Duke Energy 2012 Annual Report Download

Download and view the complete annual report

Please find the complete 2012 Duke Energy annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 308

  • 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
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 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
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196
  • 197
  • 198
  • 199
  • 200
  • 201
  • 202
  • 203
  • 204
  • 205
  • 206
  • 207
  • 208
  • 209
  • 210
  • 211
  • 212
  • 213
  • 214
  • 215
  • 216
  • 217
  • 218
  • 219
  • 220
  • 221
  • 222
  • 223
  • 224
  • 225
  • 226
  • 227
  • 228
  • 229
  • 230
  • 231
  • 232
  • 233
  • 234
  • 235
  • 236
  • 237
  • 238
  • 239
  • 240
  • 241
  • 242
  • 243
  • 244
  • 245
  • 246
  • 247
  • 248
  • 249
  • 250
  • 251
  • 252
  • 253
  • 254
  • 255
  • 256
  • 257
  • 258
  • 259
  • 260
  • 261
  • 262
  • 263
  • 264
  • 265
  • 266
  • 267
  • 268
  • 269
  • 270
  • 271
  • 272
  • 273
  • 274
  • 275
  • 276
  • 277
  • 278
  • 279
  • 280
  • 281
  • 282
  • 283
  • 284
  • 285
  • 286
  • 287
  • 288
  • 289
  • 290
  • 291
  • 292
  • 293
  • 294
  • 295
  • 296
  • 297
  • 298
  • 299
  • 300
  • 301
  • 302
  • 303
  • 304
  • 305
  • 306
  • 307
  • 308

2012 Annual Report and Form 10-K

Table of contents

  • Page 1
    2012 Annual Report and Form 10-K

  • Page 2
    ...Introducing the new Duke Energy. For more than a century, Duke Energy has been a leader of innovation and adaptation. Today, as the nation's largest regulated electric utility, we're even stronger and better able to deliver for our investors, communities and the 7 million customers in six states who...

  • Page 3
    ... and financial objectives. They also achieved the best employee safety record in our company's history. The way they have pulled together bodes well for our future. Our new logo on this annual report cover is symbolic of this new beginning in our first full year since becoming the largest electric...

  • Page 4
    ...other assets (see Notes 4 and 12 to the Consolidated Financial Statements, "Regulatory Matters," and "Goodwill, Intangible Assets and Impairments"). On July 2, 2012, immediately prior to the merger with Progress Energy, Duke Energy executed a one-for-three reverse stock split. All share and earnings...

  • Page 5
    ... clean energy - in safe and sustainable ways - to our customers 24/7. Today's Duke Energy serves 7.2 million retail electricity customers in six states in the Southeast and the Midwest. We also serve 500,000 natural gas customers in Ohio and Kentucky. Our commercial businesses supply power...

  • Page 6
    Duke Energy Corporation 2012 Annual Report Customers and communities through the philanthropy of The Duke Energy Foundation, and the volunteerism and civic leadership of our employees and retirees. Our company also plays an instrumental role in fostering job creation in our communities. In 2012 ...

  • Page 7
    ... our common stock. Based on the current dividend, we are paying more than $2.1 billion in dividends annually. Duke Energy has a proven track record of delivering consistent financial results. From 2013 through 2015, our objectives are to continue growing annual adjusted diluted earnings per share by...

  • Page 8
    .... The six states we serve - North Carolina, South Carolina, Florida, Indiana, Ohio and Kentucky - have attractive economic-development prospects. We have a balanced, diversified mix of fuel sources. In 2012, 44 percent of our combined regulated generation came from coal, 34 percent from nuclear, 21...

  • Page 9
    ... 7,000 megawatts of Midwest commercial electric-generating capacity. These power plants, fueled by coal, natural gas and oil, are well-positioned to meet new environmental regulations. The financial returns of the plants are challenged by the currently low capacity prices and energy margins in the...

  • Page 10
    ... agreement that caps the construction costs that Indiana retail customers will pay at $2.595 billion. Edwardsport will help us meet stricter environmental regulations while using local Indiana coal, an abundant resource. Rate cases l This 860-megawatt nuclear plant in Florida, which began...

  • Page 11
    ... in our commercial businesses. Coal Nuclear Natural Gas Oil Hydro 5% 3% 1% 2005 data as if Duke Energy and Progress Energy were already merged; 2015 data assume Crystal River 1-2 retirement (no definitive decision yet); no replacement power Readiness for the road ahead The history of Duke Energy...

  • Page 12
    ... in one state. In contrast, today's Duke Energy is the largest electric utility in the U.S., with more than $100 billion in assets. We serve more than 7 million retail customers in six states with a diversified generation portfolio. And we have a commercial presence in international markets and in...

  • Page 13
    ... and manages power plants, primarily located in the Midwest, and a renewable energy portfolio. Commercial Power's subsidiary, Duke Energy Retail, serves retail electric customers primarily in Ohio with generation and other energy services at competitive rates. Through Duke Energy Generation Services...

  • Page 14
    ... of Nuclear Power Operations Chair, Nuclear Oversight Committee Member, Audit Committee Director of Duke Energy or its predecessor companies since 2001 James H. (Jim) Hance Jr. Retired Vice Chairman and Chief Financial Officer - Bank of America Corporation Chair, Finance and Risk Management...

  • Page 15
    ...and environmental performance standards, as well as the ability to recover costs, from ratepayers in a timely manner or at all; the ability of Duke Energy's subsidiaries to pay dividends or distributions to Duke Energy Corporation holding company (the Parent); the effect of accounting pronouncements...

  • Page 16
    ... EPS (on a compound annual growth rate ("CAGR") basis). Due to the forward-looking nature of this non-GAAP financial measure for future periods, information to reconcile it to the most directly comparable GAAP financial measure is not available at this time, as management is unable to project...

  • Page 17
    Adjusted Segment Income Duke Energy's 2012 Annual Report includes a discussion of adjusted segment income for the years ended December 31, 2012, 2011 and 2010. The primary performance measure used by management to evaluate segment performance is segment income. Segment income is defined as income ...

  • Page 18
    ... future periods, information to reconcile it to the most directly comparable GAAP financial measure is not available at this time, as management is unable to project special items or mark-to-market adjustments for future periods. Total Available Liquidity Duke Energy's 2012 Annual Report includes...

  • Page 19
    DUKE ENERGY CORPORATION 2012 FORM 10-K

  • Page 20

  • Page 21
    ... No ⌧ Progress Energy Florida Yes Progress Energy Yes No ⌧ Duke Energy Indiana Yes No ⌧ Progress Energy Carolinas Yes No ⌧ Estimated aggregate market value of the common equity held by nonaffiliates of Duke Energy Corporation at June 30, 2012. 30,788,000,000 Number of shares of Common Stock...

  • Page 22
    ...and environmental performance standards, as well as the ability to recover costs from ratepayers in a timely manner or at all; • The Subsidiary Registrants ability to pay dividends or distributions to Duke Energy Corporation holding company (the Parent); • The effect of accounting pronouncements...

