20030528Application.pdf

10/7
825 N.E. Multnomah
Portland, Oregon 97232
[phone]
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PACIFICORP
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PACIFIC POWER UTAH POWER
May 27 2003
Idaho Public Utilities Commission
472 West Washington
Boise, ID 83702-5983
Attention:Jean D. Jewell
Commission Secretary
RE:APPLICATION OF P ACIFICORP
CASE No. PAC-03-~
PacifiCorp (d.a. Utah Power & Light Company) hereby submits for filing an original and eight copies of its
Application of P ACIFICORP for an Accounting Order Regarding treatment of Certain Asset Retirement
Obligations. An electronic copy of this filing will also be provided.
It is respectfully requested that all formal correspondence and staff requests regarding this matter be addressed to:
By E-mail (preferred):da tareclUes t(tl)JJ ac ifi col1' . com
By Fax:[phone]
By regular mail:Data Request Response Center
PacifiCorp
825 NE Multnomah St., Suite 800
Portland, OR 97232
With copies to:Dan Peterson
PacifiCorp
One Utah Center
201 South Main Street, Suite 2300
Salt Lake City, Utah 84111
Telephone: [phone]
Facsimile: [phone]
E-mail: dan.peterson~acificorp.com
John M. Eriksson
STOEL RIvES LLP
One Utah Center
201 South Main Street, Suite 1100
Salt Lake City, Utah 84111-4904
Telephone: [phone]
Facsimile [phone]
E-mail: imeriksson((V.stoe1.com
Very truly yours
~!~~
/4YY
Vice President, Regulation
Enclosures
Mary S. Hobson, ISB #2142
STOEL RNES LLP
101 South Capital Blvd., Suite 1900
Boise, ill 83702-5958
Tel: [phone]
Fax: [phone]
John M. Eriksson
STOEL RNES LLP
One Utah Center
201 South Main Street, Suite 1100
Salt Lake City, Utah 84111-4904
Telephone: [phone]
Facsimile [phone]
Attorneys for PacifiCorp
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
In the Matter of the Application of
ACIFICORP for an Accounting Order
Regarding Treatment of Certain Asset
Retirement Obligations
APPLICA nON OF ACIFICORP
Case No. PAC-03- oJ"
Pursuant to the provisions of Idaho Code ~ 61-524, and the Rules of Procedure of the
Idaho Public Utilities Commission ("Commission ), PacifiCorp ("Applicant") applies for an
accounting order authorizing the Company to (1) record, as a regulatory asset or a regulatory
liability, the cumulative financial statement impact resulting from the Company
implementation of Statement of Financial Accounting Standards ("SFAS") 143; and (2) record
on an ongoing basis, as a regulatory asset or a regulatory liability, an amount equal to the
difference between the annual SFAS 143 accretion and depreciation expenses and the annual
depreciation expenses based on Commission-approved depreciation rates and coal mine
reclamation accruals. Such an order will not affect the current level of asset removal cost
included in the Company s revenue requirement through depreciation expense. Further
PacifiCorp respectfully requests confirmation by the Commission that asset removal costs, in the
APPLICATION OF P ACIFICORP -
form of negative net salvage, are currently accrued through annual depreciation expense which is
recoverable in rates; that these costs are based on estimates of the final removal costs; and that
such costs are trued-up for ratemaking purposes at the time the related assets are retired and the
actual removal costs are determined.
In support of this Application, PacifiCorp states as follows:
PacifiCorp is an electrical corporation and public utility in the state of Idaho and
is subject to the jurisdiction of the Commission with regard to its rates, service, and accounting
practices. PacifiCorp also provides retail electricity service in the states of California, Oregon
Utah, Washington and Wyoming.
This Application is filed pursuant to I.C. ~ 61-524, which authorizes the
Commission to prescribe the accounting to be used by public utilities subject to its jurisdiction.
