PROPERTY, PLANT AND EQUIPMENT

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



	December 31, 2016
	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		$	1,501		$	432		$	735		$	393		$	342		$	150		$	106
Plant – Regulated
Electric generation, distribution and transmission	8 - 100	89,864			34,515			37,596			23,683			13,913			4,593			13,160
Natural gas transmission and distribution	12 - 67	7,738			—			—			—			—			2,456			—
Other buildings and improvements	15 - 100	1,692			502			634			293			341			211			197
Plant – Nonregulated
Electric generation, distribution and transmission	5 - 30	4,298			—			—			—			—			—			—
Other buildings and improvements	25 - 35	421			—			—			—			—			—			—
Nuclear fuel		3,572			2,092			1,480			1,480			—			—			—
Equipment	3 - 38	1,941			358			505			378			127			338			156
Construction in process		6,186			2,324			2,708			1,329			1,379			206			396
Other	5 - 40	4,184			904			1,206			863			332			172			226
Total property, plant and equipment^(a)(d)		121,397			41,127			44,864			28,419			16,434			8,126			14,241
Total accumulated depreciation – regulated^(b)(c)(d)		(37,831		)	(14,365		)	(15,212		)	(10,561		)	(4,644		)	(2,579		)	(4,317		)
Total accumulated depreciation – nonregulated^(c)(d)		(1,575		)	—			—			—			—			—			—
Generation facilities to be retired, net		529			—			529			529			—			—			—
Total net property, plant and equipment		$	82,520		$	26,762		$	30,181		$	18,387		$	11,790		$	5,547		$	9,924

(a)

Includes capitalized leases of $1,355 million, $40 million, $288 million, $142 million, $146 million, $81 million and $35 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 $99 million, $9 million and $90 million, respectively, of accumulated amortization of capitalized leases.


(b)	Includes $1,922 million, $1,192 million, $730 million and $730 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 $50 million, $9 million, $19 million and $8 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 $2,591 million and accumulated depreciation of consolidated VIEs of $411 million at Duke Energy.



	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		$	1,391		$	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	25 - 35	410			—			—			—			—			—			—
Nuclear fuel		3,194			1,827			1,367			1,367			—			—			—
Equipment	3 - 38	1,736			368			530			398			132			344			173
Construction in process		4,485			1,860			1,827			1,118			709			180			214
Other	5 - 60	4,008			836			1,180			856			319			153			215
Total property, plant and equipment^(a)(d)		109,967			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)		(1,369		)	—			—			—			—			—			—
Generation facilities to be retired, net		548			—			548			548			—			—			—
Total net property, plant and equipment		$	73,779		$	25,877		$	28,347		$	17,720		$	10,623		$	5,243		$	9,523

(a)

Includes capitalized leases of $1,465 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 in regulated plant. 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 $57 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.

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



	Years Ended December 31,
(in millions)	2016		2015		2014
Duke Energy	$	100	$	98	$	75
Duke Energy Carolinas	38		38		38
Progress Energy	31		24		11
Duke Energy Progress	17		20		10
Duke Energy Florida	14		4		1
Duke Energy Ohio	8		10		10
Duke Energy Indiana	7		6		6

Operating Leases

Duke Energy's Commercial Renewables 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 $216 million, $172 million and $164 million for the years ended December 31, 2016, 2015 and 2014. As of December 31, 2016, renewable energy projects owned by Duke Energy and accounted for as operating leases had a cost basis of $3,127 million and accumulated depreciation of $347 million. These assets are principally classified as nonregulated electric generation and transmission assets.