DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For the test year ended December 31, 2016 1. Item No.1 Provide in comparative form, a total company income statement, a statement of changes in financial position, and a balance sheet for the test year and the twelvemonth period immediately preceding the test year. Please see attached "DEP Rate Case El 1 Financial Statements" DUKE ENERGY PROGRESS, LLC Item No.1 Docket No. E-2, Sub 1142 Balance Sheet NCUC FORM E-1 Data Request For the test year ended December 31, 2016 Title of Account (a) December 31, 2016 December 31, 2015 26,516,624,323 25,650, 168,277 UTILITY PLANT Utility Plant (101-106,114) 1,303,611,534 1,108,311,519 Total Utility Plant 27,820,235,857 26,758,479,797 (Less) Accum. Prov. for Depr. Arnort. Depl. (108, 110, 111, 115) 11,379,160,840 10,941,910,151 Net Utility and Plant 16,441,075,017 15,816,569,646 311,017,469 337,766,031 Construction Work in Progress (107) Nuclear Fuel in Process of Ref., Conv., Enrich., and Fab (120.1) Nuclear Materials and Assemblies - Stock Account (120.2) Nuclear Fuel Assemblies in Reactor (120.3) 62,792,088 0 836,611,115 822,011,827 Spent Nuclear Fuel (120.4) 269,992,039 206,799,870 (Less) Accum. Provision for Arnort. ofNuclear Fuel Assemblies (120.5) 730,006,410 644,547,755 Net Nuclear Fuel 750,406,301 722,029,973 17,191,481,318 16,538,599,619 Utility Plant Adjustments (116) 0 0 Gas Stored Underground - Noncurrent (117) 0 0 35,107,688 33,932,904 Total Net Utility Plant OTHER PROPERTY & INVESTMENTS Non Utility Property (121) (Less) Accum. Prov. for Depr. and Amort. (122) Investment in Subsidiary Companies (123.1) Noncurrent Portion of Allowances Other Investments (124) Other Special Funds (128) Long Term Portion of Derivative Instrument Assets (175) Long Term Portion of Derivative Assets - Hedges (176) Total Other Property and Investments 9,888,862 9,362,277 18,169,203 17,568,887 0 0 41,410,010 41,395,996 2,473,469,794 2,298,518,992 0 0 8,897,044 0 2,567,164,877 2,382,054,502 CURRENT AND ACCRUED ASSETS Cash (131) 10,348,376 13,554,701 <2l Special Deposits ( 132-134) 0 514,971 Working Funds (135) 0 0 Temporary Cash Investments (136) 0 0 Notes Receivable (141) 0 0 330,199,653 308,854,167 Other Accounts Receivable (143) 5,234,476 73,989,677 (Less) Accum. Prov. for Uncollectible Account - Credit (144) 5,968,264 6,099,951 Customer Accounts Receivable (142) 164,938,000 0 74,661,835 132,529,770 Fuel Stock (151) 262,286,714 312, 175,426 Plant Material and Operating Supplies ( 154) 780,734,297 739,816,167 Note Receivable from Associated Companies (145) Accounts Receivable from Associated Companies ( 146) Merchandise (155) Other Materials and Supplies (156) Allowances (158.1and158.2) (Less) Non-current portion of Allowances Store Expenses Undistributed (163) Gas Stored Underground - Current (164.1) Prepayments (165) Interest and Dividends Receivable ( 171) 0 0 163,973 91,590 86,749,196 82,444,163 0 0 32,787,942 36,190,599 0 0 44,574,206 39,015,713 0 0 DUKE ENERGY PROGRESS, LLC Item No.1 Docket No. E-2, Sub 1142 Balance Sheet NCUC FORM E-1 Data Request For the test year ended December 31, 2016 Title of Account (a) Rents Receivable (172) Accrued Utility Revenue (173) Miscellaneous Current and Accrued Assets ( 174) Derivative Instrument Assets (175) (Less) Long Term Portion of Derivative Instruments Assets Derivative Instrument Assets Hedges (176) (Less) Long Term Portion of Derivative Instruments Assets - Hedges Total Current and Accrued Assets December 31, 2016 December 31, 2015 131,731 151,210 125,363,222 103,763,934 0 0 723,557 841,823 0 0 44,131,820 844,835 -8,897,044 0 1,948,163,690 1,838,678,795 39,797,537 39,748,188 DEFERRED DEBITS Unamortized Debt Expenses (181) Extraordinary Property Losses (182.1) Unrecovered Plant and Regulatory Study Costs (182.2) Other Regulatory Assets ( 182. 3) 0 0 166,620,786 131,936, 167 3,099,341,503 2,804,070,065 Preliminary Survey and Investigation Charges (183) 2,936,284 3,509,698 Clearing Accounts ( 184) 4,503,190 Temporary Facilities (185) Miscellaneous Deferred Debits (186) -455 0 0 490,376,158 244,979,519 Unamortized Loss on Reaquired Debt (189) 6,643,127 7,716,478 Accumulated Deferred Income Taxes (190) 2,083,860,008 1,942,751,307 U nrecovered Purchased Gas Costs ( 191) Total Deferred Debits Total Assets 0 0 5,894,078,593 5,174,710,967 27,600,888,478 25,934,043,883 PROPRIETARY CAPITAL Common Stock Issued (201) 0 0 Preferred Stock Issued (204) 0 0 Premium on Capital Stock (207) 0 0 Other Paid In Capital (208-211) 2,784,376,571 2,784,376,571 (Less) Capital Stock Expense (214) Retained Earnings (215, 215.1, 216) Unappropriated Undistributed Subsidiary Earnings (216.1) Reaquired Capital Stock (217) 0 0 4,860,407,802 4,561,423,673 (286,334,903) 0 Accumulated Other Comprehensive Income (219) Total Proprietary Capital -206,646 (286,751,535) 0 -232,257 7 ,358,242,824 7,058,816,452 6,473,485,000 6,023,485,000 LONG-TERM DEBT Bonds (221) Advances from Associated Companies (223) 150,000,000 150,000,000 Other Long Term Debt (224) 300,000,000 253,793,610 Unamortized Premium on LT Debt (225) (Less) Unamortized Discount on LT Debt (226) Total Long Term Debt 0 0 16,440,408 16,245,840 6,907 ,044,593 6,411,032,770 139,410,389 141,917,584 OTHER NONCURRENT LIABILITIES Obligations Under Capital Leases (227) 0 0 Accumulated Provision for Injuries and Damages (228.2) 8,664,132 5,954,466 Accumulated Provision for Pensions and Benefits (228.3) 232,000,482 240,363,326 Accumulated Miscellaneous Operating Provisions (228.4) 21,985,322 23,665,414 Accumulated Provision for Property Insurance (228.1) DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC FORM E-1 Data Request For the test year ended December 31, 2016 Title of Account (a) Item No.1 Balance Sheet December 31, 2016 December 31, 2015 Accumulated Provision for Rate Refund (229) 0 0 LT Portion of Derivative Instrument Liabilities 5,574,632 4,807,558 LT Portion of Derivative Instrument Liabilities - Hedges Asset Retirement Obligations (230) Total Other NonCurrent Liabilities 156,050 15,357,740 4,507,556,500 4,567,093,298 4,915,347,507 4,999,159,386 CURRENT AND ACCRUED LIABILITIES Notes Payable (231) 0 Accounts Payable (232) 592,188,925 0 393,902,836 <2l 0 209,278,000 Accounts Payable to Associated Companies (234) 220,219,478 201,036,264 Customer Deposits (235) 141,048,805 146,157,468 Consolidated Taxes Accrued 107,826,421 18,130,917 Interest Accrued (237) 102,928,865 95,980,630 Notes Payable to Associated Companies (233) Dividends Declared (238) Tax Collections Payable (241) Miscellaneous Current and Accrued Liabilities (242) 0 0 5,107,439 9,696,116 386,629,419 169,717,984 Obligations Under Capital Leases - Current (243) 2,507,196 2,197,254 Derivative Instrument Liabilities (244) 5,574,632 4,807,558 (Less) LT Portion of Derivative Instrument Liabilities 5,574,632 4,807,558 156,050 91,316,091 Derivative Instrument Liabilities - Hedges (245) (Less) LT Portion of Derivative Instrument Liabilities - Hedges Total Current and Accrued Liabilities 156,050 15,357,740 1,558,456,548 1,322,055,820 DEFFERED CREDITS Customer Advances for Construction (252) Accumulated Deferred Investment Tax Credits (255) Other Deferred Credits (253) 23,027,797 20,800,811 146,399,648 131,604,359 56,303,593 41,651,820 1,228,887, 118 978,680,077 Unamortized Gain on Reaquired Debt (257) 0 0 Accumulated Deferred Income Taxes (281) 0 0 3,902,880,700 3,739,969,531 Other Regulatory Liabilities (254) Accumulated Deferred Income Taxes 0th Property (282) Accum Deferred Income Tax Other (283) 1,504,298,151 1,230,272,857 Total Deferred Credits 6,861,797,007 6,142,979,455 27,600,888,478 25,934,043,883 Total Liabilities and Other Credit Note(s): (1) Detail amounts may not add to totals shown due to rounding. (2) Amount has been restated to reflect the reclassification of negative cash balances from Account 131 to Account 232 in order to be consistent with the current year presentation. DUKE ENERGY PROGRESS, LLC Item No.1 Docket No. E-2, Sub 1142 Income Statement NCUC FORM E-1 Data Request For the test year ended December 31, 2016 Title of Account (a) December 31 2016 December 31 2015 UTILITY OPERATING INCOME Operating Revenues (400) 5,265,756,021 5,266,192,917 Operating Expenses 2,740,384,579 2,932,930,249 Maintenance Expenses (402) 562,811,662 566,973,061 Depreciation Expenses (403) 604,487,167 573,292,400 Operation Expenses (401) Depreciation Expense for Asset Retirement Costs (403 .1) Amortization and Depletion of Utility Plant (404-405) 0 0 31,071,436 20,789,048 Amortization of Utility Plant Acq. Adj. (406) 12,758,733 5,316,139 Amortization of Prop Loss, Unrecov Plant and Reg Strudy Cost (407) 30,447,884 30,164,426 Regulatory Debits (407.3) 165,027,228 130,066,214 (Less) Regulatory Credits 161,345,859 165,833,131 Taxes Other Than Income Taxes (408.1) 153,758,259 138,313,094 Income Taxes Federal (409.1) (53,582,117) (41,758,619) Income Tax - Other (409 .I) (23,847,119) Provision for Deferred Income Taxes (Less) Provision for Deferred Income Tax Credit Investment Tax Credit Adjustment Net (411.4) (2,237,790) 1,223,186,084 1,331,405,049 840,004,091 994,501,019 (5,304,895) (6,690,167) (Less) Gains from Disposition Utility Plant 0 Losses from Disposition Utility Plant (411. 7) 0 0 (Less) Gains from Disposition of Allowances 364,445 375,837 0 0 4,439,484,506 4,517,853,117 826,271,515 748,339,800 Revenues from Merchandising, Jobbing and Contract Work (415) 0 0 Costs and Exp. of Merchandising Job and Contract Work (416) 0 0 Revenues from Nonutility Operations (41 7) 25,518,661 25,698,650 (Less) Expenses ofNonutility Operations (417.1) 14,426,348 17,191,434 Accretion Expense (411.10) Total Utility Operating Expenses Net Utility Operating Income Non Operating Rental Income (418) Equity in Earnings of Subsidiary Companies (418.1) (524,788) 0 (305,192) 450,644 554,638 3,062,143 1,861,330 Allowance for Other Funds Under Construction (419.1) 49,614,088 47,191,939 Miscellaneous Nonoperating Income 10,386,161 19,096,739 Interest and Dividend Income (419) Gain On Disposal Of Property 1,274,712 1,170,799 75,355,273 78,077,469 118,435 0 0 0 Donations (426.1) 37,429,332 2,593,653 Life Insurance (426.2) (1,078,345) Total Other Income Loss on Disposition of Property (421.2) Miscellaneous Amortization (425) Penalties (426.3) Exp. For Certain Civic, Political and Related Activity (426.4) Other Deductions (426.5) Total Other Income Deductions Taxes Applic. to Other Income and Deductions (430,035) 700,300 90,333 2,526,385 2,545,061 1,811,310 5,690,757 41,507,417 10,489,769 DUKE ENERGY PROGRESS, LLC Item No.1 Docket No. E-2, Sub 1142 Income Statement NCUC FORM E-1 Data Request For the test year ended December 31, 2016 Title of Account (a) December 31 2016 December 31 2015 1,790,277 2,085,912 Income Taxes - Federal (409.2) (4,877,441) 1,725,244 Income Tax Non Utility (409 .2) (1,164,465) 1,626,643 Provision for Deferred Income Taxes (410.2) 21,619,976 58,188,618 (15,873,635) (54,326,927) Taxes Other than Income Taxes (408.2) Provision for Deferred Income Tax Credit (411.2) Investment Tax Credit Adjustments - Net (411.5) Total Taxes on Other Income and Deductions Net Other Income and Deductions 0 0 1,494,712 9,299,490 32,353,144 58,288,210 Interest Charges 264,245,568 251,576,189 Amortization of Debt Discount and Exp (428) Total Interest on Long - Term Debt (427) 5,159,109 6,022,976 Amortization of Loss on Reaquired Debt (428.1) 1,073,351 1,121,112 Amortization on Premium of Debt-Credit (429) Interest on Debt to Associated Companies (430) Other Interest Expense (431) 0 0 1,889,048 299,640 3,708,098 1,556,765 16,851,277 20,432,479 259,223,897 240,144,203 599,400, 762 566,483,807 Extraordinary Deductions (435) 0 0 Net Extraordinary Items 0 0 Income Taxes Federal and Other (409.3) 0 0 Extraordinary Items After Taxes 0 0 599,400, 762 566,483,807 (Less) Allowance for Borrowed Funds Used During Construction - CR(432) Net Interest Charges Income Before Extraordinary Items Extraordinary Items Net Income Note(s): Detail amounts may not add to totals shown due to rounding. DUKE ENERGY PROGRESS, LLC Item No.1 Docket No. E-2, Sub 1142 Statement of Changes in Financial Position NCUC FORM E-1 Data Request For the test year ended December 31, 2016 Description CASHFLOWS FROM OPERATING ACTIVITIES Net Income Noncash Charges (Credits) to Income: Depreciation and Depletion Amortization and Accretion Net (Increase) Decrease in Mark-to-Market and Hedging Transactions Contributions to Company-Sponsored Pension Plans Deferred Income Taxes (Net) Investment Tax Credit Adjustment (Net) (Increase) Decrease In: Receivables Inventory Allovvancesinventory Other Regulatory Assets Increase (Decrease) In: Payables and Accrued Expenses Other Regulatory Liabilities (Less) Allovvance for Other Funds Used During Construction (Less) Undistributed Earnings from Subsidiary Companies Other: Asset Retirement Obligation Liabilities Settled Change in Other Noncurrent Assets Change in Deferred Credits and Other Long-Term Liabilities Change in Prepaid and Other Current Assets Gain on Sale of Assets Equity Method Investment Income Impairment Accrued Charitable Contributions Related to Piedmont Merger Commitments Accrued Pension and Other Post-Retirement Benefit Costs Adj to NI Net Cash Provided by (Used in) Operating Activities December 31, 2016 December 31, 2015 599,400,762 566,483,807 604,487,167 304,012,226 4,425,410 (23,739,545) 388,928,334 (5,304,895) 573,292,400 258,823,097 (3,386,879) (42,494,366) 340,765,721 (6,690,167) 119,196,972 12,300,856 (26,396,581) 201,641,683 (50,031,030) (21,444,279) 35,266,347 80,571,665 322,632,164 26,379,454 49,614,088 450,644 18,707,717 (Z) (211,819,383) (146,534,095) (16,467,814) (5,784,574) (5,577,429) 801,681 633,767 32,345,924 (32,078,748) 1,927,043,268 23,205,346 47,191,939 554,638 (108,561,936) (103,668,146) (45,082,689) (18,212,450) (6,327,135) 1,337,616 4,749,825 0 (14,117,796) 1,601,815,427 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC FORM E-1 Data Request Item No.1 Statement of Changes in Financial Position For the test year ended December 31, 2016 CASHFLOWS FROM INVESTMENT ACTIVITIES Construction and Acquisition of Plant (including land): Gross Additions to Utility Plant (less nuclear fuel) Gross Additions to Nuclear Fuel Gross Additions to Common Utility Plant Gross Additions to Nonutility Plant (Less) Allowance for Other Funds Used During Construction Other Additions from Affiliated Companies Acquisition of Other Noncurrent Assets Proceeds from Disposal ofNoncurrent Assets Proceeds from Sales to Affiliated Companies Investments in and Advances to Assoc. and Subsidiary Companies Contributions and Advances from Assoc. and Subsidiary Companies Disposition of Investments in (and Advances to) Associated and Subsidiary Companies Purchase of Investment Securities Proceeds from Sales of Investment Securities Loans Made or Purchased Collections on Loans (Increase) Decrease In: Receivables Inventory Allowances Held for Speculation Increase (Decrease) In: Payables and Accrued Expenses Other: Miscellaneous Property Activity Joint Owner Portion of Nuclear Escalation Studies Year to date Cost of Removal Activity Company-Owned Life Insurance Death Proceeds Death Proceeds from COLI and Rabbit Trust Net Cash Provided by (Used in) Investing Activities (1,469,812,476) (209,562,613) 0 (1,174,784) 49,614,088 0 (2,623,342) 0 4,211,328 0 (165,904,339) 74,931 0 (1,657,522,217) 1,619,065,118 0 0 (1,262,713,419) (355,198,067) 0 (106,142) 47,191,939 0 (16,071,435) (1, 194, 760,576) 0 0 236,320,349 1,200,000 0 (726,916,616) 677,156,466 0 0 0 0 0 0 (55,814,527) 0 0 1,947,021 0 0 19,937,173 0 2,832,633 (1,910,092,676) (35,395,103) (19,900) 3,871,742 0 (2, 773,692,146) DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC FORM E-1 Data Request Item No.1 Statement of Changes in Financial Position For the test year ended December 31, 2016 CASHFLOWS FROM FINANCING ACTIVITIES Proceeds from Issuance of: Long-Term Debt Preferred Stock Common Stock Other Equity Contribution from Parent Net Increase in Short-Term Debt Other Other Financing Activities Payments for Retirement of: Long-term Debt Preferred Stock Common Stock Other Net Increase (Decrease) in Intercompany Notes Net Decrease in Short-Term Debt (c) Dividends Paid to Parent Dividends on Preferred Stock Dividends on Common Stock Net Cash Provided by (Used in) Financing Activities 508,607,709 0 0 0 0 0 0 (4,255,524) 1,194,926,000 0 0 0 625,000,000 0 0 (9,993,680) (15,746,073) 0 0 0 (209,278,000) 0 (300,000,000) 0 0 (20,671,888) (991,072,645) 0 0 0 359,278,000 0 0 0 0 1,178,137 ,675 Net Increase (Decrease) in Cash and Cash Equivalents (3,721,296) 6,260,956 <2l Cash and Cash Equivalents at Beginning of Period 14,069,672 7,808,716 Cash and Cash Equivalents at End of period 10,348,376 (Z) 14,069,672 <2l Note(s): {1) Detail amounts may not add to totals shown due to rounding. (2) Amount has been restated to reflect the reclassification of negative cash balances from Account 131 to Account 232 in order to be consistent with the current year presentation. DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For the test year ended December 31, 2016 2. Item No. 2 Provide a trial balance as of the last day of the test year. All income statement accounts should show activity for total twelve (12) months showing account number, account title, and amount. Clearly identify accounts maintained on a total company basis and accounts maintained on a jurisdictional basis (indicate jurisdiction). Show the balance in each control and all underlying subaccounts per company books. Any differences between the amounts contained in this item and Item I should be reconciled and explained in sufficient detail. Please see attached "DEP Rate Case El 2 Trial Balance" DUKE ENERGY PROGRESS, LLC Item No. 2 Docket No. E-2, Sub 1142 NCUC FORM E-1 Data Request For the test year ended December 31, 2016 Balance Sheet Account - Account Description Assets 0101000 - Property Plant and Equipment 0101710 - EPIS Contra ADC - RETAIL- NC 0101720 - EPIS Contra ADC - RETAIL- SC 0101730 - EPIS Contra ADC - WHOLESALE 0101499 -Asset Retirement Obligations 0101130 - CAP LEASE - NCEMC 0101711 - EPIS-HARRIS DSLW 0101770 - EPIS Contra ADC - PC 0101315 -ARO Asset- Coal Ash Production 0114000 - Elec Plant Acquisition Adj Electric Plant Acquisition Adjustment 0101100 - LT Capital Lease Asset Utility Plant Held Under Capital Lease 0105100 - Pit Held For Future Use -Wo Sys 0105200 - Pit Held For Future Use - Prs 0106601 - CCNC Other inc Intangibles Electric Plant for Future Use 0106000 - Comp Const Unclassified Completed Contr, Not Yet Other Utility Plant Utility Plant (101-106,114) 0107000 - SCHM Cwip Construction Work in Progress (107) Total Utility Plant 0111100 - Ace Prov - Amor Elec Pit in Ser 0115000 - Ace Prov Pit Acquis Adj Accumulative Provision for Depreciation Elec 0108600 - SCHM Retirement Wip Retirement Work In Progress Electric 0108499 - Aro Asset Accum Depreciation 0108000 - Accumulated DDandA - Ppande 0108301 - Accum Depreciation COR 0108620 - RWIP - Reg Liab 0108710 - DEPR Contra ADC - RETAIL - NC 0108720 - DEPR Contra ADC - RETAIL - SC 0108730 - DEPR Contra ADC -WHOLESALE 0108155 - FAS 143 COR CONTRA 0108406 - ACC DEPR HARRIS DSLW 0108408 -ACCELERATED DEPRECIATION NCUC 0108409 -ACCELERATED DEPRECIATION SCPSC 0108740 -Ace DEPR Contra ADC - PC 0108741 -Ace DEPR-WH RT 988 0108742 -Ace DEPR-WH RT PA 0108743 -Ace DEPR-WH RT Diff 0108744 -Ace DEPR-SC RT Diff 0108315 -ARO Accum Depr- Coal Ash 0108640 - ARO Liability - Ash Mgmt EXT RESERVE DECOMM Accum Prov for Depr Amort Depl (108, 110, 111, 115) Net Utility and Plant 0120100 - Nuclear Fuel in Process December 2016 21,923, 112,997 (322, 147 ,308) (36,350,250) (36,939,348) 895,270,628 18,688,796 (551,297,291) (6,794,243) 825,663, 146 22, 709,207' 128 349,801,943 349,801,943 123,228,789 123,228,789 25,594,435 17,631,879 43,226,314 3,291,160,150 3,291,160,150 3,807,417,196 26,516,624,323 1,303,611,534 1,303,611,534 27 ,820,235,857 (272,863,816) (18,07 4,872) (290,938,688) (256,179,591) (256,179,591) (166,587,784) (9,570,351, 145) (1,374,240,577) 188,487 ,949 219,434,855 22,653,960 23,727,739 26,235,987 339, 149,863 (365,935,984) (67 ,697 ,865) 5,046,589 8,344,193 3,300,361 409,579 26,742,417 (151,852,704) 1,090,006 (10,832,042,561) (11,379, 160,840) 16,441,075,017 311,017,469 DUKE ENERGY PROGRESS, LLC Item No. 2 Docket No. E-2, Sub 1142 NCUC FORM E-1 Data Request For the test year ended December 31, 2016 Balance Sheet Account - Account Description Nuclear Fuel in Process of Ref., Conv., Enrich., and Fab (120.1) 0120510 -Ace Amor- Nuc Fuel Assemblies 0120512 - Nuclear Fuel Retirements 0120550 -Ace amort-Canister-Oconee Rob 0120551 -Ace Amor-Canister McGuire Brun Accum. Provision for Amort. of Nuclear Assemblies (120.5) 0120200 - Nuclear Fuel Material and Assemb Nuclear Materials and Assemblies - Stock Account (120.2) 0120300 - Nuc Fuel Assemblies in Reactor Nuclear Fuel Assemblies in Reactor (120.3) 0120400 - Spent Nuclear Fuel Assemblies Spent Nuclear Fuel (120.4) Nuclear Fuel Nuclear Fuel, Net - GB Net Nuclear Fuel Total Net Utility Plant 0121500 - NonUtility- Construction Wip 0121600 - Comp Const Not Classified - Nonu 0121000 - NonUtil Prop - General Non Utility Property ( 121) 0122200 - NonUtility- Rwip 0122000 - DDandA - NonUtil Prop - Gen Accum Prov for Depr and Amort Non-Utility (122) Other Property, net - at cost 1231005 - Investment in Sub - Equity 1231015 - Current Year Earnings of Sub - Loaded 0123250 - ICNetting -Advance 0123201 - Carohome NR 0123202 - Carohome IR - HGA 0123203 - Carohome IR - GAR Investment in Subsidiary Companies (123.1) 0124100 - Stocks and Bonds in Other Co. 0124400 - Cash Surrender Value - Life 0124401 - Csv - Loans 0124109 - Investment in APOG 0124120 - Kinetic Ventures VI 0124121 - Kinetic Ventures VII Other Investments (124) 0128804 - Rabbi Trust 0128805 - Coli Prepaid Premium 0128921 - Robinson 2 Qualified Trust 0128922 - Robinson 2 Nonqualified Trust 0128923 - Brunswick 1 Qualified Trust 0128924 - Brunswick 1 Nonqualified Trust 0128925 - Brunswick 2 Qualified Trust 0128926 - Brunswick 2 Nonqualified Trust 0128927 - Harris Qualified Trust 0128928 - Harris Nonoqualified Trust 0128920 - DEP General Nonqualified Trust Other Special Funds Decommision 0128716 - Prefunded Pension (major) 0128717 -Prefunded Pension Other Special Funds December 2016 311,017,469 (1, 119,618,360) 368,688,224 7,655,836 13,267,890 (730,006,410) 62,792,088 62,792,088 836,611,115 836,611,115 269,992,039 269,992,039 1, 169,395,242 439,388,832 750,406,301 17,191,481,318 860,541 3,373,967 30,873,180 35,107,688 (3,595) (9,885,267) (9,888,862) 25,218,825 6,930,081 450,644 8,514,278 1,919,241 354,960 18, 169,203 6,277 79,436,537 (38,032,803) 41,410,010 124,697,855 329,922 559,286,638 29,685,406 360, 188,566 165,028,820 413,078, 702 160,475,156 411,286,845 91,776,309 25,978,318 2,341,812,537 131,657,257 131,657,257 DUKE ENERGY PROGRESS, LLC Item No. 2 Docket No. E-2, Sub 1142 NCUC FORM E-1 Data Request For the test year ended December 31, 2016 Balance Sheet Account - Account Description Other Special Funds (128) Total Investments and Other Assets 0176002 - 3rd Party Derivative Asset Long-Term Long Term Portion of Derivative Assets - Hedges (176) Total Other Property and Investments 0131100 - Cash -Various Banks 0131203 - Cash BOA 1925 PEC 0131205 - Cash Mellon 0469 PEC 0131225 - Cash Wells 7601 PEC 0131227 - Cash Wells 0020 PEC 0131234 - Cash Wells 4827 PEC 0131212 - Cash Mellon 2331 PEC 0131031 - Cash Wells 0174 DEP Cash (131) 0134200 - Misc Special Deposits Other Special Deposits Special Deposits (132-134) Total Cash 0142011 -Accounts Receivable Other 0142200 - Gust Acct - Edp 0142801 -AIR-Passport Interface 0142830 -AIR-Merch/Jobb/Contract Work 0142001 -AR NON-REG 0142430 -AR Wholesale Billed 0142050 - Transmission Billing 0142440 -AIR BPM - Actual 0142802 -AIR - Gas Customer Accounts Receivable (142) 0143011 -AIR - Other - Gen Acctg 0143110 - Misc AIR - Clearing 0143130 - Misc AIR - Stores 0143180 - Ret Med Life Den/Prem Withheld 0143230 - Pole Attach Rental - Sou Bell 0143290 - Misc Coal AIR 0143320 - Mar Billed - Edp 0143430 - Wholesale Revenue - Billed 0143650 - Stimulus Accounts Receivable (I) 0143222 - LT Tax Reclass Fed Dr 0143223 - LT Tax Reclass State Dr 0143272 - Misc Accts Rec-EA 0143927 - Employee Receivables 0143155 - Other AIR - Miscelleneous 0143022 -AIR Byproducts 0143023 -AIR Byproducts - Gypsum 0142999 -AR Estimate Unbilled 0143711 -Accrued NCEMPA Rec - Contra (I) 0143712 - NCEMPA Rec Other 0143342 - Receivables Misc Transactions 0143970 - State Tax Refunds - External 0143985 - LT Franchise Tax Rec - Ext Other Accounts Receivable (143) 0146000 - Electric lnterunit Account 0146006 - IC Moneypool - Interest Receiv December 2016 2,4 73,469, 794 2,522,260,529 8,897,044 8,897,044 2,567' 164,877 102,254,637 5,988,466 5,236,288 (1,399,080) (4,315,075) (28,295) 29,991 (97 ,418,556) 10,348,376 10,348,376 225,710,316 (152,998) 2,805,655 137,315 92,956,299 6,210,850 (21,947) 2,554, 163 330, 199,653 9,869, 128 5,090,208 1,759 1,274,050 1,751,951 8,946,371 7,595,858 93 512,597 4,520 1,320 162,376 6,142 (32,708,634) 2,700,846 15,000 10,891 5,234,476 (13,262,893) 5,864 DUKE ENERGY PROGRESS, LLC Item No. 2 Docket No. E-2, Sub 1142 NCUC FORM E-1 Data Request For the test year ended December 31, 2016 Balance Sheet Account - Account Description 0146009 - l/C AR Rollup 0146250 - IC Netting -Accts Receivable 0146104 - IC Accounts Receivable 0146992 - Federal Tax Refunds - lnterco 0146994 - State Tax Refunds - lnterco 0146998 - Franchise Tax - lnterco - PN 0146996 - Franchise Tax - lnterco 0146991 - LT Franchise Tax Rec - lnterco Accounts Receivable from Associated Companies (146) 0172004 - Rents Rec-Real Estate Rents Receivable (172) 0173100 - Unbilled Revenue Receivable Accrued Utility Revenue (173) 0145004 - IC Moneypool - ST Notes Receiv Note Receivable from Associated Companies (145) Receivables 0144330 -Allowance For Doubtful Account 0144700 - Prov for MARBS Uncollectibles Accum Prov for Uncollectible Account (144) Receivables, Net 0151130 - Coal Stock 0151131 - Coal Stock in Transit Coal Stocks 0151140 - Diesel Fuel Stock 0151170 - Oil Stock in Transit Fuel Stock Oil 0151660 - Natural Gas Inventory Fuel Stock (151) Fuel Stock (151) 0154100 - Inventory 0154140 - Misc Inventory 0154200 - Limestone Inventory 0154990 - Schm Inv Cr - Surplus Mat'L ldent 0154122 - Limestone In Transit Inventory Plant Material and Operating Supplies (154) 0158150 - S02 Current Vintage 0158120 - RECs - DE Carolinas - NC Allowances (158.1 and 158.2) 0163110 - Stores Expense 0163160 - Stores Exp Distribution - Credit 0163180 - Freight and Express Store Expenses Undistributed (163) 0156010 - Other M&S /Inventory Other Materials and Supplies (156) Inventory - at average cost 0165075 - lnterco Prepaid lnsu SchM 0165100 - Unexpired Insurance 0165120 - Unexpired Insurance - Nuclear 0165400 - Misc Prepaid Expenses O165011 - Ppd - Software - Purchase 0165513 - Prepaid Expense - Misc. 0165555 - Prepaid Inv - Solar Recs 0165538 - LTSA- Long Term Portion FTG December 2016 (153,617,028) 169,424,504 316,965 28,552 15,841,512 55,924,359 74,661,835 131,731 131,731 125,363,222 125,363,222 164,938,000 164,938,000 700,528,918 (5,000,000) (968,264) (5,968,264) 705,349, 133 139,878,691 7,504,683 147,383,374 114,902,296 1,044 114,903,340 262,286,714 777,024,202 4,006,445 4,810,899 (5,323,359) 216,110 780,734,297 2,300,332 84,448,864 86,749,196 28,985,761 3,629,505 172,676 32,787,942 163,973 163,973 1, 162,722, 122 12 2,272,101 367, 121 361,605 41,007,603 DUKE ENERGY PROGRESS, LLC Item No. 2 Docket No. E-2, Sub 1142 NCUC FORM E-1 Data Request For the test year ended December 31, 2016 Balance Sheet Account - Account Description 0165008 - LTSA Prepaid Richmond 0165009 - Prepaid Inv - Solar Recs Prepayments (165) 0175001 - Deriv Assets - Noncashflw - ST Derivative Instrument Assets Current Derivative Instrument Assets (175) 0176001 - 3rd Party Derivative Asset Current 0176003 - Accrued Interest Recv - Swaps L T Portion of Derivative Instruments Assets Hedges (CALC) Derivative Instrument Assets Hedges ( 176) (Less) Long Term Portion of Derivative Instruments Assets - Hedges Current Assets Total Current and Accrued Assets 0181400 - Credit Facilities Fee 0181021 - Unamortized Debt Expense 0181544 - PEC DOE 200M 5.70% 2035 0181546 - PEC DOE 325M 6.30% 2038 0181547 - PEC DOE 600M 5.30% 2019 0181549- PEC DOE 200M 6.125% 2033 0181566 - PEC DOE 100M 8 5/8% 09/15/21 0181567- DEP 500M 3.00% 9-15-21 0181568- DEP 500M 2.80% 5-15-22 0181572- DEP DOE 500M 4.10% 5-15-42 0181573- DEP DOE 500M 4.10% 3-15-43 0181574 - DEP DOE 48M Wake 2002 Refn 2013 0181075 - DEP 400M 4.375% 3/30/2044 0181076 - DEP 250M Floating 3/6/2017 0181044 - DEP 200M Floating 11/20/17 0181043- DEP 500M 4.15% 12/1/44 0181051 - DEP 500M 3.25% 8/15/2025 0181052 - DEP ?QOM 4.20% 8/15/2045 0181056 - Unamortized Debt Exp - CurrLTD 0181053 - 2016 Q3/Q4 Issuance - Unam Deb Unamortized Debt Expenses (181) 0189000 - Schm Unamt Loss Reaq Dt Pre Sc 0189007 - ST UNAMT LOSS REACQDEBT-TOTAL Unamortized Loss on Reaquired Debt (189) Debt expense (refinancing costs, amortized over terms) 0182204 - Bruns Design Basis Deferral 0182205 - Bruns Design Basis Def - Amort 0182206 - Rob Design Basis Deferral 0182207 - Mayo 2 Amortization-WH 0182208 - Rob Design Basis Def-Amort 0182218 - Cape Fear CT - Retail 0182219 - Cape Fear CT - Wholesale 0182215 - Cape Fear Fossil - Retail 0182216 - Cape Fear Fossil - Wholesale 0182217 - Robinson Fossil - Retail 0182285 - Lee CT - Wholesale 0182286 - Lee Fossil -Wholesale 0182280 - Lee CT - Retail 0182255 -Weatherspoon Fossil - Retail 0182256 -Weatherspoon Fossil - Wholesale December 2016 565,764 44,574,206 723,557 723,557 723,557 34,764,707 470,069 8,897,044 44, 131,820 (8,897,044) 1,948, 163,690 1,948, 163,690 2,050,876 (756, 147) 1, 172,381 2,271,498 909,919 1, 129,730 88,632 1,804,045 2,092,946 4,226,580 4,337,891 548, 146 3,273,469 4,336,808 2,423,891 5,749,297 338,076 3,799,499 39,797,537 5,609,590 1,033,537 6,643, 127 46,440,663 35,107,437 (24,343,333) 13,982,544 471,774 (11,619,444) (140,835) (39,974) 3,804,080 4,872,281 30,848,676 484,826 6,613,616 1,049,037 5, 123,274 3,324,776 DUKE ENERGY PROGRESS, LLC Item No. 2 Docket No. E-2, Sub 1142 NCUC FORM E-1 Data Request For the test year ended December 31, 2016 Balance Sheet Account - Account Description 0182263 - Morehead City CT - Retail 0182264 - Morehead City CT -Wholesale 0182265 - Sutton Fossil - Retail 0182266 - Sutton Fossil - Wholesale 0182267 - Robinson Fossil -Wholesale 0182212 - Lee Fossil - Retail 0182223 - Harris COLA- Wholesale 0182224 - Harris COLA- Retail Unrecovered Plant and Regulatory Study Costs (182.2) 0182320 - Regulatory Asset- Inc Tax Regulatory Asset Tax 0182340 - Sch M: Vac Accrual Reg Asset 0182399 - Aro Regulatory Asset 0182312 - Oprb FAS 106 - Medical 0182323 - Rate Case Cost NC CUR 0182410 - Interest Rate Swap Reg Asset 0182800 - Ace Pen Post Ret Pur Acct-Qual 0182801 - Pension Post Retire P Acctg - FAS87 NQ 0182342 - Deferred Asset 0182318 - Other Reg Assets - Gen Acct 0182361 - SC Save A Watt Reg Asset 0182359 - REPS Incremental Costs 0182381 - Save a Watt Reg Asset 0182390 - SC GridSouth Reg Asset 0182701 - 2009 Ice Storm Costs 0182393 - Deferred VOP Costs 0182411 - Deferred Fuel Exp-Current Year 0182408 - NC Retain Defer Fuel Clause 0182491 - Pollution Control SC Deferral 0182420 - Deferred Fuel Retail 0182423 -Wayne Deferred Cost 0182424 -Wayne Return on Deferral 0182427 - SC Wayne Deferred Cost 0182428 - NC Nuclear Levelization 0182430 - Coal Inventory Rider NC 0182431 - NC Nuclear Levelize Cur 0182432 -Wayne Deferred Cost Current 0182321 - REG ASSET-DERIV MTM OIL 0182332 - Storm Deferral 0182433 - Rate Case Cost NC LT 0182449 - Fukushima CyberSecurity Def-SC 0182443 - SC Sutton Deferred Cost 0182441 - Sutton Return on Deferral 0182470 - Reg Asset- Coal Ash Pond ARO (I) 0182315 - Reg Asset- Coal Ash Pond ARO 0182040 - SC Long-Term Deferred Fuel 0182458 - NC Long-Term Deferred Fuel 0182479 - NCEMPA Purchase Deferral NC 0182480 - NCEMPA Purchase Deferral SC 0182494 - Deferred Asset- SC DERP 0182484 - NC Regulatory Fee 0182485 - NCEMPA Short-Term Reg Asset Misc Regualtory Assets December 2016 (119,426) (18,323) 21,189,747 11,843,395 13,498,085 2,987,191 7,071,376 40,630,006 166,620,786 300,278,399 300,278,399 37,760,330 289,851,494 37,707,604 595,603 5,574,632 6,879,787 504,778 378,619,594 34,247,581 (199,621) 228,555,643 3,676, 168 2,886,989 35,786,934 8,744,292 2, 164,536 (20, 156,082) 40,285,542 9,504,431 28,821,470 4,583,419 163,800 14,713,413 248,170 4,099,635 22,293,707 (11,366,989) 19,976,019 1,534,526,003 311,986 16, 111,823 35,788,403 16,881,000 557,517 1, 127,493 7,236,000 2, 799,063, 104 DUKE ENERGY PROGRESS, LLC Item No. 2 Docket No. E-2, Sub 1142 NCUC FORM E-1 Data Request For the test year ended December 31, 2016 Balance Sheet Account - Account Description Other Regulatory Assets (182.3) 0183000 - Prelim Survey and Investigation Preliminary Survey and Investigation Charges (183) 0804110 - Unproductive Time Distributed 0804210 -Vacations 0804220 - Holidays 0804290 - Other Excused Absences 0804330 - Sick 0184500 - Departmental and Other Clearing 0184023 - Clearing Payroll Fixed Distr Clearing Accounts (184) 0186120 - Misc. Wip - Fp Dist. Wids 0186290 - 0th Deferred Charges - Operation 0186802 - Acer Pen FAS 158 - Qua I 0186661 - Reserve Equity- Solar 0186031 - Gas Pipeline Charges-ST 0186022 - ST Asset Closed Def Int Hedge 0186610 - PEC Unrecovered Plant 0186605 - Misc Defer Debit Workers Comp 0186283 - Hedge Asset Pre-Tax 0186195 - Deferred PEC Rate Case Expens 0186998 - Fukushima Pooled Inventory Opt 0186295 - Deferred Storm Expenses 0186041 - Def Dr - Gas Acctg 0186181 - COR Settlement- NC 0186317 - Coal Ash Spend - SC Retail 0186318 - Coal AshSpend -Wholesale 0186251 - Contra Equity Coal Ash Spend RA 0186316 - Coal Ash Spend - NC Retail 0186055 - NCEMPA SC Equity Reserve Other Deferred Charges Miscellaneous Deferred Debits (186) 0190001 - Adit: Prepaid: Federal Taxes 0190002 - Adit: Prepaid: State Taxes 0190051 -Accum Deferred FIT-OCI 0190052 -Accum Deferred SIT-OCI 0190155 - Deferred Tax - Nol 0190156 - Deferred Tax_State NOLs 0283020 - Valuation Allowance Accumulated Deferred Income Taxes (190) Total Deferred Debits Total Assets Liabilities and Other Credits 0211003 - Misc Paid in Capital Other Paid In Capital (208-211) 0215100 - Approp. Retained Earnings -0216000 - Unapprop Retained Earnings Current Year Net Income 0436100 - Approp Retained Earnings-Mklnd Retained Earnings (215, 215.1, 216) 0216100 - Unappr Undistr Subsid Earnings 0216150 - Equity IC AR Rollup December 2016 3,099,341,503 2,936,284 2,936,284 4,503,190 4,503,190 453,415 136,728 (3,810) (749,922) 480,955 13,241,959 11,570,243 3,836,590 46,042,009 513,692 1,805,782 12 3,967,880 153, 127 ,499 82,568,629 (2,482,044) 185,267,541 (9,401,000) 490,376, 158 490,376, 158 1,791,218,224 174,476,539 116,172 10,863 101,086,714 16,951,495 1 2,083,860,008 5,894,078,593 27,600,888,478 2,784,376,571 2,784,376,571 18,361,540 4,243,967 ,272 599,400,762 (1,321,772) 4,860,407 ,802 (286,334,903) 32,095,187 DUKE ENERGY PROGRESS, LLC Item No. 2 Docket No. E-2, Sub 1142 NCUC FORM E-1 Data Request For the test year ended December 31, 2016 Balance Sheet Account - Account Description 2161500 - IC AR Rollup Unappropriated Undistributed Subsidiary Earnings (216.1) 2191002 - OCI Rollup Accumulated Other Comprehensive Income (219) Total Proprietary Capital 0221003 - Curr Portion of LTD-Bonds 0221544 - PEC FMB 200M 5.70% 04/1/2035 0221546 - PEC FMB 325M 6.30% 04/1/2038 0221547 - PEC FMB 600M 5.30% 01/15/2019 0221549- PEC FMB 200M 6.125% 2033 0221566 - PEC FMB 100M 8 5/8% SER 9/2021 0221567 - DEP 500M 3.00% 9-15-21 0221568 - DEP 500M 2.8% 5-15-22 0221572- DEP 500M 4.10% 5-15-42 0221573-DEP 500M 4.10% 3-15-43 0221574 - DEP 48.485M Wake 2002 Refn 2013 0221075 - DEP FMB 400M 4.375% 3/30/2044 0221076 - DEP FMB 250M Floating 3/6/2017 0221044 - DEP FMB 200M Floating 11/20/17 0221043- DEP FMB 500M 4.15% 12/1/44 0221051 - DEP FMB 500M 3.25% 8/15/2025 0221052 - DEP FMB ?QOM 4.20% 8/15/2045 0221053 - 2016 Q3/Q4 Issuance Bonds (221) 0224550 - LIT DEPR Debt Other Long Term Debt (224) 0226543- PEC UNAMDIS 300M 5.15% 2015 0226544 - PEC UNAMDIS 200M 5.70% 2035 0226545 - PEC UNAMDIS 400M 5.25% 2015 0226546 - PEC UNAMDIS 325M 6.30% 2038 0226547 - PEC UNAMDIS 600M 5.30% 2019 0226549- PEC UNAMDIS 200M 6.125% 2033 0226566 - PEC UNAMDIS 100M 8 5/8% 2021 0226567- DEP 500M 3.00% 9-15-21 0226568- DEP 500M 2.80% 5-15-22 0226572- DEP UNAMDIS 500M 4.10% 5-15-42 0226573- DEP UNAMDIS 500M 4.10% 3-15-43 0226075 - DEP UNAMDIS 400M 4.375% 3/30/2044 0226043- DEP UNAMDIS 500M 4.15% 12/1/44 0226051 - DEP UNAMDIS 500M 3.25% 2025 0226052 - DEP UNAMDIS ?QOM 4.20% 2045 0226053 - 2016 Q3/Q4 issuance - Debt Dis Unamortized Discount on LT Debt (226) 0223306 - lntercompany Notes Payable LT Advances from Associated Companies (223) Total Long Term Debt 0227101 - LT Capital Lease Obligation Obligations Under Capital Leases (227) 0228250 - Inactive - Schm Worker'S Comp - Other 0228202 - Claim Reserve - ST Accumulated Provision for Injuries and Damages (228.2) 0228314 - Schm Ope Opeb FAS 106 0228315 - Schm Opeb (Fas106) December 2016 (32,095, 187) (286,334,903) (206,646) (206,646) 7 ,358,242,825 450,000,000 200,000,000 325,000,000 600,000,000 200,000,000 100,000,000 500,000,000 500,000,000 500,000,000 500,000,000 48,485,000 400,000,000 500,000,000 500,000,000 700,000,000 450,000,000 6,4 73,485,000 300,000,000 300,000,000 (314,863) (411,380) (112,561) (1,727,820) (58,911) (404,664) (604,899) (2,098,013) (3,209,252) (72,498) (1,589,632) (1,314,159) (3,385,382) (1,136,374) (16,440,408) 150,000,000 150,000,000 6,907 ,044,592 139,410,389 139,410,389 6,787,132 1,877,000 8,664,132 174,275,587 172,556 DUKE ENERGY PROGRESS, LLC Item No. 2 Docket No. E-2, Sub 1142 NCUC FORM E-1 Data Request For the test year ended December 31, 2016 Balance Sheet Account - Account Description 0228324 - Schm Ope Pos Emp FAS 112 0228325 - Schm Post Emp FAS 112 0228346 - Pension Liability- FAS 87 0228348 - Pension Liab - FAS 87(Cinergy) 0228313 - Coli Death Benefit Survivor 0228340 -Nonqualified Plans Liability 0253630 - Schm Exec Cash Bal Plan Accumulated Provision for Pensions and Benefits (228.3) 0228401 - Coal Mines Ins Liab 0228404 - Deferred Comp 0228405 - 2000 Class Deferred Compensat 0228440 - Reserve - MGP Sites FERG 228 0228480 - Ace Prov Insurance-Environ Accumulated Miscellaneous Operating Provisions (228.4) 0244006 - Derivative lnstr-Regulatory-LT 0244008 - Deriv Instr Liab-Broad River LT 0244009 - Deriv Instr Liability-Broad - RI LT Portion of Derivative Instrument Liabilities 0230999 - ARO Liability 0230315 - ARO Liability - Coal Ash Asset Retirement Obligations (230) 0245002 - 3rd Party Derivative Liability Noncurren LT Portion of Derivative Instrument Liabilities - Hedges Total Other NonCurrent Liabilities 0232016 -AP PS8.9 Vendors Payable 0232061 - Checks not presented - reclass 0232120 - Vouchers Payable - Special 0232125 - NRC Inspection Fee Pay 0232151 - Pp Accounts Payable - Stores 0232170 - Accounts Payable - Coal 0232175 - Limestone and Freight Payable 0232180 - Accounts Payable - Oil Stocks 0232190 - Coal Freight Payable 0232892 - A/P Miscellaneous 0232331 -A/P - ENERGY NEIGHBOR FUND 0232460 - Bulk Power Marketing Payable 0232480 - Co - Generation 0232410-Transmission Payables 0232109 - A/P BPM - Actual Power Accounts Payable (232) 0232996 - Capital - Accruals 0232039 - Payable 401 K Incentive Match 0232181 - Natural Gas Payable 0232002 - A/P - Misc - Gen - Acctg 0232176 - Reagent Payable 0232177 - Generic By Products Payable 0232270 - Passport Unvouchered Liability 0232000 - A/P Vendors Payable 0232155 - Accounts Payable - Stores CAS 0232178 - Accrued Settlements Payable Accounts Payable (232) 0233150 - IC Moneypool - ST Notes Pay Notes Payable to Associated Companies (233) December 2016 9,814, 124 18,726 16,810,000 23,300,960 7,608,529 232,000,482 2,370,296 11,358,597 5,950,200 2,306,229 21,985,322 5,574,632 5,574,632 2,487,921,803 2,019,634,697 4,507 ,556,500 156,050 156,050 4,915,347,507 87,146,157 102,021,859 2, 153, 128 29,647,887 9,601,869 655,441 946,992 1,399,306 26,846 18,407,816 (51,014) 8,170,582 26,527,383 151, 127,493 3,863,199 12,289,972 133,496,260 480,712 147,048 14,762,431 26,105 817,609 15,051,227 592, 188,925 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC FORM E-1 Data Request For the test year ended December 31, 2016 Balance Sheet Account - Account Description 0232232 - A/P Affiliates 0234000 - IC Moneypool - ST Interest Pay 0234010 - lntercompany Ap 0234250 - IC Netting - Accts Payable 0234104 - IC Accounts Payable Accounts Payable to Associated Companies (234) 0235140 - Special Customer Deposits 0235000 - Gust Dep NC-CIM 0235001 - Gust Dep SC-CIM 0235152 - Solar Interconnect Deposits (I) Customer Deposits (235) 0236000 - NC Prop Tax - Electric 0236020 - FAS 5 Non-Income Tax Reserves 0236050 - NC Municipal License - Elec 0236150 - St/Local Unemployment Tax Liab 0236360 - SC Prop Tax - Electric 0236470 - Franchise Tax Accrual 0236520 - S. C. Pub Ser Comm - Electric 0236700 - Employer FICA Tax Liab 0236750 - Federal Unemployment Tax Liab 0236906 - Use Tax Payable 0236926 - LT tax reclass Fed er 0236927 - LT tax reclass state er 0236940 - Current Tax Reclass State Cr 0236942 - State Inc Tax Payable - Prior Yrs LT 0236980 - Current Tax Reclass Fed Cr 0236981 - Fed Inc Tax Payable - Prev Yr 0236990 - Fed Inc Tax Payable - Current 0236983 - Fed Inc Payable-Prior Yrs 0236965 - Accrued SIT - Prior Year 0236993 - LT Liability Fed - UTP 0236001 - State It Payable Other 0236986 - LT Liability Fed - KTRA 0236988 - LT Liability ST UTP PGN 0236375 - SC CORP LIC UNBILL ACCRUAL Taxes Accrued (236) 0230690 - S.C. Mun. License - Elect. Other Accounts Payable Consolidated Taxes Accrued 0237038 - LT Interest Accrued 0237039 - Cur Int Accrued - Tax 0237110 - Bonds Interest Payable 0237220 - Int Accrued on NC Gust Deposit 0237240 - Int Accrued on SC Gust Dep 0237510 - Bonds Interest Payable Interest Accrued (237) 0241110 - State Income Tax Wh - Employee 0241150 - Federal Income Tax Wh - Employee 0241160 - FICA Withheld - Employee 0241310 - SC State Sales Tx on Elc Enrgy 0241320 - Sales Tax on Elc Enrgy 0241335 - Local Taxes Withheld Tax Collections Payable (241) Item No. 2 December 2016 (169,934) 8,219 50,956,689 169,424,504 220,219,478 121,384,365 19,664,440 141,048,805 428,411 (152,338) 7,661 97 (108,417) 1,044 6,654,754 3,019 1,253, 155 28,552 (46,442) 87,955,270 (2,984,910) 1,021,133 5,308,973 16,255 1,370,704 49,875 100,806, 795 7,019,625 7,019,625 107,826,421 1,227, 153 388,540 28,460,901 560,458 72,291,813 102,928,865 465,198 (9,756) (2,366) 883,180 3,769,824 1,359 5,107,439 DUKE ENERGY PROGRESS, LLC Item No. 2 Docket No. E-2, Sub 1142 NCUC FORM E-1 Data Request For the test year ended December 31, 2016 Balance Sheet Account - Account Description 0242215 - Payroll Severance Reserves 0242310 - Green Power Payable 0242440 - Cash Coll and Contrib To Trustee 0242460 - Prov For Incentive Ben Prog 0242461 - Prior Year Incentive Accrual 0242490 - Vacation Carryover 0242540 - Escheaments Payable 0242650 - Accrued Payable - Other 0242216 - Payrll ST Retention/Spcl Rsrvs 0242300 - Palmetto Clean Energy Payable 0242997 - Misc Liab - FAS 87 NQ 0242330 - Carbon Offset Program - NC 0242033 - Wages Payable - Accrual 0242897 - NC Pension Liability- FAS 87 0242898 - OPEB Current Liability 0242899 - FAS 112 Current Liability 0232004 - Vision Deduction 0242395 - CUR&ACCR LIAB MED/DTL INS ACT 0242396 - CURR&ACCR LIAS-WORKERS COMP 0242398 - CURR&ACCR LIAB MISC 0232005 - Long Term Disability Deduction 0232045 - Supplemental Life Deductions 0232048 - Supplemental AD&D Deduction 0242152 - Solar Interconnect Deposits 0230105 - ARO Liability - Current Other Current Accrued Liability 0242110 - Contract Retentions Contruction Contra Ret Miscellaneous Current and Accrued Liabilities (242) 0243105 - Current Portion of Cap Lease Obligation Obligations Under Capital Leases - Current (243) Long-Term Portion of Derivative Instrument Liablities Cale Derivative Instrument Liabilities (244) (Less) Long Term Portion of Derivative Instrument Liabilities Long-Term Portion of Derivative Instrument Liabilities-Hedges Cale 0245001 - 3rd Party Derivative Liability Current Derivative Instrument Liabilities - Hedges (245) (Less) Long-Term Portion of Derivative Instrument Liabilities-Hedges Total Current and Accrued Liabilities 0252001 - Gust Adv For Construction 0252400 - Customer Advances-ST Customer Advances for Construction (252) 0255000 - Accum Def Inv Tax Credits Accumulated Deferred Investment Tax Credits (255) 0253053 - OTH DEF Credit - Smart Grid 0253500 - Net Proceeds on Property Sales 0253890 - Schm Tax and S/L For Surplus Mat'Ls 0253910 - Pole Attach - Advance Billing 2531006 - Defr Cr - AIR A/P Elim Diff 2531008 - Defr Cr - Other Bal Sheet Elim Diff 0253690 - Pension Deferred Credits 0253035 - Misc Def Cr - Genl Acctg 0253008 - Pole Attach - Deferred Revenue December 2016 5,807,337 15,523 69,346,083 49,963,315 143,828 1,131,021 654,762 180 2,241,933 744 11,414,363 328,007 16,476,549 1,461,673 25,325 115,185 19,141,333 62,552 257,837 41,688 18,023,550 189,425, 700 386,078,490 550,930 550,930 386,629,419 2,507,196 2,507,196 5,574,632 5,574,632 (5,574,632) 156,050 156,050 (156,050) 1,456,434,689 7,072,228 15,955,569 23,027,797 146,399,648 146,399,648 1,534, 126 29,568 21,776 (3,634,081) 3,634,081 3,490,246 3,952,672 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC FORM E-1 Data Request For the test year ended December 31, 2016 Balance Sheet Account - Account Description 0253082 - OTH DEFER CR MISCELLANEOUS 0253086 -ACCRUED INDEMNIFICATIONS - SFAS 5 0253600 - Def NC Tax Rate Change - TAX 0253070 - Reserves - Mgp Sites FERG 228 Misc Deferred Credit (253) Other Deferred Credits (253) 0254200 - Epa Auction Proceeds EPA AUCTION PROCEEDS (254) 0254250 - NC REC Liability - Retail 0254251 - NC REC Liability - Whse 0254689 - Reg Liability - NQ 0254690 - OPEB regulatory liability 0254013 - Reg Liab NC Deferred Fuel 0254914 - NOT - QUAL - UNREAL GAINS 0254915 - NOT - NONQUAL- UNREAL GAINS 0254403 - SFAS 143 Asbestos-Reg Liab FTG 0254017 - Sale of Land Harris Deferral 0254019 - Harris Land Gain Amort- Current 0254021 - Nuclear Fuel Last Core Reserv 0254022 - M and S Inventory Reserve PEC RC 0254319 - REG LIAB - DOE REFUND AMORT NC 0254700 - DOE Settlement Def NC Cur 0254410 - ST S02 EA Proceeds 0254025 - Reg Liab - NCDT Overfund 0254800 - Reg Liability - MTM Fuel - LT 0254030 - NC Long-Term Liab Defer Fuel 0254035 - SC Long-Term Liab Defer Fuel 0254980 - Open Int Rate Swap Cur Rg Liab 0254106 - Ratable Fleet Spare Reg Liab Misc Regulatory Liab (254) 0254100 - Regulatory Liablility- Inc Tax 0254150 - Reg Liab - NC Tax Rate Change Regulatory Liability Tax (254) Other Regulatory Liabilities (254) 0282100 - Adit: PpandE: Federal Taxes 0282101 - Adit: PpandE: State Taxes Accumulated Deferred Income Taxes 0th Property (282) 0283100 -Adit: Other: Federal Taxes 0283101 -Adit: Other: State Taxes Accum Deferred Income Tax Other (283) Total Deferred Credits Total Liabilities and Other Credit Note(s): Detail amounts may not add to totals shown due to rounding. Item No. 2 December 2016 22,125,000 24,737,560 412,645 54,769,467 56,303,593 1, 177,746 1, 177,746 86,271,337 357,607 83, 101 63,848,331 673, 199,812 7,897,932 15,264,104 641,434 1,539,442 14,866,789 14,051,015 1,699,385 2,549,076 2,500,000 46, 196, 120 723,557 2,867,186 934,556,227 (142,687 ,520) 150,465,625 (293, 153, 145) 1,228,887' 118 3,607 ,488,881 295,391,819 3,902,880, 700 1,375,657 ,819 128,640,332 1,504,298, 151 6,861,797,007 27,600,888,478 NCUC Form E-1 DUKE ENERGY PROGRESS, LLC Item No. 2 Docket No. E-2, Sub 1142 NCUC FORM E-1 Data Request For the test year ended December 31, 2016 Income Statement Account - Account Description 0440000 - Residential 0440990 - Residential Unbilled Rev 0442100 - General Service 0442190 - General Service Unbilled Rev 0442200 - Industrial Service 0442290 - Industrial Svc Unbilled Rev 0444000 - Public St and Highway Lighting 0444990 - Public Street/Highway Unbilled 0447150 - Sales For Resale - Outside 0449100 - Provisions For Rate Refunds 0445000 - Other Sales To Public Auth 0445090 - OPA Unbilled 0447016 - l/C Joint Disp - Revenue Electric Revenue 0450100 - Late Pmt and Forf Disc 0450200 - Charge on Returned Checks 0451100 - Misc Service Revenue 0454100 - Extra - Facilities 0454200 - Pole and Line Attachments 0454300 - Tower Lease Revenues 0454400 - Other Electric Rents 0454500 - Leased Facilities Fee - Catawba 0454510 - Rtn & Dep-Joint-Owner Gen Pit 0456100 - Profit Or Loss on Sale of M&S 0456102 - Distribution Charge - Network 0456103 - Metering - Network 0456104 - Transmission Charge Network 0456105 - Sched, Sys Cntl, Disp-Network 0456106 - Reactive PurNolt Cntl Svc 0456110 - Transmission Charge Ptp 0456300 - Comp For Serv 0th JointOwner 0456610 - Other Electric Revenues 0456630 - Gross Up - Contr in Aid of Const 0456949 - Other Revenue Affiliate 0454105 - IC Other Elec Rents 0456111 - Other Transmission Revenues 0456001 - Other Variable Revenues-Reg 0456191 - NC Unbilled Coal Inv Rev 0454004 - Rent - Joint Use 0456002 - Demand Profile Plot Change 0456004 - Magnetic Tape Pulse Data 0456005 - ELEC REV-COGEN/SMALL PWR PRO 0456117 -1/C WHEELING-TRANSMISSION-DUKE 0456118 -1/C Revenue Sharing - Duke 0456119 -1/C Wheeling - Prod ANC SER- Duke 0456050 - Transmission Study Revenue Other Revenue Total Electric Revenue Operating Revenues (400) 0501110 - Coal Consumed - Fossil Steam 0501310 - Oil Consumed - Fossil Steam 0509030 - S02 Emission Expense 12 Months Ending December 31.2016 1,897,586, 185 19,823,165 1,238, 132,794 1,898,718 637,716,429 (104,572) 20,405,260 (60,064) 1,077,790,391 699,832 84,954,606 42,041 156,407 ,823 5, 135,292,609 7,525,102 227,634 7,790,254 18,005,494 11,528,239 603,527 5,546,948 1,359,036 (237,259) 2 0 (2,515,907) 55,927,465 1,487,672 3,079,432 4,299,987 0 1,113,472 5,906,547 2,692,558 188,706 1,591,413 (126,705) (196,040) 59,613 233,200 152 693,106 104,979 3,565,498 9,289 0 130,463,413 5,265,756,021 5,265,756,021 394,686,440 7,291,750 63,963 NCUC Form E-1 DUKE ENERGY PROGRESS, LLC Item No. 2 Docket No. E-2, Sub 1142 NCUC FORM E-1 Data Request For the test year ended December 31, 2016 Income Statement Account - Account Description 0557450 - Commissions/Brokerage Expense 0557451 - EA & Coal Broker Fees 0509212- Annual NOx Emission Expense 0501016 - IC Joint Dsp - Fuel Synergies Steam Fossil Production Fuel (500-509) 0547200 - Oil 0547000 - Fuel Expense 0547127 - Gas Desk Savings 0547123 - Gas Capacity - lntercompany Combustion Production Fuel 0518100 - Burnup of Owned Fuel 0518610 - Canister Expense - Oconee Robins 0518611 - Canister Expense - Mcguire Bruns 0518620 - Canister Design Expense 0518700 - 24 Month Fuel Cycle 0518500 - Nuclear Fuel Synergy Savings Nuclear Production Fuel (517-525) Fuel Used in Electric Generation 0555130 - Purchased Power - Co Generation 0555200 - Interchange Power 0555750 - Purchases - Generation Imbalance 0557980 - Retail Deferred Fuel Expenses 0555125 - Purchased Power- Renewable Other Power Supply Expense 0555202 - Purch Power-Fuel Clause 0555016 - l/C Joint Disp - Pur Pwr Purchased Power (555) 0920000 - A and G Salaries 0921100 - Employee Expenses 0921200 - Office Expenses 0921300 - Telephone and Telegraph Exp 0921400 - Computer Services Expenses 0921540 - Computer Rent (Go Only) 0921600 - Other 0921980 - Office Supplies and Expenses 0922000 - Admin Exp Transfer 0922100 - Admin Exp Transf - Construction 0923000 - Outside Services Employed 0923980 - Outside Services Employee and 0924000 - Property Insurance 0924050 - lntercompany Property Insurance Exp 0924980 - Property Insurance For Corp. 0925200 - Injuries and Damages - Other 0925300 - Environmental lnj and Damages 0925980 - Injuries and Damages For Corp. 0926000 - Empl Pensions and Benefits 0926420 - Employees' Tuition Refund 0926430 - Employees'Recreation Expense 0926490 - OTher Employee Benefits 0926600 - Employee Benefits - Transferred 0928000 - Regulatory Expenses (Go) 0929000 - Duplicate Chrgs - Enrgy To Exp 12 Months Ending December 31.2016 12,600 7,795 242,904 3,294,460 405,599,912 8,953,836 676,295,933 (129,570) (5,733,627) 679,386,571 196,415,200 80,005 1,303,467 250,740 764,543 (3,817) 198,810, 138 1,283,796,621 41,200,052 206,530,267 130,271 60,755,982 199,389,479 508,006,052 0 38,331,512 546,337,564 116,700,850 3,877,042 8,411,662 1,758 4,535,847 3,089,763 (5,890) 23,647,618 78,797 47 44,223,480 1,905,717 619,918 7,806,000 9,827,790 639,585 4,280,061 289,884 75,098,778 0 8,536 0 12,219,802 7,495,555 16,884 NCUC Form E-1 DUKE ENERGY PROGRESS, LLC Item No. 2 Docket No. E-2, Sub 1142 NCUC FORM E-1 Data Request For the test year ended December 31, 2016 Income Statement Account - Account Description 0930200 - Misc General Expenses 0930210 - Industry Association Dues 0930220 - Exp of Servicing Securities 0930230 - Dues To Various Organizations 0930240 - Director'S Expenses 0930250 - Buy\Sell Transf Employee Homes 0930600 - Leased Circuit Charges - Other 0930700 - Research and Development 0930800 - R and D - Alternative Energy 0930940 - General Expenses 0931001 - Rents - AandG 0931008 -A and G Rents IC 1199990 - Shared Services/Im Clearing 0107888 - CWIP - BU Bal Sht- Svc Co Exp 0921110 - Relocation Expenses 0921900 - Office Supply And Exp-Partner 0925000 - Injuries and Damages 0925051 - lntercompany Gen Liab Expense 0930150 - Miscellaneous Advertising Exp 0929500 - Admin Exp Transf 0920100 - Salaries & Wages - Proj Supt - NCRC Rec 0921800 - Off Supplies & Exp - Proj Supt- NCRC Rec 0923100 - Outside Svcs Cont -Proj Supt - NCRC Rec 0921101 - Employee Exp - NC Admin & General Operation Expenses (920-931) 0546000 - Suprvsn and Enginring - Ct Oper 054 7150 - Natural Gas Handling - Ct 0547300 - Fuel Handling and Testing - Ct 0548100 - Generation Expenses - Other Ct 0548020 - Ammonia - Qualifying 0548200 - Prime Movers - Generators - Ct 0549000 - Misc - Power Generation Expenses Combustion Production Op Expense (546-550.1) 0901000 - Supervision - Cust Accts 0902000 - Meter Reading Expense 0903000 - Cust Records and Collection Exp 0903100 - Cust Contracts and Orders - Local 0903200 - Cust Billing and Acct 0903300 - Cust Collecting - Local 0903400 - Cust Receiv and Collect Exp - Edp 0903750 - Common - Operating - Cust Accts 0904000 - Uncollectible Accounts 0905000 - Misc Customer Accts Expenses 0904001 - Bad Debt Expense Customer Account Expenses (901-905) 0908150 - Commer/lndust Assistance Exp 0908160 - Cust Assist Exp - General 0909650 - Misc Advertising Expenses 0910000 - Misc Cust Serv/lnform Exp 0910100 - Exp - Rs Reg Prod/Svces - Cstaccts 0908000 - Cust Asst Exp-Conservation Programs - Rec Customer Service and Information (907-910) 12 Months Ending December 31.2016 (37,092,254) 789,764 136,278 278,654 976,847 3,759,745 1,147 118,621 1,329,509 163,356 23,467,695 10,471,391 99 1 (12,897) 690 7,480,616 3,658,000 2,196,396 (3,226,558) 12 90 0 1,727 339,268,414 4,459,099 576,304 27,344 872,035 231,516 1,994,521 13,150,559 21,311,379 281,077 4,468,044 11,568,545 12,241,651 6,390, 111 5,004,055 302,015 8,574 6,669,543 663,023 302,907 47,899,543 3,966 1,527 81, 137 363,336 4,030,014 339 4,480,319 NCUC Form E-1 DUKE ENERGY PROGRESS, LLC Item No. 2 Docket No. E-2, Sub 1142 NCUC FORM E-1 Data Request For the test year ended December 31, 2016 Income Statement Account - Account Description 0580000 - Supervsn and Engring - Dist Oper 0582100 - Station Expenses - Other - Dist 0582200 - Relays and Meters - Dist 0583100 - Overhead Line Exps - Other Dist 0583200 - Transf Set Rem Reset Test - Dist 0584000 - Underground Line Expenses - Dist 0585000 - St Lghtng and Sgnl Systm - Dist 0586000 - Meter Expenses - Dist 0587000 - Cust Install Exp - Other Dist 0588100 - Misc Distribution Exp - Other 0589000 - Rents - Dist Oper 0581004 - Load Dispatch-Dist of Elec Distribution General Expense Other (580-589) 0535000 - Supervsn and Engrng - Hydro Oper 0537100 - Hydraulic Expenses 0537400 - Recreation Expenses - Hydro 0538100 - Electric Expenses - Other - Hydro 0539000 - Misc Hydraulic Expenses 0540000 - Rents - Hydro Oper 0536000 - Water For Power Hydraulic Production Operating 0517000 - Supervsn and Engnring - Nuc Oper 0518530 - Diesel Unit Oil Cons - Nuc Oper 0519000 - Coolants and Water - Nuc Oper 0520000 - Steam Expenses - Nuc Oper 0523000 - Electric Expenses 0524000 - Misc Expenses - Nuc Oper 0517001 - Sup and Engineer - NC 0524001 - Misc Exp Nuc - NC 0524002 - Misc Exp Nuc - SC Nuclear Production Operating Expense (517-525) 0557000 - Other Expenses - Oper 0556000 - System Cnts & Load Dispatching Other Expenses (557) 0912000 - Demonstrating and Selling Exp 0913001 - Advertising Expense 0916000 - Miscellaneous Sales Expense Sales Expense (911-917) 0500000 - Suprvsn and Engrg - Steam Oper 0501150 - Coal Handling 0501160 - Coal Sampling and Testing 0501180 - Sale of Fly Ash - Revenues 0501190 - Sale of Fly Ash - Expenses 0502040 - Cost of Lime 0502100 - Fossil Steam Exp - Other 0505000 - Electric Expenses - Steam Oper 0506000 - Misc Fossil Power Expenses 0502010 -Ammonia Expense 0502020 - Ammonia - Qualifying 0504000 - Steam Transferred - Credit 0502030 - Urea - Qualifying 0502070 - Gypsum - Qualifying 12 Months Ending December 31.2016 717,977 1,231,257 110,267 56,904 134, 171 4,712,175 10,276 7,511,340 2,013,972 25,567,942 2,533,934 5,214,815 49,815,031 1,812, 177 137,421 (361, 146) 91,095 789,899 0 62,500 2,531,947 44,785,075 501,628 20,399,547 50,372,305 6,133,709 170,973,633 0 610 0 293, 166,506 84,847,772 1,629,675 86,477,448 5,976,581 314,113 16,591 6,307,285 8,817,407 1, 188,799 8,073 262,345 3,142,814 10,580,495 5,674,962 84,862 7,145,638 0 3,014,508 0 1,028,737 (896, 110) NCUC Form E-1 DUKE ENERGY PROGRESS, LLC Item No. 2 Docket No. E-2, Sub 1142 NCUC FORM E-1 Data Request For the test year ended December 31, 2016 Income Statement Account - Account Description 0502080 - Mag Hydroxide Qualifying Reag 0502160 - Reagent Synergy Savings 0502090 - Calcium Carbonate 0500100 - Fossil Oper Superv&Engineer-Recoverable 0506300 - Misc Fossil Power Expenses - Recoverable 0502161 - By-Product Synergy Savings 0502082 - Re-emission Chem Exp - Reagent 0501181 - Contra Fuel Exp Pond Ash - SC 0501182 - Contra Fuel Exp Pond Ash - WIS Steam Production Operating (500-509) 0560000 - Supervsn and Engrng - Trans Oper 0561100 - Load Dispatch - Reliability 0561200 - Load Dispatch - MnitorandOprtrnsys 0561300 - Load Dispatch - TranssvcandSch 0561500 - Reliability Planning and Stdsdev 0561600 - Trans Svc Studios 0561700 - Generation Interconnect Studies 0562000 - Station Expenses 0563000 - Overhead Line Expenses - Trans 0565000 - Transm of Elec By Others 0565010 - Trans of Elect- Purchase 0566000 - Misc Trans Exp - Other 0566100 - Misc Trans - Trans Lines Related 0567000 - Rents - Trans Oper Transmission Operating Expense (560-567) Other Operation 0823000 - Storage - Gas Losses 0870000 - Distribution Sys Ops - Supv/Eng 0880000 - Gas Distribution - Other Expense Gas Operating Expenses Operation Expenses (401) 0403500 - Depr of General Plant 0403100 - Depr of Steam Prod Plant 0403200 - Depr of Hydro Prod Plant 0403300 - Depr of Transm Plant 0403400 - Depr of Distribution Plant 0403600 - Depr of Comb Turb Plant 0403700 - Depr of Nuc Prod Plant 0403002 - Depr - Expense 0403203 - Depreciation - Whlsale Rate Diff 0403401 - Depreciation - SC Rate Diff 0403105 - Amort of Unrecovered Plant 0403202 - DEPRECIAT-WHLSALE RATE DIFF PA 0403040 - HARRIS DSLW-SC IND 0403041 - HARRIS DSLW-WH IND 0403042 - DEPRECIA-CONTRA AFUDC SC PLANT 0403043 - DEPRECIATION-WHOLESALE PLANT 0403044 - DEPRECIA-CONTRA AFUDC NC PLANT 0403045 - DEPRECl-CONTRA AFUDC POLL CONT 0403046 - HARRIS DSLW- NC DIR 0403047 - HARRIS DSLW- PA DIR 0403048 - HARRIS DSLW-WH DIR 12 Months Ending December 31.2016 2,433,109 (360,676) 1,306,928 6,510 0 211,991 117,168 38,886 118,259 43,924,703 (4,530) 2,436,540 2,191,336 940,162 292,406 (94,892) (16,221) 1,465,991 844,247 761 0 6,885,154 30,914 95,951 15,067,819 910,250,394 0 0 0 0 2, 740,384,579 21,849,977 99,587,793 3,263,035 40,950,783 204, 155,475 75,200,312 174,902,178 55,655 418,979 1,283, 116 1, 144,468 191, 197 (631,364) (826,994) (528,463) (536,992) (4,981,825) (116,978) (930,873) (297,678) (206,421) NCUC Form E-1 DUKE ENERGY PROGRESS, LLC Item No. 2 Docket No. E-2, Sub 1142 NCUC FORM E-1 Data Request For the test year ended December 31, 2016 Income Statement Account - Account Description 0403049 - HARRIS DSLW- NC IND 0403311 - Depr Transm Pit - SC 0403411 - Depr Distribn - SC Electric Depreciation 0403800 - Decommissioning Exp Decommissioning Expense 0403611 - Depr Cmb Turbine - SC 0403710 - Depr Nuc Product - NC 0403711 - Depr Nuc Product - SC 0403602 - Ratable Fleet Spare Amort Depreciation Expenses (403) 0404100 - Amor of Limited Term Elec Pit 0404200 - Amort of Elec Pit - Software Amort of LT Term Elec Pit Amortization and Depletion of Utility Plant (404-405) 0407002 - Brunswick Design Basis 0407003 - Robinson Design Basis 0407004 - Mayo2 Aban Loss and AFC Dbt Whle 0407382 - Retired Plant Amort - Whlsle 0407381 - Retired Plant Amort - Retail 0407101 - Harris COLA Amort - Wholesale Amortization of Prop Loss, Unrecov Plant and Reg Strudy Cost (407) 0407350 - REPS Rider NC Retail 0407351 - REPS Rider NC Whse 0407352 - REPS Rider NC Retail-Cert 0407353 - REPS Rider NC Whse-Cert 0407334 - Reg Debit - DSM/EE NC 0 and M 0407335 - Reg Debit - DSM/EE SC 0 and M 0407329 - Wayne NC Regulatory Debit 0407370 - S02 EA Amortization 0407380 - Reg Debit - Retired Plant NC 0407342 - Nuclear Fuel - Last Core Amort 0407375 - M&S Inv LOL Reserve Amort 0407358 - Reg Debit - DSM/EE NC 0407359 - Reg Debit - DSM/EE SC 0407392 - Amort Debt Ret-NC 0407385 - Deferred NDTF Overfund Regulatory Debits (407.3) 0411832 - NOx Sales Proceeds 0411875- Annual NOx Proceeds 0411802 - S02 Gain on Disp of Allowances Gains from Disposition of Allowances (411.8) 0406505 - Amort Exp -Acq Purch Adj Amortization of Utility Plant Acq. Adj. (406) 0411051 -Accretion Expense -ARO Ash Pond Accretion Expense (411.10) 0407430 - NC Nuc Ins Reserve Amort 0407414 - DSM EE Capital Deferral 0407416 - Reg Credit DSM EE Other 0407418 - Pollution Ctrl SC Depree Defer 0407431 - Pollution Control SC 0 and M Defer 0407432 - Reg Credit- DSM/EE NC 0 and M 12 Months Ending December 31.2016 (3,729,405) (146,973) (9,027) 610,059,975 12,841,497 12,841,497 (2,825, 129) (12,266,004) (2,269,200) (1,053,971) 604,487' 167 0 31,071,436 31,071,436 31,071,436 547,327 173,971 70,766 2,485,985 27,048,203 121,632 30,447,884 2,327,439 10,562 31,116,580 144,334 54,131,835 12,727,049 4,068,168 (2,500,000) 6,948,155 4,148,872 3,921,213 35,255,350 6,238,823 1,837,392 4,651,455 165,027,228 94,340 270,049 56 (364,445) 12,758,733 12,758,733 0 0 0 (12,783,078) (27,882,680) (2,610,226) (220,539) (78,575,793) NCUC Form E-1 DUKE ENERGY PROGRESS, LLC Item No. 2 Docket No. E-2, Sub 1142 NCUC FORM E-1 Data Request For the test year ended December 31, 2016 Income Statement Account - Account Description 0407433 - Reg Credit- DSM/EE SC 0 and M Def 0407437- Harris Gains NC 0407452 - NCEMPA NC Deferral & Amortiz 0407453 - NCEMPA SC Deferral & Amortiz 0407700 - SC DERP Amortization 0407150 - NCEMPA NC Debt Return 0407160 - NCEMPA SC Debt &Equity Return 0407454 - NCEMPA NC deferrals/recovery Regulatory Credits (407.4) Depreciation and Amortization 0510000 - Suprvsn and Engrng - Steam Maint 0511000 - Maint of Structures - Steam 0512100 - Maint of Boiler Plant - Other 0513100 - Maint of Electric Plant - Other 0514000 - Maintenance - Misc Steam Plant 0510100 - Suprvsn and Engrng-Steam Maint - Rec 0511200 - Maint Of Structures-Steam - Recoverable 0512300 - Maint Of Boiler Plant-Other - Recoverable 0514300 - Maintenance - Misc Steam Plant STEAM PRODUCTION MAINTENANCE (510-515) 0541000 - Suprvsn and Engrng - Hydro Maint 0542000 - Maint of Structures - Hydro 0543000 - Maint - Reservoir Dam and Waterway 0544000 - Maint of Electric Plant - Hydro 0545100 - Maint - Misc Hydraulic Plant 0545400 - Recreation Facilities - Hydro HYDRO PRODUCTION MAINTENANCE (541-545.1) 0568000 - Suprvsn and Engrng - Trans Maint 0569000 - Maint of Structures - Trans 0569100 - Maint of Computer Hardware 0569200 - Maint of Computer Software 0569300 - Maint of Communication Equipment 0570100 - Maint Stat Equip - Other_Trans 0570200 - Main - Cir Brkrs Trnsf Mtrs - Trans 0571000 - Maint of Overhead Lines - Trans 0573000 - Maint of Misc Transm Plant 0572000 - Maintenanace of Underground Lines TRANSMISSION MAINTENANCE (568-574) 0590000 - Supervsn and Engrng - Dist Maint 0592100 - Maint Station Equip - Other - Dist 0592200 - Cir Brkrs Trnsf Mters Rely - Dist 0593000 - Maint Overhd Lines - Other - Dist 0593100 - Right - Of - Way Maintenance - Dist 0594000 - Maint - Underground Lines - Dist 0595100 - Maint Lines Transfrs - Other - Dist 0595200 - Cir Brkrs Transf Capcitrs - Dist 0596000 - Maint - Streetlightng/Signl - Dist 0597000 - Maintenance of Meters - Dist 0598100 - Main Misc Dist Pit - Other - Dist 0591000 - Maintenance of Structures - Dist DISTRIBUTION GENERAL EXPENSE MAINTENANCE (590-598) 0551000 - Suprvsn and Enginring - Ct Maint 12 Months Ending December 31.2016 (13,886,585) (1,539,442) 7,236,000 (736,000) 15,907 0 (11, 160,000) (19,203,424) (161,345,859) 682,082, 145 6,655,849 9,413,362 43,515,606 9,787,139 6,142,474 188, 199 342 0 10,378 75,713,348 218,008 331,428 1,439,806 456,821 2,217,810 17,093 4,680,967 3,502 280,089 27,684 2,735,383 10, 142 231,404 5,368,386 23,519,116 (759,297) (1,192) 31,415,217 8,189 1,718,022 2,359,027 96,085,107 259,549 4,822,769 772,683 25,978 6,812,010 1,801,325 1,426,022 1,296 116,091,977 4,283,381 NCUC Form E-1 DUKE ENERGY PROGRESS, LLC Item No. 2 Docket No. E-2, Sub 1142 NCUC FORM E-1 Data Request For the test year ended December 31, 2016 Income Statement Account - Account Description 0552000 - Maintenance of Structures - Ct 0553000 - Maint - Gentg and Elect Equip - Ct 0554000 - Misc Power Generation Plant - Ct Combustion Production Maintenance (551-554.1) 0528000 - Maint Suprvsn and Enginrng - Nuc 0529000 - Maintenance of Structures - Nuc 0530000 - Maint of Reactor Pit Equip - Nuc 0531100 - Maint Electric Pit - Other - Nuc 0532100 - Maint Misc Nuclear Pit - Other 0530002 - Main Reactor Pit Eq Nuc - SC 0532101 - Main Misc Nuc Pit - NC 0532102 - Main Misc Nuc Pit - SC NUCLEAR PRODUCTION MAINTENANCE (528-532) 0935100 - Maint General Plant-Elec 0935200 - Cust lnfor and Computer Control ADMIN GENERAL EXPENSE MAINT (935) 0554220 - Solar: Maint Misc Gen Pit Solar Maintenance Expense Maintenance Expenses (402) 0408000 - NC Property Tax - Electric 0408050 - Municipal License-Electric 0408100 - Franchise Tax - Electric 0408150 - State Unemployment Tax 0408151 - Federal Unemployment Tax 0408152 - Employer FICA Tax 0408360 - SC Property Tax - Electric 0408460 - SC Kwh Power Gen Tax - Electric 0408470 - Franchise Tax 0408800 - Federal Highway Use Tax - Elec 0408960 - Allocated Payroll Taxes 0408120 - Franchise Tax - Non Electric 0408121 - Taxes Property - Operating 0408205 - Highway Use Tax 0408851 - Sales and Use Tax Exp 0408125 - Deferred Property Taxes-WH Taxes Other Than Income Taxes (408.1) Total Operating Expense Before Income Taxes 0409190 - Federal Income Tax - Electric CY 0409192 - UTP Tax Expense: Fed Utility Federal Income Tax - Electric CY 0409191 - Federal Income Tax - Electric PY 0409194 - Current FIT Elec-PY Audit 0409195 - UTP Tax Expense: Fed Util-PY Federal Income Tax - Electric PY Income Taxes Federal (409.1) 0409102 - SIT Exp - Utility 0409104 - Current State Income Tax - PY 0409197- Current State Inc Tax-Util Income Tax - Other (409.1) 0410100 - Dfit: Utility: Current Year 0410102 - Dsit: Utility: Current Year 0410105 - Dfit: Utility: Prior Year 12 Months Ending December 31.2016 7,770,653 30,672,706 15,416,253 58,142,992 72,169,715 25,715,675 67,424,165 48,809,983 61,211,202 956 80 0 275,331,776 1,387,306 10,232 1,397,539 37,848 37,848 562,811,662 59,353,510 365,611 0 434,154 870,633 40,618,816 33,580,762 2,169,800 16,102,947 44,052 615,596 1,809 84,253 27,314 (510,999) 0 153, 758,259 4, 139,036,645 (13,162,165) 0 (13,162,165) (52,643,981) 13,197,713 (973,684) (40,419,952) (53,582, 117) (1,453, 118) (23,898,476) 1,504,475 (23,847,119) 1,020,529,742 67,636,840 118,996,590 NCUC Form E-1 DUKE ENERGY PROGRESS, LLC Item No. 2 Docket No. E-2, Sub 1142 NCUC FORM E-1 Data Request For the test year ended December 31, 2016 Income Statement Account - Account Description 0410106 - Dsit: Utility: Prior Year 0410109 - DFIT Utility - prior year 0410110 - Prov/Defd Inc Tax- Electric CY Provision for Deferred Income Taxes 0411100 - Dfit: Utility: Curr Year Cr 0411101 - Dsit: Utility: Curr Year Cr 0411102 - Dfit: Utility: Prior Year Cr 0411103 - Dsit: Utility: Prior Year Cr 0411106 - DFIT Utility - Prior year 0411107 - DSIT Utility - Prior Year Provision for Deferred Income Tax Credit Provision for Deferred Income (410.1) 0411410 - Invest Tax Credit Adj - Electric Investment Tax Credit Adjustment Net (411.4) Total Income Taxes On Operating Income Total Utility Operating Expenses Net Utility Operating Income 4181107 - Earnings of Sub Equity in Earnings of Subsidiary Companies (418.1) 0419240 - Miscellaneous Interest 0419429 - IC Moneypool - Interest Inc 0419040 - Interest Inc (sch M) Interest and Dividend Income (419) 0419110 - AFUDC Equity Component Allowance for Other Funds Under Construction (419.1) 0418200 - Non - Util - Depreciation Expense Non Operating Rental Income (418) 0421035 - Realized Derivative Gains 0421340 - Gain on Life Insurance Policy 0421940 - Misc Income 0421032 - Equity Return - Deferred Project 0421960 - NC Return on Coal Rider 0421060 - MINI-TIMBER SALES-NC 0421042 -MINI - Revenue 0421038 - Gain Loss Unconsol Eqty Inv 0421039 - Interest Inc Recovery Clauses 0421800 - NC Equity Return on Retired Plant 0421801 - Wayne Return 0421912 - NCEMPA SC Equity Reserve Miscellaneous Nonoperating Income 0421100 - Gain on Disposal of Property Gain On Disposal Of Property 0417310 - Products and Svcs - NonReg 0417000 - Misc Revenue 0417007 - Misc Revenue-Reg Revenues from Nonutility Operations (417) 0417320 - Exp - Unreg Products and Svcs 0417107 - Administrative Expenses 0417117 - Expenses of Nonutility Oper Expenses of Non utility Operations (417.1) Total Expense - Nonutility Operations Other - Net 12 Months Ending December 31.2016 19,562,652 (3,541,578) 1,838 1,223, 186,084 (696, 793,543) (50,704,244) (75,877 ,291) (6,661,047) (9,928,921) (39,047) (840,004,091) 383, 181,993 (5,304,895) (5,304,895) 300,447,861 4,439,484,506 826,271,515 450,644 450,644 2,896,755 286,833 (121,445) 3,062,143 49,614,088 49,614,088 (524,788) (524,788) (198,024) 2,764,921 3,298,337 539,649 (33,899) 431,694 4,840 (801,681) 4 6,948,155 4,068,168 (6,636,000) 10,386, 161 1,274,712 1,274,712 24,087,943 19,227 (1,449,945) 25,518,661 14,347,110 (32,000) 111,238 14,426,348 (11,092,312) 22,228,399 NCUC Form E-1 DUKE ENERGY PROGRESS, LLC Item No. 2 Docket No. E-2, Sub 1142 NCUC FORM E-1 Data Request For the test year ended December 31, 2016 Income Statement Account - Account Description Total Other Income 0421200 - Loss on Disposal of Property Loss on Disposition of Property (421.2) 0426100 - Donations Donations (426.1) 0426200 - Life Insurance Expense 0426201 - Coli Loan Interest Life Insurance (426.2) 0426300 - Penalties Penalties (426.3) 0426400 - Exp/Civic and Political Activity Exp. For Certain Civic, Political and Related Activity (426.4) 0426510 - Other Other Administrative Expense Affiliate 0426540 - Employee Service Club Dues Employee Service Club Dues 4600000 - Contra Operating Revenues Other IC Net of Contra 0599023 - Other Misc Expense Contra Operating Expenses 0426551 - Impairment and Other Rel Chgs 0426553 - PpandE Impairments Other Deductions (426.5) Other Income Deductions Total Other Income Deductions 0408040 - NC Property Tx - Misc NonUtility 0408400 - SC Property Tx - Misc NonUtility Taxes Other than Income Taxes (408.2) 0409220 - Federal Income Tax - NonUtility CY 0409221 - Federal Income Tax - NonUtility PY 0409225 - CFIT-Nonutility-PY-Audit Income Taxes - Federal (409.2) 0409233 - Tax expense - state nonutility - PY NC Income Tax - Nonutility 0409202 - State Income Tax NonUtility GA Income Tax - Nonutility 0409297- Current State Inc Tax-Non Util F_INC_TAX_NON_UTIL_ST - State Income Tax - Nonutility Income Tax Non Utility (409.2) Income Taxes - Non Utility (Deduction) 0410240 - Dfit: Non - Utility: Curr Year 0410241 - Dfit: Non - Utility: Prior Yr Cr 0410242 - Dsit: Non - Utility: Curr Year 0410243 - Dsit: Non - Utility: Prior Year 0410246 - DFIT Non-Utility - Prior Yr Provision for Deferred Income Taxes (410.2) 0411240 - Dfit: Non - Utility: Curr Yr Cr 0411241 - Other Deferred Taxes PY 0411242 - Dsit: Non - Utility: Curr Yr Cr 0411243 - Dsit: Non - Utility: Prior Yr Cr 0411247 - DSIT Non-Utility - Prior Year Provision for Deferred Income Tax Credit (411.2) 12 Months Ending December 31.2016 75,355,273 (118,435) 118,435 37,429,332 37,429,332 (3, 178,289) 2,099,944 (1,078,345) 700,300 700,300 2,526,385 2,526,385 928,393 928,393 1,494 1,494 0 0 0 0 247,657 633,767 1,811,310 41,388,982 41,507,417 1,730,252 60,024 1,790,277 (4,354, 135) (489,692) (33,615) (4,877,441) (710,345) (710,345) (550,162) (550,162) 96,042 96,042 (1, 164,465) (6,041,906) 9,728,121 913,806 10,421,477 556,573 0 21,619,976 (14,728,323) (497,432) (668,763) 20,883 0 (15,873,635) NCUC Form E-1 DUKE ENERGY PROGRESS, LLC Item No. 2 Docket No. E-2, Sub 1142 NCUC FORM E-1 Data Request For the test year ended December 31, 2016 Income Statement Account - Account Description Provision for Deferred Income Tax (Non Utility) Total Taxes on Other Income and Deductions Net Other Income and Deductions Gross Income 0428025 - Amortization of Debt Discount 0428100 - Amort of Debt Discount and Exp 0428021 - Amort of Deferred Debt Exp Amortization of Debt Discount and Exp (428) 0428165 -Amort on Loss of Reaquired Debt Amortization of Loss on Reaquired Debt (428.1) Total Amortization of Debt Discount and Loss 0430216 - IC Moneypool - LT Interest Exp Interest on Debt to Associated Companies (430) 0431002 - Int Exp - Other 0431400 - Int/Other Notes and Acct Pay 0431710 - Int Exp on Revenue Refunds 0431900 - Interest Expense Other 0431550 - Interest Exp-Assign From Svc 0431011 - Debt Return - Deferred Projects 0431000 - Int Exp - Taxes 0431315 - Coal Ash Spend - Debt Return Other Interest Expense (431) Other Interest 0432000 - AFUDC Debt Component Allowance for Borrowed Funds Used During Construction - CR(432) 0427100 - Interest on Bonds 0427550 - Interest on Bonds Interest on LT Debt Total Interest on Long - Term Debt (427) Net Interest Charges Income Before Extraordinary Items FERC Net Income Note(s): Detail amounts may not add to totals shown due to rounding. 12 Months Ending December 31.2016 5,746,342 1,494,712 32,353,144 858,624,659 952,933 3,541,027 665,149 5, 159, 109 1,073,351 1,073,351 6,232,460 1,889,048 1,889,048 0 104, 164 0 4,377,307 402,204 2,484,765 643 (3,660,984) 3,708,098 5,597,147 (16,851,277) (16,851,277) 3,719,444 260,526, 124 264,245,568 264,245,568 259,223,897 599,400,762 599,400,762 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For the test year ended December 31, 2016 3. Item No. 3 Provide the balance in each total company current asset account and each current liability account and subaccount included in the applicant's chart of accounts by months for the test year. Additionally, show total current assets, total current liabilities, and net current position (current assets, total current liabilities) by months and average (13 month) for the test year. Provide a reconciliation of total company current assets, current liabilities, and net current position as shown on the total company balance sheet for each month of the test year. Please see response attached "DEP Rate Case El 3 Current Position" DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub XXXX NCUC Form E-1 Data Request ForthetastyeerendedDecember31,2018 CURRENT AND ACCRUED ASSETS 0131100-Cash-Vanous8anks(2) 0131315 - Cash - DPCBIS - Bank of Travelers Rest 0131203-CashBOA1925PEC 0131205-CashMellon0469PEC 0131225-CashWells7601 PEC 0131227-CashWells0020PEC 0131234-CashWells4827PEC 0131212-CashMellon2331 PEC 0131031-CashWells0174DEP 0134200-M1soSpeo1alDeposns 132-134Specla1Depgslts 4,816,825 6,235,390 (1,708,371) (17,088,254) 4'0 26,669 {31537838} 4,928,252 3,662,161 (2,316,293) (16,948,610) 450 19,670 (4712746) 15682750 10,401 6,048,869 1,519,586 (2,056,177) (4,583,639) 525 16,655 {3690837} 4,751,603 1,969,266 (2,621,263) (7,613,098) 716 29,766 (1628263) 4,041,852 3,868,916 (2,266,875) (11,687,869) 866 26,275 {2633300} 2,976,492 842,648 (2,681,109) (1,366,877) 1,428,664 20,698 (1962438) 2,337,780 1,886,467 (2,422,743) (9,594,078) (22,710) 26,979 {2131713} 6,419,886 6,639,499 (2,648,626) (17,901,998) (22,390) 22,447 (1686939) 8,581,519 2,544,460 (2,717,348) (3,923,535) 255 30,903 {1735647} 6,323,806 6,693,671 (2,646,369) (12,276,696) 594 31,098 (3182660) 3,941,803 940,939 (2,470,305) (1,630,168) 744 29,941 {3482443} 6,084,468 1,737,991 (2,706,264) (3,119,903) (1,926) 38,181 (1602104) 5,988,466 5,236,288 (1,399,080) (4,315,075) (28,295) 29,991 {97418556} 13.554.701 10,891,372 12.948.133 9,788,788 10.635.079 7,551,984 6.973.690 15,392,966 13.456.640 5,257,134 7.310.874 9,387,966 10.348.376 514971 614971 514971 614,871 614,871 614,871 0136200-Short-Termlnvestment 4100000 0142011-AooountsReoeivableother 0142200-CustAoot-Edp 0142801-A/R-Passportlnterface 0142830-A/R-Meroh/Jobb/ContraotWork 0142001-ARNON-REG 0142430-ARWholesaleBilled 0142050-TransmissionBilling 0142440-A/RBPM-Aotual 0142802-A/R-Gas 122600000 173700000 106400000 27,800,000 122,600,000 173,700,000 108,400,000 299,107,097 (193,277) 1,883,706 91,416 108,461,074 7,629,124 102,314 (281878) 308,731,133 (52,630) 2,024,742 108,600 106,413,688 9,074,938 184,903 {80619} 303,761,703 (74,420) 2,212,667 136,278 92,130,606 6,664,646 164,726 (338260) 261,895,000 (81,515) 2,987,251 158,666 60,322,932 7,267,621 89,826 {295740} 219,619,496 (81,986) 3,137,238 166,246 76,827,642 8,147,928 (27,767) (361) 18 214,179,697 (145,545) 1,530,212 (3,664) 85,542,323 7,416,768 324,521 9836 283,246,086 (140,091) 1,608,623 14,329 113,969,264 4,270,394 (112,066) 2427 276,126,346 (145,545) 1,528,822 4,357 103,795,508 6,185,342 3,086 2427 242,929,262 (190,160) 1,670,048 20,643 69,817,168 6,067,098 183,144 2427 10,790,106 5,082,731 10,715 591,935 4,346,734 7,349,260 (1,436,979) 7,296,749 6,082,731 11,212 647,992 4,921,660 7,868,840 1,261,048 5,114,727 5,082,731 13,327 705,964 6,382,257 8,720,090 1,221,728 6,666,143 13,327 763,746 6,676,466 8,464,973 8,061,869 710,974 7,359,262 29,398,772 (69,283) 7,369,262 1,646,964 6,547 258,056 47,835 395,798 (9,275,218) 4,027,026 7,225,635 39 7,100,450 6,199 68,360 46,301 306,608 (21,830,042) 4,027,026 7,238,783 39 162,498 (59,283) 7,359,262 1,646,964 50 6,199 466,904 58,948 10,344 (26,478,584) 4,027,026 7,251,054 (69,283) 7,369,262 1,646,964 226,126 6,647 636,391 66,833 100,783 (19,626,449) 4,027,026 7,266,078 (4,970,297) {1129654} (4,970,297) (966603) (4,970,297) {959296} 1,696 (4,970,297) (1006280) (5,000,000) {940528} (6,000,000) (963347) (5,000,000) {987268} (6,000,000) (1007790) (5,000,000) {1036852} (6,000,000) (1083681) (5,000,000) {1121116} (6,000,000) (1237939) (8,099,9511 15.925.8001 (5,929,5931 15.973.9811 (5,940,528} 15.963.3471 (5,987,288} 16.007.7901 (8,038,852} 16.083.6811 (8,121,1181 16.237.9391 142 Customer Accounts Recelvable 0143011-A/R-other-GenAootg 0143110-MisoA/R-Clearing 0143130-MisoA/R-stores 0143180-RetMedL1feDen/PremW1thheld 0143230-PoleAttaohRental-SouBell 0143290- M1soCoalA/R 0143320-MarBilled-Edp 0143430-WholesaleRevenue-Billed 0143650-SllmulusAccountsReceivable(I) 0143222-LTTaxReolassFedDr 0143223-LTTaxReolassStateDr 0143272-MisoAcotsReo-EA 0143927-EmployeeReceivables 0143155-otherA/R-Misoelleneous 0143022-A/RByproduots 0143023-A/RByproduots-Gypsum 0142999-AREstimateUnbilled 0143711 -Aoorued NCEMPA Rec -Contra (I) 0143712- NCEMPA Reoother 0143342-ReoeivablesMiscTransaotions 0143970-StateTaxRefunds-Extemal 0143985-LTFranohiseTaxReo-Ext 27900000 4,100,000 136 Temporarv cash Investments 212,883,013 (101,692) 1,551,860 54,167 67,906,598 4,626,667 1,222,772 {1159} 213,467,613 (71,962) 1,691,888 67,806 76,618,772 4,866,097 96,677 245,648,662 (212,577) 1,714,179 69,320 91,549,572 6,034,680 255,272 418,899,575 426.404.755 404,537,845 332.344.041 306,877,458 6,218,960 5,500,000 13,327 820,760 7,476,366 9,178,337 7,668,169 6,927,866 6,600,000 13,327 878,110 7,826,364 8,834,463 6,196,026 6,236,722 1,500,000 13,327 934,886 7,922,661 (4,375,407) 5,583,825 6,236,966 1,600,000 991,678 9,670,238 4,672,048 4,790,609 5,707,433 1,500,000 608 1,048,443 10,435,156 5,951,716 5,204,357 6,209,127 1,600,000 608 1,106,166 9,996,199 6,711,110 6,661,861 6,683,402 1,500,000 608 1,162,325 8,856,885 7,767,389 7,057,739 4'9 7,206,882 1,600,000 608 1,218,466 6,460,036 7,767,389 6,448,637 459 9,869,128 5,090,208 1,759 1,274,050 1,751,951 8,946,371 7,595,858 93 7,359,262 1,646,964 226,075 6,920 628,712 27,486 236,284 (26,921,630) 7,369,262 1,646,964 226,076 6,672 842,719 26,432 218,790 (26,716,986) (4) 226,075 6,547 1,109,567 31,618 202,736 (26,931,075) 226,076 6,647 904,276 43,619 217,634 (26,701,677) 226,075 6,547 591,027 32,743 220,824 (28,693,037) 6,647 266,093 24,497 (914) (31,107,089) (90,000) 6,547 202,838 26,193 612,697 (7,294) 1,320 180,648 8,663 512,597 4,520 1,320 162,376 6,142 (30,692,435) (28,649,296) (32,708,634) 8 15,000 10891 8 16,000 10891 15,000 10891 16,000 10891 15,000 10891 16,000 10891 2,700,846 15,000 10891 288.142.226 162,498 162,498 162,498 8 16,000 10891 225,710,316 (152,998) 2,805,655 137,315 92,956,299 6,210,850 (21,947) 2554163 143otherAccountsRecelvable 0144110 - SCHM Uncolleotible Accrual NC Elec 0144330-AllowanceForDoubtfulAooount 0144700-ProvforMARBSUnoolleotibles 144 Accum Provision ror Uncollectlble Accounts-Credit 0145004- IC Moneypool-STNotes Reoeiv 4663000 145 Notes Recelvable From Associated Companies 0146000-EleotnolnterunitAccount 0146006-ICMoneypool-lnterestReoeiv 0146009-1/CARRollup 0146250-ICNett1ng-AootsRece1vable 0146104-ICAooountsReoeivable 0146992-FederalTaxRefunds-lnterco 0146994-StateTaxRefunds-lnterco 0146998-Franoh1seTax-lnteroo-P/Y 0146996-FranohiseTax-lnteroo 0146991-LTFranohiseTaxReo-lnterco 148 Accounts Receivable From Associated Companies 807,843 (152,385,147) 176,845,651 310,093 100,898,320 5,615,614 437,397 60230000 64991000 50852000 30626000 (5,000,000) {968264} (5,968,2841 164938000 4,863,000 80,230,000 84,881,000 60,862,000 30,626,000 184,838,000 (12,332,766) 776 (100,740,296) 116,606,301 284,308 46,063,060 9,646,080 612,697 9,662,387 33461220 (32,343,852) 579 (122,918,034) 155,323,904 918,843 49,618,304 9,545,080 512,597 15,841,512 58166227 (13,023,212) 424 46,691,082 160,968,273 376,304 49,618,304 9,646,080 (13,262,893) 5,864 (153,617,028) 169,424,504 316,965 16,841,612 68164733 15,841,512 55924359 81,242,603 185,344,892 (136,691,640) 10,315,285 (11,160,866) (11,431,693) (181,868,266) 107,316,392 198,881 100,898,320 6,616,614 437,397 6,937,962 26698847 (206,955,756) 133,700,559 427,181 100,898,320 5,615,614 (10,391,339) 161,766,226 269,688 21,400,133 318,488 (135,153,756) 130,030,062 1,986,091 21,400,133 318,488 (70,693,204) 126,066,896 773,629 21,400,133 318,488 (97,164,739) 115,370,966 785,050 (11,706,922) 140 (126,862,676) 141,890,600 104,134 (12,014,584) 703 (213,318,504) 226,509,396 182,799 (3,555,244) 6,937,952 26598847 9,662,387 36920106 9,662,387 36343625 9,662,387 36767144 9,662,387 35190663 9,662,387 34614182 9,662,387 34037701 28,552 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub XXXX NCUC Form E-1 Data Request ForthetastyeerendedDecember31,2018 0151140-DieselFuelStock 0151170-0ilStockinTransn 0151660-NaturalGaslnventory 0151130-CoalStock 0151131-CoalStockinTransn 119,958,597 116,462,414 113,962,014 113,379,821 114,906,269 115,442,160 115,511,741 115,985,067 116,514,652 116,275,902 115,239,346 115,109,854 13,237 114,902,296 1,044 171,881,045 20335784 148,784,837 12655426 143,826,332 14421655 172,539,733 7450792 178,113,862 6001545 182,418,510 3543647 154,679,413 8140404 119,769,205 7092920 97,109,317 4530961 91,525,565 8997064 92,505,312 9465678 120,605,830 9739591 139,878,691 7504683 0154100-lnventory 0154140-Misclnventory 0154990-SchmlnvCr-SurplusMat'Lldent 0158150-S02CurrentV1ntage 0158120 - RECs - DE Carolinas - NC 0163110-StoresExpense 0163160-StoresExpDistnbullon-Credit 0163180-FreightandExpress 0154200-Limestonelnventory 0156010-otherM&S/lnventory 0163111 - Stores, Exp-WVPA, IMPAoontra 0154122-LimestonelnTransitlnventory 733,667,115 4,712,020 (3,553,204) 2,364,295 80,079,868 33,541,663 2,500,795 148,141 4,990,236 91,590 735,407,623 4,680,620 (3,553,204) 2,364,295 81,686,454 35,002,264 2,529,006 153,000 4,452,943 108,433 736,086,517 4,718,520 (3,553,204) 2,359,335 83,952,471 35,592,509 2,531,705 154,694 4,677,258 106,703 118 734,642,342 5,724,608 (3,553,204) 2,354,789 86,780,608 35,815,767 2,712,603 155,871 4,694,083 155,544 734,084,302 5,678,829 (3,553,204) 2,353,946 89,188,604 36,705,491 2,104,269 157,581 4,499,366 175,866 738,637,574 5,551,915 (3,553,204) 2,352,785 92,444,807 37,129,472 2,965,991 158,796 4,187,941 181,553 742,165,129 5,423,733 (3,553,204) 2,350,186 72,060,722 38,610,664 2,484,807 160,496 3,797,824 175,181 745,787,366 6,884,199 (3,553,204) 2,340,997 74,109,280 40,197,498 3,989,401 161,849 3,582,951 179,235 724,659,760 7,308,123 (3,553,204) 2,326,206 76,743,328 37,906,983 2,488,484 169,612 3,049,912 181,985 731,337,352 8,968,484 (5,140,536) 2,312,057 78,990,376 40,678,701 1,510,185 174,256 3,019,591 173,108 771,211,000 6,438,618 (5,133,405) 2,306,099 80,501,653 41,666,216 359,055 174,968 2,501,005 164,388 768,816,704 9,483,443 (5,133,405) 2,302,238 82,344,700 37,161,468 3,435,752 175,757 4,189,756 168,261 777,024,202 4,006,445 (5,323,359) 2,300,332 84,448,864 28,985,761 3,629,505 172,676 4,810,899 163,973 10,508,667 6 1,588,509 5,428,966 9,553,334 52,062 3,242,310 6,613,853 8,598,000 46,857 2,203,254 4,445,406 7,642,667 41,652 10,289,413 7,306,960 6,687,334 36,447 9,287,249 5,138,513 5,732,000 31,242 8,285,085 2,970,067 4,776,667 29,712 7,282,921 2,478,287 3,821,334 20,832 6,280,757 3,786,229 2,866,000 15,627 5,278,593 1,465,986 1,910,667 10,422 4,276,429 6,406,045 955,334 5,217 3,274,265 1,123,868 12 2,272,101 367,121 72,190 31,704,771 1,352,776 948679 63,620 34,955,407 56,300 40,587,175 47,876 40,653,115 40,257 40,880,580 31,595 46,299,637 23,683 46,595,269 14,875 46,595,269 6,091 52,431,825 47,254,755 167094 160575 152810 133183 97471 285503 178231 128737 153-163otherMaterlalsandSupplles-Net 0165075-lntercoPrepaidlnsuSchM 0165100-Unexpiredlnsurance 0165120-Unexpiredlnsurance-Nuclear 0165400-M1scPrepa1dExpenses 0165011-Ppd-Software-Purchase 0165513-PrepaidExpense-Misc. 0165555-Prepaidlnv-SolarReos 0165538 - LTSA - Long Term Portion FTG 0165008 - LTSA Prepaid Richmond 0165009-Prepaidlnv-SolarReos 6 2,382,760 40,642 263,362 96,138 80,564 33,497,308 1,666,888 988045 501,699 501,699 361,605 '" 36,701,905 41,007,604 165Prepavments 0171100-SCHM Interest Receivable 0172004-RentsRec-RealEstate 172RentsRecelvable 0173100-UnbilledRevenueReceivable 173Accrued UtllltvRevenues 8271 93 171 lnterestandDlvldendsRecelvable 151210 161,210 103763934 103,783,834 187,084 127368236 1'Z7,388,238 180,676 115622206 116,822,208 0175001 - Dem1 Assets - Noncashflw - ST LT Portion of Derivative Instruments Assets rcALCl 162,810 94954102 " 133,183 94369710 8,271 87,471 107586475 286,603 123910032 178,231 148726192 128,737 144306786 13950 13,860 118501 118,601 115854858 43883 43,883 112150 112,160 82742920 34843 34,843 118037 131731 118,037 131,731 125363222 84,864,102 84,388,710 107,688,476 123,810,032 148,728,182 144,308,788 116,864,868 82,742,820 95386459 86,388,468 648.518 3.001.766 648518 3001766 648.518 3.001.766 660685 5671254 660.685 5.671.254 660685 5671254 1.346.269 2.586.669 1346269 2586669 1.346.269 2.586.669 99,428 266809 28,343 99,428 7272050 27,254 99,428 7686494 2,453,845 620,948 9921628 2,719,345 620,948 9376207 2,756,795 620,948 6394006 2,607,365 70,668 2784847 4,204,320 70,668 6328612 14,246,475 70,668 5002273 126,383,222 175 Derivative Instrument Assets 0176001-3rdPartyDenvallveAssetCurrent 0176003-Aoorued lnterestReov-Swaps LT Portion of Derivative Instruments Assets Hedges (CALC) 844,835 844,835 844,835 34,764,707 470,069 8897044 178 Derivative Instrument Assets - Hedqes Total Current and Accrued Assets Less.AdjustmentsforNon-CurrentPortion 158NonCurrentPort1onofAllowances 176LongTermPortionofDenvatelnstrumentAssets AdjustedCurrentandAccruedAssetsTotal 3,001,766 266,809 3,001,766 7,272,050 3,001,766 7,686,494 5,671,254 9,921,628 5,671,254 9,376,207 5,671,254 6,394,006 2,586,669 2,784,847 2,586,669 6,328,612 2,586,669 5,002,273 8,897,044 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub XXXX NCUC Form E-1 Data Request ForthetastyeerendedDecember31,2016 CURRENT AND ACCRUED LIABILITIES 231NotesPayable 0232000-AJPVendorsPayable 0232016-APPS8.9VendorsPayable 0232061-Checksnotoresented-reclass(2) 0232039-Payable401KlncenllveMatch 0232120-VouchersPayable-Special 0232125-NRClnspectionFeePay 0232151-PpAccountsPayable-stores 0232170-AooountsPayable-Coal 0232175-LimestoneandFreightPayable 0232180-AooountsPayable-OilStocks 0232190-CoalFreightPayable 0232460-BulkPowerMarketingPayable 0232480-Co-Generation 0232892-AJPMisoellaneous 0232181-NaturalGasPayable 0232996- Capital-Accruals 0232002-AJP-Misc-Gen-Acctg 0232176-Reagen!Payable 0232177-GenenoByProductsPayable 0232331 - AJP - ENERGY NEIGHBOR FUND 0232270-PassportUnvoucheredLiability 0232410-TransmissionPayables 0232109-AJPBPM-Aotual 0232155-AooountsPayable-StoresCAS 0232178-AooruedSettlementsPayable 76,718,001 49184023 2,646,255 (21,402) 21,096,582 11,601,243 1,143,707 1,838,083 1,019,521 6,983,822 14,936,065 (304,235) 13,535,549 124,555,139 57,127,483 145,030 23,231 9,127,814 81,674 6,852,175 (4,386,924) 11,464,000 62,806,098 67,625,706 68,754,214 53,145,959 62,002,046 73,712,Q42 70,008,492 70,712,788 89,176,616 112,109,359 86,366,123 26,106 87,146,157 9182072 3,135,669 10.514.010 731,322 15358227 1,032,380 3.415.924 1,270,613 13026276 1,547,517 21.114.859 1,817,893 7233247 2,067,411 9.727.613 2,662,795 6441085 2,892,061 6.290.076 3,155,609 102021859 3,863,199 1,178,204 10,544,551 6,510,269 505,690 22,545 1,991,225 1,662,896 22,728,011 6,276,815 170,470 2,537 993,752 5,326,233 16,163,691 (26,390) 15,365,096 78,725,762 45,181,377 216,684 1,095,847 19,187,334 5,210,106 83,414 456,907 1,296,730 1,380,902 13,442,361 5,113,561 90,276 925,612 2,534,800 2,071,353 15,386,260 7,916,415 481,352 923,185 1,775,166 2,761,804 14,569,041 5,464,689 963,299 142,003 1,398,539 1,381,068 19,526,994 9,199,630 873,554 357,849 1,139,994 2,071,685 23,605,513 13,232,770 698,103 1,900 708,419 2,621,323 12,896,078 12,615,948 681,049 4,909 4,681,163 1,404,549 23,542,143 13,613,380 1,444,128 650,450 3,468,817 2,153,128 29,647,887 9,601,869 655,441 946,992 1,399,306 17,622,722 (36,440) 15,594,988 84,535,111 27,993,298 105,349 (171,039) 12,699 10,190,402 75,806 4,897,973 (3,167,865) 22,750,318 (46,490) 15,797,434 69,032,889 20,811,986 204,303 (122,525) 12,632 11,401,503 95,500 5,157,026 (2,516,198) 20,765,119 (26,390) 15,706,583 94,519,426 31,115,641 497,061 (59,042) 12,778 10,461,530 19,437 10,736,025 (3,863,408) 22,462,855 (26,390) 16,676,148 71,750,859 27,385,185 616,003 44,091 12,282 9,063,648 42,661 20,213,483 (3,632,753) 23,861,370 22,267,937 18,896,104 16,129,241 18,407,816 16,686,574 81,306,878 24,657,286 726,411 83,595 13,407 11,041,731 44,399 20,164,897 (1,514,945) 14,584,091 74,010,672 30,342,101 1,352,712 227,599 11,973 10,872,688 2,048 11,253,650 700,195 15,334,790 66,797,506 194,513,816 611,035 149,552 12,250 10,292,836 30,718 5,731,609 862,619 10220924 13,130,012 84,255,319 151,732,590 302,765 143,638 14,874 11,980,546 8,140 5,061,572 2,073,079 10220924 12,289,972 151,127,493 133,496,260 480,712 147,048 26,846 14,762,431 (51,014) 8,170,582 817,609 15051227 22.108.636 2,867,467 (21,402) 487,753 25,474,620 3,896,457 245,894 166,255 3,052,135 12,735,922 79,368 13,667,827 61,484,831 62,744,492 574,063 (167,600) 13,425 9,733,280 72,731 8,110,051 (1,730,166) 14,763,399 (45,647) 13,841,312 67,754,145 47,511,610 460,020 (39,689) 14,215 10,385,430 44,615 7,818,471 244,958 13,064 9,286,047 (763) 6,022,909 (1,584,514) 232AccountsPavable 0233150- IC Moneypool-STNotes Pay 209278000 340508000 264341000 107754000 146706000 154784000 78473000 233NotesPavabletoAssoclatedCompanles 209,276,000 340,608,000 264,341,000 107,764,000 146,706,000 164,784,000 0232232-AJPAflillales 0234000-ICMonevoool-STlnterestPav 0234010-lntercompanyAp 0234250-ICNetting-AootsPayable 0234104-ICAooountsPayable 129964) 7215 24,239,834 166,206,845 10612334 1344.6861 35.140 39,923,790 107,316,392 26472 1377479) 10108 36,153,879 133,700,559 26472 1150.2171 5.835 24,930,931 151,755,225 26472 1173377) 12190 9,499,702 130,030,062 26472 1165.1441 5.173 13,391,586 125,056,895 76,473,000 19,117,969 115,370,967 199.6091 9.557 41,517,473 141,890,500 1104259) 3677 42,538,223 226,509,396 176.4311 3.353 26,589,433 116,605,301 1115370) 3342 28,815,000 155,323,904 1163.1251 3.949 39,149,821 150,182,686 1169934) 8219 50,956,689 169,424,504 4766090 25,298 120953755 20412325 121.094.967 20.109.627 121600548 20123933 122.168.720 20.169.458 122450938 20182329 122.762.847 20.211.044 122484389 20138132 122.619.653 20.113.189 122814369 20074749 122.178.274 20.072.857 121969983 20024257 121.833.195 19.715.553 121384365 19664440 (97,816,642) (5,558,189) 5,615,614 (1,603) 100,898,319 7,794,762 3,081,677 (100,898,319) (5,614,011) 5,615,614 54,219 100,898,319 7,739,189 3,081,677 15,975,661 96,758 5,615,614 54,219 21,400,133 8,409,431 3,081,677 (24,481,810) (44,136) 318,488 (274,352) 21,400,133 9,060,212 3,081,677 (39,735,416) (1,495,167) 318,488 (274,352) 21,400,133 3,565,703 3,081,677 1,138,136 904,148 318,488 (274,352) 3,947,092 4,433,322 6,355,630 795,161 4,895,195 (23,612,734) 33,315,015 4,742,321 5,193,175 (48,792,346) 26,924,759 3,700,647 (8,677,040) 14,082,795 784,700 9,545,080 (2,984,910) 87,955,270 5,308,973 28,552 (2,984,910) (167,505) (167,505) (167,505) (167,505) (167,505) 1,994,817 152,200 (152,338) 1,994,817 152,200 (121,870) 206,198 2,437 53,510 627,967 7,359,262 1,646,964 (1,646,959) (8,165,444) 1,370,704 5,236,745 9,329 2,811,430 5,002 143,179 5,123,916 195234 1,994,817 152,200 (91,403) 1,565,357 2,466 50,031 639,353 7,359,262 1,646,964 (1,646,959) (8,165,444) 1,370,704 10,523,912 18,658 5,620,310 10,004 275,004 5,262,671 220582 1,994,817 1,994,817 (4,155,401) 51,501 1,038,156 (1,646,959) 1,021,133 49,618,304 6,745,022 (50,051,996) (99,610,824) (11,939,364) 9,545,080 (8,007,074) (167,505) (256,914) 51,501 1,038,156 (1,646,959) 1,021,133 49,618,304 6,035,289 (48,792,346) (825,958) (868,041) 9,545,080 (8,677,040) 1,021,133 1,021,133 1,021,133 1,021,133 1,021,133 (60,935) 1,729,441 (30,468) 2,305,922 (335,143) 1,016,355 1,624 45,618 724,245 (304,676) 1,592,836 621 58,031 355,088 (274,208) 576,481 57,677 1,225,269 (243,741) 1,152,962 865 42,101 800,835 (213,273) 2,208,194 889 35,406 1,195,224 (182,805) 896,915 1,234 41,479 687,651 (152,338) (108,417) 1,044 49,875 1,253,155 (461,721) 1,319,203 31,676,857 55,974 16,894,319 30,012 21,854 2,664,939 (461,721) 1,319,203 37,047,528 65,303 19,863,655 35,014 2,888 3,130,855 2061 (1,646,959) 576,436 1,370,704 42,335,138 74,632 22,701,320 40,016 6,913 3,560,829 4570 (1,646,959) 576,436 1,370,704 47,627,642 83,961 25,538,985 45,018 11,361 4,587,154 6970 (1,646,959) 576,436 1,370,704 52,920,146 93,290 28,375,665 50,020 2,969 4,982,228 1947 (1,646,959) 576,436 1,370,704 58,212,650 102,619 31,213,330 55,022 5,401 5,436,378 2428 (46,442) 16,255 1,370,704 428,411 126806) 4432 234 Accounts Pavable to Associated Companies 0235140-Spec1alCustomerDeixis~s 0235152-SolarlnterconnectDeposns(I) 0235000-Cus!DeoNC-CIM 0235001 - Cust Deo SC-CIM 235CustomerDepgslts 0236980-CurrentTaxReclassFedCr 0230690-SC Mun.License-Elect 0236981-FedlncTaxPayable-PrevYr 0236990-FedlncTaxPayable-Current 0236001-Statel!Payableother 0236940-CurrentTaxReclassstateCr 0236965-AooruedSIT-PnorYear 0236992-CurrentLiabilityUTP-Fed 0236983-FedlncPayable-PriorYrs 0236943-StatelncTaxPayable-PnorYrs 0236993-LTLiab1l1tyFed-UTP 0236020-FAS5Non-lncomeTaxReserve 0236050-NCMunic1pallicense-Elec 0236470-FranchiseTaxAoorual 0236520 - S C Pub Ser Comm - Electric 0236375 - SC CORP LiC UNBILL ACCRUAL 0236906-UseTaxPayable 0236926-LTtaxreclassFedcr 0236927-LTtaxreclassstatecr 0236942-StatelncTaxPayable-PnorYrsLT 0236986 - LT Liab1l1ty Fed - KTRA 0236988-LTLiab1l1tySTUTPPGN 0236000-NCPropTax-Electnc 0236040-NCPropTax-MisoNon-Ulll 0236360-SCPropTax-Electric 0236400 - SC Prop Tax - Misc Non - Util 0236150-St/LocalUnemploymentTaxL1ab 0236700-EmployerFICATaxLiab 0236750-FederalUnemploymentTaxLiab 236TaxesAccrued 100,898,319 6,945,247 4,828 39,818 860,063 7,359,262 1,646,964 (1,646,959) (8,165,444) 1,370,704 18,589 4,728,603 4569 456 36,263 777,379 7,359,262 1,646,964 (1,646,959) (8,165,444) 1,370,704 15,816,406 27,987 8,414,854 15,006 377,189 511,756 224934 702 40,033 558,235 7,359,262 1,646,964 (1,646,959) (8,165,444) 1,370,704 21,108,910 37,316 11,246,104 20,008 13,661 1,843,144 1624 1,994,817 576,481 740 49,351 525,893 7,359,262 1,646,964 (1,646,959) (8,165,444) 1,370,704 26,384,353 46,645 14,059,497 25,010 18,559 2,268,868 3026 4740 716 49,618,304 6,382,614 7,019,625 1 7,661 6,654,754 3019 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub XXXX NCUC Form E-1 Data Request ForthetastyeerendedDecember31,2018 0237110-BondslnterestPayable 0237220-lntAccruedonNCCustDeposn 0237240-lntAccruedonSCCustDep 0237038-LTlnterestAccrued 0237039-CurlntAccrued-Tax 0237510-BondslnterestPayable 2371nterestAccrued 0241110-StatelnoomeTaxWh-Employee 0241150-FederallnoomeTaxWh-Employee 0241160-FICAWnhheld-Employee 0241310-SCstateSalesTxonElcEnrgy 0241320-SalesTaxonEloEnrgy 0241335-LooalTaxesWithheld 241Tu.CollectlonsPavable 0242440 - Cash Coll and Contrib To Trustee 0242460-ProvForlnoentiveBenProg 0242461-PriorYearlnoentiveAccrual 0242490-VacationCariyover 0242033-WagesPayable-Accrual 0242395 - CUR&ACCR LIAB MEDJDTL. INS ACT 0242310-GreenPowerPayable 0242540-EsoheamentsPayable 0242650-AccruedPayable-other 0242300-PalmettoCleanEnergyPayable 0242110-ContraotRetentions 0232004-V1s1onDeduot1on 0232005-LongTermD1sabilityDeduction 0232045-SupplementallifeDeduot1ons 0232048 - Supplemental AD&D Deduot1on 0230105-AROLiability-Current 0242330 - Carbon Offset Program - NC 0242396 - CURR&ACCR LIAS-WORKERS COMP 0242398 - CURR&ACCR LIAB MISC 0242152-SolarlnterconnectDeposns 0242215-PayrollSeveranoeReserves 0242216-PayrllSTRetentionfSpolRsrvs 0242997- M1so L1ab- FAS 87 NQ 0242897-NCPensionL1ability-FAS87 0242898-0PEBCurrentliab1l1ty 0242899-FAS112Currentliab1l1ty 242 Misc Current & Accrued Llabllttles 243,277 26,564,858 579,278 416,642 703,044 67473531 254,253 26,776,083 592,010 1,132,753 (13,067) 71844440 240,979 26,981,695 586,355 1,132,753 (13,067) 68744036 297,985 27,193,742 570,204 1,132,753 (13,067) 51741381 287,341 27,367,955 596,609 1,132,753 (13,067) 56146781 295,690 27,508,042 594,322 1,132,753 (13,067) 58842089 286,830 27,692,590 586,333 1,139,446 308,662 27,840,378 610,696 1,139,446 318,587 27,854,314 595,784 1,139,446 330,188 28,007,185 574,725 1,140,550 360,291 28,098,550 599,120 1,140,550 350,088 28,372,915 569,556 1,140,550 388,540 28,460,901 560,458 1,227,153 874,763 41 (352) 1,713,584 7,108,080 784,913 41 (352) 1,025,497 9,261,591 586 524,238 (1,344,763) (340,884) 1,008,351 6,819,480 1016 1,536,135 (1,507,168) (795,243) 990,991 4,960,509 2866 1,584,181 403 (1,756) 900,108 2,295,546 1699 814,677 433 (1,764) 948,178 2,403,972 979 796,406 433 (1,764) 1,059,528 5,487,121 14'7 799,338 433 (1,764) 1,184,814 8,734,768 510 695,329 433 (1,764) 1,249,513 10,880,874 927 1,304,199 392 (1,412) 1,205,661 8,783,082 1250 940,104 392 (1,412) 982,803 4,252,289 4'6 858,360 392 (1,412) 830,277 2,294,214 889 465,198 (9,756) (2,366) 883,180 3,769,824 1359 4,209 52,649,499 57,090,096 61,711,075 12,821,247 18,380,167 22,812,103 27,254,224 31,744,730 36,195,649 46,828,123 51,981,331 56,695,459 69,346,083 49,382,780 3,366,472 25,325 17,432 143,877 1,387,910 427 897,268 (4,209) 60,044 220,009 36,273 49,325,503 7,587,722 25,325 13,581 143,877 1,387,910 147 1,025,628 (2,444) 64,493 240,189 36,505 48,851,490 8,745,374 25,325 16,659 143,877 1,387,810 206 1,004,818 (4,767) 62,725 223,361 34,566 47,683,193 14,168,145 25,325 16,087 143,877 1,121,367 418 1,030,280 (7,217) 60,676 220,982 32,438 47,464,371 747,539 25,325 16,109 143,877 1,123,273 398 954,555 3,921 66,964 250,604 39,872 47,374,812 3,139,528 25,325 15,223 143,877 1,149,597 184 1,120,149 123 65,265 177,419 38,276 47,214,694 5,146,300 25,325 15,226 143,877 1,149,597 204 1,008,294 (3,406) 63,471 170,475 36,493 47,117,706 8,543,035 25,325 15,496 143,877 1,132,511 188 1,168,092 (7,004) 61,634 161,126 34,479 47,054,760 10,671,904 25,325 16,979 143,828 1,131,468 208 1,107,830 (10,625) 60,199 155,407 33,264 47,012,895 108,780 25,325 15,257 143,828 1,148,285 204 949,371 (167) 67,536 195,984 41,646 46,838,241 4,641,852 25,325 14,957 143,828 1,148,285 164 1,024,028 (4,008) 65,774 179,424 39,804 46,758,706 9,469,667 25,325 15,649 143,828 1,132,720 212 1,152,724 (8,078) 64,278 (53,233) 37,879 49,963,315 11,414,363 25,325 15,523 143,828 1,131,021 180 550,930 812 379,694 15,950,119 4,947,171 19,229,705 887,747 2,246,894 295,202 15,798,447 1794877 708 345,336 16,314,410 5,268,598 18,870,089 1,003,654 2,246,894 295,202 15,798,447 1794877 764 303,368 16,679,051 11,168,037 18,509,034 1,119,561 2,246,894 295,202 15,798,447 1794877 768 273,906 15,885,339 11,201,587 17,212,679 1,235,468 2,246,894 295,202 15,798,447 1794877 782 230,987 18,193,843 11,101,445 6,374,638 1,180,958 2,246,894 295,202 15,798,447 1794877 734 197,246 21,141,197 11,602,934 5,223,410 1,237,449 2,246,894 295,202 15,798,447 1794877 704 153,788 20,351,479 11,280,990 4,467,976 1,323,374 2,246,894 295,202 15,798,447 1794877 763 117,853 18,638,639 11,820,822 2,874,247 1,322,615 2,246,894 295,202 15,798,447 1794877 794 82,950 14,938,419 13,241,909 2,596,044 1,393,105 2,246,894 295,202 15,798,447 1794877 747 41,367 17,499,958 14,592,736 6,909,140 1,316,530 2,246,894 295,202 15,798,447 1794877 708 (25,591) 17,507,505 17,820,379 4,530,217 1,387,021 2,246,894 295,202 15,798,447 1794877 728 (100,063) 19,106,942 17,817,473 3,945,295 1,457,511 2,246,894 295,202 15,798,447 1794877 2455539 2,466,638 2481367 2,481,387 0243105-CurrentPorlionofCaplease0bl1gation 2430bllqatlonsUnderca111talLeases-Current 2197254 2,187,264 2223082 2,223,082 2248911 2,248,811 2274739 2,274,738 2300568 2,300,688 Long-Term Porlion of Derivative Instrument L1ablnies Cale 244Derlvallvelnstrllab-Hedqes 4807558 4,807,668 4611963 4,811,883 4463728 4,483,728 426255 (428,266) 323186 (323,188} 0245001-3rdPartyDerivativeL1abilityCurrent Long-Term Porlion of Derivative Instrument L1abilnies-Hedges Calo 245Derlvallvelnstrllab-Hedqes Total Current and Accrued Llabllttles Less.AdjustmentsforNon-CurrentPorlion 244Derivat1velnstrl1ab1l1t1es 245Derivat1velnstrl1ab-Hedges Adjusted Current and Accrued Llabllllles Total Net Current Position TotalCurrentandAccruedAssets TotalCurrentandAccruedliab1l1ties NetCurrentPosnlon 13MonthAvemqes Total Current and Accrued Assets Test Year Avg. (Dec 2015 - Dec 2016) Total Current and Accrued Liab1l1ties Test Year Avg. (Dec 2015 - Dec 2016) NetCurrentPos1tionTestYearAvg.(Dec2015-Dec2016) Reconciliation to Balance Sheet TotalCurrentandAccruedAssetsperabove TotalCurrentandAccruedAssetsperbalancesheet Dllference TotalCurrentandAccruedAssetsperabove TotalCurrentandAccruedAssetsperbalanoesheet Differenoe 2326396 2,328,388 2352225 2,362,226 2378053 2,378,063 2403882 2,403,882 2429710 2,428,710 62,552 257,837 41,688 189,425,700 744 115,185 19,141,333 18,023,550 5,807,337 654,762 2,241,933 328,007 16,476,549 1461673 2507196 2,607,188 5574632 6,674,832 75,958,351 15357740 75,312,622 14288114 103,628,374 23092800 78,237,576 6878131 54,979,067 995431 47,715,776 482524 12,105,409 53693 9,137,104 6,311,057 98254 5,354,612 1080838 2,174,201 81187 275,211 339783 1.342,221,118 1,348,839,648 1,428,888,023 1,088,139,673 888,778,388 1,023,838,340 880,488,718 868,221.243 1,020,808,848 839,662,026 1,068,822,862 1.218.678,278 4,807,558 4,611,963 4,463,728 (426,255) (323,186) 1,322,055,820 1,329,739,571 1,399,412,495 1,061,688,097 888,107,121 1,023,453,816 880,445,026 956,221,243 1,020,711,892 938,571,187 1,058,541,465 1,218,339,493 1,558,456,548 1,838,678,795 1,322,055,820 518,822,975 1,903,327,638 1,329,739,571 573,588,067 1,980,989,633 1,399,412,495 581,5IT,138 1,733,383,257 1,061,688,097 671,695,160 1,724,607,078 989,107,121 735,499,957 1,779,832,902 1,023,453,816 756,379,086 1,725,191,632 980,445,026 744,746,806 1,812,617,565 956,221,243 856,396,322 1,845,081,847 1,020,711,692 824,370,155 1,956,215,453 938,571,187 1,017,644,266 1,962,398,415 1,058,541,465 903,856,950 2,078,807,110 1,218,339,493 860,467,617 1,948,163,690 1,558,456,548 389,707,142 1,838,678,795 1,903,327,638 1,980,989,633 1,733,383,257 1,724,607,078 1,779,832,902 1,725,191,632 1,812,617,565 1,845,081,847 1,956,215,453 1,962,398,415 2,078,807,110 1,948,163,690 1,322,055,820 1322055820 1,329,739,571 1329739571 1,399,412,495 1399412495 1,061,688,097 1061688097 989,107,121 989107121 1,023,453,816 1023453816 980,445,026 980445026 956,221,243 956221243 1,020,711,692 1020711692 938,571,187 938571187 1,058,541,465 1058541465 1,218,339,493 1218339493 1,558,456,548 1558456548 1,684,187,231 5,574,632 ~ ~----- ~~---'~1~16~7 ~ 1,868,407,309 1,142,826,429 725,580,880 Note(s): (l)Detailamountsmaynotaddtototalsshownduetorounding. (2)Dec2015 AmounthasbeenrestatedtoreflectthereclassificationofnegativecashbalancesfromAcoountBltoAccount232inordertobeconsistentwiththecurrentyearpresentation. DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For the test year ended December 31, 2016 4. Item No. 4 Provide a schedule of common investment, reserves, and associated expense amounts, by account, allocated to system electric operations for the twelve-month test period. Show the ultimate factor(s) used to allocate total company amounts to system electric amounts. Also, provide a brief description of the basis of allocation. To be performed by companies utilizing common investment, for electric and non-electric operations. (See Format 4) Please see response attached "DEP Rate Case El 4 Common Investment" DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For the test year ended December 31, 2016 Item No. 4 A Common Investment approach is allowed by the FERC for utilities that provide multiple types of utility services (e.g. electric, gas, water, etc.) where a common account is charged and then allocated to the appropriate types of services. Duke Energy Progress, LLC only provides electric utility services and does not need or use the Common Investment Approach. DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For the test year ended December 31, 2016 S. Item No. 5 Provide the following total company electric monthly balances for the test year operations: a. Construction work in progress, the allowance for funds used during construction, and the related contra allowance for funds used during construction (if these items are sought to be included in the applicant's rate base). b. The unamortized balance for each plant acquisition adjustment, the amount amortized to test year operations and the account charged. c. Materials and supplies (omit this item if the pertinent information is provided in item 3a). d. Balance in accounts payable applicable to materials and supplies. e. Provide information pertaining to nuclear fuel plant accounts as shown in Format S-e. f. Balance in accounts payable applicable to nuclear fuel balances reflected in item Se. g. Balance in accounts payable applicable to electric plant in service. h. Balance in accounts payable applicable to amounts included in plant under construction. i. Short-term borrowings and interest expense on short-term borrowings For Sa please see attached "DEP Rate Case El Sa CWIP and AFUDC" For Sb please see attached "DEP Rate Case El Sb Acquisition Adjustments" For Sc omitted, as data is captured under Item 3 - Current Position For Sd please see attached "DEP Rate Case El Sd Materials and Supplies Accounts Payable" For Se please see attached "DEP Rate Case El Se Nuclear Fuel Account Balances" For Sf please see attached "DEP Rate Case El Sf Nuclear Fuel Accounts Payable" For Sg please see attached "DEP Rate Case El Sg Plant in Service Accounts Payable" For Sh please see attached "DEP Rate Case El Sh CWIP Accounts Payable" For Si please see attached "DEP Rate Case El Si Short Term Debt and Interest Expense" DUKE ENERGY PROGRESS, LLC Item No. Sa Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For the test year ended December 31,2016 Capex by Month TTD CWIP by month *($ in thousands) *($ in thousands) January 2016 80,542 1,345,093 February 2016 95,055 1,395,800 March 2016 98,950 1,331,219 April 2016 100,879 1,345,557 May 2016 100,697 1,353,547 June 2016 150,944 1,431,727 July 2016 80,708 1,439,403 August 2016 229,243 1,597,876 September 2016 141,412 1,586,922 October 2016 152,507 1,650,947 November 2016 270,348 1,614,626 December 2016 263,906 1,639,431 Total Period 1,765,191 AFUDC Contra by Month AFUDC by Month ($ in thousands) ($ in thousands) #20059824 *(including AFUDC Contra) January 2016 (3) 4,330 February 2016 (3) 4,536 March 2016 (3) 5,126 April 2016 (2) 4,683 May 2016 3,956 June 2016 4,783 July 2016 5,766 August 2016 6,233 September 2016 6,402 October 2016 6,751 November 2016 6,743 December 2016 7,156 Total YTD * (11) 66,465 Amounts include CWIP (Account 107000), Nuclear Fuel (Account 0120100) and Future Use (Account 105100) DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For the test year ended December 31,2016 Item No. Sb MONTHLY BALANCES FOR TEST YEAR PGN_CAROLINAS. PGN_FERC 2015 De< Actuals Periodic YTD Accounts: Descriptions: 0114000 0114000- Elec Plant Acquisition Adj 0115000 0115000-Acc Prov Pit Acquis Adj Notel Unamortized Balance 0406505 0406505 - Amort Exp - Acq Purch Adj 349,801,943.42 (5,316,138.95) 344,485,804.47 PGN_CAROLINAS. PGN_FERC 2016 Jan Actuals Periodic YTD PGN_CAROLINAS. PGN_FERC 2016 Feb Actuals Periodic YTD PGN_CAROLINAS. PGN_FERC 2016 Ma. Actuals Periodic YTD PGN_CAROLINAS. PGN_FERC 2016 ... Actuals Periodic YTD 349,801,943.42 (6,379,366.74) 343,422,576.68 349,801,943.42 (7,442,594.53) 342,359,348.89 349,801,943.42 (8,505,822.32) 341,296,121.10 349,801,943.42 (9,569,050.11) 340,232,893.31 1,063,227.79 1,063,227.79 1,063,227.79 1,063,227.79 PGN_CAROLINAS. PGN_FERC 2016 May Actuals Periodic YTD 349,801,943.42 (10,632,277 .90) 339,169,665.52 PGN_CAROLINAS. PGN_FERC 2016 Jun Actuals Periodic YTD 349,801,943.42 (11,695,505.69) 338,106,437.73 PGN_CAROLINAS. PGN_FERC 2016 Jul Actuals Periodic YTD PGN_CAROLINAS. PGN_FERC 2016 Aug Actuals Periodic YTD PGN_CAROLINAS. PGN_FERC 2016 Sep Actuals Periodic YTD PGN_CAROLINAS. PGN_FERC 2016 Oct Actuals Periodic YTD PGN_CAROLINAS. PGN_FERC 2016 Nov Actuals Periodic YTD PGN_CAROLINAS. PGN_FERC 2016 De< Actuals Periodic YTD 349,801,943.42 (12, 758, 733.48) 337,043,209.94 349,801,943.42 (13,821,961.27) 335,979,982.15 349,801,943.42 (14,885,189.06) 334,916, 754.36 349,801,943.42 (15,948,416.85) 333,853,526.57 349,801,943.42 (17,011,644.64) 332,790,298.78 349,801,943.42 (18,074,872.43) 331,727,070.99 AMOUNT AMORTIZED FOR THE TEST YEAR 1,063,227.79 1,063,227.79 1,063,227.79 1,063,227.79 1,063,227.79 1,063,227.79 1,063,227.79 1,063,227.79 Note l - Duke Energy Progress' Plant acquisition adjustments currently being amortized to electric plant are: NCEMPA Acquisition - Duke acquired NCEMPA's ownership of Brunswick, Harris, Mayo and Roxboro. The original acquisition adjustment amount was $349,801,943.42, amortizing over 27 years starting August 2015. The monthly amortization amount of $1,063,227.79 is being amortized to Account 406505-Acquisition Purchase Adjustment. DUKE ENERGY PROGRSS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For the test year ended December 31, 2016 Item No. Sd Estimated Accounts Payable Applicable to Materials and Supplies Dollars in Millions January February March April May June July August September October November December 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 $41 $33 $44 $38 $35 $41 $35 $46 $51 $47 $56 $58 DUKE ENERGY PROGRESS, LLC Docket E-2, Sub 1142 NCUC Form E-1 Data Request For the test year ended December 31, 2016 Month (a) Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 June-16 July-16 Aug-16 Sept-16 Oct-16 Nov-16 Dec-16 13 Month Total 13 Month Average Nuclear Fuel In Process Account No. 120.1 (b) 337,766,031 246,274, 196 246,992,317 247,909,636 248,803,013 249,873,010 278,851,603 279,820,305 333,022,975 257,829,404 283,001,299 303, 188,024 311,017,469 Nuclear Fuel Stock Account No. 120.2 (c) (0) 104,241,975 104,242,754 (0) (0) (0) (0) (0) (0) 82,512,985 82,512,985 (0) 62,792,088 Item No. 5e Nuclear Fuel In Reactor Account No. 120.3 (d) Spent Nuclear Fuel Burn Account No. 120.4 (e) Nuclear Fuel Assemblies Account No. 120.51 (f) Nuclear Fuel Retirements Account No. 120.512 (g) Spent Fuel Storage Canisters 120.55* (h) Net Nuclear Fuel In Rate Base (c thru h) (i) 822,011,827 822,011,827 822,011,827 836,508,431 836,508,431 836,508,431 836,508,431 836,508,431 836,508,431 836,508,431 836,508,431 836,611,115 836,611,115 206,799,870 206,799,870 206,799,870 269,455,954 269,455,954 269,455,954 269,455,954 269,455,954 269,455,954 269,455,954 269,455,954 351,866,255 269,992,039 (923,203, 160) (940,529,012) (955,384,544) (968, 770,212) (985,621,976) (1,003, 171,845) {1,020, 190,315) (1,037,787,958) {1,054,537,355) (1,070,898,084) {1,083,931,662) (1,099,205,594) (1, 119,618,360) 259,723,942 259,723,942 259,723,942 286,814,008 286,814,008 286,814,008 286,814,008 286,814,008 286,814,008 286,814,008 286,814,008 286,814,008 368,688,224 18,931,463 18,846,087 18,760,711 18,675,335 18,523,552 18,371,769 18,219,986 18,259,470 18,102,713 17,950,930 17,853,280 17,662,483 20,923,726 384,263,942 471,094,690 456, 154,561 442,683,517 425,679,970 407,978,317 390,808,065 373,249,905 356,343,752 422,344,225 409,212,997 393,748,267 439,388,832 3,624,349,282 436,302,787 10,831,325,163 3,397,905,536 (13,262,850,076) 3, 729, 186, 124 241,081,505 5,372,951,039 278,796,099 33,561,753 833, 178,859 261,377,349 {1,020,219,237) 286,860,471 18,544,731 413,303,926 *Includes spent fuel storage canister costs during the test period Note: No activities for accounts 120.53 and 120.54 for the test period DUKE ENERGY PROGRESS, LLC Docket E-2, Sub 1142 NCUC Form E-1 Data Request For the test year ended December 31, 2016 Dollars in millions Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Total Average $ $ $ $ $ $ $ $ $ $ $ $ 19 7 7 7 7 35 24 76 43 60 43 $ $ 417 35 88 Item No. 5f DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 Item No. 5g NCUC Form E-1 Data Request For the test year ended December 31,2016 Estimated Accounts Payable Applicable to Electric Plant in Service Dollars in millions January February March April May June July August September October November December 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 Total Average $ $ $ $ $ $ $ $ $ $ $ $ 18 19 19 19 19 19 19 19 19 19 19 20 $ $ 228 19 Accounts Include 0243105 Current Cap Lease Oblig - Tax DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request Item No. Sh For the test year ended December 31,2016 Estimated Accounts Payable Applicable to Amounts Included in Plant Under Construction Dollars in millions January February March April May June July August September October November December Total Average 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 $60 $62 $73 $80 $80 $75 $66 $66 $93 $88 $83 $107 $932 $78 NOTE: Amounts include accounts payable related to Plant in Service projects completed but still receiving final charges. DUKE ENERGY PROGRESS, LLC Docket E-2, Sub 1142 NCUC Form E-1 Data Request Item no. Si For the test year ended December 31, 2016 2016 Short Term Borrowings (isl Money Pool March A ril Ma June 340,508,000 264,341,000 107,754,000 146,706,000 154,784,000 78,473,000 135,736 169,736 74,610 29,844 12,333 13,078 Jul Au ust Interest On Short Term Borrowings (is} Money Pool 1,951 Se tember October November December DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For the test year ended December 31, 2016 6. Item No. 6 a. Provide a schedule by bank by months showing the negotiated line of credit, the average daily usage of credit, the compensating bank balance requirement, and the monthly average daily cash balance calculated from the bank statement( s) for each bank having a compensating balance requirement as requested in Format 6-a. Also, have available for review during field engagements copies of the commitment letters from each bank which has extended a line of credit outlining the terms of the negotiated line of credit. b. If a required compensating balance is provided by a related company, provide an explanation of the arrangement. c. Provide a summary of customer deposits as requested in Format 6-c. Also provide a description of the method and frequency of computing and recording interest on customer deposits and the method and frequency of refunding customer deposits. In response to Item 6a: Duke Energy Progress had an allocated sub-limit of $1.0 billion and a maximum sub-limit of $1.4 billion under the $7.5 billion master credit facility for Duke Energy Corporation. On March 16, 2017 the Duke Energy Corporation master credit facility was amended and increased to $8.0 billion. DEP's current and maximum sub-limits were unchanged. In response to Item b: DEP does not have any bank accounts with compensating balance requirements. The above-referenced credit agreements are available for on-site review. In response to Item c: Please see attached for 6c, summary of customer deposits "DEP Rate Case El 6c Customer Deposits" Please see attached for 6c, method and frequency of computing and recording interest and refunding customer deposits "DEP Rate Case El 6c Customer Deposits Narrative" DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For the test year ended December 31, 2016 Item no. Ge Narrative Page 1of2 North Carolina Residential DEP requires residential applicants secure their facilities in accordance with the North Carolina Utilities Commission. The amount of deposit collected is equal to two-twelfths of the estimated charge for the service for the ensuing twelve months per meter (account). Individual consumer applicants are required an Equifax Credit Check when requesting new or additional service. Additional points of service do not inherit the deposit status as the existing account(s). The credit check provides an overall credit score and positive identification in accordance with the Fair Credit Reporting, Fair & Accurate Credit Transactions Act (FACTA) Red Flag Rule. A cash deposit or guarantor is required when the credit score falls below established threshold, and is required as a condition of service. Cash deposits earn interest at 8% per annum after the initial 90 days. Certain 'triggering' events could result in the requirement of a deposit or additional deposit (when insufficient). These 'triggering' events include, but are not limited to: returned items, delinquent payments, non-pay disconnects, unpaid final bills requiring collection intervention on any associated account, bankruptcy. All residential accounts are periodically reviewed. The customer qualifies for a deposit refund when payments for service for the preceding twelve consecutive bills reflect no disconnects for non-payment or no more than 2 occasions when payment was made after the due date, and not delinquent in payment of bill. If eligible, the customer receives the deposit plus accrued interest. Residential customers who do not meet the deposit refund criteria continue to earn interest on their cash deposit. As stated, DEP pays interest on deposits held more than 90 days at the rate of 8% per annum. Interest accrues annually, and at customer request, is credited to customer account by deducting interest from the amount of the next bill for service following the accrual date. Non-Residential DEP requires non-residential applicants secure their facilities in accordance with the North Carolina Utilities Commission. The amount of deposit we collect is equal to twotwelfths of the estimated charge for the service for the ensuing twelve months per meter (account), and secures the account for the life of the account or until creditworthiness can be affirmed. The deposit requirement may be satisfied with cash or a cash alternative, such as an Irrevocable Letter of Credit from a financial institution satisfactory to DEP, or a Surety Bond from a surety company with an acceptable rating from A.M. Best Co. Cash deposits earn interest at 8% per annum after the initial 90 days. DEP requires publicly traded companies maintain a satisfactory credit rating for deposit waiver consideration. This threshold is S&P BB or Moody's Ba2. DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For the test year ended December 31, 2016 Item no. Ge Narrative Page 2 of 2 DEP reserves the right to assess new or additional deposits on an existing customer based on the customer's overall financial condition or creditworthiness, which may include the DEP's payment history. If an additional deposit was waived due to a satisfactory credit rating and the rating fall below the thresholds, deposit is assessed and due within 30 days from notification. Certain 'triggering' events could result in the requirement of an aggregate deposit or additional deposit (when insufficient) for all accounts associated with the account holder. These 'triggering' events include, but are not limited to: returned items, delinquent payments, unpaid final bills requiring collection intervention on any associated account, information received from credit reporting agencies (Experian, D&B), derogatory public information (tax lien, judgment filings, derogatory UCC filings, bankruptcy). Additionally, acquisitions or newly acquired properties may not necessarily inherit the existing deposit waiver status. While a deposit waiver status for an existing account(s) may be honored, the decision to assess a deposit on newly acquired properties will be based on the aggregate deposit and overall solvency of the account holder. Deposits for non-residential accounts are not automatically refunded based on how payment is made to one trade line, DEP. A review of the aggregate exposure for the customer combined with overall credit worthiness determines eligibility for refund and deposit waiver status. As stated, DEP pays interest on deposits held more than 90 days at the rate of 8% per annum. Interest accrues annually, and at customer request, is credited to the customer account by deducting interest from the amount of the next bill for service following the accrual date. If customer account(s) reflect a current status and the customer prefers an interest check, a check for the interest is issued in lieu of credit toward future billings. DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For the test year ended December 31, 2016 Line No. Month (a) Item no. 6c Receipts (b) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Balance beginning of test year January February March April May June July August September October November December Total (Ll through L13) Average balance (L14: L13) 3,264,455.21 3,368,189.57 3,297,925.19 3,563,123. 74 3,779,277.18 4,256,055.31 3,809,682.39 4,093,373.22 4,140,278. 78 3,284,366.05 3,042,898.54 3,178,197.22 43,077,822.40 16 17 18 19 20 21 22 Amount of deposits received during test period Amount of deposits refunded during test period Number of deposits on hand end of test year Average amount of deposits (L15, Column (d): L18) Interest paid during test period Interest accrued during test period Interest rate 43,077,822.40 (43,508,432.48) 399,187 305.68 6, 765,824.33 8,661,867.42 8.0% Refunds ( c) (3,405,667.65) (3,873, 770.12) (3,866,097.59) (3,845,342.01) (4,091,185.86) (3,977,597.06) (3,944,946.87) (4,288,089.06) (3,504,183. 78) (3,076,075.43) (2,906,110.32) (2, 729,366. 73) (43,508,432.48) Balance (d) 120,953,754.55 121,094,966.99 121,600,547.54 122,168,719.94 122,450,938.21 122, 762,846.89 122,484,388.64 122,619,653.12 122,814,368.96 122,178,273.96 121,969,983.34 121,833,195.12 121,384,364.63 1,586,316,001.89 122,024,307 .84 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For the test year ended December 31, 2016 7. Item No. 7 Provide the following information for each item of electric property held for future use at the end of the test year: a. A description of property b. Its location c. Date purchased d. Cost e. Estimated date to be placed in service, and f. A brief description of intended use Please see attached "DEP Rate Case El 7 Property Held for Future Use" DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For the test year ended December 31,2016 DESCRIPTION Item No. 7 LOCATION DATE PURCHASED OR BOOK VINTAGE YR COST ESTIMATED DATE TO BE USED DESCRIPTION OF INTENDED USE !ACCOUNT 105.10 ANALYSIS DISTRIBUTION McDowell Street Substation Elm Street 115kv Substation McDowell Street Substation - Missions Hospital Porter's Neck 230kv Substation Bear Branch SUB-Purchase Land Site & Acq for Chatham Park N. Sub Acquire Volvo Dealership Property Flat Creek-Purchase Land Buncombe County, NC Asheville, NC Buncombe County, NC Wilmington, NC Sanford, Lee County, NC N/A Asheville, NC Asheville, NC 2013 2013 2015 2015 2015 2016 2016 2015 TOTAL DISTRIBUTION 5,554,453 2,967,744 2,171,148 8,260,423 49,228 32 1,294 77 868 19,082,190 2021 2018 2020 2023 2017 2020 2020 - 2022 2020 - 2023 1,122,763 1,184 5,290,412 97,885 6,512,245 2020 N/A 2020 2018 Distribution Distribution Distribution Distribution Distribution Distribution Distribution Distribution Substation Substation Substation Substation Access road Substation Substation Substation TIES TO DISTRIBUTION STATIONS IN NC & SC TRANSMISSION Jacksonville - Grant's Creek 230kv Line Asheville SE-Rep Transl Add Cap BNK Jacksonville, Onslow County, NC Asheville, Buncombe County, NC Carven Street Substation Accuire Row-New Tap To Mills Gap Buncombe County, NC Buncombe County, NC 2014 N/A 2013 2015 Transmission Line Charges that should have gone to Account 107 Transmission Substation Transmission Line TIES TO TRANSMISSION LINES IN NC PRODUCTION TOTAL PRODUCTION TOTAL ACCOUNT 105.10 25,594,435 (A) TIES TO WORKING TRIAL BALANCE FOR ACCT 0105100 !ACCOUNT 105.20 ANALYSIS DISTRIBUTION Garner East 230kv Substation Land Purchase Sanford South Distribution Substation Jacksonville - Blue Creek 115kV Substation Garner, Wake County, NC Florence Clausen 115KV - T2823 Grant's Creek 230kV Line Sumter Chenyvale 115KV SUBS - T3452 Sumter Oswego RD 115/23KV - T3982 Sumter Pocalla 230KV SUBS - T3984 TOTAL DISTRIBUTION Florence County, SC Onslow County, NC Cherryvale, Sumter County, SC Sumter County, SC Sumter County, SC TRANSMISSION Lee - Plant Selma 115kv Line Sanford, Lee County, NC Jacksonville, Onslow County, NC Johnston, Wayne Counties - NC Florence - Marion 230kv Line Florence - Marion 230kv Line Florence - Marion 230kv Line Dillon County - SC Florence County-SC Cape Fear - Siler City 230kv Line Siler City, Chatham County, NC Lee County, NC Vance County, NC Cape Fear - Siler City 230kv Line 115KV-155 Henderson- North 115kv Feeder Wommack 230KV - T 4433 TOTAL TRANSMISSION Marion County-SC Lenoir County, NC 2011 2009 2012 1973 2013 1991 1979 1989 2009 2009 2009 2009 2009 2009 2009 1998 3,610,841 350,441 2,280,331 9,340 991,126 93,650 13,749 40,837 7 390 314 2023 2017 2017 2027 2020 2022 2022 2022 416,389 381,007 2,178,966 440,593 3,080,978 1,375,370 184,740 97,777 8,155,820 2025 2023 2023 2023 2023 2023 2017 2026 1,458,908 633,647 (6,810) 2,085,745 2020 2018 N/A Distribution Distribution Distribution Distribution Distribution Distribution Distribution Distribution Substation Substation Substation Substation Line Substation Substation Substation TIES TO DISTRIBUTION FOR ACCT 0105200 Transmission Transmission Transmission Transmission Transmission Transmission Transmission Transmission Line Line Line Line Line Line Line Substation TIES TO TRANSMISSION FOR ACCT 0105200 PRODUCTION Mayo Fossil - Future Land - Ash Pond Weatherspoon IC - Future Generation Addition Nashville Construction Center- N102 TOTAL PRODUCTION Roxboro, Person County, NC Lumberton NC Nashville, Nash County, NC 1983 2008 N/A Ash Pond Generation Addition Miscoded item TIES TO PRODUCTION FOR ACCT 0105200 TOTAL ACCOUNT 105.20 17,631,879 (A) TIES TO WORKING TRIAL BALANCE ACCT 0105200 TOTAL ACCOUNT 105 43,226,314 l(A) TIES TO WORKING TRIAL BALANCE FOR ACCTS 0105100 & 0105200 ENDING 12131/2016 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For the test year ended December 31, 2016 8. Item No. 8 a. Provide schedules in comparative form showing by months for the test year the total company balance in each electric plant and reserve account, or subaccount included in the applicant's chart of accounts as shown in Fmmat 8a. b. Provide a statement of electric plant in service per company books for the test year. See Format 8b. For 8a please see attached "DEP Rate Case El 8a Electric Plant and Reserve Balances" For 8b please see attached "DEP Rate Case El 8b Statement of Electric Plant in Service" DUKE ENERGY PROGRESS, LLC DacketNa.E-2,Sub1142 NCUC Farm E-1 Data Request FarthetestyearendedDecember31,2016 MONTHLY 6ALANCES IN TOTAL COMPANY ELECTRIC PLANT ACCOUNTS Descrll!!lans: 0120551 0101000-PropertyPlantandEquipment 0101100-LTCapitalLeaseAsset 0101130-CAPLEASE-NCEMC 0101315-AROAsset-CoalAsh 0101499-AssetRetirementObligations 0101710-EPISContraADC-RETAIL-NC 0101711-EPIS-HARRISDSLW 0101720-EPISContraADC-RETAIL-SC 0101730-EPISContraADC-WHOLESALE 0101760-CONTRAEPIS-OATT 0101770-EPISContraADC-PC 0102100-ElectricPlantPurchased 0105100-PltHeldForFutureUse-WoSys 0105200-PltHeldForFutureUse-Prs 0106000-CompConstUndassified 0106014-lntangiblesGeneral 0106601-CCNCOtherinclntangibles 0107000-SCHMCWip 0107200-NRCWIP(I) 0107950-Allocated-CommonCWIP 0108000-AccumulatedDDandA-Ppande 0108060- CONTRA-ACCUM DEPR DATT 0108155-FAS143CORCONTRA 0108301-AccumDepreciationCOR 0108305-DEPCORSettlement-NCUC 0108315-AROAccumDepr-CoalAsh 0108406-ACCDEPRHARRISDSLW 0108408-ACCELERATEDDEPRECIATIONNCUC 0108409-ACCELERATEDDEPRECIATIONSCPSC 0108499-AroAssetAccumDepreciation 0108600-SCHMRetirementWip 0108620-RWIP-RegLiab 0108640-ARO Liability-Ash Mgmt 0108710-DEPRContraADC-RETAIL-NC 0108720-DEPRContraADC-RETAIL-SC 0108730-DEPRContraADC-WHOLESALE 0108740-AccDEPRContraADC-PC 0108741-AccDEPR-WHRT988 0108742-AccDEPR-WHRTPA 0108743-AccDEPR-WHRTDiff 0108744-AccDEPR-SCRTDiff 0111100-AccProv-AmorElecPltinSer 0114000-ElecPlantAcquisitionAdj 0115000-AccProvPltAcquisAdj 0120100-NudearFuelinProcess 0120200-NudearFuelMaterialandAssemb 0120300-NucFuelAssembliesinReactor 0120400-SpentNudearFuelAssemblies 0120510-AccAmor-NucFuelAssemblies 0120512-NudearFuelRetirements 0120550-Accamort-Canister-OconeeRob 0120551-Acc Amor-Canister_McGuire Brun NET llTILITY PLANT Dec-15 21,166,530,072.92 125,270,508.25 18,844,329.54 933,164,586.32 892,656,054.46 (322,976,833.97) (551,297,290.66) (36,449,761.08) (37,039,428.13) Jan-16 21,172,626,336.83 125,100,364.95 18,831,368.38 1,151,038,102.54 892,656,054.46 (322,976,833.97) (551,297,290.66) (36,449,761.08) (37,039,428.13) Feb-16 21,226,047,191.68 124,930,221.65 18,818,407.22 933,164,586.32 892,656,054.46 (322,976,833.97) (551,297,290.66) (36,449,761.08) (37,039,428.13) Mar-16 21,243,145,099.38 124,760,078.35 18,805,446.06 933,164,586.32 892,656,054.46 (322,976,833.97) (551,297,290.66) (36,449,761.08) (37,039,428.13) AE!r-16 21,297,152,008.27 124,587,146.48 18,792,484.90 933,192,184.42 895,270,628.27 (322,929,265.46) (551,297,290.66) (36,449,761.08) (37,039,428.13) Ma~-16 21,291,114,591.89 124,417,003.18 18,779,523.74 933,210,556.34 895,270,628.27 (322,929,265.46) (551,297,290.66) (36,449,761.08) (37,039,428.13) Jun-16 21,245,499,002.91 124,249,648.45 18,766,562.58 974,076,473.29 895,270,628.27 (322,912,661.38) (551,297,290.66) (36,447,272.70) (37,036,956.77) Jul-16 21,700,277,801.59 124,079,505.15 18,753,601.42 974,096,555.19 895,270,628.27 (322,912,657.12) (551,297,290.66) (36,447,272.70) (37,036,956.77) Aus-16 21,725,444,730.70 123,909,361.85 18,740,640.26 974,082,349.36 895,270,628.27 (322,880,421.65) (551,297,290.66) (36,443,287.30) (37,032,990.64) SeE!-16 21,756,660,265.66 123,739,218.55 18,727,679.10 883,255,350.68 895,270,628.27 (322,885,157.92) (551,297,290.66) (36,446,589.86) (37,036,270.27) Oct-16 21,780,542,299.70 123,569,075.25 18,714,717.94 883,259,474.50 895,270,628.27 (322,868,625.78) (551,297,290.66) (36,446,589.86) (37,036,270.27) Nav-16 21,737,047,080.92 123,398,931.95 18,701,756.78 883,262,637.27 895,270,628.27 (322,822,347.54) (551,297,290.66) (36,440,726.85) (37,030,276.10) Dec-16 21,923,112,997.26 123,228,788.52 18,688,795.66 825,663,145.80 895,270,628.27 (322,147,307.61) (551,297,290.66) (36,350,249.59) (36,939,347.78) (6,806,340.07) (6,806,340.07) (6,806,340.07) (6,806,340.07) (6,806,340.07) (6,806,340.07) (6,806,340.07) (6,806,340.07) (6,806,340.07) (6,794,153.64) (6,794,151.72) (6,794,151.71) (6,794,243.16) 16,500,174.90 14,634,990.76 3,087,333,870.99 16,426,169.00 14,634,990.76 3,144,624,383.15 16,453,205.75 14,257,113.01 3,127,778,196.58 16,461,003.03 14,175,682.01 3,250,063,345.60 16,555,820.42 14,175,682.01 3,233,793,441.24 16,588,012.05 14,175,682.01 3,316,206,124.11 16,666,633.77 14,175,682.01 3,366,538,100.64 16,735,922.63 14,175,682.01 2,964,776,137.91 16,767,742.66 14,175,682.01 3,003,613,634.73 16,913,079.71 14,175,682.01 3,013,740,978.86 24,954,000.87 14,175,682.01 3,058,867,017.46 25,551,741.72 16,640,753.23 3,322,176,063.65 25,594,434.66 17,631,879.05 3,291,160,149.54 1,399.55 1,108,311,519.49 1,399.55 1,08.8,924,971.08 1,399.55 1,138,886,495.27 1,399.55 1,074,565,527.42 1,399.55 1,087,915,798.17 1,399.55 1,094,803,849.13 1,399.55 1,147,358,425.75 1,153,996,124.04 1,259,235,535.41 1,323,054,897.78 1,353,867,055.00 1,296,761,253.48 1,303,611,534.37 (9,354,640,273.11) (9,380,548,401.42) (9,418,326,060.31) (9,441,137,909.07) (9,437,623,213.08) 73.87 (9,472,026,611.40) (9,456,542,851.63) (9,505,763,671.85) (9,543,753,639.16) (9,563,661,070.06) (9,592,009,655.46) (9,554,297,745.84) (9,570,351,145.48) 26,235,987.49 (1,347,857,566.24) 26,235,987.49 (1,352,992,614.83) 26,235,987.49 (1,356,436,298.71) 26,235,987.49 (1,359,969,629.71) 26,235,987.49 (1,356,272,216.93) 26,235,987.49 (1,361,446,465.27) 26,235,987.49 (1,365,931,254.84) 26,235,987.49 (1,356,409,100.42) 26,235,987.49 (1,361,936,321.24) 26,235,987.49 (1,364,397,508.66) 26,235,987.49 (1,367,350,094.24) 26,235,987.49 (1,371,452,075.53) 26,235,987.49 (1,374,240,576.93) (46,179,848.47) 332,527,128.67 (378,201,988.00) (69,967,065.48) (130,818,251.42) (204,863,600.08) 176,834,258.02 (273,239,731.78) 333,079,023.20 (377,179,821.00) (69,777,965.48) (133,793,384.62) (201,942,337.53) 176,496,559.21 3,215,401.42 215,639,089.59 22,267,405.09 23,333,559.09 6,215,575.46 8,672,034.20 3,475,624.28 465,801.49 27,918,607.02 (250,775,070.69) 349,801,943.42 (6,379,366.74) 246,274,195.92 104,241,975.47 822,011,826.82 206,799,870.29 (940,529,011.72) 259,723,942.30 7,785,587.64 11060499.53 16,537,851,289.91 (63,368,645.88) 333,630,917.73 (376,157,654.00) (69,588,865.48) (136,768,520.94) (203,180,926.99) 179,714,370.44 3,473,823.67 216,054,380.73 22,311,447.31 23,378,311.99 6,225,331.00 8,642,230.44 3,459,691.22 460,690.34 27,811,680.68 (253,545,431.99) 349,801,943.42 (7,442,594.53) 246,992,317.46 104,242,753.98 822,011,826.82 206,799,870.29 (955,384,543.82) 259,723,942.30 7,759,028.64 11001682.53 16,557,955,903.41 (72,571,367.30) 334,182,812.26 (375,135,487.00) (69,399,765.48) (139,743,656.02) (203,245,988.21) 182,518,338.67 1,535,648.31 216,469,671.87 22,355,489.53 23,423,064.89 6,235,086.54 8,612,426.68 3,443,758.16 455,579.19 27,704,754.34 (256,089,592.03) 349,801,943.42 (8,505,822.32) 247,909,635.55 (0.02) 836,508,431.48 269,455,953.81 (968,770,211.83) 286,814,008.12 7,732,469.64 10942865.53 16,580,997,064.76 (81,164,675.68) 334,734,706.79 (374,113,320.00) (69,210,665.48) (142,718,791.42) (204,448,093.55) 172,267,951.12 1,754,739.58 216,837,394.50 22,399,531.75 23,467,817.79 6,244,842.08 8,582,622.92 3,427,825.10 450,468.04 27,597,828.00 (255,889,076.48) 349,801,943.42 (9,569,050.11) 248,803,012.63 (0.02) 836,508,431.48 269,455,953.81 (985,621,975.71) 286,814,008.12 7,705,910.64 10817641.53 16,604,192,046.66 (89,149,658.32) 335,286,601.32 (373,091,153.00) (69,021,565.48) (145,702,416.72) (206,421,763.12) 177,148,799.04 2,300,894.16 217,252,543.94 22,443,573.97 23,512,570.69 6,254,597.62 8,552,819.16 3,411,892.04 445,356.89 27,490,901.66 (255,929,805.65) 349,801,943.42 (10,632,277.90) 249,873,009.80 (0.02) 836,508,431.48 269,455,953.81 (1,003,171,845.27) 286,814,008.12 7,679,351.64 10692417.53 16,624,613,450.37 (97,744,008.26) 335,838,495.85 (372,068,986.00) (68,832,465.48) (148,686,041.93) (207,390,589.85) 184,487,912.80 2,951,917.79 217,709,846.93 22,486,773.36 23,556,873.43 5,000,239.20 8,523,015.40 3,395,958.98 440,245.74 27,383,975.32 (258,437,644.20) 349,801,943.42 (11,695,505.69) 278,851,602.91 (0.02) 836,508,431.48 269,455,953.81 (1,020,190,314.72) 286,814,008.12 7,652,792.64 10567193.53 16,738,245,541.22 (106,338,356.73) 336,390,390.38 (371,046,819.00) (68,643,365.48) (151,669,665.97) (185,156,671.35) 171,434,695.03 3,370,278.26 218,124,962.42 22,530,811.12 23,601,621.91 5,009,994.74 8,493,211.64 3,380,025.92 435,134.59 27,277,048.98 (260,797,439.91) 349,801,943.42 (12,758,733.48) 279,820,305.36 (0.02) 836,508,431.48 269,455,953.81 (1,037,787,957.59) 286,814,008.12 7,817,500.09 10441969.53 16,738,234,513.11 (115,026,375.06) 336,942,284.91 (370,024,652.00) (68,454,265.48) (154,653,290.77) (185,641,619.43) 175,384,493.33 542,767.03 218,507,846.69 22,570,863.48 23,642,404.26 5,019,750.28 8,463,407.88 3,364,092.86 430,023.44 27,170,122.64 (263,167,057.72) 349,801,943.42 (13,821,961.27) 333,022,975.06 (0.02) 836,508,431.48 269,455,953.81 (1,054,537,354.72) 286,814,008.12 7,785,967.64 10316745.53 16,887,744,087.14 (123,703,496.40) 337,494,179.44 (369,002,485.00) (68,265,165.48) (157,636,912.99) (186,884,744.62) 178,194,748.97 798,861.90 218,927,644.42 22,618,196.67 23,690,425.28 5,017,319.39 8,433,604.12 3,348,159.80 424,912.29 27,063,196.30 (265,537,130.89) 349,801,943.42 (14,885,189.06) 257,829,403.84 82,512,985.07 836,508,431.48 269,455,953.81 (1,070,898,083.88) 286,814,008.12 7,759,408.64 10191521.53 16,859,328,002.94 (133,086,564.20) 338,046,073.97 (367,980,318.00) (68,076,065.48) (160,620,536.93) (216,775,511.67) 180,651,876.56 214,487.00 219,326,169.22 22,662,233.21 23,735,172.53 5,027,045.39 8,403,800.36 3,332,226.74 419,801.14 26,956,269.96 (267,906,418.13) 349,801,943.42 (15,948,416.85) 283,001,299.25 82,512,985.07 836,508,431.48 269,455,953.81 (1,083,931,661.54) 286,814,008.12 7,786,982.14 10066297.53 16,906,051,404.33 (142,469,636.45) 338,597,968.50 (366,958,151.00) (67,886,965.48) (163,604,161.20) (253,909,733.67) 184,532,690.70 377,935.37 219,694,913.54 22,700,406.74 23,773,925.61 5,036,771.38 8,373,996.60 3,316,293.68 414,689.99 26,849,343.62 (270,279,641.59) 349,801,943.42 (17,011,644.64) 303,188,023.84 (0.02) 836,611,115.30 351,866,255.08 (1,099,205,594.43) 286,814,008.12 7,721,409.14 9941073.53 17,063,200,035.94 (151,852,704.15) 339,149,863.03 (365,935,984.00) (67,697,865.48) (166,587,784.16) (256,179,591.25) 188,487,948.60 1,090,005.98 219,434,854.85 22,653,960.41 23,727,738.80 5,046,588.83 8,344,192.84 3,300,360.62 409,578.84 26,742,417.28 (272,863,816.46) 349,801,943.42 (18,074,872.43) 311,017,468.84 62,792,087.80 836,611,115.30 269,992,039.24 (1,119,618,360.25) 368,688,223.96 7,655,836.14 13267889.53 17,191,481,315.54 215,223,798.45 22,223,362.87 23,288,806.19 6,205,819.92 8,701,837.96 3,491,557.34 470,912.64 28,025,533.36 (247,294,421.77) 349,801,943.42 (5,316,138.95) 337,766,031.04 (0.02) 822,011,826.82 206,799,870.29 (923,203,160.24) 259,723,942.30 7,812,146.64 11119316.53 16,538,599,619.44 Item No. Ba DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request Forthetestyearended December31,2016 PGN_CAROUNAS. Entity: PGN FERC Year: 2015 Month: Df!C .Scenario: Actuals PGN_CAROLINAS. PGN FERC PGN_CAROLINAS. PGN FERC PGN_CAROUNAS. PGN FERC ,.. 2016 2016 Actuals Actuals Actuals Actuals Actuals PGN_CAROLINAS. PGN FERC 2016 Jun Actuals Actuals Actuals Actuals Actuals Actuals Actuals View: Periodic Periodic Periodic Periodic Periodic Periodic Periodic Periodic Periodic Periodic Periodic Periodic Periodic View: YTD VTD VTD YTD VTO YID YTD VTD YTO VTD VTD YTD VTO 2015 PGN_CAROLINAS. PGN FERC 2015 Mat Feb PGN_CAROLINAS. PGN FERC 2015 May APt PGN_CAROLINAS. PGN FERC 2015 PGN_CAROUNAS. PGN FERC 2016 PGN_CAROLINAS. PGN FERC PGN_CAROLINAS. PGN FERC PGN_CAROUNAS. PGN FERC 2015 2016 Oct 2016 ... Jul ... PGN_CAROLINAS. PGN FERC 2011> De< NOV Accounts: 0101000 0101100 0101130 0101315 0101499 0101710 0101711 0101720 0101730 0101760 0101770 0102100 0105100 0105200 0106000 0106014 0106601 0107000 0107200 0107950 0108000 0108060 0108155 0108301 0108305 0108315 0108406 0108408 0108409 0108499 0108600 0108620 0108640 0108710 0108720 0108730 0108740 0108741 0108742 0108743 0108744 0111100 0114000 0115000 0120100 0120200 0120300 0120400 0120510 0120512 0120550 0120551 NET UTILllY PLANT 21,166,530,073 125,270,508 18,844,330 933,164,586 892,656,054 (322,976,834) (551,297,291) (36,449,761) (37,039,428) F_TOT_NIT_UTIL_PLT check (6,806,340) 21,172,626,337 125,100,365 18,831,368 1,151,038,103 892,656,054 (322,976,834) (551,297,291) (36,449,761) (37,039,428) (6,806,340) 21,226,047,192 124,930,222 18,818,407 933,164,586 892,656,054 (322,976,834) (551,297,291) (36,449,761) (37,039,428) (6,806,340) 21,243,145,099 124,760,078 18,805,446 933,164,586 892,656,054 (322,976,834) (551,297,291) (36,449,761) (37,039,428) (6,806,340) 21,297,152,008 124,587,146 18,792,485 933,192,184 895,270,628 (322,929,265) (551,297,291) (36,449,761) (37,039,428) 21,291,114,592 124,417,003 18,779,524 933,210,556 895,270,628 (322,929,265) (551,297,291) (36,449,761) (37,039,428) 21,245,499,003 124,249,648 18,766,563 974,076,473 895,270,628 (322,912,661) (551,297,291) (36,447,273) (37,036,957) 21,700,277,802 124,079,505 18,753,601 974,096,555 895,270,628 (322,912,657) (551,297,291) (36,447,273) (37,036,957) 21,725,444,731 123,909,362 18,740,640 974,082,349 895,270,628 (322,880,422) (551,297,291) (36,443,287) (37,032,991) 21,756,660,266 123,739,219 18,727,679 883,255,351 895,270,628 (322,885,158) (551,297,291) (36,446,590) (37,036,270) 21,780,542,300 123,569,075 18,714,718 883,259,475 895,270,628 (322,868,626) (551,297,291) (36,446,590) (37,036,270) 21,737,047,081 123,398,932 18,701,757 883,262,637 895,270,628 (322,822,348) (551,297,291) (36,440,727) (37,030,276) 21,923,112,997 123,228,789 18,688,796 825,663,146 895,270,628 (322,147,308) (551,297,291) (36,350,250) (36,939,348) (6,806,340) (6,806,340) (6,806,340) (6,794,152) (6,794,152) (6,794,243) 16,500,175 14,634,991 3,087,333,871 16,426,169 14,634,991 3,144,624,383 16,453,206 14,257,113 3,127,778,197 16,461,003 14,175,682 3,250,063,346 16,555,820 14,175,682 3,233,793,441 16,588,012 14,175,682 3,316,206,124 16,666,634 14,175,682 3,366,538,101 16,735,923 14,175,682 2,964,776,138 16,767,743 14,175,682 3,003,613,635 16,913,080 14,175,682 3,013,740,979 24,954,001 14,175,682 3,058,867,017 25,551,742 16,640,753 3,322,176,064 25,594,435 17,631,879 3,291,160,150 1,400 1,108,311,519 1,400 1,088,924,971 1,400 1,138,886,495 1,400 1,074,565,527 1,400 1,087,915,798 1,400 1,094,803,849 1,400 1,147,358,426 580 1,153,996,124 580 1,259,235,535 580 1,323,054,898 580 1,353,867,055 580 1,296,761,253 1,303,611,534 (6,806,340) (6,806,340) (6,794,154) (9,354,640,273) (9,380,548,401) (9,418,326,060) (9,441,137,909) (9,437,623,213) 74 (9,472,026,611) (9,456,542,852) (9,505,763,672) (9,543,753,639) (9,563,661,070) (9,592,009,655) (9,554,297,746) (9,570,351,145) 26,235,987 (1,347,857,566) 26,235,987 (1,352,992,615) 26,235,987 (1,356,436,299) 26,235,987 (1,359,969,630) 26,235,987 (1,356,272,217) 26,235,987 (1,361,446,465) 26,235,987 (1,365,931,255) 26,235,987 (1,356,409,100) 26,235,987 (1,361,936,321) 26,235,987 (1,364,397,509) 26,235,987 (1,367,350,094) 26,235,987 (1,371,452,076) 26,235,987 (1,374,240,577) (46,179,848) 332,527,129 (378,201,988) (69,967,065) (130,818,251) (204,863,600) 176,834,258 (63,368,646) 333,630,918 (376,157,654) (69,588,865) (136,768,521) (203,180,927) 179,714,370 3,473,824 216,054,381 22,311,447 23,378,312 6,225,331 8,642,230 3,459,691 460,690 27,811,681 (253,545,432) 349,801,943 (7,442,595) 246,992,317 104,242,754 822,011,827 206,799,870 (955,384,544) 259,723,942 7,759,029 11001683 16,557,955,903 (72,571,367) 334,182,812 (375,135,487) (69,399,765) (139,743,656) (203,245,988) 182,518,339 1,535,648 216,469,672 22,355,490 23,423,065 6,235,087 8,612,427 3,443,758 455,579 27,704,754 (256,089,592) 349,801,943 (8,505,822) 247,909,636 (81,164,676) 334,734,707 (374,113,320) (69,210,665) (142,718,791) (204,448,094) 172,267,951 1,754,740 216,837,395 22,399,532 23,467,818 6,244,842 8,582,623 3,427,825 450,468 27,597,828 (255,889,076) 349,801,943 (9,569,050) 248,803,013 (89,149,658) 335,286,601 (373,091,153) (69,021,565) (145,702,417) (206,421,763) 177,148,799 2,300,894 217,252,544 22,443,574 23,512,571 6,254,598 8,552,819 3,411,892 445,357 27,490,902 (255,929,806) 349,801,943 (10,632,278) 249,873,010 (97,744,008) 335,838,496 (372,068,986) (68,832,465) (148,686,042) (207,390,590) 184,487,913 2,951,918 217,709,847 22,486,773 23,556,873 5,000,239 8,523,015 3,395,959 440,246 27,383,975 (258,437,644) 349,801,943 (11,695,506) 278,851,603 (106,338,357) 336,390,390 (371,046,819) (68,643,365) (151,669,666) (185,156,671) 171,434,695 3,370,278 218,124,962 22,530,811 23,601,622 5,009,995 8,493,212 3,380,026 435,135 27,277,049 (260,797,440) 349,801,943 (12,758,733) 279,820,305 (115,026,375) 336,942,285 (370,024,652) (68,454,265) (154,653,291) (185,641,619) 175,384,493 542,767 218,507,847 22,570,863 23,642,404 5,019,750 8,463,408 3,364,093 430,023 27,170,123 (263,167,058) 349,801,943 (13,821,961) 333,022,975 IOI IOI IOI IOI IOI IOI 836,508,431 269,455,954 (968,770,212) 286,814,008 7,732,470 10942866 16,580,997,065 836,508,431 269,455,954 (985,621,976) 286,814,008 7,705,911 10 817 642 16,604,192,047 836,508,431 269,455,954 (1,003,171,845) 286,814,008 7,679,352 10692418 16,624,613,450 836,508,431 269,455,954 (1,020,190,315) 286,814,008 7,652,793 10567194 16,738,245,541 836,508,431 269,455,954 (1,037,787,958) 286,814,008 7,817,500 10441970 16,738,234,513 836,508,431 269,455,954 (1,054,537,355) 286,814,008 7,785,968 10316746 16,887,744,087 (123,703,496) 337,494,179 (369,002,485) (68,265,165) (157,636,913) (186,884,745) 178,194,749 798,862 218,927,644 22,618,197 23,690,425 5,017,319 8,433,604 3,348,160 424,912 27,063,196 (265,537,131) 349,801,943 (14,885,189) 257,829,404 82,512,985 836,508,431 269,455,954 (1,070,898,084) 286,814,008 7,759,409 10191522 16,859,328,003 (133,086,564) 338,046,074 (367,980,318) (68,076,065) (160,620,537) (216,775,512) 180,651,877 214,487 219,326,169 22,662,233 23,735,173 5,027,045 8,403,800 3,332,227 419,801 26,956,270 (267,906,418) 349,801,943 (15,948,417) 283,001,299 82,512,985 836,508,431 269,455,954 (1,083,931,662) 286,814,008 7,786,982 10066298 16,906,051,404 (142,469,636) 338,597,969 (366,958,151) (67,886,965) (163,604,161) (253,909,734) 184,532,691 377,935 219,694,914 22,700,407 23,773,926 5,036,771 8,373,997 3,316,294 414,690 26,849,344 (270,279,642) 349,801,943 (17,011,645) 303,188,024 822,011,827 206,799,870 (923,203,160) 259,723,942 7,812,147 11119 317 16,538,599,619 (273,239,732) 333,079,023 (377,179,821) (69,777,965) (133,793,385) (201,942,338) 176,496,559 3,215,401 215,639,090 22,267,405 23,333,559 6,215,575 8,672,034 3,475,624 465,801 27,918,607 (250,775,071) 349,801,943 (6,379,367) 246,274,196 104,241,975 822,011,827 206,799,870 (940,529,012) 259,723,942 7,785,588 11060500 16,537,851,290 836,611,115 351,866,255 (1,099,205,594) 286,814,008 7,721,409 9941074 17,063,200,036 (151,852,704) 339,149,863 (365,935,984) (67,697,865) (166,587,784) (256,179,591) 188,487,949 1,090,006 219,434,855 22,653,960 23,727,739 5,046,589 8,344,193 3,300,361 409,579 26,742,417 (272,863,816) 349,801,943 (18,074,872) 311,017,469 62,792,088 836,611,115 269,992,039 (1,119,618,360) 368,688,224 7,655,836 13 267 890 17,191,481,316 16,538,599,619 16,537,851,290 16,557,955,903 16,580,997,065 16,604,192,047 16,624,613,450 16,738,245,541 16,738,234,513 16,887,744,087 16,859,328,003 16,906,051,404 17,063,200,036 17,191,481,316 215,223,798 22,223,363 23,288,806 6,205,820 8,701,838 3,491,557 470,913 28,025,533 (247,294,422) 349,801,943 (5,316,139) 337,766,031 IOI IOI Reconciliation to Net PPE: (Re~ Liabilities) 0108155 0108301 0108620 0108640 (Non-Utility) 0121000 0121500 0121600 0122000 0122200 0122007 NetPPE PROP _PLANT_EQ.TOTAL check (26,235,987) 1,347,857,566 (176,834,258) (26,235,987) 1,352,992,615 (176,496,559) (3,215,401) (26,235,987) 1,356,436,299 (179,714,370) (3,473,824) (26,235,987) 1,359,969,630 (182,518,339) (1,535,648) (26,235,987) 1,356,272,217 (172,267,951) (1,754,740) (26,235,987) 1,361,446,465 (177,148,799) (2,300,894) (26,235,987) 1,365,931,255 (184,487,913) (2,951,918) (26,235,987) 1,356,409,100 (171,434,695) (3,370,278) (26,235,987) 1,361,936,321 (175,384,493) (542,767) (26,235,987) 1,364,397,509 (178,194,749) (798,862) (26,235,987) 1,367,350,094 (180,651,877) (214,487) (26,235,987) 1,371,452,076 (184,532,691) (377,935) (26,235,987) 1,374,240,577 (188,487,949) (1,090,006) 30,873,180 34,904 3,024,820 (9,360,478) (1,798) 30,873,180 34,904 3,024,820 (9,398,593) (3,595) 30,873,180 375,687 3,024,820 (9,436,708) (3,595) 30,873,180 386,701 3,024,820 (9,474,822) (3,595) 30,873,180 434,048 3,024,820 (9,512,937) (3,595) 30,873,180 493,733 3,024,820 (9,551,051) (3,595) 30,873,180 570,241 3,024,820 (9,589,166) (3,595) 30,873,180 595,515 3,024,820 (9,627,281) (3,595) 30,873,180 638,713 3,024,820 (9,665,395) (3,595) 30,873,180 966,084 3,024,820 (9,703,510) (3,595) 30,873,180 1,078,610 3,024,820 (9,741,927) (3,595) 30,873,180 815,589 3,373,967 (9,780,345) (3,595) 30,873,180 860,541 3,373,967 (9,885,267) (3,595) Duke Energy Carolinas DUKE ENERGY PROGRESS, LLC Item No.Sb Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request Forthetestyearended December31,2016 Beginning Ending Balance Account No. Account Title 12/31/2015 Additions Retirements Adjustments Transfers Balance ln(Out) 12/31/2016 INTANGIBLE PLANT 0301000 0302000 0303000 0106000 Organization Franchises and Consents Misc. Intangible Plant Complted constr-not classifed Total Intangible Plant 760,394.52 42,684,713.02 246,340,937 .62 96,932,811.36 386,718,856.52 10,544,322.59 24,145,376.89 (7,560,186.25) 27,129,513.23 28,807,414.11 429,536,601.17 2,113,658,731.21 291,027,171.67 204,581,418.65 48,566,589.76 934,027,035.66 586,447,150.93 4,636,652,113.16 11,954,371.11 204,950,808.90 26,204,329.13 1,591,044.94 375,998.73 144,640,449.98 (145,962,733.82) 243, 754,268.97 760,394.52 53,229,035.61 264,984,272.75 89,372,625.11 408,346,327.99 (5,502,041.76) (5,502,041.76) FOSSIL 0310000 0311000 0312000 0314000 0315000 0316000 0317000 0106000 Land &Rights Structures & Improvements Boiler Plant Equipment Turbogenerator Units Accessory Electric Equipment Misc Equipment-Power Plant Asset Retirement Obligation - Fossil Complted constr-not classifed Total Fossil (13,746.43) (465,764.02) (17,366,810.53) (6,634,483.06) (1,308,835.13) (2,162,601.68) (252,141,891.00) (1,292,548.86) (280,094,131.85) (1,292,548.86) 27,501,118.82 441,025,208.26 2,301,242, 729.58 310,597,017.74 204,863,628.46 46, 779,986.81 826,525,594.64 440,484,417.11 4,599,019, 701.42 NUCLEAR 0320000 0321000 0322000 0323000 0324000 0325000 0326000 0106000 Land &Rights Structures & Improvements Reactor Plant Equipment Turbogenerator Units Accessory Electric Equipment Misc Equip-Power Plant Asset Retirement Costs - Nuclear Complted constr-not classified Total Nuclear 68,203,940.14 2,653,494,264.11 2,157,379,637.66 709,068,560.66 717,726,203.32 395,896,995.21 876,137,782.45 996,920,899.47 8,574,828,283.02 129,022.75 29,156,767.66 70,664,998.06 5,257,740.11 27,918,723.23 40,852,961.89 (37,201,381.14) (27,846,189.46) (3,135,810.60) (15,955,703.69) (2,095,903.65) (27,685.23) 206,831,879.41 380,812,093.11 (86,234,988.54) (27,685.23) 533,133.75 (533,133.75) 68,332,962.89 2,645,955,099.15 2,200,198,446.26 711,190,490.17 729,156,089.11 434,654,053.45 876,137,782.45 1,203, 752, 778.88 8,869,377,702.36 HYDRO 0330000 0331000 0332000 0333000 0334000 0335000 0336000 0337000 0106000 Land &Rights Structures & Improvements Reservoirs, Dams, & Waterways Water Wheels, Turbines & Gen Accessory Electric Equipment Misc Equipment-Power Plant Roads, Railroads & Bridges Asset Retirement Costs - Dillsboro Complted constr-not classified Total Hydro 2,778,048.55 11,180,121.30 45,752,001.45 29,263,189.85 6,527,341.14 3,547,809.08 21,205.06 536,917.81 3,750,183.75 103,356,817.99 50,868.07 2,436.50 956,238.56 545,461.13 714,967.60 18,426,667.39 20,645,771.18 (3,656.77) (280,239.70) 813.35 (23,438.66) (105,944.98) (412,466.76) 50,868.07 (4,918.78) (214,744.55) (959,218.34) (73,958,752.61) (3,676,954.84) (4,639,713.94) (1,859,305.81) 1,292,548.86 2,828,916.62 11,178,901.03 46,428,000.31 29,809,464.33 7,218,870.08 3,441,864.10 21,205.06 536,917.81 22,176,851.14 123,640,990.48 OTHER PROD. 0340000 0341000 0342000 0343000 0344000 0345000 0346000 0347000 0106000 Land &Land Rights Structures & Improvements Fuel Holders, Producers/Access. Prime Movers Generators Accessory Electric Equipment Misc Power Plant Equipment ARO- Solar Panels Complted constr-not classified Total Other Prod. 8,706,634.50 305,925,782.24 116,625,791.81 1,528,918,241.00 280,280,911.39 289,248,992.07 40,377,135.83 12,401,317.19 410,083,001.40 2,992,567,807.43 1,572,944.95 345,220.24 31,366,572.03 471,169.81 4,269,308.85 110,481.21 2,614,573.81 180,571,989.08 221,322,259.98 (85,313,608.87) (1,916,098.04) (1,916,098.04) 1,292,548.86 9,994,264.58 305,367,884.60 116,011,793.71 1,486,326,060.42 277,075,126.36 288,878,586.98 38,628,311.23 15,015,891.00 590,654,990.48 3,127,952,909.36 TRANSMISSION 0350000 0352000 0353000 0354000 0355000 0356000 0357000 0358000 0359000 0106000 Land &Land Rights Structures & Improvements Station Equipment Towers & Fixtures Poles&Fixtures Overhead Conductors & Devices Underground Conduit Undergr Conductors & Devices Roads and Trails Complted constr-not classified Total Transmission 179,405,330.94 93,929,724.04 850,664,897 .32 61,051,517.52 558,488,625.45 387,555,569.13 5,525,535.86 226,844.60 24,698,414.12 889,317.55 28,994,943.77 51,997,029.35 53,000.68 (1,407.78) (200,711.86) (4,488,906.49) 1,369.54 (587,059.33) (281,335.08) 21,550,998.32 312,522.87 199,742,097.34 2,352,701,282.93 25,503,231.95 137,888,317.88 57,558,755.36 98,360,451.68 520,446,973.71 635,167,786.43 803,819,985.78 160,090,555.21 930,348,951.87 716,735,222.28 441,847,623.65 200,343,147.48 249,455,923.46 49,463,759.01 697,533,528.38 5,561,172,664.30 655,763.59 2,547,329.88 16,792,589.11 37,121,167.62 80,778,354.11 14,906,100.38 59,183,738.34 157,902,792.55 55,433,435.67 8,309,509.79 13,400,492.50 54,545,673.62 (83,829,840.43) 417,747,106.73 (75,139.65) (162,735.93) (3,598,678.51) (7,267,643.35) (11,710,230.28) (293,477.19) (2,462,071.41) (9,367,508.04) (36,512,157.53) (12,018,339.34) (1,744,186.42) (10,088,045.55) 7,797,283.98 122,446,427 .81 36,998,622.48 92,562,020.39 3,508,531.16 28,436,092.35 12,302,028.38 2,714,285.39 229,703,461.34 26,121,403.91 2,717,587.67 95,924,198.36 661,231,943.22 25,269,229,768.57 752,983.60 13,158,318.55 1,730,747.55 8,669.28 (571,779.19) (8,955,939.55) (9,100,694.61) (17,549,540.00) (377,233.84) 1,273,057.66 129,683.02 (7,031,513.54) (280,569.24) (23,537,572.39) (677,656.45) 9,845,271.22 33,302,911.75 1,482,602,242.83 25,269,229,768.57 1,482,602,242.83 (5,558,051.00) (2,331,454.58) (155,533.87) 132,947.17 (4,590,925.73) 5,735,716.03 (1,144,790.30) (155,533.87) (16,113.27) (2,214,620.68) 182,598,004.44 93,800,322.91 871,007,352.12 57,351,278.88 592,632,225.92 438,126,473.10 53,000.68 21,550,998.32 312,522.87 225,229,216.02 2,482,661,395.26 DISTRIBUTION 0360000 0361000 0362000 0364000 0365000 0366000 0367000 0368000 0369000 0370000 0371000 0373000 0106000 Land & Land Rights Structures and Improvements Station Equipment Poles, Towers, and Fixtures Overhead Conductors & Devices Underground Conduit Undergrd. Conductors & Devices Line Transformers Services Meters Cust Premises/Load Cntrl Devices St. Lighting & Signal System Complted constr-not classified Total Distribution 2,414,885.58 (18,319.83) 242,930.58 16,113.27 2,655,609.60 (95,300,213.20) 60,554,264.88 100, 726, 725.80 533,883,814.89 665,021,310.70 872,888,109.61 174,703,178.40 987,070,618.80 865,270,506.79 460,768,901.79 196,634,317.93 261,112,229.54 93,921,387.08 613, 719,801.22 5,886,275,167.43 GENERAL PLANT 0389000 0390000 0391000 0392000 0393000 0394000 0395000 0396000 0397000 0398000 0399199 0106000 Office Land & ROW Office Struct & Improvements Office Furniture & Equipment Transportation Equipment Stores Equipment Tools, Shop & Garage Equip Laboratory Equipment PowerOperatedEquipment Communication Equipment Miscellaneous Equipment ARO- General Asbestos Complted constr-not classified Total General Plant TOTAL ELECTRIC PLANT IN SERVICE 0102000 4,520,821.14 1,883,359.73 (97,936.47) (50,868.07) 18,319.83 (68,082,498.81) (626,498,000.79) (97,936.47) (2,197,253.61) (32,548.24) 459,308.75 7,927,620.32 126,569,190.17 29,628,675.42 75,021,149.67 3,131,297.32 32,956,913.49 7,153,874.57 2,433,716.15 207,438,946.61 25,573,430.48 2,717,587.67 105, 769,469.58 626,321,871.45 26,123,596,065.75 (626,498,000.79) (2,197,253.61) 459,308.75 26,123,596,065.75 Electric Plant Purchased TIES TO FERC (+/-for rounding) DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For the test year ended December 31, 2016 9. Item No. 9 a. Provide the journal entries related to the purchase of utility plant acquired as an operating unit or system by purchase, merger, consolidation, liquidation, or otherwise since the end of the test period in the last rate case. Also provide a schedule showing the calculation of the acquisition adjustment at the date of purchase of each item of electric plant, the amortization period, and the unamortized balance at the end of the test year. b. Provide a brief explanation of plant acquisition adjustments currently being amortized to electric operations. For 9a please see attached "DEP Rate Case El 9a Acquisition of Utility Plant" 9b - The only plant acquisition adjustment currently being amortized to electric operations is the NCEMPAAcquisition. Duke acquired NCEMPA's ownership of the Brunswick Nuclear station, the Harris Nuclear station, the Mayo Steam station and the Roxboro Steam station. DUKE ENERGY PROGRESS, LLC Item No. 9a Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For the test year ended December 31, 2016 Duke Energy Progress, Inc. Purchase of NCEMPA Ownership Share in the Duke Energy Jointly Owned Energy Generating Facilities Summary of Actual Accounting Entries as of July 31, 201S (Dollars In Thousands) Interests Purchased: Brunswick Nuclear Plant Unit 1 and 2 -18.33% Mayo Plant -16.17% Roxboro Plant Unit 4 - 12.94% Roxboro Common - 3.77% Harris Nuclear Plant-16.17% Journal Entry Number Account Account Title Debit Credit Notes Entry to Record Acquisition: 102 120.1 120.3 120.4 120.5 154 131 Cash 101 Electric Plant in Service - Asset Retirement Cost 230 Asset Retirement Obligations 128 182.3 4 Electric Plant Purchased Nuclear Fuel in Process Nuclear Fuel Assemblies in Reactor Spent Nuclear Fuel Accumulated Provision for Amortization of Nuclear Fuel Assemblies Plant Materials and Operating Supplies 131 182.3 1,111,335 26,875 114,573 51,528 (a) 109,551 55,815 1,250,575 204,016 (b) 204,016 Other Special Funds - Nuclear Decommissioning Trust Funds Other Regulatory Assets 261,077 (c) 261,077 26,000 Cash (d) 26,000 Other Regulatory Assets 128 Other Special Funds - Nuclear Decommissioning Trust Funds 131 Cash 26,000 (d) 26,000 131 Cash 236 Taxes Accrued (NC Property Tax Accrual) 923 Outside Services Employed 131 Cash 1,947 (e) 1,947 (f) Entry to Clear Acc;ount 102 Electric Plant Purthased: 101 107 114 108 102 Electric Plant in Service Construction Work In Progress Electric Plant Acquisition Adjustments Accumulated Provision for Depreciation of Electric Utility Plant Electric Plant Purchased 406 115 Amortization of Electric Plant Acquisition Adjustments Accumulated Provision for Amortization of Electric Plant Acquisition Adjustments 1,653,432 61,780 349,801 (g) 953,678 1,111,335 12,759 (h) 12,759 Reconciliation to the Purthase Price' Purchase Price Less: Nuclear Fuel Less: Amortization of Nuclear Fuel Less: Inventory Net Amount in Account 102 1,250,575 192,976 (109,551) 55,815 1,111,335 Reconciliation to the Acquisition Adjustment: Net Amount in Account 102 Less: Account 101- Seller's Original Cost (including non depreciable land) Less: Account 107 - Seller's Original Cost Less: Account 108 - Seller's Accumulated Depreciation Total Acquisition Adjustment 1,111,335 1,653,432 61,780 (953,678) 349,801 lot 3 Item No. 9a DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For the test year ended December 31, 2016 Footnotes' (a) To record the initial entry for the purchase price per Plant Instruction Pt.101-5 Electric Plant Purchased or Sold. To record asset retirement costs and obligations. The amounts are calculated under asset (b) (c) retirement obligation (ARO) rules per the FASB's ASC 410-20. To record receipt of external decommissioning fund assets from NCEMPA. The acquisition agreement provides that the seller will transfer their nuclear decommissioning trust funds (internal and external) to the buyer who will record the appropriate liability. DEP currently defers the income statement impacts for nuclear decommissioning ARO accounting, including ARO asset depreciation expense and ARO accretion expense, and contributions, gains and losses related to the external nuclear decommissioning trust fund in a Regulatory Asset account (182.3) pursuant to state commission orders (a regulatory asset account is currently being used because all of this activity is in a net debit position). Any remaining ret regulatory asset or regulatory liability balance will be relieved when the nuclear decommissioning ARO is settled. (d) To record receipt of internal decommissioning fund assets from NCEMPA. The acquisition agreement provides that the seller will transfer their nuclear decommissioning trust funds (the external funds and internal funds of $26 million) to the buyer. The credit for the entry to record the receipt of the cash from the seller is to a regulatory asset account pursuant to the use of this regulatory asset account as discussed in note (c) above. The buyer will then transfer the $26 million to the external nuclear decommissioning trust. (e) To record NCEMPA 2015 property tax prorations per closing statement. (f) To record payment of fees to Chicago title . (g) To clear electric plant purchased and record the original cost, acquisition adjustments, and accumulated depreciation. (h) Amounts above reflect the annual amortization amount based on the weighted average remaining life of the plants (calculated as a 27 .42 year amortization period as of 7/31/15). In a contemporaneous filing submitted with the Section 203 application, DEP is seeking Commission authorization under Section 205 to allow DEP to recover from DEP's wholesale customers an allocated share of the acquisition adjustment over the remaining useful lives of the generating assets. 2of 3 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 Item No. 9a - 2 NCUC Form E-1 Data Request For the test year ended December 31,2016 PGN_CAROLINAS.P GN_FERC 2016 Dec Actuals Periodic YTD Accounts: Descriptions: 0114000 0115000 Note 1 0114000 - Elec Plant Acquisition Adj 0115000 - Ace Prov Pit Acquis Adj Unamortized Balance 349,801,943.42 (18,074,872.43) 331,727,070.99 Note 1 - Duke Energy Progress' Plant acquisition adjustments currently being amortized to electric plant are: NCEMPA Acquisition - Duke acquired NCEMPA's ownership of Brunswick, Harris, Mayo and Roxboro. The original acquisition adjustment amount was $349,801,943.42, amortizing over 27 years starting August 2015. The monthly amortization amount of $1,063,227.79 is being amortized to Account 406505Acquisition Purchase Adjustment. DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For the test year ended December 31, 2016 10. Item No.10 Provide the detail workpapers showing calculations supporting all accounting, pro forma, end-of-period, and proposed rate adjustments in the rate application to revenue, expense, investment, and reserve accounts for the test year and a complete detailed narrative explanation of each adjustment, including the reason why each adjustment is required. Explain all components used in each calculation. Index each calculation to the accounting, pro forma, end-of-period, and proposed rate adjustment which it supports. Please see attached DEP pro forma adjustments. NCOlOO -Annualize retail revenues for current rates DEP.xlsx NC0200 -Adjust other revenue DEP.xlsx NC0300 - Normalize for weather-DEP.xlsx NC0400 -Annualize revenues for customer growth-DEP.xlsx NC0500 - Eliminate unbilled revenues-DEP.xlsx NC0600 - Update fuel costs to approved rate-DEP.xlsx NC0700 - Eliminate costs recovered through non-fuel riders-DEP.xlsx NC0800 -Annualize Depreciation on year end plant balances DEP.xlsx NC0900 -Annualize property taxes on year end plant balances DEP.xlsx NCIOOO -Adjust for new depreciation rates DEP.xlsx NCI 100 -Adjust for post test year additions to plant in service DEP.xlsx NC1200 -Adjust for Asheville base load CWIP DEP.xlsx NC1300 -Adjust for Transmission Merger Mitigation Project DEP.xlsx NC1400-Adjust nuclear decommissioning expense.xlsx NC1500 -Adjust reserve for end oflife nuclear costs DEP.xlsx NC1600 -Adjust coal inventory-DEP.xlsx NCI 700 -Adjust for Harris COLA DEP.xlsx NC1800 -Amortize deferred environmental costs.xlsx NC1900-Adjust for ongoing environmental costs.xlsx NC2000 - Normalize for storm costs DEP.xlsx NC2100 -Annualize O&M non-labor expenses DEP.xlsx NC2200 - Normalize O&M labor expenses DEP.xlsx NC2300 - Update benefits costs.xlsx NC2400 - Levelize nuclear refueling outage costs.xlsx NC2500 -Amortize rate case costs DEP.xlsx NC2600 -Adjust aviation expenses DEP.xlsx NC2700 -Adjust for change in NCUC reg fee-DEP.xlsx NC2800 -Adjust purchased power DEP.xlsx NC2900 -Adjust O&M for executive compensation-DEP.xlsx NC3000 -Adjust for Customer Connect - DEP.xlsx NC3100-Adjust for Long Term Service Agreements DEP.xlsx NC3200 -Adjust for Defened Tax Liability DEP.xlsx NC3300 -Adjust for tax rate change.xlsx NC3400 - Synchronize interest expense with end of period rate base DEP.xlsx NC3500 -Adjust cash working capital for present revenue annualized and proposed revenue-DEP.xlsx Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Annualize Retail revenues for current rates For the test period ended December 31, 2016 NC-0100 Narrative E-1 Item 10 Adjustments Requirement Provide the detail work papers showing calculations supporting all accounting, proforma, end-of-period, and proposed rate adjustments in the rate application to revenue, expense, investment, and reserve accounts for the test year and ? complete detailed narrative explanation of each adjustment. including the reason why each adjustment!?. required. Explain all components used in each calculation. Index each calculation to the accounting, proforma, end-of-period, and proposed rate adjustment which it supports. Detailed Narrative Explanation of Adjustment This pro forma represents the additional North Carolina retail revenues, uncollectible expense, and regulatory fees required to reflect the annualization of rates in effect on December, 2016. The pro forma also removes Demand Side ManagemenUEnergy Efficiency (DSM/EE) and the Joint Agency Acquisition Rider (JAAR) from the annualized revenues. In addition, fuel is neutralized in the case through this adjustment and the fuel pro forma adjustment. The impact to O&M expenses for uncollectible expense and the NCUC fee is determined by multiplying the impact to revenue by the uncollectible rate and the NCUC assessment rate. The impact to income taxes is determined by multiplying taxable income by the statutory tax rate. Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Annualize Retail revenues for current rates For the test period ended December 31, 2016 (Dollars in thousands) Line No. 1 2 Description Pro Formas Impacting Income Statement Line Items 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Electric operating revenue Electric operating expenses: Operation and maintenance Fuel used in electric generation Purchased power and net interchange Wages, benefits, materials, etc. Depreciation and amortization General taxes Interest on customer deposits Income taxes Amortization of investment tax credit NC-0101 NC-0101 NC-0101 Total electric operating expenses Sum L8 through L15 Operating income L4 - L17 Notes: Revenue: positive number increases revenue I negative number decreases revenue Expense: positive number increases expense I negative number decreases expense Total NC Retail (368,354) (136,075) (137,254) $231,100} Jim mm mm? NC-0101 Page 1of1 Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Annualize Retail revenues for current rates For the test period ended December 31, 2016 (Dollars in thousands) Line No. Description 1 Revenues to be Collected in Proposed Rates 2 Retail Sales (Billed Revenues) Per Book Total NC Retail Col. (a) $ 3,342,615 [1] Present Total NC Retail Col. (b) $ 2,974,261 [1] Present vs. Per Book Col. (c) $ (368,354) [2] [3] 0.0018 0.0014 (1,179) 3 4 5 6 Uncollectible (booked to O&M) NCUC Fee (booked to O&M) Impact to O&M - NCUC fee (L2 x L4) $ 7 8 Taxable income (L2 - L 10) 9 Statutory tax rate 10 Impact to income taxes (L 12 x L 13) 11 12 Impact to operating income (L 12 - L 14) [1] [2] [3] [4] NC-0102 - Billed Revenues and Present Revenues Annualized, Line 43 NC-0105 Uncollectible rate NC-0103 rate effective July 1, 2016 NC-0104 - 2017 Tax Rate, Line 10 Note: some totals may not foot or compute due to rounding. $ (367,175) 37.0599% (136,075) $ (231,100) $ [4] Duke Energy Progress, LLC North Carolina Revenue Annualization Adjustment NC-0102 Page 1 of 1 NCUC Docket No. E-2, Sub 1142 Twelve Months Ended December 31, 2016 (a) Rate Class/Schedule Residential RES R-TOUD R-TOU (b) (c) (d) (e) NliUli Utlllty Per Book Test Year Revenues (As Billed) Current Revenue, Excluding DSM and EE Riders Revenue Annualization & Rider Adjustment Per C/M Report RMC1Y Per Tariff Worksheets (c)-(b) assessment fee and Uncollectible $1,645,627,986 $1,597,059,204 $43,409,442 $5,159,340 $1,436,239,770 $1,394,823,325 $36,915, 145 $4,501,301 {$209,388,216) ($202,235,880) ($6,494,297) ($658,039) {$670,194) ($647,302) ($20,786) ($2,106) $210,862,429 $210,487,337 $375,093 $187,256,112 $186,918,871 $337,241 ($23,606,317) ($23,568,466) ($37,851) ($75,557) ($75,436) ($121) $3,136,646 $2,791,191 ($345,456) ($1, 106) Medium General Service MGS SGS-TOU GS-TES APH-TES CH-TOUE CSE CSG $876,347,348 $262,945,218 $610,468,503 $1,445,656 $136,086 $1, 160,654 $187,389 $3,843 $793,883,443 $236,171,572 $555,039,956 $1,276,047 $129,700 $1,085,946 $176,524 $3,698 ($82,463,905) ($26, 773,646) ($55,428,54 7) ($169,609) ($6,386) ($74,708) ($10,865) ($145) ($263,944) ($85,695) ($177,412) ($543) ($20) ($239) ($35) ($0) 21 Large General Service $508,129,399 $463,765,867 {$44,363,532) {$141,996) 22 LGS LGS-TOU $89,501,829 $418,627,570 $80,964,556 $382,801,311 ($8,537,273) ($35,826,259) ($27,325) ($114,670) $508,129,399 $89,400,264 $463,765,867 $80,870,253 ($44,363,532) ($8,530,011) ($141,996) ($27,302) 1 6 Small General Service (SGS) SGS SGS-TOUE 10 SGS-TOU Constant Load (SGS-TOU-CLR) 11 12 13 14 15 16 17 18 19 20 23 24 25 26 Large General Service breaking out RTP LGS excl RTP 27 LGS-TOU excl RTP $115,886,959 $105,518,843 ($10,368, 115) ($33, 185) 28 LGS-RTP, LGS-TOU RTP $302,842, 177 $277 ,376, 771 ($25,465,406) ($81,508) $5,775,485 $5,217, 167 ($558,318) ($1,787) $516,093 $481,724 $34,369 $450,789 $418,485 $32,304 {$65,304) ($63,239) ($2,065) {$209) ($202) ($7) $92,013,003 $65,528,071 $20,687,764 $5,797,169 $84,473,519 $59,851,731 $19, 129,508 $5,492,280 ($7,539,484) ($5,676,340) ($1,558,256) ($304,889) ($24, 132) ($18, 168) ($4,988) ($976) $207,015 $183,634 ($23,381) ($75) $3,342,615,406 $2,974,261,493 ($368,353,912) ($1, 179,000) 29 30 Seasonal and Intermittent Service 31 32 33 34 Traffic Signal Service (TSS) TSS TFS 35 36 37 38 39 Outdoor Lighting ALS SLS SLR 40 41 Sports Field Lighting Service 42 43 North Carolina Retail Tariff Revenue Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Annualize Retail revenues for current rates For the test period ended December 31, 2016 NC-0103 Page 1 of 1 NCUC Statutory Regulatory Fee Percentage Rate EffECTlVE JUlY 1, 2016 of GJ':'L 62-302 ~v!i:lea IN!t the amount ill Ile rttM\!M may not~~ omH'!alf of th(R) commmron l*M the Pub!ie Staff aa r~ in thl!I c;iru1m(R)d fow !f111:aJPY, Pumu!*nt wG.S, 62~302(b}(3), the Commlssron has rcvklwed fue ntifl'mted coait of op!(R)fating U'ft!J Comm!ssh:in and the Pubic: Staff for tl'llrl l'M'l'Ml ff$(t!ill !f11!:!1lt', iool<Ws: :tt That the Chief C!etl< shall urw tills Order on a~! utifil~s regulated by the Crmm!sus!ort OJf July, :ces Other Taxes PAYROLL TAX 0406960 Adjustment to Remove DSM/EEIDSDR Other Taxes RATE BASE Reg Assets NC DSM/EE DSDR DEFERRAL SC DSM/EE DSDR DEFERRAL 162361 162361 y 1,110,238 Accounting (111023a)l-Row35 y 289,895 Accounting (269 695)1 - Row 39 N N Total Reg Assets Trial Balance Trial Balance 262,803,224 Sum of Raws 44 + 45 I Adjustment to Remove DSM Reg Assets - DIA NCR Adjustment to Remove DSM Reg Assets - DIA SCR ADIT NC DSM/EE- ADIT SC DSM/EE - ADIT 228,555,643 34,247,581 (228,555,643)1 - Sum of Rows 44 I 134247581\l -SumafRows45 y (84,702,527) -L 44 x 37.059915% (12 692124) -L 45x 37.059915% y (97,394,651) Sum of Raws 52- 53 TotalADIT Adjustment to Remove DSM ADIT - D/A NCR Adjustment to Remove DSM ADIT - D/A SCR I I 64 702 527 12,692,124 I - Row 52 I -Row 53 Notes: DSM/EE revenues have been removed in NC - 1000 "Annualize revenues for current rates", so there is no need to remove the revenues separately in this adjustment. DSDR Plant Assets and ADIT are removed in Adjustment NC - 0703 Duke Energy Progress, LLC Docket No. E-2, Sub 1142 NC-0703 Page 1of1 Eliminate costs recovered through non-fuel riders For the test period ended December 31, 2016 Line No. 1 2 3 4 5 6 DSDR Plant Gross Plant balances December 2016: Misc Intangible plant Transmission Station Equip Transmission Distribution Station Equip Distribution Poles, Towe rs and Fixtures Distribution Overhead conductors and devices 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 Total Carolinas Description Distribution Underground conduit Distribution Underground conduit and devices Distribution Line transformers Distribution Services Distribution Meters Distribution Installs on customer premises Distribution Street lighting and signal systems Total Distribution Plant General Plant - Structures and Improvements General Plant - Office furniture and equipment General Plant - Tcols, shop and garage equipmE General Plant - Communication equipment Total General Plant Total Gross Plant in Service December 2016 Accumulated Depreciation December 2016 Misc Intangible plant Transmission Station Equip Total NC Retail 66.4632% [2] 59.1442% $ 21,828,134 359,008 Account 303 353 361 362 364 365 366 367 368 369 370 371 373 390 391 394 397 $ 32,842,428 [1] 607,005 9,396 35,895,818 20,096,154 48,366,334 1,254,345 1,146,702 52,175,620 1,300,013 4,534,774 207,124 95,218 165,081,498 115,689 2,378,696 (8,272) 14,667,883 17,153,997 86.6059% 142,970,348 72.1559% 12,377,616 (sum Lines 3, 4, 5, 16 and 21) 303 353 361 362 364 365 366 367 368 369 370 371 373 Transmission Distribution Station Equip Distribution Poles, Towe rs and Fixtures Distribution Overhead conductors and devices Distribution Underground conduit Distribution Underground conduit and devices Distribution Line transformers Distribution Services Distribution Meters Distribution Installs on customer premises Distribution Street lighting and signal systems Total Distribution Plant General Plant - Structures and Improvements 390 General Plant - Office furniture and equipment 391 General Plant - Tcols, shop and garage equipmE 394 General Plant - Communication equipment 397 Total General Plant (sum Lines 25, 26, 38 and 43) Total Accumulated Depreciation - Dec 2016 DSDR ADIT - December 2016 Intangible Plant related DSDR ADIT Transmission Plant related DSDR ADIT Distribution Plant related DSDR ADIT General Plant related DSDR ADIT Total DSDR ADIT NC Retail Allocation $ 28,649, 782 [1] 77,944 189 3,624,135 6,947,099 12,720,236 151,324 168,773 8,476,931 148,265 1,353,638 34,541 13,262 33,638,393 11,354 714,920 13 2,914,969 3,641,255 $ 66,007,374 (7,327,845) (135,436) (36,833, 196) (3,827,422) (48, 123,898) 66.4632% [2] 59.1442% 86.6059% 72.1559% [4] [4] [4] [4] [3] 66.4632% 59.1442% 86.6059% 72.1559% [4] [4] [4] [4] $ 19,041,567 46,100 $ $ $ $ $ $ $ $ $ $ $ $ $ 29, 132,839 $ $ $ $ $ 2,627,379 $ 50,847,884 $ (4,870,321) (80,102) $ $ (31,899,728) $ (2,761,709) $(39,611,861) [1] Accounting Smartgrid Depreciation Schedule [2] Adjustments for Intangible Plant are based on total gross plant (PTDG), for Transmission Plant at Transmission peaks (DTALL), Distribution plant at total distribution plant and General plant at total general plant. [3]Tax [4] DSDR ADIT is allocated across plant categories based on gross plant: Intangible plant 15% Line 3 /Line 22 Transmission Plant 0% Line 4 /Line 22 Distribution Plant 77% Line 16 I Line 22 General Plant 8% Line21 I Line 22 100% Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Annualize Depreciation on year end plant balances For the test period ended December 31, 2016 NC-0800 Narrative E-1 Item 10 Adjustments Requirement Provide the detail work papers showing calculations supporting all accounting, pro forma, end-of-period, and proposed rate adjustments in the rate application to revenue, expense, investment, and reserve accounts for the test year and ~ complete detailed narrative explanation Qf each adjustment. including the reason why each adjustment]? required. Explain all components used in each calculation. Index each calculation to the accounting, proforma, end-of-period, and proposed rate adjustment which it supports. Detailed Narrative Explanation of Adjustment This pro-forma annualizes depreciation expense, income taxes, amortization of investment tax credit and accumulated depreciation to reflect a full year's level of depreciation on plant in service as of the end of the test period. The impact to depreciation expense is determined by multiplying current depreciation rates times the level of plant in service as of the end of the test period and then subtracting actual depreciation expense booked during the test period. The impact to income taxes is determined by multiplying taxable income by the statutory tax rate. The impact to amortization of investment tax credit reflects the difference between actual amortization booked during the test period and the new annual level of amortization based on the new depreciation study. The impact to accumulated depreciation reflects one year's worth of the depreciation expense adjustment. Duke Energy Progress, LLC NC-0800 Docket No. E-2, Sub 1142 Annualize Depreciation on year end plant balances For the test period ended December 31, 2016 (Dollars in thousands) Line No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 Description Total NC Retail Source Pro Formas lm(!acting Income Statement Line Items $ Electric operating revenue Electric operating expenses: Operation and maintenance Fuel used in electric generation Purchased power and net interchange Wages, benefits, materials, etc. Depreciation and amortization General taxes Interest on customer deposits Income taxes Amortization of investment tax credit NC-0801 15,802 NC-0801 NC-0801 (5,856) 1,230 Total electric operating expenses Sum L8 through L 15 11, 176 Operating income L4 - L 17 $ (11, 176) Notes: Revenue: positive number increases revenue I negative number decreases revenue Expense: positive number increases expense I negative number decreases expense Pro Formas lm(!acting Rate Base Line Items Electric plant in service Accumulated depreciation and amortization Electric plant in service, net $ - Line 11 Sum L28 through L29 (15,802) (15,802) Add: Materials and supplies Working capital investment Plant held for future use Less: Accumulated deferred taxes Operating reserves Customer deposits Construction work in progress Total impact to rate base Sum L30 through L42 Note: Rate Base: positive number increases rate base I negative number decreases rate base $ (15,802) NC-0801 Page 1of1 Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Annualize Depreciation on year end plant balances For the test period ended December 31, 2016 (Dollars in thousands) Line No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Total Carolinas Depreciation and amortization Production (NC-0802 Col E; Lines 4, 8., 15, 21) - L3 Production Direct assigned to SC (NC-0802 Col E; Line 20) Transmission (NC-0802 Col E; Line 23 and Line 24) Transmission Direct assigned to SC (NC-0802 Col E; Line 25) Transmission Direct assigned to Wholesale (NC-0802 Col E; Line 26) Distribution (NC-0802 Col E; Line 29 and Line 30) Distribution Direct assigned to SC (NC-0802 Col E; Line 31) Distribution Direct assigned to Wholesale (NC-0802 Col E; Line 32) General (NC-0802 Col E; L46 less L11) General Direct assigned to Wholesale (NC-0802 Col E; Line 44) Intangible (NC-0802 Col E; L52) Impact to depreciation and amortization (Sum L2 through L 12) $ $ Amortization of investment tax credit Investment tax credit 2016 Estimated annual investment tax credit Impact to amortization of investment tax credit-variance (-L20 + L21) Impact to operating income (-L3 - L 17 - L22) [1] [2] [3] [4] [5] [6] [7] [8] [9] Allocation Factor - DPALL Allocation Factor - DTALL Allocation Factor - RB PLT 0 DI Allocation Factor - RB PLT 0 GN Allocation Factor - RB PLT 0 IT NC-0104 - 2017 Composite tax rate, Line 10 NC-0803 E-1 Item 2 - Working Trial Balance - Account 0411410 NC-0803 NC-0803 26,634 60.6008% 0.0000% 59.1442% 0.0000% 0.0000% 86.6059% 0.0000% 0.0000% 72.1559% 0.0000% 66.4632% [1] Total NC Retail $ 609 [3] 5,062 [4] (250) [5] $ (9,871) $ $ (5,305) [7] (3,380) [8] 1,925 $ $ (18,687) 15,802 37.0599% [6] $ $ 10,381 [2] 37. 0599% [6] Statutory tax rate Impact to income taxes (-L 13xL15) 17,130 2,825 1,029 147 (3) 5,845 9 (2) (346) NC Retail Allocation $ (5,856) 1,230 [9] (11, 176) Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Annualize Depreciation on year end plant balances For the test period ended December 31, 2016 NC-0802 Page 1of1 Adjustment of Depreciation Expense to Reflect Plant in Service for 12 Months Ended December 31 2016 Line No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 Function STEAM: r11 STEAM PLANT (excluding Clean Air Facilities 312.10) LAND RIGHTS - STEAM NUCLEAR: r11 NUCLEAR PLANT LAND RIGHTS - NUCLEAR HYDRO: r1l HYDRAULIC PLANT LAND RIGHTS - HYDRO OTHER PRODUCTION: r11 OTHER (CT's) OTHER (CT's Land) OTHER (SOLAR) SC RETAIL DEFERRALS (A) Plant in Service 12/31/2016 (B) De pr Rate DISTRIBUTION: r11 DISTRIBUTION OTHER DISTRIBUTION RIGHT OF WAY SC RETAIL DEFERRALS OATTCONTRA GENERAL: r11 LAND AND LAND RIGHTS STRUCTURES AND IMPROVEMENTS FURNITURE AND EQPMT TRANSPORTATION EQUIPMENT (2) STORES EQUIPMENT TOOLS, SHOPS & GARAGE EQPMT LABORATORY EQUIPMENT POWER OPERATED EQUIPMENT COMMUNICATION EQUIPMENT OATT CONTRA- COMM EQUIP MISCELLANEOUS EQUIPMENT INTANGIBLE (3) ORGANIZATION FRANCHISES AND CONSENTS MISC INTANGIBLE PLT TOTAL PLANT-IN-SERVICE (D) Actual 12ME Depr Booked (E) Difference 3, 764,308,035 28,082,323 3, 792,390,358 3.12% 3.12% 117,378,653 875,663 118,254,316 99,871,038 292,808 100,163,846 17,507,615 582,855 18,090,470 8,847,324,753 74,485,293 8,921,810,045 2.00% 2.00% 176,698, 770 1,487,620 178,186,390 179,784,216 647,914 180,432,129 (3,085,446) 839,706 (2,245,740) 120,275,156 2,828,917 123, 104,073 2.87% 2.87% 3,451,656 81,184 3,532,840 3,258,920 4,115 3,263,035 192,736 77,069 269,805 2,808,333,606 9,994,265 183,881,057 2.44% 2.44% 4.00% 2.44% 68,616,015 244,190 7,355,242 3,002,208,928 TRANSMISSION: r11 TRANSMISSION OTHER TRANSMISSION RIGHT OF WAY SC RETAIL DEFERRALS OATTCONTRA (C) Current Rates Calculated Accrual 2,289, 177,578 182,889,827 (4,951,116) 2,467, 116,288 5,822,451,714 63,949,951 (123,685) 5,886,277,980 7,962,878 130,643,426 55,836,781 101,478,640 3,592,862 49,878,447 7,231,553 3,369,545 226,284,746 (133,505) 26 873 774 613,019,147 760,395 55,152,326 352 433 607 408,346,328 25,214273,147 76,215,447 1.67% 1.67% 1.67% 1.67% 3.57% 3.57% 3.57% 3.57% 0.00% 2.42% 6.56% 11.58% 6.71% 2.84% 9.15% 16.91% 2.15% 2.15% 2.87% 38,281,917 3,058,467 (82,798) 41,257,586 68,201,866 127,041 6,871,416 (2,825, 129) 72,375,194 414,149 117,149 483,826 2,825,129 3,840,253 38,165,138 2,146,113 (146,973) (79,752) 40,084,526 116,779 912,354 146,973 (3,046) 1,173,060 207,721,787 2,281,478 203,768,202 389,996 3,953,585 1,891,483 (4,413) 209,998,853 (9,027) (2,671) 204, 146,499 9,027 (1,741) 5,852,354 3,165,490 3,662,725 36,534 3,090,996 3,780,053 (36,534) 74,494 (117,328) 241,178 1,414,104 661,477 569,810 4,857,428 (2,866) 770,337 15,339,684 253,759 1,236,676 915,455 478,447 5,107,939 (2,866) 788,957 15,685,952 (12,581) 177,428 (253,978) 91,363 (250,511) 2,880,053 28 191 384 31,071,436 2,880,053 28 191 384 31,071,436 673 856 553 647 222,620 (18,621) (346,268) 0.00% various 20.00% 26 633 934 Note 1: The amounts above are shown at Gross Plant in Service Costs. Contra AFUDC has been added back to our PowerPlant dollars through the on top in account 101000 at C and the Contra AFUDC depreciation expense that is calculated in 403002 is offset by including our Contra AFUDC Offset depreciation groups at E. Note 2: Depreciation expense on Vehicles and Construction Equipment are recorded to 803 accounts, rather than 403/404 accounts. Therefore the depreciation expense associated with these assets is excluded from the schedule above. Note 3: Note 4: Note 5: Note 6: column Totals may not foot due to rounding Some assets within Misc Intangible Pit are fully amortized and no longer accrue any expense Land, Land Rights and Rights of Way noted separately from the rest of Electric Plant in Service above. Land is not a depreciable asset while Land Rights and RIW are depreciable. The calculated accrual column above assumes 12 months of depreciation. If any assets were added during the 12 month period, depreciation would be calculated based on the in service date in the actual 12me depr booked above. Source: Duke Energy Asset Accounting NC-0803 Page 1 of 1 Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Annualize Depreciation on year end plant balances For the test period ended December 31, 2016 Line No. Amortization of investment tax credit 1 Production-Gross 2 Transmission 3 Distribution 4 General 5 6 Total [L 1 through L4) Information provided by Duke Energy Tax Department A B B-A Test Year Adjusted Adjustment Factor NC Retail (3,969,039) (2,586,089) 1,382,950 60.60% 838,078 (533,396) (278,399) 254,997 59.14% 150,816 (658, 770) (420,437) 238,333 86.61 % 206,411 __(~1_43~,_68_8~)_ _~(9_5~,4_4_7~)_ _4_8~,2_4_1 72.16% 34,809 (5,304,893) (3,380,371) 1,924,522 1 230 114 Duke Energy Progress Docket No. E-2, Sub 1142 Annualize property taxes on year end plant balances For the test period ended December 31, 2016 (Dollars in thousands) NC-0900 Narrative E-1 Item 10 Adjustments Requirement Provide the detail work papers showing calculations supporting all accounting, pro forma, end-of-period, and proposed rate adjustments in the rate application to revenue, expense, investment, and reserve accounts for the test year and ~ complete detailed narrative explanation of each adjustment. including the reason why each adjustment 1? required. Explain all components used in each calculation. Index each calculation to the accounting, proforma, end-of-period, and proposed rate adjustment which it supports. Detailed Narrative Explanation of Adjustment This pro-forma annualizes general taxes and income taxes to reflect an annual level of expense for property taxes based on the end of the test period level of plant investment. The impact to general taxes is determined by calculating an annual level of property tax expense equal to estimated annualized property tax less property taxes booked during the test period. The impact to income taxes was determined by multiplying taxable income by the tax rate. Duke Energy Progress Docket No. E-2, Sub 1142 Annualize property taxes on year end plant balances For the test period ended December 31, 2016 (Dollars in thousands) Line No. Description NC-0900 Total NC Retail Source 1 2 3 4 5 6 7 8 9 10 11 Pro Formas Impacting Income Statement Line Items Electric operating revenue Electric operating expenses: Operation and maintenance Fuel used in electric generation Purchased power and net interchange Wages, benefits, materials, etc. Depreciation and amortization General taxes Interest on customer deposits Income taxes Amortization of investment tax credit $ 12 NC-901 L41 13 NC-901 L44 14 15 16 Sum L8 through L 15 17 Total electric operating expenses 18 L4 - L 17 19 Operating income $ 20 21 Notes: Revenue: positive number increases revenue I negative number decreases revenue 22 23 Expense: positive number increases expense I negative number decreases expense 2,669 (989) 1,680 (1,680) Duke Energy Progress Docket No. E-2, Sub 1142 Annualize property taxes on year end plant balances For the test period ended December 31, 2016 NC-0901 Page 1 of 1 Line No. Description NC 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 12/31/2015 System Balances Subject to Pro(;!erty Tax EPIS (101, 102 and 106 excl 101.1) Less: Asset Retirement Obligation Prop Under Capital Lease (101.1) PHFFU (105) CWIP (107) Acquisition Adj (114) Sub-Total Utility Plant (Sume L 1 through L 6) 25, 125, 116,330 (1,825,820,640) 144, 114,838 31,135,166 1,108,311,519 349,801,943 24,932,659, 156 Net Nuclear Fuel (120.1-5) Fuel Stock (151) Materials & Supplies (154) M & S Burdens (163) Taxable Plant (L7throughL12) 722,029,973 312, 175,426 739,816,167 36,190,599 26,742,871,321 2016 Property Tax Expense Paid Average Property Tax Rate (L 15/L 13) 12/31/2016 Balances EPIS (101, 102 and 106 excl 101.1) Less: Asset Retirement Obligation Prop Under Capital Lease (101.1) Held for Future Use (105) CWIP (107) Acquisition Adj (114) Sub-Total Utility Plant (L 19 through L24) 25, 125, 116,330 (1,825,820,640) 144, 114,838 31,135,166 349,801,943 23,824,347,637 124,974,870 [2] 25,981,678,481 (1,720,933,774) 141,917,585 43,226,314 1,303,611,534 349,801,943 26,099,302,083 25,981,678,481 (1,720,933,774) 141,917,585 43,226,314 [3] [3] [3] [3] [3] [3] 349,801,943 24, 795,690,549 131,887,044 Test Year Property Tax Expense (excluding deferrals) Property Tax Expense Adjustment (L34-L36) 59,374,439 2,625,707 34,023,477 1,389,753 [1] [2] [3] [4] [5] [6] 12/31/15 FERC Form 1/ Balance Sheet 2016 Tax Year Property Tax Paid in 2016 12/31/16 FERC Form 1 I Balance Sheet Line 36 NC Allocation Factor PTDG NC-0104 Composite Tax Rate, Line 10 4,015,460 66.46% 2,668,804 37.06% (989,057) (1,679,747} [3] [3] [3] [3] 24,927,577,593 0.14206% 35,413,230 $ $ [1] [1] [1] [1] 34,023,477 0.14206% 0.22202% 62,000,146 Statutory tax rate Impact to income tax (-L41 x L54) Impact to operating income (-L41 - L44) [1] [1] [1] [1] [1] [1] 23,949,322,507 Average Property Tax Rate (L 16) Annualized Property Tax Expense (L31 X L33) Total Property Tax Adjustment (L37 NC plus SC) NC Retail Allocation factor NC Property Tax Adjusment (L39 X L40) Reference 59,374,439 0.22202% 750,406,301 262,286,714 780,734,297 32,787,942 27,925,517,337 Net Nuclear Fuel (120.1-5) Fuel Stock (151) Materials & Supplies (154) M & S Burdens (163) Property Subject to Property Tax (L25 through L30) SC [4] [5] [6] Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Adjust for new depreciation rates For the test period ended December 31, 2016 NC-1000 Narrative E-1 Item 10 Adjustments Requirement Provide the detail work papers showing calculations supporting all accounting, pro forma, end-of-period, and proposed rate adjustments in the rate application to revenue, expense, investment, and reserve accounts for the test year and ~ complete detailed narrative explanation Qf each adjustment. including the reason why each adjustment]? required. Explain all components used in each calculation. Index each calculation to the accounting, proforma, end-of-period, and proposed rate adjustment which it supports. Detailed Narrative Explanation of Adjustment This pro forma adjusts depreciation expense and the reserve for depreciation to reflect the updated depreciation rates resulting from a new depreciation study. Duke Energy Progress, LLC NC-1000 Docket No. E-2, Sub 1142 Adjust for new depreciation rates For the test period ended December 31, 2016 (Dollars in thousands) Line No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 Description Total NC Retail Source Pro Formas lm(!acting Income Statement Line Items $ Electric operating revenue Electric operating expenses: Operation and maintenance Fuel used in electric generation Purchased power and net interchange Wages, benefits, materials, etc. Depreciation and amortization General taxes Interest on customer deposits Income taxes Amortization of investment tax credit NC-1001 67,642 NC-1001 (25,068) Total electric operating expenses Sum LB through L 15 Operating income L4 - L 17 42,574 $ (42,574) Notes: Revenue: positive number increases revenue I negative number decreases revenue Expense: positive number increases expense I negative number decreases expense Pro Formas lm(!acting Rate Base Line Items Electric plant in service Accumulated depreciation and amortization Electric plant in service, net $ NC-1001 Sum L28 through L29 (67,642) (67,642) Add: Materials and supplies Working capital investment Plant held for future use Less: Accumulated deferred taxes Operating reserves Customer deposits Construction work in progress Total impact to rate base Sum L30 through L42 Note: Rate Base: positive number increases rate base I negative number decreases rate base $ (67,642) Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Adjust for new depreciation rates For the test period ended December 31, 2016 (Dollars in thousands) Line No. 2 3 4 5 6 7 B 9 10 11 12 13 14 15 16 17 1B 19 20 21 NC-1001 Page 1of1 Total Carolinas Description Change in Depreciation and amortization (See NC-1002) Production Transmission Distribution General General Plant Amortization Impact to depreciation and amortization (Sum L2 through L6) $ $ Statutory tax rate 162,952 4,7B9 (57,122) 4,350 17,173 132,142 NC Retail Allocation 60.600B% 59.1442% B6.6059% 72.1559% 72.1559% [1] [2] [3] [4] [4] Total NC Retail $ $ 37.0599% [5] 9B,750 2,B33 (49,471) 3,139 12,391 67,642 37.0599% [5] Impact to income taxes (-LB x L10) $ (4B,972) $ (25,06B) Impact to operating income (-LB - L12 - L17) $ (B3,170) $ (42,574) $ (162,952) {4,7B9) 57,122 (4,350) (17,173) (132,142) $ (9B,750) {2,B33) 49,471 (3,139) (12,391) (67,642) Depreciation Reserve Adjustment Production Transmission Distribution General General Plant Amortization Impact to Depreciation reserve (Sum L16 through L20) [1] [2] [3] [4] [5] Allocation Factor- DPALL Allocation Factor - DTALL Allocation Factor - RB PLT 0 DI Allocation Factor - RB PLT 0 GN NC-0104 - 2017 Composite tax rate, Line 10 $ 60.600B% 59.1442% B6.6059% 72.1559% 72.1559% [1] [2] [3] [4] $ DUKE ENERGY PROGRESS COMPARISON OF CURRENT AND PROPOSED DEPRECIATION PARAMETERS, RATES AND ACCRUALS AS OF DECEMBER 31, 2016 VERSION 7 ORIGINAL COST ASOF ACCOUNT (1) DECEMBER 31, 2016 (2) CURRENT NET SALVAGE ANNUAL ACCRUAL PERCENT AMOUNT ~ (6) (6) (7) PROBABLE RETIREMENT DATE (3) SURVIVOR CURVE (4) 06-2031 06-2033 06-2035 06-2032 06-2032 06-2035 06-2035 06-2035 125-L1.5 125-L1.5 125-L1.5 125-L1.5 125-L1.5 125-L1.5 125-L1.5 125-L1.5 (7.45) (7.39) (6.22) (9.18) (9.16) (9.05) (9.24) (9.39) 06-2031 06-2033 06-2035 06-2032 06-2032 06-2035 06-2035 06-2035 75-L0.5 75-L0.5 75-L0.5 75-L0.5 75-L0.5 75-L0.5 75-L0.5 75-L0.5 (7.64) (7.65) (6.58) (9.60) (9.60) (9.60) (9.60) (9.59) (10) (10) (10) (10) (10) (10) (10) 19.16 7,803,914 1.77 1.28 2.91 3.79 2.37 3.09 0.45 3.26 331,619 178,202 3,181,804 1,726,200 1,050,080 2,216,629 280,521 14 772 2.45 8,979,826 1.77 1.28 2.91 3.79 2.37 3.09 0.45 3.26 307,082 138,292 1,928,910 1,058,758 570,179 1,352,041 161,156 752714 2.52 6,269,132 1.77 1.28 2.91 3.79 2.37 3.09 0.45 3.26 198,931 65,723 345,634 150,082 109,664 134,641 23,278 648078 NC-1002 PROPOSED NET SALVAGE ANNUAL ACCRUAL PERCENT AMOUNT ~ (10) {11} (12) PROBABLE RETIREMENT DATE (B) SURVIVOR CURVE (9) 12-2027 12-2027 06-2035 06-2028 06-2028 06-2033 06-2033 06-2033 100-R2.5 100-R2.5 100-R2.5 100-R2.5 100-R2.5 100-R2.5 100-R2.5 100-R2.5 (5) (5) (6) (6) (6) (6) (6) (6) 12-2027 12-2027 06-2035 06-2028 06-2028 06-2033 06-2033 06-2033 60-R1 60-R1 60-R1 60-R1 60-R1 60-R1 60-R1 60-R1 (5) (5) (6) (6) (6) (6) (6) (6) 12-2027 12-2027 06-2035 06-2028 06-2028 06-2033 06-2033 10-82 10-82 10-82 10-82 10-82 10-82 10-82 INCREASE/ (DECREASE) {13} STEAM PRODUCTION PLANT 311.00 312.00 STRUCTURES AND IMPROVEMENTS ASHEVILLE UNIT 1 ASHEVILLE UNIT 2 MAYO UNIT1 ROXBORO UNIT 1 ROXBORO UNIT 2 ROXBORO UNIT 3 ROXBORO UNIT 4 ROXBORO COMMON 40,986,503.48 42,373,261.02 168,932,483.46 17,174,677.21 5,416,496.90 38,522,181.79 19,466,674.79 156283330.87 TOTAL STRUCTURES AND IMPROVEMENTS 489,155,609.52 BOILER PLANT EQUIPMENT ASHEVILLE UNIT 1 ASHEVILLE UNIT 2 MAYO UNIT1 ROXBORO UNIT 1 ROXBORO UNIT 2 ROXBORO UNIT 3 ROXBORO UNIT 4 ROXBORO COMMON 148,313,601.63 144,993,923.70 838,812,299.80 204,279,933.62 303,987,260.53 323,712,623.07 346,753,013.34 223669705.24 TOTAL BOILER PLANT EQUIPMENT 312.10 BOILER PLANT EQUIPMENT- SCR CATALYST ASHEVILLE UNIT 1 ASHEVILLE UNIT 2 MAYO UNIT1 ROXBORO UNIT 1 ROXBORO UNIT 2 ROXBORO UNIT 3 ROXBORO UNIT 4 TOTAL BOILER PLANT EQUIPMENT - SCR CATALYST 314.00 315.00 3,862,916.02 1,927,313.56 7,428,602.62 7,925,144.00 5,857,261.54 6,471,525.71 7261916.42 18,741,885.48 13,882,956.62 109,381,682.47 45,496,950.35 44,294,101.32 71,631,233.48 62,337,989.16 452602.14 TOTAL TURBOGENERATOR UNITS 366,219,401.02 ACCESSORY ELECTRIC EQUIPMENT ASHEVILLE UNIT 1 ASHEVILLE UNIT 2 MAYO UNIT1 ROXBORO UNIT 1 ROXBORO UNIT 2 ROXBORO UNIT 3 ROXBORO UNIT 4 ROXBORO COMMON MISCELLANEOUS POWER PLANT EQUIPMENT ASHEVILLE UNIT 1 ASHEVILLE UNIT 2 MAYO UNIT1 ROXBORO UNIT 1 ROXBORO UNIT 2 ROXBORO UNIT 3 ROXBORO UNIT 4 ROXBORO COMMON TOTAL MISCELLANEOUS POWER PLANT EQUIPMENT TOTAL STEAM PRODUCTION PLANT 06-2031 06-2033 06-2035 06-2032 06-2032 06-2035 06-2035 40,734,679.87 TURBOGENERATOR UNITS ASHEVILLE UNIT 1 ASHEVILLE UNIT 2 MAYO UNIT1 ROXBORO UNIT 1 ROXBORO UNIT 2 ROXBORO UNIT 3 ROXBORO UNIT 4 ROXBORO COMMON TOTAL ACCESSORY ELECTRIC EQUIPMENT 316.00 2,534,522,360.93 17,355,131.07 10,773,733.68 66,310,642.67 27,905,371.32 24,051,101.36 43,691,759.56 35,812,524.30 23 062 490.99 06-2031 06-2033 06-2035 06-2032 06-2032 06-2035 06-2035 06-2035 85-L0.5 85-L0.5 85-L0.5 85-L0.5 85-L0.5 85-L0.5 85-L0.5 85-L0.5 (7.73) (7.74) (6.66) (9.60) (9.60) (9.61) (9.61) (9.60) 06-2031 06-2033 06-2035 06-2032 06-2032 06-2035 06-2035 06-2035 75-R1 75-R1 75-R1 75-R1 75-R1 75-R1 75-R1 75-R1 (7.41) (7.39) (6.34) (9.27) (9.26) (9.20) (9.19) (9.24) 06-2031 06-2033 06-2035 06-2032 06-2032 06-2035 06-2035 06-2035 50-L1 50-L1 50-L1 50-L1 50-L1 50-L1 50-L1 50-L1 (7.23) (7.18) (6.07) (9.02) (9.05) (8.92) (8.91) (9.00) 248,962,754.95 11,242,842.79 5,120,201.92 11,881,936.66 3,955,672.42 4,625,804.91 4,350,990.42 5,172,811.44 19856538.29 1.77 1.28 2.91 3.79 2.37 3.09 0.45 3.26 725,215 543,903 4,914,077 651,624 128,409 1,192,069 87,600 5100775 2.73 13,343,673 1.77 1.28 2.91 3.79 2.37 3.09 0.45 3.26 2,624,261 1,861,142 24,400,211 7,750,585 7,206,626 10,017,287 1,560,389 7300132 2.47 62,720,632 35.45 34.61 19.19 11.30 19.82 20.02 13.62 1,369,330 667,091 1,425,809 895,589 1,161,144 1,295,878 989073 1.05 3.22 1.95 2.52 3.42 0.87 3.00 5.03 428,791 1,363,810 3,285,836 432,079 185,249 333,874 701,687 7857852 2.98 14,589,178 1,245,505 4.28 3.03 4.02 6.56 5.04 4.74 1.33 1.91 6,347,551 4,396,429 33,687,721 13,393,102 15,319,150 15,331,189 4,598,356 4266946 3,723,290 2,535,287 9,287,510 5,642,517 8,112,524 5,313,902 3,037,967 (30331861 3.64 97,340,444 34,619,812 4.47 5.44 5.49 1.64 3.91 1.22 172,814 104,781 408,100 145,609 228,843 512,753 88934 (1,196,516) (562,310) (1,017,709) (749,980) (932,301) (783,125) (900139} 4.08 1,661,834 (6,142,080) 6.75 1.21 3.04 6.66 7.10 4.39 3.26 2.36 1,264,809 168,185 3,327,325 3,031,544 3,145,016 3,146,966 2,031,835 10685 933,190 (10,017) 145,521 1,305,344 2,094,936 930,337 1,751,314 (4087} 7.92 (296,424) 819,907 (1,628,241) (219,545) 56,840 (858,195) 614,087 2 757077 12-2027 12-2027 06-2035 06-2028 06-2028 06-2033 06-2033 06-2033 60-SO 60-SO 60-SO 60-SO 60-SO 60-SO 60-SO 60-SO (5) (5) (6) (6) (6) (6) (6) (6) 4.40 16,126,365 7,146,539 12-2027 12-2027 06-2035 06-2028 06-2028 06-2033 06-2033 06-2033 65-R1.5 65-R1.5 65-R1.5 65-R1.5 65-R1.5 65-R1.5 65-R1.5 65-R1.5 (5) (5) (6) (6) (6) (6) (6) (6) 4.65 0.09 3.55 7.40 3.55 4.61 3.05 5.01 841,105 9,444 2,352,360 2,064,642 853,008 2,016,287 1,091,218 1155858 534,023 (128,848) 423,450 1,005,884 282,829 664,246 930,062 403144 4.17 10,383,922 4,114,790 12-2027 12-2027 06-2035 06-2028 06-2028 06-2033 06-2033 06-2033 50-SO 50-SO 50-SO 50-SO 50-SO 50-SO 50-SO 50-SO (5) (5) (6) (6) (6) (6) (6) (6) 6.55 1.64 3.69 6.19 3.65 4.18 3.63 5.46 736,216 94,031 462,117 244,976 178,033 181,671 198,370 1083907 537,285 28,308 116,483 94,894 68,369 47,030 175,092 435829 66206798.85 2.53 1676030 4.80 3179321 1503291 3,745,801,605.14 2.69 100,793,207 3.83 143,281,064 42,487,857 2.08 1.23 1.08 1.22 1.65 7,115,512 4,856,948 21,348,783 (1,291,523) 6022 321 2.62 2.64 1.64 1.29 3.40 8,967,612 10,425,079 32,470,324 (1,365,503) 11090384 1,852,100 5,568,131 11,121,541 (73,979) 5068063 1.30 38,052,041 2.10 61,587,896 23,535,855 NUCLEAR PRODUCTION PLANT 321.00 STRUCTURES AND IMPROVEMENTS BRUNSWICK UNIT 1 BRUNSWICK UNIT2 HARRIS UNIT 1 HARRIS DISALLOWANCE ROBINSON UNIT2 342,536,583.98 395,034,383.46 1,973,997,504.80 (105,862,561.00) 325883169.07 TOTAL STRUCTURES AND IMPROVEMENTS 2,931,589,080.31 09-2036 12-2034 10-2046 85-L1.5 85-L1.5 85-L1.5 (5) (5) (5) 07-2030 85-L1.5 (5) 09-2036 12-2034 10-2046 80-81 80-81 80-81 (2) (2) (3) 07-2030 80-81 (1) DUKE ENERGY PROGRESS COMPARISON OF CURRENT AND PROPOSED DEPRECIATION PARAMETERS, RATES AND ACCRUALS AS OF DECEMBER 31, 2016 VERSION 7 ORIGINAL COST ASOF ACCOUNT (1) 322.00 323.00 324.00 REACTOR PLANT EQUIPMENT BRUNSWICK UNIT 1 BRUNSWICK UNIT2 HARRIS UNIT 1 HARRIS DISALLOWANCE ROBINSON UNIT2 552,427,851.27 514,836,051.00 1,067,049,592.28 (132,409,445.00) 437677114.79 TOTAL REACTOR PLANT EQUIPMENT 2,439,581,164.34 TURBOGENERATOR UNITS BRUNSWICK UNIT 1 BRUNSWICK UNIT2 HARRIS UNIT 1 HARRIS DISALLOWANCE ROBINSON UNIT2 205,874,639.67 169,049,172.46 412,001,293.36 (610,466.00) 187789082.81 TOTAL TURBOGENERATOR UNITS 974,103,722.30 ACCESSORY ELECTRIC EQUIPMENT BRUNSWICK UNIT 1 BRUNSWICK UNIT2 HARRIS UNIT 1 HARRIS DISALLOWANCE ROBINSON UNIT2 TOTAL ACCESSORY ELECTRIC EQUIPMENT 325.00 DECEMBER 31, 2016 (2) 173,454,241.64 187,044,131.79 775,605,209.04 (256,837,664.66) 142887818.39 PROBABLE RETIREMENT DATE (3) SURVIVOR CURVE (4) 09-2036 12-2034 10-2046 55-R1.5 55-R1.5 55-R1.5 07-2030 55-R1.5 CURRENT NET SALVAGE PERCENT (6) (10) (10) (10) (10) 09-2036 12-2034 10-2046 55-L1 55-L1 55-L1 (10) (10) (10) 07-2030 55-L1 (10) 09-2036 12-2034 10-2046 07-2030 55-R4 55-R4 55-R4 55-R4 ANNUAL ACCRUAL ~ AMOUNT {6} {7} 2.62 2.50 2.61 1.22 2.81 14,464,218 12,870,901 27,805,178 (1,615,395) 12305292 2.70 65,830,195 3.21 2.95 1.eo 1.22 2.78 6,606,929 4,984,584 7,413,551 (7,448) 5227109 2.49 24,224,726 1.86 (2.40) (2.40) (2.40) 0.94 (2.40) 1.22 2.75 3,229,545 2,309,621 7,310,079 (3,133,420) 3931844 1.34 13,647,669 2.69 2.29 2.11 1.22 3.07 4,733,754 1,467,009 4,826,060 (678,041) 4758501 1,022,153,736.20 1.23 NC-1002 PROBABLE RETIREMENT DATE (B) SURVIVOR CURVE (9) 09-2036 12-2034 10-2046 55-R1.5 55-R1.5 55-R1.5 PROPOSED NET SALVAGE PERCENT (10) (2) (2) (3) ~ INCREASE/ (DECREASE) {11} ANNUAL ACCRUAL AMOUNT (12) {13} 2.eo 07-2030 55-R1.5 (1) 3.40 15,463,097 14,766,696 29,088,178 (1,707,926) 14894298 2.97 72,504,343 6,674,148 09-2036 12-2034 10-2046 50-SO 50-SO 50-SO (2) (2) (3) 3.06 07-2030 50-SO (1) 5.04 6,303,023 5,619,890 10,234,222 (7,874) 9468887 (303,906) 635,306 2,820,671 (427) 4241 778 3.25 31,618,148 7,393,422 3.77 3.20 3,310,237 3,679,996 7,096,450 (179,484) 1559253 2.87 2.73 1.29 3.32 2.48 1.29 09-2036 12-2034 10-2046 55-R2.5 55-R2.5 55-R2.5 (2) (2) (3) 07-2030 55-R2.5 (1) 3.84 6,539,782 5,989,617 14,406,529 (3,312,904) 5491 097 2.85 29,114,121 09-2036 12-2034 10-2046 50-R1 50-R1 50-R1 (2) (2) (3) 3.56 07-2030 50-R1 (1) 1.86 1.29 998,879 1,895,795 1,283,000 (92,531) 2589006 15,466,452 MISCELLANEOUS PLANT EQUIPMENT BRUNSWICK UNIT 1 BRUNSWICK UNIT2 HARRIS UNIT 1 HARRIS DISALLOWANCE ROBINSON UNIT2 163,752,380.50 64,019,601.47 228,506,611.50 (55,577,154.00) 154899130.76 TOTAL MISCELLANEOUS PLANT EQUIPMENT 555600570.23 2.72 15107283 3.86 21458960 6351 677 7,923,028,273.38 1.98 156,861,913 2.73 216,283,468 59,421,555 3.09 2.94 2.86 2.75 129,374 44,115 73,963 93803 2.70 6.82 2.42 3.21 113,136 102,341 62,717 109244 (16,238) 58,226 (11,246) 15441 2.92 341,254 3.32 387,438 46,184 2.34 3.35 1.66 2.93 193,609 128,297 128,998 865556 (62,314) 15,654 (67,063) 52154 2.71 1,316,460 (61,569) 4.97 TOTAL NUCLEAR PRODUCTION PLANT 09-2036 12-2034 10-2046 40-R1 40-R1 40-R1 (1) (1) (1) 07-2030 40-R1 (1) 3.52 2.36 1.29 5.61 5,835,335 2,254,714 5,389,214 (716,880) 8 696 577 1,101,581 787,705 563,154 (38,839) 3938076 HYDRAULIC PRODUCTION PLANT 331.00 STRUCTURES AND IMPROVEMENTS BLEWETT MARSHALL TILLERY WALTERS TOTAL STRUCTURES AND IMPROVEMENTS 332.00 333.00 334.00 335.00 336.00 4,183,330.13 1,499,833.75 2,587,756.83 3405808.51 8,275,323.29 3,829,716.68 6,859,608.78 29533145.47 TOTAL RESERVOIRS, DAMS AND WATERWAY 48,497,794.22 WATER WHEELS, TURBINES AND GENERATORS BLEWETT MARSHALL TILLERY WALTERS 7,082,284.69 5,865,247.45 13,608,870.56 4 024 693.44 TOTAL WATER WHEELS, TURBINES AND GENERATORS 30,581,096.14 ACCESSORY ELECTRIC EQUIPMENT BLEWETT MARSHALL TILLERY WALTERS 7,366,884.27 1,179,515.99 3,125,817.08 13947316.32 TOTAL ACCESSORY ELECTRIC EQUIPMENT 25,619,533.66 MISCELLANEOUS PLANT EQUIPMENT BLEWETT MARSHALL TILLERY WALTERS 1,272,690.93 193,284.70 1,103,355.05 1437259.49 TOTAL MISCELLANEOUS PLANT EQUIPMENT 4,006,590.17 TOTAL ROADS, RAILROADS, AND BRIDGES TOTAL HYDRAULIC PRODUCTION PLANT 115-R1 115-R1 115-R1 115-R1 (42.99) (14.53) (29.59) (1.49) 11,676,729.22 RESERVOIRS, DAMS AND WATERWAY BLEWETT MARSHALL TILLERY WALTERS ROADS, RAILROADS, AND BRIDGES MARSHALL WALTERS 06-2058 06-2050 06-2058 06-2034 12,946.58 8258.48 06-2058 06-2050 06-2058 06-2034 135-L0.5 135-L0.5 135-L0.5 135-L0.5 (40.80) (14.42) (29.43) (2.09) 3.09 2.94 2.86 2.75 255,923 112,643 196,061 813402 2.84 1,378,029 2.75 219,027 172,515 388,969 110848 06-2058 06-2050 06-2058 06-2034 55-L2 55-L2 55-L2 55-L2 (38.79) (13.89) (27.90) (1.44) 3.09 2.94 2.86 2.91 891,358 06-2058 06-2050 06-2058 06-2034 33-L4 33-L4 33-L4 33-L4 (47.45) (16.39) (34.31) (1.47) 3.09 2.94 2.86 2.75 227,828 34,693 89,342 384137 2.87 736,000 3.09 2.94 2.86 2.75 39,359 5,685 31,536 39585 2.90 116,165 2.94 381 227 06-2058 06-2050 06-2058 06-2034 60-R1.5 60-R1.5 60-R1.5 60-R1.5 (44.69) (15.17) (32.29) (1.44) 06-2050 06-2034 75-R3 75-R3 (15.48) (1.27) 2.75 06-2055 06-2035 06-2055 06-2034 110-R2 110-R2 110-R2 110-R2 06-2055 06-2035 06-2055 06-2034 120-R3 120-R3 120-R3 120-R3 (45) (17) (35) (7) (45) (17) (35) (7) 06-2055 06-2035 06-2055 06-2034 70-R1.5 70-R1.5 70-R1.5 70-R1.5 (45) (17) (35) 3.04 3.93 (7) 3.20 351,995 178,347 534,184 128847 132,968 5,832 145,215 17999 3.90 1,193,373 302,015 06-2055 06-2035 06-2055 06-2034 60-81 60-51 60-81 60-51 (45) (17) (35) 3.93 3.50 3.46 5.68 289,165 41,324 108,291 791692 61,337 6,631 18,949 407555 4.eo 1,230,472 494,472 (7) 06-2055 06-2035 06-2055 06-2034 55-S0.5 55-S0.5 55-S0.5 55-S0.5 (45) (17) (35) 3.91 5.29 2.77 (7) 4.69 49,710 10,223 30,529 70224 10,351 4,538 (1,007) 30639 4.01 160,686 44,521 06-2035 06-2034 75-R3 75-R3 (17) 2.69 0.59 374 49 (7) 21205.06 2.87 608 1.99 423 120,402,948.47 2.88 3,463,416 3.56 4,288,852 (7) (178) (185) 825,436 DUKE ENERGY PROGRESS COMPARISON OF CURRENT AND PROPOSED DEPRECIATION PARAMETERS, RATES AND ACCRUALS AS OF DECEMBER 31, 2016 VERSION 7 ORIGINAL COST ASOF ACCOUNT (1) DECEMBER 31, 2016 (2) CURRENT NET SALVAGE ANNUAL ACCRUAL PERCENT AMOUNT ~ (6) (6) (7) PROBABLE RETIREMENT DATE (3) SURVIVOR CURVE (4) 06-2040 06-2027 06-2027 06-2037 06-2040 06-2049 06-2042 06-2027 06-2027 06-2042 06-2051 06-2053 06-2053 40-84 40-84 40-84 40-84 40-84 40-85 40-84 40-84 40-84 40-84 40-84 40-84 40-84 (0.21) (3.05) (0.64) (1.67) (1.36) (1.36) 0.67 0.21 (0.91) (2.83) 06-2040 06-2027 06-2027 06-2037 06-2040 06-2049 06-2042 06-2027 06-2027 06-2042 06-2051 06-2053 06-2053 50-R3 50-R3 50-R3 50-R3 50-R3 50-R4 50-R3 50-R3 50-R3 50-R3 50-R3 50-R3 50-R3 0.74 (2.44) (O.S1) (0.54) 0.65 0.65 2.40 0.20 (0.03) (3.28) 06-2040 06-2027 06-2027 06-2037 06-2040 06-2049 06-2042 06-2027 06-2027 06-2042 06-2051 06-2053 06-2053 45-82 45-82 45-82 45-82 45-82 45-83 45-82 45-82 45-82 45-82 45-82 45-82 45-82 0.33 (2.69) (0.66) (0.73) 0.05 0.05 1.59 0.18 (0.18) (2.60) 2.44 41,377,186 06-2042 06-2051 06-2053 06-2053 5-LO.S 5-LO.S 5-LO.S 5-LO.S 40 40 40 40 2.28 2.38 2.38 2.38 889,345 803,461 702,022 1349027 2.36 3,743,856 06-2040 06-2027 06-2027 06-2037 06-2040 06-2049 06-2042 06-2027 06-2027 06-2042 06-2051 06-2053 06-2053 45-L2 45-L2 45-L2 45-L2 45-L2 45-L3 45-L2 45-L2 45-L2 45-L2 45-L2 45-L2 45-L2 (0.94) (3.24) (1.85) (1.79) (2.22) (2.22) (O.S7) (0.34) (0.59) (4.08) 2.26 2.37 2.60 2.60 2.77 2.77 2.80 0.20 0.37 2.28 2.38 2.38 2.38 171,931 47,136 454,985 441,549 612,004 360,569 923,870 2,689 7,840 922,765 750,397 1,060,550 1312815 2.46 7,069,100 06-2040 06-2040 06-2041 06-2040 25-82.S 25-82.S 25-82.S 25-82.S (12) (14) (22) (17) 4.00 4.00 4.00 4.00 617,785 1,243,616 1,907,232 3399141 4.00 7,167,774 NC-1002 PROPOSED NET SALVAGE ANNUAL ACCRUAL PERCENT AMOUNT ~ PROBABLE RETIREMENT DATE (B) SURVIVOR CURVE (9) 06-2039 06-2024 06-2020 06-2037 06-2040 06-2049 06-2041 06-2017 06-2024 06-2042 06-2051 06-2053 06-2052 50-82 50-82 50-82 50-82 50-82 50-82 50-82 50-82 50-82 50-82 50-82 50-82 50-82 (3) (7) (7) (7) (4) (4) (3) (20) (22) (4) (7) (3) (6) 06-2039 06-2024 06-2020 06-2037 06-2040 06-2049 06-2041 06-2017 06-2024 06-2042 06-2051 06-2053 06-2052 50-R2.5 50-R2.5 50-R2.5 50-R2.5 50-R2.5 50-R0.5 50-R2.5 50-R2.5 50-R2.5 50-R2.5 50-R2.5 50-R2.5 50-R2.5 (3) (7) (7) (7) (4) (4) (3) (20) (22) (4) (7) (3) (6) 06-2039 06-2024 06-2020 06-2037 06-2040 06-2049 06-2041 06-2017 06-2024 06-2042 06-2051 06-2053 06-2052 35-SO 35-SO 35-SO 35-SO 35-SO 35-SO 35-SO 35-SO 35-SO 35-SO 35-SO 35-SO 35-SO (3) (7) (7) (7) (4) (4) (3) (20) (22) (4) (7) (3) (6) 06-2042 06-2051 06-2053 06-2052 5-LO.S 5-LO.S 5-LO.S 5-LO.S 40 40 40 40 06-2039 06-2024 06-2020 06-2037 06-2040 06-2049 06-2041 06-2017 06-2024 06-2042 06-2051 06-2053 06-2052 55-R2 55-R2 55-R2 55-R2 55-R2 55-R2 55-R2 55-R2 55-R2 55-R2 55-R2 55-R2 55-R2 (3) (7) (7) (7) (4) (4) (3) (20) (22) (4) (7) (3) (6) 06-2040 06-2040 06-2041 06-2040 25-82.S 25-82.S 25-82.S 25-82.S (9) (12) (17) (13) (10) {11} (12) INCREASE/ (DECREASE) {13} OTHER PRODUCTION PLANT 341.00 STRUCTURES AND IMPROVEMENTS ASHEVILLE IC TURBINE BLEWETT IC TURBINES DARLINGTON IC TURBINE UNITS 1-11 DARLINGTON IC TURBINE UNITS 12 AND 13 H.F. LEE IC TURBINES (WAYNE COUNTY UNITS 10-13) H.F. LEE IC TURBINES (WAYNE COUNTY UNIT 14) SMITH IC TURBINES (RICHMOND COUNTY) SUTTON IC TURBINES WEATHERSPOON IC TURBINES SMITH COMBINED CYCLE POWER BLOCK4 (RICHMOND COUNTY) SMITH COMBINED CYCLE POWER BLOCKS (RICHMOND COUNTY) SUTTON COMBINED CYCLE H.F. LEE COMBINED CYCLE (WAYNE COUNTY) TOTAL STRUCTURES AND IMPROVEMENTS 342.00 343.00 FUEL HOLDERS, PRODUCERS AND ACCESSORIES ASHEVILLE IC TURBINE BLEWETT IC TURBINES DARLINGTON IC TURBINE UNITS 1-11 DARLINGTON IC TURBINE UNITS 12 AND 13 H.F. LEE IC TURBINES (WAYNE COUNTY UNITS 10-13) H.F. LEE IC TURBINES (WAYNE COUNTY UNIT 14) SMITH IC TURBINES (RICHMOND COUNTY) SUTTON IC TURBINES WEATHERSPOON IC TURBINES SMITH COMBINED CYCLE POWER BLOCK4 (RICHMOND COUNTY) SMITH COMBINED CYCLE POWER BLOCKS (RICHMOND COUNTY) SUTTON COMBINED CYCLE H.F. LEE COMBINED CYCLE (WAYNE COUNTY) 119,168,036.36 37,484,931.08 8,455,727.27 28,027,601.92 38,958,379.14 121,712,253.32 61,S26,436.54 166,728,991.36 5,237,022.82 12,482,977.02 114,327,816.53 298,972,032.94 357,643,897.26 442951418.36 PRIME MOVERS - ROTABLE PARTS SMITH COMBINED CYCLE POWER BLOCK4 (RICHMOND COUNTY) SMITH COMBINED CYCLE POWER BLOCKS (RICHMOND COUNTY) SUTTON COMBINED CYCLE H.F. LEE COMBINED CYCLE (WAYNE COUNTY) GENERATORS ASHEVILLE IC TURBINE BLEWETT IC TURBINES DARLINGTON IC TURBINE UNITS 1-11 DARLINGTON IC TURBINE UNITS 12 AND 13 H.F. LEE IC TURBINES (WAYNE COUNTY UNITS 10-13) H.F. LEE IC TURBINES (WAYNE COUNTY UNIT 14) SMITH IC TURBINES (RICHMOND COUNTY) SUTTON IC TURBINES WEATHERSPOON IC TURBINES SMITH COMBINED CYCLE POWER BLOCK4 (RICHMOND COUNTY) SMITH COMBINED CYCLE POWER BLOCKS (RICHMOND COUNTY) SUTTON COMBINED CYCLE H.F. LEE COMBINED CYCLE (WAYNE COUNTY) TOTAL GENERATORS 344.00 5,029,021.76 413,479.62 5,601,525.91 7,356,918.17 7,250,198.61 1,461,178.80 8,439,158.92 554,991.82 1,471,357.77 13,247,466.84 22,S7S,250.21 20,443,654.24 25323833.69 PRIME MOVERS ASHEVILLE IC TURBINE BLEWETT IC TURBINES DARLINGTON IC TURBINE UNITS 1-11 DARLINGTON IC TURBINE UNITS 12 AND 13 H.F. LEE IC TURBINES (WAYNE COUNTY UNITS 10-13) H.F. LEE IC TURBINES (WAYNE COUNTY UNIT 14) SMITH IC TURBINES (RICHMOND COUNTY) SUTTON IC TURBINES WEATHERSPOON IC TURBINES SMITH COMBINED CYCLE POWER BLOCK4 (RICHMOND COUNTY) SMITH COMBINED CYCLE POWER BLOCKS (RICHMOND COUNTY) SUTTON COMBINED CYCLE H.F. LEE COMBINED CYCLE (WAYNE COUNTY) TOTAL PRIME MOVERS- ROTABLE PARTS 344.00 200,588,233.14 TOTAL FUEL HOLDERS, PRODUCERS AND ACCESSORIES TOTAL PRIME MOVERS 343.10 31,682,402.92 979,797.44 204,580.09 8,32S,692.35 8,836,119.07 1,356,819.84 19,264,702.7S 3,006,621.04 3,462,577.63 47,694,242.S2 40,103,160.35 12,S70,663.41 23100853.73 GENERATORS - SOLAR CAMP LEJUNE FAYETTEVILLE ELM CITY WARSAW TOTAL GENERATORS - SOLAR 1,694,509,485.56 38,982,429.34 33,743,289.71 29,483,115.12 56655636.S7 158,864,470.74 7,598,476.07 1,988,284.95 17,S29,774.65 17,012,097.35 22,068,501.33 13,001,920.19 33,047,298.83 1,339,614.01 2,095,743.68 40,447,296.11 31,S14,726.56 44,540,349.56 55134 793.97 287,318,877.26 15,444,624.09 31,090,387.S2 47,680,793.56 84978537.10 179,194,342.27 2.26 2.37 2.63 2.63 2.77 2.77 2.80 0.20 0.37 2.28 2.38 2.38 2.38 716,878 23,228 5,379 218,891 245,043 37,627 538,564 6,034 12,954 1,088,096 954,896 299,320 550054 2.34 4,696,965 2.26 2.37 2.60 2.60 2.77 2.77 2.80 0.20 0.37 2.28 2.38 2.38 2.38 113,792 9,802 145,388 190,949 201,063 40,521 235,925 1,114 S,504 302,228 537,539 486,784 602 986 2.41 2,873,594 2.26 2.37 2.60 2.60 2.77 2.77 2.80 0.20 0.37 2.28 2.38 2.38 2.38 848,172 200,460 727,456 1,011,165 3,37S,324 1,706,251 4,661,076 10,511 46,699 2,608,275 7,118,823 8,S1S,859 10547116 2.95 1.36 1.82 0.94 2.89 3.S7 2.42 933,567 13,281 0 16,478 235,272 37,236 564,492 0 62,985 448,800 1,158,105 449,056 559956 216,689 (9,947) (5,379) (202,413) (9,771) (391) 2S,928 (6,034) 50,031 (639,296) 203,209 149,736 9902 2.23 4,479,228 (217,737) 2.2S 1.86 5.S7 2.79 2.92 2.96 3.10 113,214 7,689 0 101,178 200,645 43,642 2S7,416 0 81,944 369,221 660,225 604,730 785364 (578) (2,113) (145,388) (89,771) (418) 3,121 21,491 (1,114) 76,440 66,993 122,686 117,946 182 378 2.71 3,22S,268 351,674 3.18 3.76 20.02 5.38 3.82 3.46 5.S1 0.49 5.77 3.84 3.60 4.00 1,193,688 318,183 5,609,948 2,095,867 4,646,414 2,127,160 9,193,280 0 60,687 6,592,620 11,476,899 12,862,160 17711693 345,516 117,723 4,882,492 1,084,702 1,271,090 420,909 4,532,204 (10,511) 13,988 3,984,345 4,358,076 4,346,301 7164577 4.36 73,888,599 32,S11,413 13.49 15.17 14.68 14.68 5,258,139 5,118,174 4,329,383 8318400 4,368,794 4,314,713 3,627,361 6969373 14.49 23,024,096 19,280,240 2.63 1.12 2.90 2.91 3.10 21S,237 0 2,02S,552 67S,072 640,490 370,423 1,807,476 0 0 451,449 913,158 1,298,118 1708280 43,306 (47,136) 1,S70,567 233,523 28,486 9,854 883,606 (2,689) (7,840) (471,316) 162,761 237,568 395465 3.S2 10,105,255 3,036,155 5.07 5.22 5.26 5.27 783,569 1,622,910 2,507,807 4479932 165,784 379,294 600,575 1080791 5.24 9,394,218 2,226,444 0.20 2.66 2.74 2.93 1.38 2.77 2.99 3.05 11.55 3.97 2.90 2.65 5.47 DUKE ENERGY PROGRESS COMPARISON OF CURRENT AND PROPOSED DEPRECIATION PARAMETERS, RATES AND ACCRUALS AS OF DECEMBER 31, 2016 VERSION 7 ACCOUNT (1) 345.00 ACCESSORY ELECTRIC EQUIPMENT ASHEVILLE IC TURBINE BLEWETT IC TURBINES DARLINGTON IC TURBINE UNITS 1-11 DARLINGTON IC TURBINE UNITS 12 AND 13 H.F. LEE IC TURBINES (WAYNE COUNTY UNITS 10-13) H.F. LEE IC TURBINES (WAYNE COUNTY UNIT 14) SMITH IC TURBINES (RICHMOND COUNTY) SUTTON IC TURBINES WEATHERSPOON IC TURBINES SMITH COMBINED CYCLE POWER BLOCK4 (RICHMOND COUNTY) SMITH COMBINED CYCLE POWER BLOCKS (RICHMOND COUNTY) SUTTON COMBINED CYCLE H.F. LEE COMBINED CYCLE (WAYNE COUNTY) TOTAL ACCESSORY ELECTRIC EQUIPMENT 345.00 ACCESSORY ELECTRIC EQUIPMENT - SOLAR CAMP LEJUNE FAYETTEVILLE ELM CITY WARSAW TOTAL ACCESSORY ELECTRIC EQUIPMENT - SOLAR 346.00 MISCELLANEOUS PLANT EQUIPMENT ASHEVILLE IC TURBINE BLEWETT IC TURBINES DARLINGTON IC TURBINE UNITS 1-11 DARLINGTON IC TURBINE UNITS 12 AND 13 H.F. LEE IC TURBINES (WAYNE COUNTY UNITS 10-13) H.F. LEE IC TURBINES (WAYNE COUNTY UNIT 14) SMITH IC TURBINES (RICHMOND COUNTY) SUTTON IC TURBINES WEATHERSPOON IC TURBINES SMITH COMBINED CYCLE POWER BLOCK4 (RICHMOND COUNTY) SMITH COMBINED CYCLE POWER BLOCKS (RICHMOND COUNTY) SUTTON COMBINED CYCLE H.F. LEE COMBINED CYCLE (WAYNE COUNTY) TOTAL MISCELLANEOUS PLANT EQUIPMENT TOTAL OTHER PRODUCTION PLANT TOTAL PRODUCTION PLANT ORIGINAL COST ASOF DECEMBER 31, 2016 PROBABLE RETIREMENT DATE SURVIVOR CURVE (2) (3) (4) 06-2040 06-2027 06-2027 06-2037 06-2040 06-2049 06-2042 06-2027 06-2027 06-2042 06-20S1 06-20S3 06-20S3 43-R3 43-R3 43-R3 43-R3 43-R3 43-R4 43-R3 43-R3 43-R3 43-R3 43-R3 43-R3 43-R3 10,953,371.69 1,420,146.80 6,141,96S.1S 10,335,092.10 19,926,692.16 10,599,164.94 28,962,744.95 2,196,809.65 2,926,2S7.02 21,352,302.64 S1,089,810.82 61,396,437.31 76266662.40 CURRENT NET SALVAGE ANNUAL ACCRUAL PERCENT AMOUNT ~ (6) (6) (7) 0.18 (2.S1) (0.80) (1.06) (0.28) (0.28) 1.04 0.09 (0.40) (3.32) 303,567,4S7.63 2,761,117.30 533,260.74 133,4S8.18 1258878.46 247,842 33,667 159,41S 268,247 552,607 293,936 809,682 4,409 10,947 487,131 1,216,499 1,461,911 181S98S 2.43 7,362,280 06-2040 06-2040 06-2041 06-2040 2S-S2.S 2S-S2.S 2S-S2.S 2S-S2.S (12) (14) (22) (17) 4.00 4.00 4.00 4.00 110,44S 21,330 S,338 503SS 4.00 187,469 06-2040 06-2027 06-2027 06-2037 06-2040 06-2049 06-2042 06-2027 06-2027 06-2042 06-20S1 06-20S3 06-20S3 2S-S3 2S-S3 2S-S3 2S-S3 2S-S3 2S-S4 2S-S3 2S-S3 2S-S3 2S-S3 2S-S3 2S-S3 2S-S3 0.07 (1.87) (0.60) (0.20) 0.01 O.Q1 0.10 0.14 (0.03) (0.07) 2.26 2.37 2.00 2.00 2.77 2.77 2.80 0.20 0.37 2.28 2.38 2.38 2.38 56,897 4,8S8 912 38.912 36,S20 31,220 11S,284 221 2,721 97,0S2 200,48S 193,8S4 243128 4,686,714.68 2,S14,SSS.35 204,914.55 35,147.08 1.499.222.76 1,316,904.66 1,12S,769.23 4,123,777.40 110,334.87 727,233.81 4,254,0S2.48 8,419,84S.29 8,141,346.78 10210761.45 2.26 2.37 2.00 2.00 2.77 2.77 2.80 0.20 0.37 2.28 2.38 2.38 2.38 NC-1002 PROBABLE RETIREMENT DATE SURVIVOR CURVE (B) (9) 06-2039 06-2024 06-2020 06-2037 06-2040 06-2049 06-2041 06-2017 06-2024 06-2042 06-20S1 06-20S3 06-20S2 50-R1.S 50-R1.S 50-R1.S 50-R1.S 50-R1.S 50-R1.S 50-R1.S 50-R1.S 50-R1.S 50-R1.S 50-R1.S 50-R1.S 50-R1.S PROPOSED NET SALVAGE ANNUAL ACCRUAL PERCENT AMOUNT ~ (10) {11} (12) (3) (7) (7) (7) (4) (4) (3) (20) (22) (4) (7) (3) (6) 06-2040 06-2040 06-2041 06-2040 2S-S2.S 2S-S2.S 2S-S2.S 2S-S2.S (9) (12) (17) (13) 06-2039 06-2024 06-2020 06-2037 06-2040 06-2049 06-2041 06-2017 06-2024 06-2042 06-20S1 06-20S3 06-20S2 40-81.S 40-81.S 40-81.S 40-81.S 40-81.S 40-81.S 40-81.S 40-81.S 40-81.S 40-81.S 40-81.S 40-81.S 40-81.S (3) INCREASE/ (DECREASE) {13} 3.67 1.18 8.28 3.78 3.01 2.94 3.06 401,640 16,688 508,799 390,S41 598,988 311,918 887,3S6 8.90 3.23 3.06 3.18 3.29 260,4SO 689,172 1,565,272 1,955,403 2505818 3.32 10,092,04S 2,729,76S 5.06 S.23 S.26 S.27 139,702 27,88S 7,021 66349 29,2S7 6,SSS 1,683 1S994 S.14 240,9S7 53,488 87,09S 22,170 30,198 17,312 (672) 4.S04 (7,827) (1,830) 109,612 (221) 98,181 S,297 65,997 68,082 95096 0 (7) 3.46 10.82 (7) 0.68 240 (7) 2.90 2.18 2.61 5.45 43.416 28,693 29,390 224,896 13.87 2.41 3.16 3.22 3.31 100,902 102,349 266,482 261,936 338224 (4) (4) (3) (20) (22) (4) (7) (3) (6) 0 153,798 (16,979) 349,384 122,294 46,381 17,982 77,674 (4,409) 249,S03 202,041 348,773 493,492 689833 4268386S.71 2.39 102206S 3.53 1505793 483728 2 990581483.35 2.52 75500 289 4.55 135955459 60455170 14,779,814,310.34 2.28 336,618,825 3.38 499,808,843 163,190,018 1.76 1.88 1.16 1.95 1.22 1.22 1.37 1,561,371 18,213,939 705,714 13,156,952 S,681,037 264,130 4272 1.78 1.90 1.35 2.22 1.74 2.30 1.37 1,577,170 18,443,987 823,60S 14,969,208 8,092,483 497,066 4266 15,799 230,048 117,891 1,812,256 2,411,446 232,936 6 1.74 39,587,416 1.95 44,407,785 4,820,369 2.08 1.91 5.48 4.88 2.42 3.81 2.37 2.21 6.91 6.91 6.91 3.74 2.45 2,187,222 11,149,920 40,201,1S8 50,572,534 4,560,976 39,406,287 23,257,930 13,390,129 271,9S4 13,211,616 318,037 10,446,502 4 709103 (592,040) 2,426,127 (11,212,462) (28,331,370) 12,S26 (21,226,976) 1,617,376 (1,534,311) (137,967) 6,434,329 32,818 (7,243,437) 2725384 3.60 213,683,368 2.42 TRANSMISSION PLANT 352.00 353.00 354.00 355.00 356.00 358.00 359.00 STRUCTURES AND IMPROVEMENTS STATION EQUIPMENT TOWERS AND FIXTURES POLES AND FIXTURES OVERHEAD CONDUCTORS AND DEVICES UNDERGROUND CONDUCTOR AND DEVICES ROADS AND TRAILS TOTAL TRANSMISSION PLANT 88,689,0S3.36 971,202,894.89 61,084,937.45 673,610,080.76 464,668,S22.67 21,603,999.00 312S22.87 60-R3 60-L1 75-R3 42-R2 70-R3 (10) (15) (19) (20) (17) 75-R3 2,281,172,011.00 60-R3 60-R1 70-R4 48-R1.5 65-R2.S 45-82.5 75-R3 (10) (15) (20) (30) (30) 0 0 DISTRIBUTION PLANT 361.00 362.00 364.00 365.00 366.00 367.00 368.00 369.00 370.00 370.01 370.02 371.00 373.00 STRUCTURES AND IMPROVEMENTS STATION EQUIPMENT POLES, TOWERS AND FIXTURES OVERHEAD CONDUCTORS AND DEVICES UNDERGROUND CONDUIT UNDERGROUND CONDUCTORS AND DEVICES LINE TRANSFORMERS SERVICES METERS METERS METERS- UOF INSTALLATIONS ON CUSTOMERS' PREMISES STREET LIGHTING AND SIGNAL SYSTEMS TOTAL DISTRIBUTION PLANT 390.00 391.00 391.10 GENERAL PLANT STRUCTURES AND IMPROVEMENTS OFFICE FURNITURE AND EQUIPMENT FULLY ACCRUED AMORTIZED 10S,225,734.30 582,697,649.20 733,477,308.27 1,036,683,564.75 188,322,24S.23 1,034,475,800.68 980,271,849.91 604,656,990.58 3,934,74S.51 191,151,343.71 4,601,496.24 278,952,768.57 191965374.51 48-L1 49-R1 40-R2 40-R1.5 4S-S4 28-R5 38-R2 49-R2.5 30-R4 30-R4 (15) (10) (11S) 18-82 3S-S0.5 (10) (10) 130,945,462.70 45-L1 (5) 9,222,470.50 7547413.88 20-86 20-86 6.56 6.56 20-86 20-86 6.56 6.56 (85) (10) (5) 0 (30) (15) (5) 5,936,416,871.46 TOTAL OFFICE FURNITURE AND EQUIPMENT 16,769,884.38 OFFICE FURNITURE AND EQUIPMENT - EDP FULLY ACCRUED AMORTIZED 5,569,448.26 33497447.88 TOTAL OFFICE FURNITURE AND EQUIPMENT - EDP 39,066,896.14 60-R2 46-R1 45-R2.S 44-R1.5 4S-S2.5 40-82 39-R2 42-R3 30-R4 30-R4 1S-S2.5 25-L1.5 30-R1 (15) (15) (100) (30) (15) (5) (5) (10) (15) (5) 1.52 2.33 3.95 2.15 2.43 1.76 2.54 1.96 3.41 10.28 0 7.62 (10) (10) 1.15 3.87 1,595,182 13,576,047 28,988,696 22,241,164 4,573,S02 18,179,311 24,875,306 11,855,818 133,987 19,645,945 350,8SS 3,203,065 7434487 2.64 156,653,365 (57,030,003) 3,172,809 45-R1.S (5) 2.42 3,172,226 (S83) 604,976 49509S 15-SQ 1S-SQ 0 6.67 503719 (604,976) 8624 503,719 (596,3S2) 0 4185S79 (365,345) 1988213 4,185,S79 1,622,869 12-2020 1,100,071 365,345 2197366 2,562,710 8-SQ 8-SQ 12.50 DUKE ENERGY PROGRESS COMPARISON OF CURRENT AND PROPOSED DEPRECIATION PARAMETERS, RATES AND ACCRUALS AS OF DECEMBER 31, 2016 VERSION 7 ORIGINAL COST ASOF ACCOUNT (1) DECEMBER 31, 2016 (2) PROBABLE RETIREMENT DATE (3) SURVIVOR CURVE (4) 392.00 TRANSPORTATION EQUIPMENT 101,478,640.37 11-L2 393.00 STORES EQUIPMENT FULLY ACCRUED AMORTIZED 697,860.04 2895001.58 25-86 25-86 TOTAL STORES EQUIPMENT 3,592,861.62 394.00 TOOLS.SHOPS AND GARAGE EQUIPMENT FULLY ACCRUED AMORTIZED 4,723,328.76 45155118.50 TOTAL TOOLS, SHOPS AND GARAGE EQUIPMENT 49,878,447.26 395.00 396.00 LABORATORY EQUIPMENT POWER OPERATED EQUIPMENT 397.00 COMMUNICATION EQUIPMENT FULLY ACCRUED AMORTIZED 137,363,591.78 88790650.99 TOTAL TOOLS, SHOPS AND GARAGE EQUIPMENT 226,154,242.77 398.00 MISCELLANEOUS EQUIPMENT FULLY ACCRUED AMORTIZED TOTAL MISCELLANEOUS EQUIPMENT TOTAL GENERAL PLANT CURRENT NET SALVAGE PERCENT (6) 10 NC-1002 PROBABLE RETIREMENT DATE (8) ANNUAL ACCRUAL ~ AMOUNT {6} {7} SURVIVOR CURVE (9) 11.58 11,746,964 11-L2 6.71 6.71 46,846 194336 20-SQ 20-SQ PROPOSED NET SALVAGE PERCENT (10) 10 ANNUAL ACCRUAL AMOUNT (12) {11} 10.29- 5.00 241,182 2.84 2.84 38-86 38-86 20-SQ 20-SQ 133,911 1280193 5.00 1,414,104 15-86 12-86 7,231,552.66 3,369,544.86 27-L0.5 27-L0.5 (3) (3) '5-R5 '5-R5 9.15 16.91 661,477 569,810 15-SQ 12-86 2.15 2.15 2,948,647 1,905,980 10-SQ 10-SQ 2.87 2.87 10,445,780 (1,301,184) 144692 (46,846) (496441 144,692 (96,490) 2257625 (133,911) 977432 2,257,625 6.67 91,851 678481 20-SQ 20-SQ 843,521 5.99 482,239 201,686 (179,238) (368,124) 0 10.00 8876500 (2,948,647) 6970520 8,876,500 4,021,873 4,854,627 3,204,302.23 23 669 300.73 INCREASE/ (DECREASE) {13} ~ 0 5.00 1184283 (91,851) 505802 26 873 602.96 770332 1184283 413951 605361135.72 27094086 31454329 4360243 DEPRECIABLE LAND RIGHTS 310.00 320.00 320.10 LAND RIGHTS ASHEVILLE UNIT 1 MAYO UNIT1 ROXBORO UNIT 1 ROXBORO UNIT 3 919,201.95 3,577,117.54 1,827,202.76 3037934.25 TOTAL ACCOUNT 310 9,361,456.50 LAND RIGHTS HARRIS UNIT 1 ROBINSON UNIT2 49,809,293.03 315919.74 TOTAL LAND RIGHTS 50,125,212.77 RIGHTS OF WAY BRUNSWICK UNIT 1 BRUNSWICK UNIT2 ROBINSON UNIT2 TOTAL RIGHTS OF WAY TOTAL ACCOUNT 320 9,724.11 51,363.07 6141.10 1.77 2.91 3.79 06-2031 06-2035 06-2032 06-2035 10-2046 07-2030 09-2036 12-2034 07-2030 3.09 16,264 104,055 69,326 94009 3.03 283,654 1.16 0.26 576,094 816 1.15 576,910 0.61 0.18 0.26 59 93 16 12-2027 06-2035 06-2028 06-2033 10-2046 07-2030 09-2036 12-2034 07-2030 100-R4 100-R4 100-R4 100-R4 100-R4 100-R4 100-R4 100-R4 100-R4 0.78 27,822 0 (16,264) (76,233) (69,326) (940091 0.30 27,822 (255,832) 1.21 600,551 24,457 (8161 1.20 600,551 23,641 0.89 87 28 0.17 68 (5) 16 0 67228.28 0.25 168 0.26 175 50,192,441.05 1.15 577,078 1.20 600,726 2,205 (20) 213 (84) (5) (286) 23,648 330.00 LAND RIGHTS WALTERS 80,796.94 06-2034 2.75 2,225 06-2034 110-R4 2.73 330.10 RIGHTS OF WAY BLEWETT MARSHALL TILLERY WALTERS 9,598.14 3,728.53 19,764.49 33333.15 06-2058 06-2050 06-2058 06-2034 3.09 2.94 2.86 297 565 2.75 918 06-2055 06-2035 06-2055 06-2034 110-R4 110-R4 110-R4 110-R4 1.41 2.71 903 TOTAL RIGHTS OF WAY 66424.31 2.84 1889 2.26 1500 (3891 147,221.25 2.79 4,115 2.52 3,705 (410) 56,813 06-2040 60-R4 2.51 51,427 (5,386) 06-2040 60-R4 2.76 69974 (2541 2.65 121,401 (5,640) 1.15 1.28 51.51 1,947,290 1,603 296,115 26672 (31,085) (201) (92,104) (98621 1.18 3025334 (3714871 TOTAL ACCOUNT 330 110 340.00 LAND RIGHTS H.F. LEE IC TURBINES (WAYNE COUNTY UNITS 10-13) 2,048,655.08 06-2040 2.77 340.10 RIGHTS OF WAY H.F. LEE IC TURBINES (WAYNE COUNTY UNITS 10-13) 2532367.27 06-2040 2.77 70228 TOTAL ACCOUNT 340 4,581,022.35 2.77 127,041 75-R3 1.17 55-R2 55-R2 50-R2 70.55 1,978,375 1,804 388,219 36534 1.32 3396821 350.10 360.00 360.10 389.10 RIGHTS OF WAY LAND RIGHTS RIGHTS OF WAY RIGHTS OF WAY TOTAL DEPRECIABLE LAND RIGHTS 169,323,400.45 107,521.37 23,133,065.13 51783.33 256897 911.43 1.66 1.66 75-R3 65-R3 65-R3 60-R3 2.22 2.82 1.49 105 279 15 RESERVE ADJUSTMENT FOR AMORTIZATION 391.00 393.00 394.00 OFFICE FURNITURE AND EQUIPMENT STORES EQUIPMENT TOOLS,SHOPS AND GARAGE EQUIPMENT 3,108,070 .., 172,193 2,051,679 .., 3,108,070 172,193 2,051,679 NC-1002 DUKE ENERGY PROGRESS COMPARISON OF CURRENT AND PROPOSED DEPRECIATION PARAMETERS, RATES AND ACCRUALS AS OF DECEMBER 31, 2016 VERSION 7 ACCOUNT (1) 395.00 397.00 398.00 ORIGINAL COST ASOF DECEMBER 31, 2016 PROBABLE RETIREMENT DATE SURVIVOR CURVE (2) (3) (4) CURRENT NET SALVAGE PERCENT (6) ANNUAL ACCRUAL ~ AMOUNT {6} {7} PROBABLE RETIREMENT DATE SURVIVOR CURVE (B) (9) PROPOSED NET SALVAGE PERCENT (10) ANNUAL ACCRUAL AMOUNT (12) ~ {11} LABORATORY EQUIPMENT COMMUNICATION EQUIPMENT MISCELLANEOUS EQUIPMENT (53,710) 10,319,683 .., 1574923 - TOTAL RESERVE ADJUSTMENT FOR AMORTIZATION TOTAL DEPRECIABLE ELECTRIC PLANT 23859662239.95 2.60 o Curve shown is interim survivor curve. Each facility in the account is assigned an individual probable retirement year. - *" 5 year Amortization of Adjusted Reserve related lo implementation of Amortization Accounting. For additions to new subaccounls related lo Account 392 Transportation Equipment the following survivor curves, net salvage estimates and depreciation rates should be utilized: Depreciation Subaccounl Passenger Cars and Station Wagons Light Trucks Medium Trucks Heavy Trucks Heavy Trucks I Power Equipped Tractors Trailers Life 5-S2.5 6-L3 8-L2 10-L2 10-L2 13-L3 17-L0.5 ~~ 19.00 15.83 11.88 9.50 9.50 7.31 5.59 620380516 3.15 INCREASE/ (DECREASE) {13} (53,710) 10,319,683 --~''~"~'~"~ 17172838 17172838 752522494 132141978 Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Adjust for post test year additions to plant in service For the test period ended December 31, 2016 NC-1100 Narrative E-1 Item 10 Adjustments Requirement Provide the detail work papers showing calculations supporting all accounting, proforma, end-of-period, and proposed rate adjustments in the rate application to revenue, expense, investment, and reserve accounts for the test year and ? complete detailed narrative explanation of each adjustment. including the reason why each adjustment!?. required. Explain all components used in each calculation. Index each calculation to the accounting, proforma, end-of-period, and proposed rate adjustment which it supports. Detailed Narrative Explanation of Adjustment This pro-forma adjusts depreciation expense, general taxes, income taxes, electric plant in service, accumulated depreciation and accumulated deferred income taxes to reflect other additions to plant in service. The impact to operating income was determined as follows: The adjustment to depreciation expense reflects a full year's level of depreciation on additions to plant in service by multiplying the projected additions to gross electric plant by depreciation rates based on the new depreciation study. The adjustment to general taxes reflects estimated annual property tax expense related to the additions to plant in service. Property taxes are estimated by multiplying the projected additions to gross electric plant by a North Carolina plus a South Carolina property tax rate. The impact to income taxes was determined by multiplying taxable income by the statutory tax rate. The impact to rate base was determined as follows: The adjustment to electric plant in service reflects additions projected to be placed in service by August 2017. The adjustment to accumulated depreciation reflects one year's worth of the depreciation expense adjustment. The adjustment to accumulated deferred income taxes reflects the impacts of bonus depreciation assuming 50% bonus depreciation and 13% utilization. Duke Energy Progress, LLC NC-1100 Docket No. E-2, Sub 1142 Adjust for post test year additions to plant in service For the test period ended December 31, 2016 (Dollars in thousands) Line No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Description Total NC Retail Source Pro Formas Impacting Income Statement Line Items $ Electric operating revenue Electric operating expenses: Operation and maintenance Fuel used in electric generation Purchased power and net interchange Wages, benefits, materials, etc. Depreciation and amortization General taxes Interest on customer deposits Income taxes Amortization of investment tax credit NC-1101 NC-1101 23,034 2,286 NC-1101 (9,384) Total electric operating expenses Sum LB through L 15 15,936 Operating income L4 - L17 $ 20 21 Notes: 22 Revenue: positive number increases revenue I negative number decreases revenue 23 Expense: positive number increases expense I negative number decreases expense 24 25 Pro Formas Impacting Rate Base Line Items 26 27 NC-1101 28 Electric plant in service $ 29 Accumulated depreciation and amortization NC-1101 30 Electric plant in service, net Sum L28 through L29 31 32 Add: Materials and supplies 33 34 Working capital investment Plant held for future use 35 36 37 Less: NC-1101 38 Accumulated deferred taxes Operating reserves 39 40 Customer deposits 41 42 Construction work in progress 43 44 Total impact to rate base Sum L30 through L42 $ 45 46 47 Note: Rate Base: positive number increases rate base I negative number decreases rate base (15,936) 650,998 (23,034) 627,964 (15,681) 612,283 NC-1101 Page 1of2 Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Adjust for post test year additions to plant in service For the test period ended December 31, 2016 (Dollars in thousands) Line No. 1 2 3 4 5 6 7 B 9 10 11 12 13 14 15 16 17 1B 19 20 21 22 23 24 25 26 27 2B 29 30 31 32 33 34 35 36 37 3B 39 40 41 42 43 44 45 46 47 4B 49 50 51 52 53 54 Description Total additions to gross electric plant: Fossil Hydro Other Production Nuclear Transmission Distribution General Intangible Total additions to gross electric plant Electric Plant $ $ 32,B50 9,B69 115,474 532,671 BB,704 167,206 16,B16 34,4BB 99B,077 Depreciation Rate [1] [1] [1] [1] [1] [1] [1] [1] 3.B3% 3.56% 4.55% 2.73% 1.95% 2.64% 5.20% 20.00% Summa!Y of impacts to rate base Additions to gross electric plant: Production (L2 + L3 + L4+L5) Transmission (L6) Distribution (L7) General (LB) Intangible (L9) Impact to electric plant in service (Sum L 14 through L 1B) Accumulated depreciation & amortization: Production (-L2 - L3 - L4 - L5) Transmission (-L6) Distribution (-L7) General (LB) Intangible (L9) Impact to accumulated depreciation & amortization (Sum L22 through L26) Net electric plant: Production (L 14 + L22) Transmission (L 15 + L23) Distribution (L 16 + L24) General (L 17 + L25) Intangible (L 1B + L26) Impact to net plant (Sum L30 through L34) Accumulated deferred income truces (resulting from additional bonus depreciation): Tax depreciation assuming 50% bonus depreciation 13% utilized Production (L 14 x 50%) x 13% utilized Transmission (L 15 x 50%) x 13% utilized Distribution (L 16 x 50%) x 13% utilized General (L 17 x 50%) x 13% utilized Intangible (L 1B x 50%) x 13% utilized Total tax depreciation (Sum L39 through L43) Accumulated deferred income true: Production (-L39 x L 77) Transmission (-L40 x L 77) Distribution (-L41 x L77) General (-L42 x L77) Intangible (-L43 x L77) Impact to accumulated deferred income taxes (Sum L47 through L51) Impact to rate base (L35 + L52) Total Carolinas Depreciation [2] [2] [2] [2] [2] [2] [2] [2] $ $ NC Retail Allocation Total NC Retail 1,25B 351 5,254 14,542 1,730 4,414 B74 6,B9B 35,321 $ $ $ $ $ $ $ $ $ 690,B63 BB,704 167,206 16,B16 34,4BB 99B,077 60.600B% 59.1442% B6.6059% 72.1559% 66.4632% (21,405) (1,730) (4,414) (B74) {6,B9B) (35,321) 60.600B% 59.1442% B6.6059% 72.1559% 66.4632% [3] [4] [5] [6] [7] $ $ [3] [4] [5] [6] [7] $ $ 669,45B B6,974 162,792 15,942 27,590 962,756 $ 44,906 5,766 10,B6B 1,093 2,242 64,B75 $ $ (16,642) (2,137) {4,02B) (405) (B31) (24,043) $ 93B,713 $ $ 60.600B% 59.1442% B6.6059% 72.1559% 66.4632% [3] [4] [5] [6] [7] $ 41B,66B 52,464 144,B10 12,134 22,922 650,99B (12,972) (1,023) {3,B23) (631) {4,5B5) (23,034) 405,696 51,441 140,9B7 11,503 1B,337 627,964 27,213 3,410 9,413 7B9 1,490 42,315 $ (10,0B5) (1,264) (3,4BB) (292) (552) (15,6B1) $ 612,2B3 NC-1101 Page 2 of 2 Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Adjust for post test year additions to plant in service For the test period ended December 31, 2016 (Dollars in thousands) Line No. 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 Total Carolinas Description Depreciation and amortization: Production (-L22) Transmission (-L23) Distribution (-L24) General (-L25) Intangible (-L26) Impact to depreciation and amortization (Sum L57 through L61) $ $ 21,405 1,730 4,414 874 6,898 35,321 NC Retail Allocation 60.6008% 59.1442% 86.6059% 72.1559% 66.4632% Total NC Retail [3] [4] [5] [6] [7] $ $ 12,972 1,023 3,823 631 4,585 23,034 General truces: Property true rate - North Carolina Property true rate - South Carolina Property true rate - Combined North Carolina and South Carolina $ $ $ 0.002220 [8] 0.001421 [8] 0.003641 [8] Production ((L2 + L3 + L4 + L5) x L68) Transmission (L6 x L68) Distribution (L7 x L68) General (LB x L68) Impact to general taxes (Sum L64 through L67) $ 2,515 323 609 61 3,508 Taxable income (-L56 - L68) Statutory tax rate Impact to income taxes (L70 x L71) $ Impact to operating income (L 70 - L72) $ [1] [2] [3] [4] [5] [6] [7] [8] [9] NC-1102 - Duke Energy Carolinas -Additions to Plant, Col K; Lines 28 through 35 NC-1002 - New Depreciation Rates Allocation Factor - DPALL Allocation Factor- DTALL Allocation Factor - RB PLT 0 DI Allocation Factor - RB PLT 0 GN Allocation Factor - PTDG NC-0901 -Annualize property taxes on year end plant balances, Line 16 NC-0104 - Composite True Rate, Line 10 Note: some totals may not foot due to rounding. $ $ (38,829) 37.0599% [9] (14,390) (24,439) 60.6008% 59.1442% 86.6059% 72.1559% [3] [4] [5] [6] $ $ 1,524 191 527 44 2,286 $ (25,320) 37.0599% (9,384) $ (15,936) $ $5.99 JEQEEQ 53.. Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Adjust for post test year additions to plant in service For the test period ended December 31, 2016 (Dollars in thousands) NC-1102 Page 1of1 c A G Duke Energy Progress - Additions to Plant L= Line ~ 1 2 9 10 11 12 13 14 15 16 17 18 19 20 21 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 Forecast Jan-17 Descriotion B1 - Fossil Steam Plants B4 - Ash Strat and Mgmt BA- Fossil Steam Plants BB - Cat- Nuke Steam Plant BC- Hydro BE - Cat- Enviro Nuke Plant BG - Gust - Other Production Plant BY - Solar Energy Production CC - Capital Challenge EE - Transmission Right Of Way FF - F/H - Transmission Stations GG - F/H - Transmission Lines HA- Distribution Substation Lots HB - Distribution Substation HC - Customer Substations HW - Distribution Highway Jobs IK - Distrib Lines OH/UG (Line Ext) LA - Distribution RIW Clearing RR - Communication 0th Prod RR - Communication General SA- Gust- Gen. Bldg. & Oper. Centers TA- Gust- Gen BLDG/Land/Furniture TB - Gust- Equipment and Tools TD - Gust - Office Equipment VS - Gust - Intangible Plant - Software Total Fossil Hydro Other Production Nuclear Transmission Distribution General Intangible Total [1] NC-1103 - Line 7 percentage x Col I L32; and NC-1103 Line 7 x (Col I L33 - $24.7M) Source: Duke Energy Forecasting Note: some totals may not foot or compute due to rounding. N OP OP G T D D OP G G G G G I OP N T D G I Forecast Feb-17 (0) $ $ 494 $ $ 73,515 $ $ 57 $ $ 448 $ $ 2 $ 4,491 $ 3,572 1,065 $ $ 2,221 57 $ $ 102 $ 27,784 $ 256 $ $ 4 1,766 $ $ 188 $ $ $ 4,418 $ $ $ $ 120,438 $ 98,296 $ 494 $ $ 446 $ 73,572 $ 8,065 $ 31,486 $ 1,958 $ 4,418 $ 120,438 41 4 4,813 3,849 1,053 2,621 74 471 $ 30,765 $ $ $ $ $ $ $ $ 259 5 1,252 303 143 501 11,370 $ 170,915 5,273 $ $ 29 3,192 $ $ 42 $ (13,750) $ 13 3,965 $ $ 4,468 1,044 $ $ 2,886 199 $ $ 182 $ 35,999 $ 320 5 $ $ 5 $ 16,789 $ 333 5 $ $ 4,074 $ 11,932 $ 259,289 $ $ $ $ 52,184 8,666 $ 35,244 $ 1,702 $ $ 501 $ $ $ $ $ 98,296 $ $ Forecast Forecast ~ ~ $ $ $ $ 52,143 $ $ $ $ $ $ $ $ $ $ $ $ Forecast Mar-17 11,370 5,273 3,238 170,944 8,446 40,629 7,456 11,932 259,289 29,646 22,354 20 14 Forecast Jun-17 7,209 13,777 143,641 4,597 10 5,713 7 7 5,159 5,623 1,045 2,375 3,721 5,340 1,041 1,986 74 169 68 274 608 198 32,363 33,014 32,684 321 321 5 637 336 228 5 459 337 166 377 5 5 68 65 71,286 29,666 10,232 36,519 1,207 22,369 10,789 37,097 68 966 65 77,692 71,286 8,938 337 826 5,667 17,375 240,528 20,986 4,597 5,927 143,651 9,076 36,894 2,023 17,375 240,528 Forecast ~ ~ $ $ $ $ 30,689 $ $ 7 $105,153 209 $ (13,750) $ 16 $ 5,774 4,450 1,047 2,546 77,692 Forecast Jul-17 Total through 5 $ 16,008 4,908 1,032 $ $ $ $ $ 939 324 292 $ 31,122 $ 302 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 5 244 337 228 64 $191,659 $ $ $ 9,584 $ $ 5 $ 710 $ $ $ 7 $ 6,846 $ 6,239 $ 1,044 $ 880 $ (7) $ 219 $ 35,253 $ 396 $ $ 5 $ 182 $ 337 $ 166 $ $ 64 $ $ 61,931 $ $ $105,153 $ 30,696 $ 20,921 $ 34,012 $ $ 814 64 $191,659 710 9,589 13,093 $ 37,785 $ $ 690 64 $ 61,931 Customer Growth Ref. [1] Additions Adjusted Projected Total through ~ (0) 7,703 25,147 532,488 9,869 182 114,768 897 (27,500) 62 50,777 38,448 8,371 16,455 1,398 1,907 258,983 2,552 9 37 30,268 2,319 1,951 9,741 34,488 $ 1,121,120 $ $ $ $ $ $ $ $ 32,850 9,869 115,474 532,671 89,287 289,666 16,816 34,488 $ 1,121,120 (583) (122,460) $ (123,043) 32,850 9,869 115,474 532,671 88,704 167,206 16,816 34,488 998,077 Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Adjust for post test year additions to plant in service For the test period ended December 31, 2016 NC-1103 Page 1 of 1 Duke Energy Progress - Transmission and Distribution Capital Budget - Excluding SmartGrid - 12 Months Ended Dec 30. 2017 Line No. 1 2 3 4 5 Business Unit Description Customer Additions/Lighting Capacity Maintenance Special Projects/Other Total Electric Transmission Plant 930,344 $ 38,859,843 95,923,035 6,800,000 $ 142,513,222 Electric Distribution Plant $ 172,468,987 88,593,836 112,132,822 $ 373, 195,645 Grand Total 173,399,331 127,453,679 208,055,857 6,800,000 $ 515,708,867 $ 6 7 Percentage of Customer Additions/Lighting (L 1 I L5) 0.65% 46.21% 8 9 10 Customer Additions/Lighting: capital spending to directly serve new customers and outdoor street lighting 11 12 13 14 15 16 17 Capacity: capital spending to increase the overall capacity of the T&D system, such as new/or capacity increases to T&D circuits and substations Maintenance: capital spending to replace deteriorated units of property such as poles, transformers, cable, etc, capital to maintain the reliability of the T&D system, relocation of T&D facilities for highway projects and other utilities. 18 19 Source: Melissa Culbreth, Finance Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Adjust for Asheville base load CWIP For the test period ended December 31, 2016 NC-1200 Narrative E-1 Item 10 Adjustments Requirement Provide the detail work papers showing calculations supporting all accounting, proforma, end-of-period, and proposed rate adjustments in the rate application to revenue, expense, investment, and reserve accounts for the test year and ? complete detailed narrative explanation of each adjustment. including the reason why each adjustment!?. required. Explain all components used in each calculation. Index each calculation to the accounting, proforma, end-of-period, and proposed rate adjustment which it supports. Detailed Narrative Explanation of Adjustment This pro-forma adjusts the CWIP balance in rate base for the Asheville CC base load generation plant currently under construction. The projected balance was provided by project management. The plant is scheduled to be operational in December 2019. Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Adjust for Asheville base load CWIP For the test period ended December 31, 2016 (Dollars in thousands) Line No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 NC-1200 Description Total NC Retail Source Pro Formas Impacting Income Statement Line Items Electric operating revenue $ Electric operating expenses: Operation and maintenance Fuel used in electric generation Purchased power and net interchange Wages, benefits, materials, etc. Depreciation and amortization General taxes Interest on customer deposits Income taxes Amortization of investment tax credit Total electric operating expenses Sum LB through L 15 Operating income L4 - L17 $ Notes: Revenue: positive number increases revenue I negative number decreases revenue Expense: positive number increases expense I negative number decreases expense Pro Formas Impacting Rate Base Line Items Electric plant in service Accumulated depreciation and amortization Electric plant in service, net $ Sum L28 through L29 Add: Materials and supplies Working capital investment Plant held for future use Less: Accumulated deferred taxes Operating reserves Customer deposits NC-1201 Construction work in progress Total impact to rate base 116,838 Sum L30 through L42 $ Note: Rate Base: positive number increases rate base I negative number decreases rate base 116,838 Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Adjust for Asheville base load CWIP For the test period ended December 31, 2016 (Dollars in thousands) Line No. Description 1 Summary of impacts to rate base 2 Projected CWIP Balance 8/31/2017 NC-1201 Total Carolinas $ [1] Project Management Forecast from Generation and Regulatory Strategy [2] DPALL Allocation Factor Note: some totals may not foot due to rounding. 192,800 NC Retail Allocation 60.6008% [2] Total NC Retail $ 116,838 Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Adjust for transmission merger mitigation project For the test period ended December 31, 2016 NC-1300 Narrative E-1 Item 10 Adjustments Requirement Provide the detail work papers showing calculations supporting all accounting, proforma, end-of-period, and proposed rate adjustments in the rate application to revenue, expense, investment, and reserve accounts for the test year and ? complete detailed narrative explanation of each adjustment. including the reason why each adjustment!?. required. Explain all components used in each calculation. Index each calculation to the accounting, proforma, end-of-period, and proposed rate adjustment which it supports. Detailed Narrative Explanation of Adjustment This pro forma adjusts gross plant.for the addback of a transmission merger mitigation project to the test year. The Greenville-Kinston Dupont 230 kV transmission line would have been built by the time rates are effective in this case without regard to merger requirements. This transmission line was constructed and placed in service in 2014 in order to satisfy Federal Energy Regulatory Commission ("FERG") market mitigation requirements related to the Duke-Progress merger (Docket Nos. E-2, Sub 998 and E-7, Sub 986). However, the line was previously in the Company's 10-year site plan to be constructed and placed in service in June 2017. Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Adjust for transmission merger mitigation project For the test period ended December 31, 2016 (Dollars in thousands) Line No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 NC-1300 Description Total NC Retail Source Pro Formas Impacting Income Statement Line Items Electric operating revenue $ Electric operating expenses: Operation and maintenance Fuel used in electric generation Purchased power and net interchange Wages, benefits, materials, etc. Depreciation and amortization General taxes Interest on customer deposits Income taxes Amortization of investment tax credit Total electric operating expenses Sum LB through L 15 Operating income L4 - L17 $ Notes: Revenue: positive number increases revenue I negative number decreases revenue Expense: positive number increases expense I negative number decreases expense Pro Formas Impacting Rate Base Line Items Electric plant in service Accumulated depreciation and amortization Electric plant in service, net NC-1301 $ 18,133 18,133 Sum L28 through L29 Add: Materials and supplies Working capital investment Plant held for future use Less: Accumulated deferred taxes Operating reserves Customer deposits Construction work in progress Total impact to rate base Sum L30 through L42 $ Note: Rate Base: positive number increases rate base I negative number decreases rate base 18 133 NC-1301 Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Adjust for transmission merger mitigation project For the test period ended December 31, 2016 (Dollars in thousands) Line No. Description 1 Total adjustment to gross electric plant: 2 Greenville-Kinston Dupon 230kV Transmission line Total DEP $30,658,521 [1] Total NC Retail 59.14% [2] $ 18,132,733 3 4 Total additions to gross electric plant $30,658,521 [1] Provided by Asset Accounting [2] Allocation Factor- DTALL [3] Note: Depreciation on this asset is included in the depreciation annualization adjustment. Note: some totals may not foot due to rounding. $ 18,132,733 Duke Energy Progress, LLC. Docket No. E-2, Sub 1142 Adjust nuclear decommissioning expense For the test period ended December 31, 2016 NC-1400 Narrative Detailed Narrative Explanation of Adjustment The pro forma adjust expenses and taxes to reflect several updates to model assumptions in the Company's 2014 decommissioning study. The impact to income taxes is determined by multiplying taxable income by the statutory tax rate. Duke Energy Progress, LLC. NC-1400 Docket No. E-2, Sub 1142 Adjust nuclear decommissioning expense For the test period ended December 31, 2016 (Dollars in thousands) Line No. 1 2 3 4 5 6 7 8 Total NC Retail Description Pro Formas Impacting Income Statement Line Items Electric operating revenue Electric operating expenses: Operation and maintenance Fuel used in electric generation Purchased power and net interchange Wages, benefits, materials, etc. Depreciation and amortization General taxes Interest on customer deposits Income taxes Amortization of investment tax credit $ 9 10 11 NC-1401 9,902 12 13 14 NC-1401 (3,670) 15 16 17 Total electric operating expenses Sum L8 through L 15 6,232 18 (6,232) $ L4 - L 17 19 Operating income 20 21 Notes: 22 Revenue: positive number increases revenue I negative number decreases revenue Expense: positive number increases expense I negative number decreases expense 23 Duke Energy Progress, LLC. Docket No. E-2, Sub 1142 Adjust nuclear decommissioning expense For the test period ended December 31, 2016 (Dollars in thousands) NC-1401 Page 1 of 1 Line ~ 1 2 3 4 Test year decommissioning expense - NCR Qualified Total Test year expense 6 7 8 Decommissioning expense per Study Udpate - NCR Qualified Total expense per Study Update 10 Decommissioning expense adjustment 11 12 Statutory tax rate 13 lmpacttoincometaxes(-L12xl18) 14 15 Impact to operating income (-L 12 - L19 + L 16) 6,681 6,681 [1] 16,583 [2] 16,583 9,902 37.06% [3] (3,670) (6,232) [1] Per Books Cost of Service amount including a June 2016 accounting entry less amount recovered through JMR rider of $1,566 [2] Provided by Accounting based on revised study. Full Requirement of $19,590,285 less amount recovered through JMR rider of $3,007,593 [3] NC-0104- Composite Tax Rate, Line 10 Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Adjust reserve for end of life nuclear costs For the test period ended December 31, 2016 E-1 Item 10 Adjustments Requirement Provide the detail work papers showing calculations supporting all accounting, pro forma, end-ofperiod, and proposed rate adjustments in the rate application to revenue, expense, investment, and reserve accounts for the test year and? complete detailed narrative explanation of each adjustment. including the reason why each adjustment l.? required. Explain all components used in each calculation. Index each calculation to the accounting, pro forma, end-of-period, and proposed rate adjustment which it supports. Detailed Narrative Explanation of Adjustment Nuclear Fuel In the last DEP NC rate case the Company increased test period expenses to add an annual accrual amount of approximately $4.1 million on an NC retail basis to accumulate a reserve for expenses related to the last core of nuclear fuel at the end of life (EOL) of each nuclear unit. The cost of the last nuclear fuel core is not captured in the costs of decommissioning and is not expected to have any salvage value. As this last core of nuclear fuel would benefit the ratepayers served prior to the EOL of the nuclear plant, creating a reserve to accrue the expense would create a better matching of cost and benefit for ratemaking purposes. The annual accrual amount was determined by dividing the projected remaining value of the last core of nuclear fuel at the EOL of each unit by the number of years remaining in the unit's life and summing this result for DEP's four nuclear units. The Company proposed that the annual accrual amount approved in that proceeding be subject to review and adjustment, if needed, in each future general rate case before the EOL of the plant. The reserve is an offset to rate base in the cost of service. In the current rate case adjustment the reserve and annual amortization expense has been adjusted based on a review of the current reserve requirements. Nuclear Materials and Supplies Similar to the discussion above for the final nuclear fuel core, the Company proposed the establishment of a reserve with an annual accrual of $3.9 million, on a NC retail basis, for EOL nuclear materials and supplies (M&S). The nuclear M&S inventory was estimated to have a 20% transferrable or salvage value at the time of decommissioning. The accrual amount was determined by dividing the projected inventory balance at the EOL of each unit by the number of years remaining in the unit's life. DEP assumed in its computations that the March 31, 2012, balance of nuclear M&S would be the projected inventory balance at the EOL of each unit. In the current rate case adjustment the reserve and annual amortization expense has been adjusted based on a review of the current reserve requirements. NC-1500 Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Adjust reserve for end of life nuclear costs For the test period ended December 31, 2016 (Dollars in thousands) Line No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 Description Total NC Retail Source Pro Formas Impacting Income Statement Line Items Electric operating revenue $ Electric operating expenses: Operation and maintenance Fuel used in electric generation Purchased power and net interchange Wages, benefits, materials, etc. Depreciation and amortization General taxes Interest on customer deposits Income taxes Amortization of investment tax credit NC-1501 5,731 NC-1501 {2,124) Total electric operating expenses Sum L8 through L15 Operating income L4 - L17 3,607 $ (3,607} Notes: Revenue: positive number increases revenue I negative number decreases revenue Expense: positive number increases expense I negative number decreases expense Pro Formas Impacting Rate Base Line Items Electric plant in service Accumulated depreciation and amortization Electric plant in service, net Add: Materials and supplies Working capital investment Plant held for future use Less: Accumulated deferred taxes Operating reserves Customer deposits $ Sum L28 through L29 NC-1501 {8,070) NC-1501 $2,991 Construction work in progress Total impact to rate base Sum L30 through L42 $ Note: Rate Base: positive number increases rate base I negative number decreases rate base (5,079} Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Adjust reserve for end of life nuclear costs For the test period ended December 31, 2016 (Dollars in thousands) Line No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 NC-1501 Page 1 of 1 Total NC Retail Description Impact to Income Statement Line Items Adjustment for end of life reserve for nuclear fuel Adjustment for end of life reserve for nuclear materials and supplies Impact to depreciation and amortization (L2 + L3) $ (1,045) [1] 6,776 [2] 5,731 Statutory tax rate Impact to income taxes (-L4 x L6) Impact to operating income (-L4 - L7) $ $ 37.0599% [3] (2, 124) {3,607) $ (4, 149) [4] (3,921) [5] (8,070) Impact to Rate Base Line Items Adjustment for end of life reserve for nuclear fuel Adjustment for end of life reserve for nuclear materials and supplies Impact to working capital investment (L 11 + L 12) $ Impact to ADIT Impact to rate base (L 13) [1] [2] [3] [4] [5] [6] NC-1504 Line 23 NC-1502 Line 19 NC-0104 - Composite Tax rate, Line 10 NC-1504- Line 28 NC-1502 - Line 24 NC-1502 - Line 25 + NC - 1504 Line 29/1000 $2,991 $ (5,079) [6] NC-1502 Page 1of1 Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Adjust reserve for end of life nuclear costs For the test period ended December 31, 2016 (Dollars in thousands) Adjustment for End of Life Reserve for Nuclear Materials and Supplies Line No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Brunswick 1 Brunswick2 Harris Robinson Inventory as of December 31, 2016 End of life inventory value estimate (no escalation) +L 1 % of M&S with salvage value or transferrable Nuclear M&S inventory base for amortization (L3 X (1-L4) 101,723 [1] 101,723 20% 81,378 101,723 [1] 101,723 20% 81,378 127,456 [1] 127,456 20% 101,965 104,700 104,700 20% 83,760 NC Retail Allocation percent (DPALL) NC Nuclear M&S inventory base for amortization (L5 x L7) Less projected inventory reserve 12/31/17 (NC 1503 L4) NC Nuclear Reserve Required at 1/1/18 (L8-L9) 0.60601 49,316 4,952 44,364 0.60601 49,316 5,342 43,973 0.60601 61,792 3,704 58,087 0.60601 50,759 3,974 46,785 Projected decommissioning date of plant 09/08/36 [2] 12/27/34 [2] 10/24/46 [2] 07/31/30 Date new rates effective Years of remaining plant life ((L 12 - L 14) / 365.25 days) 01/01/18 [3] 19 01/01/18 [3] 17 01/01/18 [3] 29 01/01/18 13 NC Retail Annual expense for reserve (L 10 I L 15) Test Year Expense (NC 1503 L2) NC Amortization Expense Adjustment (L 17-L 18) Rate Base Impacts NC End of Life Nuclear M&S Reserve 12/31/2016 NC Expected M&S Reserve 12/31/2017 Reserve Adjustment (Line 25 - Line 26) ADIT Adjustment (Line 27 x .370599) [1] [2] [3] [4] [5] Accounting NC-1504 - Line 10 NC-1504 - Line 18 Account 0254022 -NC-1503 - Line 4 $ 2,374 1,080 1,293 $ 2,588 1,166 1,423 $ 2,016 808 1,208 $ 3,719 867 2,852 435,601 10,697 3,921 6,776 (14,051) [4] (17,972) [5] (3,921) 1,453 NC-1503 Page 1of1 Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Adjust reserve for end of life nuclear costs For the test period ended December 31, 2016 Adjustment for End of Life Reserve for Nuclear Materials and Supplies Line No. Description Brunswick 1 Brunswick 2 1,080,366 55 4,951,679 1,165,600 55 5,342,334 1 2 3 4 Current Annual Amortization Nuclear Materials and Supplies NC [1] Number of months from 6/1/2013 to 12/3112017 [2] Projected NC Nuclear M&S Reserve Balance 12/3112017 [1] Account 0407375 [2] Last rate case rates effective 6/1/2013 to 12/3112017 808,189 55 3,704,199 867,059 55 3,974,021 3,921,214 17,972,232 Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Adjust reserve for end of life nuclear costs For the test period ended December 31, 2016 NC-1504 Page 1of1 Adiustment for End of Life Reserve or Nuclear Fuel (a) Row 1 2 3 4 5 (b) Description Projection of core's end-of cycle value as of date Final Refueling Cycle Months Normal Refueling Cycle Months Adjustment Ratio for Shorter Last Cycle Adjustment Ratio for Last Cycle Loading & Operating Efficiencies Source Nuclear Engineering Nuclear Engineering Nuclear Engineering Nuclear Engineering (c) Total 213,385,289 (e) Brunswick2 (d) Brunswick 1 (g) Robinson (f) Harris 62,169,642 31112034 18 24 59,693,770 212512033 18 24 55,372,971 10/3/2037 12 18 36,148,905 9/11/2026 18 24 Row3/Row4 75% 75% 67% 75% Nuclear Engineering 75% 75% 75% 75% 6 7 8 Row 1xRow5x Row 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Adjusted End of Cycle Value Projected Decommissioning Date of Plant Nuclear Fuel Annual Escalation Rate (applies to post forecast period) Adjusted End of Cycle Value, Escalated to Decommissioning Date NC Retail Allocation Factor Adjusted End of Cycle Value, Escalated to Decommissioning DateNC Retail Less Expected NC Retail Reserve Balance 1213112017 NC Retail Remaining Reserve Required at rates effective date 7 116,568,414 Accounting Nuclear Engineering Row9x(1+Row11) A ((Row 10 - Row 2) I 365.25) E1ALL 33,577,746 27,686,486 20,333,759 91812036 1212712034 1012412046 713112030 2.0% 2.0% 2.0% 2.0% 126,667,842 36,762,945 0.6081 34,819,886 0.6081 33, 125, 158 0.6081 21,959,853 0.6081 Row 12 x Row 13 77,026,922 22,355,607 21,174,030 20, 143,463 13,353,823 Reg Planning 19,015,665 5,375,906 5,719,809 3,449,749 4,470,200 Row 14 - Row 15 58,011,258 16,979,701 15,454,221 16,693,713 8,883,622 Date New Rates Effective Years of Remaining Plant Life NC Annual Expense for Reserve Reg Planning (Row 10 - Row 18) I 365.25 Row16/Row19 3,104,269 NC Test Year Annual Expense to Reserve NC Annual Expense Change Account 0407342 Row 20 - Row 22 4, 148,872 {1,044,604) Account 0254021 (14,866,789) -Line 15 Line 27 - Line 26 -Line 28 x .370599 (19,015,665) (4, 148,876) 1,537,569 Rate Base Impacts: NC End of Life Nuclear Fuel Reserve 12/31/2016 NC Expected Nuclear Fuel Reserve 12/31/2017 Reserve Adjustment ADIT Adjustment 34,970,424 11112018 19 908,694 11112018 17 909,841 11112018 29 579,434 11112018 13 706,300 1,172,925 (264,231) 1,247,958 (338,117) 752,673 (173,239) 975,316 (269,016) Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Adjust coal inventory For the test period ended December 31, 2016 NC-1600 Narrative E-1 Item 10 Adjustments Requirement Provide the detail work papers showing calculations supporting all accounting, proforma, end-of-period, and proposed rate adjustments in the rate application to revenue, expense, investment, and reserve accounts for the test year and ? complete detailed narrative explanation of each adjustment. including the reason why each adjustment!?. required. Explain all components used in each calculation. Index each calculation to the accounting, proforma, end-of-period, and proposed rate adjustment which it supports. Detailed Narrative Explanation of Adjustment This pro forma adjustment reflects the Company's requirement for a level of coal inventory equal to the coal needed for a 40 day full load burn priced at the projected average delivered coal cost for the upcoming fuel billing period as discussed by Witness Daji in Docket No. E-2, Sub 1107. Days of coal inventory on the storage piles refers to "full load burn days". Therefore, one "day" of supply is equal to how much coal would be burned at any given generating unit if it was to run at full load for 24 hours straight. The current full load burn for the entire coal-fired fleet in the Carolinas is 36,049 tons per day which means that if there are 40 days of supply on the system, then there are 1,441,960 tons (40 * 36,049) on the storage piles. The Company does not use "average" burn to report how many "days" of inventory is in storage because the average burn for any given period can vary greatly due to many factors and it can over-state the amount of inventory in storage. For example, the biggest risk would be to run out of coal during a hot summer when the entire coal-fired fleet is needed to run at full load. By reporting the inventory using "full load burn", we have stated how many days our units can run during a critical time when they are all expected to be running at full load. NC-1600 Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Adjust coal inventory For the test period ended December 31, 2016 (Dollars in thousands) Line No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 Description Total NC Retail Source Pro Formas Impacting Income Statement Line Items Electric operating revenue $ Electric operating expenses: Operation and maintenance Fuel used in electric generation Purchased power and net interchange Wages, benefits, materials, etc. Depreciation and amortization General taxes Interest on customer deposits Income taxes Amortization of investment tax credit Total electric operating expenses Sum L8 through L15 Operating income L4 - L17 $ Notes: Revenue: positive number increases revenue I negative number decreases revenue Expense: positive number increases expense I negative number decreases expense Pro Formas Impacting Rate Base Line Items Electric plant in service Accumulated depreciation and amortization Electric plant in service, net Add: Materials and supplies Working capital investment $ Sum L28 through L29 NC-1601 (22,886) Less: Accumulated deferred taxes Operating reserves Construction work in progress Total impact to rate base Sum L30 through L42 $ Note: Rate Base: positive number increases rate base I negative number decreases rate base (22,886) NC-1601 Page 1 of 1 Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Adjust coal inventory For the test period ended December 31, 2016 (Dollars in thousands) Line No. 1 2 3 4 5 6 7 8 9 10 Total Carolinas Description NC Retail Allocation Total NC Retail Estimated full load burn - excluding retirements (December 2016) Target number of days inventory Target coal inventory balance at December 31, 2016 (tons) (L2 x L3) Projected average delivered coal costs per ton $ $ Projected coal inventory balance (L4 x (L5 / 1,000)) 36,049 [1] 40 [1] 1,441,960 76.11 [2] 109,748 60.8102% [3] $ 66,738 Actual coal inventory balance $ 147,383 [4] 60.8102% [3] $ 89,624 Impact to materials and supplies (coal inventory) (L6 - LB) $ (37,636} [1] [2] [3] [4] E-1 Item 46E, Coal Consumption and Inventory Data NC-1602 - Docket No. E-2, Sub 1107, Direct Testimony of Swati V. Daji, Page 7, Line 4 Allocation Factor - E1ALL E-1 Item 2, Working Trial Balance -Accounts 0151130 and 0151131 $ (22,886} Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Adjust coal inventory For the test period ended December 31, 2016 NC-1602 Page 1of1 (Dollars in thousands) Direct Testimony of Swati V. Daji Docket E-2, Sub 1107 Page 7 excerpt >- 0. 0 were above targcl at the end of the tcsl period. Future inventory lewis are 2 dependent on actual versus projected cuul burns und actual conl deliveries based on 3 perfonnance of the rnilniads. 4 projects average delivered coal costs of approximately $76.11 per ton for the hilling 5 period compared to $80. 74 per ton in the test period. This cost, however, is subject 6 lo change basi..'tl on, hul nol limited to, lhc following factors: ( 1) exposure to market 7 prices and their impact on open eoal positions; (2) the amount of non-Central 8 Appalachian coal DEP is able lo consume; (3) pcrlbnnancc of contmcl deliveries hy 9 suppliers and railroads, which may not occur despite DEP's strong contract 10 compliance monitoring process; (4) changes in tr.insportalion rates; and (5) potential Combining coal and transportalion costs, DEP 0 ..J ot( 0 ii: u. 0 ....-----82 82 164 (a) November balance as adjusted for March true-up Cost of Capital Assumed Capital Structure: Long-Term Debt Common Equity ADIT 81 81 80 80 80 79 79 79 78 78 78 77 639 Total 82 82 81 81 80 80 80 79 79 79 78 78 78 77 803 Deferred Cost of Capital-Equity 2016 2017 328 327 655 324 323 321 320 319 317 316 315 313 312 311 309 2,555 ~ 328 327 324 323 321 320 319 317 316 315 313 312 311 309 3,210 Deferred Depreciation Exp 2016 Deferred O&M Exoense 2017 Total 2016 63,576 130 130 130 130 130 130 130 130 130 130 130 130 1,041 130 130 130 130 130 130 130 130 130 130 130 130 130 130 1,301 2017 Total f------- f------- 130 130 260 63,576 63,576 63,576 Deferred Tax on Deferred Costs 2016 2017 Total (198) (198) (197) (196) (196) (195) (195) (194) (193) (193) (192) (191) (1,569) (23,761) (200) (198) (198) (197) (196) (196) (195) (195) (194) (193) (193) (192) (191) (25,530) >-------.(23,761) (200) (23,961) Pre-Tax Return on Deferred Costs-Debt Pre-Tax Return on Deferred Costs-Equity 2016 2016 2017 72 72 73 73 74 75 75 76 76 77 78 78 79 79 599 Total 72 145 147 148 149 150 152 153 154 155 156 158 159 1,271 2017 289 289 291 294 296 298 301 303 306 308 310 313 315 317 2,397 Total 289 580 587 592 597 602 607 611 616 621 625 630 635 5,081 Deferred Asset Total 2016 2017 64,116 900 65,016 899 901 901 903 905 905 907 909 909 911 913 913 7,232 Total 64,116 900 1,260 1,268 1,271 1,276 1,281 1,284 1,289 1,294 1,297 1,302 1,307 1,310 75,241 NC-2004 Page 1 of1 Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Normalize for storm costs For the test period ended December 31, 2016 (Dollars in thousands) Projected Storm Deferral Balance-Transmission Line !:&_ 1 7 10 11 12 13 14 15 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 Description ~~~~~~~~ NC MAC RS Plant Dop Tax Book Timing Deferred ADIT Acc"m Balance Rate (1) De pr De pr Diff Tax Balance De pr 1113012016 Plant Balance (a) December 2016 January 2017 February2017 March 2017 April 2017 May2017 June 2017 July2017 August 2017 September 2017 October2017 November 2017 December 2017 Total Costs Through December 31, 2017 2,789 2,789 2,789 2,789 2,789 2,789 2,789 2,789 2,789 2,789 2,789 2,789 2,789 2,789 5.00% 5.00% 9.50% 9.50% 9.50% 9.50% 9.50% 9.50% 9.50% 9.50% 9.50% 9.50% 9.50% 9.50% MAC RS 70 70 22 22 22 22 22 22 22 22 22 22 22 22 4 4 4 4 4 4 4 4 4 4 4 4 4 4 (66) (66) (18) (18) (18) (18) (18) (18) (18) (18) (18) (18) (18) (18) (24) (24) (7) (7) (7) (7) (7) (7) (7) (7) (7) (7) (7) (7) Cost Rates: Long-Term Debt Common Equity Cost Components: Long-Term Debt (L22 x L26) Common Equity (L23 x L27) Rate Depreciation Rates: Book Depreciation Rate - Distribution Book Depreciation Rate - Transmission [1] MACRS Rate based on 15 yr plant life (4) (8) (12) (16) (19) (23) (27) (31) (35) (39) (43) (47) (51) (54) 2,761 2,757 2,722 2,711 2,701 2,690 2,679 2,669 2,658 2,648 2,637 2,626 2,616 2,605 ~~ 5 5 10 (a) November balance as adjusted for March true-up Cost of Capital Assumed Capital Structure: Long-Term Debt Common Equity (24) (24) (56) (62) (69) (76) (83) (89) (96) (103) (109) (116) (123) (130) Deferred Cost of Capital-Debt Rate Base After-Tax Equity Tax Ra1o Pre-Tax Equity 47.00% 53.00% 4.57% 10.20% 14.77% 37.06% 4.57% 16.21% 20.78% 2.15% 5.41% 7.55% 37.06% 2.15% 8.59% 10.74% 3.5676% 1.6723% 5 5 5 5 5 5 5 5 5 5 5 5 40 Total Deferred Cost of Capital-Equity 2016 5 5 5 5 5 5 5 5 5 5 5 5 5 5 50 2017 20 20 39 19 19 19 19 19 19 19 19 19 19 19 19 152 Deferred Depreciation Expense Deferred O&M Expense Deferred Tax on Deferred Costs ~ ~~~ ~~~ ~~~ 20 20 19 19 19 19 19 19 19 19 19 19 19 19 191 4 4 8 4 4 4 4 4 4 4 4 4 4 4 4 31 4 4 4 4 4 4 4 4 4 4 4 4 4 4 39 3,775 3,775 3,775 3,775 (1,409) (11) (1,420) (10) (10) (10) (10) (10) (10) (10) (10) (10) (10) (10) (10) (80) (1,409) (11) (10) (10) (10) (10) (10) (10) (10) (10) (10) (10) (10) (10) (1,500) Pre-Tax Return on Deferred Costs-Debt 2016 2017 Total 4 4 4 4 4 4 4 4 5 5 5 5 5 5 35 4.3 9 9 9 9 9 9 9 9 9 9 9 9 75 Pre-Tax Return on Deferred Costs-Equity 2016 2017 Total 17 17 17 17 18 18 18 18 18 18 18 18 19 19 142 17.1 34 35 35 35 36 36 36 36 37 37 37 37 300 Deferred Asset Total 2016 2017 3,803 50 3,853 49 50 50 50 50 50 50 51 51 51 51 51 400 Total 3,803 50 71 71 72 72 72 73 73 73 74 74 74 75 4,430 Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Normalize for storm costs For the test period ended December 31, 2016 NC-2005 Estimated Revenue Margin Impact Hurricane Matthew Service Restoration by Day Line 1 2 3 4 5 6 7 8 9 Saturday Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sunday Date 10/8 10/9 10/10 10/11 10/12 10/13 10/14 10/15 10/16 Time 09:30 09:30 09:30 08:00 09:30 09:30 09:30 09:30 07:30 Cumulative Restored 40,182 444,387 824,283 1, 125,248 1,289,279 1,392,282 1,466,709 1,504,277 1,521,197 % Restored 3% 29% 54% 74% 85% 92% 96% 99% 100% 10 Daily Restored 40,182 404,205 379,896 300,965 164,031 103,003 74,427 37,568 16,920 1,521,197 Outage Duration (Davs) 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 11 12 13 14 15 16 17 18 19 20 21 SYSTEM Residential Commercial 23 24 25 26 27 Residential Commercial Average Total Lost Sales Daily Usage (KWh) (KWh) Average Margin per KWh Total Lost Net Revenue Margin ($) 404,205 759,792 902,895 656, 124 515,015 446,562 262,976 135 360 4,082,929 1 Oct 2016 Customer Mix Count Percent 1,296,903 84.9% 230 059 15.1% 1,526,962 100.0% 3,467,776 615 153 4,082,929 Oct 2016 Customer Mix Count Percent 1, 160,312 76.0% 198 692 13.0% 1,359,004 89.0% 3,102,547 531 281 3,633,828 NC 22 Total Outage Days t 29 190 28 194 100,565,517 116,878,984 217,444,501 $ $ 87,071,483 102,828,508 189,899,991 $ $ 0.0770 0.0530 0.0780 0.0520 $ $ 7,743,545 6,194,586 $ 13,938, 131 $ $ 6,791,576 5,347,082 $ 12, 138,658 Note - Industrial impact not estimated because estimates using customer averages would not be reliable due to significant usage differences among customers Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Annualize O&M non-labor expenses For the test period ended December 31, 2016 NC-2100 Narrative E-1 Item 10 Adjustments Requirement Provide the detail work papers showing calculations supporting all accounting, proforma, end-of-period, and proposed rate adjustments in the rate application to revenue, expense, investment, and reserve accounts for the test year and ? complete detailed narrative explanation of each adjustment. including the reason why each adjustment!?. required. Explain all components used in each calculation. Index each calculation to the accounting, proforma, end-of-period, and proposed rate adjustment which it supports. Detailed Narrative Explanation of Adjustment This pro-forma annualizes test period operation and maintenance expenses excluding fuel, purchased power, and labor and benefit costs to reflect the change in unit costs that occurred during the test period. The impact to operation and maintenance expenses is determined as follows: First, calculate total operation and maintenance expense excluding fuel and purchased power but including labor that needs to be adjusted. This calculation is done by starting with per book operation and maintenance expense, excluding fuel and purchased power, and subtracting all pro-forma adjustments that impacted this amount. Second, subtract net electric operation and maintenance salaries and wages from operation and maintenance expenses including labor. Third, subtract fringe benefits from operation and maintenance expenses including labor. Fringe benefits are calculated by multiplying net electric operation and maintenance salaries and wages by the fringe benefits contribution rate. Finally, the impact to operation and maintenance expense is calculated by multiplying total non-labor operation and maintenance expenses by the average inflation rate. The impact to income taxes is determined by multiplying taxable income by the statutory tax rate. Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Annualize O&M non-labor expenses For the test period ended December 31, 2016 (Dollars in thousands) Line No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 NC-2100 Description Total NC Retail Source Pro Formas Impacting Income Statement Line Items Electric operating revenue $ Electric operating expenses: Operation and maintenance Fuel used in electric generation Purchased power Other operation and maintenance expense Depreciation and amortization General taxes Interest on customer deposits Income taxes Amortization of investment tax credit NC-2101 3,847 NC-2101 (1,426) Total electric operating expenses Sum L8 through L15 Operating income L4 - L17 2,421 $ Notes: Revenue: positive number increases revenue I negative number decreases revenue Expense: positive number increases expense I negative number decreases expense Pro Formas Impacting Rate Base Line Items Electric plant in service Accumulated depreciation and amortization Electric plant in service, net $ Sum L28 through L29 Add: Materials and supplies Working capital investment Less: Accumulated deferred taxes Operating reserves Construction work in progress Total impact to rate base Sum L30 through L42 $ Note: Rate Base: positive number increases rate base I negative number decreases rate base (2,421} Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Annualize O&M non-labor expenses For the test period ended December 31, 2016 (Dollars in thousands) Line No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 NC-2101 Page 1of2 Description O&M (excluding fuel and purchased power) Less: Less: Less: Less: Less: Less: Less: nuclear refueling outage costs costs recovered through non-fuel riders amortization of prior rate case costs aviation expenses NCUC regulatory fee LTSA Expense Customer Connect Expenses Total O&M to be adjusted including labor (Sum L3throughL11) Exh.C NC Retail Allocation (b) Total Carolinas (a) Ref. $ NC-2401 NC-0701 NC-2500 NC-2602 NC-2701 NC-3101 NC-3001 1,473,062 [1] (58,254) (24, 189) (526) (12,495) (858) (10,645) (2,882) $ [2] [3] [4] [5] [6] [7] [8] 1,363,214 Net electric O&M salaries and wages Fringe benefits contribution rate Fringe benefits (L15xL16) $ $ 622,438 [9] 14.03% [10] 87,328 Less: net electric O&M salaries & wages and fringe benefits (L 15 + L 17) $ 709,766 $ $ 653,448 0.88% [12] 5,718 $ $ 37.0599% [13] (2,119) (3,599) Total non-labor O&M to be adjusted (L 13 - L 19) Average inflation rate Impact to O&M - non-labor O&M adjustment to reflect end of period costs (L21 x L22) Statutory tax rate Impact to income taxes (-L23 x L25) Impact to operating income (-L23 - L26) [1] Bateman Exhibit 1, Other O&M, Page 1, Line 4, Columns 1 and 2 [2] NC-2401 - Normalize nuclear refueling outage costs, Line 22 [3] NC-0701 - Eliminate costs recovered through non-fuel riders, Line 7 [4] NC-2500 - Amortize rate case costs, Line 10 [5] NC-2602 - Adjust aviation expenses, Line 5 [6] NC-2701, Adjust for change in NCUC reg fee, line 8 [7] NC-3101, Levelize LTSA expense, line 3 [8] NC-3001, Adjust for Customer Connect, line 24 [9] NC-2201, Line 14 [10] NC-2201, Line 34 [11] Labor allocation factor [12] NC-2103-Average of Consumer Price Index and Producer Price Index, Line 19 [13] NC-0104- 2017 Tax Rate, Line 10 Total NC Retail (c) $ 989,958 [1] (58,254) (14,659) (526) (2,974) (858) (6,451) (2,882) 60.6008% [9] $ 903,355 65.3245% [11] $ 463,651 [2] [3] [4] [5] [6] [7] [8] $ 439,704 0.88% [12] 3,847 $ $ 37.0599% [13] (1,426) (2,421) $ Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Annualize O&M non-labor expenses For the test period ended December 31, 2016 Average of Consumer Price Index and Producer Price Index CPI [1] (a) PPI [2] Finished goods less food & energy (b) PPI [3] Processed materials less food & energy (c) December 2015 January 2016 February 2016 March 2016 April 2016 May 2016 June 2016 July 2016 August 2016 September 2016 October 2016 November 2016 December 2016 236.5 236.9 237.1 238.1 239.3 240.2 241.0 240.6 240.8 241.4 241.7 241.4 241.4 193.4 193.8 194.1 194.3 194.6 194.9 195.5 195.4 195.6 196.0 196.1 196.3 196.7 186.5 185.8 185.3 185.3 185.8 186.3 186.6 186.8 187.4 187.6 188.2 188.9 189.3 13 month average 239.7 195.1 186.9 Increase from average to year end (L 13 - L15) % increase from average to year end (L 17 I L15) Average inflation rate (Average, Line 18, Col. (a) and Col. (d): 1.7 0.71% 0.88% 1.6 0.80% 2.4 1.28% Line No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Period [1] NC-2104 - Consumer Price Index - All Items [2] NC-2105 - Producer Price Index - Commodities - Finished goods less food and energy [3] NC-2106 - Producer Price Index - Commodities - Processed materials less food and energy Note: some totals may not foot or compute due to rounding. NC-2103 Page 1 of 1 PPI Average Average of and 1.04% QQW Jim 1W NC-2104 Page 1 of. Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Annualize O&M non-labor expenses For the test period ended December 31, 2016 Consumer Price Index - All Urban Consumers Original Data Value CUUROOOOSAO Series Id: Not Seasonally Adjusted U.S. city average Area: All items Item: Base Period: 1982-84=100 Years: Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2007 to 2017 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Avg 202.416 211.080 211.143 216.687 220.223 226.665 230.280 233.916 233.707 236.916 242.839 203.499 211.693 212.193 216.741 221.309 227.663 232.166 234.781 234.722 237.111 205.352 213.528 212.709 217.631 223.467 229.392 232.773 236.293 236.119 238.132 206.686 214.823 213.240 218.009 224.906 230.085 232.531 237.072 236.599 239.261 207.949 216.632 213.856 218.178 225.964 229.815 232.945 237.900 237.805 240.229 208.352 218.815 215.693 217.965 225.722 229.478 233.504 238.343 238.638 241.018 208.299 219.964 215.351 218.011 225.922 229.104 233.596 238.250 238.654 240.628 207.917 219.086 215.834 218.312 226.545 230.379 233.877 237.852 238.316 240.849 208.490 218.783 215.969 218.439 226.889 231.407 234.149 238.031 237.945 241.428 208.936 216.573 216.177 218.711 226.421 231.317 233.546 237.433 237.838 241.729 210.177 212.425 216.330 218.803 226.230 230.221 233.069 236.151 237.336 241.353 210.036 210.228 215.949 219.179 225.672 229.601 233.049 234.812 236.525 241.432 207.342 215.303 214.537 218.056 224.939 229.594 232.957 236.736 237.017 240.007 Source: Bureau of Labor Statistics Generated on: February 27, 2017 (05:43:39 PM) Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Annualize O&M non-labor expenses For the test period ended December 31 , 2016 NC-2105 Page 1 of 1 Producer Price Index-Commodities Original Data Value WPSFD4131 Series Id: Seasonally Adjusted Final demand Group: Finished goods less foods and energy Item: 198200 Base Date: 2007 to 2017 Years: Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Jan Feb Mar Apr May Jun Jul Aug 160.2 164.1 170.8 172.5 175.3 180.7 183.9 187.5 190.7 193.8 197.2 160.9 164.8 170.9 172.6 175.7 181.0 184.2 187.7 191.3 194.1 160.9 165.1 171.2 172.9 176.2 181.3 184.4 187.7 191.5 194.3 161.0 165.8 171.3 172.9 176.8 181.6 184.6 187.8 191.5 194.6 161.4 166.3 171.2 173.4 177.0 181.8 184.8 188.2 191.8 194.9 161.7 166.6 171.8 173.6 177.6 182.1 185.0 188.5 192.7 195.5 162.1 167.4 171.4 173.7 178.2 182.9 185.2 188.7 193.0 195.4 162.3 168.1 171.8 173.9 178.5 183.2 185.4 188.9 193.0 195.6 Sep 162.3 168.9 171.6 174.3 179.0 183.2 185.4 189.2 193.3 196.0 Oct 162.9 170.5 171.5 174.3 179.4 183.3 185.5 189.6 193.0 196.1 Nov Dec Avg 163.4 170.4 172.1 174.3 179.6 183.7 186.0 189.8 193.2 196.3 163.4 170.8 172.1 174.6 180.0 183.7 186.8 189.9 193.4 196.7 161.9 167.4 171.5 173.6 177.8 182.4 185.1 188.6 192.4 195.3 Note: Items highlighted green above are preliminary. All indexes are subject to revision four months after original publication. Source: Bureau of Labor Statistics Generated on: February 27, 2017 (05:43:39 PM) NC-2106 Page 1 of 1 Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Annualize O&M non-labor expenses For the test period ended December 31, 2016 Producer Price Index-Commodities Original Data Value WPSID69115 Series Id: Seasonally Adjusted Intermediate demand by commodity type Group: Processed materials less foods and Item: 198200 Base Date: 2007 to 2017 Years: Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Jan 165.6 172.7 174.8 177.0 186.6 192.0 193.8 194.7 191.8 185.8 189.8 Feb 165.6 173.8 173.5 178.4 188.8 193.2 194.7 195.3 191.2 185.3 Mar 166.3 175.9 172.7 179.6 190.2 194.5 194.4 194.8 190.6 185.3 Apr 167.7 178.3 171.8 181.4 192.4 194.7 193.9 195.2 190.2 185.8 May 168.6 181.1 171.4 181.8 193.5 194.1 193.6 195.1 190.2 186.3 Jun 169.0 183.7 171.8 180.9 193.7 191.9 193.5 195.1 190.1 186.6 Jul 169.6 187.4 172.2 180.2 194.2 191.2 193.2 195.8 189.9 186.8 Aug 168.9 188.6 173.2 180.5 194.2 191.3 193.6 196.3 189.1 187.4 Sep 169.0 188.8 174.2 180.9 194.2 192.0 193.6 196.3 188.0 187.6 Oct 169.7 184.9 174.5 182.0 193.0 192.2 193.6 195.7 187.6 188.2 Nov 171.0 180.4 174.9 183.1 192.3 192.1 193.6 194.8 187.1 188.9 Dec 171.2 176.2 175.9 184.1 191.3 192.6 194.0 193.9 186.5 189.3 Avg 168.5 181.0 173.4 180.8 192.0 192.7 193.8 195.3 189.4 186.9 Note: Items highlighted green above are preliminary. All indexes are subject to revision four months after original publication. Source: Bureau of Labor Statistics Generated on: February 27, 2017 (05:43:39 PM) Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Normalize O&M labor expenses For the test period ended December 31, 2016 NC-2200 Narrative E-1 Item 10 Adjustments Requirement Provide the detail work papers showing calculations supporting all accounting, proforma, end-of-period, and proposed rate adjustments in the rate application to revenue, expense, investment, and reserve accounts for the test year and ? complete detailed narrative explanation of each adjustment. including the reason why each adjustment!?. required. Explain all components used in each calculation. Index each calculation to the accounting, proforma, end-of-period, and proposed rate adjustment which it supports. Detailed Narrative Explanation of Adjustment This pro-forma adjusts operation and maintenance expense, general taxes and income taxes to normalize operation and maintenance labor costs. The impact to operation and maintenance expense is determined as follows: 1. The salaries and wages booked during the test period are subtracted from salaries and wages at April 1, 2017 per Human Resources. 2. The percentage of electric operation and maintenance expense to apply to the salaries and wages adjustment is calculated as follows: total operation and maintenance labor per Form 1, Page 354 is divided by total salaries and wages excluding other work in progress and allocation of clearing accounts per Form 1, Page 355. The adjustment calculated in Step 1 i multiplied by this percentage. 3. The impact to related fringe benefit costs is calculated by multiplying the salaries and wage adjustment calculated in Step 1 by the fringe benefits contribution rate. The fringe benefits contribution rate is calculated by dividing account 926 - employee pensions and benefits booked during the test period by total operation and maintenance labor per Form 1, Page 354. 4. The impact to operation and maintenance expense also reflects an adjustment to restate variable short and long term pay booked during the test period to target. The impact to general taxes reflects the change in the FICA tax base. To adjust general taxes, the salaries and wages adjustment calculated in Step 1 is multiplied by the percentage of wages subject to OASDI by the OASDI tax rate for employers. Next, the adjustment due to Medicare tax is calculated by multiplying the salaries and wages adjustment calculated in Step 1 by the Medicare tax rate. The impact to income taxes was determined by multiplying taxable income by the statutory tax rate. NC-2200 Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Normalize O&M labor expenses For the test period ended December 31, 2016 (Dollars in thousands) Line No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 Description Total NC Retail Source Pro Formas Impacting Income Statement Line Items Electric operating revenue $ Electric operating expenses: Operation and maintenance Fuel used in electric generation Purchased power Other operation and maintenance expense Depreciation and amortization General taxes Interest on customer deposits Income taxes Amortization of investment tax credit NC-2201 (6,122) NC-2201 280 NC-2201 2,165 Total electric operating expenses Sum L8 through L15 Operating income L4 - L17 {3,677} $ Notes: Revenue: positive number increases revenue I negative number decreases revenue Expense: positive number increases expense I negative number decreases expense Pro Formas Impacting Rate Base Line Items Electric plant in service Accumulated depreciation and amortization Electric plant in service, net $ Sum L28 through L29 Add: Materials and supplies Working capital investment Less: Accumulated deferred taxes Operating reserves Construction work in progress Total impact to rate base Sum L30 through L42 $ Note: Rate Base: positive number increases rate base I negative number decreases rate base 3677 NC-2201 Page 1of2 Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Normalize O&M labor expenses For the test period ended December 31, 2016 (Dollars in thousands) Line No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 Description Salaries and Wages bll Pa)lroll Companll Duke Energy Carolinas - salaries and wages Service Company DEBS - salaries and wages - charged to Duke Energy Carolinas Duke Energy Progress - salaries and wages - charged to Duke Energy Carolinas Total salaries and wages (Sum L3 through LS) $ $ 73,325 [1] 116,429 [1] 407,969 [1] 597,723 Calculation of Electric O&M % to ApplJl to Salaries & Wages Adjustment Total salaries and wages (Form 1, Page 355, Line 96, Col (d)) $ Less: other work in progress (Form 1, Page 355, Line 78, Col (b)) Less: allocation of payroll charged for clearing accounts (Form 1, Page 355, Line 96, Col (c)) Total salaries and wages - excluding other WIP and allocation of clearing accounts (L9 - L10 - L11) $ 793,636 [4] 595 [4] 16,940 [4] 776,101 $ 622,438 [4] Total operating and maintenance (Form 1, Page 354, Line 28, Col (b)) Adjustment to General Taxes - FICA Net electric O&M salaries and wages to adjust (L 17) Percentage of wages subject to OASDI Electric wage adjustment subject to OASDI tax (L20 x L21) OASDI tax rate (employers) Adjustment due to wage adjustment (before Medicare rate) (L22 x L23) $ 77,647 [2] 115,841 [2] 411,947 [2] 605,435 $ $ 4,322 (588) 3,978 7,712 $ 80.20% 6,185 $ $ $ $ Net electric O&M salaries and wages to adjust (L 17) Medicare tax rate Adjustment due to Medicare tax (L26 x L27) Impact to general taxes (L24 + L28) Total operating and maintenance (Form 1, Page 354, Line 28, Col (b)) (L 14) Fringe benefits contribution rate (L32 / L33) $ Pro Forma HR salaries 80.20% Percent of incurred costs charged to electric expense (L 14 I L12) Net electric O&M salaries and wages to adjust (L6 x L16) Calculation of Fringe Benefits Contribution Rate Account 926- employee pensions and benefits - 12 Months Ended December 31, 2016 As of 4/1/2017 HR Salaries Labor Per Books $ $ $ 87,327 [7] 622,438 14.03% 6,185 88.06% [5] 5,447 6.20% [6] 338 6,185 1.45% [6] 90 428 NC-2201 Page 2 of 2 Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Normalize O&M labor expenses For the test period ended December 31, 2016 (Dollars in thousands) Line No. 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 Total Carolinas Description Calculation of O&M (Including Fringe Benefits & Variable Pall) and Income Tax Net electric O&M salaries and wages to adjust (L 17) Fringe benefits contribution rate (L34) Fringe benefits adjustment (L37 x L38) $ $ NC Retail Allocation 6,185 14.03% 868 Adjustment to restate variable short and long term pay at target $ Impact to O&M (L37 + L39 + L41) $ Impact to general taxes (L29) $ 428 Taxable income (-L43 - L45) Statutory tax rate Impact to income taxes (L47 x L48) $ 8,944 37.0599% [10] 3,315 Impact to operating income (L47 - L49) $ [1] NC-2202- Salaries and Wages by Payroll Company for Duke Energy Carolinas - 12 Months Ended Dec 31, 2016 [2] NC-2204 -Annual Salary Information by Payroll Company for Duke Energy Carolinas - Dec 31, 2016 [4] NC-2206- Distribution of Salaries and Wages, 12 Months Ended December 31, 2016 (Form 1, Page 354-355) [5] NC-2207 - Quarterly Federal Tax Summary Report (Report ID: TAX010FD) [6] NC-2208 - OASDI and SSI Program Rates & Limits - 2017 [7] NC-2209- Duke Energy Prgoress - (926) Employee Pensions and Benefits - 12 Months Ended December 31, 2016 [8] NC-2210 - Variable Short and Long Term Pay for Duke Energy Progress [9] Allocation Factor - LABOR [10] NC-0104 - 2017 Tax Rate, Line 10 $ Total NC Retail (16,425) [8] (9,372) 65.3245% [9] 5,629 65.3245% [9] $ (6,122) $ 280 $ 5,842 37.0599% [10] 2,165 $ $ 3,677 NC-2202 Page 1of1 Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Normalize O&M labor expenses For the test period ended December 31, 2016 Salaries and Wages by Payroll Company for Duke Energy Progress - 12 Months Ended December 31 2016 Line No. Payroll Company 1 2 Duke Energy Carolinas (Payroll Company 100) 3 Duke Energy Carolinas (Payroll Company 100) 4 Subtotal Resource Category Direct Labor Allocated Labor Total $ $ 54,992,474 18,332,354 73,324,827 5 Service Company (Payroll Company 110) - charged to Duke Energy Carolinas Service Company (Payroll Company 110) - charged to Duke Energy Carolinas Subtotal Direct Labor Allocated Labor 10 Duke Energy Progress (Payroll Company 801) - charged to Duke Energy Carolinas 11 Duke Energy Progress (Payroll Company 801) - charged to Duke Energy Carolinas 12 Subtotal 13 14 Total Direct Labor Allocated Labor 6 7 8 $ $ 102,293,989 14, 134,706 116,428,696 9 Note: totals may not foot due to rounding Source: Duke Energy Progress General Accounting and Reporting $ 345,845,256 62, 124,077 407,969,334 $ 597,722,857 $ 75.00% 25.00% 100.00% 87.86% 12.14% 100.00% 84.77% 15.23% 100.00% Jun 13111 2011? Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Normalize O&M labor expenses For the test period ended December 31, 2016 [BLANK PAGE] There are no joint owner reimbursements to consider. NC-2203 Page 1 of 1 NC-2204 Page 1 of 1 Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Normalize O&M labor expenses For the test period ended December 31, 2016 Annual Salary Information by Payroll Company for Duke Energy Progress - April 1. 2017 Line No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Payroll Company Grand Total Duke Energy Carolinas (Payroll Company 100) Duke Energy Carolinas % of labor charged to Duke Energy Progress Duke Energy Carolinas labor charged to Duke Energy Progress (L2 x L3) $ Service Company (Payroll Company 110) Service Company% of labor charged to Duke Energy Progress Service Company labor charged to Duke Energy Progress (L6 x L7) $ 669,717,204 [2] Duke Energy Progress (Payroll Company 801) Duke Energy Progress % of labor charged to Duke Energy Progress Duke Energy Progress labor charged to Duke Energy Progress (L 10 x L 11) $ 449,409, 720 [2] Total - sum of annual salaries (L4+LB+L12) $ 605,435,222 [1] NC-2205 - Labor Allocations by Business Unit Group - 12 Months Ended December 31, 2016 [2] Information provided by Duke Energy Human Resources Operations $ $ 787,373,356 [2] 9.86% [1] 77,647,103 17.30% [1] 115,841, 114 91.66% [1] $ 411,947,005 Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Normalize O&M labor expenses For the test period ended December 31, 2016 NC-2205 Page 1 of 1 Labor Allocations by Business Unit Group - 12 Months Ended December 31. 2016 Base Labor Resource Types Included: 11000, 11001, 11002, 18000, 18001, 18005, 18006 Line No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Resp Center Level 2 Node Name LVL BU Group 1OO_DUKE_POWER_CONSO 1OO_DUKE_POWER_CONSO 1OO_DUKE_POWER_CONSO 1OO_DUKE_POWER_CONSO 1OO_DUKE_POWER_CONSO 1. DE Carolinas 2. DE Progress 3.DEBS 4. Other 110_SERVICE_COMPANY 110_SERVICE_COMPANY 110_SERVICE_COMPANY 110_SERVICE_COMPANY 110_SERVICE_COMPANY 1. DE Carolinas 2. DE Progress 3.DEBS 4. Other 801_DE_PROGRESS 801_DE_PROGRESS 801_DE_PROGRESS 801_DE_PROGRESS 801_DE_PROGRESS 1. DE Carolinas 2. DE Progress 3.DEBS 4. Other Total Source: Duke Energy Corporate Accounting Moneta!Y Amount JD $ Percentage 658,973,988 76,086,447 101,084 36,386,148 771,547,667 85.41% 9.86% 0.01% 4.72% 100.00% 192,167,596 116,937,885 33,506,321 333,446,210 676,058,012 28.42% 17.30% 4.96% 49.32% 100.00% $ 29,356,449 408,280,378 8,704 7,764,118 445,409,649 6.59% 91.66% 0.00% 1.74% 100.00% $ 1,893,015,327 $ $ $ $ Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Normalize O&M labor expenses For the test period ended December 31, 2016 NC-2206 Page 1of2 NC-0506 Page 2 of 2 Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Normalize O&M labor expenses For the test period ended December 31, 2016 Page 355 Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Normalize O&M labor expenses For the test period ended December 31, 2016 Source: Duke Energy HR Quarterly Federal Tax Summary Report (Report ID: TAX01 OFDl - Summary Line No. Description 1 2 Duke Energy Carolinas 3 FICA/OASDI [D, E] YTD, Column 'Employee NL Wages' 4 FICA/OASDI [D, E] YTD, Column 'Employer Taxable Wages' 5 6 7 8 9 10 11 12 13 14 12 Months Ended Dec31, 2016 (a) (c) (b) 1,013,364,651 [1] 890,751,562 [1] 87.90% Percentage Total (L4 / L3) Duke Energy Business Services FICA/OASDI [D, E] YTD, Column 'Employee NL Wages' FICA/OASDI [D, E] YTD, Column 'Employer Taxable Wages' 855,970,483 [2] 704,530,206 [2] 82.31% Percentage Total (L9 / L8) Duke Energy Progress FICA/OASDI [D, E] YTD, Column 'Employee NL Wages' FICA/OASDI [D, E] YTD, Column 'Employer Taxable Wages' 15 16 17 18 19 20 21 Calculation of Percentage of Wages Subject to OASDI For 12 Months Ended June 30 2012 Duke Energy Carolinas Duke Energy Business Services Duke Energy Progress 22 Total (Sum L19 through L21) 575, 192,341 [3] 516,134,837 [3] 89.73% Percentage Total (L 14/L13) [1] NC-2207, Page 2 of 4, Quarterly Federal Tax Summary [2] NC-2207, Page 3 of 4, Quarterly Federal Tax Summary [3] NC-2207, Page 4 of 4, Quarterly Federal Tax Summary [4] NC-2202- Salaries and Wages by Payroll Company for [5] Column (a), Line 19 divided by Line 22 [6] Column (a), Line 20 divided by Line 22 [7] Column (a), Line 21 divided by Line 22 [8] Column (d), Line 5 [9] Column (d), Line 10 [10] Column (d), Line 15 [11] Column (b) multiplied by Column (c) (d) 73,324,827 [4] 116,428,696 [4] 407,969,334 [4] 597,722,857 12.27% [5] 19.48% [6] 68.25% [7] 100.00% Report - 4th Quarter 2016, Company: 100, Report - 4th Quarter 2016, Company: 100, Report - 4th Quarter 2016, Company: 100, Duke Energy Carolinas - 12 Months Ended 87.90% [8] 82.31% [9] 89.73% [10] Page 1 Page 3 Page 15 December 31, 2016 10.78% [11] 16.03% [11] 61.25% [11] 88.06% Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Normalize O&M labor expenses For the test period ended December 31, 2016 Quarterly Federal Tax Summary Report (Report ID: TAX010FD) - 100 - Duke Energy Carolinas, LLC JCI JVI flo 0\f;. TO il?, 1< Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Normalize O&M labor expenses For the test period ended December 31, 2016 Quarterly Federal Tax Summary Report (Report ID: TAX010FD) - 110 - Duke Energy Business Services TAXJ lAlpl w ld WJ 1o t.U?)J:)"J, : :o, 171, Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Normalize O&M labor expenses For the test period ended December 31, 2016 Quarterly Federal Tax Summary Report (Report ID: TAX010FD) - 801 - Duke Energy Progress, LLC Q:'D Y7D Q'/D <;7D t7D Q':O ff .Ql .. Q7D Y7D t, 'L1pe ft!l ta::, ,:::rn n lf wn NC-2207 Page 1 of 4 1 Operations DFFIGIM. Jim Egg gig?wig EEK 55.: NC-2207 Page 2 of 4 Egg gig?wig EEK 55.: NC-2207 Page 3 of 4 Egg gig?wig EEK 55.: NC-2207 Page 4 of 4 NC-2208 Page 1 of 1 Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Normalize O&M labor expenses For the test period ended December 31, 2016 OASDI and SSI Program Rates & Limits o1*'o TB~!PMCBT To7?1 (R)iKWo ~- oirfllm, - ~)1Nflh 1l1Kt1 ~ io 1NV1111!1C1!1 @ lftNlCMt i~h! llMMJhlWDJ ~- ~- \Wldl mb 1h!i MB 1'lwWW!: btrt 119 bbH4Wtll) Ji!;f&Jli (R)iKW. lftNlCMt ;~- ~#!Mlbi Eiiim8- ih@J:ttHM TH 1*'i:tbll QMJJ:t i:tJi:tii!i!;f ON MbZ ~iihM~dtz?--1 Ji:tBMB d i:tHMJ QMh! # J1bJ:t Eiiim8- JJ:tbb~ ~~ J:tbHJli!y; 1lit!av Ab ih@br1111*ft AO Jm f:ifrtiM> '4111$7 - ~ W<ili m .uf.i?t$btff1(4 ff1P1HM% - & 1 o 01 i l 1&mfr&4 1N ottdltW01 "Pm o ;.1& @rue j m!HLP11~ L'.l 4 p\l\NN11 hw m!$hh 1114 m!W&Ptd 1M Mm!fot&lii &@1 t&i11 ti&!ll1:ii& 1m!$0 MIP1$'1 hll@)l1 Att1(C)N 1%1P1ff1P% @f 11 -rmfi hi par; .we 1o 1nr111(C)mftwu .;111t11 m!$1 ~y~Ji)jly~~{--j hidi11Utt ~. ~koVhid~!Y@li?Mi ~k,Lirt?{Ytiiili!;f Ni1\?llNW ~. ... ~Jhi?W(R)Mlli:milfll?iiV?j.- ll!llwNd !THLiM & ;~- ~1111 -P11ll NoU HCW1'1'14 -&HJ!41l-ftl. & "N m JPY?/ 1~1 UVi!:r ?mhr.1nrn,i Less revenues induded on Line i detenrnined be 1Jnco!!ecti!::d:e 3. to "'H'""''vi 0 1li400'Vo 5., ADJUSTMENT: Plus Additional Amotm~ Due on Account ADJUSTMENT: Mirn.ss Crucm On Account FINAL AMOUNT PAID BY PAYMENT THIS QUARTER CERTIFICATION cerHr; tha! tl1e infcrma!km contaiiled in !hia repoo is trne to the bes! ol my krmvvledge anti Accounting $0.00 Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Adjust purchased power For the test period ended December 31, 2016 NC-2800 Narrative E-1 Item 10 Adjustments Requirement Provide the detail work papers showing calculations supporting all accounting, proforma, end-of-period, and proposed rate adjustments in the rate application to revenue, expense, investment, and reserve accounts for the test year and ? complete detailed narrative explanation of each adjustment. including the reason why each adjustment!?. required. Explain all components used in each calculation. Index each calculation to the accounting, proforma, end-of-period, and proposed rate adjustment which it supports. Detailed Narrative Explanation of Adjustment This adjustment increases the test period purchased power expense to include avoided cost payments to solar qualifying facilities that are expected to start producing power after the end of the test period but before August 31, 2017. The impact to income taxes is determined by multiplying taxable income by the statutory tax rate. NC-2800 Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Adjust purchased power For the test period ended December 31, 2016 (Dollars in thousands) Line No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 Description Total NC Retail Source Pro Formas Impacting Income Statement Line Items Electric operating revenue $ Electric operating expenses: Operation and maintenance Fuel used in electric generation Purchased power Other operation and maintenance expense Depreciation and amortization General taxes Interest on customer deposits Income taxes Amortization of investment tax credit NC-2801 9,033 NC-2801 (3,348) Total electric operating expenses Sum LB through L15 Operating income L4 - L17 5,685 $ Notes: Revenue: positive number increases revenue I negative number decreases revenue Expense: positive number increases expense I negative number decreases expense Pro Formas Impacting Rate Base Line Items Electric plant in service Accumulated depreciation and amortization Electric plant in service, net $ L11 Sum L28 through L29 Add: Materials and supplies Working capital investment Less: Accumulated deferred taxes Operating reserves Construction work in progress Total impact to rate base Sum L30 through L42 $ Note: Rate Base: positive number increases rate base I negative number decreases rate base (5,685} NC-2801 Page 1 of 1 Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Adjust purchased power For the test period ended December 31, 2016 Line No. 1 Description Additional Expense to Serve Forecasted Solar Adds in 2017 [1] Net Metering Name 10 11 12 13 14 15 16 17 18 Bearford Fanm, LLC - Solar Bearford Solar 11, LLC - Solar Bo Biggs Solar LLC - Solar Boaz Farm Solar, LLC - Solar Carolina Solar Energy II - ABO Farm - Solar Clipperton Holdings LLC - Solar Daystar Solar, LLC- Solar Franklinton Solar, LLC - Solar Fremont Farm, LLC - Solar Innovative Solar 35, LLC - Solar - 2nd installation Innovative Solar47, LLC-Solar Innovative Solar 59 - Solar Innovative Solar 60, LLC - Solar Kelly Solar LLC - Solar Kennedy Solar, LLC - Solar Landmark Solar Farm, LLC - Solar Meadowlark Solar LLC - Solar Mill Pond Solar Farm, LLC - Solar Nickelson Solar 2 LLC - Solar Siler City Solar 2 LLC - Solar Spring Valley Fanm 2, LLC - Solar St Pauls Solar 1 - Solar St Pauls Solar 2 - Solar Total Impact to Expense 19 20 21 22 23 24 25 26 27 28 29 30 NC Retail Allocation Factor 31 32 Adjustment to Expense 33 34 Statutory tax rate 35 Impact to income taxes (-L32 x L34) 36 37 Impact to operating income (-L32 - L35) [1] Data provided by renewable forecasting [2] Factor DPALL [3] NC-0104 - 2017 Tax Rate, Line 1O Facility State NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC NC Purchase Power Contract Term 15 year 15 year 15 year 15 year 15 year 15 year 15 year 15 year 15 year 15 year 10 year Other 15 year 15 year 15 year 15 year 15 year 15 year 15 year 15 year 15 year 15 year 15 year Operational Estimated Status Start-Up Date Energized Under Cons Under Cons Under Cons Under Cons Under Cons Under Cons Under Cons Under Cons Under Cons Under Cons Connected Energized Under Cons Under Cons Pending Cm Under Cons Under Cons Under Cons Under Cons Under Cons Under Cons Under Cons 2/9/2017 2/15/2017 6/1/2017 3/15/2017 8/15/2017 4/21/2017 5/1/2017 5/1/2017 3/31/2017 2/3/2017 2/28/2017 2/3/2017 2/3/2017 7/19/2017 5/1/2017 4/1/2017 3/1/2017 5/1/2017 4/15/2017 4/15/2017 2/28/2017 3/1/2017 4/15/2017 Installed Capacity MW 2 35 5 5 132 Avoided Cost Rate $67.17 67.17 61.71 67.17 61.71 67.17 61.71 67.17 61.71 61.71 44.03 61.71 61.71 67.17 67.17 67.17 61.71 61.71 61.71 61.71 61.71 61.71 67.17 Estimated Annual Purchased 9,579 9,579 9,575 9,483 9,483 9,483 9,579 9,579 9,579 3,832 67,053 3,793 3,795 9,575 9,577 3,830 9,575 9,196 9,575 9,196 9,579 9,575 9,575 253,648 Estimated Annual Payment($) $ 643,425 643,425 590,887 636,991 585,213 636,991 591,124 643,425 591,124 236,450 2,952,362 234,085 234,203 643,168 643,297 257,241 590,887 567,479 590,887 567,479 591,124 590,887 643,168 14,905,324 60.60% [2] 9,032,740 37.0599% [3] $ (3,347,528) $ (5,685,212) Duke Energy Progress LLC Docket No. E-2, Sub 1142 Adjust O&M for executive compensation For the test period ended December 31,2016 NC-2900 Narrative E-1 Item 10 Adjustments Requirement Provide the detail work papers showing calculations supporting all accounting, proforma, end-of-period, and proposed rate adjustments in the rate application to revenue, expense, investment, and reserve accounts for the test year and ? complete detailed narrative explanation of each adjustment. including the reason why each adjustment!?. required. Explain all components used in each calculation. Index each calculation to the accounting, proforma, end-of-period, and proposed rate adjustment which it supports. Detailed Narrative Explanation of Adjustment This pro-forma adjusts operation and maintenance expense and income taxes for officers' compensation. The impact to operation and maintenance expense is determined as follows: Eliminate 50% of the compensation of the four Duke Energy executives with the highest level of compensation allocated to Duke Energy Progress in the test period. The impact to income taxes is determined by multiplying taxable income by the statutory tax rate. Duke Energy Progress LLC Docket No. E-2, Sub 1142 Adjust O&M for executive compensation For the test period ended December 31,2016 (Dollars in thousands) Line No. 1 2 NC-2900 Total NC Retail Description Pro Formas Impacting Income Statement Line Items 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Electric operating revenue Electric operating expenses: Operation and maintenance Fuel used in electric generation Purchased power and net interchange Wages, benefits, materials, etc. Depreciation and amortization General taxes Interest on customer deposits Income taxes Amortization of investment tax credit $ (1,625) NC-2901 602 NC-2901 Total electric operating expenses Sum L8 through L15 Operating income L4 - L17 Notes: Revenue: positive number increases revenue I negative number decreases revenue Expense: positive number increases expense I negative number decreases expense (1,023) $ 1,023 NC-2901 Page 1 of 1 Duke Energy Progress LLC Docket No. E-2, Sub 1142 Adjust O&M for executive compensation For the test period ended December 31,2016 (Dollars in thousands) Line No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Description CEO and Other Group Execs (b) Compensation charged to Duke Energy Progress - 12 Months Ended December 31, 2016 $ 4,976 [1] Compensation charged to A&G $ 4,976 [1] $ 65.3245% [2] 3,250 50.00% [3] (1,625) NC Retail Allocation Factor - Wage and Salary Related Items NC retail compensation (L5 x LB) Exclusion percentage Impact to O&M (-L9 x L10) Statutory tax rate 37.0599% [4] Impact to income taxes (-L 11xL13) $ 602 Impact to operating income (-L 11 - L 15) $ 1 023 [1] [2] [3] [4] Information provided by Duke Energy Corporate Accounting Allocation Factor - LAB The percentage of compensation to be excluded for DE Progress's four most highly compensated officers charged to DEP. NC-0104 - 2017 Tax Rate, Line 10 Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Adjust for Customer Connect For the test period ended December 31, 2016 NC-3000 Narrative E-1 Item 10 Adjustments Requirement Provide the detail work papers showing calculations supporting all accounting, proforma, end-of-period, and proposed rate adjustments in the rate application to revenue, expense, investment, and reserve accounts for the test year and ? complete detailed narrative explanation of each adjustment. including the reason why each adjustment!?. required. Explain all components used in each calculation. Index each calculation to the accounting, proforma, end-of-period, and proposed rate adjustment which it supports. Detailed Narrative Explanation of Adjustment This pro-forma adjusts operation expense and income taxes for expense to develop, build and deploy Customer Connect. This project is a multi year project that started in 2016. The Customer Connect Program is part of the pillar of the company's "Road Ahead" strategy to transform the customer experience. The project consolidates four legacy billing systems into one customer service platform. The expense adjustment reflects a 3 year average expense level from 2018-2020 compared to the test year expense level. The impact to income taxes is determined by multiplying taxable income by the statutory tax rate. NC-3000 Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Adjust for Customer Connect For the test period ended December 31, 2016 (Dollars in thousands) Line No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 Description Total NC Retail Source Pro Formas Impacting Income Statement Line Items Electric operating revenue $ Electric operating expenses: Operation and maintenance Fuel used in electric generation Purchased power Other operation and maintenance expense Depreciation and amortization General taxes Interest on customer deposits Income taxes Amortization of investment tax credit NC-3001 7,715 NC-3001 (2,859) Total electric operating expenses Sum L8 through L15 Operating income L4 - L17 4,856 $ Notes: Revenue: positive number increases revenue I negative number decreases revenue Expense: positive number increases expense I negative number decreases expense Pro Formas Impacting Rate Base Line Items Electric plant in service Accumulated depreciation and amortization Electric plant in service, net Sum L28 through L29 Add: Materials and supplies Working capital investment Less: Accumulated deferred taxes Operating reserves Construction work in progress Total impact to rate base Sum L30 through L42 $ Note: Rate Base: positive number increases rate base I negative number decreases rate base (4,856} Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Adjust for Customer Connect For the test period ended December 31, 2016 NC-3001 Page 1 of 1 Line No. Description 1 2 Additional Expense for Customer Connect 3 4 Category 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Core - Hardware Core - Other Core - Software Non-Core - Pay Go Other Non-Core - Pay Go Software Non-Core Bill Format Other Non-Core Bill Format Software Non-Core CRM I Other Non-Core CRM I Software Non-Core CRM 11 Other Non-Core CRM 11 Software Non-Core Analytics Other Non-Core Analytics Software Non Core- Software Other Core Deploy - CBIS - Other Core Deploy - CBIS - Software Operational Costs Total Impact to Expense 2016 Test Year Expense 2018-2020 Avg Spend $ 8,846,606 150,963 235,377 291,409 542,257 65,797 83,525 $ 381,023 10,596,959 100.0% $ 2,882,205 Adjustment to Expense $ 7,714,753 Statutory tax rate Impact to income taxes (-L26 x L28) $ 37.0599% [2] (2,859,083) Impact to operating income (-L26 - L29) $ (4,855,670) [1] Data provided by Customer Connect Program Mgmt [2] NC-0104 - 2017 Tax Rate, Line 10 2,882,205 2017 NC Retail Factor Cost 100.0% $ 100.0% 8,846,606 100.0% 150,963 100.0% 235,377 100.0% 100.0% 291,409 100.0% 100.0% 542,257 100.0% 100.0% 65,797 100.0% 100.0% 83,525 100.0% 100.0% 100.0% 100.0% 100.0% 381,023 10,596,959 Duke Energy Progress, LLC. Docket No. E-2, Sub 1142 Adjust for Long Term Service Agreements For the test period ended December 31, 2016 Detailed Narrative Explanation of Adjustment NC-3100 Narrative REDACTED Duke Energy Progress, LLC. Docket No. E-2, Sub 1142 Adjust for Long Term Service Agreements For the test period ended December 31, 2016 (Dollars in thousands) Line No. 1 2 NC-3100 REDACTED Description Pro Formas Impacting Income Statement Line Items Total NC Retail NC-3101 Page 1 of 1 Duke Energy Progress. LLC. Docket No. E-2, Sub 1142 Adjust for Long Term Service Agreements For the test period ended December 31, 2016 (Dollars in thousands) Line No. Description REDACTED Total DEP NC Retail Allocation Total NC Retail Duke Energy Progress, LLC. Docket No. E-2, Sub 1142 Adjust for Long Term Service Agreements For the test period ended December 31, 2016 Richmond, Lee and Sutton CC Long Term Service Agreement (LTSA) expenses NC-3102 Page 1of1 REDACTED Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Adjust for Deferred Tax Liability For the test period ended December 31, 2016 NC-3200 Narrative E-1 Item 10 Adjustments Requirement Provide the detail work papers showing calculations supporting all accounting, proforma, end-of-period, and proposed rate adjustments in the rate application to revenue, expense, investment, and reserve accounts for the test year and ? complete detailed narrative explanation of each adjustment. including the reason why each adjustment!?. required. Explain all components used in each calculation. Index each calculation to the accounting, proforma, end-of-period, and proposed rate adjustment which it supports. Detailed Narrative Explanation of Adjustment This pro forma adjusts amortization expense and income taxes in the test period to amortize the deferred tax liability resulting from the North Carolina state income tax changes implemented in 2013-2016. The impact to amortization expense is determined by dividing the NC Retail Liability by the amortization period of 5 years. The impact to income taxes is determined by multiplying taxable income by the statutory tax rate. The impact to rate base is determined by reducing the liability for one year of amortization and related ADIT. NC-3200 Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Adjust for Deferred Tax Liability For the test period ended December 31, 2016 (Dollars in thousands) Line No. 1 2 3 4 5 6 7 8 Description Total NC Retail Pro Formas Impacting Income Statement Line Items Electric operating revenue Electric operating expenses: Operation and maintenance Fuel used in electric generation Purchased power and net interchange Wages, benefits, materials, etc. Depreciation and amortization General taxes Interest on customer deposits Income taxes Amortization of investment tax credit 9 10 11 NC-3201 12 13 14 NC-3201 15 16 17 Total electric operating expenses Sum L8 through L 15 18 19 Operating income L4 - L 17 $ 20 21 Notes: Revenue: positive number increases revenue I negative number decreases revenue 22 Expense: positive number increases expense I negative number decreases expense 23 24 25 Pro Formas Impacting Rate Base Line Items 26 27 28 Electric plant in service 29 Accumulated depreciation and amortization 30 Electric plant in service, net Sum L28 through L29 31 32 Add: 33 Materials and supplies 34 NC-3201 Working capital investment 35 Plant held for future use 36 37 Less: 38 Accumulated deferred taxes NC-3201 39 Operating reserves 40 Customer deposits 41 42 Construction work in progress 43 Total impact to rate base Sum L30 through L42 44 $ 45 46 Note: 47 Rate Base: positive number increases rate base I negative number decreases rate base (30,093) 11,152 (18,941) 18 941 30,093 (11,152) 18 941 Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Adjust for Deferred Tax Liability For the test period ended December 31, 2016 (Dollars in thousands) 12/31/2016 Regulatory Liability for NC tax rate change-NC Retail 2 3 4 5 6 7 8 9 1o 11 12 13 14 15 16 17 18 19 20 21 NC-3201 Page 1 of 1 Total Carolinas $ (150,466) [1] NC Retail Allocation 100.0% Total NC Retail (150,466) Impact to Income Statement Line Items-Amortize Deferred Liability Amortization Period in Years Amortization Amount (line 1/line 4) Statutory tax rate Impact to income taxes (-L32 x L34) 5 ($30,093) $ Impact to operating income (L32 - L35) 37.0599% [2] 11,152 $18 941 Impact to Rate Base 12/31/2016 Regulatory Liability for NC tax rate change-NC Retail (L 1) $ Less 2018 Deferral Amortization Projected Deferral Balance 12/31/2018 Change in Deferral Balance (Working Capital) (L 16) Change in ADIT on Working Capital (-L7 x L19) [1] System Amount represents NC Retail Account 0254150 - Regulatory Liability- NC Tax Rate Change at 12/31/16 [2] NC-0104 - 2017 Composite Tax Rate, Line 10 (150,466) 30,093 (120,373) $ 30,093 (11,152) Duke Energy Progress, LLC. Docket No. E-2, Sub 1142 Adjust for tax rate change For the test period ended December 31, 2016 NC-3300 Narrative E-1 Item 10 Adjustments Requirement Provide the detail work papers showing calculations supporting all accounting, pro forma, end-of-period, and proposed rate adjustments in the rate application to revenue, expense, investment, and reserve accounts for the test year and f! complete detailed narrative explanation Qf each adjustment. including the reason why each adjustment ]? required. Explain all components used in each calculation. Index each calculation to the accounting, proforma, end-of-period, and proposed rate adjustment which it supports. Detailed Narrative Explanation of Adjustment This pro forma adjusts income tax expense to reflect the change in the North Carolina income tax rate from 4% to 3% that was effective January 1, 2017. NC-3300 Duke Energy Progress, LLC. Docket No. E-2, Sub 1142 Adjust for tax rate change For the test period ended December 31, 2016 (Dollars in thousands) Line No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Total NC Retail Description Pro Formas Impacting Income Statement Line Items Electric operating revenue Electric operating expenses: Operation and maintenance Fuel used in electric generation Purchased power and net interchange Wages, benefits, materials, etc. Depreciation and amortization General taxes Interest on customer deposits Income taxes Amortization of investment tax credit $ NC-3301 (1,561) Total electric operating expenses Sum L8 through L 15 (1,561) 19 Operating income L4 - L 17 20 21 22 23 Notes: Revenue: positive number increases revenue I negative number decreases revenue Expense: positive number increases expense I negative number decreases expense $ 1 561 NC-3301 Duke Energy Progress, LLC. Docket No. E-2, Sub 1142 Adjust for tax rate change For the test period ended December 31, 2016 (Dollars in thousands) From Table Below System Tax Ex!::!ense NC RETAIL Test Period Rate 2017 Rate Taxes at New Rate Adjustment [AJ [BJ [CJ [DJ [EJ =[BJ X [DJ I [CJ, except for Row 3. See Note 2. [FJ = [EJ - [BJ 1 2 TOTAL STATE INCOME TAX - PB NC State Income (Note 1) SC State Income Tax (Note 1) (23,274) (573) 77.58% 77.58% (18,056) (445) 4.0000% 5.0000% 3.0000% 5.0000% (13,542) (445) 4,514 3 FEDERAL INCOME TAX-PER BOOKS (53,582) 77.58% (41,568) 35.0000% 35.0000% (43,148) (1,580) 4 5 6 7 8 BOOK DEFERRED INCOME TAXES Wholesale Direct Assigned Retail Direct Assigned Allocated Total Book Deferred Income Taxes (12,723) 1,288 394,617 383, 182 0.00% 88.65% 77.58% 0 1, 141 306,140 307,281 37.6101% 37.0599% 302,787 (4,495) 9 Book Income Taxes, excl ITC 305,753 245,652 (1,561) 247,213 From Tax Department Blended Tax Rate Calculations 10 11 12 13 14 NC SC State Blended Federal Total Blended Aportionmate 84.6380% 12.6000% Tax Rate Tax Rate 4.0000% 5.0000% 4.0155% 35.0000% 37.6101% Notes 1 - NC and SC State Income Taxes received from the Tax Department, and allocated to NC Retail based on the allocation ratio for total state taxes from the COSS 2 - Column E for the federal income taxes includes the impact of the change in state taxes on the deductions for federal income tax. 3.0000% 5.0000% 3.1691 % 35.0000% 37.0599% Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Synchronize interest expense with end of period rate base For the test period ended December 31, 2016 NC-3400 Narrative E-1 Item 10 Adjustments Requirement Provide the detail work papers showing calculations supporting all accounting, proforma, end-of-period, and proposed rate adjustments in the rate application to revenue, expense, investment, and reserve accounts for the test year and ? complete detailed narrative explanation of each adjustment. including the reason why each adjustment!?. required. Explain all components used in each calculation. Index each calculation to the accounting, proforma, end-of-period, and proposed rate adjustment which it supports. Detailed Narrative Explanation of Adjustment This pro-forma adjusts income taxes to reflect the tax impact that results from annualizing interest expense based on the end-of-period, adjusted rate base. The impact to income taxes was determined as follows: First, multiply rate base after all pro-forma adjustments have been made by the long-term debt ratio to calculate an adjusted long-term debt balance. Second, multiply the adjusted long-term debt balance by the end of year cost of long-term debt to calculate annualized interest expense. Third, subtract interest expense incurred during the test period from annualized interest expense and multiply the difference by the statutory tax rate. Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Synchronize interest expense with end of period rate base For the test period ended December 31, 2016 (Dollars in thousands) Line No. 1 2 3 4 5 6 7 8 NC-3400 Total NC Retail Description Pro Formas Impacting Income Statement Line Items Electric operating revenue Electric operating expenses: Operation and maintenance Fuel used in electric generation Purchased power Other operation and maintenance expense Depreciation and amortization General taxes Interest on customer deposits Income taxes Amortization of investment tax credit $ 9 10 11 12 13 14 NC-3401 15 16 17 Total electric operating expenses Sum L8 through L 15 18 19 Operating income $ L4 - L 17 20 21 Notes: Revenue: positive number increases revenue I negative number decreases revenue 22 Expense: positive number increases expense I negative number decreases expense 23 24 25 Pro Formas Impacting Rate Base Line Items 26 27 28 Electric plant in service $ 29 Accumulated depreciation and amortization Electric plant in service, net Sum L28 through L29 30 31 32 Add: Materials and supplies 33 34 Working capital investment 35 36 37 Less: Accumulated deferred taxes 38 Operating reserves 39 40 41 42 Construction work in progress 43 $ 44 Total impact to rate base Sum L30 through L42 45 46 Note: Rate Base: positive number increases rate base I negative number decreases rate base 47 2,134 2,134 (2,134) Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Synchronize interest expense with end of period rate base For the test period ended December 31, 2016 (Dollars in thousands) Line No. Description 1 2 Rate base before pro forma adjustments NC-3401 Page 1 of 1 Total Carolinas Col [a] $ 12,915,879 [1] NC Retail Allocation Col [b] 65.54% [2] Total NC Retail Col [c] $ 8,465,228 [1] 3 4 5 6 7 Proforma rate base before working capital adjustment $ 12,435,688 [3] $ 8,150,499 [1] Long-term debt ratio Calculated long-term debt (L4 x L6) $ 47.00% [4] 5,844,773 $ 47.00% [4] 3,830,735 End of year cost of long-term debt Annualized interest expense (L7 x L9) $ 4.17% [4] 243,727 $ 4.17% [4] 159,742 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Incurred interest expense Less interest on customer deposits Net interest expense 253,989 [5] (9,342) 244,647 Increase I to interest costs (L 10 - L14) $ Statutory tax rate Impact to income taxes (-L 16xL18) $ Impact to operating income (-L 19) $ (920) 37.0599% [7] 341 [1] Bateman Exhibit 1, Page 1, Line 12 [2] Allocation Factor - Calculation: L2, Col [c] I L2, Col [a] [3] Calculation: L4, Col [c] I L2, Col [b] [4] Bateman Exhibit 1, Page 2, Line 1 [5] Cost of Service, E-1 Item 45a, Total Other Interest Expense, Line 702 [6] Net Book Plant Allocation Factor [7] Bateman Exhibit 1, Page 1, Line 7 [8] NC-0104 - 2017 Tax Rate, Line 10 (341) 165,499 (8,662) 156,837 65.16% [6] $ (5,757) $ 37.0599% [7] 2,134 $ (2,134) Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Adjust cash working capital for present revenue annualized and proposed revenue For the test period ended December 31, 2016 NC-3500 Narrative E-1 Item 10 Adjustments Requirement Provide the detail work papers showing calculations supporting all accounting, proforma, end-ofperiod, and proposed rate adjustments in the rate application to revenue, expense, investment, and reserve accounts for the test year and g_ complete detailed narrative explanation of each adjustment. including the reason why each adjustment is required. Explain all components used in each calculation. Index each calculation to the accounting, pro forma, end-of-period, and proposed rate adjustment which it supports. Detailed Narrative Explanation of Adjustment This pro forma adjusts cash working capital to incorporate the impact of the other pro forma adjustments. It also calculates the additional cash working capital required as a result of the proposed increase in rates. The adjustment is in accordance with the Commission's March 21, 2016 order in Docket No. M-100 Sub 137. Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Adjust cash working capital for present revenue annualized and proposed revenue For the test period ended December 31, 2016 (Dollars in thousands) NC-3500 Present Line Total Descri12tion No. Source NC Retail 1 Pro Formas lm12acting Income Statement Line Items 2 3 4 Electric operating revenue $ 5 6 Electric operating expenses: 7 Operation and maintenance Fuel used in electric generation 8 Purchased power 9 Other operation and maintenance expense 10 11 Depreciation and amortization 12 General taxes Interest on customer deposits 13 14 Income taxes NC-3501, 3502 15 Amortization of investment tax credit 16 17 Total electric operating expenses Sum LB through L 15 181 18 L4 - L 17 19 Operating income $ (181) 20 21 Notes: 22 Revenue: positive number increases revenue I negative number decreases revenue 23 Expense: positive number increases expense I negative number decreases expense 24 25 Pro Formas lm12acting Rate Base Line Items 26 27 28 Electric plant in service $ 29 Accumulated depreciation and amortization Electric plant in service, net Sum L28 through L29 30 31 32 Add: Materials and supplies 33 (24,907) 34 Working capital investment NC-3501, 3502 35 36 37 Less: Accumulated deferred taxes 38 Operating reserves 39 40 41 42 Construction work in progress 43 44 Total impact to rate base Sum L30 through L42 $ (24,907) 45 46 Note: 47 Rate Base: positive number increases rate base I negative number decreases rate base Pro12osed Total NC Retail $ (234} $ 234 $ 32,224 $ 32,224 NC-3501 Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Adjust cash working capital for proposed revenue For the test period ended December31, 2016 Dollars in Thousands NC Retail Financials Line No. Description 1 2 3 4 5 6 7 8 Total Adjusted Present Revenue Revenue Increase (L3) Revenues rsolved Through Iterative Process to Produce Target RORl (l27 + L29) 9 1O 11 12 13 14 15 16 17 18 19 20 21 Operation & Maintenance Expense Revenue Increase NCUC Revenue Increase Uncollectible Operation and Maintenace Expense with Increase (L9+L10+L11) 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 Operating Expenses: Fuel Used in Electric Generation Purchased Power Depreciation and Amortization General Taxes Revenue Increase (L 18) General Taxes with Increase (L 16+L17) Interest on Customer Deposits Net Income Taxes Revenue Increase (L24) Income Taxes with Increase (L22 + L23) Amortization of Investment Tax Credit Total Operating Expense (L6+L7+L 12+L14+L 18+L20+L24+L26) Income for Return (L3 - L27) Interest Expense Return for Equity (L29 - L30) Adjusted with CWC (a) 3,140,015 [1] Adjusted w/lncrease (c) = (n) 3,617,507 Increase (d) = (e) - (a) With Increase (e) = (a) + (d) 473,932 473,932 3,613,947 634,931 363,173 634,931 [1] 363,173 [1] 1,018,190 [1] 3,081 12,554 1,033,825 667 858 1,526 3,748 13,413 1,035,351 634,931 363,173 662 [5] 852 [6] 1,514 584,114 584,114 [1] 3,743 13,406 1,035,339 99,446 8,662 [1] 24.79 [1] 29.76 [1] 28.01 [1] 90.15 [12] _ _ _ [12] 27.60 [13] 99,446 99,446 8,662 8,662 137.50 [1] (84.22) [1] 176,159 176,159 269,247 (2,093) [1] 2,815,146 0 177,684 (2,093) 2,992,830 176,592 324,869 159,253 [1] 165,616 299,808 632 299,176 624,677 159,885 464,792 297,340 0 297,340 32,224 4.00% 7.66% [2] Adjusted 3,140,015 8,603 14.94 [1] 128,555 1,105 [1] 129,661 38.19 [1] 38.01 [12] ~ [13] (0.19) [1] 93,088 8,125,593 [1] (f) 98.33 [1] [12] 98.33 [13] 93,088 [1] 3,140,015 Weighted Lead Lag Davs 584,114 99,446 [1] Rate Base [CWC Solved for Through Iterative Process] Calculation of Change in Cash Working Capital (CWC) due to Revenue Increase Annual Requirement (L3 and/or L33) Daily Requirement (L42 / 365 Days) Net Lag Days Est. CWC Req. Before Sales Tax Requirement (L43 x L44) Add: Working Capital Related to NC Sales Tax Total Cash Working Capital Requirements (L45 + L46) 477,492 477,492 3,140,015 Total Requirement (L27 + L29 = L3) Overall Rate of Return (L29 I L35) Target Rate of Return Revenue Increase (b) = (c) - (a) NC Retail Iteration 1 175,078 175,078 [7] 32,224 [3] 32,224 Notes [1] NC-3502-Adjustment to cash working capital for present revenue annualized, column (c), column (e), and column (h) [2] NC-3504, Total ROR [3] Ties to Line 35, Column (b) [4] Sum of Line 45, Columns (a) + (d) + (g) + OJ [5] Reg fee of .14% x revenue requirement [6] Uncollectible fee of .18% x revenue requirement [7] L31 / (1 - Tax Rate: 37.0599%) - L31 [8] Line 35 x Rate of Return: 7.6574% [9] Line 35 x Debt Rate: 4.17% and Debt Ratio: 47% [1 O] Column (e) = Column (a) [11] Line 3, Column (f), (i), (I) - Line 33, Column (f), (i), (I) [12] Docket No. E-2, Sub 1142, E-1 Item 14, Lead Lag [13] Calculation of Average Lead/Lag Day [14] New weighted averages are calculated. [15] Line 45, Columns (d), (g), UJ Page 3 of 12 (5.41) [13] (2,093) 2,991,738 [1] 21.68 [14] 622,209 [8] 159,253 [9] 462,956 3,617,507 3,613,947 8,157,817 8,125,593 [10] 7.66% 7.66% [2] Revenue Increase ~[12] 268,166 Adjusted w/lncrease 3,617,507 9,911 16.22 160,779 [4] 1,105 [1] 161,885 7.66% 7.66% [2] 32,121 3,613,947 9,901 16.23 [11] 160,676 23.19 [14] 90.59 [1] [1] 21.94 [14] NC-3501 Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Adjust cash working capital for proposed revenue For the test period ended December31, 2016 Dollars in Thousands NC Retail Financials Line No. 1 2 3 4 5 6 7 Description Total Adjusted Present Revenue Revenue Increase (L3) Revenues rsolved Through Iterative Process to Produce Target RORl (l27 + L29) Operating Expenses: Fuel Used in Electric Generation Purchased Power Adjusted withCWC (a) 3,140,015 [1J Revenue Increase (b) = (c) - (a) 477,492 477,492 3,140,015 634,931 [1J 363,173 [1J NC Retail Iteration 2 Adjusted w/lncrease (c) = (n) 3,617,507 With Increase (h) = (e) + (g) Increase (g) = (h) - (e) 3,549 3,549 3,617,496 634,931 363,173 634,931 363,173 3,748 13,413 1,035,351 3,748 13,413 1,035,351 Weighted Lead Lag Davs (i) 38.19 [1J 38.01 [12J ~[13J 24.79 [1J 29.76 [1J B 9 1O 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 Operation & Maintenance Expense Revenue Increase NCUC Revenue Increase Uncollectible Operation and Maintenace Expense with Increase (L9+L10+L11) Depreciation and Amortization General Taxes Revenue Increase (L 18) General Taxes with Increase (L 16+L17) Interest on Customer Deposits Net Income Taxes Revenue Increase (L24) Income Taxes with Increase (L22 + L23) Amortization of Investment Tax Credit Total Operating Expense (L6+L7+L 12+L14+L 1B+L20+L24+L26) Income for Return (L3 - L27) Interest Expense Return for Equity (L29 - L30) 1,018,190 [1J 3,081 12,554 1,033,825 584,114 [1J 99,446 8,662 [1J [5J (0.19) [1J 99,446 99,446 8,662 8,662 1,078 1,078 [7J 176,159 176,159 (2,093) [1J 2,815,146 177,684 (2,093) 2,992,830 1,089 324,869 159,253 [1J 165,616 299,808 632 299,176 624,677 159,885 464,792 2,460 630 1,830 3,140,015 8,125,593 [1J 4.00% 7.66% [2J Adjusted 3,140,015 8,603 14.94 [1J 128,555 1,105 [1J 129,661 269,247 8,157,817 624,669 [BJ 159,883 [9J 464,786 3,617,496 32,121 7.66% 7.66% [2J Revenue Increase 32,224 [3J 32,224 Notes [1] NC-3502-Adjustment to cash working capital for present revenue annualized, column (c), column (e), and column (h) [2J NC-3504, Total ROR [3J Ties to Line 35, Column (b) [4J Sum of Line 45, Columns (a) + (d) + (g) + U) [5] Reg fee of .14% x revenue requirement [6] Uncollectible fee of .18% x revenue requirement [7J L31 / (1 - Tax Rate: 37.0599%) - L31 [8] Line 35 x Rate of Return: 7.6574% [9] Line 35 x Debt Rate: 4.17% and Debt Ratio: 47% [1 OJ Column (e) = Column (a) [11J Line 3, Column (fj, (i), (I) - Line 33, Column (fj, (i), (I) [12J Docket No. E-2, Sub 1142, E-1 Item 14, Lead Lag [13J Calculation of Average Lead/Lag Day [14] New weighted averages are calculated. [15J Line 45, Columns (d), (g), U) Page 4 of 12 Adjusted w/lncrease 3,617,507 9,911 16.22 160,779 [4J 1,105 [1J 161,885 [15J 8,157,714 7.66% 7.66% [2J 103 137.50 [1J (84.22) [1J 36.50 [12J 269,243 (2,093) 2,992,827 3,617,507 32,224 ~[13J 98.33 [1J [12J 98.33 [13J 93,088 a 28.01 [1J 90.15 [12J [12J 584,114 93,088 [1J Rate Base [CWC Solved for Through Iterative Process] Calculation of Change in Cash Working Capital (CWC) due to Revenue Increase Annual Requirement (L3 and/or L33) Daily Requirement (L42 / 365 Days) Net Lag Days Est. CWC Req. Before Sales Tax Requirement (L43 x L44) Add: Working Capital Related to NC Sales Tax Total Cash Working Capital Requirements (L45 + L46) 11 584,114 99,446 [1J Total Requirement (L27 + L29 = L3) Overall Rate of Return (L29 I L35) Target Rate of Return 667 858 1,526 3,617,495.56 9,911 16.22 [11J 160,779 ~[13J [1J 21.69 [14J 23.19 [14J 90.59 [1J [1J 21.95 [14J NC-3501 Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Adjust cash working capital for proposed revenue For the test period ended December31, 2016 Dollars in Thousands NC Retail Financials Line Adjusted Description No. 1 2 3 4 5 6 7 B 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 Total Adjusted Present Revenue Revenue Increase (L3) Revenues rsolved Through Iterative Process to Produce Target RORl (l27 + L29) Operating Expenses: Fuel Used in Electric Generation Purchased Power Operation & Maintenance Expense Revenue Increase NCUC Revenue Increase Uncollectible Operation and Maintenace Expense with Increase (L9 + L10 + L11) (b) =(c) - (a) 477,492 477,492 3,140,015 634,931 [1J 363,173 [1J 1,018,190 [1J 3,081 12,554 1,033,825 667 858 1,526 584,114 [1J Depreciation and Amortization General Taxes Revenue Increase (L 18) General Taxes with Increase (L 16+L17) Net Income Taxes Revenue Increase (L24) Income Taxes with Increase (L22 + L23) Amortization of Investment Tax Credit Total Operating Expense (L6+L7+L 12+L14+L 1B+L20+L24+L26) Income for Return (L3 - L27) Interest Expense Return for Equity (L29 - L30) =L3) Rate Base [CWC Solved for Through Iterative Process] Adjusted w/lncrease (c) =(n) 3,617,507 Increase U) =(k) - (h) With Weiahted Lead Laa Increase Davs (k) 11 11 =(h) + U) 3,617,507 634,931 363,173 634,931 363,173 3,748 13,413 1,035,351 3,748 13,413 1,035,351 [5J 584,114 584,114 99,446 [1J 99,446 8,662 [1J Interest on Customer Deposits Total Requirement (L27 + L29 withCWC (a) 3,140,015 [1J Revenue Increase NC Retail Iteration 3 99,446 99,446 8,662 8,662 93,088 [1J a 177,684 (2,093) 2,992,830 324,869 159,253 [1J 165,616 299,808 632 299,176 624,677 159,885 464,792 3,140,015 [7J 32,224 8,157,817 (5.24) [13J [1J 21.69 [14J 3,617,507 103 [15J 8,157,817 Overall Rate of Return (L29 I L35) 4.00% 7.66% 7.66% 7.66% [2J 7.66% [2J 7.66% [2J Add: Working Capital Related to NC Sales Tax Total Cash Working Capital Requirements (L45 + L46) Revenue Increase 32,224 [3J 32,224 Notes [1] NC-3502-Adjustment to cash working capital for present revenue annualized, column (c), column (e), and column (h) [2J NC-3504, Total ROR [3J Ties to Line 35, Column (b) [4J Sum of Line 45, Columns (a) + (d) + (g) + U) [5] Reg fee of .14% x revenue requirement [6] Uncollectible fee of .18% x revenue requirement [7J L31 / (1 - Tax Rate: 37.0599%) - L31 [8] Line 35 x Rate of Return: 7.6574% [9] Line 35 x Debt Rate: 4.17% and Debt Ratio: 47% [1 OJ [11J [12J [13J 137.50 [1J (2,093) 2,992,830 Target Rate of Return 3,140,015 8,603 14.94 [1J 128,555 1,105 [1J 129,661 (0.19) [1J 98.33 [1J [12J 98.33 [13J 269,247 624,677 [BJ 159,885 [9J 464,792 3,617,507 8,125,593 [1J Adjusted 28.01 [1J 90.15 [12J _ _ _ [12J 27.60 [13J ~[12J 269,247 (2,093) [1J 2,815,146 Calculation of Change in Cash Working Capital (CWC) due to Revenue Increase 24.79 [1J 29.76 [1J (84.22) [1J 176,159 176,159 93,088 Annual Requirement (L3 and/or L33) Daily Requirement (L42 / 365 Days) Net Lag Days Est. CWC Req. Before Sales Tax Requirement (L43 x L44) (I) 38.19 [1J 38.01 [12J ~ [13J Column (e) = Column (a) Line 3, Column (fj, (i), (I) - Line 33, Column (fj, (i), (I) Docket No. E-2, Sub 1142, E-1 Item 14, Lead Lag Calculation of Average Lead/Lag Day [14] New weighted averages are calculated. [15J Line 45, Columns (d), (g), U) Page 5 of 12 Adjusted w/lncrease 3,617,507 9,911 16.22 160,779 [4J 1,105 [1J 161,885 3,617,507 9,911 16.22 [11J 160,779 23.19 [14J 90.59 [1J [1J 21.95 [14J NC-3501 Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Adjust cash working capital for proposed revenue For the test period ended December31, 2016 Dollars in Thousands NC Retail Financials Line No. 1 2 3 4 5 6 7 Description Total Adjusted Present Revenue Revenue Increase (L3) Revenues rsolved Through Iterative Process to Produce Target RORl (l27 + L29) Operating Expenses: Fuel Used in Electric Generation Purchased Power Adjusted with CWC (a) 3,140,015 [1J Revenue Increase (b) = (c) - (a) 477,492 477,492 3,140,015 634,931 [1J 363,173 [1J NC Retail Iteration 4 Adjusted w/lncrease (c) = (n) With Increase (n) = (k) + (m) Increase (m) = (n) - (k) 3,617,507 3,617,507 634,931 363,173 634,931 363,173 3,748 13,413 1,035,351 3,748 13,413 1,035,351 Weiahted Lead Laa Davs (o) 38.19 [1J 38.01 [12J ~[13J 24.79 [1J 29.76 [1J B 9 1O 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 Operation & Maintenance Expense Revenue Increase NCUC Revenue Increase Uncollectible Operation and Maintenace Expense with Increase (L9+L10+L11) Depreciation and Amortization General Taxes Revenue Increase (L 18) General Taxes with Increase (L 16+L17) Interest on Customer Deposits Net Income Taxes Revenue Increase (L24) Income Taxes with Increase (L22 + L23) Amortization of Investment Tax Credit Total Operating Expense (L6+L7+L 12+L14+L 1B+L20+L24+L26) Income for Return (L3 - L27) Interest Expense Return for Equity (L29 - L30) 1,018,190 [1J 3,081 12,554 1,033,825 584,114 [1J 99,446 8,662 [1J 584,114 99,446 99,446 8,662 8,662 93,088 [1J 176,159 176,159 (2,093) [1J 2,815,146 177,684 (2,093) 2,992,830 324,869 159,253 [1J 165,616 299,808 632 299,176 624,677 159,885 464,792 3,140,015 8,125,593 [1J a 4.00% 7.66% [2J Adjusted 3,140,015 8,603 14.94 [1J 128,555 1,105 [1J 129,661 269,247 [7J 8,157,817 7.66% 7.66% [2J Revenue Increase 32,224 [3J 32,224 Notes [1] NC-3502-Adjustment to cash working capital for present revenue annualized, column (c), column (e), and column (h) [2J NC-3504, Total ROR [3J Ties to Line 35, Column (b) [4J Sum of Line 45, Columns (a) + (d) + (g) + U) [5] Reg fee of .14% x revenue requirement [6] Uncollectible fee of .18% x revenue requirement [7J L31 / (1 - Tax Rate: 37.0599%) - L31 [8] Line 35 x Rate of Return: 7.6574% [9] Line 35 x Debt Rate: 4.17% and Debt Ratio: 47% [1 OJ Column (e) = Column (a) [11J Line 3, Column (fj, (i), (I) - Line 33, Column (fj, (i), (I) [12J Docket No. E-2, Sub 1142, E-1 Item 14, Lead Lag [13J Calculation of Average Lead/Lag Day [14] New weighted averages are calculated. [15J Line 45, Columns (d), (g), U) Page 6 of 12 Adjusted w/lncrease 3,617,507 9,911 16.22 160,779 [4J 1,105 [1J 161,885 269,247 (2,093) 2,992,830 624,677 [BJ 159,885 [9J 464,792 3,617,507 3,617,507 32,224 28.01 [1J 90.15 [12J [12J ~[13J (0.19) [1J 98.33 [1J [12J 98.33 [13J 137.50 [1J (84.22) [1J 36.50 [12J 93,088 Rate Base [CWC Solved for Through Iterative Process] Calculation of Change in Cash Working Capital (CWC) due to Revenue Increase Annual Requirement (L3 and/or L33) Daily Requirement (L42 / 365 Days) Net Lag Days Est. CWC Req. Before Sales Tax Requirement (L43 x L44) Add: Working Capital Related to NC Sales Tax Total Cash Working Capital Requirements (L45 + L46) [5J 584,114 99,446 [1J Total Requirement (L27 + L29 = L3) Overall Rate of Return (L29 I L35) Target Rate of Return 667 858 1,526 a [15J B,157,817 7.66% 7.66% [2J ~[13J [1J 21.69 [14J 23.19 [14J 90.59 [1J [1J 21.95 [14J Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Adjust cash working capital for present revenue annualized and proposed revenue For the test period ended December31, 2016 Dollars in Thousands NC-3502 NC Retail Line No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 Description Revenue Per Books Adjustments (a) (b) 3,551,924 [1] Rate Schedule Revenue Annualize Retail revenues for current rates Adjust Other Revenue Normalize for weather Annualize revenues for customer growth Eliminate unbilled revenues Eliminate costs recovered through non-fuel riders Normalize for storm costs Rounding - Revenue Revenue - Adjustments (Sum Lines 5 through 12) Total Adjusted Revenue (L2 + L13) Operating Expenses: Fuel Used in Electric Generation Normalize for weather Annualize revenues for customer growth Update fuel costs to approved rate Rounding - Fuel Fuel Used in Electric Generation - Adjustments (Sum Lines 19 through 22) o 780,539 [2] 780,539 354,140 [2] Total Adjusted Purchased Power (L27 + L30) 354,140 Operation & Maintenance Expense Annualize Retail revenues for current rates Adjust Other Revenue Normalize for weather Annualize revenues for customer growth Eliminate costs recovered through non-fuel riders - energy related Eliminate costs recovered through non-fuel riders A&G Adjust for ongoing environmental costs Normalize for storm costs Normalize for storm costs - amortization Annualize O&M non-labor expenses Normalize O&M labor expenses Update benefits costs Levelize nuclear refueling outage costs Amortize rate case costs Adjust aviation expenses Adjust for change in NCUC regulatory fee Adjust O&M for executive compensation Adjust for Customer Connect Adjust for Long Term Service Agreements 989,958 [2] 989,958 3,140,015 [4] 634,931 [4] [4] [4] [4] [4] [4] [4] [4] [4] [4] [4] [4] [4] [4] [4] [4] [4] [4] [4] [4] Adjusted Before Increase (f) (g) (h) = (f) + (g) 38.17 [1] 38.17 38.01 31.49 38.01 38.01 38.01 38.01 38.01 o 3,140,015 [2] [2] [2] [2] [2] [2] [2] 38.17 [9] 0.03 [10] 24.79 [1] 24.79 24.79 24.79 24.79 o 634,931 354,140 9,033 38.01 31.49 38.01 38.01 38.01 38.01 38.01 24.79 [9] 29.61 [2] [2] [2] [2] 0.00 [10] [1] 35.54 [2] 38.19 [9] 24.79 24.79 24.79 24.79 24.79 24.79 [9] 29.61 35.54 9,033 363,173 [4] o 363,173 989,958 (1,179) (3) (46) 34 (47,491) 29.61 [9] 90.15 90.15 90.15 90.15 26.25 26.25 26.25 26.25 0.00 26.25 29.14 29.14 0.00 0.00 26.25 90.15 29.14 26.25 26.25 3,847 (6,122) 39,582 (2,199) 526 (1,217) 858 (1,625) 7,715 (3,016) o o 43,867 1,033,825 [4] 0.15 [10] 26.25 [1] 129,115 (10,054) 43,867 43,867 [5] Page 7 of 12 Adjustments o (145,608) [5] (1,179) (3) (46) 34 (47,491) (91,414) 129,115 (10,054) 26,557 3,847 (6,122) 39,582 (2,199) 526 (1,217) 858 (1,625) 7,715 (3,016) Per Books (368,354) (2,352) (14,520) 10,758 (18,051) (31,529) 12,139 780,539 (4,999) 2,697 (143,306) (0) (145,608) 9,033 [5] Rounding - O&M withCWC (e) = (c) + (d) (4,999) [4] 2,697 [4] (143,306) [4] (0) (145,608) 9,033 [4] 1 9,033 Operation & Maintenance Expense - Adjustments (Sum Lines 35 through 54) Adjusted inCWC (d) (411,909) (411,909) [5] Purchased Power Adjust purchased power Rounding - Purchased Power Purchased Power - Adjustments (Sum Lines 28 through 29) Total Adjusted Operation & Maintenance Expense (L34 + L55) [4] [4] [4] [4] [4] [4] [4] (411,909) Total Adjusted Fuel Used in Electric Generation (L 18 + L23) Chanae inCWC (c) = (a) + (b) 3,551,924 (368,354) (2,352) (14,520) 10,758 (18,051) (31,529) 12,139 3,551,924 Lead Lag Days Financials Adjusted Before Chanae o 1,033,825 26.25 [9] [2] [2] [2] [2] [2] [2] [2] [2] [2] [2] [2] [2] [2] [2] [2] [2] [2] [2] [2] 1.76 [10] 29.76 [9] 26.25 90.15 90.15 90.15 90.15 26.25 26.25 26.25 26.25 0.00 26.25 29.14 29.14 0.00 0.00 26.25 90.15 29.14 26.25 26.25 28.01 [9] Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Adjust cash working capital for present revenue annualized and proposed revenue For the test period ended December31, 2016 Dollars in Thousands NC-3502 NC Retail Line No. 1 59 60 61 62 63 64 65 66 67 6B 69 70 71 72 73 74 75 76 77 7B 79 BO B1 B2 B3 B4 B5 B6 B7 BB B9 90 91 92 93 94 95 96 97 9B 99 100 101 102 103 104 105 106 107 10B 109 110 111 112 113 114 115 116 Description Per Books Adjustments (a) (b) Depreciation and Amortization Update fuel costs to approved rate Eliminate costs recovered through non-fuel riders Annualize Depreciation on year end plant balances Adjust for new depreciation rates Adjust for post test year additions to plant in service Adjust nuclear decommissioning expense Adjust reserve for end of life nuclear costs Adjust for Harris COLA Amortize deferred environmental costs Adjust for change in NCUC regulatory fee Adjust for Deferred Tax Liability Rounding - D&A Depreciation and Amortization - Adjustments (Sum Lines 60 through 71) 4B3,B99 [2] Total Adjusted Depreciation and Amortization (L59 + L72) 4B3,B99 General Taxes Eliminate costs recovered through non-fuel riders Annualize property taxes on year end plant balances Adjust for post test year additions to plant in service Normalize O&M labor expenses Adjust aviation expenses Rounding - General Taxes General Taxes - Adjustments (Sum Lines 77 through 82) 100,952 [2] Total Adjusted General Tax (L76 + L83) 100,952 (4,379) (4B,930) 15,B02 67,642 23,034 9,902 5,731 9,065 52,065 376 (30,093) B,662 [2] Total Adjusted Interest on Customer Deposits (LB? + LBB) B,662 Income Taxes Total Adjusted Amortization of Investment Tax Credit (L 101 + L 104) Total Operating Expense (L25+L32+L57+L74+L85+L90+L99+L 106) Income for Return (L 15 - L 108) Interest Expense Return for Equity (L 110 - L 111) withCWC (e) = (c) + (d) 4B3,B99 (4,379) (4B,930) 15,B02 67,642 23,034 9,902 5,731 9,065 52,065 376 (30,093) o 100,215 100,215 [5] 5B4,114 [4] [4] [4] [4] [4] [4] o o (1,506) (1,506) [5] 99,446 [4] Adjustments Adjusted Before Increase (f) (g) (h) = (f) + (g) 0.00 [1] 24.79 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 o 5B4,114 100,952 (6,726) 2,669 2,2B6 2BO (15) (1,506) Per Books 0.00 [9] [2] [10] [10] [10] [10] [10] [10] [10] [10] [10] [10] (0.19) [10] 96.53 [1] 131.97 184.15 184.15 33.60 33.60 o 99,446 B,662 96.53 [9] [2] [2] [2] [2] [2] 1.BO [10] 137.50 [1] 0.00 24.79 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (0.19) [9] 96.53 131.97 184.15 184.15 33.60 33.60 9B.33 [9] 137.50 o 247,213 [2] 1B1 [4] (156,621) [4] 2,134 [4] PF INC TAX-Adjust Income Taxes PF INC TAX-Interest Sync Rounding - Income Taxes Income Taxes - Adjustments (Sum Lines 93 through 96) Amortization of Investment Tax Credit PF ITC-Annualize depreciation on year end plant balances Rounding - ITC Amort. of Investment Tax Credit-Adjustments (Sum Lines 102 through 103) Adjusted inCWC (d) o [5] PF INC TAX-ADJUST CASH WORKING CAPITAL Total Adjusted Income Taxes (L92 + L97) Chanae inCWC (c) = (a) + (b) 100,215 (6,726) 2,669 2,2B6 2BO (15) Interest on Customer Deposits Interest on Customer Deposits - Adjustments [4] [4] [4] [4] [4] [4] [4] [4] [4] [4] [4] Lead Lag Days Financials Adjusted Before Chanae 247,213 o o (154,306) (154,306) [5] 1,230 [5] (147 074) 5B9,BB5 165,499 [3] 424,3B7 Total Requirement (L 1OB + L 110 = L 15) 3,551,924 RATE BASE B,465,22B [2] (264,B35) (5,757) [5] (259,07B) (314,72B) [5] 137.50 [9] (0.00) [10] (B.B7) [1] 36.50 [2] 36.50 [2] 36.50 [2] 92,907 [4] _ _ _1_B1_ [7] 93,0BB (B.B7) [9] (75.35) [10] 0.00 [1] o 0.00 [2] 137.50 [9] (B.B7) 36.50 36.50 36.50 (B4.22) [9] 0.00 0.00 1,230 1,230 (2,093) [4] 2,B14,965 325,050 159,742 [6] 165,30B o 1B1 (1B1) (4BB) [6] 307 3,140,015 Page 8 of 12 B,662 (3,323) o [4] 1,230 [4] 1,230 (3,323) o 247,213 181 (156,621) 2,134 (154,306) (3,323) [2] 2 962 039 B,662 [4] B,150,500 (24,907) [B] 0.00 [9] 0.00 [10] 0.00 [9] 2 B15146 (2,093) 21.BO [9] (1.00) [10] 20.79 [9] 324,B69 159,253 165,616 25.42 [9] 90.59 0.00 19.10 [10] 0.00 [10] 0.00 [10] 44.52 [9] 90.59 0.00 3,140,015 22.40 [9] O.B5 [10] 23.25 [9] B,125,593 [2] Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Adjust cash working capital for present revenue annualized and proposed revenue For the test period ended December31, 2016 Dollars in Thousands NC-3502 NC Retail Line No. Description Adjustments (b) Per Books (a) Lead Lag Days Financials Adjusted Before Chanae Chanae Adjusted inCWC inCWC withCWC (c) = (a) + (b) (d) (e) = (c) + (d) 1 117 118 Overall Rate of Return (L 110 I L 116) 6.97% Page 9 of 12 3.99% 4.00% Per Books (f) Adjustments (g) Adjusted Before Increase (h) = (f) + (g) Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Adjust cash working capital for present revenue annualized and proposed revenue For the test period ended December31, 2016 Dollars in Thousands NC-3502 NC Retail Line Description No. Adjustments (b) Per Books (a) Chanae Adjusted inCWC (c) = (a) + (b) inCWC (d) withCWC (e) = (c) + (d) 1 119 120 121 122 123 Chanae Calculation of Change in Cash Working Capital CCWC) due to Adjustments Revenue Lag Days (Per Line 15, Columns (f) & (h)) Requirement Lead Days (Per Line 114, Columns (f) & (h)) 124 125 Net Lag Days (L 122 - L 123) 126 127 Annual Requirement (L 114) 128 Daily Requirement (L 127 / 365 Days) 129 Net Lag Days (L 125, Rounded Per Books) 130 Est. CWC Req. Before Sales Tax Requirement (L 128xL129) 131 132 Add: Working Capital Related to NC Sales Tax 133 134 Total Cash Working Capital Requirements (L130 + L132) Per Books ~7 in CWC 22.40 15.77 14.94 3,140,015 8,603 14.94 128,555 1,105 [1] Notes: [1] Columns (a) and (f) match NC 3503 E-1 Item 14, Lead Lag Summary/Detail [2] Bateman Exhibit 1; Page 1; Col. 2 and Col. 4 [3] NC 3400; Col c; Line 12 [4] Bateman Exhibit 1; Adjustments [5] [6] [7] [8] Adjusted 38.19 23.25 3,551,924 9,731 15.77 153,463 154,568 Column (b) = Column (c) - Column (a) Line 116 x (Bateman Exhibit 1; Page 2; Col 7; Line 1) x (Bateman Exhibit 1; Page 2; Col 2; Line 1) Interest Expense: - L 111 x Tax Rate: 37.0599% Line 134, Column (b) [9] New weighted averages calculated. [1 OJ Column (g) = Column (h) - Column (fj Page 10 of 12 1,105 [1] (24,907) [5] Lead Lag Days Financials Adjusted Before Chanae 129,661 Per Books (f) Adjustments (g) Adjusted Before Increase (h) = (f) + (g) NC-3503 E-1 Item 14 Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Cash Working Capital for NC Retail Operations - Lead Lag Summary For the test period ended December 31, 2016 Dollars in Thousands Line ..l:!Q_ Actual Annual Ex12ense [A] Descri12tion Lead (Lag) Days [BJ Weighted Amount [CJ Calculation of NC Retail Amount: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 Total Revenue Lag Operation & Maintenance Expense Depreciation and Amortization Taxes Other Than Income Taxes Interest on Customer Deposits Net Income Taxes ITC Income for Return Total Requirements (Sum L3 through L9) 38.17 $ $ 2,124,637 483,899 100,952 8,662 247,213 (3,323) 589 885 3 551 924 Revenue Lag Days (L 1) Requirements Lead Days (-L 10) Net Lag Days (L 12+L13) Daily Requirements (Line 9, Col. A divided by 365) Estimated Cash Working Capital Requirements (L 14 x L 15) Add: Cash Working Capital Related to NC Sales Tax Total Cash Working Capital Requirements (L 17 + L 18) 26.27 0.00 96.53 137.50 -8.87 0.00 25.42 22.40 $ 9,744,591 1,191,003 (2, 192,512) $ 14 992 520 79 555 804 $ 9,731 $ 153,463 1 105 154 568 38.17 -22.40 15.77 $ Calculation of Total Company and Jurisdictional Amounts: NC Retail Factor Total Company Cash Working Capital Requirements (L 19 / L22) 65.1597% [1] $ NC Retail Factor SC Retail Factor NC Wholesale Factor SC Wholesale Factor NCEMPA Factor Total (Sum L26 through L30) NC Retail Cash Working Capital Requirement (L24 x L26) SC Retail Cash Working Capital Requirement (L24 x L27) NC Wholesale Cash Working Capital Requirement (L24 x L28) SC Wholesale Cash Working Capital Requirement (L24 x L29) NCEMPA Cash Working Capital Requirement (L24 x L30) Total Company Cash Working Capital Requirement (Sum L33 through L36) [1] Allocation Facotr - Net Book Plant 55,820,202 237,214 65.1597% 0.0000% 0.0000% 0.0000% 0.0000% 65.1597% $ 154,568 $ 154 568 NC-3504 Duke Energy Progress, LLC Docket No. E-2, Sub 1142 Adjustment to Cash Working Capital - Input Worksheet For the test period ended December 31, 2016 Line No 1 2 3 4 5 6 7 Description Debt Equity Total ROR (L 1 + L2) Statutory tax rate Statutory regulatory fee percentage rate Uncollectibles rate Rate 4.17% [1] 10.75% [1] Ratio 47.00% [1] 53.00% [1] 37.0599% [4] 0.14% [5] 0.18% [6] Notes: [1] Docket No. E-2, Sub 1142, Bateman Exhibit 1, Page 2 [2] Debt Rate x Debt Ratio [3] ROE x Equity Ratio [4] NC-0104 - 2017 Tax Rate, Line 10 [5] NC-0103- NCUC Statutory Regulatory Fee Percentage Rate, Docket No. M-100, Sub 142 [6] NC-0105 - Development of Uncollectibles Rate Weighted 1.9599% [2] 5.6975% [3] 7.6574% DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For the test year ended December 31, 2016 11. Item No.11 Provide a schedule showing a comparison of the total company balance in other electric revenue accounts for each month's activity for the test year and the twelve months preceding the test year for each account and subaccount in the applicant's chart of accounts that requires allocation to North Carolina retail operations. See Format l 2a. Please see attached "DEP Rate Case El 11 Revenue Comparison.xlsx" DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 ltemNo.11 NCUC Form E-1 Data Request Forthetestyearended December31, 2016 Time Period Test Year Prior Year Test Year Prior Year Test Year Prior Year TestYear PriorYear Account Number & Descriotion Total For 12 Months 0450100 450- LATE PAYMENT CHARGE- RETAIL 0450100 450- LATE PAYMENT CHARGE- RETAIL Increase (Decrease) 577,970 809 642 (231,672) 690,412 850 881 (160,469) 951,475 1184 837 (233,362) 658,324 850 654 (192,330) 601,954 644 631 (42,676) 628,980 653 624 0450200 450 - CHARGE ON RETURNED CHECKS 0450200 450- CHARGE ON RETURNED CHECKS Increase (Decrease) 17,559 18 062 16,817 15 530 1,267 16,565 17323 18,365 18 950 (503) (758) (586) 0451100 451 - MISCELLANEOUS SERVICE REVENUES 0451100 451 - MISCELLANEOUS SERVICE REVENUES Increase (Decrease) 194,562 184 986 9,576 118,074 115789 2,265 152,134 156 983 190,212 215133 (24,921) 0451100 451-SERVICECHARGE 0451100 451-SERVICECHARGE Increase (Decrease) 458,354 419 548 36,806 423,950 428 967 487,761 497 425 495,662 494 433 1,229 (5,017) (4,849) (9,664) Test Year Prior Year 0454004 454 -POLE RENTAL 0454004 454-POLE RENTAL Increase (Decrease) 901,044 1209774 (306,730) 1205773 (1,205,773) (841,431) 1284385 (2,125,617) Test Year Prior Year 0454100 454- RENT FROM ELECTRIC PROPERTY 0454100 454- RENT FROM ELECTRIC PROPERTY Increase (Decrease) 1,570,013 963 338 606,675 1,356,409 1 008 557 347,852 0 Test Year Prior Year Test Year Prior Year 0454100 454- LEASED FACILITIES CHARGE-ACT 0454100 454- LEASED FACILITIES CHARGE-ACT Increase (Decrease) 0454100 454- LEASED FAG CHRG-TELEMETRY O&M 0454100 454- LEASED FAG CHRG-TELEMETRY O&M Increase (Decrease) 129,626 129 628 (2) 450,200 762 901 (312,700) 317,697 594 585 (276,868) 19,822 21 512 20,554 18 543 2,011 231,529 698 946 (467,417) 18,950 19723 18,208 19 940 (773) (1,732) 21,666 20650 1,016 22,211 22875 (1,447) (664) (1,690) 254,066 178 916 75,150 171,955 259 213 160,268 166172 174,898 171 590 3,306 214,256 198641 15,615 241,556 278 811 (37,255) (357,722) (87,258) 179,828 81 818 96,011 252 963 (610,664) 1,694,086 2 261 013 (566,927) 519,606 475 798 43,808 569,261 596 030 (26,769) 592,207 612 898 (20,690) 645,499 599 752 45,748 558,974 586 947 (27,973) 491,183 518051 (26,666) 439,320 432 720 6,600 414,391 461 665 (47,274) 6,096,168 6124232 (28,064) 0 18,530 18131 399 7,525,102 9 765 605 (2,240,503) 227,634 231 074 (3,440) 1 208 043 (1,206,043) 1216206 (1,216,206) 739 495 (739,495) 1138 753 (1, 136,753) 1133 325 (1, 133,325) 1139171 (1,139,171) 1129810 (1,129,610) 1137 566 (1,137,566) 0 (528171) 526,171 59,613 12 014130 (11,954,517) 960,390 1754301 (793,911) 1,923,837 1 930 998 (7,161) 1,358,049 1 246 976 111,073 1,255,310 1 528 056 (272,746) 1,135,779 952 998 182,761 1,828,947 1212477 616,470 1,280,048 1679705 (399,657) 1,083,908 1588833 (504,925) 1,185,600 1153 685 31,915 1,153,699 1175 372 (21,673) 16,091,989 16 195 297 (103,306) 129,628 129 628 129,628 129 628 129,628 129 628 129,628 129 628 129,628 129 628 129,628 129 628 129,628 129 628 129,628 129 628 129,628 129 628 129,628 129 628 1,425,907 1555537 (129,630) 0 0 0 0 0 0 0 2,825 2 800 2,825 2800 2,825 2 800 2,825 2 800 2,825 2 800 2,825 2 800 2,825 2 800 2,825 2800 2,825 2800 2,825 2 800 2,825 2 800 25 25 25 25 25 25 25 25 25 25 25 45,681 39118 6,563 38,952 46378 37,756 40 314 37,139 39263 36,654 39258 36,552 39104 36,613 39110 36,626 37 864 36,623 37 864 36,623 37 874 36,620 37 864 (7,425) (2,558) (2,124) (2,603) (2,551) (2,497) (1,238) (1,241) (1,251) (1,245) 453,697 473 090 (19,393) 17,888 31 093 (13,205) 12,309 11 542 11,310 17261 3,598 4480 5,702 7113 3,778 4650 20,783 29492 (5,951) 35,039 33237 1,802 4,650 5 092 767 35,025 22218 12,807 28,043 4650 23,393 188,706 180 470 8,236 1,055,963 1,897,040 1,039,401 1,897,040 1,111,401 133196 976,205 1,039,401 0 1,055,963 1,039,401 1,039,401 1,043,401 87 064 956,336 20,830 0 20,830 86,302 0 173,438 0 86,302 173,436 37,858 39 079 Test Year Prior Year 0454105 454- PT HOLDINGS !RU/REVENUE SHARING 0454105 454- PT HOLDINGS !RU/REVENUE SHARING Increase (Decrease) 10,581 9642 Test Year Prior Year 18,387 19 835 (5,905) 893,819 1057053 (163,234) 25 0454100 454- FACILITY CHARGE-COGENERATION 0454100 454- FACILITY CHARGE-COGENERATION Increase (Decrease) 0454200 454 - POLE & LINE ATTACHEMENTS 0454200 454 - POLE & LINE ATTACHEMENTS Increase (Decrease) 129 628 (129,628) 983,300 879 289 104,011 2,825 2 800 Test Year Prior Year Test Year Prior Year 0 (24,644) 539,441 778 562 (239,121) (1,221) 939 181,761 150 311 31,450 0454300 454 - TOWER LEASE REVENUE 0454300 454- TOWER LEASE REVENUE Increase (Decrease) 161,761 181,761 0 141,196 0 141,196 (882) (442) (1,411) 1,047,401 1,039,401 1,047,401 1,039,401 (872) 1,039,401 153 684 865,717 (8,709) 1,039,401 (5,732) 1,039,401 (5,732) 33,900 33600 300 11,528,239 524 256 11,003,983 603,527 0 603,527 Test Year Prior Year 0454400 454 - OTHER ELECTRIC RENTS 0454400 454- OTHER ELECTRIC RENTS Increase (Decrease) 335,077 288 488 46,569 251,236 443 029 (191,793) 269,976 251 243 18,733 518,045 223 142 294,903 252,005 988 933 (736,928) 353,677 323 825 29,852 221,462 251721 (30,259) 334,922 598 697 (263,775) 2,045,298 (23 648) 2,068,947 390,310 228 077 162,233 268,732 227 821 40,911 306,208 223 502 82,706 5,546,948 4 024 829 1,522,116 Test Year Prior Year 0454500 454 - NCEMC LEASED FACILITIES-ACT 0454500 454- NCEMC LEASED FACILITIES-ACT Increase (Decrease) 113,775 111120 2,655 113,775 111120 2,655 113,775 111120 2,655 113,775 111120 2,655 111,978 123 403 (11,425) 113,137 113775 113,137 113775 113,137 113775 113,137 113 775 113,137 113 775 113,137 113775 113,137 113775 1,359,036 1364307 (638) (638) (638) (638) (638) (638) (638) 0454510 454- LEASED FAG CHRG 0454510 454- LEASED FAG CHRG Increase (Decrease) 0 197 929 0 197 929 0 197 929 (237,259) 0 197 929 0 197 929 0 197 929 (197,929) (197,929) (197,929) (197,929) (197,929) (197,929) Test Year Prior Year 197 929 (435,168) (5,271) (237,259) 1385503 (1,622, 762) DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 ltemNo.11 NCUC Form E-1 Data Request Forthetestyearended December31, 2016 Time Period Test Year Prior Year Test Year Prior Year Account Number & Descriotion Total For 12 Months 0456001 456 - OTHER ELECTRIC REVENUES 0456001 456- OTHER ELECTRIC REVENUES Increase (Decrease) 21,906 10 334 11,572 (53,081) 13,394 10 314 3,079 (30,174) (36,042) (3 328) (49,753) 33,721 11 833 21,888 0456002 456 - DEMAND PROFILE PLOT CHARGE 0456002 456- DEMAND PROFILE PLOT CHARGE Increase (Decrease) 18,390 18631 68,994 23 334 45,660 (67,884) (26,489) 10 162 (40,336) (1617) (34,425) 19,219 17798 1,421 19,666 20351 (685) 19,162 18605 557 19,230 17 562 1,668 19,682 20 322 (241) 20 078 (87,962) 18324 52555 (44,813) 19,585 18798 767 21,236 17626 3,609 13 13 13 13 13 13 13 13 13 13 13 13 13 13 42,085 31100 10,985 59,154 30 136 29,018 53,329 39441 13,888 54,543 31 587 22,956 52,901 30614 22,286 55,254 32169 23,085 50,444 32120 18,324 0 6 370 (6,370) 0 2000 2,000 (640) Test Year Prior Year 0456004 456- MAGNETIC TAPE PULSE DATA 0456004 456- MAGNETIC TAPE PULSE DATA Increase (Decrease) Test Year Prior Year 0456005 456 - ELEC REV-COGEN/SMALL PWR PRO 0456005 456- ELEC REV-COGEN/SMALL PWR PRO Increase (Decrease) Test Year Prior Year 0456050 456 - TRANSMISSION STUDY REVENUE 0456050 456- TRANSMISSION STUDY REVENUE Increase (Decrease) Test Year Prior Year 0456100 456 - PROFIT OR LOSS ON SALE OF M&S 0456100 456- PROFIT OR LOSS ON SALE OF M&S Increase (Decrease) 0 2668 (2,668) Test Year Prior Year 0456102 456 - DISTRIBUTION CHARGE - NElWORK 0456102 456- DISTRIBUTION CHARGE- NElWORK Increase (Decrease) 47 396 (47,396) Test Year Prior Year 0456103 456 - METERING - NElWORK 0456103 456- METERING- NElWORK Increase (Decrease) Test Year Prior Year 0456104 456 - TRANSMISSION NElWORK CHARGE 0456104 456- TRANSMISSION NElWORK CHARGE Increase (Decrease) Test Year Prior Year (36,413) (126,705) (84,542) 17,349 46 835 (29,486) 39183 (75,597) 238 008 (364,714) 19,812 19701 111 20,146 19101 1,045 19,120 18 023 1,096 17,951 18649 (698) 233,200 225168 8,031 13 13 13 13 13 13 13 13 13 13 152 152 48,097 33 098 14,999 68,896 35309 33,588 67,046 36486 30,560 72,325 38134 34,191 69,031 40 599 28,432 693,106 410 793 282,313 0 0 63693 (63,693) 68063 (68,063) 327 0 13 (327) 0 13 0 (180,090) (180,090) (180,090) (180,090) (180,515) (179,665) (416,645) 25 521 (205,611) 25 521 (205,611) 25521 (205,611) 25 321 (205,411) 25 321 (205,411) 25 321 (205,836) 25 321 (204,986) 25 321 (441,966) 5,741,606 6 871 326 (1, 129,720) 5,386,033 7 396 281 (2,010,248) 3,811,715 5 300 956 (1,489,241) 3,774,588 3 386 030 388,558 3,978,107 4 384 783 (406,676) 3,357,669 5 475 852 (2,118,183) 5,868,955 5 048 358 820,598 5,687,770 4 705 807 981,963 0456105 456 - SCH ED, SYS CNTL, DIS-NElWORK 0456105 456- SCHED, SYS CNTL, DIS-NElWORK Increase (Decrease) 138,906 160 748 (21,842) 113,144 173 935 (60,791) 84,026 120 948 (36,922) 79,042 73202 5,840 86,007 99 076 (13,068) 111,790 131 928 (20,138) 126,588 120 702 5,886 277,510 120 192 157,318 Test Year Prior Year 0456106 456 - REACTIVE PURNOLT CNTL SVC 0456106 456- SCHED, SYS CNTL, DIS-NElWORK Increase (Decrease) 337,942 339181 (1,239) 295,157 374 322 (79,165) 214,280 244 391 (30,111) 202,833 128148 74,685 221,365 192 698 28,667 287,331 274 816 12,514 324,023 250 548 73,475 Test Year Prior Year 0456110 456 - TRANSMISSION CHARGE PTP 0456110 456- TRANSMISSION CHARGE PTP Increase (Decrease) 188,709 215 301 (26,592) 186,290 199 548 (13,258) 631,413 213 367 418,046 393,849 183 034 210,814 245,183 187 831 57,352 280,523 177 527 102,996 Test Year Prior Year 0456111 456 - SEPA CUMBERLAND & KERR 0456111 456- SEPA CUMBERLAND & KERR Increase (Decrease) 122,834 127 854 (5,020) 122,834 127 854 (5,020) 122,834 127 854 (5,020) 122,834 127 854 (5,020) 201,102 55 090 146,012 Test Year Prior Year 0456117 456 - WHEELING - TRANSMISSION 0456117 456-WHEELING- TRANSMISSION Increase (Decrease) 0 5257 (5,257) 2,578 15,339 134 2,444 440 14,899 14,805 2705 12,100 11,849 1743 10,106 198,580 233 522 (34,942) 424,112 156 400 267,712 242,848 162172 80,676 1,726,989 111424 1,615,565 (1,209,438) 270 050 (1,479,488) 0456118 456 - REVENUE SHARING-DUKE 0456118 456- REVENUE SHARING-DUKE Increase (Decrease) 2 2981 (2,979) 0 (47 396) 47,396 (180,090) Test Year Prior Year (31,986) 209,659 (180 090) 389,748 0 (732 056) 732,056 (2,515,907) (517190) (1,998, 717) (630,177) (209,659) (208,459) (180 090) (450,087) (180 090) (29,569) (180 090) (28,369) 3,666,309 3 322 027 344,282 4,473,395 4 465 105 8,291 4,827,986 3411 915 1,416,071 55,927,465 59 089 422 (3,161,957) 102,191 130 875 (28,684) 120,392 75629 44,763 111,529 105128 6,401 136,546 96495 40,051 1,487,672 1408858 78,814 226,989 309 811 (82,822) 306,912 318 403 (11,491) 151,811 202 028 (50,217) 225,888 269 885 (43,997) 284,901 247 132 37,769 3,079,432 3 151 363 (71,930) 651,005 182 757 468,248 591,475 180 788 410,687 329,267 176712 152,555 248,925 465 496 (216,570) 278,819 411 382 (132,562) 274,530 176197 98,332 4,299,987 2 769 940 1,530,048 128,425 122 834 5,591 128,425 122 834 5,591 128,425 122 834 5,591 128,425 122 834 5,591 128,425 122 834 5,591 128,425 122 834 5,591 128,425 122 835 5,590 1,591,413 1426346 165,066 4,615 0 1,249 0 1,249 47,368 205 47,163 422 (4,390) 6,755 43 752 (36,997) 28495 (28,495) 0 13740 4,615 (13,740) 104,979 101 282 3,697 346,367 312 317 34,050 101,229 181130 (79,902) 627,808 83187 544,622 376,108 234 342 141,767 316,272 294 652 21,620 131,154 171203 (40,048) 5,353,332 5 320 982 32,350 0 (732 056) 732,056 4812 283,466 277 802 5,665 0 3,565,498 2 488 201 1,077,297 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 ltemNo.11 NCUC Form E-1 Data Request Forthetestyearended December31, 2016 Account Number & Descrie!;ion Time Period Test Year Prior Year 0456119 456 - WHEELING PROD ANCILLARY SERV 0456119 456 - WHEELING PROD ANCILLARY SERV Increase (Decrease) Test Year Prior Year 0456191 0456191 Test Year Prior Year Januarv Februarv March Aetl! Mm! ~ June 0 462 (462) 236 12 224 1,404 39 1,365 1,363 238 1,125 1,088 154 934 (28,963) (254 871) 225,908 (32,228) (179) (32,049) (30,035) 4 (30,039) (23,488) (2) (23,466) (26,199) 0 (26,199) (31,451) (39) (31,412) 0456300 456 - COMP FOR SERV TO OTHER 0456300 456 - COMP FOR SERV TO OTHER Increase (Decrease) 0 62 537 (62,537) 0 51427 (51,427) 0 40054 (40,054) 0 45 524 (45,524) 0 38 891 (36,891) Test Year Prior Year 0456610 456 -OTHER ELECTRIC REVENUES 0456610 456 -OTHER ELECTRIC REVENUES Increase (Decrease) 31,015 (20 181) 51,196 547,217 17796 529,421 40,643 20777 19,666 (13,235) 246 (13,461) 55,325 45661 9,665 Test Year Prior Year 0456630 456 - CIAC GROSS-UP 0456630 456 - CIAC GROSS-UP Increase (Decrease) 69,317 381 922 (312,605) 741,115 126 406 614,709 236,858 343 539 (106,681) 260,137 270 217 (10,060) 674,554 108 760 565,794 Test Year Prior Year 0456949 456- OTHER REVENUE AFFILIATE 0456949 456- OTHER REVENUE AFFILIATE Increase (Decrease) Test Year Prior Year 456 - UNBILLED REVENUES -NC 456 - UNBILLED REVENUES -NC Increase (Decrease) Total Other Electric Revenue Total Other Electric Revenue Increase (Decrease) 416 0 416 August 86 0 66 September October November December Total For 12 Months 4,082 19 4,063 37 444 (407) 578 3933 (3,355) 2 588 (2,566) 1295 (1,295) 9,289 9183 106 (35,415) (23) (35,392) (39,165) (13) (39,152) (36,037) 10 (36,047) (28,582) (6) (28,576) (25,774) (14) (25,760) 141,297 (10 963) 152,260 (196,040) (266 096) 70,056 0 79655 (79,655) 0 74 566 (74,566) 0 23 854 (23,654) 28,212 (22 580) 50,792 991,182 13103 976,079 (852,187) (36 915) (615,271) 30,252 1180 29,072 108,571 130180 (21,610) 42,782 (8649) 51,431 103,695 153 633 (49,938) 1,113,472 294 250 819,222 947,262 265 388 681,874 88,288 245 767 (157,479) 1,699,867 633 956 1,065,911 283,346 197 365 65,981 316,098 136 874 179,224 450,176 844 425 (394,249) 139,530 (102 041) 241,571 5,906,547 3 452 578 2,453,969 0 416 508 (416,506) 484,441 2 488 530 (2,004,069) 421,513 1 638 948 (1,217,435) 287,872 1 632120 (1,344,246) 121,010 937 286 (616,276) 196,063 878 747 (682,665) 209,783 1204481 (994,698) 279,759 984 490 (704,731) 487,315 1 598 808 (1,111,493) 204,803 2 825 421 (2,620,619) 0 2 022 249 (2,022,249) 0 2123 827 (2, 123,827) 0 1526771 (1,526,771) 2,692,558 19 861 678 (17,169,120) 11,717,697 15 231 534 (3,513,836) 12,146,248 14 919 607 (2, 773,359) 9,958,998 13 947 715 (3,968,716) 11,682,824 10 925 345 757,478 8,625,522 11615952 (2,990,429) 9,904,965 12 837 717 (2,932,752) 12,618,555 11764370 654,165 13,284,274 12 780 041 504,233 13,560,875 14 194 970 (634,096) 8,920,643 11426473 (2,505,631) 9,776,353 12 679 564 (2,903,211) 8,266,459 7 709 084 557,375 130,463,413 150 032 373 (19,568,960) DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For the test year ended December 31, 2016 12. Item No.12 a. Provide a schedule showing a comparison of the balance in the total company electric operating expense accounts for each month's activity for the test year to the same month of the preceding year for each account and subaccount included in the applicant's chart of accounts. See Format 12a. b. Provide a schedule in comparative form showing the total company operating expense account balances for the test year and each of the five years preceding the test year for each account included in the applicant's annual report (FERC Form 1., pages 320-326). If the test year is a non-calendar year, monthly data for the preceding year should match each month of the test year for comparison purposes. Show the percentage of increase of each year over the prior year. c. Provide a schedule of total company salaries and wages for the test year and each of the preceding five calendar years. Also provide the total number of electric employees by month for the test year. See Format 12c. For 12a please see attached "DEP Rate Case El 12a Operating Expense Comparison" For 12b please see attached "DEP Rate Case El 12b Operating Expense Balances" For 12c please see attached "DEP Rate Case El 12c Salaries and Wages" DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Fann E-1 Data Request For The Test Year Ended December 31, 2016 And The Twelve Months Ended December 31, 2015 Item No.12A COMPARISON OF TEST YEAR ACCOUNT BALANCES \l\llTH THOSE OF PRECEDING YEAR ELECTRIC OPERATING EXPENSE ACCOUNTS Total For 12 Time Period Test Year Prior Year 0500000 0500000 Test Year Prior Year 0500100 0500100 Account Number & Descrigtion Suprvsn and Engrg - Steam Oper Suprvsn and Engrg - Steam Oper Increase (Decrease) January 991,084 826 794 164,290 Fossil Oper Superv&Engineer-Re Fossil Oper Superv&Engineer-Re Increase (Decrease) February 837,478 1 045 477 (207,999) March 904,779 987 573 (82,794) 8Wi! 768,575 1116 238 (347,663) !!!!l!ll 872,545 781 454 91,091 129 589 (460) 2 051 (2,051) June 621,561 1120648 (499,086) 727,927 997 279 (269,352) August 595,128 825 026 (229,898) Segtember 699,743 889141 (189,397) 762 (762) 597 (597) 556 (556) 356 (356) dY.!l! October 1,403,082 833 963 569,119 November (62,252) 851 257 (913,509) December ~ 457,756 8,817,407 868 598 11143446 (410,841) (2,326,040) 4,612 882 4,612 882 887 138 749 6,510 5 049 1,461 Test Year Prior Year 0501016 0501016 llC Joint Dsp - Fuel Synergies llC Joint Dsp - Fuel Synergies Increase (Decrease) (526,118) 880 282 (1,406,399) (364,761) 848 381 (1,213,142) 163,962 190 938 (26,976) (107,563) {1 249 452) 1,141,889 (69,869) {168 930) 99,061 876,793 {57 817) 934,610 850,584 4 364 846,220 1,272,888 323 857 949,031 1,198,543 {1 312 582) 2,511,126 122 999 (122,999) 3704167 (3,704,167) 1 833 778 (1,833,778) Test Year Prior Year 0501110 0501110 Coal Consumed-Fossil Steam Coal Consumed-Fossil Steam Increase (Decrease) 41,612,542 52 099 896 (10,487,353) 28,783,854 57 340 853 (28,556,999) 6,848,939 33641686 (26,792,747) 13,964,397 21 003117 (7,038,720) 21,160,253 31 558 872 (10,398,619) 48,803,036 58 263 916 (9,460,879) 63,504,296 57 971 728 5,532,568 59,948,560 54 244 853 5,703,707 45,740,838 30 246 615 15,494,223 29,884,983 21 695166 8,189,817 14,094,649 18 867 378 (4,772,729) 20,340,092 13 422 494 6,917,598 394,686,440 450 356 574 (55,670,134) Test Year Prior Year 0501150 0501150 Coal & Other Fuel Handling Coal & Other Fuel Handling Increase (Decrease) 164,366 691 000 (526,634) 93,670 353 167 (259,496) 89,739 306 872 (217,134) 119,259 282 178 (162,918) 84,766 403 331 (318,565) 86,215 303 166 (216,951) 85,349 369 315 (283,966) 96,994 407 036 (310,042) 77,604 328 573 (250,969) 85,914 388 728 (302,814) 92,504 170 159 (77,655) 112,419 143 306 (30,887) 1,188,799 4 146 830 (2,958,031) Test Year Prior Year 0501160 0501160 Coal Sampling & Testing Coal Sampling & Testing Increase (Decrease) (3,597) 8,073 - (1,439) (4,102) 3,041 8,227 5,844 6,711 (9,282) (5,896) 12,880 (5,267) 1= (3,112) ~(7,995) Y04 (1,764) 25,882 ~~ (3,016) 4- 1,605 9~ (2,794) (13,671) 4- -~ 779 ~ 11,912 (7,606) (4,096) M(23,875) 764,620 1518052 (753,432) 2,087,559 948043 1,139,516 (3,318,502) 2321499 (5,640,000) (4,663) 2302934 (2,307,597) 3,410 1986018 (1,982,608) (27,834) 2439778 (2,467,612) (39,730) 288944 (328,674) (28,954) {364869) 335,915 (20,708) {40176) 19,468 27,767 {29440) 57,207 (8,563) 286324 (294,887) 827,941 375877 452,064 262,345 12032985 (11,770,640) (2.284.224) 2,284,224 1.071.980 (1,071,980) (69.993) 69,993 38,886 (1.282.237) 1,321, 122 (118,259) 118,259 118,259 (118,259) 236,519 501, 153 31.157 469,995 1,091,958 25.825 1,066,133 3, 142,814 121.555 3,021,259 49456 (49,456) 49456 49,456 506,561 1473438 (966,876) 663,682 817 850 (154,168) Test Year Prior Year 0501180 0501180 Sale Of Fly Ash-Revenues Sale Of Fly Ash-Revenues Increase (Decrease) Test Year Prior Year 0501181 0501181 Contra Fuel Exp Pond Ash - SC Contra Fuel Exp Pond Ash - SC Increase (Decrease) (76,365) 115,251 (76,365) 115,251 Contra Fuel Exp Pond Ash - WIS Contra Fuel Exp Pond Ash - WIS Increase (Decrease) (232,242) 350,501 (232,242) 350,501 10,723 31.661 (20,938) 9,275 26.404 (17,129) 198,730 12.054 186,675 14,013 (14,013) 14,013 (14,013) Test Year Prior Year 0501182 0501182 Test Year Prior Year 0501190 0501190 Sale Of Fly Ash-Expenses Sale Of Fly Ash-Expenses Increase (Decrease) Test Year Prior Year 0501200 0501200 Coal Consumed Purch Acctg Adj Coal Consumed Purch Acctg Adj Increase (Decrease) Test Year Prior Year 0501210 0501210 (125, 103) 4.322 (129,424) 953 3,294,460 5119985 (1,825,525) 122,832 55.623 67,209 38,420 25.315 13,105 289, 176 5.273 283,904 500 (500) 1 347 (1,347) 1 847 1,847 Biomass Consumption Expense Biomass Consumption Expense Increase (Decrease) 28,552 (28,552) 28,552 (28,552) 772,596 759 463 13,133 403,669 660 924 (257,255) 328,358 15.819 312,539 299,087 15.744 283,343 378,205 (127.642) 505,847 2- Test Year Prior Year 0501310 0501310 Oil Consumed-Fossil Steam Oil Consumed-Fossil Steam Increase (Decrease) Test Year Prior Year 0502010 0502010 Ammonia Expense Ammonia Expense Increase (Decrease) Test Year Prior Year 0502020 0502020 Ammonia - Qualifying Ammonia - Qualifying Increase (Decrease) 303,373 564 961 (261,588) 208,959 624 091 (415,132) 12,022 304 862 (292,840) 34,303 165 729 (131,426) 131,959 367 430 (235,471) 394,933 585 378 (190,445) 506,279 524 605 (18,326) 571,865 492 856 79,008 374,550 227 669 146,881 247,885 194 285 53,600 62,229 96 508 (34,279) 166,151 66 245 99,907 3,014,508 4 214 619 (1,200,111) Test Year Prior Year 0502030 0502030 Urea - Qualifying Urea - Qualifying Increase (Decrease) 119,165 141 672 (22,507) 90,822 147 526 (56,704) 90,049 116 702 (26,653) 40,260 61 508 (21,248) 51,678 41 764 9,914 64,078 179412 (115,334) 117,643 156 506 (38,863) 117,401 125132 (7,731) 76,899 73449 3,451 61,491 78 376 (16,885) 78,602 78 517 85 120,649 91 251 29,398 1,028,737 1 291 813 (263,076) Test Year Prior Year 0502040 0502040 COST OF LIME COST OF LIME Increase (Decrease) 771,522 1 324 320 (552,799) 662,453 1470409 (807,956) 198,393 864 067 (665,674) 274,060 630 642 (356,582) 456,390 1 204 088 (747,698) 1,147,165 1 641 741 (494,575) 1,672,265 1617271 54,993 1,779,506 1 546 092 233,415 1,440,275 877 123 563,153 991,475 577 757 413,718 474,027 527 932 (53,905) 712,964 223 311 489,652 10,580,495 12 504 753 (1,924,259) Test Year Prior Year 0502070 0502070 Gypsum - Qualifying Gypsum - Qualifying Increase (Decrease) 29,103 (235 945l 265,048 (116,797) (13145l (103,651) (118,440) 172 807 (291,247) (213,763) (5 758l (208,004) (159,904) (36 269l (123,635) (43,933) 41 726 (85,659) (3,102) 58 713 (61,815) 16,052 53 836 (37,784) (73,981) (43 935l (30,046) (101,099) (162 386l 61,287 (65,108) (40 290l (24,818) (45,138) (62 038l 16,900 1,344,892 945 239 399,654 866,631 414 320 452,310 272,315 762 975 (490,660) 430,277 597 258 (166,982) 594,400 1 401 522 (807,122) 424,130 719 779 (295,649) 409,312 450 291 (40,979) 603,287 493 823 109,464 265 (265) 7,291,750 9 496 882 (2,205, 131) 265 (265) (896,110) (272 684l (623,426) DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Fann E-1 Data Request For The Test Year Ended December 31, 2016 And The Twelve Months Ended December 31, 2015 Item No.12A COMPARISON OF TEST YEAR ACCOUNT BALANCES \l\llTH THOSE OF PRECEDING YEAR ELECTRIC OPERATING EXPENSE ACCOUNTS Total For 12 Time Period Account Number & Descrigtion Test Year Prior Year 0502080 0502080 Mag Hydroxide Qualifying Reag Mag Hydroxide Qualifying Reag Increase (Decrease) Test Year Prior Year 0502082 0502082 Re-emission Chem Exp - Reagent Re-emission Chem Exp - Reagent Increase (Decrease) January 87,743 250 571 (162,828) February 194,211 408 877 (214,667) March 97,459 237 717 (140,259) 8Wi! 34,124 133 215 (99,091) !!!!l!ll June dY.!l! 111,393 254 553 (143,160) 253,092 402 517 (149,424) 368,006 501 576 (133,570) August Segtember 440,563 606 583 (166,019) 382,514 270 734 111,781 October 226,425 172 817 53,608 November 108,999 128 682 (19,683) December 128,580 45 889 82,690 117,168 ~ 2,433,109 3413731 (980,622) 117,168 117,168 117,168 Test Year Prior Year 0502090 0502090 Calcium Carbonate Calcium Carbonate Increase (Decrease) 41,577 139 579 (98,002) 115,842 209 811 (93,970) 54,389 112 999 (58,611) 23,433 85482 (62,049) 65,969 116 071 (50,102) 139,342 160 342 (21,000) 200,877 266 889 (66,012) 248,447 297 542 (49,095) 193,867 157 731 36,136 109,949 116 871 (6,921) 55,118 85 924 (30,806) 58,118 31 231 26,887 1,306,928 1 780 472 (473,544) Test Year Prior Year 0502100 0502100 Fossil Steam Exp-Other Fossil Steam Exp-Other Increase (Decrease) 478,418 521 003 (42,585) 493,118 641 955 (148,837) 508,647 684 925 (176,278) 532,467 623 138 (90,672) 459,196 919481 (460,285) 473,357 610 923 (137,566) 513,362 799151 (285,788) 443,472 755 297 (311,825) 481,040 922 315 (441,275) 400,011 752 227 (352,216) 440,967 570 372 (129,405) 450,907 570 063 (119,156) 5,674,962 8 370 849 (2,695,887) Test Year Prior Year 0502160 0502160 Reagent Synergy Savings Reagent Synergy Savings Increase (Decrease) (11,636) 26 217 (37,853) 18,729 43 919 (25,190) (39,555) (9 861l (29,694) (33,944) (5 310l (28,634) (307,865) (5 923l (301,942) (6,647) (30 499l 23,853 7,554 225 562 (218,008) 18,415 17 698 716 (5,726) (36411l 30,685 (56133l 56,133 (44 351l 44,351 (28 500l 28,500 (360,676) 96408 (457,084) Test Year Prior Year 0502161 0502161 By-Product Synergy Savings By-Product Synergy Savings Increase (Decrease) 84,815 189 535 (104,720) 46,669 134 493 (87,824) 16,750 199 724 (182,975) (33,527) 141 734 (175,260) (14,528) 134 029 (148,557) (8,615) 308 501 (317,116) 36,445 {1 875 200) 1,911,645 75,867 34 972 40,895 8,115 18 763 (10,648) {25 885) 25,885 45 719 (45,719) {21 648) 21,648 211,991 {715 262) 927,253 Test Year Prior Year 0504000 0504000 Steam Transferred-Credit Steam Transferred-Credit Increase (Decrease) 1 909 1,909 1 234 (1,234) Test Year Prior Year 0505000 0505000 Electric Expenses-Steam Oper Electric Expenses-Steam Oper Increase (Decrease) Test Year Prior Year 0506000 0506000 Misc Fossil Power Expenses Misc Fossil Power Expenses Increase (Decrease) Test Year Prior Year 0506300 0506300 Misc Fossil Power Expenses - R Misc Fossil Power Expenses - R Increase (Decrease) Test Year Prior Year 0509030 0509030 S02 Emission Expense S02 Emission Expense Increase (Decrease) Test Year Prior Year 0509212 0509212 Annual NOx Emission Expense Annual NOx Emission Expense Increase (Decrease) Test Year Prior Year 0510000 0510000 Suprvsn and Engrng-Steam Maint Suprvsn and Engrng-Steam Maint Increase (Decrease) Test Year Prior Year 0510100 0510100 Suprvsn & Engrng-Steam Maint R Suprvsn & Engrng-Steam Maint R Increase (Decrease) Test Year Prior Year 0511000 0511000 Maint Of Structures-Steam Maint Of Structures-Steam Increase (Decrease) Test Year Prior Year 0511200 0511200 Maint Of Structures-Steam - Re Maint Of Structures-Steam - Re Increase (Decrease) Test Year Prior Year 0512100 0512100 Maint Of Boiler Plant-Other Maint Of Boiler Plant-Other Increase (Decrease) Test Year Prior Year 0512300 0512300 Maint Of Boiler Plant 0th-Rec Maint Of Boiler Plant 0th-Rec 4153 (4,153) 3478 (3,478) (213) 96103 (96,317) 83 87 517 (87,434) 1,043 82 994 (81,951) 4,179 90 768 (86,589) 2,432 131 314 (128,882) 4,773 90416 (85,643) 2,876 114 279 (111,403) 200 33 306 (33,106) 970 {1 616) 2,585 14,456 16117 (1,660) 1,524 2 004 (480) 52,538 1 315 51,223 84,862 744 519 (659,657) (1,636,070) 596 017 (2,232,088) 124,183 1 689 535 (1,565,353) 2,593,862 2962159 (368,297) (1,115,851) 2 550 899 (3,666,750) (28,238) 1 396 249 (1,424,487) 1,248,136 525 364 722,773 (370,042) (834 984l 464,942 1,111,915 1 552 691 (440,776) 1,633,249 4 140 636 (2,507 ,386) 96,110 2175 065 (2,078,955) 1,298,172 2577109 (1,278,937) 2,190,212 1 806 203 384,009 7,145,638 21136 943 (13,991,305) 3 (3) 14 511 (14,511) 4,960 16 840 (11,880) 4,546 5 861 (1,315) 843 4 083 (3,240) 1,161 7 011 (5,850) 2,599 14152 (11,553) 9,189 12 988 (3,798) 14,791 12 230 2,561 3 (3) 14,149 5450 8,699 5,958 4 940 1,018 3,861 3156 705 1,907 1 447 460 242,904 501 699 (258,795) 242,904 501 699 (501,699) 814,365 1 041 558 (227,193) 576,914 886 044 (309,130) 242,904 508,005 892 949 (384,944) 726,209 942 491 (216,282) 538,285 913 674 (375,389) 527,209 890 242 (363,033) 479,522 1 047 938 (568,416) 481,211 951 706 (470,495) 520,175 1 348 913 (828,738) 610,621 1 448 918 (838,297) 17,802 2 359 15,443 9,083 7,165 12,418 9,083 7,165 12,418 10,383 1 285 9,098 10,789 5 764 5,025 13,328 6 804 6,524 13,451 10 566 2,886 18,834 3 216 15,618 21,575 3198 18,377 2,408,608 668 029 1,740,579 700,546 3 093 749 (2,393,203) 1,024,153 (4 279 770l 5,303,923 747,865 (1 367 974l 2,115,839 418,358 222 068 196,290 722,876 2 757 963 (2,035,087) (567,164) 5 222174 (5,789,358) (252,420) 3 333 009 (3,585,429) 51,780 3 331 542 (3,279,762) 1,770,393 (2 496 140l 4,266,533 456,320 1 430 061 (973,740) 25,146 3 793 21,353 460,238 679 450 (219,212) 417,013 566 969 (149,956) 28,223 5 600 22,622 342 3,486,536 2 203 553 1,282,983 3,888,601 3 824 643 63,958 4,862,129 4572412 289,717 2,268,161 4 998 091 (2,729,930) 2,986,512 3 659 085 (672,573) 2,882,320 1 236 933 1,645,387 2,612,412 2 453 749 158,663 308 (4) 5,100,153 3 955 218 1,144,935 4,152,324 4 647 055 (494,731) 2,867,466 5 046 094 (2, 178,628) 6,655,849 12 361 462 (5,705,614) 188,199 42 587 145,612 1,928,149 5 629 467 (3,701,318) 9,413,362 16 793 567 (7 ,380,205) 29 (29) 342 29 313 4,483,973 6 264 877 (1,780,903) 43,515,606 44780198 (1,264,592) 342 3,925,018 1 918 489 2,006,530 63,963 102 668 (38,704) 304 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Fann E-1 Data Request For The Test Year Ended December 31, 2016 And The Twelve Months Ended December 31, 2015 Item No.12A COMPARISON OF TEST YEAR ACCOUNT BALANCES \l\llTH THOSE OF PRECEDING YEAR ELECTRIC OPERATING EXPENSE ACCOUNTS Total For 12 Time Period Account Number & Description Increase (Decrease) Janu.ru::'ll Februaru 0513100 0513100 Maint Of Electric Plant-Other Maint Of Electric Plant-Other Increase (Decrease) 823,574 (110.149) 933,724 622, 191 353.716 268,474 512,498 1.523.979 (1,011,481) Test Year Prior Year 0514000 0514000 Maintenance - Misc Steam Plant Maintenance - Misc Steam Plant Increase (Decrease) 280,255 562.873 (282,618) 620,990 398.805 222,185 691,333 478.120 213,213 Test Year Prior Year 0514300 0514300 Maintenance - Misc Steam Plant Maintenance - Misc Steam Plant Increase (Decrease) 961 1,749 1,541 961 1,749 1,541 3,260,350 2.963.981 296,369 3,290,904 2.771.340 519,564 0517000 0517000 Supervsn and Engnring-Nuc Oper Supervsn and Engnring-Nuc Oper Increase (Decrease) Test Year Prior Year 0517001 0517001 Sup & Engineer- NC Sup & Engineer- NC Increase (Decrease) Test Year Prior Year 0518100 0518100 Burn up Of Owned Fuel Burn up Of Owned Fuel Increase (Decrease) Test Year Prior Year 0518500 0518500 Nuclear Fuel Synergy Savings Nuclear Fuel Synergy Savings Increase (Decrease) Test Year Prior Year 0518510 0518510 Oil In Aux Stm Gen Fac-Nuc Opr Oil In Aux Stm Gen Fac-Nuc Opr Increase (Decrease) Test Year Prior Year 0518530 0518530 Diesel Unit Oil Cons-Nuc Oper Diesel Unit Oil Cons-Nuc Oper Increase (Decrease) Test Year Prior Year 0518610 0518610 Canister Expense-Oconee Robins Canister Expense-Oconee Robins Increase (Decrease) Test Year Prior Year 0518611 0518611 Test Year Prior Year 0518620 0518620 ...!!J.bl June August (308) Test Year Prior Year Test Year Prior Year MIDt: ADiil March 17,325,851 15.079.628 2,246,223 14,855,532 12.471.095 2,384,437 Sfilltember Po 47,396 Po December Months (304) 1,502,385 482.777 1,019,608 530,269 624.147 (93,878) 419,204 1.410.061 (990,857) 265,076 575.713 (310,637) 1, 124,245 1.267.665 (143,420) 705, 121 5.084.142 (4,379,021) 1,027,289 2.491.149 (1,463,861) 949,828 1.968.400 (1,018,572) 9,787, 139 16.556.954 (6,769,815) (51,484) 436.576 (488,059) 561,541 716.333 (154,792) 445,401 1.379.875 (934,474) 821,240 516.487 304,753 419,702 1.210.758 (791,056) 523,819 987.232 (463,412) 455,804 1.617.891 (1,162,087) 421,689 1.357.569 (935,880) 952,184 1.602.756 (650,572) 6,142,474 11.265.275 (5, 122,800) 2,507 141 2,366 1,149 3.086 (1,937) 452 8.037 (7,585) 437 2.114 (1,677) 891 4.027 (3,136) 277 2.311 (2,034) 56 1.892 (1,836) 239 1.817 (1,578) 118 1.757 (1,639) 10,378 25.183 (14,806) 3,942,195 3.302.589 639,606 3,925,951 3.171.510 754,441 3,620,011 3.388.013 231,998 3,795,846 3.119.618 676,228 3,891,816 2.993.255 898,561 4,132,990 3.415.816 717,174 4,270,684 3.651.075 619,608 3,775,643 4.162.334 (386,691) 3,247,036 3.345.558 (98,523) 3,631,649 3.669.738 (38,089) 44,785,075 39.954.828 4,830,246 2.880 (2,880) (466) 466 13,385,668 11.247.689 2,137,979 16,851,764 9.752.181 7,099,583 2.414 (2,414) 17,549,870 10.749.668 6,800,201 17,018,469 11.707.776 5,310,694 17,597,643 15.223.978 2,373,665 16,749,397 17.635.986 (886,589) (20.028) 20,028 (3,853) 173 (4,026) 36 90.368 (90,332) (34) 34 12,717 59.236 (46,518) 2,321 4.574 (2,253) 1,853 1,853 10.466 (10,466) Po Po (3,086) Po (3,086) 16,360,729 17.000.285 (639,556) 13,033,578 17.324.461 (4,290,883) 15,273,933 15.058.832 215,101 20,412,766 17.697.268 2,715,498 196,415,200 170.948.847 25,466,353 (3,817) 70.479 (74,297) (1,056) 1,056 47,396 November 1,305,459 885.354 420,105 1,056 16,125 1.973 14,152 October 4 (1,056) 27,942 47,160 51.462 (4,302) 162,427 26.555 135,872 15,899 15.007 892 145,016 27,942 22,771 69.749 (46,977) Po (3,086) Po (3,086) Po (3,086) Po (3,086) o= o= o= (3,086) 39,014 216,832 (136,827) (3,086) 39,014 (3,086) 39,014 145,016 501,628 239.022 262,606 ~~ 81,537 (84,623) 81,537 (84,623) 81,537 (84,623) Canister Expense-Mcguire Bruns Canister Expense-Mcguire Bruns Increase (Decrease) 58,817 58,817 58,817 125,224 125,224 125,224 125,224 125,224 125,224 58,817 58,817 58,817 125,224 125,224 125,224 125,224 125,224 125,224 125,224 368.594 (243,370) 125,224 58.817 66,407 125,224 58.817 66,407 1,303,467 486.228 817,239 Canister Design Expense Canister Design Expense Increase (Decrease) 30,138 39,597 24,256 44,490 20,006 30,029 5,258 30,138 39,597 24,256 44,490 20,006 30,029 5,258 12,475 2,723 9,752 20,143 74,009 (53,865) 4,435 92.480 (88,044) 8,665 (10,226) 18,891 11,247 4,578 6,669 250,740 163,564 87,175 78,338 43.686 34,652 47,670 95.865 (48,195) 69,052 95.822 (26,770) 50,872 117.667 (66,795) 43,406 92.471 (49,065) 81,378 111.932 (30,554) 60,648 94.848 (34,200) 102,784 65.603 37,181 23,800 125.658 (101,858) 53,527 124.191 (70,665) (108,562) 149.923 (258,484) 261,630 66.842 194,788 764,543 1.184.508 (419,965) Test Year Prior Year 0518700 0518700 24 Month Fuel Cycle 24 Month Fuel Cycle Increase (Decrease) Test Year Prior Year 0519000 0519000 Coolants And Water-Nuc Oper Coolants And Water-Nuc Oper Increase (Decrease) 1,434,795 1.075.691 359,104 1,740,268 1.688.139 52,129 1,616,752 1.961.159 (344,407) 1,952,661 1.673.135 279,526 1,511,703 1.946.285 (434,582) 1,770,711 1.896.061 (125,351) 1,599,213 1.323.236 275,977 1,769,556 1.803.717 (34,161) 1,999,033 1.538.747 460,286 1,510,068 1.393.048 117,019 1,601,253 1.700.008 (98,755) 1,893,533 2.189.185 (295,652) 20,399,547 20.188.412 211,134 Test Year Prior Year 0520000 0520000 Steam Expenses-Nuc Oper Steam Expenses-Nuc Oper Increase (Decrease) 3,308,530 2.861.699 446,831 3,869,269 4.510.796 (641,527) 4,927,314 5.808.946 (881,633) 4,566,216 5.006.412 (440,195) 3,368,887 4.237.990 (869,103) 5,062,883 3.490.640 1,572,243 3,230,060 3.595.314 (365,254) 3,557,593 3.683.896 (126,303) 4,807,346 3.990.455 816,891 4,651,043 4.709.619 (58,576) 4,971,474 3.807.099 1,164,375 4,051,690 4.018.199 33,490 50,372,305 49.721.067 651,238 Test Year Prior Year 0523000 0523000 Electric Expenses Electric Expenses Increase (Decrease) 467,030 514,881 (47,851) 476,890 496,309 (19,418) 491,655 (1,066,549) 1,558,204 613,960 502,673 111,286 486,912 545,507 (58,595) 499,994 487,546 12,448 474,349 436,204 38,144 477,275 521,369 (44,094) 603,938 549, 199 54,739 544,932 541,663 3,269 471,591 485,817 (14,226) 525,182 489,386 35,796 6,133,709 4,504,006 1,629,703 Test Year Prior Year 0524000 0524000 Misc Expenses-Nuc Oper Misc Expenses-Nuc Oper Increase (Decrease) 16,011,742 16.432.581 (420,839) 15,234,085 12.307.003 2,927,082 14,633,146 13.291.058 1,342,088 10,956,498 11.624.287 (667,789) 11,432,966 13.991.446 (2,558,481) 14,519,023 13.320.994 1,198,029 14,760,846 15.379.780 (618,934) 13,540,221 18.792.726 (5,252,506) 14,167,901 15.224.114 (1,056,213) 13,479,022 16.198.599 (2,719,577) 14,561,499 16.008.856 (1,447,356) 17,676,683 17.098.220 578,463 170,973,633 179.669.665 (8,696,032) Test Year 0524001 Misc Exp Nuc - NC 49 49 49 49 49 49 49 66 49 49 49 49 610 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Fann E-1 Data Request For The Test Year Ended December 31, 2016 And The Twelve Months Ended December 31, 2015 Item No.12A COMPARISON OF TEST YEAR ACCOUNT BALANCES \l\llTH THOSE OF PRECEDING YEAR ELECTRIC OPERATING EXPENSE ACCOUNTS Total For 12 Time Period Prior Year 0524001 Account Number & Description Misc Exp Nuc - NC Increase (Decrease) January 49 February 1.237 (1,188) March 5.088 (5,038) !!!!l!ll 8Wi! 190 (141) June 49 189 (140) August dY.!l! 49 49 17 September 49 Test Year Prior Year 0524002 0524002 Misc Exp Nuc - SC Misc Exp Nuc - SC Increase (Decrease) Test Year Prior Year 0528000 0528000 Maint Suprvsn and Enginrng-Nuc Maint Suprvsn and Enginrng-Nuc Increase (Decrease) 6,465,700 3.853.881 2,611,819 6,222,630 5.725.285 497,346 8,810,652 7.724.668 1,085,983 5,853,991 7.766.038 (1,912,047) 4,345,629 7.233.424 (2,887,795) 7,430,302 7.325.219 105,083 5,234,560 5.282.894 (48,334) 5,601,084 7.386.041 (1,784,957) 5,465,632 7.022.175 (1,556,543) Test Year Prior Year 0529000 0529000 Maintenance Of Structures-Nuc Maintenance Of Structures-Nuc Increase (Decrease) 1,916,762 1 969 752 (52,990) 1,605,095 2 743 756 (1,138,662) 1,932,568 2 047 671 (115,103) 874,519 4 429 896 (3,555,377) 1,527,710 2 789 578 (1,261,868) 2,075,613 (1 343 755) 3,419,368 2,230,700 2 019 358 211,342 1,704,008 2 054 442 (350,435) Test Year Prior Year 0530000 0530000 Maint Of Reactor Pit Equip-Nuc Maint Of Reactor Pit Equip-Nuc Increase (Decrease) 6,099,312 8.216.819 (2, 117,507) 6,817,980 9.643.118 (2,825, 138) 8,017,249 10.776.504 (2,759,255) 6,925,009 14.591.235 (7 ,666,225) 3,526,077 10.610.592 (7,084,515) 6,286,623 10.016.137 (3,729,514) 2,645,155 5.161.118 (2,515,963) 4,563,577 3.924.874 638,703 Test Year Prior Year 0530002 0530002 Main Reactor Pit Eq Nuc - SC Main Reactor Pit Eq Nuc - SC Increase (Decrease) 80 1.905 (1,825) 80 430 (350) 80 80 80 80 80 80 80 80 80 80 October 687 (638) November 49 December 49 Months 7.639 (7,029) 22.553 (22,553) 2.255 (2,255) 24.808 (24,808) 6,866,975 6.852.611 14,364 5,614,207 5.989.190 (374,983) 4,258,353 7.228.263 (2,969,910) 72,169,715 79.389.689 (7,219,974) 1,827,149 1 385 143 442,005 4,009,013 1 789 632 2,219,381 1,986,628 1 678 442 308,185 4,025,911 1 339 666 2,686,245 25,715,675 22 903 584 2,812,091 5,823,416 6.668.535 (845,119) 7,454,917 6.018.423 1,436,494 4,532,117 5.403.252 (871,134) 4,732,732 5.824.874 (1,092, 142) 67,424,165 96.855.480 (29,431,315) 80 189 (110) 80 195 (116) 80 80 80 80 80 80 956 2.958 (2,002) Test Year Prior Year 0531100 0531100 Maint Electric Plt-Other-Nuc Maint Electric Plt-Other-Nuc Increase (Decrease) 2,645,028 3.784.344 (1,139,315) 3,579,443 5.031.959 (1,452,517) 5,788,413 5.234.295 554,118 2,926,005 5.540.796 (2,614,791) 3,003,348 4.186.818 (1,183,470) 6,266,911 4.445.262 1,821,649 3,675,774 2.175.917 1,499,857 3,515,229 1.894.565 1,620,664 4,670,373 3.240.846 1,429,527 4,627,990 2.907.697 1,720,293 3,410,557 5.449.898 (2,039,341) 4,700,913 2.682.448 2,018,465 48,809,983 46.574.844 2,235,139 Test Year Prior Year 0532100 0532100 Maint Misc Nuclear Pit-Other Maint Misc Nuclear Pit-Other Increase (Decrease) 3,954,346 6.981.488 (3,027' 143) 4,921,565 8.279.593 (3,358,028) 6,965,672 6.213.835 751,837 4,266,890 5.140.510 (873,620) 5,228,148 7.462.015 (2,233,867) 4,204,189 5.592.266 (1,388,077) 4,951,300 4.570.091 381,209 4,172,942 6.047.672 (1,874,730) 4,992,052 4.184.089 807,963 5,950,888 5.465.935 484,952 4,889,809 5.082.748 (192,940) 6,713,403 4.953.704 1,759,698 61,211,202 69.973.947 (8,762,745) Test Year Prior Year 0532101 0532101 Main Misc Nuc Pit - NC Main Misc Nuc Pit - NC Increase (Decrease) Test Year Prior Year 0532102 0532102 Main Misc Nuc Pit - SC Main Misc Nuc Pit - SC Increase (Decrease) Test Year Prior Year 0535000 0535000 Supervsn and Engrng-Hydro Oper Supervsn and Engrng-Hydro Oper Increase (Decrease) Test Year Prior Year 0536000 0536000 Test Year Prior Year 0537100 0537100 80 56 (56) 80 1.318 (1,318) 366 (366) 2.293 (2,293) 609 (609) 104,367 86.887 17,480 71,250 70.015 1,235 134,211 94.523 39,688 133,295 112.310 20,986 500,817 77.468 423,349 87,934 70.992 16,942 149,339 491.641 (342,302) Water for power Water for power Increase (Decrease) 5,208 5.208 5,208 5.208 5,208 5.208 5,208 5.208 5,208 5.208 5,208 5.208 Hydraulic Expenses Hydraulic Expenses Increase (Decrease) 6 4.115 (4,109) 6 3.593 (3,588) 40 3.850 (3,810) 4.232 (4,232) 7,326 10.440 (3,114) 130,006 46.591 83,415 72.802 (72,802) 5,208 5.208 108,703 74.372 34,332 79,028 83.936 (4,908) 89,787 78.474 11,313 5,208 5.208 5,208 5.208 5,208 5.208 17 6 11 11 84,705 214.289 (129,584) 5,208 5.208 11 268,742 204.593 64,148 1,812,177 1.659.500 152,677 5,208 5.208 62,500 62.500 11 11 (11) 80 56 24 11 137,421 145.639 (8,218) Test Year Prior Year 0537400 0537400 Recreation Expenses-Hydro Recreation Expenses-Hydro Increase (Decrease) (6,594) (36, 149) 29,555 2,099 (10, 189) 12,289 3,671 2.465 1,206 10,263 3,783 6,480 (20,375) (22,380) 2,005 (325,421) (324.439) (983) 1,642 (25,918) 27,559 3,829 (32, 164) 35,992 (335) (7,770) 7,435 (4,870) 10 (4,880) (21,602) (1,865) (19,737) (3,452) (1,897) (1,555) (361, 146) (456,512) 95,367 Test Year Prior Year 0538100 0538100 Electric Expenses-Other-Hydro Electric Expenses-Other-Hydro Increase (Decrease) 7,513 58.845 (51,333) 6,812 40.613 (33,801) 6,397 58.885 (52,487) 6,607 64.996 (58,388) 6,353 67.554 (61,201) 6,181 58.708 (52,527) 9,273 110.799 (101,525) 8,087 31.121 (23,034) 9,573 6.491 3,082 8,002 25.829 (17,827) 7,558 10.386 (2,829) 8,737 5.951 2,786 91,095 540.179 (449,084) Test Year Prior Year 0539000 0539000 Misc Hydraulic Expenses Misc Hydraulic Expenses Increase (Decrease) 33,630 30.997 2,633 34,707 47.868 (13,161) 44,961 82.364 (37,403) 32,201 49.746 (17,545) 33,846 71.828 (37,982) 32,762 69.595 (36,833) 39,405 77.593 (38,188) 443,701 504.498 (60,797) 36,372 37.358 (985) 10,915 65.709 (54,794) 23,524 54.899 (31,376) 789,899 1.156.120 (366,221) Test Year Prior Year 0540000 0540000 Rents-Hydro Oper Rents-Hydro Oper Increase (Decrease) Test Year Prior Year 0541000 0541000 Suprvsn and Engrng-Hydro Maint Suprvsn and Engrng-Hydro Maint Increase (Decrease) 23,875 63.666 (39,791) 667 (667) 23,642 31.990 (8,349) 19,648 28.198 (8,549) 16,318 28.693 (12,375) 14,700 25.539 (10,839) 17,620 26.608 (8,988) 16,158 30.506 (14,348) 17,850 37.820 (19,970) 20,416 27.634 (7,218) 18,737 31.963 (13,226) 18,864 30.336 (11,472) 16,642 26.322 (9,680) 667 (667) 17,413 24.606 (7,193) 218,008 350.216 (132,208) DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Fann E-1 Data Request For The Test Year Ended December 31, 2016 And The Twelve Months Ended December 31, 2015 Item No.12A COMPARISON OF TEST YEAR ACCOUNT BALANCES \l\llTH THOSE OF PRECEDING YEAR ELECTRIC OPERATING EXPENSE ACCOUNTS Total For 12 Time Period Test Year Prior Year 0542000 0542000 Account Number & Description Maint Of Structures-Hydro Maint Of Structures-Hydro Increase (Decrease) Test Year Prior Year 0543000 0543000 Maint-Reservoir,Dam & Waterway Maint-Reservoir,Dam & Waterway Increase (Decrease) (2,858) (22.934) 20,076 82,824 23.833 58,991 Test Year Prior Year 0544000 0544000 Maint Of Electric Plant-Hydro Maint Of Electric Plant-Hydro Increase (Decrease) 17,580 30.452 (12,872) Test Year Prior Year 0545100 0545100 Maint-Misc Hydraulic Plant Maint-Misc Hydraulic Plant Increase (Decrease) Test Year Prior Year 0545400 0545400 Recreation Facilities-Hydro Recreation Facilities-Hydro Increase (Decrease) Test Year Prior Year 0546000 0546000 Suprvsn and Enginring-CT Oper Suprvsn and Enginring-CT Oper Increase (Decrease) Test Year Prior Year 0547000 0547000 Fuel Expense-CT Fuel Expense-CT Increase (Decrease) Test Year Prior Year 0547123 0547123 Gas Capacity- lntercompany Gas Capacity- lntercompany Increase (Decrease) Test Year Prior Year 0547127 0547127 Gas Desk Savings Gas Desk Savings Increase (Decrease) Test Year Prior Year 0547150 0547150 Natural Gas Handling-CT Natural Gas Handling-CT Increase (Decrease) Test Year Prior Year 0547200 0547200 Oil Oil Increase (Decrease) Test Year Prior Year 0547300 0547300 Test Year Prior Year January 17,288 17.750 (461) (80,691) 17.264 (97,955) June 29,363 33.934 (4,571) 62,325 19.674 42,651 97, 152 62.653 34,498 52,524 134.088 (81,564) 18,721 30.089 (11,368) 24,718 55.140 (30,423) 50,877 61.331 (10,455) 118,649 25.051 93,599 169,017 (159.593) 328,610 195,501 119.171 76,330 153,318 134.437 18,881 211 220 19 197 (177) 4,328 387 3,941 1,389 3.956 (2,567) 1,353 1.472 (119) 1,635 1.498 137 387,734 359.564 28,169 March 24,777 16.063 8,714 !!!!l!ll 102,019 22.315 79,704 (9) February 9,614 32.004 (22,391) 8Wi! Months 22,013 14.148 7,865 August 43,296 6.760 36,537 September 45,123 2.694 42,429 October 33,688 45.459 (11,771) November 17,217 13.489 3,728 December 67,719 11.088 56,631 66,791 48.109 18,683 36, 110 454.569 (418,459) 140,557 71.336 69,221 271,042 93.952 177,090 140,978 (262.156) 403,133 172,931 264.124 (91,193) 319,431 303.428 16,003 1,439,806 1.190.676 249,129 47,415 27.362 20,054 38,030 85.274 (47,244) 48,567 59.147 (10,580) 22,369 25.716 (3,346) 57,916 27.201 30,715 18,309 18.533 (224) 47,721 15.848 31,873 64,599 61.172 3,427 456,821 497.265 (40,444) 133,821 64.261 69,560 137,462 135.011 2,452 271,701 45.072 226,629 138,345 105.695 32,650 197,432 190.469 6,963 2,217,810 1.248.246 969,565 dY.!l! 233,324 207.698 25,626 331,428 232.968 98,460 334,616 199.649 134,967 134,623 181.325 (46,702) 1,353 4.401 (3,048) 1,372 1.495 (123) 1,354 1.478 (124) 1,359 1.477 (118) 1,356 1.444 (87) 1,364 2.750 (1,386) 17,093 20.775 (3,681) 395,461 536.690 (141,229) 367,287 552.863 (185,577) 325,828 508.780 (182,952) 334,737 400.918 (66,181) 286,085 392.077 (105,992) 4,459,099 5.993.988 (1,534,889) 51,890,327 61.653.583 (9,763,257) 43,556,597 51.250.124 (7 ,693,527) 53,529,656 58.169.369 (4,639,713) 62,529,687 56.667.689 5,861,998 676,295,933 831.628.363 (155,332,431) 372,980 509.034 (136,055) 389,101 502.967 (113,866) 435,382 498.277 (62,895) 365,224 597.622 (232,398) 409,612 551.572 (141,960) 389,670 583.624 (193,954) 64,603,188 86.117.123 (21,513,935) 61,089,119 129.915.343 (68,826,224) 55,799,198 74.452.942 (18,653,743) 48,836,295 56.147.812 (7,311,518) 53,270,597 61.385.368 (8,114,771) 51,966,245 65.085.915 (13, 119,670) 64,670,880 66.440.412 (1,769,533) (1,803,307) (2507138) 703,831 (1,654,369) (2245988) 591,619 (1,868,294) (2159089) 290,796 (52,667) (73805) 21,138 (68,405) (16329) (52,077) (71,811) (15919) (55,891) (76, 189) (11250) (64,939) (69,251) (9463) (59,787) (69,334) (10773) (58,561) (11001) 11,001 (1682240) 1,682,240 (1823665) 1,823,665 (5,733,627) (10566662) 4,833,035 (14,127) (15,649) 1,523 (14,309) (14,569) 259 (15,202) (13,854) (1,348) (15,135) (13,691) (1,444) (15,111) (13,583) (1,528) (14,147) (13,058) (1,089) (13,722) (13,849) 127 (13,906) (14,146) 240 (13,911) (14,696) 785 (14,696) 14,696 (13,873) 13,873 (14,840) 14,840 (129,570) (170,504) 40,934 42,521 22.917 19,604 43,268 40.635 2,634 40,653 61.711 (21,059) 51,313 36.317 14,995 40,832 41.852 (1,020) 46,537 36.874 9,663 48,080 46.974 1,106 49,844 34.353 15,491 57,592 37.028 20,564 51,268 39.253 12,015 53,901 40.234 13,667 50,495 35.411 15,084 576,304 473.560 102,744 2,107,014 43.360 2,063,653 8,953,836 45.500.140 (36,546,305) 64,554,144 64.342.681 211,463 3,170,720 9.567.267 (6,396,547) 2,171,227 32.579.351 (30,408, 124) 261,565 198.863 62,702 205,349 101.636 103,713 64,880 450.083 (385,203) 336,309 119.834 216,475 53,975 463.429 (409,454) 84,960 30.495 54,465 14,075 81.231 (67,156) 306,624 164.648 141,975 177,138 1.699.942 (1,522,803) Fuel Handling and Testing-CT Fuel Handling and Testing-CT Increase (Decrease) 6,767 13.071 (6,303) 1,065 24.296 (23,232) 1,907 21.848 (19,941) 3,718 34.237 (30,519) 366 14.460 (14,093) 466 9.392 (8,926) 464 (42.027) 42,491 338 4.720 (4,381) 7,170 2.302 4,868 555 17.788 (17,233) 4,320 2.688 1,633 208 582 (374) 27,344 103.354 (76,010) 0548020 0548020 Ammonia - Qualifying Ammonia - Qualifying Increase (Decrease) 29,744 36.556 (6,811) 28,081 13.102 14,979 13,489 12.007 1,482 3,367 11.727 (8,361) 33,530 56.393 (22,863) 30,371 27.746 2,626 19,927 27.483 (7,555) 19,205 11.900 7,305 15,641 27.795 (12,153) 3,021 15.609 (12,588) 17,524 27.927 (10,403) 17,614 22.595 (4,981) 231,516 290.839 (59,323) Test Year Prior Year 0548100 0548100 Generation Expenses-Other CT Generation Expenses-Other CT Increase (Decrease) 115,075 44.844 70,231 61,003 48.007 12,996 59,108 73.725 (14,617) 62,846 58.145 4,701 74,726 71.453 3,272 62,080 54.006 8,075 81,294 61.430 19,865 91,106 56.310 34,796 78,539 55.099 23,440 60,587 65.729 (5,143) 65,386 65.190 196 60,285 37.691 22,594 872,035 691.629 180,406 Test Year Prior Year 0548200 0548200 Prime Movers - Generators- CT Prime Movers - Generators- CT Increase (Decrease) 170,150 258.849 (88,699) 172,096 239.674 (67,578) 147,903 290.612 (142,709) 177,937 258.869 (80,932) 163,322 295.038 (131,716) Test Year Prior Year 0549000 0549000 Misc-Power Generation Expenses Misc-Power Generation Expenses Increase (Decrease) 1,043,129 778.465 264,664 1,462,045 663.633 798,412 959,178 827.614 131,565 658,911 836.722 (177,811) 801,125 714.556 86,570 Test Year Prior Year 0551000 0551000 Suprvsn and Enginring-CT Maint Suprvsn and Enginring-CT Maint Increase (Decrease) 330,137 374.943 (44,806) 321,510 388.106 (66,596) 319,360 408.453 (89,093) 322,556 417.852 (95,296) Test Year Prior Year 0552000 0552000 Maintenance Of Structures-CT Maintenance Of Structures-CT Increase (Decrease) 302,454 54.937 247,517 169,123 205.444 (36,321) 352,442 180.579 171,863 246,029 419.489 (173,460) 161,191 227.277 (66,086) 150,664 308.332 (157,668) 176,619 274.551 (97,932) 166,248 259.710 (93,462) 152,620 338.393 (185,774) 147,150 241.117 (93,967) 208,622 184.657 23,965 1,994,521 3.177.080 (1,182,559) 1,122,789 704.841 417,948 1,327,465 906.394 421,071 834,564 1.720.597 (886,033) 1,012,258 880.823 131,435 1,180,550 2.722.562 (1,542,012) 926,737 2.977.171 (2,050,434) 1,821,808 1.298.421 523,387 13,150,559 15.031.798 (1,881,239) 383,883 401.771 (17,889) 366,132 396.305 (30,173) 353,820 455.504 (101,683) 354,547 405.256 (50,709) 377,233 374.520 2,713 369,630 403.143 (33,513) 434,291 350.706 83,585 350,281 376.379 (26,098) 4,283,381 4.752.939 (469,558) 168,073 690.229 (522,156) 322,123 440.427 (118,304) 146,505 504.838 (358,333) 216,367 237.829 (21,461) 285,874 270.848 15,026 817,349 468.495 348,854 2,761,476 175.038 2,586,438 1,982,838 634.362 1,348,477 7,770,653 4.282.513 3,488,140 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Fann E-1 Data Request For The Test Year Ended December 31, 2016 And The Twelve Months Ended December 31, 2015 Item No.12A COMPARISON OF TEST YEAR ACCOUNT BALANCES \l\llTH THOSE OF PRECEDING YEAR ELECTRIC OPERATING EXPENSE ACCOUNTS Total For 12 Time Period Test Year Prior Year Account Number & Description 0553000 0553000 Maint-Gentg and Elect Equip-CT Maint-Gentg and Elect Equip-CT Increase (Decrease) Test Year Prior Year 0554000 0554000 Misc Power Generation Plant-CT Misc Power Generation Plant-CT Increase (Decrease) Test Year Prior Year 0554220 0554220 Test Year Prior Year 0555016 0555016 Test Year Prior Year 0555125 0555125 0555135 0555135 !!!!l!ll .8Wi! June dY.!l! August September October 0555200 0555200 0555202 0555202 964,431 839.921 124,510 2,593,349 1.179.773 1,413,577 785,922 811.130 (25,207) 645,289 1.408.862 (763,573) 1,253,384 (725.696) 1,979,081 1,626,397 760.816 865,581 2,341, 156 908.258 1,432,898 5,960,987 369.720 5,591,267 9,639,997 1.223.623 8,416,374 3, 195,595 1.991.664 1,203,931 30,672,705 9.897.418 20,775,288 837,851 1.434,924 (597,073) 1,255,368 283, 173 972,196 1,289,710 911,843 377,867 1,262,635 617,371 645,264 1,403,010 770,938 632,072 1,185,864 (351,763) 1,537,627 1,092,379 1,597,522 (505,143) 1,359,585 655,929 703,656 1,369,189 968,505 400,685 1,712,813 1,586,726 126,087 1,344,144 1,200,275 143,870 1,303,704 2,053,899 (750,195) 15,416,253 11,729,341 3,686,911 9,021 7,215 8,346 4,667 2,511 3,836 440 9,021 7,215 8,346 4,667 2,511 3,836 440 37,848 l/C Joint Disp - Pur Pwr l/C Joint Disp - Pur Pwr Purchased Power - Renewable Purchased Power - Renewable Purchased Power-Co Generation Purchased Power-Co Generation 4,034,297 18.382.281 (14,347,984) 1,132,577 4.944.586 (3,812,009) 1,220,391 1.616.116 (395,725) 388,107 2.523.891 (2,135,784) 989,218 9.685.120 (8,695,903) 2,250,031 3.580.177 (1,330,147) 3,642,396 1.955.285 1,687,110 3,380,250 1.324.315 2,055,935 7,641,032 1.186.394 6,454,637 2,790,529 1.404.177 1,386,352 7,189,554 1.777.744 5,411,811 38,331,512 51.678.839 (13,347,327) 10,588,845 10.746.221 (157,376) 15,023,552 9.857.744 5,165,807 14,530,128 11.234.875 3,295,253 18,824,813 12.332.653 6,492,160 18,898,281 10.824.729 8,073,552 16,179,815 13.546.592 2,633,222 21,437,349 13.754.736 7,682,613 20,059,642 14.343.219 5,716,422 22,374,322 12.512.050 9,862,272 14,418,801 12.179.059 2,239,742 11,055,020 12.842.298 (1,787,278) 15,998,913 11.889.308 4,109,605 199,389,479 146.063.485 53,325,994 1,766,157 1.806.371 (40,214) 2,688,446 1.999.684 688,762 3,215,954 2.645.122 570,833 4,050,253 3.213.616 836,636 6,855,676 3.609.341 3,246,336 2,496,172 3.723.184 (1,227,012) 5,328,043 3.721.794 1,606,250 5,106,055 3.196.873 1,909,182 384,327 2.602.683 (2,218,355) 2,893,971 2.510.575 383,396 3,644,489 1.895.824 1,748,665 2,770,508 1.696.586 1,073,922 41,200,052 32.621.652 8,578,400 33 (33) (33) 33 18,796,332 7.618.066 11,178,266 12,550,923 12.831.879 (280,956) Test Year Prior Year 0555750 0555750 0556000 0556000 0557000 0557000 Test Year Prior Year 0557001 0557001 0557450 0557450 Test Year Prior Year 0557451 0557451 0557980 0557980 0560000 0560000 0561100 0561100 29,131 38.291 (9,160) 31,258 3.777 27,482 (588) 3.511 (4,099) 22,490 2.426 20,064 1,815 5.135 (3,320) 11,988 3.509 8,480 130,271 69.115 61,156 123,494 114.348 9,145 141,648 115.752 25,897 144,437 117.194 27,243 143,259 116.218 27,041 137,521 114.998 22,524 141,369 115.098 26,271 137,903 119.969 17,934 137,524 125.095 12,429 139,660 122.876 16,784 142,404 117.422 24,982 1,629,675 1.411.430 218,246 7,310,886 5.776.008 1,534,878 4,705,933 4.745.802 (39,870) 7,364,128 7.036.385 327,743 8,072,938 7.375.650 697,288 6,990,511 5.974.078 1,016,433 8,078,018 6.981.919 1,096,099 7,229,069 6.403.184 825,885 8,274,714 7.409.911 864,803 7,183,943 5.665.828 1,518,114 8,592,850 10.109.638 (1,516,788) 84,847,772 77.002.059 7,845,713 1,200 600 600 1,200 600 600 600 (600) 600 600 600 600 1,200 600 600 1,200 600 600 12,600 7.200 5,400 500 1,325 500 1,325 3.250 (3,250) 625 (625) 7,795 16.375 (8,580) 3,934 2.782 1,152 119,592 113.149 6,443 120,865 119.312 1,552 5,931,317 2.903.807 3,027,510 5,113,467 6.619.851 (1,506,383) System Cnts & Load Dispatching System Cnts & Load Dispatching Other Expenses-Oper Other Expenses-Oper 20,156,353 10.196.680 9,959,673 NC REPS - RECS RECOVERY NC REPS - RECS RECOVERY 364 Increase (Decrease) 364 (364) 1,200 600 600 1,200 600 600 33,590,273 30.287.073 3,303,200 17,965,895 16.059.618 1,906,277 10,461,350 6.154.141 4,307,209 206,530,267 200.104.902 6,425,366 24.665 (24,665) (364) 1,200 600 600 1,200 600 600 EA & Coal Broker Fees EA & Coal Broker Fees 970 Increase (Decrease) 970 5,000 12.500 (7,500) 1,490,208 (4374651) 5,864,859 8,891,001 (77354926) 86,245,927 25,459,871 21553627 3,906,244 17,320,451 18855103 (1,534,652) 8,557,037 876623 7 ,680,415 2,863,047 (1974616) 4,837 ,663 (11,007,596) 8592325 (19,599,920) (1,339,930) 21647478 (22,987 ,408) 7, 131,847 36379456 (29,247 ,609) 4,929,077 30320997 (25,391,919) 7,314,452 11397597 (4,083, 146) (10,853,484) 27248460 (38, 101,944) 60,755,982 93167472 (32,411,490) (22,665) (3.101) (19,564) 1,054 6.624 (5,570) 3,176 15.113 (11,936) 1,266 12.353 (11,086) 1,343 16.151 (14,808) 3,946 8.281 (4,335) 319 21.042 (20,723) 1,246 8.962 (7,716) 2,510 (29.380) 31,890 1,884 2.602 (718) 1,318 (12.345) 13,663 72 2.254 (2,182) (4,530) 48.555 (53,085) 298,700 248,407 79,235 72,138 388,022 221,358 Commissions/Brokerage Expense Commissions/Brokerage Expense Retail Deferred Fuel Expenses Retail Deferred Fuel Expenses Supervsn and Engrng-Trans Oper Supervsn and Engrng-Trans Oper Increase (Decrease) Test Year Prior Year 13,370 4.269 9,101 3,689 1.494 2,195 Increase (Decrease) Test Year Prior Year 4,525 2.058 2,467 5,223 4,719 Increase (Decrease) Test Year Prior Year 3,435 1.359 2,076 Purchases-Generation Imbalance Purchases-Generation Imbalance Increase (Decrease) Increase (Decrease) Test Year Prior Year (1.073) 1,073 (44) 44 Increase (Decrease) Test Year Prior Year 18.151 (18,151) 7.630 (7,630) 504 32,721,397 27.448.387 5,273,010 15,845,561 22.198.823 (6,353,262) 14,863,614 30.162.570 (15,298,956) Purch Power-Fuel Clause Purch Power-Fuel Clause 8,349,723 9.167.755 (818,031) 7,654,467 10.719.890 (3,065,423) 13,574,379 17.260.021 (3,685,642) Interchange Power Interchange Power 37,848 3,673,131 3.298.751 374,379 SC DERS Purchased Power SC DERS Purchased Power Increase (Decrease) Test Year Prior Year Months 1,050,842 708.641 342,202 1,811 Increase (Decrease) Test Year Prior Year December 615,356 420.707 194,649 Increase (Decrease) Test Year Prior Year November 1,811 Increase (Decrease) Test Year Prior Year March Increase (Decrease) Increase (Decrease) 0555130 0555130 February Solar: Maint Misc Gen Pit Solar: Maint Misc Gen Pit Increase (Decrease) Test Year Prior Year January Load Dispatch-Reliability Load Dispatch-Reliability 1,800 600 1,200 73,799 79,170 352,354 426,263 216,871 492,785 76,415 76,438 378,654 134,497 210,633 495,166 73,061 75,426 74,079 68,331 214,717 523,200 2,436,540 2,913,179 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Fann E-1 Data Request For The Test Year Ended December 31, 2016 And The Twelve Months Ended December 31, 2015 Item No.12A COMPARISON OF TEST YEAR ACCOUNT BALANCES \l\llTH THOSE OF PRECEDING YEAR ELECTRIC OPERATING EXPENSE ACCOUNTS Total For 12 Time Period Account Number & Description Increase (Decrease) Test Year Prior Year 0561200 0561200 Test Year Prior Year 0561300 0561300 Load Dispatch-Mnitor&OprTrnSys Load Dispatch-Mnitor&OprTrnSys Increase (Decrease) Load Dispatch - TransSvc&Sch Load Dispatch - TransSvc&Sch Increase (Decrease) Test Year Prior Year 0561500 0561500 ReliabilityPlanning&StdsDev ReliabilityPlanning&StdsDev Increase (Decrease) Test Year Prior Year 0561600 0561600 Trans Svc Studies Trans Svc Studies Increase (Decrease) Test Year Prior Year 0561700 0561700 Generation lnterconnectStudies Generation lnterconnectStudies Increase (Decrease) Test Year Prior Year 0562000 0562000 Station Expenses Station Expenses Increase (Decrease) Test Year Prior Year 0563000 0563000 Overhead Line Expenses-Trans Overhead Line Expenses-Trans Increase (Decrease) Test Year Prior Year Test Year Prior Year 0565000 0563000 0565010 0565010 Janu.ru::'ll (5,371) Februaru (73,909) 184,467 192.336 (7,869) 170,907 174.628 (3,721) 72,125 70.736 1,389 0566000 0566000 166,664 June (275,914) 173,270 184.964 (11,694) 186,255 169.392 16,863 187,795 172.426 15,369 70,987 68.298 2,688 72,864 69.998 2,866 81,324 68.536 12,787 23,420 4.055 19,364 17,173 (0) 17,173 30,287 3.485 26,802 27,976 0 27,976 220 (220) 108 3 105 3,776 1.157 2,619 2,251 1.904 346 2,973 (47.695) 50,668 54,487 42.544 11,942 43,231 49.720 (6,489) 73,472 67.303 6,169 19,995 33.739 (13,744) Test Year Prior Year 0566100 0566100 0567000 0567000 0568000 0568000 0569000 0569000 0569100 0569100 0569200 0569200 Test Year 0569300 0569300 0570100 November 5,748 December (308,483) 186,734 13.846 172,888 178,512 173.293 5,220 175,055 159.482 15,572 183,116 87.801 95,316 181,058 159.257 21,802 183,393 149.954 33,439 200,773 172.528 28,245 2,191,336 1.809.906 381,429 83,029 68.922 14,107 81,641 66.714 14,927 77,536 68.877 8,660 78,005 68.051 9,954 78,958 68.729 10,229 79,528 72.851 6,677 79,392 69.134 10,258 84,775 70.098 14,677 940,162 830.944 109,218 16,240 8 16,233 15,330 (5.452) 20,782 15,879 15 15,865 57,685 4.400 53,285 11,823 34.861 (23,038) 14,161 (41.105) 55,267 27,351 35,081 27,351 35,081 292,406 267 292,139 800 (800) 813 (813) 545 (545) 117 (117) (95,000) 2,517 16.146 (13,629) 52,373 29.764 22,609 602 2.630 (2,028) 1,261 3.647 (2,386) (69,685) 2.076 (71,761) 1,358 65.704 (64,345) 852 2.194 (1,342) (15,008) 19.722 (34,730) (16,221) 99.546 (115,768) 36,635 118.039 (81,404) 132,738 194.716 (61,979) 235,698 326.537 (90,839) 217,283 226.280 (8,997) 262,281 174.801 87,480 61,986 139.574 (77,587) 200,719 210.095 (9,376) 152,374 133.851 18,523 33,085 118.192 (85,107) 35,473 420.627 (385,153) 1,465,991 2.154.976 (688,985) 32,706 166.428 (133,722) 173,070 107.746 65,325 109,677 97.427 12,250 54,970 240.231 (185,261) 71,861 194.046 (122,185) 44,874 85.081 (40,207) 42,838 11.125 31,713 27,824 79.688 (51,864) 16,786 22.192 (5,406) 176,173 54.002 122,171 844,247 1.159.007 (314,760) (95,000) 509 2.298 (1,789) (476,639) (94,892) 2.499 (97,390) 761 TRANS OF ELECT - PURCHASES TRANS OF ELECT - PURCHASES Misc Trans Exp-Other Misc Trans Exp-Other 10.310 (10,310) 334,594 407.719 (73,125) 2,835,121 514.608 2,320,512 (1,362,027) 590.950 (1,952,977) 10.310 (10,310) 581,157 412.585 168,572 338,599 1.113.240 (774,641) 546,662 208.050 338,613 764,283 367.485 396,798 Misc Trans-Trans Lines Related Misc Trans-Trans Lines Related 769 7,510 22,635 Increase (Decrease) 769 7,510 22,635 Rents-Trans Oper Rents-Trans Oper Suprvsn and Engrng-Trans Maint Suprvsn and Engrng-Trans Maint Maint Of Structures-Trans Maint Of Structures-Trans Maint of Computer Hardware Maint of Computer Hardware Maint Of Computer Software Maint Of Computer Software Increase (Decrease) Test Year Prior Year October (2,365) 761 Increase (Decrease) Test Year Prior Year Sfilltember (284,533) 761 Increase (Decrease) Test Year Prior Year August 244,156 761 Increase (Decrease) Test Year Prior Year Months (23) Transm Of Elec By Others Transm Of Elec By Others Increase (Decrease) Test Year Prior Year ...!!J.bl Increase (Decrease) Increase (Decrease) Test Year Prior Year MIDt: ADiil 7,098 Increase (Decrease) Test Year Prior Year March 50,293 71,197 222.043 (150,847) 205.111 (205,111) 857 (857) (0) 114 (114) 30 (30) 170 222 (53) 26,779 36.481 (9,702) 45,448 95.393 (49,945) 15,594 141.081 (125,487) 10,053 59.360 (49,307) 44,509 49.055 (4,546) (45,924) 44.846 (90,770) 24,902 509 24,393 37 (37) 242 77 165 73 (73) 21 (21) 1,770 160 1,610 204,594 151.680 52,914 222,908 193.874 29,034 234,214 166.261 67,953 247,378 200.739 46,639 181,541 149.237 32,304 9,791 1.072 8,719 2.482 (2,482) 6,337 18,101 471 (471) 890 433 457 474 (474) 41,636 85.771 (44,135) 51,892 97.789 (45,897) 761 355 406 203,778 194.395 9,383 Maint of Communication Equip Maint of Communication Equip 350 350 Maint Stat Equip-Other- Trans 205.111 (205,111) 204.271 (204,271) 1,682 16,006 3,833 783,766 469.679 314,087 510,956 636.551 (125,595) 488,550 506.380 (17,831) 6,885,154 6.239.548 645,606 30,914 753 205.111 (204,357) 6 210.648 (210,642) 678,871 403.125 275,746 30,914 960 206.061 (205,101) 1,000 205.111 (204,111) Increase (Decrease) 384,624 609.177 (224,552) 13,791 7,503 740 13,791 7,503 740 95,951 1.663.464 (1,567,513) 847 1.193 (347) 1,596 32,554 27.503 5,051 11,047 31.129 (20,081) 20,016 78.599 (58,583) 26,484 60.969 (34,485) (231) 231 26 (26) 9 307 (298) 3.494 (3,494) 16 (16) 27,684 4.845 22,839 175,045 175.697 (652) 167,195 168.692 (1,497) 167,528 190.526 (22,998) 161,941 190.198 (28,257) 228,125 180.088 48,037 541,135 201.353 339,782 2,735,383 2.162.739 572,643 1.970 (1,970) 1.893 (1,893) 16.059 (16,059) 2.222 (2,222) 1.989 (1,989) 961 (961) 28,082 17,567 12,636 59,690 18,286 3,502 3.795 (293) 1,596 20,156 280,089 807.975 (527,887) 10,142 28.649 (18,507) 29,029 231,404 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Fann E-1 Data Request For The Test Year Ended December 31, 2016 And The Twelve Months Ended December 31, 2015 Item No.12A COMPARISON OF TEST YEAR ACCOUNT BALANCES \l\llTH THOSE OF PRECEDING YEAR ELECTRIC OPERATING EXPENSE ACCOUNTS Total For 12 Time Period Prior Year Test Year Prior Year Account Number & Description 0570100 0570200 0570200 Maint Stat Equip-Other- Trans January February !!!!l!ll June 24.428 (20,595) 46.398 (40,062) 161.909 (143,808) 175.519 (147,437) 299,094 462.891 (163,797) 598,704 469.932 313,951 577.193 (263,242) 462,547 353.314 44,718 659,975 1.554.222 (894,247) 502,717 183.277 1,287,567 1.092.548 68,160 1.347.562 1,791,860 1.504.981 319,440 195,020 (1,279,402) 1,028,945 1.353.771 (324,826) 286,879 5.724 (5,724) 76.375 (76,375) 8.223 Increase (Decrease) 21.124 (19,442) Main-Cir BrkrsTrnsf Mtrs- Trans Main-Cir BrkrsTrnsf Mtrs- Trans 272,996 159.504 287,967 243.250 Increase (Decrease) 113,492 7,784 March 8Wi! 128,771 Test Year Prior Year 0571000 0571000 Maint Of Overhead Lines- Trans Maint Of Overhead Lines- Trans Test Year Prior Year 0572000 0572000 Maintenance of Underground Lin Maintenance of Underground Lin (1,764) 547 26 Increase (Decrease) (1,764) 547 26 Increase (Decrease) Test Year Prior Year Test Year Prior Year 0573000 0573000 0580000 0580000 Maint Of Misc Transm Plant Maint Of Misc Transm Plant 0581004 0581004 0582100 0582100 0582200 0582200 0583100 0583100 Test Year Prior Year 0583200 0583200 0584000 0584000 0585000 0585000 0586000 0586000 0587000 0587000 0588100 0588100 Test Year Prior Year 0589000 0589000 7,667 23,936 485,443 190.205 634,437 202.395 529,618 230.242 437,641 224.083 458,527 146.030 295,238 432,041 299,376 213,558 312,497 1,177,599 3,303,443 2.056.290 1,589,492 883.222 1,613,964 745.602 10,286,562 964.010 4,531,203 1.207.349 23,519,116 13.679.133 1,247,153 706,270 868,362 9,322,552 (3, 144, 772) 786.300 (3,931,073) 3,323,854 9,839,983 72.696 (72,696) 36.366 (36,366) 10.986 (10,986) 13.069 (13,069) (1,192) 272.726 (273,918) 587,461 931.747 (344,286) 33.282 (33,282) 112 6.984 1,684 144 666 279 (777,097) 2.730 (759,297) 84.612 618 (6,872) (699) (660) 1,540 387 (779,827) (843,909) Supervsn and Engring-Dist Oper Supervsn and Engring-Dist Oper 54,569 122.949 (68,380) 83,622 65.724 66,866 110.864 (43,998) 48,780 134.020 (85,240) 52,097 116.842 (64,745) 51,132 134.806 (83,674) 48,056 125.496 (77,440) 47,540 105.316 (57,776) 59,332 146.042 (86,710) 44,612 95.601 (50,989) 67,449 19.186 17,898 93,922 119.232 (25,310) 48,262 717,977 1.296.078 (578,101) 449,576 465.788 (16,211) 406,199 437.034 (30,835) 460,114 473.945 (13,832) 573,995 495.733 358,734 605.063 (246,329) 460,936 503.577 (42,641) 378,287 489.824 (111,537) 399,949 486.828 (86,879) 517,768 474.881 42,887 421,697 570.566 (148,869) 381,091 462.659 (81,567) 406,469 540.872 (134,403) 5,214,815 6.006.770 (791,955) 134,794 150.460 (15,665) 130,988 124.960 104,208 120.528 (16,319) 102,682 98.250 105,520 173.473 (67,952) 83,982 147.796 (63,814) 89,607 88.078 97,021 130.798 (33,776) 79,431 103.547 (24,116) 61,379 109.118 (47,739) 104,250 72.881 137,393 155.190 (17,797) 1,231,257 1.475.077 (243,820) 10,218 1.462 5,470 1.640 4,235 2.136 30,701 2.935 4,178 5,884 22,865 1,760 2,844 3.184 (340) 110,267 44.107 27,766 3,384 8.272 (4,888) 4,518 2.758 2,099 961 5,055 25,058 2.194 3,830 3,046 13.851 (10,805) 8,161 2.277 8,756 52,291 45.453 82,935 25.820 6,838 57,115 (56,391) 44.728 (101,119) 62,200 69.784 (7,584) 51,476 91.698 (40,222) 8,199 45.808 (37,608) 4,970 46.942 (41,971) 11,137 20.428 (9,291) 8,984 49.426 (40,441) 8,350 54.983 (46,634) (198,346) 57.321 (255,667) 21,097 54.448 (33,350) 56,904 606.839 (549,935) Transf Set Rem Reset Test-Dist Transf Set Rem Reset Test-Dist 10,682 10,468 9.475 994 10,201 15.085 (4,883) 10,098 9.212 886 13,481 11.016 9,611 9.004 607 13,124 8.096 10,682 9,551 13.551 (4,001) 16,314 10.446 Increase (Decrease) 9,375 16.384 (7,009) 10,964 13.548 (2,585) 10,303 22.916 (12,613) 134,171 138.734 (4,563) Station Expenses-Other-Dist Station Expenses-Other-Dist Relays And Meters-Dist Relays And Meters-Dist Overhead Line Exps-Other-Dist Overhead Line Exps-Other-Dist Underground Line Expenses-Dist Underground Line Expenses-Dist Gust Install Exp-Other Dist Gust Install Exp-Other Dist Misc Distribution Exp-Other Misc Distribution Exp-Other Rents-Dist Oper Rents-Dist Oper Supervsn and Engrng-Dist Maint Supervsn and Engrng-Dist Maint Increase (Decrease) 4,432 5,867 6,616 2.438 1,529 6,016 2,465 5,028 31,369 66,160 305,577 272,241 274,566 231.497 437,916 337, 163 471,986 24,878 358,261 5,098 490,639 943.463 359,761 (427.422) 509,967 13,068 471,575 1,577,984 344,990 412,033 12,232 411,615 674,704 280,377 4,712,175 4,081,995 33,336 43,069 100,753 447,108 353,163 (452,824) 787,183 496,899 (1,106,409) (67,042) (399,384) 394,327 630,180 1,178 601 577 2,470 696 1,426 312 190 2,285 1,115 294 1.903 (1,609) 86 1,773 1,131 197 934 86 2,285 132,971 239.590 (106,620) 388,431 217.143 371,029 231.063 779,939 292.713 543,282 394.624 484,003 258.284 802,016 288.020 827,825 277.646 964,025 277.948 684,331 512.503 728,214 574.477 805,273 257.323 7,511,340 3.821.334 171,288 139,966 487,226 148,658 225,719 513,996 550,180 686,078 171,828 153,737 547,950 3,690,006 145,942 125.110 139,820 107.922 128,981 152.191 (23,211) 189,959 148.152 212,603 138.675 233,741 134.180 203,418 159.715 2,013,972 1.639.608 39,340 41,807 73,927 99,561 152,242 155.859 (3,617) 217,721 150.559 31,897 124,315 123.783 533 160,501 121.161 20,832 104,731 122.301 (17,570) 67,162 43,703 374,364 7,864,307 2.299.575 (3,685,575) 1.045.140 3,551,283 2.549.409 399,082 2.225.472 2,435,090 1.185.226 2,219,327 2.017.635 2,443,540 1.843.696 2,109,635 1.669.078 2,394,358 2.026.721 2,753,638 1.958.087 25,567,942 22.929.206 5,564,732 2,157,618 2.232.336 (74,718) 367,637 795,551 2,638,737 215,435 310.328 (94,893) 11,421 (873.499) 884,920 2,533,934 2.669.866 (135,933) St Lghtng and Sgnl Systm-Dist St Lghtng and Sgnl Systm-Dist Meter Expenses-Dist Meter Expenses-Dist 6,029 78,262 3,702 4.361 5,368,386 4.190.787 3,381 2.763 Load Dispatch-Dist of Elec Load Dispatch-Dist of Elec 482 1.181 24.228 (24,228) 551.322 (319,918) 1,006 12.288 Increase (Decrease) 0590000 0590000 1,152 (11,282) Increase (Decrease) Test Year Prior Year 8,673 7,402 Increase (Decrease) Test Year Prior Year 4,101 796 (6.605) Increase (Decrease) Test Year Prior Year Months 5.093 60 19.080 Increase (Decrease) Test Year Prior Year December 12.489 (19,019) Increase (Decrease) Test Year Prior Year November 17.134 5,535 15.807 Increase (Decrease) Test Year Prior Year October 51.016 (10,272) Increase (Decrease) Test Year Prior Year September 8.535 377 25.602 Increase (Decrease) Test Year Prior Year August (25,225) Increase (Decrease) Test Year Prior Year 109,232 19.453 (1,887) Increase (Decrease) Increase (Decrease) Test Year Prior Year dY.!l! 925,640 1.876.831 (951,191) 200 2.524 (2,324) 677 486 191 340 4.383 (4,043) 190 (4,730,715) 1,001,873 (1,826,390) 1,249,864 201,692 599,844 440,557 215,537 332.970 (117,433) 232,528 347.317 (114,789) 291,476 322.658 (31,182) 208,067 325.832 (117,765) 222,008 273.928 (51,921) 214,947 305.438 (90,491) 210,163 306.420 (96,257) 285,307 308.872 (23,564) 51 14,816 2,594 (120) (1,352) 480 (387) (620) (640) 1,685 203 (1,685) (203) (14,764) 2,714 (1,832) 233 640 1,482 (1,482) 210,776 395.315 (184,538) 4,222 5,044 (823) 216,268 314.287 (98,019) 10,276 11.103 (827) 978 78 378 2,005 (5.423) 8, 189 13,916 978 (300) 7,427 (5,727) DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Fann E-1 Data Request For The Test Year Ended December 31, 2016 And The Twelve Months Ended December 31, 2015 Item No.12A COMPARISON OF TEST YEAR ACCOUNT BALANCES \l\llTH THOSE OF PRECEDING YEAR ELECTRIC OPERATING EXPENSE ACCOUNTS Total For 12 Time Period Test Year Prior Year Account Number & Description 0591000 0591000 January Maintenance Of Structures-Dist Maintenance Of Structures-Dist 0592100 0592100 Maint Station Equip-Other-Dist Maint Station Equip-Other-Dist Increase (Decrease) March 8Wi! October November December 1,296 15.336 (8,012) (14,040) 152,037 146.524 80,321 161.392 96,799 168.481 242,767 151.388 255,964 200.983 25,870 176.294 282,141 119.581 110,877 138.055 86,206 241.777 158,779 70.434 55,274 62.723 5,513 (81,071) (71,682) 91,380 54,981 (150,424) 162,560 (27,178) (155,572) 88,345 (7,449) 113,823 241.776 202,034 479.934 181,771 362.306 210,385 453.870 210,145 332.337 352,615 267.828 243,139 380.362 226,395 155.324 253,833 141.222 95,226 196.347 100,309 72.618 169,352 8.439 (127,954) (277,899) (180,535) Test Year Prior Year 0593000 0593000 Maint Overhd Lines-Other-Dist Maint Overhd Lines-Other-Dist 43,324,737 5.257.625 843,214 10.475.250 (735,797) Increase (Decrease) 38,067,112 (9,632,036) Right-Of-Way Maintenance-Dist Right-Of-Way Maintenance-Dist 25,531 15.520 14,143 22.593 27,468 10.068 Increase (Decrease) 10,011 (8,450) (122,191) 1,718,022 1.740.456 (22,435) 2,359,027 3.092.362 84,787 (137,224) 71,072 112,611 (101,121) 27,691 160,913 2.426.080 5,842,058 2.829.839 6,616,460 4.773.053 8,139,845 6.625.833 12,292,519 5.691.501 4,608,265 5.557.543 8,672,678 6.810.649 (6,301,141) 10.332.301 3,520,512 5.105.056 9,261,757 4.744.651 96,085,107 70.629.379 (733,335) (3, 161,877) 3,012,219 1,843,408 1,514,013 6,601,018 (949,278) 1,862,028 (16,633,441) (1,584,544) 4,517,106 25,455,728 17,281 9.793 19,074 10.194 24,240 19.150 26,766 16.778 38,400 12.779 30,078 15.596 12,887 11.264 11,995 19.329 11,686 22.858 259,549 185.922 17,400 7,488 8,880 5,090 9,988 25,621 14,482 1,623 (7,334) (11,172) 324,695 367.329 372,581 393.217 496,534 336.690 424,362 431.146 515,880 426.004 375,837 476.279 418,179 402.097 575,972 483.104 213,024 531.256 230,126 452.154 392,625 447.445 (222,027) 73,627 Test Year Prior Year 0594000 0594000 Maint-Underground Lines-Dist Maint-Underground Lines-Dist Increase (Decrease) 76,549 (42,634) (20,636) 159,845 (6,784) 89,875 16,081 92,869 (318,231) (54,821) (330,356) Test Year Prior Year 0595100 0595100 Maint Line Transfrs-Other-Dist Maint Line Transfrs-Other-Dist 78,385 56.293 76,588 63.247 70,905 76.794 80,202 53.346 53,680 86.142 54,618 61.453 57,384 67.115 59,156 66.857 79,527 63.717 48,264 101.347 58,210 75.161 55,764 65.319 772,683 836.791 Increase (Decrease) 22,091 13,341 (5,889) 26,856 (32,462) (6,835) (9,731) (7,701) 15,810 (53,083) (16,951) (9,555) (64,109) Cir Brkrs Transf Capcitrs-Dist Cir Brkrs Transf Capcitrs-Dist (1,489) 1.937 (3,987) 7.018 4,029 42.737 19,603 (19.108) 2,030 13.439 16,543 6.857 22,146 8.979 (32,310) 9.443 (16,435) (5.167) 33,790 1.398 (10,448) 3.177 (7,493) 583 25,978 71.292 Increase (Decrease) (3,426) (11,005) (38,708) 38,710 (11,409) 9,686 13,167 (41,753) (11,268) 32,392 (13,625) (8,076) (45,315) 557,982 564.498 Test Year Prior Year Test Year Prior Year 0595200 0595200 0596000 0596000 482,954 406.405 (243,485) Months 1,296 9.308 68,164 Cir BrkrsTrnsfMters Rely-Dist Cir BrkrsTrnsfMters Rely-Dist 0593100 0593100 September 170,987 102.824 0592200 0592200 Test Year Prior Year August dY.!l! (5,998) Test Year Prior Year Increase (Decrease) June !!!!l!ll 30 (30) 5.998 Increase (Decrease) Test Year Prior Year February (100,441) Maint-StreetLightng/Signl-Dist Maint-StreetLightng/Signl-Dist 840,264 882.971 395,251 578.750 681,420 558.571 529,640 621.865 94,166 483.715 376,019 350.146 692,496 556.854 535,068 234.191 723,127 635.006 990,960 836.921 Increase (Decrease) (42,708) (183,498) 122,849 (92,225) (389,548) 25,873 135,642 300,877 (6,516) (280,134) 88,120 154,040 (167,228) 142,021 107.012 135,941 115.799 133,294 116.674 172,668 123.768 139,740 182.788 149,688 161.322 149,013 157.578 156,814 151.226 172,405 138.465 133,572 182.602 152,210 141.661 163,961 139.089 1,801,325 1.717.984 (8,565) 5,588 33,940 (49,031) 10,549 24,872 83,341 2,263 344.911 4,495 260.611 6,542 234.316 1,426,022 3.479.012 (342,648) (256, 116) (227,774) (2,052,991) Test Year Prior Year 0597000 0597000 Maintenance Of Meters-Dist Maintenance Of Meters-Dist 35,009 20,142 16,620 48,900 (43,048) (11,634) Test Year Prior Year 0598100 0598100 Main Misc Dist Pit-Other-Dist Main Misc Dist Pit-Other-Dist 267,300 317.306 294,029 234.059 247,567 302.771 357,147 252.325 247,334 323.340 55,684 291.920 8,310 360.837 285.378 19,662 271.238 Increase (Decrease) (50,006) (55,204) 104,822 (76,005) (236,236) (352,527) (369,690) (251,576) Increase (Decrease) Test Year Prior Year Test Year Prior Year Test Year Prior Year Test Year Prior Year 0823000 0823000 0870000 0870000 0880000 0880000 0901000 0901000 59,970 Storage-Gas Losses Storage-Gas Losses (65) Increase (Decrease) ~ Distribution Sys Ops-Supv/Eng Distribution Sys Ops-Supv/Eng 120 (120) Increase (Decrease) 120 (120) Gas Distribution-Other Expense Gas Distribution-Other Expense 148 372 (520) Increase (Decrease) 148 372 (520) 75 90 (15) (84,312) 395,618 675.752 4,822,769 5.153.125 6,812,010 6.979.238 (65) ~ (75) 60 (60) 280 (90) 406 15 (406) (280) (406) 280 127 47 (47) 447 (447) 60 (60) 484 (494) Supervision-Gust Accts Supervision-Gust Accts 10,230 14,956 11,439 24,100 12,391 15,802 9,282 13,120 12,811 19,315 183,209 74,812 12,147 (41,004) 12,205 17,841 10,611 34,179 12,768 15,085 (9,515) 11,310 3,500 2,597 Increase (Decrease) (4,726) (12,661) (3,411) (3,839) (6,504) 108,396 53,150 (5,636) (23,568) (2,317) (20,825) 904 78,964 656,621 659.163 391,351 357.100 397,998 652.637 4,468,044 3.944.389 Test Year Prior Year 0902000 0902000 Meter Reading Expense Meter Reading Expense Increase (Decrease) (49,534) 28,051 35,788 49,534 214,059 (2,542) Test Year Prior Year 0903000 0903000 Gust Records & Collection Exp Gust Records & Collection Exp 442,084 332.218 854,207 661.570 1,062,474 1.178.440 1,077,138 817.283 1,276,635 1.091.589 998,822 1.138.992 Test Year Prior Year 0903100 0903100 Gust Contracts & Orders-Local Gust Contracts & Orders-Local Increase (Decrease) Increase (Decrease) 312,683 362.217 346,871 318.819 390,080 354.292 83,482 33.949 268,157 54.097 368,902 83.450 281,077 202,113 421,081 359.358 416,018 45.000 414,799 664.305 34,251 61,723 371,018 (249,506) 285,451 (254,639) 523,656 1,042,368 712.266 1,055,884 842.721 889,328 806.136 931,086 376.025 785,277 745.547 1,153,243 804.934 11,568,545 9.507.720 109,866 192,637 (115,966) 259,854 185,046 (140,170) 330,101 213,163 83,192 555,062 39,731 348,309 2,060,824 1,000,307 1.179.041 1,039,933 535.772 810,357 1.082.262 1,272,108 961.499 943,101 533.328 921,604 636.771 948,121 467.961 1,049,739 793.915 1,129,410 1.157.965 985,774 1.018.169 1,058,629 960.747 1,082,569 1.121.314 12,241,651 10.448.744 (178,734) 504,161 (271,905) 310,609 409,772 284,833 480,160 255,824 (28,555) (32,395) 97,882 (38,745) 1,792,907 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Fann E-1 Data Request For The Test Year Ended December 31, 2016 And The Twelve Months Ended December 31, 2015 Item No.12A COMPARISON OF TEST YEAR ACCOUNT BALANCES \l\llTH THOSE OF PRECEDING YEAR ELECTRIC OPERATING EXPENSE ACCOUNTS Total For 12 Time Period Test Year Prior Year Account Number & Descrigtion 0903200 0903200 March 495,519 615 077 (119,558) 569,017 489 135 1,167,990 909 477 0903300 0903300 Gust Collecting-Local Gust Collecting-Local Increase (Decrease) Test Year Prior Year 0903400 0903400 Gust Receiv & Collect Exp-Edp Gust Receiv & Collect Exp-Edp Increase (Decrease) 0903750 0903750 February Gust Billing & Acct Gust Billing & Acct Increase (Decrease) Test Year Prior Year Test Year Prior Year January Common - Operating-Gust Accts Common - Operating-Gust Accts Increase (Decrease) 258,514 17,446 6 552 10,894 583,168 467 245 485,586 173 378 453,659 406 444 115,923 312,208 47,215 350,163 741 608 (391,445) 365,265 773 482 (408,217) 369,426 758 259 (388,832) 329,892 80 350 22,736 29 822 (7,087) 22,961 23 819 (858) 18,534 38 901 (20,367) 23 1 958 (1,935) 2,477 2153 2,106 4,630 2,106 195 (195) 0904000 0904000 Un collectible Accounts Un collectible Accounts Increase (Decrease) 807,296 608 856 310,332 190 838 198,440 Test Year Prior Year 0904001 0904001 BAD DEBT EXPENSE BAD DEBT EXPENSE Increase (Decrease) (125,380) 606 (125,986) 52,583 69 869 (17,287) 53,091 57 484 (4,393) Test Year Prior Year Test Year Prior Year Test Year Prior Year Test Year Prior Year Test Year Prior Year 0905000 0905000 0908000 0908000 0908150 0908150 0908160 0908160 0909650 0909650 0910000 0910000 Misc Customer Accts Expenses Misc Customer Accts Expenses Increase (Decrease) Commer/lndust Assistance Exp Commer/lndust Assistance Exp Increase (Decrease) 449,271 819 950 (370,679) 319,830 853 645 (533,815) 373,089 350 304 23,902 11 217 34,039 31 261 2,778 36,563 60 353 (23,790) 23,259 60 789 (37,530) 21,992 8 835 12,685 6,064 8 711 (2,647) 21,747 167 972 (146,225) 634 941 (307) 1,792 585 22 562 672 285 672 285 593 (593) 382,474 2 221 505 434,542 2 567 459 735,362 (1 066 768l (1,839,031) (2,132,917) 1,802,131 36,711 253 939 (217,228) 543,064 94119 249,542 1,792 25,063 {82 028) 107,091 45,333 78 613 (33,280) 29,561 69493 (39,932) 13,609 6 071 55,506 (5,427) 55 292 (60,719) (107,949) 106 428 (214,377) 64,069 60 651 39,892 90 127 (50,234) 41,906 50 070 (8,164) 44,116 52473 (8,357) 10 7,538 47,881 54 310 (6,429) 66,920 22 224 44,696 70,088 51118 18,970 13,157 76,131 77 262 (1,131) 22,786 ~ 531,293 628 002 (96,709) 6,390,111 6150475 346,493 728 185 (381,692) 5,004,055 9 064 260 52,772 (85 203l 137,975 239,636 (4,060,205) 302,015 363 028 (61,014) 8,574 1 556 7,018 904,681 166 434 738,247 6,669,543 11 924 424 (5,254,881) (269,675) {7 658) (262,017) 302,907 592 668 (289,761) 57,069 49 826 59,643 51 523 7,243 8,120 663,023 730 728 (67,705) 448,946 207 21 187 121 121 339 12 327 2,371 3,966 1,595 2,371 3,966 176 55 1,287 10 176 55 1,287 10 1 552 (1,552) 2 533 (2,533) 8 996 (8,996) 25,184 34 012 (8,828) 20,638 28 398 (7,760) 505,660 270 960 322,932 253 788 Misc Advertising Expenses Misc Advertising Expenses Increase (Decrease) 2,414 565 (44 635l 1,849 44,635 Misc Gust Serv/lnform Exp Misc Gust Serv/lnform Exp Increase (Decrease) 30,834 16 269 28,791 19 842 14,565 8,949 276,319 41 669 234,650 234,700 69,144 Test Year Prior Year 0912000 0912000 Demonstrating & Selling Exp Demonstrating & Selling Exp Increase (Decrease) 421,756 328 051 437,751 381 895 93,706 55,856 266,601 410 361 (143,760) 308,356 351 263 (42,906) Test Year Prior Year 0912300 0912300 Economic Development Discount Economic Development Discount Increase (Decrease) Test Year Prior Year 0913001 0913001 Advertising Expense Advertising Expense Increase (Decrease) A & G Salaries A & G Salaries 363,034 1088105 (725,071) 51,075 {4431) 235,044 425 102 (190,058) 0920000 0920000 269,682 1264413 (994,731) 119,494 Exp-Rs Reg Prod/Svces-CstAccts Exp-Rs Reg Prod/Svces-CstAccts Increase (Decrease) Test Year Prior Year 299,918 696 483 (396,565) 99,522 December 1,595 Gust Assist Exp-General Gust Assist Exp-General Increase (Decrease) Misc Sales Expenses Misc Sales Expenses Increase (Decrease) 509,656 613418 (103,762) 571,595 472 072 272,978 484,891 1 018 365 (533,474) 9 9 November 698,224 425 246 655,639 1174785 (519,147) 3,418 October 550,024 810 727 (260,703) 838,780 3 452 833 (2,614,054) 56,552 66 014 (9,462) Segtember 424,720 445 602 (20,882) 645,908 726 831 (80,923) 0910100 0910100 0916000 0916000 August 258,657 420 539 (161,882) Test Year Prior Year Test Year Prior Year dY.!l! 210,982 442 747 (231,765) 10 Gust Asst Exp-Conservation Pro Gust Asst Exp-Conservation Pro Increase (Decrease) June 517,652 604 130 (86,478) 79,882 Test Year Prior Year Test Year Prior Year !!!!l!ll 8Wi! 7,422 7 032 390 10,157 4 827 33,896 4 287 5,330 29,609 3,330 46 657 (43,327) 8,321 3 862 6,461,573 6,426,645 134 (134) 37,418 8403 12,438 184 29,015 12,254 29,670 34 810 (5,140) 78,418 26421 269,840 257 771 285,423 224 320 51,997 705 (705) 209 (209) 1 400 (1,400) 1,527 2448 (921) 4,354 19 211 (14,857) 720 102 618 5,954 17 874 (11,920) 4,095 12 212 (8,117) 13,744 9125 81,137 36122 4,619 45,015 17,708 26 632 (8,924) 28,657 12 720 29,282 18 623 20,400 11 619 42,828 18 821 10,659 8,781 24,008 10,925 18 741 (7,816) 363,336 266 907 15,937 276,522 297 794 (21,272) 389,163 234 586 391,418 276 427 434,788 395 004 4,030,014 3 402 146 154,578 114,992 350,588 365 610 (15,022) 39,783 627,869 387,325 984 174 (596,849) 422,387 528 284 (105,897) 617,791 199 680 737,018 537 055 856,184 448 790 5,976,581 5 298 702 418,111 199,963 407,394 677,879 12,069 61,102 292,316 359115 (66,799) 451,277 360 027 476,560 372 954 593,575 396 169 91,251 103,606 197,406 6 (6) 6) 6 96,428 (7,587) 4 585 (12,171) 12,453 15 638 (3,186) 9,856 14 512 (4,656) 4,626 15170 (10,544) 16,674 12 338 17,456 44 392 (26,937) 25,166 30 195 (5,029) 19,600 10 941 164,394 26 250 314,113 190 167 4,337 8,659 138,144 123,946 1,020 3 544 (2,524) 4,263 1 641 2,622 6,398 19450 (13,053) (8,827) 3 832 (12,659) (8,768) 12103 (20,871) 4,154 12 039 (7,886) 2,055 18413 (16,357) 5,646 6 320 (674) 8,650 1 545 4,459 (9,651) 5 743 (15,393) 7,105 16,591 135150 (118,558) 5,801,061 5,120,467 13,016,204 6,415,058 5,930,984 6,676,716 5,616,425 6,929,269 11,766,267 7,261,399 5,847,859 6,572,557 5,414,337 6,132,133 19,796,157 7,586,377 6,167,017 6,534,850 6,406,575 5,767,610 24,476,389 29,393,542 116,700,850 100,816,624 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Fann E-1 Data Request For The Test Year Ended December 31, 2016 And The Twelve Months Ended December 31, 2015 Item No.12A COMPARISON OF TEST YEAR ACCOUNT BALANCES \l\llTH THOSE OF PRECEDING YEAR ELECTRIC OPERATING EXPENSE ACCOUNTS Total For 12 Time Period Test Year Prior Year Test Year Prior Year Account Number & Descrigtion Increase (Decrease) 0920100 0920100 0921100 0921100 Salaries & Wages - Proj Supt Salaries & Wages - Proj Supt Increase (Decrease) 17 445 (428) Employee Exp - NC Employee Exp - NC Increase (Decrease) Test Year Prior Year 0921103 0921103 Employee Exp - WH Employee Exp - WH Increase (Decrease) Test Year Prior Year 0921110 0921110 Relocation Expenses Relocation Expenses Increase (Decrease) 0921200 0921200 Office Expenses Office Expenses Increase (Decrease) Test Year Prior Year 0921300 0921300 Telephone And Telegraph Exp Telephone And Telegraph Exp Increase (Decrease) Test Year Prior Year 0921400 0921400 (724,697) (717,796) Segtember 12,209,780 October (367,833) November 638,965 December (4,917,153) 4 (4) 446,954 442,643 806 377 (363,734) 50,254 390 484 (340,230) 467,792 479 710 (11,918) 145,899 88 854 176,769 470 349 (293,580) 481,344 472 938 1,100,819 598 031 8,407 5,020 537 086 (532,067) 450,894 240 112 57,045 210,782 502,789 343 8 335 172 292 (121) 56 30 26 156 140 16 46 477 (431) 64 47 17 96 603 (507) 14 292 (278) 20 277 41 21 39 20 277 41 21 39 630,752 782 786 (152,034) 999,797 811182 188,616 1,266,137 1 642 430 (376,293) 4 (4) (108,882) 1120 651 (1,229,533) 46 120 (74) (13,540) 20 78 (59) 20 108 (88) 413,998 351 501 971,446 {92 860) 62,498 1,064,305 480,748 764 004 (283,257) 2,318,788 616 398 1,702,390 246,857 542 065 (295,208) (13,540) 35 17 18 49 4 44 (487,432) 1 993 771 (2,481,202) 21 (21) (481,588) {101 000) (380,588) (433,604) {780 368) Months 15,884,226 12 29 (17) 346,764 3,877,042 4226419 (349,377) 329 326 3 401 90 310 1,727 2 767 (1,040) 292 (292) 292) 292 91 3424 (3,332) 20 20 0 (12,897) 3 753 (16,651) 561,237 628 310 (67,073) 1,118,215 1192827 (74,612) 8,411,662 10 353 065 (1,941,403) 138 61 77 69 150 (81) 126 64 62 128 73 56 72 24 48 126 65 61 367 290 77 1,758 1 044 714 Computer Services Expenses Computer Services Expenses Increase (Decrease) 439,153 188 827 299,177 483 448 (184,271) 193,712 885 670 (691,959) 267,863 725 024 (457,162) 319,611 212 003 357,895 {1 072 084) 409,575 307 619 426,765 144 216 326,859 317164 585,493 473 000 4,535,847 3 758 010 1,429,980 452,756 970 502 (517,745) 456,988 122 621 107,608 334,367 101,956 282,550 9,695 112,493 777,836 219,006 225 440 (6,434) 227,726 213 071 193,695 271117 (77,422) 160,096 158 028 121,119 276 671 (155,553) 122,582 216 995 (94,413) 149,909 331 842 (181,933) 3,089,763 2 933 919 2,068 168,103 258 087 (89,984) 1,203,875 240 690 14,655 203,209 216 781 (13,572) (19,764) 1 698 (21,462) 2,610 7 019 (4,410) 993 3 077 (2,084) 1,617 1189 429 667 2 040 (1,373) 981 1170 (189) 681 1 364 (683) 1,506 1 948 (441) Other Other Increase (Decrease) Test Year Prior Year 0921800 0921800 Off Supplies & Exp - Proj Supt Off Supplies & Exp - Proj Supt Increase (Decrease) 250,326 712 67 645 0921980 0921980 Office Supplies & Expenses Office Supplies & Expenses Increase (Decrease) Test Year Prior Year 0922000 0922000 Admin Exp Transfer Admin Exp Transfer Increase (Decrease) Admin Exp Transf-Construction Admin Exp Transf-Construction Increase (Decrease) Test Year Prior Year 0922200 0922200 Admin Exp Transf-Nonutility Admin Exp Transf-Nonutility Increase (Decrease) Test Year Prior Year 0923000 0923000 Outside Services Employed Outside Services Employed Increase (Decrease) Outside Svcs Cont-Proj Supt- 963,185 129,562 235 154 (105,593) 190,882 290 042 (99,161) 1,061 37 396 (36,334) 907 1 784 (877) 2,139 1 929 210 90 30 (30) 690 1,887,978 2193972 (305,993) 1,885,270 2155002 (269,733) 1,769,385 2 537 960 (768,576) 1,899,797 2 517 772 (617,975) 690 1,862,193 2130909 (268,716) 1,922,867 2 204 236 (281,369) 185 (185) 2,161,597 2192058 (30,461) 1,856,303 2 276 675 (420,373) 2,154,416 2 088111 78,756 156 40 (156) 78,797 185 78,756 156 40 (156) 78,612 18 603 (18,603) 47 66,305 1,908,199 1 929 085 (20,885) 2,470,762 2122563 348,199 47 15404 (15,404) 2,452,522 2 078 334 374,188 15 267 (15,267) 15 202 (15,202) 3,035,734 4 455 963 4,363,916 6419707 (1,420,229) (2,055,791) 17 577 (17,577) 3,598,888 5043114 (1,444,226) 18498 (18,498) 2,504,723 5087113 (2,582,390) (5,890) 60 680 (66,570) 690 690 1,868,851 2111 702 (242,851) 155,844 90 30 61 90 Office Supply And Exp-Partner Office Supply And Exp-Partner Increase (Decrease) Test Year Prior Year 0923100 August Jul:ii: 173 100 73 0921600 0921600 Test Year June 4,504,868 188 45 142 Test Year Prior Year 0922100 0922100 (1,312,844) 136 71 64 Computer Rent (Go Only) Computer Rent (Go Only) Increase (Decrease) Test Year Prior Year Mi!lGBP (745,731) 181 53 128 0921540 0921540 0921900 0921900 Agril 55 49 6 Test Year Prior Year Test Year Prior Year March 6,601,147 12 1,470,800 1 023 845 0921101 0921101 Febru!i!Di: 680,593 12 Employee Expenses Employee Expenses Increase (Decrease) Test Year Prior Year Test Year Prior Year Janu!i!Di: 34,928 14115 (14,115) 1 392 (1,392) 110 (110) 110) 110 5,480,017 5 516 206 (36,189) (2,832,330) 2,948,974 5 781 305 3,116,805 3 593 002 (476,197) 23,647,618 26 460 045 (2,812,428) 47 116 058 (116,012) 4,187,619 7 697 430 2,239,356 4497413 3,438,822 1969195 (3,509,811) (2,258,056) 1,469,626 6,856,105 7 653 049 (796,944) 44,223,480 59 791 831 (15,568,351) DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Fann E-1 Data Request For The Test Year Ended December 31, 2016 And The Twelve Months Ended December 31, 2015 Item No.12A COMPARISON OF TEST YEAR ACCOUNT BALANCES \l\llTH THOSE OF PRECEDING YEAR ELECTRIC OPERATING EXPENSE ACCOUNTS Total For 12 Time Period Prior Year 0923100 Test Year Prior Year 0923980 0923980 Account Number & Descrigtion Outside Svcs Cont-Proj SuptIncrease (Decrease) January February March 8Wi! !!!!l!ll June dY.!l! August Segtember October November December 866 (866) ~ 866 (866) Outside Services Employee & Outside Services Employee & Increase (Decrease) 302,077 280 475 108,365 152 765 (44,400) 169,056 141 007 391,028 158 680 103,724 131152 (27,428) 251,159 70 968 87,584 101,698 103 276 (1,577) 102,730 89 540 232,348 130,980 144 029 (13,049) 102,063 80 377 28,049 (151,459) 126419 (277,878) 294,296 206 712 21,602 21,686 13,190 180,192 1,905,717 1 685 398 220,320 10,584 (11 901l 507,885 (25 901l 17,196 (11 713l 8,866 (11 713l (5,748) (26 026l 58,181 41 048 8,866 (113 216l (6,010) (5 725l (285) 8,866 8 755 111 12,839 (22l 619,918 (175 526l 12,861 (10,471) (5 725l (4,746) 650,500 782 750 (132,250) 650,500 782 750 (132,250) 650,500 782 750 (132,250) 650,500 782 750 (132,250) 1,326,481 1 375 560 (49,079) 1,326,481 1383311 (56,830) 1,326,481 1383109 (56,628) (3, 763, 727) (3 699 420l (64,307) 9,827,790 9 066 278 2,523,831 6 340 726 311,397 500 292 (188,895) 338,302 418 761 (80,459) 1,874,824 2 580 974 (706,150) 7,480,616 13 218 334 3,658,000 3 477 000 Test Year Prior Year 0924000 0924000 Property Insurance Property Insurance Increase (Decrease) 8,866 (13 389l Test Year Prior Year 0924050 0924050 Inter-Co Prop Ins Exp Inter-Co Prop Ins Exp Increase (Decrease) 650,500 782 750 (132,250) 650,500 782 750 (132,250) 650,500 782 750 (132,250) 650,500 782 750 (132,250) 650,500 782 750 (132,250) 650,500 782 750 (132,250) 650,500 782 750 (132,250) Test Year Prior Year 0924980 0924980 Property Insurance For Corp. Property Insurance For Corp. Increase (Decrease) 1,363,373 1 208 516 1,363,373 1 262 087 1,309,538 1192899 1,326,481 1189033 1,773,486 1 398 946 1,320,053 1 287 632 154,858 101,287 116,639 137,448 374,540 32,421 (170,713) (62 872l (107,841) 298,169 446 685 (148,516) 297,400 426 586 (129,187) 384,747 564 322 (179,574) 306,616 411 982 (105,366) 285,605 419206 (133,601) 243,874 272 724 (28,850) 302,744 424 120 (121,376) 313,106 411 956 (98,849) 304,833 289 750 304,833 289 750 304,833 289 750 304,833 289 750 304,833 289 750 304,833 289 750 304,833 289 750 304,833 289 750 304,833 289 750 304,833 289 750 304,833 289 750 304,833 289 750 15,083 15,083 15,083 15,083 15,083 15,083 15,083 15,083 15,083 15,083 15,083 15,083 181,000 19,222 17 870 17,983 18148 (165) 207,976 546 805 (338,829) 92,394 19 794 18,287 18 062 224 163,404 44 904 20,394 17 330 20,066 18 706 19,812 17 478 20,503 18419 19,424 17156 20,120 16 098 118,500 3,064 1,359 2,334 2,084 2,268 639,585 770 771 (131,186) Test Year Prior Year 0925000 0925000 Injuries & Damages Injuries & Damages Increase (Decrease) Test Year Prior Year 0925051 0925051 INTER-CO GEN LIAB EXP INTER-CO GEN LIAB EXP Increase (Decrease) Test Year Prior Year 0925200 0925200 Injuries And Damages-Other Injuries And Damages-Other Increase (Decrease) Test Year Prior Year 0925300 0925300 Environmental lnj & Damages Environmental lnj & Damages Increase (Decrease) Test Year Prior Year 0925980 0925980 Injuries And Damages For Corp. Injuries And Damages For Corp. Increase (Decrease) Test Year Prior Year 0926000 0926000 EMPL PENSIONS AND BENEFITS EMPL PENSIONS AND BENEFITS Increase (Decrease) 22,255 1,352 24,157 25 387 (1,230) 6,829,658 8 547 655 (1,717,997) 0926420 0926420 Employees' Tuition Refund Employees' Tuition Refund Increase (Decrease) 101 (101) Test Year Prior Year 0926430 0926430 Employees'Recreation Expense Employees'Recreation Expense Increase (Decrease) 624 (624) Test Year Prior Year 0926490 0926490 OTher Employee Benefits OTher Employee Benefits Increase (Decrease) Test Year Prior Year 0926600 0926600 Employee Benefits-Transferred Employee Benefits-Transferred Increase (Decrease) 0928000 0928000 Regulatory Expenses (Go) Regulatory Expenses (Go) Increase (Decrease) Test Year Prior Year 0928053 0928053 Travel Expense Travel Expense Increase (Decrease) Test Year Prior Year 0929000 0929000 Duplicate Chrgs-Enrgy To Exp Duplicate Chrgs-Enrgy To Exp Increase (Decrease) 533,785 28,909 72,600 20,579 25 347 (25,347) Test Year Prior Year Test Year Prior Year 22,485 24,157 25 387 (1,230) 24,157 25 953 (1,796) 6,160,155 6 755 889 8,214,240 6 929 233 6,274,565 7 171 584 1,285,007 17,133 122,081 650,500 782 750 (132,250) 1,326,481 1 147 477 179,004 63 882 (63,882) 24,157 25 387 (1,230) (595,734) 20,277 (897,019) 24,157 25 953 (1,796) 24,157 25 953 (1,796) 5,548,763 7 588 174 209,631 3 309 457 (2,039,411) (3,099,826) (3,816,895) 172 898 (172,898) 24,157 25 953 (1,796) 5,879,591 6 756 617 (877,026) 24,157 25 953 (1,796) 5,351,453 (33 146 014l 38,497,467 24,157 25 953 (1,796) 6,695,750 6 624 246 71,503 903 244 658 709 914 (205) 222 548 (327) 1,408 1 417 (8) 360 896 (536) 325 822 (497) 659 360 299 955,247 (131 10m 909,862 1 415 137 4,280,061 548 553 3,731,509 24,157 25 953 (1,796) 24,157 25 953 (1,796) 4,676,704 8 099 170 9,043,239 5 844 973 10,215,028 4 687 322 75,098,778 39 168 308 (3,422,466) 3,198,266 5,527,706 35,930,471 614 979 (365) 340 1 353 (1,012) 1,122 1 337 (215) 8,536 10407 (1,871) 63 371 (63,371) 63 388 (63,388) 12,219,802 9 893 473 298,546 833 629 394,923 940 454 81,798 871 497 502,021 994 713 489,858 899 750 364, 195 456 562 1,716,973 244 005 820,942 705 040 4,633,206 1 588 807 (505,275) (535,083) (545,532) (789,699) (492,692) (409,892) (92,367) 1,472,888 115,902 3,044,400 49,634 492,947 1,378,683 1,544,639 (153,701) 497,404 49,634 803,430 1,581, 183 546,649 2, 133,688 1,367,956 1, 164,572 49,634 (158,849) 49,634 1,055,366 1,873,615 49,634 49,634 765,733 (951,212) 1,114,939 (208,483) 1.702 (1,702) 337 (337) (2.039) 2,039 (165,956) (651,105) (753,796) 1,034,533 1.394 (1,394) 428 (428) 934 (934) (9.721) 9,721 6.964 (6,964) 1,407 (1 762 094) 1,407 (1 672 286) 1,407 (1 672 286) 1,407 (1 672 286) 1,407 (1 672 286) 1,407 (1 456 591) 1,407 (1 672 286) 1,407 (1 672 286) 1,407 1 407 1,763,501 1,673,693 1,673,693 1,673,693 1,673,693 1,457,998 1,673,693 1,673,693 0 289,884 309 740 (19,856) 1 246 (1,246) 1,086,427 (443,314) (5,737,718) 3,993,636 (22,747) 49,634 1,000,845 761,512 4,280,061 286 425 1145 (1,145) 1,874 914 961 (1,587,000) 24,157 25 953 (1,796) 17 (17) 1,052,232 1 074 979 4,022 795,444 7,806,000 9 393 000 (818,249) 296,080 (220,342) 516,422 2,326,330 7,495,556 8,056,044 (560,488) 722 (722) 472 (472) 1.194 (1,194) 1,407 1 407 1,407 1 407 1,407 1 567 16,884 (13 246 613) (0) 0 (160) 13,263,497 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Fann E-1 Data Request For The Test Year Ended December 31, 2016 And The Twelve Months Ended December 31, 2015 Item No.12A COMPARISON OF TEST YEAR ACCOUNT BALANCES \l\llTH THOSE OF PRECEDING YEAR ELECTRIC OPERATING EXPENSE ACCOUNTS Total For 12 Time Period Test Year Prior Year 0929500 0929500 Account Number & Descrigtion Admin Exp Transf Admin Exp Transf Increase (Decrease) Test Year Prior Year 0930150 0930150 Miscellaneous Advertising Exp Miscellaneous Advertising Exp Increase (Decrease) Test Year Prior Year 0930200 0930200 Misc General Expenses Misc General Expenses Increase (Decrease) Test Year Prior Year 0930210 0930210 Industry Association Dues Industry Association Dues Increase (Decrease) January (265,358) (271,834) 6,475 February (257,856) (310,777) March (254,584) (288,452) 295,834 207.265 157,546 293.102 (135,555) 2,196,396 2.742.401 (546,005) (2,322,596) (1518767) (1,740,372) (1825885) (37,092,254) (29 220 638) 762,917 1565379 (11, 192,722) (1101 031) (1,214,425) (9 801 521) (561,465) (1547803) (421, 161) (1264039) (1,431,382) (1277260) (16,290,903) (1290236) 266,839 (9196 298) (1,880,569) (802,462) (10,091,691) 8,587,096 (154,122) (15,000,668) 9,463,137 75 786,040 30 169 75 786,010 169 5,169 10 061 (4,892) 12,545 11 266 426,703 724 085 (297,383) 118,501 481133 (362,633) 50 50 0930700 0930700 7,324 281.932 (274,608) (2,463,089) (582 521) 10,091 4197 Test Year Prior Year (9,402) (483,894) (1380657) 25,698 Leased Circuit Charges-Other Leased Circuit Charges-Other Increase (Decrease) 21,187 454,209 237.007 86,142 60.444 0930600 0930600 (14,191) 157,243 524.227 (366,984) 5,894 637 (1,665) 2,302 842,878 773.549 (773,549) (850) (747) (103) (1,149) 1,593 (2,741) 12,418 (1,430) 13,848 12,964 39.974 (17,275) (2.781) 22,700 15.485 (27,010) (14,493) 7,215 217,202 (803,829) 85,514 3,405 75 3,405 75 128,676 151,027 (22,350) 5 3,897 (3,892) (230) 76 (305) 9,520 (48) 9,568 18,838 2.775 1,226 65.868 45,926 10.999 6,480 7.465 6,827 12.355 6.602 16,063 (64,642) 34,927 (985) (5,528) (6,602) 341,236 385 253 (44,017) 1,244 2 783 (1,539) 151,374 142 029 17,814 3 309 17,127 12 099 1,279 136,583 155 804 (19,221) 123,318 162 694 (39,375) 597,004 665 504 (68,500) 378,268 911 513 (533,245) 263,808 599 892 (336,083) 597,405 1 028 001 (430,596) 231,004 550 781 (319,777) 335,640 531 305 (195,666) 173,719 910 135 (736,416) 150 50 100 54 8 46 100 182 (82) 150 50 (50) 150 150 105 45 150 186 (36) 9,346 88,568 (219,539) (210,137) 14,505 Months 1,605 21,166 44.721 (23,555) 986,338 December (267, 135) (288,322) 409,876 513.130 (103,255) 896,763 November (337, 128) (322,936) 194,281 238.622 (44,341) Dues To Various Organizations Dues To Various Organizations Increase (Decrease) Test Year Prior Year October (277,017) (278,622) 164,453 76.246 88,207 33,665 Segtember 254,659 135.402 119,256 38,188 (283,365) (317,029) 57,704 148.339 (90,635) 0930230 0930230 Buy\Sell Transf Employee Homes Buy\Sell Transf Employee Homes Increase (Decrease) 27,254 August 22,103 42.409 (20,306) Test Year Prior Year 0930250 0930250 (247,710) (285,898) 38,141 1,239 7,645 (6,407) Test Year Prior Year ::!Y.bt: (275, 184) (302,448) 36,670 Exp Of Servicing Securities Exp Of Servicing Securities Increase (Decrease) Director's Expenses Director's Expenses Increase (Decrease) June (278, 107) (316,247) 33,867 0930220 0930220 0930240 0930240 M.filt: (263,565) (300,235) 52,921 Test Year Prior Year Test Year Prior Year 81!.!i! (931) (758) (173) 266,380 (7,871,615) 789,764 773.579 16,185 (917) (61) (856) 136,278 162,294 (26,016) 53,527 72.163 41,298 69.444 278,654 360.792 (18,636) (28,146) (82,138) 7,073 8 895 (1,822) 153,271 176 757 (23,486) 976,847 1 075 146 (98,299) 156,920 470 748 (313,827) 154,062 636 263 (482,201) 326,711 1 025 021 (698,310) (4,774,636) 158 (158) 143 289 (146) 100 100 100 100 1,147 1 277 (130) 118,621 73.688 5,028 (12,141) 2,765 (14,906) (3,226,558) (3,492,937) 3,759,745 8 534 381 Research & Development Research & Development Increase (Decrease) (818) (121.135) 4,117 163 10,342 1.089 17,849 1.122 4,116 5 10,169 6.013 16,014 14.816 2,784 8.557 9,822 18.049 33,063 21.157 11,164 123.851 (123,851) 120,316 3,954 9,253 16,726 4,111 4,156 1,198 (5,773) (8,227) 11,906 11,164 114,725 120 864 (6,139) 116,062 120 193 (4,132) 108,190 124401 (16,211) 92,775 96401 (3,626) 93,593 86 951 102,091 101 400 691 92,066 85 083 102,515 100 906 6,984 1,609 7,397 7 401 (3) 8,881 11 785 (2,904) 163,356 90 974 1,620,735 1 845 819 (225,084) 23,467,695 22198 724 Test Year Prior Year 0930800 0930800 R & D-Alternative Energy R & D-Alternative Energy Increase (Decrease) 126,497 128 587 (2,090) 139,891 127 546 6,642 112,380 119 517 (7,137) Test Year Prior Year 0930940 0930940 General Expenses General Expenses Increase (Decrease) 22,634 6 035 12,241 4 692 12,176 5 243 15,319 6 931 16,599 7,549 6,933 2,033,717 1794130 1,941,601 1 803 923 128,723 124179 12,344 4,545 8,159 5405 80,603 6466 10,431 9 223 62,803 9 724 12,670 8 784 8,388 2,755 74,137 1,209 53,079 (89,958) 9 306 (99,265) 1,943,666 1 821 317 1,953,296 1 784 003 1,945,495 1 755 558 2,728,359 1 927 338 1,987,647 1 868 058 1,967,380 1 862 617 3,907 44,933 1,329,509 1 336 027 (6,518) 72,382 Test Year Prior Year 0931001 0931001 Rents-A&G Rents-A&G Increase (Decrease) 1,838,661 1 806 230 32,431 239,586 137,678 122,350 169,293 189,937 1,909,889 1 933 738 (23,850) 801,021 119,589 104,764 1,597,249 1 995 994 (398,745) Test Year Prior Year 0931008 0931008 A&G Rents-IC A&G Rents-IC Increase (Decrease) 912,397 378 679 890,848 383 861 877,319 414 328 868,539 404 882 860,772 422 396 859,782 415749 867,984 411 317 854,164 404 199 844,280 432 478 862,018 367 947 858,498 167 489 914,790 369 479 10,471,391 4 572 804 533,718 506,987 462,991 463,657 438,376 444,033 456,667 449,965 411,802 494,071 691,009 545,311 5,898,587 Test Year Prior Year 0935100 0935100 Maint General Plant-Elec Maint General Plant-Elec Increase (Decrease) 492,336 948,987 141,735 184,739 762,003 (1,449,816) (1,691,061) 324,861 695,850 (1,501,575) 304,595 241,292 746,919 287,586 153,949 381,313 (1,312,919) 332.422 691,550 (1, 141,261) 89,407 388,618 312,942 536,271 1,387,306 (466,562) (456,651) (43,004) 2,211,819 (2,015,922) 2,197,425 63,302 459,332 (227,364) (1,645,341) 1,832,811 (299,211) (223,328) 1,853,869 219 600 (380) 196 228 (32) 388 140 248 565 270 294 351 3.374 798 1.179 1,074 456 411 (631) 3,523 1.091 383 343 1,437 184 10,232 7.460 (381) 618 1,042 2,432 40 1,252 2,773 Test Year Prior Year Test Year Prior Year Test Year Prior Year 0935200 0935200 1199990 1199990 Gust lnfor & Computer Control Gust lnfor & Computer Control Increase (Decrease) 887 226 661 99 28 71 99 Shared Services/Im Clearing Shared Services/Im Clearing Increase (Decrease) Total O&M Expenses Total O&M Expenses Increase (Decrease) (3,022) 28 (28) 99 303,690,378 307 013 552 (3,323, 173) 265,005,277 340 717 720 261,425,792 299 094 165 226,063,386 264 475 722 235,904,765 249 984 145 286,103,841 304 771 596 (75,712,444) (37 ,668,373) (38,412,336) (14,079,380) (18,667,755) 1,268,971 315,426,179 311 318109 316,490,944 286 834 708 291,859,890 316 514 906 253,974,401 269 918 947 4,108,070 29,656,236 (24,655,016) (15,944,546) 242,996,252 250 729 812 (7,733,560) 304,255, 137 298 529 929 5,725,208 3,303,196,241 3 499 903 310 (196,707,069) DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For The Test Year Ended December 31, 2016 And The Twelve Months Ended December 31, 2015 ltemNo.12A COMPARISON OF TEST YEAR ACCOUNT BALANCES WITH THOSE OF PRECEDING YEAR ELECTRIC OPERATING EXPENSE ACCOUNTS Total For 12 Time Period Test Year Prior Year Test Year Prior Year Test Year Prior Year Test Year Prior Year Test Year Prior Year Test Year Prior Year Test Year Prior Year Test Year Prior Year Test Year Prior Year Test Year Prior Year Test Year Prior Year Test Year Prior Year Test Year Prior Year 0500000 0500000 0500100 0500100 0501016 0501016 0501110 0501110 0501150 0501150 0501160 0501160 0501180 0501180 0501181 0501181 0501182 0501182 0501190 0501190 0501200 0501200 0501210 0501210 0501310 0501310 Account Number & Description Suprvsn and Engrg - Steam Oper Suprvsn and Engrg - Steam Oper Increase (Decrease) Fossil Oper Superv&Engineer-Re Fossil Oper Superv&Engineer-Re Increase (Decrease) (526,118) (364,761) 41,612,542 52 099 896 (10,487,353) 28,783,854 57 340 853 (28,556,999) Coal Sampling & Testing Coal Sampling & Testing Increase (Decrease) Sale Of Fly Ash-Revenues Sale Of Fly Ash-Revenues Increase (Decrease) 880 282 768,575 1116 238 (347,663) _M_., 872,545 781 454 91,091 129 589 (480) (107,563) (69,869) (26,976) (1 249 452) 1,141,889 (168 930) 99,061 6,848,939 33 641 686 (26,792,747) 13,964,397 21003117 (7 ,038, 720) 21,160,253 31 558 872 (10,398,619) 163,962 190 938 Test Year Prior Year 0502020 Ammonia - Qualifying Ammonia - Qualifying Increase (Decrease) (499,086) (269,352) (229,898) (189,397) 4,612 882 762 (762) 597 (597) 556 (556) 356 (356) 4,612 882 876,793 (57 817) 934,610 48,803,036 58 263 916 (9,480,879) 727,927 997 279 August 595,128 825 026 September 699,743 889141 October 1,403,082 833 963 569,119 4!!h'. 850,584 4 364 846,220 1,272,888 323 857 949,031 63,504,296 57 971 728 5,532,568 59,948,560 54 244 853 5,703,707 1,198,543 (1 312 582) 2,511,126 45,740,838 30 246 615 15,494,223 122 999 (122,999) 29,884,983 21695166 8,189,817 November (62,252) 851 257 (913,509) December 457,756 868 598 (410,841) 887 138 749 Months 8,817,407 11143446 (2,326,040) 6,510 5 049 1,461 3,294,460 5119985 (1,825,525) 3 704 167 (3, 704, 167) 1 833 778 (1,833,778) 14,094,649 18 867 378 (4,772,729) 20,340,092 13 422 494 6,917,598 394,686,440 450 356 574 (55,670, 134) 93,670 353 167 89,739 306 872 119,259 282 178 84,766 403 331 86,215 303 166 85,349 369 315 96,994 407 036 77,604 328 573 85,914 388 728 92,504 170 159 112,419 143 306 (259,496) (217,134) (162,918) (318,565) (216,951) (283,966) (310,042) (250,969) (302,814) (77,655) (30,887) 1,188,799 4 146 830 (2,958,031) (1,439) (4,102) (5,267) (3,597) 499 (4,096) (23,875) 1 673 3 893 3,041 4 804 (3,112) (7,995) (1,764) 764,620 1 518 052 (753,432) 2,087,559 948 043 1,139,516 (3,318,502) 2 321 499 (5,640,000) (76,365) 115,251 (76,365) 115,251 (232,242) 350,501 (232,242) 350,501 198,730 12 054 186,675 10,723 31 661 9,275 26 404 (20,938) (17,129) 14,013 (14,013) 14,013 (14,013) 8,227 2 345 5,882 (4,663) 2 302 934 (2,307 ,597) (125,103) 4 322 (129,424) 953 3 968 (3,016) 3,410 1 986 018 (1,982,608) 122,832 55 623 67,209 500 (500) Biomass Consumption Expense Biomass Consumption Expense Increase (Decrease) Oil Consumed-Fossil Steam Oil Consumed-Fossil Steam Increase (Decrease) June 621,561 1120 648 164,366 691 000 Contra Fuel Exp Pond Ash - W/S Contra Fuel Exp Pond Ash - WIS Increase (Decrease) Coal Consumed Purch Acctg Adj Coal Consumed Purch Acctg Adj Increase (Decrease) fil!d.! (526,634) Contra Fuel Exp Pond Ash - SC Contra Fuel Exp Pond Ash - SC Increase (Decrease) Sale Of Fly Ash-Expenses Sale Of Fly Ash-Expenses Increase (Decrease) (82,794) 2 051 Coal Consumed-Fossil Steam Coal Consumed-Fossil Steam Increase (Decrease) Coal & other Fuel Handling Coal & other Fuel Handling Increase (Decrease) March 904,779 987 573 (2,051) 848 381 (1,213,142) Ammonia Expense Ammonia Expense Increase (Decrease) 0502030 0502030 (207,999) (1,406,399) 0502010 0502010 Test Year Prior Year Februarv 837,478 1 045 477 l/C Joint Dsp - Fuel Synergies l/C Joint Dsp - Fuel Synergies Increase (Decrease) Test Year Prior Year 0502020 Januarv 991,084 826 794 164,290 1,344,892 945 239 399,654 866,631 414 320 452,310 272,315 762 975 430,277 597 258 (490,660) (166,982) 594,400 1 401 522 (807,122) 5,844 4 239 1,605 (27,834) 6,711 9 505 (2,794) (39,730) 2 439 778 288 944 (2,487,612) (328,674) 38,420 25 315 13,105 289,176 5 273 283,904 1 347 1 847 1,847 (1,347) (9,282) (5,896) 4 389 (6 675) (13,671) 779 (28,954) (20,708) (364 869) 335,915 (40 176) 19,468 328,358 15 819 312,539 28,552 (28,552) 28,552 (28,552) 772,596 759 463 13,133 403,669 660 924 424,130 719 779 (257,255) (295,649) 299,087 15 744 283,343 12,880 968 11,912 2 340 (7,606) (8,563) 27,767 (29 440) 57,207 (294,887) (2 284 224) 2,284,224 1 071 980 (1,071,980) 378,205 (127 642) 505,847 286 324 (40,979) 603,287 493 823 109,464 (69 993) 69,993 501,153 31157 469,995 1,091,958 25 825 1,066,133 3,142,814 121 555 3,021,259 49 456 49 456 49,456 506,561 1 473 438 (966,876) 663,682 817 850 (154,168) 12,022 7,291,750 9 496 882 (2,205,131) 265 (265) 3,014,508 394,933 506,279 571,865 374,550 247,885 62,229 166,151 564 961 624 091 304 862 165 729 367 430 585 378 524 605 (415,132) (292,840) (131,426) (235,471) (190,445) (18,326) 492 856 79,008 227 669 146,881 194 285 53,600 96 508 (261,588) (34,279) 66 245 99,907 4 214 619 (1,200,111) Urea - Qualifying Urea - Qualifying Increase (Decrease) 119,165 141 672 90,822 147 526 90,049 116 702 40,260 61 508 117,643 156 506 117,401 125132 78,602 78 517 (21,248) (115,334) (38,863) 120,649 91 251 29,398 1,028,737 1 291 813 (26,653) 76,899 73 449 3,451 61,491 78 376 (56,704) 51,678 41 764 9,914 64,078 179 412 (22,507) 771,522 1 324 320 198,393 864 067 274,060 630 642 712,964 223 311 489,652 10,580,495 12 504 753 (1,924,259) Test Year Prior Year 0502040 0502040 COST OF LIME COST OF LIME Increase (Decrease) Test Year Prior Year 0502070 0502070 Gypsum - Qualifying Gypsum - Qualifying Increase (Decrease) 208,959 38,886 (1 282 237) 1,321,122 118,259 118 259 236,519 265 (265) 303,373 262,345 12 032 985 (11, 770,640) 118 259 118,259 (49,456) 409,312 450 291 827,941 375 877 452,064 8,073 31 948 662,453 1 470 409 34,303 131,959 456,390 1 204 088 1,147,165 1 641 741 (552,799) (807,956) (665,674) (356,582) (747,698) (494,575) 29,103 (235 945) 265,048 (116,797) (118,440) (213,763) (159,904) (43,933) (13145) 172 807 (103,651) (291,247) 1,672,265 1617271 54,993 (3,102) (7,731) 1,779,506 1 546 092 233,415 (5 758) (36 269) 41 726 58 713 16,052 53 836 (208,004) (123,635) (85,659) (61,815) (37,784) 1,440,275 877 123 563,153 (16,885) 991,475 577 757 413,718 85 474,027 527 932 (53,905) (263,076) (73,981) (101,099) (65,108) (45,138) (896,110) (43 935) (162 386) 61,287 (40 290) (62 038) 16,900 (272 684) (30,046) (24,818) (623,426) DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For The Test Year Ended December 31, 2016 And The Twelve Months Ended December 31, 2015 ltemNo.12A COMPARISON OF TEST YEAR ACCOUNT BALANCES WITH THOSE OF PRECEDING YEAR ELECTRIC OPERATING EXPENSE ACCOUNTS Total For 12 Months Account Number & Description Test Year Prior Year Test Year Prior Year 0502080 0502080 0502082 0502082 Mag Hydroxide Qualifying Reag Mag Hydroxide Qualifying Reag Increase (Decrease) 87,743 250 571 (162,828) 194,211 408 877 (214,667) 97,459 237 717 (140,259) 34,124 133 215 (99,091) 111,393 254 553 (143,160) 253,092 402 517 (149,424) 368,006 501 576 (133,570) 440,563 606 583 (166,019) 382,514 270 734 226,425 172 817 111,781 53,608 Calcium Carbonate Calcium Carbonate Increase (Decrease) 41,577 139 579 (98,002) 115,842 209 811 (93,970) 54,389 112 999 (58,611) 23,433 85 482 (62,049) 65,969 116 071 (50,102) 139,342 160 342 (21,000) 200,877 266 889 (66,012) 248,447 297 542 (49,095) 193,867 157 731 Test Year Prior Year 0502100 0502100 Fossil Steam Exp-other Fossil Steam Exp-other Increase (Decrease) 478,418 521 003 (42,585) 493,118 641 955 (148,837) 508,647 684 925 (176,278) 532,467 623 138 (90,672) 459,196 919 481 (460,285) 473,357 610 923 (137,566) 513,362 799151 (285,788) 443,472 755 297 (311,825) Reagent Synergy Savings Reagent Synergy Savings Increase (Decrease) (11,636) 26 217 (37,853) 18,729 43 919 (25,190) (39,555) (9 861) (29,694) (33,944) (5 310) (28,634) (307,865) (5 923) (301,942) (6,647) (30 499) 7,554 225 562 (218,008) 84,815 189 535 (104,720) 46,669 134 493 (87,824) 16,750 199 724 (182,975) (33,527) 141 734 (175,260) (14,528) 134 029 (148,557) (8,615) 308 501 (317,116) Test Year Prior Year Test Year Prior Year Test Year Prior Year Test Year Prior Year 0502161 0502161 0504000 0504000 0505000 0505000 0506000 0506000 By-Product Synergy Savings By-Product Synergy Savings Increase (Decrease) Steam Transferred-Credit Steam Transferred-Credit Increase (Decrease) Electric Expenses-Steam Oper Electric Expenses-Steam Oper Increase (Decrease) Misc Fossil Power Expenses Misc Fossil Power Expenses Increase (Decrease) Test Year Prior Year 0506300 0506300 Misc Fossil Power Expenses - R Misc Fossil Power Expenses - R Increase (Decrease) Test Year Prior Year 0509030 0509030 S02 Emission Expense S02 Emission Expense Increase (Decrease) Test Year Prior Year 0509212 0509212 Annual NOx Emission Expense Annual NOx Emission Expense Increase (Decrease) Test Year Prior Year 0510000 0510000 Suprvsn and Engrng-Steam Maint Suprvsn and Engrng-Steam Maint Increase (Decrease) Test Year Prior Year 0510100 0510100 Suprvsn & Engrng-Steam Maint R Suprvsn & Engrng-Steam Maint R Increase (Decrease) Test Year Prior Year 0511000 0511000 Maint Of Structures-Steam Maint Of Structures-Steam Increase (Decrease) Test Year Prior Year 0511200 0511200 Maint Of Structures-Steam - Re Maint Of Structures-Steam - Re Increase (Decrease) Test Year Prior Year Test Year Prior Year 0512100 0512100 0512300 0512300 Maint Of Boiler Plant-other Maint Of Boiler Plant-other Increase (Decrease) Maint Of Boiler Plant oth-Rec Maint Of Boiler Plant oth-Rec 82,690 4153 (4,153) (213) 96103 (96,317) 83 87 517 (87,434) 1 909 1,909 1,043 82 994 (81,951) 4,179 90 768 (86,589) 2,432 131 314 (128,882) (1,115,851) 2 550 899 (1,636,070) 596 017 124,183 1 689 535 (2,232,088) (1,565,353) 2,593,862 2 962 159 (368,297) (3,666, 750) (28,238) 1 396 249 (1,424,487) 14 511 (14,511) 4,960 16 840 (11,880) 4,546 5 861 (1,315) 843 4 083 (3,240) 1,161 7 011 (5,850) 23,853 117,168 36,136 109,949 116 871 (6,921) 55,118 85 924 (30,806) 26,887 1,306,928 1 780 472 (473,544) 481,040 922 315 (441,275) 400,011 752 227 (352,216) 440,967 570 372 (129,405) 450,907 570 063 (119,156) (2,695,887) 18,415 17 698 716 (5,726) (36 411) (56133) (44 351) (28 500) 30,685 56,133 44,351 28,500 (360,676) 96 408 (457,084) 36,445 (1 875 200) 75,867 34 972 45 719 (45,719) (21 648) 211,991 (715 262) 40,895 8,115 18 763 (10,648) (25 885) 1,911,645 21,648 927,253 25,885 58,118 31 231 1,248,136 525 364 722,773 2,876 114 279 (111,403) 200 33 306 (33,106) (370,042) (834 984) 1,111,915 1 552 691 (440,776) 464,942 970 (1 616) 2,585 14,456 16117 (1,660) 1,524 2 004 (480) 1,633,249 4 140 636 96,110 2 175 065 1,298,172 2 577 109 (2,507 ,386) (2,078,955) (1,278,937) 52,538 1 315 51,223 2,190,212 1 806 203 9,189 12 988 (3,798) 814,365 1 041 558 (227,193) 576,914 886 044 (309,130) 1,907 1 447 480 63,963 102 668 (38,704) (3) 14,791 12 230 14,149 5 450 5,958 4 940 2,561 8,699 1,018 3,861 3156 705 242,904 501 699 (258,795) 242,904 508,005 892 949 (384,944) 726,209 942 491 (216,282) 538,285 913 674 (375,389) 527,209 890 242 (363,033) 7,145,638 21136943 (13,991,305) 242,904 501 699 (501,699) 84,862 744 519 (659,657) 384,009 (3) 2,599 14152 (11,553) 5,674,962 8 370 849 3 478 (3,478) 1 234 (1,234) 4,773 90 416 (85,643) 2,433,109 3 413 731 (980,622) 117,168 117,168 0502090 0502090 0502160 0502160 128,580 45 889 117,168 Re-emission Chem Exp - Reagent Re-emission Chem Exp - Reagent Increase (Decrease) Test Year Prior Year Test Year Prior Year 108,999 128 682 (19,683) 479,522 1 047 938 (568,416) 481,211 951 706 (470,495) 520,175 1 348 913 (828,738) 610,621 1 448 918 (838,297) 456,320 1 430 061 (973,740) 417,013 566 969 (149,956) 6,655,849 12 361 462 (5,705,614) 9,083 7,165 12,418 10,383 1 285 10,789 5 764 13,328 6 804 13,451 10 566 18,834 3 216 21,575 3198 17,802 2 359 25,146 3 793 28,223 5 600 9,083 7,165 12,418 9,098 5,025 6,524 2,886 15,618 18,377 15,443 21,353 22,622 145,612 (252,420) 3 333 009 51,780 3 331 542 2,408,608 668 029 700,546 3 093 749 1,024,153 (4 279 770) 747,865 (1 367 974) 418,358 222 068 722,876 2 757 963 (567,184) 5 222 174 1,770,393 (2 496 140) 1,928,149 5 629 467 9,413,362 16793567 (3,585,429) (3,279, 762) 1,740,579 (2,393,203) 5,303,923 2,115,839 196,290 (2,035,087) (5, 789,358) 4,266,533 (3,701,318) (7 ,380,205) 460,238 679 450 (219,212) 342 29 (29) 342 3,925,018 1 918 489 3,486,536 2 203 553 3,888,601 3 824 643 4,862,129 4 572 412 2,006,530 1,282,983 63,958 289,717 2,268,161 4 998 091 (2, 729,930) 2,986,512 3 659 085 (672,573) 2,882,320 1 236 933 2,612,412 2 453 749 5,100,153 3 955 218 1,645,387 158,663 1,144,935 308 (4) 4,152,324 4 647 055 (494,731) 2,867,466 5 046 094 4,483,973 6 264 877 (2, 178,628) (1,780,903) 188,199 42 587 342 29 313 43,515,606 44780198 (1,264,592) 304 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For The Test Year Ended December 31, 2016 And The Twelve Months Ended December 31, 2015 ltemNo.12A COMPARISON OF TEST YEAR ACCOUNT BALANCES WITH THOSE OF PRECEDING YEAR ELECTRIC OPERATING EXPENSE ACCOUNTS Total For 12 Account Number & Description Increase (Decrease) Test Year Prior Year 0513100 0513100 Maint Of Electric Plant-other Maint Of Electric Plant-other Increase (Decrease) Test Year Prior Year 0514000 0514000 Maintenance - Misc Steam Plant Maintenance - Misc Steam Plant Increase (Decrease) Test Year Prior Year Test Year Prior Year Test Year Prior Year Test Year Prior Year Test Year Prior Year Test Year Prior Year Test Year Prior Year Test Year Prior Year Test Year Prior Year Test Year Prior Year Test Year Prior Year 0514300 0514300 0517000 0517000 0517001 0517001 0518100 0518100 0518500 0518500 0518510 0518510 0518530 0518530 0518610 0518610 0518611 0518611 0518620 0518620 0518700 0518700 Maintenance - Misc Steam Plant Maintenance - Misc Steam Plant Increase (Decrease) Supervsn and Engnring-Nuc Oper Supervsn and Engnring-Nuc Oper Increase (Decrease) January February 622,191 353 716 268,474 280,255 562 873 620,990 398 805 222,185 691,333 478 120 213,213 961 1,749 1,541 2,507 961 1,749 1,541 2,366 3,260,350 2 963 981 296,369 3,290,904 2 771 340 519,564 3,942,195 3 302 589 639,606 3,925,951 3171 510 754,441 2 880 466 466 (282,618) 17,325,851 15 079 628 2,246,223 14,855,532 12 471 095 2,384,437 1,305,459 885 354 420,105 June 530,269 624 147 436 576 561,541 716 333 445,401 1 379 875 (488,059) (154,792) (51,484) August Seetember October 13,385,668 11247689 2,137,979 16,851,764 9 752 181 7,099,583 (93,878) (934,474) 452 419,204 1410061 (990,857) 821,240 516 487 304,753 437 (310,837) 419,702 1 210 758 (791,056) 891 (143,420) 523,819 987 232 (463,412) 277 705,121 5 084 142 (4,379,021) 455,804 1617891 (1,162,087) 56 1 817 1 757 10,378 25183 (1,578) (1,639) (14,806) 3,620,011 3 388 013 231,998 3,795,846 3119 618 676,228 3,891,816 2 993 255 898,561 4,132,990 3 415 816 717,174 4,270,684 3 651 075 619,608 3,775,643 4 162 334 (386,691) 17,549,870 10 749 668 6,800,201 17,018,469 11707776 5,310,694 (3,853) 173 (4,026) 17,597,643 15 223 978 2,373,665 16,749,397 17 635 986 (886,589) (639,556) 13,033,578 17 324 461 (4,290,883) (1,056) 27,942 22,771 69 749 27,942 (46,977) 47,160 51 462 (4,302) 162,427 26 555 135,872 (3,086) (3,086) (3,086) (3,086) (3,086) (3,086) (3 086) (3 086) (3 086) (3 086) (3 086) (3 086) Canister Expense-Mcguire Bruns Canister Expense-Mcguire Bruns Increase (Decrease) 58,817 58,817 58,817 125,224 125,224 125,224 125,224 125,224 125,224 125,224 368 594 58,817 58,817 58,817 125,224 125,224 125,224 125,224 125,224 125,224 (243,370) Canister Design Expense Canister Design Expense Increase (Decrease) 30,138 39,597 24,256 44,490 20,006 30,029 5,258 4,435 92 480 39,597 24,256 44,490 20,006 30,029 5,258 12,475 2 723 9,752 20,143 74 009 30,138 (53,865) (88,044) 24 Month Fuel Cycle 24 Month Fuel Cycle Increase (Decrease) 78,338 43 686 34,652 47,670 95 865 69,052 95 822 50,872 117 667 43,406 92 471 81,378 111 932 60,648 94 848 (26,770) (66,795) (49,065) (30,554) (34,200) 102,784 65 603 37,181 23,800 125 658 (48,195) (101,858) Test Year Prior Year 0523000 0523000 Electric Expenses Electric Expenses Increase (Decrease) 467,030 514 881 476,890 496 309 (47,851) (19,418) 16,011,742 16 432 581 (420,839) 49 (641,527) (881,633) 491,655 (1 066 549) 1,558,204 279,526 4,566,216 5 006 412 (434,582) 3,368,887 4 237 990 (440,195) (869,103) 613,960 502 673 111,286 486,912 545 507 11,432,966 13 991 446 15,234,085 12 307 003 2,927,082 14,633,146 13 291 058 1,342,088 10,956,498 11624287 49 49 49 (667,789) (58,595) (2,558,481) 49 (125,351) 196,415,200 170 948 847 25,466,353 (1,056) (3,086) 1,770,711 1 896 061 20,412,766 17 697 268 2,715,498 (3,817) 81 537 1,511,703 1 946 285 15,273,933 15 058 832 215,101 70 479 (84,623) (344,407) 44,785,075 39 954 828 4,830,246 (74,297) 81 537 4,927,314 5 808 946 (38,089) 34 34 (84,623) 52,129 3,631,649 3 669 738 36 90 368 (90,332) 10 466 (10,466) 16,360,729 17 000 285 81 537 3,869,269 4 510 796 (98,523) 2 414 1,853 359,104 3,247,036 3 345 558 (2,414) (2,253) 3,308,530 2 861 699 446,831 118 1 892 (1,836) (46,518) Steam Expenses-Nuc Oper Steam Expenses-Nuc Oper Increase (Decrease) 239 2 311 (2,034) 47,396 0520000 0520000 6,142,474 11265275 (5, 122,800) (650,572) 4 027 1,853 Test Year Prior Year 952,184 1 602 756 (935,880) (3,136) 2,321 4 574 1,952,661 1673135 421,689 1 357 569 2114 12,717 59 236 1,616,752 1 961159 9,787,139 16 556 954 (6,769,815) (1,677) 47,396 1,740,268 1688139 (1,483,861) 949,828 1 968 400 (1,018,572) 8 037 1,056 (3,086) 1,027,289 2 491149 (7,585) 1,056 (3,086) Months 1,149 3 086 20 028 20,028 16,125 1 973 14,152 1,124,245 1 267 665 (84,623) Misc Exp Nuc - NC December (304) 265,076 575 713 Canister Expense-Oconee Robins Canister Expense-Oconee Robins Increase (Decrease) Misc Expenses-Nuc Oper Misc Expenses-Nuc Oper Increase (Decrease) November (1,937) Oil In Aux Stm Gen Fac-Nuc Opr Oil In Aux Stm Gen Fac-Nuc Opr Increase (Decrease) Diesel Unit Oil Cons-Nuc Oper Diesel Unit Oil Cons-Nuc Oper Increase (Decrease) July 1,502,385 482 777 1,019,608 Nuclear Fuel Synergy Savings Nuclear Fuel Synergy Savings Increase (Decrease) 1,434,795 1 075 691 0524001 (1,011,481) (2,880) Coolants And Water-Nuc Oper Coolants And Water-Nuc Oper Increase (Decrease) Test Year 512,498 1 523 979 141 0519000 0519000 0524000 0524000 May 823,574 (110 149) 933,724 Test Year Prior Year Test Year Prior Year April (308) Sup & Engineer- NC Sup & Engineer- NC Increase (Decrease) Burnup Of Owned Fuel Burnup Of Owned Fuel Increase (Decrease) March 1,599,213 1 323 236 275,977 1,769,556 1 803 717 (34,161) 5,062,883 3 490 640 1,572,243 3,230,060 3 595 314 (365,254) (126,303) 499,994 487 546 12,448 474,349 436 204 38,144 477,275 521 369 14,519,023 13320994 1,198,029 14,760,846 15 379 780 49 49 (618,934) 3,557,593 3 683 896 (44,094) 13,540,221 18792726 (5,252,506) 66 1,999,033 1 538 747 35,928 (3 086) 39,014 145,016 35,928 (3 086) 39,014 80,005 216 832 (136,827) 8,665 (10 226) 18,891 11,247 4 578 6,669 250,740 163 564 87,175 53,527 124191 (108,562) (258,484) 261,630 66 842 194,788 764,543 1184 508 (70,665) 1,893,533 2 189 185 20,399,547 20 188 412 1,510,068 1 393 048 117,019 4,651,043 4 709 619 603,938 549 199 54,739 544,932 541 663 3,269 (58,576) 13,479,022 16 198 599 (2,719,577) 49 125,224 58 817 66,407 35,928 (3 086) 39,014 501,628 239 022 262,606 1,303,467 486 228 817,239 460,286 49 145,016 892 125,224 58 817 66,407 4,807,346 3 990 455 816,891 14,167,901 15224114 (1,056,213) 15,899 15 007 149 923 1,601,253 1 700 008 (98,755) (295,652) (419,965) 211,134 4,971,474 3 807 099 1,164,375 4,051,690 4 018 199 33,490 50,372,305 49 721 067 651,238 471,591 485 817 525,182 489 386 35,796 6,133,709 4 504 006 1,629,703 (14,226) 14,561,499 16 008 856 (1,447,356) 49 17,676,683 17098220 578,463 49 170,973,633 179 669 665 (8,696,032) 610 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For The Test Year Ended December 31, 2016 And The Twelve Months Ended December 31, 2015 ltemNo.12A COMPARISON OF TEST YEAR ACCOUNT BALANCES WITH THOSE OF PRECEDING YEAR ELECTRIC OPERATING EXPENSE ACCOUNTS Total For 12 Time Period Prior Year Test Year Prior Year Test Year Prior Year Test Year Prior Year Test Year Prior Year Test Year Prior Year Test Year Prior Year Test Year Prior Year Test Year Prior Year Test Year Prior Year Test Year Prior Year 0524001 0524002 0524002 0528000 0528000 0529000 0529000 0530000 0530000 0530002 0530002 0531100 0531100 0532100 0532100 0532101 0532101 0532102 0532102 0535000 0535000 Account Number & Description Misc Exp Nuc - NC Increase (Decrease) 0539000 0539000 49 49 September 49 17 5,853,991 7 766 038 (1,912,047) 4,345,629 7 233 424 (2,887' 795) 7,430,302 7 325 219 105,083 5,234,560 5 282 894 Maintenance Of Structures-Nuc Maintenance Of Structures-Nuc Increase (Decrease) 1,916,762 1 969 752 1,605,095 2 743 756 (1,138,662) 1,932,568 2 047 671 (52,990) (115,103) 874,519 4 429 896 (3,555,377) 1,527,710 2 789 578 (1,261,868) 2,075,613 (1 343 755) 3,419,368 Maint Of Reactor Pit Equip-Nuc Maint Of Reactor Pit Equip-Nuc Increase (Decrease) 6,099,312 8 216 819 (2, 117,507) 6,817,980 9643118 (2,825, 138) 8,017,249 10 776 504 (2, 759,255) 6,925,009 14 591 235 (7 ,666,225) 3,526,077 10 610 592 (7,084,515) 6,286,623 10 016 137 (3,729,514) Main Reactor Pit Eq Nuc - SC Main Reactor Pit Eq Nuc - SC Increase (Decrease) October 687 80 80 80 80 80 60 60 60 60 60 3,579,443 5 031 959 80 1 905 (1,625) November 49 December 49 (636) Months 7 639 (7,029) 22 553 2 255 24 808 (22,553) (2,255) (24,606) 4,258,353 7 228 263 (2,969,910) 72,169,715 79 389 689 (7,219,974) 5,601,084 7 386 041 (1,784,957) 5,465,632 7 022 175 (1,556,543) 6,866,975 6 852 611 14,364 5,614,207 5 989 190 2,230,700 2 019 358 211,342 1,704,008 2 054 442 1,827,149 1385143 442,005 4,009,013 1 789 632 2,219,381 1,986,628 1 678 442 308,185 4,025,911 1 339 666 2,686,245 25,715,675 22 903 584 2,812,091 2,645,155 5161118 (2,515,963) 4,563,577 3 924 874 638,703 5,823,416 6 668 535 7,454,917 6 018 423 1,436,494 4,532,117 5 403 252 4,732,732 5 824 874 (1,092,142) 67,424,165 96 855 480 (29,431,315) 80 80 80 80 (46,334) 80 430 (350) (350,435) 80 189 (110) (645,119) 80 195 (116) (374,963) (671,134) 80 80 956 2 958 (2,002) Maint Electric Plt-other-Nuc Maint Electric Plt-other-Nuc Increase (Decrease) 2,645,028 3 784 344 (1,139,315) (1,452,517) 5,788,413 5 234 295 554,118 2,926,005 5 540 796 (2,614,791) 3,003,348 4 186 818 (1,183,470) 6,266,911 4 445 262 1,821,649 3,675,774 2 175 917 1,499,857 3,515,229 1 894 565 1,620,664 4,670,373 3 240 846 1,429,527 4,627,990 2 907 697 1,720,293 3,410,557 5 449 898 (2,039,341) 4,700,913 2 682 448 2,018,465 48,809,983 46 574 844 2,235,139 Maint Misc Nuclear Pit-other Maint Misc Nuclear Pit-other Increase (Decrease) 3,954,346 6 981 488 (3,027' 143) 4,921,565 8 279 593 (3,358,028) 6,965,672 6 213 835 751,837 4,266,890 5 140 510 5,228,148 7 462 015 (2,233,867) 4,204,189 5 592 266 (1,388,077) 4,951,300 4 570 091 381,209 4,172,942 6 047 672 (1,874,730) 4,992,052 4 184 089 807,963 5,950,888 5 465 935 484,952 4,889,809 5 082 748 6,713,403 4 953 704 1,759,698 61,211,202 69 973 947 (8,762,745) (673,620) 56 (56) 60 Main Misc Nuc Pit - SC Main Misc Nuc Pit - SC Increase (Decrease) Supervsn and Engrng-Hydro Oper Supervsn and Engrng-Hydro Oper Increase (Decrease) 1 318 (1,316) 366 (366) 104,367 86 887 17,480 71,250 70 015 1,235 134,211 94 523 39,688 133,295 112 310 20,986 500,817 77 468 423,349 87,934 70 992 16,942 5,208 5 208 5,208 5 208 5,208 5 208 5,208 5 208 5,208 5 208 5,208 5 208 6 6 40 4115 3 593 3 850 4 232 7,326 10 440 (4,109) (3,566) (3,610) (4,232) (3,114) 130,006 46 591 83,415 (6,594) 2,099 (10 189) 12,289 3,671 2 465 1,206 10,263 3 783 6,480 (20,375) (325,421) (22 380) 2,005 (324 439) Recreation Expenses-Hydro Recreation Expenses-Hydro Increase (Decrease) (36149) 29,555 Electric Expenses-other-Hydro Electric Expenses-other-Hydro Increase (Decrease) 7,513 6,812 6,397 6,607 6,353 6,181 58 845 (51,333) 40 613 (33,801) 58 885 (52,467) 64 996 (58,368) 67 554 (61,201) 58 708 (52,527) 33,630 30 997 2,633 34,707 47 868 44,961 82 364 32,201 49 746 33,846 71 828 (13,161) (37,403) (17,545) (37,962) Misc Hydraulic Expenses Misc Hydraulic Expenses Increase (Decrease) Test Year Prior Year 0540000 0540000 Rents-Hydro Oper Rents-Hydro Oper Increase (Decrease) Test Year Prior Year 0541000 0541000 Suprvsn and Engrng-Hydro Maint Suprvsn and Engrng-Hydro Maint Increase (Decrease) (192,940) 80 Main Misc Nuc Pit - NC Main Misc Nuc Pit - NC Increase (Decrease) Hydraulic Expenses Hydraulic Expenses Increase (Decrease) Test Year Prior Year 49 189 (140) 8,810,652 7 724 668 1,085,983 0537100 0537100 0538100 (5,036) 190 (141) 6,222,630 5 725 285 497,346 Test Year Prior Year 0538100 (1,166) August June fil!d.! 6,465,700 3 853 881 2,611,819 Water for power Water for power Increase (Decrease) Test Year Prior Year 49 March 5 088 Maint Suprvsn and Enginrng-Nuc Maint Suprvsn and Enginrng-Nuc Increase (Decrease) 0536000 0536000 0537400 0537400 Februarv 1 237 Misc Exp Nuc - SC Misc Exp Nuc - SC Increase (Decrease) Test Year Prior Year Test Year Prior Year Januarv (963) 609 (609) 108,703 74 372 34,332 79,028 83 936 (4,906) 89,787 78 474 11,313 5,208 5 208 5,208 5 208 5,208 5 208 5,208 5 208 72 802 17 6 11 11 149,339 491 641 (342,302) (72,602) 1,642 (25 918) 27,559 3,829 (32164) 35,992 84,705 214 289 (129,564) 5,208 5 208 11 (335) (7 770) 7,435 11 (11) (4,870) 10 (4,860) 2 293 (2,293) 268,742 204 593 64,148 1,812,177 1 659 500 152,677 5,208 5 208 62,500 62 500 11 137,421 145 639 11 19,648 28198 (6,349) (6,549) 16,318 28 693 14,700 25 539 (12,375) (10,639) 17,620 26 608 (6,966) (6,216) (21,602) (3,452) (361,146) (1 865) (1 897) (19,737) (1,555) (456 512) 95,367 8,087 9,573 8,002 7,558 8,737 91,095 110 799 (101,525) 31121 (23,034) 6 491 25 829 (17,827) 10 386 (2,829) 5 951 3,082 540 179 (449,064) 32,762 69 595 39,405 77 593 443,701 504 498 23,875 63 666 36,372 37 358 (36,633) (36,166) (60,797) (39,791) 9,273 (965) 2,786 10,915 65 709 23,524 54 899 (54,794) (31,376) 667 (667) 23,642 31 990 80 56 24 16,158 30 506 17,850 37 820 (14,346) (19,970) 20,416 27 634 (7,216) 18,737 31 963 18,864 30 336 (13,226) (11,472) 789,899 1156120 (366,221) 667 (667) 16,642 26 322 17,413 24 606 (9,660) (7,193) 218,008 350 216 (132,206) DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For The Test Year Ended December 31, 2016 And The Twelve Months Ended December 31, 2015 ltemNo.12A COMPARISON OF TEST YEAR ACCOUNT BALANCES WITH THOSE OF PRECEDING YEAR ELECTRIC OPERATING EXPENSE ACCOUNTS Total For 12 Time Period Test Year Prior Year Test Year Prior Year Test Year Prior Year 0542000 0542000 0543000 0543000 0544000 0544000 Account Number & Description Maint Of Structures-Hydro Maint Of Structures-Hydro Increase (Decrease) Januarv 17,288 17 750 (461) (2,858) Februarv 9,614 32 004 (22,391) 82,824 23 833 58,991 March 24,777 16 063 8,714 62,325 19 674 42,651 fil!d.! 102,019 22 315 79,704 _M_., (80,691) 17 264 June 29,363 33 934 (97,955) (4,571) 97,152 62 653 34,498 52,524 134 088 (61,564) 66,791 48109 18,683 August 43,296 6 760 36,537 September 45,123 2 694 42,429 (416,459) 140,557 71 336 69,221 271,042 93 952 177,090 22,369 25 716 57,916 27 201 30,715 18,309 18 533 4!!h'. 