Otter Tail Corp [OTTR] Filings

10-Q 1 ottr-20220630.htm 10-Q ottr-20220630

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended June 30, 2022 or

☐ Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Commission File Number 0-53713

OTTER TAIL CORPORATION

(Exact name of registrant as specified in its charter)


Minnesota (State or other jurisdiction of incorporation or organization)			27-0383995 (I.R.S. Employer Identification No.)

215 South Cascade Street, Box 496, Fergus Falls, Minnesota (Address of principal executive offices)			56538-0496 (Zip Code)

Registrant's telephone number, including area code: 866-410-8780

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Shares, par value $5.00 per share	OTTR	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

Large Accelerated Filer ☑

Accelerated Filer ☐

Non-Accelerated Filer ☐

Smaller Reporting Company ☐

Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

Indicate the number of shares outstanding of each of the registrant's classes of common stock, as of the latest practicable date:

41,630,799 Common Shares ($5 par value) as of July 27, 2022.

Table of Contents


TABLE OF CONTENTS


	Description	Page

	Definitions	2
	Forward Looking Information	2
PART I
ITEM 1.	Financial Statements:
	Consolidated Balance Sheets	3
	Consolidated Statements of Income	4
	Consolidated Statements of Comprehensive Income	5
	Consolidated Statements of Shareholders’ Equity	6
	Consolidated Statements of Cash Flows	7
	Condensed Notes to Consolidated Financial Statements	8
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	31
ITEM 4.	Controls and Procedures	31
PART II
ITEM 1.	Legal Proceedings	31
ITEM 1A.	Risk Factors	31

ITEM 6.	Exhibits	31
Signatures		32

Table of Contents


DEFINITIONS

The following abbreviations or acronyms are used in the text.

AGI

Advanced Grid Infrastructure Rider

OTC

Otter Tail Corporation

ARP

Alternative Revenue Program

OTP

Otter Tail Power Company

BTD

BTD Manufacturing, Inc.

NDDEQ

North Dakota Department of Environmental Quality

CIP

Conservation Improvement Program

PIR

Phase-In Rider

EPA

Environmental Protection Agency

PSLRA

Private Securities Litigation Reform Act of 1995

ESSRP

Executive Survivor and Supplemental Retirement Plan

PTC

Production Tax Credits

FERC

Federal Energy Regulatory Commission

PVC

Polyvinyl chloride

GCR

Generation Cost Recovery Rider

RHR

Regional Haze Rule

ISO

Independent System Operator

ROE

Return on equity

IRP

Integrated Resource Plan

RRR

Renewable Resource Rider

kwh

kilowatt-hour

SEC

Securities and Exchange Commission

Merricourt

Merricourt Wind Energy Center

T.O. Plastics

T.O. Plastics, Inc.

MISO

Midcontinent Independent System Operator, Inc.

TCR

Transmission Cost Recovery Rider

MPUC

Minnesota Public Utilities Commission


FORWARD-LOOKING INFORMATION

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "PSLRA"). When used in this Form 10-Q and in future filings by Otter Tail Corporation (the "Company") with the Securities and Exchange Commission (SEC), in the Company’s press releases and in oral statements, words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” "future," "goal," “intend,” "likely," “may,” “outlook,” “plan,” “possible,” “potential,” "probable," "projected," “should,” "target," “will,” “would” or similar expressions are intended to identify forward-looking statements within the meaning of the PSLRA. Such statements are based on current expectations and assumptions and entail various risks and uncertainties that could cause actual results to differ materially from those expressed in such forward-looking statements. The Company’s risks and uncertainties include, among other things, uncertainty of the impact and duration of the COVID-19 pandemic, uncertainty of future investments and capital expenditures, rate base levels and rate base growth, long-term investment risk, seasonal weather patterns and extreme weather events, counterparty credit risk, future business volumes with key customers, reductions in our credit ratings, our ability to access capital markets on favorable terms, assumptions and costs relating to funding our employee benefit plans, our subsidiaries’ ability to make dividend payments, cyber security threats or data breaches, the impact of government legislation and regulation including foreign trade policy and environmental laws and regulations, the impact of climate change including compliance with legislative and regulatory changes to address climate change, operational and economic risks associated with our electric generating and manufacturing facilities, risks associated with energy markets, the availability and pricing of resource materials, inflation rates, attracting and maintaining a qualified and stable workforce, expectations regarding regulatory proceedings, and changing macroeconomic and industry conditions. These and other risks and uncertainties are more fully described in our filings with the SEC, including our most recently filed Annual Report on Form 10-K. Forward-looking statements speak only as of the date they are made, and we expressly disclaim any obligation to update any forward-looking information.

