Duke Energy 2013 Annual Report Download

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2013 Annual Report and Form 10-K
Lighting the way
l

Table of contents

  • Page 1
    Lighting the way 2013 Annual Report and Form 10-K

  • Page 2
    ...$22,772 Balance Sheet Data Total assets Long-term debt including capital leases, redeemable preferred stock of subsidiaries, less current maturities Total Duke Energy Corporation shareholders' equity Earnings Per Share (in dollars) Reported Diluted Adjusted Diluted Dividends Per Share (in dollars...

  • Page 3
    A LETTER FROM OUR CEO Lynn Good Vice Chairman, President and Chief Executive Officer l Dear stakeholders: On behalf of the 28,000 men and women of Duke Energy, I am proud to report that we achieved what we set out to do in 2013. We also made headway in preparing for the future. In the last nine ...

  • Page 4
    ... 2012 merger with Progress Energy, we knew we needed to concentrate on the immediate priorities in our regulated utility business. Our utilities serve 7.2 million 7.2 MILLION retail electric customers retail electric customers in North Carolina, South Carolina, Florida, Indiana, Ohio and Kentucky...

  • Page 5
    MET OUR 2013 GOALS: Completed a $9 billion plant modernization program Put Edwardsport clean coal plant into service Achieved constructive rate case settlements and approvals Met merger-integration and cost-savings milestones Resolved Crystal River Nuclear Plant future Achieved our financial ...

  • Page 6
    TOTAL SHAREHOLDER RETURN* One year: Duke Energy Corporation access debt and equity markets to raise competitively priced capital that is needed to fulfill our obligations to customers today and years from now. In 2013, Duke Energy delivered $4.35 in adjusted diluted earnings per share, in the ...

  • Page 7
    ... as we made progress in resolving business challenges. These strong ratings keep financing costs low so we can maintain competitive prices for customers. Our objective is to achieve between 4 to 6 percent growth in annual adjusted diluted earnings per share through 2016, off a 2013 base. This growth...

  • Page 8
    ...of mostly coal and combined-cycle natural gas plants also performed well, achieving a forced outage rate of 3.5 percent in 2013, building on our improving trend since 2010. Thanks to fleet modernization and joint dispatch, Duke Energy is taking advantage of the lower natural gas prices driven by the...

  • Page 9
    ..., nuclear safety and grid security. Duke Energy's response to this squeeze of lower growth and higher costs is to redouble our efforts to be efficient and productive. This was part of the rationale behind the 2012 merger. Since then, we have consolidated the corporate centers, 2013 ANNUAL REPORT...

  • Page 10
    ... new products and services. Meanwhile, across the nation, new technologies and nontraditional providers are tapping into the growing consumer interest in energy management and on-site power generation. North Carolina has become a leading state for solar development, driven by state policies and tax...

  • Page 11
    ... ways of doing business, and they also create opportunities for companies that anticipate and adjust to change. Based on my observations, I am confident that Duke Energy will successfully adapt to these new realities in ways that benefit our customers and investors. 2013 ANNUAL REPORT 9 l

  • Page 12
    ... was a bridging year for our company - a time of accomplishment, integration and transition. We are achieving greater efficiencies, producing electricity more cleanly and delivering it more reliably. Lynn J. Good Vice Chairman, President and Chief Executive Officer March 7, 2014 10 DUKE ENERGY l

  • Page 13
    ...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, Inc...

  • Page 14
    ... CEO and Chief Nuclear Officer - Entergy Nuclear Member, Nuclear Oversight Committee, Regulatory Policy and Operations Committee Director of Duke Energy or its predecessor companies since 2013 James T. (Jim) Rhodes Retired Chairman, President and Chief Executive Officer - Institute of Nuclear Power...

  • Page 15
    DUKE ENERGY CORPORATION Cautionary Statement Regarding Forward-Looking Information Non-GAAP Financial Measures 2013 Form 10-K A DUKE ENERGY l

  • Page 16
    ... defined benefit pension plans, other post-retirement benefit plans, and nuclear decommissioning trust funds; changes in rules for regional transmission organizations, including changes in rate designs and new and evolving capacity markets, and risks related to obligations created by the default...

  • Page 17
    ...per share amounts) Adjusted segment income Crystal River Unit 3 charges Costs to achieve Progress Energy merger Nuclear development charges Litigation reserve Economic hedges (Mark-to-market) Asset sales Segment income (loss) Income from Discontinued Operations Net Income Attributable to Duke Energy...

  • Page 18
    ... in the Commercial Power segment, as discussed above under "Adjusted Diluted Earnings Per Share ("EPS")". The most directly comparable GAAP measure for adjusted diluted EPS is reported diluted EPS from continuing operations attributable to Duke Energy Corporation common shareholders, which includes...

  • Page 19
    ... Annual Report are incorporated by reference into PART III, Items 10, 11, 12, 13, and 14 hereof. This combined Form 10-K is filed separately by seven registrants: Duke Energy, Duke Energy Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio and Duke Energy Indiana...

  • Page 20
    ... OF TERMS PART I. 1. BUSINESS ...DUKE ENERGY...GENERAL ...BUSINESS SEGMENTS ...GEOGRAPHIC REGIONS ...EMPLOYEES ...EXECUTIVE OFFICERS ...ENVIRONMENTAL MATTERS ...DUKE ENERGY CAROLINAS ...PROGRESS ENERGY ...DUKE ENERGY PROGRESS...DUKE ENERGY FLORIDA...DUKE ENERGY OHIO ...DUKE ENERGY INDIANA...1A...

  • Page 21
    ... Act ESOP ...Employee Stock Ownership Plan ESP ...Electric Security Plan ETR ...Effective tax rate FASB ...Financial Accounting Standards Board FERC ...Federal Energy Regulatory Commission Fitch ...Fitch Ratings, Inc. Florida Progress...Florida Progress Corporation FPSC ...Florida Public Service...

  • Page 22
    ... Waste Policy Act of 1982 NYSE ...New York Stock Exchange Oconee ...Oconee Nuclear Station OPC...Florida Office of Public Counsel OPEB...Other Post-Retirement Benefit Obligations ORS ...South Carolina Office of Regulatory Staff OUCC...Indiana Office of Utility Consumer Counselor OVEC ...Ohio...

  • Page 23
    ... through Duke Energy Carolinas, Duke Energy Progress, Duke Energy Florida, Duke Energy Indiana, and the regulated transmission and distribution operations of Duke Energy Ohio. These electric and gas operations are subject to the rules and regulations of the FERC, the North Carolina Utilities...

  • Page 24
    ...' load forecasts, plans for power supply and wholesale energy sales and related revenues. Wholesale energy sales will be impacted by the extent to which additional generation is available to sell to the wholesale market and the ability of Regulated Utilities to attract new customers and to retain...

