Regulated Operations (Tables)

6 Months Ended

Jun. 30, 2016

Our regulatory assets and liabilities recorded on our unaudited Condensed Consolidated Balance Sheets as of the dates presented are summarized in the following table.



In millions	June 30, 2016		December 31, 2015		June 30, 2015
Regulatory assets
Recoverable ERC	$	18	$	31	$	27
Recoverable pension and retiree welfare benefit costs	12		12		11
Unrecovered weather normalization	9		—		1
Deferred natural gas costs	—		6		—
Recoverable seasonal rates	—		10		—
Other	8		9		9
Regulatory assets – current	47		68		48
Recoverable ERC	386		370		350
Recoverable pension and retiree welfare benefit costs	109		113		105
Recoverable regulatory infrastructure program costs	84		83		77
Long-term debt fair value adjustment	63		66		70
Other	37		38		40
Regulatory assets – long-term	679		670		642
Total regulatory assets	$	726	$	738	$	690
Regulatory liabilities
Accumulated removal costs	$	52	$	53	$	25
Bad debt over collection	49		42		27
Accrued natural gas costs	29		24		67
Deferred seasonal rates	8		—		8
Other	18		15		27
Regulatory liabilities – current	156		134		154
Accumulated removal costs	1,552		1,538		1,544
Regulatory income tax liability	24		27		27
Bad debt over collection	23		21		18
Unamortized investment tax credit	19		20		21
Other	9		5		12
Regulatory liabilities – long-term	1,627		1,611		1,622
Total regulatory liabilities	$	1,783	$	1,745	$	1,776

Environmental Exit Costs by Cost

The following table provides additional information on the estimated costs to remediate our current and former operating sites as of June 30, 2016.



Dollars in millions	# of sites	Probabilistic model cost estimates	Engineering-based cost estimates		Amount recorded		Expected costs over next 12 months		Cost recovery period
Illinois ⁽¹⁾	26	$206 - $470	$	46	$	252	$	27	As incurred
New Jersey	6	111 - 190	8		119		14		7 years
Georgia and Florida	13	38 - 64	24		62		18		5 years
North Carolina ⁽²⁾	1	n/a	5		5		—		No recovery
Total	46	$355 - $724	$	83	$	438	$	59


(1)	Nicor Gas is responsible in whole or in part for 26 MGP sites, two of which have been remediated and their use is no longer restricted by the environmental condition of the property. Nicor Gas and Commonwealth Edison Company are parties to an agreement to cooperate in cleaning up residue at 23 of the sites. Nicor Gas’ allocated share of cleanup costs for these sites is 52%.


(2)	We have no regulatory recovery mechanism for the site in North Carolina and there is no amount included within our regulatory assets. Changes in estimated costs are recognized in income during the period of change.

Regulatory Asset Off Balance Sheet [Member]

Regulated Operations [Line Items]

Schedule of Regulatory Assets

The following table illustrates our authorized ratemaking amounts that are not recognized on our unaudited Condensed Consolidated Balance Sheets. These amounts are primarily composed of an allowed equity rate of return on assets associated with certain of our regulatory infrastructure programs. These amounts will be recognized as revenues in our financial statements in the periods they are billable to our customers.



In millions	June 30, 2016		December 31, 2015		June 30, 2015
Atlanta Gas Light ⁽¹⁾	$	106	$	103	$	126
Virginia Natural Gas	12		12		11
Elizabethtown Gas	5		4		3
Nicor Gas	3		3		1
Total	$	126	$	122	$	141


(1)	In October 2015, Atlanta Gas Light received an order from the Georgia Commission, which included a final determination of the true-up recovery related to the PRP that allows Atlanta Gas Light to recover $144 million of the $178 million of incurred and allowed costs that were deferred for future recovery.