PART I. FINANCIAL INFORMATION


ITEM 1.			FINANCIAL STATEMENTS

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OTTER TAIL CORPORATION

CONSOLIDATED BALANCE SHEETS (unaudited)


(in thousands, except share data)	June 30, 2022		December 31, 2021

Assets
Current Assets
Cash and Cash Equivalents	$	61,989	$	1,537
Receivables, net of allowance for credit losses	225,838		174,953
Inventories	146,964		148,490
Regulatory Assets	20,675		27,342
Other Current Assets	15,923		17,032
Total Current Assets	471,389		369,354
Noncurrent Assets
Investments	53,555		56,690
Property, Plant and Equipment, net of accumulated depreciation	2,149,919		2,124,605
Regulatory Assets	121,954		125,508
Intangible Assets, net of accumulated amortization	8,493		9,044
Goodwill	37,572		37,572
Other Noncurrent Assets	32,618		32,057
Total Noncurrent Assets	2,404,111		2,385,476
Total Assets	$	2,875,500	$	2,754,830

Liabilities and Shareholders' Equity
Current Liabilities
Short-Term Debt	$	—	$	91,163
Current Maturities of Long-Term Debt	29,996		29,983
Accounts Payable	133,287		135,089
Accrued Salaries and Wages	24,803		31,704
Accrued Taxes	22,037		19,245
Regulatory Liabilities	19,458		24,844
Other Current Liabilities	58,572		55,671
Total Current Liabilities	288,153		387,699
Noncurrent Liabilities
Pension Benefit Liability	51,783		73,973
Other Postretirement Benefits Liability	66,665		66,481
Regulatory Liabilities	235,456		234,430
Deferred Income Taxes	213,919		188,268
Deferred Tax Credits	16,288		16,661
Other Noncurrent Liabilities	62,994		62,527
Total Noncurrent Liabilities	647,105		642,340
Commitments and Contingencies (Note 9)
Capitalization
Long-Term Debt, net of current maturities	823,699		734,014
Shareholders' Equity
Common Shares: 50,000,000 shares authorized, $5 par value; 41,630,799 and 41,551,524 outstanding at June 30, 2022 and December 31, 2021	208,154		207,758
Additional Paid-In Capital	421,951		419,760
Retained Earnings	493,351		369,783
Accumulated Other Comprehensive Loss	(6,913)		(6,524)
Total Shareholders' Equity	1,116,543		990,777
Total Capitalization	1,940,242		1,724,791
Total Liabilities and Shareholders' Equity	$	2,875,500	$	2,754,830

See accompanying notes to consolidated financial statements.

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OTTER TAIL CORPORATION

CONSOLIDATED STATEMENTS OF INCOME (unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands, except per-share amounts)	2022		2021		2022		2021

