APS 2015 Annual Report Download - page 60

Table of Contents
• A decrease of $14 million in fossil generation costs primarily related to lower planned outage costs;
• A decrease of $13 million for costs related to corporate support;
• A decrease of $8 million related to costs for demand-side management, renewable energy and similar regulatory
programs, which is partially offset in operating revenues and purchased power;
• An increase of $9 million related to higher nuclear generation costs;
• An increase of $6 million in customer service costs including costs related to a new customer information system; and
• An increase of $1 million related to other miscellaneous factors.
Depreciation and amortization. Depreciation and amortization expenses were $77 million higher for the year ended December
31, 2015 compared with the prior year primarily related to:
• An increase of $34 million related to the absence of 2014 Four Corners cost deferrals and the related 2015
amortization;
• An increase of $16 million related to the Four Corners acquisition adjustment;
• An increase of $20 million due to increased plant in service;
• An increase of $10 million related to the regulatory treatment of the Palo Verde sale leaseback, which is offset in
noncontrolling interests; and
• A decrease of $3 million due to other miscellaneous factors.
All other income and expenses, net. All other income and expenses, net, were $9 million lower for the year ended
December 31, 2015 compared with the prior year primarily due to the return on the Four Corners acquisition in 2014.
Interest charges, net of allowance for borrowed funds used during construction. Interest charges, net of allowance for
borrowed funds used during construction, decreased $6 million for the year ended December 31, 2015 compared with the prior year,
primarily because of lower interest rates on our debt in the current year.
Income taxes. Income taxes were $15 million higher for the year ended December 31, 2015 compared with the prior year
primarily due to the effects of higher pretax income in the current year.
Operating Results – 2014 compared with 2013.
Our consolidated net income attributable to common shareholders for the year ended December 31, 2014 was $398 million,
compared with $406 million for the prior year. The results reflect a decrease of approximately $4 million for the regulated electricity
segment primarily due to higher fossil generation costs, lower retail sales due to the effects of weather, higher property taxes, and lower
retail transmission revenues. These
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