In conjunction with the merger with Progress Energy, in November 2011 Duke Energy and Progress Energy offered a voluntary severance plan to certain eligible employees. As this was 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 from Duke Energy and Progress Energy requested severance during the voluntary window, which closed on November 30, 2011. The estimated amount of future severance expense associated with this voluntary plan and other severance benefits through 2014, excluding amounts incurred through March 31, 2013, is expected to be approximately $20 million and most of the costs will be charged to Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida.

Additionally, in the third quarter of 2012, a voluntary severance plan was offered to certain unionized employees of Duke Energy Ohio. Approximately 75 employees accepted the termination benefits during the voluntary window, which closed on October 8, 2012. The expense associated with this plan was not material.

In conjunction with the retirement of the Crystal River Unit 3, severance benefits will be made available to certain eligible impacted unionized and non-unionized employees, to the extent that those employees do not find job opportunities at other locations. Approximately 600 employees work at Crystal River Unit 3. In the first quarter of 2013, Duke Energy Florida deferred $16 million of severance costs as a regulatory asset. Future severance expense expected to be incurred at Duke Energy Florida is currently not estimable as the total number of employees impacted and job classifications and functions have not yet been determined. Refer to Note 4 for further discussion regarding Crystal River Unit 3.

Amounts included in the table below represent direct and allocated severance and related expense recorded by the Duke Energy Registrants, and are recorded in Operation, maintenance, and other within Operating Expenses on the Condensed Consolidated Statements of Operations. The Duke Energy Registrants recorded no severance expense during the three months ended March 31, 2012.


(in millions)		Three Months Ended March 31, 2013
Duke Energy^(a)		$	16
Duke Energy Carolinas			5
Progress Energy			7
Duke Energy Progress			5
Duke Energy Florida			2
Duke Energy Ohio			1
Duke Energy Indiana			2

(a)	Includes $5 million of accelerated stock award expense.

Amounts included in the table below represent the severance liability for past and ongoing severance plans. Amounts for Subsidiary Registrants do not include allocated expense or associated cash payments. Amounts for Duke Energy Ohio and Duke Energy Indiana are not material.

(in millions)		Balance at December 31, 2012		Provision / Adjustments		Cash Reductions		Balance at March 31, 2013
Duke Energy^(a)		$	135	$	31	$	(67)	$	99
Duke Energy Carolinas			12		1		(9)		4
Progress Energy^(a)			43		21		(18)		46
Duke Energy Progress			23		1		(10)		14
Duke Energy Florida^(a)			6		16		(2)		20

(a)	Provision / Adjustments includes $16 million of severance costs deferred related to Crystal River Unit 3.