Asset Retirement Obligations

12 Months Ended

Dec. 31, 2014

Asset Retirement Obligation [Abstract]

Asset Retirement Obligations

Asset Retirement Obligations

Changes in NiSource’s liability for asset retirement obligations for the years 2014 and 2013 are presented in the table below:

(in millions)	2014			2013
Beginning Balance	$	174.4		$	160.4
Accretion expense	1.5			1.2
Accretion recorded as a regulatory asset	8.2			8.2
Additions	2.5			10.1
Settlements	(8.8		)	(6.0		)
Change in estimated cash flows (1)	(18.4		)	0.5
Ending Balance	$	159.4		$	174.4

⁽¹⁾The change in estimated cash flows for 2014 is primarily attributed to changes in estimated costs and settlement timing for electric generating stations and to retire pipeline.

NiSource has recognized asset retirement obligations associated with various legal obligations including costs to remove and dispose of certain construction materials located within many of NiSource’s facilities, certain costs to retire pipeline, removal costs for certain underground storage tanks, removal of certain pipelines known to contain PCB contamination, closure costs for certain sites including ash ponds, solid waste management units and a landfill, as well as some other nominal asset retirement obligations. NiSource recognizes that there are obligations to incur significant costs to retire wells associated with gas storage operations; however, the lives of these wells are indeterminable until management establishes plans for closure. Additionally, NiSource has a significant obligation associated with the decommissioning of its two hydro facilities located in Indiana. These hydro facilities have an indeterminate life, and no asset retirement obligation has been recorded.

Certain costs of removal that have been, and continue to be, included in depreciation rates and collected in the service rates of the rate-regulated subsidiaries are classified as Regulatory liabilities and other removal costs on the Consolidated Balance Sheets.