regulatory asset definition
A regulatory asset is an asset that is owned by a utility, but is controlled or regulated by a government regulatory agency.In most instances, the agency grants the utility the privilege of deferring the costs or revenues associated with the asset to the companyâs balance sheet.y recording a regulatory asset on the company balance sheet, there is no opportunity for the asset to be overlooked or omitted from the overall accounting process. Watch the Did-You-Know slideshow.