SUPPLEMENTAL CASH FLOW (Tables)

12 Months Ended

Dec. 31, 2017

Supplemental Cash Flow Information [Abstract]

Schedule of Cash Flow, Supplemental Disclosures

CASH TRANSACTIONS

	Years Ended December 31,
(in millions)	2017		2016		2015
Interest, Net of Amounts Capitalized	$	61	$	61	$	65
Income Taxes (1)	—		—		—

⁽¹⁾  TEP did not pay federal or state income taxes due to net operating loss carryforwards offsetting taxable income.

NON-CASH TRANSACTIONS

Other significant non-cash investing and financing activities that affected recognized assets and liabilities but did not result in cash receipts or payments were as follows:

	Years Ended December 31,
(in millions)	2017			2016			2015
Net Cost of Removal Increase (Decrease) (1)	$	(88	)	$	8		$	1
Accrued Capital Expenditures	24			29			28
Commitment to Purchase Capital Lease Interests	—			36			—
Asset Retirement Obligations Increase (Decrease) (2)	10			(1		)	3

⁽¹⁾  Represents an accrual for future cost of retirement net of salvage values that does not impact earnings. In the 2017 Rate Order, the ACC authorized a new depreciation study for TEP modifying its depreciation reserves and rates. See Note 2 for additional information.

⁽²⁾  The non-cash additions to AROs and related capitalized assets represent a revision of estimated asset retirement cost due to changes in timing and amount of the expected future AROs.