Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income
Effective January 1, 2013, the Corporation adopted the amendments to ASC Topic 220, Other Comprehensive Income - Reporting of Amounts Out of Accumulated Other Comprehensive Income ("AOCI") as outlined in ASU No. 2013-02. The amendments improve the reporting of reclassifications out of AOCI and require entities to report, in one place, information about reclassifications out of AOCI and to present details of the reclassifications in the disclosure for changes in AOCI balances. The effect of the reclassification of significant items to net income in their entirety during the reporting period must be reported in the respective line items in the statement where net income is presented. The effect of items not reclassified to net income in their entirety during the reporting period are to be presented in the notes to the consolidated financial statements. The amendments were applied by the Corporation prospectively commencing on January 1, 2013 and did not materially impact the Corporation's interim consolidated financial statements for the three months ended March 31, 2013.
3. REGULATORY ASSETS AND LIABILITIES
A summary of the Corporation's regulatory assets and liabilities is provided below. A detailed description of the nature of the Corporation's regulatory assets and liabilities is provided in Note 7 to the Corporation's 2012 annual audited consolidated financial statements.
As at March 31, December 31,($ millions) 2013 2012----------------------------------------------------------------------------Regulatory assetsDeferred income taxes 727 713Employee future benefits 492 498Deferred lease costs - FortisBC Electric 85 77Rate stabilization accounts - electric utilities 62 57Deferred energy management costs 53 50Deferred operating overhead costs 35 32Deferred net losses on disposal of utility capital assets and intangible assets 32 27Rate stabilization accounts - FortisBC Energy companies 29 48Customer Care Enhancement Project cost deferral 23 24Income taxes recoverable on other post- employment benefit ("OPEB") plans 23 23Alternative energy projects cost deferral 21 18Whistler pipeline contribution deferral 13 14Deferred development costs for capital projects 10 10Deferred costs - smart meters 6 9Replacement energy deferral - Point Lepreau (1) - 47Other regulatory assets 62 53----------------------------------------------------------------------------Total regulatory assets 1,673 1,700Less: current portion (129) (185)----------------------------------------------------------------------------Long-term regulatory assets 1,544 1,515--------------------------------------------------------------------------------------------------------------------------------------------------------(1) In March 2013 Maritime Electric received proceeds of approximately $47 million from the Government of Prince Edward Island upon its assumption of the utility's regulatory asset associated with the deferral of certain incremental replacement energy costs during the refurbishment of the New Brunswick Power Point Lepreau nuclear generating station. As at March 31, December 31,($ millions) 2013 2012----------------------------------------------------------------------------Regulatory liabilitiesNon-asset retirement obligation removal cost provision 494 486Rate stabilization accounts - FortisBC Energy companies 133 117Alberta Electric System Operator charges deferral 71 44Rate stabilization accounts - electric utilities 44 46Deferred income taxes 11 12Deferred interest 9 9Meter reading and customer service variance deferral 9 6Income tax variance deferral 3 7Other regulatory liabilities 32 26----------------------------------------------------------------------------Total regulatory liabilities 806 753Less: current portion (110) (72)----------------------------------------------------------------------------Long-term regulatory liabilities 696 681--------------------------------------------------------------------------------------------------------------------------------------------------------
