2.2.0.25falsefalse0205 - Disclosure - Regulatory Assets and Liabilitiestruefalsefalse1falsefalseUSDfalsefalse1/1/2010 - 12/31/2010
USD ($)
USD ($) / shares
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<!-- Begin Block Tagged Note 5 - us-gaap:DescriptionOfRegulatoryAssetsAndLiabilities-->
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<td>
<b><font style="font-family: Arial, Helvetica">5.  </font></b>
</td>
<td>
<b><font style="font-family: Arial, Helvetica">REGULATORY ASSETS
AND LIABILITIES</font></b>
</td>
</tr>
</table>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">
<b><font style="font-family: Arial, Helvetica">Regulatory
Assets</font></b>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">
The following table summarizes the regulatory asset balances at
December 31, 2010 and 2009:
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<table border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent; text-align: left">
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<tr style="font-size: 8pt" valign="bottom" align="center">
<td nowrap="nowrap" align="left" valign="bottom">
<b>(In thousands)</b>
</td>
<td>
 
</td>
<td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
<b>2010</b>
</td>
<td>
 
</td>
<td>
 
</td>
<td colspan="2" nowrap="nowrap" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
<b>2009</b>
</td>
<td>
 
</td>
</tr>
<tr style="line-height: 3pt; font-size: 1pt">
<td> 
</td>
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<tr valign="bottom" style="background: #cceeff">
<td nowrap="nowrap" align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 10pt">
Regulatory Assets:
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
</tr>
<tr valign="bottom">
<td nowrap="nowrap" align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 20pt">
Revenue accruals:
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 30pt">
Current (including accrued interest of $266 and $2,652 as of
December 31, 2010 and 2009, respectively)
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
$
</td>
<td nowrap="nowrap" align="right" valign="bottom">
28,637
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
$
</td>
<td nowrap="nowrap" align="right" valign="bottom">
82,871
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
</tr>
<tr valign="bottom">
<td align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 30pt">
Non-current (including accrued interest of $22 and $75 as of
December 31, 2010 and 2009, respectively)
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
3,947
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
20,406
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td nowrap="nowrap" align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 20pt">
Other:
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
</tr>
<tr valign="bottom">
<td align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 30pt">
ITCTransmission ADIT Deferral (net of accumulated amortization
of $23,736 and $20,706 as of December 31, 2010 and 2009,
respectively)
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
36,866
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
39,896
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 30pt">
METC ADIT Deferral (net of accumulated amortization of $9,435
and $7,076 as of December 31, 2010 and 2009, respectively)
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
33,021
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
35,380
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
</tr>
<tr valign="bottom">
<td align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 30pt">
METC Regulatory Deferrals (net of accumulated amortization of
$3,086 and $2,314 as of December 31, 2010 and 2009,
respectively)
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
12,342
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
13,114
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 30pt">
Income taxes recoverable related to AFUDC equity
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
28,687
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
22,296
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
</tr>
<tr valign="bottom">
<td align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 30pt">
ITC Great Plains
<font style="white-space: nowrap">Start-up</font> and
Development Regulatory Asset
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
8,783
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
8,757
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 30pt">
KETA Project Regulatory Asset
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
1,748
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
1,202
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
</tr>
<tr valign="bottom">
<td align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 30pt">
Pensions and postretirement
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
16,705
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td nowrap="nowrap" align="right" valign="bottom">
14,279
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
</tr>
<tr valign="bottom" style="font-size: 1pt">
<td>
 
</td>
<td>
 
</td>
<td style="border-top: 1px solid #000000">
 
</td>
<td style="border-top: 1px solid #000000">
 
</td>
<td>
 
</td>
<td>
 
</td>
<td style="border-top: 1px solid #000000">
 
</td>
<td style="border-top: 1px solid #000000">
 
</td>
<td>
 
</td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td nowrap="nowrap" align="left" valign="bottom">
<div style="text-indent: -10pt; margin-left: 20pt">
Total
</div>
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
$
</td>
<td nowrap="nowrap" align="right" valign="bottom">
170,736
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
$
</td>
<td nowrap="nowrap" align="right" valign="bottom">
238,201
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
</tr>
<tr valign="bottom" style="font-size: 1pt">
<td>
 
