APS 2013 Annual Report Download - page 134

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Table of Contents
PINNACLE WEST CAPITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
reasonably estimate the fair value of the asset retirement obligation related to such distribution and transmission assets.
Additionally, APS has aquifer protection permits for some of its generation sites that require the closure of certain facilities at those sites.
The following schedule shows the change in our asset retirement obligations for 2013 and 2012 (dollars in millions):
2013 2012
Asset retirement obligations at the beginning of year $ 357 $ 280
Changes attributable to:
Accretion expense 24 19
Settlements (12) —
Assumed SCE’s obligation 34 —
Estimated cash flow revisions (56)58
Asset retirement obligations at the end of year $347 $ 357
Decommissioning activities for Four Corners Units 1-3 will begin in January 2014; thus, $33 million of the total asset retirement obligation of $347
million at December 31, 2013, is classified as a current liability on the balance sheet.
In accordance with regulatory accounting, APS accrues removal costs for its regulated utility assets, even if there is no legal obligation for removal.
See detail of regulatory liabilities in Note 3.
13. Selected Quarterly Financial Data (Unaudited)
Consolidated quarterly financial information for 2013 and 2012 is provided in the tables below (dollars in thousands, except per share amounts).
Weather conditions cause significant seasonal fluctuations in our revenues; therefore, results for interim periods do not necessarily represent results expected
for the year.
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