DTE Energy 2009 Annual Report Download - page 22

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The following are the balances of the regulatory assets and liabilities as of December 31:
(in Millions)
Assets
Recoverable pension and postretirement costs
2009 2008
Pension
$ 409
$ 373
Postretirement costs
150
178
Recoverable uncollectible expense
134
122
Deferred income taxes – Michigan Business Tax
64
58
Deferred environmental costs
40
41
Unamortized loss on reacquired debt
32
33
Other
1
1
830
806
Less amount included in current assets
(53)
(32)
$ 777
$ 774
Liabilities
Asset removal costs
$ 349
$ 353
Negative pension offset
133
110
Refundable income taxes
88
93
Deferred income taxes — Michigan Business Tax
56
53
Accrued GCR refund
25
—
651
609
Less amount included in current liabilities and other liabilities
(25)
—
$ 626
$ 609
As noted below, regulatory assets for which costs have been incurred have been included (or are expected to be included, for costs
incurred subsequent to the most recently approved rate case) in MichCon’s rate base, thereby providing a return on invested costs.
Certain regulatory assets do not result from cash expenditures and therefore do not represent investments included in rate base or have
offsetting liabilities that reduce rate base.
ASSETS
• Recoverable pension and postretirement costs — In 2007, the Company adopted ASC 715 (SFAS No. 158) which required, among
other things, the recognition in other comprehensive income of the actuarial gains or losses and the prior service costs that arise
during the period but that are not immediately recognized as components of net periodic benefit costs. The Company received
approval from the MPSC to record the charge related to the additional liability as a regulatory asset since the traditional rate setting
process allows for the recovery of pension and postretirement costs. The asset will reverse as the deferred items are recognized as
benefit expenses in net income. (1)
• Recoverable uncollectible expense — Receivable for the MPSC approved uncollectible expense tracking mechanism that tracks
the difference in the fluctuation in uncollectible accounts and amounts recognized pursuant to the MPSC authorization.
• Deferred income taxes — Michigan Business Tax (MBT) - In July 2007, the MBT was enacted by the State of Michigan. State
deferred tax liabilities were established for the utility, and offsetting regulatory assets were recorded as the impacts of the deferred
tax liabilities will be reflected in rates as the related taxable temporary differences reverse and flow through current income tax
expense. (1)
• Deferred environmental costs — The MPSC approved the deferral and recovery of investigation and remediation costs associated
with former MGP sites. This asset is offset in working capital by an environmental liability reserve. The amortization of the
regulatory asset is not included in our current rates because it is offset by the recognition of insurance proceeds. We will request
recovery of the remaining asset balance in future rate filings after the recognition of insurance proceeds is complete. (1)