Communications regarding this Application should be addressed to:
Dan Peterson
PacifiCorp
One Utah Center
201 South Main Street, Suite 2300
Salt Lake City, Utah 84111
Telephone: [phone]
Facsimile: [phone]
E-mail: dan.peterson(g3pacificorp.com
John M. Eriksson
STOEL RIVES LLP
One Utah Center
201 South Main Street, Suite 1100
Salt Lake City, Utah 84111-4904
Telephone: [phone]
Facsimile [phone]
E-mail: imeriksson(g3stoel.com
APPLICATION OF P ACIFICORP - 2
BACKGROUND
Under the accounting method currently used by the Company for both financial
reporting and ratemaking purposes, the cost of removing a tangible long-lived asset at retirement
is included in the calculation of depreciation rates as negative salvage and is recovered over the
useful life of the asset. Under this method, the accrued removal cost is included in Account 108
Accumulated Depreciation.
In June 2001 , the Financial Accounting Standards Board ("FASB") issued SF AS
143 Accountingfor Asset Retirement Obligations effective for fiscal years after June 15 2002.
Under SFAS 143, entities are required to recognize and account for certain asset retirement
obligations in a manner different from the way that PacifiCorp and other public utilities have
traditionally recognized and accounted for such costs. Specifically, if a legally enforceable asset
retirement obligation ("ARO"), as defined by SF AS 143 is deemed to exist, an entity must
measure and record the liability for the ARO on its books. The liability must be recorded at fair
market value in the period during which the liability is incurred. SFAS 143 defines "fair market
value" as the amount that the entity would be required to pay in an active market to settle the
ARO. SFAS 143 also provides that if market prices are not available, estimates of fair value can
be calculated by discounting the estimated cash flows associated with the ARO to their present
value at the date the liability is to be recorded.
Under SFAS 143, at the time the liability is recorded, a corresponding and
equivalent ARO asset is also recorded on the entity's books as part of the cost of the associated
tangible asset. The ARO asset is then depreciated over the life ofthe associated tangible asset.
In addition, accretion is added to the ARO liability annually to account for the time value of
APPLICATION OF P ACIFICORP - 3
money, so that at the time of retirement the recorded ARO liability will be sufficient to equal the
cash required to meet the legal obligation.
In addition to the forward-looking requirements of SF AS 143 , entities are also
required to recognize the cumulative impact on their financial statements resulting from the
implementation of SF AS 143. This cumulative impact amounts to a transition entry on the
entity s books, so that in future years the financial statements will appear as if the requirements
of SF AS 143 had always been followed.
SF AS 143 recognizes that differences may exist between its requirements and the
treatment of ARO costs for regulatory purposes and provides that a regulated entity subject to
SF AS 71 Accounting for the Effects of Certain Types of Regulation can recognize any
differences between the two approaches as a regulatory asset or a regulatory liability, subject to
the requirements of SF AS 71.
PacifiCorp is required to implement SF AS 143 in order to comply with Generally
Accepted Accounting Principles. Due to the lack of an active market for settling AROs
PacifiCorp will use the expected present value method to determine its ARO liabilities and
offsetting assets.
10.After a thorough review, PacifiCorp has determined that it will need to record
AROs under SF AS 143 for certain generation and mining assets. The Company has also
identified AROs for transmission and distribution assets. However, the timing of those
obligations is indeterminate and the liability cannot be measured and recorded at this time.
There were no material AROs for general plant assets.
11.In order to reflect the cumulative impact of SF AS 143 for past years, PacifiCorp
will record on its books, as shown on Exhibits 1 and 3 , a series of five transition entries for the
APPLICATION OF P ACIFICORP - 4
generation and mining assets. The first transition entry will record the present value of the
liability for each ARO at the date it was incurred, offset by an increase in the carrying value of
the related ARO asset. The second transition entry will record the increase in the ARO liability
by the accretion of interest through April 1 , 2003. The third transition entry will record the
accumulated depreciation on each ARO asset from the date the ARO was incurred through April
2003 the date on which PacifiCorp implemented SFAS 143. The fourth transition entry will
reverse the accumulated retirement costs associated with the generation and mining assets that
have been previously accrued on the Company s books. The net difference between these four
transition entries is the cumulative impact of the implementation of SF AS 143 for the generation
and mining assets.
