Xcel Energy 2009 Annual Report Download - page 149

A reconciliation of the beginning and ending aggregate carrying amounts of Xcel Energy’s AROs is shown in the table
below for the 12 months ended Dec. 31, 2009 and Dec. 31, 2008, respectively:
Beginning Revisions Ending
Balance Liabilities Liabilities to Prior Balance
Jan. 1, 2009 Recognized Settled Accretion Estimates Dec. 31, 2009
(Thousands of Dollars)
Electric plant
Steam production asbestos ......... $ 93,141 $— $— $ 5,987 $ (4,035) $ 95,093
Steam production ash containment . . . 18,643 — — 1,100 (2,191) 17,552
Steam production radiation sources . . . 337——24(185) 176
Nuclear production decommissioning . . 1,013,342 — — 61,469 (315,888) 758,923
Wind production .............. 7,447 — — 483 (179) 7,751
Electric transmission and distribution . . 313——19(305) 27
Natural gas plant
Gas transmission and distribution .... 880——56—936
Common and other property
Common general plant asbestos ..... 1,079 — — 59 (117) 1,021
Total liability ............... $1,135,182 $— $— $69,197 $(322,900) $881,479
The fair value of NSP-Minnesota assets legally restricted, for purposes of settling the nuclear ARO is $1.2 billion as of
Dec. 31, 2009, including external nuclear decommissioning investment funds and internally funded amounts.
Revisions were made for asbestos, ash-containment facilities, nuclear plants, wind turbines, radiation sources and electric
transmission and distribution asset retirement obligations due to revised estimates and end of life dates.
The revised end of life date for the Prairie Island nuclear plant approved by the MPUC in 2008 and effective Jan. 1,
2009 resulted in the nuclear production decommissioning ARO and related regulatory asset decreasing by
$315.9 million in the fourth quarter of 2009.
Beginning Revisions Ending
Balance Liabilities Liabilities to Prior Balance
Jan. 1, 2008 Recognized Settled Accretion Estimates Dec. 31, 2008
(Thousands of Dollars)
Electric plant
Steam production asbestos ......... $ 35,807 $21,721 $(500) $ 2,165 $ 33,948 $ 93,141
Steam production ash containment . . . 22,539 — — 1,275 (5,171) 18,643
Steam production radiation sources . . . — 335 — 2 — 337
Nuclear production decommissioning . . 1,209,746 — — 71,370 (267,774) 1,013,342
Wind production .............. — 7,408 — 39 — 7,447
Electric transmission and distribution . . 270——1627313
Natural gas plant
Gas transmission and distribution .... 45,505 — — 1,127 (45,752) 880
Common and other property
Common general plant asbestos ..... 1,277 — — 70 (268) 1,079
Total liability ............... $1,315,144 $29,464 $(500) $ 76,064 $ (284,990) $ 1,135,182
A new decommissioning study filed with the MPUC in 2008 proposed extension of the final removal date of the
Monticello and Prairie Island nuclear plants by 14 and 26 years, respectively, effective Jan. 1, 2009. As a result of the
studies for the Monticello and Prairie Island nuclear plants, the nuclear production decommissioning ARO and related
regulatory asset decreased by $128.5 million and $139.3 million, respectively, in the fourth quarter of 2008.
Indeterminate AROs — PSCo has underground natural gas storage facilities that have special closure requirements for
which the final removal date cannot be determined; therefore, an ARO has not been recorded.
Removal Costs — Xcel Energy accrues an obligation for plant removal costs for other generation, transmission and
distribution facilities of its utility subsidiaries. Generally, the accrual of future non-ARO removal obligations is not
required. However, long-standing ratemaking practices approved by applicable state and federal regulatory commissions
have allowed provisions for such costs in historical depreciation rates. These removal costs have accumulated over a
number of years based on varying rates as authorized by the appropriate regulatory entities. Given the long periods over
which the amounts were accrued and the changing of rates through time, the utility subsidiaries have estimated the
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