Duke Energy 2013 Annual Report Download - page 189

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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, 2012
Investment Type
Fair Value
(in millions) Valuation Technique Unobservable Input Range
Duke Energy
Natural gas contracts $(53) Discounted cash flow Forward natural gas curves — price per MMBtu $ 2.33 —$ 9.99
FERC mitigation power sale agreements $(23) Discounted cash flow Forward electricity curves — price per MWh $ 25.83 —$ 48.69
FTRs $ 11 RTO auction pricing FTR price — per MWh $ 23.63 —$ 39.22
Electricity contracts $ (8) Discounted cash flow Forward electricity curves — price per MWh $ 24.82 —$ 77.96
Capacity contracts $ (3) Discounted cash flow Forward capacity curves — price per MW day $ 95.16 —$105.36
Capacity option contracts $ 3 Discounted cash flow Forward capacity option curves — price per MW day $ 4.68 —$ 77.96
Reserves $(12) Bid-ask spreads, implied volatility, probability of default
Total Level 3 derivatives $(85)
Duke Energy Carolinas
FERC mitigation power sale agreements $(12) Discounted cash flow Forward electricity curves — price per MWh $ 25.83 —$ 48.69
Progress Energy
Natural gas contracts $(27) Discounted cash flow Forward natural gas curves — price per MMBtu $ 4.07 —$ 4.45
FERC mitigation power sale agreements $(11) Discounted cash flow Forward electricity curves — price per MWh $ 25.83 —$ 48.69
Total Level 3 derivatives $(38)
Duke Energy Progress
Natural gas contracts $(27) Discounted cash flow Forward natural gas curves — price per MMBtu $ 4.07 —$ 4.45
FERC mitigation power sale agreements $(11) Discounted cash flow Forward electricity curves — price per MWh $ 25.83 —$ 48.69
Total Level 3 derivatives $(38)
Duke Energy Ohio
FTRs $ 1 RTO auction pricing FTR price — per MWh $ 27.17 —$ 39.22
Electricity contracts $ (1) Discounted cash flow Forward electricity curves — price per MWh $ 25.90 —$ 57.50
Natural gas contracts $ 5 Discounted cash flow Forward natural gas curves — price per MMBtu $ 3.30 —$ 4.51
Reserves $(11) Bid-ask spreads, implied volatility, probability of default
Total Level 3 derivatives $ (6)
Duke Energy Indiana
FTRs $ 10 RTO auction pricing FTR price — per MWh $ 23.63 —$ 35.43
OTHER FAIR VALUE DISCLOSURES
The fair value and book value of long-term debt, including current maturities, is summarized in the following table. Estimates determined are not necessarily
indicative of amounts that could have been settled in current markets. Fair value of long-term debt uses Level 2 measurements.
December 31, 2013 December 31, 2012
(in millions) Book Value Fair Value Book Value Fair Value
Duke Energy $40,256 $42,592 $39,461 $44,001
Duke Energy Carolinas $ 8,436 $ 9,123 $ 8,741 $10,096
Progress Energy $14,115 $15,234 $14,428 $16,563
Duke Energy Progress $ 5,235 $ 5,323 $ 4,840 $ 5,277
Duke Energy Florida $ 4,886 $ 5,408 $ 5,320 $ 6,222
Duke Energy Ohio $ 2,188 $ 2,237 $ 1,997 $ 2,117
Duke Energy Indiana $ 3,796 $ 4,171 $ 3,702 $ 4,268
At both December 31, 2013 and December 31, 2012, fair value of cash and cash equivalents, accounts and notes receivable, accounts payable, and notes
payable and commercial paper are not materially different from their carrying amounts because of the short-term nature of these instruments and/or because the
stated interest rates approximate market rates.