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Asset Retirement Obilgations | 12 Months Ended
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Dec. 31, 2013
Asset Retirement Obligation [Abstract] |
Asset Retirement Obligations | ASSET RETIREMENT OBLIGATIONS AROs consist of the following (in millions):
| As of December 31,
| 2013 |  | 2012
Trojan decommissioning activities | $ | 41 |  |  | $ | 42 |
Utility plant | 49 |  |  | 39 |
Non-utility property | 10 |  |  | 13 |
Asset retirement obligations | $ | 100 |  |  | $ | 94 |
Trojan decommissioning activities represents the present value of future decommissioning expenditures for the plant, which ceased operation in 1993. The remaining decommissioning activities primarily consist of the long-term operation and decommissioning of the ISFSI, an interim dry storage facility that is licensed by the Nuclear Regulatory Commission. The ISFSI is to house the spent nuclear fuel at the former plant site until an off-site storage facility is available. Decommissioning of the ISFSI and final site restoration activities will begin once shipment of all the spent fuel to a United States Department of Energy (USDOE) facility is complete, which is not expected prior to 2033. In 2004, the co-owners of Trojan (PGE, Eugene Water & Electric Board, and PacifiCorp, collectively referred to as Plaintiffs) filed a complaint against the USDOE for failure to accept spent nuclear fuel by January 31, 1998. PGE had contracted with the USDOE for the permanent disposal of spent nuclear fuel in order to allow the final decommissioning of Trojan. The Plaintiffs paid for permanent disposal services during the period of plant operation and have met all other conditions precedent. The Plaintiffs were seeking approximately $112 million in damages incurred through 2009. A trial before the U.S. Court of Federal Claims concluded in early 2012, and on November 30, 2012, the U.S. Court of Federal Claims issued a judgment awarding certain damages to the Plaintiffs. The judgment did not state the precise amount of the damages award, but directed the parties to consult and propose a final amount for the Plaintiffs’ recovery that was based on certain adjustments specified in the court’s ruling. In July 2013, the parties reached a settlement wherein the Trojan co-owners were to receive approximately $70 million for the period through 2009. PGE’s share, approximately $44 million, was received during the third quarter 2013 and deposited into the Nuclear decommissioning trust. The proceeds received related to this legal matter will flow to the benefit of customers in future regulatory proceedings to offset amounts previously collected from customers in relation to Trojan decommissioning activities. The Trojan ARO is not impacted by the outcome of this case as such recovery is for past decommissioning costs and the ARO reflects only future decommissioning expenditures. The settlement agreement also provided for a process to submit claims for allowable costs for the period 2010 through 2013. In January 2014, the settlement agreement was extended to cover costs through 2016. The Company will seek recovery of any costs for subsequent periods in future extensions of the agreement. In October 2013, the Trojan co-owners submitted a claim for $9 million related to 2010 through 2012 costs, with PGE’s share approximating $6 million. The Company expects to receive payment for the submitted claim in mid-2014. Utility plant represents AROs that have been recognized for the Company’s thermal and wind generation sites, distribution and transmission assets where disposal is governed by environmental regulation. During 2011, an updated decommissioning study for PGE’s Boardman coal-fired generating plant (Boardman) was completed, which included the assumption that Boardman’s coal-fired operations cease in 2020 rather than 2040. As a result of the study, PGE increased its ARO related to Boardman by approximately $20 million, with a corresponding increase in the cost basis of the plant, included in Electric utility plant, net on the consolidated balance sheet. Such transaction is non-cash and is excluded from investing activities in the consolidated statement cash flows for the year ended December 31, 2011. Furthermore, in December 2013, PGE increased the ARO by $4 million related to the acquisition of an additional 15% interest in Boardman. Non-utility property primarily represents AROs which have been recognized for portions of unregulated properties leased to third parties. The following is a summary of the changes in the Company’s AROs (in millions):
| Years Ended December 31,
| 2013 |  | 2012 |  | 2011
Balance as of beginning of year | $ | 94 |  |  | $ | 87 |  |  | $ | 64 |
Liabilities incurred | 4 |  |  | — |  |  | 1 |
Liabilities settled | (4 | ) |  | (3 | ) |  | (4 | )
Accretion expense | 6 |  |  | 6 |  |  | 4 |
Revisions in estimated cash flows | — |  |  | 4 |  |  | 22 |
Balance as of end of year | $ | 100 |  |  | $ | 94 |  |  | $ | 87 |
Pursuant to regulation, the amortization of utility plant AROs is included in depreciation expense and in customer prices. Any differences in the timing of recognition of costs for financial reporting and ratemaking purposes are deferred as a regulatory asset or regulatory liability. Recovery of Trojan decommissioning costs is included in PGE’s retail prices, currently at approximately $4 million annually, with an equal amount recorded in Depreciation and amortization expense. PGE maintains a separate trust account, Nuclear decommissioning trust in the consolidated balance sheet, for funds collected from customers through prices to cover the cost of Trojan decommissioning activities. See “Trust Accounts” in Note 3, Balance Sheet Components, for additional information on the Nuclear decommissioning trust. The Oak Grove hydro facility and transmission and distribution plant located on public right-of-ways and on certain easements meet the requirements of a legal obligation and will require removal when the plant is no longer in service. An ARO liability is not currently measurable as management believes that these assets will be used in utility operations for the foreseeable future. Removal costs are charged to accumulated asset retirement removal costs, which is included in Regulatory liabilities on PGE’s consolidated balance sheets.

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- Definition The entire disclosure for an asset retirement obligation and the associated long-lived asset. An asset retirement obligation is a legal obligation associated with the disposal or retirement from service of a tangible long-lived asset that results from the acquisition, construction or development, or the normal operations of a long-lived asset, except for certain obligations of lessees. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 410 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6392692&loc=d3e7535-110849 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 410 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6392692&loc=d3e7569-110849 + Details
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