NOTE 3: REGULATORY ASSETS, LIABILITIES, AND BALANCING ACCOUNTS

Regulatory Assets

Long-term regulatory assets are composed of the following:

	Balance at
	March 31,		December 31,
(in millions)	2015		2014
Pension benefits	$	2,332	$	2,347
Deferred income taxes		2,521		2,390
Environmental compliance costs		674		717
Utility retained generation		446		456
Price risk management		170		127
Unamortized loss, net of gain, on reacquired debt		108		113
Electromechanical meters		53		70
Other		108		102
Total long-term regulatory assets	$	6,412	$	6,322

Regulatory Liabilities

Long-term regulatory liabilities are composed of the following:

	Balance at
	March 31,		December 31,
(in millions)	2015		2014
Cost of removal obligations	$	4,307	$	4,211
Recoveries in excess of asset retirement obligations		760		754
Public purpose programs		743		701
Other		497		624
Total long-term regulatory liabilities	$	6,307	$	6,290

Regulatory Balancing Accounts

The Utility’s recovery of revenue requirements and costs is generally decoupled from the volume of sales. The Utility tracks (1) differences between the Utility’s authorized revenue requirement and 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 expects to collect or refund over a period exceeding 12 months are recorded as other noncurrent assets – regulatory assets or noncurrent liabilities – regulatory liabilities, respectively, in the Condensed Consolidated Balance Sheets. Balancing accounts 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
	March 31,		December 31,
(in millions)	2015		2014
Electric distribution	$	643	$	344
Utility generation		434		261
Gas distribution		413		566
Energy procurement		412		608
Public purpose programs		87		109
Other		238		378
Total regulatory balancing accounts receivable	$	2,227	$	2,266

	Payable
	Balance at
	March 31,		December 31,
(in millions)	2015		2014
Energy procurement	$	217	$	188
Public purpose programs		144		154
Other (1)		678		748
Total regulatory balancing accounts payable	$	1,039	$	1,090

(1) At March 31, 2015 Other regulatory balancing accounts payable mostly includes energy supplier settlements related to the Utility’s outstanding bankruptcy claims. (See “Resolution of Remaining Chapter 11 Disputed Claims” in Note 9 below).