Company: ATO
Filing Date: 2025-11-14
Form Type: 10-K
Source: 0000731802-25-000056
Chunk: 96

Company: ATMOS ENERGY CORP
Filing Date: 2025-11-14
Form: 10-K
Item: Item 8
Chunk 96
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 we operate, which creates regulatory assets and liabilities that are recovered from or refunded to customers over time through the ratemaking process. Substantially all of our regulatory assets are recorded as a component of other current assets and deferred charges and other assets and our regulatory liabilities are recorded as a component of other current liabilities and deferred credits and other liabilities. Deferred gas costs are recorded either in other current assets or liabilities and the long-term portion of regulatory excess deferred taxes and regulatory cost of removal obligation are reported separately. Significant regulatory assets and liabilities as of September 30, 2025 and 2024 included the following: September 30 20252024 (In thousands)Regulatory assets:Pension and postretirement benefit costs$262 $11,243 Infrastructure mechanisms (1)314,047 246,734 Winter Storm Uri incremental costs5,841 10,373 Deferred gas costs140,626 159,762 Regulatory excess deferred taxes (2)49,793 51,380 Recoverable loss on reacquired debt2,903 3,070 Deferred pipeline record collection costs39,035 41,742 System Safety and Integrity Riders (3)43,625 38,632 Other12,597 16,454 $608,729 $579,390 Regulatory liabilities:Regulatory excess deferred taxes (2)$190,274 $257,001 Regulatory cost of removal obligation641,019 607,032 Deferred gas costs6,879 9,142 APT annual adjustment mechanism99,393 73,119 Pension and postretirement benefit costs291,351 247,250 Other40,732 34,338 $1,269,648 $1,227,882 (1)Infrastructure mechanisms in Texas, Louisiana, and Tennessee allow for the deferral of all eligible expenses associated with capital expenditures incurred pursuant to these rules, including the recording of interest on the deferred expenses until the next rate proceeding (rate case or annual rate filing), at which time investment and costs would be recovered through base rates.(2)Regulatory excess deferred taxes represent changes in our net deferred tax liability related to our cost of service ratemaking due to the enactment of the Tax Cuts and Jobs Act of 2017 (the "TCJA"), a Kansas legislative change enacted in fiscal 2020, and a Louisiana legislative change enacted in fiscal 2025. See Notes 13 and 15 to