Plant Refueling Outage Levelization | | | - | | | - | | | | | 57,979 | | | 26,652 | | 3 years | | | | Peak Demand Reduction/Energy Efficiency | | | - | | | - | | | | | 4,457 | | | 2,608 | | 1 year | | | | Off-system Sales Margin Sharing | | | - | | | - | | | | | 4,409 | | | - | | 1 year | | | | River Transportation Division Expenses | | | - | | | - | | | | | 4,090 | | | 4,576 | | 1 year | | | | Deferred PJM Fees | | | - | | | - | | | | | - | | | 13,998 | | | | | | Other Regulatory Assets Being Recovered | | | 2,413 | | | 1,762 | | various | | | 1,543 | | | 1,886 | | various | Total Regulatory Assets Being Recovered | | | 892,672 | | | 1,278,144 | | | | | 488,728 | | | 526,755 | | | | | | | | | | | | | | | | | | | | Total Noncurrent Regulatory Assets | | $ | 1,003,890 | | $ | 1,435,704 | | | | $ | 524,114 | | $ | 540,019 | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | APCo | | I&M | | | | | | | | | | Remaining | | | | Remaining | | | | | | | | December 31, | | Refund | | December 31, | | Refund | Regulatory Liabilities: | | 2013 | | 2012 | | Period | | 2013 | | 2012 | | Period | | | (in thousands) | | | | (in thousands) | | | Current Regulatory Liabilities | | | | | | | | | | | | | | | | | Over-recovered Fuel Costs - does not pay a return | | $ | 107,048 | | $ | - | | 1 year | | $ | - | | $ | - | | | Over-recovered Fuel Costs - pays a return | | | - | | | - | | | | | 1,976 | | | - | | 1 year | Total Current Regulatory Liabilities | | $ | 107,048 | | $ | - | | | | $ | 1,976 | | $ | - | | | | | | | | | | | | | | | | | | | | Noncurrent Regulatory Liabilities and | | | | | | | | | | | | | | | | | Deferred Investment Tax Credits | | | | | | | | | | | | | | | | | Regulatory liabilities not yet being paid: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Regulatory Liabilities Currently Not Paying a Return | | | | | | | | | | | | | | | | | | | | Other Regulatory Liabilities Not Yet Being Paid | | $ | 249 | | $ | 249 | | | | $ | 113 | | $ | 124 | | | Total Regulatory Liabilities Not Yet Being Paid | | | 249 | | | 249 | | | | | 113 | | | 124 | | | | | | | | | | | | | | | | | | | | | | | | | Regulatory liabilities being paid: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Regulatory Liabilities Currently Paying a Return | | | | | | | | | | | | | | | | | | | | Asset Removal Costs | | | 583,723 | | | 552,590 | | (a) | | | 389,025 | | | 381,116 | | (a) | | | | Deferred Investment Tax Credits | | | 1,863 | | | 2,823 | | 47 years | | | - | | | - | | | | Regulatory Liabilities Currently Not Paying a Return | | | | | | | | | | | | | | | | | | | | Deferred State Income Tax Coal Credits | | | 28,255 | | | 29,296 | | 10 years | | | - | | | - | | | | | | Unrealized Gain on Forward Commitments | | | 15,853 | | | 21,433 | | 4 years | | | 10,810 | | | 19,872 | | 4 years | | | | Deferred Investment Tax Credits | | | 122 | | | 382 | | 2 years | | | 43,200 | | | 48,130 | | 23 years | | | | Peak Demand Reduction/Energy Efficiency | | | 746 | | | 907 | | 1 year | | | 15,021 | | | 11,080 | | 1 year | | | | Excess Asset Retirement Obligations for Nuclear | | | | | | | | | | | | | | | | | | | | | Decommissioning Liability | | | - | | | - | | | | | 597,113 | | | 435,717 | | (b) | | | | Spent Nuclear Fuel Liability | | | - | | | - | | | | | 43,416 | | | 42,898 | | (b) | | | | Over-Recovery of PJM Expense | | | - | | | - | | | | | 13,924 | | | - | | 2 years | | | | Off-system Sales Margin Sharing | | | - | | | - | | | | | - | | | 7,611 | | | | | | Other Regulatory Liabilities Being Paid | | | 414 | | | - | | various | | | 23 | | | 1,744 | | various | Total Regulatory Liabilities Being Paid | | | 630,976 | | | 607,431 | | | | | 1,112,532 | | | 948,168 | | | | | | | | | | | | | | | | | | | | Total Noncurrent Regulatory Liabilities and | | | | | | | | | | | | | | | | | | Deferred Investment Tax Credits | | $ | 631,225 | | $ | 607,680 | | | | $ | 1,112,645 | | $ | 948,292 | | | | | | | | | | | | | | | | | | | | (a) | | Relieved as removal costs are incurred. | (b) | | Relieved when plant is decommissioned. |
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Ohio Power Co [Member]
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Effects of Regulation |
4. EFFECTS OF REGULATION Regulatory Assets Regulatory assets and liabilities are comprised of the following items: | | | | | | | OPCo | | | | | | | | | | Remaining | | | | | | | | December 31, | | Recovery | Regulatory Assets: | | 2013 | | 2012 | | Period | | | (in thousands) | | | Current Regulatory Assets | | | | | | | | | Under-recovered Fuel Costs - does not earn a return | | $ | 15,829 | | $ | - | | 1 year | Total Current Regulatory Assets | | $ | 15,829 | | $ | - | | | | | | | | | | | | | | | | | Noncurrent Regulatory Assets | | | | | | | | | Regulatory assets not yet being recovered pending future proceedings to | | | | | | | | | | determine the recovery method and timing: | | | | | | | | | | | | | | | | | | | Regulatory Assets Currently Earning a Return | | | | | | | | | | | | Ohio Economic Development Rider | | $ | 13,854 | | $ | 13,213 | | | | Regulatory Assets Currently Not Earning a Return | | | | | | | | | | | | Storm Related Costs | | | 57,589 | | | 61,828 | | | | | | Ormet Special Rate Recovery Mechanism | | | 35,631 | | | 5,453 | | | | | | Other Regulatory Assets Not Yet Being Recovered | | | - | | | 30 | | | Total Regulatory Assets Not Yet Being Recovered | | | 107,074 | | | 80,524 | | | | | | | | | | | | Regulatory assets being recovered: | | | | | | | | | | | | | | | | | | | Regulatory Assets Currently Earning a Return | | | | | | | | | | | | Ohio Fuel Adjustment Clause | | | 444,959 | | | 518,595 | | 5 years | | | | Ohio Capacity Deferral | | | 288,060 | | | 65,818 | | 5 years | | | | Ohio Transmission Cost Recovery Rider | | | 86,621 | | | 49,391 | | 2 years | | | | Ohio Distribution Decoupling | | | 31,329 | | | - | | 2 years | | | | Unamortized Loss on Reacquired Debt | | | 13,033 | | | 13,215 | | 25 years | | | | RTO Formation/Integration Costs | | | 5,232 | | | 6,594 | | 6 years | | | | Economic Development Rider | | | 791 | | | 5,488 | | 1 year | | | | Ohio Deferred Asset Recovery Rider | | | - | | | 152,039 | | | | Regulatory Assets Currently Not Earning a Return | | | | | | | | | | | | Pension and OPEB Funded Status | | | 188,722 | | | 309,685 | | 11 years | | | | Income Taxes, Net | | | 150,183 | | | 190,685 | | 29 years | | | | Peak Demand Reduction/Energy Efficiency | | | 18,529 | | | - | | 2 years | | | | Medicare Subsidy | | | 11,354 | | | - | | 11 years | | | | Under-Recovered Distribution Investment Rider | | | 8,677 | | | 1,304 | | 1 