  • Page 23
    ... Plan ETR ...Effective tax rate FASB ...Financial Accounting Standards Board FCC ...Federal Communications Commission FERC ...Federal Energy Regulatory Commission FDEP...Florida Department of Environmental Protection Florida Progress ...Florida Progress Corporation FPSC ...Florida Public Service...

  • Page 24
    ... Power Agency IRS ...Internal Revenue Service ITC...Investment Tax Credit IURC ...Indiana Utility Regulatory Commission KPSC ...Kentucky Public Service Commission kV ...Kilovolt kWh ...Kilowatt-hour Levy ...Progress Energy Florida's proposed nuclear plant in Levy County, Fla. Legacy Duke Directors...

  • Page 25
    ... and Duke Energy's wholly owned subsidiary (Merger Sub) and Progress Energy, Inc. (Progress Energy), a North Carolina corporation engaged in the regulated utility business of generation, transmission and distribution and sale of electricity in portions of North Carolina, South Carolina and Florida...

  • Page 26
    ... (QFs). QFs are typically small power production facilities that generate power within a utility company's service territory for which the utility companies are legally obligated to purchase the energy of these facilities at an avoided cost rate. Thus far, all states that have passed restructuring...

  • Page 27
    ... capital cost of this new generation capacity was $4.8 billion. Generation Projects Currently Under Construction. The following information relates to generation projects currently under construction by USFE&G. Edwardsport Integrated Gasification Combined Cycle (IGCC) Plant. Duke Energy Indiana...

  • Page 28
    ... related to potential plant retirements see Note 4 to the Consolidated Financial Statements, "Regulatory Matters." Fuel Supply USFE&G relies principally on coal, natural gas and nuclear fuel for its generation of electric energy. The following table lists USFE&G's sources of power and fuel costs...

  • Page 29
    ...third party. This liquid propane is used in the three propane/air peak shaving plants located in Ohio and Kentucky. Propane/air peak shaving plants vaporize the propane and mix it with natural gas to supplement the natural gas supply during peak demand periods. Duke Energy Ohio maintains natural gas...

  • Page 30
    ...costs, environmental compliance and utility plant. Fuel, fuel-related costs and certain purchased power costs are eligible for recovery by USFE&G's regulated utilities. USFE&G uses coal, oil, hydroelectric, natural gas and nuclear power to generate electricity, thereby maintaining a diverse fuel mix...

  • Page 31
    ... allowed to recover costs related to manufactured gas plant (MGP) sites which are currently used and useful in the provision of natural gas distribution service. Duke Energy Ohio filed its objection to the staff report on February 4, 2013. Duke Energy Ohio expects revised rates, if approved, to go...

  • Page 32
    ...basis using the transmission facilities of the MISO members at rates based on the costs of transmission service. Prior to January 1, 2012, Duke Energy Ohio was a member of MISO. See Note 4 to the Consolidated Financial Statements, Regulatory Matters, for additional information related to Duke Energy...

  • Page 33
    ... its intention to retire Crystal River Unit 3. Duke Energy concluded that it did not have a high degree of confidence that repair could be successfully completed and licensed within estimated costs and schedule, and that it was in the best interests of Progress Energy Florida's customers and joint...

  • Page 34
    ... and regulation could have on Duke Energy's operations. the Duke Energy Ohio load zone. The generation assets began selling all of their electricity into wholesale markets in January 2012 and currently receive wholesale energy margins and capacity revenues from PJM at market rates. Commercial Power...

  • Page 35
    ... Financial Statements, "Acquisitions and Dispositions of Businesses and Sales of Other Assets," for additional information. International Energy's customers include retail distributors, electric utilities, independent power producers, marketers and industrial/commercial companies. International...

  • Page 36
    ... December 2012. Prior to that she had held the position of President of Duke Energy Ohio and Duke Energy Kentucky since 2008. She also held the position of Senior Vice President of Ethics and Compliance and Corporate Secretary for Duke Energy after its merger with Cinergy. Ms. Janson served as Chief...

  • Page 37
    .... is a public utility holding company primarily engaged in the regulated electric utility business. Headquartered in Raleigh, North Carolina, it owns, directly or indirectly, all of the outstanding common stock of its utility subsidiaries, Progress Energy Carolinas and Progress Energy Florida. When...

  • Page 38
    ... and provides regulated transmission and distribution services for natural gas to 500,000 customers. See Item 2. "Properties" for further discussion of Duke Energy Ohio's Franchised Electric and Gas generating facilities. Commercial Power. Commercial Power owns, operates and manages power plants and...

  • Page 39
    ... regulated on a cost-of-service/rate-of-return basis subject to the statutes and regulatory commission rules and procedures of North Carolina, South Carolina, Florida, Ohio, Indiana and Kentucky. If the Duke Energy Registrants' franchised electric earnings exceed the returns established by the state...

  • Page 40
    ... with customers may not necessarily allow for the recovery of capital costs incurred to comply with new environmental regulations. Also, the Duke Energy Registrants may not be able to obtain or maintain from time to time all required environmental regulatory approvals for their operating assets or...

  • Page 41
    ... to generate and sell less electricity at lower prices and may cause some plants to become non-economical to operate; and • capacity and transmission service into, or out of, the Duke Energy Registrants' markets. Coal inventory levels have increased due to mild weather, low natural gas and power...

  • Page 42
    ... the cash ï¬,ow from their operations and to fund investments originally financed through debt instruments with disparate maturities, Duke Energy and the Subsidiary Registrants rely on access to short-term money markets as well as longer-term capital markets and the Subsidiary Registrants also rely...

  • Page 43
    ... replacement capacity resources to continue to service Progress Energy Florida's customer needs. However, there is no definitive plan for new generating capacity at this time. In addition, exit costs to wind down operations and ultimately to retire and decommission the plant could exceed estimates...

  • Page 44
    ... sell its generation capacity and energy is dependent on a number of factors, which include the overall supply and demand of generation and load, other state legislation or regulation, transmission congestion, and its business rules. As a result, the prices in day-ahead and real-time energy markets...

  • Page 45
    ... Rockingham Jocassee Buck Dan River Mill Creek Riverbend(j) Lee Cowans Ford Buck(j) Keowee Lee Distributed generation Other small hydro (26 plants) Total Duke Energy Carolinas Progress Energy Carolinas: Roxboro(b) Brunswick(b) Smith H.F. Lee Harris(b) Wayne County Smith Darlington Mayo(b) Robinson...

  • Page 46
    ...3 nuclear generating unit that began in September 2009 and the related delaminations, no nuclear power was generated in 2012, 2011 or 2010. This generation facility is owned by Progress Energy Florida and various municipal electric companies. In February 2013, Duke Energy announced the retirement of...

  • Page 47
    ... relating to Duke Energy Carolinas', Progress Energy Carolinas', Progress Energy Florida's, Duke Energy Ohio's and Duke Energy Indiana's various series of First Mortgage Bonds. COMMERCIAL POWER The following table provides information related to Commercial Power's electric generation stations...

  • Page 48
    ... in Kansas and the 13 MW capacity INDU Solar Holding JV. Commercial Power's share in these projects in 440 MW. INTERNATIONAL ENERGY The following table provides additional information related to International Energy's electric generation stations as of December 31, 2012. The MW displayed in the...

