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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 Regulatory Assets and Liabilities The following presents our current and long-term regulatory assets and liabilities as of June 30, 2022 and December 31, 2021 and the period we expect to recover or refund such amounts:
| Period of |  | June 30, 2022 |  | December 31, 2021
(in thousands) | Recovery/Refund |  | Current |  | Long-Term |  | Current |  | Long Term
Regulatory Assets |  |  |  |  |  |  |  |  |
Pension and Other Postretirement Benefit Plans 1 | Various |  | $ | 7,791 |  |  | $ | 112,011 |  |  | $ | 7,791 |  |  | $ | 114,961 |
Alternative Revenue Program Riders 2 | Up to 2 years |  | 4,695 |  |  | 5,370 |  |  | 11,889 |  |  | 5,564 |
Asset Retirement Obligations 1 | Asset lives |  | — |  |  | 1,238 |  |  | — |  |  | 742 |
ISO Cost Recovery Trackers 1 | Up to 2 years |  | 440 |  |  | 726 |  |  | — |  |  | 1,342 |
Unrecovered Project Costs 1 | Up to 5 years |  | 356 |  |  | 1,136 |  |  | 2,136 |  |  | 1,455 |
Deferred Rate Case Expenses 1 | Various |  | 477 |  |  | 943 |  |  | 607 |  |  | 1,131 |
Debt Reacquisition Premiums 1 | Up to 11 years |  | 35 |  |  | 228 |  |  | 100 |  |  | 240 |
Fuel Clause Adjustments 1 | Up to 1 year |  | 6,797 |  |  | — |  |  | 4,819 |  |  | — |
Other 1 | Various |  | 84 |  |  | 302 |  |  | — |  |  | 73 |
Total Regulatory Assets |  |  | $ | 20,675 |  |  | $ | 121,954 |  |  | $ | 27,342 |  |  | $ | 125,508 |
Regulatory Liabilities |  |  |  |  |  |  |  |  |
Deferred Income Taxes | Asset lives |  | $ | — |  |  | $ | 128,836 |  |  | $ | — |  |  | $ | 129,437 |
Plant Removal Obligations | Asset lives |  | 8,544 |  |  | 101,458 |  |  | 8,306 |  |  | 101,595 |
Fuel Clause Adjustments | Up to 1 year |  | 1,554 |  |  | — |  |  | 1,554 |  |  | — |
Alternative Revenue Program Riders | Various |  | 3,371 |  |  | 5,104 |  |  | 5,772 |  |  | 3,336 |
Pension and Other Postretirement Benefit Plans | Up to 1 year |  | 2,603 |  |  | — |  |  | 2,603 |  |  | — |
Derivative Instruments | Various |  | 3,120 |  |  | — |  |  | 6,214 |  |  | — |
Other | Various |  | 266 |  |  | 58 |  |  | 395 |  |  | 62 |
Total Regulatory Liabilities |  |  | $ | 19,458 |  |  | $ | 235,456 |  |  | $ | 24,844 |  |  | $ | 234,430 |
1 Costs subject to recovery without a rate of return. |  |  |  |  |  |  |  |  |
2 Amount eligible for recovery includes an incentive or rate of return. |  |  |  |  |  |  |  |  |
Minnesota Rate Case On November 2, 2020, OTP filed an initial request with the MPUC for an increase in revenue recoverable through base rates in Minnesota, and on December 3, 2020, the MPUC approved an interim annual rate increase of $6.9 million, or 3.2%, effective January 1, 2021. On February 1, 2022, the MPUC issued its written order on final rates. The key provisions of the order included a revenue requirement of $209.0 million, based on a return on rate base of 7.18% and an allowed return on equity of 9.48% on an equity ratio of 52.5%. The order also authorized recovery of our remaining Hoot Lake Plant net asset over a five-year period and approved the requested decoupling mechanism for most residential and commercial customer rate groups with a cap of 4% of annual base revenues. On May 12, 2022, OTP's final rate case compliance filing was approved by the MPUC. The filing included final revenue calculations, rate design and resulting tariff revisions, along with a determination of the interim rate refund, which resulted in an increase in revenues during the second quarter of 2022 of $4.1 million. Final rates took effect on July 1, 2022, and we anticipate interim rate refunds will be applied to customer bills in the third quarter of 2022.

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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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