12.PacifiCorp seeks Commission approval to record that cumulative impact as a
regulatory asset, or a regulatory liability. As shown in the fifth transition entry on Exhibit 1 , the
Company proposes to record the cumulative impact as a regulatory asset if the retirement costs
previously accrued on the Company s books are less than the ARO liability under SFAS 143.
Conversely, if the previously accrued retirement costs are greater than the SFAS 143 ARO
liability, the Company proposes to record the cumulative impact as a regulatory liability. Under
this proposed treatment, the SF AS 143 transition entries will net to zero for ratemaking purposes.
13.In addition to the transition entries, SF AS 143 accounting will require two
annual entries. One entry will be required to record the annual increase in the ARO liability
from the accretion of interest and another will be necessary to record the annual depreciation of
the associated ARO asset on a straight-line basis over its remaining life. Since the Company will
continue to use the Commission approved depreciation rates and coal mine reclamation accruals
APPLICATION OF P ACIFICORP - 5
to determine annual asset retirement costs for ratemaking purposes, these new accounting entries
will not change the level of the costs included in rates.
14.In order to reconcile the requirements of SF AS 143 with regulatory accounting
practices used in the rate setting process and to maintain revenue neutrality with respect to these
costs, the Company seeks Commission approval to record any differences between the annual
SF AS 143 accretion and depreciation expenses and the annual Commission-approved
depreciation rates and coal mine reclamation accruals as a regulatory asset or a regulatory
liability. If the annual asset retirement cost for ratemaking purposes exceeds the annual SF AS
143 ARO cost, the difference will reduce the regulatory asset or increase the regulatory liability.
If the annual SF AS 143 ARO cost exceeds the annual asset retirement cost for ratemaking
purposes, the difference will increase the regulatory asset or reduce the regulatory liability.
Examples of the annual SFAS 143 accretion and depreciation entries and the annual adjustments
to regulatory assets and liabilities are shown in Exhibit 2. Example calculations of the annual
adjustment to the regulatory assets and liabilities for the Blundell Plant and the Jim Bridger Coal
Mine are shown in Exhibits 4 and 5 respectively.
15.As part of the implementation of SF AS 143 , PacifiCorp will, for financial
reporting purposes only, reclassify accumulated removal costs, measured as of March 31 2003
for assets that are not subject to the requirements of SF AS 143 from the accumulated
depreciation balance to a liability account. PacifiCorp has received regulatory approval to accrue
these removal costs through negative net salvage and, for regulatory reporting purposes, these
accumulated costs will remain in accumulated depreciation.
16.Beginning in fiscal year 2004, PacifiCorp will, for financial reporting purposes
only, reclassify the annual amount accrued for removal costs to a liability account and will
APPLICATION OF P ACIFICORP - 6
reclassify the annual actual removal expenditures as an offset to this liability. However, the
accrual for removal costs and actual removal expenditures will remain in accumulated
depreciation for regulatory reporting purposes.
17.Nothing in this application is intended to request any approval regarding future
ratemaking treatment. The Company notes, however, that upon retirement of the related assets
and determination of actual removal costs, such costs will be trued-up for ratemaking purposes
at which time the regulatory accounts associated with these assets will be eliminated. Consistent
with past rate proceedings, the Company will continue to seek recovery of prudently incurred
removal costs, not previously recovered through depreciation expense, in future rate case
proceedings.
18.Information regarding the Company s implementation of SF AS 143 must be
included in the Company s 10-Q for its fiscal year ending June 30, 2003. Accordingly, the
Company respectfully requests that the Commission issue its order approving this application at
the earliest opportunity.
WHEREFORE, PacifiCorp respectfully requests that the Commission consider
this matter under Modified Procedure pursuant to IRUPC 201-204 and grant the following relief:
Authorizing PacifiCorp to record, as a regulatory asset or a regulatory liability,
the cumulative financial statement impact resulting from the Company s implementation of
SF AS 143;
Authorizing PacifiCorp to record on an ongoing basis, as a regulatory asset or
regulatory liability, an amount equal to the difference between the annual SF AS 143 accretion
and depreciation expenses and the annual depreciation expenses based on Commission-
approved depreciation rates and coal mine reclamation accruals; and
APPLICATION OF P ACIFICORP - 7
Confirming that asset removal costs, in the form of negative net salvage, are
currently accrued through annual depreciation expense, which is recoverable in rates; that these
costs are based on estimates of the final removal cost; and that such costs are trued-up for
ratemaking purposes at the time the related assets are retired and the actual removal costs are
determined.