  • Page 49
    ...Note 5 to the Consolidated Financial Statements, "Commitments and Contingencies - Litigation" and "Commitments and Contingencies - Environmental." Brazilian Regulatory Citations. In September 2007, the State Environmental Agency of Parana (IAP) assessed seven fines against Duke Energy International...

  • Page 50
    ...SECURITIES Duke Energy's common stock is listed for trading on the New York Stock Exchange (NYSE) (ticker symbol DUK). As of February 25, 2013, there were approximately 189,580 common stockholders of record. Common Stock Data by Quarter 2012 Stock Price Range(a) Dividends Declared Per Share(b) First...

  • Page 51
    ... Index 2011 Philadelphia Utility Index 2012 Duke Energy Corporation NYSE CEO Certification Duke Energy has filed the certification of its Chief Executive Officer and Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 as exhibits to this Annual Report on Form...

  • Page 52
    ... and Duke Energy's wholly owned subsidiary (Merger Sub) and Progress Energy, Inc. (Progress Energy), a North Carolina corporation engaged in the regulated utility business of generation, transmission and distribution and sale of electricity in portions of North Carolina, South Carolina and Florida...

  • Page 53
    ... projects with approximately 2,065 megawatts (MW) of capacity. In 2012, Duke Energy Carolinas placed its 620 MW Dan River combined cycle natural gas-fired generation facility and its 825 MW coal-fired Cliffside Unit 6 in service, completing its portion of the ï¬,eet modernization program. Progress...

  • Page 54
    ...Energy Carolinas generation ï¬,eets, Duke Energy is ahead of schedule in achieving fuels savings for customers in the Carolinas, achieving $52 million in fuel costs during the first six months following the merger. These savings are passed to customers. Management of Crystal River Unit 3 Retirement...

  • Page 55
    ...adjusted earnings and adjusted diluted EPS provides useful information to investors, as it provides them an additional relevant comparison of Duke Energy's performance across periods. Management uses this non-GAAP financial measure for planning and forecasting and for reporting results to the Board...

  • Page 56
    .... Prior year financial information has been recast to conform to the current year presentation. None of these changes impacts the reportable operating segments or the Duke Energy Registrants' previously reported consolidated revenues, net income or EPS. Management also uses adjusted segment income...

  • Page 57
    ...(including purchased power and natural gas purchases for resale) primarily related to higher purchases of power in Ohio as a result of the new Ohio ESP, higher volumes of natural gas used in electric generation, higher coal prices, higher purchased power costs in Indiana and the Carolinas, partially...

  • Page 58
    ... higher purchased power costs in Indiana, partially offset by decreased demand from electric retail customers in 2011 compared to the same period in 2010 mainly due to less favorable weather conditions, lower demand and fuel rates in Ohio and Kentucky from natural gas retail customers. Fuel revenues...

  • Page 59
    ... the 2009-2011 ESP which dedicated Commercial Power's coal-fired generation to Duke Energy Ohio's retail customers, net of stability charge revenues, partially offset by the coal-fired generation assets participating in the PJM Interconnection, LLC (PJM) wholesale energy market in 2012, • A $116...

  • Page 60
    ... 31, 2012. The current low energy price projections, as well as recently issued and proposed environmental regulations pertaining to coal and coal-fired generating facilities, could impact future cash ï¬,ows and market valuations of Commercial Power's coal-fired generation assets which could...

  • Page 61
    ... higher transmission, water royalty and purchased power costs. Other Income and Expense, net. The variance was primarily driven by the absence of a $20 million arbitration award in Peru. Interest Expense. The variance was primarily due to lower capitalized interest in Central America and Brazil, as...

  • Page 62
    ...severance costs related to the voluntary severance plan and the consolidation of certain corporate office functions from the Midwest to Charlotte, North Carolina, prior year donations of $56 million to the Duke Energy Foundation, which is a nonprofit organization funded by Duke Energy shareholders...

  • Page 63
    ... Crescent's emergence from bankruptcy. DUKE ENERGY CAROLINAS INTRODUCTION Management's Discussion and Analysis should be read in conjunction with the accompanying Consolidated Financial Statements and Notes for the years ended December 31, 2012, 2011, and 2010. BASIS OF PRESENTATION The results of...

  • Page 64
    ... tax issue related to pollution control equipment exemptions and a sales and use tax refund in 2011 with no comparable refund in 2012, and • A $19 million increase in impairment charges primarily related to the merger with Progress Energy. These charges relate to planned transmission project costs...

  • Page 65
    ..., maintenance and other expense primarily due to higher costs to achieve the merger with Duke Energy and Progress Energy Carolinas' higher nuclear plant outage costs, and • A $261 million increase in Fuel used in electric generation and purchased power primarily due to the impact of establishing...

  • Page 66
    ...to earn a return on the Crystal River Unit 3 investments set at its current authorized overall cost of capital, adjusted to reï¬,ect a return on equity set at 70 percent of the current FPSC authorized return on equity, no earlier than the first billing cycle of January 2017. Progress Energy Florida...

  • Page 67
    ... by lower storm costs. The higher nuclear plant outage costs are primarily due to three nuclear refueling outages in 2012 compared to one outage in 2011, • A $140 million increase in Fuel used in electric generation and purchased power primarily due to the impact of higher rates; higher weather...

  • Page 68
    ... of sales, including all billed and unbilled retail sales, and wholesale sales to incorporated municipalities and to public and private utilities and power marketers. The decrease in Progress Energy Florida's net income for the year ended December 31, 2012 compared to December 31, 2011 was...

  • Page 69
    ...higher purchased power expense as a result of the new ESP, partially offset by reduced gas sales volumes and lower natural gas costs. Interest Expense. The variance was primarily due to lower average debt balances in 2012 compared to 2011 and post in-service carrying charges related to new projects.

  • Page 70
    ... transfer of certain gas-fired generation assets to its wholly owned subsidiary Duke Energy Commercial Asset Management, LLC (DECAM) in the second quarter of 2011. Matters Impacting Future Duke Energy Ohio Results Duke Energy Ohio filed electric and gas distribution rate cases in July 2012. These...

  • Page 71
    ... the construction of the plant and the related regulatory proceedings continue, and further charges could be required in 2013 or beyond. Also as discussed in Note 2 to the Consolidated Financial Statements, "Acquisitions and Sales of Other Assets," Duke Energy Carolinas and Progress Energy Carolinas...

  • Page 72
    ...-party sources, projected commodity pricing data and potential changes in environmental regulations. The business plan assumes the occurrence of certain events in the future, such as the outcome of future rate filings, future approved rates of returns on equity, anticipated earnings/returns related...

  • Page 73
    ... merger between Duke Energy and Progress Energy. In the third quarter of 2011, Commercial Power recorded $79 million of pre-tax impairment charges related to Clean Air Act emission allowances which were no longer expected to be used as a result of the issuance of the final Cross State Air Pollution...

  • Page 74
    ... strength rating. For further information, see Note 5 to the Consolidated Financial Statements, "Commitments and Contingencies." Accounting for Income Taxes Significant management judgment is required in determining Duke Energy's provision for income taxes, deferred tax assets and liabilities...

