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Asset Retirement Obligations
 12 Months Ended
Dec. 31, 2013
Asset Retirement Obligation [Abstract]  
Asset Retirement Obligations

9. Asset Retirement Obligations

Asset retirement obligations recognized by Duke Energy Carolinas, Progress Energy, Duke Energy Progress and Duke Energy Florida relate primarily to decommissioning nuclear power facilities, asbestos removal and closure of landfills at fossil generation facilities. Asset retirement obligations at Duke Energy Ohio relate primarily to the retirement of gas mains, asbestos removal and closure of landfills at fossil generation facilities. Asset retirement obligations at Duke Energy Indiana relate primarily to obligations associated with asbestos removal and closure of landfills at fossil generation facilities. Duke Energy also has asset retirement obligations related to the removal of renewable energy generation assets in addition to the above items. Certain of the Duke Energy Registrants' assets have an indeterminate life, such as transmission and distribution facilities, and thus the fair value of the retirement obligation is not reasonably estimable. A liability for these asset retirement obligations will be recorded when a fair value is determinable.

The following table presents changes in the liability associated with asset retirement obligations.

                      
(in millions)Duke Energy Duke Energy Carolinas Progress Energy Duke Energy Progress Duke Energy Florida Duke Energy Ohio Duke Energy Indiana
Balance at December 31, 2011$ 1,936 $ 1,846 $ 1,265 $ 896 $ 369 $ 27 $ 43
Acquisitions(a)  3,062   —   —   —   —   —   —
Accretion expense(b)  173   118   86   64   22   1   1
Liabilities settled  (15)   (3)   (2)   (2)   —   —   (10)
Revisions in estimates of cash flows(c)  (4)   (2)   234   —   234   —   (1)
Liabilities incurred in the current year(d)  24   —   837   698   139   —   4
Balance at December 31, 2012(e)  5,176   1,959   2,420   1,656   764   28   37
Acquisitions  4   —   —   —   —   —   —
Accretion expense(b)  239   122   113   80   33   2   —
Liabilities settled  (12)   —   (12)   —   (12)   —   —
Revisions in estimates of cash flows(f)  (449)   (487)   49   1   48   (2)   (7)
Balance at December 31, 2013(e)$ 4,958 $ 1,594 $ 2,570 $ 1,737 $ 833 $ 28 $ 30
                      
(a)Represents asset retirement obligations resulting from the merger with Progress Energy. See Note 2 for additional information.
(b)Substantially all accretion expense for the years ended December 31, 2013 and 2012 relates to Duke Energy’s regulated electric operations and has been deferred in accordance with regulatory accounting treatment.
(c)For Progress Energy and Duke Energy Florida, the amounts relate to the retirement of Crystal River Unit 3.
(d)For Progress Energy, Duke Energy Progress and Duke Energy Florida, amounts primarily relate to spent nuclear fuel disposal recorded in the third quarter of 2012 to conform to Duke Energy's assumptions for nuclear asset retirement obligations.
(e)Balances at December 31, 2013 and 2012, include $8 million and $7 million, respectively, reported in Other current liabilities on the Consolidated Balance Sheets at Duke Energy, Progress Energy and Duke Energy Progress.
(f)Amounts for Duke Energy, Duke Energy Carolinas and Duke Energy Florida primarily relate to the site-specific nuclear decommissioning cost studies completed in 2013.
                      
                      

The Duke Energy Registrants' regulated operations accrue costs of removal for property that does not have an associated legal retirement obligation based on regulatory orders from state commissions. These costs of removal are recorded as a regulatory liability in accordance with regulatory accounting treatment. The Duke Energy Registrants do not accrue the estimated cost of removal for any nonregulated assets. See Note 4 for the estimated cost of removal for assets without an associated legal retirement obligation, which are included in Regulatory liabilities on the Consolidated Balance Sheets.

Nuclear Decommissioning Costs

Use of the NDTF investments are restricted to nuclear decommissioning activities. The NDTF investments are managed and invested in accordance with applicable requirements of various regulatory bodies, including the NRC, FERC, NCUC, PSCSC, FPSC and the Internal Revenue Service (IRS). The fair value of assets legally restricted for purposes of settling asset retirement obligations associated with nuclear decommissioning are $4,769 million and $2,477 million for Duke Energy and Duke Energy Carolinas at December 31, 2013, respectively, and $3,941 million and $2,053 million for Duke Energy and Duke Energy Carolinas at December 31, 2012, respectively. The NDTF balances for Progress Energy, Duke Energy Progress and Duke Energy Florida represent the fair value of assets legally restricted for purposes of settling asset retirement obligations associated with nuclear decommissioning. The NCUC, PSCSC and FPSC require updated cost estimates for decommissioning nuclear plants every five years.

The following table summarizes information about nuclear decommissioning cost studies.

         
(in millions)Annual Funding Requirement Decommissioning Costs(a)(b) Year of Cost Study
Duke Energy Carolinas$ 21 $ 3,420 2013
Duke Energy Progress  14   3,000 2009
Duke Energy Florida  ―   1,083 2013
         
(a)Represents cost per the most recent site-specific nuclear decommissioning cost studies, including costs to decommission plant components not subject to radioactive contamination.
(b)Includes the Duke Energy Registrants' ownership interest in jointly owned reactors. Other joint owners are responsible for decommissioning costs related to their interest in the reactors.
         

Nuclear Operating Licenses

Operating licenses for nuclear units are subject to extension. The following table includes the current expiration of nuclear operating licenses.

 

    
Unit Year of Expiration
Duke Energy Carolinas  
Catawba Unit 1 2043
Catawba Unit 2 2043
McGuire Unit 1 2041
McGuire Unit 2 2043
Oconee Unit 1 2033
Oconee Unit 2 2033
Oconee Unit 3 2034
Duke Energy Progress  
Brunswick Unit 1 2036
Brunswick Unit 2 2034
Harris 2046
Robinson 2030
Duke Energy Florida  
Crystal River Unit 3(a) 2016
    
(a)Duke Energy Florida has requested the NRC terminate the Crystal River Unit 3 operating license as a result of the retirement of the unit.