2011 Severance Plan. In conjunction with the merger with Progress Energy, in November 2011 Duke Energy and Progress Energy offered a voluntary severance plan to certain eligible employees. As this was a voluntary severance plan, all severance benefits offered under this plan are considered special termination benefits under U.S. GAAP. Special termination benefits are measured upon employee acceptance and recorded immediately absent any significant retention period. If a significant retention period exists, the cost of the special termination benefits are recorded ratably over the retention period. Approximately 1,100 employees from Duke Energy and Progress Energy accepted the termination benefits during the voluntary window period, which closed on November 30, 2011. The estimated amount of severance payments associated with this voluntary plan and other severance benefits through 2014, excluding amounts incurred through September 30, 2012, are expected to range from $80 million to $110 million and most of the costs will be charged to Duke Energy Carolinas, Progress Energy Carolinas and Progress Energy Florida.

Additionally, in the third quarter of 2012, a voluntary severance plan was offered to certain Union employees of Duke Energy Ohio. The plan was offered to approximately 330 employees, and the expense associated with this plan is not expected to be material.

Amounts included in the table below represent direct and allocated severance expense recorded by the Duke Energy Registrants, and are recorded in Operation, maintenance, and other within Operating Expenses on the Condensed Consolidated Statements of Operations and Comprehensive Income. The Duke Energy Registrants recorded insignificant amounts for severance expense during the three and nine months ended September 30, 2011.

(in millions)			Three Months Ended September 30, 2012^(a)		Nine Months Ended September 30, 2012^(a)
Duke Energy^(a)		$	146	$	146
Duke Energy Carolinas		$	48	$	48
Duke Energy Ohio		$	15	$	15
Duke Energy Indiana		$	13	$	13

(a)	Includes $16 million of COBRA and healthcare reimbursement expenses and $14 million of accelerated stock award expense.

Amounts included in the table below represent the severance liability for Duke Energy and Duke Energy Carolina's past and on-going severance plans. Amounts for Duke Energy Carolinas do not include allocated expense or cash payments. Amounts for Duke Energy Ohio and Duke Energy Indiana are not material.

(in millions)		Balance at December 31, 2011		Provision / Adjustments^(a)		Cash Reductions		Balance at September 30, 2012
Duke Energy		$	32	$	118	$	(39)	$	111
Duke Energy Carolinas			1		14		(5)		10

(a)	Balance for Duke Energy includes a $12 million severance liability acquired in the merger with Progress Energy.

As part of Duke Energy Carolinas' 2011 rate case, the NCUC approved the recovery of $101 million of previously recorded expenses related to a prior year Voluntary Opportunity Plan. This amount was recorded as a reduction to Operation, maintenance, and other within Operating Expenses on the Condensed Consolidated Statements of Operations and recognized as a Regulatory Asset on the Condensed Consolidated Balance Sheets in 2012.