Duke Energy 2013 Annual Report Download - page 20

TABLE OF CONTENTS
FORM 10-K FOR THE YEAR ENDED
DECEMBER 31, 2013
Item Page
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
GLOSSARY OF TERMS
PART I.
1. BUSINESS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
DUKE ENERGY............................................... 5
GENERAL .................................................. 5
BUSINESS SEGMENTS ........................................ 5
GEOGRAPHIC REGIONS ........................................ 12
EMPLOYEES ................................................ 12
EXECUTIVE OFFICERS ......................................... 12
ENVIRONMENTAL MATTERS .................................... 13
DUKE ENERGY CAROLINAS ..................................... 13
PROGRESS ENERGY .......................................... 13
DUKE ENERGY PROGRESS...................................... 13
DUKE ENERGY FLORIDA........................................ 13
DUKE ENERGY OHIO .......................................... 13
DUKE ENERGY INDIANA........................................ 14
1A. RISK FACTORS.................................................... 14
1B. UNRESOLVED STAFF COMMENTS...................................... 19
2. PROPERTIES ..................................................... 20
3. LEGAL PROCEEDINGS .............................................. 24
4. MINE SAFETY DISCLOSURES ......................................... 25
PART II.
5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER
MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES ................. 26
6. SELECTED FINANCIAL DATA.......................................... 28
7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS .............................. 28
7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK ......... 58
8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA ..................... 59
9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
ACCOUNTING AND FINANCIAL DISCLOSURE ............................. 210
9A. CONTROLS AND PROCEDURES ....................................... 210
PART III.
10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE ........... 210
11. EXECUTIVE COMPENSATION ......................................... 210
12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS ................ 211
13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR
INDEPENDENCE .................................................. 211
14. PRINCIPAL ACCOUNTING FEES AND SERVICES ........................... 211
PART IV .
15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES ....................... 212
SIGNATURES................................................ 214
EXHIBIT INDEX .............................................. E-1
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This document includes forward-looking statements within the meaning of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-
looking statements are based on management’s beliefs and assumptions. These forward-looking
statements, which are intended to cover Duke Energy and the applicable Duke Energy Registrants,
are identified by terms and phrases such as “anticipate,” “believe,” “intend,” “estimate,”
“expect,” “continue,” “should,” “could,” “may,” “plan,” “project,” “predict,” “will,” “potential,”
“forecast,” “target,” “guidance,” “outlook,” and similar expressions. Forward-looking statements
involve risks and uncertainties that may cause actual results to be materially different from the
results predicted. Factors that could cause actual results to differ materially from those indicated
in any forward-looking statement include, but are not limited to:
• State, federal and foreign legislative and regulatory initiatives, including costs of
compliance with existing and future environmental requirements or climate change,
as well as rulings that affect cost and investment recovery or have an impact on rate
structures or market prices;
• The ability to recover eligible costs, including those associated with future significant
weather events, and earn an adequate return on investment through the regulatory process;
• The costs of decommissioning Crystal River Nuclear Station – Unit 3 (Crystal River
Unit 3) could prove to be more extensive than are currently identified and all costs may
not be fully recoverable through the regulatory process;
• The risk that the credit ratings of the company or its subsidiaries may be different from
what the companies expect;
• Costs and effects of legal and administrative proceedings, settlements, investigations
and claims;
• Industrial, commercial and residential growth or decline in service territories or customer
bases resulting from customer usage patterns, including energy efficiency efforts and
use of alternative energy sources, including self-generation and distributed generation
technologies;
• Additional competition in electric markets and continued industry consolidation;
• Political and regulatory uncertainty in other countries in which Duke Energy conducts
business;
• The influence of weather and other natural phenomena on operations, including the
economic, operational and other effects of severe storms, hurricanes, droughts and
tornadoes;
• The ability to successfully operate electric generating facilities and deliver electricity
to customers;
• The impact on facilities and business from a terrorist attack, cyber security threats,
data security breaches, and other catastrophic events;
• The inherent risks associated with the operation and potential construction of nuclear
facilities, including environmental, health, safety, regulatory and financial risks;
• The timing and extent of changes in commodity prices, interest rates and foreign
currency exchange rates and the ability to recover such costs through the regulatory
process, where appropriate, and their impact on liquidity positions and the value of
underlying assets;
• The results of financing efforts, including the ability to obtain financing on favorable
terms, which can be affected by various factors, including credit ratings and general
economic conditions;
• Declines in the market prices of equity securities and fixed income securities and
resultant cash funding requirements for 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 of other participants;
• The ability to control operation and maintenance costs;
• The level of creditworthiness of counterparties to transactions;
• Employee workforce factors, including the potential inability to attract and retain key
personnel;
• The ability of subsidiaries to pay dividends or distributions to Duke Energy Corporation
holding company (the Parent);
• The performance of projects undertaken by our nonregulated businesses and the
success of efforts to invest in and develop new opportunities;
• The effect of accounting pronouncements issued periodically by accounting standard-
setting bodies;
• The impact of potential goodwill impairments;
• The ability to reinvest retained earnings of foreign subsidiaries or repatriate such
earnings on a tax-free basis; and
• The ability to successfully complete future merger, acquisition or divestiture plans.
In light of these risks, uncertainties and assumptions, the events described in the
forward-looking statements might not occur or might occur to a different extent or at a different
time than the Duke Energy Registrants have described. Forward-looking statements speak only
as of the date they are made; the Duke Energy Registrants undertake no obligation to publicly
update or revise any forward-looking statements, whether as a result of new information, future
events or otherwise that occur after that date.