Asset Retirement Obligations

2 Months Ended

Dec. 31, 2016

Asset Retirement Obligation Disclosure [Abstract]

Asset Retirement Obligations

ASSET RETIREMENT OBLIGATIONS

We record an asset retirement obligation (ARO) when we have a legal obligation to incur retirement costs associated with the retirement of long-lived assets that result from the acquisition, construction, development and operation of the assets and the fair value of the obligation can be reasonable estimated. We have determined that conditional AROs exist for our underground mains and services. We have non-legal cost of removal obligations that we record as a regulatory liability with balances of $528.1 million and $538.0 million as of December 31, 2016 and October 31, 2016, respectively. See Note 1 to the Consolidated Financial Statements in our Form 10-K for the year ended October 31, 2016 for information on the regulatory treatment of our AROs.

The following table presents the change in the liability associated with our conditional AROs.

(in millions)	Two Months Ended December 31, 2016
Balance at October 31, 2016	$	14.1
Liabilities incurred in the period	0.7
Liabilities settled	(0.8		)
Accretion expense	0.3
Balance at December 31, 2016	$	14.3