Regulatory Assets, Liabilities, And Balancing Accounts

6 Months Ended

Jun. 30, 2014

Regulatory Assets, Liabilities, And Balancing Accounts

NOTE 3: REGULATORY ASSETS, LIABILITIES, AND BALANCING ACCOUNTS

Regulatory Assets

Long-term regulatory assets are composed of the following:

	Balance at
	June 30,		December 31,
(in millions)	2014		2013
Pension benefits	$	1,415	$	1,444
Deferred income taxes		1,932		1,835
Utility retained generation		479		503
Environmental compliance costs		599		628
Price risk management		83		106
Electromechanical meters		103		135
Unamortized loss, net of gain, on reacquired debt		124		135
Other		86		127
Total long-term regulatory assets	$	4,821	$	4,913

Regulatory Liabilities

Long-term regulatory liabilities are composed of the following:

	Balance at
	June 30,		December 31,
(in millions)	2014		2013
Cost of removal obligations	$	3,978	$	3,844
Recoveries in excess of asset retirement obligations		754		748
Public purpose programs		677		587
Other		557		481
Total long-term regulatory liabilities	$	5,966	$	5,660

Regulatory Balancing Accounts

The Utility's recovery of revenue requirements and costs is generally decoupled from the volume of sales.  The Utility records (1) differences between the Utility's authorized revenue requirement and actual customer billings, and (2) differences between incurred costs and customer billings.  To the extent these differences are probable of recovery or refund over the next 12 months, the Utility records a current regulatory balancing account receivable or payable.  Regulatory balancing accounts that the Utility does not expect to collect or refund over the next 12 months are included in other noncurrent assets - regulatory assets or noncurrent liabilities - regulatory liabilities, respectively, in the Condensed Consolidated Balance Sheets.

The Utility sells and delivers electricity and natural gas.  The Utility also administers public purpose programs, primarily related to customer energy efficiency programs.  The balancing accounts associated with these items 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 receivable and payable are composed of the following:

	Receivable
	Balance at
	June 30,		December 31,
(in millions)	2014		2013
Electric distribution	$	455	$	102
Utility generation		257		57
Gas distribution		154		70
Energy procurement		486		410
Public purpose programs		39		56
Other		354		429
Total regulatory balancing accounts receivable	$	1,745	$	1,124

	Payable
	Balance at
	June 30,		December 31,
(in millions)	2014		2013
Energy procurement	$	298	$	298
Public purpose programs		199		171
Other		572		539
Total regulatory balancing accounts payable	$	1,069	$	1,008