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Asset Retirement Obilgations | 12 Months Ended
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Dec. 31, 2021
Asset Retirement Obligation [Abstract] |
Asset Retirement Obligations | ASSET RETIREMENT OBLIGATIONS AROs consist of the following (in millions):
| As of December 31,
| 2021 |  | 2020
Trojan decommissioning activities | $ | 139 |  |  | $ | 139 |
Utility plant | 95 |  |  | 118 |
Non-utility property | 35 |  |  | 34 |
Total asset retirement obligations | 269 |  |  | 291 |
Less: current portion * | 31 |  |  | 21 |
Noncurrent asset retirement obligations | $ | 238 |  |  | $ | 270 |
* Current portion of AROs are classified within Accrued expenses and other current liabilities in the consolidated balance sheets. Trojan decommissioning activities represents the present value of future decommissioning costs for PGE’s 67.5% ownership interest in Trojan, 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 will store 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 2059. In 2021, the Company recorded accretion of $6 million and a reduction of $6 million due to settled liabilities. Under a settlement agreement reached with the USDOE, the Company receives annual reimbursement from the USDOE for certain costs related to monitoring the ISFSI. Pursuant to this process, the USDOE reimbursed the co-owners $5 million in 2021 for costs incurred in 2020 and $5 million in 2020 for costs incurred in 2019 resulting from USDOE delays in accepting spent nuclear fuel. Utility plant represents AROs that have been recognized for the Company’s thermal and wind generation sites, and distribution and transmission assets, the disposal of which is legally required. During 2021, the Company recorded an overall decrease in utility AROs of $23 million, with the change comprised of reductions of $14 million due to revisions in estimated cash flows, accretion of $3 million, and a reduction of $12 million due to settled liabilities. Non-utility property primarily represents AROs that have been recognized for portions of unregulated properties that are currently or previously leased to third parties. Revisions to estimates for non-utility AROs relate to assets that are no longer in service and the offset is charged directly to Depreciation and amortization on the consolidated statements of income in the period in which the revisions are probable and reasonably estimable. Non-utility AROs are not subject to regulatory deferral. In 2020, PGE performed a decommissioning study to update its ARO liability which resulted in a $21 million increase to non-utility property AROs. As part of this study, the Company also established an ARO liability of $3 million related to utility hydro generating properties. In 2020, the ARO was charged to expense in the consolidated statement of income, as regulatory recovery was not yet considered probable. In 2021, PGE completed a depreciation study based on 2019 data, with an order received from the OPUC in December 2021 authorizing new depreciation rates effective May 9, 2022. The OPUC order includes cost recovery of $4 million related to the hydro generating properties. As such, PGE established a regulatory asset and ARO balancing account, resulting in a credit to Depreciation and amortization on the consolidated statements of income of $4 million in 2021. The following is a summary of the changes in the Company’s AROs (in millions):
| Years Ended December 31,
| 2021 |  | 2020 |  | 2019
Balance as of beginning of year | $ | 291 |  |  | $ | 279 |  |  | $ | 197 |
Liabilities incurred | — |  |  | 3 |  |  | — |
Liabilities settled | (18) |  |  | (18) |  |  | (9) |
Accretion expense | 10 |  |  | 10 |  |  | 9 |
Revisions in estimated cash flows | (14) |  |  | 17 |  |  | 82 |
Balance as of end of year | $ | 269 |  |  | $ | 291 |  |  | $ | 279 |
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 with an equal amount recorded in Depreciation and amortization expense. PGE maintains a separate Nuclear decommissioning trust in the consolidated balance sheet for funds collected from customers through prices to cover the cost of Trojan decommissioning activities. 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 410 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2175671 + Details
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