Supplementary Financial Information

9 Months Ended

Sep. 30, 2022

Supplementary Financial Information [Abstract]

SUPPLEMENTARY FINANCIAL INFORMATION

10. SUPPLEMENTARY FINANCIAL INFORMATION

Other Deductions and (Income)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Professional fees	$	2	$	2	$	5	$	6
Recoverable pension and OPEB – non-service costs		14		13		41		40
Non-recoverable pension and OPEB		-		1		-		2
Gain on sale of non-utility property		-		(1)		(11)		(1)
AFUDC – equity income		(9)		(6)		(23)		(19)
Interest and investment loss (income) – net		1		(1)		5		(8)
Other		1		-		2		2
Total other deductions and (income) – net	$	9	$	8	$	19	$	22

Interest Expense and Related Charges

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Interest	$	117	$	104	$	335	$	310
Amortization of discount, premium and debt issuance costs		3		3		8		8
Less AFUDC – capitalized interest portion		(5)		(3)		(12)		(10)
Total interest expense and related charges	$	115	$	104	$	331	$	308

Trade Accounts and Other Receivables

Trade accounts and other receivables reported on our balance sheets consisted of the following:

	At September 30,		At December 31,
	2022		2021
Gross trade accounts and other receivables	$	923	$	750
Allowance for uncollectible accounts		(13)		(12)
Trade accounts receivable – net	$	910	$	738

At September 30, 2022, REP subsidiaries of our two largest customers represented 27% and 24% of the trade accounts receivable balance. At December 31, 2021, REP subsidiaries of our two largest customers represented 22% and 21% of the trade accounts receivable balance.

Under a PUCT rule relating to the Certification of Retail Electric Providers, write-offs of uncollectible amounts owed by REPs are deferred as a regulatory asset.

Investments and Other Property

Investments and other property reported on our balance sheets consisted of the following:

	At September 30,		At December 31,
	2022		2021
Assets related to employee benefit plans	$	120	$	133
Non-utility property – land		12		20
Other		2		2
Total investments and other property	$	134	$	155

Property, Plant and Equipment

Property, plant and equipment – net reported on our balance sheets consisted of the following:

	Composite Depreciation Rate/	At September 30,		At December 31,
	Average Life of Depreciable Plant at September 30, 2022	2022		2021
Assets in service:
Distribution	2.5% / 39.5 years	$	16,843	$	15,994
Transmission	2.9% / 34.5 years		13,372		13,075
Other assets	5.9% / 16.9 years		1,952		1,960
Total			32,167		31,029
Less accumulated depreciation			8,975		8,659
Net of accumulated depreciation			23,192		22,370
Construction work in progress			1,213		557
Held for future use			26		27
Property, plant and equipment – net		$	24,431	$	22,954

Intangible Assets

Intangible assets (other than goodwill) reported on our balance sheets as part of property, plant and equipment consisted of the following:

	At September 30, 2022						At December 31, 2021
	Gross						Gross
	Carrying		Accumulated				Carrying		Accumulated
	Amount		Amortization		Net		Amount		Amortization		Net
Identifiable intangible assets subject to amortization:
Land easements	$	652	$	121	$	531	$	641	$	117	$	524
Capitalized software		1,049		449		600		1,066		451		615
Total	$	1,701	$	570	$	1,131	$	1,707	$	568	$	1,139

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Aggregate amortization expense for intangible assets totaled $19 million and $18 million for the three months ended September 30, 2022 and 2021, respectively, and $57 million and $52 million for the nine months ended September 30, 2022 and 2021, respectively. The estimated annual amortization expense for the five-year period from 2022 to 2026 is as follows:

Year	Amortization Expense
2022	$	77
2023	$	76
2024	$	76
2025	$	76
2026	$	76

Operating Lease and Other Obligations

Operating lease and other obligations reported on our balance sheets consisted of the following:

	At September 30,		At December 31,
	2022		2021
Operating lease liabilities	$	132	$	133
Investment tax credits		3		4
Customer advances for construction – noncurrent		67		30
Other		75		64
Total operating lease and other obligations	$	277	$	231

Supplemental Cash Flow Information

	Nine Months Ended September 30,
	2022		2021
Cash payments related to:
Interest	$	296	$	285
Less capitalized interest		(12)		(10)
Interest payments (net of amounts capitalized)	$	284	$	275
Amount in lieu of income taxes (Note 9):
Federal	$	76	$	48
State		24		23
Total payments in lieu of income taxes	$	100	$	71
Noncash investing activities:
Construction expenditures financed through accounts payable (a)	$	201	$	197
ROU assets obtained in exchange for operating lease obligations	$	30	$	41
Transfer of title to assets constructed for and prepaid by LP&L	$	-	$	150
Donation of property (b)	$	1	$	-

______________

(a)Represents end-of-period accruals.

(b)Represents the fair value of approximately 110 acres of undeveloped urban land donated in 2022.

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