v3.24.0.1
REGULATORY MATTERS (Tables)
 12 Months Ended
Dec. 31, 2023
Regulated Operations [Abstract]  
Schedule of PPFAC Regulatory Asset (Liability) Balance
The table below summarizes the PPFAC regulatory asset (liability) balance:
Years Ended December 31,
(in millions)20232022
Beginning of Period$124 $91 
Deferred Fuel and Purchased Power Costs (1)
328 348 
PPFAC and Base Power Recoveries(397)(315)
End of Period$55 $124 
(1)Includes costs eligible for recovery through the PPFAC and base power rates.
Schedule of Regulatory Assets and Liabilities
Regulatory assets and liabilities recorded in the Consolidated Balance Sheets are summarized in the table below:
Remaining Recovery Period (years)December 31,
($ in millions)20232022
Regulatory Assets
Pension and Other Postretirement Benefits (Note 9)
Various$107 $90 
Under Recovered Fuel and Purchased Energy Costs155 124 
Early Generation Retirement CostsVarious48 58 
Lost Fixed Cost Recovery135 25 
Property Tax Deferrals (1)
130 29 
Derivatives (Note 12)
626 3 
Final Mine Reclamation and Retiree Healthcare Costs (2)
56 11 
Income Taxes Recoverable through Future Rates (3)
Various6 6 
Unamortized Loss on Reacquired DebtVarious5 5 
Other Regulatory AssetsVarious12 19 
Total Regulatory Assets330 370 
Less Current Portion1147 185 
Total Non-Current Regulatory Assets$183 $185 
Regulatory Liabilities
Income Taxes Payable through Future Rates (3)
Various$229 $244 
Net Cost of Removal (4)
Various130 43 
Renewable Energy StandardVarious77 73 
Derivatives (Note 12)
628 86 
Demand Side Management19 16 
Deferred Investment Tax CreditsVarious6 7 
Transmission Balancing Accounts15 9 
Pension and Other Postretirement Benefits (Note 9)
Various4 8 
Transmission Revenue Subject to Refund - FERC1— 1 
Other Regulatory LiabilitiesVarious1 2 
Total Regulatory Liabilities489 489 
Less Current Portion193 111 
Total Non-Current Regulatory Liabilities$396 $378 
(1)Recorded as a regulatory asset based on historical ratemaking treatment allowing regulated utilities recovery of property taxes on a pay-as-you-go or cash basis. TEP records a liability to reflect the accrual for financial reporting purposes and an offsetting regulatory asset to reflect recovery for regulatory purposes.
(2)Represents costs associated with TEP’s jointly-owned facilities at San Juan and Four Corners. TEP recognizes these costs at future value and is permitted to fully recover these costs on a pay-as-you-go basis through the PPFAC mechanism. Final mine reclamation costs are expected to be funded by TEP through 2028. San Juan Unit 1 was retired in 2022.
(3)Amortized over five years, 10 years, or the lives of the assets. See Note 1 and Note 13 for additional information regarding income taxes.
(4)Represents an estimate of the future cost of retirement, net of salvage value. These are amounts collected through revenue for transmission, distribution, generation, and general and intangible plant which are not yet expended. In September 2023, the Net Cost of Removal reserve was rebalanced as part of the 2023 Rate Order.