DATED: May :2.J--.2003.
ACIFICORP
ary S. Hobson
John M. Eriksson
Of Attorneys for Applicant
APPLICATION OF P ACIFICORP - 8
Exhibit 1
Recorded Journal Entries:
Transition Entries:
FERC Account
101 781 896
230 781 896
ARO assets
ARO liabilities
To record the liabilities for Generation and Mining asset retirement
obligations with an offsetting increase to the carrying value of the related
assets.
Cumulative-effect adjustment
ARO liabilities
121 298 669
230 121 298 669
To record the accretion of interest on the asset retirement obligation
liabilities through March 31 , 2003.
Cumulative-effect adjustment
Accumulated depreciation - ARO assets
37,450 290
108 37,450,290
To record the depreciation on the ARO assets through March 31
2003.
Accumulated depreciation - Production 108 16,361 148
Decommisioning - Trojan 228.42 675 000
Reclamation - Bridger Mine 253 108 632 846
Reclamation - Glenrock Mine 253.840 024
Reclamation - Energy West Mines 253.593 658
Cumulative-effect adjustment 163 102 676
To reverse the removal costs embeddded in accumulated
depreciation reserve, to reverse the reserve set up for Trojan Nuclear
decommissioning of radioactive contaminated assets, and to reverse the
reserve for reclamation of the Coal Mines.
Cumulative-effect adjustment 353 717
Regulatory assets 182.771 617
Cumulative-effect adjustment to income 434 470 993
Regulatory liabilities 254 596,327
To reclassify the cumulative-effect adjustment to the authorized
regulatory assets and regulatory liaiblities.
Note: For detail of entries see exhibit 3.
Page 1 of 1
Exhibit 2
Recorded Joumal Entries:
FERC Account
FY 2004 Accretion and Depreciation Entries:
Accretion expense (on Generation ARO liabilities)
Accretion expense (on Glenrock Mine ARO liability)
Fuel expense (on Mining ARO liabilities)
ARO liabilities
411.
411.
151
230
473,440
744 155
800 588
018 183
To record accretion expense on the asset retirement obligation
liabilities
Depreciation expense (on Generation ARO assets)
Fuel expense (on Mining ARO assets)
Accumulated depreciation - ARO assets
403.
151
108
847 137
885 869
733,006
To record straight-line depreciation on the ARO assets
Regulatory assets
Amortization expense (on Generation ARO liabilities)
182.410 373
407 410,373
254 409 300
407 409,300
151 141 909
182.141 909
254 582 366
151 582 366
Regulatory liabilities
Amortization expense (on Generation ARO liabilities)
Fuel expense (on Mining ARO liabilities)
Regulatory assets
Regulatory liabilities
Fuel expense (on Mining ARO liabilities)
To record adjustments to the regulatory assets and regulatory
liabilities for the difference in the regulation approved accruals and the
FAS 143 accruals.
Note: For detail of entries see exhibit 3.