year | | | | Under-Recovered gridSMART® Costs | | | 8,396 | | | - | | 2 years | | | | Enhanced Service Reliability Plan | | | 6,836 | | | 557 | | 2 years | | | | Postemployment Benefits | | | 6,198 | | | 7,658 | | 5 years | | | | Partnership with Ohio Contribution | | | 1,410 | | | 2,405 | | 2 years | | | | Ohio Distribution Decoupling | | | - | | | 16,198 | | | | | | Other Regulatory Assets Being Recovered | | | 1,293 | | | 810 | | various | Total Regulatory Assets Being Recovered | | | 1,271,623 | | | 1,340,442 | | | | | | | | | | | | Total Noncurrent Regulatory Assets | | $ | 1,378,697 | | $ | 1,420,966 | | | | | | | | | | | | | | | | |
| | | | | | | OPCo | | | | | | | | | | Remaining | | | | | | | | December 31, | | Refund | | | 2013 | | 2012 | | Period | Regulatory Liabilities: | | (in thousands) | | | | | | | | | | | | | | | | | Current Regulatory Liabilities | | | | | | | | | Over-recovered Fuel Costs - does not pay a return | | $ | - | | $ | 14,848 | | | Total Current Regulatory Liabilities | | $ | - | | $ | 14,848 | | | | | | | | | | | | Noncurrent Regulatory Liabilities and Deferred Investment Tax Credits | | | | | | | | | Regulatory liabilities not yet being paid: | | | | | | | | | | | | | | | | | | | | | | | | Regulatory Liabilities Currently Paying a Return | | | | | | | | | | | | IGCC Preconstruction Costs | | $ | 4,782 | | $ | 4,411 | | | | Regulatory Liabilities Currently Not Paying a Return | | | | | | | | | | | | Other Regulatory Liabilities Not Yet Being Paid | | | 216 | | | 216 | | | Total Regulatory Liabilities Not Yet Being Paid | | | 4,998 | | | 4,627 | | | | | | | | | | | | | | | | | Regulatory liabilities being paid: | | | | | | | | | | | | | | | | | | | Regulatory Liabilities Currently Paying a Return | | | | | | | | | | | | Asset Removal Costs | | | 421,061 | | | 416,461 | | (a) | | | | Deferred Investment Tax Credits | | | 165 | | | 322 | | 8 years | | Regulatory Liabilities Currently Not Paying a Return | | | | | | | | | | | | Deferred Asset Phase-In Rider | | | 4,334 | | | - | | 7 years | | | | Unrealized Gain on Forward Commitments | | | 2,920 | | | - | | 1 year | | | | Low Income Customers/Economic Recovery | | | 1,724 | | | 2,243 | | 2 years | | | | Deferred Investment Tax Credits | | | 224 | | | 11,321 | | 7 years | | | | Over-Recovery of Costs Related to gridSMART® | | | 73 | | | 3,501 | | 2 years | | | | Peak Demand Reduction/Energy Efficiency | | | - | | | 12,596 | | | Total Regulatory Liabilities Being Paid | | | 430,501 | | | 446,444 | | | | | | | | | | | | Total Noncurrent Regulatory Liabilities and | | | | | | | | | | Deferred Investment Tax Credits | | $ | 435,499 | | $ | 451,071 | | | | | | | | | | | | (a) | | Relieved as removal costs are incurred. |
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Public Service Co of Oklahoma [Member]
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Effects of Regulation |
