Regulatory Assets and Liabilities

NSP-Wisconsin’s consolidated financial statements are prepared in accordance with the applicable accounting guidance, as discussed in Note 1. Under this guidance, regulatory assets and liabilities are created for amounts that regulators may allow to be collected, or may require to be paid back to customers in future electric and natural gas rates. Any portion of the business that is not rate regulated cannot establish regulatory assets and liabilities. If changes in the utility industry or the business of NSP-Wisconsin no longer allow for the application of regulatory accounting guidance under GAAP, NSP-Wisconsin would be required to recognize the write-off of regulatory assets and liabilities in net income or OCI.

The components of regulatory assets shown on the consolidated balance sheets of NSP-Wisconsin at Dec. 31, 2013 and 2012 are:



(Thousands of Dollars)	See Note(s)	Remaining Amortization Period	Dec. 31, 2013				Dec. 31, 2012
Regulatory Assets			Current		Noncurrent		Current		Noncurrent
Environmental remediation costs	1, 11	Various	$	4,376	$	117,684	$	2,521	$	109,162
Pension and retiree medical obligations ^(a)	7	Various	8,202		85,220		7,328		104,426
Recoverable deferred taxes on AFUDC recorded in plant	1	Plant lives	—		12,679		—		10,458
Losses on reacquired debt	4	Term of related debt	801		5,737		800		6,538
State commission adjustments	1	Plant lives	410		9,355		339		7,533
Conservation programs	1	Less than one year	404		—		691		—
Deferred income tax adjustment	1, 6	Typically plant lives	—		1,763		—		1,974
Recoverable purchased natural gas and electric energy costs		Less than one year	673		—		358		—
Other		Various	—		755		11		368
Total regulatory assets			$	14,866	$	233,193	$	12,048	$	240,459


^(a)	Includes the non-qualified pension plan.

The components of regulatory liabilities shown on the consolidated balance sheets of NSP-Wisconsin at Dec. 31, 2013 and 2012 are:



(Thousands of Dollars)	See Note(s)	Remaining Amortization Period	Dec. 31, 2013				Dec. 31, 2012
Regulatory Liabilities			Current		Noncurrent		Current		Noncurrent
Plant removal costs	11	Plant lives	$	—	$	116,293	$	—	$	113,949
DOE settlement	11	Less than one year	6,814		—		5,628		—
Investment tax credit deferrals	1, 6	Various	—		9,976		—		9,626
Conservation programs	1	Less than one year	1,187		—		73		—
Deferred electric production and natural gas costs	1	Less than one year	1,542		—		134		—
Other		Various	174		155		251		171
Total regulatory liabilities			$	9,717	$	126,424	$	6,086	$	123,746

At Dec. 31, 2013 and 2012, approximately $0.1 million and $0.4 million of NSP-Wisconsin’s regulatory assets represented past expenditures not currently earning a return, respectively. This amount primarily includes recoverable purchased natural gas and electric energy costs.