PROPERTY, PLANT AND EQUIPMENT

The following tables summarize the property, plant and equipment for Duke Energy and its subsidiary registrants.



	December 31, 2018
	Estimated
	Useful				Duke						Duke			Duke			Duke			Duke
	Life	Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)	(Years)	Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Land		$	2,072		$	472		$	868		$	445		$	423		$	136		$	116		$	448
Plant – Regulated
Electric generation, distribution and transmission	15-100	100,706			38,468			42,760			26,147			16,613			5,182			14,292			—
Natural gas transmission and distribution	12-80	8,808			—			—			—			—			2,719			—			6,089
Other buildings and improvements	24-90	1,966			681			636			295			341			270			253			126
Plant – Nonregulated
Electric generation, distribution and transmission	5-30	4,410			—			—			—			—			—			—			—
Other buildings and improvements	25-35	494			—			—			—			—			—			—			—
Nuclear fuel		3,460			1,898			1,562			1,562			—			—			—			—
Equipment	3-55	2,141			467			565			399			166			384			178			141
Construction in process		5,726			1,678			2,515			1,659			856			412			325			382
Other	3-40	4,675			1,077			1,354			952			393			257			279			300
Total property, plant and equipment^(a)(d)		134,458			44,741			50,260			31,459			18,792			9,360			15,443			7,486
Total accumulated depreciation – regulated^(b)(c)(d)		(41,079		)	(15,496		)	(16,398		)	(11,423		)	(4,968		)	(2,717		)	(4,914		)	(1,575		)
Total accumulated depreciation – nonregulated^(c)(d)		(2,047		)	—			—			—			—			—			—			—
Generation facilities to be retired, net		362			—			362			362			—			—			—			—
Total net property, plant and equipment		$	91,694		$	29,245		$	34,224		$	20,398		$	13,824		$	6,643		$	10,529		$	5,911

(a)

Includes capitalized leases of $1,237 million, $135 million, $257 million, $137 million, $120 million, $73 million and $35 million at Duke Energy, Duke Energy Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio and Duke Energy Indiana, respectively, primarily within Plant – Regulated. The Progress Energy, Duke Energy Progress and Duke Energy Florida amounts are net of $131 million, $14 million and $117 million, respectively, of accumulated amortization of capitalized leases.


(b)	Includes $1,947 million, $1,087 million, $860 million and $860 million of accumulated amortization of nuclear fuel at Duke Energy, Duke Energy Carolinas, Progress Energy and Duke Energy Progress, respectively.


(c)	Includes accumulated amortization of capitalized leases of $61 million, $12 million, $20 million and $10 million at Duke Energy, Duke Energy Carolinas, Duke Energy Ohio and Duke Energy Indiana, respectively.


(d)	Includes gross property, plant and equipment cost of consolidated VIEs of $4,007 million and accumulated depreciation of consolidated VIEs of $698 million at Duke Energy.



	December 31, 2017
	Estimated
	Useful				Duke						Duke			Duke			Duke			Duke
	Life	Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)	(Years)	Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Land		$	1,559		$	467		$	767		$	424		$	343		$	134		$	111		$	41
Plant – Regulated
Electric generation, distribution and transmission	8-100	93,687			35,657			39,419			24,502			14,917			4,870			13,741			—
Natural gas transmission and distribution	12-80	8,292			—			—			—			—			2,559			—			5,733
Other buildings and improvements	15-100	1,936			647			652			316			336			243			240			154
Plant – Nonregulated
Electric generation, distribution and transmission^(a)	5-30	4,273			—			—			—			—			—			—			—
Other buildings and improvements	25-35	465			—			—			—			—			—			—			—
Nuclear fuel		3,680			2,120			1,560			1,560			—			—			—			—
Equipment	3-55	2,122			402			555			416			139			348			169			266
Construction in process		6,995			2,614			3,059			1,434			1,625			350			416			231
Other	3-40	4,498			1,032			1,311			931			370			228			271			300
Total property, plant and equipment^(b)(e)		127,507			42,939			47,323			29,583			17,730			8,732			14,948			6,725
Total accumulated depreciation – regulated^(c)(d)(e)		(39,742		)	(15,063		)	(15,857		)	(10,903		)	(4,947		)	(2,691		)	(4,662		)	(1,479		)
Total accumulated depreciation – nonregulated^(d)(e)		(1,795		)	—			—			—			—			—			—			—
Generation facilities to be retired, net		421			—			421			421			—			—			—			—
Total net property, plant and equipment		$	86,391		$	27,876		$	31,887		$	19,101		$	12,783		$	6,041		$	10,286		$	5,246


