Regulatory Assets and Liabilities

12 Months Ended

Dec. 31, 2011

Regulatory Assets and Liabilities [Abstract]

Regulatory Assets and Liabilities

4. Regulatory Assets and Liabilities

Our regulatory asset and liability balances are recoverable or reimbursable over various periods. Below are the details of our regulatory assets and liabilities at December 31:

		$0000.0		$0000.0
	2011		2010
	(In millions)
Current regulatory assets
Difference between gas retained and gas consumed in operations	$	6	$	5
Other		2		2
Total current regulatory assets		8		7
Non-current regulatory assets
Taxes on capitalized funds used during construction		21		22
Unamortized loss on reacquired debt		18		21
Postretirement benefits		8		6
Other		9		9
Total non-current regulatory assets (1)		56		58
Total regulatory assets	$	64	$	65
Current regulatory liabilities
Property and plant depreciation	$	1	$	1
Difference between gas retained and gas consumed in operations		12		5
Other		3		1
Total current regulatory liabilities		16		7
Non-current regulatory liabilities
Property and plant depreciation		25		24
Postretirement benefits		8		17
Other		2		2
Total non-current regulatory liabilities (1)		35		43
Total regulatory liabilities	$	51	$	50

(1) Included in other long-term assets and liabilities on our balance sheets.

The significant regulatory assets and liabilities include:

Difference Between Gas Retained and Gas Consumed in Operations. These amounts reflect the value of the volumetric difference between the gas retained and consumed in our operations. These amounts are not included in the rate base, but given our tariffs, are expected to be recovered from our customers or returned to our customers in subsequent fuel filing periods.

Taxes on Capitalized Funds Used During Construction. Represents the regulatory asset balance established to offset the deferred tax for the equity component of AFUDC. Taxes on capitalized funds used during construction and the offsetting deferred income taxes are included in the rate base and are recovered over the depreciable lives of the long-lived asset to which they relate.

Unamortized Loss on Reacquired Debt. Amount represents the deferred and unamortized portion of losses on reacquired debt which are recovered through the cost of service over the life of the new debt issue.

Postretirement Benefits. Represents differences in postretirement benefit costs expensed and the amounts previously recovered in rates. Prior to our 2011 rate case settlement, these balances also included unrecognized gains and losses or changes in actuarial assumptions related to our postretirement benefit plan. As part of our rate case settlement, we no longer include these costs in our rates and during the third quarter of 2011, we reclassified $6 million (net of income taxes of $4 million) to accumulated other comprehensive income.

Property and Plant Depreciation. Represents the deferral of customer-funded amounts for costs of future asset retirements and costs previously collected in our rates for the depreciation of certain assets in excess of normal depreciation rates.