Operating Revenues
Electric	$	130,949	$	106,155	$	261,365	$	229,855
Product Sales	269,091		179,453		513,579		317,463
Total Operating Revenues	400,040		285,608		774,944		547,318
Operating Expenses
Electric Production Fuel	14,714		12,164		29,567		26,878
Electric Purchased Power	24,162		11,135		44,691		30,395
Electric Operating and Maintenance Expenses	42,379		36,729		86,659		78,150
Cost of Products Sold (excluding depreciation)	152,466		122,578		304,225		224,555
Other Nonelectric Expenses	17,252		15,669		34,457		29,362
Depreciation and Amortization	23,566		23,169		47,113		45,295
Electric Property Taxes	4,435		4,342		8,866		8,662
Total Operating Expenses	278,974		225,786		555,578		443,297
Operating Income	121,066		59,822		219,366		104,021
Other Income and Expense
Interest Charges	8,991		9,555		17,939		18,953
Nonservice Cost Components of Postretirement Benefits	(751)		624		(772)		1,006
Other Income (Expense), net	(889)		734		(629)		1,892
Income Before Income Taxes	111,937		50,377		201,570		85,954
Income Tax Expense	26,000		8,308		43,630		13,556
Net Income	$	85,937	$	42,069	$	157,940	$	72,398

Weighted-Average Common Shares Outstanding:
Basic	41,597		41,500		41,573		41,478
Diluted	41,944		41,818		41,907		41,759
Earnings Per Share:
Basic	$	2.07	$	1.01	$	3.80	$	1.75
Diluted	$	2.05	$	1.01	$	3.77	$	1.73

See accompanying notes to consolidated financial statements.

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OTTER TAIL CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2022		2021		2022		2021

Net Income	$	85,937	$	42,069	$	157,940	$	72,398
Other Comprehensive Income (Loss):
Unrealized Loss on Available-for-Sale Securities, net of tax benefit of $20, $10, $81, and $20	(74)		(40)		(305)		(75)
Pension and Other Postretirement Benefits, net of tax benefit (expense) of $(37), $(50), $29, and $(103)	106		141		(84)		291
Total Other Comprehensive Income (Loss)	32		101		(389)		216
Total Comprehensive Income	$	85,969	$	42,170	$	157,551	$	72,614

See accompanying notes to consolidated financial statements.

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OTTER TAIL CORPORATION

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (unaudited)


(in thousands, except common shares outstanding)	Common Shares Outstanding	Par Value, Common Shares		Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Total Shareholders' Equity

Balance, March 31, 2022	41,605,884	$	208,029	$	421,449	$	424,605	$	(6,945)	$	1,047,138

Stock Issued Under Share-Based Compensation Plans, net of shares withheld for employee taxes	24,915	125		(105)		—		—		20

Net Income	—	—		—		85,937		—		85,937
Other Comprehensive Income	—	—		—		—		32		32
Stock Compensation Expense	—	—		607		—		—		607
Common Dividends ($0.4125 per share)	—	—		—		(17,191)		—		(17,191)
Balance, June 30, 2022	41,630,799	$	208,154	$	421,951	$	493,351	$	(6,913)	$	1,116,543

Balance, March 31, 2021	41,510,455	$	207,552	$	416,707	$	271,999	$	(8,392)	$	887,866

Stock Issued Under Share-Based Compensation Plans, net of shares withheld for employee taxes	28,254	142		(123)		—		—		19
Stock Issued Under Dividend Reinvestment and Stock Purchase Plans, net of expenses and repurchased shares	—	—		(41)		—		—		(41)
Net Income	—	—		—		42,069		—		42,069
Other Comprehensive Income	—	—		—		—		101		101
Stock Compensation Expense	—	—		1,327		—		—		1,327
Common Dividends ($0.39 per share)	—	—		—		(16,218)		—		(16,218)
Balance, June 30, 2021	41,538,709	$	207,694	$	417,870	$	297,850	$	(8,291)	$	915,123

Balance, December 31, 2021	41,551,524	$	207,758	$	419,760	$	369,783	$	(6,524)	$	990,777

Stock Issued Under Share-Based Compensation Plans, net of shares withheld for employee taxes	79,275	396		(3,320)		—		—		(2,924)

Net Income	—	—		—		157,940		—		157,940
Other Comprehensive Loss	—	—		—		—		(389)		(389)
Stock Compensation Expense	—	—		5,511		—		—		5,511
Common Dividends ($0.825 per share)	—	—		—		(34,372)		—		(34,372)
Balance, June 30, 2022	41,630,799	$	208,154	$	421,951	$	493,351	$	(6,913)	$	1,116,543