</td>
<td>
 
</td>
<td style="border-top: 3px double #000000">
 
</td>
<td style="border-top: 3px double #000000">
 
</td>
<td>
 
</td>
<td>
 
</td>
<td style="border-top: 3px double #000000">
 
</td>
<td style="border-top: 3px double #000000">
 
</td>
<td>
 
</td>
</tr>
</table>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">
<b><i><font style="font-family: Arial, Helvetica">Revenue
Accruals</font></i></b>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">
Refer to discussion of revenue accruals in Note 4 under
“Cost-Based Formula Rates with
<font style="white-space: nowrap">True-Up</font>
Mechanism.” Our Regulated Operating Subsidiaries do not
earn a return on the balance of the revenue accruals, but do
accrue interest carrying costs which are subject to rate
recovery along with the principal amount of the revenue accrual.
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">
<b><i><font style="font-family: Arial, Helvetica">ITCTransmission
ADIT Deferral</font></i></b>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">
The carrying amount of the ITCTransmission ADIT Deferral is the
remaining unamortized balance of the portion of
ITCTransmission’s purchase price in excess of the fair
value of net assets acquired approved for inclusion in future
rates by the FERC. ITCTransmission earns a return on the
remaining unamortized balance of the ITCTransmission ADIT
Deferral that is included in rate base. The original amount
recorded for this regulatory asset of $60.6 million is
being recognized in rates and amortized on a straight-line basis
over 20 years. ITCTransmission recorded amortization
expense of $3.0 million annually during 2010, 2009 and
2008, which is included in depreciation and amortization.
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">
<b><i><font style="font-family: Arial, Helvetica">METC ADIT
Deferrals</font></i></b>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">
The carrying amount of the METC ADIT Deferral is the remaining
unamortized balance of the portion of METC’s purchase price
in excess of the fair value of net assets acquired from
Consumers Energy approved for inclusion in future rates by the
FERC. The original amount recorded for the regulatory asset for
METC ADIT Deferrals of $42.5 million is recognized in rates
and amortized over 18 years beginning
January 1, 2007, which corresponds to the amortization
period established in the METC’s rate case settlement in
2007. METC earns a return on the remaining unamortized balance
of the regulatory asset for METC ADIT Deferrals that is included
in rate base. METC recorded amortization expense of
$2.4 million annually during 2010, 2009 and 2008,
respectively, which is included in depreciation and amortization.
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">
<b><i><font style="font-family: Arial, Helvetica">METC
Regulatory Deferrals</font></i></b>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">
METC has deferred, as a regulatory asset, depreciation and
related interest expense associated with new transmission assets
placed in service from January 1, 2001 through
December 31, 2005 that were included on METC’s balance
sheet at the time MTH acquired METC from Consumers Energy (the
“METC Regulatory Deferrals”). The original amount
recorded for the regulatory asset for METC Regulatory Deferrals
of $15.4 million is recognized in rates and amortized over
20 years beginning January 1, 2007, which corresponds
to the amortization period established in METC’s rate case
settlement in 2007. METC earns a return on the remaining
unamortized balance of the regulatory asset for METC Regulatory
Deferrals that is included in rate base. METC recorded
amortization expense of $0.8 million during 2010, 2009 and
2008, respectively, which is included in depreciation and
amortization.
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">
<b><i><font style="font-family: Arial, Helvetica">Income Taxes
Recoverable Related to AFUDC Equity</font></i></b>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">
Accounting standards for income taxes provide that a regulatory
asset be recorded if it is probable that a future increase in
taxes payable relating to the book depreciation of AFUDC equity
that has been capitalized to property, plant and equipment will
be recovered from customers through future rates. Under our
Regulated Operating Subsidiaries’ cost-based formula rates
with <font style="white-space: nowrap">true-up</font>
mechanisms, the future taxes payable relating to AFUDC equity
will be recovered from customers in future rates. The
<font style="white-space: nowrap">true-up</font>
mechanism allows our Regulated Operating Subsidiaries to collect
their actual net revenue requirement, which includes taxes
payable relating to depreciation of AFUDC equity. Because AFUDC
equity is a component of property, plant and equipment that is
included in rate base when the plant is placed in service, and
the related deferred tax liabilities are not a reduction to rate
base, we effectively earn a return on this regulatory asset.
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">
<b><i><font style="font-family: Arial, Helvetica">ITC Great
Plains
<font style="white-space: nowrap">Start-up</font> and
Development Regulatory Asset</font></i></b>
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">
The <font style="white-space: nowrap">start-up</font>
and development regulatory asset consists of certain costs
incurred by ITC Great Plains from inception through the
effective date of the ITC Great Plains’ cost-based formula
rate, including costs which had been incurred to develop and
acquire transmission assets in the SPP region. These costs
relate primarily to obtaining various state, SPP and FERC