4. EFFECTS OF REGULATION Regulated Generating Units to be Retired Before or During 2016 The following regulated generating units are probable of abandonment. Accordingly, CWIP and Plant in Service has been reclassified as Other Property, Plant and Equipment on the balance sheet as of December 31, 2013. The following table summarizes the plant investment and cost of removal, currently being recovered, for each generating unit as of December 31, 2013. Plant Name and Unit | | Company | | | Gross Investment | | | Accumulated Depreciation | | | Net Investment | | | Cost of Removal Regulatory Liability | | Expected Retirement Date | | Remaining Recovery Period | | | | | | | | | | | | | | | (in thousands) | | | | | Tanners Creek Plant, | | I&M | | $ | 681,490 | | $ | 353,800 | | $ | 327,690 | | $ | 87,102 | | 2015 | | 17 years | Units 1-4 | | | | | | | | | | | | | | | | | | | Northeastern Station, | | PSO | | | 181,652 | | | 88,836 | | | 92,816 | | | 11,142 | | 2016 | | 27 years | Unit 4 | | | | | | | | | | | | | | | | | | | Welsh Plant, Unit 2 | | SWEPCo | | | 174,919 | | | 92,973 | | | 81,946 | | | 19,054 | | 2016 | | 27 years | Total | | | | $ | 1,038,061 | | $ | 535,609 | | $ | 502,452 | | $ | 117,298 | | | | |
Regulatory Assets Regulatory assets and liabilities are comprised of the following items: | | | | | | | PSO | | SWEPCo | | | | | | | | | | Remaining | | | | Remaining | | | | | | | | December 31, | | Recovery | | December 31, | | Recovery | | | | | | | | 2013 | | 2012 | | Period | | 2013 | | 2012 | | Period | Regulatory Assets: | | (in thousands) | | | | (in thousands) | | | | | | | | | | | | | | | | | | | | Current Regulatory Assets | | | | | | | | | | | | | | | | | Under-recovered Fuel Costs - earns a return | | $ | 3,298 | | $ | - | | 1 year | | $ | 17,949 | | $ | 8,527 | | 1 year | Total Current Regulatory Assets | | $ | 3,298 | | $ | - | | | | $ | 17,949 | | $ | 8,527 | | | | | | | | | | | | | | | | | | | | | | | | | Noncurrent Regulatory Assets | | | | | | | | | | | | | | | | | Regulatory assets not yet being recovered pending | | | | | | | | | | | | | | | | | | future proceedings to determine the recovery | | | | | | | | | | | | | | | | | | method and timing: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Regulatory Assets Currently Not Earning a Return | | | | | | | | | | | | | | | | | | | | Storm Related Costs | | $ | 18,743 | | $ | - | | | | $ | - | | $ | - | | | | | | Rate Case Expense | | | - | | | - | | | | | 7,934 | | | 4,517 | | | | | | Mountaineer Carbon Capture and Storage | | | | | | | | | | | | | | | | | | | | | Commercial Scale Facility | | | - | | | - | | | | | 1,143 | | | 2,295 | | | | | | Other Regulatory Assets Not Yet Being Recovered | | | 845 | | | 423 | | | | | 1,951 | | | 2,188 | | | Total Regulatory Assets Not Yet Being Recovered | | | 19,588 | | | 423 | | | | | 11,028 | | | 9,000 | | | | | | | | | | | | | | | | | | | | | | | | | Regulatory assets being recovered: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Regulatory Assets Currently Earning a Return | | | | | | | | | | | | | | | | | | | | Red Rock Generating Facility | | | 9,728 | | | 9,954 | | 43 years | | | - | | | - | | | | | | Unamortized Loss on Reacquired Debt | | | 9,455 | | | 10,923 | | 19 years | | | 8,165 | | | 9,379 | | 30 years | | | | Storm Related Costs | | | - | | | 14,172 | | | | | - | | | 337 | | | | | | Acquisition of Valley Electric Membership | | | | | | | | | | | | | | | | | | | | | Corporation (VEMCO) | | | - | | | - | | | | | 4,100 | | | 6,443 | | 2 years | | Regulatory Assets Currently Not Earning a Return | | | | | | | | | | | | | | | | | | | | Pension and OPEB Funded Status | | | 77,171 | | | 133,404 | | 11 years | | | 