v3.25.1
REGULATORY MATTERS (Tables)
 3 Months Ended
Mar. 31, 2025
Regulated Operations [Abstract]  
Schedule of PPFAC Regulatory Asset Balance
The table below summarizes the PPFAC regulatory asset (liability) balance:
Three Months Ended March 31,
(in millions)20252024
Beginning of Period$(49)$55 
Deferred Fuel and Purchased Power Costs (1)
61 49 
PPFAC and Base Power Recoveries(60)(97)
End of Period$(48)$7 
(1)Includes costs eligible for recovery through the PPFAC and base power rates.
Schedule of PPFAC Regulatory Liability Balance
The table below summarizes the PPFAC regulatory asset (liability) balance:
Three Months Ended March 31,
(in millions)20252024
Beginning of Period$(49)$55 
Deferred Fuel and Purchased Power Costs (1)
61 49 
PPFAC and Base Power Recoveries(60)(97)
End of Period$(48)$7 
(1)Includes costs eligible for recovery through the PPFAC and base power rates.
Schedule of Regulatory Assets and Liabilities
Regulatory assets and liabilities recorded on the Condensed Consolidated Balance Sheets are summarized in the table below:
($ in millions)Remaining Recovery Period
(years)		March 31, 2025December 31, 2024
Regulatory Assets
Pension and Other Postretirement Benefits (Note 9)
Various$102 $103 
Early Generation Retirement CostsVarious44 46 
Lost Fixed Cost Recovery133 31 
Property Tax Deferrals (1)
132 32 
Derivatives (Note 10)
519 19 
Transmission Revenue Requirement Balancing Account114 11 
Final Mine Reclamation (2)
158 9 
Income Taxes Recoverable through Future Rates (3)
Various5 5 
Unamortized Loss on Reacquired DebtVarious4 4 
Other Regulatory AssetsVarious15 16 
Total Regulatory Assets276 276 
Less Current Portion1102 98 
Total Noncurrent Regulatory Assets$174 $178 
Regulatory Liabilities
Income Taxes Payable through Future Rates (3)
Various$212 $209 
Net Cost of Removal (4)
Various102 110 
Renewable Energy StandardVarious90 88 
Over-Recovered Fuel and Purchased Energy Costs148 49 
Deferred Investment Tax CreditsVarious24 4 
Derivatives (Note 10)
518 22 
Pension and Other Postretirement Benefits (Note 9)
Various18 19 
Demand Side Management15 5 
Total Regulatory Liabilities517 506 
Less Current Portion1145 143 
Total Noncurrent Regulatory Liabilities$372 $363 
(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 2040. San Juan Unit 1 was retired in 2022.
(3)Amortized over five years, 10 years, or the lives of the assets.
(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 plant which are not yet expended.