The regulatory assets and regulatory liabilities resulting from our application of the provisions of ASC Topic 980, Regulated Operations, included in the accompanying Consolidated Balance Sheet at December 31, 2011 and December 31, 2010 are as follows (in millions):

Regulatory Assets		2011		2010

Grossed-up deferred taxes on equity funds used
	during construction	$	85.6	$	87.8
Asset retirement obligations			114.4		101.3
Deferred taxes			10.2		11.3
Postretirement benefits other than pension			5.7		6.8
Fuel cost			26.2		33.2
Electric power cost			3.3		6.9
Other			0.4		0.1
	Total Regulatory Assets	$	245.8	$	247.4

Regulatory Liabilities		2011		2010

Negative salvage		$	158.1	$	100.0
Deferred cash out			1.2		1.8
Sentinel meter station depreciation			2.8		1.6
Postretirement benefits other than pension			22.0		14.0
Other			0.7		0.4
	Total Regulatory Liabilities	$	184.8	$	117.8

Grossed-up deferred taxes on equity funds used during construction: Regulatory asset balance established to offset the deferred tax for the equity component of the allowance for funds used during the construction of long-lived assets. All amounts were generated during the period that we were a taxable entity. Taxes on capitalized funds used during construction and the offsetting deferred income taxes are included in the rate base and are recovered over the depreciable lives of the long-lived asset to which they relate.

Asset Retirement Obligations: Regulatory asset balance established to offset depreciation of the ARO asset and changes in the ARO liability due to the passage of time. The regulatory asset is being recovered through our rates, and is being amortized to expense consistent with the amounts collected in rates.

Deferred Taxes: Regulatory asset balance was established as a result of an increase to rate base deferred taxes due to an increase to the effective state income tax rate. The regulatory asset is being collected from rate payers over the remaining depreciable lives of the long-lived asset to which they relate.

Postretirement benefits: We recover the actuarially determined cost of postretirement benefits through rates that are set through periodic general rate filings. Any differences between the annual actuarially determined cost and amounts currently being recovered in rates are recorded as regulatory assets or liabilities and collected or refunded through future rate adjustments. These amounts are not included in the rate base.

Fuel cost: This amount represents the difference between the gas retained from our customers and the gas consumed in operations. These amounts are not included in the rate base but are expected to be recovered/refunded in subsequent annual fuel tracker filing periods.

Electric power cost: This amount represents the difference between the electric power costs recovered from our customers and the electric power costs incurred in operations. These amounts are not included in the rate base but are expected to be recovered/refunded in subsequent annual electric power tracker filing periods.

Negative Salvage: Our rates include a component designed to recover certain future retirement costs for which we are not required to record an asset retirement obligation. We record a regulatory liability representing the cumulative residual amount of recoveries through rates, net of expenditures associated with these retirement costs. Current year amount includes an adjustment for salvage proceeds from previously retired assets.

Deferred cash out: This amount represents the deferral of gains or losses on the purchases and sales of gas imbalances with shippers. These amounts are not included in the rate base but are expected to be recovered/refunded in subsequent annual cash out filing periods.

Sentinel meter station depreciation: This amount reflects the incremental depreciation being recorded related to the meter station modifications made for three of the Sentinel shippers. These modifications will be recovered through a surcharge over a defined period of time as stated in the Sentinel FERC order. The incremental depreciation represents the difference between the FERC granted depreciation rate for such facilities in the last rate case as compared to the depreciation rates in the Sentinel order which are based on the contractual terms in the surcharge agreements. The incremental depreciation will be recorded through the end of the contractual term and then will be amortized.