
For regulated utilities, legacy cost becomes shareholder exposure when engineering obligation, counterparty recovery, regulatory eligibility, customer recovery and timing stop lining up. The source case separates a $420 million coal-combustion-residual obligation, a $350-400 million repair range and other environmental costs that follow different recovery paths. The board question is what remains at risk after legal, regulatory and cash-timing decisions.
The same obligation can move through engineering, litigation, ratemaking and cash collection on different clocks.
$420 million in coal-combustion-residual obligations were recorded, while scope and federal requirements remained subject to change.
A $350-400 million repair range had an authorized deferral path, while prudence and final ratemaking treatment remained open.
A $1.141 million replacement-energy cost was disallowed after the utility failed the applicable prudence burden.
Coal-unit retirements extend through 2032, while environmental compliance milestones and recovery decisions run on separate timelines.
Track each material obligation from estimate to payer, regulatory decision, cash timing and residual shareholder exposure in one governed record.