CHARLOTTE, N.C., Sept. 5, 2001 – Duke Power has completed an internal review of issues under discussion with the North Carolina Utilities Commission and the Public Service Commission of South Carolina generally related to regulatory accounting matters included in the company’s filings with the commissions for 1998.
One issue under discussion – how to account for mutual insurance distributions – is subject to different interpretations under industry accounting standards, referred to as Generally Accepted Accounting Principles. Duke Power believes it appropriately classified this item at the time. However, the company is evaluating its classification of this item for future years.
Duke Power was also asked to review 13 smaller accounting entries. The company concluded that nine of them were handled correctly. The four remaining items were incorrectly classified in 1998, but did not recur thereafter.
The company provided a full report on all the issues to both commissions on Aug. 28. The issues had no material effect on the company’s reported earnings for 1998, nor did they affect electric rates.
“When these accounting issues were brought to our attention, we immediately launched a comprehensive internal review,” said Duke Power President Bill Coley. “The results of our review, including the four incorrect accounting entries, are described in our report to the commissions.”
“We appreciate the commitment regulators in North Carolina and South Carolina have to thoroughly consider all issues to assure fairness both to electric customers and to the companies that serve them,” Coley said. “And, we take very seriously our obligation to file accurate financial information with regulatory agencies so they can fulfill that commitment. Beyond our regulatory obligations, our culture and practice have been – and will continue to be – to adhere to the highest standards of conduct in all aspects of our business. We will continue to work closely with the utility commissions to review and resolve the issues in question.”
Duke Power, a business unit of Duke Energy (NYSE: DUK – news), is one of the nation’s largest electric utilities and provides safe, reliable, competitively priced electricity to approximately two million customers in North Carolina and South Carolina. Duke Power operates three nuclear generating stations, eight coal-fired stations, 31 hydroelectric stations and numerous combustion turbine units. Total system generating capability is approximately 19,300 megawatts. More information about Duke Power is available on the Internet at: www.dukepower.com.
Duke Energy, a diversified multinational energy company, creates value for customers and shareholders through an integrated network of energy assets and expertise. Duke Energy manages a dynamic portfolio of natural gas and electric supply, delivery and trading businesses – generating revenues of more than $49 billion in 2000. Duke Energy, headquartered in Charlotte, N.C., is a Fortune 100 company traded on the New York Stock Exchange under the symbol DUK. More information about the company is available on the Internet at: www.duke-energy.com.