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Progress Energy Annual Report 2006
81
Diversified business depreciation expense was $13 million
for December 31, 2006, and $22 million for December 31,
2005 and 2004.
C. Joint Ownership of Generating Facilities
PEC and PEF hold ownership interests in certain jointly
owned generating facilities. Each is entitled to shares of
the generating capability and output of each unit equal
to their respective ownership interests. Each also pays
its ownership share of additional construction costs,
fuel inventory purchases and operating expenses,
except in certain instances where agreements have
been executed to limit certain joint owners’ maximum
exposure to the additional costs (See Note 21B). The co-
owner of Intercession City Unit P11 has exclusive rights to
the output of the unit during the months of June through
September. PEF has that right for the remainder of the
year. PEC’s and PEF’s ownership interests in the jointly
owned generating facilities are listed below with related
information at December 31:
In the tables below, plant investment and accumulated
depreciation are not reduced by the regulatory
disallowances related to the Shearon Harris Nuclear
Plant (Harris), which are not applicable to the joint owner’s
ownership interest in Harris.
D. Asset Retirement Obligations
At December 31, 2006 and 2005, the asset retirement
costs, included in utility plant, related to nuclear
decommissioning of irradiated plant, net of accumulated
depreciation, totaled $156 million and $168 million,
respectively. The fair value of funds set aside in the
Utilities’ nuclear decommissioning trust funds for the
nuclear decommissioning liability totaled $1.287 billion
and $1.133 billion at December 31, 2006 and 2005,
respectively. Net nuclear decommissioning trust
unrealized gains are included in regulatory liabilities
(See Note 7A).
2006
(in millions)
Subsidiary Facility
Company Ownership
Interest Plant Investment
Accumulated
Depreciation
Construction Work
in Progress
PEC Mayo 83.83% $517 $263 $–
PEC Harris 83.83% 3,159 1,489 18
PEC Brunswick 81.67% 1,632 941 15
PEC Roxboro Unit 4 87.06% 356 163 1
PEF Crystal River Unit 3 91.78% 811 452 76
PEF Intercession City Unit P11 66.67% 23 7 –
2005
(in millions)
Subsidiary Facility
Company Ownership
Interest Plant Investment
Accumulated
Depreciation
Construction Work
in Progress
PEC Mayo 83.83% $518 $255 $1
PEC Harris 83.83% 3,146 1,459 17
PEC Brunswick 81.67% 1,623 921 23
PEC Roxboro Unit 4 87.06% 355 153 10
PEF Crystal River Unit 3 91.78% 808 493 48
PEF Intercession City Unit P11 66.67% 24 4 –
(in millions) 2006 2005
Equipment (3-25 years) $66 $79
Land and mineral rights 16 17
Buildings and plants (5-40 years) 54 66
Rail equipment (3-20 years) –37
Computers, office equipment and software (3-10 years) 22
Construction work in progress 12
Accumulated depreciation (108) (125)
Diversified business property, net $31 $78