  • Page 75
    ... 31, 2012, Duke Energy determined its discount rate for U.S. pension and other post-retirement obligations using a bond selection-settlement portfolio approach. This approach develops a discount rate by selecting a portfolio of high quality corporate bonds that generate sufficient cash ï¬,ow...

  • Page 76
    ... the timing and level of internally generated funds. Ultimate cash ï¬,ows from operations are subject to a number of factors, including, but not limited to, regulatory constraints, economic trends and market volatility (see Item 1A. "Risk Factors" for details). Duke Energy's projected capital and...

  • Page 77
    ... common stock related to employee benefit plans Issuance of long-term debt, net Notes payable and commercial paper Dividends paid Other financing items Net cash provided by financing activities $ 2012 2011 2010 Capital, investment and acquisition expenditures $(5,958) $(4,464) Available for sale...

  • Page 78
    ... annual dividend per share was $2.97 in 2011 compared to $2.91 in 2010. Significant Notes Payable and Long-Term Debt Activities - 2012 - 2013. Duke Energy's outstanding long-term debt, including current maturities as of December 31, 2012, includes approximately $17.8 billion assumed in the merger...

  • Page 79
    ... were used to fund capital expenditures and for general corporate purposes. Significant Notes Payable and Long-Term Debt Activities - 2010. In December 2010, Top of the World Wind Energy, LLC, a subsidiary of DEGS, an indirect wholly owned subsidiary of Duke Energy, entered into a long-term loan...

  • Page 80
    ...Ohio Duke Energy Indiana Duke Energy Kentucky BBB BBB+ BBB BBB+ BBB+ BBB+ BBB+ BBB+ Moody's Investor Service Duke Energy's credit ratings are dependent on, among other factors, the ability to generate sufficient cash to fund capital and investment expenditures and pay dividends on its common stock...

  • Page 81
    ... Ohio and Duke Energy Indiana may issue debt and other securities in the future at amounts, prices and with terms to be determined at the time of future offerings. The registration statement also allows for the issuance of common stock by Duke Energy. Duke Energy has paid quarterly cash dividends...

  • Page 82
    ... as Duke Energy cannot predict when open income tax years will close with completed examinations. See Note 24 to the Consolidated Financial Statements, "Income Taxes." (h) Related to future annual funding obligations to nuclear decommissioning trust fund (NDTF) through nuclear power stations' re...

  • Page 83
    ... Financial Statements, "Risk Management, Derivative Instruments and Hedging Activities." Validation of a contract's fair value is performed by an internal group separate from the Duke Energy Registrants' deal origination areas. While the Duke Energy Registrants use common industry practices...

  • Page 84
    ... the event of non-performance. Credit risk associated with the Duke Energy Registrants' service to residential, commercial and industrial customers is generally limited to outstanding accounts receivable. The Duke Energy Registrants mitigate this credit risk by requiring customers to provide a cash...

  • Page 85
    ... Financial Statements, "Employee Benefit Plans," for additional information on pension plan assets. NDTF. As required by the NRC, NCUC, PSCSC and the FPSC, Duke Energy Carolinas, Progress Energy Carolinas and Progress Energy Florida maintain trust funds to fund the costs of nuclear decommissioning...

  • Page 86
    ... the amount of costs recovered through Duke Energy Carolinas', Progress Energy Carolinas' and Progress Energy Florida's rates. See Note 9 to the Consolidated Financial Statements, "Asset Retirement Obligations" for additional information regarding nuclear decommissioning costs. See Note 17 to the...

  • Page 87
    ... NRC and a collaborative industry review, Duke Energy will be able to determine an implementation plan and associated costs. See Item 1A, "Risk Factors," for further discussion of applicable risk factors. New Accounting Standards See Note 1 to the Consolidated Financial Statements, "Summary of Signi...

  • Page 88
    ...Inc. (Progress Energy Florida) Report of Independent Registered Public Accounting Firm ...Statements of Operations and Comprehensive Income ...Balance Sheets ...Statements of Cash Flows ...Statements of Common Stockholder's Equity...94 95 96 97 98 Duke Energy Ohio, Inc. (Duke Energy Ohio) Report of...

  • Page 89
    ...REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Stockholders of Duke Energy Corporation Charlotte, North Carolina We have audited the accompanying consolidated balance sheets of Duke Energy Corporation and subsidiaries (the "Company") as of December 31, 2012 and 2011, and the related...

  • Page 90
    ... attributable to Duke Energy Corporation common shareholders Basic Diluted Net Income attributable to Duke Energy Corporation common shareholders Basic Diluted Dividends declared per share Weighted-average shares outstanding Basic Diluted See Notes to Consolidated Financial Statements 2012 $15,621...

  • Page 91
    ... 2011. Net of $2 million tax benefit in 2012 and $2 million tax benefit in 2011. 2012 $1,782 (75) 19 (28) (1) 9 5 (5) (76) 1,706 10 $1,696 2011 $1,714 (149) (49) (57) 4 8 4 (4) (243) 1,471 1 $1,470 2010 $1,323 79 276 1 3 14 - - 373 1,696 2 $1,694 See Notes to Consolidated Financial Statements...

  • Page 92
    PART II DUKE ENERGY CORPORATION Consolidated Balance Sheets December 31, (in millions) ASSETS Current Assets Cash and cash equivalents Short-term investments Receivables (net of allowance for doubtful accounts of $34 at December 31, 2012 and $35 at December 31, 2011) Restricted receivables of ...

  • Page 93
    ... 2012 and December 31, 2011, respectively Additional paid-in capital Retained earnings Accumulated other comprehensive loss Total Duke Energy Corporation shareholders' equity Noncontrolling interests Total equity Total Liabilities and Equity See Notes to Consolidated Financial Statements 2012 2011...

  • Page 94
    ... Accounts payable Taxes accrued Other current liabilities Other assets Other liabilities Net cash provided by operating activities CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures Investment expenditures Acquisitions Cash acquired from the merger with Progress Energy Purchases of available...

  • Page 95
    ... of long-term debt Issuance of common stock related to employee benefit plans Payments for the redemption of long-term debt Notes payable and commercial paper Distributions to noncontrolling interests Contributions from noncontrolling interests Dividends paid Other Net cash provided by financing...

  • Page 96
    ... Statements of Equity Duke Energy Corporation Shareholders Accumulated Other Comprehensive Income (Loss) Net Gains Pension and Common Additional Foreign (Losses) on OPEB Related Common Stock Common Paid-in Retained Currency Cash Flow Adjustments Stockholders' Noncontrolling Shares Stock Capital...

  • Page 97
    ... II REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors of Duke Energy Carolinas, LLC Charlotte, North Carolina We have audited the accompanying consolidated balance sheets of Duke Energy Carolinas, LLC and subsidiaries (the "Company") as of December 31, 2012 and 2011...

  • Page 98
    PART II DUKE ENERGY CAROLINAS, LLC Consolidated Statements of Operations and Comprehensive Income Years Ended December 31, (in millions) Operating Revenues Operating Expenses Fuel used in electric generation and purchased power Operation, maintenance and other Depreciation and amortization ...

