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Regulatory Asset

Contents

  1. Understanding Regulatory Assets
  2. Navigating Regulatory Accounting Standards
  3. Real-World Example: Southern California Edison

Unlocking the Mysteries of Regulatory Assets in Public Utilities

Understanding Regulatory Assets

Discover the intricacies of regulatory assets, a crucial component of financial management for public utilities, especially in the energy sector. Explore how regulatory assets enable utilities to defer certain costs to their balance sheets, impacting financial statements and rate recoveries.

Navigating Regulatory Accounting Standards

Delve into Government Accounting Standards Board (GASB) regulations governing the recording and treatment of regulatory assets. Learn about the types of expenses eligible for deferral, the discretion of regulators in approving recoverable expenses, and the detailed tracking and disclosure requirements for regulatory assets.

Real-World Example: Southern California Edison

Explore a concrete example of regulatory assets in action with a case study on Southern California Edison (SCE). Understand how SCE utilizes short-term and long-term regulatory assets to manage financial obligations and facilitate rate recoveries.