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Regulatory Matters (Tables)
12 Months Ended
Dec. 31, 2022
Regulated Operations [Abstract]  
Schedule Of Capital Structure And Cost Of Capital, Regulatory Matter the following proposed capital structure and costs of capital:
Capital StructureCost of Capital
Long-term debt48.07 %3.85 %
Common stock equity51.93 %10.25 %
Weighted-average cost of capital7.17 %
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 2022 and 2021 (dollars in thousands):
 Twelve Months Ended
December 31,
 20222021
Beginning balance$388,148 $175,835 
Deferred fuel and purchased power costs — current period291,992 256,871 
Amounts charged to customers(219,579)(44,558)
Ending balance$460,561 $388,148 
Schedule of regulatory assets
The detail of regulatory assets is as follows (dollars in thousands):
SDecember 31,
 Amortization Through20222021
Pension(a)$637,656 $509,751 
Deferred fuel and purchased power (b) (c)2023460,561 388,148 
Income taxes — AFUDC equity2052179,631 172,393 
Ocotillo deferral (e)2031138,143 147,650 
Retired power plant costs203398,692 114,841 
SCR deferral (e) (f)203197,624 105,771 
Deferred property taxes202741,057 49,626 
Deferred compensation203633,660 33,997 
Income taxes — investment tax credit basis adjustment205623,977 24,768 
Palo Verde VIEs (Note 17)
204620,933 21,094 
Active union medical trust(g)18,226 1,175 
Four Corners cost deferral202415,999 24,075 
Navajo coal reclamation202613,862 16,840 
Lost fixed cost recovery (b)20239,547 63,889 
Loss on reacquired debt20389,468 11,020 
Mead-Phoenix transmission line — contributions in aid of construction20509,048 9,380 
Tax expense adjustor mechanism (b)20315,845 6,501 
OtherVarious8,171 10,592 
Total regulatory assets (d)$1,822,100 $1,711,511 
Less: current regulatory assets$538,879 $518,524 
Total noncurrent regulatory assets$1,283,221 $1,192,987 
(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 7 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.
(g)Collected in retail rates.
Schedule of regulatory liabilities
The detail of regulatory liabilities is as follows (dollars in thousands):
 December 31,
 Amortization Through20222021
Excess deferred income taxes - ACC — Tax Cuts and Jobs Act (a)2046$971,545 $1,012,448 
Excess deferred income taxes - FERC — Tax Cuts and Jobs Act (a)2058221,877 229,116 
Asset retirement obligations2057354,002 614,683 
Other postretirement benefits(d)270,604 374,816 
Removal costs (c) 106,889 119,580 
Deferred fuel and purchased power — mark-to-market (Note 15)
202496,367 107,601 
Income taxes — change in rates205164,806 67,678 
Four Corners coal reclamation203852,592 55,392 
Income taxes — deferred investment tax credit205648,035 49,601 
Spent nuclear fuel202739,217 45,282 
Renewable energy standard (b)202435,720 38,640 
FERC transmission true up (b)202422,895 34,303 
Property tax deferral (e)202415,521 20,192 
Sundance maintenance203116,893 13,797 
Demand side management (b)20238,461 5,417 
Tax expense adjustor mechanism (b) (e)N/A4,835 4,835 
OtherVarious3,092 2,103 
Total regulatory liabilities$2,333,351 $2,795,484 
Less: current regulatory liabilities$271,575 $296,271 
Total noncurrent regulatory liabilities$2,061,776 $2,499,213 
(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 7.
(e)Balance includes amounts for future regulatory consideration and amortization period determination.