APS 2015 Annual Report Download - page 59

Table of Contents
The following table presents net income attributable to common shareholders by business segment compared with the prior
year:
Year Ended
December 31,
2015
2014
Net change
(dollars in millions)
Regulated Electricity Segment:
Operating revenues less fuel and purchased power expenses $ 2,391
$ 2,309
$ 82
Operations and maintenance (868)
(908)
40
Depreciation and amortization (494)
(417)
(77)
Taxes other than income taxes (172)
(172)
—
All other income and expenses, net 19
28
(9)
Interest charges, net of allowance for borrowed funds used during
construction (179)
(185)
6
Income taxes (239)
(224)
(15)
Less income related to noncontrolling interests (Note 18) (19)
(26)
7
Regulated electricity segment income 439
405
34
All other (2)
(7)
5
Net Income Attributable to Common Shareholders $ 437
$ 398
$ 39
Operating revenues less fuel and purchased power expenses. Regulated electricity segment operating revenues less fuel and
purchased power expenses were $82 million higher for the year ended December 31, 2015 compared with the prior year. The
following table summarizes the major components of this change:
Increase (Decrease)
Operating
revenues
Fuel and
purchased
power
expenses
Net change
(dollars in millions)
Four Corners-related rate change $ 56
$ —
$ 56
Higher retail sales due to customer growth and changes in customer
usage patterns and related pricing 25
6
19
Lost fixed cost recovery 12
—
12
Effects of weather 16
6
10
Changes in net fuel and purchased power costs, including off-system
sales margins and related deferrals (69)
(68)
(1)
Changes in long-term wholesale contracted sales (40)
(25)
(15)
Miscellaneous items, net 3
2
1
Total $ 3
$ (79)
$ 82
Operations and maintenance. Operations and maintenance expenses decreased $40 million for the year ended December 31,
2015 compared with the prior year primarily because of:
• A decrease of $21 million for employee benefit costs;
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