Progress Energy 2010 Annual Report Download - page 76

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
At December 31 the balances of regulatory assets
(liabilities) were as follows:
(in millions) 2010 2009
Deferred fuel costs – current (Notes 7B and 7C) $169 $105
Nuclear deferral (Notes 7C) 737
Total current regulatory assets 176 142
Deferred fuel cost – long-term –62
Nuclear deferral (Note 7C)(a) 178 239
Deferred impact of ARO (Note 4C)(b) 122 99
Income taxes recoverable through future rates(c) 302 264
Loss on reacquired debt(d) 31 35
Postretirement benefits (Note 16)(e) 1,105 945
Derivative mark-to-market adjustment (Note 17A)(f) 505 436
DSM / Energy-efficiency deferral (Note 7B)(g) 57 19
Other 74 80
Total long-term regulatory assets 2,374 2,179
Environmental (Note 7C) (45) (24)
Deferred energy conservation cost and other current regulatory liabilities (14) (3)
Total current regulatory liabilities (59) (27)
Non-ARO cost of removal (Note 4C)(b) (1,857) (1,866)
Deferred impact of ARO (Note 4C)(b) (143) (150)
Net฀nuclear฀decommissioning฀trust฀unrealized฀gains฀(Note฀4C)(h) (421) (295)
Storm reserve (Note 7C)(i) (136) (136)
Other (78) (63)
Total long-term regulatory liabilities (2,635) (2,510)
Net regulatory liabilities $(144) $(216)
The฀recovery฀and฀amortization฀periods฀for฀these฀regulatory฀assets฀and฀(liabilities)฀at฀December฀31,฀2010,฀are฀as฀follows:
(a)฀฀Recorded฀and฀recovered฀or฀amortized฀as฀approved฀by฀the฀appropriate฀state฀utility฀commission฀over฀a฀period฀not฀exceeding฀five฀years.
(b) Asset retirement and removal liabilities are recorded over the related property lives, which may range up to 65 years, and will be settled and
adjusted following completion of the related activities.
(c) Income taxes recoverable through future rates are recovered over the related property lives, which may range up to 65 years.
(d) Recovered over either the remaining life of the original issue or, if refinanced, over the life of the new issue, which may range up to
30 years.
(e)฀฀Recovered฀and฀amortized฀over฀the฀remaining฀service฀period฀of฀ employees.฀ In฀accordance฀with฀a฀ 2009฀FPSC฀ order,฀PEF’s฀2009฀deferred฀
pension฀expense฀of฀$34฀million฀will฀be฀amortized฀to฀the฀extent฀that฀annual฀pension฀expense฀is฀less฀than฀the฀$27฀million฀allowance฀provided฀
for in base rates (See Note 16).
(f)฀฀Related฀to฀derivative฀unrealized฀gains฀and฀losses฀that฀are฀recorded฀as฀a฀regulatory฀liability฀or฀asset,฀respectively,฀until฀the฀contracts฀are฀
settled.฀After฀contract฀settlement฀and฀consumption฀of฀the฀related฀fuel,฀the฀realized฀gains฀or฀losses฀are฀passed฀through฀the฀fuel฀cost-recovery฀
clause.
(g)฀฀Recorded฀and฀recovered฀or฀amortized฀as฀approved฀by฀the฀appropriate฀state฀utility฀commission฀over฀a฀period฀not฀exceeding฀10฀years.
(h)฀฀Related฀to฀unrealized฀gains฀and฀losses฀on฀NDT฀funds฀that฀are฀recorded฀as฀a฀regulatory฀asset฀or฀liability,฀respectively,฀until฀the฀funds฀are฀used฀
to decommission a nuclear plant.
(i)฀฀Utilized฀as฀storm฀restoration฀expenses฀are฀incurred.