Page 1 of 1
FAS 143 Asset Retirement Obligation Transition Amounts Exhibit 3
FY 2004
Accum FY 2004 Regulatory
Depreciation Cumulative FY 2004 FY 2004 Regulatory Asset/
ARO Asset on ARO ARO Liability Prior Accum Effect Accretion Depreciation Approved Liability
ARO Description (1)Asset (1)Depreciation Adjustment Expense Expense Accruals Adjustment
Production Facilities
Colstrip Ponds 3 & 4 694 (34 491)(227,940)149,027 710 13,186 156 13,959 383
American Fork Hydro Plant 760,010 (760 010)638 190 003 144 937 67,704
Hermiston Plant 674 204 (159 680)127 883)275,910 337,449 66,365 742 519 16,588
Blundell Plant - 31 719 893 (350 218)(1,838,328)450 619 018 034 286 19,457 782 105,961
Dave Johnston Landfill - 6 581,138 (581 138)977 114 42,308 783
Hunter Original Landfill - 5 871 104)(57,998)28,924 21,307 218 338 717 (161)
Jim Bridger Plant Landfill - 23 755,010 (355,299)340 495)756 346 184,438 50,575 206 203 578
Jim Bridger Plant FGD Pond 1 - 45 670 586 600 978)(2,699,788)592 846 37,334 015 608 126,623
Jim Bridger Plant Evap Pond 3 - 46 401 (58 248)(421 951)318 745 053 359 009 22,421 947
Jim Bridger Plant Water Pipeline - 34 266,914 (781,713)634,062)221 542 927 319 297,508 26,956 296 951 27,513
Jim Bridger Plant Raw Water Pond - 36 833 (41 898)(292,173)220,693 545 482 496 15,524 1 ,454
Subtotal - Positive Cumulative Adjustment (2)699,554 (3,390 629)(14 981 766)014 652 658 189 672,609 410,085 672 321 410 373
Trojan Nuclear Plant 817 701)675 000 (857 299)736 736
Hunter Landfill - 4 307,531 (233 488)(1,590 371)529 401 (13,073)64,241 46,698 515 39,424
Huntington Combustion Waste - 7 703 881 (39 105)(729 890)436 (10 322)068 105 200 973
Huntington Landfill - 8 110 115 118)(115,749)000 (3,248)922 118 982 058
Jim Bridger Plant FGD Pond 2 - 47 157 011 (610 984)467 799)143 876 (222 104)289 732 197 170 391,704 95,198
Naughton Plant Landfill - 10 886 (19 967)(105,750)85,742 (29,911)620 2,496 289 827
Naughton Plant 1 & 2 Clearwater Pond - 18 123 785 (35 367)(188 857)161 398 (60 959)241 421 955 707
Naughton Plant 1 & 2 Ash Pond - 18 125 732 (321 638)717 499)1,467 709 (554,304)130 205 528 807
Naughton Plant 3 Clearwater Pond - 15 276 591 (79,026)(421 988)360 622 (136 199)882 878 22,243 517
Naughton Plant 3 Ash Pond - 15 1,423 598 (406 742)171 947)856,072 (700 981)117 772 843 114,482 54,133
Naughton Plant Unit 3 FGD Pond 1 - 19 415 716 (69 286)(513,485)281 180 (114 125)27,843 322 065 100
Naughton Plant Unit 3 FGD Pond 2 - 14 547 110 (91 185)(675 782)370 060 (150 203)644 796 35,620 820
Subtotal - Negative Cumulative Adjustment (2)260 956 912 906)(17 516 818)12,021,496 (2,852,728)800 831 437 052 828 583 409,300
Total Production 960,510 303 535)(32,498,584)036 148 (194 539)1,473,440 847 137 500,904 819 673
Coal Mine Facilities
Deer Creek Mine 572 867 (472,815)(1,807,138)593 658 113 428 178 18,913 246 000 (141 909)
Glenrock Mine -(33 311 017)840 024 470 993 744 155
Subtotal - Positive Cumulative Adjustment (2)572,867 (472,815)(35 118 155)33,433 682 584,421 829 333 913 246 000 (141 909)
Bridger Mine 248 519 (31 673 940)(128 463,826)108 632 846 743,599)715,410 866 956 582,366
Subtotal - Negative Cumulative Adjustment (2)57,248 519 (31 673 940)(128,463 826)108 632,846 743 599)715 410 866 956 582,366
Total Mining 821 386 (32 146 755)(163 581 981)142,066 528 159 178)544 743 885 869 246 000 440,457
Total
Total- Positive Cumulative Adjustment (2)272,421 863,444)(50,099,921)42,448 334 242 610 501 942 428 998 918,321 268,464
Total- Negative Cumulative Adjustment (2)509 475 (33 586 846)(145 980 644)120 654 342 596,327)516 241 304 008 828 583 991 666
Total Net Asset Retirement Obligations 781 896 (37,450 290)(196 080 565)163 102 676 353 717)018 183 733 006 746 904 260 130
. Bridger Mine - 100% of liability - full amount carried on Bridger's books - minority interest shows 1/3,
.. Gelnrock Mine - Cumulative effect will not be set up as a regulatory asset.
