Regulatory Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2012

Regulatory Assets and Liabilities

Schedule of regulatory assets and liabilities

		2012		2011
		(dollars in thousands)
Regulatory Assets:
Premium and loss on reacquired debt(a)	$	92,428	$	98,538
Amortization on capital leases(b)		37,615		46,627
Outage costs(c)		36,730		42,866
Interest rate swap termination fees(d)		19,321		21,316
Asset retirement obligations(e)		21,069		29,341
Depreciation expense(f)		50,497		51,209
Deferred charges related to Vogtle Units No. 3 and No. 4 training costs(g)		21,391		17,602
Interest rate options cost(h)		61,774		30,735
Deferral of effects on net margin—Smith Energy Facility(k)		13,886		3,536
Other regulatory assets(i)		8,791		9,777
Total Regulatory Assets	$	363,502	$	351,547
Regulatory Liabilities:
Accumulated retirement costs for other obligations(e)	$	31,829	$	32,687
Net benefit of Rocky Mountain transactions(j)		46,187		47,783
Deferral of effects on net margin—Hawk Road Energy Facility(k)		11,554		15,811
Major maintenance sinking fund(l)		28,921		28,524
Deferred debt service adder(m)		42,537		37,586
Other regulatory liabilities(i)		1,450		1,609
Total Regulatory Liabilities	$	162,478	$	164,000
Net Regulatory Assets	$	201,024	$	187,547

^(a)

Represents premiums paid, together with unamortized transaction costs related to reacquired debt amortized over the period of the refunding debt, which range up to 31 years.

^(b)

Recovery over the remaining life of the leases through 2031. See Note N for lease extensions.

^(c)

Consists of both coal-fired and nuclear refueling outage costs. These outage costs are amortized on a straight-line basis to expense over an 18 to 24-month period.

^(d)

Represents amount paid on settled interest rate swaps arrangements that are being amortized over the remaining life of the refunded variable rate bonds or 2016 and 2019, respectively.

^(e)

Represents difference in timing of recognition of the costs of decommissioning for financial statement purposes and for ratemaking purposes.

^(f)

Prior to Nuclear Regulatory Commission (NRC) approval of a 20 year license extension for Plant Vogtle, we deferred the difference between Plant Vogtle depreciation expense based on the then 40-year operating license and depreciation expense assuming an expected 20-year license extension. Amortization commenced upon NRC approval of the license extension in 2009 and is being amortized over the remaining life of the plant.

^(g)

Vogtle Units No. 3 and No. 4 training and interest related carrying costs of such training. Amortization will commence effective with the commercial operation date of each unit and amortized over the life of the units.

^(h)

Deferral of net loss (gains) associated with the change in fair value of the interest rate options to hedge interest rates on a portion of expected borrowings related to Vogtle Units No. 3 and No. 4 construction. Amortization will commence effective with the expected principal repayment of the Department of Energy (DOE)-guaranteed loan and amortized over the expected remaining life of DOE-guaranteed loan.

⁽ⁱ⁾

The amortization period for other regulatory assets range up to 37 years and the amortization period of other regulatory liabilities range up to 7 years.

^(j)

Net benefit associated with Rocky Mountain lease transactions is amortized to income over the 30-year lease-back period. See Note P regarding events subsequent to the balance sheet date.

^(k)

Effects on net margin for Smith and Hawk Road Energy Facilities will be deferred until the end of 2015 and amortized over the remaining life of each plant.

^(l)

Represents collections for future major maintenance costs that will offset major maintenance expenses when incurred.

^(m)

Collections to fund debt payments in excess of depreciation expense through the end of 2025.