ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Commission file number | Registrant, State of Incorporation or Organization, Address of Principal Executive Offices, and Telephone Number | IRS Employer Identification No. |
1-32853 | DUKE ENERGY CORPORATION (a Delaware corporation) 550 South Tryon Street Charlotte, North Carolina 28202-1803 704-382-3853 | 20-2777218 |
Commission file number | Registrant, State of Incorporation or Organization, Address of Principal Executive Offices, Telephone Number and IRS Employer Identification Number | Commission file number | Registrant, State of Incorporation or Organization, Address of Principal Executive Offices, Telephone Number and IRS Employer Identification Number | |
1-4928 | DUKE ENERGY CAROLINAS, LLC (a North Carolina limited liability company) 526 South Church Street Charlotte, North Carolina 28202-1803 704-382-3853 56-0205520 | 1-3274 | DUKE ENERGY FLORIDA, INC. (a Florida corporation) 299 First Avenue North St. Petersburg, Florida 33701 704-382-3853 59-0247770 | |
1-15929 | PROGRESS ENERGY, INC. (a North Carolina corporation) 410 South Wilmington Street Raleigh, North Carolina 27601-1748 704-382-3853 56-2155481 | 1-1232 | DUKE ENERGY OHIO, INC. (an Ohio corporation) 139 East Fourth Street Cincinnati, Ohio 45202 704-382-3853 31-0240030 | |
1-3382 | DUKE ENERGY PROGRESS, INC. (a North Carolina corporation) 410 South Wilmington Street Raleigh, North Carolina 27601-1748 704-382-3853 56-0165465 | 1-3543 | DUKE ENERGY INDIANA, INC. (an Indiana corporation) 1000 East Main Street Plainfield, Indiana 46168 704-382-3853 35-0594457 |
Duke Energy Corporation (Duke Energy) | Yes x | No ¨ | Duke Energy Florida, Inc. (Duke Energy Florida) | Yes x | No ¨ | |
Duke Energy Carolinas, LLC (Duke Energy Carolinas) | Yes x | No ¨ | Duke Energy Ohio, Inc. (Duke Energy Ohio) | Yes x | No ¨ | |
Progress Energy, Inc. (Progress Energy) | Yes x | No ¨ | Duke Energy Indiana, Inc. (Duke Energy Indiana) | Yes x | No ¨ | |
Duke Energy Progress, Inc. (Duke Energy Progress) | Yes x | No ¨ |
Duke Energy | Yes x | No ¨ | Duke Energy Florida | Yes x | No ¨ | |
Duke Energy Carolinas | Yes x | No ¨ | Duke Energy Ohio | Yes x | No ¨ | |
Progress Energy | Yes x | No ¨ | Duke Energy Indiana | Yes x | No ¨ | |
Duke Energy Progress | Yes x | No ¨ |
Duke Energy | Large accelerated filer x | Accelerated filer ¨ | Non-accelerated filer ¨ | Smaller reporting company ¨ |
Duke Energy Carolinas | Large accelerated filer ¨ | Accelerated filer ¨ | Non-accelerated filer x | Smaller reporting company ¨ |
Progress Energy | Large accelerated filer ¨ | Accelerated filer ¨ | Non-accelerated filer x | Smaller reporting company ¨ |
Duke Energy Progress | Large accelerated filer ¨ | Accelerated filer ¨ | Non-accelerated filer x | Smaller reporting company ¨ |
Duke Energy Florida | Large accelerated filer ¨ | Accelerated filer ¨ | Non-accelerated filer x | Smaller reporting company ¨ |
Duke Energy Ohio | Large accelerated filer ¨ | Accelerated filer ¨ | Non-accelerated filer x | Smaller reporting company ¨ |
Duke Energy Indiana | Large accelerated filer ¨ | Accelerated filer ¨ | Non-accelerated filer x | Smaller reporting company ¨ |
Duke Energy | Yes ¨ | No x | Duke Energy Florida | Yes ¨ | No x | |
Duke Energy Carolinas | Yes ¨ | No x | Duke Energy Ohio | Yes ¨ | No x | |
Progress Energy | Yes ¨ | No x | Duke Energy Indiana | Yes ¨ | No x | |
Duke Energy Progress | Yes ¨ | No x |
Registrant | Description | Shares |
Duke Energy | Common Stock, $0.001 par value | 707,290,608 |
Duke Energy Carolinas | All of the registrant's limited liability company member interests are directly owned by Duke Energy. | |
Progress Energy | All of the registrant's common stock is directly owned by Duke Energy. | |
Duke Energy Progress | All of the registrant’s common stock is indirectly owned by Duke Energy. | |
Duke Energy Florida | All of the registrant’s common stock is indirectly owned by Duke Energy. | |
Duke Energy Ohio | All of the registrant’s common stock is indirectly owned by Duke Energy. | |
Duke Energy Indiana | All of the registrant’s common stock is indirectly owned by Duke Energy. |
PART I. FINANCIAL INFORMATION | ||
PART II. OTHER INFORMATION | ||
◦ | State, federal and foreign legislative and regulatory initiatives, including costs of compliance with existing and future environmental requirements or climate change, as well as rulings that affect cost and investment recovery or have an impact on rate structures or market prices; |
