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Asset Retirement Obligations
6 Months Ended
Jun. 30, 2017
Asset Retirement Obligation [Abstract]  
Asset Retirement Obligations
ASSET RETIREMENT OBLIGATIONS

FirstEnergy has recognized applicable legal obligations for AROs and their associated cost primarily for nuclear power plant decommissioning, reclamation of sludge disposal ponds, closure of coal ash disposal sites, underground and above-ground storage tanks, wastewater treatment lagoons and transformers containing PCBs. In addition, FirstEnergy has recognized conditional retirement obligations, primarily for asbestos remediation.

The ARO liabilities for FES primarily relate to the decommissioning of the Beaver Valley, Davis-Besse and Perry nuclear generating facilities, which aggregate to approximately $787 million and $713 million, as of June 30, 2017 and December 31, 2016, respectively. FES uses an expected cash flow approach to measure the fair value of their nuclear decommissioning AROs.

During the second quarter of 2017, in connection with NG purchasing the lessor equity interests of the remaining non-affiliated leasehold interests from an owner participant in the Beaver Valley Unit 2 sale leaseback and the expiration of the leases, OE and TE transferred an ARO of $49 million and NDT assets associated with their leasehold interests to NG, with the difference of $73 million credited to the common stock of FES. As of June 30, 2017, NG owns 100% of Beaver Valley Unit 2.

During the second quarter of 2016, in connection with NG purchasing the lessor equity interests of the remaining non-affiliated leasehold interests from an owner participant in the Perry Unit 1 sale leaseback, OE transferred the ARO and related NDT assets associated with the leasehold interest to NG, with the difference of $28 million credited to the common stock of FES.