Regulatory Matters

3 Months Ended

Mar. 31, 2023

(2)

Regulatory Matters

We had the following regulatory assets and liabilities (in thousands):


	As of			As of
	March 31, 2023			December 31, 2022
Regulatory assets
Winter Storm Uri (a)	$	253,835		$	347,980
Deferred energy and fuel cost adjustments (b)		79,020			72,580
Deferred gas cost adjustments (b)		16,047			12,147
Gas price derivatives (b)		-			8,793
Deferred taxes on AFUDC (b)		7,482			7,333
Employee benefit plans and related deferred taxes (c)		88,710			89,259
Environmental (b)		1,341			1,343
Loss on reacquired debt (b)		18,764			19,213
Deferred taxes on flow through accounting (b)		74,022			69,529
Decommissioning costs (b)		2,850			3,472
Other regulatory assets (b)		19,798			21,332
Total regulatory assets		561,869			652,981
Less current regulatory assets		(214,838	)		(260,312	)
Regulatory assets, non-current	$	347,031		$	392,669

Regulatory liabilities
Deferred energy and gas costs (b)	$	106,030		$	41,722
Employee benefit plan costs and related deferred taxes (c)		33,839			34,258
Cost of removal (b)		177,453			175,614
Excess deferred income taxes (c)		248,126			254,833
Other regulatory liabilities (c)		11,613			12,146
Total regulatory liabilities		577,061			518,573
Less current regulatory liabilities		(110,100	)		(46,013	)
Regulatory liabilities, non-current	$	466,961		$	472,560

(a)

Timing of Winter Storm Uri incremental cost recovery and associated carrying costs vary by jurisdiction.

(b)

Recovery or repayment of costs, but we are not allowed a rate of return.

(c)

In addition to recovery or repayment of costs, we are allowed a return on a portion of this amount or a reduction in rate base.

Regulatory Activity

Except as discussed below, there have been no other significant changes to our Regulatory Matters from those previously disclosed in Note 2 of the Notes to the Consolidated Financial Statements in our 2022 Annual Report on Form 10-K.

RMNG

On April 7, 2023, RMNG filed a settlement agreement with the CPUC for its rate review filed on October 7, 2022. The agreement is expected to generate $8.2 million in new annual revenue and establishes a weighted average cost of capital of 6.93% with a capital structure that reflects an equity range of 50% to 52%, a debt range of 50% to 48% and a return on equity range of 9.5% to 9.7%. The settlement also shifts $8.3 million of SSIR revenues to base rates and terminates the SSIR. The agreement is awaiting a decision by an administrative law judge, with new rates expected in the third quarter of 2023.

Wyoming Electric

On June 1, 2022, Wyoming Electric filed a rate review with the WPSC seeking recovery of significant infrastructure investments in its 1330-mile electric distribution and 59-mile electric transmission systems. On January 26, 2023, the WPSC approved a settlement agreement with intervening parties for a general rate increase. The settlement is expected to generate $8.7 million in new annual revenue with a capital structure of 52% equity and 48% debt and a return on equity of 9.75%. New rates were effective March 1, 2023. The agreement also includes approval of a new rider that will be filed annually to recover transmission investment and expenses.