APS 2013 Annual Report Download - page 60

Table of Contents
Increase (Decrease)
Operating
revenues
Fuel and
purchased
power
expenses Net change
(dollars in millions)
Impacts of retail regulatory settlement effective July 1, 2012 $ 64 $ 6 $ 58
Higher demand-side management, renewable energy and similar regulatory
surcharges 34 7 27
Higher retail transmission revenues 11 —11
Lower retail sales due to changes in customer usage patterns and related
pricing, partially offset by customer growth (17)(4)(13)
Higher fuel and purchased power costs, net of related deferrals and off-
system sales 74 95 (21)
Miscellaneous items, net (8)(3) (5)
Total $158 $101 $57
Operations and maintenance. Operations and maintenance expenses increased $40 million for the year ended December 31, 2013 compared with
the prior year primarily because of:
· An increase of $14 million related to technical analysis, consulting, advertising and communications costs;
· An increase of $13 million related to costs for demand-side management, renewable energy and similar regulatory programs, which were
largely offset in operating revenues;
· An increase of $9 million related to the closure of Four Corners Units 1, 2, and 3, deferred for regulatory recovery in depreciation;
· An increase of $6 million in energy delivery and customer service costs;
· An increase of $6 million in information technology costs;
· A decrease of $6 million in generation costs primarily related to lower fossil generation outage costs and lower nuclear generation costs;
and
· A decrease of $2 million related to other miscellaneous factors.
Depreciation and amortization. Depreciation and amortization expenses were $12 million higher for the year ended December 31, 2013 compared
with the prior year, primarily because of
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