  • Page 25
    .... For additional information related to potential plant retirements see Note 4 to the Consolidated Financial Statements, "Regulatory Matters." Cost of Delivered Fuel per Net Kilowatt-hour Generated (Cents)(a)(e) 2011 52.6% 33.0% 1.2% 86.8% 0.9% 87.7% 12.3% 2013 3.67 0.66 4.18 2.79 2012 3.55 0.62...

  • Page 26
    ..., when coupled with the existing fund balance and expected fund earnings, will be sufficient to provide for the cost of future decommissioning. See Note 9 to the Consolidated Financial Statements, "Asset Retirement Obligations," for more information. The Nuclear Waste Policy Act of 1982 (as amended...

  • Page 27
    ... The nuclear power industry faces uncertainties with respect to the cost and long-term availability of disposal sites for spent nuclear fuel and other radioactive waste, compliance with changing regulatory requirements, capital outlays for modifications and new plant construction, the technological...

  • Page 28
    ...2013 South Carolina Rate Case(a) Duke Energy Carolinas 2011 North Carolina Rate Case Duke Energy Carolinas 2011 South Carolina Rate Case Duke Energy Progress 2012 North Carolina Rate Case(a) Duke Energy Ohio 2012 Electric Rate Case Duke Energy Ohio 2012 Natural Gas Rate Case Duke Energy Florida 2013...

  • Page 29
    ... develops transmission projects. For information on Commercial Power's generation facilities, see Item 2, "Properties." Commercial Power also has a retail sales subsidiary, Duke Energy Retail Sales, LLC (Duke Energy Retail), which is certified by the PUCO as a Competitive Retail Electric Supplier...

  • Page 30
    PART I December 31, 2013, Duke Energy sold its interest in DukeNet Communications Holdings, LLC (DukeNet) to Time Warner Cable, Inc. Following the repayment of existing DukeNet indebtedness at closing, transaction expenses and other purchase price adjustments, Duke Energy received cash proceeds of ...

  • Page 31
    ..., including financial information, see Note 3 to the Consolidated Financial Statements, "Business Segments." DUKE ENERGY PROGRESS Duke Energy Progress generates, transmits, distributes and sells electricity in portions of North Carolina and South Carolina. Duke Energy Progress' service area covers...

  • Page 32
    ... recover costs. The Duke Energy Registrants' regulated utility businesses are regulated on a cost-of-service/rate-of-return basis subject to statutes and regulatory commission rules and procedures of North Carolina, South Carolina, Florida, Ohio, Indiana and Kentucky. If the Duke Energy Registrants...

  • Page 33
    ... relatively short periods of time and could reduce the Duke Energy Registrants' revenues and margins, thereby diminishing results of operations. Factors that could impact sales volumes, generation of electricity and market prices at which the Duke Energy Registrants are able to sell electricity are...

  • Page 34
    ... by changes in weather conditions and severe weather. Electric power generation is generally a seasonal business. In most parts of the U.S., and other markets in which Duke Energy operates, demand for power peaks during the warmer summer months, with market prices typically peaking at that time. In...

  • Page 35
    ... historical knowledge and expertise to new employees, or future availability and cost of contract labor may adversely affect the ability to manage and operate the business, especially considering the workforce needs associated with nuclear generation facilities. If the Duke Energy Registrants...

  • Page 36
    ... of the agreements. Market performance and other changes may decrease the value of the NDTF investments of Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida, which then could require significant additional funding. Ownership and operation of nuclear generation facilities also...

  • Page 37
    ... below projected rates of return. Although a number of factors impact funding requirements, a decline in the market value of the assets may increase the funding requirements of the obligations for decommissioning nuclear plants. If Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida...

  • Page 38
    PART I ITEM 2. PROPERTIES REGULATED UTILITIES The following table provides information related to Regulated Utilities' electric generation stations as of December 31, 2013. The MW displayed in the table below are based on summer capacity. Facility Duke Energy Carolinas Oconee Catawba(a) McGuire ...

  • Page 39
    ...Park University of Florida Cogeneration Rio Pinar Total Duke Energy Florida Duke Energy Ohio East Bend(d) Woodsdale Miami Fort (Unit 6) Total Duke Energy Ohio Duke Energy Indiana Gibson(e) Cayuga(f) Wabash River(g) Edwardsport Madison Vermillion(h) Wheatland Noblesville Gallagher Henry County Cayuga...

  • Page 40
    ...', Duke Energy Progress', Duke Energy Florida's, Duke Energy Ohio's and Duke Energy Indiana's various series of First Mortgage Bonds. INTERNATIONAL ENERGY The following table provides additional information related to International Energy's electric generation stations as of December 31, 2013...

  • Page 41
    ..., Commercial Power owns an equity interest in the 585 MW capacity Sweetwater wind projects located in Texas, the 299 MW capacity DS Cornerstone wind projects located in Kansas and the 13 MW capacity INDU Solar Holding JV. Commercial Power's share in these projects is 440 MW. OTHER Duke Energy owns...

  • Page 42
    .... Duke Energy Progress filed a motion to dismiss this lawsuit on November 5, 2013. For additional information, see Note 5 to the Consolidated Financial Statements, "Commitments and Contingencies." Ash Basin Litigation North Carolina Department of Environment and Natural Resources Enforcement...

  • Page 43
    ... 31, 2013, Duke Energy Indiana's Gibson steam station violated opacity limits contained in its Title V permit. Duke Energy Indiana expects to enter into a settlement agreement with the EPA in the first quarter of 2014, which would require payment of a civil penalty of $199,000. ITEM 4. MINE SAFETY...

  • Page 44
    ... by the Board of Directors. Securities Authorized for Issuance Under Equity Compensation Plans Duke Energy's operating subsidiaries have certain restrictions on their ability to transfer funds in the form of dividends or loans to Duke Energy. See Note 4 to the Consolidated Financial Statements...

  • Page 45
    ...2013 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 10-K for the year ended December 31, 2013...

  • Page 46
    ...: (i) 2013 charges related to Crystal River Unit 3 and nuclear development costs (see Note 4 to the Consolidated Financial Statements, "Regulatory Matters"); (ii) the 2012 merger with Progress Energy (see Note 2 to the Consolidated Financial Statements, "Acquisitions, Dispositions and Sales of Other...

  • Page 47
    ... the Fleet Modernization Program During 2013, Duke Energy completed its $9 billion ï¬,eet modernization program. This program added approximately 6,600 MW of new combined-cycle natural gas and state-of-the-art coal capacity in North Carolina, South Carolina and Indiana. This new generation will...

  • Page 48
    ...per share amounts) Adjusted segment income Crystal River Unit 3 charges Costs to achieve Progress Energy merger Nuclear development charges Litigation reserve Economic hedges (Mark-to-market) Asset sales Segment income (loss) Income from Discontinued Operations Net Income Attributable to Duke Energy...

  • Page 49
    ...the year ended December 31, 2012, compared to 2011, was primarily due to: • The inclusion of Progress Energy results beginning in July 2012; and • Increased retail pricing and riders primarily resulting from the implementation of revised rates in North Carolina and South Carolina for Duke Energy...