89,672 | | | 143,226 | | 11 years | | | | Peak Demand Reduction/Energy Efficiency | | | 11,333 | | | 6,248 | | 1 year | | | 2,584 | | | 1,467 | | 1 year | | | | Vegetation Management | | | 13,963 | | | 13,388 | | 1 year | | | - | | | - | | | | | | Base Load Purchase Power Contract | | | 6,400 | | | - | | 1 year | | | - | | | - | | | | | | Medicare Subsidy | | | 5,389 | | | - | | 11 years | | | 5,866 | | | - | | 11 years | | | | Deferral of Major Generation Overhauls | | | 2,933 | | | 4,533 | | 4 years | | | - | | | - | | | | | | Income Taxes, Net | | | 88 | | | 3,785 | | 34 years | | | 247,827 | | | 230,220 | | 31 years | | | | Unrealized Loss on Forward Commitments | | | 2 | | | 5,347 | | 1 year | | | 3 | | | 427 | | 1 year | | | | Other Regulatory Assets Being Recovered | | | 640 | | | 151 | | various | | | 660 | | | 2,779 | | various | Total Regulatory Assets Being Recovered | | | 137,102 | | | 201,905 | | | | | 358,877 | | | 394,278 | | | | | | | | | | | | | | | | | | | | Total Noncurrent Regulatory Assets (a) | | $ | 156,690 | | $ | 202,328 | | | | $ | 369,905 | | $ | 403,278 | | | | | | | | | | | | | | | | | | | | | | | | | (a) | | Additionally, as of December 31, 2013, SWEPCo has recorded approximately $42 million in Customer Accounts Receivable on the balance sheet to reflect revenues, retroactive to January 2013, resulting from the PUCT decision in the Texas Base Rate Case. These amounts will be collected from customers through a rider currently being billed to customers. |
| | | | | | | PSO | | SWEPCo | | | | | | | | | | Remaining | | | | Remaining | | | | | | | | December 31, | | Refund | | December 31, | | Refund | | | | | | | | 2013 | | 2012 | | Period | | 2013 | | 2012 | | Period | Regulatory Liabilities: | | (in thousands) | | | | (in thousands) | | | | | | | | | | | | | | | | | | | | | | | | | Current Regulatory Liabilities | | | | | | | | | | | | | | | | | Over-recovered Fuel Costs - pays a return | | $ | - | | $ | 7,945 | | | | $ | 7,275 | | $ | 16,761 | | 1 year | Total Current Regulatory Liabilities | | $ | - | | $ | 7,945 | | | | $ | 7,275 | | $ | 16,761 | | | | | | | | | | | | | | | | | | | | Noncurrent Regulatory Liabilities and | | | | | | | | | | | | | | | | | Deferred Investment Tax Credits | | | | | | | | | | | | | | | | | Regulatory liabilities not yet being paid: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Regulatory Liabilities Currently Paying a Return | | | | | | | | | | | | | | | | | | | | Louisiana Refundable Construction Financing Costs | | $ | - | | $ | - | | | | $ | - | | $ | 96,094 | | | | Regulatory Liabilities Currently Not Paying a Return | | | | | | | | | | | | | | | | | | | | Over-recovery of Costs Related to gridSMART® | | | 2,635 | | | 3,964 | | | | | - | | | - | | | | | | Storm Related Costs | | | - | | | 3,207 | | | | | - | | | - | | | | | | Other Regulatory Liabilities Not Yet Being Paid | | | 248 | | | 1,613 | | | | | - | | | - | | | Total Regulatory Liabilities Not Yet Being Paid | | | 2,883 | | | 8,784 | | | | | - | | | 96,094 | | | | | | | | | | | | | | | | | | | | | | | | | Regulatory liabilities being paid: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Regulatory Liabilities Currently Paying a Return | | | | | | | | | | | | | | | | | | | | Asset Removal Costs | | | 276,418 | | | 280,446 | | (a) | | | 372,381 | | | 362,838 | | (a) | | | | Louisiana Refundable Construction Financing Costs | | | - | | | - | | | | | 77,664 | | | - | | 5 years | | | | Excess Earnings | | | - | | | - | | | | | 2,903 | | | 2,975 | | 40 years | | | | Other Regulatory Liabilities Being Paid | | | - | | | - | | | | | 1,286 | | | 838 | | various | | Regulatory Liabilities Currently Not Paying a Return | | | | | | | | | | | | | | | | | | | | Deferred Investment Tax Credits | | | 46,753 | | | 42,345 | | 51 years | | | 11,207 | | | 12,769 | | 17 years | | | | Vegetation Management | | | - | | | - | | | | | 4,002 | | | 130 | | 1 year | | | | Peak Demand Reduction/Energy Efficiency | | | - | | | 2,915 | | | | | 901 | | | - | | 1 year | | | | Base Load Purchase Power Contract | | | - | | | 8,484 | | | | | - | | | - | | | | | | Other Regulatory Liabilities Being Paid | | | 1,619 | | | 1,843 | | various | | | 1,784 | | | 827 | | various | Total Regulatory Liabilities Being Paid | | | 324,790 | | | 336,033 | | | | | 472,128 | | | 380,377 | | | | | | | | | | | | | | | | | | | | Total Noncurrent Regulatory Liabilities and | | | | | | | | | | | | | | | | | | Deferred Investment Tax Credits | | $ | 327,673 | | $ | 344,817 | | | | $ | 472,128 | | $ | 476,471 | | | | | | | | | | | | | | | | | | | | (a) | | Relieved as removal costs are incurred. |
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Southwestern Electric Power Co [Member]
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Effects of Regulation |
4. EFFECTS OF REGULATION Regulated Generating Units to be Retired Before or During 2016 The following regulated generating units are probable of abandonment. Accordingly, CWIP and Plant in Service has been reclassified as Other Property, Plant and Equipment on the balance sheet as of December 31, 2013. The following table summarizes the plant investment and cost of removal, currently being recovered, for each generating unit as of December 31, 2013. Plant Name and Unit | | Company | | | Gross Investment | | | Accumulated Depreciation | | | Net Investment | | | Cost of Removal Regulatory Liability | | Expected Retirement Date | | Remaining Recovery Period | | | | | | | | | | | | | | | (in thousands) | | | | | Tanners Creek Plant, | | I&M | | $ | 681,490 | | $ | 353,800 | | $ | 327,690 | | $ | 87,102 | | 2015 | | 17 years | Units 1-4 | | | | | | | | | | | | | | | | | | | Northeastern Station, | | PSO | | | 181,652 | | | 88,836 | | | 92,816 | | | 11,142 | | 2016 | | 27 years | Unit 4 | | | | | | | | | | | | | | | | | | | Welsh Plant, Unit 2 | | SWEPCo | | | 174,919 | | | 92,973 | | | 81,946 | | | 19,054 | | 2016 | | 27 years | Total | | | | $ | 1,038,061 | | $ | 535,609 | | $ | 502,452 | | $ | 117,298 | | | | |
Regulatory Assets Regulatory assets and liabilities are comprised of the following items: | | | | | | | PSO | | SWEPCo | | | | | | | | | | Remaining | | | | Remaining | | | | | | | | December 31, | | Recovery | | December 31, | | Recovery | | | | | | | | 2013 | | 2012 | | Period | | 2013 | | 2012 | | Period | Regulatory Assets: | | (in thousands) | | | | (in thousands) | | | | | | | | | | | | | | | | | | | | Current Regulatory Assets | | | | | | | | | | | | | | | | | Under-recovered Fuel Costs - earns a return | | $ | 3,298 | | $ | - | | 1 year | | $ | 17,949 | | $ | 8,527 | | 1 year | Total Current Regulatory Assets | | $ | 3,298 | | $ | - | | | | $ | 17,949 | | $ | 8,527 | | | | | | | | | | | | | | | | | | | | | | | | | Noncurrent Regulatory Assets | | | | | | | | | | | | | | | | | Regulatory assets not yet being recovered pending | | | | | | | | | | | | | | | | | | future proceedings to determine the recovery | | | | | | | | | | | | | | | | | | method and timing: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Regulatory Assets Currently Not Earning a Return | | | | | | | | | | | | | | | | | | | | Storm Related Costs | | $ | 18,743 | | $ | - | | | | $ | - | | $ | - | | | | | | Rate Case Expense | | | - | | | - | | | | | 7,934 | | | 4,517 | | | | | | Mountaineer Carbon Capture and Storage | | | | | | | | | | | | | | | | | | | | | Commercial Scale Facility | | | - | | | - | | | | | 1,143 | | | 2,295 | | | | | | Other Regulatory Assets Not Yet Being Recovered | | | 845 | | | 423 | | | | | 1,951 | | | 2,188 | | | Total Regulatory Assets Not Yet Being Recovered | | | 19,588 | | | 423 | | | | | 11,028 | | | 9,000 | | | | | | | | | | | | | | | | | | | | | | | | | Regulatory assets being recovered: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Regulatory Assets Currently Earning a Return | | | | | | | | | | | | | | | | | | | | Red Rock Generating Facility | | | 9,728 | | | 9,954 | | 43 years | | | - | | | - | | | | | | Unamortized Loss on Reacquired Debt | | | 9,455 | | | 10,923 | | 19 years | | | 8,165 | | | 9,379 | | 30 years | | | | Storm Related Costs | | | - | | | 14,172 | | | | | - | | | 337 | | | | | | Acquisition of Valley Electric Membership | | | | | | | | | | | | | | | | | | | | | Corporation (VEMCO) | | | - | | | - | | | | | 4,100 | | | 6,443 | | 2 years | | Regulatory Assets Currently Not Earning a Return | | | | | | | | | | | | | | | | | | | | Pension and OPEB Funded Status | | | 77,171 | | | 133,404 | | 11 years | | | 89,672 | | | 143,226 | | 11 years | | | | Peak Demand Reduction/Energy Efficiency | | | 11,333 | | | 6,248 | | 1 year | | | 2,584 | | | 1,467 | | 1 year | | | | Vegetation Management | | | 13,963 | | | 13,388 | | 1 year | | | - | | | - | | | | | | Base Load Purchase Power Contract | | | 6,400 | | | - | | 1 year | | | - | | | - | | | | | | Medicare Subsidy | | | 5,389 | | | - | | 11 years | | | 5,866 | | | - | | 11 years | | | | Deferral of Major Generation Overhauls | | | 2,933 | | | 4,533 | | 4 years | | | - | | | - | | | | | | Income Taxes, Net | | | 88 | | | 3,785 | | 34 years | | | 247,827 | | | 230,220 | | 31 years | | | | Unrealized Loss on Forward Commitments | | | 2 | | | 5,347 | | 1 year | | | 3 | | | 427 | | 1 year | | | | Other Regulatory Assets Being Recovered | | | 640 | | | 151 | | various | | | 660 | | | 2,779 | | various | Total Regulatory Assets Being Recovered | | | 137,102 | | | 201,905 | | | | | 358,877 | | | 394,278 | | | | | | | | | | | | | | | | | | | | Total Noncurrent Regulatory Assets (a) | | $ | 156,690 | | $ | 202,328 | | | | $ | 369,905 | | $ | 403,278 | | | | | | | | | | | | | | | | | | | | | | | | | (a) | | Additionally, as of December 31, 2013, SWEPCo has recorded approximately $42 million in Customer Accounts Receivable on the balance sheet to reflect revenues, retroactive to January 2013, resulting from the PUCT decision in the Texas Base Rate Case. These amounts will be collected from customers through a rider currently being billed to customers. |