approvals necessary for ITC Great Plains to own transmission
assets and build new facilities in the SPP region, efforts to
establish the ITC Great Plains’ cost-based formula rate,
the establishment of ITC Great Plains as a public utility in
Kansas and Oklahoma, as well as obtaining the necessary
approvals and authorizations for the state regulators in Kansas
and Oklahoma.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">
The startup and development regulatory asset accrues carrying
charges at a rate equivalent to ITC Great Plains’ weighted
average cost of capital, adjusted annually based on ITC Great
Plains’ actual weighted average cost of capital calculated
in ITC Great Plains’ formula rate template for that year.
The equity component of these carrying charges, totaling
$1.1 million as of December 31, 2010, is not recorded
for GAAP accounting and reporting as the equity return does not
meet the recognition criteria of incurred costs eligible for
deferral under GAAP. The carrying charges began to accrue in
March 2009 as authorized by the FERC Order and will continue
until such time that the regulatory asset is included in rate
base.
</div>
<div style="margin-top: 6pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">
Recovery of the
<font style="white-space: nowrap">start-up</font> and
development regulatory asset requires FERC authorization upon
ITC Great Plains making an additional filing under
Section 205 of the Federal Power Act to demonstrate that
the costs to be recovered are just and reasonable. Subsequent to
FERC authorization, ITC Great Plains
will include the unamortized balance of the
<font style="white-space: nowrap">start-up</font> and
development regulatory assets in its rate base and will begin
amortizing it over a ten-year period upon the in-service date of
the KETA Project, the Kansas V-Plan or when the total in-service
gross property, plant and equipment at ITC Great Plains exceeds
$100 million, whichever occurs first. The amortization
expense will be recovered through ITC Great Plains’
cost-based formula rate template beginning in the period in
which amortization begins.
</div>
<div style="margin-top: 12pt; font-size: 1pt"> 
</div>
<div align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">
<b><i><font style="font-family: Arial, Helvetica">KETA Project
Regulatory Asset</font></i></b>
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The KETA Project regulatory asset includes certain costs
incurred associated with regulatory activities in Kansas and
Oklahoma and with participants in SPP to obtain the necessary
approvals and authorization before proceeding further with
plans, as well as engineering studies, routing studies and
education and outreach to stakeholders on ITC Great Plains’
efforts to bring these projects to the SPP region, and other
costs incurred specific to the KETA Project prior to
construction. The KETA Project regulatory asset accrues carrying
charges at a rate equivalent to ITC Great Plains’ weighted
average cost of capital, adjusted annually based on ITC Great
Plains’ actual weighted average cost of capital calculated
in our formula rate template for that year. The equity component
of these carrying charges, totaling $0.2 million as of
December 31, 2010, are not recorded for GAAP accounting and
reporting as the equity return does not meet the recognition
criteria of a incurred costs eligible for deferral under GAAP.
The carrying charges began to accrue in March 2009 as authorized
by the FERC Order and will continue until such time that the
regulatory asset is included in rate base.
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Recovery of the KETA Project regulatory asset requires FERC
authorization upon ITC Great Plains making an additional filing
under Section 205 of the Federal Power Act to demonstrate
that the costs to be recovered are just and reasonable.
Subsequent to FERC authorization, ITC Great Plains will include
the unamortized balance of the KETA Project Regulatory Asset in
its rate base and begin amortizing it over a ten-year period
upon the in-service date of the KETA Project. The amortization
expense will be recovered through ITC Great Plains’
cost-based formula rate template beginning in that year.
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<b><i><font style="font-family: Arial, Helvetica">Pensions and
Postretirement</font></i></b>
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Accounting standards for defined benefit pension and other
postretirement plans require that amounts that otherwise would
have been charged and or credited to accumulated other
comprehensive income are recorded as a regulatory asset or
liability. As the unrecognized amounts recorded to this
regulatory asset are recognized, expenses will be recovered from
customers in future rates under our cost-based formula rates.
Our Regulated Operating Subsidiaries do not earn a return on the
balance of the Pension and Postretirement regulatory asset.
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<b><font style="font-family: Arial, Helvetica">Regulatory
Liabilities</font></b>
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The following table summarizes the regulatory liabilities
balances at December 31, 2010 and 2009:
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<b>(In thousands)</b>
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<b>2010</b>
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</td>
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<b>2009</b>
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Regulatory Liabilities:
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</td>
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</td>
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</td>
<td>
 
