Duke Energy 2011 Annual Report Download - page 138

PART II
DUKE ENERGY CORPORATION •DUKE ENERGY CAROLINAS, LLC •DUKE ENERGY OHIO, INC. •DUKE ENERGY INDIANA, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
Duke Energy Indiana
Duke Energy Indiana has one reportable operating segment,
Franchised Electric, which generates, transmits, distributes and sells
electricity and conducts operations through Duke Energy Indiana,
which consists of the regulated electric utility business in central,
north central, and southern Indiana.
The remainder of Duke Energy Indiana’s operations is presented
as Other. While it is not considered an operating segment, Other
primarily includes certain governance costs allocated by its parent,
Duke Energy (see Note 13).
At December 31, 2011, 2010, and 2009, all of Duke Energy
Indiana’s assets are owned by the Franchised Electric operating
segment. For the years ended December 31, 2011, 2010, and
2009 all revenues, expenses, and capital and acquisition
expenditures are from the Franchised Electric operating segment.
There were no intersegment revenues for the years ended
December 31, 2011, 2010, and 2009. All of Duke Energy Indiana’s
revenues are generated domestically and its long-lived assets are in
the U.S.
Business Segment Data
Segment EBIT/Consolidated Income
Before Income Taxes
Years Ended December 31,
(in millions) 2011 2010 2009
Franchised Electric(a) $424 $ 650 $ 494
Total reportable segment 424 650 494
Other (59) (87) (46)
Interest expense (137) (135) (144)
Interest income 14 13 13
Total consolidated $242 $ 441 $ 317
(a) As discussed in Note 4, Duke Energy Indiana recorded pre-tax charges of $222 million
and $44 million during the years ended December 31, 2011 and 2010, respectively,
related to the Edwardsport IGCC plant that is currently under construction.
4. REGULATORY MATTERS
Regulatory Assets and Liabilities.
As of December 31, 2011 and 2010, the substantial majority
of USFE&G’s operations applied regulatory accounting treatment.
From 2009 through 2011, certain portions of Commercial Power’s
operations applied regulatory accounting treatment; however,
effective November 2011, as a result of the new Electric Security
Plan (ESP), regulatory accounting treatment will no longer be applied.
Accordingly, these businesses record assets and liabilities that result
from the regulated ratemaking process that would not be recorded
under GAAP for non-regulated entities. See Note 1 for further
information.
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