Asset Retirement Obligations

12 Months Ended

Dec. 31, 2012

Asset Retirement Obligations

7. ASSET RETIREMENT OBLIGATIONS

ASC 410 "Asset Retirement and Environmental Obligations" addresses financial accounting and reporting for legal obligations associated with the retirement of long-lived assets that result from the acquisition, construction, development and/or normal operation. A legal obligation for purposes of ASC 410 is an obligation that a party is required to settle as a result of an existing law, statute, ordinance, written or oral contract or the doctrine of promissory estoppel. ARO liability is included in Miscellaneous on the accompanying Consolidated Balance Sheets.

IPL's ARO relates primarily to environmental issues involving asbestos, ash ponds, landfills and miscellaneous contaminants associated with its generating plants, transmission system and distribution system. The following is a reconciliation of the ARO legal liability year end balances:

	2012		2011
	(In Millions)
Balance as of January 1	$	16.6	$	15.6
Accretion Expense		1.0		1.0
Balance as of December 31	$	17.6	$	16.6

As of December 31, 2012 and 2011, IPL did not have any assets that are legally restricted for settling its ARO liability.

Indianapolis Power And Light Company [Member]

Asset Retirement Obligations

7. ASSET RETIREMENT OBLIGATIONS

ASC 410 "Asset Retirement and Environmental Obligations" addresses financial accounting and reporting for legal obligations associated with the retirement of long-lived assets that result from the acquisition, construction, development and/or normal operation. A legal obligation for purposes of ASC 410 is an obligation that a party is required to settle as a result of an existing law, statute, ordinance, written or oral contract or the doctrine of promissory estoppel. ARO liability is included in Miscellaneous on the accompanying Consolidated Balance Sheets.

IPL's ARO relates primarily to environmental issues involving asbestos, ash ponds, landfills and miscellaneous contaminants associated with its generating plants, transmission system and distribution system. The following is a reconciliation of the ARO legal liability year end balances:

	2012		2011
	(In Millions)
Balance as of January 1	$	16.6	$	15.6
Accretion Expense		1.0		1.0
Balance as of December 31	$	17.6	$	16.6

As of December 31, 2012 and 2011, IPL did not have any assets that are legally restricted for settling its ARO liability.