SEVERANCE

As part of strategic planning processes launched in 2015, Duke Energy continued to implement targeted cost savings initiatives during 2016 aimed at reducing operations and maintenance expense. The initiatives included efforts to reduce costs through the standardization of processes and systems, leveraging technology and workforce optimization throughout the company.

Also during 2016, Duke Energy and Piedmont announced severance plans covering certain eligible employees whose employment will be involuntarily terminated without cause as a result of Duke Energy's acquisition of Piedmont. These reductions are a part of the synergies expected to be realized with the acquisition. Refer to Note 2 for additional information on the Piedmont acquisition.

As part of the cost savings initiatives and the Piedmont integration, voluntary and involuntary severance benefit costs were accrued for a total of approximately 600 employees in 2016 and 900 employees in 2015. The following table presents the direct and allocated severance and related expenses recorded by the Duke Energy Registrants. Amounts are included within Operation, maintenance and other on the Consolidated Statements of Operations.



			Duke				Duke		Duke		Duke		Duke
	Duke		Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana
Year Ended December 31, 2016	$	118	$	39	$	40	$	23	$	17	$	3	$	7
Year Ended December 31, 2015	142		93		36		28		8		2		6

The table below presents the severance liability for past and ongoing severance plans including the plans described above. Amounts for Duke Energy Indiana and Duke Energy Ohio are not material.



				Duke						Duke			Duke
	Duke			Energy			Progress			Energy			Energy
(in millions)	Energy			Carolinas			Energy			Progress			Florida
Balance at December 31, 2015	$	136		$	78		$	23		$	19		$	4
Provision/Adjustments	110			18			20			11			9
Cash Reductions	(167		)	(83		)	(29		)	(24		)	(5		)
Balance at December 31, 2016	$	79		$	13		$	14		$	6		$	8