  • Page 50
    ... Year Ended December 31, 2013 as Compared to 2012 Regulated Utilities' results were positively impacted by 2012 impairment and other charges related to the Edwardsport IGCC plant, higher retail pricing and rate riders, the inclusion of Progress Energy results for the first six months of 2013, a net...

  • Page 51
    ...(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 52
    ... with higher tax rates. Year Ended December 31, 2012 as Compared to 2011 International Energy's results were negatively impacted by unfavorable exchange rates in Brazil, a 2011 Peru arbitration award, and lower margins in Central America, partially offset by higher average prices and volumes...

  • Page 53
    ... mark-to-market revenues on nonqualifying power and capacity hedge contracts, consisting of mark-tomarket gains of $96 million in 2013 compared to losses of $6 million in 2012; • A $68 million increase for the gas-fired generation assets driven primarily by higher power prices, partially offset...

  • Page 54
    ... value to estimated sales proceeds less cost to sell. In 2013, a FERC Administrative Law Judge issued an initial decision holding that Commercial Power is responsible for certain MVP costs, a type of Transmission Expansion Planning (MTEP) cost, approved by MISO prior to the date of Commercial Power...

  • Page 55
    ...pretax loss. The effective tax rates for the years ended December 31, 2013 and 2012 were 55.1 percent and 41.1 percent, respectively. Year Ended December 31, 2012 as Compared to 2011 Other's results were negatively impacted by charges related to the Progress Energy merger and higher interest expense...

  • Page 56
    ... decrease in impairment charges related to the merger with Progress Energy. These charges relate to planned transmission project costs for which recovery is not expected, and certain costs associated with mitigation sales pursuant to merger settlement agreements with the FERC. Partially offset by...

  • Page 57
    ... A $117 million increase at Duke Energy Progress due to revised rates in North Carolina; • A $57 million increase in nuclear cost-recovery clause revenues at Duke Energy Florida primarily due to an increase in recovery rates related to the Crystal River Unit 3 uprate project, prior period true-ups...

  • Page 58
    ... other charges related to the decision to retire Crystal River Unit 3. See Note 4 to the Consolidated Financial Statements, "Regulatory Matters," for additional information; and • A $138 million increase in depreciation and amortization at Duke Energy Florida primarily due to higher nuclear cost...

  • Page 59
    ... of nuclear outage costs; and • A $32 million decrease in impairment charges primarily related to the merger with Duke Energy. These charges relate to planned transmission projects for which recovery is not expected, and certain costs associated with mitigation sales pursuant to merger settlement...

  • Page 60
    .... In 2013, Duke Energy Florida recorded impairment and other charges primarily related to Crystal River Unit 3 and Levy. In 2012, Duke Energy Florida recorded impairment and other charges related to the decision to retire Crystal River Unit 3. See Note 4 to the Consolidated Financial Statements...

  • Page 61
    ...tax rate was primarily due to the impact of lower AFUDC equity and lower impairment charges. DUKE ENERGY OHIO 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, 2013, 2012...

  • Page 62
    ...Consolidated Financial Statements, "Regulatory Matters," for additional information. DUKE ENERGY INDIANA 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, 2013, 2012, and...

  • Page 63
    ... IGCC plant. In 2013, Duke Energy Florida recorded a charge of $295 million related to the retired Crystal River Unit 3 Nuclear Station. Also as discussed in Note 2 to the Consolidated Financial Statements, "Acquisitions and Sales of Other Assets", Duke Energy Carolinas and Duke Energy Progress...

  • Page 64
    ... legislative actions related to tax credit extensions, long-term growth rate assumptions, the market price of power and discount rates. As of December 31, 2013, the Renewables reporting unit's estimated fair value of equity exceeded the carrying value of equity. Duke Energy continues to monitor...

  • Page 65
    ... 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 to match the timing of projected benefit payments...

  • Page 66
    ... Effect on other post-retirement benefit obligation at December 31, 2013 +1.0% $ 25 40 -1.0% $ (20) (36) For further information, see Note 21 to the Consolidated Financial Statements, "Employee Benefit Plans." LIQUIDITY AND CAPITAL RESOURCES Sources and Uses of Cash Duke Energy relies primarily...

  • Page 67
    ...Parent) Tax-exempt Bonds Duke Energy Progress Other Current maturities of long-term debt $ January 2014 0.105% 167 387 2,104 February 2014 March 2014 September 2014 6.300% 6.050% 3.950% $ 750 300 500 Maturity Date Interest Rate December 31, 2013 DIVIDEND PAYMENTS Duke Energy has paid quarterly cash...

  • Page 68
    ... debt. This preference is the result of generally higher credit ratings for first mortgage bonds and secured debt, which typically result in lower interest costs. Duke Energy Corporation primarily issues unsecured debt. Duke Energy's capitalization is balanced between debt and equity as shown in...

  • Page 69
    ...-cash adjustments (depreciation and amortizations, higher Edwardsport charges, severance expense and other Progress Energy merger related costs), resulting from the inclusion of Progress Energy's results beginning July 2, 2012 and the impact of the 2011 North Carolina and South Carolina rate cases...

  • Page 70
    ... commercial paper as well as for general corporate purposes. (f) Represents the conversion of construction loans related to a renewable energy project issued in December 2012 to term loans. No cash proceeds were received in conjunction with the conversion. The term loans have varying maturity dates...

  • Page 71
    ...term debt. Proceeds were used to repay current maturities of $500 million, a portion of outstanding commercial paper and notes payable to affiliated companies. Proceeds were used to repay current maturities of $420 million, as well as for general corporate purposes, including the funding of capital...

  • Page 72
    ... changes in the market price of electricity or other energy commodities. Duke Energy's exposure to commodity price risk is inï¬,uenced by a number of factors, including contract size, length, market liquidity, location and unique or specific contract terms. Duke Energy employs established policies...

  • Page 73
    .... Capacity revenues are 100 percent fixed in PJM through May 2017. International Energy generally hedges its expected generation using long-term bilateral power sales contracts when favorable market conditions exist and it is subject to wholesale commodity price risks for electricity not sold...

  • Page 74
    ... Charges Coverage Ratios The Duke Energy Registrants' fixed charges coverage ratios, as calculated using SEC guidelines, are included in the table below. Years Ended December 31, 2013 Duke Energy Duke Energy Carolinas Progress Energy Duke Energy Progress Duke Energy Florida Duke Energy Ohio Duke...

  • Page 75
    ... ensure protection against hazards in the current design basis, and re-evaluate emergency communications systems and staffing levels. Duke Energy is committed to compliance with all safety enhancements ordered by the NRC in connection with the March 12, 2012, regulatory orders noted above, the cost...

  • Page 76
    ... 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 77
    ...Carolinas, LLC (Duke Energy Carolinas) Report of Independent Registered Public Accounting Firm ...Consolidated Statements of Operations and Comprehensive Income ...Consolidated Balance Sheets...Consolidated Statements of Cash Flows ...Consolidated Statements of Changes in Member's Equity ...Progress...

