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,	2017		2016		Recovery/Refund Period
REGULATORY ASSETS
Current regulatory assets:
El Salvador tariff recoveries	$	59	$	54	Quarterly as part of the tariff adjustment
Other	60		34		Various
Total current regulatory assets	119		88
Noncurrent regulatory assets:
IPL and DPL defined benefit pension obligations ⁽¹⁾	298		316		Various
IPL and DPL income taxes recoverable from customers ⁽¹⁾	—		87		Various
IPL deferred Midwest ISO costs	102		114		9 years
IPL environmental costs	48		41		Various
Other	94		97		Various
Total noncurrent regulatory assets	542		655
TOTAL REGULATORY ASSETS	$	661	$	743
REGULATORY LIABILITIES
Current regulatory liabilities:
DPL efficiency program costs	$	10	$	14	Annually as part of the tariff adjustment
Other	7		27		Various
Total current regulatory liabilities	17		41
Noncurrent regulatory liabilities:
IPL and DPL asset retirement obligations	830		795		Over life of assets
IPL and DPL deferred income taxes	243		2		Various
Other	6		5		Various
Total noncurrent regulatory liabilities	1,079		802
TOTAL REGULATORY LIABILITIES	$	1,096	$	843

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⁽¹⁾	Past expenditures on which the Company earns 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:


•	Demand charges at DPL;


•	Unamortized premiums reacquired or redeemed on long term debt at IPL and DPL, which are amortized over the lives of the original issuances; and


•	Unrecovered fuel and purchased power costs at IPL and DPL.

Our regulatory liabilities primarily consist of obligations for removal costs which do not have an associated legal retirement obligation. Our regulatory liabilities also include deferred income taxes associated with the reduction of the U.S. federal income tax rate which will be passed through to our regulated customers via a decrease in future retail rates, see Note 20—Income Taxes for further information.

In the accompanying Consolidated Balance Sheets the current regulatory assets and liabilities are reflected in Other current assets and Accrued and other liabilities, respectively, and the noncurrent regulatory assets and liabilities are reflected 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, 2017				December 31, 2016
	Regulatory Assets		Regulatory Liabilities		Regulatory Assets		Regulatory Liabilities
US SBU	$	602	$	1,095	$	689	$	842
MCAC SBU	59		—		54		—
Brazil SBU	—		1		—		1
Total	$	661	$	1,096	$	743	$	843