PROPERTY, PLANT AND EQUIPMENT

The following tables summarize the property, plant and equipment for Duke Energy and its subsidiary registrants.



	December 31, 2015
	Estimated
	Useful				Duke						Duke			Duke			Duke			Duke
	Life	Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)	(Years)	Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana
Land		$	1,466		$	407		$	719		$	392		$	327		$	118		$	108
Plant – Regulated
Electric generation, distribution and transmission	8 - 100	87,593			33,623			36,422			22,888			13,534			4,429			13,118
Natural gas transmission and distribution	12 - 67	2,322			—			—			—			—			2,322			—
Other buildings and improvements	15 - 100	1,480			477			621			294			322			204			179
Plant – Nonregulated
Electric generation, distribution and transmission	1 - 30	3,348			—			—			—			—			—			—
Other buildings and improvements	5 - 50	2,363			—			—			—			—			—			—
Nuclear fuel		3,194			1,827			1,367			1,367			—			—			—
Equipment	3 - 38	1,791			368			530			398			132			344			173
Construction in process		4,525			1,860			1,827			1,118			709			180			214
Other	2 - 60	4,744			836			1,180			856			319			153			215
Total property, plant and equipment^(a)(d)		112,826			39,398			42,666			27,313			15,343			7,750			14,007
Total accumulated depreciation – regulated^(b)(c)(d)		(35,367		)	(13,521		)	(14,867		)	(10,141		)	(4,720		)	(2,507		)	(4,484		)
Total accumulated depreciation – nonregulated^(c)(d)		(2,298		)	—			—			—			—			—			—
Generation facilities to be retired, net		548			—			548			548			—			—			—
Total net property, plant and equipment		$	75,709		$	25,877		$	28,347		$	17,720		$	10,623		$	5,243		$	9,523

(a)

Includes capitalized leases of $1,470 million, $40 million, $302 million, $144 million, $158 million, $96 million, and $39 million at Duke Energy, Duke Energy Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio, and Duke Energy Indiana, respectively, primarily within Plant - Regulated. The Progress Energy, Duke Energy Progress and Duke Energy Florida amounts are net of $85 million, $7 million and $78 million, respectively, of accumulated amortization of capitalized leases.


(b)	Includes $1,621 million, $976 million, $645 million and $645 million of accumulated amortization of nuclear fuel at Duke Energy, Duke Energy Carolinas, Progress Energy and Duke Energy Progress, respectively.


(c)	Includes accumulated amortization of capitalized leases of $58 million, $11 million, $27 million and $7 million at Duke Energy, Duke Energy Carolinas, Duke Energy Ohio and Duke Energy Indiana, respectively.


(d)	Includes gross property, plant and equipment cost of consolidated VIEs of $2,033 million and accumulated depreciation of consolidated VIEs of $327 million at Duke Energy.



	December 31, 2014
	Estimated
	Useful				Duke						Duke			Duke			Duke			Duke
	Life	Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)	(Years)	Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana
Land		$	1,459		$	403		$	704		$	380		$	324		$	114		$	108
Plant – Regulated
Electric generation, distribution and transmission	2 - 138	82,206			31,751			33,672			20,616			13,056			3,956			11,911
Natural gas transmission and distribution	12 - 67	2,230			—			—			—			—			2,230			—
Other buildings and improvements	9 - 100	1,445			465			607			286			318			200			173
Plant – Nonregulated
Electric generation, distribution and transmission	1- 30	2,380			—			—			—			—			—			—
Other buildings and improvements	5 - 50	2,498			—			—			—			—			—			—
Nuclear fuel		2,865			1,676			1,190			1,190			—			—			—
Equipment	3 - 34	1,762			341			506			388			118			330			166
Construction in process		4,519			2,081			1,215			908			307			97			481
Other	5 - 80	3,497			655			756			439			310			214			195
Total property, plant and equipment^(a)(d)		104,861			37,372			38,650			24,207			14,433			7,141			13,034
Total accumulated depreciation – regulated^(b)(c)(d)		(32,628		)	(12,700		)	(13,506		)	(9,021		)	(4,478		)	(2,213		)	(4,219		)
Total accumulated depreciation – nonregulated^(c)(d)		(2,196		)	—			—			—			—			—			—
Generation facilities to be retired, net		9			—			—			—			—			9			—
Total net property, plant and equipment		$	70,046		$	24,672		$	25,144		$	15,186		$	9,955		$	4,937		$	8,815

(a)

Includes capitalized leases of $1,548 million, $40 million, $315 million, $146 million, $169 million, $98 million, and $30 million at Duke Energy, Duke Energy Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio, and Duke Energy Indiana, respectively, primarily in regulated plant. The Progress Energy, Duke Energy Progress and Duke Energy Florida amounts are net of $72 million, $5 million and $67 million, respectively, of accumulated amortization of capitalized leases.


(b)	Includes $1,408 million, $847 million, $561 million and $561 million of accumulated amortization of nuclear fuel at Duke Energy, Duke Energy Carolinas, Progress Energy and Duke Energy Progress, respectively.


(c)	Includes accumulated amortization of capitalized leases of $52 million, $8 million, $25 million and $6 million at Duke Energy, Duke Energy Carolinas, Duke Energy Ohio and Duke Energy Indiana, respectively.


(d)	Includes gross property, plant and equipment cost of consolidated VIEs of $1,873 million and accumulated depreciation of consolidated VIEs of $257 million at Duke Energy.

The following table presents capitalized interest, which includes the debt component of AFUDC.



	Years Ended December 31,
(in millions)	2015		2014		2013
Duke Energy	$	98	$	75	$	89
Duke Energy Carolinas	38		38		41
Progress Energy	24		11		19
Duke Energy Progress	20		10		16
Duke Energy Florida	4		1		3
Duke Energy Ohio	10		10		11
Duke Energy Indiana	6		6		9

Operating Leases

Duke Energy's Commercial Portfolio segment operates various renewable energy projects and sells the generated output to utilities, electric cooperatives, municipalities, and commercial and industrial customers through long-term contracts. In certain situations, these long-term contracts and the associated renewable energy projects qualify as operating leases. Rental income from these leases is accounted for as Operating Revenues in the Consolidated Statements of Operations. There are no minimum lease payments as all payments are contingent based on actual electricity generated by the renewable energy projects. Contingent lease payments were $172 million, $164 million and $154 million for the years ended December 31, 2015, 2014 and 2013. As of December 31, 2015, renewable energy projects owned by Duke Energy and accounted for as operating leases had a cost basis of $2,455 million and accumulated depreciation of $258 million. These assets are principally classified as nonregulated electric generation and transmission assets.