22,013 14148 7,865 Maint-Reservoir,Dam & Waterway Maint-Reservoir,Dam & Waterway Increase (Decrease) (22 934) 20,076 36,110 454 569 Maint Of Electric Plant-Hydro Maint Of Electric Plant-Hydro Increase (Decrease) 17,580 30 452 18,721 30 089 24,718 55140 50,877 61 331 48,567 59147 (11,366) (30,423) (10,455) 47,415 27 362 20,054 38,030 85 274 (12,672) (47,244) (10,560) (3,346) Test Year Prior Year 0545100 0545100 Maint-Misc Hydraulic Plant Maint-Misc Hydraulic Plant Increase (Decrease) 118,649 25 051 93,599 169,017 (159 593) 328,610 195,501 119171 76,330 153,318 134 437 18,881 133,821 64 261 69,560 137,462 135 011 2,452 271,701 45 072 226,629 334,616 199 649 134,967 134,623 181 325 Test Year Prior Year 0545400 0545400 Recreation Facilities-Hydro Recreation Facilities-Hydro Increase (Decrease) 211 220 19 197 (177) 4,328 1,389 3 956 1,353 1 472 1,635 1 498 1,353 4 401 1,372 1 495 1,354 1 478 Test Year Prior Year 0546000 0546000 Suprvsn and Enginring-CT Oper Suprvsn and Enginring-CT Oper Increase (Decrease) Test Year Prior Year 0547000 0547000 Fuel Expense-CT Fuel Expense-CT Increase (Decrease) Test Year Prior Year 0547123 0547123 Gas Capacity - lntercompany Gas Capacity - lntercompany Increase (Decrease) Test Year Prior Year Test Year Prior Year Test Year Prior Year Test Year Prior Year 0547127 0547127 0547150 0547150 0547200 0547200 0547300 0547300 Gas Desk Savings Gas Desk Savings Increase (Decrease) Natural Gas Handling-CT Natural Gas Handling-CT Increase (Decrease) Oil Oil Increase (Decrease) (9) 387,734 359 564 28,169 372,980 509 034 387 3,941 389,101 502 967 (2,567) 435,382 498 277 (62,695) (232,396) (141,960) (193,954) 48,836,295 56 147 812 (7,311,518) 53,270,597 61 385 368 (8,114,771) 51,966,245 65 085 915 (13, 119,670) 64,670,880 66 440 412 (1,769,533) (1,803,307) (2 507 138) 703,831 (1,654,369) (2 245 988) 591,619 (1,868,294) (2 159 089) 290,796 (52,667) (68,405) (71,811) (76,189) (69,251) (69,334) (73 805) 21,138 (16 329) (15 919) (11 250) (9 463) (10 773) (52,077) (55,691) (64,939) (59,767) (56,561) 40,653 61 711 51,313 36 317 14,995 40,832 41 852 (21,059) 765 46,537 36 874 9,663 48,080 46 974 1,106 49,844 34 353 15,491 57,592 37 028 20,564 51,268 39 253 12,015 336,309 119 834 216,475 53,975 463 429 84,960 30 495 54,465 14,075 81 231 (409,454) (67,156) 306,624 164 648 141,975 7,170 2 302 4,868 (17,233) 466 1,065 24 296 1,907 21 848 3,718 34 237 14 460 9 392 (23,232) (19,941) (30,519) (14,093) (6,926) 29,744 36 556 28,081 13102 14,979 13,489 12 007 1,482 3,367 11 727 33,530 56 393 (6,361) 59,108 73 725 (14,617) 177,937 258 849 239 674 290 612 258 869 (68,699) (67,578) 0552000 0552000 240 (6,303) (142,709) (60,932) 19,927 27 483 (22,663) 30,371 27 746 2,626 74,726 71 453 3,272 62,080 54 006 8,075 163,322 161,191 295 038 227 277 (131,716) (66,066) 338 4 720 (4,361) 555 17 788 177,138 1 699 942 (1,522,803) 4,320 2 688 1,633 15,641 27 795 3,021 15 609 17,524 27 927 (7,555) 19,205 11 900 7,305 (12,153) (12,566) (10,403) 81,294 61 430 19,865 91,106 56 310 34,796 78,539 55 099 23,440 60,587 65 729 65,386 65190 150,664 176,619 166,248 152,620 308 332 274 551 259 710 338 393 241117 (97,932) (93,462) (157,668) 1,043,129 778 465 264,664 1,462,045 663 633 798,412 959,178 827 614 131,565 (177,811) 801,125 714 556 86,570 1,122,789 704 841 417,948 Suprvsn and Enginring-CT Maint Suprvsn and Enginring-CT Maint Increase (Decrease) 330,137 374 943 321,510 388 106 319,360 408 453 322,556 417 852 383,883 401 771 366,132 396 305 (44,806) (66,596) (69,093) (95,296) (17,869) (30,173) Maintenance Of Structures-CT Maintenance Of Structures-CT Increase (Decrease) 302,454 54 937 247,517 169,123 205 444 352,442 180 579 171,863 246,029 419 489 168,073 690 229 322,123 440 427 146,505 504 838 (173,460) (522,156) (118,304) (358,333) (36,321) 658,911 836 722 464 (42 027) 42,491 334,737 400 918 1,327,465 906 394 421,071 834,564 1 720 597 353,820 455 504 354,547 405 256 (101,663) (886,033) (50,709) 216,367 237 829 (21,461) 286,085 392 077 1,012,258 880 823 131,435 (105,992) (3,661) 4,459,099 5 993 988 (1,534,889) 676,295,933 831 628 363 (155,332,431) (129,570) 127 6,767 13 071 147,903 325,828 508 780 576,304 473 560 102,744 43,268 40 635 2,634 172,096 17,093 20 775 (1,366) 50,495 35 411 15,084 42,521 22 917 19,604 170,150 1,364 2 750 (67) 53,901 40 234 13,667 (13,911) (14 696) Prime Movers - Generators- CT Prime Movers - Generators- CT Increase (Decrease) 1,356 1 444 (116) (170 504) 40,934 (13,906) (14146) 0548200 1,359 1 477 (40,444) (14 840) 14,840 (13,722) (13 849) (1,069) Test Year Prior Year 2,217,810 1 248 246 969,565 (13 873) 13,873 (14,147) (13 058) (1,526) 62,846 58145 4,701 197,432 190 469 6,963 (14 696) 14,696 (15,111) 61,003 48 007 12,996 138,345 105 695 32,650 (5,733,627) (10 566 662) 4,833,035 (13 583) (6,611) 233,324 207 698 25,626 (1 823 665) 1,823,665 (1,444) 115,075 44 844 70,231 456,821 497 265 (1 682 240) 1,682,240 (15,135) 366 64,599 61172 3,427 (11 001) 11,001 (13 691) 64,880 450 083 47,721 15 848 31,873 (224) 62,529,687 56 667 689 5,861,998 (1,346) (365,203) 1,439,806 1190 676 249,129 (66,161) (15,202) 205,349 101 636 103,713 319,431 303 428 16,003 53,529,656 58 169 369 (4,639,713) (13 854) 261,565 198 863 62,702 (91,193) 140,978 (262 156) 403,133 331,428 232 968 98,460 (162,952) 259 2,171,227 32 579 351 (30,408, 124) 172,931 264 124 (11,771) 43,556,597 51250124 (7 ,693,527) (14,309) 3,170,720 9 567 267 (6,396,547) December 67,719 11 088 56,631 (165,577) (14 569) (1,020) Months November 17,217 13 489 3,728 51,890,327 61 653 583 (9, 763,257) (14,127) Generation Expenses-other CT Generation Expenses-other CT Increase (Decrease) Test Year Prior Year 64,554,144 64 342 681 211,463 (15 649) 1,523 0548100 0548100 0551000 0551000 (141,229) 367,287 552 863 (113,666) Test Year Prior Year Test Year Prior Year 395,461 536 690 (124) 55,799,198 74 452 942 (18,653,743) Fuel Handling and Testing-CT Fuel Handling and Testing-CT Increase (Decrease) Misc-Power Generation Expenses Misc-Power Generation Expenses Increase (Decrease) 389,670 583 624 (123) (136,055) Ammonia - Qualifying Ammonia - Qualifying Increase (Decrease) 0549000 0549000 409,612 551 572 (3,046) 61,089,119 129 915 343 (68,826,224) 0548020 0548020 Test Year Prior Year 365,224 597 622 137 64,603,188 86117123 (21,513,935) Test Year Prior Year 0548200 (119) (46,702) October 33,688 45 459 (5,143) (59,323) 196 147,150 208,622 1,994,521 184 657 23,965 3 177 080 (1,182,559) 1,821,808 1 298 421 523,387 13,150,559 15 031 798 (1,881,239) (2,050,434) 285,874 270 848 15,026 817,349 468 495 348,854 (76,010) 231,516 290 839 872,035 691 629 180,406 1,180,550 2 722 562 (1,542,012) (33,513) 17,614 22 595 27,344 103 354 (4,961) (93,967) 369,630 403 143 208 582 (374) 8,953,836 45 500 140 (36,546,305) 60,285 37 691 22,594 (165,774) 377,233 374 520 2,713 2,107,014 43 360 2,063,653 926,737 2 977 171 434,291 350 706 83,585 350,281 376 379 2,761,476 175 038 2,586,438 1,982,838 634 362 1,348,477 (26,098) 4,283,381 4 752 939 (469,558) 7,770,653 4 282 513 3,488,140 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For The Test Year Ended December 31, 2016 And The Twelve Months Ended December 31, 2015 ltemNo.12A COMPARISON OF TEST YEAR ACCOUNT BALANCES WITH THOSE OF PRECEDING YEAR ELECTRIC OPERATING EXPENSE ACCOUNTS Total For 12 Months Account Number & Description Test Year Prior Year 0553000 0553000 Maint-Gentg and Elect Equip-CT Maint-Gentg and Elect Equip-CT Test Year Prior Year 0554000 0554000 Misc Power Generation Plant-CT Misc Power Generation Plant-CT Increase (Decrease) Increase (Decrease) Test Year Prior Year Test Year Prior Year 0554220 0554220 0555016 0555016 0555125 0555125 0555130 0555130 0555135 0555135 2,593,349 1179 773 1,413,577 837,851 1 434 924 (597,073) 1,255,368 283 173 972,196 1,289,710 911 843 377,867 1,262,635 617 371 645,264 785,922 811130 (25,207) 1,403,010 770 938 632,072 645,289 1 408 862 (763,573) 1,253,384 (725 696) 1,979,081 1,626,397 760 816 865,581 2,341,156 908 258 1,432,898 5,960,987 369 720 5,591,267 9,639,997 1 223 623 8,416,374 3,195,595 1 991 664 1,203,931 30,672,705 9 897 418 20,775,288 1,185,864 (351 763) 1,537,627 1,092,379 1 597 522 (505,143) 1,359,585 655 929 703,656 1,369,189 968 505 400,685 1,712,813 1 586 726 126,087 1,344,144 1 200 275 143,870 1,303,704 2 053 899 (750,195) 15,416,253 11729341 3,686,911 1,811 9,021 7,215 8,346 4,667 2,511 3,836 440 37,848 1,811 9,021 7,215 8,346 4,667 2,511 3,836 440 37,848 3,642,396 1 955 285 1,687,110 3,380,250 1 324 315 2,055,935 7,641,032 1186 394 6,454,637 2,790,529 1404177 1,386,352 7,189,554 1 777 744 5,411,811 38,331,512 51 678 839 (13,347,327) 22,374,322 12 512 050 9,862,272 14,418,801 12 179 059 2,239,742 11,055,020 12 842 298 (1,787,278) 15,998,913 11889308 4,109,605 199,389,479 146 063 485 53,325,994 2,893,971 2 510 575 383,396 3,644,489 1 895 824 1,748,665 2,770,508 1 696 586 1,073,922 41,200,052 32 621 652 8,578,400 l/C Joint Disp - Pur Pwr l/C Joint Disp - Pur Pwr Purchased Power - Renewable Purchased Power - Renewable Purchased Power-Co Generation Purchased Power-Co Generation Increase (Decrease) Test Year Prior Year 964,431 839 921 124,510 Increase (Decrease) Increase (Decrease) Test Year Prior Year 1,050,842 708 641 342,202 Solar: Maint Misc Gen Pit Solar: Maint Misc Gen Pit Increase (Decrease) Test Year Prior Year 615,356 420 707 194,649 3,673,131 3 298 751 374,379 4,034,297 18 382 281 (14,347,984) 1,132,577 4 944 586 (3,812,009) 10,588,845 10 746 221 (157,376) 15,023,552 9 857 744 5,165,807 14,530,128 11234875 3,295,253 1,766,157 1 806 371 (40,214) 2,688,446 1 999 684 688,762 3,215,954 2 645 122 570,833 1,220,391 1 616116 (395,725) 388,107 2 523 891 (2, 135, 784) 989,218 9 685 120 (8,695,903) 2,250,031 3 580 177 (1,330,147) 18,824,813 12 332 653 6,492,160 18,898,281 10824729 8,073,552 16,179,815 13546592 2,633,222 21,437,349 13 754 736 7,682,613 20,059,642 14 343 219 5,716,422 4,050,253 3 213 616 836,636 6,855,676 3 609 341 3,246,336 2,496,172 3 723 184 (1,227,012) 5,328,043 3 721 794 1,606,250 5,106,055 3 196 873 1,909,182 384,327 2 602 683 (2,218,355) SC DERS Purchased Power SC DERS Purchased Power 33 (33) Increase (Decrease) Test Year Prior Year 0555200 0555200 Interchange Power Interchange Power Increase (Decrease) Test Year Prior Year 0555202 0555202 Purch Power-Fuel Clause Purch Power-Fuel Clause Increase (Decrease) Test Year Prior Year 0555750 0555750 Purchases-Generation Imbalance Purchases-Generation Imbalance Increase (Decrease) Test Year Prior Year 0556000 0556000 System Cnts & Load Dispatching System Cnts & Load Dispatching Increase (Decrease) Test Year Prior Year 0557000 0557000 other Expenses-Oper other Expenses-Oper Increase (Decrease) Test Year Prior Year Test Year Prior Year 0557001 0557001 0557450 0557450 Test Year Prior Year 0557451 0557451 0557980 0557980 0560000 0560000 0561100 0561100 8,349,723 9 167 755 (818,031) 44 44 137,903 119 969 17,934 137,524 125 095 12,429 139,660 122 876 16,784 142,404 117 422 24,982 1,629,675 1 411 430 218,246 8,072,938 7 375 650 697,288 6,990,511 5 974 078 1,016,433 8,078,018 6 981 919 1,096,099 7,229,069 6 403 184 825,885 8,274,714 7 409 911 864,803 7,183,943 5 665 828 1,518,114 1,200 600 600 1,200 600 600 600 600 600 600 1,200 600 600 500 1,325 500 1,325 7,364,128 7 036 385 327,743 970 1,200 600 600 8,592,850 10 109 638 (1,516,788) 84,847,772 77 002 059 7,845,713 (364) 1,200 600 600 5,000 12 500 (7,500) 8,891,001 (77 354 926) 86,245,927 25,459,871 21 553 627 3,906,244 17,320,451 18 855 103 (1,534,652) (22,665) (3101) (19,564) 1,054 6 624 (5,570) 3,176 15113 (11,936) 1,266 12 353 (11,086) 1,343 16151 (14,808) 298,700 248,407 79,235 72,138 388,022 221,358 352,354 426,263 29,131 38 291 (9,160) (364) 1,490,208 (4 374 651) 5,864,859 73,799 79,170 24 665 (24,665) 141,369 115 098 26,271 143,259 116 218 27,041 1,200 600 600 206,530,267 200 104 902 6,425,366 137,521 114 998 22,524 144,437 117194 27,243 1,200 600 600 12,550,923 12 831 879 (280,956) 130,271 69115 61,156 141,648 115 752 25,897 1,800 600 1,200 18,796,332 7 618 066 11,178,266 11,988 3 509 8,480 123,494 114 348 9,145 4,705,933 4 745 802 (39,870) 10,461,350 6154141 4,307,209 1,815 5135 (3,320) 120,865 119 312 1,552 7,310,886 5 776 008 1,534,878 17,965,895 16 059 618 1,906,277 22,490 2 426 20,064 119,592 113149 6,443 5,113,467 6 619 851 (1,506,383) 32,721,397 27 448 387 5,273,010 (588) 3 511 (4,099) 13,370 4 269 9,101 5,931,317 2 903 807 3,027,510 33,590,273 30 287 073 3,303,200 31,258 3 777 27,482 4,525 2 058 2,467 970 Load Dispatch-Reliability Load Dispatch-Reliability 1 073 1,073 3,435 1 359 2,076 Increase (Decrease) Supervsn and Engrng-Trans Oper Supervsn and Engrng-Trans Oper 18151 (18,151) 3,934 2 782 1,152 EA & Coal Broker Fees EA & Coal Broker Fees Retail Deferred Fuel Expenses Retail Deferred Fuel Expenses 15,845,561 22 198 823 (6,353,262) 3,689 1 494 2,195 364 Commissions/Brokerage Expense Commissions/Brokerage Expense 7,654,467 10 719 890 (3,065,423) 5,223 504 4,719 364 Increase (Decrease) Test Year Prior Year 20,156,353 10 196 680 9,959,673 Increase (Decrease) Increase (Decrease) Test Year Prior Year 7 630 (7,630) 14,863,614 30 162 570 (15,298,956) NC REPS - RECS RECOVERY NC REPS - RECS RECOVERY Increase (Decrease) Test Year Prior Year 13,574,379 17260021 (3,685,642) 33 33 8,557,037 876 623 7,680,415 600 (600) 3 250 (3,250) 1,200 600 600 12,600 7 200 5,400 625 (625) 7,795 16 375 (8,580) 2,863,047 (1 974 616) 4,837,663 (11,007,596) 8 592 325 (19,599,920) (1,339,930) 21 647 478 (22,987 ,408) 7,131,847 36 379 456 (29,247 ,609) 4,929,077 30 320 997 (25,391,919) 7,314,452 11397597 (4,083, 146) (10,853,484) 27 248 460 (38, 101,944) 60,755,982 93 167 472 (32,411,490) 3,946 8 281 (4,335) 319 21 042 (20,723) 1,246 8 962 (7,716) 2,510 (29 380) 31,890 1,884 2 602 (718) 1,318 (12 345) 13,663 72 2 254 (2,182) (4,530) 48 555 (53,085) 216,871 492,785 76,415 76,438 378,654 134,497 210,633 495,166 73,061 75,426 74,079 68,331 214,717 523,200 2,436,540 2,913,179 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For The Test Year Ended December 31, 2016 And The Twelve Months Ended December 31, 2015 ltemNo.12A COMPARISON OF TEST YEAR ACCOUNT BALANCES WITH THOSE OF PRECEDING YEAR ELECTRIC OPERATING EXPENSE ACCOUNTS Total For 12 Account Number & Description Increase (Decrease) January (5,371) February (73,909) 184,467 192 336 (7,869) 170,907 174 628 (3,721) March 50,293 July May 166,664 June (275,914) 173,270 184 964 (11,694) 186,255 169 392 16,863 187,795 172 426 15,369 186,734 13 846 172,888 178,512 173 293 5,220 175,055 159 482 15,572 183,116 87 801 95,316 181,058 159 257 21,802 183,393 149 954 33,439 200,773 172 528 28,245 2,191,336 1 809 906 381,429 84,775 70 098 14,677 940,162 830 944 109,218 292,406 267 292,139 (23) August 244, 156 September (284,533) October (2,365) November 5,748 December (308,483) Test Year Prior Year 0561200 0561200 Load Dispatch-Mnitor&OprTrnSys Load Dispatch-Mnitor&OprTrnSys Increase (Decrease) Test Year Prior Year 0561300 0561300 Load Dispatch - TransSvc&Sch Load Dispatch - TransSvc&Sch Increase (Decrease) 72,125 70 736 1,389 70,987 68 298 2,688 72,864 69 998 2,866 81,324 68 536 12,787 83,029 68 922 14,107 81,641 66 714 14,927 77,536 68 877 8,660 78,005 68 051 9,954 78,958 68 729 10,229 79,528 72 851 6,677 79,392 69134 10,258 Test Year Prior Year 0561500 0561500 ReliabilityPlanning&StdsDev ReliabilityPlanning&StdsDev Increase (Decrease) 23,420 4 055 19,364 17,173 30,287 3 485 26,802 27,976 0 27,976 16,240 8 16,233 15,330 (5 452) 20,782 15,879 15 15,865 57,685 4 400 53,285 11,823 34 861 (23,038) 14,161 (41105) 55,267 27,351 35,081 17,173 27,351 35,081 220 (220) 108 3 105 Test Year Prior Year 0561600 0561600 Trans Svc Studies Trans Svc Studies Increase (Decrease) (95,000) 1,261 3 647 (2,386) (69,685) 2 076 (71,761) 1,358 65 704 (64,345) 52,373 29 764 22,609 Station Expenses Station Expenses Increase (Decrease) 54,487 42 544 11,942 43,231 49 720 (6,489) 36,635 118 039 (81,404) 132,738 194 716 (61,979) 235,698 326 537 (90,839) 217,283 226 280 (8,997) 262,281 174 801 87,480 61,986 139 574 (77,587) 200,719 210 095 (9,376) 0563000 0563000 Overhead Line Expenses-Trans Overhead Line Expenses-Trans Increase (Decrease) 73,472 67 303 6,169 19,995 33 739 (13,744) 32,706 166 428 (133,722) 173,070 107 746 65,325 109,677 97 427 12,250 54,970 240 231 (185,261) 71,861 194 046 (122,185) 44,874 85 081 (40,207) 42,838 11125 31,713 0565000 0563000 Transm Of Elec By others Transm Of Elec By others Increase (Decrease) 0562000 0562000 Test Year Prior Year Test Year Prior Year Test Year Prior Year 0565010 0565010 TRANS OF ELECT - PURCHASES TRANS OF ELECT - PURCHASES Increase (Decrease) Test Year Prior Year 0566000 0566000 Misc Trans Exp-other Misc Trans Exp-other Increase (Decrease) Test Year Prior Year 0566100 0566100 Misc Trans-Trans Lines Related Misc Trans-Trans Lines Related Increase (Decrease) 0567000 0567000 0568000 0568000 Rents-Trans Oper Rents-Trans Oper Increase (Decrease) Suprvsn and Engrng-Trans Maint Suprvsn and Engrng-Trans Maint Increase (Decrease) 334,594 407 719 (73,125) 71,197 222 043 (150,847) 471 (471) 41,636 85 771 (44,135) 2,835,121 514 608 2,320,512 204 271 (204,271) 890 433 457 51,892 97 789 (45,897) (1,362,027) 590 950 (1,952,977) 852 2194 (1,342) (15,008) 19 722 (34,730) (16,221) 99 546 (115,768) 152,374 133 851 18,523 33,085 118192 (85,107) 35,473 420 627 (385,153) 1,465,991 2 154 976 (688,985) 27,824 79 688 (51,864) 16,786 22192 (5,406) 176,173 54 002 122,171 844,247 1159 007 (314,760) 761 761 761 761 10 310 (10,310) 581,157 412 585 168,572 338,599 1113 240 (774,641) 546,662 208 050 338,613 764,283 367 485 396,798 384,624 609 177 (224,552) 678,871 403 125 275,746 783,766 469 679 314,087 510,956 636 551 (125,595) 488,550 506 380 (17,831) 6,885,154 6 239 548 645,606 769 7,510 22,635 30,914 769 7,510 22,635 30,914 1,000 205111 (204,111) 6 210 648 (210,642) 205111 (205,111) 960 206 061 (205,101) 205111 (205,111) 753 205111 (204,357) 474 (474) 857 (857) (0) 114 (114) 30 (30) 170 222 (53) 26,779 36 481 (9,702) 45,448 95 393 (49,945) 15,594 141 081 (125,487) 10,053 59 360 (49,307) 44,509 49 055 (4,546) (45,924) 44 846 (90,770) 73 (73) 21 (21) 0569000 0569000 Maint Of Structures-Trans Maint Of Structures-Trans Increase (Decrease) Test Year Prior Year 0569100 0569100 Maint of Computer Hardware Maint of Computer Hardware Increase (Decrease) 761 355 406 24,902 509 24,393 37 (37) 242 77 165 Test Year Prior Year 0569200 0569200 Maint Of Computer Software Maint Of Computer Software Increase (Decrease) 203,778 194 395 9,383 204,594 151 680 52,914 222,908 193 874 29,034 234,214 166 261 67,953 Test Year Prior Year 0569300 0569300 Maint of Communication Equip Maint of Communication Equip Increase (Decrease) 350 Maint Stat Equip-other- Trans 1,682 350 16,006 (476,639) (94,892) 2 499 (97,390) 10 310 (10,310) Test Year Prior Year 0570100 509 2 298 (1,789) 117 (117) 2,517 16146 (13,629) Test Year Prior Year 602 2 630 (2,028) 545 (545) 2,973 (47 695) 50,668 Generation lnterconnectStudies Generation lnterconnectStudies Increase (Decrease) Test Year 813 (813) 2,251 1 904 346 0561700 0561700 Test Year Prior Year (95,000) 800 (800) 3,776 1157 2,619 Test Year Prior Year Test Year Prior Year (0) Months April 7,098 3,833 247,378 200 739 46,639 181,541 149 237 32,304 1,770 160 1,610 13,791 7,503 740 13,791 7,503 740 847 1193 (347) 32,554 27 503 5,051 1,596 3,502 3 795 (293) 1,596 11,047 31129 (20,081) 20,016 78 599 (58,583) 26,484 60 969 (34,485) 3 494 (3,494) 16 (16) (231) 231 26 (26) 9 307 (298) 175,045 175 697 (652) 167,195 168 692 (1,497) 167,528 190 526 (22,998) 161,941 190 198 (28,257) 9,791 1 072 8,719 2 482 (2,482) 1 970 (1,970) 1 893 (1,893) 16 059 (16,059) 2 222 (2,222) 1 989 (1,989) 6,337 18,101 28,082 17,567 12,636 59,690 18,286 228,125 180 088 48,037 541,135 201 353 339,782 280,089 807 975 (527,887) 27,684 4 845 22,839 2,735,383 2 162 739 572,643 10,142 28 649 (18,507) 961 (961) 20,156 95,951 1 663 464 (1,567,513) 29,029 231,404 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For The Test Year Ended December 31, 2016 And The Twelve Months Ended December 31, 2015 ltemNo.12A COMPARISON OF TEST YEAR ACCOUNT BALANCES WITH THOSE OF PRECEDING YEAR ELECTRIC OPERATING EXPENSE ACCOUNTS Total For 12 Time Period Prior Year Test Year Prior Year Test Year Prior Year Test Year Prior Year Test Year Prior Year Test Year Prior Year 0570100 0570200 0570200 0571000 0571000 0572000 0572000 0573000 0573000 0580000 0580000 Account Number & Description Maint Stat Equip-other- Trans Increase (Decrease) Januarv 21124 Main-Cir BrkrsTrnsf Mtrs-Trans Main-Cir BrkrsTrnsf Mtrs-Trans Increase (Decrease) 272,996 159 504 113,492 287,967 243 250 44,718 Maint Of Overhead Lines-Trans Maint Of Overhead Lines-Trans Increase (Decrease) 659,975 1 554 222 (894,247) 502,717 183 277 319,440 (1,764) 547 26 (1,764) 547 26 Maintenance of Underground Lin Maintenance of Underground Lin Increase (Decrease) Maint Of Misc Transm Plant Maint Of Misc Transm Plant Increase (Decrease) (19,442) 377 Februarv 8 223 7,784 March 24 428 161 909 (20,595) (40,062) (143,808) (147,437) 299,094 462 891 598,704 469 932 128,771 313,951 577 193 (263,242) 462,547 353 314 109,232 (163,797) 1,287,567 1 092 548 195,020 60 November 12 489 7,667 December 5 093 23,936 485,443 190 205 295,238 634,437 202 395 432,041 529,618 230 242 299,376 437,641 224 083 213,558 458,527 146 030 312,497 5,368,386 4 190 787 1,177,599 1,589,492 883 222 706,270 1,613,964 745 602 868,362 10,286,562 964 010 9,322,552 4,531,203 1 207 349 3,323,854 23,519,116 13 679 133 9,839,983 (3,144,772) 786 300 (3,931,073) (1,192) 5 724 76 375 33 282 72 696 36 366 24 228 10 986 13 069 272 726 (76,375) (33,282) (72,696) (36,366) (24,228) (10,986) (13,069) (273,918) 1,006 12 288 3,381 2 763 (777,097) (759,297) 112 482 6 984 1181 54,569 122 949 83,622 65 724 17,898 93,922 119 232 66,866 110 864 48,780 134 020 52,097 116 842 51,132 134 806 48,056 125 496 47,540 105 316 59,332 146 042 44,612 95 601 (68,380) (25,310) (43,998) (85,240) (64,745) (83,674) (77,440) (57,776) (86,710) (50,989) 406,199 437 034 460,114 473 945 573,995 495 733 78,262 358,734 605 063 460,936 503 577 378,287 489 824 399,949 486 828 421,697 570 566 381,091 462 659 (16,211) (30,835) (13,832) 134,794 150 460 130,988 124 960 6,029 104,208 120 528 Test Year Prior Year 0582200 0582200 Relays And Meters-Dist Relays And Meters-Dist Increase (Decrease) 10,218 1 462 8,756 5,470 1 640 3,830 Overhead Line Exps-other-Dist Overhead Line Exps-other-Dist Increase (Decrease) 52,291 45 453 6,838 82,935 25 820 57,115 Transf Set Rem Reset Test-Dist Transf Set Rem Reset Test-Dist Increase (Decrease) 10,682 9,551 13 551 10,682 (4,001) Test Year Prior Year 0584000 0584000 Underground Line Expenses-Dist Underground Line Expenses-Dist Increase (Decrease) Test Year Prior Year 0585000 0585000 St Lghtng and Sgnl Systm-Dist St Lghtng and Sgnl Systm-Dist Increase (Decrease) Test Year Prior Year 0586000 0586000 Meter Expenses-Dist Meter Expenses-Dist Increase (Decrease) Test Year Prior Year 0587000 Gust Install Exp-other Dist Gust Install Exp-other Dist Increase (Decrease) Test Year Prior Year 0588100 0588100 Misc Distribution Exp-other Misc Distribution Exp-other Increase (Decrease) Test Year Prior Year 0589000 0589000 Rents-Dist Oper Rents-Dist Oper Increase (Decrease) Supervsn and Engrng-Dist Maint Supervsn and Engrng-Dist Maint Increase (Decrease) (15,665) 305,577 272 241 33,336 132,971 239 590 (106,620) (11,282) 618 (246,329) (42,641) 105,520 173 473 83,982 147 796 (16,319) 102,682 98 250 4,432 (67,952) (63,814) 4,235 2136 2,099 30,701 2 935 27,766 3,046 13 851 6,616 2 438 4,178 (56,391) 62,200 69 784 (10,805) (6,872) (699) 3,702 4 361 (660) 1,684 666 279 387 Supervsn and Engring-Dist Oper Supervsn and Engring-Dist Oper Increase (Decrease) (6 605) 7,402 551 322 (319,918) (5,724) 19 080 Station Expenses-other-Dist Station Expenses-other-Dist Increase (Decrease) 0590000 0590000 3,303,443 2 056 290 1,247,153 October 17134 1,152 (19,019) 0582100 0582100 Test Year Prior Year 1,791,860 1 504 981 286,879 587,461 931 747 (344,286) Months September 51 016 8,673 5,535 15 807 Test Year Prior Year 0587000 (324,826) (1,887) August 8 535 4,101 (10,272) 449,576 465 788 0583200 0583200 796 1,028,945 1 353 771 19 453 25 602 Load Dispatch-Dist of Elec Load Dispatch-Dist of Elec Increase (Decrease) Test Year Prior Year 68,160 1 347 562 (1,279,402) 4!!h'. (25,225) 0581004 0581004 0583100 0583100 June 175 519 46 398 Test Year Prior Year Test Year Prior Year _M_., fil!d.! 144 1,540 2 730 (779,827) 84 612 (843,909) 67,449 19186 48,262 717,977 1 296 078 406,469 540 872 5,214,815 6 006 770 (578,101) (86,879) 517,768 474 881 42,887 (148,869) (81,567) (134,403) 89,607 88 078 1,529 97,021 130 798 79,431 103 547 61,379 109118 137,393 155190 (33,776) (24,116) (47,739) 104,250 72 881 31,369 (17,797) (243,820) 6,016 25,058 2194 22,865 3,384 8 272 4,518 2 758 1,760 2,844 3184 5,055 8,161 2 277 5,884 110,267 44107 66,160 11,137 20 428 (111,537) 961 (4,888) (340) (791,955) 1,231,257 1 475 077 51,476 91 698 8,199 45 808 4,970 46 942 8,984 49 426 8,350 54 983 (198,346) 57 321 21,097 54 448 56,904 606 839 (7,584) (40,222) (37,608) (41,971) (9,291) (40,441) (46,634) (255,667) (33,350) (549,935) 16,314 10 446 5,867 10,201 15 085 10,098 9 212 13,481 11 016 2,465 9,611 9 004 13,124 8 096 5,028 9,375 16 384 10,964 13 548 10,303 22 916 134,171 138 734 994 (7,009) (2,585) (12,613) 274,566 231 497 43,069 437,916 337 163 100,753 471,986 24 878 447,108 358,261 5 098 353,163 471,575 1 577 984 344,990 412 033 1,178 2,470 1,426 200 601 577 696 312 1,773 1,115 388,431 217143 171,288 371,029 231 063 139,966 779,939 292 713 487,226 44 728 (101,119) 10,468 9 475 (4,883) 2 524 (2,324) 543,282 394 624 148,658 886 490,639 943 463 (452,824) 677 486 191 484,003 258 284 225,719 359,761 (427 422) 787,183 607 509,967 13 068 496,899 (1,106,409) 340 1,131 190 4 383 197 934 190 802,016 288 020 513,996 827,825 277 646 550,180 964,025 277 948 686,078 (4,043) (67,042) 294 12,232 411 615 (399,384) (4,563) 674,704 280 377 394,327 4,712,175 4 081 995 630,180 10,276 11103 86 2,285 86 2,285 684,331 512 503 171,828 728,214 574 477 153,737 805,273 257 323 547,950 7,511,340 3 821 334 3,690,006 1 903 (1,609) (827) 145,942 139,820 104,731 124,315 128,981 160,501 189,959 212,603 233,741 152,242 217,721 203,418 2,013,972 125110 107 922 123 783 533 152191 (23,211) 148152 138 675 134180 159 715 1 639 608 39,340 41,807 73,927 99,561 155 859 (3,617) 150 559 31,897 122 301 (17,570) 121161 20,832 67,162 43,703 374,364 925,640 1 876 831 7,864,307 2 299 575 5,564,732 (3,685,575) 1045140 (4,730,715) 3,551,283 2 549 409 1,001,873 399,082 2 225 472 (1,826,390) 2,435,090 1185 226 1,249,864 2,219,327 2 017 635 201,692 2,443,540 1 843 696 599,844 2,109,635 1 669 078 440,557 2,157,618 2 232 336 2,394,358 2 026 721 367,637 2,753,638 1 958 087 795,551 25,567,942 22 929 206 2,638,737 222,008 273 928 214,947 305 438 210,163 306 420 285,307 308 872 216,268 314 287 215,435 310 328 (90,491) (96,257) (23,564) (98,019) (94,893) 11,421 (873 499) 884,920 2,533,934 2 669 866 (51,921) 78 378 (300) 2,005 (5 423) 7,427 8,189 13 916 (951,191) 210,776 395 315 215,537 332 970 232,528 347 317 (184,538) (117,433) (114,789) (31,182) 2,594 (120) 2,714 (1,352) 480 (1,832) (387) 51 14 816 (14,764) 291,476 322 658 208,067 325 832 (117,765) 1,685 (620) (640) 233 640 (1,685) 203 (203) 1,482 (1,482) 4,222 5 044 (823) 978 978 (74,718) (135,933) (5,727) DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For The Test Year Ended December 31, 2016 And The Twelve Months Ended December 31, 2015 ltemNo.12A COMPARISON OF TEST YEAR ACCOUNT BALANCES WITH THOSE OF PRECEDING YEAR ELECTRIC OPERATING EXPENSE ACCOUNTS Total For 12 Time Period Test Year Prior Year Test Year Prior Year 0591000 0591000 0592100 0592100 Account Number & Description Maintenance Of Structures-Dist Maintenance Of Structures-Dist Increase (Decrease) 170,987 102 824 68,164 152,037 146 524 5,513 80,321 161 392 96,799 168 481 (81,071) (71,882) 242,767 151 388 91,380 255,964 200 983 54,981 113,823 241 776 202,034 479 934 181,771 362 306 210,385 453 870 210,145 332 337 (127,954) (277,899) (180,535) 352,615 267 828 84,787 843,214 10 475 250 (9,632,036) (735,797) 0592200 0592200 Cir BrkrsTrnsf Mters Rely-Dist Cir BrkrsTrnsf Mters Rely-Dist Increase (Decrease) Test Year Prior Year 0593000 0593000 Maint Overhd Lines-other-Dist Maint Overhd Lines-other-Dist Increase (Decrease) Test Year Prior Year Test Year Prior Year Test Year Prior Year Test Year Prior Year 0593100 0593100 0594000 0594000 0595100 0595100 0595200 0595200 0596000 0596000 (5,998) 30 (30) Maint Station Equip-other-Dist Maint Station Equip-other-Dist Increase (Decrease) Test Year Prior Year Test Year Prior Year 5 998 September 1,296 9 308 (8,012) Right-Of-Way Maintenance-Dist Right-Of-Way Maintenance-Dist Increase (Decrease) 43,324,737 5 257 625 38,067,112 (122,191) 243,139 380 362 (137,224) 110,877 138 055 86,206 241 777 (27,178) (155,572) 226,395 155 324 71,072 253,833 141 222 112,611 (101,121) 8,672,678 6 810 649 1,862,028 (6,301,141) 10 332 301 (16,633,441) 6,616,460 4 773 053 1,843,408 8,139,845 6 625 833 1,514,013 12,292,519 5 691 501 6,601,018 4,608,265 5 557 543 27,468 10 068 17,400 17,281 9 793 7,488 19,074 10 194 8,880 24,240 19150 5,090 26,766 16 778 9,988 38,400 12 779 25,621 30,078 15 596 14,482 496,534 336 690 159,845 424,362 431146 515,880 426 004 89,875 375,837 476 279 (100,441) 418,179 402 097 16,081 575,972 483 104 92,869 80,202 53 346 26,856 53,680 86142 54,618 61 453 57,384 67115 59,156 66 857 (32,462) (6,835) (9,731) (7,701) 2,030 13 439 16,543 6 857 9,686 22,146 8 979 13,167 2 426 080 (3, 161,877) 14,143 22 593 Maint-Underground Lines-Dist Maint-Underground Lines-Dist Increase (Decrease) 482,954 406 405 76,549 324,695 367 329 372,581 393 217 (42,834) (20,838) Maint Line Transfrs-other-Dist Maint Line Transfrs-other-Dist Increase (Decrease) 78,385 56 293 22,091 76,588 63 247 13,341 70,905 76 794 Cir Brkrs Transf Capcitrs-Dist Cir Brkrs Transf Capcitrs-Dist Increase (Decrease) (1,489) (3,987) (5,889) 1 937 7 018 4,029 42 737 (3,426) (11,005) (38,708) 395,251 578 750 19,603 (19108) 38,710 (8,784) (11,409) 94,166 483 715 (949,278) (32,310) 9 443 772,683 836 791 (16,951) (9,555) (64,109) (16,435) 33,790 1 398 32,392 (10,448) (7,493) 583 (8,076) (45,315) (5167) (41,753) (11,268) 376,019 350 146 25,873 692,496 556 854 135,642 535,068 234191 300,877 557,982 564 498 149,013 157 578 156,814 151 226 5,588 172,405 138 465 33,940 (84,312) 2,263 344 911 (342,648) (6,516) 142,021 107 012 35,009 135,941 115 799 20,142 133,294 116 674 16,620 172,668 123 768 48,900 139,740 182 788 149,688 161 322 (43,048) (11,634) Test Year Prior Year 0598100 0598100 Main Misc Dist Pit-other-Dist Main Misc Dist Pit-other-Dist Increase (Decrease) 267,300 317 306 294,029 234 059 59,970 247,567 302 771 357,147 252 325 104,822 247,334 323 340 55,684 291 920 8,310 360 837 285 378 19,662 271 238 (236,236) (352,527) (369,690) (251,576) 0870000 0870000 Distribution Sys Ops-Supv/Eng Distribution Sys Ops-Supv/Eng Increase (Decrease) Test Year Prior Year Test Year Prior Year Test Year Prior Year 0901000 0901000 0902000 0902000 0903000 0903000 0903100 0903100 Gas Distribution-other Expense Gas Distribution-other Expense Increase (Decrease) 259,549 185 922 73,627 (53,083) (389,548) Test Year Prior Year (11,172) (330,358) (92,225) Storage-Gas Losses Storage-Gas Losses Increase (Decrease) 11,686 22 858 (7,334) 55,764 65 319 529,640 621 865 0823000 0823000 11,995 19 329 395,618 675 752 (280,134) 133,572 182 602 (49,031) 3177 (13,625) 392,625 447 445 (120) 120 (120) 148 372 (520) 148 372 (520) 75 90 (15) 4,822,769 5 153 125 25,978 71 292 723,127 635 006 88,120 990,960 836 921 154,040 6,812,010 6 979 238 152,210 141 661 10,549 163,961 139 089 24,872 1,801,325 1 717 984 83,341 4,495 260 611 6,542 234 316 (256,116) (227,774) 1,426,022 3 479 012 (2,052,991) 65 65 120 (733,335) 58,210 75161 681,420 558 571 122,849 Test Year Prior Year 96,085,107 70 629 379 25,455,728 48,264 101 347 (183,498) (76,005) 9,261,757 4 744 651 4,517,106 (22,435) 79,527 63 717 15,810 (42,708) (55,204) 2,359,027 3 092 362 (54,821) 840,264 882 971 (50,006) 169,352 8 439 160,913 3,520,512 5 105 056 (1,584,544) 1,718,022 1 740 456 230,126 452 154 Maint-StreetLightng/Signl-Dist Maint-Streetlightng/Signl-Dist Increase (Decrease) (8,565) 100,309 72 618 27,691 (7,449) (222,027) Maintenance Of Meters-Dist Maintenance Of Meters-Dist Increase (Decrease) Test Year Prior Year 12,887 11 264 1,623 55,274 62 723 213,024 531 256 0597000 0597000 0880000 0880000 95,226 196 347 158,779 70 434 88,345 (318,231) Test Year Prior Year Test Year Prior Year 1,296 15 336 (14,040) 282,141 119 581 162,560 5,842,058 2 829 839 3,012,219 25,531 15 520 10,011 (8,450) (243,485) 25,870 176 294 (150,424) Months October (167,228) 65 65 60 (60) (75) 90 15 280 406 (406) (280) 406 127 280 47 (47) 60 (60) 494 (494) 447 (447) 10,611 12,768 (9,515) 3,500 281,077 34179 15 085 11 310 2 597 (23,568) (2,317) (20,825) 202113 78,964 11,439 12,391 9,282 12,811 183,209 12,147 12,205 14 956 24100 15 802 13120 19 315 (12,661) (3,411) (3,839) (6,504) 74 812 108,396 (41 004) 53,150 17 841 (4,726) 268,157 54 097 214,059 656,621 659 163 391,351 357 100 34,251 421,081 359 358 61,723 416,018 45 000 371,018 (249,506) 368,902 83 450 285,451 1,077,138 817 283 259,854 1,276,635 1 091 589 185,046 998,822 1138 992 1,042,368 712 266 330,101 1,055,884 842 721 213,163 889,328 806 136 83,192 931,086 376 025 555,062 785,277 745 547 39,731 1,153,243 804 934 348,309 11,568,545 9 507 720 2,060,824 1,272,108 961 499 310,609 943,101 533 328 409,772 921,604 636 771 284,833 948,121 467 961 480,160 1,049,739 793 915 255,824 1,129,410 1157 965 985,774 1 018169 1,058,629 960 747 97,882 1,082,569 1121 314 12,241,651 10 448 744 1,792,907 Supervision-Gust Accts Supervision-Gust Accts Increase (Decrease) 10,230 Meter Reading Expense Meter Reading Expense Increase (Decrease) 312,683 362 217 (49,534) 346,871 318 819 28,051 390,080 354 292 35,788 83,482 33 949 49,534 Gust Records & Collection Exp Gust Records & Collection Exp Increase (Decrease) 442,084 332 218 109,866 854,207 661 570 192,637 1,062,474 1178 440 Gust Contracts & Orders-Local Gust Contracts & Orders-Local Increase (Decrease) 1,000,307 1179 041 1,039,933 535 772 504,161 810,357 1 082 262 (178,734) (115,966) (271,905) (2,542) (140,170) (5,636) (28,555) 414,799 664 305 (32,395) 904 397,998 652 637 (254,639) (38,745) 4,468,044 3 944 389 523,656 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For The Test Year Ended December 31, 2016 And The Twelve Months Ended December 31, 2015 ltemNo.12A COMPARISON OF TEST YEAR ACCOUNT BALANCES WITH THOSE OF PRECEDING YEAR ELECTRIC OPERATING EXPENSE ACCOUNTS Total For 12 Months Account Number & Description Test Year Prior Year 0903200 0903200 Gust Billing & Acct Gust Billing & Acct Increase (Decrease) Test Year Prior Year 0903300 0903300 Gust Collecting-Local Gust Collecting-Local Increase (Decrease) Test Year Prior Year 0903400 0903400 Gust Receiv & Collect Exp-Edp Gust Receiv & Collect Exp-Edp Increase (Decrease) Test Year Prior Year 0903750 0903750 Common - Operating-Gust Accts Common - Operating-Gust Accts Increase (Decrease) 495,519 615 077 (119,558) 1,167,990 909 477 258,514 17,446 6 552 10,894 569,017 489 135 583,168 467 245 485,586 173 378 453,659 406 444 79,882 517,652 604 130 (88,478) 115,923 312,208 47,215 350,163 741 608 (391,445) 365,265 773 482 (408,217) 369,426 758 259 (388,832) 329,892 80 350 249,542 299,918 696 483 (396,565) 22,736 29 822 (7,087) 22,961 23 819 (858) 18,534 38 901 (20,367) 23,902 11 217 34,039 31 261 12,685 2,778 23 1 958 (1,935) 2,477 2153 2,106 4,630 2,106 195 (195) (2,614,054) 107,091 45,333 78 613 (33,280) 29,561 69 493 (39,932) 13,609 6 071 55,506 (5,427) 55 292 (60,719) 64,069 60 651 39,892 90 127 (50,234) 41,906 50 070 (8,164) 44,116 52 473 (8,357) 0904001 0904001 BAD DEBT EXPENSE BAD DEBT EXPENSE Increase (Decrease) (125,380) 606 (125,986) 52,583 69 869 (17,287) 53,091 57 484 (4,393) Test Year Prior Year Test Year Prior Year Test Year Prior Year Test Year Prior Year Test Year Prior Year 0908000 0908000 0908150 0908150 0908160 0908160 0909650 0909650 0910000 0910000 Misc Customer Accts Expenses Misc Customer Accts Expenses Increase (Decrease) Misc Advertising Expenses Misc Advertising Expenses Increase (Decrease) Misc Gust Serv/lnform Exp Misc Gust Serv/lnform Exp Increase (Decrease) 21,992 8 835 21,747 167 972 (146,225) 655,639 1174 785 (519,147) 7,538 585 22 562 484,891 1 018 365 (533,474) (107,949) 106 428 (214,377) 47,881 54 310 (6,429) 285 285 593 (593) 382,474 2 221 505 434,542 2 567 459 735,362 (1 066 768) (1,839,031) (2, 132,917) 1,802,131 36,711 253 939 (217,228) 543,064 94119 76,131 77 262 (1,131) 66,920 22 224 44,696 70,088 51118 18,970 302,015 363 028 (61,014) 8,574 1 556 7,018 904,681 166 434 6,669,543 11924424 738,247 (5,254,881) 448,946 302,907 592 668 (289,761) 57,069 49 826 59,643 51 523 7,243 8,120 663,023 730 728 (67,705) 339 12 327 3,966 2,371 3,966 176 55 1,287 10 176 55 1,287 10 2,414 565 (44 635) 1,849 44,635 30,834 16 269 28,791 19 842 14,565 8,949 134 (134) 4,354 19 211 (14,857) 209 (209) 5,954 17 874 (11,920) 4,095 12 212 (8,117) 13,744 9125 81,137 36122 4,619 45,015 10,925 18 741 (7,816) 363,336 266 907 2 533 (2,533) 8 996 (8,996) 37,418 8 403 12,438 184 29,015 12,254 25,184 34 012 (8,828) 20,638 28 398 (7,760) 29,670 34 810 (5,140) 78,418 26 421 17,708 26 632 (8,924) 28,657 12 720 29,282 18 623 20,400 11 619 42,828 18 821 51,997 15,937 10,659 8,781 24,008 276,522 297 794 (21,272) 389,163 234 586 391,418 276 427 154,578 387,325 984 174 (596,849) 422,387 528 284 (105,897) 25,166 30 195 (5,029) 2,055 18 413 (16,357) 322,932 253 788 12,069 61,102 292,316 359115 (66,799) 451,277 360 027 476,560 372 954 593,575 396 169 91,251 103,606 197,406 269,840 257 771 285,423 224 320 720 102 618 55,856 Advertising Expense Advertising Expense Increase (Decrease) 7,422 7 032 390 10,157 4 827 33,896 4 287 29,609 12,453 15 638 (3,186) 9,856 14 512 (4,656) 4,626 15170 (10,544) 16,674 12 338 5,330 (7,587) 4 585 (12,171) 4,337 17,456 44 392 (26,937) Misc Sales Expenses Misc Sales Expenses Increase (Decrease) 3,330 46 657 (43,327) 8,321 3 862 (9,651) 5 743 (15,393) 1,020 3 544 (2,524) 4,263 1 641 6,398 19 450 (13,053) (8,827) 3 832 (12,659) (8,768) 12103 (20,871) 4,154 12 039 (7,886) 1 400 (1,400) 1,527 2 448 (921) 705 (705) 1 552 (1,552) 93,706 A & G Salaries A & G Salaries 137,975 (4,060,205) 2,371 69,144 0913001 0913001 52,772 (85 203) 239,636 1,595 308,356 351 263 (42,906) Test Year Prior Year 5,004,055 9 064 260 1,595 266,601 410 361 (143,760) Economic Development Discount Economic Development Discount Increase (Decrease) 346,493 728 185 (381,692) 121 234,700 0912300 0912300 6,390,111 6 150 475 121 437,751 381 895 Test Year Prior Year 531,293 628 002 (96,709) (269,675) (7 658) (262,017) 207 21 187 234,650 Demonstrating & Selling Exp Demonstrating & Selling Exp Increase (Decrease) 22,786 672 421,756 328 051 0912000 0912000 13,157 99,522 672 505,660 270 960 Test Year Prior Year 0920000 0920000 23,259 60 789 (37,530) 276,319 41 669 Exp-Rs Reg Prod/Svces-CstAccts Exp-Rs Reg Prod/Svces-CstAccts Increase (Decrease) Test Year Prior Year 10 838,780 3 452 833 36,563 60 353 (23,790) 235,044 425 102 (190,058) 0910100 0910100 0916000 0916000 3,418 10 Gust Assist Exp-General Gust Assist Exp-General Increase (Decrease) Test Year Prior Year Test Year Prior Year 56,552 66 014 (9,462) Gust Asst Exp-Conservation Pro Gust Asst Exp-Conservation Pro Increase (Decrease) Commer/lndust Assistance Exp Commer/lndust Assistance Exp Increase (Decrease) 1,792 25,063 (82 028) 198,440 Test Year Prior Year 0905000 0905000 1,792 51,075 (4 431) 310,332 190 838 373,089 350 304 6,064 8 711 (2,647) 119,494 807,296 608 856 319,830 853 645 (533,815) 269,682 1 264 413 (994,731) 645,908 726 831 (80,923) Uncollectible Accounts Uncollectible Accounts Increase (Decrease) 449,271 819 950 (370,679) 698,224 425 246 258,657 420 539 (161,882) 0904000 0904000 363,034 1088105 (725,071) 550,024 810 727 (260,703) 210,982 442 747 (231,765) Test Year Prior Year Test Year Prior Year 634 941 (307) 571,595 472 072 272,978 509,656 613 418 (103,762) 424,720 445 602 (20,882) 96,428 434,788 395 004 114,992 350,588 365 610 (15,022) 39,783 627,869 617,791 199 680 737,018 537 055 856,184 448 790 5,976,581 5 298 702 418,111 199,963 407,394 677,879 19,600 10 941 164,394 26 250 314,113 190 167 8,659 138,144 123,946 4,030,014 3 402 146 (6) 6,461,573 6,426,645 4,459 5,801,061 5,120,467 13,016,204 6,415,058 5,930,984 6,676,716 2,622 5,616,425 6,929,269 11,766,267 7,261,399 5,847,859 6,572,557 5,414,337 6,132,133 19,796,157 7,586,377 6,167,017 6,534,850 5,646 6 320 (674) 6,406,575 5,767,610 8,650 1 545 7,105 24,476,389 29,393,542 16,591 135150 (118,558) 116,700,850 100,816,624 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For The Test Year Ended December 31, 2016 And The Twelve Months Ended December 31, 2015 ltemNo.12A COMPARISON OF TEST YEAR ACCOUNT BALANCES WITH THOSE OF PRECEDING YEAR ELECTRIC OPERATING EXPENSE ACCOUNTS Total For 12 Account Number & Description Increase (Decrease) Test Year Prior Year Test Year Prior Year 0920100 0920100 0921100 0921100 Salaries & Wages - Proj Supt Salaries & Wages - Proj Supt Increase (Decrease) Employee Expenses Employee Expenses Increase (Decrease) Test Year Prior Year 0921101 0921101 Employee Exp - NC Employee Exp - NC Increase (Decrease) Test Year Prior Year 0921103 0921103 Employee Exp - WH Employee Exp - WH Increase (Decrease) Test Year Prior Year 0921110 0921110 Relocation Expenses Relocation Expenses Increase (Decrease) Test Year Prior Year 0921200 0921200 Office Expenses Office Expenses Increase (Decrease) January 34,928 1,470,800 1 023 845 446,954 17 445 (428) Off Supplies & Exp - Proj Supt Off Supplies & Exp - Proj Supt Increase (Decrease) Test Year Prior Year 0921900 0921900 0921980 0921980 Office Supplies & Expenses Office Supplies & Expenses Increase (Decrease) Test Year Prior Year 0922000 0922000 Admin Exp Transfer Admin Exp Transfer Increase (Decrease) 0922100 0922100 Admin Exp Transf-Construction Admin Exp Transf-Construction Increase (Decrease) Test Year Prior Year 0922200 0922200 Admin Exp Transf-Nonutility Admin Exp Transf-Nonutility Increase (Decrease) Test Year Prior Year 0923000 0923000 Outside Services Employed Outside Services Employed Increase (Decrease) Test Year 0923100 Outside Svcs Cont -Proj Supt - July (724,697) August (717,796) 176,769 470 349 (293,580) 481,344 472 938 57,045 8,407 5,020 537 086 (532,067) 156 140 16 46 477 (431) 64 47 17 96 603 (507) 21 39 21 39 630,752 782 786 (152,034) 999,797 811182 413,998 351 501 188,616 62,498 136 71 64 188 45 142 173 100 73 1,266,137 1 642 430 (376,293) 55 49 439,153 188 827 712 67 645 (108,882) 1120 651 (1,229,533) 181 53 128 September 12,209,780 October (367,833) November 638,965 December (4,917,153) 502,789 14 292 (278) 971,446 (92 860) 480,748 764 004 (283,257) 2,318,788 616 398 138 61 77 69 150 (81) 126 64 62 128 73 56 452,756 970 502 (517,745) 456,988 122 621 334,367 121,119 276 671 (155,553) 122,582 216 995 (94,413) 981 1170 (189) 681 1 364 (683) 267,863 725 024 (457,162) 319,611 212 003 357,895 (1 072 084) 107,608 1,429,980 227,726 213 071 203,209 216 781 (13,572) 193,695 271117 (77,422) 160,096 158 028 2,068 168,103 258 087 (89,984) 2,610 7 019 (4,410) 993 3 077 (2,084) 1,617 1189 429 667 2 040 (1,373) 14,655 1,100,819 598 031 210,782 1,064,305 193,712 885 670 (691,959) (19,764) 1 698 (21,462) 450,894 240 112 (13,540) (13,540) 20 78 (59) 1,702,390 21 (21) (4) 46 120 (74) 299,177 483 448 (184,271) 20 108 (88) 246,857 542 065 (295,208) 35 17 18 49 4 44 (487,432) 1 993 771 (2,481,202) (481,588) (101 000) (380,588) (433,604) (780 368) 329 326 401 90 310 1,727 2 767 (1,040) 292 (292) 292 292 91 3 424 (3,332) 20 20 561,237 628 310 (67,073) 1,118,215 1192 827 (74,612) 1,769,385 2 537 960 (768,576) 1,899,797 2 517 772 (617,975) 367 290 77 1,758 1 044 714 409,575 307 619 426,765 144 216 326,859 317164 585,493 473 000 4,535,847 3 758 010 101,956 282,550 9,695 112,493 1,203,875 240 690 963,185 1,506 1 948 (441) 129,562 235 154 (105,593) 190,882 290 042 (99,161) 1,061 37 396 (36,334) 907 1 784 (877) 149,909 331 842 (181,933) 2,139 1 929 210 15 202 (15,202) 17 577 (17,577) 18 498 (18,498) 374,188 3,035,734 4 455 963 4,363,916 6 419 707 (1,420,229) (2,055, 791) 3,598,888 5043114 (1,444,226) 2,504,723 5087113 (2,582,390) (5,890) 60 680 (66,570) 690 1,862,193 2 130 909 (268,716) 14115 (14,115) 110 (110) 2,452,522 2 078 334 155,844 90 30 61 1,922,867 2 204 236 (281,369) 2,161,597 2 192 058 (30,461) 1,856,303 2 276 675 (420,373) 2,154,416 2 088111 66,305 1,908,199 1 929 085 (20,885) 2,470,762 2 122 563 348,199 78,756 156 40 (156) 78,756 156 40 (156) 47 15 267 (15,267) 777,836 3,089,763 2 933 919 690 185 (185) 15 404 (15,404) 8,411,662 10353065 (1,941,403) 126 65 61 90 1,885,270 2 155 002 (269,733) (12,897) 3 753 (16,651) 72 24 48 690 1,887,978 2 193 972 (305,993) 12 29 (17) 3,877,042 4 226 419 (349,377) 690 1,868,851 2111 702 (242,851) Months 15,884,226 346,764 90 30 (30) Office Supply And Exp-Partner Office Supply And Exp-Partner Increase (Decrease) Test Year Prior Year Test Year Prior Year 56 30 26 145,899 88 854 41 219,006 225 440 (6,434) 0921800 0921800 172 292 (121) 467,792 479 710 (11,918) 41 250,326 Test Year Prior Year 343 8 335 50,254 390 484 (340,230) 277 Computer Services Expenses Computer Services Expenses Increase (Decrease) other other Increase (Decrease) 442,643 806 377 (363,734) 277 0921400 0921400 0921600 0921600 June 4,504,868 (4) 20 Test Year Prior Year Test Year Prior Year May (1,312,844) 20 Telephone And Telegraph Exp Telephone And Telegraph Exp Increase (Decrease) Computer Rent (Go Only) Computer Rent (Go Only) Increase (Decrease) April (745,731) 12 0921300 0921300 0921540 0921540 March 6,601,147 12 Test Year Prior Year Test Year Prior Year February 680,593 5,480,017 5 516 206 (36,189) 1 392 (1,392) 18 603 (18,603) 23,647,618 26 460 045 (2,812,428) 78,797 185 78,612 47 116 058 (116,012) 47 110 110 2,948,974 5 781 305 (2,832,330) 3,116,805 3 593 002 (476,197) 4,187,619 7 697 430 2,239,356 4 497 413 3,438,822 1969195 (3,509,811) (2,258,056) 1,469,626 6,856,105 7 653 049 (796,944) 44,223,480 59 791 831 (15,568,351) DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For The Test Year Ended December 31, 2016 And The Twelve Months Ended December 31, 2015 ltemNo.12A COMPARISON OF TEST YEAR ACCOUNT BALANCES WITH THOSE OF PRECEDING YEAR ELECTRIC OPERATING EXPENSE ACCOUNTS Total For 12 Time Period Prior Year 0923100 Test Year Prior Year 0923980 0923980 Test Year Prior Year Test Year Prior Year Test Year Prior Year Test Year Prior Year 0924000 0924000 0924050 0924050 0924980 0924980 0925000 0925000 Account Number & Description Outside Svcs Cont-Proj SuptIncrease (Decrease) 650,500 782 750 650,500 782 750 650,500 782 750 650,500 782 750 650,500 782 750 650,500 782 750 650,500 782 750 650,500 782 750 650,500 782 750 650,500 782 750 650,500 782 750 650,500 782 750 (132,250) (132,250) (132,250) (132,250) (132,250) (132,250) (132,250) (132,250) (132,250) (132,250) (132,250) (132,250) (170,713) 1,326,481 1147 477 179,004 Injuries & Damages Injuries & Damages Increase (Decrease) Test Year Prior Year Test Year Prior Year 0928053 0928053 0929000 0929000 Duplicate Chrgs-Enrgy To Exp Duplicate Chrgs-Enrgy To Exp Increase (Decrease) (706,150) 7,480,616 13 218 334 (5,737,718) 3,658,000 3 477 000 181,000 304,833 289 750 15,083 304,833 289 750 15,083 304,833 289 750 15,083 304,833 289 750 15,083 304,833 289 750 15,083 304,833 289 750 15,083 304,833 289 750 15,083 304,833 289 750 15,083 304,833 289 750 15,083 304,833 289 750 15,083 19,222 17 870 1,352 17,983 18148 207,976 546 805 92,394 19 794 72,600 18,287 18 062 163,404 44 904 118,500 20,394 17 330 3,064 20,066 18 706 1,359 19,812 17 478 2,334 20,503 18 419 2,084 19,424 17156 2,268 20,120 16 098 4,022 25 347 63 882 172 898 (25,347) (63,882) (172,898) 1,874,824 2 580 974 4,280,061 548 553 3,731,509 289,884 309 740 24,157 25 387 24,157 25 387 24,157 25 953 24,157 25 953 24,157 25 953 24,157 25 953 24,157 25 953 24,157 25 953 24,157 25 953 24,157 25 953 24,157 25 953 (1,230) (1,230) (1,230) (1,796) (1,796) (1,796) (1,796) (1,796) (1,796) (1,796) (1,796) (1,796) 5,548,763 7 588 174 (2,039,411) 209,631 3 309 457 (3,099,826) (595,734) 1,874 914 961 903 244 658 6,274,565 7 171 584 (897,019) 709 914 (205) 222 548 (327) 1,408 1 417 (8) 5,879,591 6 756 617 (877,026) 360 896 (536) 5,351,453 (33 146 014) 38,497,467 325 822 (497) 6,695,750 6 624 246 71,503 659 360 299 4,676,704 8 099 170 (3,422,466) 9,043,239 5 844 973 3,198,266 1145 1 246 (1,246) 614 979 (365) 340 1 353 (1,012) 1,122 1 337 (215) 8,536 10 407 (1,871) 63 371 63 388 (63,371) (63,388) 955,247 909,862 298,546 394,923 81,798 502,021 489,858 364,195 1,716,973 820,942 4,633,206 12,219,802 1 415137 (505,275) 833 629 (535,083) 940 454 (545,532) 871 497 (789,699) 994 713 (492,692) 899 750 (409,892) 456 562 (92,367) 244 085 705 040 1 588 807 9 893 473 1,472,888 115,902 3,044,400 (153,701) 1,055,366 1 873 615 49,634 49 634 1,086,427 49,634 492 947 1,378,683 1 544 639 497 404 49,634 803 430 (165,956) (651,105) (753,796) 428 (428) 934 (934) (9 721) 9,721 6 964 1 702 (1,394) (6,964) (1,702) 337 (337) 1,407 (1 762 094) 1,763,501 1,407 (1 672 286) 1,673,693 1,407 (1 672 286) 1,673,693 1,407 (1 672 286) 1,673,693 1,407 (1 672 286) 1,673,693 1,407 (1 672 286) 1,673,693 1,407 (1 672 286) 1,673,693 1 394 (19,856) 75,098,778 39 168 308 35,930,471 1131180) 1 074 979 (22,747) (443,314) 10,215,028 4 687 322 5,527,706 (1,145) 17 (17) 1,052,232 639,585 770 771 (131,186) 4,280,061 286 425 3,993,636 24,157 25 387 OTher Employee Benefits OTher Employee Benefits Increase (Decrease) Travel Expense Travel Expense Increase (Decrease) (80,459) 304,833 289 750 15,083 624 (624) Regulatory Expenses (Go) Regulatory Expenses (Go) Increase (Decrease) 338,302 418 761 304,833 289 750 15,083 8,214,240 6 929 233 1,285,007 9,827,790 9 066 278 761,512 311,397 500 292 (98,849) 6,160,155 6 755 889 7,806,000 9 393 000 (1,587,000) (188,895) (121,376) 6,829,658 8 547 655 (1,717,997) 619,918 (175 526) 795,444 2,523,831 6 340 726 (3,816,895) (28,850) 224 1,905,717 1 685 398 220,320 (56,628) 285,605 419 206 Employees'Recreation Expense Employees'Recreation Expense Increase (Decrease) 0928000 0928000 (64,307) 866 (866) (56,830) (133,601) 101 (101) Test Year Prior Year (3, 763, 727) (3 699 420) Months (49,079) 306,616 411 982 Employees' Tuition Refund Employees' Tuition Refund Increase (Decrease) Employee Benefits-Transferred Employee Benefits-Transferred Increase (Decrease) 1,326,481 1383109 (4,746) (105,366) (338,829) 313,106 411 956 1,326,481 1383311 (5 725) 384,747 564 322 (165) 302,744 424 120 1,326,481 1 375 560 (10,471) (179,574) 0926420 0926420 0926600 243,874 272 724 (62 872) (107,841) 12,839 (22) 12,861 251,159 70 968 180,192 297,400 426 586 Test Year Prior Year 0926600 1,320,053 1 287 632 32,421 102,730 89 540 13,190 (129,187) EMPL PENSIONS AND BENEFITS EMPL PENSIONS AND BENEFITS Increase (Decrease) Test Year Prior Year 1,773,486 1 398 946 374,540 (6,010) 102,063 80 377 21,686 298,169 446 685 Environmental lnj & Damages Environmental lnj & Damages Increase (Decrease) Injuries And Damages For Corp. Injuries And Damages For Corp. Increase (Decrease) (5,748) 103,724 131152 (148,516) 0926000 0926000 0926490 0926490 111 Inter-Co Prop Ins Exp Inter-Co Prop Ins Exp Increase (Decrease) Test Year Prior Year Test Year Prior Year 8,866 8 755 (285) 17,196 (11 713) 28,909 Injuries And Damages-other Injuries And Damages-other Increase (Decrease) 0926430 0926430 (5 725) 507,885 (25 901) 533,785 0925200 0925200 Test Year Prior Year 8,866 (113 216) 122,081 10,584 (11 901) 22,485 1,326,481 1189 033 137,448 (26 026) 20,277 58,181 41 048 17,133 8,866 (13 389) 22,255 1,309,538 1192 899 116,639 8,866 (11 713) 20,579 (27,428) Property Insurance Property Insurance Increase (Decrease) 1,363,373 1 262 087 101,287 (13,049) (1,577) 391,028 158 680 232,348 1,363,373 1 208 516 154,858 130,980 144 029 101,698 103 276 169,056 141 007 28,049 Property Insurance For Corp. Property Insurance For Corp. Increase (Decrease) 126 419 (277,878) 294,296 206 712 87,584 (44,400) Test Year Prior Year 0925980 0925980 (151,459) 108,365 152 765 INTER-CO GEN LIAB EXP INTER-CO GEN LIAB EXP Increase (Decrease) Test Year Prior Year 866 (866) 302,077 280 475 21,602 0925051 0925051 0925300 0925300 December Outside Services Employee & Outside Services Employee & Increase (Decrease) Test Year Prior Year Test Year Prior Year November 1,581,183 546 649 1,034,533 2,133,688 1 367 956 765,733 1,407 (1 456 591) 1,457,998 49,634 1 000 845 (951,212) 1,164,572 49 634 1,114,939 (158,849) 49 634 (208,463) (818,249) (2 039) 2,039 1,407 1 407 722 (722) 1,407 1 407 (0) 1,407 1 407 296,080 (220 342) 516,422 472 (472) 1,407 1 567 (160) 2,326,330 7,495,556 8 056 044 (560,468) 1194 (1,194) 16,884 (13 246 613) 13,263,497 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For The Test Year Ended December 31, 2016 And The Twelve Months Ended December 31, 2015 ltemNo.12A COMPARISON OF TEST YEAR ACCOUNT BALANCES WITH THOSE OF PRECEDING YEAR ELECTRIC OPERATING EXPENSE ACCOUNTS Total For 12 Time Period Test Year Prior Year Test Year Prior Year Test Year Prior Year Test Year Prior Year Test Year Prior Year Test Year Prior Year 0929500 0929500 0930150 0930150 0930200 0930200 0930210 0930210 0930220 0930220 0930230 0930230 Account Number & Description Admin Exp Transf Admin Exp Transf Increase (Decrease) Miscellaneous Advertising Exp Miscellaneous Advertising Exp Increase (Decrease) Misc General Expenses Misc General Expenses Increase (Decrease) Industry Association Dues Industry Association Dues Increase (Decrease) 0930250 0930250 Buy\Sell Transf Employee Homes Buy\Sell Transf Employee Homes Increase (Decrease) Test Year Prior Year 0930600 0930600 Leased Circuit Charges-other Leased Circuit Charges-other Increase (Decrease) Test Year Prior Year Test Year Prior Year 0930800 0930800 0930940 0930940 0931001 0931001 Research & Development Research & Development Increase (Decrease) R & D-Alternative Energy R & D-Alternative Energy Increase (Decrease) (271 834) 6,475 (310 777) 52,921 (288 452) 33,867 (300 235) 36,670 (316 247) 38,141 (302 448) 27,254 (285 898) 38,188 (317 029) 33,665 (278 622) 1,605 (322 936) (288 322) 21,187 (210 137) 254,659 135 402 119,256 164,453 76 246 88,207 194,281 238 622 409,876 513130 21,166 44 721 157,243 524 227 (44,341) (103,255) (23,555) (366,964) 454,209 237 007 217,202 (1,214,425) (9 801 521) 8,587,096 (561,465) (421,161) (1 547 803) 986,338 (1 264 039) 842,878 (1,431,382) (1 277 260) 22,103 42 409 57,704 148 339 (20,306) (90,635) (483,894) (2,463,089) (582 521) (1,880,569) (1 380 657) 896,763 75 786,040 75 786,010 762,917 1 565 379 (802,462) (11,192,722) (1101 031) (10,091,691) 169 30 1,239 7 645 637 (1 665) 2,302 (850) (1,149) (773,549) 1 593 3 897 (2,741) 12,418 (1 430) 13,848 128,676 151 027 (103) (22,350) (3,892) 22,700 15 485 7,215 18,838 2 775 16,063 1,226 65 868 341,236 385 253 (27,010) (14,493) 10,091 4197 5,894 5,169 10 061 12,545 11 266 1,279 136,583 155 804 (19,221) (44,017) 426,703 724 085 118,501 481133 597,004 665 504 378,268 911 513 263,808 599 892 (297,363) (362,633) (66,500) (533,245) (336,083) 150 50 100 (2 781) 54 8 46 (818) 4,117 (123,851) (121135) 120,316 114,725 120 864 116,062 120 193 123 851 5 (747) (17,275) 50 50 7,324 281 932 (274,606) 266,839 (9 196 298) 9,463,137 295,834 207 265 88,568 (2,322,596) (1 518 767) (803,829) December (9,402) 157,546 293 102 (546,005) 75 75 100 182 (82) 1,244 2 783 (1,539) 597,405 1 028 001 (430,596) 150 50 (50) 3,954 10,342 1 089 9,253 17,849 1122 16,726 108,190 124 401 92,775 96 401 163 (64,642) 150 4,116 (931) 2 765 (758) (61) (14,906) (173) (856) 6,480 7 465 151,374 142 029 9,346 17,814 3 309 14,505 17,127 12 099 5,028 123,318 162 694 231,004 550 781 335,640 531 305 173,719 910 135 156,920 470 748 154,062 636 263 (319,777) (195,666) (736,416) (313,827) (482,201) 158 (158) 143 289 (146) 150 105 45 (965) 150 186 (36) (917) 6,827 12 355 6 602 53,527 72163 (5,526) (6,602) (16,636) (26,146) 7,073 8 895 153,271 176 757 4,111 10,169 6 013 4,156 16,014 14 816 1,198 112,380 119 517 126,497 128 587 (7,137) (2,090) 139,891 127 546 12,344 128,723 124179 4,545 (89,958) 5 (12,141) 45,926 10 999 34,927 2,784 8 557 (5,773) (39,375) 9,822 18 049 (8,227) (1,822) 2,196,396 2 742 401 (37,092,254) (29 220 638) (7,871,615) 3,405 9,520 (48) 9,568 (3,226,558) (3 492 937) 266,380 (1,740,372) (1 825 885) 85,514 3,405 (230) 76 (305) Months (135,555) 773 549 169 12,964 39 974 (4,892) (154,122) (16,290,903) (1 290 236) (15,000,668) (14,191) November 41,298 69 444 (23,486) 326,711 1 025 021 (698,310) 789,764 773 579 16,185 136,278 162 294 (26,016) 278,654 360 792 (62,136) 976,847 1075146 (98,299) 3,759,745 8 534 381 (4,774,636) 100 100 100 100 1,147 1 277 33,063 21157 11,906 11,164 11,164 118,621 73 688 44,933 92,066 85 083 6,984 102,515 100 906 1,609 1,329,509 1 336 027 8,881 11 785 163,356 90 974 72,382 (130) General Expenses General Expenses Increase (Decrease) 22,634 6 035 16,599 12,241 4 692 7,549 12,176 5 243 6,933 15,319 6 931 8,388 8,159 5 405 2,755 80,603 6 466 74,137 10,431 9 223 1,209 62,803 9 724 53,079 Rents-A&G Rents-A&G Increase (Decrease) 1,838,661 1 806 230 32,431 2,033,717 1794130 239,586 1,941,601 1 803 923 137,678 1,943,666 1 821 317 122,350 1,953,296 1 784 003 169,293 1,945,495 1 755 558 189,937 1,909,889 1 933 738 2,728,359 1 927 338 801,021 1,987,647 1 868 058 119,589 1,967,380 1 862 617 104,764 1,597,249 1 995 994 (398,745) (225,084) 23,467,695 22198724 1,268,971 912,397 378 679 533,718 890,848 383 861 506,987 877,319 414 328 462,991 868,539 404 882 463,657 860,772 422 396 438,376 859,782 415 749 444,033 867,984 411 317 456,667 854,164 404 199 449,965 844,280 432 478 411,802 862,018 367 947 494,071 858,498 167 489 691,009 914,790 369 479 545,311 10,471,391 4 572 804 5,898,587 695,850 304,595 746,919 153,949 (1,312,919) 241 292 63,302 287 586 459,332 381 313 (227,364) 332 422 (1,645,341) Maint General Plant-Elec Maint General Plant-Elec Increase (Decrease) Test Year Prior Year (219,539) October (3,626) 0935100 1199990 1199990 (267,135) August (16,211) Test Year Prior Year Test Year Prior Year (337,128) fil!d.! (4,132) A&G Rents-IC A&G Rents-IC Increase (Decrease) 0935200 0935200 (277,017) March (6,139) 0931008 0931008 Test Year Prior Year (283,365) Februarv 93,593 86 951 6,642 Test Year Prior Year 0935100 (247,710) 86,142 60 444 25,698 Test Year Prior Year Test Year Prior Year (275,194) Dues To Various Organizations Dues To Various Organizations Increase (Decrease) Director's Expenses Director's Expenses Increase (Decrease) 0930700 0930700 (263,565) (6,407) 0930240 0930240 Test Year Prior Year (254,584) Exp Of Servicing Securities Exp Of Servicing Securities Increase (Decrease) Test Year Prior Year September 4!!h'. (257,856) _M_., (278,107) June (265,358) Januarv Cust lnfor & Computer Control Gust lnfor & Computer Control Increase (Decrease) 492,336 141,735 948 987 184 739 (456,651) (43,004) 219 600 (380) 196 228 (32) 762,003 (1 449 816) 2,211,819 388 140 248 (1,691,061) 324 861 (2,015,922) 887 226 661 565 270 294 351 798 1,074 3 374 1179 456 618 (3,022) (381) 411 (631) 1,042 691 12,670 8 764 3,907 691,550 (1141 261) 1,832,811 3,523 1 091 2,432 7,397 7 401 (3) 89,407 (2,904) 1,620,735 1 845 819 312,942 1,387,306 388 618 536 271 (223,328) (466 562) 1,853,869 383 343 40 1,437 184 1,252 303,690,378 307 013 552 (3,323, 173) 265,005,277 340 717 720 (75,712,444) 261,425,792 299 094 165 (37 ,668,373) 226,063,386 264 475 722 (38,412,336) 235,904,765 249 984 145 (14,079,380) 286,103,841 304 771 596 (18,667,755) 315,426,179 311 318109 4,108,070 316,490,944 286 834 708 29,656,236 291,859,890 316 514 906 (24,655,016) 10,232 7 460 2,773 99 28 71 28 (28) 99 (6,518) (299,211) 99 Shared Services/Im Clearing Shared Services/Im Clearing Increase (Decrease) Total O&M Expenses Total O&M Expenses Increase (Decrease) (1 501 575) 2,197,425 (23,850) 9 306 (99,265) 102,091 101 400 253,974,401 269 918 947 (15,944,546) 242,996,252 250 729 812 (7' 733,560) 304,255, 137 298 529 929 5,725,208 3,303,196,241 3 499 903 310 (196,707,069) DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For The Calendar Years Ended December31, 2012 Through December31, 2016 Sub-Classification Classification Oracle Account ltemNo.12b PeopleSoftAccount Account Description %Change %Change FosOperSuperAndEng1neer Non-RegOperabonExpense Operation Supervision Engineering 500Total 501 5,673,979 Coal &OtherFuel Handling Fossil Steam Fuel FossilSteamFuelCoalFms Fossil Steam Fuel-Ash Sales 10,064,314 5,888,351 14,558 7,647,115 5,032,729 104,484 6,760,994 %Change %Change 10,242,493 11,143,446 2,845 10,245,338 5,049 11,148,495 609,946,356 4,146,830 450,356,574 %Change 6,510 8,823,917 1,188,799 394,686,440 26,010,275 3,294,460 Fossil Steam Fuel Oil Fms Coal Sampl1ngAndTesbng 30,004 Oil Consumed-Fossil Steam Oil Handling Expense Fuel 501Total 502 861,577,434 888,162,910 669,630,626 210,796 13,412,742 42,288 668,601,976 Ammonia Expense Ammonia-Qual1fy1ng Urea-Qual1fy1ng 650,407 Cost Of Lime Gypsum-Qual1fy1ng 591,422 7,291,750 410,031,825 4,214,619 10,580,495 MagHydrox1deQual1fy1ngReag Re-em1ss1onChemExp-Reagent 1,006,902 Calcium Carbonate 5,674,962 Steam Oper .Ammonia Steam Oper-L1mestone 8,655,404 12,427,664 9,506,772 1,634,100 2,040,402 3,044,569 BrjMbgat1onSharing 110,273 27,435,212 30,327,372 23,187,737 2,192,426 2,192,426 37,650,686 2,329,472 2,329,472 35,954,349 2,135,120 2,135,120 33,023,939 1,287,384 1,287,384 24,801,006 96,408 (715,262) 30,684,964 3,478 3,478 744,519 744,519 21,136,943 24,801,006 301,838 614,254 21,136,946 102,668 501,699 7,145,638 63,963 242,904 6,851,870 23,280,530 6,726,355 33,023,939 535,043 222,403 20,333,397 21,090,843 7,065,056 916,092 11,277,239 604,367 12,361,462 306,867 6,655,849 6,851,870 4,624,092 6,726,355 3,924,330 7,065,056 6,725,592 11,277,342 11,980,255 42,587 12,404,049 16,793,567 188,199 6,844,047 9,413,362 4,624,092 33,479,383 3,924,330 30,827,431 6,725,592 27,428,139 11,980,255 36,300,117 16,793,596 44,780,198 9,413,703 43,515,606 33,479,383 7,594,211 7,594,211 7,152,802 30,827,431 8,201,938 8,201,938 7,107,910 27,428,139 13,637,605 13,637,605 6,189,404 36,300,117 25,205,573 25,205,573 3,565,837 44,780,502 16,556,954 16,556,954 11,265,275 25,183 43,515,606 9,787,139 9,787,139 6,142,474 10,378 7,152,802 10,184,563 7,107,910 10,837,804 6,189,404 6,710,396 3,565,837 34,016,396 11,290,458 39,954,828 2,414 6,152,852 44,785,075 ReagentPurchaseSav1ngs By-Product Synergy Savings Steam Expenses Steam Transferred-Cr. Electric Expenses Miscellaneous Steam Power Expenses 502Total 504 504Total 505 505Total 506 FosMscSteamPowerExp 506Total 509 SulfurD1ox1deAllowances Nox Em1ss1onAllowance Exp Allowances Maintenance Supervision and Engineering Maintenance of Structures 509Total 510 510Total 511 FosMainSuperAndEng1neer DeferredO&M-Nc SuprvsnAndEngrng-SteamMa1nt-Rec FosMa1ntOfStruct Ma1ntOfStructures-Steam-Recoverable 511Total FosMa1ntOfBoilerPlant Ma1ntOfBoilerPlant-Other-Recoverable Maintenance of Boiler Plant 512Total Maintenance of Electric Plant 513Total 514 FosMa1ntOfElectricPlant MaintenanceofMiscellaneousSteamPlant Nuclear Power Generation Operation Supervision Engineering 514Total 517 FosMa1ntOfMscSteamPlant Ma1ntenance-M1scSteamPlant NucOperSuperAndEng1neer SupAndEng1neer-Nc 517Total 6,710,396 211,991 23,111,111 84,862 84,862 7,145,638 44,785,075 NuclearFuel-LastCoreAmort 2,177,075 NuclearFuel Msc&Labor Nuclear Fuel -CanisterAmort Nuclear Fuel -Other Charges Nuclear Fuel. S&UAmort NucFuel-BurnedAfudcEqu1ty NucFuel-BurnedAfudcDebt 166,445,546 50,644 170,948,847 80,005 196,415,200 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For The Calendar Years Ended December31, 2012 Through December31, 2016 Sub-Classification Classification Fuel Coolants and Water Steam Expenses Oracle Account ltemNo.12b PeopleSoftAccount Account Description Nuclear Fuel Synergy Savings NuclearFuel-WasteD1sposal 518Total 519 519Total 520 520Total Electric Expenses 523Total 524 Miscellaneous Nuclear Power Expenses 524Total NucCoolantsAndWater NucMa1ntSuperAndEng1n Maintenance Supervision and Engineering 528Total Maintenance of Structures 529Total MaintenanceofReactorPlantEquipment 530Total Maintenance of Electric Plant 531Total NucMa1ntOfStructures NucMa1ntOfReacPlantEqu1p Ma1nReactorPltEqNuc-Sc NucMa1ntOfElectr1cPlant Nuc Ma1ntOf Misc Nuc Plant Ma1nMscNucPlt-Nc Ma1nMscNucPlt-Sc MaintenanceofMiscellaneousNuclearPlant Hydraulic Power Generation Operation Supervision Engineering 532Total HydroOperSuperAndEng1neer 535Total Hydro Water For Power Water for Power 536Total Hydraulic Expenses 537Total Electric Expenses 538Total Miscellaneous Hydraulic Power Generation Expenses Maintenance Supervision and Engineering Maintenance of Structures 539Total 540 540Total 541 541Total 542 542Total Maintenance of Electric Plant MaintenanceofMiscellaneousHydraulicPlant Other Power Generation Operation Supervision and Engineering 543Total 544 544Total 545 545Total 546 546Total 547 547Total 548 HydroMa1ntSuperAndEng1neer HydroMa1ntOfStructures HydroMa1ntOfElecPlant Ma1nt-MscHydraul1cPlant HydroMa1ntMscHydrol1cPlan CtOperSuper And Engineer o" 548Total 1,184,508 173,309,480 20,188,412 20,188,412 49,721,067 49,721,067 4,504,006 4,504,006 179,669,665 250,740 764,543 199,311,766 20,399,547 20,399,547 50,372,305 50,372,305 6,133,709 6,133,709 170,973,633 165,124,018 24,588,001 24,588,001 40,383,843 40,383,843 15,346,342 15,346,342 199,460,424 169,998,538 27,161,736 27,161,736 27,827,669 27,827,669 13,703,014 13,703,014 185,549,057 175,884,173 35,667,930 35,667,930 15,290,741 15,290,741 56,140,107 199,460,424 57,074,846 57,074,846 24,882,373 24,882,373 91,972,942 185,549,057 69,137,912 69,137,912 25,881,415 25,881,415 80,834,116 154,707,904 35,607,020 35,607,020 28,596,615 28,596,615 102,637,238 56,140,107 15,426,632 15,426,632 31,499,752 91,972,942 48,798,692 48,798,692 38,736,166 80,834,116 33,982,005 33,982,005 39,203,371 102,637,238 39,243,133 39,243,133 91,892,197 31,499,752 653,370 653,370 62,500 62,500 680,863 38,736,166 612,243 612,243 62,500 62,500 725,100 39,203,371 544,236 544,236 67,708 67,708 360,121 91,892,197 1,092,546 1,092,546 57,760 57,760 327,308 (327,304) 680,863 650,684 650,684 1,078,175 725,100 744,341 744,341 1,145,642 360,121 812,456 812,456 933,927 1,010,882 1,010,882 1,286,527 69,976,296 1,659,500 1,659,500 62,500 62,500 145,639 (456,512) {310,873) 540,179 540,179 1,156,120 1,078,175 1,145,642 933,927 1,286,527 1,156,120 789,899 265,097 265,097 208,746 208,746 455,349 323,898 323,898 101,256 101,256 467,545 289,160 289,160 239,287 239,287 331,906 366,382 366,382 456,259 456,259 1,294,944 350,216 350,216 232,968 232,968 1,190,676 218,008 218,008 331,428 331,428 1,439,806 455,349 510,804 510,804 467,545 693,728 693,728 331,906 724,152 724,152 1,310,612 1,355,857 1,269,666 1,294,944 599,306 599,306 629,434 5,368 1,190,676 497,265 497,265 1,248,246 20,775 1,439,806 456,821 456,821 2,217,810 17,093 1,310,612 5,705,070 5,705,070 421,512 1,355,857 7,929,160 7,929,160 409,707 1,269,666 11,767,431 11,767,431 449,706 (160,164) 671,848,101 (4,279,408) 634,802 3,204,173 3,204,173 133,785 1,269,021 5,993,988 5,993,988 103,354 2,234,904 4,459,099 4,459,099 27,344 (10,566,662) (170,504) 473,560 45,500,140 866,968,251 290,839 691,629 (129,570) 576,304 8,953,836 679,990,220 231,516 24,808 179,702,112 79,389,689 79,389,689 22,903,584 22,903,584 96,855,480 2,958 96,858,438 46,574,844 46,574,844 69,973,947 170,974,243 72,169,715 72,169,715 25,715,675 25,715,675 67,424,165 67,425,120 48,809,983 48,809,983 61,211,202 2,293 441,044,809 370,150,235 439,419,550 667,858,235 200,360 1,369,838 1,591,014 303,404 1,894,418 317,883 3,343,412 Ammonia-Qual1fy1ng GenerabonExpenses-OtherCt Ct Gen Exp-Ammonia Generation Expenses %Change (3,817) 160,403,575 18,621,769 18,621,769 8,694,580 8,694,580 10,354,985 10,354,985 175,884,173 CtFuelFms Fuel 44,377 433,377 183,366,490 20,342,002 20,342,002 34,874,979 34,874,979 8,527,753 8,527,753 154,703,185 4,719 %Change 70,479 .7771925% 61,211,282 1,812,177 1,812,177 62,500 62,500 137,421 (361,146) {223,724} 91,095 91,095 789,899 Rents-HydroOper Hydro Ma1ntRes Dams And Water MaintenanceofReservoirs,Dams,and Waterways %Change 403,039 52,326,165 834,476,730 303,108 1,994,521 3,040,302 3,766,662 4,159,548 3,098,072 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For The Calendar Years Ended December31, 2012 Through December31, 2016 Classification Sub-Classification Miscellaneous Other Power Generation Expenses Oracle Account ltemNo.12b PeopleSoftAccount Account Description CtMscOtherPowerGenEx Maintenance Supervision and Engineering 549Total 551 551Total Maintenance of Structures 552Total MaintenanceofGeneratingandElectricPlant 553Total 554 CtMa1ntSuperAndEng1neer CtMa1ntOfStructures CtMa1ntOfGenAndElecPlant MaintenanceofMiscellaneousOtherPower Generation Plant Ct Ma1nt Misc 0th Pwr Gen Pl OtherProducbonMa1ntenance Ma1ntMscGenPlt 554Total %Change %Change %Change %Change %Change 6,834,000 6,113,507 8,123,073 12,100,349 15,031,798 13,150,559 6,834,000 744,338 744,338 901,533 901,533 17,858,308 6,113,507 729,801 729,801 1,732,395 1,732,395 21,042,540 8,123,073 1,237,771 1,237,771 1,582,893 1,582,893 19,983,034 12,100,349 4,209,734 4,209,734 5,481,381 5,481,381 20,373,346 15,031,798 4,752,939 4,752,939 4,282,513 4,282,513 9,897,418 13,150,559 4,283,381 4,283,381 7,770,653 7,770,653 30,672,706 17,858,308 6,257,060 21,042,540 7,249,685 19,983,034 7,593,406 20,373,346 11,784,113 9,897,418 11,729,341 30,672,706 15,416,253 6,257,060 7,249,685 15,050,866 7,593,406 120,316,123 11,784,347 136,123,228 132,254,000 11,729,341 51,678,839 146,063,485 15,416,253 38,331,512 139,490 200,104,902 24,665 37,848 l/CJ01ntD1sp-PurPwr 41,200,052 Interchange Power Interchange Power Cogenerat1on 96,701,955 101,064,827 Purchases Power SysControlAndloadD1spatch SystemControlandloadDispatching 556Total Ne Deferred Fuel Expenses AmerElec-Rockport230KvCont 315,335,005 3,161,554 3,161,554 244,796 355,867,645 3,508,842 3,508,842 364,733 69,115 430,562,658 1,411,430 1,411,430 77,002,059 130,271 485,581,582 1,629,675 1,629,675 84,847,772 (41,786,192} 111,404 111,404 2,576,757 2,576,757 2,361,588 7,200 16,375 170,193,106 48,555 48,555 2,913,179 2,913,179 1,809,906 12,600 7,795 145,624,149 (4,530) (4,530) 2,436,540 2,436,540 2,191,336 421,545,592 4,334,182 63,619 496,584,367 1,004,745 (6,436,606) (110,565,443) 2,214,766 34,401,466 (11,240,965) 28,969,238 1,438,001 1,438,001 2,493,825 2,493,825 32,530,613 995,861 995,861 2,955,267 2,955,267 {16,480,246} 1,295,818 1,295,818 1,796,187 1,796,187 7,200 Other Expenses Transmission Expenses Operation Supervision and Engineering Load Dispatch-Reliability 557Total 560 560Total 5611 561.lTotal 5612 TransOperSuperAndEng1neer LoadD1spatch-Rel1ab1l1ty 833,481 949,503 1,013,374 833,588 1,073,383 949,503 1,206,880 1,013,374 2,296,333 2,361,588 760,937 1,809,906 830,944 2,191,336 940,162 1,073,383 914,711 1,206,880 999,716 2,296,333 674,213 760,937 400,981 830,944 940,162 292,406 914,711 999,716 674,213 400,981 36,476 36,476 141,102 141,102 1,111,208 1,111,208 1,435,711 1,435,711 Load Dispatch-Monitor and Operate Transmission System Load Dispatch-Transmission Service and Scheduling Reliability, Planning ands Standards Development Transmission Service Studies Generation Interconnection Studies 561.2Total 561.3Total 5615 561.5Total 5616 561.6Total 5617 561.7Total Station Expenses 562Total Overhead Lines Expenses 563Total Rel1abil1ty, Plan&Standards Genlnterconnect1onStud1es 631,939 631,939 Wheeling Charges Tariff Expense Trans Of Elect-Purchase l/CJ01ntD1sp-TransNwExp TransmissionofElectricitybyOthers Miscellaneous Transmission Expenses 780,553 780,553 623,631 35,268 35,268 668,621 668,621 726,365 2,499 2,499 99,546 99,546 2,154,976 2,154,976 1,159,007 1,159,007 292,406 (94,892) {94,892} (16,221) {16,221} 1,465,991 1,465,991 844,247 844,247 10,310 565Total 566 320,845 37,979,019 7,685,889 10,310 6,239,548 566Total 7,685,889 6,239,548 6,885,154 30,914 6,916,068 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For The Calendar Years Ended December31, 2012 Through December31, 2016 Classification Sub-Classification Oracle Account ltemNo.12b PeopleSoftAccount Account Description %Change 567Total TransMa1ntSuperAndEng1neer Maintenance Supervision and Engineering Maintenance of Structures Maintenance of Computer Hardware 568Total 569 569Total 5691 569.lTotal 569.2Total Maintenance of Communication Equipment 569.3Total 570 Ma1nt Of Computer Hardware Ma1ntOfCommunicabonEqu1p Maintenance of Station Equipment Maintenance of Overhead Lines 570Total 571 571Total Maintenance of Underground Lines 572Total 2,445,665 2,445,665 68,995 68,995 160,241 160,241 308,700 71,053 71,053 149,444 149,444 322,476 TransMa1ntOfStructures Ma1ntOfComputerSoftware Maintenance of Computer Software %Change 1,211,870 1,211,870 25,114 25,114 TransMa1ntOfOverheadL1nes 56,932 56,932 168,810 168,810 265,717 LoadD1spatch1ng Load Dispatching 581Total Station Expenses 582Total D1stStat1onExpenses RelaysAndMeters-D1st Overhead Lines Expenses 583Total D1stUnderL1ne Expenses Underground Line Expenses 584Total StreetlightingandSignalSystemExpenses 585Total Meter Expenses 586Total Customer Installations Expenses 587Total Miscellaneous Expenses 588Total D1stCustlnstallExpenses D1stMscExp MscD1str1bubonExp-Other 589Total 590 Maintenance Supervision and Engineering MaintenaceofStructures 590Total 591 591Total Maintenance of Station Equipment 592Total D1stMa1ntSuperAndEng1neer D1stMa1ntOfStructures D1stMa1ntOfStabonEqu1p D1stMa1ntOfOverheadL1nes R1ght-Of-WayMa1ntenance-D1st Maintenance of Overhead Lines Maintenance of Underground Lines 593Total 594 594Total D1stMa1ntOfUnderL1nes D1stMainOfL1neTransformers MaintenanceoflineTransmformers MaintenanceofStreetlightingandSignal Systems 595Total 596 Maintenance of Meters 596Total 597 597Total Maintenance of Miscellaneous Distribution Plant Customer Account Expenses Supervision 598Total 901 901Total D1stMainOfStrlgt&S1gnSy D1stMa1ntOfMeters Ma1ntOfMscD1str1bPlant 10,142 231,404 5,368,386 5,599,790 23,519,116 23,519,116 (1,192) {1,192) (759,297) 321,941 2,074,715 2,074,715 5,409,817 5,409,817 1,451,655 40,096 1,491,751 207,125 905,220 1,112,345 3,521,477 3,521,477 78,716 84,612 1,296,078 1,296,078 6,006,770 6,006,770 1,475,077 44,107 1,519,184 138,734 606,839 745,573 4,081,995 4,081,995 11,103 (759,297} 717,977 717,977 5,214,815 5,214,815 1,231,257 110,267 1,341,524 134,171 56,904 191,075 4,712,175 4,712,175 10,276 78,716 2,966,205 2,966,205 2,821,470 2,821,470 19,021,125 11,103 3,821,334 3,821,334 1,639,608 1,639,608 22,929,206 10,276 7,511,340 7,511,340 2,013,972 2,013,972 25,567,942 19,021,125 3,957,561 3,957,561 2,362 22,929,206 2,669,866 2,669,866 13,916 25,567,942 2,533,934 2,533,934 8,189 13,916 15,336 15,336 1,740,456 3,092,362 4,832,818 70,629,379 185,922 70,815,301 5,153,125 5,153,125 836,791 71,292 908,083 6,979,238 8,189 1,296 1,296 1,718,022 2,359,027 4,077,049 96,085,107 259,549 96,344,656 4,822,769 4,822,769 772,683 25,978 798,660 6,812,010 15,055,322 15,055,322 2,500,046 2,500,046 1,133,794 14,870,744 14,870,744 3,169,484 3,169,484 1,171,392 96,831 16,139,786 16,139,786 3,845,689 3,845,689 1,286,495 1,133,794 1,171,392 1,286,495 2,469,541 2,469,541 2,569,038 2,569,038 2,740,930 2,740,930 1,782,406 1,782,406 4,002,821 4,002,821 1,031,807 1,031,807 3,018,575 3,018,575 1,226,682 1,226,682 27,244,509 3,152,686 3,152,686 1,283,817 1,283,817 24,272,721 27,244,509 3,846,651 3,846,651 213,261 24,273,572 3,937,176 3,937,176 339,433 875,796 875,796 1,482,621 1,482,621 22,017,691 642,370 22,660,061 3,965,646 3,965,646 997,549 213,261 16,748 16,748 2,958,086 339,433 24,020 24,020 5,960,352 997,549 14,380 14,380 3,972,290 2,958,086 72,475,045 5,960,352 50,668,275 3,972,290 59,187,922 72,475,045 3,182,318 3,182,318 864,193 50,668,275 3,848,170 3,848,170 817,610 59,187,922 4,048,060 4,048,060 719,993 864,193 2,595,850 817,610 2,961,313 719,993 2,851,422 2,362 (3,971) {3,971) 2,789,155 3,180,029 5,969,184 110,965,391 (911,080) 110,054,311 4,871,607 4,871,607 376,835 43,028 419,863 7,538,176 2,595,850 854,022 854,022 1,981,188 2,961,313 846,882 846,882 2,029,989 2,851,422 804,888 804,888 2,226,651 7,538,176 1,961,780 1,961,780 5,053,764 6,979,238 1,717,984 1,717,984 3,479,012 6,812,010 1,801,325 1,801,325 1,426,022 1,981,188 815,646 815,646 2,029,989 1,047,273 1,047,273 2,226,651 1,390,770 1,390,770 5,053,764 448,770 448,770 3,479,012 202,113 202,113 1,426,022 281,077 281,077 96,831 D1stStlgt&S1gnal Sys Exp Dist Meter Expenses 28,649 551,322 4,190,787 4,742,109 13,679,133 13,679,133 272,726 272,726 84,612 322,476 11,365,973 11,365,973 30,211,542 30,211,542 TransfSetRemResetTest-D1st D1stOverheadL1neExpenses 765,389 5,408,838 6,174,227 28,081,297 28,081,297 15,171 15,171 321,941 308,700 9,017,065 9,017,065 19,797,922 19,797,922 573Total D1stOperSuperAndEng1neer 95,951 95,951 3,502 3,502 280,089 280,089 27,684 27,684 2,735,383 2,735,383 10,142 265,717 Ma1ntenanaceOfUndergroundL1nes 580Total %Change %Change 1,663,464 1,663,464 3,795 3,795 807,975 807,975 4,845 4,845 2,162,739 2,162,739 28,649 4,924,114 4,924,114 15,349,677 15,349,677 TransMa1ntOfMscEqpt Maintenance of Miscellaneous Transmission Plant Distribution Expenses Operation Supervision and Engineering %Change 2,470,827 2,470,827 381,372 381,372 973,778 973,778 93,958 93,958 2,405,118 2,405,118 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For The Calendar Years Ended December31, 2012 Through December31, 2016 Sub-Classification Classification Meter Reading Expenses Oracle Account ltemNo.12b PeopleSoftAccount Account Description CustAccountsMeterReadExp 902Total 903 %Change 5,349,422 5,349,422 22,868,947 5,503,921 5,503,921 22,374,021 %Change 5,441,029 5,441,029 25,491,392 %Change 4,773,304 4,773,304 4,961,712 12,297,010 CustomerRecordsandCollectionExpenses UncollectibleAccounts MiscellaneousCustomerAccountExpenses CustomerServiceandlnformationalExpenses Supervision 903Total 904 22,868,947 22,374,021 25,491,392 904Total 905 10,238,979 10,238,979 2,647,283 6,089,379 6,089,379 2,673,983 9,032,359 9,032,359 2,801,514 905Total 907 907Total 2,647,283 476,876 476,876 2,673,983 406,806 406,806 2,801,514 251,619 251,619 BadDebtExpense %Change 266,099 13,284 1,556 4,468,044 4,468,044 11,568,545 12,241,651 6,390,111 5,004,055 302,015 8,574 32,488,690 315,604 10,661,328 10,976,932 600,271 35,535,783 592,668 11,924,424 12,517,092 730,728 35,514,950 302,907 6,669,543 6,972,450 663,023 600,271 730,728 663,023 CustBill1ngAndAcct Common-Operat1ng-CustAccts %Change 3,944,389 3,944,389 9,507,720 10,448,744 6,150,475 9,064,260 10,016 2,448 Econom1cDevelopment CustAsstExp-Conservat1onPrg Customer Assistance Expenses 908Total 909 Miscellaneous Customer Service and Informational Expenses Sales Expenses Supervision Demonstrating and Selling Expenses 909Total 910 910Total 911 911Total 912 15,042 35,210,656 38,022,013 43,516,155 46,011,879 1,097,106 1,097,106 1,076,508 1,894,269 1,894,269 941,630 3,108,706 3,108,706 2,048,160 1,076,508 941,630 27,761 27,761 Demonstrabon&Sell-ProJ Supt-NcrcRec DemonstrabngAndSell1ng 912Total Advert1s1ng Advertising Expenses Miscellaneous Sales Expenses Administrative and General Salaries Administrative and General Salaries 913Total 916 916Total 920 920Total 921 18,491 5,832 lnfo&lnstrucAdv-Conservat1onProg-Rec lnfoAndlnstrucAdverbs1ng lnfo&lnstrucAdJ.ConservProg Informational and Instructional Expenses 41,414,296 43,961,564 995,000 995,000 69,967,969 A&G Off Supplies And Expenses A&G Ms Cmptr Rprs 69,967,969 27,025,684 280,523 4,182,686 266,907 3,402,146 81,137 363,336 4,030,014 2,048,160 4,463,209 3,669,053 4,393,350 71,967 71,967 523,183 523,183 942,372 942,372 82,246,188 149,860 149,860 387,641 387,641 1,262,126 1,262,126 114,152,427 3,565,744 3,566,111 434,861 434,861 170,016 170,016 74,012,399 5,298,702 5,298,702 190,167 190,167 135,150 135,150 100,816,624 5,976,581 5,976,581 314,113 314,113 16,591 16,591 116,700,850 82,246,379 48,006,380 2,134,424 114,152,812 46,712,058 9,112,691 74,012,399 12,781,379 100,816,653 10,353,065 116,700,862 8,411,662 4,226,419 7,707 1,742 124,007 Other OffSuppl1es&Exp-ProJ Supt-NcrcRec 26,460,045 D1str1bubonSysOps-Supv/Eng GasD1str1bubon-OtherExpense Office Supplies and Expenses 921Total 27,025,684 Adm1nExpTransfer Adm1nExpTransf-Construct1on Administrative Expenses Transferred-Credit 922Total Outs1deServ1cesEmployeeAnd A&G Outside Services Emp 51,043,655 1,349 58,739,852 49,951,505 47,800,250 564,996 116,058 43,547,509 78,797 1,349 78,843 44,051,375 1,905,717 44,223,480 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For The Calendar Years Ended December31, 2012 Through December31, 2016 Classification Sub-Classification Oracle Account PeopleSoft Account Outside Services Employed Property Insurance Injuries and Damages ltemNo.12b FERCAccount Account Description 923Total 924 A&GPropertylnsurance AllocPescProplnsExp l/CProplnsExp ProplnsForCorpExp 924Total A&G Injuries And Damages l/CGenL1abExp lnJuriesAndDamages-Other Environmental lnJAndDamages Injuries And Damages 925Total 926 A&G Employee Pens And Ben A&GPen;Ben-L1fe Ins A&GPen;Ben-Apbc A&GPen;Ben-Rec&Edu Employees'Tu1bonRefund %Change 20% 2013 67,849,923 1,838,029 %Change 5. . 36,836,562 12,409,379 44,051,375 12,150,532 12,409,379 12,347,116 449,683 18,639,321 8,716,611 50% 2,428,049 17,366,993 2,937,009 .7% 12,347,116 139,101,028 1,099,097 10,868,773 216,065,374 .12% 4,564,778 10,514,787 136,629,188 .3% Franchise Requirements Regulatory Commission Expenses Duplicate Charges-CR General Advertising Expenses 926Total 927 927Total 928Total 929 929Total 9301 930.lTotal 139,101,028 216,065,374 6,454,258 6,163,674 6,454,258 GenAdvert1s1ngExp (17,920,452) {17,920,4521 1,776,256 1,776,256 6,821,276 6,163,674 55% "" .5% (29,712,134) {29,712,13~ 466,855 466,855 8,203,434 .. 66% ., 136,629,217 14 14 6,369,799 6,369,799 (42,523,890) {42,523,8901 289,122 289,122 (26,013,190) .37% 0% 3% 43% Buy\SellTransfEmployeeHomes Research And Development RAndD .Alternative Energy A&GRents AAndGRentslc 931Total CustlnforAndComputerControl Ma1ntOfGeneral Plant Maintenance of General Plant Grand Total Note(s): Detail amounts may not add to totals shown due to rounding. 935Total .4% .16% 6,821,276 8,045,824 8,446,829 11,492,688 24% 8,045,824 11,492,688 43% 2,125,948 2,125,948 2,912,515,602 5,181,935 5,181,935 3,339,390,226 144% 15% {25,016,302} 5,978,108 5,978,108 833,866 {833,866) 3,270,024,227 342 12,407 ',580) ;,981 78,470,717 305 305 7,564,318 21,227 535 7,585,010 (8,190,150) (15,892,524) 2079"Ai {24,082,67~ .43% .43% %Change .7% 9,393,000 18,283,752 13,218,334 3,477,000 770,771 548,553 309,740 18,324,398 39,168,308 2016 46,129,197 7,806,000 10% 106% .396% .48% .116% .2% 875,918 147,947 368,626 1,007,175 9,588,542 847 188,775 1,186,622 72,185 {13,524,797) 19,990,848 7,492,125 27,482,973 11,538 1,070,243 1,081,781 3,508,501,416 1,246 10,407 63,388 9,893,472 49,136,821 .37% 18,253,708 7,480,616 4,280,061 289,884 16,348,147 75,098,778 19% 12,219,802 87,327,117 .lOCl"Ai 8,056,044 3,299,438 DuesT0VariousOrgan1zabons Miscellaneous General Expenses 16,689,829 4,193,225 3,748,000 459,360 136,827 342,175 8,879,587 77,678,567 2015 61,478,095 29 Employee Benefits-Transferred Employee Pensions and Benefits 2014 %Change 66,250,118 .2% 7,076,105 (190,276) 9,804,000 1,194 8,057,238 (3,492,937) (13,246,613) {16,739,5501 2,742,401 7,495,555 6% 7,495,555 (3,226,558) 16,884 .3 . . {3,209,67~ 2,196,396 773,579 162,294 360,792 1,075,146 8,534, .46% 360% .23Cl"Ai 7% 73. 1,336, 90. {16,812, 22,198,724 4,572,804 26,771,528 7,460 466,562 (459,102} 3,499,903,310 .3% .142"Ai "" 23,467,695 10,471,391 33,939,086 10,232 1,387,306 1,397,539 3,303,196,241 %Change .25% DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For The Calendar Years Ended December 31, 2012 Through December 31, 2016 Classification Sub-Classification Steam Power Generation Oracle Account ltemNo.12b Account Description PeopleSoft Account 5000000 4011012 500 Operation Supervision Engineering Fos0per5uperAndEngineer Non-Reg Operation Expense Fossil0per5uperv&Engineer-Recoverable 500Total 5012000 0501150 501 501300A 0501110 501 5013100 0501110 501 0501180 501 0501182 501 0501310 501 Fuel Coal&OtherFuel Handling Fossil Steam Fuel Fossil5teamFuelCoalFms Fossi1SteamFuel-Ash5ales Coa1Purchase5avings FossilSteamFuelOilFms Coal5amplingAndTesting SaleOfFlyAsh-Revenues ContraFuelExpPondAsh-5c ContraFuelExpPondAsh-W/S 5aleOfFlyAsh-Expenses Oil Consumed- Fossil Steam OilHandlingExpense 502 0502040 502 0502080 502 0502090 502 5020001 0502100 502 5020003 0502100 502 0502102 502 0502161 Steam Expenses 0504000 Steam Transferred-Cr. 5050000 0505000 5060000 0506000 ElectrlcExpenses Miscellaneous Steam Power Expenses 502 502Total 504 504Total 505 505Total 506 Ammonia Expense Ammonia-Qualifying Urea-Qualifying Cost Of Lime Gypsum-Qualifying MagHydroxideQualifyingReag Re-emission Chem Exp- Reagent Calcium Carbonate Fos5teamExpenses Steam Oper -Ammonia 5team0per-Limestone SteamOper-GypsumDisposal/51e Magnesium Hydroxide Expense Bt1Mitigation5haring ReagentPurchase5avings By-Product5ynergySavings 0509212 Allowances 509 Maintenance Supervision and Engineering 510 Maintenance of Structures 5120000 0512100 511 511Total 512 Maintenance of Boiler Plant 512Total Maintenance of Electric Plant 513Total Fas Electric Expenses FosMisc5teamPowerExp MiscFossilPowerExpenses-Recoverable 5ulfurDioxideAllowances NoxEmissionAllowanceExp Recs Expense FosMain5uperAnd Engineer DeferredO&M-Nc 5uprvsnAndEngrng-5teamMaint-Rec FosMaint0f5truct Maint0f5tructures-5team-Recoverable FosMaintOfBoilerPlant MaintOfBoilerPlant-Other-Recoverable FosMaintOfElectricPlant FosMaint0fMisc5teamPlant Maintenance-Misc5teamPlant MalntenanceofMlscellaneousSteamPlant Nuclear Power Generation 514Total 517 5170000 0517000 5182300 0518530 518 5183000 0518100 518 5183300 0518100 518 Operation Supervision Engineering 10,064,314 830,297,610 21,215,511 888,162,910 4% 3% 5,032,729 104,484 6,760,994 618,298,937 26,010,275 3,717,361 14,738,575 669,630,626 9,572,367 7,573,342 8,655,404 8,247,845 7,501,188 12,427,664 5,799,866 4,918,891 9,506,772 1,634,100 2,040,402 3,044,569 110,273 (82,361) 30,327,372 11% 23,187,737 %Change 10,242,493 -15% -25% -24% 2,845 10,245,338 NucOperSuperAnd Engineer 5upAndEngineer-Nc 517Total NudearFuel-LastCoreAmort NuclearFuel-Misc&Labor NudearFuel-CanisterAmort Nuclear Fuel- Other Charges Nuclear Fuel - 5&U Amo rt NucFuel-BurnedAfudcEquity NucFuel-BurnedAfudcDebt 2,192,426 2,192,426 37,650,686 2,329,472 2,329,472 35,954,349 6% 2,135,120 2,135,120 33,023,939 -8% %Change 104% 5,049 11,148,495 %Change 8,817,407 11,143,446 "' 6,510 8,823,917 1,188,799 6,210,939 609,946,356 4,146,830 450,356,574 394,686,440 9,186,109 5,119,985 3,294,460 30,004 29,562,742 31,948 12,032,985 (1,282,237) (118,259) 121,555 9,496,882 8,073 262,345 38,886 118,259 3,142,814 7,291,750 210,796 13,412,742 42,288 668,601,976 5,965,762 650,407 13,423,810 591,422 3,644,508 479,906,263 265 4,214,619 1,291,813 12,504,753 (272,684) 3,413,731 1,006,902 8,137,509 1,780,472 8,370,849 (133,128) (194,624) 1,992,456 35,085,655 0% 0% 510Total 0511200 S,888,351 14,558 7,647,115 858,811,507 20,931,345 758,384 %Change 5,032,660 0% 51% Steam Transferred-Credit 509Total 0510001 S,673,979 27,435,212 506Total 5090002 5,888,351 861,577,434 501Total 0502020 %Change 5,673,979 0% 1,287,384 1,287,384 24,801,006 -40% 96,408 715,262 30,684,964 3,478 3,478 744,519 744,519 21,136,943 -28% 410,031,825 -21% -15% 3,014,508 1,028,737 10,580,495 (896,110} 2,433,109 117,168 1,306,928 5,674,962 -13% (360,676) 211,991 23,111,111 0% -42% -25% -100% 84,862 84,862 7,145,638 -89% 3 -5% 33,023,939 535,043 222,403 20,333,397 21,090,843 7,065,056 -8% 24,801,006 301,838 614,254 -25% 21,136,946 102,668 501,699 -15% 7,145,638 63,963 242,904 -66% -9% 916,092 11,277,239 103 -96% 604,367 12,361,462 -34% 306,867 6,655,849 -49% 3,786,145 6,851,870 35,954,349 1,152,063 813,588 21,314,879 23,280,530 6,726,355 6,851,870 4,624,092 6,726,355 3,924,330 -2% 7,065,056 6,725,592 5% 11,277,342 11,980,255 60% 4,624,092 33,479,383 3,924,330 30,827,431 -15% 6,725,592 27,428,139 71% 11,980,255 36,300,117 78% 16,793,596 44,780,198 33,479,383 7,594,211 7,594,211 7,152,802 30,827,431 8,201,938 8,201,938 7,107,910 -8% 27,428,139 13,637,605 13,637,605 6,189,404 -11% 36,300,117 25,205,573 25,205,573 3,565,837 32% 44,780,502 16,556,954 16,556,954 11,265,275 25,183 7,152,802 10,184,563 7,107,910 10,837,804 -1% 6,189,404 6,710,396 -13% 3,565,837 34,016,396 -42% 10,184,563 10,837,804 6% 6,710,396 -38% 34,016,396 407% 126,738 7,248,611 134,307,048 84,566 1,518,549 552,329 133,630,291 50,644 1,763,922 534,207 37,650,686 2,389,189 1,396,956 515% 8% 2,177,075 3,183,831 139,806,078 32,811 2,039,103 642,823 66% 395,211 1,184,089 166,445,546 85% 42,587 12,404,049 16,793,567 " 11,290,458 39,954,828 2,414 39,957,242 239,022 216,832 170,948,847 10% 40% 23% -34% 188,199 6,844,047 9,413,362 342 9,413,703 43,515,606 43,515,606 9,787,139 9,787,139 6,142,474 10,378 -45% -44% -3% -41% 217% 6,152,852 44,785,075 -46% 17% 44,785,075 12% 501,628 80,005 196,415,200 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For The Calendar Years Ended December 31, 2012 Through December 31, 2016 Classification Sub-Classification Oracle Account 5188000 ltemNo.12b PeopleSoft Account 0518500 0518600 518 0518620 518 Fuel 518Total Coolants and Water 519Total Steam Expenses 520Total Electric Expenses 523Total Account Description NudearFuelSynergySavings Nuclear Fuel-Waste Disposal Canister Expense-Mcguire Bruns Canister Design Expense 24MonthFuelCyde NucCoolantsAndWater NucSteamExpenses NucElectricExpenses 0524001 524 Miscellaneous Nuclear Power Expenses 524Total Maintenance Supervision and Engineering 528Total Maintenanceof5tructures 529Total Nuc Misc Nudear Power Exp MiscExpNuc-Nc MiscExpNuc-Sc NucMaintSuperAnd Engin NucMaintOfStructures 0530002 530 0531100 530Total 531 531Total MalntenanceofReactorPlantEqulpment 5310000 MalntenanceofElectrlcPlant 5320000 0532100 532 0532102 532 MaintenanceofMiscellaneousNuclearPlant Hydraulic Power Generation Operation5upervisionEngineering NucMaintOfReacPlantEquip MainReactorPltEqNuc-Sc NucMaintOfElectricPlant NucMaintOfMiscNucPlant MainMiscNucPlt-Nc MainMiscNucPlt-Sc 532Total HydroOperSuperAnd Engineer 535Total Hydro Water For Power Water for Power 536Total 537 0538100 537Total 538 538Total Hydro Electric Expenses 539 HydroMiscHydraulicPowerGen HydraullcExpenses 5380000 ElectrlcExpenses 5390000 Hydraulic Expenses Recreation Expenses- Hydro 0537400 0539000 Mlscellaneous Hydraullc Power Generation Expenses 539Total %Change %Change 23,814,345 21,896,343 160,403,575 18,621,769 18,621,769 8,694,580 8,694,580 10,354,985 10,354,985 175,884,173 165,124,018 24,588,001 24,588,001 40,383,843 40,383,843 15,346,342 15,346,342 199,460,424 175,884,173 35,667,930 35,667,930 15,290,741 15,290,741 56,140,107 199,460,424 57,074,846 57,074,846 24,882,373 24,882,373 91,972,942 56,140,107 15,426,632 15,426,632 31,499,752 91,972,942 48,798,692 48,798,692 38,736,166 31,499,752 653,370 653,370 62,500 62,500 680,863 38,736,166 612,243 612,243 62,500 62,500 725,100 680,863 650,684 650,684 1,078,175 725,100 744,341 744,341 1,145,642 1,078,175 1,145,642 22,116,817 3% 32% 364% 48% 13% 60% 63% 64% 216% 23% -6% 0% 6% 14% 6% 169,998,538 27,161,736 27,161,736 27,827,669 27,827,669 13,703,014 13,703,014 185,549,057 185,549,057 69,137,912 69,137,912 25,881,415 25,881,415 80,834,116 80,834,116 33,982,005 33,982,005 39,203,371 39,203,371 544,236 544,236 67,708 67,708 360,121 3% 10% -31% -11% -7% 21% 4% -12% -30% 1% -11% 8% 360,121 812,456 812,456 933,927 -50% 933,927 -18% 9% %Change 4,287,276 8,090,428 2,486,186 44,377 433,377 183,366,490 20,342,002 20,342,002 34,874,979 34,874,979 8,527,753 8,527,753 154,703,185 4,719 154,707,904 35,607,020 35,607,020 28,596,615 28,596,615 102,637,238 102,637,238 39,243,133 39,243,133 91,892,197 91,892,197 1,092,546 1,092,546 57,760 57,760 327,308 327,304 4 1,010,882 1,010,882 1,286,527 1,286,527 8% -25% 25% -38% -17% -48% 10% 27% 15% 134% 101% -15% -100% 24% 38% %Change %Change 70,479 (3,817) 486,228 163,564 1,184,508 173,309,480 20,188,412 20,188,412 49,721,067 49,721,067 4,504,006 4,504,006 179,669,665 7,639 24,808 179,702,112 79,389,689 79,389,689 22,903,584 22,903,584 96,855,480 2,958 96,858,438 46,574,844 46,574,844 69,973,947 56 2,293 1,303,467 250,740 764,543 199,311,766 20,399,547 20,399,547 50,372,305 50,372,305 6,133,709 6,133,709 170,973,633 69,976,296 1,659,500 1,659,500 62,500 62,500 145,639 456,512 (310,873} 540,179 540,179 1,156,120 1,156,120 -5% -1% 43% -47% 15% 1% 1% 36% 610 16% 123% -20% -6% 19% -24% 52% 8% -7771925% -47% -10% 170,974,243 72,169,715 72,169,715 25,715,675 25,715,675 67,424,165 956 67,425,120 48,809,983 48,809,983 61,211,202 61,211,282 1,812,177 1,812,177 62,500 62,500 137,421 361,146 {223,724) 91,095 91,095 789,899 789,899 -5% -9% 12% -30% 5% -13% 9% 0% -28% -83% -32% Rents-HydroOper 0% 540Total HydroMaintSuperAnd Engineer Maintenance Supervision and Engineering 541Total HydroMaintOfStructures Maintenanceof5tructures 542Total Hydro Maint Res Dams And Water MaintenanceofReservoirs,Dams,and Waterways 543Total 5440000 0544000 544 0545100 544Total 545 MalntenanceofElectrlcPlant MalntenanceofMlscellaneousHydraullcPlant Other Power Generation Operation Supervision and Engineering HydroMaintOfElecPlant Maint-MiscHydraulicPlant HydroMaintMiscHydrolicPlan 545Total 5460000 0546000 546 CtOperSuper And Engineer 546Total 5472000 5472100 0547300 0547104 547 547 5473200 0547123 547 0547150 547 Ct Fuel Np Gas Trading Desk Savings CtFuelFms Gas Savings Gas Desk Savings Natural Gas Handling- Ct 265,097 265,097 208,746 208,746 455,349 323,898 323,898 101,256 101,256 467,545 455,349 510,804 510,804 467,545 693,728 693,728 1,310,612 1,355,857 1,310,612 5,705,070 5,705,070 421,512 1,355,857 7,929,160 7,929,160 409,707 369,728,723 441,044,809 (2,034,966) 370,150,235 439,419,550 19% 667,858,235 52% 1,169,478 200,360 1,369,838 1,591,014 303,404 1,894,418 38% 3,025,529 317,883 3,343,412 76% 22% -51% 3% 36% 289,160 289,160 239,287 239,287 331,906 331,906 724,152 724,152 -11% 136% -29% 4% 1,269,666 3% 39% 1,269,666 11,767,431 11,767,431 449,706 (160,164) 671,848,101 (4,279,408) -6% 48% Oil Fuel 547Total 5480001 Generation Expenses 0548100 548 0548200 548 548Total Ammonia-Qualifying Generation Expenses- Other Ct Ct Generation Expenses Ct Gen Exp-Ammonia 0% 0% 366,382 366,382 456,259 456,259 1,294,944 1,294,944 599,306 599,306 629,434 5,368 634,802 3,204,173 3,204,173 133,785 789,076,861 (7,294,136) (168,984) 403,039 52,326,165 834,476,730 303,108 423,252 3,040,302 3,766,662 27% 91% 290% -17% -50% -73% 25% 13% 667 350,216 350,216 232,968 232,968 1,190,676 1,190,676 497,265 497,265 1,248,246 20,775 1,269,021 5,993,988 5,993,988 103,354 831,628,363 (10,566,662) (170,504) 473,560 45,500,140 866,968,251 290,839 691,629 3,177,080 4,159,548 -100% 0% -4% -49% -8% -17% 100% 87% 4% 10% 218,008 218,008 331,428 331,428 1,439,806 1,439,806 456,821 456,821 2,217,810 17,093 2,234,904 4,459,099 4,459,099 27,344 676,295,933 (5,733,627) (129,570) 576,304 8,953,836 679,990,220 231,516 872,035 1,994,521 3,098,072 -38% 42% 21% -8% 76% -26% -22% -26% DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For The Calendar Years Ended December 31, 2012 Through December 31, 2016 Classification Sub-Classification Oracle Account ltemNo.12b PeopleSoft Account Miscellaneous Other Power Generation Expenses 5510000 0551000 Maintenance Supervision and Engineering 5520000 0552000 Maintenance of Structures 5530000 0553000 MaintenanceofGeneratingandElectricPlant Account Description CtMiscOtherPowerGenEx 549Total 551 551Total 552 552Total 553 CtMaintOfStructures CtMaintOfGenAndElecPlant 553Total 0554100 Maintenance of Miscellaneous Other Power Generation Plant 554 CtMaintMiscOthPwrGenPI Other Production Maintenance Solar:MaintMiscGenPlt 554Total 5550016 0555016 l/CJointDisp-PurPwr Purchased Power-Renewable PurchasedPower-CoGeneration Interchange Power Interchange Power Cogeneration Broad River Renewable Purchase Power Surplus Energy-Actual HarrisPurchaseEnrgy-Fuel-Act Purchases-Generation Imbalance 0555130 5550701 0555202 5550703 0555202 5551200 0555202 5560000 0556000 0555750 Purchases Power SystemControlandLoadDlspatchlng 5570001 0557000 5570005 0557000 5573000 0557980 5578000 0557980 5578400 0557001 555Total 556 556Total 5600000 0560000 5611000 0561100 5610000 0561200 LoadDlspatch-Rellablllty Load Dispatch-Monitor and Operate Transmission System 5613000 0561300 Load Dispatch-Transmission Service and Scheduling Sys Control And Load Dispatch Other Power Supply Expenses l/CJointDisp-PjmCharges Cp&LSales-Billed-DivertSales Sc Deferred Fuel Expenses PrecommercialExpenses WhlsaleDeferredFuelExpenses NcDeferredFuel Expenses AmerElec-Rockport230KvCont NcReps-RecsRecovery Commissions/Brokerage Expense Ea&CoalBrokerFees 0557451 Other Expenses Transmission Expenses Operation Supervision and Engineering CtMaintSuperAndEngineer 557Total 560 560Total 561.1 561.lTotal 561.2 561.2Total 561.3 TransOperSuperAnd Engineer Load Dispatch-Reliability Trans Load Dispatching Ld Disptch-Monitor&Op Trns Sys Station Expenses 561.5Total 561.6 561.6Total 561.7 561.7Total 562 562Total Overhead Lines Expenses 563Total 5616000 0561600 Transmission Service Studies 5617000 0561700 Generation Interconnection Studies 5620000 0562000 0565000 565 5650016 0565016 565 TransmissionofElectricitybyOthers Miscellaneous Transmission Expenses 566 566Total 6,113,507 729,801 729,801 1,732,395 1,732,395 21,042,540 -11% 17,858,308 6,257,060 21,042,540 7,249,685 18% -2% 92% 8,123,073 1,237,771 1,237,771 1,582,893 1,582,893 19,983,034 19,983,034 7,593,406 %Change 12,100,349 33% 70% -9% -5% 12,100,349 4,209,734 4,209,734 5,481,381 5,481,381 20,373,346 20,373,346 11,784,113 %Change 15,031,798 49% 240% 246% 15,031,798 4,752,939 4,752,939 4,282,513 4,282,513 9,897,418 -13% 210% -51% 30,672,706 15,416,253 55% 11,729,341 51,678,839 146,063,485 32,621,652 200,104,902 24,665 0% 15,416,253 38,331,512 199,389,479 41,200,052 206,530,267 -10% 81% 37,848 6,257,060 7,249,685 15,050,866 16% 7,593,406 120,316,123 135,999,326 13,413,363 96,701,955 69,041,332 179,028 74,294,329 6,298,896 160,882,622 99,128,130 212,801 315,335,005 3,161,554 3,161,554 244,796 355,867,645 3,508,842 3,508,842 364,733 830,359 15,322,765 (2,698,671) 735,422 (2,971,008) 421,545,592 4,334,182 4,334,182 624,568 (33,055) 605,812 (6,436,606) 2,214,766 34,401,466 (11,240,965) 5% 64,712,268 17,850,178 117,602,584 101,064,827 (388) 13% 11% 18% 24% 11,784,347 136,123,228 132,254,000 25,277,658 202,726,372 139,490 63,619 496,584,367 1,004,745 1,004,745 68,250,796 521,255 18% -77% 69,115 430,562,658 1,411,430 1,411,430 77,002,059 -13% 40% 93,167,472 (110,565,443) 130,271 485,581,582 1,629,675 1,629,675 84,847,772 31% 13% 15% 60,755,982 13,055,222 7,200 28,969,238 1,438,001 1,438,001 2,493,825 2,493,825 32,530,613 995,861 995,861 2,955,267 2,955,267 12% -31% 19% {16,480,246} 1,295,818 1,295,818 1,796,187 1,796,187 -151% 30% -39% 107 (41,786,192) 111,404 111,404 2,576,757 2,576,757 2,361,588 154% -91% 43% 7,200 16,375 170,193,106 48,555 48,555 2,913,179 2,913,179 1,809,906 14% 1,013,374 2,296,333 7% 2,361,588 760,937 133% 1,809,906 830,944 1,073,383 914,711 1,206,880 999,716 12% 2,296,333 674,213 90% 760,937 400,981 -67% 830,944 Reliability,Plan&Standards 914,711 999,716 674,213 -33% 400,981 36,476 36,476 141,102 141,102 1,111,208 1,111,208 1,435,711 1,435,711 -41% 267 2,499 2,499 99,546 99,546 2,154,976 2,154,976 1,159,007 1,159,007 9% 0% Gen Interconnection Studies 0% 631,939 631,939 599,215 599,215 34,484,087 3,174,088 780,553 780,553 623,631 623,631 14,551,804 4,247,583 320,845 37,979,019 7,685,889 (8,377) 386,547 19,177,557 7,599,543 7,685,889 7,599,543 -507% -56% 13% 12,600 7,795 145,624,149 (4,530) (4,530) 2,436,540 2,436,540 2,191,336 -14% -109% -16% 1,013,374 Trans Service Studies Trans Misc Expenses MiscTrans-TranslinesRelated TransMiscExp-ProjSupt-NcrcRec -22% 13,150,559 4,283,381 4,283,381 7,770,653 7,770,653 30,672,706 9,897,418 11,729,341 949,503 1,206,880 Wheeling Charges Tariff Expense Trans Of Elect-Purchase l/CJointDisp-TransNwExp Production Ancillary Services 24% 13% 2% 833,588 1,073,383 TransStationExpenses %Change 13,150,559 234 LdDisptch-TrnsSvc&Sched 565Total 0566100 6,834,000 744,338 744,338 901,533 901,533 17,858,308 %Change 8,123,073 949,503 Trans Overhead Line Expenses 565000T 6,113,507 833,481 561.3Total Reliability, Planning ands Standards Development %Change 6,834,000 24% 4% -50% 0% 35,268 35,268 668,621 668,621 726,365 726,365 415,736 1,163,085 134,576 103,434 1,816,831 6,432,309 0% -14% 16% 0% 300% 66% 98% (67,648) 297,366 -91% 229,718 4,251,037 138 -15% 4,251,259 -23% 2,191,336 940,162 21% "' 940,162 292,406 13% -100% 292,406 94,892 (94,892) 16,221 (16,221) 1,465,991 1,465,991 844,247 844,247 109415% -93% -29% 94% -19% -3897% -116% -32% -27% 10,310 -87% 10,310 6,239,548 -96% 761 6,885,154 30,914 -93% -34% 6,239,548 47% 6,916,068 11% 84 -1% 6,432,309 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For The Calendar Years Ended December 31, 2012 Through December 31, 2016 Classification Sub-Classification Oracle Account ltemNo.12b PeopleSoft Account Account Description %Change 567Total TransMaint5uperAnd Engineer Maintenance Supervision and Engineering 568Total Maintenanceof5tructures 569Total Maintenance of Computer Hardware 569.lTotal 256 1,211,870 1,211,870 25,114 25,114 0% 9707% 102% 647 -97% TransMaint0f5tructures MaintOfComputerHardware Maint0fComputer5oftware Maintenance of Computer Software 569.2Total MaintOfCommunicationEquip Maintenance of Communication Equipment 0570100 569.3Total 570 Maintenanceof5tationEquipment 570Total Maintenance of Overhead Lines 571Total Maintenance of Underground Lines 572Total MaintStatEquip-Other_Trans TransMaint0f5tationEquip TransMaintOfOverhead Lines 56,932 56,932 168,810 168,810 265,717 68,995 68,995 160,241 160,241 308,700 265,717 308,700 4,924,114 4,924,114 15,349,677 15,349,677 9,017,065 9,017,065 19,797,922 19,797,922 "' 21% -5% 16% 0% 71,053 71,053 149,444 149,444 322,476 322,476 29% 11,365,973 11,365,973 30,211,542 30,211,542 "' 96,831 83% 3% -7% Maintenance of Miscellaneous Transmission Plant Distribution Expenses Operation Supervision and Engineering 5800000 5810000 0580000 0581004 Load Dispatching 5820000 0582100 5830000 0583100 5840000 0584000 Station Expenses 573Total 580 580Total 581 581Total 582 -100% DistOperSuperAndEngineer Load Dispatching Dist Station Expenses Relays And Meters-Dist 582Total OverheadUnesExpenses Underground Line Expenses 5850000 0585000 583 583Total 584 584Total 585 StreetLightingand5ignalSystemExpenses 585Total Meter Expenses 586Total Customer Installations Expenses 587Total Transf5etRemResetTest-Dist Dist Overhead Line Expenses Dist Under Line Expenses 26% 53% DistCustlnstallExpenses 0588100 5890000 0589000 MlscellaneousExpenses 5900000 0590000 588 588Total 589 589Total 590 Maintenance Supervision and Engineering 590Total Maintenaceof5tructures 591Total Dist Misc Exp Misc Distribution Exp- Other Dist Rents DistMaintSuperAndEngineer DistMaint0f5tructures 0592200 Maintenance of Station Equipment 5930000 0593000 592 592Total 593 Maintenance of Overhead Lines 593Total Maintenance of Underground Lines 594Total 595 DistMaint0f5tationEquip CirBrkrsTrnsfMtersRely-Dist DistMaintOfOverheadlines Right-Of-WayMaintenance-Dist DistMaintOfUnderlines 5950000 0595100 Maintenance of Line Transmformers DistMainOflineTransformers CirBrkrsTransfCapcitrs-Dist 595Total DistMainOf5trlgt&5ign5y Maintenanceof5treetlightingandSignal Systems 5970000 0597000 Maintenance of Meters 5980000 MalntenanceofMlscellaneousDlstrlbutlon Plant Customer Account Expenses Supervision 0598100 596Total 597 597Total 598 DistMaintOfMeters MaintOfMiscDistribPlant 598Total Cust.Accounts5uper. 901Total 14,870,744 14,870,744 3,169,484 3,169,484 1,171,392 1,133,794 1,171,392 2,469,541 2,469,541 2,569,038 2,569,038 2,740,930 2,740,930 1,782,406 1,782,406 3,018,575 3,018,575 1,226,682 1,226,682 27,244,509 27,244,509 3,846,651 3,846,651 213,261 3,152,686 3,152,686 1,283,817 1,283,817 24,272,721 852 24,273,572 3,937,176 3,937,176 339,433 213,261 16,748 16,748 2,958,086 339,433 24,020 24,020 5,960,352 59% 2,958,086 72,475,045 5,960,352 50,668,275 72,475,045 3,182,318 3,182,318 864,193 -1% 27% 3% 11% -31% 0% 96,831 16,139,786 16,139,786 3,845,689 3,845,689 1,286,495 0% 9% 21% 1,286,495 10% 4,002,821 4,002,821 1,031,807 1,031,807 -42% 46% DistStl.gt&SignalSysExp Dist Meter Expenses 5881000 15,055,322 15,055,322 2,500,046 2,500,046 1,133,794 "' 4% 5% -11% 2% 0% 875,796 875,796 1,482,621 1,482,621 22,017,691 642,370 22,660,061 3,965,646 3,965,646 997,549 -72% 15% -7% 1% 997,549 14,380 14,380 3,972,290 194% 101% 3,972,290 59,187,922 -33% 50,668,275 3,848,170 3,848,170 817,610 -30% 59,187,922 4,048,060 4,048,060 719,993 17% 864,193 2,595,850 817,610 2,961,313 -5% 719,993 2,851,422 -12% 2,595,850 854,022 854,022 1,981,188 2,961,313 846,882 846,882 2,029,989 14% 2,851,422 804,888 804,888 2,226,651 -4% 1,981,188 815,646 815,646 2,029,989 1,047,273 1,047,273 43% 21% -1% 2% 28% 2,226,651 1,390,770 1,390,770 2,470,827 2,470,827 381,372 381,372 973,778 973,778 93,958 93,958 2,405,118 2,405,118 4% MaintenanaceOfUndergroundLines TransMaintOfMiscEqpt %Change %Change 2,445,665 2,445,665 -40% 5% -5% 10% 33% 1% 58845% 0% 32% 1509% -100% 765,389 5,408,838 6,174,227 28,081,297 28,081,297 15,171 15,171 321,941 321,941 2,074,715 2,074,715 5,409,817 5,409,817 1,451,655 40,096 1,491,751 207,125 905,220 1,112,345 3,521,477 3,521,477 78,716 78,716 2,966,205 2,966,205 2,821,470 2,821,470 19,021,125 -46% -7% 0% 232% -87% 41% 16% -72% 241% 0% 239% 90% 19,021,125 3,957,561 3,957,561 2,362 -16% 2,362 (3,971) (3,971) 2,789,155 3,180,029 5,969,184 110,965,391 (911,080) 110,054,311 4,871,607 4,871,607 376,835 43,028 419,863 7,538,176 -100% 7,538,176 1,961,780 1,961,780 5,053,764 164% 5,053,764 448,770 448,770 127% 0% -128% 50% 86% 20% -42% 144% -68% %Change 1,663,464 1,663,464 3,795 3,795 807,975 807,975 4,845 4,845 2,162,739 2,162,739 28,649 -33% -99% -17% -95% -10% 28,649 551,322 4,190,787 4,742,109 13,679,133 13,679,133 272,726 272,726 84,612 2961% 84,612 1,296,078 1,296,078 6,006,770 6,006,770 1,475,077 44,107 1,519,184 138,734 606,839 745,573 4,081,995 4,081,995 11,103 -74% 11,103 3,821,334 3,821,334 1,639,608 1,639,608 22,929,206 -86% 22,929,206 2,669,866 2,669,866 13,916 13,916 15,336 15,336 1,740,456 3,092,362 4,832,818 70,629,379 185,922 70,815,301 5,153,125 5,153,125 836,791 71,292 908,083 6,979,238 6,979,238 1,717,984 1,717,984 3,479,012 3,479,012 202,113 202,113 -23% -51% 1698% -38% 11% 2% -33% 16% 29% -42% 21% -33% 489% -486% -19% -36% 6% 116% -7% -12% -31% -55% %Change 95,951 95,951 3,502 3,502 280,089 280,089 27,684 27,684 2,735,383 2,735,383 10,142 10,142 231,404 5,368,386 5,599,790 23,519,116 23,519,116 (1,192} (1,192) (759,297) (759,297) 717,977 717,977 5,214,815 5,214,815 1,231,257 110,267 1,341,524 134,171 56,904 191,075 4,712,175 4,712,175 10,276 10,276 7,511,340 7,511,340 2,013,972 2,013,972 25,567,942 -94% -8% -65% 471% 26% -65% 18% 72% -100% -997% -45% -13% -12% -74% 15% -7% 97% 23% 25,567,942 2,533,934 2,533,934 8,189 12% 8,189 1,296 1,296 1,718,022 2,359,027 4,077,049 96,085,107 259,549 96,344,656 4,822,769 4,822,769 772,683 25,978 798,660 6,812,010 -41% -5% -92% -16% 36% -6% -12% 6,812,010 1,801,325 1,801,325 1,426,022 -2% 1,426,022 281,077 281,077 -59% 5% '"' DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For The Calendar Years Ended December 31, 2012 Through December 31, 2016 Classification Sub-Classification Oracle Account ltemNo.12b Account Description PeopleSoft Account Cust Accounts Meter Read Exp Meter Reading Expenses 0903000 0903100 0903200 0903300 0903750 CustomerRecordsandCollectionExpenses 9040000 0904001 0904000 9050000 0905000 UncollectlbleAccounts Miscellaneous Customer Account Expenses CustomerServiceandlnfonnationalExpenses Supervision 902Total 903 903 903 903 903 903 903Total 904 904 904Total 905 CustAcctsRecords&CollecEx CustContractsAndOrders-Local CustBillingAndAcct CustCollecting-Local CustReceivAndCollectExp-Edp Common-Operating-CustAccts BadDebtExpense CustAccountsUncollectible CustAccountsMiscExp 905Total Cust Service&lnfoSuper 9080000 9080012 0908150 0908160 0908140 Customer Assistance Expenses 9090000 907Total 908 908 908 908 0909650 908Total 909 909 0910000 0910100 909Total 910 910 lnfonnationalandlnstructionalExpenses Mlscellaneous Customer Service and lnfonnationalExpenses 910Total Supervision 911Total Sales Expenses CustAsstExp-ConservationPrograms-Rec Commer/lndustAssistanceExp Customer Assist Expenses Economic Development CustAsstExp-ConservationPrg lnfo&lnstrucAdv-ConservationProg-Rec Info And lnstrucAdvertising lnfo&lnstrucAdj-ConservProg MiscCustServiceAnd Info Exp Exp-RsRegProd/Svces-Cstaccts %Change %Change 5,349,422 5,349,422 22,868,947 5,503,921 5,503,921 22,374,021 3% 5,441,029 5,441,029 25,491,392 -1% 22,868,947 22,374,021 -2% 25,491,392 14% 10,238,979 10,238,979 2,647,283 6,089,379 6,089,379 2,673,983 -41% 9,032,359 9,032,359 2,801,514 48% 2,647,283 476,876 476,876 2,673,983 406,806 406,806 1% -15% 2,801,514 251,619 251,619 5% -38% %Change 4,773,304 4,773,304 4,961,712 12,297,010 6,257,226 8,693,359 266,099 13,284 32,488,690 315,604 10,661,328 10,976,932 600,271 -12% 27% 22% 600,271 -79% 28 10,016 -100% %Change 3,944,389 3,944,389 9,507,720 10,448,744 6,150,475 9,064,260 363,028 1,556 35,535,783 592,668 11,924,424 12,517,092 730,728 730,728 -17% "' 14% 22% 2,547,268 2,796,315 15,042 35,210,656 38,022,013 -14% 2,430,126 65,598 43,516,155 46,011,879 35,514,950 302,907 6,669,543 6,972,450 663,023 663,023 -100% 13% 0% -44% -9% 0% 339 3,966 1,527 475 41,414,296 43,961,564 %Change 4,468,044 4,468,044 11,568,545 12,241,651 6,390,111 5,004,055 302,015 8,574 2,448 18,491 21% 28,982 -100% 153,097 2,460 -92% 36,122 1,097,106 1,097,106 1,076,508 1,894,269 1,894,269 941,630 73% 3,108,706 3,108,706 2,048,160 64% 153,625 280,523 4,182,686 -95% 36,122 266,907 3,402,146 1,076,508 941,630 -13% 2,048,160 118% 4,463,209 118% 3,669,053 5,832 137% 81,137 -76% 81,137 363,336 4,030,014 125% -18% 4,393,350 20% Supervision 9120000 0912100 0912000 9130000 0913001 DemonstratlngandSelllngExpenses Advertising Expenses MlscellaneousSalesExpenses AdmlnlstratlveandGeneralSalarles 9160000 0916000 9200000 0920000 0920000 0920100 9210000 9210001 9210012 0921200 AdmlnlstratlveandGeneralSalarles 0921100 0921101 0921110 0921300 0921400 0921540 0921600 0921800 0921900 0921980 1199990 0870000 0880000 OfflceSuppllesandExpenses 9220012 0922000 Administrative Expenses Transferred-Credit 9230000 0923100 0923980 0923000 912 912 912Total 913 913Total 916 916Total 920 920 920 920Total 921 921 921 921 921 921 921 921 921 921 921 921 921 921 921 921 921Total 922 922Total 923 923 923 Demonstration&Sell-ProjSupt-NcrcRec Demonstrating And Selling "' 27,761 27,761 Advertising Miscellaneous Sales Expenses Salaries And Wages A&GExp-RelocationExpenses Salaries&Wages-ProjSupt-NcrcRec A&G Off Supplies And Expenses A&G Ms Cmptr Rprs Employee Expenses Employee Exp- Ne Relocation Expenses Telephone And Telegraph Exp Computer Services Expenses ComputerRent(GoOnly) Other OffSupplies&Exp-ProjSupt-NcrcRec Office Supply And Exp-Partner Office Supplies And Expenses Shared Services/Im Clearing Storage-Gaslosses DistributionSysOps-Supv/Eng GasDistribution-OtherExpense 995,000 995,000 69,967,969 69,967,969 27,025,684 71,967 71,967 523,183 523,183 942,372 942,372 82,246,188 82,246,379 48,006,380 2,134,424 902,850 159% 0% -5% 18% 149,860 149,860 387,641 387,641 1,262,126 1,262,126 114,152,427 114,152,812 46,712,058 9,112,691 2,915,103 108% -26% 34% 39% so 3,565,744 3,566,111 434,861 434,861 170,016 170,016 74,012,399 74,012,399 12,781,379 -100% "' 2280% 12% -87% -35% 5,298,702 5,298,702 190,167 190,167 135,150 135,150 100,816,624 " 100,816,653 10,353,065 49% -56% -21% 0% 5,976,581 5,976,581 314,113 314,113 16,591 16,591 116,700,850 13% 65% -88% 12 36% 116,700,862 8,411,662 4,698,026 3,618 7,707 1,742 4,382,749 2,897,835 124,007 4,226,419 2,767 3,753 1,044 3,758,010 2,933,919 60,680 3,877,042 1,727 (12,897) 1,758 4,535,847 3,089,763 (5,890) 25,053,862 26,460,045 23,647,618 " 99 16% 90 690 (65) 47 27,025,684 Admin Exp Transfer Admin ExpTransf-Construction 51,043,655 1,349 89% 58,739,852 15% 1 49,951,505 60 494 -15% 355 36,836,562 44,051,375 0% -4% 185 -74% 67,849,923 47,800,250 564,996 815 4,235,377 62,013,926 43,547,509 78,797 -9% 116,058 564,996 1,349 OutsideSvcsCont-ProjSupt-NcrcRec Outside Services Employee And A&G Outside Services Emp 0% 159054% 116,243 -79% 78,843 866 1,685,398 59,791,831 1,905,717 44,223,480 -32% DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For The Calendar Years Ended December 31, 2012 Through December 31, 2016 Classification Sub-Classification Outside Services Employed ltemNo.12b Oracle Account PeopleSoft Account 9240000 0924980 Account Description 9240500 0924050 9250510 0925051 925 0925300 925 923Total 924 924 Property Insurance 924 A&GPropertylnsurance AllocPescProplnsExp l/CProplnsExp ProplnsForCorpExp 924Total Injuries and Damages A&G Injuries And Damages l/CGenliabExp Injuries And Damages-Other Environmental lnjAndDamages Injuries And Damages 925Total 9260005 9260015 0926000 0926000 0926000 0926000 0926420 0926430 0926490 0926600 926 926 926 926 926 926 926 926 926Total A&G Employee Pens And Ben A&GPen/Ben-Lifelns A&GPen/Ben-Apbc A&GPen/Ben-Rec&Edu Employees' Tuition Refund Employees'RecreationExpense OTherEmployeeBenefits Employee Benefits-Transferred 0927001 927 Reg Commission Expenses Employee Pensions and Benefits 9270012 Franchise Requirements 36,836,562 12,409,379 12,409,379 12,347,116 12,347,116 139,101,028 44,051,375 12,150,532 1,718 6,037,388 449,683 18,639,321 8,716,611 1,053,065 1,099,097 10,868,773 216,065,374 0928000 928 928 139,101,028 0928053 Regulatory Commission Expenses 928 Reg Commission Expenses ProfFeeslegal Travel Expense 928Total 0929500 929 Duplicate Charges-CR 929Total General Advertising Expenses 930.lTotal 930.2 930.2 930.2 930.2 930.2 930.2 930.2 930.2 930.2 930.2 930.2Total 931 Admin ExpTransf Duplicate Charges-Cr Gen Advertising Exp 0930200 0930210 0930220 0930230 0930250 0930700 0930800 0930940 MlscellaneousGeneralExpenses 9310000 0931001 9350000 0935100 Misc General Expenses lndustryAssociationDues Exp0f5ervicing5ecurities Dues To Various Organizations A&G Misc Directors Fee Buy\5ellTransfEmployeeHomes Leased Circuit Charges-Other Research And Development RAndD-AlternativeEnergy General Expenses A&GRents AAndGRentslc 931Total Maintenance of General Plant Grand Total Note(s): Detail amounts may not add to totals shown due to rounding. 935 935Total CustlnforAndComputerControl MaintOfGeneralPlant 50% -12% 67,849,923 1,838,029 27,915 13,073,000 2,428,049 17,366,993 2,937,009 3,013,000 4,564,778 10,514,787 136,629,188 %Change 54% -7% -3% 66,250,118 7,076,105 (190,276) 9,804,000 16,689,829 4,193,225 3,748,000 459,360 136,827 342,175 8,879,587 77,678,567 %Change -2% -4% -16% " 216,065,374 55% 136,629,217 -37% 14 927Total 9280000 %Change 20% 6,163,674 "' 6,369,799 6,454,258 6,163,674 -5% 6,369,799 (17,920,452) (17,920,452) 1,776,256 1,776,256 6,821,276 (29,712,134) (29,712,134) 466,855 466,855 8,203,434 66% 243,395 (42,523,890) (42,523,890) 289,122 289,122 (26,013,190) 3% 43% -38% 996,888 6,821,276 8,045,824 8,446,829 11,492,688 24% {25,016,302) 5,978,108 -396% 8,045,824 11,492,688 43% 5,978,108 -48% 2,125,948 2,125,948 2,912,515,602 5,181,935 5,181,935 3,339,390,226 144% 15% (833,866) (833,866) 3,270,024,227 -116% -2% -43% 18,283,752 13,218,334 3,477,000 770,771 548,553 309,740 18,324,398 39,168,308 1,246 10,407 63,388 9,893,472 49,136,821 2079% 0% 6,454,258 -74% 12,407 (117,580) 896,981 78,470,717 305 61,478,095 9,066,278 (175,526) 9,393,000 7,564,318 21,227 535 7,585,010 (8,190,150) (15,892,524) (24,082,674) 3,299,438 3,299,438 (26,961,434) 875,918 147,947 368,626 1,007,175 9,588,542 188,775 1,186,622 72,185 (13,524,797) 19,990,848 7,492,125 27,482,973 11,538 1,070,243 1,081,781 3,508,501,416 %Change -7% 10% 106% -43% 1041% -46% 360% -230% 7% 18,253,708 7,480,616 3,658,000 639,585 4,280,061 289,884 16,348,147 75,098,778 -37% 12,219,802 87,327,117 -100% 1,194 8,057,238 (3,492,937) (13,246,613) (16,739,550) 2,742,401 2,742,401 (29,220,638) 773,579 162,294 360,792 1,075,146 8,534,381 1,277 73,688 1,336,027 90,974 {16,812,480) 22,198,724 4,572,804 26,771,528 7,460 (466,562) (459,102) 3,499,903,310 %Change -25% 0% -11% 8,536 8,056,044 19% 46,129,197 9,827,790 619,918 7,806,000 78% 0% 7,495,555 6% -30% -17% 24% -3% -142% 0% 7,495,555 (3,226,558) 16,884 (3,209,674) 2,196,396 2,196,396 (37,092,254) 789,764 136,278 278,654 976,847 3,759,745 1,147 118,621 1,329,509 163,356 (29,538,333) 23,467,695 10,471,391 33,939,086 10,232 1,387,306 1,397,539 3,303,196,241 -7% -81% -20% 76% 27% -404% -6% DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For The Calendar Years 2011 Through 2015 And The Test Year Ended December 31, 2016 ($ in $000's) No. 1 2 3 4 5 5a 6 7 8 9 10 10a Item (a) Wages charged to exQense: Power Production expenses Transmission expenses Distribution expenses Customer accounts expenses Customer service and information Sales expenses Administrative and General expenses: (7a) Administrative and general salaries (7b) Office supplies and expense (7c) Administrative expense transferred-er. (7d) Outside services employed (7e) Property Insurance (71) Injuries and damages (7 g) Employee pensions and benefits (7h) Franchise requirements (7i) Regulatory commission expenses (7j) Duplicate charges - er. (7k) Miscellaneous general expense (71) Rents (7m) Maintenance of general plant Total administrative and general expenses L(7a) through L(7m) Total salaries and wages charged to expense (L2 through L6 + L8) 254,753 15,635 55,578 12,260 6,069 756 279,867 16,270 53,566 12,785 6,245 761 69,472 (106) 78,778 (589) 9.9% 2013 Amount % Change (f) (g) -3.6% 4.3% 2.9% 0.6% 22.0% -15.5% 4.2% 1.1% -55.8% 77.7% 421,981 13,159 51,309 16,484 2,422 3,507 17.2% -7.3% -8.9% 10.3% -15.2% 67.1% 393,271 16,126 66,693 18,551 2,681 3,800 13.4% 453.4% 105,227 (1,006) 33.6% 70.8% 71,055 0 -32.5% -100.0% 101,571 0 42.9% 878.3% 5 -47.9% 73 15,281 141.0% 473.8% 9 4 160 120,731 2 10 (84) 119.0% 167 0 180 1 11% 8% 18.9% 1159.0% -1867.7% 7.4% 400.0% 4.4% (25,472) 262.8% (3,315) -87.0% 209 (4 070] 90 033 -567.1% 20.5% (2 548] 65 365 -37.4% -27.4% 201 1 110 102 055 -106.1% 70.9% 5.1% -104.3% 56.1% 269 121 317 145.3% 18.9% 515.838 7.8% 610.916 18.4% 622.438 1.9% 11.5% 119,684 -2.9% 132,158 10.4% 150,550 13.9% 143.8% 19 728 -76.4% 21 623 9.6% 20 648 -4.5% 793 636 3.8% 444.230 6.7% 478.331 7.7% Wages capitalized 96,559 110,548 14.5% 123,216 All other labor 24 010 34 279 42.8% 83 569 536 725 589 057 Ratio of salaries and wages expensed to total wages (L9/L11) Ratio of salaries and wages capitalized to total wages (L 10IL11) Ratio of salaries and wages charged to all other to total wages (L 1Oa I L 11) 4.6% -7% 23% 30% 13% -671.1% 416.156 12 Test Year Amount % Change (I) (m) 360,061 14,201 56,309 14,947 2,857 2,099 2 (7,020) 2015 Amount % Change (k) Ul 5.4% 3.3% 0.9% 15.6% 3.4% 55.3% 30 2,663 1,229 2014 Amount % Change (h) (i) 295,023 16,801 54,055 14,782 6,456 1,181 4.1% 871 74 736 Total salaries and wages 14 2012 Amount % Change (d) (e) 510 71105 11 13 2011 Amount (b) Item No. 12c 9.8% 685115 16.3% 655 250 -4.4% 764 698 16.7% 78% 75% 70% 79% 80% 78% 18% 19% 18% 18% 17% 19% 4% 6% 12% 3% 3% 3% NOTES: - Amounts represent labor as booked plus estimated adjustments for the labor portion of Stores distributed from Stores via material burdens and from Clearing accounts via allocations. - Percent represents increase of each year over the prior year in Columns (c ), (e), (g), (i), (k), and (m). - Line 10a - All other labor is composed primarily of non-capital balance sheet accounts (e.g. deferred debits, liabilities, clearing accounts, etc.) and non-regulated O&M. NCUC Form E-1 Item No. 12c Page 2 of 2 Item No. 12c DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For The Calendar Years 2011 Through 2015 And The Test Year Ended December 31, 2016 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Total DEP Employees 5,464 5,502 5,543 5,528 5,492 5,492 5,496 5,498 5,484 5,494 5,492 Dec-16 5,485 C:\Wi~dws\ServiceProfiles\NetworkService\AppData\Local\Temp\tmpD2B9.tmp.xlsx DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For The Calendar Years 2011 Through 2015 And The Test Year Ended December 31, 2016 ($in $000's) No. 1 2 3 4 5 Sa 6 7 8 9 Item (a) Wages charged to ex[;!ense: Power Production expenses Transmission expenses Distribution expenses Customer accounts expenses Customer service and information Sales expenses Administrative and General expenses: (7a) Administrative and general salaries (7b) Office supplies and expense (7c) Administrative expense transferred-er. (7d) Outside services employed (7e) Property Insurance (71) Injuries and damages (7g) Employee pensions and benefits (7h) Franchise requirements (7i) Regulatory commission expenses (7j) Duplicate charges - er. (7k) Miscellaneous general expense (71) Rents (7m) Maintenance of general plant Total administrative and general expenses L(7a) through L(7m) Total salaries and wages charged to expense (L2 through L6 + LB) 2011 Amount (b) 2012 Amount % Change (d) (e) 254,753 15,635 55,578 12,260 6,069 756 279,867 16,270 53,566 12,785 6,245 761 69,472 (106) 78,778 (589) Item No.12c 2013 Amount % Change (f) (g) 2015 Amount % Change (k) rn Test Year Amount % Change (I) (m) 9.9% 4.1% -3.6% 4.3% 2.9% 0.6% 295,023 16,801 54,055 14,782 6,456 1,181 5.4% 3.3% 0.9% 15.6% 3.4% 55.3% 360,061 14,201 56,309 14,947 2,857 2,099 220% -15.5% 4.2% 1.1% -55.8% 77.7% 421,981 13,159 51,309 16,484 2,422 3,507 17.2% -7.3% -8.9% 10.3% -15.2% 67.1% 393,271 16,126 66,693 18,551 2,681 3,800 -7% 23% 30% 13% 11% 8% 13.4% 453.4% 105,227 (1,006) 33.6% 70.8% 71,055 0 -32.5% -1000% 101,571 0 42.9% 878.3% 18.9% 1159.0% 5 -47.9% 73 15,281 141.0% 473.8% 9 4 160 120,731 2 10 (84) 1190% 167 0 2 30 2,663 1,229 2014 Amount % Change (h) (i) 4.6% 180 1 -1867.7% 7.4% 400.0% (7,020) -671.1% (25,472) 262.8% (3,315) -870% 209 871 74 736 70.9% 5.1% (4 070) 90 033 -567.1% 20.5% (2,548) 65365 -37.4% -27.4% 201 1 110 102 055 -106.1% 510 71105 -104.3% 56.1% 269 121 317 145.3% 18.9% 4.4% 416156 444 230 6.7% 478 331 7.7% 515 838 7.8% 610 916 18.4% 622 438 1.9% 10 Wages capitalized 96,559 110,548 14.5% 123,216 11.5% 119,684 -2.9% 132,158 10.4% 150,550 13.9% 10a Al I other labor 24 010 34279 42.8% 83 569 143.8% 19728 -76.4% 21 623 9.6% 20648 -4.5% 11 Total salaries and wages 536 725 589 057 9.8% 685115 16.3% 655,250 -4.4% 764 698 16.7% 793 636 3.8% 12 Ratio of salaries and wages expensed to total wages (L9/L11) Ratio of salaries and wages capitalized to total wages (L 10IL11) Ratio of salaries and wages charged to all other to total wages (L 10a IL 11) 13 14 78% 75% 70% 79% 80% 78% 18% 19% 18% 18% 17% 19% 4% 6% 12% 3% 3% 3% NOTES: -Amounts represent labor as booked plus estimated adjustments for the labor portion of Stores distributed from Stores via material burdens and from Clearing accounts via allocations. - Percent represents increase of each year over the prior year in Columns (c ), (e), (g), (i), (k), and (m). - Line 1Oa -All other labor is composed primarily of non-capital balance sheet accounts (e.g. deferred debits, liabilities, clearing accounts, etc.) and non-regulated O&M. NCUC Form E-1 Item No. 12c Page 2 of 2 Item No.12c DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For The Calendar Years 2011 Through 2015 And The Test Year Ended December 31, 2016 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Total DEP Employees 5,464 5,502 5,543 5,528 5,492 5,492 5,496 5,498 5,484 5,494 5,492 Dec-16 5,485 \ \Envision \Loca l\li!a?W~es2\Du ke En ergy\RAL_ 2584_ BBx18\$ EDD\$ Native Fi Ies \00\00\00\99. ntv .xlsx DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For the test year ended December 31, 2016 13. Item No.13 Provide the following tax data for the test year for total company, North Carolina retail, other retail jurisdictions, and FERC wholesale: a. Income taxes: 1. Federal operating income taxes deferred - accelerated tax depreciation 2. Federal operating income taxes deferred - other (explain) 3. Federal income taxes - operating 4. Income credits resulting from prior deferrals of federal income taxes 5. Investment tax credit net: Investment credit realized Investment credit amortized - pre-revenue Act of 1971 Investment credit amortized - revenue act of 1971 6. Provide the information in item 13.a(l) through 13.1(4) for state income taxes. 7. Reconciliation of book to taxable income as shown in "Format 13a(7) attached and a calculation of the book federal and state income tax expense for the test year using book taxable income as the starting point. 8. A copy of federal and state income tax returns including supporting schedules for the taxable year ended during the test year. 9. The quarterly gross receipts tax return for each quarter during the test year. b. An analysis ofNorth Carolina's other operating taxes. See format 13-b. c. Provide the calculation of deferred income tax expense for the test year. See Fmmat 13-c. d. Provide a reconciliation of beginning and ending test year accumulated deferred income tax. See Format 13-d. e. Provide the calculation of investment tax credits for the test year. f Provide a reconciliation of beginning and ending test year unamortized investment tax credits. See Format 13-d columnar headings. Please see attached "DEP Rate Case El 13(a)(l)-(a)(6) Fed & State Tax Expense" The attachment shows these amounts for Total Company. The breakout of the amounts by jurisdiction can be found in the Cost of Service Study in E-1 Item 45(a). Please see attached "DEP Rate Case El 13(a)(7) Fed & State Taxable Inc_Exp" Please see attached "DEP Rate Case El 13(a)(8) Federal Proforma 12 Month Return" Please see attached "DEP Rate Case El 13(a)(8) NC Proformal2 Month Return w Supporting Sch". DEP will not file its 2016 tax returns until later this year. The latest available (2015) returns are attached. Please see attached "DEP Rate Case El 13(a)(9) NC Proforma Franchise Return" DUKE ENERGY PROGRESS, LLC Item No.13 (Continued) DEP will not file its 2016 return until later this year. The latest available (2015) return is attached. Please see attached "DEP Rate Case El 13(b) NC Other Operating Taxes" Please see attached "DEP Rate Case El 13(c) Reconciliation DIT Expense" Please see attached "DEP Rate Case El 13(d) Reconciliation ADIT final" Please see attached "DEP Rate Case El 13(e) Calculation ofITC" Please see attached "DEP Rate Case El 13(f) Reconciliation ofITC" DUKE ENERGY PROGRESS, LLC Item No. 13(a)(l)-(4) Docket No. E-2, Sub 1142 Item No. 13(a)(6) NCUC Form E-1 Data Request For the test year ended December 31, 2016 Analysis of Operating Federal & State Current & Deferred Income Tax Expense (Excludes Non-Operating Taxes) Description Current Current Current Current Deferred Deferred Deferred Current & Deferred Federal North Carolina South Carolina Total State Federal State Total Total Current Year Tax Provision Investment Tax Credit Amortization Tax Basis Balance Sheet Adjustments (21,526,633) (1,547,842) 94,723 (1,453, 119) Provision to Tax Return True Ups Audit Settlement Adjustments (44,279,514) 13,197,713 (973,684) (23,084,250) 1,357,980 (814,227) 146,494 (23,898,477) 1,504,474 FIN 48 North Carolina State Rate Change Rounding Adjustments Total 1 (53,582,117) 2 (23,274,110) 1 (573,009) 317,492,674 (5,304,895) (104,224) 43,166,019 (13,414,637) 26,429,281 6,245,168 (17,843,337) (45,857) 21,256,906 343,921,955 (5,304,895) (150,081) 64,422,925 (13,414,637) (11,598,169) 3 (23,847,119) 348,080,105 29,796,993 320,942,203 (5,304,895) (150,081) (3, 755,066) 1,287,550 (973,684) (11,598,169) 4 377,877,098 300,447,862 1,223,186,084 (840,004,091) (5,304,895) (53,582,117) (23,847, 119) 1,223,186,084 (840,004,091) (5,304,895) 377,877,098 300,447,862 Tiepoints to FERC Form 1: Page Page Page Page Page 114, 114, 114, 114, 114, line line line line line 15 16 17 18 19 Total per FERC Form 1 check to above (53,582,117) (23,847, 119) (53,582,117) (23,847,119) DUKE ENERGY PROGRESS, LLC Item No. 13(a)(5) Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For the test year ended December 31, 2016 DR{CR) Acct 255 1 Investment credit realized $ 2 Investment credit amortized - pre-revenue Act of 1971 3 Investment credit amortized - revenue act of 1971 (20,100,184) See details at Item No. 13e NONE $ 5,304,895 See details at Item No. 13/ Item No. 13(a)(7) DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For the test year ended December 31, 2016 Calculation of Federal Taxable Income and Current Federal Tax Expense Description Net Income per FERC Financial Statement Earnings of Subsidiaries Federal Income Taxes (409) State Income Taxes (409) Deferred Income Taxes (410 & 411)) Investment Tax Credit Amortization Reallocation of Interest Expense Move Subsidiary Income to Parent Rounding Subtotal Adjustments Pre-Tax Book Income Total Deductible State Tax Permanent Differences: P11A02: COLI Policy Gains/Death Benefits P11A03: Duke Energy COLI Interest P11A18: Tax Exempt Interest P11A20: Lobbying P11A22: Meals & Entertainment P11A32: Penalties P11A62: Tax Exempt Int. -Decomm. Deduct P11A64: Exec. Life Insurance Exp. P11A77: AFUDC Equity P11A95: AfterTaxADC,M&E,ITC Permanent P11B17: LESOP Depreciation Total Permanent Differences Temporary Differences: T11A02: Bad Debts - Tax over Book T11A18: Imputed Interest Income T11 B06: Surplus Materials Write-off Liab T11 B08: Surplus Materials Write-Off Asset T11B17: Sec 481 (a) Roll-Average Meth of Accntng for Inventories T12A05: Passthrough Income from K-1 T13A04: AFUDC Interest T13A08: Book Depreciation/Amortization T13A12: Book Gain/Loss on Property T13A14: Contributions in Aid (CIAC's) T13A18: Capitalized Hardware/Software T13A19: After Tax ADC,M&E, ITC Temporary T13A26: Tax Interest Capitalized T13A28: Tax Depreciation/Amortization T13A30: Tax Gains/Losses T13A51: Nuclear Fuel Book Burned T13B08: ASSET RETIREMENT OBLIGATION T13B09: Book Depreciation Charged to Other Accounts T13B23: Non-Cash Overhead Basis Adj T13B26: Equipment Repairs - Annual Adj T13B31: Impairment of Plant Assets T13B32: T & D Repairs 481(a) (pursuant to 3115) T13B33: T & D Repairs - Annual Adj. T13B43: Section 481(a) Casualty Losses T13B45: Asset Retirement Obligation - Coal Ash T1SA15: Mark to Market - ST T15A22: Mark to Market - LT Reference FERC Form 1, Pg. 117, lines 27,78, column C FERC Form 1, Pg. 117, lines 36, column C FERC Form 1, Pg. 114, line 15, column C FERC Form 1, Pg. 117, line 53, column C FERC FERC FERC FERC Form Form Form Form 1, 1, 1, 1, Pg. Pg. Pg. Pg. 114, 117, 114, 117, line line line line 16, column C 54, column C 17-line 18, column C 55-line 56, column C FERC Form 1, Pg. 114, line 19, column C Utility Non-Utility Total Reference (226,870, 753) (450,644) 599,400, 762 (450,644) (53,582, 117) (4,877,441) (58,459,558) (23,847, 119) (1,164,465) (25,011,584) 383,181,993 (5,304,895) (253,989, 158) 5,746,341 388,928,334 (5,304,895) 826,271,515 253,989, 158 463,751 0 463,751 1 1 46,458,703 872, 730,218 253, 706, 701 26,835,948 300, 165,405 899,566, 167 1,453,118 550,162 2,003,280 2,233,043 (7,273,294) 2,099,944 (7,273,294) 2,099,944 1,809,252 279,600 51,469 1,809,252 2,512,643 51,469 (3,670,125) 748,492 (49,614,088) 16,488,105 1,173,454 (35,674, 148) (3,670, 125) 748,492 (49,614,088) 16,488,105 1,173,454 16,224,477 (51,898,625) (131,687) (131,687) 13,290 1,770,155 7,370,071 13,290 1,770,155 7,370,071 83,033 (16,851,277) 640,659,458 (1, 156,277) 23,350,616 611,070 (16,488,105) 32,828,105 (1,437,103,214) (11,891,377) 196,415,200 119,235,359 7,240,252 8,833,058 (140,000,000) (3,691,872) 640, 134,670 83,033 (16,851,277) 524,788 (1, 156,277) 23,350,616 611,070 (16,488, 105) 32,828,105 (1,437,103,214) (11,891,377) 196,415,200 119,235,359 7,240,252 8,833,058 (140,000,000) (3,691,872) FERC Form 1, Pg. 261, line 1, column b (14,700,000) 13,545,381 20,576,762 (14,700,000) 13,545,381 20,576,762 (87,740,332) (87,740,332) 1 of6 Item No. 13(a)(7) DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For the test year ended December 31, 2016 Calculation of Federal Taxable Income and Current Federal Tax Expense Description T15A23: Mark to Market Reg - LT T15A46: Design Basis Amort T15A65: Hedging T15A96: Clean Coal Rider T15B04: Reg Asset -Acer Pension FAS158 - FAS87Qual T15B07: Cash Flow Hedge - Reg AsseULiab T15B12: Reg Asset Save-A-Watt Program T15B21: Deferred Asset-SC DERP T15B27: Reg Asset Rate Case Expense - SC T15B28: Reg Asset - Rate Case Expense T15B29: Reg Asset-Pension Post Retirement PAA-FAS87Qual and 0th T15B30: Reg Asset - Ice Storm Costs T15B37: Reg Asset-Pension Post Retirement PAA-FAS87NQ and 0th T15B38: Reg Asset-Pension Post Retirement PAA-FAS 106 and 0th T15B40: Reg Asset -Acer Pension FAS158 - FAS87NQ T15B41: Reg Asset -Acer Pension FAS158 - FAS 106 T15B45: Reg Asset - Plant Related Retirements T15B52: Storm Cost Deferral- Asset T15B53: SC Pollution Control Deferral T15B54: Charitable Cont Addback ST T15B55: Bond Amortization T15B67: Reg Liab - Ratable Spare Parts T15B70: Reg Asset - Harris COLA - Wholesale T15B71: Reg Asset - Harris COLA- Retail T17 A01: Vacation Carryover - Reg Asset T17 A02: Accrued Vacation T17A12: Miscellaneous Current Taxable Inc. Adj - OTA T17 A39: Severance Accrual ST T17 A40: SEVERANCE RESERVE - LT T17A41: Unbilled Fuel Revenue - NC T17A54: MGP Sites T19A02: Deferred Compensation T19A53: Litigation I Legal Reserve-ST T19A55: Workers Com Reserve T19A56: Workers Comp - ST T19A86: Deferred Fuel Asset - LT T19A87: Deferred Fuel Liability - LT T19A93: DEFERRED FUEL COST RULE 21 E.F. C. T19A94: UNBILLED REVENUE - FUEL T19A96: Lawsuit Contingency T19A96: Lawsuit Contingency T19B01: FAS 5 Non-Income Tax Reserves T20A30: REPS Incremental Costs T20A31: NC REC Liability T20A32: Return on Solar Assets T20A35: Reg Asset Deferred VOP Costs T20A38: Regulatory Asset - Deferred Plant Costs T20A38: Regulatory Asset - Deferred Plant Costs T20A43: Renewable Energy Adjustments-liab T20A44: Reg Asset Nuclear Levelization on Plant Outages Reference Utility 88,625,672 721,298 Non-Utility Total 88,625,672 721,298 229,939 (17,317) (687,316) (25,651,653) (550,586) (45,756) 595,603 (19,852,997) 269,976 (993,950) (37,707,604) 50,715 (24,464, 198) 12,224,697 (12) (2,830, 765) 229,939 (17,317) (687,316) (25,651,653) (550,586) (45,756) 595,603 (19,852,997) 269,976 (993,950) (37,707,604) 50,715 (24,464, 198) 12,224,697 (12) (2,830,765) (1,053,971) (7,071,376) (40,630,006) 273,865 580,535 (1,053,971) (7,071,376) (40,630,006) 273,865 580,535 (13,655,352) (3,308, 799) (172,701) (1,429,015) (13,655,352) (3,308,799) (172,701) (1,429,015) (235,777) (235,777) 92,697,821 (58,299,756) 92,697,821 (58,299,756) 297, 153 6,060,303 (152,200) 2, 100,475 297,153 6,060,303 10,220,924 (152,200) 2,100,475 749,922 (2,886,989) 45,583,835 (133, 127,499) 31,148,453 24,116,348 749,922 (2,886,989) 45,583,835 (133,127,499) 31,148,453 24,116,348 10,220,924 Reference 2 of6 Item No. 13(a)(7) DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For the test year ended December 31, 2016 Calculation of Federal Taxable Income and Current Federal Tax Expense Description T20A45: End of Life Nuclear Fuel Cost Reserve T20A46: Reg Asset NCEMPA Purchase Deferrals T22A01: Emission Allowance Expense T22A03: Gain on Emission Allowances T22A09: Charitable Contribution Accruals T22A 16: Self Developed Software T22A23: Retirement Plan Expense - Overfunded T22A28: Retirement Plan Expense - Underfunded T22A29: Non-qualified Pension - Accrual T22A36: Spent Fuel Canisters T22A56: Environmental Reserve T22A68: Accrual NQ Pension T22A72: COLI Death Benefits T22B13: ANNUAL INCENTIVE PLAN COMP T22B15: PAYABLE 401 (K) MATCH T22B27: Tax Interest Accrual - Cur Liab T22B29: Tax Int Accrual - Non-cur Liab T22B36: Deferred Book Gain/Loss T22B43: DOE Settlement T22E02: OPEB Expense Accrual T22E06: FAS 112 Medical Expenses Accrual T22E14: Accrual OPEB ST T22E16: Accrual Post Retirement ST T22H05: Non-Qualified Fund MTM Earnings T22H07: Decommissioning Qualified Fund T22H09: Decommissioning Liability T22H11: Asset Retirement Costs -ARO T22H12: ARO Regulatory Asset T22H45: Asset Retirement Costs - Coal Ash T22H46: ARO Regulatory Asset - Coal Ash Total Temporary Differences Reference Non-Utility (34,620,947) 12,614,708 (3, 745,891) 406,414 1,739,218 (38,848) Total 1,785,639 (30,677,230) 63,963 (2,499,899) 22,125,000 (34,620,947) 12,614,708 (3,745,891) 406,414 1,739,218 (38,848) (610,000) 16,696,584 1,216,944 (610,000) 16,696,584 1,216,944 22,125,000 107,467 Other Pre-Tax Adjustments: Net Operating Loss Utilization Prior Year State True Up Total Other Pre-Tax Adjustments (1,539,442) (2,549,076) 2,688,795 (6,962,854) 107,467 (1,539,442) (2,549,076) 2,688,795 (6,962,854) (15,110,112) (166,870,677) 101,287,096 33,844,918 (79,635,635) 232,945,264 (434,513,784) (1,078,714,563) 11,361,786 (15,110,112) (166,870,677) 101,287,096 33,844,918 (79,635,635) 232,945,264 (434,513,784) (1,067,352,777) 126,802,083 23,898,477 150,700,560 710,343 710,343 Reference 126,802,083 24,608,820 151,410,903 --~(8_6_3~,8_7_7~,7_0_4~)___2_1_4~,4_3~0,~3_67 _ _~(~6_49~.~44_7~,_33_7~) FERC Form Total Book/Tax Differences (37,606, 189) 35% Federal Taxable Income Federal Tax Rate Federal Tax-Current (12,440,386) 35% (50,046,575) 35% FERC Form 1, Pg. 261, line 20, column b 1, Pg. 261, line 27, column b ---~(1_3~,1_6_2~,1_6_6~)--~<~4~,3_5~4,~1_35~)~-~(_17~,~5_16~,_30_1~) FERC Form 1, Pg. 261, line 30, column b Other Adjustments: UTP Federal Tax Expense (FIN 48) KTRA Federal Tax Expense (Known Tax Return Adjustments) Prior Year Federal Tax True Up Audit Settlement Entries Rounding Total Other Adjustments (973,684) (285,809) (52,643,981) 13,483,522 (33,615) (489,692) 1 1 (973,684) (319,424) (53, 133,673) 13,483,522 2 ---~(4_0~,4_1_9~,9_5_1~)_ _ _ _(~5_2~3,~3_06~)~-~(_40~.~94_3~,_25_7~) FERC Form 1, Pg. 261, line 31, column b ---~(5~3~,5~8~2~,1~1~7~)--~(~4~,8~7~7,~44~1)~-~(~58~.~4~59~.~55~8~) FERC Form 1, Pg. 261, line 33, column b Total Current Federal Income Tax Expense - Computed Current Federal Income Taxes - per FERC Form 1 Difference Utility 1,785,639 (30,677,230) 63,963 (2,499,899) FERC Form 1, Pg. 114, line 15, column C FERC Form 1, Pg. 117, line 53, column C (53,582,117) 0 (4,877,441) (58,459,558) 0 3 of6 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For the test year ended December 31, 2016 Item No. 13(a)(7) Calculation of State Taxable Income and Current State Tax Expense Description Reference Pre-Tax Book Income From Federal Tab Federal Permanent Adjustments Federal Temporary Adjustments Total Federal Book/Tax Differences From Federal Tab State Permanent Adjustments Tax Exempt Interest Investment Tax Credit State Modification Total State Permanent Adjustments State Temporary Adjustments Bonus Depreciation Pollution Control Rounding Total State Temporary Adjustments State Taxable Income State Apportionment Percentage Apportionable State Income State Tax Rate State Tax-Current From Federal Tab North Carolina Utility 872,730,218 16,224,477 (1,078,714,563) (1,062,490,086) 1,201,944 (11,676,150) (10,474,206) (1,957,785) 31,516,278 3 29,558,496 (170,675,578) 84.6380% (144,456,395) 4.0% (5,778,256) North Carolina Non-Utility 26,835,948 (51,898,625) 11,361,786 (40,536,839) North Carolina Total 899,566, 167 (35,674, 148) (1,067,352, 777) (1, 103,026,925) - 1,201,944 (11,676, 150) (10,474,206) - (1,957,785) 31,516,278 3 29,558,496 (13,700,891) 84.6380% (11,596, 160) 4.0% (463,846) (184,376,468) 84.6380% (156,052,555 4.0% (6,242, 102) Other State Adjustments Combined Net Operating Loss Adjustment Prior Year State Tax True Up KTRA State Tax Expense (Known Tax Return Adjustments) Rounding Total Other State Adjustments 4,230,414 (23,084,250) 1,357,980 2 (17,495,854) (608,920) 4,230,414 (23, 779,860) 1,444,670 2 (18, 104,774) Total Current State Income Tax - Computed (23,274,11 Ol (1,072,766) (24,346,8761 (695,610) 86,690 - 4 of 6 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For the test year ended December 31, 2016 Item No. 13(a)(7) Calculation of State Taxable Income and Current State Tax Expense Description Reference Pre-Tax Book Income From Federal Tab Federal Permanent Adjustments Federal Temporary Adjustments Total Federal Book/Tax Differences From Federal Tab From Federal Tab South Carolina Utility 872,730,218 16,224,477 (1,078,714,563) (1,062,490,086) State Permanent Adjustments Tax Exempt Interest Investment Tax Credit State Modification Total State Permanent Adjustments 1,420,685 (11,676,150) (10,255,465) State Temporary Adjustments Bonus Depreciation Other Depreciation Adjustment Section 481(a) Casualty Losses Rounding Total State Temporary Adjustments 205,006,477 747,063 9,297,290 3 215,050,833 State Taxable Income State Apportionment Percentage Apportionable State Income State Tax Rate State Tax-Current South Carolina Non-Utility 26,835,948 (51,898,625) 11,361,786 (40,536,839) South Carolina Total 899,566, 167 (35,674, 148) (1,067,352, 777) (1, 103,026,925) - 1,420,685 (11,676, 150) (10,255,465) - 205,006,477 747,063 9,297,290 3 215,050,833 15,035,500 12.6000% 1,894,473 5.0% 94,724 (13,700,891) 12.6000% (1,726,312) 5.0% (86,316) 1,334,610 12.6000% 168,161 5.0% 8,408 (814,227) 146,494 (828,961) 155,846 (1) (673, 116) (664,7081 Other State Adjustments Prior Year State Tax True Up KTRA State Tax Expense (Known Tax Return Adjustments) Rounding Total Other State Adjustments (667,733) (14,734) 9,352 (1) (5,383) Total Current State Income Tax - Computed (573,009) (91,699) 5 of 6 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For the test year ended December 31, 2016 Item No. 13(a)(7) Calculation of State Taxable Income and Current State Tax Expense North Carolina Current State Taxes South Carolina Current State Taxes Total Current State Income Taxes - Per FERC Form 1 Difference FERG Form 1, Pg.114, line 16, column G FERG Form 1, Pg. 117, line 54, column G Total Utility (23,274, 110) (573,009) (23,847, 119) Total Non-Utility (1,072,766) (91,699) (1,164,465) Total Total (24, 346, 876) (664,708) (25,011,584) (23,847, 119} 11,164,465} 125,011,584} 0 0 0 Reconciliation to Current State Taxes per Federal Tab: Total Current State Taxes Above (23,847, 119) (1,164,465) (25,011,584) Per Federal Tab - Row 21 "Total Deductible State Tax'' Per Federal Tab - Row 149 "Prior Year State True Up" Per Federal Tab - Total (1,453,118) (23,898,477) (25,351,595) (550, 162) (710,343) (1,260,505) (2,003,280) (24,608,820) (26,612, 100) Difference 1,504,476 96,040 1,600,516 NOTE NOTE: KTRA State Tax Expense (not deducted for federal purposes) 6 of 6 DUKE ENERGY PROGRESS, LLC Docket No E-2, Sub XXXX NCUC Form E-1 Data Request Fcc~h~~e:ye,1ed~m220 U.S. Corporation Income Tax Return Department of the Treasury Internal Revenue Service A Check if: 1a Consolidated return (attach Form 851) o o Life/nonlife consolidated return o Personal hold in~ c.o.. (attach Sch PH o o Personal service corp. (see instruction~) o o b 2 3 4 n s n NC Initial return (2) 28202 n Final return (3) n (4) Name change I 1a I n 19 1999 24,894,448,218 $ Address change i???? 5,279,884,439 5,279,884,439 2,274,594,342 c 3 Gross profit. Subtract line 2 from line 1c 3 3,005,290,097 0 4 Dividends (Schedule C, line 19). 4 179,568 5 6 Interest 5 4,330,917 Gross rents 6 11 ,686 ,976 7 Gross royalties 7 0 8 9 Capital gain net income (attach Schedule D (Form 1120)). 8 -675' 132 9 -24 ,708 '281 Net gain or (loss) from Form 4797, Part II, line 17 (attach Form 4797). STATEMENT 1 10 11,430,931 11 3,007,535,076 10 Other income (see instructions- - attach statement) o 11 Total income. Add lines 3 throuah 10 ~I 12 Compensation of officers (see instructions- - attach Form 1125- E) ~ 12 0 13 Salaries and wages (less employment credits) 13 92,204,466 14 Repairs and maintenance. 14 757' 672 ' 107 LI 15 Bad debts 15 15, 184 ,883 c t 16 Rents 16 34,039,444 17 Taxes and licenses 18 Interest 0 r 19 Charitable contributions 19 5,549,544 I i m i t a t i 20 Depreciation from Form 4562 not claimed on Form 1125-A or elsewhere on return (attach Form 4562). 20 1 ,342,464,262 21 Depletion o 21 0 22 Advertising o 22 2,932,568 23 Pension, profit- sharing, etc., plans o 23 21 ,200,622 24 Employee benefit programs 24 74,658,298 f 0 (1) 08 2 n s t i Total assets (see instructions) 1c I 0 c Returns and allowances D Balance. Subtract line 1b from line 1a i n s t r u Gross receipts or sales o b Date incorporated Cost of goods sold (attach Form 1125-A) (S e e d Check if: 1a IC 550 SOUTH TRYON STREET, DEC 41A CHARLOTTE E 56-2155481 Duke Energy Progress, LLC c m e e ~ 2015 B Employer identification number Name, Number, street, and room or suite no. If a P.O. box, see instructions. City or town, state, or province, country and ZIP code or foreign postal code TYPE OR PRINT 0 2 I n D For calendar year 2015 or tax year beginning , ___,ending , 20__ ~Information about Form 1120 and its separate instructions is at www.irs.gov/form1120. .D .D .D .D Schedule M- 3 attached I 1 15 4 0 12 3 _ _-_ _ _ _o_M_'es_'l'.l_n11_'g ._I 0 n s 0 n d e d LI c t I 0 n s.) 25 Domestic production activities deduction (attach Form 8903) o 26 Other deductions (attach statement) 27 Total deductions. Add lines 12 through 26. 28 Taxable income before net operating loss deduction and special deductions. Subtract line 27 from line 11. 29a b Net operating loss deduction (see instructions) Special deductions (Schedule C, line 20) o c Jx, cP r a STATEMENT 2 STATEMENT 3 17 141 ,572,492 18 226,466,237 25 0 26 430,387,904 28 3' 144' 332 '827 -136,797,751 .~ 27 I 29a o l29b I I O ( 125,698 t Add lines 29a and 29b 29c 30 Taxable income. Subtract line 29c from line 28 (see instructions). 30 125,698 -136,923,449 31 Total tax (Schedule J, Part I, line 11) 31 0 e- 32 Total payments and refundable credits (Schedule J, Part II, line 21) 32 22,549 33 Estimated tax penalty (see instructions). Check if Form 2220 is attached ~~ 34 Amount owed. If line 32 is smaller than the total of lines 31 and 33, enter amount owed 35 Overpayment. 36 Enter amount from line 35 you want: Credited to 2016 estimated tax ~ R~y f I m LI t n s,e d a n I e t s Sign Here Paid ~ r3~3'-+_ _ _ _ _ _o~ [J" ,__3_4--+________ o_ <---'-3~5-+_ _ _ _ _2_2_,_5_4_9_ If line 32 is larger than the total of lines 31 and 33, enter amount overpaid O Refunded ~ 36 22, 549 Under penalties of perjury, I declare that I have examined th is return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other th an taxpayer) is based on all information of which preparer has any knowledge. ~ ~DIRECTOR S&L TAXES Signature of officer Date T COOPER MONROE Ill IPrint/Type preparer's name I Preparer's signature ay the IRS discuss th is return ith the preparer shown below see instructions)? ,.Title I Date Check if n Yes n No PTIN Preparer >----------------~----------------~-----~s_e_lf_-_e_m,~p_lo~y_ed~-------Use Only Firm's name ~ I Firm's EIN ~ !Firm's address ~ For Paperwork Reduction Act Notice, see separate instructions. ERF I Phone no. F5.00.01 US1120P1 Form 1120 (2015) DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) 56-2155481 Duke Energy Progress, LLC Form 1120 (2015) Dividends and Special Deductions (see instructions) (a) Dividends from less- than- 20%- owned domestic corporations (other than debtfinanced stock) o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o 2 ~ Dividends received (c) I .. 179 , 5681 Dividends from 20%- or- more- owned domestic corporations (other than debtfinanced stock) o o o o o o o o o o o o o o o o o o o o o o o o o o o o o Page 2 Special deductions (a) x (b) 70 125 , 698 80 0 O see instructions Dividends on certain preferred stock of less- than- 20%- owned public utilities o 0 42 0 5 Dividends on certain preferred stock of 20%- or- more- owned public utilities o 0 48 0 6 Dividends from less- than- 20%- owned foreign corporations and certain FSCs 0 70 0 7 Dividends from 20%- or- more- owned foreign corporations and certain FSCs o 0 80 0 8 Dividends from wholly owned foreign subsidiaries o o o o o 0 100 0 9 Total. Add lines 1 through 8. See instructions for limitation oI 100 3 Dividends on debt- financed stock of domestic and foreign corporations 4 10 0 Dividends from domestic corporations received by a small business investment company operating under the Small Business Investment Act of 195~. 0 I 11 0 o+ I 100 I Dividends from affiliated group members . . . . . . . . . . . . . . . . . . . . . . . ; - - - - - - - - - -----+-------- 12 Dividends from certain FSCs 0 13 Dividends from foreign corporations not included on lines 3, 6, 7, 8, 11, or 12 o 0 14 Income from controlled foreign corporations under subpart F (attach Form(s) 5471) 0 15 Foreign dividend gross- upo o o o o o o o o o o o o o o o o o o 0 . ........ ;----------<. 16 IC- DISC and former DISC dividends not included on lines 1, 2, or 3 ......... ;----------+: 17 Other dividends 18 Deduction for dividends paid on certain preferred stock of public utilities 19 Total dividends. Add lines 1 through 17. Enter here and on page 1, line 4 20 Total special deductions. Add lines 9, 10, 11, 12, and 18. Enter here and on page 1, line 29b o I 100 I 0 ........... 0 0 179,568 ooooooooo ~ IHHHHHHHHHH1~~H' ~~~H Form F5.00.01 1120 (2015) US1120P2 DUKE ENERGY PROGRESS, LLC 56-2155481 Item No Duke Energy Progress, LLC 13(a)(8) Page3 Form 1120 (2015) Tax Computation and Payment (see instructions) Part I - Tax Computation ~I Check if the corporation is a member of a controlled group (attach Schedule 0 (Form 1120)) o 1 2 Income tax. Check if a qualified personal service corporation (see instructions) 3 Alternative minimum tax (attach Form 4626) o 4 Add lines 2 and 3 5a Foreign tax credit (attach Form 11181 oooo . r rs~ sb b Credit from Form 8834 (see instructions) oo c General business credit (attach Form 3800) o "I sc I d Credit for prior year minimum tax (attach Form 8827) . 1 Bond credits from Form 8912 : Ise I e . 1 sd I I 0 0 0 0 ol 66 , 390 , 655 I ol ol 6 Total credits. Add lines 5a through 5e o o o o o o o 6 66,390,655 7 Subtract line 6 from line 4 .............. 7 0 8 Personal holding company tax (attach Schedule PH (Form 1120)). 8 0 9a Recapture of investment credit (attach Form 4255) o o o o o o o o 0 0 b Recapture of low- income housing credit (attach Form 8611) ooo c Interest due under the look- back method- - completed long-term contracts (attach Form 8697) o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o Interest due under the look- back method- - income forecast method (attach Form ,_9_c--+--------o--1 d e 88661 o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o Alternative tax on qualifying shipping activities (attach Form 8902) ,_9_d-+-_ _ _ _ _ __,o ,_9_e--+_ _ _ _ _ _ _ _o_, Other (see instructions- - attach statement) ._9_f___._ _ _ _ _ _ _ _o--1 10 11 Total. Add lines 9a through 9f o o o o o o o o o o o o o o o o o o Total tax. Add lines 7, 8, and 10. Enter here and on page 1, line 31 o o o o o o o o o o o o 0 0 Part 11- Payments and Refundable Credits 12 2014 overpayment credited to 2015 oo 112 0 13 2015 estimated tax payments o o o o o 13 0 14 2015 refund applied for on Form 4466. 14 15 Combine lines 12, 13, and 14 15 16 Tax deposited with Form 7004 ooooo 16 17 Withholding (see instructions) ooooo 17 18 Total payments. Add lines 15, 16, and 17 18 19 Refundable credits from: 19b 22,549 c Form 8827, line 8c 19c 0 d Other (attach statement- - see instructions). 19d 0 b Form4136 20 Total credits. Add lines 19a through 19d 21 Total payments and credits. Other Add lines 18 and 20. Enter here and on page 1, line 32 oo Information (see instructions) Check accounting method. 2 a b c 0) 0 0 0 0 0 a Form 2439 Schedl.JleK I I( I I I I 0 a D ~::i~::~n:~:~~t: ~:d:n~oen:~ ~;~~1_0~- Cash b EJ Accrual c D Other (specify) 20 22,549 : I21 I 22,549 ~ ________________ _______ Ives~ ___________________________________________________________________ . . Business activity ~ ___ E~e_c~1: _u!1~t~ ______________________________________________________________________ _ Product or service ~ Electric Ut1l1ty 3 Is the corporation a subsidiary in an affiliated group or a parent- subsidiary controlled group?. o o o o o o o o o o o o o o o o o o ,_.,..x--+~= If "Yes," enter name and EIN of the parent corporation ~ __2_0:~~7_7_2_1 ~ ___________________________________________ _ 4 a At the end of the tax year: Duke Energy Corporation Did any foreign or domestic corporation, partnership (including any entity treated as a partnership), trust, or tax-exempt organization own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all classes of the corporation's stock entitled to vote? If "Yes," complete Part I of Schedule G (Form 1120) (attach Schedule G) o o o o o o o o o o b x Did any individual or estate own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all classes of the corporation's stock entitled to vote? If "Yes," complete Part II of Schedule G (Form 1120) (attach Schedule G) Form F5.00.01 Ix 1120 (2015) US1120P3 DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) Form 1120 (2015) 56-2155481 Duke Energy Progress, LLC Page Other Information continued (see instructions) [Ve;~ I I At the end of the tax year, did the corporation: 5 a 4 ~ Own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all classes of stock entitled to vote of any foreign or domestic corporation not included on Form 851, Affiliations Schedule? For rules of constructive ownership, I I see instructions. If "Yes," complete (i) through (iv) below. (ii) Employer Identification Number (if any) (i) Name of Corporation (iv) Percentage Owned in Voting Stock (iii) Country of Incorporation 0.000 0.000 0.000 b I~ Own directly an interest of 20% or more, or own, directly or indirectly, an interest of 50% or more in any foreign or domestic partnership (including an entity treated as a partnership) or in the beneficial interest of a trust? For rules of constructive ownership, I I see instructions. If "Yes," complete (i) through (iv) below. (ii) Employer Identification Number (if any) (i) Name of Entity (iv) (iii) Cou_ntry of Organization Maximum Percentage Owned in Profit, Loss, or Capital 0.000 0.000 0.000 During this tax year, did the corporation pay dividends (other than stock dividends and distributions in exchange for stock) in 6 excess of the corporation's current and accumulated earnings and profits? (See sections 301 and 316.) oo If "Yes," file Form 5452, Corporate Report of Nondividend Distributions. If this is a consolidated return, answer here for the parent corporation and on Form 851 for each subsidiary. At any time during the tax year, did one foreign person own, directly or indirectly, at least 25% of (a) the total voting power 7 of all classes of the corporation's stock entitled to vote or (b) the total value of all classes of the corporation's stock? o For rules of attribution, see section 318. If "Yes," enter: (i) Percentage owned ~ ___ 99~ ________ and (ii) Owner's country ~ __________________________________________ _ (c) The corporation may have to file Form 5472, Information Return of a 25% Foreign- Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business. Enter the number of Forms 5472 attached ~- _________________ _ ~ Check this box if the corporation issued publicly offered debt instruments with original issue discount. o o o o o o o o o 8 EJ If checked, the corporation may have to file Form 8281, Information Return for Publicly Offered Original Issue Discount Instruments. Enter the amount of tax- exempt interest received or accrued during the tax year 9 ~$ ________________o_________________ _ ~ ____________________________________ _ 10 Enter the number of shareholders at the end of the tax year (if 100 or fewer) 11 If the corporation has an NOL for the tax year and is electing to forego the carryback period, check here o o o o o o o o If the corporation is filing a consolidated return, the statement required by Regulations section 1.1502- 21 (b)(3) must be ~ D attached or the election will not be valid. 12 Enter the available NOL carryover from prior tax years (do not reduce it by any deduction on line 29a.) ~$ _______________ 13 Are the corporation's total receipts (page 1, line 1a, plus lines 4 through 10) for the tax year and its total assets at the end 9_ of the tax year less than $250,000?. o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o - ,. :::~:~~:::::,:::,~::~:~;~;:~:::~:;;;::::;~~:~:c~:~~:~~~:~;~:~.~:::~;:;:~:~:i~!~~1;.-----I I~ I 0 If "Yes," complete and attach Schedule UTP. o o o o o o o o 16 Did the corporation make any payments in 2015 that would require it to file Form(s) 1099? o o o o o o o o o o o o o o o o o o o o If "Yes," did or will the corporation file all required Forms 1099? During this tax year, did the corporation have an 80% or more cha.n;e. i~ ~V:n~r~hip: i~c.ludi~~ ~ ~h~n~~ du~ io" r~d~~~ti~n. 0?f iis" 17 own stock? During or subs~q.u~n.t io ihis ta x ~~a;, 18 of its assets in a taxable, non- taxable, or tax deferred transaction? Did the corporation receive assets in a section 351 transfer in which .a~y. of th~ 15a b 0 0 market value of more than $1 million? b~t b~fo re the. fiiin?g 0 0 0 of thi; r~t~r~, 0 di d th e ~~r;o~aii~n ?dis;o~~ 0 0 0 ~f :ri~r~ ih~n. 6S% (b y ~~lu e) 0 0 t~a~;fe rr~d. a.s;eis h~d. a. f~ir .m.a;k~t b~sis ~r. f~ir. 0 o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o lxyl YY I XI ~X I IX ~ I IX ~ I IX Form1120 (2015) F5.00.01 US1120P4 DUKE ENERGY PROGRESS LLC 2010 56-2155481 Duke Energy Progress, LLC Item No 13(a)(8) Page 5 End of tax year I Assets (d) Cash 2a b Trade notes and accounts receivable Less allowance for bad debts 3 Inventories ........... 966, 400 ,711 1 , 088, 273 ,782 4 U.S. government obligations oo 0 0 5 Tax- exempt securities (see instructions). 0 0 6 Other current assets (attach statement) 667,920,280 382,337,852 ......... 0 0 loan~ 7 Loans to shareholders 8 Mortgage and real estate oooo 0 0 9 Other investments (attach statement) o 1 ,707, 626 ,737 2,042,005,604 10a Buildings and other depreciable b Less accumulated depreciatiot], 11a Depletable asset~ o o o o o o o Less accumulated depletiO[l oo b 12 Land (net of any amortizatiot],) o 13a Intangible assets (amortizable only) b 14 15 24, 175, 945 , 656 asset~ 15 , 160 , 245 , 060 0 Less accumulated amortization 3 , 121 , 072 , 944 Other assets (attach statement) oo Total assets o o o o o o o o o o o o 22,380,094,443 Liabilities and Shareholders' Equity 16 Accounts payabl~ o o o o o o o o o o o o 601 ,567,394 17 Mortgages, notes, bonds payable 1n less than 1 year 944,866,255 18 Other current liabilities (attach statement) o 211 ,475,254 607, 816 ,703 .......... 0 19 Loans from shareholders 20 Mortgages, notes, bonds payable 1n 1 year or more 6,515,918,192 21 Other liabilities (attach statement) o 9,911,185,629 22 Capital stock: 23 Additional paid- in capitalo o o o o o 24 Retained earnings - Appropriated (attach statement) 25 Retained earnings - Unappropriated ooooo 26 Adjustments to sh areh alders' eq u1ty (attach statement) 27 28 Less cost of treasury stock. o o o o o o o o o o Total liabilities and shareholders' equitx, o o o o a Preferred stock 0 b Common stock $c~~t:ll~ MH~ 304,481 ,008 2,784,376,571 3, 849 ,739 4,225,695 3,704,338,592 4,270,446,440 -257, 076 -232,257 0) O) 22, 380, 094, 443 24,894,448,218 Reconciliation of Income (Loss) per Books With Income per Return Note: The corporation may be required to file Schedule M- 3 (see instructions). 0 1 Net income (loss) per book.s. 2 Federal income tax per 3 Excess of capital losses over capital gains o 4 Income subject to tax not recorded on books this year (itemize): 5 a b c book~ o --------------------- ----------------------------------Expenses recorded on books this year not Tax- exempt interest 0 0 $ --------------- -------------------------------0 -------------------------------8 Deductions on this return not charged $ - - - - - - - - - - - - - - - - - -0- - 0 $ --------------0 Charitable contributions $ --------------0 Travel & entertainment $ --------------- b Charitable contributions $ Depreciation o ----------------------------------- Add lines 1 through ~ 0 against book income this year (itemize): a Depreciation Schedule M"! 0 0 0 ------------ -------------------------------0 -------------------------------9 Add lines 7 and 8 10 0 0 0 Income (page 1, line 28)- line 6 less line 9 Analysis of Unappropriated Retained Earnings per Books (Line 25, Schedule L) 1 Balance at beginning of year. 2 Net income (loss) per books. 3 Other increases (itemize): 4 included on this return (itemize): 0 deducted on this return (itemize): 0 6 7 Income recorded on books this year not 0 .1 5 Distributions: 566,483,807 --------------- ----------------------------------STATEMENT 18 ----------------------------------- Add lines 1, 2, and 3. 3,704,338,592 0 a Cash b Stock 0 c Property. 0 19 I ---------------.1 4,035,292,774 I 4,270,446,440 STATEMENT 6 0th er decreases (1tem1ze) 4,034,916,815 7 Add lines 5 and 6 8 ' 305 ,739 ' 214 8 Balance at end of lear (line 4 less line 7) 4,035,292,774 Form1120 (2015) F5.00.01 US1120P5 DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) (Form 1120) Department of the Treasury Internal Revenue Service OM B No. 1545- 0123 Capital Gains and Losses SCHEDULED .. Attach to Form 1120, 1120- C, 1120- F, 1120- FSC, 1120- H, 1120- IC- DISC, 1120- L, 1120- ND, 1120- PC, 1120- POL, 1120- REIT, 1120- RIC, 1120- SF, or certain Forms 990- T. Employer identification number Name 56-0165465 Duke Energy Progress, Inc. Pihl Short -Term Capital Gains and Losses -Assets Held One Year or Less ~he:lii~!~~~i~~~ for how to figure the amounts to enter on Th is form may be easier to complete if you round off cents to whole dollars. 1a 2015 .. Information about Schedule D (Form 1120) and its separate instructions is at www.irs.gov/form1120. (d) (e) Proceeds (sales price) Cost (or other basis) Totals for all short- term transactions reported on Form 1099- B for which basis was reported to the IRS and for which you have no adjustments (see instructions). How ever, if you choose to report all these transactions on Form 8949, leave th is line blank and o to line 1 b o o o o o o o o o o (g) Adjustments to gain or loss from Form(s) 8949, Part I, line 2, (h) Gain or (loss) Subtract column (e)from column (d) and combine the result with column (g) 0 0 1b Totals for all transactions reported on Form(s) 8949 with Box A checked o o o o o o o o o o o o o o o 0 0 0 0 0 2 Totals for all transactions reported on Form(s) 8949 with Box B checked o o o o o o o o o o o o o o o 0 0 0 0 0 0 0 140,902 3 Totals for all transactions reported on Form(s) 8949 with Box C checked o o o o o o o o o o o o o o 4 Short- term capital gain from installment sales from Form 6252, line 26 or 37 4 0 5 Short- term capital gain or (loss) from like- kind exchanges from Form 8824 5 0 6 Unused capital loss carryover (attach computation) 6 0 7 Net short- term capital gain or (loss). Combine lines 1a through 6 in column h 7 140,902 pijffjf o o o o o o o o o o o o o o o o o Long -Term Capital Gains and Losses -Assets Held More Than One Year See instructions for h ovv to figure the amounts to enter on the lines below Th is form may be easier to complete if you round off cents to whole dollars. (d) (e) Proceeds (sales price) Cost (or other basis) (g) Adjustments to gain or loss from Form(s) 8949, Part 11, line 2, column (g) (h) Gain or (loss) Subtract column (e)from column (d) and combine the result with column (g) Sa Totals for all long- term transactions reported on Form 1099- B for which basis was reported to the IRS and for which you have no adjustments (see instructions). How ever, if you choose to report all these transactions on Form 8949, leave th is line blank and go to line 8b o o o o o o o o o o 0 0 0 0 0 0 0 0 0 0 638,483 1,605,241 0 -1,054'186 Sb Totals for all transactions reported on Form(s) 8949 with Box D checked o o o o o o o o o o o o o o o 0 9 Totals for all transactions reported on Form(s) 8949 with Box E checked o o o o o o o o o o o o o o o 10 Totals for all transactions reported on Form(s) 8949 with Box F checked o o o o o o o o o o o o o o o 11 Enter gain from Form 4797, line 7 or 9 o o o o o o o o o o o o o o o o o o o o 238' 152 12 Long- term capital gain from installment sales from Form 6252, line 26 or 37. 0 13 Long- term capital gain or (loss) from like- kind exchanges from Form 8824 0 14 Capital gain distributions (see instructions) o o o o o o o o o o o o o o o o o 0 15 Net long- term capital gain or (loss). Combine lines 8a through 14 in column h P~HOU Summary of Parts I and II -816,034 ~I 140,902 16 Enter excess of net short-term capital gain (line 7) over net long-term capital loss (line 15) 17 Net capital gain. Enter excess of net long-term capital gain (line 15) over net short-term capital loss (line 7) o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o Add lines 16 and 17. Enter here and on Form 1120, page 1, line 8, or the proper line on other returns 17 -816,034 18 Note: If losses exceed gains, see Capital losses in the instructions. 18 -675' 132 For Paperwork Reduction Act Notice, see the Instructions for Form 1120. ERF Schedule D (Form 1120) (2015) F5.00.01 US120SD1 DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) Form 4626 Department of the Treasury Internal Revenue Service I Alternative Minimum Tax- Corporations ~Attach to the corporation's tax return. ~Information about Form 4626 and its separate instructions is at www.irs.gov/form4626. oMs N?. 1 I 545 0123 - 2015 Employer identification number 56-2155481 Name Duke Energy Progress, LLC Note: See the instructions to find out if the corporation is a small corporation exempt from the alternative minimum tax (AMT) under section 55(e). ..... Taxable income or (loss) before net operating loss deduction o !" ' ~: : : : -136,923,449 Adjustments and preferences: 2 a Depreciation of post- 1986 property. 2a b Amortization of certified pollution control facilities o o o o o o c Amortization of mining exploration and development costs 2b - 35' 345 ' 120 -26,096,888 2c 0 d Amortization of circulation expenditures (personal holding companies only) 2d 0 e Adjusted gain or loss o o o o o o o o o o o o f Long- term contracts 2e -17' 668 ,705 2f 0 g Merchant marine capital construction funds 2g 0 h Section 833(b) deduction (Blue Cross, Blue Shield, and similar type organizations only) 2h 0 Tax shelter farm activities (personal service corporations only) o o o o o o o o o o o Passive activities (closely held corporations and personal service corporations only) 2i 0 2j 0 2k 0 21 0 m Tax- exempt interest income from specified private activity bonds 2m 0 n Intangible drilling costs o o o o o o o o o o o o o o o o o o o o o o 2n 0 2o I3 -29,046 -216,063,208 4e 0 k Loss limitations .......................... Depletion o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o Other adjustments and preferences o o o o o o o o o o o o o o o o 3 Pre- adjustment alternative minimum taxable income (AMTI). Combine lines 1 through 2o 4 Adjusted current earnings (ACE) adjustment: I 4a I -271 ,219,466 b Subtract line 3 from line 4a. If line 3 exceeds line 4a, enter the difference as a negative amount (see instructions) o o o o o o o o o o o o o o o o o o o o o o 4b c Multiply line 4b by 75% (.75). Enter the result as a positive amount o o o o o o 4c - 55, 156 , 258 41,367,194 4d 0 a ACE from line 10 of the ACE worksheet in the instructions d Enter the excess, if any, of the corporation's total increases in AMTI from prior year ACE adjustments over its total reductions in AMTI from prior year ACE adjustments (see instructions). Note: You must enter an amount on line 4d (even if line 4b is positive) o o o o o o o o o o o o o o o o o o o o o o o o o e ACE adjustment. o o 5 6 7 If line 4b is zero or more, enter the amount from line 4c } If line 4b is less than zero, enter the smaller of line 4c or line 4d as a negative amount Combine lines 3 and 4e. If zero or less, stop here; the corporation does not owe any AMT oo -216,063,208 Alternative tax net operating loss deduction (see instructions) o o o o o o o o o o o o o o o o o 0 Alternative minimum taxable income. Subtract line 6 from line 5. If the corporation held a residual interest in a REMIC, see instructions 0 Exemption phase- out (if line 7 is $310,000 or more, skip lines 8a and 8b and enter - 0- on line 8c): 8 a Subtract $150,000 from line 7 (if completing this line for a member of a controlled group, see instructions). If zero or less, enter - 0- I I o o o o o o o o o o o o o o o ,_s_a--+--------0----;: b Multiply line Sa by 25% (.25) o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o l~s_b_~l______o__,. c Exemption. Subtract line 8b from $40,000 (if completing this line for a member of a controlled group, ooooo Sc 0 Subtract line 8c from line 7. If zero or less, enter - 0- 0 see instructions). If zero or less, enter - 010 11 Multiply line 9 by 20% (.20) o o o o o o o o o o o o o Alternative minimum tax foreign tax credit (AMTFTC) (see instructions) 12 Tentative minimum tax. Subtract line 11 from line 10 13 Regular tax liability before applying all credits except the foreign tax credit 9 10 11 12 13 14 Alternative minimum tax. Subtract line 13 from line 12. If zero or less, enter - 0-. Enter here and on Form 1120, Schedule J, line 3, or the appropriate line of the corporation's income tax return 14 9 ......... For Paperwork Reduction Act Notice, see separate instructions. ERF 0 0 0 0 0 Form F5.00.01 4626 (2015) US4626P1 DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) 56-2155481 Duke Energy Progress, LLC Adjusted Current Earnings (ACE) Worksheet Keep for Your Records ~See ACE Worksheet Instructions. -216,063,208 Pre- adjustment AMTI. Enter the amount from line 3 of Form 4626 ACE depreciation adjustment: 2 a b AMT depreciation oooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooo ACE depreciation: (1) Post-1993 property oooooooooooooooooooooooo l2b(1} (2) Post- 1989, pre- 1994 property o o o o o o o o o o o o o o 2b(2) 1 , 390, 761 , 939 22, 789, 069 (3) Pre- 1990 MAC RS property 2b(3) 71 , 617, 033 2b(4) o ooooooooooooooo (4) Pre- 1990 original ACRS property ~~+---1_,_4_2_8_,8_1_9_,_8_4_81 ..,I (5) Property described in sections 168(f)(1) c through (4) 2b(5) 0 (6) Other property 2b(6) 6,806,161 ............................. ~~~----------! (7) Total ACE depreciation. Add lines 2b(1) through 2b(6) oooooooooooooooooooo ~2_b~(~7)~_ _1_,4_9_1_,_9_74_,_2_0__,2 ACE depreciation adjustment. Subtract line 2b(7) from line 2a - 63 ' 154 ' 354 Inclusion in ACE of items included in earnings and profits (E&P): 3 a Tax- exempt interest income 3a 3,500,334 b Death benefits from life insurance contracts 3b 3,241 ,058 c All other distributions from life insurance contracts (including surrenders) 3c 0 d Inside buildup of undistributed income in life insurance contracts ooooooooooooooo Other items (see Regulations sections 1.56(g)- 1(c)(6)(iii) through (ix) for a 3d 3,092,498 e 4 a b 0 3e partial list) oooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooo ~-~----------1 Total increase to ACE from inclusion in ACE of items included in E&P. Add lines 3a through 3e Disallowance of items not deductible from E&P: 125,698 Certain dividends received ..................................................... I -4a ---+---------! Dividends paid on certain preferred stock of public utilities that are d deductible under section 247 ................................................... I -4b - - - + - - - - - - - - -0! Dividends paid to an ESOP that are deductible under section 404(k) ooooooooooooo ,__4_c_+-------------=-+------1_2_5_,_6_98_ Other adjustments based on rules for figuring E&P: 5 a b c 5a o Intangible drilling costs ooooooooooooooooooooooooooooooooooooooooooooooooooooooooo 5b Circulation expenditures ..................................................... I - - - - + - - - - - - - - -0! o Organizational expenditures ................................................... i -5c ----+-----------1 ................................................... I -5d - - - + - - - - - - - - -0! 5e o .............................................................. d LIFO inventory adjustments e Installment sales ~-~----------! Total other E&P adjustments. Combine lines 5a through 5e 5f 6 Disallowance of loss on exchange of debt pools 6 7 7 8 Acquisition expenses of life insurance companies for qualified foreign contracts ooooooooooooooooooooooooooooooo Depletion 9 Basis adjustments in determining gain or loss from sale or exchange of pre- 1994 property oooooooooooooooooooo 10 I 9 0 0 0 -1,961 ,492 Adjusted current earnings. Combine lines 1, 2c, 3f, 4f, and 5f through 9. Enter the result here and on line 4a of Form 4626 ooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooo ERF 8 0 I I I I I 10 I -271 ,219,466 F5.00.01 USACEP01 DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) 1125-A Form (December 2012) Cost of Goods Sold OM B No. 1545- 2225 ~ Attach to Form 1120, 1120- C, 1120- F, 11205, 1065, or 1065- B. Department of the Treasury Internal Revenue Service ~Information about Form 1125-A and its instructions is at www.irs.gov/form1125a. Name Employer identification number 56-2155481 Duke Energy Progress, LLC Inventory at beginning of year oooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooo Purchases I ................................................................................ I Cost of labor I I Additional section 263A costs (attach schedule) ooooooooooooooooooooooooooooooooooooooooooo 2 3 4 5 6 Other costs (attach schedule) ooooooooooooooooooooooooooooooooooooooooooo ~T~!.E.~~~.T. ~-~ ooooo 0 430,562,658 2 3 4 0 I Total. Add lines 1 through 5 oooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooo I: I 7 Inventory at end of year ooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooo 7 8 Cost of goods sold. Subtract line 7 from line 6. Enter here and on Form 1120, page 1, line 2 9a or the appropriate line of your tax return (see instructions) oooooooooooooooooooooooooooooooooo Check all methods used for valuing closing inventory: (i) (ii) (iii) 0 1 ,844,031 ,684 2,274,594,342 0 2,274,594,342 Ocost D Lower of cost or market D Other (Specify method used and attach explanation.) ~ ______________________________________________________ _ ~o ~o d Check if there was a writedown of subnormal goods oooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooo Check if the LIFO inventory method was adopted this tax year for any goods (if checked, attach Form 970)oooooooooooooooooooo If the LIFO inventory method was used for this tax year, enter amount of closing inventory computed e under LIFO o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o ~I_9d~I_ _ _ _ _ _ _ _ __ If property is produced or acquired for resale, do the rules of section 263A apply to the entity (see instructions)? Yes No b c D EJ Was there any change in determining quantities, cost, or valuations between opening and closing inventory? If "Yes," attach explanation o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o For Paperwork Reduction Act Notice, see separate instructions. Form D Yes EJ No 1125-A (12-2012) ERF F5.00.01 US1125A1 DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) Form Credit for Federal Tax Paid on Fuels 4136 Department of the Treasury Internal Revenue Service (99) ~ Information about Form 4136 and its separate instructions is at www.irs.gov/form4136. Name (as shown on your income tax return) 23 56-2155481 Claimant has the name and address of the person who sold the fuel to the claimant and the dates of purchase. For claims on lines 1c and 2b (type of use 13 or 14), 3d, 4c, and 5, claimant has not waived the right to make the claim. For claims on lines 1c and 2b (type of use 13 or 14), claimant certifies that a certificate has not been provided to the credit card issuer. Nontaxable Use of Gasoline Note. CRN is credit reference number. I(a) Type of use I a 2015 Attach men! Sequence No. Taxpayer identification number Duke Energy Progress, LLC Caution. OM B No. 1545- 0162 (b) Rate Off- highway business use I $ .1831 b Use on a farm for farming purposes .1831 c Other nontaxable use (see Caution above line 1) .1831 d Exported .1841 I (d) Amount of credit (c) Gallons 99: }I. 362 181 I 0 l(e) CRN 0 I I 411 Nontaxable Use of Aviation Gasoline 2 I(a) Type of use I (b) Rate 0 Other nontaxable use (see Caution above line 1) .193 0 c Exported .194 0 d LUST tax on aviation fuels used in foreign trade .001 0 Use in commercial aviation (other than foreign trade) b 3 I (d) Amount of credit (c) Gallons $ .15 a 1$ 0 I I I a a a l(e) CRN I I I I 354 324 412 433 Nontaxable Use of Undyed Diesel Fuel Claimant certifies that the diesel fuel did not contain visible evidence of dye. D Exception. If any of the diesel fuel included in this claim did contain visible evidence of dye, attach an explanation and check here ~ I(a) Type of use I a Nontaxable use b Use on a farm for farming purposes c Use in trains d Use in certain intercity and local buses (see Caution above line 1) e 4 JI ................................ (b) Rate $ .243 Exported I (c) Gallons 92 . 049 L r I (d) Amount of credit l!e) CRN .2431 .243 a 0 _, 0 360 353 .17 0 0 350 0 0 413 .244 I $ 22 ,368 Nontaxable Use of Undyed Kerosene (Other Than Kerosene Used in Aviation) Claimant certifies that the kerosene did not contain visible evidence of dye. I a b c D Exception. If any of the kerosene included in this claim did contain visible evidence of dye, attach an explanation and check here ~ (c) Gallons (d) Amount of credit l!e) CRN (b) Rate (a) Type of use Nontaxable use taxed at $.244 $ .243 346 Use on a farm for farming purposes 0 .2431 Use in certain intercity and local buses (see Caution above line 1) I I I I .171 I 0 0 347 d Exported .244 0 0 414 e Nontaxable use taxed at $.044 .0431 0 0 377 Nontaxable use taxed at $.219 .2181 0 For Paperwork Reduction Act Notice, see the separate instructions. 0 Form 369 4136 (2015) ERF F5.00.02 US4136P1 DUKE ENERGY PROGRESS, LLC 56-2155481 Item No 13(a)(8) Energy Progress, LLC Page 5 2 Kerosene Used in Aviation (see Caution above line 1) I(a) Type of use (b) Rate I (d) Amount of credit I (e) CRN (c) Gallons a Kerosene used in commercial aviation (other than foreign trade) taxed at $.244 $ .200 b Kerosene used in commercial aviation (other than foreign trade) taxed at $.219 0 I 417 .175 0 0 355 .243 0 0 346 d Nontaxable use (other than use by state or local government) taxed at $.219 .218 0 0 369 e LUST tax on aviation fuels used in foreign trade .001 o 0 433 c Nontaxable use (other than use by state or local government) taxed at $.244 6 Sales by Registered Ultimate Vendors of Undyed Diesel Fuel Registration No. I ~ Claimant certifies that it sold the diesel fuel at a tax- excluded price, repaid the amount of tax to the buyer, or has obtained the written consent of the buyer to make the claim. Claimant certifies that the diesel fuel did not contain visible evidence of dye. D Exception. If any of the diesel fuel included in this claim did contain visible evidence of dye, attach an explanation and check here ~ (b) Rate $ .243 a Use by a state or local government b Use in certain intercity and local buses 7 (c) Gallons O .17 O I (d) Amount of credit I (e) CRN 1$ I O O I I 360 350 Sales by Registered Ultimate Vendors of Undyed Kerosene (Other Than Kerosene For Use in Aviation) Registration No. Claimant certifies that it sold the kerosene at a tax- excluded price, repaid the amount of tax to the buyer, or has obtained the written consent of the buyer to make the claim. Claimant certifies that the kerosene did not contain visible evidence of dye. a Use by a state or local government (b) ~"~431 b Sales from a blocked pump .243 c Use in certain intercity and local buses 8 ~ }I~ 1 .17 Sales by Registered Ultimate Vendors of Kerosene For Use in Aviation 0 Registration No. 0 0 I ~46 347 ~ Claimant sold the kerosene for use in aviation at a tax- excluded price and has not collected the amount of tax from the buyer, repaid the amount of tax to the buyer, or has obtained the written consent of the buyer to make the claim. See the instructions for additional information to be submitted. I (a) Type of use I a Use in commercial aviation (other than foreign trade) I I (b) Rate (c) Gallons I (d) Amount of credit l(e) CRN I $.175 0 .200 0 0 c Nonexempt use in noncommercial aviation .025 0 0 418 d Other nontaxable uses taxed at $.244 .243 0 0 346 e Other nontaxable uses taxed at $.219 .218 0 0 369 .001 0 0 taxed at $.219 b Use in commercial aviation (other than foreign trade) taxed at $.244 LUST tax on aviation fuels used in foreign trade 1$ 0 Form F5.00.01 355 417 433 4136 (2015) US4136P2 DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) Page 3 56-2155481 9 ~ Registration No. Reserved (b) Rate (d) Amount of credit I (e) CRN (c) Gallons of alcohol a Reserved b Reserved 10 Biodiesel or Renewable Diesel Mixture Credit ~ Registration No. Biodiesel mixtures. Claimant produced a mixture by mixing biodiesel with diesel fuel. The biodiesel used to produce the mixture met ASTM 06751 and met EPA's registration requirements for fuels and fuel additives. The mixture was sold by the claimant to any person for use as a fuel or was used as a fuel by the claimant. Claimant has attached the Certificate for Biodiesel and, if applicable, the Statement of Biodiesel Reseller. Renewable diesel mixtures. Claimant produced a mixture by mixing renewable diesel with liquid fuel (other than renewable diesel). The renewable diesel used to produce the renewable diesel mixture was derived from biomass process, met EPS's registration requirements for fuels and fuel additives, and met ASTM 0975, 0396, or other equivalent standard approved by the IRS. The mixture was sold by the claimant to any person for use as a fuel or was used as a fuel by the claimant. Claimant has attached the Certificate for Biodiesel and, if applicable, the Statement of Biodiesel Reseller, both of which have been edited as discussed in the Instructions for Form 4136. See the instructions for line 10 for information about renewable diesel used in aviation. I I I I a Biodiesel (other than agri- biodiesel) mixtures b Agri- biodiesel mixtures c Renewable diesel mixtures 11 (c) Gallons of biodiesel or renewable diesel $1.00 $1.00 $1.00 I I I (d) Amount of credit 0 1$ 0 0 0 0 I I 0 I'' I I I CRN 388 390 307 Nontaxable Use of Alternative Fuel Caution. There is a reduced credit rate for use in certain intercity and local buses (type of use 5) (see instructions). (a) Type of use I I c Compressed natural gas (CNG) (GGE =126.67 cu. ft.) I d Liquefied hydrogen I a Liquefied petroleum gas (LPG) b "P Series" fuels (b) Rate (c) Gallons or gasoline gallon equivalents (GGE) (d) Amount of credit I(o) CRN $ .183 0 1$ 0 419 .183 0 0 420 .183 0 0 421 .183 0 I I I 0 422 e Fischer- Tropsch process liquid fuel from coal (including peat) 12 .243 0 0 423 f Liquid fuel derived from biomass .243 0 0 424 g Liquefied natural gas (LNG) .243 0 0 425 h Liquefied gas derived from biomass .183 0 0 435 Alternative Fuel Credit Registration No. I ~ (c)Gallo~s or gasoline gallon equivalents (GGE) (d) Amount of credit $ .50 0 0 426 .50 0 0 427 .50 0 0 428 d Liquefied hydrogen e Fischer- Tropsch process liquid fuel from coal (including peat) .50 0 0 429 .50 0 0 430 f Liquid fuel derived from biomass .50 0 0 431 g Liquefied natural gas (LNG) .50 0 0 432 h Liquefied gas derived from biomass .50 0 0 436 .50 0 0 a Liquefied petroleum gas (LPG) b "P Series" fuels c Compressed natural gas (CNG) (GGE =121 cu. ft.) i Compressed gas derived from biomass (GGE =121 cu. ft.) $ Form F5.00.01 437 4136 (2015) US4136P3 DUKE ENERGY PROGRESS, LLC 56-2155481 Energy Progress, LLC Item No 13(a)(8) Page 13 Registered Credit Card Issuers Registration No. (b) Rate a Diesel fuel sold for the exclusive use of a state or local government 14 ~ I (d) Amount of credit (c) Gallons $ .243 4 01$ 0 b Kerosene sold for the exclusive use of a state or local government .243 aI a c Kerosene for use in aviation sold for the exclusive use of a state or local government taxed at $.219 .218 0 0 l(e) CRN I I 360 346 369 Nontaxable Use of a Diesel-Water Fuel Emulsion Caution. There is a reduced credit rate for use in certain intercity and local buses (type of use 5) (see instructions). (b) Rate (a) Type of use (c) Gallons (d) Amount of credit l(e) CRN $ .197 a Nontaxable use ol$ o 309 b Exported 15 I I I I I I Registration No. (b) Rate $ .046 (c) Gallons a I I 306 ~ I q$ I(e) CRN I 310 (d) Amount of credit a Exported Dyed Fuels and Exported Gasoline Blendstocks a Exported dyed diesel fuel and exported gasoline blendstocks taxed at $.001 b Exported dyed kerosene 17 aI .198 Diesel-Water Fuel Emulsion Blending Blender credit 16 I (b) Rate (c) Gallons I (d) Amount of credit $ .001 .001 Total income tax credit claimed. Add lines 1 through 16, column (d). Enter here and on Form 1040, line 72; Form 1120, Schedule J, line 19b; Form 11208, line 23c; Form 1041, line 24g; or the proper line of other returns. ~ aI ~I. a l(e) CRN I I 415 416 22,549 Form F5.00.01 4136 (2015) US4136P4 DUKE ENERGY PROGRESS, LLC Docket No E-2, Sub XXXX NCUC Form E-1 Data Request Fcc;~:~e,3d8(fO Department of the Treasury Internal Revenue Service (99) Name(s) sh own on return Item No 13(a)(8) General Business Credit OM B No. 1545- 0895 2015 ~Information about Form 3800 and its separate instructions is at www.irs.gov/form3800. Attach men! ~You must attach all pages of Form 3800, pages 1, 2, and 3, to your tax return. Sequence No. 22 Identifying number 56-2155481 Duke Energy Progress, LLC Part I Current Year Credit for Credits Not Allowed Against Tentative Minimum Tax (TMT) (See instructions and complete Part(s) Ill before Parts I and II) General business credit from line 2 of all Parts Ill with box A checked Passive activity credits from line 2 of all Parts Ill with box B checked 2 .. . 1. 2 . 1. .... 111 0 Enter the applicable passive activity credits allowed for 2015 (see instructions)o o o o o o o o 3 4 Carryforward of general business credit to 2015. Enter the amount from line 2 of Part Ill with box C checked. See instructions for statement to attach 5 Carryback of general business credit from 2016. Enter the amount from line 2 of Part Ill with box D checked (see instructions) 6 Add lines 1, 3, 4, and 5 oo 1, 974 ,632 I 3 I 0 I 4 I 7,641,251 I I s 5 I I 0 9,615,883 Partll Allowable Credit Regular tax before credits: 7 o Individuals. Enter the sum of the amounts from Form 1040, lines 44 and 46, or the sum of the amounts from Form 1040NR, lines 42 and 44 o o o o o o o o o o o o o o Corporations. Enter the amount from Form 1120, Schedule J, Part I, line 2; or the 0 applicable line of your return o o o o o o o o o o o o o o o o o o o o o o o o o o o Estates and trusts. Enter the sum of the amounts from Form 1041, Schedule G, lines 1a and 1b; or the amount from the applicable line of your return. Alternative minimum tax: 8 o Individuals. Enter the amount from Form 6251, line 35 o o o o o o o o o Corporations. Enter the amount from Form 4626, line 14 o o o o o o o 0 8 o Estates and trusts. Enter the amount from Schedule I (Form 1041 ), line 56 0 Add lines 7 and 8 9 b Foreign tax credit o o o o o o o o o o o o o Certain allowable credits (see instructions). c Add lines 1Oa and 1Ob o o o o o o o o o o o 10a I1oa . 11ob I I 0 0 0 Subtract line 1Oc from line 9. If zero, skip lines 12 through 15 and enter - 0- on line 16 11 Net income tax. 13 Enter 25% (.25) of the excess, if any, of line 12 over $25,000 (see 14 instructions) o o o o o o o o o o o o o o o o o o o o o o o Tentative minimum tax: o Individuals. Enter the amount from Form 6251, line 33 O 0 .11 o Corporations. Enter the amount from Form 4626, line 12 . ~ o Estates and trusts. Enter the amount from Schedule I .) ~1~4~_ _ _ _ _ _ _ o _, 15 (Form 1041 ), line 54 o o o o o o o o o o o o o o o o Enter the greater of line 13 or line 14 o o o o o o o o o 16 Subtract line 15 from line 11. If zero or less, enter - 0- o 0 17 Enter the smaller of line 6 or line 16 0 0 C corporations: See the line 17 instructions if there has been an ownership change, acquisition, or reorganization. For Paperwork Reduction Act Notice, see separate instructions. ERF Form 3800 (2015) F5.00.01 US3800P1 DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) 56-2155481 Duke Energy Progress, LLC Page Form 3800 (2015) Pal''lll Allowable Credit 18 ~:::,~:,:o: :.::~::~ ~:~;::~:~,::,::)'~ no:o.''. :'." '.'''~. '.''' :'"~~ 19 Enter the greater of line 13 or line 18 o o o o o Note. 1.8 ."."."'". '.' .'~' ~~'. ~-lin+1.. - Qo.-o11 e-26_._ _ _ _ _ _o_ o 1 ...._19_;-l_ _ _ _ _ _ _ _o_ I Subtract line 19 from line 11. If zero or less, enter - 0- o o o o o o o o o o o o o o o o o o o o o o o o o o o 120 Subtract line 17 from line 20. If zero or less, enter - 0- o o o o o o o o o o o o o o o o o o o o o o o o o o o r-1-2-1-;-1--------0- 20 21 bo~ ~. ~.. ~ ~:e~k~~ 0?r 0 I oooo : : : : : : : : : : o : ...._22_+-l_ _ _ _ _ _ _ _o_ 22 Combine the amounts from line 3 of all Parts Ill with 23 Passive activity credit from line 3 of all Parts Ill with box B checked 24 Enter the applicable passive activity credit allowed for 2015 (see instructions). 25 Add lines 22 and 24 26 2 (Continued) 0 0 24 ............... ;---;---------0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ; 25 ---+--------- Empowerment zone and renewal community employment credit allowed. Enter the smaller of line 21 or line 25 o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o t-""26"'-T---------0- 27 Subtract line 13 from line 11. If zero or less, enter - 0- 28 Add lines 17 and 26 29 Subtract line 28 from line 27. If zero or less, enter - 0- 30 Enter the general business credit from line 5 of all Parts Ill with box A checked o 31 Reserved 32 Passive activity credits from line 5 of all Parts Ill with box B checked 33 Enter the applicable passive activity credits allowed for 2015 (see instructions) ooo 34 o o o o o o o o o o o o o o o o o o o o o o o o o o o t-""27'"-T---------0- o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o t-""28"'-T---------0ooooooooooooooooooooooooooo .1 32 56,216,044 I 0 oooooooo r--33~;---------0- Carryforward of business credit to 2015. Enter the amount from line 5 of Part Ill with box C checked and line 6 of Part Ill with box G checked. See instructions for statement to 35 t-""29~;---------0- attac~ o 558,728 34 ........ ;---;---------- Carryback of business credit from 2016. Enter the amount from line 5 of Part Ill with box D checked (see instructions) o o ooooooo 36 Add lines 30, 33, 34, and 35 37 Enter the smaller of line 29 or line 36 38 Credit allowed for the current year. Add lines 28 and 37. r--35~;---------0- o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o r--36"'-T------5-6_.7_7_4_,_7_72_ 56,774,772 Report the amount from line 38 (if smaller than the sum of Part I, line 6, and Part II, lines 25 and 36, see instructions) as indicated below or on the applicable line of your return: o Individuals. Form 1040, line 54, or Form 1040NR, line 51 o o Corporations. Form 1120, Schedule J, Part I, line 5c o Estates and trusts. Form 1041, Schedule G, line 2b oooo 38 66,390,655 Form 3800 F5.00.01 (2015) US3800P2 DUKE ENERGY PROGRESS, LLC Docket No E-2, Sub XXXX NCUC Form E-1 Data Request Fcc~rme88@1)l('2@~5)2016 Item No 13(a)(S!pa Name(s) sh own on return e 3 Identifying number 56-2155481 Duke Energy Progress, LLC Pf.il't Ill General Business Credits or Eligible Small Business Credits (see instructions) Comfje a separate Part Ill for each box checked below. (see instructions) ~ ~ E~~~! ~~~!~~~ ~ ~l! ~~;~~,~~:::::;::t;,fy ~ ~ ~~~~:~m'll ""';"'ffi C"~''~"'' Ccod;t If you are filing more than one Part Ill with box A or B checked, complete and attach first an additional Part Ill combining amounts from all Parts Ill with box A or B checked. Check here if this is the consolidated Part Ill ~n . . . . . . . . . . . . . . . . . . . . . . ..... (a) Description of credit (b) If claiming the credit from a pass- through entity, enter the EIN Note. On any line where the credit is from more than one source, a separate Part Ill is needed for each pass- through entity. (c) Enter the appropriate amount I 1a 0 Increasing research activities (Form 6765) o o o o o o o o o o 1c 1'974 ,632 d Low- income housing (Form 8586, Part I only) o o o o o o o o 1d 0 e Disabled access (Form 8826) (see instructions for limitation) o 1e 0 f Renewable electricity, refined coal, and Indian coal production (Form 8835) o 1f 0 g Indian employment (Form 8845) 1g 0 Orphan drug (Form 8820) o o o o o o o o o o o o o o o o o o o o o o o o o o 1h 0 New markets (Form 8874) o o o o o o o o o o o o o o o o o o o o o o o o o o Small employer pension plan startup costs (Form 8881) (see instructions for limitation) 1i 0 1a Investment (Form 3468, Part II only) (attach Form 3468) b Reserved c h k ....................... I 1b 0 Employer- provided child care facilities and services (Form 8882) (see 0 instructions for limitation) o o o o o o o o o o o o o o o o o Biodiesel and renewable diesel fuels (attach Form 8864). 11 0 m Low sulfur diesel fuel production (Form 8896) 1m 0 n Distilled spirits (Form 8906) 1n 0 o Nonconventional source fuel 1o 0 p Energy efficient home (Form 8908) 0 q Energy efficient appliance ooooo 1p 1q r Alternative motor vehicle (Form 8910) 1r 0 s Alternative fuel vehicle refueling property (Form 8911) 1s 0 u Reserved o o o o o o o o o o o o o o o o o o o o Mine rescue team training (Form 8923) o o o o o o 1t 1u 0 v Agricultural chemicals security (carryforward only) o 1v 0 w Employer differential wage payments (Form 8932) o 1w 0 x Carbon dioxide sequestration (Form 8933) ooooo 1x 0 oooo y Qualified plug- in electric drive motor vehicle (Form 8936) z Qualified plug- in electric vehicle (carryforward only) ooo aa New hire retention (carryforward only) o o o o o o o o o o bb General credits from an electing large partnership (Schedule K-1 (Form 1065- B)) zz Other 0 0 I 1aa I I 1bb I 1zz 2 Add lines 1a through 1zz and enter here and on the applicable line of Part I o I 3 4a Enter the amount from Form 8844 here and on the applicable line of Part II Investment (Form 3468, Part Ill) (attach Form 3468) ,__3_+-----------+---------o;--4_a--+---------+----5_6_,2_1_6_,_0_4_4_ b Work opportunity (Form 5884) o o o o o o ,__4_b--+---------+--------o- c d Biofuel producer (Form 6478) o o o o o o o o o o o Low- income housing (Form 8586, Part II) o o o o o 1--4_c--+---------+--------o,__4_d--+---------+--------o- e Renewable electricity, refined coal, and Indian coal production (Form 8835) o ;--4_e--+---------+--------o- f Employer social security and Medicare taxes paid on certain employee tips (Form 8846) , _ _ 4 _ f - - + - - - - - - - - - + - - - - - - - - o - g Qualified railroad track maintenance (Form 8900) o o o o Small employer health insurance premiums (Form 8941). h z 5 6 1'974 ,632 2 1--4~9--+---------+--------0,__4_h--+_ _ _ _ _ _ _ _ _.......__ _ _ _ _ _ _ o_ Reserved 4i Reserved 4j Other ooo Add lines 4a through 4z and enter here and on the applicable line of Part II Add lines 2, 3, and 5 and enter here and on the applicable line of Part II 4z 0 5 6 56,216,044 58, 190 ,676 Form 3800 (2015) F5.00.01 US3800P3 DUKE ENERGY PROGRESS, LLC Docket No E-2, Sub XXXX NCUC Form E-1 Data Request Fcc~rme88@1)l('2@~5)2016 Item No 13(a)(S!pa Name(s) sh own on return e 3 Identifying number 56-2155481 Duke Energy Progress, LLC Pf.il't Ill General Business Credits or Eligible Small Business Credits (see instructions) Comer a separate Part 111 for each box checked below. (see instructions) ~ ~ E~~~! ~~~!~~~ ~ ~l! ~~;~~,~~:::::;::t;,fy ~ ~ ~~~~:~m'll ""';"'ffi C"~''~"'' Ccod;t If you are filing more than one Part Ill with box A or B checked, complete and attach first an additional Part Ill combining amounts from all Parts Ill with box A or B checked. Check here if this is the consolidated Part Ill ~n . . . . . . . . . . . . . . . . . . . . . . ..... (a) Description of credit (b) If claiming the credit from a pass- through entity, enter the EIN Note. On any line where the credit is from more than one source, a separate Part Ill is needed for each pass- through entity. (c) Enter the appropriate amount I 1a 0 Increasing research activities (Form 6765) o o o o o o o o o o 1c 6,257,669 d Low- income housing (Form 8586, Part I only) o o o o o o o o 1d e Disabled access (Form 8826) (see instructions for limitation) o 1e 1'256 ,282 0 1a Investment (Form 3468, Part II only) (attach Form 3468) b Reserved c ....................... I 1b f Renewable electricity, refined coal, and Indian coal production (Form 8835) o 1f 0 g Indian employment (Form 8845) 0 h Orphan drug (Form 8820) o o o o o o o o o o o o o o o o o o o o o o o o o o 1g 1h 1i 0 1j 0 New markets (Form 8874) o o o o o o o o o o o o o o o o o o o o o o o o o o Small employer pension plan startup costs (Form 8881) (see instructions for limitation) k 0 Employer- provided child care facilities and services (Form 8882) (see instructions for limitation) o o o o o o o o o o o o o o o o o Biodiesel and renewable diesel fuels (attach Form 8864). I 1k I 0 11 0 m Low sulfur diesel fuel production (Form 8896) 1m 0 n Distilled spirits (Form 8906) 1n 0 o Nonconventional source fuel 1o 0 p Energy efficient home (Form 8908) 1~ 0 q Energy efficient appliance ooooo r Alternative motor vehicle (Form 8910) 1g 1r 127,300 s Alternative fuel vehicle refueling property (Form 8911) 1s 0 u Reserved o o o o o o o o o o o o o o o o o o o o Mine rescue team training (Form 8923) o o o o o o 1t 1u 0 v Agricultural chemicals security (carryforward only) o 1v 0 w Employer differential wage payments (Form 8932) o 1w 0 x Carbon dioxide sequestration (Form 8933) ooooo 1x 0 y z Qualified plug- in electric drive motor vehicle (Form 8936) 1y 0 oooo Qualified plug- in electric vehicle (carryforward only) ooo aa New hire retention (carryforward only) o o o o o o o o o o bb General credits from an electing large partnership (Schedule K-1 (Form 1065- B)) zz Other 2 Add lines 1a through 1zz and enter here and on the applicable line of Part I o 0 I 1z I I 1aa I I 1bb I I 1zz I I2 I 0 0 0 0 7,641,251 3 Enter the amount from Form 8844 here and on the applicable line of Part II 3 0 4a Investment (Form 3468, Part Ill) (attach Form 3468) 4a 558,728 b Work opportunity (Form 5884) o o o o o o 4b 0 c Biofuel producer (Form 6478) o o o o o o o o o o o 4c 0 d Low- income housing (Form 8586, Part II) ooooo 4d 0 e Renewable electricity, refined coal, and Indian coal production (Form 8835) o 4e 0 f Employer social security and Medicare taxes paid on certain employee tips (Form 8846) 4f 0 g Qualified railroad track maintenance (Form 8900) oooo 4g 0 h Small employer health insurance premiums (Form 8941). 4h 0 Reserved 4i Reserved 4j Other ooo Add lines 4a through 4z and enter here and on the applicable line of Part II Add lines 2, 3, and 5 and enter here and on the applicable line of Part II 4z 0 5 558,728 z 5 6 8, 199 ,979 6 Form F5.00.01 3800 (2015) US3800P3 DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) Information on Certain Persons Owning the Corporation's Voting Stock SCHEDULE G (Form 1120) (Rev. December 2011) Department of the Treasury Internal Revenue Service OM B No. 1545- 0123 ~ Attach to Form 1120. ~ See instructions. Employer identification number (EIN) Name 56-0165465 Duke Energy Progress, Inc. ~ Certain Entities Owning the Corporation's Voting Stock. (Form 1120, Schedule K, Question 4a). Complete columns (i) through (v) below for any foreign or domestic corporation, partnership (including any entity treated as a partnership), trust, or tax-exempt organization that owns directly 20% or more, or owns, directly or indirectly, 50% or more of the total voting power of all classes of the corporation's stock entitled to vote (see instructions). (ii) Employer Identification Number (if any) (i) Name of Entity 20-2777218 Duke Energy Corporation ~ (iv) Country of Organization (v) Percentage Owned in Voting Stock us 100.000 C Corp Certain Individuals and Estates Owning the Corporation's Voting Stock. (Form 1120, Schedule K, Question 4b). Complete columns (i) through (iv) below for any individual or estate that owns directly 20% or more, or owns, directly or indirectly, 50% or more of the total voting power of all classes of the corporation's stock entitled to vote (see instructions). (i) Name of Individual or Estate For Paperwork Reduction Act Notice, see the Instructions for Form 1120. ERF (iii) Type of Entity (ii) Identifying Number (if any) (iii) Country of Citizenship (see instructions) (iv) Percentage Owned in Voting Stock Schedule G (Form 1120) (Rev. 12-2011) F5.00.01 USSCHGP1 DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) Page 2 Employer identification number Schedule M- 3 (Form 1120) 2015 Name of corporation (common parent, if consolidated return) 56-2155481 Duke Energy Progress, LLC Check applicable box(es): (1) Check if a sub-consolidated: D (6) Consolidated group 1120group (2) D (7) Parent corp (3) D Consolidated eliminations (4) D Subsidiary corp(5) D Mixed 1120/L/PC group 1120 eliminations Name of subsidiary (if consolidated return) Employer identification number Reconciliation of Net Income (Loss) per Income Statement of lncludible Corporations With Taxable Income per Return (see instructions) Income (Loss) Items (Attach statements for lines 1 through 12) Income (loss) from equity method foreign corporations (a) (b) (c) (d) Income (Loss) per Temporary Permanent Income (Loss) per Income Statement Difference Difference Tax Return 0 01 0 01 0 0 3 Subpart F, QEF, and similar income inclusions ol ol 0 4 Section 78 gross- upo o o o o o o o o o o o o o 5 Gross foreign distributions previously taxed 6 Income (loss) from equity method U.S. corporations. 0 0 0 -10,669 7 U.S. dividends not eliminated in tax consolidation 174,819 8 Minority interest for includible corporations 2 Gross foreign dividends not previously taxed o 0 0 ol ol -1 ,304,3951 9 Income (loss) from U.S. partnerships ooooo 1 ,547 ,550 10 Income (loss) from foreign partnerships oooo 0 11 Income (loss) from other pass- through entities -102 ,399 12 Items relating to reportable transactions 13 Interest income (see instructions) 14 Total accrual to cash adjustment 0 15 Hedging transactions o o o o o o 16 Mark-to- market income (loss) o -11,847,351 17 Cost of goods sold (see instructions) Sale versus lease (for sellers and/or lessors) 18 ol ol ol 0 0 0 0 0 ol ol 0 243' 155 2,781,131 0 0 1 ,860 ,041 0 ol -14,694,878 0 0 304' 152 '747 0 0 0 2,274,594,342 ) -2,847,5271 0 2,578, 747 ,089) 174,819 0 ol 2,883,5301 1 ,860 ,041 0 10.66~ I ~I 0 0 10,850,4681 0 10,850,468 20 21 Unearned/deferred revenue o o o o o o o o o Income recognition from long- term contracts o 0 0 01 0 0 0 0 0 22 Original issue discount and other imputed interest 0 0 0 0 0 376,018 19 Section 481 (a) adjustments o o o o o o o o o 0 23a Income statement gain/loss on sale, exchange, abandonment, worthlessness, or other disposition of assets other than inventory and pass- through entities -375,8371 375,837 b Gross capital gains from Schedule D, excluding 376,018 amounts from pass-through entities o o o o o o o o o ,I ,I c Gross capital losses from Schedule D, excluding amounts from pass- through entities, abandonment -1 losses, and worthless stock losses o o o o o o ,342,7761 d Net gain/loss reported on Form 4797, line 17, excluding amounts from pass-through entities, abandonment losses, and worthless stock losses o -23,389,6551 e Abandonment losses o o o o o o o o o o o o o o o -1 ,678,6751 f Worthless stock losses (attach statement) ooooo g 0th er gain/loss on disposition of assets other th an inventory o 24 Capital loss limitation and carryforward used oooo 25 26 27 28 ol -1,342'776 -23,389,655 -1 ,678,675 0 0 0 ~I ~I 0 I I I I 0 5,284,268,155 STMT21 -2,090,8801 -54,418,0731 5 ' 340 ' 777 ' 108 2,754,027,847 54. 407 . 404 285' 233 '0181 Total income (loss) items. Combine lines 1 through 25 r - - - - - - - - - - + - - - - - - - - t - - - - - - - - - - +2,984,853,461 --------2,021 ,884,375 -1 ,222,836,9121 -2,955,991 ,547 288 ,729 ,7 40 Total expense/deduction items (from Part Ill, line 38) -165,659,665 -165,659,665 Other items with no differences STATEMENT 22 0th er income (loss) items with differences (attach statement) o 29a Mixed groups, see instructions. All others, combine 30 lines 26 through 28 o o o o o o o o o o o o o b PC insurance subgroup reconciliation totals ooooo 566,483,807 0 0 c Life insurance subgroup reconciliation totals o o o o O O O 566, 483, 807 -937, 603, 8941 234, 322, 336 Reconciliation totals. Combine lines 29a through 29c -937,603,8941 234' 322 '3361 0 I -136,797,751 0 O -136, 797, 751 Note. Line 30, column (a), must equal Part I, line 11, and column (d) must equal Form 1120, page 1, line 28. F5.00.01 US20M3P2 Schedule M-3 (Form 1120) 2015 DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) Schedule M- 3 (Form 1120) 2015 Name of corporation (common parent, if consolidated return) Page 56-2155481 Duke Energy Progress, LLC (1) Check applicable box(es): Ch eek if a sub- consolidated: D (6) Consolidated group D 1120 group D D (2) (7) Parent corp (3) D Consolidated eliminations (4) Osubsidiary corp (5) D Mixed 1120/L/PC group 1120 eliminations Name of subsidiary (if consolidated return) Partin 3 Employer identification number Employer identification number Reconciliation of Net Income (Loss) per Income Statement of lncludible Corporations With Taxable Income per Return- Expense/Deduction Items (see instructions) (a) (b) (c) (d) Expense per Temporary Permanent Deduction per Income Statement Difference Difference Tax Return Expense/Deduction Items 1 U.S. current income tax expense o -56,364,849 0 56,364,849 2 U.S. deferred income tax expense 326' 427 ' 138 0 -326,427,138 3 State and local current income tax expense oo 4 State and local deferred income tax expense oo .~l~~~--3_,8_3_8_,9_7_7-+-~~-4_,_54_2_,_55_1~1~~~~~~0~1~~~-7-0_3_,5_7_4_ .pl~~~2_7_.2_0_7_,7_2_1-+-~~-2_7_._20_7_._72_1+l~~~~~~o+I~~~~~~= 5 Foreign current income tax expense (other than foreign withholding taxes) . 6 Foreign deferred income tax expense 7 Foreign withholding taxes oooo 8 Interest expense (see instructions) - - - + - - o- - - - + - o 1---1 I _ ______,_,o= = o I .~I~~~~-o-+-~~~~o~I~~~~o~l~~~~o 0 0 0 :~I~~-2_2_9_,7_6_8_,_o7_9--+-~~~---98_7_,_61_5~1~~~-2_,_3_14_,_2_27--+-1~~2_2_6_,4_6_6_,2_3_7_ oooooo 0 0 0 0 10 Other equity- based compensation 0 0 0 0 9 Stock option expense 11 Meals and entertainment :pl~~~-8_.7_9_5_,5_5_8-+-~~~~~-o+l~~---2_,5_1_2_,6_4_3+1~~~6-,2-8_2_,9_1_5_ 12 Fines and penalties oI 90 . 333 0 13 Judgments, damages, awards, and similar costs o 14 Parachute payment~ o o o o o o o o o o o o 15 Compensation with section 162(m) limitation 16 Pension and profit- sharing oo 17 Other post- retirement benefits 18 Deferred compensation 19 Charitable contribution of cash and tangible property 20 Charitable contribution of intangible property o 21 Charitable contribution limitation/carryforward 22 Domestic production activities deduction o o o o 0 0 0 0 0 0 0 0 0 .~l~~~~-5_o9~,5_4_4--+-~~~5_,_o4_o_,_o_oo--+-l~~~~~~o--+-l~~~5-,5-4_9_,_54_4~ 0 0 0 0 :l~~~~~~r-~~~~-oo+l~~~~~oo--+-1~~~~~oo_ 1 I I ;-1---------+--------t-i--------;1-------~ banking fees a~~uisiii~n .o; r~~r~a~i~aiio.n ?le~~I ~n.d. accounting fees - 90 . 333 I 0 :~1~~~2_4_,0_5_6_,5_6_7-+-~~--2_,_85_5_,_94_5~1~~~~~~0~1~~-2_1_,2_0_0_,6_2_2_ .pl~~---4_0_,6_6_0_,6_5_6-+-~~5_5_,_40_9_,_77_4+1~~~~~~0+1~~-1-4_,7_4_9_,1_1_8_ .~l~~~-3_,4_7_4_,5_6_6-+-~~-5_,_26_2_,_35_2~1~~~~~~0~1~~~8-,7_3_6_,9_1_8_ 23 Current year acquisition or reorganization investment. 24 Current year oI 0 o o o o o o o o o o o o o o o o o o o o o o 0 O O O O 25 Current year acquisition/reorganization other costs 0 0 0 0 26 Amortization/impairment of goodwill o o o o o o 0 0 0 0 27 Amortization of acquisition, reorganization, and start- up costs : - - - + - - o- - - - + - o -2.213,278 11.242,4251 1---1 I 28 Other amortization or impairment write- offs I _ ______,_,o ol I o 9,029,147 _ _ ==============:1======:i======= 29 Reserved ::1 30 Depletion ooooo 0 0 0 0 :rl~~-5_8_4_,4_7_3_,_44_4--+~~7_7_2_,_68_6_,_81_2~1~~---14_,_6_95_,_9_94--+l~-1,_3_4_2_,4_6_4_,2_6_2_ 31 Depreciation ooo .~1~~~1_2_,5_1_7_,0_9_2-+-~~-2_,_66_7_,_79_1~1~~~~~~0~1~~-1-5_,1_8_4_,8_8_3_ 32 Bad debt expense 33 Corporate owned life insurance premiums I 892 ,578 oI -892 ,5781 o 34 Purchase versus lease (for purchasers and/or lessees) ................. ... 0 3 5 Research and development costs 0 0 0 0 3 6 Section 118 exclusion (attach statement) 0 0 0 0 3 7 Other expense/deduction items with differences (attach statement) STATEMENT 23 906 ,749 '515 397,036,488 1'838 ,324 1 ,305,624,327 3 8 Total expense/deduction items. Combine lines 1 through 37. Enter here and on Part II, line 27, reporting positive amounts as negative and negative amounts as positive 2,021 ,884,375 1 '222 '836 '912 -288,729,740 2,955,991 ,547 .................. . . . . . . . . ..... F5.00.01 US20M3P3 Schedule M-3 (Form 1120) 2015 DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) Depreciation and Amortization 4562 Form (Including Information on Listed Property) Department of the Treasury Internal Revenue Service (99) 2015 ~ Attach to your tax return. ~Information about Form 4562 and its separate instructions is at www.irs.gov/form4562. Name(s) sh own on return Business or activity to which th is form relates Duke Energy Progress, LLC Patti OM B No. 1545- 0172 Identifying number 56-2155481 Electric Utility Election To Expense Certain Property Under Section 179 Note: If you have any listed property, complete Part V before you complete Part I. Maximum amount (see instructions) o o o o o o o o o o o o o o o o o o o o o o o o o o 2 Total cost of section 179 property placed in service (see instructions) o o o o o o o o o 500,000 3 Threshold cost of section 179 property before reduction in limitation (see instructions). 2,000,000 0 0 4 Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter - 0-o o o o o o o 5 Dollar limitation for tax year. Subtract line 4 from line 1. If zero or less, enter - 0-. If married filing 500,000 separately, see instructions o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o 6 bl (a) Description of propertv (cl Cost (business use onlvl 7 Listed property. Enter the amount from line 29o o o o o o o o o o o o o o o o o o o o 8 Total elected cost of section 179 property. Add amounts in column (c), lines 6 and ~ Elected cost 0 0 0 0 I1 0 . . . . ......... Is Tentative deduction. Enter the smaller of line 5 or line 8 9 0 I9I I10 I I11 I o 11 Carryover of disallowed deduction from line 13 of your 2014? F~;m. 4s62: : : : : : : : : : : : : : : : : : : : : Business income limitation. Enter the smaller of business income (not less than zero) or line 5 (see instructions) 12 13 Section 179 expense deduction. Add lines 9 and 10, but do not enter more than line 11 ooo .,...-_._._._._._._._._.~I1_2-+ll~~~~~~~~~o~ Carryover of disallowed deduction to 2016. Add lines 9 and 10, less line 12 ~ 0 10 O O 1131 Note: Do not use Part II or Part Ill below for listed property. Instead, use Part V. Special Depreciation Allowance and Other Depreciation (Do not include listed property.} (See instructions.) 14 Special depreciation allowance for qualified property (other than listed property) placed in service 730,249,331 during the tax year (see instructions) ooooo 0 15 Property subject to section 168(f)(1) election ooooooooooooooooooooooooo 16 Other depreciation (including ACRS) o o o o o o o o o o o o o o o o o o o o o o o o o o o o o Part Ill MACRS Depreciation (Do not include listed property.) (See instructions.) 14,491 ,702 Section A 1171 17 MACRS deductions for assets placed in service in tax years beginning before 2015 o o o o o o 18 If you are electing to group any assets placed in service during the tax year into one or more general asset accounts, check here o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o ~ D Section B - Assets Placed in Service During 2015 Tax Year Using the General Depreciation System (c) Bas is for depreciation (b) Month and (a) Classification of property (d) Recovery (e) Convention (f) Method year placed in (business/investment use 19a 3- year property b 5- year property c 7-year property I I I I I I d 10- year property e 15- year property f 20- year property g 25- year property Depreciation deduction I 0 3.0 214,508,541 5.0 42,901 ,708 50,104,513 7.0 1'663 ,428 718,699,111 10.0 7' 157 ,838 125,587 15.0 35,487,753 342,695,955 20.0 h Residential rental property 0 25 yrs. 0 27.5 yrs. 0 52,889,203 Nonresidential real property (g) I period only -see instructions) service 498,521 ,205 0 0 12,851 ,098 S/L 0 MM S/L 0 27.5 yrs. MM S/L 0 39 yrs. 0.0 MM S/L 678,040 MM S/L 0 Section C - Assets Placed in Service During 2015 Tax Year Using the Alternative Depreciation System 20a Class life 0 28.0 S/L 0 b 12-year 0 12 yrs. S/L 0 c 40-year 0 40 yrs. S/L 0 Partl\l Summary MM (See instructions.) 21 Listed property. Enter amount from line 28. 22 Total. Add amounts from line 12, lines 14 th;o~g.h 1l, 0 iin?e~ 1?9?a~d. 121 2o in?c~l~~n. (;): ~nd iin~ 21". E~t~r. 0 here and on the appropriate lines of your return. Partnerships and S corporations - see instructions o o 23 For assets shown above and placed in service during the current year, enter the portion of the basis attributable to section 263A costs o o o o o o o o o o ERF For Paperwork Reduction Act Notice, see separate instructions. 0 ,_I_,_I__________ .. 22 1 , 342, 464, 262 1.~1------- 1~'-=~~~~~~~~~= I o oooo 23 2, 154, 717, 295 F5.00.01 US4562P1 Form 4562 (2015) DUKE ENERGY PROGRESS, LLC 56-2155481 LLC Item No 13(a)(8) Form 4562 (2015) Page 2 Part\/ Listed Property (Include automobiles, certain other vehicles, certain aircraft, certain computers, and property used for entertainment, recreation, or amusement.) Note: For any vehicle for which you are using the standard mileage rate or deducting lease expense, complete only 24a, 24b, columns (a) through (c) of Section A, all of Section B, and Section C if applicable. Section A - Depreciation and Other Information (Caution: See the instructions for limits for passenger automobiles.) 24a Do you have evidence to support the business/investment use claimed? (a) (b) (c) (d) Type of property (list vehicles first) Date placed in service Business/ investment use percentage Cost or other basis r -I Yes r -I No I Bas is for depreciation (business/ investment use only) -I No If "Yes," is the evidence written? r -Ives r (i) (h) (g) 24b (f) (e) Recovery period Method/ Convention Elected section 179 cost Depreciation deduction 25 Special depreciation allowance for qualified listed property placed in service during the tax year and used more than 50% in a qualified business use (see instructions) 26 Property used more than 50% in a qualified business use: 0 .O()JA, I I I ol ol ol I 0 .O()JA, I 0 .O()JA, 27 Property used 50% or less in a qualified business use: I 0 .O()JA, I I ol ol ol 0.0 0 0 r-o.DI S/L- 0 .O()JA, 0 ol 0 .O()JA, 0 01 28 Add amounts in column (h), lines 25 through 27. Enter here and on line 21, page 1. 0 ol ol ol o.o I o.o I 0 0 I I S/L0.0 I S/L- 0 0 0.0 0 . . ....... I 28 0 29 Add amounts in column (i), line 26. Enter here and on line 7, page 1, o o o o o o o o o o o o o o o o o o o o o o o o o I 29 I 0 Section B - Information on Use of Vehicles Complete this section for vehicles used by a sole proprietor, partner, or other "more than 5% owner," or related person. If you provided vehicles to your employees, first answer the questions in Section C to see if you meet an exception to completing this section for those vehicles. 30 Total business/investment miles driven during (a) (b) (c) (d) (e) (f) Vehicle 1 Vehicle 2 Vehicle 3 Vehicle 4 Vehicle 5 Vehicle 6 the year (do not include commuting miles) 31 Total commuting miles driven during the year 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 32 Total other personal (noncommuting) ............ miles driven 33 Total miles driven during the year. 0 Add lines 30 through 32 o o o o o 34 Was the vehicle available for personal Yes No 0 Yes No 0 Yes No 0 Yes No 0 Yes 0 No Yes No use during off- duty hours? o o o o o o o 35 Was the vehicle used primarily by a more than 5% owner or related person? o 36 Is another vehicle available for personal use? Section C - Question for Employers Who Provide Vehicles for Use by Their Employees Answer these questions to determine if you meet an exception to completing Section B for vehicles used by employees who are not more than 5% owners or related persons (see instructions). No 37 Do you maintain a written policy statement that prohibits all personal use of vehicles, including commuting, by your employees? o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o 38 Do you maintain a written policy statement that prohibits personal use of vehicles, except commuting, by your employees? See the instructions for vehicles used by corporate officers, directors, or 1% or more owners o o o o o o o 39 Do you treat all use of vehicles by employees as personal use~ o o o o o o o o o o o o o o o o o o o o o o 40 Do you provide more than five vehicles to your employees, obtain information from your employees about the use of the vehicles, and retain the information received? o o o o o o o o o o o o o o o o o o o o o o o o 41 Do you meet the requirements concerning qualified automobile demonstration use? (See instructions.) Note: If your answer to 37, 38, 39, 40, or 41 is "Yes," do not complete Section B for the covered vehicles. Pal"t\11 Amortization (a) (b) (c) (d) (e) (f) Description of costs Date amortization begins Amortizable amount Code section Amortization period or percentage Amortization for th is year I 42 Amortization of costs that begins during your 2015 tax year (see instructions): 0 Pollution Control 2015 10, 531 , 100 0 I 131 ,602 43 Amortization of costs that began before your 2015 tax yearo o o o o o o 43 44 Total. Add amounts in column (f). See the instructions for where to report 44 8,897,545 9,029,147 Form F5.00.02 4562 (2015) US4562P2 DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) Form Sales of Business Property 4797 OM B No. 1545- 0184 (Also Involuntary Conversions and Recapture Amounts Under Sections 179 and 280F(b)(2)) Department of the Treasurx Internal Revenue Service (99) 2015 ~Attach to your tax return. Attach men! Sequence No. ~ Information about Form 4797 and its separate instructions is at www.irs.gov/form4797. Name(s) sh own on return Identifying number Duke Energy Progress, LLC 56-2155481 27 III Enter the gross proceeds from sales or exchanges reported to you for 2015 on Form(s) 1099- B or 1099- S (or substitute statement) that you are including on line 2, 10, or 20 (see instructions). o o o o o o o o o o o o o o o o o o o o o o o o o 1 O Part I Sales or Exchanges of Property Used in a Trade or Business and Involuntary Conversions From Other Than Casualty or Theft- Most Property Held More Than 1 Year (see (a) Description 2 (b) Date acquired (mo., day, yr.) of property (c) Date sold (mo., day, yr.) (d) Gross sales price From Schedule K-1 instructions) (f) Cost or other (e) Depreciation allowed or allowable since acquisition (g) Gain or (loss) basis, plus Subtract (f) from the improvements and sum of (d) and (e) expense of sale 01 01 01 0 0 0 0 0 0 0 0 0 0 0 0 238' 152 0 3 4 Gain, if any, from Form 4684, line 39 o o o o o o o o o o o o o o o o o o Section 1231 gain from installment sales from Form 6252, line 26 or 37. 5 Section 1231 gain or (loss) from like- kind exchanges from Form 8824 o 6 Gain, if any, from line 32, from other than casualty or theft .ooooooo 7 Combine lines 2 through 6. Enter the gain or (loss) here and on the appropriate line as follows: o 0 I5 I I6 I I1 I 0 0 238' 152 Partnerships (except electing large partnerships) and S corporations. Report the gain or (loss) following the instructions for Form 1065, Schedule K, line 10, or Form 1120S, Schedule K, line 9. Skip lines 8, 9, 11, and 12 below. Individuals, partners, S corporation shareholders, and all others. If line 7 is zero or a loss, enter the amount from line 7 on line 11 below and skip lines 8 and 9. If line 7 is a gain and you did not have any prior year section 1231 losses, or they were recaptured in an earlier year, enter the gain from line 7 as a long- term capital gain on the Schedule D filed with your return and skip lines 8, 9, 11, and 12 below. 8 9 Nonrecaptured net section 1231 losses from prior years (see instructions) o o o o o o o o o o o o o o o o o o o Subtract line 8 from line 7. If zero or less, enter - 0-. If line 9 is zero, enter the gain from line 7 on line 12 below. If line 9 is more than zero, enter the amount from line 8 on line 12 below and enter the gain from line 9 as a long-term capital gain on the Schedule D filed with your return (see instructions). o o o o o o o o o o o o o o o o o o Partll Ordinary Gains and Losses 10 (see instructions) Ordinary gains and losses not included on lines 11 through 16 (include property held 1 year or less): Various 11 I VARIOUS I VARIOUS I 0 Io I 0 s 0 0 ol 0 0 0 0 0 0 0 0 0 0 0 0 -25,068,330 0 ) 11 Loss, if any, from line 7 o o o o o o o o o o o o o o o o o o o Gain, if any, from line 7 or amount from line 8, if applicable. 12 0 13 360,049 14 Gain, if any, from line 31 o o o o o o o o o o o o o o o o o o Net gain or (loss) from Form 4684, lines 31 and 38a oooo 14 0 15 Ordinary gain from installment sales from Form 6252, line 25 or 36. 15 0 16 Ordinary gain or (loss) from like- kind exchanges from Form 8824 o 16 0 17 Combine lines 10 through 16 o o o o o o o o o o o o o o o o o o o o For all except individual returns, enter the amount from line 17 on the appropriate line of your return and skip lines a I 11 -24 ,708 '281 12 13 18 and b below. For individual returns, complete lines a and b below: a If the loss on line 11 includes a loss from Form 4684, line 35, column (b )(ii), enter that part of the loss here. Enter the part of the loss from income- producing property on Schedule A (Form 1040), line 28, and the part of the loss from property used as an employee on Schedule A (Form 1040), line 23. Identify as from "Form 4797, line 18a." See instructions b Redetermine the Q~in. 0?r (10~~) ~~Ii~~ 1?7?e~ciu~li~g. the l~s~, it ~~Y." 0?n .li~e 1Sa.. .E~t~r h~r~ ~nd ~~ Fo~~ 0 0 11!~ 0 1"040, 1ine 14 I ,_h_s_b-+1-------- For Paperwork Reduction Act Notice, see separate instructions. ERF Form F5.00.01 4797 (2015) US4797P1 DUKE ENERGY PROGRESS, LLC 56-0165465 Inc. Item No 13(a)(8) Form 4797 (2015) Part Ill 2 Page Gain From Disposition of Property Under Sections 1245, 1250, 1252, 1254, and 1255 (see instructions) 19 A (a) Description of section 1245, 1250, 1252, 1254, or 1255 property: (b) Date acquired (mo., day, yr.) (c) Date sold (mo., day, yr.) Property C Property D From Schedule K-1 B c D Property A Property B These columns relate to the properties on lines 19A through 190. .. 0 - - - + - - - - - -0_20_+-------o-+--------o-+----0 0 _2_1---+-------o-+--------o-+--------+------- 20 Gross sales price (Note: See line 1 before completing.). 21 Cost or other basis plus expense of sale. o o o o 22 23 Depreciation (or depletion) allowed or allowable. Adjusted basis. Subtract line 22 from line 21. I 23 24 Total ain. Subtract line 23 from line 20 o o o >-1-24-+-------o-+--------o-+--------+------0 0 ,_I ,_I 0 - - - + - - - - - -0_22_+-------o-+--------o-+----0 0 O O ,_I o o o o o o o 25 If section 1245 property: 0 0 0 0 I25b I ol ol 0 0 a Additional depreciation after 1975 (see instructions). 26a 0 0 0 0 b Applicable percentage multiplied by the smaller of line 24 or line 26a (see instructions) o o o o o o o o o o o o o o o o 26b 0 0 0 0 c Subtract line 26a from line 24. If residential rental property or line 24 is not more than line 26a, skip lines 26d and 26e 26c 0 0 0 0 26d 0 0 0 0 26e 0 0 0 0 Section 291 amount (corporations only) o 26f 360,049 0 0 0 g Add lines 26b, 26e, and 26f o o o o o o o 26g 0 0 0 0 25a a Depreciation allowed or allowable from line 22. b Enter the smaller of line 24 or 25a 26 If section 1250 property: If straight line depreciation was used, enter - 0- on line 26g, except for a corporation subject to section 291 d Additional depreciation after 1969 and before 1976 o e Enter the smaller of line 26c or 26d f 27 If section 1252 property: Skip this section if you did not dispose of farmland or if this form is being completed for a partnership (other than an electing large partnership). a Soil, water, and land clearing expenses o o o o o o o o o o b Line 27a multiplied by applicable percentage (see instructions) c Enter the smaller of line 24 or 27bo o o o o o 27a 0 0 0 0 I 21b I I21c I 01 01 0 0 ol ol 0 0 28a 0 0 0 I 2sb I 01 01 o 28 If section 1254 property: a Intangible drilling and development costs, expenditures for development of mines and other natural deposits, mining exploration costs, and depletion (see ..... instructions) o o o o o o o o o o o o o o o o o o o o b Enter the smaller of line 24 or 28a o o o o o o o o o o o o o 0 I 0 29 If section 1255 property: a Applicable percentage of payments excluded from ..... income under section 126 (see instructions) oooo b Enter the smaller of line 24 or 29a (see instructions). o o o o Summary of Part Ill Gains. 29a 0 I 29b I O 0 I O 0 I 32 0 I31 I 360,049 Complete property columns A through D through line 29b before going to line 30. ~I 30 Total gains for all properties. Add property columns A through D, line 24 o o o o o o o o o o o o o o o o o o o o o o 31 0 I o Add property columns A through D, lines 25b, 26g, 27c, 28b, and 29b. Enter here and on line 13 o o o o o o o o o o 0 Subtract line 31 from line 30. Enter the portion from casualty or theft on Form 4684, line 33. Enter the portion from 0 other than casualty or theft on Form 4797, line 6o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o Part IV Recapture Amounts Under Sections 179 and 280F(b)(2) When Business Use Drops to 50% or Less (see instructions) (a) Section 179 33 Section 179 expense deduction or depreciation allowable in prior years 133 34 35 Recomputed depreciation (see instructions) o o o o o o o o o o o o o o o Recapture amount Subtract line 34 from line 33. See the instructions for where to report o 134 135 I I I F5.00.01 (b) Section 280F(b)(2) ol 0 ol 0 0 ol US4797P2 Form 4797 (2015) DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) Form 6765 Department of the Treasury Internal Revenue Service Name(s) sh own on return OM B No. 1545- 0619 Credit for Increasing Research Activities 2015 ~ Attach to your tax return. ~Information about Form 6765 and its instructions is at www.irs.gov/form6765. Attach men! Sequence No. 81 Identifying number 56-2155481 Duke Energy Progress, LLC Section A-Regular Credit. Skip this section and go to Section B if you are electing or previously elected (and are not revoking) the alternative simplified credit. 0 Certain amounts paid or incurred to energy consortia (see instructions) o 2 Basic research payments to qualified organizations (see instructions) 0 3 Qualified organization base period amount o o o o o o o o o o o o o Subtract line 3 from line 2. If zero or less, enter - 0- o o o o o o o o o 0 4 5 Wages for qualified services (do not include wages used in figuring 0 0 the work opportunity credit) o o o o o o o o o o o o o 6 7 Cost of supplies o o o o o o o o o o o o o o o o o o o o o o o o o o o Rental or lease costs of computers (see instructions) o o o o o o o o 8 Enter the applicable percentage of contract research expenses (see Add lines 1, 4, and 15 o o o o o o o o o 17 Are you electing the reduced credit under section 280C? 0 7 0 1--8~+---------0----1 instructions). o o o o o o o o o o o o o o o o o o o o o o o o o o o o Total qualified research expenses. Add lines 5 through 8 o o o o o o 9 10 11 12 13 14 15 16 6 ,__9_-+-________ o _ _, Enter fixed- base percentage, but not more than 16% (0.16) (see instructions) 1--1_0--+______o_._0_0_0_0_%--1 Enter average annual gross receipts (see instructions). ,__1_1--+_ _ _ _ _ _ _ _ o _ _, Multiply line 11 by the percentage on line 10. o o o o 1--1_2_ _ _ _ _ _ _ _ _ 0_--1 Subtract line 12 from line 9. If zero or less, enter - 0- ,__1_3--+_ _ _ _ _ _ _ _ o _ _, Multiply line 9 by 50% (0.50). o o o o o Enter the smaller of line 13 or line 14 ~14_~_ _ _ _ _ _ _ 0_--1 0 15 0 ~ Yes D D No If "Yes," multiply line 16 by 13% (0.13). If "No," multiply line 16 by 20% (0.20) and see the instructions for the statement that must be attached. Members of controlled groups or businesses under 0 common control: see instructions for the statement that must be attached o o o o o o o o Section B-Alternative Simplified Credit. i Skip this section if you are completing Section A. ;~ ~~~i~~~:{~~f~~~;~~~~~~~:~(~~i~t~:~~:~;:::~:::;~:~'''"'u':'l,_~;~ -.+r--.-._._._._._._._.-~- -!. 1 22 23 Add lines 18 and 21 o o o o o o o o o o o o o o o o o o Multiply line 22 by 20% (0.20) o o o o o o o o o o o o o 24 Wages for qualified services (do not include wages used in figuring the work opportunity credit) o o o o o o o o o o o o o o o o o o o o 25 26 Cost of supplies o o o o o o o o o o o o o o o o o o o o o o o o o o o o o Rental or lease costs of computers (see the line 7 instructions) ooooo 27 Enter the applicable percentage of contract research expenses (see the 28 line 8 instructions) o o o o o o o o o o o o o o o o o o o o o o o o o o o Total qualified research expenses. Add lines 24 through 27 o o o o o o o 0 :1 22 I o I 23 I o o o o I I 24 25 6,082,219 26 0 5,858,711 1'171 ,742 0 27 26,504,511 28 32,586,730 lines 30 and 31 29 115' 542 ,341 30 19,257,057 31 Divide line 29 by 6.0 o o o o o o o o o o o o o o o o o o o o Subtract line 30 from line 28. If zero or less, enter - 0- o o o o 32 Multiply line 31 by 14% (0.14). If you skipped lines 30 and 31, multiply line 28 by 6% (0.06) o 29 5,858,711 Enter your total qualified research expenses for the prior 3 tax years. If you had no qualified research expenses in any one of those years, skip 30 For Paperwork Reduction Act Notice, see separate instructions. ERF ~3~1~_____1_3_,_3_2_9_,_67_3---t 1,866'154 o 32 Form F5.00.01 6765 (2015) US6765P1 DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) Form 6765 (2015) 56-2155481 Duke Energy Progress, LLC Page 2 Section B - Alternative Simplified Credit. (continued) 33 Add lines 23 and 32 34 Are you electing the reduced credit under section 280C? ~ Yes EJ No D If "Yes," multiply line 33 by 65% (0.65). If "No," enter the amount from line 33 and see the line 17 instructions for the statement that must be attached. Members of controlled groups or businesses under common control: see instructions for the statement that must be attached o Section C - Summary .r:-1 3,037,896 u 35 Enter the portion of the credit from Form 8932, line 2, that is attributable to wages that were also 36 used to figure the credit on line 17 or line 34 (whichever applies) o o o o o o o o o o o o o o Subtract line 35 from line 17 or line 34 (whichever applies). If zero or less, enter - 0- .136 37 Credit for increasing research activities from partnerships; S corporations, estates, and trusts .131 I I 38 Add lines 36 and 37. Estates and trusts go to line 39. Partnerships and S corporations, stop here and 39 Amount allocated to beneficiaries of the estate or trust (see instructions) o o o o o o o o o o o o o o .139 I 40 Estates and trusts, subtract line 39 from line 38. Report the amount on Form 3800, Part 111, line 1c. 1'974 ,632 0 report this amount on Schedule K. All others, stop here and report this amount on Form 3800, Part Ill, line 1c. 1'974 ,632 0 1'974 ,632 Form F5.00.01 6765 (2015) US6765P2 DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) Supplemental Attachment to Schedule M-3 8916-A Form ~Attach to Schedule M- 3 for Form 1065, 1120, 1120- L, 1120- PC, or 1120S. Department of the Treasury Internal Revenue Service 2015 ~Information about Form 8916-A and its instructions is at www.irs.gov/form1120. Name of common parent Employer identification number 56-2155481 Duke Energy Progress, LLC Name of subsidiary Pl:irtJ OM B No. 1545- 0123 Employer identification number Cost of Goods Sold (a) Expense per Income Statement Cost of Goods Sold Items 1 Amounts attributable to cost flow assumptions oooo 2 Amounts attributable to: (b) Temporary Difference (c) Permanent Difference (d) Deduction per Tax Return 0 0 0 0 0 0 0 0 a Stock option expenseoo b Other equity based compensation . . . . . . . . . . r - - - - - - - -0+ - - - - - - - -0+ - - - - - - - -0+ - - - - - - - -0- c Meals and entertainment d e .......... r--------+--------+--------+--------- 0 0 0 0 Parachute payments ooo 0 0 0 0 Compensation with section 162(m) limitation o 0 0 0 0 .............. r--------+--------+--------+--------- Pension and profit sharing ooo . . . . . . . . . . . r - - - - - - - -0+ - - - - - - - -0+ - - - - - - - -0+ - - - - - - - -0- g Other post- retirement benefits o . . . . . . . . . . . r - - - - - - - -0+ - - - - - - - -0+ - - - - - - - -0+ - - - - - - - -0- h Deferred compensation. ............... 0 0 0 0 f-=======+-=======+-=======+-=======~ Reserved Amortization . . . . . . . . . . . . . . . . . . . . . r - - - - - - - -0+ - - - - - - - -0+ - - - - - - - -0+ - - - - - - - -0k 0 0 0 Depletion oo . . . . . . . . . . . . . . . . . . . . . r - - - - - - - - 0+ - - - - - - - - + ---------+--------- Depreciation 0 0 0 0 m Corporate owned life insurance premiums o 0 0 0 0 n Other section 263A costs 0 0 0 0 ............ r--------+--------+---------+--------- 3 Inventory shrinkage accruals o 0 0 0 0 4 Excess inventory and obsolescence reserves. 0 0 0 0 5 Lower of cost or market write- downs 0 0 0 0 6 Other items with differences (attach -2, 133, 018, 006 304, 152 ,747 0 -1 ,828,865,259 s:a:e~~n~)~T~T. 2?41 oooo f-1--_-4_4_5_,-72_9_,_0_8_3-+1=======+1=======+-----'-_4_4_5__.c,_7_29--'-,0_8_3_ 7 8 Other items with no differences ............ Total cost of goods sold. Add lines 1 through 7, in columns a, b, c, and d. Enter totals on the a1212licable Schedule M- 3. See instructions o ..... -2,578,747,089 304' 152 '747 0 -2,274,594,342 For Paperwork Reduction Act Notice, see instructions. Form 8916-A (2015) ERF F5.00.01 US8916A1 DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) Form 8916- A (2015) Partll Page 2 Interest Income Interest Income Item (a) (b) (c) (d) Income (Loss) per Income Statement Temporary Difference Permanent Difference Income (Loss) per Tax Return Tax- exempt interest I income 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 389' 145 0 0 389' 145 1 ,470 ,896 0 0 1 ,470 ,896 1 ,860 ,041 0 0 1 ,860 ,041 Interest income from hybrid securities 3 4a I Sale/lease interest income lntercompany interest income - From outside tax affiliated qroup 4b lntercompany interest income - From tax affiliated group 5 Other interest income 6 Total interest income. Add lines 1 through 5 in columns a, b, c, and d. Enter total on the applicable Schedule M- 3. See instructions. Part Ill Interest Expense Interest Expense Item 1 (c) (d) Permanent Deduction per Tax Statement Difference Difference Return 0 0 0 0 0 0 0 0 0 0 0 0 299,640 0 0 299,640 229,468,439 -987,615 -2,314,227 226' 166 '597 229,768,079 -987,615 -2,314,227 Lease/purchase interest expense 3a (b) Temporary Interest expense from hybrid securities 2 (a) Expense per Income lntercompany interest expense - Paid to outside tax affiliated group 3b lntercompany interest expense - Paid to tax affiliated qroup 4 Other interest expense 5 Total interest expense. Add lines 1 through 4 in columns a, b, c, and d. Enter total on the applicable Schedule M- 3. See instructions. 226,466,237 Form 8916-A (2015) F5.00.01 US8916A2 DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) 30-Aug-2016 13:14:22 2015 FEDERAL FORM 1120 TAX RETURN Duke Energy Progress, LLC 56-2155481 Year: 2015 STATEMENT 1 FORM 1120, PG 1, LN 10 OTHER INCOHE LINE 10: OTHER INCOME MISCELLANEOUS OTHER INCOME SECTION 481A ADJUSTMENT INC (LOSS) FROM U.S. PSHIP OTHER INCOME FROM U.S. PSHIP OTHER INCOME FROM OTHER FLOW-THRU HEDGING TRANSACTIONS-OTHER TOTAL Page 32 4,383,716 20, 915, 452 825,321 828 4 92 (14,694,878) 11, 430, 931 Set [1/1] STATEMENT 1 DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) 30-Aug-2016 13:14:24 2015 FEDERAL FORM 1120 TAX RETURN Duke Energy Progress, LLC 56-2155481 Year: 2015 STATEMENT 2 FORM 1120, PG 1, LN 17 TAXES LINE 17: TAXES PROPERTY TAXES STATE TAXES BASED ON INC - CURRENT 89,334,551 703,574 FRANCHISE TAX 8,895,057 PAYROLL TAXES 39, 994,596 MISCELLANEOUS OTHER TAXES TOTAL Page 33 2, 644, 714 141,572,492 Set [1/1] STATEMENT 2 DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) 30-Aug-2016 13:14:27 2015 FEDERAL FORM 1120 TAX RETURN Duke Energy Progress, LLC 56-2155481 Year: 2015 STATEMENT 3 FORM 1120, PG 1, LN 26 OTHER DEDUCTIONS LINE 26: OTHER DEDUCTIONS GENERAL AND ADMIN EXPENSES 37,470,930 OFFICE SUPPLIES 26,460,075 MEALS & ENTERTAINMENT 6, 282, 915 EXP REG DEF FOR BK NOT TAX 83,837,761 INJURIES AND DAMAGES 17,712,961 INSURANCE 17,715,641 SELF DEVELOPED SOFTWARE 14,088,739 MISCELLANEOUS DEDUCTIONS 10,833,889 RESEARCH & DEVELOPMENT 1,409,715 CIVIC & POLITICAL 735,809 ENVIRONMENTAL CLEANUP EXPENSE 78,030,470 OUTSIDE SERVICES 61,478,095 DECOMMISIONING & DISMANTLEMENT EXP 13,063,762 SEC 48l(A) ADJUSTMENTS 10,064,984 SECTION 174 R&E DEDUCTION OTHER EXPENSE FROM U.S. PSHIP OTHER EXPENSE FROM OTHER FLOW-THRU OTHER AMORTIZATION - PRIOR YEAR OTHER AMORTIZATION - CURRENT YEAR TOTAL Page 34 41,750,979 18,476 403,556 8,897,545 131,602 430, 387' 904 Set [1/1] STATEMENT 3 DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) 30-Aug-2016 13:14:30 2015 FEDERAL FORM 1120 TAX RETURN Duke Energy Progress, LLC 56-2155481 Year: 2015 STATEMENT 4 FORM 1120, PG 5, SCH L, LN 6, BEG OTHER CURRENT ;,SSETS - BEGINNING LINE 6: OTHER CURRENT ASSETS REGULATORY ASSET 149,369,874 REGULATORY ASSET - RECEIVABLE 137' 945, 409 OTHER CURRENT ASSETS OTHER PREPAID EXPENSES MARK TO MARKET - CURRENT 529,800 3,251,430 I 4, 922 I NET DEFERRED TAX ASSET 105,343,745 FEDERAL INCOME TAX RECEIVABLE 271,033,436 STATE INCOME TAX RECEIVABLE TOTAL Page 35 451,508 667' 920, 280 Set [1/1] STATEMENT 4 DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) 30-Aug-2016 13:14:32 2015 FEDERAL FORM 1120 TAX RETURN Duke Energy Progress, LLC 56-2155481 Year: 2015 STATEMENT 5 FORM 1120, PG 5, SCH L, LN 9, BEG OTHEP.. nrvESTl1ENTS - BEGINNING LINE 9: OTHER INVESTMENTS INVESTMENTS IN UNCONSOL AFFILIATES 708,571 INVESTMENTS IN SUBSIDIARIES 6,375,443 DECOMMISSIONING TRUST FUNDS 1,700,542,723 1,707,626,737 TOTAL Page 36 Set [1/1] STATEMENT 5 DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) 30-Aug-2016 13:14:35 2015 FEDERAL FORM 1120 TAX RETURN Duke Energy Progress, LLC 56-2155481 Year: 2015 FORM 1120, PG 5, SCH L, LN 14, BEG STATEMENT 6 OTHER ;,SSETS - BEGINNING LINE 14: OTHER ASSETS CLEARING - OTHER NON-AMORTIZABLE INTANGIBLE ASSETS DEFERRED CHARGES RETIREMENT PLAN PREFUNDING L.T. Tax Receivable UNAMORTIZED DEBT EXPENSES UNAMORT LOSS ON REAACQUIRED DEBT OTHER ASSETS 916 71,871,639 48,251,872 137,107,214 182,434 33, 936, 881 7,717,121 155,183,490 REGULATORY ASSET 1,740,038,317 REGULATORY TAX ASSET 141,098,082 Regulatory Asset - Pension 353,687,120 ARO REGULATORY ASSET TOTAL Page 37 431,997,858 3, 121, 072, 944 Set [1/1] STATEMENT 6 DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) 30-Aug-2016 13:14:38 2015 FEDERAL FORM 1120 TAX RETURN Duke Energy Progress, LLC 56-2155481 Year: 2015 STATEMENT 7 FORM 1120, PG 5, SCH L, LN 18, BEG OTREP.. CUFRENT LIABILITIES - BEGINNING LINE 18: OTHER CURRENT LIABILITIES OTHER CURRENT LIABILITIES 25, 640, 920 OTHER CURRENT LIAB - PENSION 20,234,082 ACCRUED PAYROLL 126,519,150 MARK TO MARKET - CURRENT 108, 282, 958 FEDERAL INCOME TAX PAYABLE STATE INCOME TAX PAYABLE SALES TAX PAYABLE ACCRUED PROPERTY TAX TAXES - OTHER ACCRUED INTEREST ACCRUED FRANCHISE TAXES 16,211,592 4,577,782 15,732,822 315,385 (117,042) 81,265,706 376,532 OTHER RESERVES 892,000 ACCRUED LIABILITIES 307,707 ACCRUED SEVERANCE ACCRUED COMMISSIONS CUSTOMER DEPOSITS OTHER REGULATORY LIABILITY 114,704,716 71,403,737 607,777,315 TOTAL Page 38 1,600,070 19,829,198 Set [1/1] STATEMENT 7 DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) 30-Aug-2016 13:14:41 2015 FEDERAL FORM 1120 TAX RETURN Duke Energy Progress, LLC 56-2155481 Year: 2015 STATEMENT 8 FORM 1120, PG 5, SCH L, LN 21, BEG OTREP.. LIABILITIES - BEGINNING LINE 21: OTHER LIABILITIES ARO - Regulatory Liability Deferred Investment Tax Credits FED DEFERRED INC TAXES - NONCURRENT DEFERRED STATE INCOME TAXES ACCRUED DEFERRED INCOME TAXES MARK TO MARKET - NONCURRENT Other Def. Credits - Pension OTHER DEF CREDITS - ARO OTHER DEFERRED CREDITS DEF. CREDIT - PENSION OTHER LIABILITIES RESERVE - INJURIES & DAMAGE DEFERRED COMPENSATION TOTAL Page 39 1,099,727,389 78,826,366 (16,331,474) (3,227,830) 2,927,414,580 22,466,003 290,031,400 3, 904, 712,129 58,202,695 61,015,435 (22,445,864) 5,568,209 697' 096, 508 9,103,055,546 Set [1/1] STATEMENT 8 DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) 30-Aug-2016 13:14:44 2015 FEDERAL FORM 1120 TAX RETURN Duke Energy Progress, LLC 56-2155481 Year: 2015 STATEMENT 9 FORM 1120, PG 5, SCH L, RETl,INED E,,_.RNINGS-APPROPRIATED - LN 24, BEG BEGINNING LINE 24: RETAINED EARNINGS-APPROPRIATED RETAINED EARNINGS--APPROPRIATED Page 40 Set [1/1] 3,849,739 STATEMENT 9 DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) 30-Aug-2016 13:14:47 2015 FEDERAL FORM 1120 TAX RETURN Duke Energy Progress, LLC 56-2155481 Year: 2015 STATEMENT 10 FORM 1120, PG 5, ADJUSTMENTS TO SF.AREHOLDEP..S' SCH L, EQUITY - LN 26, BEG BEGINNING LINE 26: ADJUSTMENTS TO SHAREHOLDERS' EQUITY OTHER COMPREHENSIVE INCOME Page 41 Set [1/1] (257,076) STATEMENT 10 DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) 30-Aug-2016 13:14:50 2015 FEDERAL FORM 1120 TAX RETURN Duke Energy Progress, LLC 56-2155481 Year: 2015 STATEMENT 11 FORM 1120, PG 5, SCH L, LN 6, END OTHEP.. CUFRENT ASSETS - ENDING LINE 6: OTHER CURRENT ASSETS - ENDING REGULATORY ASSET REGULATORY ASSET - RECEIVABLE OTHER CURRENT ASSETS OTHER PREPAID EXPENSES MARK TO MARKET - CURRENT FEDERAL INCOME TAX RECEIVABLE STATE INCOME TAX RECEIVABLE TOTAL Page 42 171,524,996 92,697,821 632,165 4,530,360 1,686,658 97,816,643 13,449,209 382,337,852 Set [1/1] STATEMENT 11 DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) 30-Aug-2016 13:14:53 2015 FEDERAL FORM 1120 TAX RETURN Duke Energy Progress, LLC 56-2155481 Year: 2015 STATEMENT 12 FORM 1120, PG 5, SCH L, LN 9, END OTHER INVESTMENTS - ENDING LINE 9: OTHER INVESTMENTS INVESTMENTS IN UNCONSOL AFFILIATES 271,551 INVESTMENTS IN SUBSIDIARIES 6,930,081 DECOMMISSIONING TRUST FUNDS 2, 034, 803, 972 TOTAL Page 43 2,042,005,604 Set [1/1] STATEMENT 12 DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) 30-Aug-2016 13:14:55 2015 FEDERAL FORM 1120 TAX RETURN Duke Energy Progress, LLC 56-2155481 Year: 2015 STATEMENT 13 FORM 1120, PG 5, SCH L, LN 14, END OTHEP.. ASSETS - ENDING LINE 14: OTHER ASSETS CLEARING - OTHER 6,858 NON-AMORTIZABLE INTANGIBLE ASSETS DEFERRED CHARGES 82,444,163 61,321,107 RETIREMENT PLAN PREFUNDING L.T. Tax Receivable 144,271, 965 36,758,034 UNAMORTIZED DEBT EXPENSES UNAMORT LOSS ON REAACQUIRED DEBT OTHER ASSETS 2,716,026 6,643,821 160,567,498 REGULATORY ASSET 735,130,898 REGULATORY TAX ASSET 106,130,883 Regulatory Asset - Pension ARO REGULATORY ASSET TOTAL Page 44 365, 991, 404 1,496,205,528 3,198,188,185 Set [1/1] STATEMENT 13 DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) 30-Aug-2016 13:14:58 2015 FEDERAL FORM 1120 TAX RETURN Duke Energy Progress, LLC 56-2155481 Year: 2015 STATEMENT 14 FORM 1120, PG 5, SCH L, LN 18, END OTHER CURRENT LI,,..BILITIES - ENDING LINE 18: OTHER CURRENT LIABILITIES OTHER CURRENT LIABILITIES 44,891,716 OTHER CURRENT LIAB - PENSION 20,135,420 ACCRUED PAYROLL MARK TO MARKET - CURRENT 113,700,753 76,283,743 FEDERAL INCOME TAX PAYABLE (167,505) SALES TAX PAYABLE 9,681,727 TAXES - OTHER ACCRUED INTEREST (107,692) 95,571,203 OTHER RESERVES 647,000 ACCRUED LIABILITIES 312,117 ACCRUED SEVERANCE 20,117,452 CUSTOMER DEPOSITS 141,366,080 OTHER REGULATORY LIABILITY TOTAL Page 45 85,384,689 607,816,703 Set [1/1] STATEMENT 14 DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) 30-Aug-2016 13:15:01 2015 FEDERAL FORM 1120 TAX RETURN Duke Energy Progress, LLC 56-2155481 Year: 2015 STATEMENT 15 FORM 1120, PG 5, SCH L, LN 21, END OTHER LI,,..BILITIES - ENDING LINE 21: OTHER LIABILITIES ARO - Regulatory Liability Deferred Investment Tax Credits ACCRUED DEFERRED INCOME TAXES MARK TO MARKET - NONCURRENT Other Def. Credits - Pension OTHER DEF CREDITS - ARO 1,144,787,321 131,604,359 3,027,491,083 19, 839, 906 261,704,866 4,567,093,298 OTHER DEFERRED CREDITS 18, 049, 996 DEF. CREDIT - PENSION 25,124,057 OTHER LIABILITIES 2,559,344 RESERVE - INJURIES & DAMAGE 5,307,466 DEFERRED COMPENSATION TOTAL Page 46 707' 623, 933 9, 911, 185, 629 Set [1/1] STATEMENT 15 DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) 30-Aug-2016 13:15:03 2015 FEDERAL FORM 1120 TAX RETURN Duke Energy Progress, LLC 56-2155481 Year: 2015 STATEMENT 16 FORM 1120, PG 5, SCH L, LN 24, END RETAINED EAF.NINGS-APPP..OPRIATED - ENDING LINE 24: RETAINED EARNINGS-APPROPRIATED RETAINED EARNINGS--APPROPRIATED Page 47 Set [1/1] 4,225,695 STATEMENT 16 DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) 30-Aug-2016 13:15:06 2015 FEDERAL FORM 1120 TAX RETURN Duke Energy Progress, LLC 56-2155481 Year: 2015 STATEMENT 17 FORM 1120, PG 5, SCH L, LN 26, END lill.IUSTHENTS TO SHl'>.REHOLDERS' EQUITY - ENDING LINE 26: ADJUSTMENTS TO SHAREHOLDERS' EQUITY OTHER COMPREHENSIVE INCOME Page 48 Set [1/1] (232,257) STATEMENT 17 DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) 30-Aug-2016 13:15:08 2015 FEDERAL FORM 1120 TAX RETURN Duke Energy Progress, LLC 56-2155481 Year: 2015 STATEMENT 18 FOP~~ 1120, SCH M-2, LN 3 OTHER INCP..EASES LINE 3: OTHER INCREASES RETAINED EARNINGS - OTHER INCREASES Page 49 Set [1/1] 4' 034' 916, 815 STATEMENT 18 DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) 30-Aug-2016 13:15:12 2015 FEDERAL FORM 1120 TAX RETURN Duke Energy Progress, LLC 56-2155481 Year: 2015 STATEMENT 19 FOP~~ 1120, SCH M-2, LN 6 OTHER DECP..EASES LINE 6: OTHER DECREASES RETAINED EARNINGS - OTHER DECREASES Page 50 Set [1/1] 4,035,292,774 STATEMENT 19 DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) 30-Aug-2016 13:15:14 2015 FEDERAL FORM 1120 TAX RETURN Duke Energy Progress, LLC 56-2155481 Year: 2015 STl'>_TEMENT 20 FORM 1125-A, LINE 5 OTHER COSTS LINE 5: OTHER COSTS COGS: OPERATING EXPENSE TRANSMISSION EXPENSES DISTRIBUTION EXPENSES FUELS USED IN ELEC PWR GENERATION TOTAL Page 51 477,903,496 15,166,425 42,050,854 1, 308, 910, 909 1,844,031,684 Set [1/1] STATEMENT 20 DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) 30-Aug-2016 13:15:17 2015 FEDERAL FORM 1120 TAX RETURN Duke Energy Progress, LLC 56-2155481 Year: 2015 COLUMN A INCOME(LOSS) PER INCOME STATEMENT SCH 11-.3, COLUMN B TEMPORARY DIFFERENCE COLUMN C PERMANENT DIFFERENCE COLUMN D INCOME(LOSS) PER TAX RETURN PAR'.r I I, LINE 25 LINE 25: OTHER INCOME (LOSS) ITEMS WITH DIFFERENCES 5, 277' 925, 581 1,958,858 MISCELLANEOUS OTHER INCOME GROSS SALES 8,433,454 :4,049,738) COLI POLICY GAINS/DEATH BENEFITS 7,226,134 (7,226,134) 47,191,939 (47,191,939) AFUDC EQUITY TOTAL Page 52 5,340,777,108 Set [1/1] :2,090,880) STMT 21 5,279,884,439 4,383,716 (54,418,073) SCH M-3, 5,284,268,155 PART II, LINE 25 DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) 30-Aug-2016 13:15:20 2015 FEDERAL FORM 1120 TAX RETURN Duke Energy Progress, LLC 56-2155481 Year: 2015 STATEMENT 22 SCH M-3, Pl'>.RT II, LINE 28 LINE 28: OTHER INC (LOSS) EXP ITEMS WITH NO DIFF OTHER RENTAL INCOME RENTS 12,194,599 (34,039,444) FRANCHISE TAX (8,895,057) PAYROLL TAXES (39,994,596) MISCELLANEOUS OTHER TAXES ADVERTISING (2,932,568) OFFICE SUPPLIES RESEARCH & DEVELOPMENT OUTSIDE SERVICES TOTAL Page 53 (2,644,714) (26,460,075) (1,409,715) (61,478,095) (165,659,665) Set [1/1] STATEMENT 22 DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) 30-Aug-2016 13:15:22 2015 FEDERAL FORM 1120 TAX RETURN Duke Energy Progress, LLC 56-2155481 Year: 2015 COLUMN A EXPENSE PER INCOME STATEMENT SCH 11-.3, COLUMN B TEMPORARY DIFFERENCE PAR'.r I II, COLUMN C PERMANENT DIFFERENCE COLUMN D DEDUCTION PER TAX RETURN LINE 37 LINE 37: OTHER EXPENSE/OED ITEMS WITH DIFFERENCES SALARIES & WAGES 101,018,766 :17,551,218) 83,467,548 EQUIPMENT REPAIRS 581, 322, 920 176,349,187 757,672,107 88,820,361 514,190 PROPERTY TAXES FUEL TAX - FEDERAL AND STATE EMPLOYEE BENEFIT PROGRAMS FAS 112 POST EMPLOYMENT BENEFITS 40l(k) INCENTIVE MATCH 22,549 89,334,551 (22,549) 65,467,668 :7,074,529) 58,393,139 768,562 3,387,465 4,156,027 (2,646,255) 6,269 (2,639,986) 37,470,930 GENERAL AND ADMIN EXPENSES 38, 972, 882 :1,501,952) EXP REG DEF FOR BK NOT TAX (27,716,252) lll, 554' 013 83,837,761 INJURIES AND DAMAGES 14,847,398 2,865,563 17,712,961 INSURANCE 18,283,752 :568,lll) 17,715,641 14,088,739 14,088,739 SELF DEVELOPED SOFTWARE MISCELLANEOUS DEDUCTIONS 9,192,846 CIVIC & POLITICAL 2,545,061 ENVIRONMENTAL CLEANUP EXPENSE 1,742,546 76, 287' 924 14,106,711 :4,713,074) DECOMMISIONING & DISMANTLEMENT EXP SECTION 174 R&E DEDUCTION TOTAL Page 54 10,833,889 (1,809,252) 397,036,488 STATEMENT 23 735,809 78,030,470 3,670,125 13,063,762 1,838,324 1,305,624,327 SCH M-3, PART III, LINE 37 41,750,979 906,749,515 Set [1/1] 1,641,043 41,750,979 DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) 30-Aug-2016 13:15:25 2015 FEDERAL FORM 1120 TAX RETURN Duke Energy Progress, LLC 56-2155481 Year: 2015 COLUMN A EXPENSE PER INCOME STATEMENT COLUMN B TEMPORARY DIFFERENCE COLUMN D DEDUCTION PER TAX RETURN COLUMN C PERMANENT DIFFERENCE FORM B9:L 6.-l\, LINE 6 LINE 6: OTHER ITEMS WITH DIFFERENCES COGS: OPERATING EXPENSE DISTRIBUTION EXPENSES FUELS USED IN ELEC PWR GENERATION TOTAL Page 55 Set [1/1] (663,480,793) 185,577,297 (42,050,851) :3 I (42,050,854) (1,427,486,362) 118,575,453 (1,308, 910, 909) (2,133,018,006) 304,152,747 (477,903,496) c STMT 24 (1,828,865,259) FORM 8916-A, LINE 6 DUKE ENERGY PROGRESS, LLC 56-2155481 LLC Item No 13(a)(8) CALCULATION OPTIONS Enter 1 SET Option, 0 to RESET. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. Print all Pro- forma Report Schedules Use Zero for Tax on Schedule J, Income Brackets Use Zero for Exemptions on Form 4626 Do NOT compute Federal Income Tax Do NOT Compute Tax Credit Limitations Do NOT Compute Excess Capital Loss Limitation Compute Gains/(Losses) on Separate Company Basis Compute Excess Capital Loss Limit on Total Only Do NOT Compute Contribution Limitation Credit Entire Overpayment to Next Year Check Box "2220 Form Attached" on Page 1 and include Underpayment Penalty on Page 1, Line 33, if any Compute NOL Limitation Do NOT Compute Special Deductions Limitation Always Print Form for Pages 1 through 5 Skip ACE Adjustment, Form 4626, Line 4 Small Corporation Exempt from The Alt Min Tax Compute contribution limitation company by company Enter 1 for enterprise zone Sec 179 $535,000 Ded (Form 4562, line 1) Electing Reduced Credit for Form 6765 Enter 1 if mixed group top- consolidated Sch M- 3 Enter 1 if mixed group sub- consolidated Sch M- 3 Enter 1 if Extension has been granted Always compute Form 1120 page 5 Do not compute Schedule M-1 Always compute Schedule M- 3 Compute Schedule M-1 and Part I of Schedule M- 3 (NO 8916-A) Enter 1 if detail NOT req - Form 4797 Part I G/L Enter 1 if detail NOT req - Form 4797 Part II G/L Sch. M- 3 Part II LNS 25 & Part Ill LN 37 and Form 8916-A LN 6 to print detail by adjustment Electing alternative simplified credit for Form 6765 Enter 1 if qualified personal service corporation Suppress Form 1125- E if Total Receipts < $500,000 (Single Return only) Do Not Compute Sec 199 AMT Adjustment Suppress Statement on Schedule M- 3, Part II, Line 28 Compute ACE W/S Line 3a Tax- Exempt Interest Income Compute ACE W/S Line 4a Certain Dividends Received Addback Suppress Statements Not Required fore- File Report SEC 1256 Gain (Loss) on Form 8949 Checkbox C/F Page Enter 1 to use 1120 TTL Assets, Liabilities and Net Income (Loss) for M3 Page 1, Line 4A, 12A Enter 1 if all gross receipts treated as DPGR per de minimis rules (Form 8903) Enter 1 to truncate SSN to use last 4 digits (form 1125- E) Enter 1 If Special Provision Applied - Form 8949 SIT Enter 1 If Special Provision Applied - Form 8949 UT Enter 1 to use income tax posted from Schedule 0 [] D [] [] D D [] [] D [] [] [] D [] [] [] [] [] D [] [] [] [] D D [] [] [] [] D [] [] [] [] [] D [] [] [] [] [] [] [] [] Option applicable for XLNLCyy calc only: 45. Suppress Statements on Form 1120, Pages 1 through 5 46. Enter 1 to suppress Form 8816 cg cg Option applicable for FETyy and XFETyy calcs only: 45. Enter 1 to post R/E diff to sch M- 2 as other increases/decreases 46. Enter 1 to plug in rounding differences for Schedule L and M- 3 cg cg G5.00.03 USCALCP1 DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) 56-2155481 Duke Energy Progress, LLC FEDERAL DIAGNOSTICS BALANCE SHEET ASSETS LIAB. & EQUITY DIFFERENCE Beginning Balance Sheet 22,380,094,443 22,380,094,443 0 Ending Balance Sheet 24,894,448,218 24,894,448,218 0 SCH.L SCH. M-2 Beginning Retained Earnings 3,704,338,592 3,704,338,592 0 Ending Retained Earnings 4,270,446,440 4,270,446,440 0 PROFIT AND LOSS Taxable Income RETURN SCH. M-1/M- 3 -136,797,751 M2 Net Income Per Books (Acct. 3952010) ___56_6_,4_8_3_,8_o7_ TOTAL INPUT Excess Section 179 Depreciation DIFFERENCE -136,797,751 0 566,483,807 0 DEDUCTED 0 0 0 NOTE: The amount of Salaries and Wages on form 1120, page 1, line 13 is assumed to be net of the Work Opportunity Credit. You must enter a M1 event for this deduction. COST OF GOODS SOLD Beginning Inventory Ending Inventory FORM- COMPUTED M- ITEMS BALANCE SHEET SCHEDULE A DIFFERENCE 966, 400 ,711 0 966, 400 ,711 1 , 088, 273 ,782 0 1 , 088, 273 ,782 AS COMPUTED DATABASE DIFFERENCE Other income - Form 6478 0 0 0 Other income - Form 8864 0 0 0 Other expense - Form 8903 0 0 0 FORM 1125-E Compensation of officers LINE 3 + LINE 4 LINE 2 0 DIFFERENCE 0 0 G5.00.01 USDIAGP1 DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) Enterprise Name Duke Energy Report Name Report Description 7Ll00 2015 FEDERAL FORM 1120 TAX RETURN-12 MOS. 2015 FEDERAL FORM 1120 TAX RETURN Date Refreshed Time Refreshed Date Printed Time Printed Case Number Tax Year Base Cale Constant Custom Cale Entity Entity Group Column File Alternate Column File Data Spec Range File Location Code From Row Thru Row Version Number User ID 8/30/2016 1: 14 PM 8/30/2016 1: 14 PM 1 2015 FE15 7Ll00TSP FE15 1 99999 7286 DWhitle DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) C Corporation Tax Return 2015 CD-405 (44) North Carolina Department of Revenue DOR Use Only 15 For calendar year 2015, or other tax year beginning and ending DUKE ENERGY PROGRESS LLC 550 SOUTH TRYON STREET DEC 41A NC 28202 Initial Return Final Return Short Year Return DUKE 550 D 28202 pp TN Combined Return Amended Return NAICS Code 2 2 11 0 0 NC- 478 is attached CD- 479 is attached Has Escheatable Property Non U.S./Foreign Fed Sch M- 3 is attached D D Captive REIT Tax Exempt 562155481 221100 PFSP 9803735223 5 6 2 15 5 4 8 1 Federal Employer ID Number N.C. Secretary of State ID Number IR N FR N SR N CR N AR N TE N NF N M3 N RE N 478 N 479 N EP N DUKE ENERGY PROGRESS LLC 550 SOUTH TRYON STREET DEC 41A 6 3 0 0 1 4 4 0 1 7 CHARLOTTE NC 28202 GR 5279884439 09 0 21 0 31 0 TA 24894448218 10 -136923449 22 0 32 136607 01 0 11 -310418423 24 0 36 0 HCE N 13 0 26 0 EU 02 0 15 0 27 0 37A 0 03 0 16 -447341872 29A 0 37B 0 05 0 17 0844281 29B 136607 40 0 06 0 18 -377682243 29C 0 41 0 07 0 19 0 29D 0 42 0 08 0 20 -377682243 29E 0 43 136607 Sch. A Computation of Franchise Tax Capital Stock, Surplus, & Undivided Profits Holding Company Exception 2. Investment in N.C. Tangible Property 3. Appraised Value of N.C. Tangible Property 4. Taxable Amount 5. Total Franchise Tax Due 6. Payment with Franchise Tax Extension 7. Tax Credits 8. Franchise Tax Due Sign Return Below [XI Refund Due DIRECTOR S&L TAXES o N 0 0 0 0 0 0 0 136607 I 9. 0 Franchise Tax Overpaid Sch. B Computation of Corporate Income Tax 10. Federal Taxable Income 11 Adjustments to Federal Taxable Income 12. Net Income Before Contributions 13. Contributions to Donees Outside N.C. 14. N.C. Taxable Income 15. Nonapportionable Income 16. Apportionable Income 17. Apportionment Factor -136923449 -310418423 -447341872 0 -447341872 0 -447341872 084.4281% 0 D Payment Due 980-373-5223 Signature and Title of Officer Corporate Telephone Number Date Signature of Paid Preparer Preparer's Telephone Number Preparer's FEIN, SSN, or PTIN I certify that, to the best of my knowledge, th is return is accurate and complete. D FEIN D SSN D PTIN Mail to: NCDOR, P.O. Box 25000, Raleigh, N.C. 27640-0500. Returns are due by the 15th day of the 4th month after the end of the income year. F5.00.05 NCCD4051 DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) CD-405 2015 Page 2 (44) Legal Name (First 1O Characters) DUKE ENERG 562155481 Federal Employer ID Number CD- 405 Line- by- Line Information N.C. Education Endowment Fund: You may contribute to the N.C. Education Endowment Fund by making a contribution or designating some or all of your overpayment to the Fund. To make a contribution, enclose Form NC- EDU and your payment of Sch. B Computation of Corporate Income Tax 18. Income Apportioned to N.C. -377682243 21 -377682243 0 0 % Depletion over Cost - N.C. Property 22. State Net Loss (Attach schedule) 23. Income Before Contributions to N.C. Donees 0 -377682243 26. N.C. Net Income Tax 27. Annual Report Fee 28. Add Lines 26 and 27 0 0 0 (previous payments if amended) c. Partnership (include Form D- 403, NC K-1) d. Nonresident Withholding (include 1099 or W- 2) e. Tax Credits 30. Add Lines29athrough 29e lncomeTaxDue 32. Income Tax Overpaid 34. Income Tax Due or Overpayment 35. Balance of Tax Due or Overpayment 36. Underpayment of Estimated Income Tax 37. a. Interest b. Penalties c. Add Lines 37a and 37b 38. Total Due 39. Overpayment 40. 2016 Estimated Income Tax N.C. Nongame and Endangered Wildlife Fund 42. N.C. Education Endowment Fund 43. Amount to be Refunded 0 0 0 0 136607 4. 0th er surplus 5. Deferred or unearned income 6. Allowance for bad debts 7. LIFO reserves -136607 -136607 0 0 0 0 0 136607 0 0 0 136607 0 0 County tax value of N.C. tangible property Sch. G Federal Taxable Income Before NOL Deduction 5279884439 a. Gross receipts or sales 0 b. Returns and allowances 5279884439 2274594342 3005290097 179568 c. Balance- Line1aminusLine1b 2. Cost of goods sold (Attach schedule) 3. Gross Profit (Line 1c minus Line 2) 4330917 11686976 b. Other interest 6. Gross rents 0 7. Gross royalties 9. Net gain (loss) (Attach schedule) 10. 0th er income (Attach schedule) 11 Total Income -675132 -24708281 11430931 3007535076 0 12. Compensation of officers (Attach schedule) 13. Salaries and wages (less employment credits) 14. Repairs and maintenance 15. Bad debts 16. Rents 17. Taxes and licenses 19. Charitable contributions 0 0 0 0 0 0 0 0 5. a. Interest on obligations of U.S. and its instrumentalities 18. Interest 20. a. Depreciation 92204466 757672107 15184883 34039444 141572492 226466237 5549544 1342464262 0 b. Depreciation included in cost of goods sold 1342464262 c. Balance- Line 20a minus 20b 21 0 Depletion 2932568 21200622 74658298 22. Advertising 23. Pension, profit- sharing, and similar plans 24. Employee benefit programs 10. Affiliated indebtedness (Attach schedule) 0 0 0 11 0 9. Add Lines 1th rough 8 0 0 8. Investment in N.C. Tangible Property 8. Capital gain net income (Attach schedule) 8. Other reserves th at do not represent definite and accrued legal liabilities (Attach schedule) with respect to N.C. tangible property 7. Debts existing for N.C. real estate 4. Dividends (Attach schedule) 0 Total capital stock outstanding less cost 2. Paid- in or capital surplus 6. Acc. depreciation, depletion, and amortization 136607 Sch. C Capital Stock, Surplus, and Undivided Profits 3. Retained earnings 0 0 0 other N.C. tangible property 5. Add Lines 1th rough 4 136607 EU. Exception to Underpayment of Estimated Tax of treasury stock 4. Total leasehold improvements and 2. Appraised value of N.C. tangible property Tax Due or Refund 33. Franchise Tax Due or Overpayment 41 3. Total land and buildings located in N.C. 0 b. 2015 Estimated Tax 31 2. Total furniture, fixtures, and M & E located in N.C. Sch. E Annraised Value of N.C. Tanaible Prooertv 29. Payments and Credits a. Income Tax Extension 0 0 0 Total inventories located in N. C. -377682243 24. Contributions to N.C. Donees 25. Net Taxable Income Inventory valuation method 0 19. Nonapportionable Income Allocated to N.C. 20. Income Subject to N.C. Tax 0 Sch. D Investment in N.C. Tangible Property 0 25. Domestic production activities deduction 430387904 3144332827 26. Other deductions (Attach schedule) 27. Total Deductions 28. Taxable Income Per Federal Return Before NOL Line 9 plus (or minus) Line 10 12. Apportionment factor 13. Capital Stock, Surplus, and Undivided Profits 0 . 0000 % 0 and Special Deductions 29. Special Deductions 30. Federal Taxable Income -136797751 125698 -136923449 This page must be filed with this form. F5.00.01 NCCD4052 DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) CD-405 2015 Page 3 (44) Legal Name (First 1O Characters) DUKE ENERG 562155481 Federal Employer ID Number Sch. H Adjustments to Federal Taxable Income Additions a. Taxes based on net income 1a. b. Dividends paid by captive REITs 1 b. c. Contributions 1c. d. Royalties paid to related members 1d. e. Expenses attributable to income not taxed 1e. f. Domestic production activities deduction 1f. g. 0th er (Attach schedule) 1g. 2. Total Additions 3. Deductions 2. a. U.S. obligation interest (net of expenses) 3a. b. Other deductible dividends 3b. c. Dividends received from captive REITs 3c. d. Royalties received from related members 3d. e. Interest on deposits with FH LB (net of expenses) S&L's only 3e. f. Bonus depreciation 3f. g. Section 179 expense deduction 3g. 0th er (Attach schedule) 3h 4. Total Deductions 4. 5. Adjustments to Federal Taxable Income 5. 703574 0 5549544 0 0 0 657196505 663449623 2459876 0 0 0 0 941755535 0 2 9652 635 973868046 -310418423 Sch. I Contributions Contributions to Donees Outside N.C. 2. a. Total contributions to donees outside N.C. 1a. b. Multiply Schedule B, Line 12 by 5%, if Line 12 is greater th an zero. 0th erwise enter zero. 1 b. c. Amount Deductible 1c. 0 0 0 Contributions to N.C. Donees a. Total contributions to N.C. donees other than those listed in Line 2d 2a. b. Multiply Sch B, Line 23 by 5%, if Line 23 is greater th an zero. 0th erw ise enter zero. 2b. c. Enter the lesser of Line 2a or 2b 2c. d. Total contributions to the State of N.C. and its political subdivisions 2d. e. Amount Deductible 2e. 0 0 0 0 0 Other Information - All Taxpayers Must Complete this Schedule a. State of incorporation b. Dateincorporated 2. Date of N.C. Certificate of Authority 3. a. Regular or principal trade or business in N.C. 4. Principal place business is directed or managed b. Regular or principal trade or business everywhere 5. WhatwasthelastyearthelRS redetermined NC 08 19 99 8. Is th is corporation subject to franchise tax but not N.C. income tax because the corporation's income tax activities are protected under P.L. 86- 272? (If yes, attach explanation) ELECTRIC U ELECTRIC U 9. Off ice rs' names and addresses: President Vice- President the corporation's federal tax ab le income? 6. a. Were adjustments reported to N.C.? Secretary b. If so, when? 7. Does th is corporation finance or discount its receivables Treasurer th rough a related or an affiliated company? Explanation of Changes for Amended Return: This page must be filed with this form. F5.00.01 NCCD4053 DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) CD-405 2015 Page 4 (44) Legal Name (First 1O Characters) Sch. L DUKE ENERG Balance Sheet per Books Beginning of Tax Year Assets I (a) End of Tax Year (d) (c) (b) 7808716 1. Cash 2. a. Trade notes and accounts receivable 743242714 8479832 b. Less allowance for bad debts 3. Inventories 4. a. U.S. government obligations 5. Tax- exempt securities 6. Other current assets (Attach schedule) 7. Loans to shareholders 8. Mortgage and real estate loans a. Buildings and other depreciable assets 11. a. Depletable assets b. Less accumulated depreciation 24175945656 9015700596 13. a. Intangible assets (amortizable only) 0 0 0 667920280 382337852 0 0 0 0 2042005604 15160245060 27828658800 10135336219) 0 0 o) 14257113 0 0 b. Less accumulated amortization 14. Other assets (Attach schedule) 15. Total Assets 16. Accounts payable 17. Mortgages, notes, and bonds payable in less than 1 year 18. Other current liabilities (Attach schedule) 461615550 1088273782 0 0 0 0 0 b. Less accumulated depletion Land (net of any amortization) 467715501 6099951) 1707626737 Other investments (Attach schedule) 10. 12. 14069673 734762882 966400711 b. State and other obligations 9. 562155481 Federal Employer ID Number 17693322581 0 14634991 0 o) 0 0 3121072944 22380094443 3198188185 24894448218 601567394 944866255 607777315 589235991 2114 7 5254 607816703 Liabilities and Shareholders' Equity 19. Loans from shareholders 20. Mortgages, notes, and bonds payable in 1 year or more 21 Other liabilities (Attach schedule) 22. Capital stock: a. Preferred Stock 0 b. Common Stock 1854895563 23. Additional paid- in capital 24. Retained earnings - Appropriated (Attach schedule) 25. Retained earnings - Unappropriated 26. Adjustments to shareholders' equity (Attach schedule) 27. Less cost of treasury stock 28. Total Liabilities and Shareholders' Equity 0 0 5255520107 9103055546 6515918192 9911185629 0 0 1854895563 304481008 3849739 3704338592 -257076 0) 22380094443 0 2784376571 4225695 4270446440 -232257 0) 24894448218 Sch. M-1 Reconciliation of Income (Loss) per Books with Income per Return 1. Net income (loss) per books O 2. Federal income tax 3. Excess of capital losses over capital gains 0 0 4. Income subject to tax not recorded on books this year: 5. Expenses recorded on books this year 7. Income recorded on books this year not included on this return: Tax- exempt interest $ 0 0 0 not deducted on this return: a. Depreciation b. Charitable Contributions c. Travel and entertainment 6. $ $ $ Add Lines 1 through 5 0 8. Deductions on this return not charged against book income this year: 0 0 0 a. Depreciation b. Charitable Contributions $ $ 0 0 0 0 0 9. Add Lines 7 and 8 0 10. Income 0 0 0 This page must be filed with this form. F5.00.01 NCCD4054 DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) CD-405 2015 Page 5 (44) DUKE ENERG Legal Name (First 1O Characters) 562155481 Federal Employer ID Number Sch. M-2 Retained Earnings Analysis 0 0 Balance at beginning of year 2. Net income (loss) per books 3. 0th er increases: 5. Distributions: a. Cash b. Stock c. Property 0 0 0 0 0 0 6. Other decreases: 4. 0 0 Add Lines 1, 2, and 3 Gross Amounts 7. Add Lines 5 and 6 8. Balance at End of Year Related Expenses Net Amounts Net Amounts Allocated Directly to N.C. 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Nonapportionable Income 2. 0 0 0 0 0 0 Nonapportionable Income Allocated to N.C. Explanation of why income listed is nonapportionab le income rather th an apportionab le income: Sch. 0 Computation of Apportionment Factor 0.0000 % Part 1. Domestic and Other Corporations Not Apportioning Franchise or Income Outside N.C. Part 2. Corporations Apportioning Franchise or Income to N.C. and to Other States I I Land 2. Build in gs 3. Inventories 4. 0th er property 5. Total 6. Average value of property 7. Rented Property 8. Property Factor 9. Gross Payroll 10. Compensation of general executive officers 11 Payroll Factor 12. Sales Factor I I 1. With in North Carolina (a) Beginning Period (b) Ending Period 0 0 0 0 0 0 0 0 0 0 0 4476913505 0 0 0 0 0 2. Total Everywhere (a) Beginning Period (b) Ending Period 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Factor 0.0000 % 0.0000 84.4281 0.0000 0.0000 0.0000 84.4281 0.0000 5302637239 13. Sales Factor 14. Total of Factors 15. N.C. Apportionment Factor Part 3. Corporations Apportioning Franchise or Income to N.C. and to Other States Using Single Sales Factor Part 4. Special Apportionment % % % % % % % This page must be filed with this form. F5.00.01 NCCD4055 DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) 31-Mar-2017 09:16:51 2015 NORTH CAROLINA FORM CD-405 Duke Energy Progress, LLC 56-2155481 Year: 2015 STATEMENT 1 CD-405, Pl'>-8E 3, SCHEDULE H,LINE 1G OTHER ADDITIONS LINE lG: OTHER ADDITIONS TAX EXEMPT INTEREST EXCLUDING NC 3,661,820 BONUS DEPRECIATION Addback for add'l first-year depr 620, 711, 931 OTHER MISCELLANEOUS ADDITIONS OTHER ADDITIONS TOTAL Page 14 32,822,754 657' 196, 505 Set [1/1] STATEMENT 1 DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) 31-Mar-2017 09:16:51 2015 NORTH CAROLINA FORM CD-405 Duke Energy Progress, LLC 56-2155481 Year: 2015 STATEMENT 2 CD-405, PAGE 3, SCH H , LINE 3H OTHER DEDUCTIONS LINE 3H: OTHER DEDUCTIONS EXP NOT DEDUCTED ON FED RETURN DUE TO TAX CREDIT 28,130,573 OTHER MISCELLANEOUS DEDUCTIONS SECTION 481 A ADJ TOTAL Page 15 1,522,062 29,652,635 Set [1/1] STATEMENT 2 DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) 31-Mar-2017 09:16:52 2015 NORTH CAROLINA FORM CD-405 Duke Energy Progress, LLC 56-2155481 Year: 2015 STATEMENT 3 CD-405, Pl'>-8E 4, SCHEDULE L, LINE 6 OTHER CURRENT 1~ssETS LINE 6: OTHER CURRENT ASSETS OTHER CURRENT ASSETS- BEGINNING OF YEAR REGULATORY ASSET 149,369,874 REGULATORY ASSET - RECEIVABLE 137' 945, 409 OTHER CURRENT ASSETS OTHER PREPAID EXPENSES MARK TO MARKET - CURRENT 529,800 3,251,430 I 4, 922 I NET DEFERRED TAX ASSET 105,343,745 FEDERAL INCOME TAX RECEIVABLE 271,033,436 STATE INCOME TAX RECEIVABLE TOTAL 451,508 667' 920, 280 OTHER CURRENT ASSETS- END OF YEAR REGULATORY ASSET REGULATORY ASSET - RECEIVABLE OTHER CURRENT ASSETS OTHER PREPAID EXPENSES MARK TO MARKET - CURRENT FEDERAL INCOME TAX RECEIVABLE STATE INCOME TAX RECEIVABLE TOTAL Page 16 171,524,996 92,697,821 632,165 4,530,360 1,686,658 97,816,643 13,449,209 382,337,852 Set [1/1] STATEMENT 3 DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) 31-Mar-2017 09:16:52 2015 NORTH CAROLINA FORM CD-405 Duke Energy Progress, LLC 56-2155481 Year: 2015 STATEMENT 4 CD-405, Pl'>-8E 4, SCHEDULE L, LINE 9 OTHEP.. nrvESTl1ENTS LINE 9: OTHER INVESTMENTS OTHER INVESTMENTS- BEGINNING OF YEAR INVESTMENTS IN UNCONSOL AFFILIATES 708,571 INVESTMENTS IN SUBSIDIARIES 6,375,443 DECOMMISSIONING TRUST FUNDS 1,700,542,723 1,707,626,737 TOTAL OTHER INVESTMENTS- END OF YEAR INVESTMENTS IN UNCONSOL AFFILIATES INVESTMENTS IN SUBSIDIARIES DECOMMISSIONING TRUST FUNDS TOTAL Page 17 271,551 6,930,081 2, 034, 803, 972 2,042,005,604 Set [1/1] STATEMENT 4 DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) 31-Mar-2017 09:16:52 2015 NORTH CAROLINA FORM CD-405 Duke Energy Progress, LLC 56-2155481 Year: 2015 STATEMENT 5 CD-405, Pl'>-8E 4, SCHEDULE L,LINE 14 OTHER 1~ssETS LINE 14: OTHER ASSETS OTHER ASSETS- BEGINNING OF YEAR CLEARING - OTHER NON-AMORTIZABLE INTANGIBLE ASSETS DEFERRED CHARGES RETIREMENT PLAN PREFUNDING L.T. Tax Receivable UNAMORTIZED DEBT EXPENSES UNAMORT LOSS ON REAACQUIRED DEBT OTHER ASSETS 916 71,871,639 48,251,872 137,107,214 182,434 33, 936, 881 7,717,121 155,183,490 REGULATORY ASSET 1,740,038,317 REGULATORY TAX ASSET 141,098,082 Regulatory Asset - Pension 353,687,120 ARO REGULATORY ASSET TOTAL 431,997,858 3, 121, 072, 944 OTHER ASSETS- END OF YEAR CLEARING - OTHER NON-AMORTIZABLE INTANGIBLE ASSETS DEFERRED CHARGES RETIREMENT PLAN PREFUNDING L.T. Tax Receivable 6,858 82,444,163 61,321,107 144,271, 965 36,758,034 UNAMORTIZED DEBT EXPENSES 2,716,026 UNAMORT LOSS ON REAACQUIRED DEBT 6,643,821 OTHER ASSETS 160,567,498 REGULATORY ASSET 735,130,898 REGULATORY TAX ASSET 106,130,883 Regulatory Asset - Pension ARO REGULATORY ASSET TOTAL Page 18 365, 991, 404 1,496,205,528 3,198,188,185 Set [1/1] STATEMENT 5 DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) 31-Mar-2017 09:16:53 2015 NORTH CAROLINA FORM CD-405 Duke Energy Progress, LLC 56-2155481 Year: 2015 STATEMENT 6 CD-405, Pl'>-8E 4, SCHEDULE L, LN 18 OTREP.. CUFRENT LIABILITIES LINE 18: OTHER CURRENT LIABILITIES OTHER CURRENT LIABILITIES- BEGINNING OF YEAR OTHER CURRENT LIABILITIES 25, 640, 920 OTHER CURRENT LIAB - PENSION 20,234,082 ACCRUED PAYROLL 126,519,150 MARK TO MARKET - CURRENT 108, 282, 958 FEDERAL INCOME TAX PAYABLE STATE INCOME TAX PAYABLE SALES TAX PAYABLE ACCRUED PROPERTY TAX TAXES - OTHER ACCRUED INTEREST ACCRUED FRANCHISE TAXES 16,211,592 4,577,782 15,732,822 315,385 (117,042) 81,265,706 376,532 OTHER RESERVES 892,000 ACCRUED LIABILITIES 307,707 ACCRUED SEVERANCE ACCRUED COMMISSIONS CUSTOMER DEPOSITS OTHER REGULATORY LIABILITY 1,600,070 19,829,198 114,704,716 71,403,737 607,777,315 TOTAL OTHER CURRENT LIABILITIES- END OF YEAR OTHER CURRENT LIABILITIES 44,891,716 OTHER CURRENT LIAB - PENSION 20,135,420 ACCRUED PAYROLL MARK TO MARKET - CURRENT 113,700,753 76,283,743 FEDERAL INCOME TAX PAYABLE (167,505) SALES TAX PAYABLE 9,681,727 TAXES - OTHER ACCRUED INTEREST (107,692) 95,571,203 OTHER RESERVES 647,000 ACCRUED LIABILITIES 312,117 ACCRUED SEVERANCE 20,117,452 CUSTOMER DEPOSITS 141,366,080 OTHER REGULATORY LIABILITY TOTAL Page 19 85,384,689 607,816,703 Set [1/1] STATEMENT 6 DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) 31-Mar-2017 09:16:53 2015 NORTH CAROLINA FORM CD-405 Duke Energy Progress, LLC 56-2155481 Year: 2015 STATEMENT 7 CD-405, Pl'>-8E 4, SCHEDULE L,LINE 21 OTHEP.. LIABILITIES LINE 21: OTHER LIABILITIES OTHER LIABILITIES- BEGINNING OF YEAR ARO - Regulatory Liability Deferred Investment Tax Credits FED DEFERRED INC TAXES - NONCURRENT DEFERRED STATE INCOME TAXES ACCRUED DEFERRED INCOME TAXES MARK TO MARKET - NONCURRENT Other Def. Credits - Pension OTHER DEF CREDITS - ARO OTHER DEFERRED CREDITS DEF. CREDIT - PENSION OTHER LIABILITIES RESERVE - INJURIES & DAMAGE DEFERRED COMPENSATION TOTAL 1,099,727,389 78,826,366 (16,331,474) (3,227,830) 2,927,414,580 22,466,003 290,031,400 3, 904, 712,129 58,202,695 61,015,435 (22,445,864) 5,568,209 697' 096, 508 9,103,055,546 OTHER LIABILITIES- END OF YEAR ARO - Regulatory Liability Deferred Investment Tax Credits ACCRUED DEFERRED INCOME TAXES MARK TO MARKET - NONCURRENT Other Def. Credits - Pension OTHER DEF CREDITS - ARO 1,144,787,321 131,604,359 3,027,491,083 19, 839, 906 261,704,866 4,567,093,298 OTHER DEFERRED CREDITS 18, 049, 996 DEF. CREDIT - PENSION 25,124,057 OTHER LIABILITIES 2,559,344 RESERVE - INJURIES & DAMAGE 5,307,466 DEFERRED COMPENSATION TOTAL Page 20 707' 623, 933 9, 911, 185, 629 Set [1/1] STATEMENT 7 DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) 31-Mar-2017 09:16:54 2015 NORTH CAROLINA FORM CD-405 Duke Energy Progress, LLC 56-2155481 Year: 2015 STATEMENT 8 CD-405, PAGE 4, SCHEDULE L, LN 24 RETl,INED E,,_.RNINGS APPROPRIATED LINE 24: RETAINED EARNINGS APPROPRIATED RETAINED EARNINGS APPROPRIATED- BEG. OF YEAR RETAINED EARNINGS--APPROPRIATED 3,849,739 RETAINED EARNINGS APPROPRIATED- END OF YEAR RETAINED EARNINGS--APPROPRIATED Page 21 Set [1/1] 4,225,695 STATEMENT 8 DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) 31-Mar-2017 09:16:54 2015 NORTH CAROLINA FORM CD-405 Duke Energy Progress, LLC 56-2155481 Year: 2015 STATEMENT 9 CD-405, PAGE 4, SCHEDULE L, LN 26 ADJUST. TO STOCKHOLDEP..S' EQUITY LINE 26: ADJUST. TO STOCKHOLDERS' EQUITY ADJUSTMENTS TO STOCKHOLDERS' EQUITY- BEG. OF YEAR OTHER COMPREHENSIVE INCOME (257,076) ADJUSTMENTS TO STOCKHOLDERS' EQUITY- END OF YEAR OTHER COMPREHENSIVE INCOME Page 22 Set [1/1] (232,257) STATEMENT 9 DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) 31-Mar-2017 09:16:54 2015 NORTH CAROLINA FORM CD-405 Duke Energy Progress, LLC 56-2155481 Year: 2015 STATEMENT 10 CD-405, PAGE 5, SCHEDULE 0 SP...LES FACTOR SCHEDULE 0: SALES FACTOR WITHIN NORTH CAROLINA SALES (DESTINATION) TOTAL 4,476,913,505 4,476,913,505 TOTAL EVERYWHERE SALES (DESTINATION) TOTAL Page 23 5,302,637,239 5,302,637,239 Set [1/1] STATEMENT 10 DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) 31-Mar-2017 09:16:55 2015 NORTH CAROLINA FORM CD-405 Duke Energy Progress, LLC 56-2155481 Year: 2015 STATEMENT 11 CD-405, PAGE 2, SCHEDULE G, LN 2 COST OF GOODS SOLD LINE 2: COST OF GOODS SOLD PURCHASED POWER COGS: OPERATING EXPENSE TRANSMISSION EXPENSES DISTRIBUTION EXPENSES FUELS USED IN ELEC PWR GENERATION TOTAL Page 24 430,562,658 477,903,496 15,166,425 42,050,854 1, 308, 910, 909 2,274,594,342 Set [1/1] STATEMENT 11 DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) 31-Mar-2017 09:16:55 2015 NORTH CAROLINA FORM CD-405 Duke Energy Progress, LLC 56-2155481 Year: 2015 STATEMENT 12 CD-405, PAGE 2, SCHEDULE G, LN 4 DIVIDENDS LINE 4: DIVIDENDS DOMESTIC CORPORATIONS - 70% 174,819 DOM CORP 70% - DOMESTIC PSHIP 4,132 DOM CORP 70% - OTHER FLOWTHRU 617 TOTAL Page 25 179,568 Set [1/1] STATEMENT 12 DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) 31-Mar-2017 09:16:55 2015 NORTH CAROLINA FORM CD-405 Duke Energy Progress, LLC 56-2155481 Year: 2015 STATEMENT 13 CD-405, PAGE 2, SCHEDULE G, LN 10 OTHER INCOHE LINE 10: OTHER INCOME MISCELLANEOUS OTHER INCOME SECTION 481A ADJUSTMENT INC (LOSS) FROM U.S. PSHIP OTHER INCOME FROM U.S. PSHIP OTHER INCOME FROM OTHER FLOW-THRU HEDGING TRANSACTIONS-OTHER TOTAL Page 26 4,383,716 20, 915, 452 825,321 828 4 92 (14,694,878) 11, 430, 931 Set [1/1] STATEMENT 13 DUKE ENERGY PROGRESS, LLC Item No 13(a)(8) 31-Mar-2017 09:16:56 2015 NORTH CAROLINA FORM CD-405 Duke Energy Progress, LLC 56-2155481 Year: 2015 STATEMENT 14 CD-405, PAGE 2, SCHEDULE G, LN 26 OTHER DEDUCTIONS LINE 26: OTHER DEDUCTIONS GENERAL AND ADMIN EXPENSES 37,470,930 OFFICE SUPPLIES 26,460,075 MEALS & ENTERTAINMENT 6, 282, 915 EXP REG DEF FOR BK NOT TAX 83,837,761 INJURIES AND DAMAGES 17,712,961 INSURANCE 17,715,641 SELF DEVELOPED SOFTWARE 14,088,739 MISCELLANEOUS DEDUCTIONS 10,833,889 RESEARCH & DEVELOPMENT CIVIC & POLITICAL ENVIRONMENTAL CLEANUP EXPENSE 1,409,715 735,809 78,030,470 OUTSIDE SERVICES 61,478,095 DECOMMISIONING & DISMANTLEMENT EXP 13,063,762 SEC 48l(A) ADJUSTMENTS 10,064,984 SECTION 174 R&E DEDUCTION 41,750,979 OTHER EXPENSE FROM U.S. PSHIP OTHER EXPENSE FROM OTHER FLOW-THRU OTHER AMORTIZATION - PRIOR YEAR OTHER AMORTIZATION - CURRENT YEAR TOTAL Page 27 18,476 403,556 8,897,545 131,602 430, 387' 904 Set [1/1] STATEMENT 14 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub XXXX NCUC Form E-1 Data Request For the test year ended December 31, 2016 Item No. 13(a)(9) Pursuant to N.C.G.S ?105-116, Duke Energy Progress paid the higher of the North Carolina utility franchise tax which was paid on a quarterly basis or the North Carolina general business franchise tax which was paid on an annual basis. N.C.G.S ?105-116 was repealed by H.B. 998 effective July 1, 2014, and therefore Duke Energy Progress now pays the general franchise tax on an annual basis. The most recently filed general franchise tax return is attached. Due to its status as an LLC, Duke Energy Progress files as part of the Progress Energy, Inc. North Carolina franchise tax return. A separate pro-form a version of the LLC return for Duke Energy Progress, LLC is attached, but note that the summary tax credits form is listed under the name of the filing entity, which is Progress Energy, Inc. All credits on the return originate from Duke Energy Progress, LLC. DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub XXXX NCUC Form E-1 Data Request For the test year ended December 31, 2016 Item No. 13(a)(9) 2015 Summary of Tax Credits limited to 50?/o of Tax NC- 478 (44) North Carolina Department of Revenue 10 28 15 F:::r '.>:.:':''''cla . . year 201 :,. o: _ooooooooo ':::.:.:'.:''-~' '::.... , ____ ., __ 1 __ :, .-. ~ 1S--.;,,nd end111-_:: .L .." .. ~...... :'.. _____ .~_._,_ \.... }f._:::r ,::.lher .,:-.::.::r :':'.'_irt::.>q ::':'. _____ ,..-.:.:__! _:': _.':' .. ~.-:'. ._ .... L::. _: ._: _______-__ ,':': ..... ' ,_.': ::'.. _.,: _1_ :: ooooooo ;_:_::_-.:_ :, _. :' .-. _1_ ooooo'.'' . , .:,,,._ ,,-,, : .,: :>.:, .. .,.,.". .:::::. 1_oo'' :: :: oo :.:: .-: o :-::'....................., _._. Yo':: So::.:a: S:>:<::.::.:ty N:::mber Federal Erm:::o.::>:-' ID N:.::mb::..: 'LJ(: ::.. -. ..: . :.:- : :. :.: .._ ..... ': ,o .::- :.;. :. ~ - : .:. t.;: o' -~. : .... ..; ,.., ... ;..; .... 15 :: o' ::~- .> . :- ::: / ., f:: ...:.- .: ..o :_. ..:,:,.:.. '.! c :.a::: :,_.: ) ' . ... E. 6 9 '..-' 9 ----o ':. :, .: :~. 1 4 4 :. 'o 0 1 7 ... . :) ..:.. .:. .:: :_;' ... ..:.; ...... : ..:i..............z !!!'!!.-.-.-.-.-.-.-.-.-.-.-.-. 0 ..... (': '. : .~. 0 .. .... .:... .:-:: .:. .-....: .._; :,_;: ... .'.'..:::::/:. N N ... .. :. ; : .; : :..: .:. N N ;., .. 7: ... 64 ''.-' . .i .:. .o.. 'i :o: .'., Page 2 must ba f:lod with tho f'rst p;ige of this form . .: NC478P01 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub XXXX NCUC Form E-1 Data Request For the test year ended December 31, 2016 Item No. 13(a)(9) No~me 2015 NC- 478 Page 2 144) Part 1. Fr::in<:h!so TaK Crodlts Subjoct lo ::::0% Creamig Jobs 1F (Fint 10 Ctnrac'er.<: Artide JA lAF B /lrt1rJn 3J !BF A_ 2F lnvest:ng in M & E 3F Research and Dm1elopment (Art:cJe 3.A) 4F NC Research and Oe:;:e:ap111 :: r:..: ."':.:" (:.~~H BF 9F. !OF 11F !2F 13F 14F ''R0(:GBPU'.Sc; E: SSNorFEIN 562155481 p,;,rt 1. lneom~ L:x Cradlts Subjoct lo 50% of Tax llmlt 11 Creating Job~. A Article 3A 1AI. o B. Article 3J 1Bl. o 21 hweM1n~1 in M .;~ E 21. o 31, 31 Reffarch and Oevelopmen! (Alt:cle 3A) fl 41 NC Research and D0111elopmen1 41. 0 '.':I lnve,.l-:ng 1n Centml Ottice or Alrcratt Fac1h!y Prop 51. 0 6t Jn111~,.ting m Business Propert~. {Arl1cle 3J) 61. 0 .,., !n ...H.Wng :.: Renewable Energy Prnpe11y n n or f.,:,x Lk:.:lt .:!I Lo'".' In:. ~'me Hous1nfJ 9F ::' !OF ,_: 101 R:mewable Fuel Fac1!1ty HF :.: 1::J' i:: I 11 121 1'.:! 141 151 161 171 1+ 14F l:'..P' 16F 17F Work Opportunely Com.truc!:ng a Ra1lroali lnterrnodal Facility lnve~:t1ng :n Real Property B1od1esel Producers Donate Funds !o Nonprofit Orgar11zal1on Remiwable Energy Property Facil!ty lnte;;ict:ve D1g1tai Media 19F 20F Amount ol :-'rancl1:-,.:,, Tii.~ 21F 19F 22F lir10 ''CJ 01.::(_:.: L'"' Mul11ply line 22 by 50%: 24F Lesse" ol Line 19 or Line 23 i I IJu! ':QI:~-:' rt',,,, t<>>> . ". ::,-;..:.:. . . ;~1F ):<'F ::.:. .T. 24f' :m1:~: 0 t.Jr Exp:_:..:. ..'.:.::a-:..;. . ~ 0 :'.) HlJ. 0 191. 0 211 Income Tax Crecll!s Not S1.1b1ect to 50% Lionlt 201. 211. 0 0 221 '. . :.ii~:.:.: ill~mni. L.nf! .~~ 1 221. Certific-~~.don ~ .=~:~il.f} 151. 16!. 191 T..:! ;~l =.~1.:.:mt" T a:i :~.r.~.: it~ Sub~~t8 80 50% l ~m1i D~ie ~no1: n~}I h:u Hl~f! iol"ro ll 231, 241 Lesser of Line 19 or Line 23 241 Part 3. Amount of t<:;ieh lncomo TA 25AI. B Art1r:re :u 25BI 251. lnvest:.ng in M & E 261 271 Rosearch and De>:elopment (Arl:cle 3A) 271 281 N.C. Rese.irch .c;nd Oevelopmer:t 281 :} l_l 36J Eliod1esel Produce;-,. 381 (.: 391 Donate F\mds lo Nonpmfil Orgc:n,<.<1l:on 391 (' 401 Re:iev11able En=i:rcJV Pmper1y Facil'!\I 401 :.:. ::m. !) lnvest1r~g ir1 Re;,: Property 0 (: 411 0 0 .J (: 371 {:: 1. . . . . :::..:.r:::. r.--.1.~;~,.:~: ~.~._:w1.at lnY~_,f C;c.ihr'.!:r:p:.::.t C.1Q for :::.cpart-:.;.u~~::. : -:;:i~.:,:-: -.~..;~::-:-..:..;-::::'..:,::,ill..:.::,:.-:..: ::(.:.~ d)~F'"~: ,,, j~: .~ :-$"..'. 4 :;~: : ~~; ~-:...- ~:.1 .~. :~;:....::.:-:~I 11.~.,.. ''~)~.:w:.~,~~~1: -:-.::-;.....;-~-~ .:3 ~.~ ;: () 291 Investing on Centr.:>I Oftke or Aircraft Fac1li1y Prop 291 301 311. ln11est:ng In Renewable Energy PmpaW 311 321. Low- lncom:~ Housing 321 331 Technology Cornrnercial12at1on 331. 341. Renewable Fu:1; Facility 341 351 Work Opportun,ty 351 361. Constrnc1:ng a Ra,:road lr11ermtJdai Fm::il1iy 361 301. lrwestmg :n Bu>>:ne.ss Property {Ar11cJe :JJ) f:: ; : : ~-= :\_1 "/ ~...~ .::.; : ~ :::;.i..:rin.:::r .:.:. ,, tl I) 171, ?01 Amount of ln(;Of!H Tax 1_; C'''':::ti: :g J')b:;. A Af1":,:,,, '.if\ :c~.AF B Af11cle :;J 2:':BF 26F lnV<:JSl:ng 1n M <<; .:=: :,::;_iF 27F Re:'~'-'.'.:ch and Development ::Af1:::.le 3AJ :!?F 2:>' N.C RBsearch and Oe11elopmcml :.::'!.F 29F Investing in C-:::1tr:::: Office or Am:::-aft fii:::1lity Prop ::9F 30F ln11e::;t::19 :n Bu:c::nes:, Property (Art::-:le 'JJ) '..\OF 31F lnve=:;l:w; 111 Renew;;ble iinergy Property '.l1F 32F Low- lnco:::oe Hou:>:ng :_;2F 33F Technology Comme:ci;;IJza!K::n :_;3;: 34F Renewable Fuel Fac!l:ty 34F 35F Work Op;:c:ort!.lrnly '.i 'iF 36F Com;!ruc!:ng a Rm:road lntermodal Fa~:1l1ty :~.:::.F 3?'F lnvern:n;; in Real Property :~ :'F ::k-F B:odH;;:;: Produce::; :<<''' Tax Cmd1li.. Sut;;eci to :'}0 : o! lax L:m :. 1-.-------. '..:. ~: f.:.,. :_:::i:p.,:,::'. L_:) .~.(.==,=.~--~::I.-.:= :.....~=1 4?r C:,:~ !21, 131, 141, ::!:;1 Multiply line 22 by 50% Part 3. Amount of E.:ieh Fram.-:hii;';. Tm11 Credit Takon In ?'.3F () Part 2, Computat::on of 60% !ncomo Tax Limit ?Of Dlfl 23F . . .. . ..: :: : : 1.. -: ~ Tax !.im1t F1.a11ih-:.:~-~=. L::.\ Crt;tn(kt4pecember 31, 2016 Legal Name (First 1O Characters) Item No. 13(a)(9) DUKE ENERG 562155481 Federal Employer ID Number Sch. H Adjustments to Federal Taxable Income Additions a. Taxes based on net income 1a. b. Dividends paid by captive REITs 1 b. c. Contributions 1c. d. Royalties paid to related members 1d. e. Expenses attributable to income not taxed 1e. f. Domestic production activities deduction 1f. g. 0th er (Attach schedule) 1g. 2. Total Additions 3. Deductions 2. a. U.S. obligation interest (net of expenses) 3a. b. Other deductible dividends 3b. c. Dividends received from captive REITs 3c. d. Royalties received from related members 3d. e. Interest on deposits with FH LB (net of expenses) S&L's only 3e. f. Bonus depreciation 3f. g. Section 179 expense deduction 3g. 0th er (Attach schedule) 3h 4. Total Deductions 4. 5. Adjustments to Federal Taxable Income 5. 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Sch. I Contributions Contributions to Donees Outside N.C. 2. a. Total contributions to donees outside N.C. 1a. b. Multiply Schedule B, Line 12 by 5%, if Line 12 is greater th an zero. 0th erwise enter zero. 1 b. c. Amount Deductible 1c. 0 0 0 Contributions to N.C. Donees a. Total contributions to N.C. donees other than those listed in Line 2d 2a. b. Multiply Sch B, Line 23 by 5%, if Line 23 is greater th an zero. 0th erw ise enter zero. 2b. c. Enter the lesser of Line 2a or 2b 2c. d. Total contributions to the State of N.C. and its political subdivisions 2d. e. Amount Deductible 2e. 0 0 0 0 0 Other Information - All Taxpayers Must Complete this Schedule a. State of incorporation b. Dateincorporated 2. Date of N.C. Certificate of Authority 3. a. Regular or principal trade or business in N.C. 4. Principal place business is directed or managed b. Regular or principal trade or business everywhere 5. WhatwasthelastyearthelRS redetermined NC 08 19 99 8. Is th is corporation subject to franchise tax but not N.C. income tax because the corporation's income tax activities are protected under P.L. 86- 272? (If yes, attach explanation) ELECTRIC U ELECTRIC U 9. Off ice rs' names and addresses: President Vice- President the corporation's federal tax ab le income? 6. a. Were adjustments reported to N.C.? Secretary b. If so, when? 7. Does th is corporation finance or discount its receivables Treasurer th rough a related or an affiliated company? Explanation of Changes for Amended Return: This page must be filed with this form. F5.00.01 NCCD4053 CD- 405 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub XXXX NCUC Form E-1 Data Request 2G~5e ~a4e144)December 31, 2016 Legal Name (First 10 Characters) Sch. L Item No. 13(a)(9) DUKE ENERG Balance Sheet per Books Beginning of Tax Year Assets 1. Cash 2. a. Trade notes and accounts receivable I (a) End of Tax Year (d) (c) (b) 14069673 0 0 0 b. Less allowance for bad debts 3. Inventories 4. a. U.S. government obligations 5. Tax- exempt securities 6. Other current assets (Attach schedule) 7. Loans to shareholders 8. Mortgage and real estate loans Other investments (Attach schedule) 10. a. Buildings and other depreciable assets 11. a. Depletable assets 0 0 0 0 b. Less accumulated depreciation b. Less accumulated depletion 12. Land (net of any amortization) 13. a. Intangible assets (amortizable only) 0 14. Other assets (Attach schedule) 15. Total Assets 16. Accounts payable 17. Mortgages, notes, and bonds payable in less than 1 year 18. Other current liabilities (Attach schedule) 461615550 1088273782 0 0 0 382337852 0 0 2042005604 27828658800 10135336219) 17693322581 0 o) 0 0 0 0 b. Less accumulated amortization 467715501 6099951) 0 0 0 0 0 0 0 0 0 b. State and other obligations 9. 562155481 Federal Employer ID Number 0 14634991 0 o) 0 0 0 0 3198188185 24894448218 Liabilities and Shareholders' Equity 19. Loans from shareholders 20. Mortgages, notes, and bonds payable in 1 year or more 21 Other liabilities (Attach schedule) 22. Capital stock: a. Preferred Stock b. Common Stock 0 0 25. Retained earnings - Unappropriated 26. Adjustments to shareholders' equity (Attach schedule) 0 0 0 0 0 27. Less cost of treasury stock 0) 28. Total Liabilities and Shareholders' Equity 0 23. Additional paid- in capital 24. Retained earnings - Appropriated (Attach schedule) 589235991 2114 7 5254 607816703 0 0 0 0 0 0 0 6515918192 9911185629 0 0 0 2784376571 4225695 4270446440 -232257 0) 24894448218 Sch. M-1 Reconciliation of Income (Loss) per Books with Income per Return 1. Net income (loss) per books 2. Federal income tax 3. Excess of capital losses over capital gains 4. Income subject to tax not recorded on books this year: 5. Expenses recorded on books this year 2 3 5 9 O5 5 8 4 112464296 0 7. Income recorded on books this year not included on this return: Tax- exempt interest $ 0 6 9 7 O8 2 3 -64746854 not deducted on this return: a. Depreciation b. Charitable Contributions c. Travel and entertainment 6. $ 243920032 $ 0 $ 1046361 Add Lines 1 through 5 6970823 8. Deductions on this return not charged against book income this year: a. Depreciation b. Charitable Contributions $ 563338209 $ 0 112527104 78395199 3 2 3 3 615 9 2 9. Add Lines 7 and 8 606984618 10. Income 675865313 682836136 -75851518 This page must be filed with this form. F5.00.01 NCCD4054 CD- 405 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub XXXX NCUC Form E-1 Data Request 21lilr5hP~diir {4~d December 31, 2016 Item No. 13(a)(9) DUKE ENERG Legal Name (First 10 Characters) 562155481 Federal Employer ID Number Sch. M-2 Retained Earnings Analysis 0 235905584 Balance at beginning of year 2. Net income (loss) per books 3. 0th er increases: 5. Distributions: a. Cash b. Stock C. Property 0 0 0 375959 375959 4270446440 6. Other decreases: 4. 4034916815 4270822399 Add Lines 1, 2, and 3 Gross Amounts 7. Add Lines 5 and 6 8. Balance at End of Year Related Expenses Net Amounts Net Amounts Allocated Directly to N.C. 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Nonapportionable Income 2. 0 0 0 0 0 0 Nonapportionable Income Allocated to N.C. Explanation of why income listed is nonapportionab le income rather th an apportionab le income: Sch. 0 Computation of Apportionment Factor 0.0000 % Part 1. Domestic and Other Corporations Not Apportioning Franchise or Income Outside N.C. Part 2. Corporations Apportioning Franchise or Income to N.C. and to Other States I I 1 Land 2. Build in gs 3. Inventories 4. 0th er property 5. Total 6. Average value of property 7. Rented Property 8. Property Factor 9. Gross Payroll 10. Compensation of general executive officers 11 Payroll Factor 12. Sales Factor I I 1. With in North Carolina (a) Beginning Period (b) Ending Period 0 0 0 0 0 0 0 771930358 24060475859 24832406217 12416203109 98487864 12514690973 191624259 2. Total Everywhere (a) Beginning Period 0 0 1088273783 2 67 34 631119 27822904902 13911452451 Factor 106171680 14017624131 89.2783 % 234137733 0 0 191624259 1865472613 234137733 2209335648 13. Sales Factor 14. Total of Factors 15. N.C. Apportionment Factor Part 3. Corporations Apportioning Franchise or Income to N.C. and to Other States Using Single Sales Factor Part 4. Special Apportionment (b) Ending Period 0 0 0 0 0 81.8425 84.4359 84.4359 339.9926 84.9982 0.0000 0.0000 % % % % % % % This page must be filed with this form. F5.00.01 NCCD4055 DUKE ENERGY PROGRESS, LLC 'Name & a~ bl@nA'ol>>l1'il1!e~tuation NCUC Form E-1 Data Request For the test year ended December 31, 2016 Item No. 13(a)(9) CD-425 (44) 2015 Corporate Tax Credit Summary North Carolina Department of Revenue 10-30-15 Legal Name (First 1O Characters) DUKE ENERG Federal Employer ID Number 562155481 For Computer Use Only 01 0 12A 0 15B 02 0 12B 0 16 03 0 13A 0 N 13B 0 16 0 14A 0 17 0 22 0 04 RF N ER N AA 04 0 14B 0 09 0 15A 0 0 RF N CP N QB N ER N 1-P_a_rt_1_._F_ra_n_c_h_is_e_T_a_x_c_re_d_i_ts_N_ot_s_u_bj_e_c_t_to_5o_o_v._o_f_T_a_x_L_i_m_it_ _----t Part 3. Income Tax Credits Not Subject to 50% of Tax Limit 1. Short period credit for change in income year (S Corporations enter only the amount of tax credits attributable to o= __O x o = 1. o nonresidents filing composite on Lines 12 through 17.) 365 12. Rehabilitating an income- producing 365 2. Revitalizing an income- producing historic mill facility 3. O A. Enter qualified 3. 0 B. Enter credit amount 4. 0 Revitalizing a nonincome- producing historic mill facility 4. historic structure 2. rehabilitation expenditures 12a. Other franchise and tax credits not subject to 50% of tax limit D Investing in Recycling Facilities D Expenses Related to Dividends Total franchise tax credits not subject to 50% of tax limit 0 0 13a. 0 13b. 0 rehabilitation expenditures 14a. 14b. 0 0 15a. 0 15b. 0 13. Rehabilitating a 0Additional Annual Report Fee Paid 5. 12b. 5. 0 nonincome- producing 6 3 0 0 2 4 4 0 1 7 historic structure A. Enter rehabilitation expenses B. Enter installment amount of credit 14. Revitalizing an income- producing historic mill facility A. Enter qualified Part 2. Computation of Franchise Tax Credits Taken in 2015 6. Total franchise tax due 7. Nonrefundable franchise tax credits 8. Enter the lesser of Line 6 or 7 9. Total franchise tax credits subject 6. 15079282 7. 0 8. 0 B. Enter credit amount 15. Revitalizing a nonincome- producing historic mill facility to 50% of tax limit taken in 2015 9. 10. Refundable franchise tax credits 10. 11. Franchise Tax Credits Taken in 2015 11. 0 0 0 A. Enter rehabilitation expenses B. Enter installment amount of credit Submit this form directly after Form CD-405 or CD-401S. Attach separate schedule to substantiate any credit claimed. F5.00.01 NC425P01 CD- 425 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub XXXX NCUC Form E-1 Data Request tl?3lgeir2'~M)December 31, 2016 rz.Dc1" Legal Name (First 1O Characters) Item No. 13(a)(9) DUKE ENERG Federal Employer ID Number 562155481 16. Other income tax credits not subject to 50% of tax limit 16. 0 17. Income tax credits not subject to 50% of tax limit carried over from previous years 17. 18. Total income tax credits not subject to 50% of tax limit 18. 0 0 D D Investing in Recycling Facilities Qualified Business Investments D Cogeneration Plant D Expenses Related to Dividends Part 4. Computation of Income Tax Credits Taken in 2015 19. N.C. net income tax due 19. 20. Nonrefundable income tax credits 20. 21. Enter lesser of Line 19 or 20 21. 22. Total income tax credits subject to 50% of tax limit taken in 2015 22. 23. Add Lines 21 and 22 23. 24. Income tax credit adjustment (C Corporations only) 24. 25. Income Tax Credits Taken in 2015 25. Form CD-425 must be attached to the last page of Form CD-405 or CD-4015 if a tax credit is claimed. Failure to substantiate a tax credit may result in the disallowance of that credit. F5.00.01 NC425P02 0 0 0 0 0 0 0 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub XXXX NCUC Form E-1 Data Request For the test year ended December 31, 2016 Item No. 13(a)(9) 28-Mar-2017 09:35:09 2015 NORTH CAROLINA FORM CD-405 Duke Energy Progress, LLC 56-2155481 Year: 2015 STATEMENT 1 CD-405, Pl'>-8E 4, SCHEDULE L, LINE 6 OTHER CURRENT 1~ssETS LINE 6: OTHER CURRENT ASSETS OTHER CURRENT ASSETS- BEGINNING OF YEAR 0 OTHER CURRENT ASSETS- END OF YEAR REGULATORY ASSET REGULATORY ASSET - RECEIVABLE OTHER CURRENT ASSETS OTHER PREPAID EXPENSES MARK TO MARKET - CURRENT 171,524,996 92,697,821 632,165 4,530,360 1,686,658 FEDERAL INCOME TAX RECEIVABLE 97,816,643 STATE INCOME TAX RECEIVABLE 13,449,209 TOTAL Page 36 382,337,852 Set [1/1] STATEMENT 1 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub XXXX NCUC Form E-1 Data Request For the test year ended December 31, 2016 Item No. 13(a)(9) 28-Mar-2017 09:35:11 2015 NORTH CAROLINA FORM CD-405 Duke Energy Progress, LLC 56-2155481 Year: 2015 STATEMENT 2 CD-405, Pl'>-8E 4, SCHEDULE L, LINE 9 OTHEP.. nrvESTl1ENTS LINE 9: OTHER INVESTMENTS OTHER INVESTMENTS- BEGINNING OF YEAR 0 OTHER INVESTMENTS- END OF YEAR INVESTMENTS IN UNCONSOL AFFILIATES INVESTMENTS IN SUBSIDIARIES DECOMMISSIONING TRUST FUNDS TOTAL Page 37 271,551 6,930,081 2, 034, 803, 972 2,042,005,604 Set [1/1] STATEMENT 2 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub XXXX NCUC Form E-1 Data Request For the test year ended December 31, 2016 Item No. 13(a)(9) 28-Mar-2017 09:35:13 2015 NORTH CAROLINA FORM CD-405 Duke Energy Progress, LLC 56-2155481 Year: 2015 STATEMENT 3 CD-405, Pl'>-8E 4, SCHEDULE L,LINE 14 OTHER 1~ssETS LINE 14: OTHER ASSETS OTHER ASSETS- BEGINNING OF YEAR 0 OTHER ASSETS- END OF YEAR CLEARING - OTHER NON-AMORTIZABLE INTANGIBLE ASSETS DEFERRED CHARGES RETIREMENT PLAN PREFUNDING L.T. Tax Receivable 6,858 82,444,163 61,321,107 144,271, 965 36,758,034 UNAMORTIZED DEBT EXPENSES 2,716,026 UNAMORT LOSS ON REAACQUIRED DEBT 6,643,821 OTHER ASSETS 160,567,498 REGULATORY ASSET 735,130,898 REGULATORY TAX ASSET 106,130,883 Regulatory Asset - Pension ARO REGULATORY ASSET TOTAL Page 38 365, 991, 404 1,496,205,528 3,198,188,185 Set [1/1] STATEMENT 3 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub XXXX NCUC Form E-1 Data Request For the test year ended December 31, 2016 Item No. 13(a)(9) 28-Mar-2017 09:35:15 2015 NORTH CAROLINA FORM CD-405 Duke Energy Progress, LLC 56-2155481 Year: 2015 STATEMENT 4 CD-405, Pl'>-8E 4, SCHEDULE L, LN 18 OTREP.. CUFRENT LIABILITIES LINE 18: OTHER CURRENT LIABILITIES OTHER CURRENT LIABILITIES- BEGINNING OF YEAR 0 OTHER CURRENT LIABILITIES- END OF YEAR OTHER CURRENT LIABILITIES 44,891,716 OTHER CURRENT LIAB - PENSION 20,135,420 ACCRUED PAYROLL MARK TO MARKET - CURRENT 113,700,753 76,283,743 FEDERAL INCOME TAX PAYABLE (167,505) SALES TAX PAYABLE 9,681,727 TAXES - OTHER (107,692) ACCRUED INTEREST 95,571,203 OTHER RESERVES 647,000 ACCRUED LIABILITIES 312,117 ACCRUED SEVERANCE 20,117,452 CUSTOMER DEPOSITS 141,366,080 OTHER REGULATORY LIABILITY TOTAL Page 39 85,384,689 607,816,703 Set [1/1] STATEMENT 4 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub XXXX NCUC Form E-1 Data Request For the test year ended December 31, 2016 Item No. 13(a)(9) 28-Mar-2017 09:35:17 2015 NORTH CAROLINA FORM CD-405 Duke Energy Progress, LLC 56-2155481 Year: 2015 STATEMENT 5 CD-405, Pl'>-8E 4, SCHEDULE L,LINE 21 OTHEP.. LIABILITIES LINE 21: OTHER LIABILITIES OTHER LIABILITIES- BEGINNING OF YEAR 0 OTHER LIABILITIES- END OF YEAR ARO - Regulatory Liability Deferred Investment Tax Credits ACCRUED DEFERRED INCOME TAXES MARK TO MARKET - NONCURRENT Other Def. Credits - Pension OTHER DEF CREDITS - ARO 1,144,787,321 131,604,359 3,027,491,083 19, 839, 906 261,704,866 4,567,093,298 OTHER DEFERRED CREDITS 18, 049, 996 DEF. CREDIT - PENSION 25,124,057 OTHER LIABILITIES 2,559,344 RESERVE - INJURIES & DAMAGE 5,307,466 DEFERRED COMPENSATION TOTAL Page 40 707' 623, 933 9, 911, 185, 629 Set [1/1] STATEMENT 5 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub XXXX NCUC Form E-1 Data Request For the test year ended December 31, 2016 Item No. 13(a)(9) 28-Mar-2017 09:35:18 2015 NORTH CAROLINA FORM CD-405 Duke Energy Progress, LLC 56-2155481 Year: 2015 STATEMENT 6 CD-405, PAGE 4, SCHEDULE L, LN 24 RETl,INED E,,_.RNINGS APPROPRIATED LINE 24: RETAINED EARNINGS APPROPRIATED RETAINED EARNINGS APPROPRIATED- BEG. OF YEAR 0 RETAINED EARNINGS APPROPRIATED- END OF YEAR RETAINED EARNINGS--APPROPRIATED Page 41 Set [1/1] 4,225,695 STATEMENT 6 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub XXXX NCUC Form E-1 Data Request For the test year ended December 31, 2016 Item No. 13(a)(9) 28-Mar-2017 09:35:20 2015 NORTH CAROLINA FORM CD-405 Duke Energy Progress, LLC 56-2155481 Year: 2015 STATEMENT 7 CD-405, PAGE 4, SCHEDULE L, LN 26 ADJUST. TO STOCKHOLDEP..S' EQUITY LINE 26: ADJUST. TO STOCKHOLDERS' EQUITY ADJUSTMENTS TO STOCKHOLDERS' EQUITY- BEG. OF YEAR 0 ADJUSTMENTS TO STOCKHOLDERS' EQUITY- END OF YEAR OTHER COMPREHENSIVE INCOME Page 42 Set [1/1] (232,257) STATEMENT 7 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub XXXX NCUC Form E-1 Data Request For the test year ended December 31, 2016 Item No. 13(a)(9) 28-Mar-2017 09:35:22 2015 NORTH CAROLINA FORM CD-405 Duke Energy Progress, LLC 56-2155481 Year: 2015 STATEMENT 8 CD-405, Pl'>-8E 5, SCHEDULE 0 SP...LES FACTOR SCHEDULE 0: SALES FACTOR WITHIN NORTH CAROLINA SALES (DESTINATION) TOTAL 1,865,472,613 1,865,472,613 TOTAL EVERYWHERE SALES (DESTINATION) TOTAL Page 43 2,209,335,648 2,209,335,648 Set [1/1] STATEMENT 8 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub XXXX NCUC Form E-1 Data Request For the test year ended December 31, 2016 Item No. 13(a)(9) Enterprise Name Duke Energy Report Name Report Description 7Ll00SP 2015 NORTH CAROLINA FORM CD-405 2015 NORTH CAROLINA FORM CD-405 Date Refreshed Time Refreshed Date Printed Time Printed Case Number Tax Year Base Cale Constant Custom Cale Entity Entity Group Column File Alternate Column File Data Spec Range File Location Code From Row Thru Row Version Number User ID 3/28/2017 9:34 AM 3/28/2017 9:34 AM 1 2015 NC15 CONSTANl 7Ll00SP NC15 NC 1 99999 9146 GLSheph DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For the test year ended December 31, 2016 Item No.13b TAXES ACCRUED, PREPAID AND CHARGED DURING YEAR Kind of Tax (a) NORTH CAROLINA: Property Franchise Unemployment Municipal License Other Taxes Total North Carolina BOY BALANCE (DR)CR236 DR(CR) 165 Taxes Prepaid Accrued Taxes (b) (c) 17,090 (152,338) (135,248) - (DRJCR236 Taxes Charged During Year Operating (DR)CR236 Taxes Charged During Year Non-Operating (d) (e) 59,353,511 14,051,785 333,859 365,611 (330,429) 73,774,337 1,730,252 1,730,252 DR(CR) 236 Paid During Year (f) 58,946,028 6,265,270 337,595 365,611 (354,602) 65,559,902 (DRJCR236 Adjustments (g) (1,709,323) (7,578,297) (6,641) (24,173) (9,318,434) EOYBALANCE (DR)CR236 DR(CR) 165 Prepaid Taxes (Incl. in Taxes Accrued (Account 236) Account 165) (i) (h) 428,412 208,218 6,713 (152,338) 491,005 - DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For the test year ended December 31, 2016 2015 State Def Rate 2016StateDefRate Difference 4.0155% Item No. 13c ~ 0.8464% Federal Rate 35.0000% 6,033,190 83,911 8,486 (4,344,388) (7,370,070) 1,571,001,412 2,188,483,635 95,281,826 (91,316,090) 1,148,988 (5,005,582) (19,525) 2,350,515 49,382,780 315,385 20,117,452 44,564,900 585,346 18,737,812 3,045,851 3,326,829 58,299,756 6,335,979 647,000 152,200 77,954,348 27,132,165 (51,065) (710) (72) 36,771 62,380 (13,296,956) (18,523,325) (806,465) 772,899 (9,725) 42,367 Calculation of Deferred Tax Expense T11A18 T11806 T11808 T11817 T13808 T13845 T15A22 T15A23 T15A65 T15807 T15855 T15867 T17A02 T17A30 T17A40 T17A41 T17A54 T19A02 T19A22 T19A55 T19A87 T19A94 T19A96 T19801 T20A43 T20A45 T22A01 T22A03 T22A09 T22A28 T22A29 T22A56 T22A72 T22813 T22815 T22829 T22836 T22839 T22843 T22E02 T22E06 T22H09 Total 190001/2 282100/1 T13A04 T13A08 T13A12 T13A14 T13A16 T13A18 T13A19 T13A26 T13A28 T13A30 T13A35 T13A51 T13A69 T13A75 T13A77 T13A98 T13B09 T13B23 T13B26 T13B31 T13B32 T13B33 T13B36 T13B38 T13B39 T13B42 T13B43 T13B46 T13B66 T22A16 T22A36 T22H11 T22H45 Total 282100/1 Imputed Interest Income SurplusMaterialsWrite-offLiab Surplus Materials Write-Off Asset Sec 481(a) Roll-Averaqe Meth of Accntnq for Inventories ASSET RETIREMENT OBLIGATION Asset Retirement Obliqation - Coal Ash MarkloMarket-LT MarkloMarke!Req-LT Hedqinq Cash Flow Hedqe - Req Assel/Liab Bond Amortization ReqLiab-RolableSpareParts Accrued Vacation Property Tax Reserves SEVERANCE RESERVE - LT Unbilled Fuel Revenue - NC MGPSiles Deferred Compensation Miscellaneous NC Taxable Income Adi- DTA Workers Com Reserve Deferred Fuel Liability- LT UNBILLED REVENUE - FUEL Lawsui!Conlinqency FAS 5 Non-Income Tax Reserves Renewable Enerqy Adiustments-liab End of Life Nuclear Fuel Cost Reserve Emission Allowance Expense Gain on Emission Allowances Charitable Contribution Accruals Retirement Plan Expense - Underfunded Non-qualified Pension-Accrual Environmental Reserve COLI Death Benefits ANNUAL INCENTIVE PLAN COMP PAYABLE 401 (K) MATCH Tax Int Accrual- Non-curLiab Deferred Book Gain/Loss RABBI Trust Gain/Loss DOE Settlement OPEB Expense Accrual FAS 112 Medical Expenses Accrual DecommissioninqLiability ADIT: PP&E AFUDC Interest Book Depreciation/Amortization Book Gain/Loss on Property Contributions in Aid (CIAC's) Cost of Removal Capitalized Hardware/Software After Tax ADC,M&E, ITC Temporary Tax Interest Capitalized Tax Depreciation/Amortization Tax Gains/Losses DOE Cash Grant Nuclear Fuel Book Burned Casualty Loss Section 174 R&E Deduction Repairs481(a) (Pursuant lo 3115) Indirect Cost Capitalization Book Depreciation Charqed to Other Accounts Non-Cash Overhead Basis Adi Equipment Repairs - Annual Adi Impairment of Plant Assets T & D Repairs 481(a) (pursuant to 3115) T & D Repairs - Annual Adi. Internal Labor Costs Fuel Expense Capitalized for Books Timber Smart Grid Deferred Costs Section481(a) Casualty Losses Capitalized Casualty Restoration lnlerco. Ratable Fleet Spare Parts Self Developed Software Spent Fuel Canisters Asset Retirement Costs - ARO Asset Retirement Costs - Coal Ash 3,677,644 3,764,617 33,073,016 2,345,078 17,420,000 52,649,500 2,646,255 1,119,686 2,180,875 25 165 (19,895) (417,976) (2,669) (170,274) (377,197) (4,954) (158,597) (25,780) (28,158) (493,449) (53,628) (5,476) (1,288) (659,806) (229,647) 0 (31,128) 0 (31,864) (279,930) (19,849) (147,443) (445,625) (22,398) (9,477) (18,459) 473 (4) 4,248,460 188,235,896 20,608,945 4,398,904,556 (35,959) (1,593,229) (174,434) 0 (37,232,328) (89,087,039) 1,860,097,273 (2,686,039) 35,308,649 (88,636,307) 1,687,081 (25,703,427) 94,827,776 (9,872,991,720) (45,513,849) 34,602,576 348,822,622 (3,726,708) (21,208,540) 148,398,802 5,615,883 13,479,082 18,756,472 (363,093,992) 49,202,931 (9,000,000) (84,322,010) (497,126) 2,745,728 37,787 (8,868,155) 40,636,143 3,726,708 (2,488,781) (25,443,710) 21,295,387 (707,749,319) (883,247,857) (9,555,023,679) 754,033 (15,743,863) 22,735 (298,852) 750,218 (14,279) 217,554 (802,622) 83,565,002 385,229 (292,876) (2,952,435) 31,543 179,509 (1,256,047) (47,533) (114,087) (158,755) 3,073,228 (416,454) 76,176 713,701 4,208 (23,240) (320) 75,060 (343,944) (31,543) 21,065 215,356 (180,244) 5,990,390 7,475,810 80,873,720 (33,192) (462) (47) 23,901 40,547 (8,643,021) (12,040,162) (524,202) 502,385 (6,321) 27,539 17,873 249 11,602 (12,870) (21,833) 4,653,935 6,483,164 282,263 (270,515) 3,404 (14,829) (58) 6,963 146,292 934 59,596 132,019 1,734 55,509 9,023 9,855 172,707 18,770 1,917 451 230,932 80,376 107 (4,061) 10,895 11,152 97,976 6,947 51,605 155,969 7,839 3,317 6,461 (12,932) (271,684) (1,735) (110,678) (245,178) (3,220) (103,088) (9,216) (18,303) (320,742) (34,858) (3,560) (837) (428,874) (149,270) 0 (20,233) 0 (20,711) (181,955) (12,902) (95,838) (289,656) (14,559) (6,160) (11,998) (3) 12,586 557,630 61,052 11,602 13,031,315 (263,911) 5,510,352 (7,957) 104,598 (262,576) 4,998 (76,144) 280,918 (29,247,751) (134,830) 102,507 1,033,352 (11,040) (62,828) 439,617 16,636 39,930 55,564 (1,075,630) 145,759 (26,662) (249,796) (1,473) 8,134 112 (26,271) 120,381 11,040 (7,373) (75,374) 63,085 (2,096,637) (2,616,533) (28,305,802) (4,061) (23,373) (1,035,599) (113,382) 0 (24,193,472) 490,121 (10,233,511) 14,778 (194,254) 487,642 (9,282) 141,410 (521,704) 54,317,251 250,399 (190,370) (1,919,083) 20,503 116,681 (816,431) (30,896) (74,157) (103,191) 1,997,598 (270,695) 49,514 463,906 2,735 (15,106) (208) 48,789 (223,564) (20,503) 13,692 139,981 (117,159) 3,893,754 4,859,276 52,567,918 1of6 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For the test year ended December 31, 2016 Item No. 13c 4.0155% 2015 State Def Rate 2016StateDefRate Difference Federal Rate ~ 0.8464% 35.0000% Calculation of Deferred Tax Expense T12A04 T12A05 T15A24 T15A46 T15A81 T15A96 T15804 T15812 T15B21 T15B27 T15B28 T15B29 T15B30 T15B37 T15B38 T15B40 T15B41 T15B45 T15B52 T15B53 T15B70 T15B71 T17A01 T19A86 T20A30 T20A32 T20A35 T20A38 T20A40 T20A44 T20A46 T22A23 T22A25 T22H05 T22H07 T22H12 T22H46 Total 283100/1 Reverse Book Passthrouqh Earninqs PassthrouqhlncomefromK-1 LossonReacquiredDebl-Amort DesiqnBasisAmort GridSouthReqAsset Clean Coal Rider Req Asset-Acer Pension FAS158- FAS87Qual Req Asset Save-A-Wall Proqram Deferred Asset-SC DERP Req Asset Rate Case Expense - SC Req Asset - Rate Case Expense Req Asset-Pension Post Retirement PAA-FAS87Qual and Olh Req Asset - Ice Storm Costs Req Asset-Pension Post Retirement PAA-FAS87NQ and Olh Req Asset-Pension Post Retirement PAA-FAS 106 and Olh Req Asset-Acer Pension FAS158- FAS87NQ Req Asset-Acer Pension FAS158- FAS 106/112 Req Asset - Plant Related Retirements Storm Cost Deferral- Asset SC Pollution Control Deferral Req Asset - Harris COLA - Wholesale Req Asset - Harris COLA - Retail Vacation Carryover - Req Asset Deferred Fuel Asset- LT REPS Incremental Costs Return on Solar Assets Req Asset Deferred VOP Costs Requlatorv Asset - Deferred Plant Costs Non-Current Portion of Req Asset Req Asset Nuclear Levelization on Plant Outaqes Req Asset NCEMPA Purchase Deferrals Retirement Plan Expense - Overfunded Retirement Plan Fundinq - Overfunded Non-Qualified Fund MTM Earninqs Decommissioninq Qualified Fund ARO Requlatorv Asset ARO Requlatorv Asset - Coal Ash Total 4,623,952 (290,404) 0 (13,848,503) (3,676,168) (229,939) 0 (237,151,572) (39,137) 2,458 734 117,214 31,115 1,946 (41,025) (10,890) (681) 2,007,251 0 (702,538) 0 0 (1,318,640) (360,105,567) (269,976) (5,885,837) 0 13,698 (860) 0 (25,439) (257) 20,225 1,265 1,304,713 (3,906) (1,066,777) (800) (17,436) 0 11,161 3,047,934 2,285 49,818 2,075 76,189 7,255 1,981,157 1,485 32,382 25,124,057 (117,545,124) (14,713,413) (32,956,169) 0 (212,650) 994,902 124,534 278,941 74,428 (348,216) (43,587) (97,629) 0 (138,223) 646,686 80,947 181,312 (38,034,195) (92,697,820) (1,900,855) 0 321,921 784,594 16,089 (112,672) (274,608) (5,631) 0 209,249 509,986 10,458 (116,085,985) (52,557,004) (10,061,810) (20,954,667) (143,978,221) (293,744) (33,685,370) (672,827,866) 336,973,802 (1,385,342,363) (2,989,689,401) 982,552 444,842 85,163 177,360 1,218,632 2,486 285,113 5,694,815 (2,852,146) 11,725,538 25,304,731 {8,145,808,5241 68,946,123 734 (343,893) (155,695) (29,807) (62,076) (426,521) (870) (99,790) (1,993,185) 998,251 (4,103,938) (8,856,656) (257) 12,336 {24,131,143} {4,318} 638,659 289,148 55,356 115,284 792,111 1,616 185,323 3,701,630 (1,853,895) 7,621,600 16,448,552 44,822,999 Total State Rate State After Tax Code AT OTH 190 NC ST NC Credits Other AT OTH 190 SC EIZCredil F Cash Grant 254100-411101-Slate Amert F ITC 254100 410102 State ITC F State ITC 254100-411101-Slate Amert AT OTH 282 NC ST Slate ITC AT OTH 190 FL STATE NOL AT OTH 190 NC STATE NOL TNC010 TNC040 TNC060 TSC010 TSC060 TSC070 TSC080 Name Other Non-current after-tax DT A for NC credits Deferral of SC EIZ Credit 50% Tax Basis Reduct to Plant-State Amert Free Basis on State Tax Credit to Req Liab-Slate Free Basis on State Tax Credit to Plant-State Amert Free Basis on State Tax Credit on Plant-State Other FL Slate NOLs Other NC Slate NOLs NC - Bonus Depreciation Adi. NC- Pollution Control Subtraction of Federal Tax Credits SC - SC Bonus Depreciation Adi. Subtraction of Federal Tax Credits SC Depreciation Adjustment SC Sec 481(a) Casualty Losses ~ (7,605,603) 2,143,182 13,756 (3,882,589) 371 53,951 (24,692) Federal Effect of State Rate Federal After Tax Code F RGAL 182320-411100-Solar AT OTH 190 NC EPRI Credit AT OTH 190 NC R&D CREDIT AT OTH 190 NC Solar ITC AT OTH 190 SC EIZCredil F Cash Grant 254100-411100 F ITC 254100 410100 Slate ITC F Slate ITC 254100-411100 F ITC 255000 410100 Solar AT OTH 282 NC Solar AT OTH 282 NC Slate ITC F ARAM 282100-411100 AT OTH 190 NC Federal NOL AT OTH 190 FL STATE NOL AT OTH 190 NC STATE NOL TNC010 TNC040 TNC060 TSC010 TSC060 TSC070 TSC080 Name Other Noncurrenl After-tax DT A for Solar Basis Reduction Other Noncurrenl After-tax DT A for EPRI Credit Other Noncurrenl After- Tax DT A for R&D Credit Other Noncurrenl After-tax DTA for Solar ITC Deferral of SC EIZ Credit 50% Tax Basis Reduct to Plant - Fed Only Amert Free Basis on State Tax Credit to Req Liab-Fed Only Free Basis on State Tax Credit to Plant-Fed Only Amert Solar ITC Section 48 Other Noncurrenl After-tax DT A for Solar Basis Reduction Free Basis on State Tax Credit on Plant-Fed Only FERC- FIT Plant Adi (Ulil- 411) 190155 Other NC Federal NOLs Other FL Slate NOLs Other NC Slate NOLs NC - Bonus Depreciation Adi. NC- Pollution Control Subtraction of Federal Tax Credits SC - SC Bonus Depreciation Adi. Subtraction of Federal Tax Credits SC Depreciation Adjustment SC Sec 481(a) Casualty Losses ~ 2,661,961 (750,114) (4,814) 1,358,906 (130) (18,883) 8,642 2of6 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For the test year ended December 31, 2016 Item No. 13c Pretax current Year J+K+L =M Calculation of Deferred Tax Expense Current Code 190001/2 T11A02 T11A18 T11806 T11808 T11817 T13808 T13845 T15A22 T15A23 T15A65 T15B07 T15B55 T15B67 T17A02 T17A30 T17A40 T17A41 T17A54 T19A02 T19A22 T19A55 T19A87 T19A94 T19A96 T19B01 T20A43 T20A45 T22A01 T22A03 T22A09 T22A28 T22A29 T22A56 T22A72 T22B13 T22B15 T22B29 T22B36 T22B39 T22B43 T22E02 T22E06 T22H09 Total 190001/2 282100/1 T13A04 T13A08 T13A12 T13A14 T13A16 T13A18 T13A19 T13A26 T13A28 T13A30 T13A35 T13A51 T13A69 T13A75 T13A77 T13A98 T13B09 T13B23 T13B26 T13B31 T13B32 T13B33 T13B36 T13B38 T13B39 T13B42 T13B43 T13B46 T13B66 T22A16 T22A36 T22H11 T22H45 Total 282100/1 Name ADIT: Prepaid: Taxes Bad Debts - Tax over Book Imputed Interest Income SurplusMaterialsWrite-offLiab Surplus Materials Write-Off Asset Sec 481(a) Roll-Averaqe Meth of Accntnq for Inventories ASSET RETIREMENT OBLIGATION Asset Retirement Obliqation - Coal Ash MarkloMarket-LT MarkloMarke!Req-LT Hedqinq Cash Flow Hedqe - Req Assel/Liab Bond Amortization ReqLiab-RolableSpareParts Accrued Vacation Property Tax Reserves SEVERANCE RESERVE - LT Unbilled Fuel Revenue - NC MGPSiles Deferred Compensation Miscellaneous NC Taxable Income Adi- DTA Workers Com Reserve Deferred Fuel Liability- LT UNBILLED REVENUE - FUEL Lawsui!Conlinqency FAS 5 Non-Income Tax Reserves Renewable Enerqy Adiustments-liab End of Life Nuclear Fuel Cost Reserve Emission Allowance Expense Gain on Emission Allowances Charitable Contribution Accruals Retirement Plan Expense - Underfunded Non-qualified Pension-Accrual Environmental Reserve COLI Death Benefits ANNUAL INCENTIVE PLAN COMP PAYABLE 401 (K) MATCH Tax Int Accrual- Non-curLiab Deferred Book Gain/Loss RABBI Trust Gain/Loss DOE Settlement OPEB Expense Accrual FAS 112 Medical Expenses Accrual DecommissioninqLiability ADIT: PP&E AFUDC Interest Book Depreciation/Amortization Book Gain/Loss on Property Contributions in Aid (CIAC's) Cost of Removal Capitalized Hardware/Software After Tax ADC,M&E, ITC Temporary Tax Interest Capitalized Tax Depreciation/Amortization Tax Gains/Losses DOE Cash Grant Nuclear Fuel Book Burned Casualty Loss Section 174 R&E Deduction Repairs481(a) (Pursuant lo 3115) Indirect Cost Capitalization Book Depreciation Charqed to Other Accounts Non-Cash Overhead Basis Adi Equipment Repairs - Annual Adi Impairment of Plant Assets T & D Repairs 481(a) (pursuant to 3115) T & D Repairs - Annual Adi. Internal Labor Costs Fuel Expense Capitalized for Books Timber Smart Grid Deferred Costs Section481(a) Casualty Losses Capitalized Casualty Restoration lnlerco. Ratable Fleet Spare Parts Self Developed Software Spent Fuel Canisters Asset Retirement Costs - ARO Asset Retirement Costs - Coal Ash Deferred Only Activitv (131,687) 0 13,290 1,770,155 7,370,071 119,235,359 20,576,762 (87,740,332) 88,625,672 Return to Provision Total Pretax (287,910) (83,911) 0 7,897,592 841,822 0 (1,053,971) 580,535 0 19,525 1,570,642 (315,385) (13,655,352) (3,308,799) (172,701) (1,429,015) 0 0 (22,473,857) 0 (473) 0 2,549,076 4,961,540 (16,851,277) 640,659,459 (1,156,277) 23,350,616 0 (38,628,079) (88,266,525) 1,009,613 611,070 (16,488,105) 32,828,105 (1,437,103,214) (11,891,377) 278,342 1,298 (17,739,495) (9,794,683) 0 0 196,415,200 (235,777) (58,299,756) 297,153 16,281,227 (152,200) 8,674,596 1,785,639 63,963 (2,499,899) 22,125,000 (3,745,891) 406,414 (38,848) (610,000) 16,696,584 1,216,944 107,467 (1,539,442) (473) 0 2,688,795 (6,962,854) 62,659,017 164,158,678 (16,851,277) 641,669,072 (1,156,277) 23,350,616 889,412 (16,486,807) 32,828,105 (1,454,842,709) (21,686,060) 0 196,415,200 (98,605,878) 0 7,240,252 8,833,058 (140,000,000) (3,691,872) (8,922,863) (40,077,068) 1,678,675 (1,064,984) 26,292,225 31,343 0 (14,700,000) 0 13,545,381 (98,605,878) 0 7,240,252 (89,805) (180,077,068) (2,013,197) (1,064,984) 11,592,225 31,343 13,545,381 (1,570,642) (34,620,947) 1,739,218 33,844,918 232,945,264 (484,490,528) 85,990,320 20,576,762 (87,740,332) 88,625,672 (1,148,988) 154,506 19,525 516,671 580,535 (315,385) (13,655,352) (3,308,799) (172,701) (1,429,015) 0 (235,777) (58,299,756) 297,153 16,281,227 (152,200) 31,148,453 1,785,639 63,963 (2,499,899) 22,125,000 (3,745,891) 406,414 (38,848) (610,000) 16,696,584 1,216,944 107,467 (1,539,442) (2,549,076) 2,688,795 (6,962,854) 101,287,096 247,463,663 (83,911) 13,290 9,667,747 7,370,071 (33,245,039) 0 (1,148,988) (687,316) (419,597) 0 (1,366,884) 0 3,663,313 (1,570,642) (144,617,046) (1,570,642) (35,987,831) 1,739,218 33,844,918 236,608,577 (630,678,216) 3of6 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For the test year ended December 31, 2016 Item No. 13c Pretax current Year J+K+L =M Calculation of Deferred Tax Expense Current Code 283100/1 T12A04 T12A05 T15A24 T15A46 T15A81 T15A96 T15B04 T15B12 T15B21 T15B27 T15B28 T15B29 T15B30 T15B37 T15B38 T15B40 T15B41 T15B45 T15B52 T15B53 T15B70 T15B71 T17A01 T19A86 T20A30 T20A32 T20A35 T20A38 T20A40 T20A44 T20A46 T22A23 T22A25 T22H05 T22H07 T22H12 T22H46 Total 283100/1 Name ADIT:Olher Reverse Book Passthrouqh Earninqs PassthrouqhlncomefromK-1 LossonReacquiredDebl-Amort DesiqnBasisAmort GridSouthReqAsset Clean Coal Rider Req Asset-Acer Pension FAS158- FAS87Qual Req Asset Save-A-Wall Proqram Deferred Asset-SC DERP Req Asset Rate Case Expense - SC Req Asset - Rate Case Expense Req Asset-Pension Post Retirement PAA-FAS87Qual and Olh Req Asset - Ice Storm Costs Req Asset-Pension Post Retirement PAA-FAS87NQ and Olh Req Asset-Pension Post Retirement PAA-FAS 106 and Olh Req Asset-Acer Pension FAS158- FAS87NQ Req Asset-Acer Pension FAS158- FAS 106/112 Req Asset - Plant Related Retirements Storm Cost Deferral- Asset SC Pollution Control Deferral Req Asset - Harris COLA - Wholesale Req Asset - Harris COLA - Retail Vacation Carryover - Req Asset Deferred Fuel Asset- LT REPS Incremental Costs Return on Solar Assets Req Asset Deferred VOP Costs Requlatorv Asset - Deferred Plant Costs Non-Current Portion of Req Asset Req Asset Nuclear Levelization on Plant Outaqes Req Asset NCEMPA Purchase Deferrals Retirement Plan Expense - Overfunded Retirement Plan Fundinq - Overfunded Non-Qualified Fund MTM Earninqs Decommissioninq Qualified Fund ARO Requlatorv Asset ARO Requlatorv Asset - Coal Ash Total Deferred Only Activitv Name Other Non-current after-tax DTA for NC credits Deferral of SC EIZ Credit 50% Tax Basis Reduct to Plant-State Amert Free Basis on State Tax Credit to Req Liab-Slate Free Basis on State Tax Credit to Plant-State Amert Free Basis on State Tax Credit on Plant-State Other FL Slate NOLs Other NC Slate NOLs NC - Bonus Depreciation Adi. NC- Pollution Control Subtraction of Federal Tax Credits SC - SC Bonus Depreciation Adi. Subtraction of Federal Tax Credits SC Depreciation Adjustment SC Sec 481(a) Casualty Losses Federal After Tax Code F RGAL 182320-411100-Solar AT OTH 190 NC EPRI Credit AT OTH 190 NC R&D CREDIT AT OTH 190 NC Solar ITC AT OTH 190 SC EIZCredil F Cash Grant 254100-411100 F ITC 254100 410100 Slate ITC F Slate ITC 254100-411100 F ITC 255000 410100 Solar AT OTH 282 NC Solar AT OTH 282 NC Slate ITC F ARAM 282100-411100 AT OTH 190 NC Federal NOL AT OTH 190 FL STATE NOL AT OTH 190 NC STATE NOL TNC010 TNC040 TNC060 TSC010 TSC060 TSC070 TSC080 Name Other Noncurrenl After-tax DT A for Solar Basis Reduction Other Noncurrenl After-tax DT A for EPRI Credit Other Noncurrenl After- Tax DT A for R&D Credit Other Noncurrenl After-tax DTA for Solar ITC Deferral of SC EIZ Credit 50% Tax Basis Reduct to Plant - Fed Only Amert Free Basis on State Tax Credit to Req Liab-Fed Only Free Basis on State Tax Credit to Plant-Fed Only Amert Solar ITC Section 48 Other Noncurrenl After-tax DT A for Solar Basis Reduction Free Basis on State Tax Credit on Plant-Fed Only FERC- FIT Plant Adi (Ulil- 411) 190155 Other NC Federal NOLs Other FL Slate NOLs Other NC Slate NOLs NC - Bonus Depreciation Adi. NC- Pollution Control Subtraction of Federal Tax Credits SC - SC Bonus Depreciation Adi. Subtraction of Federal Tax Credits SC Depreciation Adjustment SC Sec 481(a) Casualty Losses Provision (1,546,861) 83,033 (6,828,209) 837,147 0 Total Pretax (1,546,861) (5,908,029) 0 721,298 721,298 229,939 229,939 (17,317) (17,317) (25,651,653) (550,586) (25,651,653) (550,586) (45,756) (45,756) 595,603 (19,852,997) 269,976 (993,950) (37,707,604) 595,603 (19,852,997) 269,976 (993,950) (37,707,604) 50,715 (24,464,198) 12,224,697 (12) 50,715 (24,464,198) 12,224,697 (12) (2,830,765) (7,071,376) (2,830,765) (7,071,376) (40,630,006) (40,630,006) 273,865 92,697,821 2,100,475 749,922 (2,886,989) (87,543,664) 0 24,116,348 (30,677,230) 12,614,708 273,865 92,697,821 2,100,475 749,922 (2,886,989) (87,543,664) (3,390,898) 24,116,348 (30,677,230) 12,614,708 (15,110,112) (166,870,677) (79,635,635) (434,513,784) (830,325,911) {1,067,352,776} State After Tax Code AT OTH 190 NC ST NC Credits Other AT OTH 190 SC EIZCredil F Cash Grant 254100-411101-Slate Amert F ITC 254100 410102 State ITC F State ITC 254100-411101-Slate Amert AT OTH 282 NC ST Slate ITC AT OTH 190 FL STATE NOL AT OTH 190 NC STATE NOL TNC010 TNC040 TNC060 TSC010 TSC060 TSC070 TSC080 Return to Current Activity 0 801,476 (3,390,898) 0 343,641 (9,875,466) Deferred Only 13,622,175 (3,690,311) (1,464,762) 1,198,977 2,559 5,174,130 (371) (49,245) 83,265 Deferred Only 4,086,652 761,632 23,352,300 (280,517) 0 0 70,345,317 {6,484,568} {162,538,254} 228 (863,412) 109,042 863,412 Current Activity 33,024,603 (520,189) 38,550,617 12,613 (9,233,328) 1,166,096 (23,352,300) (4,086,652) 9,233,328 1,407,900 44,380,729 1,291,609 512,667 (419,642) (896) (1,810,945) 130 17,236 (29,143) 18,258,132 (167,390,866) (41,085,018) (434,513,784) (769,856,060) {1,236,375,598} Return to Provision (34,689,760) 882,228 (2,078,493) 1,607 2,078,493 918 (9,166,248) 59,537 (4,312) 0 81,729 294 Return to Provision (569,121) 189,515 3,885,636 (3,252,116) (308,780) 0 (22,227,412) 17,181 3,252,116 569,121 22,227,412 4,542,150 (321) 3,208,187 (20,838) 1,509 (28,605) 0 (103) 0 4 of6 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For the test year ended December 31, 2016 2015 State Def Rate 4.0155% Item No. 13c 2016 State Def Rate--'="~'~"~%~ Difference 0.8464% Federal Rate 35.0000% Federal Composite Rate 33.8908% Tax S:ff-ect on Pretax for Current Year Not Including Rate Change on Beginning: Balance Code 190001/2 T11A02 T11A18 T11806 T11808 T11817 T13808 T13845 T15A22 T15A23 T15A65 T15807 T15855 T15867 T17A02 T17A30 T17A40 T17A41 T17A54 T19A02 T19A22 T19A55 T19A87 T19A94 T19A96 T19801 T20A43 T20A45 T22A01 T22A03 T22A09 T22A28 T22A29 T22A56 T22A72 T22813 T22815 T22829 T22836 T22839 T22843 T22E02 T22E06 T22H09 Total 190001/2 282100/1 T13A04 T13A08 T13A12 T13A14 T13A16 T13A18 T13A19 T13A26 T13A28 T13A30 T13A35 T13A51 T13A69 T13A75 T13A77 T13A98 T13B09 T13B23 T13B26 T13B31 T13B32 T13B33 T13B36 T13B38 T13B39 T13B42 T13B43 T13B46 T13B66 T22A16 T22A36 T22H11 T22H45 Total 282100/1 Name ADIT: Prepaid: Taxes Bad Debts - Tax over Book Imputed Interest Income SurplusMaterialsWrite-offLiab Surplus Materials Write-Off Asset Sec 481(a) Roll-Averaqe Meth of Accntnq for Inventories ASSET RETIREMENT OBLIGATION Asset Retirement Obliqation - Coal Ash MarkloMarket-LT MarkloMarke!Req-LT Hedqinq Cash Flow Hedqe - Req Assel/Liab Bond Amortization ReqLiab-RolableSpareParts Accrued Vacation Property Tax Reserves SEVERANCE RESERVE - LT Unbilled Fuel Revenue - NC MGPSiles Deferred Compensation Miscellaneous NC Taxable Income Adi- DTA Workers Com Reserve Deferred Fuel Liability- LT UNBILLED REVENUE - FUEL Lawsui!Conlinqency FAS 5 Non-Income Tax Reserves Renewable Enerqy Adiustments-liab End of Life Nuclear Fuel Cost Reserve Emission Allowance Expense Gain on Emission Allowances Charitable Contribution Accruals Retirement Plan Expense - Underfunded Non-qualified Pension-Accrual Environmental Reserve COLI Death Benefits ANNUAL INCENTIVE PLAN COMP PAYABLE 401 (K) MATCH Tax Int Accrual- Non-curLiab Deferred Book Gain/Loss RABBI Trust Gain/Loss DOE Settlement OPEB Expense Accrual FAS 112 Medical Expenses Accrual DecommissioninqLiability ADIT: PP&E AFUDC Interest Book Depreciation/Amortization Book Gain/Loss on Property Contributions in Aid (CIAC's) Cost of Removal Capitalized Hardware/Software After Tax ADC,M&E, ITC Temporary Tax Interest Capitalized Tax Depreciation/Amortization Tax Gains/Losses DOE Cash Grant Nuclear Fuel Book Burned Casualty Loss Section 174 R&E Deduction Repairs481(a) (Pursuant lo 3115) Indirect Cost Capitalization Book Depreciation Charqed to Other Accounts Non-Cash Overhead Basis Adi Equipment Repairs - Annual Adi Impairment of Plant Assets T & D Repairs 481(a) (pursuant to 3115) T & D Repairs - Annual Adi. Internal Labor Costs Fuel Expense Capitalized for Books Timber Smart Grid Deferred Costs Section481(a) Casualty Losses Capitalized Casualty Restoration lnlerco. Ratable Fleet Spare Parts Self Developed Software Spent Fuel Canisters Asset Retirement Costs - ARO Asset Retirement Costs - Coal Ash 0 N M"C=-Y Calculation of Deferred Tax Expense :J:.1691% 33.890:8% State Only Adi Stat-e (13,297) (2,659) Federal 16,374 18,398 (9,995) (432,752) (104,859) (5,473) (45,287) (142,205) (28,438) 4,504 3,276,478 2,497,777 29,142,820 6,973,632 (29,735,914) 30,035,963 (389,401) 52,363 6,617 175,104 196,748 (106,887) (4,627,910) (1,121,379) (58,530) (484,305) (7,472) (1,847,578) 9,417 515,968 (4,823) 274,907 56,589 2,027 (79,224) 701,163 (118,711) 12,880 (1,231) (19,332) 529,131 38,566 3,406 (48,786) (15) (79,907) (19,758,262) 100,708 5,517,841 (51,582) 2,939,891 605,168 21,678 (847,236) 7,498,343 (1,269,513) 137,737 (13,166) (206,734) 5,658,608 412,432 36,421 (521,729) (160) 85,211 (220,660) 1,985,727 5,202,353 911,255 (2,359,768) 21,235,652 55,634,714 (534,034) 20,335,135 (36,644) 740,004 (5,711,035) 217,466,878 (391,872) 7,913,714 28,186 (522,483) 1,040,355 (46,105,420) (687,253) 301,429 (5,587,513) 11,125,712 (493,058,051) (7,349,582) 421 306,381 233,565 2,725,119 652,098 (2,780,579) 2,808,636 (36,413) 4,896 619 6,224,594 66,566,712 (3,124,919) (33,418,336) 229,451 (2,846) (5,706,822) (63,800) (33,750) 367,369 2,453,780 (30,436) (61,029,586) (682,289) (360,932) 3,928,700 10,622 993 429,267 (49,775) (1,140,490) 55,118 1,072,579 7,498,362 (19,986,823) 4,590,640 (532,303) (12,196,569) 589,435 11,470,319 80,188,575 (213,741,987) Federal Effect of State Only Adj (64,362.37) (3,369) 349 343,151 295,945 (10,571,837) (17,871,227) (3,587,044) 3,581,536 (46,138) 47,264 784 (3,521) (399,578) (12,664) (603,026) (482,056) (10,427) (203,884) (14,178) (35,630) (2,341,027) (44,211) 510,492 (6,112) (384,899) (173,058) 2,027 (110,352) 701,163 (150,575) (267,050) (21,080) (166,774) 83,506 16,168 (6,071) (67,245) (19) (35,959) (1,508,018) (395,094) 1,985,727 (32,018,373) 219,999 4,591,271 (13,909) 441,152 750,218 13,907 (304,930) 237,733 37,459,582 (302,024) (292,876) 3,272,159 31,543 (2,945,410) (1,256,047) (47,533) 115,364 (161,601) (2,633,595) (480,254) 42,426 1,081,071 5,201 (23,240) (320) 75,060 85,322 (31,543) (28,710) (925,135) (125,127) 7,062,970 14,974,172 60,886,897 (124,332.12) (28,190) 4,529 3,263,608 2,475,944 33,796,755 13,456,796 (29,453,651) 29,765,448 (385,998) 37,535 6,559 182,067 343,040 (105,952) (4,568,314) (989,360) (56,796) (428,796) 4,962 (70,051) (19,585,555) 119,477 5,519,757 (51,131) 3,170,823 685,544 21,678 (836,341) 7,498,343 (1,258,361) 235,713 (6,219) (155,129) 5,814,577 420,272 39,738 (515,269) (159) 12,586 1,468,885 (2,298,716) 21,235,652 68,661,968 (188,694) (31,559) 4,879 3,606,760 2,771,889 23,224,918 (4,414,431) (33,040,695) 33,346,983 (432,135) 84,799 7,343 178,546 (56,539) (118,617) (5,171,340) (1,471,416) (67,223) (632,680) (9,216) (105,682) (21,926,582) 75,267 6,030,249 (57,243) 2,785,924 512,486 23,705 (946,693) 8,199,506 (1,408,935) (31,338) (27,299) (321,903) 5,898,083 436,440 33,667 (582,514) (178) (23,373) (39,133) (2,693,810) 23,221,378 36,643,595 (5,974,947) 222,977,230 (399,829) 8,018,312 (262,576) 306,427 (5,663,657) 11,406,630 (522,305,802) (7,484,413) 102,507 67,600,064 (11,040) (33,481,164) 439,617 16,636 2,493,711 25,129 (62,105,216) (536,530) (387,593) 3,678,904 9,150 8,134 (5,754,948) 227,568,502 (413,738) 8,459,464 487,642 320,334 (5,968,587) 11,644,363 (484,846,220) (7,786,436) (190,370) 70,872,224 20,503 (36,426,574) (816,431) (30,896) 2,609,075 (136,472) (64,738,810) (1,016,784) (345,168) 4,759,975 14,351 (15,106) (208) 48,789 4,796,343 (20,503) (568,386) (13,197,078) 527,394 16,436,651 92,546,214 (181,160,893) 112 (26,271) 4,711,021 11,040 (539,676) (12,271,944) 652,521 9,373,682 77,572,042 (242,047,790) 5of6 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For the test year ended December 31, 2016 2015 State Def Rate 4.0155% Item No. 13c 2016 State Def Rate--'="~'~"~%~ Difference 0.8464% Federal Rate 35.0000% Federal Composite Rate 33.8908% Tax S:ff-ect on Pretax for Current Year Not Including Rate Change on Beginning: Balance M"C=-Y Code 283100/1 T12A04 T12A05 T15A24 T15A46 T15A81 T15A96 T15804 T15812 T15821 T15827 T15828 T15829 T15830 T15837 T15838 T15840 T15841 T15845 T15852 T15853 T15870 T15871 T17A01 T19A86 T20A30 T20A32 T20A35 T20A38 T20A40 T20A44 T20A46 T22A23 T22A25 T22H05 T22H07 T22H12 T22H46 Total 283100/1 Name ADIT:Olher Reverse Book Passthrouqh Earninqs PassthrouqhlncomefromK-1 LossonReacquiredDebl-Amort DesiqnBasisAmort GridSouthReqAsset Clean Coal Rider Req Asset-Acer Pension FAS158- FAS87Qual Req Asset Save-A-Wall Proqram Deferred Asset-SC DERP Req Asset Rate Case Expense - SC Req Asset - Rate Case Expense Req Asset-Pension Post Retirement PAA-FAS87Qual and Olh Req Asset - Ice Storm Costs Req Asset-Pension Post Retirement PAA-FAS87NQ and Olh Req Asset-Pension Post Retirement PAA-FAS 106 and Olh Req Asset-Acer Pension FAS158- FAS87NQ Req Asset-Acer Pension FAS158- FAS 106/112 Req Asset - Plant Related Retirements Storm Cost Deferral- Asset SC Pollution Control Deferral Req Asset - Harris COLA - Wholesale Req Asset - Harris COLA - Retail Vacation Carryover - Req Asset Deferred Fuel Asset- LT REPS Incremental Costs Return on Solar Assets Req Asset Deferred VOP Costs Requlatorv Asset - Deferred Plant Costs Non-Current Portion of Req Asset Req Asset Nuclear Levelization on Plant Outaqes Req Asset NCEMPA Purchase Deferrals Retirement Plan Expense - Overfunded Retirement Plan Fundinq - Overfunded Non-Qualified Fund MTM Earninqs Decommissioninq Qualified Fund ARO Requlatorv Asset ARO Requlatorv Asset - Coal Ash Total State After Tax Code AT OTH 190 NC ST NC Credits Other AT OTH 190 SC EIZCredil F Cash Grant 254100-411101-Slate Amert F ITC 254100 410102 State ITC F State ITC 254100-411101-Slate Amert AT OTH 282 NC ST Slate ITC AT OTH 190 FL STATE NOL AT OTH 190 NC STATE NOL TNC010 TNC040 TNC060 TSC010 TSC060 TSC070 TSC080 Name Other Non-current after-tax DTA for NC credits Deferral of SC EIZ Credit 50% Tax Basis Reduct to Plant-State Amert Free Basis on State Tax Credit to Req Liab-Slate Free Basis on State Tax Credit to Plant-State Amert Free Basis on State Tax Credit on Plant-State Other FL Slate NOLs Other NC Slate NOLs NC - Bonus Depreciation Adi. NC- Pollution Control Subtraction of Federal Tax Credits SC - SC Bonus Depreciation Adi. Subtraction of Federal Tax Credits SC Depreciation Adjustment SC Sec 481(a) Casualty Losses Federal After Tax Code F RGAL 182320-411100-Solar AT OTH 190 NC EPRI Credit AT OTH 190 NC R&D CREDIT AT OTH 190 NC Solar ITC AT OTH 190 SC EIZCredil F Cash Grant 254100-411100 F ITC 254100 410100 Slate ITC F Slate ITC 254100-411100 F ITC 255000 410100 Solar AT OTH 282 NC Solar AT OTH 282 NC Slate ITC F ARAM 282100-411100 AT OTH 190 NC Federal NOL AT OTH 190 FL STATE NOL AT OTH 190 NC STATE NOL TNC010 TNC040 TNC060 TSC010 TSC060 TSC070 TSC080 Name Other Noncurrenl After-tax DT A for Solar Basis Reduction Other Noncurrenl After-tax DT A for EPRI Credit Other Noncurrenl After- Tax DT A for R&D Credit Other Noncurrenl After-tax DTA for Solar ITC Deferral of SC EIZ Credit 50% Tax Basis Reduct to Plant - Fed Only Amert Free Basis on State Tax Credit to Req Liab-Fed Only Free Basis on State Tax Credit to Plant-Fed Only Amert Solar ITC Section 48 Other Noncurrenl After-tax DT A for Solar Basis Reduction Free Basis on State Tax Credit on Plant-Fed Only FERC- FIT Plant Adi (Ulil- 411) 190155 Other NC Federal NOLs Other FL Slate NOLs Other NC Slate NOLs NC - Bonus Depreciation Adi. NC- Pollution Control Subtraction of Federal Tax Credits SC - SC Bonus Depreciation Adi. Subtraction of Federal Tax Credits SC Depreciation Adjustment SC Sec 481(a) Casualty Losses 0 N :J:.1691% Calculation of Deferred Tax Expense 33.890:8% State Only Adi State (49,022) (187,231) 2,746 Federal Effect of State Only Federal Adj (524,244) (2,002,279) (961) (88,158.70) (181,293.37) (510,546) (2,004,357.47) (598,705) (2,185,651) 203,429 (10,890) 77,247 (5,869) (9,396,092) (186,598) (15,507) 197,948 (7,795,119) 90,697 (354,294) (12,779,414) 17,188 (8,216,689) 3,794,834 (43,591) (1,056,999) (2,396,547) (13,769,840) (19,857) 31,141,439 706,237 254,155 (978,424) (30,013,154) (1,304,898) 8,143,420 (10,458,839) 3,848,706 (870) 6,088,040 (58,723,314) (12,925,796) (151,364,201) (269,768,367) 343,501 20,225 86,480 (6,418) (8,201,768) (204,047) (16,957) 227,985 (5,376,347) 101,538 (335,976) (13,974,406) 18,795 (9,204,633) 5,177,149 80,943 (867,767) (2,620,646) (15,057,446) 310,743 34,863,720 788,892 277,920 (1,069,916) (31,804,949) (967,516) 8,992,854 (11,253,671) 5,467,111 1,616 6,951,772 (58,333,283) (17,079,968) (153,408,839) (268,857,664) (443,154,188) (413,374,962) 244,454 22,859 (0) (4) (89,710) (224,099) (1,287,606) 8,679 2,937,687 66,566 23,766 (91,492) (2,774,346) (107,461) 764,271 (972,192) 399,773 (959,369) (2,396,547) (13,769,840) 92,815 31,416,047 711,868 254,155 (978,424) (29,669,261) (1,149,203) 8,173,227 (10,396,763) 4,275,227 578,618 (5,304,784) (1,302,025) (13,770,176) (24,397,508) 2,746 6,187,830 (56,730,129) (13,924,047) (147,260,263) (260,910,493) (961) 140,072 31,115 9,233 (549) 1,194,324 (17,449) (1,450) 30,036 2,418,772 10,841 18,318 (1,194,992) 1,607 (987,945) 1,382,315 124,534 189,231 (224,099) (1,287,606) 330,600 3,722,281 82,655 23,766 (91,492) (1,791,794) 337,382 849,434 (794,832) 1,618,404 2,486 863,731 390,031 (4,154,172) (2,044,639) 910,703 (39,181,979) 2,746 (419,017,767) (961) 29,779,226 77,928 (5,869) (8,693,554) (186,598) (15,507) 201,855 (6,728,342) 91,497 (336,858) (12,779,414) 17,188 (8,291,116) 4,143,049 7,287 (549) (812,927) (17,449) (1,450) 18,875 (629,161) 8,556 (31,499) (1,194,992) 1,607 (775,295) 387,413 Total After Tax Total After Tax State Federal (21,067,585) 1,683,704 (21,067,585) 1,683,704 228 228 (2,941,905) 110,649 2,941,905 (2,941,905) 110,649 2,941,905 918 918 (12,856,559) (9,010,828) 3,337,847 16,315 1,373,270 (12,856,559) (9,010,828) 3,337,847 16,315 1,373,270 5,000 58,573 (36,348,468) 5,000 58,573 (36,348,468) 3,517,531 951,147 3,885,636 20,100,184 (589,297) 12,613 (31,460,740) 1,183,277 (20,100,184) (3,517,531) 31,460,740 1,407,900 48,922,879 (321) 4,499,796 3,153,790 (1,168,247) (5,710) (480,644) 3,517,531 951,147 3,885,636 20,100,184 (589,297) 12,613 (31,460,740) 1,183,277 (20,100,184) (3,517,531) 31,460,740 1,407,900 48,922,879 (321) 4,499,796 3,153,790 (1,168,247) (5,710) (480,644) 0 (1,750) (20,501) 61,750,568 (36,348,468) Total Per OneSource Tax Provision IDRICR 16,569,2421 61,750,568 1381,403,6201 (1,750) (20,501) 61,750,568 25,402,100 1387,972,8621 PeopleSoft JE's Solar Investment Tax Credits State Rate Chanqe Entries -Remaininq Wholesale Allocated to Income 2013 -Auqust- December 2015 Retail Portion -Deferralof2016Retai1Portion -201601her Audit Settlement Net Operalinq Loss Total PeopleSoft JE's IDRICR 133,557,9221 32,602,450 Grand Total (DR)CR (40,127,1641 (348,801,1701 (388,928,3341 Utility Non-Utility Per FERC 29,796,993 10,330,171 353,385,000 (4,583,830) 383,181,993 5,746,341 DRICRI 40,127,164 348,801,170 388,928,334 21,067,585 4,480,492 (1,980,832) (57,044,271) (80,896) 21,067,585 (1,568,172) 693,291 19,965,495 28,314 13,483,522 2,912,320 (1,287,541) (37,078,776) (52,582) 13,483,522 1955,4721 Difference 6of6 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 Item No. 13(d) NCUC Form E-1 Data Request For test year ended December 31, 2016 Reconciliation of Beginning and Ending Year Accumulated Deferred Income Tax A Code 190001/2 AT_OTH_ 190_NC AT_OTH_ 190_NC_Alt Fuel Credit AT_OTH_ 190_NC_EPRl_Credit AT_OTH_ 190_NC_Hydro_Credit AT_OTH_ 190_NC_LIH_OTH_CREDIT AT_OTH_ 190_NC_R&D_CREDIT AT_OTH_ 190_NC_R&D_CREDIT_ST AT_OTH_ 190_NC_Solar_ITC AT_OTH_ 190_NC_ST AT_OTH_ 190_NC_ST_NC_Credits other AT_OTH_ 190_SC_EIZCredit F_REGAL_ 190001_254100_Cash Grant F_ RGAL_ 190001_254100_Cash Grant_Grossup Amo rt F_RGAL_ 190001_254100_State ITC F_ RGAL_ 190001_254100_State ITC_Grossup Amo rt F_RGAL_ 190001-254100 F_ RGAL_ 190001-254100-Hydro F_ RGAL_ 190001-254100-Solar F_ RGAL_ 190002_ 254100_Cash Grant F_ RGAL_ 190002_ 254100_Cash Grant_Grossup Amort F_RGAL_ 190002_254100_State ITC F_ RGAL_ 190002_ 254100_State ITC_Grossup Amort F_RGAL_ 190002-254100 F_RGAL_ 190002-254100-Hydro F_RGAL_ 190002-254100-Solar F_RGAL_ARAM_GROSSUP_ 190001-254100 F_RGAL_ARAM_GROSSUP_ 190002-254100 F_RGAL_State_Rate Chng_Gross Up_ 190001-253600 F_RGAL_ State_Rate Chng_Gross Up_ 190001-254150 F_RGAL_State_Rate Chng_Gross Up_ 190002-253600 F_RGAL_ State_Rate Chng_Gross Up_ 190002-254150 T11A02 T11A18 T11B06 T11B08 T11B17 T13B08 T13B45 T15A22 T15A23 T15A65 T15B07 T15B55 T15B67 T17A02 T17A30 T17A40 T17A41 T17A54 T19A02 T19A22 T19A55 T19A87 T19A94 T19A96 T19B01 T20A43 Name ADIT: Prepaid: Taxes other Non-Current After-Tax OTA OTH NC AT OTA for Alt Fuel Credit-Fed other Noncurrent After-tax OTA for EPRI Credit Other Noncurrent After-tax OTA for Hydro Credit LI H and other Credits other Noncurrent After-Tax OTA for R&D Credit other Noncurrent After-Tax OTA for R&D Credit State Other Noncurrent After-tax OTA for Solar ITC other Non-Current AT ST OTA Other Non-current after-tax OTA for NC credits Deferral of SC EIZ Credit 50% Tax_Basis Reduct to Reg Liab Grossup - Fed Only 50% Tax Basis Reduct to Reg Liab Grossup - Fed Only_Amort Free Basis on State Tax Credit to Reg Liab Grossup-Fed Only Free Basis on St Tax Credit to Reg Liab Grossup-Fed Amert FERC - FIT Adj Offset to Regulatory Asset (254100) Other Noncurrent After-tax OTA for Hydro ITC Grossup Other Noncurrent After-tax OTA for Solar ITC Grossup 50% Tax Basis Reduct to Reg Liab Grossup-State 50% Tax Basis Reduct to Reg Liab Grossup-State Amert Free Basis on State Tax Credit to Reg Liab Grossup-State Free Basis on St Tax Credit to Reg Liab Grossup-State Amert FERC - SIT Adj Offset to Reg Liab other Noncurrent After-tax OTA for Hydro ITC Grossup-State Other Noncurrent After-tax OTA for Solar ITC Grossup FERC-FIT Adj Offset to Reg Liab-ARAM Gross-up FERC-SIT Adj Offset to Reg Liab-ARAM Gross-up FERC - FIT Adj for Rate Change Offset to Def Cr (253) FERC - FIT Adj for Rate Change Offset to Reg Liab (254) FERC - SIT Adj for Rate Change Offset to Def Cr (253) FERC - SIT Adj for Rate Change Offset to Def Cr (254) Bad Debts - Tax over Book Imputed Interest Income Surplus Materials Write-off Liab Surplus Materials Write-Off Asset Sec 481(a) Roll-Average Meth of Accntng for Inventories ASSET RETIREMENT OBLIGATION Asset Retirement Obligation - Coal Ash Mark to Market-LT Mark to Market Reg - LT Hedging Cash Flow Hedge - Reg AsseVLiab Bond Amortization Reg Liab - Ratable Spare Parts Accrued Vacation Property Tax Reserves SEVERANCE RESERVE - LT Unbilled Fuel Revenue - NC MGP Sites Deferred Compensation Miscellaneous NC Taxable Income Adj- OTA Workers Com Reserve Deferred Fuel Liability- LT UNBILLED REVENUE - FUEL Lawsuit Contingency FAS 5 Non-Income Tax Reserves Renewable Energy Adjustments-liab Beginning Balance B 410/411 Rate Change on Beginning Balance 127,300 2,683,949 558,728 1,256,284 6,091,949 3,216 59,468,160 B 410/411 Deferrals Current Year Activity 761,632 B 410/411 Deferrals Prior Period Activity 189,515 3,885,636 34,689,760 520,959 573,448 314.267 (12,076) 36,267,352 300,854 32,021,317 37,564 (1,443) 4,334,994 35,961 3,827,471 2,560,087 306,004 10,052,794 30,234,356 1,201,599 3,613,878 2,269,087 31,559 3,192 (1.633,928) (2.771,889) 590,854,809 823,090,336 35,835,566 (34,344,050) 432,135 (1.882,603) (7.343) 884,030 18,572,901 118,617 7,566,189 16,760,892 220,149 7,047,305 1,109,770 1,251,223 21,926,582 2,382,966 243,337 57,243 29,318,689 (33,192) (462) (47) 23,901 40,547 (8.643,021) ( 12,040.162) (524.202) 502,385 (6.321) 27,539 107 (12,932) (271,684) (1.735) (110,678) (245,178) (3.220) (103,088) (9.216) (18,303) (320,742) (34,858) (3.560) (837) (428,874) (48,803) 4,925 656,018 2,731,342 44.188,523 7,625,731 (32,516,492) 32,844,599 (106,699) (31,097) 2,926,841 (12,320,583) (425,814) 57,260 7,236 191,478 215,146 (116,881) (5.060,662) (1.226,238) (64,003) (529,592) (87,379) (21,605,840) 110,125 6,033,809 (56,405) 11,543,590 (8.328,792) 1of8 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 Item No. 13(d) NCUC Form E-1 Data Request For test year ended December 31, 2016 Reconciliation of Beginning and Ending Year Accumulated Deferred Income Tax Code T20A45 T22A01 T22A03 T22A07 T22A09 T22A28 T22A29 T22A56 T22A72 T22B13 T22B15 T22B29 T22B36 T22B39 T22B43 T22E02 T22E06 T22H09 TFL050 TNC050 TSC050 Total 190001/2 Name End of Life Nuclear Fuel Cost Reserve Emission Allowance Expense Gain on Emission Allowances Charitable Contribution Carryover Charitable Contribution Accruals Retirement Plan Expense - Underfunded Non-qualified Pension - Accrual Environmental Reserve COLI Death Benefits ANNUAL INCENTIVE PLAN COMP PAYABLE 401 (K) MATCH Tax Int Accrual - Non-cur Liab Deferred Book Gain/Loss RABBI Trust Gain/Loss DOE Settlement OPES Expense Accrual FAS 112 Medical Expenses Accrual Decommissioning Liability FL Charitable Contribution Carryover NC Charitable Contribution Carryover SC Charitable Contribution Carryover A B B B Beginning Balance 10,204,428 410/411 Rate Change on Beginning Balance (149,270) 410/411 Deferrals Prior Period Activity 1,383,165 (20,233) 410/411 Deferrals Current Year Activity 661,756 23,705 (926,460) 1,415,875 12,438,786 881,986 6,551,675 19,801,516 995,258 421.115 820,229 178 1,597,849 70,795,662 7,751,040 (20,711) (181,955) (12,902) (95,838) (289,656) (14,559) (6.160) (11,998) (3) (23,373) ( 1,035,599) (113,382) Accum Deferred -OCI OCI - Fwd Start Swap 190155 AT_OTH_ 190_NC_Federal NOL Total 190155 Deferred Tax- NOL 190155_other NC Federal NOLs 190156 AT_OTH_ 190_FL_STATE_NOL AT_OTH_ 190_NC_STATE_NOL Total 190156 Deferred Tax_State NOLs other FL State NOLs other NC State NOLs 282100/1 AT_OTH_282_NC_Cash Grant AT_OTH_282_NC_Hydro AT_OTH_282_NC_Solar AT_OTH_282_NC_ST_Cash grant AT_OTH_282_NC_ST_State ITC AT_OTH_282_NC_State ITC F_ARAM_282100-411100 F_RGAL_ARAM_EXCESSADIT_282100-254100 F_RGAL_ARAM_EXCESSADIT_282101-254100 F_RGAL_EQUITY_AFUDC_ CWIP_EXCESSADIT_282100-182320 F_RGAL_EQUITY_AFUDC_ CWIP_EXCESSADIT_282101-182320 F_RGAL_EQUITY_AFUDC_EXCESSADIT_282100-182320 F_RGAL_EQUITY_AFUDC_EXCESSADIT_282101-182320 F_RGAL_HYDRO_ITC_BASIS_RED_282100-182320 F_RGAL_SOLAR_ITC_BASIS_RED_282100-182320 T13A04 T13A08 T13A12 T13A14 T13A16 T13A18 T13A19 ADIT: PP&E 50% Tax Basis Reduct on Plant- Fed Only OTH NC After-tax OTA for Hydro Basis Reduction Other Noncurrent After-tax OTA for Solar Basis Reduction 50% Tax Basis Reduct on Plant-State Free Basis on State Tax Credit on Plant-State Free Basis on State Tax Credit on Plant-Fed Only FERC - FIT Plant Adj (Util - 411) FERC-FIT Adj Offset to Reg Liab-ARAM Excess ADIT FERC-SIT Adj Offset to Reg Liab-ARAM Excess ADIT FERC-FIT Offset to Reg Liab ( 182)-Equity-AFUDC-CWIP-Gross-up FERC-SIT Offset to Reg Liab (182)-Equity-AFUDC-CWIP-Gross-up FERC-FIT Offset to Reg Liab (182) Equity-AFUDC-Excess-ADIT FERC-SIT Offset to Reg Liab (182) Equity-AFUDC-Excess-ADIT FERC-FIT Offset to Reg Liab ( 182) Hydro Basis Reduction FERC-FIT Offset to Reg Liab ( 182) Solar Basis Reduction AFUDC Interest Book Depreciation/Amortization Book Gain/Loss on Property Contributions in Aid (CIAC's) Cost of Removal Capitalized Hardware/Software After Tax ADC.M&E. ITC Temporary (175) 996,465 (2.580,428) 37,536,912 (14,315,533) 94,831,159 (28,062,898) 38,680,313 38,680,313 44,380,729 44,380,729 18,025,672 18,025,672 19,228,398 19,228,398 (2.398,702) (2,398, 702) 597 (5.958,061) (5,957,464) 1,884,369,852 190051/52 T22114 Total 190051/52 8,199,506 ( 1,388,224) 150,617 (14,397) (226,065) 6,187,740 450,998 39,827 (570,516) (24, 193,472) 144,361 144,361 573,254 (97,777) (10,406,928) 10,384 2,815,800 (2,486,106) (329,694) (24,336,663) (2.908,934) ( 123.130,007) (14.717,588) 4,471 8,059 (33,505,702) 699,583,979 (1.010,221) 13,279,609 (33,336.182) 634,512 (9.667,078) 490,121 (10,233,511) 14.778 (194,254) 487,642 (9.282) 141,410 (6.245,069) 237,427,851 (428,515) 8,653,718 226,462 (6.110,478) 374.162 103,153 481 2 of 8 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 Item No. 13(d) NCUC Form E-1 Data Request For test year ended December 31, 2016 Reconciliation of Beginning and Ending Year Accumulated Deferred Income Tax Code T13A26 T13A28 T13A30 T13A35 T13A51 T13A69 T13A75 T13A77 T13A98 T13B09 T13B23 T13B26 T13B31 T13B32 T13B33 T13B36 T13B38 T13B39 T13B42 T13B43 T13B46 T13B66 T22A16 T22A36 T22H11 T22H45 TNC010 TNC040 TNC060 TSC010 TSC060 TSC070 TSC080 Total 282100/1 283100/1 F_RGAL_EQUITY_AFUDC_CWIP_GROSSUP_283100-182320 F_RGAL_EQUITY_AFUDC_CWIP_GROSSUP_283101-182320 F_RGAL_EQUITY_AFUDC_GROSSUP_283100-182320 F_RGAL_EQUITY_AFUDC_GROSSUP_283101-182320 F_ RGAL_ GROSSU P_ 283100-182320-Solar F_RGAL_GROSSUP_283101-182320-Solar F_RGAL_ GROSSUP-283100-182320-Hydro F_RGAL_ GROSSUP-283101-182320-Hydro F_RGAL_HYDRO_ITC_BASIS_RED_GROSSUP_283100-182320 F_RGAL_HYDRO_ITC_BASIS_RED_GROSSUP_283101-182320 F_RGAL_SOLAR_ITC_BASIS_RED_GROSSUP_283100-182320 F_RGAL_SOLAR_ITC_BASIS_RED_GROSSUP_283101-182320 T12A04 T12A05 T15A24 T15A46 T15A81 T15A96 T15B04 T15B12 T15B21 T15B27 Name Tax Interest Capitalized Tax Depreciation/Amortization Tax Gains/Losses DOE Cash Grant Nuclear Fuel Book Burned Casualty Loss Section 17 4 R&E Deduction Repairs 481(a) (Pursuant to 3115) Indirect Cost Capitalization Book Depreciation Charged to Other Accounts Non-Cash Overhead Basis Adj Equipment Repairs - Annual Adj Impairment of Plant Assets T & D Repairs 481(a) (pursuant to 3115) T & D Repairs - Annual Adj. Internal Labor Costs Fuel Expense Capitalized for Books Timber Smart Grid Deferred Costs Section 481(a) Casualty Losses Capitalized Casualty Restoration lnterco. Rotable Fleet Spare Parts Self Developed Software Spent Fuel Canisters Asset Retirement Costs - ARO Asset Retirement Costs - Coal Ash NC - Bonus Depreciation Adj. NC - Pollution Control Subtraction of Federal Tax Credits SC - SC Bonus Depreciation Adj. Subtraction of Federal Tax Credits SC Depreciation Adjustment SC Sec 481 (a) Casualty Losses ADIT: other FERC-FIT Adj FERC-SIT Adj FERC-FIT Adj FERC-SIT Adj Offset to Offset to Offset to Offset to Reg Reg Reg Reg Liab-Equity-AFUDC-CWIP-Gross-up Liab-Equity-AFUDC-CWIP-Gross-up Liab Equity-AFUDC-Gross-up Liab Equity-AFUDC-Gross-up OTH NC After-tax OTA for Solar Basis Reduction Grossup OTH NC After-tax OTA for Solar Basis Reduction Grossup OTH NC AT OTA for Hydro Basis Reduction Grossup After-tax OTA for ITC Basis Reduction Grossup FERC-FIT Adj FERC-SIT Adj FERC-FIT Adj FERC-SIT Adj Offset to Offset to Offset to Offset to Reg Reg Reg Reg Liab Hydro ITC Basis Red Gross-up Liab Hydro ITC Basis Red Gross-up Liab Solar ITC Basis Red Gross-up Liab Solar ITC Basis Red Gross-up Reverse Book Passthrough Earnings Passthrough Income from K-1 Loss on Reacquired Debt-Amert Design Basis Amert Grid South Reg Asset Clean Coal Rider A B B B Beginning Balance 35,664,798 (3,713,239,591) (17,117,793) 13,014,055 131,192,450 (1,401,618) (7,976,548) 55,812,901 2,112,138 5,069,493 7,054,323 (136,559,923) 18,505,259 (3,384,907) (31,713,571) (186,969) 1,032,670 14,212 (3,335,320) 15,283,284 1,401,618 (936,032) (9,569,398) 8,009,211 (266, 185,050) (332,190,181) 23,453,681 (6,609,010) (42,419) 11,972,885 (1,144) (166,370) 76,145 (3, 739,969,533) 410/411 Rate Change on Beginning Balance (521,704) 54,317,251 250,399 (190,370) (1,919,083) 20,503 116,681 (816,431) (30,896) (74,157) (103,191) 1,997,598 (270,695) 49,514 463,906 2,735 (15,106) (208) 48,789 (223,564) (20,503) 13,692 139,981 (117,159) 3,893,754 4,859,276 ( 4,943,642) 1,393,068 8,941 (2,523,683) 241 35,068 (16,050) 46,521,859 410/411 Deferrals Current Year Activity 12,166,068 (532,589,230) (4,406,934) 410/411 Deferrals Prior Period Activity (14,670,706) ( 1,753,572) (74,225,628) (8,872,104) (5,603,730) (669,807) (52,649) (6,293) 2,407 288 4,339 519 1,739,072 (111,483) (25,439) 2,074 (5,208,432) (1,382,610) (86,480) 76,189 20,225 1,265 (89,192,884) 1,304,713 Reg Asset- Acer Pension FAS158 - FAS87Qual Reg Asset Save-A-Watt Program Deferred Asset-SC DERP Reg Asset Rate Case Expense - SC (6,574,242) (3,629,901) 72,791,306 (36,543,255) 2,683,231 3,273,524 (51,883,881) (1,368,205) (5,447,808) (3,306,805) ( 14,852,527) 622,116 (394,682) 9,743,876 11,616 5,019,907 (582,079) ( 12,830,494) 644,553 12,542,898 86,329,317 (952,095) 779,335 1,664 3,363,184 (241) (32,009) 54,122 (176,919,898) (53,505,742) (2,497,971) (573,265) 310,246 (506,566) 1,357,621 38,699 (2,803) 53,124 191 267,312 85,215 (6,418) (9,506,481) (204,047) (16,957) 3 of 8 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 Item No. 13(d) NCUC Form E-1 Data Request For test year ended December 31, 2016 Reconciliation of Beginning and Ending Year Accumulated Deferred Income Tax A Code T15B28 T15B29 T15B30 T15B37 T15B38 T15B40 T15B41 T15B45 T15B52 T15B53 T15B70 T15B71 T17A01 T19A86 T20A30 T20A32 T20A35 T20A38 T20A40 T20A44 T20A46 T22A23 T22A25 T22H05 T22H07 T22H12 T22H46 Total 283100/1 Total per OneSource Tax Provision System Name Reg Asset - Rate Case Expense Reg Asset-Pension Post Retirement PAA-FAS87Qual and oth Reg Asset - Ice Storm Costs Reg Reg Reg Reg Asset-Pension Post Retirement PAA-FAS87NQ and oth Asset-Pension Post Retirement PAA-FAS 106 and oth Asset- Acer Pension FAS158 - FAS87NQ Asset- Acer Pension FAS158 - FAS 106/112 Reg Asset - Plant Related Retirements Storm Cost Deferral- Asset SC Pollution Control Deferral Reg Asset - Harris COLA - Wholesale B 410/411 B 410/411 B 410/411 Beginning Balance Rate Change on Beginning Balance Deferrals Current Year Activity Deferrals Prior Period Activity (495,941) ( 135,435,974) (101,538) (2.213,668) 7,255 1,981,157 1,485 32,382 9,449,177 ( 44.208,809) (5.533,726) (12,394,840) (138,223) 646,686 80,947 181,312 ( 14,304,689) (34,863,720) (714,913) 209,249 509,986 10,458 Reg Asset - Harris COLA - Retail Vacation Carryover - Reg Asset Deferred Fuel Asset - LT REPS Incremental Costs Return on Solar Assets Reg Asset Deferred VOP Costs Regulatory Asset - Deferred Plant Costs Non-Current Portion of Reg Asset Reg Asset Nuclear Levelization on Plant Outages Reg Asset NCEMPA Purchase Deferrals Retirement Plan Expense - Overiunded Retirement Plan Funding - Overiunded Non-Qualified Fund MTM Earnings Decommissioning Qualified Fund ARO Regulatory Asset ARO Regulatory Asset - Coal Ash 220,730 (7.357,504) 100,053 (368,357) ( 13,974,406) 18,795 (9.066,411) 4,530,462 (4) ( 1,049,079) (2.620,646) (15,057,446) 101,494 34,353,734 778,434 277,920 (1.069,916) (32,443,607) ( 1,256,664) 8,937,498 (11,368,955) 4,675,000 ( 43,660,026) (19,766,729) (3.784,254) (7.881,066) (54,150,317) (110,477) (12,669,093) (253,051,065) 126,736,100 (521,028,302) (1,230,273,623) 638,659 289,148 55,356 115,284 792,111 1,616 185,323 3,701,630 (1.853,895) 7,621,600 16,448,553 (5,472,441) (61,842.131) (29,512,899) (161,030,439) (311,376,132) 26,069,915 (3,027,820,232) 38,776,940 (351,482,844) (43,430,517) 12.238,890 (192,782) 14.286,826 Adjusting Peoplesoft Entries: Solar Investment Tax Credit- System Entry Not Configured to Ledger SFAS 158 Rate Differential Duke Energy Progress Receivables - Deferred Taxes Booked Outside System (4.339) 5,108 328,378 North Carolina Rate Change - Defer 410/411 to 253/254 for 2016 Retail Portion Rounding Total Adjusting Peoplesoft Entries Subtotal 190-282-283 Reconciliation 329,151 (3,027,491,081) Adjustments Impacting 410/411 & Other Balance Sheet Accounts: North Carolina Rate Change- Remaining Wholesale Allocated to Income 2013 North Carolina Rate Change-August-December 2015 Retail Portion North Carolina Rate Change - Other Amortization of Excess Deferred Taxes (ARAM) Amortization of Free Basis Cash Grants/State Investment Tax Credits Total Adjustments Impacting 410/411 & Other Balance Sheet Accounts Total 410/11 & Other Balance Sheet Reconciling Items (3,027,491,081) 4 of 8 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 Item No. 13(d) NCUC Form E-1 Data Request For test year ended December 31, 2016 Reconciliation of Beginning and Ending Year Accumulated Deferred Income Tax Code 190001/2 AT_OTH_ 190_NC AT_OTH_ 190_NC_Alt Fuel Credit AT_OTH_ 190_NC_EPRl_Credit AT_OTH_ 190_NC_Hydro_Credit AT_OTH_ 190_NC_LIH_OTH_CREDIT AT_OTH_ 190_NC_R&D_CREDIT AT_OTH_ 190_NC_R&D_CREDIT_ST AT_OTH_ 190_NC_Solar_ITC AT_OTH_ 190_NC_ST AT_OTH_ 190_NC_ST_NC_Credits other AT_OTH_ 190_SC_EIZCredit F_REGAL_ 190001_254100_Cash Grant F_ RGAL_ 190001_254100_Cash Grant_Grossup Amo rt F_RGAL_ 190001_254100_State ITC F_ RGAL_ 190001_254100_State ITC_Grossup Amo rt F_RGAL_ 190001-254100 F_ RGAL_ 190001-254100-Hydro F_ RGAL_ 190001-254100-Solar F_ RGAL_ 190002_ 254100_Cash Grant F_ RGAL_ 190002_ 254100_Cash Grant_Grossup Amort F_RGAL_ 190002_254100_State ITC F_ RGAL_ 190002_ 254100_State ITC_Grossup Amort F_RGAL_ 190002-254100 F_RGAL_ 190002-254100-Hydro F_RGAL_ 190002-254100-Solar F_RGAL_ARAM_GROSSUP_ 190001-254100 F_RGAL_ARAM_GROSSUP_ 190002-254100 F_RGAL_State_Rate Chng_Gross Up_ 190001-253600 F_RGAL_ State_Rate Chng_Gross Up_ 190001-254150 F_RGAL_State_Rate Chng_Gross Up_ 190002-253600 F_RGAL_ State_Rate Chng_Gross Up_ 190002-254150 T11A02 T11A18 T11B06 T11B08 T11B17 T13B08 T13B45 T15A22 T15A23 T15A65 T15B07 T15B55 T15B67 T17A02 T17A30 T17A40 T17A41 T17A54 T19A02 T19A22 T19A55 T19A87 T19A94 T19A96 T19B01 T20A43 Name ADIT: Prepaid: Taxes other Non-Current After-Tax OTA OTH NC AT OTA for Alt Fuel Credit-Fed other Noncurrent After-tax OTA for EPRI Credit Other Noncurrent After-tax OTA for Hydro Credit LI H and other Credits other Noncurrent After-Tax OTA for R&D Credit other Noncurrent After-Tax OTA for R&D Credit State Other Noncurrent After-tax OTA for Solar ITC other Non-Current AT ST OTA Other Non-current after-tax OTA for NC credits Deferral of SC EIZ Credit 50% Tax_Basis Reduct to Reg Liab Grossup - Fed Only 50% Tax Basis Reduct to Reg Liab Grossup - Fed Only_Amort Free Basis on State Tax Credit to Reg Liab Grossup-Fed Only Free Basis on St Tax Credit to Reg Liab Grossup-Fed Amert FERC - FIT Adj Offset to Regulatory Asset (254100) Other Noncurrent After-tax OTA for Hydro ITC Grossup Other Noncurrent After-tax OTA for Solar ITC Grossup 50% Tax Basis Reduct to Reg Liab Grossup-State 50% Tax Basis Reduct to Reg Liab Grossup-State Amert Free Basis on State Tax Credit to Reg Liab Grossup-State Free Basis on St Tax Credit to Reg Liab Grossup-State Amert FERC - SIT Adj Offset to Reg Liab other Noncurrent After-tax OTA for Hydro ITC Grossup-State Other Noncurrent After-tax OTA for Solar ITC Grossup FERC-FIT Adj Offset to Reg Liab-ARAM Gross-up FERC-SIT Adj Offset to Reg Liab-ARAM Gross-up FERC - FIT Adj for Rate Change Offset to Def Cr (253) FERC - FIT Adj for Rate Change Offset to Reg Liab (254) FERC - SIT Adj for Rate Change Offset to Def Cr (253) FERC - SIT Adj for Rate Change Offset to Def Cr (254) Bad Debts - Tax over Book Imputed Interest Income Surplus Materials Write-off Liab Surplus Materials Write-Off Asset Sec 481(a) Roll-Average Meth of Accntng for Inventories ASSET RETIREMENT OBLIGATION Asset Retirement Obligation - Coal Ash Mark to Market-LT Mark to Market Reg - LT Hedging Cash Flow Hedge - Reg AsseVLiab Bond Amortization Reg Liab - Ratable Spare Parts Accrued Vacation Property Tax Reserves SEVERANCE RESERVE - LT Unbilled Fuel Revenue - NC MGP Sites Deferred Compensation Miscellaneous NC Taxable Income Adj- OTA Workers Com Reserve Deferred Fuel Liability- LT UNBILLED REVENUE - FUEL Lawsuit Contingency FAS 5 Non-Income Tax Reserves Renewable Energy Adjustments-liab SUM B c B+C= D A+D 410/411 Total Adjustments Total Year Change Ending Balance 951,147 951,147 3,885,636 3,885,636 20,100,184 20,100,184 (21,067,585) (21,067,585) 1,094,407 (6.915) 18,524,501 (696,730) (2.691,285) (6.915) 18,524,501 (696,730) (2.691,285) 10,823,174 (8.177) (333) 1,732,232 (65,151) ( 1, 195,286) (7.828) 178,932 (758,100) (137,500) (1.669,036) 20,759,650 (417,631) 1,154,589 131,441 10,823,174 (8.177) (333) 1,732,232 (65,151) ( 1, 195,286) (7.828) 178,932 (758,100) (137,500) (1.669,036) 20,759,650 (417,631) 1,154,589 (57,253) (31,559) 4,878 3,606,760 2,771,889 23,224,919 (4,414,431) (33,040,694) 33,346,984 (432,135) 84,799 7,343 178,546 (56,538) (118,616) (5.171,340) (1,471,416) (67,223) (632,680) (630,024) (105,682) (21,926,582) 75,267 6,030,249 (57,242) 2,785,924 1,094,407 (188,694) (31,559) 4,878 3,606,760 2,771,889 23,224,919 (4,414,431) (33,040,694) 33,346,984 (432,135) 84,799 7,343 178,546 (56,538) (118,616) (5.171,340) (1,471,416) (67,223) (632,680) (9.216) (105,682) (21,926,582) 75,267 6,030,249 (57,242) 2,785,924 (620,808) 127,300 3,635,096 558,728 1,256,284 9,977,585 3,216 79,568,344 13,622.175 1,094,407 314.267 (18,991) 18,524,501 (696,730) 33,576,067 300,854 42,844,491 29,387 (1.776) 1,732,232 (65,151) 3,139,708 28,133 4,006,403 1,801,987 168,504 8,383,758 50,994,006 783,968 4,768,467 2,211,834 8,070 1,972,832 614,079,728 818,675,905 2,794,872 (997,066) (1.797,804) 1,062,576 18,516,363 2,394,849 15,289,476 152,926 6,414,625 479,746 1,145,541 2,458,233 6,273,586 32,104,613 5 of 8 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 Item No. 13(d) NCUC Form E-1 Data Request For test year ended December 31, 2016 Reconciliation of Beginning and Ending Year Accumulated Deferred Income Tax SUM B Code Name T20A45 T22A01 T22A03 T22A07 T22A09 T22A28 T22A29 T22A56 T22A72 T22B13 T22B15 T22B29 T22B36 T22B39 T22B43 T22E02 T22E06 T22H09 TFL050 TNC050 TSC050 Total 190001/2 End of Life Nuclear Fuel Cost Reserve Emission Allowance Expense Gain on Emission Allowances Charitable Contribution Carryover Charitable Contribution Accruals Retirement Plan Expense - Underfunded Non-qualified Pension - Accrual Environmental Reserve COLI Death Benefits ANNUAL INCENTIVE PLAN COMP PAYABLE 401 (K) MATCH Tax Int Accrual - Non-cur Liab Deferred Book Gain/Loss RABBI Trust Gain/Loss DOE Settlement OPES Expense Accrual FAS 112 Medical Expenses Accrual Decommissioning Liability FL Charitable Contribution Carryover NC Charitable Contribution Carryover SC Charitable Contribution Carryover 190051/52 T22114 Total 190051/52 Accum Deferred -OCI OCI - Fwd Start Swap 190155 AT_OTH_ 190_NC_Federal NOL Total 190155 Deferred Tax- NOL 190155_other NC Federal NOLs 190156 AT_OTH_ 190_FL_STATE_NOL AT_OTH_ 190_NC_STATE_NOL Total 190156 Deferred Tax_State NOLs other FL State NOLs other NC State NOLs 282100/1 AT_OTH_282_NC_Cash Grant AT_OTH_282_NC_Hydro AT_OTH_282_NC_Solar AT_OTH_282_NC_ST_Cash grant AT_OTH_282_NC_ST_State ITC AT_OTH_282_NC_State ITC F_ARAM_282100-411100 F_RGAL_ARAM_EXCESSADIT_282100-254100 F_RGAL_ARAM_EXCESSADIT_282101-254100 F_RGAL_EQUITY_AFUDC_ CWIP_EXCESSADIT_282100-182320 F_RGAL_EQUITY_AFUDC_ CWIP_EXCESSADIT_282101-182320 F_RGAL_EQUITY_AFUDC_EXCESSADIT_282100-182320 F_RGAL_EQUITY_AFUDC_EXCESSADIT_282101-182320 F_RGAL_HYDRO_ITC_BASIS_RED_282100-182320 F_RGAL_SOLAR_ITC_BASIS_RED_282100-182320 T13A04 T13A08 T13A12 T13A14 T13A16 T13A18 T13A19 ADIT: PP&E 50% Tax Basis Reduct on Plant- Fed Only OTH NC After-tax OTA for Hydro Basis Reduction Other Noncurrent After-tax OTA for Solar Basis Reduction 50% Tax Basis Reduct on Plant-State Free Basis on State Tax Credit on Plant-State Free Basis on State Tax Credit on Plant-Fed Only FERC - FIT Plant Adj (Util - 411) FERC-FIT Adj Offset to Reg Liab-ARAM Excess ADIT FERC-SIT Adj Offset to Reg Liab-ARAM Excess ADIT FERC-FIT Offset to Reg Liab ( 182)-Equity-AFUDC-CWIP-Gross-up FERC-SIT Offset to Reg Liab (182)-Equity-AFUDC-CWIP-Gross-up FERC-FIT Offset to Reg Liab (182) Equity-AFUDC-Excess-ADIT FERC-SIT Offset to Reg Liab (182) Equity-AFUDC-Excess-ADIT FERC-FIT Offset to Reg Liab ( 182) Hydro Basis Reduction FERC-FIT Offset to Reg Liab ( 182) Solar Basis Reduction AFUDC Interest Book Depreciation/Amortization Book Gain/Loss on Property Contributions in Aid (CIAC's) Cost of Removal Capitalized Hardware/Software After Tax ADC.M&E. ITC Temporary 410/411 Total 512,486 23,705 (946,693) 8,199,506 (1,408,935) (31,338) (27.299) (321,903) 5,898,084 436,439 33,667 (582,514) (178) (23,373) (39,134) (2.693,810) 23,221,379 42,574,789 c B+C= D Adjustments (876,206) 926,498 570,516 44,683,146 (17,325) (17,325) 62,406,401 62,406,401 597 (8.356,763) (8,356, 166) (5.754,948) 227,568,502 (413,737) 8,459,464 487,642 320,333 (5.968,587) Total Year Change 512,486 (852,501) (20,195) 8,199,506 (1,408,935) (31,338) (27.299) (321,903) 5,898,084 436,439 33,667 (11,998) (178) (23,373) (39,134) (2.693,810) 23,221,379 87,257,935 (17,325) (17,325) 62,406,401 62,406,401 896,275 (750,036) 146,239 896,872 (9.106,799) (8,209,927) (3.517,531) (3.517,531) 2,941,905 31,460,740 1,407,900 (1.287,505) (120,395) (17,029,210) (959,203) 4,000,366 3,577,736 2,151 515,657 2,941,905 31,460,740 1,407,900 (1.287,505) (120,395) (17,029,210) (959,203) 4,000,366 3,577,736 2,151 515,657 (5.754,948) 227,568,502 (413,737) 8,459,464 487,642 320,333 (5.968,587) A+D Ending Balance 10,716,914 (852,501) 1,362,970 8,199,506 6,940 12,407,448 854,687 6,229,772 25,699,600 1,431,697 454,782 808,231 1,574,476 70,756,528 5,057,230 23,221,379 1,971,627, 787 127,036 127,036 101,086,714 101,086,714 896,872 10,121,599 11,018,471 573,254 (97,777) ( 13,924,459) 10,384 2,941,905 31,460,740 4,223,700 (3.773,611) (450,089) (41,365,873) (3.868.137) (119,129,641) (11.139,852) 6,622 523,716 (39,260,650) 927.152,481 (1,423,958) 21.739,073 (32,848,540) 954,845 (15,635,665) 6 of 8 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 Item No. 13(d) NCUC Form E-1 Data Request For test year ended December 31, 2016 Reconciliation of Beginning and Ending Year Accumulated Deferred Income Tax SUM B c B+C= D 410/411 Name Code T13A26 T13A28 T13A30 T13A35 T13A51 T13A69 T13A75 T13A77 T13A98 T13B09 T13B23 T13B26 T13B31 T13B32 T13B33 T13B36 T13B38 T13B39 T13B42 T13B43 T13B46 T13B66 T22A16 T22A36 T22H11 T22H45 TNC010 TNC040 TNC060 TSC010 TSC060 TSC070 TSC080 Total 282100/1 283100/1 F_RGAL_EQUITY_AFUDC_CWIP_GROSSUP_283100-182320 F_RGAL_EQUITY_AFUDC_CWIP_GROSSUP_283101-182320 F_RGAL_EQUITY_AFUDC_GROSSUP_283100-182320 F_RGAL_EQUITY_AFUDC_GROSSUP_283101-182320 F_ RGAL_ GROSSU P_ 283100-182320-Solar F_RGAL_GROSSUP_283101-182320-Solar F_RGAL_ GROSSUP-283100-182320-Hydro F_RGAL_ GROSSUP-283101-182320-Hydro F_RGAL_HYDRO_ITC_BASIS_RED_GROSSUP_283100-182320 F_RGAL_HYDRO_ITC_BASIS_RED_GROSSUP_283101-182320 F_RGAL_SOLAR_ITC_BASIS_RED_GROSSUP_283100-182320 F_RGAL_SOLAR_ITC_BASIS_RED_GROSSUP_283101-182320 T12A04 T12A05 T15A24 T15A46 T15A81 T15A96 T15B04 T15B12 T15B21 T15B27 Tax Interest Capitalized Tax Depreciation/Amortization Tax Gains/Losses DOE Cash Grant Nuclear Fuel Book Burned Casualty Loss Section 17 4 R&E Deduction Repairs 481(a) (Pursuant to 3115) Indirect Cost Capitalization Book Depreciation Charged to Other Accounts Non-Cash Overhead Basis Adj Equipment Repairs - Annual Adj Impairment of Plant Assets T & D Repairs 481(a) (pursuant to 3115) T & D Repairs - Annual Adj. Internal Labor Costs Fuel Expense Capitalized for Books Timber Smart Grid Deferred Costs Section 481(a) Casualty Losses Capitalized Casualty Restoration lnterco. Rotable Fleet Spare Parts Self Developed Software Spent Fuel Canisters Asset Retirement Costs - ARO Asset Retirement Costs - Coal Ash NC - Bonus Depreciation Adj. NC - Pollution Control Subtraction of Federal Tax Credits SC - SC Bonus Depreciation Adj. Subtraction of Federal Tax Credits SC Depreciation Adjustment SC Sec 481 (a) Casualty Losses ADIT: other FERC-FIT Adj Offset to Reg Liab-Equity-AFUDC-CWIP-Gross-up FERC-SIT Adj Offset to Reg Liab-Equity-AFUDC-CWIP-Gross-up FERC-FIT Adj Offset to Reg Liab Equity-AFUDC-Gross-up FERC-SIT Adj Offset to Reg Liab Equity-AFUDC-Gross-up OTH NC After-tax OTA for Solar Basis Reduction Grossup OTH NC After-tax OTA for Solar Basis Reduction Grossup OTH NC AT OTA for Hydro Basis Reduction Grossup After-tax OTA for ITC Basis Reduction Grossup FERC-FIT Adj Offset to Reg Liab Hydro ITC Basis Red Gross-up FERC-SIT Adj Offset to Reg Liab Hydro ITC Basis Red Gross-up FERC-FIT Adj Offset to Reg Liab Solar ITC Basis Red Gross-up FERC-SIT Adj Offset to Reg Liab Solar ITC Basis Red Gross-up Reverse Book Passthrough Earnings Passthrough Income from K-1 Loss on Reacquired Debt-Amert Design Basis Amert Grid South Reg Asset Clean Coal Rider Reg Asset- Acer Pension FAS158 - FAS87Qual Reg Asset Save-A-Watt Program Deferred Asset-SC DERP Reg Asset Rate Case Expense - SC Total Adjustments 11,644,364 ( 484,846,221) (7,786,436) (190,370) 70,872,223 20,503 (36,426,57 4) (816,431) (30,896) 2,609,074 (136,472) (64,738,810) (1,016,784) (345,168) 4,759,974 14,351 (15,106) (208) 48,789 4,796,343 (20,503) (568,387) (13,197,079) 527,394 16,436,652 92,546,214 (5,857,038) 2,169,600 10,605 892,625 3,250 38,072 (183,903,781) (598,704) (2,185,651) 343,501 20,225 86,480 (6,418) (8,201,768) (204,047) (16,957) 20,992,611 Total Year Change 11,644,364 ( 484,846,221) (7,786,436) (190,370) 70,872,223 20,503 (36,426,57 4) (816,431) (30,896) 2,609,074 (136,472) (64,738,810) (1,016,784) (345,168) 4,759,974 14,351 (15,106) (208) 48,789 4,796,343 (20,503) (568,387) (13,197,079) 527,394 16,436,652 92,546,214 (5,857,038) 2,169,600 10,605 892,625 3,250 38,072 (162,911,170) (9,686,068) (524,038) 4,080,516 2,312,811 (1,894,055) (31,314) (9,686,068) (524,038) 4,080,516 2,312,811 (1,894,055) (31,314) 1,370 1,158 45 277,661 25,851 ( 1, 140,367) 1,140,367 1,370 1,158 45 277,661 25,851 (1,739,071) ( 1,045,284) 7,830 (2,569) (173,417) 343,501 20,225 86,480 1,412 (8,201,768) (206,616) (190,374) A+D Ending Balance 47,309,162 ( 4, 198,085,812) (24,904,229) 12,823,685 202,064,673 (1,381,115) ( 44,403, 122) 54,996,470 2,081,242 7,678,567 6,917,851 (201,298,733) 17,488,475 (3,730,075) (26,953,597) (172,618) 1,017,564 14,004 (3,286,531) 20,079,627 1,381,115 (1,504,419) (22,766,477) 8,536,605 (249,748,398) (239,643,967) 17,596,643 (4,439,410) (31,814) 12,865,510 (1,144) (163,120) 114,217 (3,902,880, 703) (24,356,774) (2,277,610) (70, 145, 112) (6,559,293) (7,497,785) (701,121) (52,649) (4,923) 3,565 333 282,000 26,370 1 (1,156,767) ( 4,864,931) (1,362,385) 1,412 (97,394,652) (206,616) (190,374) 7 of 8 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 Item No. 13(d) NCUC Form E-1 Data Request For test year ended December 31, 2016 Reconciliation of Beginning and Ending Year Accumulated Deferred Income Tax SUM B c T15B28 T15B29 T15B30 T15B37 T15B38 T15B40 T15B41 T15B45 T15B52 T15B53 T15B70 T15B71 T17A01 T19A86 T20A30 T20A32 T20A35 T20A38 T20A40 T20A44 T20A46 T22A23 T22A25 T22H05 T22H07 T22H12 T22H46 Total 283100/1 Total per OneSource Tax Provision System Name Reg Asset - Rate Case Expense Reg Asset-Pension Post Retirement PAA-FAS87Qual and oth Reg Asset - Ice Storm Costs Reg Asset-Pension Post Retirement PAA-FAS87NQ and oth Reg Asset-Pension Post Retirement PAA-FAS 106 and oth Reg Asset- Acer Pension FAS158 - FAS87NQ Reg Asset- Acer Pension FAS158 - FAS 106/112 Reg Asset - Plant Related Retirements Storm Cost Deferral- Asset SC Pollution Control Deferral Reg Asset - Harris COLA - Wholesale Reg Asset - Harris COLA - Retail Vacation Carryover - Reg Asset Deferred Fuel Asset - LT REPS Incremental Costs Return on Solar Assets Reg Asset Deferred VOP Costs Regulatory Asset - Deferred Plant Costs Non-Current Portion of Reg Asset Reg Asset Nuclear Levelization on Plant Outages Reg Asset NCEMPA Purchase Deferrals Retirement Plan Expense - Overiunded Retirement Plan Funding - Overiunded Non-Qualified Fund MTM Earnings Decommissioning Qualified Fund ARO Regulatory Asset ARO Regulatory Asset - Coal Ash Total 227,985 (5.376,347) 101,538 (335,975) ( 13,97 4,406) 18,795 (9.204,634) 5,177.148 80,943 (867,767) (2.620,646) (15,057,446) 310,743 34,863,720 788,892 277,920 (1.069,916) (31,804,948) (967,516) 8,992,854 (11.253,671) 5,467,111 1,616 6,951,772 (58,333,283) (17,079,968) ( 153,408,839) (268,857,664) (356, 136,421) A+D (5, 164,555) Total Year Change 183,240 ( 4,880.126) 101,538 (335,975) ( 13,97 4,406) 30,797 (9,449,177) 5,177.148 80,943 (867,767) (2.620,646) (15,057,446) 310,743 34,863,720 788,892 277,920 (1.069,916) (32,906,318) 19,766,729 (10,419,292) (11.253,671) 5,358,250 110,477 6,951,772 (58,333,283) (17,079,968) ( 153,408,839) (274,022,219) 60,640,116 (295,496,305) (3,323,316,537) 4,339 (7,415) (328,378) (2.307) 410/411 Code B+C= D Adjustments (44.745) 496,221 12,002 (244,543) (1.101,370) 20,734,245 (19,412.146) (108,861) 108,861 Ending Balance (312.701) (140,316,100) (2.549,643) ( 13,97 4,406) 30,797 (39,031,661) (5,452,783) ( 13,262,607) (2.620,646) (15,057,446) ( 13,993,946) 73,979 277,920 (1.069,916) (76,566,344) ( 14.203,546) (19,134,737) (48,792,067) (5.717,321) (311,384,348) 109,656,132 (674,437,141) (1,504,295,842) Adjusting Peoplesoft Entries: Solar Investment Tax Credit- System Entry Not Configured to Ledger SFAS 158 Rate Differential Duke Energy Progress Receivables - Deferred Taxes Booked Outside System North Carolina Rate Change - Defer 410/411 to 253/254 for 2016 Retail Portion Rounding Total Adjusting Peoplesoft Entries Subtotal 190-282-283 Reconciliation Adjustments Impacting 410/411 & Other Balance Sheet Accounts: North Carolina Rate Change- Remaining Wholesale Allocated to Income 2013 North Carolina Rate Change-August-December 2015 Retail Portion North Carolina Rate Change - Other Amortization of Excess Deferred Taxes (ARAM) Amortization of Free Basis Cash Grants/State Investment Tax Credits Total Adjustments Impacting 410/411 & Other Balance Sheet Accounts Total 410/11 & Other Balance Sheet Reconciling Items (37,078,776) 1 (37,078, 777) (393,215, 198) 2,912,320 (1.287,541) (52,582) 1,407,900 1,306,767 4,286,864 (388,928,334) 4,339 (7,415) (328,378) 37,078,776 36,747,319 4 (331,458) (2,307) 97,387,435 (295,827, 763) (3,323,318,844) (295,827, 763) (3,323,318,844) (2.912,320) 1,287,541 52,582 (1,407,900) ( 1,306,767) (4,286,864) 93,100,571 8 of 8 DUKE ENERGY PROGRESS, LLC Item No.13e Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For the test year ended December 31, 2016 Calculation of Investment Tax Credits for the Year (Dr)Cr Acct 255 Current Year Deferrals: (Dr)Cr Acct 255 Per Tax Provision Elm City Solar Installation (Tax In Service Year 2016} Basis $ Investment Tax Credit Eligible% 96.10000% 77,841,000 Investment Tax Credit Eligible Amount Federal Investment Tax Credit% Credit Amount 81,000,000 30% $ $ 23,352,299 (Dr)Cr Acct 255 (Dr)Cr Acct 255 23,352,299 (Dr)Cr Acct 255 Provision to Tax Adjustments to Prior Year Deferrals: Per Tax Provision Per Tax Return Return True Up Fayetteville Solar Installation {Tax In Service Year 2015} Basis $ Investment Tax Credit Eligible Amount $ 45,767,326 94.94464% 46,051,200 Federal Investment Tax Credit% Credit Amount 49,200,000 93.60000% Investment Tax Credit Eligible% 43,453,623 30% 30% $ 13,815,360 $ 13,036,087 $ 131,600,000 $ 122,825,559 $ {779,273) Warsaw Solar Installation (Tax In Service Year 2015} Basis Investment Tax Credit Eligible% Investment Tax Credit Eligible Amount 118,901,553 126,336,000 Federal Investment Tax Credit% Credit Amount 96.80522% 96.00000% 30% 30% $ 37,900,800 $ 35,670,466 $ 27,200,000 $ 25,851,517 (2,230,334) Jacksonville Solar Installation {Tax In Service Year 2015} Basis Investment Tax Credit Eligible% 95.00000% Investment Tax Credit Eligible Amount Federal Investment Tax Credit% Credit Amount Total Credit Amount 96.82851% 25,031,639 25,840,000 30% $ 7,752,000 30% $ (242,508) 7,509,492 $ {3,252,115} Note: The calculation of federal investment tax credits for the tax provision process is based on estimates available at that time. During the federal tax return preparation process, the actual calculation is prepared. There is no provision to tax return true up for the Elm City Solar Installation at this time since the 2016 federal tax return will not be filed until on or about September 15, 2017. DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For the test year ended December 31, 2016 Item No.13f Reconciliation of Beginning and Ending Unamortized Investment Tax Credits (DR)/CR 131,604,359 146,399,648 See details below ~$_ _ _1_4,~7_95~,_28_9_ $ Balance in Account 255 - Beginning of Year Balance in Account 255 - End of Year Activity for the Year Adjustments for Prior Years Current Year Deferral Production-Gross Fayetteville Solar Deferral-Federal Warsaw Solar Deferral-Federal Jacksonville Solar Deferral-Federal Elm City Solar Deferral-Federal Disallowance-NC Disallowance-SC Disallowance-FERC Disallowance-PA Expense Deferral 779,273 2,230,334 242,508 23,352,299 Amortization (DR)ICR Expense Current Yr Amortization 4,269,886 0 0 0 0 (213,806) (27, 137) (47,773) (12,129) (DR)ICR Bal. Sheet Net Activity (4,269,886' (779,273' (2,230,334' (242,508' 23,352,299 213,806 27,137 47,773 12,129 Production-Net Transmission Distribution General 23,352,299 3,252,115 3,969,041 533,396 658,770 143,688 16,131,143 (533,396' (658,770 (143,688 TOTAL 23,352,299 3,252,115 5,304,895 14,795,289 5,304,895 14,795,289 Total Per 2016 FERG Form 1 Difference Note 1: Solar ITC's should be functionalized as production because transmission and distribution for solar does not qualify for the ITC. Note 2: Adjustment for prior years above = 2015 provision to tax return true-up for the related solar facilities. DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For the test year ended December 31, 2016 14. Item No.14 Prepare a complete detailed lead-lag study for the test year for company electric, North Carolina retail, other retail jurisdictions, and FERC wholesale including all workpapers in support thereof. N antahala Power and Light Company is not subject to this requirement. Response: DEP has calculated cash working capital requirements for the 12 month test period ended December 31, 2016, in its per books cost of service, in accordance with the methodology per the Commission's March 21, 2016, order in Docket No. M-100 Sub 137. This calculation is provided in the files attached below, that calculate the lead lag based cash working capital applied in DEP' s per books cost of service studies filed under the allocation methods - the Summer Coincident Peak (lCP) approach and the Summer Winter Peaking and Average (SWP&A) approach. DEP Rate Case El Item 14 Lead Lag NC ICP COS.xis DEP Rate Case El Item 14 Lead Lag NC SWPA COS.xis In both cases, the lead lag calculation applies lead lag days to revenues and expenses allocated to the NC retail jurisdiction per the per books cost of service studies filed under El item 45A in this docket. The number oflead lag days to the various revenue and expense categories are obtained from the last DEP lead lag study by Ernst & Young (E&Y) in 2011, and as applied in the prior 2012 DEP NC rate case under E-2 Sub docket 1023. The E&Y report narrative of that DEP study for the year ended December 31, 2010, is attached below: DEP Rate Case El Item 14 Part 4 Lead Lag EY Report.pdf The "Item 14 Lead Lag Detail" tab in each of the attached lead lag calculation files lists the revenues and expenses from the cost of service provided in E-1 Item 45A, the lead or lag days applicable to each, and a combined weighted average lead or lag for the major revenue and cost components. The "Item 14 Lead Lag Summaiy" tab then combines these to calculate net lag days for revenues versus expenses, and the resulting cash working capital to be applied in the per books cost of service under both 1CP and SWP&A methodologies. E-1 Item 14 Duke Energy Progress, LLC Docket E-2, SUB 1142 Cash Working Capital for NC Retail Operations - Lead Lag Summary For the test period ended December 31, 2016 Dollars in Thousands Summer CP Demand Allocation with MINIMUM SYSTEM Line No Actual Annual Ex1:1ense [AJ Descri1:1tion Lead (Lag) Weighted Amount [CJ ~ [BJ Calculation of NC Retail Amount: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 Total Revenue Lag 38.17 Operation & Maintenance Expense Depreciation and Amortization Taxes Other Than Income Taxes Interest on Customer Deposits Net Income Taxes ITC Income for Return Total Requirements (Sum L3 through L9) $ $ 2,124,637 483,899 100,952 8,662 247,213 (3,323) 589 885 3,551,924 Revenue Lag Days (L 1) Requirements Lead Days (-L 10) Net Lag Days (L 12+L13) Daily Requirements (Line 9, Col. A divided by 365) Estimated Cash Working Capital Requirements (L 14xL15) Add: Cash Working Capital Related to NC Sales Tax Total Cash Working Capital Requirements (L 17 + L 18) 26.27 0.00 96.53 137.50 -8.87 0.00 25.42 22.40 $ 9,744,591 1,191,003 (2, 192,512) $ 14,992,520 79,555,804 $ 9,731 $ 153,463 1 105 154 568 38.17 -22.40 15.77 $ Calculation of Total Company and Jurisdictional Amounts: NC Retail: Cash Working Capital allocated at NB_PLT Factor Total Company Cash Working Capital Requirements (L 19 / L22) 55,820,202 65.1597% $ NC Retail Factor SC Retail Factor NC Wholesale Factor SC Wholesale Factor NCEMPA Factor Total (Sum L26 through L30) 237,214 65.1597% 0.0000% 0.0000% 0.0000% 0.0000% 65.1597% NC Retail Cash Working Capital Requirement (L24 x L26) SC Retail Cash Working Capital Requirement (L24 x L27) NC Wholesale Cash Working Capital Requirement (L24 x L28) SC Wholesale Cash Working Capital Requirement (L23 x L29) NCEMPA Cash Working Capital Requirement (L24 x L30) Total Company Cash Working Capital Requirement (Sum L33 through L37) Item 14 Lead Lag Summary $ 154,568 $ 154 568 Page 1of20 Page 2 of 20 E-1Item14 Duke Energy Progress, LLC Docket E-2, SUB 1142 Cash Working Capital for NC Retail Operations - Lead Lag Summary Detail For the test period ended December 31, 2016 Summer CP Demand Allocation with MINIMUM SYSTEM Line No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 42 43 44 45 46 47 41 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 Total 12 ME Dec 2016 NC Retail Jurisdictional Amount Lead Lag ~ Weighted Amount Total Utility 01:1erating Revenue and Ex1:1ense Line Descri1:1tion OPERATING REVENUES: Sales of Electricity: RETAIL SALES OF ELECTRICITY REV-REPS REV-DERP REV UNBILLED REVENUES REV - SALES FOR RESALE D/A REV - SALES FOR RESALE CREDIT - TRANSMISSION REV - SALES FOR RESALE CREDIT - ENERGY REV - SALES FOR RESALE CREDIT - DEMAND REV - PROV FOR RATE REFUND (3,845, 170,805) (33,231,855) (392,614) (21,599,287) (1,062,135,775) (511,520) (163,720,920) (7,830,000) (699,832) (3,342,615,512) (33,231,855) 0 (18,246,968) 0 (302,534) (99,558,959) (4,745,039) (699,832) 38.01 38.01 38.01 38.01 32.13 32.13 32.13 32.13 32.13 (127,052,815,598) (1,263,142,821) 0 (693,567,254) 0 (9,720,430) (3, 198,829,367) (152,458, 117) (22,485,602) Total Sales of Electricity (Sum L3 through L 12) (5, 135,292,608) (3,499,400,700) 37.83 (132,393,019, 189) (7,752,736) (7,790,254) (3,961,334) (11,433,409) (640,499) (3,535,448) (6,509,841) (3,890,020) (7,321,012) (1,306,803) (6,679,366) 237,259 (60,496,765) (923,037) (57,084) (2,692,558) (5,906,547) 196,040 (130,463,414) (6,901,021) (6,934,417) (3,430,750) (9,496,819) (378,818) 0 (5,426,033) (3,398,411) (4,770,351) (791,932) (3,950,457) 171,196 0 (601,449) (57,084) (1,637,349) (5,115,419) 196,040 (52,523,072) (5,265, 756,0221 (3,551,923, 7731 Other Revenues: REV - FORFEITED DISCOUNTS (450) AS INPUT REV- MISC SERVICE REVENUES (451) REV - RENT (454) - DIST PLT REL REV - RENT (454) - DIST POLE RENTAL REV REV - RENT (454) - TRANS PLT REL REV - RENT (454) - ADD FAC - WHLS REV - RENT (454) - ADD FAC - RET x LIGHTING REV - RENT (454) - ADD FAC - LIGHTING REV - RENT (454) - OTHER REV - OTHER ELEC REV (456) - PROD PLT REL REV - OTHER ELEC REV (456) - TRANS REL REV - OTHER ELEC REV (456) - GEN PLT REL REV - OTHER ELEC REV (456) - WH D/A REV - OTHER ELEC REV (456) - OTHER REV - OTHER ELEC REV (456) - REPS REV - OTHER ELEC REV (456) - OTHER ENERGY REV - OTHER ELEC REV (456) - DIS PLT REL REV - OTHER NC RETAIL SPECIFIC Total Other Revenues (L 16 through L33) Utility Oper Revenues (L 13 + L34) 68.43 62.57 32.89 154.04 32.89 32.89 31.49 31.49 32.89 37.33 37.33 37.33 37.33 37.33 38.01 37.33 0.00 38.01 60.51 (472,236,836) (433,886,460) (112,837,352) (1,462,889,996) (12,459,330) 0 (170,865,787) (107,015,963) (156,896,838) (29,562,834) (147,470,553) 6,390,758 0 (22,452,074) (2,169,748) (61, 122,235) 0 7,451,480 (3, 178,023, 767) 38.17 (135,571,042,9561 19,349,572,010 0 19,349,572,010 OPERATION AND MAINTENANCE EXPENSE: Fuel Used in Electric Generation OM PROD ENERGY - FUEL 1,283,796,622 780,539,411 Fuel Used in Elec Gen (Sum L40 through L42) 1,283,796,622 780,539,411 24.79 0.00 24.79 114,486,004 371,095,580 60,755,982 69,379,387 225,663,830 59,096,405 35.54 35.54 0.00 2,465, 743,423 8,020,092,505 0 546,337,566 354, 139,622 29.61 10,485,835,928 622,438,048 406,604,800 29.14 11,848,463,886 4,705,805 1,249,642 0 1,540,109 7,495,556 4,705,805 0 0 910,885 5,616,690 90.15 555.00 90.15 134.00 97.26 34,601,854 19,322,049 (177.25) (3,424,833, 143) 808,526,501 558,414,077 30.47 17,014,876,914 Total O&M Other than Fuel and Purch. Power (L52 + L58 + L60 + L62) 1,473,061,959 989,957,616 26.25 25,984, 794,560 Total Operation and Maintenance Expense (L43 + L48 + L64) 3,303,196,147 2, 124,636,649 26.27 55,820,202,499 682,233,800 682,233,800 483,898,763 483,898, 763 0.00 0.00 0 0 Purchased Power OM PROD PURCHASES - CAPACITY COST OM PROD PURCHASES - ENERGY COST OM DEFERRED FUEL EXPENSE Purchased Power - Acct 555 & Def Fuel Acct 557 (Sum L46 through L47) O&M Other than Fuel and Purchased Power TOTAL LABOR EXPENSE OM REGULATORY FEE - NCRETAIL OM REGULATORY EXPENSE-SCRETAIL OM REGULATORY EXPENSE-NCUC COAL ASH FEE OM REGULATORY EXPENSE-TRANS Regulatory Commission Expense - Acct 928 (Sum L54 through L57) OM A&G ALL PLANT RELATED ALL OTHER O&M 424,228,321 0 0 122,058,583 546,286,903 DEPRECIATION AND AMORTIZATION: DEPRECIATION AND AMORTIZATION Total Depree & Amort & Prop Loss (L70) TAXES OTHER THAN INCOME TAXES: Item 14 Lead Lag Detail Page 2 of 20 Page 3 of 20 Duke Energy Progress, LLC Docket E-2, SUB 1142 Cash Working Capital for NC Retail Operations - Lead Lag Summary Detail For the test period ended December 31, 2016 Summer CP Demand Allocation with MINIMUM SYSTEM Line No. 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 E-1Item14 Total 12 ME Dec 2016 42,220,760 289,895 28,543 92,934,272 71,366 1,658,801 15,299,135 1,255,485 153,758,258 NC Retail Jurisdictional Amount 27,532,262 243,605 0 61,951,082 55,899 0 11,169,127 0 100,951,976 Interest on Customer Deposits INTEREST ON CUST DEPOSITS - INPUT 9,341,953 8,661,843 137.50 1, 191,003,450 Interest on Customer Deposits (Sum L85 through L86) 9,341,953 8,661,843 137.50 1,191,003,450 INCOME TAXES: Federal Income Taxes BOOK FEDERAL INCOME TAX (53,582, 117) (41,568,469) 36.50 (1,517,249, 113) Federal Income Taxes (Sum L91 through L92) (53,582, 117) (41,568,468) 36.50 (1,517,249,113) State Income Taxes BOOK STATE INCOME TAX (23,847, 119) (18,500,356) 36.50 (675,262,983) State Income Taxes (Sum L96 through L97) 123,847,119) 118,500,356) 36.50 1675,262,983) Deferred Income Taxes BOOK DEFERRED INCOME TAXES 383, 181,991 307,281,343 0.00 Net Income Taxes (L93+L98+L101) 305, 752, 755 247,212,519 (8.87) Total Utility 01:1erating Revenue and Ex1:1ense Line Descri1:1tion OT LABOR RELATED OT LABOR RELATED - DSM/EE OT LABOR RELATED - DERP OT PROPERTY TAX OT FED HEAVY VEHICLE USE TAX OT ELECTRIC EXCISE TAX- SC OT PRIVILEGE TAX OT PUC LICENSE TAX - SC Taxes Other Than Income Taxes (Sum L74 through L81) AMORT OF INVESTMENT TAX CREDIT Investment Tax Credit Adj Net - Acct 411.4 (Sum L 105 through L105) (5,304,895) (3,323,250) (5,304,895) (3,323,250) Lead Lag ~ 33.60 33.60 33.60 184.15 35.31 35.31 (232.69) (119.33) 96.53 Weighted Amount 925,084,009 8,185,132 0 11,408,291,838 1,973,807 0 {2,598,944, 176) 0 9,744,590,610 0 12. 192,512,095) 0.00 0 2,962,038,501 21.80 64,563,284,464 TXD INTEREST CHARGES 253,989, 160 165,498,616 562,788,844 424,386,656 816,778,004 589,885,272 90.59 0.00 25.42 14,992,519,599 0 14,992,519,599 22.40 79,555,804,063 107 108 Total Utility Operating Expenses (L66 + L71 + L82+L87+L103 + L106) 109 110 NET OPERATING INCOME: 111 INTEREST EXPENSE-ELECTRIC 112 Income for Return (L 113 - L 111) 113 Net Utility Operating Income (L36 - L 108) 114 115 Total Requirements (L108 + L113) 4,448,978,018 5,265,756,022 Item 14 Lead Lag Detail 3,551,923,773 Page 3 of 20 NCUC Form E-1 DUKE ENERGY PROGRESS, LLC Docket E-2, SUB 1142 NORTH CAROLINA RETAIL COST OF SERVICE STUDY "PER BOOKS" WITHOUT CASH WORKING CAPITAL TEST YEAR ENDING December 31, 2016 Item No.14 Support COS Work.papers Summer CP Demand Allocation with MINIMUM SYSTEM COS SUMMARY - PER BOOKS TOTAL SYSTEM NC RETAIL NC RES NC SGS NC SGSCLR NC MGS NC LGS NC SI NC TSS NC ALS NC SLS 5,265,756,022 3,551,923,773 1,754,226,743 232,251,060 3,735,584 917,526,067 538,315,099 6,049,482 603,089 69,849,144 29,148,130 BOOK O&M EXPENSE BOOK DEPRECIATION EXPENSE BOOK OTHER AMORTIZATIONS BOOK OTHER TAXES BOOK STATE INCOME TAX BOOK FEDERAL INCOME TAX BOOK INVESTMENT TAX CREDITS BOOK DEFERRED INCOME TAXES 3,303,196,147 635,558,603 46,675,197 153,758,258 (23,847,119) (53,582,117) (5,304,895) 383,181,991 2,124,636,649 437,495,551 46,403,212 100,951,976 (18,500,356) (41,568,469) (3,323,250) 307,281,343 1,011,370,655 251,038,909 19,589,786 55,092,091 (8,923,609) (20,050,467) (1,734,831) 148,216,538 125,288,458 31,763,671 12,271,318 7,007,438 (1,212,957) (2,725,395) (222,412) 20,146,591 2,001,703 526,086 405,319 106,136 (14,546) (32,683) (2,591) 241,602 572,784,846 88,889,706 7,328,226 23,019,549 (5, 136,520) (11,541 ,253) (835,480) 85,314,945 382,392,412 45,242,580 5,479,154 12,719,719 (1,978,587) (4,445,689) (457,737) 32,863,304 3,458,943 993,696 80,922 219,675 (25,077) (56,345) (7,677) 416,510 375,077 80,482 53,190 17,219 (1,397) (3,138) (433) 23,198 14,599,514 10,672,797 1,105,298 1,467,548 (1,068,983) (2,401,900) (34,863) 17,755,262 12,282,802 8,253,889 85,651 1,296,890 (136,379) (306,430) (27,115) 2,265,183 TOTAL OPER EXPENSE - PB 4,439,636,065 2,953,376,657 1,454,599,070 192,316,712 3,231,026 759,824,018 471,815,156 5,080,648 544,199 42,094,673 23,714,491 598,547,116 (8,661,843) 299,627,673 (7,369,529) 39,934,348 (997,116) 58,891 (5,390) 27,754,471 (0) BOOK REVENUES NC SFL 219,375 OTHER RETAIL 532,427,599 TOTAL WHOLESALE 1,181,404,651 OPERATING EXPENSES: 82,239 33,736 4,348 5,712 (2,300) (5,169) (111) 38,209 343,409,454 65,307,769 (6,454,648) 16,991,761 (2,367,767) (5,320, 138) (541,989) 39,327,384 835, 150,044 132,755,284 6,726,633 35,814,521 (2,978,996) (6,693,510) (1,439,655) 36,573,264 -----------------------------RETURN BEFORE ADJUSTMENTS INTEREST ON GUST DEPOSITS - INPUT 826, 119,957 (9,341,953) 504,558 (32,384) 157,702,048 (239,901) 66,499,943 (1,767) 968,834 (5,663) 5,433,639 (9,617) 156,664 62,711 (477) 450,351,824 1,035,907,584 82,075,775 (680,110) 145,497,066 0 81,395,665 145,497,066 -----------------------------INCOME FOR RETURN 816,778,004 589,885,273 292,258,143 38,937,232 472,174 157,462,148 66,498,176 963,171 53,501 27,754,471 5,424,022 62,234 YEAR END RATE BASE: BOOK PLANT IN SERVICE BOOK DEPRECIATION RESERVE 24,610,546,652 (11,013,726,781) 16,356,961,133 (7,497,311,904) 9,030,137,708 (4,179,199,291) 1 '148,505,487 (530,871,218) 16,785,790 (8,001,390) 3,649,599,488 (1,639, 124,365) 1,930,546,053 (855,403,874) 37,405,586 (17,133,803) 2,642,941 (1,250,268) 304,570,909 (149,896,836) 235,802,508 (115,956,801) 964,664 (474,059) BOOK NET PLANT IN SERVICE 13,596,819,871 8,859,649,228 4,850,938,417 617,634,269 8,784,400 2,010,475,123 1,075,142,178 20,271,783 1,392,673 154,674,073 119,845,707 490,605 PLANT HELD FOR FUTURE USE BOOK NUCLEAR FUEL INVENTORY BOOK ACCUM DEFERRED INC TAX BOOK OPERATING RESERVES BOOK MATERIALS & SUPPLIES BOOK WORKING CAPITAL, REG ASSETS 439,388,832 (3,380,514,220) (102,713,521) 1,162,558,149 963,127,604 267, 193,068 111,409,941 (2, 122,336,299) (1, 142,517,404) (66,990,132) (35,340,839) 786,037,734 406,713,214 587, 106,568 328,545,564 13,432,377 (135,926,250) (4,494,127) 75,487,555 15,761,760 196,042 (1,575, 183) (75,177) 1,716,060 (577,645) 79,736,906 (513,562,178) (16,105,265) 177,784,954 173,547,589 59,240,846 (271,435,847) (9,944,900) 99,803,934 64,787,921 379,745 (4,823,223) (125,471) 1,572,945 1,518,688 40,610 (271,445) (13,044) 250,543 (51,894) 2,070,867 (28,924,131) (287,471) 14,206,271 (234,363) 677,302 (23,207 ,444) (600,388) 8,453,894 3,798,052 8,431 (93,195) (3,450) 48,364 10,896 BOOK RATE BASE 12,678,666,714 8,310,660, 167 581,895,584 8,468,498 1,911,877,129 1,017,594,133 18,794,468 1,347,442 141,505,244 108,967,123 2,599,992,465 (1,179,469,613) 5,653,593,054 (2,336,945,263) 1,420,522,852 3,316,647,791 -----------------------------45,283,160 (378,428,009) (10,875,438) 113,213,118 190,945, 180 126,912,604 (879,749,912) (24,847,950) 263,307 ,297 185,075,855 1,380,660,862 2,987,345,685 ------------------------------ RATE OF RETURN 6.44% 7.10% 4,519,748,894 6.47% 6.69% 5.56% PB Summary NC 8.24% 6.53% 5.12% 3.97% 19.61% 4.98% 461,651 13.46% 5.90% 4.67% Page 4 of20 NCUC Form E-1 DUKE ENERGY PROGRESS, LLC Docket E-2, SUB 1142 NORTH CAROLINA RETAIL COST OF SERVICE STUDY "PER BOOKS" WITHOUT CASH WORKING CAPITAL TEST YEAR ENDING December 31, 2016 Item No.14 Support COS Workpapers Summer CP Demand Allocation with MINIMUM SYSTEM COS DETAIL- REVENUES TOTAL SYSTEM NC RETAIL NC RES NC SGS NC SGSCLR NC MGS NC LGS NC SI NC TSS NC ALS NC SLS NC SFL OTHER RETAIL TOTAL WHOLESALE 502,555,293 0 392,614 3,352,319 0 48,605 16,872,984 762,335 0 1,062,135,775 160,381 47,288,977 2,322,626 0 523,984, 150 1,111,907,758 SALES OF ELECTRICITY: RETAIL SALES OF ELECTRICITY REV- REPS REV- DERP REV UNBILLED REVENUES REV - SALES FOR RESALE D/A REV - SALES FOR RESALE CREDIT - TRANSMISSION REV - SALES FOR RESALE CREDIT - ENERGY REV - SALES FOR RESALE CREDIT - DEMAND REV - PROV FOR RATE REFUND 3,845, 170,805 33,231,855 392,614 21,599,287 1,062,135,775 511,520 163,720,920 7,830,000 699,832 3,342,615,512 33,231,855 0 18,246,968 0 302,534 99,558,959 4,745,039 699,832 1,645,628,092 16,183,936 0 16,709,214 0 146,035 41,512,521 2,290,455 424,452 210,862,429 11,582,770 0 278,788 0 18,944 5,005,046 297,116 49,376 3,136,646 410,491 0 4,194 0 136 73,047 2,132 730 876,347,348 3,592,458 0 922,044 0 87,445 29,710,813 1,371,513 203,527 508,129,399 123,965 0 72,020 0 49,237 22,073,765 772,249 18,311 5,775,485 42,421 0 7,607 0 711 141,497 11,157 1,387 516,093 54,590 0 (943) 0 27 15,132 418 150 65,528,071 1,137,812 0 227,184 0 26,484,933 98,927 0 26,584 0 207,015 4,486 0 277 771,627 0 1,407 252,370 0 487 3,142 0 TOTAL SALES OF ELECTRICITY 5, 135,292,608 3,499,400,700 1,722,894,704 228,094,468 3,627,376 912,235,148 531,238,947 5,980,266 585,466 67,666,100 26,863,300 214,925 5,871,415 5,899,828 2,375,542 7,704,125 182,858 0 21 25,801 25,926 7,461 28,772 170 4,294 4,315 1,053 4,824 33 194,192 10,279 0 7,662 7,699 149,670 11,765 0 380 382 610 1,834 0 2,611,918 382,270 1,906,906 (102,983) 0 329,312 27,800 682,716 3,542,053 (81,742) 794,417 798,262 293,623 994,776 23,720 0 63,207 0 332,556 49,588 247,362 (13,009) 0 41,929 19,896 82,313 437,807 (9,855) 1,586,359 83,282 0 0 (4,242) 0 10,500 1,954 12,690 289,550 (1,519) 1,812,052 64,529 0 0 (3,673) 0 8,136 170 4,150 223,166 (497) OTHER REVENUES: REV REVREV REVREV REV REV REV REV REV REV REV REV REV REV REV REV REV- FORFEITED DISCOUNTS (450) AS INPUT MISC SERVICE REVENUES (451) RENT (454) - DIST PLT REL RENT (454) - DIST POLE RENTAL REV RENT (454) - TRANS PLT REL RENT (454) - ADD FAC - WHLS RENT (454) - ADD FAC - RET x LIGHTING RENT (454) - ADD FAC - LIGHTING RENT (454) - OTHER OTHER ELEC REV (456) - PROD PLT REL OTHER ELEC REV (456) - TRANS REL OTHER ELEC REV (456) - GEN PLT REL OTHER ELEC REV (456) - WH D/A OTHER ELEC REV (456) - OTHER OTHER ELEC REV (456) - REPS OTHER ELEC REV (456) - OTHER ENERGY OTHER ELEC REV (456) - DIS PLT REL OTHER NC RETAIL SPECIFIC TOTAL OTHER REVENUES BOOK REVENUES Functionalized Book Revenues 7,752,736 7,790,254 3,961,334 11,433,409 640,499 3,535,448 6,509,841 3,890,020 7,321,012 1,306,803 6,679,366 (237,259) 60,496,765 923,037 57,084 2,692,558 5,906,547 (196,040) 6,901,021 6,934,417 3,430,750 9,496,819 378,818 0 5,426,033 3,398,411 4,770,351 791,932 3,950,457 (171,196) 0 601,449 57,084 1,637,349 5,115,419 (196,040) 4,730 356 1,775 (266) 0 596 705 1,201 11,125 (144) 191,132 192,057 313,594 625,724 109,494 0 395,718 0 1,082,511 228,901 1,141,845 (30,419) 0 136,484 6,171 488,625 467,584 (58,503) 1,408 1,415 87,519 99,303 61,652 0 4,967,087 0 578,895 128,886 642,932 (16,199) 0 72,987 213 363,026 130,494 (43,465) 4,512 4,534 7,485 15,418 891 10,915 1,862 9,289 (347) 750 70 348 (41) 1,376 73 2,327 11,160 (279) 95 94 249 1,570 (30) 264 0 (16) 33 52 910 (6) 851,715 855,837 517,448 1,936,590 60,861 0 1,083,808 491,609 764,860 127,231 634,678 (26,656) 0 96,434 0 277,493 771,541 0 1,785,801 387,639 2,094,232 (39,407) 60,496,765 225,155 0 777,716 19,587 0 13,137 0 200,821 3,535,448 0 130,463,414 52,523,072 31,332,039 4,156,592 108,208 5,290,919 7,076,152 69,217 17,623 2,183,044 2,284,830 4,449 8,443,449 69,496,893 5,265,756,022 5,023,726,933 3,551,923,773 3,394,794,167 1,754,226,743 1,678,945,693 232,251,060 222,773,363 3,735,584 3,552,061 917,526,067 881,065,377 538,315,099 508,343,696 6,049,482 5,826,900 603,089 569,890 69,849,144 66,894,473 29,148,130 26,610,930 219,375 211,784 532,427,599 506,300,226 1,181,404,651 1,122,632,540 Revenues NC Page 5 of20 DUKE ENERGY PROGRESS, LLC Docket E-2, SUB 1142 NORTH CAROLINA RETAIL COST OF SERVICE STUDY "PER BOOKS" WITHOUT CASH WORKING CAPITAL TEST YEAR ENDING December 31, 2016 NCUC Form E-1 Item No.14 Support COS Workpapers Summer CP Demand Allocation with MINIMUM SYSTEM COS DETAIL- OPER EXPENSE TOTAL SYSTEM NC RETAIL NC RES NC SGS NC SGSCLR NC MGS NC LGS NC SI NC TSS NC ALS NC SLS NC SFL OTHER RETAIL TOTAL WHOLESALE PRODUCTION O&M EXPENSE: FUEL OM PROD ENERGY - FUEL 1,283,796,622 780,539,411 325,456,984 39,239,416 572,689 232,931,932 173,057,691 1, 109,332 118,633 6,049,532 1,978,574 24,630 132,344,003 370,913,207 TOTAL FUEL 1,283,796,622 780,539,411 325,456,984 39,239,416 572,689 232,931,932 173,057,691 1, 109,332 118,633 6,049,532 1,978,574 24,630 132,344,003 370,913,207 PURCHASE POWER OM PROD PURCHASES - CAPACITY COST OM PROD PURCHASES - ENERGY COST OM DEFERRED FUEL EXPENSE 114,486,004 371,095,580 60,755,982 69,379,387 225,663,830 59,096,405 33,489,792 94,093,736 24,552,364 4,344,263 11,344,612 2,960,241 31,166 165,572 43,203 20,053,513 67,343,572 17,607,209 11,291,410 50,033,170 13,232,805 163,136 320,722 84,121 6,108 34,298 8,950 1,748,996 456,375 572,031 149,263 7,121 1,874 11,146,447 38,244,897 1,659,577 33,960, 170 107, 186,854 TOTAL PURCHASES & DEF. FUEL 546,337,566 354, 139,622 152, 135,891 18,649,116 239,941 105,004,294 74,557,385 567,979 49,356 2,205,371 721,294 8,995 51,050,920 141,147,024 8,254,903 2,699,868 33,624 183,394,923 512,060,231 0 1,830, 134, 188 1,134,679,033 477,592,875 57,888,532 812,630 337,936,226 247,615,076 1,677,311 167,989 DEMAND RELATED: OM PROD FIXED O&M 339,032,093 206,873, 773 99,859,048 12,953,619 92,929 59,795,078 33,668,452 486,434 18,213 32,639,969 99,518,351 TOTAL PRODUCTION O&M-DEMAND 339,032,093 206,873, 773 99,859,048 12,953,619 92,929 59,795,078 33,668,452 486,434 18,213 32,639,969 99,518,351 ENERGY RELATED: OM PROD VARIABLE O&M OM PROD VARIABLE O&M-DERP REL OM OTHER EXPENSES - DSM REL 437,629,432 900 84,656,490 273,262,871 113,940,832 13,737,519 41,533 2,117,910 0 0 0 0 120,997,765 0 71,138,688 43,145,992 5,019,085 20,688,695 60,586,616 0 1,861,362 388,371 0 200,495 0 74,216 81,548,283 0 141,024 15,243 TOTAL PRODUCTION O&M-ENERGY 522,286,822 344,401,560 157,086,823 18,756,605 274,712 102,236,978 62,447,978 529,396 56,776 2,691,453, 103 1,685,954,366 734,538,746 89,598,756 1,180,270 499,968,282 343,731,506 2,693, 140 242,977 TRANSMISSION O&M EXPENSE: OM TRANSMISSION EXP - TRANS OM TRANS EXP - WHEEL BY OTHERS OM TRANS EXP - OTH PROD RELATED 43,287,516 761 3,194,759 25,613,049 461 1,936,048 12,363,552 223 934,541 1,603,788 29 121,228 11,506 0 870 7,403,231 133 559,598 4,168,492 75 315,089 60,225 1 4,552 TOTAL TRANSMISSION O&M 46,483,036 27,549,559 13,298,316 1,725,045 12,375 7,962,962 4,483,657 DISTRIBUTION O&M EXPENSE: OM OVERHEAD LINES OM UNDERGROUND LINES OM LINE TRANSFORMERS OM METER EXPENSE OM STREET LIGHTS OM DISTRIBUTION RENTS OM LOAD DISPATCH OM DISTRIBUTION EXP - MISC & SUPERVISION OM CUSTOMER INSTALLATIONS OM SUBSTATIONS OM DISTRIBUTION EXP - DSM/EE 96,535,731 9,534,944 798,661 9,312,665 6,822,286 2,533,934 5,214,815 22,664,091 2,013,972 5,419,869 5,056,039 80,580,637 8,644,789 714,880 8,244,123 5,710,749 2,115,134 4,480,992 19,628,444 1,631,197 4,657,191 4,248,699 66,276,404 6,957,643 509,935 5,794,466 0 1,739,667 2,767,091 13,591,258 0 2,875,897 2,576,859 8,720,575 889,272 56,674 769,988 4,197,897 625,003 115,489 1,445,232 280,805 299,761 263,638 25,021 910 24,984 0 6,920 1,035 42,690 0 1,076 4,433 165,907,007 140,656,837 103,089,221 13,196,072 370,705 TOTAL FUEL, DEF. FUEL & PURCH POWER TOTAL PRODUCTION O&M TOTAL DISTRIBUTION O&M 0 228,903 270,181 1,679,914 0 Op. Exp. NC - 1 8,623 142,979 692,689 0 49,497 596 43,368,796 900 13,517,802 2,260,889 742,186 9,218 56,887,497 120,997,765 10,515,792 3,442,053 42,843 272,922,390 732,576,347 2,255 0 170 4,114,976 74 311,044 13,559,491 226 947,667 64,779 2,425 4,426,094 14,507,383 95,039 14,558 2,853 33,882 44,070 4,203 161 530 55,817 11,230 2,691 93,896 949,283 1,235,615 821,035 105,179 25,052 172,190 0 21,551 473,193 500,722 0 491,800 111,168 23,816 8,423 1,157 249 6,025 0 259 910 11,386,251 2,721,891 246,806 57,564 0 0 110,189 913,368 1,794,174 0 10,378 1,730 1 2,852 1,465 22,498 1,111,035 1,631,197 23,383 8,539 95,783 10,950 1,114 0 5,710,749 2,514 7,358 856,313 0 7,648 2,956 3,225 36 15,861,198 890,155 83,285 811,567 1,111,537 416,335 651,994 2,960,489 382,775 677,631 807,340 2,867,855 6,695,384 25,087 24,654,304 0 0 2,495 22,915 42,824 0 0 0 272 3,103 3,490 0 0 496 256,975 0 2,465 81,829 75,158 0 85,047 0 595,866 Page 6 of20 NCUC Form E-1 DUKE ENERGY PROGRESS, LLC Docket E-2, SUB 1142 NORTH CAROLINA RETAIL COST OF SERVICE STUDY "PER BOOKS" WITHOUT CASH WORKING CAPITAL TEST YEAR ENDING December 31, 2016 Item No.14 Support COS Workpapers Summer CP Demand Allocation with MINIMUM SYSTEM TOTAL SYSTEM NC RETAIL GUST. ACCOUNTING EXPENSE: OM METER READING OM GUST ACCT EXP - MISC OM UNCOLLECTIBLES OM CUSTOMER RECORDS. EXCL REPS 4.468.044 944.100 6.972.450 35.514.951 3.977.475 840.381 6.206.457 31.065.058 3.388.514 715.000 5.280.477 26.430.270 458.474 96.741 714.462 3.576.082 14.890 3.142 23.204 116.142 110.719 23.275 171.896 860.386 1.739 171 1.266 6.337 2.604 549 4.058 20.311 316 523 3.862 19.330 219 46 342 1.710 490.543 103.719 765.993 4.449.893 26 933 6.891 34.489 TOTAL GUST ACCT EXPENSE 26 COS DETAIL - OPER EXPENSE NC RES NC SGS NC SGSCLR NC MGS NC LGS NC SI NC TSS NC ALS NC SLS NC SFL OTHER RETAIL 47.899.545 42.089.371 35.814.261 4.845.760 157.378 1.166.276 9.513 27.522 24.031 42.313 2.317 5.810.148 GUST. SERV & INFO EXPENSE: OM GUST SERV & INFO - GUST ASSIST 4.480.319 3.988.111 3.393.100 459.095 14.910 110.456 814 2.607 2.482 4.428 219 492.208 TOTAL GUST SERV & INFO EXP 4.480.319 3.988.111 3.393.100 459.095 14.910 110.456 814 2.607 2.482 4.428 219 492.208 SALES EXPENSE: OM SALES EXPENSE - DEMO & SELLING OM SALES EXPENSE - DSM/EE 6.290.476 16.809 5.599.404 14.125 4.763.995 8.567 644.580 997 20.934 15 155.083 4.108 1.142 370 3.661 28 3.484 3 6.217 10 308 28 691.072 2.684 TOTAL SALES EXPENSE 6.307.285 5.613.529 4.772.562 645.577 20.949 159.190 1.512 3.689 3.487 28 6.226 308 693.756 A&G REGULATORY EXPENSE: OM REGULATORY EXPENSE-NCUC COAL ASH FEE OM REGULATORY FEE - NCRETAIL OM REGULATORY EXPENSE-SCRETAIL OM REGULATORY EXPENSE-TRANS 4.705.805 1.249.642 1.540.109 4.705.805 0 910.885 2.494.005 0 439.689 317.435 0 57.036 5.321 0 409 1.125.331 0 263.283 691.011 0 148.245 8.861 0 2.142 921 19.836 0 42.840 0 244 TOTAL ADM & GEN REG EXPENSE TOTAL WHOLESALE ADMIN & GENERAL EXPENSE: 80 1.249.642 146.342 482.882 7.495.556 5.616.690 2.933.694 374.471 5.730 1.388.615 839.256 11.002 1.001 19.836 42.840 244 1.395.984 482.882 OTHER A&G EXPENSE: OM A&G LABOR RELATED & MISC OM A&G LABOR RELATED - DSM/EE OM A&G LABOR RELATED - DERP OM A&G ALL PLANT RELATED OM A&G GENERAL PLT RELATED 295.384.504 871.488 914.912 34.601.854 1.397.538 192.105.401 732.330 0 19.322.049 1.008.406 101.812.921 444.162 0 10.667.065 606.607 12.958.688 51.668 0 1.356.699 76.625 217.223 764 28.209.183 19.162 0 2.280.503 95.416 361.716 1.452 0 44.186 2.043 37.586 157 9.979 6 278.547 21.635 1.140 96 28.732.186 139.158 914.912 3.071.303 157.011 74.546.916 0 3.122 244 809.760 1.472 0 359.782 24.990 1.748.866 510 19.829 1.570 45.939.480 212.978 0 4.311.176 179.181 TOTAL ADM & GEN PLT EXPENSE 333.170.296 213.168.186 113.530.756 14.443.681 239.385 50.642.814 30.604.263 409.397 41.109 1.196.003 2.049.557 11.221 33.014.570 86.987.540 TOTAL ADMIN AND GEN EXPENSE 340.665.852 218.784.876 116.464.449 14.818.153 245.115 52.031.429 31.443.519 420.400 42.110 1.215.838 2.092.397 11.465 34.410.554 87.470.422 3,303,196,147 2,124,636,649 1,011,370,655 125,288,458 2,001,703 572,784,846 382,392,412 3,458,943 375,077 14,599,514 12,282,802 82,239 343,409,454 835, 150,044 BOOK O&M EXPENSE Op. Exp. NC - 2 12.208.502 232.121 Page 7 of20 DUKE ENERGY PROGRESS, LLC Docket E-2, SUB 1142 NORTH CAROLINA RETAIL COST OF SERVICE STUDY "PER BOOKS" WITHOUT CASH WORKING CAPITAL TEST YEAR ENDING December31, 2016 NCUC Form E-1 Item No.14 Support COS Workpapers Summer CP Demand Allocation with MINIMUM SYSTEM COS DETAIL- OPER. EXPENSE TOTAL SYSTEM NC RETAIL NC RES NC SGS NC SGSCLR NC MGS NC LGS NC SI NC TSS NC ALS NC SLS NC SFL OTHER RETAIL TOTAL WHOLESALE DEPRECIATION & INTANGIBLE PLT AMORT EXPENSE: PRODUCTION FUNCTION: DPE PRODUCTION RELATED DPE EXT. DECOM. TRUST-PROD DPE CONTRA AFUDC NC RET-PROD DPE CONTRAAFUDC SC RET-PROD DPE CONTRA AFUDC WHSL - PROD DPE HARRIS PLANT DISALLOW-NCR DPE HARRIS PLANT DISALLOW-SCR DPE HARRIS PLANT DISALLOW-WHSLE DPE HARRIS PLT. DISALLOW-NCEMPA DPE OTHER NC RETAIL SPECIFIC EXPENSE DPE OTHER SC RETAIL SPECIFIC EXPENSE DPE RATE DIFF. PROD.- SC DPE RATE DIFF. PROD. - WHSLE DPE RATE DIFF. PROD.- NCEMPA 359,337,273 217,761, 115 12,841,497 8,247,003 (4,981,825) (4,981,825) (528,463) 0 (653,970) 0 (4,660,278) (4,660,278) (631,364) 0 (1,033,415) (297,678) 0 (11,433, 107) (11,433, 107) (5,250,329) 0 1,283,116 418,979 191,197 TOTAL PRODUCTION PLT DEPR. 344,601,633 DPE DPE DPE DPE DPE DPE DPE 2,751,308 37,382,131 (85,289) 0 204,148,669 15,688,715 31,071,436 635,558,603 TRANS RELATED - PROD TRANS RELATED - TRANS TRANS RELATED - DATT CONTRA TRANS RELATED - FERG MIT REL DISTRIBUTION PLANT GENERAL PLANT AMO RT LTD TERM PLT BOOK DEPRECIATION EXPENSE 105,114,424 3,980,871 (2,404,753) 0 0 (2,249,540) 0 13,635,342 516,395 (311,942) 0 0 (291,808) 0 97,820 3,705 (2,238) 0 0 (2,093) 0 62,941,970 2,383,725 (1,439,954) 0 0 (1,347,013) 0 35,440,353 1,342,190 (810,786) 0 0 (758,455) 0 512,034 19,392 (11,714) 0 0 (10,958) 0 19,171 726 (439) 0 0 (410) 0 0 (0) 0 0 (0) 0 0 (0) 0 0 (0) 0 0 (0) 0 0 (0) 0 0 (5,518,820) 0 0 (715,896) 0 0 (5,136) 0 0 (3,304,641) 0 0 (1,860,724) 0 0 (26,883) 0 0 (1,007) 0 0 (0) 0 0 (0) 0 0 (0) 0 34,985,357 (84,060) 0 (528,463) 0 0 (631,364) 0 0 (5,250,329) 1,283,116 0 106,590,801 4,678,553 0 0 (653,970) 0 0 (1,033,415) (297,678) 0 418,979 191,197 204,932,908 98,922,182 12,832,090 92,057 59,234,088 33,352,578 481,871 18,042 29,774,258 109,894,468 1,667,313 22, 119,094 0 804,821 10,677,002 0 104,401 1,385,010 0 749 9,936 0 481,923 6,393,333 0 271,353 3,599,855 0 3,920 52,010 0 147 1,947 0 267,869 3,553,639 0 176,804,831 11,320,329 20,651,076 122,424,373 6,809,754 11,400,777 15,131,959 860,194 1,450,017 384,530 17,621 21,192 16,161,174 2,011,477 4,607,711 4,510,296 1,071,133 2,437,363 385,738 22,932 47,225 54,274 2,735 3,337 10,007,736 280,533 384,528 7,713,312 242,871 297,707 31,439 1,080 1,218 26,666,844 1,762,602 3,282,556 816,125 11,709,398 (85,289) 0 676,994 2,605,784 7,137,804 437,495,551 251,038,909 31,763,671 526,086 88,889,706 45,242,580 993,696 80,482 10,672,797 8,253,889 33,736 65,307,769 132,755,284 Op. Exp. NC- 3 Page 8 of20 DUKE ENERGY PROGRESS, LLC Docket E-2, SUB 1142 NORTH CAROLINA RETAIL COST OF SERVICE STUDY "PER BOOKS" WITHOUT CASH WORKING CAPITAL TEST YEAR ENDING December 31, 2016 NCUC Form E-1 Item No.14 Support COS Workpapers Summer CP Demand Allocation with MINIMUM SYSTEM COS DETAIL- OPER EXPENSE OTHER AMORTIZATION EXPENSE: AMORT WHS SPEC - MAYO, RECS AMORT NUCLEAR DESIGN BASIS AMORT NCEMPA ACQ ADJ AMORT DSM/EE DEBIT AMORT DSM/EE CREDIT AMORT DSM/EE O&M DEFERRAL AMORT DSM/EE CAPITAL DEFERRAL AMORT NC REPS DEBIT AMORT NC REPS DEFERRAL AMO RT SC DERP AMORTIZATION AMORT SC POLLUTION CNTL O&M DEF AMORT SC POLLUTION CNTL DPE DEF AMORT RETIRED PLANT AMORT OTHER NC RETAIL PROD REL AMORT OTHER NC RETAIL SPECIFIC AMORT OTHER SC RETAIL SPECIFIC AMORT DISP. OF ALLOWANCES BOOK OTHER AMORTIZATIONS TOTAL SYSTEM 347,294 721,298 12,758,733 108,353,057 (27,882,680) (92,462,378) (12,783,078) 2,327,439 31,116,580 15,907 (220,539) (2,610,226) 29,534,188 3,921,213 1,147,323 (7,244,545) (364,389) 46,675,197 NC RETAIL NC RES NC SGS NC SGSCLR NC MGS NC LGS NC SI NC TSS NC ALS NC SLS NC SFL OTHER RETAIL 437,112 7,731,889 89,387,185 (23,430,422) (78,575, 793) (10,741,898) 2,327,439 31,116,580 0 210,996 3,732,223 54,213,801 (14,210,675) (47,656,635) (6,515,018) 1,133,464 15,153,795 0 27,370 484,140 6,306,581 (1,653,099) (5,543, 799) (757,879) 811,215 10,845,503 0 196 3,473 93,254 (24,444) (81,975) (11,207) 28,749 384,363 0 126,343 2,234,836 25,995,759 (6,814,082) (22,851,569) (3, 123,980) 251,603 3,363,791 0 71,139 1,258,355 2,338,838 (613,063) (2,055,955) (281,064) 8,682 116,074 0 1,028 18,180 177,200 (46,448) (155,767) (21,295) 2,971 39,721 0 38 681 19,153 (5,020) (16,836) (2,302) 3,823 51,115 0 179,656 (47,092) (157,926) (21,590) 79,688 1,065,387 0 62,194 (16,303) (54,672) (7,474) 6,928 92,630 0 748 (196) (658) (90) 314 4,200 0 23,304,170 3,921,213 1,147,323 0 (221,586) 11,249,044 1,892,790 478,392 0 (92,393) 1,459,215 245,531 57,678 0 (11,140) 10,468 1,761 842 0 (163) 6,735,869 1,133,393 342,389 0 (66, 127) 3,792,725 638,173 254,379 0 (49,129) 54,796 9,220 1,631 0 (315) 2,052 345 174 0 (34) 8,892 0 (1,717) 2,908 0 (562) 46,403,212 19,589,786 12,271,318 7,328,226 5,479,154 80,922 405,319 Op. Exp. NC - 3a 53,190 1, 105,298 85,651 70,226 1,242,200 18,965,872 (4,452,258) (13,886,585) (2,041, 180) 0 TOTAL WHOLESALE 347,294 213,960 3,784,644 0 2,485,985 0 36 0 (7) 15,907 (220,539) (2,610,226) 3,744,033 0 0 (7,244,545) (37,554) 4,348 (6,454,648) 6,726,633 0 (105,250) Page 9 of20 NCUC Form E-1 DUKE ENERGY PROGRESS, LLC Docket E-2, SUB 1142 Item No.14 Support COS Workpapers NORTH CAROLINA RETAIL COST OF SERVICE STUDY "PER BOOKS" WITHOUT CASH WORKING CAPITAL TEST YEAR ENDING December 31, 2016 Summer CP Demand Allocation with MINIMUM SYSTEM COS DETAIL- OPER. EXPENSE TOTAL SYSTEM NC RETAIL NC RES NC SGS NC SGSCLR NC MGS NC LGS NC SI NC TSS NC ALS NC SLS NC SFL OTHER RETAIL TOTAL WHOLESALE OTHER TAXES OT OT OT OT OT OT OT OT LABOR RELATED LABOR RELATED - DSM/EE LABOR RELATED - DERP PROPERTY TAX FED HEAVY VEHICLE USE TAX ELECTRIC EXCISE TAX- SC PRIVILEGE TAX PUC LICENSE TAX- SC 42,220,760 289,895 28,543 92,934,272 71,366 1,658,801 15,299,135 1,255,485 27,532,262 243,605 0 61,951,082 55,899 0 11,169,127 0 14,591,677 147,748 0 34,201,145 36,069 0 6,115,451 0 1,857,220 17,187 0 4,349,901 4,494 0 778,635 0 63,575 100 153,758,258 100,951,976 55,092,091 BOOK OPERATING EXPENSE SUMMARY: BOOK O&M EXPENSE BOOK DEPRECIATION EXPENSE BOOK OTHER AMORTIZATIONS BOOK OTHER TAXES 3,303,196,147 635,558,603 46,675,197 153,758,258 2,124,636,649 437,495,551 46,403,212 100,951,976 TOT OP EXPENSE BEFORE INC TAX - BOOK 4,139,188,205 OP INCOME BEFORE INC. TAX 1,126,567,817 BOOK OTHER TAXES 31,132 254 4,042,898 6,374 0 7,311,836 3,207 0 1,355,404 0 51,841 483 5,387 52 116,054 490 250,645 169 1,430 2 141,672 124 10,010 14 25,556 0 1,756 0 1,153,545 2,466 0 194,994 0 893,089 1,901 0 151,086 0 3,654 8 11,074 0 6,583,978 70,846 0 13,822,656 7,516 0 2,534,553 0 7,007,438 106,136 23,019,549 12,719,719 219,675 17,219 1,467,548 1,296,890 1,011,370,655 251,038,909 19,589,786 55,092,091 125,288,458 31,763,671 12,271,318 7,007,438 2,001,703 526,086 405,319 106,136 572,784,846 88,889,706 7,328,226 23,019,549 382,392,412 45,242,580 5,479,154 12,719,719 3,458,943 993,696 80,922 219,675 375,077 80,482 53,190 17,219 14,599,514 10,672,797 1,105,298 1,467,548 2,709,487,389 1,337,091,440 176,330,885 3,039,244 692,022,326 445,833,864 4,753,236 525,968 842,436,384 417,135,302 55,920,176 696,339 225,503,741 92,481,235 1,296,246 77,121 Op. Exp. NC - 4 4,498,582 46,290 28,543 9,528,192 8,550 1,658,801 0 1,222,803 21,454,997 6,917 0 4,130,008 32,682 5,712 16,991,761 35,814,521 12,282,802 8,253,889 85,651 1,296,890 82,239 33,736 4,348 5,712 343,409,454 65,307,769 (6,454,648) 16,991,761 835, 150,044 132,755,284 6,726,633 35,814,521 27,845,158 21,919,231 126,035 419,254,335 1,010,446,482 42,003,986 7,228,899 93,340 113,173,264 170,958,169 618 10,189,917 0 Page 10 of20 NCUC Form E-1 Item No.14 Support COS Workpapers DUKE ENERGY PROGRESS, LLC Docket E-2, SUB 1142 NORTH CAROLINA RETAIL COST OF SERVICE STUDY "PER BOOKS" WITHOUT CASH WORKING CAPITAL TEST YEAR ENDING December31, 2016 Summer CP Demand Allocation with MINIMUM SYSTEM COS DETAIL - OPER. EXPENSE TOTAL SYSTEM NC RETAIL NC RES NC SGS NC SGSCLR NC MGS NC LGS NC SI NC TSS NC ALS NC SLS NC SFL OTHER RETAIL TOTAL WHOLESALE ADDITIONAL TAX DEDUCTIONS TEMPORARY DIFFERENCES: TXD INTEREST CHARGES (253,989, 160) (165,498,616) (90,615,731) (11,537,434) (164,093) (37,555, 759) (20,083,701) (378,678) (26,015) (2,889,318) (2,238, 723) (9,165) (26,535,426) (61,955, 119) TOTAL OPERATING INTEREST DEDUCTIONi (253,989, 160) (165,498,616) (90,615,731) (11,537,434) (164,093) (37,555, 759) (20,083,701) (378,678) (26,015) (2,889,318) (2,238, 723) (9,165) (26,535,426) (61,955, 119) BOOK OPERATING INTEREST DEDUCTIONS (253,989, 160) (165,498,616) (90,615,731) (11,537,434) (164,093) (37,555, 759) (20,083,701) (378,678) (26,015) (2,889,318) (2,238, 723) (9,165) (26,535,426) (61,955, 119) 44,382,742 532,246 917,568 51,106 39,114,668 4,990,176 84,175 86,637,838 109,003,050 TAXABLE INCOME BEFORE SIT 872,578,657 676,937, 768 326,519,571 Op. Exp. NC - 5 187,947,982 72,397,534 Page 11 of20 DUKE ENERGY PROGRESS, LLC Docket E-2, SUB 1142 NORTH CAROLINA RETAIL COST OF SERVICE STUDY "PER BOOKS" WITHOUT CASH WORKING CAPITAL TEST YEAR ENDING December 31, 2016 NCUC Form E-1 Item No.14 Support COS Workpapers Summer GP Demand Allocation with MINIMUM SYSTEM COS DETAIL- OPER. EXPENSE TOTAL SYSTEM NC RETAIL NC RES NC SGS NC SGSCLR NC MGS NC LGS NC SI NC TSS NC ALS NC SLS NC SFL OTHER RETAIL TOTAL WHOLESALE CURRENT INCOME TAXES: TOTAL STATE INCOME TAX - PB (23,847, 119) (18,500,356) (8,923,609) (1,212,957) (14,546) (5, 136,520) (1,978,587) (25,077) (1,397) (1,068,983) (136,379) (2,300) (2,367,767) (2,978,996) FEDERAL INCOME TAX-PER BOOKS (53,582, 117) (41,568,469) (20,050,467) (2,725,395) (32,683) (11,541,253) (4,445,689) (56,345) (3,138) (2,401,900) (306,430) (5,169) (5,320, 138) (6,693,510) INVESTMENT TAX CREDITS: PRODUCTION RELATED TRANSMISSION RELATED DISTRIBUTION RELATED GENERAL RELATED HARRIS DISALLOW.- NCR HARRIS DISALLOW.- SCR HARRIS DISALLOW.- WHSLE HARRIS DISALLOW.-NCEMPA (4,269,886) (533,396) (658,770) (143,688) 213,807 27,137 47,773 12,129 (2,550,531) (312,313) (570,534) (103,680) 213,807 0 0 0 (1,231,155) (149,461) (395,053) (62,369) 103,206 0 0 0 (159,704) (19,388) (48,830) (7,878) 13,388 0 0 0 (1,146) (139) (1,241) (161) 96 0 0 0 (737,209) (89,496) (52,151) (18,423) 61,799 0 0 0 (415,096) (53,073) (14,554) (9,810) 34,797 0 0 0 (5,997) (728) (1,245) (210) 503 0 0 0 (225) (27) (175) (25) 19 0 0 0 (0) (0) (32,294) (2,569) 0 0 0 0 (0) (0) (24,890) (2,224) 0 0 0 0 (0) (0) (101) (10) 0 0 0 0 (416,820) (50,111) (86,052) (16,143) 0 27,137 0 0 (1,302,535) (170,972) (2,185) (23,866) 0 0 47,773 12,129 BOOK INVESTMENT TAX CREDITS (5,304,895) (3,323,250) (1,734,831) (222,412) (2,591) (835,480) (457,737) (7,677) (433) (34,863) (27,115) (111) (541,989) (1,439,655) ITC ITC ITCITC ITC ITC ITC ITC - Op. Exp. NC - 6 Page 12 of 20 NCUC Form E-1 Item No.14 Support COS Workpapers DUKE ENERGY PROGRESS, LLC Docket E-2, SUB 1142 NORTH CAROLINA RETAIL COST OF SERVICE STUDY "PER BOOKS" WITHOUT CASH WORKING CAPITAL TEST YEAR ENDING December31, 2016 Summer CP Demand Allocation with MINIMUM SYSTEM COS DETAIL - OPER. EXPENSE TOTAL SYSTEM NC RETAIL NC RES NC SGS NC SGSCLR NC MGS NC LGS NC SI NC TSS NC ALS NC SLS NC SFL OTHER RETAIL TOTAL WHOLESALE DEFERRED INCOME TAXES: BOOK DEFERRED INCOME TAXES 383,181,991 307,281,343 148,216,538 20, 146,591 241,602 85,314,945 32,863,304 416,510 23,198 17,755,262 2,265,183 38,209 39,327,384 36,573,264 BOOK DEFERRED INCOME TAXES 383,181,991 307,281,343 148,216,538 20, 146,591 241,602 85,314,945 32,863,304 416,510 23,198 17,755,262 2,265,183 38,209 39,327,384 36,573,264 4,439,636,065 2,953,376,657 1,454,599,070 192,316,712 3,231,026 759,824,018 471,815,156 5,080,648 544,199 42,094,673 23,714,491 156,664 450,351,824 1,035,907,584 TOTAL OPER EXPENSE - PB Op. Exp. NC - 7 Page 13 of 20 DUKE ENERGY PROGRESS, INC. Docket E-2, SUB 1142 NORTH CAROLINA RETAIL COST OF SERVICE STUDY "PER BOOKS" WITHOUT CASH WORKING CAPITAL TEST YEAR ENDING December 31, 2016 NCUC Form E-1 Item No.14 Support COS Workpapers Summer CP Demand Allocation with MINIMUM SYSTEM COS DETAIL- RATE BASE TOTAL SYSTEM NC RETAIL NC RES NC SGS NC SGSCLR NC MGS NC LGS NC SI NC TSS NC ALS NC SLS NC SFL OTHER RETAIL PRODUCTION PLANT IN SERVICE: PRODUCTION PLANT CONTRA AFUDC - WHS CONTRAAFUDC- NC RETAIL CONTRAAFUDC- SC RETAIL HARRIS DISALLOWANCE - NC HARRIS DISALLOWANCE - SC HARRIS DISALLOWANCE - WHS HARRIS DISALLOWANCE - PA 16, 192,459,020 9,812,753,051 (43,733,591) 0 (322, 147,308) (322,147,308) (36,350,250) 0 (387,936,216) (387,936,216) (52,556,762) 0 (86,024,692) (24,779,621) 4,736,667,016 614,435,865 0 0 (155,502, 184) (20, 171,593) 0 0 (187,258,832) (24,291,035) 0 0 4,407,953 0 (144,711) 0 (174,263) 0 2,836,291,560 0 (93, 113,898) 0 (112,129,614) 0 1,597,013,465 0 (52,429,077) 0 (63,136,141) 0 23,073,294 0 (757,484) 0 (912,177) 0 863,898 0 (28,361) 0 (34,153) 0 TOTAL PRODUCTION PLANT 15,238,930,581 9, 102,669,528 4,393,906,000 569,973,238 4,088,978 2,631,048,048 1,481,448,247 21,403,633 801,384 1,487,603,440 0 (0) 0 (0) 0 0 (0) 0 (0) 0 0 (0) 0 (0) 0 TOTAL WHOLESALE 1,576,510,452 4,803, 195,516 0 (43,733,591) 0 0 (36,350,250) 0 (52,556,762) 0 0 (86,024,692) (24,779,621) 4,648,657,613 TRANSMISSION PLANT IN SERVICE: TRANSMISSION PLANT - TRAN TRANSMISSION PLANT - PROD TRANS PLANT - OATI CONTRA TRANS PLANT -ADD FAG RETAIL TRANS PLANT -ADD FAG WHSLE/PA TRANSMISSION PLANT - FERG MIT REL 2,243,843,635 169,350,564 (5,208,306) 14,074,789 476,813 41,435, 105 1,327,686,185 102,627,727 0 12,383,552 0 640,881,038 49,538,938 0 83,134,469 6,426,143 0 596,405 46,101 0 383,756,230 29,663,659 0 216,079,290 16,702,536 0 12,383,552 0 3,121,865 241,315 0 116,887 9,035 0 213,305, 189 16,488, 103 0 1,691,237 0 702,852,261 50,234,734 (5,208,306) 0 476,813 41,435,105 TOTAL TRANSMISSION PLANT 2,463,972,599 1,442,697,464 690,419,976 89,560,612 642,506 413,419,889 245, 165,379 3,363,180 125,922 231,484,529 789,790,606 SUBSTATIONS: SUBSTATIONS - RETAIL SUBSTATIONS - ADD FAG RETAIL SUBSTATIONS - ADD FAG WHS 727,641,357 12,433,704 11,798,160 635,386,904 10,683,579 0 398,959,866 0 38,954,771 0 149,216 0 131,689,601 0 57,541,558 10,683,579 0 3,303,925 0 35,940 0 92,254,453 1,750,125 0 11,798,160 TOTAL DIST SUBSTATIONS 751,873,221 646,070,483 398,959,866 38,954,771 149,216 131,689,601 68,225, 137 3,303,925 35,940 3,243,775 1,060,917 447,335 94,004,578 11,798,160 OVERHEAD LINES: PRIMARY LINE LAND - CUSTOMER SECONDARY LINE LAND - CUSTOMER PRIMARY POLES - CUSTOMER PRIMARY POLES - DEMAND SECONDARY POLES - CUSTOMER SECONDARY POLES - DEMAND PRIMARY CONDUCTOR - GUST PRIMARY CONDUCTOR - DEMAND PRIMARY COND - ADDL FAG RETAIL PRIMARY COND - ADDL FAG WHSL SECONDARY COND - CUSTOMER 408,204, 143 103,971,695 172,778,773 7,386,788 693,713,705 103, 138,490 7,252,041 1,602,738 149,754,296 335,324,337 85,408,834 141,931,258 6,067,968 586,888,773 86,496,369 6,648,326 0 126,693,641 285,305,699 56,006,569 121,238,733 4,456,502 499,345,538 56,719,717 72 1,253,714 20,947 532,757 1,667 2, 194,266 21,214 0 219,246 463,810 38,898 12,142 383,727 469,716 0 208,665 5,045 88,671 401 365,209 5,110 0 455,366 0 36,234 0 461,164 0 372,300 148,933 158,206 11,851 651,604 150,829 0 18,455 62,798 0 475,561 9,286,342 18,434,818 3,475,209 1,114,389 16,253,070 18,669,554 1,319,903 0 3,102,114 57,334 4,342,020 0 108,222,648 38,602,581 5,468,528 16,398,783 434,781 67,562,712 5,538,160 210,826 0 14,638,224 34,722 79,151 72,879,806 18,562,862 30,847,515 1,318,820 106,824,932 16,642, 121 603,715 0 23,060,655 1,602,738 0 1,647,802,670 1,375,459,505 1,131,295,478 148,854,594 4,500, 126 71,655,400 14,014,532 1,622,261 752,252 952,764 1,634,946 177,150 270,740,427 1,602,738 557, 195,236 359, 175,503 288,904, 166 6,380,586 505,779,152 325,784,967 261,205,869 5,768,856 430,334,630 278,287,935 171,284,913 4,236,825 58,225,362 37,641,299 16,724,400 413,349 1,891,012 1,222,876 64,063 1,585 14,006,852 7,976,896 56,379,212 1,059,457 86,478 0 13,279,200 0 330,695 89,286 1,418,470 11,544 314,736 203,533 15,430 382 1,392,646 34,448 561,551 363,143 455,482 11,267 27,836 0 192,054 0 51,416,084 33,390,535 27,698,296 611,730 1,211,655,490 1,098,538,845 884, 144,304 113,004,411 3, 179,536 79,422,417 13,365,678 1,849,994 534,080 1,427,094 1,391,442 219,890 113, 116,645 DISTRIBUTION PLANT IN SERVICE TOTAL DIST OVERHEAD LINES UNDERGROUND LINES: U/G LINES - PRIMARY CUSTOMER U/G LINES - SECONDARY CUSTOMER U/G LINES - PRIMARY DEMAND U/G LINES - SECONDARY DEMAND TOTAL DIST UNDGRND LINES Rate Base NC - 1 100,346 4,397,308 5, 117,525 0 3,243,775 0 1,060,917 0 447,335 0 32,300 63,597 0 141,222 Page 14 of20 DUKE ENERGY PROGRESS, LLC NCUC Form E-1 Item No.14 Support COS Work.papers Docket E-2, SUB 1142 NORTH CAROLINA RETAIL COST OF SERVICE STUDY "PER BOOKS" WITHOUT CASH WORKING CAPITAL TEST YEAR ENDING December31, 2016 Summer CP Demand Allocation with MINIMUM SYSTEM COS DETAIL - RATE BASE TOTAL SYSTEM NC RETAIL NC RES NC SGS NC SGSCLR NC MGS NC LGS NC SI NC TSS NC ALS NC SLS NC SFL OTHER RETAIL TOTAL WHOLESALE LINE TRANSFORMERS: LINE LINE LINE LINE TRANS - DEMAND TRANS - CUSTOMER TRANS-ADDL FAC RET TRANS-ADDL FAC WHS 686,730,234 288, 199,924 4,732,838 608,854 614,942,708 258,146,302 4,350,782 0 406,232, 164 219,659,587 61 39,663,271 29,719,549 178,696 0 151,936 965,246 0 133,484,675 7,146,613 1,118,750 0 27,655,456 40,353 3,053,276 0 3,335,453 166,716 0 36,595 160,653 0 3,302,903 0 1,080,255 286,637 0 947 980,271,850 877,439,793 625,891,812 69,561,516 1,117,183 141,750,038 30,749,085 3,502,168 197,249 3,302,903 1,366,893 947 SERVICES - ALLOCATED 490,565,449 427,003,638 365,356, 110 49,418,164 1,605,478 10,472,634 117,220 34,032 63,561,811 TOTAL DIST SERVICES 490,565,449 427,003,638 365,356, 110 49,418,164 1,605,478 10,472,634 117,220 34,032 63,561,811 194,177,372 5,510,213 176,775,290 0 124,248,311 0 16,510,525 0 535,712 0 30,989,515 0 3,692, 193 0 726,523 0 11,356 0 124,248,311 16,510,525 535,712 30,989,515 3,692, 193 726,523 11,356 TOTAL DIST LINE TRNSFRMS 71,787,526 30,053,622 382,056 0 608,854 102,223,203 608,854 SERVICES: METERS: METERS - RETAIL METERS-WHS 61,155 0 61,155 17,402,082 0 5,510,213 17,402,082 5,510,213 TOTAL DIST METERS 199,687,585 176,775,290 STREET LIGHTS AREA LIGHTS 259, 172,084 345,246,818 216,945,853 279,629,280 279,629,280 216,945,853 0 DISTR PLANT SUBTOTAL 5,886,275,167 5,097,862,687 3,529,895,882 436,303,981 11,087,250 465,979,604 130,046,626 11,122,092 1,564,908 288,555,816 222,400,050 906,477 768,892,515 19,519,965 TOTAL DISTRIBUTION PLANT 5,886,275,167 5,097,862,687 3,529,895,882 436,303,981 11,087,250 465,979,604 130,046,626 11,122,092 1,564,908 288,555,816 222,400,050 906,477 768,892,515 19,519,965 0.19% 0.03% 4.90% 3.78% 42,226,231 65,617,538 0.02% 13.06% 0.33% GENERAL PLANT: GENERAL GENERAL GENERAL GENERAL PLANT-PROD PLANT - T/D PLANT - CUST/SALES PLANT - LABOR 29,751,016 295,925,323 20,275,575 267,070,064 18,029,341 231,791,610 18,048,101 174,462,295 8,702,857 149,564,225 15,355,393 92,462,345 1,128,926 18,636,171 2,077,623 11,768,552 8,099 415,692 67,476 197,273 5,211,225 31,165,133 499,865 41,720,363 2,934,253 13,297, 178 3,682 25,618,430 42,393 513,345 11,800 328,496 1,587 59,922 11,231 34,134 10,226,160 0 735,391 7,881,659 20,038 1,588,248 32,125 993 9,062 2,896,582 35,452,469 2,227,474 28,295,520 8,825,092 28,681,244 0 64,312,249 TOTAL GENERAL PLANT 613,021,977 442,331,347 266,084,820 33,611,273 688,540 78,596,586 41,853,543 896,035 106,874 10,961,551 9,489,945 42,180 68,872,046 101,818,585 TOTAL TANGIBLE PLANT 24,202,200,325 16,085,561,026 8,880,306,678 1,129,449,104 16,507,275 3,589,044,127 1,898,513,794 36,784,940 2,599,088 299,517,367 231,889,995 948,658 2,556,852,530 5,559,786,769 408,346,327 271,400, 107 149,831,030 19,056,383 278,515 60,555,361 32,032,258 620,646 43,853 5,053,541 3,912,513 16,006 43,139,935 93,806,285 24,610,546,652 16,356,961, 133 9,030, 137,708 1, 148,505,487 16,785,790 3,649,599,488 1,930,546,053 37,405,586 2,642,941 304,570,909 235,802,508 964,664 2,599,992,465 5,653,593,054 INTANGIBLE PLANT: INTANGIBLE PLT BOOK PLANT IN SERVICE Rate Base NC - 2 Page 15 of20 NCUC Form E-1 DUKE ENERGY PROGRESS, LLC Docket E-2, SUB 1142 NORTH CAROLINA RETAIL COST OF SERVICE STUDY "PER BOOKS" WITHOUT CASH WORKING CAPITAL TEST YEAR ENDING December 31, 2016 Item No.14 Support COS Work.papers Summer CP Demand Allocation with MINIMUM SYSTEM COS DETAIL - RATE BASE TOTAL SYSTEM NC RETAIL NC RES NC SGS NC SGSCLR NC MGS NC LGS (2,049,722,578) (6,325,316) 0 (265,888,031) (820,514) 0 (1,907,476) (5,886) (1,227,363,214) (3,787,566) 0 0 219,434,855 0 105,922,348 0 13,740,145 0 98,572 63,425,751 0 0 244,840,629 0 118,185,847 0 15,330,954 0 109,984 70,769,070 0 0 NC SI NC TSS NC ALS NC SLS NC SFL OTHER RETAIL TOTAL WHOLESALE RESERVE FOR DEPRECIATION PRODUCTION FUNCTION: DPR PRODUCTION RELATED DPR NUCLEAR DECOMM. - PROD DPR RATE DIFF SC RETAIL-PROD DPR RATE DIFF WHOLESALE-PROD DPR RATE DIFF. NCEMPA -PROD DPR CONTRA AFUDC NC RET-PROD DPR CONTRA AFUDC SC RET-PROD DPR CONTRA AFUDC WHS - PROD DPR HARRIS DISALLOW. - NC DPR HARRIS DISALLOW. - SC DPR HARRIS DISALLOW. - WHS DPR HARRIS DISALLOW. - NCEMPA DPR OTHER NC RETAIL SPECIFIC - PROD DPR OTHER SC RETAIL SPECIFIC - PROD (7,007,047,095) (15,761,095) 26,742,417 8,753,772 3,300,361 219,434,855 22,653,960 28,774,328 244,840,629 31,161,970 47,999,423 15,147,842 (365,935,984) (67,697,865) (4,246,323,716) (13,103,890) 0 (365,935,984) 0 (176,639,206) 0 (22,913,467) 0 TOTAL PRODUCTION RESERVE (691,083,951) (2,132,642) 0 (9,984,627) (30,812) 0 (373,839) (1,154) 0 (0) (0) (0) (0) (0) (0) 35,712,752 0 515,970 0 19,319 0 39,847,511 0 575,708 0 21,555 0 0 (32,216) 0 0 0 0 (0) (0) (0) 0 (164,381) (105,770,637) 0 0 (59,555,630) 0 0 (860,446) 0 (682,211,576) 0 26,742,417 0 22,653,960 0 31,161,970 0 (2,078,511,803) (2,657,205) 0 8,753,772 3,300,361 0 28,774,328 0 47,999,423 15,147,842 0 (67,697,865) (6,807,632,483) (4,161,088,107) (2,008,578,905) (260,550,914) (1,869,188) (1,202,726,596) (677,211,961) (9,784,207) (366,335) (0) (0) (0) (669,351,094) (1,977, 193,282) TRANSMISSION FUNCTION: DPR TRANS RELATED - PROD DPR TRANS RELATED - TRANS DPR CONTRA AFUDC - OATT DPR TRANS RELATED - FERG MIT REL (54,258,643) (734,360,395) 1,242,125 (2,061,323) (32,881, 150) (434,518,309) 0 (15,871,902) (209,744,251) 0 (2,058,888) (27,207,821) 0 (14,770) (195,188) 0 (9,504,012) (125,593,766) 0 (5,351,367) (70,717,319) 0 (77,315) (1,021,708) 0 (2,895) (38,254) 0 (0) (0) (0) (5,282,664) (69,809,426) 0 (16,094,830) (230,032,660) 1,242,125 (2,061,323) TOTAL TRANSMISSION RESERVE (789,438,236) (467,399,459) (225,616, 154) (29,266,709) (209,959) (135,097,779) (76,068,686) (1,099,023) (41,149) (0) (0) (0) (75,092,090) (246,946,688) DISTRIBUTION FUNCTION: DPR DISTRIBUTION RELATED (2,899,918,382) (2,511,500,957) (1,739,030, 144) (214,948,486) (5,462,218) (229,568,408) (64,068,463) (5,479,384) (770,964) (142,159,225) (109,567,082) (446,583) (378,800,765) (9,616,660) TOTAL DISTRIBUTION RESERVE (2,899,918,382) (2,511,500,957) (1,739,030, 144) (214,948,486) (5,462,218) (229,568,408) (64,068,463) (5,479,384) (770,964) (142,159,225) (109,567,082) (446,583) (378,800,765) (9,616,660) GENERAL FUNCTION: DPR GENERAL RELATED (243,873,864) (175,969,311) (105,854,497) (13,371,317) (273,917) (31,267,481) (16,650,276) (356,463) (42,517) (4,360,750) (3,775,313) (16,780) (27,398,841) (40,505,712) TOTAL GENERAL RESERVE (243,873,864) (175,969,311) (105,854,497) (13,371,317) (273,917) (31,267,481) (16,650,276) (356,463) (42,517) (4,360,750) (3,775,313) (16,780) (27,398,841) (40,505,712) (10,695) (28,826,823) (62,682,922) INTANGIBLE: TOTAL LIMITED TERM PLT RESERVE BOOK DEPRECIATION RESERVE BOOK NET PLANT IN SERVICE (272,863,816) (181,354,071) (100,119,590) (12,733,792) (186,109) (40,464, 101) (21 ,404,489) (414,726) (29,303) (3,376,860) (2,614,406) (11,013,726,781) (7,497,311,904) (4,179,199,291) (530,871,218) (8,001,390) (1,639,124,365) (855,403,874) (17,133,803) (1,250,268) (149,896,836) (115,956,801) 13,596,819,871 8,859,649,228 4,850,938,417 617,634,269 8,784,400 2,010,475,123 1,075,142,178 20,271,783 1,392,673 154,674,073 119,845,707 Rate Base NC - 3 (474,059) (1, 179,469,613) (2,336,945,263) 490,605 1,420,522,852 3,316,647,791 Page 16 of20 NCUC Form E-1 Item No.14 Support COS Workpapers DUKE ENERGY PROGRESS, LLC Docket E-2, SUB 1142 NORTH CAROLINA RETAIL COST OF SERVICE STUDY "PER BOOKS" WITHOUT CASH WORKING CAPITAL TEST YEAR ENDING December 31, 2016 Summer CP Demand Allocation with MINIMUM SYSTEM COS DETAIL- RATE BASE TOTAL SYSTEM NC RETAIL NC RES NC SGS NC SGSCLR NC MGS NC LGS NC SI NC TSS NC ALS NC SLS NC SFL OTHER RETAIL TOTAL WHOLESALE PLANT HELD FOR FUTURE USE BOOK NUCLEAR FUEL INVENTORY 439,388,832 267,193,068 111,409,941 13,432,377 DFTR PRODUCTION RELATED DFTR NC CLEAN AIR DFTR POLLUTION CNTL DEFERRAL DFTR GRIDSOUTH REG ASSET DFTR ENERGY RELATED DFTR LABOR RELATED DFTR ALL PLANT RELATED DFTR UNCOLLECTIBLE ACCOUNTS DFTR - UNBILLED REV DFTR DSM/EE DFTR TRANSMISSION RELATED DFTR DISTRIBUTION RELATED DFTR GENERAL PLANT RELATED DFTR INTANGIBLE PLANT RELATED DFTRREPS DFTRSCDERP NC RETAIL SPECIFIC SC RETAIL SPECIFIC NC RETAIL- HARRIS ACCELERATED DEPR UNWIND SC RETAIL - HARRIS ACCELERATED DEPR UNWIND (2,248,338,685) 37,177,483 (13,262,607) (1,362,385) (77,674,320) (80,285,549) 49,375,780 2,211,834 17,747,709 (97,394,652) (409,691,317) (547,855,407) (106,839,034) (31,823,958) 32,046,063 (206,615) (41,750,878) (23,292,131) 135,615,660 25,088,789 (1,341,434,627) 37,177,483 0 (647,517,483) 17,945,765 0 (83,995,342) 2,327,907 0 (47,233,881) (52,446, 167) 32,173,118 1,968,842 15,270,958 (84, 702,528) (236,303,272) (474,475,208) (77,090,636) (21,151,226) 32,046,063 0 (41,750,878) 0 135,615,660 0 (19,694,837) (27,795,665) 17,615,801 1,675,098 8,093,374 (51,372,532) (113,085,732) (328,539,269) (46,373,941) (11,676,893) 15,606,454 0 (22,859,928) 0 65,462,385 0 BOOK ACCUM DEFERRED INC TAX (3,380,514,220) (2, 122,336,299) (1,142,517,404) 196,042 79,736,906 59,240,846 (387,730,099) 10,745,830 0 (218,316,832) 6,050,590 0 (2,37 4,550) (3,537,816) 2,242,890 226,645 1,030,120 (5,976,062) (14,669,372) (40,608,277) (5,857,858) (1,485,135) 11,169,469 0 (2,910,586) 0 8,491,717 0 (602,581) 16,700 0 0 (34,656) (59,303) 31,900 7,361 17,268 (88,367) (105,238) (1,031,928) (120,000) (21,706) 395,844 0 (41,396) 0 60,919 0 (14,095,738) (12,541,811) 7,300,882 54,530 3,651,849 (24,633,358) (67,715,148) (43,370,287) (13,698,013) (4,719,306) 3,464,271 0 (9,474,314) 0 39,198,536 0 (135,926,250) (1,575,183) (513,562,178) 379,745 40,610 2,070,867 677,302 8,431 45,283,160 126,912,604 (219,223,906) 0 (13,262,607) (1,362,385) (8,005,071) (8,506,088) 5,158,517 242,992 2,476,751 (12,692, 124) (37,915,469) (71,563,410) (12,003, 196) (3,362,057) 0 (206,615) 0 (23,292,131) 0 25,088,789 (687,680,152) 0 (378,428,009) (879,749,912) ACCUM DEFERRED INCOME TAXES: Rate Base NC - 4 (10,472,484) (7,701,311) 3,904,294 402 2,242,421 (2,216,263) (40,156,292) (12,103,876) (7,294,342) (2,496,394) 119,541 0 (5,066,581) 0 22,071,281 0 (3, 154, 193) 87,418 0 0 (67,131) (98,751) 73,615 1,287 28,754 (167,913) (550,864) (1,035,170) (156,163) (48,369) 40,908 0 (95,530) 0 318,881 0 (118,098) 3,273 0 0 (7,179) (10,261) 5,057 1,225 2,988 (18,149) (20,625) (145,651) (18,626) (3,418) 52,642 0 (6,563) 0 11,939 0 (271,435,847) (4,823,223) (271,445) (0) 0 (0) 0 (0) 0 0 (366,084) (221,070) 561,687 0 64,370 (170,240) (0) (26,856,859) (1,910,407) (393,841) 1,097,212 0 (728,898) 0 0 (119,732) (477,453) 435,210 2,186 139,022 (58,935) (0) (20,699,520) (1,653,932) (304,917) 95,397 0 (564,770) 0 0 (1,490) (2,724) 1,782 108 793 (709) (0) (84,369) (7,351) (1,247) 4,326 0 (2,312) 0 (28,924,131) (23,207,444) (93,195) (22,435,368) (19,333,295) 12,044,145 0 (135,472,576) (1,816,789) (17,745,203) (7,310,675) 0 Page 17 of20 DUKE ENERGY PROGRESS, LLC Docket E-2, SUB 1142 NORTH CAROLINA RETAIL COST OF SERVICE STUDY "PER BOOKS" WITHOUT CASH WORKING CAPITAL TEST YEAR ENDING December 31, 2016 NCUC Form E-1 Item No.14 Support COS Work.papers Summer CP Demand Allocation with MINIMUM SYSTEM COS DETAIL - RATE BASE TOTAL SYSTEM NC RETAIL NC RES NC SGS NC SGSCLR NC MGS NC LGS 156,015 312,543 0 15,808 0 35,707,075 66,098,318 0 10,171,665 0 (1,068,119) 238,443 225 0 (864) 0 (126,411) (9,347,757) 66,469,007 91,603 0 (351,468) 0 (51,415,668) 19,095,080 40,587,737 0 5,727,298 0 0 (322,563) 5,980,216 68,057 0 (261,125) 0 (38,199,472) (472,359) 117,422,775 32,675,228 NC SI NC TSS NC ALS NC SLS NC SFL OTHER RETAIL TOTAL WHOLESALE REGULATORY ASSETS: RASFAS 109 RASFAS 158 RA MAYO 2 ABANDONMENT-WHS RA PRODUCTION REL RA GRIDSOUTH RASC DERP RA REPS DEFERRAL RA DSM/EE DEFERRAL RA PSNC PIPELINE RA POLLUTION CNTL DEFERRAL - SC RA EMISSION ALLOWANCE PROCEEDS - NCR RA OTHER SC RETAIL REG ASSETS (LIABILITIES) RA OTHER NC RETAIL REG ASSETS (LIABILITIES) BOOK REGULATORY ASSETS 241,486,535 423,123,884 7,185,543 39,233,406 3,676,168 557,517 (86,470,958) 262,803,224 504,778 35,786,934 (1,177,746) 13,843,477 (172,290,485) 157,351,941 276,403, 737 0 35,191,037 0 86,155,169 146,489,749 0 16,986,897 0 10,969,503 18,645,128 0 2,203,524 0 (86,470,958) 228,555,643 306,956 0 (1,177,746) 0 (172,290,485) (42,111,414) 138,620,209 127,990 0 (491,078) 0 (71,838,963) (30, 138,950) 16,125,407 15,431 0 (59,208) 0 (8,661,418) 768,262,277 437,870, 125 273,938,558 9,099,418 Rate Base NC - 48 360,037 520,442 0 82,747 0 0 (110,382) 453,085 436 0 (1,674) 0 (244,866) 24,735 54,080 0 3,098 0 0 (142,046) 48,973 47 0 (179) 0 (26,186) 1,059,826 (37,480) 2,747,091 1,165,092 0 (2,960,643) 459,364 2,379 0 (9,128) 0 (1,335,329) 68,827 2,128,522 2,516,290 0 8,713 14,358 0 0 (257,412) 159,026 778 0 (2,985) 0 (436,736) 0 (11,672) 1,913 10 0 (37) 0 (5,437) 4,107,483 7,849 25,229,219 44,829,100 0 998,923 3,676,168 557,517 0 34,247,581 52,022 35,786,934 0 13,843,477 0 58,905,376 101,891,047 7,185,543 3,043,446 0 159,220,941 171,171,211 145,800 0 Page 18 of20 NCUC Form E-1 Item No.14 Support COS Workpapers DUKE ENERGY PROGRESS, LLC Docket E-2, SUB 1142 NORTH CAROLINA RETAIL COST OF SERVICE STUDY "PER BOOKS" WITHOUT CASH WORKING CAPITAL TEST YEAR ENDING December 31, 2016 Summer CP Demand Allocation with MINIMUM SYSTEM TOTAL SYSTEM NC RETAIL OR LABOR RELATED OR COAL MINES & ENERGY RELATED (100,343,225) (2,370,296) (65,548,752) (1,441,381) (34,739,835) (601,004) (4,421,665) (72,461) (74,119) (1,058) (15,675,122) (430,143) (9,625,324) (319,576) BOOK OPERATING RESERVES (102,713,521) (66,990,132) (35,340,839) (4,494,127) (75,177) (16,105,265) TOTAL OPERATING RESERVES (102,713,521) (66,990,132) (35,340,839) (4,494,127) (75,177) (16,105,265) 813,522,239 2,300,332 84,448,864 262,286,714 540,693,055 1,398,836 84,448,864 159,496,980 298,498,768 583,264 41,126,653 66,504,529 37,964,811 70,323 29,434,161 8,018,260 554,868 1,026 1,043,141 117,024 120,640,569 417,447 9,129,163 47,597,776 1,162,558,149 786,037,734 406,713,214 75,487,555 1,716,060 177 ,784,954 27,358,452 84,121,028 49,006,471 153,031,702 2,936,284 39,797,537 6,643,127 (141,048,805) (26,980,469) 0 24,794,746 84,121,028 0 153,031,702 1,779,410 25,931,962 4,328,643 (121,384,365) (23,366,683) 0 13,575,909 69,188,324 0 73,869,200 858,931 14,198,570 2,370,069 (103,274,283) (16,179,714) 0 1,728,520 9,103,722 0 9,582,241 111,420 1,807,799 301,763 (13,973,271) (1,999,853) 0 24,584 275,221 0 68,743 799 25,712 4,292 (453,816) (50,820) 0 194,865,327 1,357,423,476 149,236,444 935,274,178 54,607,006 461,320,220 6,662,342 82,149,897 (105,285) 1,610,775 12,678,666,714 8,310,660,167 4,519,748,894 581 ,895,584 8,468,498 COS DETAIL - RATE BASE NC RES NC SGS NC SGSCLR NC MGS NC LGS NC SI NC SFL OTHER RETAIL TOTAL WHOLESALE NC TSS NC ALS NC SLS (123,422) (2,049) (12,825) (219) (276,300) (11,171) (596,735) (3,654) (3,405) (45) (10,631,157) (244,281) (24,163,316) (684,634) (9,944,900) (125,471) (13,044) (287,471) (600,388) (3,450) (10,875,438) (24,84 7 ,950) (9,944,900) (125,471) (13,044) (287,471) (600,388) (3,450) (10,875,438) (24,84 7 ,950) 63,815,817 310,144 315,020 35,362,954 1,236,473 1,988 107,801 226,683 87,365 213 138,724 24,242 10,067,847 10,842 2,891,409 1,236,173 7,794,649 3,546 251,392 404,306 31,888 44 11,399 5,033 85,944,929 237,071 0 27,031,118 186,884,255 664,425 0 75,758,616 99,803,934 1,572,945 250,543 14,206,271 8,453,894 48,364 113,213,118 263,307 ,297 1,794,934 0 870,995 9,707,742 1,620,446 0 (89,472) 0 OPERATING RESERVES: WORKING CAPITAL: MATERIALS AND SUPPLIES: WC MAT.& SUP PLUS STORES EXP WC EMISSION ALLOWANCES WC EMISSION ALLOWANCE PROCEEDS - REPS WC FUEL INVENTORY BOOK MATERIALS & SUPPLIES MATERIAL & SUPPLIES ADJUSTMENTS: CASH WORKING CAPITAL: WC DEFERRED DEBITS WC DEFERRED DEBITS-NC RET STORM WC DEFERRED DEBITS-SC RET STORM WC PRODUCTION RELATED WC PRELIMINARY SURVEY CHARGES WC UNAMORTIZED DEBT EXPENSE WC UNAMORTIZED LOSS ON REACQ DEBT WC CUSTOMER DEPOSITS - INPUT WC CUST ADV FOR CONSTRUCTION WC CASH ALLOW LEAD/LAG BOOK CASH WORKING CAPITAL BOOK WORKING CAPITAL BOOK RATE BASE Rate Base NC - 5 5,626,546 4,382,336 0 44,232,492 514,323 5,884,608 982,277 (3,361,894) (2,135,875) 0 3,008,909 857,108 0 24,905,721 289,597 3,146,913 525,292 (24,762) (596,085) 0 56,733 99,215 0 359,832 4,184 59,335 9,904 (79,362) (50,979) 0 3,898 46,007 0 13,473 157 4,076 680 (75,532) (7,173) 0 432,873 58,270 0 335,402 99,991 0 1,373 10,834 0 452,727 75,571 (0) (1,322,631) 0 350,785 58,554 (134,764) (1,019,398) 0 1,436 240 (6,680) (4,155) 0 768,772 0 49,006,471 0 285,879 4,157,833 694,038 (19,664,440) (3,524,314) 0 (303,191) 13,903,080 (309,430) 8,144,463 3,048 51,412 31,724,240 144,937,357 13,904,644 277,211,941 108,967,123 461,651 1,380,660,862 2,987,345,685 56,124,814 233,909,768 32,112,693 131 ,916,627 458,862 2,031,807 (14,415) 236,128 1,911,877,129 1,017,594,133 18,794,468 1,347,442 141 ,505,244 Page 19 of20 NCUC Form E-1 Item No.14 Support COS Workpapers DUKE ENERGY PROGRESS, LLC Docket E-2, SUB 1142 NORTH CAROLINA RETAIL COST OF SERVICE STUDY "PER BOOKS" WITHOUT CASH WORKING CAPITAL TEST YEAR ENDING December 31, 2016 Summer CP Demand Allocation with MINIMUM SYSTEM COS DETAIL - LABOR TOTAL SYSTEM NC RETAIL NC RES NC SGS NC SGSCLR NC MGS NC LGS NC SI NC TSS NC ALS NC SLS NC SFL OTHER RETAIL TOTAL WHOLESALE DEVELOP LABOR FACTOR PRODUCTION LABOR: LABOl LABOR-PROD DEMAND REL LAB02 LABOR-PROD ENERGY REL 218,798,281 174,472,404 132,S93,419 106,096,9S4 64,003,S34 44,238,631 8,302,477 S,333,72S S9,S62 77,844 38,324,983 31,661,910 21,S79,416 23,S23,340 311,77S lS0,789 11,673 16,126 822,299 268,943 3,348 21,302,371 17,981,02S 64,902,491 S0,394,424 TOTAL PRODUCTION LABOR 393,270,68S 238,690,373 108,242,16S 13,636,201 137,406 69,986,893 4S,102,7SS 462,S64 27,799 822,299 268,943 3,348 39,283,397 11S,296,91S TRANSMISSION LABOR: LAB04 LABOR-TRANS PROD REL LABOS LABOR-TRANS PST REL 1,108,328 lS,017,340 671,6SS 8,88S,700 324,212 4,289,173 42,0S6 SS6,387 302 3,992 194,136 2,S68,33S 109,311 1,446,137 1,S79 20,893 S9 782 107,908 1,427,S71 328,76S 4,704,069 TOTAL TRANSMISSION LABOR 16,12S,668 9,SS7,3SS 4,613,38S S98,444 4,293 2,762,471 1,SSS,448 22,473 841 1,S3S,478 S,032,83S LAB12 LOAD DISPATCH LAB13 LABOR-SUBSTATION LAB20 LABOR-OVERHEAD LINE LAB2S LABOR-UNDERGROUND LINE LAB26 LABOR-LINE TRANSFORMR LAB34 LABOR-METER LAB3S LABOR-STREET LIGHT LAB361LABOR-CUST INSTALLATNS LAB39 LABOR-RENTS LAB38 LABOR-MISCELLANEOUS 378,304 4,849,091 3,180,410 34,910,931 3,300,606 637,9S8 S,421,SS6 2,690,231 1,S23,339 47,189 9,7S3,337 327,633 4,166,732 2,732,867 29,140,972 2,992,471 S71,03S 4,799,483 2,2Sl,918 1,3SS,98S 39,428 8,446,967 226,862 2,S73,030 1,687,S93 23,968,027 2,408,4SO 407,329 3,373,36S 28,041 2Sl,233 164,778 3,1S3,686 307,829 4S,270 448,264 713 962 631 9S,341 8,661 727 14,S4S 29,948 849,312 SS7,04S 1,S18,117 216,3SO 92,2Sl 841,371 8,3S8 440,008 288,S91 296,917 36,409 20,011 100,244 71S 21,308 13,976 34,370 S,039 2,279 19,72S 101 232 1S2 lS,937 l,4SS 128 308 1,2SS 76,090 49,906 33,9S6 o o o o o o 1,1S3,678 32,429 S,848,90S 1S6,09S 4,267 722,939 S,070 129 18,371 37,SS6 2,0S4 772,111 277 402 21S,482 887 47 18,429 TOTAL DISTRIBUTION LABOR 66,692,9S2 S6,82S,492 41,679,668 S,282,403 14S,1SO 4,916,114 1,406,698 CUSTOMER ACCOUNTING LABOR DISTRIBUTION LABOR: LAB442 LABOR-SUPERVISION&ENGINEERING 18,S4S 20,920 13,721 20,186 3,887 2,lSO 14,293 6,842 4,488 34,639 3,790 890 S8 2,88S 1,892 3,7S3 S99 1 1,660 844 22 2,S93 27 478,126 2,2Sl,918 1,SOS 47 368,S09 1,S02 49,416 606,268 397,638 S,736,003 308,13S 66,S27 472,470 438,312 167,3S4 7,761 1,274,026 116,774 21,772 SS7,S63 2,686,921 12,430 9,S23,909 7S s 396 149,603 o 32,344 343,SSl 18,SSl,349 16,S13,328 14,0S0,07S 1,901,011 61,740 4S7,416 3,467 10,797 10,047 17,867 909 2,038,017 SALES LABOR 3,799,S68 3,382,147 2,877,S44 389,339 12,64S 93,673 690 2,211 2,lOS 3,7SS 186 417,420 CUST SERV & INFO LABOR 2,680,907 2,386,383 2,030,344 274,711 8,922 66,094 487 1,S60 l,48S 2,649 131 294,S24 ADMIN & GENERAL LABOR: LAB61 LABOR-A&G LABOR REL 121,316,919 79,249,721 42,001,139 S,34S,880 89,611 18,9Sl,S28 11,637,20S 149,220 1S,S06 334,0S2 721,464 4,117 12,8S3,276 29,213,922 TOTAL ADMIN & GEN LABOR 121,316,919 79,249,721 42,001,139 S,34S,880 89,611 18,9Sl,S28 11,637,20S 149,220 1S,S06 334,0S2 721,464 4,117 12,8S3,276 29,213,922 TOTAL LABOR EXPENSE 622,438,048 406,604,800 21S,494,319 27,427,988 4S9,767 97,234,189 S9,706,749 76S,S99 79,SS4 1,713,914 3,701,S99 21,121 6S,946,023 149,887,224 Labor NC Page 20 of 20 E-1 Item 14 Duke Energy Progress, LLC Docket E-2, SUB 1142 Cash Working Capital for NC Retail Operations - Lead Lag Summary For the test period ended December 31, 2016 Dollars in Thousands Summer Winter Peaking & Average (SWP&A) Demand Allocation with MINIMUM SYSTEM Line No Actual Annual Ex1:1ense [AJ Descri1:1tion Lead (Lag) Weighted Amount [CJ ~ [BJ Calculation of NC Retail Amount: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 Total Revenue Lag 38.17 Operation & Maintenance Expense Depreciation and Amortization Taxes Other Than Income Taxes Interest on Customer Deposits Net Income Taxes ITC Income for Return Total Requirements (Sum L3 through L9) $ $ 2,126,178 484,826 101,219 8,662 246,073 (3,335) 588 341 3,551,963 Revenue Lag Days (L 1) Requirements Lead Days (-L 10) Net Lag Days (L 12+L13) Daily Requirements (Line 9, Col. A divided by 365) Estimated Cash Working Capital Requirements (L 14xL15) Add: Cash Working Capital Related to NC Sales Tax Total Cash Working Capital Requirements (L 17 + L 18) 26.27 0.00 96.45 137.50 -8.87 0.00 25.55 22.43 $ 9,762,944 1,191,003 (2,182,308) $ 15033715 79,662,536 $ 9,731 $ 153,172 1 105 154 278 38.17 -22.43 15.74 $ Calculation of Total Company and Jurisdictional Amounts: NC Retail: Cash Working Capital allocated at NB_PLT Factor Total Company Cash Working Capital Requirements (L 19 / L22) 55,857,182 65.3388% $ NC Retail Factor SC Retail Factor NC Wholesale Factor SC Wholesale Factor NCEMPA Factor Total (Sum L26 through L30) 236,120 65.3388% 0.0000% 0.0000% 0.0000% 0.0000% 65.3388% NC Retail Cash Working Capital Requirement (L24 x L26) SC Retail Cash Working Capital Requirement (L24 x L27) NC Wholesale Cash Working Capital Requirement (L24 x L28) SC Wholesale Cash Working Capital Requirement (L23 x L29) NCEMPA Cash Working Capital Requirement (L24 x L30) Total Company Cash Working Capital Requirement (Sum L33 through L37) Item 14 Lead Lag Summary $ 154,278 $ 154 278 Page 1 of 20 Duke Energy Progress, LLC Docket E-2, SUB 1142 Cash Working Capital for NC Retail Operations - Lead Lag Summary Detail For the test period ended December 31, 2016 Summer Winter Peaking & Average (SWP&A) Demand Allocation with MINIMUM SYSTEM Total 12 ME Line Dec No. Total Utility 01:1erating Revenue and Ex1:1ense Line Descri1:1tion 2016 OPERATING REVENUES: 1 2 Sales of Electricity: 3 RETAIL SALES OF ELECTRICITY (3,845, 170,805) REV-REPS 4 (33,231,855) REV-DERP 5 (392,614) REV UNBILLED REVENUES (21,599,287) 6 REV - SALES FOR RESALE D/A (1,062,135,775) 7 REV - SALES FOR RESALE CREDIT - TRANSMISSION (511,520) 8 9 REV - SALES FOR RESALE CREDIT - ENERGY (163,720,920) 10 REV - SALES FOR RESALE CREDIT - DEMAND (7,830,000) 11 REV - PROV FOR RATE REFUND (699,832) 12 13 Total Sales of Electricity (Sum L3 through L 12) (5, 135,292,608) 14 15 Other Revenues: (7,752,736) 16 REV - FORFEITED DISCOUNTS (450) AS INPUT 17 REV- MISC SERVICE REVENUES (451) (7,790,254) (3,961,334) 18 REV - RENT (454) - DIST PLT REL (11,433,409) 19 REV - RENT (454) - DIST POLE RENTAL REV (640,499) 20 REV - RENT (454) - TRANS PLT REL 21 REV - RENT (454) - ADD FAC - WHLS (3,535,448) 22 REV - RENT (454) - ADD FAC - RET x LIGHTING (6,509,841) 23 REV - RENT (454) - ADD FAC - LIGHTING (3,890,020) 24 REV - RENT (454) - OTHER (7,321,012) (1,306,803) 25 REV - OTHER ELEC REV (456) - PROD PLT REL 26 REV - OTHER ELEC REV (456) - TRANS REL (6,679,366) 237,259 27 REV - OTHER ELEC REV (456) - GEN PLT REL 28 REV - OTHER ELEC REV (456) - WH D/A (60,496,765) (923,037) 29 REV - OTHER ELEC REV (456) - OTHER 30 REV - OTHER ELEC REV (456) - REPS (57,084) 31 REV - OTHER ELEC REV (456) - OTHER ENERGY (2,692,558) 32 REV - OTHER ELEC REV (456) - DIS PLT REL (5,906,547) 33 REV - OTHER NC RETAIL SPECIFIC 196,040 34 Total Other Revenues (L 16 through L33) (130,463,414) 35 36 Utility Oper Revenues (L 13 + L34) (5,265, 756,0221 37 38 OPERATION AND MAINTENANCE EXPENSE: 39 Fuel Used in Electric Generation 40 OM PROD ENERGY - FUEL 1,283,796,622 42 43 Fuel Used in Elec Gen (Sum L40 through L42) 1,283,796,622 44 45 Purchased Power 46 OM PROD PURCHASES - CAPACITY COST 114,486,004 371,095,580 47 OM PROD PURCHASES - ENERGY COST 41 OM DEFERRED FUEL EXPENSE 60,755,982 Purchased Power - Acct 555 & Def Fuel Acct 557 (Sum L46 546,337,566 48 through L47) 49 50 O&M Other than Fuel and Purchased Power 51 52 TOTAL LABOR EXPENSE 622,438,048 53 4,705,805 54 OM REGULATORY FEE- NCRETAIL 55 OM REGULATORY EXPENSE-SCRETAIL 1,249,642 0 56 OM REGULATORY EXPENSE-NCUC COAL ASH FEE 57 OM REGULATORY EXPENSE-TRANS 1,540,109 58 Regulatory Commission Expense - Acct 928 (Sum L54 through L57) 7,495,556 59 60 OM A&G ALL PLANT RELATED 34,601,854 61 62 ALL OTHER O&M 808,526,501 63 Total O&M Other than Fuel and Purch. Power (L52 + L58 + L60 + 1,473,061,959 64 L62) 65 66 Total Operation and Maintenance Expense (L43 + L48 + L64) 3,303,196,147 Item 14 Lead Lag Detail E-1Item14 NC Retail Jurisdictional Amount Lead Lag ~ Weighted Amount (3,342,615,512) (33,231,855) 0 (18,246,968) 0 (302,632) (99,558,959) (4,764,887) (699,832) 38.01 38.01 38.01 38.01 32.13 32.13 32.13 32.13 32.13 (127,052,815,598) (1,263,142,821) 0 (693,567,254) 0 (9,723,574) (3, 198,829,367) (153,095,810) (22,485,602) (3,499,420,645) 37.83 (132,393,660,027) (6,901,021) (6,934,417) (3,430,750) (9,496,819) (378,941) 0 (5,426,033) (3,398,411) (4,783,458) (795,245) (3,951,734) 171,353 0 (603,101) (57,084) (1,637,349) (5,115,419) 196,040 (52,542,388) (3,551,963,0341 780,539,411 68.43 62.57 32.89 154.04 32.89 32.89 31.49 31.49 32.89 37.33 37.33 37.33 37.33 37.33 38.01 37.33 0.00 38.01 60.50 38.17 (472,236,836) (433,886,460) (112,837,352) (1,462,889,996) (12,463,359) 0 (170,865,787) (107,015,963) (157,327,948) (29,686,488) (147,518,242) 6,396,601 0 (22,513,766) (2,169,748) (61, 122,235) 0 7,451,480 (3, 178,686,098) (135,572,346, 1241 780,539,411 24.79 0.00 24.79 19,349,572,010 0 19,349,572,010 69,669,584 225,663,830 59,096,405 35.54 35.54 0.00 2,476,057,005 8,020,092,505 0 354,429,818 29.61 10,496,149,510 407,300,729 29.14 11,868,743,235 4,705,805 0 0 911,180 5,616,985 90.15 555.00 90.15 134.00 97.26 424,228,321 0 0 122,098,054 546,326,375 19,372,869 (177.25) (3,433,840,945) 558,918,016 30.47 17,030,231,958 991,208,598 26.24 26,011,460,623 2, 126, 177 ,828 26.27 55,857,182,143 Page 2 of 20 Duke Energy Progress, LLC Docket E-2, SUB 1142 Cash Working Capital for NC Retail Operations - Lead Lag Summary Detail For the test period ended December 31, 2016 Summer Winter Peaking & Average (SWP&A) Demand Allocation with MINIMUM SYSTEM NC Retail Total 12 ME Line Dec Jurisdictional No. Total Utility 01:1erating Revenue and Ex1:1ense Line Descri1:1tion 2016 Amount 67 68 DEPRECIATION AND AMORTIZATION: 69 682,233,800 484,825,702 70 DEPRECIATION AND AMORTIZATION 71 Total Depree & Amort & Prop Loss (L70) 682,233,800 484,825, 702 72 73 TAXES OTHER THAN INCOME TAXES: 74 OT LABOR RELATED 42,220,760 27,579,630 289,895 243,605 75 OT LABOR RELATED - DSM/EE 28,543 0 76 OT LABOR RELATED - DERP 77 OT PROPERTY TAX 92,934,272 62,113,764 78 OT FED HEAVY VEHICLE USE TAX 71,366 55,907 79 OT ELECTRIC EXCISE TAX- SC 1,658,801 0 80 OT PRIVILEGE TAX 15,299,135 11,225,837 81 OT PUC LICENSE TAX - SC 1,255,485 0 82 Taxes Other Than Income Taxes (Sum L74 through L81) 153,758,258 101,218,742 83 84 Interest on Customer Deposits 85 INTEREST ON CUST DEPOSITS - INPUT 9,341,953 8,661,843 86 87 Interest on Customer Deposits (Sum L85 through L86) 9,341,953 8,661,843 88 89 INCOME TAXES: 90 Federal Income Taxes 91 BOOK FEDERAL INCOME TAX (53,582, 117) (41,375,015) 92 (53,582, 117) (41,375,014) 93 Federal Income Taxes (Sum L91 through L92) 94 95 State Income Taxes 96 BOOK STATE INCOME TAX (23,847, 119) (18,414,258) 97 98 State Income Taxes (Sum L96 through L97) 123,847,1191 118,414,2581 99 100 Deferred Income Taxes 101 BOOK DEFERRED INCOME TAXES 383, 181,991 305,862,431 102 103 Net Income Taxes (L93+L98+L101) 305, 752, 755 246,073, 158 104 105 AMORT OF INVESTMENT TAX CREDIT (5,304,895) (3,335,031) 106 Investment Tax Credit Adj Net -Acct 411.4(SumL105throughL1~ 15,304,8951 13,335,0311 107 Total Utility Operating Expenses (L66 + L71 + L82+L87+L103 + 4,448,978,018 2,963,622,242 108 L106) 109 110 NET OPERATING INCOME: TXD INTEREST CHARGES 111 INTEREST EXPENSE-ELECTRIC 253,989, 160 165,953,361 562,788,844 422,387,431 112 Income for Return (L 113 - L 111) 113 Net Utility Operating Income (L36 - L 108) 816,778,004 588,340, 792 114 5,265, 756,022 3,551,963,034 115 Total Requirements (L108 + L113) Item 14 Lead Lag Detail E-1Item14 Lead Lag ~ 0.00 0.00 Weighted Amount 0 0 33.60 33.60 33.60 184.15 35.31 35.31 (232.69) (119.33) 96.45 926,675,557 8,185,132 0 11,438,249,578 1,974,066 0 {2,612, 140,029) 0 9, 762,944,305 137.50 1, 191,003,450 137.50 1,191,003,450 36.50 (1,510, 188,062) 36.50 (1,510, 188,062) 36.50 (672, 120,410) 36.50 1672,120,4101 0.00 (8.87) 0 12. 182,308,4721 0.00 0 21.81 64,628,821,426 90.59 0.00 25.55 15,033,714,985 0 15,033,714,985 22.43 79,662,536,411 Page 3 of 20 NCUC Form E-1 Item No.14 Support COS Workpapers DUKE ENERGY PROGRESS, LLC Docket E-2, SUB 1142 NORTH CAROLINA RETAIL COST OF SERVICE STUDY "PER BOOKS" WITHOUT CASH WORKING CAPITAL TEST YEAR ENDING December 31, 2016 Summer Winter Peaking & Average (SWP&A) Demand Allocation with MINIMUM SYSTEM NC RETAIL NC RES 5,265,756,022 3,551,963,034 1,754,260,433 232,142,723 3,737,226 917,431,096 536,463,925 6,036,762 603,552 69,667,191 29,160,574 BOOK O&M EXPENSE BOOK DEPRECIATION EXPENSE BOOK OTHER AMORTIZATIONS BOOK OTHER TAXES BOOK STATE INCOME TAX BOOK FEDERAL INCOME TAX BOOK INVESTMENT TAX CREDITS BOOK DEFERRED INCOME TAXES 3,303,196,147 635,556,603 46,675,197 153,756,256 (23,647,119) (53,562,117) (5,304,695) 363,161,991 2,126,177,626 436,465, 164 46,340,516 101,216,742 (16,414,256) (41,375,015) (3,335,031) 305,662,431 1,006,034,695 246,067,644 16,652,443 54,436,160 (9,217,036) (20,709,769) (1,704,659) 153,095,779 121,669,230 29,567,637 11,933,666 6,476,046 (1,416,276) (3,166,730) (196,667) 23,557,721 2,067,396 565,516 411,395 115,739 (10,616) (24,307) (3,017) 179,666 571,691,450 66,267,990 7,237,414 22,660,533 (5,191,561) (11,664,924) (626,640) 66,232,279 391,675,764 50,637,651 6,400,499 14,056,965 (1,445,364) (3,247,634) (517,767) 24,007,946 3,067,334 767,019 46,016 163,796 (46,351) (104,147) (5,210) 769,699 391,661 90,604 54,717 19,693 (442) (993) (543) 7,341 16,233,744 11,649,633 1,260,640 1,704,517 (976,376) (2,193,625) (45,395) 16,217,722 12,617,260 6,573,375 136,522 1,374,596 (106,067) (236,366) (30,559) 1,762,107 TOTAL OPER EXPENSE - PB 4,439,636,065 2,954,960,396 1,446,677,476 166,440,645 3,301,594 756,624,343 461,970,223 4,660,356 562,236 43,650,656 24,266,650 COS SUMMARY - PER BOOKS BOOK REVENUES TOTAL SYSTEM NC SGS NC SGSCLR NC MGS NC LGS NC SI NC TSS NC ALS NC SLS NC SFL OTHER RETAIL TOTAL WHOLESALE 219,530 532,475,652 1,161,317,336 66,692 37,713 4,961 6,676 (1,923) (4,322) (154) 31,949 345,417,197 66,596,657 (6,312,556) 17,266,963 (2,251,435) (5,056, 752) (557,357) 37,396,534 631,601,122 130,474,763 6,647,235 35,272,553 (3,161,426) (7,146,350) (1,412,506) 39,923,027 163,612 452,499,250 1,032,176,416 OPERATING EXPENSES: RETURN BEFORE ADJUSTMENTS INTEREST ON CUST DEPOSITS - INPUT 626,119,957 (9,341,953) 597,002,636 (6,661,643) 305,402,957 (7,369,529) 43,702,076 (997,116) 435,634 (32,364) 156,606, 753 (239,901) 56,493,701 (1,767) 1,356,424 (5,663) 41,314 (5,390) 26,036,333 (0) 4,671,724 (9,617) 55,717 (477) 79,976,403 (660,110) 149,140,916 0 INCOME FOR RETURN 616,776,004 566,340,793 296,033,427 42,704,962 403,250 156,366,652 56,491,934 1,350,760 35,924 26,036,333 4,662,106 55,241 79,296,293 149,140,916 1,053,593,676 (466,263,974) 16,462,236 (6, 774,215) 3,616,504,060 (1,627,514,956) 2, 164,606, 132 (965,476,141) 27,406,166 (12, 706,226) 3,061,515 (1,446,432) 346,361,707 (169,065,432) 249,477,243 (122,226,126) 1,134,669 (552,100) 565,329,902 9,706,021 1,990,969,124 1,199,327,991 14,699,960 1,633,063 177,316,275 127,251,117 562,769 1,452,041,465 0 13,432,377 (123,306,160) (4,236,039) 72,350,172 11,631,649 0 196,042 (1,796,326) (79,903) 1,772,136 (502,766) 0 79,736,906 (506,906,275) (16,052, 133) 176,757,069 172,462, 753 0 59,240,646 (301,365,550) (10,640,302) 107,547,597 75,706,051 0 379,745 (3,475,096) (99,246) 1,242,407 1,096,331 0 40,610 (329,571) (14,245) 265,041 (32,631) 0 2,070,667 (34,364,693) (405,437) 15,566,362 1,641,413 0 677,302 (24,992,693) (636,971) 6,905,923 4,411,120 0 6,431 (115,430) (3,931) 53,991 16,534 0 45,263,160 (366,592,340) (11,022,596) 115,060,455 192,294,491 535,199,901 9,295,164 1,694,965,444 1,129,796,634 13,646,096 1,562,066 161,626,766 115,613,599 544,364 1,407,064,633 4.34% 6.36% 5.00% 9.76% YEAR END RATE BASE: BOOK PLANT IN SERVICE BOOK DEPRECIATION RESERVE 24,610,546,652 (11,013,726,761) BOOK NET PLANT IN SERVICE 13,596,619,671 PLANT HELD FOR FUTURE USE BOOK NUCLEAR FUEL INVENTORY BOOK ACCUM DEFERRED INC TAX BOOK OPERATING RESERVES BOOK MATERIALS & SUPPLIES BOOK WORKING CAPITAL, REG ASSETS 0 439,366,632 (3,360,514,220) (102,713,521) 1,162,556,149 963,127,604 BOOK RATE BASE 12,676,666,714 RATE OF RETURN 6.44% 16,399,962,264 6,917,114,417 (7,515,969,136) (4,119,959,533) 6,663,993, 146 4,797,154,664 0 0 267,193,066 111,409,941 (2, 126,676, 756) (1,129,962,760) (67,102,323) (34,930,114) 767,459,635 402,977,135 566,141,762 321,707,550 6,331,006, 752 7.06% 4,466,336,636 6.67% 7.96% PB Summary NC 2.30% 16.09% 4.21% 10.15% 2,655,677,622 5,554,666,546 (1,203,636,357) (2,293,901,266) 5.64% 3,260,765,260 0 126,912,604 (665,243,124) (24,566,600) 260,037,659 162,691,331 2,940,595,330 5.07% Page 4 of20 DUKE ENERGY PROGRESS, LLC Docket E-2, SUB 1142 NORTH CAROLINA RETAIL COST OF SERVICE STUDY "PER BOOKS" WITHOUT CASH WORKING CAPITAL TEST YEAR ENDING December 31, 2016 NCUC Form E-1 Item No.14 Support COS Workpapers Summer Winter Peaking & Average (SWP&A) Demand Allocation with MINIMUM SYSTEM COS DETAIL - REVENUES TOTAL SYSTEM NC RETAIL NC RES NC SGS NC SGSCLR NC MGS NC LGS NC SI NC TSS NC ALS NC SLS NC SFL OTHER RETAIL TOTAL WHOLESALE 502,555,293 0 392,614 3,352,319 0 48,506 16,872,984 788,607 0 1,062,135,775 160,382 47,288,977 2,276,507 0 524,010,322 1,111,861,641 SALES OF ELECTRICITY: RETAIL SALES OF ELECTRICITY REV-REPS REV-DERP REV UNBILLED REVENUES REV - SALES FOR RESALE D/A REV - SALES FOR RESALE CREDIT - TRANSMISSION REV - SALES FOR RESALE CREDIT - ENERGY REV - SALES FOR RESALE CREDIT - DEMAND REV- PROV FOR RATE REFUND 3,845, 170,805 33,231,855 392,614 21,599,287 1,062, 135,775 511,520 163,720,920 7,830,000 699,832 3,342,615,512 33,231,855 0 18,246,968 0 302,632 99,558,959 4,764,887 699,832 1,645,628,092 16,183,936 0 16,709,214 0 158,220 41,512,521 2,204,678 424,452 210,862,429 11,582,770 0 278,788 0 17,245 5,005,046 253,355 49,376 3,136,646 410,491 0 4,194 0 144 73,047 2,964 730 876,34 7 ,348 3,592,458 0 922,044 0 82,299 29,710,813 1,367,446 203,527 508,129,399 123,965 0 72,020 0 44,260 22,073,765 901,110 18,311 5,775,485 42,421 0 7,607 0 432 141,497 6,786 1,387 516,093 54,590 0 (943) 0 32 15,132 626 150 65,528,071 1,137,812 0 227,184 0 26,484,933 98,927 0 26,584 0 207,015 4,486 0 277 771,627 20,977 1,407 252,370 6,861 487 3,142 85 TOTAL SALES OF ELECTRICITY 5,135,292,608 3,499,420,645 1,722,821,112 228,049,008 3,628,216 912,225,935 531 ,362,831 5,975,616 585,679 67,687,077 26,870,161 215,011 194,192 10,279 0 7,662 7,699 149,670 11,765 0 380 382 610 1,834 0 OTHER REVENUES: REV - FORFEITED DISCOUNTS (450) AS INPUT REV- MISC SERVICE REVENUES (451) REV - RENT (454) - DIST PLT REL REV- RENT (454) - DIST POLE RENTAL REV REV - RENT (454) - TRANS PLT REL REV - RENT (454) -ADD FAC - WHLS REV - RENT (454) -ADD FAC - RET x LIGHTING REV - RENT (454) -ADD FAC - LIGHTING REV - RENT (454) - OTHER REV - OTHER ELEC REV (456) - PROD PLT REL REV - OTHER ELEC REV (456) - TRANS REL REV - OTHER ELEC REV (456) - GEN PLT REL REV - OTHER ELEC REV (456) - WH D/A REV - OTHER ELEC REV (456) - OTHER REV - OTHER ELEC REV (456) - REPS REV - OTHER ELEC REV (456) - OTHER ENERGY REV - OTHER ELEC REV (456) - DIS PLT REL REV - OTHER NC RETAIL SPECIFIC TOTAL OTHER REVENUES BOOK REVENUES Functionalized Book Revenues 7,752,736 7,790,254 3,961,334 11,433,409 640,499 3,535,448 6,509,841 3,890,020 7,321,012 1,306,803 6,679,366 (237,259) 60,496,765 923,037 57,084 2,692,558 5,906,547 (196,040) 6,901,021 6,934,417 3,430,750 9,496,819 378,941 0 5,426,033 3,398,411 4,783,458 795,245 3,951,734 (171,353) 0 603,101 57,084 1,637,349 5,115,419 (196,040) 5,871,415 5,899,828 2,375,542 7,704,125 198,115 0 21 2,582,959 367,954 2,066,017 (103,142) 0 325,661 27,800 682,716 3,542,053 (81,742) 794,417 798,262 293,623 994,776 21,593 0 63,207 0 304,394 42,284 225,185 (12,565) 0 38,378 19,896 82,313 437,807 (9,855) 25,801 25,926 7,461 28,772 180 5,227 495 1,877 (273) 0 659 705 1,201 11,125 (144) 191,132 192,057 313,594 625,724 103,051 0 395,718 0 1,072,019 228,223 1,074,652 (30,048) 0 135,161 6,171 488,625 467,584 (58,503) 1,408 1,415 87,519 99,303 55,421 0 4,967,087 0 645,761 150,392 577,947 (16,843) 0 81,418 213 363,026 130,494 (43,465) 4,512 4,534 7,485 15,418 541 4,294 4,315 1,053 4,824 40 7,915 1,133 5,644 (295) 0 998 73 2,327 11,160 (279) 879 105 412 (43) 0 111 94 249 1,570 (30) 1,586,359 95,473 3,501 0 (4,401) 0 12,037 1,954 12,690 289,550 (1,519) 1,812,052 68,517 1,145 0 (3,725) 0 8,639 170 4,150 223,166 (497) 314 14 0 (17) 0 40 52 910 (6) 851,715 855,837 517,448 1,936,590 60,736 0 1,083,808 491,609 781,831 131,616 633,380 (26,848) 0 98,574 0 277,493 771,541 0 1,755,723 379,942 2,094,252 (39,058) 60,496,765 221,363 0 777,716 19,587 0 13,137 0 200,822 3,535,448 0 130,463,414 52,542,388 31,459,322 4,093,715 109,012 5,205,160 7,101,094 61,166 17,873 2,200,115 2,290,413 4,519 8,465,330 69,455,695 5,265,756,022 5,023,726,933 3,551,963,034 3,394,794, 167 1,754,280,433 1,678,945,693 232,142,723 222,773,363 3,737,228 3,552,061 917,431,096 881,065,377 538,463,925 508,343,696 6,036,782 5,826,900 603,552 569,890 69,887,191 66,894,473 29,160,574 26,610,930 219,530 211,784 532,475,652 506,300,226 1,181,317,336 1,122,632,540 5,265,756,022 5,023,726,933 3,551,963,034 3,394,794, 167 1, 754,280,433 1,678,945,693 232,142,723 222,773,363 3,737,228 3,552,061 917,431,096 881,065,377 538,463,925 508,343,696 6,036,782 5,826,900 603,552 569,890 69,887,191 66,894,473 29,160,574 26,610,930 219,530 211,784 532,475,652 506,300,226 1,181,317,336 1,122,632,540 REVENUE ADJUSTMENTS: TOTAL REVENUE ADJUSTMENTS TOTAL ADJUSTED REVENUE Functionalized Adjusted Revenues Revenues NC Page 5 of20 DUKE ENERGY PROGRESS, LLC Docket E-2, SUB 1142 NORTH CAROLINA RETAIL COST OF SERVICE STUDY "PER BOOKS" WITHOUT CASH WORKING CAPITAL TEST YEAR ENDING December 31, 2016 NCUC Form E-1 Item No.14 Support COS Workpapers Summer Winter Peaking & Average (SWP&A) Demand Allocation with MINIMUM SYSTEM COS DETAIL - OPER. EXPENSE TOTAL SYSTEM NC RETAIL NC RES NC SGS NC SGSCLR NC MGS NC LGS NC SI NC TSS NC ALS NC SLS NC SFL OTHER RETAIL TOTAL WHOLESALE PRODUCTION O&M EXPENSE: FUEL OM PROD ENERGY - FUEL 1,283, 796,622 780,539,411 325,456,984 39,239,416 572,689 232,931,932 173,057,691 1,109,332 118,633 6,049,532 1,978,574 24,630 132,344,003 370,913,207 TOTAL FUEL 1,283, 796,622 780,539,411 325,456,984 39,239,416 572,689 232,931,932 173,057,691 1,109,332 118,633 6,049,532 1,978,574 24,630 132,344,003 370,913,207 114,486,004 371,095,580 60,755,982 69,669,584 225,663,830 59,096,405 32,235,599 94,093,736 24,552,364 3,704,412 11,344,612 2,960,241 43,333 165,572 43,203 19,994,056 67,343,572 17,607,209 13,175,534 50,033,170 13,232,805 99,225 320,722 84,121 9,155 34,298 8,950 306,708 1,748,996 456,375 100,313 572,031 149,263 1,249 7,121 1,874 11,530,576 38,244,897 1,659,577 33,285,844 107,186,854 0 PURCHASE POWER OM PROD PURCHASES - CAPACITY COST OM PROD PURCHASES - ENERGY COST OM DEFERRED FUEL EXPENSE 546,337,566 354,429,818 150,881,699 18,009,265 252,108 104,944,836 76,441,509 504,069 52,403 2,512,079 821,606 10,244 51,435,050 140,472,698 1,830,134,188 1,134,969,230 476,338,683 57,248,681 824,797 337,876,769 249,499,200 1,613,400 171,036 8,561,611 2,800,180 34,873 183,779,053 511,385,906 DEMAND RELATED: OM PROD FIXED O&M 339,032,093 207,724,171 96,112,432 11,044,934 129,199 59,613,513 39,283,668 295,847 27,297 914,470 299,089 3,723 33,765,629 97,542,293 TOTAL PRODUCTION O&M-DEMAND 339,032,093 207,724,171 96,112,432 11,044,934 129,199 59,613,513 39,283,668 295,847 27,297 914,470 299,089 3,723 33,765,629 97,542,293 ENERGY RELATED: OM PROD VARIABLE O&M OM PROD VARIABLE O&M-DERP REL OM OTHER EXPENSES - DSM REL 437,629,432 900 84,656,490 273,262,871 0 71,138,688 113,940,832 0 43,145,992 13,737,519 0 5,019,085 200,495 0 74,216 81,548,283 0 20,688,695 60,586,616 0 1,861,362 388,371 0 141,024 41,533 0 15,243 2,117,910 0 142,979 692,689 0 49,497 8,623 0 596 43,368,796 900 13,517,802 120,997,765 0 0 TOTAL PRODUCTION O&M-ENERGY 522,286,822 344,401,560 157,086,823 18,756,605 274,712 102,236,978 62,447,978 529,396 56,776 2,260,889 742,186 9,218 56,887,497 120,997,765 2,691,453,103 1,687,094,960 729,537,938 87,050,220 1,228,707 499,727,259 351,230,846 2,438,643 255,108 11,736,970 3,841,455 47,814 274,432,179 729,925,964 TRANSMISSION O&M EXPENSE: OM TRANSMISSION EXP - TRANS OM TRANS EXP - WHEEL BY OTHERS OM TRANS EXP - OTH PROD RELATED 43,287,516 761 3,194,759 25,621,332 463 1,944,146 13,395,156 214 899,542 1,460,002 25 103,373 12,172 0 1,209 6,967,577 133 557,939 3,747,158 88 367,666 36,595 1 2,769 2,673 0 255 0 2 8,559 0 1 2,799 0 0 35 4,106,564 77 321,763 13,559,620 221 928,849 TOTAL TRANSMISSION O&M 46,483,036 27,565,942 14,294,912 1,563,399 13,381 7,525,648 4,114,912 39,365 2,929 8,561 2,800 35 4,428,404 14,488,690 DISTRIBUTION O&M EXPENSE: OM OVERHEAD LINES OM UNDERGROUND LINES OM LINE TRANSFORMERS OM METER EXPENSE OM STREET LIGHTS OM DISTRIBUTION RENTS OM LOAD DISPATCH OM DISTRIBUTION EXP - MISC & SUPERVISION OM CUSTOMER INSTALLATIONS OM SUBSTATIONS OM DISTRIBUTION EXP - DSM/EE 96,535,731 9,534,944 798.661 9.312.665 6.822.286 2.533.934 5.214.815 22.664.091 2.013.972 5.419.869 5.056.039 80,580,637 8,644,789 714.880 8.244.123 5.710.749 2.115.134 4.480.992 19.628.444 1.631.197 4.657.191 4.248.699 66,276,404 6,957,643 509.935 5.794.466 0 1.739.667 2.767.091 13.591.258 0 2.875.897 2.576.859 8,720,575 889,272 56.674 769.988 0 228.903 270.181 1.679.914 0 280.805 299.761 263,638 25,021 910 24.984 0 6.920 1.035 42.690 0 1.076 4.433 4,197,897 625,003 115.489 1.445.232 0 110.189 913.368 1.794.174 0 949.283 1.235.615 821,035 105,179 25.052 172.190 0 21.551 473.193 500.722 0 491.800 111.168 95,039 14,558 2.853 33.882 0 2.495 22.915 42.824 0 23.816 8.423 44,070 4,203 161 530 55,817 11,230 2.691 0 1.157 249 6.025 0 259 910 1.465 22.498 1.111.035 1.631.197 23.383 8.539 95,783 10,950 1.114 0 5.710.749 2.514 7.358 856.313 0 7.648 2.956 10,378 1,730 1 2.852 0 272 3.103 3.490 0 3.225 36 15,861,198 890,155 83.285 811.567 1.111.537 416.335 651.994 2.960.489 382.775 677.631 807.340 93,896 0 496 256.975 0 2.465 81.829 75.158 0 85.047 0 165.907.007 140.656.837 103.089.221 13.196.072 370.705 11.386.251 2.721.891 246.806 57.564 2.867.855 6.695.384 25.087 24.654.304 595.866 TOTAL PURCHASES & DEF. FUEL TOTAL FUEL. DEF. FUEL & PURCH POWER TOTAL PRODUCTION O&M TOTAL DISTRIBUTION O&M Op. Exp. NC - 1 Page 6 of20 DUKE ENERGY PROGRESS, LLC Docket E-2, SUB 1142 NORTH CAROLINA RETAIL COST OF SERVICE STUDY "PER BOOKS" WITHOUT CASH WORKING CAPITAL TEST YEAR ENDING December 31, 2016 NCUC Form E-1 Item No.14 Support COS Workpapers Summer Winter Peaking & Average (SWP&A) Demand Allocation with MINIMUM SYSTEM TOTAL SYSTEM NC RETAIL CUST. ACCOUNTING EXPENSE: OM METER READING OM CUST ACCT EXP - MISC OM UNCOLLECTIBLES OM CUSTOMER RECORDS, EXCL REPS 4,468,044 944, 100 6,972,450 35,514,951 3,977,475 840,381 6,206,457 31,065,058 3,388,514 715,000 5,280,477 26,430,270 458,474 96,741 714,462 3,576,082 14,890 3,142 23,204 116,142 110,719 23,275 171,896 860,386 1,739 171 1,266 6,337 2,604 549 4,058 20,311 316 523 3,862 19,330 219 46 342 1,710 490,543 103,719 765,993 4,449,893 26 933 6,891 34,489 TOTAL CUST ACCT EXPENSE 26 COS DETAIL- OPER EXPENSE NC RES NC SGS NC SGSCLR NC MGS NC LGS NC SI NC TSS NC ALS NC SLS NC SFL OTHER RETAIL 47,899,545 42,089,371 35,814,261 4,845,760 157,378 1,166,276 9,513 27,522 24,031 42,313 2,317 5,810, 148 CUST. SERV & INFO EXPENSE: OM CUST SERV & INFO - CUST ASSIST 4,480,319 3,988,111 3,393, 100 459,095 14,910 110,456 814 2,607 2,482 4,428 219 492,208 4,428 219 492,208 TOTAL CUST SERV & INFO EXP 4,480,319 3,988,111 3,393, 100 459,095 14,910 110,456 814 2,607 2,482 SALES EXPENSE: OM SALES EXPENSE - DEMO & SELLING OM SALES EXPENSE - DSM/EE 6,290,476 16,809 5,599,404 14,125 4,763,995 8,567 644,580 997 20,934 15 155,083 4,108 1,142 370 3,661 28 3,484 3 6,217 10 308 28 691,072 2,684 TOTAL SALES EXPENSE 6,307,285 5,613,529 4,772,562 645,577 20,949 159,190 1,512 3,689 3,487 28 6,226 308 693,756 A&G REGULATORY EXPENSE: OM REGULATORY EXPENSE-NCUC COAL ASH FEE OM REGULATORY FEE - NCRETAIL OM REGULATORY EXPENSE-SCRETAIL OM REGULATORY EXPENSE-TRANS 4,705,805 1,249,642 1,540, 109 4,705,805 0 911,180 2,460,307 0 476,376 298,540 0 51,923 5,651 0 433 1,119,601 0 247,790 739,668 0 133,261 6,966 0 1,301 1,005 0 95 28,256 0 45,532 0 278 TOTAL ADM & GEN REG EXPENSE 7,495,556 5,616,985 2,936,683 350,462 6,084 1,367,391 872,930 8,268 1,100 28,256 45,532 OTHER A&G EXPENSE: OM A&G LABOR RELATED & MISC OM A&G LABOR RELATED - DSM/EE OM A&G LABOR RELATED - DERP OM A&G ALL PLANT RELATED OM A&G GENERAL PLT RELATED 295,384,504 871,488 914,912 34,601,854 1,397,538 192,437,567 732,330 0 19,372,869 1,009,328 100,610,959 444,162 0 10,533,553 607,543 12,208,379 51,668 0 1,244,583 74,014 231,077 764 30,247,744 19,162 0 2,557,229 99,212 284,870 1,452 0 32,374 1,739 41,107 157 21,833 1,610 45,784,566 212,978 0 4,274,444 176,991 3,640 255 1,155,506 1,472 0 409,172 25,924 TOTAL ADM & GEN PLT EXPENSE 333, 170,296 213,552,093 112, 196,217 13,578,644 255,284 50,448,979 32,923,346 320,435 45,159 TOTAL ADMIN AND GEN EXPENSE 340,665,852 219, 169,078 115, 132,901 13,929, 106 261,367 51,816,370 33,796,276 328,703 46,259 3,303, 196, 147 2, 126, 177,828 1,006,034,895 121,689,230 2,067,398 571,891,450 391,875,764 3,087,334 391,861 TOTAL WHOLESALE ADMIN & GENERAL EXPENSE: BOOK O&M EXPENSE Op. Exp. NC - 2 1,249,642 146,043 482,886 278 1,395,685 482,886 1,861,972 510 11,387 6 73,785,954 0 294,701 21,940 1,341 100 29,160,983 139,158 914,912 3,137,319 158,142 1,592,073 2,179,123 12,833 33,510,514 86, 107,689 1,620,329 2,224,655 13,112 34,906,199 86,590,575 16,233,744 12,817,260 88,892 345,417,197 831,601,122 12,091,667 230,068 Page 7 of20 DUKE ENERGY PROGRESS, LLC Docket E-2, SUB 1142 NORTH CAROLINA RETAIL COST OF SERVICE STUDY "PER BOOKS" WITHOUT CASH WORKING CAPITAL TEST YEAR ENDING December 31, 2016 NCUC Form E-1 Item No.14 Support COS Workpapers Summer Winter Peaking & Average (SWP&A) Demand Allocation with MINIMUM SYSTEM COS DETAIL - OPER. EXPENSE TOTAL SYSTEM NC RETAIL NC RES NC SGS NC SGSCLR NC MGS NC LGS 62,755,352 2,366,758 (1,429,704) 0 0 (1,337,425) 0 0 0 (3,281,119) 0 0 0 0 41,354,053 1,559,628 (942,136) 0 0 (881,326) 0 NC SI NC TSS NC ALS NC SLS 962,665 36,306 (21,932) 0 0 (20,516) 0 0 0 (50,332) 0 0 0 0 314,852 11,874 (7,173) 0 0 (6,710) 0 NC SFL OTHER RETAIL TOTAL WHOLESALE DEPRECIATION & INTANGIBLE PLT AMORT EXPENSE: PRODUCTION FUNCTION: OPE PRODUCTION RELATED OPE EXT. DECOM. TRUST-PROD OPE CONTRA AFUDC NC RET-PROD OPE CONTRA AFUDC SC RET-PROD OPE CONTRA AFUDC WHSL - PROD OPE HARRIS PLANT DISALLOW-NCR OPE HARRIS PLANT DISALLOW-SCR OPE HARRIS PLANT DISALLOW-WHSLE OPE HARRIS PLT. DISALLOW-NCEMPA OPE OTHER NC RETAIL SPECIFIC EXPENSE OPE OTHER SC RETAIL SPECIFIC EXPENSE OPE RATE DIFF. PROD.- SC OPE RATE DIFF. PROD. - WHSLE OPE RATE DIFF. PROD.- NCEMPA 359,337,273 218,671,954 101,177,890 12,841,497 8,247,003 3,815,827 (4,981,825) (4,981,825) (2,305,053) (528,463) 0 0 (653,970) 0 (4,660,278) (4,660,278) (2, 156,276) (631,364) 0 0 (1,033,415) 0 (297,678) 0 (11,433, 107) (11,433,107) (5,290,014) (5,250,329) 0 0 1,283,116 0 418,979 0 191,197 0 11,627,040 438,503 (264,889) 0 0 (247,792) 0 0 0 (607,911) 0 0 0 0 136,008 5,129 (3,099) 0 0 (2,899) 0 TOTAL PRODUCTION PLT DEPR. 344,601,633 205,843,747 95,242,374 10,944,950 128,030 59,073,862 OPE OPE OPE OPE OPE OPE 2,751,308 1,674,287 37,382,131 22,126,247 (85,289) 0 204, 148,669 176,804,831 15,688,715 11,330,679 31,071,436 20,705,391 774,680 11,567,881 0 122,424,373 6,820,253 11,258,082 89,024 1,260,838 0 15,131,959 830,876 1,330,189 1,041 10,511 0 384,530 18,072 23,334 635,558,603 248,087,644 29,587,837 565,518 TRANS RELATED - PROD TRANS RELATED - TRANS TRANS RELATED - OATT CONTRA DISTRIBUTION PLANT GENERAL PLANT AMORT LTD TERM PLT BOOK DEPRECIATION EXPENSE 438,485, 184 0 (7,111) 0 Op. Exp. NC - 3 311,439 11,746 (7,095) 0 0 (6,637) 0 0 0 (16,283) 0 0 0 0 28,735 1,084 (655) 0 0 (612) 0 38,928,052 293,169 27,050 906,191 480,494 6,017,108 0 16,161,174 1,986,900 4,568,453 316,632 3,235,997 0 4,510,296 1,113,751 2,733,122 2,385 31,603 0 385,738 19,524 34,601 220 2,309 0 54,274 2,861 3,890 7,371 0 0 10,007,736 291,019 437,316 88,287,990 50,837,851 767,019 90,604 11,649,633 (2, 162, 167) 0 0 (1,502) 0 3,919 148 (89) 0 0 (84) 0 0 0 (205) 0 0 0 0 36,191,024 (84,060) 0 (528,463) 0 0 (631,364) 0 296,381 3,689 30,979,924 2,411 0 7,713,312 246,300 314,971 30 0 0 31,439 1,122 1,433 277,101 3,546,375 0 26,666,844 1,775,301 3,353,113 799,920 11,709,509 (85,289) 676,994 2,582,735 7,012,932 8,573,375 37,713 66,598,657 130,474,763 0 (16,462) 0 0 (5,250,329) 1,283,116 0 104,474,295 4,678,553 0 0 (653,970) 0 0 (1,033,415) (297,678) 0 0 0 418,979 191,197 107,777,962 Page B of 20 DUKE ENERGY PROGRESS, LLC Docket E-2, SUB 1142 NORTH CAROLINA RETAIL COST OF SERVICE STUDY "PER BOOKS" WITHOUT CASH WORKING CAPITAL TEST YEAR ENDING December31, 2016 NCUC Form E-1 Item No.14 Support COS Workpapers Summer Winter Peaking & Average (SWP&A) Demand Allocation with MINIMUM SYSTEM COS DETAIL - OPER. EXPENSE OTHER AMORTIZATION EXPENSE: AMORT WHS SPEC - MAYO, RECS AMORT NUCLEAR DESIGN BASIS AMORT NCEMPA ACQ ADJ AMORT DSM/EE DEBIT AMORT DSM/EE CREDIT AMORT DSM/EE O&M DEFERRAL AMORT DSM/EE CAPITAL DEFERRAL AMORT NC REPS DEBIT AMORT NC REPS DEFERRAL AMORT SC DERP AMORTIZATION AMORT SC POLLUTION CNTL O&M DEF AMORT SC POLLUTION CNTL DPE DEF AMORT RETIRED PLANT AMORT OTHER NC RETAIL PROD REL AMORT OTHER NC RETAIL SPECIFIC AMORT OTHER SC RETAIL SPECIFIC AMORT DISP. OF ALLOWANCES BOOK OTHER AMORTIZATIONS TOTAL SYSTEM 347,294 721,298 12,758,733 108,353,057 (27,882,680) (92,462,378) (12,783,078) 2,327,439 31,116,580 15,907 (220,539) (2,610,226) 29,534,188 3,921,213 1,147,323 (7,244,545) (364,389) 46,675,197 NC RETAIL NC RES NC SGS NC SGSCLR 438,940 7,764,230 89,387,185 (23,430,422) (78,575,793) (10,741,898) 2,327,439 31,116,580 0 203,094 3,592,451 54,213,801 (14,210,675) (47,656,635) (6,515,018) 1,133,464 15,153,795 0 23,339 412,833 6,306,581 (1,653,099) (5,543,799) (757,879) 811,215 10,845,503 0 273 4,829 93,254 (24,444) (81,975) (11,207) 28,749 384,363 0 125,969 2,228,210 25,995,759 (6,814,082) (22,851,569) (3, 123,980) 251,603 3,363,791 0 83,010 1,468,329 2,338,838 (613,063) (2,055,955) (281,064) 8,682 116,074 0 625 11,058 177,200 (46,448) (155,767) (21,295) 2,971 39,721 0 58 1,020 19,153 (5,020) (16,836) (2,302) 3,823 51,115 0 1,932 34,181 179,656 (47,092) (157,926) (21,590) 79,688 1,065,387 0 632 11,179 62,194 (16,303) (54,672) (7,474) 6,928 92,630 0 139 748 (196) (658) (90) 314 4,200 0 23,207,307 3,921,213 1,147,323 0 (221,586) 10,737,849 1,814,316 478,392 0 (92,393) 1,233,959 208,495 57,678 0 (11,140) 14,434 2,439 842 0 (163) 6,660, 126 1,125,325 342,389 0 (66,127) 4,388,840 741,559 254,379 0 (49,129) 33,053 5,585 1,631 0 (315) 3,050 515 174 0 (34) 102, 166 17,262 8,892 0 (1,717) 33,415 5,646 2,908 0 (562) 416 70 36 0 (7) 46,340,518 18,852,443 11,933,688 7,237,414 6,400,499 48,018 1,260,840 136,522 411,395 Op. Exp. NC - 3a NC MGS NC LGS NC SI NC TSS 54,717 NC ALS NC SLS NC SFL OTHER RETAIL 4,981 72,646 1,285,009 18,965,872 (4,452,258) (13,886,585) (2,041, 180) 0 TOTAL WHOLESALE 347,294 209,711 3,709,494 0 15,907 (220,539) (2,610,226) 3,840,896 0 0 (7,244,545) (37,554) 2,485,985 0 (6,312,556) 6,647,235 0 (105,250) Page 9 of20 DUKE ENERGY PROGRESS, LLC Docket E-2, SUB 1142 NORTH CAROLINA RETAIL COST OF SERVICE STUDY "PER BOOKS" WITHOUT CASH WORKING CAPITAL TEST YEAR ENDING December 31, 2016 NCUC Form E-1 Item No.14 Support COS Workpapers Summer Winter Peaking & Average (SWP&A) Demand Allocation with MINIMUM SYSTEM COS DETAIL - OPER. EXPENSE TOTAL SYSTEM NC RETAIL NC RES NC SGS NC SGSCLR NC MGS NC LGS NC SI NC TSS NC ALS NC SLS NC SFL OTHER RETAIL TOTAL WHOLESALE OTHER TAXES OT OT OT OT OT OT OT OT LABOR RELATED LABOR RELATED - DSM/EE LABOR RELATED - DERP PROPERTY TAX FED HEAVY VEHICLE USE TAX ELECTRIC EXCISE TAX - SC PRIVILEGE TAX PUC LICENSE TAX- SC 42,220,760 289,895 28,543 92,934,272 71,366 1,658,801 15,299,135 1,255,485 27,579,630 243,605 0 62,113,764 55,907 0 11,225,837 0 14,419,290 147,748 0 33,772,935 36,510 0 6,061,698 0 1,749,672 17,187 0 3,990,412 4,423 0 714,352 0 70,000 101 153,758,258 101,218,742 54,438,180 BOOK O&M EXPENSE BOOK DEPRECIATION EXPENSE BOOK OTHER AMORTIZATIONS BOOK OTHER TAXES 3,303, 196, 147 635,558,603 46,675,197 153, 758,258 2, 126, 177,828 438,485, 184 46,340,518 101,218,742 TOT OP EXPENSE BEFORE INC TAX - BOOK 4, 139, 188,205 OP INCOME BEFORE INC. TAX 1,126,567,817 BOOK OTHER TAXES 33,117 254 4,335,025 6,374 0 8,199,049 3,044 0 1,515,474 0 40,827 483 5,891 52 165,604 490 266,853 169 1,632 2 103,799 113 11,671 15 18,575 0 2,064 0 1,311,896 2,470 0 224,057 0 944,877 1,902 0 160,795 0 4,298 8 12,267 0 6,561,720 70,846 0 13,704,826 7,322 0 2,515,819 0 6,476,046 115,739 22,860,533 14,058,965 163,796 19,693 1,704,517 1,374,596 1,006,034,895 248,087,644 18,852,443 54,438,180 121,689,230 29,587,837 11,933,688 6,476,046 2,067,398 565,518 411,395 115,739 571,891,450 88,287,990 7,237,414 22,860,533 391,875,764 50,837,851 6,400,499 14,058,965 3,087,334 767,019 48,018 163,796 391,861 90,604 54,717 19,693 16,233,744 11,649,633 1,260,840 1,704,517 2,712,222,272 1,327,413,162 169,686,800 3,160,050 690,277,388 463, 173,079 4,066,168 556,875 839,740,762 426,867,272 62,455,924 577,178 227,153,708 75,290,845 1,970,614 46,677 Op. Exp. NC - 4 4,560,297 46,290 28,543 9,739,518 8,551 1,658,801 0 1,224,962 21,080,990 6,908 0 4,073,298 30,523 6,676 17,266,963 35,272,553 12,817,260 8,573,375 136,522 1,374,596 88,892 37,713 4,981 6,676 345,417,197 66,598,657 (6,312,556) 17,266,963 831,601,122 130,474,763 6,647,235 35,272,553 30,848,733 22,901,754 138,263 422,970,260 1,003,995,673 39,038,458 6,258,820 81,266 109,505,392 177,321,663 736 10,080,834 0 Page 10 of20 NCUC Form E-1 DUKE ENERGY PROGRESS, LLC Docket E-2, SUB 1142 NORTH CAROLINA RETAIL COST OF SERVICE STUDY "PER BOOKS" WITHOUT CASH WORKING CAPITAL TEST YEAR ENDING December 31, 2016 Item No.14 Support COS Workpapers Summer Winter Peaking & Average (SWP&A) Demand Allocation with MINIMUM SYSTEM COS DETAIL - OPER. EXPENSE TOTAL SYSTEM NC RETAIL NC RES NC SGS NC SGSCLR NC MGS NC LGS NC SI NC TSS NC ALS NC SLS NC SFL OTHER RETAIL TOTAL WHOLESALE ADDITIONAL TAX DEDUCTIONS TEMPORARY DIFFERENCES: TXD INTEREST CHARGES (253,989, 160) (165,953,361) (89,611,053) (10,560,386) (181,346) (37,191,760) (22,403,497) (274,596) (30,506) (3,312,275) (2,377,056) (10,887) (27, 124, 195) (60,911,604) TOTAL OPERATING INTEREST DEDUCTIONi (253,989, 160) (165,953,361) (89,611,053) (10,560,386) (181,346) (37,191,760) (22,403,497) (274,596) (30,506) (3,312,275) (2,377,056) (10,887) (27, 124, 195) (60,911,604) BOOK OPERATING INTEREST DEDUCTIONS (253,989, 160) (165,953,361) (89,611,053) (10,560,386) (181,346) (37, 191,760) (22,403,497) (274,596) (30,506) (3,312,275) (2,377,056) (10,887) (27, 124, 195) (60,911,604) 337,256,219 51,895,538 395,832 3,881,763 70,380 82,381,197 116,410,059 TAXABLE INCOME BEFORE SIT 872,578,657 673,787,401 Op. Exp. NC - 5 189,961,949 52,887,349 1,696,018 16,171 35,726,182 Page 11 of20 DUKE ENERGY PROGRESS, LLC Docket E-2, SUB 1142 NORTH CAROLINA RETAIL COST OF SERVICE STUDY "PER BOOKS" WITHOUT CASH WORKING CAPITAL TEST YEAR ENDING December 31, 2016 NCUC Form E-1 Item No.14 Support COS Workpapers Summer Winter Peaking & Average (SWP&A) Demand Allocation with MINIMUM SYSTEM COS DETAIL- OPER. EXPENSE TOTAL SYSTEM NC RETAIL NC RES NC SGS NC SGSCLR NC MGS NC LGS NC SI NC TSS NC ALS NC SLS NC SFL OTHER RETAIL TOTAL WHOLESALE CURRENT INCOME TAXES: TOTAL STATE INCOME TAX - PB (23,847, 119) (18,414,258) (9,217,036) (1,418,278) (10,818) (5,191,561) (1,445,384) (46,351) (442) (976,378) (106,087) (1,923) (2,251,435) (3, 181,426) FEDERAL INCOME TAX-PER BOOKS (53,582, 117) (41,375,015) (20,709,769) (3, 186, 730) (24,307) (11,664,924) (3,247,634) (104,147) (993) (2, 193,825) (238,366) (4,322) (5,058, 752) (7, 148,350) INVESTMENT TAX CREDITS: PRODUCTION RELATED TRANSMISSION RELATED DISTRIBUTION RELATED GENERAL RELATED HARRIS DISALLOW.- NCR HARRIS DISALLOW.- SCR HARRIS DISALLOW.- WHSLE HARRIS DISALLOW.-NCEMPA (4,269,886) (533,396) (658,770) (143,688) 213,807 27,137 47,773 12,129 (2,562,031) (312,498) (570,534) (103,774) 213,807 0 0 0 (1, 185,433) (160,635) (395,053) (62,465) 98,927 0 0 0 (136,226) (17,570) (48,830) (7,610) 11,368 0 0 0 (1,594) (150) (1,241) (166) 133 0 0 0 (735,262) (84,589) (52,151) (18,197) 61,359 0 0 0 (484,517) (48,948) (14,554) (10,201) 40,434 0 0 0 (3,649) (442) (1,245) (179) 305 0 0 0 (337) (33) (175) (26) 28 0 0 0 (11,279) (98) (32,294) (2,665) 941 0 0 0 (3,689) (32) (24,890) (2,256) 308 0 0 0 (46) (0) (101) (10) 4 0 0 0 (432,043) (50,140) (86,052) (16,259) 0 27,137 0 0 (1,275,812) (170,758) (2,185) (23,655) 0 0 47,773 12,129 BOOK INVESTMENT TAX CREDITS (5,304,895) (3,335,031) (1,704,659) (198,867) (3,017) (828,840) (517,787) (5,210) (543) (45,395) (30,559) (154) (557,357) (1,412,506) ITC ITC ITCITC ITC ITC ITC ITC - Op. Exp. NC - 6 Page 12 of 20 NCUC Form E-1 Item No.14 Support COS Workpapers DUKE ENERGY PROGRESS, LLC Docket E-2, SUB 1142 NORTH CAROLINA RETAIL COST OF SERVICE STUDY "PER BOOKS" WITHOUT CASH WORKING CAPITAL TEST YEAR ENDING December 31, 2016 Summer Winter Peaking & Average (SWP&A) Demand Allocation with MINIMUM SYSTEM COS DETAIL - OPER. EXPENSE TOTAL SYSTEM NC RETAIL NC RES NC SGS NC SGSCLR NC MGS NC LGS NC SI NC TSS NC ALS NC SLS NC SFL OTHER RETAIL TOTAL WHOLESALE DEFERRED INCOME TAXES: BOOK DEFERRED INCOME TAXES 363,161,991 305,662,431 153,095,779 23,557,721 179,666 66,232,279 24,007,946 769,699 7,341 16,217,722 1,762,107 31,949 37,396,534 39,923,027 BOOK DEFERRED INCOME TAXES 363,161,991 305,662,431 153,095,779 23,557,721 179,666 66,232,279 24,007,946 769,699 7,341 16,217,722 1,762,107 31,949 37,396,534 39,923,027 4,439,636,065 2,954,960,396 1,446,677,476 166,440,645 3,301,594 756,624,343 461,970,223 4,660,356 562,236 43,650,656 24,266,650 163,612 452,499,250 1,032,176,416 TOTAL OPER EXPENSE - PB Op. Exp. NC - 7 Page 13 of20 DUKE ENERGY PROGRESS, INC. Docket E-2, SUB 1142 NORTH CAROLINA RETAIL COST OF SERVICE STUDY "PER BOOKS" WITHOUT CASH WORKING CAPITAL TEST YEAR ENDING December 31, 2016 NCUC Form E-1 Item No.14 Support COS Workpapers Summer Winter Peaking & Average (SWP&A) Demand Allocation with MINIMUM SYSTEM TOTAL SYSTEM NC RETAIL NC RES NC SGS PRODUCTION PLANT IN SERVICE: PRODUCTION PLANT CONTRA AFUDC - WHS CONTRAAFUDC- NC RETAIL CONTRAAFUDC- SC RETAIL HARRIS DISALLOWANCE - NC HARRIS DISALLOWANCE - SC HARRIS DISALLOWANCE - WHS HARRIS DISALLOWANCE - PA 16, 192,459,020 (43,733,591) (322, 147,308) (36,350,250) (387,936,216) (52,556,762) (86,024,692) (24,779,621) 9,853,797,319 0 (322,147,308) 0 (387,936,216) 0 4,559,278,878 0 (149,055, 168) 0 (179,495,208) 0 523,937,780 0 (17,128,944) 0 (20,627,016) 0 TOTAL PRODUCTION PLANT 15,238,930,581 9,143,713,795 4,230,728,502 COS DETAIL- RATE BASE NC SGSCLR NC MGS NC LGS NC SI 6, 128,809 0 (200,367) 0 (241,286) 0 2,827,882, 150 0 (92,451,122) 0 (111,331,486) 0 1,863,496,674 0 (60,922,751) 0 (73,364,392) 0 14,034,068 0 (458,812) 0 (552,510) 0 486, 181,819 5,687,156 2,624,099,542 1,729,209,532 NC TSS OTHER RETAIL TOTAL WHOLESALE 176,612 0 (5,774) 0 (6,953) 0 1,630,840, 194 0 0 (36,350,250) 0 (52,556,762) 0 4,707,821,508 (43,733,591) 0 13,165,439 163,885 1,541,933, 182 4,553,283,604 NC ALS NC SLS 1,294,872 0 (42,333) 0 (50,978) 0 43,379,633 0 (1,418,198) 0 (1,707,822) 0 14, 187,842 0 (463,839) 0 (558,564) 0 13,022,746 1,201,561 40,253,614 NC SFL TRANSMISSION PLANT IN SERVICE: TRANSMISSION PLANT - TRAN TRANSMISSION PLANT - PROD TRANS PLANT - OATI CONTRA TRANS PLANT -ADD FAG RETAIL TRANS PLANT -ADD FAG WHSLE/PA TRANSMISSION PLANT - FERG MIT REL 2,243,843,635 169,350,564 (5,208,306) 14,074,789 476,813 41,435, 105 1,328, 115,539 103,056,993 0 12,383,552 0 694,355,549 47,683,706 0 75,681,117 5,479,659 0 630,927 64,099 0 361, 173,517 29,575,708 0 194,238,878 19,489,579 0 12,383,552 0 1,896,967 146,777 0 138,583 13,543 0 453,691 0 148,385 0 1,847 0 TOTAL TRANSMISSION PLANT 2,463,972,599 1,443,556,084 742,039,254 81,160,777 695,026 390,749,225 226, 112,010 2,043,744 152,126 453,691 148,385 SUBSTATIONS: SUBSTATIONS - RETAIL SUBSTATIONS - ADD FAG RETAIL SUBSTATIONS - ADD FAG WHS 727,641,357 12,433,704 11,798,160 635,386,904 10,683,579 0 398,959,866 0 38,954,771 0 149,216 0 131,689,601 0 57,541,558 10,683,579 0 3,303,925 0 35,940 0 3,243,775 0 1,060,917 0 TOTAL DIST SUBSTATIONS 751,873,221 646,070,483 398,959,866 38,954,771 149,216 131,689,601 68,225, 137 3,303,925 35,940 OVERHEAD LINES: PRIMARY POLES - CUSTOMER PRIMARY POLES - DEMAND SECONDARY POLES - CUSTOMER SECONDARY POLES - DEMAND PRIMARY CONDUCTOR - GUST PRIMARY CONDUCTOR - DEMAND PRIMARY COND - ADDL FAG RETAIL PRIMARY COND - ADDL FAG WHSL SECONDARY COND - CUSTOMER 408,204, 143 103,971,695 172,778,773 7,386,788 693,713,705 103, 138,490 7,252,041 1,602,738 149,754,296 335,324,337 85,408,834 141,931,258 6,067,968 586,888,773 86,496,369 6,648,326 0 126,693,641 285,305,699 56,006,569 121,238,733 4,456,502 499,345,538 56,719,717 72 0 108,222,648 38,602,581 5,468,528 16,398,783 434,781 67,562,712 5,538,160 210,826 0 14,638,224 1,253,714 20,947 532,757 1,667 2, 194,266 21,214 0 0 475,561 9,286,342 18,434,818 3,475,209 1,114,389 16,253,070 18,669,554 1,319,903 0 3,102,114 57,334 4,342,020 0 100,346 4,397,308 5, 117,525 0 0 219,246 463,810 38,898 12,142 383,727 469,716 0 0 34,722 208,665 5,045 88,671 401 365,209 5,110 0 0 79,151 1,647,802,670 1,375,459,505 1,131,295,478 148,854,594 4,500, 126 71,655,400 14,014,532 1,622,261 752,252 557, 195,236 359, 175,503 288,904, 166 6,380,586 505,779,152 325,784,967 261,205,869 5,768,856 430,334,630 278,287,935 171,284,913 4,236,825 58,225,362 37,641,299 16,724,400 413,349 1,891,012 1,222,876 64,063 1,585 14,006,852 7,976,896 56,379,212 1,059,457 86,478 0 13,279,200 0 330,695 89,286 1,418,470 11,544 1,211,655,490 1,098,538,845 884, 144,304 113,004,411 3, 179,536 79,422,417 13,365,678 1,849,994 0 (86,024,692) (24,779,621) 212,869,143 17,056,317 0 1,691,237 0 702,858,953 49,237,255 (5,208,306) 0 476,813 41,435, 105 1,847 231,616,696 788,799,819 447,335 0 92,254,453 1,750,125 0 11,798,160 DISTRIBUTION PLANT IN SERVICE TOTAL DIST OVERHEAD LINES UNDERGROUND LINES: U/G LINES - PRIMARY CUSTOMER U/G LINES - SECONDARY CUSTOMER U/G LINES - PRIMARY DEMAND U/G LINES - SECONDARY DEMAND TOTAL DIST UNDGRND LINES Rate Base NC - 1 3,243,775 1,060,917 447,335 94,004,578 11,798,160 372,300 148,933 158,206 11,851 651,604 150,829 0 0 141,222 18,455 62,798 0 72,879,806 18,562,862 30,847,515 1,318,820 106,824,932 16,642,121 603,715 0 23,060,655 1,602,738 0 952,764 1,634,946 177,150 270,740,427 1,602,738 314,736 203,533 15,430 382 1,392,646 34,448 561,551 363,143 455,482 11,267 27,836 0 192,054 0 51,416,084 33,390,535 27,698,296 611,730 534,080 1,427,094 1,391,442 219,890 113,116,645 455,366 0 36,234 0 461,164 0 32,300 63,597 0 Page 14 of20 DUKE ENERGY PROGRESS, LLC NCUC Form E-1 Docket E-2, SUB 1142 Item No.14 Support COS Work.papers NORTH CAROLINA RETAIL COST OF SERVICE STUDY "PER BOOKS" WITHOUT CASH WORKING CAPITAL TEST YEAR ENDING December 31, 2016 Summer Winter Peaking & Average (SWP&A) Demand Allocation with MINIMUM SYSTEM TOTAL SYSTEM NC RETAIL LINE TRANSFORMERS: LINE TRANS - DEMAND LINE TRANS - CUSTOMER LINE TRANS - ADDL FAC RET LINE TRANS - ADDL FAC WHS 686,730,234 288,199,924 4,732,838 608,854 614,942,708 258,146,302 4,350,782 0 406,232,164 219,659,587 61 39,663,271 29,719,549 178,696 0 151,936 965,246 0 133,484,675 7,146,613 1,118,750 0 27,655,456 40,353 3,053,276 0 3,335,453 166,716 0 36,595 160,653 0 3,302,903 0 1,080,255 286,637 0 947 TOTAL DIST LINE TRNSFRMS 980,271,850 877,439,793 625,891,812 69,561,516 1,117,183 141,750,038 30,749,085 3,502,168 197,249 3,302,903 1,366,893 947 SERVICES: SERVICES - ALLOCATED 490,565,449 427,003,638 365,356, 110 49,418,164 1,605,478 10,472,634 117,220 34,032 63,561,811 TOTAL DIST SERVICES 490,565,449 427,003,638 365,356,110 49,418,164 1,605,478 10,472,634 117,220 34,032 63,561,811 METERS: METERS - RETAIL METERS-WHS 194,177,372 5,510,213 176,775,290 0 124,248,311 0 16,510,525 0 535,712 0 30,989,515 0 3,692,193 0 726,523 0 11,356 0 124,248,311 16,510,525 535,712 30,989,515 3,692,193 726,523 11,356 COS DETAIL- RATE BASE NC RES NC SGS NC SGSCLR NC MGS NC LGS NC SI NC TSS NC ALS NC SLS OTHER RETAIL 61,155 0 TOTAL DIST METERS 199,687,585 176,775,290 STREET LIGHTS AREA LIGHTS 259, 172,084 345,246,818 216,945,853 279,629,280 DISTR PLANT SUBTOTAL 5,886,275, 167 5,097,862,687 3,529,895,882 436,303,981 11,087,250 465,979,604 130,046,626 11,122,092 1,564,908 TOTAL DISTRIBUTION PLANT 5,886,275, 167 5,097,862,687 3,529,895,882 436,303,981 11,087,250 465,979,604 130,046,626 11,122,092 1,564,908 288,555,816 222,400,050 0.03% 4.90% 3.76% 0.19% NC SFL 61,155 279,629,280 216,945,853 0 288,555,816 222,400,050 TOTAL WHOLESALE 71,787,526 30,053,622 382,056 0 608,854 102,223,203 608,854 17,402,082 0 5,510,213 17,402,082 5,510,213 42,226,231 65,617,538 906,477 768,892,515 19,519,965 906,477 768,892,515 19,519,965 0.02% 13.06% 0.33% GENERAL PLANT: GENERAL PLANT - PROD GENERAL PLANT - T/D GENERAL PLANT - GUST/SALES GENERAL PLANT - LABOR 29,751,016 295,925,323 20,275,575 267,070,064 18,104,754 231,822,039 18,048,101 174,760,897 8,376,935 151,393,566 15,355,393 91,369,174 962,651 18,338,489 2,077,623 11,086,958 11,261 417,553 67,476 209,851 5,195,775 30,361,705 499,865 41,578,949 3,423,873 12,621,944 3,682 27,469,288 25,785 466,585 11,800 258,703 2,379 60,850 11,231 37,331 79,703 10,242,239 0 1,049,365 26,068 7,886,918 20,038 1,690,937 324 32,190 993 10,341 2,996,404 35,457,153 2,227,474 28,687,194 8,649,858 28,646,131 0 63,621,972 TOTAL GENERAL PLANT 613,021,977 442,735,790 266,495,068 32,465,721 706,141 77,636,293 43,518,786 762,874 111,791 11,371,307 9,623,961 43,849 69,368,226 100,917,962 TOTAL TANGIBLE PLANT 24,202,200,325 16,127,868,356 8,769,158,706 1,036,112,298 18,175,573 3,558,464,664 2,128,886,953 26,951,455 3,030,386 340,634,427 245,337,834 1,116,059 2,611,810,619 5,462,521,350 408,346,327 272,113,928 147,955,711 17,481,578 306,663 60,039,416 35,919,179 454,733 51,130 5,747,280 4,139,409 18,830 44,067,203 92,165,196 24,610,546,652 16,399,982,284 8,917,114,417 1,053,593,876 18,482,236 3,618,504,080 2,164,806,132 27,406,188 3,081,515 346,381,707 249,477,243 1,134,889 2,655,877,822 5,554,686,546 INTANGIBLE PLANT: INTANGIBLE PLT BOOK PLANT IN SERVICE Rate Base NC - 2 Page 15 of20 NCUC Form E-1 DUKE ENERGY PROGRESS, LLC Docket E-2, SUB 1142 Item No.14 Support COS Workpapers NORTH CAROLINA RETAIL COST OF SERVICE STUDY "PER BOOKS" WITHOUT CASH WORKING CAPITAL TEST YEAR ENDING December 31, 2016 Summer Winter Peaking & Average (SWP&A) Demand Allocation with MINIMUM SYSTEM COS DETAIL- RATE BASE TOTAL SYSTEM NC RETAIL NC RES NC SGS NC SGSCLR NC MGS NC LGS NC SI NC TSS NC ALS NC SLS NC SFL OTHER RETAIL TOTAL WHOLESALE RESERVE FOR DEPRECIATION PRODUCTION FUNCTION: DPR PRODUCTION RELATED DPR NUCLEAR DECOMM. - PROD DPR RATE DIFF SC RETAIL-PROD DPR RATE DIFF WHOLESALE-PROD DPR RATE DIFF. NCEMPA -PROD DPR CONTRA AFUDC NC RET-PROD DPR CONTRA AFUDC SC RET-PROD DPR CONTRA AFUDC WHS - PROD DPR HARRIS DISALLOW. - NC DPR HARRIS DISALLOW. - SC DPR HARRIS DISALLOW. - WHS DPR HARRIS DISALLOW. - NCEMPA DPR OTHER NC RETAIL SPECIFIC - PROD DPR OTHER SC RETAIL SPECIFIC - PROD (7,007,047,095) (15,761,095) 26,742,417 8,753,772 3,300,361 219,434,855 22,653,960 28,774,328 244,840,629 31,161,970 47,999,423 15,147,842 (365,935,984) (67,697,865) (4,264,085,016) (13,103,890) 0 (1,972,960,486) (6,063,073) 0 (226,726,323) (696,749) 0 (2,652,152) (8,150) (1,223,724,166) (3,760,607) 0 0 219,434,855 0 101,530,879 0 11,667,605 0 136,483 62,974,292 0 0 244,840,629 0 113,285,941 0 13,018,459 0 152,285 70,265,342 0 0 (365,935,984) 0 (169,315,864) 0 (19,457,239) 0 TOTAL PRODUCTION RESERVE 0 (227,603) (105,017,772) 0 0 (806,400,618) (2,478,137) 0 (6,073,035) (18,663) 0 (560,337) (1,722) 0 (18,771,894) (57,688) 0 (6,139,579) (18,867) 0 (76,426) (235) 0 (705,721,968) 0 26,742,417 0 41,498,329 0 312,526 0 28,836 0 966,024 0 315,950 0 3,933 0 46,302,931 0 348,709 0 32,174 0 1,077,868 0 352,530 0 4,388 0 (69,203,827) 0 0 (521,177) 0 0 (48,087) 0 (1,610,970) 0 0 (526,887) 0 0 (6,559) 0 (67,697,865) 22,653,960 0 31,161,970 0 (2,037,240, 111) (2,657 ,205) 0 8,753,772 3,300,361 0 28,774,328 0 47,999,423 15,147,842 0 (6,807,632,483) (4, 178,849,406) (1,933,522,602) (222, 194,248) (2,599, 137) (1, 199,262,910) (790,281,322) (5,951,640) (549,136) (18,396,660) (6,016,853) (74,899) (692,861,486) (1,935,921,591) TRANSMISSION FUNCTION: DPR TRANS RELATED - PROD DPR TRANS RELATED - TRANS DPR CONTRA AFUDC - DATT DPR TRANS RELATED - FERG MIT REL (54,258,643) (734,360,395) 1,242,125 (2,061,323) (33,018,683) (434,658,826) 0 (15,277,500) (227,245,114) 0 (1,755,642) (24,768,527) 0 (20,537) (206,487) 0 (9,475,834) (118,203,012) 0 (6,244,314) (63,569,502) 0 (47,026) (620,830) 0 (4,339) (45,355) 0 (145,359) 0 (47,541) 0 (592) 0 (5,464,715) (69,666,719) 0 (15,775,245) (230,034,850) 1,242,125 (2,061,323) TOTAL TRANSMISSION RESERVE (789,438,236) (467,677,509) (242,522,614) (26,524,168) (227,023) (127,678,846) (69,813,816) (667,856) (49,694) (145,359) (47,541) (592) (75,131,434) (246,629,293) DISTRIBUTION FUNCTION: DPR DISTRIBUTION RELATED (2,899,918,382) (2,511,500,957) (1,739,030,144) (214,948,486) (5,462,218) (229,568,408) (64,068,463) (5,479,384) (770,964) (142,159,225) (109,567,082) (446,583) (378,800,765) (9,616,660) TOTAL DISTRIBUTION RESERVE (2,899,918,382) (2,511,500,957) (1,739,030,144) (214,948,486) (5,462,218) (229,568,408) (64,068,463) (5,479,384) (770,964) (142,159,225) (109,567,082) (446,583) (378,800,765) (9,616,660) GENERAL FUNCTION: DPR GENERAL RELATED (243,873,864) (176,130,207) (106,017,703) (12,915,591) (280,919) (30,885,455) (17,312,747) (303,488) (44,473) (4,523,760) (3,828,627) (17,444) (27,596,233) (40,147,424) TOTAL GENERAL RESERVE (243,873,864) (176,130,207) (106,017,703) (12,915,591) (280,919) (30,885,455) (17,312,747) (303,488) (44,473) (4,523,760) (3,828,627) (17,444) (27,596,233) (40,147,424) (12,583) INTANGIBLE: TOTAL LIMITED TERM PLT RESERVE BOOK DEPRECIATION RESERVE BOOK NET PLANT IN SERVICE (272,863,816) (181,831,059) (98,866,470) (11,681,482) (204,918) (40, 119,338) (24,001,794) (303,860) (34,166) (3,840,428) (2,766,022) (11,013,726,781) (7,515,989,138) (4,119,959,533) (488,263,974) (8,774,215) (1,627,514,956) (965,478,141) (12,706,228) (1,448,432) (169,065,432) (122,226,126) 13,596,819,871 8,883,993,146 4,797,154,884 565,329,902 9,708,021 1,990,989,124 14,699,960 1,633,083 177,316,275 127,251,117 Rate Base NC - 3 1,199,327,991 (29,446,439) (61,586,319) (552, 100) (1,203,836,357) (2,293,901,286) 582,789 3,260,785,260 1,452,041,465 Page 16 of20 NCUC Form E-1 Item No.14 Support COS Workpapers DUKE ENERGY PROGRESS, LLC Docket E-2, SUB 1142 NORTH CAROLINA RETAIL COST OF SERVICE STUDY "PER BOOKS" WITHOUT CASH WORKING CAPITAL TEST YEAR ENDING December 31, 2016 Summer Winter Peaking & Average (SWP&A) Demand Allocation with MINIMUM SYSTEM COS DETAIL- RATE BASE TOTAL SYSTEM NC RETAIL NC RES NC SGS NC SGSCLR NC MGS NC LGS NC SI NC TSS NC ALS NC SLS NC SFL OTHER RETAIL TOTAL WHOLESALE PLANT HELD FOR FUTURE USE BOOK NUCLEAR FUEL INVENTORY 439,366,632 267,193,066 111,409,941 13,432,377 196,042 79,736,906 59,240,646 379,745 40,610 2,070,667 677,302 (177,071) 4,665 0 0 (7,179) (11,222) 5,930 1,225 3,257 (16,149) (24,917) (145,651) (19,463) (3,965) 52,642 0 (7,675) 0 17,621 0 (5,932,061) 163,667 0 0 (366,064) (315,456) 643,910 0 91,541 (170,240) (74,311) (26,656,659) (1,961,620) (447,907) 1,097,212 0 (633,309) 0 597,024 0 (1,940,153) 53,529 0 0 (119,732) (506,323) 462,102 2,166 147,506 (56,935) (24,304) (20,699,520) (1,677,266) (322,600) 95,397 0 (596,025) 0 195,264 0 (329,571) (34,364,693) (24,992,693) 6,431 45,263,160 126,912,604 (24,151) 666 (673,625, 155) 0 0 (1,490) (3,109) 2,116 106 902 (709) (303) (64,369) (7,642) (1,466) 4,326 0 (2,739) 0 2,431 0 (227,230,326) 0 (13,262,607) (1,362,365) (6,005,071) (6,623,631) 5,272,974 242,992 2,502,515 (12,692,124) (37,937'117) (71,563,410) (12,069,671) (3,434,322) 0 (206,615) 0 (23,292,131) 0 25,066,769 (115,430) (366,592,340) ACCUM DEFERRED INCOME TAXES: DFTR PRODUCTION RELATED DFTR NC CLEAN AIR DFTR POLLUTION CNTL DEFERRAL DFTR GRIDSOUTH REG ASSET DFTR ENERGY RELATED DFTR LABOR RELATED DFTR ALL PLANT RELATED DFTR UNCOLLECTIBLE ACCOUNTS DFTR - UNBILLED REV DFTR DSM/EE DFTR TRANSMISSION RELATED DFTR DISTRIBUTION RELATED DFTR GENERAL PLANT RELATED DFTR INTANGIBLE PLANT RELATED DFTRREPS DFTRSCDERP NC RETAIL SPECIFIC SC RETAIL SPECIFIC NC RETAIL- HARRIS ACCELERATED DEPR UNWIND SC RETAIL - HARRIS ACCELERATED DEPR UNWIND (2,246,336,665) 37,177,463 (13,262,607) (1,362,365) (77,674,320) (60,265,549) 49,375,760 2,211,634 17,747,709 (97,394,652) (409,691,317) (547,655,407) (106,639,034) (31,623,956) 32,046,063 (206,615) (41,750,676) (23,292,131) 135,615,660 25,066,769 (1,347,463,205) 37,177,463 0 (623,470,477) 17,201,745 0 (71,647,236) 1,976,770 0 (366, 706, 117) 10,669,343 0 (254,626,711) 7,030,604 0 (2,374,550) (3,332,916) 2,052,951 226,645 967,166 (5,976,062) (13,293,540) (40,606,277) (5,656,209) (1,362,405) 11,169,469 0 (2,656,603) 0 7,210,641 0 (636,100) 23,123 0 0 (34,656) (63,065) 35,254 7,361 16,306 (66,367) (113,640) (1,031,926) (123,066) (23,699) 395,644 0 (45,623) 0 64,349 0 (14,095, 736) (12,499,300) 7,230,120 54,530 3,627,122 (24,633,356) (64,001,659) (43,370,267) (13,530,651) (4,679,096) 3,464,271 0 (9,356,777) 0 36,919,524 0 (10,472,464) (6,257,709) 4,355,265 402 2,396,272 (2,216,263) (37,035,490) (12, 103,676) (7,564,565) (2,799,316) 119,541 0 (5,636,316) 0 25,646,696 0 (1,919,125) 52,949 0 0 (67,131) (77,770) 53,362 1,267 22,566 (167,913) (334,750) (1,035,170) (132,956) (35,439) 40,906 0 (69,063) 0 193,146 0 (47,233,661) (52,535,931) 32,261,521 1,966,642 15,245,194 (64,702,526) (236,443,907) (474,475,206) (77,161,123) (21,206,657) 32,046,063 0 (41,750,676) 0 135,615,660 0 (19,694,637) (27,467,041) 17,420,490 1,675,096 7,970,552 (51,372,532) (121,540,592) (326,539,269) (46,445,440) (11,530,742) 15,606,454 0 (22,544,526) 0 62,746,359 0 BOOK ACCUM DEFERRED INC TAX (3,360,514,220) (2,126,676,756) (1,129,962,760) (123,306,160) (1,796,326) (506,906,275) (301,365,550) (3,475,096) Rate Base NC - 4 (22,435,366) (19,125,766) 11,641,265 0 (135,310,292) (1,616,769) (17,566,240) (7,162,779) 0 (665,243, 124) Page 17 of20 DUKE ENERGY PROGRESS, LLC Docket E-2, SUB 1142 NORTH CAROLINA RETAIL COST OF SERVICE STUDY "PER BOOKS" WITHOUT CASH WORKING CAPITAL TEST YEAR ENDING December 31, 2016 NCUC Form E-1 Item No.14 Support COS Workpapers Summer Winter Peaking & Average (SWP&A) Demand Allocation with MINIMUM SYSTEM COS DETAIL - RATE BASE TOTAL SYSTEM NC RETAIL NC RES NC SGS NC SGSCLR NC MGS NC LGS NC SI NC TSS 172,419 332,471 0 21,904 0 35,360,994 65,874,273 0 10,106,728 0 (1,068,119) 238,443 225 0 (864) 0 (126,411) (9,347,757) 66,469,007 91,603 0 (351,468) 0 (51,415,668) 21,300,684 43,520,084 0 6,660,056 0 0 (322,563) 5,980,216 68,057 0 (261,125) 0 (38,199,472) 261,079 409,868 0 50,157 0 0 (110,382) 453,085 436 0 (1,674) 0 (244,866) 29,004 59,144 0 4,628 0 0 (142,046) 48,973 47 0 (179) 0 (26,186) NC ALS NC SLS NC SFL OTHER RETAIL TOTAL WHOLESALE REGULATORY ASSETS: RASFAS 109 RASFAS 158 RA MAYO 2 ABANDONMENT-WHS RA PRODUCTION REL RA GRIDSOUTH RASC DERP RA REPS DEFERRAL RA DSM/EE DEFERRAL RA PSNC PIPELINE RA POLLUTION CNTL DEFERRAL - SC RA EMISSION ALLOWANCE PROCEEDS - NCR RA OTHER SC RETAIL REG ASSETS (LIABILITIES) RA OTHER NC RETAIL REG ASSETS (LIABILITIES) BOOK REGULATORY ASSETS 241,486,535 423,123,884 7,185,543 39,233,406 3,676,168 557,517 (86,470,958) 262,803,224 504,778 35,786,934 (1,177,746) 13,843,477 (172,290,485) 157,784,301 276,876,818 0 35,217,044 0 85,199,945 144,757,818 0 16,294,665 0 10,040,551 17,565,267 0 1,872,531 0 (86,470,958) 228,555,643 306,956 0 (1,177,746) 0 (172,290,485) (42,111,414) 138,620,209 127,990 0 (491,078) 0 (71,838,963) (30, 138,950) 16,125,407 15,431 0 (59,208) 0 (8,661,418) 768,262,277 438,801,574 270,559, 172 6,759,611 (429,931) 116,787,712 38,745,938 817,703 768,262,277 438,801,574 270,559, 172 6,759,611 (429,931) 116,787,712 38,745,938 817,703 3, 149,229 1,662,527 0 155,037 0 (2,960,643) 459,364 2,379 0 (9,128) 0 (1,335,329) 2,260,045 2,678,983 0 50,707 0 0 (257,412) 159,026 778 0 (2,985) 0 (436,736) (26,615) 1, 123,436 (26,615) 1, 123,436 10,351 16,383 0 631 57,913,228 100,797,430 7,185,543 2,983,014 0 0 (11,672) 1,913 10 0 (37) 0 (5,437) 25,789,005 45,449,636 0 1,033,348 3,676,168 557,517 0 34,247,581 52,022 35,786,934 0 13,843,477 0 4,452,405 12,142 160,435,688 169,025,015 4,452,405 12,142 160,435,688 169,025,015 145,800 0 REGULATORY ASSET ADJUSTMENTS: TOTAL REG ASSETS ADJUSTMENTS ADJ REGULA TORY ASSETS Rate Base NC - 48 Page 18 of20 NCUC Form E-1 DUKE ENERGY PROGRESS, LLC Docket E-2, SUB 1142 NORTH CAROLINA RETAIL COST OF SERVICE STUDY "PER BOOKS" WITHOUT CASH WORKING CAPITAL TEST YEAR ENDING December 31, 2016 Item No.14 Support COS Work.papers Summer Winter Peaking & Average (SWP&A) Demand Allocation with MINIMUM SYSTEM COS DETAIL - RATE BASE TOTAL SYSTEM NC RETAIL NC RES NC SGS NC SGSCLR NC MGS NC LGS NC SI NC TSS NC ALS NC SLS NC SFL OTHER RETAIL TOTAL WHOLESALE OPERATING RESERVES: OR LABOR RELATED OR COAL MINES & ENERGY RELATED (100,343,225) (2,370,296) (65,660,942) (1,441,381) (34,329, 110) (601,004) (4,165,578) (72,461) (78,845) (1,058) (15,621,990) (430,143) (10,320,726) (319,576) (97,200) (2,049) (14,026) (219) (394,266) (11,171) (635,317) (3,654) (3,885) (45) (10,778,316) (244,281) (23,903,967) (684,634) BOOK OPERATING RESERVES (102,713,521) (67' 102,323) (34,930,114) (4,238,039) (79,903) (16,052,133) (10,640,302) (99,248) (14,245) (405,437) (638,971) (3,931) (11,022,598) (24,588,600) TOTAL OPERATING RESERVES (102,713,521) (67' 102,323) (34,930,114) (4,238,039) (79,903) (16,052,133) (10,640,302) (99,248) (14,245) (405,437) (638,971) (3,931) (11,022,598) (24,588,600) 813,522,239 2,300,332 84,448,864 262,286,714 542, 115, 155 1,398,836 84,448,864 159,496,980 294,762,688 583,264 41,126,653 66,504,529 34,827,428 70,323 29,434,161 8,018,260 610,946 1,026 1,043,141 117,024 119,612,684 417,447 9,129,163 47,597,776 71,559,480 310,144 315,020 35,362,954 905,935 1,988 107,801 226,683 101,862 213 138,724 24,242 11,449,938 10,842 2,891,409 1,236,173 8,246,679 3,546 251,392 404,306 37,515 44 11,399 5,033 87,792,267 237,071 0 27,031,118 183,614,818 664,425 0 75,758,616 1,162,558,149 787,459,835 402,977,135 72,350,172 1,772,138 176,757,069 107,547,597 1,242,407 265,041 15,588,362 8,905,923 53,991 115,060,455 260,037,859 24,807,921 84,121,028 0 153,031,702 1,786,853 26,003,216 4,340,537 (121,384,365) (23,366,683) 0 13,395,715 69,188,324 0 70,806,633 826,764 14,041,147 2,343,791 (103,274,283) (16,179,714) 0 1,578,644 9,103,722 0 8,136,872 95,009 1,654,706 276,209 (13,973,271) (1,999,853) 0 27,109 275,221 0 95,182 1,111 28,415 4,743 (453,816) (50,820) 0 5,559,696 4,382,336 0 43,917,650 512,798 5,827,573 972,756 (3,361,894) (2, 135,875) 0 4,560 46,007 0 20,110 235 4,780 798 (75,532) (7,173) 0 495,143 58,270 0 673,696 7,866 519,000 86,633 (0) (1,322,631) 0 355,340 99,991 0 220,340 2,573 372,461 62,172 (134,764) (1,019,398) 0 1,627 10,834 0 2,743 32 1,706 285 (6,680) (4,155) 0 785,829 0 49,006,471 0 295,731 4,250,087 709,438 (19,664,440) (3,524,314) 0 1,764,702 0 WORKING CAPITAL: MATERIALS AND SUPPLIES: WC MAT.& SUP PLUS STORES EXP WC EMISSION ALLOWANCES WC EMISSION ALLOWANCE PROCEEDS - REPS WC FUEL INVENTORY BOOK MATERIALS & SUPPLIES CASH WORKING CAPITAL: WC DEFERRED DEBITS WC DEFERRED DEBITS-NC RET STORM WC DEFERRED DEBITS-SC RET STORM WC PRODUCTION RELATED WC PRELIMINARY SURVEY CHARGES WC UNAMORTIZED DEBT EXPENSE WC UNAMORTIZED LOSS ON REACQ DEBT WC CUSTOMER DEPOSITS - INPUT WC CUST ADV FOR CONSTRUCTION WC CASH ALLOW LEAD/LAG BOOK CASH WORKING CAPITAL BOOK WORKING CAPITAL BOOK RATE BASE 27,358,452 84,121,028 49,006,471 153,031,702 2,936,284 39,797,537 6,643,127 (141,048,805) (26,980,469) 0 3,349,038 857,108 0 28,940,525 337,920 3,510,402 585,967 (24,762) (596,085) 0 41,049 99,215 0 217,952 2,545 43,026 7,182 (79,362) (50,979) 0 194,865,327 149,340,209 51,148,378 4,872,038 (72,855) 55,675,041 36,960,113 280,628 6,392 31,858,803 13,666,316 1,357,423,476 936,800,043 454,125,513 77,222,209 1,699,283 232,432, 110 144,507,711 1,523,034 258,825 16,106,338 8,864,638 60,383 146,919,258 273,704,175 12,678,666,714 8,331,006,752 4,468,336,636 535, 199,901 9,295,184 1,894,985,444 1,129,796,634 13,846,098 1,562,086 161,826,786 115,613,599 544,384 1,407 ,064,633 2,940,595,330 Rate Base NC - 5 (6,216) 517,977 (41,286) 853,700 9,544,233 1,593,153 0 (89,472) 0 Page 19 of20 NCUC Form E-1 Item No.14 Support COS Workpapers DUKE ENERGY PROGRESS, LLC Docket E-2, SUB 1142 NORTH CAROLINA RETAIL COST OF SERVICE STUDY "PER BOOKS" WITHOUT CASH WORKING CAPITAL TEST YEAR ENDING December 31, 2016 Summer Winter Peaking & Average (SWP&A) Demand Allocation with MINIMUM SYSTEM COS DETAIL - LABOR TOTAL SYSTEM NC RETAIL NC RES NC SGS NC SGSCLR NC MGS NC LGS NC SI NC TSS NC ALS NC SLS NC SFL OTHER RETAIL TOTAL WHOLESALE DEVELOP LABOR FACTOR PRODUCTION LABOR: LABOl LABOR-PROD DEMAND REL LAB02 LABOR-PROD ENERGY REL 218,798,281 174,472,404 133,148,024 106,096,9S4 61,606,602 44,238,631 7,079,634 S,333,72S 82,81S 77,844 38,211,3S2 31,661,910 2S,180,232 23,S23,340 189,633 lS0,789 17,497 16,126 S86,161 822,299 191,711 268,943 2,386 3,348 22,036,494 17,981,02S 63,613,763 S0,394,424 TOTAL PRODUCTION LABOR 393,270,68S 239,244,978 10S,84S,233 12,413,3S9 160,6S9 69,873,262 48,703,S72 340,422 33,622 1,408,460 460,6S4 S,734 40,017,S20 114,008,187 TRANSMISSION LABOR: LAB04 LABOR-TRANS PROD REL LABOS LABOR-TRANS PST REL 1,108,328 lS,017,340 674,46S 8,888,S73 312,070 4,647,0S8 3S,862 S06,SOS 419 4,223 193,S61 2,417,197 127,SSl 1,299,967 961 12,696 89 927 2,969 971 12 111,626 1,424,6S2 322,237 4,704,114 TOTAL TRANSMISSION LABOR 16,12S,668 9,S63,038 4,9S9,128 S42,367 4,642 2,610,7S8 1,427,S18 13,6S6 1,016 2,969 971 12 1,S36,279 S,026,3Sl LAB12 LOAD DISPATCH LAB13 LABOR-SUBSTATION LAB20 LABOR-OVERHEAD LINE LAB2S LABOR-UNDERGROUND LINE LAB26 LABOR-LINE TRANSFORMR LAB34 LABOR-METER LAB3S LABOR-STREET LIGHT LAB361LABOR-CUST INSTALLATNS LAB39 LABOR-RENTS LAB38 LABOR-MISCELLANEOUS 378,304 4,849,091 3,180,410 34,910,931 3,300,606 637,9S8 S,421,SS6 2,690,231 1,S23,339 47,189 9,7S3,337 327,633 4,166,732 2,732,867 29,140,972 2,992,471 S71,03S 4,799,483 2,2Sl,918 1,3SS,98S 39,428 8,446,967 226,862 2,S73,030 1,687,S93 23,968,027 2,408,4SO 407,329 3,373,36S 28,041 2Sl,233 164,778 3,1S3,686 307,829 4S,270 448,264 713 962 631 9S,341 8,661 727 14,S4S 29,948 849,312 SS7,04S 1,S18,117 216,3SO 92,2Sl 841,371 8,3S8 440,008 288,S91 296,917 36,409 20,011 100,244 71S 21,308 13,976 34,370 S,039 2,279 19,72S 101 232 1S2 lS,937 l,4SS 128 308 18,S4S 20,920 13,721 20,186 3,887 2,lSO 14,293 6,842 4,488 34,639 3,790 890 S8 2,88S 1,892 3,7S3 S99 1 1,660 1,2SS 76,090 49,906 33,9S6 o o o o o o 1,1S3,678 32,429 S,848,90S 1S6,09S 4,267 722,939 S,070 129 18,371 37,SS6 2,0S4 772,111 277 402 21S,482 887 47 18,429 844 22 2,S93 27 478,126 2,2Sl,918 1,SOS 47 368,S09 1,S02 49,416 606,268 397,638 S,736,003 308,13S 66,S27 472,470 438,312 167,3S4 7,761 1,274,026 TOTAL DISTRIBUTION LABOR 66,692,9S2 S6,82S,492 41,679,668 S,282,403 14S,1SO 4,916,114 1,406,698 116,774 21,772 SS7,S63 2,686,921 12,430 9,S23,909 CUSTOMER ACCOUNTING LABOR DISTRIBUTION LABOR: LAB442 LABOR-SUPERVISION&ENGINEERING o 7S s 396 149,603 o 32,344 343,SSl 18,SSl,349 16,S13,328 14,0S0,07S 1,901,011 61,740 4S7,416 3,467 10,797 10,047 17,867 909 2,038,017 SALES LABOR 3,799,S68 3,382,147 2,877,S44 389,339 12,64S 93,673 690 2,211 2,lOS 3,7SS 186 417,420 CUST SERV & INFO LABOR 2,680,907 2,386,383 2,030,344 274,711 8,922 66,094 487 1,S60 l,48S 2,649 131 294,S24 ADMIN & GENERAL LABOR: LAB61 LABOR-A&G LABOR REL 121,316,919 79,38S,362 41,S04,S6S S,036,26S 9S,32S 18,887,291 12,477,9S9 117,Sl6 16,9S8 476,67S 768,111 4,697 13,031,19S 28,900,363 TOTAL ADMIN & GEN LABOR 121,316,919 79,38S,362 41,S04,S6S S,036,26S 9S,32S 18,887,291 12,477,9S9 117,S16 16,9S8 476,67S 768,111 4,697 13,031,19S 28,900,363 TOTAL LABOR EXPENSE 622,438,048 407,300,729 212,946,SS6 2S,839,4S4 489,083 96,904,608 64,020,391 602,937 87,004 2,44S,667 3,940,928 24,100 66,8S8,864 148,278,4SS Labor NC Page 20 of 20 Progress Energy Corporation Progress Energy Carolinas, Inc. 2010 Lead Lag Study August, 2011 ill ERNST & YOUNG Quality In Everythinf! We Do II I I i lllllllillllliP'" ~ ft?NST & YOUNG Ernst & Young LLP 300 First Stamford Place Stamford, CT 06902 Tel: +1 203 674 3409 31August2011 Ms. Andrea Chapman Lead Financial Analyst, PEC Regulatory Accounting 410 S Wilmington Street, PEB 18 Raleigh, North Carolina 27601 2010 Lead Lag Study for Progress Energy Carolinas, Inc. Dear Ms. Chapman: We have completed our procedures with respect to preparing a detailed lead lag study for Progress Energy Carolinas, Inc. focused on retail operations in the state of North Carolina but also providing information for the total entity and the other operations. Our procedures were performed in accordance with our Statement of Work dated effective January 31, 2011. Our report consists of three parts. We summarize our scope, approach and findings in a narrative executive summary. Thereafter we present our detailed findings in a schedule that provides the lag and lead days by revenue and expense component used by Progress Energy Carolinas, Inc. in its cost of service filings. In the third part we provide an appendix consisting of 45 sets of schedules that provide the workpaper documentation for our calculations as well as a summary comparison schedule to these 45 underlying detail schedules. The information provided in this report is intended to be used to support the Company's request for a cash working capital allowance to be included in the Company's requested rate base at the North Carolina Utility Commission, and is not intended to be and should not be used without our written consent by any other party or for any other purpose unless specifically mentioned in our statement of work. Our calculations relied on underlying accounting information provided by the Company. We did not audit that underlying accounting information. We value the opportunity to work with you and appreciate the cooperation and assistance provided to us during the course of our work. We would be pleased to discuss any aspect of our work or this report with you or other members of management at your convenience. If you have questions, please call Ken Novak at 203-674-3409. Thank you. Ken Novak ill ERNST &YOUNG Quality In Everything We Do Table of contents Executive summary ....................................................................................................................... 1 1.1 Organization of report .............................................................................................................................. 1 1.2 Background ................................................................................................................. 1 1.3 Scope and purpose of the lead lag study ........................................................................ 1 1.4 Standards and relation to the previous study .................................................................. 2 1.5 Key findings and clarifications ....................................................................................... 4 1.6 Revenue lag ................................................................................................................ 5 1. 7 Expense lead ............................................................................................................... 6 1.7.1 O&M - Fuel ....................................................................................................... 7 1.7.2 O&M - Purchased power .................................................................................... 8 1.7.3 O&M - Labor .................................................................................................... 8 1.7.4 O&M - Regulatory expense (account 928) ........................................................... 9 1.7.5 O&M - Insurance (accounts 924-925) ................................................................. 9 1.7.6 All other O&M ................................................................................................................................9 1.7.7 TotalO&M .................................................................................................................................... 11 1. 7 .8 Depreciation and amortization ......................................................................... 11 1.7.9 Taxesotherthanincome ................................................................................. 11 1.7.10 Income taxes ................................................................................................. 12 1. 7.11 Interest on customer deposits .......................................................................... 12 1.7.12 Net operating income ..................................................................................... 12 1. 7.13 Cash working capital impacts of pass through items ........................................... 12 Conclusion ................................................................................................................................. 14 Detailed Findings ........................................................................................................................ 1 7 Appendix ................................................................................................................................... 18 ill ERNST &YOUNG Quality In Everything We Do Executive summary 1.1 Organization of report This report is composed of three parts; Executive Summary, Detailed Findings, and Appendix. The Executive Summary provides background on the assignment, the purpose and scope of the lead lag study, the standards applied and the relation to previous studies, and a discussion of key findings. The Detailed Findings are provided in a schedule entitled Progress Energy Carolinas, Inc., Lead Lag Summary "Per Books" December 31, 2010 Test Year, Docket E-2, Sub_, El Item 14 ("Schedule El Item 14"). This schedule provides the lag and lead days by revenue and expense component used by Progress Energy Carolinas, Inc. ("PEC" or the "Company") in its cost of service filings. This schedule includes line references to a summary comparison to the underlying detail schedules, entitled Summary Comparison to Underlying Detail Schedules ("Summary Comparison Schedule"), which is provided in the Appendix with the workpaper schedules. The Appendix includes the Summary Comparison Schedule and the 45 detailed workpaper schedules that support the revenue lag and expense lead values. The Summary Comparison Schedule provides more detailed breakdowns of the revenue lags and expense leads calculated in this study. This schedule also provides references to the 45 detailed schedules that in turn provide the details for each of the revenue lag or expense lead calculations, as well as whether the lead or lag is calculated in the summary schedule. 1.2 Background In January 2011, Progress Energy Corporation ("Progress") engaged Ernst & Young ("EY") to prepare and support a detailed lead lag study for Progress Energy Carolinas, lnc.'s operations, including the total company, retail operations in the State of North Carolina, other retail operations, and wholesale operations. The study satisfies the requirements of the North Carolina Utility Commission ("NCUC" or the "Commission") to support PEC's request for a cash working capital allowance to be included in the Company's requested rate base for the retail operations in the State of North Carolina. This report presents the methodology and approach used in the study and the results covering the twelve-month period ending December 31, 2010. The revenue lag and expense lead calculations developed from this study can be used to estimate cash working capital requirements for other test years by appropriately weighting the components of the test year's revenue requirements. The Company last presented a lead lag study to the NCUC for the twelve-month period ending March 31, 1987. 1.3 Scope and purpose of the lead lag study Our scope was to prepare and support a detailed lead lag study that satisfies the NCUC requirements. The lead lag study is the method used at the NCUC to develop the cash working capital requirement. The purpose of the cash working capital requirement is to measure the average amount of capital, over Page 1 ill ERNST &YOUNG Quality In Everything We Do Executive summary and above the investments in plant, and other separately identified rate base items, provided by investors in the Company, to bridge the gap between the time expenditures are required to provide service and the time collections are received for the service. The inclusion of the cash working capital requirement in rate base is designed to provide a utility with an opportunity to earn a fair return on this additional capital invested in utility operations. Simply stated the lead lag study measures the difference in time frames between: (1) when service is rendered and the revenue for that service is received (revenue lag); and (2) when the costs in providing service are incurred (covering the entire cost service which includes items such as fuel and purchased power, labor, materials, services, taxes, depreciation and return on investment) and the time those costs are paid for (expense lead). The difference between these lag and lead periods is expressed in terms of days. The number of days so calculated multiplied by the average daily operating revenues or cost of service produces the cash working capital required by the Company. The cash working capital requirement is more comprehensive than simply financing the lag between Company payments and receipts, as investor capital is required to finance the lag in the recovery of the entire cost of service including depreciation and cost of capital. To fully identify the cash working capital requirements, to the amount calculated in the lead lag study we must add operational cash requirements and add or deduct any other requirements for or sources of cash working capital, such as prepayments, reserves and items capitalized prior to payment, that are not otherwise accounted for in rate base. The Company has informed us that these adjustments to cash working capital requirements have generally been considered apart from the lead lag study, so they are not generally considered in this lead lag study report. One exception is for pass through taxes. The primary pass through tax is the North Carolina utility sales tax, though the South Carolina franchise fees and a portion of the North Carolina general sales and use tax and the South Carolina sales and use tax are also pass through items. The Company collects these pass through taxes from customers in their bills and pays the tax to the State. The tax is not a Company expense because the Company is merely a conduit of the payments from customers to the State. But, to the extent the Company pays the tax before the funds are received from customers, investors in the Company need to provide the cash to finance the time between payment and recovery. 1.4 Standards and relation to the previous study The basic standard is that a requirement for cash working capital represents the amount necessary to provide the utility with an opportunity to earn a fair return on all capital invested in utility operations. Unless all capital supplied by investors has that opportunity, investors will not be fully compensated for the capital supplied and the objective of the cash working capital requirement will not be met. Consequently, the key test of the adequacy of the cash working capital requirement to be included in the rate base should be whether the inclusion of such an amount when added to net utility plant and other items includible in rate base will produce a fair representation of the capital on which there should be an opportunity to earn a return. Page 2 ill ERNST &YOUNG Quality In Everything We Do Executive summary The basic calculation approach of the lead lag study for developing the cash working capital requirement is to measure the difference in time frames between: (1) when service is rendered and the revenue for that service is received (revenue lag); and (2) when the costs in providing service are incurred (covering the entire cost service which includes items such as fuel and purchased power, labor, materials, services, taxes, depreciation and return on investment) and the time those costs are paid for (expense lead). The difference between these lag and lead periods is expressed in terms of days. The number of days so calculated multiplied by the average daily operating revenues or cost of service produces the cash working capital required by the Company. While the previous lead lag study was provided 23 years ago, the basic standard for a requirement for cash working capital, as well as the basic approach for calculating the lead lag study, remain unchanged. Over the last 23 years there have obviously been some changes in how operations are performed. But PEC's basic business remains unchanged. For example, on the revenue side the billing lag time, the time between the meter read and the sending of the bill, has been reduced from about four days in 1987 to less than one day due to automated and computerized processes. But, the revenue lag on retail electric sales is still the sum of the service lag, billing lag and collection lag. Further, almost all revenue still comes from sales of electricity (both retail and resale). For total PEC, sales of electricity accounted for 98% of total revenue in 1987 and still accounted for 97% of total revenue in 2010. On the expense side, PEC now incurs fuel and purchased power costs related to hedges and emission allowances, but fuel and purchased power (and their related costs) remains the largest component of O&M expense. Further, coal fuel costs remain the largest component of fuel costs. Turning to labor expenses, more PEC functions are being performed by Progress Energy Service Company ("PESC") employees, but the expense lead for labor expense is still calculated using payroll information (net pay, deductions and employee taxes), and almost the entire payroll in both 1987 and 2010 was paid on a biweekly basis. Labor expense has changed only modestly as a percent of total O&M expense, dropping from 16% in 1987 to 13% in 2010. Finally, to confirm the absence of any material changes to the operating and regulatory environments EY initially inquired about any material changes with certain Progress personnel. EY also performed a review of the Company's financial statements for the same purpose. As noted, EY identified that more services are now provided to PEC through an affiliated service company. The addition of the service company involvement is incorporated into the basic lead lag calculation approach. Specifically, for PESC labor costs included in PEC expenses for cost of service, we applied PESC payroll expense lags. For PESC purchases on behalf of PEC the cash transfer is immediate and so we applied the external supplier payment date to calculate the expense lead. For PESC expenses for PESC purposes that were subsequently allocated to PEC, we applied the intercompany payment timing to calculate the expense lead. Page 3 ill ERNST &YOUNG Quality In Everything We Do Executive summary 1.5 Key findings and clarifications The following sections provide a summary discussion of the most significant revenue lags and expense leads calculated and references the schedules in the Detailed Findings. On an aggregated basis, for total PEC the overall revenue lag is 37.75 days and the overall expense lead is 20.97 days for a net lag days of 16.78 days. Those 16.78 days of required cash times the daily requirement (the daily cost of service) of $13,484,414 produces a lead lag estimated cash working capital requirement of $226,308,343. For retail operations in North Carolina the revenue lag is 38.39 days and the expense lead is 20.68 days for a net lag days of 17.71 days. The daily requirement is $9,933,398 for a lead lag estimated cash working capital requirement of $175,906,944. While these are the aggregate results based on the year ended December 31, 2010 cost of service, they are calculated totals based on more detailed revenue lag and expense lead computations. It is important to realize that the key results of the lead lag study are the development of these more detailed revenue lags and expense leads for the revenue and expense components that can be applied to compute a lead lag study estimate of cash working capital requirements. With that in mind there are some important points to note about the calculation of the individual revenue lag and expense lead values. First, it is important to note that while some specific lead lag calculations can be based on information that is specific to the retail operations in North Carolina, most of the lead lag calculations are based on information that is provided in aggregate for PEC. In particular, with respect to retail sales of electricity, the service lag and the billing lag are calculated in the aggregate, but the collection lag experience is specific to the retail operations in North Carolina. Similarly, the revenue lags for other revenues from forfeited discounts (account 450) and miscellaneous service revenues (account 451), as well as the expense lead for interest on customer deposits, are specific to the retail operations in North Carolina due to the specific policies and rules for operations in the state of North Carolina. Also, expense leads for state income taxes are specific to North Carolina. Other revenue and cost data has been reported for PEC in the aggregate. In order to estimate revenue and expense data applicable to the NC retail jurisdiction, the Company routinely employs a jurisdictional separation study. PEC used the separation study to assign or allocate total PEC revenue and costs to the NC retail jurisdiction to compute total North Carolina retail jurisdictional revenues and costs. The cash working capital requirement developed using the lead lag study results is applied to the North Carolina retail jurisdictional allocation. If the North Carolina retail jurisdictional allocations of revenues and expenses were changed, the revenue lag and expense lead calculations developed from this study could still be used to estimate cash working capital requirements by appropriately weighting the revenue and cost of service items by the changed allocations. Second, to clarify the use and meaning of the terms lead and lag, by convention the time between when services are provided and payment is received is called the revenue lag, while the time between when expense is incurred to provide service and payment is made is called the expense lead. In truth most Page 4 ill ERNST &YOUNG Quality In Everything We Do Executive summary revenue and expense calculations are lags in the sense that service is provided or expense to provide service is incurred before payment is received or made (i.e., receipt or payment lags service). But, the convention is employed because payment of expense typically leads receipt of revenues. A positive expense lead means that expense is paid after the cost is incurred. Most expense items have a positive expense lead, although there are some expense items, such as settlement on fuel hedges and insurance, that have a negative expense lead because the expense is paid before the cost of the service is incurred. 