Allegheny Power 2014 Annual Report Download - page 82

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67
The following table provides information about the composition of net regulatory assets as of December 31, 2014 and December 31,
2013, and the changes during the year ended December 31, 2014:
Regulatory Assets by Source December 31,
2014 December 31,
2013 Increase
(Decrease)
(In millions)
Regulatory transition costs $ 240 $ 266 $ (26)
Customer receivables for future income taxes 370 518 (148)
Nuclear decommissioning and spent fuel disposal costs (305) (198) (107)
Asset removal costs (254) (362) 108
Deferred transmission costs 90 112 (22)
Deferred generation costs 281 346 (65)
Deferred distribution costs 182 194 (12)
Contract valuations 153 260 (107)
Storm-related costs 465 455 10
Other 189 263 (74)
Net Regulatory Assets included in the Consolidated Balance
Sheet $ 1,411 $ 1,854 $ (443)
Regulatory assets that do not earn a current return totaled approximately $488 million and $477 million as of December 31, 2014
and 2013, respectively, primarily related to storm damage costs of which approximately $360 million relates to JCP&L for which
the recovery period is subject to current rate and regulatory proceedings (see Note 14, Regulatory Matters).
As of December 31, 2014 and December 31, 2013, FirstEnergy had approximately $243 million and $440 million of net regulatory
liabilities that are primarily related to asset removal costs and are classified within other noncurrent liabilities on the Consolidated
Balance Sheets, as opposed to being included in the net regulatory assets shown above.
REVENUES AND RECEIVABLES
The Utilities' principal business is providing electric service to customers in Ohio, Pennsylvania, West Virginia, New Jersey and
Maryland. FES' principal business is supplying electric power to end-use customers through retail and wholesale arrangements,
including affiliated company power sales to meet a portion of the POLR and default service requirements of the Ohio and Pennsylvania
Companies and competitive retail sales to customers primarily in Ohio, Pennsylvania, Illinois, Michigan, New Jersey and Maryland.
Retail customers are metered on a cycle basis.
Electric revenues are recorded based on energy delivered through the end of the calendar month. An estimate of unbilled revenues
is calculated to recognize electric service provided from the last meter reading through the end of the month. This estimate includes
many factors, among which are historical customer usage, load profiles, estimated weather impacts, customer shopping activity
and prices in effect for each class of customer. In each accounting period, FirstEnergy accrues the estimated unbilled amount as
revenue and reverses the related prior period estimate.
Receivables from customers include retail electric sales and distribution deliveries to residential, commercial and industrial customers
for the Utilities, and retail and wholesale sales to customers for FES. There was no material concentration of receivables as of
December 31, 2014 and 2013 with respect to any particular segment of FirstEnergy’s customers. Billed and unbilled customer
receivables as of December 31, 2014 and 2013 are shown below.