Allegheny Power 2015 Annual Report Download - page 86
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ThefollowingtableprovidesinformationaboutthecompositionofnetregulatoryassetsasofDecember31,2015andDecember31,
2014,andthechangesduringtheyearendedDecember31,2015:
RegulatoryAssetsbySource
December31,
2015
December31,
2014
Increase
(Decrease)
(Inmillions)
Regulatorytransitioncosts
$
185
$
240
$
(55
)
Customerreceivablesforfutureincometaxes
355
370
(15
)
Nucleardecommissioningandspentfueldisposalcosts
(272
)
(305
)
33
Assetremovalcosts
(372
)
(254
)
(118
)
Deferredtransmissioncosts
115
90
25
Deferredgenerationcosts
243
281
(38
)
Deferreddistributioncosts
335
182
153
Contractvaluations
186
153
33
Stormrelatedcosts
403
465
(62
)
Other
170
189
(19
)
NetRegulatoryAssetsincludedontheConsolidatedBalanceSheets
$
1,348
$
1,411
$
(63
)
Regulatoryassetsthatdonotearnacurrentreturntotaledapproximately $148millionand$488millionasofDecember31,2015and
2014, respectively,primarilyrelatedtostormdamagecosts.JCP&L'sregulatoryassetrelatedto2011and2012stormdamagecosts
beganearningareturnonApril1,2015.EffectivewiththeapprovedsettlementonApril9,2015,associatedwiththeirgeneralbase
ratecase,thePennsylvaniaCompaniestransferredthenetbookvalueoflegacymetersfromplantinservicetoregulatoryassets,
whichisbeingrecoveredoverfiveyears.
AsofDecember31,2015 andDecember31,2014,FirstEnergyhadapproximately$116millionand$243million ofnetregulatory
liabilitiesthatareprimarilyrelatedtoassetremovalcosts.Netregulatoryliabilitiesareclassifiedwithinothernoncurrentliabilitieson
theConsolidatedBalanceSheets.
REVENUESANDRECEIVABLES
TheUtilities'principalbusinessisprovidingelectricservicetocustomersinOhio,Pennsylvania,WestVirginia,NewJerseyand
Maryland.FES'principalbusinessissupplyingelectricpowertoendusecustomersthroughretailandwholesalearrangements,
includingaffiliatedcompanypowersalestomeetaportionofthePOLRanddefaultservicerequirements,andcompetitiveretailsales
tocustomersprimarilyinOhio,Pennsylvania,Illinois,Michigan,NewJerseyandMaryland.Retailcustomersaremeteredonacycle
basis.
Electricrevenuesarerecordedbasedonenergydeliveredthroughtheendofthecalendarmonth.Anestimateofunbilledrevenuesis
calculatedtorecognizeelectricserviceprovidedfromthelastmeterreadingthroughtheendofthemonth.Thisestimateincludes
manyfactors,amongwhicharehistoricalcustomerusage,loadprofiles,estimatedweatherimpacts,customershoppingactivityand
pricesineffectforeachclassofcustomer.Ineachaccountingperiod,FirstEnergyaccruestheestimatedunbilledamountasrevenue
andreversestherelatedpriorperiodestimate.
Receivablesfromcustomersincluderetailelectricsalesanddistributiondeliveriestoresidential,commercialandindustrialcustomers
fortheUtilities,andretailandwholesalesalestocustomersforFES.Therewasnomaterialconcentrationofreceivablesasof
December31,2015and2014withrespecttoanyparticularsegmentofFirstEnergy’scustomers.Billedandunbilledcustomer
receivablesasofDecember31,2015and2014areincludedbelow.