Regulatory Assets & Liabilities

12 Months Ended

Dec. 31, 2011

Regulatory Assets and Liabilities [Abstract]

4.	Regulatory Assets & Liabilities

Regulatory Assets

Regulatory assets consist of the following:


	At December 31,
(In millions)	2011		2010
Future amounts recoverable from ratepayers related to:
Benefit obligations (See Note 11)	$	126.0	$	92.5
Deferred Income taxes (See Notes 10 & 18)		1.3		19.2
Asset retirement obligations & other		2.3		2.1
		129.6		113.8
Amounts deferred for future recovery related to:
Deferred coal costs (See Note 20)		17.7		-
Cost recovery riders & other		6.4		2.8
		24.1		2.8
Amounts currently recovered in customer rates related to:
Unamortized debt issue costs & hedging proceeds		34.3		35.7
Demand side management programs		6.3		9.5
Indiana authorized trackers		24.3		17.3
Ohio authorized trackers		1.0		2.0
Premiums paid to reacquire debt		3.3		3.8
Other base rate recoveries		3.1		4.5
		72.3		72.8
Total regulatory assets	$	226.0	$	189.4

Of the $72.3 million currently being recovered in customer rates, $6.3 million that is associated with demand side management programs is earning a return. The weighted average recovery period of regulatory assets currently being recovered is 17 years. The Company has rate orders for all deferred costs not yet in rates and therefore believes that future recovery is probable.

Assets arising from benefit obligations represent the funded status of retirement plans less amounts previously recognized in the statement of income. The Company records a Regulatory asset for that portion related to its rate regulated utilities. If the cost is ultimately recognized as a periodic cost, it will be recovered through rates charged to customers. See Note 11.

Regulatory Liabilities

At December 31, 2011 and 2010, the Company has approximately $345.2 million and $333.5 million, respectively, in Regulatory liabilities. Of these amounts, $320.9 million and $307.5 million relate to cost of removal obligations. The remaining amounts primarily relate to timing differences associated with asset retirement obligations and deferred financing costs.