XML 92 R21.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Asset Retirement Obligations
 12 Months Ended
Dec. 31, 2019
Asset Retirement Obligations [Abstract]  
Asset Retirement Obligations Asset Retirement Obligations

NEE's AROs relate primarily to decommissioning obligations of FPL's and NEER's nuclear units and to obligations for the dismantlement of certain of NEER's wind and solar facilities. For NEE's rate-regulated operations, including FPL, the accounting provisions result in timing differences in the recognition of legal asset retirement costs for financial reporting purposes and the method the regulator allows for recovery in rates. See Note 1 - Rate Regulation and - Decommissioning of Nuclear Plants, Dismantlement of Plants and Other Accrued Asset Removal Costs.

A rollforward of NEE's and FPL's AROs is as follows:
 
NEE
 
FPL
 
 
(millions)
 
Balances, December 31, 2017
$
3,031

 
$
2,047

 
Liabilities incurred
49

 
—

 
Accretion expense
158

 
101

 
Liabilities settled
(26
)
(a) 
(1
)
 
Revision in estimated cash flows - net
4

 
—

 
Impact of NEP deconsolidation
(81
)
(b) 
—

 
Balances, December 31, 2018
3,135

 
2,147

 
Liabilities incurred
100

 
1

 
Accretion expense
172

 
107

 
Liabilities settled
(65
)
(a) 
(1
)
 
Revision in estimated cash flows - net
32

(c) 
14

(c) 
Additions from acquisitions
132

(d) 
—

 
Balances, December 31, 2019
$
3,506

(e) 
$
2,268

 

______________________
(a)
Primarily reflects sales of ownership interests to subsidiaries of NEP. See Note 1 - Disposal of Businesses/Assets.
(b)
See Note 1 - NextEra Energy Partners, LP.
(c)
Includes an increase of approximately $75 million for additional estimated ash pond closure costs at Scherer, partly offset by a decrease of approximately $71 million due to the approval of Turkey Point Units Nos. 3 and 4 license renewals for an additional 20 years.
(d)
See Note 8 for 2019 acquisitions.
(e)
Includes the current portion of AROs of approximately $49 million, which is included in other current liabilities on NEE's consolidated balance sheets.

Restricted funds for the payment of future expenditures to decommission NEE's and FPL's nuclear units included in special use funds on NEE's and FPL's consolidated balance sheets are as follows (see Note 5 - Special Use Funds):
 
NEE
 
FPL
 
(millions)
Balances, December 31, 2019
$
6,880

 
$
4,697

Balances, December 31, 2018
$
5,818

 
$
3,987



NEE and FPL have identified but not recognized ARO liabilities related to the majority of their electric transmission and distribution assets and pipelines resulting from easements over property not owned by NEE or FPL. These easements are generally perpetual and only require retirement action upon abandonment or cessation of use of the property or facility for its specified purpose. The related ARO liability is not estimable for such easements as NEE and FPL intend to use these properties indefinitely. In the event NEE and FPL decide to abandon or cease the use of a particular easement, an ARO liability would be recorded at that time.