  • Page 99
    ... 2012 and December 31, 2011) Receivables from affiliated companies Note receivable from affiliated companies Inventory Other Total current assets Investments and Other Assets Nuclear decommissioning trust funds Other Total investments and other assets Property, Plant and Equipment Cost Accumulated...

  • Page 100
    ... current assets Increase (decrease) in Accounts payable Accounts payable to affiliated companies Taxes accrued Other current liabilities Other assets Other liabilities Net cash provided by operating activities CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures Purchases of available-for-sale...

  • Page 101
    ...assets from parent Distributions to parent Balance at December 31, 2010 Net income Other comprehensive income Distributions to parent Balance at December 31, 2011 Net income Other comprehensive income Distributions to parent Balance at December 31, 2012 See Notes to Consolidated Financial Statements...

  • Page 102
    ... REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Stockholders of Progress Energy, Inc. Charlotte, North Carolina We have audited the accompanying consolidated balance sheets of Progress Energy, Inc. and subsidiaries (the "Company") as of December 31, 2012 and 2011, and the related...

  • Page 103
    ...Operating Revenues Operating Expenses Fuel used in electric generation and purchased power Operation, maintenance and other Depreciation and amortization Property and other taxes Impairment charges Total operating expenses (Losses) Gains on Sales of Other Assets and Other, net Operating Income Other...

  • Page 104
    ...) ASSETS Current Assets Cash and cash equivalents Receivables (net of allowance for doubtful accounts of $16 at December 31, 2012 and $27 at December 31, 2011) Receivables from affiliated companies Inventory Other Total current assets Investments and Other Assets Nuclear decommissioning trust funds...

  • Page 105
    PART II PROGRESS ENERGY, INC. Consolidated Balance Sheets - (Continued) December 31, (in millions) LIABILITIES AND EQUITY Current Liabilities Accounts payable Accounts payable to affiliated companies Notes payable and commercial paper Notes payable to affiliated companies Taxes accrued Interest ...

  • Page 106
    ... current assets Increase (decrease) in Accounts payable Accounts payable to affiliated companies Taxes accrued Other current liabilities Other assets Other liabilities Net cash provided by operating activities CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures Purchases of available-for-sale...

  • Page 107
    ...amount capitalized Cash paid for (received from) income taxes Significant non-cash transactions: Accrued capital expenditures Asset retirement obligation additions and estimate revisions Capital expenditures financed through capital leases See Notes to Consolidated Financial Statements 2012 2011...

  • Page 108
    ...,181 (in millions) Balance at December 31, 2009 Cumulative effect of change in accounting principle Net income(a) Other comprehensive loss Common stock issuances, including dividend reinvestment and employee benefits Allocation of ESOP shares Common stock dividends Distributions to noncontrolling...

  • Page 109
    ... Progress Energy Carolinas, Inc. Charlotte, North Carolina We have audited the accompanying consolidated balance sheets of Carolina Power & Light Company d/b/a Progress Energy Carolinas, Inc. and subsidiaries (the "Company") as of December 31, 2012 and 2011, and the related consolidated statements...

  • Page 110
    PART II CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. Consolidated Statements of Operations and Comprehensive Income Years Ended December 31, (in millions) Operating Revenues Operating Expenses Fuel used in electric generation and purchased power Operation, maintenance and ...

  • Page 111
    ... (net of allowance for doubtful accounts of $9 at December 31, 2012 and 2011) Receivables from affiliated companies Inventory Other Total current assets Investments and Other Assets Nuclear decommissioning trust funds Other Total investments and other assets Property, Plant and Equipment Cost Cost...

  • Page 112
    ... current assets Increase (decrease) in Accounts payable Accounts payable to affiliated companies Taxes accrued Other current liabilities Other assets Other liabilities Net cash provided by operating activities CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures Purchases of available-for-sale...

  • Page 113
    ... to parent Preferred stock dividends at stated rate Balance at December 31, 2011 Net income Other comprehensive income Stock-based compensation expense Dividend to parent Preferred stock dividends at stated rate Tax dividend Balance at December 31, 2012 See Notes to Consolidated Financial Statements...

  • Page 114
    ..., Inc. Charlotte, North Carolina We have audited the accompanying balance sheets of Florida Power Corporation d/b/a Progress Energy Florida, Inc. (the "Company") as of December 31, 2012 and 2011, and the related statements of operations and comprehensive income, common stockholder's equity, and cash...

  • Page 115
    PART II FLORIDA POWER CORPORATION d/b/a PROGRESS ENERGY FLORIDA, INC. Statements of Operations and Comprehensive Income Years Ended December 31, (in millions) Operating Revenues Operating Expenses Fuel used in electric generation and purchased power Operation, maintenance and other Depreciation ...

  • Page 116
    ... POWER CORPORATION d/b/a PROGRESS ENERGY FLORIDA, INC. Balance Sheets December 31, (in millions) ASSETS Current Assets Cash and cash equivalents Receivables (net of allowance for doubtful accounts of $7 at December 31, 2012 and $18 at December 31, 2011) Receivables from affiliated companies Notes...

  • Page 117
    ... current assets Increase (decrease) in Accounts payable Accounts payable to affiliated companies Taxes accrued Other current liabilities Other assets Other liabilities Net cash provided by operating activities CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures Purchases of available-for-sale...

  • Page 118
    ... stock dividends at stated rate Tax dividend Balance at December 31, 2011 Net income Other comprehensive income Stock-based compensation expense Dividend to parent Preferred stock dividends at stated rate Tax dividend Balance at December 31, 2012 See Notes to Consolidated Financial Statements...

  • Page 119
    PART II REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors of Duke Energy Ohio, Inc. Charlotte, North Carolina We have audited the accompanying consolidated balance sheets of Duke Energy Ohio, Inc. and subsidiaries (the "Company") as of December 31, 2012 and 2011, and...

  • Page 120
    ... - regulated Fuel used in electric generation and purchased power - non-regulated Cost of natural gas Operation, maintenance and other Depreciation and amortization Property and other taxes Goodwill and other impairment charges Total operating expenses Gains on Sales of Other Assets and Other, net...

  • Page 121
    PART II DUKE ENERGY OHIO, INC. Consolidated Balance Sheets December 31, (in millions) ASSETS Current Assets Cash and cash equivalents Receivables (net of allowance for doubtful accounts of $2 at December 31, 2012 and $16 at December 31, 2011) Receivables from affiliated companies Notes receivable...

  • Page 122
    ... Disclosures Cash paid for interest, net of amount capitalized Cash paid (received) for income taxes Significant non-cash transactions: Accrued capital expenditures Transfer of Vermillion Generating Station to Duke Energy Indiana See Notes to Consolidated Financial Statements 2012 $ 175...

  • Page 123
    ... (loss) income Dividends to parent Balance at December 31, 2011 Net income Other comprehensive income Transfer of Vermillion Generating Station to Duke Energy Indiana Dividends to parent Balance at December 31, 2012 See Notes to Consolidated Financial Statements Common Stock $762 - $762...

