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Asset Retirement Obligations
 12 Months Ended
Dec. 31, 2011
Asset Retirement Obligations
ASSET RETIREMENT OBLIGATIONS
AROs represent obligations that result from laws, statutes, contracts and regulations related to the eventual retirement of certain of Dominion's and Virginia Power's long-lived assets. Dominion's and Virginia Power's AROs are primarily associated with the decommissioning of their nuclear generation facilities. In addition, Dominion's AROs include plugging and abandonment of gas and oil wells, interim retirements of natural gas gathering, transmission, distribution and storage pipeline components, and the future abatement of asbestos expected to be disturbed in the Companies' generation facilities.
The Companies have also identified, but not recognized, AROs related to retirement of Dominion's LNG facility, Dominion's gas storage wells in its underground natural gas storage network, certain Virginia Power electric transmission and distribution assets located on property with easements, rights of way, franchises and lease agreements, Virginia Power's hydroelectric generation facilities and the abatement of certain asbestos not expected to be disturbed in the Companies' generation facilities. The Companies currently do not have sufficient information to estimate a reasonable range of expected retirement dates for any of these assets since the economic lives of these assets can be extended indefinitely through regular repair and maintenance and they currently have no plans to retire or dispose of any of these assets. As a result, a settlement date is not determinable for these assets and AROs for these assets will not be reflected in the Consolidated Financial Statements until sufficient information becomes available to determine a reasonable estimate of the fair value of the activities to be performed. The Companies continue to monitor operational and strategic developments to identify if sufficient information exists to reasonably estimate a retirement date for these assets. The changes to AROs during 2010 and 2011 were as follows:
 
 
Amount

(millions)
 
Dominion
 
AROs at December 31, 2009(1)
$
1,614

Obligations incurred during the period
1

Obligations settled during the period
(9
)
Revisions in estimated cash flows
5

Accretion
85

Obligations relieved due to sale of Appalachian E&P operations
(105
)
AROs at December 31, 2010(1)
$
1,591

Obligations incurred during the period
16

Obligations settled during the period
(16
)
Revisions in estimated cash flows(2)
(277
)
Accretion
84

AROs at December 31, 2011(1)
$
1,398

 
 
Virginia Power
 

AROs at December 31, 2009(3)
$
637

Accretion
35

AROs at December 31, 2010(3)
$
672

Obligations incurred during the period
10

Obligations settled during the period
(3
)
Revisions in estimated cash flows(2)
(90
)
Accretion
36

AROs at December 31, 2011(3)
$
625

(1)
Includes $9 million, $14 million and $15 million reported in other current liabilities at December 31, 2009, 2010, and 2011, respectively.
(2)
Primarily reflects the effect of lower anticipated costs due to the expected future recovery from the DOE of certain spent fuel storage costs.
(3)
Includes $1 million, $3 million and $1 million reported in other current liabilities at December 31, 2009, 2010 and 2011, respectively.

Dominion and Virginia Power have established trusts dedicated to funding the future decommissioning of their nuclear plants. At December 31, 2011 and 2010, the aggregate fair value of Dominion's trusts, consisting primarily of equity and debt securities, totaled $3.0 billion and $2.9 billion, respectively. At December 31, 2011 and 2010, the aggregate fair value of Virginia Power's trusts, consisting primarily of debt and equity securities, totaled $1.4 billion and $1.3 billion, respectively.