Development Projects

[Table of Contents](#i59ca7ab3cc784e42904d434b0008a7a9_10)Notes to Consolidated Financial Statements(Dollars in millions, unless otherwise noted)  
Note 10 — Asset Retirement Obligationsand site restoration activities necessary to achieve a partial site release from the NRC (release of the site for unrestricted use, except for any on-site dry cask storage) within 20 years from the end of licensed life for each of our Ginna and FitzPatrick units and from the end of licensed life for the last of the NMP operating units. While there is flexibility under the Joint Proposal for decommissioning timing, we expect to increase the AROs associated with our New York nuclear plants during the first quarter of 2022 to reflect this scenario. The Joint Proposal also required a contribution of $15 million to the NDT for NMP Unit 2 in January 2022 and requires various financial assurance mechanisms through the duration of decommissioning and site restoration, including a minimum NDT balance for each unit, adjusted for specific stages of decommissioning, and a parent guaranty for site restoration costs updated annually as site restoration progresses, which must be replaced with a third-party surety bond or equivalent financial instrument in the event we fall below investment grade. See Note 24 — Separation from Exelon for additional information.Non-Nuclear Asset Retirement Obligations We have AROs for plant closure costs associated with our natural gas, oil, and renewable generating facilities, including asbestos abatement, removal of certain storage tanks, restoring leased land to the condition it was in prior to construction of renewable generating stations, and other decommissioning-related activities. See Note 1 — Significant Accounting Policies for additional information on the accounting policy for AROs. The following table provides a rollforward of the non-nuclear AROs reflected in the Consolidated Balance Sheets from December 31, 2019 to December 31, 2021:

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |
|  | Non-nuclear AROs |
| Balance as of December 31, 2019 | $ | 216  |  |
| Net increase due to changes in, and timing of, estimated future cash flows | 2  |  |
| Development projects | 1  |  |
| Accretion expense | 11  |  |
| Asset divestitures | (4) |  |
| Payments | (4) |  |
| AROs reclassified to liabilities held for sale | (10) |  |
| Balance as of December 31, 2020 | 212  |  |
| Net increase due to changes in, and timing of, estimated future cash flows | 5  |  |
|  |  |
| Accretion expense | 11  |  |
| Asset divestitures | (19) |  |
| Payments | (3) |  |
| AROs previously held for sale | 10  |  |
| Balance as of December 31, 2021 | $ | 216  |  |

.11. Leases Lessee We have operating leases for which we are the lessee. The significant types of leases are contracted generation, real estate, and vehicles and equipment. The following table outlines other terms and conditions of the lease agreements as of December 31, 2021. We did not have material finance leases in 2021, 2020, or in 2019. 

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |
|  | Years |
| Remaining lease terms | 1-34 |
| Options to extend the term | 1-30 |
| Options to terminate within | 1-2 |

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