OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES

Inventories. Inventories are stated at the lower of cost or market. Amounts removed from inventory are recorded on an average cost basis.



Inventories	September 30, 2013		December 31, 2012
Millions
Fuel		$18.3		$28.0
Materials and Supplies	46.4		41.8
Total Inventories		$64.7		$69.8



Prepayments and Other Current Assets	September 30, 2013		December 31, 2012
Millions
Deferred Fuel Adjustment Clause		$22.8		$22.5
Other	6.4		11.1
Total Prepayments and Other Current Assets		$29.2		$33.6



Other Current Liabilities	September 30, 2013		December 31, 2012
Millions
Customer Deposits		$27.5		$28.8
Other	31.8		33.8
Total Other Current Liabilities		$59.3		$62.6



Other Non-Current Liabilities	September 30, 2013		December 31, 2012
Millions
Asset Retirement Obligation		$82.6		$77.9
Other	46.5		45.4
Total Other Non-Current Liabilities		$129.1		$123.3

NOTE 1. OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Continued)

Supplemental Statement of Cash Flows Information.



For the Nine Months Ended September 30,	2013		2012
Millions
Cash Paid During the Period for Interest – Net of Amounts Capitalized		$36.0		$32.3
Cash Paid During the Period for Income Taxes		$0.6		$0.2
Noncash Investing and Financing Activities
Decrease in Accounts Payable for Capital Additions to Property, Plant and Equipment	$(10.0)		$(13.1)
Capitalized Asset Retirement Costs		$1.9		$2.4
AFUDC – Equity		$3.4		$3.4

Subsequent Events. The Company performed an evaluation of subsequent events for potential recognition and disclosure through the time of the financial statements issuance.

New Accounting Standards.

Amounts Reclassified Out of Accumulated Other Comprehensive Income. In February 2013, the FASB issued an accounting standard update on disclosure of amounts reclassified out of accumulated other comprehensive income. This update requires entities to provide information about amounts reclassified out of accumulated other comprehensive income by component. In addition, entities are required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under GAAP to be reclassified in their entirety to net income, entities are required to cross-reference to other disclosures required under GAAP that provide additional detail on these amounts. This guidance, which was adopted beginning with the quarter ended March 31, 2013, and required additional disclosures, did not have an impact on our consolidated financial position, results of operations, or cash flows. (See Note 11. Reclassifications Out of Accumulated Other Comprehensive Income (Loss).)

Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. In July 2013, the FASB issued an accounting standard update on the financial statement presentation of unrecognized tax benefits when an NOL carryforward, a similar tax loss, or a tax credit carryforward exists. An unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date to settle any additional income taxes that would result from the disallowance of a tax position or the tax law does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. This guidance will be effective beginning with the quarter ending March 31, 2014 (early adoption is permitted), and is not expected to have a material impact on our consolidated financial position, results of operations, or cash flows.