| | | | | | | PSO | | SWEPCo | | | | | | | | | | Remaining | | | | Remaining | | | | | | | | December 31, | | Refund | | December 31, | | Refund | | | | | | | | 2013 | | 2012 | | Period | | 2013 | | 2012 | | Period | Regulatory Liabilities: | | (in thousands) | | | | (in thousands) | | | | | | | | | | | | | | | | | | | | | | | | | Current Regulatory Liabilities | | | | | | | | | | | | | | | | | Over-recovered Fuel Costs - pays a return | | $ | - | | $ | 7,945 | | | | $ | 7,275 | | $ | 16,761 | | 1 year | Total Current Regulatory Liabilities | | $ | - | | $ | 7,945 | | | | $ | 7,275 | | $ | 16,761 | | | | | | | | | | | | | | | | | | | | Noncurrent Regulatory Liabilities and | | | | | | | | | | | | | | | | | Deferred Investment Tax Credits | | | | | | | | | | | | | | | | | Regulatory liabilities not yet being paid: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Regulatory Liabilities Currently Paying a Return | | | | | | | | | | | | | | | | | | | | Louisiana Refundable Construction Financing Costs | | $ | - | | $ | - | | | | $ | - | | $ | 96,094 | | | | Regulatory Liabilities Currently Not Paying a Return | | | | | | | | | | | | | | | | | | | | Over-recovery of Costs Related to gridSMART® | | | 2,635 | | | 3,964 | | | | | - | | | - | | | | | | Storm Related Costs | | | - | | | 3,207 | | | | | - | | | - | | | | | | Other Regulatory Liabilities Not Yet Being Paid | | | 248 | | | 1,613 | | | | | - | | | - | | | Total Regulatory Liabilities Not Yet Being Paid | | | 2,883 | | | 8,784 | | | | | - | | | 96,094 | | | | | | | | | | | | | | | | | | | | | | | | | Regulatory liabilities being paid: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Regulatory Liabilities Currently Paying a Return | | | | | | | | | | | | | | | | | | | | Asset Removal Costs | | | 276,418 | | | 280,446 | | (a) | | | 372,381 | | | 362,838 | | (a) | | | | Louisiana Refundable Construction Financing Costs | | | - | | | - | | | | | 77,664 | | | - | | 5 years | | | | Excess Earnings | | | - | | | - | | | | | 2,903 | | | 2,975 | | 40 years | | | | Other Regulatory Liabilities Being Paid | | | - | | | - | | | | | 1,286 | | | 838 | | various | | Regulatory Liabilities Currently Not Paying a Return | | | | | | | | | | | | | | | | | | | | Deferred Investment Tax Credits | | | 46,753 | | | 42,345 | | 51 years | | | 11,207 | | | 12,769 | | 17 years | | | | Vegetation Management | | | - | | | - | | | | | 4,002 | | | 130 | | 1 year | | | | Peak Demand Reduction/Energy Efficiency | | | - | | | 2,915 | | | | | 901 | | | - | | 1 year | | | | Base Load Purchase Power Contract | | | - | | | 8,484 | | | | | - | | | - | | | | | | Other Regulatory Liabilities Being Paid | | | 1,619 | | | 1,843 | | various | | | 1,784 | | | 827 | | various | Total Regulatory Liabilities Being Paid | | | 324,790 | | | 336,033 | | | | | 472,128 | | | 380,377 | | | | | | | | | | | | | | | | | | | | Total Noncurrent Regulatory Liabilities and | | | | | | | | | | | | | | | | | | Deferred Investment Tax Credits | | $ | 327,673 | | $ | 344,817 | | | | $ | 472,128 | | $ | 476,471 | | | | | | | | | | | | | | | | | | | | (a) | | Relieved as removal costs are incurred. |
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