  • Page 78
    ... 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, 2013 and 2012, and the related consolidated statements of operations, comprehensive income, changes in equity...

  • Page 79
    ...generation and purchased power - regulated Fuel used in electric generation and purchased power - nonregulated Cost of natural gas and coal sold Operation, maintenance and other Depreciation and amortization Property and other taxes Impairment charges Total operating expenses (Losses) Gains on Sales...

  • Page 80
    ...from available-for-sale securities Other Comprehensive Loss, net of tax Comprehensive Income Less: Comprehensive Income Attributable to Noncontrolling Interests Comprehensive Income Attributable to Duke Energy Corporation (a) Net of $17 million tax expense in 2013, $9 million tax expense in 2012 and...

  • Page 81
    ... Cost Accumulated depreciation and amortization Generation facilities to be retired, net Net property, plant and equipment Regulatory Assets and Deferred Debits Regulatory assets Other Total regulatory assets and deferred debits Total Assets See Notes to Consolidated Financial Statements 2013 2012...

  • Page 82
    ... credits and other liabilities Commitments and Contingencies Preferred Stock of Subsidiaries Equity Common stock, $0.001 par value, 2 billion shares authorized; 706 million and 704 million shares outstanding at December 31, 2013 and 2012, respectively Additional paid-in capital Retained earnings...

  • Page 83
    ... opportunity cost deferral Accrued pension and other post-retirement benefit costs Contributions to qualified pension plans (Increase) decrease in Net realized and unrealized mark-to-market and hedging transactions Receivables Inventory Other current assets Increase (decrease) in Accounts payable...

  • Page 84
    ...of common stock related to employee benefit plans Payments for the: Redemption of long-term debt Redemption of preferred stock of a subsidiary Notes payable and commercial paper Distributions to noncontrolling interests Contributions from noncontrolling interests Dividends paid Other Net cash (used...

  • Page 85
    ... STATEMENTS OF CHANGES IN EQUITY Duke Energy Corporation Shareholders Accumulated Other Comprehensive Income (Loss) Unrealized Net Gains Gains (Losses) Common Additional Foreign (Losses) on on Available- Pension and Common Stock Common Paid-in Retained Currency Cash Flow for-Sale OPEB Related...

  • Page 86
    ...Charlotte, North Carolina We have audited the accompanying consolidated balance sheets of Duke Energy Carolinas, LLC and subsidiaries (the "Company") as of December 31, 2013 and 2012, and the related consolidated statements of operations and comprehensive income, changes in member's equity, and cash...

  • Page 87
    ... 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 Property and...

  • Page 88
    ...affiliated companies Inventory Regulatory assets Other Total current assets Investments and Other Assets Nuclear decommissioning trust funds Other Total investments and other assets Property, Plant and Equipment Cost Accumulated depreciation and amortization Generation facilities to be retired, net...

  • Page 89
    ... of nuclear fuel) Equity component of AFUDC FERC mitigation costs Community support and charitable contributions expense Gains on sales of other assets and other, net Impairment charges Deferred income taxes Voluntary opportunity cost deferral Accrued pension and other post-retirement benefit costs...

  • Page 90
    PART II DUKE ENERGY CAROLINAS, LLC CONSOLIDATED STATEMENTS OF CHANGES IN MEMBER'S EQUITY Accumulated Other Comprehensive Income (Loss) Unrealized Losses on Availablefor-Sale Securities $ (2) - - - $ (2) - 1 - $ (1) - - - $ (1) (in millions) Balance at December 31, 2010 Net income Other ...

  • Page 91
    .... Charlotte, North Carolina We have audited the accompanying consolidated balance sheets of Progress Energy, Inc. and subsidiaries (the "Company") as of December 31, 2013 and 2012, and the related consolidated statements of operations and comprehensive income, changes in common stockholder's equity...

  • Page 92
    PART II PROGRESS ENERGY, 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 other Depreciation and amortization Property and ...

  • Page 93
    ... Cost Accumulated depreciation and amortization Generation facilities to be retired, net Net property, plant and equipment Regulatory Assets and Deferred Debits Regulatory assets Other Total regulatory assets and deferred debits Total Assets See Notes to Consolidated Financial Statements 2013 2012...

  • Page 94
    ... costs Asset retirement obligations Regulatory liabilities Other Total deferred credits and other liabilities Commitments and Contingencies Preferred Stock of Subsidiaries Common Stockholder's Equity Common stock, $0.01 par value, 100 shares authorized and outstanding at December 31, 2013 and 2012...

  • Page 95
    ... expense FERC mitigation costs Community support and charitable contributions expense Losses (gains) on sales of other assets Impairment charges Deferred income taxes Amount to be refunded to customers Accrued pension and other post-retirement benefit costs Contributions to qualified pension plans...

  • Page 96
    ..., net of amount capitalized Cash received from income taxes Significant non-cash transactions: Accrued capital expenditures Asset retirement obligation additions Capital expenditures financed through capital leases See Notes to Consolidated Financial Statements 2013 2012 2011 $ 845 - (1,196...

  • Page 97
    ... for merger with Duke Energy Other Balance at December 31, 2012 Net income Other comprehensive (loss) income Premium on the redemption of preferred stock of subsidiaries Distributions to noncontrolling interests Other Balance at December 31, 2013 Common Additional Stock Paid-in Capital $ 7,332...

  • Page 98
    ... Duke Energy Progress, Inc. Charlotte, North Carolina We have audited the accompanying consolidated balance sheets of Duke Energy Progress, Inc. and subsidiaries (the "Company") as of December 31, 2013 and 2012, and the related consolidated statements of operations and comprehensive income, changes...

  • Page 99
    ... II DUKE ENERGY PROGRESS, 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 other Depreciation and amortization Property and...

  • Page 100
    ... Asset retirement obligations Regulatory liabilities Other Total deferred credits and other liabilities Commitments and Contingencies Preferred Stock Common Stockholder's Equity Common stock, no par value, 200 million shares authorized; 160 million shares outstanding at December 31, 2013 and 2012...

  • Page 101
    ... of available-for-sale securities Notes receivable from affiliated companies Other Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from the issuance of long-term debt Payments for the: Redemption of long-term debt Redemption of preferred stock Notes payable and...

  • Page 102
    ... stock dividends at stated rate Tax dividend Balance at December 31, 2012 Net income Premium on the redemption of preferred stock Balance at December 31, 2013 See Notes to Consolidated Financial Statements Common Stock $ 2,130 - - 18 - - $ 2,148 - - 11 - - - $ 2,159 - - $ 2,159 Retained Earnings...

  • Page 103
    ...of Directors of Duke Energy Florida, Inc. Charlotte, North Carolina We have audited the accompanying balance sheets of Duke Energy Florida, Inc. (the "Company") as of December 31, 2013 and 2012, and the related statements of operations and comprehensive income, changes in common stockholder's equity...

  • Page 104
    ... II DUKE 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 and amortization Property and other taxes...