1.6 Revenue lag The revenue lag measures the time between service delivery to customers and the collection of revenue for service from customers. For the year ending December 31, 2010 approximately 97% of North Carolina retail jurisdictional revenue was received from retail sales of electricity. For total PEC the percentage of revenue from retail sales of electricity was 82%, with another 15% coming from sales for resale. The revenue lag for retail sales of electricity is the sum of three components: (i) service lag, (ii) billing lag and (iii) collection lag. Though as noted the billing lag has been considerably shortened since the previous lead lag study, there have been no material changes to the Company's service, billings and collection procedures; or to its payment procedures for these services. The first component is the service lag. The Company reads the meters on a monthly cycle basis; therefore the average time between meter reads is 30.42 days (365 days in a year divided by 12 monthly meter reads). Dividing by two provides the midpoint in time or the average time between when service is provided and the meter is read, for a service lag of 15.21 days. (See summary comparison schedule line 5.) The second component of the total revenue lag is the time from the meter reading to when the customer is billed and the bill is posted in the Company's accounts receivable system. For most customers the bill is sent within the next business day after the meter is read (over 99% for custom bills and over 97% for cycle bills). We calculated the weighted average billing lag for these customer groups to be 0.55 days. (See summary comparison schedule line 6.) The third component of the total revenue lag is the period from the billing date to the time the customer pays their bill (i.e., to the date that the cash payments are credited on the accounts receivable records). This component of the revenue lag is measured by dividing average daily accounts receivable (based on a thirteen month average) by average daily sales. Collection policies for retail operations in North Carolina are governed by NCUC rules. The implementation of disconnection procedures can begin when residential customer bills become 25 days in arrears. For commercial and industrial customers the process begins after bills become 15 days in arrears. For the majority of customers, payments are received within 30 days. We calculated the retail operations in North Carolina collection lag to be 22.25 Page 5 ill ERNST &YOUNG Quality In Everything We Do Executive summary days. (See summary comparison schedule line 8.) For retail operations in South Carolina, the collection lag was 24.46 days. (See summary comparison schedule line 9.) Adding these three components together produced a total 38.01 day lag in the collection of revenues for retail electric services provided to cycle-read and custom billed customers on electric delivery rate schedules for retail operations in North Carolina. (See schedule El Item 14 page 3 line 1 and summary comparison schedule line 12.) For South Carolina the revenue lag is 40.22 days. (See schedule El Item 14 page 3 line 1 and summary comparison schedule line 13.) A question is sometimes raised whether float, defined as the time from when funds are received from customers until the funds clear the banks and are available to the Company, should also be added to the revenue lag. There are actually two floats, the second being when the Company pays for services by check. In this instance, the Company's cash requirements are reduced by the float. If float were added to the revenue lag, it would also need to be added to the expense lead. We have not considered float for either revenue collection or expense payment. Given the relative levels of electronic funds transfers in the Company's payments versus in its receipts, we are confident that the float for revenue is larger than the float for expense and so excluding float is a conservative assumption that cannot harm the ratepayer. As noted, another 15% of total PEC revenue is derived from sales for resale, although less than 1% of revenue for the retail operations in North Carolina comes from sales for resale. We looked at all PEC wholesale contracts to develop the revenue lag of 32.13 days. (see schedule El Item 14 page 3 line 4.) In addition, the Company records a variety of additional and miscellaneous revenues which are also applicable to PEC in total and to the NC retail jurisdiction. These include revenues such as from various customer charges such as for late payments (account 450), reconnect charges and new service charges (account 451); various fees such as additional facilities fees and rental fees for pole attachments (account 454); and revenue from transmission of electricity to others (account 456). To calculate the overall average revenue lag, we calculated the revenue lags for each of the additional and miscellaneous revenues, whether they were specific to retail operations in North Carolina or for total PEC. The total revenue lag for retail operations in North Carolina is 38.39 days. (See schedule El Item 14 page l line 1 and page 3 line 24.) For total PEC the revenue lag is 37.75 days. (See schedule El Item 14 page 1 line 1 and page 3 line 24.) 1.7 Expense lead There are several major categories of expense including: Operations and Maintenance (O&M) expenses Fuel Purchased Power Page 6 ill ERNST &YOUNG Quality In Everything We Do Executive summary Labor Regulatory Expense (account 928) Insurance (accounts 924 and 925) Other O&M, either specifically identified or sampled Depreciation and Amortization Taxes Other than Income Income Taxes Interest on Customer Deposits Net Operating Income 1.7.1 O&M - Fuel Fuel costs consist of natural gas supply, transport and hedges; emission allowances; coal fuel costs, and transportation and other; oil fuel costs and transportation and other; other coal and oil related expenses including reagents and byproducts such as limestone and gypsum; and nuclear waste disposal and nuclear fuel burn up. The Appendix includes the detailed support schedules for these items, which are schedules 9, 10 and 11. Summary comparison schedule lines 33 to 45 provide a summary of the detailed schedule results. The largest component of fuel is the fuel or commodity cost of coal, which accounts for approximately 46% of the total. Detail schedule 10 shows over 7600 coal commodity deliveries during 2010. The average expense lead for those deliveries was 25.64 days. (See summary comparison schedule line 38.) Another significant component of fuel cost is transportation and other costs of coal, which accounts for approximately 18% of the total fuel. Detail schedule 10 shows over 5300 coal transportation and other expense charges during 2010. The average expense lead for those expenses was 16.14 days. (See summary comparison schedule line 39.) The other large fuel component, accounting for approximately 20% of the total, is natural gas supplies. Natural gas supplies are billed on a monthly basis and are typically paid around the 25th of the following month for gas delivered during the previous month. As a result, not surprisingly the average natural gas supply expense lead calculated by taking the average of all monthly deliveries, was 39.99 days. (See summary comparison schedule line 34.) Conversely, natural gas transportation costs, which accounted for only a little over 1 % of total fuel costs, have an expense lead of 30.40 days (see summary comparison schedule line 35) as demand charges are typically paid on the 10th of the following month and transportation charges are typically paid on the 20th. Natural gas hedges accounted for another approximately 3% of total fuel costs. The expense lead for natural gas hedges is (7.01) days, indicating that the hedges are paid before the fuel is provided. This is because payment is due 3-5 business days after the publication of the trading index, which occurs at the beginning of the service period. (See summary comparison schedule line 36.) Page 7 ill ERNST &YOUNG Quality In Everything We Do Executive summary Emission allowances account for an immaterial amount of the total fuel cost, with only seven transactions and an average expense lead of 2.46 days. (See summary comparison schedule line 37.) Nuclear related costs comprise most of the rest of the fuel costs and are comprised of waste disposal costs and fuel burn up costs. Nuclear fuel is inventoried, so the lead lag study identifies the lag between recording the nuclear fuel as an asset and the payment of nuclear fuel invoices. Since those activities occur concurrently, the expense lead is 0 days. Disposal costs consist of quarterly payments made at the end of the month following the end of the quarter. Thus, the payment lag is comprised of half of the approximately 90-day service period plus about 30 days until payment, for a calculated expense lead of 75.09 days. (See summary comparison schedule line 43.) The average expense lead for all fuel expenses was 24.79 days. (See schedule El Item 14 page 2 line 2 and summary comparison schedule line 33.) 1. 7 .2 O&M - Purchased power PEC provided listings of all transactions for both its power purchase agreements and its cogenerator agreements. We weighted the individual invoices by the dollar amount of the invoice, resulting in an overall expense lead of 35.54 days. (See schedule El Item 14 page 2 lines 3-4 and summary comparison schedule line 47.) Note that the purchased power schedules provided netted purchases against sales for resale where applicable. 1. 7 .3 O&M - Labor Labor costs comprised approximately 13% of total O&M costs and 8% of the cost of service for PEC for the year ending December 31, 2010. Labor costs fall into three categories, net payroll, deductions from payroll, and employee taxes. Virtually the entire Company is paid on a bi-weekly payroll. The information provided indicated that approximately 87% of the total PEC labor expense was attributable to the PEC payroll, with 12% coming from the PESC payroll and approximately 1% from PEF. Since the composition of PESC employees is somewhat different than operating company employees (more staff functions) we looked at the expense leads for net payroll, deductions from payroll, and employee taxes for both PEC and PESC. For the net payroll we identified each pay period and the payment dates corresponding to that pay period. We also took into consideration any incentive compensation and the service period that the incentive compensation was attributed to. Similarly, for payroll related deductions we identified each of approximately 50 payroll deduction types and when the payments for each deduction type corresponding to each pay period were made. We performed similar analyses on employee taxes, looking at pay periods the taxes applied to and when the tax payments were made. Appendix schedule Page 8 ill ERNST &YOUNG Quality In Everything We Do Executive summary 14 provides the detailed calculations for PEC and schedule 15 provides the detailed calculations for PESC. A summary of the calculations is provided in the summary comparison schedule lines 53-64. The calculated overall labor expense lead was 29.14 days. (See schedule El Item 14 page 2 line 7 and summary comparison schedule line 53.) Note that some payroll is capitalized, but the amounts included in the cost of service for total PEC and for retail operations in North Carolina include only O&M labor. 1. 7.4 O&M Regulatory expense (account 928) The company provided the account 928 regulatory fees, which are paid on a quarterly or an annual basis. The calculated average expense leads were NC Retail 90.15 days, SC Retail 555.00 days, Hydro 527.00 days and Transmission 134.00 days. (See schedule El Item 14 page 2 line 12 and summary comparison schedule lines 67-70.) 1. 7.5 O&M Insurance (accounts 924-925) The insurance included primarily property, workers compensation, liability and other risk policies. The company provided a list of policies that included 24 policies. Most insurance policies are for an annual period, and payment is generally due at the beginning of the policy period. Thus there is a prepayment of approximately 6 months. Consistent with that general logic, the calculated expense lead for the insurance policies was (177.25) days, meaning that the expense was paid on average 177.25 days before the midpoint of the service period or about six months. (See schedule El Item 14 page 2 line 13 and summary comparison schedule line 71.) 1. 7 .6 All Other O&M The all other O&M category includes the following accounts: 1. 2. 3. 4. 5. Benefits (account 926) Uncollectible accounts (account 904) NRC fees (from account 524) Other charges from PESC Other remaining O&M For benefits, we identified 17 benefit categories. These benefit categories are detailed in Appendix schedules 18-34 and are summarized on summarize reconciliation schedule lines 70-88. For each benefit category we determined the midpoint of the service period and calculated the expense lead until the payment was actually made (in some instances payments were prepaid). Most of the payment dates are tied to payment schedules with providers and actual payment dates. The calculated expense lead for benefits was 17.83 days. (See summary comparison schedule line 74.) Page 9 ill ERNST &YOUNG Quality In Everything We Do Executive summary Uncollectible accounts expenses result from the timing of the write off of customer accounts receivable as uncollectible and are by NCUC practice valued at 0 days expense lead. (See summary comparison schedule line 93.) We calculated expense lead days for NRC fees for each of PEC's three nuclear power stations. The weighted average expense lead for the stations was 26.00 days. (See summary comparison schedule line 94.) As noted earlier, since the prior lead lag study, more services are provided to PEC by PESC. PESC incurs expenses to perform its functions, which are in turn allocated to the operating companies such as PEC. This expense category accounted for approximately $37.8 million of PEC's cost of service in 2010. (See summary comparison schedule line 99.) These allocated expenses are settled through the intercompany payment process. We received the monthly service periods, bill dates and pay dates for intercompany transactions and calculated an average expense lead of 56.71 days. This expense lead was applied as the average expense lead for the PESC expenses allocated to PEC. (See summary comparison schedule line 99.) To determine the expense lead for other remaining O&M not specifically analyzed, PEC performed a data query for all payments processed through the Pass Port payables system for PEC. Excluded from the information were data from the Fuel Works and Payroll feeder systems, which were captured separately in the lead lag study. Also excluded were income tax payments. Data collection was targeted for the 2010 financial reporting year. The query was written so that it identified and included any transaction with an invoice date of 2010 regardless of the actual pay date. The file includes a single transaction line for each charge code processed; therefore a single invoice may have multiple lines of data. In order to eliminate the possibility of duplication of data separately reported in the lead lag study, those items needed to be removed from the A/P data file. To accomplish this, three screens were used. First, the most direct approach was to leverage the invoice numbers and match the separately reported values to the A/P file contents. This method was used where feasible. The second screen was to match vendor numbers for the separately reported values to the A/P content files. The third screen was to identify those items that are either non-operating or for other purposes should not be included in the data. This was accomplished through cross referencing using the USofA FERC accounts to flag those accounts for review. The file ultimately included 97,805 line items with a total value of approximately $458 million. From that universe a stratified random sample in ten strata based on the size of the line item was pulled. For each item sampled the supporting documentation was pulled and reviewed. When available the service period used was the service period identified in the supporting documentation. When that was not available the shipping date was used. When that was also not available other useful reference dates, such as outage dates or storm restoration dates were used. If no other information was available, the Page 10 ill ERNST &YOUNG Quality In Everything We Do Executive summary invoice date was used. The paid dates were taken from the Company's payables system. The sample size used was 537. The estimated weighted average expense lead for the universe of remaining other O&M expenses developed from the sample was 32.65 days, plus or minus 4.20 days with 90% confidence. (See reconciliation summary line 100.) The expense lead for all other O&M is the weighted average of the five components - benefits, uncollectible accounts, NRC fees, other charges from PESC and other remaining O&M. That expense lead is 30.47 days. (See schedule El Item 14 page 2 line 14 and summary comparison schedule line 101.) 1.7.7 Total O&M The weighted average expense lead for total O&M for total PEC is 26.16 days. (See reconciliation schedule line 102.) The weighted average expense lead for total O&M for retail operations in North Carolina, based on the different weightings of the O&M cost components in the North Carolina retail operations as compared to the weightings in total PEC, is 25.63 days. (See schedule El Item 14 page 2 line 16.) 1. 7.8 Depreciation and amortization Expenses for depreciation and amortization are the result of prior cash transactions that are not initially charged to expense. A 0 day expense lead is applied because the expense is deducted from rate base when the expense is recorded. By way of example, investors supply cash for capital investments such as plant assets. A cash transaction occurs when a plant asset is acquired. The plant asset is included in rate base and the cash investment earns a return until depreciation expense is recorded. When depreciation expense is recorded, the amount of the expense is removed from rate base and the expense becomes recoverable in cost of service. But the cash is not recovered until later after revenues are collected (e.g., after the revenue lag). Thus, depreciation expense is included in the lead lag study with a 0 day expense lead to provide a return for the period from when the depreciation expense is booked and removed from rate base until it is recovered from revenues. 1.7.9 Taxes other than Income Expenses leads for taxes other than income taxes measure the difference between the timing of the service period covered by the taxes and the payment of the tax assessments. Some taxes are assessed and paid close in time to the service period and so have a small expense lead. Others, such as property taxes, tend to be paid on an annual basis at the end of the service year and so have an expense lead of approximately six months. The details of the calculations of the expense leads for taxes other than income are provided in Appendix schedules 38-42 and are summarized in the summary comparison schedule lines 104-118. Schedule El Item 14 page 2 lines 19-27 show the expense leads by grouping Page 11 ill ERNST &YOUNG Quality In Everything We Do Executive summary of tax used in the cost of service presentation. The overall average expense lead on taxes other than income for the period ending December 31, 2010 for total PEC was 68.64 days, and for the retail operations in North Carolina was 62.90 days. (See schedule El Item 14 page 2 line 27.) 1.7.10 Income taxes Income taxes have two major components, current and deferred income taxes. In turn, current income taxes include taxes for the current year and taxes for prior periods. The expense lead for current income taxes for the current year is the result of the statutory payment dates. That expense lead is 36.50 days for both state and federal income taxes. (See summary comparison schedule lines 121, 129.) The expense lead for taxes for prior periods is calculated as the difference between a service period of the prior year and the statutory date for extension payments. The expense lead is 256 days for federal and state of South Carolina taxes, and 287 days for state of North Carolina taxes. (See summary comparison schedule lines 123, 124 and 130.) The expense lead for deferred taxes is 0 days. Similar to the rationale for depreciation expense, the deferred tax expense lead is 0 days because it is deducted from rate base when the expense is recorded. 1. 7 .11 Interest on customer deposits Interest is credited to customers who are required to maintain deposits, and the interest is paid either when the deposit is returned or at periodic intervals. The expense lead on customer deposits in North Carolina is 137.50 days and in South Carolina is 364.50 days. (See schedule El Item 14 page l line 12 and summary comparison schedule lines 134-136.) 1.7.12 Net operating income Net operating income is the return on invested capital, just as depreciation expense is a return of invested capital. Like depreciation expense, a 0 day expense lead was assigned to net operating income in recognition of the fact that the return is earned when the service is provided. But, the cash is not recovered until after the revenue lag. When net operating income is recorded it is initially reinvested. The investor is entitled to a return on that investment during the revenue lag. Thus the entire net operating income should be included in the lead lag study with a 0 day expense lead. Because the return is earned when the service is provided, it would be inappropriate to consider subsequent below the line treatment of net operating income. Therefore we did not further analyze the subsequent use of net operating income for interest, dividends or reinvestment. 1.7.13 Cash working capital impacts of pass through items As noted, to fully identify the cash working capital requirements, to the amount calculated in the lead lag study we must add operational cash requirements and add or deduct any other requirements for or Page 12 ill ERNST &YOUNG Quality In Everything We Do Executive summary sources of cash working capital. One item the Company has not included elsewhere and is therefore considered here is pass through taxes. Pass through taxes are similar to taxes other than income except the payment is due from customers not the company. The primary pass through tax is the North Carolina utility sales tax, though the South Carolina franchise fees and a portion of the North Carolina general sales and use tax and the South Carolina sales and use tax are also pass through items. The Company collects these pass through taxes from customers in their bills and pays the tax to the State. The tax is not a Company expense because the Company is merely a conduit of the payments from customers to the State. But, to the extent the Company pays the tax before the funds are received from customers, investors in the Company need to provide the cash to finance the time between payment and recovery. The impact on total PEC cash working capital requirements due to pass through taxes is: NC Utility tax $1,262,604 NC General sales & use tax $ SC Sales & use tax $ (444,862) SC Franchise fees $ (249,227) 112 (See summary comparison schedule lines 142-145.) Page 13 ill ERNST &YOUNG Quality In Everything We Do Conclusion This lead lag study separately computes the revenue lag days associated with revenue collection from retail customers, sales for resale and various other revenues; and the expense lead days associated with all elements of the cost of service including fuel, labor, other O&M, depreciation and amortization, taxes other than income, income taxes and net operating income. These revenue lags and expense leads are combined to determine the cash working capital requirements. The schedules in the detailed findings section of this report provide a detailed identification of revenue lags and expense leads calculated in this lead lag study. Although these calculations were performed for the twelve-month period ending December 31, 2010, these same revenue lag and expense lead day parameters could be applied to the detailed revenue requirements for a more current test year to provide a reasonable basis for estimating the test year cash working capital requirements. In addition to calculating the revenue lags and expense leads documented in the detailed schedules found in the appendix, we tested the reasonableness of the results based on both a logical review of the revenue and expense items using business operating parameters, and on a comparison to historical results. For example, on the revenue side, the revenue lag for retail sales of electricity is the sum of the service, billing and collection lags. With twelve billings in a year the average service lag is 15.21 days (365 days divided by 12 meter reads, with the result divided by 2 for the midpoint of the service period). With over 97% of bills issued within one day the billing lag is now under one day and was calculated as 0.55 days. Finally, with late payments defined as 25 days for residential customers and 15 days for commercial and industrial customers, one would expect the average collection lag to be modestly under 25 days. The collection lag for retail operations in North Carolina was calculated to be 22.25 days. This resulted in the overall revenue lag for retail electric sales for retail operations in North Carolina of 38.01 days. Further, although the previous lead lag study dates back to 1987 and so should be given only modest consideration, the revenue lag for retail electric sales for retail operations in North Carolina was 38.98 days. Thus the revenue lag seems reasonable. On the expense side, fuel is the largest component of expense. For coal deliveries, standard industry practice is for payment to be made around 25 days after delivery, and the calculated coal fuel expense lead is 25.64 days. Typical industry practice is for coal transportation to be paid about 15 days after delivery, and the calculated other coal expense lead (which is primarily the transportation expense) is 16.14 days. Similarly, standard industry practice is for natural gas costs to be paid approximately 25 days after the end of the delivery month, or about 40 days after the midpoint of the service period, and the calculated natural gas supply expense lead was 39.99 days. The calculated weighted average fuel expense lead taking into account all of the fuel expense components is 24.79 days. In comparison, the weighted average fuel expense lead in the prior lead lag study was 22. 79 days. Finally, purchased power expenses are typically paid 15-25 days from invoice date, and invoices are typically sent at the end of the month adding another 15 days for a typical total payment lag of 30-40 days. The calculated purchased power expense lead was 35.54 days. In the prior lead lag study interchange power purchases had an expense lead of 26.20 days. Page 14 ill ERNST &YOUNG Quality In Everything We Do Conclusion Turning to labor expenses, the total PEC labor expense lead is 29.14 days. Approximately half of the total dollar expense is PEC net payroll. The PEC net payroll expense lead is 24.07 days. The PEC net payroll contains two main parts, base compensation and incentive compensation. Base compensation accounts for approximately 94% of the total. Base compensation is paid on a bi-weekly basis with an average expense lead of 11.5 days. Incentive compensation accounts for only about 6% of the total but the compensation applies to prior periods and has a lengthy average expense lead of approximately 225 days. The resulting weighted average results in the PEC net payroll expense lead of 24.07 days. The prior lead lag study had a labor expense lead for base compensation of 13.80 days, but did not separately break out incentive compensation. With respect to taxes other than income taxes, the two largest components are the North Carolina gross receipts tax and property taxes. The gross receipts payments are comprised of two monthly payments, an estimated payment that is paid around the twentieth of the month and so has an expense lead of about 5 days, and a true up payment that is paid around the twentieth of the following month and so has an expense lead of about 35 days. The weighted average calculated expense lead is 17.60 days, which is reasonable as the estimated payments are on average larger than the true up payments. This tax was not an element of the 1987 study. Property taxes are generally paid annually in arrears at the end of the year. Thus the expense lead is approximately one half of a year. Consistent with that logic, the calculated property tax expense lead is 184.15 days. The prior lead lag study calculated a property tax expense lead of 185.13 days. Income tax expense leads are based on the statutory tax payment due dates. Finally, certain components of the cost of service are included with 0 day expense leads. These items include depreciation and amortization, net operating income, and deferred income taxes. To recap the reasoning, both depreciation and net operating income are the result of prior cash investment. Depreciation is the return of investment and net operating income is the return on investment. Investment in plant and other capital assets earns a return while the amounts are included in rate base. When depreciation is recorded the amount is immediately removed from rate base. The depreciation becomes recoverable, but it is not recovered in revenues until later, after the revenue lag. To account for the investor cash that is required during this period, depreciation expense is included with a 0 day expense lead. Similarly, net operating income is earned when it is recorded. Once recorded, the net operating income is immediately reinvested in the company and at some later date either remains reinvested or is used for interest or dividend payments. But, like depreciation expense, the cash is not received until later, after the revenue lag. To account for the investor cash that is required during this period, net operating income is included with a 0 day expense lead. In an analogous manner, deferred income taxes are immediately removed from rate base when recorded, but are the result of a prior cash investment and are not recovered until after the revenue lag. To summarize, we have calculated the revenue lags and expense leads documented in the detailed schedules found in the appendix and summarized in the summary schedules, and we have tested the Page 15 ill ERNST &YOUNG Quality In Everything We Do Conclusion reasonableness of the results based on both a logical review of the revenue and expense items using business operating parameters, and on a comparison to historical results. Based on our analyses, we conclude that these revenue lags and expense leads can be combined to determine the cash working capital requirements, and that the lead lag study fully supports PEC's request for a cash working capital amount to be included in rate base. Further, although these calculations were performed for the twelve-month period ending December 31, 2010, these same revenue lag and expense lead day parameters could be applied to the detailed revenue requirements for a more current test year to provide a reasonable basis for estimating the test year cash working capital requirements. Page 16 ill ERNST &YOUNG Quality In Everything We Do Detailed findings The Detailed Findings are provided in Schedule "Progress Energy Carolinas, Inc., Lead Lag Summary "Per Books" December 31, 2010 Test Year, Docket E-2 Sub_, El Item 14. This schedule provides the revenue lags and expense leads for the major components of the revenue requirement as reported in the cost of service filings. It contains three parts, an overall income statement summary, an expense summary and a revenue summary. All calculated revenue lags and expense leads have line references to a summary comparison schedule. Page 17 ill ERNST &YOUNG Quality In Everything We Do Appendix The Appendix contains the detailed workpaper schedules that support the revenue lag and expense lead calculations, and is comprised of a summary comparison schedule to the underlying detail schedules and 45 categories of supporting schedules. The following table summarizes the lead lag information contained in the schedules. Summary Comparison to Underlying Detail Schedules Schedule 1 Retail Revenue Schedule 2 Billing Lag Schedule 3 PEC Term Wholesale Revenue Schedule 4 Discounts and Miscellaneous Services Schedule 5 Pole Rent Revenue Schedule 6a Lighting AFC Revenue Schedule 6b Non-lighting AFC Revenue Schedule 7a Rent Other - Premium Power Revenue Schedule 7b Rent Other - Facility Fees Schedule 8 Transmission & Ancillary Revenue Schedule 9 Natural Gas & Purchased Power (incl Cogen QF) Schedule 10 Coal & Oil Schedule 11 Nuclear Waste Disposal Schedule 12 Cogen Schedule 13 Purchased Power Net Receipts Schedule 14 PEC Payroll and Deductions Schedule 15 Svc Co Payroll and Deductions Schedule 16 Regulatory Fees Schedule 17 insurance Policies Page 18 ill ERNST &YOUNG Quality In Everything We Do Appendix Schedule 18 United Healthcare Schedule 19 Blue Cross Blue Shield - Florida Schedule 20 Blue Cross Blue Shield - Carolinas Schedule 21 Benefits Administrative Schedule 22 Benefits Receipts from Third Parties Schedule 23 Employer Match 40 l(k) Schedule 24 CatalystRX Pharmacy Rebates Schedule 25 Medicare Part D Subsidy Schedule 26 Parking Reimbursement Plan Schedule 27 Prudential Admin Fees Schedule 28 Relocation Schedule 29 Value Options Schedule 30 Dental Benefits Schedule 31 HAS Seed - Mellon Trust Schedule 32 Liberty Mutual Schedule 33 Service Awards Schedule 34 Long Term Incentive and Deferred Comp Schedule 35 Harris and Brunswick License Fees Schedule 36 Robinson License Fees Schedule 37 lntercompany Timing Gaps Schedule 38 Property Tax - NC Schedule 39 Property Tax - SC Page 19 ill ERNST &YOUNG Quality In Everything We Do Appendix Schedule 40 Taxes - Other than Income Schedule 41 Taxes - Other than lncome_All Other 408 Taxes Schedule 42 PEC Payroll Tax Schedule 43 Federal & State Income Tax Schedule 44 interest on Customer Deposits Schedule 45 Other O&M Page 20 ill ERNST &YOUNG Quality In Everything We Do Ernst & Young Assurance I Tax I Transactions I Advisory About Ernst & Young Ernst & Young is a global leader in assurance, tax, transaction and advisory services. Worldwide, our 144,000 people are united by our shared values and an unwavering commitment to quality. We make a difference by helping our people, our clients and our wider communities achieve their potential. Ernst & Young refers to the global organization of member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit www.ey.com. Ernst & Young LLP is a client-serving member firm of Ernst & Young Global and of Ernst & Young Americas operating in the US. About Ernst & Young s Assurance Services Strong independent assurance provides a timely and constructive challenge to management, a robust and clear perspective to audit committees and critical information for investors and other stakeholders. The quality of our audit starts with our 60,000 assurance professionals, who have the experience of auditing many of the world's leading companies. We provide a consistent worldwide audit by assembling the right multidisciplinary team to address the most complex issues, using a proven global methodology and deploying the latest, high-quality auditing tools. And we work to give you the benefit of our broad sector experience, our deep subject matter knowledge and the latest insights from our work worldwide. Its how Ernst & Young makes a difference. (C) 2010 Ernst & Young LLP. All Rights Reserved. 1010-1195298 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For the test year ended December 31, 2016 15. None Item No.15 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For the test year ended December 31, 2016 16. Item No.16 a. Provide an analysis of Account 930 - Miscellaneous General Expenses, Account 913 - Advertising expenses, and Account 426 - Other Income Deductions for the test year. This data should be presented as shown in Format 16 attached. Provide detailed workpapers in support of the analyses. As a minimum, the workpapers should show the date, vendor, reference (i.e., voucher no., etc.) dollar amount and brief description of each expenditure. With regard to Account 913, Advertising Expense, the purpose of each expenditure should be shown. Detailed analyses of Accounts 930, 913 and 426 are not required for amounts ofless than $1,000 provided the items are grouped by classes as shown in Format 16 attached. b. With regard to association dues charged to Account 930 - Miscellaneous General Expense, provide the following: 1. Justification for inclusion of said dues in the company's cost of service 2. Explanation of the use of said dues by the association receiving the dues 3. Explanation of purpose and objectives of the association receiving the dues from the company 4. Current annual budget of the association receiving dues from the company by major category of activity, e.g., research, education, administration, lobbying, etc. c. List all dues and contributions charged to operating and/or non-operating expense accounts during the test year which have not been specifically identified elsewhere herein. In response to 16a, see attached "DEP Rate Case El 16aAnalysis of Misc General Expenses, Other Income Deductions and Advertising Expenses" In response to 16b, see attached "DEP Rate Case El 16b Industry Association Dues" In response to 16c, see attached "DEP Rate Case El 16c Dues and Contributions" DUKE ENERGY PROGRESS, LLC Docket E-2, Sub 1142 NCUC Form E-1 Data Request For the test year ended December 31, 2016 ($ in $000's) Item No.16A Analysis of Account 930 - Miscellaneous General Expenses 930200 930210 930220 930230 930240 930250 930600 930700 930800 930940 Misc General Expenses Industry Assoc Dues (a) Exp of Servicing Securities Dues to Various Organizations Director's Expenses Buy/Sell Transf Employee Homes Leased Circuit Charges - Other Research & Development R&D - Alternative Energy General Expenses Total (37,092) 790 136 279 977 3,760 1 119 1,330 163 $ Analysis of Account 913 -Advertising Expenses Analysis of Account 426 - Other Income Deductions 426100 Donations 426200 Life Insurance Expense 426201 Coli Loan Interest 426300 Penalties 426400 Exp/Civic & Political Activity 426540 Employee Service Club Dues 426510 Other 426551 Impairment and Other Rel Chgs 426553 PP&E Impairment Total Notes: (a) see detail in item 16b (29,538) 314 $ 37,429 (3, 178) 2,100 700 2,526 1 928 248 634 $ 41,389 DUKE ENERGY PROGRESS, LLC Item No.16b Docket E-2, Sub 1142 NCUC Form E-1 Data Request For the test year ended December 31, 2016 Line No. 1 Amount ($Thousands) Edison Electric Institute 789 All Other (includes Service Company Allocations and various other 2 miscellaneous association costs) 3 Total 1 790 1) Edison Electric Institute (EEi) advocates public policy in legislative and regulatory arenas and works to expand markets for members' profitability. EEi provides advocacy, authoritative analysis, and critical industry data to its leader audiences. EEi provides forums for member company representatives to discuss issues and strategies to advance the industry and to ensure a competitive position in a changing marketplace. Being a member of this organization allows DEP to participate in and have access to the latest electric power research and development that allows it to better serve its customers. [See Attachment A for a copy of the EE/ budget for 2017 provided by EE/.] DUKE ENERGY PROGRESS, LLC Docket E-2, Sub 1142 NCUC Form E-1 Data Request For the test year ended December 31, 2016 Item No. 16b Attachment A REDACTED Edison Electric Institute (EEI) 2017 Budget ($ Millions) DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For the test year ended December 31, 2016 Account 0524000 0524000 0921100 0557000 0921100 0921100 0593000 0921100 0921100 0921100 0511000 0912000 0921100 0921100 0500000 0910100 0921100 0921200 0921200 0921100 0921100 0921100 0921100 0921100 0910100 0921200 0921100 0549000 0921100 0520000 0921100 0921100 0557000 0921100 0921100 Recipient INSTITUTE OF NUCLEAR POWER OPERATIONS NUCLEAR ENERGY INSTITUTE CHAMBER OF COMMERCE OF THE USA CONSORTIUM FOR ENERGY EFFICIENCY CORPORATE EXECUTIVE BOARD THE CONFERENCE BOARD INC NATIONAL JOINT UTILITIES BEST PRACTICE INSTITUTE INC GREENTECH MEDIA INSTITUTE FOR SUPPLY MANAGEMENT CONSTRUCTION USERS ROUNDTABLE NORTH CAROLINA BIOSCIENCES ORGANIZATION WOLTERS KLUWER FINANCIAL SERVICES INC ENERGY STORAGE ASSOCIATION SNL FINANCIAL LLC NATIONAL COUNCIL OF TEXTILE ORGANIZATION NATIONAL SAFETY COUNCIL THE BUSINESS COUNCIL E4 CAROLINAS THE GRIDWISE ALLIANCE INC SMART GRID CONSUMER COLLABORATIVE ASSOCIATION OF EDISON ILLUMINATING ASSOCIATION OF CORPORATE COUNSEL NORTH CAROLINA STATE UNIVERSITY ENVISION CHARLOTTE THE CONFERENCE BOARD INC AMERICAN BENEFITS COUNCIL LOWER NEUSE BASIN ASSN INC SOUTHEAST LABOR AND MANAGEMENT PUBLIC NORTH CAROLINA DEPARTMENT OF ENVIRONMENTAL QUALITY FINANCIAL EXECUTIVES INTERNATIONAL MCDERMOTT WILL & EMERY LLP ASSOCIATION FOR THE ADVANCEMENT OF SUSTAINABILITY IN HIGHER EDUCATION CURTISS-WRIGHT FLOW CNTRL CORP-SCIENTECH NORTH CAROLINA STATE UNIVERSITY TOTAL DUES IDENTIFIED BY VENDOR (NOT IN 16A OR 16B) VARIOUS VARIOUS VARIOUS VARIOUS VARIOUS CHARGES TO EMPLOYEE EXPENSE REPORTS< $1,000 MISCELLANEOUS DUES WITHOUT VENDOR DETAIL CHARGES TO EMPLOYEE EXPENSE REPORTS> $1,000 (21 items) SERVICE COMPANY ALLOCATIONS WITH VENDOR DETAIL< $1,000 (13 items) DIRECT CHARGES WITH VENDOR DETAIL< $1,000 (7 items) TOTAL DUES NOT IDENTIFIED BY VENDOR OR< $1,000 (NOT IN 16A OR 16B)* IDENTIFIED IN 16A OR 16B Item no. 16c Amount 4,398,017 1,503,342 41,650 36,447 34,319 35,554 12,250 10,122 9,679 8,334 7,250 6,757 6,009 5,625 5,334 5,000 4,874 4,760 4,442 3,830 3,830 3,601 3,332 3,064 2,975 2,071 1,935 1,816 1,489 1,310 1,190 1,190 1,114 1,095 1,050 6,174,655 145,517 119,498 34,477 5,453 1,773 306,717 6,481,372 oThe General Ledger does not provide detail at the vendor level for employee expense reports, certain service company allocations, and other miscellaneous journal entries that were booked outside of the accounts payable subledger. DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For the test year ended December 31, 2016 17 Item No.17 The amount of contributions for political purposes (in cash or services) if any. Please see attached "DEP Rate Case El 17 Political Contributions" DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For the test year ended December 31, 2016 Item no.17 Amount Allocated to Duke Energy Progress, Jurisdiction ORGANIZATION Carolina Carolina Carolina Carolina Carolina Carolina Carolina Carolina Carolina Carolina Carolina Carolina Carolina South Carolina Chamber of Commerce SC Business & Industry Political Education Committee American Legislative Exchange Council South Carolina Manufacture~s Alliance Marlboro County Coordinating Council SC House Democratic Caucus SC Republican House Caucus SC Republican House Caucus South Carolina Senate Democratic Caucus South Carolina Senate Republican Caucus Blue Ridge Electric Cooperative. Inc SC Legislative Black Caucus Total South Carolina Political Donations $31,000 $10,000 $10,000 $8,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $4,500 $3,500 $102,000 North North North North North North North North North North North North North North North Carolina Carolina Carolina Carolina Carolina Carolina Carolina Carolina Carolina Carolina Carolina Carolina Carolina Carolina Carolina North Carolina Chamber Carolina Leadership Coalition Carolina Leadership Coalition Carolina Partnership for Reform, Inc. North Carolina Chamber Carolina Partnership for Reform, Inc. Junior League of Raleigh, Inc. State Government Leadership Foundation North Carolina Legislative Black Caucus The John W Pope Civitas Institute North Carolina Free Enterprises Triangle Community Foundation Wo~d Affairs Council of Charlotte Alliance of North Carolina Black Elected Officials N&O Circulation Total North Carolina Political Donations $100,000 $50,000 $50,000 $50,000 $25,000 $25,000 $25,000 $25,000 $15,000 $5,000 $5,000 $5,000 $3,000 $2,500 $1,511 $387,011 Federal Federal Federal Federal Federal Federal Federal Federal Federal Federal Federal Federal Federal Federal Federal Federal SC House Democratic Caucus Nuclear Energy Institute, Inc Edison Electric Institute Republican Governors' Association Democratic Governors' Association Chamber of Commerce of the USA Senate Leadership Fund Edison Electric Institute The Business Roundtable Chamber of Commerce of the USA Coal Utilitzation Council Coal Utilitzation Council Center for Innovative Policy Republican Governors' Association Congressional Black Caucus Foundation Politico, LLC Edison Electric Institute LLC Invoice Amount South South South South South South South South South South South South South Purpose $1,488 $2,400 $2,473 $2,160 $5,000 $1,200 $1,200 $1,200 $1,200 $2,400 $2,400 $1,080 Membership Dues (Lobbying portion) 2016 Membership Private Sector Washington Club & Energy, Environment and Agriculture Task Force 2016 Membership Dues Hurricane Matthew Donation 2016 Membership Dues 2016 Contribution Business Roundtable membership Sponsorship of 2016 Legislative Classic 2016 Senate Democratic Caucus Membership Program 2016 Membership Dinner Sponsorship -----~$8_4_0_ Corporate Roundtable 2016 Membership $25,041 $12,000 $50,000 $25,000 $50,000 $7,250 $12,500 $12,500 $12,500 $7,500 $2,500 $2,500 $2,000 $857 $1,250 Membership Renewal (Lobbying portion) Annual Membership Annual Membership Annual Contribution Energy and Environmental Management Conference Annual Contribution Sponsorship of North Carolina Governo~s Inaugural Ball General Support Sponsorship of 2016 Scholarship Event Conservative Leadership Conference Sponsorship 2016 Membership Renewal Luncheon Sponsorship Table Sponsorship - Dinner Sponsorship 2016 NC Black Summit -----,-~$1~,5~1~1~ Subscription for The Insider, a political publication $4,601,598 $516,838 $275,000 $250,000 $250,000 $150,000 $139,500 $115,150 $75,000 $60,000 $60,000 $40,000 $40,000 $35,000 $32,295 $30,000 Page 1 $199,868 $52,617 $131,219 $68,008 $59,500 $59,500 $35,700 $2,352 $27,406 $17,850 $7,140 $7,140 $9,520 $9,520 $8,330 $4,496 $7,140 2016 Membership Dues (Lobbying Portion) 2016 Membership Dues (Lobbying Portion) 2016 Membership Contribution Membership Renewal Annual membership dues (lobbying portion) General Contribution Utility Solid Waste Activities Group Dues (Lobbying Portion) Annual Dues Cybersecurity Sponsorship (Lobbying Portion) 2016 Steering Committee membership dues (lobbying portion) 2017 Steering Committee membership dues (lobbying portion) DNC Convention via Democratic Governors Association RNC Convention via Republican Governors' Association Sponsorship of Awards Dinner Federal Political Pro News Service Republican Convention Package DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For the test year ended December 31, 2016 Item no.17 Amount Allocated to Duke Energy Progress, Jurisdiction Federal Federal Federal Federal Federal Federal Federal Federal Federal Federal Federal Federal Federal Federal Federal Federal Federal Federal Federal Federal Federal Federal Federal Federal ORGANIZATION Indiana Society of Washington National Governors' Association for Best Practices National Governors' Association for Best Practices North Carolina Society of Washington The Chamber of Commerce of the USA Edison Electric Institute Women in Government Conventions2016 LLC Republican Governors' Association The Alpine Group Edison Electric Institute Congressional Black Caucus Political Education & Leadership Institute Edison Electric Institute Harmon Killbrew-Danny Thompson Memorial National Black Caucus of State Legislators National Black Caucus of State Legislators Red River Productions, LLC The International Students' House Western Governors' Association Southern States Energy Board Women in Government Chic Productions, LLC Bloomberg Finance, LP North Carolina Society of Washington Total Federal Political Donations LLC Invoice Amount $3,570 Annual Membership $2,380 TUNICA 2016 Mississippi Policy Conference $2,380 $2,380 $2,473 $2,380 $2,380 $2,380 $2,473 $1,237 $1,237 $952 $379 2016 Joint Sponsorship of Dinner Sponsorship 2016 NBCSL Corporate Round Table Dues Energy Summit RNC & DNC Convention Charity Events Sponsorship Funding for ISH Global Leadership Awards Dinner Sponsorship 2016 Sponsorship 2016 Advanced Tech Summit Tickets to the Congressional Black Caucus Legislative Conference BGOV License ----~___,_$2"'3'"'8- Membership $579,407 $6,004 Total Other Political Donations less than $1,000.00 (43) Grand Total Sponsorship of Reception Corporate Fellows Contribution - 2016 Corporate Fellows Contribution - 2017 Sponsorship of Reception Cybersecurity Sponsorship (Lobbying Portion) Democratic Convention Package 2016 Business Council Membership Sponsorship $3,570 Sponsorship for Republican National Convention $3,151 Democratic Convention Hotel Package $13,240 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $5,000 $5,000 $4,000 $1,593 $1,000 $6,990,214 Purpose $5,553 $6,183 $5,950 $5,553 $2,083 $4, 760 $4,760 $3,570 $25,000 $25,000 $25,000 $25,000 $25,000 $20,000 $20,000 $15,000 $15,000 $15,000 $7,479,225 $810,320 Note 1: All charges were booked to Other Income Deductions accounts 426.1/426.4 with the exception of the Coal Utilization Research Council charges which were charged to 921.2 in 2016. In addition, the Republican Governo~s Association Annual Membership charge retains a small portion in 921. The origianl invoice of $15,000 was booked to FERG account 921. A correction was made to move this to FERG account 426 but a different allocation factor was used, leaving $238.50 in FERG account 921. The $238.50 was assigned away from NC retail in the Cost of Service Study and therefore is not included in this rate request. Note 2: Invoice Amount may include charges that are not related to political activity. Only the portion of the amount that is political in nature and allocated to DEP, LLC is shown in the amount allocated column. Page 2 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For the test year ended December 31, 2016 18. For For For For For Item No.18 a. A statement describing the applicant's lobbying activities and a schedule showing the name of the individual, his salary, and all company-paid or reimbursed expenses or allowances and the account charged for all personnel whose principal function is that of lobbying, whether it be lobbying on the local, state, or national level. The total expenses of registered lobbyist should show the portions allocated both above and below the line. b. A schedule showing the following information regarding the applicant's investments in subsidiaries and joint ventures for the test year and the year preceding the test year with each year shown separately: 1. Name of subsidiary or joint venture 2. Date of initial investment 3. Amount and type of investment made for each of the two (2) years included in this report 4. Balance sheet and income statement for the test year and the year preceding the test year. (Where only internal statements are prepared, furnish copies of these.) 5. Show on a separate schedule all dividends or income of any type received by applicant fmm its subsidiaries or joint ventures for each of the two (2) year report periods and indicate how this income is reflected in the stockholder reports. 6. Name of officers of each of the subsidiaries or joint ventures, officer's annual compensation, and portion of compensation charged to the subsidiary or joint venture. Also, indicate the position each officer holds with the applicant and the compensation received from the applicant. 18a please see attached "DEP- Item 18a - Lobbying Activities CONFIDENTIAL" 18b 1, 2, and 3 please see attached "DEP Rate Case El 18bl, 18b2, and 18b3 Investments in Subsidiaries" 18b 4 please see attached "DEP Rate Case El 18b 4 Subsidiary Financial Statements" l 8b 5 please see attached "DEP Rate Case E 1 l 8b 5 Schedule of Subsidiary Dividends and Income" l 8b 6 please see attached "DEP Rate Case E 1 l 8b 6 Investment in Subsidiaries Officers" DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For the test year ended December 31, 2016 REDACTED - 2017 North Carolina Rate Cases - DEP Form E-1 Requirements, Item 18a (Lobbying Activities) Above the line labor and expenses Below the line labor and expenses QQW Jim mm mm? DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For the test year ended December 31, 2016 Com~an:r: (%Voting Stock Owned) Items No 18b-1, 18b-2, and 18b-3 2016 Date Of Initial Investment Ca12itan Cor12oration (100%) Common Stock I Equity Contribution Undistributed Earnings Total Capitan Corp. 12/28/1931 CaroFund Inc. (100%) Common Stock I Equity Contribution Undistributed Earnings Total CaroFund, Inc. 8/15/1995 CaroHome LLC (99%) Common Stock I Equity Contribution Undistributed Earnings Total CaroHome, LLC 4/21/1995 Powerhouse Sguare LLC (99.9%) Common Stock I Equity Contribution Undistributed Earnings Total Powerhouse Square, LLC 1/16/1998 Investment At Beg Of Year (Jan 2016) Subsidiary Net Income (Loss) Investment At End Of Year (Dec 2016) Investment 11,187 (7 890) 3,297 0 (109) 0 0 11,187 (7 998) 3,189 1,678,508 (735 432) 943,076 0 (12,999) 0 0 1,678,508 (748 432) 930,076 70,986,924 (54 626 818) 16,360, 106 0 204,800 149,673 0 71, 136,597 (54 422 039) 16,714,558 3,054,401 (2 791 993) 262,408 0 258,972 0 0 3,054,401 (2 533 021) 521,380 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For the test year ended December 31, 2016 Com~an:r: (%Voting Stock Owned) Items No 18b-1, 18b-2, and 18b-3 2015 Date Of Initial Investment Ca12itan Cor12oration (100%) Common Stock I Equity Contribution Undistributed Earnings Total Capitan Corp. 12/28/1931 CaroFund Inc. (100%) Common Stock I Equity Contribution Undistributed Earnings Total CaroFund, Inc. 8/15/1995 CaroHome LLC (99%) Common Stock I Equity Contribution Undistributed Earnings Total CaroHome, LLC 4/21/1995 Powerhouse Sguare LLC (99.9%) Common Stock I Equity Contribution Undistributed Earnings Total Powerhouse Square, LLC 1/16/1998 Investment At Beg Of Year (Jan 2015) 11,187 (7 890) 3,297 1,678,508 (724 763) 953,745 Subsidiary Net Income (Loss) 0 0 0 (10,669) Investment At End Of Year (Dec 2015) Investment 0 0 11,187 (7 890) 3,297 0 0 1,678,508 (735 432) 943,076 70,908,869 (55 012 749) 15,896, 120 0 385,931 78,055 0 70,986,924 (54 626 818) 16,360,106 3,054,401 (2 971 368) 83,033 0 179,376 0 0 3,054,401 (2 791 993) 262,408 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For The Test Year Ended December 31, 2016 Item No. 18b 4 2016 Balance Sheets Capitan Cor~oration Assets Current Assets Cash & Cash Equivalents Accounts Receivable Restricted Receivables of VI Es Receivables from Affiliated Companies Interest Receivable Allowance For Doubtful Accounts Notes Receivable from Affiliated Companies Prepaid Expenses Other Current Assets Total Current Assets Other Assets Property, Plant & Equipment Accumulated Depreciation Investment In Subsidiaries I Affiliates Notes Receivable Deferred Tax Assets Amortizable Leaseholds Other Assets Total Other Assets Total Assets Liabilities & Equity Current Liabilities Accounts Payable To Assoc Companies Other Accounts Payable Deferred Revenue Security Deposits I Tenants Interest Payable Notes Payable to Affiliated Companies Mortgage Payable Accrued Income Taxes Other Current Liabilities Total Current Liabilities Other Liabilities Notes Payable Security Deposits I Tenants Current Deferred Taxes Long Term Deferred Tax Other Liabilities Total Other Liabilities Carofund, Inc. 22,730 1,871,500 (132) (132) 460,756 416,108 (2,287,608) 540 484,026 CaroHome, LLC 1,116,417 896,538 78,200 1,291,267 Powerhouse Sguare, LLC 521,280 (896,538) 70,000 2,607,421 5, 163,305 521,280 59,859 17,976,953 (6,355, 195) 96,794 3,263 59,859 11,718,552 0 3,131 543,885 16,881,857 521,280 3,263 200 70,000 (58) (58) (72) 69,928 107,438 107,438 200 (456, 119) 0 (456, 119) (58) (386, 191) Equity Common Stock Issued Additional Paid In Capital Unappropriated Retained Earnings Total Equity 24,000 (15,372) (5,439) 3,189 849,929 795,759 (715,612) 930,076 71, 136,597 (54,362, 179) 16,774,418 0 521,380 521,380 Total Liabilites & Equity 3,131 543,885 16,881,857 521,580 Total Liabilities 0 107,439 200 Item No. 18b 4 2016 Income Statements DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For The Test Year Ended December 31, 2016 Capitan Cor~oration Operating Revenues Rental Income Other Revenue Total Revenues Carofund, Inc. CaroHome, LLC Powerhouse Sguare, LLC 0 0 0 0 0 0 0 1,847,269 1,847,269 2,700 0 2,700 Less: Operating Expenses Administrative Expenses Property Related Expenses Parking Deck Expenses Other Expenses Taxes I Fees Other Than Income Taxes Total Operating Expenses 0 0 0 0 167 167 3,980 0 0 0 4,222 8,202 1,012,591 0 0 0 {765) 1,011,826 9,747 0 0 0 0 9,747 Net Operating Income (Expense) {167) (8,202) 835,443 (7,047) Plus: Other Income Financing, Interest & Dividends Equity In Subs I Affiliates Miscellaneous Income Gain Income Total Other Income 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 266,019 266,019 Less: Other Expenses Amortization Expenses Interest Expenses Depreciation Expenses Total Other Expenses 0 0 0 0 0 0 0 0 0 149,673 478,922 628,595 0 0 0 0 {167) (8,202) 206,848 258,972 0 0 Income Before Interest & Income Taxes Less: Membership Interest Less: Income Taxes Current Income Taxes Deferred Income Taxes Total Income Taxes Net Income (Loss) 0 2,068 58 0 58 50,232 {57,098) (6,866) 0 0 0 0 0 0 {109) {12,999) 206,848 258,972 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For The Twelve Months Ended December 31, 2015 Item No. 18b 4 2015 Balance Sheets Capitan Cor~oration Assets Current Assets Cash & Cash Equivalents Accounts Receivable Restricted Receivables of VI Es Receivables from Affiliated Companies Interest Receivable Allowance For Doubtful Accounts Notes Receivable from Affiliated Companies Prepaid Expenses Other Current Assets Total Current Assets Other Assets Property, Plant & Equipment Accumulated Depreciation Investment In Subsidiaries I Affiliates Notes Receivable Deferred Tax Assets Amortizable Leaseholds Other Assets Total Other Assets Total Assets Liabilities & Equity Current Liabilities Accounts Payable To Assoc Companies Other Accounts Payable Deferred Revenue Security Deposits I Tenants Interest Payable Notes Payable to Affiliated Companies Mortgage Payable Accrued Income Taxes Other Current Liabilities Total Current Liabilities Carofund, Inc. 261 (227) 26,709 1,871,500 271, 126 416,108 (2,287,608) CaroHome, LLC 1, 123,281 896,538 104,415 1,308,998 Powerhouse Sguare, LLC 85,329 76,546 (896,538) 70,000 15,000 34 144,233 442,068 1,754,617 4,361,311 57,791 17,938,907 (5,876,273) 96,794 3,263 176,875 83,032 3,335 3,263 57,791 12, 159,428 86,367 3,297 499,859 16,520,739 263,242 762 72 70,000 0 70,000 102,841 102,841 834 Other Liabilities Notes Payable Security Deposits I Tenants Current Deferred Taxes Long Term Deferred Tax Other Liabilities Total Other Liabilities 0 (513,217) Total Liabilities 0 (443,217} 102,842 834 Equity Common Stock Issued Additional Paid In Capital Unappropriated Retained Earnings Total Equity 24,000 (15,372) (5,331} 3,297 849,929 795,759 (702,612} 943,076 70,986,924 (54,569,027} 16,417,897 262,408 262,408 Total Liabilites & Equity 3,297 499,859 16,520,739 263,242 (513,217) 0 Item No. 18b 4 2015 Income Statements DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For The Twelve Months Ended December 31, 2015 Capitan Corporation Carofund, Inc. CaroHome, LLC Powerhouse Square, LLC Operating Revenues Rental Income Other Revenue Total Revenues 0 0 0 0 0 0 0 1,771,615 1,771,615 5,400 7,038 12,438 Less: Operating Expenses Administrative Expenses Property Related Expenses Parking Deck Expenses Other Expenses Taxes I Fees Other Than Income Taxes Total Operating Expenses 0 0 0 0 0 0 3,977 0 0 0 2,540 6,517 1, 100,706 0 0 0 35 1,100,741 (244,297) 0 0 0 13,271 (231,026) Net Operating Income (Expense) 0 (6,517) 670,874 243,464 Plus: Other Income Financing, Interest & Dividends Equity In Subs I Affiliates Miscellaneous Income Gain Income Total Other Income 0 0 0 0 0 0 0 36 0 36 0 0 0 238,459 238,459 0 0 33 (64,121) (64,088) Less: Other Expenses Amortization Expenses Interest Expenses Depreciation Expenses Total Other Expenses 0 0 0 0 0 0 0 0 0 78,055 441,449 519,504 0 0 0 0 Income Before Interest & Income Taxes 0 (6,481) 389,829 179,376 Less: Membership Interest 0 3,898 0 0 Less: Income Taxes Current Income Taxes Deferred Income Taxes Total Income Taxes Net Income (Loss) 146 (146) 0 112,714 (120,800) (8,086) 0 0 0 0 0 0 0 (10,669) 389,829 179,376 DUKE ENERGY PROGRESS, LLC Item No. 18b 5 Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For The Test Year Ended December 31, 2016 And The Prior Year Ended December 31, 2015 Company (% Voting Stock Owned) Capitan Corporation (100%) (109) 0 CaroFund, Inc. (100%) (12,999) (10,669) CaroHome, LLC (99%) 204,780 385,931 Powerhouse Square, LLC (99.9%) 258,972 179,376 DUKE ENERGY PROGRESS, LLC Docket E-2, Sub 1142 NCUC Form E-1 Data Request For the 12 Months Ending December 2015 and December 2016 The officers of the Duke Energy Progress, LLC subsidiaries listed are currently employed by Duke Energy Business Services (DEBS). Their costs, including compensation and other expenses, are billed to Duke Energy Progress, LLC affiliates under the 2016 Cost Allocation Manual which has been filed with the North Carolina Utilities Commission. The subsidiaries listed do not receive billings for these officers as their work for the subsidiaries is not significant. Duke Energy Progress, LLC also has majority interest in Powerhouse Square, LLC but no Duke Energy Progress, LLC employees are officers in this interest. Capitan Corporation 2015 Officer Butler, Keith G. Christian, Jr., George W. De May, Stephen G. Duffy, Kris C. Earley, Robert J. Fountain, David B. Mack, Karol P. Savoy, Brian D. Wright, Nancy M. Wyckoff, Sandra S. Position Vice President, Tax President Treasurer Assistant Treasurer Vice President Assistant Secretary Secretary Controller Assistant Secretary Assistant Treasurer 2016 Officer Christian, Jr., George W. Cox, E. Christopher Currens, Jr., William E. De May, Stephen G. De May, Stephen G. Duffy, Kris C. Earley, Robert J. Mack, Karol P. Monroe, Ill, T. Cooper Sullivan, Ill, John L. Wright, Nancy M. Position President Assistant Secretary Controller Senior Vice President, Tax Treasurer Assistant Treasurer Vice President Secretary Vice President, Tax Assistant Treasurer Assistant Secretary Item No. 18b 6 DUKE ENERGY PROGRESS, LLC Docket E-2, Sub 1142 NCUC Form E-1 Data Request For the 12 Months Ending December 2015 and December 2016 The officers of the Duke Energy Progress, LLC subsidiaries listed are currently employed by Duke Energy Business Services (DEBS). Their costs, including compensation and other expenses, are billed to Duke Energy Progress, LLC affiliates under the 2016 Cost Allocation Manual which has been filed with the North Carolina Utilities Commission. The subsidiaries listed do not receive billings for these officers as their work for the subsidiaries is not significant. Duke Energy Progress, LLC also has majority interest in Powerhouse Square, LLC but no Duke Energy Progress, LLC employees are officers in this interest. Carofund. Inc. 2015 Officer Butler, Keith G. Christian, Jr., George W. De May, Stephen G. Duffy, Kris C. Earley, Robert J. Fountain, David B. Mack, Karol P. Savoy, Brian D. Wright, Nancy M. Wyckoff, Sandra S. Position Vice President, Tax President Treasurer Assistant Treasurer Vice President Assistant Secretary Secretary Controller Assistant Secretary Assistant Treasurer 2016 Officer Christian, Jr., George W. Cox, E. Christopher Currens, Jr., William E. De May, Stephen G. De May, Stephen G. Duffy, Kris C. Earley, Robert J. Mack, Karol P. Monroe, Ill, T. Cooper Sullivan, Ill, John L. Wright, Nancy M. Position President Assistant Secretary Controller Senior Vice President, Tax Treasurer Assistant Treasurer Vice President Secretary Vice President, Tax Assistant Treasurer Assistant Secretary Item No. 18b 6 DUKE ENERGY PROGRESS, LLC Docket E-2, Sub 1142 NCUC Form E-1 Data Request For the 12 Months Ending December 2015 and December 2016 The officers of the Duke Energy Progress, LLC subsidiaries listed are currently employed by Duke Energy Business Services (DEBS). Their costs, including compensation and other expenses, are billed to Duke Energy Progress, LLC affiliates under the 2016 Cost Allocation Manual which has been filed with the North Carolina Utilities Commission. The subsidiaries listed do not receive billings for these officers as their work for the subsidiaries is not significant. Duke Energy Progress, LLC also has majority interest in Powerhouse Square, LLC but no Duke Energy Progress, LLC employees are officers in this interest. CaroHome, LLC 2015 Officer Butler, Keith G. Christian, Jr., George W. De May, Stephen G. Duffy, Kris C. Earley, Robert J. Fountain, David B. Mack, Karol P. Savoy, Brian D. Wright, Nancy M. Wyckoff, Sandra S. Position Vice President, Tax President Treasurer Assistant Treasurer Vice President Assistant Secretary Secretary Controller Assistant Secretary Assistant Treasurer 2016 Officer Christian, Jr., George W. Cox, E. Christopher Currens, Jr., William E. De May, Stephen G. De May, Stephen G. Duffy, Kris C. Earley, Robert J. Mack, Karol P. Monroe, Ill, T. Cooper Sullivan, Ill, John L. Wright, Nancy M. Position President Assistant Secretary Controller Senior Vice President, Tax Treasurer Assistant Treasurer Vice President Secretary Vice President, Tax Assistant Treasurer Assistant Secretary Item No. 18b 6 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For the test year ended December 31, 2016 19. None Item No.19 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 NCUC Form E-1 Data Request For the test year ended December 31, 2016 20. Item No. 20 Provide the following information with regard to uncollectible accounts for the test year and the five preceding calendar years (taxable year acceptable) for electric operations only: a. Reserve account balance at the beginning of year. b. Charges to reserve account (accounts charged oft) c. Credits to reserve account d. Current year provision e. Reserve account balance at the end of the year f. Percent of provision to total revenue g. An explanation of the method used to calculate the annual uncollectible prov1s10n. Please see attached spreadsheet DEP Rate Case E-1 #20 FINAL Duke Energy Progress, LLC Docket No. E-2, Sub 1142 For The Calendar Years 2011 Through 2015 And The Test Year Ended December 31, 2016 Analysis Of Reserve For Uncollectible Customer Accounts 2011 a) Reserve account balance - Beginning Of The Year b) Charges to reserve account c) Credits to reserve account d) Current year provision e) Reserve account balance - End Of The Year $ Total Opearting Revenue $ 3, 785, 128,632 f) Percent of provision to Total Operating Revenue $ 6,614,379 Item #20 2012 $ 6,282,981 2013 $ 5,931,207 (15,289,986) (9,859,301) (11,987,058) 4,647,679 3,338,353 10.310.909 6.169.174 6,282,981 0.1660% $ 5,931,207 $ 3,717,903,333 0.1595% $ 2014 $ 6,770,867 Test Year 2015 $ 8,479,832 $ 6,099,951 (297,388) (2,908,553) 3,149,299 1,487, 114 (593,998) 29,703 9.677.419 519.239 1.122.670 693,744 6,770,867 $ 3,821,558,092 0.1772% $ 8,479,832 $ 3,913,817,512 0.2167% g) The Calculated NR reserve is based on the projected upcoming 4 months of bad dept write-offs and the historic previous 6 months of write-offs. The projected 4 months along with the current month write-offs as a percentage of current month outstanding NR is applied to the average historic 6 previous months oustanding NR to establish the estimated reserve. This amount is rounded up to the next $MM. The reserve is adjusted to the highest estimated reserve over the previous 12 months. $ (855,134) 6,099,951 $ 5,968,264 $ 3,968,797,670 $ 3,878, 795,275 0.1537% 0.1539% BEFORE THE NORTH CAROLINA UTILITIES COMMISSION DOCKET NO. E-2, SUB 1142 In the Matter of Application of Duke Energy Progress, LLC, for Adjustment of Rates and Charges Applicable to Electric Utility Service in North Carolina ) ) ) ) ) TESTIMONY OF DARLENE P. PEEDIN PUBLIC STAFF – NORTH CAROLINA UTILITIES COMMISSION TESTIMONY OF DARLENE P. PEEDIN PUBLIC STAFF – NORTH CAROLINA UTILITIES COMMISSION DOCKET NO. E-2, SUB 1142 Page 1 BEFORE THE NORTH CAROLINA UTILITIES COMMISSION DOCKET NO. E-2, SUB 1142 Testimony of Darlene P. Peedin On Behalf of the Public Staff North Carolina Utilities Commission October 20, 2017 1 Q. 2 3 PLEASE STATE YOUR NAME, BUSINESS ADDRESS, AND PRESENT POSITION. A. My name is Darlene P. Peedin. My business address is 430 North 4 Salisbury Street, Dobbs Building, Raleigh, North Carolina. I am an 5 Accounting Manager-Electric Section with the Accounting Division of 6 the Public Staff – North Carolina Utilities Commission. 7 Q. BRIEFLY STATE YOUR QUALIFICATIONS AND DUTIES. 8 A. My qualifications and duties are included in Appendix A. 9 Q. WHAT IS THE PURPOSE OF YOUR TESTIMONY? 10 A. The purpose of my testimony is to present the accounting and 11 ratemaking adjustments I am recommending, as well as those 12 recommended by other Public Staff witnesses, as a result of the TESTIMONY OF DARLENE P. PEEDIN PUBLIC STAFF – NORTH CAROLINA UTILITIES COMMISSION DOCKET NO. E-2, SUB 1142 Page 2 1 Public Staff’s investigation of the revenue, expenses, and rate base 2 presented by Duke Energy Progress, LLC (DEP or the Company) in 3 support of its June 1, 2017, request for $477,495,000 in additional 4 North Carolina Retail revenue. On September 15, 2017, DEP filed 5 supplemental testimony and exhibits that detailed a $57,958,000 6 reduction in its request for additional North Carolina retail revenue. 7 The impact of this supplemental filing reduced the total Company 8 proposed increase to $419,537,000. 9 Q. 10 11 WHAT REVENUE INCREASE IS THE PUBLIC STAFF RECOMMENDING? A. Based on the level of rate base, revenue, and expenses annualized 12 at December 31, 2016, with certain updates, the Public Staff is 13 recommending an increase in annual operating revenue of 14 $2,783,000. 15 Q. 16 17 MS. PEEDIN, PLEASE DESCRIBE THE SCOPE OF YOUR INVESTIGATION INTO THE COMPANY’S FILING. A. My investigation included a review of the application, testimony, 18 exhibits, and other data filed by the Company, an examination of the 19 books and records for the test year, and a review of the Company’s 20 accounting, end-of-period, and after-period adjustments to test year 21 revenue, expenses, and rate base. 22 conducted extensive discovery in this matter, including the review of The Public Staff has also TESTIMONY OF DARLENE P. PEEDIN PUBLIC STAFF – NORTH CAROLINA UTILITIES COMMISSION DOCKET NO. E-2, SUB 1142 Page 3 1 numerous data responses provided by the Company in response to 2 data requests, participation in conference calls with the Company, 3 on-site visits to review documents and interview personnel, and tours 4 of the Company’s plants. 5 Q. 6 7 PLEASE BRIEFLY DESCRIBE THE PUBLIC STAFF’S PRESENTATION OF THE ISSUES IN THIS CASE. A. Each Public Staff witness will present testimony and exhibits 8 supporting his or her position and recommend any appropriate 9 adjustments to the Company’s proposed rate base and cost of 10 service. My exhibits reflect and summarize these adjustments, as 11 well as the adjustments I recommend. 12 Q. 13 14 PLEASE GIVE A MORE DETAILED DESCRIPTION OF THE ORGANIZATION OF YOUR EXHIBITS. A. Schedule 1 of Peedin Exhibit 1 presents a reconciliation of the 15 difference between the Company’s requested 16 $477,495,000 and the Public Staff’s recommended increase of 17 $2,783,000. 18 Schedule 2 presents the Public Staff’s adjusted North Carolina retail 19 original cost rate base. The adjustments made to the Company’s 20 proposed level of rate base are summarized on Schedule 2-1 and 21 are detailed on backup schedules. TESTIMONY OF DARLENE P. PEEDIN PUBLIC STAFF – NORTH CAROLINA UTILITIES COMMISSION DOCKET NO. E-2, SUB 1142 increase of Page 4 1 Schedule 3 presents a statement of net operating income for return 2 under present rates as adjusted by the Public Staff. Schedule 3-1 3 summarizes the Public Staff’s adjustments, which are detailed on 4 backup schedules. 5 Schedule 4 presents the calculation of required net operating 6 income, based on the rate base and cost of capital recommended by 7 the Public Staff. 8 Schedule 5 presents the calculation of the required increase in 9 operating revenue necessary to achieve the required net operating 10 income. 11 recommended increase shown at the bottom of Schedule 1. 12 . 13 14 Peedin Exhibit 2 sets forth the calculation of an annual EDIT Rider to be in effect for two years Q. 15 16 This revenue increase is equal to the Public Staff’s MS. PEEDIN, WHAT ADJUSTMENTS TO THE COMPANY’S COST OF SERVICE DO YOU RECOMMEND? A. I am recommending adjustments in the following areas: 17 1) Updated Net Plant and Depreciation Expense 18 2) Update for New Depreciation Rates 19 20 3) Updated Revenues and Non-Fuel Variable Operation and Maintenance (O&M) Expenses 21 4) Mayo Zero Liquid Discharge (ZLD) 22 5) Sutton Blackstart Combustion Turbine (CT) Project 23 6) Cash Working Capital Under Present Rates TESTIMONY OF DARLENE P. PEEDIN PUBLIC STAFF – NORTH CAROLINA UTILITIES COMMISSION DOCKET NO. E-2, SUB 1142 Page 5 1 7) Coal Inventory 2 8) Effect of Inflation on Non-Fuel O&M Expenses 3 9) Harris Units 2 and 3 COLA Amortization 4 5 10) 11) End of Life Reserve for Nuclear Materials and Supplies Customer Growth 6 12) Hurricane Matthew Revenue 7 13) Executive Compensation and Benefits 8 14) Board of Directors Expenses 9 15) Incentive Plans 10 16) Aviation Expenses 11 17) Outside Services 12 13 18) Removal of Costs to Achieve the Duke-Piedmont Merger 14 19) Allocations from DEBS 15 20) Lobbying Expenses 16 21) Distribution Vegetation Management 17 22) Customer Connect 18 23) Storm Expenses 19 24) Sponsorships and Donations 20 25) Interest Synchronization 21 26) Cash Working Capital Effect of Increase 22 27) Excess Deferred Income Taxes (EDIT) 23 Q. 24 25 WHAT ADJUSTMENTS RECOMMENDED BY OTHER PUBLIC STAFF WITNESSES DO YOUR EXHIBITS INCORPORATE? A. My exhibits reflect the following adjustments recommended by other 26 Public Staff witnesses: 27 1) 28 The recommendations of Public Staff witness Parcell of Technical Associates, Inc. regarding the capital structure, TESTIMONY OF DARLENE P. PEEDIN PUBLIC STAFF – NORTH CAROLINA UTILITIES COMMISSION DOCKET NO. E-2, SUB 1142 Page 6 1 embedded cost of long-term debt, and return on common 2 equity. 3 2) 4 The recommendations of Public Staff witness Floyd regarding Customer Connect. 5 3) The recommendations of Public Staff witness Metz regarding 6 Coal Inventory, the Sutton Blackstart CT Project, and Nuclear 7 Materials and Supplies Inventory. 8 4) 9 The recommendations of Public Staff witness Lucas regarding the Mayo ZLD Project. 10 5) The recommendations of Public Staff witness McCullar of 11 William Dunkel and Associates regarding the Company’s 12 depreciation study. 13 6) The recommendations of Public Staff witness Williamson 14 regarding imputed revenues related to Hurricane Matthew 15 and Vegetation Management. 16 7) The recommendations of Public Staff witness Maness 17 regarding deferred and ongoing environmental costs and the 18 Company’s storm deferral request. 19 8) 20 The recommendation of Public Staff witness Saillor regarding customer growth. 21 Q. PLEASE DESCRIBE YOUR RECOMMENDED ADJUSTMENTS. 22 A. My adjustments are described below. TESTIMONY OF DARLENE P. PEEDIN PUBLIC STAFF – NORTH CAROLINA UTILITIES COMMISSION DOCKET NO. E-2, SUB 1142 Page 7 1 2 UPDATED NET PLANT AND DEPRECIATION EXPENSE Q. PLEASE EXPLAIN 3 DEPRECIATION 4 RELATED. 5 A. AND HOW PLANT, DEPRECIATION ACCUMULATED EXPENSE ARE As the Company places new plant into service, it increases its rate 6 base. Upon being placed in service, the plant begins to depreciate, 7 and depreciation expense is recorded each accounting period (and 8 recovered from ratepayers) as the plant is used in providing service. 9 The cumulative amount of depreciation expense is reflected on the 10 balance sheet as accumulated depreciation, which is deducted from 11 the original cost of the plant to determine net plant. Net plant (i.e., 12 total plant, net of accumulated depreciation) is used to calculate the 13 rate base on which the Company is allowed to earn a return, while 14 depreciation expense is an input in the calculation of net operating 15 income. 16 Q. 17 18 PLEASE EXPLAIN THE COMPANY’S COMPUTATION OF NET PLANT. A. The Company began its calculation of net plant with the plant and 19 accumulated depreciation amounts recorded at the end of December 20 31, 2016 (the test year in this case), and then updated for actual plant 21 additions through August 31, 2017, including the annual level of 22 depreciation on the plant additions as well as the matching amount TESTIMONY OF DARLENE P. PEEDIN PUBLIC STAFF – NORTH CAROLINA UTILITIES COMMISSION DOCKET NO. E-2, SUB 1142 Page 8 1 of accumulated depreciation. The Company excluded additions 2 related to NCEMPA [which are recoverable through the Joint Agency 3 Asset Rider (JAAR)], and customer growth related additions. 4 Q. PLEASE EXPLAIN HOW YOU HAVE COMPUTED NET PLANT. 5 A. My calculation begins with plant, accumulated depreciation, and net 6 plant with the Company’s actual per books plant in service and 7 accumulated depreciation amounts as of August 31, 2017, which 8 include rate base customer growth-related actual plant additions. 9 Q. 10 11 PLEASE EXPLAIN THE DIFFERENCE BETWEEN YOUR AMOUNT OF NET PLANT AND THE COMPANY’S AMOUNT. A. I have reflected $158 million less net plant than the Company, 12 primarily because I have updated net plant for known and actual 13 changes to depreciation expense and non-generation plant 14 retirements that have been recorded between the end of the test year 15 (December 31, 2016) and the update period ending August 31, 2017. 16 Because I have updated plant and accumulated depreciation to 17 reflect the Company’s actual August 31, 2017, per books amounts, I 18 have also considered the effect of normal retirements on the 19 computation of depreciation expense. 20 Uniform System of Accounts, normal retirements of plant reduce 21 plant and accumulated depreciation by offsetting amounts, and thus 22 do not affect the amount of net plant reflected as a component of rate Pursuant to the FERC TESTIMONY OF DARLENE P. PEEDIN PUBLIC STAFF – NORTH CAROLINA UTILITIES COMMISSION DOCKET NO. E-2, SUB 1142 Page 9 1 base. If retirements are not properly reflected in the amount of plant 2 used to compute depreciation expense, depreciation expense will be 3 overstated. Because the Company has not properly reflected the 4 effect of normal retirements, its computation of depreciation expense 5 includes depreciation expense on plant that was retired as of August 6 31, 2017 and consequently is overstated. 7 Q. BY MAKING THIS ADJUSTMENT TO UPDATE ACCUMULATED 8 DEPRECIATION FOR DEPRECIATION EXPENSE THAT HAS 9 BEEN RECOVERED FROM RATEPAYERS SINCE THE END OF 10 THE TEST PERIOD, IS THE PUBLIC STAFF CHANGING THE 11 TEST PERIOD? 12 A. No. Consistent with G.S. 62-133, we have used the historic test year 13 to determine the cost of service for DEP. When justified, we have 14 updated expenses, revenues, and investment to reflect the 15 Company’s most recent ongoing levels for these items, based on 16 actual known and measurable changes occurring after the test year, 17 just as DEP did in its initial and supplemental testimony. The costs 18 of the plant additions that the Company included are known and 19 measurable, as are the plant retirements that have occurred and the 20 depreciation that has been recovered from ratepayers since the end 21 of the test period. 22 changes in accumulated depreciation, as the Company has done, Including only plant additions and omitting TESTIMONY OF DARLENE P. PEEDIN PUBLIC STAFF – NORTH CAROLINA UTILITIES COMMISSION DOCKET NO. E-2, SUB 1142 Page 10 1 fails to properly take into account the relationships among plant, 2 depreciation expense and accumulated depreciation, as well as the 3 relationship between net plant and other cost of service items. The 4 Public Staff updated plant and accumulated depreciation to reflect 5 actual per books amounts as of August 31, 2017, because that date 6 represents the same point in time that the Public Staff used to update 7 customer growth. 8 While the Public Staff’s adjustment to accumulated depreciation is 9 beyond the test year, it recognizes and maintains its relationship with 10 plant and other cost of service items and is permitted by G.S. 62- 11 133(c) and (d). G.S. 62-133(c) provides that the Commission shall 12 consider evidence of changes in costs, revenues, or rate base after 13 the test year, while G.S. 62-133(d) requires the Commission to 14 consider all material facts to allow it to set just and reasonable rates. 15 The changes in plant, depreciation expense, and accumulated 16 depreciation since the test year are exactly the type of changes and 17 material facts that the Commission must consider pursuant to G.S. 18 62-133(c) and (d). 19 The adjustment I recommend is consistent with the Commission’s 20 past treatment of comprehensive plant updates beyond the end of 21 the test year. Adjustments like this have been consistently approved 22 by the Commission in rate cases for natural gas utilities since the TESTIMONY OF DARLENE P. PEEDIN PUBLIC STAFF – NORTH CAROLINA UTILITIES COMMISSION DOCKET NO. E-2, SUB 1142 Page 11 1 1990’s and were used by Dominion Energy North Carolina in its most 2 recent general rate cases. 1 3 4 UPDATE FOR NEW DEPRECIATION RATES Q. 5 6 PLEASE DESCRIBE YOUR ADJUSTMENT TO DEPRECIATION EXPENSE TO REFLECT NEW DEPRECIATION RATES. A. Based on the recommendations of Public Staff witness McCullar, I 7 have made an adjustment to adjust depreciation expense to reflect 8 her recommended depreciation rates. 9 10 UPDATED REVENUES AND NON-FUEL VARIABLE O&M EXPENSES Q. 11 12 PLEASE EXPLAIN YOUR ADJUSTMENT TO UPDATE REVENUES AND VARIABLE NON-FUEL O&M EXPENSES. A. As part of my update to plant and related items, I have updated 13 revenues to reflect the effect of customer growth as of August 31, 14 2017, based on the recommendation of Public Staff witness Saillor. 15 I have made a corresponding adjustment for the increase in 16 customer-related O&M expenses that result from the additional 17 customers. I have also made corresponding adjustments to fuel and 1 Per Commission Orders in Public Service Company of North Carolina, Inc. Docket No. G-5, Sub 565; Piedmont Natural Gas Company, Inc. Docket No. G-9, Sub 631; Dominion North Carolina Power Docket Nos. E-22, Sub 479 and Sub 532. TESTIMONY OF DARLENE P. PEEDIN PUBLIC STAFF – NORTH CAROLINA UTILITIES COMMISSION DOCKET NO. E-2, SUB 1142 Page 12 1 energy-related non-fuel O&M expenses for the additional kilowatt 2 hours resulting from increased sales. 3 MAYO ZLD 4 Q. 5 6 PLEASE EXPLAIN YOUR ADJUSTMENT TO REMOVE CERTAIN COSTS RELATED TO THE MAYO ZLD PROJECT. A. I have incorporated an adjustment to include the recommendation of 7 Public Staff witness Lucas to disallow certain costs related to the 8 Mayo ZLD Project. I have also made corresponding adjustments to 9 depreciation expense and accumulated depreciation to reflect his 10 recommendation. 11 12 SUTTON BLACKSTART CT PROJECT Q. PLEASE EXPLAIN YOUR ADJUSTMENT TO REMOVE CERTAIN 13 COSTS 14 PROJECT. 15 A. RELATED TO THE SUTTON BLACKSTART CT I have incorporated an adjustment to include the recommendation of 16 Public Staff witness Metz to remove costs related to the Sutton 17 Blackstart CT Project debris contamination. 18 corresponding 19 accumulated depreciation to reflect his recommendation. adjustments to I have also made depreciation expense and 20 TESTIMONY OF DARLENE P. PEEDIN PUBLIC STAFF – NORTH CAROLINA UTILITIES COMMISSION DOCKET NO. E-2, SUB 1142 Page 13 1 2 CASH WORKING CAPITAL UNDER PRESENT RATES Q. 3 4 PLEASE EXPLAIN THE ADJUSTMENT TO CASH WORKING CAPITAL UNDER PRESENT RATES. A. The Company computed cash working capital using the lead-lag 5 study method and then adjusted it to fully reflect all of the Company’s 6 proposed adjustments, before the amount of the proposed rate 7 increase. 8 present rates to reflect all of the Public Staff’s adjustments, in 9 accordance with the Commission’s Order in Docket No. M-100, Sub 10 137. This cash working capital adjustment is reflected on Schedule 11 2-1 and incorporates the effect of the Public Staff adjustments, 12 before the rate increase, on lead-lag study cash working capital. 13 I have likewise adjusted cash working capital under COAL INVENTORY 14 Q. PLEASE EXPLAIN THE ADJUSTMENT TO COAL INVENTORY. 15 A. As discussed by Public Staff witness Metz, coal inventory should be 16 reduced from the 40-day target at 100% full load burn, used by the 17 Company in its Application, to a target level of 30 days at 70% full 18 load burn. TESTIMONY OF DARLENE P. PEEDIN PUBLIC STAFF – NORTH CAROLINA UTILITIES COMMISSION DOCKET NO. E-2, SUB 1142 Page 14 1 2 EFFECT OF INFLATION ON NON-FUEL O&M EXPENSES Q. 3 4 WHAT ADJUSTMENT HAVE YOU MADE TO THE COMPANY’S INFLATION ADJUSTMENT? A. The Company made an adjustment to annual non-labor, non-fuel 5 O&M costs, to reflect the increase in costs during the test year that 6 occurred due to the effect of inflation. I have adjusted the inflation 7 factor through August 31, 2017, to coordinate with other items 8 updated through that same point in time. I have also modified the 9 Company’s inflation adjustment to reflect the Public Staff’s 10 adjustment to include variable O&M expenses for changes in 11 customer growth and the removal of aviation expenses, Board of 12 Directors (BOD) expenses, outside services expenses, and 13 sponsorships and donations. 14 15 HARRIS UNITS 2 AND 3 COLA AMORTIZATION Q. PLEASE EXPLAIN THE PUBLIC STAFF’S ADJUSTMENT TO THE 16 COMPANY’S AMORTIZATION OF CERTAIN COSTS INCURRED 17 FOR THE DEVELOPMENT OF UNITS 2 AND 3 OF THE HARRIS 18 NUCLEAR STATION. 19 20 A. In Docket No. E-2, Sub 1035, the Commission approved the Company’s petition to defer certain capital costs incurred for the TESTIMONY OF DARLENE P. PEEDIN PUBLIC STAFF – NORTH CAROLINA UTILITIES COMMISSION DOCKET NO. E-2, SUB 1142 Page 15 1 development of Units 2 and 3 of the Harris Nuclear Station. The 2 Commission allowed the amortization of certain of these costs, on 3 the condition that the amortization period should not exceed the 4 period during which the costs were incurred or five years, whichever 5 is greater. The Company incurred the development costs over an 6 eight year period; however, DEP used a period of five years in its 7 amortization adjustment in this case. The Public Staff has adjusted 8 the amortization period to eight years, to reflect the period over which 9 the costs were incurred. It is my understanding that the Company 10 agrees with an eight-year amortization period. 11 END OF LIFE RESERVE FOR NUCLEAR MATERIALS AND SUPPLIES 12 Q. 13 14 PLEASE EXPLAIN THE PUBLIC STAFF’S ADJUSTMENT FOR THE END OF LIFE RESERVE FOR MATERIALS AND SUPPLIES. A. Based on the testimony of Public Staff witness Metz, I have made an 15 adjustment to reflect his recommendation to remove certain items 16 from inventory. TESTIMONY OF DARLENE P. PEEDIN PUBLIC STAFF – NORTH CAROLINA UTILITIES COMMISSION DOCKET NO. E-2, SUB 1142 Page 16 1 2 CUSTOMER GROWTH Q. 3 4 GROWTH. A. 5 HURRICANE MATTHEW REVENUE Q. 8 9 I have adjusted customer growth to reflect the recommendations of Public Staff witness Saillor. 6 7 PLEASE EXPLAIN YOUR ADJUSTMENT FOR CUSTOMER WHAT ADJUSTMENT DOES THE PUBLIC STAFF RECOMMEND RELATED TO HURRICANE MATTHEW REVENUE? A. As discussed by Public Staff witness Williamson, the Company made 10 an adjustment to increase revenues to reflect the estimated net lost 11 revenues from residential and commercial customers as a result of 12 Hurricane Matthew. 13 affected by the hurricane, the Public Staff has modified this 14 adjustment to include the net lost revenues from the industrial class 15 of customers. 16 Williamson’s recommendation. 17 18 19 Because industrial customers were also I have included an adjustment to reflect witness EXECUTIVE COMPENSATION AND BENEFITS Q. WHAT ADJUSTMENT HAVE YOU MADE TO EXECUTIVE COMPENSATION AND BENEFITS? TESTIMONY OF DARLENE P. PEEDIN PUBLIC STAFF – NORTH CAROLINA UTILITIES COMMISSION DOCKET NO. E-2, SUB 1142 Page 17 1 A. The Company made an adjustment to remove 50 percent of the 2 compensation of the four Duke Energy executives with the highest 3 level of compensation allocated to DEP in the test period. 4 adjustment includes the removal of 50 percent of the compensation 5 of an additional executive. 6 compensation of the top five Duke Energy executives, as opposed 7 to the top four executives as the Company has done, is to reflect the 8 fact that the additional executive’s duties and compensation 9 encompass a substantial amount of activities that are closely linked 10 to shareholder interests, just as in the case of the other four 11 executives. 12 I have also made an adjustment to remove 50 percent of the benefits 13 associated with these top five Duke Energy executives. 14 adjustment is consistent with the positions taken by the Public Staff 15 and approved by the Commission in past general rate cases 16 involving investor-owned electric utilities serving North Carolina retail 17 customers. The Public Staff believes that it would be inconsistent to 18 remove the compensation of these five executives without also 19 removing the benefits related to that compensation. My The premise of including the TESTIMONY OF DARLENE P. PEEDIN PUBLIC STAFF – NORTH CAROLINA UTILITIES COMMISSION DOCKET NO. E-2, SUB 1142 This Page 18 1 Q. IS YOUR RECOMMENDATION BASED ON THE PREMISE THAT 2 THE COMPENSATION AND BENEFITS OF THE EXECUTIVE 3 OFFICERS YOU HAVE SELECTED IS EXCESSIVE OR SHOULD 4 BE REDUCED? 5 A. No. This recommendation is based on the Public Staff’s belief that it 6 is appropriate and reasonable for the shareholders of the larger 7 electric utilities to bear some of the cost of compensating those 8 individuals who are most closely linked to furthering shareholder 9 interests, which are not always the same as those of ratepayers. 10 Officers have fiduciary duties of care and loyalty to shareholders, but 11 not to customers. Consequently, the Company’s executive officers 12 are obligated to direct their efforts not only to minimizing the cost and 13 maximizing the reliability of DEP’s service to customers, but also to 14 maximizing the Company’s earnings and the value of its shares. It 15 is reasonable to expect that management will serve the shareholders 16 as well as the ratepayers; therefore, a portion of management salary 17 and benefits should be borne by the shareholders. 18 BOARD OF DIRECTORS (BOD) EXPENSES 19 Q. PLEASE EXPLAIN YOUR ADJUSTMENT TO BOD EXPENSES. 20 A. I have made an adjustment to remove 50 percent of the expenses 21 associated with the BOD of Duke Energy Corporation that have been TESTIMONY OF DARLENE P. PEEDIN PUBLIC STAFF – NORTH CAROLINA UTILITIES COMMISSION DOCKET NO. E-2, SUB 1142 Page 19 1 allocated to DEP. The expenses allocated to DEP encompass the 2 BOD’s 3 expenses. The premise of this adjustment is closely linked to the 4 premise of the adjustment made by the Public Staff related to 5 executive compensation. 6 reasonable for the shareholders of the larger electric utilities to bear 7 a reasonable share of the costs of compensating those individuals 8 with a fiduciary duty is to protect the interests of shareholders, which 9 may differ from the interests of ratepayers. Further, Directors’ and 10 Officers’ liability insurance, while a necessary expense for a 11 corporation, has been utilized to defend the Board in suits brought 12 by shareholders regarding issues such as the merger with Duke 13 Energy Corporation and coal ash. It is appropriate for shareholders 14 to share the cost of the insurance with ratepayers. 15 16 insurance, and other miscellaneous We believe that it is appropriate and INCENTIVE PLANS Q. 17 18 compensation, PLEASE EXPLAIN YOUR ADJUSTMENT FOR THE COMPANY’S LONG AND SHORT TERM INCENTIVE PLANS. A. DEP offers two incentive plans to its employees: the Short-Term 19 Incentive Plan (STIP) and the Long-Term Incentive Plan (LTIP). The 20 STIP is offered to all employees, including executives. The LTIP is 21 offered to employees at the Director level and above. Approximately 22 700 employees of Duke Energy Corporation qualify for the LTIP. TESTIMONY OF DARLENE P. PEEDIN PUBLIC STAFF – NORTH CAROLINA UTILITIES COMMISSION DOCKET NO. E-2, SUB 1142 Page 20 1 The STIP consists of goals set and approved by the BOD for a one 2 year term. In 2016, the test year in this case, the goals consisted of 3 Earnings per Share (EPS), Operational Excellence, Customer 4 Satisfaction, and Safety, as well as team and individual goals. The 5 LTIP goals consist of Performance Shares, which are further 6 categorized between EPS and Total Shareholder Return (TSR), and 7 Restricted Stock Units (RSU). Both offerings are set and approved 8 by the BOD for a three-year period. 9 The Company’s payout of STIP is based on the achievement of 10 targets at minimum, target and maximum levels. During the test 11 year, the Company included an adjustment to reduce the STIP from 12 the 2016 payout level to the 2017 target level. With regard to LTIP, 13 the Company made an adjustment to remove the 2016 accruals and 14 replace them with 2017 target accruals. 15 allowable costs of STIP to exclude the incentive accruals that were 16 based on the EPS metric. I have also adjusted the allowable LTIP 17 costs to exclude the Performance Shares, which include the EPS 18 and TSR metrics. 19 related to EPS and TSR should be excluded because they provide a 20 direct benefit to shareholders rather than to ratepayers. These costs 21 should be borne by shareholders. I have adjusted the The Public Staff believes that the incentives TESTIMONY OF DARLENE P. PEEDIN PUBLIC STAFF – NORTH CAROLINA UTILITIES COMMISSION DOCKET NO. E-2, SUB 1142 Page 21 1 2 AVIATION EXPENSES Q. 3 4 WHAT ADJUSTMENT DO YOU RECOMMEND RELATED TO AVIATION EXPENSES? A. The Company made an adjustment to O&M expenses to remove an 5 amount for corporate aviation. The Public Staff made a further 6 adjustment after investigating the aviation expenses charged to DEP 7 during the test year. The aviation expenses are incurred by Duke 8 Energy Corporation, and then a portion is allocated to DEP through 9 the use of a corporate allocation factor. Based on the Public Staff’s 10 review of flight logs, the corporate aircraft are available for use by 11 Duke Energy Corporation’s Chief Executive Officer (CEO) and her 12 staff. 13 removed due to the nature of the flights involved. Some of these 14 flights appear to be unrelated to the provision of utility service; in 15 other instances, the costs of the flights have been incorrectly 16 allocated; and in other cases, the Company has not justified the costs 17 of using Company-owned aircraft rather than purchasing tickets for 18 commercial flights. I recommend that certain expenses allocated to DEP be TESTIMONY OF DARLENE P. PEEDIN PUBLIC STAFF – NORTH CAROLINA UTILITIES COMMISSION DOCKET NO. E-2, SUB 1142 Page 22 1 2 OUTSIDE SERVICES Q. 3 4 PLEASE EXPLAIN YOUR ADJUSTMENT TO OUTSIDE SERVICES. A. During 2016, the test year in this case, the Public Staff reviewed 5 costs for outside services associated with expenses that were 6 indirectly charged to DEP by Duke Energy Business Services 7 (DEBS) as well as those incurred by DEP directly. Our investigation 8 revealed charges that were related to legal services for coal ash and 9 groundwater issues related to coal ash. I have removed these 10 expenses from O&M in the test period based on the advice of 11 counsel. 12 DEP that should have been directly assigned to other jurisdictions, 13 as well as costs allocated to DEP for the Duke-Piedmont merger. 14 The costs allocated to DEP for the Duke-Piedmont merger are 15 discussed in the next section of my testimony. 16 should be charged only the reasonable costs of providing electric 17 service to North Carolina retail customers. 18 19 20 We also found certain expenses that were allocated to DEP ratepayers REMOVAL OF COSTS TO ACHIEVE DUKE-PIEDMONT MERGER Q. PLEASE EXPLAIN YOUR ADJUSTMENT TO COSTS TO ACHIEVE THE MERGER. TESTIMONY OF DARLENE P. PEEDIN PUBLIC STAFF – NORTH CAROLINA UTILITIES COMMISSION DOCKET NO. E-2, SUB 1142 Page 23 1 A. On September 29, 2016, in Docket No. E-7, Sub 1100, Docket No. 2 E-2, Sub 1095, and Docket No. G-9, Sub 682, the Commission 3 issued its Order Approving Merger Subject to Regulatory Conditions 4 and Code of Conduct (Merger Order), which approved the merger 5 between Duke Energy Corporation and Piedmont Natural Gas 6 (PNG). 7 addresses the ratemaking treatment of costs incurred to achieve the 8 merger, states (emphasis added): Ordering paragraph 7(b) of the Merger Order, which 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 DEC, DEP, and Piedmont may request recovery through depreciation or amortization, and inclusion in rate base, as appropriate and in accordance with normal ratemaking practices, their respective shares of capital costs associated with achieving merger savings [emphasis added], such as system integration costs and the adoption of best practices, including information technology, provided that such costs are incurred no later than three years from the close of the merger and result in quantifiable cost savings that offset the revenue requirement effect of including the costs in rate base. Only the net depreciated costs of such system integration projects at the time the request is made may be included, and no request for deferrals of these costs may be made. 24 On October 4, 2017, Duke Energy Corporation filed a letter indicating 25 that both it and Piedmont accepted and agreed to all the terms, 26 conditions, and provisions of the Merger Order, including the 27 Regulatory Conditions and Code of Conduct. During the test year in 28 this case, DEP has included in operating expenses approximately 29 $3.8 million on a North Carolina retail basis that it identified as 30 systems and transition costs to achieve merger savings. TESTIMONY OF DARLENE P. PEEDIN PUBLIC STAFF – NORTH CAROLINA UTILITIES COMMISSION DOCKET NO. E-2, SUB 1142 Page 24 1 DEP has not requested recovery of these costs in rate base, but 2 instead has chosen to include them in O&M expenses. Because 3 DEP did not request recovery of these costs “through depreciation or 4 amortization, and inclusion in rate base,” as ordering paragraph 7(b) 5 requires, the Company is prohibited from recovering them. 6 7 ALLOCATIONS FROM DEBS Q. 8 9 PLEASE EXPLAIN YOUR ADJUSTMENT TO ALLOCATIONS FROM DEBS. A. DEBS is the company that provides services to various affiliated 10 entities of Duke Energy Corporation. The affiliated entities have a 11 Cost Allocation Manual (CAM) that documents the guidelines and 12 procedures for allocating costs between the entities to ensure that 13 one entity does not subsidize another. 14 Energy acquired PNG, and the merger was approved by the 15 Commission on September 29, 2016. 16 updates related to other affiliated entities, has caused the DEP 17 allocation factors to decrease on a going-forward basis. As a result, 18 I have made an adjustment to reflect the fact that O&M expenses 19 allocated to DEP from DEBS will be less going forward. During the test year, Duke This change, along with TESTIMONY OF DARLENE P. PEEDIN PUBLIC STAFF – NORTH CAROLINA UTILITIES COMMISSION DOCKET NO. E-2, SUB 1142 Page 25 1 2 LOBBYING EXPENSES Q. 3 4 PLEASE EXPLAIN YOUR ADJUSMTENT TO LOBBYING EXPENSES. A. The Company made an adjustment to remove some lobbying 5 expenses from the test year. I have further adjusted O&M expenses 6 to remove additional lobbying costs. 7 should be removed, I applied the “but for” test for reporting lobbying 8 costs as used in a Formal Advisory Opinion of the State Ethics 9 Commission dated February 12, 2010. The Commission recognized 10 at pages 70-71 of its 2012 Dominion North Carolina Power order in 11 Docket No. E-22, Sub 479, that lobbying included not only 12 employees’ direct contact with legislators, but also other activities 13 preparing for or surrounding lobbying that would not have been 14 conducted but for the lobbying itself. In applying this test, I removed 15 O&M expenses associated with stakeholder engagement, state 16 government affairs, and federal affairs that were recorded above the 17 line. 18 19 20 In determining what costs DISTRIBUTION VEGETATION MANAGEMENT Q. PLEASE EXPLAIN THE PUBLIC STAFF’S ADJUSTMENT TO DISTRIBUTION VEGETATION MANAGEMENT. TESTIMONY OF DARLENE P. PEEDIN PUBLIC STAFF – NORTH CAROLINA UTILITIES COMMISSION DOCKET NO. E-2, SUB 1142 Page 26 1 A. I have made an adjustment to distribution vegetation management 2 expenses (VM) to include a reasonable level for the test period in this 3 case. Vegetation Management for distribution and transmission is 4 further discussed in the testimony of Public Staff witness Williamson. 5 This adjustment to distribution VM is calculated based on the 6 ongoing level of the annual target distribution VM miles and the test 7 year VM actual cost per mile. In 2015, Duke Energy engaged a 8 consultant to conduct a tree species frequency and regrowth study 9 for approximately 90% of its distribution VM areas in the DEP service 10 territory. As a result of this study, DEP decided to modify its target 11 cycle from 6 to 7 years for non-urban miles. Adjusting the target 12 cycle to a 7 years will reduce the amount of production dollars 13 needed by the Company to maintain its VM program. The actual cost 14 per mile used in the calculation is consistent with the cost per mile 15 experienced by DEP in prior years. The level of VM costs remaining 16 in O&M expenses is adequate funding for maintaining a prudent 17 distribution VM program. 18 19 CUSTOMER CONNECT Q. 20 21 22 PLEASE EXPLAIN YOUR ADJUSTMENT TO CUSTOMER CONNECT. A. In this case, the Company included an amount of forecasted costs that it expects to incur during the 2018-2020 time frame related to its TESTIMONY OF DARLENE P. PEEDIN PUBLIC STAFF – NORTH CAROLINA UTILITIES COMMISSION DOCKET NO. E-2, SUB 1142 Page 27 1 Customer Connect project. As stated in the Company’s testimony, 2 the Customer Connect project is currently planned to be in service in 3 2021 and will replace the Company’s current billing system. I have 4 made an adjustment to remove the forecasted amounts the 5 Company plans to spend between 2018 and the in-service date. The 6 rationale for this adjustment is that the system is in the analytics 7 stage. Specifically, the Company is in the process of gathering 8 customer data to build and develop a platform to enhance customer 9 interactions with the Company and the system has not been placed 10 in service. 11 functionality of this project for DEP is not expected until the summer 12 of 2021. Public Staff witness Floyd will provide further testimony on 13 Customer Connect. 14 15 STORM EXPENSES Q. 16 17 Based on my understanding of this project, full PLEASE EXPLAIN YOUR ADJUSTMENT TO STORM EXPENSES AND STORM DEFERRAL REQUESTED BY THE COMPANY. A. The Company made an adjustment to normalize North Carolina retail 18 O&M expenses for storm expenses. My adjustment to the 19 Company’s level of storm expenses reflects a normal level of storm 20 expenses based on the average annual storm expenses (excluding 21 base labor costs) incurred by the Company over a ten-year period, 22 adjusted for inflation. I have also reflected a ten-year average of TESTIMONY OF DARLENE P. PEEDIN PUBLIC STAFF – NORTH CAROLINA UTILITIES COMMISSION DOCKET NO. E-2, SUB 1142 Page 28 1 storm expenses to recognize the Public Staff’s position, set forth in 2 Docket No. E-2, Sub 1131, that abnormal storm expenses are those 3 outside “the usual range of volatility, or range of fluctuation, of the 4 expense.” The level of abnormal storm expenses has been updated 5 in this case for actual changes to the expense amount. Public Staff 6 witness Maness will be providing testimony regarding the Company’s 7 deferral request. 8 9 SPONSORSHIPS AND DONATIONS Q. 10 11 WHAT ADJUSTMENT HAVE YOU MADE FOR SPONSORSHIPS AND DONATIONS? A. I have adjusted O&M expenses to remove amounts charged to O&M 12 expense for sponsorships and charitable donations. Specifically, I 13 have excluded from expenses amounts paid to the U.S. Chamber of 14 Commerce and other chambers of commerce. These expenses 15 should be disallowed because they do not represent actual costs of 16 providing electric service to customers. 17 18 19 INTEREST SYNCHRONIZATION ADJUSTMENT Q. PLEASE EXPLAIN YOUR INTEREST SYNCHRONIZATION ADJUSTMENT. TESTIMONY OF DARLENE P. PEEDIN PUBLIC STAFF – NORTH CAROLINA UTILITIES COMMISSION DOCKET NO. E-2, SUB 1142 Page 29 1 A. The Company adjusted income tax expense to reflect interest 2 synchronization with its proposed capital structure, cost of debt and 3 rate base. I have also adjusted income tax expense to reflect the 4 deduction of the pro forma level of interest resulting from the 5 application of the Public Staff’s recommended return and capital 6 structure to its recommended rate base. 7 CASH WORKING CAPITAL EFFECT OF RATE INCREASE 8 Q. 9 10 PLEASE EXPLAIN THE ADJUSTMENT TO CASH WORKING CAPITAL FOR THE PROPOSED INCREASE. A. The cash working capital lead-lag effect of the proposed revenue 11 increase as recommended by the Public Staff has been calculated 12 on Peedin Exhibit 1, Schedule 2-1(g). 13 REMOVE EDIT REFUND FROM BASE RATES 14 AND ESTABLISH AN EDIT RIDER 15 Q. PLEASE EXPLAIN THE EDIT RIDER. 16 A. In this case, the Company included an adjustment to amortize the 17 excess deferred state taxes that it collected pursuant to the 18 Commission’s May 13, 2004 order in Docket No. M-100, Sub 138. 19 The Company proposes that the excess deferred income taxes 20 (EDIT) addressed in this order be returned to customers over a five- 21 year period. The Public Staff believes that it would be more TESTIMONY OF DARLENE P. PEEDIN PUBLIC STAFF – NORTH CAROLINA UTILITIES COMMISSION DOCKET NO. E-2, SUB 1142 Page 30 1 beneficial to return the EDIT to customers through a rider that will 2 expire at the end of a two-year period. Peedin Exhibit 2 sets forth 3 the Public Staff’s calculations for the EDIT Rider. 4 ADDITIONAL COMMENTS 5 Q. DO YOU HAVE ADDITIONAL COMMENTS? 6 A. Yes. I have additional comments with regard to the lead-lag study 7 submitted in the Company’s filing in this case. As part of its filing in 8 this case, DEP submitted a lead-lag study performed by Ernst & 9 Young, LLP in 2011 using fiscal year 2010 data (the 2010 E&Y 10 study). In conversations with Company personnel, DEP has 11 informally advised the Public Staff that it did not commission a new 12 lead-lag study for this case because the existing study was less than 13 ten years old, and the Company believed it was still valid. The Public 14 Staff reviewed documentation corresponding to samples of select 15 2016 test year transactions. The purpose of this sampling was to 16 verify that the Company’s 2016 test year lead-lag metrics were 17 materially consistent with those determined in connection with the 18 prior rate case in Docket No. E-2, Sub 1023. Based upon the Public 19 Staff’s investigation of the sample items, the Company submitted 20 files containing revised and updated computations for certain 21 schedules to correct the lead day times reported in error in its first 22 submission. The Public Staff recalculated the “refreshed” lead day TESTIMONY OF DARLENE P. PEEDIN PUBLIC STAFF – NORTH CAROLINA UTILITIES COMMISSION DOCKET NO. E-2, SUB 1142 Page 31 1 metrics and found that the Company’s “refreshed” lead day times 2 were materially understated for two of the schedules presented. The 3 Public Staff inquired whether the Company believed that the 4 “refreshed” metrics calculated by the Public Staff, or the Company’s 5 own “refreshed” metrics based on the 2010 E&Y study, were fairly 6 representative of the entire population of 2016 test year transactions. 7 The Company acknowledged, in general terms, that the Public 8 Staff’s analysis is a useful validation of the continuing applicability of 9 the results of the 2010 E&Y study for this case. However, in 10 acknowledgment of the lead day errors identified by the Public Staff, 11 the Company stated that any adjustment to its lead-lag metrics would 12 require a fully updated lead-lag study on all components of DEP’s 13 revenues and expenses. 14 The Public Staff believes that a fully updated lead lag study on all 15 components should have been completed and recommends that the 16 Commission direct the Company to prepare and file a lead-lag study 17 in its next rate case. 18 Q. DOES THIS CONCLUDE YOUR TESTIMONY? 19 A. Yes, it does. TESTIMONY OF DARLENE P. PEEDIN PUBLIC STAFF – NORTH CAROLINA UTILITIES COMMISSION DOCKET NO. E-2, SUB 1142 Page 32 Appendix A Darlene P. Peedin I am a 1989 graduate of Campbell University with a Bachelor of Business Administration degree in Accounting. I am a Certified Public Accountant and a member of the North Carolina Association of Certified Public Accountants. Since joining the Public Staff in September 1990, I have filed testimony or affidavits in several general and fuel clause rate cases of utilities currently organized as Duke Energy Carolinas, LLC, Duke Energy Progress, LLC, Virginia Electric and Power Company (Dominion Energy North Carolina), Nantahala Power & Light Company, Western Carolina University, and Shipyard Power and Light Company, as well as in several water and sewer general rate cases. I have also filed testimony or affidavits in other proceedings, including applications for certificates of public convenience and necessity for the construction of generating facilities and applications for the approval of cost recovery for Renewable Energy and Energy Efficiency Portfolio Standard (REPS) cases. I was promoted to Accounting Manager with responsibility for electric matters in January 2017. I have had supervisory responsibility over the Electric Section of the Accounting Division since 2009. Prior to joining the Public Staff, I was employed by the North Carolina Office of the State Auditor. My duties included the performance of financial, compliance, and operational audits of state agencies, community colleges, and Clerks of Court. INDEX TO PEEDIN EXHIBIT 1 Title Schedule Number 1 REVENUE MPACT OF PUBLIC STAFF ADJUSTMENTS 1 2 SUPPORT FOR RECONCILIATION SCHEDULE 1-1 3 CALCULATION OF GROSS REVENUE EFFECT FACTORS 1-2 4 CALCULATION OF WEIGHTED STATE INCOME TAX RATE 1-3 5 ORIGINAL COST RATE BASE 6 SUMMARY OF PUBLIC STAFF RATE BASE ADJUSTMENTS 7 ADJUSTMENT TO UPDATE PLANT AND ACCUMULATED DEPRECIATION 8 ADJUSTMENT TO UPDATE PLANT IN SERVICE TO AUGUST 31, 2017 2-1(a)(1) 9 ADJUSTMENT TO UPDATE ACCUMULATED DEPRECIATION TO AUGUST 31, 2017 2-1(a)(2) 10 ADJUSTMENT TO STORM COSTS RECOVERED THROUGH REGULATORY ASSET 2-1(b) 11 ADJUSTMENT TO COAL INVENTORY 2-1(c) 12 ADJUSTMENT TO SUTTON CT BLACKSTART PLANT COST 2-1(d) 13 ADJUSTMENT TO MAYO ZLD PLANT COST 2-1(e) 14 CALCULATION OF WORKING CAPITAL FROM LEAD / LAG STUDY UNDER PRESENT RATES 2-1(f) 15 PUBLIC STAFF ADJUSTMENTS TO BE REFLECTED IN LEAD LAG CALCULATION 16 CALCULATION OF WORKING CAPITAL FROM LEAD / LAG STUDY AFTER RATE INCREASE 17 SUMMARY OF REGULATORY ASSETS & LIABILITIES 18 NET OPERATING INCOME FOR RETURN 19 SUMMARY OF PUBLIC STAFF NET OPERATING INCOME ADJUSTMENTS 20 ADJUSTMENT TO DEPRECIATION EXPENSE AND PROPERTY TAXES FOR PLANT UPDATE 21 CALCULATION OF DEPRECIATION EXPENSE ON PLANT UPDATE 22 ADJUSTMENT TO UPDATE CUSTOMER GROWTH TO AUGUST 31, 2017 23 ADJUSTMENT TO UPDATE REVENUES TO AUGUST 31, 2017 3-1(b)(1) 24 CALCULATION OF CUSTOMER GROWTH IMPACT TO FUEL 3-1(b)(2) 25 CALCULATION OF VARIABLE NON-FUEL O&M EXPENSE PER KWH AND PER BILL 3-1(b)(3) 26 ADJUSTMENT TO DISTRIBUTION VEGETATION MANAGEMENT 3-1(c) 27 ADJUSTMENT TO HARRIS COLA AMORTIZATION 3-1(d) 28 ADJUSTMENT TO ALLOCATIONS FROM DEBS 3-1(e) 29 ADJUSTMENT FOR IMPACT OF HURRICANE MATTHEW ON INDUSTRIAL SALES 3-1(f) 30 ADJUSTMENT TO REMOVE EDIT LIABILITY FROM BASE RATES 3-1(g) 31 ADJUSTMENT TO CUSTOMER CONNECT EXPENSES 3-1(h) 32 ADJUSTMENT TO DUKE PIEDMONT COSTS TO ACHIEVE 3-1(i) 33 ADJUSTMENT FOR CHANGE IN DEPRECIATION RATES 3-1(j) 2 2-1 2-1(a) 2-1(f)(1) 2-1(g) 2-2 3 3-1 3-1(a) 3-1(a)(1) 3-1(b) INDEX TO PEEDIN EXHIBIT 1 Title Schedule Number 34 ADJUSTMENT TO INCENTIVES 3-1(k) 35 ADJUSTMENT TO EXECUTIVE COMPENSATION 3-1(l) 36 ADJUSTMENT TO AVIATION EXPENSES 3-1(m) 37 ADJUSTMENT TO OUTSIDE SERVICES 3-1(n) 38 ADJUSTMENT TO STORM EXPENSE 3-1(o) 39 ADJUSTMENT TO SPONSORSHIPS AND DONATIONS 3-1(p) 40 ADJUSTMENT TO LOBBYING EXPENSE 3-1(q) 41 ADJUSTMENT TO BOARD OF DIRECTORS EXPENSE 3-1(r) 42 ADJUSTMENT TO END OF LIFE RESERVE FOR NUCLEAR MATERIALS AND SUPPLIES AMORTIZATION EXPENSE 3-1(s) 43 ADJUSTMENT TO COMPANY'S INFLATION ADJUSTMENT 3-1(t) 44 CALCULATION OF INFLATION RATE 44 INTEREST SYNCHRONIZATION ADJUSTMENT 45 CALCULATION OF COMPANY'S INTEREST SYNCHRONIZATION ADJUSTMENT 46 RETURN ON EQUITY AND ORIGINAL COST RATE BASE BEFORE AND AFTER PUBLIC STAFF PROPOSED INCREASE 4 47 CALCULATION OF PUBLIC STAFF'S ADDITIONAL GROSS REVENUE REQUIREMENT 5 3-1(t)(1) 3-1(u) 3-1(u)(1) Duke Energy Progress Docket No. E-2, Sub 1142 North Carolina Retail Operations REVENUE IMPACT OF PUBLIC STAFF ADJUSTMENTS For the Test Year Ended December 31, 2016 (in Thousands) Line No. Item Peedin Exhibit 1 Schedule 1 Amount 1 2 3 Revenue requirement increase per Company application Revenue impact of Company update Revenue requirement increase per Company after updates 4 Revenue impact of Public Staff adjustments: 3/ 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 Change in equity ratio from 53.00% to 50.00% equity Change in debt cost rate from 4.170% to 4.050% Change in return on equity from 10.75% to 9.20% Change in retention factor Update plant and accumulated depreciation to August 31, 2017 Update revenues to August 31, 2017 Adjust distribution vegetation management Adjust Harris COLA annual amortization Adjust allocations by DEBS to DEP Adjust for lost industrial revenues due to Hurricane Matthew Remove EDIT refund from base rates for treatment as a rider Remove Customer Connect expenses Adjust aviation expenses Adjust executive compensation Adjust outside services ` Remove Duke-Piedmont costs to achieve (CTAs) Adjust storm costs Remove ongoing environmental costs Adjust depreciation rates Adjust incentives Adjust deferred environmental costs Adjust coal inventory Adjust Sutton CT blackstart plant cost Adjust EOL nuclear materials & supplies reserve expense Adjust Mayo ZLD plant cost Adjust sponsorships & donations Adjust lobbying expense Adjust Board of Directors expense Adjust inflation to August 31, 2017 Adjust cash working capital under present rates Adjust cash working capital under proposed rates Rounding Total revenue impact of Public Staff adjustments (31,479) (4,877) (100,083) (13,943) (21,919) (4,073) (3,409) (505) (2,072) 37,284 5/ (7,973) (1,084) (239) (134) (3,831) (21,122) (129,529) (30,644) (17,960) (53,291) (2,968) (519) (355) (2,523) (257) (601) (1,395) 5,362 486 (3,103) 2 (416,754) 38 Public Staff recommended increase in revenue requirement $2,783 4/ 39 40 41 Public Staff recommended increase in base rate revenue requirement (L43) Annual EDIT Rider recommended by Public Staff for two year period Public Staff recommended revenue requirement for first two years (L44 + L45) 1/ 2/ 3/ 4/ 5/ $477,495 1/ (57,958) 2/ 419,537 $2,783 (79,842) 5/ ($77,059) Bateman Exh bit 1, Page 2, Line 8. Based on updated Bateman Exhibit 1 reflecting supplemental adjustments, including correction to cash working capital, provided by Company. Calculated based on Peedin Exhibit 1, Schedules 2, 3, 4, 5, and backup schedules. Peedin Exhibit 1, Schedule 5, Line 5. The Public Staff is recommending that the EDIT regulatory liability be refunded through a two year rider. As a result, the Public Staff has removed the amounts included by the Company in the calculation of its revenue requirement associated with the EDIT refund, and instead has calculated a separate rider that will credit customers for the EDIT refund over a two year period. The calculation of the annual EDIT rider is shown on Peedin Exhibit 2. Duke Energy Progress Docket No. E-2, Sub 1142 North Carolina Retail Operations SUPPORT FOR RECONCILIATION SCHEDULE For the Test Year Ended December 31, 2016 (in Thousands) Line No. 1 2 3 4 5 6 7 Item Update plant and accumulated depreciation to August 31, 2017 Remove EDIT refund for treatment as a rider Adjust depreciation rates Adjust deferred environmental costs Adjust Sutton CT blackstart plant cost Adjust MAYO ZLD plant cost Adjust storm costs 1/ Peedin Exhibit 1, Schedule 2-1, Line 13. 2/ Peedin Exhibit 1, Schedule 3-1, Line 17. 3/ Column (a) plus Column (b). Peedin Exhibit 1 Schedule 1-1 Rate Base Impact (a) ($14,917) 7,094 3,155 (11,142) (347) (1,747) (506) 1/ Income Statement Impact (b) $974 30,190 (33,799) (42,149) (172) (776) (20,616) 2/ Total Revenue Impact (c) ($13,943) 37,284 (30,644) (53,291) (519) (2,523) (21,122) 3/ Duke Energy Progress Docket No. E-2, Sub 1142 North Carolina Retail Operations CALCULATION OF GROSS REVENUE EFFECT FACTORS For the Test Year Ended December 31, 2016 (in Thousands) Line No. Capital Structure (a) Item 1 2 3 4 Rate Base Factor Long-term debt Common equity Total (Sum of Lines 2 and 3) 5 6 7 8 9 10 11 12 13 14 Net Income Factor Total revenue Uncollectibles Balance (L6 - L7) Regulatory fee (L8 x 0.140%) Balance (L8 - L9) State income tax (L10 x 3.1691%) Balance (L10 - L11) Federal income tax (L12 x 35%) Retention factor (L12 - L13) Peedin Exhibit 1 Schedule 1-2 50.000% 1/ 50.000% 1/ 100.000% Cost Rates (b) 4.050% 1/ 9.20% 1/ Retention Factor (c) 0.9968025 2/ 0.6273883 3/ Gross Revenue Effect (d) 0.0203150 4/ 0.0733198 4/ 0.0936348 Amount 1/ 2/ 3/ 4/ 5/ 6/ 7/ 8/ 6/ 7/ 8/ Per Public Staff witness Parcell. Line 10. Line 14. Column (a) times Column (b) divided by Column (c). NCUC Form E-1, Item No. 10, NC-0105, Line 3. Current regulatory fee rate effective July 1, 2016. Peedin Exhibit 1, Schedule 1-3, Line 4, Column (a). Statutory rate. 1.0000000 0.0018000 5/ 0.9982000 0.0013975 0.9968025 0.0315897 0.9652128 0.3378245 0.6273883 Duke Energy Progress Docket No. E-2, Sub 1142 North Carolina Retail Operations CALCULATION OF WEIGHTED STATE INCOME TAX RATE For the Test Year Ended December 31, 2016 (in Thousands) Line No. Item 1 2 3 4 Weighted state income tax rate Apportionment factor State income tax rate Weighted state income tax rate 5 6 7 8 Composite income tax rate Weighted state income tax rate (L4) Federal income tax rate Composite income tax rate 1/ 2/ 3/ 4/ 5/ 6/ Peedin Exhibit 1 Schedule 1-3 Total System (a) 3.1691% 1/ 3.1691% 35% 5/ 37.0599% 6/ Sum of Columns (b) and (c). NCUC Form E-1, Item No. 10, NC-0104, Column (b). NCUC Form E-1, Item No. 10, NC-0104, Column (a). Line 1 times Line 2. Statutory rate. 1 minus ((1 minus Line 6) times (1 minus Line 7)). North Carolina (b) 84.6380% 2/ 3.00% 3/ 2.53914% 4/ South Carolina (c) 12.6000% 2/ 5.00% 3/ 0.63000% 4/ Duke Energy Progress Docket No. E-2, Sub 1142 North Carolina Retail Operations ORIGINAL COST RATE BASE For the Test Year Ended December 31, 2016 (in Thousands) Line No. Item 1 2 3 4 5 6 7 8 9 10 11 12 Electric plant in service Accumulated depreciation and amortization Net electric plant in service (L1 + L2) Materials and supplies Operating funds per lead-lag study Unamortized debt Regulatory assets and liabilities Customer deposits Accumulated deferred income taxes Operating reserves Construction work in progress Total original cost rate base (Sum of L3 thru L11) 1/ 2/ 3/ 4/ 5/ Peedin Exhibit 1 Schedule 2 Under Present Rates NC Retail Adjusted Public Staff Per Company 1/ Adjustments 2/ (a) (b) $16,404,172 (7,505,044) 8,899,128 641,023 138,062 30,261 522,411 (121,384) (2,027,617) (66,990) 87,192 $8,102,086 ($56,193) (91,793) (147,986) (31,701) 5,190 (77,259) 28,631 ($223,125) After Public Staff Adjustments 3/ (c) $16,347,979 (7,596,837) 8,751,142 609,322 143,252 30,261 445,152 (121,384) (1,998,986) (66,990) 87,192 $7,878,961 After Public Staff Recommended Increase Rate After Rate Increase Increase (d) (e) $0 165 4/ $165 $16,347,979 (7,596,837) 8,751,142 609,322 143,417 30,261 445,152 (121,384) (1,998,986) (66,990) 87,192 $7,879,126 Based on updated Bateman Exhibit 1 reflecting supplemental adjustments, including correction to cash working capital, provided by Company. Peedin Exhibit 1, Schedule 2-1, Column (j). Column (a) plus Column (b). Peedin Exhibit 1, Schedule 2-1(g), Line 48, Column (k). Column (c) plus Column (d). 5/ Duke Energy Progress Docket No. E-2, Sub 1142 North Carolina Retail Operations SUMMARY OF PUBLIC STAFF RATE BASE ADJUSTMENTS For the Test Year Ended December 31, 2016 (in Thousands) Peedin Exhibit 1 Schedule 2-1 Page 1 of 2 Update Plant and Accumulated Depreciation to 8/31/17 1/ (a) Line No. Item 1 2 3 4 5 6 7 8 9 10 11 12 Electric plant in service Accumulated depreciation and amortization Net electric plant in service (L1 + L2) Materials and supplies Operating funds per lead-lag study Unamortized debt Regulatory assets and liabilities Customer deposits Accumulated deferred income taxes Operating reserves Construction work in progress Total original cost rate base (Sum of L3 thru L11) 13 Revenue requirement impact 11/ Remove EDIT Refund for Treatment as a Rider (b) 2/ Adjust Depreciation Rates 3/ (c) Remove Deferred Environmental Costs 4/ (d) Adjust Storm Costs (e) ($31,525) (127,781) (159,306) ($159,306) $0 120,372 (44,610) $75,762 $0 33,690 33,690 $33,690 $0 (189,052) 70,062 ($118,990) $0 (8,579) 3,179 ($5,400) ($14,917) $7,094 $3,155 ($11,142) ($506) 1/ 2/ 3/ 4/ 5/ Peedin Exhibit 1, Schedule 2-1(a), Line 3. Peedin Exhibit 1, Schedule 3-1(g). Peedin Exhibit 1, Schedule 3-1(j), Line 10. Based on recommendation of Public Staff witness Maness. Peedin Exhibit 1, Schedule 2-1(b). 5/ Duke Energy Progress Docket No. E-2, Sub 1142 North Carolina Retail Operations SUMMARY OF PUBLIC STAFF RATE BASE ADJUSTMENTS For the Test Year Ended December 31, 2016 (in Thousands) Peedin Exhibit 1 Schedule 2-1 Page 2 of 2 Adjust Coal Inventory (f) Line No. Item 1 2 3 4 5 6 7 8 9 10 11 12 Electric plant in service Accumulated depreciation and amortization Net electric plant in service (L1 + L2) Materials and supplies Operating funds per lead-lag study Unamortized debt Regulatory assets and liabilities Customer deposits Accumulated deferred income taxes Operating reserves Construction work in progress Total original cost rate base (Sum of L3 thru L11) 13 Revenue requirement impact 11/ 6/ Adjust Sutton CT Blackstart Plant Cost (g) 7/ Adjust Mayo ZLD Plant Cost (h) 8/ Adjust Cash Working Capital 9/ (i) Total Rate Base Adjustments 10/ (j) $0 (31,701) ($31,701) ($3,882) 172 (3,710) ($3,710) ($20,786) 2,126 (18,660) ($18,660) $0 5,190 $5,190 ($223,125) ($2,968) ($347) ($1,747) $486 ($20,892) 6/ 7/ 8/ 9/ 10/ 11/ ($56,193) (91,793) (147,986) (31,701) 5,190 (77,259) 28,631 - Peedin Exhibit 1, Schedule 2-1(c). Peedin Exhibit 1, Schedule 2-1(d). Peedin Exhibit 1, Schedule 2-1(e). Peedin Exhibit 1, Schedule 2-1(f), Line 50. Sum of Column (a) through Column (i). Line 12 times rate base retention factor of 0.0936348 from Peedin Exh bit 1, Schedule 1-2. Duke Energy Progress Docket No. E-2, Sub 1142 North Carolina Retail Operations ADJUSTMENT TO UPDATE PLANT AND ACCUMULATED DEPRECIATION For the Test Year Ended December 31, 2016 (in Thousands) Line No. Item 1 2 3 Adjustment to update balances to 8/31/17 Adjustment to depreciation expense on post test year additions Total adjustment to update plant and accumulated depreciation (L1 + L2) 1/ Peedin Exhibit 1, Schedule 2-1(a)(1), Line 14, Column (g). 2/ Peedin Exhibit 1, Schedule 2-1(a)(2), Line 10, Column (e). 3/ Peedin Exhibit 1, Schedule 3-1(a), negative of Line 4. Peedin Exhibit 1 Schedule 2-1(a) Plant in Service (a) ($31,525) 1/ 0 ($31,525) Accumulated Depreciation (b) ($126,610) 2/ (1,171) 3/ ($127,781) Duke Energy Progress Docket No. E-2, Sub 1142 North Carolina Retail Operations ADJUSTMENT TO UPDATE PLANT IN SERVICE TO AUGUST 31, 2017 For the Test Year Ended December 31, 2016 (in Thousands) Line No. Peedin Exhibit 1 Schedule 2-1(a)(1) Amount As Of 8/31/2017 (a) Item 1 2 3 4 5 6 7 8 9 10 11 Steam plant Hydro plant Other production plant Nuclear plant Acquisition adjustment Total production plant Transmission plant Distribution plant General plant Intangible plant Total plant in service 12 13 14 Update to plant per Public Staff (L11) Company adjustment for 2017 plant additions Public Staff adjustment to update plant (L15 - L16) 1/ 2/ 3/ 4/ 5/ 6/ 7/ 8/ $3,807,623 131,339 3,083,346 8,333,143 349,802 15,705,253 2,574,278 6,128,920 633,205 514,936 $25,556,592 1/ Total System Amount As Of 12/31/2016 2/ (b) $3,772,494 123,104 3,002,208 7,991,323 349,802 15,238,931 2,463,973 5,886,275 613,022 408,346 $24,610,547 Change in Plant in Service (c) $35,129 8,235 81,138 341,820 466,322 110,305 242,645 20,183 106,590 $946,045 Based on Company response to Public Staff Data Request No. 128, Item 1. Based on Company response to Public Staff Data Request No. 39, Item 1. Column (a) minus Column (b). Based on Company responses to Public Staff Data Request Nos. 128, Item 4 and 160, Item 1. Column (c) plus Column (d). Bateman Supplemental Exhibit 1, Page 39, NC-1101 Supplemental, Lines 14 through 18. Column (e) times Column (f). Bateman Supplemental Exhibit 1, Page 39, NC-1101 Supplemental, Line 19. Less: Non-Fuel Rider Costs & FERC Mitigation Project 3/ Activity 4/ (d) ($5,673) (30,987) (36,660) (3,112) (34) 91 (1,535) ($41,250) Adjusted Change in Plant in Service (e) $29,456 8,235 81,138 310,833 429,662 107,193 242,611 20,274 105,055 $904,795 5/ NC Retail Percentage (f) 60.6008% 59.1442% 86.6059% 72.1559% 66.4632% 6/ NC Retail Amount (g) $260,379 63,398 210,115 14,629 69,823 $618,344 7/ 7/ 7/ 7/ 7/ $618,344 649,869 8/ ($31,525) Duke Energy Progress Docket No. E-2, Sub 1142 North Carolina Retail Operations ADJUSTMENT TO UPDATE ACCUMULATED DEPRECIATION TO AUGUST 31, 2017 For the Test Year Ended December 31, 2016 (in Thousands) Line No. Item 1 2 3 4 5 6 Production plant Transmission plant Distribution plant General plant Intangible plant Total accumulated depreciation 7 8 9 10 Change in accumulated depreciation (L6) Remove non-fuel rider activity Remove FERC mitigation projects activity Public Staff adjustment to update to 8/31/17 1/ 2/ 3/ 4/ 5/ 6/ 7/ Peedin Exhibit 1 Schedule 2-1(a)(2) Amount As Of 8/31/2017 (a) ($6,933,125) (799,826) (2,965,547) (240,554) (296,227) ($11,235,279) 1/ Total System Amount As Of 12/31/2016 2/ (b) ($6,807,632) (789,438) (2,899,918) (243,874) (272,864) ($11,013,726) Change in Accumulated Depreciation 3/ (c) ($125,493) (10,388) (65,629) 3,320 (23,363) ($221,553) NC Retail Percentage (d) 60.6008% 59.1442% 86.6059% 72.1559% 66.4632% 4/ NC Retail Amount (e) ($76,050) (6,144) (56,839) 2,396 (15,528) ($152,165) 5/ 5/ 5/ 5/ 5/ ($152,165) 25,248 6/ 307 7/ ($126,610) Based on Company response to Public Staff Data Request No. 24, Item 3. Based on Company response to Public Staff Data Request No. 39, Item 1. Column (a) minus Column (b). Bateman Supplemental Exhibit 1, Page 39, NC-1101 Supplemental, Lines 14 through 18. Column (c) times Column (d). Non-fuel rider accumulated depreciation as of 8/31/17 of $114,920,000 per response to Public Staff Data Request No. 128, Item 4 less non-fuel rider plant as of 12/31/16 of $89,672,000 from Bateman Supplemental Exhibit 1, Page 19, NC-0701, Line 63. FERC mitigation project accumulated depreciation as of 8/31/17 of $2,580,000 per response to Public Staff Data Request No. 160, Item 1 less amount as of December 31, 2016 per Public Staff Data Request No. 39, Item 1 of $2,061,000 times NC retail percentage of 59.1442%. Duke Energy Progress Docket No. E-2, Sub 1142 North Carolina Retail Operations ADJUSTMENT TO STORM COSTS RECOVERED THROUGH REGULATORY ASSET For the Test Year Ended December 31, 2016 (in Thousands) Line No. Peedin Exhibit 1 Schedule 2-1(b) Item Amount 1 2 3 4 5 6 7 Regulatory assets and liabilities NC retail incremental O&M expenses related to storms for 2016 Less: Highest level of storm costs included in normalized level 2016 abnormal storm costs to be amortized (L1 - L2) Amortization period recommended by Public Staff Annual amortization of 2016 abnormal storm costs per Public Staff (L3 / L4) Number of years amortized as of January 31, 2018 Accumulated amortization per Public Staff (L5 X L6) $80,152 27,400 52,752 10 5,275 1.33 7,016 8 9 10 Unamortized balance of storm costs per Public Staff (L3 - L7) Storm deferral balance included in regulatory assets by Company Public Staff adjustment to regulatory assets and liabilities (L8 - L9) 45,736 54,315 5/ ($8,579) 11 Accumulated deferred income taxes Public Staff adjustment to accumulated deferred income taxes 12 13 14 Amortization expense included in O&M expenses Annual amortization expense per Public Staff (L5) Annual amortization included by Company Public Staff adjustment to amortization of 2016 storm costs (L12 - L13) 1/ 2/ 3/ 4/ 5/ 6/ 7/ From Company response to Public Staff Data Request No. 121, Item 1. Initial Comments of Public Staff, Page 11, filed on March 21, 2017 in Docket No. E-2, Sub 1131. Amortization period recommended by Public Staff. Calculated from October 2016 as recommended by Public Staff in Docket No. E-2, Sub 1131. Bateman Supplemental Exh bit 1, Page 60, NC-2001(C), Line 45. Negative of Line 10 times composite income tax rate of 37.0599%. Bateman Supplemental Exh bit 1, Page 60, NC-2001(C), Line 26. 1/ 2/ 3/ 4/ $3,179 6/ $5,275 27,157 7/ ($21,882) Duke Energy Progress Docket No. E-2, Sub 1142 North Carolina Retail Operations ADJUSTMENT TO COAL INVENTORY For the Test Year Ended December 31, 2016 (in Thousands) Line No. Item 1 2 3 4 5 6 7 8 9 10 Estimated full load burn - excluding retirements (December 2016) Coal burn percentage per Public Staff Target number of days in inventory per Public Staff Target coal inventory balance per Public Staff (tons) (L1 x L2 x L3) Average delivered coal costs per ton Coal inventory balance per Public Staff (L4 x L5 / 1,000) NC retail percentage Coal inventory balance per Public Staff - NC retail (L6 x L7) Coal inventory balance per Company Adjustment to coal inventory (L8 - L9) 1/ 2/ 3/ 4/ NCUC Form E-1, Item No. 10, NC-1601, Line 2. Based on recommendation of Public Staff witness Metz. NCUC Form E-1, Item No. 10, NC-1601, Line 5. NCUC Form E-1, Item No. 10, NC-1601, Line 6. Peedin Exhibit 1 Schedule 2-1(c) Amount 36,049 70.00% 30 757,029 $76.11 57,617 60.8102% 35,037 66,738 ($31,701) 1/ 2/ 2/ 3/ 4/ 5/ Duke Energy Progress Docket No. E-2, Sub 1142 North Carolina Retail Operations ADJUSTMENT TO SUTTON CT BLACKSTART PLANT COST For the Test Year Ended December 31, 2016 (in Thousands) Line No. Item 1 2 3 Plant in service Adjustment to cost of Sutton CT Blackstart plant - total system NC retail percentage Adjustment to plant in service - NC retail (L1 x L2) 4 5 6 Depreciation expense Adjustment to plant in service - NC retail (L3) Depreciation rate recommended by Public Staff Adjustment to depreciation expense - NC retail (L4 x L5) 7 Accumulated depreciation Adjustment to accumulated depreciation (-L6) 1/ Based on recommendation of Public Staff witness Metz. 2/ Allocation factor for production plant (DPALL). 3/ Based on recommendation of Public Staff witness McCullar. Peedin Exhibit 1 Schedule 2-1(d) Amount ($6,406) 1/ 60.6008% 2/ ($3,882) ($3,882) 4.44% 3/ ($172) $172 Duke Energy Progress Docket No. E-2, Sub 1142 North Carolina Retail Operations ADJUSTMENT TO MAYO ZLD PLANT COST For the Test Year Ended December 31, 2016 (in Thousands) Line No. Item Peedin Exhibit 1 Schedule 2-1(e) Amount 1 2 3 Plant in service Adjustment to cost of Mayo Zero Liquid Discharge (ZLD) plant - total system NC retail percentage Adjustment to plant in service - NC retail (L1 x L2) ($34,300) 1/ 60.6008% 2/ ($20,786) 4 5 6 Depreciation expense Adjustment to plant in service - NC retail (L3) Depreciation rate recommended by Public Staff Adjustment to depreciation expense - NC retail (L4 x L5) ($20,786) 3.72% 3/ ($773) 7 8 9 Accumulated depreciation Adjustment to depreciation expense - NC retail Number of years in service as of August 31, 2017 Adjustment to accumulated depreciation (-L7 x L8) 1/ 2/ 3/ 4/ Based on recommendation of Public Staff witness Lucas. Allocation factor for production plant (DPALL). Based on recommendation of Public Staff witness McCullar. Based on December 2014 in service date for Mayo ZLD plant. ($773) 2.75 4/ $2,126 Duke Energy Progress Docket No. E-2, Sub 1142 North Carolina Retail Operations CALCULATION OF WORKING CAPITAL FROM LEAD / LAG STUDY UNDER PRESENT RATES For the Test Year Ended December 31, 2016 (in Thousands) Line No. Item Peedin Exhibit 1 Schedule 2-1(f) After Company Adjustments 3/ (c) $3,394,095 105,307 6,901 6,934 8,824 9,497 8,580 (139) 5,115 6,809 3,551,923 ($407,557) (3,136) (410,693) $2,986,538 105,307 6,901 6,934 5,688 9,497 8,580 (139) 5,115 6,809 3,141,230 $36,138 36,138 $3,022,676 105,307 6,901 6,934 5,688 9,497 8,580 (139) 5,115 6,809 3,177,368 38.01 32.13 68.43 62.57 31.49 154.04 32.89 38.01 37.33 38.19 $314,772 9,270 1,294 1,189 491 4,008 773 (14) 696 332,479 780,539 295,043 59,096 406,605 4,706 911 19,322 558,414 2,124,636 (144,614) (31,603) 31,835 (319) (91,414) 25,484 83,703 (126,928) 635,925 263,440 59,096 438,440 4,387 911 19,322 558,414 (91,414) 25,484 83,703 1,997,708 9,530 (18,740) 48 (2,171) (21,882) (136,797) (170,012) 645,455 263,440 59,096 419,700 4,435 911 19,322 556,243 (91,414) 3,602 (53,094) 1,827,696 (24.79) (35.54) (29.14) (90.15) (555.00) (90.15) (134.00) 177.25 (30.47) (26.25) (26.25) (43,838) (25,651) (33,507) (1,095) (334) 9,383 (46,435) 6,574 3,818 (131,085) Per Books Amounts (a) 1/ Public Staff Adjustments 4/ (d) After Public Staff Adjustments 5/ (e) Working Capital From Lead/ Lag Study (g) Company Ratemaking Adjustments 2/ (b) (Lead) / Lag Days 6/ (f) 1 2 3 4 5 6 7 8 9 10 11 12 Electric operating revenues: Rate revenues Sales for resale revenues Forfeited discounts Miscellaneous service revenues Rent revenues - additional facili ies - lighting Rent revenues - distribution pole Rent revenues - other Other revenues - REPS and NC retail specific Other revenues - dis plt rel Other operating revenues Electric operating revenues 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Fuel used in electric generation Account 555 - Purchased Power Account 557 - Deferred Fuel Labor expense O&M regulatory fee - NC retail O&M regulatory expense - SC retail O&M regulatory expense - NC coal ash fee O&M regulatory expense - trans O&M A&G all plant related Other O&M expense Adjustment eliminate non-fuel riders A&G Adjustments to levelize or amortize costs Other adjustments to O&M expense Total O&M expenses 27 28 29 Depreciation and amortization expense Adjustment to update fuel costs Depreciation and amortization expense 483,899 483,899 85,384 (4,379) 81,005 569,283 (4,379) 564,904 (49,140) (49,140) 520,143 (4,379) 515,764 (24.79) 30 31 32 33 34 35 36 37 Other taxes - labor related Other taxes - property tax Other taxes - federal heavy vehicle use tax Other taxes - electric excise tax - SC Other taxes - privilege tax Other taxes - PUC license tax - SC Adjustment to eliminate non-fuel riders Total taxes o her than income 27,776 61,951 56 11,169 100,952 265 4,867 (6,726) (1,594) 28,041 66,818 56 11,169 (6,726) 99,358 (214) (214) 28,041 66,604 56 11,169 (6,726) 99,144 (33.60) (184.15) (35.31) (35.31) 232.69 119.33 (131.97) 297 297 (2,581) (33,603) (5) 7,120 2,432 (26,637) 7/ Duke Energy Progress Docket No. E-2, Sub 1142 North Carolina Retail Operations CALCULATION OF WORKING CAPITAL FROM LEAD / LAG STUDY UNDER PRESENT RATES For the Test Year Ended December 31, 2016 (in Thousands) Line No. Item 38 Interest on customer deposits 39 40 41 Current state and federal income tax Deferred income taxes Total income taxes 42 Amortization of ITC 43 Total electric operating expenses 44 45 46 Interest expense Income available for common equity Net operating income for return 47 Total requirement 48 49 50 Cash working capital per Public Staff (L12 + L47) Amount per Company application Adjustment to cash working capital 1/ 2/ 3/ 4/ 5/ 6/ 7/ Peedin Exhibit 1 Schedule 2-1(f) Per Books Amounts (a) 8,662 (60,068) 307,281 247,213 (3,323) 1/ Company Ratemaking Adjustments 2/ (b) (133,791) (133,791) 1,230 After Company Adjustments 3/ (c) 8,662 Public Staff Adjustments 4/ (d) - After Public Staff Adjustments 5/ (e) 8,662 (193,859) 307,281 113,422 94,569 94,569 (99,290) 307,281 207,991 (2,093) - (2,093) 2,962,039 (180,078) 2,781,961 165,499 424,385 589,884 (6,382) (224,233) (230,615) 159,117 200,152 359,269 327 160,608 160,935 159,444 360,760 520,204 $3,551,923 ($410,693) $3,141,230 $36,138 $3,177,368 NCUC Form E-1, Item No. 14, Lead Lag Summary Detail, NC Retail Jurisdictional Amount. Based on corrected Supplemental Adjustment NC-3500 provided by Company. Column (a) plus Column (b). Peedin Exhibit 1, Schedule 2-1(f)(1), Column (z). Column (c) plus Column (d). NCUC Form E-1, Item No. 14, Lead Lag Summary Detail. Column (e) divided by 365 days times Column (f). (124,797) (Lead) / Lag Days 6/ (f) Working Capital From Lead/ Lag Study (g) 7/ (137.50) (3,263) (36.50) - 9,929 9,929 - 2,657,164 (150,759) (90.59) - (39,573) (39,573) ($190,332) $142,147 136,957 2/ $5,190 Duke Energy Progress Docket No. E-2, Sub 1142 North Carolina Retail Operations PUBLIC STAFF ADJUSTMENTS TO BE REFLECTED IN LEAD LAG CALCULATION For the Test Year Ended December 31, 2016 (in Thousands) Line No. Peedin Exhibit 1 Schedule 2-1(f)(1) Page 1 of 3 Update Plant to 8/31/2017 (a) Item 1 2 3 4 5 6 7 8 9 10 11 12 Electric operating revenues: Rate revenues Sales for resale revenues Forfeited discounts Miscellaneous service revenues Rent revenues - additional facilities - lighting Rent revenues - distribution pole Rent revenues - other Other revenues - REPS and NC retail specific Other revenues - dis plt rel Other operating revenues Electric operating revenues (Sum of L1 thru L11) 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Fuel used in elec gen Account 555 - Purchased Power Account 557 - Deferred Fuel Labor expense O&M regulatory fee - NC retail O&M regulatory expense - SC retail O&M regulatory expense - NC coal ash fee O&M regulatory expense - trans O&M A&G all plant related Other O&M expense Adjustment eliminate non-fuel riders A&G Adjustments to levelize or amortize costs Other adjustments to O&M expense Total O&M expenses (Sum of L13 thru L25) 27 28 29 Depreciation and amortization expense Adjustment to update fuel costs Depreciation and amortization expense (L27 + L28) 30 31 32 33 34 35 36 37 Other taxes - labor related Other taxes - property tax Other taxes - federal heavy vehicle use tax Other taxes - electric excise tax - SC Other taxes - privilege tax Other taxes - PUC license tax - SC Adjustment to eliminate non-fuel riders Total taxes other than income (Sum of L30 thru L36) 38 Interest on customer deposits 39 40 41 Current state and federal income tax Deferred income taxes Total income taxes (L39 + L40) 42 Amortization of ITC 43 Total electric operating expenses 44 45 46 Interest expense Income available for common equity Net operating income for return (L44 + L45) 47 Total requirement (L43 + L46) 1/ 1/ Adjust Distribution Vegetation Management 1/ (c) $0 - $34,073 34,073 - 9,530 48 2,646 12,224 1,171 1,171 - - - - (201) (201) (359) (359) 2/ Update Customer Growth to 8/31/2017 (b) $0 (4,060) (4,060) Adjust Harris COLA (d) 1/ $0 (3,399) (3,399) - Adjust Allocations from DEBS to DEP (e) 1/ $0 - Adjust for Lost Industrial Revenues due to Hurricane Matthew 1/ (f) 1/ Remove Duke Piedmont CTAs (i) 1/ $0 - $0 - (503) (503) - - - 0 - - 30,093 30,093 - - - - - - - - - - - - 1,505 1,505 1,260 1,260 186 186 765 765 - 1/ Remove Customer Connect Expenses (h) $2,065 2,065 8,097 8,097 - Remove EDIT Refund for Treatment as a Rider (g) - - 611 20,321 (2,555) (2,139) (317) - (611) (611) 13,752 13,752 2,555 2,555 2,139 2,139 317 317 1,300 1,300 $0 $34,073 $0 $0 $0 $2,065 1/ Based on adjustments made by Public Staff in Peedin Exhibit 1, Schedule 3-1. 2/ Line 12 minus Line 43 minus Line 44. (11,152) (11,152) (7,947) (7,947) $0 (3,818) (3,818) Adjust Depreciation Rates 1/ (j) $0 (33,690) (33,690) - Adjust Incentives (k) 1/ $0 (17,903) (17,903) - - - - - 2,945 2,945 1,415 1,415 12,485 12,485 6,635 6,635 - - 765 18,941 (5,002) (2,403) (21,205) (11,268) (18,941) (18,941) 5,002 5,002 2,403 2,403 21,205 21,205 11,268 11,268 $0 $0 $0 $0 $0 - - - - Duke Energy Progress Docket No. E-2, Sub 1142 North Carolina Retail Operations PUBLIC STAFF ADJUSTMENTS TO BE REFLECTED IN LEAD LAG CALCULATION For the Test Year Ended December 31, 2016 (in Thousands) Line No. Peedin Exhibit 1 Schedule 2-1(f)(1) Page 2 of 3 Remove Ongoing Environmental Costs 1/ (l) Item Adjust Executive Compensation 1/ (m) 1 2 3 4 5 6 7 8 9 10 11 12 Electric operating revenues: Rate revenues Sales for resale revenues Forfeited discounts Miscellaneous service revenues Rent revenues - additional facilities - lighting Rent revenues - distribution pole Rent revenues - other Other revenues - REPS and NC retail specific Other revenues - dis plt rel Other operating revenues Electric operating revenues (Sum of L1 thru L11) 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Fuel used in elec gen Account 555 - Purchased Power Account 557 - Deferred Fuel Labor expense O&M regulatory fee - NC retail O&M regulatory expense - SC retail O&M regulatory expense - NC coal ash fee O&M regulatory expense - trans O&M A&G all plant related Other O&M expense Adjustment eliminate non-fuel riders A&G Adjustments to levelize or amortize costs Other adjustments to O&M expense Total O&M expenses (Sum of L13 thru L25) 27 28 29 Depreciation and amortization expense Adjustment to update fuel costs Depreciation and amortization expense (L27 + L28) - - 30 31 32 33 34 35 36 37 Other taxes - labor related Other taxes - property tax Other taxes - federal heavy vehicle use tax Other taxes - electric excise tax - SC Other taxes - privilege tax Other taxes - PUC license tax - SC Adjustment to eliminate non-fuel riders Total taxes other than income (Sum of L30 thru L36) - - 38 Interest on customer deposits 39 40 41 Current state and federal income tax Deferred income taxes Total income taxes (L39 + L40) 42 Amortization of ITC 43 Total electric operating expenses 44 45 46 Interest expense Income available for common equity Net operating income for return (L44 + L45) 47 Total requirement (L43 + L46) $0 (129,115) (129,115) (238) (238) 1/ $0 (1,068) (1,068) (13) (13) Adjust Sutton CT Blackstart Plant Cost (p) 1/ Adjust Mayo ZLD Plant Cost (q) 1/ $0 - $0 - $0 - - - - (355) (355) - (172) (172) - (773) (773) - Adjust Storm Costs (r) Adjust Lobbying Expense (s) $0 - (21,882) 1,333 (20,549) 1/ $0 (599) (599) Adjust Board of Directors Expense (t) 1/ $0 (1,390) (1,390) - - - - - - Adjust Deferred Environmental Costs 1/ (u) $0 (42,015) (42,015) - Adjust Outside Services (v) 1/ $0 (133) (133) - - - - - - - - - - - - 47,850 47,850 88 88 401 401 132 132 64 64 286 286 7,615 7,615 222 222 515 515 15,571 15,571 49 49 - 2/ $0 - Adjust Aviation Expenses (n) Adjust EOL Nuclear M&S Reserve Amortization 1/ (o) - - - - - - - - - - (81,265) (150) (680) (223) (108) (487) (12,934) (377) (875) (26,444) (84) 81,265 81,265 150 150 680 680 223 223 108 108 487 487 12,934 12,934 377 377 875 875 26,444 26,444 84 84 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Duke Energy Progress Docket No. E-2, Sub 1142 North Carolina Retail Operations PUBLIC STAFF ADJUSTMENTS TO BE REFLECTED IN LEAD LAG CALCULATION For the Test Year Ended December 31, 2016 (in Thousands) Line No. Peedin Exhibit 1 Schedule 2-1(f)(1) Page 3 of 3 Adjust Sponsorships and Donations 1/ (w) Item 1 2 3 4 5 6 7 8 9 10 11 12 Electric operating revenues: Rate revenues Sales for resale revenues Forfeited discounts Miscellaneous service revenues Rent revenues - additional facilities - lighting Rent revenues - distribution pole Rent revenues - other Other revenues - REPS and NC retail specific Other revenues - dis plt rel Other operating revenues Electric operating revenues (Sum of L1 thru L11) 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Fuel used in elec gen Account 555 - Purchased Power Account 557 - Deferred Fuel Labor expense O&M regulatory fee - NC retail O&M regulatory expense - SC retail O&M regulatory expense - NC coal ash fee O&M regulatory expense - trans O&M A&G all plant related Other O&M expense Adjustment eliminate non-fuel riders A&G Adjustments to levelize or amortize costs Other adjustments to O&M expense Total O&M expenses (Sum of L13 thru L25) 27 28 29 Depreciation and amortization expense Adjustment to update fuel costs Depreciation and amortization expense (L27 + L28) 30 31 32 33 34 35 36 37 Other taxes - labor related Other taxes - property tax Other taxes - federal heavy vehicle use tax Other taxes - electric excise tax - SC Other taxes - privilege tax Other taxes - PUC license tax - SC Adjustment to eliminate non-fuel riders Total taxes other than income (Sum of L30 thru L36) 38 Interest on customer deposits 39 40 41 Current state and federal income tax Deferred income taxes Total income taxes (L39 + L40) 42 Amortization of ITC 43 Total electric operating expenses 44 45 46 Interest expense Income available for common equity Net operating income for return (L44 + L45) 47 Total requirement (L43 + L46) $0 - Interest Synchronization 1/ (y) Total Public Staff Adjustments 1/ (z) $0 - $0 - 5,344 5,344 - 9,530 (18,740) 48 (2,171) (21,882) (136,797) (170,012) - - - (49,140) (49,140) - - - (214) (214) (256) (256) 95 95 - 2/ Adjustment to Inflation Adjustment 1/ (x) (1,980) (1,980) - (121) (121) - $36,138 36,138 94,569 94,569 - (161) 3,364 (121) (124,797) 161 161 (3,364) (3,364) 327 (206) 121 327 160,608 160,935 $0 $36,138 $0 $0 Duke Energy Progress Docket No. E-2, Sub 1142 North Carolina Retail Operations CALCULATION OF WORKING CAPITAL FROM LEAD / LAG STUDY AFTER RATE INCREASE For the Test Year Ended December 31, 2016 (in Thousands) Line No. Item Peedin Exhibit 1 Schedule 2-1(g) Page 1 of 2 Under Present Rates After Adjustments 1/ (a) 1 2 3 4 5 6 7 8 9 10 11 12 Electric operating revenues: Rate revenues Sales for resale revenues Forfeited discounts Miscellaneous service revenues Rent revenues - additional facilities - lighting Rent revenues - distribution pole Rent revenues - other Other revenues - REPS and NC retail specific Other revenues - dis plt rel Other operating revenues Electric operating revenues 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Fuel used in elec gen Account 555 - Purchased Power Account 557 - Deferred Fuel Labor expense O&M regulatory fee - NC retail O&M regulatory expense - SC retail O&M regulatory expense - NC coal ash fee O&M regulatory expense - trans O&M A&G all plant related Other O&M expense Adjustment eliminate non-fuel riders A&G Adjustments to levelize or amortize costs Other adjustments to O&M expense Total O&M expenses 27 28 29 Depreciation and amortization expense Adjustment to eliminate non-fuel riders Depreciation and amortization expense 30 31 32 33 34 35 36 37 Other taxes - labor related Other taxes - property tax Other taxes - federal heavy vehicle use tax Other taxes - electric excise tax - SC Other taxes - privilege tax Other taxes - PUC license tax - SC Adjustment to eliminate non-fuel rider costs Total taxes other than income 38 Interest on customer deposits 39 40 41 Current state and federal income tax Deferred income taxes Total income taxes 42 Amortization of ITC 43 Total electric operating expenses 44 45 46 Interest expense Income available for common equity Net operating income for return 47 Total requirement $3,177,368 48 49 50 Cumulative change in working capital Rate base under present rates Rate base after rate increase $7,878,961 51 52 Overall rate of return (L46 / L50) Target rate of return 1/ 2/ 3/ 4/ 5/ 6/ (Lead) Lag Days (b) 4/ teration 1 With Increase (d) Increase (c) 13/ 38.01 32.13 68.43 62.57 31.49 154.04 32.89 38.01 37.33 645,455 263,440 59,096 419,700 4,435 911 19,322 556,243 (91,414) 3,602 (53,094) 1,827,696 (24.79) (35.54) (29.14) (90.15) (555.00) (90.15) (134.00) 177.25 (30.47) (26.25) (26.25) 4 5 9 520,143 (4,379) 515 764 (24.79) - 520,143 (4,379) 515 764 - 28,041 66,604 56 11,169 (6,726) 99 144 (33.60) (184.15) (35.31) (35.31) 232.69 119.33 (131.97) - 28,041 66,604 56 11,169 (6,726) 99 144 - 8,662 (137.50) - 8,662 - (36.50) - 985 985 (2,093) - 2,657,164 Peedin Exhibit 1, Schedule 2-1(f), Column (e). Peedin Exhibit 1, Schedule 2, Line 12, Column (c). Peedin Exhibit 1, Schedule 4, Line 3, Column (h). Peedin Exhibit 1, Schedule 2-1(f), Column (f). Line 12 minus (Sum of Line 3 thru Line 11). Line 45 divided by retention factor of 0.6273883 from Peedin Exhibit 1, Schedule 1-2, Line 14. 6/ 8/ 7/ 9/ - (90.59) - 1,672 1 672 $2,665 2/ 3/ 7/ 8/ 9/ 10/ 11/ 12/ 13/ $278 278 645,455 263,440 59,096 419,700 4,439 911 19,322 556,248 (91,414) 3,602 (53,094) 1,827,705 (1) (1) (98,306) 307,281 208,975 (98) (98) (2,093) 993 159,444 360,760 520 204 6 60% 6 63% 5/ $3,025,341 105,307 6,901 6,934 5,688 9,497 8,580 (139) 5,115 6,809 3,180,033 CWC Change (e) $3,022,676 105,307 6,901 6,934 5,688 9,497 8,580 (139) 5,115 6,809 3,177,368 (99,290) 307,281 207,991 $2,665 2,665 11/ - 2,658,157 10/ 159,444 362,432 521 876 $3,180,033 (99) - 12/ ($99) $179 7,878,961 $7,879,140 6.62% 6.63% Line 12 times 0.1800%. (Line 12 minus Line 22) times 0.140%. (Line 45 divided by (1 minus 37.0599%)) minus Line 45. Column (d) minus Column (a). Column (a) plus Column (c), unless footnoted otherwise. Line 50, Column (a) times 50 000% times 9 200%. Column (c) divided by 365 days times Column (b). 3/ Duke Energy Progress Docket No. E-2, Sub 1142 North Carolina Retail Operations CALCULATION OF WORKING CAPITAL FROM LEAD / LAG STUDY AFTER RATE INCREASE For the Test Year Ended December 31, 2016 (in Thousands) Line No. Item Peedin Exhibit 1 Schedule 2-1(g) Page 2 of 2 Iteration 2 With Increase (g) Increase (f) 1 2 3 4 5 6 7 8 9 10 11 12 Electric operating revenues: Rate revenues Sales for resale revenues Forfeited discounts Miscellaneous service revenues Rent revenues - additional facilities - lighting Rent revenues - distribution pole Rent revenues - other Other revenues - REPS and NC retail specific Other revenues - dis plt rel Other operating revenues Electric operating revenues 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Fuel used in elec gen Account 555 - Purchased Power Account 557 - Deferred Fuel Labor expense O&M regulatory fee - NC retail O&M regulatory expense - SC retail O&M regulatory expense - NC coal ash fee O&M regulatory expense - trans O&M A&G all plant related Other O&M expense Adjustment eliminate non-fuel riders A&G Adjustments to levelize or amortize costs Other adjustments to O&M expense Total O&M expenses - 27 28 29 Depreciation and amortization expense Adjustment to eliminate non-fuel riders Depreciation and amortization expense 30 31 32 33 34 35 36 37 645,455 263,440 59,096 419,700 4,439 911 19,322 556,248 (91,414) 3,602 (53,094) 1,827,705 - (0) (0) (0) - 520,143 (4,379) 515 764 - Other taxes - labor related Other taxes - property tax Other taxes - federal heavy vehicle use tax Other taxes - electric excise tax - SC Other taxes - privilege tax Other taxes - PUC license tax - SC Adjustment to eliminate non-fuel rider costs Total taxes other than income - 28,041 66,604 56 11,169 (6,726) 99 144 38 Interest on customer deposits - 8,662 39 40 41 Current state and federal income tax Deferred income taxes Total income taxes 5 5 42 Amortization of ITC - 43 Total electric operating expenses 5 44 45 46 Interest expense Income available for common equity Net operating income for return 47 Total requirement 48 49 50 Cumulative change in working capital Rate base under present rates Rate base after rate increase 51 52 Overall rate of return (L46 / L50) Target rate of return 109 8 117 $122 Column (g) minus Column (d). Column (d) plus Column (f), unless footnoted otherwise. Line 47. Line 50, Column (e) times 50 000% times 4 050%. Line 50, Column (e) times 50 000% times 9 200%. Column (f) divided by 365 days times Column (b). Column (j) minus Column (g). 14/ 8/ 7/ 9/ 16/ 14/ 5/ 20/ $3,025,462 105,307 6,901 6,934 5,688 9,497 8,580 (139) 5,115 6,809 3,180,154 22/ CWC Change (k) 24/ $0 - 16/ 645,455 263,440 59,096 419,700 4,439 911 19,322 556,248 (91,414) 3,602 (53,094) 1,827,705 - - 520,143 (4,379) 515 764 - - - 28,041 66,604 56 11,169 (6,726) 99 144 - - - 8,662 - (98,301) 307,281 208,980 - - (2,093) - - - (0) 2,658,162 14/ Iteration 3 With Increase (j) Increase (i) ($1) (1) 5/ $3,025,463 105,307 6,901 6,934 5,688 9,497 8,580 (139) 5,115 6,809 3,180,155 19/ $13 13 14/ 15/ 16/ 17/ 18/ 19/ 20/ $122 122 15/ CWC Change (h) 159,553 362,440 521 993 17/ 18/ $3,180,155 (27) (27) (1) (1) ($27) ($1) $165 7,878,961 $7,879,126 6 63% 6 63% 21/ 22/ 23/ 24/ 8/ 7/ 9/ (98,301) 307,281 208,980 - (2,093) - 2,658,162 20/ 20/ 159,552 362,440 521 992 - 22/ 23/ $3,180,154 $0 $165 7,878,961 $7,879,126 3/ Column (g) plus Column (i), unless footnoted otherwise. Line 50, Column (h) times 50 000% times 4 050%. Line 50, Column (h) times 50 000% times 9 200%. Column (i) divided by 365 days times Column (b). 6 62% 6 63% 3/ Duke Energy Progress Docket No. E-2, Sub 1142 North Carolina Retail Operations SUMMARY OF REGULATORY ASSETS & LIABILITIES For the Test Year Ended December 31, 2016 (in Thousands) Line No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 Item 182320 & 254100 - SFAS 109 Regulatory Asset & Liability 182204 & 182205 - Bruns Design Basis 182206 & 182208 - Rob Design Basis 254106 - Rotable Fleet Spare Regulatory Liability 182801 - Pension Post Retirement FAS 87 182312 - OPEB FAS 106 Medical 182318 - Other Reg Assets - Gen Acctg (FAS 158) 254689 - Regulatory Liability - NQ 182342 - PSNC Pipeline 254200 - Emission Allowance Proceeds 254022 - M&S Inventory Reserve 182479 & 182485 - NCEMPA Purchase Deferral (JAAR) 182381 - NC DSM/EE Deferral 182359 & 254250 - NC REPS Deferral 182323 & 182433 - Rate Case Cost - NC 254021 - Nuclear Fuel Last Core Reserve 254319 & 254700 - Regulatory Liability - DOE Refund 254017 & 254019 - Sale of Harris Land 254410 - ST SO2 EA Proceeds 254150 - Regulatory Liability NC Tax Rate Change 182484 - NC Regulatory Fee Deferral 186031 - Gas Pipeline Charges - ST 186195 - Deferred PEC Rate Case Expenses 186998 - Fukushima Pooled Inventory Opt 186120 - Misc Wip - Fp Dist Wids 186290 - Other Deferred Charges - Operations 186041 - Deferred DR - Gas Accounting 186181 - Deferred Debits - NC Retail Specific 186181 - Storm Deferral - NC Retail 186316 - Coal Ash Spend - NC Retail 183000 - Preliminary Survey Charges 252001, 252400, & 253008 - Customer Advances Total Regulatory Assets and Liabilities Peedin Exhibit 1 Schedule 2-2 NC Retail Adjusted Per Company 1/ (a) Public Staff Adjustments 2/ (b) $157,352 6,523 1,432 (1,738) 4,494 24,632 247,332 (54) 307 (1,178) (18,299) 844 (19,362) (4,248) (2,180) (2,500) (120,372) 751 313 2,437 1,177 295 89 2,585 20,000 54,315 189,052 1,779 (23,367) $522,411 1/ Based on review of Company Item 10 workpapers, and Company response to DR 39-1. 2/ Based on adjustments recommended by Public Staff. 3/ Column (a) plus Column (b). $0 120,372 (8,579) (189,052) ($77,259) NC Retail Adjusted Per Public Staff 3/ (c) $157,352 6,523 1,432 (1,738) 4,494 24,632 247,332 (54) 307 (1,178) (18,299) 844 (19,362) (4,248) (2,180) (2,500) 751 313 2,437 1,177 295 89 2,585 20,000 45,736 1,779 (23,367) $445,152 Duke Energy Progress Docket No. E-2, Sub 1142 North Carolina Retail Operations NET OPERATING INCOME FOR RETURN For the Test Year Ended December 31, 2016 (in Thousands) Line No. Item Peedin Exhibit 1 Schedule 3 Under Present Rates NC Retail Adjusted Public Staff Per Company 1/ Adjustments 2/ (a) (b) After Public Staff Adjustments 3/ (c) 1 2 3 4 Electric operating revenues: Sales of electricity Other revenues Electric operating revenues (Sum of L2 thru L3) 5 6 7 8 9 10 11 12 13 14 15 Electric operating expenses: Operations and maintenance: Fuel used in electric generation Purchased power Other operations and maintenance expenses Depreciation and amortization General taxes Interest on customer deposits Net income taxes Amortization of investment tax credit Total electric operating expenses (Sum of L7 thru L14) 635,925 322,537 1,039,245 564,903 99,358 8,662 113,542 (2,093) 2,782,079 9,530 (179,542) (49,140) (214) 94,410 (124,956) 645,455 322,537 859,703 515,763 99,144 8,662 207,952 (2,093) 2,657,123 16 Net operating income for return (L4 minus L15) $359,151 $161,094 $520,245 1/ 2/ 3/ 4/ 5/ 6/ 7/ $3,093,407 47,823 $3,141,230 $36,138 $36,138 $3,129,545 47,823 $3,177,368 After Public Staff Recommended Increase Rate After Rate Increase Increase (d) (e) $2,783 4/ $2,783 9 5/ 1,027 6/ 1,036 $1,747 $3,132,328 47,823 $3,180,151 645,455 322,537 859,712 515,763 99,144 8,662 208,979 (2,093) 2,658,159 $521,992 Based on updated Bateman Exhibit 1 reflecting supplemental adjustments, including correction to cash working capital, provided by Company. Peedin Exhibit 1, Schedule 3-1, Column (z). Column (a) plus Column (b). Peedin Exhibit 1, Schedule 5, Line 6. Line 4 times (1 minus retention factor after uncollectibles and regulatory fee of 0.9968025 from Peedin Exh bit 1, Schedule 1-2, Line 10.) Line 4 minus Line 9 minus increase in debt expense from Peedin Exh bit 1, Schedule 5, Line 3, Column (a), times composite income tax rate of 37.0599%. Column (c) plus Column (d). 7/ Duke Energy Progress Docket No. E-2, Sub 1142 North Carolina Retail Operations SUMMARY OF PUBLIC STAFF NET OPERATING INCOME ADJUSTMENTS For the Test Year Ended December 31, 2016 (in Thousands) Line No. Peedin Exhibit 1 Schedule 3-1 Page 1 of 4 Update Plant to 8/31/2017 (a) Item 1 2 3 4 Electric operating revenues: Sales of electricity Other revenues Electric operating revenues (Sum of L2 thru L3) 5 6 7 8 9 10 11 12 13 14 15 Electric operating expenses: Operations and maintenance: Fuel used in electric generation Purchased power Other operations and maintenance expenses Depreciation and amortization General taxes Interest on customer deposits Net income taxes Amortization of investment tax credit Total electric operating expenses (Sum of L7 thru L14) 16 Net operating income for return (L4 minus L15) 17 Calculated revenue requirement impact 9/ 1/ 2/ 3/ 4/ 5/ 6/ 7/ 8/ 9/ Update Customer Growth to 8/31/2017 (b) Adjust Distribution Vegetation Management (c) Adjust Allocations from DEBS to DEP (e) Adjust Harris COLA (d) $0 - $34,073 3/ 34,073 $0 - $0 - $0 - 1,171 1/ (201) 1/ (359) 2/ 611 9,530 3/ 2,694 3/ 8,097 2/ 20,321 (4,060) 4/ 1,505 2/ (2,555) (3,399) 5/ 1,260 2/ (2,139) (503) 6/ 186 2/ (317) Adjust for Lost Industrial Revenues due to Hurricane Matthew (f) $2,065 7/ 2,065 765 2/ 765 Remove EDIT Refund for Treatment as a Rider (g) $0 - 30,093 8/ (11,152) 2/ 18,941 (611) 13,752 2,555 2,139 317 1,300 (18,941) $974 ($21,919) ($4,073) ($3,409) ($505) ($2,072) $30,190 Peedin Exhibit 1, Schedule 3-1(a). Line 4 minus Sum of Lines 7 through 12 times composite income tax rate of 37.0599%. Peedin Exhibit 1, Schedule 3-1(b). Peedin Exhibit 1, Schedule 3-1(c), Line 14. Peedin Exhibit 1, Schedule 3-1(d), Line 5. Peedin Exhibit 1, Schedule 3-1(e), Line 3, Column . Peedin Exhibit 1, Schedule 3-1(f). Peedin Exhibit 1, Schedule 3-1(g), Line 1. Line 16 divided by expense retention factor of 0.6273883 from Peedin Exhibit 1, Schedule 1-2, Line 14. Duke Energy Progress Docket No. E-2, Sub 1142 North Carolina Retail Operations SUMMARY OF PUBLIC STAFF NET OPERATING INCOME ADJUSTMENTS For the Test Year Ended December 31, 2016 (in Thousands) Line No. Peedin Exhibit 1 Schedule 3-1 Page 2 of 4 Remove Customer Connect Expenses (h) Item 1 2 3 4 Electric operating revenues: Sales of electricity Other revenues Electric operating revenues (Sum of L2 thru L3) 5 6 7 8 9 10 11 12 13 14 15 Electric operating expenses: Operations and maintenance: Fuel used in electric generation Purchased power Other operations and maintenance expenses Depreciation and amortization General taxes Interest on customer deposits Net income taxes Amortization of investment tax credit Total electric operating expenses (Sum of L7 thru L14) 16 Net operating income for return (L4 minus L15) 17 Calculated revenue requirement impact 9/ Remove Duke Piedmont CTA (i) Adjust Depreciation Rates (j) Adjust Incentives (k) $0 - $0 - $0 - $0 - (7,947) 10/ 2,945 2/ (5,002) (3,818) 11/ 1,415 2/ (2,403) (33,690) 12/ 12,485 2/ (21,205) (17,903) 13/ 6,635 2/ (11,268) 5,002 2,403 21,205 11,268 ($7,973) ($3,831) ($33,799) ($17,960) 10/ 11/ 12/ 13/ 14/ 15/ 16/ Remove Ongoing Environmental Costs (l) $0 - (129,115) 14/ 47,850 2/ (81,265) 81,265 ($129,529) Peedin Exhibit 1, Schedule 3-1(h). Peedin Exhibit 1, Schedule 3-1(i). Peedin Exhibit 1, Schedule 3-1(j), Line 9, Column (c). Peedin Exhibit 1, Schedule 3-1(k). Based on the recommendation of Public Staff witness Maness. Peedin Exhibit 1, Schedule 3-1(l), Line 10. Peedin Exhibit 1, Schedule 3-1(m). Adjust Executive Compensation (m) $0 - (238) 15/ 88 2/ (150) 150 ($239) Adjust Aviation Expenses (n) $0 - (1,068) 16/ (13) 16/ 401 2/ (680) 680 ($1,084) Duke Energy Progress Docket No. E-2, Sub 1142 North Carolina Retail Operations SUMMARY OF PUBLIC STAFF NET OPERATING INCOME ADJUSTMENTS For the Test Year Ended December 31, 2016 (in Thousands) Line No. Peedin Exhibit 1 Schedule 3-1 Page 3 of 4 Adjust Deferred Environmental Costs (o) Item 1 2 3 4 Electric operating revenues: Sales of electricity Other revenues Electric operating revenues (Sum of L2 thru L3) 5 6 7 8 9 10 11 12 13 14 15 Electric operating expenses: Operations and maintenance: Fuel used in electric generation Purchased power Other operations and maintenance expenses Depreciation and amortization General taxes Interest on customer deposits Net income taxes Amortization of investment tax credit Total electric operating expenses (Sum of L7 thru L14) 16 Net operating income for return (L4 minus L15) 17 Calculated revenue requirement impact $0 - $0 - (42,015) 14/ 15,571 2/ (26,444) 26,444 9/ Adjust Outside Services (p) (133) 17/ 49 2/ (84) 84 ($42,149) 17/ 18/ 19/ 20/ 21/ ($134) Adjust Storm Costs (q) Adjust Sponsorships & Donations (r) $0 - (20,549) 18/ 7,615 2/ (12,934) $0 - (256) 19/ 95 2/ (161) Adjust Lobbying Expense (s) $0 - (599) 20/ 222 2/ (377) 12,934 161 377 ($20,616) ($257) ($601) Peedin Exhibit 1, Schedule 3-1(n), Line 6. Peedin Exhibit 1, Schedule 3-1(o), Line 13. Peedin Exhibit 1, Schedule 3-1(p), Line 3. Peedin Exhibit 1, Schedule 3-1(q), Line 6. Peedin Exhibit 1, Schedule 3-1(r), Line 12. Adjust Board of Directors Expense (t) $0 - (1,390) 21/ 515 2/ (875) 875 ($1,395) Duke Energy Progress Docket No. E-2, Sub 1142 North Carolina Retail Operations SUMMARY OF PUBLIC STAFF NET OPERATING INCOME ADJUSTMENTS For the Test Year Ended December 31, 2016 (in Thousands) Line No. Peedin Exhibit 1 Schedule 3-1 Page 4 of 4 Adjust EOL Nuclear M&S Reserve Amortization (u) Item 1 2 3 4 Electric operating revenues: Sales of electricity Other revenues Electric operating revenues (Sum of L2 thru L3) 5 6 7 8 9 10 11 12 13 14 15 Electric operating expenses: Operations and maintenance: Fuel used in electric generation Purchased power Other operations and maintenance expenses Depreciation and amortization General taxes Interest on customer deposits Net income taxes Amortization of investment tax credit Total electric operating expenses (Sum of L7 thru L14) 16 Net operating income for return (L4 minus L15) 17 Calculated revenue requirement impact Adjust Sutton CT Blackstart Plant Cost (v) $0 - $0 - (355) 22/ 132 2/ (223) 9/ (172) 23/ 64 2/ (108) Adjust Mayo ZLD Plant Cost (w) $0 - (773) 24/ 286 2/ (487) Adjustment to Inflation Adjustment (x) $0 - 5,344 25/ (1,980) 2/ 3,364 Interest Synchronization Adjustment (y) $0 - (280) 26/ (280) Total NOI Adjustments 27/ (z) $36,138 36,138 9,530 (179,542) (49,140) (214) 94,410 (124,956) 223 108 487 (3,364) 280 161,094 ($355) ($172) ($776) $5,362 ($446) ($256,769) 22/ 23/ 24/ 25/ 26/ 27/ Peedin Exhibit 1, Schedule 3-1(s), Line 13, Column (e). Peedin Exhibit 1, Schedule 2-1(d), Line 6. Peedin Exhibit 1, Schedule 2-1(e), Line 6. Peedin Exhibit 1, Schedule 3-1(t), Line 11. Peedin Exhibit 1, Schedule 3-1(u), Line 8. Sum of Column (a) through Column (y). Duke Energy Progress Docket No. E-2, Sub 1142 North Carolina Retail Operations ADJUSTMENT TO DEPRECIATION EXPENSE AND PROPERTY TAXES FOR PLANT UPDATE For the Test Year Ended December 31, 2016 (in Thousands) Line No. Item 1 2 3 4 Depreciation expense Depreciation expense on increase in plant per Public Staff Company adjustment Public Staff adjustment to depreciation expense for update of plant (L2 - L3) 5 6 7 8 9 10 11 12 General taxes Update to plant per Public Staff Less: adjustment to intangible plant Adjustment to plant excluding intangible plant (L6 - L7) Property tax rate per $1000 Impact to property taxes of Public Staff update (L8 x L9) Company adjustment Public Staff adjustment to property taxes (L10 - L11) 1/ 2/ 3/ 4/ 5/ 6/ Peedin Exhibit 1, Schedule 3-1(a)(1), Line 10, Column (e). Bateman Supplemental Exhibit 1, Page 40, NC-1101 Supplemental, Line 62. Peedin Exhibit 1, Schedule 2-1(a)(1), Line 11, Column (g). Peedin Exhibit 1, Schedule 2-1(a)(1), Line 10, Column (g). Bateman Supplemental Exhibit 1, Page 40, NC-1101 Supplemental, Line 68. Bateman Supplemental Exhibit 1, Page 40, NC-1101 Supplemental, Line 74. Peedin Exhibit 1 Schedule 3-1(a) Amount $28,492 1/ 27,321 2/ $1,171 $618,344 69,823 548,521 0.003641 1,997 2,198 ($201) 3/ 4/ 5/ 6/ Duke Energy Progress Docket No. E-2, Sub 1142 North Carolina Retail Operations CALCULATION OF DEPRECIATION EXPENSE ON PLANT UPDATE For the Test Year Ended December 31, 2016 (in Thousands) Line No. 1 2 3 4 5 6 7 8 9 10 1/ 2/ 3/ 4/ 5/ 6/ Item Steam plant Hydro plant Other production plant Nuclear plant Total production plant Transmission plant Distribution plant General plant Intangible plant Total Peedin Exhibit 1 Schedule 3-1(a)(1) Increase in Plant in Service (a) $29,456 8,235 81,138 310,833 429,662 107,193 242,611 20,274 105,055 $904,795 1/ Depreciation Rate 2/ (b) 3.72% 3.16% 4.44% 2.73% 1.91% 2.17% 4.16% 20.00% 3/ Increase in Depreciation 4/ (c) $1,096 260 3,603 8,486 13,445 2,047 5,265 843 21,011 $42,611 Peedin Exhibit 1, Schedule 2-1(a)(1), Column (e). Based on recommendation of Public Staff witness McCullar, unless footnoted otherwise. Bateman Supplemental Exhibit 1, Page 39, NC-1101 Supplemental, Line 9. Column (a) times Column (b). Bateman Supplemental Exhibit 1, Page 40, NC-1101 Supplemental, Lines 57 through 61. Column (c) times Column (d). NC Retail Percentage 5/ (d) 60.6008% 59.1442% 86.6059% 72.1559% 66.4632% NC Retail Amount (e) $8,148 1,211 4,560 608 13,965 $28,492 6/ Duke Energy Progress Docket No. E-2, Sub 1142 North Carolina Retail Operations ADJUSTMENT TO UPDATE CUSTOMER GROWTH TO AUGUST 31, 2017 For the Test Year Ended December 31, 2016 (in Thousands) Line No. Peedin Exhibit 1 Schedule 3-1(b) Item 1 Revenues Adjust revenues to August 31, 2017 2 Fuel and Fuel Related Expense Adjust fuel expense for change in kwh 3 4 5 Other O&M Expense Public Staff adjustment to kwh sales Energy-related non-fuel variable O&M expense per kwh Adjustment to energy-related non-fuel variable O&M expense (L3 x L4 / 1000) 6 7 8 Public Staff change in bills Annual customer-related variable O&M expense per bill Adjustment to customer-related variable O&M expense (L6 x L7) 9 10 11 12 Adjust variable non-fuel O&M expense (L5 + L8) Adjust uncollectibles for increase in revenues Adjust regulatory fee for increase in revenues, net of uncollectibles Total adjustment to other O&M expenses (L9 + L10 + L11) 1/ 2/ 3/ 4/ 5/ 6/ 7/ 8/ Peedin Exhibit 1, Schedule 3-1(b)(1), Line 18, Column (c). Peedin Exhibit 1, Schedule 3-1(b)(2), Line 18, Column (e). Peedin Exhibit 1, Schedule 3-1(b)(1), Line 18, Column (a). Peedin Exhibit 1, Schedule 3-1(b)(3), Line 5. Based on customer growth adjustment recommended by Public Staff witness Saillor. Peedin Exhibit 1, Schedule 3-1(b)(3), Line 16. Line 1 times uncollectibles rate of 0.18%. (Line 1 minus Line 10) times regulatory fee rate of 0.14%. Amount $34,073 1/ $9,530 2/ 560,397,756 3/ 0.00426 4/ $2,387 142,314 5/ 0.00139 6/ $198 $2,585 61 7/ 48 8/ $2,694 Duke Energy Progress Docket No. E-2, Sub 1142 North Carolina Retail Operations ADJUSTMENT TO UPDATE REVENUES TO AUGUST 31, 2017 For the Test Year Ended December 31, 2016 (in Thousands) Line No. Item Peedin Exhibit 1 Schedule 3-1(b)(1) NC KWH Per Public Staff 1/ (a) Cents per KWH (b) 2/ 1 2 3 Residential excluding TOU Residential TOU Total NC Residential (L1 + L2) 4 5 6 Small General Service excluding Constant Load Rate Small General Service Constant Load Rate Total Small General Service (L4 + L5) 7 8 9 Medium General Service excluding Time of Use Small General Service Time of Use Total Medium General Service (L7 + L8) 51,713,964 64,837,767 116,551,731 8.61 1/ 6.66 10 11 12 13 Large General Service Excluding Time of Use and Real Time Pricing Large General Service Time of Use Large General Service Real Time Pricing Total Large General Service (L10 + L11 + L12) 68,475,987 85,030,621 55,683,770 209,190,378 7.68 6.39 5.02 14 15 16 17 Sports Field Lighting Service Street Lighting Service Traffic Signal Service Total Lighting and Traffic Signal Service (L14 + L15 + L16) 18 19 20 Total NC Retail (L3 + L6 + L9 + L13 + L17) Adjustment to revenues for customer growth per Company Public Staff adjustment to revenues for customer growth (L18 - L19) 1/ 2/ 3/ 4/ Amounts per Public Staff witness Saillor. NCUC Form E-1, Item No. 10, NC-0402, Column (b). (Column (c) times Column (d)) divided by 100,000. NCUC Form E-1, Item No. 10, NC-0402, Line 8, Column (c). Adjustment (c) 201,793,566 4,427,090 206,220,656 9.33 14.19 $18,827 628 19,455 26,434,163 858,515 27,292,678 10.03 10.24 2,651 88 2,739 (57,317) 1,611,463 (411,833) 1,142,313 560,397,756 15.54 26.15 7.99 3/ 4,453 4,318 8,771 5,259 5,433 2,795 13,487 (9) 421 (33) 379 44,831 10,758 4/ $34,073 Duke Energy Progress Docket No. E-2, Sub 1142 North Carolina Retail Operations CALCULATION OF CUSTOMER GROWTH IMPACT TO FUEL For the Test Year Ended December 31, 2016 (in Thousands) Line No. Item Peedin Exhibit 1 Schedule 3-1(b)(2) Approved Fuel & Fuel Related Costs in Cents 3/ per KWH 4/ (d) NC KWH Per Company 2/ (b) Public Staff NC KWH Adjustment (c) 201,793,566 4,427,090 206,220,656 70,979,693 1,557,203 72,536,896 130,813,873 2,869,887 133,683,760 1.993 1.993 $2,607 57 2,664 26,434,163 858,515 27,292,678 8,262,707 268,352 8,531,059 18,171,456 590,163 18,761,619 2.088 2.088 379 12 391 NC KWH Per Public Staff 1/ (a) Public Staff Fuel Expense Adjustment 5/ (e) 1 2 3 Residential excluding TOU Residential TOU Total NC Residential (L1 + L2) 4 5 6 Small General Service excluding Constant Load Rate Small General Service Constant Load Rate Total Small General Service (L4 + L5) 7 8 9 Medium General Service excluding Time of Use Small General Service Time of Use Total Medium General Service (L7 + L8) 51,713,964 64,837,767 116,551,731 13,327,581 16,709,811 30,037,392 38,386,383 48,127,956 86,514,339 2.431 2.431 933 1,170 2,103 10 11 12 13 Large General Service Excluding Time of Use and Real Time Pricing Large General Service Time of Use Large General Service Real Time Pricing Total Large General Service (L10 + L11 + L12) 68,475,987 85,030,621 55,683,770 209,190,378 4,958,155 6,156,830 4,031,906 15,146,891 63,517,832 78,873,791 51,651,864 194,043,487 2.253 2.253 2.253 1,431 1,777 1,164 4,372 14 15 16 17 Sports Field Lighting Service Street Lighting Service Traffic Signal Service Total Lighting and Traffic Signal Service (L14 + L15 + L16) 18 Total NC Retail (L3 + L6 + L9 + L13 + L17) 1/ 2/ 3/ 4/ 5/ Peedin Exhibit 1, Schedule 3-1(b)(1), Column (a). NCUC Form E-1, Item No. 10, NC-0402, Column (a). Column (a) minus Column (b). NCUC Form E-1, Item No. 10, NC-0401, Line 4. (Column (a) times Column (b)) divided by 100,000. (57,317) 1,611,463 (411,833) 1,142,313 560,397,756 (26,925) 543,832 (127,003) 389,904 126,642,142 (30,392) 1,067,631 (284,830) 752,409 433,755,614 0.596 0.596 2.088 0 6 (6) $9,530 Duke Energy Progress Docket No. E-2, Sub 1142 North Carolina Retail Operations CALCULATION OF VARIABLE NON-FUEL O&M EXPENSE PER KWH AND PER BILL For the Test Year Ended December 31, 2016 (in Thousands) Line No. Item 1 2 3 4 5 Energy-Related Variable Non-Fuel O&M Expense Energy-related production variable O&M expense - total system Remove labor expense adjusted elsewhere Energy-related variable non-fuel O&M expense, excluding labor - total system (L1 + L2) Actual test year MWH sales - total system Energy-related non-fuel O&M cost per kwh (L3 / L4) 6 7 8 9 10 11 12 13 14 15 16 Customer-Related Variable O&M Expense Customer accounting expense - NC retail Customer service and information expense - NC retail Sales expense - NC retail Remove costs adjusted elsewhere: Uncollect bles expense - NC retail Customer accounting labor - NC retail Customer service & information labor - NC retail Sales labor - NC retail Customer related O&M expense excluding labor - NC retail (Sum of L6 thru L13) Test year bills - NC retail Annual customer-related variable O&M expense per bill - NC retail (L14 / L15) 1/ 2/ 3/ 4/ NCUC Form E-1, Item NCUC Form E-1, Item NCUC Form E-1, Item NCUC Form E-1, Item No. 45A, COS Detail - Oper Expense. No. 45A, COS Detail - Labor. No. 45F. No. 44(c), Page 11, total of January thru December bills. Peedin Exhibit 1 Schedule 3-1(b)(3) Amount $437,629 1/ (174,472) 2/ 263,157 61,819,239 3/ 0.00426 $42,089 1/ 3,988 1/ 5,614 1/ (6,206) (16,513) (2,386) (3,382) 23,204 16,696,066 0.00139 1/ 2/ 2/ 2/ 4/ Duke Energy Progress Docket No. E-2, Sub 1142 North Carolina Retail Operations ADJUSTMENT TO DISTRIBUTION VEGETATION MANAGEMENT For the Test Year Ended December 31, 2016 (in Thousands) Line No. Item 1 2 3 4 5 Number of trim miles per year: Urban Miles Non Urban Miles Total number of trim miles (L2 + L3) Cost per mile 6 7 8 9 10 Production cost (L4 x L5 / 1000) Demand cost Herbicide cost Hazard Tree Program cost Total distribution Vegetation Management (VM) Public Staff (Sum of L6 thru L9) 11 Test year distribution VM per Company 12 13 Public Staff adjustment to VM (L10 - L11) NC retail percentage 14 Public Staff adjustment to distribution VM (L12 x L13) 1/ 2/ 3/ 4/ Peedin Exhibit 1 Schedule 3-1(c) Total Miles (a) 1,095 1/ 32,372 1/ Target Cycle (In Years) (b) Amount (c) 3 1/ 7 1/ 365 2/ 4,625 2/ 4,990 6,019 3/ $30,035 1,842 3/ 2,004 3/ 3,439 3/ 37,320 42,008 3/ (4,688) 86.6059% 4/ From Company Response to Public Staff Data Request No. 62, Item 6. Column (a) divided by Column (b). Actual cost for 2016 test year from Company response to Public Staff Data Request No. 62, Item 5. COS allocation factor for distribution plant. ($4,060) Duke Energy Progress Docket No. E-2, Sub 1142 North Carolina Retail Operations ADJUSTMENT TO HARRIS COLA AMORTIZATION For the Test Year Ended December 31, 2016 (in Thousands) Line No. 1 2 3 4 5 Peedin Exhibit 1 Schedule 3-1(d) Item Balance of Harris COLA - NC retail Amortization period in years Annual amortization of deferral balance (L1 / L2) Amount per Company Adjustment to Harris COLA annual amortization (L3 - L4) 1/ NCUC Form E-1, Item No. 10, NC-1702, Line 3. 2/ Based on Company response to Public Staff Data Request No. 54, Item 7 and Commission Order issued on September 16, 2013 in Docket No. E-2, Sub 1035. 3/ NCUC Form E-1, Item No. 10, NC-1701, Line 4. Amount $45,327 1/ 8 2/ 5,666 9,065 3/ ($3,399) Duke Energy Progress Docket No. E-2, Sub 1142 North Carolina Retail Operations ADJUSTMENT TO ALLOCATIONS FROM DEBS For the Test Year Ended December 31, 2016 (in Thousands) Line No. 1 2 3 Item Test Year Allocations from DEBS to DEP Updated Allocations from DEBS to DEP Adjustment to expense for allocations from DEBS (L2 - L1) 1/ From Company Response to Public Staff Data Request No. 15, Item 7. 2/ From Company Response to Public Staff Data Request No. 142, Item 3. Peedin Exhibit 1 Schedule 3-1(e) Amount $239,742 1/ 239,239 2/ ($503) Duke Energy Progress Docket No. E-2, Sub 1142 North Carolina Retail Operations ADJUSTMENT FOR IMPACT OF HURRICANE MATTHEW ON INDUSTRIAL SALES For the Test Year Ended December 31, 2016 (in Thousands) Line No. 1 Item Revenues Lost industrial revenues due to Hurricane Matthew 1/ Based on recommendation of Public Staff witness Williamson. Peedin Exhibit 1 Schedule 3-1(f) Amount $2,065 1/ Duke Energy Progress Docket No. E-2, Sub 1142 North Carolina Retail Operations ADJUSTMENT TO REMOVE EDIT LIABILITY FROM BASE RATES For the Test Year Ended December 31, 2016 (in Thousands) Line No. Item Peedin Exhibit 1 Schedule 3-1(g) Amount 1 Depreciation and amortization expense Remove EDIT liability amortization included in base rates by Company 2 Regulatory assets and liabilities Remove unamortized balance included in rate base by Company $120,372 2/ 3 Accumulated deferred income taxes (ADIT) Remove ADIT associated with unamortized balance ($44,610) 3/ 1/ 2/ 3/ NCUC Form E-1, Item No. 10, NC-3200, Line 11. Peedin Exhibit 1, Schedule 2-2, Line 20, Column (a). Negative of Line 2 times composite income tax rate of 37.0599%. $30,093 1/ Duke Energy Progress Docket No. E-2, Sub 1142 North Carolina Retail Operations ADJUSTMENT TO CUSTOMER CONNECT EXPENSES For the Test Year Ended December 31, 2016 (in Thousands) Line No. 1 Item Remove 2018-2020 forecasted Customer Connect costs 1/ Bateman Supplemental Exhibit 1, Page 83, NC-3001, Line 26. Peedin Exhibit 1 Schedule 3-1(h) Amount ($7,947) 1/ Duke Energy Progress Docket No. E-2, Sub 1142 North Carolina Retail Operations ADJUSTMENT TO DUKE PIEDMONT COSTS TO ACHIEVE For the Test Year Ended December 31, 2016 (in Thousands) Line No. 1 2 3 Item Remove Duke Piedmont CTAs from O&M expenses NC retail allocation percentage Adjustment to remove NC retail portion of Duke Piedmont CTAs (L1 x L2) 1/ From Company Response to Public Staff Data Request No. 139, Item 9. 2/ COS allocation factor DPALL (production demand). Peedin Exhibit 1 Schedule 3-1(i) Amount ($6,301) 1/ 60.6008% 2/ (3,818) Duke Energy Progress Docket No. E-2, Sub 1142 North Carolina Retail Operations ADJUSTMENT FOR CHANGE IN DEPRECIATION RATES For the Test Year Ended December 31, 2016 (in Thousands) Line No. Item 1 2 3 4 5 6 7 8 9 Change in depreciation and amortization per Public Staff Production Transmission Distribution Distribution COR adjustment - directly assigned General General Plant Amortization Public Staff adjustment to depreciation and amortization expense Adjustment per Company Adjustment to depreciation and amortization expense (L7 - L8) 10 Adjustment to accumulated depreciation (-L9) 1/ 2/ 3/ 4/ Based on recommendation of Public Staff witness McCullar. Bateman Supplemental Exhibit 1, Page 30, NC-1001. Column (a) times Column (b). Bateman Supplemental Exhibit 1, Page 30, NC-1001, Line 8. Peedin Exhibit 1 Schedule 3-1(j) Total System (a) $132,281 3,934 (84,834) 727 (1,948) 17,173 $67,333 1/ NC Retail Percentage 2/ (b) 60.6008% 59.1442% 86.6059% 100.0000% 72.1559% 72.1559% NC Retail Amount (c) $80,163 2,327 (73,471) 727 (1,406) 12,391 20,731 54,421 ($33,690) $33,690 3/ 3/ 3/ 3/ 3/ 3/ 4/ DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 North Carolina Retail Operations ADJUSTMENT TO INCENTIVES For the Test Year Ended December 31, 2016 (in Thousands) Peedin Exhibit 1 Schedule 3-1(k) Line No. Item 1 2 3 4 5 6 7 8 9 Short Term Incentive Plan (STIP) Total Company STIP pay accrued expense associated with earnings per share (EPS) Total Company STIP accrual Percentage of STIP related to EPS STIP at target level associated with O&M expense per Company Adjustment to remove STIP related to EPS outcomes - total system (-L3 x L4) NC retail percentage Adjustment to remove STIP related to EPS outcomes - NC retail (L5 x L6) Executive STIP already removed in executive compensation adjustment Adjustment to STIP (L7 + L8) 10 11 12 Long Term Incentive Plan (LTIP) Performance shares for EPS at target Performance shares for Total Shareholder Return (TSR) at target LTIP at target associated with EPS and TSR (L10 + L11) 13 14 15 16 17 Adjustment to remove LTIP associated with EPS and TSR - total system (-L12) NC retail percentage Adjustment to remove LTIP associated with EPS and TSR - NC retail (L13 x L14) Executive LTIP already removed in executive compensation adjustment Adjustment to LTIP (L15 + L16) (5,716) 65.3245% 3/ (3,734) 397 4/ ($3,337) 18 Total adjustment to incentive pay (L9 + L17) ($17,903) 1/ 2/ 3/ 4/ 5/ From Company Response to Public Staff Data Request No. 141, Item 1. NCUC Form E-1, Item No. 10, NC-2210, Line 6. NCUC Form E-1, Item No. 10, NC-2201, Line 43. Based on executive compensation adjustment. From Company Supplemental Response to Public Staff Data Request No. 141, Item 13. Amount $121,273 363,807 33.33% 67,527 (22,507) 65.3245% (14,703) 137 ($14,566) 1/ 1/ 2/ 3/ 4/ $1,154 5/ 4,562 5/ 5,716 DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 North Carolina Retail Operations ADJUSTMENT TO EXECUTIVE COMPENSATION For the Test Year Ended December 31, 2016 (in Thousands) Line No. Item Executive compensation for top 4 executives per Company Inclusion of additional executive in adjustment Inclusion of executive benefits in adjustment Executive compensation subject to exclusion adjustment per Public Staff NC retail percentage NC retail portion of executive compensation subject exclusion adjustment (L4 x L5) Exclusion percentage Public Staff adjustment to exclude executive compensation (L6 x L7) Adjustment per Company Adjustment to remove additional executive compensation (L8 x L9) 1 2 3 4 5 6 7 8 9 10 1/ 2/ 3/ 4/ 5/ 6/ NCUC Form E-1, Item No. 10, NC-2901, Line 5. From Company response to Public Staff Data Request No. 136, Item 1. From Company response to Public Staff Data Request No. 106, Item 2. NCUC Form E-1, Item No. 10, NC-2901, Line 8. NCUC Form E-1, Item No. 10, NC-2901, Line 10. NCUC Form E-1, Item No. 10, NC-2901, Line 11. Peedin Exhibit 1 Schedule 3-1(l) Amount $4,976 481 247 5,704 65.3245% 3,726 50.00% (1,863) (1,625) ($238) 1/ 2/ 3/ 4/ 5/ 6/ DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 North Carolina Retail Operations ADJUSTMENT TO AVIATION EXPENSES For the Test Year Ended December 31, 2016 (in Thousands) Line No. Item Peedin Exhibit 1 Schedule 3-1(m) Amount Wages, benefits, materials, etc. 1 2 3 4 5 6 7 8 9 Corporate aviation O&M and depreciation expense Percentage to be excluded per Public Staff Corporate aviation expenses to be excluded per Public Staff (L1 x L2) Specific charter flights to be excluded Total corporate aviation expenses to be excluded per Public Staff (L3 + L4) Corporate aviation expenses to be excluded per Company Additional aviation O&M expenses to be excluded (L5 - L6) NC retail percentage Public Staff adjustment to aviation O&M expenses (-L7 x L8) 10 11 12 13 14 15 16 Corporate aviation general taxes Percentage to be excluded per Public Staff Corporate aviation general taxes to be excluded per Public Staff (L10 x L11) Corporate aviation general taxes to be excluded per Company Additional aviation general taxes to be excluded (L12 - L13) NC retail percentage Public Staff adjustment to aviation general taxes (-L14 x L15) $4,630 75.55% 1/ 2/ 3,498 3,498 1,863 3/ 1,635 65.3245% 4/ ($1,068) General taxes 1/ 2/ 3/ 4/ 5/ 6/ $58 75.55% 5/ 2/ 44 23 6/ 21 65.3245% 4/ ($13) NCUC Form E-1, Item No. 10, NC-2602, Line 19. Calculated by Public Staff based on Company response to Public Staff Data Request No. 9-4, 60-9, and 101-1. NCUC Form E-1, Item No. 10, NC-2602, Line 22. Allocation Factor - Labor from NCUC Form E-1, Item No. 10, NC-2601, Line 2. NCUC Form E-1, Item No. 10, NC-2602, Line 1. NCUC Form E-1, Item No. 10, NC-2602, Line 3. DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 North Carolina Retail Operations ADJUSTMENT TO OUTSIDE SERVICES For the Test Year Ended December 31, 2016 (in Thousands) Line No. Item Peedin Exhibit 1 Schedule 3-1(n) Amount 1 Remove items related to coal ash litigation ($88) 1/ 2 Remove items identified that Company has agreed to remove (89) 1/ 3 Remove additional items identified by Public Staff that should be removed (43) 1/ 4 Total Public Staff adjustment to outside services (L1 + L2 + L3) 5 NC retail percentage 6 Public Staff adjustment to outside services - NC retail (L4 x L5) (220) 60.6008% 2/ ($133) 1/ Based on information provided by Company in response to Public Staff Data Request No. 75, Items 1 and 2 and advice of legal counsel. 2/ COS allocation factor DPALL (production demand). DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 North Carolina Retail Operations ADJUSTMENT TO STORM EXPENSE For the Test Year Ended December 31, 2016 (in Thousands) Line No. Item 1 2 3 4 5 6 7 8 9 10 11 Normalized storm expense NC retail amount of storm costs considered normal for 2016 NC retail percentage 2016 storm costs to be included in calculation of normalized level (L1 / L2) 2007 through 2015 costs adjusted for inflation Total storm costs for ten years adjusted for inflation (L3 + L4) Number of years Normalized level of storm costs - total system (L5 x L6) NC retail percentage Normalized level of storm costs per Public Staff (L7 x L8) Normalized level of storm costs per Company Public Staff adjustment to normalized level of storm costs (L9 - L10) 12 Amortization expense for 2016 abnormal storm costs Public Staff adjustment to annual amortization of 2016 abnormal costs 13 Total Public Staff adjustment to storm expense (L11 + L12) 1/ 2/ 3/ 4/ 5/ Peedin Exhibit 1 Schedule 3-1(o) Amount $27,400 83.4723% 32,825 99,168 131,993 10 13,199 83.4723% 11,018 9,685 1,333 1/ 2/ 3/ 2/ 4/ (21,882) 5/ ($20,549) Peedin Exhibit 1, Schedule 2-1(b), Line 2. Bateman Supplemental Exhibit 1, Page 60, NC-2001(C), Line 15, NC Retail Percentage. Bateman Supplemental Exhibit 1, Page 60, NC-2001(C), Inflated Average Amount, Sum of Lines 1 through 9. Bateman Supplemental Exhibit 1, Page 60, NC-2001(C), Line 15, Total NC Retail amount. Peedin Exhibit 1, Schedule 2-1(b), Line 14. DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 North Carolina Retail Operations ADJUSTMENT TO SPONSORSHIPS AND DONATIONS For the Test Year Ended December 31, 2016 (in Thousands) Line No. Item 1 Remove sponsorships and donations related to chambers of commerce 2 NC retail percentage 3 Public Staff adjustment to remove sponsorships and donations - NC retail (L1 x L2) 1/ From Company response to Public Staff Data Request No. 11, Item 3. 2/ COS allocation factor DPALL (production demand). Peedin Exhibit 1 Schedule 3-1(p) Amount ($423) 60.6008% 2/ ($256) DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 North Carolina Retail Operations ADJUSTMENT TO LOBBYING EXPENSE For the Test Year Ended December 31, 2016 (in Thousands) Line No. Item Peedin Exhibit 1 Schedule 3-1(q) Amount 1 Remove Stakeholder Engagement O&M charges related to lobbying ($217) 1/ 2 Remove State Government Affairs O&M charges related to lobbying (252) 1/ 3 Remove Federal Affairs O&M charges related to lobbying (448) 1/ 4 Total lobbying costs to be removed from O&M expense (L1 + L2 + L3) (917) 5 NC retail percentage 6 Public Staff adjustment to remove lobbying expense (L4 x L5) 1/ Based on Company response to Public Staff Data Request Nos. 12-3 and 143-1. 2/ Labor allocation factor. 65.3245% 2/ ($599) DUKE ENERGY PROGRESS, LLC Docket No. E-2, Sub 1142 North Carolina Retail Operations ADJUSTMENT TO BOARD OF DIRECTORS EXPENSE For the Test Year Ended December 31, 2016 (in Thousands) Line No. Item 1 2 3 Total Board of Directors (BOD) cash compensation Percentage of exclusion per Public Staff Public Staff adjustment to BOD compensation (L1 x L2) 4 5 6 BOD insurance charged to DEP Percentage of exclusion per Public Staff Public Staff adjustment to BOD insurance (L4 x L5) 7 8 9 BOD and executive members expenses allocated to DEP Percentage of exclusion per Public Staff Public Staff adjustment to BOD and executive members expenses (L4 x L5) 10 11 12 Total Public Staff adjustment to BOD compensation and expenses (L3 + L6 + L9) NC retail percentage Public Staff adjustment to BOD expenses - NC retail (L10 x L11) 1/ 2/ 3/ 4/ 5/ Amount from 2017 Proxy Statement, allocated to DEP. Recommended by Public Staff. From Company Response to Public Staff Data Request No. 98, Item 1. From Company Response to Public Staff Data Request No. 150, Item 4. COS allocation factor DPALL (production demand). Peedin Exhibit 1 Schedule 3-1(r) Amount $493 1/ 50% 2/ (247) 3,829 3/ 50% 2/ (1,915) 261 4/ 50% 2/ (131) (2,293) 60.6008% 5/ ($1,390) Duke Energy Progress Docket No. E-2, Sub 1142 North Carolina Retail Operations ADJUSTMENT TO END OF LIFE RESERVE FOR NUCLEAR MATERIALS AND SUPPLIES AMORTIZATION EXPENSE For the Test Year Ended December 31, 2016 (in Thousands) Line No. 1 2 3 4 5 6 7 8 9 10 11 12 13 1/ 2/ 3/ 4/ 5/ 6/ 7/ 8/ 9/ Item Inventory as of December 31, 2016 Adjustment to remove inventory Inventory balance per Public Staff (L1 + L2) Percentage of M&S with salvage value or transferrable Nuclear M&S inventory base for amortization per Public Staff (L3 x (1-L4)) NC retail percentage NC retail nuclear M&S base for amortization (L5 x L6) Less: projected inventory reserve at 1/31/18 NC nuclear reserve required at 2/1/18 (L7 - L8) Years of remaining plant life NC retail annual expense for reserve per Public Staff (L9 / L10) Amount per Company Public Staff adjustment to nuclear M&S reserve amortization expense (L11 - L12) Bateman Supplemental Exhibit 1, Page 49, NC-1502, Line 2. Total adjustment from Column (e) allocated based on inventory amounts from Line 1. Bateman Supplemental Exhibit 1, Page 49, NC-1502, Line 4. Bateman Supplemental Exhibit 1, Page 49, NC-1502, Line 7. Bateman Supplemental Exhibit 1, Page 49, NC-1502, Line 9. Bateman Supplemental Exhibit 1, Page 49, NC-1502, Lines 12 through 15. Bateman Supplemental Exhibit 1, Page 49, NC-1502, Line 17. Sum of Column (a) through Column (d). Based on recommendation of Public Staff witness Metz. Peedin Exhibit 1 Schedule 3-1(s) Brunswick 1 (a) $101,723 (2,896) 98,827 20% 79,062 63.790% 50,434 5,042 45,392 18.60 2,440 2,520 ($80) Brunswick 2 (b) 1/ 2/ 3/ 4/ 5/ 6/ 7/ $101,723 (2,896) 98,827 20% 79,062 63.790% 50,434 5,439 44,995 16.90 2,662 2,750 ($88) Harris (c) 1/ 2/ 3/ 4/ 5/ 6/ 7/ $127,456 (3,628) 123,828 20% 99,062 63.790% 63,192 3,772 59,420 28.73 2,068 2,133 ($65) Robinson (d) 1/ 2/ 3/ 4/ 5/ 6/ 7/ $104,700 (2,980) 101,720 20% 81,376 63.790% 51,910 4,046 47,864 12.49 3,832 3,954 ($122) Total (e) 1/ 2/ $435,602 8/ (12,400) 9/ $423,202 3/ 4/ 5/ 6/ 7/ $11,002 8/ 11,357 8/ ($355) Duke Energy Progress Docket No. E-2, Sub 1142 North Carolina Retail Operations ADJUSTMENT TO COMPANY'S INFLATION ADJUSTMENT For the Test Year Ended December 31, 2016 (in Thousands) Line No. 1 2 3 4 5 6 7 8 9 10 11 1/ 2/ 3/ 4/ 5/ 6/ 7/ 8/ Item Total non-labor O&M expense to be adjusted per Company Public Staff adjustment to variable O&M expenses for changes in customer growth Public Staff adjustment to aviation expense Public Staff adjustment to outside services Public Staff adjustment to sponsorships and donations Public Staff adjustment to Board of Directors expenses Total adjusted O&M subject to inflation (Sum of L1 thru L6) Inflation percentage based on August 31, 2017 update Public Staff inflation adjustment (L7 x L8) Inflation adjustment per Company Public Staff adjustment to inflation adjustment (L9 - L10) Bateman Supplemental Exhibit 1, Page 69, NC-2101, Line 21, Column (c). Peedin Exhibit 1, Schedule 3-1(b), Line 9. Peedin Exhibit 1, Schedule 3-1(m), Line 9. Peedin Exhibit 1, Schedule 3-1(n), Line 6. Peedin Exhibit 1, Schedule 3-1(p), Line 3. Peedin Exhibit 1, Schedule 3-1(r), Line 12. Peedin Exhibit 1, Schedule 3-1(t)(1), Line 4, Column (e). Bateman Supplemental Exhibit 1, Page 69, NC-2101, Line 23, Column (c). Peedin Exhibit 1 Schedule 3-1(t) Amount $315,680 1/ 2,585 (1,068) (133) (256) (1,390) 315,418 2.57% 8,106 2,762 $5,344 2/ 3/ 4/ 5/ 6/ 7/ 8/ Duke Energy Progress Docket No. E-2, Sub 1142 North Carolina Retail Operations CALCULATION OF INFLATION RATE For the Test Year Ended December 31, 2016 (in Thousands) Line No. Item Peedin Exhibit 1 Schedule 3-1(t)(1) PPI Finished Goods Less Food & Energy (b) CPI (a) PPI Processed Materials Less Food & Energy (c) 1 August 2017 245.5 1/ 199.1 1/ 193.2 1/ 2 Thirteen month average for test year 239.7 2/ 195.1 2/ 186.9 2/ 3 Increase from average to August 2017 (L1 - L2) 5.8 4.0 6.3 4 Percentage increase 2.42% 3/ 2.05% 3/ 3.37% 3/ 1/ 2/ 3/ 4/ 5/ Based on information from Bureau of Labor & Statistics. NCUC Form E-1, Item No. 10, NC-2103, Line 15. Line 3 divided by Line 2. Average of percentage increases in Columns (b) and (c). Average of CPI percentage increase and PPI average percentage increase in Columns (a) and (d). PPI Average (d) 2.71% 4/ Inflation Rate (e) 2.57% 5/ Duke Energy Progress Docket No. E-2, Sub 1142 North Carolina Retail Operations INTEREST SYNCHRONIZATION ADJUSTMENT For the Test Year Ended December 31, 2016 (in Thousands) Line No. Item Peedin Exhibit 1 Schedule 3-1(u) Amount 1 2 3 Public Staff original cost rate base Public Staff long term debt ratio Public Staff embedded cost of debt 4 Public Staff interest expense income tax deduction (L1 x L2 x L3) 159,549 5 Company interest expense income tax deduction 158,793 4/ 6 Adjustment to interest expense (L4 - L5) 7 Composite tax rate 8 Adjustment to income taxes (-L6 x L7) 1/ 2/ 3/ 4/ 5/ Peedin Exhibit 1, Schedule 2, Line 10, Column (c). Peedin Exhibit 1, Schedule 4, Line 1, Column (a). Peedin Exhibit 1, Schedule 4, Line 1, Column (c). Peedin Exhibit 1, Schedule 3-1(u)(1), Line 4. Peedin Exhibit 1, Schedule 1-3, Line 8. $7,878,961 1/ 50.000% 2/ 4.050% 3/ 756 37.0599% 5/ ($280) Duke Energy Progress Docket No. E-2, Sub 1142 North Carolina Retail Operations CALCULATION OF COMPANY'S INTEREST SYNCHRONIZATION ADJUSTMENT For the Test Year Ended December 31, 2016 (in Thousands) Line No. Item 1 NC retail rate base per Company 2 Long tern debt ratio per Company 3 Long term debt cost rate per Company 4 Interest tax deduction per Company (L1 x L2 x L3) 1/ Peedin Exhibit 1, Schedule 2, Line 10, Column (a). 2/ Bateman Supplemental Exhibit 1, Page 97, NC-3504, Line 1. Peedin Exhibit 1 Schedule 3-1(u)(1) Amount $8,102,086 1/ 47.000% 2/ 4.170% 2/ $158,793 Duke Energy Progress Docket No. E-2, Sub 1142 North Carolina Retail Operations RETURN ON EQUITY AND ORIGINAL COST RATE BASE BEFORE AND AFTER PUBLIC STAFF PROPOSED INCREASE For the Test Year Ended December 31, 2016 (in Thousands) Line No. Item Capitalization Ratio (a) NC Retail Rate Base (b) Peedin Exhibit 1 Schedule 4 Before Public Staff Proposed Increase Embedded Weighted Cost or Cost or Return Return (c) (d) Net Operating Income (e) NC Retail Rate Base (f) After Public Staff Proposed Increase Embedded Weighted Cost or Cost or Return Return (g) (h) Net Operating Income (i) 1 Long-term debt 50.000% 1/ $3,939,481 2/ 4.050% 1/ 2.03% 5/ $159,549 6/ $3,939,563 9/ 4.050% 1/ 2.03% 11/ $159,552 12/ 2 Common equity 50.000% 1/ 3,939,481 2/ 9.16% 4/ 4.58% 5/ 360,696 7/ 3,939,563 9/ 9.20% 1/ 4.60% 11/ 362,440 12/ 3 Total (L1 + L2) $520,245 8/ $7,879,126 10/ 1/ 2/ 3/ 4/ 5/ 6/ 7/ 8/ 9/ 10/ 11/ 12/ Per Public Staff witness Parcell. Column (b), Line 3 times Column (a) Peedin Exhibit 1, Schedule 2, Line 10, Column (c). Column (e) divided by Column (b). Column (a) times Column (c). Column (b) times Column (c). Line 3, Column (e) minus Line 1, Column (e). Peedin Exhibit 1, Schedule 3, Line 19, Column (c). Column (f), Line 3 times Column (a) Peedin Exhibit 1, Schedule 2, Line 10, Column (e). Column (a) times Column (g). Column (f) times Column (g). 100.000% $7,878,961 3/ 6.61% 6.63% $521,992 Duke Energy Progress Docket No. E-2, Sub 1142 North Carolina Retail Operations CALCULATION OF PUBLIC STAFF'S ADDITIONAL GROSS REVENUE REQUIREMENT For the Test Year Ended December 31, 2016 (in Thousands) Line No. Item Peedin Exhibit 1 Schedule 5 Debt (a) Equity (b) Total (c) 1 Calculation of additional gross revenue requirement Required net operating income $159,552 1/ $362,440 4/ $521,992 2 Net operating income before proposed increase $159,549 2/ 360,696 5/ 520,245 3 Additional net operating income requirement (L1 - L2) 4 Retention factor 5 Additional revenue requirement (L3 / L4) 1/ 2/ 3/ 4/ 5/ 6/ 7/ Peedin Exhibit 1, Schedule 4, Line 1, Column (i). Peedin Exhibit 1, Schedule 4, Line 1, Column (e). Peedin Exhibit 1, Schedule 1-2, Line 10. Peedin Exhibit 1, Schedule 4, Line 2, Column (i). Peedin Exhibit 1, Schedule 4, Line 2, Column (e). Peedin Exhibit 1, Schedule 1-2, Line 14. Column (a) plus Column (b). 3 0.9968025 3/ $3 1,744 1,747 0.6273883 6/ $2,780 $2,783 7/ INDEX TO PEEDIN EXHIBIT 2 Title 1 CALCULATION OF LEVELIZED EDIT RIDER CREDIT 2 CALCULATION OF ANNUITY FACTOR FOR EDIT LIABILITY RIDER Schedule Number 1 1(a) Duke Energy Progress Docket No. E-2, Sub 1142 North Carolina Retail Operations CALCULATION OF LEVELIZED EDIT RIDER CREDIT For the Test Year Ended December 31, 2016 (in Thousands) Line No. 1 2 3 4 5 6 7 Item Total NC retail regulatory liability to be amortized Annuity factor Levelized rider EDIT regulatory liability (L1 / L2) One minus composite income tax rate Net operating income effect (L3 x L4) Retention factor Levelized rider EDIT credit (L5 / L6) 1/ 2/ 3/ 4/ 5/ NCUC Form E-1, Item 10, NC-3201, Line 1. Peedin Exhibit 2, Schedule 1(a), Line 6. One minus composite income tax rate of 37.0599%. Peedin Exhibit 1, Schedule 1-2, Line 14, Column (d). Column (a) plus Column (b). Peedin Exhibit 2 Schedule 1 Year 1 Revenue Requirement (a) ($150,466) 1.8906 (79,586) 62.9401% (50,092) 0.6273883 ($79,842) Year 2 Revenue Requirement (b) 1/ 2/ 3/ 4/ ($150,466) 1.8906 (79,586) 62.9401% (50,092) 0.6273883 ($79,842) Total Revenue Requirement (c) 1/ 2/ 3/ 4/ ($159,172) 5/ 62.9401% (100,183) 0.6273883 ($159,683) Duke Energy Progress Docket No. E-2, Sub 1142 North Carolina Retail Operations CALCULATION OF ANNUITY FACTOR FOR EDIT LIABILITY RIDER For the Test Year Ended December 31, 2016 (in Thousands) Line No. 1 2 3 4 5 6 Item 2 1/ 1 5.875% Present value of 1 dollar over number of years with with 1 payment per year 1 plus (interest rate divided by two) Annuity factor (L4 x L5) 1.8366 1.0294 1.8906 After Tax Rate of Return Long-term debt Common equity Total 1/ 2/ 3/ 4/ 5/ 6/ 7/ 8/ Amount Annuity Factor Number of years Payment per period After tax rate of return (L9) Capital Structure (a) 7 8 9 Peedin Exhibit 2 Schedule 1(a) 50.00% 2/ 50.00% 3/ 100.00% Cost Rates (b) 4.050% 4/ 9.200% 5/ Rider period recommended by Public Staff. Peedin Exhibit 1, Schedule 4, Line 1, Column (a). Peedin Exhibit 1, Schedule 4, Line 2, Column (a). Peedin Exhibit 1, Schedule 4, Line 1, Column (g). Peedin Exhibit 1, Schedule 4, Line 2, Column (g). Column (a) times Column (b). Column (c) times (1 minus combined income tax rate of 37.0599%). Amount from Column (c). Overall Rate of Return (c) 2.025% 4.600% 6.625% 6/ Net of Tax Rate (d) 1.275% 7/ 4.600% 8/ 5.875% BEFORE THE NORTH CAROLINA UTILITIES COMMISSION DOCKET NO. E-2, SUB 1142 In the Matter of: Application of Duke Energy Progress, LLC For Adjustment of Rates and Charges Applicable to Electric Service in North Carolina ) ) ) ) ) ) REBUTTAL TESTIMONY OF LAURA BATEMAN FOR DUKE ENERGY PROGRESS, LLC I. 1 2 Q. STATE YOUR NAME, BUSINESS ADDRESS, AND CURRENT POSITION. 3 4 PLEASE INTRODUCTION AND PURPOSE A. My name is Laura A. Bateman, and my business address is 411 Fayetteville 5 Street, Raleigh, North Carolina. I am a Director of Rates & Regulatory 6 Planning, employed by Duke Energy Carolinas, LLC, testifying on behalf of 7 Duke Energy Progress, LLC ("DE Progress" or the "Company"). 8 Q. ARE YOU THE SAME LAURA A. BATEMAN WHOSE DIRECT 9 TESTIMONY AND EXHIBITS WERE FILED IN THIS DOCKET ON 10 JUNE 1, 2017 AND WHOSE SUPPLEMENTAL DIRECT TESTIMONY 11 AND EXHIBIT WERE FILED IN THIS DOCKET ON SEPTEMBER 15, 12 2017? 13 A. Yes. 14 Q. WHAT IS THE PURPOSE OF YOUR REBUTTAL TESTIMONY IN THIS PROCEEDING? 15 16 A. The purpose of my rebuttal testimony is to respond to certain accounting and 17 ratemaking adjustments proposed by the Public Staff, and to summarize the 18 Company's position in this proceeding by providing Revised Bateman Exhibit 19 1, which is an informational filing and a revision of the original Bateman 20 Exhibit 1 filed with my direct testimony. My testimony will also address REBUTTAL TESTIMONY OF LAURA BATEMAN DUKE ENERGY PROGRESS, LLC Page 2 DOCKET NO. E-2, SUB 1142 1 issues raised by Department of Defense witness Cannady, related to the 2 Asheville Combined Cycle, end of life nuclear costs, rate base treatment of 3 certain deferred costs, and employee benefits expense. 1 4 Q. DOES YOUR TESTIMONY INCLUDE ANY EXHIBITS? 5 A. Yes, I have included five exhibits. As mentioned previously, Revised 6 Bateman Exhibit 1 shows the Company's revised revenue requirement 7 incorporating the Company's adjustments filed in its supplemental filing and 8 the Company's rebuttal position in this case. 9 Bateman Rebuttal Exhibit 1 provides the Company's position on the 10 adjustments proposed by the Public Staff. Specifically, Column 1, labeled 11 "Public Staff Position" is a restatement of Public Staff witness Peedin Exhibit 12 1, Schedule 1. 13 adjustments of the Public Staff which the Company agrees with, as well as 14 those adjustments of the Public Staff that are not being opposed by the 15 Company. This column is labeled "Accepted/Not Opposed." The amounts 16 shown in Column 3 are those adjustments that the Company is opposing for 17 purposes of this case and that column is labeled "Opposed." 18 Bateman Rebuttal Exhibit 2 shows the Company's calculation of the excess 19 deferred income tax rider. 20 Bateman Rebuttal Exhibit 3 is a copy of the Company's reply comments filed 21 in the storm deferral docket, E-2, Sub 1131. 1 In Column 2, I have identified the amounts of those Direct Testimony of Constance T. Cannady at 17-25. REBUTTAL TESTIMONY OF LAURA BATEMAN DUKE ENERGY PROGRESS, LLC Page 3 DOCKET NO. E-2, SUB 1142 1 Bateman Rebuttal Exhibit 4 shows corrections to the Public Staff's extended 2 customer growth adjustment. 3 Q. WERE THESE EXHIBITS PREPARED BY YOU OR UNDER YOUR DIRECTION AND SUPERVISION? 4 5 A. Yes, these exhibits were prepared under my supervision. II. 6 RESPONSE TO PUBLIC STAFF ACCOUNTING ADJUSTMENTS Adjustments Not Opposed 7 8 Q. PUBLIC STAFF THAT THE COMPANY DOES NOT OPPOSE? 9 10 ARE THERE ANY ADJUSTMENTS RECOMMENDED BY THE A. Yes, there are two recommended adjustments by Public Staff that the 11 Company does not oppose. Specifically, the Company does not oppose the 12 following adjustments from Peedin Exhibit 1, Schedule 1: 13 Line 6 - Change in debt cost rate from 4.170% to 4.050% 14 The Company does not oppose Public Staff witness Parcell's recommendation 15 to update the debt rate as of September 2017. 2 However, given that the Public 16 Staff is updating cost of debt financing through September 2017, the 17 Company is also updating its post-test year plant additions adjustment through 18 September 2017, and plans to update through October 2017 prior to the 19 hearing, as well, and may include recent updates regarding vegetation 20 management. 2 Direct Testimony of David C. Parcell at 7. REBUTTAL TESTIMONY OF LAURA BATEMAN DUKE ENERGY PROGRESS, LLC Page 4 DOCKET NO. E-2, SUB 1142 1 Line 12 - Adjust Harris COLA annual amortization 2 The Company also does not oppose Public Staff witness Peedin's proposed 3 adjustment to the Harris COLA amortization period. In her testimony, witness 4 Peedin proposes an eight-year amortization rather than the five-year 5 amortization period in the Company's filing. 3 In the Company's petition for 6 deferral in Docket E-2, Sub 1035, the Company stated that in its next general 7 rate case it would propose to amortize the costs "over a period not to exceed 8 five years," which is why the Company initially proposed a five-year 9 amortization period in this docket. 4 While it is the Company's position that 10 the Commission's order in the deferral docket does not establish an eight-year 11 amortization period for Harris COLA costs, 5 the Company does not oppose 12 the recommendation of Public Staff. Adjustments Partially Opposed 13 14 Q. ARE THERE ANY ADJUSTMENTS RECOMMENDED BY THE 15 PUBLIC 16 OPPOSES? 17 A. STAFF THAT THE COMPANY ONLY PARTIALLY Yes. There are four recommended non-coal ash adjustments by Public Staff 18 for which the Company partially opposes the recommendation. Specifically, 19 the Company does not oppose portions of the following recommendations 20 from Peedin Exhibit 1, Schedule 1: 3 Direct Testimony of Darlene P. Peedin at 15-16. See Order Approving Request for Deferral Accounting, Docket No. E-2, Sub 1035 at 3. 5 Id. at 4-5. 4 REBUTTAL TESTIMONY OF LAURA BATEMAN DUKE ENERGY PROGRESS, LLC Page 5 DOCKET NO. E-2, SUB 1142 1 Line 14 - Adjust for lost industrial revenues due to Hurricane Matthew 2 The Company does not oppose Public Staff' witness Williamson's 3 recommendation to include the impact of lost industrial revenues due to 4 Hurricane Matthew. 6 However, the Company does oppose the calculation 5 proposed by witness Williamson. 6 revenue due to Hurricane Matthew, the Company stated that it did not include 7 industrial class customers in the estimate because "using customer averages 8 would not be reliable due to significant usage differences among customers" 9 for this class. Witness Williamson, as described on page 5 of his testimony, 10 used average daily usage for the industrial class in his calculation. Because of 11 the impact that a handful of extremely high usage customers can have on this 12 average calculation, the Company looked at the detailed hourly customer data 13 for industrial customers on the Real Time Pricing rate schedule. Using this 14 approach, the Company was able to determine that 21 of these high usage 15 customers did not lose power as a result of the storm. Therefore, I have 16 recalculated witness Williamson's adjustment to exclude these 21 customers 17 from the average daily usage calculation, reducing his adjustment from a 18 reduction of $2,072,000 to a reduction of $1,686,000, as shown in Bateman 19 Rebuttal Exhibit 1. 6 In its initial adjustment regarding lost Direct Testimony of Tommy C. Williamson, Jr. at 4. REBUTTAL TESTIMONY OF LAURA BATEMAN DUKE ENERGY PROGRESS, LLC Page 6 DOCKET NO. E-2, SUB 1142 1 Line 15 - Remove EDIT refund from base rates for treatment as a rider 2 The Company does not oppose the rider treatment for the excess deferred 3 income taxes ("EDIT"); however, the Company does oppose shortening the 4 amortization period from the reasonable five years proposed by the Company 5 to two years as proposed by Public Staff witness Peedin. 7 Witness Peedin 6 offered no support for her recommendation. Furthermore, Public Staff has 7 recommended extending every other amortization period proposed by the 8 Company. Therefore, the Company opposes this asymmetrical treatment and 9 believes the amortization for EDIT should remain in the general range of other 10 amortization periods in this proceeding. 11 Line 18 - Adjust executive compensation 12 Public Staff witness Peedin recommends adding a fifth executive to the 13 Company's adjustment to remove 50% of the compensation of the top four 14 executives. 8 While the Company does not oppose this adjustment, witness 15 Peedin also recommends removing 50% of the benefits for these five 16 executives. 9 The Company opposes this portion of the adjustment for the 17 reasons discussed by Company witness Silinski in his rebuttal testimony. 18 Line 19 - Adjust outside services 19 Public Staff witness Peedin made an adjustment to remove several charges 20 related to Outside Services based on the Public Staff's audit of these 7 Direct Testimony of Darlene P. Peedin at 30-31. Id. at 17-18. 9 Id. 8 REBUTTAL TESTIMONY OF LAURA BATEMAN DUKE ENERGY PROGRESS, LLC Page 7 DOCKET NO. E-2, SUB 1142 1 charges. 10 The Company agrees with approximately $68,000 of the $134,000 2 adjustment proposed. 3 opposes is primarily related to legal services related to coal ash and 4 groundwater issues. For the reasons discussed in the rebuttal testimony of 5 Company witness Wright, the Company believes these costs were reasonable 6 and prudently incurred and therefore should be recovered from customers. Adjustments to Coal Ash Pond Closure Costs 7 8 Q. PLEASE EXPLAIN THE COMPANY'S RESPONSE TO THE PUBLIC STAFF ADJUSTMENTS REGARDING COAL ASH POND CLOSURE 9 COSTS. 10 11 The portion of the adjustment that the Company A. The Public Staff recommends two adjustments related to coal ash pond 12 closure cost recovery, which are listed on Peedin Exhibit 1, Schedule 1: 13 Line 22 - Remove ongoing environmental costs and 14 Line 25 - Adjust deferred environmental costs 15 These two adjustments are based on seven more specific adjustments 16 proposed by Public Staff witness Maness and summarized on pages 5-6 of his 17 testimony. While the Company opposes most of the Public Staff's adjustment, 18 there are two adjustments proposed by witness Maness that the Company does 19 not oppose. 20 Witness Maness's first adjustment relates to the disallowance of coal 21 ash management expenditures on the basis of prudence, as recommended by 10 Id. at 23. REBUTTAL TESTIMONY OF LAURA BATEMAN DUKE ENERGY PROGRESS, LLC Page 8 DOCKET NO. E-2, SUB 1142 1 other Public Staff witnesses. Company witness Kerin addresses these 2 recommendations in his rebuttal testimony. 3 Witness Maness's second adjustment relates to the allocation of coal 4 ash pond closure costs. He recommends that the costs DE Progress has 5 identified as "CAMA Only" be allocated based on an allocator that allocates 6 to all jurisdictions, instead of direct assigning these costs to North Carolina. 7 On page 13 of his testimony, he states this is because "the coal plants 8 associated with the costs are being or were operated to serve the entire DEP 9 system." In general, I agree with witness Maness that the costs of a system 10 should be borne by all of the users of the system. However, the Company has 11 identified very specific cost categories, groundwater wells used specifically 12 for CAMA purposes and permanent water supplies provided to North Carolina 13 customers pursuant to North Carolina law, that should be treated as an 14 exception to this general rule, due to their nature as being unique to North 15 Carolina. 16 Commission has allowed direct assignment to North Carolina. One example 17 is the incremental costs that the Company incurs to comply with the North 18 Carolina Renewable Energy and Energy Efficiency Standard ("REPS"). 11 19 This is a uniquely North Carolina standard and 100 percent of the incremental 20 costs are being recovered from North Carolina customers. 12 Another example 11 12 This would be consistent with other examples where the N.C. Gen. Stat. 62-138(h). Docket No. E-100, Sub 113 (February 29, 2008). REBUTTAL TESTIMONY OF LAURA BATEMAN DUKE ENERGY PROGRESS, LLC Page 9 DOCKET NO. E-2, SUB 1142 1 is the costs to comply with the North Carolina Clean Smokestacks rule. 13 2 Again, prior to federal legislation, this was a uniquely North Carolina 3 standard, and the Commission allowed the Company to recover the initial 4 costs 100 percent from North Carolina customers. 14 Based on this precedent, 5 the Company believes the costs it has identified as specific to CAMA and 6 unique to North Carolina should also be considered as an exception and 7 should be direct assigned to North Carolina customers. Witness Maness also 8 recommends that all of the coal ash pond closure costs be allocated based on 9 the energy allocation factor instead of the demand related allocation factor. 10 The Company opposes this recommendation for the reasons set forth in 11 Company witness Hager's rebuttal testimony. 12 Witness Maness's third adjustment is to add a return on the deferred 13 balance up through the expected date of new rates in this proceeding. The 14 Company does not oppose this adjustment. 15 Witness Maness's fourth adjustment is to calculate the return using a 16 mid-month convention rather than a beginning-of-month convention. The 17 Company does not oppose this adjustment. 18 Witness Maness's fifth and sixth adjustments are to amortize the 19 deferred costs over a 28-year amortization period rather than the Company's 20 proposed five-year amortization period, and to remove the unamortized 21 balance from rate base. Witness Maness states, on page 22 of his testimony, 13 14 N.C. Gen. Stat. 62-133.6. Docket No. E-2, Sub 900 (September 5, 2008). REBUTTAL TESTIMONY OF LAURA BATEMAN DUKE ENERGY PROGRESS, LLC Page 10 DOCKET NO. E-2, SUB 1142 1 that the combination of these two adjustments effectuates the 50/50 sharing 2 proposed by the Public Staff. The Company opposes the concept of sharing 3 proposed by the Public Staff for the reasons set forth in the rebuttal testimony 4 of Company witness Wright. 5 Witness Maness's seventh adjustment is to remove the ongoing 6 environmental costs. The Company opposes this adjustment. On pages 23-24 7 of his testimony, witness Maness states that the main reason he opposes 8 including an ongoing level of coal ash pond closure costs in rates because "it 9 will potentially make future equitable sharing of the costs of coal ash much 10 harder to achieve." The Company opposes the concept of sharing proposed by 11 the Public Staff for the reasons set forth in the rebuttal testimony of Company 12 witness Wright. 13 Additionally, the Company's spend on coal ash pond closure will be 14 recurring going forward, and there are no known and measurable reasons to 15 adjust the test period levels. The fact that the Company has deferred these 16 costs during the test period is not a reason that the rates established should not 17 reflect the normal level of ongoing costs. While these costs are unique and are 18 accounted for in a unique manner, they were previously accounted for as cost 19 of removal. With cost of removal, the Company is allowed to collect in rates 20 a portion of expected future spend, not just dollars that have already been 21 spent. The two tables below show the cash shortfall over the next four years REBUTTAL TESTIMONY OF LAURA BATEMAN DUKE ENERGY PROGRESS, LLC Page 11 DOCKET NO. E-2, SUB 1142 1 resulting from the projected coal ash pond closure spend, using both the 2 Public Staff's proposal and under the Company's proposal: Table 1 - Public Staff's Proposal (in $MM) Line 1 2 3 4 DEP total estimated spend Approximate NC retail allocation Less amount in rates Annual cash shortfall (1) (2) (3) (4) 2018 286.1 175.4 175.4 2019 419.0 256.8 256.8 2020 237.9 145.8 145.8 2021 208.6 127.9 127.9 2018 286.1 175.4 129.1 46.3 2019 419.0 256.8 129.1 127.7 2020 237.9 145.8 129.1 16.7 2021 208.6 127.9 129.1 (1.2) Table 2 - Company's Proposal (in $MM) 3 Line 1 2 3 4 DEP total estimated spend Approximate NC retail allocation Less amount in rates Annual cash shortfall (1) (2) (3) (4) Notes (1) - Estimated spend is based on Duke's ARO estimate used for Q3 2017 financial reporting 4 (2) - Approximate NC retail allocation is based on ratio of total NC retail to system spend in Supplemental NC-1800 (262.3M/427.6M = 61.3%). Uses Company allocation method in both tables. (3) - $0 for Public Staff proposal. Based on NC-1900 for Company proposal (4) - Row 4 = Row 2 - Row 3 5 The Public Staff's proposal would result in significant cash flow short falls for 6 the Company with no justification. Company witness De May discusses the 7 negative impacts the Public Staff's proposal, including this significant impact 8 to cash flow, would have on the Company's credit metrics. For these reasons, 9 the Commission should reject the Public Staff's adjustment. REBUTTAL TESTIMONY OF LAURA BATEMAN DUKE ENERGY PROGRESS, LLC Page 12 DOCKET NO. E-2, SUB 1142 Adjustments to Storm Restoration Costs 1 2 Q. PLEASE DESCRIBE THE PUBLIC STAFF'S POSITION REGARDING 3 THE COMPANY'S DEFERRAL AND AMORTIZATION OF 2016 4 STORM COSTS. 5 A. On pages 28-30 of his testimony, witness Maness attaches a copy of the Initial 6 Comments of the Public Staff in the storm deferral docket, and summarizes 7 the Public Staff's position. In short, the Public Staff recommends: 8 9 10 11 12 13 14 15 16 17 1. That the Company only be allowed to defer storm expenses in excess of an amount of $27.4 million, 2. That no deferral of depreciation expense or return on undepreciated capital costs be allowed, 3. That no return on the deferred asset be allowed during the deferral period, 4. That DE Progress be required to start amortization of the deferred costs in October 2016, and 5. That the amortization period be extended from the three years proposed by the Company to ten years. 18 Line 21 of Peedin Exhibit 1, Schedule 1 shows the impact of Public Staff 19 witness Maness's recommendations related to 2016 storm restoration costs. REBUTTAL TESTIMONY OF LAURA BATEMAN DUKE ENERGY PROGRESS, LLC Page 13 DOCKET NO. E-2, SUB 1142 1 Q. POSITION? 2 3 A. No. The Company disagrees with all of the Public Staff's adjustments as discussed below. 4 5 DOES THE COMPANY AGREE WITH WITNESS MANESS'S Q. WHAT IS THE COMPANY'S POSITION ON THE FIRST 6 ADJUSTMENT LISTED ABOVE REGARDING THE "NORMAL" 7 AMOUNT OF STORM EXPENSE THE COMPANY SHOULD BE 8 EXPECTED TO BEAR BEFORE A DEFERRAL IS GRANTED? 9 A. The Company disagrees with the Public Staff's recommendation that $27.4 10 million should be considered a "normal" level of storm costs. The Company's 11 total incremental costs to repair and restore its system due to storm damage in 12 2016 far exceeded the level of major storm costs included in the Company's 13 last rate case of $12.7 million for the North Carolina retail jurisdiction, and 14 the Company is only asking to defer those costs in excess of the $12.7 million 15 level approved by the Commission in that case. 16 Company's position are explained in detail in its Reply Comments in Docket 17 No. E-2, Sub 1131, which are attached to my testimony as Bateman Exhibit 3. 18 A summary of these reasons is as follows: The reasons for the 19 The amount of $12.7 million is the amount of storm expense that was 20 included in the Company's last rate case, and is therefore, the amount being 21 collected in current rates. This $12.7 million was based on a normalized level 22 of storm costs. Thus, it bears to reason that storm expenses at a normalized REBUTTAL TESTIMONY OF LAURA BATEMAN DUKE ENERGY PROGRESS, LLC Page 14 DOCKET NO. E-2, SUB 1142 1 $12.7 million would be ordinary expenses and expenses above that would be 2 extraordinary. 3 approach by selecting the highest yearly storm expense in the past 14-year 4 period ($27.4 million) as the dividing line between normal and extraordinary, 5 which is unreasonable. It is clear in this case that the Company recovers only 6 $12.7 million for storm costs in current rates and that that amount is based on 7 a normal level of storm costs. Arbitrarily changing that normal level to a 8 highest amount of storm costs in a 14-year period violates the very definition 9 of normal which would instead imply a typical, usual, or expected level of Nonetheless, Public Staff is taking a seemingly arbitrary costs. 10 11 In addition, in its Order Approving in Part and Denying in Part 12 Request for Deferral Accounting in Docket No. E-7, Sub 1029, the 13 Commission stated at pages 12-13: "In determining whether to allow deferral requests, the Commission has consistently based its decision on whether to allow deferral requests on whether absent deferral, the costs in question would have a material impact on the Company's financial condition and in particular, the Company's achieved level of earnings." 15 14 15 16 17 18 19 20 In this case, the expenses incurred in excess of $12.7 million in 2016 would 21 have a material impact on the Company's financial condition and achieved 22 level of earnings. Setting the normal range of fluctuation for storm costs 15 Order Approving in Part and Denying in Part Request for Deferral Accounting, Docket No. E-7, Sub 1029 (April 13, 2013) REBUTTAL TESTIMONY OF LAURA BATEMAN DUKE ENERGY PROGRESS, LLC Page 15 DOCKET NO. E-2, SUB 1142 1 artificially high, as the Public Staff suggests, will also have a material impact 2 on the Company's financial condition and achieved level of earnings. 3 Q. WHAT IS THE COMPANY'S POSITION ON THE SECOND 4 ADJUSTMENT LISTED ABOVE REGARDING THE INCLUSION OF 5 DEPRECIATION EXPENSE AND RETURN ON CAPITAL COSTS IN 6 THE DEFERRAL? 7 A. The Company disagrees with the Public Staff's recommendation that there be 8 no deferral of depreciation expense and return on capital costs. The Company 9 incurred approximately $49.4 million of incremental capital costs associated 10 with the 2016 storms. If the Company is not allowed to consider the earnings 11 impacts associated with these capital repairs, DEP will be denied recovery of 12 the incremental depreciation expense associated with those investments, as 13 well as the return on the unamortized portion of the incremental capital 14 investments until these assets are included in rates in this rate case. While 15 Public Staff is not aware of any Commission precedent supporting deferral of 16 the depreciation expense and associated carrying costs resulting from storm 17 damage, Public Staff has also failed to offer any precedent where the 18 Commission specifically denied such a request either. The failure to defer and 19 recover these costs has the same financial impact as the inability to defer and 20 recover O&M expenses and should be treated no differently in the 21 determination of the deferred amount. REBUTTAL TESTIMONY OF LAURA BATEMAN DUKE ENERGY PROGRESS, LLC Page 16 DOCKET NO. E-2, SUB 1142 1 Q. WHAT IS THE COMPANY'S POSITION ON THE THIRD 2 ADJUSTMENT LISTED ABOVE REGARDING THE INCLUSION OF 3 A RETURN ON THE DEFERRED AMOUNT DURING THE 4 DEFERRAL PERIOD? 5 A. The Company disagrees with the Public Staff's recommendation that there be 6 no deferral of a return on the deferred amount during the deferral period. 7 When the Company incurs an extraordinary cost, it is responsible for 8 acquiring the necessary funds to "pay the bills" as those costs are incurred. 9 Those funds include a carrying cost or cost of capital. And that cost of capital 10 exists and increases until the Company is able to recover those costs through 11 incremental revenues. Cost of capital is a normal "cost of service" amount 12 and should be deferred along with all other costs related to storm restoration. 13 Again, the failure to defer and recover these costs of capital has the same 14 financial impact as the inability to defer and recover O&M expenses and 15 should be treated no differently in the determination of the deferred amount. 16 Q. WHAT IS THE COMPANY'S POSITION ON THE FOURTH 17 ADJUSTMENT 18 AMORTIZATION PERIOD FOR THE DEFERRED COSTS SHOULD 19 BEGIN? 20 A. LISTED ABOVE REGARDING WHEN THE The Company disagrees with the Public Staff's recommendation that the 21 amortization period begin immediately. 22 Commission has consistently based its decision on whether to allow deferral REBUTTAL TESTIMONY OF LAURA BATEMAN DUKE ENERGY PROGRESS, LLC Historically, as stated above, the Page 17 DOCKET NO. E-2, SUB 1142 1 requests on whether absent deferral, the costs in question would have a 2 material impact on the Company's financial condition and in particular, the 3 Company's achieved level of earnings. In cases where the Company has a 4 near-term planned rate case, it has been customary for the Commission to 5 permit those deferred costs to remain as a regulatory asset until new rates are 6 effective pursuant to that next general rate case. In this case, the Company 7 requested deferral of extraordinary storm costs from late 2016 until the new 8 rates from this rate case, filed in June 2017, could be established. The last 9 order from the Commission approving a storm deferral for DE Progress was in 10 2003.16 In its reply comments in that docket, the Company provided current 11 accounting guidance from two major external audit firms on this issue, and 12 confirmed with its external auditor the following impacts stated in its reply 13 comments: "a deferral where amortization is required without a corresponding increase in revenues would have to be expensed immediately. If the utility does have a planned rate case, like DEP does, the accounting guidance would require the utility to write-off the estimated amortization that would occur before new rates from that rate case are expected to be effective."17 14 15 16 17 18 19 20 16 See Order Granting in Part and Denying in Part Request for Deferral Accounting, Docket No. E-2, Sub 843 (December 23, 2003). REBUTTAL TESTIMONY OF LAURA BATEMAN DUKE ENERGY PROGRESS, LLC Page 18 DOCKET NO. E-2, SUB 1142 1 Q. WITNESS MANESS MAKES A STATEMENT ON PAGE 30 OF HIS 2 TESTIMONY WITH RESPECT TO THE ACCOUNTING STANDARDS 3 OR 4 COMMISSION. DO YOU AGREE WITH HIS STATEMENT? 5 A. Yes. EXTERNAL AUDITORS' AUTHORITY OVER THE Witness Maness states, "I do not believe it is appropriate for the 6 Financial Accounting Standards Board or the Company's external auditors to 7 control the Commission's decisions with regard to regulatory accounting or 8 ratemaking purposes." I agree with this statement. However, I also believe 9 that the Commission would like to understand the impacts that its orders will 10 have on the Company, including the restrictions the Company faces. While 11 the Financial Accounting Standards Board ("FASB") and external auditors do 12 not have authority over the Commission, they do have authority over the 13 Company's financial accounting and reporting. If the Commission wants to 14 issue an accounting order that allows the Company to establish a regulatory 15 asset, it is important for the Commission to understand and take into 16 consideration the accounting restrictions placed on the Company by FASB 17 and the interpretive guidance issued by the major external audit firms. If the 18 Commission issues an order approving the establishment of a regulatory asset, 19 but the order does not meet the requirements of the Company's external 20 auditors to establish a regulatory asset, the Company will not be able to 21 establish a regulatory asset. Therefore, the Commission's order will not have 22 the effect that the Commission intended. For this reason, it is important for REBUTTAL TESTIMONY OF LAURA BATEMAN DUKE ENERGY PROGRESS, LLC Page 19 DOCKET NO. E-2, SUB 1142 1 the Commission to understand the current accounting guidance regarding this 2 issue that impacts the Company. Approving the recommendation of the Public 3 Staff to begin the amortization prior to the Company's rates going into effect 4 would deny the Company legitimate cost recovery without justification. 5 Q. WHAT IS THE COMPANY'S POSITION ON THE FIFTH 6 ADJUSTMENT LISTED ABOVE REGARDING THE LENGTH OF 7 THE AMORTIZATION PERIOD? 8 A. The Company disagrees with the Public Staff's recommendation that the 9 amortization period be extended from three years to ten years. While the 10 Company agrees with the Public Staff that it has requested a large deferral 11 amount as compared to some other storm deferrals, the deferral's overall 12 effect on rates does not warrant a ten-year amortization period. Despite the 13 size of the recommended deferral, it is unreasonable to propose an 14 amortization period equal to the longest span of time traditionally used by the 15 Commission. The Company believes that a shorter amortization period, 16 potentially over three years, would be a more appropriate result. 17 Q. WHAT WOULD BE THE IMPACT ON THE DEFERRED AMOUNT IF 18 THE COMMISSION WERE TO ACCEPT THE PUBLIC STAFF'S 19 RECOMMENDATIONS? 20 A. The table below shows the impact of the first four of these five 21 recommendations. The fifth recommendation has no impact on the total 22 amount recovered. It only impacts how quickly the costs are recovered. REBUTTAL TESTIMONY OF LAURA BATEMAN DUKE ENERGY PROGRESS, LLC Page 20 DOCKET NO. E-2, SUB 1142 1 2 3 4 Company in $MM Request Limit deferral amount on O&M 67.5 No capital recovery in deferral 8.4 No return during the deferral period 5.7 Amortization starts October 2016 (assumes 10-yr. period) Total deferral balance as of 1/31/2018 81.5 % of storm costs recommended to be disallowed Public Staff Position 52.8 Difference (14.7) (8.4) (5.7) (7.0) (7.0) 45.7 (36) 44% 1 In summary, the Public Staff is recommending to disallow almost half of the 2 costs that the Company has incurred in restoring power to customers after 3 significant storm damage. 4 Company. Restoring power after a storm is extremely important to our 5 customers and to penalize the Company for its extensive efforts in this area 6 is unfair to the Company, and not in the best interest of customers. 7 Company witness Fountain also addresses this in his testimony. As a whole, this is very concerning to the Adjustments to Update through August 2017 8 9 Q. PLEASE DESCRIBE PUBLIC STAFF'S PROPOSED ADJUSTMENTS. 10 A. Public Staff is proposing to update through August 31, 2017, plant and 11 accumulated depreciation, revenues, and inflation (Lines 9, 10 and 33 of 12 Peedin Exhibit 1, Schedule 1, respectively). 13 Q. 16 THE COMPANY AGREE WITH THESE PROPOSED ADJUSTMENTS? 14 15 DOES A. No. The Company opposes these adjustments in concept, and disagrees with the calculation of the revenue adjustment. On page 11 of her testimony, REBUTTAL TESTIMONY OF LAURA BATEMAN DUKE ENERGY PROGRESS, LLC Page 21 DOCKET NO. E-2, SUB 1142 1 witness Peedin states the adjustment she recommends related to accumulated 2 depreciation is consistent with the Commission's past treatment of 3 comprehensive plant updates beyond the end of the test period. This is not 4 true for electric utilities. In all of the following electric utility general rate 5 cases, the utility updated for plant additions beyond the test period without 6 any corresponding updates to accumulated depreciation or customer growth: 7 Docket Nos. E-2, Sub 1023; E-2, Sub 537; E-7, Sub 989; E-7, Sub 909; E-7, 8 Sub 828; and E-7, Sub 487. What witness Peedin is recommending would be a 9 deviation from what has been the general practice in electric utility rate cases 10 in North Carolina for at least the past thirty years. 11 Further, the adjustment increases the negative impacts of regulatory 12 lag on the utility by reducing rate base. Assuming that new rates from this 13 rate case go into effect on February 1, 2018, the Company must have the 14 opportunity to earn a reasonable return on its rate base at that point in time, 15 not its overall rate base as of August 31, 2017. North Carolina's historic 16 practice of allowing updates for post-test year plant additions without 17 requiring additional updates to rate base has generally had the effect of 18 providing electric utilities an opportunity to earn their allowed return on rate 19 base levels after new rates go into effect. In her testimony, witness Peedin 20 references that similar adjustments have been approved in rate cases for 21 natural gas utilities. When deciding on whether this adjustment is also REBUTTAL TESTIMONY OF LAURA BATEMAN DUKE ENERGY PROGRESS, LLC Page 22 DOCKET NO. E-2, SUB 1142 1 appropriate for electric utilities, the Commission should consider the other 2 mechanisms that gas utilities have to mitigate regulatory lag. 3 Q. REVENUE CALCULATION. 4 5 PLEASE EXPLAIN THE COMPANY'S DISAGREEMENT WITH THE A. In addition to the overall opposition to the adjustments, the Company also has 6 identified two major issues with Public Staff witness Saillor's extended period 7 customer growth adjustment. 18 8 First, using information provided by the Company, Witness Saillor 9 performed a customer-by-customer analysis for the Medium General Service 10 (MGS) and Large General Service (LGS) classes. In reviewing his 11 adjustment, the Company noticed one of the new customers was extremely 12 large ~135GWh annual usage). 13 discovered that this was not in fact a new customer or net new load. Instead, 14 it was one of the Company's largest industrial customers, who had simply 15 changed delivery points. The load was shifted to the new delivery point but 16 the old delivery point had not yet been closed, thus leading to distorted results 17 in witness Saillor's adjustment. Removing this load results in a reduction to 18 witness Saillor's adjustment of $6.8 million. Upon further research, the Company 19 Second, witness Saillor's adjustment reaches forward to bring in 20 growth due to the number of customers; however, it doesn't make any 21 adjustment for changes in usage per customer. 18 The Company's average Direct Testimony of Scott Saillor at 5-8. REBUTTAL TESTIMONY OF LAURA BATEMAN DUKE ENERGY PROGRESS, LLC Page 23 DOCKET NO. E-2, SUB 1142 1 Residential usage per customer has been consistently decreasing over the last 2 several years, while growth in customers has been increasing. 3 inappropriate to pull forward future customer growth without linking the 4 associated usage patterns. Adjusting for the changes in Residential usage per 5 customer would result in a further reduction to Mr. Saillor's adjustment of 6 $43.4 million. 7 It is These corrections to Witness Saillor's extended period customer 8 growth adjustment can be found in Bateman Rebuttal Exhibit 4. 9 customer growth adjustment is a very complex adjustment. These were the 10 issues that the Company was able to identify with the extended period update 11 in the two weeks that it had to prepare rebuttal testimony. The complexity of 12 the adjustment and the level of vetting that would be appropriate is another 13 reason to not update beyond the end of the test period. While the Company 14 still opposes the overall adjustment, should the Commission decide that 15 customer growth should be updated through August 31, 2017, the adjustment 16 should be based on the change shown in Bateman Rebuttal Exhibit 4, not as 17 calculated by the Public Staff witness Saillor. REBUTTAL TESTIMONY OF LAURA BATEMAN DUKE ENERGY PROGRESS, LLC The Page 24 DOCKET NO. E-2, SUB 1142 Remaining Adjustments Opposed by the Company 1 2 Q. OF THE REMAINING ADJUSTMENTS THAT THE COMPANY 3 OPPOSES, WHICH ONES ARE RESPONDED TO BY OTHER 4 COMPANY WITNESSES? 5 A. The following Public Staff adjustments from Peedin Exhibit 1, Schedule 1, are 6 responded to by other Company witnesses in rebuttal testimony, using the 7 reference numbers: 8 Line 5 - Change in equity ratio from 53.00% to 50.00% equity 9 The Company opposes this adjustment for the reasons set forth in the rebuttal 10 testimony of Company witness De May. 11 Line 7 - Change in return on equity from 10.75% to 9.20% 12 The Company opposes this adjustment for the reasons set forth in the rebuttal 13 testimony of Company witness Hevert. 14 Line 11 - Adjust distribution vegetation management 15 The Company opposes this adjustment for the reasons set forth in the rebuttal 16 testimony of Company witness Simpson. 17 Line 23 - Adjust depreciation rates 18 The Company opposes this adjustment for the reasons set forth in the rebuttal 19 testimonies of Company witnesses Spanos and Kopp. REBUTTAL TESTIMONY OF LAURA BATEMAN DUKE ENERGY PROGRESS, LLC Page 25 DOCKET NO. E-2, SUB 1142 1 Line 24 - Adjust incentives and Line 32 - Adjust Board of Directors 2 expense 3 The Company's response to this adjustment can be found in the rebuttal 4 testimony of Company witness Silinski. 5 Line 27 - Adjust Sutton CT Blackstart plant cost and Line 29 - Adjust 6 Mayo ZLD plant cost 7 The Company opposes these adjustments for the reasons set forth in the 8 rebuttal testimony of Company witness Delowery. 9 Line 28 - Adjust EOL nuclear materials & supplies reserve expense 10 The Company's response to this adjustment can be found in the rebuttal 11 testimony of Company witness Gillespie. 12 Q. REMAINING PUBLIC STAFF PROPOSED ADJUSTMENTS. 13 14 PLEASE DESCRIBE THE COMPANY'S RESPONSE TO THE A. The Company's responses to the remaining Public Staff adjustments are 15 below, using the reference numbers from Peedin Exhibit 1, Schedule 1: 16 Line 13 - Adjust allocations by DEBS to DEP 17 The Company opposes this adjustment due to the methodology used by 18 witness Peedin. 19 factors, which include allocations to Piedmont, but applied the factors to 2016 20 service company costs, which only include three months of costs related to 21 Piedmont. There is a mismatch between the allocation factors and the costs 22 they are being applied to; therefore, the Company opposes this adjustment. Witness Peedin used 2017 service company allocation REBUTTAL TESTIMONY OF LAURA BATEMAN DUKE ENERGY PROGRESS, LLC Page 26 DOCKET NO. E-2, SUB 1142 1 Line 16 - Remove Customer Connect expenses 2 The Company opposes this adjustment. On page 28 of her testimony, witness 3 Peedin stated that her rationale for the adjustment was that the project was in 4 the "analytics stage" and that "the system has not been placed in service." To 5 be clear, the amounts that the Company included in its pro forma adjustment 6 are operating expenses, not capital or plant in service. 7 during a project's construction phase accrue a return, through Allowance for 8 Funds Used During Construction ("AFUDC"). Once the asset is placed in 9 service, the Company includes the plant balance in rate base and starts 10 recording depreciation expense to recover the investment, including AFUDC. 11 The Company has not included or requested recovery in this case of the 12 capital expenses it expects to spend over the next three years for the new 13 Customer Connect project. However, the Company has requested recovery of 14 the operating expenses it expects to spend over the next three years. If the 15 Company does not recover operating expenses in the year they are incurred, 16 the Company has no future opportunity to recover those costs absent a deferral 17 approved by the Commission. Company witness Hunsicker, in both her direct 18 and rebuttal testimony, details the benefits the system will provide to 19 customers and the Company's commitment to incur the costs through signed 20 contracts. Public Staff witness Floyd states on page 23 of his testimony that 21 he supports the Company's implementation of the Customer Connect project. 22 Removing from this case the operating expenses needed to implement the REBUTTAL TESTIMONY OF LAURA BATEMAN DUKE ENERGY PROGRESS, LLC Capital expenses Page 27 DOCKET NO. E-2, SUB 1142 1 project is the same as denying the Company the opportunity to recover those 2 costs. 3 An alternative that would still allow the Company to recover these 4 costs is for the Commission to approve the establishment of regulatory asset 5 and grant the Company permission to defer to such asset the incremental 6 operating expenses incurred related to the Customer Connect project, 7 including a carrying charge on the deferred costs, until the Company's next 8 general rate case. Department of Defense witness Cannady on page 29 of her 9 testimony recommends a similar deferral of Customer Connect costs. This 10 would be a reasonable alternative to the Company's adjustment related to 11 Customer Connect. 12 Line 17 - Adjust aviation expenses 13 The Company opposes this adjustment. In its initial filing, the Company 14 removed 40.24% of the Company's operating and maintenance costs 15 ("O&M") related to corporate aviation to account for flights that may not be 16 related to provision of electric service. The Public Staff is proposing to 17 remove 75.55% of the O&M. First, Public Staff witness Peedin states that 18 based on her review of the flight logs, "[s]ome of these flights appear to be 19 unrelated to the provision of utility service; in other instances, and the costs of 20 the flights have been incorrectly allocated." All of the costs of the corporate 21 aircraft have been allocated in accordance with the Company's filed cost 22 allocation manual. The Company does not have costs for specific flights, but REBUTTAL TESTIMONY OF LAURA BATEMAN DUKE ENERGY PROGRESS, LLC Page 28 DOCKET NO. E-2, SUB 1142 1 rather has the overall costs of maintaining and operating the corporate aircraft. 2 These costs have been correctly allocated, and witness Peedin has offered no 3 evidence that they have not been. Witness Peedin goes on to say, "[t]he 4 Company has not justified the costs of using Company-owned aircraft rather 5 than purchasing tickets for commercial flights." Among the flights that Public 6 Staff witness Peedin has proposed excluding are flights for senior leaders to 7 meet with employees and customers throughout the Company's service 8 territory. The biggest benefit of corporate aircraft is the time savings for 9 senior leaders. Some of the Company's plants are at locations that are not 10 easily accessible through commercial flights, so a commercial flight might 11 entail additional drive time after the flight. 12 aircraft, passengers can arrive 15 minutes before the flight, compared to the 13 recommended two hours for commercial flights, and fly to the closest airport 14 to their business destination. Given that the Company has already removed 15 40.24% of the costs of corporate aircraft, the additional reductions proposed 16 by witness Peedin are inappropriate. 17 Line 20 - Remove Duke-Piedmont costs to achieve (CTAs) 18 The Company opposes this adjustment. On pages 24-25 of her testimony, 19 witness Peedin states that the costs should be excluded because DEP did not 20 ask for them in the right way. She includes an excerpt from the Commission's 21 order in the Piedmont merger docket that specifically addresses cost recovery 22 for capital costs associated with achieving merger savings. The costs that REBUTTAL TESTIMONY OF LAURA BATEMAN DUKE ENERGY PROGRESS, LLC In addition, with corporate Page 29 DOCKET NO. E-2, SUB 1142 1 witness Peedin has removed are operating expenses, not capital costs. The 2 merger order does not specifically address cost recovery for operating 3 expenses associated with achieving merger savings. As discussed previously 4 in response to the Customer Connect recommendations, operating expenses 5 are different from capital costs. The Company cannot simply capitalize and 6 depreciate operating expenses like witness Peedin suggests. However, also as 7 discussed in response to the Customer Connect recommendations, a deferral 8 order from the Commission can allow the Company to treat these costs like 9 capital for rate making purposes. Should the Commission decide to exclude 10 these expenses from recovery in this case, the Company requests permission 11 to establish a regulatory asset and to defer to such asset the incremental 12 operating expenses associated with achieving merger savings, including a 13 return on the deferred costs, until the next rate case. 14 Line 26 - Adjust coal inventory 15 The Company opposes this adjustment. Public Staff witness Metz, on page 9 16 of his testimony, recommends that the amount of coal inventory that should be 17 established for rate making purposes should be set at 30 days using a 70% 18 capacity factor, which is equivalent to 21 days of inventory based on full load 19 burn. If actual inventory exceeds this level, the Company would not be able 20 to recover the cost of maintaining that inventory. 21 inventory level is a dramatic change from the levels that have been previously 22 authorized by this Commission and from the actual levels of inventory the REBUTTAL TESTIMONY OF LAURA BATEMAN DUKE ENERGY PROGRESS, LLC This recommended Page 30 DOCKET NO. E-2, SUB 1142 1 Company has maintained. In Docket No. E-2, Sub 1023, the Commission has 2 approved cost recovery in base rates of coal inventory levels at 40 days based 3 on full load burn. The Company's actual inventory at the end of the test 4 period was 51 days, and the Company made a pro forma adjustment to reduce 5 it to a target level of 40 days. Company witness Miller discusses why this 6 recommended decrease in coal inventory levels will have negative supply and 7 operational impacts and is not appropriate. While the Company strongly 8 opposes a decrease in the target inventory level, should the Commission 9 decide to lower the target level of days of inventory, it would be unfairly 10 punitive to not allow a Coal Inventory rider similar to that approved in DE 11 Progress' last general rate case. 12 Company to recover its costs of the current target level until it is reasonably 13 able to reduce those levels to whatever new target is set. 14 Line 30 - Adjust sponsorships & donations 15 The Company opposes this adjustment. Per page 29 of her testimony, witness 16 Peedin adjusted O&M expenses to remove $423,000 in amounts paid to the 17 U.S. Chamber of Commerce and other chambers of commerce, based on 18 detailed general ledger data provided by the Company in response to Data 19 Request No. 11, Item 3. Witness Peedin argues that these expenses should be 20 disallowed because they do not represent actual costs of providing electric 21 service to customers. However, Chambers of Commerce promote business 22 and economic development which in turn helps to retain and attract customers REBUTTAL TESTIMONY OF LAURA BATEMAN DUKE ENERGY PROGRESS, LLC The rider would be necessary for the Page 31 DOCKET NO. E-2, SUB 1142 1 to our service territory. Funds paid to Chambers of Commerce that are not 2 specified as a donation or lobbying on the Chamber invoice are generally 3 assumed to be in support of business or economic development and are 4 considered to be properly charged as a utility expense to FERC account 912, 5 Demonstrating and Selling Expenses, which contains the following as the 6 primary guidance for the use of this account: 7 8 9 10 11 12 "This account shall include the cost of labor, materials used and expenses incurred in promotional, demonstrating, and selling activities, except by merchandising, the object of which is to promote or retain the use of utility services by present and prospective customers." 13 The Company believes that amounts paid to Chambers of Commerce fit 14 within the definition of FERC account 912, which is a utility operating 15 expense account that should be included in the Company's cost of providing 16 electric service to customers. Therefore, witness Peedin's exclusion of these 17 charges from O&M is not appropriate. 18 Additionally, further analysis of the data in this response shows that, of the 19 $423,000 originally recorded, the Company subsequently recorded journal 20 entries to reclassify $76,000 of the charges to FERC Account 426, which is 21 excluded from cost of service, leaving $347,000 in the Company's test period 22 O&M related to the items that witness Peedin selected for disallowance. 23 Therefore, if the charges are removed, the most that should be excluded from 24 expenses using witness Peedin's selection criteria is $347,000 ($210,000 NC 25 retail portion). REBUTTAL TESTIMONY OF LAURA BATEMAN DUKE ENERGY PROGRESS, LLC Page 32 DOCKET NO. E-2, SUB 1142 1 Line 31 - Adjust lobbying expense 2 The Company opposes this adjustment. On page 26 of her testimony, witness 3 Peedin states that she applied the "but for" test in a Formal Advisory 4 Commission of the State Ethics Commission. 5 discovery (Company Request 3-6(c)) for an explanation of why each charge 6 she recommended excluding did not meet the "but for test," she responded: 7 8 9 10 11 12 13 14 15 However, when asked in "The Public Staff did not do an account-by-account review of DEP's Federal government, State government, and stakeholder engagement expenses for purposes of applying the "but for" test. We instead reviewed the job descriptions the Company provided in response to DR 12-2, and decided on a departmental basis whether the department work was lobbyingrelated or not. We concluded that Federal and State were 100% lobbying, and Stakeholder was 50%." 16 This approach appears to be very similar to the approach the Public Staff used, 17 and the Commission rejected, in the Dominion rate case, E-22 Sub 479. On 18 page 71 of the order, the Commission stated: 19 20 21 22 23 24 25 "the Commission also finds that the Public Staff's 50% exclusion adjustment, based on its overall conclusion upon an apparent cursory review with selective highlighting of job descriptions/roles, is an overly broad, very general approach that is not sufficiently supported by the evidence to justify such a 50% adjustment in this proceeding." 26 In 2016, the Company engaged a third party consulting company to perform a 27 detailed time study for the purposes of determining the percentage of time 28 certain individuals spent on lobbying activities per the federal definition in 29 Code of Federal Regulations ("CFR") Section 367.4264. The definition went REBUTTAL TESTIMONY OF LAURA BATEMAN DUKE ENERGY PROGRESS, LLC Page 33 DOCKET NO. E-2, SUB 1142 1 beyond direct contact with legislators and included research, planning, and 2 networking activities to related to lobbying efforts. A report with the results 3 of the study was delivered to the Company in August 2016, and the Company 4 booked journal entries to ensure that the 2016 labor costs were aligned with 5 the results of the independent study. The results are that in the test period, the 6 company booked below the line 66% of the expenses for federal affairs, 75% 7 of the expenses state government affairs, and 10% of the expenses for 8 stakeholder engagement. No further adjustments are necessary or justified. 9 Q. STAFF'S ADJUSTMENTS TO WORKING CAPITAL. 10 11 PLEASE DISCUSS THE COMPANY'S RESPONSE TO THE PUBLIC A. The amount of these adjustments are driven by the values of all of the other 12 adjustments in the case and the proposed revenue increase: 13 Line 34 - Adjust cash working capital under present rates 14 Line 35 - Adjust cash working capital under proposed rates 15 While the amounts we calculate for these adjustments will be different based 16 on other areas of disagreement, the Company does not have any issues with 17 the method the Public Staff has used to calculate cash working capital 18 adjustments. REBUTTAL TESTIMONY OF LAURA BATEMAN DUKE ENERGY PROGRESS, LLC Page 34 DOCKET NO. E-2, SUB 1142 III. 1 2 Q. ARE THERE ANY ISSUES RAISED BY OTHER INTERVENING PARTIES THAT YOU WOULD LIKE TO ADDRESS? 3 4 ISSUES RAISED BY OTHER INTERVENORS A. Yes. I would like to address several issues raise by Department of Defense 5 witness Cannady and one issue raised by Carolina Utility Customers 6 Association, Inc. ("CUCA") witness O'Donnell. 7 Q. DO YOU AGREE WITH WITNESS CANNADY'S 8 RECOMMENDATION RELATED TO THE ASHEVILLE COMBINED 9 CYCLE PROJECT? 10 A. No. Witness Cannady states that the Construction Work in Progress 11 ("CWIP") for the Asheville Combined Cycle project should not be allowed in 12 rate base because the plant is not yet "used and useful." 19 The Company is 13 seeking to include the CWIP for this project, as a base load generation plant, 14 in rate base under the provisions of N.C. Gen. Stat. 62-133. Section (b)(1) of 15 the statute states: 16 In fixing such rates, the Commission shall: 17 (1) Ascertain the reasonable original cost of the public utility's 18 property used and useful.... In addition, construction work in 19 progress may be included in the cost of the public utility's property 20 under any of the of the following circumstances: One of the circumstances listed is: 21 19 Direct Testimony of Constance T. Cannady at 7-9. REBUTTAL TESTIMONY OF LAURA BATEMAN DUKE ENERGY PROGRESS, LLC Page 35 DOCKET NO. E-2, SUB 1142 1 b. For baseload electric generating facilities, reasonable and prudent 2 expenditures shall be included pursuant to subdivisions (2) or (3) of 3 G.S. 62-110.1(f1), whichever applies, subject to the provisions of 4 subdivision (4a) of this subsection. 5 The CWIP that the Company has included in rate base clearly meets these 6 criteria, and therefore, is appropriate to include in rate base. 7 Q. DO YOU AGREE WITH WITNESS CANNADY'S 8 RECOMMENDATION RELATED TO THE ACCRUAL FOR END OF 9 LIFE NUCLEAR MATERIALS AND SUPPLIES? 10 A. No. Witness Cannady states the increase in the accrual should not be allowed 11 because the Company has not offered "definitive evidence" for its estimate of 12 level of inventory at the end of life. 20 The methodology used to develop the 13 proposed accrual is consistent with the method used in the last rate case, and 14 is only intended to be an estimate. Company witness Gillespie, in his rebuttal 15 testimony, addresses why two of the main assumptions that witness Cannady 16 challenges are reasonable assumptions for estimating purposes. 17 Company includes the accrual amounts collected from customers as a 18 reduction to rate base, and, as stated in the last rate case, the annual accrual 19 amount can be reviewed and adjusted, if needed, in each future general rate 20 case before the end of the plant's life. 20 The Id. at 9-11. REBUTTAL TESTIMONY OF LAURA BATEMAN DUKE ENERGY PROGRESS, LLC Page 36 DOCKET NO. E-2, SUB 1142 1 Q. DO YOU AGREE WITH RECOMMENDATION 3 TREATMENT OF DEFERRED ENVIRONMENTAL AND STORM 4 RESTORATION COSTS? A. TO THE CANNADY'S 2 5 RELATED WITNESS RATE BASE No. For the rate base component, witness Cannady recommends using the 6 average unamortized balance over the next five years. 21 As stated on page 14 7 of her testimony, witness Cannady selects five years "based on the estimated 8 number of years between rates established in this proceeding and the time 9 frame in which DEP is likely to file another general rate proceeding." 10 However, witness Cannady has no way of knowing when the Company is 11 likely to file another general rate proceeding. She states the last general rate 12 case resulted in rates implemented in 2013 and this case will result in rates 13 implemented in 2018; therefore, a five-year period should be used. However, 14 DE Progress's rate case before that was in 1988, indicating 25 years between 15 rate cases, using witness Cannady's logic. Furthermore, the DE Progress rate 16 case before that was in 1987, indicating only one year in between rate cases. 17 DE Carolinas has filed North Carolina rate cases in 2007, 2009, 2011, and 18 2013, indicating two years between rate cases. 19 prediction of when the Company's next rate case will be can be derived; 20 therefore, any such prediction should not be used in the calculation of the 21 level of rates in this proceeding. The rate base approach proposed by the 21 As such, no accurate Id. at 11-15. REBUTTAL TESTIMONY OF LAURA BATEMAN DUKE ENERGY PROGRESS, LLC Page 37 DOCKET NO. E-2, SUB 1142 1 Company is consistent with how the Company has treated regulatory assets 2 and liabilities in the past, where the balance is reduced by the first year of 3 amortization expense, and is consistent with how post-test year plant 4 additions have traditionally been treated in North Carolina, with the plant 5 balance reduced by the first year of depreciation expense. 6 Q. DO YOU AGREE WITH WITNESS CANNADY'S 7 RECOMMENDATION RELATED TO PENSION AND OTHER POST 8 EMPOYMENT BENEFITS ("OPEB")? 9 A. No. Witness Cannady recommends removing portions of pension expense. 22 10 Specifically, she recommends the disallowance of non-qualified pension 11 expense, which is addressed in the rebuttal testimony of Company witness 12 Silinski. She also recommends adding back an expiring amortization related to 13 Other Post-Employment Benefits ("OPEB") that the Company removed in its 14 adjustment to benefits costs. Witness Cannady argues that the adjustment to 15 remove the expiring amortization should not be allowed because other 16 potential, future changes to OPEB expenses are not known at this time. 17 However, that is not sufficient reason to exclude a change that is known. This 18 adjustment is similar to the adjustment that the Company made to remove 19 expiring amortizations in its last rate case 23 and that DE Carolinas has made in 20 its rate case filed this year 24. 22 Id. at 24-26. Direct Testimony of Laura A. Bateman, Docket E-2, Sub 1023 at 21. 24 Direct Testimony of Jane L. McManeus, Docket E-7, Sub 1146 at 22. 23 REBUTTAL TESTIMONY OF LAURA BATEMAN DUKE ENERGY PROGRESS, LLC Page 38 DOCKET NO. E-2, SUB 1142 1 Q. TURNING TO CUCA WITNESS O'DONNELL, DO YOU AGREE 2 WITH HIS RECOMMENDATION RELATED TO RATE CASE 3 EXPENSES IN THIS CASE? 4 A. No. Witness O'Donnell recommends capping the amount to be recovered for 5 the Company's Return on Equity ("ROE") witness at the level incurred for the 6 Public Staff's ROE witness. First, witness O'Donnell compares the cost of 7 the two witnesses; however, it is not clear that he has the correct cost level for 8 the Public Staff witness. The Company provided an estimate of rate case 9 expenses in discovery that included an estimate for the Public Staff ROE 10 witness based on just a few invoices. The Company had no way of estimating 11 at that point what the total costs would be, and still does not. The estimate 12 provided by the Company in discovery happens to be the same number quoted 13 by witness O'Donnell as the price that the Public Staff "settled on." Second, 14 setting the cost of the two witnesses at the same level does not take into 15 account the additional level of effort required by the Company witness 16 compared to the Public Staff witness. For example, the Company witness 17 typically files two sets of testimony - direct and rebuttal - compared to one 18 set of testimony by the Public Staff witness. As a result, witness O'Donnell's 19 recommendation should be rejected. REBUTTAL TESTIMONY OF LAURA BATEMAN DUKE ENERGY PROGRESS, LLC Page 39 DOCKET NO. E-2, SUB 1142 IV. 1 2 Q. WHY ARE YOU INCLUDING IN THIS TESTIMONY REVISED BATEMAN EXHIBIT 1? 3 4 REVISED BATEMAN EXHIBIT 1 A. In Bateman Supplemental testimony, I indicated DE Progress will file an 5 updated Bateman Exhibit 1 at the time of the hearing which will incorporate 6 the additional cost of service adjustments reflected in Bateman Supplemental 7 Exhibit 1, as well as possible other adjustments to cost of service to the extent 8 the actual changes are based on circumstances and events occurring up to the 9 time the hearing is closed. Revised Bateman Exhibit 1 is similar to Bateman 10 Exhibit 1 and incorporates the updates to cost of service that I included in 11 Bateman supplemental direct testimony and Bateman Supplemental Exhibit 1. 12 Q. DOES REVISED BATEMAN EXHIBIT 1 REFLECT ANY CHANGE IN 13 THE REVENUE REQUIREMENT SOUGHT BY THE COMPANY IN 14 THIS PROCEEDING? 15 A. No, not at this time. DE Progress will file an updated Bateman Exhibit 1 at 16 the time of the hearing, which may incorporate additional possible 17 adjustments to cost of service to the extent the actual changes are based on 18 circumstances and events occurring up to the time the hearing is closed. V. 19 20 Q. THIS CONCLUDE YOUR PRE-FILED REBUTTAL TESTIMONY? 21 22 DOES CONCLUSION A. Yes. REBUTTAL TESTIMONY OF LAURA BATEMAN DUKE ENERGY PROGRESS, LLC Page 40 DOCKET NO. E-2, SUB 1142 DUKE ENERGY PROGRESS, LLC OPERATING INCOME FROM ELECTRIC OPERATIONS FOR THE TEST PERIOD ENDED DECEMBER 31, 2016 (Thousands of Dollars) Line No. Total Company Per Books (a) (Col. 1) Description 1 Electric operating revenue 2 3 4 5 6 7 8 9 Electric operating expenses: Operation and maintenance: Fuel used in electric generation Purchased power Other operation and maintenance expense Depreciation and amortization General taxes Interest on customer deposits Net income taxes Amortization of investment tax credit $ Per Books (Col. 2) 5,265,756 (b) $ 1,283,797 546,338 1,473,062 682,234 153,758 9,342 (b) 305,753 (5,305) 3,551,924 North Carolina Retail Operations Revenue and Before Expenses from Accounting Proposed Proposed Adjustments (c) Increase Increase (d) (Col. 3) (Col. 4) (Col. 5) $ 780,539 354,140 989,958 483,899 100,952 8,662 247,213 (3,323) 3,142,910 $ $ 3,597,930 635,925 322,537 1,039,020 593,780 99,490 8,662 104,381 (2,093) 167,874 - 635,925 322,537 1,040,475 593,780 99,490 8,662 272,255 (2,093) (160,338) 2,801,702 169,329 2,971,031 1,455 11 Operating income $ 816,778 $ 589,885 $ (248,676) $ 341,208 $ 12 Original cost rate base $ 12,915,879 $ 8,465,228 $ (248,239) (f) $ 8,216,989 $ Notes: (a) (b) (c) (d) (e) 455,020 (144,614) (31,603) 49,062 109,881 (1,462) (142,832) 1,230 Total electric operating expenses Rate of return on North Carolina retail rate base 2,962,039 $ 10 13 4,448,978 (409,014) After Proposed Increase (Col. 6) 6.97% 4.15% 285,691 $ 626,899 30,596 (e) $ 8,247,585 7.60% From Form E-1, Item 45a Reclassifies interest on customer deposits to electric operating expense. From Page 4, Line 36. From Page 2. Reflects an increase in operating funds per lead-lag study for the adjusted total requirements in this rate case excluding the portion already adjusted in Col. 3, Line 12. (f) From Page 4, Line 9 Revised Bateman Exhibit 1 Page 1 DUKE ENERGY PROGRESS, LLC CALCULATION OF ADDITIONAL REVENUE REQUIREMENT FOR THE TEST PERIOD ENDED DECEMBER 31, 2016 (Thousands of Dollars) North Carolina Retail Operations Line No. 1 Long-term debt 2 Members' equity (a) 3 Dec. 31, 2016 Amount (Col. 1) Description Total $ $ Pro forma Ratio (Col. 2) 6,907,045 47.00% 7,644,578 53.00% 14,551,623 100.00% Retail Rate Base (Col. 3) $ $ Before Proposed Increase Embedded Cost/ Return % (Col. 4) 3,861,985 4.05% 4,355,004 4.24% 8,216,989 (b) Operating Income (Col. 5) $ 156,410 Retail Rate Base (Col. 6) $ 184,798 $ 341,208 (c) $ After Proposed Increase Embedded Cost/ Return % (Col. 7) 3,876,365 4.05% 4,371,220 10.75% Operating Income (Col. 8) $ 156,993 469,906 8,247,585 (b) 626,899 4 Operating income before increase (Line 3, Column 5) 341,208 5 Additional operating income required (Line 3 minus Line 4) 285,691 6 Calculate income tax on Incremental interest expense due to increase in cash working capital in proposed revenue (NC3500 Summary, Line 14 Proposed) 7 Uncollectible (.18%), regulatory fee (.14%) and income taxes (37.0599%) 8 Additional revenue requirement $ 455,020 9 Annual EDIT Rider recommended by Company for five year period $ (35,487) 10 Company recommended revenue requirement for first five years $ 419,533 (217) 169,546 Notes: (a) The equivalent of common equity for a limited liability company. (b) From Page 1, Line 12, Columns 4 & 6. (c) From Page 1, Line 11, Column 4. Revised Bateman Exhibit 1 Page 2 DUKE ENERGY PROGRESS, LLC DETAIL OF ACCOUNTING ADJUSTMENTS-NORTH CAROLINA RETAIL FOR THE TEST PERIOD ENDED DECEMBER 31, 2016 (Thousands of Dollars) Line No. Electric Operating Revenue (Col. 1) (368,354) Description 1 Annualize Retail revenues for current rates 2 Adjust Other Revenue (3,136) 3 Normalize for weather (9,000) 4 Annualize revenues for customer growth 10,758 5 Eliminate unbilled revenues 6 Update fuel costs to approved rate 7 Eliminate costs recovered through non-fuel riders 8 Annualize Depreciation on year end plant balances (a) 9 Annualize property taxes on year end plant 10 Adjust for new depreciation rates (18,051) (a) Purchased Power (Col. 3) - - Other O&M Expense (Col. 4) (1,178) - - (4,005) Depreciation and Amortization (Col. 5) General Taxes (Col. 6) Amortization of ITC (Col. 8) - - (4) - - (1,162) - - (29) - - (1,840) - 2,697 - 34 - - 2,975 - - - - - - (6,690) - - - - 54,732 - 61,410 - (143,306) (55,126) (6,726) - - - - - - 15,662 - (5,804) 1,230 - - - - - 2,669 (989) - (a) - - - - 54,421 - (20,168) - 11 Adjust for post test year additions to plant in service (a) - - - - 28,389 2,330 (11,384) - 12 Adjust for Asheville base load CWIP (a) - - - - - - 13 Adjust for transmission merger mitigation project (a) - - - - - - - - 14 Adjust nuclear decommissioning expense - - - - 9,902 - (3,670) - 15 Adjust reserve for end of life nuclear costs (a) - - - - 6,593 - (2,443) - 16 Adjust coal inventory (a) - - - - - - 17 Adjust for Harris COLA - - - - 5,666 - (2,100) - 18 Amortize deferred environmental costs - - - - 48,378 - (17,929) - 19 Adjust for ongoing environmental costs - - - 129,115 - - (47,850) - 20 Normalize for storm costs 13,818 - - 22,769 - - (3,317) - 21 Annualize O&M non-labor expenses - - - 2,762 - - (1,024) - (a) (138,905) (4,379) $ Income Taxes 37.0599% (Col. 7) (136,076) - (a) (35,049) Fuel Used in Electric Generation (Col. 2) - - - - Revised Bateman Exhibit 1 Page 3 DUKE ENERGY PROGRESS, LLC DETAIL OF ACCOUNTING ADJUSTMENTS-NORTH CAROLINA RETAIL FOR THE TEST YEAR ENDED DECEMBER 31, 2016 (Thousands of Dollars) Line No. Fuel Used in Electric Generation (Col. 2) Electric Operating Revenue (Col. 1) Description Purchased Power and Net Interchange (Col. 3) Wages Benefits Materials Etc. (Col. 4) Depreciation and Amortization (Col. 5) Income Taxes 37.0599% (Col. 7) General Taxes (Col. 6) Amortization of ITC (Col. 8) 22 Normalize O&M labor expenses - - - (6,122) - 280 23 Update benefits costs - - - 39,582 - - 24 Levelize nuclear refueling outage costs - - - (2,199) - - 815 - 25 Amortize rate case costs - - - - - (195) - 26 Adjust aviation expenses - - - 457 - 27 Adjust for change in NCUC regulatory fee - - - (457) - 28 Adjust purchased power - - 29 Adjust O&M for executive compensation - - - 30 Adjust for Customer Connect - - 31 Adjust for Long Term Service Agreements - 32 Adjust for Deferred Tax Liability 33 (a) 526 (1,217) - (15) 2,165 - (14,669) - 858 376 - - - - 11,712 - (1,783) - - 661 - - 7,947 - - (2,945) - - - (3,016) - - 1,118 - - - - - - - - - Adjust for tax rate change - - - - - - (1,561) - 34 Synchronize interest expense with end of period rate base - - - - - - 3,263 - 35 Adjust cash working capital for present revenue annualized and proposed revenue - - - - - - 105 - 36 37 Correct Lobbying charge Total adjustments (a) (a) $ (409,014) $ (144,614) (31,603) $ (31,603) $ (77) 49,062 $ 109,881 $ (1,462) $ 28 (142,832) $ 1,230 Notes: (a) Adjustments to rate base shown on pages 4-4d. Revised Bateman Exhibit 1 Page 3 cont'd DUKE ENERGY PROGRESS, LLC ORIGINAL COST RATE BASE-ELECTRIC OPERATIONS DECEMBER 31, 2016 (Thousands of Dollars) Line No. Description Page Reference 1 Electric plant in service 4a 2 Less: Accumulated depreciation and amortization 4b 3 Net electric plant 4 Add: Materials and supplies 5 6 Working capital investment Total Company Per Books (Col. 1) $ Construction work in progress 9 Total $ 16,624,154 $ (183,659) $ 14,036,208 9,126,842 (192,459) 8,934,383 4c 1,162,558 786,038 (145,015) 641,023 4d 1,200,341 741,674 (45,353) 696,321 (7,506,112) (3,380,514) (2,122,336) 47,396 (2,074,940) (102,714) (66,990) - (66,990) $ (8,800) 16,440,495 (7,497,312) Operating reserves 8 25,049,935 North Carolina Retail Operations Accounting As Adjustments Adjusted (Col. 3) (Col. 4) (11,013,727) Less: Accumulated deferred taxes 7 Per Books (Col. 2) 12,915,879 $ 8,465,228 87,192 $ (248,239) 87,192 $ 8,216,989 Revised Bateman Exhibit 1 Page 4 DUKE ENERGY PROGRESS, LLC ELECTRIC PLANT IN SERVICE AT ORIGINAL COST DECEMBER 31, 2016 (Thousands of Dollars) Line No. Total Company Per Books (Col. 1) Description Production Plant 2 Transmission Plant 2,463,973 1,442,697 109,852 1,552,549 3 Distribution Plant 5,886,275 5,097,863 10,401 5,108,263 4 General Plant 613,022 442,331 22,863 465,195 5 Intangible Plant 408,346 271,400 24,273 295,673 24,610,547 16,356,961 (153,751) 16,203,210 439,389 267,193 (29,908) 237,285 7 8 Subtotal Nuclear Fuel (Net) Total electric plant in service $ 15,238,931 25,049,935 $ North Carolina Retail Operations Accounting As Adjustments Adjusted (Col. 3) (Col. 4) 1 6 $ Per Books (Col. 2) $ 9,102,670 16,624,154 $ $ (321,140) (183,659) $ $ 8,781,530 16,440,495 Revised Bateman Exhibit 1 Page 4a DUKE ENERGY PROGRESS, LLC ACCUMULATED DEPRECIATION AND AMORTIZATION - ELECTRIC PLANT IN SERVICE DECEMBER 31, 2016 (Thousands of Dollars) No. Description 1 Production Reserve 2 Transmission Reserve 3 Distribution Reserve 4 5 6 Total Company Per Books (Col. 1) $ (6,807,632) Per Books (Col. 2) $ North Carolina Retail Operations Accounting As Adjustments Adjusted (Col. 3) (Col. 4) (4,161,088) $ (67,852) $ (789,438) (467,399) (2,899,918) (2,511,501) General Reserve (243,874) (175,969) (14,484) (190,453) Intangible Reserve (272,864) (181,354) 9,822 (171,533) Total $ (11,013,727) $ (7,497,312) (5,052) (4,228,940) (472,451) 68,766 $ (8,800) (2,442,735) $ 7 The annual composite rates based on the new depreciation study for computing depreciation (straight-line method) are shown below: 8 9 10 11 12 13 14 15 Steam production plant Nuclear production plant Hydro production plant Other production plant Transmission plant Distribution plant General plant Intangible plant (7,506,112) 3.83% 2.73% 3.56% 4.55% 1.95% 2.64% Various 20.00% Revised Bateman Exhibit 1 Page 4b DUKE ENERGY PROGRESS, LLC MATERIALS AND SUPPLIES DECEMBER 31, 2016 (Thousands of Dollars) Line No. Total Company Per Books (Col. 1) Description Per Books (Col. 2) North Carolina Retail Operations Accounting As Adjustments Adjusted (Col. 3) (Col. 4) Fuel Stock: 1 Coal 2 Oil 3 4 5 $ Total fuel stock Other electric materials and supplies and stores clearing Total Materials and Supplies $ 147,383 $ 89,624 $ (22,886) $ 66,738 114,903 68,555 262,287 158,179 (22,886) 135,293 900,271 627,859 (122,129) 505,730 1,162,558 $ 786,038 68,555 $ (145,015) $ 641,023 Revised Bateman Exhibit 1 Page 4c DUKE ENERGY PROGRESS, LLC WORKING CAPITAL INVESTMENT DECEMBER 31, 2016 (Thousands of Dollars) Line No. Total Company Per Books (Col. 1) Description 1 Investor advanced funds: Operating funds per lead-lag study 2 Per Books (Col. 2) North Carolina Retail Operations Accounting As Adjustments Adjusted (Col. 3) (Col. 4) 237,214 154,568 Unamortized Debt 46,441 30,261 3 Regulatory Assets 768,262 437,870 4 Other 289,473 240,360 1,341,390 863,059 5 Total investor advanced funds 6 Less: customer deposits 7 Total working capital investment (141,049) $ 1,200,341 (14,869) $ 741,674 139,699 (30,484) (45,353) (121,384) (45,353) With Rev Incr (Col. 6) 30,596 170,295 30,261 30,261 407,386 407,386 240,360 240,360 817,706 $ Impact of Rev Incr (Col. 5) 30,596 848,302 (121,384) $ 696,321 (121,384) $ 30,596 $ 726,917 Revised Bateman Exhibit 1 Page 4d Bateman Rebuttal Exhibit 1 Page 1 of 1 DUKE ENERGY PROGRESS Docket No. E-2, Sub 1142 North Carolina Retail Operations REVENUE IMPACT OF ADJUSTMENTS For the test year ended December 31, 2016 (In Thousands) Line No. Item Public Staff Position (Col. 1) Accepted/ Not Opposed (Col. 2) $ $ 1 2 3 Revenue requirement increase per Company application Revenue impact of Company supplemental adjustments Revenue requirement increase per Company after supplemental filings 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 Revenue impact of adjustments: Change in equity ratio from 53% to 50% Change in debt cost rate from 4.17% to 4.050% Change in return on equity from 10.75% to 9.2% Change in retention factor Update plant and accumulated depreciation to August 31, 2017 Update revenues to August 31, 2017 Adjust distribution vegetation management Adjust Harris COLA annual amortization Adjust allocations by DEBS to DEP Adjust for lost industrial revenue due to Hurricane Matthew Remove EDIT refund from base rates for treatment as a rider Remove Customer Connect expenses Adjust Aviation expenses Adjust executive compensation Adjust outside services Remove Duke-Piedmont costs to achieve (CTAs) Adjust storm costs Remove ongoing environmental costs Adjust depreciation rates Adjust incentives Adjust deferred environmental costs Adjust coal inventory Adjust Sutton CT blackstart plant cost Adjust EOL nuclear materials & supplies reserve expense Adjust Mayo ZLD plant cost Adjust sponsorships & donations Adjust lobbying expense Adjust Board of Directors expense Adjust inflation to August 31, 2017 Adjust cash working capital under present rates Adjust cash working capital under proposed rates Rounding Total revenue impact of adjustments (13,943) (21,919) (4,073) (3,409) (505) (2,072) 37,284 (7,973) (1,084) (239) (134) (3,831) (21,122) (129,529) (30,644) (17,960) (53,291) (2,968) (519) (355) (2,523) (257) (601) (1,395) 5,362 486 (3,103) 2 $ (416,754) $ Increase in Revenue Requirement $ $ $ 477,495 (57,958) 419,537 $ (31,479) (4,877) (100,083) 2,783 Opposed (Col. 3) 477,495 (57,958) 419,537 (4,584) * (31,479) (293) (100,083) (13,943) (21,919) (4,073) (3,409) (1,686) 38,517 * (158) (68) 1,462 * 180 * 245 * 2 30,501 450,038 (505) (386) (1,233) (7,973) (1,084) (81) (66) (3,831) (21,122) (129,529) (30,644) (17,960) (54,753) (2,968) (519) (355) (2,523) (257) (601) (1,395) 5,362 306 (3,348) $ (447,255) $ (447,255) Additional adjustments added by the Company: Adjust for plant adds through September, 2017 4,982 * Company revised revenue requirement increase Annual EDIT Rider (Public Staff 2 years/Company 5 years) Recommended revenue requirement with rider * Impact using Company proposed ROE and equity ratio $ (79,842) (77,059) (4,982) $ 455,020 $ (452,237) $ (35,487) * (44,355) 419,533 $ (496,592) Duke Energy Progress Docket No. E-2, Sub 1142 North Carolina Retail Operations Bateman Rebuttal Exhibit 2 Schedule 1 CALCULATION OF LEVELIZED EDIT RIDER CREDIT For the Test Year Ended December 31, 2016 (in Thousands) Line No. 1 2 3 4 5 6 7 Item Total NC retail regulatory liability to be amortized Annuity factor Levelized rider EDIT regulatory liability (L1 / L2) One minus composite income tax rate Net operating income effect (L3 x L4) Retention factor Levelized rider EDIT credit (L5 / L6) Year 1 Revenue Requirement (a) ($150,466) 4.2536 (35,374) 62.9401% (22,264) 0.6273883 ($35,487) Year 2 Year 3 Year 4 Year 5 Revenue Revenue Revenue Revenue Requirement Requirement Requirement Requirement (b) (c) (d) (e) ($150,466) 4.2536 (35,374) 62.9401% (22,264) 0.6273883 ($35,487) ($150,466) 4.2536 (35,374) 62.9401% (22,264) 0.6273883 ($35,487) ($150,466) 4.2536 (35,374) 62.9401% (22,264) 0.6273883 ($35,487) ($150,466) 4.2536 (35,374) 62.9401% (22,264) 0.6273883 ($35,487) Total Revenue Requirement (f) ($176,870) 62.9401% (111,322) 0.6273883 ($177,437) Duke Energy Progress Docket No. E-2, Sub 1142 North Carolina Retail Operations CALCULATION OF ANNUITY FACTOR FOR EDIT LIABILITY RIDER For the Test Year Ended December 31, 2016 (in Thousands) Line No. 1 2 3 4 5 6 Item 5 1/ 1 6.896% Present value of 1 dollar over number of years with with 1 payment per year 1 plus (interest rate divided by two) Annuity factor (L4 x L5) 4.1117 1.0345 4.2536 After Tax Rate of Return Debt Equity Total 1/ Amount Annuity Factor Number of years Payment per period After tax rate of return (L9) Capital Structure (a) 7 8 9 Bateman Rebuttal Exhibit 2 Schedule 1(a) 47.00% 53.00% 100.00% Rider period recommended by Company Cost Rates (b) 4.050% 10.750% Overall Rate of Return (c) 1.904% 5.698% 7.601% 6/ Net of Tax Rate (d) 1.198% 5.698% 6.896% BATEMAN REBUTTAL EXHIBIT 3 Page 1 of 40 April 12, 2017 VIA ELECTRONIC FILING AND HAND DELIVERY M. Lynn Jarvis Chief Clerk North Carolina Utilities Commission 4325 Mail Service Center Raleigh, North Carolina 27699-4300 RE: Duke Energy Progress, LLC's Reply Comments Docket No. E-2, Sub 1131 Dear Ms. Jarvis: I enclose Duke Energy Progress, LLC's Reply Comments for filing in connection with the referenced matter. Pursuant to the Commission's March 23, 2017 Order Requesting Filing of Workpapers, I also enclose a compact disc containing the associated workpapers in electronic format, with formulas intact. Thank you for your attention to this matter. If you have any questions, please let me know. Sincerely, Lawrence B. Somers Enclosures cc: Parties of Record Dwight Allen, Esquire BATEMAN REBUTTAL EXHIBIT 3 Page 2 of 40 CERTIFICATE OF SERVICE I certify that a copy of Duke Energy Progress' Reply Comments, in Docket No. E-2, Sub 1131, has been served by electronic mail, hand delivery or by depositing a copy in the United States mail, postage prepaid to the following parties of record: David Drooz, Chief Counsel Bob Gillam, Staff Attorney Public Staff North Carolina Utilities Commission 4326 Mail Service Center Raleigh, NC 27699-4300 david.drooz@psncuc.nc.gov bob.gillam@psncuc.nc.gov Ralph McDonald Adam Olls Bailey & Dixon, LLP PO Box 1351 Raleigh, NC 27602-1351 rmcdonald@bdixon.com aolls@bdixon.com Robert Page Crisp, Page & Currin, LLP 410 Barrett Dr., Suite 205 Raleigh, NC 27609-6622 rpage@cpclaw.com Sharon Miller Carolina Utility Customer Assoc., Inc. 1708 Trawick Road, Suite 210 Raleigh, NC 27604 smiller@cucainc.org This is the 12th day of April, 2017. By: ________________________________ Lawrence B. Somers Deputy General Counsel Duke Energy Corporation P.O. Box 1551/NCRH 20 Raleigh, North Carolina 27602 Tel 919.546.6722 bo.somers@duke-energy.com BATEMAN REBUTTAL EXHIBIT 3 Page 3 of 40 BEFORE THE NORTH CAROLINA UTILITIES COMMISSION DOCKET NO. E-2, SUB 1131 In the Matter of: Petition of Duke Energy Progress, LLC for an Accounting Order to Defer Incremental Storm Damage Expenses Incurred as a Result of the Winter Storm Jonas, Winter Snow and Ice, Summer Thunderstorms, Tropical Storm Hermine and Hurricane Matthew during 2016 ) ) ) ) ) ) ) ) REPLY COMMENTS OF DUKE ENERGY PROGRESS, LLC Duke Energy Progress, LLC ("DEP" or the "Company") hereby submits these Reply Comments in response to the Initial Comments of the Public Staff of the North Carolina Utilities Commission ("Public Staff") filed in the above-referenced proceeding on March 15, 2017. In support thereof, the Company shows the following: INTRODUCTION On December 16, 2016, consistent with North Carolina Utilities Commission ("Commission") Rule R8-27, the Company petitioned the Commission for an accounting order for regulatory and financial accounting purposes authorizing the Company to establish a regulatory asset and defer certain costs incurred in connection with extraordinary 2016 storm costs. On February 3, 2017, DEP filed its Verified Exhibit in Response to Commission Questions, providing the requested information on 2013-2016 storm events, as well as updated cost information for the 2016 storms ("Verified Exhibit"). 1 In its comments, the Public Staff, while recommending the Commission approve a deferral, raises various issues with the Company's petition and ultimately 1 These Reply Comments, containing updated financial information, are also verified by Laura Bateman, Director- Rates and Regulatory Planning. BATEMAN REBUTTAL EXHIBIT 3 Page 4 of 40 recommends a deferral that is less than that requested by DEP. To reach its result, the Public Staff imputed a level of storm expense for 2016 that is in excess of the normal level approved by the Commission in the Company's last general rate case. Specifically, the Public Staff argues that the deferral should not exceed $68.8 million of 2016 storm operating and maintenance expenses, and opposes the deferral of depreciation expense, return on undepreciated capital costs and carrying costs on the total amount deferred. Also, the Public Staff proposes that the Company be required to amortize the costs deferred over a ten-year period beginning in October 2016. While the Company appreciates the Public Staff's support in establishing a regulatory asset, the limitations the Public Staff seeks to impose would deny the Company the ability to recover the costs incurred in excess of the amount of stormrelated expense found by the Commission to be normal in the Company's last general rate case. The Company's December 16, 2016 Petition for an Accounting Order (the "Petition") demonstrated that, absent an approval of its request, it is expected to earn below the return last authorized by the Commission. The limits imposed by the Public Staff would force the Company to face earnings degradation arising from these incremental storm costs, and these effects could impair the Company's financial stability and ability to attract capital on reasonable terms for the benefit of customers. THE COMPANY'S PROPOSED ACCOUNTING ORDER IS APPROPRIATE. 1. The Commission set $12.7 million as the reasonable annual storm costs included in rates, and the Company's restoration efforts and 2016 storm costs were extraordinary under any reasonable comparison. In its Petition, the Company stated the total incremental costs to repair and restore its system far exceeded the level of major storm costs included in the Company's last BATEMAN REBUTTAL EXHIBIT 3 Page 5 of 40 general rate case, Docket No. E-2, Sub 1023, of $12.7 million for the North Carolina retail jurisdiction, and the Company asked only to defer those costs in excess of the $12.7 million level approved by the Commission in that case. The amount of $12.7 million was a pro forma adjustment to test year storm expenses based on an average of actual storm expenses experienced over a ten-year period. Thus, it bears to reason that storm expenses at a normalized $12.7 million would be ordinary expenses and expenses above that would be extraordinary. In fact, DEP experienced extensive storm damage throughout 2016, requiring extraordinary restoration and rebuilding efforts during January, February, June, July, September and October. These extraordinary events culminated in October with Hurricane Matthew, which resulted in damages greater than any other storm in the Company's history. As detailed in the Company's Verified Exhibit, as of February 3, 2017, the Company had incurred approximately $96.2 million in incremental operation and maintenance ("O&M") expense and approximately $47.2 million in capital investments as part of the 2016 restoration efforts. As set forth infra in section 5 of these reply comments, the updated North Carolina retail portion of the 2016 storm costs are now approximately $80.0 million in O&M and $49.0 million in capital. Although the Public Staff recognized the difficulty in dividing the line between normal and extraordinary in its comments, the Public Staff nonetheless took a less reasonable and seemingly arbitrary approach by selecting the highest yearly storm expense in the past 14-year period ($27.4 million) as the dividing line between normal and extraordinary. In other words, the Public Staff apparently adopted a results-oriented approach to rate making and looked at the prior fourteen years of storm expenses to determine the normal range of fluctuation for storm expenses, and randomly decided the BATEMAN REBUTTAL EXHIBIT 3 Page 6 of 40 highest year was a normal fluctuation because five other separate years almost neared that high water mark. In its April 3, 2013 Order Approving in Part and Denying in Part Request for Deferral Accounting in Docket No. E-7, Sub 1029, the Commission stated at pages 1213: In determining whether to allow deferral requests, the Commission has consistently and appropriately based its decision on whether absent deferral, the costs in question would have a material impact on the company's financial condition and in particular, the company's achieved level of earnings. In the case at the hand, the Company has been allowed to recover annual storm expenses of $12.7 million. As demonstrated in DEP's Petition, the expenses incurred in excess of $12.7 million in 2016 will have a material impact on the Company's financial condition and achieved level of earnings. Setting the normal range of fluctuation for storm costs artificially high, as the Public Staff suggests, will also have a material impact on the Company's financial condition and achieved level of earnings. 2. The Regulatory Asset should include depreciation expense, return on undepreciated capital costs and carrying costs on the total amount deferred. In its Verified Exhibit, the Company reported that it incurred approximately $47.2 million of incremental capital costs. In its initial comments, the Public Staff opposed the Company's request for deferral of certain capital items and the carrying costs on the entirety of the deferred costs. Without its requested deferral, DEP will be denied recovery of the incremental depreciation expense associated with those investments, as well as the return on the unamortized portion of the incremental capital investments. The same result applies to the incremental carrying charges on the entirety of the deferred BATEMAN REBUTTAL EXHIBIT 3 Page 7 of 40 costs. In asking that such recovery be denied, the Public Staff simply says that it "is not aware of any Commission precedent supporting deferral of the depreciation expense and associated carrying costs resulting from storm damage." At the same time, however, the Public Staff also failed to offer any precedent from any Commission decision which specifically denied a request for deferral of incremental depreciation expenses and return associated with storm-related capital costs. Incremental depreciation expense is no less a legitimate cost than any other cost. The same is equally true for the return on the unamortized portion of the asset or the incremental carrying costs on other storm-related expenses not yet recovered. The failure to recover those costs has the same financial impacts as the inability to recover O&M expenses and should be treated no differently in the determination of the regulatory asset. 3. Requiring the amortization period to begin in October 2016 would also adversely impact the Company's financial position. The Public Staff also recommends that the amortization period should begin no later than October 2016. The Public Staff argues only that this has been the historical practice of the Commission to begin "single storm" deferrals in the month where the storm occurs. Although historical practice may be of some relevance, it should not be the sole factor used by the Commission in making its decision. Rather, such a decision should be made in the context of the multiple storms that occurred in 2016 and the unprecedented impacts caused by Hurricane Matthew. Unlike most storm deferrals, the Company has committed to filing a general rate case in 2017. As apparent by the comments in this matter, a significant number of issues remain in dispute between DEP and the Public Staff. The general rate case proceeding BATEMAN REBUTTAL EXHIBIT 3 Page 8 of 40 will provide a proper forum to address outstanding issues, including the date for the amortization to begin, the period over which the costs should be amortized, and the rate impact that each scenario will have on the Company and its customers. As the Public Staff notes, because of the frequency and magnitude of the 2016 storms, the deferral request is particularly large. By approving the deferral request submitted by the Company, the Commission can protect the Company's right to petition for recovery of the deferred costs and evaluate economic impacts of its proposal in the context of a general rate proceeding. In addition, more interpretive guidance has been issued by audit firms related to this issue since the Commission last approved a storm deferral petition. In its 2016 Utilities and Power Companies Guide on page 17-15, 2 PricewaterhouseCoopers ("PwC") gives guidance on the following question, "Does an accounting order (without a rate order) provide sufficient support for recognition of a regulatory asset or liability?" In their response, PwC states, "An accounting order to amortize a regulatory asset or other cost with no impact on revenues does not provide the cause and effect relationship between costs and revenues required to create a regulatory asset." The Company's external auditors, Deloitte, in their 2005 Accounting, Financial Reporting and Tax Update publication gave consistent guidance by stating that "Regulatory assets should be amortized over future periods consistent with the related increase in customer revenues." This guidance was reaffirmed in Deloitte's 2012 Regulated Utilities Manual that deferral is appropriate "when it is probable that the costs will be recoverable out of future 2 http://www.pwc.com/us/en/cfodirect/publications/accounting-guides/utilities-power-companiesaccounting-guide.html (last accessed, April 10, 2017) BATEMAN REBUTTAL EXHIBIT 3 Page 9 of 40 revenues" and further states that such a deferral is "in conformity with the principle of matching costs with revenues." Under the literature and interpretations cited above, a deferral where amortization is required without a corresponding increase in revenues would have to be expensed immediately. If the utility does have a planned rate case, like DEP does, the accounting guidance would require the utility to write-off the estimated amortization that would occur before new rates from that rate case are expected to be effective. 3 Approving the recommendation of the Public Staff prior to the general rate case would deny the Company legitimate cost recovery without justification. Requiring the Company to incur incremental storm-related costs would drive the Company's earnings further below authorized levels. While historical practices are worthy of consideration, they should not be pursued without regard to a reasonable analysis based on existing circumstances and resulting impacts. DEP submits that the most reasonable procedure under the circumstances of this case is to resolve any disputed questions in the context of the upcoming general rate case and begin amortization upon the implementation of new customer rates. 4. The Public Staff's proposed 10-year amortization period is unreasonable, and the Commission should determine the appropriate amortization period in DEP's upcoming general rate case. The Public Staff recommends in its Initial Comments that the deferred costs approved by the Commission in this case be amortized for regulatory accounting purposes over a ten-year period. 3 However, the Public Staff recognized that the The relevant portions of the cited literature and interpretations are attached to these Reply Comments as Appendix A. BATEMAN REBUTTAL EXHIBIT 3 Page 10 of 40 Commission has amortized storm damage expenses over periods of time ranging from 40 months to 10 years in prior proceedings. In its March 31, 2009 Order Approving Deferral Accounting with Conditions in Docket No. E-7, Sub 874, the Commission stated, as the Public Staff notes in its Initial Comments, that, "The longer the deferral period, the greater the likelihood that the ratepayers who are ultimately required to pay rates including the deferred charges, which are related to resources consumed by the utility in providing services in earlier periods, may not be the same ratepayers who received the services." While the Company agrees with the Public Staff that it has requested a large deferral amount as compared to some other storm deferrals, the deferral's overall effect on rates does not warrant a ten-year amortization period. Despite the size of the recommended deferral, the increase in rates paid by customers is not so burdensome as to require an amortization period over the longest span of time traditionally used by the Commission. The Company submits that a shorter amortization period, potentially over three years, would be a more appropriate result, but the upcoming general rate case affords the Commission the opportunity to review all these issues and reach a decision that is fair and reasonable for both the Company and its customers. Accordingly, the Company requests that the Commission establish the appropriate amortization period in DEP's upcoming rate case. BATEMAN REBUTTAL EXHIBIT 3 Page 11 of 40 5. Updated Summary of Requested 2016 Storm Deferral Amounts and Financial Impacts. Since filing the February 3, 2017 Verified Exhibit, the Company has obtained additional information from vendors. As a result, the Company, as it committed to do, has continued to refine its estimated 2016 storm costs and has updated its cost estimates for the 2016 storms from $96.2 million of estimated O&M for North Carolina retail to $80.0 million. The $47.2 million in capital for North Carolina retail increased to $49.0 million.4 The impact on the ROE has decreased from the 145 basis points listed in the original :Petition to 106 basis points, still a significant impact on the Company's earnings. Since the original Petition, the Company has also reported returns on equity in its E.S.-1 surveillance reports of 10.61% for the 12 months ended December 31, 2016 for its North Carolina retail jurisdiction. The following table shows what these ROE's would be if adjusted for several ratemaking adjustments typically made in a general rate case. 12 Months Ended December 31, 2016 1 2 3 4 5 6 7 8 9 4 As Reported in E.S.-1 Adjust Equity Ratio to Last Approved Normalize Weather Remove DSM/EE PPI Incentive Remove One-Time Items Adjust to End of Period Rate Base, incl. Interest Sync Annualize Depreciation Expense, incl. Adjustment to Depreciation Reserve Add Back Lost Revenue from Hurricane Matthew Adjusted ROE 10.61% 0.07% -0.65% -0.30% 0.00% -0.48% -0.35% 0.18% 9.08% As required by the Commission's Order of March 23, 2017, DEP's work papers are attached to these Reply Comments as Appendix B. BATEMAN REBUTTAL EXHIBIT 3 Page 12 of 40 DEP's authorized return on equity is 10.2%. Thus, absent approval of this request, DEP's return on equity for its North Carolina retail operations is still expected to be well below the return last authorized by the Commission. The Company has also recently estimated the financial impact of the net lost revenues that the Company experienced as a result of Hurricane Matthew at $12.1 million. The Company is not seeking to include the lost revenue amount in the deferral. However, it is important to note that the Company has already been negatively impacted financially as a result of the 2016 storms. The following table shows the further negative financial impact to the Company if the Commission were to adopt the Public Staff recommendations. DEP 2016 Storm Deferral Request in $MM (using updated costs as presented in these reply comments) Limit Deferral Amount on O&M No Capital Recovery No Return on Deferred Asset 10-Yr. Amortization Starts Oct. 2016 Total Impact Company Request Public Staff Recommendations Difference 67.4 5 52.7 (14.7) 8.6 - (8.6) 5.8 - (5.8) - (6.6) (6.6) 81.8 46.1 (35.7) ROE Impact -0.20% -0.12% -0.08% -0.09% -0.49% WHEREFORE, the Company respectfully renews the request for relief set forth in its Petition and as outlined in these Reply Comments. 5 $80.0 million - $12.7 million. Some numbers will not tie precisely, due to rounding. BATEMAN REBUTTAL EXHIBIT 3 Page 13 of 40 Respectfully submitted, this the 12th day of April, 2017. Lawrence B. Somers Deputy General Counsel Duke Energy Corporation NCRH 20 410 S. Wilmington Street Raleigh, North Carolina 27601 Telephone 919.546.6722 bo.somers@duke-energy.com Dwight Allen The Allen Law Offices 1514 Glenwood Avenue, Suite 200 Raleigh, North Carolina 27608 Telephone: 919 838.0529 dallen@theallenlawoffices.com Attorneys for Duke Energy Progress, LLC BATEMAN REBUTTAL EXHIBIT 3 Page 14 of 40 VERIFICATION STATE OF NORTH CAROLINA DOCKET NO. SUB 1131 COUNTY OF WAKE The undersigned, Laura Bateman, Director of Rates and Regulatory Planning for Duke Energy, personally appeared before me, who after first being duly sworn, said that she is authorized to make this verification, that she has read the foregoing reply comments, and knows the contents thereof; and that the same are true and correct to the best of her knowledge, information and belief. Laura Bateman Sworn to and subscribed before me . . ?utility; Thls/f?_ day of Aprll, 2017. 9 9' ?79 Sc? 50 an? .52? 235W WW we Notary Public i] 3W1 My Commission Expires?g?fmw?? ma 2mm? BATEMAN REBUTTAL EXHIBIT 3 Page 15 of 40 Energy & Resources Power & Utilities Sector 2005 Accounting, Financial Reporting, and Tax Update BATEMAN REBUTTAL EXHIBIT 3 Page 16 of 40 Deloitte & Touche LLP 1750 Tysons Boulevard McLean, VA 22102-4219 Tel: 703-251-1000 Fax: 703-251-3400 www.us.deloitte.com December 23, 2005 2005 Accounting, Financial Reporting and Tax Update Power & Utilities Sector The implementation of complex new accounting rules and the provisions of the Sarbanes-Oxley Act have raised the exposure to reporting and compliance risks for companies in the Power & Utilities Sector. As a result, the Sector continues to invest significant time and resources in financial and regulatory reporting, as well as compliance activities. This publication is intended to assist power companies and utilities with their 2005 financial reporting and compliance efforts by focusing on the specialized industry, recently released, and other significant accounting and disclosure requirements that most of these entities must address. We have also included relevant, updated guidance from the Securities and Exchange Commission's staff on MD&A and financial statement disclosures and accounting matters. This technical information follows a brief analysis of the Energy Policy Act of 2005. We hope you find this publication to be a useful resource. Charlie Muha Deloitte & Touche LLP Energy & Resources AERS Leader Jan A. Umbaugh Deloitte & Touche LLP Energy & Resources Professional Practice Director A member firm of Deloitte Touche Tohmatsu BATEMAN REBUTTAL EXHIBIT 3 Page 17 of 40 TABLE OF CONTENTS Section 1 Industry Developments ......................................................................................................1 Section 2 SEC Update.......................................................................................................................4 Section 3 Sarbanes Oxley Internal Controls Reporting ...................................................................11 Section 4 An Analysis of the Application of SFAS 71, Accounting for the Effects of Certain Types of Regulation, as Amended and Interpreted ........................................................................15 Section 5 Energy Contracts, Derivative Instruments and Hedging Activities Update.......................41 Section 6 FASB and EITF Update ...................................................................................................51 Section 7 Environmental Update .....................................................................................................85 Section 8 FERC Update ..................................................................................................................90 Section 9 Tax Update ......................................................................................................................94 Appendix I Heads Up.......................................................................................................................103 Appendix II Abbreviations.................................................................................................................161 Appendix III Technical Resources .....................................................................................................162 This document contains general information only and Deloitte & Touche LLP and Deloitte Tax LLP are not, by means of this document, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This document is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Any tax advice included in this document was not intended or written to be used, and it cannot be used by the taxpayer, for the purpose of avoiding any penalties that may be imposed by any governmental taxing authority or agency. Deloitte & Touche LLP and Deloitte Tax LLP, its affiliates and related entities shall not be responsible for any loss sustained by any person who relies on this document. Copyright (C) 2005 Deloitte Development LLC. All rights reserved. BATEMAN REBUTTAL EXHIBIT 3 Page 18 of 40 Pages 1 - 15 Omitted, They are not relevant to this Docket but they are not confidential and can be provided upon request. BATEMAN REBUTTAL EXHIBIT 3 Page 19 of 40 o The enterprise's rates for regulated services or products provided to its customers are established by or are subject to approval by an independent, third-party regulator or by its own governing board empowered by statute or contract to establish rates that bind customers. o The regulated rates are designed to recover the specific enterprise's costs of providing the regulated services or products. o In view of the demand for the regulated services or products and the level of competition, direct and indirect, it is reasonable to assume that rates set at levels that will recover the enterprise's costs can be charged to and collected from customers. This criterion requires consideration of anticipated changes in levels of demand or competition during the recovery period for any capitalized costs. If some of a utility's operations are regulated and meet all of the above criteria, SFAS 71 should be applied to only that portion. General Standards SFAS 71 recognizes that a principal consideration introduced by rate regulation is the cause-and-effect relationship of costs and revenues - an economic dimension that, in some circumstances, should affect accounting for rate-regulated utilities. Thus, a rate-regulated utility should therefore capitalize a cost, as a regulatory asset, or recognize an obligation, as a regulatory liability, if it is probable that through the ratemaking process there will be a corresponding increase or decrease in future revenues. Regulatory Assets SFAS 71 paragraph 9 states that the "rate action of a regulator can provide reasonable assurance of the existence of an asset." All or part of an incurred cost that would otherwise be charged to expense should be capitalized as a regulatory asset if: o It is probable that future revenues in an amount approximately equal to the capitalized cost will result from inclusion of that cost in allowable costs for ratemaking purposes. o The regulator intends to provide for the recovery of that specific incurred cost rather than to provide for expected levels of similar future costs. An incurred cost is defined in SFAS 71 as "a cost arising from cash paid out or obligation to pay for an acquired asset or service, a loss from any cause that has been sustained and must be paid for." Equity return (or an allowance for earnings on shareholders' investment), however, is not an incurred cost that would otherwise be charged to expense. SFAS 71 requires a rate-regulated utility to capitalize as a regulatory asset an incurred cost that would otherwise be charged to expense if future recovery in rates is probable. Probable is defined in SFAS 5 as "likely to occur," which is a high test to meet. If a regulatory asset is recorded, but no longer meets the above criteria, the cost should then be charged to earnings. Thus, Paragraph 9 has a continuous probability standard to be met at each balance sheet date in order for a regulatory asset to remain recorded. Evidence that a regulatory asset is probable of recovery is a matter of professional judgment based on the facts and circumstances of each case. Utility management's positive representation is required that each regulatory asset is probable of recovery in future rates. The SEC has increasingly scrutinized documentation of the basis Copyright (C) 2005 Deloitte Development LLC. All rights reserved. 16 16 BATEMAN REBUTTAL EXHIBIT 3 Page 20 of 40 for recording regulatory assets. The SEC staff has unofficially suggested that evidence that could support future recovery and corroborates utility management's representation includes: o Rate orders from the regulator specifically authorizing recovery of the costs in rates; o Previous rate orders from the regulator allowing recovery for substantially similar costs; o Written approval from the regulator approving future recovery in rates; and o Analysis of recoverability from internal or external legal counsel. The best evidence of a regulatory asset is a rate order. However, the scheduling and length of the regulatory process sometimes does not enable a company to obtain a rate order on a timely basis. As a result, a utility might obtain an "accounting order" or comparable form of communications from its regulator or the regulator's staff agreeing with the company's proposed accounting for an incurred cost, even though such orders often include a qualifier that the letter guidance is not authoritative for ratemaking purposes. In a few jurisdictions, accounting orders signed by the regulator may provide the same degree of assurance as a specific rate order. However, this is atypical and the level of assurance provided by an accounting order must be assessed on a jurisdiction by jurisdiction basis, with particular focus on legal authority, who signs the accounting order, and historical regulatory precedents and practices. Under guidance included in EITF Issue 93-4, an incurred cost that does not meet the asset recognition criteria in paragraph 9 of SFAS 71 at the date the cost is incurred should be recognized as a regulatory asset when it meets those criteria at a later date. Under paragraph 10 of SFAS 71, as amended by SFAS 144, previously disallowed costs that are subsequently allowed by a regulator to be recovered, should be recorded as an asset, consistent with the classification that would have resulted had the cost initially been included in allowable costs. This provision applies to plant costs and regulatory assets created by actions of a regulator. Paragraph 10 of SFAS 71, as amended by SFAS 144, also concludes that a regulator can reduce or eliminate the value of an asset. If a regulator disallows recovery of part of a regulatory asset, that part of the asset is to be written off. Although special rules apply to disallowances of a recently completed utility plant, any writedowns in the value of other assets is limited to the amount appropriate under GAAP. Regulatory assets should be amortized over future periods consistent with the related increase in customer revenues. Regulatory Liabilities SFAS 71, paragraph 11, also recognizes that the rate actions of a regulator can impose a liability on a rateregulated utility, usually to its customers. The following are examples of ways in which regulatory liabilities can be imposed. o A regulator may require refunds to customers o A regulator can provide provisions in rates for costs not yet incurred. o A regulator can require that a gain be given to customers by amortizing amounts to reduce future rates. Paragraph 12 of SFAS 71 expands this idea by pointing out that "actions of a regulator can eliminate a liability only if the liability was imposed by actions of the regulator." Thus, a rate-regulated enterprise's balance sheet Copyright (C) 2005 Deloitte Development LLC. All rights reserved. 17 17 BATEMAN REBUTTAL EXHIBIT 3 Page 21 of 40 should include all liabilities and obligations that an enterprise in general would record under GAAP, such as for capital leases, pension plans, compensated absences and income taxes. The SEC's staff, in SAB Topic 10F, Utility Companies-Presentation of Liabilities for Environmental Costs, clarified that such liabilities should not be offset with corresponding regulatory assets. Regulatory liabilities should be amortized over future periods consistent with the related decrease in customer revenues. Specific Standards SFAS 71 also sets forth specific standards for a few isolated accounting and disclosure issues. o Allowance for Funds Used During Construction (AFUDC). Paragraph 15 allows the capitalization of AFUDC, including a computed interest cost and a designated cost of equity funds, if a regulator prescribes this method rather than capitalizing interests on funds used during construction in accordance with the guidelines provided in SFAS 34, Capitalization of Interest Cost. The income statement should include an item of other income for the equity component of AFUDC and/or a reduction of interest for the debt component of AFUDC. AFUDC can only be capitalized under SFAS 71, paragraph 15, if subsequent inclusion in allowable costs for ratemaking purposes is probable. In addition, if AFUDC is not capitalized because its inclusion in the allowable cost for establishing future rates is not probable, the utility cannot alternatively capitalize interest under SFAS 34. Also see subsequent discussion under SFAS 92 in this Section regarding the limitations on capitalizing AFUDC. o Intercompany Profit. SFAS 71, paragraph 16, provides that intercompany profits on sales to regulated affiliates should not be eliminated in general purpose financial statements if the sales price is reasonable and it is probable that future revenues allowed in the ratemaking process will approximately equal the sales price. o Income Taxes. Paragraph 18 of SFAS 71, as amended by SFAS 109, Accounting for Income Taxes, adopts the liability method of accounting for deferred income taxes. Because accumulated deferred income taxes are viewed as a liability under SFAS 109, an income tax liability must be recorded for all temporary differences. However, if a regulator defers an income tax cost for future recovery, and the future recovery through rates is probable, the costs are to be capitalized as a regulatory asset rather than expensed. Assuming that a utility has concluded that future recovery through rates is probable, it would record a corresponding asset in recognition of future recovery of income tax related to temporary differences not provided in current rates. o Refunds. Paragraph 19 of SFAS 71 addresses the accounting for significant refunds of revenue recognized in prior periods. For refunds recognized in a period other than the period in which the related revenue was recognized, SFAS 71 adopts the requirements of SFAS 16, Prior Period Adjustments, which precluded recording these refunds as restatements of prior years. Disclosure of the effect on net income and the years in which the related revenue was recognized is required, if material. Adjustment to prior quarters of the current fiscal year is appropriate for such refunds provided all of the following criteria are met: ? The effect is material (either to operations or income trends). Copyright (C) 2005 Deloitte Development LLC. All rights reserved. 18 18 BATEMAN REBUTTAL EXHIBIT 3 Page 22 of 40 Pages 19 - 171 Omitted, They are not relevant to this Docket but they are not confidential and can be provided upon request. mm 1mama~m em: 9m BATEMAN REBUTTAL EXHIBIT 3 Page 23 of 40 Deloitte A service for regulated utilities a1: tg ""mi??idui?. - i MMJIML 3 Deloitte Center for Energy Solutions It 1: . Contents Foreword Utilities and their regulators Geneal characteristics Objectives of regulatro'. State and local regulation Federal regulation Rate regulation Cost-of?service ratemaking concepts Cost of sew ce ratemak ng etilodooe es Rate base test per 0d cost of sew ce Rate 0? retur Pi in serv ces . Accounting characteristics of utilities Effect oi regulamn wstems o" accorr-ts Natrre of oifierer .ces EASE Statement Ho. 71 Other FASB statements Plant accow'tng Revenue raccoumsng inventory accounting income tax accountr'g Regulatory cost deferrals Form of nanc at s-?atements Notes to ?nance statements Example r?mar cra: statements and gas tit! .tv Utility finance 80; ti rat'r-gs Capta! za' on rat OS 80: ter'rs and covenar ts Preferred 5m k5 v-de' 90 CV Appendices Glossary The 50 largest publ and private eiectr and gas moo 1W3I?di?? MHZ 9m? ?ml? BATEMAN REBUTTAL EXHIBIT 3 Page 25 of 40 Pages 1 - 33 Omitted They are not relevant to this Docket but they are not confidential and can be provided upon request. ?1&3 'Nl?lm Under APB Opinion No. 11, deferred income taxes were prowded to the extent that timing differences originating or reversmg in the current period increased or decreased current income taxes. However, Statement No. 71 did not requ re that regulated enterprises provide deferred income taxes for the effects of timing differences that were afforded flow-through treatment in ratemaking if it was probable that income taxes payable in future years when the timing differences reversed would be recovered through rates based on taxes payable at that time. Under Statement No. 109, regulated enterprises that meet the criteria for application of Statement No. 71 are reqUIred to provide deferred income taxes for all temporary differences and are: 1. Prohibited from usmg net-of?tax accounting and reporting. This provmon reqUIres, for example, the tax effects of the debt component of AFUDC to be recorded as a deferred tax liability rather than as a reduction of plant in serVice and CWIP (a practice prewously followed by many regu ated enterprises) 2. Reqmred to recognize a deferred tax liability for tax benefits that are flowed through to customers when temporary differences originate and for the equnty component of AFU DC. 3. Required to adjust a deferred tax liability or asset for an enacted change in tax laws or rates. An exception was prov1ded for amounts of plant in service at the beginning of the year the Statement was first applied that have been reported on a net-of-tax or after-tax basis. However, any difference between the reported amount and the tax bans of that plant in sewice was a temporary difference for which a deferred tax liability was recognized. If, as a result of rate actions by a regulator, it was probable that future increase or decrease in deferred income tax liabilities because of items 2 and 3 above, or for the exception discussed in the preceding paragraph, were to be recovered from or returned to customers through future rates, a regulatory asset or regulatory liability under Statement No. 71 was recognized for that probable future revenue or revenue reduction. That asset or liability was also a temporary difference for which a deferred tax asset or liability was recognized. 34 ?lm BATEMAN REBUTTAL EXHIBIT 3 Page 26 of 40 For many regulated enterprises that apply Statement No. 71, the impact of implementing Statement No. 109 was to increase regulatory assets and deferred tax liabilities in cornpar son With amounts reported under APB No. 1 1. The treatment of large, infrequently occurring costs is typical of the fferences in the time when an expense IS recognized by utilit es, on the one hand, and by bus ness generally, on the other. A utility is entitled, under traditional ratemaking concepts, to rates that are adequate to recover all amounts reasonably expended in rendering SENICE. The rates are de5igned to cover the usual and recurring costs of prowding service, but certain items are neither usual nor expected to be routinely recurring. Such events do occur, nevertheless, and recovery is not p055ible unless the costs are allowed for ratemaking purposes. If the entire cost were charged in full to a single year, it would necessarily be omitted for rate-design purposes. A common solution is to defer the item's cost when incurred, and then to amortize them over a period that, in the commi55ion's opinion, Will result in a fair annual charge to income. For financial reporting purposes, the regulator's action creates a regulated asset under Statement No. 71, which should be recorded on the balance sheet. Typical regulatory assets deferred and amortized with commissmn approval include: 1. Uninsured storm losses 2. Losses from early retirement of major plant assets (not prowded for in depreciation) 3 Expenses of a rate case 4. Costs of an abandoned construction project 5. Infrequent maintenance expenditures 6. Env ronmental cleanup costs. In the case of losses that can be reasonably anticipated, even though the amounts cannot be known, some commissions have allowed annual provisions to a reserve for future losses. For financial reporting purposes, the regulator's action creates a regulatory liability under Statement No. 71, which should be recorded on the balance sheet. When such losses are experienced, the regulatory liability is reversed to operating income. However, many commissions do not make allowances for M?a nwmaw NEW MEI indeterminate future losses. When it probabie that the cost Will be recoverabe out of future revenues, deferral under Statement No. 71 IS In conform?ty With the princ ple of matching costs With revenues. Form of Financial statements. Published reports do not usually follow the exact wording of the accounts, for example, in the FERC's USOA. However, they are generally qurte close to the prescribed form, and the captions are usually similar. As might be expected, the finanCial statements of individual utilities show variations of form. However, they resemble each other more than they resemble the statements of industries that are not regulated. At the end of this section is an example balance sheet, income statement, statement of cash flows, and statement of capitalization and shareholder's eqUity for a combination electric and gas investor-owned utility. They are intended to give an idea of the form of unity financ al statements and the relationships between amounts, but not necessarily to supply a recommended form for use in a specific Situation. The Statement of Cash flows is Similar to nonregulated companies. A variety of other statements may also be presented: Statement of Changes in Stockholders Equity, Statement of Capitalization, and Statement of Comprehensive Income. To an accountant accustomed to commercrai finanCIal statements, the difference in presentation is apparent immediately. Utility plant is the first major caption on the asset Side of the balance sheet, and capitalization is first on the liability Side. Current assets and current liabilities BATEMAN REBUTTAL EXHIBIT 3 Page 27 of 40 are relegated to a comparatively unimportant posrtion in the center of the balance sheet, rather than being placed prominently as In statements for commercral and industrial companies. This form of presentation is intended to reflect the relative importance to a utility of the various accounts. The form of income statement re?ects the cIaSSification of expenses in ratemaking. Operating income (subject to regulation) is shown as the result of deduct-ng total operating expenses (generally allowable as operating revenues deduction in ratemaking) from total operating revenues. Other income and deductions (generally not conSidered in ratemaking) and interest expense only in determining the allowed rate of return) are then applied to arrive at net income. Operating expenses are referred to as "above the line" because they are allowable in ratemaking and are deducted in arrivrng at operating income. Interest expense (which is recovered through the allowed rate of return) and other income and deductions are referred to as "below the line" because they are applied after operating income and are not allowable as operating expenses in ratemaking. The concept of above-the-Iine expenses being allowable in ratemaking affects the form of income statement, the cIaSSIfi?cation of expenses, and, in fact, deCIsions of management in incurring expenses In the income statement, fixed expenses are relatively high. Depreoation and taxes other than income are high in relation to those of other busmesses because of the relatively high proportion of fixed assets Income taxes may be low or high as a percentage of pretax income because of differences between book and tax accounting and the related regulatory treatment Regulated utilities manual A servrce for regulated utilities 35 moo MHZ 9m ?ml? BATEMAN REBUTTAL EXHIBIT 3 Page 28 of 40 Pages 36 47 Omitted They are not relevant to this Docket but they are not confidential and can be provided upon request. BATEMAN REBUTTAL EXHIBIT 3 Reply Comment Workpapers, Docket No. E-2, Sub 1131 Page 29 of 40 DEP 2016 NC Storm Cost Summary March 2017 Close - Update Distribution Transmission Transmission Transmission Event Jonas 2/16/16 Ice 2/23/16 Wind 6/23/16 Thunderstorm 6/29/16 Thunderstorm 7/7/16 Thunderstorm 7/8/16 Thunderstorm TS Hermine Hurricane Matthew NC retail Incremental O&M 21,177,302 293,437 1,956,672 176,194 189,037 296,957 1,058,321 1,670,712 49,450,381 System Incremental O&M 337,211 NC Retail Allocation Factor 58.99% 58.99% 58.99% 58.99% 58.99% 58.99% 58.99% 58.99% 58.99% NC retail Incremental O&M 198,917 - 41,475 - - - - 13,056 3,521,200 NC Retail Incremental NC Retail O&M Capital 21,376,219 1,199,808 293,437 1,998,147 176,194 189,037 296,957 1,058,321 1,683,768 23,860 52,971,581 45,012,124 - Total 76,269,013 3,774,648 80,043,661 46,235,792 70,310 22,133 5,969,262 T&D Distribution Transmission System Capital 4,728,296 Transmission Transmission NC Retail Allocation Total Capital Factor NC Retail Capital Invested 58.99% 1,199,808 58.99% 58.99% 58.99% 58.99% 58.99% 58.99% 58.99% 23,860 58.99% 2,789,168 47,801,292 2,789,168 49,024,960 Average Annual Storm Expense in Last Rate Case System Amount Per Bateman Supplemental Ex. 1, page 5 (WK10), Line 11 14,688,153 NC Retail Allocation % 86.42% NC Retail Amount in Rates 12,693,502 Storm Cost Summary Mar17 Page 1 BATEMAN REBUTTAL EXHIBIT 3 Reply Comment Workpapers, Docket No. E-2, Sub 1131 Page 30 of 40 DEP NC Retail ROEs Reported in E.S.-1 and Impacts of Potential Adjustments As of 4/10/2017 Impacts are estimated at a high level for modeling purposes and adjustments may not be at the same level of detail as would be used in a rate case. Q4 2016 Income for Common Rate Base for Common Equity (in $000) Equity (in $000) ES-1 Reference 1 2 3 4 5 Sched 1, Line 19, Col f Sched 1, Line 19, Col c Return on Common Equity Income for C.E./Rate Base for C.E. 7 8 As Reported Adjust Equity Ratio to Last Approved Normalize Weather Remove DSM/EE PPI Incentive Remove One Time Items Adjust to End of Period Rate Base, incl Interest Sync Annualize Depreciation Expense, incl adjusted to Depreciation Reserve Lost revenue from Hurricane Matthew 9 Adjusted 393,947 2016 Storm Costs If Expensed Impact on Per books ROE Per Books ROEs if Storms had been expensed (44,552) -1.06% 9.56% (44,552) -1.03% 8.05% 6 Impact on Adjusted ROE Adjusted ROEs if Storms had been expensed 447,609 4,218,193 (965) (37,078) (27,097) (12,535) - 10.61% 0.07% -0.65% -0.30% 0.00% (4,016) 173,928 -0.48% (16,689) (14,053) 7,640 -0.35% 0.18% 4,340,990 NC ROE Mar17 9.08% Page 2 BATEMAN REBUTTAL EXHIBIT 3 Reply Comment Workpapers, Docket No. E-2, Sub 1131 Page 31 of 40 DEP NC Retail ROEs Reported in E.S.-1 and Impacts of Potential Adjustments As of 4/10/2017 Impacts are estimated at a high level for modeling purposes and adjustments may not be at the same level of detail as would be used in a rate case. CALCULATIONS Adjust Equity Ratio to Last Approved Equity Rate Base Filed Equity Ratio Last Approved Equity Ratio Change in Equity Rate Base Change in Debt Rate Base Debt Rate EBIT Impacts (Interest exp) Tax Rate After-Tax Impacts 37,078 4.14% (1,534) 37.06% (965) Normalize Weather EBIT Impacts Tax Rate After-Tax Impacts (43,052) ES-1 Workpapers 37.06% (27,097) Remove DSM/EE PPI Incentive EBIT Impacts Tax Rate After-Tax Impacts (19,916) ES-1 Workpapers 37.06% (12,535) Remove One Time Items EBIT Impacts Tax Rate After-Tax Impacts - 37.06% - 4,218,193 53.47% 0.53 (37,078) NC ROE Mar17 Page 3 BATEMAN REBUTTAL EXHIBIT 3 Reply Comment Workpapers, Docket No. E-2, Sub 1131 Page 32 of 40 DEP NC Retail ROEs Reported in E.S.-1 and Impacts of Potential Adjustments As of 4/10/2017 Impacts are estimated at a high level for modeling purposes and adjustments may not be at the same level of detail as would be used in a rate case. Adjust for End of Period Rate Base End of Period Rate Base, per Supplemental Equity portion @ last approved equity ratio Delta to Average @ last approved Change in Debt Rate Base Debt Rate EBIT Impacts (Interest exp) Tax Rate After-Tax Impacts Annualize Depreciation Expense System Amount from Rainbow Schedule NC Retail Net Plant Allocator NC Retail Portion EBIT Impact Tax Rate After-Tax Impacts Equity Rate Base Impact 8,217,062 4,355,043 173,928 154,238 4.14% (6,381) 37.06% (4,016) 40,476 (40,476) 65.51% 65.51% 26,516 (26,516) (26,516) 37.06% (16,689) (14,053) Addback estimated NC lost revenue due to Hurricane Matthew NC amount 12,139 Tax Rate 37.06% After-Tax Impacts 7,640 NC ROE Mar17 Page 4 BATEMAN REBUTTAL EXHIBIT 3 Reply Comment Workpapers, Docket No. E-2, Sub 1131 Page 33 of 40 DEP NC Retail ROEs Reported in E.S.-1 and Impacts of Potential Adjustments As of 4/10/2017 Impacts are estimated at a high level for modeling purposes and adjustments may not be at the same level of detail as would be used in a rate case. 2016 Storm Impacts Dist O&M Amount in Rates Deferred Distr O&M net of amount in rates Deferred Trans O&M Annualized Depr Exp - Dist Annualized Depr Exp - Trans Interest Expense EBT Impact After tax return on Common Equity Impact 76,269 12,694 63,576 3,775 1,650 47 1,738 (70,784) (44,552) Rate Base Impact - Dist - Plant, net of AD and ADIT Rate Base Impact - Dist - Reg Asset, net of ADIT Rate Base Impact - Trans - Plant, net of AD and ADIT Rate Base Impact - Trans - Reg Asset, net of ADIT Rate Base Impact - Total Equity portion @ last approved equity ratio 45,703 40,921 2,757 2,425 89,380 47,372 NC ROE Mar17 Page 5 BATEMAN REBUTTAL EXHIBIT 3 Reply Comment Workpapers, Docket No. E-2, Sub 1131 Page 34 of 40 DEP NC Retail ROEs Reported in E.S.-1 and Impacts of Potential Adjustments As of 4/10/2017 Impacts are estimated at a high level for modeling purposes and adjustments may not be at the same level of detail as would be used in a rate case. Analysis of Impacts of Public Staff Recommendations Company Request in $000s Limit deferral amount on O&M No Capital Recovery No Return on Deferred Asset 10-Yr Amort Starts Oct 2016 Total Projected Deferral Balance in $MM Limit deferral amount on O&M No Capital Recovery No Return on Deferred Asset 10-Yr Amort Starts Oct 2016 Total Projected Deferral Balance Public Staff Recommendations 67,350 52,650 8,624 5,818 (6,581) 81,792 46,069 Company Request 67.4 8.6 5.8 - 81.8 Public Staff Recommendations 52.7 - - (6.6) 46.1 Difference (14,700) (8,624) (5,818) (6,581) (35,723) Difference (14.7) (8.6) (5.8) (6.6) (35.7) ROE Impact -0.20% -0.12% -0.08% -0.09% -0.49% Q4 2016 Income for Common Rate Base for Common Equity (in $000) Equity (in $000) Return on Common Equity Income for C.E./Rate Base for C.E. 1 2 3 4 5 6 Adjusted ROE from Above Limit deferral amount on O&M No Capital Recovery No Return on Deferred Asset 10-Yr Amort Starts Oct 2016 393,947 (9,252) (5,428) (3,662) (4,142) 371,463 4,340,990 (7,791) (1,524) (3,083) (3,488) 4,325,104 NC ROE Mar17 9.08% -0.20% -0.12% -0.08% -0.09% 8.59% Page 6 BATEMAN REBUTTAL EXHIBIT 3 Reply Comment Workpapers, Docket No. E-2, Sub 1131 Page 35 of 40 DEP NC Retail ROEs Reported in E.S.-1 and Impacts of Potential Adjustments As of 4/10/2017 Impacts are estimated at a high level for modeling purposes and adjustments may not be at the same level of detail as would be used in a rate case. After-Tax Tax Last Authorized Equity Rate Cost of Capital Assumed Capital Structure: 47.00% Long-Term Debt 53.00% Common Equity Cost Rates: Long-Term Debt Common Equity Pre-Tax Equity 4.57% 10.20% Cost Components: Long-Term Debt (L22 x L26) Common Equity (L23 x L27) Rate 2.15% 5.41% 7.55% Depreciation Rates: Book Depreciation Rate - Distribution NC1000 Book Depreciation Rate - Transmission NC1000 37.06% 2.15% 8.59% 10.74% 3.5676% 1.6723% NC ROE Mar17 Page 7 BATEMAN REBUTTAL EXHIBIT 3 Reply Comment Workpapers, Docket No. E-2, Sub 1131 Page 36 of 40 Duke Energy Progress, LLC Docket E-x, SUB xxxx Normalize for storm costs For the test period ended December 31, 2016 (Dollars in thousands) Projected Storm Deferral Balance-Distribution Line No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Description 11/30/2016 Plant Balance (a) December 2016 January 2017 February 2017 March 2017 April 2017 May 2017 June 2017 July 2017 August 2017 September 2017 October 2017 November 2017 December 2017 Total Costs Through December 31, 2017 $ NC MACRS Plant Dep Tax Book Timing Deferred Balance Rate (1) Depr Depr Diff Tax 46,236 46,236 46,236 46,236 46,236 46,236 46,236 46,236 46,236 46,236 46,236 46,236 46,236 46,236 MACRS 3.75% 3.75% 7.22% 7.22% 7.22% 7.22% 7.22% 7.22% 7.22% 7.22% 7.22% 7.22% 7.22% 7.22% 867 867 278 278 278 278 278 278 278 278 278 278 278 278 130 130 130 130 130 130 130 130 130 130 130 130 130 130 (737) (737) (148) (148) (148) (148) (148) (148) (148) (148) (148) (148) (148) (148) ADIT Depr (273) (273) (55) (55) (55) (55) (55) (55) (55) (55) (55) (55) (55) (55) (273) (273) (601) (656) (711) (766) (820) (875) (930) (985) (1,040) (1,095) (1,150) (1,204) Deferred Cost of Capital-Debt Accum (130) (260) (390) (520) (651) (781) (911) (1,041) (1,171) (1,301) (1,431) (1,561) (1,691) (1,822) Rate Base 45,833 45,703 45,244 45,060 44,875 44,690 44,505 44,320 44,135 43,950 43,765 43,580 43,395 43,210 2016 2017 82 82 164 81 81 80 80 80 79 79 79 78 78 78 77 639 Total 82 82 81 81 80 80 80 79 79 79 78 78 78 77 803 Deferred Cost of Capital-Equity Deferred Depreciation Exp 2016 2016 2017 328 327 655 324 323 321 320 319 317 316 315 313 312 311 309 2,555 Total 328 327 324 323 321 320 319 317 316 315 313 312 311 309 3,210 2017 Total 130 130 130 130 130 130 130 130 130 130 130 130 1,041 130 130 130 130 130 130 130 130 130 130 130 130 130 130 1,301 130 130 260 (a) November balance as adjusted for March true-up Cost of Capital Assumed Capital Structure: Long-Term Debt Common Equity Cost Rates: Long-Term Debt Common Equity Cost Components: Long-Term Debt (L22 x L26) Common Equity (L23 x L27) Rate Depreciation Rates: Book Depreciation Rate - Distribution -NC1000 Book Depreciation Rate - Transmission-NC1000 Retirements netted in Depreciation Exp calc After-Tax Equity Tax Rate Pre-Tax Equity 47.00% 53.00% 4.57% 10.20% 14.77% 37.06% 4.57% 16.21% 20.78% 2.15% 5.41% 7.55% 37.06% 2.15% 8.59% 10.74% 3.5676% 1.6723% $2,472 [1] MACRS Rate based on 20 yr plant life NC 0203 Proj Def Distribution Page 8 BATEMAN REBUTTAL EXHIBIT 3 Reply Comment Workpapers, Docket No. E-2, Sub 1131 Page 37 of 40 Duke Energy Progress, LLC Docket E-x, SUB xxxx Normalize for storm costs For the test period ended December 31, 2016 (Dollars in thousands) NC - 0203 Projected Storm Deferral Balance-Distribution Deferred O&M Expense Line No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Description 11/30/2016 Plant Balance (a) December 2016 January 2017 February 2017 March 2017 April 2017 May 2017 June 2017 July 2017 August 2017 September 2017 October 2017 November 2017 December 2017 Total Costs Through December 31, 2017 2016 2017 63,576 63,576 - Deferred Tax on Deferred Costs Total 2016 63,576 63,576 (23,761) (200) (23,961) 2017 Total (198) (198) (197) (196) (196) (195) (195) (194) (193) (193) (192) (191) (1,569) (23,761) (200) (198) (198) (197) (196) (196) (195) (195) (194) (193) (193) (192) (191) (25,530) Pre-Tax Return on Deferred Costs-Debt 2016 2017 Total 72 72 73 73 74 75 75 76 76 77 78 78 79 79 599 72 145 147 148 149 150 152 153 154 155 156 158 159 1,271 Pre-Tax Return on Deferred Costs-Equity 2016 2017 Total 289 289 291 294 296 298 301 303 306 308 310 313 315 317 2,397 289 580 587 592 597 602 607 611 616 621 625 630 635 5,081 Deferred Asset Total 2016 2017 64,116 900 65,016 899 901 901 903 905 905 907 909 909 911 913 913 7,232 Total 64,116 900 1,260 1,268 1,271 1,276 1,281 1,284 1,289 1,294 1,297 1,302 1,307 1,310 75,241 (a) November balance as adjusted for Marc NC 0203 Proj Def Distribution Page 9 BATEMAN REBUTTAL EXHIBIT 3 Reply Comment Workpapers, Docket No. E-2, Sub 1131 Page 38 of 40 Duke Energy Progress, LLC Docket E-x, SUB xxxx Normalize for storm costs For the test period ended December 31, 2016 (Dollars in thousands) `` Projected Storm Deferral Balance-Transmission Line No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 Description NC MACRS Plant Dep Tax Book Timing Deferred ADIT Accum Balance Rate (1) Depr Depr Diff Tax Balance Depr 11/30/2016 Plant Balance (a) $ December 2016 January 2017 February 2017 March 2017 April 2017 May 2017 June 2017 July 2017 August 2017 September 2017 October 2017 November 2017 December 2017 Total Costs Through December 31, 2017 2,789 2,789 2,789 2,789 2,789 2,789 2,789 2,789 2,789 2,789 2,789 2,789 2,789 2,789 5.00% 5.00% 9.50% 9.50% 9.50% 9.50% 9.50% 9.50% 9.50% 9.50% 9.50% 9.50% 9.50% 9.50% MACRS 70 70 22 22 22 22 22 22 22 22 22 22 22 22 4 4 4 4 4 4 4 4 4 4 4 4 4 4 (66) (66) (18) (18) (18) (18) (18) (18) (18) (18) (18) (18) (18) (18) (24) (24) (7) (7) (7) (7) (7) (7) (7) (7) (7) (7) (7) (7) (24) (24) (56) (62) (69) (76) (83) (89) (96) (103) (109) (116) (123) (130) (4) (8) (12) (16) (19) (23) (27) (31) (35) (39) (43) (47) (51) (54) Deferred Cost of Capital-Equity Deferred Cost of Capital-Debt Rate Base 2,761 2,757 2,722 2,711 2,701 2,690 2,679 2,669 2,658 2,648 2,637 2,626 2,616 2,605 2016 2017 5 5 10 5 5 5 5 5 5 5 5 5 5 5 5 40 Total 2016 5 5 5 5 5 5 5 5 5 5 5 5 5 5 50 2017 20 20 39 19 19 19 19 19 19 19 19 19 19 19 19 152 Total Deferred Depreciation Expense 2016 20 20 19 19 19 19 19 19 19 19 19 19 19 19 191 2017 4 4 8 4 4 4 4 4 4 4 4 4 4 4 4 31 Total 4 4 4 4 4 4 4 4 4 4 4 4 4 4 39 (a) November balance as adjusted for March true-up Cost of Capital Assumed Capital Structure: Long-Term Debt Common Equity Cost Rates: Long-Term Debt Common Equity Cost Components: Long-Term Debt (L22 x L26) Common Equity (L23 x L27) Rate Depreciation Rates: Book Depreciation Rate - Distribution NC1000 Book Depreciation Rate - Transmission NC1000 After-Tax Equity Tax Rate Pre-Tax Equity 47.00% 53.00% 4.57% 10.20% 14.77% 37.06% 4.57% 16.21% 20.78% 2.15% 5.41% 7.55% 37.06% 2.15% 8.59% 10.74% 3.5676% 1.6723% [1] MACRS Rate based on 15 yr plant life NC 0204 Proj Def Transmission Page 10 BATEMAN REBUTTAL EXHIBIT 3 Reply Comment Workpapers, Docket No. E-2, Sub 1131 Page 39 of 40 Duke Energy Progress, LLC Docket E-x, SUB xxxx Normalize for storm costs For the test period ended December 31, 2 (Dollars in thousands) NC - 0204 Projected Storm Deferral Balance-Tran Deferred O&M Expense Line No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 Description 11/30/2016 Plant Balance (a) December 2016 January 2017 February 2017 March 2017 April 2017 May 2017 June 2017 July 2017 August 2017 September 2017 October 2017 November 2017 December 2017 Total Costs Through December 31 2016 2017 3,775 3,775 - Total 3,775 3,775 Deferred Tax on Deferred Costs 2016 2017 (1,409) (11) (1,420) (10) (10) (10) (10) (10) (10) (10) (10) (10) (10) (10) (10) (80) Total (1,409) (11) (10) (10) (10) (10) (10) (10) (10) (10) (10) (10) (10) (10) (1,500) Pre-Tax Return on Deferred Costs-Debt 2016 2017 Total 4 4 4 4 4 4 4 4 5 5 5 5 5 5 35 4 9 9 9 9 9 9 9 9 9 9 9 9 75 Pre-Tax Return on Deferred Costs-Equity 2016 2017 Total 17 17 17 17 18 18 18 18 18 18 18 18 19 19 142 17.1 34 35 35 35 36 36 36 36 37 37 37 37 300 Deferred Asset Total 2016 3,803 50 3,853 2017 49 50 50 50 50 50 50 51 51 51 51 51 400 Total 3,803 50 71 71 72 72 72 73 73 73 74 74 74 75 4,430 (a) November balance as adjuste NC 0204 Proj Def Transmission Page 11 BATEMAN REBUTTAL EXHIBIT 3 Reply Comment Workpapers, Docket No. E-2, Sub 1131 Page 40 of 40 Duke Energy Progress Estimated Revenue Margin Impact Hurricane Matthew Service Restoration by Day NC-0205 SYSTEM Line 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Saturday Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sunday Date 10/8 10/9 10/10 10/11 10/12 10/13 10/14 10/15 10/16 Time 09:30 09:30 09:30 08:00 09:30 09:30 09:30 09:30 07:30 Cumulative Restored 40,182 444,387 824,283 1,125,248 1,289,279 1,392,282 1,466,709 1,504,277 1,521,197 % Restored 3% 29% 54% 74% 85% 92% 96% 99% 100% Residential Commercial Daily Restored 40,182 404,205 379,896 300,965 164,031 103,003 74,427 37,568 16,920 1,521,197 Outage Duration (Days) 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 Average Total Outage Daily Usage Days (KWh) Total Lost Sales (KWh) Total Lost Net Average Margin Revenue Margin per KWh ($) 404,205 759,792 902,895 656,124 515,015 446,562 262,976 135,360 4,082,929 Oct 2016 Customer Mix Count Percent 1,296,903 84.9% 230,059 15.1% 1,526,962 100.0% 3,467,776 615,153 4,082,929 29 190 100,565,517 116,878,984 217,444,501 $ $ 0.0770 0.0530 $ $ $ 7,743,545 6,194,586 13,938,131 Oct 2016 Customer Mix Count Percent 1,160,312 76.0% 13.0% 198,692 1,359,004 89.0% 3,102,547 531,281 3,633,828 28 194 87,071,483 102,828,508 189,899,991 $ $ 0.0780 0.0520 $ $ $ 6,791,576 5,347,082 12,138,658 NC Residential Commercial Note - Industrial impact not estimated because estimates using customer averages would not be reliable due to significant usage differences among customers NC 0205 Rev Impact Matthew Page 12 Bateman Rebuttal Exhibit 4 Page 1 of 1 Duke Energy Progress Docket No. E-2, Sub 1142 North Carolina Retail Operations Corrections to Public Staff Customer Growth Adjustment (in Thousands) Rate Schedule (a) Residential excluding TOU Residential TOU Total NC Residential SGS excluding Constant Load Rate SGS Constant Load Rate Total Small General Service Exhibit SJS-4 NC Retail KWH Adjustment 1 (b) LGS Customer NC Retail KWH Adjustment (c) 201,793,566 4,427,090 206,220,656 Change in Residential Usage per Customer NC Retail KWH Adjustment (d) -450,270,435 -9,878,351 NC Retail KWH Adjustment (e) -248,476,869 -5,451,261 -253,928,130 Revenue Adjustment 3 (g) = ((e) x (f) / 100,000) (g) Cents Per KWH 2 (f) 9.33 $ 14.19 (23,183) -774 -23,956 26,434,163 858,515 27,292,678 26,434,163 858,515 27,292,678 10.03 10.24 2,651 88 2,739 Medium General Service SGS Time of Use Total Medium General Service 51,713,964 64,837,767 116,551,731 51,713,964 64,837,767 116,551,731 8.61 6.66 4,453 4,318 8,771 LGS excluding TOU and RTP LGS Time of Use LGS Real Time Pricing Total Large General Service 68,475,987 85,030,621 55,683,770 209,190,378 68,475,987 85,030,621 -79,259,872 74,246,736 7.68 6.39 5.02 5,259 5,433 -3,979 6,714 Sports Field Lighting Service Street Lighting Service Traffic Signal Lighting Service Total NC Retail 1 -134,943,642 (57,317) 1,611,463 (411,833) 560,397,756 Witness Saillor Exhibit SJS-4 column (b) Average customer class rates are based on annualized revenues divided by per book sales 3 Dollars in thousands 2 (57,317) 1,611,463 (411,833) (34,694,672) 15.54 26.15 7.99 (9) 421 (33) $ (5,353)