DTE Energy 2012 Annual Report Download - page 79

Table of Contents






Asset removal costs 
$419
Renewable energy 
192
Refundable revenue decoupling/deferred gain 
127
Negative pension offset 
120
Refundable income taxes 
66
Over recovery of Securitization 
53
Refundable uncollectible expense 
31
Energy Optimization 
34
Accrued PSCR/GCR refund 
26
Fermi 2 refueling outage 
23
Low Income Energy Efficiency Fund 
26
Other 
9

1,126
Less amount included in current liabilities 
(107)

$1,019
As noted below, certain 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 DTE Electric or DTE Gas’s rate base, thereby providing a return on invested costs (except as noted).
Certain other regulatory assets are not included in rate base but accrue recoverable carrying charges until surcharges to collect the assets are billed. 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 — Accounting rules for pension and other postretirement benefit costs require, 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. DTE Electric and DTE Gas record the impact of actuarial gains or
losses and prior services costs 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 amortized and recognized as components of net periodic benefit costs. (a)
•Asset retirement obligation — This obligation is primarily for Fermi 2 decommissioning costs. The asset captures the timing differences between
expense recognition and current recovery in rates and will reverse over the remaining life of the related plant. (a)
•Recoverable Michigan income taxes — In July 2007, the Michigan Business Tax (MBT) was enacted by the State of Michigan. State deferred
tax liabilities were established for the Company’s utilities, 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. In May 2011, the MBT
was repealed and the Michigan Corporate Income Tax (MCIT) was enacted. The regulatory asset was remeasured to reflect the impact of the MCIT
tax rate. (a)
•Recoverable income taxes related to securitized regulatory assets — Receivable for the recovery of income taxes to be paid on the non-
bypassable securitization bond surcharge. A non-bypassable securitization tax surcharge recovers the income tax over a fourteen-year period ending
2015. (a)
•Cost to achieve Performance Excellence Process (PEP) — The MPSC authorized the deferral of costs to implement the PEP. These costs
consist of employee severance, project management and consultant support. These costs are amortized over a ten-year period beginning with the
year subsequent to the year the costs were deferred.
77