Xcel Energy 2012 Annual Report Download - page 148

138
Asset Retirement Obligations
Recorded AROs — 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, NSP-Wisconsin, PSCo and SPS. NSP-Minnesota also recorded
asbestos recognition for its general office building. 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 dates on the ARO recognition for ash-containment
facilities at steam plants was the in-service dates of the 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. NSP-Minnesota and PSCo have also recorded AROs for the retirement and removal of assets at
certain wind production facilities for which the land is leased and removal is required by contract, with the origination dates being
the in-service date of the various facilities.
Xcel Energy has 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, which 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 numerous 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 the NSP-Minnesota nuclear generating plants,
Monticello and Prairie Island, originated with the in-service date of the facility. See Note 14 for further discussion of nuclear
obligations.
A reconciliation of Xcel Energy’s AROs is shown in the tables below for the years ended Dec. 31, 2012 and 2011:
Beginning Revisions Ending
Balance Liabilities Liabilities to Prior Balance
(Thousands of Dollars) Jan. 1, 2012 Recognized Settled Accretion Estimates Dec. 31, 2012
Electric plant
Steam and other production asbestos ......
$
54,342
$
1,962
$
(9,372)
$
3,417
$
(4,888)
$
45,461
Steam and other production ash containment 41,158 - - 1,609 18,843 61,610
Steam production radiation sources ....... 139 - - 10 - 149
Nuclear production decommissioning ..... 1,482,741 - - 75,301 (11,684) 1,546,358
Wind production ........................ 40,515 2,928 - 2,068 (9,647) 35,864
Electric transmission and distribution...... 30,704 - - 1,114 (3,788) 28,030
Natural gas plant
Gas transmission and distribution ......... 1,059 - - 68 - 1,127
Common and other property
Common general plant asbestos........... 1,135 - - 62 - 1,197
Total liability .........................
$
1,651,793
$
4,890
$
(9,372)
$
83,649
$
(11,164)
$
1,719,796
The aggregate fair value of NSP-Minnesota’s legally restricted assets, for purposes of funding future nuclear decommissioning,
was $1.5 billion as of Dec. 31, 2012, consisting of external investment funds.