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Regulatory Matters: | 9 Months Ended
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Sep. 30, 2020
Regulatory Assets and Liabilities Disclosure [Abstract] |
Regulatory Matters | Regulatory Matters We had the following regulatory assets and liabilities (in thousands) as of:
| September 30, 2020 | December 31, 2019
Regulatory assets |  |
Deferred energy and fuel cost adjustments (a) | $ | 35,878 |  | $ | 34,088 |
Deferred gas cost adjustments (a) | 3,670 |  | 1,540 |
Gas price derivatives (a) | 499 |  | 3,328 |
Deferred taxes on AFUDC (b) | 7,683 |  | 7,790 |
Employee benefit plan costs and related deferred taxes (c) | 114,971 |  | 115,900 |
Environmental (a) | 1,417 |  | 1,454 |
Loss on reacquired debt (a) | 23,342 |  | 24,777 |
Renewable energy standard adjustment (a) | — |  | 1,622 |
Deferred taxes on flow through accounting (c) | 44,528 |  | 41,220 |
Decommissioning costs (b) | 9,421 |  | 10,670 |
Gas supply contract termination (a) | 4,027 |  | 8,485 |
Other regulatory assets (a) | 25,800 |  | 20,470 |
Total regulatory assets | 271,236 |  | 271,344 |
Less current regulatory assets | (49,493) |  | (43,282) |
Regulatory assets, non-current | $ | 221,743 |  | $ | 228,062 |
Regulatory liabilities |  |
Deferred energy and gas costs (a) | $ | 14,443 |  | $ | 17,278 |
Employee benefit plan costs and related deferred taxes (c) | 40,719 |  | 43,349 |
Cost of removal (a) | 169,426 |  | 166,727 |
Excess deferred income taxes (c) | 286,055 |  | 285,438 |
Other regulatory liabilities (c) | 16,956 |  | 23,860 |
Total regulatory liabilities | 527,599 |  | 536,652 |
Less current regulatory liabilities | (22,282) |  | (33,507) |
Regulatory liabilities, non-current | $ | 505,317 |  | $ | 503,145 |
__________ (a) Recovery of costs, but we are not allowed a rate of return. (b) In addition to recovery of costs, we are allowed a rate of return. (c) In addition to recovery or repayment of costs, we are allowed a return on a portion of this amount or a reduction in rate base. Regulatory Activity Except as discussed below, there have been no other significant changes to our Regulatory Matters from those previously disclosed in Note 13 of the Notes to the Consolidated Financial Statements in our 2019 Annual Report on Form 10-K. Colorado Gas Rate Reviews and Jurisdictional Consolidation On September 11, 2020, Colorado Gas filed a rate review with the CPUC seeking recovery on significant infrastructure investments in its 7,000-mile natural gas pipeline system. The rate review requests $13.5 million in new annual revenue with a capital structure of 50% equity and 50% debt and a return on equity of 9.95%. The request seeks to implement new rates in the second quarter of 2021. On September 11, 2020, in accordance with the final order from the earlier rate review discussed below, Colorado Gas also filed a new SSIR proposal that would recover safety-focused investments in its system over five years. On February 1, 2019, Colorado Gas filed a rate review with the CPUC requesting $2.5 million in new revenue to recover investments in safety, reliability and system integrity and approval to consolidate rates, tariffs, and services of its two existing gas distribution territories. Colorado Gas also requested a new rider mechanism to recover future safety and integrity investments in its system. On May 19, 2020, the CPUC issued a final order which denied the system integrity recovery mechanism and consolidation of rate territories. In addition, the order resulted in an annual revenue decrease of $0.6 million and a return on equity of 9.2%. New rates were effective July 3, 2020. TCJA On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the TCJA. The TCJA reduced the U.S. federal corporate tax rate from 35% to 21%. As such, the Company remeasured our deferred income taxes at the 21% federal tax rate as of December 31, 2017. In 2018, the Company successfully delivered the benefits from the TCJA to most of its utility customers. In 2020, regulatory proceedings resolved the last of the Company’s open dockets seeking approval of its TCJA plans. As a result, the Company relieved certain TCJA-related liabilities, which resulted in an increase to net income for the three and nine months ended September 30, 2020 of $3.5 million and $4.0 million, respectively. Nebraska Gas Jurisdictional Consolidation and Rate Review On June 1, 2020, Nebraska Gas filed a rate review with the NPSC to consolidate rate schedules into a new, single statewide structure and seek recovery on significant infrastructure investments in its 13,000-mile natural gas pipeline system. The rate review requests $17.3 million in new revenue with a capital structure of 50% equity and 50% debt and a return on equity of 10%. Nebraska statute allows for implementation of interim rates 90 days after filing a rate review and Nebraska Gas implemented interim rates effective on September 1, 2020. The request seeks to finalize rates in the first quarter of 2021. Nebraska Gas is also requesting an extension of its SSIR for five years to align the rider recovery mechanism across the consolidated utility. Black Hills Wyoming and Wyoming Electric Wygen I FERC Filing On October 15, 2020, the FERC approved a settlement agreement that represents a resolution of all issues in the joint application filed by Wyoming Electric and Black Hills Wyoming on August 2, 2019 for approval of a new 60 MW PPA. Under the terms of the settlement, Wyoming Electric will continue to receive 60 MW of capacity and energy from the Wygen I power plant. The new agreement will commence on January 1, 2022, replace the existing PPA and continue for 11 years.

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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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