ARO Trust (Notes)

3 Months Ended

Mar. 31, 2020

Investments, Debt and Equity Securities [Abstract]

ARO TRUST

We are entitled to collect in rates the amounts necessary to fund our asset retirement obligations (ARO). We deposit monthly, into an external trust account (ARO Trust), the revenues specifically designated for ARO. The ARO Trust carries a moderate risk portfolio. The Money Market Funds held in our ARO Trust are considered investments. We measure the financial instruments held in our ARO Trust at fair value. However, in accordance with the ASC Topic 980, Regulated Operations, both realized and unrealized gains and losses of the ARO Trust are recorded as regulatory assets or liabilities.

Effective March 1, 2019, the annual funding obligation based on the Docket No. RP18-1126 rate case filing was approximately $35.9 million. Pursuant to the approved stipulation and agreement in Docket No. RP18-1126, the new funding obligation 1) effective March 1, 2019 is approximately $23.8 million, and 2) effective March 1, 2020 is approximately $16.0 million.

Investments within the ARO Trust at fair value were as follows (in millions):



	March 31, 2020				December 31, 2019
	Amortized Cost Basis		Fair Value		Amortized Cost Basis		Fair Value
Money Market Funds	$	22.4	$	22.4	$	15.8	$	15.8
U.S. Equity Funds	63.3		74.5		55.3		83.3
International Equity Funds	36.8		32.3		31.8		35.4
Municipal Bond Funds	58.2		59.0		64.7		66.1
Total	$	180.7	$	188.2	$	167.6	$	200.6