APS 2012 Annual Report Download - page 125

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PINNACLE WEST CAPITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
100
Regulatory Assets and Liabilities
The detail of regulatory assets is as follows (dollars in millions):
Remaining
Amortization
Period
December 31, 2012
December 31, 2011
Current
Non-Current
Current
Non-Current
Pension and other
postretirement benefits
(a)
$ --
$ 780
$ --
$ 1,023
Income taxes – AFUDC equity
2042
4
92
3
81
Deferred fuel and purchased
power – mark-to-market
(Note 18)
2016
19
21
43
34
Transmission vegetation
management
2016
9
23
9
32
Coal reclamation
2026
8
24
2
35
Palo Verde VIEs (Note 20)
2046
--
38
--
35
Deferred compensation
2036
--
34
--
33
Deferred fuel and purchased
power (b) (c)
2013
73
--
28
--
Tax expense of Medicare
subsidy
2024
2
17
2
18
Loss on reacquired debt
2034
2
18
1
19
Income taxes – investment
tax credit basis
adjustment
2042
1
26
--
15
Pension and other
postretirement benefits
deferral
2015
8
13
--
12
Other
Various
18
14
9
15
Total regulatory assets (d)
$ 144
$ 1,100
$ 97
$ 1,352
(a) This asset represents the future recovery of under-funded pension and other
postretirement benefits obligation 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.