Document
2020 Electric Report Final as Filed
Regulated accounting is
appropriate provided that (i) rates are established by or subject to approval by independent, third-party regulators, (ii) rates
are designed to recover the specific enterprise's cost of service, and (iii) in view of demand for service, it is reasonable to
assume that rates are set at levels that will recover costs and can be charged to and collected from customers., This would result in a charge to earnings and AOCI,
net of applicable income taxes, which could be material., All expenditures
for maintenance and repairs of utility plant are charged to the appropriate maintenance expense accounts., If our credit rating were to fall below investment grade, the counterparties
could require immediate payment or demand immediate and ongoing full overnight collateralization on contracts in net
liability positions., See Note 5 - Regulatory Assets and
Liabilities, for further discussion on how these costs are recovered through rates charged to our customers.