REGULATORY MATTERS (Tables)

12 Months Ended

Dec. 31, 2012

REGULATORY MATTERS

Components of regulatory assets and liabilities

The following table sets forth the components of our regulatory assets and regulatory liabilities on our consolidated balance sheet (in thousands).

	December 31,
	2012		2011
Regulatory Assets:
Under recovered purchased gas costs — gas segment — current	$	1,689	$	211
Under recovered electric fuel and purchased power costs — current		1,196		7,513
Other		3,492		4,115
Regulatory assets, current(1)		6,377		11,839
Pension and other postretirement benefits(2)		136,480		121,058
Income taxes		48,759		49,631
Deferred construction accounting costs(3)		16,277		16,717
Unamortized loss on reacquired debt		11,078		10,138
Unsettled derivative losses — electric segment		6,557		7,839
System reliability — vegetation management		8,340		5,908
Storm costs(4)		4,223		4,990
Asset retirement obligation		4,430		3,571
Customer programs		3,916		2,968
Unamortized loss on interest rate derivative		989		1,147
Other		584		1,338
Under recovered purchased gas costs — gas segment		—		1,281
Deferred operating and maintenance expense		2,011		990
Under recovered electric fuel and purchased power costs		314		231
Regulatory assets, long-term		243,958		227,807
TOTAL REGULATORY ASSETS	$	250,335	$	239,646
Regulatory Liabilities
SWPA payment for Ozark Beach lost generation	$	2,774	$	2,833
Other		315		317
Regulatory liabilities, current(1)		3,089		3,150
Costs of removal		83,368		73,562
SWPA payment for Ozark Beach lost generation		19,467		22,242
Income taxes		11,972		12,337
Deferred construction accounting costs — fuel		8,011		8,156
Unamortized gain on interest rate derivative		3,371		3,541
Pension and other postretirement benefits(5)		2,007		2,939
Over recovered electric fuel and purchased power costs		5,826		2,513
Other		247		—
Regulatory liabilities, long-term		134,269		125,290
TOTAL REGULATORY LIABILITIES	$	137,358	$	128,440

(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, 2012 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, 2012	Deferred Carrying Charges		Deferred O&M		Depreciation		Total
	Iatan 1	$	2,678		1,339		1,622	$	5,639
	Iatan 2	$	3,821		4,155		2,685	$	10,661
	Plum Point	$	64		195		158	$	417
	Total							$	16,717
	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

(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, 2012, regulatory liabilities and corresponding expenses have been reduced by approximately $0.9 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 — Water	May 21, 2012	$	450,000		25.5	%		November 23, 2012
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