DTE Energy 2012 Annual Report Download - page 80

Table of Contents
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•Accrued PSCR/GCR revenue — Receivable for the temporary under-recovery of and a return on fuel and purchased power costs incurred by
DTE Electric which are recoverable through the PSCR mechanism and temporary under-recovery of and return on gas costs incurred by DTE Gas
which are recoverable through the GCR mechanism.
•Other recoverable income taxes — Income taxes receivable from DTE Electric’s customers representing the difference in property-related deferred
income taxes and amounts previously reflected in DTE Electric’s rates. This asset will reverse over the remaining life of the related plant. (a)
•Choice incentive mechanism (CIM) — DTE Electric receivable for non-fuel revenues lost as a result of fluctuations in electric Customer Choice
sales. The CIM was terminated in the October 20, 2011 MPSC order issued to DTE Electric.
•Unamortized loss on reacquired debt — The unamortized discount, premium and expense related to debt redeemed with a refinancing are
deferred, amortized and recovered over the life of the replacement issue.
•Deferred environmental costs — The MPSC approved the deferral of investigation and remediation costs associated with DTE Gas's former
MGP sites. Amortization of deferred costs is over a ten-year period beginning in the year after costs were incurred, with recovery (net of any
insurance proceeds) through base rate filings. (a)
•Recoverable restoration expense — Receivable for the MPSC approved restoration expense tracking mechanism that tracks the difference
between actual restoration expense and the amount provided for in base rates, recognized pursuant to the MPSC authorization. The restoration
expense tracking mechanism was terminated in the October 20, 2011 MPSC order issued to DTE Electric.
•Recoverable revenue decoupling — Amounts recoverable from DTE Gas customers for the change in revenue resulting from the difference in
weather-adjusted average sales per customer compared to the base level of average sales per customer established by the MPSC. The December
2012 order in DTE Gas' rate case requires the RDM be discontinued effective November 1, 2012. The order provides for a new RDM beginning in
November 2013.
•Enterprise Business Systems (EBS) costs — The MPSC approved the deferral and amortization over ten years beginning in January 2009 of
EBS costs that would otherwise be expensed.
•Securitized regulatory assets — The net book balance of the Fermi 2 nuclear plant was written off in 1998 and an equivalent regulatory asset
was established. In 2001, the Fermi 2 regulatory asset and certain other regulatory assets were securitized pursuant to PA 142 and an MPSC order.
A non-bypassable securitization bond surcharge recovers the securitized regulatory asset over a fourteen-year period ending in 2015.
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(a) Regulatory assets not earning a return or accruing carrying charges.
LIABILITIES
•Asset removal costs — The amount collected from customers for the funding of future asset removal activities.
•Renewable energy — Amounts collected in rates in excess of renewable energy expenditures.
•Refundable revenue decoupling / deferred gain — At December 31, 2011, amounts were accrued as refundable to DTE Electric customers for
the change in revenue resulting from the difference between actual average sales per customer compared to the base level of average sales per
customer established by the MPSC. In 2012, the revenue decoupling liability was reversed and a new regulatory liability representing DTE
Electric's obligation to refund the resulting gain was accrued. See further discussion below.
•Negative pension offset — DTE Gas’ negative pension costs are not included as a reduction to its authorized rates; therefore, the Company is
accruing a regulatory liability to eliminate the impact on earnings of the negative pension expense accrued. This regulatory liability will reverse to
the extent DTE Gas’ pension expense is positive in future years.
•Refundable income taxes — Income taxes refundable to DTE Gas’ customers representing the difference in property-related deferred income taxes
payable and amounts recognized pursuant to MPSC authorization.
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