REGULATORY MATTERS (Tables)

12 Months Ended

Dec. 31, 2011

REGULATORY MATTERS

Components of regulatory assets and liabilities

	December 31,
	2011		2010
Regulatory Assets:
Under recovered purchased gas costs — gas segment — current	$	211	$	—
Under recovered electric fuel and purchased power costs — current		7,513		4,974
Regulatory assets, current(1)		7,724		4,974
Pension and other postretirement benefits(2)		121,058		92,192
Income taxes		49,631		50,188
Deferred construction accounting costs(3)		17,095		10,521
Unamortized loss on reacquired debt		11,610		13,099
Unsettled derivative losses — electric segment		7,839		3,166
System reliability — vegetation management		6,569		3,338
Storm costs(4)		5,303		7,733
Asset retirement obligation		3,571		3,412
Customer programs		3,408		2,119
Unamortized loss on interest rate derivative		1,462		1,776
Other		1,420		473
Under recovered purchased gas costs — gas segment		1,281		439
Deferred operating and maintenance expense		952		—
Asbury five-year maintenance		492		948
Under recovered electric fuel and purchased power costs		231		—
Regulatory assets, long-term		231,922		189,404
TOTAL REGULATORY ASSETS	$	239,646	$	194,378
Regulatory Liabilities
Over recovered purchased gas costs — gas segment — current	$	—	$	1,243
Regulatory liabilities, current(1)		—		1,243
Costs of removal		73,562		62,756
SWPA payment for Ozark Beach lost generation		25,074		—
Income taxes		12,337		12,715
Deferred construction accounting costs — fuel		8,304		3,126
Unamortized gain on interest rate derivative		3,711		3,881
Pension and other postretirement benefits(5)		2,939		4,604
Over recovered electric fuel and purchased power costs		2,513		409
Other		—		88
Regulatory liabilities, long-term		128,440		87,579
TOTAL REGULATORY LIABILITIES	$	128,440	$	88,822

(1)

Reflects over and under recovered costs expected to be returned or recovered as applicable, within the next 12 months in Missouri rates.

(2)

Primarily reflects regulatory assets resulting from the unfunded portion of our pension and OPEB liabilities and regulatory accounting for EDG acquisition costs. Approximately $0.5 million in pension and other postretirement benefit costs have been recognized since January 1, 2011 to reflect the amortization of the regulatory assets that were recorded at the time of the EDG acquisition of the Aquila, Inc. gas properties.

(3)	Balances as of December 31, 2011	Deferred Carrying Charges		Deferred O&M		Depreciation		Total
	Iatan 1	$	2,728		1,363		1,652	$	5,743
	Iatan 2	$	3,891		4,271		2,728	$	10,890
	Plum Point	$	65		239		158	$	462
	Total							$	17,095
	Balances as of December 31, 2011	Deferred Carrying Charges		Deferred O&M		Depreciation		Total
	Iatan 1	$	2,779		1,388		1,682	$	5,849
	Iatan 2	$	1,770		1,643		1,111	$	4,524
	Plum Point	$	33		70		45	$	148
	Total							$	10,521

(4)

Reflects ice storm costs incurred in 2007 and costs incurred as a result of the May 2011 tornado.

(5)

Includes the effect of costs incurred that are more or less than those allowed in rates for the Missouri (EDE and EDG) and Kansas (EDE) portion of pension and other postretirement benefit costs. Since January 1, 2011, regulatory liabilities and corresponding expenses have been reduced by approximately $0.5 million as a result of ratemaking treatment.

Schedule of electric and gas rate increases

Jurisdiction	Date Requested	Annual Increase Granted		Percent Increase Granted			Date Effective
Missouri — Electric	September 28, 2010	$	18,700,000		4.70	%		June 15, 2011
Missouri — Electric	October 29, 2009	$	46,800,000		13.40	%		September 10, 2010
Kansas — Electric	June 17, 2011	$	1,250,000		5.20	%		January 1, 2012
Kansas — Electric	November 4, 2009	$	2,800,000		12.40	%		July 1, 2010
Oklahoma — Electric	June 30, 2011	$	240,722		1.66	%		January 4, 2012
Oklahoma — Electric	January 28, 2011	$	1,063,100		9.32	%		March 1, 2011
Oklahoma — Electric	March 25, 2010	$	1,456,979		15.70	%		September 1, 2010
Arkansas — Electric	August 19, 2010	$	2,104,321		19.00	%		April 13, 2011
Missouri — Gas	June 5, 2009	$	2,600,000		4.37	%		April 1, 2010