  • Page 105
    ... Asset retirement obligations Regulatory liabilities Other Total deferred credits and other liabilities Commitments and Contingencies Preferred Stock Common Stockholder's Equity Common Stock, no par; 60 million shares authorized; 100 shares outstanding at December 31, 2013 and 2012 Retained earnings...

  • Page 106
    ... of available-for-sale securities Insurance proceeds Notes receivable from affiliated companies Other Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from the issuance of long-term debt Payments for the: Redemption of long-term debt Redemption of preferred stock...

  • Page 107
    ... compensation expense Dividend to parent Preferred stock dividends at stated rate Tax dividend Balance at December 31, 2012 Net income Other comprehensive loss Dividend to parent Premium on the redemption of preferred stock Balance at December 31, 2013 See Notes to Consolidated Financial Statements...

  • Page 108
    .... Charlotte, North Carolina We have audited the accompanying consolidated balance sheets of Duke Energy Ohio, Inc. and subsidiaries (the "Company") as of December 31, 2013 and 2012, and the related consolidated statements of operations and comprehensive income, changes in common stockholder's equity...

  • Page 109
    ... used in electric generation and purchased power - regulated Fuel used in electric generation and purchased power - nonregulated Cost of natural gas Operation, maintenance and other Depreciation and amortization Property and other taxes Impairment charges Total operating expenses Gains on Sales of...

  • Page 110
    ... Asset retirement obligations Regulatory liabilities Other Total deferred credits and other liabilities Commitments and Contingencies Common Stockholder's Equity Common stock, $8.50 par value, 120,000,000 shares authorized; 89,663,086 shares outstanding at December 31, 2013 and December 31, 2012...

  • Page 111
    ... for interest, net of amount capitalized Cash paid for (received from) income taxes Significant non-cash transactions: Accrued capital expenditures Transfer of Vermillion Generating Station to Duke Energy Indiana See Notes to Consolidated Financial Statements 2013 $ 102 357 (1) (5) 5 98 17 - 17...

  • Page 112
    ... Net income Other comprehensive income Transfer of Vermillion Generating Station to Duke Energy Indiana Dividends to parent Balance at December 31, 2012 Net income Other comprehensive income Balance at December 31, 2013 See Notes to Consolidated Financial Statements $(22) $5,464 194 (6) (485) $(28...

  • Page 113
    ... Charlotte, North Carolina We have audited the accompanying consolidated balance sheets of Duke Energy Indiana, Inc. and subsidiary (the "Company") as of December 31, 2013 and 2012, and the related consolidated statements of operations and comprehensive income, changes in common stockholder's equity...

  • Page 114
    ... II DUKE ENERGY INDIANA, 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 other Depreciation and amortization Property and...

  • Page 115
    ... retirement obligations Regulatory liabilities Other Total deferred credits and other liabilities Commitments and Contingencies Common Stockholder's Equity Common Stock, no par; $0.01 stated value, 60,000,000 shares authorized; 53,913,701 shares outstanding at December 31, 2013 and December 31, 2012...

  • Page 116
    ... end of period Supplemental Disclosures: Cash paid for interest, net of amount capitalized Cash paid for income taxes Significant non-cash transactions: Accrued capital expenditures Transfer of Vermillion Generating Station from Duke Energy Ohio See Notes to Consolidated Financial Statements 2013...

  • Page 117
    ... 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 Net income Other comprehensive loss Dividend to parent Balance at December 31, 2013 See Notes to Consolidated Financial Statements 99

  • Page 118
    ... not reflected on the financial statements of Progress Energy, Duke Energy Progress and Duke Energy Florida. See Note 2 for additional information regarding the merger. On July 2, 2012, just prior to the close of the merger, Duke Energy executed a one-for-three reverse stock split with respect to...

  • Page 119
    ...ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Sheets of the Duke Energy Registrants at December 31, 2013 and 2012...

  • Page 120
    ... CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY 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 121
    ...CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) allowances are based on the cost to acquire the allowances or, in the case...

  • Page 122
    ... • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) future cash flows, selection of discount rates and cost...

  • Page 123
    ... service period, or for certain share-based awards until the employee becomes retirement eligible, if earlier. Compensation cost is recognized as expense or capitalized as a component of property, plant and equipment. See Note 20 for further information. Income Taxes Duke Energy and its subsidiaries...

  • Page 124
    ...DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) through increasing income taxes payable, reducing income tax refunds receivable or changing deferred taxes. Tax-related...

  • Page 125
    ... CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Purchase Price Total consideration transferred was based on the closing...

  • Page 126
    ... CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Accounting Charges Related to the Merger...

  • Page 127
    ... Company Limited (Bison), Duke Energy's wholly owned, captive insurance subsidiary, and contributions to the Duke Energy Foundation. On December 31, 2013, Duke Energy sold its interest in DukeNet Communications Holdings, LLC (DukeNet) to Time Warner Cable, Inc. See Note 12 for further information...

  • Page 128
    ... an impairment charge related to Duke Energy Florida's proposed nuclear plant in Levy County, Florida (Levy) site. See Note 4 for additional information about the Harris site and Levy site impairments. (f) Other includes after-tax costs to achieve the merger with Progress Energy. See Notes 2 and 25...

  • Page 129
    ..., Duke Energy. See Note 13 for additional information. All of Duke Energy Ohio's revenues are generated domestically and its long-lived assets are all in the U.S. $ (a) Change in amounts of long-lived assets in Latin America includes foreign currency translation adjustments on property, plant and...

  • Page 130
    ... II DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Year Ended December 31, 2013...

  • Page 131
    ... ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) DUKE ENERGY CAROLINAS, PROGRESS ENERGY, DUKE ENERGY PROGRESS, DUKE...

  • Page 132
    ... II DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) December 31, 2013 Duke Energy...

  • Page 133
    ... periodic benefit costs for pension and OPEB plans. See Note 21 for additional detail. Retired generation facilities. Duke Energy Florida earns a reduced return on a substantial portion of the amount of regulatory asset associated with the retirement of Crystal River Unit 3 not included in rate base...

  • Page 134
    ... generation are also allowed to operate in Ohio once certified by the PUCO. The FERC approves rates for electric sales to wholesale customers served under cost-based rates (excluding Ohio and Indiana), as well as sales of transmission service. Duke Energy Carolinas 2013 North Carolina Rate Case...

  • Page 135
    ...information addressing seismic hazard evaluation resulting from recommendations of the Fukushima Near-Term Task Force. Duke Energy Progress 2012 North Carolina Rate Case On May 30, 2013, the NCUC approved a settlement agreement related to Duke Energy Progress' request for a rate increase. The Public...

  • Page 136
    ... included in customer rates as established in Duke Energy Florida's most recent fully litigated base rate proceeding, effective 2010. Beginning in February 2013, the retail portion of operations and maintenance costs, payroll taxes, property taxes, and depreciation associated with Crystal River Unit...

