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Property, Plant and Equipment
12 Months Ended
Dec. 31, 2017
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment
PROPERTY, PLANT AND EQUIPMENT
The following tables summarize the property, plant and equipment for Duke Energy and its subsidiary registrants.
 
December 31, 2017
 
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

 
Piedmont
Land
 
 
$
1,559

 
$
467

 
$
767

 
$
424

 
$
343

 
$
134

 
$
111

 
$
41

Plant – Regulated
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Electric generation, distribution and transmission
8-100
 
93,687

 
35,657

 
39,419

 
24,502

 
14,917

 
4,870

 
13,741

 

Natural gas transmission and distribution
12-80
 
8,292

 

 

 

 

 
2,559

 

 
5,733

Other buildings and improvements
15-100
 
1,936

 
647

 
652

 
316

 
336

 
243

 
240

 
154

Plant – Nonregulated
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Electric generation, distribution and transmission(a)
5-30
 
4,273

 

 

 

 

 

 

 

Other buildings and improvements
25-35
 
465

 

 

 

 

 

 

 

Nuclear fuel
 
 
3,680

 
2,120

 
1,560

 
1,560

 

 

 

 

Equipment
3-55
 
2,122

 
402

 
555

 
416

 
139

 
348

 
169

 
266

Construction in process
 
 
6,995

 
2,614

 
3,059

 
1,434

 
1,625

 
350

 
416

 
231

Other
3-40
 
4,498

 
1,032

 
1,311

 
931

 
370

 
228

 
271

 
300

Total property, plant and equipment(b)(e)
 
 
127,507

 
42,939

 
47,323

 
29,583

 
17,730

 
8,732

 
14,948

 
6,725

Total accumulated depreciation – regulated(c)(d)(e)
 
 
(39,742
)
 
(15,063
)
 
(15,857
)
 
(10,903
)
 
(4,947
)
 
(2,691
)
 
(4,662
)
 
(1,479
)
Total accumulated depreciation – nonregulated(d)(e)
 
 
(1,795
)
 

 

 

 

 

 

 

Generation facilities to be retired, net
 
 
421

 

 
421

 
421

 

 

 

 

Total net property, plant and equipment
 
 
$
86,391


$
27,876


$
31,887


$
19,101


$
12,783


$
6,041

 
$
10,286

 
$
5,246

(a)
Includes a pretax impairment charge of $58 million on a wholly owned non-contracted wind project. See discussion below.
(b)
Includes capitalized leases of $1,294 million, $81 million, $272 million, $139 million, $133 million, $80 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 $114 million, $11 million and $103 million, respectively, of accumulated amortization of capitalized leases.
(c)
Includes $2,113 million, $1,283 million, $831 million and $831 million of accumulated amortization of nuclear fuel at Duke Energy, Duke Energy Carolinas, Progress Energy and Duke Energy Progress, respectively.
(d)
Includes accumulated amortization of capitalized leases of $57 million, $11 million, $21 million and $9 million at Duke Energy, Duke Energy Carolinas, Duke Energy Ohio and Duke Energy Indiana, respectively.
(e)
Includes gross property, plant and equipment cost of consolidated VIEs of $3,941 million and accumulated depreciation of consolidated VIEs of $598 million at Duke Energy.
 
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

 
Piedmont
Land
 
 
$
1,501

 
$
432

 
$
735

 
$
393

 
$
342

 
$
150

 
$
106

 
$
39

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

 

 
5,282

Other buildings and improvements
15-100
 
1,692

 
502

 
634

 
293

 
341

 
211

 
197

 
148

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

 
260

Construction in process
 
 
6,186

 
2,324

 
2,708

 
1,329

 
1,379

 
206

 
396

 
210

Other
5-40
 
4,184

 
904

 
1,206

 
863

 
332

 
172

 
226

 
235

Total property, plant and equipment(a)(d)
 
 
121,397

 
41,127

 
44,864

 
28,419

 
16,434

 
8,126

 
14,241

 
6,174

Total accumulated depreciation – regulated(b)(c)(d)
 
 
(37,831
)
 
(14,365
)
 
(15,212
)
 
(10,561
)
 
(4,644
)
 
(2,579
)
 
(4,317
)
 
(1,360
)
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

 
$
4,814

(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.
During the year ended December 31, 2017, Duke Energy recorded a pretax impairment charge of $69 million on a wholly owned non-contracted wind project. The impairment was recorded within Impairment charges on Duke Energy’s Consolidated Statements of Operations. $58 million of the impairment related to property, plant and equipment and $11 million of the impairment related to a net intangible asset; see Note 11 for additional information. The charge represents the excess carrying value over the estimated fair value of the project, which was based on a Level 3 Fair Value measurement that was determined from the income approach using discounted cash flows. The impairment was primarily due to the non-contracted wind project being located in a market that has experienced continued declining market pricing during 2017 and declining long-term forecasted energy and capacity prices, driven by low natural gas prices, additional renewable generation placed in service and lack of significant load growth.
The following tables present capitalized interest, which includes the debt component of AFUDC.
 
Years Ended December 31,
(in millions)
2017

 
2016

 
2015

Duke Energy
$
128

 
$
100

 
$
98

Duke Energy Carolinas
45

 
38

 
38

Progress Energy
45

 
31

 
24

Duke Energy Progress
21

 
17

 
20

Duke Energy Florida
24

 
14

 
4

Duke Energy Ohio
10

 
8

 
10

Duke Energy Indiana
9

 
7

 
6


 
Year Ended
 
Two Months Ended
 
Years Ended October 31,
(in millions)
December 31, 2017
 
December 31, 2016
 
2016

 
2015

Piedmont
$
12

 
$
2

 
$
12

 
$
11


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 $262 million, $216 million, and $172 million for the years ended December 31, 2017, 2016 and 2015. As of December 31, 2017, renewable energy projects owned by Duke Energy and accounted for as operating leases had a cost basis of $3,153 million and accumulated depreciation of $459 million. These assets are principally classified as nonregulated electric generation and transmission assets.