Balance, December 31, 2020	41,469,879	$	207,349	$	414,246	$	257,878	$	(8,507)	$	870,966

Stock Issued Under Share-Based Compensation Plans, net of shares withheld for employee taxes	68,830	345		(1,833)		—		—		(1,488)
Stock Issued Under Dividend Reinvestment and Stock Purchase Plans, net of expenses and repurchased shares	—	—		(67)		—		—		(67)
Net Income	—	—		—		72,398		—		72,398
Other Comprehensive Income	—	—		—		—		216		216
Stock Compensation Expense	—	—		5,524		—		—		5,524
Common Dividends ($0.78 per share)	—	—		—		(32,426)		—		(32,426)
Balance, June 30, 2021	41,538,709	$	207,694	$	417,870	$	297,850	$	(8,291)	$	915,123

See accompanying notes to consolidated financial statements.

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OTTER TAIL CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)


	Six Months Ended June 30,
(in thousands)	2022		2021

Operating Activities
Net Income	$	157,940	$	72,398
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Depreciation and Amortization	47,113		45,295
Deferred Tax Credits	(373)		(372)
Deferred Income Taxes	25,160		11,327
Discretionary Contribution to Pension Plan	(20,000)		(10,000)
Allowance for Equity Funds Used During Construction	(617)		(172)
Stock Compensation Expense	5,511		5,524
Other, Net	4,893		(2,864)
Changes in Operating Assets and Liabilities:
Receivables	(50,885)		(49,465)
Inventories	2,889		(10,859)
Regulatory Assets	5,604		5,753
Other Assets	3,240		(12,920)
Accounts Payable	1,933		16,905
Accrued and Other Liabilities	(3,394)		(468)
Regulatory Liabilities	(3,859)		(4,811)
Pension and Other Postretirement Benefits	475		3,303
Net Cash Provided by Operating Activities	175,630		68,574
Investing Activities
Capital Expenditures	(70,791)		(76,891)
Proceeds from Disposal of Noncurrent Assets	2,840		4,562
Cash Used for Investments and Other Assets	(5,944)		(4,074)
Net Cash Used in Investing Activities	(73,895)		(76,403)
Financing Activities
Net Borrowings (Repayments) on Short-Term Debt	(91,163)		46,960

Proceeds from Issuance of Long-Term Debt	90,000		—
Payments for Retirement of Long-Term Debt	—		(169)
Dividends Paid	(34,372)		(32,426)
Payments for Shares Withheld for Employee Tax Obligations	(2,942)		(1,507)
Other, net	(2,806)		(4,712)
Net Cash (Used in) Provided by Financing Activities	(41,283)		8,146
Net Change in Cash and Cash Equivalents	60,452		317
Cash and Cash Equivalents at Beginning of Period	1,537		1,163
Cash and Cash Equivalents at End of Period	$	61,989	$	1,480





Supplemental Disclosure of Noncash Investing Activities
Accrued Property, Plant and Equipment Additions	$	11,116	$	24,390

See accompanying notes to consolidated financial statements

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OTTER TAIL CORPORATION

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

1. Summary of Significant Accounting Policies

Overview

Otter Tail Corporation (OTC) and its subsidiaries (collectively, the "Company", "us", "our" or "we") form a diverse, multi-platform business consisting of a vertically integrated, regulated utility with generation, transmission and distribution facilities complemented by manufacturing businesses providing metal fabrication for custom machine parts and metal components, manufacturing of extruded and thermoformed plastic products, and manufacturing of polyvinyl chloride (PVC) pipe products. We classify our business into three segments: Electric, Manufacturing and Plastics.

Basis of Presentation

The unaudited consolidated financial statements included herein have been prepared pursuant to the rules and regulations of the SEC for interim reporting. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles. In the opinion of management, we have included all adjustments, including normal recurring accruals, necessary for a fair presentation of the consolidated financial statements for the periods presented. The consolidated financial statements and condensed notes thereto should be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

Because of the seasonality of our businesses and other factors, the earnings for the three and six months ended June 30, 2022 should not be taken as an indication of earnings for all or any part of the balance of the current year or as an indication of earnings for future years.

