1.0.0.3 false REGULATORY ASSETS AND LIABILITIES false 1 $ false false iso4217_USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 iso4217_USD_per_shares Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares 0 shares Standard http://www.xbrl.org/2003/instance shares 0 5 REGULATORY ASSETS AND LIABILITIES 3 us-gaap_DescriptionOfRegulatoryAssetsAndLiabilities us-gaap true na duration string No definition available. false false false false false false false false false 1 false false 0 0 <div> NOTE 6:  REGULATORY ASSETS AND LIABILITIES Allegheny’s regulated utility operations are subject to regulated industry specific accounting provisions. Regulatory assets represent probable future revenues associated with incurred costs that are expected to be recovered in the future from customers through the rate-making process. Regulatory liabilities represent probable future reductions in revenues associated with amounts that are to be credited or refunded to customers through the rate-making process or amounts collected for costs not yet incurred. Regulatory assets and regulatory liabilities reflected in the Consolidated Balance Sheets were as follows:   <table border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="86%"></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> </tr> <tr> <td valign="bottom" rowspan="2" nowrap="nowrap"> (In millions) </td> <td valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="5" align="center">December 31,</td> </tr> <tr> <td valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center">2009</td> <td valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center">2008</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> Regulatory assets, including current portion: </td> <td valign="bottom">  </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">  </td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> Income taxes (a)(b) </td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">234.9</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">231.3</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> Pension benefits and postretirement benefits other than pensions (a)(c) </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">396.5</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">390.4</td> </tr> <tr> <td valign="top"> Pennsylvania Competitive Transition Charge (“CTC”) reconciliation (d) </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">5.0</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">73.6</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> Unamortized loss on reacquired debt (a)(e) </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">26.8</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">31.1</td> </tr> <tr> <td valign="top"> Unrealized loss on fair value of financial transmission rights (f) </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">1.7</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">17.8</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> Deferred ENEC charges (f) </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">109.5</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">52.0</td> </tr> <tr> <td valign="top"> Transmission revenue requirement (i) </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">29.8</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">8.1</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> Other (g) </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">45.8</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">42.2</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> </tr> <tr> <td valign="top"> Subtotal </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">850.0</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">846.5</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> Regulatory liabilities, including current portion: </td> <td valign="bottom">  </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">  </td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> Net asset removal costs—Virginia (h) </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">—  </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">50.6</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> Net asset removal costs—other than Virginia </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">374.2</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">356.8</td> </tr> <tr> <td valign="top"> Income taxes </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">29.3</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">35.2</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> SO2 allowances </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">12.8</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">13.3</td> </tr> <tr> <td valign="top"> Virginia collections for costs not yet incurred </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">—  </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">28.3</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> Fort Martin Scrubber project-environmental control surcharge </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">40.1</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">29.1</td> </tr> <tr> <td valign="top"> Maryland rate stabilization and transition plan surcharge </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">30.1</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">61.7</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> Other </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">12.1</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">23.1</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> </tr> <tr> <td valign="top"> Subtotal </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">498.6</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">598.1</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> Net regulatory assets </td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">351.4</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">248.4</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> <td style="BORDER-TOP: #000000 3px double" valign="bottom">  </td> </tr> </table>   <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="4%" align="left">(a)</td> <td valign="top" align="left">Does not earn a return.</td> </tr> </table> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="4%" align="left">(b)</td> <td valign="top" align="left">Amount is being recovered over various periods associated with the remaining useful life of related regulated utility property, plant and equipment.</td> </tr> </table> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="4%" align="left">(c)</td> <td valign="top" align="left">See Note 11, “Pension Benefits and Postretirement Benefits Other Than Pensions.”</td> </tr> </table> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="4%" align="left">(d)</td> <td valign="top" align="left">Recorded amount includes an 11% return on amounts deferred that was earned through 2005. No additional return will be earned through the 2010 recovery period.</td> </tr> </table> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="4%" align="left">(e)</td> <td valign="top" align="left">Amount is being recovered over various periods through 2025, based upon the maturities of reacquired debt.</td> </tr> </table> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="4%" align="left">(f)</td> <td valign="top" align="left">Includes amounts that do not earn a return on amounts deferred with recovery periods up to two years.