CenterPoint Energy 2015 Annual Report Download - page 93
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(3) Property, Plant and Equipment
(a) Property, Plant and Equipment
Property,plantandequipmentincludesthefollowing:
Weighted Average
Useful Lives
December 31,
(Years)
2015
2014
(in millions)
ElectricTransmission&Distribution 31
$ 10,142
$ 9,393
NaturalGasDistribution 32
5,762
5,235
EnergyServices 27
86
84
Otherproperty 24
660
646
Total
16,650
15,358
Accumulateddepreciationandamortization:
ElectricTransmission&Distribution
3,209
3,050
NaturalGasDistribution
1,575
1,493
EnergyServices
34
31
Otherproperty
295
282
Totalaccumulateddepreciationandamortization
5,113
4,856
Property,plantandequipment,net
$ 11,537
$ 10,502
(b) Depreciation and Amortization
Thefollowingtablepresentsdepreciationandamortizationexpensefor2015,2014and2013.
2015
2014
2013
(in millions)
Depreciationexpense $ 557
$ 521
$ 531
Amortizationexpense 413
492
423
Totaldepreciationandamortizationexpense $ 970
$ 1,013
$ 954
(c) Asset Retirement Obligations
Areconciliationofthechangesintheassetretirementobligation(ARO)liabilityisasfollows:
December 31,
2015
2014
(in millions)
Beginningbalance $ 176
$ 134
Accretionexpense 6
5
Revisionsinestimatesofcashflows 13
37
Endingbalance $ 195
$ 176
CenterPointEnergyrecordedAROsassociatedwiththeremovalofasbestosandasbestos-containingmaterialinitsbuildings,includingsubstationbuilding
structures. CenterPoint Energy also recorded AROs relating to gas pipelines abandoned in place, treated wood poles for electric distribution, distribution
transformerscontainingPCB (alsoknownas Polychlorinated Biphenyl),andunderground fuelstoragetanks.The estimates offutureliabilities were developed
usinghistoricalinformation,andwhereavailable,quotedpricesfromoutsidecontractors.
Theincreaseof$13millionintheAROfromtherevisionofestimatein2015isprimarilyattributabletoanincreaseinestimateddisposalcosts.Theincrease
of$37millionintheAROfromtherevisionofestimatein2014isprimarilyattributabletoareductionoftheestimatedservicelivesofsteelandplasticpipe.
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