XML 34 R20.htm IDEA: XBRL DOCUMENT v3.3.1.900
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
 12 Months Ended
Dec. 31, 2015
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  
Schedule of regulatory assets and liabilities

Regulatory assets and liabilities are as follows (thousands):

 

 

 

 

 

 

 

 

 

    

2015

    

2014

 

Regulatory assets

 

 

 

 

 

 

 

Deferred income tax expense (1)

 

$
28,629

 

$
17,230

 

Deferred prepaid lease expense- Craig 3 Lease (2)

 

 
16,183

 

 
22,656

 

Deferred prepaid lease expense- Springerville 3 Lease (3)

 

 
92,878

 

 
95,168

 

Goodwill – J.M. Shafer (4)

 

 
60,541

 

 
63,390

 

Goodwill – Colowyo Coal (5)

 

 
41,327

 

 
43,526

 

Deferred debt prepayment transaction costs (6)

 

 
175,444

 

 
184,073

 

Other

 

 
79

 

 

 —

 

 

 

 
415,081

 

 
426,043

 

Regulatory liabilities

 

 

 

 

 

 

 

Deferred revenues (7)

 

 
45,000

 

 
45,000

 

Net regulatory asset

 

$
370,081

 

$
381,043

 

(1)

A regulatory asset or liability associated with deferred income taxes generally represents the future increase or decrease in income taxes payable that will be received or settled through future rate revenues.

(2)

Deferral of loss on acquisition related to the Craig Generating Station (“Craig Station”) Unit 3 prepaid lease expense upon acquisitions of equity interests in 2002 and 2006. The regulatory asset for the deferred prepaid lease expense is being amortized to depreciation and amortization expense in the amount of $6.5 million annually through the remaining original life of the lease ending in 2018 and recovered from our Members in rates.

(3)

Deferral of loss on acquisition related to the Springerville Generating Station Unit 3 (“Springerville Unit 3”) prepaid lease expense upon acquiring a controlling interest in the Springerville Unit 3 Partnership LP (“Springerville Partnership”) in 2009. The regulatory asset for the deferred prepaid lease expense is being amortized to depreciation and amortization expense in the amount of $2.3 million annually through the 47-year period ending in 2056 and recovered from our Members in rates.

(4)

Represents goodwill related to our acquisition of Thermo Cogeneration Partnership, LP (“TCP”) in December 2011.  Goodwill is being amortized to depreciation and amortization expense in the amount of $2.8 million annually through the 25-year period ending in 2036 and recovered from our Members in rates.

(5)

Represents goodwill related to our acquisition of Colowyo Coal Company LP (“Colowyo Coal”) in December 2011. Goodwill is being amortized to depreciation and amortization expense through the 44-year period ending in 2056 and recovered from our Members in rates.

(6)

Represents transaction costs that we incurred related to the prepayment of our long-term debt in 2014. These costs are being amortized to depreciation and amortization expense in the amount of $8.6 million annually over the 21.4-year average life of the new debt issued and recovered from our Members in rates.

(7)

Represents deferral of the recognition of $10 million of non-member electric sales revenue received in 2008 and $35 million of non-member electric sales revenue in 2011. These deferred non-member electric sales revenues will be refunded to Members through reduced rates when recognized in non-member electric sales revenue in future periods.
Schedule of investments in other associations

Investments in other associations are as follows (thousands):

 

 

 

 

 

 

 

 

 

    

2015

    

2014

 

Basin Electric Power Cooperative

 

$
84,875

 

$
80,250

 

National Rural Utilities Cooperative Finance Corporation

 

 
26,808

 

 
26,695

 

CoBank, ACB

 

 
6,212

 

 
5,518

 

Western Fuels Association, Inc.

 

 
2,275

 

 
2,338

 

Other

 

 
3,516

 

 
3,175

 

Investments in other associations

 

$
123,686

 

$
117,976

 

 

Schedule of investments in and advances to coal mines

Investments in and advances to coal mines are as follows (thousands):

 

 

 

 

 

 

 

 

 

    

2015

    

2014

 

Investment in Trapper Mine

 

$
14,072

 

$
13,650

 

Advances to Dry Fork Mine

 

 
2,149

 

 
1,366

 

Investments in and advances to coal mines

 

$
16,221

 

$
15,016

 

 

Schedule of restricted cash and investments

Restricted cash and investments are as follows (thousands):

 

 

 

 

 

 

 

 

 

    

2015

    

2014

 

Investments in securities pledged as collateral

 

$
8,671

 

$
9,192

 

Funds restricted by contract

 

 
859

 

 
592

 

Restricted cash and investments - current

 

 
9,530

 

 
9,784

 

 

 

 

 

 

 

 

 

BNSF settlement

 

 

 —

 

 
29,381

 

Funds restricted by contract

 

 
1,000

 

 
1,000

 

Investments in securities pledged as collateral

 

 

 —

 

 
8,995

 

Restricted cash and investments - noncurrent

 

 
1,000

 

 
39,376

 

Total restricted cash and investments

 

$
10,530

 

$
49,160

 

 

Schedule of other deferred charges

Other deferred charges are as follows (thousands):

 

 

 

 

 

 

 

 

 

    

2015

    

2014

 

Preliminary surveys and investigations

 

$
107,146

 

$
131,693

 

Advances to operating agents of jointly owned facilities

 

 
11,537

 

 
20,567

 

Other

 

 
3,852

 

 
3,940

 

Total other deferred charges

 

$
122,535

 

$
156,200

 

 

Schedule of change in aggregate carrying amount of asset retirement obligations

Aggregate carrying amounts of asset retirement obligations are as follows (thousands):

 

 

 

 

 

 

 

 

 

    

2015

    

2014

 

Asset retirement obligation at beginning of year

 

$
53,754

 

$
52,585

 

Liabilities incurred

 

 
1,802

 

 
1,366

 

Liabilities settled

 

 
(3,028)

 

 
(5,729)

 

Accretion expense

 

 
3,324

 

 
2,250

 

Change in cash flow estimate

 

 
(637)

 

 
3,282

 

Asset retirement obligation at end of year

 

$
55,215

 

$
53,754