  • Page 137
    ...million increase in base revenue effective with the first billing cycle of January 2013. Costs associated with Crystal River Unit 3 investments were removed from retail rate base effective with the first billing cycle of January 2013. Duke Energy Florida is accruing, for future rate-setting purposes...

  • Page 138
    ... general rate case at a 10.5 percent return on equity. On October 8, 2013, Duke Energy Florida issued a request for proposals to evaluate alternatives for an additional generation facility. Duke Energy Florida is currently reviewing bids received on December 9, 2013. Cost of Removal Reserve The 2012...

  • Page 139
    ...II DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) the optimal corporate structure...

  • Page 140
    ...those needs. The IRPs filed by the Subsidiary Registrants in 2013, 2012 and 2011 included planning assumptions to potentially retire certain coal-fired generating facilities in South Carolina, Florida, Indiana and Ohio earlier than their current estimated useful lives. The facilities do not have the...

  • Page 141
    ... II DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) The cost of the Duke Energy...

  • Page 142
    PART II DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Coverage continues at 100 ...

  • Page 143
    PART II DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Additional losses in ...

  • Page 144
    ...CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) planning purposes, the Duke Energy Registrants currently estimate the cost...

  • Page 145
    PART II DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) It is not possible to ...

  • Page 146
    ... The lawsuit claims the DOE breached a contract in failing to accept spent nuclear fuel under the Nuclear Waste Policy Act of 1982 and asserts damages for the cost of on-site storage. Claims for all periods prior to 2006 have been resolved. Duke Energy Progress and Duke Energy Florida assert damages...

  • Page 147
    ... ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) OTHER COMMITMENTS AND CONTINGENCIES...

  • Page 148
    ...Energy Progress and Duke Energy Florida, respectively, related to power purchase agreements that are not accounted for as leases in their financial statements because of grandfathering provisions in GAAP. (c) Substantially all tax-exempt bonds are secured by first mortgage bonds or letters of credit...

  • Page 149
    ...Energy Progress and Duke Energy Florida, respectively, related to power purchase agreements that are not accounted for as leases on their financial statements because of grandfathering provisions in GAAP. (c) Substantially all tax-exempt bonds are secured by first mortgage bonds or letters of credit...

  • Page 150
    ...II DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) CURRENT MATURITIES OF LONG-TERM...

  • Page 151
    ... II DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) December 31, 2012 Duke Energy...

  • Page 152
    ... II DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Year Ended December 31, 2012...

  • Page 153
    ... ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) OTHER DEBT MATTERS In September 2013...

  • Page 154
    ...PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Duke Energy has guaranteed certain issuers of surety bonds, obligating itself to make payment...

  • Page 155
    ... ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) The following table presents the share...

  • Page 156
    ... of cash flows(f) Balance at December 31, 2013(e) (a) (b) (c) (d) Represents asset retirement obligations resulting from the merger with Progress Energy. See Note 2 for additional information. Substantially all accretion expense for the years ended December 31, 2013 and 2012 relates to Duke Energy...

  • Page 157
    PART II DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) NUCLEAR OPERATING LICENSES...

  • Page 158
    ... II DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) December 31, 2012 Estimated...

  • Page 159
    ... CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) 11. GOODWILL AND INTANGIBLE ASSETS Duke Energy Ohio (in millions) Balance...

  • Page 160
    ... II DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) December 31, 2012 Duke Energy...

  • Page 161
    ...consummation of the merger between Duke Energy and Progress Energy, Duke Energy Carolinas and Duke Energy Progress began to participate in a JDA. The JDA allows the collective dispatch of power plants between service territories to reduce customer rates. Revenues from the sale of power under the JDA...

  • Page 162
    ... FERC Mitigation in connection with Duke Energy's merger with Progress Energy. See Note 2 for further information. Duke Energy Carolinas' undesignated contracts are primarily associated with forward sales and purchases of electricity. Duke Energy Progress' and Duke Energy Florida's undesignated...

  • Page 163
    ... • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) December 31, 2012 Duke Energy Electricity (Gigawatt-hours...

  • Page 164
    ... • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) The tables below show the balance sheet location of...

  • Page 165
    ... DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) December 31, 2013 (in millions) 2012 (in millions) Location...

  • Page 166
    PART II DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) December 31, 2013 (in ...

  • Page 167
    ...Balance Sheets where the pretax gains and losses were reported. Years Ended December 31, (in millions) Location of Pretax Gains and (Losses) Recognized in Earnings Commodity contracts Operating revenues Fuel used in electric generation and purchased power Other income and expenses, net Interest rate...

  • Page 168
    ... • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY 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...

  • Page 169
    PART II DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) The following table shows ...

  • Page 170
    PART II DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) DUKE ENERGY OHIO The ...

  • Page 171
    PART II DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) DUKE ENERGY INDIANA The ...

  • Page 172
    ... ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) The following tables show information...

  • Page 173
    ... DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) 15. INVESTMENTS IN DEBT AND EQUITY SECURITIES The Duke Energy...

  • Page 174
    .... • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY 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 investments in available-for-sale securities...

  • Page 175
    ... DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) DUKE ENERGY CAROLINAS The following table presents the estimated fair value of investments in available-for-sale securities. December 31, 2013 Gross...

  • Page 176
    ... FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) PROGRESS ENERGY The following table presents the estimated fair value of investments in available-for-sale securities for Progress Energy. December 31, 2013...

  • Page 177
    ... DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) DUKE ENERGY PROGRESS The following table presents the estimated fair value of investments in available-for-sale securities. December 31, 2013 Gross...

  • Page 178
    ...• DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) DUKE ENERGY FLORIDA The following table presents the estimated fair value of investments in available-for-sale securities. December 31, 2013 Gross...

  • Page 179
    ...• DUKE ENERGY 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 investments in available-for-sale securities. December 31, 2013 Gross...

  • Page 180
    ... DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) 16. FAIR VALUE MEASUREMENTS Investments in equity securities...

  • Page 181
    ...• DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) DUKE ENERGY The following tables provide recorded balances...

  • Page 182
    ... CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) The following tables provide reconciliations of beginning and ending...

  • Page 183
    ... CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) DUKE ENERGY CAROLINAS The following tables provide recorded balances...

  • Page 184
    ... ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) December 31, 2012 Investments Balance...

  • Page 185
    ... CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) The following table provides a reconciliation of beginning and ending...

  • Page 186
    ... CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) The following table provides a reconciliation of beginning and ending...

  • Page 187
    ... ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) DUKE ENERGY OHIO The following tables provide recorded balances...

  • Page 188
    ... CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) December 31, 2012 (in millions) Available-for-sale equity securities...

  • Page 189
    ... CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) December 31, 2012 Investment Type Duke Energy Natural gas contracts FERC...

  • Page 190
    PART II DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) 17. VARIABLE INTEREST ...

  • Page 191
    ...CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) December 31, 2012 (in millions) ASSETS Current...

  • Page 192
    ... ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) CRC On a revolving basis, CRC buys certain accounts receivable arising from the sale of electricity and/or related services...

