APS 2013 Annual Report Download - page 105

Table of Contents
PINNACLE WEST CAPITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Regulatory Assets and Liabilities
The detail of regulatory assets is as follows (dollars in millions):
Remaining
Amortization December 31, 2013 December 31, 2012
Period Current Non-Current Current Non-Current
Pension and other postretirement benefits (a) $ — $ 314 $ — $ 780
Income taxes — AFUDC equity 2043 4105 492
Deferred fuel and purchased power — mark-to-market
(Note 17) 2016 5 29 19 21
Transmission vegetation management 2016 9 14 923
Coal reclamation 2038 8 18 8 24
Palo Verde VIEs (Note 19) 2046 —41 —38
Deferred compensation 2036 —34 —34
Deferred fuel and purchased power (b) (c) 2014 21 — 73 —
Tax expense of Medicare subsidy 2023 215 2 17
Loss on reacquired debt 2034 1 17 2 18
Income taxes — investment tax credit basis adjustment 2043 1 39 1 26
Pension and other postretirement benefits deferral 2015 8 4813
Four Corners cost deferral 2024 —37 — —
Lost fixed cost recovery 2014 25 — 7 —
Transmission cost adjustor 2015 8 2 10 —
Retired power plant costs 2020 318 — —
Other Various 225 114
Total regulatory assets (d) $97 $ 712 $ 144 $1,100
(a) This asset represents the future recovery of under-funded pension and other postretirement benefit obligations 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. See Note 8 for further
discussion.
(b) See “Cost Recovery Mechanisms” discussion above.
(c) Subject to a carrying charge.
(d) 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.”
101