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Property, Plant, and Equipment
 12 Months Ended
Dec. 31, 2018
Property, Plant and Equipment [Abstract]  
Property, Plant, and Equipment [Text Block]
Note 11 – Property, Plant, and Equipment
The following table presents nonregulated and regulated Property, plant, and equipment – net as presented on the Consolidated Balance Sheet for the years ended:
 
 
 
 
 
 
 
 
 
Estimated
Useful Life  (1)
(Years)
 
Depreciation
Rates (1)
(%)
 
December 31,
2018

2017
 
 
 
 
 
(Millions)
Nonregulated:
 
 
 
 
 
 
 
Natural gas gathering and processing facilities
5 - 40
 
 
 
$
15,324

 
$
18,440

Construction in progress
Not applicable
 
 
 
778

 
566

Other
2 - 45
 
 
 
2,356

 
2,776

Regulated:
 
 
 
 
 
 
 
Natural gas transmission facilities
 
 
1.20 - 6.97
 
17,312

 
14,460

Construction in progress
Not applicable
 
Not applicable
 
965

 
1,637

Other
5 - 45
 
1.35 - 33.33
 
1,926

 
1,634

Total property, plant, and equipment, at cost
 
 
 
 
38,661

 
39,513

Accumulated depreciation and amortization
 
 
 
 
(11,157
)
 
(11,302
)
Property, plant, and equipment — net
 
 
 
 
$
27,504

 
$
28,211

__________
(1)
Estimated useful life and depreciation rates are presented as of December 31, 2018. Depreciation rates and estimated useful lives for regulated assets are prescribed by the FERC.
Depreciation and amortization expense for Property, plant, and equipment – net was $1.392 billion, $1.389 billion, and $1.407 billion in 2018, 2017, and 2016, respectively.
Regulated Property, plant, and equipment – net includes approximately $586 million and $626 million at December 31, 2018 and 2017, respectively, related to amounts in excess of the original cost of the regulated facilities within our gas pipeline businesses as a result of our prior acquisitions. This amount is being amortized over 40 years using the straight-line amortization method. Current FERC policy does not permit recovery through rates for amounts in excess of original cost of construction.
Asset Retirement Obligations
Our accrued obligations relate to underground storage caverns, offshore platforms and pipelines, fractionation and compression facilities, gas gathering well connections and pipelines, and gas transmission pipelines and facilities. At the end of the useful life of each respective asset, we are legally obligated to plug storage caverns and remove any related surface equipment, to restore land and remove surface equipment at gas processing, fractionation, and compression facilities, to dismantle offshore platforms and appropriately abandon offshore pipelines, to cap certain gathering pipelines at the wellhead connection and remove any related surface equipment, and to remove certain components of gas transmission facilities from the ground.
The following table presents the significant changes to our ARO, of which $968 million and $946 million are included in Regulatory liabilities, deferred income, and other with the remaining current portion in Accrued liabilities at December 31, 2018 and 2017, respectively.
 
December 31,
 
2018
 
2017
 
(Millions)
Beginning balance
$
998

 
$
862

Liabilities incurred
21

 
33

Liabilities settled
(19
)
 
(16
)
Accretion expense (1)
71

 
141

Revisions (2)
(39
)
 
(22
)
Ending balance
$
1,032

 
$
998

___________
(1)
The decrease in accretion expense in 2018 primarily reflects the absence of a 2017 adjustment associated with obligations identified from certain Transco land agreements.
(2)
Several factors are considered in the annual review process, including inflation rates, current estimates for removal cost, market risk premiums, discount rates, and the estimated remaining useful life of the assets. The 2018 revisions reflect changes in removal cost estimates, decreases in the estimated remaining useful life of certain assets and increases in the discount rates used in the annual review process. The 2017 revisions reflect changes in removal cost estimates and decreases in the estimated remaining useful life of certain assets and discount rates used in the annual review process.
The funds Transco collects through a portion of its rates to fund its ARO are deposited into an external trust account dedicated to funding its ARO (ARO Trust). (See Note 17 – Fair Value Measurements, Guarantees, and Concentration of Credit Risk.) Under its current rate settlement, Transco’s annual funding obligation is approximately $36 million, with installments to be deposited monthly.