XML 77 R31.htm IDEA: XBRL DOCUMENT v2.4.0.8
Commitments and Contingencies (Table)
6 Months Ended
Jun. 30, 2014
Commitments and Contingencies Disclosure [Abstract]  
Accrual For Environmental Loss Contingencies
The following table contains information regarding reserves for probable and estimable costs related to the various environmental sites. These reserves are recorded in Other within Deferred Credits and Other Liabilities on the Condensed Consolidated Balance Sheets.
 
Six Months Ended June 30, 2014
(in millions)
Duke Energy

 
Duke Energy Carolinas

 
Progress Energy

 
Duke Energy Progress

 
Duke Energy Florida

 
Duke Energy Ohio

 
Duke Energy Indiana

Balance at beginning of period
$
79

 
$
11

 
$
27

 
$
8

 
$
19

 
$
27

 
$
7

Provisions / adjustments
9

 
(1
)
 
4

 
3

 
1

 
5

 

Cash reductions
(6
)
 

 
(4
)
 
(2
)
 
(2
)
 
(1
)
 

Balance at end of period
$
82

 
$
10

 
$
27

 
$
9

 
$
18

 
$
31

 
$
7

 
Six Months Ended June 30, 2013
(in millions)
Duke Energy

 
Duke Energy Carolinas

 
Progress Energy

 
Duke Energy Progress

 
Duke Energy Florida

 
Duke Energy Ohio

 
Duke Energy Indiana

Balance at beginning of period
$
75

 
$
12

 
$
33

 
$
14

 
$
19

 
$
15

 
$
8

Provisions / adjustments
4

 

 
4

 
1

 
3

 
(1
)
 
1

Cash reductions
(12
)
 

 
(3
)
 
(1
)
 
(2
)
 
(6
)
 
(2
)
Balance at end of period
$
67

 
$
12

 
$
34

 
$
14

 
$
20

 
$
8

 
$
7

Schedule of Additional Possible Losses in Excess of Recorded Environmental Reserves
Additional losses in excess of recorded reserves that could be incurred for the stages of investigation, remediation, and monitoring for environmental sites that have been evaluated at this time are presented in the table below.
(in millions)
 
Duke Energy
$
90

Duke Energy Carolinas
25

Progress Energy
9

Duke Energy Progress
2

Duke Energy Florida
7

Duke Energy Ohio
51

Duke Energy Indiana
5

Estimated Costs of Potential Approaches To Coal Ash Management [Table Text Block]
On April 22, 2014, a representative of Duke Energy appeared before the Environmental Review Commission of the North Carolina General Assembly and outlined cost estimates for a range of ash handling and ash basin closure options. The table below summarizes estimated costs of various potential approaches to ash management for North Carolina ash basins. These amounts represent a rough order of magnitude and are not detailed engineering grade estimates. The estimates assume coal ash will retain a non-hazardous designation by the EPA and exclude financing costs. Any ultimate activities and resultant costs will be dependent upon state and federal environmental requirements.
(in billions)
 
Range
Baseline assumptions(a)
 
$
2.0

-
$
2.5

Estimated additional costs related to full excavation(b)
 
4.0

-
5.5

Estimated additional costs related to all-dry systems(c)
 
1.0

-
2.0

Total range of costs(d)
 
$
2.0

-
$
10.0


(a)
Assumes (i) hybrid cap in place closure for ash basins at ten coal plants, (ii) excavation and relocation of ash to lined structural fills or landfills for the retired Dan River, Riverbend and Sutton coal plants, (iii) dry fly ash conversion at the Asheville units and Cliffside Unit 5, (iv) continued structural fill disposal for the Asheville coal plant, and (v) dry bottom ash handling conversions and fly ash reliability improvements. Includes costs for actions noted in the March 12, 2014 letter to the governor of North Carolina and existing plans to close ash basins.
(b)
Represents estimated additional costs to excavate and relocate ash to lined landfills for the ten plants under hybrid cap in place closure in the baseline assumptions.
(c)
Represents estimated additional costs to convert all active coal plants to all-dry pneumatic bottom ash handling systems and thermally-driven evaporation of other process water.
(d)
On average, the allocation of these estimates is approximately 65 percent to Duke Energy Carolinas and 35 percent to Duke Energy Progress. However, this allocation could vary significantly based on site-specific compliance actions.
Schedule of Litigation Reserves and Related Insurance Recoveries
The Duke Energy Registrants are involved in other legal, tax and regulatory proceedings arising in the ordinary course of business, some of which involve significant amounts. The Duke Energy Registrants believe the final disposition of these proceedings will not have a material effect on their results of operations, cash flows or financial position. The table below presents recorded reserves based on management’s best estimate of probable loss for legal matters discussed above, excluding asbestos related reserves. Reserves are classified on the Condensed Consolidated Balance Sheets in Other within Deferred Credits and Other Liabilities and Other within Current Liabilities. The reasonably possible range of loss for all non-asbestos related matters in excess of recorded reserves is not material.
(in millions)
June 30, 2014

 
December 31, 2013

Reserves for Legal Matters
 
 
 
Duke Energy
$
197

 
$
204

Progress Energy
73

 
78

Duke Energy Progress
10

 
10

Duke Energy Florida
42

 
43