</td> </tr> </table> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="4%" align="left">(g)</td> <td valign="top" align="left">Includes amounts that do not earn a return on amounts deferred with various recovery periods through 2027.</td> </tr> </table> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="4%" align="left">(h)</td> <td valign="top" align="left">Net asset removal costs of $51.0 million are included in liabilities associated with assets held for sale at December 31, 2009 in the consolidated balance sheet.</td> </tr> </table> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="4%" align="left">(i)</td> <td valign="top" align="left">Amount earns interest at the approved FERC interest rate and will be recovered through 2011.</td> </tr> </table>   See Note 4, “Rates and Regulation,” for additional information regarding regulatory developments impacting regulatory assets and liabilities, Note 11, “Pension Benefits and Postretirement Benefits Other Than Pensions,” for a discussion of regulatory assets relating to pension and other postretirement benefits, and Note 13, “Fair Value Measurements, Derivative Instruments and Hedging Activities” for information relating to regulatory assets relating to unrealized gains and losses on FTRs. Other regulatory assets and liabilities reflected in the table above relate to the following: Income Taxes, Net In certain jurisdictions, deferred income tax expense is not permitted as a current cost in the determination of rates charged to customers. In certain of these jurisdictions a deferred income tax liability, or asset as appropriate, is recorded with an offsetting regulatory asset or liability. These deferred income taxes primarily relate to temporary differences involving regulated utility property, plant and equipment and the related provision for depreciation. In addition, deferred income tax assets are recorded with offsetting regulatory liabilities related to deferred investment tax credits. The income tax regulatory asset represents amounts that will be recovered from customers when the temporary differences are reversed and the taxes paid. The income tax regulatory liability represents amounts that will be returned to customers as the investment tax credits are amortized against taxes paid. Pension and Other Postretirement Benefits Allegheny recognizes the underfunded status of its defined benefit postretirement plans as a liability on its consolidated balance sheet and recognizes changes in the funded status in other comprehensive income. However, to the extent that the funded status relates to Allegheny’s rate-regulated subsidiaries and such amounts will be recovered through the rate-making process, the funded status and changes in funded status are recognized as a regulatory asset rather than as a charge to other comprehensive income. Pennsylvania Stranded Cost Recovery and CTC Reconciliation Pennsylvania’s Electricity Generation Customer Choice and Competition Act (the “Customer Choice Act”) gave all retail electricity customers in Pennsylvania the right to choose their electricity generation supplier beginning January 2, 2000. Under terms of a customer choice implementation agreement between the Pennsylvania PUC and West Penn, beginning in 1998 and through June 2008, West Penn was authorized to recover $670 million of Competitive Transition Charges (“CTC”) incurred as part of the transition to customer choice. West Penn’s customer bills included a CTC charge, and West Penn recognized revenue related to CTC charges through the end of the recovery period in June 2008. For 2008 and 2007, West Penn recorded pre-tax income of approximately $21 million and $52 million respectively, related to CTC. Any difference between CTC charges recognized and the amount collected from customers was recorded as a regulatory asset for future collection. In 2005, the Pennsylvania PUC authorized West Penn to securitize and collect $115 million previously deferred as the difference between authorized and billed stranded cost recovery revenues, with an 11% return on the amounts deferred. This difference represents a separate regulatory asset (“Pennsylvania CTC Reconciliation”). Collection of these amounts from customers is occurring over an extended transition period through 2010. Recovery of the Pennsylvania CTC Reconciliation regulatory asset began after the Pennsylvania stranded cost regulatory asset was fully recovered. The amount of under-recovery of CTC during the transition period, if any, will be determined at the end of the transition period in 2010. Expanded Net Energy Cost In May 2007, the West Virginia PSC issued a rate order that re-established an annual ENEC method of recovering net power supply costs, including fuel costs, purchased power costs, including purchased power costs associated with the Grant Town PURPA Generation Facility and other related expenses, net of related revenue and interest earnings on the Fort Martin Scrubber project escrow fund. Under the ENEC, actual costs and revenues are tracked for under and/or over recoveries, and revised ENEC rate filings are made on an annual basis. Any under and/or over recovery of costs, net of related revenues, is deferred, for subsequent recovery or refund, as a regulatory asset or regulatory liability, with the corresponding impact on the Consolidated Statements of Income reflected within “Deferred energy costs, net.” See Note 4, “Rates and Regulation” for additional information. Asset Removal Costs In certain jurisdictions, depreciation rates include a factor representing the estimated costs associated with removing an asset from service upon retirement. The accrual accumulates during the asset’s service life and is reduced when the actual cost of removal is incurred. The accumulated balance of such removal costs represents a regulatory liability. In other jurisdictions, retirement costs are collected in rates only after they are incurred, in which case the costs are recorded as a regulatory asset. See Note 19, “Asset Retirement Obligations (“ARO”), for a description of asset retirement obligations. Maryland Rate Stabilization and Transition Plan Surcharge From March 2007 through December 2008, Potomac Edison collected a rate stabilization surcharge from its Maryland residential customers. The amounts collected through the surcharge and interest, which is recorded as a regulatory liability, will be returned to the Maryland residential customers in the form of a credit from January 2009 through December 2010. The credit reduces the impact of the rate cap expiration on the Maryland residential customers. Transmission Revenue Requirement Under a formula rate mechanism approved by FERC, TrAIL Company and PATH, LLC make annual filings in order to recover incurred costs and an allowed return. An initial rate filing is made for each calendar year using estimated costs, which is used to determine the billings to customers. All prudently incurred allowable costs and return earned during each calendar year are eventually recovered on a dollar-for-dollar basis through a true-up mechanism. As such, TrAIL Company and PATH, LLC recognize revenue as they incur recoverable costs and earn the allowed return on a monthly basis. Any differences between revenues earned based on actual costs and the amounts billed based on estimated costs are included in a regulatory asset or liability and will be recovered or refunded, respectively, in subsequent periods. </div> NOTE 6:  REGULATORY ASSETS AND LIABILITIES Allegheny’s regulated utility operations are subject to regulated industry specific false false No definition available. No authoritative reference available. false false 1 1 false UnKnown UnKnown UnKnown false true