Duke Energy 2015 Annual Report Download - page 142

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PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. •
DUKE ENERGY PROGRESS, LLC • DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
December 31, 2014
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Regulatory Assets
Asset retirement obligations – coal ash $ 1,992 $ 840 $1,152 $ 1,152 $ — $ — $ —
Asset retirement obligations – nuclear and other 1,025 67 730 432 298 — —
Accrued pension and OPEB 2,015 412 812 354 458 132 217
Retired generation facilities 1,659 58 1,545 152 1,393 — 56
Debt fair value adjustment 1,305 — — — — — —
Net regulatory asset related to income taxes 1,144 614 354 141 213 64 111
Hedge costs and other deferrals 628 103 490 217 273 7 28
DSM/EE 330 106 203 193 10 21 —
Grid Modernization 76 — — — — 76 —
Vacation accrual 213 86 46 46 — 6 12
Deferred fuel and purchased power 246 50 182 138 44 9 5
Nuclear deferral 296 141 155 43 112 — —
Post-in-service carrying costs and deferred operating expenses 494 124 121 28 93 21 228
Gasification services agreement buyout 55 — — — — — 55
Transmission expansion obligation 70 — — — — 74 —
MGP 115 — — — — 115 —
Other 494 263 109 66 42 36 66
Total regulatory assets 12,157 2,864 5,899 2,962 2,936 561 778
Less: current portion 1,115 399 491 287 203 49 93
Total noncurrent regulatory assets $11,042 $2,465 $5,408 $ 2,675 $2,733 $ 512 $685
December 31, 2014
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Regulatory Liabilities
Costs of removal $ 5,221 $2,420 $ 1,975 $1,692 $ 283 $ 222 $ 613
Amounts to be refunded to customers 166 — 70 — 70 — 96
Storm reserve 150 25 125 — 125 — —
Accrued pension and OPEB 379 76 121 61 60 19 91
Deferred fuel and purchased power 37 6 23 23 — — 8
Other 444 217 171 127 44 10 42
Total regulatory liabilities 6,397 2,744 2,485 1,903 582 251 850
Less: current portion 204 34 106 71 35 10 54
Total noncurrent regulatory liabilities $ 6,193 $2,710 $ 2,379 $1,832 $ 547 $ 241 $ 796
Descriptions of regulatory assets and liabilities, summarized in the tables
above, as well as their recovery and amortization periods follow. Items are
excluded from rate base unless otherwise noted.
Asset retirement obligations – coal ash. Represents regulatory assets
including deferred depreciation and accretion related to the legal obligation
to close ash basins. The costs are deferred until recovery treatment has been
determined. The recovery period for these costs has yet to be established. Duke
Energy Carolinas, Duke Energy Progress and Duke Energy Ohio earn a debt
return on their expenditures. See Notes 1 and 9 for additional information.
Asset retirement obligations – nuclear and other. Represents
regulatory assets, including deferred depreciation and accretion, related to
legal obligations associated with the future retirement of property, plant and
equipment, excluding amounts related to coal ash. The Asset retirement
obligations relate primarily to decommissioning nuclear power facilities. The
amounts also include certain deferred gains on NDTF investments. The recovery
period for costs related to nuclear facilities runs through the decommissioning
period of each nuclear unit, the latest of which is currently estimated to be
2086. See Notes 1 and 9 for additional information.
Accrued pension and OPEB. Accrued pension and OPEB represent
regulatory assets and liabilities related to each of the Duke Energy Registrants’
respective shares of unrecognized actuarial gains and losses and unrecognized
prior service cost and credit attributable to Duke Energy’s pension plans and
OPEB plans. The regulatory asset or liability is amortized with the recognition
of actuarial gains and losses and prior service cost and credit to net periodic
benefit costs for pension and OPEB plans. See Note 21 for additional detail.