Asset Retirement Obligations

12 Months Ended

Dec. 31, 2011

Asset Retirement Obligations [Abstract]

Asset Retirement Obligations

Asset Retirement Obligations

FPL's ARO relates primarily to the nuclear decommissioning obligation of its nuclear units.  FPL's AROs other than nuclear decommissioning 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 ARO relates primarily to the nuclear decommissioning obligation of its nuclear plants and obligations for the dismantlement of its wind facilities located on leased property.  See Note 1 - Decommissioning of Nuclear Plants, Dismantlement of Plants and Other Accrued Asset Removal Costs.

A rollforward of NEE's and FPL's ARO is as follows:

	FPL				NEER				NEE
					(millions)
Balances, December 31, 2009	$	1,833			$	585			$	2,418
Liabilities incurred	—				3				3
Accretion expense	101				36				137
Liabilities settled	—				(1		)		(1		)
Revision in estimated cash flows - net	(851		)	(a)	(67		)	(b)	(918		)
Balances, December 31, 2010	1,083				556				1,639
Liabilities incurred	3				3				6
Accretion expense	58				31				89
Revision in estimated cash flows - net	—				(123		)	(c)	(123		)
Balances, December 31, 2011	$	1,144			$	467			$	1,611

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(a) Primarily reflects the effect of a decrease in the escalation rates used to determine the ultimate projected costs of decommissioning FPL's nuclear units and lower costs due to the expected future reimbursement by the DOE of certain spent fuel storage costs as stipulated by a spent fuel settlement agreement.

(b) Primarily reflects the effect of revised probability assessments regarding when assets will be retired and ultimately decommissioned and lower costs due to the expected future reimbursement by the DOE of certain spent fuel storage costs as stipulated by a spent fuel settlement agreement.

(c) Primarily reflects the effect of revised cost estimates and probability assessments regarding when assets will be decommissioned.

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 5):

	FPL		NEER		NEE
			(millions)
Balances, December 31, 2011	$	2,612	$	1,130	$	3,742
Balances, December 31, 2010	$	2,512	$	1,105	$	3,617

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.  In addition, NEE has identified but not recognized ARO liabilities related to the majority of NEER's hydro facilities.  These easements are generally perpetual and, along with the hydro facilities, 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 and hydro facilities as NEE and FPL intend to use these properties and facilities indefinitely.  In the event NEE and FPL decide to abandon or cease the use of a particular easement and/or hydro facility, an ARO liability would be recorded at that time.