Regulatory Assets and Liabilities

12 Months Ended

Dec. 31, 2022

Regulatory Assets and Liabilities Disclosure [Abstract]

Regulatory assets and liabilities are created for amounts that regulators may allow to be collected or may require to be paid back to customers in future electric and natural gas rates. PSCo would be required to recognize the write-off of regulatory assets and liabilities in net income or other comprehensive income if changes in the utility industry no longer allow for the application of regulatory accounting guidance under GAAP.

Components of regulatory assets:


(Millions of Dollars)	See Note(s)	Remaining Amortization Period	Dec. 31, 2022				Dec. 31, 2021 (a)
Regulatory Assets			Current		Noncurrent		Current		Noncurrent
Pension and retiree medical obligations	9	Various	$	3	$	367	$	26	$	331
Net AROs (b)	1, 10	Various	—		212		—		154
Deferred natural gas, electric, steam energy/fuel costs		One to three years	312		200		218		320
Depreciation differences		One to ten years	16		187		16		173
Recoverable deferred taxes on AFUDC		Plant lives	—		119		—		116
Excess deferred taxes — TCJA	7	Various	2		54		2		56
Environmental remediation costs		Various	6		26		1		8
Grid modernization costs		Three years	14		22		—		35
Conservation programs (c)	1	One to two years	8		16		11		11
Gas pipeline inspection costs		One to two years	—		13		—		12
Purchased power contract costs		Term of related contract	3		16		3		19
Property tax		Various	8		2		16		16
Other		Various	39		43		60		42
Total regulatory assets			$	411	$	1,277	$	353	$	1,293

(a)Prior period amounts have been restated to conform with current year presentation.

(b)Includes amounts recorded for future recovery of AROs.

(c)Includes costs for conservation programs, as well as incentives allowed in certain jurisdictions.

Components of regulatory liabilities:


(Millions of Dollars)	See Note(s)	Remaining Amortization Period	Dec. 31, 2022				Dec. 31, 2021 (a)
Regulatory Liabilities			Current		Noncurrent		Current		Noncurrent
Deferred income tax adjustments and TCJA refunds (b)	7	Various	$	2	$	1,298	$	2	$	1,328
Plant removal costs	1, 10	Various	—		705		—		651
Effects of regulation on employee benefit costs (c)		Various	—		227		—		216
Renewable resources and environmental initiatives		Various	—		141		—		91
Revenue decoupling		One to two years	—		55		9		41
ITC deferrals	1	Various	1		41		—		42
Formula rates		One to two years	16		—		10		—
Conservation programs	1	Less than one year	19		—		34		—
Deferred natural gas, electric, steam energy/fuel costs		Less than one year	3		—		29		—
Other		Various	18		22		11		28
Total regulatory liabilities (d)			$	59	$	2,489	$	95	$	2,397

(a)Prior period amounts have been restated to conform with current year presentation.

(b)Includes the revaluation of recoverable/regulated plant accumulated deferred income taxes and revaluation impact of non-plant accumulated deferred income taxes due to the TCJA.

(c)Includes regulatory amortization and certain 2018 TCJA benefits approved by the CPUC to offset the prepaid pension asset.

(d)Revenue subject to refund of $0 million and $2 million for 2022 and 2021, respectively, is included in other current liabilities.

PSCo’s regulatory assets not earning a return include the unfunded portion of pension and retiree medical obligations and net AROs (i.e. deferrals for which cash has not been disbursed). In addition, regulatory assets included $538 million and $639 million at Dec. 31, 2022 and 2021, respectively, of past expenditures not earning a return. Amounts are predominately related to purchased natural gas and electric energy costs (including certain costs related to Winter Storm Uri), sales true-up and revenue decoupling, various renewable resources/environmental initiatives and certain prepaid pension amounts.