in 2017, $18 million in 2016, and $12 million in 2015. LFCR revenues are included in Retail Revenues on the Consolidated Statements of Income.

REGULATORY ASSETS AND LIABILITIES

Regulatory assets and liabilities recorded in the balance sheet are summarized in the table below:



	Remaining Recovery Period (years)	December 31,
($ in millions)	Remaining Recovery Period (years)	2017		2016
Regulatory Assets
Pension and Other Postretirement Benefits (Note 8)	Various	$	126	$	128
Early Generation Retirement Costs ⁽¹⁾	Various	84		—
Income Taxes Recoverable through Future Rates ⁽²⁾	Various	40		29
Final Mine Reclamation and Retiree Healthcare Costs ⁽³⁾	20	31		27
Lost Fixed Cost Recovery	1	29		23
Property Tax Deferrals ⁽⁴⁾	1	24		23
Springerville Unit 1 Leasehold Improvements ⁽⁵⁾	6	14		17
Sundt Coal Handling Facilities ⁽⁶⁾	N/A	—		14
Other Regulatory Assets	Various	40		20
Total Regulatory Assets		388		281
Less Current Portion	1	94		56
Total Non-Current Regulatory Assets		$	294	$	225



Regulatory Liabilities
Income Taxes Payable through Future Rates ⁽²⁾	Various	$	353	$	3
Net Cost of Removal ⁽⁷⁾	Various	180		270
Renewable Energy Standard	Various	44		32
Deferred Investment Tax Credits ⁽⁸⁾	Various	14		23
Purchased Power and Fuel Adjustment Clause	1	9		38
Other Regulatory Liabilities	Various	5		11
Total Regulatory Liabilities		605		377
Less Current Portion	1	89		76
Total Non-Current Regulatory Liabilities		$	516	$	301

⁽¹⁾

Includes the NBV and other related costs of Navajo and Sundt Units 1 and 2 reclassified from Utility Plant, Net on the Consolidated Balance Sheets due to the planned early retirement of the facilities. As of December 31, 2017, Navajo and Sundt Units 1 and 2 are being fully recovered in base rates using various useful lives through 2030. See Note 3 for additional information related to the planned early retirement of Navajo and Sundt Units 1 and 2.


⁽²⁾	Amortized over the life of the assets. The balances include changes related to the revaluation of tax assets and liabilities as a result of the TCJA. See Note 1 and Note 12 for additional information regarding income taxes.


⁽³⁾	Represents costs associated with TEP’s jointly-owned facilities at San Juan, Four Corners, and Navajo. TEP recognizes these costs at future value and is permitted to fully recover these costs through the PPFAC mechanism. The majority of final mine reclamation costs are expected to occur through 2037.

⁽⁴⁾

Property taxes are recorded as a regulatory asset based on historical ratemaking treatment allowing regulated utilities recovery of property taxes on a pay-as-you-go or cash basis. TEP records a liability to reflect the accrual for financial reporting purposes and an offsetting regulatory asset to reflect recovery for regulatory purposes. This asset is fully recovered in rates with a recovery period of approximately six months.


⁽⁵⁾	Represents investments TEP made, which were previously recorded in Plant in Service on the Consolidated Balance Sheets, to ensure that the facilities continued to provide safe, reliable service to TEP's customers. TEP received ACC authorization to recover leasehold improvement costs at Springerville Unit 1 over a 10-year amortization period.

⁽⁶⁾

In June 2014, the EPA issued a final rule that required TEP to either: (i) install, by mid-2017, SNCR and dry sorbent injection if Sundt Unit 4 continued to use coal as a fuel source; or (ii) permanently eliminate coal as a fuel source as a better-than-BART alternative by the end of 2017. In March 2016, TEP notified the EPA of its decision to permanently eliminate coal as a fuel source, and transferred the NBV of the Sundt Coal Handling Facilities to a regulatory asset. TEP applied excess depreciation reserves against the unrecovered NBV as approved in the 2017 Rate Order.

⁽⁷⁾

Represents an estimate of the future cost of retirement net of salvage value. These are amounts collected through revenue for transmission, distribution, generation plant, and general and intangible plant which are not yet expended. As a result of the 2017 Rate Order, $87 million was transferred from Net Cost of Removal to Accumulated Depreciation and Amortization to reflect the impact of the revised depreciation study on the estimated cost of removal.


⁽⁸⁾	Represents federal energy credits generated after 2011 that are amortized over the tax life of the underlying asset.