Regulatory accounting
Transco and Northwest Pipeline are regulated by the Federal Energy Regulatory Commission (FERC). Their rates, which are established by the FERC, are designed to recover the costs of providing the regulated services, and their competitive environment makes it probable that such rates can be charged and collected. Therefore, our management has determined that it is appropriate to account for and report regulatory assets and liabilities related to these operations consistent with the economic effect of the way in which their rates are established. Accounting for these operations that are regulated can differ from the accounting requirements for non regulated operations. The components of our regulatory assets and liabilities relate to the effects of deferred taxes on equity funds used during construction, asset retirement obligations, fuel cost differentials, levelized incremental depreciation, negative salvage, and postretirement benefits. Our current and noncurrent regulatory asset and liability balances for the years ended December 31, 2013 and 2012 are as follows:
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| | | | | | | |
| December 31, |
| 2013 |
| 2012 |
| (Millions) |
Current assets reported within Other current assets | $ | 39 |
|
| $ | 39 |
|
Noncurrent assets reported within Regulatory assets, deferred charges, and other | 315 |
|
| 275 |
|
Total regulated assets | $ | 354 |
|
| $ | 314 |
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|
|
Current liabilities reported within Other accrued liabilities | $ | 19 |
|
| $ | 15 |
|
Noncurrent liabilities reported within Regulatory liabilities, deferred income and other | 289 |
|
| 250 |
|
Total regulated liabilities | $ | 308 |
|
| $ | 265 |
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