ASSET RETIREMENT OBLIGATIONS

12 Months Ended

Dec. 31, 2020

Asset Retirement Obligation [Abstract]

FirstEnergy has recognized applicable legal obligations for AROs and their associated cost, including reclamation of sludge disposal ponds, closure of coal ash disposal sites, underground and above-ground storage tanks and wastewater treatment lagoons. In addition, FirstEnergy has recognized conditional retirement obligations, primarily for asbestos remediation.

As contemplated under the FES Bankruptcy settlement agreement, AE Supply entered into an agreement on December 31, 2018, to transfer the 1,300 MW Pleasants Power Station and related assets to FG, while retaining certain specified liabilities. Under the terms of the agreement, FG acquired the economic interests in Pleasants as of January 1, 2019, and AE Supply operated Pleasants until ownership was transferred on January 30, 2020. AE Supply will continue to provide access to the McElroy's Run CCR impoundment facility, which was not transferred, and FE will provide guarantees for certain retained environmental liabilities of AE Supply, including the McElroy’s Run CCR impoundment facility. Please see Note 15, "Commitments, Guarantees and Contingencies," for further information.

The following table summarizes the changes to the ARO balances during 2020 and 2019:


ARO Reconciliation	(In millions)

Balance, January 1, 2019	$	812

Liabilities settled	(2)
Accretion	46

Balance, December 31, 2019 (1)	$	856

Liabilities settled (2)	(744)
Accretion	47

Balance, December 31, 2020	$	159

(1) Includes $691 million related to TMI-2 classified as held for sale for the year ended December 31, 2019.

(2) Includes $726 million related to the closing of the asset purchase and sale agreement with TMI-2 Solutions, LLC, a subsidiary of EnergySolutions, LLC, concerning the transfer and dismantlement of TMI-2. See Note 15, "Commitments, Guarantees and Contingencies," for further information.