Asset Retirement Obligations

9 Months Ended

Sep. 30, 2023

Asset Retirement Obligation [Abstract]

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 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, 2023
			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)	$	7,459	$	3,136	$	4,295	$	4,069	$	226	$	—	$	—	$	—
Closure of ash impoundments	4,474		2,065		1,530		1,509		21		77		801		—
Other	300		67		105		44		61		61		41		28
Total ARO	$	12,233	$	5,268	$	5,930	$	5,622	$	308	$	138	$	842	$	28
Less: Current portion	620		238		261		260		1		8		114		—
Total noncurrent ARO	$	11,613	$	5,030	$	5,669	$	5,362	$	307	$	130	$	728	$	28

(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, 2022(a)	$	12,728	$	5,382	$	6,181	$	5,823	$	358	$	154	$	951	$	26

Accretion expense(b)	391		189		178		169		9		5		24		2
Liabilities settled(c)	(494)		(171)		(247)		(196)		(51)		(11)		(66)		—

Revisions in estimates of cash flows(d)	(392)		(132)		(182)		(174)		(8)		(10)		(67)		—
Balance at September 30, 2023	$	12,233	$	5,268	$	5,930	$	5,622	$	308	$	138	$	842	$	28

(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, 2023, 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 and nuclear decommissioning.

(d)The amounts recorded represent the discounted cash flows for estimated closure costs as evaluated on a site-by-site basis. The decreases primarily relate to lower unit costs associated with basin closure, routine maintenance and beneficiation activities, as well as a reduction in monitoring wells needed.

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.