Notes to Consolidated Financial Statements for the
Years Ended December 31, 2001, 2000 and 1999
5. JOINT OWNERSHIP OF GENERATING FACILITIES
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JOINT OWNERSHIP OF CATAWBA NUCLEAR STATIONa |
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Owner | |
Ownership Interest | ||
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| North Carolina Municipal Power Agency Number 1 (NCMPA) | 37.5% | ||||
| North Carolina Electric Membership Corporation (NCEMC) | 28.1% | ||||
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Duke Energy Corporation |
12.5% |
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| Piedmont Municipal Power Agency (PMPA) | 12.5% | ||||
| Saluda River Electric Cooperative, Inc. (Saluda River) | 9.4% | ||||
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| 100.0% | |||||
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| a Facility operated by Duke Energy | |||||
As of December 31, 2001, $536 million of property, plant and equipment and $296 million of accumulated depreciation and amortization represented Duke Energy’s undivided interest in Catawba Nuclear Station Units 1 and 2. Duke Energy’s share of operating costs is included in the Consolidated Statements of Income.
Contractual agreements to purchase declining percentages of the generating capacity and energy from the station through the year 2000, resulted in purchased capacity costs subject to rate levelization and deferral. The cost of capacity purchased but not reflected in current rates is reported in the Consolidated Balance Sheets as Current Portion of Purchased Capacity Costs and Purchased Capacity Costs. Those costs were $349 million as of December 31, 2001 and $505 million as of December 31, 2000. Duke Energy expects to recover the accumulated balance, including returns on the deferred balance, through 2004. The amounts levelized in rates are intended to recover total costs, including deferred returns, and are subject to adjustments, including final true-ups. Purchased capacity and energy costs from the other joint owners were not material for 2001, but were approximately $7 million for 2000 and $62 million for 1999. After adjustments for current rates, these amounts are included in the Consolidated Statements of Income as Net Interchange and Purchased Power.
The interconnection agreements also provide for supplemental power sales by Duke Energy to the other joint owners of Catawba Nuclear Station, to satisfy their capacity and energy needs beyond what they retain from the station or acquire elsewhere. NCEMC, Saluda River and NCMPA have elected to buy power outside of these contractual agreements effective January 1, 2001. Management believes this will have no material adverse effect on Duke Energy’s consolidated results of operations, cash flows or financial position. PMPA will continue to receive supplemental power sales from Duke Energy through December 31, 2005.
