The following table summarizes changes in regulatory assets and liabilities since December 31, 2012:



	September 30, 2013						December 31, 2012
	UNS Energy			TEP			UNS Energy			TEP
	Millions of Dollars
Regulatory Assets – Current	$	53		$	36		$	52		$	34
Regulatory Assets – Noncurrent ⁽¹⁾	201			187			191			178
Regulatory Liabilities – Current ⁽²⁾	(57		)	(26		)	(44		)	(21		)
Regulatory Liabilities – Noncurrent ⁽³⁾	(298		)	(260		)	(279		)	(241		)
Total Net Regulatory Assets (Liabilities)	$	(101	)	$	(63	)	$	(80	)	$	(50	)


⁽¹⁾	Regulatory Assets – Noncurrent increased reflecting a newly created regulatory asset primarily for the investment tax credit basis adjustment. See Note 6. This regulatory asset does not earn a return and will be recovered through future rates. The increase is also related to the addition of deferred rate case costs that do not earn a return and will be recovered over a four year period.


⁽²⁾	Regulatory Liabilities – Current increased because purchased energy costs are over recovered following deferral of coal costs related to the San Juan mine fire, as discussed above. The regulatory asset related to these deferred costs does not earn a return and will be recovered at the time of the final insurance settlement.


⁽³⁾	Regulatory Liabilities – Noncurrent increased due to the collection of amounts in rates for future asset removal costs that have not yet been expended.