  • Page 193
    ... II DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) December 31, 2012 Duke Energy...

  • Page 194
    .... Duke Energy Ohio 2013 Anticipated credit loss ratio Discount rate Receivable turnover rate 0.6% 1.2% 12.8% 2012 0.7% 1.2% 12.7% Duke Energy Indiana 2013 0.3% 1.2% 10.3% 2012 0.3% 1.2% 10.2% The following tables show sales and cash ï¬,ows related to receivables sold. Duke Energy Ohio Years Ended...

  • Page 195
    ... DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Average Shares (In millions, except per-share amounts) 2013...

  • Page 196
    ...DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) 20. STOCK-BASED COMPENSATION STOCK...

  • Page 197
    PART II DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) RESTRICTED STOCK UNIT ...

  • Page 198
    ...CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) 21. EMPLOYEE BENEFIT PLANS Duke Energy uses a December 31 measurement date...

  • Page 199
    ... DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Year Ended December 31, 2012 Duke...

  • Page 200
    ... DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Year Ended December 31, 2012 Duke...

  • Page 201
    ...DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Year Ended December 31, 2012 Duke...

  • Page 202
    ... plan's projected benefit payments discounted at this rate with the market value of the bonds selected. The average remaining service period of active covered employees is nine years for Duke Energy, Duke Energy Carolinas, Duke Energy Ohio and Duke Energy Indiana and eight years for Progress Energy...

  • Page 203
    ...II DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Expected Benefit Payments Duke...

  • Page 204
    PART II DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Amounts Recognized in ...

  • Page 205
    ... DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Year Ended December 31, 2012 Duke...

  • Page 206
    ... II DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) December 31, 2012 Duke Energy...

  • Page 207
    ... DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Duke Energy December 31, 2013 Benefit Obligations Discount...

  • Page 208
    ... DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Year Ended December 31, 2012 Duke...

  • Page 209
    ...DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Year Ended December 31, 2012 Duke...

  • Page 210
    ... DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Year Ended December 31, 2012 Duke...

  • Page 211
    ... II DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) December 31, 2012 Duke Energy...

  • Page 212
    ... CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Sensitivity to Changes in Assumed Health Care Cost Trend Rates Year Ended...

  • Page 213
    ... ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Progress Energy Master Retirement Trust As of December 31, 2012...

  • Page 214
    ... II DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Duke Energy Master Retirement...

  • Page 215
    ... CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) The following table provides a reconciliation of beginning and ending...

  • Page 216
    ... PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) VEBA I The following tables provide the fair value measurement amounts for VEBA I other post-retirement assets. (in millions) Cash...

  • Page 217
    ... II DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) 22. INCOME TAXES INCOME TAX...

  • Page 218
    ... DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Year Ended December 31, 2011 Duke...

  • Page 219
    ...DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Year Ended December 31, 2012 Duke...

  • Page 220
    ...INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) On July 23, 2013, HB 998 was signed into law. HB 998 reduces the North Carolina corporate income tax rate from...

  • Page 221
    ... II DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) December 31, 2012 Duke Energy...

  • Page 222
    ... DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Year Ended December 31, 2011 Duke...

  • Page 223
    ... DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Year Ended December 31, 2012 Duke...

  • Page 224
    ... DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC. Combined Notes to Consolidated Financial Statements - (Continued) Year Ended December 31, 2012 Duke...

  • Page 225
    ... 2012 Costs to achieve Progress Energy merger (see Note 2) $ (8) $ (7) $ (457) $ (164) $ (636) Edwardsport IGCC charges (see Note 4) (420) - (180) (28) (628) Voluntary Opportunity Plan deferral (see Note 19) 101 - - - 101 Total $ (327) $ (7) $ (637) $ (192) $(1,163) (a) Revised retail rates became...

  • Page 226
    ...) 2013(a) Costs to achieve the merger with Duke Energy (see Note 2) Crystal River Unit 3 charges (see Note 4) Harris and Levy nuclear development charges (see Note 4) Total 2012 Costs to achieve the merger with Duke Energy (see Note 2) Florida replacement power refund (see Note 4) Crystal River Unit...

  • Page 227
    ... 2013(a) Costs to achieve the merger with Duke Energy (see Note 2) Crystal River Unit 3 charges (see Note 4) Levy nuclear development charges (see Note 4) Total 2012 Costs to achieve the merger with Duke Energy (see Note 2) Replacement power refund (see Note 4) Crystal River Unit 3 charges (see Note...

  • Page 228
    ... 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 during the fiscal quarter ended December 31, 2013...

  • Page 229
    ...(b) Includes 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 the Duke Energy Registrants' financial statements included in the annual report on Form 10-K and the review of...

  • Page 230
    ... Ended December 31, 2013, 2012 and 2011 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...

  • Page 231
    ... Financial Statements or Notes. Duke Energy Indiana, Inc. Consolidated Financial Statements Consolidated Statements of Operations and Comprehensive Income for the Years Ended December 31, 2013, 2012 and 2011 Consolidated Balance Sheets as of December 31, 2013 and 2012 Consolidated Statements of Cash...

  • Page 232
    ... February 28, 2014 DUKE ENERGY CORPORATION (Registrant) By: /s/ LYNN J. GOOD Lynn J. Good Vice Chairman, President and 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...

  • Page 233
    ..., thereunto duly authorized. Date: February 28, 2014 DUKE ENERGY CAROLINAS, LLC (Registrant) By: /s/ LYNN J. GOOD Lynn J. Good 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...

  • Page 234
    ..., thereunto duly authorized. Date: February 28, 2014 PROGRESS ENERGY, INC. (Registrant) By: /s/ LYNN J. GOOD Lynn J. Good 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...

  • Page 235
    ..., thereunto duly authorized. Date: February 28, 2014 DUKE ENERGY PROGRESS, INC. (Registrant) By: /s/ LYNN J. GOOD Lynn J. Good 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...

  • Page 236
    ..., thereunto duly authorized. Date: February 28, 2014 DUKE ENERGY FLORIDA, INC. (Registrant) By: /s/ LYNN J. GOOD Lynn J. Good 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...

  • Page 237
    ..., thereunto duly authorized. Date: February 28, 2014 DUKE ENERGY OHIO, INC (Registrant) By: /s/ LYNN J. GOOD Lynn J. Good 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...

  • Page 238
    ..., thereunto duly authorized. Date: February 28, 2014 DUKE ENERGY INDIANA, INC (Registrant) By: /s/ LYNN J. GOOD Lynn J. Good 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...

  • Page 239
    ... Form 10-K (+). Duke Energy Carolinas Duke Energy Progress Duke Energy Florida Duke Energy Ohio Duke Energy Indiana Exhibit Number 2.1 Agreement and Plan of Merger between Duke Energy Corporation, Diamond Acquisition Corporation and Progress Energy, Inc., dated as of January 8, 2011, (incorporated...

