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Asset Retirement Obligations
 12 Months Ended
Dec. 31, 2015
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. FES uses an expected cash flow approach to measure the fair value of their nuclear decommissioning AROs.
FirstEnergy and FES maintain NDTs that are legally restricted for purposes of settling the nuclear decommissioning ARO. The fair values of the decommissioning trust assets as of December 31, 2015 and 2014 were as follows:
 
 
2015
 
2014
 
 
(In millions)
FirstEnergy
 
$
2,282

 
$
2,341

FES
 
$
1,327

 
$
1,365



The following table summarizes the changes to the ARO balances during 2015 and 2014:
ARO Reconciliation
 
FirstEnergy
 
FES
 
 
(In millions)
Balance, January 1, 2014
 
$
1,678

 
$
1,015

Liabilities settled
 
(9
)
 
(7
)
Accretion
 
113

 
66

Revisions in estimated cash flows
 
(395
)
 
(233
)
Balance, December 31, 2014
 
$
1,387

 
$
841

Liabilities settled
 
(13
)
 
(8
)
Accretion
 
92

 
55

Revisions in estimated cash flows
 
(56
)
 
(57
)
Balance, December 31, 2015
 
$
1,410

 
$
831



During 2015, FE and FES reduced its ARO by $57 million based on the results of decommissioning cost studies for the Davis-Besse and Perry nuclear generating stations.

During 2014, based on studies by a third-party to reassess the estimated costs of decommissioning certain nuclear generating facilities, FE decreased its ARO by $395 million ($233 million at FES) of which $133 million was credited against a regulatory asset associated with nuclear decommissioning and spent fuel disposal costs for TMI-2. The decrease in the ARO primarily resulted from an extension in the number of years in which decommissioning activities are estimated to occur at Davis-Besse, Perry, TMI-2 and Beaver Valley Units 1 and 2.