6. ASSET RETIREMENT OBLIGATIONS

Asset Retirement Obligations (AROs) associated with tangible long-lived assets are legal obligations that exist under enacted laws, statutes and written or oral contracts, including obligations arising under the doctrine of promissory estoppel. These liabilities are recognized at estimated fair value as incurred with a corresponding amount capitalized as part of the cost of the related long-lived assets and depreciated over their useful lives. Accretion of the liabilities due to the passage of time is recorded to a regulatory asset and/or liability. Changes in the estimated fair values of the liabilities are recognized when known. Evergy, Westar Energy and KCP&L record the current portion of AROs within other current liabilities on their consolidated balance sheets.

Westar Energy, KCP&L and GMO have AROs related to asbestos abatement and the closure and post-closure care of ponds and landfills containing coal combustion residuals (CCRs). In addition, Westar Energy and KCP&L have AROs related to decommissioning Wolf Creek Generating Station (Wolf Creek) and the retirement of wind generation facilities.

Certain of the Evergy Companies' generating stations or other facilities may contain asbestos due to the age of the facilities, but no confirmation or measurement of the total amount of asbestos could be determined as of September 30, 2018. Due to the inability to reasonably estimate the quantities or the amount of disturbance that will be necessary during dismantlement at the end of the life of a plant or facility, the fair value of this ARO cannot be reasonably estimated at this time. Management will continue to monitor the obligation and will recognize a liability in the period in which sufficient information becomes available to reasonably estimate its fair value.

The following table summarizes the change in the Evergy Companies' AROs for the periods ending September 30, 2018 and December 31, 2017.



	Evergy						Westar Energy						KCP&L^(a)
	2018			2017			2018			2017			2018			2017
	(millions)
Beginning balance, January 1	$	405.1		$	324.0		$	405.1		$	324.0		$	266.3		$	278.0
Liabilities assumed upon merger with Great Plains Energy	412.2			—			—			—			—			—
Liabilities incurred during the year	7.4			13.5			7.4			13.5			—			—
Revision in timing and/or estimates	(138.6		)	66.8			(133.0		)	66.8			(5.7		)	0.3
Settlements	(15.9		)	(16.0		)	(10.6		)	(16.0		)	(9.9		)	(25.5		)
Accretion	22.1			16.8			14.0			16.8			12.6			13.5
Ending balance	$	692.3		$	405.1		$	282.9		$	405.1		$	263.3		$	266.3
Less: current portion	(69.6		)	(25.1		)	(25.1		)	(25.1		)	(40.6		)	(34.9		)
Total noncurrent asset retirement obligation	$	622.7		$	380.0		$	257.8		$	380.0		$	222.7		$	231.4

^(a)KCP&L amounts are only included in consolidated Evergy from the date of the closing of the merger, June 4, 2018, through September 30, 2018.

See Note 2 for more information regarding KCP&L's and GMO's ARO liabilities that Evergy assumed as a result of the merger.

In June 2018, Evergy and Westar Energy recorded a $127.0 million revision in estimate primarily related to Westar Energy's ARO to decommission its 47% ownership share of Wolf Creek.