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Regulatory Matters (Tables)
 12 Months Ended
Dec. 31, 2021
Regulated Operations [Abstract]  
Schedule of capital structure and cost of capital the following proposed capital structure and costs of capital:
  Capital Structure Cost of Capital 
Long-term debt 45.3 %4.10 %
Common stock equity 54.7 %10.15 %
Weighted-average cost of capital   7.41 %
Schedule of changes in the deferred fuel and purchased power regulatory asset
The following table shows the changes in the deferred fuel and purchased power regulatory asset for 2021 and 2020 (dollars in thousands):
 Twelve Months Ended
December 31,
 20212020
Beginning balance$175,835 $70,137 
Deferred fuel and purchased power costs — current period256,871 93,651 
Amounts refunded/(charged) to customers(44,558)12,047 
Ending balance$388,148 $175,835 
Schedule of regulatory assets
The detail of regulatory assets is as follows (dollars in thousands):
SDecember 31, 2021December 31, 2020
 Amortization ThroughCurrentNon-CurrentCurrentNon-Current
Pension (a)$— $509,751 $— $469,953 
Deferred fuel and purchased power (b) (c)2022388,148 — 175,835 — 
Income taxes — AFUDC equity20517,625 164,768 7,169 158,776 
Ocotillo deferral (e)20319,507 138,143 — 95,723 
Retired power plant costs203315,160 99,681 28,181 114,214 
SCR deferral (e) (f)20318,147 97,624 — 81,307 
Lost fixed cost recovery (b)202263,889 — 41,807 — 
Deferred property taxes20278,569 41,057 8,569 49,626 
Deferred compensation2036— 33,997 — 36,195 
Income taxes — investment tax credit basis adjustment20561,129 23,639 1,113 24,291 
Four Corners cost deferral20248,077 15,998 8,077 24,075 
Palo Verde VIEs (Note 18)2046— 21,094 — 21,255 
Coal reclamation20262,978 13,862 1,068 16,999 
Loss on reacquired debt20381,648 9,372 1,689 10,877 
Mead-Phoenix transmission line — contributions in aid of construction2050332 9,048 332 9,380 
Tax expense adjustor mechanism (b)2031656 5,845 6,226 — 
TCA balancing account (b)2023170 3,663 — — 
Tax expense of Medicare subsidy20241,235 2,469 1,235 3,704 
Demand side management (b)2022919 — — 7,268 
PSA interest2022335 — 4,355 — 
Deferred fuel and purchased power — mark-to-market (Note 16)2024— — 3,341 9,244 
OtherVarious— 2,976 2,716 1,100 
Total regulatory assets (d) $518,524 $1,192,987 $291,713 $1,133,987 
(a)This asset represents the future recovery of pension benefit obligations and expense through retail rates.  If these costs are disallowed by the ACC, this regulatory asset would be charged to OCI and result in lower future revenues.  As a result of the 2019 Rate Case Decision, the amount authorized for inclusion in rate base was determined using an averaging methodology, which resulted in a reduced return in retail rates. See Note 8 for further discussion.
(b)See “Cost Recovery Mechanisms” discussion above.
(c)Subject to a carrying charge.
(d)There are no regulatory assets for which the ACC has allowed recovery of costs, but not allowed a return by exclusion from rate base. FERC rates are set using a formula rate as described in “Transmission Rates, Transmission Cost Adjustor and Other Transmission Matters.”
(e)Balance includes amounts for future regulatory consideration and amortization period determination.
(f)See “Four Corners SCR Cost Recovery” discussion above.
Schedule of regulatory liabilities
The detail of regulatory liabilities is as follows (dollars in thousands):
 December 31, 2021December 31, 2020
 Amortization ThroughCurrentNon-CurrentCurrentNon-Current
Excess deferred income taxes - ACC — Tax Cuts and Jobs Act (a)2046$40,903 $971,545 $41,330 $1,012,583 
Excess deferred income taxes - FERC — Tax Cuts and Jobs Act (a)20587,239 221,877 7,240 229,147 
Asset retirement obligations2057— 614,683 — 506,049 
Other postretirement benefits(d)37,789 337,027 37,705 349,588 
Removal costs(c)69,476 50,104 52,844 103,008 
Deferred fuel and purchased power — mark-to-market (Note 17)202460,693 46,908 — — 
Income taxes — change in rates20512,876 64,802 2,839 66,553 
Four Corners coal reclamation20382,316 53,076 5,460 49,435 
Spent nuclear fuel20276,701 38,581 6,768 44,221 
Income taxes — deferred investment tax credit20562,264 47,337 2,231 48,648 
Renewable energy standard (b)202238,453 187 39,442 103 
FERC transmission true up (b)202321,379 12,924 6,598 3,008 
Property tax deferral (e)20244,671 15,521 — 13,856 
Sundance maintenance2031— 13,797 2,989 11,508 
Demand side management (b)2022— 5,417 10,819 — 
Tax expense adjustor mechanism (b) (e)N/A— 4,835 7,089 — 
Deferred gains on utility property20221,301 551 2,423 1,544 
TCA balancing account (b)2022— — 2,902 4,672 
Active union medical trustN/A— — — 6,057 
OtherVarious210 41 409 189 
Total regulatory liabilities $296,271 $2,499,213 $229,088 $2,450,169 

(a)For purposes of presentation on the Statement of Cash Flows, amortization of the regulatory liabilities for excess deferred income taxes are reflected as “Deferred income taxes” under Cash Flows From Operating Activities.
(b)See “Cost Recovery Mechanisms” discussion above.
(c)In accordance with regulatory accounting, APS accrues removal costs for its regulated assets, even if there is no legal obligation for removal.
(d)See Note 8.
(e)Balance includes amounts for future regulatory consideration and amortization period determination.