Income Taxes	6 Months Ended
Jun. 30, 2013
Income Taxes
Income Taxes	5. Income Taxes The $71 million long-term income tax receivable on the Condensed Consolidated Balance Sheets represents the anticipated refunds related to an APS tax accounting method change approved by the Internal Revenue Service (“IRS”) in the third quarter of 2009. Subsequent to June 30, 2013, IRS guidance was released which provided clarification regarding the timing of this cash receipt. As a result of the release of this guidance, the $71 million income tax receivable will be reclassified to short-term for the quarter ended September 30, 2013. Additionally, as a result of this IRS guidance, it is possible that uncertain tax positions could decrease by approximately $65-$75 million within the next 12 months. This decrease would be substantially offset by an increase in deferred tax liabilities. It is reasonably possible that within the next twelve months the IRS will finalize the examination of tax returns for the years ended December 31, 2008 and 2009. We do not expect the ultimate outcome of this examination to have a material adverse impact on our financial position or results of operations. Net Income associated with the Palo Verde sale leaseback variable interest entities is not subject to tax (see Note 6). As a result, there is no income tax expense associated with the VIEs recorded on the Condensed Consolidated Statements of Income. The American Taxpayer Relief Act of 2012, signed into law on January 2, 2013, includes provisions making qualified property placed into service in 2013 eligible for 50% bonus depreciation for federal income tax purposes. Full recognition of the cash benefit of this provision is expected to delay realization of approximately $78 million in federal general business income tax credit carryforwards which were classified as current deferred income taxes as of December 31, 2012. As of June 30, 2013, approximately $39 million of the $78 million in federal general business tax credit carryforwards have been reclassified to long-term deferred income taxes as they are no longer expected to be realized within the next twelve months. As of June 30, 2013, the tax year ended December 31, 2008 and all subsequent tax years remain subject to examination by the IRS. With few exceptions, we are no longer subject to state income tax examinations by tax authorities for years before 2008.

Income Taxes

6 Months Ended

Jun. 30, 2013

5. Income Taxes

The $71 million long-term income tax receivable on the Condensed Consolidated Balance Sheets represents the anticipated refunds related to an APS tax accounting method change approved by the Internal Revenue Service (“IRS”) in the third quarter of 2009. Subsequent to June 30, 2013, IRS guidance was released which provided clarification regarding the timing of this cash receipt. As a result of the release of this guidance, the $71 million income tax receivable will be reclassified to short-term for the quarter ended September 30, 2013. Additionally, as a result of this IRS guidance, it is possible that uncertain tax positions could decrease by approximately $65-$75 million within the next 12 months. This decrease would be substantially offset by an increase in deferred tax liabilities.

It is reasonably possible that within the next twelve months the IRS will finalize the examination of tax returns for the years ended December 31, 2008 and 2009. We do not expect the ultimate outcome of this examination to have a material adverse impact on our financial position or results of operations.

Net Income associated with the Palo Verde sale leaseback variable interest entities is not subject to tax (see Note 6). As a result, there is no income tax expense associated with the VIEs recorded on the Condensed Consolidated Statements of Income.

The American Taxpayer Relief Act of 2012, signed into law on January 2, 2013, includes provisions making qualified property placed into service in 2013 eligible for 50% bonus depreciation for federal income tax purposes. Full recognition of the cash benefit of this provision is expected to delay realization of approximately $78 million in federal general business income tax credit carryforwards which were classified as current deferred income taxes as of December 31, 2012. As of June 30, 2013, approximately $39 million of the $78 million in federal general business tax credit carryforwards have been reclassified to long-term deferred income taxes as they are no longer expected to be realized within the next twelve months.

As of June 30, 2013, the tax year ended December 31, 2008 and all subsequent tax years remain subject to examination by the IRS. With few exceptions, we are no longer subject to state income tax examinations by tax authorities for years before 2008.