  • Page 124
    ... II REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors of Duke Energy Indiana, Inc. Charlotte, North Carolina We have audited the accompanying consolidated balance sheets of Duke Energy Indiana, Inc. and subsidiary (the "Company") as of December 31, 2012 and 2011, and...

  • Page 125
    ... Income Taxes Income Tax (Benefit) Expense Net (Loss) Income Other Comprehensive Loss, net of tax Reclassification into earnings from cash ï¬,ow hedges(a) Comprehensive (Loss) Income (a) Net of tax benefit of $1 million in 2012, 2011 and 2010. See Notes to Consolidated Financial Statements 2012...

  • Page 126
    PART II DUKE ENERGY INDIANA, INC. Consolidated Balance Sheets December 31, (in millions) ASSETS Current Assets Cash and cash equivalents Receivables (net of allowance for doubtful accounts of $1 at December 31, 2012 and December 31, 2011) Receivables from affiliated companies Inventory Other ...

  • Page 127
    ... current assets Increase (decrease) in Accounts payable Accounts payable to affiliated companies Taxes accrued Other current liabilities Other assets Other liabilities Net cash provided by operating activities CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures Purchases of available-for-sale...

  • Page 128
    ... from parent Balance at December 31, 2010 Net loss Other comprehensive loss Balance at December 31, 2011 Net loss Other comprehensive loss Transfer of Vermillion Generating Station from Duke Energy Ohio Balance at December 31, 2012 See Notes to Consolidated Financial Statements Common Stock...

  • Page 129
    ...Energy Carolinas' operations include one reportable segment, Franchised Electric. Progress Energy Florida, an indirect wholly owned subsidiary of Duke Energy, is a regulated public utility primarily engaged in the generation, transmission, distribution and sale of electricity in west central Florida...

  • Page 130
    ...reported in the Consolidated Financial Statements and Notes. Although these estimates are based on management's best available information at the time, actual results could differ. Cost-Based Regulation. The Duke Energy Registrants account for their regulated operations in accordance with applicable...

  • Page 131
    ...d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Restricted Cash. The Duke Energy Registrants have restricted cash related...

  • Page 132
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 133
    ..., Progress Energy Carolinas and Progress Energy Florida will store spent fuel on site until such time that it can be transferred to a U.S. Department of Energy (DOE) facility. See Note 9 for further information. Revenue Recognition and Unbilled Revenue. Revenues on sales of electricity and gas are...

  • Page 134
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 135
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 136
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 137
    ... ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) form of ITC or cash grants for renewable energy facilities and renewable generation...

  • Page 138
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 139
    ...North Carolina corporation and Duke Energy's wholly owned subsidiary (Merger Sub) and Progress Energy, a North Carolina corporation engaged in the regulated utility business of generation, transmission and distribution and sale of electricity in portions of North Carolina, South Carolina and Florida...

  • Page 140
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 141
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 142
    ...POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) The excess of the purchase price over the estimated...

  • Page 143
    ... segments: U.S. Franchised Electric and Gas (USFE&G), Commercial Power and International Energy. USFE&G generates, transmits, distributes and sells electricity in North Carolina, South Carolina, west central Florida, central, north central and southern Indiana, and northern Kentucky. USFE&G also...

  • Page 144
    ... integrated gasification combined cycle (IGCC) project. See Note 4 for additional information. USFE&G also recorded the reversal of expenses of $60 million, net of tax of $39 million, related to a prior year Voluntary Opportunity Plan in accordance with Duke Energy Carolinas' 2011 rate case...

  • Page 145
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 146
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 147
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 148
    ... COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Year Ended December 31, 2011 Franchised Electric and Gas $1,474...

  • Page 149
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 150
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 151
    ... peak time energy management programs. The recovery period varies for these costs, with some currently unknown. Duke Energy Carolinas and Progress Energy Florida are required to pay interest on the outstanding liability balance, and Progress Energy Florida collects interest on the outstanding asset...

  • Page 152
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 153
    .... • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) is required to pay dividends solely...

  • Page 154
    ...ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) V.C. Summer Nuclear Station Letter of Intent. In July 2011, Duke Energy Carolinas signed...

  • Page 155
    ... DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) lower building elevations, of which Zapata estimated costs of approximately $2.44 billion with a project duration of 60 months, and; (iv) a "worst case" scenario, assuming Progress Energy Florida performed...

  • Page 156
    ..., 2012, as part of its annual nuclear cost recovery filing, Progress Energy Florida updated the Levy project schedule and cost. Due to lower-thanprojected customer demand, the lingering economic slowdown, uncertainty regarding potential carbon regulation and current low natural gas prices, Progress...

  • Page 157
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 158
    ...power plant at Duke Energy Indiana's Edwardsport Generating Station in Knox County, Indiana with a cost estimate of $1.985 billion and timely recovery of costs related to the project. On January 25, 2008, Duke Energy Indiana received the final air permit from the Indiana Department of Environmental...

  • Page 159
    ...FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) new cost estimate for the IGCC project of $2.35 billion (including $125 million of AFUDC) and for approval of plans...

  • Page 160
    ... d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) approximately $222 million in the third quarter of 2011 related to costs...

  • Page 161
    ...sale of energy between Duke Energy Carolinas and Progress Energy Carolinas, and calculate and allocate the fuel cost savings to the parties. The JDA is subject to review by the PSCSC after one year. Refer to Note 14 for further discussion. Planned and Potential Coal Plant Retirements. The Subsidiary...

  • Page 162
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 163
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 164
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 165
    ... LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) The EPA...

  • Page 166
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 167
    ... CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) fee assessments imposed under two new resolutions promulgated by the Brazilian Electricity...

  • Page 168
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 169
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 170
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 171
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 172
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 173
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 174
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 175
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 176
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 177
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 178
    ... POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) December 31, 2011 (in millions) Tax exempt bonds...

  • Page 179
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 180
    ... by Progress Energy Florida. Duke Energy Ohio and subsidiaries of American Electric Power Company. Inc. and/or The AES Corporation jointly own electric generating units and related transmission facilities in Ohio and Kentucky. Duke Energy Indiana and WVPA jointly own Vermillion Station. Additionally...

  • Page 181
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 182
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 183
    ...LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) estimate...

  • Page 184
    ... PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) December 31, 2011 (in millions) Land Plant - Regulated Electric generation...

  • Page 185
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 186
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 187
    ... PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) • Potentially more stringent environmental regulations from the U.S. EPA...

  • Page 188
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 189
    ... 2012 2011 2010 The Subsidiary Registrants engage in related party transactions, which are generally performed at cost and in accordance with the applicable state and federal commission regulations. Refer to the Consolidated Balance Sheets of Duke Energy Carolinas, Progress Energy, Progress Energy...

  • Page 190
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 191
    ... LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Balance...

  • Page 192
    ... ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) The following table shows the notional amounts for derivatives related to interest rate...

  • Page 193
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 194
    .... • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) December 31, 2012 (in millions) Derivatives Designated as Hedging Instruments Interest rate contracts Current...

  • Page 195
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 196
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 197
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 198
    .... • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) December 31, 2012 (in millions) Derivatives Designated as Hedging Instruments Interest rate contracts Current...

