XML 80 R15.htm IDEA: XBRL DOCUMENT v3.19.3
Asset Retirement Obligations
 9 Months Ended
Sep. 30, 2019
Asset Retirement Obligation [Abstract]  
Asset Retirement Obligations ASSET RETIREMENT OBLIGATIONS
The Duke Energy Registrants record AROs when there is a legal obligation to incur retirement costs associated with the retirement of a long-lived asset and the obligation can be reasonably estimated. Actual closure costs incurred could be materially different from current estimates that form the basis of the recorded AROs.
The following table presents the AROs recorded on the Condensed Consolidated Balance Sheets.
 
September 30, 2019
 
 
 
Duke

 
 
 
Duke

 
Duke

 
Duke

 
Duke

 
 
 
Duke

 
Energy

 
Progress

 
Energy

 
Energy

 
Energy

 
Energy

 
 
(in millions)
Energy

 
Carolinas

 
Energy

 
Progress

 
Florida

 
Ohio

 
Indiana

 
Piedmont

Decommissioning of nuclear power facilities(a)
$
5,789

 
$
2,435

 
$
3,295

 
$
2,769

 
$
526

 
$
—

 
$
—

 
$
—

Closure of ash impoundments
6,486

 
2,917

 
2,722

 
2,707

 
15

 
43

 
804

 
—

Other
326

 
46

 
71

 
38

 
33

 
42

 
20

 
20

Total ARO
$
12,601

 
$
5,398

 
$
6,088

 
$
5,514

 
$
574

 
$
85

 
$
824

 
$
20

Less: current portion
861

 
214

 
478

 
476

 
2

 
3

 
165

 
—

Total noncurrent ARO
$
11,740


$
5,184


$
5,610


$
5,038


$
572


$
82


$
659

 
$
20

(a)    Duke Energy amount includes purchase accounting adjustments related to the merger with Progress Energy.
ARO Liability Rollforward
The following table presents the change in liability associated with AROs for the Duke Energy Registrants.
 
 
 
Duke

 
 
 
Duke

 
Duke

 
Duke

 
Duke

 
 
 
Duke

 
Energy

 
Progress

 
Energy

 
Energy

 
Energy

 
Energy

 
 
(in millions)
Energy

 
Carolinas

 
Energy

 
Progress

 
Florida

 
Ohio

 
Indiana

 
Piedmont

Balance at December 31, 2018(a)
$
10,467

 
$
3,949

 
$
5,411

 
$
4,820

 
$
591

 
$
93

 
$
722

 
$
19

Accretion expense(b)
377

 
173

 
190

 
171

 
19

 
3

 
21

 
1

Liabilities settled(c)
(691
)
 
(276
)
 
(375
)
 
(341
)
 
(34
)
 
(9
)
 
(32
)
 
—

Revisions in estimates of cash flows(d)
2,448

 
1,552

 
862

 
864

 
(2
)
 
(2
)
 
113

 
—

Balance at September 30, 2019
$
12,601

 
$
5,398

 
$
6,088

 
$
5,514

 
$
574

 
$
85

 
$
824

 
$
20

(a)
Primarily relates to decommissioning nuclear power facilities, closure of ash impoundments, asbestos removal, closure of landfills at fossil generation facilities, retirement of natural gas mains and removal of renewable energy generation assets.
(b)
For the nine months ended September 30, 2019, substantially all accretion expense relates to Duke Energy's regulated operations and has been deferred in accordance with regulatory accounting treatment.
(c)
Primarily relates to ash impoundment closures.
(d)
Primarily relates to increases in closure estimates for certain ash impoundments as a result of the NCDEQ's April 1 Order. See Note 4 for more information. The incremental amount recorded represents the discounted cash flows for estimated closure costs based upon the probability weightings of the potential closure methods as evaluated on a site-by-site basis.
Asset retirement costs associated with the AROs for operating plants and retired plants are included in Net property, plant and equipment and Regulatory assets within Other Noncurrent Assets, respectively, on the Condensed Consolidated Balance Sheets.
Nuclear Decommissioning Trust Funds
Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida each maintain NDTFs that are intended to pay for the decommissioning costs of their respective nuclear power plants. The following table presents the fair value of NDTF assets legally restricted for purposes of settling AROs associated with nuclear decommissioning. Duke Energy Florida is actively decommissioning Crystal River Unit 3 and was granted an exemption from the NRC, which allows for use of the NDTF for all aspects of nuclear decommissioning. The entire balance of Duke Energy Florida's NDTF may be applied toward license termination, spent fuel and site restoration costs incurred to decommission Crystal River Unit 3 and is excluded from the table below. See Note 12 for additional information related to the fair value of the Duke Energy Registrants' NDTFs.
(in millions)
September 30, 2019
 
December 31, 2018
Duke Energy
$
6,403

 
$
5,579

Duke Energy Carolinas
3,614

 
3,133

Duke Energy Progress
2,789

 
2,446