Duke Energy 2015 Annual Report Download - page 34

PART I
14
• Coal Ash Act, as amended, which establishes regulations regarding the
use and closure of existing ash basins, the disposal of ash at active
coal plants and the handling of surface water impacts from ash basins
in North Carolina.
• CCR, which classifies CCR as nonhazardous waste under RCRA and
establishes requirements regarding landfill design and management
and monitoring of CCR.
See “Other Matters” 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 significant impact on the Duke Energy Registrants’ results of operations,
cash flows or financial 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 Note 5 to
the Consolidated Financial Statements, “Commitments and Contingencies –
Environmental.” Except to the extent discussed in 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 flows or financial position of the Duke
Energy Registrants.
DUKE ENERGY CAROLINAS
Duke Energy Carolinas is a regulated public utility primarily engaged in
the generation, transmission, distribution, and sale of electricity in portions of
North Carolina and South Carolina. Duke Energy Carolinas’ service area covers
approximately 24,000 square miles and supplies electric service to 2.5 million
residential, commercial and industrial customers. For information about Duke
Energy Carolinas’ generating facilities, see Item 2, “Properties.” Duke Energy
Carolinas is subject to the regulatory provisions of the NCUC, PSCSC, NRC
and FERC.
Substantially all of Duke Energy Carolinas’ operations are regulated and
qualify for regulatory accounting. Duke Energy Carolinas operates one reportable
business segment, Regulated Utilities. For additional information regarding
this business segment, including financial information, see Note 3 to the
Consolidated Financial Statements, “Business Segments.”
PROGRESS ENERGY
Progress Energy is a public utility holding company primarily engaged in
the regulated electric utility business and is subject to regulation by the FERC.
Progress Energy conducts operations through its wholly owned subsidiaries,
Duke Energy Progress and Duke Energy Florida. When discussing Progress
Energy’s financial information, it necessarily includes the results of Duke Energy
Progress and Duke Energy Florida.
Substantially all of Progress Energy’s operations are regulated and qualify
for regulatory accounting. Progress Energy operates one reportable business
segment, Regulated Utilities. For additional information regarding this business
segment, including financial information, see Note 3 to the Consolidated
Financial Statements, “Business Segments.”
DUKE ENERGY PROGRESS
Duke Energy Progress is a regulated public utility primarily engaged in
the generation, transmission, distribution and sale of electricity in portions
of North Carolina and South Carolina. Duke Energy Progress’ service area
covers approximately 32,000 square miles, and supplies electric service to
approximately 1.5 million residential, commercial and industrial customers.
For information about Duke Energy Progress’ generating facilities, see Item 2,
“Properties.” Duke Energy Progress is subject to the regulatory provisions of the
NCUC, PSCSC, NRC and FERC.
Substantially all of Duke Energy Progress’ operations are regulated and
qualify for regulatory accounting. Duke Energy Progress operates one reportable
business segment, Regulated Utilities. For additional information regarding
this business segment, including financial information, see Note 3 to the
Consolidated Financial Statements, “Business Segments.”
DUKE ENERGY FLORIDA
Duke Energy Florida is a regulated public utility primarily engaged in
the generation, transmission, distribution, and sale of electricity in portions of
Florida. Duke Energy Florida’s service area covers approximately 13,000 square
miles and supplies electric service to approximately 1.7 million residential,
commercial and industrial customers. For information about Duke Energy
Florida’s generating facilities, see Item 2, “Properties.” Duke Energy Florida is
subject to the regulatory provisions of the FPSC, NRC and FERC.
Substantially all of Duke Energy Florida’s operations are regulated and
qualify for regulatory accounting. Duke Energy Florida operates one reportable
business segment, Regulated Utilities. For additional information regarding
this business segment, including financial information, see Note 3 to the
Consolidated Financial Statements, “Business Segments.”
DUKE ENERGY OHIO
Duke Energy Ohio is a regulated public utility primarily engaged in the
transmission and distribution of electricity in portions of Ohio and Kentucky,
in the generation and sale of electricity in portions of Kentucky, and the
transportation and sale of natural gas in portions of Ohio and Kentucky. Duke
Energy Ohio also conducts competitive auctions for retail electricity supply in
Ohio whereby recovery of the energy price is from retail customers. Operations
in Kentucky are conducted through its wholly owned subsidiary, Duke Energy
Kentucky, Inc. (Duke Energy Kentucky). References herein to Duke Energy Ohio
include Duke Energy Ohio and its subsidiaries, unless otherwise noted. Duke
Energy Ohio is subject to the regulatory provisions of the PUCO, KPSC and FERC.
Duke Energy Ohio’s service area covers approximately 3,000 square miles
and supplies electric service to approximately 840,000 residential, commercial
and industrial customers and provides transmission and distribution services
for natural gas to approximately 525,000 customers. For information about Duke
Energy Ohio’s generating facilities, see Item 2, “Properties.”
On April 2, 2015, Duke Energy completed the sale of its nonregulated
Midwest generation business, which sold power into wholesale energy markets,
to a subsidiary of Dynegy. For further information about the sale of the Midwest
Generation business, refer to Note 2 to the Consolidated Financial Statements,
“Acquisitions and Dispositions.”
Substantially all of Duke Energy Ohio’s operations that remain after the
sale qualify for regulatory accounting.
Business Segments
Duke Energy Ohio had two reportable operating segments, Regulated
Utilities and Commercial Portfolio, prior to the sale of the nonregulated Midwest
generation business. As a result of the sale Commercial Portfolio no longer
qualifies as a Duke Energy Ohio reportable operating segment. Therefore, for
periods subsequent to the sale, beginning in the second quarter of 2015, all
of the remaining assets and related results of operations previously presented
in Commercial Portfolio are presented in Regulated Utilities and Other. For
additional information on this business segment, including financial information,
see Note 3 to the Consolidated Financial Statements, “Business Segments.”