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March 13, 2009 |
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ASBESTOS LITIGATION: Duke Energy Cites $1.03B Carolinas Reserves Amounts recognized as asbestos-related reserves related to Duke Energy Corporation's subsidiary, Duke Energy Carolinas, LLC, in the Consolidated Balance Sheets totaled about US$1.031 billion as of Dec. 31, 2008 and US$1.082 billion as of Dec. 31, 2007. The amounts are classified in Other within Deferred Credits and Other Liabilities and Other within Current Liabilities. The Company recognized US$1.044 billion in asbestos-related reserves for its Duke Energy Carolinas as of Sept. 30, 2008. (Class Action Reporter, Nov. 28, 2008) The Company has experienced numerous claims for indemnification and medical cost reimbursement relating to damages for bodily injuries alleged to have arisen from the exposure to or use of asbestos in connection with construction and maintenance activities conducted by Duke Energy Carolinas, LLC on its electric generation plants prior to 1985. The Company has a third-party insurance policy to cover certain losses related to Duke Energy Carolinas' asbestos-related injuries and damages above an aggregate self insured retention of US$476 million. Duke Energy Carolinas' cumulative payments began to exceed the self insurance retention on its insurance policy during the second quarter of 2008. Future payments up to the policy limit will be reimbursed by the Company's third party insurance carrier. The insurance policy limit for potential future insurance recoveries for indemnification and medical cost claim payments is US$1.099 billion in excess of the self insured retention. Insurance recoveries of about US$1.032 billion as of Dec. 31, 2008 and US$1.040 billion as of Dec. 31, 2007 related to this policy are classified in the Consolidated Balance Sheets in Other within Investments and Other Assets and Receivables. Duke Energy Indiana, Inc. and Duke Energy Ohio, Inc. have also been named as defendants or co-defendants in lawsuits related to asbestos at their electric generating stations. Headquartered in Charlotte, N.C., Duke Energy Corporation has 3.9 million electricity customers and about 500,000 gas customers in the U.S. South and Midwest. |
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