Use of Estimates

We use estimates based on the best information available in recording transactions and balances resulting from business operations. As better information becomes available or actual amounts are known, the recorded estimates are revised. Consequently, operating results can be affected by revisions to prior accounting estimates.

Reclassifications

Certain reclassifications of amounts previously reported have been made to the accompanying consolidated statements of shareholders' equity and consolidated statements of cash flows to maintain consistency and comparability between periods presented. The reclassifications had no impact on previously reported shareholders' equity, net cash provided by operating activities, net cash used in investing activities, net cash (used in) provided by financing activities, or cash and cash equivalents.

2. Segment Information

We classify our business into three segments, Electric, Manufacturing and Plastics, consistent with our business strategy, organizational structure and our internal reporting and review processes used by our chief operating decision maker to make decisions regarding allocation of resources, to assess operating performance and to make strategic decisions.

Certain assets and costs are not allocated to our operating segments. Corporate operating costs include items such as corporate staff and overhead costs, the results of our captive insurance company and other items excluded from the measurement of operating segment performance. Corporate assets consist primarily of cash, prepaid expenses, investments and fixed assets. Corporate is not an operating segment, rather it is added to operating segment totals to reconcile to consolidated amounts.

Information for each segment and our unallocated corporate costs for the three and six months ended June 30, 2022 and 2021 are as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2022		2021		2022		2021

Operating Revenue
Electric	$	130,949	$	106,155	$	261,365	$	229,855
Manufacturing	103,196		84,284		208,154		160,107
Plastics	165,895		95,169		305,425		157,356
Total	$	400,040	$	285,608	$	774,944	$	547,318
Net Income (Loss)
Electric	$	18,858	$	15,433	$	38,091	$	33,019
Manufacturing	7,555		5,705		11,639		11,089
Plastics	63,959		22,544		114,806		31,692
Corporate	(4,435)		(1,613)		(6,596)		(3,402)
Total	$	85,937	$	42,069	$	157,940	$	72,398

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The following provides the identifiable assets by segment and corporate assets as of June 30, 2022 and December 31, 2021:


(in thousands)	June 30, 2022		December 31, 2021

Identifiable Assets
Electric	$	2,309,245	$	2,283,776
Manufacturing	267,050		251,044
Plastics	201,724		162,565
Corporate	97,481		57,445
Total	$	2,875,500	$	2,754,830

3. Revenue

Presented below are our operating revenues to external customers, in total and by amounts arising from contracts with customers and alternative revenue program (ARP) arrangements, disaggregated by revenue source and segment for the three and six months ended June 30, 2022 and 2021:


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2022		2021		2022		2021

Operating Revenues
Electric Segment
Retail: Residential	$	33,011	$	28,709	$	73,743	$	66,176
Retail: Commercial and Industrial	78,521		58,390		149,527		124,811
Retail: Other	2,071		1,888		3,972		3,706
Total Retail	113,603		88,987		227,242		194,693
Transmission	11,697		11,840		24,254		23,785
Wholesale	3,537		3,260		6,000		7,767
Other	2,112		2,068		3,869		3,610
Total Electric Segment	130,949		106,155		261,365		229,855
Manufacturing Segment
Metal Parts and Tooling	88,296		71,013		177,869		133,686
Plastic Products and Tooling	11,416		10,131		23,860		20,426
Scrap Metal Sales	3,484		3,140		6,425		5,995
Total Manufacturing Segment	103,196		84,284		208,154		160,107
Plastics Segment
PVC Pipe	165,895		95,169		305,425		157,356
Total Operating Revenue	400,040		285,608		774,944		547,318
Less: Non-contract Revenues Included Above
Electric Segment - ARP Revenues	(4,928)		(1,782)		(7,388)		(2,757)
Total Operating Revenues from Contracts with Customers	$	404,968	$	287,390	$	782,332	$	550,075

