Regulatory Assets and Liabilities

Regulatory assets and liabilities include the following:



Deferred cost of fuel used in electric generation⁽¹⁾	$	115	$	79
Deferred rate adjustment clause costs⁽²⁾	85		124
Deferred nuclear refueling outage costs⁽³⁾	76		44
Unrecovered gas costs⁽⁴⁾	1		36
Other	63		64
Regulatory assets-current⁽⁵⁾	340		347
Unrecognized pension and other postretirement benefit costs⁽⁶⁾	1,017		1,050
Deferred rate adjustment clause costs⁽²⁾	300		250
Income taxes recoverable through future rates⁽⁷⁾	137		133
Derivatives⁽⁸⁾	56		101
Other	115		108
Regulatory assets-non-current	1,625		1,642
Total regulatory assets	$	1,965	$	1,989
Regulatory liabilities:
PIPP⁽⁹⁾	$	53	$	71
Other	52		99
Regulatory liabilities-current⁽¹⁰⁾	105		170
Provision for future cost of removal and AROs⁽¹¹⁾	1,103		1,072
Nuclear decommissioning trust⁽¹²⁾	813		815
Other	214		104
Regulatory liabilities-non-current	2,130		1,991
Total regulatory liabilities	$	2,235	$	2,161
Virginia Power
Regulatory assets:
Deferred cost of fuel used in electric generation⁽¹⁾	$	115	$	79
Deferred nuclear refueling outage costs⁽³⁾	76		44
Deferred rate adjustment clause costs⁽²⁾	67		117
Other	59		58
Regulatory assets-current	317		298
Deferred rate adjustment clause costs⁽²⁾	223		179
Income taxes recoverable through future rates⁽⁷⁾	104		100
Derivatives⁽⁸⁾	56		101
Other	64		59
Regulatory assets-non-current	447		439
Total regulatory assets	$	764	$	737
Regulatory liabilities:
Other	$	31	$	90
Regulatory liabilities-current⁽¹⁰⁾	31		90
Provision for future cost of removal⁽¹¹⁾	865		852
Nuclear decommissioning trust⁽¹²⁾	813		815
Other	96		16
Regulatory liabilities-non-current	1,774		1,683
Total regulatory liabilities	$	1,805	$	1,773
Dominion Gas
Regulatory assets:
Deferred rate adjustment clause costs⁽²⁾	$	18	$	7



Unrecovered gas costs⁽⁴⁾	1		29
Other	1		2
Regulatory assets-current⁽⁵⁾	20		38
Unrecognized pension and other postretirement benefit costs⁽⁶⁾	235		242
Deferred rate adjustment clause costs⁽²⁾	77		71
Income taxes recoverable through future rates⁽⁷⁾	24		24
Other	45		42
Regulatory assets-non-current	381		379
Total regulatory assets	$	401	$	417
Regulatory liabilities:
PIPP⁽⁹⁾	$	53	$	71
Other	14		4
Regulatory liabilities-current⁽¹⁰⁾	67		75
Provision for future cost of removal and AROs⁽¹¹⁾	175		172
Other	32		20
Regulatory liabilities-non-current⁽¹³⁾	207		192
Total regulatory liabilities	$	274	$	267


(1)	Primarily reflects deferred fuel expenses for the Virginia jurisdiction of Virginia Power's generation operations. See Note 12 for more information.


(2)	Reflects deferrals under the electric transmission FERC formula rate and the deferral of costs associated with certain current and prospective rider projects for Virginia Power. Reflects deferrals of costs associated with certain current and prospective rider projects for Dominion Gas. See Note 12 for more information.


(3)	Legislation enacted in Virginia in April 2014 requires Virginia Power to defer operation and maintenance costs incurred in connection with the refueling of any nuclear-powered generating plant. These deferred costs will be amortized over the refueling cycle, not to exceed 18 months.


(4)	Reflects unrecovered gas costs at regulated gas operations, which are recovered through filings with the applicable regulatory authority.


(5)	Current regulatory assets are presented in other current assets in Dominion's and Dominion Gas' Consolidated Balance Sheets.


(6)	Represents unrecognized pension and other postretirement employee benefit costs expected to be recovered through future rates generally over the expected remaining service period of plan participants by certain of Dominion's and Dominion Gas' rate-regulated subsidiaries.


(7)	Amounts to be recovered through future rates to pay income taxes that become payable when rate revenue is provided to recover AFUDC-equity and depreciation of property, plant and equipment for which deferred income taxes were not recognized for ratemaking purposes, including amounts attributable to tax rate changes.


(8)	For jurisdictions subject to cost-based rate regulation, changes in the fair value of derivative instruments result in the recognition of regulatory assets or regulatory liabilities as they are expected to be recovered from or passed on to customers based on the ultimate settlement amount of the derivative.


(9)	Under PIPP, eligible customers can make reduced payments based on their ability to pay. The difference between the customer's total bill and the PIPP plan amount is deferred and collected or returned annually under the PIPP rider according to East Ohio tariff provisions.


(10)	Current regulatory liabilities are presented in other current liabilities in the Companies' Consolidated Balance Sheets.


(11)	Rates charged to customers by the Companies' regulated businesses include a provision for the cost of future activities to remove assets that are expected to be incurred at the time of retirement.


(12)	Primarily reflects a regulatory liability representing amounts collected from Virginia jurisdictional customers and placed in external trusts (including income, losses and changes in fair value thereon) for the future decommissioning of Virginia Power's utility nuclear generation stations, in excess of the related AROs.


(13)	Noncurrent regulatory liabilities are presented in other deferred credits and other liabilities in Dominion Gas' Consolidated Balance Sheets.

At June 30, 2015, approximately $123 million of Dominion's, $105 million of Virginia Power's and $18 million of Dominion Gas' regulatory assets represented past expenditures on which they do not currently earn a return. These expenditures are expected to be recovered within the next two years.

June 30, 2015

December 31, 2014

(millions)

Regulatory assets: