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Regulatory Matters: | 6 Months Ended
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Jun. 30, 2022
Regulatory Assets and Liabilities Disclosure [Abstract] |
Regulatory Matters | Regulatory Matters We had the following regulatory assets and liabilities (in thousands):
| As of | As of
| June 30, 2022 | December 31, 2021
Regulatory assets |  |
Winter Storm Uri (a) | $ | 402,971 |  | $ | 509,025 |
Deferred energy and fuel cost adjustments (b) | 71,701 |  | 59,973 |
Deferred gas cost adjustments (b) | 8,083 |  | 9,488 |
Gas price derivatives (b) | 4,845 |  | 2,584 |
Deferred taxes on AFUDC (b) | 7,426 |  | 7,457 |
Employee benefit plans and related deferred taxes (c) | 87,130 |  | 88,923 |
Environmental (b) | 1,360 |  | 1,385 |
Loss on reacquired debt (b) | 20,112 |  | 21,011 |
Deferred taxes on flow through accounting (b) | 69,811 |  | 63,243 |
Decommissioning costs (b) | 4,717 |  | 5,961 |
Other regulatory assets (b) | 24,212 |  | 27,549 |
Total regulatory assets | 702,368 |  | 796,599 |
Less current regulatory assets | (267,725) |  | (270,290) |
Regulatory assets, non-current | $ | 434,643 |  | $ | 526,309 |
Regulatory liabilities |  |
Deferred energy and gas costs (b) | $ | 15,899 |  | $ | 6,113 |
Employee benefit plan costs and related deferred taxes (c) | 31,330 |  | 32,241 |
Cost of removal (b) | 184,111 |  | 179,976 |
Excess deferred income taxes (c) | 259,674 |  | 264,042 |
Other regulatory liabilities (c) | 24,984 |  | 20,579 |
Total regulatory liabilities | 515,998 |  | 502,951 |
Less current regulatory liabilities | (33,356) |  | (17,574) |
Regulatory liabilities, non-current | $ | 482,642 |  | $ | 485,377 |
__________ (a) Timing of Winter Storm Uri incremental cost recovery and associated carrying costs vary by jurisdiction and Wyoming Gas is still subject to pending application with the WPSC. See further information below. (b) Recovery of costs, but we are not 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 2 of the Notes to the Consolidated Financial Statements in our 2021 Annual Report on Form 10-K. Winter Storm Uri In February 2021, a prolonged period of historic cold temperatures across the central United States, which covered all of our Utilities’ service territories, caused a substantial increase in heating and energy demand and contributed to unforeseeable and unprecedented market prices for natural gas and electricity. As a result of Winter Storm Uri, we incurred significant incremental fuel, purchased power and natural gas costs. Our Utilities submitted Winter Storm Uri cost recovery applications in our state jurisdictions seeking to recover $546 million of these incremental costs through separate tracking mechanisms over a weighted-average recovery period of 3.5 years. These incremental cost estimates are subject to adjustments as final decisions are issued by the respective utility commissions. In these applications, we sought approval to recover carrying costs. For three and six months ended June 30, 2022 and three and six months ended June 30, 2021, $12 million, $15 million, $0.1 million and $0.1 million, respectively, of carrying costs were accrued and recorded to a regulatory asset. The carrying costs accrued during the three and six months ended June 30, 2022 included a one-time, $10 million true-up to reflect Commission authorized rates. On January 27, 2022, Kansas Gas received approval from the KCC for its Winter Storm Uri cost recovery settlement with final rates implemented in February 2022. In March 2022, Colorado Electric and Colorado Gas received approval from the CPUC for their respective Winter Storm Uri cost recovery settlements with final rates implemented in April 2022. In June 2022, Arkansas Gas received approval from the APSC for its Winter Storm Uri cost recovery application. The APSC had previously approved interim cost recovery effective in June 2021. To date, Arkansas Gas, Colorado Electric, Colorado Gas, Iowa Gas, Kansas Gas, Nebraska Gas and South Dakota Electric received commission approval of their Winter Storm Uri cost recovery applications. Additionally, Wyoming Gas received approval for interim cost recovery subject to a final decision on carrying costs and recovery period at a later date. For the six months ended June 30, 2022, our Utilities collected $111 million of Winter Storm Uri incremental costs and carrying costs from customers. As of June 30, 2022, we estimate that our remaining Winter Storm Uri regulatory asset has a weighted-average recovery period of 3.0 years. TCJA As part of Kansas Gas’s 2021 rate review settlement agreement, Kansas Gas will deliver $3.0 million of TCJA and state tax reform benefits to customers, annually, for three years starting in 2022 (approximately $9.1 million of total benefits expected to be delivered). For the three and six months ended June 30, 2022, Kansas Gas delivered TCJA and state tax reform bill credits to customers of $0.7 million and $1.5 million, respectively. These bill credits, which resulted in a reduction of revenue, were offset by a reduction in income tax expense and resulted in an immaterial impact to Net income for the three and six months ended June 30, 2022. Arkansas Gas On December 10, 2021, Arkansas Gas filed a rate review with the APSC seeking recovery of significant infrastructure investments in its 7,200-mile natural gas pipeline system. The rate review requests $22 million in new annual revenue with a capital structure of 50.9% equity and 49.1% debt and a return on equity of 10.2%. The request seeks to finalize rates in the fourth quarter of 2022. Wyoming Electric On June 1, 2022, Wyoming Electric filed a rate review with the WPSC seeking recovery of significant infrastructure investments in its 1,330-mile electric distribution and 59-mile electric transmission systems. The rate review requests $15 million in new annual revenue with a capital structure of 54% equity and 46% debt and a return on equity of 10.3%. The request seeks to finalize rates in the first quarter of 2023.

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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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