  • Page 199
    ... LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Years Ended December 31, (in millions) Location of Pre-tax...

  • Page 200
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 201
    ... d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Foreign equity prices are translated from their trading currency using...

  • Page 202
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 203
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 204
    ... COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Year Ended December 31, 2010 Available-for-Sale Auction Rate...

  • Page 205
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 206
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 207
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 208
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 209
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 210
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 211
    ... ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Year Ended December 31, 2011 (in millions) Balance at December 31, 2010 Total pre-tax...

  • Page 212
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 213
    ... ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) the length of time over which the market value has been lower than the cost basis...

  • Page 214
    ...PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Duke Energy The following table presents the estimated fair value of short-term...

  • Page 215
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 216
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 217
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 218
    ... CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Progress Energy Carolinas The following table presents the estimated fair value of short-term...

  • Page 219
    ... CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Progress Energy Florida The following table presents the estimated fair value of short-term...

  • Page 220
    ... ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Duke Energy Indiana The following table presents the estimated fair value of short-term...

  • Page 221
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 222
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 223
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 224
    ... d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) DS Cornerstone, LLC, a 50/50 joint venture entity with a third-party...

  • Page 225
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 226
    ... LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Average...

  • Page 227
    ...• FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) The following table shows preferred stock outstanding at December 31, 2012 and 2011. (in millions, except share...

  • Page 228
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 229
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 230
    ... d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) The following table summarizes information about stock-based performance...

  • Page 231
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 232
    ...CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Other Changes in Plan Assets and Projected...

  • Page 233
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 234
    ...PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Amounts Recognized in the Consolidated Balance Sheets: Qualified Pension Plans...

  • Page 235
    ... POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Additional Information: Qualified Pension Plans...

  • Page 236
    ... ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) The discount rate used...

  • Page 237
    ...CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Other Changes in Plan Assets and Projected...

  • Page 238
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 239
    ... ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Amounts Recognized in the Consolidated Balance Sheets: Non-Qualified Pension Plans...

  • Page 240
    ... COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Additional Information: Non-Qualified Pension Plans Information...

  • Page 241
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 242
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 243
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 244
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 245
    ... long-term rate of return on plan assets for Duke Energy Ohio and Duke Energy Indiana was 8.00%, 8.25% and 8.50% as of December 31, 2012, 2011 and 2010, respectively. Applicable to the health care portion of funded post-retirement benefits. Does not apply to Duke Energy Ohio and Duke Energy Indiana...

  • Page 246
    ... ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) The discount rate used...

  • Page 247
    ..., LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Plan...

  • Page 248
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 249
    ...INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) December 31, 2012 (in millions) Duke Energy Master Trust Equity securities Corporate bonds Short-term investment funds Partnership interests Hedge funds Real estate trusts...

  • Page 250
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 251
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 252
    ... PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) 24. INCOME TAXES Duke Energy and its subsidiaries file income tax returns...

  • Page 253
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 254
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 255
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 256
    ... • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Classification of Deferred Tax Assets (Liabilities) in the Consolidated Balance Sheets December 31, 2012 Duke...

  • Page 257
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 258
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 259
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 260
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 261
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 262
    ... PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Condensed Consolidating Balance Sheet December 31, 2012 Progress Energy Parent...

  • Page 263
    ... PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Condensed Consolidating Balance Sheet December 31, 2011 Progress Energy Parent...

  • Page 264
    ... INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2012 Progress Energy Parent $ 327...

  • Page 265
    ... INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2011 Progress Energy Parent $ 756...

  • Page 266
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 267
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 268
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 269
    ...DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements...

  • Page 270
    ... CORPORATION Schedule I - Condensed Parent Company Financial Statements Years Ended December 31, (in millions, except per-share amounts) Operating Revenues Operating Expenses Operating Loss Equity in Earnings of Subsidiaries Other Income and Expenses, net Interest Expense Income Before Income Taxes...

  • Page 271
    ... II DUKE ENERGY CORPORATION Schedule I - Condensed Parent Company Financial Statements - (Continued) December 31, (in millions, except per-share amounts) ASSETS Current Assets Cash and cash equivalents Receivables Receivables from affiliated companies Notes receivable from affiliated companies...

  • Page 272
    ... of available-for-sale securities Distributions from wholly owned subsidiaries Notes receivable from affiliated companies Other Net cash (used in) provided by investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from the: Issuance of long-term debt Issuance of common stock related to...

  • Page 273
    ...Schedule I - Condensed Parent Company Notes to Financial Statements 1. BASIS OF PRESENTATION Duke Energy Corporation (Duke Energy) is a holding company that conducts substantially all of its business operations through its subsidiaries. As specified in the merger conditions issued by various state...

  • Page 274
    ...within Net Cash (Used in) Provided by Investing Activities on the Condensed Statements of Cash Flows. During the years ended December 31, 2012 and 2011, Duke Energy paid advances of $16 million and $15 million, respectively, to Cinergy Corp. for Green Frontier Windpower LLC PTC funding contributions...

  • Page 275
    ...with the participation of management, including the Chief Executive Officer and Chief Financial Officer, the Duke Energy Registrants have evaluated changes in internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred...

  • Page 276
    ... OFFICERS AND CORPORATE GOVERNANCE Duke Energy will provide information that is responsive to this Item 10 in its definitive proxy statement or in an amendment to this Annual Report not later than 120 days after the end of the fiscal year covered by this Annual Report, in either case under...

  • Page 277
    ... all accounting fees and services paid prior to and subsequent to the merger. (c) Audit Fees are fees billed or expected to be billed for professional services for the audit of Duke Energy and the Subsidiary Registrants' financial statements included in the annual report on Form 10-K and the review...

  • Page 278
    ..., 2012, 2011 and 2010 Report of Independent Registered Public Accounting Firm All other schedules are omitted because they are not required, or because the required information is included in the Consolidated Financial Statements or Notes. Duke Energy Carolinas, LLC Consolidated Financial Statements...

  • Page 279
    ... Statements or Notes. Duke Energy Indiana, Inc. Consolidated Financial Statements Consolidated Statements of Operations and Comprehensive Income for the Years Ended December 31, 2012, 2011 and 2010 Consolidated Balance Sheets as of December 31, 2012 and 2011 Consolidated Statements of Cash Flows...

  • Page 280
    ... Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned thereunto duly authorized. Date: February 28, 2013 DUKE ENERGY CORPORATION (Registrants) By: /s/ JAMES E. ROGERS James E. Rogers Chairman, President and Chief Executive Of...

  • Page 281
    ...(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Date: February 28, 2013 DUKE ENERGY CAROLINAS, LLC (Registrant) By: /s/ JAMES E. ROGERS James E. Rogers Chief Executive Officer Pursuant...

  • Page 282
    ... 2013 PROGRESS ENERGY, INC. (Registrant) By: /s/ JAMES E. ROGERS James E. Rogers Chief Executive Officer Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the date...

  • Page 283
    ...Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Date: February 28, 2013 CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY CAROLINAS, INC. (Registrant) By: /s/ JAMES E. ROGERS James E. Rogers Chief Executive...

  • Page 284
    ... Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Date: February 28, 2013 FLORIDA POWER CORPORATION d/b/a PROGRESS ENERGY FLORIDA, INC. (Registrant) By: /s/ JAMES E. ROGERS James E. Rogers Chief Executive...

  • Page 285
    ... 2013 DUKE ENERGY OHIO, INC (Registrant) By: /s/ JAMES E. ROGERS James E. Rogers Chief Executive Officer Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the date...

  • Page 286
    ... DUKE ENERGY INDIANA, INC (Registrant) By: /s/ JAMES E. ROGERS James E. Rogers Chief Executive Officer Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the date...

  • Page 287
    ... 10-K (+). Duke Energy Carolinas Progress Energy Carolinas Progress Energy Florida Duke Energy Ohio Duke Energy Indiana Exhibit Number 2.1 Agreement and Plan of Merger by and among Duke Energy Corporation, Diamond Acquisition Corporation and Progress Energy, Inc. dated as of January 8, 2011 (filed...

  • Page 288
    ...the Florida Power Corporation Current Report on Form 8-K, dated September 20, 2010, File No. 1-3274). Original Indenture (First Mortgage Bonds) between Duke Energy Ohio, Inc. and The Bank of New York (as Trustee) dated as of August 1, 1936 (filed with Registration Statement of Duke Energy Ohio, Inc...

  • Page 289
    ... of New York Trust Company, N.A., as Trustee (filed on Form 8-K of Duke Energy Corporation dated June 16, 2008, File No. 001-32853, as Exhibit 4.1). Duke Energy Duke Energy Carolinas Progress Energy, Inc Progress Energy Carolinas Progress Energy Florida Duke Energy Ohio Duke Energy Indiana...

  • Page 290
    ... Notes due 2017 (filed on Form 8-K of Duke Energy Corporation dated August 16, 2012, File No. 001-32853, as Exhibit 4.1). First and Refunding Mortgage from Duke Energy Carolinas, LLC to The Bank of New York Mellon Trust Company, N.A., successor trustee to Guaranty Trust Company of New York, dated...

  • Page 291
    ...Form 10-Q of Duke Energy Indiana, Inc. (formerly PSI Energy, Inc.) for the quarter ended March 31, 2003, File No. 1-3543). Duke Energy Duke Energy Carolinas X Progress Energy, Inc Progress Energy Carolinas Progress Energy Florida Duke Energy Ohio Duke Energy Indiana 4.6.8 4.6.9 4.6.10 4.6.11...

  • Page 292
    ...(filed as Exhibit B-18 to Florida Power's Registration Statement on Form A-2) (No. 2-5293) filed with the SEC on January 24, 1944). Duke Energy Duke Energy Carolinas Progress Energy, Inc Progress Energy Carolinas Progress Energy Florida Duke Energy Ohio Duke Energy Indiana X 4.12 4.13 4.14...

  • Page 293
    ... Bank, as Trustee (Exhibit 4.1 to Current Report on Form 8-K dated December 12, 2000, File No. 1-3382). Duke Energy Duke Energy Carolinas Progress Energy, Inc Progress Energy Carolinas Progress Energy Florida X Duke Energy Ohio Duke Energy Indiana 4.17 X 4.18 X 4.19 X 4.20 X 4.21...

  • Page 294
    ... to Purchase and Sale Agreement, dated as of May 4, 2006, by and among Duke Energy Americas, LLC, LS Power Generation, LLC (formerly known as LSP Bay II Harbor Holding, LLC), LSP Gen Finance Co, LLC, LSP South Bay Holdings, LLC, LSP Oakland Holdings, LLC, and LSP Morro Bay Holdings, LLC (filed...

  • Page 295
    ... of Duke Energy Corporation, File No. 1-32853, April 4, 2006, as Exhibit 10.1). Amended and Restated Engineering and Construction Agreement, dated as of December 21, 2009, by and between Duke Energy Carolinas, LLC and Shaw North Carolina, Inc. Asset Purchase Agreement by and among Capital & Trading...

  • Page 296
    ...Engineering and Construction Agreement, dated as of December 21, 2009, by and between Duke Energy Carolinas, LLC and Shaw North Carolina, Inc. Duke Energy X Duke Energy Carolinas Progress Energy, Inc Progress Energy Carolinas Progress Energy Florida Duke Energy Ohio Duke Energy Indiana 10.22...

  • Page 297
    ... as of November 18, 2011, among the Corporation, Duke Energy Carolinas, LLC, Duke Energy Ohio, Inc., Duke Energy Indiana, Inc., Duke Energy Kentucky, Inc., Carolina Power and Light Company d/b/a Progress Energy Carolinas, Inc. and Florida Power Corporation, d/b/a Progress Energy Florida, Inc., as...

  • Page 298
    ... Energy, Inc Progress Energy Carolinas Progress Energy Florida Duke Energy Ohio Duke Energy Indiana 10.48** X 10.49** X 10.49.1** Amendment dated as of June 27, 2012, to the Employment Agreement, dated as of February 19, 2009 by and between James E. Rogers and Duke Energy Corporation...

  • Page 299
    ...Progress Energy Florida Duke Energy Ohio Duke Energy Indiana *10.65.1** First Amendment to the Duke Energy Corporation Executive Cash Balance Plan dated as of January 1, 2013. 10.66 Purchase, Construction and Ownership Agreement dated July 30, 1981 between Carolina Power & Light Company and North...

  • Page 300
    ... the SEC on March 31, 2009, File No. 1-15929). Employment Agreement Term Sheet for William D. Johnson in connection with the Agreement and Plan of Merger, dated as of January 8, 2011, by and among Duke Energy Corporation, Diamond Acquisition Corporation and Progress Energy, Inc. (Exhibit C to the...

  • Page 301
    ... Florida Power Corporation d/b/a Progress Energy Florida, Inc. ("PEF"), Southern Natural Gas Company, Florida Gas Transmission Company ("FGT"), and BG LNG Services, LLC ("BG"), including: a) Precedent Agreement by and between Southern Natural Gas Company and PEF, dated December 2, 2004; b) Gas Sale...

  • Page 302
    ... Computation of Ratio of Earnings to Fixed Charges - PROGRESS ENERGY FLORIDA, INC Computation of Ratio of Earnings to Fixed Charges - DUKE ENERGY OHIO Computation of Ratio of Earnings to Fixed Charges - DUKE ENERGY INDIANA List of Subsidiaries Consent of Independent Registered Public Accounting Firm...

  • Page 303
    ...Progress Energy, Inc Progress Energy Carolinas Progress Energy Florida X Duke Energy Ohio Duke Energy Indiana X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X The total amount of securities of the registrant or its subsidiaries...

  • Page 304
    (This page intentionally left blank.)

  • Page 305
    (This page intentionally left blank.)

  • Page 306
    (This page intentionally left blank.)

  • Page 307
    ... online versions of this report. Or contact Investor Relations directly. Duke Energy is an equal opportunity employer. This report is published solely to inform shareholders and is not to be considered an offer, or the solicitation of an offer, to buy or sell securities. InvestorDirect Choice Plan...

  • Page 308
    www.duke-energy.com