Property, Plant and Equipment

12 Months Ended

Dec. 31, 2021

Dec. 31, 2019

Entity Information [Line Items]

Utility Plant In Service

The original cost of property, plant and equipment segregated by functional classifications follows:

	As of December 31,
	2021		2020
	(In Thousands)
Production	$	4,099,110	$	4,191,223
Transmission	436,257		408,380
Distribution	1,831,029		1,671,861
General plant	277,533		258,931
Total property, plant and equipment	$	6,643,929	$	6,530,395

As of December 31, 2021 and 2020, AES Indiana had $300.1 million and $74.5 million, respectively, of net property, plant and equipment associated with the probable Petersburg Unit 1 and Unit 2 retirements recorded as long-term regulatory assets (for further discussion, see Note 2, “Regulatory Matters - IRP Filing”).

Substantially all of AES Indiana’s property is subject to a $1,803.8 million direct first mortgage lien, as of December 31, 2021, securing AES Indiana’s first mortgage bonds. Total non-contractually or legally required accrued removal costs of utility plant in service at December 31, 2021 and 2020 were $846.1 million and $818.0 million, respectively; and total contractually or legally required removal costs of property, plant and equipment at December 31, 2021 and 2020 were $189.5 million and $195.2 million, respectively. Please see “ARO” below for further information.

ARO

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. 

AES Indiana’s ARO relates primarily to environmental issues involving asbestos-containing materials, ash ponds, landfills and miscellaneous contaminants associated with its generating plants, transmission system and distribution system. The following is a roll forward of the ARO legal liability year end balances:

	2021		2020
	(In Thousands)
Balance as of January 1	$	195,236	$	204,219
Liabilities settled	(13,692)		(18,302)
Revisions to cash flow and timing estimates	—		1,120
Accretion expense	7,965		8,199
Balance as of December 31	$	189,509	$	195,236

AES Indiana recorded adjustments to its ARO liabilities of $0.0 million and $1.1 million in 2021 and 2020, respectively, primarily to reflect increases to estimated ash pond closure costs, including groundwater remediation. As of December 31, 2021 and 2020, AES Indiana did not have any assets that are legally restricted for settling its ARO liability.

Indianapolis Power And Light Company

Entity Information [Line Items]

Utility Plant In Service

. PROPERTY, PLANT AND EQUIPMENT

The original cost of property, plant and equipment segregated by functional classifications follows:

	As of December 31,
	2021		2020
	(In Thousands)
Production	$	4,099,110	$	4,191,223
Transmission	436,257		408,380
Distribution	1,831,029		1,671,861
General plant	277,533		258,931
Total property, plant and equipment	$	6,643,929	$	6,530,395

As of December 31, 2021 and 2020, AES Indiana had $300.1 million and $74.5 million, respectively, of net property, plant and equipment associated with the probable Petersburg Unit 1 and Unit 2 retirements recorded as long-term regulatory assets (for further discussion, see Note 2, “Regulatory Matters - IRP Filing”).

Substantially all of AES Indiana’s property is subject to a $1,803.8 million direct first mortgage lien, as of December 31, 2021, securing AES Indiana’s first mortgage bonds. Total non-contractually or legally required accrued removal costs of utility plant in service at December 31, 2021 and 2020 were $846.1 million and $818.0 million, respectively; and total contractually or legally required removal costs of property, plant and equipment at December 31, 2021 and 2020 were $189.5 million and $195.2 million, respectively. Please see “ARO” below for further information.

ARO

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.

AES Indiana’s ARO relates primarily to environmental issues involving asbestos-containing materials, ash ponds, landfills and miscellaneous contaminants associated with its generating plants, transmission system and distribution system. The following is a roll forward of the ARO legal liability year end balances:

	2021		2020
	(In Thousands)
Balance as of January 1	$	195,236	$	204,219
Liabilities settled	(13,692)		(18,302)
Revisions to cash flow and timing estimates	—		1,120
Accretion expense	7,965		8,199
Balance as of December 31	$	189,509	$	195,236

AES Indiana recorded adjustments to its ARO liabilities of $0.0 million and $1.1 million in 2021 and 2020, respectively, primarily to reflect increases to estimated ash pond closure costs, including groundwater remediation. As of December 31, 2021 and 2020, AES Indiana did not have any assets that are legally restricted for settling its ARO liability.