4. Select Balance Sheet Information

Receivables and Allowance for Credit Losses

Receivables as of June 30, 2022 and December 31, 2021 are as follows:


(in thousands)	June 30, 2022		December 31, 2021

Receivables
Trade	$	200,682	$	142,297
Other	7,143		10,591
Unbilled Receivables	19,770		23,901
Total Receivables	227,595		176,789
Less: Allowance for Credit Losses	(1,757)		(1,836)
Receivables, net of allowance for credit losses	$	225,838	$	174,953

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The following is a summary of activity in the allowance for credit losses for the six months ended June 30, 2022 and 2021:


(in thousands)	2022		2021

Beginning Balance, January 1	$	1,836	$	3,215
Additions Charged to Expense	382		284
Reductions for Amounts Written Off, Net of Recoveries	(461)		(773)
Ending Balance, June 30	$	1,757	$	2,726

Inventories

Inventories consist of the following as of June 30, 2022 and December 31, 2021:


(in thousands)	June 30, 2022		December 31, 2021

Raw Material, Fuel and Supplies	$	79,735	$	72,882
Work in Process	34,700		35,705
Finished Goods	32,529		39,903
Total Inventories	$	146,964	$	148,490

Investments

The following is a summary of our investments as of June 30, 2022 and December 31, 2021:


(in thousands)	June 30, 2022		December 31, 2021

Corporate-Owned Life Insurance Policies	$	37,502	$	41,078
Debt Securities	8,351		9,202
Money Market Funds	2,122		949
Mutual Funds	5,546		5,432
Other Investments	34		29
Total Investments	$	53,555	$	56,690

The amount of unrealized gains and losses on debt securities as of June 30, 2022 and December 31, 2021 was not material and no unrealized losses were deemed to be other-than-temporary. In addition, the amount of unrealized gains and losses on marketable equity securities still held as of June 30, 2022 and December 31, 2021 was not material.

Property, Plant and Equipment

Major classes of property, plant and equipment as of June 30, 2022 and December 31, 2021 include:


(in thousands)	June 30, 2022		December 31, 2021

Electric Plant
Electric Plant in Service	$	2,785,850	$	2,758,445
Construction Work in Progress	96,763		74,926
Total Gross Electric Plant	2,882,613		2,833,371
Less Accumulated Depreciation and Amortization	843,296		817,302
Net Electric Plant	2,039,317		2,016,069
Nonelectric Property, Plant and Equipment
Nonelectric Property, Plant and Equipment in Service	279,123		273,950
Construction Work in Progress	18,483		16,611
Total Gross Nonelectric Property, Plant and Equipment	297,606		290,561
Less Accumulated Depreciation and Amortization	187,004		182,025
Net Nonelectric Property, Plant and Equipment	110,602		108,536
Net Property, Plant and Equipment	$	2,149,919	$	2,124,605

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5. Regulatory Matters

Regulatory Assets and Liabilities

The following presents our current and long-term regulatory assets and liabilities as of June 30, 2022 and December 31, 2021 and the period we expect to recover or refund such amounts:


	Period of	June 30, 2022				December 31, 2021
(in thousands)	Recovery/Refund	Current		Long-Term		Current		Long Term

Regulatory Assets
Pension and Other Postretirement Benefit Plans1	Various	$	7,791	$	112,011	$	7,791	$	114,961
Alternative Revenue Program Riders2	Up to 2 years	4,695		5,370		11,889		5,564
Asset Retirement Obligations1	Asset lives	—		1,238		—		742

ISO Cost Recovery Trackers1	Up to 2 years	440		726		—		1,342
Unrecovered Project Costs1	Up to 5 years	356		1,136		2,136		1,455
Deferred Rate Case Expenses1	Various	477		943		607		1,131
Debt Reacquisition Premiums1	Up to 11 years	35		228		100		240
Fuel Clause Adjustments1	Up to 1 year	6,797		—		4,819		—
Other1	Various	84		302		—		73
Total Regulatory Assets		$	20,675	$	121,954	$	27,342	$