Asset Retirement Obligations

FPL's AROs relate primarily to the nuclear decommissioning obligations of its nuclear units. FPL's AROs other than nuclear decommissioning obligations are not significant. The accounting provisions result in timing differences in the recognition of legal asset retirement costs for financial reporting purposes and the method the FPSC allows FPL to recover in rates. NEER's AROs relate primarily to the nuclear decommissioning obligations of its nuclear plants and obligations for the dismantlement of certain of its wind and solar facilities. See Note 1 - 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:



	FPL				NEER				NEE
					(millions)
Balances, December 31, 2014	$	1,355			$	631			$	1,986
Liabilities incurred	5				46				51
Accretion expense	73				43				116
Liabilities settled	(20		)		(2		)		(22		)
Revision in estimated cash flows - net	409			^(a)	(71		)	^(b)	338
Balances, December 31, 2015	1,822				647				2,469
Liabilities incurred	1				56				57
Accretion expense	91				47				138
Liabilities settled	—				(2		)		(2		)
Revision in estimated cash flows - net	5				69			^(c)	74
Balances, December 31, 2016	$	1,919			$	817			$	2,736

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(a)	Primarily reflects the effect of revised cost estimates for decommissioning FPL's nuclear units consistent with the updated nuclear decommissioning studies approved by the FPSC.


(b)	Primarily reflects the effect of revised cost estimates for decommissioning NEER’s nuclear units and a change in assumptions relating to spent fuel costs, partly offset by increased escalation rates.


(c)	Primarily reflects the effect of revised cost estimates to dismantle certain of NEER’s wind and solar facilities.

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 4 - Special Use Funds):



	FPL		NEER		NEE
			(millions)
Balances, December 31, 2016	$	3,665	$	1,769	$	5,434
Balances, December 31, 2015	$	3,430	$	1,634	$	5,064

NEE and FPL have identified but not recognized ARO liabilities related to electric transmission and distribution and telecommunications assets 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 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.