APPLICATION OF THE GRI MGPCost~(TM) MODEL FOR LIABILITY ESTIMATION AND COMPREHENSIVE MANUFACTURED GAS PLANT PROGRAM MANAGEMENT

摘要

The Financial Accounting Standards Board (FASB) oversees recognition, measurement, display, and disclosure of environmental remediation liabilities. Given that Alliant Energy is a publicly traded company, it also has periodic reporting requirements with the Securities and Exchange Commission (SEC) and hence, the company's environmental accounting and disclosure is also subject to SEC scrutiny. Alliant Energy~(TM) utilizes the GRI MGPCost~(TM) model to assist with the measurement of costs associated with the management of their MGP sites to meet the requirements of the (FASB). In addition, Alliant Energy~(TM) has used the same cost information as the basis for the development of a comprehensive multi-site management strategy. The output of the GRI MGPCost~(TM) model is a probabilistic distribution of costs for specific management options at a site. These options, however, have numerous sub-components that address each of the primary contaminated media at a site (e.g., soil, sediment, and groundwater). Alliant Energy~(TM) modified the cost model to report estimates of the costs associated with the remediation of each media rather than each site. By identifying these primary remedial components, it was possible to identify what remedial activities were projected to require the greatest expenditures and to design a management strategy plan that focused on the high cost items and managed the cash flow of environmental expenditures. As a result of this application of the model, Alliant Energy~(TM) may be capable of reducing these liabilities hi a more rapid fashion than could have been otherwise achieved. This paper presents the results of this application of the GRI MGPCost~(TM) model and how the results of this application have been used as an environmental management planning and liability estimate disclosure tool.