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Regulatory Assets, Liabilities, And Balancing Accounts
 9 Months Ended
Sep. 30, 2013
Regulatory Assets, Liabilities, And Balancing Accounts
 
NOTE 3: REGULATORY ASSETS, LIABILITIES, AND BALANCING ACCOUNTS
 
Regulatory Assets
 
Long-Term Regulatory Assets
 
Long-term regulatory assets are composed of the following:
 
 
 
Balance at
 
September 30,
 
December 31,
(in millions)
2013
 
2012
Pension benefits
$
3,356
 
$
3,275
Deferred income taxes
 
1,772
 
 
1,627
Utility retained generation
 
515
 
 
552
Environmental compliance costs
 
609
 
 
604
Price risk management
 
144
 
 
210
Electromechanical meters
 
150
 
 
194
Unamortized loss, net of gain, on reacquired debt
 
140
 
 
141
Other
 
141
 
 
206
Total long-term regulatory assets
$
6,827
 
$
6,809
 
 
Regulatory Liabilities
 
Long-Term Regulatory Liabilities
 
Long-term regulatory liabilities are composed of the following:
 
 
 
Balance at
 
September 30,
 
December 31,
(in millions)
2013
 
2012
Cost of removal obligations
$
3,805
 
$
3,625
Recoveries in excess of asset retirement obligations
 
674
 
 
620
Public purpose programs
 
594
 
 
590
Other
 
270
 
 
253
Total long-term regulatory liabilities
$
5,343
 
$
5,088
 
Regulatory Balancing Accounts
 
                                                The Utility's recovery of a significant portion of revenue requirements and costs is decoupled from the volume of sales.  The Utility records (1) differences between actual customer billings and the Utility's authorized revenue requirement, and (2) differences between incurred costs and customer billings.  To the extent these differences are probable of recovery or refund, the Utility records a regulatory balancing account receivable or payable.  Regulatory balancing accounts receivable and payable will fluctuate during the year based on seasonal electric and gas usage and the timing of when costs are incurred and customer revenues are collected.
Current Regulatory Balancing Accounts, Net
 
 
Receivable (Payable)
 
Balance at
 
September 30,
 
December 31,
(in millions)
2013
 
2012
Distribution revenue adjustment mechanism
$
(3
 ) 
$
219
Utility generation
 
(22
 ) 
 
117
Hazardous substance
 
75
 
 
56
Public purpose programs
 
(100
 ) 
 
(83
)
Gas fixed cost
 
179
 
 
44
Energy recovery bonds
 
(170
 ) 
 
(43
)
Energy procurement
 
281
 
 
77
U.S. Department of Energy Settlement
 
(279
 ) 
 
(250
)
GHG allowance auction proceeds (1)
 
(250
 ) 
 
-
Other
 
291
 
 
165
Total regulatory balancing accounts, net
$
2
 
$
302
 
 
 
 
 
 
 
      (1) The CARB has adopted regulations that established a state-wide, “cap-and-trade” program (effective January 1, 2013) that sets a
      gradually declining limit on the amount of GHGs that may be emitted each year. This balancing account is used to record proceeds
      collected by the Utility for GHG emission allowances associated with the cap-and-trade program.  These amounts will be refunded
      to customers in future periods.