Asset Retirement Obligations

9 Months Ended

Sep. 30, 2014

Asset Retirement Obligation Disclosure [Abstract]

Asset Retirement Obligations [Text Block]

7. ASSET RETIREMENT OBLIGATIONS

Asset retirement obligations (AROs) associated with tangible long-lived assets are those for which a legal obligation exists 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.

KCP&L has AROs related to decommissioning Wolf Creek, site remediation of its Spearville Wind Energy Facilities, asbestos abatement and removal of storage tanks, ash ponds and landfills. GMO has AROs related to asbestos abatement and removal of storage tanks, ash ponds and landfills.

The MPSC and KCC require KCP&L and the other owners of Wolf Creek to submit an updated decommissioning cost study every three years. The most recent study was submitted in August 2014. As a result of the new cost estimate, KCP&L increased its ARO to decommission Wolf Creek by $23.9 million.

The following table summarizes the change in Great Plains Energy's and KCP&L's AROs.

		Great Plains Energy							KCP&L
	September 30 2014				December 31 2013			September 30 2014				December 31 2013
		(millions)
Beginning balance, January 1		$	158.8			$	149.3		$	141.7			$	133.2
Revision in timing and/or estimates - Wolf Creek		23.9				—			23.9				—
Revision in timing and/or estimates - other		(0.2		)		—			(0.2		)		—
Accretion		7.5				9.5			6.7				8.5
Ending balance		$	190.0			$	158.8		$	172.1			$	141.7