Regulatory Assets and Liabilities

12 Months Ended

Dec. 31, 2019

The Company has recorded regulatory assets and liabilities (in millions) that it expects to pass through to its customers in accordance with, and subject to, regulatory provisions as follows:



December 31,	2019		2018		Recovery/Refund Period
Regulatory assets
Current regulatory assets:
El Salvador energy pass through costs recovery	$	56	$	87	Quarterly
Other	57		69		1 year
Total current regulatory assets	113		156
Noncurrent regulatory assets:
IPL and DPL defined benefit pension obligations ⁽¹⁾	262		283		Various
IPL deferred Midwest ISO costs	75		88		9 years
IPL environmental costs	85		89		Various
Other	108		87		Various
Total noncurrent regulatory assets	530		547
Total regulatory assets	$	643	$	703
Regulatory liabilities
Current regulatory liabilities:
Overcollection of costs to be passed back to customers	$	80	$	83	1 year
Other	1		3		Various
Total current regulatory liabilities	81		86
Noncurrent regulatory liabilities:
IPL and DPL accrued costs of removal and AROs	863		847		Over life of assets
IPL and DPL income taxes payable to customers through rates	209		246		Various
Other	18		53		Various
Total noncurrent regulatory liabilities	1,090		1,146
Total regulatory liabilities	$	1,171	$	1,232

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⁽¹⁾	Past expenditures on which the Company earns a rate of return.

Our regulatory assets and current regulatory liabilities primarily consist of under or overcollection of costs that are generally non-controllable, such as purchased electricity, energy transmission, fuel costs, and other sector costs. These costs are recoverable or refundable as defined by the laws and regulations in our markets. Our regulatory assets also include defined pension and postretirement benefit obligations equal to the previously unrecognized actuarial gains and losses and prior service costs that are expected to be recovered through future rates. Other current and noncurrent regulatory assets primarily consist of:


•	Undercollections on rate riders such as wholesale margin sharing and MISO costs at IPL and storm costs at DPL;


•	Unamortized premiums reacquired or redeemed on long-term debt at IPL and DPL, which are amortized over the lives of the original issuances; and


•	OVEC costs at DPL.

Our noncurrent regulatory liabilities primarily consist of obligations for removal costs which do not have an associated legal retirement obligation. Our noncurrent regulatory liabilities also include deferred income taxes related to differences in income recognition between tax laws and accounting methods, which will be passed through to our regulated customers via a decrease in future retail rates. See Note 23—Income Taxes for further information.

In the accompanying Consolidated Balance Sheets the current regulatory assets and liabilities are reflected in Other current assets and Accrued and other liabilities, respectively, and the noncurrent regulatory assets and liabilities are reflected in Other noncurrent assets and Other noncurrent liabilities, respectively. All of the regulatory assets and liabilities as of December 31, 2019 and December 31, 2018 related to the US and Utilities SBU.