Regulatory Assets and Liabilities
As a rate regulated enterprise, Central meets the requirements for accounting under the Effects of Certain Types of Regulation Topic of the Accounting Standards Codification, or ASC. As such, certain costs that would otherwise be charged to expense are deferred as regulatory assets based on expected recovery from customers in future rates. Likewise, certain credits that would otherwise be recognized in income are deferred as regulatory liabilities pending refund or return to customers through future rates. Recognition of regulatory assets or liabilities is generally based on specific regulatory requirements or precedent for each such matter.
The following regulatory assets or liabilities are included on the accompanying Consolidated Balance Sheets as Costs recoverable from customers or Costs refundable to customers at December 31, 2013 and 2012 and classified as current or noncurrent depending on the expected timing of recovery (expressed in thousands):
|
| | | | | | | | |
| | 2013 | | 2012 |
Current Assets: | | | | |
Environmental costs | | $ | 750 |
| | $ | 750 |
|
Fuel costs | | — |
| | 3,240 |
|
Total Current Assets | | 750 |
| | 3,990 |
|
Noncurrent Assets: | | | | |
Environmental costs | | 222 |
| | 450 |
|
Income taxes on AFUDC equity | | 5,764 |
| | 5,166 |
|
Gas imbalance cash cost recoverable | | 64 |
| | 69 |
|
Postretirement benefits other than pensions | | 23,984 |
| | 38,282 |
|
Pensions | | 23,652 |
| | 40,680 |
|
Asset retirement obligations | | 362 |
| | 620 |
|
Total Noncurrent Assets | | 54,048 |
| | 85,267 |
|
Total Assets | | 54,798 |
| | 89,257 |
|
|
| | | | | | | | |
Current Liabilities: | | | | |
Costs refundable to customers | | 88 |
| | 3 |
|
Total Current Liabilities | | 88 |
| | 3 |
|
Noncurrent Liabilities: | | | | |
Gas imbalance cash cost refundable | | 92 |
| | 177 |
|
Postretirement benefits other than pensions | | 3,701 |
| | — |
|
Total Noncurrent Liabilities | | 3,793 |
| | 177 |
|
Total Liabilities | | 3,881 |
| | 180 |
|
Net Regulatory Assets | | $ | 50,917 |
| | $ | 89,077 |
|
These amounts are either included in Central’s current rate filing or covered by specific rate mechanisms, which govern the timing of refunds or recovery.
