Xcel Energy 2012 Annual Report Download - page 154

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Reductions to expense for internally-funded portions in 2012, 2011 and 2010 are a direct result of the 2008 decommissioning
study jurisdictional allocation and 100 percent external funding approval, effectively unwinding the remaining internal fund over
the previously licensed operating life of the unit (2010 for Monticello, 2013 for Prairie Island Unit 1 and 2014 for Prairie Island
Unit 2). Due to the immaterial amount remaining in the internal fund, the entire remaining amount was unwound for Prairie Island
1 and 2 in 2012. As of December 2012, there is no balance remaining in the internally funded decommissioning account. The
2011 nuclear decommissioning filing approved in 2012 has been used for the regulatory presentation.
15. Regulatory Assets and Liabilities
Xcel Energy Inc. and subsidiaries prepare their consolidated financial statements in accordance with the applicable accounting
guidance, as discussed in Note 1. Under this guidance, regulatory assets and liabilities are created for amounts that regulators may
allow to be collected, or may require to be paid back to customers in future electric and natural gas rates. Any portion of Xcel
Energy’s business that is not regulated cannot establish regulatory assets and liabilities. If changes in the utility industry or the
business of Xcel Energy no longer allow for the application of regulatory accounting guidance under GAAP, Xcel Energy would
be required to recognize the write-off of regulatory assets and liabilities in net income or OCI.
The components of regulatory assets shown on the consolidated balance sheets at Dec. 31, 2012 and 2011 are:
(Thousands of Dollars)
See Note(s)
Remaining
Amortization Period
Dec. 31, 2012 Dec. 31, 2011
Regulatory Assets
Current Noncurrent Current Noncurrent
Pension and retiree medical obligations (a) . . 9 Various $ 100,713 $ 1,552,375
$
130,764
$
1,299,399
Recoverable deferred taxes on AFUDC
recorded in plant .......................
1 Plant lives - 321,680 - 294,549
Contract valuation adjustments (b) .......... 1, 11
Term of related
contract
3,775 147,755 73,608 142,210
Net AROs (c) ............................. 1, 13, 14 Plant lives - 178,146 - 209,626
Conservation programs (d) ................. 1 One to six years 60,956 84,146 46,769 80,981
Environmental remediation costs........... 1, 13 Various 3,986 109,377 2,309 109,720
Renewable resources and environmental
initiatives ..............................
13 One to four years 59,518 38,138 51,622 25,378
Depreciation differences .................. 1
One to seventeen
years
5,274 50,057 4,150 54,892
Purchased power contract costs ............ 13
Term of related
contract
- 63,134 - 54,471
Losses on reacquired debt ................. 4
Term of related
debt
5,917 42,060 5,554 43,729
Nuclear refueling outage costs ............. 1 One to two years 56,035 22,647 40,365 8,810
Gas pipeline inspection and remediation
costs ..................................
12 Various 5,416 27,560 13,779 27,511
Recoverable purchased natural gas and
electric energy costs ....................
1 One to two years 32,098 8,340 17,031 9,867
State commission adjustments ............. 1 Plant lives 374 12,181 311 9,399
Prairie Island EPU (e)...................... 12
Pending rate
cases
- 67,590 - -
Property tax .............................. Three years 6,005 12,010 - -
Other .................................... Various 12,910 24,833 15,973 18,466
Total regulatory assets .................. $ 352,977 $ 2,762,029
$
402,235
$
2,389,008
(a) Includes $330.3 million and $365.3 million for the regulatory recognition of the NSP-Minnesota pension expense of which $24.3 million and $35.2 million
is included in the current asset at Dec. 31, 2012 and Dec. 31, 2011, respectively. The 2011 amounts are offset by $3.9 million for PSCo unamortized prior
service costs at Dec. 31, 2011. Also included are $21.5 million and $27.2 million of regulatory assets related to the nonqualified pension plan of which $2.2
million and $12.1 million is included in the current asset at Dec. 31, 2012 and Dec. 31, 2011, respectively.
(b) Includes the fair value of certain long-term PPAs used to meet energy capacity requirements and valuation adjustments on natural gas commodity purchases.
(c) Includes amounts recorded for future recovery of AROs, less amounts recovered through nuclear decommissioning accruals and gains from
decommissioning investments.
(d) Includes costs for conservation programs, as well as incentives allowed in certain jurisdictions.