Xcel Energy 2010 Annual Report Download - page 149

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139
In 2010 and 2009, revisions were made for asbestos, ash-containment facilities, wind turbines, radiation sources and electric
transmission and distribution asset retirement obligations due to revised estimates and end of life dates. In 2009, revisions were
made for nuclear plants.
(Thousands of Dollars)
Beginning
Balance
Jan. 1, 2009 Liabilities
Recognized Liabilities
Settled Accretion
Revisions
to Prior
Estimates
Ending
Balance
Dec. 31, 2009
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
N
uclear 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 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 2009.
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 records a regulatory liability 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 amount of removal costs accumulated through
historic depreciation expense based on current factors used in the existing depreciation rates.
The accumulated balances by entity are as follows at Dec. 31:
(Millions of Dollars) 2010 2009
N
SP-Minnesota .................................................................................. $ 400 $ 372
N
SP-Wisconsin .................................................................................. 107 102
PSCo ............................................................................................ 385 375
SPS ............................................................................................. 88 93
Total Xcel Energy .............................................................................. $ 980 $ 942
Nuclear Insurance
NSP-Minnesota’s public liability for claims resulting from any nuclear incident is limited to $12.6 billion under the Price-
Anderson amendment to the Atomic Energy Act. NSP-Minnesota has secured $375 million of coverage for its public liability
exposure with a pool of insurance companies. The remaining $12.2 billion of exposure is funded by the Secondary Financial
Protection Program, available from assessments by the federal government in case of a nuclear accident. NSP-Minnesota is
subject to assessments of up to $117.5 million per reactor per accident for each of its three licensed reactors, to be applied for
public liability arising from a nuclear incident at any licensed nuclear facility in the United States. The maximum funding
requirement is $17.5 million per reactor during any one year. These maximum assessment amounts are both subject to inflation
adjustment by the NRC and state premium taxes. The NRC’s last adjustment was effective October 2008. The next adjustment is
due on or before October 2013.