Duke Energy 2013 Annual Report Download - page 142

124
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. •
DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
Coverage continues at 100 percent of the weekly limits for 52 weeks and
80 percent of the weekly limits for the next 110 weeks.
The Catawba units are insured for up to $4 million per week. The McGuire
units are insured for up to $4 million per week. The Oconee units are insured for
up to $3 million per week. The Brunswick units are insured for up to $3 million
per week. The Harris unit is insured for up to $3 million per week. The Robinson
unit is insured for up to $2 million per week. The accidental outage policy limit
is $490 million for McGuire and Catawba, $378 million for Oconee, $406 million
for Brunswick, $364 million for Harris, and $308 million for Robinson.
NEIL sublimits the accidental outage recovery to the rst 104 weeks
of coverage not to exceed $328 million from non-nuclear accidental
property damage.
Potential Retroactive Premium Assessments
In the event of NEIL losses, NEIL’s board of directors may assess member
companies retroactive premiums of amounts up to 10 times their annual
premiums for up to six years after a loss. The current potential maximum
assessments for Duke Energy Carolinas are $42 million for primary property
insurance, $36 million for excess property insurance and $29 million for
accidental outage insurance. The current potential maximum assessments
for Duke Energy Progress are $33 million for primary property insurance,
$32 million for excess property insurance and $14 million for accidental outage
insurance. The current potential maximum assessments for Duke Energy Florida
are $6 million for primary property insurance and $4 million for excess property
insurance.
The maximum assessment amounts include 100 percent of Duke
Energy Carolinas’, Duke Energy Progress’, and Duke Energy Florida’s potential
obligations to NEIL for their share of jointly owned reactors. However, the other
joint owners of the jointly owned reactors are obligated to assume their pro rata
share of liability for retrospective premiums and other premium assessments
resulting from the Price-Anderson Act’s excess secondary nancial protection
program of risk pooling, or from the NEIL policies.
ENVIRONMENTAL
Duke Energy is subject to international, federal, state, and local
regulations regarding air and water quality, hazardous and solid waste disposal,
and other environmental matters. The Subsidiary Registrants are subject to
federal, state, and local regulations regarding air and water quality, hazardous
and solid waste disposal and other environmental matters. These regulations
can be changed from time to time, imposing new obligations on the Duke Energy
Registrants.
The following environmental matters impact all of the Duke
Energy Registrants.
Remediation Activities
The Duke Energy Registrants are responsible for environmental
remediation at various contaminated sites. These include some properties
that are part of ongoing operations and sites formerly owned or used by Duke
Energy entities. These sites are in various stages of investigation, remediation,
and monitoring. Managed in conjunction with relevant federal, state, and
local agencies, activities vary with site conditions and locations, remediation
requirements, complexity, and sharing of responsibility. If remediation activities
involve joint and several liability provisions, strict liability, or cost recovery
or contribution actions, the Duke Energy Registrants could potentially be held
responsible for contamination caused by other potentially responsible parties,
and may also benet from insurance policies or contractual indemnities that
cover some or all cleanup costs. Liabilities are recorded when losses become
probable and are reasonably estimable. The total costs that may be incurred
cannot be estimated because the extent of environmental impact, allocation
among potentially responsible parties, remediation alternatives, and/or
regulatory decisions has not yet been determined. Additional costs associated
with remediation activities are likely to be incurred in the future and could be
signicant. Costs are typically expensed as Operation, maintenance and other
in the Consolidated Statements of Operations unless regulatory recovery of the
costs is deemed probable.
The following table contains information regarding reserves for probable
and estimable costs related to the various environmental sites. These reserves
are recorded in Other within Deferred Credits and Other Liabilities on the
Consolidated Balance Sheets.
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Balance at December 31, 2010 $ 88 $13 $ 35 $12 $ 23 $ 50 $11
Provisions / adjustments 6 — 10 1 9 5 1
Cash reductions (33) (1) (22) (2) (20) (27) (3)
Balance at December 31, 2011 61 12 23 11 12 28 9
Provisions / adjustments 39 1 19 5 14 5 3
Cash reductions (25) (1) (9) (2) (7) (18) (4)
Balance at December 31, 2012 75 12 33 14 19 15 8
Provisions / adjustments 26 — 4 (1) 5 20 1
Cash reductions (22) (1) (10) (5) (5) (8) (2)
Balance at December 31, 2013 $ 79 $ 11 $ 27 $ 8 $ 19 $ 27 $ 7