  • Page 240
    ... IV Duke Energy Carolinas Duke Energy Progress Duke Energy Florida Duke Energy Ohio Duke Energy Indiana X Exhibit Number 3.8 By-Laws of Duke Energy Indiana, Inc. (formerly PSI Energy, Inc.), effective July 23, 2003, (incorporated by reference to Exhibit 3.1 to registrant's Quarterly Report on Form...

  • Page 241
    PART IV Duke Energy Carolinas Duke Energy Progress Duke Energy Florida Duke Energy Ohio Duke Energy Indiana Exhibit Number 4.1.5 Fifth Supplemental Indenture, dated as of August 25, 2011, (incorporated by reference to Exhibit 4.1 to Duke Energy Corporation's Current Report on Form 8-K filed on ...

  • Page 242
    ..., dated as of September 21, 2012, (incorporated by reference to Exhibit 4.1 to Duke Energy Carolinas, LLC's Current Report on Form 8-K filed on September 21, 2012, File No.1-04928). Mortgage and Deed of Trust between Duke Energy Progress, Inc. (formerly Carolina Power & Light Company) and The Bank...

  • Page 243
    ...Energy Ohio Duke Energy Indiana Exhibit Number 4.4.2 Seventy-second Supplemental Indenture, dated as of September 1, 2003, (incorporated by reference to Exhibit 4 to Duke Energy Progress, Inc.'s (formerly Carolina Power & Light Company (d/b/a Progress Energy Carolinas, Inc.)) Current Report on Form...

  • Page 244
    ... IV Duke Energy Carolinas Duke Energy Progress Duke Energy Florida X Duke Energy Ohio Duke Energy Indiana Exhibit Number 4.7.2 Eighth Supplemental Indenture (incorporated by reference to Exhibit 4(c) to Duke Energy Florida, Inc.'s (formerly Florida Power Corporation) Registration Statement on Form...

  • Page 245
    ... Gas & Electric Company) Current Report on Form 8-K filed on September 6, 2013, File No. 1-01232). Indenture between Duke Energy Indiana, Inc. (formerly PSI Energy, Inc.) and The Bank of New York Mellon Trust Company, N.A., as Successor Trustee, dated as of November 15, 1996, (incorporated...

  • Page 246
    ... Energy Carolinas Duke Energy Progress Duke Energy Florida Duke Energy Ohio Duke Energy Indiana X Exhibit Number 4.12.4 Tenth Supplemental Indenture, dated as of June 9, 2006, (incorporated by reference to Exhibit 4.1 to Duke Energy Indiana, Inc.'s (formerly PSI Energy, Inc.) Current Report on Form...

  • Page 247
    ...Carolinas Duke Energy Progress Duke Energy Florida Duke Energy Ohio Duke Energy Indiana X Exhibit Number 4.13.16 Sixty-second Supplemental Indenture, dated as of July 9, 2010, (incorporated by reference to Exhibit 4.1 to Duke Energy Indiana, Inc.'s (formerly PSI Energy, Inc.) Current Report on Form...

  • Page 248
    ...IV Duke Energy Carolinas Duke Energy Progress Duke Energy Florida Duke Energy Ohio X 10.1 Purchase and Sale Agreement between Duke Energy Americas, LLC and LSP Bay II Harbor Holding, LLC, dated as of January 8, 2006, (incorporated by reference to Exhibit 10.2 to registrant's Quarterly Report on Form...

  • Page 249
    ... electricity and related power scheduling services from September 1, 2006 through December 31, 2021 (incorporated by reference to Exhibit 10.15 to Duke Energy Corporation's Quarterly Report on Form 10-Q for the quarter ended June 30, 2006 filed on August 9, 2006, File No. 1-32853). Asset Purchase...

  • Page 250
    PART IV Duke Energy Carolinas Duke Energy Progress Duke Energy Florida Duke Energy Ohio Duke Energy Indiana Exhibit Number 10.19 Purchase and Sale Agreement between Cinergy Capital & Trading, Inc., as Seller, and Fortis Bank, S.A./N.V., as Buyer, dated as of June 26, 2006, (incorporated by ...

  • Page 251
    ... Ohio Duke Energy Indiana Exhibit Number 10.29 Amended and Restated Engineering and Construction Agreement between Duke Energy Carolinas, LLC and Shaw North Carolina, Inc., dated as of December 21, 2009, (incorporated by reference to Exhibit 10.41 to Duke Energy Corporation's Annual Report on Form...

  • Page 252
    ... Progress Duke Energy Florida Duke Energy Ohio Duke Energy Indiana Exhibit Number 10.41** Form of Performance Award Agreement of Duke Energy Corporation under the Duke Energy Corporation 2010 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.1 to registrant's Current Report on Form...

  • Page 253
    PART IV Duke Energy Carolinas Duke Energy Progress Duke Energy Florida Duke Energy Ohio Duke Energy Indiana Exhibit Number *10.52** Amended and Restated Duke Energy Corporation Executive Cash Balance Plan, dated as of January 1, 2014. 10.53 Purchase, Construction and Ownership Agreement, dated as ...

  • Page 254
    ...Duke Energy Florida Duke Energy Ohio Duke Energy Indiana Exhibit Number 10.64+ Form of Progress Energy, Inc. Restricted Stock Agreement pursuant to the 2002 Progress Energy Inc. Equity Incentive Plan, effective July 2002, (incorporated by reference to Exhibit 10(c)(18) to registrant's Annual Report...

  • Page 255
    ... Carolinas, LLC, Duke Energy Ohio, Inc., Duke Energy Indiana, Inc., Duke Energy Kentucky, Inc., Duke Energy Progress, Inc., Duke Energy Florida, Inc., and Wells Fargo Bank, National Association, dated as of December 18, 2013, (incorporated by reference to Exhibit 10.1 to registrant's Current Report...

  • Page 256
    ... of Ratio of Earnings to Fixed Charges - DUKE ENERGY FLORIDA, INC Computation of Ratio of Earnings to Fixed Charges - DUKE ENERGY OHIO, INC. Computation of Ratio of Earnings to Fixed Charges - DUKE ENERGY INDIANA, INC. List of Subsidiaries Consent of Independent Registered Public Accounting Firm...

  • Page 257
    PART IV Duke Energy Carolinas 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 Duke Energy Progress Duke Energy Florida Duke Energy Ohio Duke Energy Indiana Exhibit Number *32.1.2 *32.1.3 *32.1.4 *32.1.5 *32.1.6 *32.1.7 *32.2.1 *32.2.2 *...

  • Page 258
    ...Energy Center 526 South Church Street Charlotte, NC 28202 Financial Publications Duke Energy's Annual Report and related financial publications can be found on our website at duke-energy.com/investors. Printed copies are also available free of charge upon request. Duplicate Mailings If your shares...

  • Page 259
    Bridge photo taken in the Ellerbe Creek watershed, part of an urban nature preserve in Durham, North Carolina, that includes land donated by Duke Energy Corporation. www.duke-energy.com