◦ | The extent and timing of the costs and liabilities relating to the Dan River ash basin release and compliance with current and any future regulatory changes related to the management of coal ash; |
◦ | The ability to recover eligible costs, including those associated with future significant weather events, and earn an adequate return on investment through the regulatory process; |
◦ | The costs of decommissioning Crystal River Unit 3 could prove to be more extensive than are currently identified and all costs may not be fully recoverable through the regulatory process; |
◦ | The risk that the credit ratings of the company or its subsidiaries may be different from what the companies expect; |
◦ | Costs and effects of legal and administrative proceedings, settlements, investigations and claims; |
◦ | Industrial, commercial and residential growth or decline in service territories or customer bases resulting from customer usage patterns, including energy efficiency efforts and use of alternative energy sources, including self-generation and distributed generation technologies; |
◦ | Additional competition in electric markets and continued industry consolidation; |
◦ | Political and regulatory uncertainty in other countries in which Duke Energy conducts business; |
◦ | The influence of weather and other natural phenomena on operations, including the economic, operational and other effects of severe storms, hurricanes, droughts and tornadoes; |
◦ | The ability to successfully operate electric generating facilities and deliver electricity to customers; |
◦ | The impact on facilities and business from a terrorist attack, cybersecurity threats, data security breaches, and other catastrophic events; |
◦ | The inherent risks associated with the operation and potential construction of nuclear facilities, including environmental, health, safety, regulatory and financial risks; |
◦ | The timing and extent of changes in commodity prices, interest rates and foreign currency exchange rates and the ability to recover such costs through the regulatory process, where appropriate, and their impact on liquidity positions and the value of underlying assets; |
◦ | The results of financing efforts, including the ability to obtain financing on favorable terms, which can be affected by various factors, including credit ratings and general economic conditions; |
◦ | Declines in the market prices of equity and fixed income securities and resultant cash funding requirements for defined benefit pension plans, other post-retirement benefit plans, and nuclear decommissioning trust funds; |
◦ | Changes in rules for regional transmission organizations, including changes in rate designs and new and evolving capacity markets, and risks related to obligations created by the default of other participants; |
◦ | The ability to control operation and maintenance costs; |
◦ | The level of creditworthiness of counterparties to transactions; |
◦ | Employee workforce factors, including the potential inability to attract and retain key personnel; |
◦ | The ability of subsidiaries to pay dividends or distributions to Duke Energy Corporation holding company (the Parent); |
◦ | The performance of projects undertaken by our nonregulated businesses and the success of efforts to invest in and develop new opportunities; |
◦ | The effect of accounting pronouncements issued periodically by accounting standard-setting bodies; |
◦ | The impact of potential goodwill impairments; |
◦ | The ability to reinvest retained earnings of foreign subsidiaries or repatriate such earnings on a tax-free basis; and |
◦ | The ability to successfully complete future merger, acquisition or divestiture plans. |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
(in millions, except per-share amounts) | 2014 | 2013 | 2014 | 2013 | |||||||||||
Operating Revenues | |||||||||||||||
Regulated electric | $ | 5,861 | $ | 5,685 | $ | 16,549 | $ | 15,355 | |||||||
Nonregulated electric, natural gas and other | 449 | 449 | 1,403 | 1,415 | |||||||||||
Regulated natural gas | 85 | 83 | 414 | 362 | |||||||||||
Total operating revenues | 6,395 | 6,217 | 18,366 | 17,132 | |||||||||||
Operating Expenses | |||||||||||||||
Fuel used in electric generation and purchased power - regulated | 2,132 | 2,013 | 5,940 | 5,394 | |||||||||||
Fuel used in electric generation and purchased power - nonregulated | 148 | 130 | 410 | 435 | |||||||||||
Cost of natural gas and other | 27 | 18 | 181 | 132 | |||||||||||
Operation, maintenance and other | 1,409 | 1,402 | 4,254 | 4,211 | |||||||||||
Depreciation and amortization | 788 | 672 | 2,305 | 1,940 | |||||||||||
Property and other taxes | 275 | 319 | 936 | 972 | |||||||||||
Impairment charges | 1 | 2 | 81 | 388 | |||||||||||
Total operating expenses | 4,780 | 4,556 | 14,107 | 13,472 | |||||||||||
Gains (Losses) on Sales of Other Assets and Other, net | 4 | (1 | ) | 11 | 3 | ||||||||||
Operating Income | 1,619 | 1,660 | 4,270 | 3,663 | |||||||||||
Other Income and Expenses | |||||||||||||||
Equity in earnings of unconsolidated affiliates | 28 | 32 | 97 | 91 | |||||||||||
Other income and expenses, net | 109 | 55 | 293 | 182 | |||||||||||
Total other income and expenses | 137 | 87 | 390 | 273 | |||||||||||
Interest Expense | 405 | 378 | 1,212 | 1,125 | |||||||||||
Income From Continuing Operations Before Income Taxes | 1,351 | 1,369 | 3,448 | 2,811 | |||||||||||
Income Tax Expense from Continuing Operations | 460 | 423 | 1,081 | 909 | |||||||||||
Income From Continuing Operations | 891 | 946 | 2,367 | 1,902 | |||||||||||
Income (Loss) From Discontinued Operations, net of tax | 378 | 62 | (578 | ) | 82 | ||||||||||
Net Income | 1,269 | 1,008 | 1,789 | 1,984 | |||||||||||
Less: Net Income (Loss) Attributable to Noncontrolling Interests | (5 | ) | 4 | 3 | 7 | ||||||||||
Net Income Attributable to Duke Energy Corporation | $ | 1,274 | $ | 1,004 | $ | 1,786 | $ | 1,977 | |||||||
Earnings Per Share - Basic and Diluted | |||||||||||||||
Income from continuing operations attributable to Duke Energy Corporation common shareholders | |||||||||||||||
Basic | $ | 1.25 | $ | 1.33 | $ | 3.33 | $ | 2.67 | |||||||
Diluted | $ | 1.25 | $ | 1.33 | $ | 3.33 | $ | 2.67 | |||||||
Income (Loss) from discontinued operations attributable to Duke Energy Corporation common shareholders | |||||||||||||||
Basic | $ | 0.55 | $ | 0.09 | $ | (0.81 | ) | $ | 0.12 | ||||||
Diluted | $ | 0.55 | $ | 0.09 | $ | (0.81 | ) | $ | 0.12 | ||||||
Net Income attributable to Duke Energy Corporation common shareholders | |||||||||||||||
Basic | $ | 1.80 | $ | 1.42 | $ | 2.52 | $ | 2.79 | |||||||
Diluted | $ | 1.80 | $ | 1.42 | $ | 2.52 | $ | 2.79 | |||||||
Weighted-average shares outstanding | |||||||||||||||
Basic | 707 | 706 | 707 | 706 | |||||||||||
Diluted | 707 | 706 | 707 | 706 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||
Net Income | $ | 1,269 | $ | 1,008 | $ | 1,789 | $ | 1,984 | |||||||
Other Comprehensive Loss, net of tax | |||||||||||||||
Foreign currency translation adjustments | (102 | ) | (8 | ) | (50 | ) | (137 | ) | |||||||
Pension and OPEB adjustments | 1 | — | 1 | 5 | |||||||||||
Net unrealized gains (losses) on cash flow hedges(a) | 2 | 1 | (10 | ) | 55 | ||||||||||
Reclassification into earnings from cash flow hedges | 2 | 1 | 5 | 1 | |||||||||||
Unrealized (losses) gains on investments in available-for-sale securities | — | (1 | ) | 2 | (5 | ) | |||||||||
Reclassification into earnings from available-for-sale-securities | — | 3 | — | 3 | |||||||||||
Other Comprehensive Loss, net of tax | (97 | ) | (4 | ) | (52 | ) | (78 | ) | |||||||
Comprehensive Income | 1,172 | 1,004 | 1,737 | 1,906 | |||||||||||
Less: Comprehensive (Loss) Income Attributable to Noncontrolling Interests | (1 | ) | 4 | 8 | 3 | ||||||||||
Comprehensive Income Attributable to Duke Energy Corporation | $ | 1,173 | $ | 1,000 | $ | 1,729 | $ | 1,903 |
(a) | Net of insignificant tax expense and $5 million tax benefit for the three and nine months ended September 30, 2014 and $1 million tax benefit and $17 million tax expense for the three and nine months ended September 30, 2013. |
(in millions) | September 30, 2014 | December 31, 2013 | |||||
ASSETS | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 1,931 | $ | 1,501 | |||
Short-Term investments | — | 44 | |||||
Receivables (net of allowance for doubtful accounts of $16 at September 30, 2014 and $30 at December 31, 2013) | 854 | 1,286 | |||||
Restricted receivables of variable interest entities (net of allowance for doubtful accounts of $52 at September 30, 2014 and $43 at December 31, 2013) | 2,069 | 1,719 | |||||
Inventory | 3,200 | 3,250 | |||||
Assets held for sale | 335 | — | |||||
Regulatory assets | 1,232 | 895 | |||||
Other | 1,954 | 1,821 | |||||
Total current assets | 11,575 | 10,516 | |||||
Investments and Other Assets | |||||||
Investments in equity method unconsolidated affiliates | 350 | 390 | |||||
Nuclear decommissioning trust funds | 5,374 | 5,132 | |||||
Goodwill | 16,331 | 16,340 | |||||
Assets held for sale | 2,718 | 107 | |||||
Other | 3,287 | 3,432 | |||||
Total investments and other assets | 28,060 | 25,401 | |||||
Property, Plant and Equipment | |||||||
Cost | 104,140 | 103,115 | |||||
Accumulated depreciation and amortization | (34,545 | ) | (33,625 | ) | |||
Net property, plant and equipment | 69,595 | 69,490 | |||||
Regulatory Assets and Deferred Debits | |||||||
Regulatory assets | 10,252 | 9,191 | |||||
Other | 174 | 181 | |||||
Total regulatory assets and deferred debits | 10,426 | 9,372 | |||||
Total Assets | $ | 119,656 | $ | 114,779 | |||
LIABILITIES AND EQUITY | |||||||
Current Liabilities | |||||||
Accounts payable | $ | 1,801 | $ | 2,391 | |||
Notes payable and commercial paper | 1,787 | 839 | |||||
Taxes accrued | 704 | 551 | |||||
Interest accrued | 476 | 440 | |||||
Current maturities of long-term debt | 1,156 | 2,104 | |||||
Liabilities associated with assets held for sale | 284 | 7 | |||||
Regulatory liabilities | 175 | 316 | |||||
Other | 1,868 | 1,996 | |||||
Total current liabilities | 8,251 | 8,644 | |||||
Long-Term Debt | 38,702 | 38,152 | |||||
Deferred Credits and Other Liabilities | |||||||
Deferred income taxes | 12,989 | 12,097 | |||||
Investment tax credits | 431 | 442 | |||||
Accrued pension and other post-retirement benefit costs | 1,231 | 1,322 | |||||
Liabilities associated with assets held for sale | 57 | 66 | |||||
Asset retirement obligations | 8,499 | 4,950 | |||||
Regulatory liabilities | 6,220 | 5,949 | |||||
Other | 1,823 | 1,749 | |||||
Total deferred credits and other liabilities | 31,250 | 26,575 | |||||
Commitments and Contingencies | |||||||
Equity | |||||||
Common stock, $0.001 par value, 2 billion shares authorized; 707 million and 706 million shares outstanding at September 30, 2014 and December 31, 2013, respectively | 1 | 1 | |||||
Additional paid-in capital | 39,388 | 39,365 | |||||
Retained earnings | 2,479 | 2,363 | |||||
Accumulated other comprehensive loss | (456 | ) | (399 | ) | |||
Total Duke Energy Corporation stockholders' equity | 41,412 | 41,330 | |||||
Noncontrolling interests | 41 | 78 | |||||
Total equity | 41,453 | 41,408 | |||||
Total Liabilities and Equity | $ | 119,656 | $ | 114,779 |
Nine Months Ended September 30, | |||||||
(in millions) | 2014 | 2013 | |||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net Income | $ | 1,789 | $ | 1,984 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation, amortization and accretion (including amortization of nuclear fuel) | 2,641 | 2,365 | |||||
Equity component of AFUDC | (99 | ) | (121 | ) | |||
Community support and charitable contributions expense | — | 34 | |||||
(Gains) losses on sales of other assets | (27 | ) | 8 | ||||
Impairment charges | 848 | 388 | |||||
Deferred income taxes | 562 | 1,014 | |||||
Equity in earnings of unconsolidated affiliates | (97 | ) | (91 | ) | |||
Accrued pension and other post-retirement benefit costs | 81 | 259 | |||||
Contributions to qualified pension plans | — | (27 | ) | ||||
(Increase) decrease in | |||||||
Net realized and unrealized mark-to-market and hedging transactions | 128 | (14 | ) | ||||
Receivables | (24 | ) | (154 | ) | |||
Inventory | (17 | ) | 119 | ||||
Other current assets | (315 | ) | (48 | ) | |||
Increase (decrease) in | |||||||
Accounts payable | (303 | ) | (412 | ) | |||
Taxes accrued | 37 | 245 | |||||
Other current liabilities | (99 | ) | (31 | ) | |||
Other assets | (100 | ) | (307 | ) | |||
Other liabilities | 162 | (221 | ) | ||||
Net cash provided by operating activities | 5,167 | 4,990 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
Capital expenditures | (3,755 | ) | (3,854 | ) | |||
Investment expenditures | (65 | ) | (53 | ) | |||
Acquisitions | (16 | ) | — | ||||
Purchases of available-for-sale securities | (2,424 | ) | (4,591 | ) | |||
Proceeds from sales and maturities of available-for-sale securities | 2,445 | 4,687 | |||||
Net proceeds from the sales of equity investments and other assets | 172 | 59 | |||||
Change in restricted cash | (15 | ) | 166 | ||||
Other | (76 | ) | 20 | ||||
Net cash used in investing activities | (3,734 | ) | (3,566 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
Proceeds from the: | |||||||
Issuance of long-term debt | 2,217 | 2,993 | |||||
Issuance of common stock related to employee benefit plans | 24 | 8 | |||||
Payments for the: | |||||||
Redemption of long-term debt | (2,503 | ) | (2,506 | ) | |||
Redemption of preferred stock of a subsidiary | — | (96 | ) | ||||
Notes payable and commercial paper | 941 | 537 | |||||
Distributions to noncontrolling interests | (45 | ) | (9 | ) | |||
Dividends paid | (1,670 | ) | (1,636 | ) | |||
Other | 33 | 27 | |||||
Net cash used in financing activities | (1,003 | ) | (682 | ) | |||
Net increase in cash and cash equivalents | 430 | 742 | |||||
Cash and cash equivalents at beginning of period | 1,501 | 1,424 | |||||
Cash and cash equivalents at end of period | $ | 1,931 | $ | 2,166 | |||
Supplemental Disclosures: | |||||||
Significant non-cash transactions: | |||||||
Accrued capital expenditures | $ | 466 | $ | 383 |
Accumulated Other Comprehensive Loss | ||||||||||||||||||||||||||||||||||||||||||
(in millions) | Common Stock Shares | Common Stock | Additional Paid-in Capital | Retained Earnings | Foreign Currency Translation Adjustments | Net Gains (Losses) on Cash Flow Hedges | Net Gains (Losses) on Available-for-Sale Securities | Pension and OPEB Adjustments | Common Stockholders' Equity | Noncontrolling Interests | Total Equity | |||||||||||||||||||||||||||||||
Balance at December 31, 2012 | 704 | $ | 1 | $ | 39,279 | $ | 1,889 | $ | (116 | ) | $ | (100 | ) | $ | — | $ | (90 | ) | $ | 40,863 | $ | 78 | $ | 40,941 | ||||||||||||||||||
Net income | — | — | — | 1,977 | — | — | — | — | 1,977 | 7 | 1,984 | |||||||||||||||||||||||||||||||
Other comprehensive (loss) income | — | — | — | — | (133 | ) | 56 | (2 | ) | 5 | (74 | ) | (4 | ) | (78 | ) | ||||||||||||||||||||||||||
Common stock issuances, including dividend reinvestment and employee benefits | 2 | — | 38 | — | — | — | — | — | 38 | — | 38 | |||||||||||||||||||||||||||||||
Common stock dividends | — | — | — | (1,636 | ) | — | — | — | — | (1,636 | ) | — | (1,636 | ) | ||||||||||||||||||||||||||||
Premium on the redemption of preferred stock of subsidiaries | — | — | — | (3 | ) | — | — | — | — | (3 | ) | — | (3 | ) | ||||||||||||||||||||||||||||
Changes in noncontrolling interest in subsidiaries | — | — | — | — | — | — | — | — | — | (9 | ) | (9 | ) | |||||||||||||||||||||||||||||
Balance at September 30, 2013 | 706 | $ | 1 | $ | 39,317 | $ | 2,227 | $ | (249 | ) | $ | (44 | ) | $ | (2 | ) | $ | (85 | ) | $ | 41,165 | $ | 72 | $ | 41,237 | |||||||||||||||||
Balance at December 31, 2013 | 706 | $ | 1 | $ | 39,365 | $ | 2,363 | $ | (307 | ) | $ | (40 | ) | $ | — | $ | (52 | ) | $ | 41,330 | $ | 78 | $ | 41,408 | ||||||||||||||||||
Net income | — | — | — | 1,786 | — | — | — | — | 1,786 | 3 | 1,789 | |||||||||||||||||||||||||||||||
Other comprehensive (loss) income | — | — | — | — | (55 | ) | (5 | ) | 2 | 1 | (57 | ) | 5 | (52 | ) | |||||||||||||||||||||||||||
Common stock issuances, including dividend reinvestment and employee benefits | 1 | — | 23 | — | — | — | — | — | 23 | — | 23 | |||||||||||||||||||||||||||||||
Common stock dividends | — | — | — | (1,670 | ) | — | — | — | — | (1,670 | ) | — | (1,670 | ) | ||||||||||||||||||||||||||||
Distributions to noncontrolling interest in subsidiaries | — | — | — | — | — | — | — | — | — | (45 | ) | (45 | ) | |||||||||||||||||||||||||||||
Balance at September 30, 2014 | 707 | $ | 1 | $ | 39,388 | $ | 2,479 | $ | (362 | ) | $ | (45 | ) | $ | 2 | $ | (51 | ) | $ | 41,412 | $ | 41 | $ | 41,453 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||
Operating Revenues | $ | 1,938 | $ | 1,919 | $ | 5,693 | $ | 5,239 | |||||||
Operating Expenses | |||||||||||||||
Fuel used in electric generation and purchased power | 524 | 539 | 1,685 | 1,500 | |||||||||||
Operation, maintenance and other | 465 | 456 | 1,415 | 1,392 | |||||||||||
Depreciation and amortization | 260 | 228 | 750 | 676 | |||||||||||
Property and other taxes | 59 | 90 | 263 | 282 | |||||||||||
Impairment charges | — | — | 3 | — | |||||||||||
Total operating expenses | 1,308 | 1,313 | 4,116 | 3,850 | |||||||||||
Losses on Sales of Other Assets and Other, net | — | (2 | ) | — | — | ||||||||||
Operating Income | 630 | 604 | 1,577 | 1,389 | |||||||||||
Other Income and Expenses, net | 44 | 29 | 137 | 94 | |||||||||||
Interest Expense | 104 | 82 | 307 | 255 | |||||||||||
Income Before Income Taxes | 570 | 551 | 1,407 | 1,228 | |||||||||||
Income Tax Expense | 193 | 209 | 474 | 461 | |||||||||||
Net Income | $ | 377 | $ | 342 | $ | 933 | $ | 767 | |||||||
Other Comprehensive Income, net of tax | |||||||||||||||
Reclassification into earnings from cash flow hedges | — | 1 | 2 | 1 | |||||||||||
Comprehensive Income | $ | 377 | $ | 343 | $ | 935 | $ | 768 |
(in millions) | September 30, 2014 | December 31, 2013 | |||||
ASSETS | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 34 | $ | 23 | |||
Receivables (net of allowance for doubtful accounts of $3 at September 30, 2014 and December 31, 2013) | 123 | 186 | |||||
Restricted receivables of variable interest entities (net of allowance for doubtful accounts of $6 at September 30, 2014 and December 31, 2013) | 695 | 673 | |||||
Receivables from affiliated companies | 117 | 75 | |||||
Notes receivable from affiliated companies | 339 | 222 | |||||
Inventory | 973 | 1,065 | |||||
Regulatory assets | 388 | 295 | |||||
Other | 247 | 309 | |||||
Total current assets | 2,916 | 2,848 | |||||
Investments and Other Assets | |||||||
Nuclear decommissioning trust funds | 2,965 | 2,840 | |||||
Other | 975 | 1,000 | |||||
Total investments and other assets | 3,940 | 3,840 | |||||
Property, Plant and Equipment | |||||||
Cost | 37,670 | 34,906 | |||||
Accumulated depreciation and amortization | (12,544 | ) | (11,894 | ) | |||
Net property, plant and equipment | 25,126 | 23,012 | |||||
Regulatory Assets and Deferred Debits | |||||||
Regulatory assets | 1,986 | 1,527 | |||||
Other | 42 | 46 | |||||
Total regulatory assets and deferred debits | 2,028 | 1,573 | |||||
Total Assets | $ | 34,010 | $ | 31,273 | |||
LIABILITIES AND MEMBER'S EQUITY | |||||||
Current Liabilities | |||||||
Accounts payable | $ | 514 | $ | 701 | |||
Accounts payable to affiliated companies | 176 | 161 | |||||
Taxes accrued | 334 | 147 | |||||
Interest accrued | 130 | 97 | |||||
Current maturities of long-term debt | 7 | 47 | |||||
Regulatory liabilities | 31 | 65 | |||||
Other | 399 | 393 | |||||
Total current liabilities | 1,591 | 1,611 | |||||
Long-Term Debt | 8,087 | 8,089 | |||||
Long-Term Debt Payable to Affiliated Companies | 300 | 300 | |||||
Deferred Credits and Other Liabilities | |||||||
Deferred income taxes | 5,725 | 5,706 | |||||
Investment tax credits | 205 | 210 | |||||
Accrued pension and other post-retirement benefit costs | 149 | 161 | |||||
Asset retirement obligations | 3,691 | 1,594 | |||||
Regulatory liabilities | 2,690 | 2,576 | |||||
Other | 663 | 676 | |||||
Total deferred credits and other liabilities | 13,123 | 10,923 | |||||
Commitments and Contingencies | |||||||
Member's Equity | |||||||
Member's equity | 10,922 | 10,365 | |||||
Accumulated other comprehensive loss | (13 | ) | (15 | ) | |||
Total member's equity | 10,909 | 10,350 | |||||
Total Liabilities and Member's Equity | $ | 34,010 | $ | 31,273 |
Nine Months Ended September 30, | |||||||
(in millions) | 2014 | 2013 | |||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net income | $ | 933 | $ | 767 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization (including amortization of nuclear fuel) | 952 | 865 | |||||
Equity component of AFUDC | (68 | ) | (70 | ) | |||
Community support and charitable contributions expense | — | 14 | |||||
Impairment charges | 3 | — | |||||
Deferred income taxes | 47 | 487 | |||||
Accrued pension and other post-retirement benefit costs | 16 | 29 | |||||
(Increase) decrease in | |||||||
Net realized and unrealized mark-to-market and hedging transactions | — | (7 | ) | ||||
Receivables | 5 | (24 | ) | ||||
Receivables from affiliated companies | (42 | ) | (37 | ) | |||
Inventory | 91 | 23 | |||||
Other current assets | (130 | ) | 35 | ||||
Increase (decrease) in | |||||||
Accounts payable | (167 | ) | (90 | ) | |||
Accounts payable to affiliated companies | 15 | 107 | |||||
Taxes accrued | 173 | 18 | |||||
Other current liabilities | 7 | 2 | |||||
Other assets | 23 | (80 | ) | ||||
Other liabilities | 21 | (66 | ) | ||||
Net cash provided by operating activities | 1,879 | 1,973 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
Capital expenditures | (1,289 | ) | (1,205 | ) | |||
Purchases of available-for-sale securities | (1,533 | ) | (1,883 | ) | |||
Proceeds from sales and maturities of available-for-sale securities | 1,516 | 1,847 | |||||
Notes receivable from affiliated companies | (117 | ) | (213 | ) | |||
Other | (27 | ) | (11 | ) | |||
Net cash used in investing activities | (1,450 | ) | (1,465 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
Payments for the redemption of long-term debt | (42 | ) | — | ||||
Distributions to parent | (376 | ) | (500 | ) | |||
Other | — | (2 | ) | ||||
Net cash used in financing activities | (418 | ) | (502 | ) | |||
Net increase in cash and cash equivalents | 11 | 6 | |||||
Cash and cash equivalents at beginning of period | 23 | 19 | |||||
Cash and cash equivalents at end of period | $ | 34 | $ | 25 | |||
Supplemental Disclosures: | |||||||
Significant non-cash transactions: | |||||||
Accrued capital expenditures | $ | 177 | $ | 111 |
Accumulated Other Comprehensive Loss | |||||||||||||||
(in millions) | Member's Equity | Net (Losses) Gains on Cash Flow Hedges | Unrealized Losses on Available-for-Sale Securities | Total | |||||||||||
Balance at December 31, 2012 | $ | 9,888 | $ | (15 | ) | $ | (1 | ) | $ | 9,872 | |||||
Net income | 767 | — | — | 767 | |||||||||||
Other comprehensive income | — | 1 | — | 1 | |||||||||||
Distributions to parent | (500 | ) | — | — | (500 | ) | |||||||||
Balance at September 30, 2013 | $ | 10,155 | $ | (14 | ) | $ | (1 | ) | $ | 10,140 | |||||
Balance at December 31, 2013 | $ | 10,365 | $ | (14 | ) | $ | (1 | ) | $ | 10,350 | |||||
Net income | 933 | — | — | 933 | |||||||||||
Other comprehensive income | — | 2 | — | 2 | |||||||||||
Distributions to parent | (376 | ) | — | — | (376 | ) | |||||||||
Balance at September 30, 2014 | $ | 10,922 | $ | (12 | ) | $ | (1 | ) | $ | 10,909 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||
Operating Revenues | $ | 2,863 | $ | 2,766 | $ | 7,825 | $ | 7,233 | |||||||
Operating Expenses | |||||||||||||||
Fuel used in electric generation and purchased power | 1,214 | 1,154 | 3,234 | 2,932 | |||||||||||
Operation, maintenance and other | 564 | 559 | 1,714 | 1,653 | |||||||||||
Depreciation and amortization | 294 | 240 | 851 | 644 | |||||||||||
Property and other taxes | 127 | 141 | 415 | 423 | |||||||||||
Impairment charges | 1 | 2 | (16 | ) | 368 | ||||||||||
Total operating expenses | 2,200 | 2,096 | 6,198 | 6,020 | |||||||||||
Gains on Sales of Other Assets and Other, net | 2 | 1 | 3 | 2 | |||||||||||
Operating Income | 665 | 671 | 1,630 | 1,215 | |||||||||||
Other Income and Expenses, net | 26 | 26 | 54 | 63 | |||||||||||
Interest Expense | 166 | 162 | 502 | 520 | |||||||||||
Income From Continuing Operations Before Taxes | 525 | 535 | 1,182 | 758 | |||||||||||
Income Tax Expense From Continuing Operations | 195 | 207 | 441 | 289 | |||||||||||
Income From Continuing Operations | 330 | 328 | 741 | 469 | |||||||||||
Income (Loss) From Discontinued Operations, net of tax | — | 14 | (6 | ) | 10 | ||||||||||
Net Income | 330 | 342 | 735 | 479 | |||||||||||
Less: Net Income Attributable to Noncontrolling Interest | 1 | 1 | 2 | 2 | |||||||||||
Net Income Attributable to Parent | $ | 329 | $ | 341 | $ | 733 | $ | 477 | |||||||
Net Income | $ | 330 | $ | 342 | $ | 735 | $ | 479 | |||||||
Other Comprehensive Income, net of tax | |||||||||||||||
Pension and OPEB adjustments | 1 | 4 | 2 | 5 | |||||||||||
Net unrealized loss on cash flow hedges | — | (3 | ) | — | — | ||||||||||
Reclassification into earnings from cash flow hedges | 1 | 3 | 5 | 3 | |||||||||||
Unrealized gain on investments in available-for-sale securities | 1 | — | 1 | — | |||||||||||
Other Comprehensive Income, net of tax | 3 | 4 | 8 | 8 | |||||||||||
Comprehensive Income | 333 | 346 | 743 | 487 | |||||||||||
Less: Comprehensive Income Attributable to Noncontrolling Interests | 1 | 1 | 2 | 2 | |||||||||||
Comprehensive Income Attributable to Parent | $ | 332 | $ | 345 | $ | 741 | $ | 485 |
(in millions) | September 30, 2014 | December 31, 2013 | |||||
ASSETS | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 47 | $ | 58 | |||
Receivables (net of allowance for doubtful accounts of $7 at September 30, 2014 and $14 at December 31, 2013) | 184 | 528 | |||||
Restricted receivables of variable interest entities (net of allowance for doubtful accounts of $8 at September 30, 2014) | 877 | 417 | |||||
Receivables from affiliated companies | 36 | 4 | |||||
Notes receivable from affiliated companies | 164 | 75 | |||||
Inventory | 1,509 | 1,424 | |||||
Regulatory assets | 566 | 353 | |||||
Other | 622 | 726 | |||||
Total current assets | 4,005 | 3,585 | |||||
Investments and Other Assets | |||||||
Nuclear decommissioning trust funds | 2,409 | 2,292 | |||||
Goodwill | 3,655 | 3,655 | |||||
Other | 792 | 804 | |||||
Total investments and other assets | 6,856 | 6,751 | |||||
Property, Plant and Equipment | |||||||
Cost | 37,796 | 36,480 | |||||
Accumulated depreciation and amortization | (13,397 | ) | (13,098 | ) | |||
Net property, plant and equipment | 24,399 | 23,382 | |||||
Regulatory Assets and Deferred Debits | |||||||
Regulatory assets | 4,818 | 4,155 | |||||
Other | 94 | 96 | |||||
Total regulatory assets and deferred debits | 4,912 | 4,251 | |||||
Total Assets | $ | 40,172 | $ | 37,969 | |||
LIABILITIES AND EQUITY | |||||||
Current Liabilities | |||||||
Accounts payable | $ | 636 | $ | 836 | |||
Accounts payable to affiliated companies | 265 | 123 | |||||
Notes payable to affiliated companies | 822 | 1,213 | |||||
Taxes accrued | 317 | 105 | |||||
Interest accrued | 192 | 181 | |||||
Current maturities of long-term debt | 318 | 485 | |||||
Regulatory liabilities | 106 | 207 | |||||
Other | 743 | 896 | |||||
Total current liabilities | 3,399 | 4,046 | |||||
Long-Term Debt | 14,194 | 13,630 | |||||
Deferred Credits and Other Liabilities | |||||||
Deferred income taxes | 3,999 | 3,283 | |||||
Accrued pension and other post-retirement benefit costs | 621 | 765 | |||||
Asset retirement obligations | 4,015 | 2,562 | |||||
Regulatory liabilities | 2,397 | 2,292 | |||||
Other | 515 | 527 | |||||
Total deferred credits and other liabilities | 11,547 | 9,429 | |||||
Commitments and Contingencies | |||||||
Common Stockholder's Equity | |||||||
Common stock, $0.01 par value, 100 shares authorized and outstanding at September 30, 2014 and December 31, 2013 | — | — | |||||
Additional paid-in capital | 7,467 | 7,467 | |||||
Retained earnings | 3,647 | 3,452 | |||||
Accumulated other comprehensive loss | (51 | ) | (59 | ) | |||
Total common stockholder's equity | 11,063 | 10,860 | |||||
Noncontrolling interests | (31 | ) | 4 | ||||
Total equity | 11,032 | 10,864 | |||||
Total Liabilities and Common Stockholder's Equity | $ | 40,172 | $ | 37,969 |
Nine Months Ended September 30, | |||||||
(in millions) | 2014 | 2013 | |||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net income | $ | 735 | $ | 479 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation, amortization and accretion (including amortization of nuclear fuel) | 985 | 764 | |||||
Equity component of AFUDC | (18 | ) | (39 | ) | |||
Community support and charitable contributions expense | — | 20 | |||||
Losses on sales of other assets | 1 | 3 | |||||
Impairment charges | (16 | ) | 368 | ||||
Deferred income taxes | 231 | 384 | |||||
Accrued pension and other post-retirement benefit costs | 20 | 158 | |||||
Contributions to qualified pension plans | — | (27 | ) | ||||
(Increase) decrease in | |||||||
Net realized and unrealized mark-to-market and hedging transactions | 28 | 33 | |||||
Receivables | (162 | ) | (219 | ) | |||
Receivables from affiliated companies | (32 | ) | 12 | ||||
Inventory | (45 | ) | 79 | ||||
Other current assets | (147 | ) | (102 | ) | |||
Increase (decrease) in | |||||||
Accounts payable | (73 | ) | (227 | ) | |||
Accounts payable to affiliated companies | 142 | 25 | |||||
Taxes accrued | 166 | 161 | |||||
Other current liabilities | (96 | ) | 113 | ||||
Other assets | (126 | ) | (223 | ) | |||
Other liabilities | (9 | ) | (64 | ) | |||
Net cash provided by operating activities | 1,584 | 1,698 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
Capital expenditures | (1,383 | ) | (1,739 | ) | |||
Purchases of available-for-sale securities | (609 | ) | (1,651 | ) | |||
Proceeds from sales and maturities of available-for-sale securities | 594 | 1,630 | |||||
Net proceeds from the sales of other assets | 2 | — | |||||
Notes receivable from affiliated companies | (89 | ) | (103 | ) | |||
Other | (39 | ) | 12 | ||||
Net cash used in investing activities | (1,524 | ) | (1,851 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
Proceeds from the: | |||||||
Issuance of long-term debt | 875 | 545 | |||||
Payments for the: | |||||||
Redemption of long-term debt | (479 | ) | (1,194 | ) | |||
Redemption of preferred stock of subsidiary | — | (96 | ) | ||||
Notes payable to affiliated companies | (391 | ) | 740 | ||||