Regulatory Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2017

Regulatory Assets and Liabilities Disclosure [Abstract]

Regulatory assets and liabilities include the following:



	March 31, 2017		December 31, 2016
(millions)
Dominion
Regulatory assets:
Deferred rate adjustment clause costs⁽¹⁾	$	75	$	63
Deferred nuclear refueling outage costs⁽²⁾	53		71
Other	103		110
Regulatory assets-current⁽³⁾	231		244
Unrecognized pension and other postretirement benefit costs⁽⁴⁾	1,328		1,401
Deferred rate adjustment clause costs⁽¹⁾	328		329
PJM transmission rates⁽⁵⁾	200		192
Derivatives⁽⁶⁾	172		174
Income taxes recoverable through future rates⁽⁷⁾	138		123
Utility reform legislation⁽⁸⁾	110		99
Other	163		155
Regulatory assets-noncurrent	2,439		2,473
Total regulatory assets	$	2,670	$	2,717
Regulatory liabilities:
Deferred cost of fuel used in electric generation⁽⁹⁾	$	33	$	61
PIPP⁽¹⁰⁾	23		28
Other	105		74
Regulatory liabilities-current⁽¹¹⁾	161		163



Provision for future cost of removal and AROs⁽¹²⁾	1,450		1,427
Nuclear decommissioning trust⁽¹³⁾	953		902
Derivatives⁽⁶⁾	70		69
Other	272		224
Regulatory liabilities-noncurrent	2,745		2,622
Total regulatory liabilities	$	2,906	$	2,785
Virginia Power
Regulatory assets:
Deferred rate adjustment clause costs⁽¹⁾	$	71	$	51
Deferred nuclear refueling outage costs⁽²⁾	53		71
Other	66		57
Regulatory assets-current⁽³⁾	190		179
Deferred rate adjustment clause costs⁽¹⁾	232		246
PJM transmission rates⁽⁵⁾	200		192
Derivatives⁽⁶⁾	137		133
Income taxes recoverable through future rates⁽⁷⁾	81		76
Other	126		123
Regulatory assets-noncurrent	776		770
Total regulatory assets	$	966	$	949
Regulatory liabilities:
Deferred cost of fuel used in electric generation⁽⁹⁾	$	33	$	61
Other	49		54
Regulatory liabilities-current⁽¹¹⁾	82		115
Provision for future cost of removal⁽¹²⁾	965		946
Nuclear decommissioning trust⁽¹³⁾	953		902
Derivatives⁽⁶⁾	70		69
Other	76		45
Regulatory liabilities-noncurrent	2,064		1,962
Total regulatory liabilities	$	2,146	$	2,077
Dominion Gas
Regulatory assets:
Deferred rate adjustment clause costs⁽¹⁾	$	4	$	12
Unrecovered gas costs⁽¹⁴⁾	—		12
Other	3		2
Regulatory assets-current⁽³⁾	7		26
Unrecognized pension and other postretirement benefit costs⁽⁴⁾	305		358
Utility reform legislation⁽⁸⁾	110		99
Deferred rate adjustment clause costs⁽¹⁾	89		79
Income taxes recoverable through future rates⁽⁷⁾	25		23
Other	21		18
Regulatory assets-noncurrent⁽¹⁵⁾	550		577
Total regulatory assets	$	557	$	603
Regulatory liabilities:
PIPP⁽¹⁰⁾	$	23	$	28
Other	23		7
Regulatory liabilities-current⁽¹¹⁾	46		35


(1)	Reflects deferrals under the electric transmission FERC formula rate and the deferral of costs associated with certain current and prospective rider projects for Virginia Power. Reflects deferrals of costs associated with certain current and prospective rider projects for Dominion Gas. See Note 12 for more information.


(2)	Legislation enacted in Virginia in April 2014 requires Virginia Power to defer operation and maintenance costs incurred in connection with the refueling of any nuclear-powered generating plant. These deferred costs will be amortized over the refueling cycle, not to exceed 18 months.


(3)	Current regulatory assets are presented in other current assets in Dominion's, Virginia Power's and Dominion Gas' Consolidated Balance Sheets.


(4)	Represents unrecognized pension and other postretirement employee benefit costs expected to be recovered through future rates generally over the expected remaining service period of plan participants by certain of Dominion's and Dominion Gas' rate-regulated subsidiaries.


