Duke Energy 2011 Annual Report Download - page 51

PART I
In addition to the above facilities, Commercial Power owns an equity interest in the 585 MW capacity Sweetwater wind projects located in
Texas and the 11 MW capacity INDU Solar Holding JV. Commercial Power’s share in these projects is 289 MW.
INTERNATIONAL ENERGY
The following table provides information about International Energy’s generation portfolio as of December 31, 2011.
Name
Total MW
Capacity
Owned MW
Capacity Fuel Location
Ownership Interest
(percentage)
Paranapanema(a) 2,307 2,119 Hydro Brazil 95%
Egenor 635 635 Hydro/Diesel Peru 100
Cerros Colorados 576 524 Hydro/Natural Gas Argentina 91
DEI El Salvador 328 295 Fuel Oil/Diesel El Salvador 90
DEI Guatemala 366 366 Fuel Oil/Diesel/Coal Guatemala 100
Electroquil 192 163 Diesel Ecuador 85
Aguaytia 175 175 Natural Gas Peru 100
Total 4,579 4,277
(a) Includes Canoas I and II, which is jointly owned by Duke Energy and Companhia Brasileira de Aluminio.
International Energy also owns a 25% equity interest in NMC. In 2011, NMC produced approximately 1 million metric tons of methanol
and in excess of 1 million metric tons of MTBE. Approximately 40% of methanol is normally used in the MTBE production.
OTHER
Duke Energy owns approximately 4.8 million square feet of corporate, regional and district office space spread throughout its service
territories in the Carolinas and the Midwest. Additionally, Duke Energy leases approximately 1.6 million square feet of office space throughout
the Carolinas, Midwest and in Houston, Texas. In February 2009, Duke Energy entered into a lease for approximately 500,000 square feet of
office space in Charlotte, North Carolina, that became its new corporate headquarters.
ITEM 3. LEGAL PROCEEDINGS.
For information regarding legal proceedings, including regulatory and environmental matters, see Note 4 to the Consolidated Financial
Statements, “Regulatory Matters” and Note 5 to the Consolidated Financial Statements, “Commitments and Contingencies — Litigation” and
“Commitments and Contingencies — Environmental.”
Brazilian Regulatory Citations. In September 2007, the State Environmental Agency of Parana (IAP) assessed seven fines against Duke
Energy International Geracao Paranapenema S.A. (DEIGP), totaling $15 million for failure to comply with reforestation measures allegedly
required by state regulations in Brazil. On January 14, 2010, DEIGP received a notice that one of the fines was subsequently increased, on
grounds that DEIGP is allegedly a repeat offender, which made the total current amount of all IAP assessments $28 million. DEIGP filed an
administrative appeal. Between June and August 2009, three of these fines, in the total amount of $2.5 million, were judged to be valid in the
administrative courts. DEIGP challenged those administrative court rulings, in the Brazilian state court, by filing three judicial actions for
annulment and also requested that its payment obligations be enjoined pending resolution on the merits. In one of the three cases, the court
granted DEIGP’s request for injunction, and subsequently ruled on the merits in favor of DEIGP. The plaintiff will likely appeal. In the second
case, the court granted DEIGP’s request for injunction, and a decision on the merit is pending. In the third case, DEIGP’s request for injunction
was denied; however, DEIGP was granted permission to deposit the total amount of the fine in the court registry and to suspend entry of the
debt in the state tax liability roster.
Additionally, DEIGP was assessed three environmental fines by the Brazilian federal environmental enforcement agency, Brazil Institute of
Environment and Renewable Natural Resources (IBAMA), totaling $266,000 for improper maintenance of existing reforested areas. DEIGP
believes that it has properly maintained all reforested areas and has challenged these assessments.
ITEM 4. MINE SAFETY DISCLOSURES.
This is not applicable for Duke Energy.
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