SOUTHERN STAR CENTRAL CORP | 2013 | FY | 3


Regulatory Assets and Liabilities
As a rate regulated enterprise, Central meets the requirements for accounting under the Effects of Certain Types of Regulation Topic of the Accounting Standards Codification, or ASC. As such, certain costs that would otherwise be charged to expense are deferred as regulatory assets based on expected recovery from customers in future rates. Likewise, certain credits that would otherwise be recognized in income are deferred as regulatory liabilities pending refund or return to customers through future rates. Recognition of regulatory assets or liabilities is generally based on specific regulatory requirements or precedent for each such matter.
The following regulatory assets or liabilities are included on the accompanying Consolidated Balance Sheets as Costs recoverable from customers or Costs refundable to customers at December 31, 2013 and 2012 and classified as current or noncurrent depending on the expected timing of recovery (expressed in thousands):
 
 
2013
 
2012
Current Assets:
 
 
 
 
Environmental costs
 
$
750

 
$
750

Fuel costs
 

 
3,240

Total Current Assets
 
750

 
3,990

Noncurrent Assets:
 
 
 
 
Environmental costs
 
222

 
450

Income taxes on AFUDC equity
 
5,764

 
5,166

Gas imbalance cash cost recoverable
 
64

 
69

Postretirement benefits other than pensions
 
23,984

 
38,282

Pensions
 
23,652

 
40,680

Asset retirement obligations
 
362

 
620

Total Noncurrent Assets
 
54,048

 
85,267

Total Assets
 
54,798

 
89,257

Current Liabilities:
 
 
 
 
Costs refundable to customers
 
88

 
3

Total Current Liabilities
 
88

 
3

Noncurrent Liabilities:
 
 
 
 
Gas imbalance cash cost refundable
 
92

 
177

Postretirement benefits other than pensions
 
3,701

 

Total Noncurrent Liabilities
 
3,793

 
177

Total Liabilities
 
3,881

 
180

Net Regulatory Assets
 
$
50,917

 
$
89,077


These amounts are either included in Central’s current rate filing or covered by specific rate mechanisms, which govern the timing of refunds or recovery.

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