XML 216 R22.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

Investments in Unconsolidated Affiliates | 12 Months Ended
--- | ---
Dec. 31, 2019
Equity Method Investments and Joint Ventures [Abstract] |
Investments in Unconsolidated Affiliates | INVESTMENTS IN UNCONSOLIDATED AFFILIATES EQUITY METHOD INVESTMENTS Investments in affiliates that are not controlled by Duke Energy, but over which it has significant influence, are accounted for using the equity method. The following table presents Duke Energy’s investments in unconsolidated affiliates accounted for under the equity method, as well as the respective equity in earnings, by segment.
| Years Ended December 31,
| 2019 |  | 2018 |  | 2017
|  |  | Equity in |  |  |  |  | Equity in |  |  |  | Equity in |
(in millions) | Investments |  |  | earnings |  |  | Investments |  |  | earnings |  |  | Investments |  | earnings |
Electric Utilities and Infrastructure | $ | 122 |  |  | $ | 9 |  |  | $ | 97 |  |  | $ | 6 |  |  | $ | 89 |  | $ | 5 |
Gas Utilities and Infrastructure | 1,388 |  |  | 114 |  |  | 1,003 |  |  | 27 |  |  | 763 |  | 62 |
Commercial Renewables | 314 |  |  | (4 | ) |  | 201 |  |  | (1 | ) |  | 190 |  | (5 | )
Other | 112 |  |  | 43 |  |  | 108 |  |  | 51 |  |  | 133 |  | 57 |
Total | $ | 1,936 |  |  | $ | 162 |  |  | $ | 1,409 |  |  | $ | 83 |  |  | $ | 1,175 |  | $ | 119 |
During the years ended December 31, 2019, 2018 and 2017, Duke Energy received distributions from equity investments of $55 million, $108 million and $13 million, respectively, which are included in Other assets within Cash Flows from Operating Activities on the Consolidated Statements of Cash Flows. During the years ended December 31, 2019, 2018 and 2017, Duke Energy received distributions from equity investments of $11 million, $137 million and $281 million, respectively, which are included in Return of investment capital within Cash Flows from Investing Activities on the Consolidated Statements of Cash Flows. During the years ended December 31, 2019, 2018 and 2017, Piedmont received distributions from equity investments of $1 million, $1 million and $4 million, respectively, which are included in Other assets within Cash Flows from Operating Activities and $4 million, $3 million and $2 million, respectively, which are included within Cash Flows from Investing Activities on the Consolidated Statements of Cash Flows. Significant investments in affiliates accounted for under the equity method are discussed below. Electric Utilities and Infrastructure Duke Energy owns a 50% interest in DATC and in Pioneer, which build, own and operate electric transmission facilities in North America. Gas Utilities and Infrastructure The table below outlines Duke Energy's ownership interests in natural gas pipeline companies and natural gas storage facilities.
|  |  | Investment Amount (in millions) |
| Ownership |  | December 31, |  | December 31, |
Entity Name | Interest |  | 2019 |  | 2018 |
Pipeline Investments |  |  |  |  |  |
ACP | 47 | % |  | $ | 1,179 |  |  | $ | 797 |  |
Sabal Trail | 7.5 | % |  | 121 |  |  | 112 |  | (c)
Constitution | 24 | % |  | — |  |  | 25 |  |
Cardinal(a) | 21.49 | % |  | 9 |  |  | 10 |  |
Storage Facilities |  |  |  |  |  |
Pine Needle(a) | 45 | % |  | 28 |  |  | 13 |  |
Hardy Storage(a) | 50 | % |  | 51 |  |  | 46 |  |
Total Investments(b) |  |  | $ | 1,388 |  |  | $ | 1,003 |  |
(a) | Piedmont owns the Cardinal, Pine Needle and Hardy Storage investments.
(b) | Duke Energy includes purchase accounting adjustments related to Piedmont.
(c) | Sabal Trail returned capital of $112 million during the year ended December 31, 2018.
In October 2017, Duke Energy entered into a guarantee agreement to support its share of the ACP revolving credit facility. See Note 8 for additional information. As a result of the financing, ACP returned capital of $265 million to Duke Energy. During 2018 and 2019, ACP received several adverse court rulings as described in Note 4. As a result, Duke Energy evaluated this investment for impairment and determined that fair value approximated carrying value and therefore no impairment was necessary. For regulatory matters and other information on the ACP, Sabal Trail and Constitution investments, see Notes 4 and 18. Commercial Renewables DS Cornerstone, LLC, which owns wind farm projects in the U.S. was part of a sale of minority interest in a certain portion of renewable assets to John Hancock in 2019. See Note 2 for more information on the sale. Prior to the sale, Duke Energy had a 50% interest in DS Cornerstone, LLC. After the sale, Duke Energy has a 26% interest in the investment. In 2019, Duke Energy acquired a majority ownership in a portfolio of distributed fuel cell projects from Bloom Energy Corporation. Duke Energy is not the primary beneficiary of the assets within the portfolio and does not consolidate the assets in the portfolio. Impairment of Equity Method Investments Duke Energy recorded OTTIs of the Constitution investment within Equity in earnings of unconsolidated affiliates on Duke Energy's Consolidated Statements of Operations of $25 million and $55 million for the years ended December 31, 2019, and 2018, respectively. The current year charge resulted in the full write-down of Duke Energy's investment in Constitution. The impairments were primarily due to the continued delay in resolving project uncertainty through the courts and regulatory bodies, as well as recent pricing concerns between the customers and owners. For additional information on the Constitution investment, see Note 4. Other Duke Energy owns a 17.5% indirect interest in NMC, which owns and operates a methanol and MTBE business in Jubail, Saudi Arabia. Duke Energy's economic ownership interest decreased from 25% to 17.5% with the successful startup of NMC's polyacetal production facility in 2017. Duke Energy retains 25% of the board representation and voting rights of NMC.

X
- References No definition available. + Details
Name: | us-gaap_EquityMethodInvestmentsAndJointVenturesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section S99 -Paragraph 4 -Subparagraph (SX 210.3A-04) -URI http://asc.fasb.org/extlink&oid=116822174&loc=d3e355119-122828 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -URI http://asc.fasb.org/topic&trid=2196965 + Details
Name: | us-gaap_EquityMethodInvestmentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration