Duke Energy 2011 Annual Report Download - page 140

PART II
DUKE ENERGY CORPORATION •DUKE ENERGY CAROLINAS, LLC •DUKE ENERGY OHIO, INC. •DUKE ENERGY INDIANA, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
As of December 31, 2010
(in millions)
Duke
Energy
Duke Energy
Carolinas
Duke Energy
Ohio
Duke Energy
Indiana
Recovery/Refund
Period Ends(k)
Regulatory Assets(a)
Vacation accrual $ 146 $ 67 $ 8 $ 13 2011
Under-recovery of fuel costs 31 — 12 19 2011
Post-in-service carrying costs and deferred operating expense(c)(l) 28 28 — — 2011
Over-distribution of Bulk Power Marketing sharing 35 35 — — 2011
Other 15 6 — 9 2011
Total Current Regulatory Assets(d) 255 136 20 41
Net regulatory asset related to income taxes(e) 780 601 78 101 (h)
Accrued pension and post-retirement 1,616 680 211 316 (b)
ARO costs 133 133 — — 2043
Regulatory transition charges (RTC) 3 — 3 — 2011
Gasification services agreement buyout costs 129 — — 129 2018
Deferred debt expense(e) 138 108 9 21 2040
Post-in-service carrying costs and deferred operating expense(c)(l) 103111181 (h)
Under-recovery of fuel costs 21 20 1 — 2012
Hedge costs and other deferrals 6 — 6 — (b)
Storm cost deferrals 33 — 21 12 (b)
Manufactured gas plant environmental costs 60 — 60 — (b)
Smart Grid 28 — 28 — (b)
RTO costs(m) 7— 7— (b)
Other 78 23 5 50 (b)
Total Non-Current Regulatory Assets 3,135 1,576 440 710
Total Regulatory Assets $3,390 $1,712 $460 $751
Regulatory Liabilities(a)
Nuclear property and insurance reserves $ 52 $ 52 $ — $ — 2011
DSM costs(f) 38 38 — — (i)
Gas purchase costs 25 — 25 — 2011
Over-recovery of fuel costs(f) 155 152 3 — 2011
Other 9522 (b)
Total Current Regulatory Liabilities(g) 279 247 30 2
Removal costs(e) 2,465 1,684 220 565 (j)
Nuclear property and liability reserves 89 89 — — 2043
DSM costs(f) 57 52 5 — (i)
Accrued pension and other post-retirement benefits 88 — 20 58 (b)
Commodity contract termination settlement 28 — — 28 2014
Injuries and damages reserve(e) 38 38 — — (b)
Hedge costs and other deferrals(e) 75 60 1 — 2042
Other 361719 — (b)
Total Non-Current Regulatory Liabilities 2,876 1,940 265 651
Total Regulatory Liabilities $3,155 $2,187 $295 $653
(a) All regulatory assets and liabilities are excluded from rate base unless otherwise noted.
(b) Recovery/Refund period varies for these items with some currently unknown.
(c) Duke Energy Carolinas is allowed to earn a return on the North Carolina portion of the outstanding balance. Duke Energy Carolinas does not earn a return on the South Carolina portion
during the refund period.
(d) Included in Other within Current Assets on the Consolidated Balance Sheets.
(e) Included in rate base.
(f) Duke Energy Carolinas is required to pay interest on the outstanding balance.
(g) Included in Other within Current Liabilities and on the Consolidated Balance Sheets.
(h) Recovery is over the life of the associated asset.
(i) Incurred costs were deferred and are being recovered in rates. Duke Energy Carolinas is currently over-recovered for these costs in the South Carolina jurisdiction. For 2011 and 2010,
expected refund period is three years and two years, respectively, but is dependent on volume of sales.
(j) Liability is extinguished over the lives of the associated assets.
(k) Represents the latest recovery period across all jurisdictions in which the Duke Energy Registrants operate. Regulatory asset and liability balances may be collected or refunded sooner
than the indicated date in certain jurisdictions.
(l) Duke Energy Carolinas amounts are excluded from rate base. Duke Energy Ohio amounts are included in rate base. At Duke Energy Indiana, some amounts are included and some are
excluded from rate base.
(m) Duke Energy Carolinas RTO costs reflect those from GridSouth, while those from Duke Energy Ohio and Duke Energy Indiana are related to the Midwest Independent Transmission
SystemOperator,Inc.(MidwestISO).
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