(1) The interest accretion on the asset retirement obligation liabilites through March 31 , 2003 can be determined for individual facilities by subtracting the ARO asset
from the ARO liability,
(2) In order to more clearly document Transition Entry No, 5, the facilities on this page have been grouped according to whether the application of FAS 143 to them results
in a "positive cumulative effect adjustment" or a "negative cumulative effect adjustmenf', A positive cumulative adjustment leads in turn to recording a regulatory
asset and a negative cumulative adjustment leads to recording a regulatory liability,
Page 1 of 1
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Blundell Plant Exhibit 4
Changes to the ARC Liability Over Time
Fiscal ARO Liability ARO Decommissioning ARO Liability
Year Beg of Year Accretion Exp Cashflow End of Year
2004 838 328)(98 286)936 614)
2005 936 614)(103 541)040 155)
2006 040 155)(109 077)149 232)
2007 149 232)(114 909)264 141)
2008 264 141)(121 053)385 194)
2009 385 194)(127 526)512 720)
2010 512 720)(134 344)647 064)
2011 647 064)(141 527)788 591)
2012 788 591)(149 094)937 685)
2013 937 685)(157 066)(3,094 751)
2014 094 751)(165,464)260 215)
2015 260 215)(174 311)(3,434 526)
2016 (3,434 526)(183 631)618 157)
2017 618 157)(193,450)811 607)
2018 811 607)(203 793)015,400)
2019 015,400)(214 690)230 090)
2020 230 090)(226 169)(4,456 259)
2021 (4,456,259)(238 262)694 521)
2022 694 521)(251 001)945 522)
2023 945 522)(264,422)000 000 209 944)
2024 209 944)(138 905)000 000 348 849)
Assued that the actual decommissioning cash flows equal 4 000 000
Page 2 of 3
Blundell Plant Exhibit 4
Changes to the Regulatory Asset Over Time
Removal Approved
Fiscal Regulatory Asset ARO ARO in Depreciation Regulatory Asset
Year Beg of Year Accretion Exp Depree Exp Rates End of Year
2004 018 034 286 19,457 (11 782)123 995
2005 123 995 103 541 19,457 (11 782)235 210
2006 235 210 109 077 19,457 (11 782)351 962
2007 351 962 114 909 19,457 (11 782)1,474 545
2008 1,474 545 121 053 19,457 (11 782)603 273
2009 603 273 127 526 457 (11 782)738,473
2010 738,473 134 344 19,457 (11 782)880,492
2011 880,492 141 527 19,457 (11 782)029 693
2012 029 693 149 094 19,457 (11 782)186,462
2013 186,462 157 066 19,457 (11 782)351 203
2014 351 203 165,464 19,457 (11 782)524 341
2015 524 341 174 311 19,457 (11 782)706 327
2016 706 327 183 631 19,457 (11 782)897 632
2017 897 632 193,450 19,457 (11 782)098 757
2018 098 757 203 793 19,457 (11 782)310 224
2019 310 224 214 690 457 (11 782)532 589
2020 532 589 226 169 19,457 (11 782)766,433
2021 766,433 238 262 19,457 (11 782)012 369
2022 012 369 251 001 19,457 805)277 022
2023 277 022 264,422 541,444
2024 541,444 138 905 680 349
Entries at the end of Removal:
108 - Accumulated Depreciation - ARO Asset
101 - ARO Asset
719 893
719 893
Retire the ARO Asset
230 - ARO Liability
411.6 - Gain from disposition of utility plant
348 849
348 849
Record the gain on the settlement of the ARO liability
182 - Regulatory Asset
182 - Regulatory Asset
680 349
680 349
Set up regulatory asset to be amortized over a period determined with commissions to account 407
Page 3 of 3
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~ ~ ~ ~ ~ ~ ~ ~ ~
OJN N N N N N N N N N N N N N N N N N N N N N N N N N
