Duke Energy 2012 Annual Report Download - page 37

PART I
17
ENVIRONMENTAL MATTERS
The Duke Energy Registrants are subject to federal, state and local
laws and regulations with regard to air and water quality, hazardous and
solid waste disposal and other environmental matters. Duke Energy is also
subject to international laws and regulations with regard to air and water
quality, hazardous and solid waste disposal and other environmental matters.
Environmental laws and regulations affecting the Duke Energy Registrants
include, but are not limited to:
• The Clean Air Act (CAA), as well as state laws and regulations impacting
air emissions, including State Implementation Plans related to existing
and new national ambient air quality standards for ozone and particulate
matter. Owners and/or operators of air emission sources are responsible
for obtaining permits and for annual compliance and reporting.
• The Clean Water Act which requires permits for facilities that discharge
wastewaters into the environment.
• The Comprehensive Environmental Response, Compensation and
Liability Act, which can require any individual or entity that currently
owns or in the past may have owned or operated a disposal site, as
well as transporters or generators of hazardous substances sent to a
disposal site, to share in remediation costs.
• The Solid Waste Disposal Act, as amended by the Resource
Conservation and Recovery Act, which requires certain solid
wastes, including hazardous wastes, to be managed pursuant to a
comprehensive regulatory regime.
• The National Environmental Policy Act, which requires federal agencies
to consider potential environmental impacts in their decisions, including
siting approvals.
See “Other Issues” section of Management’s Discussion and Analysis of
Financial Condition and Results of Operations for a discussion about potential
Global Climate Change legislation and the potential impacts such legislation
could have on the Duke Energy Registrants’ operations. Additionally, other
recently passed and potential future environmental laws and regulations could
have a signifi cant impact on the Duke Energy Registrants’ results of operations,
cash fl ows or fi nancial position. However, if and when such laws and regulations
become effective, the Duke Energy Registrants will seek appropriate regulatory
recovery of costs to comply within its regulated operations.
For more information on environmental matters involving the Duke
Energy Registrants, including possible liability and capital costs, see Notes 4
and 5 to the Consolidated Financial Statements, “Regulatory Matters,” and
“Commitments and Contingencies—Environmental,” respectively. Except
to the extent discussed in Note 4 to the Consolidated Financial Statements,
“Regulatory Matters,” and Note 5 to the Consolidated Financial Statements,
“Commitments and Contingencies,” compliance with current international,
federal, state and local provisions regulating the discharge of materials into the
environment, or otherwise protecting the environment, is incorporated into the
routine cost structure of our various business segments and is not expected to
have a material adverse effect on the competitive position, consolidated results
of operations, cash fl ows or fi nancial position of the Duke Energy Registrants.
Duke Energy Subsidiary Registrants
Duke Energy Carolinas
Duke Energy Carolinas generates, transmits, distributes and sells
electricity in central and western North Carolina and western South Carolina.
Duke Energy Carolinas is subject to the regulatory provisions of the NCUC, the
PSCSC, the NRC and FERC. Duke Energy Carolinas operates one reportable
business segment, Franchised Electric, which generates, transmits, distributes
and sells electricity. Substantially all of Franchised Electric operations are
regulated and qualify for regulatory accounting treatment. For additional
information regarding this business segment, including fi nancial information,
see Note 3 to the Consolidated Financial Statements, “Business Segments.”
Duke Energy Carolinas’ service area covers approximately 24,000 square
miles and supplies electric service to 2.4 million residential, commercial and
industrial customers. See Item 2. “Properties” for further discussion of Duke
Energy Carolinas’ generating facilities, transmission and distribution.
The remainder of Duke Energy Carolinas’ operations is presented as Other.
Although it is not considered a business segment, Other primarily includes
certain governance costs allocated by its parent, Duke Energy.
Progress Energy
Progress Energy, Inc. is a public utility holding company primarily engaged
in the regulated electric utility business. Headquartered in Raleigh, North
Carolina, it owns, directly or indirectly, all of the outstanding common stock of
its utility subsidiaries, Progress Energy Carolinas and Progress Energy Florida.
When discussing Progress Energy’s fi nancial information, it necessarily includes
the results of Progress Energy Carolinas and Progress Energy Florida.
Progress Energy is subject to the regulatory provisions of the NCUC, the
PSCSC, the FPSC, the NRC and the FERC. Progress Energy operates in one
reportable segment, Franchised Electric, which generates, transmits, distributes
and sells electricity in portions of North Carolina, South Carolina and Florida.
Substantially all of Franchised Electric operations are regulated and qualify
for regulatory accounting treatment. For additional information regarding
this business segment, including fi nancial information, see Note 3 to the
Consolidated Financial Statements, “Business Segments.”
The remainder of Progress Energy’s operations is presented as Other.
Although it is not considered a business segment, Other primarily includes
certain governance costs allocated by its parent, Duke Energy.
Progress Energy Carolinas
Progress Energy Carolinas is a regulated public utility founded in North
Carolina in 1908 and is primarily engaged in the generation, transmission,
distribution and sale of electricity in portions of North and South Carolina.
For information about Progress Energy Carolinas’ generating plants, see
Item 2, “Properties.” Progress Energy Carolinas is subject to the regulatory
provisions of the NCUC, the PSCSC, the NRC and FERC. Progress Energy
Carolinas operates one reportable business segment, Franchised Electric,
which generates, transmits, distributes and sells electricity. Substantially
all of Franchised Electric operations are regulated and qualify for regulatory
accounting treatment. For additional information regarding this business
segment, including fi nancial information, see Note 3 to the Consolidated
Financial Statements, “Business Segments.”
Progress Energy Carolinas’ service area covers approximately
34,000 square miles, including a substantial portion of the coastal plain of
North Carolina extending from the Piedmont to the Atlantic coast between
the Pamlico River and the South Carolina border, the lower Piedmont section
of North Carolina, an area in western North Carolina in and around the city
of Asheville and an area in the northeastern portion of South Carolina. At
December 31, 2012, Progress Energy Carolinas was providing electric services
to approximately 1.5 million residential, commercial and industrial customers.
The remainder of Progress Energy Carolinas’ operations is presented
as Other. Although it is not considered a business segment, Other primarily
includes certain governance costs allocated by its ultimate parent, Duke Energy.
Progress Energy Florida
Progress Energy Florida is a regulated public utility founded in Florida in
1899 and is primarily engaged in the generation, transmission, distribution and
sale of electricity in portions of Florida. For information about Progress Energy
Florida’s generating plants, see Item 2, “Properties.” Progress Energy Florida is
subject to the regulatory provisions of the FPSC, the NRC and FERC. Progress