(5)	Reflects amounts related to PJM transmission cost allocation matter. See Note 12 for more information.


(6)	For jurisdictions subject to cost-based rate regulation, changes in the fair value of derivative instruments result in the recognition of regulatory assets or regulatory liabilities as they are expected to be recovered from or refunded to customers.


(7)	Amounts to be recovered through future rates to pay income taxes that become payable when rate revenue is provided to recover AFUDC-equity and depreciation of property, plant and equipment for which deferred income taxes were not recognized for ratemaking purposes, including amounts attributable to tax rate changes.

(8)

Ohio legislation under House Bill 95, which became effective in September 2011. This law updates natural gas legislation by enabling gas companies to include more up-to-date cost levels when filing rate cases. It also allows gas companies to seek approval of capital expenditure plans under which gas companies can recognize carrying costs on associated capital investments placed in service and can defer the carrying costs plus depreciation and property tax expenses for recovery from ratepayers in the future.


(9)	Reflects deferred fuel expenses for the Virginia and North Carolina jurisdictions of Dominion's and Virginia Power's generation operations.


(10)	Under PIPP, eligible customers can make reduced payments based on their ability to pay. The difference between the customer's total bill and the PIPP plan amount is deferred and collected or returned annually under the PIPP rate adjustment clause according to East Ohio tariff provisions.


(11)	Current regulatory liabilities are presented in other current liabilities in Dominion's, Virginia Power's and Dominion Gas' Consolidated Balance Sheets.


(12)	Rates charged to customers by the Companies' regulated businesses include a provision for the cost of future activities to remove assets that are expected to be incurred at the time of retirement.


(13)	Primarily reflects a regulatory liability representing amounts collected from Virginia jurisdictional customers and placed in external trusts (including income, losses and changes in fair value thereon) for the future decommissioning of Virginia Power's utility nuclear generation stations, in excess of the related AROs.


(14)	Reflects unrecovered gas costs at regulated gas operations, which are recovered through filings with the applicable regulatory authority.


(15)	Noncurrent regulatory assets are presented in other deferred charges and other assets in Dominion Gas' Consolidated Balance Sheets.


(16)	Noncurrent regulatory liabilities are presented in other deferred credits and other liabilities in Dominion Gas' Consolidated Balance Sheets.

Schedule of Regulatory Liabilities

Regulatory assets and liabilities include the following:



	March 31, 2017		December 31, 2016
(millions)
Dominion
Regulatory assets:
Deferred rate adjustment clause costs⁽¹⁾	$	75	$	63
Deferred nuclear refueling outage costs⁽²⁾	53		71
Other	103		110
Regulatory assets-current⁽³⁾	231		244
Unrecognized pension and other postretirement benefit costs⁽⁴⁾	1,328		1,401
Deferred rate adjustment clause costs⁽¹⁾	328		329
PJM transmission rates⁽⁵⁾	200		192
Derivatives⁽⁶⁾	172		174
Income taxes recoverable through future rates⁽⁷⁾	138		123
Utility reform legislation⁽⁸⁾	110		99
Other	163		155
Regulatory assets-noncurrent	2,439		2,473
Total regulatory assets	$	2,670	$	2,717
Regulatory liabilities:
Deferred cost of fuel used in electric generation⁽⁹⁾	$	33	$	61
PIPP⁽¹⁰⁾	23		28
Other	105		74
Regulatory liabilities-current⁽¹¹⁾	161		163