Page 1 of 3
Bridger Mine , Exhibit 5
Changes to the ARO Liability Over Time
Fiscal ARO Liability ARO Reclamation ARO Liability
Year Beg of Year Accretion Exp Cashflow End of Year
2004 (128,463 826)715 410)149 999 (134 029 237)
2005 (134 029 237)977 204)935 033 (137 071,408)
2006 (137 071,408)190 256)279 528 (139 982 136)
2007 (139 982 136)393 284)461 921 (135 913,499)
2008 (135 913,499)376 928)970 208 (130 320 219)
2009 (130 320 219)270 393)970,484 (125 620 128)
2010 (125 620 128)169 881)447 360 (121 342 649)
2011 (121 342 649)061 124)11 ,485 202 (115 918 571)
2012 (115 918 571)881 301)973,457 (108 826,415)
2013 (108,826 415)601 221)031,484 (101 396 152)
2014 (101 396 152)275,404)016 056 (95 655 500)
2015 (95 655 500)023,402)836 179 (91 842 723)
2016 (91 842 723)859 063)269 698 (89 432 088)
2017 (89 432 088)759 075)147 927 (86 043 236)
2018 (86 043 236)606 609)268 895 (82 380 950)
2019 (82 380 950)(4,435 953)818 148 (76 998 755)
2020 (76 998 755)172 743)9,411 797 (71 759 701)
2021 (71 759 701)911 311)481 395 (66 189 617)
2022 (66 189 617)627 022)003 246 (60 813 393)
2023 (60 813 393)347,408)948 252 (54 212 549)
2024 (54 212 549)996,488)221 254 (44 987 783)
2025 (44 987 783)497 791)232 288 (30 253 286)
2026 (30 253 286)690 090)037,480 (16 905 896)
2027 (16 905 896)(950 232)776 734 079 394)
2028 079 394)(287 634)102 098 (264 930)
2029 (264 930)(15 143)280 073
Page 2 of 3
Bridger Mine Exhibit 5
Changes to the Regulatory Liability Over Time
Increase to Increase to
Fiscal Regulatory Liability ARO ARO Reclamation from Reclamation from Regulatory Liability
Year Beg of Year Accretion Exp Depree Exp Trust Earnings *Cost of Fuel **End of Year
2004 743 599)715,410 866 955 109 341)270 575)
2005 270 575)977 204 863,975 355 901)(3,474 122)259 419)
2006 259,419)190 256 815,421 617 255)(3,474 122)345 119)
2007 345 119)393 284 770 554 894 291)474 122)549 694)
2008 549 694)376 928 652 075 (5,187 949)(3,474 122)182 762)
2009 182 762)270,393 540 590 285 336)474 122)131 237)
2010 131 237)169 881 1,446 930 075 148)(3,474 122)063 696)
2011 063 696)061 124 370 518 721 679)474 122)827 855)
2012 827 855)881 301 298 475 271 221)474 122)393,422)
2013 393,422)601 221 224 720 747 346)(3,474 122)788 949)
2014 788 949)275,404 157 384 250 760)(3,474 122)081 043)
2015 081 043)023,402 102 152 850 239)(3,474 122)279 850)
2016 279 850)859 063 059 146 538 077)474 122)373 840)
2017 373 840)759 075 023 627 227 833)(3,474 122)293 093)
2018 293 093)606 609 987 931 868 998)474 122)041 673)
2019 041 673)4,435 953 919 345 (1,438 527)(3,474 122)599 024)
2020 599 024)172 743 845 362 (947 940)(3,474 122)002 981)
2021 002 981)911 311 772 690 (577 000)(3,474 122)370 102)
2022 370 102)627 022 700 028 (545 338)(3,474 122)062 512)
2023 062 512)347,408 620 610 (514 856)474 122)083 472)
2024 083,472)996,488 536 091 (415 875)(3,474 122)440 890)
2025 440 890)2,497 791 943 099)
2026 943 099)690,090 253 009)
2027 253 009)950 232 (302 777)
2028 (302 777)287 634 (15 143)
2029 (15,143)143
Entries at the end of Reclamation:
108 - Accumulated Depreciation - ARO Asset
101 - ARO Asset
248 519
248 519
Retire the ARO Asset
* Estimated Trust Fund Earnings
** Straight-line basis used for presentation purposes - actual accrual will be on a units-of-production basis
Page 3 of 3