Duke Energy 2014 Annual Report Download - page 219

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199
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)
The following tables present the assumptions used for other post-retirement benefi ts accounting.
December 31,
2014 2013 2012(a)
Benefi t Obligations
Discount rate 4.10% 4.70% 4.10%
Net Periodic Benefi t Cost
Discount rate 4.70% 4.10% 4.60% - 5.10%
Expected long-term rate of return on plan assets 6.75% 7.75% 5.00% - 8.00%
Assumed tax rate 35% 35% 35%
(a) For Progress Energy plans, the assumptions used in 2012 to determine net periodic post-retirement benefi t costs refl ect remeasurement as of July 1, 2012, due to the merger between Duke Energy and Progress Energy.
Assumed Health Care Cost Trend Rate
December 31,
2014 2013
Health care cost trend rate assumed for next year 6.75% 8.50%
Rate to which the cost trend is assumed to decline (the ultimate trend rate) 4.75% 5.00%
Year that rate reaches ultimate trend 2023 2021
Sensitivity to Changes in Assumed Health Care Cost Trend Rates
Year Ended December 31, 2014
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
1-Percentage Point Increase
Effect on total service and interest costs $2 $1 $1 $— $1 $— $—
Effect on post-retirement benefi t obligation 36 9 15 8 7 2 4
1-Percentage Point Decrease
Effect on total service and interest costs (2) (1) (1) — (1) — —
Effect on post-retirement benefi t obligation (31) (8) (13) (7) (6) (1) (3)
Expected Benefi t Payments
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Years ending December 31,
2015 $ 77 $ 17 $ 30 $ 16 $ 14 $ 4 $ 10
2016 77 18 30 16 14 4 10
2017 76 18 29 15 14 3 9
2018 74 19 29 15 14 3 9
2019 73 19 29 15 13 3 8
2020 – 2024 332 84 132 70 61 15 35