APS 2011 Annual Report Download - page 125

PINNACLE WEST CAPITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
100
Regulatory Assets and Liabilities
As discussed in Note 1, as of March 31, 2011, the Company revised its presentation of
regulatory assets and liabilities to separately reflect current and non-current amounts on the
Consolidated Balance Sheets. This presentation is reflected in the tables below.
The detail of regulatory assets is as follows (dollars in millions):
Remaining
Amortization
Period
December 31, 2011 December 31, 2010
Current Non-Current Current Non-Current
Pension and other postretirement
benefits (a) $ -- $ 1,023 $ -- $ 669
Income taxes –AFUDC equity 2041 3 81 3 69
Deferred fuel and purchased
power – mark-to-market
(Note 18) 2016 43 34 42 35
Transmission vegetation
management 2016 9 32 -- 46
Coal reclamation 2026 2 35 2 36
Palo Verde VIE (Note 20) 2015 -- 35 -- 33
Deferred compensation 2036 -- 33 -- 32
Deferred fuel and purchased
power (b) 2012 28 -- -- --
Income taxes – Medicare subsidy 2024 2 18 2 21
Loss on reacquired debt 2034 1 19 1 21
Income taxes – investment
tax credit basis adjustment 2044 -- 15 -- --
Pension and other postretirement
benefits deferral 2015 -- 12 -- --
Demand side management 2013 7 1 12 6
Other Various 2 14 -- 18
Total regulatory assets (c) $ 97 $ 1,352 $ 62 $ 986
(a) This asset represents the future recovery in earnings of under-funded pension and
other postretirement benefits obligation costs through retail rates. If these costs are
disallowed by the ACC, this regulatory asset would be charged to OCI and result in
lower future revenues.
(b) See “Cost Recovery Mechanisms” discussion above.
(c) There are no regulatory assets for which the ACC has allowed recovery of costs but
not allowed a return by exclusion from rate base. FERC rates are set using a formula
rate as described in “Transmission Rates and Transmission Cost Adjustor.”