Provision for future cost of removal and AROs⁽¹²⁾	1,450		1,427
Nuclear decommissioning trust⁽¹³⁾	953		902
Derivatives⁽⁶⁾	70		69
Other	272		224
Regulatory liabilities-noncurrent	2,745		2,622
Total regulatory liabilities	$	2,906	$	2,785
Virginia Power
Regulatory assets:
Deferred rate adjustment clause costs⁽¹⁾	$	71	$	51
Deferred nuclear refueling outage costs⁽²⁾	53		71
Other	66		57
Regulatory assets-current⁽³⁾	190		179
Deferred rate adjustment clause costs⁽¹⁾	232		246
PJM transmission rates⁽⁵⁾	200		192
Derivatives⁽⁶⁾	137		133
Income taxes recoverable through future rates⁽⁷⁾	81		76
Other	126		123
Regulatory assets-noncurrent	776		770
Total regulatory assets	$	966	$	949
Regulatory liabilities:
Deferred cost of fuel used in electric generation⁽⁹⁾	$	33	$	61
Other	49		54
Regulatory liabilities-current⁽¹¹⁾	82		115
Provision for future cost of removal⁽¹²⁾	965		946
Nuclear decommissioning trust⁽¹³⁾	953		902
Derivatives⁽⁶⁾	70		69
Other	76		45
Regulatory liabilities-noncurrent	2,064		1,962
Total regulatory liabilities	$	2,146	$	2,077
Dominion Gas
Regulatory assets:
Deferred rate adjustment clause costs⁽¹⁾	$	4	$	12
Unrecovered gas costs⁽¹⁴⁾	—		12
Other	3		2
Regulatory assets-current⁽³⁾	7		26
Unrecognized pension and other postretirement benefit costs⁽⁴⁾	305		358
Utility reform legislation⁽⁸⁾	110		99
Deferred rate adjustment clause costs⁽¹⁾	89		79
Income taxes recoverable through future rates⁽⁷⁾	25		23
Other	21		18
Regulatory assets-noncurrent⁽¹⁵⁾	550		577
Total regulatory assets	$	557	$	603
Regulatory liabilities:
PIPP⁽¹⁰⁾	$	23	$	28
Other	23		7
Regulatory liabilities-current⁽¹¹⁾	46		35


(1)	Reflects deferrals under the electric transmission FERC formula rate and the deferral of costs associated with certain current and prospective rider projects for Virginia Power. Reflects deferrals of costs associated with certain current and prospective rider projects for Dominion Gas. See Note 12 for more information.


(2)	Legislation enacted in Virginia in April 2014 requires Virginia Power to defer operation and maintenance costs incurred in connection with the refueling of any nuclear-powered generating plant. These deferred costs will be amortized over the refueling cycle, not to exceed 18 months.


(3)	Current regulatory assets are presented in other current assets in Dominion's, Virginia Power's and Dominion Gas' Consolidated Balance Sheets.


(4)	Represents unrecognized pension and other postretirement employee benefit costs expected to be recovered through future rates generally over the expected remaining service period of plan participants by certain of Dominion's and Dominion Gas' rate-regulated subsidiaries.


(5)	Reflects amounts related to PJM transmission cost allocation matter. See Note 12 for more information.


(6)	For jurisdictions subject to cost-based rate regulation, changes in the fair value of derivative instruments result in the recognition of regulatory assets or regulatory liabilities as they are expected to be recovered from or refunded to customers.


(7)	Amounts to be recovered through future rates to pay income taxes that become payable when rate revenue is provided to recover AFUDC-equity and depreciation of property, plant and equipment for which deferred income taxes were not recognized for ratemaking purposes, including amounts attributable to tax rate changes.

(8)


(9)	Reflects deferred fuel expenses for the Virginia and North Carolina jurisdictions of Dominion's and Virginia Power's generation operations.


(10)	Under PIPP, eligible customers can make reduced payments based on their ability to pay. The difference between the customer's total bill and the PIPP plan amount is deferred and collected or returned annually under the PIPP rate adjustment clause according to East Ohio tariff provisions.


(11)	Current regulatory liabilities are presented in other current liabilities in Dominion's, Virginia Power's and Dominion Gas' Consolidated Balance Sheets.


(12)	Rates charged to customers by the Companies' regulated businesses include a provision for the cost of future activities to remove assets that are expected to be incurred at the time of retirement.


(13)	Primarily reflects a regulatory liability representing amounts collected from Virginia jurisdictional customers and placed in external trusts (including income, losses and changes in fair value thereon) for the future decommissioning of Virginia Power's utility nuclear generation stations, in excess of the related AROs.


(14)	Reflects unrecovered gas costs at regulated gas operations, which are recovered through filings with the applicable regulatory authority.


(15)	Noncurrent regulatory assets are presented in other deferred charges and other assets in Dominion Gas' Consolidated Balance Sheets.


(16)	Noncurrent regulatory liabilities are presented in other deferred credits and other liabilities in Dominion Gas' Consolidated Balance Sheets.

Provision for future cost of removal and AROs⁽¹²⁾

Regulatory liabilities-noncurrent⁽¹⁶⁾

Total regulatory liabilities