Xcel Energy 2010 Annual Report Download - page 148

Download and view the complete annual report

Please find page 148 of the 2010 Xcel Energy annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 172

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172

138
Recorded ARO — AROs have been recorded for plant related to nuclear production, steam production, wind production, electric
transmission and distribution, natural gas transmission and distribution and office buildings. The steam production obligation
includes asbestos, ash-containment facilities, radiation sources and decommissioning. The asbestos recognition associated with
the steam production includes certain plants at NSP-Minnesota, PSCo and SPS. NSP-Minnesota also recorded asbestos
recognition for its general office building. Generally, this asbestos abatement removal obligation originated in 1973 with the
CAA, which applied to the demolition of buildings or removal of equipment containing asbestos that can become airborne on
removal. AROs also have been recorded for NSP-Minnesota, PSCo and SPS steam production related to ash-containment
facilities such as bottom ash ponds, evaporation ponds and solid waste landfills. The origination date on the ARO recognition for
ash-containment facilities at steam plants was the in-service date of various facilities. Additional AROs have been recorded for
NSP-Minnesota and PSCo steam production plant related to radiation sources in equipment used to monitor the flow of coal, lime
and other materials through feeders.
Xcel Energy recognized an ARO for the retirement costs of natural gas mains at NSP-Minnesota, NSP-Wisconsin and PSCo. In
addition, an ARO was recognized for the removal of electric transmission and distribution equipment at NSP-Minnesota, NSP-
Wisconsin, PSCo and SPS. The electric transmission and distribution ARO consists of many small potential obligations
associated with PCBs, mineral oil, storage tanks, treated poles, lithium batteries, mercury and street lighting lamps. These electric
and natural gas assets have many in-service dates for which it is difficult to assign the obligation to a particular year. Therefore,
the obligation was measured using an average service life.
For the nuclear assets, the ARO associated with the decommissioning of two NSP-Minnesota nuclear generating plants,
Monticello and Prairie Island, originates with the in-service date of the facility. See Note 15 to the consolidated financial
statements for further discussion of nuclear obligations.
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, 2010 and Dec. 31, 2009, respectively:
(Thousands of Dollars)
Beginning
Balance
Jan. 1, 2010 Liabilities
Recognized Liabilities
Settled Accretion
Revisions
to Prior
Estimates
Ending
Balance
Dec. 31, 2010
Electric plant
Steam production asbestos ............ $ 95,093 $ 3,771 $ (2,330) $ 6,037 $ (8,942) $ 93,629
Steam production ash containment ..... 17,552 32
—
903 1,201 19,688
Steam production radiation sources .... 176
—
—
12 (22) 166
N
uclear production decommissioning .. 758,923
—
—
50,551
—
809,474
Wind production ..................... 7,751 25,671
—
592 4,539 38,553
Electric transmission and distribution .. 27
—
—
12 5,688 5,727
Natural gas plant
Gas transmission and distribution ...... 936
—
—
60
—
996
Common and other property
Common general plant asbestos ....... 1,021
—
—
56
—
1,077
Total liability ...................... $ 881,479 $ 29,474 $ (2,330) $ 58,223 $ 2,464 $ 969,310
The fair value of NSP-Minnesota assets legally restricted, for purposes of settling the nuclear ARO, is $1.4 billion as of Dec. 31,
2010, including external nuclear decommissioning investment funds and internally funded amounts.