Progress Energy 2010 Annual Report Download - page 72

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
PEC’s and PEF’s ownership interests in the jointly owned
generating facilities are listed below with related
information at December 31:
(in millions) Facility Company Ownership
Interest Plant Investment Accumulated Depreciation Construction Work in ProgressSubsidiary
2010
PEC Mayo 83.83% $798 $294 $8
PEC Harris 83.83% 3,255 1,604 16
PEC Brunswick 81.67% 1,702 939 38
PEC Roxboro Unit 4 87.06% 706 457 22
PEF Crystal River Unit 3 91.78% 901 497 648
PEF Intercession City Unit P11 66.67% 23 11 –
2009
PEC Mayo 83.83% $785 $282 $8
PEC Harris 83.83% 3,207 1,651 28
PEC Brunswick 81.67% 1,681 981 74
PEC Roxboro Unit 4 87.06% 686 449 15
PEF Crystal River Unit 3 91.78% 900 472 510
PEF Intercession City Unit P11 66.67% 23 10 –
In the tables above, 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.
In the tables above, construction work in process for
Crystal River Unit 3 Nuclear Plant (CR3) is not reduced by
the accelerated recovery of qualifying project costs under
the FPSC nuclear cost-recovery rule (see Note 7C).
C. Asset Retirement Obligations
At December 31, 2010 and 2009, our asset retirement
costs included in utility plant related to nuclear
decommissioning of irradiated plant, net of accumulated
depreciation totaled $90 million and $132 million,
respectively. The fair value of funds set aside in the
Utilities’ nuclear decommissioning trust (NDT) funds
for the nuclear decommissioning liability totaled
$1.571 billion and $1.367 billion at December 31, 2010
and 2009, respectively (See Notes 12 and 13). Net NDT
unrealized฀ gains฀ are฀ included฀ in฀ regulatory฀ liabilities฀
(See Note 7A).
Our nuclear decommissioning cost provisions, which
are฀included฀in฀depreciation฀and฀amortization฀expense,฀
were $31 million each in 2010, 2009 and 2008. As
discussed below, PEF has suspended its accrual for
nuclear decommissioning. Management believes that
nuclear decommissioning costs that have been and
will be recovered through rates by PEC and PEF will be
sufficient to provide for the costs of decommissioning.
Expenses฀ recognized฀ for฀ the฀ disposal฀ or฀ removal฀ of฀
utility assets that do not meet the definition of AROs,
which฀ are฀ included฀ in฀ depreciation,฀ amortization฀ and฀
accretion expense, were $87 million, $141 million and
$133 million in 2010, 2009 and 2008, respectively.
The฀ Utilities฀ recognize฀ removal,฀ nonirradiated฀
decommissioning and dismantlement of fossil generation
plant costs in regulatory liabilities on the Consolidated
Balance Sheets (See Note 7A). At December 31, such
costs consisted of:
(in millions) 2010 2009
Removal costs $1,503 $1,536
Nonirradiated decommissioning costs 233 211
Dismantlement costs 121 119
Non-ARO cost of removal $1,857 $1,866