</td>
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</td>
<td nowrap="nowrap" align="right" valign="bottom">
 
</td>
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</td>
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Accrued asset removal costs
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$
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90,987
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</td>
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</td>
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$
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112,430
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</td>
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Revenue deferrals(a):
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</td>
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</td>
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</td>
<td nowrap="nowrap" align="right" valign="bottom">
 
</td>
<td nowrap="nowrap" align="left" valign="bottom">
 
</td>
<td>
 
</td>
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</td>
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</td>
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</td>
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Current (including accrued interest of $876 as of
December 31, 2010)
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17,658
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</td>
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</td>
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—
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Non-current (including accrued interest of $680 and $186 as of
December 31, 2010 and 2009, respectively)
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43,202
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</td>
<td>
 
</td>
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</td>
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10,238
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</td>
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</td>
<td>
 
</td>
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</td>
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</td>
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Total
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$
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151,847
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</td>
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$
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122,668
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</td>
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(a) </td>
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Refer to discussion of revenue deferrals in Note 4 under
“Cost-Based Formula Rates with
<font style="white-space: nowrap">True-Up</font>
Mechanism.” Our Regulated Operating Subsidiaries accrue
interest on the
<font style="white-space: nowrap">true-up</font>
amounts which will be refunded through rates along with the
principal amount of revenue deferrals in future periods.</td>
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<b><i><font style="font-family: Arial, Helvetica">Accrued Asset
Removal Costs</font></i></b>
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The carrying amount of the accrued asset removal costs
represents the accrued asset removal costs to remove the asset
at retirement. The portion of depreciation expense included in
our depreciation rates related to asset removal costs is added
to this regulatory liability and removal expenditures incurred
are charged to this regulatory liability. In addition, the
regulatory liability is also adjusted for timing differences
between when we recover legal asset retirement obligations in
our rates and when we would recognize these costs under the
standards set forth by the FASB. Our Regulated Operating
Subsidiaries include this item, excluding the cost component
related to the recognition of our asset retirement obligations
under the standards set forth by the FASB, within accumulated
depreciation for rate-making purposes, which is a reduction to
rate base. As a result of ITC Midwest’s depreciation
studies as discussed in Note 4 under “Depreciation
Studies,” we recorded a decrease in our regulatory
liability for accrued removal costs of $17.9 million during
2010.
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-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
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