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Severance

9 Months Ended

Sep. 30, 2012

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure [Text Block]

13. SEVERANCE

In conjunction with the merger, in November 2011, Duke Energy and Progress Energy offered a voluntary severance plan to certain eligible employees. As this is 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 of the combined company, including approximately 650 employees of Progress Energy, accepted the termination benefits during the voluntary window period, which closed on November 30, 2011. The estimated amount of severance payments for Duke Energy 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, PEC and PEF.

Amounts included in the following table represent severance expense recorded by the Progress Energy Registrants during 2012, which is included within O&M expense in the Statements of Operations and Comprehensive Income. The Progress Energy Registrants recorded insignificant amounts for severance expense during 2011.

(in millions)	Three months ended September 30, 2012			Nine months ended September 30, 2012
Progress Energy		$	66		$	66
PEC			42			42
PEF			24			24

Amounts included in the table below represent the severance liability for our past and ongoing severance plans.

(in millions)	Balance at December 31, 2011		Provisions / Adjustments		Cash Reductions		Balance at September 30, 2012
Progress Energy	$	5	$	53	$	(15)	$	43
PEC		5		26		(7)		24
PEF		-		10		(3)		7

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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