REGULATORY ASSETS AND LIABILITIES

Our primary regulator, the PSCW, considers our regulatory assets and liabilities in two categories, escrowed and deferred. In escrow accounting we expense amounts that are included in rates. If actual costs exceed or are less than the amounts that are allowed in rates, the difference in cost is escrowed on the balance sheet as a regulatory asset or regulatory liability and the escrowed balance is considered in setting future rates. Under deferred cost accounting, we defer amounts to our balance sheet based upon orders or correspondence with our regulators. These deferred costs will be considered in future rate setting proceedings. As of December 31, 2013, we had $10.1 million of regulatory assets not earning a return and $82.7 million of regulatory assets earning a return based on short-term interest rates.

In December 2012, the PSCW issued a rate order effective January 1, 2013 that, among other things, reaffirmed our accounting for the regulatory assets and liabilities identified below.

Our regulatory assets and liabilities as of December 31 consist of:



	2013		2012
	(Millions of Dollars)
Regulatory Assets
Deferred unrecognized pension costs	$	537.6	$	731.5
Deferred income tax related	169.5		176.5
Escrowed electric transmission costs	126.8		114.1
Escrowed conservation	66.9		73.5
Deferred plant related -- capital lease	56.5		66.6
Deferred environmental costs	47.0		47.4
Other, net	104.2		170.7
Total regulatory assets	$	1,108.5	$	1,380.3

Regulatory Liabilities
Deferred cost of removal obligations	$	724.5	$	725.0
Escrowed bad debt costs	64.6		81.1
Other, net	90.0		62.2
Total regulatory liabilities	$	879.1	$	868.3