DTE Energy 2012 Annual Report Download - page 78
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Table of Contents
decommissioning liability. The decommissioning of Fermi 1 is funded by DTE Electric. Contributions to the Fermi 1 trust are discretionary. See Note 3 for
additional discussion of Nuclear Decommissioning Trust Fund Assets.
Regulation
DTE Electric and DTE Gas are subject to the regulatory jurisdiction of the MPSC, which issues orders pertaining to rates, recovery of certain costs,
including the costs of generating facilities and regulatory assets, conditions of service, accounting and operating-related matters. DTE Electric is also regulated
by the FERC with respect to financing authorization and wholesale electric activities. Regulation results in differences in the application of generally accepted
accounting principles between regulated and non-regulated businesses.
The Company is unable to predict the outcome of the unresolved regulatory matters discussed herein. Resolution of these matters is dependent upon
future MPSC orders and appeals, which may materially impact the financial position, results of operations and cash flows of the Company.
Regulatory Assets and Liabilities
DTE Electric and DTE Gas are required to record regulatory assets and liabilities for certain transactions that would have been treated as revenue or
expense in non-regulated businesses. Continued applicability of regulatory accounting treatment requires that rates be designed to recover specific costs of
providing regulated services and be charged to and collected from customers. Future regulatory changes or changes in the competitive environment could result
in the discontinuance of this accounting treatment for regulatory assets and liabilities for some or all of our businesses and may require the write-off of the
portion of any regulatory asset or liability that was no longer probable of recovery through regulated rates. Management believes that currently available facts
support the continued use of regulatory assets and liabilities and that all regulatory assets and liabilities are recoverable or refundable in the current rate
environment.
The following are balances and a brief description of the regulatory assets and liabilities at December 31:
Recoverable pension and postretirement costs:
Pension
$2,208
Postretirement costs
778
Asset retirement obligation
420
Recoverable Michigan income taxes
324
Recoverable income taxes related to securitized regulatory assets
316
Cost to achieve Performance Excellence Process
116
Accrued PSCR/GCR revenue
147
Other recoverable income taxes
81
Choice incentive mechanism
166
Unamortized loss on reacquired debt
64
Deferred environmental costs
49
Recoverable restoration expense
58
Recoverable revenue decoupling
18
Enterprise Business Systems costs
18
Other
90
4,853
Less amount included in current assets
(314)
$4,539
Securitized regulatory assets
$ 577
76