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Regulatory Assets and Liabilities | 12 Months Ended
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Dec. 31, 2016
Regulated Operations [Abstract] |
REGULATORY ASSETS AND LIABILITIES | REGULATORY ASSETS AND LIABILITIES The Company has recorded regulatory assets and liabilities (in millions) that it expects to pass through to its customers in accordance with, and subject to, regulatory provisions as follows:
December 31, | 2016 |  | 2015 |  | Recovery/Refund Period
REGULATORY ASSETS |  |  |
Current regulatory assets: |  |  |  |  |
Brazil tariff recoveries: (1) |  |  |  |  |
Energy purchases/sales | $ | 319 |  |  | $ | 349 |  |  | Annually as part of the tariff adjustment
Transmission costs, regulatory fees and other | 139 |  |  | 212 |  |  | Annually as part of the tariff adjustment
El Salvador tariff recoveries (1) | 54 |  |  | 43 |  |  | Quarterly as part of the tariff adjustment
Other | 34 |  |  | 23 |  |  | Various
Total current regulatory assets | 546 |  |  | 627 |  |  |
Noncurrent regulatory assets: |  |  |  |  |
IPL and DPL defined benefit pension obligations | 316 |  |  | 227 |  |  | Various
DPL and IPL income taxes recoverable from customers | 87 |  |  | 36 |  |  | Various
Brazil tariff recoveries: (1) |  |  |  |  |
Energy purchases/sales | 63 |  |  | 132 |  |  | Annually as part of the tariff adjustment
Transmission costs, regulatory fees and other | 18 |  |  | 124 |  |  | Annually as part of the tariff adjustment
IPL deferred Midwest ISO costs (1) | 114 |  |  | 129 |  |  | 10 years
Other | 143 |  |  | 239 |  |  | Various
Total noncurrent regulatory assets | 741 |  |  | 887 |  |  |
TOTAL REGULATORY ASSETS | $ | 1,287 |  |  | $ | 1,514 |  |  |
REGULATORY LIABILITIES |  |  |  |  |
Current regulatory liabilities: |  |  |  |  |
Brazil efficiency program costs | $ | 36 |  |  | $ | 9 |  |  | Annually as part of the tariff adjustment
Brazil tariff refunds: |  |  |  |  |
Energy purchases/sales | 211 |  |  | 105 |  |  | Annually as part of the tariff adjustment
Transmission costs, regulatory fees and other | 249 |  |  | 235 |  |  | Annually as part of the tariff adjustment
Other | 42 |  |  | 59 |  |  | Various
Total current regulatory liabilities | 538 |  |  | 408 |  |  |
Noncurrent regulatory liabilities: |  |  |  |  |
IPL and DPL asset retirement obligations | 795 |  |  | 759 |  |  | Over life of assets
Brazil special obligations | 362 |  |  | 313 |  |  | To be determined
Brazil efficiency program costs | 24 |  |  | 14 |  |  | Annually as part of the tariff adjustment
Brazil tariff refunds: |  |  |  |  |
Energy purchases/sales | 7 |  |  | 30 |  |  | Annually as part of the tariff adjustment
Transmission costs, regulatory fees and other | 170 |  |  | 86 |  |  | Annually as part of the tariff adjustment
Other | 5 |  |  | 7 |  |  | Various
Total noncurrent regulatory liabilities | 1,363 |  |  | 1,209 |  |  |
TOTAL REGULATORY LIABILITIES | $ | 1,901 |  |  | $ | 1,617 |  |  |
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(1) | Past expenditures on which the Company does not earn a rate of return.
Our regulatory assets primarily consist of costs that are generally non-controllable, such as purchased electricity, energy transmission, the difference between actual fuel costs and the fuel costs recovered in the tariffs, and other sector costs. These costs are recoverable or refundable as defined by the laws and regulations in our various markets. Our regulatory assets also include defined pension and postretirement benefit obligations equal to the previously unrecognized actuarial gains and losses and prior services costs that are expected to be recovered through future rates. Other current and noncurrent regulatory assets primarily consist of:
• | Unamortized carrying charges, certain environmental costs, and demand charges at IPL and DPL.
• | Unamortized premiums reacquired or redeemed on long term debt at IPL and DPL, which are amortized over the lives of the original issuances.
• | Unrecovered fuel and purchased power costs at IPL and DPL.
Other current regulatory assets that did not earn a rate of return were $34 million and $8 million, as of December 31, 2016 and 2015, respectively. Other noncurrent regulatory assets that did not earn a rate of return were $138 million and $237 million, as of December 31, 2016 and 2015, respectively. Our regulatory liabilities primarily consist of obligations for removal costs which do not have an associated legal retirement obligation, as well as obligations established by ANEEL in Brazil associated with electric utility concessions and represent amounts received from customers or donations not subject to return. These donations are allocated to support energy network expansion and to improve utility operations to meet customers' needs. The term of the obligation is established by ANEEL and settlement will occur when the electric utility concessions end. Other current and noncurrent regulatory liabilities primarily consist of amounts related to rider over collection at DPL and liabilities owed to electricity generators due to variance in energy prices during rationing periods known as "Free Energy" at Eletropaulo. Our Brazilian subsidiaries are authorized to refund this cost associated with monthly energy price variances between the wholesale energy market prices owed to the power generation plants producing Free Energy and the capped price reimbursed by the local distribution companies which are passed through to the final customers through energy tariffs. In the accompanying Consolidated Balance Sheets the current regulatory assets and liabilities are recorded in Other current assets and Accrued and other liabilities, respectively, and the noncurrent regulatory assets and liabilities are recorded in Other noncurrent assets and Other noncurrent liabilities, respectively. The following table summarizes regulatory assets and liabilities by reportable segment in millions as of the periods indicated:
| December 31, 2016 |  | December 31, 2015
| Regulatory Assets |  | Regulatory Liabilities |  | Regulatory Assets |  | Regulatory Liabilities
Brazil SBU | $ | 544 |  |  | $ | 1,059 |  |  | $ | 821 |  |  | $ | 798 |
US SBU | 689 |  |  | 842 |  |  | 650 |  |  | 819 |
MCAC SBU | 54 |  |  | — |  |  | 43 |  |  | — |
Total | $ | 1,287 |  |  | $ | 1,901 |  |  | $ | 1,514 |  |  | $ | 1,617 |

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- Definition The entire disclosure for detailed information about regulatory assets and liabilities, including current and noncurrent assets created when regulatory agencies permit the deferral of costs to the balance sheet that would otherwise be required to appear on the company's income statement and would be charged against current expenses or revenues, as well as current and noncurrent liabilities created when regulatory agencies permit. + References No definition available. + Details
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