Regulatory Assets & Liabilities

Regulatory Assets

Regulatory assets consist of the following:



	At December 31,
(In millions)	2017		2016
Future amounts recoverable from ratepayers related to:
Benefit obligations (See Note 9)	$	102.8	$	102.6
Net deferred income taxes (See Note 8)	6.2		(17.1		)
Asset retirement obligations & other	24.3		—
	133.3		85.5
Amounts deferred for future recovery related to:
Cost recovery riders & other	142.4		91.6
	142.4		91.6
Amounts currently recovered in customer rates related to:
Indiana authorized trackers	75.9		64.2
Ohio authorized trackers	28.4		22.2
Loss on reacquired debt & hedging costs	22.7		24.1
Deferred coal costs and other	14.1		21.2
	141.1		131.7
Total regulatory assets	$	416.8	$	308.8

Of the $141 million currently being recovered in customer rates, no amounts are earning a return. The weighted average recovery period of regulatory assets currently being recovered in base rates, which totals $23 million, is 20 years. The remainder of the regulatory assets are being recovered timely through periodic recovery mechanisms. 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. See Note 09.

Regulatory assets for asset retirement obligations are a result of costs incurred for expected retirement activity for the Company's ash ponds beyond what has been recovered in rates. The Company believes the recovery of these assets are probable as the costs are currently being recovered in rates.

Regulatory Liabilities

At December 31, 2017 and 2016, the Company had regulatory liabilities of approximately $937 million and $454 million, respectively, $477 million and $452 million of which related to cost of removal obligations, and at December 31, 2017, $459 million to deferred taxes. The deferred tax related regulatory liability is primarily the result of the $446 million revaluation of deferred taxes at December 31, 2017 at the reduced federal corporate tax rate. These regulatory liabilities are expected to be refunded to customers over time following state regulator approval.