(a)	Includes a pretax impairment charge of $58 million on a wholly owned non-contracted wind project. See discussion below.

(b)

Includes capitalized leases of $1,294 million, $81 million, $272 million, $139 million, $133 million, $80 million and $35 million at Duke Energy, Duke Energy Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio and Duke Energy Indiana, respectively, primarily within Plant – Regulated. The Progress Energy, Duke Energy Progress and Duke Energy Florida amounts are net of $114 million, $11 million and $103 million, respectively, of accumulated amortization of capitalized leases.


(c)	Includes $2,113 million, $1,283 million, $831 million and $831 million of accumulated amortization of nuclear fuel at Duke Energy, Duke Energy Carolinas, Progress Energy and Duke Energy Progress, respectively.


(d)	Includes accumulated amortization of capitalized leases of $57 million, $11 million, $21 million and $9 million at Duke Energy, Duke Energy Carolinas, Duke Energy Ohio and Duke Energy Indiana, respectively.


(e)	Includes gross property, plant and equipment cost of consolidated VIEs of $3,941 million and accumulated depreciation of consolidated VIEs of $598 million at Duke Energy.

During the year ended December 31, 2017, Duke Energy recorded a pretax impairment charge of $69 million on a wholly owned non-contracted wind project. The impairment was recorded within Impairment charges on Duke Energy’s Consolidated Statements of Operations. $58 million of the impairment related to property, plant and equipment and $11 million of the impairment related to a net intangible asset; see Note 11 for additional information. The charge represents the excess carrying value over the estimated fair value of the project, which was based on a Level 3 Fair Value measurement that was determined from the income approach using discounted cash flows. The impairment was primarily due to the non-contracted wind project being located in a market that has experienced continued declining market pricing during 2017 and declining long-term forecasted energy and capacity prices, driven by low natural gas prices, additional renewable generation placed in service and lack of significant load growth.

The following tables present capitalized interest, which includes the debt component of AFUDC.



	Years Ended December 31,
(in millions)	2018		2017		2016
Duke Energy	$	161	$	128	$	100
Duke Energy Carolinas	35		45		38
Progress Energy	51		45		31
Duke Energy Progress	26		21		17
Duke Energy Florida	25		24		14
Duke Energy Ohio	17		10		8
Duke Energy Indiana	27		9		7



	Years Ended December 31,				Two Months Ended December 31,		Year Ended October 31,
(in millions)	2018		2017		2016		2016
Piedmont	$	17	$	12	$	2	$	12

Operating Leases

Duke Energy's Commercial Renewables segment operates various renewable energy projects and sells the generated output to utilities, electric cooperatives, municipalities and commercial and industrial customers through long-term contracts. In certain situations, these long-term contracts and the associated renewable energy projects qualify as operating leases. Rental income from these leases is accounted for as Operating Revenues in the Consolidated Statements of Operations. There are no minimum lease payments as all payments are contingent based on actual electricity generated by the renewable energy projects. Contingent lease payments were $268 million, $262 million, and $216 million for the years ended December 31, 2018, 2017 and 2016. As of December 31, 2018, renewable energy projects owned by Duke Energy and accounted for as operating leases had a cost basis of $3,358 million and accumulated depreciation of $602 million. These assets are principally classified as nonregulated electric generation and transmission assets.