Regulatory Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2016

Regulatory Assets and Liabilities Disclosure [Abstract]

Regulatory assets and liabilities include the following:



	September 30, 2016		December 31, 2015
(millions)
Dominion
Regulatory assets:
Deferred rate adjustment clause costs⁽¹⁾	$	101	$	90
Deferred nuclear refueling outage costs⁽²⁾	60		75
Deferred cost of fuel used in electric generation⁽³⁾	3		111
Other	86		75
Regulatory assets-current⁽⁴⁾	250		351
Unrecognized pension and other postretirement benefit costs⁽⁵⁾	981		1,015
Derivatives⁽⁶⁾	366		110
Deferred rate adjustment clause costs⁽¹⁾	271		295
PJM transmission rates⁽⁷⁾	192		192
Income taxes recoverable through future rates⁽⁸⁾	130		126
Other	203		127
Regulatory assets-non-current	2,143		1,865
Total regulatory assets	$	2,393	$	2,216
Regulatory liabilities:
Deferred cost of fuel used in electric generation⁽³⁾	$	62	$	—
PIPP⁽⁹⁾	26		46
Other	36		54
Regulatory liabilities-current⁽¹⁰⁾	124		100



Provision for future cost of removal and AROs⁽¹¹⁾	1,412		1,120
Nuclear decommissioning trust⁽¹²⁾	882		804
Derivatives⁽⁶⁾	76		79
Deferred cost of fuel used in electric generation⁽³⁾	27		97
Other	200		185
Regulatory liabilities-non-current	2,597		2,285
Total regulatory liabilities	$	2,721	$	2,385
Virginia Power
Regulatory assets:
Deferred rate adjustment clause costs⁽¹⁾	$	85	$	80
Deferred nuclear refueling outage costs⁽²⁾	60		75
Deferred cost of fuel used in electric generation⁽³⁾	3		111
Other	49		60
Regulatory assets-current	197		326
Derivatives⁽⁶⁾	366		110
PJM transmission rates⁽⁷⁾	192		192
Deferred rate adjustment clause costs⁽¹⁾	176		213
Income taxes recoverable through future rates⁽⁸⁾	99		97
Other	64		55
Regulatory assets-non-current	897		667
Total regulatory assets	$	1,094	$	993
Regulatory liabilities:
Deferred cost of fuel used in electric generation⁽³⁾	$	62	$	—
Other	13		35
Regulatory liabilities-current	75		35
Provision for future cost of removal⁽¹¹⁾	932		890
Nuclear decommissioning trust⁽¹²⁾	882		804
Derivatives⁽⁶⁾	76		79
Deferred cost of fuel used in electric generation⁽³⁾	27		97
Other	50		59
Regulatory liabilities-non-current	1,967		1,929
Total regulatory liabilities	$	2,042	$	1,964
Dominion Gas
Regulatory assets:
Deferred rate adjustment clause costs⁽¹⁾	$	16	$	10
Other	6		13
Regulatory assets-current⁽⁴⁾	22		23
Unrecognized pension and other postretirement benefit costs⁽⁵⁾	275		282
Deferred rate adjustment clause costs⁽¹⁾	91		82
Income taxes recoverable through future rates⁽⁸⁾	21		20
Other	82		65
Regulatory assets-non-current⁽¹³⁾	469		449
Total regulatory assets	$	491	$	472
Regulatory liabilities:
PIPP⁽⁹⁾	$	26	$	46
Other	13		9



Regulatory liabilities-current⁽¹⁰⁾	39		55
Provision for future cost of removal and AROs⁽¹¹⁾	173		170
Other	44		31
Regulatory liabilities-non-current⁽¹⁴⁾	217		201
Total regulatory liabilities	$	256	$	256


(1)	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.


(2)	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.


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


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


(5)	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.


(6)	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 refunded to customers.


(7)	Reflects amounts related to PJM transmission cost allocation matter. See Note 12 for more information.


(8)	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.


(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 rate adjustment clause according to East Ohio tariff provisions.


(10)	Current regulatory liabilities are presented in other current liabilities in the Dominion's and Dominion Gas' 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 assets are presented in other deferred charges and other assets in Dominion Gas' Consolidated Balance Sheets.


