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Asset Retirement Obilgations | 12 Months Ended
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Dec. 31, 2016
Asset Retirement Obligation [Abstract] |
Asset Retirement Obligations | ASSET RETIREMENT OBLIGATIONS AROs consist of the following (in millions):
| As of December 31,
| 2016 |  | 2015
Trojan decommissioning activities | $ | 44 |  |  | $ | 43 |
Utility plant | 105 |  |  | 97 |
Non-utility property | 12 |  |  | 11 |
Asset retirement obligations | $ | 161 |  |  | $ | 151 |
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 USDOE facility is complete, which is not expected prior to 2034. 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, which holds a 67.5% ownership interest in Trojan, 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 sought reimbursement for damages incurred through 2009. A trial before the U.S. Court of Federal Claims concluded in 2012, with the Court issuing a judgment awarding certain damages to the Plaintiffs. The settlement agreement also provides for a process to submit claims for allowable costs for the periods subsequent to 2009, including an extension to cover costs through 2019. Pursuant to this process, the USDOE agreed to reimburse the Plaintiffs $81 million for costs incurred through 2015 resulting from USDOE delays in accepting spent nuclear fuel. The Plaintiffs have received cumulative cash reimbursements of $79 million and expect to receive $2 million in 2017. PGE has received proceeds of $50 million related to its share in this legal matter and expects to receive $1 million in 2017. The settlement amounts received were 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 $50 million of the 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 was not impacted by the outcome of this legal matter because the proceeds received in connection with the settlement of this legal matter were 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, the disposal of which is governed by environmental regulation. During 2016, the Company recorded an overall increase in AROs, including Trojan, of $9 million, with the change comprised of an increase to revisions in estimated cash flows and incurred liabilities of $6 million, accretion of $6 million, and a reduction of $3 million due to settled liabilities. In 2016, PGE decreased its ARO related to Boardman by $3 million due to changes in the timing of estimated settlement, with corresponding decreases in the cost basis of the plant, included in Electric utility plant, net on the consolidated balance sheet. In 2015, PGE increased its ARO related to Boardman by $9 million, due primarily to changes in timing of estimated settlements and due to the acquisition of additional interests in Boardman. For additional information regarding the Company’s interests in Boardman, see Note 16, Jointly-owned Plant. The United States Environmental Protection Agency (EPA) published a final rule, effective October 19, 2015, that regulates Coal Combustion Residuals (CCRs) under the Resource Conservation and Recovery Act, Subtitle D. The rule imposes extensive new requirements, including location restrictions, design and operating standards, groundwater monitoring and corrective action requirements, and closure and post-closure care requirements on CCR impoundments and landfills that are located on active power plant sites and not closed. The requirements for covered CCR impoundments and landfills under the final rule include commencement or completion of closure activities generally between three and ten years from certain triggering events. The Boardman coal-fired generating plant (Boardman) produces dry CCRs as a by-product. Disposal of the dry CCRs has historically occurred at an on-site landfill that is permitted and regulated by the State of Oregon under requirements similar to the final EPA rule. PGE has determined that it will continue use of the on-site landfill in compliance with the new rule, and the Company believes the final EPA rule will not have a material effect on operations at Boardman. In 2016, the Company recorded an increase in the ARO related to Colstrip of $6 million related to updated decommissioning estimates, with a corresponding increase in the cost basis of the plant, included in Electric utility plant, net on the consolidated balance sheet. Colstrip utilizes wet scrubbers and a number of settlement ponds that will require upgrading or closure to meet new regulatory requirements. As a result, in 2015, the Company recorded an increase to the Colstrip AROs in the amount of $17 million. PGE plans to seek recovery in customer prices of the incremental costs associated with the final EPA rule. In 2016 and 2015, PGE also recorded an increase in AROs totaling $3 million and $4 million, respectively, related to the Company’s Beaver natural gas-fired generating plant (Beaver) and Carty. 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,
| 2016 |  | 2015 |  | 2014
Balance as of beginning of year | $ | 151 |  |  | $ | 116 |  |  | $ | 100 |
Liabilities incurred | 1 |  |  | 2 |  |  | 15 |
Liabilities settled | (3 | ) |  | (4 | ) |  | (3 | )
Accretion expense | 7 |  |  | 7 |  |  | 6 |
Revisions in estimated cash flows | 5 |  |  | 30 |  |  | (2 | )
Balance as of end of year | $ | 161 |  |  | $ | 151 |  |  | $ | 116 |
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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