Asset Retirement Obligations

9 Months Ended

Sep. 30, 2024

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, 2024
			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	$	4,634	$	2,024	$	2,605	$	2,483	$	122	$	—	$	—	$	—
Closure of ash impoundments	5,240		1,899		2,019		2,001		18		72		1,249		—
Other	276		57		99		34		65		65		29		27
Total ARO	$	10,150	$	3,980	$	4,723	$	4,518	$	205	$	137	$	1,278	$	27
Less: Current portion	639		253		227		225		2		7		152		—
Total noncurrent ARO	$	9,511	$	3,727	$	4,496	$	4,293	$	203	$	130	$	1,126	$	27

ARO Liability Rollforward

In April 2024, the EPA issued the 2024 CCR Rule under the Resource Conservation and Recovery Act, which significantly expands the scope of the 2015 CCR Rule by establishing regulatory requirements for inactive surface impoundments at retired generating facilities and previously unregulated coal ash sources at regulated facilities.

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, 2023(a)	$	9,156	$	4,013	$	4,145	$	3,870	$	275	$	136	$	809	$	26

Accretion expense(b)	316		137		145		138		7		5		33		1
Liabilities settled(c)	(485)		(154)		(254)		(181)		(73)		(6)		(70)		—

Revisions in estimates of cash flows(d)	1,163		(16)		687		691		(4)		2		506		—
Balance at September 30, 2024	$	10,150	$	3,980	$	4,723	$	4,518	$	205	$	137	$	1,278	$	27

(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, 2024, 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 revision amounts represent the change in discounted cash flows for estimated closure costs as evaluated on a site-by-site basis. The increases primarily relate to additional scope requirements to regulate the disposal of CCR in landfills and surface impoundments as a result of the 2024 CCR Rule, including an increase in groundwater monitoring wells.

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.