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

Schedule of Regulatory Liabilities

Regulatory assets and liabilities include the following:



	September 30, 2016		December 31, 2015
(millions)
Dominion
Regulatory assets:
Deferred rate adjustment clause costs⁽¹⁾	$	101	$	90
Deferred nuclear refueling outage costs⁽²⁾	60		75
Deferred cost of fuel used in electric generation⁽³⁾	3		111
Other	86		75
Regulatory assets-current⁽⁴⁾	250		351
Unrecognized pension and other postretirement benefit costs⁽⁵⁾	981		1,015
Derivatives⁽⁶⁾	366		110
Deferred rate adjustment clause costs⁽¹⁾	271		295
PJM transmission rates⁽⁷⁾	192		192
Income taxes recoverable through future rates⁽⁸⁾	130		126
Other	203		127
Regulatory assets-non-current	2,143		1,865
Total regulatory assets	$	2,393	$	2,216
Regulatory liabilities:
Deferred cost of fuel used in electric generation⁽³⁾	$	62	$	—
PIPP⁽⁹⁾	26		46
Other	36		54
Regulatory liabilities-current⁽¹⁰⁾	124		100



Provision for future cost of removal and AROs⁽¹¹⁾	1,412		1,120
Nuclear decommissioning trust⁽¹²⁾	882		804
Derivatives⁽⁶⁾	76		79
Deferred cost of fuel used in electric generation⁽³⁾	27		97
Other	200		185
Regulatory liabilities-non-current	2,597		2,285
Total regulatory liabilities	$	2,721	$	2,385
Virginia Power
Regulatory assets:
Deferred rate adjustment clause costs⁽¹⁾	$	85	$	80
Deferred nuclear refueling outage costs⁽²⁾	60		75
Deferred cost of fuel used in electric generation⁽³⁾	3		111
Other	49		60
Regulatory assets-current	197		326
Derivatives⁽⁶⁾	366		110
PJM transmission rates⁽⁷⁾	192		192
Deferred rate adjustment clause costs⁽¹⁾	176		213
Income taxes recoverable through future rates⁽⁸⁾	99		97
Other	64		55
Regulatory assets-non-current	897		667
Total regulatory assets	$	1,094	$	993
Regulatory liabilities:
Deferred cost of fuel used in electric generation⁽³⁾	$	62	$	—
Other	13		35
Regulatory liabilities-current	75		35
Provision for future cost of removal⁽¹¹⁾	932		890
Nuclear decommissioning trust⁽¹²⁾	882		804
Derivatives⁽⁶⁾	76		79
Deferred cost of fuel used in electric generation⁽³⁾	27		97
Other	50		59
Regulatory liabilities-non-current	1,967		1,929
Total regulatory liabilities	$	2,042	$	1,964
Dominion Gas
Regulatory assets:
Deferred rate adjustment clause costs⁽¹⁾	$	16	$	10
Other	6		13
Regulatory assets-current⁽⁴⁾	22		23
Unrecognized pension and other postretirement benefit costs⁽⁵⁾	275		282
Deferred rate adjustment clause costs⁽¹⁾	91		82
Income taxes recoverable through future rates⁽⁸⁾	21		20
Other	82		65
Regulatory assets-non-current⁽¹³⁾	469		449
Total regulatory assets	$	491	$	472
Regulatory liabilities:
PIPP⁽⁹⁾	$	26	$	46
Other	13		9



Regulatory liabilities-current⁽¹⁰⁾	39		55
Provision for future cost of removal and AROs⁽¹¹⁾	173		170
Other	44		31
Regulatory liabilities-non-current⁽¹⁴⁾	217		201
Total regulatory liabilities	$	256	$	256


(1)	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.


(2)	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.


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


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


(5)	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.


(6)	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 refunded to customers.


(7)	Reflects amounts related to PJM transmission cost allocation matter. See Note 12 for more information.


(8)	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.


(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 rate adjustment clause according to East Ohio tariff provisions.


(10)	Current regulatory liabilities are presented in other current liabilities in the Dominion's and Dominion Gas' 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 assets are presented in other deferred charges and other assets in Dominion Gas' Consolidated Balance Sheets.


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