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Other long-term liabilities and deferred credits (Tables)
 12 Months Ended
Dec. 31, 2016
Other Liabilities Disclosure [Abstract]  
Other Long Term Liabilities
Other long-term liabilities consist of the following: 
 
2016
 
2015
Advances in aid of construction (a)
$
105,191

 
$
92,285

Environmental remediation obligation (b)
63,378

 
71,529

Asset retirement obligations (c)
24,822

 
17,799

Customer deposits (d)
14,881

 
15,074

Deferred income (e)
—

 
13,682

Deferred credits (f)
44,544

 
25,544

Other
22,790

 
23,843

 
275,606

 
259,756

Less current portion
(43,157
)
 
(36,621
)
 
$
232,449

 
$
223,135








13.
Other long-term liabilities and deferred credits (continued)
(a)
Advances in aid of construction
The Company’s regulated utilities have various agreements with real estate development companies (the “developers”) conducting business within the Company’s utility service territories, whereby funds are advanced to the Company by the developers to assist with funding some or all of the costs of the development.
In many instances, developer advances can be subject to refund but the refund is non-interest bearing. Refunds of developer advances are made over periods generally ranging from 10 to 40 years. Advances not refunded within the prescribed period are usually not required to be repaid. After the prescribed period has lapsed, any remaining unpaid balance is transferred to contributions in aid of construction and recorded as an offsetting amount to the cost of property, plant and equipment. In 2016, $23,986 (2015 - $4,637) was transferred from advances in aid of construction to contributions in aid of construction.
(b)
Environmental remediation obligation
Prior to their acquisition by the Company, EnergyNorth Gas, Granite State Electric and New England Gas Systems were named as potentially responsible parties for remediation of several sites at which hazardous waste is alleged to have been disposed as a result of historic operations of Manufactured Gas Plants (“MGP”) and related facilities. The Company is currently investigating and remediating, as necessary, those MGP and related sites in accordance with plans submitted to the agency with authority for each of the respective sites.
The Company estimates the remaining undiscounted, unescalated cost of these MGP-related environmental cleanup activities will be $76,853 (2015 - $78,495) which at discount rates ranging from 3.9% to 4.7% represents the recorded accrual of $63,378 as of December 31, 2016 (2015 - $71,529). Approximately $27,976 is expected to be incurred over the next three years with the balance of cash flows to be incurred over the following 28 years.
Changes in the environmental remediation obligation are as follows:
 
2016
 
2015
Opening Balance
$
71,529

 
$
70,072

  Remediation activities
(1,389
)
 
(10,621
)
  Accretion
2,464

 
2,147

  Changes in cash flow estimates
2,088

 
3,171

  Revision in assumptions
(9,101
)
 
(5,843
)
  Foreign exchange rate adjustment
(2,213
)
 
12,603

Closing Balance
$
63,378

 
$
71,529


By rate orders, the Regulator provided for the recovery of actual expenditures for site investigation and remediation over a period of 7 years and accordingly, as of December 31, 2016, the Company has reflected a regulatory asset of $104,160 (2015 - $116,747) for the MGP and related sites (note 7(a)).
(c)
Asset retirement obligations
Asset retirement obligations mainly relate to legal requirements to: (i) remove wind farm facilities upon termination of land leases; (ii) cut (disconnect from the distribution system), purge (cleanup of natural gas and PCB contaminants) and cap gas mains within the gas distribution and transmission system when mains are retired in place, or sections of gas main are removed from the pipeline system; (iii) clean and remove storage tanks containing waste oil and other waste contaminants; and (iv) remove asbestos upon major renovation or demolition of structures and facilities.  During the year, APUC recorded additional asset retirement obligations for renewable generation facilities being constructed of $393 (2015 - $506), changes in estimates of $1,022 (2015 - $nil) and accretion expense of $1,055 (2015 - $854).
(d)
Customer deposits
Customer deposits result from the Company’s obligation by state regulators to collect a deposit from customers of its facilities under certain circumstances when services are connected. The deposits are refundable as allowed under the facilities’ regulatory agreement.  

13.
Other long-term liabilities and deferred credits (continued)
(e)
Deferred income
Proceeds received from insurance in advance of repairs, rates collected subject to dispute and other similar proceeds are deferred until they are virtually certain of being realized.
(f)
Deferred credits
Deferred credits include unresolved contingent consideration related to prior acquisitions which are expected to be paid and deferred tax credits (note 20).
Changes in Environmental Remediation Obligation
Changes in the environmental remediation obligation are as follows:
 
2016
 
2015
Opening Balance
$
71,529

 
$
70,072

  Remediation activities
(1,389
)
 
(10,621
)
  Accretion
2,464

 
2,147

  Changes in cash flow estimates
2,088

 
3,171

  Revision in assumptions
(9,101
)
 
(5,843
)
  Foreign exchange rate adjustment
(2,213
)
 
12,603

Closing Balance
$
63,378

 
$
71,529