CenterPoint Energy 2015 Annual Report Download - page 93

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(3) Property, Plant and Equipment
(a) Property, Plant and Equipment
Property,plantandequipmentincludesthefollowing:
Weighted Average
Useful Lives
December 31,
(Years)
2015
2014
(in millions)
ElectricTransmission&Distribution 31
$ 10,142
$ 9,393
NaturalGasDistribution 32
5,762
5,235
EnergyServices 27
86
84
Otherproperty 24
660
646
Total
16,650
15,358
Accumulateddepreciationandamortization:
ElectricTransmission&Distribution
3,209
3,050
NaturalGasDistribution
1,575
1,493
EnergyServices
34
31
Otherproperty
295
282
Totalaccumulateddepreciationandamortization
5,113
4,856
Property,plantandequipment,net
$ 11,537
$ 10,502
(b) Depreciation and Amortization
Thefollowingtablepresentsdepreciationandamortizationexpensefor2015,2014and2013.
2015
2014
2013
(in millions)
Depreciationexpense $ 557
$ 521
$ 531
Amortizationexpense 413
492
423
Totaldepreciationandamortizationexpense $ 970
$ 1,013
$ 954
(c) Asset Retirement Obligations
Areconciliationofthechangesintheassetretirementobligation(ARO)liabilityisasfollows:
December 31,
2015
2014
(in millions)
Beginningbalance $ 176
$ 134
Accretionexpense 6
5
Revisionsinestimatesofcashflows 13
37
Endingbalance $ 195
$ 176
CenterPointEnergyrecordedAROsassociatedwiththeremovalofasbestosandasbestos-containingmaterialinitsbuildings,includingsubstationbuilding
structures. CenterPoint Energy also recorded AROs relating to gas pipelines abandoned in place, treated wood poles for electric distribution, distribution
transformerscontainingPCB (alsoknownas Polychlorinated Biphenyl),andunderground fuelstoragetanks.The estimates offutureliabilities were developed
usinghistoricalinformation,andwhereavailable,quotedpricesfromoutsidecontractors.
Theincreaseof$13millionintheAROfromtherevisionofestimatein2015isprimarilyattributabletoanincreaseinestimateddisposalcosts.Theincrease
of$37millionintheAROfromtherevisionofestimatein2014isprimarilyattributabletoareductionoftheestimatedservicelivesofsteelandplasticpipe.
87