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Asset Retirement Obilgations | 12 Months Ended
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Dec. 31, 2014
Asset Retirement Obligation [Abstract] |
Asset Retirement Obligations | ASSET RETIREMENT OBLIGATIONS AROs consist of the following (in millions):
| As of December 31,
| 2014 |  | 2013
Trojan decommissioning activities | $ | 41 |  |  | $ | 41 |
Utility plant | 64 |  |  | 49 |
Non-utility property | 11 |  |  | 10 |
Asset retirement obligations | $ | 116 |  |  | $ | 100 |
Trojan decommissioning activities represents the present value of future decommissioning costs 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 2012, with the U.S. Court of Federal Claims issuing a judgment awarding certain damages to the Plaintiffs. In 2013, the Plaintiffs received $70 million for the settlement of this matter. The settlement agreement also provided for a process to submit claims for allowable costs for the period 2010 through 2013, and was subsequently extended to cover 2014 through 2016. In 2014, the Plaintiffs received $9 million for costs related to 2010 through 2013. The Company will seek recovery of any costs for subsequent periods in future extensions of the agreement. PGE has received proceeds of $50 million related to its share in this legal matter, with $44 million received in 2013 and $6 million received in 2014. Such funds were deposited into the Nuclear decommissioning trust and recorded as a regulatory liability to offset amounts previously collected in relation to Trojan decommissioning activities. In December 2014, the OPUC issued an order on the Company’s 2015 GRC, authorizing the return of the $50 million of proceeds received related to this legal matter to customers over a three-year period beginning January 1, 2015. The ARO related to Trojan decommissioning activities is not impacted by the outcome of this legal matter because the proceeds received in connection with the settlement of this legal matter are for past Trojan decommissioning costs and this ARO reflects future Trojan decommissioning costs. 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 2014, the Company incurred AROs totaling $8 million related to the three new generating resources: Port Westward Unit 2 (PW2), Tucannon River Wind Farm (Tucannon River), and Carty Generating Station (Carty). In December 2014 and 2013, PGE increased its ARO related to Boardman by $7 million and $4 million, respectively, in connection with the acquisition of additional interests in Boardman, with corresponding increases in the cost basis of the plant, included in Electric utility plant, net on the consolidated balance sheet. For additional information regarding the Company’s acquisition of additional interests in Boardman, see Note 17, Jointly-owned Plant. 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,
| 2014 |  | 2013 |  | 2012
Balance as of beginning of year | $ | 100 |  |  | $ | 94 |  |  | $ | 87 |
Liabilities incurred | 15 |  |  | 4 |  |  | — |
Liabilities settled | (3 | ) |  | (4 | ) |  | (3 | )
Accretion expense | 6 |  |  | 6 |  |  | 6 |
Revisions in estimated cash flows | (2 | ) |  | — |  |  | 4 |
Balance as of end of year | $ | 116 |  |  | $ | 100 |  |  | $ | 94 |
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, 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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